U CITY PCL 1Q 2018 EARNINGS PRESENTATION

Transcription

1 1Q 2018 EARNINGS PRESENTATION 17 MAY 2018

2 IR CONTACT Address: U City Public Company Limited IR Department 20 th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand Telephone: +66(0) #2301 Fax: +66(0) ir@ucity.co.th Website: DISCLAIMER This document has been prepared and distributed by the Investor Relations Department of U City Public Company Limited ( U City ) solely for information purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in U City and should not be relied on as such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. U City does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, U City assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of U City or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. All information contained in this document is presented as of the date indicated within, and U City assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, U City assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. U City undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2

3 CONTENTS Section 1 Financial Performance Section 2 Business Updates Section 3 Appendix 3

4 KEY HIGHLIGHTS 1Q 2018 Total Revenue THB 1,481mn % YoY Operating EBITDA* THB 238mn +33.3% YoY Key Developments Consolidation of Vienna House Improving operating performance of our hotels in Thailand (Eastin Grand Sathorn, Anantara Chiang Mai, Avani Khon Kaen) Net D/E Ratio 0.34x vs 0.93x (31 Dec 2017) Total Assets THB 56.9bn +42.0% YoY Entire Business Transfer of Unicorn Enterprises Company Limited (EBT of UE) Capital increase via preference shares issuance *Excludes other income and impairment charges, profit/loss from discontinued operation 4

5 FINANCIAL PERFORMANCE OVERVIEW PROFIT & LOSS THB mn 1Q Q 2017 % YoY 4Q 2017 % QoQ Total Revenues 1, % 1,673.9 (11.5%) Operating Revenue 1, % 1,570.5 (15.0%) Gross Operating Profit (GOP) % (16.7%) SG&A % % Share of Profit 8.6 (2.2) N.A. 0.3 N.A. Operating EBITDA* % (36.1%) Finance Cost % % Net Profit (132.4) 26.8 N.A. 0.9 N.A. GOP Margin 61.2% 68.5% 62.5% EBITDA Margin 16.0% 37.3% 24.3% Operating EBITDA Margin* 17.8% 53.3% 23.7% Net Profit Margin (8.9%) 5.8% 0.1% *Includes share of profit/loss from investments in associates and JV REVENUE CONTRIBUTION 1Q 2018 REVENUE GROWTH CONTRIBUTION 1Q 2018 Revenue Contribution by Segment (Unit: THB mn) 336.2% 20.9% 16.8% Hospitality THB 1,288mn 86.9% Others THB 146mn 9.9% THB 1,481mn 459 Office THB 47mn 3.2% ,481 1Q 2017 Hospitality Office Others 1Q 2018 Section 1: Financial Performance 5

6 FINANCIAL PERFORMANCE OVERVIEW (Unit: MB) 1,500 1,300 1, , Net Loss MB U City 33 VHC (199) UK Group 6 Others (100) (300) (500) NET PROFIT Q4FY2017 Operating Revenue Operating Cost SG&A Finance Cost Deprec. & Amort. Tax & Others NET LOSS Q1FY2018 GOP MB GOP margin 61% EBITDA MB EBITDA margin 16% 6

7 HOSPITALITY SEGMENT OVERVIEW BREAKDOWN OF REVENUE BY TYPE & SOURCE (THB mn) OPERATING EBITDA (THB mn) & MARGIN (%) ,520 1,616 1, % 7.0% 10.3% 12.1% 9.3% 21.3% 24.4% 25.4% 24.9% 36.5% 18.5% 20.7% 25.8% 100.0% 71.7% 65.3% 62.4% 65.8% 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 Owned Leased Managed % Thai Sourced Revenue UPCOMING KEYS PIPELINE % 30.5% % % % Q '17 2Q '17 3Q '17 4Q '17 1Q '18 Operating EBITDA Operating EBITDA margin UPCOMING KEYS TIMELINE 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 19,174 Type Total 10,251 Owned 2Q: 200 3Q: ,549 8,316 8, ,253 1,253 7,083 7,063 7,022 8,923 Leased 2Q: 206 3Q: 164 1Q: 96 4Q: 180 1Q: 607 1,253 Managed 2,866 2, ,000 8,108 Total 3,436 2, ,007 9,961 1Q '17 2Q '17 3Q '17 4Q' 17 1Q '18 Operational Keys Pending Keys Section 1: Financial Performance Note: All figures above are based on management accounts which haven t been subject to eliminations and adjustments 7

