Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — FY2023 interim Earnings Presentation
33 slides from Ctf Services's earnings presentation, Feb 23, 2023
Slide 1: FY2023 Interim Results Analyst Presentation
FY2023 Interim Results Analyst Presentation 23 February 2023
Slide 2: We Connect, Together We Thrive
We Connect, Together We Thrive Celebrating 20th Listing Anniversary, Anticipating the next decade Vision Foster connectivity for our communities to thrive Connect people, goods & capital through a Mission portfolio of market leading businesses Act with integrity Create shared value Value A
Slide 3: Sustainably Growing Business Portfolio
Sustainably Growing Business Portfolio Core Business Enhancement of Business Portfolio in FY2023-1H Completion of disposal of aircraft leasing platform (c.US$0.8Bn) - Awarded “Best M&A Deal of the Year” Roads Construction Insurance Acquisition of remaining 60% interest in Sui-Yue Expy (c.RMB555.
Slide 4: Key Beneficiary of Border Reopening & Economic Recovery in the Mainland
Key Beneficiary of Border Reopening & Economic Recovery in the Mainland Roads Insurance Traffic flow recovery facilitated by • Pent-up demand from Mainland visitors • Exit from COVID-19 containment restrictions in the Mainland • APE from Mainland visitors c.30% of total APE before • Economic recover
Slide 5: Optimization of Balance Sheet & Strengthening of Fundamentals
Optimization of Balance Sheet & Strengthening of Fundamentals Optimized capital structure & Value accretive acquisitions to generate sustainable reduced interest cost via recurring cash flow & AOP • Cash flow savings through redemption of • Completion of acquisition of 40% bonds/perpetual capital se
Slide 6: Continuous Return to Shareholders
Continuous Return to Shareholders 20 consecutive years of dividend & counting Continue to crystalize & deliver value for shareholders Uphold our sustainable & progressive dividend policy Sustainable & progressive dividend policy on absolute DPS DPS (HK$) 0.61 0.58 0.58 0.59 0.30 Same as FY2022
Slide 7: Recurring Businesses Remain Solid
Recurring Businesses Remain Solid Recurring businesses AOP1 = ↓ 3% Overall ↓ 29% ↑ 0.5% ↑ 10% ↑ 50% ↑ 21% ↓3% HK$’M 1,978 1,918 969 685 491 540 401 403 418 279 (162) (128) Roads Construction (Hip Hing) 2 Insurance Logistics Facilities Management FY2022-1H FY2023-1H Notes: 1. Excl. Aviation & Strateg
Slide 8: Financial Highlights
Financial Highlights • Roads – containment measures against COVID-19 in 2021 2022 the Mainland, cut in toll fee for trucks by 10% in Q4 22, (HK$’M) (HK$’M) YoY RMB depreciation & absence of financial incentives received in FY2022-1H associated with the investments For the six months ended 31 Dec (re
Slide 9: Performance by Segment
Performance by Segment • Containment measures against COVID-19 in the Mainland, reduction in toll fee for trucks by 10% in 2021 2022 YoY Q4 22, RMB depreciation & absence of financial For the six months ended 31 Dec (HK$’M) (HK$’M) change % incentives received in FY2022-1H associated with the (resta
Slide 10: Core Business
Roads Construction Insurance Thank You Core Business
Slide 11: Enriching Portfolio to Capture Long-Term Growth
Roads - 17 toll roads in the Mainland (c.1,000km) Segment AOP Enriching Portfolio to Capture Long-Term Growth HK$M YoY ↓ 29% ► Capturing growth opportunities to bring sustainable income and cash flow to the Group Signed agreement to acquire the remaining 60% stake in Sui-Yue Expy in 969 Excluding
Slide 12: Anticipated Increase in Tender Supply Fosters Positive Outlook
Construction - Hip Hing (100%) & Investment in Wai Kee (11.49%) Segment AOP Wai Kee Hip Hing HK$M Anticipated Increase in Tender Supply Fosters YoY ↓ 7% Positive Outlook 48 13 ► Hip Hing Group’s AOP remained stable at HK$403M 401 403 FY2022-1H FY2023-1H ► FY2023-1H New contract awarded to Hip Hing G
Slide 13: Well Positioned to Capture Mainland Visitors amid Challenges
Insurance – FTLife Insurance Well Positioned to Capture Mainland Visitors amid Challenges ► Relentless efforts in offering innovative insurance products that take care of Segment AOP customers’ needs1, and clinched 3 awards at 10Life 5-Star Insurance Award HK$M YoY 2022 ↑ 10% ► Enhancing distributio
Slide 14: Insurance – FTLife Insurance (Cont'd)
Insurance – FTLife Insurance (Cont’d) HK$726.9M HK$220.5M Outlook (-31% yoy) VONB APE • Long-term growth outlook remains unscathed driven by solid demand 30% 2,400+ Market Ranking3: VONB Margin 12th Tied Agents for FTLife’s products induced by rising awareness of healthcare HK$6,347.4M 310+ protecti
Slide 15: Strategic Portfolio
Logistics Strategic Portfolio Facilities Management
Slide 16: Another Business Focus on Sanguine Outlook
