Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — H1 FY2004 Earnings Presentation
29 slides from Ctf Services's earnings presentation, March 2004
Slide 1: Interim Results Presentation
Interim Results Presentation 2003/04
Slide 2: Contents
Contents Î Corporate Structure Î Financial Highlights @ NWSH Group Results @ NWS Service Management @ NWS Infrastructure Management @ NWS Ports Management Î Operational Review Î Outlook Î New Investments Î Corporate Strategies 1
Slide 3: Corporate Structure
Corporate Structure Service Infrastructure Ports Management Management Management Roads & Bridges Container Facilities handling Logistics & Contracting Energy Warehousing Water treatment Transport & Waste management Financial Environmental 2
Slide 4: Financial Highlights
Financial Highlights
Slide 5: NWSH Group Results
NWSH Group Results For the six months ended 31 December (Restated) 2003 2002 Change (HK$M) (HK$M) +/ (-)% Turnover 6,542.5 6.1 +1,072 times AOP 996.6 229.6 +334% Profit attributable to shareholders 814.2 185.8 +338% Earnings per ordinary share # HK$0.46 HK$0.85 (46%) Dividend per ordinary share # HK
Slide 6: AOP Mix
AOP Mix (for the six months ended 31 December 2003) Ports HK$203M 20% Service HK$381M 38% Infrastructure HK$413M 42% Total: HK$997M 5
Slide 7: EBITDA
EBITDA (for the six months ended 31 December 2003) Infrastructure HK$567M 39% Service HK$637M 44% Ports HK$240M 17% Total: HK$1,444 M (Excluding corporate expenses and consolidation adjustments) 6
Slide 8: Encouraging Progress in Debt Reduction
Encouraging Progress in Debt Reduction Net Debt (HK$ billion) 8.7 7.8 7.6 7.5 6.9 6.8 5.6 4.9 (projected) Feb 03 Mar 03 Apr 03 May 03 Jun 03 Sept 03 Mar 04 Jun 04 ÎCash on hand HK$2.5 billion (as of 9 Mar 2004) 7
Slide 9: AOP - Service
AOP - Service (HK$M) +3% 368 381 Facilities 400 Contracting Transport 200 Financial, Environmental & others Total AOP 0 Pro-forma 2002 2003 For the six months ended 31 December 8
Slide 10: AOP - Service
AOP - Service For the six months ended 31 December Pro-forma 2003 2002 Change (HK$M) (HK$M) +/ (-)% Facilities 188.9 157.5 20% Contracting 119.4 134.8 (11%) Transport 36.0 53.4 (33%) Financial, Environmental & Others 36.3 22.5 61% TOTAL 380.6 368.2 3% 9
Slide 11: AOP - Infrastructure
AOP - Infrastructure (HK$M) 500 Energy, Water +20% 413 treatment & Waste management 400 345 Roads & Bridges 300 200 Total AOP 100 Pro-forma 2002 2003 For the six months ended 31 December 10
Slide 12: AOP - Infrastructure
AOP - Infrastructure For the six months ended 31 December Pro-forma 2003 2002 Change (HK$M) (HK$M) +/ (-)% Energy, Water treatment & Waste management 262.6 203.2 29% Roads & Bridges 150.8 142.1 6% TOTAL 413.4 345.3 20% 11
Slide 13: AOP - Ports
AOP - Ports (HK$M) 230 -12% 250 203 Container handling 200 150 Logistics & Warehousing 100 50 Total AOP 0 2002 2003 12 For the six months ended 31 December
Slide 14: AOP - Ports
AOP - Ports For the six months ended 31 December 2003 2002 Change (HK$M) (HK$M) +/ (-)% Container handling 104.4 131.4 (21%) Logistics & warehousing 98.2 98.2 - TOTAL 202.6 229.6 (12%) 13
Slide 15: Operational Review
Operational Review
Slide 16: Operational Review - Service
Operational Review - Service Facilities Contracting Î HKCEC impressive growth Î HK property market continues to Î Property Management, Cleaning, be slow ⇒ margin is thin Security & Guarding deliver Î Expands into Mainland China solid results market Î Free Duty shops 15
Slide 17: Operational Review - Service
