Wharf (Holdings) Ltd. · HKEX:4
Wharf (Holdings) — The Wharf (Holdings) — FY2020 Earnings Presentation
47 slides from Wharf (Holdings)'s earnings presentation, Mar 9, 2021
Slide 1: COVID Year Hit Operations: 2020 Final Results
COVID YEAR HIT OPERATIONS The Wharf (Holdings) Limited 2020 Final Results 9 Mar 2021 The Wharf (Holdings) Limited 2020 Final Results 1
Slide 2: Overview
Overview The Wharf (Holdings) Limited 2020 Final Results 2
Slide 3: Highlights
Highlights • Full Year UNP Increased by $382M (+14%) to $3,092M • Operating Businesses (72% of Group UNP) Contributed a Decrease of $532M • Investment & Others (28% of Group UNP) Contributed an Increase of $914M The Wharf (Holdings) Limited 2020 Final Results 3
Slide 4: Property-focused
Property-focused Total Assets Properties Logistics Others (Ex-Cash) 65% 7% 28% $237.4B Total Revenue Properties Logistics Others 76% 12% 12% $21.0B Underlying Net Profit Properties Logistics Others $3.1B 58% 15% 27% Note: Properties incl. Hotel The Wharf (Holdings) Limited 2020 Final Results 4
Slide 5: Financial Highlights
Financial Highlights HKD Million 1H20 2H20 2020 2019 Group Revenue 5,551 15,446 20,997 16,874 Operating Profit 2,517 8,587 11,104 7,869 • Washout in 1H; Pockets of Recovery in 2H Underlying Net (Loss) / Profit (UNP)* (1,132) 4,224 3,092 2,710 • IP Revaluation Returned to Surplus in 2H Attributable I
Slide 6: Hong Kong Properties
Hong Kong Properties The Wharf (Holdings) Limited 2020 Final Results 6
Slide 7: HK Properties – Exclusive Peak Portfolio
HK Properties – Exclusive Peak Portfolio No. 2,4,6,8 No. 9,11 Site Mansfield Road Mansfield Road • HK Landbank*: 3.6M s.f. Site Location The Peak – Acquired 2 Adjoining Sites on Mansfield Road Product Type Super Luxury Residential – Peak Portfolio Doubled to 600,000 s.f Acquisition Date Dec 2020 Feb
Slide 8: Mount Nicholson
Mount Nicholson • Controlled Viewings during Pandemic for Health & Safety • 1 Apt Sold at $533M ($116,000 psf) in 2020 & 1 Apt Sold at $490M ($115,000 psf) in Jan 2021 • Attributable Operating Profit $751M from Recognition of 3 Hse & 2 Apt • 1 Apt to be Booked in 2H21 • No. of Unsold Units*: 2 Hse &
Slide 9: 77/79 Peak Road
77/79 Peak Road • Harmonious Balance of Sophisticated City Living & Nature • Newly Launched in Jan 2021 – 6 Hse for Sale & 2 Hse for Lease (6,061 – 8,139 s.f.) • 3 Transactions in Quick Succession – Total Contracted Sales $1.7B – Latest Hse Sold at $558M (over $92,000 psf) The Wharf (Holdings) Limit
Slide 10: 11 Plantation Road
11 Plantation Road • Comprises 7 Hse with Hse 1 (10,804 s.f.) Leased in Mar 2021 – Monthly Rent of $1.35M ($125 psf) • Rare 270-degree Panorama from Victoria Harbour to Lush Island South & the Pacific The Wharf (Holdings) Limited 2020 Final Results 10
Slide 11: Mainland Investment Properties
Mainland Investment Properties The Wharf (Holdings) Limited 2020 Final Results 11
Slide 12: Remarkable Domestic Consumption
Remarkable Domestic Consumption CDIFS Rooftop Night Market Coupon Promotion CSIFS 2021 New Year Eve’s Countdown Summer Event iGO Shopping Navigator (5G) VIP Program with Over 250K people The Wharf (Holdings) Limited 2020 Final Results 12
Slide 13: Mainland IP – V-Shaped Rebound