Logistics Another Business Focus on Sanguine Outlook ► Logistics Asset & Management (“LA&M” ) Segment AOP HK$M YoY • ATL – solid performance (Contributed over 70% of Logistics’ AOP) ↑ 50% Keen demand for ATL’s warehouse space supported rental growth Average rent +2%; Occupancy rate maintained at
Slide 17: Logistics (Cont'd) Outlook
Logistics (Cont’d) ► CUIRC – AOP grew respectably by 43% yoy • Strong demand for multimodal transportation service & increase in terminal capacity underpinned noticeable AOP growth Outlook • Throughput grew by 18% yoy to 2.7M TEUs in FY2023-1H • Expected acceleration of economic growth in the Mainla
Slide 18: Improvement stays on track
Facilities Management Improvement stays on track ► GHK Hospital – EBITDA increased 285% & further improvement in AOL Segment AOL • EBITDA margin continued to improve HK$M YoY • Inpatient & day cases +1% & +3% yoy; Outpatients -2% yoy ↑ 21% • Regularly utilized beds increased to 264 (31 Dec 22: 238)
Slide 19: Facilities Management Outlook
Facilities Management ► HKCEC – Recovery continues (c.17% of segment AOL) • Recovery in no. of events & exhibitions following the relaxation of social-distancing measures in HK Outlook • No. of events held: 409 (+22% yoy) • GHK • Total patronage: c.3.3M (+24% yoy) – Continues to ramp up & more colla
Slide 20: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG)
Slide 21: ESG Ratings and Recognitions
ESG Ratings and Recognitions ESG Ratings* ESG Awards Awarding Rating Agency Performance Date Organisation Award Received a rating of A in Dec 2022 The Hong Kong Best Corporate Governance the MSCI ESG Ratings Institute of Certified and ESG Awards 2022 assessment Public Accountants Nov 2022 Hong Kong
Slide 22: Our Journey and Implementation Plan towards Climate Resilience
Our Journey and Implementation Plan towards Climate Resilience We are working towards our 2050 net zero ambitions and in full support of the Government of the Hong Kong Special Administrative Region (HKSAR) commitments on carbon neutrality 2050. 2020 2021 2022 2023+ • Committed to NWS • Conducted fi
Slide 23: Project Highlights
Project Highlights Electrifying the construction site Cooling our facility with seawater Greening the commute Energy storage is crucial to decarbonizing the power system The use of air conditioning attributed a large The Zhiyi West Lake Service Area under our Roads and reducing greenhouse gas emissi
Slide 24: Appendices
a #32 NWS Appendices a #3 NWS
Slide 25: Corporate Structure
Corporate Structure Chow Tai Fook (Holding) Limited 17.HK 1929.HK Market Cap: HK$54Bn Market Cap: HK$156Bn Appendix 825.HK Market Cap: HK$1.5Bn 659.HK Market Cap: HK$29Bn 25 Note: Market cap as at 22 Feb 2023
Slide 26: AOP by Segment and Geography
AOP by Segment and Geography Core Business Others represents 78% of AOP 17% Mainland China 40% FY2022 1H Hong Kong 43% Appendix 32% 26% 20% 20% 8% Others 4% -6% Roads Construction Insurance Logistics Facilities Strategic FY2023 Management Investments Hong Kong Mainland China 53% 1H 43% 26
Slide 27: Portfolio of toll roads in the Mainland
Portfolio of 17 toll roads in the Mainland c.1,000km ROADS Guangdong Zhejiang Hubei Tianjin Shanxi Hunan Guangxi # of Roads 7 1 2 1 3 2 1 Appendix Length 313.9 km 103.4 km 137.34 km 60.67 km 76.52 km 89.08 km 198 km Concession Expiry 2023–2035 2029 2040-2050 2039 2023–2025 2039-2044 2045 FY23-1H Cum
Slide 28: Prime Construction Company in HK
Prime Construction Company in HK CONSTRUCTION Type of Projects1 Contracts On Hand (HK$’Bn) 6% 55 58 Commercial & 70 Areas of Expertise 65 60 Residential 2 55 68% 50 45 40 35 Building 30 25 Appendix 20 15 Government3 & 10 5 0 Institution 32% 31 Dec 21 31 Dec 22 Foundation Construction Backlog (HK$’Bn
Slide 29: Investment Portfolio (As of Dec 2022)
Investment Portfolio (As of 31 Dec 2022) INSURANCE Investment Portfolio AUM* (HK$'M) Asset Types 58,713 55,670 56,393 Fixed Income 75% Other Equities & Public Assets & Investment Funds Appendix Cash 10% 31 Dec 20 31 Dec 21 31 Dec 22 9% Private Funds * Exclude Investment-Linked Assurance Scheme busin
Slide 30: Investments in Logistics in Greater China
Investments in Logistics in Greater China LOGISTICS Investments in: Logistics property in Suzhou* • ANE (Cayman) Inc. CUIRC • Worldex (全球捷運) • JV with China State Railway Group, Urumqi Jilin Inner PSA, CIMC & Deutsche Bahn Mongolia • 13 large-scale rail container terminals in Liaoning Xinjiang the M
Slide 31: Optimization of business portfolio
FY2018-2H to FY2023-1H Optimization of business portfolio Investments in Roads, Insurance & Logistics segments at least HK$30Bn Key Acquisitions Logistic property in Suzhou (FY2023-2H)* • Laogu Expy • Guiwu Expy • Suiyuenan Expy • Sui-yue Expy (40%) • Changliu Expy • Sui-yue Expy (60%)* • A portfoli
Slide 32: Thank you
———a AT 32 NWS Thank you
Slide 33: 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