ANNUAL REPORT

More documents

Recommendations

Info

Phoenix Resort K.K. • Headquarters: Japan • Industry: Hospitality Segment • Privately Held • RHJI ownership as of March 31, 2009: 100 % Overview of Activities Phoenix Seagaia Resort (www.seagaia.co.jp) is a resort complex located in Miyazaki Prefecture on Kyushu, the southernmost of the main islands of Japan. Miyazaki has a suitable climate for year-round outdoor activities. The principal assets of the Phoenix Seagaia Resort are situated in a historic 750-acre pine forest that extends over 10 kilometers along the Pacific Ocean coastline, which is just outside the city of Miyazaki and 20 minutes from the airport. Phoenix Seagaia Resort includes golf courses, lodging facilities, renovated spa (onsen) and fitness facilities, one of the largest convention centers in Japan and a tennis club. Revenue by operating segment (single geographic segment) Hotel 76% Golf 21% Others 3% Key figures Condensed consolidated income statement for the fiscal year ended March 31 (1) (In millions) JPY EUR 2009 2008 2009 2008 Revenue 12,327 14,478 94.0 110.4 Gross profit 1,530 2,260 11.7 17.2 Gross margin 12.4 % 15.6 % 12.4 % 15.6 % EBITDA 297 989 2.3 7.5 EBITDA margin 2.4 % 6.8 % 2.4 % 6.8 % Operating loss (701) (112) (5.3) (0.9) Loss for the year (517) (547) (3.9) (4.2) (1) Excluding the effect of the purchase price allocation carried out in connection with the contribution of the ownership interests to the Company at March 31, 2005. Consolidated cash and financial debt for the fiscal year ended March 31 (In millions) JPY EUR 2009 2008 2009 2008 Cash 455 644 3.5 4.9 Financial debt 7,144 7,777 54.5 59.3 22
LETTER TO SHAREHOLDERS AND BUSINESS REVIEW Reduced foreign travel and a weak domestic tourist market drive hotel occupancy significantly lower Phoenix Seagaia Resort recorded revenue of JPY 12,327 million for the fiscal year ended March 31, 2009, a decrease of 14.9% compared to the previous fiscal year. The global economic downturn resulted in deferred spending in all tourist market segments. The number of foreign visitors to Japan fell drastically and Phoenix Seagaia Resort was particularly exposed to the impact of the weak Korean Won on the number of Korean visitors. Phoenix Seagaia Resort also saw domestic travel reduced significantly as companies cut back on budgets for corporate events, which are critical to the occupancy of Phoenix Seagaia Resort’s five star hotel. The lower occupancy also resulted in a decreasing number of golf rounds. Phoenix Seagaia Resort started the implementation of a drastic cost rationalization program to mitigate the impact of low sales and to ensure compliance with the financial covenants under its credit agreements at March 31, 2009. The program reduced costs by approximately JPY 1,500 million on an annualized basis, and identified several additional actions to address the impact from a potential further decline of the resort’s occupancy rates. EBITDA for the fiscal year ended March 31, 2009, amounted to JPY 297 million, compared to JPY 989 million during the previous fiscal year. The decreased hotel occupancy and lower average daily rates account for most of the shortfall. Furthermore, the Ocean Dome contributed positively to Phoenix Seagaia Resort’s overall EBITDA for the first half of the previous fiscal year ended March 31, 2008. Although the Ocean Dome was loss making, the announcement of the closure had a beneficial, non-recurring impact on the number of visitors. The Ocean Dome was closed on October 1, 2007, and other attractions, such as the newly developed beach concept, have only gradually contributed to room sales and will need additional marketing to grow into key attraction points for the resort. At March 31, 2009, Phoenix Seagaia Resort reviewed the recoverable amount of its property, plant and equipment using the income approach, which revealed it to be below the carrying value by JPY 13,993 million. Of this impairment loss, JPY 13,640 million is recognized on the asset values resulting from the initial purchase price allocation, and therefore only recorded in the Company’s consolidated financial statements. As a result of the deteriorated financial performance and in order to allow Phoenix Seagaia Resort to make scheduled repayments under its credit facility, the Company injected JPY 300 million in June, 2008, JPY 400 million in September, 2008, and JPY 300 million in January, 2009. The Company expects to make further capital contributions to Phoenix Seagaia Resort during the fiscal year ending March 31, 2010, to the extent they will result in an equivalent reduction of the Company's exposure from the guarantee and the intra-group revolving credit facility. Phoenix Seagaia Resort refinances entire debt On September 29, 2008, Phoenix Seagaia Resort entered into an agreement with its lenders to amend certain terms and conditions of its existing credit facility of JPY 7,508 million. The term of the amended loan is 3 years. The amendment provides for quarterly repayments of JPY 195 million and a bullet payment of JPY 5,497 million on September 30, 2011. In addition to this amended loan agreement, the Company extended the revolving credit facility from JPY 500 million to JPY 1,000 million until September 30, 2011. The outstanding balance of this intragroup loan at March 31, 2009 amounted to JPY 400 million. March 31, 2009, Phoenix Seagaia Resort had already repaid JPY 390 million of the guaranteed principal, and had outstanding financial indebtedness of JPY 7,144 million, compared to JPY 7,777 at March 31, 2008. The Company guarantees the quarterly repayments and the total interest up to an aggregate amount of JPY 3,400 million. At 23
Page 1: ANNUAL REPORT Year Ended March 31,
Page 5: PART I LETTER TO SHAREHOLDERS AND B
Page 8 and 9: Support to our portfolio companies
Page 10 and 11: The evolution of the book value of
Page 12 and 13: Consolidated Financial Statements F
Page 14 and 15: Asahi Tec Corporation • Headquart
Page 16 and 17: RHJI's purchase agreement to buy ce
Page 18 and 19: Honsel International Technologies S
Page 20 and 21: Niles Co., Ltd. • Headquarters: J
Page 22 and 23: Columbia Music Entertainment, Inc.
Page 26 and 27: Shaklee Global Group, Inc. • Indu
Page 29 and 30: PART II FINANCIAL STATEMENTS FOR TH
Page 31 and 32: FINANCIAL STATEMENTS FOR THE FISCAL
Page 75 and 76:
FINANCIAL STATEMENTS FOR THE FISCAL
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
PART III CORPORATE GOVERNANCE
Page 109 and 110:
CORPORATE GOVERNANCE The Belgian Co
Page 111 and 112:
CORPORATE GOVERNANCE The following
Page 113 and 114:
CORPORATE GOVERNANCE (1997 to 2000)
Page 115 and 116:
CORPORATE GOVERNANCE INVESTMENT AND
Page 117 and 118:
CORPORATE GOVERNANCE Mr. Fischer ha
Page 119 and 120:
CORPORATE GOVERNANCE OTHER TERMS RH
Page 121 and 122:
CORPORATE GOVERNANCE STATUTORY AUDI
Page 123 and 124:
CORPORATE GOVERNANCE 121
Page 125 and 126:
PART IV SHAREHOLDERS’ INFORMATION
Page 127 and 128:
SHAREHOLDERS’ INFORMATION SHARE P
Page 129 and 130:
NOTES 127
Page 131 and 132:
Co-ordination and Production : IPAC
show all

ANNUAL REPORT

Create successful ePaper yourself

Delete template?

Save as template?