Emperor Entertainment Hotel Limited · HKEX:296
Emperor Entertainment Hotel — FY2004/05 Earnings Presentation
20 slides from Emperor Entertainment Hotel's earnings presentation, Jul 11, 2005
Slide 1: Emperor Entertainment Hotel Limited 2004/05 Annual Results
Emperor Entertainment Hotel Limited (Stock code: 296) 2004/05 Annual Results Investor Presentation July 11 2005
Slide 2: Mission
Mission To become the leading gaming and entertainment operator in Greater China region Macau Casino Hotel: Shanghai Retail & Casino Cruise Liner: Hotel Complex : Golden Princess Emperor Casino Hotel Star City Currently in operation To be launched by To be completed the end of 2005 in early 2007 Eye
Slide 3: Financial Highlights
Financial Highlights (HK$’000) Turnover Contribution Turnover 05 04 05 04 18,236 0 - - Golden Princess 18,236 0 6,071 0 Casino Projects 0 0 (956) 0 Property Projects 0 0 17,221 102,993 Corporate Expenses (5,175) (702) Minority Interest 435 (8,968) Net Profit 17,596 86,382 EPS 4.8 cents 7.5 cents 2
Slide 4: Key Financial Figures
Key Financial Figures As at March 31 2005 Total no of issued shares 928,771,980 Net asset value HK$ 1,057,030,000 NAV per share HK$1.138 • Targets to Maintain in future a dividend policy with a yearly dividend payout ratio of not less than 50% 3
Slide 5: Business Review & Prospects
Business Review & Prospects 4
Slide 6: I. Casino Cruise Liner - Golden Princess
I. Casino Cruise Liner - Golden Princess • Acquired in February 2005 at a consideration of approximately HK$132.6 million • Give immediate revenue to EEH with turnover reached HK$18.24 million and net profit of HK$6.07 million Business Model • Lease out Casino to a casino operation syndicate at - Mo
Slide 7: II. Emperor Casino Hotel – Shareholding Structure
II.Emperor Casino Hotel – Shareholding Structure 3.44% Emperor Group Mr. Jackie EEH SJM Other Investors (private) Chan 45% 5% 5% 20% 25% Licence Project Company • EEH holds operation control over the project • Relationship with SJM - 3.44% in EEH - 20% in Project company - Casino operation under SJM
Slide 8: Emperor Casino Hotel
Emperor Casino Hotel EEH: 45% interest in the project Estimated investment: HK$450 million Estimated payback period: 3 years Business expected to commence: - Soft opening by September 2005 - Grand opening by end of 2005 7
Slide 9: Business Model
Business Model A. Casino Concourse z 65 gaming tables z Provide concourse rent free to SJM in return for 40% gross win sharing B. VIP Halls Self operate & Leased out Contribution from VIP Halls operation: z Gross win income z Rental income z Commitment in hotel rooms z Commitment in F&B spendings an
Slide 10: Business Model
Business Model C. Hotel Rooms Type No. of rooms Premier Suite 21 Suite 8 Standard to Deluxe Rooms 259 D. Other Facilities Self Operate Competitive Edge High End Chinese Restaurant & Café Supported by VIP Halls Commitment Lease Out Night Club – Leased Provide stable rental income Sauna – Leased Retai
Slide 11: Emperor Casino Hotel - Floor Plan
Emperor Casino Hotel - Floor Plan 23/F Hotel About 300 rooms 11/F 10/F Sauna 9/F Restaurants 65,000 sq ft 8/F Night Club 7/F Hotel & Casino administration office 6/F VIP Hall 5/F 4/F 3/F Casino Concourse 65 gaming tables 2/F 1/F 207 slot machines + 331 seats G/F Lobby 4 shops (total 3,000 sq ft) 10
Slide 12: Facilities – Hotel Rooms
Facilities – Hotel Rooms 11
Slide 13: Facilities - Slot machines
Facilities- Slot machines 12
Slide 14: Investor Concerns
Investor Concerns 1. Market positioning? - Targeting mid-high rollers from China with our boutique hotel - Experienced in mid-high roller market - Membership system to build customer loyalty - Focused on niche market, different from western resorts focusing on mass market 2. Increase in gaming table
Slide 15: Investor Concerns
Investor Concerns 3. Strong Brand-name? - Nearly 10 years of experience in running VIP halls in Casino Lisboa - Strong name across China 4. Marketing knowledge? - Backed up by Emperor Entertainment Group 5. Suitable Location - In city centre - 5 mins from Casino Lisboa 6. Corporate Governance? - pro
Slide 16: III. Shanghai Star City
III. Shanghai Star City • Joint Venture Development - To be completed in February 2007 - EEH contributes land - JV partner fully contributes construction cost at about HK$500 million - 50:50 interest sharing • Limited Risk - EEH has a put option of HK$530 million on 50% interest of Star City exercis
Slide 17: Shanghai Star City
Shanghai Star City • Prime location in Shanghai - Total site area - 22,870 sq. meter - Gross area - around 114,000 sq. meter - Retail and Hotel Complex - Subway entrance channeled into complex basement • No Cash Commitment / No Gearing • Risk fully covered by put option • Capitalise on the upward tr
Slide 18: Q&A Section
Q&A Section 17
Slide 19: APPENDIX I: Emperor - Corporate Structure
APPENDIX I: Emperor- Corporate Structure Emperor International Emperor Entertainment Holdings Limited Group Limited EIHL(0163)* (ADR Symbol: EPRRY) EEG(8078)* 33.85% Emperor Entertainment Hotel Limited EEH(0296)* (ADR Symbol: EPCHY) - Artistes Management - Mainly Properties - Musical Records Product
Slide 20: APPENDIX II: EEH Shareholding Structure
APPENDIX II: EEH Shareholding Structure Emperor International Holdings Limited SJM Public (ADR Symbol: EPRRY) EIHL(0163)* 33.97% 3.44% 62.71% Emperor Entertainment Hotel Limited EEH (0296)* (ADR Symbol: EPCHY) Golden Princess Macau Casino Hotel Shanghai Star City * Listed on HKEX Level 1 ADR sponsor
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