Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q4 2020 Earnings Presentation
32 slides from Galaxy Entertainment's earnings presentation, Feb 25, 2021
Slide 1: Q4 and Annual Results for the period end December 31, 2020
Q4 and Annual Results for the period end December 31, 2020 25 February, 2021
Slide 2: Letter from the Chairman of GEG
Letter from the Chairman of GEG I wish to take this opportunity to update you on the status of Macau and the performance of GEG in 2020. COVID-19 has continued to impact the community and businesses globally including Macau and GEG. In Q4 2020, Mainland China, Hong Kong and Macau continued to experi
Slide 3: Letter from the Chairman of GEG
Letter from the Chairman of GEG Upholding the philosophy of “what is taken from the community is to be used for the good of the community”, we have been proactively supporting Macau and the Mainland during this epidemic. GEG has been working with the community to combat the outbreak through an array
Slide 4: Executive Summary
Executive Summary GEG: Well Capitalized to Weather the Storm Q4 2020 • Q4 Group Net Revenue of $5.1 billion, down 61% year-on-year and up 229% quarter-on-quarter • Q4 Group Adjusted EBITDA of $1.0 billion, down 75% year-on-year and up 207% quarter-on- quarter • Played unlucky in Q4 which decreased A
Slide 5: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Adjusting Operations to the Current Business Environment Q4 2020 • Q4 Net Revenue of $3.3 billion, down 64% year-on-year and up 430% quarter-on-quarter • Q4 Adjusted EBITDA of $0.7 billion, down 77% year-on-year and up 193% quarter-on-quarter • Played unlucky in Q4 w
Slide 6: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Adjusting Operations to the Current Business Environment Q4 2020 • Q4 Net Revenue of $1.0 billion, down 64% year-on-year and up 380% quarter-on-quarter • Q4 Adjusted EBITDA of $0.2 billion, down 81% year-on-year and up 167% quarter-on-quarter • Played unlucky in Q4
Slide 7: Executive Summary: Broadway Macau
Executive Summary Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs Q4 2020 • Q4 Net Revenue of $16 million, down 90% year-on-year, up 23% quarter-on-quarter • Q4 Adjusted EBITDA of $(28) million, versus $(37) million in Q3 2020 and $16 million in Q4 2019 • There was
Slide 8: Executive Summary: Balance Sheet
Executive Summary Balance Sheet: Healthy and Liquid Balance Sheet • As at 31 December 2020, cash and liquid investments were $46.0 billion and net cash was $36.8 billion • As at 31 December 2020, debt was $9.2 billion, including $8.7 billion associated with our yield enhancement program and $0.5 bil
Slide 9: Executive Summary: Development Update
Executive Summary Development Update: Continuing to Pursue Development Opportunities • Continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests • Cotai Phases 3 & 4 – Continue with development works for Phases 3 & 4, with a s
Slide 10: 2020 Annual Results
2020 Annual Results February 2021 10
Slide 11: GEG Revenue Summary FY2020
GEG Revenue Summary FY2020 Fiscal 2020 Net Revenue decreased 75% YoY to $12.9 billion GEG Net Revenue (HK$’m) $51,902 Net Revenue YoY GEG Total (75)% GM, $37,441 Galaxy Macau™ (79)% StarWorld Macau (80)% BW, Broadway Macau™ (84)% $593 $12,876 BW, $94 City Clubs (77)% CC, SW, $10,917 $117 GM, $7,779
Slide 12: GEG Adjusted EBITDA FY2020
GEG Adjusted EBITDA FY2020 Group Adjusted EBITDA decreased 106% YoY to negative $1.0 billion GEG Adjusted EBITDA (HK$’m) $16,479 Adjusted EBITDA YoY GEG Total (106)% GM, $12,641 Galaxy Macau™ (107)% BW, StarWorld Macau (108)% $39 CC, $27 Broadway Macau™ (515)% SW,$3,502 CC, $117 $(1,020) BW, City Cl
Slide 13: GEG FY2020 NPAS
GEG FY2020 NPAS FY2020 Net Loss Attributable to Shareholders of $4.0 billion, including $746 million of non-recurring items, Vs profit of $13.0 billion in FY2019 (in HK$'m) FY2019 FY2020 YoY% Net Revenue $ 51,902 $ 12,876 -75% Adjusted EBITDA $ 16,479 $ (1,020) -106% Net Profit / (Loss) attributable
Slide 14: Cash and Debt Update
Cash and Debt Update Balance Sheet: Maintain a Healthy and Liquid Balance Sheet • As at 31 December 2020, cash and liquid investments were $46.0 billion and net cash was $36.8 billion • As at 31 December 2020, debt was $9.2 billion, including $8.7 billion associated with our yield enhancement progra
Slide 15: Q4 2020 Results
Q4 2020 Results February 2021 15
Slide 16: GEG Revenue Q4 2020
