New World Development Co. Ltd. · HKEX:17
New World Development — 1HFY2022 Earnings Presentation
30 slides from New World Development's earnings presentation, Feb 25, 2022
Slide 1: FY2022 Interim Presentation Press Conference
FY2022 INTERIM PRESENTATION PRESS CONFERENCE 25 February 2022 0
Slide 2: 1HFY2022 Financial Summary
SUMMARY FINANCIALS 1HFY2022 FINANCIAL SUMMARY: 穩中求勝 Committed and delivered underlying profit growth | Strong balance sheet with abundant capital Revenue Profit Attributable To Shareholders Underlying profit HKD 35,573M HKD 1,430M HKD 3,898M On par with 1HFY2021 +41% YoY +5% YoY Net gearing ratio Co
Slide 3: Outperform & On Track of FY2022 Key Full Year Guidance
FULL YEAR GUIDANCE OUTPERFORM & ON TRACK OF FY2022 KEY FULL YEAR GUIDANCE Fully on track for FY2022 full year guidance notwithstanding highly challenging macro environment Full year guidance Status Key financials Underlying profit High single digit growth Outperform Mainland China DP margin Improved
Slide 4: Property Development
PROPERTY — DEVELO! PMENT
Slide 5: Balanced Portfolio: Strong GBA Results to Boost Overall Performance
PROPERTY DEVELOPMENT BALANCED PORTFOLIO: STRONG GBA RESULTS TO BOOST OVERALL PERFORMANCE Mainland China result up 87% contributed by more GBA bookings of higher margin Revenue by Region Segment Results by Region 12,795 6,247 9,347 4,115 10,030 5,705 +87% 8,580 3,057 2,765 1,058 767 542 1HFY2021 1HFY
Slide 6: HK Contracted Sales Above Track for 3-Year Target
PROPERTY DEVELOPMENT - HK HK CONTRACTED SALES ABOVE TRACK FOR 3-YEAR TARGET Half-way through 3-year contracted sales target period and already achieved over 75% HK contracted sales (HKD bn) 3.9 46.3 16.1 75%+ 3–year target 60.0 achieved 26.3 1HFY2021 2HFY2021 1HFY2022 1HFY2022 2HFY2022 1HFY2023 2HFY
Slide 7: HK: Maintain Stable DP with >4M sqft Landbank
PROPERTY DEVELOPMENT - HK HK: MAINTAIN STABLE DP WITH >4M SQFT LANDBANK Quick-win strategy to acquire projects at attractive cost and ensure steady pipeline +375,000 sqft attributable GFA to landbank Acquisition of residential property in Kai Tak (6591) Acquisition of Kai Tak Mansion Tender price in
Slide 8: Riding on Northern Metropolis Development Strategy
PROPERTY DEVELOPMENT - HK RIDING ON NORTHERN METROPOLIS DEVELOPMENT STRATEGY (北部都會區) IN 2021 POLICY ADDRESS >90% of NWD total farmland area within Northern Metropolis radar “The Northern Metropolis will be the most important area in Hong Kong that facilitates our development integration with Shenzhe
Slide 9: Active Farmland Acquisition & Conversion
PROPERTY DEVELOPMENT - HK ACTIVE FARMLAND ACQUISITION & CONVERSION 1 2 Various Lots and Adjoining Government Land in D.D. 221, Wu Nga Lok Yeung, Fanling Sha Ha (沙下), Sai Kung, New Territories (粉嶺烏鴉落陽) GFA ~930,000 sqft Site area ~155,000 sqft NWD Shareholding 50% GFA No. of residential units ~927,00
Slide 10: Speed Up Farmland Conversion & Unlock Value
PROPERTY DEVELOPMENT - HK SPEED UP FARMLAND CONVERSION & UNLOCK VALUE Another 3 farmland sites submitted application to Town Planning Board for upzoning >4M sqft GFA WITHIN NORTHERN Lin Barn Tsuen 練板村 • Site area1: ~1,831,000 sqft METROPOLIS RADAR • Upzone plot ratio2: ~1.5 • No. of resi units: ~4,1
Slide 11: Mainland China: Resilient Despite Challenging Environment
PROPERTY DEVELOPMENT – MAINLAND CHINA MAINLAND CHINA: RESILIENT DESPITE CHALLENGING ENVIRONMENT Contracted sales on target | Maintaining strong presence in GBA Successful case studies in GBA Gross Contracted Sales (RMB M) The Glory of Legend (雲耀) in Guangzhou Sales achieved in first 20,200 day of pr
Slide 12: Proactive Quick-Win Acquisitions to Accelerate Return & Boost Margin
PROPERTY DEVELOPMENT – MAINLAND CHINA PROACTIVE QUICK-WIN ACQUISITIONS TO ACCELERATE RETURN & BOOST MARGIN Longgang District 188 Guangdong No.2 People’s Hospital Guangqiao Food Factory Project Industrial Zone Project Redevelopment Project Metro Project Metro Project Project Metro Shenzhen Shenzhen G
Slide 13: Hangzhou Comprehensive Development Project
PROPERTY DEVELOPMENT – MAINLAND CHINA HANGZHOU COMPREHENSIVE DEVELOPMENT PROJECT National benchmark for pioneering city-industry integration to build micro society Total GFA 450,000 sqm Opening in phases 2023-2026 Development properties Residential + Retail + Office ~240,000 sqft GFA Pre-sale FAST-T
Slide 14: Property Investment
ie : fiji ti ' = | P fay TH | in PROPERTY INVESTMENT
Slide 15: Strong Results Growth Driven by Superior K11 Performance
