INVESTOR PRESENTATION
1383.HK SUNCITY GROUP HOLDINGS LTD Annual 2020 Results 29 March 2021
INNOVATIVE DREAMS BRING A WORLD OF ENDLESS POSSIBILITIES Chairman’s Letter to Shareholders
Dear fellow Suncity shareholders,
Needless to explain, 2020 was one of the worst years in modern history, as the majority of the year has been affected by the COVID-19 pandemic. We were all being led through a roller coaster ride in a mere short year. Global markets initially bottomed then boomed, yet real economic recovery is still underwater. While Suncity was on the way charting to the new lands as a new comer in the entertainment scene, the monster COVID dragged us back from otherwise arriving at our initial promised land. Regrettably, COVID happened at a time when we have just finished sharpening the flagship sword, Hoiana, after years in the making. Full and ready to strike, yet the virus has put Hoiana’s Grand Opening to a halt. Flights and visas to Vietnam are no longer accessible, leaving us no chance to showcase what a masterpiece that we have created. 2020 was history, and letting bygones be bygones would be the best strategy. As long as we stay afloat while we sharpen other swords, and I am not worried about not having chances to strike in the future.
Amidst the doom and gloom, there are silver linings. Under the Suncity portfolio, we also have integrated resorts that are supported by local markets, such as Tigre de Cristal. COVID has offered a chance to prove that an integrated resort with a local exposure could offer some downside protection, such as Tigre de Cristal, for being EBITDA-positive in the second half of 2020 with the support of the local Russian market. I am also pleased to report a net profit attributable to equity holders of RMB 786.4 million, though non-cash in nature, it sets a good start for the transformation of Suncity into a leading Asian integrated resort operator.
Rewinding the clock to a couple of years ago, I came across Tigre de Cristal in a business trip. As an entrepreneur, I see a multitude of opportunities untapped – its already solid local mass and slot businesses; its proximity to South Korea and Japan; as well as its unparalleled profitability profile, are the beauty of operating this resort Tigre de Cristal. Before Suncity took over, Tigre de Cristal has already delivered fair, though not staggering results. I thought to myself, how could I help to find the missing puzzle to make Tigre de Cristal glow as the highest-return integrated resort in Asia? What if I could take control of it, sprinkle just the right amount of change and add some flavour to make sure that Tigre de Cristal will be the perfect dish that suits well to the tastes of our target Asian customers? This is exactly the gap that Suncity could bridge, because at Suncity we understand the Asian way of conducting entertainment businesses. Now that Suncity has become the parent company of Summit Ascent, I will make sure Suncity will help Tigre de Cristal glow.
I am also blessed to have found another gem in the Philippines, where the next finest and best integrated resort in Entertainment City will be built from scratch with our partner. My team and I are busy crafting the blueprints of this destination on how we could build an integrated resort from the ground up that is tailored to the taste of local Filipino and Asian customers. We gather prime ingredients for a successful integrated resort, putting them under boil utilising the trialled and tested Suncity recipe, while tweaking local flavours to suit each market’s local taste. In terms of design, scale and connectivity, I am confident that Westside City Project would be amongst the best in the entire Entertainment City in Manila.
2 Chairman’s Letter to Shareholders
(con’t)
On a strategic geopolitical basis, we diversify our integrated resorts in North, South and East of Asia. Under the Suncity umbrella, we have everything on the menu of integrated resorts for the pleasure of our guests – sun, sea and sand for the entire family in the tropical Hoiana; skiing, shooting and shots of vodka for adults’ entertainment in Tigre de Cristal; slots and mass entertainment in Westside City Project in the Philippines. Not only does Suncity build and operate integrated resorts, now Suncity also develops skiing and diving hotels in Niseko and Miyako Islands in Japan, so as to increase customer stickiness on non-gaming perspective. The Suncity standard will ensure that our guests will receive the same level of superior services in all of our integrated resorts. The transformation of the company has been ongoing, as the Group has just announced the disposal of the property leasing and property development businesses in February 2021, indicating that the Group is officially on a fast track to develop its integrated resorts and hotels businesses.
I am also delighted to welcome a team of veteran integrated resort professionals to join the Group. Considering Macau is an exemplary illustration of running the world’s most successful integrated resorts, together, we will continue to make good use of Macau as a headquarter for Suncity’s global integrated resort operations. We will bring the Macau-style “World Centre of Tourism and Leisure” hospitality to a global stage by forming a portfolio of integrated resorts in alliance altogether in strategic locations in North, South and East of Asia. The reopening of borders will unleash pent-up demand from tourists where they can travel freely to our integrated resorts for the unparalleled entertainment experience we offer.
Although 2020 was far from perfect, I am grateful to the Chinese government and the Macau government for their swift and decisive actions to protect their citizens during the pandemic. I would also like to thank the Russian government for starting to offer vaccines to our Russian staff, as well as to the Vietnamese and Filipino governments for successfully controlling the pandemic locally. Asia is way ahead of the rest of the world in the pandemic. Progressively, I am glad to witness local businesses are coming back. In undue hard times like now, our guests and our staff’s safety are of utmost priority to us. Our team will deliver all necessary precautionary measures recommended by the local authorities to ensure a worry-free entertainment experience for our guests.
