Genting Malaysia Bhd. · MYX:GENM
Genting Malaysia Bhd — J.P. Morgan Malaysia Opportunities Forum 2018
47 slides from Genting Malaysia Bhd's conference presentation, Jul 9, 2018
Slide 1: J.P. Morgan Malaysia Opportunities Forum
No. 58019-U J.P. Morgan Malaysia Opportunities Forum 9 July 2018
Slide 2: Agenda
1 GROUP OVERVIEW 2 KEY PROPERTIES 3 KEY HIGHLIGHTS IN 2017 4 FINANCIAL HIGHLIGHTS 5 MALAYSIA OPERATIONS 6 OVERSEAS OPERATIONS • UNITED KINGDOM & EGYPT • US & BAHAMAS 7 PROSPECTS & FOCUS 2
Slide 3: Group Corporate Structure
OVERVIEW GROUP CORPORATE STRUCTURE Berhad 49.3% Malaysia US & Bahamas UK & Egypt 100% 100% 100% 100% 78% 100% 100%
Slide 4: Group's Key Properties
OVERVIEW GROUP’S KEY PROPERTIES Resorts World Genting (RWG) Resorts World Casino New York City A world-class integrated resort destination ~7.6m visitors in FY2017 ~23.6m visitors in FY2017 Equipped with ~6,000 video gaming machines (“VGM”) and other leisure ~10,500 rooms facilities ~15,
Slide 5: Malaysia
MALAYSIA
Slide 6: Malaysia: Resorts World Genting
MALAYSIA RESORTS WORLD GENTING ……… Bringing you the ultimate leisure and hospitality experience 6
Slide 7: UK: Genting UK Resorts World Birmingham
GENTING UK UK RESORTS WORLD BIRMINGHAM ……… One of the leading casino operators in the UK 7
Slide 8: US: Resorts World Casino New York City
RESORTS WORLD CASINO US NEW YORK CITY ………Market leader by gaming revenue in the Northeast US region 8
Slide 9: Bahamas: Resorts World Bimini
BAHAMAS RESORTS WORLD BIMINI ……… 750-acre luxury beachfront casino resort 9
Slide 10: Malaysia
MALAYSIA
Slide 11: Key Highlights: GITP, Crockfords Platinum Club
GITP MALAYSIA CROCKFORDS PLATINUM CLUB 11
Slide 12: GITP – Theme Park Hotel
MALAYSIA GITP – THEME PARK HOTEL 12
Slide 13: GITP – Crockfords Hotel
MALAYSIA GITP – CROCKFORDS HOTEL 13
Slide 14: Genting UK Crockfords Cairo
GENTING UK EGYPT CROCKFORDS CAIRO 14
Slide 15: RWNYC Expansion
US RWNYC EXPANSION Artist Impression 15
Slide 16: Financial Highlights
W) GHLIGHT GENTING MALAYSIA @
Slide 17: Financial Highlights – FY17 & 1Q18
OVERVIEW FINANCIAL HIGHLIGHTS – FY17 & 1Q18 % % In RM’mil FY17 FY16 1Q18 1Q17 Change Change Revenue 9,329 8,932 ↑4% 2,399 2,224 ↑8% Adjusted EBITDA 2,207 2,433 ↓9% 608 565 ↑8% Margin 24% 27% 25% 25% Net Profit (excluding gain on 1,071 1,528* ↓30% - - disposal of GENHK) Net Profit 1,071 2,801 ↓62% 34
Slide 18: Revenue & Adjusted EBITDA by Geography – FY17
OVERVIEW REVENUE & ADJUSTED EBITDA BY GEOGRAPHY – FY17 Revenue Adjusted EBITDA US & US & Bahamas, Bahamas UK & 16% 10% UK & Egypt Egypt, 11% 21% Malaysia, Malaysia, 63% 79% 18
Slide 19: Capital Management Strategy
OVERVIEW CAPITAL MANAGEMENT STRATEGY Dividend per Share 20 Net dividend per share (sen) 16.50* 17.00* 16 8.00 7.30 12 8 9.20 7.13 7.10 9.00 6.60 6.50 4 - FY12 FY13 FY14 FY15 FY16 FY17 *Includes a special dividend of 8.0 sen (FY16: 7.3 sen) per share Dividend FY17 dividend payout ratio of 83% (FY16
Slide 20: Malaysia Operations
MALAYSIA . OPERATIONS = Eee
Slide 21: Malaysia Leisure & Hospitality Performance Review – FY17
MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW – FY17 % In RM’mil FY17 FY16 Change Revenue 5,835.2 5,623.2 ↑4% Adjusted EBITDA 1,804.5 1,942.4 ↓7% Margin 31% 35% Overall higher volume of business following the opening of new attractions and facilities under GITP, offset by lower hold % in the
