Hysan Development Co., Ltd. · HKEX:14
Hysan Development — H1 2022 Earnings Presentation
38 slides from Hysan Development's earnings presentation, Aug 22, 2022
Slide 1: 2022 Interim Results Analyst Briefing
2022 INTERIM RESULTS ANALYST BRIEFING Hysan Development Company Limited 22 August 2022
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 of Hysan Development Ms. Irene Lee 3
Slide 4: Hong Kong: Now and Ahead
Hong Kong: Now and Ahead Hong Kong celebrates the 25th anniversary of HKSAR and ushers in new administration for the city Among the expectations for new administration: strengthen the momentum of policy development which aligns with National strategies and addresses critical and urgent issues of liv
Slide 5: COVID-19 5th Wave interrupted HK economic recovery seen in 2021
COVID-19 5th Wave in first months of 2022 interrupted HK economic recovery seen in 2021 But since Q2 2022, signs of recovery with: Relative moderation of pandemic Gradual relaxation of government measures Still concerns about outlook: COVID-19 figures slowing rising Global uncertainties affect econo
Slide 6: Proactive Management of our Core Business in Lee Gardens
Hysan’s Proactive Management of our Core Business in Lee Gardens Help Drive Traffic back into Area Smart Tenant Mix Quality Community and Service Business Experience Throughout malls and properties Model Curation More than: 25%↑ Estimated tenant sales in Q2 (when compared to Q1)
Slide 7: Core Reinforcement and Growth Pillars Strategy
Core Reinforcement and Growth Pillars Strategy
Slide 8: Core Reinforcement: Caroline Hill Road Project
Core Reinforcement Core Portfolio: Caroline Hill Road Project adds 30% to Core Portfolio WORK STARTED Q3 2022 8
Slide 9: Lee Gardens Rejuvenation
Lee Gardens Rejuvenation Hysan Place: Transformation after 10 years Trendsetting themes for different zones Lee Gardens: Home of luxury flagships, quality dining, special events and experiences Connectivity: Walkway to connect entire Lee Gardens including our new Caroline Hill Road buildings Sustain
Slide 10: Strategic Pillars: More Balanced, Diversified Portfolio
To Kwa Wan URA VILLA LUCCA Residential Project Strategic Pillars: Making good progress to deliver a more balanced, diversified and complementary portfolio Medical & Health – Lee Gardens Shanghai GBA Flex Business with IWG Investment in New Frontier 10
Slide 11: Exporting Work-Live Smart Community Business Model
We export our successful Work-Live Smart Community Business Model to other projects within Hong Kong and beyond - To Kwa Wan, Shanghai and more to come 11
Slide 12: Outlook
Outlook With gradual relaxation of restrictions, Hong Kong’s situation is improving Other major international cities are seeing their economies bounce back strongly Hong Kong’s economy will rebound and will maintain its status as a global financial and trading hub as well as a top tourist destinatio
Slide 13: Business & Operation Review
Business & Operation Review Executive Director & Chief Operating Officer Mr. Ricky Lui 13
Slide 14: 2022 Interim Results Group Financial Performance
2022 Interim Results Group Financial Performance Revenue Recurring Underlying Profits DPS HK$ 1,777M (-3.1%) HK$ 1,169M (-0.7%) HK 27 cents (flat) By Sector Revenue (HK$M) 1,925.7 1,921.8 1,918.0 1,914.1 1,910.3 1,906.4 1,902.6 1,898.7 1,894.9 1,891.0 1,887.2 1,883.3 1,879.5 1,875.6 1,834 1,774 1,87
Slide 15: Retail
Retail Hong Kong & Hysan Tenant Retail Sales (1H 2022, YoY) NEAR FULL OCCUPANCY as at June 30 98% Type of retail outlet Clothing, footwear and allied Hong Kong -13% Hysan (estimated) -4% products Food & Beverages -14% -19% COVID-19 5th wave: strict government Jewellery, watches and clocks, -7% -8% Q
Slide 16: 25 New Tenants
Hysan Attracted New F&B, Beauty, Sports and Kids’ Concept Stores 25 New Tenants Introduced to the Lee Gardens Area in 2022 16
Slide 17: Marketing Initiatives and Loyalty Programmes
Marketing Initiatives and Loyalty Programmes +4% (YOY) Savour the promotional sales Our online and digital platform is impactful and has been Spring engaging a new group of customers Sensations +10% (YOY) members engaged Our well-established loyalty clubs have provided a solid base Power Up 100+ for
Slide 18: Office
Office Proactive management of leases Office Tenant Profile by Area (as at 30 June 2022) 2022 expiry area 63% committed Others Continues to be popular among wealth management, 15.1% Banking, flexible workspace and “new economy” operators Wealth Management & Finance Marketing 24.7% 2.5% Retailers 3.8
Slide 19: Residential
