Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — FY2022 Earnings Presentation
41 slides from Ctf Services's earnings presentation, Sep 30, 2022
Slide 1: FY2022 Analyst Presentation
FY2022 Analyst Presentation 30 September 2022
Slide 2: Strengthening Portfolio for Tomorrow's Success
Strengthening Portfolio for Tomorrow’s Success Roads Logistics Aviation Acquisition of 40% stake in Acquisition of 6 logistics Goshawk Aviation Limited’s Guigang-Wuzhou Expressway1 properties in Chengdu & Wuhan timely disposal of entire (“Guiwu Expressway” 貴梧高速公路) Formation of an operating a
Slide 3: Optimization of Portfolio to Drive Business Growth
Optimization of Portfolio to Drive Business Growth FY2018 FY2019 FY2022 FY2023 Future Investment Targets: Roads Modern Logistics FTLife’s expansion in the Mainland Core Business Infrastructure Core Business Roads Aviation Environment Logistics Roads Aviation Construction Insurance Roads Constr
Slide 4: Simplified Portfolio with Improved Earnings Quality & Visibility
Simplified Portfolio with Improved Earnings Quality & Visibility Sustainable AOP & cashflow Strong contracts backlog with Broad policyholders base built Target opportunities with contribution driven by positive steady completion over the years with strong immediate cashflow & long-term econo
Slide 5: Resilient Recurring Business
Resilient Recurring Business Recurring businesses AOP1 (excluding Strategic Investments & Aviation) = ↑ 9% Overall ↓ 5% ↑ 4% ↑ 11% ↑ 5% ↑ 37% ↑ 9% HK$’M 3,802 3,494 1,808 1,710 972 1,075 801 835 562 592 (410) (649) Roads Construction (Hip Hing) 2 Insurance Logistics 3 Facilities Management FY2021 FY
Slide 6: Strong Balance Sheet & Stable Cash Flow for Future Investments
Strong Balance Sheet & Stable Cash Flow for Future Investments NWS Financial Position • Ample cash on balance sheet with HK$13.5Bn as at 30 Jun 2022 • Well supported by local and international banks with approx. HK$11.0Bn of unutilized committed banking facilities as at 30 Jun 2022 Current leverage
Slide 7: Thrive with Shareholders via Buyback & DPS growth
Thrive with Shareholders via Buyback & DPS growth 19 consecutive years of dividend & counting Continue to deliver value to shareholders & uphold our sustainable & progressive dividend policy Sustainable & progressive dividend policy on absolute DPS Share Repurchase Program DPS (HK$) Period (12 m
Slide 8: Financial Highlights
Financial Highlights 2021 2022 (HK$M) (HK$M) YoY For the year ended 30 June (restated) change % Revenue1 28,197 31,139 10 Attributable Operating Profit (AOP)2 5,249 4,371 17 • Impact of COVID-19 variants outbreak on Roads and Insurance segments in 2H FY22 Core Business 4,247 4,209 1 • Significant re
Slide 9: Performance by Segment
Performance by Segment 2021 2022 YoY change For the year ended 30 Jun (HK$M) (HK$M) % • Outbreak of COVID-19 variants in the Mainland in 2H FY22 (restated) • Temporary partial prohibition of type 5 & 6 Roads 1,807.5 1,709.9 (5) trucks on Hangzhou Ring Road & power Core Business crunch Aviation (only
Slide 10: Core Business
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Slide 11: Roads: Value Accretive Acquisitions & Positive Long-Term Growth Prospects
Roads Value Accretive Acquisitions & Positive Long-Term Growth Prospects Segment AOP ► Acquisition of 2 expressways with immediate AOP and cash flow to the Group brings total HK$M portfolio to reach c.1,000km in length YoY 1,808 ↓ 5% 1,710 1 At least 25% stake in Laogu Expressway (老谷高速公路) in Hubei
Slide 12: Roads Outlook
Roads Outlook • Actively targeting value-adding investment opportunities for our road portfolio to enjoy long-term growth potential • New source of income stream such as opening of Zhiyi West Lake Service Area in Hangzhou in 2H 2022, which incorporated AI technology such as un-manned hotels and conv
Slide 13: Prime Contractor Defying Challenges with Sanguine Outlook
Construction - Hip Hing Construction (100%) & Investment in Wai Kee (c.11.5%) Prime Contractor Defying Challenges with Sanguine Outlook Segment AOP Hip Hing HK$M ► Hip Hing Group AOP +4% to HK$834.5M yoy, mainly due to increase in profit recognition of Wai Kee govt projects with price fluctuation cl
Slide 14: Construction Outlook
