Q2 FY 2018/19 Earnings Update November 2018
Jetwing Symphony’s operation portfolio Jetwing Lake (Dambulla) Jetwing Kaduruketha (Wellawaya) A luxurious resort set in the center of centuries of ancient Sri Lankan history The first agro luxury eco tourism hotel in Sri Lanka offering their guests unique Rooms : 94 experiences Occupancy : 60% ARR : 12,202 Rooms : 25 Occupancy : 53% ARR : 20,594 Jetwing Colombo Seven (Colombo) The group’s first luxury hotel in the commercial capital offering an urban Jetwing Surf (Pottuvil Point) experience in the city The first high end resort in Pottuvil Point constructed with a minimum carbon footprint Rooms : 98 Occupancy : 70% Rooms : 20 ARR : 12,582 Occupancy : 59% Jetwing Yala (Yala) ARR : 32,030 A luxurious resort offering a wilderness experience by the beach Rooms : 90 Occupancy : 67% *Figures furnished are for Q2 FY19 ARR : 17,030 2
Our key performance highlights Group highlights Q2FY19 Revenue EBITDA EBIT Occupancy LKR 520Mn (+36%) LKR 194Mn (+81%) LKR 112Mn (+286%) c. 64% Revenue growth of 36% EBITDA margins improved by EBIT margins improved by c. The Group reported an primarily supported by Jetwing c. 81% from the last 286% from the last occupancy of c. 64%. Jetwing Lake and Jetwing Kaduruketha, corresponding quarter with all corresponding quarter with all Yala, Jetwing Lake and Jetwing which recorded substantial operational hotels seeing operational hotels performing Kaduruketha recorded increases in revenue healthy growth in EBITDA exceptionally well despite a increases in occupancy rocky bottom line primarily compared to the due to foreign exchange corresponding previous losses quarter 3
Jetwing Symphony records improved performance across parameters with a 36% revenue growth and 286% EBIT growth in the Q2FY19 Q2 Q2 1H 1H FY 19 IPO LKR Mn QoQ YoY FY18 FY19 FY18 FY19 Forecast ** The Group revenue grew by • Revenue 383 520 36% 650 819 26% 2,354 36% whilst EBITDA and EBIT Gross Profit 314 439 40% 524 681 30% 1,909 recorded a growth of 81% and 286% respectively, over the EBITDA 107 194 81% 129 241 87% 778 last corresponding quarter EBIT 29 112 286% (25) 77 408% 375 The main contributors to • EBITDA was Jetwing Colombo PAT* (78) 3 104% (233) (138) 41% (78) Yala , Seven and Jetwing PAT (75) (81) -8% (239) (239) 0% (100) recording figures of LKR 58mn and LKR 56mn respectively GP Margin 82% 84% 81% 83% The Group made a profit of LKR • EBITDA Margin 28% 37% 20% 29% 3mn on a recurring basis . The performance in 1H FY19 EBIT Margin 8% 22% -4% 9% improved by 41% to reduce NP Margin -20% -16% -37% -29% the loss to LKR 138mn in comparison with 1H FY18. Gearing Ratio 47% 46% 47% 46% * Excludes foreign exchange conversion gains/losses ** Full Financial Year Forecast. Source: Jetwing Symphony IPO Prospectus – Independent Valuation Report 4
Clear growth across the board with the five Symphony hotels contributing to an EBITDA growth of 81% for Q2FY19 Revenue (LKR Mn) EBITDA (LKR Mn) 1,000 280 26% 87% 240 800 81% Jetwing Surf 200 36% 600 Jetwing Colombo Seven 160 Jetwing Lake 120 400 Jetwing Kaduruketha 80 Jetwing Yala 200 40 0 0 Q2 FY18 Q2 FY19 1H FY18 1H FY19 (40) Q2 FY18 Q2 FY19 1H FY18 1H FY19 Revenue Composition Jetwing Yala, Jetwing Colombo Seven and Jetwing Lake were the • top revenue contributors for the Group (together accounted for 84% 3.8% 2.4% of Group revenue) Rooms Jetwing Yala, Jetwing Kaduruketha, Jetwing Lake and Jetwing Surf • witnessed an increase in overall occupancy while all properties Food & Beverage 33.4% Q2 FY19 recorded higher ARRs Banquet 60.4% All hotels have effectively controlled operational costs, resulting in • Spa and Other Income healthy EBIT and EBITDA margins 5
Our Operational Hotel Performance
Jetwing Yala – Steady QoQ growth in Revenue and EBIT driven by increase in occupancy and ARR of hotel rooms Q2 Q2 1H 1H 25 80% LKR Mn QoQ YoY Thousands FY18 FY19 FY18 FY19 70% ARR Hotel Revenue 144 164 14% 260 273 5% 20 60% Gross Profit 120 137 14% 212 222 5% ARR Tented 50% 15 Villas EBITDA 48 56 17% 78 79 1% 40% 22 21 10 Occupancy 30% EBIT 27 35 30% 36 38 6% 17 Hotel 16 20% PAT* 10 16 60% 2 4 100% 5 Occupancy 10% Tented Villas PAT 11 (1) -109% (1) (19) -1,800% 0 0% Q2 FY18 Q2 FY19 GP Margin 83% 84% 82% 81% EBITDA Margin 33% 35% 30% 29% 3.9% EBIT Margin 19% 22% 14% 14% Rooms NP Margin 8% -1% 0% -7% * Excludes foreign exchange conversion gains/losses Q2 FY19 Food & Beverage 37.9% 58.2% Spa and Other Occupancy of tented villas reduced due to ongoing construction work in line • Income with the repositioning of tented villas as Jetwing Safari Camp Profit, excluding foreign exchange losses, increased by 60% from the • corresponding quarter for FY18 7
