Fse Lifestyle Services Limited · HKEX:331
Fse Lifestyle Services — FY2023 Earnings Presentation
33 slides from Fse Lifestyle Services's earnings presentation, September 2023
Slide 1: FY2023 Annual Results Analyst Presentation
FY2023 ANNUAL RESULTS Year Ended 30 June 2023 ANALYST PRESENTATION Sep 2023 FSE Lifestyle Services Limited |1
Slide 2: Business Segments
Business Segments FSE Lifestyle Services Limited (Stock code: 331) 100% 100% 100% Property & Facility City Essential E&M Management Services Services Services (Cleaning (Technical Support & Pest & Maintenance) (E&M Engineering (Property & Facility Control) Services) Management Services, and Sales &
Slide 3: Established Market Position
Established Market Position Property & Facility Management ➢ Property Management (Note 1) 1 2 1 City Essential ➢ Environmental Hygiene 2 ➢ Security Guarding 2 ➢ Insurance Brokerage (Note 2) 1 E&M ➢ E&M (Note 3) 2 Note 1 : Ranking among independent players excluding developer’s management companies:
Slide 4: Reported Earnings
Reported Earnings $503M $523M 4% FY2022 FY2023 Total dividend per share $0.458* and a dividend payout ratio 40% * Final : $0.213 per share Interim : $0.245 per share FSE Lifestyle Services Limited |4
Slide 5: Core Earnings
Core Earnings $415M $446M 8% FY2022 FY2023 Government grants $340M Excluding government grants $88M Excluding government grants $77M Non-recurring items: Loss related to laundry business disposal ($46M) One-off professional fees for acquisition ($14M) FSE Lifestyle Services Limited |5
Slide 6: Group turnover
Group turnover $6,967M $7,767M 11% FY2022 FY2023 FSE Lifestyle Services Limited |6
Slide 7: 20% CAGR EPS FY2017-23 (Reported)
20% CAGR EPS FY2017-23 (Reported) (in HK$) 1.60 1.29 1.20 1.10 1.14 0.17 0.20 0.80 0.76 0.68 0.46 0.43 0.53 0.55 0.11 0.39 0.13 0.16 0.17 0.40 0.21 0.21 0.30 0.18 0.18 0.47 0.51 0.18 0.19 0.25 0.23 0.18 - FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Acquisition of Acquisition of Acquisition of W
Slide 8: Higher Return to Shareholders
Higher Return to Shareholders Total dividend per share since IPO $2.36, representing 86% of IPO price 8.8 8.3 7.9 7.4 7.4 (in HK$) 7.0 0.5 6.2 0.458 5.9 0.45 0.45 0.4 0.161 0.213 0.241 0.3 0.272 0.211 0.22 0.2 0.144 0.144 0.155 0.119 0.133 0.289 0.081 0.245 0.1 0.094 0.209 0.128 0.101 0.074 0.078 0.
