Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — Merger or Acquisition (May 2022)
25 slides from Ctf Services's merger presentation, May 16, 2022
Slide 1: Value creation through portfolio optimization
New World Group Member Value creation through portfolio optimization 16 May 2022 |RESTRICTED|
Slide 2: Summary of the 3 Transactions
Summary of the 3 Transactions Roads Logistics Aviation Acquisition Disposal Announcement date 26 April 2022 16 May 2022 16 May 2022 Acquisition of 40% stake in 1. Acquisition of 6 logistics Disposal of all of aircraft leasing Guigang-Wuzhou Expressway properties in Chengdu & Wuhan business (50% NWS/
Slide 3: Transactions Rationale and Benefits
Transactions Rationale and Benefits 1 Timely exit with good valuation from aircraft leasing business with higher risk and uncertainties in its recovery − Uncertainties and volatilities caused by macro factors such as changes in interest rate and COVID-19 2 Enhanced earnings quality of business portf
Slide 4: Corporate Strategy Evolution & Optimizing Business Portfolio
Corporate Strategy Evolution & Optimizing Business Portfolio FY2018 FY2019 FY2022 Infrastructure Core Business Core Business Roads Aviation Environment Logistics Roads Aviation Construction Insurance Roads Construction Insurance Sustainable & Progressive Services Strategic Portfolio Dividend Policy
Slide 5: Improving Earnings Quality and Visibility from Increasing Contribution from Core Business
Improving Earnings Quality and Visibility from Increasing Contribution from Core Business (Roads, Construction & Insurance) AOP Breakdown FY2019 1H FY2022 1H FY2022* Logistics 14% Facilities Mgt -8% Logistics 12% Environment 6% Facilities Mgt -7% Strategic Inv. -3% Environment 4% Strategic Inv. -2%
Slide 6: Roads
Transaction Overview Roads |RESTRICTED|
Slide 7: Acquisition of Guiwu Expressway
Roads Acquisition of Guiwu Expressway Transaction Highlight Guilin Announcement date 26 April 2022 Shaoguan Project name Guiwu Expressway 貴梧高速 Location Guangxi Zhuang Autonomous Region Liuzhou Hezhou (between Guigang and Wuzhou) Length 198km Qingyuan No. of lanes Dual 2 lanes Wuzhou Concession expir
Slide 8: Guiwu Expressway – Quality Road Asset with Ample Growth Potential
Roads Guiwu Expressway – Quality Road Asset with Ample Growth Potential 1 Enrich road portfolio with immediate AOP contribution and cash inflow 2 Long remaining concession period of 23 years further lengthened average remaining concession period of road portfolio ‒ Average remaining concession perio
Slide 9: Economic Overview of the Guigang & Wuzhou area
Roads Economic Overview of the Guigang & Wuzhou area Optimistic traffic and revenue growth outlook driven by 1) The outperforming national level GDP growth of Guigang and Wuzhou area 2) Fast-growing car ownership number in Guigang and Wuzhou area with double digit CAGR in 2012-2020 9
Slide 10: Logistics
Transaction Overview Logistics |RESTRICTED|
Slide 11: Acquisition of a Portfolio of Logistics Properties in Chengdu & Wuhan
Logistics Acquisition of a Portfolio of 6 Logistics Properties in Chengdu & Wuhan Transaction Highlight Announcement date 16 May 2022 50% 50% Transaction structure 1) Acquisition of six logistics properties in Chengdu & Wuhan (the “Portfolio”) 2) Formation of an operating manager joint venture (50/5
Slide 12: Tapping the Burgeoning Logistics Sector in Central & Western Logistics Hubs
Logistics Tapping the Burgeoning Logistics Sector in Central & Western Logistics Hubs 1 Quality and modern warehouses in locations with robust demand ‒ Brisk economic growth of Chengdu and Wuhan fuels logistics demand ‒ Superior location of warehouses warrants demand and rental growth ‒ Best in clas
