Corporate Presentation CLSA IF2018 Hong Kong September 2018 1 - - PowerPoint PPT Presentation

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Corporate Presentation CLSA IF2018 Hong Kong September 2018 1 - - PowerPoint PPT Presentation

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No. 58019-U Corporate Presentation CLSA IF2018 Hong Kong September 2018 1 GROUP OVERVIEW 2 KEY PROPERTIES 3 FINANCIAL HIGHLIGHTS 4 MALAYSIA OPERATIONS 5 OVERSEAS OPERATIONS UNITED KINGDOM & EGYPT US & BAHAMAS 6

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September 2018

  • No. 58019-U

Corporate Presentation

CLSA IF2018 Hong Kong

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GROUP OVERVIEW OVERSEAS OPERATIONS

  • UNITED KINGDOM & EGYPT
  • US & BAHAMAS

FINANCIAL HIGHLIGHTS PROSPECTS & FOCUS MALAYSIA OPERATIONS

1 3 4 5 6

KEY PROPERTIES

2

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Berhad 49.3%

Malaysia

100% 100% 100% 100% 78% 100% 100%

OVERVIEW GROUP CORPORATE STRUCTURE

US & Bahamas UK & Egypt

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OVERVIEW GROUP’S KEY PROPERTIES

RW Bimini Resorts World Genting (RWG)

  • ~4.2m visitors in FY2017
  • Operates 43 casinos
  • 6 casinos in London
  • 37 casinos outside London
  • ~3,600 employees
  • 78 : 22 joint venture
  • Offers gaming, accommodation, leisure and

entertainment in the resort

  • ~550 employees
  • Malaysia’s largest integrated resort

destination

  • ~23.6m visitors in FY2017
  • ~10,500 rooms across 7 hotels
  • ~13,600 employees
  • Market leader in the Northeast US region
  • ~7.6m visitors in FY2017
  • ~1,000 employees

Resorts World Casino New York City Genting UK

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……… Bringing you the ultimate leisure and hospitality experience

RESORTS WORLD GENTING MALAYSIA

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……… One of the leading casino operators in the UK

GENTING UK RESORTS WORLD BIRMINGHAM UK

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………Market leader by gaming revenue in the Northeast US region

RESORTS WORLD CASINO NEW YORK CITY US

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……… 750-acre luxury beachfront casino resort

RESORTS WORLD BIMINI BAHAMAS

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OVERVIEW FINANCIAL HIGHLIGHTS – 2Q18 & 1H18

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In RM’mil 2Q18 2Q17 % Change 1H18 1H17 % Change

Revenue 2,422 2,292 ↑6% 4,822 4,516 ↑7% Adjusted EBITDA 702 536 ↑31% 1,310 1,101 ↑19%

Adjusted EBITDA Margin 29% 23% 27% 24%

Net Profit 378 174 ↑>100% 720 469 ↑54%

  • Improved performance aided by Malaysian operations
  • New GITP facilities and attractions at RWG have been well received
  • Aided by lower foreign exchange translation losses in 1H18
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OVERVIEW

REVENUE & ADJUSTED EBITDA BY GEOGRAPHY – 1H18

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Adjusted EBITDA Revenue

Malaysia 67% UK & Egypt 18% US & Bahamas 15% Malaysia, 83% UK & Egypt 5% US & Bahamas 12%

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OVERVIEW CAPITAL MANAGEMENT STRATEGY

Dividend

  • FY17 net dividend grew 3% yoy to 17.0 sen
  • 1H18 interim dividend of 6.0 sen (Payout ratio: 45%)

6.60 7.13 6.50 7.10 16.50* 17.00* 4.00 6.00

  • 4

8 12 16 20 FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18

Dividend per Share

Net dividend per share (sen)

*Includes a special dividend of 8.0 sen (FY16: 7.3 sen) per share

9.20 7.30 9.00 8.00

Share Buyback

  • Bought back 288 million shares to-date (4.74% of total issued capital)
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MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW – 2Q18 & 1H18