Finally, I would like to extend my gratitude to our global team, our shareholders, our suppliers, our investment partners and our guests for going through a tough 2020 with us. I would also like to thank our valuable team members for their hard work and their patience to grow together with the company. 2020 may have been tough, yet we passed every single hurdle that was laid ahead of us before, and I am sure there is no difference this time.
Mr Alvin Chau Cheok Wa Chairman Suncity Group Holdings Limited 29 March 2021
3 COVID-19 Prevention Measures in Suncity’s Integrated Resorts
Tigre de Cristal staff has started to receive Russia’s self-developed Sputnik V COVID-19 vaccine Applied social distancing in public Established Covid-19 areas; Employees wear face masks in Task Force and published weekly premises internal communications
4 Group Annual 2020 Results
Financial Update 1383.HK Annual 2020 Results Highlights
Profit attributable Basic Earnings TdC Recovery in 2H vs FY2020 TdC GGR to Equity Holders per Share Pre-pandemic1 Mass Table Drop HK$ 250million recovered to 81% RMB 786.4million RMB 10.65 cents Electronic Gaming Volume recovered to 90%
Hoiana GGR Group Total Group Revenue Mix Bank Balances & Cash since preview Property development Revenue 0.0%
19.6% Property leasing and 21.3% management and operation of malls US$ 8.9 million RMB 2,225.6 million Hotel and integrated 3.9% RMB 199.3 million resort general FY 2020 consultancy services Travel and related 0.0% products and services
Others 55.2% Gaming and Hotel Operations
1 Pre-pandemic: Average monthly volume recorded in 2H 2020 as a percentage of average monthly volume recorded during the pre-closure period of Q1 2020
6 1383.HK Annual 2020 Results Highlights
Suncity: Significant Turnaround to Net Profit; though Primarily Non-Cash in Nature • Since October 2020, Summit Ascent Holdings Limited (“Summit Ascent”) became a subsidiary of Suncity. Suncity now owns approximately 69.66% of Summit Ascent. Subsequently, Summit Ascent increased holdings of Tigre de Cristal to approximately 77.5% • Full Year Group Total Revenue of RMB199.3 million, down 67% year-on-year • Full Year Group Consolidated Adjusted EBITDA of RMB(105.2) million, versus RMB(59.4) million in 2019 • Full Year Group Net Profit Attributable to Equity Holders of the Company of RMB786.4 million in 2020, significantly turnaround from Net Loss Attributable to Equity Holders of the Company of RMB(1,484.3) million in 2019, though primarily non-cash in nature
Group & Segmental Results: New segment in Operation of Integrated Resort Started to Contribute Following the Acquisition of Summit Ascent • Full Year travel related products and services segment revenue of approximately RMB110.0 million, down 79% year-on-year • Post-acquisition operations of integrated resort1 - Tigre de Cristal contributed revenue from gaming and hotel operations of approximately RMB42.4 million to the Group • Full Year property leasing and management and operation of malls segment revenue of approximately RMB39.0 million, down 26% year-on-year • Full Year hotel and integrated resort general consultancy services segment revenue of approximately RMB7.9 million, down 45% year-on-year
1Represents Post-acquisition results of Summit Ascent since 16 October 2020
7 1383.HK Annual 2020 Results Highlights
Tigre de Cristal: Solid Local Mass & Electronic Gaming Businesses when Borders were Closed; Adjusted EBITDA Turned Positive in 2H 2020, Cost-Cutting Initiative in Place • Tigre de Cristal recorded a decent recovery in mass and electronic gaming businesses in 2H • Full Year Net Revenue from gaming operations of HK$202.9 million, down 58% year-on-year • Full Year Total Gross Gaming Revenue (“GGR”) of HK$249.7 million, down 69% year-on-year • Full Year Adjusted EBITDA of HK$(14.7) million, compared to a positive Adjusted EBITDA of HK$214.8 million in 2019 • 2H Adjusted EBITDA of HK$7.4 million, down 93% year-on-year and turned from Adjusted EBITDA of HK$(22.1) million in 1H to positive • Average Hotel occupancy was 12% during weekends and 19% during weekdays in 2020
Hoiana: Cost-Cutting Initiative in Place ; Ensuring Fiscal Survivability • Extremely challenging business environment due to COVID-19 • Post-Preview2 Total Net Revenue of US$4.8 million • Post-Preview2 Total GGR of US$8.9 million • Post-Preview2 Total Adjusted EBITDA of US$(32.0) million • Hoiana played unlucky in its gaming operations which decreased its Adjusted EBITDA by approximately US$1.2 million. Normalised Adjusted EBITDA was US$(30.8) million in 2020
2Post-preview refers to the period from 28 June 2020 (the date of commencement of casino operations) to 31 December 2020
8 1383.HK Annual 2020 Results Highlights
