Far East Consortium International Limited · HKEX:35
Far East Consortium International — H1 FY2018 Earnings Presentation
46 slides from Far East Consortium International's earnings presentation, November 2017
Slide 1: 2017/18 Interim Results
2017/18 Interim Results 1 November 2017
Slide 2: Disclaimer
Disclaimer This document has been prepared by Far East Consortium International Limited (the “Company”) solely for information purposes. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclosed in this document. This document does not constitute
Slide 3: Table of Contents
Table of Contents 1. FY2018 Interim Results Summary 2. Review of Operations 3. Prospects 3
Slide 4: FY2018 Interim Results Summary
1. FY2018 Interim Results Summary Gold Release, West Side Place, Melbourne, Australia 4
Slide 5: FY2018 Interim Results Highlights
FY2018 Interim Results Highlights 1HFY2018 1HFY2017 YoY change Revenue (HK$ M) 2,776 2,953 -6.0% Gross profit (HK$ M) 1,405 1,109 +26.8% Net profit attributable to shareholders (HK$ M) 1,033 681 +51.6% EPS (HK cents) - Basic & Fully diluted 46.0 32.0 +43.8% Dividend per share (HK cents) - Interim 4.
Slide 6: Business Highlights – Property Development
Business Highlights – Property Development • The FIFTH, Melbourne (402 units) - Partial (1) Project completed • Royal Crest II, Shanghai (180 apartments, 42 townhouses) • Dorsett Bukit Bintang, Kuala Lumpur (252 units) • Perth City Link, Perth (Lots 3B, 6 and 7) (Preferred Proponent) New Projects •
Slide 7: Business Highlights – Recurring Income Business
Business Highlights – Recurring Income Business • Overall occupancy rate: 81.8%, +5.6 ppts YoY • Solid RevPAR growth despite new hotel opening: HK$494, +8.3% YoY (1HFY2017: HK$456) Hotel: Strong recovery • New opening: Dorsett City in London (267 rooms) partially opened in August 2017 • Silka West K
Slide 8: Post Balance Sheet Events
Post Balance Sheet Events • Car Parks in Budapest, Hungary ₋ Acquired in October 2017 for approx. EUR21 mn ₋ A portfolio of 6 car parks in Budapest with 1,392 spaces Acquisition ₋ Located in the prestigious central of Budapest with strong demand for car parking spaces ₋ The Group’s first car park ac
Slide 9: Well Balanced Diversified Portfolio
Well Balanced Diversified Portfolio Business diversification allows FEC to take advantage of property cycles in different countries Total Assets by Geography(1) Total Assets by Business Segment(1) Car park Singapore UK operations & 9% 7% facilities Mainland China management 13% Australia and New Pro
Slide 10: GP Margin Expanded Across All Three Core Businesses
GP Margin Expanded Across All Three Core Businesses 1HFY2018 1HFY2017 Gross profit Gross profit Gross profit Gross profit Revenue (after (before Revenue (after (before depreciation) depreciation) depreciation) depreciation) Margin Margin Margin Margin HK$ M HK$ M % HK$ M % HK$ M HK$ M % HK$ M % Prop
Slide 11: Foreign Exchange Movement Analysis
Foreign Exchange Movement Analysis Average 1H 1H Rates as at 30-Sep-17 31-Mar-17 Change Change rates for FY2018 FY2017 HKD/AUD 6.11 5.93 3.0% HKD/AUD 6.02 5.92 1.7% HKD/RMB 1.18 1.13 4.4% HKD/RMB 1.16 1.18 -1.7% HKD/MYR 1.85 1.75 5.7% HKD/MYR 1.80 1.92 -6.3% HKD/GBP 10.43 9.67 7.9% HKD/GBP 10.05 10.
