Slide 1: FY14 Annual Results Presentation
FY14 Annual Results Presentation 18th March 2015 1
Slide 2: Agenda
1. Results Highlights 2. Hong Kong Portfolio 3. China Portfolio 4. Financial Position 5. Appendix 2
Slide 3: 1. Results Highlights
1. Results Highlights Kerry Properties Lien RRRRARAA
Slide 4: Results Highlights
Results Highlights 1. Total contracted sales $14.7B, +23% beyond target of $12B 2. PRC recurrent revenue +99% to $3.5B and recurrent gross profit +128% to $1.9B 3. Occupancy rate of Jing An Kerry Centre Ph 1&2, excluding hotel, reached 90% as of 31 December, 2014.Total annual rental revenue surpasse
Slide 5: Results Highlights: Profit and Asset Contributors
Results Highlights HK property sales and PRC property rental are the main asset and profit contributors PRC completed IP PRC property HK residential 24% rental 29% 31% HK property sales 47% FY14 FY14 Gross Profit Gross Asset Value $6,208M PRC property $100,358M sales 12% HK commercial 11% PRC PUD an
Slide 6: FY14 Total Recurrent Revenue $4.4B, +62% YoY
Results Highlights FY14 Total Recurrent Revenue $4.4B, +62% YoY 5,000 FY14 Turnover breakdown 4,500 4,390 $15B 875 4,000 20% 3,500 HK 2.4x in 5 yrs 3,000 2,705 Recurrent PRC 30% 2,500 70% 936 Non-recurrent 2,114 35% 2,000 1,914 1,829 3,515 845 701 771 80% 1,500 40% 40% 38% PRC HK 1,000 1,769 45% 55%
Slide 7: Results Highlights
Results Highlights HK$ million Turnover Gross Profit Gross Margin FY2014 FY2013 Change FY2014 FY2013 Change FY2014 FY2013 Property sales 10,274 11,265 -9% 3,659 4,483 -18% 36% 40% HK N1 7,132 7,194 -1% 2,900 2,836 +2% 41% 39% PRC N2 3,142 4,071 -23% 759 1,647 -54% 24% 40% Property rental 3,169 2,147
Slide 8: Financial Summary
Financial Summary HK$ million FY2014 FY2013 Change Turnover 14,664 13,970 +5% Gross profit 6,208 6,057 +2% Underlying profit 4,384 4,413 -0.7% Net increase in fair value in investment properties 2,390 4,416 -46% Gain arising from the spin-off of Kerry Logistics Shares - 4,325 n/a Reported profit 6,7
Slide 9: 2. Hong Kong Portfolio
2. Hong Kong Portfolio 9
Slide 10: HK Land Bank
HK Land Bank HK Land bank Attributable GFA (‘000 s.f) Hotel 1% Completed Investment Properties Commercial 22% Residential Commercial 1,223 49% Office 838 5.6M s.f in attributable Apartment 722 GFA Residential properties under development 2,728 Office 15% Completed properties held for sale 81 Service
Slide 11: HK Property Sales – Solid Sales Performance
HK Property Sales – Solid Sales Performance 2014 new launches The Summa, 8 LaSalle, Sai Ying Pun Ho Man Tin Launched: Jan-2014 Launched: Oct-2014 KPL’s interest: 71% KPL’s interest: 100% Total units: 168 Total units: 56 Completed in end-2013 Completion: 2014 • Sold 71% or 40 units accumulatively • 1
Slide 12: HK Property Sales
HK Property Sales FY2014 Contracted Sales Record-high of $11.1B , including the disposal of Lion Rise Mall for $1.4B Saleable Area Sold Approx. 569,000 s.f Sold 821 units, with 803 units of new launches from The Summa, Dragons Range, Three Key Properties Sold Ede Road, and 8 LaSalle Total Recognized
Slide 13: HK Property Sales
HK Property Sales ~1,500 units of saleable resources in 2015 Existing projects for sale in 2015: KPL’s Total Units launched Units Sold Remaining interest (%) units in 2014 in 2014 units a/f 2014 Dragons Range 40% 973 668 573 400 1& 3 Ede Road 100% 41 30 29 12 8 La Salle 100% 56 56 35 21 Total 433 Up
Slide 14: HK Investment Properties – steady cash flow
