Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — FY2020-1H Earnings Presentation
42 slides from Ctf Services's earnings presentation, Feb 28, 2020
Slide 1: NWS Holdings Limited FY2020 Interim Results
NWS Holdings Limited FY2020 Interim Results NWS Holdings Limited FY2019 Annual Results Announcement Analyst Presentation 28 February 2020
Slide 2: Table of Contents
Table of Contents NWS Business Overview Section 1 FY2020-1H Financial Summary Section 2 NWS Core Competencies Section 3 Business Segment Overview and Update Section 4 Environment, Social and Governance Section 5 Appendices Detailed Financial Statements Appendix A Historical Net Gearing Ratio Appendi
Slide 3: NWS Business Overview
Section 1 NWS Business Overview Connecting Lives ‧ Building Futures
Slide 4: NWS Corporate Structure
NWS Corporate Structure Chow Tai Fook (Holding) Limited 17.HK 1929.HK Market Cap: HK$103Bn Market Cap: HK$70Bn 100% 61% 75% 825.HK Market Cap: HK$2.3Bn (“NWS” or the “Group”) 659.HK Market Cap: HK$39Bn Note: Market cap as at 27 Feb 2020 4
Slide 5: NWS Business at a Glance
NWS Business at a Glance Core Business Roads Aviation Construction Insurance 15 toll roads in the PRC Goshawk Aviation Limited Hip Hing Group provides FTLife Insurance (total length of c.740 km) provides commercial professional construction Company Ltd aircraft leasing and services in HK man
Slide 6: Optimization of Businesses
Optimization of Businesses Disposal & Streamline of Non-Core Assets Disposal of Disposal of interest in interest in Beijing Capital Healthcare Int’l Airport Assets (BCIA) Management Ltd Discontinued Disposal of Operations of various Free Duty projects Total In Macau consideration approx. HK$910 mill
Slide 7: Vision
Vision Nurture a Resilient and Prospering Enterprise with Sustainable Long-Term Growth 7
Slide 8: FY2020-1H Financial Summary
Section 2 FY2020-1H Financial Summary Connecting Lives ‧ Building Futures
Slide 9: AOP by Segment and Geography
AOP by Segment and Geography AOP Contribution by Segment AOP Contribution by Geography Others Core Business 7% represents 89% of AOP Hong Kong 30% Mainland China 63% 3% 41% FY2019-1H 15% 29% 12% 10% 7% FY2020-1H Others -16% 11% -1% Roads Aviation Construction Insurance Strategic Portfolio Mainland E
Slide 10: Financial Summary
Financial Summary 2018 2019 YoY For the six months ended 31 Dec (HK$MM) (HK$MM) change % Revenue 14,188.0 13,215.5 (7) Attributable Operating Profit (AOP)(1) 2,431.9 2,289.9 (6) • Disposal of and provision One-off exceptional gains / (losses) 180.8 (152.9) for various operations Profit for the perio
Slide 11: Performance by Segment
Performance by Segment 2018 2019 YoY For the six months ended 31 December (HK$MM) (HK$MM) change % Roads 948.5 949.6 - • Excl. exchange rate effect AOP +4% Core Business • Expansion in fleet size Aviation 231.8 267.9 16 • Full period AOP impact from the acquisition of Sky Aviation • Gain arising fro
Slide 12: NWS Core Competencies
Section 3 NWS Core Competencies Connecting Lives ‧ Building Futures
Slide 13: NWS Core Competencies
NWS Core Competencies Continued Transition with Captive Sustainable Growth Prospects Sustainable and Progressive Dividend Policy Supported by Strong Balance Sheet Optimize Capital Structure Whilst Upholding a Prudent Financial Policy 13
Slide 14: Continued Transition with Captive Sustainable Growth Prospects
Continued Transition with Captive Sustainable Growth Prospects • Continued sustainable growth in Core Business 3 recently acquired expressways in Central China with immediate AOP contribution of over HK$100MM Insurance as new growth engine • Post completion, 2 months VONB & APE y-o-y growth 21%
Slide 15: Sustainable and Progressive Dividend Policy Supported by Strong Balance Sheet
