New World Development Co. Ltd. · HKEX:17
New World Development — FY2017 Earnings Presentation
35 slides from New World Development's earnings presentation, Sep 21, 2017
Slide 1: The Artisanal Living – FY2017 Annual Results
THE ARTISANAL LIVING FY2017 Annual Results 21 September 2017 mh New World Development Company Limited
Slide 2: Disclaimer
DISCLAIMER 2 DISCLAIMER - IMPORTANT NOTICE The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, inducement, invitation, rec
Slide 3: Corporate Structure
CORPORATE STRUCTURE 3 NEW WORLD DEVELOPMENT COMPANY LIMITED HK Stock code: 0017/ US ADR: NDVLY HK property development HK property investment Hotel Wholly-owned NEW WORLD CHINA LAND LIMITED subsidiary Mainland China property 61% NWS HOLDINGS LIMITED (HK stock code: 659) Infrastructure and service 72
Slide 4: Catalysts
CATALYSTS 4 Hong Kong property development • Robust execution in property sales: total HK$15.6 bn contracted sales achieved, surpassed FY2017 HK$10 bn target • Unique and ample saleable resources: approximatly 1,300 residential units Hong Kong property investment • Defensive portfolio with pioneered
Slide 5: Financials
FINANCIALS 5 Results summary (HK$ million) FY2017 FY2016 Revenues 56,628.8 59,570.0 Underlying Profit attributable to shareholders 7,675.7 8,666.3 profit HK$7,133.3m Up 26%* Financial position (HK$ million) As at 30 Jun 2017 As at 30 Jun 2016 Cash & bank balances 67,106.5 55,170.8 Net gearing 34.8%
Slide 6: Liquidity & Capital Resources
LIQUIDITY & CAPITAL RESOURCES 6 Source of borrowings Floating rate Fixed rate 69% 31% Maturity profile of borrowings within 1 year in 2nd year in 3rd-5th year after 5 years 13% 11% 59% 17% Currency profile of borrowings HKD USD & others RMB 68% 19% 13% *Based on gross debt as at 30 Jun 2017
Slide 7: Segment Performance
SEGMENT PERFORMANCE 7 (HK$ million) FY2017 FY2016 (1) Property development Revenue Segment results Revenue Segment results Hong Kong 8,538.1 2,277.1 12,941.9 2,978.6 Mainland China 17,429.9 5,229.7 15,586.0 4,393.2 25,968.0 7,506.8 28,527.9 7,371.8 (2) Property investment Hong Kong 1,576.2 1,169.5 1
Slide 8: Segment Performance - Breakdown
SEGMENT PERFORMANCE - BREAKDOWN 8 Segment results by category Property related segment results by geographic location Service 9% Hong Kong Infrastructure 39% 23% Property development 53% China 60% Others 1% Hotel Property operations investment -1% 13% Others Department 1% store 2%
Slide 9: Hong Kong Property Sales
HONG KONG PROPERTY SALES SKYPARK
Slide 10: Hong Kong Property Sales
HONG KONG PROPERTY SALES 10 Key projects booked in FY2017 HK attributable contracted sales (HK$ mn) SKYPARK 25,000 BOHEMIAN HOUSE THE PAVILIA HILL DOUBLE COVE SUMMIT 20,000 THE MASTERPIECE 55 CONDUIT ROAD 15,000 HK attributable contracted sales Attri. sales proceeds/ HK$ bn 2016.07.01 – 2016.12.31 4
Slide 11: Hong Kong Property Sales – Upcoming Launches
HONG KONG PROPERTY SALES 11 Upcoming major new launches No of units MOUNT PAVILIA (remaining units) 521 THE PARKVILLE (pre-sales consent obtained) 100 ARTISAN HOUSE 250 TONG YAN SAN TSUEN PROJECT* 123 PARK REACH* 63 Subtotal A 1,057 NWD inventory (as at 17 Sep 2017) 99 JV inventory (as at 17 Sep 201
Slide 12: Hong Kong Landbank
HONG KONG LANDBANK THE PAVILIA HILL
Slide 13: Hong Kong Landbank