HK Investment Properties – steady cash flow Gross rental revenue: $964M (includes attributable rental income from major property from associate) $ million Apartment Office Commercial Prop mgmt, carparks and others 1,015M 964M Drop in apartment rental revenue was mainly due to the major renovation of
Slide 15: 3. China Portfolio
3. China Portfolio 15
Slide 16: PRC Major Completed Investment Properties Performance
PRC Major Completed Investment Properties Performance Promising rental yield on cost at “Kerry” flagships Gross rental revenue: $2.5B Beijing Kerry Centre (includes attributable rental income from associate) Enhanced rental performance after renovation • Attri. GFA: 1.6 million s.f Prop mgmt, carpar
Slide 17: Next in the Pipeline: Tianjin Kerry Centre
Next in the Pipeline: Tianjin Kerry Centre Arcadia Court T1-3 (residential for sale) Prime location with direct access to Metro Line 9 Shangri-La Hotel Riverview Place (shopping mall) Project Summary • Mixed-used development located on the east bank of the Haihe Total gross Total: 508,000 (including
Slide 18: Next in the Pipeline: Kerry Central, Hangzhou
Next in the Pipeline: Kerry Central, Hangzhou Set to be the new landmark in Hangzhou Project Summary • Mixed-use property situated at the intersection of Yan’an Road and Qingchun Road in Hangzhou Total gross development Total: 340,000 s.m area (including basement area) • Comprise a luxury hotel, Gra
Slide 19: Kerry Central, Hangzhou
Kerry Central, Hangzhou Core of Hangzhou Located at the intersection of Shangcheng and Xiacheng District 5 minute walk to West Lake, and bordered by Yan’an Road and Qingchun Road, these two main avenues pulsates with Hangzhou’s beat of life Direct access to the Metro Line 1 (operating) and Line 2 (o
Slide 20: PRC Property Sales
PRC Property Sales FY2014 FY2013 A change of product mix in FY14 vs. FY13 RMB 2.9B RMB 4.1B Contracted Sales (or $3.6B) (or $5.2B) Major Projects Sold ASP achieved (RMB psm) GFA Sold 227,000 s.m 266,000 s.m FY14 Putian Arcadia Court 9,500 – 16,200 Chengdu Arcadia Court Ph 1 Shenyang Arcadia Court Av
Slide 21: PRC Land Bank
PRC Land Bank PRC Land bank Attributable Hotel GFA 12% (‘000 s.f) Commerical 14% Completed investment properties 6,318 45.1M s.f Commercial 1,474 attributable GFA Residential 51% Office 3,793 Office Apartment 1,051 20% Service Properties under development 34,567 apartment 2% Completed properties for
Slide 22: 4. Financial Position
4. Financial Position 22
Slide 23: Financial Position
Financial Position As at 31 As at 31 Debt Maturity Profile $ million Dec 2014 Dec 2013 Change Total Debt : $34,239 M Total Debt 34,239 34,976 -2% HK$ million Fixed Rate Bonds Cash and bank balance 11,392 11,494 -1% Bank Loans 3,253 Net Debt 22,847 23,482 -3% Undrawn bank loan 13,840 11,181 +24% faci
Slide 24: 5. Appendix
5. Appendix a. Total Lank Bank b. HK Property – 2014 Contracted Sales c. PRC Property – 2014 Contracted Sales d. PRC Property – Investment Property Portfolio e. Jing An Kerry Centre, Shanghai f. Kerry Parkside, Shanghai g. Shenzhen Kerry Plaza h. Beijing Kerry Centre i. HK Properties Under Developme
Slide 25: a. Total Land Bank
a. Total Land Bank Total Property Portfolio Attributable GFA: Approx. 55.7M s.f. (as of 31 Dec 2014) Overall – By Type Overall – By Location PUD 73% Held for sale 3% Macau 4% Hotel 4% Overseas 9% PRC 77% HK 10% Completed IP 20% PUD – By Location PRC PUD – By Usage Macau 6% Hotel 9% Overseas 8% Apart
Slide 26: b. HK Property – 2014 Contracted Sales
b. HK Property – 2014 Contracted Sales Projects on sale First KPL’s Total Units Units Remaining ASP Attri sales Completion launched interest units launched / Sold in 2014 stock* achieved proceeds (%) inventory in (units) HK$ psf HK$ bn 2014 2014 new launches 1 The Summa Jan-2014 71 168 168 168 - 25,
