The Wharf (Holdings) Limited

Transcription

1 IP Momentum Continues as The Wharf (Holdings) Limited Macro Environment Causes Concern 2015 Interim Results 18 August

2 IP Book Value (HKD billion) Quality Landlord New High $307B Value Creation Driving Growth H15 * Excluding hotels, except for those still under development in IFSs 2

3 IP Core Profit (HKD billion) IP Core Profit +12% to $4.2B % of Group Core Profit (1H14:75%) Core Profit +5% to $5.3B 12.0% 8.0% 8.0% 72.0% HKIP China IP China DP Others H15 3

4 Total IP Revenue (HKD billion) China 13.4 HK 1H15 Total IP (excl. hotel) Revenue +12% to $7.2B Amidst Challenging Environment Continuous AEIs & New IPs Driving Growth IP Revenue HK China Total Retail +9% +43% +13% Office +10% +13% +10% H15 Total +9% +34% +12% * In Jul 2010, Chongqing TS mall was closed for renovation and hence impacted the rental revenue during the period 4

5 HK$ Million 1H15 1H14 % Chg Group Revenue 17,906 16, % Operating Profit 7,475 7,124 +5% Core Profit** 5,258 5,019 +5% Greentown Ceased to be Classified as Associate Profit Before IP Revaluation Surplus 3,793 4,809-21% For 1H15 Net IP Revaluation Surplus 3,165 6,892-54% Profit attributable to shareholders 6,958 11,701-41% Earnings Per Share (HK$) - Attributable to Shareholders $2.30 $ % - Core** $1.73 $ % Zero Contribution to Core Profit Plus A $1.5B Accounting Loss (vs. $2.2B Accounting Gain in 2012 on Initial Classification as Associate) Dividend Per Share (HK$) $0.55 $ **Exclude IP revaluation surplus and exceptional items 5

6 Agenda HKIP China IP China DP Other Businesses Financial Management Coming Attractions 6

7 HK Retail Sales (HKD billion) Q Weak Macro Environment H15-1.6% 3Q 2Q Huge Challenges Q

8 HKD billion PH sales +4.9% 35.0 HC 12.0 TS H15-7.1% H15-9.6% Q 3 Q 2 Q 1 Q Confidence in Our Business Policies Consistently Pursuing Practices to Weather Downturn Numerous Ongoing Capital Projects Continued Mall Enhancements

9 Promotions by HKTB Global Price Harmonization By International Brands HKTB Stepped Up Efforts to Attract Tourists Solid Local Spending Sentiments 9

10 3 Malls Retail Revenue (HKD billion) Strong Retailers Demand 9.0 1H 2H Continues Tenants Take Long Term View, Selective Location & Destination % Diversity & Demand within H15 HC Ecosystem Retail Revenue Growth HC $2,993M +7% TS $990M +9% PH $263M +3% 10

11 HC Retail Revenue (HKD billion) 6.0 1H 2H Critical Mass Long Tenant Waiting List % Must-have Address for Celebrated Brands New Anchor Tenants F&B Enrichment H15 OT Renovation End Storey Extension Building 2H

12 2.0 TS Retail Revenue (HKD billion) 1H 2H 8% Lettable Area Under Renovation in 1H15 On-going Trade Mix Revamp (by End-2015/Early 2016) Addition of Sought-after International Big Brands (3-4/F) % H15 New Kids Category in 2015 F&B Enrichment 9-10/F Lifestyle Hub (By End-2015) Largest Sports Cluster (on HK Island) 12

13 Brands Newly Recruited or Committed Expansion HC TS Continued to Attract International Brands Many Hong Kong/Kowloon Debuts 13

14 HC TS Steady Foot Traffic Growth Collaborated with HKTB to Boost HK Tourism Back-to-back Large Scale Events Proactively Exploring SE Asia Markets 14

15 Agenda HKIP China IP China DP Other Businesses Financial Management Coming Attractions 15

16 China IP Revenue (HKD billion) 2.5 1H 2H 2.0 Revenue +34% to $1,121M % Outperformed 10-yr CAGR Operating Profit H15 +39% to $589M CDIFS & SWS* Key Contributors *SWS Shanghai Wheelock Square * In Jul 2010, Chongqing TS mall was closed for renovation and hence impacted the rental revenue during the period 16

17 1H15 Mall Performance On Track to Meet Target Full Operation in 1H15 RMB billion 2.5 1H15 Retail Sales 54% of FY Target RMB3B RMB million 600 1H15 Retail Revenue 51% of FY Target RMB600M Sales +131% to RMB1.6B Beat Expectation 2.0 1H 2H 500 1H 2H Revenue +85% to RMB304M Foot Traffic +100% Niccolo Hotel Soft Opening in Apr Performance Beat Expectation Room Rates Among the Top 17