Balance Sheet: Strong Support from the Main Shareholder; Enhanced the Group’s Net Asset Position by Exchanging his Shareholder Loans into Perpetual Securities • Main Shareholder Mr. Chau exchanged his shareholder’s loans into perpetual securities, and committed to a total of HK$6 billion • Enhanced Group’s Net Asset Position; Enlarged its Capital Base and Reduced Gearing • Bank balances and cash of RMB2.2 billion as at 31 December 2020 • Total Bank and other borrowings of approximately RMB1.3 billion as at 31 December 2020
Development Updates: Clear Roadmap for Integrated Resort Development in Asia • Russia: Tigre de Cristal Phase I upgrade ready – Brand-new Suncity VIP room, restaurants and a new private club are now ready. Phase II planning & design on its way, although there were minor delays due to COVID-19 • Philippines: Westside City Project’s main design and piling works are now completed; Moving onto building the superstructure above the ground • Vietnam: To ensure fiscal survivability in Hoiana until travel resumes • Japan: Moving forward with plans to develop a diving resort in Miyako Islands, Okinawa; and a skiing resort in Niseko, Hokkaido • Other international locations: Actively exploring other overseas markets
9 1383.HK Total Revenue Summary FY 2020
1383.HK FY2020 Total Revenue decreased by 67% YoY to RMB199.3million
1383.HK Total Revenue Summary RMB’000 YoY
Total: 611,827 Operations of integrated resort - Tigre de Cristal n/a 700,000 8,192 Property development (100%) 600,000 Property leasing and management and operation of malls (26%) 500,000 Hotel and integrated resort general consultancy services (45%) 400,000 525,534
Total: 199,291 Travel and related products and services (79%) 300,000 - Others (100%) 200,000 110,024 7,879 Total (67%) 100,000 14,450 39,011 44,750 18,901- - - 42,377 FY 2019 FY 2020
Others Travel and related products and services Hotel and integrated resort general consultancy services Property Leasing and management and operation of malls Property Development Operations of integrated resort - Tigre de Cristal 10 A Growing Asset Base & Ample Liquidity Total Bank Balances and Cash amounting to RMB2.2 billion in 2020 (+670% YoY) Total Assets of RMB9.03 billion in 2020 (+119% YoY)
RMB’000 Bank Balances and Cash RMB’000 Total Assets 2,500,000 10,000,000 2,225,599 9,031,098 9,000,000 +119% YoY 2,000,000 +670% YoY 8,000,000
1,667,298 7,000,000
5,830,044 1,500,000 6,000,000
5,000,000 4,118,992 1,000,000 4,000,000
3,000,000
500,000 2,000,000 289,014 1,000,000
0 - FY2019 Jun 2020 FY2020 FY2019 Jun 2020 FY2020
11 Tigre de Cristal – 2H & FY 2020 Breakeven during COVID in 2H 2020 ; Any VIP Revenue will become Adjusted EBITDA in the Future 2H 2020 positive Adjusted EBITDA of HK$7.4 million, down 93% YoY and turned from negative Adjusted EBITDA of HK$(22.1) million in 1H to positive
• Full Year Total Revenue from gaming and hotel operations of HK$211.2 million, Tigre de Cristal YoY HoH down 60% YoY
• Full Year negative Adjusted EBITDA of HK$(14.7) million, compared to a positive Total Revenue from Gaming and (60%) 20% Adjusted EBITDA of HK$214.8 million in 2019 Hotel Operations • 2H Adjusted EBITDA of HK$7.4 million, down 93% YoY and turned from negative Gaming Adjusted EBITDA of HK$(22.1) million in 1H to positive VIP Gross Win (88%) (96%) • VIP Gross Win decreased 88% YoY to HK$52 million in 2020, and decreased 96% Mass Net Win (53%) 41% HoH Electronic Gaming Net Win (45%) 51% • Mass Net Win decreased 53% YoY to HK$82 million in 2020, yet increased 41% HoH Non-Gaming Revenue1 (84%) 25%
• Electronic Gaming Net Win decreased 45% YoY to HK$103 million, yet increased Adjusted EBITDA (HK$'000) and 51% HoH Adjusted EBITDA Margin (%) HK$’000 1 • Non-gaming revenue decreased 84% YoY to HK$8.3 million, yet increased 25% HoH 10,000 6.5% 7% 5,000 • Average hotel occupancy was 12% during weekends and 19% during weekdays in 7,470 5% 2020 - (5,000) 3%
(10,000) (22,149) 1% (15,000) -1% (20,000) 1 Non-gaming revenue: refers to revenue from hotel operations (25,000) -3% 1H2020 2H2020 12 Adjusted EBITDA Margin Hoiana – Post-Preview Results 2020
Managing cashflow to ensure fiscal survivability; Post-Preview Results 2020 generated US$8.9 million GGR and Adjusted EBITDA of US$(32.6) million Hoiana 2020 since Q3 20201 Q4 2020 QoQ US$'000 preview • Total GGR of US$8.9 million in 2020 since preview opening in June VIP Gross win (461) 5,837 5,376 1,366% • Total Net Revenue of US$4.8 million in 2020 Mass Gross win 1,089 1,131 2,220 4% • VIP Gross Win since preview 2020 was US$5.4 million • Mass Gross Win increased 4% QoQ in Q4 vs Q3; since preview 2020 Electronic Gaming Mass Gross Win was US$2.2 million 804 533 1,337 (35%) Gross Win • Electronic Gaming Gross Win decreased 35% QoQ in Q4 vs Q3; since preview 2020 Electronic Gaming Gross Win was US$1.3 million
