Far East Consortium International Limited · HKEX:35
Far East Consortium International — FY2022 Earnings Presentation
54 slides from Far East Consortium International's earnings presentation, June 2022
Slide 1: FY2022 Annual Results
FY2022 Annual Results June 2022
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 Annual Results Summary 2. Review of Operations 3. Prospects 4. Appendices 3
Slide 4: 1. FY2022 Annual Results Summary
1. FY2022 Annual Results Summary Concept of Queen’s Wharf Brisbane 4
Slide 5: FEC - 50 Years of Achievements
FEC - 50 Years of Achievements Listed on the Hong Kong Stock Able to steer through crises Exchange for Deep-rooted regional teams and strong 50 years balance sheet are key strengths Now with Transformed from a 4 core businesses local operation to one with approx. HK$74 bn of delivering large-scale t
Slide 6: Milestones - Past, Present and Future
Milestones - Past, Present and Future International Looking Early Years Expansion FEC Today Ahead Phase Listed on the Hong Kong Announced regionalisation Presently in 9 countries in 4 core Expand Stock Exchange in 1972 strategy businesses Deepen regional operations, increase Streamlined business and
Slide 7: Key Achievements of FY2022
Key Achievements of FY2022 Sustainable growth of core businesses • Property development: Cumulative presales at HK$16.7 bn • Hotel: Continuous fine-tuning of business strategy resulted in strong revenue growth of 58.1% in FY2022 vs FY2021 • Car park: Consistent organic growth after winning many new
Slide 8: Diversification Yields Resilience
Diversification Yields Resilience HK$ mn FY2022 FY2021 % change Revenue 5,896 5,944 -0.8% Adjusted revenue(1) 7,139 5,944 +20.1% Gross profit margin 33.7% 31.0% N/A Profit before tax 1,854 1,266 +46.4% Net profit attributable to shareholders 1,300 543 +139.4% Adjusted cash profit(2) 1,425 630 +126.2
Slide 9: Solid GP Margins With Significant Improvement In Recurring Income Businesses
Solid GP Margins With Significant Improvement In Recurring Income Businesses FY2022 FY2021 Gross profit Gross profit Gross profit Gross profit Revenue Revenue (after depreciation) (before depreciation) (after depreciation) (before depreciation) HK$ mn HK$ mn Margin HK$ mn Margin HK$ mn HK$ mn Margin
Slide 10: Goals of Long-Term Dividend and NAV/Share Growth Intact
Goals of Long-Term Dividend and NAV/Share Growth Intact • NAV increased despite a current challenging business environment • Continuing to deliver a sustainable and attractive dividend is a priority for the Group 10-Year NAV CAGR : 7.5% 10-Year DPS CAGR: 12.8% 22.0 22.0 13.81 20.0 13.29 13.09 18.5 1
Slide 11: Strong and Liquid Balance Sheet
Strong and Liquid Balance Sheet • Disposals of non-core assets and presales moving to completion will strengthen liquidity and balance sheet position HK$ mn As at 31.3.2022 As at 31.3.2021 Due within 1 year(1) 11,450 12,274 Due 1-2 years 10,643 5,939 Due 2-5 years 8,106 6,581 Due more than 5 years 9
Slide 12: A Steady Flow of Liquidity
A Steady Flow of Liquidity • Available existing liquidity of HK$18 bn (cash position and undrawn facilities) far exceeds the capex of HK$3.5 bn • Presales of HK$16.7 bn provides visibility on future cash inflow streams • Unencumbered hotels and completed residential inventory can be used to increase
Slide 13: Strong Liquidity and Debt Interest Coverage
Strong Liquidity and Debt Interest Coverage • Consistently solid liquidity ratios demonstrate ability to meet financial obligations 2.50 1,600 9.00 2.24x 1,425 7.87x 1,400 8.00 2.00 1.81x 7.00 6.66x 1,200 1.54x 6.00 1,000 1.50 895 5.00 800 4.00 3.77x 630 1.00 600 3.00 400 2.00 0.50 200 1.00 0.00 0 0
Slide 14: Active Recycling Non-Core Assets and Seizing Attractive Opportunities
