3Q 2017 BUSINESS PERFORMANCE

Transcription

1 3Q 2017 BUSINESS PERFORMANCE

2 DISCLAIMER This material has been prepared for investors convenience, based on 3Q17 financial statements that have not yet been officially audited, which could alter final data. Actual results may differ from forecasts herein given the unpredictability of future performances; Hotel Shilla will therefore not revise or update this material.

3 CONTENTS 01 CORPORTATE OVERVIEW BUSINESS PERFORMANCE AND OUTLOOK APPENDIX 11

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5 VISION TRAVEL RETAIL Hotel Shilla aspires to become a Premium Lifestyle Leading Company that offers clients the best choice based on dignity and trust. The company aims to provide optimal services across its business range, including travel retail, hotel, leisure, LEISURE PREMIUM LIFESTYLE LEADING COMPANY HOTEL F&B, and business travel management(btm) to improve the lifestyles of clients. BTM F&B 2

6 HISTORY The Shilla Seoul opens Seoul Shilla Duty Free opens Jeju Shilla Duty Free opens The Shilla Jeju opens IPO at Korea Exchange Jinji Lake Hotel in Suzhou, China opens Incheon Int l Airport Duty Free opens Chungju, Daegu Int l Airport Duty Free opens Gimpo Int l Airport Duty Free opens LOUIS VUITTON at Incheon Int l Airport opens The 1 st SWEETMAY in Macao opens Changi Int l Airport Duty Free in Singapore opens Establishment of SHILLA STAY Co., Ltd Macao Int l Airport Duty Free opens Establishment of HDC SHILLA Co., Ltd Shilla I Park Duty Free opens Phuket Duty Free opens Tokyo Duty Free opens AWARDS 2008 Gazette, The Best hotel in Seoul Institutional Investor, The world s Top 100 Hotels (1st in Asia) LHW Leader s Club, Golden award 2009 Zagat, The Best Hotel in service sector TTG Travel Award, The Best City Hotel in Seoul 2010 Institutional Investor, The Best Hotel in Seoul 2011 NCSI, No.1 Hotel in service sector 2012 Travel+Leisure, The World s Best Awards Asia 16th 2013 KCSI, The Best Duty Free Store 2014 NCSI, The Best Company Interbrand, The Best Korea Brands NSCI, No.1 Hotel in hotel sector 2016 NSCI, The Best Company Michelin Guide, 3 Star Restaurant ( La Yeon of Seoul Hotel) 2017 KCSI, The Best Duty Free Store Forbes Travel Guide, 4 Star Hotel 3

7 BUSINESS PORTFOLIO TR(Travel Retail) HOTEL & LEISURE Seoul Downtown DF Seoul Online DF Jeju Jeju Downtown DF Shilla Stay Incheon Int l Airport DF Jinji Lake Shilla Hotel in China (Management) Changi Int l Airport DF in Singapore Geoje Samsung Hotel (Management) Shilla I Park Downtown DF Business Travel Management (BTM) Macao Int l Airport DF CFC (Corporate Fitness Center) Phuket Downtown DF in Thailand Leports (Lease) Tokyo Downtown DF in Japan 4

8 BUSINESS SITE OVERVIEW TR(Travel Retail) HOTEL & LEISURE Seoul DF Seoul Hotel BTM Business 7,178 sqm Jeju DF 463 Rooms (43.3 sqm per room) 7 Banquets CFC Demarq Changi Airport DF (Singapore) 6,384 sqm Incheon airport DF 3,444 sqm Changi airport DF 6,042 sqm 7 Restaurants Jeju Hotel 429 Rooms (44.6 sqm per room) 6 Banquets 6 Restaurants Leports Business VANTT Seocho Leports Center Macao Airport DF Seoul Hotel Seoul DF Shilla I Park DF Incheon Airport DF Shilla I Park DF 11,417 sqm Macao airport DF 1,120 sqm Phuket DF Management Hotel Shilla Stay (Dongtan, Yeoksam, Jeju, Seodaemoon, Ulsan Mapo, Gwanghwamoon, Guro, Cheonan,Seocho,Haeundae) Jinji Lake Shilla Hotel in Suzhou, China Geoje Samsung Hotel Phuket DF In Thailand Tokyo DF in Japan Samsung Hotel Jeju Hotel Jeju DF 8,155 sqm Jinji Lake Tokyo DF As of Sep 30th, ,317 sqm 5

