Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — FY2023 Earnings Presentation
36 slides from Ctf Services's earnings presentation, Sep 29, 2023
Slide 1: FY2023 Annual Results Analyst Presentation
FY2023 Annual Results Analyst Presentation 29 September 2023
Slide 2: Portfolio optimization in times of challenges bearing fruits
Portfolio optimization in times of challenges bearing fruits FY2018 FY2019 – FY2022 FY2023 Infrastructure Core Business Roads Construction Insurance Logistics Facilities Services Strategic Portfolio Management Portfolio Optimization Portfolio stabilized Disposal of assets in timely manner with I
Slide 3: Resilient business portfolio registering noticeable recovery in FY2023-2H
Resilient business portfolio registering noticeable recovery in FY2023-2H Roads Insurance AOP APE • FY2023 vs FY2022: -10% • FY2023-2H vs FY2022-2H: +162% Strong pent-up demand • FY2023-2H vs FY2022-2H: +14% • Almost doubled vs pre-COVID-19 level released from Mainland Overall like-for-like traffic
Slide 4: Operating businesses remain solid
Operating businesses remain solid Operating businesses AOP1 Overall FY2023 vs ↓ 10% ↓ 7% ↑ 12% ↑ 27% ↑ 85% ↑ 11% FY2022 4,204 3,803 2,806 HK$’M 1,8051,710 1,533 1,205 1,075 870 835 776 752 524 593 0 (62) (393) (410) 2 Roads Construction (Hip Hing) Insurance 3 Logistics 4 Facilities Management FY2019
Slide 5: Positive secular industry growth supports business outlook
Positive secular industry growth supports business outlook Roads Construction Insurance Logistics Facilities Management • Growth in Mainland • HK Government policy to • Rising awareness of • Economic development & GHK economy, car ownership & increase land & housing healthcare protection & governmen
Slide 6: Optimization of capital structure
Optimization of capital structure - Strengthened balance sheet + healthy financial position Savings from redemption of senior notes & perpetual securities at discount Proactive capital management & to par strong balance sheet to meet Further redeemed US$92.3M senior notes (at 13.5% discount to par
Slide 7: Continuous return to shareholders
Continuous return to shareholders 20 consecutive years of dividend & counting Continue to crystalize & deliver value for shareholders Uphold our sustainable & progressive dividend policy Sustainable & progressive dividend policy on absolute DPS DPS (HK$) 0.61 0.61 0.58 0.58 0.59 FY2019 FY2020
Slide 8: Financial highlights
Financial highlights • Decline in AOP of the Roads segment due to RMB 2022 2023 Fav./(Unfav.) depreciation, drop in traffic flow & toll revenue in FY2023-1H owing to the containment measures against For the year ended 30 Jun (HK$’M) (HK$’M) change % COVID-19 • Fall in contribution from Construction
Slide 9: Performance by segment
Performance by segment 2022 2023 Fav./(Unfav.) For the year ended 30 Jun (HK$’M) (HK$’M) change % • RMB depreciation, COVID-19 containment measures in the Mainland in FY2023-1H & cut in toll fee for trucks by 10% in Q4 22 Roads 1,709.9 1,532.8 (10) • Strong recovery in FY2023-2H following the relaxa
Slide 10: an Bll NWS
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Slide 11: Rapid recovery in FY2023-2H and exceeded pre-COVID-19 level
Roads - 17 toll roads in the Mainland (c.1,000km) Segment AOP Rapid recovery in FY2023-2H and exceeded pre-COVID-19 level YoY HK$M ↓ 10% ► AOP drop mainly attributed to 1) RMB depreciation; 2) COVID-19 containment measures in the Mainland in FY2023-1H; & 3) cut in toll fee for trucks by 10% by the M
Slide 12: Ample opportunities for long-term growth in HK construction sector
