Genting Malaysia Bhd. · MYX:GENM
Genting Malaysia Bhd — CLSA Investors' Forum 2009 - Hong Kong
39 slides from Genting Malaysia Bhd's conference presentation, September 2009
Slide 1: Corporate Presentation
Corporate Presentation CLSA IF2009 - HK September 2009
Slide 2: Agenda
Agenda ♠ Introduction ♥ Financial Highlights ♣ Looking Ahead ♦ Competition – Singapore’s Integrated Resorts ♠ Q&A
Slide 3: Introduction
Introduction 6 GENTING GENTING City of Entertainment MALAYSIA
Slide 4: Overview
Overview • Asia’s leading leisure & hospitality company • Market capitalisation - RM17 billion (US$4.8 billion) • 10,000 rooms at the Genting Highlands Resort • Over 12,000 employees • Over 19 million visitors in 2008
Slide 5: Corporate Rebranding
Corporate Rebranding • Reflect country of listing, origin & current operations • Leverage on the strength and value of the Genting brand • Part of Genting Group’s ongoing rebranding exercise … corporate brand positioning and identity
Slide 6: Corporate Structure – Leisure & Hospitality
Corporate Structure – Leisure & Hospitality Genting Berhad 48.5% Genting Malaysia Berhad (Listed on Bursa Malaysia) 19.3% Star Cruises Ltd
Slide 7: Our Vision
Our Vision: To be the leading Leisu re, Hospitality « Entertainment Corporation in the world 6 GENTING GENTING City of Entertainment MALAYSIA
Slide 8: Global Peer Comparison
Global Peer Comparison EBITDA (US$) by Property in 2008 US$ million 600 584 486 499 500 400 391 392 300 268 247 253 215 200 162 100 0 Mirage Sands Mandalay Wynn LV MGM Bellagio Venetian Wynn Venetian Resorts Macau Bay Grand LV LV Macau Macau World … world’s largest gaming property
Slide 9: Accolades
Accolades Genting Highlands Resort now stands proudly as the World’s leading integrated leisure and entertainment resort. It has received numerous awards of excellence in recognition of the high standard of its facilities and services. The following are major awards received in 2008: ¾ Asia’s Leadin
Slide 10: Casino
Casino Premium Market Mid Market General Gaming • Maxims Casino • International Room • StarWorld • Club Elite • Members Room • @Latte • VIP Room • Circus Palace • Hollywood • Monte Carlo … 10 different themes catering to all
Slide 11: Hotels
Hotels • More than 70% of rooms cater for the mass market. • Consistently high occupancy rates (90%) First World Hotel World’s Largest Hotel … 10,000 rooms at Genting Highlands Resort recognised by Guinness World Records
Slide 12: Food & Beverage
Food & Beverage • Over 100 food & beverage outlets available • Owned 40% of outlets serving 13 million covers annually … wide range of dining options
Slide 13: Theme Parks
Theme Parks • Outdoor & indoor theme parks, covering 1.3m sq. ft. of floor area • >60 adrenaline-pumping rides & attractions • Winner of the Hospitality Asia Platinum Awards Tourist Attraction (2007/2008) … endless excitement and “Fun at the Peak”
Slide 14: Entertainment
Entertainment Arena of The Pavilion Genting International Stars Showroom • State-of-the-art • Nightly resident • Musical, theatre & concert venue show events venue • 5,500 capacity • 2,000 capacity • 1,600 capacity • >250,000 patrons • >350,000 patrons • 20,000 patrons … variety of shows offered at
Slide 15: Shopping
Shopping • First World Plaza measuring > 500,000 sq. ft. • Over 200 retail shops, kiosks and restaurants • Branded stores and retail shops for the mass market … shopping and leisure paradise all under 1 roof
Slide 16: MICE
MICE • 150,000 sq. ft. of conference facility • Grand ballroom, 18 meeting rooms, business centre and VIP reception rooms • Holds > 2,000 functions annually … One-stop destination for Meetings, Incentives, Conventions, Exhibitions & Events
Slide 17: Awana Hotels & Resorts
Awana Hotels & Resorts Awana Genting Awana Kijal Golf, Awana Porto Malai, Highlands Golf and Beach Langkawi Country Resort and Spa Resort 5-star, 430-room resort 5-star, 343-room beach Seafront 208-room resort, offering a world class resort, located in located on north west 18-hole championship golf
Slide 18: Financial Highlights
Finanefal nlighiights 6 GENTING GENTING City of Entertainment MALAYSIA
Slide 19: Financial Performance at a Glance
Financial Performance at a Glance In RM million 1H 09 1H 08 % Revenue 2,380 2,333 2 Revenue ↑ 2% due to: • Higher volume of EBITDA 934 974 (4) business; offset by • Weaker luck factor EBITDA Margin (%) 40 42 from premium players business Net Profit 825 907 (9) If normalised VIP win %: • Revenue ↑13%
Slide 20: Strong Growth in Revenue and EBITDA
Strong Growth in Revenue and EBITDA • Revenue growth : 5-year CAGR of 13% • EBITDA growth : 5-year CAGR of 12% • Positive contributions from major divisions REVENUE (RM ‘m) EBITDA (RM ‘m) & EBITDA MARGIN … consistent strong growth
Slide 21: Visitors & Revenue
