CK Asset Holdings Limited · HKEX:1113
CK Asset — H1 2020 Earnings Presentation
33 slides from CK Asset's earnings presentation, Aug 6, 2020
Slide 1: 2020 Interim Results
2020 Interim Results 6 August 2020
Slide 2: Disclaimer
Disclaimer Potential investors and shareholders of the Company (the “Potential Investors and Shareholders”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the Group. The information included is solely for the use in th
Slide 3: 2020 Interim Results Highlights
2020 Interim Results Highlights 35.5% decrease in Underlying EPS, 34.6% decrease in DPS Underlying EPS Net book value Dividend per share per share HK$2.27 HK$0.34 HK$92.72+ Y % -35.5% -34.6% -0.5% +% -39% DPS (HK$/share) 2.5 2 1.5 1 0.5 0 2016 2017 2018 2019 2020 Interim Final +% 3
Slide 4: HK$6,360 million of reported earnings
2020 Interim Results Highlights HK$6,360 million of reported earnings HK$ Million 2020 2019 Change Revenue 36,323 34,008 +7% Underlying profit 8,367 12,989 -36% Change in fair values(1) Real estate investment trusts (1,318) 1,056 Investment properties (689) 1,083 Reported earnings 6,360 15,128 Repor
Slide 5: Principal Activities Analysis
Principal Activities Analysis 34% of our profit contribution is recurrent in nature Revenue by Principal Activities Recurrent Revenue HK$ Million 1H2020 1H2019 HK$16,839M HK$14,776M 43% 46% recurrent recurrent Profit Contribution by Principal Activities Recurrent Profit Contribution HK$ Million 1H20
Slide 6: 2020 Interim Results Highlights by region
2020 Interim Results Highlights 34% contribution from HK, 51% from the Mainland, 15% from Overseas HK$ million HK$ million HK$ Million 2020 Revenue Profit Contribution Hong Kong 10,114 4,630 The Mainland 11,587 6,928 UK 4,575 (1,423) Others 10,047 3,495 Total 36,323 13,630 Note: (1) Profit Contribut
Slide 7: Property Sales
Property Sales 7
Slide 8: Property Sales
Property Sales HK$ Million 2020 2019 Change Revenue 19,484 19,232 +1% Profit contribution 9,004 7,530 +20% Margin 46.2% 39.2% 8
Slide 9: Property Sales
Property Sales HK$ Million Revenue Profit Contribution & Margin 2020 2019 2020 2019 Hong Kong 6,116 15,674 1,768 28.9% 6,653 42.4% The Mainland 10,929 3,428 6,638 60.7% 830 24.2% Overseas 2,439 130 598 24.5% 47 36.2% 9
Slide 10: HK$27,934M contracted sales not yet recognized
Property Sales HK$27,934M contracted sales not yet recognized ● About HK$8,793 million scheduled for recognition in 2020 Hong Kong HK$14,962M The Mainland Overseas HK$12,890M HK$82M 10
Slide 11: Property Rental
Property Rental 11 5 Broadgate, London
Slide 12: Property Rental
Property Rental HK$ Million 2020 2019 Change Revenue 3,453 3,756 -8% Profit 3,169 3,567 -11% contribution Margin 91.8% 95.0% 12 5 Broadgate, London
Slide 13: 16.4 million sq.ft. of investment properties
Cheung Kong Center, Hong Kong 5 Broadgate, London Hong Kong 13.0 million sq.ft. 16.4 million sq.ft. of investment properties The Mainland Overseas 1.9 million sq.ft. 1.5 million sq.ft. M+, Wuhan 13 8
Slide 14: Decrease in fair value of investment properties of HK$809 million
Cheung Kong Center, Hong Kong 5 Broadgate, London Decrease in fair value of investment properties of HK$809 million 4% - 8% cap rate M+, Wuhan 14
Slide 15: Hotel and Serviced Suite Operation
Hotel and Serviced Suite Operation 15
Slide 16: Hotel operation severely hit by the COVID-19 pandemic
Hotel and Serviced Suite Operation Hotel operation severely hit by the COVID-19 pandemic HK$ Million 2020 2019 Change Revenue 992 2,374 -58% Profit contribution 33 876 -96% Margin 3.3% 36.9% 16
Slide 17: Serviced suite operation managed to protect its occupancy
Hotel and Serviced Suite Operation Serviced suite operation managed to protect its occupancy HK$ Million Profit Contribution 2020 2019 Hong Kong 90 897 The Mainland (57) (21) Total 33 876 17
Slide 18: Approximately 15,000 rooms and serviced suites
