Far East Consortium International Limited · HKEX:35
Far East Consortium International — 1H FY2019 Earnings Presentation
43 slides from Far East Consortium International's earnings presentation, November 2018
Slide 1: 2018/19 Interim Results
2018/19 Interim Results November 2018
Slide 2: Disclaimer
Disclaimer This document has been prepared by Far East Consortium International Limited (the “Company”) solely for information purposes. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclosed in this document. This document does not constitute
Slide 3: Table of Contents
Table of Contents 1. FY2019 Interim Results Summary 2. Review of Operations 3. Prospects 3
Slide 4: 1. FY2019 Interim Results Summary
1. FY2019 Interim Results Summary Hornsey Town Hall, London 4
Slide 5: 1H FY2019: Key Achievements
1H FY2019: Key Achievements FEC’s Strategic Positioning To Become A Pre-eminent International Real Estate Specialist With Strong Hospitality DNA Targeting the “Asian Wallet” Yielding Encouraging Results Integration of TWC Recurring cashflow progressing business smoothly following demonstrated acquis
Slide 6: Strong Recurring Revenue Growth
Strong Recurring Revenue Growth Supported by recent acquisitions / investments and organic growth HK$mns 1H 1H YoY FY2019 FY2018 change Recurring revenue Hotel operations 879 695 - Dorsett Group 816 695 - TWC Hotel Group 63 - Car park operations 358 333 Gaming operations 149 - - The Star 35 - - TWC
Slide 7: Core Cash Profit Analysis
Core Cash Profit Analysis Core cash profit affected by lower property completion which was offset by strength of recurring cashflow businesses HK$mn 1H FY2019 1H FY2018 % change Net profit attributable to shareholders 616 1,033 Adjustments: Gain on investment property revaluation (111) (126) Change
Slide 8: A Busy First Half
A Busy First Half Projects completed New Launches Land Replenishment • Royal Riverside, Guangzhou • The Garrison, Hong Kong • Holland Road, Singapore (Towers 1 to 4)# • West Side Place (Tower 3), • Cuscaden Road, Singapore • Aspen Crest, Hong Kong# Melbourne • 21 Anderson Road, Singapore • Hornsey T
Slide 9: Presales Hit A Record High
Presales Hit A Record High HK$4.3bn of presales recorded during the period HK$mn Cumulative attributable contracted presales as at 31.3.2018 13,374 Adjustment to opening balance as a result of accounting rule change (292) During 1H FY2019: - Presales contracted during the period 4,316 - Recognized a
Slide 10: Gross Margins Stay Healthy
Gross Margins Stay Healthy 1HFY2019 1HFY2018 Gross profit Gross profit Gross profit Gross profit Revenue (before Revenue (before (after depreciation) (after depreciation) depreciation) depreciation) Margin Margin Margin Margin HK$ M HK$ M % HK$ M % HK$ M HK$ M % HK$ M % (1) Property development 1,46
Slide 11: Consistent Dividend Policy Supported by Long Term NAV per Share Growth
Consistent Dividend Policy Supported by Long Term NAV per Share Growth 14.00 NAV CAGR : 11.3% 25.0 DPS CAGR: 24.2% 22.0 (FY2009-FY2018) 12.41 12.21 (FY2012-FY2018) 12.00 10.79 20.0 18.5 9.79 16.0 16.0 10.00 9.12 9.02 15.0 8.45 15.0 13.0 8.00 6.70 5.84 6.00 6.00 4.73 10.0 6.0 4.00 5.0 4.0 2.00 0.00 0
Slide 12: Foreign Exchange Movement Analysis
Foreign Exchange Movement Analysis Average 1H 1H Rates as at 30-Sep-18 31-Mar-18 Change Change rates for FY2019 FY2018 HKD/AUD 5.64 5.99 -5.8% HKD/AUD 5.82 6.02 -3.3% HKD/RMB 1.14 1.25 -8.8% HKD/RMB 1.20 1.16 3.4% HKD/MYR 1.89 2.03 -6.9% HKD/MYR 1.96 1.8 8.9% HKD/GBP 10.18 11.02 -7.6% HKD/GBP 10.60
Slide 13: Balance Sheet Suitably Geared Up
Balance Sheet Suitably Geared Up Capital deployed for: • New business investments (gaming / mortgage finance) • Land acquisition As at As at (1) Include an amount of approximately 30.9.2018 31.3.2018 HK$948mn (HK$1,194mn as at HK$ M HK$ M 31.3.2018) reflected as liabilities due within Bank loans, no
