Hysan Development Co., Ltd. · HKEX:14
Hysan Development — H1 2017 Earnings Presentation
32 slides from Hysan Development's earnings presentation, Aug 4, 2017
Slide 1: Hysan Development 2017 Interim Results Press Conference
Hysan Development 2017 Interim Results Press Conference 希慎興業 2017年中期業績 新聞發佈會 4. 8. 2017
Slide 2: Remarks by Ms. Irene Yun Lien Lee, Chairman
Remarks by Ms. Irene Yun Lien LEE Chairman 主席利蘊蓮女士 簡介 2017 年中期業績摘要 2
Slide 3: 2017 Interim Results Highlights
2017 Interim Results Highlights 2017年中期業績摘要 ● Turnover up 1.8% year-on-year; Recurring Underlying Profit up 4.2% ● Retail portfolio occupancy at 99%; Office portfolio occupancy at 94% ● Demand for quality Grade A office space in core commercial district supports the strong demand in forthcoming Lee
Slide 4: Overview
Overview 概覽 ● Overall improvement in the global economy during the first half of 2017 ● Hong Kong’s economy echoed this positive sentiment ● Local retail sales was reasonably stable ● Office leasing market continued to see strong demand for core area space ● 全球經濟於2017年上半年溫和增長 ● 香港經濟亦反映此正面氣氛 ● 本港零售業銷
Slide 5: A Memorable Shopping Experience
A Memorable Shopping Experience 難忘的購物體驗 ● Structural adjustments generated by e-commerce and the corresponding changes in consumer behaviour have seen us adapt to new ways of operating our retail space ● Shopping experience must combine quality service, with content which is constantly refreshed, re
Slide 6: A Memorable Shopping Experience (con't)
A Memorable Shopping Experience (con’t) 難忘的購物體驗（續） ● Aim to give our shoppers and visitors much more than simple convenience in ways that cannot be replicated online ● Physical store still plays an important but changing role, through the provision of a backdrop to supply content and entertainment ●
Slide 7: A Memorable Shopping Experience (con't)
A Memorable Shopping Experience (con’t) 難忘的購物體驗（續） ● Take an integrated approach Collaborate with tenants / stakeholders for events and activities Expand our loyalty programmes Make use of technology on promotions and customer interface Enhance our tenant mix ● Our geographical concentration
Slide 8: A Memorable Shopping Experience (con't)
A Memorable Shopping Experience (con’t) 難忘的購物體驗（續） ● Unique events included: CX / HSBC Rugby Sevens Fan Walk (street festival, technology-based games, e-coupons to drive tenant business) “Leeisure” programme rewarded high-spending shoppers eslite summer lifestyle festival ● 多項獨樹一幟的活動包括 國泰航空／
Slide 9: A Memorable Shopping Experience (con't)
A Memorable Shopping Experience (con’t) 難忘的購物體驗（續） ● Lee Gardens is a unique community, and those who live, work, eat and shop here form an emotional attachment ● Continue to curate fresh and engaging content for this community, and ensure it remains a front-of-mind destination throughout the day fo
Slide 10: A Memorable Shopping Experience (con't)
A Memorable Shopping Experience (con’t) 難忘的購物體驗（續） 10
Slide 11: A Memorable Shopping Experience (con't)
A Memorable Shopping Experience (con’t) 難忘的購物體驗（續） ● Special marketing efforts aimed at recruiting new members for loyalty programmes Club Avenue membership for VIPs Lee Gardens Plus membership for commercial tenants’ staff and residential tenants ● Added resources to visitors’ marketing program
Slide 12: A Memorable Shopping Experience (con't)
A Memorable Shopping Experience (con’t) 難忘的購物體驗（續） ● Utilise technology for different aspects of events and loyalty programmes ● Continue to bring in interesting businesses and concepts for our permanent spaces and pop-up stores ● 廣泛運用科技進行推廣活動及顧客奬勵計劃 ● 繼續為物業的商舖空間和限時店引進有趣的商舖和概念 12
Slide 13: Office Portfolio Advantages
Office Portfolio Advantages 寫字樓業務的優勢 ● Benefit from companies’ movement away from Central and nearby areas to other core district of Hong Kong Island ● Location convenient and accessible, with broad range of lifestyle offerings ● Partner with up-and-coming co-work space providers to create work-base
Slide 14: Lee Garden Three Updates
Lee Garden Three Updates 利園三期最新進展 ● Lee Garden Three office space, which takes up about 80% of the tower’s gross floor area, has received rental commitments for more than half of its floor space ● Retail portion will see lifestyle extension to our existing portfolio ● Building on track for end of 20
Slide 15: Tai Po Project Update
Tai Po Project Update 大埔項目最新進展 ● Residential joint-venture project’s master layout plan has been established, and its design and statutory submission are in good progress. The site investigation has also been completed. ● Continue to seek similar opportunities to build new engines of growth beyond c
Slide 16: Presentation by Mr. Roger Hao, Chief Financial Officer
Presentation by Mr. Roger HAO Chief Financial Officer 首席財務總監賀樹人先生 簡介 2017 年中期業績 16
Slide 17: 2017 Interim Results Highlights
