Wharf (Holdings) Ltd. · HKEX:4
Wharf (Holdings) — The Wharf (Holdings) — Investor Presentation (December 2011)
43 slides from Wharf (Holdings)'s investor presentation, December 2011
Slide 1: The Wharf (Holdings) Limited
The Wharf (Holdings) Limited Established 1886 Wheelock Square Shanghai The Wharf December 2011 (Holdings) Limited 1
Slide 2: Wharf Corporate Profile
Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus is in Properties which represented 91% of business assets as at 30.6.11 Strategic differentiation is manifested in the success of Harbour City and Times Square, which represented 6
Slide 3: Wharf Corporate Structure
Wharf Corporate Structure Wheelock and Company Limited (HKEx Stock Code: 0020.HK) The Wharf (Holdings) Limited (HKEx Stock Code: 0004.HK) Hong Kong China Non Property Properties Properties Businesses* * Include Modern Terminals, HK Air Cargo Terminals, Marco Polo Hotels, & Communication, Media and E
Slide 4: Corporate Business Structure
Corporate Business Structure Mr. Peter Woo, GBS, JP Chairman Mr. Stephen Ng Deputy Chairman & MD HK & China IP HK DP China DP Non Property Mr Douglas Woo Mr Andrew Chow Vice Chairman & MD Chairman Ms. Doreen Lee Mr. Stephen Ng Senior MD Mr TY Ng Chairman Mr. Ricky Wong Vice Chairman & MD Senior MD W
Slide 5: China – Phases of economic development
China – Phases of economic development Experimentation Special economic zones in coastal cities as China’s nationwide infrastructure (1978 - 1992) support was inadequate Execution & Growth In 1992, Shanghai economy was opened & other cities swiftly followed (1992 - today) Economic growth suppo
Slide 6: China – Rail grid will change life
China – Rail grid will change life High speed rail will reduce travelling time between major Chinese cities by 60% to create the one-day living sphere … … Beijing Wuhan Shanghai Chengdu Guangzhou Source: CB Richard Ellis The Wharf (Holdings) Limited 6
Slide 7: China – Expand with metropolitan zones
China – Expand with metropolitan zones The nine city clusters account for 52% of population & 74% of GDP* “There will be 8 mega cities by 2025 as compared with 2 in 2005, housing 41% of China’s higher income class living. Overall, China is heading towards a dispersed urbanization pattern with midsiz
Slide 8: Hong Kong – A unique position
Hong Kong – A unique position A unique city driven by China’s growth and its own characters ...... China HK Economic Partnership continues HK companies has facilitated China’s economic growth since 1978, initially along the Southern Coastal Provinces before moving to inland Provinces HK is the
Slide 9: Hong Kong – Favorable China's policy
Hong Kong – Favorable China’s policy The 12th Five-Year Plan (2011-2015) offer ample opportunities for HK companies… Key theme is to change the economic development model for China: Moving up the value chain; reducing reliance on low cost manufacturing Stimulating domestic demand as a key driv
Slide 10: Hong Kong Properties
Hong Kong Properties The HK investment portfolio represents 8.3% HK’s retail sales …. With a combined value of HK$119B at 30.6.11, Harbour City and Times Square represented 47% of the business assets of the Group, and generated 64% of operating profit In 1H11, retail sales at Harbour City and Ti
Slide 11: Hong Kong Properties – Harbour City
Hong Kong Properties – Harbour City Building for Tomorrow… from a wharf godown to a shopping mall... Early 80’s Now The Wharf (Holdings) Limited 11