Construction - Hip Hing (100%) & Investment in Wai Kee (11.5%) Segment AOP Ample opportunities for long-term growth in HK construction Wai Kee sector HK$M YoY Hip Hing ↓ 18% ► Hip Hing Group’s AOP declined 7% yoy to HK$776.4M due to lower gross margin recognized 77 835 776 ► FY2023 New contract awar
Slide 13: Border reopening as a booster for the industry
Insurance – FTLife Insurance Segment AOP Border reopening as a booster for the industry YoY ► Overall APE HK$M ↑12% • FY2023-2H: +162% yoy to HK$1,841.0M, almost doubled that of pre-COVID-19 level (FY2019-2H) • Full year: +47% yoy to HK$2,567.9M, a reverse from -31% yoy in FY2023-1H 1,075 1,205 ► Ra
Slide 14: FY2023 Key figures
Insurance – FTLife Insurance FY2023 Key figures HK$899.5M HK$2,567.9M (+71% yoy) (+47% yoy) VONB APE 35% Market Ranking1: 2,100+ VONB Margin HK$21,992.4M 9th Tied Agents (+65% yoy) 320+ Gross Written Brokers Premium 7 HK$19.3Bn3 325%3 Corporate Agency (+9% yoy) Solvency Ratio Embedded (min. requirem
Slide 15: Resilient business performance and fresh contributions from logistics properties spurred growth
Logistics Segment AOP Resilient business performance and fresh contributions from logistics properties spurred growth HK$M YoY ↑27% ► Logistics Asset & Management (“LA&M”) - Total gross leasable c.12.4M sqft • ATL - Total gross leasable area c.5.9M sqft 752 593 Contributed over 70% of Logistics se
Slide 16: Outlook
Logistics ► CUIRC – AOP grew noticeably by 28% yoy • Throughput grew by 17% yoy to 5.5M TEUs in FY2023 • Continued to benefit from the strong demand for multimodal transportation service & increase in capacity from the new Guangzhou terminal • Besides doubling the handling capacity of Zhengzhou term
Slide 17: Turnaround of HKCEC and Free Duty, plus continuing ramping up in GHK
Facilities Management Segment AOL Turnaround of HKCEC and Free Duty, plus continuing ramping up in GHK, fostered improvement in HK$M YoY performance ↑ 85% ► HKCEC – return to profitability in FY2023 (62) • Strong rebound in FY2023-2H upon border reopening • Scale of events gradually recovering, enqu
Slide 18: Outlook
Facilities Management ► GHK Hospital – EBITDA increased 759% & further improvement in AOL • EBITDA margin continued to improve • Inpatients, outpatients & day cases +19%, +7% & +3% yoy, respectively • Regularly utilized beds increased to 276 (30 Jun 22: 264) • Average occupancy rate in FY2023: 67% (
Slide 19: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG)
Slide 20: Awards and recognitions
Awards and recognitions E S G R AT I N G P E R F O R M A N C E * AW A R D S & R E C OGN IT ION * “AA+” rating Scored 43, 76 percentile Hong Kong Sustainability Sustainable Business Award Best overall score in the among industry peers Award - Certificate of Sustainable Leadership conglomerate categor
Slide 21: Act with Integrity
Act with Integrity Our Sustainability Governance Our commitment Monitor Manage Collaborate ESG Management Task Force Business units across the Sustainability Committee, as support the Sustainability Aspire to cultivate an mandated by the Board, Group foster synergies and 1 Committee to formulate and
Slide 22: Advance with Agility
Advance with Agility Turning Sustainability Risks into Opportunities INNOVATION AND DIGITALISATION ACCELERATING TO NET ZERO NWS has a clear roadmap prioritizing tasks and goals, ensuring AI Life Sense Alert System by HKCEC transparent progress toward a net-zero future. We aim for net-zero • Identifi
Slide 23: Evolve Sustainably: Highlights of Green Operation in FY2023
Evolve Sustainably Highlights of Green Operation in FY2023 Save Shorten Reduce Achieve 200,000 kWh/year ~40% construction time 5,040 Hrs of congestion (compared to 2021) 6 Grade 1 China Green Warehousing Certificate after replaced twelve sets by integrating BIM, 3D 5040 Hangzhou Ring Road The assess