Sustainable and Progressive Dividend Policy Supported by Strong Balance Sheet HK$ 1.5 1.45 1.2 0.9 0.78 0.60 0.65 0.58 0.6 0.3 = 0.29 0 FY2015 FY2016 FY2017 (1) FY2018 FY2019 FY2020-1H Unutilized committed Non-core assets disposal Cash on hand banking facilities Total approx. HK$910MM HK$12.5Bn HK$5
Slide 16: Optimize Capital Structure Whilst Upholding a Prudent Financial Policy
Optimize Capital Structure Whilst Upholding a Prudent Financial Policy NWS Financial Policy Debt Maturity Profile(1) (as of 31 Dec 2019) • Ample cash on balance sheet with HK$12.5Bn as at 31 Dec 2019 • Well supported by local and international banks 64% with approx. HK$5.4Bn of unutilized committed
Slide 17: Business Segment Overview and Update
Section 4 Business Segment Overview and Update Connecting Lives ‧ Building Futures
Slide 18: Core Business
Roads Construction Core Business Aviation Insurance C o n n e c t i n g L i v e s ‧ B u i l d i n g F u t u r e s18
Slide 19: Core Business – Roads
Core Business – Roads Strategy • Continue to acquire quality roads with strong cashflow and upside potential to foster sustainable growth and minimize any AOP gap with concession expiry Segment AOP Portfolio of 15 toll roads HK$MM in PRC c.740 km YoY 0% Guangdong Zhejiang Hubei Tianjin Shanxi Hunan
Slide 20: Core Business – Aviation
Core Business – Aviation Strategy • Multiple sourcing channel to propel sustainable growth via sale and leasebacks, aircraft trading and direct OEM orders • Growing asset management platform for broaden income base • Continue to invest in narrow-body aircraft and young fleet with long remaining leas
Slide 21: Core Business – Construction
Core Business – Construction Strategy • Continue to build strong pipeline of projects riding on HK's well supported demand for residential and commercial property market, as well as government and institutional projects such as hospitals and universities Contracts on hand Type of Projects(1) Segment
Slide 22: Core Business – Insurance
Core Business – Insurance Strategy • Focus on integration into New World Group, optimize ALM and value creation on embedded value • Continue to expand in distribution channel with long term focused products and maintaining strong product margins • FTLife Insurance has become an indirect wholly-owned
Slide 23: Synergies between FTLife & NW Group
Synergies between FTLife & NW Group Leverage NW Group’s brand equity Asset-Liability Management Leverage Group’s diversified business Leverage NW Group’s brand equity to reposition Leverage NWD & NWS strong cashflow and long Wellness & Healthcare FTLife’s brand and build a stronger brand image
Slide 24: Strategic Portfolio
Environment Logistics Strategic Portfolio Transport C o n n e c t i n g L i v e s ‧ B u i l d i n g F u t u r e s24
Slide 25: Strategic Portfolio – Environment
Strategic Portfolio – Environment • Environment business includes 121 projects spanning 47 cities across the Greater China region through two strategic platforms, SUEZ NWS Limited (“SUEZ NWS”) and Chongqing Derun Environment Co., Ltd. (“Derun Segment AOP Environment”) HK$MM SUEZ NWS Business updates
Slide 26: Strategic Portfolio – Logistics
Strategic Portfolio – Logistics ATL Logistics Centre Segment AOP • Located in HK - Largest logistics centre with ramp access in the world. Total leasable area: 5.9MM sqft • FY2020-1H average occupancy rate: 99.7% Solid leasing demand; renewal rate remained high HK$MM • FY2020-1H average rental: 6% •
Slide 27: Strategic Portfolio – Facilities Management
Strategic Portfolio – Facilities Management HKCEC Healthcare Free Duty Shops Segment AOP HK$MM (147) (364) • Includes operation and • GHK Hospital • Retails of duty free tobacco, liquor, management of HKCEC, HK’s – Continue ramping up; operating perfume, cosmetics, packaged largest multi-functional
Slide 28: Strategic Portfolio – Transport
