Ctf Services Limited · HKEX:659

Ctf Services — NWS Holdings — FY2020 Earnings Presentation

39 slides from Ctf Services's earnings presentation, Sep 30, 2020

Slide 2: Table of Contents
Brand Story Table of INVEST FOR Contents  NWS Core Competencies & Financial Summary Section 1 PURPOSE  Core Business & Strategic Portfolio Highlight Section 2  Environment, Social & Governance Section 3  Appendices
Slide 3: NWS Core Competencies
Brand Story Solid & Resilient Business with Visible Prudent Financial Policy Underpinning for Core INVEST Recovery Prospect Growth & External Shocks  No structural change in our resilient  Well-managed financial profile & stable & Competencies FOR operations/assets manageable gearing at 31%  Long
Slide 4: Solid & Resilient Business with Visible Recovery Prospect
Solid & Resilient Business with Visible Recovery Prospect Brand Story Steady & solid performance during COVID-19  Capturing new premium projects in public & NWS INVEST private sector – Kai Tak, Murray Road, etc FOR Post-  ATL - Strong & steady AOP contribution in FY2020 PURPOSE COVID-19 Well posit
Slide 5: Defensive nature of NWS business
Brand Story Defensive nature of NWS business Risk INVEST Management FOR PURPOSE Resilient business Quality asset with Risk adverse portfolio mix with well diversified customer base fundamentals shown resilient steady AOP during COVID-19 contribution • Young & narrowbody fleet proven • AOP only down
Slide 6: Sustainable & Progressive Dividend Policy
Sustainable & Progressive Dividend Policy Supported by Brand Story Strong Balance Sheet 17 Consecutive Years of Dividend & Counting Dividend INVEST Sustainable & Progressive Dividend Policy 50% Payout on Net Profit FOR Policy on Absolute DPS PURPOSE DPS (HK$) • Very high payout in FY2019 & FY2020 •
Slide 7: NWS Strategic Development Roadmap
NWS Strategic Development Brand Story Strategic INVEST Disposals of non-core assets • BCIA • Tianjin Orient Container Terminals • New World First Ferry (60%) • Hip Seng Group • Tianjin Five Continents Int’l Container Terminal • NWS Transport Services Ltd (100%) Roadmap FOR PURPOSE Senior Management
Slide 8: Prudent Financial Policy Underpinning for Growth & External Shocks
Prudent Financial Policy Underpinning for Growth & External Brand Story Shocks Financial INVEST Well-managed maturity profile allowing financial flexibility for operations, potential investments & growth plans Debt Maturity Profile(1) (as of 30 Jun 2020) Policy FOR 60% PURPOSE Ample cash on hand Unu
Slide 9: Financial Summary
2019 2020 YoY Brand Story For the year ended 30 Jun (HK$MM) (HK$MM) change % Revenue 26,833.5 25,920.5 (3) Impairment loss includes INVEST Financial Attributable Operating Profit (AOP)(1) 4,707.4 3,514.3 (25) but not limited: • Tharisa plc Non-operating gains/(losses) 318.8 (1,631.3) • Chongqing Sil
Slide 10: AOP by Segment & Geography
Brand Story AOP by Segment & Geography AOP Contribution by Segment AOP Contribution by Geography INVEST Financial FOR Summary Core Business Others 12% represents 90% of AOP PURPOSE 8% Hong Kong Mainland 28% FY2019 China 60% 18% 30% 26% 21% 12% 10% -22% Others 12% -3% Roads Aviation Construction Insu
Slide 12: Roads: Expedited recovery
Core Business Brand Story Expedited recovery Segment AOP Roads INVEST ► Toll fee income for Jun 2020 almost reaching the same level as Dec 2019 HK$MM 15 toll roads in PRC (c. 740km) ► Protective measures for toll fee exemption in discussion with the PRC Govt FOR 1,806 YoY -50% PURPOSE ► Beijing-Zhuh
Slide 13: Aviation: Sound financial position to defy headwinds
Core Business Brand Story Sound financial position to defy headwinds Aviation INVEST ► Solid financial position & ample liquidity to weather crisis Segment AOP HK$MM Goshawk ► Rent deferrals granted to 9 customers (24 aircraft); aggregate rent FOR Aircraft leasing & management represented 1% of Gosh
Slide 14: Construction: Stable & resilient despite volatility
Core Business Brand Story Stable & resilient despite volatility Construction INVEST ► New contract awarded during FY2020: HK$8.8Bn(1) Segment AOP HK$MM Hip Hing ► Proven track record & technical expertise set us apart from competition FOR Inv in Wai Kee (c. 23%) YoY -11% PURPOSE ► Well-balanced sour
Slide 15: Insurance: Untapped potential to be unveiled
Core Business Brand Story Untapped potential to be unveiled Segment AOP Insurance INVEST ► Delivered strong AOP of HK$750MM for 8 months despite unfavorable market condition HK$MM FTLife Insurance FOR (wholly-owned subsidiary ► Balanced products portfolio with new innovative products roll out For 8
Slide 17: Environment: Resilient business
Strategic Portfolio Resilient business Environment ► SUEZ NWS Segment AOP • Contributed >65% of Environment AOP HK$MM • Overall water & wastewater treatment volume largely stable YoY • Avg. daily waste treatment volume -6% -44% 629 ► Derun Environment 355 Gradual recovery in • Positive and stable AO
Slide 18: Logistics: Delivered consistent performance
Strategic Portfolio Delivered consistent performance Logistics ► ATL Logistics Centre (ATL) (Contributed >70% of Logistics AOP) Segment AOP • Leading market player in HK & crown jewel asset in logistics warehouse HK$MM in GBA YoY • Adopt flexible strategy in response to potential impact from COVID-1
Slide 19: Facilities Management: Challenging business environment
Strategic Portfolio Challenging business environment Segment AOP Facilities ► HKCEC – Severely impacted by COVID-19 Management • No. of events held: 428 (-57% yoy) HK$MM • Total patronage: 4.6M (-46% yoy) YoY -96% ► Free Duty – Pending re-opening of borders • No. of tourists drop triggered by public
Slide 20: Transport: Business optimization