Slide 12: Hong Kong Properties – Harbour City
Hong Kong Properties – Harbour City A record performance…… Property Value (excl. Hotels) Attributable 1H11 1H10 % FY10 at 30.6.11: HK$87.1B GFA (s.f.) (HK$M) (HK$M) Change (HK$M) Retail 1,948,000 1,723 1,437 +20% 2,928 Office 4,435,000 787 774 +2% 1,553 Serviced Apartments 670,000 145 132 +10% 275 H
Slide 13: Hong Kong Properties – Harbour City
Hong Kong Properties – Harbour City Harbour City generated 6.2% of HK retail sales, envy of others…… Largest mall in town, representing 75% of retail area of Canton Road Retail generated 54% of HC’s revenue in 1H11 from only 23% of HC’s area Retail sales: +35% for 10/2011 YTD, outperformed HK
Slide 14: Hong Kong Properties – Harbour City
Hong Kong Properties – Harbour City Strong performance from other components…… Office Serviced Apartments Occupancy and spot rent trended up Occupancy at 30.6.11: 94% strongly during 1H11 Favorable rental growth Occupancy at 30.6.11: 95% Lease renewal retention rate: 73% The Wharf (Holding
Slide 15: Hong Kong Properties – Times Square
Hong Kong Properties – Times Square Building for Tomorrow… from a tram depot to a shopping mall... Late 80’s Now The Wharf (Holdings) Limited 15
Slide 16: Hong Kong Properties – Times Square
Hong Kong Properties – Times Square A record performance…… Property Value at Attributable GFA 1H11 1H10 % FY10 30.6.11: HK$32B (s.f.) (HK$M) (HK$M) Change (HK$M) Retail 936,000 587 512 +15% 1,076 Office 1,033,000 228 226 +1% 457 Total: 1,969,000 815 738 +10% 1,533 The Wharf (Holdings) Limited 16
Slide 17: Hong Kong Properties – Times Square
Hong Kong Properties – Times Square Times Square is the most successful vertical shopping mall in HK…... Retail Office Full occupancy Occupancy at 30.6.11: 96%, strong Retail generated 72% of TS’s growth in spot rents in 1H11 revenue in 1H11 while represents Lease renewal retention rate: 28%
Slide 18: Other Hong Kong Properties
Other Hong Kong Properties Victoria Peak is the most sought after residential address in HK The Peak Portfolio (400,000 s.f.): Existing developments – 1H11 occupancy: 90%+, strong rental growth Mt Nicholson - master layout plan & GBP approved No. 1 Plantation Road, Mountain Court, Chelsea Cour
Slide 19: Other Hong Kong Properties – Mt Nicholson
Other Hong Kong Properties – Mt Nicholson Mt Nicholson services the top 1-2% of most affluent in Asia… A unique, rare and high quality development Private half-mile access road offers ultimate privacy Rare low density site on HK Island Ultimate top social status & recognition World class d
Slide 20: China Properties – Building for tomorrow
China Properties – Building for tomorrow Wharf China has expanded to 5 regions,13 cities, 40+ projects… Others: Dalian Tianjin Wuhan Changsha China East: Changzhou Wuxi Suzhou Shanghai Hangzhou China West: Ningbo Chengdu Chongqing Foshan …with a team of over 1000 professionals. The Wharf (Holdings)
Slide 21: China Properties – Building for Tomorrow
China Properties – Building for Tomorrow PRC assets reached 39% of Group assets at 6/2011... ... Acquired sites in 1H11 in Changsha, Hangzhou, Suzhou & Foshan (attributable GFA: 2M s.m.) for RMB13B China Land bank: +17% to 12.4M s.m. at 6/2011, spanning across 13 Portfolio cities; on track to ne
Slide 22: China Properties – Landbank
China Properties – Landbank China landbank on course for the 15M s.m. milestone…… GFA by Region GFA by Land Use Region Attributable GFA s.m. Retail Office 8% East 6.3M 15% West 4.3M Hotel 3% Others 1.8M TOTAL 12.4M Residential 74% 12.4M s.m. landbank split by cities RMB 65.4B cost split by cities Ch
