Hysan Development Co., Ltd. · HKEX:14
Hysan Development — FY2022 Earnings Presentation
37 slides from Hysan Development's earnings presentation, Feb 17, 2023
Slide 1: 2022 Annual Results Analyst Briefing
2022 ANNUAL RESULTS ANALYST BRIEFING Hysan Development Company Limited 17 February 2023 1
Slide 2: Disclaimer
Disclaimer This document has been prepared for general information purposes only, and is not, and should not be construed as an offer to sell, or a solicitation of an offer to buy any securities. Information and estimates contained and opinions expressed herein have been complied in good faith by Hy
Slide 3: Keynote Address
Keynote Address Chairman Ms. Irene Lee 3
Slide 4: Hong Kong's Role Remains Important and Strategic
Hong Kong’s Role Remains Important and Strategic Global economy in 2022 was impacted by COVID-19, and by macroeconomic factors that included geopolitical tensions, war, inflation, interest rate hikes, supply chain disruption, energy and food crisis Hong Kong was not immune to external volatility. Th
Slide 5: Hysan's Enduring Appeal
Hysan’s Enduring Appeal Strong core portfolio complemented by strategic pillars Unparalleled destination for businesses to thrive Community-based business model Long-term commitment to green and sustainable growth Strategic execution with a focus on financial discipline, risk management, and dynamic
Slide 6: Time for Core Rejuvenation
Time for Core Rejuvenation An area-wide rejuvenation, together with the Caroline Hill development, will significantly expand our footprint and reach Transforming Lee Gardens for the next century: Fully integrated and connected Lee Gardens community 6
Slide 7: Lee Gardens for the Next Century
Lee Gardens for the Next Century The Trendsetter Hysan Hysan Place Place Gateway to Lee Gardens Home of Luxury Flagships LG1, LG2, LG3 & LG5 Seamless vertical journey linked by a Exclusive destination for top series of exciting international brands LG2 Pennington St destinations with a high level of
Slide 8: Lee Gardens for the Next Century: Walkable Community
Lee Gardens for the Next Century Walkable Community Covered walkways and footbridges connecting the high traffic from the busy CWB MTR exit from Hysan Place to Caroline Hill Road Development by 2026 Hysan Place LG2 Pennington St LG5 LG1 Lee Theatre LG5 One LG3 LG2 Hysan Leighton Avenue Center LG6 OV
Slide 9: On Track with our Strategic Pillars
To Kwa Wan URA On Track with our VILLA LUCCA Residential Project Strategic Pillars Medical & Health – Lee Gardens Shanghai GBA Flex Business with IWG Investment in New Frontier 9
Slide 10: Embedding Sustainability for the Future
Embedding Sustainability for the Future We are committed to inclusivity, diversity, social wellbeing, climate change preparedness, and liveability within the communities we serve 10
Slide 11: Outlook
Outlook The after effects of the pandemic and geopolitical tensions combined with recession, inflation and high interest rates will remain challenging The reopening of the border and the resumption of business and social activities will help revive our city’s status as a financial, trading and touri
Slide 12: Business & Operation Review
Business & Operation Review Executive Director & Chief Operating Officer Mr. Ricky Lui 12
Slide 13: 2022 Annual Results
2022 Annual Results Group Financial Performance Revenue Underlying Profit DPS HK$ 3,460M (-4.1%) HK$ 2,129M (-8.6%) HK$ 1.44 (flat) By Sector Revenue (HK$M) 3,788.4 3,780.8 3,773.2 3,765.7 3,758.1 3,750.5 3,742.9 3,735.4 3,727.8 3,720.2 3,712.6 3,705.1 3,697.5 3,689.9 3,682.3 3,674.7 3,667.2 3,659.6
Slide 14: Retail
Retail Hysan Quarterly Tenant Sales Trend (2021 - 2022) Retail Portfolio Turnover Occupancy HK$ 1,643M (+1.4%) 99% Overall consumption demand in 2H 2022 was supported by a generally stable pandemic situation and a stronger labour market 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 Continued to optimise t
Slide 15: Office
Office Vacancy Rate 12% 10% Office Portfolio Turnover Occupancy HK$ 1,578M (-8.7%) 90% Hysan HK Grade A offices Office Tenant Profile by Area (2022 Year-end) Hong Kong’s office market remained challenging Others Banking, 15.1% Wealth Management & Global economic uncertainties, interest rate hikes, a
Slide 16: Marketing Initiatives and Loyalty Programmes
Marketing Initiatives and Loyalty Programmes Dual Loyalty Engines Non-member sales 2022 CA Tenant sales LGC Loyal member sales Over 60% Loyalty programmes to target two different groups of customers Lee Gardens Club (“LGC”) incubates future VIP members for Club Avenue (“CA”) 16
Slide 17: Marketing Initiatives and Loyalty Programmes
Marketing Initiatives and Loyalty Programmes Superior and digitised O2O experience A seamless O2O engagement digital platform was launched Online/offline Hy! Platform continued to gain traction Solid tenants’ participation from over 100 tenants Over 54,000 products were sold 17
