Annual Report 2020
Total Page:16
File Type:pdf, Size:1020Kb
GENTIN G M ALAYSIA BERHAD 198001004236 (58019-U) ANNUAL REPORT 2020 ANNUAL GENTING MALAYSIA BERHAD 198001004236 (58019-U) 24th Floor, Wisma Genting Jalan Sultan Ismail 50250 Kuala Lumpur, Malaysia ANNUAL REPORT 2020 T : +603 2178 2233 / 2333 2233 GENTING MALAYSIA BERHAD F : +603 2161 5304 198001004236 (58019-U) www.gentingmalaysia.com www.rwgenting.com about GENTING MALAYSIA VISION To be the leading integrated resort operator in the world. MISSION We are committed towards providing the most delightful and memorable experiences to our customers. We aim to generate sustainable growth and profits, and to consistently enhance our stakeholders’ value. CORE VALUES • HARD WORK • HONESTY • HARMONY • LOYALTY • COMPASSION CORPORATE PROFILE Genting Malaysia Berhad (“Genting Malaysia” or the “Group”) (www.gentingmalaysia.com) is one of the leading leisure and hospitality corporations in the world. Incorporated in 1980, Genting Malaysia was subsequently listed on Bursa Malaysia’s Main Market in 1989. Genting Malaysia is a renowned provider of premier leisure and entertainment services and has a market capitalisation of RM15 billion as at 31 December 2020. Genting Malaysia owns and operates major resort properties including Resorts World Genting (“RWG”) in Malaysia, Resorts World Casino New York City (“RWNYC”) and Resorts World Catskills (“RWC”) (which is 49%-owned via an associate company) in the United States (“US”), Resorts World Bimini (“RW Bimini”) in the Bahamas, Resorts World Birmingham and over 30 casinos in the United Kingdom (“UK”) and Crockfords Cairo in Egypt. Genting Malaysia also owns and operates two seaside resorts in Malaysia, namely Resorts World Kijal in Terengganu and Resorts World Langkawi on Langkawi island. With about 10,500 rooms across seven distinct hotels, RWG is Malaysia’s premier integrated resort destination. The resort also features wide-ranging leisure and entertainment facilities, including gaming, theme park and amusement attractions, dining and retail outlets, as well as international shows and business convention facilities. Genting Highlands Premium Outlets (a joint venture between Genting Plantations Berhad and Simon Property Group) at the mid-hill further complements the various attractions at RWG. Additionally, the highly anticipated new outdoor theme park, Genting SkyWorlds, will add to RWG’s extensive entertainment offerings upon completion. In the UK, Genting Malaysia owns and operates over 30 casinos, making it one of the largest leisure and entertainment businesses in the country. The Group also operates an online gaming platform comprising an online casino and sports book operation which provides customers a seamless multi-channel gaming experience. Additionally, Genting Malaysia operates Resorts World Birmingham, the first integrated leisure complex of its kind in the UK, offering gaming and entertainment facilities, retail and dining outlets and a 182-room four-star hotel. In the Middle East, Crockfords Cairo, an exclusive casino nestled within the posh surroundings of The Nile Ritz-Carlton Hotel in Cairo, is the Group’s first venture into the region. In the US, Genting Malaysia’s RWNYC, the first and only video gaming machine facility in New York City, and RWC, a premium destination resort situated within the scenic Catskills Mountains in the State of New York, collectively offer the ultimate gaming, hospitality and entertainment experience, featuring a live table games casino, over 400 rooms across 2 hotels, video gaming machines, diverse bar and restaurant choices, exciting shows and memorable events. Additionally, the Group embarked on an expansion project at RWNYC to expand its facilities and attractions, including the development of a new upscale 400-room hotel. Over in Miami, the Group owns the 527-room Hilton Miami Downtown which sits on 30 acres of prime freehold waterfront land. In the Bahamas, the Group operates RW Bimini, which features a casino, Hilton at RW Bimini, restaurants and bars, various resort amenities as well as the largest yacht and marina complex on the island surrounded by turquoise waters and white- sand beaches. Genting Malaysia is a member of the Genting Group, one of Asia’s leading and best-managed multinational companies. The Genting Group is led by Tan Sri Lim Kok Thay, a visionary entrepreneur who has successfully established the Resorts World brand as a leader in the leisure and hospitality sector in Malaysia, Singapore, the Philippines, the US, the Bahamas and the UK. Tan Sri Lim Kok Thay also has significant investments in other industries globally including oil palm plantations, property development, power generation, oil and gas, cruise and biotechnology. CONTENTS FINANCIAL STATEMENTS: 02 Chairman’s Statement / 71 