New World Development Co. Ltd. · HKEX:17
New World Development — FY2016 Earnings Presentation
23 slides from New World Development's earnings presentation, Sep 21, 2016
Slide 1: FY2016 Annual Results
FY2016 ANNUAL RESULTS│21 SEP 2016
Slide 2: Disclaimer - Important Notice
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, recommendation or suggestion by New Worl
Slide 3: Group Structure
GROUP STRUCTURE New World China Land Limited (Wholly-owned subsidiary**) Mainland China Property development & investment (HK stock code: 0017) Hong Kong Property development & investment NWS Holdings Limited (61%)* (HK stock code: 0659) Infrastructure & service New World Department Stores China Lim
Slide 4: Highlights
HIGHLIGHTS FINANCIALS - Financial position: 38.4% net gearing; HK$55.2 bn consolidated cash on hand & bank balances - Stable resources: HK$14.5 bn undrawn line + MTN program of NWD in place (un-utilised US$1.4 bn) - Full-year dividend HK$0.44 per share, up 5% PROPERTY DEVELOPMENT - Robust execution
Slide 5: Financials & Strategies
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Slide 6: Financials
FINANCIALS Results summary (HK$ million) FY2016 FY2015 Revenues 59,570.0 55,245.0 Profit attributable to shareholders* 8,666.3 19,112.0 Underlying profits 9,662.2 6,770.0 Dividend (HK$) FY2016 FY2015 Interim 0.13 0.12 Final 0.31 0.30 Full-year 0.44 0.42 Financial position (HK$ million) As at 30 Jun
Slide 7: Streamlining Businesses to Enhance Efficiency
STREAMLINING BUSINESSES TO ENHANCE EFFICIENCY Key corporate events - Privatisation of NWCL - Disposal of logistics centre in Kwai Chung - Disposal of fixed line business - China non-core asset disposals - Disposal of hotel management business - Hotel deal with ADIA & enhancement in hotel platform -
Slide 8: Property Development
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Slide 9: Sustainable Saleable Resources in HK
SUSTAINABLE SALEABLE RESOURCES IN HK Attributable contracted sales Period Sales proceeds (HK$) FY2016 6.6 billion 2015.7.1 – 2016.6.30 FY2017 3.4 billion 2016.7.1 – 2016.9.18 CY2016 7.1 billion 2016.1.1 – 2016.9.18 6 projects launched in FY2016 THE PARKHILL (柏) DOUBLE COVE GRANDVIEW (迎海‧駿岸) 55 COND
Slide 10: Sustainable Saleable Resources in HK: Upcoming Launches
SUSTAINABLE SALEABLE RESOURCES IN HK Upcoming major new launches Name Location No of units THE PAVILIA BAY (柏傲灣) Tsuen Wan 983 Sai Yuen Lane Project Western District 250 MOUNT PAVILIA (傲瀧) Clear Water Bay 680 Heung Sze Wui Rd Project Tuen Mun 100 Park Villa (柏巒) Yuen Long 51 New launches 2,064 Inven
Slide 11: Proven Track Record in HK Landbanking
PROVEN TRACK RECORD IN HK LANDBANKING OLD BUILDING REDEVELOPMENT PUBLIC TENDER FARMLAND CONVERSION Unique location Sizeable development Unlock hidden value Hong Kong attributable landbank as at Jun 2016 Hong Kong ready land (by GFA) 8.3 million sq ft - Residential usage (by GFA/ % of total) 4.6 mill
Slide 12: Proactive Management of HK Landbank
PROACTIVE MANAGEMENT OF HK LANDBANK URA tender awarded Kowloon City Rd/ Sheung Heung Rd Project NWD Attri GFA added/ sq ft 100% 111,730 Old building ownership fully consolidated 4A-4P Seymour Road, Mid Levels NWD Attri GFA added/ sq ft 35% 165,265 Ongoing old building acquisition 74-74C Waterloo Rd
Slide 13: Bring Out China Potentials & Values
BRING OUT CHINA POTENTIALS & VALUES Landbank in Mainland China Development Completed Region Property Investment landbank Properties GFA/ mil sq m 10.98 2.17 Guangzhou – Shenzhen – Foshan 27% 20% Wuhan 11% 11% Shanghai – Ningbo – Hangzhou 6% 10% Beijing – Tianjian – Hebei 12% 30% Northeast 26% 14% Ot
Slide 14: Resilient China Property Sales Performance
RESILIENT CHINA PROPERTY SALES PERFORMANCE Property sales and completion in Mainland China FY2016 FY2015 Contracted Sales RMB bn 22.9 15.4 Gross Margin % 39 42 ASP RMB/ sq m 18,172 16,937 Contracted sales % as of total Region sales proceeds Guangzhou – Shenzhen – Foshan 54% Wuhan 9% Shanghai – Ningb
Slide 15: Investment Property
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Slide 16: Defensive HK Property Investment Portfolio
DEFENSIVE HK PROPERTY INVESTMENT PORTFOLIO Office Occupancy New World Tower, Central 99% Manning House, Central 98% Mall HK K11, TST 100% D‧PARK, Tsuen Wan* 92% Pearl City, Causeway Bay 100% Telford Plaza, Kowloon Bay 99% POPCORN II, Tseung Kwan O 99% * Under final phase of renovation in FY2016 HK g
Slide 17: K11 - The World's 1st Museum Retail Concept
K11 - THE WORLD’S 1ST MUSEUM RETAIL CONCEPT Shanghai K11 - The revolutionary formation of the world’s first museum retail concept by K11, creating new consumption experience and brand equity - Sustainable “Art x Commerce” K11 business model, creating a museum retail concepts, office and residences i
Slide 18: Pioneered Concepts in IP Operations
PIONEERED CONCEPTS IN IP OPERATIONS D． ．PARK - The World’s First Multiple Intelligence Kids Mall, grandly opened in April 2016 - D．PARK is backed by 100 top-tier education institutions and continuously collaborating with multiple internationally renowned education institutions, to offer an array of
Slide 19: Upcoming Catalyst - New World Centre Redevelopment
UPCOMING CATALYST - NEW WORLD CENTRE REDEVELOPMENT Total GFA - 3 million sq ft complex Current Status - Construction carried out as scheduled - New landmark in Hong Kong Outlook - Direct access to public transports - Abundant carparks for customers 19
Slide 20: Bring Out China Potentials & Values
BRING OUT CHINA POTENTIALS & VALUES Strategy - Actively review the asset portfolio to unlock value Guiwan Project - Enhancement in geographic mix, especially in those cities with enormous potential Strategic move - 4Q 2015: Sold 5 non-core assets for RMB21 bn - 3Q 2016: Acquired 1 prominent site wit
Slide 21: Hotel Operations
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Slide 22: Hotel Operations – Crystalising Values
HOTEL OPERATIONS – CRYSTALISING VALUES Location No of hotels Hong Kong 6 China 8 SE Asia 3 Total 17 Total Occupancy ADR Hotels/ FY2016 Location room (%) (HK$) GRAND HYATT HONG KONG* Wanchai 545 64 3,100 RENAISSANCE HARBOURVIEW** Wanchai 861 78 2,000 HYATT REGENCY TST TST 381 88 1,900 HYATT REGENCY S
Slide 23: Outlook
OUTLOOK MACRO ECONOMY - Slower and uneven economic growth around the world will be the major challenges - Speculation on US interest rate hike might create ripples - China economic rebalancing and RMB currency outlook NWD - Continue to uplift the value of the New World brand in Hong Kong and Mainlan
New World Development Company — FY2016 Earnings Presentation on 6ix