Mainland IP – V-Shaped Rebound Mainland IP Revenue (HKD billion) • Record Sales at Flagship Malls Bolstered by: 1H 2H (+7%) – Location & Critical Mass 2020 1.9 2.3 4.2 – Trade Mix & the Best-Selling Brands 2019 2.0 1.9 3.9 – Sales-driven Marketing Initiatives CAGR: 2018 1.6 1.8 3.4 +16% – Expanded L
Slide 14: CSIFS – Exceptional Sales Productivity
CSIFS – Exceptional Sales Productivity 2020 CSIFS Mall • Impressive Sales Productivity & Record Breaking Net Revenue (Net of Tax) +20% – Retail Sales +42% Full Year Retail Sales +42% - 2H20 +67% – Foot Traffic Largely Restored - 1H20 +6% – Full Occupancy Turnover Rent Portion* 45% – Reversion Upside
Slide 15: CDIFS – Benchmark of Sales Productivity
CDIFS – Benchmark of Sales Productivity 2020 CDIFS Mall • One of Top 10 Malls in ML China for Retail Sales Net Revenue (Net of Tax) +12% • Outstanding Achievement for Western China Full Year Retail Sales +18% - 2H20 +46% • Outstanding Mkt Position Brings Double-digit - 1H20 -11% Retail Rental Revers
Slide 16: Mainland Development Properties
Mainland Development Properties The Wharf (Holdings) Limited 2020 Final Results 16
Slide 17: Mainland DP – Selective Landbanking Strategy
Mainland DP – Selective Landbanking Strategy • Landbank: 2.8M s.m. – Focused in Hangzhou, Beijing, Shanghai & Suzhou 2020 Operating Matrix • Government Policy Reiterates ASP Control Revenue $17,658M +19% Operating Profit $7,621M +55% – Remained Prudent & No Purchase in 2020 Operating Margin 43% +10
Slide 18: Exceeded Target
Exceeded Target 2020 Contracted Sales • Exceeded Sales Target by 16% Sales RMB 17.4B -13% – 84% of Total Sales from Suzhou, Hangzhou, GFA 549,000 s.m. -4% Beijing & Chongqing ASP RMB 30,700 psm -8% • ASP Control Held Back Profitability of New Launches 2021 Sales Target • 2021 Sales Target RMB 15B 20
Slide 19: Hotels
Hotels The Wharf (Holdings) Limited 2020 Final Results 19
Slide 20: Wharf Hotels – Recalibration & Reset
Wharf Hotels – Recalibration & Reset • Robust Mainland Domestic Mkt but Tough Elsewhere • Proactive Plan Against Pandemic – Health & Safety Initiatives Since 2015 Since 1970s – Cost Containment Measures Award-winning, – Staycation Promotions for Domestic Consumption Contemporary Chic Business Travel
Slide 21: Niccolo – Luxury Hospitality
Niccolo – Luxury Hospitality RGI* vs. Competitive Set • Shining Record Results in 2H Chengdu Chongqing Changsha – Record High Occupancies in 3Q RGI* 203 168 185 – Record Revenue & OP in Niccolo Changsha • RGI (Revenue Generating Index) Consistently at * Rank 1 2 1 Top of Market *RGI (Revenue Generat
Slide 22: Niccolo Suzhou – The Beacon of the Future
Niccolo Suzhou – The Beacon of the Future • 5th Hotel in the Highly Successful Niccolo Collection • Opening in Suzhou on 1st Apr 2021 • Sky Hotel with Stunning View of Jinji Lake Note: Niccolo Suzhou Owned by WREIC The Wharf (Holdings) Limited 2020 Final Results 22
Slide 23: Niccolo Suzhou – The Beacon of the Future
Niccolo Suzhou – The Beacon of the Future “The Most Anticipated Luxury Hotel of the Year” Award 2020 Hotel Awards Suzhou First Journey Enchante Hotel Awards Shanghai WOW Travel Award The Anticipated Hotel The Most Anticipated The Most Anticipated Most Anticipated Awards of the Year Luxury Hotel of t
Slide 24: Logistics
Logistics The Wharf (Holdings) Limited 2020 Final Results 24
Slide 25: Logistics – 2H Recovery
