2020 interim results ppt (with script)v8
TRANSCRIPT
Stock Code 股份編號:1680
2020 Interim Results and Business Updates27 August 2020
Business and Performance Updates
(1) Adjusted EBITDA excluded corporate expenses(2) Loss for the periods excluded Landmark operations and other one off items(3) Net gearing ratio is expressed as a percentage of total borrowings minus cash over total equity
Summary of financial performance
1H 2020 1H 2019
The Group(excluding
Savan Legend)Savan Legend Group
The Group(excluding
Savan Legend)Savan Legend Group Change
HK$m HK$m HK$m HK$m HK$m HK$m %
Revenue 323 41 364 957 125 1,082 (66)
- Gaming 250 37 287 755 113 868 (67)
- Non-gaming 73 4 77 202 12 214 (64)
Adjusted EBITDA(1) (181) (2) (183) 130 53 183 (200)
Profit/(loss) for the period(2)
(468) (82) (550) (128) 21 (107) (412)
As of 30.06.2020 As of 31.12.2019
Liquidity
• Debt 1,960 - 1,960 1,959 - 1,959 -
• Net Gearing%(3) 21% 5% 16
2
COVID-19 ActionsMacau Operations Laos Operations
Timing Timing
Operations suspended
- Legend Palace Casinos and Babylon Casino
- 5 F&B outlets in hotels and boulevard
- Rocks Hotel and F&B outlet
5 Feb 2020
5 Feb 2020
5 Feb 2020
- Savan Legend Hotel and Casino 28 Mar 2020
Operations reopened
- Legend Palace Casinos and Babylon Casino
- 4 F&B outlets in hotels and boulevard
- Rocks Hotel and F&B outlet
20 Feb 2020
Mar & Apr 2020
1 Aug 2020
- Thakhek Club (soft Opening) 15 Jul 2020
Cost reductions in 1H
- Special leave arrangement of staff
- Reduced slot machines in operation
- Strict control on utilities and F&B costs
1H 2020 - Graduated payroll reductions &consumed all annual leave
- Renegotiated key contracts
- Strict control over essential costs
1H 2020
Cost reduction plans in 2H
- Continue to strictly control costconsumption and reduce wastage
2H 2020 - Furloughed over 1,200 local staff &continue to strictly control costs
2H 2020
Border policies - Entry from China is restricted
- Two Macau-Mainland border resumednormal service
- PRC resume granting of leisure travellingvisa from Guangdong Province to Macau
- PRC resume granting of leisure travellingvisa from all travelers from Mainland China toMacau
20 Feb 2020
3 May 2020
26 Aug 2020
23 Sep 2020
- International borders begin to close
- All travelers restricted from crossingborders
- Provinces shut down all business &allowed special request to repatriateLaotians
19 Mar 2020
23 Mar 2020
01 May 2020
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Business UpdatesItem Status Timing
Legend Palace Hotel and Casino
- Completing new F&B facilities for VIP customers- Attracted local gaming patrons to our casinos during COVID-19- Introducing more hotel and F&B/entertainment packages to attract more local and Guangdong customers
2H 2020
Macau Fisherman’s Wharf
- Renovation on Convention and Exhibition Centre was completed and grand opening was made in mid-July 2020
- Additional non-gaming attractions- More than 70 events are scheduled in the 2H 2020 including major expos andexhibition (including Mega Sales, Industry Expo, International Food Fair & etc.)
