U CITY PCL 1Q 2020 EARNINGS PRESENTATION 20 MAY 2020 Vienna House MQ Kronberg im Taunus Prepared by Investor Relations Department U CITY PCL
IR CONTACT Address: U City Public Company Limited IR Department 20 th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand 10900 Telephone: +66(0) 2273 8623 Fax: +66(0) 2273 8858 Email: ir@ucity.co.th Website: www.ucity.co.th DISCLAIMER This document has been prepared and distributed by the Investor Relations Department of U City Public Company Limited (“U City”) solely for information purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in U City and should not be relied on as such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. U City does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, U City assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of U City or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. All information contained in this document is presented as of the date indicated within, and U City assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, U City assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. U City undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Prepared by Investor Relations Department 2 U CITY PCL
CONTENTS Section 1 Financial Performance Section 2 Operational Performance Section 3 Business Updates Section 4 Appendices Prepared by Investor Relations Department 3 U CITY PCL
KEY HIGHLIGHTS 1Q 2020 Key Developments in 1Q 2020 Net Loss Total Revenues • The new opening of Vienna House MQ Kronberg im Taunus hotel. The 96-key (807)mn THB 1,992mn operating leased hotel in Kronberg, Germany, was fully launched on 13 February 2020 vs under Vienna House brand. +36.3% YoY +222.5% YoY • Termination of management contracts (238)mn (1Q 2019) of 2 managed hotels in Europe. EBITDA up THB 57mn Net D/E Ratio • Acquisition and disposal of the ordinary Total Assets shares with Sansiri. U City acquired all 0.98x shares in BSH 15 and disposed its stakes in THB 66.2bn BSH20, BSH24, and BSH25. vs • Adoption of TFRS9 and TFRS16. As a +42.0% YoY +23.7% from 31 Dec 2019 result, total assets and total liabilities surged 0.48x (31 Dec 2019) by THB 11bn. Net profit diluted by the increase in depreciation and finance cost. D/E ratio and Net D/E ratio were amplified. • COVID-19 outbreak significantly affects the Group’s business activities. 53 hotels out of 57 hotels in the portfolios were closed since the 2 nd half of March 2020, and this is significantly impacting the Group’s financial performance at present, and is expected to do so in the future. Vienna House MQ Kronberg im Taunus Vienna House MQ Kronberg im Taunus Section 1: Financial Performance Prepared by Investor Relations Department 4 U CITY PCL
FINANCIAL PERFORMANCE OVERVIEW PROFIT & LOSS THB mn 1Q 2020 1Q 2019 % YoY 4Q 2019 % QoQ Total Revenues 1,992.4 1,461.9 36.3% 4,109.1 (51.5%) Operating Revenue 1,486.6 1,347.6 10.3% 2,205.3 (32.6%) Gross Operating Profit (GOP) 770.1 766.0 0.5% 1,267.5 (39.2%) SG&A (1) (743.8) (700.0) 6.3% (1,054.8) (29.5%) EBITDA 33.1 131.6 (74.9%) 2,116.5 (98.4%) Share of Profit (Loss) from JVs/Associates (238.4) (22.5) (962%) 99.4 n.a. Finance Cost (281.2) (193.6) 45.2% (194.2) 44.8% Net Profit (806.6) (238.4) (238%) 1,752.2 n.a. GOP Margin 51.8% 56.8% 57.5% Operating EBITDA Margin (1) 26.2% 12.3% 19.7% EBITDA Margin 1.7% 9.0% 51.5% Net Profit Margin (40.5%) (16.3%) 42.6% Note: (1) Exclude FX gain/(loss), impairments and Gain from MCL divestment 1Q 2020 REVENUE CONTRIBUTION BY SEGMENT 1Q 2020 REVENUE GROWTH CONTRIBUTION THB mn * Others Include interest income, FX gain, and others 5 Section 1: Financial Performance Prepared by Investor Relations Department U CITY PCL
