Wharf (Holdings) Ltd. · HKEX:4
Wharf (Holdings) — H1 2006 Earnings Presentation
26 slides from Wharf (Holdings)'s earnings presentation, Aug 23, 2006
Slide 1: 2006 Interim Results
2006 Interim Results 23 August 2006 HONG KONG 1
Slide 2: Results Highlights
Results Highlights Turnover HK$6,449M, up 4% Operating profit HK$3,018M, up 4% Before property revaluation, net profit HK$1,900M, down 1% Profit attributable to shareholders HK$6,259M, down 31% Interim DPS 36 cents Interim Results 2006 Debt to equity ratio 23% 2
Slide 3: Results Highlights
Results Highlights Solid growth in Property Investment rentals continues. Lower performance by Modern Terminals as Hong Kong handles more transshipment cargos. i-Cable’s performance distorted by revenue and expense timing mismatch relating to FIFA World Cup 2006 and notional deferred tax New
Slide 4: Results Highlights
Results Highlights 1H 06 1H 05 % (HK$) (HK$) Changes Net profit excluding revaluation surplus 1,900M 1,923M -1% Revaluation surplus (net of tax & MI) 4,359M 7,112M -39% Profit attributable to shareholders 6,259M 9,035M -31% Earnings per share 2.56 3.69 -31% Interim Results 2006 EPS (excl.
Slide 5: Results Highlights
Results Highlights % 1H 06 1H 05 Changes Borrowing Costs $412M $180M +129% Average Interest Rate 4.7% 2.6% +2.1% pts Interest Cover 5.5 17.3 % Jun 06 Dec 05 Changes Interim Results 2006 Net Debt $16.4B $16.1B +2% Debt to Shareholders’ Equity 23.2% 24.6% 5
Slide 6: Business Performance: Property Investment
Business Performance Revenue Segment Profit 1H 06 1H 05 % 1H 06 1H 05 % (HK$M) (HK$M) Changes (HK$M) (HK$M) Changes Property Investment 2,718 2,475 +10% 1,915 1,728 +11% 66% 84% Interim Results 2006 Segment Profit Allocation Share of Group NAV 6
Slide 7: Property Investment: Harbour City
Property Investment Harbour City Revenue Occupancy 1H 06 1H 05 % (HK$M) (HK$M) Changes % Retail 709 637 +11% 99% Office 526 493 +7% 95% Serviced Apartments 103 107 -4% 75% Hotel 451 385 +17% 90% Interim Results 2006 Total 1,789 1,622 +10% 7
Slide 8: Property Investment: Harbour City Retail
Property Investment Harbour City Retail Average occupancy : 99% (2005 : 99%) Continual improvement in local sentiment and tourist arrivals boosted retail revenue Tenant’s average sales psf +18% YoY. Interim Results 2006 Over 95% of new space from OC carpark conversion (GFA: 45,000 s.f.) pre-
Slide 9: Property Investment: Harbour City Office and Serviced Apartments
Property Investment Harbour City Office Average occupancy : 95% (2005 : 96.5%) Retention rate : 74% New lettings : 170,000 sq.ft. Recent transaction at Gateway of HK$42 psf – record high Serviced Apartments Average occupancy : 75% (2005 : 85%) Interim Results 2006 Strong competition from
Slide 10: Property Investment: Times Square
Property Investment Times Square Revenue Occupancy 1H 06 1H 05 % (HK$M) (HK$M) Changes % Retail 334 308 +8% 100% Office 139 129 +8% 93% Interim Results 2006 Total 473 437 +8% 10
Slide 11: Property Investment: Times Square Retail and Office
Property Investment Times Square Retail Average occupancy : ~ 100% (2005 : 99.6%) Favourable rental growth on new leases and renewals Cultural and Lifestyle Hub on 9/F well received Trade-mix revamp on B2/F continuing Office Interim Results 2006 Average occupancy : 93% (2005 : 94%) Signi
Slide 12: Property Investments: China
Property Investments China 1H06 Revenue: HK$157M, +9% Average occupancy: 92% (2005: 94%) 1717, Nanjing Xi Road, Shanghai ¾ 1.6M sq.ft. GFA office development ¾ Completion: Mid 2009 Interim Results 2006 12
Slide 13: Property Developments: Hong Kong
Property Developments Hong Kong Revenue – HK$178 million ¾ mainly from sales of 45 units at 60 Victoria Road dev. Remaining stock – to be sold in 2H06 / 1H07 ¾ Bellagio – about 540 units ¾ 60 Victoria Road – 28 units Interim Results 2006 ¾ Gough Hill Path – 4 houses 13
