U CITY PCL FY 2017 EARNINGS PRESENTATION

Transcription

1 FY 217 EARNINGS PRESENTATION 21 FEBRUARY 218

2 IR CONTACT Address: U City Public Company Limited IR Department 2 th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand 19 Telephone: +66() #231 Fax: +66() 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 forwardlooking 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 Guidance FY 218 3

4 KEY HIGHLIGHTS FY 217 Total Revenue THB 4,453mn % YoY Recurring NPAT** THB (127)mn vs THB (23mn) in 216 Operating EBITDA* THB 567mn vs THB (3mn) in 216 Total Asset THB 4.1bn +59.3% YoY Details Consolidation of Vienna House from 1 June 217 (7 months) Improving operating performance of our hotels in Thailand (revenue +9.1% YoY) Full-year contribution of 33 Gracechurch Street office building (revenue % YoY) Gain on disposal of subsidiaries: Natural Project Chaopraya & Natural Hotel Chaopraya of THB 114mn and Prime Area 38 of THB 7mn (now a JV company) *Includes share of profit/loss from investments in associates and JV ** Excludes impairment charge and non-recurring transaction-related expenses 4

5 FINANCIAL PERFORMANCE OVERVIEW PROFIT & LOSS STATEMENT THB mn FY 217 FY 216 % YoY 4Q 217 4Q 216 % YoY 3Q 217 % QoQ Total Revenue 4,453 1, % 1, % 1, % Operating Revenue 4,3 1, % 1, % 1, % Gross Operating Profit (GOP) 2, % % % SG&A 1, % % % Share of Profit (1) (9) N.A. (4) (1) N.A. 1 N.A. Operating EBITDA* 567 (37) N.A. 268 (46) N.A. 281 N.A. Finance Costs % % 255 (24.3)% Net Profit (1,49) (315) 233.% 1 (145) N.A. (98) N.A. Recurring Net Profit** (127) (315) N.A. 18 (145) N.A. (91) N.A. GOP Margin 63.6% 66.4% 62.5% 78.3% 64.3% EBITDA Margin 4.7% 3.2% 24.3% 17.4% 22.2% Operating EBITDA Margin* 12.7% (3.4)% 17.1% (13.9)% 12.1% Net Profit Margin (23.6)% (27.)% N.A. (4.8)% (37.8)% Recurring Net Profit Margin** (2.9)% (27.)% 1.1% (4.8)% (8.4)% REVENUE CONTRIBUTION *Includes share of profit/loss from investments in associates and JV ** Excludes impairment charge and non-recurring transaction-related expenses REVENUE GROWTH CONTRIBUTION Others THB 423mn 9.5% Office THB 162mn THB 4,453mn Hospitality THB 3,868mn 86.9% (THB mn) 276.6% 2, % % 348 4, % 1,165 Section 1: Financial Performance FY 216 Hospitality Office Others FY 217 5

6 HOSPITALITY SEGMENT OVERVIEW BREAKDOWN OF REVENUE BY TYPE & SOURCE (THB mn) OPERATING EBITDA (THB mn) & MARGIN (%) ,52 1,616 1.% 1.% 1.% 1.% 1.% 7.% 1.3% 12.1% 21.3% 24.4% 25.4% 36.5% 18.5% 2.7% 1.% 1.% 1.% 1.% 1.% 71.7% 65.3% 62.4% 1Q 216 2Q 216 3Q 216 4Q 216 1Q 217 2Q 217 3Q 217 4Q % 31.5% 3.5% 28.7% 24.5% 24.2% 19.3% 15.1% % 3.% 25.% 2.% 15.% 1.% 5.%.% Owned Leased Managed % Thai Sourced Revenue UPCOMING KEYS PIPELINE Operating EBITDA UPCOMING KEYS TIMELINE Operating EBITDA margin 7, ,478 8,437 1,415 1,415 Type Total Owned 7,83 7,63 7,22 Leased 2Q: 26 3Q: 164 1Q: 96 3Q: 162 4Q: 18 1Q: 67 1, Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q' 17 Operational Keys Upcoming Keys Section 1: Financial Performance Managed Total ,415 Note: Figures above are based on management accounts which haven t been subject to eliminations and adjustments 6

7 HOSPITALITY SEGMENT - OWNED HOTELS REVENUE BREAKDOWN (THB mn) GROSS OPERATING PROFIT (THB mn) & MARGIN (%) 992 1, % % 36.% 37.6% 38.9% 36.6% 31.8% % % 45.% 4.% 35.% 3.% 25.% 2.% 15.% 1.% 5.%.% Room F&B Others HOTEL PERFORMANCE METRICS (THB) KEY FACTORS GOP GOP Margin 5, 81.9% 79.4% 8.8% 4,5 75.1% 75.6% 4, 71.1% 73.3% 3,5 66.3% 3, 3,392 3,31 3,385 2,5 2,681 2,732 2,674 2,718 2,786 2, 1,5 2,777 2,13 2,169 2,494 2,736 1, 1,91 1,992 1,846 5 ADR RevPAR Occupancy Section 1: Financial Performance - Hospitality 85.% 8.% 75.% 7.% 65.% 6.% 55.% 5.% 45.% 4.% Consolidation of 18 freehold/financial lease hotels under Vienna House (VH) since 1 June 217 4Q performance of VH hotels from higher F&B revenue seasonality being partially offset by conversely lower room revenue seasonality, payments of bonuses and other non-accrued expenses Solid operating improvement in our Thai hotels driven by both room and F&B revenue growth Note: Figures above are based on management accounts which haven t been subject to eliminations and adjustments. Owned hotels include freehold & financial lease hotels 7