FINANCIAL PERFORMANCE OVERVIEW (THB mn) Vienna House GOP 544mn (71%) JV Siri & Noble -211mn Thai hotels GOP 142mn (19%) UBM JV -19 mn Others -8 mn Vienna House SG&A 540mn (73%) Mainly unrealised loss Gain from sale of JVs 123mn from loan revaluation Interest income 118mn Mgt contract 57mn Overseas loan 218mn termination (Net) Loan BTSG 63mn Section 1: Financial Performance Prepared by Investor Relations Department 6 U CITY PCL
BALANCE SHEET & CASH FLOW 3M CASH FLOW CAPEX & PROPERTY INVESTMENTS * Others includes translation adjustment and cash & cash equivalents of subsidiaries which classified as assets held for sale Section 1: Financial Performance Prepared by Investor Relations Department 7 U CITY PCL
DEBT STRUCTURE BREAKDOWN BY INTEREST BREAKDOWN BY CURRENCY Fixed Rate GBP 9% Weighted Average 1% 4.2% Cost of Debt Weighted Average 7.2 Years Maturity of Debt THB EUR EUR THB 48% 50% 51% 49% Current Debt THB 8,260mn Non-Current Debt THB 22,948mn Floating Rate 91% Note: * Current and Non-current debt Include Lease liabilities KEY RATIOS Total Interest Bearing Debt D/E Ratio Net D/E Ratio 31 Mar 2020: 31,209mn 31 Mar 2020: 1.05x 31 Mar 2020: 0.98x 31 Dec 2019: 17,595mn 31 Dec 2019: 0.58x 31 Dec 2019: 0.48x Section 1: Financial Performance Prepared by Investor Relations Department 8 U CITY PCL
CONTENTS Section 1 Financial Performance Section 2 Operational Performance Section 3 Business Updates Section 4 Appendices Prepared by Investor Relations Department 9 U CITY PCL
1. HOSPITALITY SEGMENT OVERVIEW BREAKDOWN OF REVENUE BY TYPE & SOURCE (%) OPERATING EBITDA (THB mn) & MARGIN (%) 28.3% 10.0% 9.9% 10.3% 9.0% 11.3% 11.1% 12.1% 12.3% 21.7% 19.8% 18.3% 452 16.0% 16.2% 14.9% 29.8% 13.4% 28.9% 27.4% 29.5% 379 376 46.5% 45.5% 46.8% 46.0% 335 333 255 357 29.8% 185 180 288 216 320 267 23.6% 123 21.0% 20.8% 19.3% 18.3% 80 15.8% 15.0% 120 132 119 105 95 88 66 59 60 59.8% 60.5% 58.2% 60.2% 44.5% 42.9% 42.9% 44.5% 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19 1Q '20 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19 1Q '20 Operating EBITDA Thailand Operating EBITDA Overseas Owned Operating lease Manange (including JV) Thai sourced revenue Operating EBITDA Margin UPCOMING KEYS TIMELINE FROM 2020 TO 2024 TOTAL HOTEL KEYS Keys Type 2020 2021 2022 2024 Total 31,786 31,025 30,636 30,215 26,997 26,334 26,305 Owned 521 (1) 521 (1) 25,162 Leased 568 (3) 730 (2) 80 (1) 1,378 (6) 20,037 18,508 18,916 19,941 16,229 17,122 16,419 15,583 Managed 2,718 (10) 8,479 (15) 6,845 (8) 18,042 (33) 11,707 11,717 11,749 11,084 10,076 9,875 9,915 9,579 Total 2,718 (10) 9,047 (18) 8,096 (11) 80 (1) 19,941 (40) 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q'19 1Q '20 ( ) = no of hotels Operational Keys Pending Keys Note: All figures above, except for operating EBITDA are based on management accounts which haven’t been subject to eliminations and adjustments Prepared by Investor Relations Department Section 2: Operational Performance 10 U CITY PCL
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