Strategic Portfolio Business optimization to achieve long term sustainable growth Transport ► Citybus (F1) & New World First Bus Segment AOP • On 21 Aug 2020, announced disposal of 100% of NWFB & Citybus at a HK$MM total consideration of HK$3.2Bn YoY -1,076% • Implied valuation of FY19(1) PE: 359.6x
Slide 21: Environment, Social & Governance (ESG)
Brand Story INVEST FOR PURPOSE Environment, Social & Governance (ESG)
Slide 22: ESG Achievements
Brand Story ESG Ratings (as of 7 Sept 2020) Awards NWS INVEST Outstanding Partnership Award 2019/20 Award won from The Hong Kong Council Achievements FOR of Social Service in collaboration with Po Leung Kuk, Hong Kong Young Women’s Christian Association and 10 in PURPOSE ESG schools in Tsuen Wan and
Slide 23: SDGs' Relevance to SV2030 and NWS Business Strategy
Brand Story SDGs’ Relevance to SV2030 and NWS Holdings’ Business Strategy Our INVEST FOR Sustainability PURPOSE Approach Green Smart Wellness Caring NWS Holdings Limited © All rights reserved 23
Slide 24: Sustainability Financing and Financial Implications
Brand Story Sustainability Financing Financial Implications NWS INVEST Achievements FOR NWS First Sustainability-linked Loan Electricity Use Reduction  Year-on-year reduction on electricity expenses in PURPOSE ESG  On 29 June, NWS announced first sustainability-linked loan with Crédit Agricole Cor
Slide 25: Quantifying our long term impacts
Brand Story Quantifying our long term impacts Our INVEST Energy Intensity Carbon Intensity • FY2020: reduced 40% • FY2020: reduced 38% FOR Sustainability • On Track • On Track PURPOSE Approach Water Intensity >90% reuse of Construction Wastes • FY2020: increased 7% (annual) • Behind Plan • FY2020: >
Slide 26: Climate Resilience Key initiatives
Brand Story Key initiatives Climate INVEST FOR Resilience • Climate Change Policy established (along with Sustainability Policy) • Set climate related targets (GHG(1) and Energy intensity reduction of 50% by 2030) PURPOSE Measures • Climate scenario planning study piloted to assess physical risks fo
Slide 27: Climate Resilience Key initiatives (cont'd)
Brand Story Key initiatives (cont’d) Climate INVEST Road Operator FOR Resilience - Use of technology to upgrade real- time surveillance on road PURPOSE Measures performance, minimizing idling time and traffic congestion, reducing greenhouse gas emissions Infrastructure Developer - Piloted embedded c
Slide 28: Appendices
Brand Story INVEST FOR PURPOSE Appendices
Slide 29: Corporate Structure
Brand Story Chow Tai Fook (Holding) Limited Corporate INVEST FOR Structure PURPOSE 17.HK 1929.HK Market Cap: HK$94Bn Market Cap: HK$102Bn 100% 61% 75% 825.HK Market Cap: HK$2.0Bn (“NWS” or the “Group”) 659.HK Market Cap: HK$23Bn Note: Market cap as at 29 Sep 2020 29
Slide 30: Business at a Glance
Brand Story Business at INVEST Core Business FOR a Glance PURPOSE Roads Aviation Construction Insurance  15 toll roads in the PRC  Goshawk Aviation Limited  Hip Hing Group provides  FTLife Insurance (total length of c.740 km) provides commercial professional construction Company Ltd aircraft lea
Slide 31: Portfolio of toll roads in PRC
Brand Story Portfolio of 15 toll roads in PRC c.740 km Appendices INVEST FOR PURPOSE Guangdong Zhejiang Hubei Tianjin Shanxi Hunan Roads # of Roads 7 1 1 1 3 2 Length 313.9 km 103.4 km 98.06 km 60.67 km 76.52 km 89.08 km Concession Expiry 2023–2035 2029 2040 2039 2023–2025 2038-2043 (1) (2) Cumulati
Slide 32: Aviation aircraft portfolio
Brand Story Appendices INVEST As at 30 June 2020, 162 aircraft on book(1) FOR Aircraft Type Geographical Spread PURPOSE Others 22% Aviation Asia and Europe A320/A321 16% 47% Middle-East 60% B737 America 31% 17% Others 7% Aircraft Leasing Portfolio Fleet size as of 30 Jun 2020(2) 233 aircraft (incl.
Slide 33: FTLife Insurance Investment Portfolio
FTLife Insurance Investment Portfolio (As of 31 Dec 2019) Brand Story Investment Portfolio AUM* (HK$’M) Asset Types Appendices INVEST 46,749 FOR 34,720 35,011 Equities 10% PURPOSE Fixed Income Private Insurance 76% Funds 1% Other assets & cash 2017 2018 2019 13% * Exclude Investment-Linked Assurance
Slide 34: Environment Business updates
Environment business includes 122 projects spanning 47 cities across Greater China region mainly through two Brand Story strategic platforms, SUEZ NWS Limited and Chongqing Derun Environment Co., Ltd. Appendices INVEST FOR PURPOSE Environment Business updates New projects Business updates • Expanded
Slide 35: Logistics: CUIRC and ATL Logistics Centre
Brand Story Appendices INVEST CUIRC FOR • JV with China State Railway Group, Urumqi Inner Mongolia Jilin PSA, CIMC & Deutsche Bahn Liaoning PURPOSE • 12 large-scale rail container terminals in Xinjiang Beijing Port Logistics the PRC Hebei Tianjin Dalian • 1 port project in Xiamen • Development of ra
Slide 36: Disposal of 100% of NWS Transport Services Ltd
Brand Story Disposal of 100% of NWS Transport Services Ltd Citybus & New World First Bus Appendices INVEST FOR Transaction Date 21 Aug 2020 (FY2021) PURPOSE Transport Purchasers Templewater Bravo Holdings Limited (90.8%), Hans Energy Company Limited (8.6%) & Ascendal Group Limited (0.6%) Transaction
Slide 37: Disposal of 60% of New World First Ferry Services Ltd
Brand Story Disposal of 60% of New World First Ferry Services Ltd Appendices INVEST FOR Transaction Date 4 May 2020 PURPOSE Transport Purchasers Chu Kong Shipping Enterprises (Group) Co., Ltd. (Stock code: 560.HK) Transaction • Disposal of 60% of New World First Ferry Services Limited (“NWFF”) Struc
Slide 38: INVEST FOR PURPOSE
Brand Story INVEST FOR PURPOSE
Slide 39: Disclaimer
Brand Story Disclaimer INVEST 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 FOR presentation as providin