• Since preview 2020 Adjusted EBITDA was US$(32.0) million Gross Gaming Revenue 1,432 7,501 8,933 424% • Hoiana played unlucky in its gaming operations which decreased its Adjusted EBITDA by approximately US$1.2 million since preview 2020 Adjusted EBITDA (US$’000) US$’000 • Normalised Adjusted EBITDA was US$(30.8) million since preview 2020 35,000 15,000
-5,000 FY 2020 -25,000
-45,000 -31,951
1For the period from 28 June 2020 (the commencement date of casino operation) to 30 Sept 2020 13 Full Financial Support from the Chairman Proof that he is not worried about the Group in not repaying him
On 18 Aug 2020, Mr. Chau exchanged his unconditional loans into Perpetual Securities to a maximum of HK$6 billion (i.e. liability will be classified as equity → enhances Suncity’s Net Asset Position)
Perpetual Securities Shareholder's Unconditional Loan Facility (Shareholder’s Equity)
Total: HK$6 billion HK$’000
6,000,000 628,000
5,000,000 1,827,000 From 18 Aug onwards 4,000,000 • Previously, Mr. Chau has committed HK$5.6 billion in 3,000,000 5,372,000 unconditional shareholder loan facility to the Group. In
3,793,000 Aug 2020, Mr. Chau exchanged the loans into perpetual 2,000,000 securities, and committed to a total of HK$6 billion • As of 31 Dec 2020, the Group has approx. HK$628 1,000,000 million of unissued perpetual securities from Mr. Chau
0 June 2020 • The act of changing shareholder’s loan into Perpetual Dec 2020 Securities enhanced Suncity’s Net Asset Position and Drawn Unutilised Drawn Unutilised lowered the Group’s Gearing Ratio
14 Main Shareholder Mr. Chau has a great relationship with the Chinese Liaison Office
15 Development Update Tigre de Cristal Phase I upgrade ready; Phase II Planning & Design on its Way; Diversifying into the Philippines • Tigre de Cristal Phase I upgrade ready – Brand-new Suncity VIP room, restaurants and a new private club are now ready; • Phase II planning & design on its way – minor delays due to COVID-19; Continue development works with Phase II • Diversifying into the Philippines – Invest in one of the fastest-growing Asian gaming jurisdictions in Asia, the Philippines
Tigre de Cristal, Russia Westside City Project, Philippines
When Phase I & II are both running, Tigre de Cristal will triple in its number of When Westside City Project is ready, it will consist of: rooms, and double in number in its gaming facilities • Approximately 400 gaming tables • Over 1,200 electronic gaming machines • Over 450 five-star hotel rooms • Approximately 1,000 car park spaces • Pool club & leisure club, etc.
16 Development Update Continue Progress in Hoiana; Moving forward for Skiing and Diving Resorts in Japan
• Vietnam: To ensure fiscal survivability in Hoiana until travel resumes • Japan: Moving forward with plans to develop a diving resort in Miyako Islands, Okinawa; and a skiing resort in Niseko, Hokkaido • Other international locations: Actively exploring other overseas markets
Miyako Islands & Niseko, Japan Vietnam
• Miyako Islands: 40 villas and a hotel with more than 100 rooms Hoiana Phase 1 is not yet fully opened. Only the mass gaming floor, the VIP rooms, some • Niseko: 50 villas, 20 townhouses and a hotel with over 40 rooms hotel rooms and the golf course entered into preview on 28 June 2020.
Given current market situation, hotel rooms will be rolled out in phases according to the demand of the market to balance cost and benefits 17 Company Overview
Suncity Group Holdings Limited 1383.HK Flexibility is the HEART of Suncity’s Core Strategy
STATIC FLEXIBLE ADAPTABLE When needed In the present In the future
Balancing risk & reward
19 Corporate Structure
Suncity Group Holdings Ltd (HKEx: 1383)
100% 51% 34% PSE Stock code: SUN 100% Honour City SGMC
Integrated Resort in Vietnam Hotel development in Niseko, Japan Hotel & Integrated Resort HKEx Stock code: 102 69.66% Integrated Resort in the Philippines Consultancy Services
51% 100% 100% MSRD
Hotel development in Integrated Resort in Russia Miyako Islands, Japan
20 How Suncity Group Holdings Limited 1383.HK Evolves
• Acquired 51% equity interest of Suntrust (PSE:SUN), Suncity Group entered the Philippines gaming market to co-develop Westside City Project in Entertainment City, Manila 2012 2017 2019 • Became the single largest shareholder of Summit Ascent • Suncity Group Management and Consultancy Limited signed management agreements with Hoiana • Change of company name • Change of company name from • Acquired 51% equity interest of MSRD, the company that owned a scenic piece from Hong Long to Sun Sun Century Property Group of land in Miyako Island, Okinawa, Japan Century Group Ltd. Limited to Suncity Group Holdings • Became an eligible security for southbound trading under Shenzhen Stock Limited Connect