PROPERTY INVESTMENT STRONG RESULTS GROWTH DRIVEN BY SUPERIOR K11 PERFORMANCE Strong segment results growth due to higher operational efficiency Total revenue by Region Hong Kong YoY growth 2,315 2,518 K11 MUSEA ↑1.9x 1,440 1,497 +4% K11 Atelier King’s Road ↑40% K11 Art Mall ↑36% 875 1,021 +17% D Par
Slide 16: K11 Completely Outpaced the Market
PROPERTY INVESTMENT K11 COMPLETELY OUTPACED THE MARKET K11 maintained strong mall sales growth and high occupancy rate despite border closure 1HFY2022 K11 mall sales YoY growth % 1HFY2022 average occupancy rate of K11 vs market average malls in tier 1 cities1 K11 Retail market 39% 98% 92% 21% 8% 4%
Slide 17: K11 MUSEA Recorded Substantial Results Growth
PROPERTY INVESTMENT K11 MUSEA RECORDED SUBSTANTIAL RESULTS GROWTH DUE TO HIGHER OPERATIONAL EFFICIENCY AND STRONG MALL SALES 1HFY2022 financial performance Mall sales YoY growth Christmas YoY growth 100% Gross rental income ↑~20% Expenses ↓~30% Operating result ↑~150% Chinese New Year Operating marg
Slide 18: SKIES Unveils: K11 ATELIER Spearheads the Grand Opening
PROPERTY INVESTMENT 11 SKIES UNVEILS: K11 ATELIER SPEARHEADS THE GRAND OPENING 3 Grade-A office towers target to partially open in July 2022 Largest retail, dining & entertainment complex in HK (Total GFA 3.8M sqft) Opening in phases 2022-2025 K11 ATELIER 570,000 sqft Expected to be partially opened
Slide 19: Continuous Pipeline Growth of K11
PROPERTY INVESTMENT CONTINUOUS PIPELINE GROWTH OF K11 K11 completion schedule on track | 38 K11 projects by FY2026 with ~2.8M sqm in portfolio K11 Investment Properties 1 1 Status Site Type GFA (sqm) Status Site Type GFA (sqm) Hong Kong K11 34,000 Hong Kong Kai Tak Sports Center Retail 57,000 Hong K
Slide 20: Financial & Capital Management
FINANCIAL & CAPITAL MANAGEMENT 19
Slide 21: Non-Core Disposals on Track of Annual Target
FINANCIAL & CAPITAL MANAGEMENT NON-CORE DISPOSALS ON TRACK OF ANNUAL TARGET HKD3.8bn of disposals in 1HFY2022 to recycle capital for deploying to better returning business Major non-core assets disposed in 1HFY2022 Total Consideration (HKD bn) Xiamen Container Terminal Group in Mainland China 1.8 Me
Slide 22: Proactive Capital Management to Maintain Strong Financial Strength
FINANCIAL & CAPITAL MANAGEMENT PROACTIVE CAPITAL MANAGEMENT TO MAINTAIN STRONG FINANCIAL STRENGTH Lower financing cost | Active sustainable financing to support ESG 2.52% 41.3% HKD 103 bn Average financing cost Net gearing ratio Total capital resources 35.6% as at 30 Jun 2021 HKD 52 bn cash and bank
Slide 23: Stably & Proactively Returning Capital to Shareholders
FINANCIAL & CAPITAL MANAGEMENT STABLY & PROACTIVELY RETURNING CAPITAL TO SHAREHOLDERS Progressive and sustainable dividend since FY2015 Dividend payout (HKD/share) 2.04 2.04 2.06 1.92 1.84 1.76 1.68 Dividend yield2 6.5% 1.48 1.48 1.50 1.36 1.24 1.32 1.20 0.48 0.52 0.52 0.56 0.56 0.56 0.56 0.56 FY201
Slide 24: Major Shareholder Increasing Stake - Demonstrating Confidence in NWD
MAJOR SHAREHOLDER STAKE INCREASE MAJOR SHAREHOLDER INCREASING STAKE - DEMONSTRATING CONFIDENCE IN NWD Summary details of major shareholder purchases in Dec 2021 23 Dec 24 Dec 28 Dec 29 Dec Average price per 29.70 29.68 30.40 30.78 share (HKD) No. of shares bought 500,000 300,000 400,000 420,000 Tota
Slide 25: ESG: Creating Shared Value for All Stakeholders
ESG CREATING SHARED VALUE FOR ALL STAKEHOLDERS 24
Slide 26: Humanistic & Innovative Housing Solutions to Support the Younger Generation
CREATING SHARED VALUE HUMANISTIC & INNOVATIVE HOUSING SOLUTIONS TO SUPPORT THE YOUNGER GENERATION Sharing the greater good to citizens and resolving Hong Kong housing issues 新世界建好生活 (New World Build for Good) Case example Size 300 sqft HKD2.7 M Estimated price (50% - 60% discount of market price) Do
Slide 27: First Mover in Giving Back from the Business Sector
CREATING SHARED VALUE First Mover in Giving Back from the Business Sector Speedy Response to the Urgent Social Needs caused by COVID 2 First mover in donating rapid antigen test kits 300,000 kits to the underprivileged First hotel offered for 1 community isolation First to mobilise and donate - Pent
Slide 28: Pioneering Raft of COVID Relief Solutions for Society
CREATING SHARED VALUE Pioneering raft of COVID Relief Solutions for Society First to offer 10,000 oximeters for 4 5 COVID patients isolating at homes Fully protecting frontline 6 medical staff with 70,000 pieces Loan land to the govt. for the construction of personal protective clothing of Mobile Ca
Slide 29: Thank You
Mae rea sa New World Development Company Limited Aft THANK YOU
Slide 30: Disclaimer
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, recommendation or
New World Development Company — 1HFY2022 Earnings Presentation on 6ix