Slide 1: Hysan Development 2017 Annual Results Press Conference
Hysan Development 2017 Annual Results Press Conference 希慎興業2017年全年業績 新聞發佈會 28. 2. 2018
Slide 2: Remarks by Ms. Irene Yun Lien Lee, Chairman
Remarks by Ms. Irene Yun Lien LEE Chairman 主席利蘊蓮女士 簡介 2017 年全年業績摘要 2
Slide 3: 2017 Highlights
2017 Highlights 2017年摘要 ● Turnover increased by 0.4%; against a slight decline in Recurring Underlying Profit of 0.8% ● Reported Profit increase reflecting changes in fair value of investment properties ● Retail portfolio occupancy at 97%; Office portfolio occupancy at 96% ● Completion of Lee Garden
Slide 4: Overview
Overview 概覽 ● Reasonable growth in 2017 global economy ● Hong Kong’s economy echoed this positive sentiment ● Local retail sales saw uptick in growth ● Office leasing continued to be stable ● 全球經濟在2017年錄得合理增長 ● 香港經濟受利好環境帶動 ● 香港零售業銷售額錄得輕微增長 ● 寫字樓租賃業務繼續保持平穩 4
Slide 5: Retail Changes
Retail Changes 零售業務的轉變 ● “Generational shift”: Millennials and Generation Z’ers are driving changes in the where, what, how and when products and services are delivered ● “Demographic change”: Mainland tourists and “New Hong Kong” residents, who came to settle in Hong Kong over the past 10 to 20 yea
Slide 6: Retail Changes (con't)
Retail Changes (con’t) 零售業務的轉變（續） ● Technology advancements: Relentless growth of e-commerce, dominance of mobile technology, prevalence of social media ● 科技日益昌明： 電子商務銷售額不斷上升、流動技術的主導優勢與日俱增，社交媒體更是無處不在 6
Slide 7: Retail Changes (con't)
Retail Changes (con’t) 零售業務的轉變（續） ● Brands and retailers, as well as online operators, are making moves to address these issues ● Hysan, as a landlord mall operator, needs to re-invent and re-imagine both strategically and operationally ● 品牌、零售商，以及網上營運商都採取行動應對這個趨勢 ● 希慎作為業主及商場營運商，需要重塑及重新構想策略及營運層面的種種
Slide 8: Retail Changes (con't)
Retail Changes (con’t) 零售業務的轉變（續） ● Give shoppers “extra special” touch to make the shopping experience socially pleasant and interesting ● Customers now offered personalised and unique items and services ● Hysan started journey into new retail and will continuously adapt our offerings ● 提供「額外的特殊」體驗
Slide 9: Retail Changes (con't)
Retail Changes (con’t) 零售業務的轉變（續） Early workout at gym Heading into work Hysan Place for a quick A quick coffee to perk up Browsing in book store 在健身室作晨早運動 上班工作 lunch 呷一杯咖啡抖擻精神 before heading to a 在希慎廣場午膳 dinner party 9 晚上聚餐前到書店逛逛
Slide 10: Office Changes
Office Changes 寫字樓業務的轉變 ● “Generational changes”: Incoming workforce want more fluid and mobile work style plus work in social setting Co-working space is growing and Hysan is increasing its office portfolio’s co-working space exposure to over 5% ● Multinationals opting to relocate to non-Centra
Slide 11: Hysan's Progress in 2017
Hysan’s Progress in 2017 希慎2017年的業務進展 ● Lee Garden Three completed in December 2017 First office tenant moved in Other multinationals from a diverse business background moving in Spaces, community-based co-working brand, establishing flagship here Retail podium welcomes food and beverage out
Slide 12: Hysan's Progress in 2017 (con't)
