The Wharf (Holdings) Limited

Transcription

1 The Wharf (Holdings) Limited Established 1886 Wheelock Square Shanghai December The Wharf 2011 (Holdings) Limited 1

2 Wharf Corporate Profile Established in 1886 with a distinguished history of Building for Tomorrow Primary focus is in Properties which represented 91% of business assets as at Strategic differentiation is manifested in the success of Harbour City and Times Square, which represented 64% of operating profit for 1H11 Growth - target to have 50% of Group s business assets in Mainland China in medium term; 39% at ; landbank at 12.4M s.m., with next milestone at 15M s.m. The Wharf (Holdings) Limited 2

3 Wharf Corporate Structure Wheelock and Company Limited (HKEx Stock Code: 0020.HK) The Wharf (Holdings) Limited (HKEx Stock Code: 0004.HK) Hong Kong Properties China Properties Non Property Businesses* * Include Modern Terminals, HK Air Cargo Terminals, Marco Polo Hotels, & Communication, Media and Entertainment (CME) The Wharf (Holdings) Limited 3

4 Corporate Business Structure Mr. Peter Woo, GBS, JP Chairman Mr. Stephen Ng Deputy Chairman & MD HK & China IP HK DP China DP Non Property Ms. Doreen Lee Senior MD Mr Douglas Woo Vice Chairman & MD Mr. Ricky Wong MD Mr Andrew Chow Chairman Mr TY Ng Vice Chairman & Senior MD Mr. Stephen Ng Chairman Wharf Development Limited Wharf China Development Limited Wharf China Estates Limited The Wharf (Holdings) Limited 4

5 China Phases of economic development Experimentation ( ) Special economic zones in coastal cities as China s nationwide infrastructure support was inadequate Execution & Growth ( today) In 1992, Shanghai economy was opened & other cities swiftly followed Economic growth supported by infrastructure buildup to link up the country The Future (today + 20 years) High-speed rail grid will shrink the country Dynamic urbanization expected, with domestic demand as key growth engine RMB B China GDP ( ) YoY Growth RMB Disposable Income Per Capita of Urban Households ( ) YoY Growth 45,000 40,000 GDP YoY Growth 16% 14% 25,000 Disposable Incomer per Capita YoY Growth 16% 14% 35,000 12% 20,000 12% 30,000 25,000 10% 15,000 10% 20,000 8% 8% 15,000 6% 10,000 6% 10,000 4% 5,000 4% 5,000 2% 2% % % The Wharf (Holdings) Limited 5

6 China Rail grid will change life High speed rail will reduce travelling time between major Chinese cities by 60% to create the one-day living sphere Beijing Chengdu Wuhan Shanghai Guangzhou Source: CB Richard Ellis The Wharf (Holdings) Limited 6

7 China Expand with metropolitan zones The nine city clusters account for 52% of population & 74% of GDP* There will be 8 mega cities by 2025 as compared with 2 in 2005, housing 41% of China s higher income class living. Overall, China is heading towards a dispersed urbanization pattern with midsized and small cities. These cities, together with megacities, will drive future growth. McKinsey research 2009 * Source: CB Richard Ellis The Wharf (Holdings) Limited 7

8 Hong Kong A unique position A unique city driven by China s growth and its own characters... China HK Economic Partnership continues HK companies has facilitated China s economic growth since 1978, initially along the Southern Coastal Provinces before moving to inland Provinces HK is the servicing & financing platform for China Foreign direct investments into China. Chinese companies expanding abroad, tourism, and offshore RMB centre Other special characters 4 cornerstones - zero import tax, wide merchandize selectivity, genuine & authenticity and confidentiality A free port, low & simple taxation regime; no inherent tax and no sales tax Any overhang of political risks from the 1997 sovereignty change have disappeared The Wharf (Holdings) Limited 8

9 Hong Kong Favorable China s policy The 12th Five-Year Plan ( ) offer ample opportunities for HK companies Key theme is to change the economic development model for China: Moving up the value chain; reducing reliance on low cost manufacturing Stimulating domestic demand as a key driver for GDP growth Expanding contribution of the service sector by 4%-points Continuing urbanization Dedicated a chapter in supporting Hong Kong: CEPA continues (Closer Economic Partnership Arrangement) Leverage Hong Kong's servicing platforms to facilitate China's economic growth Develop Hong Kong as the offshore RMB centre and an international asset management centre The Wharf (Holdings) Limited 9