• COVID, travel bans and restrictions were in place • Suncity Group (private • Completed HK$600mn acquisition affecting plans junket business, not listed) agreement for an effective 34% • Hoiana soft opening on 28 June 2020 interest in Hoiana founded in Macau • Westside City Project in the Philippines construction ongoing • Suncity Group (HKEx : 1383) increased holdings of Summit Ascent (HKEx : 102) to 69.66% • Summit Ascent increased holdings of the Russian casino Tigre de Cristal to 77.5% from previously 60% 2007 2018 2020 • Acquired Niseko hotel project
21 Suncity’s Five Year Plan
Control In 5 years’ time, Suncity will have: by Suncity
# of Hoiana P1: 140 tables tables Westside City: 400 tables 2021 Tigre de Cristal P1+2: 140 tables
• Tigre de Cristal Phase I upgrade completed Total: Over680 • New Direct VIP and Premium mass business line set up in Tigre de Cristal • Miyako Islands resort and Niseko resort planning starts # of Hoiana P1: 1,000+ rooms rooms Westside City: 2,400 rooms* Tigre de Cristal P1+2: 470 rooms Miyako Island project: 40 villas + more than 100 hotel rooms Niseko project: 50 villas + 20 townhouses + • Full ramp up of Tigre de Cristal • Completion of the hotels & villas in over 40 hotel rooms Phase 2 & Westside City Project Miyako Islands and Niseko, Japan • Construction continues for Niseko / • Hoiana Phase 2 completion; Total: Over 4,000 Miyako Islands project in Japan subsequent phases of Hoiana starts
# of slots Hoiana: max 2,000 slots 2023 2024+ Westside City: >1,200 slots Tigre de Cristal P1+2: 630 slots
Total: Over 3,800
* Rooms include both Suncity’s hotel & Westside’s hotel 22 Investment Highlights
Why you should pay attention to Suncity Strongest Growth Pipeline in the Gaming Industry in Asia
RUSSIA
Strongest Growth Pipeline in the Gaming Niseko
Vladivostok industry in Asia:
JAPAN SOUTH CHINA KOREA
Miyako Islands MYANMAR Hong Kong And more… Van Don Macau
Hoi An Manila VIETNAM
PHILLIPINES 24 TIGRE DE CRISTAL Vladivostok, Russia Operates the largest IR in the Russian Federation
TIGRE DE CRISTAL, Vladivostok
Suncity (1383.HK)
69.66%
Summit Ascent (102.HK)
77.5%
Oriental Regent Limited
100%
G1 Entertainment LLC Holder of the gaming license Tenant under Lot 8, 9 and 10
26 Tigre de Cristal development summary
Development Largest integrated resort in the Russian Federation
Vladivostok, Integrated Entertainment Zone (IEZ) in the Russian Far East Location (Located 15 min from the Vladivostok airport)
Land area Phase 1 [Lot 9] Over 90,000 sqm; Phase 2 [Lot 10] Over 150,000 sqm;
Phase 1 Phase 1 + Phase 2 [Phase 1 GFA: 35,000 sqm] • 5 star hotel 121 rooms [Phase 2 GFA: over 65,000 sqm] • Electronic gaming machines 330 machines • Luxury hotel rooms Approx. 470 rooms • VIP tables 30 tables • Electronic gaming machines Approx. 630 electronic gaming Components • Mass tables 35 tables machines • Restaurant & Bars 4 • Gaming tables Approx. 140 tables • Spa 1 • Luxury duty free shopping • Fitness Center 1 • Oriental, Korean, Japanese, Western Restaurants • Beach club • Conference, performance, auditorium and banquet facilities
27 Strategically Located, Strong Tourism Growth & Low Tax
RUSSIA 3 hr flight Monthly Levy
2 hr flight
~USD1,700/ table / month ~USD100/ slot / month RUB125,000 / table / month RUB7,500 / slot / month
1 hr flight 45% 39% 39% 40% 35% 35% 35% 3 hr flight Vladivostok 30%
JAPAN 25% 2 hr flight SOUTH 25% 22% CHINA KOREA Busan 20% 20% 20% 15% 15% 12% 1 hr flight 10% Miyako Islands 5% MYANMAR Hong Kong 1.5% 1.5% Van Don Macau 0% Russia South Korea Singapore Philippines Malaysia Macau Hoi An Manila VIP Mass VIETNAM (as a % of 2019 GGR) PHILLIPINES 28 Tigre de Cristal Future Phases Masterplan
PHASE 3
OUTDOOR DINING & SWIMMING POOL PHASE 2
PLAZA PODIUM GARDEN
VISITORS’ WELCOME SUITE
PARKING PHASE 4 PHASE 1 (Existing)
29 Tigre de Cristal Future Phases Masterplan
PHASE 1 PHASE 3 PHASE 2 (Existing) PHASE 4
30 WESTSIDE CITY PROJECT Manila, Philippines Westside City Project is Located in the Heart of Entertainment City
500 tables 993 rooms OKADA 3,000 slots
Suncity (1383.HK) SUNCITY – WESTIDE CITY PROJECT
THEME OKADA MANILA PARK 51% 400 tables 2,400 rooms SunTrust (SUN:PM) >1,200 slots Suncity Entertainment Complex Westside City Resorts World Hotel CITY OF DREAMS MANILA WCRW Develops & Operates
Main Hotel Casino at Westside City Project SOLAIRE AYALA 449 tables GRAND WESTSIDE HOTEL CITY OF 800 rooms 1,883 slots DREAMS
301 tables 951 rooms 2,256 slots AYALA MALL SOLAIRE
32 Westside City Project Structure
Travellers / Westside
1) Gaming License 2) Land lease
SunTrust (PSE: SUN)
Land Lease and O&M Agreement
Land Lease Suntrust pays Westside & Travellers US$10.6m per year
O&M Agreement Suntrust pays Westside • 1% of VIP GGR • 3% of Mass + Slots GGR
33 Westside City Project Development Summary
Development Westside City Project, Manila, Philippines
Location Heart of Manila’s Entertainment City, 8 minutes to Ninoy Aquino International Airport
Land area Total gross floor area of over .200,000 sqm on a piece of land of approx. 44,000 sqm
