Far East Consortium International Limited · HKEX:35
Far East Consortium International — FY2024 Earnings Presentation
49 slides from Far East Consortium International's earnings presentation, June 2024
Slide 1: FY2024 Annual Results: Navigating on Solid Foundation
FY2024 Annual Results June 2024 Navigating on Solid Foundation 行穩致遠
Slide 2: Disclaimer
Disclaimer This document has been prepared by Far East Consortium International Limited (the “Company”) solely for information purposes. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to purchase or subscrib
Slide 3: Table of Contents
Table of Contents 1. FY2024 Annual Results Summary 2. Review of Operations 3. Prospects 4. Appendices 3
Slide 4: 1. FY2024 Annual Result Summary
1. FY2024 Annual Result Summary Aspen at Consort Place, London 4
Slide 5: Key Theme of FY2024
Key Theme of FY2024 Strong Growth in Revenue Despite a Volatile Market • Revenue increased 57.5% YoY to HK$10.2 bn, Adjusted cash profit increased by 35.5% YoY to HK$780 mn • Property development: Revenue for property development was HK$6.8 bn, an increase of 91.6% YoY Total cumulative attr. presale
Slide 6: Key Theme of FY2024 (cont'd)
Key Theme of FY2024 (cont’d) BC Invest Mortgage Business Continued to Grow • Total AUM maintained at AUD5.4 bn as at 31 Mar 2024 • Successfully issued three RMBS in FY2024 totaling AUD1.5 bn in aggregate • Net interest margin was 1.19%, a slight decrease as compare with FY2023, due to an increase in
Slide 7: Top Line Growth but Profitability Affected by Several Factors
Top Line Growth but Profitability Affected by Several Factors • One-off expenses such as Palasino listing expenses and hotel pre-opening expenses • One-off compensation income of HK$475 mn in FY2023 was not repeated in FY2024 • Interest rate rises, and higher selling and marketing expenses which mai
Slide 8: Strong Property Development Pipeline in the Coming Years
Strong Property Development Pipeline in the Coming Years • Over HK$65.2 bn of development pipeline with cumulative attributable presales and unbooked contracted sales at HK$11.5 bn • Projects expected to complete in FY2025 with expected attr. GDV approx. HK$9.2 bn, of which approx. HK$6.0 bn was pre
Slide 9: Gross Profit Margin Improved
Gross Profit Margin Improved • Great improvement in property development profit margin due to more property sales in Australia with higher profit margin • Profit margin of recurring business remained steady FY2024 FY2023 Gross profit Gross profit Gross profit Gross profit Revenue Revenue (after depr
Slide 10: Impact of Foreign Exchange Rates
Impact of Foreign Exchange Rates • Movement in foreign currencies impacted balance sheet position • Assuming exchange rates remained constant, net asset value would have been HK$452 mn higher as at 31 Mar 2024; while profit attributable to shareholders would have been HK$47.5 mn higher for FY2024 Ra
Slide 11: Managing our Balance Sheet
Managing our Balance Sheet • Disposals of non-core assets and developments moving to completion will strengthen liquidity and balance sheet position • Making efforts to reduce gearing as interest rates remain elevated HK$ mn As at 31.3.2024 As at 31.3.2023 Due within 1 year(1) 12,674 21,389 Due 1-2
Slide 12: Short Term Debts Analysis and Liquidity Management
Short Term Debts Analysis and Liquidity Management • Continue our monetisation strategy and aim to reduce debt level • Completion of major projects and disposal of non-core assets which further reduce debt level As at 31.3.2024 As at 31.3.2023 Bank loans and notes due within 1 year Status HK$ mn HK$
Slide 13: Reduce Debt Level and Improve Gearing
