13 Aug 2010 Genting Singapore

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Non-gaming operations picking up. Contribution to revenuehas inched up to c. 10-15% in 2Q10 (1Q10: 100% >100%

UK 105.9 109.1 113.0 -6.3% -3.0%GBP-SGD depreciation, but stronger

business volume

RWS 861.7 - 334.0 >100% >100%

Full quarter contribution vs 1Q10's first 45

days, higher than average VIP win

percentage

Others 11.7 11.0 13.4 -12.5% 6.6%

Less: COGS (465.3) (104.9) (335.5) 38.7% >100%Adjusted EBITDA 514.0 15.3 124.9 >100% >100%UK 9.1 12.1 16.7 -45.5% -25.0%

RWS 503.5 - 108.9 >100% >100%

Others 1.3 3.2 (0.7) n.m. -57.9%

Less: Depreciation (86.3) (8.6) (26.8) >100% >100% RWS full quarter impact

EBIT (Operating Profit) 431.1 6.6 148.8 >100% >100%

Net interest (41.3) (13.9) (22.1) 86.6% >100%

Interest Expense (42.6) (14.4) (23.4) 82.4% >100% RWS full quarter impact

Interest Income 1.3 0.6 1.2 5.1% >100%

Exceptional Items (0.0) (20.6) (503.7) -100.0% -99.9%1Q10 include S$478m impairment on

investment in Genting UK

Associates/ Jointly controlled entity 0.1 (20.7) (0.9) n.m. n.m.

Pre-tax Profit 389.9 (48.5) (377.9) n.m. n.m.

Less: Taxation 6.6 (2.2) (18.4) n.m. n.m. Effective Tax Rate (%) 0.0 0.0 0.0 -65.1% -62.2%

Profit After Tax 396.5 (50.7) (396.3) n.m. n.m.

Minority interest - - - - -

Net Profit 396.5 (50.7) (396.3) n.m. n.m.Net profit (ex-exceptionals) 396.6 (30.1) 107.4 n.m. >100%EBITDA margin (%) 52% 13% 27%

UK 9% 11% 15% Higher debts written off

RWS 58% - 33%

RWS full quarter impact, higher than

average VIP win percentage, Universal

Studios already broken-even Source: Company, DBS Vickers


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Figure 2: Revised sum-of-partsS$ m S$/share % SOP

NPV of RWS 24,822.2 2.04 104%

Net proceeds from disposal of UK operations 688.8 0.06 3%

Pacific Lottery Club 1.0 0.00 0%Rank Group 108.3 0.01 0%

25,620.3Net Cash/(Debt) (1,946.8) (0.16) -8%

Interest savings (assume debt repayment with

proceeds from disposal of Genting UK)155.0 0.01 1%

Sum-of-parts 23,828.5 1.96 100%No of shares (m) 12,161.9

Sum-of-parts/share (S$) 1.96RWS - Discounted cashflows (S$m) 2010 2011 2012 2013 2014 2015EBIT 1,054.9 1,365.8 1,660.3 2,035.6 2,392.1 2,636.8Less : Tax on EBIT (179.3) (232.2) (282.3) (346.0) (406.7) (448.3)

875.6 1,133.6 1,378.1 1,689.5 1,985.5 2,188.6

Add : Depreciation & non-cash items 175.0 220.0 220.0 220.0 220.0 220.0

Operating Cashflow (After-tax) 1,050.6 1,353.6 1,598.1 1,909.5 2,205.5 2,408.6

Less: Chg in Working Capital (210.1) (270.7) (319.6) (381.9) (441.1) (481.7)

Less: Capex (2,200.0) (1,000.0) (200.0) (200.0) (200.0) (200.0)

(1,359.6) 82.9 1,078.4 1,327.6 1,564.4 1,726.9

Terminal Value 35,099.4FCFF (S$m) (1,359.6) 82.9 1,078.4 1,327.6 1,564.4 36,826.3PV (1,258.1) 71.0 854.5 973.4 1,061.4 23,120.0

Key AssumptionsTotal Gross Revenue, beforecommissions/rebates (S$m) 3,334.0 4,332.1 5,201.8 3,334.0 3,334.0 3,334.0Total Net Revenue (S$m) 2,632.0 3,389.0 4,027.0 2,632.0 2,632.0 2,632.0Total EBITDA (S$m) 1,259.9 1,585.8 1,880.3 1,259.9 1,259.9 1,259.9EBITDA margin (on gross revenue) 38% 37% 36% 36% 36% 36%