Visitors & Revenue • Visitors growth : 5-year CAGR of 4% • Revenue growth : 5-year CAGR of 13% • Increase in average spent per visitor VISITORS (M) REVENUE (RM ‘M) s CAGR R 4% Visitor en ue CAG Rev 13% … revenue growth faster than visitors 21
Slide 22: Entrenched Domestic Position
Entrenched Domestic Position • Day trippers (mostly locals) - in excess of 70% of total visitors to GHR • Remaining visitors are hotel guests (majority Malaysians) VISITOR GROWTH (M) HOTEL GUEST NATIONALITY ‘08 s CAGR 4% Visitor … domestic mass support remains resilient 22
Slide 23: Consistent High Occupancy Rates
Consistent High Occupancy Rates ROOM STATISTICS • Six hotels at GHR with 10,000 rooms • Average hotel occupancy of 90% in 2008 (2007: 89%) • Robust support from WorldCardTM members • Bus Program underpinned weekday occupancy Avg Room 78 89 76 77 72 79 Rate (RM) … driven by yield management 23
Slide 24: WorldCard™ Members
WorldCard™ Members WORLDCARD MEMBERS (K) • 2.7 Million members AGR 22% C • Dynamic and proven loyalty system • Strong recruitment and retention rate • > 50% hotel rooms taken up by members … effective members strategy 24
Slide 25: Member of the Genting Group Global Network
Member of the Genting Group Global Network PRESENCE AND ACCESSIBILITY Sales and marketing Office • 11 Major countries Casino Network • Resorts World Manila • Resorts World Sentosa • Star Cruises/NCL • Genting UK … extensive coverage
Slide 26: Looking Ahead
Looking Ahead 6 GENTING GENTING City of Entertainment MALAYSIA
Slide 27: Prospects and Focus
Prospects and Focus • Prospects: Cautiously Optimistic • To focus on: • Membership marketing • Customer retention • Yield management
Slide 28: Products and Services - Yield Management
Products and Services - Yield Management Casino • VIP service • Upgrade casino facilities • New games • Actively review existing casino products (mix and operating hours) • High level of service delivery remains key … balancing yield
Slide 29: Future Expansion
Future Expansion Genting Highlands Resort • Continue to upgrade facilities and infrastructure • No new room capacity envisaged at this stage Other Opportunities • Continue to monitor for suitable opportunities in the Leisure & Hospitality industry 29
Slide 30: Capital Management Strategy
Capital Management Strategy Net Div per Share (sen) Share Buy Back • Initiated since July 2007 • To date, bought back 206.2m shares for RM705m • 3.5% of total paid up capital Dividend • Annual dividend CAGR of 15% • Dividend payout ratio (over adjusted earnings) of 21% … continuing emphasis on capit
Slide 31: Competition – Singapore's Integrated Resorts
0% GENTING COMPETINION = SINGAPORE’S INTEGRATED RESORTS GENTING MALAYSIA @ City of Entertainment
Slide 32: Competition – Track Record and Experience
Competition – Track Record and Experience • Pioneer in South East Asia • More than 38 years of experience in leisure and hospitality • Asia and World’s Leading Casino Resort* * - By World Travel Awards
Slide 33: Competition – Visitors Comparison
Competition – Visitors Comparison • Malaysians represent approximately 85% of GHR’s 19m+ visitors • Main mode of transport to GHR – By Road • Foreign tourists expected to represent 60% of Singapore IRs’ visitors • Expected main mode of transport to Singapore IRs – By Air SINGAPORE IRs’ EXPECTED GHR
Slide 34: Competition - Gaming
Competition - Gaming • Mass Market – Entry Levy • VIP Market – Remain competitive via marketing promotions and high level of service. – Expanded pie BREAKDOWN OF GAMING REVENUE * Analyst estimates
Slide 35: Competition – Non Gaming
Competition – Non Gaming GHR SINGAPORE DIFFERENTIAL (US$) (US$) Average Room Rate 25 200* 8x Theme Park Ticket Price 10 50* 5x * Analyst estimates • Varying price points • Value-for-money entertainment
Slide 36: Leveraging on the Genting Network – Joint Marketing
Leveraging on the Genting Network – Joint Marketing WorldCard™ • Dynamic & proven loyalty system • Cross border earning and redemption of loyalty points Customer Relationship Management • Premium Member Privileges • Single view of customer
Slide 37: Competition - Summary
Competition - Summary Impact on Mitigating Advantages • Consistent 70% revenue mix for mass market business • Locals form bulk of our 19m+ visitors Mass • Different price points Market • Competitive room rates, F&B and Theme Park prices … providing great value to the mass market • Maintain 30% mix f
Slide 38: Investment Highlights
Investment Highlights 1 Leading integrated leisure & hospitality operator in the region 2 Continuous growth and stable financial profile 3 Good, stable cash generation from resilient business model 4 Experienced management to face competition Genting Highlands Resort World’s Leading Casino Resort 20
Slide 39: Thank You
Thank You Visit us at www.gentingmalaysia.com 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 director
Genting Malaysia Berhad — CLSA Investors' Forum 2009 - Hong Kong on 6ix