Slide 1: 1H 2017 Interim Results Investor Presentation
1H 2017 INTERIM RESULTS INVESTOR PRESENTATION 21 AUGUST 2017
Slide 2: Agenda
2 1 1H 2017 RESULTS HIGHLIGHTS 2 DEVELOPMENT PROPERTIES 3 INVESTMENT PROPERTIES 4 FINANCIAL POSITION 5 APPENDIX
Slide 3: 1H 2017 Results Highlights
3 1 1H 2017 RESULTS HIGHLIGHTS
Slide 4: 1H 2017 Results Highlights
4 1H 2017 RESULTS HIGHLIGHTS • Underlying profit rose 98% to $2.8B • Total property sales turnover increased 427% to $14.6B. Total property rental and hotel operations turnover grew 13% and 15% respectively to $2.2B and 0.9B • Mantin Heights obtained occupation permit during the period and recognize
Slide 5: Financial Summary
5 FINANCIAL SUMMARY HK$ million 1H 2017 1H 2016 Change Turnover 17,742 5,537 +220% Gross profit 4,102 2,612 +57% Share of results of associates 688 548 +26% Underlying profit 2,833 1,434 +98% Net increase in fair value in investment properties 476 607 -22% Reported profit 3,309 2,041 +62% Earnings p
Slide 6: Operating Segments Overview
6 OPERATING SEGMENTS OVERVIEW HK$ million Turnover Gross Profit Gross Margin * Recurrent revenue Note 1H 2017 1H 2016 Change 1H 2017 1H 2016 Change 1H 2017 1H 2016 Property sales 14,606 2,769 +427% 2,156 949 +127% 15% 34% HK N1 10,085 203 +4,868% 1,176 69 +1,604% 12% 34% PRC N2 4,521 2,566 +76% 980
Slide 7: Development Properties
7 2 DEVELOPMENT PROPERTIES
Slide 8: Development Properties Overview
8 DEVELOPMENT PROPERTIES OVERVIEW Contracted Sales 1H 2017 1H 2016 HK$ HK PRC HK * KPL’s Interest Contracted Sales $4.1B $2.9B 10.1B Saleable Area Sold Approx. 189,000 s.f Approx. 182,000 s.f 8.4B -17% Recognized Sales Subsidiary projects: $10.1B Subsidiary projects: $0.2B Associate projects: $0.3B*
Slide 9: Development Properties – HK
9 DEVELOPMENT PROPERTIES – HK 1-7/2017 1-7/2017 Contracted Sales : $3.4B Contracted Sales : $0.9B ASP: $24,000 psf ASP: $15,600 psf (+16% vs. FY 2016) (+26% vs. FY 2016) Mantin Heights The Bloomsway Accumulative sales performance up to 31 Jul 2017: • Total units: 1,429 • Total units: 1,100 • 1st lau
Slide 10: Development Properties – PRC
10 DEVELOPMENT PROPERTIES – PRC PRC Contracted ASP New launch in 1H 2017 (includes attributable contracted sales from associates) RMB psm Lake Grandeur 30,000 (formerly known as Hangzhou Kerry Centre) 25,300 25,000 19,100 20,000 17,800 15,100 15,600 15,000 10,000 1H2015 FY2015 1H2016 FY2016 1H2017 P
Slide 11: Investment Properties
11 3 INVESTMENT PROPERTIES
Slide 12: Investment Properties – Overview
12 INVESTMENT PROPERTIES – OVERVIEW Total Property Rental Prime-quality assets in 1st tier cities (includes attributable rental income from associates) PRC Six Mixed-Use Properties in the CBDs of Major Cities HK$ million HK Stable Contribution of Recurrent Income 2,378M +12% 2,124M Jing An, Shanghai
Slide 13: Investment Properties – PRC Completed Properties
13 INVESTMENT PROPERTIES – PRC COMPLETED PROPERTIES PRC Property Rental • GFA(100%)* 1.5Ms.f Beijing • Occupancy (@ 30 Jun 2017) * 96% Gross rental revenue: HK$1.8B Kerry Centre • Yield on Cost * 20% (includes attributable rental income from associates) • Completion 1998 • KPL’s interest 71.25% Attr
Slide 14: Hangzhou Kerry Centre – In Full Operation
14 HANGZHOU KERRY CENTRE – IN FULL OPERATION As at 31 Jul 2017: 95% occupancy Commercial • 97% committed • 95% occupied • Shopping mall soft opened in late 2016 Office • 100% occupied Hotel • Avg. occupancy increased to 73% in 1H 2017 from 51% in 1H 2016 • Avg. room rate +30% YoY in 1H 2017 GFA ( mi
Slide 15: Hangzhou Kerry Centre – Shopping Mall
15 HANGZHOU KERRY CENTRE – SHOPPING MALL A wide variety of retail options at the heart of Hangzhou, a young and chic ambience Commercial Tenant Mix (by GFA) & Major Brands : F&B 35% Fashion & Accessories & Jade Garden Children’s Retail Blue Frog Element Fresh The Grandma’s COS Hard Rock Cafe Uniqlo
Slide 16: Investment Properties – Under Development
16 INVESTMENT PROPERTIES – UNDER DEVELOPMENT QIANHAI, SHENZHEN Project Qianhai #1 Qianhai #2 Summary Qianhai (Project #1) • Two grade-A office towers Acquisition date Jan-2015 Dec-2016 • Three residential buildings Total gross Total: 202,000 s.m Total: 120,300 s.m development area (s. m) Office: 120
Slide 17: Investment Properties – HK
17 INVESTMENT PROPERTIES – HK HK Property Rental Apartment Office Commercial Gross rental revenue: HK$590M Occupancy Occupancy Occupancy (includes attributable rental income from associates) (6/2017): 99% (6/2017): 94% (6/2017): 99% Attributable GFA 2.9M s.f Increase in rental Enterprise S
