Shangri-la Asia Limited · HKEX:69
Shangri-la Asia — 1H 2024 Earnings Presentation
24 slides from Shangri-la Asia's earnings presentation, August 2024
Slide 1: Shangri-La Asia Ltd 2024 Interim Results
Shangri-La Asia Ltd 2024 Interim Results Aug 2024 JEN Hotel, Kunming1
Slide 2: Agenda
Agenda ▪ 1H24 Results Highlights ▪ 1H24 Operating Cashflow and Free Cashflow ▪ FY24 Prospect ▪ Appendix: ▪ Financials on effective basis ▪ Project Under Development Ba Fun Hui, Fuzhou2
Slide 3: 1H24 Key Highlights
1H24 Consol Revenue +4.3% YoY; Free Cashflow turnaround for first time in 5 years since 2019; 1st interim dividend in 5 years Consol Basis 1H24 Key Highlights Group Occupancy Group RevPAR 61.4% US$103.7 +1.1pp YoY +0.7% YoY Revenue EBITDA US$1.05B US$252M +4.3% YoY -5.1% YoY EBITDA Margin Operating
Slide 4: 1H24 Group Consol EBITDA Margin at 24.1%
1H24 Group Consol EBITDA Margin at 24.1%, at healthy level despite market headwinds. Consol Basis 1H24 Key Highlights Revenue (USD’M) EBITDA (USD’M) Group EBITDA Margin FY23 Margin: 24.4% 1,136 26.4% 26.4% 8 1,049 24.4% 24.1% 1,006 56 8 24.0% Group Total 4 60 266 256 52 252 Property Sales & 2 0 0 22
Slide 5: Segment EBITDA margin maintained above 1H19 level
Group total (excl. Resi), Hotel & IP margin maintained above 1H19 level, despite revenue not fully recovered, as cost measures initiated during COVID bearing fruits. Consol Basis 1H24 consolidated Hotel operation EBITDA margin +0.3pp vs 1H19 1H19 vs 1H24 Segment EBITDA Margin 1H19 1H23 1H24 Margin M
Slide 6: Expanding Footprint for future growth
Expanding Footprint for future growth Apr 2024 Apr 2024 JEN Kunming opened in Apr 2024, our first hotel in Kunming and Shangri-La Fuzhou’s new IP (Ba Fun Hui) opened in Fuzhou, a showcase of our dual-brand model. marking the completion of the development that will provide an Shangri-La Kunming to op
Slide 7: Asset-Liability Matching update: RMB loan 46% of total loan
Asset-Liability Matching update: RMB loan 46% of total loan Interest rate Management: eff interest rate lower than 2H23 Gross debt increased as more RMB loan drawdown However, Net Debt remained stable Gross Debt Split by Currency (US$’bn) Gross and Net Debt 1H24 vs YE23 (US$’M) Non-RMB RMB 6,654 1,9
Slide 8: Healthy Financial Position
Healthy Financial Position Key Highlight Debt Portfolio as of 30 June, 2024 1. FY24 refinancing need completed Interest Rate 6,654 Weighted Debt Maturity: 3.64 years 7,000 2. Ample resources to cover 24mth Hedge Ratio USDmn (3.48 @ Dec 23) refinancing need, comprising 6,000 $1,916mn Cash & $551mn 5,
Slide 9: 1H24 Operating Cashflow & Free Cashflow
1H24 Operating Cashflow & Free Cashflow 9
Slide 10: Operating cashflow 1H24 at US$60M
Operating cashflow 1H24 at US$60M 40 31 7 1,916 Operating cashflow US$60M 949 -12 170 44 968 -24 -104 -27 -51 -70 -5 Utilization of cash Source of cash US$126M US$1,026M Cash at Net cash Lease related Cash Net interest Tax CAPEX Dividend Share purchase Net change Net change New S/H loan Net cash fro
Slide 11: 1H24 Free Cash Flow turned positive at US$46M
1H24 Free Cash Flow turned positive @US$46M vs -US$15M in 1H23 Free Cash Flow* (US$ million) 300 245 200 145 100 46 4 0 -15 -100 -83 -200 -162 -300 -400 -435 -500 2018 2019 2020 2021 2022 2023 1H23 1H24 *Free Cash Flow = Operating Cashflow – CAPEX + New S/H loan repaid from associates + Net cash fro
Slide 12: 2024 Prospects
{EN 2024 Prospects KUNMING Be AA
Slide 13: Broad Market: Per capita spending still below 2019 level