EBITDA margin (on net revenue) 48% 47% 47% 46% 46% 46%

Casino revenue (US$m) 2,042.4 2,533.4 2,974.3 3,445.1 4,001.3 4,391.1- VIP 1,156.3 1,445.1 1,682.7 1,934.6 2,226.2 2,405.2

- Grind 635.8 806.4 952.8 1,111.7 1,304.0 1,436.3

- Slots 250.3 282.0 338.8 398.8 471.1 549.7

Daily net win 6.4 7.9 9.3 10.8 12.5 13.7

Distribution 100% 100% 100% 100% 100% 100%

- VIP 57% 57% 57% 56% 56% 55%

- Grind 31% 32% 32% 32% 33% 33%

- Slots 12% 11% 11% 12% 12% 13%

VIP gaming

- Junket 0% 30% 60% 60% 60% 60%

- In-house 100% 70% 40% 40% 40% 40%

No of tables 400 493 565 640 715 750

- VIP 132 163 186 211 236 248

- Mass 268 330 379 429 479 503

No of slots 1,371 1,500 1,750 2,000 2,250 2,500

Daily net win per table (US$) 12,275 12,524 12,780 13,041 13,527 14,033

Daily net win per slot (US$) 500 515 530 546 574 602

Cost (US$m)Gaming tax % (including 7% GST)

- VIP 12% 12% 12% 12% 12% 12%

- Grind 21% 21% 21% 21% 21% 21%

Junket commission (% of rolling chip) 1.5% 1.5% 1.5% 1.5% 1.5% 1.5%

Rebates for in-house VIP (% of rolling chip) 1.2% 1.2% 1.2% 1.2% 1.2% 1.2%

No of staff 10,000 10,000 10,000 10,000 10,000 10,000

Average wage 2,020 2,323 2,671 3,072 3,533 4,063

Growth % YOY 15% 15% 15% 15% 15%

Other overheads (% of sales) 5% 5% 5% 5% 5% 5%

Non-gaming revenue (S$m) 544.0 871.5 1,138.9 1,418.9 1,554.7 1,704.0% of total revenue 16% 20% 22% 23% 22% 22%

