Golden Resorts Group Limited. Corporate Presentation May 2011

Transcription

1 Golden Resorts Group Limited Corporate Presentation May 2011

2 Contents Executive Summary Overview of Macau Gaming Industry Company Overview Financial Highlights 2

3 Executive Summary 3

4 Golden Resorts Group Casa Real Hotel The Pre-eminent Gaming, Hotel and Entertainment Operator in Macau Subsidiary of Kingston Financial Group Limited Strategically diversified into the Macau gaming market by acquiring two casino hotels in 2005 Grandview Hotel Turnover of HK$541 million in Net cash inflow HK$190 million from operating activities in 2010 Casa Real and Grandview Hotels have approximately 670 staff, 806 guest rooms, 73 gaming tables in 2 mass market gaming halls and 2 VIP rooms and 186 slot machines 4

5 Overview of Macau Gaming Industry 5

6 Macau A World Class Gaming Destination Only city in China where casino operation is legal Market established for over 40 years Best demographics for any gaming market One billion people within a 3-hour plane flight Affirming Macau as Asia s Las Vegas Currently 34 casinos with more to be completed in the coming years Macau Gaming Revenue (MOP$ billion) Source: Macau Statistics and Census Service 6

7 Gaming Revenue Mix Macau 2010 Gaming Revenue: MOP$189.6 billion Las Vegas Strip 2010 Gaming Revenue: MOP$46.4 billion Black Jack 1% 18% 13% Black Jack VIP Room Baccarat 4% Other games 5% Slot machines 48% Slot machines Baccarat 20% 72% (Baccarat) Other games 19% VIP Baccarat focused gaming market There is a trend of increasing revenue from Slot machines in Macau Slot machines focused gaming market Source: Gaming Inspection and Coordination Bureau Source: NEVADA Gaming Commission and State Gaming Control Board 7

8 Macau Gaming Revenue Mix Macau Gaming Revenue Mix Gaming Revenue (MOP$ million) 200, , , , , , , , , , ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Mass market gaming has had a CAGR of 25% since ,134 57,521 83,847 66% 109,826 67% 120,383 66% 189,588 71% 64% 62% 28% 33% 32% 33% 36% 34% 2% 2% 1% 1% 1% 1% Other Gaming Revenue Mass Market Gaming VIP Gaming Note: Other gaming revenue includes non fortune based gaming Source: Gaming Inspection and Coordination Bureau 8

9 Existing Casino Operators in Macau SJM Concession 1. Casa Real 2. Casino Babylon 3. Casino Diamond 4. Casino Taipa 5. Emperor Palace 6. Fortuna 7. Golden Dragon 8. Grandview 9. Grand Lisboa 10. Greek Mythology 11. Jimei 12. Kam Pek 13. Lan Kwai Fong 14. Legend Club 15. Lisboa 16. Macau Palace 17. Marina 18. Ponte Le Royal Arc 20. Oceanus MGM Grand Paradise Sub-Concession 1. MGM Grand Galaxy Concession 1. Waldo 2. Grand Waldo 3. President 4. Rio 5. StarWorld 6. Galaxy Venetian Macau Sub-Concession 1. Plaza 2. Sands 3. Venetian Wynn Resorts Concession 1. Wynn Melco-Crown Sub-Concession 1. Altira 2. City of Dreams 3. Taipa Square Source: Gaming Inspection and Coordination Bureau 9

10 Macau Gaming Market Key Contributor Tourist Arrivals 28,000 26,000 24,000 21,998 27,003 22,908 21,753 24,965 Tourist Arrivals ('000) 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 18,711 44% 56% 44% 56% 45% 55% 47% 49% 53% 51% 47% 53% 4,000 2, Mainland China Other Source: Macau Statistics and Census Service 10

11 Overview of Macau Gaming Industry Strong Chinese Economy Per capita per trip (MOP$) 4,000 3,500 3,000 2,500 2,000 1,500 1, ,078 Per-capita spending of visitors by place of residence 1, ,215 1,610 1,085 3,080 1,637 1,109 3,571 1,729 1,159 3,040 1, , Hong Kong Mainland Overall Source: Macau Statistics and Census Service Burgeoning wealth effect of mainland clientele 1,518 Note: Data for 2010 are extrapolated from visitors spending information collected, whereas those for 2009 and before are results from sample data. No. of visitors ( 000) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,331 Mainland Visitors to Macau under Individual Visit Scheme ( 000) 5,905 7,165 6,585 4,810 5, Source: Macau Statistics and Census Service Individual Visitor Scheme (IVS) recently expanded to 49 cities. Source: Bureau of Exit and Entry of the Ministry of Public Security 11

