SJM : Annual Results Announcement for the Year Ended 31 December 2015 (in PDF)

43165-01A 1..34

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(incorporated in Hong Kong with limited liability)

(Stock Code: 880)

ANNUAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 31 DECEMBER 2015

The board of directors (the ''Board'') of SJM Holdings Limited (the ''Company'') hereby announces the audited consolidated annual results of the Company and its subsidiaries (collectively the ''Group'') as follows.

HK43.6 cents HK43.5 cents

HK120.0 cents

HK119.3 cents

(63.7%)

(63.5%)

HK15 cents

HK10cents

HK62 cents

HK22 c ents

FINANCIAL HIGHLIGHTS

Year ended 31 December

2015

HK$ million

2014

HK$ million

Decrease

Gaming Revenue

Hotel, Catering and Other Income Adjusted EBITDA*

Profit attributable to owners of the Company

Earnings per share

• basic

• diluted

  Dividend per ordinary share

• proposed final dividend

• interim dividend paid

48,590

601

3,862

2,465

79,269

971

7,763

6,731

(38.7%)

(38.1%)

(50.3%)

(63.4%)

- total dividends for the year

HK25cents HK84 c ents

(70.2%)

* Adjusted EBITDA is earnings after adjustment for non-controlling interests and before accounting for interest

income and expense, tax, depreciation and amortisation, donations, premium on acquisition written off, loss on disposal/write-off of property and equipment, share-based payments and impairment loss on available-for-sale investment in equity securities.

PROPOSED FINAL DIVIDEND

The Board recommends the payment of a final dividend of HK15 cents per ordinary share of the Company (the ''Share'') (2014: final dividend of HK62 cents per Share), for the year ended 31 December 2015, which is subject to approval at the forthcoming annual general meeting of the Company to be held on Thursday, 16 June 2016 (the ''2016 Annual General Meeting'').

OPERATING HIGHLIGHTS

• Gaming revenue earned by Sociedade de Jogos de Macau, S.A. (''SJM''), a subsidiary of the Company, was HK$48,590 million in 2015, a decrease of 38.7% from the previous year.

• Adjusted EBITDA of the Group was HK$3,862 million, a decrease of 50.3% from the previous year.

• Profit attributable to owners of the Company was HK$2,465 million, a decrease of 63.4% from the previous year. The amount includes an impairment loss on available-for-sale investment in equity securities of HK$250 million (2014: Nil) and the impact on profit of suspension of a satellite casino of HK$143 million (2014: Nil). Without these impacts, profit attributable to owners of the Company in 2015 would have decreased by 57.5% over 2014 to HK$2,858 million.

• SJM had a 21.7% share of Macau's gaming revenue, including 25.3% of mass market table gaming revenue and 20.2% of VIP gaming revenue.

• The Group's flagship Casino Grand Lisboa had declines in gaming revenue, Adjusted Property EBITDA and attributable profit for the year of 44.1%, 49.5% and 56.1%, respectively.

• Grand Lisboa Hotel's occupancy rate decreased by 10.2% to 83.0% for the full year, whilst average room rate decreased by 12.7% to HK$2,030.

• The Group maintained its strong balance sheet, with cash, bank balances and pledged bank deposits totaling HK$17,319 million as at 31 December 2015.

• Construction work on the Group's integrated resort on Cotai, now named the Grand Lisboa Palace, made substantial progress in 2015. Foundation work was essentially completed by the first quarter of 2015, so that construction on the superstructure and basement levels is now well underway, for completion around the end of 2017.

• A final dividend of HK15 cents per Share has been proposed. If the proposed dividend is approved at the forthcoming annual general meeting of the Company, total dividends for 2015, including interim dividend of HK10 cents per Share paid in September 2015, would be HK25 cents per Share, equal to 57.5% of diluted earnings per Share.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2015

Notes	2015 HK$ million	2014 HK$ million
Gaming, hotel, catering and related services revenues	49,170.9	79,933.9
Gaming revenue	4	48,589.5	79,268.5
Special gaming tax, special levy and gaming premium	(18,819.9)	(30,495.8)
29,769.6	48,772.7
Hotel, catering and related services income Cost of sales and services on hotel, catering and related services	581.4 (249.0)	665.4 (266.3)
Other income, gains and losses	19.4	306.0
Marketing and promotional expenses	(18,455.0)	(33,788.6)
Operating and administrative expenses	(9,196.0)	(8,780.3)
Finance costs	5	(51.9)	(72.6)
Share of profits of an associate	64.7	26.0
Share of profits of a joint venture	7.0	7. 4
Profit before taxation	6	2,490.2	6,869.7
Taxation	7	(38. 3)	(88. 3)
Profit for the year	2,451.9	6,781.4
Other comprehensive income (expense): Item that may be subsequently reclassified to profit or loss: Available-for-sale investment in equity securities:
Losses arising during the year	(397.2)	(1,095.5)
Reclassification adjustment upon impairment	250.0	-
Other comprehensive expense for the year	(147.2)	(1,095.5)
Total comprehensive income for the year	2,304.7	5,685.9
Profit for the year attributable to - owners of the Company	2,465.0	6,730.7
- non-controlling interests	(13. 1)	50.7
2,451.9	6,781.4
Total comprehensive income for the year attributable to - owners of the Company	2,317.8	5,635.2
- non-controlling interests	(13. 1)	50.7
2,304.7	5,685.9
Earnings per share - Basic	9	HK43.6 c ents	HK120.0 cents
- Diluted	9	HK43.5 cents	HK119.3 cents

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2015

Notes	2015 HK$ million	2014 HK$ million
Non-current assets Property and equipment	14,054.4	11,431.4
Land use rights	2,634.5	2,728.9
Intangible asset	7.9	14.2
Art works and diamonds	281.3	281.3
Interest in an associate	109.8	45.1
Interest in a joint venture	108.2	101.2
Available-for-sale investment in equity securities	211.2	608.4
Other financial assets	346.2	350.7
Pledged bank deposits	424.1	525.9
18,177.6	16,087.1
Current assets Inventories	63.0	63.0
Trade and other receivables	10	1,658.2	2,093.9
Amount due from ultimate holding company	-	0.1
Financial assets at fair value through profit or loss	61.4	78.6
Pledged bank deposits	80.9	85.8
Short-term bank deposits	6,441.7	14,259.8
Bank balances and cash	10,371.9	9,546.8
18,677.1	26,128.0
Current liabilities Trade and other payables	11	10,730.3	14,383.4
Payable for acquisition of land use rights	343.9	327.3
Taxation payable	59.7	41.1
Long-term bank loans Amounts due to non-controlling interests of subsidiaries	158.4 5.0	257.9 22.9
11,297.3	15,032.6
Net current assets	7,379.8	11,095.4
Total assets less current liabilities	25,557.4	27,182.5