Slide 1: FY 2018 Annual Results Investor Presentation
FY 2018 ANNUAL RESULTS INVESTOR PRESENTATION 15 MARCH 2019
Slide 2: FY 2018 RESULTS HIGHLIGHTS DEVELOPMENT PROPERTIES INVESTMENT PROPERTIES
2 1 FY 2018 RESULTS HIGHLIGHTS 2 DEVELOPMENT PROPERTIES 3 INVESTMENT PROPERTIES 4 FINANCIAL POSITION 5 APPENDIX
Slide 3: FY 2018 Results Highlights
3 1 FY 2018 RESULTS HIGHLIGHTS
Slide 4: FY 2018 Results Highlights
FY 2018 RESULTS HIGHLIGHTS 4 TURNOVER PROPERTY SALES PROPERTY RENTAL HOTEL OPERATIONS -40% -50% +7% +10% HK$ 21.4B HK$ 14.5B HK$ 4.9B HK$ 2.1B UNDERLYING PROFIT FINAL DIVIDEND NAV GEARING HK$ -50% HK$/Sh +6% HK$/Sh +3% % -5.6% pts 0.95 22.5 6.7B 67.0 16.9 3.3B 0.90 65.2 FY 2017 FY 2018 FY 2017 FY 20
Slide 5: Financial Summary
FINANCIAL SUMMARY 5 HK$ million Note FY 2018 FY 2017 Change Turnover 21,433 35,548 -40% Gross profit 9,003 9,745 -8% Share of results of associates and joint ventures 2,142 2,060 +4% Underlying profit (before exceptional items) 5,981 6,649 -10% Exceptional items: Provision for impairment loss of pro
Slide 6: FY 2018 Highlights: Changes in Accounting Policies
FY 2018 HIGHLIGHTS: CHANGES IN ACCOUNTING POLICIES 6 The Group has adopted HKFRS 9 and HKFRS 15 from 1 Jan 2018, which results in changes in accounting policies and adjustments to the amounts recognised in the FY18 financial statements: I. Impact on the financial statements – line items of consolida
Slide 7: FY 2018 Highlights: Changes in Accounting Policies
FY 2018 HIGHLIGHTS: CHANGES IN ACCOUNTING POLICIES 7 II. Impact on the financial statements – line items of consolidated statement of financial position As of 31 Dec, 2018 Without the Effect of Effect of As HK$’million adoption of adoption of adoption of reported HKFRS 9 and HKFRS 9 HKFRS 15 HKFRS 1
Slide 8: Operating Segments
OPERATING SEGMENTS 8 HK$ million Turnover Gross Profit Gross Margin * Recurrent revenue Note FY 2018 FY 2017 Change FY 2018 FY 2017 Change FY 2018 FY 2017 Property sales 14,475 29,089 -50% 4,780 5,749 -17% 33% 20% HK N1 6,959 20,626 -66% 2,399 3,090 -22% 34% 15% PRC N2 7,516 8,463 -11% 2,381 2,659 -
Slide 9: Development Properties
9 2 DEVELOPMENT PROPERTIES
Slide 10: Development Properties Overview
DEVELOPMENT PROPERTIES OVERVIEW 10 Contracted Sales FY 2018 FY 2017 HK$ HK PRC HK * KPL’s Interest Contracted Sales $8.4B $9.3B 16.9B Saleable Area Sold Approx. 278,000 s.f Approx. 405,000 s.f 15.1B -11% Recognized Sales Subsidiaries $7.0B $20.6B 7.6B Associates - $0.5B* Recognized Projects Mantin H
Slide 11: Development Properties – HK Projects on Sale
DEVELOPMENT PROPERTIES – HK PROJECTS ON SALE 11 Mantin Heights The Bloomsway Accumulative sales performance up to end-Feb 2019: Accumulative sales performance up to end-Feb 2019: • Total units: 1,429 • Sold 1,339 units or 94% • Total units: 1,100 • Contracted sales $9.2B • 1st launch in of total uni
Slide 12: Development Properties – HK Upcoming Projects
DEVELOPMENT PROPERTIES – HK UPCOMING PROJECTS 12 BEACON HILL PROJECTS Project Summary Mont Rouge (Site 1) Site 2 Planned to be developed into low- Acquisition date Feb-2015 Oct-2016 density residential projects with a total Total gross buildable GFA 116,000 s.f 343,000 s.f Land cost ( HK$ ) 2.4B or
Slide 13: Development Properties – PRC
DEVELOPMENT PROPERTIES – PRC 13 New project acquisitions in FY 2018 Fuzhou Wuhan Qianhai Ph 3 Land acquisition Aug-2018 Sep-2018 Dec-2018 Total plot ratio GFA (s.m) 344,000 438,000 86,000 Land cost (Rmb) 2.5B or Rmb 7,200 psm 6.4B or Rmb14,700 psm 2.6B or Rmb 30,600 psm KPL’s interest 100% 100% 100%
Slide 14: Investment Properties
14 3 INVESTMENT PROPERTIES
Slide 15: Investment Properties – Overview
INVESTMENT PROPERTIES – OVERVIEW 15 Total Property Rental PRC Seven Mixed-Use Properties in the CBDs of Major Cities (includes attributable rental income from associates) HK$ million HK PRC Shanghai Beijing Shenzhen Pudong 1998 2008 5,291M +7% 2011 4,955M Shanghai Tianjin Hangzhou JingAn 2015 2016 2
