4Q 2016 BUSINESS PERFORMANCE

Transcription

1 4Q 2016 BUSINESS PERFORMANCE

2 DISCLAIMER This material has been prepared for investors convenience, based on 4Q16 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 13

4

5 INTRODUCTION THE SHILLA is an affiliated company of the Samsung Group, providing the premium customer service in the service business. Electronics Finance Service ELECTRONICS LIFE INSTURANCE THE SHILLA C&T (Trading) DISPLAY FIRE & MARINE INSTURANCE Heavy-Industry & Construction HEAVY- INDUSTRIES C&T (Fashion) C&T (Resort) ENGINEERING SDI CARD WORLD WIDE S-1 C&T (Construction) ELECTRO- MECHANICS SDS SECURITIES SERI MEDICAL CENTER ASSET MANAGEMENT BIOLOGICS BIOEPIS Major Shareholders of The Shilla in Samsung Group : Life Insurance 7.4%, Electronics 5.1%, Securities 3.1%, Card 1.3%, SDI 0.1% 2

6 VISION TRAVEL RETAIL Hotel Shilla aspires to become a Premium Lifestyle Leading Company that offers clients the best options based on dignity and trust. The company will 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 3

7 HISTORY AWARDS 1979 The Shilla Seoul open 2008 Gazette, The Best hotel in Seoul 1986 Seoul Shilla Duty Free open Institutional Investor, The world s Top 100 Hotel(1st in Asia) 1989 Jeju Shilla Duty Free open LHW Leader s Club, Golden award 1990 The Shilla Jeju open JALPAK, The Best Hotel IPO at Korea Exchange Jinji Lake Hotel in Suzhou, China open Incheon Int l Airport Duty Free open Chengju, Daegu Int l Airport Duty Free open Gimpo Int l Airport Duty Free open LOUIS VUITTON at Incheon Int l Airport open The 1 st SWEETMAY in Macao open Changi Int l Airport Duty Free in Singapore open Establishment of SHILLA STAY Co., Ltd Macao Int l Airport Duty Free open Establishment of HDC SHILLA Co., Ltd Shilla I Park Duty Free open Zagat, The Best Hotel in service sector TTG Travel Award, The Best City Hotel in Seoul Institutional Investor, The World s Top 100 Hotels Institutional Investor, The Best Hotel in Seoul NCSI, No.1 Hotel in service sector Travel+Leisure, The World s Best Award Asia 16th KCSI, The Best Duty Free Store NCSI, The Best Company Interbrand, The Best Korea Brands 2015 NSCI, No.1 Hotel in hotel sector NSCI, The Best Company Phuket Duty Free open 4

8 Current ($mil) 3,200 2,800 Founding Stage Hotel operation (Seoul, Korea) TR Hotel Others Business Development Business diversification (Duty free) Geographic expansion (Jeju Island) Growth Growth driven by duty free business - CAGR DF 16% vs. Hotel 3% Business Reinforcement Re-alignment of internal strengths Stronger focus on high-end brands Overseas hotel management Launch of new businesses Quantum Jump Airport DF concessions - Incheon, Gimpo, Singapore, Macao etc. Hotel expansion Sweetmay biz launched DFASS Group acquisition Acquired Seoul DF license (`15.7) First downtown DFS in Phuket (`16.11) Shilla I Park DF & Phuket DF open Singapore Changi Int l Airport C&P open 2,400 Shilla Stay Dongtan open 2,000 1,600 IPO (Korea Exchange) Sweetmay Macao open Incheon Int l Airport DF open 1,200 Jeju Hotel open China Jinji Lake Hotel open Seoul Hotel open Seoul DF open Jeju DF open VANTT open 0 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

9 BUSINESS PORTFOLIO TR(Travel Retail) Hotel & Leisure Seoul Downtown DF Seoul Jeju Downtown DF Jeju Shilla I Park Downtown DF Jinji Lake Shilla Hotel in China (Management) Phuket Downtown DF in Indonesia Geoje Samsung Hotel (Management) Internet DF Shilla Stay Incheon Int l Airport DF Business To Management (BTM) Changi Int l Airport DF in Singapore CFC (Corporate Fitness Center) Macao Int l Airport DF Leports (Management) Sweetmay in Macao & Hongkong 6

