Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — FY2024 Earnings Presentation
41 slides from Ctf Services's earnings presentation, Sep 25, 2024
Slide 1: FY2024 Annual Results Presentation
NWS Holdings Limited (659.HK) FY2024 Annual Results Presentation 25 September 2024
Slide 2: NWS at a Glance
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Slide 3: Key Investment Thesis
Key Investment Thesis Counter-cyclical & solid businesses with strong cash flow generation supporting value accretive acquisitions & sustainable dividend • Broad business footprint across diversified industries bring Resilient Earnings, Cash Flow Generation Capability and Visibility amid macroeconom
Slide 4: Corporate Structure
Corporate Structure Cohesive synergies among business units of the prominent shareholder Since mid-November 2023, NWS is majority owned by Chow Tai Fook Enterprises Limited and in turn by the Cheng Family, one of the most prominent families in Hong Kong. The Cheng Family’s strategic investments acro
Slide 5: FY24 AOP Soared by 21% YoY
FY24 AOP Soared by 21% YoY A solid set of results despite the uneven post-pandemic recovery in the Mainland & Hong Kong % of Roads Insurance Logistics Construction Facilities AOP by Location(2)(3) Group’s Management AOP1 38% 23% 17% 17% 5% AOP by Segment HK$M The Mainland FY23 3% 54% 6% 5%4 (incl. W
Slide 6: Business Strategy & Outlook
Business Strategy & Outlook Uphold vigilant business strategy in investment decisions & business operations Roads Insurance Logistics Construction Facilities Management • Actively seeking ways to • Deepen collaboration with the • Proactively seek out high- • Shifted focus towards • HKCEC – introduce
Slide 7: Financial Update
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Slide 8: FY24 Financial Results Highlights
FY24 Financial Results Highlights Resilient growth & strong credit position As at 30 June 2024: Overall AOP Profit Attributable to Shareholders HK$4,167M HK$2,084M Total available liquidity: c. HK$26.8Bn ✓Cash on hand: c. HK$14.8Bn +21% YoY +44% YoY ✓Committed undrawn banking facilities: c. HK$12.0B
Slide 9: Strategic Financial Management
Strategic Financial Management Healthy debt profile escorts sustainable business development RMB Debt to Total Debt RMB Liabilities to RMB Assets Fixed Rate Debt to Total Debt 65% 60% 39% 54% 43% 37% FY2 3 FY2 4 FY2 3 FY2 4 FY2 3 FY2 4 RMB debt Fixed rate debt Further optimize debt mix & cost of fin
Slide 10: Diversified Funding Source
Diversified Funding Source Proactive financial management supports robust credit ratings • Full redemption of 2019 Perpetual Capital Securities with outstanding principal amount of US$1,019.1M at par in January 2024 Credit Rating • Issuance of 2nd tranche of Panda Bonds in November 2023 (principal a
Slide 11: FY24 Adjusted EBITDA Analysis
FY24 Adjusted EBITDA Analysis Adjusted EBITDA includes dividend from JVs/assocs is the cash proxy HK$’M , 1,538 7,241 , , 381 119 1,759 Impairment (219) Dividends 5, Net loss on losses received from FV of related to Others associated investment associated companies , 3,663 properties companies, and
Slide 12: Resilient Financial Performance
Resilient Financial Performance Continued portfolio optimization brings robust earnings quality Recurring & Stable AOP amid Market Volatilities Continual Portfolio Optimization Drives Portfolio Growth HK$’M Attributable operating profit HK$’M Perp Total equity excl. Perp Total assets Profit for the
Slide 13: Solid Financial Position
Solid Financial Position Prudent financial management safeguards financial health & balance sheet strength Prudent Liabilities Management with Well-Controlled Leverage Healthy Net Debt/Adjusted EBITDA Net Debt Net Gearing Ratio HK$’M (x) 20,000 40% 31% 35% 35% 4.0 3.7x 16,000 25% 30% 25% 3.0 12,000
Slide 14: Improving Return on Equity
Improving Return on Equity Continued portfolio optimization brings robust earnings quality Return on Equity Consistent Total Return Outperformance over HSI 3-month 1-year YTD total return total return total return NWS (659.HK) 6.1% 10.0% 29.2% 8% 6% Hang Seng Index 3.4% 5.7% 11.6% 6% 4% 4% Outperfor