  • Improved hold percentage in the mid to premium players segment
  • Visitations grew by 21% in 1H18, boosted by new GITP attractions

In RM’mil 2Q18 2Q17 % Change 1H18 1H17 % Change Revenue 1,591.9 1,445.4 ↑10% 3,191.4 2,789.7 ↑14% Adjusted EBITDA 540.2 434.7 ↑24% 1,073.9 872.1 ↑23%

Adjusted EBITDA Margin 34% 30% 34% 31%

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MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN 1H18

5,490 5,684 5,362 5,577 5,623 5,835 2,790 3,191

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18

Revenue (RM’mil)

  • Higher business volumes following the roll out of new GITP attractions
  • Higher hold percentage in the mid to premium players segment
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2,042 1,972 1,860 1,931 1,942 1,805 872 1,074 37% 35% 35% 35% 35% 31% 31% 34% 0% 7% 14% 21% 28% 35% 42%

  • 500

1,000 1,500 2,000 2,500 3,000 FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18

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MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN 1H18

  • Improving adjusted EBITDA margins primarily attributable to:
  • Lower costs incurred in the VIP segment
  • Lower GITP ramp up costs compared to 1H17

Adjusted EBITDA (RM’mil) / Margin (%)

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MALAYSIA RWG KEY STATISTICS IN 1H18

(1H17 : 4.0mil)

4.4m

MEMBERS

73%

DAY-TRIPPERS

(1H17: 70%)

4.7m

TICKETS SOLD

(1H17: 3.7mil)

12.8m

VISITORS

↑21%

(1H17: 10.6m)

↑26% ↑10%

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MALAYSIA RWG HOTEL PERFORMANCE IN 1H18

96%

OCCUPANCY

(1H17: 93%) (1H17: RM91)

RM105

AVRG ROOM RATE

10,500

ROOMS

7 HOTELS

1.7m

ROOM NIGHTS SOLD

(1H17: 1.6m)

↑9% ↑15%

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OVERVIEW

..……… The next phase of growth at RWG

GITP

 A 10-year master plan launched in Dec 2013  RM10.4 billion capital investment  Invested RM7.0 billion as at 30 June 2018

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……. Looking forward to new and exciting attractions

2016

2016 Awana SkyWay Cable Car SkyAvenue Mall

2017

2017 SkyCasino Genting Highlands Premium Outlets* Theme Park Hotel Crockfords Hotel 2018 onwards Skytropolis Indoor Theme Park 20th Century Fox Theme Park Additional Luxury Hotels

2018 onwards 2015

2015 First World Hotel (Tower 3)

OVERVIEW GITP

*A property of Genting Simon Sdn Bhd, a JV between Genting Plantations Berhad and Simon Property Group

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..….. Transporting visitors to key attractions at the resort

Awana SkyWay cable car system Genting Highlands Premium Outlets Denotes Awana SkyWay route

SkyAvenue Mall Awana Station

AWANA SKYWAY GITP

Denotes Awana SkyWay route

Awana Hotel

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…………Exciting retail and dining experience at 6,000 feet

SKYAVENUE GITP

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…..…… Unique dining experience featuring renowned restaurants

Burger & Lobster Red Tail Malaysian Food Street Motorino

SKYAVENUE – F&B OUTLETS GITP

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THEME PARK HOTEL GITP

..…..A 448-room boutique hotel with quirky and playful decor

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……Extraordinary orchestra of audio, visual and motion graphics

SKYSYMPHONY GITP

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CROCKFORDS PLATINUM CLUB GITP

…………A luxurious space for the discerning customer

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CROCKFORDS HOTEL GITP

…..….. A 137-room hotel providing guests the ultimate comfort and luxury

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FOX WORLD STUDIO STORE GITP

…..…..The world’s first Fox specialty store

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Malaysia

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UK US & Bahamas Egypt

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UK & EGYPT – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN 2Q18 & 1H18