Jetwing Safari Camp – Repositioning itself as true luxury wild life experience for guests Jetwing Tented Villas was rebranded as Jetwing Safari Camp , a boutique hotel which would offer • highly personalized and exclusive experiences for its guests With Yala being Sri Lanka’s most popular national park, Jetwing Safari Camp would cater to a niche market • of wildlife enthusiasts. The luxury tents would be marketed to the high end tourism market , focusing on European, Canadian and Australian wildlife aficionados Jetwing Safari Camp is scheduled to re-open in November 2018 • Developments of Jetwing Safari Camp Rebranded as Online booking sites and Completed Training of Jetwing Safari Camp social media updated to construction of rangers to offer for search engine the rebranding and revised restaurant and bar wildlife packaged optimization rates dedicated for Jetwing experiences to Safari Camp guests 8
Jetwing Kaduruketha – 95% revenue growth as the hotel reaps benefits from its positioning as a luxury eco-resort in Sri Lanka Q2 Q2 1H 1H LKR Mn QoQ YoY 25 60% FY18 FY19 FY18 FY19 Thousands Revenue 20 39 95% 33 52 58% 50% 20 Gross Profit 17 35 106% 27 45 67% Total ARR 40% 15 EBITDA 1 13 1,200% (2) 10 600% 30% EBIT (2) 9 550% (8) 2 125% 21 10 Total 20% Occupancy PAT* (10) 5 150% (23) (6) 74% 11 5 10% PAT (10) 2 120% (24) (9) 63% 0 0% GP Margin 85% 90% 82% 87% Q2 FY18 Q2 FY19 EBITDA Margin 5% 33% -6% 19% 3.2% EBIT Margin -10% 23% -24% 4% Rooms NP Margin -50% 5% -73% -17% 32.9% * Excludes foreign exchange conversion gains/losses Q2 FY19 Food & Beverage 63.9% Spa and Other Income With its positioning in line with the standards of luxury eco-resorts resulted in • Jetwing Kaduruketha achieving an 82% increase in ARR and a 23% increase in occupancy 9
Jetwing Lake – Significant QoQ revenue and EBITDA growth driven by an increase in F&B contribution Q2 Q2 1H 1H LKR Mn QoQ YoY 14 61% FY18 FY19 FY18 FY19 Thousands 12 Revenue 81 121 49% 130 185 42% 60% 10 Gross Profit 61 100 64% 98 150 53% Total ARR 59% 8 EBITDA 12 38 217% (2) 40 2,100% 6 12 EBIT (12) 15 225% (50) (7) 86% 58% Total 4 Occupancy PAT* (53) (22) 58% (127) (80) 37% 7 57% 2 PAT (52) (33) 37% (127) (93) 27% 0 56% GP Margin 75% 83% 75% 81% Q2 FY18 Q2 FY19 EBITDA Margin 15% 32% -2% 22% 3.7% EBIT Margin -15% 13% -38% -4% Rooms NP Margin -64% -28% -98% -50% 46.1% * Excludes foreign exchange conversion gains/losses Q2 FY19 Food & Beverage Jetwing Lake recorded an ARR of LKR 12,202 for the quarter which is a 68% • Spa and Other 50.2% improvement from the corresponding quarter Income • Effective control on costs has resulted in an EBITDA margin improving to 32% On the sustainability front, Jetwing Lake also implemented a number of green • initiatives during the quarter 10
Jetwing Colombo Seven – Albeit marginal top-line growth, operational efficiencies resulted in an EBIT growth of 53% Q2 Q2 1H 1H LKR Mn QoQ YoY 16 100% FY18 FY19 FY18 FY19 Thousands 90% ARR Deluxe 14 Revenue 137 145 6% 226 237 5% Rooms 80% 12 Gross Profit 115 124 8% 187 202 8% 70% ARR 10 60% Apartments EBITDA 48 58 21% 60 82 37% 8 50% 14 Occupancy EBIT 19 29 53% 2 25 1,150% 40% 6 12 12 Deluxe 11 30% Rooms PAT* (23) (15) 35% (81) (62) 23% 4 20% Occupancy PAT (22) (65) -195% (84) (121) -44% 2 Apartments 10% 0 0% GP Margin 84% 86% 83% 85% Q2 FY18 Q2 FY19 EBITDA Margin 35% 41% 27% 35% 4.2% Rooms 7.0% EBIT Margin 14% 21% 1% 11% NP Margin -16% -46% -37% -51% Food & Beverage * Excludes foreign exchange conversion gains/losses Q2 FY19 Banquet 27.3% 61.5% Occupancy rates of deluxe rooms fell due to the reduction of business from low- • end travel agents Spa and Other Income Deluxe room ARR increased by 13% to LKR 12,186 while ARR of apartments • increased by 19% to LKR 14,222 resulting in a top-line growth of 3% 11
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