Slide 23: China Development Properties
China Development Properties New Growth Engine… … 1H11 Turnover: +31% to HK$1,343M (FY10: HK$3.6B) 1H11 Operating Margin: 42% Contracted Sales to 10/2011: RMB11.2B Mr Andrew Chow Chairman 2011 completion target: 550,000 s.m. (1H11: 160,000 s.m.) Mr T Y Ng Vice Chairman The Wharf (Holdings) L
Slide 24: China Development Properties – Sales
China Development Properties – Sales Sales diversity to minimize concentration risk…… Attributable Attributable Average Price New projects City Product GFA sold (sm) ^ Proceeds (RMB psm) ^ (RMB’M) ^ Times City Suzhou High-rise 29,000 410 13,900 The U World Chongqing High-rise 32,000 715 22,100 Peace
Slide 25: China Development Properties
China Development Properties PRC property progress as planned…… 2009-2011 Contracted Sales 2010-2013 Project Completions RMB'B 000's.m. 15 2500 2,100* 2000 1,600* 10 1500 15.0* 5 1000 8.8 550 500 281 4.6 0 0 2009 2010 2011 2010 2011 2012 2013 *provisional data The Wharf (Holdings) Limited 25
Slide 26: China Investment Properties
China Investment Properties IP portfolio will grow when 5 IFCs will be rolled out (2013-2016) Shanghai Wheelock Square Suzhou IFC Wuxi IFC (2016) Suzhou IFC Chengdu IFC (2013) Changsha IFC (2016) Chongqing IFC (2015) The Wharf (Holdings) Limited 26
Slide 27: China Investment Properties
China Investment Properties Recurrent rental earnings boosted by Wheelock Square…… 1H11 Performance Turnover: +34% to HK$317M (FY10: HK$470M) Operating profit: +39% to HK$193M Over 70% office area at Shanghai Wheelock Square leased, with latest monthly rental rates at over RMB400psm Chongqin
Slide 28: China Investment Properties
China Investment Properties Recurrent earning base will substantially increase from 2013…… IP Portfolio GFA^ growth over time 000's.m. 2500 2,300 Completion timetable 2000 Chengdu IFC 2013-15 1500 Chongqing IFC 2014-15 1,100 Wuxi IFC By 2015 1000 665 Suzhou IFC By 2016 500 379* 379 379 Cha
Slide 29: 2010 Economic Indicators
2010 Economic Indicators Untapped potential to be realized…… Mainland Chengdu Chongqing Wuxi Suzhou Changsha GDP Growth 10.3% 15.0% 17.1% 13.1% 13.2% 15.5% Population (’M) 1,341 11 29 6 6 7 Retail sales 18.3% 24.0% 18.5% 18.6% 18.7% 19.9% growth Urban disposable 19,000 21,000 18,000 28,000 33,000 23
Slide 30: China Investment Properties – Wheelock Square
China Investment Properties – Wheelock Square Tallest Landmark office tower in Puxi at 270 metres… Brand new landmark office tower with GFA of 114,000 s.m. The tallest building in Puxi (270-metre) overlooking Jing’an Park Currently, over 80% committed; latest monthly rental rates at over RMB40
Slide 31: China Investment Properties – IFC Series
China Investment Properties – IFC Series 5 IFCs to be rolled out in 2013-2016…… Chengdu IFC – GFA 439,000 s.m.* The Group’s next flagship IP in the busiest pedestrian shopping area of Chengdu. Comprises retail, Grade A offices, 5-star hotel and luxury residences Construction of Phase 1 (retail
Slide 32: China Investment Properties – IFC Series
China Investment Properties – IFC Series 5 IFCs to be rolled out in 2013-2016…… Suzhou IFC - GFA 351,000 s.m.* Tallest skyscraper in Suzhou overlooking Jinji Lake Comprises Grade A offices, 5-star hotel and luxury apartments Wuxi IFC – GFA 280,000 s.m.* Tallest skyscraper in Taihu Plaza, Wuxi’
Slide 33: Other Non-Property Businesses
