Slide 1: 2018 Final Results
Incorporated in the Cayman Islands with limited liability A company listed on the Hong Kong Stock Exchange Stock Code: 806.HK 2018 Final Results For the year ended 31 December 2018 Results Presentation, 12 March 2019
Slide 2: Disclaimer
Disclaimer This document has been prepared by Value Partners Group Limited (the "Company") solely for use at the presentation. The information contained in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should
Slide 3: Financial highlights
Financial highlights By Icy WONG Chief Financial Officer 3
Slide 4: Financial highlights
Financial highlights (In HK$ million) 2018 2017 Change Profit attributable to owners of the Company 229.5 2,048.1 -89% Fee income and other revenue 1,641.4 4,105.9 -60% Gross management fees 1,347.5 1,196.0 +13% Gross performance fees 56.2 2,570.9 -98% Total expenses (535.0) (1,091.8) -51% Operating
Slide 5: Assets under management
Assets under management Assets under management (“AUM”) (US$ billion) 20 16.6 Major reason for 15.6 13.2 15.0 AUM decrease 15 12.9 • Strong inflows of 10 US$1.2 billion 5 • Weak performance of (US$2.1 billion) 0 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 AUM change in the year 2018 Beginning AUM 1
Slide 6: AUM analysis
AUM analysis 1. AUM as at 31 December 2018 and 31 December 2017 6
Slide 7: Stringent cost control
Stringent cost control Total expenses Fixed cost coverage ratio (HK$ million) (HK$ million) 26 1,092 Total 1000 expenses 1000 16 800 800 769 692 600 706 2.3x 2.2x 600 535 18 114 19 400 400 27 49 357 96 119 309 200 Fixed 200 expenses 238 213 0 0 2017 2018 2017 2018 Others Sales and marketing 1 Other
Slide 8: Dividends
Dividends (HK cents) 104% 101% 101% 120 54% 64% 40% 40% 34% 100 80 60 86.0 40 20 6.0 9.7 6.0 16.0 7.2 18.0 5.8 6.3 10.7 10.0 4.8 6.0 - 2011 2012 2013 2014 2015 2016 2017 2018 Special dividend per share Final dividend per share Dividend payout ratio (As a percentage of realized profit) 1. Dividend pe
Slide 9: Strong Balance Sheet
Strong Balance Sheet As at 31 December, 2018 HK$ millions ASSETS Current assets 2,528 • Cash & equivalents1 • 1,629 • Fees receivable • 129 • Investments2 • 517 Non-current assets 1,868 • Investments (including investment in JV and investment property)2 • 1,781 Total assets 4,396 LIABILITIES Current
Slide 10: Business review
Business review By Dr. AU King Lun MH, PhD Chief Executive Officer 10
Slide 11: Delivering growth
Delivering growth China Investment Investment Solutions Rest of the World Expert Value Partners China Provider Global Footprint Product Suite Expansion China Business Opened Kuala Lumpur office Alternatives as the Established domestic private in October 2018 to further focus of the next phase
Slide 12: Alternatives: The next phase of our product suite expansion
Alternatives: The next phase of our product suite expansion Alternatives Private Equity Real Estate China / Greater China equities Launched first fund in June 2017 Preparing to launch second fund Quantitative QIS in 2019 Investment Asia equities Private Equity Solutions Will be launching a fun
Slide 13: China: Further breakthroughs and accelerating growth
China: Further breakthroughs and accelerating growth Private Funds/ PFM Business Launched first PFM fund in January Launched another three PFM funds in June, Established First HK asset July and September WFOE in manager to be Onshore Private Equity Business Shanghai to Granted QDLP granted
Slide 14: Making inroads globally
Making inroads globally Europe • UCITS funds are seeing strong inflows following revamp of products to better fit European institutional investors Other Growth Markets • Added new Asia ex-Japan equity fund to UCITS • Middle East: Prospecting activities suite in 2018 and will continue to grow reveale
Slide 15: Investor relations contacts
Investor relations contacts Value Partners Group Limited 43rd Floor, The Center 99 Queen’s Road Central, Hong Kong www.valuepartners-group.com Ms. Icy Wong Chief Financial Officer Email: icywong@vp.com.hk Tel: (852) 2143 0464 Follow us on WeChat LinkedIn Ms. Isabella Zhong Associate Director, Invest