Reduce Debt Level and Improve Gearing • Adjusted net gearing ratio stood at a healthy level of 68.1% as at 31 Mar 2024 as compared with 73.8% as at 31 Mar 2023 Focusing on Monetising and Completing the Existing Development • Continued active sell-down of inventory of HK$6.1 bn (Mount Arcadia and Man
Slide 14: Ample Access to Liquidity
Ample Access to Liquidity • Available existing liquidity of approximately HK$10 bn (cash position and undrawn facilities) far exceeds the capex of approximately HK$1 bn • Total cumulative attr. presales and unbooked contracted sales of approx. HK$11.5 bn provides visibility on future cash inflow str
Slide 15: 2. Review of Operations: Property Development
2. Review of Operations Property Development Hyll on Holland, Singapore 15
Slide 16: Presales Offers Good Cash Flow Visibility
Presales Offers Good Cash Flow Visibility • Over HK$65.2 bn of development pipeline • Total cumulative attr. presales and unbooked contracted sales reached HK$11.5 bn Notes: As at 31.03.2024 Location Cumulative presales Expected attr. SFA(1) Expected attr. GDV(2) Expected Cumulative presale Projects
Slide 17: Recent Completion – West Side Place (Towers 3 & 4), Melbourne
Recent Completion – West Side Place (Towers 3 & 4), Melbourne A New Height of Cosmopolitan Living These two towers make up Stage 2 of West Side Place, a major mixed-use development located next to our existing Upper West Side development. It is proudly positioned in Melbourne’s CBD grid and in immed
Slide 18: Upcoming Completion in FY2025 – Perth Hub, Perth
Upcoming Completion in FY2025 – Perth Hub, Perth Embrace the Epitome of Connected, Distinctive, and Exciting Urban Living Create an inner-city home in a vibrant destination that links exclusive apartment living with entertainment, restaurants, bars, cafes, shops, art, culture, recreation, education
Slide 19: Upcoming Completion in FY2025 – Queen's Wharf Residences (Tower 4), Brisbane
Upcoming Completion in FY2025 – Queen’s Wharf Residences (Tower 4), Brisbane A Landmark that Further Reinforces Brisbane’s Status as a Truly Global City With support from the Brisbane government, Queen’s Wharf Residences is a once-in-a-generation renewal project across Australia. The project occupie
Slide 20: Upcoming Completion in FY2025 – Aspen at Consort Place, London
Upcoming Completion in FY2025 – Aspen at Consort Place, London An Artistic Building Rooted in History Located in the Canary Wharf area in London, Cosort Place is a mixed-use development. The availability of local transport, underground, buses and Crossrail (starting 2020), make Consort Place easily
Slide 21: Upcoming Completion in FY2025 – Victoria Riverside, Manchester
Upcoming Completion in FY2025 – Victoria Riverside, Manchester New homes in the heart of Manchester Set just a stone’s throw from Manchester City Centre, Victoria Riverside is home to 634 new apartments and townhouses. Along Dantzic street will see new life breathed into the railway arches providing
Slide 22: Recent Launch – Redbank Riverside - Falcon, Manchester
Recent Launch – Redbank Riverside - Falcon, Manchester Falcon’s Rise Marks a New Era for Red Bank Living The 20-storey, brick exterior tower is located on Dantzic Street. The new open plan homes, including a number of apartments with private terraces, will feature generous floor to ceiling windows p
Slide 23: Upcoming Completion in FY2025 – Hyll on Holland, Singapore
Upcoming Completion in FY2025 – Hyll on Holland, Singapore Luxury Apartments, boasting Excellent Geographical Location Close to lifestyle destinations and recreational enclaves known to locals and expats, such as Orchard Road, Holland Village and Dempsey Hill. Apartments Expected attr. SFA 319 194,0
Slide 24: Upcoming Launch in FY2025 – The Pavilia Forest, Hong Kong