18 T1-T3 Leasing Status T1- T3 81,800 s.m 81,800 s.m (30%) Committed in 1.5 Years (~SWS* in 1.5 Yrs: 85,500 s.m) 152,800 s.m (55%) RMB /s.m/month (Amongst the Highest in CD) 41,400 s.m (15%) Take-up Rates Among the Highest in CD Committed Under Offer/Discussion To Be Leased T2 & T3 150,000 s.m Available for Lease since End-2014 *SWS Shanghai Wheelock Square 18

19 IFSs Mall Opening Schedule & Leasing Status CDIFS Jan 2014 Virtually Fully Leased CSIFS 3Q 2017 Just Started Leasing >30% Under Offer & Discussion CQIFS Early-2017 >60% Under Offer & Discussion CDIFS Serviced Apartment by 2Q 2016 in Phases CSIFS Most Prime Location Most Comprehensive Mall CQIFS A Boutique-sized HC 19

20 Chengdu Times Outlets (CTO) Retail Sales (RMB million) 1,600 Surging Demand among Growing Middle Class 1,400 1,200 1, % CTO Among Most Productive Outlets 800 1,516 1H15 Sales +22% 600 1,253 1H15 Revenue +23% New CS Times Outlets Completion by End H15 Further Growth Impetus 20

21 Agenda HKIP China IP China DP Other Businesses Financial Management Coming Attractions 21

22 China DP Contracted Sales (RMB billion) H 2H 50 Projects in 14 Cities % Accumulated Sell-through Rate as of 1H Sellable Resources 2.8M s.m Landbank 9.6M s.m H15 1H15 Contracted Sales RMB10.3B +16% Contracted GFA 626,000 s.m -2% Contracted ASP RMB16,200/s.m +22% * 2015 Sales Target: No less than RMB21.5B achieved in

23 China DP Revenue (Excl. JVs & Associates) (HKD billion) 1H 2H FY Target Completion 1.7M s.m Net Order Book RMB24B GFA 1.6M s.m % H15 1H15 Operating Matrix Revenue* $6,562M +26% Revenue** $9,831M +9% Operating Profit* $1,134M +35% Operating Margin* 17% +1ppt Operating Profit** $1,508M +14% Completed GFA 470,000 s.m -4% Recognized GFA 605,000 s.m -3% * Subsidiaries only ** Incl. JVs & Associates 23

24 Date City Attributable GFA (s.m) Attributable Consideration (RMB) Ownership Jan15 Beijing 44, B 25% Jan15 Beijing 39, B 25% Mar15 Foshan 48, B 50% Prudent & Selective Land Acquisition Strategy Capture Valuable New Prime Opportunities Jun15 Hangzhou 43, B 100% Geographical Focus on Tier 1 & Top Tier 2 Cities (eg. Hangzhou & Suzhou) Jun15 Hangzhou 53, B 100% Total 230, B 24

25 Agenda HKIP China IP China DP Other Businesses Financial Management Coming Attractions 25

26 Mount Nicholson (Peak Property) Launch Date 2H 2015 Product Type 19 Villas (6,000-10,000 s.f) 48 Apartments (4,200-4,500 s.f) Broad Range of Projects Expected OP 2015 Peninsula East (Kowloon East) Launch Date Apr 2015 Prestigious Peak Properties 2 Different Products Sale on Demand Product Type Sales Proceeds 256 Units ( s.f) Sold Out in 2 Days $2.0B Expected OP

27 Throughput (TEU million) 2.0 Taicang 1H 2H 1.5 Da Chan Bay 1H 2H Revenue $1,382M (1H14: $1,618M) % % Operating Profit $327M (1H14: $508M) HK Throughput 2.0M TEUs Sold 50% MTL s Stake in Taicang to Ningbo Port Co. Ltd. in Jul H H15 27

28 Highlights Challenging Environment in HK 1H15 Revenue $718M (1H14: $760M) 1H15 Operating Profit $115M (1H14: $189M) Sophisticated Urban Chic 1 st Niccolo Hotel Opened in CD Followed by CQ, CS & Suzhou Best New Hotel Brand- Ultra Luxury (at 5 th China Hotel Awards by Lifestyle Magazine ) 28

29 Wharf T&T 1H15 Wharf T&T (20 th Anniversary) Revenue +5% to $990M Operating Profit +5% to $173M Solid Business Performance Notwithstanding a Weakened Demand i-cable 1H15 Challenging Revenue -10% to $760M Net Loss $121M Operating Environment Application for Pay TV License Renewal Underway 29