10 Hong Kong Properties The HK investment portfolio represents 8.3% HK s retail sales. With a combined value of HK$119B at , Harbour City and Times Square represented 47% of the business assets of the Group, and generated 64% of operating profit Ms Doreen Lee Senior MD In 1H11, retail sales at Harbour City and Times Square accounted for an unmatched 8.3% share of HK s total retail sales, up from 7.9% in 1H10 The Wharf (Holdings) Limited 10

11 Hong Kong Properties Harbour City Building for Tomorrow from a wharf godown to a shopping mall... Early 80 s Now The Wharf (Holdings) Limited 11

12 Hong Kong Properties Harbour City A record performance Property Value (excl. Hotels) at : HK$87.1B Attributable GFA (s.f.) 1H11 (HK$M) 1H10 (HK$M) % Change FY10 (HK$M) Retail 1,948,000 1,723 1, % 2,928 Office 4,435, % 1,553 Serviced Apartments 670, % 275 Hotel and Club 1,364, % 1,056 Total: 8,417,000 3,186 2, % 5,812 The Wharf (Holdings) Limited 12

13 Hong Kong Properties Harbour City Harbour City generated 6.2% of HK retail sales, envy of others Largest mall in town, representing 75% of retail area of Canton Road Retail generated 54% of HC s revenue in 1H11 from only 23% of HC s area Retail sales: +35% for 10/2011 YTD, outperformed HK market by 10% points Continues to provide a captivating shoppertainment experience to shoppers through a finely calibrated trade mix and innovative marketing campaigns The Wharf (Holdings) Limited 13

14 Hong Kong Properties Harbour City Strong performance from other components Office Occupancy and spot rent trended up strongly during 1H11 Occupancy at : 95% Lease renewal retention rate: 73% Serviced Apartments Occupancy at : 94% Favorable rental growth The Wharf (Holdings) Limited 14

15 Hong Kong Properties Times Square Building for Tomorrow from a tram depot to a shopping mall... Late 80 s Now The Wharf (Holdings) Limited 15

16 Hong Kong Properties Times Square A record performance Property Value at : HK$32B Attributable GFA (s.f.) 1H11 (HK$M) 1H10 (HK$M) % Change FY10 (HK$M) Retail 936, % 1,076 Office 1,033, % 457 Total: 1,969, % 1,533 The Wharf (Holdings) Limited 16

17 Hong Kong Properties Times Square Times Square is the most successful vertical shopping mall in HK... Retail Full occupancy Retail generated 72% of TS s revenue in 1H11 while represents only 48% of area Tenant mix on the atrium floors fine-tuned to uplift the shopping ambiance Office Occupancy at : 96%, strong growth in spot rents in 1H11 Lease renewal retention rate: 28% as some tenants moved to fringe locations Vacated space rapidly absorbed by new tenants, including relocation from Central / Wanchai The Wharf (Holdings) Limited 17

18 Other Hong Kong Properties Victoria Peak is the most sought after residential address in HK The Peak Portfolio (400,000 s.f.): Existing developments 1H11 occupancy: 90%+, strong rental growth Mt Nicholson - master layout plan & GBP approved Mr Douglas Woo VC & MD No. 1 Plantation Road, Mountain Court, Chelsea Court and 77 Peak Road all have redevelopment potential Other developments: One Mid-town, Kowloon Godown, Yau Tong Godown, Yau Tong projects, Wharf T&T Square, are at different development stages Mr Ricky Wong MD The Wharf (Holdings) Limited 18

19 Other Hong Kong Properties Mt Nicholson Mt Nicholson services the top 1-2% of most affluent in Asia A unique, rare and high quality development Private half-mile access road offers ultimate privacy Rare low density site on HK Island Ultimate top social status & recognition World class designers and architects Buyer types Upgraders and Villa as status symbol (HK & China), Pied-a-terre (SE Asia & China) Project details 50:50 JV with Nan Fung; attributable GFA: 162,000 s.f.; completion: Q The Wharf (Holdings) Limited 19