Components Main Hotel Casino (to be built by SunTrust) Westside (to be built by Westside City Resorts World To be opened by 2023. Inc.) Main Hotel Casino owned under SunTrust • Gaming tables Approximately 400 tables • Shopping Mall 1 massive mall • Electronic gaming machines More than1,200 machines • Hotel rooms More than 2,000 rooms • 5-star Hotel rooms More than 450 rooms • Grand Opera House 1 Grand + 3 mini Theatres • Car Park spaces Approximately 1,000 spaces • Westside Avenue Restaurant & theatre district • Pool club & Night club • Car Park spaces 2,300 spaces • Signature restaurants & Broadway street
Highlights • Philippines is the best gaming market in Asia outside of Macau • Complementary relationship: Suncity brings gaming experience. Westside’s parent company, Megaworld Corporation, is a well-established real estate developer in the Philippines, with local expertise in building successful local shopping malls
34
Westside City Project – Architectural Designs
36 Westside City Project – Architectural Designs
37 Hoiana Hoi An, Vietnam Operates Vietnam’s most premium Integrated Resort
Hoiana The Master Plan
39 Hoiana is well-positioned for international tourism
• Pre-COVID, international arrivals increased 16.2% YoY in 2019 to 18 million visitors • Hoiana is excellently located near UNESCO World Heritage sites and world-class beaches • A lot of nearby tourist attractions within a one-hour travel radius • Normally, without the pandemic, Vietnam offers 15 days visa-free access for South Koreans; e-visa for Chinese visitors (US$25 for 30 days)
40 Hoiana development summary
Development Suncity is a primary developer of Hoiana, Vietnam’s largest casino and integrated resort
Quang Nam Province, Central Coast Vietnam Location (30km/50 minutes from Da Nang International Airport and 7km/15 minutes from Hoi An Ancient Town)
Land area Approx. 986 ha with 4 km pristine beach frontage
Phase 1: Phase 2: 165 hectares • Multiple beachfront resorts Exclusive Preview held on 28 June 2020 • Lake side resorts Hoiana Casino to be managed by Suncity Group • Lagoon hotels • Walking street Components • Gaming tables 140 tables • Duty Free • Electronic gaming machines 330 machines (max 2,000) • Beach club • Hotel rooms 1,000+ rooms • Diamond lagoon • Hoiana Shores Golf Club 18 holes • Entertainment and Vietnamese Cultural Villages
Our land development • Suncity is a primary developer, and would introduce other developers to develop Phase 2 and onwards together strategy • New World Residences 80% sold in 4 days marketing event primarily to gaming industry professionals • Suncity focuses on the value generated from the casino
41 Hotel Brands in Hoiana Phase 1
42 Hoiana Shores Golf Course
43 F&B Offerings in Hoiana
44 Hoiana – Public Areas
45 Hoiana Hotel & Suites
46 New World Hoiana Hotel
47 Japan
Miyako Islands, Okinawa & Niseko, Hokkaido Miyako Islands, Okinawa
Development Miyako Islands Resort Hotel Development
Location • 25 minutes from Miyako Shimojishima Airport (new airport), 19 minutes to Miyako Airport (old airport) • Near Sunayama beach
Site area 108,799 sqm
Plans Convert land use to resort hotel development • Build 40 villas • Build more than 100 hotel rooms
Highlights • An addition to Suncity’s travel products to enhance our customer stickiness • Scenic area in Miyako Islands • Up to 24 direct flights per from Miyako Airport and up to 17 direct flights per day from Miyako Shimojishima Airport to Tokyo, Osaka and Hong Kong
49 Niseko, Hokkaido
Development Niseko Resort Hotel Development
Location • International direct flights to the closest airport, New Chitose Airport, from Seoul (Incheon), Busan, Dalian, Shanghai, Beijing, Hong Kong, Yuzhno-Sakhalinsk, Guam, Taipei • An quiet area but with easy access to Kutchan
Site area 220,200 sqm
Plans • Build 50 villas • Build 20 townhouses • Build over 40 hotel rooms
Highlights • Situated at the most famous ski town in Hokkaido, renowned for the quality of powder snow, becoming the most popular vacation destination in Asia • Hokkaido Shinkansen (to be upon completion in 2030) and Expressway shorten the travel time to visit Niseko
50 IR MANAGEMENT CONTRACTS Hoiana, Vietnam VAN DON PROJECT, Vietnam Multiple Integrated Resort Management Contracts
Asset-light Expansion strategy offers synergies with our database
Call option to No CapEx acquire 25% required Hoiana, Hoi An, Vietnam Van Don, Vietnam
52 OTHER SEGMENTS Operation of Shopping Malls & Travel Segment Management and Operation of Shopping malls
Dongyang Xinguang Pacific
Shopping Mall in Zhejiang –
Project Phase 1 Shopping Mall of Xinguang Tiandi (新光天地一期購物廣場) Phase 2 Living Mall of Xinguang Tiandi (新光天地二期生活廣場)
Location Zhejiang Province
Description Phase 1 & 2, 620 units with a total floor area of 65,241.98 m2