Slide 14: Substantial War Chest
Substantial War Chest • Existing War chest of Liquidity position 7,301 Undrawn banking facilities HK$15.9bn (cash - general corporate use position and 2,800 undrawn facilities) is more than enough to cover the committed Others Undrawn capex of HK$3.4bn 30 banking QWB 805 facilities - • Presale provi
Slide 15: BC Securities: Mortgage Finance Platform
BC Securities: Mortgage Finance Platform • Associated company sponsored by FEC Specialist in non- residents • FEC committed AUD75mn with mortgage balance supported by an international investment bank AUM @ 2018.9.30: • Synergistic to FEC’s property AUD374mn development business Low risk with asset b
Slide 16: Balanced and Diversified Portfolio
Balanced and Diversified Portfolio Business diversification allows FEC to take advantage of property cycles in different countries Total Assets by Geography(1) Total Assets by Business Segment(1) Singapore Car park operations 10% UK & facilities 7% management Mainland China Europe 3% 11% 2% Gaming M
Slide 17: Long-term Growth Track Record Intact
Long-term Growth Track Record Intact 6000 5,831 CAGR (FY2009-FY2018) : Total revenue: 14.4% Adjusted cash profit(1): 29.1% 5,110 5,005 5000 4,066 3,995 4000 3,732 3000 2,965 2,776 2,342 2000 1,733 1,761 1,654 1,643 1,157 1000 836 735 890 853 238 176 165 423 0 HK$ mn FY2009 FY2010 FY2011 FY2012 FY201
Slide 18: 2. Review of Operations: Property Development
2. Review of Operations Property Development MeadowSide, Manchester 18
Slide 19: Strong Pipeline for Sustainable Growth
Strong Pipeline for Sustainable Growth (1) Approximate saleable residential floor Cumulative attr. Expected attr. Expected attr. Cumulative areas and expected gross development Projects under presale presales SFA(1) GDV(1) Expected presale value may vary subject to finalization of @30.9.2018 Locatio
Slide 20: West Side Place, Melbourne
West Side Place, Melbourne 20
Slide 21: The Towers at Elizabeth Quay, Perth
The Towers at Elizabeth Quay, Perth 21
Slide 22: Artra, Singapore
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Slide 23: Hong Kong Projects at Various Stages of Development
Hong Kong Projects at Various Stages of Development Aspen Crest, Wong Tai Sin Astoria Crest, Sham Shui Po The Garrison, Tai Wai 23
Slide 24: Hong Kong Projects at Various Stages of Development (Con't)
Hong Kong Projects at Various Stages of Development (Con’t) Shatin Heights Marin Point, Sha Tau Kok Manor Parc, Tan Kwai Tsuen 24
Slide 25: MeadowSide, Manchester
MeadowSide, Manchester 25
Slide 26: 2. Review of Operations: Hotel Operations & Management
2. Review of Operations Hotel Operations & Management The Dorsett City overlooking London City 26
Slide 27: Strong Operating Performance
Strong Operating Performance Dorsett Group 1HFY2019 1HFY2018 YoY change Hong Kong Occupancy rate 94.0% 91.2% +2.8ppts Average room rate (HK$) 730 655 +11.5% RevPAR (HK$) 686 597 +14.9% Malaysia Occupancy rate 76.6% 72.4% +4.2ppts Average room rate (MYR) 188 194 -3.1% RevPAR (MYR) 144 140 +2.9% Mainl
Slide 28: A Reminder: Significant Hidden Value in Hotel Portfolio
A Reminder: Significant Hidden Value in Hotel Portfolio Capital Value Book Value Revaluation City Description Rooms @ 31.3.2018 @ 31.3.2018 Surplus Notes (HK$ M) (HK$ M) (HK$ M) (1) Acquisition completed Hotels in operation on 30.4.2018 Hong Kong 1 Dorsett Wanchai Hong Kong Near Wanchai and Causeway
Slide 29: Clear Hotel Pipeline
Clear Hotel Pipeline No. of rooms Hotels in Operation 10,831 • Dorsett Group total revenue of 10,000 10,436 HK$816mn, +17.4% yoy 9,291 8,000 8,388 7,539 • Full period contribution of Dorsett City 8,314 6,949 7,539 6,743 London 6,000 6,043 6,043 5,429 • Acquisition of 5 TWC hotels completed on 4,000
