Shangri La Asia : 2022 Final Results Presentation

Shangri-La Asia Ltd 2021 Annual Results

24 March 2022

Strong Recovery in 2021: Negative cash flow reduced significantly to -USD51.2m from -USD301.7m

Results highlights: FY2021 vs FY2010

USDm	FY2021	FY2020	YoY (USDm)	YoY (%)
Consolidated Revenue	1,241.0	1,033.4	207.6	20.1%
Effective share of EBITDA	418.0	181.6	236.4	130.2%
Operating PATMI	-193.2	-432.1	238.9	55.3%
Total PATMI	-290.6	-460.2	169.6	36.9%

Results summary

• 2021 results saw strong improvement driven by recovery in key markets and Group's effective cost management
• • Group reduced full year negative cash flow significantly to -USD51.2m from -USD301.7m a year ago
  • 2H 2021 continues improvement trend since outbreak
• Hotel properties in most destinations saw year-on-year improvement
• • Group recovery led by Mainland China though uneven due to sporadic local outbreaks
  • Hong Kong supported by domestic demand as well as quarantine businesses
  • European and some ASEAN hotels saw improvement in 2H 2021 as restrictions began to loosen
• Investment properties continue to provide stable base for the Group

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FY2021 and recent updates

Major events

Hotels

New Opening

• Shangri-LaQiantan, Shanghai, Mainland China (October 2021)
• Shangri-LaShougang Park, Beijing, Mainland China (December 2021)
• Shangri-LaJeddah, Saudi Arabia (February 2022)
• Shangri-LaNanning, Mainland China soft opening (March 2022)

Other Developments

• Signed conditional SPA with Samty Group to divest 80% of Kyoto project, transaction to be completed by Q2 2022 (April 2021)
• Ceased hotel management agreement with Traders Fudu Hotel, Changzhou (June 2021)

Group

• 50th anniversary celebrations with refreshed brand logo and #WithHeart campaign
• Refresh of Shangri-la Circle loyalty program and launch of by-invitation-only Polaris tier to deepen engagement with customers

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FY2021 and recent updates (Continued)

Strong balance sheet

• Group cash at USD785m as at 31 December 2021
• Total committed undrawn facilities of USD1.9bn as at 31 December 2021, sufficient capacity to cover refinancing needs for next 12 months
• Almost 80% our 2022 refinancing arrangement completed

Prospects

• COVID uncertainties remain, ensure preparedness and readiness to drive business under different operating environments
• • Mainland China to capture opportunities from domestic consumption and premiumisation as borders remain closed under zero-COVID policy
  • Ex-Chinato prepare for business rebound as travel restrictions are lifted under endemic approach
• Emergence of recent uncertainties from Ukraine, inflation and interest rate hikes
• • We continue to be vigilant on cash conservation and cost management

Final dividend

• The Board proposes no final dividend to conserve cash

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Financial Highlights - FY2021 vs FY2020

• Effective share of EBITDA improved by USD236m (130%) compared to prior year and 48% of 2019 level
• Major improvement driven by hotel business recoveries and stable IP business in China
• Agile operating & cost containment efforts also drove improvement in EBITDA

In USD mn		FY2021			FY2020		FY21 v FY20		% Change		2021 %
						of 2019
Revenue		1,241.0		1,033.4			20.1%	51.0%
			207.6
EBITDA		132.8		(84.9)				nm	22.7%
			217.7
EBITDA Margin		10.7%		-8.2%
Effective share of EBITDA (Note 1)		418.0		181.6			130.2%	48.3%
			236.4
Effective EBITDA Margin		23.9%		12.1%
Operating Segment PATMI		(71.3)		(288.1)			75.3%		nm
			216.8
Corporate, Project Expenses and FX		(4.3)		(25.9)			83.4%
			21.6
Corporate Interest Expenses (net)		(117.6)		(118.1)			0.4%
			0.5
Operating PATMI		(193.2)		(432.1)			55.3%		nm
			238.9
Other non-operating items		(97.4)		(28.1)			(246.6%)
			(69.3)
Total PATMI		(290.6)		(460.2)			36.9%		nm
			169.6

(1) Effective Share of Revenue and EBITDA - include the effective share of Revenue and EBITDA of subsidiaries and associated companies

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