Hysan Development Co., Ltd. · HKEX:14
Hysan Development — FY2019 Earnings Presentation
29 slides from Hysan Development's earnings presentation, Feb 20, 2020
Slide 1: Hysan Development 2019 Annual Results Press Conference
Hysan Development 2019 Annual Results Press Conference 20 February, 2020
Slide 2: Remarks by Ms. Irene Yun Lien LEE, Chairman
20 February, 2020 | Page 2 Remarks by Ms. Irene Yun Lien LEE Chairman
Slide 3: 2019 Annual Results Highlights
2019 Annual Results Highlights 20 February, 2020 | Page 3 • Turnover and Recurring Underlying Profit increased by 2.5% and 2.0% respectively • A robust first half helped ease the impact of a negative second half • Hysan’s balanced dual-engine portfolio of Office and Retail provides a stable platform
Slide 4: Impact from Different Fronts
Impact from Different Fronts 20 February, 2020 | Page 4 • External factors: global uncertainties and U.S./China tensions affected Hong Kong’s general economic well-being • Domestic front: social conflicts in second half of the year had immediate adverse effect • Hong Kong retail sales dropped 11% in
Slide 5: Managing the Crisis
Managing the Crisis 20 February, 2020 | Page 5 • Throughout these difficult times, Hysan’s management team delivered swift, proactive solutions and support to manage the impact on staff, tenants and shoppers. Office and retail tenants were largely in business-as-usual mode • All stakeholders worked
Slide 6: Synergy from a Balanced Portfolio
Synergy from a Balanced Portfolio 20 February, 2020 | Page 6 • A dual engine business: a stable platform • Balanced portfolio and synergies ensure Hysan remain more resilient to unexpected disruptions and impacts Turnover Contribution Retail Office 1,836 Million 1,833 Million 46% 46% Residential 319
Slide 7: Synergy from a Balanced Portfolio (Con't)
Synergy from a Balanced Portfolio (Con’t) 20 February, 2020 | Page 7 • Lee Gardens premium brands retention shows our area curation ability and strong partnerships with tenants • Balanced by a broad range of retail and F&B outlets with different price points for different tastes • Vibrant neighbourh
Slide 8: Synergy from a Balanced Portfolio (Con't)
Synergy from a Balanced Portfolio (Con’t) 20 February, 2020 | Page 8 • The completion of Lee Garden Three expanded the number of quality local and multinational office tenants • More demand from increasingly discerning office tenants drive broader and more diverse retail offerings • Positive self-su
Slide 9: Flex Space in Lee Gardens
Flex Space in Lee Gardens 20 February, 2020 | Page 9 • The convenience and vibrancy make Lee Gardens ideal for flex • Flex extended our catchment to entrepreneurs and shared economy • Co-working industry faces inevitable consolidation in Hong Kong, and those with proven business models expected to s
Slide 10: Evolution of a Vibrant Community
Evolution of a Vibrant Community 20 February, 2020 | Page 10 • Lee Gardens is an extraordinary place infused with old Hong Kong and the Hong Kong of today • Residents, shoppers, workers, businesses help build the community in the past 100 years • Hysan carried out asset enhancements, redevelopments,
Slide 11: Strengthening Sustainability
Strengthening Sustainability 20 February, 2020 | Page 11 • Long-term thinking comes naturally to Hysan • Stakeholders’ demand for sustainability have grown significantly in recent years • Our Board established a Sustainability Committee to provide long-term direction and guidance, to be supported by
Slide 12: Outlook
Outlook 20 February, 2020 | Page 12 • Hong Kong’s economic outlook clouded by global headwinds and domestic factors • COVID-19 has introduced an unprecedented further challenge after many months of social unrest • We are committed, as we have been in the past 97 years, to support our community throu
Slide 13: Presentation by Mr. Roger HAO, Chief Financial Officer
20 February, 2020 | Page 13 Presentation by Mr. Roger HAO Chief Financial Officer
Slide 14: 2019 Annual Results Highlights
2019 Annual Results Highlights 20 February, 2020 | Page 14 2019 2018 HK$'M HK$'M % Turnover 3,988 3,890 2.5% Recurring Underlying Profit 2,587 2,536 2.0% Underlying Profit 2,587 2,536 2.0% - Fair value gain on investment properties located in ‧ Hong Kong 690 3,388 -79.6% ‧ Shanghai* 1,528 96 n/m - I
Slide 15: 2019 Annual Performance: By Portfolio
2019 Annual Performance: By Portfolio 20 February, 2020 | Page 15 Turnover (HK$’M) 4,500 3,890 3,988 4,000 279 (7.2%) 319 (8.0%) 3,500 3,000 1,688 1,833 2,500 (43.4%) (46.0%) 2,000 1,500 1,000 1,923 1,836 (49.4%) (46.0%) Residential 500 Office Retail 0 2018 2019