8 HOSPITALITY SEGMENT - LEASED HOTELS REVENUE BREAKDOWN (THB mn) Room F&B Others HOTEL PERFORMANCE METRICS (THB) GROSS OPERATING PROFIT (THB mn) & MARGIN (%) % 39.5% 36.7% 37.3% 4.% % 3.% % 8. 2.% % % 5.% (2.).% GOP GOP Margin KEY FACTORS % 83.4% 3,594 3,42 3,512 2,989 2,837 2,576 ADR RevPAR Occupancy Section 1: Financial Performance - Hospitality 73.3% 9% 85% 8% 75% 7% 65% 6% 55% 5% Consolidation of 4 operating lease hotels under Vienna House (VH) since 1 June 217 4Q performance of VH hotels from higher F&B revenue seasonality being partially offset by conversely lower room revenue seasonality, payments of bonuses and other non-accrued expenses Note: Figures above are based on management accounts which haven t been subject to eliminations and adjustments 8

9 HOSPITALITY SEGMENT - MANAGED HOTELS REVENUE BREAKDOWN (THB mn) OPERATING EBITDA (THB mn) & MARGIN (%) Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q ' % 18.4% 42 6.% Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q ' Management Fee Technical Services Others HOTEL PERFORMANCE METRICS (THB) KEY FACTORS Operating EBITDA Operating EBITDA Margin 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 77.5% 76.9% 72.3% 3,532 3,118 3,75 2,415 2,716 2,224 5 ADR RevPAR Occupancy Section 1: Financial Performance - Hospitality 9.% 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% Consolidation of VH hotel management platform since 1 June 217, which manages in addition to our owned and leased hotels, 12 other third-party hotels 4Q management fee growth mainly from the improving YoY operating performance of hotels and payment of incentive fees, which are typically paid during this period Note: Figures above are based on management accounts which haven t been subject to eliminations and adjustments 9

10 OFFICE SEGMENT OVERVIEW REVENUE BREAKDOWN BY BUILDING (THB mn) EBITDA (THB mn) & MARGIN (%) % 71.5% 75.6% % 14.3% TOTAL NET FLOOR AREA (SQM) AND OCCUPANCY 43 2 Rental Income Gracechurch Rental Income Underwood % EBITDA EBITDA Margin % 1% 1% 1% 1% 1% 2,731 2,731 2,731 2,731 2,731 2,731 9,71 9,71 9,71 9,71 9,71 9,71 Gracechurch NFA Underwood NFA Occupancy Section 1: Financial Performance - Office 1

11 BALANCE SHEET & CASH FLOW ASSETS BREAKDOWN (THB mn) LIABILITIES & EQUITY BREAKDOWN (THB mn) 4,52 4, % 4,52 2, % 25,149 4, % 35, % 25,149 3,918 2, % 9.4% 19, % 2, % 18,856 17, % 44.4% 31 Dec Dec 17 Non-Current Assets Current Assets CASH FLOW (THB mn) 31 Dec Dec 17 Shareholders' Equity Non-Current Liabilities Current Liabilities CAPEX & PROPERTY INVESTMENTS (THB mn) (5,659) 6, ,383 4,95 1, % 6, , % 92.6% 3, % Beginning Cash 31 Dec 16 Section 1: Financial Performance CFO CFI CFF Others* Ending Cash 31 Dec 17 * Includes translation adjustment and cash & cash equivalents of subsidiaries at acquisition and selling date 12M M 217 Investments CAPEX 11

12 CONTENTS Section 1 Financial Performance Section 2 Business Updates Section 3 Guidance FY

13 BUSINESS UPDATES SHAREHOLDERS APPROVE OF CAPITAL INCREASE, ENTIRE BUSINESS TRANSFER (EBT) AND ASSET DISPOSAL At the EGM held at Thana City on 4 January 218, shareholders approved all agendas including the capital increase Entire business transfer of Unicorn Enterprises Limited Disposal of certain assets. KEY UPCOMING DATES UE Entire Business Transfer (EBT) U City Capital Increase U City Asset Divestment 5 9 Mar 218 RO subscription period 16 Mar 218 EBT completion date 16 Mar 218 EBT completion date 16 Mar 218 PP & RO warrants issuance date Preferred shares start trading on SET To be completed within end 218 Execute asset divestment 13

14 BUSINESS UPDATES A FURTHER 1,415 SIGNED KEYS TO BE OPERATIONAL BY 221 LEIPZIG 26 KEYS KRONBERG 96 KEYS WARSAW 164 KEYS VADUZ 162 KEYS MUNICH 67 KEYS RAUNHEIM (FRANKFURT) 18 KEYS 14

15 BUSINESS UPDATES ADDITIONAL DESTINATIONS THAT VIENNA HOUSE IS CURRENTLY IN NEGOTIATIONS TO POTENTIALLY EXPAND TO 13 New Operating Lease Hotels 2,521 Additional Keys 1 New Destinations VIENNA GLIWICE DÜSSELDORF HAVANNA COPENHAGEN DUBAI HAMBURG RIGA BUDAPEST 15

16 CONTENTS Section 1 Financial Performance Section 2 Business Updates Section 3 Guidance FY

17 GUIDANCE FY 218 Total Revenue +35-5% THB 6, - 6,7mn Hospitality Revenue +5-63% THB 5,8-6,3mn Office Revenue % THB 2-27mn EBITDA Margin 25% 17