Fse Lifestyle Services Limited · HKEX:331
Fse Lifestyle Services — 1H FY2025 Earnings Presentation
33 slides from Fse Lifestyle Services's earnings presentation, Feb 27, 2025
Slide 1: FY2025 Interim Results Analyst Presentation
FY2025 INTERIM RESULTS 6 Months to 31 December 2024 ANALYST PRESENTATION 27 February 2025 FSE Lifestyle Services Limited |1
Slide 2: Disclaimer
Disclaimer This presentation is prepared by FSE Lifestyle Services Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or form any basis of investment decision
Slide 3: Business Segments
Business Segments FSE Lifestyle Services Limited (Stock code: 331) 100% 100% 100% Property & Facility City Essential E&M Management Services Services Services (Cleaning (Technical Support (Property & Facility & Pest & Maintenance) (E&M Engineering Control) Services) Management Services, and Sales &
Slide 4: 1. Financial Results
1. Financial Results Summary, solid performance despite challenging market Turnover $4,090M ↓1% (p/y $4,115M) Reported earnings $242M ↓5% (p/y $255M) Core earnings $240M ↑4% (p/y $231M) (excluding grants) Core earnings ($’M) 600 500 475 446 415 400 212 244 300 189 240 200 100 226 234 231 240 0 FY202
Slide 5: 2. Key Segment Highlights: Property & Facility Management
2. Key Segment Highlights Property & Facility Management segment Turnover $350M ↑6% (p/y $330M) Reported earnings $45M ↓32% (p/y $66M) Core earnings $45M ↑5% (p/y $43M) (excluding grants) Core earnings ($’M) 100 83 85 81 80 60 39 40 42 45 40 20 42 43 43 45 0 FY2022 FY2023 FY2024 1H 2025 First half S
Slide 6: Over 300 property and facility management contracts
Property & Facility Management Segment Urban/IPM/Kiu Lok Over 300 property and facility management contracts Over 300 property and facility management contracts Government Property Larvotto K11 Masterpiece Neich Tower Agency FSE Lifestyle Services Limited | 6
Slide 7: City Essential segment
City Essential segment Turnover $2,400M ↑12% (p/y $2,143M) Reported earnings $122M ↑21% (p/y $101M) Core earnings $122M ↑21% (p/y $101M) (excluding grants) Core earnings ($’M) 250 224 208 200 186 150 95 123 83 122 100 50 103 113 101 122 0 FY2022 FY2023 FY2024 1H 2025 First half Second half FSE Lifes
Slide 8: City Essential Segment
City Essential Segment 1H 2025 1H 2024 % Turnover Turnover Changes ($’M) ($’M) City Essential (CITES) Cleaning & pest control 1,263 1,128 12% Insurance solutions 63 58 9% Technical support & maintenance 561 500 12% Environmental solutions 179 150 19% Systems security, guarding & event 334 307 9% Tot
Slide 9: Over 320 cleaning service contracts
City Essential Segment (i) Cleaning & Pest Control - Waihong Over 320 cleaning service contracts MTR - Stations, Tracks & Tunnels , Tung Wah Hospital and Kai Tak Sports Park Hong Kong International Airport Depots and High Speed Rail Grantham Hospital FSE Lifestyle Services Limited | 9
Slide 10: HK Nova - Over 4,000 insurance solutions contracts
City Essential Segment (ii) Insurance Solutions - Nova HK Nova - Over 4,000 insurance solutions contracts Kai Tak Sports Park Citybus Limited Macau Grand Prix FSE Lifestyle Services Limited | 10
Slide 11: Beijing Nova - Over 4,500 insurance solutions contracts
City Essential Segment (ii) Insurance Solutions - Nova Beijing Nova - Over 4,500 insurance solutions contracts ALBA China Suzano Shanghai Trading LS Cargo Logistics FSE Lifestyle Services Limited | 11
Slide 12: Over 2,600 technical support and maintenance service contracts
