New World Development Co. Ltd. · HKEX:17
New World Development — FY2014 Earnings Presentation
20 slides from New World Development's earnings presentation, Sep 24, 2014
Slide 1: New World One Step Forward: FY2014 Annual Results
New World One Step Forward We Create New Living Experience FY2014 Annual Results│24 Sep 2014│
Slide 2: Disclaimer
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 World
Slide 3: Corporate structure
Corporate structure New World Development (HK stock code: 17) Hong Kong Property Development and Investment NWS (HK stock code: 659) NWCL (HK stock code: 917) NWDS (HK stock code: 825) Infrastructure & Service Mainland Property Mainland Department Store 61.3% 69.7% 72.3% As at 30 Jun 2014 3
Slide 4: Financial highlights
Underlying profit: HK$6.5 bn, up 3% Segment contribution from core property businesses: 71.3%, up 8.4% pts Financial FY2014 full year dividend: HK$0.42 per share; Dividend yield: 4.4%* highlights Cash on hand and bank balances: HK$61.8 bn Net gearing of the Group: 27.3%, down 7.8% pts Net gearing of
Slide 5: Financial highlights
Financial highlights Revenues Underlying profits DPS & dividend yield* Net gearing of the Group* HK$ 56.5 bn HK$ 6.5 bn HK$ 0.42/ share 27.3% ↑21% ↑3% Dividend yield: 4.4% ↓7.8% pts Net gearing of NWD corporate office is 22.8% (excl. NWS, NWCL and NWDS) *Dividend yield: DPS/ NWD average share price
Slide 6: Financial highlights
Financial highlights (HK$ million) FY2014 FY2013 Change Revenues 56,501.1 46,779.9 ↑ 21% Total segment results 16,796.6 15,346.1 ↑ 9% Other gains, net 2,313.0 999.0 ↑ 132% Changes in fair value of investment properties 1,425.5 7,460.8 ↓ 81% Underlying profit 6,506.7 6,327.3 ↑ 3% 30 Jun 2014 31 Dec 2
Slide 7: Financial highlights: segment results
Financial highlights Segment results (HK$ million) FY2014 FY2013 Change Property development 9,586.9 7,338.5 ↑ 31% Property investment 2,031.9 1,857.7 ↑ 9% Hotel operations 361.4 450.2 ↓ 20% Service 1,526.2 1,708.5 ↓ 11% Infrastructure 2,518.2 2,462.0 ↑ 2% Department stores 543.2 743.7 ↓ 27% Others
Slide 8: HK property sales and landbank
HK$20.6 bn attributable contracted sales in FY2014, up 137% Saleable resources: Over 3,800 units HK property Launched projects: total 666 units New projects to be launched: Over 3,100 units sales Attributable GFA of ready landbank: 7.6 mn sq ft & Attributable land area of farmland: 19.3 mn sq ft Old
Slide 9: Hong Kong property sales
Hong Kong property sales No. of new projects No. of residential Attributable contracted launched units sold sales proceeds 7 projects 4,229 units HK$ 20.6 bn 9
Slide 10: Hong Kong property sales
Hong Kong property sales No of units sold No of units sold No of units sold Total units sold Projects (1 Jul 13 – 31 Dec 13) (1 Jan 14 – 30 Jun 14) (1 Jul 14 – 14 Sep 14) (1 Jul 13 – 14 Sep 14) The Riverpark, Sha Tin 56 - 1 57 The Reach, Yuen Long 436 154 163 753 Double Cove, Ma On Shan - 127 44 171
Slide 11: Hong Kong property launch
Hong Kong property launch Upcoming key residential launches Location NWD Total GFA/ sq ft Attri GFA/ sq ft Land source A. Presale consent approved THE PAVILIA HILL Tin Hau 85% 396,546 337,064 Old building Double Cove Starview Prime Ma On Shan 32% 803,662 257,172 Farmland B. New projects in the pipel
Slide 12: Hong Kong property innovation
Hong Kong property innovation Innovative Information Technology Strategy Hong Kong property: Development Dashboard (for property development) Sales Alert System (for property sales) Majordomo Excellent Service (for property management) Defects Management System (for property management) 12
Slide 13: Hong Kong landbank
Hong Kong landbank Hong Kong ready landbank (GFA) Hong Kong Island Kowloon New Territories 7.6 mn sq ft* 0.9 mn sq ft 4.1 mn sq ft 2.6 mn sq ft Hong Kong farmland landbank NW New Territories NE New Territories Sai Kung and others 19.3 mn sq ft 13.4 mn sq ft 2.5 mn sq ft 3.4 mn sq ft *As at 30 Jun 20
Slide 14: Hong Kong landbank replenishment strategy
Hong Kong landbank Landbank replenishment strategy – maintain a balanced & sustainable portfolio Proven track record – added 14 development projects with attributable GFA 4.1 mn sq ft since FY2010* A. Farmland conversion B. Public Tender No of projects: 4 C. Old building acquisition Attri GFA/ sq ft
Slide 15: Our landbank in Hong Kong Island
Hong Kong landbank Our landbank in Hong Kong Island EIGHT SOUTH LANE Des Vouex Rd West Sai Yuen Lane 4A-4P Seymour Rd 55 Conduit Rd EIGHT KWAI FONG THE PAVILIA HILL Kai Yuen Lane Kut Cheong Mansion 15
Slide 16: HK rental and hotels
HK gross rental income amounted to HK$1,490.9 mn HK gross rental income up 6%, if stripping out the effects of SOGO TST (resumption for alterations) and Discovery Park Shopping Centre (under HK rental renovations) & Key investment properties in HK maintain satisfactory occupancy Satisfactory contrib
Slide 17: Rental operations: HK investment portfolio
Rental operations Major projects occupancy in Hong Kong New World Tower, Central 93% Manning House, Central 95% HK investment portfolio K11, TST 99% Discovery Park Shopping Centre, Tsuen Wan 84% Contributed over 60% Pearl City, Causeway Bay 100% to the rental segment Telford Plaza, Kowloon Bay 100%
Slide 18: Rental operations: asset enhancement portfolio
Rental operations Portfolio HK rentalenhancement portfolio asset enhancement Completed To be completed 1.New World Tower 1.New World Tower -G/F and Main Lobby - Common area and facilities New World Centre redevelopment project 2.Discovery Park 2.Discovery Park Shopping Centre Shopping Centre -1st &
Slide 19: Hotel operations
Hotel operations 4 key hotels in Hong Kong Hyatt Regency, Hyatt Regency, Grand Hyatt Hong Kong, Renaissance Harbour View, Sha Tin TST Wan Chai* Wan Chai ADR: HK$ 1,315 ADR: HK$ 2,181 ADR: HK$ 3,430 ADR: HK$ 2,128 Occupancy: 84% Occupancy: 89% Occupancy: 61% Occupancy: 77% Our hotel portfolio Total 1
Slide 20: FY2014 Annual Results
FY2014 Annual Results New World ‧One Step Forward 24 September 2014
New World Development Company — FY2014 Earnings Presentation on 6ix