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10 BUSINESS PERFORMANCE (3Q 2017) Non-Consolidated Sales increased by 14% and OP increased by 5% YoY (KRW bn) Sales OP 3Q16 3Q17 YoY 2Q17 QoQ Sales % % TR % % Hotel&Leisure % % 24.5 OP % % TR % % Hotel&Leisure % % OP Margin 4.3% 3.9% 0.4%p 3.3% 0.6%p 3Q16 3Q17 2Q17 3Q16 3Q17 2Q17 7

11 BUSINESS PERFORMANCE (3Q 2017) Consolidated Sales increased by 14% and OP increased by 20% YoY (KRW bn) Sales OP 3Q16 3Q17 YoY 2Q17 QoQ Sales , % % TR % % , Hotel&Leisure % % 25.3 OP % % 17.3 TR % % Hotel&Leisure % OP Margin 2.7% 2.8% 0.1%p 1.9% 0.9%p 3Q16 3Q17 2Q17 3Q16 3Q17 2Q17 8

12 TRAVEL RETAIL BUSINESS Consolidated Sales increased by 14% and OP increased by 27% YoY Sales (KRW bn) OP (KRW bn) Q Review The sales in downtown and airport stores increased by 19%, 7% YoY respectively. The OP of TR business is 23.5 KRW bn. Downtown DF sales vs. Commission rates (KRW bn) Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Sales Comn Q Outlook (%) (7.9) (9.8) (10.6) (11.8) (11.8) (11.9) (13.1) (10.5) (9.9) 8.2 Increase competency as a global travel retailer through continuous expansion in foreign markets, and stabilization of current operations. 3Q16 3Q17 2Q17 3Q16 3Q17 2Q17 Downtown Airport 9

13 HOTEL & LEISURE BUSINESS Consolidated Sales increased by 9%, while OP remained constant YOY Sales (KRW bn) OP (KRW bn) Q Review The sales of the Hotel & Leisure business increased by 9% YOY, recording total sales of 118 KRWb due to growth of the Shilla Stay Business and the Leisure department. Quarterly Rate of Occupancy Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Seoul 60% 67% 52% 75% 80% 76% 60% 66% 78% Jeju 90% 83% 81% 89% 89% 84% 85% 89% 87% 4Q Outlook Improvement in overall performance through the enhancement of product offerings, resulting in sales efficiency and higher occupancy rates. 3Q16 3Q17 2Q17 3Q16 3Q17 2Q17 Seoul Jeju Others Leisure 10

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15 (KRW bn) Annual CAPEX Y2015 Y2016 3Q17 CAPEX * Non-Consolidated, Accrued in period Major Financial Ratios (KRW bn) Y2015 Y2016 3Q17 Debt/Equity Ratio 193% 208% 233% Liabilities 1, , ,555.5 Equity Debt Equity Current Assets Current Debt 1, , ,258.8 Current Ratio 176% 112% 143% 1, ,079.2 Current Assets 1, , ,258.8 Current Liabilities EBITDA/Sales 4.6% 4.1% 4.5% EBITDA Sales 3, , ,067.2 Y2015 Y2016 3Q17 * Consolidated 12

16 SHAREHOLDERS ( Common Stock ) Affiliates 17.2% Treasury Stock 5.4% NPS 13.5% Foreign Investors 17.1% Others 46.8% As of Sep 30th,

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