Slide 15: Sustainable & Progressive Dividend Policy
Sustainable & Progressive Dividend Policy Creating long-term value to shareholders Increase final ordinary dividend in FY24 Demonstrates our confidence in the Company’s future growth prospects and our ongoing effort to Attractive cash dividend return capital to our shareholders Continuous return to
Slide 16: Business Operation Update
Section 3 Business Operation Update
Slide 17: Roads: Toll Road Portfolio
Roads Toll Road’s Portfolio (as at June ) 14 projects Tianjin 1 Expressway 7 provinces Length:60.7km Concession Expiry: 2040 c. 916 km Shanxi 1 Expressway Hubei Length:36.0km Zhejiang 2 Expressways Concession Expiry: 2025 1 Expressway Length: 137.3km Concession Expiry: 2040-2050 Length: 103.4km Conc
Slide 18: Roads
Roads Projects located in seven strategic locations in the Mainland with stable development Segment AOP1 Portfolio of 14 Toll • The segment performed robustly in 1H-FY24. This pace moderated in 2H-FY24, largely Roads in the Mainland due to the impact of inclement weather in the Mainland on travel de
Slide 19: Insurance: CTF Life New Brand
Insurance CTF Life – New Brand, Diverse Experience & Value Beyond Insurance Provide a unique competitive edge through synergy: leveraging the diverse Rebranded as “CTF Life” in conglomerate collaboration of July 2024 with the prestigious the CTF Group to support our “CTF” brand, which boosts custome
Slide 20: Insurance: Solid Operating Metrics
Insurance CTF Life - delivered solid operating metrics in FY24 Segment AOP 1 HK$4,548.9M c. 60% YoY HK$M (+77%3 YoY) Overall APE ↑ 54% APE from Mainland Market HK$21.2Bn Visitors Ranking4: 10th (+10% from 30 HK$1,229.5M June 2023) 965 (+37% YoY) 625 Embedded VONB Value (HKIO 1,900+ FY23 FY24 c. HK$8
Slide 21: Insurance: AOP Achievement & Growth Outlook
Insurance CTF Life - noticeable AOP achievement & sanguine growth outlook • CSM +15% yoy to HK$8.2Bn contributed by the strong new business, which will fuel the profits to be booked over the contract period in the future • Overall APE +77% yoy to HK$4,549M driven by attractive product offerings, the
Slide 22: Insurance: Investment Portfolio
Insurance CTF Life - investment portfolio (as of 30 June 2024) Investment Portfolio AUM* (HK$'M) Asset Types CAGR=18% 77,721 Bonds (Including 68,264 Bond Funds) 55,670 75% Listed Equities (Including Equity Other Funds) Assets & Alternatives 10% 30 Jun 2022 30 Jun 2023 30 Jun 2024 Cash 6% * Exclude I
Slide 23: Logistics
Logistics Diversified logistics investments spread out Greater China 7 logistics properties in Chengdu, Wuhan & CUIRC (30% interest) Suzhou • JV with China State Railway Urumqi Jilin • Total gross leasable area: Inner Group, PSA, CIMC & Deutsche Mongolia 6.5M sqft Liaoning Bahn Xinjiang Beijing • 13
Slide 24: Logistics Portfolio and Occupancy
Logistics Logistics portfolio with desirable geographical positioning & high occupancy rate Segment AOP Logistics Asset & Management (“LA&M”) - total gross leasable area c.12.4M sqft YoY • ATL - total gross leasable area c.5.9M sqft HK$M ↑ 6% Logistics segment’s AOP% Occupancy rate Average rental gr
Slide 25: Logistics: Resiliency & Growth
Logistics Maintain resiliency & growth to bring long-term benefits for the Group ➢ ATL will persist in surpassing the competition and maintain its preeminent position in the market, leveraging its superior warehouse facilities and unparalleled location ➢ The Group’s Mainland logistics operations mai
Slide 26: Construction
Construction Prime construction companies with a proven record in HK Segment AOP • Excl. Wai Kee, NWS Construction Group’s AOP maintains flat NWS Construction Group Wai Kee • The Group has reclassified its 11.5% interest in Wai Kee from an associated company to financial assets at fair value through
Slide 27: Construction: Land & Housing Supply
Construction HK Govt’s determination to increase land & housing supply strengthens segment development New Contract Awarded1 (HK$’Bn) Contracts On Hand (HK$’Bn) Construction Contracts Backlog (HK$’Bn) 70 65 60 55 321% 13% 50 22% 63.9 45 21.9 56.5 40 35 30.9 30 25.4 25 20 5.2 15 10 5 0 30 Jun 2023 30
