Investor Presentation Third Quarter 2018
Key Financial Metrics 7.0 Gross revenues (Php bn) 30,000 Property visitation Average daily 6.0 25,000 5.0 4.0 3.0 2.0 0.9 0.9 1.1 1.0 1.1 1.2 20,000 15,000 10,000 1.0 5,000 0.0 4.0 3.6 4.3 4.5 4.5 4.7 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18-2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Gaming Non Gaming Marriott, Marriott Grand Ballroom, HIEx RWM main entrances 2
Key Financial Metrics EBITDA (Php bn) and margin (%) 1 Net profit/loss (Php bn) and magin (%) 2 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 16% 16% 15% 13% 9% 4% 0.8 0.4 0.9 0.8 0.7 0.2 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0-0.2-0.4-0.6 22% 8% 5% 2% 0.3 0.4 1.2 0.1-0.3-6% -0.4-9% 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 25% 20% 15% 10% 5% 0% -5% -10% -15% EBITDA EBITDA margin (%) Note: 1 EBITDA margin is over gross revenue 2 Net profit margin is over gross revenue. 3
Key Financial Metrics Total debt (Php bn) 50.0 40.0 30.0 20.0 10.0 0.0 17.7 13.4 14.2 21.9 31.4 40.3 2013 2014 2015 2016 2017 3Q 18 Total assets (Php bn) 120.0 100.0 80.0 60.0 40.0 20.0 0.0 61.2 63.9 69.8 76.3 86.4 98.3 2013 2014 2015 2016 2017 3Q 18 50.0 40.0 30.0 20.0 10.0 0.0 Total equity (Php bn) 33.4 39.1 42.0 44.6 44.2 46.1 2013 2014 2015 2016 2017 3Q 18 Total debt/equity and Net debt/equity Net debt/ equity (0.20) (0.11) 0.05 0.19 0.47 0.65 1.00 0.80 0.60 0.40 0.20 0.00 0.50 0.34 0.34 0.49 0.71 0.88 2013 2014 2015 2016 2017 3Q 18 4
Diversified revenue composition VIP and Non VIP revenue breakdown Gaming and Non-Gaming revenue breakdown 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1% 1% 0% 0% 0% 0% 36% 27% 32% 34% 40% 32% 36% 45% 41% 39% 34% 42% 27% 27% 27% 27% 26% 26% 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 18% 21% 21% 18% 19% 20% 82% 79% 79% 82% 81% 80% 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 Non VIP tables Slots VIP ETG Gaming Non-gaming Non VIP segment provides higher quality earnings: Higher margins Sustainable and resilient demand given strong underlying domestic and regional fundamentals Not reliant on credit Non-gaming offerings complement the gaming segment: 2,500 rooms through various hotel brands MICE events Luxury retail 5
Why Travellers?
The first integrated resort in the Philippines All-day entertainment for all age groups Wide spread of dining options An integrated entertainment hub with a diverse array of entertainment options 1,500-seat performing arts theater featuring award-winning plays, musicals and exclusive productions featuring Filipino and foreign artists 4 cinemas (24hrs on weekends) Gamezoo (playzone for kids) Nightclubs Restaurants and bars offering a diverse range of cuisines Award-winning restaurants Impressions (French cuisine) rated as a Perfect 10 by Asia Tatler Dining Passion Cantonese Restaurant was nominated for Hospitality Asia Platinum Awards 2011 Dining Entertainment Retail Gaming One-stop retail destination 11,534 sqm of retail space at Newport mall 90 retail outlets Hospitality World-class gaming facilities Garden Wing: 2 floors of VIP and Non-VIP gaming areas Grand Wing (soft opening): 1 floor of Non-VIP gaming area 280 gaming tables and 1,642 slot machines Separate VIP areas with luxury furnishings and invitation-only rooms Mass focused themed high-energy zone with live entertainment and bar on the Garden Wing ground floor Diverse range of hotel offerings Existing portfolio of 3 hotels at RWM offering 1,454 rooms Marriott Hotel 342 rooms Marriott West Wing 228 rooms Maxims Hotel 172 rooms Holiday Inn Express (formerly Remington) 712 rooms Phase 3 expansion: Addition of 3 new international hotel brands (Hilton, Sheraton and Hotel Okura) with completion expected by 1H 2019 7
Maxims First all-suite luxury hotel in the Philippines 172 butler assisted suites Pool/Spa facilities Completion: December 2010 8
Marriott Hotel Manila 342 keys Pool/Spa facilities 3 basement parking decks Completion: October 2009 9
Marriott Grand Ballroom Largest hotel ballroom in the country Footbridge connectivity 4,000 capacity (theater style set-up) Completion: April 2015 10
Marriott West Wing 10-story with 228 keys Pool/Spa facilities 3 basement parking decks Golf terrace and access to Villamor Golf Club Completion: December 2016 11
RunWay Manila 220 meter air-conditioned pedestrian bridge. Linking Ninoy Aquino International Airport Terminal 3 to Newport City. It can accommodate 2,000 people at any time or 216,000 travelers per day. Completion: April 2017. 12
