Fse Lifestyle Services Limited · HKEX:331
Fse Lifestyle Services — FY2024 Earnings Presentation
32 slides from Fse Lifestyle Services's earnings presentation, September 2024
Slide 1: FY2024 Annual Results Analyst Presentation
FY2024 ANNUAL RESULTS Year Ended 30 June 2024 ANALYST PRESENTATION Sep 2024 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: Financial Results Summary
1. Financial Results 1.1 Summary Turnover $8,448M ↑9% Reported earnings $501M ↓4% Core earnings $475M ↑13% (excluding grants & COVID-related works) | 4
Slide 5: Earnings Analysis
1.2 Earnings Analysis Jun 2024 Jun 2023 Change Change $’M $’M $’M % Reported earnings 501.1 522.9 (21.8) (4.2%) Excluding: Government grants (25.8) (77.0) 51.2 COVID-related works (0.2) (26.8) 26.6 Core earnings 475.1 419.1 56.0 13.4% | 5
Slide 6: Segmental Results: Property & Facility Management
2. Segmental Results* a) Property & Facility Management Turnover $664M ↓6% Reported earnings $104M ↓23% Core earnings $81M ↑17% (excluding grants & COVID-related works) * Including unallocated corporate expenses | 6
Slide 7: 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 One Beacon Hill K11 Masterpiece Neich Tower Agency FSE Lifestyle Services Limited | 7
Slide 8: City Essential Results
b) City Essential Turnover $4,459M ↑18% Reported earnings $215M ↑3% Core earnings $215M ↑17% (excluding grants & COVID-related works) | 8
Slide 9: City Essential Segment
City Essential Segment FY2024 FY2023 % Turnover Turnover Changes ($’M) ($’M) City Essential (CITES) Cleaning & pest control 2,350 1,731 36% Insurance solutions 114 110 4% Technical support & maintenance 1,060 963 10% Environmental solutions 304 329 (8%) Systems security, guarding & event 631 634 - T
Slide 10: Over 320 cleaning service contracts
City Essential Segment (i) Cleaning & Pest Control - Waihong Over 320 cleaning service contracts MTR - Stations, Tracks & Tunnels Hong Kong Children’s Hospital KAI TAK AIRSIDE Hong Kong Airport and Depots FSE Lifestyle Services Limited | 10
Slide 11: Over 3,800 insurance solutions contracts
City Essential Segment (ii) Insurance Solutions - Nova Over 3,800 insurance solutions contracts The Hong Kong Management Association Citybus Limited Macau Grand Prix FSE Lifestyle Services Limited | 11
Slide 12: Over 3,400 technical support and maintenance service contracts
City Essential Segment (iii) Technical Support & Maintenance - Far East/Turning Over 3,400 technical support and maintenance service contracts Mega Box Nina Tower International Finance Centre 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 Lyric Theatre Complex Kai Tak Sports Park EV Charger at Sea Water Diocesan Girl’s School – Water Feature System – The Paramount – Electro-chlorination System – Green Solutio
Slide 14: Over 550 security guarding, systems and event services 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
City Essential Segment (v) Systems Security, Guarding & Event Services – General Security/Perfect Event HKJC Racecourses HKCEC Outdoor Events Music Concerts Hang Lung Properties Private Events Property Sale Events FSE Lifestyle Services Limited | 15
Slide 16: E&M Results
c) E&M Turnover $3,325M ↑1% Reported earnings $182M ↑1% Core earnings $179M ↑8% (excluding grants) | 16
Slide 17: Over 130 E&M services contracts
E&M Segment FSE Engineering/Majestic/Young’s Over 130 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: Group and Segment Results Overview
Turnover $8,448M ↑9% Reported earnings $501M ↓4% Core earnings $475M ↑13% (excluding grants & COVID-related works) Property & Facility Management City Essential E&M Turnover $664M ↓6% Turnover $4,459M ↑18% Turnover $3,325M ↑1% Reported earnings $104M ↓23% Reported earnings $215M ↑3% Reported earning
Slide 19: Market Position - Frost & Sullivan Report
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 |
Slide 20: Market Position - Frost & Sullivan Report
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% | 20
Slide 21: Dividend History
4. Dividend History Steady Returns to Shareholders Total dividend per share since IPO $2.798, representing 102% of IPO price 8.8 8.3 8.2 7.9 7.4 ($) 0.5 0.450 0.450 0.458 0.438 0.4 0.161 0.213 0.241 0.214 0.3 0.272 0.2 0.144 0.289 0.245 0.224 0.1 0.209 0.128 0 6/20 6/21 6/22 6/23 6/24 Interim Divide
Slide 22: 8-Year Achievements: EPS
5. 8-Year Achievements 16% CAGR EPS FY2017-24 (Reported) ($) 1.29 1.20 1.14 1.10 1.09 0.17 0.06 0.20 0.80 0.76 0.68 0.46 0.52 0.43 0.11 0.53 0.55 0.13 0.16 0.17 0.40 0.39 0.30 0.18 0.21 0.21 0.18 0.47 0.51 0.51 0.25 0.23 0.18 0.19 0.18 0.00 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Acq
Slide 23: 13% CAGR Turnover FY2017-24
13% CAGR Turnover FY2017-24 (Reported) ($’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 4,000 3,700 2,639 2,172 3,000 1,931 1,993 2,000 4,115 3,712 3,351 2,759 1,000 2,292 2,142 1,769 1,763 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
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 73 200 57 78 174 134 86 93 82 92 215 234 231 100 114 103 82 87 87 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Acquisition of Acquisition of Acquisition of Waihong & NCL Ur
Slide 25: 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 18,916 4,600 17,047 17,719 17,109 22% 14,687 (恒生指數) 3,296 2,444 1,777 1,846 1,638 1,463 68% $6.03 (恒生物業服務及管理指數) $5.68 $5.62 $5.44 $5.39 $5.15 $4.51 5% (豐盛
Slide 26: Remaining Works
7. Remaining Works ($’M) 14,000 13,522 13,016 885 ↓8% 963 ↓9% 12,000 10,000 6,851 6,196 ↑11% 8,000 6,000 4,000 5,857 5,786 ↓1% 2,000 0 Jun Jun2023 2023 Jun Jun2024 2024 FSE Lifestyle Services Limited | 26
Slide 27: Segment AOP - FY2024
8. Segment AOP* – FY2024 Non-E&M Recurring Businesses remain solid, contribute 64% AOP and growing $224M $109M Property & Facility Management 21% City Essential 43% E&M 36% $190M * Based on Net Profit including government grants but excluding unallocated corporate expenses FSE Lifestyle Services Lim
Slide 28: 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: Capital Structure
10. Capital Structure With financial flexibility and funding certainty As at 30 June 2024 Banking Facilities Cash and Banks Debt Maturity Profile $1,027M $574M, 96% (in HK$M) Total Total Jul 24 17 $3,135M $601M Dec 24 219 $13M, 2% (Note 1) $14M, 2% Zero net gearing ratio $2,108M Unutilised HKD Utili
Slide 30: 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 $475m - New contract award $7.4b - Strong order book $24b - Healthy remaining works $13b High Dividend Yield, Consist
Slide 31: 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 - Proposed acquisition o
Slide 32: Q&A
Q&A FSE Lifestyle Services Limited | 32
FSE Lifestyle Services — FY2024 Earnings Presentation on 6ix