Upcoming Launch in FY2025 – The Pavilia Forest, Hong Kong Significant New Development Along the Waterfront The development is at the heart of the Hong Kong, providing residents with access to upgraded infrastructure. Its location offers a tranquil sea view for rest and relaxation away from the hustl
Slide 25: Recent Disposal – Kai Tak Development, Hong Kong
Recent Disposal – Kai Tak Development, Hong Kong The HK Government’s most significant infrastructure investment in recent decades Landmark development in the new Kai Tak Sports Park Precinct in Hong Kong. Sold to CLP for HK$3.38 bn. Over HK$2.7 bn receivable upon completion. Located at Shing Kai Roa
Slide 26: 2. Review of Operations: Hotel Operations & Management
2. Review of Operations Hotel Operations & Management Dorsett Kai Tak, Hong Kong 26
Slide 27: Strong Performance in Revenue
Strong Performance in Revenue • Reopening of border supported hotel performance. Hong Kong hotels have undergone adjustment from “quarantine stay” to “normal” • Tourism boosts revenue • Openings of Ritz-Carlton Melbourne and Dorsett Melbourne contribute to the revenue. Occupancy rate has been improv
Slide 28: Upcoming Hotel Completion – Dorsett Kai Tak, Hong Kong
Upcoming Hotel Completion – Dorsett Kai Tak, Hong Kong Marina Escapade in a New Urban Hub • Boasting spectacular views of Victoria Harbour, the Dorsett flagship hotel sits adjacent to Kai Tak Sports Park, located 15-minute away from the central business district • Inspired by the tranquil elegance e
Slide 29: Upcoming Hotel Completion – Dao by Dorsett North London
Upcoming Hotel Completion – Dao by Dorsett North London A Unique Combination of Contemporary and Period Furnishings • The second Dao by Dorsett in the UK • Located at the heart of Crouch End, adjacent to shops and restaurants on a busy high street, while having good transport link to central London
Slide 30: Upcoming Hotel Completion – Dorsett Alpha Square Canary Wharf, London
Upcoming Hotel Completion – Dorsett Alpha Square Canary Wharf, London London’s most sought-after purpose-built hotel • Located in Canary Wharf, London. This area, situated on the Isle of Dogs, holds great strategic importance as it contributes to London's status as a global hub for financial, media,
Slide 31: Recent Opening – Ritz-Carlton Melbourne
Recent Opening – Ritz-Carlton Melbourne An Expression of Timeless Luxury • Opened in 23 March 2023 • Occupies the top 18 floors of West Side Place (Tower 1) • The tallest hotel in Australia and the Southern Hemisphere • Offering stunning and expansive views over the Docklands bay and cityscape • Sur
Slide 32: Recent Opening – Dorsett Melbourne
Recent Opening – Dorsett Melbourne Hotel of choice for business and leisure travelers • Opened in 18 April 2023 • Located within the West Side Place development precinct of the Melbourne CBD and occupying levels 3 to 8 of West Side Place (Tower 3) • Surrounded by over 3,000 sq.m. of retail space and
Slide 33: Pipeline Hotels to Add to Growth Momentum
Pipeline Hotels to Add to Growth Momentum • 8 new hotels under construction in Australia, the UK and Hong Kong with 2,000 rooms in the next 2 years As at 31.3.2024 As at 31.3.2026 • Ritz-Carlton Melbourne commenced operations in March 2023 8,085 10,085 and Dorsett Melbourne opened in April 2023, add
Slide 34: 2. Review of Operations: Car Park Operations
2. Review of Operations Car Park Operations Care Park, Victoria 34
Slide 35: Strategic Car Park Divestments
Strategic Car Park Divestments • Revenue slightly decreased 3.0% YoY to approx. HK$732 mn 31.3.2024 31.3.2023 primarily due to the unfavourable exchange movement. Despite No. of No. of No. of No. of this, the core business saw a steady improvement Car Park Bays Car Park Bays • Continue to divest som
Slide 36: 2. Review of Operations: Gaming Operations