Growth Potential 2021-2022 2008 July GHK acquired 50% in Travellers pursuant to a joint venture agreement with AGI June Received the first gaming license in the Philippines from PAGCOR 2009 October Marriott Hotel Manila opened at RWM August Gaming facilities and a portion of non-gaming facilities opened at RWM 2010 4Q Maxims Hotel opened at RWM 2011 1Q Excavation work began for Phase 2 (Grand Ballroom & Convention Center) 4Q Remington Hotel and amusement center, GameZoo opened at RWM 2013 1Q, 2Q Excavation work began for Phase 2 (Marriott Annex) Excavation work for Phase 3 expansion commenced in May 2013 2014 2Q Construction for Phase 3 expansion commenced 2015 2Q Commercial operations of Marriott Grand Ballroom 3Q Completion of Belmont Hotel at Newport 2016 4Q Completion of Marriott West wing 2017-2018 2Q 2017 Completion of Runway Manila linking to NAIA Terminal 3 1Q 2018 Rebranding of the Remington Hotel to Holiday Inn Express 2Q 2018 Soft opening of the Grand Wing 2019-2020 2Q 2019 Completion of Phase 3 of RWM Potential Phase 4 at RWM with remaining approx. 2 hectare property Completion of Westside City Resorts World Phase 1 13
Significant Hotel portfolio Gaming centric all-suite hotels International business & luxury hotels Mid-range hotels 1 Travellers will be the largest integrated resort in the country with the most hotel offerings Spanning various international brand hotels Range of hotel classes from budget to luxury 3,550 rooms keys by the end of 2019 Note: 1 Belmont and Savoy are held by Megaworld under AGI 14
Access to AGI and Genting s areas of expertise AGI, as one of Philippines' top conglomerates has an unparalleled understanding of the Philippine consumer Genting Group's global network of "Resorts World" entertainment franchise and gaming operations Alliance Global Group, Inc. (AGI) Listed on PSE with market cap of ~US$3.3bn 1 82% 49% 47% 2 67% 100% Emperador, Inc. Golden Arches Development Corporation Travellers International Hotel Group Megaworld Corporation Infracorp World s largestselling brandy brand No. 2 quick service restaurant chain in the Philippines The 1st integrated resort in the Philippines Notes: 1 As of 30 June 2018 2 Effective interest, inclusive of Megaworld's stake in these entities No. 1 mid income residential developer and BPO office landlord 3 Foray into infrastructure projects that would enhance the Group s overall value ~13 million Resorts World members globally Resorts World Genting, Malaysia Resorts World Sentosa, Singapore Resorts World at Sea Resorts World Birmingham, United Kingdom Resorts World Catskills, New York Resorts World Casino, New York City Resorts World Bimini, Bahamas Resorts World Las Vegas (Under development) Resorts World Miami (Planned) 15
Expansion projects
Two sites RWM + Westside City RW Makati City Central Business District RW Manila is located on a 11.5ha site across from NAIA Terminal 3 Mall of Asia Westside City RW will sit on a 31.0ha site located at Entertainment City Solaire Okada Manila Westside City COD Ninoy Aquino Int'l Airport Manila M A N I L A 17
RWM Multi-phase expansion 18
Holiday Inn Express (formerly Remington Hotel) 712 keys 24-hour fitness center Meeting rooms Basement parking Completion: 2018 19
Phase 3 (Grand Wing) GROSS FLR. AREA: 128,000 sq.m. 357 ROOMS GAMING FLR. AREA: 14,000 sq.m. RETAIL FLR. AREA: 3,200 sq.m. 391 ROOMS * Est. Completion: June 2019 191 ROOMS 20
Grand Wing Partial opening of the ground floor gaming area in May 2018. 35 tables / 400 slot machines. 21
Courtyard by Marriott - Iloilo The first Courtyard by Marriott hotel in the Philippines and the first 5-star rating hotel in Western Visayas. 15-storey with 326 keys Location: Iloilo Completion: May 2018 22
Entertainment
Musicals 2010 2011 2012 2013 2014 2015 2016 2017 24
Concerts (Local and Foreign) KENNY G. Live in Manila 25
Robust market fundametals
GDP growth (2Q 2018) Strong Philippine macroeconomic environment Strong Philippine GDP growth outlook OFW remittances and BPO revenues are significant components of Philippine domestic spending power (%) 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 6.0 5.3 4.6 4.5 3.8 Philippines Indonesia Thailand Malaysia Singapore (US$bn) 60.0 50.0 40.0 22.9 24.5 18.0 20.5 30.0 15.8 20.0 5.5 23.0 24.6 25.6 26.9 28.1 10.0 14.2 0.0 2013 2014 2015 2016 2017 1H 18 OFW BPO Notes: 1 BPO figure as of 31 March 2018 Source: Bloomberg Source: Bangko Sentral ng Pilipinas 27
Growing tourism Strong growth momentum of visitor arrivals In 2017, Philippines international arrivals reached 6.6 million. First half 2018 international arrivals grew by 10% yearon-year. Key international gaming feeder markets make up majority of visitor arrivals to the Philippines 1H 2018 7.0 6.0 Others 22% Korea 22% 5.0 4.0 Taiwan 3% 3.0 2.0 1.0 Australia 4% ASEAN 8% China 17% 0.0 2013 2014 2015 2016 2017 1H 18 Japan 9% USA 15% 28
Thank you