City Essential Segment (iii) Technical Support & Maintenance - Far East/Turning Over 2,600 technical support and maintenance service contracts MGM (Macau) Nina Tower Link Shopping Mall EMSD FSE Lifestyle Services Limited | 12
Slide 13: Over 1,000 environmental solutions contracts
City Essential Segment (iv) Environmental Solutions – FSE Environmental Solutions Over 1,000 environmental solutions contracts De-odourizing System for LED Display Systems at HK EV Infrastructure at Landscape Maintenance HKHA (Package A & B) – Coliseum – The Waterfront – Services for Environment Sol
Slide 14: Over 550 security guarding, systems and event contracts
City Essential Segment (v) Systems Security, Guarding & Event Services – General Security/Perfect Event Over 550 security guarding, systems & technologies and event services contracts MTR Properties New World Properties Kai Tak Sports Park FSE Related Projects FSE Lifestyle Services Limited | 14
Slide 15: City Essential Segment: Security and Event Services
City Essential Segment (v) Systems Security, Guarding & Event Services – General Security/Perfect Event HKJC Racecourses HKCEC AGM Events Music Concerts Hang Lung Properties WinterFest 2024 Property Sale Events FSE Lifestyle Services Limited | 15
Slide 16: E&M segment
E&M segment Turnover $1,340M ↓18% (p/y $1,642M) Reported earnings $85M ↓14% (p/y $99M) Core earnings $83M ↓15% (p/y $98M) (excluding grants) Core earnings ($’M) 200 187 172 155 150 89 86 82 100 83 50 86 98 73 83 0 FY2022 FY2023 FY2024 1H 2025 First half Second half FSE Lifestyle Services Limited | 1
Slide 17: Over 160 E&M services contracts
E&M Segment FSE Engineering/Majestic/Young’s Over 160 E&M services contracts Expansion of LegCo Complex Kwu Tung North Area 24, Jockey Club Road District Court at Caroline Hill Road Legislative Council 上海市黃浦區尚賢坊 Complex FSE Lifestyle Services Limited | 17
Slide 18: Segment results summary
Turnover $4,090M ↓1% Reported earnings* $242M ↓5% Core earnings* $240M ↑4% (excluding grants) Property & Facility Management City Essential E&M Turnover $350M ↑6% Turnover $2,400M ↑12% Turnover $1,340M ↓18% Reported earnings $45M ↓32% Reported earnings $122M ↑21% Reported earnings $85M ↓14% Core ear
Slide 19: 3. Market Position - Frost & Sullivan Report (Sep 2024)
3. Market Position 1 - Frost & Sullivan Report (Sep 2024) Industry Market Share (%) Property & Facility Residential 5.8% Management (Note 1) Non-Residential 6.5% Carpark 4.9% City Essential Environmental Hygiene 13.5% Local Insurance Broker 2.0% Note 1 : Excluding developer’s management companies FS
Slide 20: 3. Market Position - Frost & Sullivan Report (Sep 2024)
3. Market Position 2 - Frost & Sullivan Report (Sep 2024) Industry Market Share (%) City Essential Security Guarding 2.2% E&M E&M Engineering 6.0% FSE Lifestyle Services Limited | 20
Slide 21: 4. Dividend History
4. Dividend History Resilient Business Operations to Support Steady Returns to Shareholders Total dividend per share since IPO $3.009, representing 109% of IPO price 8.8 8.3 8.2 7.9 7.4 ($) 0.5 0.450 0.450 0.458 0.438 0.4 0.161 0.213 0.241 0.214 0.3 0.272 0.211 0.2 0.144 0.289 0.245 0.224 0.1 0.209
Slide 22: 5. 8-Year Achievements: EPS CAGR
5. 8-Year Achievements 16% CAGR EPS FY2017-24 (Reported) ($) 1.29 1.20 1.14 1.10 1.09 0.17 0.06 0.20 0.80 0.76 0.68 0.46 0.52 0.43 0.11 0.53 0.55 0.53 0.13 0.16 0.17 0.40 0.39 0.30 0.18 0.21 0.21 0.18 0.51 0.51 0.53 0.47 0.25 0.23 0.18 0.19 0.18 0.00 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Slide 23: 13% CAGR Turnover FY2017-24