Slide 16: Strong Financial Position
Strong Financial Position 20 February, 2020 | Page 16 Gearing Debt Profile • Total Net Debt: HK$3,279 million • Fixed Rate Debt: 84.0% of the total gross debt (31 December 2018: HK$3,510 million) (31 Dec 2018: 75.5% of the total gross debt) • Net Debt to Equity: 4.1% • Average Debt Maturity: 6.6 yea
Slide 17: Presentation by Mr. Ricky LUI, Chief Operating Officer
20 February, 2020 | Page 17 Presentation by Mr. Ricky LUI Chief Operating Officer
Slide 18: 2019 Performance: Office Portfolio
2019 Performance: Office Portfolio 20 February, 2020 | Page 18 • Office portfolio turnover increased by 8.6% to Office Portfolio Turnover (HK$’M) HK$1,833 million 2,000 1,900 • Occupancy: 98% as at 31 December 2019 1,833 1,800 1,688 • The performance reflected overall positive 1,700 rental reversion
Slide 19: 2019 Performance: Office Portfolio
2019 Performance: Office Portfolio 20 February, 2020 | Page 19 • Still a balanced portfolio with different industries represented Office Portfolio Others 14% Banking & Finance Consumer Products 24% 3% Marketing 3% High-end Retailers 4% Information Technology 7% Professional & Consulting 16% Semi-Ret
Slide 20: 2019 Performance: Retail Portfolio
2019 Performance: Retail Portfolio 20 February, 2020 | Page 20 • Retail portfolio turnover was HK$1,836 million, Retail Portfolio Turnover (HK$’M) down by 4.5% from 2018 2,000 1,925 1,923 • Contribution from turnover rent of HK$66 million 1,900 1,836 1,800 • Occupancy: 96% as at 31 December 2019 1,7
Slide 21: Performance: Retail Portfolio
Performance: Retail Portfolio 20 February, 2020 | Page 21 • Second half of 2019 mall operations in Hong Hong Kong Retail Sales Kong intermittently disrupted by social conflicts Jan-Dec 2019 Type of retail outlet (YoY) • Hysan’s estimated drop in overall tenants sales on par with Hong Kong’s overall
Slide 22: 2019 Performance: Retail Portfolio
2019 Performance: Retail Portfolio 20 February, 2020 | Page 22 Trade Mix Enhancement Opened in 2019 Relocated in 2019 Renovated in 2019 Hysan Place - b+ab - Yum Yum Goose & Co - TOUS - Popcorn General Store (with expansion) - Chun Shui Tang - Yankee Candle - Didier Dubot - Hollister / Gilly Hicks (w
Slide 23: 2019 Performance: Residential Portfolio
2019 Performance: Residential Portfolio 20 February, 2020 | Page 23 • Residential portfolio turnover increased by 14.3% Residential Portfolio Turnover (HK$’M) to HK$319 million 330 319 310 290 279 264 • Positive rental reversion on renewals, rent review 270 250 and new lettings 230 210 190 • Occupan
Slide 24: Tai Po Luxury Residential Project
Tai Po Luxury Residential Project 20 February, 2020 | Page 24 • Major design, including the architecture, structure, building services and typical interior design completed. Landscape and clubhouse design in good progress • Foundation and basement works largely completed, superstructure works began
Slide 25: Community Highlights in 2019
Community Highlights in 2019 20 February, 2020 | Page 25 • Growing Lee Gardens as a community complements the dual-engine model • Unveiled Bizhouse which combines living and working in a regenerated low-rise building • Urban Sky in Hysan Place adds an arts and culture venue and enlivened a previousl
Slide 26: Loyalty Programmes and Children's Initiatives
Loyalty Programmes and Children’s Initiatives 20 February, 2020 | Page 26 • In the process of consolidating our two loyalty programmes into a single operating platform • All operations, including mobile app, points systems for rewards and members communications, will be more streamlined and user-fri
Slide 27: More on Loyalty Clubs and Marketing Events
More on Loyalty Clubs and Marketing Events 20 February, 2020 | Page 27 • Electronic gift coupon system with more than 20,000 transactions gives multiplier effect for retail tenants and replaced old-fashioned paper coupons • More than 160 marketing events in collaboration with tenants, 25% growth fro
Slide 28: Business Tech Applications
Business Tech Applications 20 February, 2020 | Page 28 • Area-wide Wifi and IoT provide a clearer picture of demographics of our visitors and their traffic patterns: also help to gain better foresight for our operational planning • In 2020 and the near future, we plan to further use data analytics a
Slide 29: Hysan Development 2019 Annual Results Press Conference
Hysan Development 2019 Annual Results Press Conference 20 February, 2020
Hysan Development Company — FY2019 Earnings Presentation on 6ix