HONG KONG LANDBANK 13 HK attributable landbank as at mid-Aug 2017 sq ft % By usage/ category - Development Property – Residential 4,822,525 45% - Development Property – Non residential 2,160,559 20% Sub-total 6,983,084 - Investment Property 3,701,372 35% Total 10,684,456 100% By area - HK Island 979
Slide 14: Landbank – New Acquisitions
HONG KONG LANDBANK – NEW ACQUISITIONS 14 New projects acquired in FY2017 Area Channels Key usage NWD% Attri. GFA/ sq ft New projects by key usage (GFA) Seymour Road project Mid Levels Old building Residential 35% 165,265 Tonkin Street project Cheung Sha Wan Old building Residential 100% 232,836 Wate
Slide 15: Landbank – Western Kowloon Portfolio
HONG KONG LANDBANK – WESTERN KOWLOON PORTFOLIO 15 The Western Kowloon Portfolio • GFA: 2.1 mn sq ft of 4 projects 4 • With a mix of office, retail and residential 2 • Committed to creating a "New World Ecosystem for Emerging Industries" 3 1 No Project Key usage NWD GFA/ sq ft 1 Tonkin Street project
Slide 16: Proven Track Record in Farmland Conversions
HONG KONG LANDBANK – PROVEN TRACK RECORD IN FARMLAND CONVERSIONS 16 Farmland conversion project Year of Area Total GFA/ sq ft NWD % in the last decade conversion Lung Tin Tsuen Phase III Yuen Long 2017 121,149 100% PARK REACH Yuen Long 2016 21,453 21% Tai Tong Road project II Yuen Long 2016 171,265
Slide 17: Proven Track Record in Old Building Acquisitions
HONG KONG LANDBANK – PROVEN TRACK RECORD IN OLD BUILDING ACQUISITIONS 17 Key old building redevelopment projects launched Area First launch Total GFA/ sq ft NWD % BOHEMIAN HOUSE Western District May-16 105,701 80% 55 CONDUIT ROAD Mid-levels Dec-15 87,780 30% EIGHT KWAI FONG Happy Valley Aug-15 65,15
Slide 18: Mainland China Property Sales
MAINLAND CHINA PROPERTY SALES NINGBO NEW WORLD PLAZA
Slide 19: Mainland China Property Sales
MAINLAND CHINA PROPERTY SALES 19 Key projects booked in FY2017 Gross margin Mainland China contracted sales (HK$ mn) 25,000 Guangzhou Central Park-view 77% Shenzhen New World Yi Shan Garden 62% Shenzhen New World Signature Hill 57% Guangzhou New World Park Paradise 54% 20,000 Shenyang New World Gard
Slide 20: Mainland China Property Sales – Saleable Resources
MAINLAND CHINA PROPERTY SALES 20 Development property saleable resources (excl Carpark) GFA sqm Residential 741,097 Non residential 528,229 Total 1,269,326 Development property saleable resources (excl Carpark) % of total Southern 30% Central 7% Eastern 7% Northern 41% North-eastern 15% Total 100% *
Slide 21: Faster Asset Turn – Development and Investment Property Completion
FASTER ASSET TURN – DEVELOPMENT AND INVESTMENT PROPERTY COMPLETION 21 DP excl DP incl Fiscal year % change % change DP + IP sq m % change carpark sq m carpark sq m FY2018 DP completion by region FY2016 595,686 728,935 - 865,143 - FY2017 819,033 +37.5% 920,053 +26.2% 1,281,099 +48.1% North- FY2018 1,
Slide 22: Mainland China Landbank
MAINLAND CHINA LANDBANK BEIJING NEW WORLD – LI ZUN
Slide 23: Mainland China Landbank
MAINLAND CHINA LANDBANK 23 Total GFA sq m Total GFA sq m Landbank as at 30 Jun 2017 % (incl carpark) (excl carpark) Southern 3,204,925 2,609,949 40.0% (Guangzhou, Foshan, Shenzhen) Central 877,399 624,944 9.6% (Wuhan) Eastern 792,269 521,419 8.0% (Ningbo) Northern 1,114,461 653,872 10.0% (Beijing, L