Slide 28: Facilities Management
Facilities Management Turned around to AOP post COVID-19 with remarkable growth Segment AOP HKCEC – sustained its rebound trajectory in FY24 • Return of large-scale international and regional exhibitions coupled with the addition of new events YoY HK$M ↑ 469% • Number of events +8% YoY to 823 and to
Slide 29: Facilities Management: Solid Recovery
Facilities Management Solid recovery & demand drive continual profitability improvement GHK Hospital – enhanced reputation leads to continual narrowing of its AOL • EBITDA +93% yoy, EBITDA margin further improved • Inpatients, outpatients & day cases +20%, +12% & +10% yoy, respectively • Regular uti
Slide 30: Environment, Social & Governance (ESG)
Section 4 Environment, Social & Governance (ESG)
Slide 31: ESG Strategy
ESG Strategy Breakthrough 2050 Targets FY2024 Status Act with Integrity • Ensuring fairness and a high level of ethical standards in our work. • Supporting the growth of our business and helps nurture our long-term relationships. Business Ethics and Anti- Corruption • 0 convicted cases on anti- corr
Slide 32: Our Ratings Performance
OUR RATINGS PERFORMANCE • Overall score increased from 82.56 (2023-2024) to 83.65 • Best overall score in the category of conglomerate
Slide 33: Act with Integrity
Act with Integrity Enhanced ESG governance LEADERSHIP OPERATION Establishment of ESG Committee Integrating ESG into our ERM process Corporate Governance Committee ESG Chairman Committee Huen WONG Sustainability Committee Members Risk Risk Identification Assessment Comprehensive Strategic oversight a
Slide 34: Advance with Agility
Advance with Agility Net zero 2050 ambitions 2023 2024 2025 2030 2035 2050 • Became a signatory • Completed the • Set 1.5°C targets and • Review NWS • Report on the • Achieve NWS’s Net of BEC Net-zero 1.5°C pathway develop reduction Group’s net zero short-term targets Zero commitment Carbon Charter
Slide 35: Evolve Sustainability
Evolve Sustainability CONSTRUCTION FACILITIES MANAGEMENT Advancement On Construction Technology Application On-going Efforts On Enhancing Efficiency Recognitions Recognitions • The Operations & Services Award 2023 by UFI • Awarded ISO 20121 Event Sustainability Management System certification and th
Slide 36: Evolve Sustainability: Roads and Insurance
Evolve Sustainability ROADS INSURANCE First Smart Service Area in Mainland China to Achieve Innovative Protection for a Healthier Future LEED Platinum Certificate Recognition CTF Life has introduced the “FamCare 9 “ with rare and The West Lake Southern and Northern Service Building renovation innova
Slide 37: Evolve Sustainability: Logistics
Evolve Sustainability LOGISTICS Acquisition premium for quality warehouses We are committed to acquiring premium quality assets that meet our rigorous standards for sustainability and operational excellence. Our strategic investments in logistics properties are exemplified by the recent acquisition
Slide 38: Grow as One
Grow as One We place a strong emphasis on employee well-being, health and safety, and we are dedicated to upskilling our workforce as we evolve and grow. To cultivate a strong talent pipeline, we proactively engage with young talents both within and outside our organization, offering them pathways t
Slide 39: Create Shared Value
Create Shared Value Overview of Our Social Impacts in FY2024 3 key focuses of NWS Charities Foundation Empower for Change 70+ 330+ 5 • Building capacities for disadvantaged groups to access volunteering flagship scalable jobs collaborative • 17,000+ community Developing future skills that are partne
Slide 40: Thank You
All NWS Thank You
Slide 41: Disclaimer
Disclaimer NWS Holdings Limited (“NWS”) makes no representation or warranty of any kind, express, implied or statutory regarding the accuracy or completeness of the information contained. It is not the intention to provide, and you may not rely on this presentation as providing, all material informa