8 HOSPITALITY SEGMENT - OWNED HOTELS REVENUE BREAKDOWN (THB mn) GROSS OPERATING PROFIT (THB mn) & MARGIN (%) 999 1, Q '17 2Q '17 3Q '17 4Q '17 1Q '18 Room F&B Others HOTEL PERFORMANCE METRICS (THB) % 37.6% 38.9% 36.6% 35.9% Q '17 2Q '17 3Q '17 4Q '17 1Q '18 KEY FACTORS GOP GOP Margin 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 5, % 4, % 73.3% 4, % 60.1% 3,500 3,000 3,385 2,500 2,674 2,718 2,786 2,000 2,672 1,500 2,736 1,000 1,901 1, ,846 1,606-1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 ADR RevPAR Occupancy Section 1: Financial Performance - Hospitality 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 19 freehold/financial lease hotels under Vienna House (VH) 1Q performance of VH hotels affected by low seasonality due to Easter Effect, Air Berlin & FlyNiki insolvency affecting flights within Central Europe Solid operating improvement in our Thai hotels driven by both room and F&B revenue growth Acquisition of 1 freehold hotel under Vienna House (VHE Bratislava) and 1 freehold hotel (U Inchantree Kanchanaburi) from EBT of UE Note: All figures above are based on management accounts which haven t been subject to eliminations and adjustments. Owned hotels include freehold & financial lease hotels 8

9 HOSPITALITY SEGMENT - LEASED HOTELS REVENUE BREAKDOWN (THB mn) Q '17 2Q '17 3Q '17 4Q '17 1Q' 18 Room F&B Others HOTEL PERFORMANCE METRICS (THB) 5, % 83.4% 90% 4, % 80% 4, % 3,500 70% 3,000 60% 2,500 2,000 50% 3,594 3,402 3,512 1,500 2,989 3,298 2,837 40% 2,576 1,000 2,182 30% % 1Q '17 2Q '17 3Q '17 4Q '17 1Q' 18 ADR RevPAR Occupancy Section 1: Financial Performance - Hospitality GROSS OPERATING PROFIT (THB mn) & MARGIN (%) (20) KEY FACTORS 4 operating lease hotels under Vienna House (VH) 1Q performance of VH hotels affected by low seasonality due to Easter Effect, Air Berlin & FlyNiki insolvency affecting flights within Central Europe 2 leasehold hotels (U Sathorn and U Chiang Mai) acquired from EBT of UE 39.5% % 37.3% % 1Q '17 2Q '17 3Q '17 4Q '17 1Q' 18 GOP GOP Margin % 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Note: All figures above are based on management accounts which haven t been subject to eliminations and adjustments. Owned hotels include freehold & financial lease hotels 9

10 HOSPITALITY SEGMENT - MANAGED HOTELS REVENUE BREAKDOWN (THB mn) Q '17 2Q '17 3Q '17 4Q ' 17 1Q ' OPERATING EBITDA (THB mn) & MARGIN (%) 6.0% % % % 1Q '17 2Q '17 3Q '17 4Q '17 1Q ' % 20.0% 15.0% 10.0% 5.0% 0.0% Management Fee Technical Services Others HOTEL PERFORMANCE METRICS (THB) 5,000 4, % 76.8% 73.0% 4, % 3,500 3,000 2,500 2,000 3,692 1,500 3,245 3,194 2,835 2,506 2,767 1,000 2,331 1, Q '17 2Q '17 3Q '17 4Q '17 1Q '18 ADR RevPAR Occupancy Section 1: Financial Performance - Hospitality 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% KEY FACTORS Operating EBITDA Lower management fee income from 1Q performance of VH hotels affected by low seasonality due to Easter Effect, Air Berlin & FlyNiki insolvency affecting flights within Central Europe and no incentive fees paid (typically at year end) Operating EBITDA Margin Lower EBITDA margin due to increased business expansion Note: All figures above are based on management accounts which haven t been subject to eliminations and adjustments. Owned hotels include freehold & financial lease hotels 10