Slide 18: Financial Position
18 4 FINANCIAL POSITION
Slide 19: Financial Position
19 FINANCIAL POSITION As at 30 As at 31 Debt Maturity Profile HK$ million Jun 2017 Dec 2016 Change Total Debt : $40,084M HK$ million Total Debt 40,084 45,333 -12% Fixed Rate Bonds Bank Loans Cash and bank 15,497 16,481 -6% balance Net Debt 24,587 28,852 -15% Undrawn Bank Loan 11,067 9,287 +19% Facil
Slide 20: Appendix
20 5 APPENDIX A. 1H 2017 Contracted Sales - HK B. 1H 2017 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 21: A. 1H 2017 Contracted Sales – HK
21 A. 1H 2017 CONTRACTED SALES – HK Projects on sale KPL’s Total Units Accumulative Inventory ASP achieved Sales (KPL’s Interest) interest project sold in units sold as at 1H as at 1H 2017 in 1H 2017 proceeds in 1H (%) units 1H 2017 2017 (units) HK$ psf 2017^ HK$ bn MAJOR PROJECTS 1 Mantin Heights 1
Slide 22: B. 1H 2017 Contracted Sales – PRC
22 B. 1H 2017 CONTRACTED SALES – PRC Major projects on sale Product Contracted GFA Sold ASP KPL’s (KPL’s Interest) type sales ^ s.m achieved interest RMB’M in 1H2017 RMB psm 1 Hangzhou Castalia Court 杭州云荷廷 R 1,065 32,100 33,200 100% 2 The Berylville, Ningbo Ph 2 宁波泊璟廷二期 R 414 12,800 32,400 50% 3 She
Slide 23: C. Major Properties Under Development – HK
23 C. MAJOR PROPERTIES UNDER DEVELOPMENT – HK Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA* (%) (s.f.) FOR SALE PROPERTIES 1 The Bloomsway So Kwun Wat R Superstructure work in 2H 2017 100 939,600 progress 2 Beacon Hill Project (NKIL 6532) Beacon Hill R Supe
Slide 24: D. Major Properties Under Development – PRC
24 D. MAJOR PROPERTIES UNDER DEVELOPMENT – PRC Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributa (%) ble GFA (s.f.) MAJOR MIXED-USE DEVELOPMENT 1 Hangzhou Kerry Centre Hangzhou R Completion verification in progress 2H 2017 75 249,936 2 Shenyang Kerry Centre Sh
Slide 25: D. Major Properties Under Development – PRC (Con't)
25 D. MAJOR PROPERTIES UNDER DEVELOPMENT – PRC (CON’T) Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) OTHER INVESTMENT PROPERTIES (CON’T) 9 Shenzhen Qianhai Complex Shenzhen H/O/C Schematic design in progress 2021 25 322,830 Development 2
Slide 26: E. PRC Major Completed Mixed-Use Properties
26 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES 30 Jun 2017 GFA & Occupancy Attri GFA (000s s.f.) Beijing Shanghai Shenzhen Tianjin Hangzhou Total Occupancy Office 711 1,440 1,552 - 100 3,803 97% Commercial 98 1,096 104 428 812 2,538 95% Apartment 277 774 - - - 1,051 87% Total 1,086 3,310 1,656 428 9
Slide 27: E. PRC Major Completed Mixed-Use Properties (Con't)
27 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) Occupancy rate (by segment) As at 30 Jun 2017 As at 31 Dec 2016 Serviced Apartment 92% 97% Office 98% 98% 1 Beijing Kerry Centre Commercial 97% 98% Average 96% 98% Serviced Apartment 86% 90% Office 100% 100% 2 Jing An Kerry Centre Ph 1 Commercia
Slide 28: E. PRC Major Completed Mixed-Use Properties (Con't)
28 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 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
Slide 29: E. PRC Major Completed Mixed-Use Properties (Con't)
29 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 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 30: E. PRC Major Completed Mixed-Use Properties (Con't)
30 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 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 31: F. Land Bank – Overview
31 F. LAND BANK – OVERVIEW Total Property Portfolio Attributable GFA: Approx. 41.7M s.f. (as of 30 Jun 2017) PUD 56% Held for sale 6% Macau 6% PRC Overall – Overseas Overall – 73% Hotel 9% 9% By Type By Location HK 12% Completed IP 29% Hotel Residential Macau 10% 6% 60% Apartment PUD – 1% PRC PUD –
Slide 32: F. Land Bank – HK
32 F. LAND BANK – HK HK Land bank Attributable GFA (‘000 s.f) Hotel 1% Commercial Completed Investment Properties 2,863 25% Residential 41% Commercial 1,219 4.9M s.f in Office 841 attributable GFA Apartment 803 Office 17% Properties under development 1,492 Apartment 16% Completed properties held for
Slide 33: F. Land Bank – PRC
33 F. LAND BANK – PRC PRC Land bank Attributable GFA (‘000 s.f) Hotel 16% Completed Investment Properties 7,392 Commercial 17% Commercial 2,538 Residential 30.5M s.f 37% Office 3,803 attributable GFA Apartment 1,051 Properties under development 17,270 Office 26% Apartment 4% Completed properties hel
Slide 34: Disclaimer
34 DISCLAIMER 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