Slide 16: Investment Properties – PRC Completed Properties
INVESTMENT PROPERTIES – PRC COMPLETED PROPERTIES 16 PRC Property Rental • GFA(100%)* 1.5Ms.f Beijing • Occupancy (@ 31 Dec 2018) * 96% Gross rental revenue: HK$4.0B Kerry Centre • Yield on Cost * 21% (includes attributable rental income from associates) • Completion 1998 • KPL’s interest 71.25% Attr
Slide 17: Investment Properties – New Completion
INVESTMENT PROPERTIES – NEW COMPLETION 17 HOTEL (PH 1) SHENYANG KERRY CENTRE Completed in 2014 OFFICE (PH 1) Completed in 2014 Project Summary Ph 1 Ph 2 Ph 3 OFFICE (PH 2) Completed in 2H 2018 Total GFA (s.m) 329,800 233,400 458,800 Retail (for sale / lease): 21,800 69,300 65,500 Residential (for sa
Slide 18: Investment Properties – Shenyang Kerry Centre Ph 2
INVESTMENT PROPERTIES – SHENYANG KERRY CENTRE PH 2 18 Shenyang Shenyang KERRY PARKSIDE ENTERPRISE SQUARE Shopping Mall Office • Completion 2H 2018 • Completion 2H 2018 • Soft opened 30 Nov 2018 • GFA (s.m) 54,800 • GFA (s.m) 75,300 • Committed space • Committed space 46% 82% (as at 2/2019) (as at 2/
Slide 19: Investment Properties – Under Development, Qianhai Kerry Centre
INVESTMENT PROPERTIES – UNDER DEVELOPMENT 19 QIANHAI KERRY CENTRE T2 Office T1 Office T8 Office T6 Apartment Hotel T5 Apartment T9 T3 Apartment Project Summary Site #1 Site #2 Site#3 T7 Office (Bank of East Asia) Land acquisition Jan-2015 Dec-2016 Dec-2018 No. of Towers 5 (T1 T2 T3 T5 T6) 3 (T7 T8 T
Slide 20: Investment Properties – HK
INVESTMENT PROPERTIES – HK 20 HK Property Rental Gross rental revenue: HK$1.3B (includes attributable rental income from associates) Attributable GFA 2.9M s.f Occupancy at 31 Dec 2018 : 99% Occupancy 98 % (weighted average) Commercial Megabox continues to achieve positive Prop mgmt, carparks and
Slide 21: Financial Position
21 4 FINANCIAL POSITION
Slide 22: Financial Position
FINANCIAL POSITION 22 As at 31 As at 31 Debt Maturity Profile HK$ million Dec 2018 Dec 2017 Change Total Debt : $33,111M HK$ million Total Debt 33,111 38,022 -13% Cash and bank Fixed Rate Bonds 14,384 13,748 +5% balance Bank Loans Net Debt 18,727 24,274 -23% 9,253 Undrawn Bank Loan 12,325 11,665 +6%
Slide 23: Appendix
23 5 APPENDIX A. FY 2018 Contracted Sales - HK B. FY 2018 Contracted Sales - PRC C. Major Properties Under Development - HK D. Major Properties Under Development - PRC E. PRC Major Completed Mixed-Use Properties F. Land Bank – Overview / HK / PRC
Slide 24: A. FY 2018 Contracted Sales – HK
A. FY 2018 CONTRACTED SALES – HK 24 Projects on sale KPL’s Total Units Accumulative Inventory ASP achieved Sales interest project sold in units sold as at as at 31 Dec in FY 2018 proceeds in (%) units FY 2018 FY 2018 2018 (units) HK$ psf FY 2018^ HK$ bn MAJOR PROJECTS 1 Mantin Heights 100% 1,429 294
Slide 25: B. FY 2018 Contracted Sales – PRC
B. FY 2018 CONTRACTED SALES – PRC 25 Major projects on sale Product Contracted GFA Sold ASP KPL’s (100% subsidiaries + KPL’s interest type sales ^ s.m achieved interest for associates) RMB’M in FY 2018 RMB psm 1 Qianhai 1 前海1 R 1,715 16,620 93,200 100% 2 Jinling Arcadia Court, Nanjing 南京金陵‧雅頌居 R 1,1
Slide 26: C. Major Properties Under Development – HK
C. MAJOR PROPERTIES UNDER DEVELOPMENT – HK 26 Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA* (%) (s.f.) FOR SALE PROPERTIES 1 Mont Rouge Beacon Hill R Interior finishing work 1H 2019 100 116,380 in progress 2 Beacon Hill Project Beacon Hill R Superstructure
Slide 27: D. Major Properties Under Development – PRC
D. MAJOR PROPERTIES UNDER DEVELOPMENT – PRC 27 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributa (%) ble GFA (s.f.) MAJOR MIXED-USE DEVELOPMENT 1 Shenyang Kerry Centre Shenyang R/C Interior decoration work in progress In phases 60 449,524 Phase II Arcadia Heig
