4Q 2015 BUSINESS PERFORMANCE
Premium Lifestyle Leading Company DISCLAIMER This material has been prepared for investors’ convenience, based on 4Q15 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. CONTENTS 01 CORPORATE OVERVIEW 1
02 BUSINESS PERFORMANCE AND OUTLOOK 8
03 APPENDIX 13 CORPORATE OVERVIEW INTRODUCTION VISION / HISTORY / AWARDS 01 BUSINESS PORTFOLIO BUSINESS SITE OVERVIEW INTRODUCTION
THE SHILLA is an affiliated company of the Samsung Group, providing the premium customer services in the areas of Retail & Service business.
Electronics Finance Retail & Service Chemical Others
ELECTRONICS LIFE INSURANCE THE SHILLA HEAVY-INDUSTRIES BIOLOGICS
ELECTRO-MECHANICS FIRE&MARINE INSURANCE C&T ENGINEERING BIOEPIS
SDS CARD WORLD WIDE FINE-CHEMICALS MEDICAL CENTER
SDI SECURITIES S-1 BP-CHEMICALS MEDISON
DISPLAY ASSET MANAGEMENT Welstory SERI
Major Shareholders of The Shilla: Samsung Life Insurance 7.8%, Samsung Electronics 5.1%, Samsung Securities 3.1%, Samsung Card 1.3%, Samsung SDI 0.1%
2 VISION
Hotel Shilla aspires to become a Premium Lifestyle TRAVEL RETAIL Leading Company that offers clients the best options based on dignity and trust.
LEISURE HOTEL The company will provide optimal services across its PREMIUM LIFESTYLE business range, including travel retail, hotel, leisure, LEADING COMPANY F&B, and business travel management(BTM) to improve the lifestyles of clients.
BTM F&B
3 HISTORY AWARDS
1979 Seoul Hotel open 2006 Presidential Award at Korea Retail Ceremony
1986 Seoul Duty Free open 2008 Gazette, The Best hotel in Seoul 1989 Jeju Duty Free open Institutional Investor, The world’s Top 100 Hotel(1st in Asia) LHW Leader’s Club, Golden award 1990 Jeju Hotel open JALPAK, The Best Hotel 1991 IPO(Korea Exchange) 2009 Zagat, The Best Hotel in service sector 2006 Jinji Lake Hotel(China) open TTG Travel Award, The Best City Hotel in Seoul 2008 Incheon Int’l Duty Free open Institutional Investor, The World’s Top 100 Hotels
2010 Cheongju Int’l Duty Free open 2010 Institutional Investor, The Best Hotel in Seoul
2011 Gimpo Int’l Duty Free open 2011 NCSI, No.1 Hotel in service sector L/V at Incheon airport open 2012 Travel+Leisure, The World’s Best Award Asia 16th 2012 SweetMay in Macao open 2013 KCSI, The Best Duty Free Store 2013 Changi Int’l Duty Free(Singapore) open 2014 NCSI, The Best Company 2014 Shilla Stay Co., Ltd established Macao Int’l Duty Free open 2015 Interbrand, The Best Korea Brands 2015 NSCI, No.1 Hotel in hotel sector 2015 HDC Shilla Co., Ltd. established Shilla I Park Duty Free established 4 MILESTONE
5 BUSINESS PORTFOLIO
Travel Retail Hotel Lifestyle & Leisure
Seoul Downtown DF The Shilla Seoul BTM
Jeju Downtown DF The Shilla Jeju CFC
Shilla I Park Downtown DF Jinji Lake Shilla Hotel in China (Management)
Internet DF Samsung Hotel Geoje (Management)
Incheon Int’l Airport DF Shilla Stay (Management)
Gimpo Int’l Airport DF
Changi Int’l Airport DF in Singapore
Macao Int’l DF
SweetMay in Macao, Hongkong 6 BUSINESS SITE OVERVIEW
Travel Retail Hotel Lifestyle & Leisure Seoul DF Seoul BTM 378 Brands | 7,177sqm 462 Rooms (43.3sqm per room) CFC Jeju DF VANTT Seoul Hotel 248 Brands | 6,496sqm Jeju Seocho Reports Center Seoul DF 429 Rooms Gimpo DF Incheon DF (44.6sqm per room) Incheon DF Shilla I park DF 339 Brands | 2,724sqm
Gimpo DF Jinji Lake, China 85 Brands | 400sqm SINGAPORE Changi DF Samsung Hotel, Samsung Hotel Changi DF Geoje SweetMay 218 Brands | 5,891sqm Hong Kong Jeju Hotel Shilla Stay Macau Jeju DF DF Macao DF Dongtan, Yeoksam, Jeju, 81 Brands | 1,099sqm Seodaemun, Ulsan, Mapo, SINGAPORE Jinji Lake SINGAPORE Shilla I Park DF Gwanghwamun 342 Brands | 6,274sqm
