F Y 1 9 R E S U L T S B R I E F I N G€¦ · Non-Thailand Thailand S$'M Total S$23.2m Net S$10.1m...
Transcript of F Y 1 9 R E S U L T S B R I E F I N G€¦ · Non-Thailand Thailand S$'M Total S$23.2m Net S$10.1m...
F Y 1 9
R E S U L T S
B R I E F I N G
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1 . A G E N D A H E A D E R
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Certain statements in this document may constitute "forward-looking statements”, including statements regarding, amongst other things, Banyan Tree’s business and growth strategy. These statements reflect Banyan Tree’s expectations and are subjectto risks and uncertainties that may cause actual results to differ materially and may adversely affect the outcome and financialeffects of the plans described herein. You are cautioned not to rely on such forward-looking statements. Banyan Tree disclaimsany obligation to update their view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein, except where they would be required to do so under applicable law.
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OV E RV I E W
K E Y S E G M E N T S P E R F O R M A N C E
R E V I E W
F U T U R E P L A N S
A G E N DA
1
2
3
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P r e s e n t a t i o n b y E d d y S e e ,
P r e s i d e n t a n d G r o u p M D
O V E R V I E W
4
FY18 (S$’M) FY19 (S$’M) Change1 (%)
Revenue 329.0 347.0 5%
Operating Profit (a) 83.1 56.2 32%
One-off Gains on Disposal (b) (37.6) -
Allowance on Impairment losses2
(c) - 8.9
Core Operating Profit [(a) + (b) + (c)] 45.5 65.1 43%
Cash Profit3 44.1 22.5 49%
Net Asset Value 719.8 747.4 4%
1 . O V E R V I E W
Group Financial Highlights
1 Variance is computed based on figures to the nearest thousands & in line with announcement in SGXNet.2 One-off impairment provided on Morocco’s assets and trade receivables.3 Cash Profit = Profit after taxation and minority interests adjusted for depreciation, amortisation expense, fair value adjustments on various investments, impairments, effective interest adjustment on receivables and fixed
assets written off. Adjustment items are net of MI.
“Core operating profit is the most critical metric of corporate performance because it excludes non-recurring, one-off
gains or losses and shows the underlying health of any business.”
Ho KwonPing, Executive Chairman
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1 . O V E R V I E W
Key Figures1
Note:
1. Financial figures as at 31-Dec-19.
2. NAV denotes Net Asset Value.
3. Share price based on closing share price of S$0.395 as at 13-Feb-20.
4. Gearing ratio is defined as net debt divided by total equity (includes minority interests).
5. Enterprise value (EV) defined as sum of Market Capitalization, Debt and Minority Interest, less Cash.
EBITDA
S$0.8b S$56m
Enterprise Value5
NAV2 Per Share Share Price3 / NAV Cash and
Cash Equivalents
Net Gearing Ratio4
S$0.80 S$131m
57%
51%
discount
EV/EBITDA
15x
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K E Y
S E G M E N T S
B U S I N E S S
R E V I E W
7
H O T E L &
F E E -
B A S E D
B U S I N E S S
8
4.3
(4.5)
18.9
14.6
-$6.0
$0.0
$6.0
$12.0
$18.0
$24.0
$30.0
$36.0
FY18 FY19
Non-Thailand Thailand
S$'M
Total S$23.2m
NetS$10.1m
13.1m
2 . H O T E L & F E E - B A S E D
B U S I N E S S
Hotel Investments – Financial Performance
HighlightsOperating Profit
Owned Hotels1
1. Hotel management fees attributed for hotels managed and owned by BTH was allocated to hotel management segment.
Absence of Seychelles
contribution (S$4.9m).
Impairment loss on
Morocco’s assets
(S$5.3m).
profit (Thailand) due
to lower revenue.
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1.9 2.4 2.6 2.6
24.2 23.3
$0.0
$6.0
$12.0
$18.0
$24.0
$30.0
$36.0
FY18 FY19
Design and Others Spa/Gallery Hotel Management
S$'M
Total S$28.7m
Total S$28.3m
0.4m
2 . H O T E L & F E E - B A S E D
B U S I N E S S
Fee-Based Business – Financial Performance
HighlightsOperating Profit
1. Hotel management fees attributed for hotels managed and owned by BTH was allocated to hotel management segment.
2. Hotel management revenue includes royalty fees.
fees income.
Partially cushioned by:
staff costs.
S&M expenses.
