Far East Consortium International Limited · HKEX:35
Far East Consortium International — FY2021 Earnings Presentation
49 slides from Far East Consortium International's earnings presentation, June 2021
Slide 1: FY2021 Annual Results
(Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號︰035 FY2021 Annual Results June 2021 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Far East Consortium International Limited (the “Company”) solely for information purposes. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to purchase or subscrib
Slide 3: Table of Contents
Table of Contents 1. FY2021 Annual Results Summary 2. Review of Operations 3. Prospects 4. Appendices 3
Slide 4: 1. FY2021 Annual Results Summary
1. FY2021 Annual Results Summary Concept of Queen’s Wharf Brisbane 4
Slide 5: Key Takeaways of FY2021
Key Takeaways of FY2021 Increased profit despite COVID-19 • Diversification: By geography and business segments • Proactive steps: Aggressively cut costs and repositioned select hotels • Active asset management: Sold retail components of Artra and Astoria Crest, Hong Kong; signed an 18-year lease in
Slide 6: Recent Developments
Recent Developments AUD500 mn RMBS deal by BC Acquisition of land in Hong Kong Disposal of Dorsett City London Group • Acquired a site at Lam Tei, Tuen • Sold at GBP115 mn in June, subject • Raised AUD500 mn in Mun, New Territories in June to completion residential mortgage-backed • Land replenishme
Slide 7: Profit Increase Despite Global Economic Headwinds
Profit Increase Despite Global Economic Headwinds HK$ mn FY2021 FY2020 % change Revenue 5,944 7,451 - 20.2% Gross profit margin 31.0% 30.3% N/A Profit before tax 1,266 837 + 51.2% Net profit attributable to shareholders 543 366 + 48.5% Total comprehensive income attributable to 3,072 (1,841) N/A sha
Slide 8: Specific Cost Control Measures Taken To Ensure Long Term Sustainability
Specific Cost Control Measures Taken To Ensure Long Term Sustainability Specific actions taken Reviewed all overheads to Streamlined operations reduce administrative costs With the rationalisation program implemented, the Group reduced Cancelled certain incentive Delayed certain capital administrati
Slide 9: Overall GP Margins Remained Healthy Despite Global Macro Events
Overall GP Margins Remained Healthy Despite Global Macro Events FY2021 FY2020 Gross profit Gross profit Gross profit Gross profit Revenue (before Revenue (before (after depreciation) (after depreciation) depreciation) depreciation) HK$ mn HK$ mn Margin HK$ mn Margin HK$ mn HK$ mn Margin HK$ mn Margi
Slide 10: Strong Recovery of Foreign Exchange Rates Added to Our NAV Growth
Strong Recovery of Foreign Exchange Rates Added to Our NAV Growth • The rebound of all currencies against the Hong Kong dollar had a positive effect on our NAV and our adjusted equity • Post-year end trend remained positive for the Group Rates as at 31.3.2021 31.3.2020 Change Average rates for FY202
Slide 11: Objective of Long Term Dividend and NAV/Share Growth Is Intact
Objective of Long Term Dividend and NAV/Share Growth Is Intact • Resilient NAV despite a current challenging business environment • Continuing to deliver a sustainable and attractive dividend is a priority for the Group 10-Year NAV CAGR : 8.1% 10-Year DPS CAGR: 10.5% 13.29 13.09 22.0 22.0 12.41 11.5
Slide 12: Active Management of our Assets
Active Management of our Assets Asset sale Land replenishment Sale of retail components at • Partnered with The Star Entertainment Group (“The Star”) to acquire a site in Pyrmont, Sydney, • Artra(1), Singapore SGD55.2 mn adjacent to The Star Sydney casino, to co-develop • Astoria Crest, Hong Kong HK
Slide 13: Healthy Balance Sheet
