Far East Consortium International Limited · HKEX:35
Far East Consortium International — FY2023 Earnings Presentation
50 slides from Far East Consortium International's earnings presentation, June 2023
Slide 1: FY2023 Annual Results
FY2023 Annual Results June 2023
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. FY2023 Annual Results Summary 2. Review of Operations 3. Prospects 4. Appendices 3
Slide 4: 1. FY2023 Annual Results Summary
1. FY2023 Annual Results Summary Ritz-Carlton Melbourne 4
Slide 5: Key Theme of FY2023
Key Theme of FY2023 Top Line Growth Across All Business Segments Amidst Challenging Macro Environment • Adjusted revenue reached HK$6.9 bn and adjusted cash profit was HK$576 mn • Property development: Adjusted revenue for property development was HK$4.1 bn. Cumulative presales and unbooked contract
Slide 6: Key Theme of FY2023 (cont'd)
Key Theme of FY2023 (cont’d) BC Invest Mortgage Business Continues to Grow Strongly • Issued another three RMBS totaling AUD1.2 bn in FY2023, followed by a seventh RMBS raising AUD502 mn in April 2023 • Shifted towards a largely resident borrower RMBS program mix • Total AUM reached AUD5.3 bn as at
Slide 7: Top Line Growth but Profitability Affected by Several Factors
Top Line Growth but Profitability Affected by Several Factors • Booking of lower margin property development projects and some construction delays during COVID-19 (West Side Place Stage 2 delayed to FY2024) • Interest rate rises and one-off events such as remittance tax and hotel pre-opening expense
Slide 8: Strong Property Development Pipeline in the Coming Years
Strong Property Development Pipeline in the Coming Years • Cumulative attributable presales and unbooked contracted sales at HK$18.7 bn Expected Completion Year FY2024 FY2025 FY2026 • Inventory Sales • Kai Tak Development - Office • Kai Tak Residential(3) HK/ - Mount Arcadia - Manor Parc PRC - Royal
Slide 9: Margins Largely Intact Although Dragged Down by Lower-margin Projects
Margins Largely Intact Although Dragged Down by Recognition of Lower-margin Property Development Projects in FY2023 • Ramp-up period for HK hotels following border reopening also affected hotel margin FY2023 FY2022 Gross profit Gross profit Gross profit Gross profit Revenue Revenue (after depreciati
Slide 10: Impact of Foreign Exchange Rates
Impact of Foreign Exchange Rates • Movement in foreign currencies impacted balance sheet position • Assuming exchange rates remained constant, net asset value(1), would have been HK$1,701 million higher as at 31 March 2023 Average rates Rates as at 31.3.2023 31.3.2022 % change FY2023 FY2022 % change
Slide 11: Unlocking Value for Shareholders
Unlocking Value for Shareholders 10-Year NAV CAGR : 4.3% 12.08 11.90 12.56 Key Initiatives to Drive Value Creation 11.67 11.28 10.54 9.81 8.90 Spin-off and separate listing of Continental 8.29 8.20 European Gaming and Hotel Businesses 7.68 Acquired in 2018 for US$42 mn 10% pre-IPO stake valuin
Slide 12: Managing our Balance Sheet
Managing our Balance Sheet • Disposals of non-core assets and presales moving to completion will strengthen liquidity and balance sheet position • Making efforts to reduce gearing as interest rates remain elevated HK$ mn As at 31.3.2023 As at 31.3.2022 (1) Due within 1 year 21,389 11,450 Due 1-2 yea
Slide 13: Initiatives to Reduce Debt Level and Finance Costs
Initiatives to Reduce Debt Level and Finance Costs • Monetise assets and reduce debt by HK$6-7 bn Focusing on Monetising Existing Completed Inventory West Side Place (Towers 3 and 4) commenced settlement process in April 2023. As at 26 June 2023, reduced approximately AUD368 mn debt (approximately
Slide 14: Short Term Debts Analysis and Liquidity Management
Short Term Debts Analysis and Liquidity Management • Aim to reduce debt level in coming months amidst rising interest rate • Completion of major projects and disposal of non-core assets will reduce debt level Bank loans and notes due within 1 year as Status HK$ mn at 31.3.2023 4.5% 2023 Notes Repaid
Slide 15: Good Access to Liquidity
Good Access to Liquidity • Available existing liquidity of approximately HK$14.0 bn (cash position and undrawn facilities) far exceeds the capex of HK$1.7 bn • Presales and unbooked contracted sales of approximately HK$18.7 bn provides visibility on future cash inflow streams • Unencumbered hotels a
Slide 16: 2. Review of Operations: Property Development
2. Review of Operations Property Development New Cross Central, Manchester 16
Slide 17: Presales Offers Good Cash Flow Visibility
Presales Offers Good Cash Flow Visibility • HK$18.7 bn of cumulative presales and unbooked contracted sales over HK$61 bn of saleable residential inventory As at 31.03.2023 Location Cumulative presales Expected attr. SFA(1) Expected attr. GDV(2) Expected Cumulative presale Notes: Projects under pres
