CHAIRMAN’S REPORT | 4 REVIEW OF OPERATIONS - 2019 SUMMARY | 6 BOARD OF DIRECTORS | 18 CORPORATE MANAGEMENT | 19 CORPORATE GOVERNANCE | 20 MANAGEMENT DISCUSSION AND ANALYSIS | 22 AUDITOR’S REPORT | 56 AUDITED FINANCIAL STATEMENTS | 59 INVESTOR RELATIONS | 107 CHAIRMAN’S REPORT Good morning, ladies and gentlemen: Although this annual meeting is to review the results and performance of the Company for 2019, the global pandemic and subsequent lockdowns prevented us from holding our scheduled physical meeting last April. Therefore, we are almost halfway into 2020, and our results have been in the public domain for months. I will, therefore, just recap 2019, and move on to the more pressing issue that is the pandemic and its global impact. Financial Performance Bloomberry’s consolidated Gross Gaming Revenue or GGR was P60.374 billion, higher by 17 percent compared to P51.456 billion in 2018. GGR at Solaire hit P59.801 billion, growing by 17 percent and faster than the growth of the entire Philippine gaming market. Revenue growth was supported by a high VIP win rate and our solid performance in the mass gaming segment. In Korea, GGR at Jeju Sun increased by 18 percent despite the absence of most of the property’s non-gaming facilities which were undergoing renovations. Solaire recorded its highest annual levels of mass table drop and electronic gaming machine (EGM) coin-in. Mass table drop increased by 15 percent to P51.467 billion. EGM coin-in rose by 20 percent to P255.103 billion. VIP volumes were down to P771.417 billion, from a record P810.233 billion in 2018. Non-gaming revenues grew 21 percent to P8.154 billion from P6.756 billion. CHAIRMAN’S REPORT Operating costs and expenses were efficiently managed and grew by only 13 percent. EBITDA increased 33 percent to P19.830 billion, from P14.895 billion in 2018. Solaire’s EBITDA was P20.294 billion, a growth of 34 percent. Jeju Sun recorded negative EBITDA of P463.9 million. Net profit grew to P9.921 billion from P7.166 billion, higher by 38 percent despite foreign exchange losses and higher interest expenses. Earnings per share was 90.3 centavos in 2019, a 39 percent increase. Going forward The record performance of the Company in 2019 will no longer reflect our short term future performance, until the pandemic is over, in one way or another, whether it runs its course, or a vaccine is created in mass quantities, when this may happen, is simply a wild guess at this point. Solaire shut down when the government declared an Enhanced Community Quarantine or lockdown that began in March 14 of this year. The hotel part remained open to house long term staying guests who elected to stay in the country rather then fly out once the lockdown was implemented. At this moment, we are still with a general quarantine, and the economy has been partially reopened to limited capacity and movement with restrictions. Solaire just opened to very limited capacity a few days ago on June 15, and it is still early days to give any indication on how the business will perform. Our number one priority now is to ensure the safety and well-being of our guests and employees. We have invested heavily and have gone to extreme lengths to make Solaire and our guests as sanitized and safe as possible. We have taken every precaution and beyond with meticulous attention to the most minute detail to achieve this. We have acquired and installed the most technologically advanced cleaning and disinfecting devices, materials, and equipment globally available. We are testing and training all our employees. suppliers. contractors three times a month in our own adjacent testing facility, and will continue to do this for the foreseeable future. I am confident when I say that there is no safer facility for the public in the country today then Solaire. We have acquired and installed the most technologically advanced cleaning and disinfecting devices, materials, and equipment globally available. We are testing and training all our employees. suppliers. contractors three times a month in our own adjacent testing facility, and will continue to do this for the foreseeable future. I am confident when I say that there is no safer facility for the public in the country today then Solaire. Business development We are continuing with the construction of Solaire North in Quezon City which, given the delay due to the lockdown, should be completed by the end of 2022 or early 2023. Construction has partially restarted and the period of lockdown can be reasonably added to the completion date. We strongly believe that the timing of Solaire North could well coincide with a full economic recovery. But even during this crisis, we are still on the lookout