Slide 27: c. PRC Property – 2014 Contracted Sales
c. PRC Property – 2014 Contracted Sales Name Product type Attributable Attributable Avg. Selling KPL’s Contracted GFA Sold Price interest Sales s.m achieved RMB’M RMB psm KEY PROJECTS SOLD 1 Putian Arcadia Court R 570 60,000 9,500 60% 2 Shenyang Arcadia Court & Enterprise Square R/O 505 28,000 18,00
Slide 28: d. PRC Property – Investment Property Portfolio
d. PRC Property – Investment Property Portfolio FY14 GFA & Occupancy Attri GFA (000s s.f.) Beijing Shanghai Shenzhen Fuzhou Total Weighting % Occupancy rate Office 711 1,530 1,552 --- 3,793 60% 95% Commercial 98 1,100 212 64 1,474 23% 97% Serviced Apartment 277 774 --- --- 1,051 17% 81% Total 1,086
Slide 29: e. Jing An Kerry Centre, Shanghai
e. Jing An Kerry Centre, Shanghai Occupancy at period end 94% 94% 86% 88% 83% 79% 65% 43% 44% 37% Office (Phase 1) Office (Phase 2) Retail (Phase 1&2) Apartment Hotel As of Dec 31, 2013 As of Dec 31, 2014 Gross GFA Total : 3.7M • Located in the heart of Shanghai’s Nanjing Road business district (s.f
Slide 30: f. Kerry Parkside, Shanghai
f. Kerry Parkside, Shanghai Occupancy at period end 100%100% 100%100% 89% 79% 66% 58% Office Retail Apartment Hotel As of Dec 31, 2013 As of Dec 31, 2014 • Mixed-used property comprising a hotel, offices, serviced apartments and retail Gross GFA (s.f.) Total : 2.7M • Situated at the coveted location
Slide 31: g. Shenzhen Kerry Plaza
g. Shenzhen Kerry Plaza Occupancy at period end 97% 98% 98% 81% Phase I Office Phase 2 Office As of Dec 31, 2013 As of Dec 31, 2014 Gross GFA (s.f.) Total: 1.7M Office: 1.6M (3 towers) Retail: 0.1M • 3 Grade-A office towers located at the core of Futian CBD KPL’s Interest 100% • Conveniently connect
Slide 32: h. Beijing Kerry Centre
h. Beijing Kerry Centre Occupancy at period end 97% 99% 96% 86% 79% 74% 56% 0% Office Retail Apartment Hotel As of Dec 31, 2013 As of Dec 31, 2014 Gross GFA Total : 2.2M • Continues to be an iconic presence at the heart of Beijing (s.f.) Retail : 0.1M • Located in the Chaoyang district, the city's d
Slide 33: i. HK Properties Under Development
i. HK Properties Under Development Currently, KPL has approximately 3.1 M s.f of properties under development in HK and Macau Name Location Type Stage of Completion Expected KPL’s Buildable Completion Intere GFA* st (%) (s.f.) FOR SALE PROPERTIES 1 Dragons Range Sha Tin R Superstructure work in 2Q-3
Slide 34: j. PRC Properties Under Development
j. PRC Properties Under Development Currently, KPL has approximately 35 M s.f of properties under development in China Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) MIXED USED DEVELOPMENT 1 Tianjin Kerry Centre Tianjin R/C/O/A Ph 1 – Comp
Slide 35: j. PRC Properties Under Development (con’t)
j. PRC Properties Under Development (con’t) Currently, KPL has approximately 35 M s.f of properties under development in China Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Intere Attributable st (%) GFA (s.f.) FOR SALE PROPERTIES 8 Tangshan Arcadia Court Tangshan R/H/C Resi
Slide 36: j. PRC Properties Under Development (con’t)
j. PRC Properties Under Development (con’t) Currently, KPL has approximately 35 M s.f. of properties under development in China Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) FOR SALE PROPERTIES (con’t) 18 The Metropolis – Arcadia Chengdu
Slide 37: Disclaimer
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 information,