Slide 1: FY2024 Interim Presentation Media Briefing
FY2024 INTERIM PRESENTATION MEDIA BRIEFING 29 February 2024
Slide 2: Delivering Resilient Results in a Challenging Environment
Delivering Resilient Results in a Challenging Environment… …With Lights Seen at the End of the Tunnel HK PROPERTY MARKET EXPECTED TO REVIVE on the back of scrapping all property cooling measures MAINTAIN OVERALL STABLE PROFITABILITY from rising core profit margin and improved IP contributions DELEVE
Slide 3: Section I: Financial Highlights
SECTION I FINANCIAL HIGHLIGHTS
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS DELIVERING RESILIENT RESULTS IN A CHALLENGING ENVIRONMENT Core Profit (1) (2) Profit/(loss) for the Period Capital Resources HK$52.0B HK$1,543M (+16% YoY) HK$4,866M From continuing operations (Excl. NWS) f HK$39.0b cash & bank balances HK$502M HK$13.0b undrawn lines +12% YoY Pro
Slide 5: Key Highlights in 1HFY24: DP and IP Results
KEY HIGHLIGHTS IN 1HFY24 DP AND IP RESULTS UNDER CHALLENGING ENVIRONMENT HK$m Hong Kong Mainland China A B 896 929 1,745 1,492 IP 1,299 1,094 Revenue: HK$2.7bn Investment 441 454 (+12.0%) Properties Segment results: HK$1.8bn (+14.3%) Revenue Segment results Revenue Segment results 1HFY23 1HFY24 1HFY
Slide 6: Recurring Business to Contribute ~50% Profit by 2026
11. INVESTMENT PROPERTIES RECURRING BUSINESS TO CONTRIBUTE ~50% PROFIT BY 2026 Improved earnings stability as a result of strong rental income growth from IP pipeline 2023 2026 Recurring core profit Non-recurring core profit ~30% ~70% ~50% Existing IPs New IPs Major IPs Victoria 11 SKIES, Kai Tak Sh
Slide 7: Solid K11 Results Benefiting from City Reopening
A INVESTMENT PROPERTIES HONG KONG SOLID K11 RESULTS BENEFITTING FROM CITY REOPENING & STRATEGY ON COLLABORATION WITH DIFFERENT BRANDS IP Revenue Favorable HK policies K11 YoY growth YoY growth +17% +21% 1,745 Night Market at HK Tourism Development Blueprint 2.0 Flight Tickets Giveaway Hong Kong’s Wa
Slide 8: Kai Tak Sports Park: The Largest Sports Venue in Hong Kong
11. INVESTMENT PROPERTIES HONG KONG KAI TAK SPORTS PARK: THE LARGEST SPORTS VENUE IN HONG KONG (By alphabetical order) The Largest “Sportainment” Retail Kai Tak Sports Park Experience Landmark Completion in 2024 Completion in 2H 2024 Opening in 2025 (Host the 15th National Games in 2025) GFA No. of
Slide 9: K11 Pipeline: Entering a Harvesting Phase
A INVESTMENT PROPERTIES HONG KONG K11 PIPELINE: ENTERING A “HARVESTING PHASE” BEGINNING THE LONGER-TERM PROCESS OF REALIZING RETURNS ON PAST INVESTMENTS 11 SKIES & KAI TAK SPORTS PARK: Newest landmarks at the heart of GBA 11 SKIES Kai Tak Sports Park One-Stop Largest Entertainment, Retail and Commer
Slide 10: Resilient K11 Margin from Good Cost Control Measures
B INVESTMENT PROPERTIES MAINLAND CHINA RESILIENT K11 MARGIN RESULTING FROM GOOD COST CONTROL MEASURES IP Revenue Pipeline: K11 ECOAST in Shenzhen Prince Bay (深圳太子灣) K11 YoY growth YoY growth +4% -3% 929 896 1HFY23 1HFY24 IP Segment Results K11 YoY growth YoY growth +3% +12% K11’s inaugural flagship
Slide 11: 2024 Budget Removed All Property Demand Suppression Policies
2 DEVELOPMENT PROPERTIES HONG KONG 2024 BUDGET REMOVED ALL PROPERTY DEMAND SUPPRESSION POLICIES With other property related restrictions relaxed by HKMA, such as mortgage ratios and stress test requirements POTENTIAL BUYERS: • Removal purchase restrictions significantly reduce the transaction costs
Slide 12: Robust DP Pipeline Supporting Continuous Growth
22. DEVELOPMENT PROPERTIES ROBUST DP PIPELINE SUPPORTING CONTINUOUS GROWTH FY2024 + (selective projects) …… Hong Kong • Kai Tak 6591 • Kai Tak • WCH Phase 5 • State Theatre • 4A-4P Seymour • JV with CR Land Mansion Road …… China • Guangzhou The Sillage 白鹅潭 • Shenzhen Longgang 188 • Shenzhen • Shenzh
Slide 13: First Northern Metropolis Cooperation Agreement in HK
22. DEVELOPMENT PROPERTIES FIRST NORTHERN METROPOLIS COOPERATION AGREEMENT IN HK Strategic cooperation with China Resources Land Future Pipeline Unlock Value Strategic cooperation agreement signing with CR Land in Dec 2023 Site Area (FT2) Plot Ratio GFA (FT2) ~150,000 ~5x ~720,000 No. of units to bu
Slide 14: Mainland China Sales Exceeded Target
D DEVELOPMENT PROPERTIES MAINLAND CHINA MAINLAND CHINA SALES EXCEEDED TARGET Abundant saleable resources of RMB57b+ in GBA and YRD tier-one cities Contracted sales Recent key projects launched GUANGZHOU THE 1H EXCEEDED SILLAGE TARGET To be launched in 2024 • Housing purchase restrictions lifted in 1
Slide 15: Mainland China Unique Urban Renewal Projects Approach
D DEVELOPMENT PROPERTIES MAINLAND CHINA MAINLAND CHINA UNIQUE URBAN RENEWAL PROJECTS (“URP”) APPROACH Focus on URP with less upfront capex, lower land premium and shorter execution process Urban Renewal Projects Longgang District 188 Industrial Zone Project Deeply involved in PRC >40 years Project t
Slide 16: Significantly Lower Capex in FY24
3 CAPEX & OPEX OPTIMIZATION SIGNIFICANTLY LOWER CAPEX IN FY24 CAPEX Optimization 37 Significantly Lower 35 in FY24 2H: 12.4 19 2H: 9.4 4 15 1H: 20.6 2H: 7.5 1H: 9.6 1HFY24: 1H: 7.5 -21% YoY FY21A FY22A FY23A (1) FY24 (1) Note: (1) All figures in HK$b CAPEX Optimization Initiatives More disciplined l
Slide 17: Non-Core Disposals
4 NCD NON-CORE DISPOSALS Non-core disposals to i) optimize portfolio mix; ii) accelerate deleveraging; iii) increase financial flexibility Non-core + other disposals ahead of market Progress update HK$b ✓ NWD has been actively disposing non-core assets since FY2019 for 27.7 capital recycling NWS NCD
Slide 18: Disclaimer
DISCLAIMER Important notice The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, inducement, invitation, recommendation or