Hysan’s Progress in 2017 (con’t) 希慎2017年的業務進展（續） ● Marketing’s tenant collaboration received media attention, extensive footfall and healthy spending figures Revamped Louis Vuitton shop eslite summer programme Colourful I.T. showcase ● Loyalty clubs saw significant percentage growth of members
Slide 13: Hysan's Progress in 2017 (con't)
Hysan’s Progress in 2017 (con’t) 希慎2017年的業務進展（續） ● Office Continue to enhance an inclusive office community that fits the needs and demands of modern-day users Diverse office portfolio which includes sales, banking, finance and insurance, technology, health and wellness, as well as high-end bran
Slide 14: Looking Ahead
Looking Ahead 展望未來 ● Continue to support brands that offer classic luxury ● But also strengthen our commitment to promote lifestyle through food and beverage, as well as health and wellness, in an environment with a strong sense of community ● This will define the new retail where emerging consumers
Slide 15: Looking Ahead (con't)
Looking Ahead (con’t) 展望未來（續） ● Bring new initiatives to market with greater speed ● More digitalised and data-driven, and technology adopted at consumer level ● Maintain frequent dialogues with online retail operators and seek opportunities for partnerships ● Innovate and curate relevant content fo
Slide 16: Looking Ahead (con't)
Looking Ahead (con’t) 展望未來（續） ● Trend of global economic expansion is likely to continue in 2018; Hong Kong economy also expected to continue to grow ● Lee Garden Three’s completion confirms our commitment to expand our lifestyle theme and curate the contents of the Lee Gardens community ● 全球經濟的擴張趨勢
Slide 17: Presentation by Mr. Roger Hao, Chief Financial Officer
Presentation by Mr. Roger HAO Chief Financial Officer 首席財務總監賀樹人先生 簡介 2017 年全年業績 17
Slide 18: 2017 Annual Results Highlights
2017 Annual Results Highlights 2017年全年業績摘要 2017 2016 HK#039;M HK#039;M % 百萬港元 百萬港元 百分比 Turnover 營業額 3,548 3,535 0.4% Recurring Underlying Profit 經常性基本溢利 2,349 2,369 -0.8% One-off early surrender compensation income (net of effect of taxation and non-controlling interests’ shares) 142 - n/m 因提前解除租約之一次性賠償收入
Slide 19: 2017 Performance: By Portfolio
2017 Performance: By Portfolio 2017年表現：按業務劃分 Turnover (HK$’M) 營業額（百萬港元） 3,535 3,548 HK$274M (8%) HK$264M (8%) -3.6% HK$1,292M (36%) HK$1,359M (38%) +5.2% HK$1,969M (56%) HK$1,925M (54%) -2.2% 2016 2017 Retail 商舖 Office 寫字樓 Residential 住宅 19
Slide 20: Strong Financial Position
Strong Financial Position 穩健財政狀況 Low Gearing 低負債率 ● Total Gross Debt: HK$6,176 million ● 債務總額： 61億7千6百萬港元 (31 Dec 2016: HK$6,305 million) （2016 年 12 月 31 日： 63億5百萬港元） ● Net Debt to Equity: 5.0% (31 Dec 2016: 5.4%) ● 淨債務與股東權益比率：5.0% Stable Debt Profile （2016 年 12 月 31 日：5.4%） ● Fixed Rate Debt: 74.9%
Slide 21: Presentation by Mr. Ricky Lui, Chief Operating Officer
Presentation by Mr. Ricky LUI Chief Operating Officer 首席營運總監呂幹威先生 簡介 2017 年全年業績 21
Slide 22: 2017 Performance: Retail Portfolio
2017 Performance: Retail Portfolio 2017年表現：商舖業務 Market overview: Hong Kong Retail Sales ● 2017 full year: overall increase of 2.2% when compared to 2016 ● Retail sales improvement reflecting an improvement in inbound tourism and resilience of local consumption demand 市場概覽：本港零售市況 ● 2017 年全年：較去年整體上升2.