Slide 28: D. Major Properties Under Development – PRC (Con't)
D. MAJOR PROPERTIES UNDER DEVELOPMENT – PRC (CON’T)28 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) OTHER INVESTMENT PROPERTIES (CON’T) 8 Kunming Complex Kunming R/H Earthwork and lateral 2021 55 382,925 Development support work in progre
Slide 29: E. PRC Major Completed Mixed-Use Properties
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES 29 31 Dec 2018 GFA & Occupancy Attri GFA (000s Beijing Shanghai Shenzhen Hangzhou Shenyang Tianjin Jinan Total Occupancy s.f.) Office 711 1,429 1,552 102 354 - 195 4,343 88% Commercial 98 1,096 104 798 486 435 34 3,051 88% Apartment 277 774 - - - - - 1,051
Slide 30: E. PRC Major Completed Mixed-Use Properties (Con't)
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 30 Occupancy rates (by segment) 2019 As at 31 Dec 2018 As at 31 Dec 2017 Serviced Apartment 93% 96% Office 99% 98% 1 Beijing Kerry Centre Commercial 85% 94% Average 96% 97% Serviced Apartment 87% 87% Office 99% 99% 2 Jing An Kerry Centre Ph 1 Comme
Slide 31: E. PRC Major Completed Mixed-Use Properties
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES 31 Jing An Kerry Centre, Shanghai Puxi GFA ( million s.f.) 3.7M s.f Commercial 1.0 • Located in the heart of Shanghai’s Nanjing Road business Office 1.7 district Apartment 0.2 • A pre-eminent shopping venue and exclusive office Hotel 0.8 address in Shangha
Slide 32: E. PRC Major Completed Mixed-Use Properties (Con't)
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 32 Beijing Kerry Centre 2.2M s.f GFA ( million s.f.) Commercial 0.1 • Continues to be an iconic presence at the heart of Beijing Office 1.0 • Located in the Chaoyang district, the city's commercial Apartment 0.4 and financial center and within the
Slide 33: E. PRC Major Completed Mixed-Use Properties (Con't)
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 33 Tianjin Kerry Centre Ph 1 1.7M s.f GFA ( million s.f.) Commercial 0.9 • Mixed-use development located on the east bank of the Hotel 0.8 Haihe CBD in Hedong District Total 1.7 • Phase I of the development includes a hotel, upscale residences for
Slide 34: E. PRC Major Completed Mixed-Use Properties (Con't)
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 34 Shenyang Kerry Centre Ph 1 & 2 2.1M s.f GFA ( million s.f.) Commercial 0.8 • Mixed-use development located at the east side of Office 0.6 Qingnian Street Hotel 0.7 • Include a hotel, offices, a shopping mall and residences Total 2.1 • Phase I of
Slide 35: F. Land Bank – Overview
F. LAND BANK – OVERVIEW 35 Total Property Portfolio Attributable GFA: Approx. 45.5M s.f. (as of 31 Dec 2018) Held for sale 5% Hotel Macau 10% 4% PUD 56% Overall – Overseas 9% Overall – PRC 78% By Type By Location HK 9% Completed IP 29% Hotel 4% Macau 8% Office 31% Overseas 7% PUD – PRC PUD – By Loca
Slide 36: F. Land Bank – HK
F. LAND BANK – HK 36 HK Land bank Attributable GFA (‘000 s.f) Hotel 1% Commercial 30% Residential Completed Investment Properties 2,863 29% Commercial 1,219 4.1M s.f in Office 841 attributable GFA Apartment 803 Properties under development 818 Office Apartment 20% 20% Completed properties held for s
Slide 37: F. Land Bank – PRC
F. LAND BANK – PRC 37 PRC Land bank Attributable GFA (‘000 s.f) Hotel 14% Commercial 17% Completed Investment Properties 8,445 Commercial 3,051 35.4M s.f Residential Office 4,343 attributable 34% GFA Apartment 1,051 Office 32% Properties under development 20,887 Apartment Completed properties held f
Slide 38: Disclaimer
DISCLAIMER 38 The information in this presentation is for personal, non-commercial reference and general information purposes only and should not be relied upon for investment decision purposes. The information in this presentation, including without limitation any stock price, market data informati