Far East Consortium International Limited · HKEX:35
Far East Consortium International — H1 FY2022 Earnings Presentation
43 slides from Far East Consortium International's earnings presentation, November 2021
Slide 1: 2021/22 Interim Results
(Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號︰035 2021/22 Interim Results November 2021 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Far East Consortium International Limited (the “Company”) solely for information purposes. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to purchase or subscrib
Slide 3: Table of Contents
Table of Contents 1. FY2022 Interim Results Summary 2. Review of Operations 3. Prospects 4. Appendices 3
Slide 4: 1. FY2022 Interim Results Summary
1. FY2022 Interim Results Summary Concept of Queen’s Wharf Brisbane 4
Slide 5: Key Themes of 1H FY2022
Key Themes of 1H FY2022 Strong recovery of core businesses • Property development: Presales and unbooked contracted sales remained robust at HK$14.1 bn, with healthy settlements in 1H FY2022 • Hotel: Adjusted business model to target quarantine business, with strong revenue growth of 81.2% in 1H FY2
Slide 6: Active Monetisation Activity
Active Monetisation Activitiy 1 3 Dorsett City London 21 Anderson Road United Kingdom Singapore 1 2 Aggregate Consideration: Aggregate Consideration: GBP115 mn SGD213 mn 2 4 Affordable housing units Car Parks and Retail 3 United Kingdom Australia 4 Aggregate Consideration: Aggregate Consideration: G
Slide 7: Acquisitions and Land Replenishment
Acquisitions and Land Replenishment 1 4 Capital & Regional PLC Kai Tak Residential Hong Kong United Kingdom • Signed SPA in November • Signed exclusivity 2021 agreement with Capital & 5 • 50/50 JV with New World Regional PLC (“C&R”) 1 Development • Agreement covers the co- • Approximately 510,000 sq
Slide 8: Strong Profit Growth Despite Uncertain Times
Strong Profit Growth Despite Uncertain Times HK$ mn 1H FY2022 1H FY2021 % change Revenue 3,120 3,111 +0.3% Gross profit 987 988 -0.1% Profit before tax 1,385 831 +66.8% Net profit attributable to shareholders 1,071 350 +206.3% Adjusted cash profit attributable to shareholders(1) 836 292 +186.3% EPS
Slide 9: Overall GP Margins Indicate Gradual Return to Normality
Overall GP Margins Indicate Gradual Return to Normality 1H FY2022 1H FY2021 Gross profit Gross profit Gross profit Gross profit Revenue (before Revenue (before (after depreciation) (after depreciation) depreciation) depreciation) HK$ mn HK$ mn Margin HK$ mn Margin HK$ mn HK$ mn Margin HK$ mn Margin
Slide 10: Objective of Long Term Dividend and NAV/Share Growth Is Intact
Objective of Long Term Dividend and NAV/Share Growth Is Intact • Resilient NAV despite a current challenging business environment • Continuing to deliver a sustainable and attractive dividend is a priority for the Group 10-Year NAV CAGR: 8.1% 10-Year DPS CAGR: 10.5% 13.29 13.09 13.01 22.0 22.0 12.41
Slide 11: Strong Liquidity and Balance Sheet
Strong Liquidity and Balance Sheet • Strong liquidity position and reduced net gearing and leverage ratios • Monetisations strengthen liquidity and balance sheet position (21 Anderson Road) Post-disposal of Post-acquisition of Proforma adjusted HK$ mn As at 30.9.2021 21 Anderson Road Kai Tak Residen
Slide 12: Ample Access to Liquidity
Ample Access to Liquidity • Available existing liquidity of HK$19.5 bn (cash position and undrawn facilities) far exceeds the capex of HK$2.6 bn • Presales and unbooked contracted sales of HK$14.1 bn provides visibility on future cash inflow streams • Ability to raise further liquidity by borrowing
Slide 13: 2. Review of Operations: Property Development
2. Review of Operations Property Development Concept of Victoria Riverside, Manchester 13
Slide 14: Completion in FY2022 – West Side Place, Melbourne
Completion in FY2022 – West Side Place (Towers 1 and 2), Melbourne Embodying a New Height of Cosmopolitan Living Comprising of four towers across the site, this two-stage, major mixed-use development is located next to our existing Upper West Side development. It is proudly positioned in Melbourne’s
Slide 15: Completion in FY2022 – MeadowSide, Manchester