Slide 9: FSE Lifestyle outperformed HSI and HSPSMI
FSE Lifestyle outperformed HSI (Hang Seng Index) and HSPSMI (Hang Seng Property Service and Management Index) 21,860 19,781 17% 18,916 (恒生指數) 18,057 4,600 17,223 14,687 3,296 52% 2,510 2,444 2,219 (恒生物業服務及管理指數) 1,777 $6.03 $5.85 14% $5.44 $5.15 $5.00 (豐盛生活服務) $4.51 30 Jun 22 30 Sep 22 31 Oct 22 31 D
Slide 10: 13% CAGR Turnover FY2017-23 (Reported)
13% CAGR Turnover FY2017-23 (Reported) (HK$’M) 8,000 7,767 6,967 7,000 6,453 6,000 774 4,055 4,927 4,931 4,882 3,616 5,000 568 1,171 2,920 4,000 3,700 2,639 2,172 3,000 1,931 1,993 2,000 3,351 3,712 2,759 1,000 2,292 2,142 1,769 1,763 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Acquisition of
Slide 11: 20% CAGR Profit FY2017-23 (Reported)
20% CAGR Profit FY2017-23 (Reported) (HK$’M) 600 587 523 500 77 88 340 400 310 212 300 200 248 48 237 73 200 57 78 174 134 93 86 92 82 234 100 215 87 114 103 87 82 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Acquisition of Acquisition of Acquisition of Waihong & NCL Urban & Kiu Lok Nova, HKIL
Slide 12: Segment AOP – FY2023
Segment AOP* – FY2023 Non-E&M Recurring Businesses remain solid, contribute 66% AOP and growing $216M $138M Property & Facility Management City Essential 26% 40% E&M 34% $186M * Based on Net Profit including government grants but excluding unallocated corporate expenses FSE Lifestyle Services Limite
Slide 13: Property & Facility Management
Property & Facility Management Property & Facility Management – Urban Property Management – IPM Property Management and Sales & Leasing – Kiu Lok Over 300 property and facility management contracts Over 300 property and facility management contracts Government Property One Beacon Hill K11 Masterpiec
Slide 14: Property & Facility Management
Property & Facility Management Property & Facility Management – Urban Property Management – IPM Property Management and Sales & Leasing – Kiu Lok Turnover Profit (HK$M) (HK$M) 750 150 140 650 130 120 550 110 100 450 90 80 696 709 137 138 350 70 60 250 50 40 150 30 20 50 10 FY2022 FY2023 FY2022 FY202
Slide 15: City Essential Services: Cleaning & Pest Control
City Essential Services (i) Cleaning & Pest Control - Waihong Over 310 cleaning service contracts Express Rail Link – Hong Kong Airport Hong Kong Disneyland K11 MUSEA West Kowloon Station FSE Lifestyle Services Limited | 15
Slide 16: City Essential Services: Cleaning & Pest Control
City Essential Services (i) Cleaning & Pest Control - Waihong Turnover (HK$’M) 2,000 1,800 1,600 1,400 1,200 Leisure and Cultural Services Department 1,000 1,731 800 1,409 600 400 200 LINK Properties FY2022 FY2023 FSE Lifestyle Services Limited | 16
Slide 17: City Essential Services: Technical Support & Maintenance
City Essential Services (ii) Technical Support & Maintenance - Far East/Turning Over 2,500 technical support and maintenance service contracts Lee Garden Link’s shopping malls Four Seasons, Macao EMSD FSE Lifestyle Services Limited | 17
Slide 18: City Essential Services: Technical Support & Maintenance
City Essential Services (ii) Technical Support & Maintenance - Far East/Turning Turnover (HK$’M) 1,100 1,000 900 800 EMSD 700 600 963 500 834 400 300 200 100 FY2022 FY2023 HKCEC FSE Lifestyle Services Limited | 18
Slide 19: City Essential Services: Security Guarding & Event Services
City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event Over 600 security guarding, systems & technologies and event services contracts MTR Properties New World Properties Kai Tak Sports Park FSE Related Projects FSE Lifestyle Services Limited | 19
Slide 20: City Essential Services: Security Guarding & Event Services
City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event HKJC Racecourses HKCEC AsiaWorld-Expo Music Concerts Hang Lung Properties Event Organisers FSE Lifestyle Services Limited | 20