Logistics – 2H Recovery Modern Terminals (2020) Revenue $2,556M (-1%) Operating Profit $487M (-3%) Throughput (million TEUs) • Rewarding Year from Strong 2H Recovery HK 5.0 Flat • MTL HK Throughput Stayed Flat DCB# 1.4* +6% SCT# 5.8* +2% • Macro Challenges & Regional Competition Persist Total 12.2 +
Slide 26: Financial Management
Financial Management The Wharf (Holdings) Limited 2020 Final Results 26
Slide 27: Disciplined Financial Management
Disciplined Financial Management Debt Maturity (HKD billion) (As at 31 Dec 2020) 2021 11.5 • Net Debt: $25.5B 2022 3.7 • Gearing: 15.6% 2023 13.9 • Average Interest Cost: 2.9% • Interest Cover: 9.3x 2024 5.9 • Floating Rate Debt: 93% 2025 2.9 2026 & After 4.3 Total: $42.2B The Wharf (Holdings) Limit
Slide 28: Outlook
Outlook The Wharf (Holdings) Limited 2020 Final Results 28
Slide 29: Outlook
Outlook • The Worst May Be Over, But 2021 May Not Be As Strong As Many Would Like – COVID-19 Vaccine Rollout will Help Economies & Borders to Reopen – Mainland China Leads the World with Rapid Recovery – Tepid & Uneven Economic Recovery Around the World in 2021 – Lingering Sino-US Conflicts • Expect
Slide 30: Coming Attractions
Coming Attractions The Wharf (Holdings) Limited 2020 Final Results 30
Slide 31: Coming Attractions
Coming Attractions Peak Portfolio: HK Property Mt Nicholson, 77/79 Peak Road, 11 Plantation Road Hotel Niccolo Suzhou (Opening 1 Apr 2021) Mainland IP On-going Brands Expansion & Excitement at IFS Series Mainland DP 4 Upcoming New Projects Sales Launches Logistics HK Seaport Alliance Realising Effic
Slide 32: Sustainability
Sustainability The Wharf (Holdings) Limited 2020 Final Results 32
Slide 33: Sustainability Highlights
Sustainability Highlights • Wharf Emergency Relief Fund to Support the • RMB 1B Green Loan Facility to Refinance CSIFS Needy Affected by COVID-19, Incl.: • Hang Seng Corporate Sustainability Index Series – RMB10M to Red Cross Society of China (Hubei) Member 2020-2021 • Published Standalone Sustainab
Slide 34: Sustainability Highlights
Sustainability Highlights • LEED Platinum – CSIFS, CDIFS • LEED Gold – Shanghai Wheelock Square, Wuxi IFS • EarthCheck Silver Certification – Niccolo Chengdu, Niccolo Chongqing & Marco Polo Wuhan The Wharf (Holdings) Limited 2020 Final Results 34
Slide 35: Data at a Glimpse
Data at a Glimpse Over 91,000 Training Hours for Employees; > 5% Electricity Consumption in IP Over 28,000 Training Hours for Contractors’ Workers Project WeCan, Over 75,000 Students of > 3% GHG Emissions (Scope 2) in IP 76 Schools Benefitted Our Business Units are Now Partnering with 5 WeCan School
Slide 36: Appendix
Appendix The Wharf (Holdings) Limited 2020 Final Results 36
Slide 37: Summary of HK Properties
Summary of HK Properties Portfolio Usage Status Locations Attributable GFA (s.f.) 1. Peak Portfolio Residential Development No. 2-8 Mansfield Road* 259,000* No. 9,11 Mansfield Road*(50%-JV) 72,500* Sales Mount Nicholson (50%-JV) 30,500 77/79 Peak Road^ 42,200^ Lease Chelsea Court 43,000 Strawberry H
Slide 38: Mainland Contracted Sales Breakdown by City
Mainland Contracted Sales Breakdown by City Region City Contracted Sales (%) GFA Sold (%) Eastern China Shanghai 4.6% 1.3% Suzhou 33.7% 37.9% Wuxi 2.1% 2.3% Hangzhou 32.1% 23.4% Eastern China Sub-Total 72.5% 64.9% Western China Chengdu 1.5% 1.9% Chongqing 8.7% 13.4% Western China Sub-Total 10.2% 15.