GEG Revenue Q4 2020 Group Net Revenue in Q4 2020 decreased 61% YoY and increased 229% QoQ to $5.1 billion GEG Net Revenue (HK$’m) YoY QoQ $12,973 GEG Total (61)% +229% Galaxy Macau™ (64)% +430% GM, $9,336 StarWorld Macau (64)% +380% $5,103 BW, Broadway Macau™ (90)% +23% GM, GM, $3,318 $154 BW, SW, $
Slide 17: GEG Adjusted EBITDA Q4 2020
GEG Adjusted EBITDA Q4 2020 Group Adjusted EBITDA improved by 207% sequentially from a negative $0.9 billion in Q3 2020 to $1.0 billion in Q4 2020, but was down when compared to Q4 2019’s $4.1 billion • Played unlucky in Q4 which decreased Adjusted EBITDA by approximately $59 million GEG Adjusted EB
Slide 18: Galaxy Macau
Galaxy Macau February 2021 18
Slide 19: Galaxy Macau Q4 2020
Galaxy Macau Q4 2020 Galaxy Macau™ Adjusted EBITDA improved by 193% sequentially from a negative $0.8 billion in Q3 2020 to positive $0.7 billion in Q4 2020, but was down when compared to Q4 2019’s $3.2 billion Galaxy Macau YoY QoQ (66)% +404% Net Revenue decreased 64% YoY and increased 430% QoQ t
Slide 20: StarWorld Macau
StarWorld Macau February 2021 20
Slide 21: StarWorld Macau Q4 2020
StarWorld Macau Q4 2020 StarWorld Macau Adjusted EBITDA improved by 167% sequentially from a negative $0.2 billion in Q3 2020 to positive $0.2 billion in Q4 2020, but was down when compared to Q4 2019’s $0.8 billion StarWorld Macau YoY QoQ Total Gross Revenue (66)% +342% Net Revenue of $1.0 billion
Slide 22: Broadway Macau
Broadway Macau™ February 2021 22
Slide 23: Broadway Macau Q4 2020
Broadway Macau™ Q4 2020 Broadway Macau™ Q4 2020 Adjusted EBITDA improved sequentially from a negative $37 million in Q3 2020 to negative $28 million in Q4 2020, but was down when compared to Q4 2019’s $16 million Broadway Macau™ YoY QoQ Total Gross Revenue (90)% +23% Net Revenue of $16 million, Vs $
Slide 24: City Clubs Q4 2020
City Clubs Q4 2020 City Clubs Q4 2020 Adjusted EBITDA decreased 71% YoY and increased 700% QoQ to $8 million Adjusted EBITDA (HK$’m) $28 $8 $1 2019 Q4 2020 Q3 2020 Q4 February 2021 24
Slide 25: Construction Materials Q4 2020
Construction Materials Q4 2020 Construction Materials Q4 2020 Adjusted EBITDA increased 18% YoY and 15% QoQ to $0.3 billion Adjusted EBITDA (HK$’m) Tai Po Concrete Plant $326 $277 $283 2019 Q4 2020 Q3 2020 Q4 February 2021 25
Slide 26: Selected Major Awards for 2020
Selected Major Awards for 2020 Award Presenter Mr. Francis Lui, Vice Chairman of Galaxy Entertainment Group – Rank No.1 13th Asian Gaming Power 50 Casino Operator of the Year Australia & Asia 13th International Gaming Awards Socially Responsible Operator (Asia / Australia) The 2nd Greater China Most
Slide 27: Selected Major Awards for 2020
Selected Major Awards for 2020 Award Presenter StarWorld My Favorite Hotel Restaurant in Macau - Feng Wei Ju U Magazine Favorite Food Awards 2020 Macau I Food Award 2020 - My Favorite Restaurant in Hotel - Feng Wei Ju I Food Award Agoda Customer Review Award 2020 Agoda.com Broadway Travelers’ Choice
Slide 28: GEG Development Update: Cotai - The Next Chapter
GEG Development Update Cotai - The Next Chapter • GEG is uniquely positioned for long term growth. We are proceeding with the development of Phases 3 & 4 and continue to review and refine plans to ensure a world-class optimal development. We see the premium market evolving with this segment preferri
Slide 29: GEG Development Update
GEG Development Update Galaxy Macau™ and StarWorld Macau • We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests Hengqin / Greater Bay Area • We continue to make progress with the planning of our project on Hengqin that
Slide 30: Summary
Summary Positioned for Growth Corporate – Well Capitalized with Strong Balance Sheet • FY2020 Net Revenue of $12.9 billion, down 75% YoY and Adjusted EBITDA of negative $1.0 billion, down 106% YoY • Q4 2020 Adjusted EBITDA of $1.0 billion, down 75% YoY • FY2020 NPAS of negative $4.0 billion, down 13
Slide 31: Disclaimer
Disclaimer This document and any verbal presentation or discussion have been prepared by Galaxy Entertainment Group Limited (the “Company”) solely for your personal reference. The information provided has not been independently verified. No representation or warranty express or implied is made as to
Slide 32: Q4 and Annual Results for the period end December 31, 2020
Q4 and Annual Results for the period end December 31, 2020 25 February, 2021
Galaxy Entertainment Group — Q4 2020 Earnings Presentation on 6ix