10 BUSINESS SITE OVERVIEW TR Business Seoul DF 370 Brands 7,178 sqm Jeju DF 275 Brands 6,384 sqm Incheon airport DF 390 Brands 3,444 sqm Changi airport DF 191 Brands 6,042 sqm Macao airport DF 87 Brands 1,120 sqm Shilla I Park DF 548 Brands 11,417 sqm Phuket DF 432 Brands 8,155 sqm HOTEL & LEISURE Business Seoul Hotel 463 Rooms (43.3 sqm per room) 7 Banquets 7 Restaurants Jeju Hotel 429 Rooms (44.6 sqm per room) 6 Banquets 6 Restaurants Management Hotel BTM Business CFC Demarq Leports Business VANTT Jinji Lake Shilla Hotel in Suzhou, China Geoje Samsung Hotel Seocho Leports Center Shilla Stay (Dongtan, Yeoksam, Jeju, Seodaemoon, Ulsan Mapo, Gwanghwamoon, Guro, Cheonan) As of Dec 31 st, 2016 Phuket DF Changi Airport DF (Singapore) Hongkong Macao Airport DF Incheon Airport DF Jinji Lake Seoul Hotel Seoul DF Shilla I Park DF Jeju Hotel Jeju DF Samsung Hotel 7

11

12 BUSINESS PERFORMANCE (4Q 2016) Non-Consolidated Sales increased by 10% and OP decreased by -8% YoY (KRWb) 4Q15 4Q16 YoY 3Q16 QoQ Sales OP Sales % % TR % % Hotel&Leisure % % OP % % TR % % Hotel&Leisure % 5.9 Loss OP Margin 3.3% 2.8% - 4.3% - 4Q15 4Q16 3Q16 4Q15 4Q16 3Q16 9

13 BUSINESS PERFORMANCE (4Q 2016) Consolidated Both Sales & OP increased by 10%, 38% YoY consecutively 4Q15 4Q16 YoY 3Q16 QoQ (KRWb) Sales OP Sales % % TR % % Hotel&Leisure % % OP % % 15.6 TR % % 11.3 Hotel&Leisure Loss Decreased 6.8 Turnaround OP Margin 1.3% 1.7% - 2.7% - 4Q15 4Q16 3Q16 4Q15 4Q16 3Q16 10

14 TRAVEL RETAIL BUSINESS Consolidated Both Sales & OP increased by 10%, 19% YoY Sales (KRWb) OP (KRWb) 4Q Review The sales in downtown and airport have been increased by 13%, 7% YoY consecutively, while the OP of TR business is 17.3KRWb Sales of the downtown DF vs. Commission Y2014 Y2015 Y2016 (KRWb) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales Comn (%) (9.4) (12.2) (13.0) (10.6) (9.2) (9.6) (7.9) (9.8) (10.6) (11.8) (11.8) (11.9) Q Outlook The competence as the global travel retailer will be continuously upgraded by exploring overseas new markets. 4Q15 4Q16 3Q16 4Q15 4Q16 3Q16 Downtown Airport 11

15 HOTEL & LEISURE BUSINESS Consolidated Sales increased by 9% and OP loss decreased YoY Sales (KRWb) OP (KRWb) Q Review The sales of the Hotel & Leisure business has been increased by 9% YoY, recorded 99.0KRWb as the sales growth and the profitability of Shilla Stay improved. Quarterly Rate of Occupancy Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Seoul 45% 61% 60% 67% 52% 75% 80% 76% Jeju 81% 76% 90% 83% 81% 89% 89% 84% 1Q Outlook 4Q15 4Q16 3Q Q15 4Q16 3Q16 With the better package-items, the betterment of the occupancy rates and the business efficiency will lead to the improvement of its overall performance. Seoul Jeju Others Leisure 12

16

17 (KRWb) Annual CAPEX Y2014 Y2015 Y2016 CAPEX * Non-Consolidated, Accrued in period Major Financial Ratios (KRWb) Y2014 Y2015 Y2016 Debt/Equity Ratio 161% 193% 208% Debts Equity Current Assets Current Debts Liabilities 1, , ,379.4 Equity Current Ratio 189% 176% 112% 1, , , , ,079.2 Current Assets , ,079.2 Current Liabilities EBITDA/Sales 7.0% 4.6% 4.1% EBITDA Sales 2, , , Y2014 Y2015 Y2016 * Consolidated 14

18 OWNERSHIP STRUCTURE NPS 10.0% Affiliates 17.0% Foreign Investors 14.4% Others 58.6% As of Dec 31 st,

19