- Expecting more than 1 million visitors can be introduced in 2H 2020
July 2020
On-going
Savan Legend Resorts - Phase 2 expansion will include new entertainment and gaming facilities plus a new boutique hotel
- Thakhek Slot Club has commenced operations, with a soft opening in mid-July 2020
Q4 2020
July 2020
Cape Verde - Office building has core construction completed; commencing interior work- Construction of the hotel and casino complex has commenced; however, certain delay is expected due to COVID 19
Q4 20212022
Cambodia - SPA signed on land acquisition in Siem Reap Province in Cambodia- Land preparation and master planning for an integrated resort- In progress of transferring land titles and fencing the land
28 Dec 2018On-going
Hengqin, PRC - Acquired 21.5% of Hengqin project which holds 勵駿龐都廣場 PONTO- Offer over 300 shops with a diversified dining and entertaining experience (including cinema, gymn room, mega grocery store and other famous F&B outlets)
April 20192H 2020
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Legend Palace Hotel
Status A luxury 5 star offering with gaming facilities primarily for our in-house customers
Six months performance in 2020:
Games drop (Mass) HK$ 847 million
Turnover (VIP) HK$ 1 billion
Net win HK$ 217 million
Hold rate Mass 19.6% , VIP 4.8%
Rooms 223Tables (in operation) 60
Slots (in operation) 51Visitation 0.4 millionOccupancy 44%Staff (Gaming) 501Staff (non-gaming) 424
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Night view of Legend Palace
Legend Palace Hotel was opened since 2017, within 5 minutes walking from the Macau Ferry Terminal
New footbridge to Macau Ferry Terminal
The bridge linking from Legend Palace to Macau Ferry Terminal is newly built and available for use since April 2020
MacauFisherman’s Wharf
Status Legend BoulevardRocks HotelHarbourview Hotel and Babylon Casino
Six months performance in 2020:
Games drop (Mass) HK$ 346 million
Turnover (VIP) HK$ 910 million
Net win HK$ 82 million
Hold rate Mass 15.7% , VIP 3.1%
Tables in Operation 21Rooms Harbourview Hotel: 444
Rocks Hotel: 72
Occupancy Harbourview Hotel: 32% Rocks Hotel: 74% (up to Feb 2020)
Visitation 0.5 millionStaff (Gaming) 219Staff (non-gaming) 980
Events in MFW
First outdoor night market event in Macau since start of COVID-19 restrictions
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VR Zone
VR Zone joined “Macau Ready Go!” Campaign, and is one of the most popular attractions
Macau Fisherman’sWharf
Soda Port – New restaurant
Demon Chef Alvin Leung is bringing his Michelin Star Brand to the Soda Port at Legend Palace Hotel. We expect the restaurant should be opening in Q4 2020
Alvin Leung is famous in making X-treme Chinese Cuisine. His two restaurants were awarded with Michelin Stars (three Michelin Stars in HK and one Michelin Star in London)
The facilities will include fine dining, private dining and a cocktail bar and will cater to our VIP and Premium Mass guests
Demon Chef Alvin Leung is bringing his Michelin Star Brand to the Soda Port at Legend Palace Hotel. We expect the restaurant should be opening in Q4 2020
Alvin Leung is famous in making X-treme Chinese Cuisine. His two restaurants were awarded with Michelin Stars (three Michelin Stars in HK and one Michelin Star in London)
The facilities will include fine dining, private dining and a cocktail bar and will cater to our VIP and Premium Mass guests
7
New Renovated CEC Ballroom
Grand opening ceremony for the renovated ballroom was held on 17 July 2020.
The renovated ballroom is the largest facility in the Macau Peninsula and is a major draw for MFW and the Legend Palace Hotel.
Pipeline of events for 2H2020 included more than 70 events and exhibition, including Mega Sale Carnival, Baby Products Fair, International Home Expo, Macau Industrial Products Show, International Food Fair and etc.
Savan Resorts –Savannakhet
Status 99 year exclusive monopoly on gaming for 3 provinces, 50 year land lease and annual flat tax with no limit on number of gaming tables and electronic gaming machines
Six months performance in 2020:
Games drop HK$799 million
Net win HK$41 million
Hold rate Mass 25.4% , VIP 3.4%
Visitation 136,000 (Savan-Mukdahan Border, during 2019)
Rooms 472
Tables (in March) 48
Slots (in March) 133Staff (Gaming) 633
Staff (non-gaming) 721
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Site Overview
Savan Resorts
Extensive revitalization of the exterior façade of the main casino with plans to upgrade the entrance and driveway
Extensive revitalization of the exterior façade of the main casino with plans to upgrade the entrance and driveway
Site is 50 ha with 80 year lease and 99 year monopoly on gaming for the three provinces from 2016. This site area has ample land for the development of the Suites (Phrase 2) and additional facilities including gun club, ATV track and villas (Phrase 3)
The Suites –Savannakhet
Status Phase 2 construction has commenced and will be completed by 1H 2020
40 suite boutique hotel, VIP gaming, spa, pool, three F&B facilities,
Convention facilities for weddings / functions
High tech golf driving range with lounge
Targeting Premium Mass and VIP customers
Private gated entrance, limo service from neighboring airports
Once completed, The Suites will be the highest end premium F&B and hotel facilities in this region of SEA and will be a “Game Charger” for the property
Phase 2 budget
Approx. US$15 million
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Hi-Tech Golf Range
A golf driving will be included in The Suites and it will also be ready to open by the end of 2020
VIP lounge will cater to 25 premium mass and VIP gaming tables with lounge facilities and outdoor gardenVIP lounge will cater to 25 premium mass and VIP gaming tables with lounge facilities and outdoor garden
The Suites Lounge
Thakhek Club –Thakhek
Status Entered into a long-term lease agreement for existing slot club, shopping and hotel facilities in Q4 2019 (built but never operated). Renovations of the existing Slot Club completed by mid-June 2020 and rebranded to Savan Resorts, Thakhek Club, existing facilities operations started 15 Jul, 2020.
Current offerings: - 109 Slot Machines in Mass Floor & 22 Slot
Machines in VIP Room- 40 Standard Rooms & 4 Suite Rooms- Savanna Restaurant - Ruby Bar / Lounge
Phase 2 Overview
USD12 million budget for 2nd Phase:
Property additions include: - Mass gaming floor for gaming tables, 2
restaurants (All day dining & Vietnamese), retail outlets, atrium gardens, 48 room 4 star hotel, VIP gaming rooms, KTV, sports bar and kids zone and revitalized casino façade and entrance.
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Boutique Hotel
4 star hotel with 44 spacious guest rooms4 star hotel with 44 spacious guest rooms
Main Casino Floor
World class slot club that blends latest technology with classic gamesWorld class slot club that blends latest technology with classic games
Praia, Cape Verde
Status On 22 July 2015, the Company entered into agreements with the Government of Cape Verde
First phase is expected to be completed by late 2021
Structural bridge has been constructed
Exterior work on office building has completed, with interior work commenced
Hotel foundation work has commenced
Expect certain delay on construction work due to COVID-19
Market place
Over 819,000 in 2019 (increase 7% compared to 2018)
Phase1 Budget EUR94 million
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All day dining
Restaurant with views over the pool and seaRestaurant with views over the pool and sea
Hotel lounge
The Lounge includes element of Cape Verde culture into the interior DesignThe Lounge includes element of Cape Verde culture into the interior Design
Siem Reap, Cambodia
Status Signed Sales and Purchase Deed for 1,200 hectares of Land in Siem Reap
Total consideration of USD90M
Continuous growing tourism market
Tourism Statistics
6,600,000 tourists in 2019
100 flights per day to Cambodia from SEA and EA
1,400 hotels in Siem Reap
GDP growth rate of 7.1% in 2019
Plan Planned integrated resort including, hotel, golf course, conventions, water park, cultural facilities and agri-tourism facilities
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Hengqin, PRCStatus On 27 April 2019, completed acquisition of
21.5% of Hengqin project company for HK$85 million
Holds 勵駿龐都廣場 PONTO with construction area of 140,000m2, offering over 300 shops which provide visitors with diversified shopping, dining and entertaining experience
Ponto opened its door on 15 Dec 2019 under MLD management
Occupancy is reaching over 40% since acquisition and is targeted for 70% by 2020
Management MLD is now actively managing the project in terms of leasing, events and property management
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Ponto Night view
Portuguese architecture in the heart of Hengqin, expressing Sino-Luso connection to MacauPortuguese architecture in the heart of Hengqin, expressing Sino-Luso connection to Macau
Car showIntroducing the property to the residence of Hengqin with games, music and danceIntroducing the property to the residence of Hengqin with games, music and dance
Connectivity
Status - New Lotus Border construction completed and capacity increased 10 times in preparation of heavy traffic between Macau and Hengqin
- Boarder opened on 18 Aug, 2020
- Railway connecting Zhuhai station to Hengqin was completed 4Q 2019 and will open after rest of the line has been completed and commissioned
Ponto - An underground tunnel is connecting Ponto with Zhuhai station, within 5 minutes walking
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Financial Performance
MFW Gross Gaming Revenue (1) (“GGR”)
68% drop in GGR at MFW, outperformed Macau market by 10%
GGR in HK$m
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MLD Management continues to be encouraged by the growth in the Mass and Premium Mass business at the Legend Palace Casino
$564
$101
$271
$936
$166 $54 $79
$299
0
100
200
300
400
500
600
700
800
900
1,000
Legend PalaceMass
BabylonMass
VIP Total
1H 2019 1H 2020-71%
-46%
-71%
-68%
(1) GGR analysis includes results for Mass and VIP gaming tables in Legend Palace Casino and Babylon Casino only
Consolidated Reported Revenue (1)
$868
$287
$214
$77
0
200
400
600
800
1000
1200
2019 1 H 2020 1H
Gaming Non-Gaming
-66%
Reported Revenue Breakdown (HK$m)
Total reported revenue in 1H 2020 decreased by 66% YoY
Historical Reported Revenue (HK$m)
$856
$980 $952 $913
$1,082
$1,278
$364
200
400
600
800
1,000
1,200
1,400
1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020
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MLD Management continues to see promising growth in both Macau and Laos Gaming and our strategy is to focus on increasing non-gaming contributions and expanding our customer base
(1) Reported revenue included Macau gaming commission net of Macau Gaming tax, gaming revenue from casino operations in Laos and revenue from non-gaming operations
$1,082
$364
Adjusted Consolidated EBITDA (1)
Adjusted consolidated EBITDA decreased 206%
$1
($98)
$122
($87)
$53
($2)
$176
($187)
($200)
($150)
($100)
($50)
$0
$50
$100
$150
$200
1H 2019 1H 2020
MFW (excluded Legend Palace) Legend Palace Savan Legend Total
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MLD Management expect Adjusted EBITDA to continue to improve once market normalizes with Mass and VIP customers returning
(1) Adjusted consolidated EBITDA excluded Landmark operations, one off items and corporate expenses
� Attract new and branded tenants for Ponto
� Develop master plan for Siem Reap Integrated resort
� Continue construction of Cape Verde project
� Continue in building and renewing non-gaming offerings in MFW
� Focus on bringing more events and promotion to increase traffic to the property
Other projects
Macau Growth
Laos Growth � Phase 2 of Savan Resorts will increase attractiveness for VIP customers
� Opening of Thakhek property will bring new revenue stream from the region
Key initiatives
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Thank YouContact Information
Principal Office
Macau Legend Development Limited
Address: Palace Building, Macau Fisherman’s Wharf, Avenida da Amizade, Macau
Tel: (853) 2822 2211
Fax: (853) 2822 2266
Executive Director & VP Corporate Business Development
Mr. Donald Chow
Tel: (853) 2822 2211
Fax: (853) 2822 2266
Email: [email protected]
EVP, Chief Financial Officer & Company Secretary
Mr. Kelvin Wong
Tel: (853) 2822 2211
Fax: (853) 2822 2266
Email: [email protected]