No of visitors to USS (m) 2.7 4.9 6.1 7.6 8.0 8.4

Average ticket price (S$) 70 74 77 81 85 89

Hotel ARR (S$/room-night) 260 273 287 301 316 332

Occupancy rate (%) 80% 85% 90% 90% 90% 90% Source: Company, DBS Vickers


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Income Statement (S$ m) Balance Sheet (S$ m)FY Dec 2009A 2010F 2011F 2012F FY Dec 2009A 2010F 2011F 2012FTurnover 491 3,844 4,859 5,728 Net Fixed Assets 4,538 6,321 6,858 6,751Cost of Goods Sold (419) (2,592) (3,241) (3,821) Invts in Associates & JVs 46 37 28 19Gross Profit 72 1,252 1,618 1,908 Other LT Assets 1,409 1,409 1,409 1,409Other Opng (Exp)/Inc (38) (217) (262) (258) Cash & ST Invts 2,851 2,418 2,400 3,238Operating Profit 34 1,034 1,356 1,650 Inventory 13 26 32 38Other Non Opg (Exp)/Inc 0 0 0 0 Debtors 127 214 256 286Associates & JV Inc (9) (9) (9) (9) Other Current Assets 73 144 144 144Net Interest (Exp)/Inc (52) (226) (227) (219) Total Assets 9,058 10,568 11,128 11,886Exceptional Gain/(Loss) (238) 0 0 0Pre-tax Profit (266) 799 1,120 1,422 ST Debt 97 97 97 97Tax (12) (136) (190) (242) Other Current Liab 714 786 853 955Minority Interest 0 0 0 0 LT Debt 3,654 4,185 3,748 3,223Preference Dividend 0 0 0 0 Other LT Liabilities 458 0 0 0Net Profit (278) 663 930 1,181 Shareholders E uit 4,134 5,501 6,430 7,611Net Profit before Except. (39) 663 930 1,181 Minority Interests 0 0 0 0EBITDA 63 1,243 1,609 1,899 Total Cap. & Liab. 9,058 10,568 11,128 11,886Sales Gth (%) (23.7) 682.6 26.4 17.9 Non-Cash Wkg. Capital (500) (402) (421) (487)EBITDA Gth (%) (17.6) 1,878.6 29.5 18.0 Net Cash/(Debt) (900) (1,864) (1,444) (81)Opg Profit Gth (%) (1.8) 2,935.1 31.0 21.7Net Profit Gth (%) 122.4 (339.0) 40.1 27.0Effective Tax Rate (%) N/A 17.0 17.0 17.0Cash Flow Statement (S$ m) Rates & RatioFY Dec 2009A 2010F 2011F 2012F FY Dec 2009A 2010F 2011F 2012FPre-Tax Profit (266) 799 1,120 1,422 Gross Margins (%) 14.6 32.6 33.3 33.3Dep. & Amort. 38 217 262 258 Opg Profit Margin (%) 6.9 26.9 27.9 28.8Tax Paid (8) (136) (190) (242) Net Profit Margin (%) (56.5) 17.3 19.1 20.6Assoc. & JV Inc/(loss) 9 9 9 9 ROAE (%) (8.1) 13.8 15.6 16.8Chg in Wkg.Cap. (32) 147 19 66 ROA (%) (4.0) 6.8 8.6 10.3Other Operating CF 190 0 0 0 ROCE (%) 0.5 9.5 11.2 12.9Net Operating CF (69) 1,036 1,220 1,513 Div Payout Ratio (%) N/A 0.0 0.0 0.0Capital Exp.(net) (1,994) (2,000) (800) (150) Net Interest Cover (x) 0.6 4.6 6.0 7.5Other Invts.(net) 0 0 0 0 Asset Turnover (x) 0.1 0.4 0.4 0.5Invts in Assoc. & JV 0 0 0 0 Debtors Turn (avg days) 94.1 16.2 17.6 17.3Div from Assoc & JV 0 0 0 0 Creditors Turn (avg days) 370.2 101.8 100.4 92.6Other Investing CF (5) 0 0 0 Inventory Turn (avg days) 8.2 3.0 3.6 3.6Net Investing CF (1,999) (2,000) (800) (150) Current Ratio (x) 3.8 3.2 3.0 3.5Div Paid 0 0 0 0 Quick Ratio (x) 3.7 3.0 2.8 3.4Chg in Gross Debt 2,419 531 (437) (525) Net Debt/Equity (X) 0.2 0.3 0.2 0.0Capital Issues 1,510 0 0 0 Net Debt/Equity ex MI (X) 0.2 0.3 0.2 0.0Other Financing CF (102) 0 0 0 Capex to Debt (%) 53.2 46.7 20.8 4.5

Net Financing CF 3,828 531 (437) (525) Z-Score (X) 0.0 0.0 0.0 0.0Net Cashflow 1,760 (433) (17) 838 N. Cash/(Debt)PS (S cts) (7.4) (15.3) (11.9) (0.7)

Opg CFPS (S cts) (0.3) 7.3 9.9 11.9Free CFPS (S cts) (17.0) (7.9) 3.5 11.2Quarterly / Interim Income Statement (S$ m) Segmental Breakdown / Key Assumptions

FY Dec 3Q2009 4Q2009 1Q2010 2Q2010 FY Dec 2009A 2010F 2011F 2012FTurnover 141 125 460 979 Revenues (S$ m)Cost of Goods Sold (101) (123) (336) (465) UK 448 467 484 484Gross Profit 40 2 125 514 Singapore 0 3,334 4,332 5,202Other Oper. (Exp)/Inc (11) (13) 20 (87) Others 43 43 43 43Operating Profit 29 (11) 145 427Other Non Opg (Exp)/Inc 1 1 2 2Associates & JV Inc (1) 13 (1) 0 Total 491 3,844 4,859 5,728Net Interest (Exp)/Inc (13) (12) (22) (41) Operating Profit (S$ m)Exceptional Gain/(Loss) (101) (94) (504) 0 UK 23 4 5 5Pre-tax Profit (84) (103) (378) 390 Singapore (130) 1,055 1,366 1,660Tax (9) 1 (18) 7 Others 141 (25) (15) (15)Minority Interest 0 0 0 0