Active Recycling Non-Core Assets and Seizing Attractive Opportunities Asset sale Land replenishment Sale of hotels (completed) • Entered into 50/50 JV with New World Development to acquire a site in Kai Tak, Hong Kong for residential development, with approximately • Dorsett City London GBP115 mn 50
Slide 15: Re-establishing Growth Momentum
Re-establishing Growth Momentum Recent Completions Recent Launches Upcoming Completions/Openings • West Side Place (Towers 1 and 2) • Mount Arcadia • West Side Place (Towers 3 and 4) • MeadowSide (Plots 2, 3 and 5) • Victoria Riverside • Hornsey Town Hall • Dorsett Gold Coast • Queen’s Wharf Residen
Slide 16: Strong Property Development Pipeline in the Next 5 Years
Strong Property Development Pipeline in the Next 5 Years FY2022 FY2024 FY2026 FY2023 FY2025 HK • Mount Arcadia • Kai Tak Development - Office • Kai Tak Residential(3) SG • Hyll on Holland(2) • Cuscaden Reserve(4) • Dorsett Place MY Waterfront Subang(3) • MeadowSide • Hornsey Town Hall • Victoria Riv
Slide 17: 2. Review of Operations: Property Development
2. Review of Operations Property Development West Side Place, Melbourne 17
Slide 18: Presales Offers Good Cash Flow Visibility
Presales Offers Good Cash Flow Visibility • Over HK$66 bn of saleable residential inventory As at 31.03.2022 Location Cumulative presales Expected attr. SFA (1) Expected attr. GDV(2) Expected Cumulative presale Notes: Projects under presale (HK$'M) (sq.ft.) (HK$'M) Completion as % of GDV 1 West Side
Slide 19: Significant Large-Scale Projects Added to Pipeline at Attractive Costs
Significant Large-Scale Projects Added to Pipeline at Attractive Costs 1 4 Kai Tak Residential Three land parcels [Two/three parcels] Hong Kong Manchester • Signed SPA in November • For addition to the Victoria 2021 North mega-scale project • 50/50 JV with New World • To be developed into a Developm
Slide 20: Recent Launch – Mount Arcadia, Hong Kong
Recent Launch – 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 well as the exce
Slide 21: Recent Launch – Queen's Wharf Residences (Tower 5)
Recent Launch – 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. The project o
Slide 22: Upcoming Completion in FY2023 – MeadowSide, Manchester
Upcoming Completion in FY2023 – MeadowSide (Plots 2, 3 and 5), 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 city centre. The projects overlook Angel Meadow Park, t
Slide 23: Upcoming Completion in FY2023 – Hornsey Town Hall, London
Upcoming Completion in FY2023 – Hornsey Town Hall, London An Artistic Building Rooted in History An iconic art deco building located in the heart of Crouch End, with excellent transportation connectivity to Central London. The project comes with options for many different lifestyles, offering an art
Slide 24: Upcoming Completion in FY2023 – New Cross Central, Manchester
Upcoming Completion in FY2023 – New Cross Central, Manchester Stylish Design Inspired by Manchester’s History and Character Located in the centre of a lively, up-and-coming neighbourhood in Manchester, this development is surrounded by indie shops and F&B spaces. The homes feature red brick exterior
Slide 25: Upcoming Completion in FY2023 – West Side Place (Towers 3 and 4)
Upcoming Completion in FY2023 – West Side Place (Towers 3 and 4), Melbourne A New Height of Cosmopolitan Living These two towers make up Stage 2 of West Side Place, a major mixed-use development located next to our existing Upper West Side development. It is proudly positioned in Melbourne’s CBD gri
Slide 26: Upcoming Completion in FY2023 – The Star Residences (Tower 1)
Upcoming Completion in FY2023 – The Star Residences (Tower 1), Gold Coast Live in the Heart of Gold Coast’s World-Class Integrated Resort Located at The Star Gold Coast on Broadbeach Island, Tower 1 is one of 5 total towers in this mixed-use development. The site is adjacent to Pacific Fair Shopping
Slide 27: Upcoming Launch in FY2023 – Monument, Melbourne