Slide 18: Recent Completion – The Star Residences (Tower 1), Gold Coast
Recent Completion – The Star Residences (Tower 1), Gold Coast Live in the Heart of Gold Coast’s World-Class Integrated Resort Located at The Star Gold Coast on Broadbeach Island, Tower 1 is one of 5 total towers in this mixed-use development. The site is adjacent to Pacific Fair Shopping Centre and
Slide 19: Recent Completion – MeadowSide, Manchester
Recent Completion – MeadowSide (Plots 2, 3 and 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’s city centre. The projects overlook Angel Meadow Park, the largest g
Slide 20: Recent Completion – Hornsey Town Hall, London
Recent Completion – 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, fl
Slide 21: Recent Completion – New Cross Central, Manchester
Recent Completion – New Cross Central, Manchester Stylish Design Inspired by Manchester’s History and Character Located in the centre of a lively, up-and-coming neighbourhood in Manchester, this development is surrounded by indie shops and F&B spaces. The homes feature red brick exteriors with inter
Slide 22: Upcoming Completion in FY2025 – Queen's Wharf Residences (Tower 4)
Upcoming Completion in FY2025 – Queen’s Wharf Residences (Tower 4) A Landmark that Further Reinforces Brisbane’s status as a Truly Global City It is located in the heart of Brisbane's CBD and is part of the wider Queen's Wharf precinct, which is set to become a major entertainment and leisure destin
Slide 23: Upcoming Completion in FY2026 – Queen's Wharf Residences (Tower 5)
Upcoming Completion in FY2026 – Queen’s Wharf Residences (Tower 5) Unique Residential Living with Exceptional Private Amenity Tallest tower within the Queen’s Wharf Brisbane development and is across the street from the Tower 4. Mixing luxury retail, dining, entertainment and accommodation with prem
Slide 24: Upcoming Launch in FY2024 – Kai Tak Residential
Upcoming Launch in FY2024 – Kai Tak Residential Significant New Development Along the Waterfront The development is at the heart of the Hong Kong government’s redevelopment plans, providing residents with access to upgraded infrastructure. Its location offers a tranquil sea view for rest and relaxat
Slide 25: Review of Operations: Hotel Operations & Management
3. Review of Operations Hotel Operations & Management Dorsett Melbourne 25
Slide 26: Strong Performance as Global Economy Re-opens
Strong Performance as Global Economy Re-opens • Hong Kong affected by removal of quarantine stay requirement • Lifting of travel restrictions increased the demand for hotel rooms in latter part of FY2023 • Continue to refine the operating business model to best serve our customers Dorsett Group FY20
Slide 27: Hotel Opened in FY2023 – Dao by Dorsett West London
Hotel Opened in FY2023 – Dao by Dorsett West London New Build Aparthotels with Slick and Chic City Interiors • As the first Dorsett property to adopt an aparthotel model, Dao by Dorsett West London represents a fresh take on the Group’s hotels • Comprises one or two-bedroom, fully-serviced apartment
Slide 28: Hotel Opened in FY2023 – Ritz-Carlton Melbourne
Hotel Opened in FY2023 – Ritz-Carlton Melbourne An Expression of Timeless Luxury • Occupies the top 18 floors of West Side Place (Tower 1), Melbourne • The tallest hotel in Australia and the Southern Hemisphere • Offering stunning and expansive views over the Docklands bay and cityscape • Surrounded
Slide 29: Hotel Rebranded in FY2023 – Dao by Dorsett AMTD Singapore
Hotel Rebranded in FY2023 – Dao by Dorsett AMTD Singapore First Dao by Dorsett Hotel in Asia • Rebranding Oakwood Premier AMTD Singapore to Dao by Dorsett AMTD Singapore in July 2022 • Located in the heart of Singapore’s Central Business District • The first “Dao by Dorsett” hotel in Asia offering a
Slide 30: Pipeline Hotels to Add to Growth Momentum
Pipeline Hotels to Add to Growth Momentum As at 31.3.2023 As at 31.3.2025 • 9 new hotels under construction in Australia, the UK and Hong 8,480 10,781 Kong with 2,301 rooms in the next 3 years • Dao by Dorsett West London opened on 1 June 2022 and Ritz- Carlton Melbourne commenced operations in Marc
Slide 31: New Hotel Addition in April 2023 – Dorsett Melbourne
New Hotel Addition in April 2023 – Dorsett Melbourne Hotel of choice for business and leisure travelers • Located within the West Side Place development precinct of the Melbourne CBD and occupying levels 3 to 8 of West Side Place (Tower 3) • Surrounded by over 3,000 sqm of retail space and offering
Slide 32: Upcoming Hotel Completion – Dao by Dorsett Hornsey