30 Agenda HKIP China IP China DP Other Businesses Financial Management Coming Attractions 30

31 30.0% Net Debt to Total Equity 25.0% 20.0% 23.4% 21.1% 25.6% 18.8% 19.2% 20.6% 21.7% 20.4% 18.9% 19.6% 15.0% 15.8% Net Debt to Total Equity 19.6% 10.0% H15 Net Debt / (Cash) (HKD billion) Wharf (exclude below subsidiaries) 30 Jun Jun MTL HCDL (0.7) 0.8 i-cable 0.2 (0.1) Group Total Net Debt to Total Equity 19.6% 20.6% Own Net Debt $51.9B 31

32 Average Interest Cost 4.0% 3.2% 3.2% 3.0% 2.0% 2.3% 2.8% 2.8% 2.0% 1.0% H15 Average Interest Cost 2.8% Debt Maturity (HKD billion) Jul15-Jun16 Jul16-Jun17 Jul17-Jun18 Jul18-Jun19 Jul19-Jun20 Jul20 & After 32

33 Major Capital and Development Expenditure (HKD billion) Diversified & Multiple Sources Rental Income from Investment Properties (HK & China) $5.9B Operating Profit 1H HKD China DP $17.2B self-financed by sales China IP mainly IFSs under construction 1H15 (Actual) FY15 (Projected) FY16 (Projected) China DP $9.2B $17.2B $11.9B China IP $1.4B $5.7B $7.4B HKIP $0.6B $1.2B $0.9B Others $0.8B $3.6B $4.4B Total $12.0B $27.7B $24.6B Logistics, Hotels & CME China Property Sales Cash Balance Undrawn Bank Facilities Available-for-sale Investments (Immediately Available for Liquidation) $0.5B Operating Profit 1H15 RMB10.3B 1H15 $16.7B as of 30 Jun 2015 $17.9B as of 30 Jun 2015 $9.6B Market Value as of 30 Jun

34 Agenda HKIP China IP China DP Other Businesses Financial Management Coming Attractions 34

35 OT Renovation and 4-storey Extension Building CDIFS Phase 2 (T2, Niccolo Hotel, Serviced Apartment) CQIFS 35

36 CORPORATE SOCIAL RESPONSIBILITY (CSR)

37 Major Achievements Issued a Standalone CSR Report complying to international (GRI) sustainability reporting guidelines To protect the environment and reduce paper consumption, the report is available in e-version on corporate website Listed on the Hang Seng Corporate Sustainability Index Has been selected as a constituent member of the Hang Seng Corporate Sustainability Benchmark Index since To be listed on Index of the tradable series on 14 September 2015.

38 Appendix 38

39 1H15 IP Revenue: $7,174M By Business 1H15 IP Valuation: $291.5B By Business 3% 9% 26% 34% 57% 71% Proactive Retail Management Retail Office S.A & Others Retail Office S.A & Others 16% 15% 84% 85% HK China HK China 39

40 1H15 (HKD million) Harbour City Times Square Plaza Hollywood Revenue % Chg Revenue % Chg Revenue % Chg Retail 2,993 7% 990 9% 263 3% Office 1,145 11% 329 2% - - Hotels & Club % Serviced Apt % Outstanding Performance Total 4,907 5% 1,319 7% 263 3% Valuation* as of 30 Jun 2015 Retail Sales Jan-Jun H15 Avg. Retail Passing Rent (HK$ psf per Month) $169.9B $52.9B $9.2B $15.6B (-7.1%) $4.7B (-9.6%) $1.3B (+4.9%) $426 $287 $101 * Incl. hotels at valuation as of 30 Jun

41 210.0 Retail Valuation (HKD billion) 12.5 HK & China IP Operating Profit (HKD billion) Consistent Growth H H15 41

42 60.0 Commercial Properties Completion Schedule (Million s.f) 53M s.f Changsha IFS Suzhou IFS Changsha Outlets Wuxi IFS Chongqing IFS* Chengdu IFS Other China Commercial Prop. HK Commercial Prop. Total development area, incl. basement area & carpark *Gross Basis Total Commercial Properties in HK & China Reaching 53M s.f by

43 Wuxi IFS 250,000 s.m. Grade A offices & hotel No Retail 339m tower Taihu Plaza CBD wholly-owned 2016 Chongqing IFS 645,000 s.m.* Retail, Grade A offices & hotel Retail 102,000 s.m. 300m tower Suzhou IFS 368,000 s.m. Grade A offices, apartments & hotel No Retail 450m tower Suzhou new CBD 80:20 JV with Genway 2017 Changsha IFS 1,026,000 s.m. Retail, Grade A offices & hotel Retail 230,000 s.m. 452m tower New IFSs Future Growth Engine Jiangbei new CBD 50:50 JV with COLI Prime city center wholly-owned * Gross area