Construction Outlook • HK Govt pledged to resolve housing supply shortage via increase in public & private housing supply and develop Northern Metropolis which would bolster the mid- to long-term supply of contracts from Govt and the private sector. • Use of various innovative measures such as conti
Slide 15: Insurance: Products & Innovation Propelling Growth
Insurance Products & Innovation Propelling Growth Segment AOP ► Continued to fortify insurance product offerings1 with improved health protection, profitability HK$M and social elements to cater to the needs of people in HK market YoY ↑ 11% 972 1,075 ► Gross written premium +30% to HK$13,316.8M, wit
Slide 16: Insurance Outlook
Insurance Outlook • Increasing demand for higher level of health & protection coverage and strong pent-up demand from Mainland visitors are set to create strong potential demand • Leverage technology & innovation to improve customer experience, explore new distribution channel and deepen collaborati
Slide 17: Strategic Portfolio
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Slide 18: Logistics: New Acquisitions Lay Strong Foundation for Future Expansion
Logistics New Acquisitions Lay Strong Foundation for Future Expansion Segment AOP HK$M ► Expanding footprint in Logistics via acquisitions YoY XCTG • Acquisition of a portfolio of 6 logistics properties in Chengdu & Wuhan for RMB2,290M ↓ 11% (c.HK$2,663M) & formation of an 50/50 operating manager JV
Slide 19: Logistics (Cont'd): New Acquisitions Lay Strong Foundation
Logistics (Cont’d) New Acquisitions Lay Strong Foundation for Future Expansion ► CUIRC grew remarkably • AOP +16% yoy, fuelled by service diversification, strong demand for cross-border logistics and sound operating network • Throughput continued to improve by 4% yoy in 2H FY22 (vs. 1H FY22 -8% yoy)
Slide 20: Logistics Outlook
Logistics (Cont’d) Outlook • ATL – remain as the preferred storage facilities for current & potential tenants & bolster its positive rental outlook • Newly acquired logistics properties - further ramp up of occupancy rate of the 5 operating logistics properties & the 6th property (operational in 2H
Slide 21: Facilities Management: Continuous Improvement in Performance
Facilities Management Continuous Improvement in Performance Segment AOP ► GHK Hospital – Maintained a strong revenue growth trajectory & AOL further improved HK$M YoY • Outpatient & inpatient admission +26% & +14% yoy ↑ 37% • Regularly utilized beds increased to 264 (FY21: 210) • Average occupancy r
Slide 22: Facilities Management Outlook
Facilities Management Outlook • GHK – keen demand for quality healthcare service in HK, continuous ramp up & further exploration of collaboration & business opportunities within NW Group’s ecosystem are set to create additional growth potential • HKCEC – continual resumption of regional expos & loca
Slide 23: Disposal of Commercial Aircraft Leasing Business
Aviation Disposal of Commercial Aircraft Leasing Business Segment AOP (11 months in FY2022) HK$M Transaction Goshawk Aviation Ltd (“GAL”) announced on 16 May 2022 to dispose of all of its YoY aircraft leasing business via the sale of Goshawk Management Ltd (“GML”) ↑ 3% (except for the 6 aircraft lea
Slide 24: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG)
Slide 25: ESG Ratings and Recognitions (as of Jun 2022)
ESG Ratings and Recognitions (as of Jun 2022) Brand Story INVEST FOR PURPOSE Overall Rating: AA+ Upgrade to “A” from “BBB” Sector ranking • Sustainable Business • Employer of Choice Listed on Hang Seng Corporate 35 out of 298 Award Award Sustainability Benchmark Index for 12th consecutive year since
Slide 26: Climate Resilience Measures
Climate Resilience Measures Brand Story INVEST Key Initiatives in place in FY22 FOR Became one of the 1st batch of signatories of the Carbon Neutrality Partnership of HKSAR in Oct 2021 PURPOSE NWS’ sustainability financial transactions totalled >HK$4.49Bn as of 30 Jun 2022 Sustainability Forum
Slide 27: Community Support during 5th Wave of COVID-19 Outbreak
Community Support during 5th Wave of COVID-19 Outbreak Brand Story INVEST Leveraged the network and resources of NWS against COVID-19 FOR • Donated >10,000 anti-epidemic items, e.g. Oximeters/ PPEs through Hong Kong’s first crowd- PURPOSE donation platform “SHARE FOR GOOD” from New World Group • Gle