2. Review of Operations Gaming Operations PALASINO Furth im Wald, Czech Republic 36
Slide 37: Palasino – Successfully Listed on the Main Board of HKEX
Palasino – Successfully Listed on the Main Board of HKEX Steady Growth in Business • Revenue reached HK$402 mn(1), recorded a year-on-year increase of 3.1% • Successfully listed on the Main Board of HKEX on 26 Mar, 2024 • Currently holds a controlling stake of 72.07% in Palasino following the partia
Slide 38: Queen's Wharf Brisbane Progressing to Commencement of Operation
Queen’s Wharf Brisbane Progressing to Commencement of Operation Casino Licence Terms • 99 years with a 25-year casino exclusivity period within 60 kilometers from the Brisbane CBD • 2,500 slots & unlimited gaming tables (including electronic derivations) A World-Class Integrated Resort • Expecting o
Slide 39: 2. Review of Operations: Other Businesses
2.Review of Operations Other Businesses Hornsey Town Hall, London 39
Slide 40: BC Invest – Another Year of Strong Growth
BC Invest – Another Year of Strong Growth Overview Catalysts for FY2025 • The Group holds approximately 53% stake • Organic growth remains very strong, despite the interest • AUM reached AUD5.4 bn rate environment • Issued three RMBS, raised AUD1.5 bn in aggregate in • Normalisation of lending marke
Slide 41: 3. Prospects
3. Prospects The Star Residences, Gold Coast 41
Slide 42: Outlook
Outlook Balance Sheet Management • Continue to reduce debt levels and finance costs amidst the high interest rate environment • Focus on monetising and completing the existing developments and earmarked to sell non-core assets • New launch and opening of property development projects Property Develo
Slide 43: Key Sustainability Highlights
Key Sustainability Highlights • Developed a roadmap to achieve net-zero • Donated HK$86,000 to support United emissions across our value chain by 2050 Overseas Bank Ink Art Award in fostering long- • Approximately 350kg of red envelopes term appreciation for Southeast Asian Art collected and recycle
Slide 44: Enhance ESG Efforts to Create Long-Term Value
Enhance ESG Efforts to Create Long-Term Value Strengthen Governance to Improve ESG Performance Formed key internal committees within the ESG Working Group to support the ESG Steering Committee Create strategic ESG Direction for the Group Developed KPI’s with Executing the sustainability Refining Gro
Slide 45: Reputable Awards for IR and ESG Work
Reputable Awards for IR and ESG Work FY2024 FinanceAsia’s Best Companies Poll 2023 HKQAA Hong Kong Green and Sustainable Finance • Best CEO in Hong Kong – Mr. David Chiu, Chairman and Chief Executive Officer Awards 2023 • Best Real Estate Company in Hong Kong • Outstanding Award for Green and Sustai
Slide 46: Thank You
Thank You Questions & Answers For more information, please contact: Investor Relations Department: ir@fecil.com.hk Or visit the Company’s website: www.fecil.com.hk FEC Official WeChat 46
Slide 47: 4. Appendices
4. Appendices Mount Arcadia, Hong Kong 47
Slide 48: Significant Hidden Value in FEC's Hotel Portfolio
Significant Hidden Value in FEC’s Hotel Portfolio Capital Value @ Revaluation City / Country Description Rooms 31.03.2024 Surplus (HK$ mn) (HK$ mn) Hotels in operation Hong Kong 1 Dorsett Wanchai Hong Kong Amid Wanchai and Causeway Bay 454 3,910 3,698 Note: 2 Cosmo Hotel Hong Kong In Hong Kong's pri
Slide 49: Details of Major Investment Properties
Details of Major Investment Properties Total GFA Total GFA Current Investment Properties (sq. ft.) Pipeline Investment Properties (sq. ft.) FEC Building, Central, Hong Kong 3,000 Queen's Wharf Brisbane (1), Brisbane 198,200 FEC Building, Nathan Road, Hong Kong 38,700 Kai Tak, Hong Kong 16,400 Far Ea
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