Upcoming Launch in FY2023 – Monument, Melbourne An Exciting Mixed-Use Development Next to Our Previous Projects Monument, an exciting mixed-use development located at 640 Bourke Street in Melbourne, offers a variety of uses including retail, café, commercial office, public gallery spaces and childca
Slide 28: Upcoming Launch in FY2023 – Kai Tak Residential
Upcoming Launch in FY2023 – Kai Tak Residential Significant New Development Along the Waterfront The development is at the heart of the Hong Kong government’s redevelopment plans, providing residents with access to upgraded infrastructure. Its location offers a tranquil sea view for rest and relaxat
Slide 29: 2. Review of Operations: Hotel Operations & Management
2. Review of Operations Hotel Operations & Management Dorsett Gold Coast 29
Slide 30: Hotel - Strong Recovery
Hotel - Strong Recovery • Reopening offers significant upside potential Dorsett Group FY2022 FY2021 YoY change Notes: Hong Kong (1) Excludes Oakwood Premier AMTD Occupancy rate 77.1% 75.5% +1.6ppts Singapore, which is equity accounted. Average room rate (HK$) 892 533 67.4% RevPAR (HK$) 687 402 70.9%
Slide 31: Hotel Opening in FY2022 - Dorsett Gold Coast
Hotel Opening in FY2022 - Dorsett Gold Coast A Successful Grand Opening on Boxing Day • The Group’s first Dorsett hotel in Australia after opening on 26 December 2021 • A short walk to the renowned Gold Coast beaches • Showcases artwork by Gold Coast locals • Offers eco-friendly features such as pap
Slide 32: Pipeline Hotels to Add to Growth Momentum
Pipeline Hotels to Add to Growth Momentum • 12 new hotels under construction in Australia, the UK and As at 31.3.2022 As at 31.3.2025 Hong Kong with 2,935 rooms (including one Ritz-Carlton) in the next 3 years 8,149 11,084 • Dorsett Gold Coast commenced operations on 26 December 2021 while Dao by Do
Slide 33: New Hotel Addition in FY2023 – Dao by Dorsett West London
New Hotel Addition in FY2023 – Dao by Dorsett West London New Build Aparthotels with Slick and Chic City Interiors • As the first Dorsett property to adopt an aparthotel model, Dao by Dorsett West London represents a fresh take on the Group’s hotels • Comprises one or two-bedroom, fully-serviced apa
Slide 34: New Hotel Addition in FY2023 – Ritz-Carlton Melbourne
New Hotel Addition in FY2023 – Ritz-Carlton Melbourne An Expression of Timeless Luxury • Occupies the top 18 floors of West Side Place (Tower 1), Melbourne • The tallest hotel in Australia and the Southern Hemisphere • Offering stunning and expansive views over the Docklands bay and cityscape • Surr
Slide 35: 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 36: 2. Review of Operations: Car Park Operations
2. Review of Operations Car Park Operations Care Park Control Room, Melbourne 36
Slide 37: Loosened Restrictions Led to a Strong Recovery
Loosened Restrictions Led to a Strong Recovery • Car park operations made a strong recovery, 31.3.2022 31.3.2021 with revenue increasing 32.3% year-on-year No. of No. of No. of No. of • Won many new management contracts to Car Park Bays Car Park Bays further organic growth Australia • Continued recy
Slide 38: 2. Review of Operations: Gaming Operations
2. Review of Operations Gaming Operations PALASINO Furth im Wald, Czech Republic 38
Slide 39: Queen's Wharf Opening to Add to Income Stream
Queen’s Wharf Opening to Add to Income Stream Casino Licence Terms • 99 years with a 25-year casino exclusivity period within 60 kilometers from the Brisbane CBD • 2,500 slots & unlimited gaming tables (including electronic derivations) A World-Class Integrated Resort Details • Opening of casino por
Slide 40: PALASINO - Strong Recovery Following COVID-19
PALASINO - Strong Recovery Following COVID-19 Rebound in Attendance and Revenue • After reopening in May 2021, revenues reached HK$231 mn, a 163.6% increase as compared to FY2021 • Rebranded as PALASINO to prepare for the addition of an online gaming division • Application for online gaming licence