12 Macau Gaming Market Key Growth Drivers Substantial Investments by International Players Spurring development of mega casinos / resorts attract international tourists Improved Infrastructure Confirmed HK-Zhuhai-Macau Bridge Light Rail Increased flights facilitating tourist traffic There are low cost carriers, around Asia, providing flights to Macau further solidify Macau s tourism New ferry terminal in Taipa 12

13 VIP Rooms Mass Market / Slots 13

14 VIP Room Operation Model 1. VIP room operations offer gaming services and venues to High rollers Casino Hotel Operator 2. Accounted for 71% of the Macau gaming revenue in Only baccarat (maximum table limit as high as HK$2,000,000 per hand and a minimum of HK$200,000 per hand) 4. High rollers with large bankrolls and/or credit agreements play in VIP rooms. Junket operators offer VIP players certain incentives and credit to play and will act as agents for VIP rooms to bring in more players. Net Win Sharing Room rental and management fee Concessionaire (SJM) VIP Room Operator 5. Operated by professional gaming intermediaries (GI) 6. Concessionaires (i.e. SJM) run the gaming operation while the GIs run the gaming related services in VIP rooms 7. SJM associated GIs control the biggest portion of the VIP market in Macau Junket Commission Credit Lines Junket Representatives Net Win Credit Lines Customers Source: Company data 14

15 Mass Market 1. Mass market operations provide gaming opportunities to walk-in customers Macau annual mass market gaming revenue (MOP$ million) 60,000 52, Accounted for 28% of the Macau gaming revenue in Operated by gaming concessionaires, e.g. SJM 50,000 40,000 35,000 39, Mass market cash players with no credit lines 30,000 27, No junket operators involved 20,000 17,183 19,840 10, Source: Gaming Inspection and Coordination Bureau 15

16 Company Overview 16

17 Corporate Milestones July 1996 Company s IPO listing on the Main Board of the Stock Exchange of Hong Kong March 2005 Acquisition of Grandview Hotel located on Taipa Island July 2008 Completed renovation of 10/F & 11/F in Casa Real Hotel May 2009 Grand opening of slot machine hall in Grandview Hotel April 2005 Dr. Chu Yuet Wah became shareholder and management of Golden Resorts Group May 2005 Acquisition of Casa Real Hotel located on Macau Peninsula December 2006 Opened the first VIP room in Casa Real namely Golden 28 on 15th, housing 4 gaming tables Aug 2009 Grand opening of slot machine hall in Casa Real Hotel June 2006 Disposal of watch business, allowing the Company to place strategic focus on its hotel and gaming business April 2009 Completed renovation of mass market hall in Casa Real Hotel 17

18 Experienced Management Team Mr. Nicholas Yuk Yui CHU Chairman and Non-Executive Director Over 28 years of experience in commercial property leasing and management More than 18 years of experience in corporate finance, foreign exchange, lending, securities and futures trading industries A member of Hong Kong Securities Institute and a responsible officer under the Securities and Futures Ordinance for types 1 and 2 activities Joined the Group in February 2006 Dr. Pollyanna Yuet Wah CHU Chief Executive Officer and Executive Director Has been involved in gaming entertainment related services and has profound knowledge in the development of gaming entertainment industry in Macau, as well as managing VIP room operations Controlling shareholder of the group through the Kingston Group, engaging in securities, investment banking, financing and the financial services business in Hong Kong Member of National Committee of Chinese People s Political Consultative Conference Member of Guangdong Committee of Chinese People's Political Consultative Conference Vice Chairman of The Chamber of Hong Kong Listed Companies Vice Chairman of Po Leung Kuk 10 th World Outstanding Chinese Joined the Group in April

19 Experienced Management Team (continued) Mr. Hin Shek WONG Consultant Over 18 years of experience in corporate finance transactions, including mergers and acquisitions, initial public offerings and equity syndication Joined the Group in February 2005 Mr. Wai Man LEE Consultant Has been engaging in gaming business in Macau for many years Former consultant for Caesars Palace Las Vegas (held by Caesars Entertainment, Inc. - US listed company) on credit policy to Asian VIP clients Managing Director of Gold Club (the leading VIP room operator in Macau), a syndicate founded by Mr. Lee in 1990, which carries out gaming related services 19

20 Key Asset Casa Real Hotel Location map of Casa Real Hotel Gaming concessionaires SJM MGM Grand Paradise Galaxy Venetian Macau Wynn Resorts Melco-Crown Existing Casinos 1 Casa Real 2 Casino Babylon Ponte 16 Le Royal Arc Oceanus MGM Grand Waldo Grand Waldo President Rio Macau Peninsula Casa Real Hotel Casino Diamond Casino Taipa Emperor Palace Fortuna Golden Dragon Grandview Grand Lisboa Greek Mythology Jimei Kam Pek Lan Kwai Fong Legend Club Lisboa Macau Palace Marina StarWorld Galaxy Plaza Sands Venetian Macao Wynn Macau Altira City of Dreams Taipa Square Courtesy: Gaming Inspection and Coordination Bureau Google maps 20