Income Statements Penyata Pengerusi / 主席文告 72 Statements of Comprehensive Income 10 Board of Directors 73 Statements of Financial Position 12 Directors’ Profile 75 Statements of Changes in Equity 22 Principal Executive Officers’ Profile 78 Statements of Cash Flows 23 Management & Corporate Information 83 Notes to the Financial Statements 24 Group Corporate Structure 159 Statement on Directors’ Responsibility 25 Corporate Diary 159 Statutory Declaration 26 Financial Highlights 160 Independent Auditors’ Report 27 Five-Year Summary 166 List of Properties Held 28 Management’s Discussion and Analysis of Business Operations and 169 Analysis of Shareholdings Financial Performance 173 Notice of Annual General Meeting 31 Awards and Accolades 177 Statement Accompanying Notice of 32 2020 Highlights Annual General Meeting 38 Sustainability Statement Form of Proxy 45 Corporate Governance Group Offices Overview Statement Genting Premier Brands 57 Audit Committee Report 60 Statement on Risk Management and Internal Control 63 Directors’ Report 70 Statement by Directors 2 CHAIRMAN’S STATEMENT 2020 had been a tumultuous year as the world confronted an unprecedented health crisis, one that profoundly impacted the global economy and its citizens. Domestic economic conditions have similarly been affected, and Malaysia’s GDP contracted by 5.6% as the country grappled with the consequences of Coronavirus Disease 2019 ("COVID-19")-related containment measures both locally and abroad. Nevertheless, a company’s strength is tested during times of adversity. Throughout its history, the Group has consistently built and managed its operations around five inviolable Genting Core Values – hard work, honesty, harmony, loyalty and compassion. It is these values that have enabled us to remain strong, focused and resilient amid the uncertain and challenging business landscape. On behalf of the Board of Directors (“Board”), I present to you the Annual Report and Audited Financial Statements of the Group for the financial year ended 31 December 2020 (“FY2020”). Against the backdrop of the COVID-19 pandemic, the Group recorded a 56% decline in revenue to RM4,528.8 million. Dear Shareholders, The decrease was primarily caused by the unprecedented disruptions to the Group’s leisure and hospitality operations worldwide arising from the outbreak of COVID-19. Despite It is a pleasure and an honour for me the challenging conditions, the Group registered adjusted to address you in my inaugural year as earnings before interest, taxation, depreciation and amortisation (“adjusted EBITDA”) of RM350.3 million. Chairman of Genting Malaysia Berhad The Group reported a net loss of RM2,361.5 million in FY2020 after taking into consideration depreciation and (“GENM”) and its group of companies amortisation, impairment losses and finance costs. (“Group”). GENTING MALAYSIA BERHAD | ANNUAL REPORT 2020 CHAIRMAN’S STATEMENT 3 The global tourism, leisure and hospitality, and gaming Our business in the United Kingdom has likewise faced industries are among the sectors hardest hit by this similar challenges. Whilst a majority of the Group’s pandemic. For the first time in our history, we had to land-based gaming operations resumed with reduced temporarily close all our resort operations worldwide capacity since mid-August 2020, the sustained periods from mid-March 2020 in compliance with the respective of uncertainty, curfew and further regional lockdowns government directives. The ‘new normal’ of coexisting with that followed which resulted in the periodic closures of the pandemic also meant that our global operations had to our venues since October 2020 have adversely impacted reopen on a staggered basis with strict operating protocols contributions from this segment. Nonetheless, the Group in place to protect our customers and employees. Adapting is confident that the comprehensive measures in place to this new reality necessitated some very difficult emphasising cost optimisation and business efficiencies decisions, and we recalibrated our operating structure will provide the framework for the Group to pivot quickly and rightsized our workforce to ensure the long-term once the casinos reopen. Meanwhile, Crockfords Cairo has sustainability of our business. We are confident that this resumed operations since 18 October 2020. reorganisation places us in a better position to capitalise on the eventual recovery of the leisure and hospitality In the United States, we were encouraged by the positive sector, in addition to creating a stronger platform for future reception to the reopening of Resorts World Casino New profitability and long-term shareholder value. York City (“RWNYC”) and Resorts World Catskills (“RW Catskills”) since 9 September 2020 under a 21-point safety In Malaysia, our properties recommenced