Slide 21: City Essential Services: Security Guarding & Event Services
City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event Turnover (HK$’M) 700 Stable 650 600 550 AsiaWorld-Expo 500 636 633 450 400 350 HKJC Racecourses 300 FY2022 FY2023 FSE Lifestyle Services Limited | 21
Slide 22: City Essential Services: Insurance Solutions
City Essential Services (iv) Insurance Solutions - NOVA Over 3,700 insurance solutions contracts Expansion Project of the Veolia – Kai Tak Sports Park Hung Fook Tong Legislative Council Complex NENT Landfill Extension FSE Lifestyle Services Limited | 22
Slide 23: City Essential Services: Insurance Solutions
City Essential Services (iv) Insurance Solutions - NOVA Turnover (HK$’M) 120 110 District Court at Caroline Hill Road 100 90 80 70 110 100 60 50 40 30 FY2022 FY2023 Kai Tak New Acute Hospital Site A FSE Lifestyle Services Limited | 23
Slide 24: City Essential Services: Environmental Solutions
City Essential Services (v) Environmental Solutions – Environment/Smart/Green Over 1,000 environmental solutions contracts Kai Tak ADCS Sea Water Kai Tak Sports Park Electro-chlorination System – Water Feature System – Immigration Headquarters, Diocesan Girl’s School – Environment Solutions Environm
Slide 25: City Essential Services: Environmental Solutions
City Essential Services (v) Environmental Solutions – Environment/Smart/Green Turnover (HK$’M) 360 340 320 300 Advance Manufacturing 280 Centre, TKO – 260 Environment Solutions 240 220 200 180 329 160 140 274 120 100 80 60 40 20 11 SKIES – FY2022 FY2023 Smart Solutions FSE Lifestyle Services Limited
Slide 26: City Essential Services Segment Highlight
City Essential Services Segment Highlight Turnover Profit (HK$’M) (HK$’M) 4,000 250 3,500 200 3,000 2,500 150 3,767 2,000 216 3,253 100 202 1,500 50 1,000 500 0 FY2022 FY2023 FY2022 FY2023 FSE Lifestyle Services Limited | 26
Slide 27: E&M Services
E&M Services E&M Engineering Services - FSE Engineering/Majestic/Young’s Over 100 E&M services contracts Expansion of Immigration Headquarters, District Court at LegCoTKO Complex Caroline Hill Road 杭州恒隆廣場 寧波新世界廣場 FSE Lifestyle Services Limited | 27
Slide 28: E&M Services Segment Highlight
E&M Services Segment Highlight Turnover Profit (HK$’M) (HK$’M) 3,500 210 185 3,000 160 2,500 135 2,000 110 3,292 186 3,018 173 85 1,500 60 1,000 35 500 10 FY2022 FY2023 FY2022 FY2023 FSE Lifestyle Services Limited | 28
Slide 29: Healthy Remaining Works
Healthy Remaining Works - With promising organic growth ↑22% ($’M) 12,000 10,000 8,000 ↑40% ↑15% 13,016 6,000 10,662 4,000 ↓17% 6,196 5,857 5,085 2,000 4,415 1,162 963 0 Jun 22 &Jun Property 23 facility Jun 22 City Jun 23 Essential Jun 22 Jun 23 E&M TotalJun 23 Jun 22 management Property & facility
Slide 30: Strong Capital Structure
Strong Capital Structure - With financial flexibility and funding certainty As at 30 June 2023 Banking Facilities Cash and Banks Debt Maturity Profile $1,052M $721M, 96% (in HK$M) Dec 23 18 Total Total $2,650M $752M Dec 24 264 $12M, 1% $19M, 3% Zero net gearing ratio $1,598M Unutilised HKD Utilised
Slide 31: FSE Ecosystem (Multi Service Lines)
FSE Ecosystem (Multi Service Lines) - With strong cross-selling to drive growth Strong Cross- selling Synergies Organic Growth through FSE ECOSYSTEM Diversified High Income Quality Streams FSE Lifestyle Services Limited | 31
Slide 32: Why Invest In FSE Lifestyle?
Why Invest In FSE Lifestyle? - Continuous return to shareholders with quality development Strong Financial Growth and Contract Portfolio - Core Earnings ↑35% in FY2022 ; ↑8% in FY2023 - New contract award $8.7b ↑55% - Strong order book $23b ↑24% - Remaining works $13b ↑22% High Dividend Yield, Consi
Slide 33: Q&A
Q&A FSE Lifestyle Services Limited | 33
FSE Lifestyle Services — FY2023 Earnings Presentation on 6ix