44 1H15 Tertiary Industry +10% 54% of CD GDP (National: 49.5%) Chengdu 3% Population 1H15 GDP 14 million +8.0% (national avg.: +7.0%) Financial Center & Trading Hub in SW China 1H15 Retail Sales +10.5% 54% 43% 1H15 Disposable Income per Capita RMB17, % Thriving City for Business Startup No. of Fortune 500 companies in 1H Primary Secondary Tertiary 44

45 1H15 Tertiary Industry +11% 50% of CQ GDP Chongqing 4% Population 29.9 million China s Western Development Strategy 50% 1H15 GDP +11.0% (national avg.: +7.0%) 1H15 Retail Sales +11.8% Strong Presence of International Brands 46% 1H15 Disposable Income per Capita RMB14, % Primary Secondary Tertiary 45

46 Outlet Sector Taking Off No. of Outlets in China 127 Located in Cities Outskirts Offering Discounts on Brands 76 Urbanization, Up & Coming Middle Class Support Growth Right Place for Personal Consumption Retailers Destocking Channel Source: Retail Property Insights Vol. 21, No.1, 2014 by ICSC 1Q According to ICSC s report, definition for outlets in Pan-European Standard: A consistently designed, planned & managed scheme with separate store units, where manufacturers & retailers sell merchandise at discounted prices that may be surplus stock, prior-season or slow selling. US: Manufacturers & retailers outlet stores selling brandname goods at a discount. 46

47 Region City No. of projects on sale in 1H15 Contracted Sales (%) GFA Sold (%) Eastern China Shanghai 5 21% 10% Suzhou 5 22% 20% Wuxi 4 9% 16% Changzhou 3 4% 9% Ningbo 3 3% 3% Hangzhou 7 19% 11% Eastern China Sub-Total: 27 78% 69% Western China Chengdu 6 4% 8% Chongqing 4 5% 7% Western China Sub-Total: 10 9% 15% Southern China Foshan & Guangzhou 7 5% 9% Others Beijing 1 2% 1% Tianjin, Dalian & Wuhan 5 6% 6% Southern & Others Sub-Total: 13 13% 16% 47

48 Projects City New Launch Attributable Proceeds (RMB M) Attributable GFA Sold (s.m) Average Price (RMB psm) Changzhou Feng Huang Hu Changzhou Jan 87 14,900 5,800 South Station Shanghai Apr ,200 34,900 Park Mansion Hangzhou May 97 5,200 18,500 Park Mansion Ningbo Jun 116 8,100 14,300 48

49 Projects City Attributable Proceeds (RMB M) Attributable GFA sold (s.m) Average Price (RMB psm) Ownership Suzhou Times City Suzhou 1,193 79,800 14,800 80% Zhoupu Shanghai ,900 32, % Ambassador Villa Suzhou ,900 34, % Palazzo Pitti (Lot C) Hangzhou ,700 26, % Royal Seal Hangzhou ,200 43, % South Station Shanghai ,200 34,900 27% Shanghai Songjiang Shanghai ,700 29, % Wuxi Times City Wuxi ,600 8, % Bi Xi Wuxi ,800 9, % Tangzhen Shanghai 304 6,000 50,600 50% Times Palace Changzhou ,300 7, % Qiantang Ming Yue Hangzhou ,600 24,900 50% Xiyuan Wuxi ,200 11, % Moon Lake Site B Wuhan ,400 10, % 49

50 Region City GFA million (s.m) % Total Eastern China Shanghai 0.7 7% Suzhou % Wuxi % Changzhou 0.7 7% Ningbo 0.2 1% Hangzhou % Eastern China Sub-Total: % Western China Chengdu % Chongqing % Western China Sub-Total: % Southern China Foshan & Guangzhou 0.4 4% Others Tianjin 0.1 1% Changsha 0.8 9% Beijing, Dalian & Wuhan 0.4 4% Southern & Others Sub-Total: % Total: % 50

51 Projects Attributable GFA (s.m) Key completion in 1H15 Suzhou Times City 142,900 Wuxi Times Ctiy 94,000 Wuhan Moon Lake Site B 68,700 Chengdu Le Palais 56,800 Ningbo Petrus Bay 39,000 Projected key completion in 2H15 Hangzhou Palazzo Pitti 152,400 Hangzhou Junting 131,400 Chongqing The Throne 130,000 Hangzhou Shi Ji Hua Fu 126,100 Suzhou Bellagio 116,600 Suzhou Times City 100,300 51

52 Projects City Ownership Shanghai Pudong Huangpujiang Shanghai 100% 52

53 IP Momentum Continues as Thank You Macro Environment Causes Concern 53

54 End of Presentation The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK] Disclaimer 1) 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. 2) The full-year statutory financial information of preceding financial years quoted in this presentation are derived from statutory annual financial statements for that relevant financial years, each of which had been delivered to Registrar of Companies in accordance with the prevailing Companies Ordinance and were reported on by the auditors with relevant auditors reports without qualification or modification. 54