Slide 1: Annual Results Presentation FY2003/04
Annual Results Presentation FY2003/04
Slide 2: Contents
Contents Î Corporate Structure Î NWSH Group Results Î NWSH Results by Division Î Service Management Î Infrastructure Management Î Ports Management Î Business Outlook Î Corporate Strategies 1
Slide 3: Corporate Structure
Corporate Structure Service Infrastructure Ports Management Management Management Facilities Roads & Bridges Container Handling Contracting Energy Logistics & Warehousing Transport Water treatment & Waste management Financial Environmental 2
Slide 4: Group Results
Group Results For the year ended 30 June 2004 *2003 Change (HK$M) (HK$M) +/ (-)% Turnover 12,553 5,770 118 AOP 1,903 946 101 Profit attributable to shareholders 1,538 1,193 29 Earnings per share HK$0.86 HK$1.36 (37) Dividend per share HK$0.25 HK$0.20 25 Total assets 23,915 27,218 (12) Shareholders’
Slide 5: AOP Mix
AOP Mix (for the year ended 30 June 2004) Ports HK$370M Service 20% HK$727M 38% Infrastructure HK$806M 42% Total: HK$1,903M 4
Slide 6: Disposals of Investment / Under-performing Projects
Disposals of Investment / Under-performing Projects Î Zhaoqing road & bridge projects ( ) Î Tianjin Yonghe Bridge ( ) Î Shunde Desheng Power Plant ( ) Î Suzhou Huisu International Container Freight Wharfs ( ) Î Land in NSA (Tianjin) International Cargo Distribution ( ( )) 5
Slide 7: Impairment on Investments
Impairment on Investments Î Sichuan Qianwei Dali Power Plant ( ) Î Land in Xiamen New World Xiangyu Warehouse & Processing Zone ( ) Î Goodwill of CSX World Terminals Hong Kong ( ) 6
Slide 8: Encouraging Progress in Debt Reduction
Encouraging Progress in Debt Reduction Net Debt 8.7 (HK$ billion) 6.9 5.7 4.6 Feb 03 Jun 03 Mar 04 Jun 04 Î Gearing ratio: 44% as at 30 June 2004 (2003: 64%) Î Cash on hand: HK$3.5 billion as at 30 June 2004 7
Slide 9: Results by Division: Service Management
Results by Division Service Management 8
Slide 10: AOP - Service
AOP - Service For the year ended 30 June 9
Slide 11: AOP - Service
AOP - Service For the year ended 30 June 2004 *2003 Change (HK$M) (HK$M) +/ (-)% Facilities 344.3 258.1 33 Contracting 253.6 253.3 - Transport 65.7 33.5 96 Financial, Environmental & Others 63.6 87.2 (27) TOTAL 727.2 632.1 15 * Restated 10
Slide 12: Operational Review - Service: Facilities
Operational Review - Service Facilities Cleaning, Guarding & Facility Management Property Management Others Î HKCEC attained excellent results: turnover up 31% Î Property management posted satisfactory results Î Cleaning companies achieved substantial profit growth Î Sky Connection was a solid contr
Slide 13: Operational Review - Service: Contracting
Operational Review - Service Contracting Construction E&M Engineering Î Hip Hing remained as a key profit contributor Î Proactively bidded civil engineering projects Î Strategic investment in Wai Kee brought in solid profits 12
Slide 14: Operational Review - Service: Transport
Operational Review - Service Transport Î Consolidation completed: 50% stake of Merryhill Group Î Recovery of bus patronage after SARS Î NWFF (Macau) had a 25% market share Î Launch of Kunming NWFB with immediate profit contribution 13
Slide 15: Operational Review - Service: Financial, Environmental and Others
Operational Review - Service Financial, Environmental and Others Î Tai Fook Securities posted substantial improvement Î Tricor achieved profitable growth Î Far East Landfill maintained stable performance 14
Slide 16: Results by Division: Infrastructure Management
Results by Division Infrastructure Management 15
Slide 17: AOP - Infrastructure
AOP - Infrastructure For the year ended 30 June 16
Slide 18: AOP - Infrastructure
AOP - Infrastructure For the year ended 30 June 2004 *2003 Change (HK$M) (HK$M) +/ (-)% Energy, Water Treatment & Waste Management 515.2 422.8 22 Roads & Bridges 291.0 346.3 (16) TOTAL 806.2 769.1 5 * Restated 17
Slide 19: Operational Review - Infrastructure: Energy
Operational Review - Infrastructure Energy Zhujiang Power Phase I & II Macau Power Î Zhujiang Power Phase I and II combined sales volume increased by 16% Î Macau Power electricity sales volume increased by 7% 18