11 OFFICE SEGMENT OVERVIEW REVENUE BREAKDOWN BY BUILDING (THB mn) EBITDA (THB mn) & MARGIN (%) Q '17 2Q '17 3Q '17 4Q '17 1Q ' % 72% 76% % 6 62% 1Q '17 2Q '17 3Q '17 4Q '17 1Q ' % 50% 0% -50% -100% -150% -200% Gracechurch Underwood TST Tower EBITDA EBITDA Margin NET FLOOR AREA (NFA) & BLENDED OCCUPANCY RATE 40,000 (Unit: Sqm) 100% 100% 100% 100% 100% 35,000 30,000 25, % 100% 80% UNDER RENOVATION 20,000 16,115 60% 15,000 10,000 5,000-2,731 2,731 2,731 2,731 8,923 8,923 8,923 8,923 8,923 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 40% 20% 0% UNDERWOOD STREET TST TOWER Gracechurch Underwood TST Tower Occupancy Section 1: Financial Performance - Office 11

12 RESIDENTIAL SEGMENT OVERVIEW - BTS-SANSIRI JV Project Name Presale Project Value (THB mn) Units Avg. Price per sqm (THB) (Unit: THB mn) Sold Construction Progress* Est. Transfer Start Foreign Participation 1 The LINE Jatujak Mochit May-15 5, k 91% 100% Sep-17 36% 2 The LINE Sukhumvit 71 Aug-15 1, k 100% 100% Sep-16 48% 3 The LINE Ratchathewi Oct-15 3, k 97% 92% May-18 23% 4 The LINE Asoke-Ratchada Jun-16 3, k 99% 49% Oct-18 43% 5 The BASE Garden Rama 9 Sep-16 2, k 91% 62% Oct-18 42% 6 The LINE Pradipat Nov-16 5, k 67% 4% Jan-20 14% 7 The LINE Sukhumvit 101 Nov-16 4, k 62% 10% Nov-19 44% 8 KHUN BY YOO Thonglor 12 Nov-16 4, k 65% 11% Nov-19 5% 9 The BASE Phetkasem 29 Jun-17 2, k 74% 7% Jan-20 28% 10 The MONUMENT THONGLOR Sep-17 6, k 20% 34% Jul-19 3% 11 The LINE Sathorn Nov-17 3, k 100% 0% Apr-21 39% 12 The LINE Wongsawang Mar-18 4,871 1, k 26% 100% Mar-18 7% Total/Weighted Average 47,834 6, k 68% 24% Fully transferred Data as of April 2018 The LINE Sukhumvit 71 JV with Sansiri Presales Backlog 25,948 9,473 3,842 7,083 5, BTS-SIRI JV Presales Backlog *Backlog as of May 2018 Section 1: Financial Performance Residential 12

13 BALANCE SHEET & CASH FLOW ASSETS BREAKDOWN (THB mn) LIABILITIES & EQUITY BREAKDOWN (THB mn) (Unit: THB mn) 40,052 4, % 56,866 9, % (Unit: THB mn) 40,052 2, % 56,866 3,159 24, % 42.6% 35, % 47, % 19,717 17, % 44.4% 29, % 31 Dec Mar 18 Non-Current Assets Current Assets CASH FLOW (THB mn) 31 Dec Mar 18 Equity Non-Current Liabilities Current Liabilities CAPEX & PROPERTY INVESTMENTS (THB mn) (Unit: THB mn) 5, ,065 (Unit: THB mn) 1,383 Beginning Cash 31 Dec 17 (5,659) 353 (1,535) CFO CFI CFF Others Ending Cash 31 Mar 18 4, ,508 1Q Q 2018 * Others includes translation adjustment and cash & cash equivalents of subsidiaries at acquisition and selling date Section 1: Financial Performance Investments CAPEX 13