Strategic Portfolio – Transport Segment AOP HK$MM New World First Ferry Citybus (F1 + F2) New World First Bus -26 -29 Fleet Size 20 vessels 1,033 buses 685 buses No. of Routes 5(-) 120 ( 2) 93 ( 2) FY2019-1H FY2020-1H Average Daily Patronage 36,000 605,000 451,000 ( -%) ( 2%) ( 2%) AOP decreased mai
Slide 29: Potential impact from Novel Coronavirus Outbreak
Potential impact from Novel Coronavirus Outbreak Short-term Medium-long term Strong balance sheet • Unutilized Committed Banking Facilities Balance Over HK$10Bn as at 28 Feb 2020 sheet • Ample cash on hand HK$12.5Bn as at 31 Dec 2019 • Gearing within comfortable range Fundamental and Temporary
Slide 30: Environment, Social and Governance
Section 5 Environment, Social and Governance Connecting Lives ‧ Building Futures
Slide 31: Strategic Approach to Sustainability
Strategic Approach to Sustainability – New World Group believes that sustainability is a vital element of better living. As a New World Group member, we subscribe to the SV2030, which sets out a strategy under four pillars – Green, Wellness, Caring and Smart – In FY2019, the Group has drawn on the S
Slide 32: NWS ESG Evolution
NWS ESG Evolution Sustainability is an integral part of the NWS corporate culture. Considerations in Environment, Social and Governance guide our business decision and daily operations as we strive to create lasting value and long-term growth for our business and our stakeholders. Framework Investme
Slide 33: NWS Environmental Targets
NWS Environmental Targets NWS contributes to NWD’s SV2030 and we have our own set of environmental targets for energy consumption, greenhouse gas emissions, freshwater consumption and waste. 33
Slide 34: Sustainability Performance Highlights
Sustainability Performance Highlights (For the year ended 30 Jun 2019) 366,869 tonnes of CO2e of greenhouse gas emission Zero fatality at Zero reported construction site incidents of Biodiesel contributed corruption case to over 80% of total diesel use at construction sites Over HK$ 5.7 8th consecut
Slide 35: Sustainability Performance Highlights by Industry
Sustainability Performance Highlights by Industry (For the year ended 30 Jun 2019) Facilities Road Construction Transport Management – G Over 44,000 tonnes of asphalt – G One of the first in HK to – G Retro-commissioning of –G Over 95% of our bus fleet are pavement materials were showcase Modular In
Slide 36: Appendix A: Detailed Financial Statements
Appendix A Detailed Financial Statements Connecting Lives ‧ Building Futures
Slide 37: Condensed Consolidated Income Statement (Unaudited)
Condensed Consolidated Income Statement (Unaudited) (in HK$MM) (Audited) (Unaudited) For the six months ended 31 December 2018 2019 Revenue 14,188.0 13,215.5 Cost of sales (12,590.2) (11,296.0) Gross profit 1,597.8 1,919.5 Other income/gains (net) 476.7 631.1 Selling and marketing expenses (108.4) (
Slide 38: Condensed Consolidated Statement of Financial Position (Unaudited)
Condensed Consolidated Statement of Financial Position (Unaudited) (in HK$MM) (Audited) (Unaudited) 30 Jun 2019 31 Dec 2019 ASSETS Non-current assets Investment properties 1,726.5 1,726.2 Property, plant and equipment 5,413.4 5,577.0 Intangible concession rights 10,060.8 14,422.7 Intangible assets 7
Slide 39: Condensed Consolidated Statement of Financial Position (Unaudited)-Cont'd
Condensed Consolidated Statement of Financial Position (Unaudited)-Cont’d (in HK$MM) (Audited) (Unaudited) 30 Jun 2019 31 Dec 2019 EQUITY Share capital 3,911.1 3,911.1 Reserves 45,134.9 44,093.7 Shareholders’ funds 49,046.0 48,004.8 Perpetual capital securities 8,039.8 10,528.5 Non-controlling inter
Slide 40: Appendix B: Historical Net Gearing Ratio
Appendix B Historical Net Gearing Ratio Connecting Lives ‧ Building Futures
Slide 41: Net Gearing Ratio
Net Gearing Ratio 40% 35% 30% 25% 20% 15% 10% 5% 0% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020-1H 41
Slide 42: 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