Hotel and Serviced Suite Operation Approximately 15,000 rooms and serviced suites 23% Average hotel occupancy rate 86% Average serviced suites occupancy rate 18
Slide 19: Property and Project Management
Property and Project Management 19 Stars by the Harbour, Hong Kong
Slide 20: Property and Project Management
Property and Project Management HK$ Million 2020 2019 Change Revenue 403 432 -7% Profit 173 183 -5% contribution Margin 42.9% 42.4% 1881 HERITAGE, Hong Kong 20
Slide 21: Aircraft Leasing
a: ‘eeeeeeee ¢ ceneeee AM Old - AAKKON — » a e ” P iit ~ Aircraft Leasing fe
Slide 22: COVID-19 travel restrictions leading to slump in travel demand
Aircraft Leasing COVID-19 travel restrictions leading to slump in travel demand HK$ Million 2020 2019 Change Revenue 1,520 1,556 -2% (1) Profit contribution 733 717 +2% Margin 48.2% 46.1% Note: (1) Profit Contribution for 2020 includes a gain of HK$195 million on disposal of aircraft. 22
Slide 23: Aircraft Leasing: 126 Aircraft
Aircraft Leasing HK$ Million Profit Contribution Lessee’s Place of Operation 2020 2019 Asia 256 272 Europe 164 219 North America 256 174 Latin America 57 52 Total 733 717 126 Aircraft Average remaining Average age lease term (121 narrow body; 6.3 years 5 wide body) 4.6 years 23
Slide 24: Pub Operation
<¢ 2 ~ oO = cD) [ok Oo 2 =) a.
Slide 25: Pub Operation
Pub PubOperation Operation A leading integrated brewer and pub retailer operating about 2,700 pubs restaurants and hotels across England, Wales and Scotland Pub Company Operates food-led and drink-led destination pubs and restaurants and community-focused local pubs Pub Partners Owns a portfolio of
Slide 26: Lockdown and mandated closure of pubs resulting in operating loss
Pub Operation Lockdown and mandated closure of pubs resulting in operating loss Pub Pub Brewing & 2020 Total 2019 Total Company Partners Brands Change HK$ Million HK$ Million HK$ Million HK$ Million HK$ Million Revenue 3,078 310 474 3,862 - - Profit (1) (1,574) (35) (329) (1,938) - - contribution Ma
Slide 27: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Over HK$4 billion profit contribution Infrastructure and Utility Asset Operation 27
Slide 28: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Infrastructure and Utility Asset Operation Over HK$4 billion profit contribution CK William JV CKP (Canada) JV Sarvana JV Other 2020 2019 40% JV 75% JV 65% JV investments Total Total Change (DUET Group) (Reliance Group) (ista Group) HK$ Million HK$ Million
Slide 29: Interests in Real Estate Investment Trusts
Interests in Real Estate Investment Trusts HK$347 million(1) total distribution received HK$ Million 2020 2019 Share of profit of Hui Xian REIT 99 166 Cash distributions received from Fortune REIT 157 156 and Prosperity REIT 256 322 Hui Xian REIT Fortune REIT Prosperity REIT Interest as of 30 June 2
Slide 30: Gearing and Maturity Profile
Gearing and Maturity Profile Bank and other borrowings with maturities HK$ Billion Within one year 12.8 Within two to five years 47.6 Beyond five years 16.3 Total 76.7 Bank balances and deposits 58.9 Net debt 17.8 5.2% Net Debt to Shareholders’ Funds Corporate Ratings: Moody’s: A2 (Stable) 4.7% Net
Slide 31: Landbank Summary
Landbank Summary Total landbank of 144 million sq.ft. Hong Kong The Mainland Overseas Total(1)(2) Million sq.ft. Million sq.ft. Million sq.ft. Million sq.ft. Properties under 5 83 4 92 Development Investment Properties 13 2 2 17 Hotels and Serviced Suites 8 1 - 9 Pub Properties - - 26 26 Total 26 86
Slide 32: Landbank Summary: Major Property Acquisition in Hong Kong
Landbank Summary Major Property Acquisition in Hong Kong Approximate Developable Date Project Location Group’s Interest Gross Floor Area (sq.ft.) Anderson Road, Kwun May 2020 Tong (Survey District 1,089,145 100% No. 3, Lot No. 1069) 32
Slide 33: Thank you
RYE TER RA BR ZS] CK ASSET HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability - Stock Code: 1113) Thank you