Slide 24: Evolve Sustainably: Investing for the Future
Evolve Sustainably Investing for the Future We acknowledge the significant role that our investment strategies play in mitigating climate-related risks and facilitating the transition to a low-carbon economy. NWS Group introduced the ESG Due Diligence Guideline for Investment in FY2023 Greening the
Slide 25: Grow As One
Grow As One Recognizing the needs for the Future Workforce Our Aspiration 5-day work week Connect in Construction in the Digital Era 1 Foster an inclusive, diverse, and supportive • Implementing a five-day work week complemented • FTLife and NWS Corporate Office introduced the organizational culture
Slide 26: Create Shared Value
Create Shared Value Our Approach Enhancing Fostering the Wellbeing of Our Workforce an Inclusive Community 1 Enhance the company's NWS's fundamental community investment strategy is competitiveness while founded upon three essential pillars: Empowering the Next simultaneously fostering Generations,
Slide 27: Appendices
a #32 NWS Appendices a #3 NWS
Slide 28: Corporate structure
Corporate structure Chow Tai Fook (Holding) Limited 17.HK 1929.HK Market Cap: HK$37Bn Market Cap: HK$116Bn Appendix 825.HK Market Cap: HK$1.1Bn 659.HK Market Cap: HK$35Bn 28 Note: Market cap as at 28 Sep 2023
Slide 29: AOP by segment and geography
AOP by segment and geography Others 17% Mainland China 41% FY2022 Hong Kong 42% Appendix 37% 29% 18% 18% -1% -1% Roads Construction Insurance Logistics Facilities Strategic Management Investments Hong Kong FY2023 Mainland China 59% 41% 29
Slide 30: Roads: Portfolio of toll roads in the Mainland
ROADS Portfolio of 17 toll roads in the Mainland c.1,000km Guangdong Zhejiang Hubei Tianjin Shanxi Hunan Guangxi # of Roads 7 1 2 1 3 2 1 Appendix Length 313.9 km 103.4 km 137.34 km 60.67 km 76.52 km 89.08 km 198 km Concession Expiry 2023–2036 2029 2040–2050 2040 2023–2025 2039–2044 2045 FY23 Cumula
Slide 31: Construction: Prime construction company in HK
Prime construction company in HK CONSTRUCTION Type of Projects1 Contracts On Hand (HK$’Bn) 9% 62 57 Commercial & 70 Areas of Expertise 65 60 Residential 2 55 68% 50 45 40 35 Building 30 25 Appendix 20 15 Government3 & 10 5 0 Institution 32% 30 Jun 22 30 Jun 23 Foundation Construction Backlog (HK$’Bn
Slide 32: Insurance investment portfolio
Investment portfolio (as of 30 Jun 2023) INSURANCE Investment Portfolio AUM* (HK$'M) Asset Types 68,264 Bonds 58,713 55,670 (Including Bond Funds) 73% Listed Equities Other (Including Equity Assets & Funds) Appendix Cash 12% 30 Jun 2021 30 Jun 2022 30 Jun 2023 10% Alternatives * Exclude Investment-L
Slide 33: Investments in Logistics in Greater China
Investments in Logistics in Greater China LOGISTICS Investments in: • ANE (Cayman) Inc. • Worldex (全球捷運) 7 logistics properties in CUIRC • JD-Link (佳利達國際物流) Chengdu, Wuhan & Suzhou • Tangshi (湯氏供應鏈) • JV with China State Railway Group, Urumqi Jilin • Total gross leasable area: 6.5M sqft Inner PSA, C
Slide 34: Optimization of business portfolio
FY2018-2H to FY2023 Optimization of business portfolio Investments in Roads, Insurance & Logistics segments >HK$35Bn Key Acquisitions • Laogu Expy • Guiwu Expy (40%) • Suiyuenan Expy • Sui-yue Expy (40%) • Changliu Expy • Sui-yue Expy (60%) • A portfolio of six • FTLife Insurance Co logistics proper
Slide 35: Thank you
Ae Al el 3 NWS
Slide 36: Disclaimer
Disclaimer NWS Holdings Limited (“NWS”) makes no representation or warranty of any kind, express, implied or statutory regarding the accuracy or completeness of the information contained. It is not the intention to provide, and you may not rely on this presentation as providing, all material informa