20 China Properties Building for tomorrow Wharf China has expanded to 5 regions,13 cities, 40+ projects China West: Chengdu Chongqing Foshan Others: Dalian Tianjin Wuhan Changsha China East: Changzhou Wuxi Suzhou Shanghai Hangzhou Ningbo with a team of over 1000 professionals. The Wharf (Holdings) Limited 20

21 China Properties Building for Tomorrow PRC assets reached 39% of Group assets at 6/ China Portfolio Acquired sites in 1H11 in Changsha, Hangzhou, Suzhou & Foshan (attributable GFA: 2M s.m.) for RMB13B Land bank: +17% to 12.4M s.m. at 6/2011, spanning across 13 cities; on track to next milestone of 15M s.m. The RMB required for o/s land payments has been fully covered Continue to develop local execution knowhow Development Properties Contracted sales to 10/2011: RMB11.2B, 750,000 s.m. were sold Net order book increased to RMB18.1B for 1.2M s.m completion target: 550,000 s.m. (1H11: 160,000 s.m.) Investment Properties Wheelock Square completed in 2010 is leasing well Completed IPs were valued at HK$13B at 6/2011 Development progress of 5 IFCs as planned The Wharf (Holdings) Limited 21

22 China Properties Landbank China landbank on course for the 15M s.m. milestone GFA by Region Region Attributable GFA s.m. East 6.3M Office 15% GFA by Land Use Retail 8% West 4.3M Others 1.8M Hotel 3% TOTAL 12.4M 12.4M s.m. landbank split by cities RMB 65.4B cost split by cities East: 51% West: 35% Suzhou 16% Wuxi 15% Changzhou 8% Chengdu 21% Chongqing 14% Others 14% Shanghai Hangzhou 5% 7% Changzhou 4% Hangzhou 12% Shanghai 13% The Wharf (Holdings) Limited 22 Suzhou 12% Wuxi 6% Chengdu 20% Chongqing 10% Others 23% East: 47% Residential 74% West: 30% Others: 14% Others: 23%

23 China Development Properties New Growth Engine 1H11 Turnover: +31% to HK$1,343M (FY10: HK$3.6B) 1H11 Operating Margin: 42% Mr Andrew Chow Chairman Contracted Sales to 10/2011: RMB11.2B 2011 completion target: 550,000 s.m. (1H11: 160,000 s.m.) Mr T Y Ng Vice Chairman The Wharf (Holdings) Limited 23

24 China Development Properties Sales Sales diversity to minimize concentration risk New projects City Product Attributable GFA sold (sm) ^ Attributable Proceeds (RMB M) ^ Average Price (RMB psm) ^ Times City Suzhou High-rise 29, ,900 The U World Chongqing High-rise 32, ,100 Peaceland Cove Tianjin High-rise 38, ,100 Magnificent Tianjin High-rise 28, ,300 Projects previously launched City Product Attributable GFA sold (sm) ^ Attributable Proceeds (RMB M) ^ Average Price (RMB psm) ^ Xiyuan Shanghai Medium-rise 17, ,700 Times Riverside, Times 8 Chengdu High-rise / office 41, ,500 Times Palace Changzhou High-rise / villas 85, ,200 Ambassador Villa Suzhou Villas 7, ,100 Int l Community Chongqing High-rise 72, ,900 ^All data for 1H2011 The Wharf (Holdings) Limited 24

25 China Development Properties PRC property progress as planned Contracted Sales Project Completions RMB'B 000's.m * ,100* 1,600* *provisional data The Wharf (Holdings) Limited 25

26 China Investment Properties IP portfolio will grow when 5 IFCs will be rolled out ( ) Wuxi IFC Shanghai Wheelock Square Suzhou IFC (2016) Suzhou IFC Chengdu IFC (2013) Chongqing IFC (2015) Changsha IFC (2016) The Wharf (Holdings) Limited 26

27 China Investment Properties Recurrent rental earnings boosted by Wheelock Square 1H11 Performance Turnover: +34% to HK$317M (FY10: HK$470M) Operating profit: +39% to HK$193M Over 70% office area at Shanghai Wheelock Square leased, with latest monthly rental rates at over RMB400psm Chongqing TS transformed into a modern & stylish shopping mall in 3Q2011 Dalian TS registered a 38% growth in retail sales p.s.m. with 100% occupancy Shanghai TS performed satisfactorily with 93% retail and 96% office occupancy The Wharf (Holdings) Limited 27