Slide 13: High-quality Sizeable Acquisition Opportunity
Logistics High-quality Sizeable Acquisition Opportunity Sizeable portfolio in strategic locations – Chengdu & Wuhan • Chengdu and Wuhan have high economic and consumption growth and are important logistics hubs on new international land-sea trade corridor • The 5 properties in Chengdu and 1 proper
Slide 14: High-quality Sizeable Acquisition Opportunity (cont’d)
Logistics High-quality Sizeable Acquisition Opportunity (cont’d) Premium logistics properties with good operational metrics 90%+ average occupancy rate1 3.1 yrs weighted average lease expiry1 64% single level 36% double level with Single Level Warehouse Ramp Access to Double Level Efficient Vehicu
Slide 15: High-quality Sizeable Acquisition Opportunity (cont’d)
Logistics High-quality Sizeable Acquisition Opportunity (cont’d) Diversified mix of blue-chip tenants Breakdown by Tenant Industry1 Featuring anchor tenants from a diverse range of leading retail, e-commerce and 4% 3% logistics companies 5% 3PL 6% 37% Consumers & Retail E-commerce 19% ~25 Tenants
Slide 16: Overview of the Portfolio
Logistics Overview of the Portfolio Chengdu Airport Logistics Centre Longquan Logistics Centre City Chengdu City Chengdu Completion year 2019 Completion year 2018 GLA (sqm) 53,042 GLA (sqm) 77,783 Land Tenure Remaining (years) 41 Land Tenure Remaining (years) 41 Specifications Double-storey with ram
Slide 17: Overview of the Portfolio (Cont’d)
Logistics Overview of the Portfolio (Cont’d) Xindu North Industrial Park Xinjin Logistics Centre City Chengdu City Chengdu Completion year 2016 Completion year 2018 GLA (sqm) 71,413 GLA (sqm) 67,310 (Total) Land Tenure Remaining (years) 42 27,599 (Completed) + 39,711 (Land) Land Tenure Remaining (ye
Slide 18: Overview of the Portfolio (Cont’d)
Logistics Overview of the Portfolio (Cont’d) Xindu Logistics Centre Hannan Logistics Park City Chengdu City Wuhan Completion year Est. end of June 2022 Completion year 2016-2021 GLA (sqm) 92,756 GLA (sqm) 169,153 Land Tenure Remaining (years) 47 Land Tenure Remaining (years) 42 Specifications Double
Slide 19: Chengdu and Wuhan – Robust Demand for Logistics Properties
Logistics Chengdu and Wuhan – Robust Demand for Logistics Properties • Strong demand for logistics properties in the Mainland driven by modernizing logistics services, evolving manufacturing industry, high e-commerce penetration and shift to consumption-driven economy; while supply remains limited e
Slide 20: Market overview Chengdu Wuhan
Logistics Market overview Chengdu Wuhan • Chengdu’s economic growth is ahead of most cities in Western • Located at the juncture of Han River and Yantze River, Wuhan region of the Mainland. Steady increase in disposable income is the capital city of Hubei Province and the most populous city and cons
Slide 21: Aviation
Transaction Overview Aviation |RESTRICTED|
Slide 22: Goshawk Aviation’s Sale of its Aircraft Leasing Platform
Aviation Goshawk Aviation’s Sale of its Aircraft Leasing Platform Transaction Highlight Transaction date 16 May 2022 Transaction structure Goshawk Aviation Limited’s disposal of all of aircraft leasing business except for 6 aircraft related to Russian lessees (NWS 50% / Chow Tai Fook Enterprises 50%
Slide 23: Aviation - Timely Exit for Better Capital Redeployment
Aviation Aviation - Timely Exit for Better Capital Redeployment 1 Industry with uncertainties abound ‒ Uncertainties such as COVID-19 variants, rising interest rates and geopolitical tension are casting shadow on the recovery path and increasing risk, and are having a negative impact on the outlook
Slide 24: Thank You
a nr Bl 3 NWS Thank You New World Group Member
Slide 25: 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