7 BUSINESS PERFORMANCE BUSINESS PERFORMANCE AND 02 AND OUTLOOK OUTLOOK BY BUSINESS SEGMENT BUSINESS PERFORMANCE (4Q 2015) Non-consolidated
■ Sales & OP decreased by △2.1% YoY, △60.4% YoY consecutively
(KRWb) Sales Operating Profit 4Q14 4Q15 YoY 3Q14 QoQ
Sales 732.7 717.3 -2.1% 604.8 18.6%
Travel Retail 658.7 636.5 -3.4% 521.6 22.0% -2.1% -60.4% 732.7 Hotel 62.9 66.4 5.6% 69.3 -4.2% 717.3 18.6% 59.8 Life/leisure 11.1 14.4 29.7% 13.9 3.6% 604.8 OP 59.8 23.7 -60.4% 17.1 38.6%
Travel Retail 64.7 27.1 -58.1% 15.9 70.4%
Hotel -6.0 -5.5 Loss Decreased -1.0 Loss Increased 23.7 38.6% Life/leisure 1.1 2.1 90.9% 2.2 -4.5% 17.1
OP Margin 8.2% 3.3% - 2.8% -
4Q14 4Q15 3Q15 4Q14 4Q15 3Q15
9 BUSINESS PERFORMANCE (4Q 2015) Consolidated
■ Sales decreased by 4.2% YoY & OP increased by △57.4% YoY
(KRWb) Sales Operating Profit 4Q14 4Q15 YoY 3Q15 QoQ
Sales 813.7 847.6 4.2% 730.9 16.0% -57.4% 4.2% 847.6 Travel Retail 734.5 757.2 3.1% 641.7 18.0% 26.5 813.7 Hotel 66.3 73.3 10.6% 73.2 0.1% 16.0% Life/leisure 12.9 17.1 32.6% 16.0 6.9% 730.9 OP 26.5 11.3 -57.4% 2.8 303.6%
Travel Retail 30.9 14.5 -53.1% 1.8 705.6% 11.3 Hotel -6.1 -5.9 Loss Decreased -1.8 Loss Increased
Life/leisure 1.7 2.7 58.8% 2.8 -3.6% 303.6% 2.8 OP Margin 3.3% 1.3% - 0.4% -
4Q14 4Q15 3Q15 4Q14 4Q15 3Q15
10 TRAVEL RETAIL BUSINESS Consolidated
■ Sales Increased by 3.1% YoY & OP decreased by △53.1% YoY 4Q Review ■ As Chinese inbound traffic was gradually recovering from MERS, Sales (KRWb) Operating Profit (KRWb) sales of the Travel Retail Business increased by 3.1% YoY.
757.2 1Q Outlook 734.5 30.9 641.7 291.0 ■ A business environment is expected to be improved 339.9 314.7 thanks to domestic and foreign demand for travel increases as Chinese inbound rises during the Spring Festival season.
466.2 14.5 394.6 327.0
1.8
4Q14 4Q15 3Q15 4Q14 4Q15 3Q15
Downtown Airport
11 HOTEL BUSINESS Consolidated
■ Sales increased by 10.6% YoY & loss in OP decreased. 4Q Review ■ With the newly-opened sites of Shilla Stay, Sales (KRWb) OP (KRWb) sales of the Hotel Business increased by 10.6% YoY.
■ Quartely Rate of Occupancy
73.3 73.2 2014 2015 17.0 66.3 15.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 8.7 Seoul 50% 67% 63% 66% 50% 61% 60% 67% 17.1 17.1 23.8 Jeju 82% 91% 89% 85% 81% 76% 90% 84%
40.5 39.2 -1.8 1Q Outlook 33.9 ■ As strengthening the service & package products to increase the occupancy rate, the better performance is
-6.1 -5.9 expected to see gradually.
4Q14 4Q15 3Q15 4Q14 4Q15 3Q15
Seoul Jeju Others
12 APPENDIX INVESTMENT PERFORMANCE AND MAJOR FINANCIAL RATIOS 03 OWNERSHIP STRUCTURE (KRWb)
ANNUAL CAPEX Y2013 Y2014 Y2015
Capex 221.5 106.8 103.3
﹡ Non-Consolidated, Accrued in period (KRWb) Debt Equity Current Assets Current Liabilities MAJOR FINANCIAL Y2013 Y2014 Y2015 Debt/Equity Ratio 152% 161% 193% RATIOS 1,432.8 Liabilities 1,033.5 1,177.5 1,432.8 1,177.5 Equity 678.6 730.0 743.9 1,033.5 1,023.6 Current Ratio 164% 189% 176% 823.0 Current Assets 709.1 823.0 1,023.6 709.1
Current Liabilities 432.5 435.2 582.8 730.0 743.9 6,786 EBITDA/Sales 5.7% 7.0% 4.6% 582.8 EBITDA 130.9 202.8 151.2 432.5 435.2
Sales 2,297.0 2,909.0 3,251.7
Y 2013 Y 2014 Y 2015 ﹡ Consolidated
14 OWNERSHIP STRUCTURE
NPS Affiliates 13.4% 17.4%
Others Foreign Investors 40.0% 29.2%
As of December 31, 2015 THANK YOU
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