Completion in FY2022 – MeadowSide (Plot 5), Manchester Expected Completion in 2H FY2022 – MeadowSide (Plots 2 and 3), Manchester An Attractive Mix of City Living, Urban Amenities and Parkland Peace in the City Centre A landmark project located in the heart of The Noma Quarter, north of Manchester’s
Slide 16: Upcoming Launch in 2H FY2022 – Mount Arcadia, Hong Kong
Upcoming Launch in 2H FY2022 – Mount Arcadia, Hong Kong A World-Class Project Surrounded by Lush Greenery Located in the mid-levels of Shatin, Hong Kong, a quiet area with development potential. Residents will enjoy the simplicity of living within a 30-minute drive to numerous key destinations, as w
Slide 17: Upcoming Launch – Queen's Wharf Residences (Tower 5)
Upcoming Launch in 2H FY2022 – Queen’s Wharf Residences (Tower 5) AA Luxury Integrated World-Class Resort Integrated in Queensland, Resort in Queensland, Australia Australia With support from the Brisbane government, Queen’s Wharf Residences is a once-in-a-generation renewal project across Australia
Slide 18: Significant Pipeline Addition – Kai Tak Residential
Significant Pipeline Addition – Kai Tak Residential Planned Kai Tak Residential Site Acquisition • 50/50 joint venture with New World Group • Agreement signed on 24 November 2021 Upfront cost HK$ mn Development site cost 7,948 Proposed junior loan assumption (3,000) Proposed senior loan assumption (
Slide 19: 2. Review of Operations: Hotel Operations & Management
2. Review of Operations Hotel Operations & Management The Ritz-Carlton, Perth 19
Slide 20: FEC Took Prompt Actions to Stay Ahead
FEC Took Prompt Actions to Stay Ahead • Reduced overheads • Explored more • Repositioned • Continued to leverage • Continued benefitting by trimming down monetisation towards targeting government from global workforce and opportunities to self-quarantine incentives and diversification as cutting fix
Slide 21: Hotel Operating Performance
Hotel Operating Performance Dorsett Group 1H FY2022 1H FY2021 YoY change Hong Kong Occupancy rate 74.5% 71.7% +2.8ppts Average room rate (HK$) 794 409 94.1% RevPAR (HK$) 592 294 101.4% Malaysia Occupancy rate 41.3% 32.4% +8.9ppts Average room rate (MYR) 171 154 11.0% RevPAR (MYR) 71 50 42.0% Mainlan
Slide 22: New Hotel Additions
New Hotel Additions Dao by Dorsett West London Dorsett Gold Coast Ritz-Carlton Melbourne • Adjacent to Dorsett • Adjacent to the Gold Coast • Occupies the top 18 floors of Shepherds Bush Convention and Exhibition West Side Place (Tower 1), Centre and Pacific Fair Melbourne • Overlooking the Shepherd
Slide 23: Kai Tak Development – Project Progressing Well
Kai Tak Development – Project Progressing Well The HK Government’s most significant infrastructure investment in recent decades • Total area: over 320 hectares • Kai Tak Outline Zoning Plan: A mix of community, housing, business, entertainment, tourism and infrastructural uses • Town Planning Board
Slide 24: 2. Review of Operations: Car Park Operations
2. Review of Operations Car Park Operations Care Park Control Room, Melbourne 24
Slide 25: Car Parks – Expected Recovery Ahead
Car Parks – Expected Recovery Ahead • Continued crystalising assets by selling some smaller car parks 30.9.2021 31.3.2021 • Car park business expected to gradually return to normalcy as COVID-19 No. of No. of No. of No. of situation improves Car Park Bays Car Park Bays • Took appropriate actions to
Slide 26: Value-Added Technology Reduces Costs and Enhances Value
Value-Added Technology Reduces Costs and Enhances Value Leading Technology Platform • Car park operator with in-house technology capabilities • Control centre in Melbourne oversees all operated car parks • Able to efficiently roll out technology to new and existing sites End-to-end Car Park Service
Slide 27: 2. Review of Operations: Gaming Operations
2. Review of Operations Gaming Operations Concept of Queen’s Wharf Brisbane 27 27
Slide 28: Gaming - Revenues Nearly at Pre-Pandemic Levels
Gaming - Revenues Nearly at Pre-Pandemic Levels Strong recovery of all 3 casinos • Casinos reopened since 30th May 2021 • Despite temporary closure, revenues rose 8.0% to HK$86 mn(1) vs 1H FY2021 • Continuing to keep costs low • Filed application on an online gaming license in Malta to enrich the ga
Slide 29: QWB: Expected Casino Opening in FY2023