Slide 20: Operational Review - Infrastructure: Roads and Bridges
Operational Review - Infrastructure Roads and Bridges Beijing-Zhuhai Expressway Guangzhou City Northern Ring Road (Guangzhou-Zhuhai Section) ( ) Î Guangzhou City Northern Ring Road toll income increased by 19% Î Beijing-Zhuhai & Tangjin expressways ( ) posted satisfactory results 19
Slide 21: Operational Review - Infrastructure: Water Treatment & Waste Management
Operational Review - Infrastructure Water Treatment & Waste Management Macao Water Chongqing Water Î Macao Water remained as key contributor Î Remarkable contribution from Chongqing Water Î New investments in Sanya, Hainan ( ) and Tanggu, Tianjin ( ) 20
Slide 22: Results by Division: Ports Management
Results by Division Ports Management 21
Slide 23: AOP - Ports
FY2003 FY2004 For the year ended 30 June Container Logistics & Warehousing © Total AOP 22
Slide 24: AOP - Ports
AOP - Ports For the year ended 30 June 2004 *2003 Change (HK$M) (HK$M) +/ (-)% Container Handling 186.5 240.4 (22) Logistics & Warehousing 183.4 156.5 17 TOTAL 369.9 396.9 (7) * Restated 23
Slide 25: Operational Review - Ports: Container Handling
Operational Review - Ports Container Handling CSX World Terminals HK (CT3) Xiamen Xiang Yu Quay CSX Orient (Tianjin) Î Fierce competition from Î Significant increase in Î Throughput growth by Shenzhen ports contribution by 85% 11% Î Lost a major customer in Î Throughput increased by March 2004 25% 2
Slide 26: Operational Review - Ports: Logistics & Warehousing
Operational Review - Ports Logistics & Warehousing ATL Logistics Centre Î Stable AOP Î Occupancy rate maintained at above 90% 25
Slide 27: Business Outlook
PRR Business Outlook
Slide 28: Outlook - Service
Outlook - Service • Facilities: – Strong growth potential – HKCEC Atrium Link extension • Contracting: – Well positioned to tap Mainland China market – Target projects outside HK - Beijing 2008 Olympics Games – Civil engineering bid for mass transit railway related projects in southern China • Trans
Slide 29: Outlook - Infrastructure
Outlook - Infrastructure • Energy – Demand & consumption in Guangdong Province continue to surge – Coal price pressure hinders profitability – Macau: electricity consumption increases • Roads & Bridges – Benefit from increase in car ownership – Road plan creates investment opportunities: new project
Slide 30: Outlook - Ports
Outlook - Ports • Hong Kong – Fierce competition from Shenzhen ports – Throughput drops & pressure on tariff – Vigorously seeking new customers for both CT3 & CT8W – Contribution expected to drop • Mainland China – Tianjin: remains as the gateway to northern China; benefit from 2008 Olympics – Xiame
Slide 31: Corporate Strategies
PRR Corporate Strategies
Slide 32: Corporate Strategies
Corporate Strategies Î Continue to consolidate businesses & enhance synergy Î Seek growth in Pearl River Delta including Hong Kong, Macau & Guangdong Province Î Leverage on the Group’s expertise to seek expansion Î Uphold service excellence & corporate branding Î Invest in human capital Î Promote co
Slide 33: Pledge of Excellence
Pledge of Excellence Î Rank 50th among HK listed companies in terms of market capitalization as at 11 October 2004 Î Rank about 40th among HK listed companies in terms of profitability Î A constituent stock of ÎHang Seng HK MidCap Index ( ) since Feb 2004 ÎFTSE Asia Pacific Ex-Japan Index ( ( )) sin
Slide 34: Stock Closing Price (Jul 03 – Oct 04)
Stock Closing Price (Jul 03 – Oct 04) (HK$) 11.15 12.00 11.00 10.00 9.00 8.00 7.00 6.00 5.00 3.575 4.00 3.00 Jul-03 2003 Nov-03 Sep-03 Jan-04 Mar-04 2004 Jul-04 May-04 Sep-04 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 33
Slide 35: A Responsible Employer
A Responsible Employer Number of staff in HK, Macau and Mainland China Service 33,418 Infrastructure 8,593 Ports 1,283 Total: 43,294 (As at 30 June 2004) 34
Slide 36: photo
photo 35
Slide 37: Driving Forward Seeking Excellence
Driving Forward Seeking Excellence 36