Slide 39: Mainland Key Projects on Sales in 2020
Mainland Key Projects on Sales in 2020 Attributable Proceeds Attributable Average Price Projects City (RMB M) GFA sold (s.m) (RMB psm) Ownership Parc Royale Hangzhou 1,992 36,523 54,600 100% Parc Grande Hangzhou 1,544 27,355 55,200 50% Huayuan Road (Site 78) (Villa One) Suzhou 1,518 56,455 26,900 10
Slide 40: Mainland DP Land Bank Breakdown by City
Mainland DP Land Bank Breakdown by City Region City GFA million (s.m) % Total Eastern China Shanghai 0.02 1% Suzhou 0.71 25% Hangzhou 0.48 17% Eastern China Sub-Total 1.21 43% Western China Chengdu 0.66 23% Chongqing 0.17 6% Western China Sub-Total 0.83 29% Southern China Foshan & Guangzhou 0.23 8%
Slide 41: Mainland Key Projects Completion
Mainland Key Projects Completion Projects Attributable GFA (s.m) Key Completion in 2020 Suzhou Yangcheng Lake (Site 27) 138,800 Chengdu Times City 111,200 Chengdu Crystal Park 70,500 Hangzhou Qianjiang Development Area (Junting) 68,100 Suzhou Yuanhe Road (Poetic Palace) 59,500 Shanghai One Jingan 56
Slide 42: Mainland New Projects for Sales in 2021
Mainland New Projects for Sales in 2021 Projects City Ownership The Legend Suzhou 100% Parc Royale – Phase 2 Hangzhou 100% Imperial Park Hangzhou 100% CSIFS T2 Apartments Changsha 100% The Wharf (Holdings) Limited 2020 Final Results 42
Slide 43: Mainland IP – Different Series
Mainland IP – Different Series Times Square IFS & Times Outlets Total GFA * Year of Total GFA * Year of Property Project Nature (s.m.) Completion Property Project Nature (s.m.) Completion Times Square Mixed-use IFS Complexes Chongqing ** O/R 55,000 2004 Chengdu R/O/S.A/ H 603,000 2013-2016 Dalian**
Slide 44: Wharf Hotels Management
Wharf Hotels Management Niccolo (Since 2015) Hong Kong Mainland The Murray, Hong Kong, a Niccolo Niccolo Chengdu Hotel^ Niccolo Changsha Niccolo Chongqing# Niccolo Suzhou (Opening on 1 Apr 21)^ Marco Polo (Since 1970s) Hong Kong Mainland Philippines Marco Polo Hongkong Hotel^ Marco Pol
Slide 45: Overview of Application of Funds
Overview of Application of Funds Major Capital & Development Expenditure 2020 2021 HKD (Actual) (Projected) Hong Kong Properties 0.7B 17.7B Mainland China IP 0.1B 0.2B Mainland China DP 6.5B 7.6B Others 0.2B 1.9B Total 7.5B 27.4B The Wharf (Holdings) Limited 2020 Final Results 45
Slide 46: Thank you
COVID YEAR HIT OPERATIONS Thank you The Wharf (Holdings) Limited 2020 Final Results 46
Slide 47: End of Presentation
End of Presentation The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK] Disclaimer All information and data are provided for information purposes only. All opinions included herein constitute our judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries