New World Development Co. Ltd. · HKEX:17
New World Development — FY2018 Earnings Presentation
30 slides from New World Development's earnings presentation, Sep 20, 2018
Slide 1: FY2018 annual results - 20 Sep 2018
FY2018 annual results - 20 Sep 2018
Slide 2: Disclaimer - Important Notice
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, inducement, invitation, recommendation o
Slide 3: Corporate structure
Corporate structure HK stock code 17/ US ADR NDVLY HK Hang Seng Constituent Stock/ Shanghai Shenzhen connect stock Property development and investment in Hong Kong New World China Land Wholly owned subsidiary Property development and investment in China NWS Holdings HK stock code 659/ Interest: 61%
Slide 4: Financial review
Financial review 17.HK - New World Development 4
Slide 5: Financial highlights
Financial highlights (HK$ million) FY2018 FY2017 YoY change (%) Revenue 60,688.7 56,628.8 7.2% Segment results 15,844.6 14,090.4 12.4% Changes in fair value of investment properties 15,367.1 1,363.8 1,026.8% Profit for the year 27,081.2 10,474.7 158.5% Profit attributable to shareholders of the Comp
Slide 6: Breakdown of underlying profit
Breakdown of underlying profit 30,000 27,081.2 (3,206.5) (15,517.9) 25,000 20,000 15,000 296.3 (781.5) 111.3 (7.7) 2.4 7,977.6 10,000 5,000 - Profit after tax NCI Reversal of fair Release of fair NWSH related NWDS related NWCL related Others Underlying profit value surplus on value gain on IP IP upo
Slide 7: Segment performance
Segment performance (HK$ million) FY2018 FY2017 (1) Property development Revenue Segment results Revenue Segment results Hong Kong 7,141.0 2,864.5 8,538.1 2,277.1 Mainland China 16,239.8 6,611.0 17,429.9 5,229.7 23,380.8 9,475.5 25,968.0 7,506.8 (2) Property investment Hong Kong 1,835.9 1,160.9 1,57
Slide 8: Liquidity and capital resources
Liquidity and capital resources Source of borrowings Floating rate Fixed rate* 63% 37% Maturity profile of borrowings within 1 year in 2nd year in 3rd-5th year after 5 years 13% 21% 54% 12% Currency profile of borrowings HKD USD & others RMB 71% 20% 9% (*Including results of IRS) (As at 30 Jun 2018)
Slide 9: Hong Kong DP and Landbank
Hong Kong DP and Landbank 17.HK - New World Development 9
Slide 10: Hong Kong property sales
Hong Kong property sales Key contributors in FY2018 property development bookings MOUNT PAVILIA PARK VILLA THE MASTERPIECE THE PAVILIA HILL DOUBLE COVE (PH 1-5) HK attributable contracted sales HK$bn 2017.07.01-2018.06.30 24.7 2018.07.01-2018.09.02 1.6 Key contributors in contracted sales in FY2018
Slide 11: Hong Kong property sales
Hong Kong property sales Key projects to be launched No of units Waterloo Road project 240 Sheung Heung Road project 294 Reach Summit 504 Lung Tin Tsuen PH 3 313 Subtotal A 1,351 NWD inventory 246 JV inventory 158 Subtotal B 404* Total (A+B) 1,755 (*As at 2 Sep 2018) 17.HK - New World Development 11
Slide 12: Hong Kong property sales
Hong Kong property sales Key project to be booked in FY2019 • THE PAVILIA BAY • FLEUR PAVILIA • ARTISAN HOUSE • THE PARKVILLE • PARK HILLCREST • MOUNT PAVILIA Total No of units sold Total no of contracted Project as at 2 Sep units sales proceeds 2018 HK$bn THE PAVILIA BAY 983 978 10.0 FLEUR PAVILA 6
Slide 13: Hong Kong landbank
Hong Kong landbank Non- Residential residential Ready landbank (DP + CIP) attributable Total % attributable GFA GFA Hong Kong Island 484,166 495,479 979,645 8.2% Kowloon 578,464 3,638,634 4,217,098 35.2% New Territories 2,900,028 3,876,737 6,776,765 56.6% Total 3,962,658 8,010,850 11,973,508 • New p
Slide 14: China DP and Landbank
China DP and Landbank 17.HK - New World Development 14
Slide 15: Mainland China property sales
Mainland China property sales Key projects booked in FY2018 Guangzhou Covent Garden Shenyang New World Garden Wuhan New World Times Guangzhou Foshan Canton First Estate Langfang New World Garden Contracted sales FY2018 FY2017 Sales proceeds/ RMB bn 16.3 16.2 Overall ASP/ RMB 20,356 18,070 Residentia
Slide 16: Mainland China property sales
