2Q 13 y/y

2013. 2Q Earnings
2013. 2nd Quarter Earnings
Aug.
2013 2Q Earnings
Index
Chapter 1.
Financial Highlights(K-IFRS)
Chapter 2.
Sales Analysis
Chapter 3.
Costs Analysis
Chapter 4.
Consolidated Statements of
Comprehensive Income
Chapter 5.
Issue & Outlook
Disclaimer
2013 2Q Earnings
• The financial information in this presentation are consolidated earning results
based on K-IFRS.
• This information is provided for the convenience of investors only, before our
external audit on financial result of our headquarters is completed. The audit
outcomes may cause some parts of this information to change.
• This presentation material may contain forward-looking statement which reflect
Kangwon Land’s current view with respect to future events and financial
performance, and are subject to certain uncertainties.
• Even though the forward-looking statements are based on reasonable assumption,
it can give no assurance that its expectation will be attained.
• The company assumes no obligation or responsibility to update the information
provided in the presentation in correspondence to their respective dates.
Chapter 1.
2013 2Q Earnings
Financial Highlights (K-IFRS)
2Q 13 y/y : Gross sales increase, while operating & net profit decrease
Sales : Up 1.1%(3.5bn) Y/Y
- Gaming revenue increase 1% along with non-gaming sectors up 5.4%
OP : Down 8.3%(8.4bn) Y/Y
- CoGS up 7.7%(11.2bn), SG&A up 1.2%(0.7bn) respectively
NP : Down 5.8%(4.6bn)
(KW:bn)
2013 2Q
2012 2Q
Sales
309.3
305.8
1.1%
342.0
Operating profit(OP)
93.0
101.5
-8.3%
118.3
30.1%
33.2%
76.2
80.9
24.6%
26.4%
(KW : bn)
Margin
Net profit(NP)
Margin
-1-
Y/Y
2013 1Q
34.6%
-5.8%
88.9
26.0%
2013. 2Q Earnings
Chapter 1. Financial Highlights (K-IFRS)
Sales trend
350
332.6
325
16.9
300
275
305.8
342.0
30.8
310.8
10.9
309.3
11.5
23.6
316
295
311
287
Non-gaming
Gaming
298
(KW:bn)
250
2Q.2012
3Q.2012
4Q.2012
1Q.2013
2Q.2013
Operating & net profit trend
125
100
75
118
105
102
80.9
81.8
50
88.9
93
Operating Profit
76.2
75
50.3
(KW:bn)
25
2Q.2012
3Q.2012
4Q.2012
-2-
Net Profit
1Q.2013
2Q.2013
2013 2Q Earnings
Sales Analysis-1
Chapter 2.
Gaming revenue
VIP : Down 13.6% Y/Y
- due to decrease of hold %, while up from drop amount
Mass table : Up 1.0% Y/Y
- Revitalization of operation after gaming environment improvement
Slot machines : Up 10.7% Y/Y
- with stable level of growth due to extra new machines installation on 2Q 2013
Others : Deferred gaming revenue etc. -1.5bn
[ Quarterly sales trend by each segments ]
2Q 12
3Q 12
4Q 12
294.9
315.7
287.2
311.2
297.8
1.0%
Change(%)
-6.4
+7.1
-9.0
+8.3
-4.3
-
VIP
44.9
54.2
45.2
60.6
38.8
-13.6%
Mass table
156.5
159.6
152.7
153.0
158.1
+1.0%
Slot machine
92.5
100.0
89.1
96.6
102.4
+10.7%
Others
1.0
1.9
0.2
1.0
-1.5
-
(KW: bn)
Sales
-3-
1Q 12
(KW:bn)
2Q 13
YoY
Chapter 2.
2013 2Q Earnings
Sales Analysis-2
Gaming segments
Visitors : Up 2.5% Y/Y, due to improvement of gaming environment on mass floor
Proportion : Growth on mass floor, due to installation of extra new tables & machines
Drop : Up 2.8% Y/Y, due to increase of visitor traffic
[ Quarterly trend in gaming segments]
(Thousands)
Visitors
2Q 12
690
3Q 12
4Q 12
1Q 13
2Q 13
YoY
811
729
776
707
+2.5%
% of sales proportion
VIP
15.2
17.3
15.8
19.5
13.0
-
Mass
53.3
50.8
53.2
49.3
52.8
-
Machine
31.5
31.9
31.0
31.2
34.2
-
1,529
1,412
1,477
1,392
+2.8%
Drop amount (KW: bn)
Gross amount
1,354
-4-
2013 2Q Earnings
Sales Analysis-3
Chapter 2.