Healthy Balance Sheet • Strong liquidity position and reduced net gearing and leverage ratios • Sale of Dorsett City London will further enhance balance sheet HK$ mn As at 31.3.2021 As at 31.3.2020 Total bank loans and notes 27,577 23,460 Investment securities 4,143 3,027 (1) Bank and cash balances
Slide 14: Strong Liquidity and Access to More
Strong Liquidity and Access to More • Available existing liquidity of HK$15.0 bn (cash position and undrawn facilities) far exceeds the capex of HK$1.8 bn • Presales of HK$13.8 bn provides visibility on future cash inflow streams • Unencumbered hotels and completed residential inventory can be used
Slide 15: 2. Review of Operations: Property Development
2. Review of Operations Property Development Concept of Victoria Riverside, Manchester 15
Slide 16: Project Delivery During FY2021
Project Delivery During FY2021 West Side Place, Melbourne (Towers 1 and 2) ARTRA(1),Singapore Luxury living in Melbourne’s CBD Prestigious private property development beside Redhill MRT 1,377 HK$5.6 bn 400 HK$3.1 bn Residential units Total attr. GDV Residential units Total attr. GDV Note: (1) The G
Slide 17: Recent Launch – Aspen at Consort Place, London
Recent Launch – Aspen at Consort Place, London Mixed-use, Luxurious Living in London’s Canary Wharf Live your best life in Canary Wharf with stunning views across the city and beyond, proximity to London’s financial district, state-of-the-art amenities and public spaces in the building, and eateries
Slide 18: New Launch – Hyll on Holland, Singapore
New Launch – Hyll on Holland, Singapore A New Freehold and Luxury Condominium in a Great Neighborhood Close to Orchard Road and Singapore Botanic Garden and bordered by Holland Village, Farrer Road, and Dempsey Cluster, which are known among both locals and expats Apartments Expected attr. SFA 320 1
Slide 19: New Launch – Victoria Riverside, Manchester
New Launch – Victoria Riverside, Manchester An Attractive Residential-led Development with Spacious and High-Quality Public Realm Located to the north east of Manchester city centre, the project is bordered by Dantzic Street to the north and west, Gould Street to the south and the railway arches to
Slide 20: Completion in FY2022 – Hornsey Town Hall, London
Completion in FY2022 – Hornsey Town Hall, London An Artistic Building Rooted in History An iconic art deco building located in the heart of Crouch End, with excellent transportation connectivity to Central London. The project comes with options for many different lifestyles, offering an arts centre,
Slide 21: Completion in FY2022 – MeadowSide Plot 5, Manchester
Completion in FY2022 – MeadowSide Plot 5, Manchester An Attractive Mix of City Living, Urban Amenities and Parkland Peace in the City Centre A landmark project located in the heart of The Noma Quarter, north of Manchester city centre, overlooking Angel Meadow Park, the largest green space in the cit
Slide 22: Upcoming Project in FY2022 – Mount Arcadia, Hong Kong
Upcoming Project in FY2022 – Mount Arcadia, Hong Kong A World-Class Project Surrounded by Lush Greenery Located in a quiet area with development potential in Shatin, Hong Kong Apartments Expected attr. SFA 62 transportation Houses hubs 84,000 sq.ft. 4 Expected attr. GDV Year of completion HK$1.7 bn
Slide 23: Upcoming Project in FY2022 – Bourke Street, Melbourne
Upcoming Project in FY2022 – Bourke Street, Melbourne An Exciting Mixed-Use Development Next to Our Previous Projects 640 Bourke Street, an exciting mixed use development providing for a variety of uses including retail, café, commercial office, public gallery spaces and childcare facilities Apartme
Slide 24: Upcoming Project in FY2022 – Towers 5 & 6 at Queen's Wharf Residences