Slide 22: Malaysia Leisure & Hospitality Performance Review – 1Q18
MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW – 1Q18 % In RM’mil 1Q18 1Q17 Change Revenue 1,599.5 1,344.3 ↑19% Adjusted EBITDA 533.7 437.4 ↑22% Margin 33% 33% Launch of new GITP facilities have been well-received Higher revenue in 1Q18 driven by overall higher volumes of business 22
Slide 23: Malaysia Revenue Performance Review FY17 & 1Q18
MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN FY17 & 1Q18 Revenue (RM’mil) 7,000 5,684 5,623 5,835 6,000 5,490 5,362 5,577 5,000 4,000 3,000 2,000 1,600 1,344 1,000 - FY12 FY13 FY14 FY15 FY16 FY17 1Q17 1Q18 Steady growth despite: • Disruptions arising from ongoing GITP development works s
Slide 24: Malaysia Adjusted EBITDA Performance Review
MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN FY17 & 1Q18 Adjusted EBITDA (RM’mil) / Margin (%) 3,000 42% 37% 35% 35% 35% 35% 33% 33% 2,500 31% 35% 2,042 1,972 1,860 1,931 1,942 2,000 1,805 28% 1,500 21% 1,000 14% 534 437 500 7% - 0% FY12 FY13 FY14 FY15 FY16 FY17 1Q17 1Q18 Lower adjusted
Slide 25: RWG Key Statistics in FY17
MALAYSIA RWG KEY STATISTICS IN FY17 23.6m 72% VISITORS DAY-TRIPPERS (FY16: 20.2m) ↑17% (FY16: 71%) 4.2m 8.3m MEMBERS TICKETS SOLD (FY16: 5.8mil) ↑5% (FY16 : 4.0mil) ↑42% 25
Slide 26: RWG Hotel Performance in FY17
MALAYSIA RWG HOTEL PERFORMANCE IN FY17 10,500 3.3m ROOMS ROOM NIGHTS SOLD 7 HOTELS (FY16: 3.0m) ↑11% RM92 95% AVRG ROOM RATE OCCUPANCY (FY17:RM92) (FY16: 93%) 26
Slide 27: Genting Integrated Tourism Plan (GITP)
GENTING INTEGRATED TOURISM PLAN (GITP)
Slide 28: GITP Overview
GITP OVERVIEW A 10-year master plan launched in Dec 2013 RM10.4 billion capital investment Invested RM6.7 billion as at 31 March 2018 ..……… The next phase of growth at RWG 28
Slide 29: GITP Overview
GITP OVERVIEW 2016 Awana SkyWay Cable Car SkyAvenue Mall 2015 First World Hotel (Tower 3) 2017 2018 onwards SkyCasino New Indoor Theme Park Genting Highlands Premium 20th Century Fox Theme Outlets* Park Theme Park Hotel Zouk Genting Crockfords Hotel Additional Luxury Hotels 2015 2016 2017 2018 onwar
Slide 30: GITP Awana SkyWay
GITP AWANA SKYWAY SkyAvenue Mall Awana SkyWay cable car system Awana Station Awana Hotel Genting Highlands Premium Outlets Denotes Denotes Awana Awana SkyWay SkyWay route route ..….. Transporting visitors to key attractions at the resort 10
Slide 31: GITP SkyAvenue
GITP SKYAVENUE …………Exciting retail and dining experience at 6,000 feet 31
Slide 32: SkyAvenue – F&B Outlets
GITP SKYAVENUE – F&B OUTLETS Burger & Lobster La Fiesta Malaysian Food Street Motorino …… Unique dining experience featuring renowned restaurants 32
Slide 33: GITP SkySymphony
GITP SKYSYMPHONY ……Extraordinary orchestra of audio, visual and motion graphics 33
Slide 34: UK, US & Bahamas, Egypt
UK US & Bahamas Egypt Malaysia 34
Slide 35: Lu = | 03) = ° i=} o z = ° a = z
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Slide 36: United Kingdom & Egypt Performance Review FY17 & 1Q18