21 Key Asset Casa Real Hotel Casa Real Hotel 100% owned and managed by Golden Resorts Located at Avenida Do Dr Rodrigo Rodrigues, close proximity to Macau Ferry Terminal Year built: star hotel: 381 guest rooms with a gross floor area of 440,116 sq.ft. Occupancy rate at approximately 80% since acquisition Casino Total of 48,255 sq. ft. of gaming space 51 gaming tables and 92 slot machines in the mass market gaming hall and VIP Room Current Valuation HK$1.65 billion as at 31 December

22 Key Asset Grandview Hotel Location map of Grandview Hotel Gaming concessionaires SJM MGM Grand Paradise Galaxy Venetian Macau Wynn Resorts Melco-Crown Existing Casinos 1 Casa Real 2 Casino Babylon Casino Diamond Casino Taipa Emperor Palace Fortuna Golden Dragon Grandview Grand Lisboa Greek Mythology Jimei Kam Pek Lan Kwai Fong Legend Club Lisboa Macau Palace Marina Ponte 16 Le Royal Arc Oceanus MGM Grand 22 Waldo 23 Executive Summary Grand Waldo 24 President Rio StarWorld Galaxy Plaza Sands Venetian Macao Wynn Macau Altira City of Dreams Taipa Square Grandview Hotel Taipa Courtesy : Deutsche Bank Courtesy: Gaming Inspection and Coordination Bureau Google maps 22

23 Key Asset Grandview Hotel Grandview Hotel 100% owned and managed by Golden Resorts Located at Taipa of Macau, embracing the racetrack view of the Macau Jockey Club Year built: star hotel: 425 guest rooms with gross floor area of 303,176 sq. ft. Occupancy rate at approximately 75% since acquisition Casino Total of 20,697 sq. ft. of gaming space 22 gaming tables and 94 slot machines in the mass market gaming hall and VIP Room Current Valuation HK$420 million as at 31 December

24 Financial Highlights For the year ended 31 Dec

25 Revenue Model of the Gaming Business Sharing of net win from total of 73 gaming tables in 2 mass market gaming halls and 2 VIP rooms, And 186 slot machines Room rental from total of 806 guest rooms, F&B income from 2 hotels Gaming Income Hotel Income 2 major Revenue Streams 25

26 Turnover by Business Segment FY 2010 FY 2009 HK$ million % HK$ million % Gaming Income Hotel Income Total

27 Summary of Other Key Financial Data as at 31 December 2010 Statement of Financial Position (HK$m) As at 31 December 2010 As at 31 December 2009 Cash and Bank Balances Total Assets 3,875 3,253 Total Liabilities (55) (45) Net Assets 3,820 3,208 Statement of Cash Flows (HK$m) Year ended 31 Dec 2010 Year ended 31 Dec 2009 Net cash from operating activities Net used in investing activities (729) (88) Net cash from financing activities

28 Financial Results for the year ended 31 December 2010 HK$ 541 million HK$ 414 million HK$ 287 million HK$ 224 million HK$ 230 million HK$ 100 million FY 2009 FY 2010 Turnover FY 2009 FY 2010 Gross Profit FY 2009 FY 2010 Net Profit 28

29 Financial Summary at as 31 December 2010 As at 31 December 2010 As at 31 December 2009 Net asset value per share HK$ 0.37 HK$ 0.36 Cash and bank balance HK$ 617 million HK$ 652 million Net gearing ratio Net Cash Net Cash 29

30 Disclaimer This document contains statements that constitute forward-looking statements, including, but not limited to, statements relating to the implementation of strategic initiatives, and other statements relating to our future business development and economic performance. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macro-economic, governmental and regulatory trends, (2) movements in local and international securities markets, currency exchange rates and interest rates, (3) competitive pressures, (4) technology developments, (5) changes in the financial position or credit-worthiness of our customers, obligors and counterparts and developments in the markets in which they operate, (6) legislative developments, (7) management changes and changes to our business group structure and (8) other key factors that we have indicated could adversely affect our business and financial. Golden Resorts Group Limited is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. This material may not be reproduced, distributed or transmitted to any other person or incorporated in any way into another document or other material without the prior written consent of Golden Resorts Group Limited. If you require further information, please to info@goldenresortsgroup.com This document is not: (a) an offer of securities for sale in Hong Kong or elsewhere; or (b) an invitation to enter into an agreement to acquire, dispose of, subscribe for or underwrite securities; or (c) related to the issue of any securities. This document (and the information contained herein) is not for publication or distribution to any person(s) except as permitted by Golden Resorts Group Limited. 30