Slide 30: 2. Review of Operations: Car park operations
2. Review of Operations Car park operations 30
Slide 31: Organic Growth and Regional Diversification
Organic Growth and Regional Diversification - No. of Car Parks: +20; Bays: +3,872 bays 30-Sep-18 31-Mar-18 No. of No. of - Revenue for 1HFY2019: HK$358mn, +7.4% YoY Car Park No. of Bays Car Park No. of Bays - Organic growth in Australia, UK and Hungary Australia with new management contracts Owned a
Slide 32: Growth Supported by Australian & Regional Expansion
Growth Supported by Australian & Regional Expansion Total Bays as at 2018.9.30 FY2014 – 1H FY2019 92,740 New Zealand, 8,244 4.5-year CAGR: 13% 88,868 UK, 1,870 10,649 Malaysia, 83,801 4,637 10,684 Australia, Hungary, 76,503 9,292 1,486 76,204 74,526 70,676 70,983 7,038 9,214 66,356 7,022 6,661 6,188
Slide 33: 2. Review of Operations: Gaming and Entertainment
2. Review of Operations Gaming and Entertainment Concept of Queen’s Wharf Brisbane 33
Slide 34: TWC: Synergies Expected Through Integration With FEC Hospitality Operations
TWC: Synergies Expected Through Integration With FEC Hospitality Operations TWC Casino Operations (5 months ended 30.9.2018) Revenue HK$114mn • Three best in class casinos under the brand American Chance Casinos - Slot Machine HK$89mn • Licenses: - Table Game HK$25mn - Basic licenses: 6 years from J
Slide 35: Queen's Wharf Brisbane: Construction Progressing
Queen’s Wharf Brisbane: Construction Progressing 35
Slide 36: The Star: Strong and Growing Dividend Contribution
The Star: Strong and Growing Dividend Contribution • An Australian listing company (Stock code: SGR.AX) owning and operating world-class integrated resorts with dominant position in Sydney, Gold Coast and Brisbane • FY2018 final dividend of A$0.13 per share declared during the period • Dividend payo
Slide 37: Strategic Benefits to FEC from the Strategic Alliance
Strategic Benefits to FEC from the Strategic Alliance ⚫ Strengthen already established relationship with The Star and CTF ⚫ Forge partnership for potential mixed-use property projects; first right to participate in future The Star development; in principle commitment to participate in other Nominate
Slide 38: 3. Prospects
3. Prospects Concept of The Star Gold Coast, Australia 38
Slide 39: A Stronger FEC
A Stronger FEC Property Hotel Operation & Car Park Operations Gaming and Development Management and Management Entertainment • A diverse portfolio of quality • One of the largest hotel • A leading parking • 25% interest in the Integrated operators in Asia residential projects in Australia, managemen
Slide 40: 2H FY2019 Outlook
2H FY2019 Outlook - New launches: Perth Hub, Manor Parc, MeadowSide Plot 5 Residential development - To be completed: Aspen Crest (remaining units), The Towers at Elizabeth Quay (first tower), Royal Riverside (remaining units), Astoria Crest, Marin Point, Manor Parc - Strong momentum remains Hotel -
Slide 41: Company Outlook: Exciting Prospects
Company Outlook: Exciting Prospects Strategies to generate new growth: • Deepen regional diversification • Extend “Chinese Wallet” Strategy to “Asian • Focus on cities with strong population or tourism Wallet” Strategy, to capitalize on the growing growth potential affluence of the middle class in A
Slide 42: Company Awards Demonstrate Recognitions
Company Awards Demonstrate Recognitions Silver Award (Traditional Annual Report) 2018 International ARC Bronze Award (Interior Design) Awards Honors Award (Traditional Annual Report) The Asset Corporate Platinum Award Award 2018 Gold Award: Annual Reports - Cover Design Category Silver Award: Websit
Slide 43: Thank You
Thank You Questions & Answers FEC Official WeChat 43
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