Status Leased out, occupancy rates of Phase 1 & 2 as at 31 December 2020 were approximately 87% and 79%, respectively
54 Growth Opportunity Flexibility is at the HEART of Suncity’s core strategy
At Suncity, we are flexible We fit into any environment with And if opportunity requires, we good opportunities can even transform
56 Synergies among our different IR locations
If the customer wants this experience:
Suncity could take them to:
At the same time, Suncity could have access to local resources
57 Interested in all Asian Gaming Jurisdictions so that Synergies among different IR locations could be created
Macau Vietnam South Korea Malaysia
RUSSIA
2019 GGR 2019 GGR 2019 GGR US$0.3B** 2019 GGR US$2.29B US$2.95B US$36.6B
Cambodia Philippines Japan Vladivostok
JAPAN Est. GGR SOUTH 2019 GGR US$15B CHINA KOREA Busan 2019 GGR US$1.7B* US$4.3B
Miyako Russia Far East Singapore Macau Islands Vietnam MYANMAR Hong Kong Cambodia Macau Russia Philippines
Hoi An South Korea Manila 2019 GGR VIETNAM Japan Sihanoukville 2019 GGR CAMBODIA US$0.1B Myanmar PHILLIPINES US$4.6B And more….
Source: DICJ; Vietnam Decree 108/2015/ND-CP for tax calculation basis; broker reports; Cambodia figure only includes public data. From MOF by 8 licensed casinos only 58 Interested in all Asian Gaming Jurisdictions so that Synergies among different IR locations could be created
Country Macau Vietnam Philippines Singapore Malaysia South Korea Russia Far East Cambodia
2019 gross gaming 36,637 380(Est.) 4,302 4,568 2,285 103 1,719 revenue (US$mn) tba Provisional pilot Only allow in Locals gaming Yes, with an entry Yes licenses for locals Yes Yes Kangwon Land; Yes No allowed levy can be applied Others No
Yearly growth % 5.5% 60% 14.2% 1.4% 5.8% 8.6% 11.5% 16.1%
Primarily mainland For Hoiana, primarily Primarily Locals and Locals for Kangwon Naga: businessmen; Chinese; businessmen Slots & Mass: Locals; Target Customers tourists from South some tourists; Local Tourists Locals Land; Tourists for all Sihanoukville: tourists and affluent middle VIP: Tourists East Asia businessmen others & businessmen class
39% 39% 35%* 35% 35%
Tax Rate 25% 22% 20% 20% 14% 15% 12% 7% 4% 1.5% 1.5%
Source: Estimates from Goldman Sachs investment research; Government regulations; public data; * Vietnam’s official tax rate is 35%, but commission deductible 59 Leverage on Suncity’s Exceptional Marketing Programmes
Shopping Entertainment
Global Travel
Dining 60 Leverage on Suncity’s Group-wide customer access
Members spent HK$1.7bn in Suncity Group has over 190,000 members shopping & entertainment in 2019
Data Information Insight
61 The Network Effect that synergises the business
Database from Experienced Global integrated Huge Value to be SunTravel Management Team resort locations unlocked
62 Strong Support from Main Shareholder
Strong support from main shareholder
• Biggest supporter of Suncity Group Holdings Limited Mr Chau Cheok Wa (1383.HK) (Alvin) • Through his company with his investment partner, Mr Chairman & Executive Chau has an effective control of 75% of Suncity Group Director of 1383.HK; Holdings Limited Founder of Suncity Group
63 Highly Experienced Management and Execution Teams
Mr Chau Cheok Wa Mr Lo Kai Bong (Andrew), Mr Au Chung On (John), Mr Manuel Assis Da Silva, Mr. David Chua (Alvin), Chairman & Executive Director Executive Director Executive Director Executive Director Executive Director and CEO, Summit Ascent
• Executive Director and • Became the Chairman • Experienced in the • Previous head of the Chief Investment Officer of the Company since gaming industry Gaming Inspection and of Suncity Group & in Nov 2011 • Previously he was the Coordination Bureau charge of overseas Ms. Gillian Murphy • Significant Experience Senior Director of (“DICJ”) from 2003 – development, corporate in managing VIP clubs Business Development, 2016, for more than 43 management and M&As and at integrated Director of Operations years during which he Senior Vice President, Non • Currently he is also the resorts at one of the major was responsible for Gaming Executive Director and • Currently, he is also gaming overseeing the casino Deputy Chairman of the Chairman of concessionaires in operation in Macau Summit Ascent (102.HK) Summit Ascent Macau • An expert on casino • Previously he was the (102.HK) • Was a member of game rules, internal executive director of Mr. Michael French • Previously an gaming related controls, junket Sun International executive director and committee formed by control and VIP gaming Resources (8029.HK) Chairman of Sun the six concessionaires operations Senior Vice President, Gaming International to provide advice to Resources (8029.HK) the regulatory bodies of the Macau government Mr. Stylianos Tsifetakis
COO, Tigre de Cristal
64 Key differentiators
Summary Summary - Why Suncity Group Holdings Limited (1383.HK)?