In £’mil 2Q18 2Q17 % Change 1H18 1H17 % Change Revenue 81.0 74.3 ↑9% 156.4 159.1 ↓2% Adjusted EBITDA 5.5 6.4 ↓15% 11.1 20.5 ↓46%

Adjusted EBITDA Margin 7% 9% 7% 13%

  • 2Q18 adjusted EBITDA impacted by:
  • Overall lower business volumes from UK land based casinos
  • Higher debts written off
  • Visitors ↓ 5% to 2.0m in 1H18 (1H17: 2.2m)
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290 324 317 231 339 362 159 156

  • 80

160 240 320 400 FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18

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UK & EGYPT – LEISURE & HOSPITALITY PERFORMANCE REVIEW – 1H18

Revenue (£’mil)

  • 1H18 revenues impacted by lower business volumes in the premium gaming

segment

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US & BAHAMAS – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN 2Q18 & 1H18

In US$’mil 2Q18 2Q17 % Change 1H18 1H17 % Change Revenue* RWNYC and RW Omni 75.3 74.4 ↑1% 152.3 146.9 ↑4% RW Bimini 6.8 8.4 ↓19% 13.1 12.6 ↑4% Total 82.1 82.8 ↓1% 165.4 159.5 ↑4% Adjusted EBITDA* RWNYC and RW Omni 28.1 30.6 ↓1% 51.5 57.1 ↓10% RW Bimini (8.4) (9.4) ↑10% (15.4) (26.6) ↑42% Total 19.7 21.2 ↓7% 36.1 30.5 ↑18%

Margin 24% 26% 22% 19%

  • RW Omni: Improved performance following the refurbishment of Hilton Miami Downtown
  • RWNYC: Lower business volumes and higher operating expenses
  • RW Bimini: Narrowing losses from improved operational efficiencies

* Before accounting standards adjustments for operating expenses

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RWNYC – LEISURE & HOSPITALITY PERFORMANCE REVIEW – 1H18

211 240 238 239 250 251 131 130

  • 60

120 180 240 300 FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18

Revenue (US$’mil)

  • Continues to lead the Northeast US region at approx. 41.1%1 market share in 1H18
  • ~6,000 machines in operation at the facility (1H17: ~5,500 machines)
  • Average WPU at US$391 in 1H18 (1H17: US$431)

1 by gaming revenue

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RESORTS WORLD OMNI HILTON MIAMI DOWNTOWN US

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Artist Impression Artist Impression

  • 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

RWNYC EXPANSION US

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  • Invested approx. US$426.3 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 all options available

* As at 30 June 2018. Includes accrued interest. **Refer to Press Release by GENM on Bursa Malaysia dated 27 February 2018

Artist Impression

FIRST LIGHT RESORT & CASINO US

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LOOKING AHEAD PROSPECTS AND FOCUS

Resorts World Genting

  • Leverage on new facilities and attractions
  • Improve yield contribution
  • Expand into regional markets
  • Enhance digital and strategic marketing

efforts

  • Intensify database marketing
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UK & Egypt

  • Premium Players Segment: Manage business volatility
  • Non-premium Players Segment: Improve business efficiency and grow market

share

  • RW Birmingham: Grow volume of business

LOOKING AHEAD PROSPECTS AND FOCUS

Resorts World Birmingham Crockfords Cairo

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US & Bahamas

  • RWNYC: Continue to boost direct marketing efforts and focus on RWNYC’s

USD400 million expansion

  • RW Omni: Leverage on the newly renovated Hilton Miami Downtown
  • RW Bimini: Improve operational efficiency and focus marketing efforts on

leisure markets

LOOKING AHEAD PROSPECTS AND FOCUS

RWNYC Resorts World Bimini

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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 (“Group”) about its business and the industry and markets in which it operates. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors some

  • f which are beyond the control of the Group and are difficult to predict. Consequently, actual results could differ

materially from those expressed or forecast in the forward looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational

  • risks. The Group does not undertake to update these forward-looking statements to reflect events or circumstances that

may arise after publication.