Slide 24: Mainland China Land Acquisition
MAINLAND CHINA LAND ACQUISITION 24 New projects acquired Key usage Total GFA/ sq m NWD SHENZHEN PRINCE BAY - ARTIST RENDERING Shenzhen Qianhai project Office 176,300 30% Shenzhen Prince Bay project – Parcel A Commercial 207,556 51% Commercial/ office/ Shenzhen Prince Bay project – Parcel B 159,680 4
Slide 25: HK Investment Property
HK INVESTMENT PROPERTY VICTORIA DOCKSIDE
Slide 26: Investment Properties & Others
HONG KONG INVESTMENT PROPERTIES & OTHERS 26 Office Occupancy New World Tower, Central 99% Manning House, Central 97% Mall Occupancy HK K11, TST 99% D‧PARK,Tsuen Wan 96% Pearl City, Causeway Bay 100% Telford Plaza, Kowloon Bay 100% POPCORN II, Tseung Kwan O 100% HK gross rental income up 4.2% yoy Off
Slide 27: Investment Properties – Victoria Dockside
HONG KONG INVESTMENT PROPERTIES – VICTORIA DOCKSIDE 27 VICTORIA DOCKSIDE • Total GFA: 3 mn sq ft • Current status: Project progress as scheduled • Focus: New landmark in Hong Kong
Slide 28: Investment Properties – Victoria Dockside
HONG KONG INVESTMENT PROPERTIES – VICTORIA DOCKSIDE 28 VICTORIA DOCKSIDE • The mixed-use development will offer Grade A office, an ultra-luxury Rosewood Hotel, Rosewood Residences, and premier art, design and leisure experiences • Set to fully open in 2019 • The high tower on the right hand side, co
Slide 29: Investment Properties – Victoria Dockside
HONG KONG INVESTMENT PROPERTIES – VICTORIA DOCKSIDE 29 The high tower • Total floors: 62 (above ground, excl 2 refuge & 2 M&E floors) • Office portion: L7-21 (15 floors/ area: 384,132 sq ft) • Key tenants: Mizuho Group, Fubon Group • Hotel guestroom: L24-40 (398 guestrooms) • Rosewood Hong Kong • Lu
Slide 30: Mainland China Investment Property
MAINLAND CHINA INVESTMENT PROPERTY SHANGHAI K11
Slide 31: Mainland China Investment Properties & Others
MAINLAND CHINA INVESTMENT PROPERTIES & OTHERS 31 Project Usage Occupancy Wuhan New World International Trade Tower Office 81% Shanghai Hong Kong New World Tower Office 82% Shanghai K11 Retail 98% Beijing New World Centre Retail 100% Tianjin New World Plaza Retail 85% Serviced Guangzhou Central Park-
Slide 32: Mainland China Investment Properties - K11
MAINLAND CHINA INVESTMENT PROPERTIES - K11 32 SHANGHAI K11 – Exhibition of Claude Monet Shanghai K11 - Sustainable “Art x Commerce” K11 business model, creating a museum retail concepts, office and residences in Greater China - 2017: Joins Forces with Hero Entertainment, Asia’s Leading Operator of M
Slide 33: Hotel Operations
HOTEL OPERATIONS RENAISSANCE HARBOURVIEW – Dynasty
Slide 34: Hotel Operations
HOTEL OPERATIONS 34 Location No of hotels No of rooms Hong Kong 6 3,484 Mainland China 8 2,830 South East Asia 3 1,453 Total 17 7,767 Hotels/ FY2017 Location Room Occupancy ADR Hong Kong (HK$) Grand Hyatt HK Wanchai 545 76% 3,100 Renaissance Harbourview Wanchai 861 84% 1,900 Hyatt Regency TST TST 38
Slide 35: The Artisanal Movement
The Artisanal Movement, branding personality of the New World Group, is a journey of expanding one’s imagination, not only limited to design and aesthetics, but also amassing a modern living culture through our persistence in delivering bespoke craftsmanship manifested by originality.
New World Development Company — FY2017 Earnings Presentation on 6ix