Started in Macau, Transforming into a Low Valuation Compared Flexible IR Expansion Worldwide Vision Global Operator to other Gaming Operators Strategy
Suncity started in Macau Hoiana is the first flagship IR Lots of projects internationally Management Contracts offers a A vision to expand as an that Suncity runs overseas; that are not priced in yet; flexible global IR expansion integrated resort developer and More global projects are on Relatively low valuation strategy. Highly flexible and operator worldwide their way compared to other global adaptable in expansion gaming operators
High Flexibility and Leverage on Suncity Network Effect on Experienced Adaptability customers’ database Multiple IR locations Management
If an investment opportunity is good; Suncity’s customer database is If customers want to ski, Suncity Senior management have extensive we co-invest; valuable as we know what brings them to Vladivostok; If gaming industry experience If there is a perceive higher risk, we services and which location customers want to go to the beach, have the power to manage the project each customer likes most Suncity brings them to Vietnam
66 Appendix Awards and Recognition
Awards Institution SUNCITY GROUP HOLDINGS LIMITED Best IR Company – Mid Cap Hong Kong Investor Relations Association Best IR by Chairman / CEO – Andrew Lo – Mid Cap Best Investor Meeting – Mid Cap All-Asia Executive 2020 Institutional Investor “Honored Company” “Best IR Professionals” The Best Investor Relations Case Study Award 3rd Annual China Excellence IR, IRSC International Road Show Centre 2020 China’s Top 500 Listed Companies Asiabrand, Brand Management Expert Committee of China-Asia Economic and Asiabrand.com TIGRE DE CRISTAL, RUSSIA Corporate Travel Awards 2020 (Hotel Resort of the Year) CEO Today Magazine Winner of the XVI Business Prize of Primorsky Krai (Company of the Year Zolotoy Rog 2019) Top 5 nominees of “Russia’s Leading Resort 2019” World Travel Awards HOIANA, VIETNAM Best Integrated Resort of the Year - Best of the Best Awards 2020 Robb Report Asia's Leading Tourism Development Project 2020 World Travel Awards Best Companies to Work for in Asia 2020 HR Asia World's Best New Golf Course 2020 World Golf Awards
68 Hoiana Fully Supports the Local Community
Hoiana actively supported local authorities in preventing and controlling the pandemic
Donated 16,000 face masks to Donated 15,000 face masks to Children of Vietnam localities (Thang Binh, Duy Xuyen) Financial sponsor to Quang Nam province (COV) to distribute to students in mountainous areas in their preventive activities which beneficiary for medical staffs in Quang Nam and local people
69 Project Cost of selected Integrated Resorts in different markets
Project Cost of selected Integrated Resorts in different markets (US$ Million) $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Hoiana Phase 1 (2021), Vietnam $1,000 Westside City Project Main Hotel Casino (2023) $1,000 Tigre de Cristal Phase 1 (2015), Russia $195 Tigre de Cristal Phase 2 (2023), Russia $200 Galaxy Macau Phase 3 & 4 (Phase 3 opening 2021), Macau $6,200 Grand Lisboa Palace (2021), Macau $5,000 Sands Cotai Central (2012), Macau $4,480 Wynn Palace (2016), Macau $4,400 MGM Cotai (2018), Macau $3,432 COD Macau (2009), Macau $3,032 The Parisian (2016), Macau $2,849 Venetian (2007), Macau $2,549 Galaxy Macau Phase 2 (2015), Macau $2,500 Galaxy Macau Phase 1 (2011), Macau $2,100 Marina Bay Sands (2010), Singapore $5,585 Resorts World Sentosa (2010), Singapore $3,226 The Grand Ho Tram Resort (2013), Vietnam $600 Corona Phu Quoc Vietnam (2019), Vietnam $2,100 Naga3 (2025), Cambodia $3,515 Naga2 (2017), Cambodia $700 NagaWorld (2005), Cambodia $227 Okada Manila (2017), Philippines $2,700 Solaire (2013), Philippines $1,200 Resort World Manila (2009), Philippines $1,000 COD Manila (2014), Philippines $850 Resorts World Genting (1971), Malaysia $1,339 Naga Vladivostok (2021), Russia $300 Shambala Phase 2 (2022), Russia $62 Shambala Phase 1 (2020), Russia $45
70 Disclaimer • The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to this document. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
• This document appears for information purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for the securities of the Company.
• The information of this document is intended to be accessed by Professional Investors only (or such similar persons as the term is defined under the laws of other relevant jurisdictions). For this purpose, “Professional Investor” is defined under the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong), as may be amended from time to time. Thanks Suncity Group Holdings Limited 1383.HK
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