New World Development Co. Ltd. · HKEX:17
New World Development — FY2020 Earnings Presentation
19 slides from New World Development's earnings presentation, Sep 30, 2020
Slide 1: FY2020 Annual Results
FY2020 ANNUAL RESULTS Press Release 30 September 2020 WE C R E A T E , WE A R E A R T I SA N S , WE A R E C S V. 0
Slide 2: 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
Slide 3: Why NWD?
WHY NWD? Strong resilience with growth potentials amidst challenging environment NATIONAL FOOTPRINT OF K11 WITH VISIBLE PIPELINE AND RECURRING INCOME GROWTH GFA 3x within 5 years & teens CAGR growth in income EARLIEST AND DOMINANT LEADER IN GBA AMONG HONG KONG DEVELOPERS Stable average contracted sa
Slide 4: Financial Review
WE CREATE, WE ARE ARTISANS, WE ARE CSV. SECTION ONE FINANCIAL REVIEW 3
Slide 5: FY2020 Summary Financials
FY2020 SUMMARY FINANCIALS Resilient financial positions and stable dividend despite challenging operating environment HK$59,008M HK$6,589M HK$2.04 / share REVENUES UNDERLYING PROFIT FULL YEAR DPS -23.1% YoY -25.2% YoY Maintained HK$67,436M HK$39,303M HK$10.6B TOTAL CASH & UNDRAWN LINES BANK BALANCES
Slide 6: Increasing GBA Exposure with Margin Uplift
PROPERTY DEVELOPMENT INCREASING GBA EXPOSURE WITH MARGIN UPLIFT GBA gross margin at 70% SEGMENT RESULTS 15,037 Significant growth in GBA projects 11,002 7,970 2,592 Revenues and segment results from GBA up 45% and up 73% 8,410 respectively 7,068 FY2019 FY2020 Hong Kong Mainland China GROSS MARGIN Si
Slide 7: Strong Contracted Sales Performance
PROPERTY DEVELOPMENT STRONG CONTRACTED SALES PERFORMANCE Target average HK$20B p.a. in Hong Kong and teens CAGR growth in China HONG KONG MAINLAND CHINA High quality build command pricing Outstanding residential ASP of RMB38,000/sqm premium; (+23% YoY); High scarcity value for prime locations Strong
Slide 8: Growth Driven by K11 MUSEA and K11 Atelier King's Road
PROPERTY INVESTMENT GROWTH DRIVEN BY K11 MUSEA AND K11 ATELIER KING'S ROAD +33% gross rental income growth and +50% segment results growth in Hong Kong GROSS RENTAL INCOME The respective commencement of operation of K11 MUSEA & K11 4,350 +19% ATELIER King’s Road commenced 3,669 operations in August
Slide 9: Steady Pipeline Growth of K11 and Other IP
PROPERTY INVESTMENT STEADY PIPELINE GROWTH OF K11 AND OTHER IP Strong pipeline in Hong Kong / China (GFA = 3.0x in 5 years) supporting recurring income growth HONG KONG GFA (sqm, 813 rounded K11 MUSEA to '000) K11 ARTUS 57 K11 ATELIER King’s Road 383 321 52 West Kowloon Kai Tak Office Sports Park SK
Slide 10: Non-Core Disposals Exceeded Target
FINANCIAL & CAPITAL MANAGEMENT NON-CORE DISPOSALS EXCEEDED TARGET Crystallisations of asset value through non-core disposals NON-CORE DISPOSALS (HK$B) Completed HK$10.6B non-core disposals in FY2020, exceeding target 10.6 KEY DISPOSALS 9.0 NWD – Interests in Eight KWAI FONG + Shun Tak : HK$3.6B NWD
Slide 11: Sustainable Dividends
FINANCIAL & CAPITAL MANAGEMENT SUSTAINABLE DIVIDENDS Maintained at HK$2.04/share DIVIDEND PER SHARE (HK$) despite challenging market Sustainable and progressive dividend environment coupled with active capital management Announced DIVIDEND FLOOR at boost investment stability and confidence HK$2.04/s
Slide 12: Operational Review
WE CREATE, WE ARE ARTISANS, WE ARE CSV. SECTION TWO OPERATIONAL REVIEW 11
Slide 13: K11: Grabbing Market Share with Record High Sales
PROPERTY INVESTMENT K11: GRABBING MARKET SHARE WITH RECORD HIGH SALES Fully capturing "revenge spending" from pent-up demand across multiple cities K11 MUSEA "OUR MUSE SHOPPING FESTIVAL“ & K11 “SHOPATHON” Muse Festival Strong Performance HK$300M+ September Retail Sales +2x MoM & +1x YoY 12
Slide 14: K11 MUSEA: One Year Anniversary (Cont'd)
PROPERTY INVESTMENT K11 MUSEA: ONE YEAR ANNIVERSARY (CONT'D) Creating multiple new sales channels for the "New Normal" F&B ORDERING E-SHOP Partner with all food delivery vendors The 1st fully integrated platform to drive O2O2O ONE-CLICK SA SERVICE K DOLLAR LIVE STREAMING (VIDEO) First mall in HK to
Slide 15: K11: Superior Performance vs Market
PROPERTY INVESTMENT K11: SUPERIOR PERFORMANCE VS MARKET K11 RETAIL SALES PERFORMANCE VS AVERAGE RETAIL MARKET Q2 vs Q1 2020 FY2020 vs FY2019 +85% 45% 35% +19% +11% -2% -7% -27% Hong Kong K11 MUSEA China K11 Malls Hong Kong K11 Malls China K11 Malls Hong Kong Average China Average Hong Kong Average C
Slide 16: Maintain Leadership in GBA Among Hong Kong Peers
PROPERTY DEVELOPMENT MAINTAIN LEADERSHIP IN GBA AMONG HONG KONG PEERS Earliest and dominant leader in the GBA among Hong Kong developers HEAVILY INVESTING IN THE GBA FOCUS ON OLD CITY REDEVELOPMENT Before "GBA" was even official Prime location, limited supply, lower costs FY2020 FY2022 FY2023 FY2024
Slide 17: Integrated Ecosystem Boosting Customer Value
STRATEGIC INITIATIVES INTEGRATED ECOSYSTEM BOOSTING CUSTOMER VALUE Making life and work better through intelligent buildings ONE ECOSYSTEM Living Safety Health Sustainability “To experience life to “To feel safe & secure” “To stay healthy” “To contribute back to the fullest” Planet Earth” Retail Off
Slide 18: ESG Integration at International Best Practice Level
STRATEGIC INITIATIVES ESG INTEGRATION AT INTERNATIONAL BEST PRACTICE LEVEL Creating Shared Value (CSV) for all stakeholders SMART Governance Design & Build • SV2030 Green, Wellness, Caring targets set for Sustainable Financing CEO & staff Operate • Launching ESG Board Engage training CREATING SHARED
Slide 19: Thank You / Q&A
WE CREATE, WE ARE ARTISANS, WE ARE CSV. THANK YOU / Q&A 18
New World Development Company — FY2020 Earnings Presentation on 6ix