Slide 1: FY2023 Annual Presentation Media Session
FY2023 ANNUAL PRESENTATION MEDIA SESSION
Slide 2: Section I: Business and Financial Review
SECTION I BUSINESS AND FINANCIAL REVIEW
Slide 3: FY23 Financial Summary
SUMMARY FINANCIALS FY23 FINANCIAL SUMMARY Revenue Core Profit (1) Profit for the Year HK$4,081M HK$95,214M HK$11,011M -5% YoY +40% YoY +21% YoY Profit attributable to shareholder HK$901M (-28% YoY) Capital Resources Net Gearing Ratio Dividend Interim: HK$0.46/share Reported: 48.7% HK$94B (2) Final:
Slide 4: Key Highlights in FY23
KEY HIGHLIGHTS IN FY23 SOLID DP AND K11 RESULTS AMIDST CHALLENGING ENVIRONMENT SUCCESSFULLY OPTIMIZED CAPEX FY23 Financial Highlights • Resilient Mainland China contracted sales • Strong HK DP performance driven by ✓ Strong presence in 1st tier cities Pavilia Farm I & II booking ✓ Brand premium asso
Slide 5: Investment Properties: Solid K11 Results Benefitting from Full Border Reopening
INVESTMENT PROPERTIES SOLID K11 RESULTS BENEFITTING FROM FULL BORDER REOPENING IP Revenue by Region Favorable HK policy K11 YoY growth YoY growth 4,824 4,996 +4% +12% 2,796 3,087 +10% +16% SKYCITY: Transformation from a Massive Publicity Campaign Top Talent Pass Scheme “city airport” to an “Airport
Slide 6: K11 Record-High Sales Performance
INVESTMENT PROPERTIES HONG KONG K11 RECORD-HIGH SALES PERFORMANCE K11 MUSEA and K11 Art mall have recorded the highest footfall since their respective openings, with overall sales also hitting an all-time high Management Alpha K11 MUSEA Differentiated Brand value Good tenant mix Strong CRM customer
Slide 7: Night Market by the Sea – Hong Kong's First Cultural Waterfront Market
NIGHT MARKET BY THE SEA – HONG KONG'S FIRST CULTURAL WATERFRONT MARKET >15,000 Visitors on the First Weekend | Footfall +30% vs last weekend 7
Slide 8: Development Properties Mainland China: Contracted Sales Target Achieved
DEVELOPMENT PROPERTIES MAINLAND CHINA MAINLAND CHINA ACHIEVED CONTRACTED SALES TARGET RMB15BN+ FOR FY23 AND RMB4.1BN FOR JUL AND AUG 2023 Robust performance despite challenging environment Contracted sales Key projects launched in FY23 GUANGZHOU Exceeded PARK PARADISE FY23 Target RMB RMB1.7 BN contr
Slide 9: Development Properties Mainland China: Favorable Policies and Key Launches
DEVELOPMENT PROPERTIES MAINLAND CHINA WITH HIGH-QUALITY PROJECTS AND STRONG PRESENCE IN PRIME LOCATIONS, NWD BENEFITS FROM FAVORABLE POLICIES STIMULATING UPGRADING DEMAND Robust performance despite the market downtrend Recent favorable policies Latest key projects launched in Jul – Sept 23 SHENYANG
Slide 10: Fanling North New Development Areas (Wu Nga Lok Yeung)
FANLING NORTH NEW DEVELOPMENT AREAS (WU NGA LOK YEUNG) Northern Metropolis Strategy: To create more land resources for residential use and support the development of I&T and other industries • Easy access to Ma Sik Road 馬適路 ✓ Road connections in place • Previously loaned to govt for free to build te
Slide 11: Entering a Harvesting Phase: 11 SKIES
ENTERING A “HARVESTING PHASE” BEGINNING THE LONGER-TERM PROCESS OF REALIZING RETURNS ON PAST INVESTMENTS 11 SKIES: Newest tourism landmark at the heart of GBA will largely benefit from tourism rebound and flight capacity expansion One-Stop Largest Entertainment, Retail Unparalleled Geographical Adva
Slide 12: Entering a Harvesting Phase: Kai Tak Sports Park and K11 ECOAST
ENTERING A “HARVESTING PHASE” BEGINNING THE LONGER-TERM PROCESS OF REALIZING RETURNS ON PAST INVESTMENTS Kai Tak Sports Park K11 ECOAST in Shenzhen Prince Bay (深圳太子灣) K11 Office K11 Cultural Retail Space The Largest Sports Venue in Hong Kong 1 Opening by end of 2024 Host the 15th National Games in 2
Slide 13: Section II: Delivering Our Commitments
SECTION II DELIVERING OUR COMMITMENTS
Slide 14: Access to Abundant Capital at Low Funding Costs
ACCESS TO ABUNDANT CAPITAL AT LOW FUNDING COSTS Abundant liquidity as banks continue to show strong support Offshore Borrowings – HKD/USD Onshore Borrowings – RMB ✓ In 2HFY23, secured HK$30b of low- Bank loans done with low interest rate interest loans from banks @ 2.8% to 3.2% o Refinancing: c.HK$2
Slide 15: Recurring Business to Contribute ~50% Profit by 2026
RECURRING BUSINESS TO CONTRIBUTE ~50% PROFIT BY 2026 Improved earnings stability as a result of strong rental income growth from investment properties pipeline Before 2023 2023 2026 ~20% ~30% ~80% ~70% ~50% Ramp up in IP since 2019 Major IPs Recurring core profit Non-recurring core profit 11 SKIES,
Slide 16: Explore Strategic Options to Unlock Value and Maximize Shareholder Return
1H23 Corporate Deleveraging No Rights Issue Commitments Actions EXPLORE STRATEGIC OPTIONS FOR VARIOUS BUSINESSES TO UNLOCK VALUE AND MAXIMIZE SHAREHOLDER RETURN Healthcare Actively exploring strategic options for various businesses in order to: Property Management development services • Unlock value
Slide 17: Q&A Session
Q&A SESSION