Operational Review - Service Financial, Environmental Transport and Others Î Bus patronage returns to pre- Î Tricor & Tai Fook Securities SARS level provide steady contribution Î Inner harbour & Macau ferry services perform stable 16
Slide 18: Operational Review - Infrastructure
Operational Review - Infrastructure Steady recurring income from the 59 strong project portfolio Water treatment & Energy Roads and Bridges Waste management Î Zhujiang Power Station & Î Steady Growth Î Stable growth Macau Power are significant contributors Î Disposed of low-yielding Î Seeking expans
Slide 19: Operational Review - Ports
Operational Review - Ports CSX World Terminals HK (CT3) ATL Logistics Centre ( 3 ) Î 4% decline in throughput Î Occupancy rate over 90% 18
Slide 20: Operational Review - Ports
Operational Review - Ports Xiamen Xiang Yu Quay CSX Orient (Tianjin) Î Merger enhances efficiency Î Increase in AOP Î 39% growth in throughput to Î Throughput grows 16% to 281,000 TEUs 578,000 TEUs 19
Slide 21: Outlook – Service
Outlook – Service Facilities Î Strong business pick up at HKCEC Î More contracts in property management and cleaning Contracting Î HK construction market continues to be slow with thin margin Î Tap Mainland China market: stake in construction company Î Hunghom PSPS project poses new opportunity Tran
Slide 22: Outlook – Infrastructure
Outlook – Infrastructure Roads and Bridges Î Steady growth Î Benefits from rise in car ownership Î Divests low-yielding projects Energy Î Tariff pressure stablized Î Demand & consumption continue to rise Water treatment and Waste management Î Mainland China water market : Spectacular growth in volum
Slide 23: Outlook – Ports
Outlook – Ports Hong Kong Î CT3 ÎThroughput drops and contribution declines ÎTough when CT9 is operational 4Q/2004 Î ATL Logistics Centre ÎStable contribution Tianjin & Xiamen Î Strong growth in throughput Î Benefit from the strategic location & international trade 22
Slide 24: New Investments
New Investments Service - Facilities • Free Duty Æ Duty free alcohol & tobacco sales in the airport & the ferry terminals at China HK City & Shun Tak Centre Æ Benefits from tourism recovery 23
Slide 25: New Investments
New Investments Service - Contracting • Strategic investment in China Construction Third Engineering Bureau Company Limited ( ) Æ 10% stake for RMB56 million Æ Access to Super Grade qualification ( ) Æ Opportunity to acquire a 25% stake in one of its subsidiaries Æ Set up a wholly-owned construction
Slide 26: New Investments
New Investments Service - Transport • 50% stake in Merryhill Group Æ Restructuring completed in March 2004 Æ NWSH net debt reduced by HK$1.4 billion Æ Enhanced synergies Æ Route realignment improves profitability • Kunming bus services Æ Started operation in Jan 2004 Æ RMB72 million for 51% stake Æ
Slide 27: New Investments
New Investments Infrastructure • Sanya Water Treatment Project Æ 25% stake for 30 years Æ the first concession granted to foreign investor for an entire city in Mainland China Æ Generates immediate profit contribution and positive cash inflow Æ Replicates the success model to other cities 26
Slide 28: Corporate Strategies
Corporate Strategies Ä Consolidate businesses, sustain growth & seek expansion opportunities Ä Divest low-yielding projects. Invest projects with higher return Ä Pay dividends Interim & Final Ä Reduce debts Target gearing below 45% Ä Reward outstanding staff 27
Slide 29: NWSH stock closing price (July – Mar 2004)
NWSH stock closing price (July – Mar 2004) (HK$) 10.00 10.15 9.00 8.00 7.00 6.00 5.00 3.575 4.00 3.00 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 28