Slide 41: Leveraging Our Partnership with The Star
Leveraging Our Partnership 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/Residential Pyrmont The Sta
Slide 42: 2. Review of Operations: Other Businesses
2. Review of Operations Other Businesses MeadowSide, Manchester 42
Slide 43: BC Invest – Another Year of Strong Growth with More to Come
BC Invest – Another Year of Strong Growth with More to Come Overview Catalysts for FY2023 • AUM increase driven by organic growth and the • Organic growth remains strong Mortgageport acquisition • Considering more acquisitions if the fit is right • Entrance into UK market met with a positive respons
Slide 44: 3. Prospects
3. Prospects The Star Residences, Gold Coast 44
Slide 45: Outlook – Property Development and Hotels
Outlook – Property Development and Hotels Property Strong unbooked presales and pipeline provides good visibility Development • Planning new launches, with steady completions and settlements in coming years - Expected launch of Monument in Melbourne and Kai Tak Residential in Hong Kong - Mount Arcad
Slide 46: Outlook – Car Park, Gaming and BC Invest
Outlook – Car Park, Gaming and BC Invest Car Park Leveraging existing car park portfolio to grow management business Operations • Continued improvement in performance expected as restrictions loosen • Significant opportunities to dispose more non-core assets • Winning new management contracts Gaming
Slide 47: Enhance ESG Efforts to Create Long-Term Value
Enhance ESG Efforts to Create Long-Term Value Strengthen Governance to Improve ESG Performance Formed key internal committees within the ESG Working Group to support the ESG Steering Committee Create strategic ESG Direction for the Group Developed KPI’s with Introduced new Refining Group-level input
Slide 48: Reputable Awards for IR and ESG Work
Reputable Awards for IR and ESG Work FY2022 FinanceAsia’s Best Companies Poll 2021 11th Asian Excellence Award 2021 • Asia’s Overall Best Managed Company • Asia’s Best CEO: Mr. David Chiu, Chairman and • Best Managed Listed Company in Hong Kong Chief Executive Officer • Best CEO in Hong Kong • Asia’
Slide 49: 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 49
Slide 50: 4. Appendices
4. Appendices Mount Arcadia, Hong Kong 50
Slide 51: Analysis of Short-Term Debt
Analysis of Short-Term Debt Bank loans and notes due within 1 year as at Status HK$ mn 31.3.2022 Mostly secured and expected to be rolled over or Revolving loans 5,357 refinanced Mostly backed by presales proceeds upon settlement or Project development loans 2,864 refinanced Other term loans Mostly
Slide 52: Impact of Foreign Exchange Rates
Impact of Foreign Exchange Rates • Movement in foreign currencies impacted balance sheet position • Assuming exchange rates remained constant, net asset value(1) would have been HK$38 million higher as at 31 March 2022 Rates as at 31.3.2022 31.3.2021 % change Average rates for 31.3.2022 31.3.2021 %
Slide 53: Significant Hidden Value in FEC's Hotel Portfolio
Significant Hidden Value in FEC’s Hotel Portfolio Capital Value @ Revaluation City / Country Description Rooms 31.3.2022 Surplus Notes: (HK$ mn) (HK$ mn) (1) The property will be rebranded as Hotels in operation Hong Kong Dao by Dorsett AMTD Singapore on 1 Dorsett Wanchai Hong Kong Amid Wanchai and
Slide 54: Details of Major Investment Properties
Details of Major Investment Properties Total GFA Total GFA Current Investment Properties (sq. ft.) Pipeline Investment Properties (sq. ft.) FEC Building, Central, Hong Kong 3,000 Queen's Wharf Brisbane (1), Brisbane 213,100 FEC Building, Nathan Road, Hong Kong 38,700 Kai Tak Development - Office, Ho
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