Non-gaming revenue
Hotel : Down 10.6% Y/Y (0.6bn)
Condo : Up 28.6% Y/Y(0.8bn), due to increase of group customer & banquet sales
Golf & Ski : Down 9.5%(0.2bn) Y/Y, due to bad weather & slowdown of the economy
Others : Subsidiary
[% of non-gaming segments revenue in gross revenue]
2Q 12
3Q 12
4Q 12
1Q 13
(KW:bn)
2Q 13
YoY
Gross
10.9
16.9
23.6
30.8
11.5
+5.4%
Hotel
5.7
7.9
6.3
6.2
5.1
-10.6%
Condo
2.65
5.4
6.7
9.6
3.4
+28.6%
Ski
0.35
0.55
8.6
14.2
0.5
-
Golf
1.7
2.2
0.7
-
1.4
-
Subsidiary
0.5
0.8
1.3
0.8
1.1
-
(%)
3.6
5.1
7.6
9.0
3.7
-
-5-
Chapter 3.
Costs Analysis
2013 2Q Earnings
CoGS
(Unit:KW)
2Q 13 (156.9bn) : Up 7.7%(+11.2bn) Y/Y
• Increase: Comp. 3.2bn, labor 3.0bn, depreciation 1.5bn, tourism fund 0.5bn,
consumption tax 0.3bn, others 4.1bn
• Decrease: Materials 0.1bn, subsidiary 1.3bn
※ Gross profit 152.4bn (Down 4.8% Y/Y)
SG&A & closed coal mine region development fund
2Q 13(59.4bn) : Up 1.2%(+0.7bn) Y/Y
• Increase: Labor 0.6bn, depreciation 0.3bn, subsidiary 0.2bn, fringe benefit etc. 2.8bn
• Decrease: closed coal mine region development fund 3.2bn
※ Operating profit 93.0bn (Down 8.3% Y/Y)
Non-operating & finance income(expenses)
• Non-operating income 0.4bn, non-operating exp. 2.1bn, donations 4.5bn
• Finance income 10.6bn, finance expenses 0.1bn
• Share of loss of equity-accounted investees, net 0.4bn
※ Profit before income tax 97.0bn (Down 10.1% Y/Y)
-6-
2013 2Q Earnings
Chapter 4. Consolidated Statements of Comprehensive Income
[Summary of comprehensive income]
(kW:bn)
2Q 13
2Q 12
YoY(%)
1Q 13
309.3
305.8
+1.1
342.0
156.9
145.6
+7.7
159.6
129.1
114.4
+12.8
122.2
Hotel
9.0
9.5
-5.5
10.1
labor 2.6 / material 1.6 / dep.1.2 / others 3.6
Condo
10.2
9.6
+6.0
14.1
labor 1.4 / dep. 2.9 / others 5.9
Leisure
7.0
9.2
-24.0
11.4
labor 1.1 / dep. 2.3 / others 3.6
Subsidiaries
1.6
2.9
-44.0
1.8
152.4
160.1
-4.8
182.4
29.7
25.7
+15.3
30.8
labor 7.7 / dep. 3.0 / subsidiaries 1.7 / others 7.3
consulting 2.0/ advertising 5.0 / payment commission 3.0
29.7
32.9
-9.8
33.3
closed coal mine region development fund 29.7
Operating profit(F)
93.0
101.5
-8.3
118.3
Non-ope.,finance income(G)
11.0
12.1
-9.6
12.8
miscellaneous gains 0.4 / interest income 10.6
Non-ope.,finance exp.& share
of loss of equity-accounted
investee,net(H)
7.0
5.8
+20.7
12.3
donations 4.5,
impairment losses on investment securities 0.4,
impairment loss on intangible asset 2.1(High1 ent.)
Profit before income tax(I)
97.0
107.8
-10.1
118.8
Income tax exp.(J)
20.8
27.0
-23.1
29.9
Net profit(K)
76.2
80.8
-5.8
88.9 I - J
Sales(A)
CoGS(B)
Gaming
Gross profit(C)
SG&A(D)
Closed coal mine fund(E)
Remarks
Gaming 297.8 / others 10.4 / subsidiary 1.1
comp. 31.8 / labor 25.4 / dep. 5.4
tourism fund 29.9 /consumpt.tax 15.6 /others 21.0
subsidiaries 1.6
A–B
C–D–E
F + G -H
-7-
Chapter 5.
2013 2Q Earnings
Issue & Outlook
Plans & Activities for High1 Water World Project
 February 2012 : The project approved by the board meeting w/h capex 167 KWbn
 May 2012 : Completion of architectural design
 Aug. 2013 : Placing an order of construction
 Dec. 2015 : Grand opening
Major design content
• Size : 58,000m2
• Capacity : Max. 17,000 people(optimum 9,000)
• Indoor facilities : Pool 8types(endless pool etc.), slide 3types, healing center, kids center etc.
• Outdoor facilities : Pool 6types(wave pool etc.), slide 5types, ice tower, outdoor spa etc.
• Features
1) High-end & thematically organized water park (ex.North pole, the south pacific ambience)
2) Energy saving eco-park (the one & only water park certified by authority)
3) Relaxed & comfort environment (space per person)– usable space 120%↑, facility for
convenience 130%↑compare to competitors
- 8-
Chapter 5.
2013 2Q Earnings
Issue & Outlook
A bird's eye view of the Water world
Three-dimensional picture of
the indoor facilities
- 9-
Thank You