Broad Market: Per capita spending still below 2019 level, moderated in 2Q although tourist number above 2019 level. Recovery % vs 2019: Tourist Number, Revenue, Per Capita Spend Tourists No. Tourism Rev Per Capita Spend 140% 128.2% 119.1% 119.0% 119.9% 120% 112.8% 111.5% 109.4% 103.2% 104.1% 98.7% 1
Slide 14: SA 1H24 RGI Index
SA RevPAR index beat CompSet (>100) in first half of 2024 1H24 SA RGI Index 100+ in key markets SA 1H24 RGI Index 110 107.3 Index Score >100 102.3 103.5 103.9 103.9 means 105 outperformance 100 95 90 85.3 85 80 75 70 65 60 SA Group China HK SG SEAA MEIA Source: STR (portfolio-weighed RGI) for SA’s s
Slide 15: Monthly Occupancy by Region
Monthly Occupancy: SA hotels’ Aug-21 MTD Occ% jumped to 74.9%, as summer travel season benefits most regions. Monthly Occ% by Region: Aug-21 MTD Group Occ% at 74.9% MONTHLY OCCUPANCY % BY REGION (no HMA) Group China SEAA MEIA Hong Kong Singapore 100% 90% Hong Kong, 90.1% Singapore, 85.9% 80% China,
Slide 16: 2024 Prospects
2024 Prospects: 1. Continue driving leisure demand while staying nimble in view of macro challenges ▪ 1Q24 recorded strong growth YoY on a low base while 2Q24 saw a more normalized growth rate ▪ Continue to capture China leisure consumption trend with selective investments to drive sustainable growt
Slide 17: Appendix: Financials on effective basis
Appendix: Financials on effective basis
Slide 18: 1H24 Key Highlights (Effective Basis)
1H24 Eff. Revenue +3.7% YoY; Free Cashflow turnaround for first time in 5 years since 2019; 1st interim dividend in 5 years Numbers on eff. Basis Effective Share basis 1H24 Key Highlights Group Occupancy Group RevPAR 61.4% US$103.7 +1.1pp YoY +0.7% YoY Effective Share of Revenue Effective Share of E
Slide 19: 1H24 Group Eff. EBITDA Margin at 30.0%
1H24 Group Eff. EBITDA Margin at 30.0%, at healthy level despite market headwinds. Effective Basis 1H24 Key Highlights Eff. Revenue (US$’M) Eff. EBITDA (US$’M) Group Eff. EBITDA Margin FY23 Margin: 31.5% 1,542 32.3% 31.1% 30.9% 195 477 29.7% Group Total 1,272 1,227 212 18 30.0% Property Sales & 8 39
Slide 20: Segment Eff. EBITDA Margin vs 1H19
Group total (excl. Resi) and Hotel Operations margin maintained above 1H19 level, despite revenue not fully recovered, as cost efficiency initiated during COVID bearing fruits. Effective Basis 1H24 eff share Hotel operation Eff EBITDA margin +0.3pp vs 1H19 1H19 vs 1H24 Segment Eff. EBITDA Margin 1H1
Slide 21: Appendix: Projects Under Development
Appendix: Projects Under Development
Slide 22: Owned Hotels Under Development
Owned Hotels Under Development Group’s Equity Projected Property Name (# Keys) Interest Opening Kyoto Associates Hongqiao Airport Zhengzhou Shangri-La Hotel, Kyoto (77) 20% Q4 2026 Hangzhou Shangri-La Hotel Hangzhou East 45% Q1 2025 Wing (68) Kunming Operating Lease Agreement Shangri-La Hotel, Hongq
Slide 23: Managed Hotels Under Development
Managed Hotels Under Development No. of Projected Beijing Property Name Keys Opening Shangri-La Hotel, Phnom Penh 303 TBD Hangzhou Shangri-La Hotel, Melbourne 487 TBD JEN Hangzhou by Shangri-La, Hangzhou 237 Q4 2025 Shangri-La Hotel, Bahrain 245 TBD Phnom Penh Shangri-La Hotel, Shougang Park (Phase
Slide 24: Composite Projects Under Development
Composite Projects Under Development Shenyang Joint Ventures with Kerry Properties Limited Tianjin Shenyang Kerry Centre (Phase III) Kunming City Project* Zhengzhou • Equity interest: 25% • Equity interest: 45% • Phase III: Residential superstructure under • Component: Hotel & Apartment construction