for opportunities whose potential and valuation makes sense in this environment. Given the great uncertainty, we will exercise prudence and restraint in managing our balance sheet and finances, and when this crisis has been overcome, we look forward to being an even stronger company. Thank you. ENRIQUE K. RAZON JR. Chairman and Chief Executive Officer BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT 5 REVIEW OF OPERATIONS SOLAIRE: OFFERING AN ALL IN EXPERIENCE REVIEW OF OPERATIONS OF REVIEW Sky Tower Suite Ambassador Suite Private Jet Charter VIP Gaming Salon Chairman’s Villa Pool Area BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT 7 REVIEW OF OPERATIONS REVIEW OF OPERATIONS Key Financial Charts Key Financial Charts Audited Figures Audited Figures 8 BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT 9 REVIEW OF OPERATIONS REVIEW OF OPERATIONS REVIEW OF OPERATIONS REVIEW OF OPERATIONS PROPERTY UPDATES PROPERTY UPDATES Baccarat Room & Bar Retail Players Stadium New Outlets Opened in 2019 Baccarat Room & Bar Players Stadium 10 BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT 11 REVIEW OF OPERATIONS REVIEW OF OPERATIONS REVIEW OF OPERATIONS PROPERTY UPDATES PROPERTY UPDATES Jeju Sun Refurbishment Jeju Sun Refurbishment Main Lobby Ballroom Jeju Sun Facade Main Gaming Area Standard Double Bed Room Eclipse Sports Bar Garden Buffet Inside Dome 12 BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT 13 REVIEW OF OPERATIONS REVIEW OF OPERATIONS AWARDS AWARDS Bloomberry Resorts Corporation Solaire Resort Forbes Travel Guide 5 Star Award for 2019 2019 Tripadvisor Travelers’ Choice Award 2019 Corporate Excellence Award for Hospitality, 2019 Most Outstanding Company in the Gaming Sector - Asiamoney Food Service & Tourism Industry - Enterprise Asia 2019 G2E Asia Awards, Best Regional Asian Integrated Resort Philippine Tatler T Dining Top 20 Best Restaurants 2019 Best Investor Relations Company Corporate Governance Asia 2019 Asia’s Best Chief Finance Officer Award 9th Asian Excellence Award 9th Asian Excellence Award 2019 Industrial Safety Award of Excellence Safety Organization of the Philippines Inc 14 BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT 15 REVIEW OF OPERATIONS REVIEW OF OPERATIONS 2019 EVENTS 2019 EVENTS The Phantom of the Opera Sergio Mendes: Valentine Concert Solaire Pool BBQ Festival Culinary Masters: Chef Justin Quek DRUM TAO in Manila Harry Potter in Concert Gerald Santos: the Homecoming Concert Into the 80s Concert Culinary Masters: Chef Jun Yukimura Sweeney Todd Solaire Oktoberfest CATS the Musical GFORCE Project: Summer Workshop Sheena Easton Live in Manila Binondo A Tsinoy Musical Kwerdas: Noel Cabangon & Ice Seguerra Michael Learns to Rock in Manila Baby Shark Live Musical JulieSIngs the Divas MastroRy Peppa Pig Live 16 BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT BLOOMBERRY RESORTS CORPORATION 2019 ANNUAL REPORT 17 Corporate Management Enrique K. Razon Jr. Chairman of the Board and Chief Executive Officer Fritz Jerrold Lacap Vice President for Business Development Thomas Arasi and Corporate Planning President and Chief Operating Officer Arnold Svahn F. Rivas Estella Tuason-Occeña Vice President for Administration ENRIQUE K. RAZON JR. Chief Financial Officer and Treasurer Chairman and Chief Executive Officer Jonas Isaac R. Ramos Gerard Angelo J. Festin Director for Investor Relations Vice President for Controllership JOSE EDUARDO J. ALARILLA Vice Chairman Property Management Enrique K. Razon Jr. Lorenzo Manalang BOARD OF DIRECTORS BOARD Chairman of the Board and Chief Executive Officer Vice President for Brand and Marketing DONATO C. ALMEDA Vice Chairman for Construction and Regulatory Affairs Thomas Arasi Kel Telford President and Chief Operating Officer Vice President for Information Technology MANAGEMENT CORPORATE Cyrus Sherafat Mario Ellefsen THOMAS ARASI Executive Vice President for Casino Marketing Vice President for Surveillance President and Chief Operating Officer Laurence Upton Michael Ray Aquino Executive Vice President for International Marketing Vice President for Security CHRISTIAN R. GONZALEZ David Batchelor Knut Becker Senior Vice President for Resort Operations Vice President for Food and Beverage Board Director Jose Mari Gajitos Michael Dinges Senior Vice President for Administration Vice President for Culinary CARLOS C. EJERCITO Arcan Lat Gianpietro Iseppi Independent Director Senior Vice President, Vice President for Hotel Operations Property Chief Financial Officer Ricky Tse Craig Umstad Vice President for Internal Audit JOSE P. PEREZ Vice President for Table Games Independent Director Maria Milagros Ermita Roberto Castro Vice President for Housekeeping