NWS Holdings — FY2020 Earnings Presentation on 6ix

Ctf Services — NWS Holdings — FY2020 Earnings Presentation

Slide 1: FY2020 Annual Results Analyst Presentation

Slide 2: Table of Contents

Slide 3: NWS Core Competencies

Slide 4: Solid & Resilient Business with Visible Recovery Prospect

Slide 5: Defensive nature of NWS business

Slide 6: Sustainable & Progressive Dividend Policy

Slide 7: NWS Strategic Development Roadmap

Slide 8: Prudent Financial Policy Underpinning for Growth & External Shocks

Slide 9: Financial Summary

Slide 10: AOP by Segment & Geography

Slide 11: Core Business

Slide 12: Roads: Expedited recovery

Slide 13: Aviation: Sound financial position to defy headwinds

Slide 14: Construction: Stable & resilient despite volatility

Slide 15: Insurance: Untapped potential to be unveiled

Slide 16: Strategic Portfolio

Slide 17: Environment: Resilient business

Slide 18: Logistics: Delivered consistent performance

Slide 19: Facilities Management: Challenging business environment

Slide 20: Transport: Business optimization

Slide 21: Environment, Social & Governance (ESG)

Slide 22: ESG Achievements

Slide 23: SDGs' Relevance to SV2030 and NWS Business Strategy

Slide 24: Sustainability Financing and Financial Implications

Slide 25: Quantifying our long term impacts

Slide 26: Climate Resilience Key initiatives

Slide 27: Climate Resilience Key initiatives (cont'd)

Slide 28: Appendices

Slide 29: Corporate Structure

Slide 30: Business at a Glance

Slide 31: Portfolio of toll roads in PRC

Slide 32: Aviation aircraft portfolio

Slide 33: FTLife Insurance Investment Portfolio

Slide 34: Environment Business updates

Slide 35: Logistics: CUIRC and ATL Logistics Centre

Slide 36: Disposal of 100% of NWS Transport Services Ltd

Slide 37: Disposal of 60% of New World First Ferry Services Ltd

Slide 38: INVEST FOR PURPOSE

Slide 39: Disclaimer