2017 Interim Results Highlights 2017年中期業績摘要 30-06-17 30-06-16 HK$'M HK$'M % 百萬港元 百萬港元 百分比 Turnover 營業額 1,791 1,760 1.8% Recurring Underlying Profit 經常性基本溢利 1,227 1,178 4.2% Underlying Profit 基本溢利 1,227 1,178 4.2% - Fair value (loss) or gain on investment properties located in 投資物業之公平值(虧損)或收益 ‧ Hong
Slide 18: 1H Performance: By Portfolio
2017 1H Performance: By Portfolio 2017年上半年表現：按業務劃分 Turnover (HK$’M) 營業額（百萬港元） 1,760 1,775 1,791 HK$139M (8%) HK$135M (8%) HK$134M (7%) HK$635M (36%) HK$657M (37%) HK$672M (38%) Residential 住宅 Office 寫字樓 Retail 商舖 HK$986M (56%) HK$983M (55%) HK$985M (55%) 2016 1H 2016 2H 2017 1H 2016 上半年 2016 下半年 201
Slide 19: 1H Performance: Retail Portfolio
2017 1H Performance: Retail Portfolio 2017年上半年表現：商舖業務 ● Retail portfolio turnover decreased by 0.1% to HK$985 million Retail Portfolio Turnover (2016 1H: HK$986 million) 商舖業務收入 Turnover rent of HK$25 million (2016 1H: HK$28 million) HK$’M 百萬港元 ● Occupancy: 99% as at 30 June 2017 (31 Dec 2016: 99%)
Slide 20: 1H Performance: Office Portfolio
2017 1H Performance: Office Portfolio 2017年上半年表現：寫字樓業務 ● Office portfolio turnover increased by 5.8% to HK$672 million Office Portfolio Turnover (2016 1H: HK$635 million) 寫字樓業務收入 ● Occupancy: 94% as at 30 Jun 2017 HK$’M 百萬港元 (31 Dec 2016: 96%) 800 + 5.8% ● Positive rental reversion in renewals, revi
Slide 21: 1H Performance: Residential Portfolio
2017 1H Performance: Residential Portfolio 2017年上半年表現：住宅業務 ● Residential portfolio turnover decreased by 3.6% to HK$134 million Residential Portfolio Turnover (2016 1H: HK$139 million) 住宅業務收入 ● Positive rental reversion on renewals, reviews and new lettings HK$’M 百萬港元 ● Occupancy: 84% as at 30 Jun 2
Slide 22: Strong Financial Position
Strong Financial Position 穩健財政狀況 Low Gearing 低負債率 ● Total Gross Debt: HK$6,392 million ● 債務總額： 63億 9千2百萬港元 (31 Dec 2016: HK$6,305 million) （2016 年 12 月 31 日： 63億 5百萬港元） ● Net Debt to Equity: 4.5% (31 Dec 2016: 5.4%) ● 淨債務與股東權益比率：4.5% Stable Debt Profile （2016 年 12 月 31 日：5.4%） ● Fixed Rate Debt: 72.
Slide 23: Presentation by Mr. Ricky Lui, Chief Operating Officer
Presentation by Mr. Ricky LUI Chief Operating Officer 首席營運總監呂幹威先生 簡介 2017 年中期業績 23
Slide 24: 1H Performance: Retail Portfolio
2017 1H Performance: Retail Portfolio 2017年上半年表現：商舖業務 Market overview: Hong Kong Retail Sales ● 2017 first six months: overall decline of 0.6% when compared to same period of 2016 ● Retail sales decline minimal reflecting a mild improvement in inbound tourism and resilience of local consumption dema
Slide 25: 1H Performance: Retail Portfolio
2017 1H Performance: Retail Portfolio 2017年上半年表現：商舖業務 Hysan’s Performance ● Total foot traffic decreased by around 5%, due to some major renovation and fit out work for new tenants. These works have been largely completed and are well received by our shoppers. ● The estimated tenant sales for first
Slide 26: 1H Performance: Retail Portfolio (con't)
2017 1H Performance: Retail Portfolio (con’t) 2017年上半年表現：商舖業務（續） ● Newly joined fashion tenants included Brunello Cucinelli, Mila Owen and eGG, while more sports stores, like Go Wild and 2XU, were added ● A number of expansions and relocations of existing tenants ● 新加入的時裝租戶包括Brunello Cucinelli、Mila
Slide 27: 1H Performance: Retail Portfolio (con't)
2017 1H Performance: Retail Portfolio (con’t) 2017年上半年表現：商舖業務（續） ● Popular in mall events: from artistic performances to sports promotions ● Example of collaboration: CX / HSBC Rugby Sevens Fan Walk’s dining promotions successfully linked two major sponsors, the Rugby Union and Lee Gardens’ food & b
Slide 28: 1H Performance: Office Portfolio
2017 1H Performance: Office Portfolio 2017年上半年表現：寫字樓業務 ● Hysan’s office space accounts for more than 50% of its overall portfolio’s gross floor area ● Contributed 38% of its turnover ● 希慎寫字樓業務組合佔集團業務總樓面面積超過50% ● 佔營業額的38% 28
Slide 29: 1H Performance: Office Portfolio (con't)
2017 1H Performance: Office Portfolio (con’t) 2017年上半年表現：寫字樓業務（續） ● Multinational corporations continue to look for quality and more cost-effective alternatives to Central and Admiralty areas ● Lee Garden Three incoming tenants are in the financial industry (from Central and Admiralty), the technolo
Slide 30: 1H Performance: Office Portfolio (con't)
2017 1H Performance: Office Portfolio (con’t) 2017年上半年表現：寫字樓業務（續） ● Balanced tenant mix: Professional and Consulting Banking and Finance Insurance Semi-Retail Represented around 50% of our office lettable floor area ● No single category took up more than 20% of total lettable area ● 均衡租戶組合
Slide 31: Lee Garden Three Construction Update
Lee Garden Three Construction Update 利園三期建築工程 ● Topped out in the first half of 2017 ● Making good progress towards expected completion date in Q4 2017 ● 32 storey building with more than 200 parking spaces ● Exemplifies work-life balance with a retail podium, a Sky Garden with a running track, plus
Slide 32: Thank you
Thank you [eo Ly ere
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