Other Non-Property Businesses Strong recurring income base…… Mr. Stephen Ng Chairman Hotel MTL CME The Wharf (Holdings) Limited 33
Slide 34: Marco Polo Hotels
Marco Polo Hotels A solid performer…… 10 operating Marco Polo hotels in Asia Pacific region 1H11 Revenue: +11% to HK$593M (FY10: HK$1.2B) Awarded “Best International Hotel Management Group of China” by China Hotel Starlight Awards in 3/2011 The managed Marco Polo Foshan in Lingnan Tiandi wil
Slide 35: Modern Terminals
Modern Terminals The first container terminal operator in HK, 33% market share today…… 1H11 Revenue: +6% to HK$1,620M (FY10: HK$3.3B) Leveraging on HK base, expand into Pearl River Delta and Yangtze River Delta, the 2 largest manufacturing hubs in PRC: PRD: Da Chan Bay (DCB) YRD: Taicang Int
Slide 36: Communication, Media & Entertainment
Communication, Media & Entertainment Steady results…… i-CABLE CABLE TV is the first multi-channel Pay TV service in HK; subscribers' base exceeds 1.1M 1H11 Revenue: +9% to HK1,051M (FY10: HK$2.0B) Wharf T&T Wharf T&T is the second largest fixed line operator and the first and only comprehensiv
Slide 37: Financial Highlights – 1H2011
Financial Highlights – 1H2011 1H11 1H10 (HK$M) (HK$M) Turnover 9,745 8,622 Operating Profit 4,980 4,516 Profit attributable to equity shareholders 14,302 10,892 EPS (HK$) 4.84 3.85 EPS before Property Revaluation Surplus (HK$) 1.11 1.49 DPS (HK$) 0.36 0.36 As at As at 30.6.11 31.12.10 Total assets 2
Slide 38: Financial Highlights – FY2010
Financial Highlights – FY2010 FY10 FY09 (HK$M) (HK$M) Turnover 19,380 17,553 Operating Profit 9,372 8,554 Profit attributable to equity shareholders 35,750 19,256 EPS (HK$) 12.98 6.99 EPS before Property Revaluation Surplus (HK$) 2.87 2.84 DPS (HK$) 1.00 1.00 As at As at 31.12.10 31.12.09 Total asse
Slide 39: Financial Highlights
Financial Highlights Hong Kong properties remain the driver; China is growing…… % of Group Total Business Assets % of Group Operating Profit 1% 3% 8% 14% 34% 16% 57% 67% HK Properties (excl. Hotels) China Properties HK$257.1B Logistics HK$5.0B CME & Others * China assets: 39% as at 30.6.11 (Properti
Slide 40: Financial Highlights
Financial Highlights Prudent financial management with 21.9% gearing…… 30.6.11 31.12.10 Net debt (HK$’M) (HK$’M) Wharf (excluding below subsidiaries) 33,503 23,376 MTL 11,054 9,932 HCDL (1,694) (172) i-CABLE (369) (447) Total: 42,494 32,689 Gearing (net debt to total equity*) 21.9% 19.2% *Wharf rais
Slide 41: Financial Highlights
Financial Highlights Multiple sources of income and funding…… Strong recurring income base Investment Properties – Harbour City, Times Square, China IPs Logistics and Hotels Multiple sources of funding and revenue Equity - HK$10B rights issue in 3/2011 Debt - HK$6.2B CB in 6/2011 - S$670
Slide 42: End of Presentation
End of Presentation Wheelock and Company Limited [HKEx Stock Code: 0020.HK] The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK] Disclaimer All information and data are provided for information purposes only. All opinions included herein constitute Wharf’s judgment as of the date hereof and are s
Slide 43: Appendix
Appendix Conversion Reference US$ 1 = HK$ 7.80* HK$ 1 = US$ 0.128 US$ 1 = RMB 6.365^ RMB 1 = US$ 0.157 1 Sq foot = 0.0929 Sq metre 1 Sq metre = 10.764 Sq feet * - Under the Linked Exchange Rate System of Hong Kong, HK Dollar is fixed with US Dollar ^ - The mid-rate as announced by The People’s Bank
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