Slide 23: 2017 Performance: Retail Portfolio
2017 Performance: Retail Portfolio 2017年表現：商舖業務 ● Retail portfolio turnover decreased by 2.2% to HK$1,925 million Retail Portfolio Turnover (2016: HK$1,969 million) 商舖業務收入 ● Occupancy: 97% as at 31 Dec 2017 (31 Dec 2016: 99%) ● The portfolio going through a process of tenant mix adjustment: HK$’M 百萬
Slide 24: 2017 Performance: Retail Portfolio (con't)
2017 Performance: Retail Portfolio (con’t) 2017年表現：商舖業務（續） ● Total foot traffic decreased by around 5%, due to some major renovation and fit out work for new tenants Improvement seen towards the end of the year ● The estimated tenant sales for 2017 saw single-digit percentage increase, when compar
Slide 25: 2017 Performance: Retail Portfolio (con't)
2017 Performance: Retail Portfolio (con’t) 2017年表現：商舖業務（續） ● Newly joined tenants included Brunello Cucinelli, Zeiss Vision Center by Puyi Optical, Cha Ling, i.t blue block, BRICK LANE, The PHO and IPPUDO ● In early 2018, we welcome 10 Shanghai and Sushi Ta-ke ● 新加入的租戶包括Brunello Cucinelli、Zeiss Visi
Slide 26: 2017 Performance: Retail Portfolio (con't)
2017 Performance: Retail Portfolio (con’t) 2017年表現：商舖業務（續） ● Show-stopping events at Hysan’s portfolio ● Hong Kong’s most international sporting event Rugby Seven’s Fan Walk attracted overseas fans and local visitors Fan Walk’s dining and shopping promotions brought customers and sales to Hysan’s
Slide 27: 2017 Performance: Office Portfolio
2017 Performance: Office Portfolio 2017年表現：寫字樓業務 ● Office portfolio turnover increased by 5.2% to HK$1,359 Office Portfolio Turnover million (2016: HK$1,292 million) 寫字樓業務收入 HK$’M ● Occupancy: 96% as at 31 Dec 2017 百萬港元 1,600 (31 Dec 2016: 96%) 1,400 +5.2% ● Positive rental reversion in renewals, re
Slide 28: 2017 Performance: Office Portfolio (con't)
2017 Performance: Office Portfolio (con’t) 2017年表現：寫字樓業務（續） ● Hysan’s office space accounts for more than 50% of its overall portfolio’s gross floor area ● Contributed 38% of its turnover ● 希慎寫字樓業務組合佔集團業務總樓面面積超過50% ● 佔營業額的38% 28
Slide 29: 2017 Performance: Office Portfolio (con't)
2017 Performance: Office Portfolio (con’t) 2017年表現：寫字樓業務（續） ● Causeway Bay is one of the most sought-after areas for multinational and local corporations ● Lee Garden Three pre-leasing slowed down somewhat in second half of 2017, but close to 55% of its office space committed for rental ● 對跨國企業及本地公司
Slide 30: 2017 Performance: Office Portfolio (con't)
2017 Performance: Office Portfolio (con’t) 2017年表現：寫字樓業務（續） ● Balanced tenant mix showing the portfolio’s diversity: ● 均衡租戶組合反映寫字樓業務組合的多元化： Professional and Consulting 專業及顧問服務業 Banking and Finance 金融業 Insurance 保險業 Semi-Retail 綜合服務業 The four above categories representing around 合
Slide 31: 2017 Performance: Residential Portfolio
2017 Performance: Residential Portfolio 2017年表現：住宅業務 ● Residential portfolio turnover decreased by 3.6% to HK$264 million Residential Portfolio Turnover (2016: HK$274 million) 住宅業務收入 ● Positive rental reversion on renewals, reviews and new lettings HK$’M 百萬港元 ● Occupancy: 75% as at 31 Dec 2017 350 (
Slide 32: Lee Garden Three Project
Lee Garden Three Project 利園三期項目 ● Completed in December 2017 ● Promotes environmental friendliness and work-life balance ● Roof Top Garden and a Sky Garden with a 100 metre long running track ● 利園三期的建築工程於2017年12月完成 ● 推廣環保及作息均衡 ● 設有天台花園及一個擁有100米跑道的空中花園 32
Slide 33: Tai Po Lo Fai Road Project
Tai Po Lo Fai Road Project 大埔露輝路項目 ● Design development in good progress, statutory submissions ongoing ● Site formation and foundation works will start in Q2 2018 ● 設計工作進展良好，各項法定申請正在進行 ● 工地平整及地基工程將於2018年第二季展開 33
Slide 34: Thank you
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