14 CONTENTS Section 1 Financial Performance Section 2 Business Updates Section 3 Appendix 14

15 BUSINESS UPDATES ACQUISITION OF A HOTEL IN BRATISLAVA, SLOVAKIA Conveniently located to Bratislava International Airport and a major motorway, the hotel is managed under Vienna House Easy brand (3-star). The hotel is also centrally located between other major destinations such as Vienna, Prague and Budapest Bratislava International Airport 1.5 km from M.R Stefanik Airport 11 km from Main Train Station Hotel Details 11 km from Bratislava City Centre 12 km from the Convention Centre Bratislava City Centre Location Asset Specifications History Near Bratislava International Airport and has a direct connection to the motorway Freehold land (14,971 sqm) 176 keys First operated in June 2009 and was formerly managed by Vienna House for a third-party owner Transaction Date 19 April 2018 Acquisition Cost EUR 8.9mn (THB 346.6mn) Cost/Key EUR 50,500/key (THB1,966,600/key) Section 2: Business Updates 15

16 BUSINESS UPDATES U CITY CAPITAL RAISING OF THB 11.9BN FROM PRIVATE PLACEMENT AND RIGHT OFFERINGS 1) Private Placement (PP) of preferred shares and warrants to Bangkok Bank (Strategic Investor) THB 900mn 2a) Rights Offering of preferred shares and warrants RO to all shareholders 2b) PP of preferred shares to UE THB 11bn Source of Capital Increase THB 11.9bn Capital Raising (of which THB 9.7bn is cash) Use of Capital 1) Debt Novation: Repaid loans to UE (from EBT) **Remaining debt payment to UE: THB 5.024bn. THB 5.05bn 2) Working Capital: Used for company s operations THB 4.65bn 3) PP of preferred shares to UE: THB 2.17bn Section 2: Business Updates 16

17 BUSINESS UPDATES PROGRESS OF ASSETS TO BE DISPOSED ASSETS TYPE AGREED PRICE (THB MN) AVANI KHON KHAEN HOTEL ANANTARA CHIANG MAI HOTEL 240.0* ANANTARA SERVICED SUITES SERVICED APARTMENT KORAT LAND CHARANSANITWONG LAND CHONBURI LAND 7.0 PARK RAMINDRA CONDOMINIUM PARK ARAN BOULEVARD COMMERCIAL TOTAL 3,001.6 * Excludes outstanding debts and interest owed that will also be acquired by the purchaser Asset Disposed in 1Q 2018 Section 2: Business Updates 17

18 BUSINESS UPDATES LETTER OF INTENT SIGNED BETWEEN VIENNA HOUSE AND NAKHEEL FOR DEIRA ISLAND On 27 April 2018, Vienna House signed a letter of intent (LOI) with Nakheel. Nakheel is Dubai s largest developer, whose track record includes the Palm Jumeirah islands. The LOI covers jointdevelopment and management of a beach-front resort with up to 620 keys (with room to expand further) under a 70:30 partnership, in which Vienna House will be a 30% stakeholder. Project Details Project Value Source of Fund EUR 133mn ( EUR 40mn for Vienna House) Combination between debt and equity financing Location Deira Island, Dubai, United Arab Emirates Concept Bohemian lifestyle, individuality and artisanal F&B concepts and mainly targeting Young-atheart travelers Hotel Brand Construction Period (tentative) Vienna House June 2019 Late 2021 Start Completion Picture Source: Construction Global Section 2: Business Updates 18

19 BUSINESS UPDATES ADDITIONAL TARGETED DESTINATIONS THAT VIENNA HOUSE IS CURRENTLY IN NEGOTIATIONS TO EXPAND TO 10 New Destinations VIENNA GLIWICE DÜSSELDORF HAVANNA COPENHAGEN DUBAI MUNICH HAMBURG RIGA BUDAPEST Section 2: Business Updates 19

20 CONTENTS Section 1 Financial Performance Section 2 Business Updates Section 3 Appendix 20

21 GUIDANCE FY 2018 Total Revenue % YoY THB 6,000-6,700mn Hospitality Revenue % YoY THB 5,800-6,300mn Office Revenue % YoY THB mn EBITDA Margin 25% Section 3: Appendix 21