QWB: Expected Casino Opening in FY2023; Harvesting Period Coming Soon • World-class integrated resort destination • FEC’s stake: 25% • Hotel/Retail/F&B/Casino • Executed AUD1.6 bn financings for Queen’s Wharf Brisbane • Attracted the retail giant, DFS, to the luxury shopping precinct, bringing more
Slide 30: Other Compelling Projects: Strategic Alliance with The Star
Other Compelling Projects: Strategic Alliance with The Star • Ongoing planning for landmark • Redevelopment project with The residential and hotel towers Star adjacent to The Star Sydney, to • In planning stage be operated by The Ritz-Carlton • Hotel/Residential • FEC’s stake: 33.3% • Hotel/Resident
Slide 31: 2. Review of Operations: BC Invest
2. Review of Operations BC Invest Concept of MeadowSide, Manchester 31
Slide 32: BC Invest – Expanding Steadily
BC Invest – Expanding Steadily Business overview • A fast-growing platform offering mortgage financing to non-resident home purchasers in Australia and the UK • FEC owns over 50% of BC Invest • Expanded into the UK market in early 2021 • Secured several new warehouses, including a Loans and advances
Slide 33: 3. Prospects
3. Prospects The Star Residences, Gold Coast 33
Slide 34: Short to Medium-Term Harvesting
Short to Medium-Term Harvesting Short and Medium-Term Outlook • Planning new launches and monetisation - Mount Arcadia in Hong Kong and Tower 5 of Queen’s Wharf Residences Property - Sale of affordable housing units at Consort Place in London and Victoria Riverside in Manchester Development • More p
Slide 35: Building on Key Priorities to Establish ESG Framework
Building on Key Priorities to Establish ESG Framework ESG Overview • Introduced formal sustainable finance framework, which received an aligned opinion from S&P Global Ratings • Introduced new sustainability strategy based on four pillars: • Managing environmental footprint • Employer of choice • Cu
Slide 36: Consistent Recognition for IR and ESG
Consistent Recognition for IR and ESG from Reputable Organisations 1H FY2022 2021 7th Investor Relations Awards Finance Asia’s Best Companies Poll 2021 • Best IR Company • Asia’s Overall Best Managed Company • Best IR by Chairman / CEO – Mr. David Chiu • Best Managed Listed Company in Hong Kong • Be
Slide 37: Thank You
Thank You Questions & Answers For more information, please contact: Investor Relations Department: ir@fecil.com.hk Or visit the Company’s website: www.fecil.com.hk FEC Official WeChat 37
Slide 38: 4. Appendices
4. Appendices The Towers at Elizabeth Quay, Perth 38
Slide 39: Seeding New Growth
Seeding New Growth Synergistic businesses supports core businesses’ Significant value creation opportunities in these growth businesses Highly Synergistic Business FEC’s stake: 25% FEC’s stake: 25% FEC’s stake: > 50% FEC’s stake: 100% FEC’s stake: 100% Integrated resort targeting International prope
Slide 40: Strong Pipeline for Sustainable Growth
Strong Pipeline for Sustainable Growth As at 30.09.2021 Location Cumulative presales Expected attr. SFA (1) Expected attr. GDV(2) Expected Cumulative presale Projects under presale (HK$'M) (sq.ft.) (HK$'M) Completion as % of GDV Notes: 1 West Side Place (Towers 1 and 2) Melbourne 588 482,000 2,288 F
Slide 41: Significant Hidden Value in FEC's Hotel Portfolio
Significant Hidden Value in FEC’s Hotel Portfolio Capital Value @ Revaluation Surplus City / Country Description Rooms 31.3.2021 (HK$ mn) (HK$ mn) Hotels in operation Hong Kong 1 Dorsett Wanchai Hong Kong Amid Wanchai and Causeway Bay 454 3,980 3,741 2 Cosmo Hotel Hong Kong In Hong Kong's prime busi
Slide 42: Details of Major Investment Properties
Details of Major Investment Properties Total GFA Total GFA Current Investment Properties Pipeline Investment Properties (sq. ft.) (sq. ft.) FEC Building, Central, Hong Kong 3,000 Queen's Wharf Brisbane(1), Brisbane 346,900 FEC Building, Nathan Road, Hong Kong 38,700 Kai Tak, Hong Kong 178,900 Far Ea
Slide 43: Impact of Foreign Exchange Rates
Impact of Foreign Exchange Rates • Movement in foreign currencies had an impact on balance sheet position • Assuming exchange rates remained constant, net asset value(1) would have been HK$569 million higher as at 30 September 2021 Rates as at 30.9.2021 31.3.2021 Change Average rates for 1H FY2022 1
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