Slide 28: Sustainability-linked Financing
Sustainability-linked Financing Brand Story INVEST FOR PURPOSE NWS First Sustainability-linked Loan Total amount of sustainability-linked HK$1.0Bn with Crédit Agricole Corporate and Investment Bank financing as of 30 June 2022 c.HK$4.5Bn 2020 2022 2021 Five additional sustainability-linked financing
Slide 29: Environmental Targets
Environmental Targets Brand Story INVEST FOR ↓ 50% ↓ 50% ↓ 30% ≥ 90% PURPOSE Y-o-Y 10% 19% 27% Achieved (vs. FY21) On Track On Track On Track On Track Social Targets Maintain Lost-Time Injury Rate (“LTIR”) Enhance quality of life of >17 below 3.0 per 100 Employees million beneficiaries On Track On T
Slide 30: Climate Actions in Road Operation
Climate Actions in Road Operation Brand Story INVEST FOR • MOU with PowerChina and CHN Energy PURPOSE Accelerate R&D in New Energy Applications • • Developed patent in Anti Glare Solar Panel, noise barrier • Hangzhou West Lake Service Area • Aspiring to be the first LEED certified of service area in
Slide 31: FTLife ESG Journey Framework
FTLife ESG Journey Framework Brand Story INVEST FOR PURPOSE • Formulated ESG Framework • Sustainable Finance: • Investment screening and exclusion guidelines –scrutinize the securities in the actively managed portfolios and exclude the companies whose 70% or more of their revenues coming from coal m
Slide 32: Climate Action in Facility Management of HML
Climate Action in Facility Management of HML Brand Story INVEST Decarbonisation Strategy FOR PURPOSE 5- Year Advancement Project Infrastructure Upgrade On-going Practises (since 2019) • Revamp of smart Building Energy • Installation of solar power for feed- • Replacement of Chillers System in Tariff
Slide 33: Appendices
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Slide 34: Corporate Structure
Corporate Structure Chow Tai Fook (Holding) Limited 17.HK 1929.HK Market Cap: HK$56Bn Market Cap: HK$152Bn Appendix 825.HK Market Cap: HK$1.4Bn 659.HK Market Cap: HK$27.8Bn 34 Note: Market cap as at 30 Sep 2022
Slide 35: AOP by Segment and Geography
AOP by Segment and Geography Core Business Others represents 84.6% of AOP 15% Mainland China 46% FY21 Hong Kong 39% Appendix 39.1% 24.6% 20.9% 13.6% 11.7% 2.8% -9.4% Others -3.2% 17% Roads Construction Insurance Logistics Aviation* Strategic Discontinued Portfolio Operations FY22 Mainland China 41%
Slide 36: Roads Portfolio to Reach c.1,000km
Roads Portfolio to Reach c.1,000km1 ROADS Guangdong Zhejiang Hubei Tianjin Shanxi Hunan Guangxi # of Roads 7 1 2 1 3 2 1 Appendix Length 313.9 km 103.4 km 137.36 km 60.67 km 76.52 km 89.08 km 198 km Concession Expiry 2023–2035 2029 2040-2050 2039 2023–2025 2039-2043 2045 FY22 Cumulative Average Dail
Slide 37: Prime Construction Company in HK
Prime Construction Company in HK CONSTRUCTION Contracts On Hand (HK$Bn) Construction Backlog (HK$Bn) 26% 70 62 65 60 31% 49 55 37 70 65 50 60 45 28 55 50 40 45 35 Areas of Expertise 40 30 35 30 25 25 20 20 15 15 10 10 Building 5 0 5 Appendix 0 30 Jun 2021 30 Jun 2022 30 Jun 2021 30 Jun 2022 Foundati
Slide 38: Investment Portfolio (As of Jun 2022)
Investment Portfolio (As of 30 Jun 2022) INSURANCE Investment Portfolio AUM* (HK$'M) Asset Types 58,713 55,670 Fixed Income 50,748 72% Other Equities & Public Assets & Investment Funds Appendix Cash 12% 2020 2021 2022 10% Private Funds * Exclude Investment-Linked Assurance Scheme business 6% Geograp
Slide 39: Investments in Logistics in Greater China
Investments in Logistics in Greater China LOGISTICS 6 logistics properties in Investments in: Chengdu & Wuhan • ANE (Cayman) Inc. • Total gross leasable area: CUIRC • Worldex (全球捷運) 531,000 sqm • JV with China State Railway Group, Urumqi Jilin • 5 out of 6 properties were PSA, CIMC & Deutsche Bahn I
Slide 40: Thank you
———a AT 32 NWS Thank you
Slide 41: Disclaimer
Disclaimer NWS Holdings Limited (“NWS”) makes no representation or warranty of any kind, express, implied or statutory regarding the accuracy or completeness of the information contained. It is not the intention to provide, and you may not rely on this presentation as providing, all material informa