Mainland China property sales Development property saleable resources (excl carpark) GFA sq m Residential 686,000 Non residential 834,859 Total 1,520,859 Development property saleable resources (excl carpark) % of total Southern (Guangzhou, Shenzhen, Foshan) 30% Central (Wuhan) 21% Eastern (Ningbo)
Slide 17: Mainland China completion
Mainland China completion Fiscal year/ sq m FY2018 FY2017 % change DP excl. carpark 1,074,164 819,033 31.2% DP incl. carpark 1,105,441 920,053 20.1% IP excl. carpark 103,854 231,805 -55.2% IP incl. carpark 353,364 361,046 -2.1% DP + IP excl. carpark 1,178,018 1,050,838 12.1% DP + IP incl. carpark 1,
Slide 18: Mainland China completion
Mainland China completion FY2019 DP completion Non- Residential Total Carpark forecast sq m residential Guangzhou 159,686 - 159,686 14,211 Foshan 42,023 - 42,023 - Ningbo - 108,391 108,391 153,209 Langfang 55,064 7,249 62,313 57,029 Shenyang 554,529 76,671 631,200 - Others 98,512 58,470 156,982 37,8
Slide 19: Mainland China landbank
Mainland China landbank Total GFA Total GFA Region/ sq m ‘000 (incl (excl % carpark) carpark) Southern region 3,294 2,609 37% Central region 1,689 1,209 17% Eastern region 824 557 8% Northern region 1,171 708 10% Northeastern region 2,316 1,963 28% Total 9,294 7,046 Of which, core projects 7,546 5,6
Slide 20: Mainland China new acquisition and partnership
Mainland China new acquisition and partnership Strategic cooperation with Lo Wu Government . NWCL signed the “Strategic Cooperation Agreement for Economic Belt at Man Kam To Crossing” with the Lo Wu Government in Jan 2018 . Land parcel available for the project modification covers an area of approxi
Slide 21: Hong Kong IP
Hong Kong IP 17.HK - New World Development 21
Slide 22: Hong Kong investment properties
Hong Kong investment properties Key projects in HK FY2018 occupancy Office New World Tower 99% Manning House 98% K11 Atelier 70% Mall HK K11 TST 100% D‧PARK 94% THE FOREST 96% Pearl City 100% Key operations performance in FY2018 Gross rental income HK$1.8 billion HK rental segment margin 63% Footfal
Slide 23: Hong Kong Victoria Dockside
Hong Kong Victoria Dockside GFA breakdown ,000 sq ft Usage Opening K11 ATELIER 435 Office 2017 Q4 Rosewood Hong Kong Hotel 1,106 2019 Q1 Rosewood Residence Serviced apartment K11 MUSEA* 1,156 Retail 2019 Q3 K11 ARTUS 380 Serviced apartment 2019 Q3 Total 3,077 *The portion of 12 Salisbury Road are in
Slide 24: Hong Kong Victoria Dockside
Hong Kong Victoria Dockside K11 ATELIER • Commenced operations in 2017 4Q • Occupancy rate is over 70% • Rental rate achieved regional high K11 MUSEA • Offer world-class experience in retail, art, culture, entertainment and dining • extensive selection of international brands, many of which are pop-
Slide 25: Hong Kong Victoria Dockside
Hong Kong Victoria Dockside Rosewood Hong Kong & residence • Rosewood Hong Kong: 413 rooms • Rosewood Residence: 186 rooms • Schedule to open: 2019 1Q K11 ARTUS • It is the first hospitality extension of K11 • Comprises 287 suites spanning across 14-storey • scheduled to open in summer 2019 17.HK -
Slide 26: Hong Kong Skycity
Hong Kong Skycity Usage ,000 sq ft Dining and retail outlets 2,100 Experience-based entertainment facilities 570 Office space 570 Public facilities and carpark 530 Total 3,770 Development timeline Period To be completed in phases From 2023 to 2027 17.HK - New World Development 26
Slide 27: China IP
China IP 17.HK - New World Development 27
Slide 28: Mainland China investment properties
Mainland China investment properties Key projects FY2018 occupancy Office Wuhan New World International Trade Towers 80% Shanghai K11 – Office 92% Retails Beijing New World Centre 100% Shanghai K11 – Art Mall 96% Guangzhou Central Park-view 89% Serviced Apartment Guangzhou Central Park-view 90% 17.H
Slide 29: FY2018 annual results catalyst recap
Prospects FY2018 annual results catalyst recap Hong Kong property development . Total HK$24.7 bn contracted sales achieved vs HK$10 bn full year target . Ample saleable resources with approximately 1,700 residential units + commercial projects . Contracted sales for FY2019 booking have been majorly
Slide 30: The End
The End
New World Development Company — FY2018 Earnings Presentation on 6ix