Upcoming Project in FY2022 – Towers 5 & 6 at Queen’s Wharf Residences, Brisbane A World-Class Integrated Resort in Queensland, Australia With great support from the Brisbane government, the Queen’s Wharf Residences is one of the major projects across Australia. The project occupies 10% of CBD footpr
Slide 25: 2. Review of Operations: Hotel Operations & Management
2. Review of Operations Hotel Operations & Management The Ritz-Carlton, Perth 25
Slide 26: FEC Took Prompt Actions to Stay Ahead
FEC Took Prompt Actions to Stay Ahead • Reducing overheads • Exploring • Targeting new • Leveraging • Benefitting from by trimming down monetisation demand from government global diversification workforce and opportunities to domestic long-stay incentives and as operating cutting fixed costs dispose
Slide 27: Decisive Actions and Clear Strategy Resulted in Outperformance
Decisive Actions and Clear Strategy Resulted in Outperformance • Positive EBITDA achieved for FY2021 • Hong Kong remains the main contributor to the Group’s hotel operations • The occupancy rate (“OCC”) of Hong Kong hotel portfolio has been higher than the same period of last year since October 2020
Slide 28: New Hotel Additions in 2H FY2022
New Hotel Additions in 2H FY2022 Dorsett Gold Coast Ritz-Carlton Melbourne Dorsett Shepherds Bush II • Adjacent to the Gold Coast • Occupies the top 18 floors of • Adjacent to Dorsett Convention and Exhibition West Side Place (Tower 1), Shepherds Bush Centre and Pacific Fair Melbourne • Overlooking
Slide 29: Kai Tak Development – Project Progressing Well
Kai Tak Development – Project Progressing Well The HK Government’s most significant infrastructure investment in recent decades • Total area: over 320 hectares • Kai Tak Outline Zoning Plan: A mix of community, housing, business, entertainment, tourism and infrastructural uses • Town Planning Board
Slide 30: 2. Review of Operations: Car Park Operations
2. Review of Operations Car Park Operations Care Park Control Room, Melbourne 30
Slide 31: Positive EBITDA Despite Lockdown Measures and Travel Restrictions
Positive EBITDA Despite Lockdown Measures and Travel Restrictions • Significant opportunity to grow our platform through acquisitions 31.3.2021 31.3.2020 • Car park operations generated positive EBITDA despite lockdown measures in the regions where the Group operates No. of No. of No. of No. of Car
Slide 32: Value-Added Technology Reduces Costs and Enhances Value
Value-Added Technology Reduces Costs and Enhances Value Leading Technology Platform • Car park operator with in-house technology capabilities • Control centre in Melbourne oversees all operated car parks • Able to efficiently roll out technology to new and existing sites End-to-end Car Park Service
Slide 33: 2. Review of Operations: Gaming Operations
2. Review of Operations Gaming Operations Concept of Queen’s Wharf Brisbane 33 33
Slide 34: EBITDA Remained Positive Despite Temporary Closure
EBITDA Remained Positive Despite Temporary Closure 3 full-service casinos in the Czech Republic • Despite temporary closure, gaming operations’ EBITDA remained positive with the help of government aid • Swift actions were taken to reduce staff costs and operating expenses • Keeping costs low • Initi
Slide 35: QWB: Equity Investment Phase Almost Over; Harvesting Period Coming Soon
QWB: Equity Investment Phase Almost Over; Harvesting Period Coming Soon • World-class integrated resort destination • FEC’s stake: 25% • Hotel/Retail/F&B/Casino • Executed AUD1.6 bn financings for Queen’s Wharf Brisbane • Attracted the retail giant, DFS, to the luxury shopping precinct, bringing mor
Slide 36: Other Compelling Projects: Strategic Alliance with The Star
Other Compelling Projects: Strategic Alliance with The Star The Star Gold Coast Precinct The Star Sydney • Ongoing planning for landmark residential and hotel towers adjacent to The Star Sydney, to be operated by The Ritz-Carlton • FEC’s stake: 33.3% • Hotel/Residential Pyrmont Precinct, Sydney • Fi