UNITED KINGDOM & EGYPT PERFORMANCE REVIEW IN FY17 & 1Q18 % % In £’mil FY17 FY16 1Q18 1Q17 Change Change Revenue 362.3 339.4 ↑7% 78.9 89.3 ↓12% Adjusted EBITDA 44.7 50.0 ↓11% 6.7 14.5 ↓53% Margin 12% 15% 8% 16% FY17 adjusted EBITDA impacted by: • Higher operating costs in the premium players segmen
Slide 37: UK & Egypt Performance Review – FY17 & 1Q18
UNITED KINGDOM & EGYPT PERFORMANCE REVIEW – FY17 & 1Q18 Revenue (£’mil) 400 362 339 324 317 320 290 240 231 160 89 79 80 - FY12 FY13 FY14 FY15 FY16 FY17 1Q17 1Q18 Visitors ↓ 5% to 4.2m in FY17 (FY16: 4.4m) Visitors ↓ 8% to 1.0m in 1Q18 (1Q17: 1.1m) 37
Slide 38: Genting Malaysia
GENTING MALAYSIA
Slide 39: United States & Bahamas Performance Review FY17 & 1Q18
UNITED STATES & BAHAMAS PERFORMANCE REVIEW IN FY17 & 1Q18 % % In US$’mil FY17 FY16 1Q18 1Q17 Change Change Revenue* US** 281.4 277.7 ↑1% 77.0 72.6 ↑6% Bahamas 25.0 30.1 ↓17% 6.2 4.2 ↑49% Adjusted EBITDA* US** 98.2 98.8 ↓1% 23.4 26.5 ↓12% Margin 35% 36% 30% 38% Bahamas (44.3) (91.7) ↑52% (6.9) (17.2)
Slide 40: US – RWNYC Performance Review – FY17 & 1Q18
US – RWNYC PERFORMANCE REVIEW – FY17 & 1Q18 Revenue (US$’mil) 300 250 251 240 238 239 240 211 180 120 64 64 60 - FY12 FY13 FY14 FY15 FY16 FY17 1Q17 1Q18 Approximately 6,000 machines in operation at the facility Average WPU at US$387 in 1Q18 (1Q17: US$430) 1.8mil visitors in 1Q18 (1Q17: 1.9 mil
Slide 41: US RWNYC Expansion
US RWNYC EXPANSION Broke ground on a USD400 million expansion in July 2017 New attractions include a new 400-room hotel, additional gaming space and a variety of dining, entertainment and retail experiences Scheduled to open in phases from end of 2019 ArtistImpression Artist Impression 41
Slide 42: US First Light Resort & Casino
US FIRST LIGHT RESORT & CASINO Invested approx. US$403.5 million* in interest bearing promissory notes Development of the project is currently stalled pending further court developments and/or actions by relevant governmental authorities** The Group is working closely with the Tribe to review
Slide 43: Malaysia
MALAYSIA
Slide 44: Looking Ahead: Prospects and Focus – Resorts World Genting
LOOKING AHEAD PROSPECTS AND FOCUS Resorts World Genting Expand into regional markets Leverage on new facilities and attractions Enhance strategic marketing efforts Intensify database marketing Optimise yield management 44
Slide 45: Looking Ahead: Prospects and Focus – UK & Egypt
LOOKING AHEAD PROSPECTS AND FOCUS UK & Egypt VIP Markets: Manage business volatility Mass Markets: Strengthen position RW Birmingham and UK online operations: Stabilise operations and grow volume of business Resorts World Birmingham Crockfords Cairo 45
Slide 46: Looking Ahead: Prospects and Focus – US & Bahamas
LOOKING AHEAD PROSPECTS AND FOCUS US & Bahamas RWNYC: Continue to boost direct marketing efforts and focus on RWNYC’s USD400 million expansion RW Omni: To leverage on the newly renovated Hilton Miami Downtown RW Bimini: Focus marketing efforts on leisure markets RWNYC Resorts World Bimini 46
Slide 47: Disclaimer
Disclaimer Some of the statements made in this presentation which are not statements of historical facts are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the directors and management of the Genting Malaysia Group
Genting Malaysia Berhad — J.P. Morgan Malaysia Opportunities Forum 2018 on 6ix