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60%
54%
60%60%
67%
55% 59%58%
50%
55%
60%
65%
70%
1Q 2Q 3Q 4Q
%
2019 2018
FY18: 60%
FY19: 58%
2 . H O T E L & F E E - B A S E D
B U S I N E S S
Hotel Operating Performance – Ave Occupancy (%)
HighlightsAll Hotels (Same Store1)
1. Same Store Concept excludes all new resorts opened in the past 2 years as they take on an average two years to stabilize.
2% points mainly due
to resorts in Thailand,
Seychelles and
Indonesia, partially
cushioned by higher
occupancy in Maldives.
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364
307
311 333
384
317
309304
200
250
300
350
400
450
1Q 2Q 3Q 4Q
S$
2019 2018
FY18: 330
FY19: 329
2 . H O T E L & F E E - B A S E D
B U S I N E S S
Hotel Operating Performance – Ave Room Rates (S$)
HighlightsAll Hotels (Same Store1)
1. Same Store Concept excludes all new resorts opened in the past 2 years as they take on an average two years to stabilize.
Consistent with last
year.
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219
167
185 199
258
176
181 177
100
150
200
250
300
1Q 2Q 3Q 4Q
S$
2019 2018
FY18: 197
FY19: 193
2 . H O T E L & F E E - B A S E D
B U S I N E S S
Hotel Operating Performance – RevPAR (S$)
HighlightsAll Hotels (Same Store1)
1. Same Store Concept excludes all new resorts opened in the past 2 years as they take on an average two years to stabilize.
2%
Due to lower occupancy.
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2 . H O T E L & F E E - B A S E D
B U S I N E S S
Room Revenue By Country Of Residence (COR)*
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Highlights
China guests make up
22% of owned hotels.
China guests make up
majority (90%) of China
managed hotels.
Contribution to Group
EBITDA from China
guests in managed hotels
is approx. 4% whereas
owned hotels is approx.
7%.
FY18 FY19
* Room revenue is derived from hotel guests and sorted by their COR.
Note: Comparative figures have been adjusted to reclassify Banyan Tree Seychelles from Owned to Managed hotel.
Asia(Owned: Hotel Investments)
China(Managed: Fee-based)
FY18 FY19
2 . H O T E L & F E E - B A S E D
B U S I N E S S
Room Revenue By Country Of Residence (COR)*
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Highlights
China guests make up
15% of Asia managed
hotels.
Contribution of fees to
Group EBITDA from
China guests on Asia
managed hotels is
approx. 1%.
China guests make up
less than 1% of Americas
managed hotels.
Americas(Managed: Fee-based)
* Room revenue is derived from hotel guests and sorted by their COR.
Note: Comparative figures have been adjusted to reclassify Banyan Tree Seychelles from Owned to Managed hotel.
Asia(Managed: Fee-based)
14.6 7.7
23.6 22.1
13.2 12.4 6.4 7.1
57.8
49.3
$0
$10
$20
$30
$40
$50
$60
1 Q 1 9 1 Q 2 0 1 Q 1 9 1 Q 2 0 1 Q 1 9 1 Q 2 0 1 Q 1 9 1 Q 2 0 1 Q 1 9 1 Q 2 0
China (Managed) Asia (Owned) Asia (Managed) Americas (Managed) Total
US$'M
(6%)(47%)
(15%)
(6%)
11%
2 . H O T E L & F E E - B A S E D
B U S I N E S S
Hotel Business – Forward Bookings
HighlightsAll HotelsOn-The-Book (“OTB”) Room Revenue
1. Comparative figures have been adjusted to reclassify Banyan Tree Seychelles from “Asia (Owned)” to “Asia (Managed)”.
2. Based on OTB as at 18 February 2020.
Forward bookings overall
impacted by Covid-19 (
15%).
Owned hotels forward
bookings only 6%.
China managed hotels
by 47%.
No impact to our resorts in
Americas ( 11%).
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2 . H O T E L & F E E - B A S E D
B U S I N E S S
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Highlights
Cancellation for Thailand
hotels peaked around end
Jan 2020 whereas
Maldives peaked in early
Feb 2020.
Cancellations for both
Thailand and Maldives
hotels have since been
declining.
Net pick up for last two
weeks has been
stabilizing with pick up
offsetting cancellation.
Rev
enu
e (S
$’0
00
)R
even
ue
(S$
’00
0)
Covid-19Pick-up & Cancellation Trend for Owned Hotels
Thailand Hotels Q1’ 2020Daily Cancellation vs. Daily Pick-up
Maldives Hotels Q1’ 2020Daily Cancellation vs. Daily Pick-up
2 . H O T E L & F E E - B A S E D
B U S I N E S S
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Highlights
Thailand
• Sharp decline lead mainly
by China and Japan
guests.