Slide 14: Property Developments: China
Property Developments China Wuhan Times Square ¾ Mix complex, completion: 3Q2007 ¾ Towers 3 and 4 residential: 63% of units launched pre-sold Dalian Times Square ¾ Retail & residential complex, completion: mid 2008 Wellington Garden ¾ Residential, completion: end 2006 ¾ 74% of units launched p
Slide 15: Marco Polo Hotel Group
Marco Polo Hotel Group Current profile ¾ 10 hotels (8 in operation, 2 to be opened) ¾ 2 new hotels planned for Chengdu and Wuhan Hong Kong ¾ Hotel & club revenue: HK$451M, +17% ¾ Double-digit growth in average room rates Marco Polo Plaza, Cebu opened in 2Q06 To be opened Interim Results 2006
Slide 16: Business Performance: Logistics
Business Performance Revenue Segment Profit 1H 06 1H 05 % 1H 06 1H 05 % (HK$M) (HK$M) Changes (HK$M) (HK$M) Changes Logistics 1,609 1,736 -7% 830 949 -13% Interim Results 2006 11% 29% Segment Profit Allocation Share of Group NAV 16
Slide 17: Logistics
Logistics Revenue Throughput 1H 06 1H 05 % 1H 06 1H 05 % (HK$M) (HK$M) Changes TEUs(M) TEUs(M) Changes MTL 1,407 1,555 -10% 2.51 2.48 +0.7% 1H 06 1H 05 % (HK$M) (HK$M) Changes Interim Results 2006 MTL’s Associates & jointly 42 48 -13% controlled entity (post-tax) 17
Slide 18: MTL Hong Kong
MTL Hong Kong Throughput: 2.51M TEUs, +0.7% Market share: 33.9% (2005: 36.3%) 16% drop in operating profit ¾ More competition at Kwai Chung since July 2005 Interim Results 2006 ¾ Box mix shift with more transshipment / feeder cargos ¾ Slight downward rate adjustment on contract renewals 18
Slide 19: MTL China
MTL China Chiwan (8% holding) – 1H06 throughput: 1.6M TEUs Shekou (10%) – 1H06 throughput: 875,000 TEUs Taicang Phase I (51%) – 1H06: 225,000 TEUs, +121% New Investments: ¾ Dachan Bay Phase I (65%) • 5 berths, 2.5M TEUs • Completion on schedule from 2H2007 to end 2008 Interim Results 2006 ¾
Slide 20: Business Performance: CME
Business Performance Revenue Segment Profit 1H 06 1H 05 % 1H 06 1H 05 % (HK$M) (HK$M) Changes (HK$M) (HK$M) Changes CME 1,959 1,948 +1% 141 258 -45% Interim Results 2006 5% 5% Segment Profit Allocation Share of Group NAV 20
Slide 21: CME
CME No. of Subscribers/ Revenue fixed lines 1H 06 1H 05 % Jun 06 Dec 05 % (HK$M) (HK$M) Changes Changes Pay TV 966 948 +2% 770,000 738,000 +4% Internet & 296 279 +6% 321,000 320,000 -- Multimedia Wharf T&T 681 719 -5% 539,000 523,000 +3% Interim Results 2006 21
Slide 22: CME
CME Pay TV – steady growth in subscriber base; 1H06 performance distorted by revenue and expense timing mismatch relating to FIFA World Cup 2006 and notional deferred tax Internet and Multimedia – strong profit growth; continued enhancement of multimedia content and value-added services Integr
Slide 23: Summary of Profit & Loss A/C
Summary of Profit & Loss A/C 1H 06 1H 05 % (HK$M) (HK$M) Change Turnover 6,449 6,179 +4% Operating Profit 3,018 2,908 +4% Revaluation Surplus 5,328 8,691 -39% Profit Before Taxation 7,971 11,514 -31% Taxation (Incl. deferred taxation on revaluation) (1,414) (2,027) -30% Interim Results 2006 Profit A
Slide 24: Debt Profile at June 2006
Debt Profile at 30 June, 2006 Un-drawn Total Debt Facility Company and wholly owned subsidiaries (HK$B) (HK$B) Committed facilities 13.4 69% 3.8 Uncommitted facilities 1.0 5% 1.3 Total: 14.4 74% 5.1 Non-wholly owned subsidiaries (non-recourse to Wharf) Modern Terminals Limited 4.6 24% 2.7 i-CABLE --
Slide 25: NAV Adjustment at June 2006
NAV Adjustment at 30 June 2006 Per Share For Supplemental Information Only: (HK$) NAV per Balance Sheet 28.96 Subjective adjustments:- Modern Terminals (on latest transacted price) 3.33 Hotel Properties (on independent valuation) 1.50 i-CABLE (on market value) 0.38 Interim Results 2006 Deferre
Slide 26: End of Presentation
~ WHARE Established 1886 End of Presentation