Fse Lifestyle Services Limited · HKEX:331

Fse Lifestyle Services — 1H FY2023 Earnings Presentation

32 slides from Fse Lifestyle Services's earnings presentation, February 2023

  1. Slide 1: Interim Results: Analyst Presentation

    INTERIM RESULTS 6 Months to 31 December 2022 ANALYST PRESENTATION Feb 2023 FSE Lifestyle Services Limited 1

  2. Slide 2: Business Segments

    Business Segments FSE Lifestyle Services Limited (Stock code: 331) 100% 100% 100% Property & Facility City Essential E&M Management Services Services Services Waihong Far East Turning Technical Urban Kiu Lok Perfect FSE Engineering General Event Nova Security Majestic Engineering Services Young’s En

  3. Slide 3: Reported Earnings

    Reported Earnings $238M $279M 17% 1H 2022 1H 2023 Interim dividend per share $0.245 and a dividend payout ratio 40% FSE Lifestyle Services Limited |3

  4. Slide 4: Core Earnings

    Core Earnings $215M $234M 9% 1H 2022 1H 2023 Government grants $340M Excluding government grants $23M Excluding government grants $45M Non-recurring items: Loss related to laundry business disposal ($46M) One-off professional fees for acquisition ($14M) FSE Lifestyle Services Limited |4

  5. Slide 5: Group turnover

    Group turnover $3,351M $3,712M 11% 1H 2022 1H 2023 FSE Lifestyle Services Limited |5

  6. Slide 6: 23% CAGR EPS FY2017-22 (Reported)

    23% CAGR EPS FY2017-22 (Reported) (in HK$) 1.60 1.29 1.20 1.10 0.20 0.80 0.76 0.68 0.43 0.61 0.53 0.55 0.11 0.10 0.39 0.13 0.16 0.17 0.40 0.21 0.21 0.30 0.18 0.18 0.47 0.51 0.18 0.19 0.25 0.23 0.18 - FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 1H 2023 Acquisition of Acquisition of Acquisition of Waiho

  7. Slide 7: Higher Return to Shareholders

    Higher Return to Shareholders Total dividend per share since IPO $2.147, representing 78% of IPO price 8.9 8.3 7.4 7.4 (in HK$) 7.0 0.5 6.2 5.9 0.45 0.45 0.4 0.161 0.241 0.3 0.272 0.245 0.211 0.22 0.2 0.144 0.144 0.155 0.119 0.133 0.289 0.081 0.245 0.1 0.094 0.209 0.128 0.101 0.074 0.078 0.05 0 6/16

  8. Slide 8: 14% CAGR Turnover FY2017-22 (Reported)

    14% CAGR Turnover FY2017-22 (Reported) (HK$’M) 8,000 6,967 7,000 6,453 6,000 774 4,927 4,931 4,882 3,616 5,000 568 1,171 2,920 4,000 3,700 3,712 2,639 2,172 3,000 1,931 1,993 2,000 3,351 3,712 2,759 1,000 2,292 2,142 1,769 1,763 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 1H 2023 Acquisition of Acqu

  9. Slide 9: 24% CAGR Profit FY2017-22 (Reported)

    24% CAGR Profit FY2017-22 (Reported) (HK$’M) 600 587 500 88 340 400 310 200 300 48 279 248 237 45 73 200 57 78 174 134 93 86 92 82 234 100 215 87 114 103 87 82 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 1H 2023 Acquisition of Acquisition of Acquisition of Waihong & NCL Urban & Kiu Lok Nova, HKIL &

  10. Slide 10: Segment AOP – 1H 2023

    Segment AOP* – 1H 2023 Non-E&M Segments contribute 66% AOP and growing $121M $69M Property & Facility Management City Essential 24% 42% E&M 34% $97M * Based on Net Profit including government grants but excluding unallocated corporate expenses FSE Lifestyle Services Limited | 10

  11. Slide 11: Property & Facility Management

    Property & Facility Management Over 280 property and facility management contracts Over 300 property and facility management contracts Government Property HKU Senior Staff Quarters K11 Masterpiece EcoPark Agency FSE Lifestyle Services Limited | 11

  12. Slide 12: Property & Facility Management

    Property & Facility Management Turnover Profit (HK$M) (HK$M) 80 450 70 350 60 50 250 40 69 343 357 61 30 150 20 50 10 1H 2022 1H 2023 1H 2022 1H 2023 FSE Lifestyle Services Limited | 12

  13. Slide 13: City Essential Services: Cleaning

    City Essential Services (i) Cleaning - Waihong Over 290 cleaning service contracts 11 SKIES Hong Kong Airport Hong Kong Disneyland Leisure and Cultural Services Department FSE Lifestyle Services Limited | 13

  14. Slide 14: City Essential Services: Cleaning Turnover

    City Essential Services (i) Cleaning - Waihong Turnover (HK$’M) 1,000 900 800 700 Shatin Racecourse 600 500 827 675 400 300 Link C5 & C8 200 1H 2022 1H 2023 FSE Lifestyle Services Limited | 14

  15. Slide 15: City Essential Services: Technical Support & Maintenance

    City Essential Services (ii) Technical Support & Maintenance - Far East/Turning Over 2,500 technical support and maintenance service contracts Chinese YMCA Headquarter Link Venetian, Macao EMSD FSE Lifestyle Services Limited | 15