Slide 37: 2. Review of Operations: Other Businesses
2. Review of Operations Other Businesses Concept of MeadowSide, Manchester 37
Slide 38: BC Group – Moving Into a New Growth Phase
BC Group – Moving Into a New Growth Phase Business overview Loans and advances CAGR : 157.9% • A fast-growing platform offering mortgage financing in Australia and the UK 1,166 976 • Expanded into the UK market and received extremely positive initial response 626 • Exploring a number of mid-sized ac
Slide 39: 3. Prospects
3. Prospects The Star Residences, Gold Coast 39
Slide 40: Short to Medium-Term Harvesting
Short to Medium-Term Harvesting Short and Medium Term Outlook • Planning new launches and monetisation in FY2022 - Mount Arcadia in Hong Kong Property - Bourke Street in Melbourne Development - Monetisation of Kai Tak office - Sale of “Affordable Housing” in the UK • Remain on the look-out for attra
Slide 41: Seeding New Growth
Seeding New Growth Synergistic businesses supports core businesses’ Significant value creation opportunities in these growth businesses Highly Synergistic Business FEC’s stake: 25% FEC’s stake: 25% FEC’s stake: c.51% FEC’s stake: 100% FEC’s stake: 100% Integrated resort targeting International prope
Slide 42: Enhance ESG Efforts to Create Long-Term Value
Enhance ESG Efforts to Create Long-Term Value Strengthen Governance to Improve ESG Performance Formulated ESG Steering Committee – Two meetings per year Obtained Board Approval of Terms of – In the process of setting a 10-year sustainable Reference plan Create strategic ESG Direction for the Group E
Slide 43: Focus on IR and ESG Continued To Be Recognized
Focus on IR and ESG Continued To Be Recognized 2020 6th Investor Relations Awards • Best IR Company 10th Asian Excellence Award 2020 • Best IR by Chairman / CEO – Tan Sri Dato’ David Chiu • Asia’s Best CEO – Tan Sri Dato’ David Chiu • Best IR by CFO – Boswell Cheung • Asia’s Best CFO – Boswell Cheun
Slide 44: Thank You
Thank You Questions & Answers For more information, please contact: Investor Relations Department: ir@fecil.com.hk Or visit the Company’s website: www.fecil.com.hk FEC Official WeChat 44
Slide 45: 4. Appendices
4. Appendices The Towers at Elizabeth Quay, Perth 45
Slide 46: Strong Pipeline for Sustainable Growth
Strong Pipeline for Sustainable Growth Cumulative Cumulative Projects under presale Location presales Expected attr. SFA(1) Expected attr. GDV (2) Expected presale Notes: As at 31.03.2021 (HK$'M) (sq.ft.) (HK$'M) Completion(2) as % of GDV (1) The figures represent approximate saleable residential FY
Slide 47: Hotel Operating Performance
Hotel Operating Performance Dorsett Group FY2021 FY2020 YoY change Hong Kong Occupancy rate 75.5% 70.8% +4.7ppts Average room rate (HK$) 533 578 -7.8% RevPAR (HK$) 402 409 -1.7% Malaysia Occupancy rate 37.4% 65.6% -28.2ppts Average room rate (MYR) 160 197 -18.8% RevPAR (MYR) 60 129 -53.5% Mainland C
Slide 48: Significant Hidden Value in FEC's Hotel Portfolio
Significant Hidden Value in FEC’s Hotel Portfolio Capital Value @ Revaluation City / Country Description Rooms 31.3.2021 Surplus (HK$ mn) (HK$ mn) Hotels in operation Hong Kong 1 Dorsett Wanchai Hong Kong Amid Wanchai and Causeway Bay 454 3,980 3,742 2 Cosmo Hotel Hong Kong In Hong Kong's prime busi
Slide 49: Details of Major Investment Properties
Details of Major Investment Properties Current Investment Properties Total GFA Pipeline Investment Properties Total GFA (sq. ft.) (sq. ft.) FEC Building, Central, Hong Kong 3,000 Queen’s Wharf Brisbane(1), Brisbane 346,900 FEC Building, Nathan Road, Hong Kong 38,700 Kai Tak, Hong Kong 195,700 Far Ea
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