28 China Investment Properties Recurrent earning base will substantially increase from 2013 IP Portfolio GFA^ growth over time 000's.m ,300 Completion timetable Chengdu IFC * ,100 Chongqing IFC Wuxi IFC By 2015 Suzhou IFC By 2016 Changsha IFC By ~ 2016 ^ Includes office / residential areas that may be for sale * Includes Shanghai Wheelock Square, Times Squares in Shanghai, Chongqing and Dalian The Wharf (Holdings) Limited 28

29 2010 Economic Indicators Untapped potential to be realized Mainland Chengdu Chongqing Wuxi Suzhou Changsha GDP Growth 10.3% 15.0% 17.1% 13.1% 13.2% 15.5% Population ( M) 1, Retail sales growth 18.3% 24.0% 18.5% 18.6% 18.7% 19.9% Urban disposable income per capita (RMB) % change Investment in fixed asset (RMB B) 19,000 21,000 18,000 28,000 33,000 23, % 11.7% 11.3% 10.9% 10.9% 12.7% 27, Source: National Bureau of Statistics (2010 data), Statistics Bureaus of various cities (2010 data) The Wharf (Holdings) Limited 29

30 China Investment Properties Wheelock Square Tallest Landmark office tower in Puxi at 270 metres Brand new landmark office tower with GFA of 114,000 s.m. The tallest building in Puxi (270-metre) overlooking Jing an Park Currently, over 80% committed; latest monthly rental rates at over RMB400psm. High floors will command higher rates Tenants include multinationals and major corporations Awarded Best Business Centre by MIPIM Asia Awards 2011 in 9/2011 The Wharf (Holdings) Limited 30

31 China Investment Properties IFC Series 5 IFCs to be rolled out in Chengdu IFC GFA 439,000 s.m.* The Group s next flagship IP in the busiest pedestrian shopping area of Chengdu. Comprises retail, Grade A offices, 5-star hotel and luxury residences Construction of Phase 1 (retail and an office tower) is scheduled for completion in mid 2013 Chongqing IFC GFA 223,000 s.m.* 50:50 JV with COLI; located in the new CBD of Chongqing Comprises up-market retail, Grade A offices, 5-star hotel and serviced apartments Construction is underway; full completion in 2015 * GFA represents plot-ratio GFA and excludes commercial areas below ground The Wharf (Holdings) Limited 31

32 China Investment Properties IFC Series 5 IFCs to be rolled out in Suzhou IFC - GFA 351,000 s.m.* Tallest skyscraper in Suzhou overlooking Jinji Lake Comprises Grade A offices, 5-star hotel and luxury apartments Wuxi IFC GFA 280,000 s.m.* Tallest skyscraper in Taihu Plaza, Wuxi s new CBD Comprises Grade A offices, 5-star hotel and luxury residences Changsha IFC GFA 700,000 s.m.* Acquired in 1/2011, a prime site in the city centre Comprise 3 towers (2 in excess of 300m in height) atop a 250,000 s.m. retail podium Comprises upscale retail, Grade A offices, 5-star hotel & luxury apartments. Construction will start in late * GFA represents plot-ratio GFA and excludes commercial areas below ground The Wharf (Holdings) Limited 32

33 Other Non-Property Businesses Strong recurring income base Mr. Stephen Ng Chairman Hotel MTL CME The Wharf (Holdings) Limited 33

34 Marco Polo Hotels A solid performer 10 operating Marco Polo hotels in Asia Pacific region 1H11 Revenue: +11% to HK$593M (FY10: HK$1.2B) Awarded Best International Hotel Management Group of China by China Hotel Starlight Awards in 3/2011 The managed Marco Polo Foshan in Lingnan Tiandi will open in 2011 From 2012 onwards, new Marco Polo hotels in Changzhou, Chengdu, Chongqing, Manila, Guiyang, Suzhou and Wuxi will come on stream The Wharf (Holdings) Limited 34