Slide 18: Residential
Residential Hong Kong’s luxury residential leasing market remained quiet due to macroeconomic conditions and travel restrictions leading to subdued demand from expatriates 18
Slide 19: Core Expansion and Pillars Update
Business & Operation Review Core Expansion and Pillars Update 19
Slide 20: Lee Gardens Rejuvenation
= Hysanfiti | Lee Gardens Rejuvenation ° a
Slide 21: Upgrades for LG1 and LG5
Upgrades for LG1 and LG5 Home of Luxury Retails Top luxury flagships occupy a total space of over 50,000 sq ft Hysan Avenue Façade (Hermes & Chanel Yun Ping Road Façade (New Entrance) Façade to be changed) Re-create the Boulevard along Hysan Avenue with Major Renovations at Lee Garden One and Lee Ga
Slide 22: Hysan Place Refurbishment
Hysan Place Refurbishment A seamless vertical journey linked by series of attractions Hysan Place - GATEWAY to Lee Gardens Area Be the 15F Interactive Gallery / Showroom Hysan Place: the Trendsetter Destination 14F Gathering place with 13F New Lifestyle & multiple attractions 12F Dining Experience 1
Slide 23: Caroline Hill Road Development
Caroline Hill Road Development Foundation works Sep 2022 commenced in Project Completion 2026 and Connecting Walkway (estimated) (from CWB MTR station to the site) Foster + Partners as the Design Architect New standard for premium Grade A office space Spatial Efficiency Sustainability Flexibility Am
Slide 24: Caroline Hill Road Development
Caroline Hill Road Development More than 60,000sf public open space Performing Art & Culture facilities Lifestyle Retail and F&B offerings Art Library Auditorium G/F Weekend Market Central Promenade Multi-Green Decks on High Zone & Rooftop 2/F Discovery Garden G/F F&B Spill Out Ground Floor Entrance
Slide 25: A Weather-proof Pedestrian Link System
A Weather-proof Pedestrian Link System A Connected Lee Gardens Community Performing Art Art Installation Natural Sunlight Greenery HP LG2 LG1 LG5 HYSAN LEE IMMEDIATE LTP GARDENS SURROUNDINGS CHR PLACE OHA LC LG3 LG6 OVT Pedestrian Links with Covered Caroline Hill Walkway and Footbridges Development
Slide 26: Core Expansion and Strategic Pillars
Core Expansion and Strategic Pillars Lee Gardens To Kwa Wan New Frontier VILLA LUCCA GBA Flex Shanghai Residential Investment Anticipation of Pre-leasing Leverage Hysan’s Generally resilient Strategic more interest activities resumed skillset by with strong exposure to the from local and after the l
Slide 27: Sustainability
Sustainability =) Hysan#i ti 27
Slide 28: Hysan's Community Business Model
Hysan’s Community Business Model Community Business Model Curate sustainable communities with thriving neighborhoods that are agile and resilient towards changes. Foster connection between people and place; past, present and future. Inclusivity Positive Economic Social Climate Change Liveability Imp
Slide 29: Sustainability Performance
Sustainability Performance Benchmarking & Rating Remained 4-star Remained AA Remained A Remained as Low Risk Improved to 3.5 / 5 Awards and Accolades 8th Hong Kong Investor HKQAA’s Hong Kong Green and HKICPA’s Best Corporate HKMA Best Annual GBA Low Carbon Buildings Relations Association Sustainable
Slide 30: Sustainable Finance
Sustainable Finance CHR Project Financing: Green Sustainability – Bonds Linked Loan The Largest Green Loan in Hong Kong HK$ 1.5b HK$ 3.5b Sustainability – Sustainable HK$ 12.9b Linked Hedge Bonds HK$ 1.0b HK$ 0.4b Sustainable Finance Transactions as at 31 Dec 2022: HK$ 19.3b 48% of Total Debts and F
Slide 31: Financial Management
Financial Management Chief Financial Officer Mr. Roger Hao 31
Slide 32: Financial & Capital Management
Financial & Capital Management Shareholders’ Fund HK$ 70.2b (- 5.0%) NAV per share HK$ 68.4 (- 4.2%) DPS HK$ 1.44 (flat) 32
Slide 33: Dividend
Dividend Stable & Progressive DPS Track Record DPS (HK cent) 160 144 144 144 144 144 140 135 137 132 123 120 117 100 95 80 60 40 20 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 33
Slide 34: Financial & Capital Management Key Financial Metrics
Financial & Capital Management Key Financial Metrics Net Gearing Effective Interest Rate Debt Maturity Profile as at 31 Dec 2022 (HKD’m) 23.4% 2.8% Fixed Rate Debt Ratio Average Debt Maturity 61% 4.8 years 7,912 Undrawn Committed Sustainable Facilities Finance HK$ 9.9b 48% of total debts and facilit
Slide 35: Indicative Cap Rates
Indicative Cap Rates 31 Dec 2022 31 Dec 2021 Retail 5.25% - 5.50% 5.25% - 5.50% Office 4.25% - 5.00% 4.25% - 5.00% Residential 3.75% 3.75% 35
Slide 36: Thank You
— po. THANK YOU
Slide 37: 2022 Annual Results Analyst Briefing
2022 ANNUAL RESULTS ANALYST BRIEFING Hysan Development Company Limited 17 February 2023 37
Hysan Development Company — FY2022 Earnings Presentation on 6ix