Net Profit (93) (102) (396) 397Net profit bef Except. 8 (7) 108 398 Total 34 1,034 1,356 1,650EBITDA 39 15 175 518 Operating Profit Margins (%)

UK 5.1 1.0 1.0 1.0Sales Gth (%) 17.1 (11.2) 268.4 112.7 Singapore N/A 31.6 31.5 31.9EBITDA Gth (%) (823.6) (61.5) 1,067.0 196.3 Others 328.5 (58.2) (34.9) (34.9)Opg Profit Gth (%) 513.9 (138.7) (1,410.2) 195.0Net Profit Gth (%) 84.3 8.9 289.7 (200.1)Gross Margins (%) 28.3 1.5 27.1 52.5 Total 6.9 26.9 27.9 28.8Opg Profit Margins (%) 20.3 (8.8) 31.4 43.6Net Profit Margins (%) (66.3) (81.4) (86.1) 40.5

Source: Company, DBS Vickers


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DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows:

STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)BUY (>15% total return over the next 12 months for small caps, >10% for large caps)HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)FULLY VALUED (negative total return i.e. > -10% over the next 12 months)SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)Share price appreciation + dividends

DBS Vickers Research is available on the following electronic platforms: DBS Vickers (www.dbsvresearch.com); Thomson(www.thomson.com/financial); Factset (www.factset.com); Reuters (www.rbr.reuters.com); Capital IQ (www.capitaliq.com) and Bloomberg(DBSR GO). For access, please contact your DBSV salesperson.

GENERAL DISCLOSURE/DISCLAIMERThis document is published by DBS Vickers Research (Singapore) Pte Ltd ("DBSVR"), a direct wholly-owned subsidiary of DBS VickersSecurities (Singapore) Pte Ltd ("DBSVS") and an indirect wholly-owned subsidiary of DBS Vickers Securities Holdings Pte Ltd ("DBSVH").[This report is intended for clients of DBSV Group only and no part of this document may be (i) copied, photocopied or duplicated in any

form by any means or (ii) redistributed without the prior written consent of DBSVR.]

The research is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty asto its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared forgeneral circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financialsituation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be takenin substitution for the exercise of judgement by addressees, who should obtain separate legal or financial advice. DBSVR accepts no liabilitywhatsoever for any direct or consequential loss arising from any use of this document or further communication given in relation to thisdocument. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. DBSVH is a wholly-owned subsidiary of DBS Bank Ltd. DBS Bank Ltd along with its affiliates and/or persons associated with any of them may from time totime have interests in the securities mentioned in this document. DBSVR, DBSVS, DBS Bank Ltd and their associates, their directors, and/oremployees may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to performbroking, investment banking and other banking services for these companies.

The assumptions for commodities in this report are for the purpose of forecasting earnings of the companies mentioned herein. They arenot to be construed as recommendations to trade in the physical commodities or in futures contracts relating to the commodities

mentioned in this report.

DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transactionas a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarificationon disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

ANALYST CERTIFICATIONThe research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about thecompanies and their securities expressed in this report accurately reflect his/her personal views. The analyst also certifies that no part ofhis/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of13 Aug 2010, the analyst and his / her spouse and/or relatives who are financially dependent on the analyst, do not hold interests in thesecurities recommended in this report (interest includes direct or indirect ownership of securities, directorships and trustee positions).

COMPANY-SPECIFIC / REGULATORY DISCLOSURES1. DBS Vickers Securities (Singapore) Pte Ltd and its subsidiaries do not have a proprietary position in the mentioned

company as of 11-Aug-20102. DBS Bank Ltd has been appointed as the designated market maker of structured warrant(s) for Genting Singapore issued

by DBS Bank Ltd.3. DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBS Vickers Securities (USA) Inc ("DBSVUSA"), a U.S.-registered

broker-dealer, may beneficially own a total of 1% or more of any class of common equity securities of the mentionedcompany as of 13 Aug 2010.

4. Compensation for investment banking services:i. DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA have received compensation, within the past 12

months, and within the next 3 months receive or intends to seek compensation for investment banking servicesfrom the Genting Singapore.

ii. DBSVUSA does not have its own investment banking or research department, nor has it participated in anyinvestment banking transaction as a manager or co-manager in the past twelve months. Any US persons wishing toobtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction inany security discussed in this document should contact DBSVUSA exclusively.


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13 Aug 2010 Genting Singapore

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