35 Modern Terminals The first container terminal operator in HK, 33% market share today 1H11 Revenue: +6% to HK$1,620M (FY10: HK$3.3B) Leveraging on HK base, expand into Pearl River Delta and Yangtze River Delta, the 2 largest manufacturing hubs in PRC: PRD: Da Chan Bay (DCB) YRD: Taicang International Gateway 1H11 Throughput Kwai Tsing (HK): +1% to 2.7M TEUs Taicang (YRD): +9% to 685K TEUs DCB (PRD): +19% to 343K TEUs The Wharf (Holdings) Limited 35

36 Communication, Media & Entertainment Steady results i-cable CABLE TV is the first multi-channel Pay TV service in HK; subscribers' base exceeds 1.1M 1H11 Revenue: +9% to HK1,051M (FY10: HK$2.0B) Wharf T&T Wharf T&T is the second largest fixed line operator and the first and only comprehensive ICT service provider in HK focusing on the business sector 1H11 Revenue: +6% to HK$879M (FY10: HK$1.7B) The Wharf (Holdings) Limited 36

37 Financial Highlights 1H2011 1H11 (HK$M) The Wharf (Holdings) Limited 37 1H10 (HK$M) Turnover 9,745 8,622 Operating Profit 4,980 4,516 Profit attributable to equity shareholders 14,302 10,892 EPS (HK$) EPS before Property Revaluation Surplus (HK$) DPS (HK$) As at As at Total assets 281, ,225 Total business assets 257, ,237 Net debt 42,494 32,689 Total equity 193,961* 170,649 NAV per share (HK$) Net debt to total equity 21.9% 19.2% * Wharf raised HK$10 billion equity through a rights issue in March 2011

38 Financial Highlights FY2010 FY10 (HK$M) FY09 (HK$M) Turnover 19,380 17,553 Operating Profit 9,372 8,554 Profit attributable to equity shareholders 35,750 19,256 EPS (HK$) EPS before Property Revaluation Surplus (HK$) DPS (HK$) As at As at Total assets 242, ,461 Total business assets 220, ,576 Net debt 32,689* 21,432 Total equity 170,649* 135,588 NAV per share (HK$) Net debt to total equity 19.2% 15.8% *Wharf raised HK$10billion equity through a rights issue in March 2011 The Wharf (Holdings) Limited 38

39 Financial Highlights Hong Kong properties remain the driver; China is growing % of Group Total Business Assets 8% 1% % of Group Operating Profit 14% 3% 34% 57% 16% 67% HK$257.1B HK Properties (excl. Hotels) China Properties Logistics CME & Others HK$5.0B * China assets: 39% as at (Properties: 34%, Logistics: 5%) The Wharf (Holdings) Limited 39

40 Financial Highlights Prudent financial management with 21.9% gearing Net debt (HK$ M) (HK$ M) Wharf (excluding below subsidiaries) 33,503 23,376 MTL 11,054 9,932 HCDL (1,694) (172) i-cable (369) (447) Total: 42,494 32,689 Gearing (net debt to total equity*) 21.9% 19.2% *Wharf raised HK$10B equity through a rights issue in 3/2011 The Wharf (Holdings) Limited 40

41 Financial Highlights Multiple sources of income and funding Strong recurring income base Investment Properties Harbour City, Times Square, China IPs Logistics and Hotels Multiple sources of funding and revenue Equity - HK$10B rights issue in 3/2011 Debt - HK$6.2B CB in 6/ S$670M bonds (HK$4.1B) in July / October 2011 At , cash balance: HK$20B, undrawn bank facilities: HK$23B China contracted sales of RMB11.2B (HK$14B) up to 10/2011 The Wharf (Holdings) Limited 41

42 End of Presentation Wheelock and Company Limited [HKEx Stock Code: 0020.HK] The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK] Disclaimer All information and data are provided for information purposes only. All opinions included herein constitute Wharf s judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries and affiliates hereby disclaim (i) all express, implied, and statutory warranties of any kind to user and/or any third party including warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information and data contained herein. The Wharf (Holdings) Limited 42

43 Appendix Conversion Reference US$ 1 = HK$ 7.80* HK$ 1 = US$ US$ 1 = RMB 6.365^ RMB 1 = US$ Sq foot = Sq metre 1 Sq metre = Sq feet * - Under the Linked Exchange Rate System of Hong Kong, HK Dollar is fixed with US Dollar ^ - The mid-rate as announced by The People s Bank of China on The Wharf (Holdings) Limited 43