Upcoming Hotel Completion – Dao by Dorsett Hornsey A unique combination of contemporary and period furnishings • Located at the heart of Crouch End, adjacent to shops and restaurants on a busy high street, while having good transport link to central London • Part of the restored Grade II* listed Tow
Slide 33: 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 34: Review of Operations: Car Park Operations
4. Review of Operations Car Park Operations Care Park, Victoria 34
Slide 35: Loosened Restrictions Led to a Recovery
Loosened Restrictions Led to a Recovery • Car park operations gradually return to normalcy and made a 31.3.2023 31.3.2022 strong recovery, with revenue increasing 13.6% year-on-year to No. of No. of No. of No. of approximately HK$754 mn Car Park Bays Car Park Bays • Continue to crystalising assets b
Slide 36: Review of Operations: Gaming Operations
5. Review of Operations Gaming Operations PALASINO Furth im Wald, Czech Republic 36
Slide 37: Queen's Wharf Brisbane Progressing to Commencement of Operation
Queen’s Wharf Brisbane Progressing to Commencement of Operation Casino Licence Terms • 99 years with a 25-year casino exclusivity period within 60 kilometers from the Brisbane CBD • 2,500 slots & unlimited gaming tables (including electronic derivations) A World-Class Integrated Resort Details • Ope
Slide 38: TWHE - Resilient Recovery and Results Bounce Back
TWHE - resilient recovery and results bounces back strongly from COVID-19 challenges Attendance and Revenue Experience Impressive Rebound • Revenues reached HK$296 mn(1), a 28.0% increase as compared to FY2022 • Demonstrated remarkable resilience with loyal customer bases • Obtained online gaming li
Slide 39: Review of Operations: Other Businesses
6. Review of Operations Other Businesses Hornsey Townhall, London 39
Slide 40: BC Invest – Another Year of Strong Growth
BC Invest – Another Year of Strong Growth Overview Catalysts for FY2023 • Organic growth remains very strong, despite the interest rate • Asset light platform providing residential mortgages in environment Australia and the UK • Normalisation of lending market in Australia should level the • AUM inc
Slide 41: Prospects
7. Prospects The Star Residences, Gold Coast 41
Slide 42: Outlook: Unlocking value and reducing debt level
Outlook Balance Sheet Unlocking value and reducing debt level Management • Priority is to reduce debt given high interest rate • Targeting to reduce debt level by HK$6-7 bn through various initiatives - Settlement of pre-sales as projects complete - Spin-off and separate listing of TWHE - Sale of no
Slide 43: Outlook: Hotels, Car Parks, Gaming, BC Invest
Outlook Hotel Operations Strong rebound in hotel sector and Management • Solid performance all around with Hong Kong normalising • Newly opened hotel properties will contribute in the upcoming year • Will continue monitoring market environment and considering adjustments to business model as needed
Slide 44: Enhance ESG Efforts to Create Long-Term Value
Enhance ESG Efforts to Create Long-Term Value Strengthen Governance to Improve ESG Performance Formed key internal committees within the ESG Working Group to support the ESG Steering Committee Create strategic ESG Direction for the Group Developed KPI’s with Executing the sustainability Refining Gro
Slide 45: Key Sustainability Initiatives
Key sustainability initiatives Environmental Social Corporate Governance Waste reduction Employee well-being Formulate sustainability strategy • Reduce distribution of single-use plastic • Adopt flexible working hours and hybrid • Set up ESG Steering committee • Recycle single-use plastic working mo
Slide 46: Reputable Awards for IR and ESG Work
Reputable Awards for IR and ESG Work FY2023 FinanceAsia’s Best Companies Poll 2022 2022 International ARC Awards • Best CEO in Hong Kong • Property Development: Various & Multi Use – Traditional Annual • Best small-cap Company in Hong Kong Report: Bronze HKIRA 8th Investor Relations Awards 2022 IR M
Slide 47: 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 47
Slide 48: Appendices
8. Appendices Mount Arcadia, Hong Kong 48
Slide 49: Significant Hidden Value in FEC's Hotel Portfolio
Significant Hidden Value in FEC’s Hotel Portfolio Capital Value @ Revaluation City / Country Description Rooms 31.03.2023 Surplus (HK$ mn) (HK$ mn) Hotels in operation Hong Kong Notes: 1 Dorsett Wanchai Hong Kong Amid Wanchai and Causeway Bay 454 4,000 3,779 2 Cosmo Hotel Hong Kong In Hong Kong's pr
Slide 50: Details of Major Investment Properties
Details of Major Investment Properties Total GFA Total GFA Current Investment Properties (sq. ft.) Pipeline Investment Properties (sq. ft.) FEC Building, Central, Hong Kong 3,000 Queen's Wharf Brisbane (1), Brisbane 213,100 FEC Building, Nathan Road, Hong Kong 38,700 Kai Tak, Hong Kong 190,100 Far E
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