  16. Slide 16: Technical Support & Maintenance Turnover

    City Essential Services (ii) Technical Support & Maintenance - Far East/Turning Turnover (HK$’M) 600 500 EMSD 400 300 461 422 200 100 1H 2022 1H 2023 HKCEC FSE Lifestyle Services Limited | 16

  17. Slide 17: City Essential Services: Security Guarding & Event Services

    City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event Over 600 security guarding, security systems and event services contracts MTR Properties New World Properties Kai Tak Sports Park FSE Related Projects FSE Lifestyle Services Limited | 17

  18. Slide 18: Security Guarding & Event Services

    City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event HKJC Racecourses HKCEC AsiaWorld-Expo Music Concerts Legislative Council Elections Event Organisers FSE Lifestyle Services Limited | 18

  19. Slide 19: Security Guarding & Event Services Turnover

    City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event Turnover (HK$’M) 335 330 325 AsiaWorld-Expo 320 332 315 326 310 305 HKJC Racecourses 300 1H 2022 1H 2023 FSE Lifestyle Services Limited | 19

  20. Slide 20: City Essential Services: Insurance Solutions

    City Essential Services (iv) Insurance Solutions - NOVA Over 4,000 insurance solutions contracts Hung Fook Tong HKCEC Veolia – Kai Tak Sports Park NENT Landfill Extension FSE Lifestyle Services Limited | 20

  21. Slide 21: Insurance Solutions Turnover

    City Essential Services (iv) Insurance Solutions - NOVA Turnover (HK$’M) 70 District Court at Caroline Hill Road 60 50 61 40 51 30 1H 2022 1H 2023 Kai Tak Hospital Site A FSE Lifestyle Services Limited | 21

  22. Slide 22: City Essential Services: Environmental Solutions

    City Essential Services (v) Environmental Solutions – FSE Environmental/Extensive/HKIL Over 1,000 environmental solutions contracts Additional DCS at Kai Tak – 11 SKIES – Hong Lok Yuen – Kai Tak Sports Park – Sea Water Electro-chlorination Extra Low Voltage Landscaping Building Materials System FSE

  23. Slide 23: Environmental Solutions Turnover

    City Essential Services (v) Environmental Solutions – FSE Environmental/Extensive/HKIL Turnover (HK$’M) 200 180 160 140 120 Kai Tak Sports Park 100 168 80 118 60 11 SKIES 40 20 1H 2022 1H 2023 FSE Lifestyle Services Limited | 23

  24. Slide 24: City Essential Services: Segment Highlight

    City Essential Services Segment Highlight Turnover Profit (HK$’M) (HK$’M) 2,500 2,250 2,000 150 1,750 1,500 100 1,250 1,849 1,592 121 1,000 50 104 750 500 0 1H 2022 1H 2023 1H 2022 1H 2023 FSE Lifestyle Services Limited | 24

  25. Slide 25: E&M Services

    E&M Services FSE Engineering/Majestic/Young’s Over 100 E&M services contracts Expansion of LegCo ExpansionComplex of LegCo District Court at Caroline Complex Hill Road 杭州恒隆廣場 寧波新世界廣場 FSE Lifestyle Services Limited | 25

  26. Slide 26: E&M Services: Segment Highlight

    E&M Services Segment Highlight Turnover Profit (HK$’M) (HK$’M) 1,900 135 1,700 1,500 110 1,300 85 1,100 1,506 60 1,416 97 900 76 35 700 500 10 1H 2022 1H 2023 1H 2022 1H 2023 FSE Lifestyle Services Limited | 26

  27. Slide 27: Remaining Works

    REMAINING WORKS ↑20% ($’M) 12,000 10,000 8,000 ↑32% 6,000 ↑12% 12,758 10,662 4,000 6,690 ↓3% 5,085 2,000 4,415 4,945 1,162 1,123 0 Jun 22 Dec 22 Jun 22 Dec 22 Jun 22E&M Dec 22 Jun 22 Dec 22 Property & facility City Essential Total management Property & facility City Essential E&M TOTAL management FS

  28. Slide 28: Capital Structure

    Capital Structure As at 31 December 2022 Banking Facilities Cash and Banks Debt Maturity Profile $996M $668M, 94% (in HK$M) Jun 23 129 Total Total $2,705M $713M Dec 24 264 $21M, 3% $24M, 3% Zero net gearing ratio $1,709M Unutilised HKD Utilised RMB Others FSE Lifestyle Services Limited | 28

  29. Slide 29: Why FSE Lifestyle?

    Why FSE Lifestyle? High Dividend Yield - Average 8% yield - Outperformed HSI and HSPSMI in the past year Growth - 14% CAGR Turnover FY2017-22 - 24% CAGR Profit FY2017-22 Strong Governance & Capital Management - High caliber management team - Commitment to ESG & CSR - Zero net gearing - Ample facilit

  30. Slide 30: A Unique Diversified Integrated Conglomerate

    A Unique Diversified Integrated Conglomerate (Multi Service Lines) Strong Cross- selling Synergies Organic Growth through FSE ECOSYSTEM Diversified High Income Quality Streams FSE Lifestyle Services Limited | 30

  31. Slide 31: Resilient Business with Growth

    Resilient Business with Growth Unique, complementary Solid interim and Integrated results despite Brand COVID-19 Strong financial FSE High dividend Strong order differentiation, impacts, core position, zero Ecosystem, yield, 8% p.a book $21b preparing next earnings net gearing historical high phase

  32. Slide 32: Q&A

    Q&A FSE Lifestyle Services Limited | 32

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