Residential HK Luxury residential leasing market remained quiet partly due to lack of expats arriving in HK Bamboo Grove, an expat-focused rental building, offers more flexible terms to tenants and more incentives for agencies 19
Slide 20: Business & Operation Review: Core and Pillars Update
Business & Operation Review Core and Pillars Update 20
Slide 21: Caroline Hill Road Project
Caroline Hill Road Project Core Extension Structural Work Scheduled Q3 2022 To Start In Project Completion Late and Connecting Walkway 2026 (from CWB MTR station to the site) (estimated) A project expanding Lee Gardens by 30% Commercial GFA: 1.1 million sf Lifestyle Park and Greenery: 60,000 sf *Art
Slide 22: Lee Gardens Rejuvenation
Lee Gardens Rejuvenation HYSAN PLACE A full-scale revamp to retain our leadership as a trend-setter A seamless vertical journey linked by a series of Attractions LEE GARDENS A destination for luxury retail flagships, quality dining, special events and experiences 22
Slide 23: Business & Operation Review: Building The Pillars
Business & Operation Review Building The Pillars 23
Slide 24: Villa Lucca Tai Po Luxury Residential Project
VILLA LUCCA Residential Development and Sales Tai Po Luxury Residential Project Splendour of European-style mansions with high quality and privacy Its grounds command spectacular views of mountains and the sea Double honours at the Asia Pacific Property Awards for its Exceptional (Architectural) Des
Slide 25: Villa Lucca Garden Houses and Apartments
VILLA LUCCA Residential Development and Sales 262 Garden houses and apartments • 160 apartments • 66 special units • 34 houses • 2 signature houses 1,010 – 8,030 sq ft Unit Sizes 34,000 sq ft Superbly designed & equipped Clubhouse Commands spectacular views of Plover Cove, Tolo Harbour and Pat Sin L
Slide 26: Lee Gardens Shanghai
LEE GARDENS SHANGHAI Investment Property Acquisition Completed Jan 2022 Upgrade Work Started Jul 2022 Estimated Time for First Tenant 2H 2022 26
Slide 27: Greater Bay Area Flex – JV with IWG plc
GREATER BAY AREA FLEX – JV with IWG plc Strategic Pillar Hysan expanding footprint in the GBA and into flexible workspace business 2 new centres Added in Tower 535 and 8 QRE in Hong Kong 5 2 34 locations across GBA 8 with intention to expand in the region’s growing market 18 1 No. of Existing Centre
Slide 28: To Kwa Wan URA Residential Project
To Kwa Wan URA Residential Project Strategic Pillar Oversee the design and operation of the retail portion of the JV project (with Henderson Land and Empire Group Holdings) Exporting Hysan’s Community Business Model • Engaging the local community to the prosperity brought by the revitalization 28
Slide 29: Investment in New Frontier Group
Investment in New Frontier Group Strategic Pillar Provides strategic exposure for Hysan in Mainland China’s fast-growing healthcare sector, especially in the premium sector The leading private healthcare services provider in China opened Shenzhen New Frontier United Family Hospital in May 2022 servi
Slide 30: A Sustainable Community
A Sustainable Community 30
Slide 31: COVID Contributions
COVID Contributions Largest temporary Donations of air vaccination centre in purifiers, RAT kits, private portfolio at food and care the Caroline Hill package to people Road JV Site in need Leighton Centre In To Kwa Wan, community partnered with vaccination centre NGOs to provide free inspections of
Slide 32: Technology in the Community
Technology in the Community ➢ Jointly developed The Community Lab with Hong Kong Science and Technology Parks ➢ Helping new technology start-ups test innovations in a real world environment ➢ Lab also becomes venue for technological learning through talks and events 32
Slide 33: Financial Management
Financial Management Chief Financial Officer Mr. Roger Hao 33
Slide 34: Financial & Capital Management
Financial & Capital Management Shareholders’ Fund HK$ 72.4b (- 2.0%*) NAV per share HK$ 70.3 (- 1.5%*) DPS HK 27 cents (YoY: flat) 34 (*from 31 Dec 2021)
Slide 35: Financial & Capital Management: Key Financial Metrics
Financial & Capital Management Key Financial Metrics Net Gearing Effective Interest Rate Debt Maturity Profile as at 30 Jun 2022 (HKD’m) 23.8% 2.4% Fixed Rate Debt Ratio Average Debt Maturity 60% 5.3 years 7,912 Undrawn Committed Sustainable Facilities Finance HK$ 9.6b 46% of total debts and facilit
Slide 36: Indicative Cap Rates
Indicative Cap Rates 30 Jun 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% 36
Slide 37: Thank You
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Slide 38: 2022 Interim Results Analyst Briefing
2022 INTERIM RESULTS ANALYST BRIEFING Hysan Development Company Limited 22 August 2022
Hysan Development Company — H1 2022 Earnings Presentation on 6ix