13% CAGR Turnover FY2017-24 (Reported) ($’M) 9,000 8,448 8,000 7,767 6,967 7,000 6,453 4,333 6,000 774 4,055 4,927 4,931 4,882 3,616 5,000 568 1,171 2,920 4,090 4,000 3,700 2,639 2,172 3,000 1,931 1,993 2,000 4,115 4,090 3,712 3,351 2,759 1,000 2,292 2,142 1,769 1,763 0 FY2017 FY2018 FY2019 FY2020 F
Slide 24: 16% CAGR Profit FY2017-24
16% CAGR Profit FY2017-24 (Reported) ($’M) 600 587 523 503 501 500 77 26 88 340 400 244 212 310 200 300 48 237 248 242 2 73 200 57 78 174 134 86 93 82 92 234 231 240 100 215 114 103 82 87 87 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 1H 2025 Acquisition of Acquisition of Acquisition o
Slide 25: 6. Stock Price Trends
6. Stock Price Trends FSE Lifestyle outperformed HSI (Hang Seng Index) and HSPSMI (Hang Seng Property Service and Management Index) 21,860 19,781 20,225 18,916 4,600 17,047 17,719 7% 14,687 (恒生指數) 3,296 2,444 1,777 1,846 1,638 1,634 64% $6.03 (恒生物業服務及管理指數) $5.68 $5.62 $5.64 $5.44 $5.15 $4.51 10% (豐盛
Slide 26: 7. Remaining Works
7. Remaining Works Continued efforts to foster sustainable growth ($’M) 14,655 14,000 13,522 885 1,911 ↑116% 12,000 10,000 6,851 6,798 ↓1% 8,000 6,000 4,000 ↑3% 5,786 5,946 2,000 0 Jun Jun 2024 2024 Dec Dec2024 2024 FSE Lifestyle Services Limited | 26
Slide 27: 8. Segment AOP - 1H 2025
8. Segment AOP* – 1H 2025 Non-E&M Recurring Businesses remain solid, contribute 66% AOP and growing $122M $45M Property & Facility Management 18% City Essential 48% E&M 34% $85M * Based on Net Profit including government grants but excluding unallocated corporate expenses FSE Lifestyle Services Limi
Slide 28: 9. FSE Ecosystem (Multi Service Lines)
9. FSE Ecosystem (Multi Service Lines) With strong cross-selling to drive growth Strong Cross- selling Synergies Organic Growth through FSE ECOSYSTEM Diversified High Income Quality Streams FSE Lifestyle Services Limited | 28
Slide 29: 10. Capital Strength and Resilience
10. Capital Strength and Resilience With financial flexibility and funding certainty As at 31 December 2024 Banking Facilities Cash and Banks Debt Maturity Profile $1,330M $505M, 81% (in HK$M) Jan 25 21 Total Total Jan 25 170 $3,090M $622M Oct 26 219 $92M, 15% $25M, 4% Zero net gearing ratio $1,760M
Slide 30: 11. Why Invest In FSE Lifestyle?
11. Why Invest In FSE Lifestyle? Continuous return to shareholders with quality development Defensive and Resilient Financial Results and Contract Portfolio - Sustained core earnings $240m - New contract award $4.6b - Strong order book $24.3b - Healthy remaining works $14.7b High Dividend Yield, Con
Slide 31: 11. Why Invest In FSE Lifestyle?
11. Why Invest In FSE Lifestyle? Continuous return to shareholders with quality development Strong Governance & Capital Management - High caliber management team - Effective ESG stewardship - Zero net gearing - Ample facilities and liquidity, low funding costs Continuous M&A - The acquisition of BJ
Slide 32: 12. Interim Dividend FY2025 Schedule
12. Interim Dividend FY2025 Schedule Closure of Financial Dividend per Ex-dividend Register of Dividend Period Share Date Ordinary Payment Date Shareholders 1 Jul 2024 on or about to $0.211 13 Mar 2025 17 & 18 Mar 2025 28 Mar 2025 31 Dec 2024 FSE Lifestyle Services Limited | 32
Slide 33: Q&A
Q&A FSE Lifestyle Services Limited | 33
FSE Lifestyle Services — 1H FY2025 Earnings Presentation on 6ix