• Significant growth in
Europe guests, especially
from Russia.
Maldives
• Similarly, China guests is
the major contributor to
the decline for Maldives
hotels.
• Main growth are mainly
from Europe guests.
Thai
lan
dM
ald
ive
sCovid-19COR Top 5 Declining & Growth for Owned HotelsFrom 23 January to 30 June (SGD ‘000)
No. of Keys
No. of Hotels: 35 37 39 826722 25 29 32 34 9355474741
1,100 1,436 1,698 1,897 2,116 2,284 2,405 2,338 2,547 2,794 2,677 3,107 3,465 3,933 4,372
475
998 1,618
1,746 1,827
2,220 2,226 1,699 1,699
2,113 2,411
3,182
3,748
4,501
4,931
229
229 285
486 488
488
488
824
1,193
516 516
714 714
838
2,621
3,583
4,267
112
112
112 112
112 112
112 187 112
437 424
638
688
688
1,026
1,687
2,546
3,428 3,755
4,055 4,616
4,972 4,969 5,159
6,544 6,714
8,253
11,010
13,529
15,789
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020E 2021E 2022E 2023E
Banyan Tree Angsana Cassia Dhawa Others
2 . H O T E L & F E E - B A S E D
B U S I N E S S
Hotel Business – Projected Growth
HighlightsSteady Pipeline Growth
Number of keys1
1. Based on contracts that were already signed.
CAGR 2019 - 2023 = 24%Past Current Future
(2009) (2019) (2023)
66% 27% 13%
34% 73% 87%
Owned Hotels %
Managed Hotels %
CAGR of 24% based on
contracts completion
dates.
46 hotels to be opened
in next 4 years.
Room keys estimated to
grow by 135% from
about 6,700 keys as at
31 Dec 2019 to about
15,800 keys by end of
2023.
Additional keys are
largely managed without
any equity interest.
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R E S I D E N C E S
A N D
E X T E N D E D
S T AY
20
5.5
28.8
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
FY18 FY19
S$'M
$23.3m
2 . R E S I D E N C E S A N D
E X T E N D E D S T A Y
Residences and Extended Stay – Financial Performance
HighlightsOperating Profit1
1. Based on completed contract method of revenue recognition.
revenue recognition
from Cassia Phuket
(Phase 3) and Banyan
Tree Phuket Pool Villas.
226 units (FY19) vs.
128 units (FY18).
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$125.6 $115.9
211 units
337 units
$-
$50
$100
$150
$200
$250
$300
0
50
100
150
200
250
300
350
400
FY18 FY19
Gross Sales (Value) Gross Sales (Qty)
Unit S$'M
2 . R E S I D E N C E S A N D
E X T E N D E D S T A Y
Residences and Extended Stay – Financial Performance
HighlightsSales Progress
Recognised in Year S$'M
2020 97.3
2021 42.1
2022 38.8
Unrecognised Revenue
as at 31.12.2019: S$178.2m
In FY19, 337 units sold
(S$116m) vs. 211 units
(S$126m) in FY18.
In Aug’19, we launched
Skypark which was well
received. 68% sold.
Unrecognised Revenue at
S$178m; about half to be
recognised in 2020.
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F U T U R E
P L A N S
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3 . F U T U R E P L A N S
Future Plans
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Will continue to leverage our key competences for growth by assets/ownership rebalancing when opportunities arise.
Maintain hotel investments in Asia Pacific, our stronghold.
Continue to unlock value from our landbanks through branded hotel-residences model.
Strategic partnerships in target growth markets to boost Fee-based income.
Covid-19 Plans
Prudent cash-preservation measures, similar to other unforeseen events (eg. SARS).
Ensure health and safety, our first priority for associates and guests.
Forward planning to capture market when business rebounds.
3 . F U T U R E P L A N S
Future Plans – New Hotel Contracts Signed in 2019
* Include 10 Accor / Vanke leads.
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Brand HMA MOU
Banyan Tree 11 4
Angsana 4 4
Cassia 1 3
Dhawa 9 4
Folio 1 -
Others 1 -
Total 27* 15
Future Plans – 46 Hotels to be opened 3 . F U T U R E P L A N S
*White label
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Existing Land Bank
Land size (Hectares) 124
Gross Development Value (S$’Billion) 4.6
2020: Projects activated for development
No. of Projects 3
Land size (Hectares) 9
Gross Development Value (S$’Billion) 0.6
Percentage of land bank to be utilized (Land size) 8%
Future Plans – Residences and Extended Stay Development3 . F U T U R E P L A N S
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