Slide 12: Consistent NAV Creation and Dividend Growth
Consistent NAV Creation and Dividend Growth As at 30.9.2017 As at 31.3.2017 Equity attributable to shareholders (HK$M) 11,887 10,792 Add: Hotel revaluation surplus (HK$M) 13,011 13,354 Total NAV attributable to shareholders (HK$M) 24,898 24,146 No. of shares issued (million) 2,249 2,238 Net asset va
Slide 13: Strong Credit Profile
Strong Credit Profile Liquidity Position and Total Assets(1) Net Gearing(2) HK$ mn Cash & investment securities Total Assets 41,754 43,192 37.7% 36,893 31.5% 30.8% 3,750 5,628 5,911 As at 31.3.2016 31.3.2017 30.9.2017 As at 31.3.2016 31.3.2017 30.9.2017 Secured and Unsecured Borrowings Mix EBITDA(3)
Slide 14: Substantial War Chest
Substantial War Chest • Presales HK$13.0 bn provides clear visibility of cash flow stream • War chest can be enhanced by leveraging unencumbered hotels War chest HK$ M Group cash and liquidity @ 30.9.2017 5,911 Undrawn banking facilities - Corporate use 1,800 Undrawn banking facilities - Constructio
Slide 15: Solid Balance Sheet to Support Future Growth
Solid Balance Sheet to Support Future Growth As at As at Debt mix by currencies 30.9.2017 31.3.2017 HK$ M HK$ M (1) Bank loans, notes and bonds USD Due within 1 year 4,028 1,431 23% Due 1-2 years 2,067 4,482 Due 2-5 years 7,192 6,547 Due more than 5 years 356 814 Total bank loans, notes and bonds 13
Slide 16: Proven Track Record
Proven Track Record As at and for the year/period ended (In HK$m) FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 CAGR 1HFY2018 Revenue 1,733 2,342 1,654 1,761 3,732 4,066 5,110 3,995 5,005 14.2% 2,776 - Sales of properties 951 1,376 245 46 1,946 1,589 2,962 1,971 2,937 15.1% 1,655 -
Slide 17: Return to Shareholders
Return to Shareholders FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 CAGR 1HFY2018 NAV/share(1) (HK$) 6.00 6.70 8.45 9.12 9.02 9.79 10.79 10% 11.07 Basic EPS (HK cents) 21 23 50 51 51 37 51 16% 46 Diluted EPS (HK cents) 21 23 50 51 51 36 51 16% 46 Dividend Total dividend per share (HK cents) 7 6
Slide 18: Review of Operations: Property Development
2. Review of Operations Property Development The Star Residences, Gold Coast, Australia 18
Slide 19: Strong Pipeline for Sustainable Growth
Strong Pipeline for Sustainable Growth Cumulative Expected attr. Expected attr. Expected Cumulative presale Projects under presale Location presales SFA(1) GDV(1) completion(2) as % of GDV @30.9.2017 (HK$ M) (sq. ft.) (HK$ M) % 1 Aspen Crest Hong Kong 1,060 64,000 1,060 FY2019 100% 2 The FIFTH(3) Me
Slide 20: Perth City Link, Perth, Australia
Perth City Link, Perth, Australia (Lots 3B, 6 and 7) Perth City Link Lots 3B, 6 &7 • Selected in May as preferred proponent for Lots 3B, 6 and 7 of Perth City Link • To be developed together with Lots 2 and 3A acquired in late 2016 • A major project being undertaken by Western Australian Government
Slide 21: Northern Gateway, Manchester, UK
Northern Gateway, Manchester, UK • Largest residential opportunity for transformational change ever in Manchester to deliver more than 10,000 new homes • Site area will be more than 350 acres (15mn sq. ft.); saleable floorspace expected to be 1,500,000 sq. ft. • Adjacent to MeadowSide (launched in O
Slide 22: Artra, Singapore
Artra, Singapore • Presale launched in April 2017, with promising sales performance • Located along Alexandra View, right next to Redhill MRT • A single 44-storey tower of 400 units with a mix of two-, three- and five-bedroom apartments from 786 sq ft to 2,583 sq. ft. • Attributable residential SFA:
Slide 23: Marin Point, Hong Kong
Marin Point, Hong Kong • Presale launched in May 2017 • Located at Sha Tau Kok, Hong Kong • Expected SFA: approx. 103,000 sq. ft. with 261 apartments • Expected total GDV: HK$1,082 mn • Expected completion date: FY2019 23
Slide 24: West Side Place (Tower 4), Melbourne, Australia
West Side Place (Tower 4), Melbourne, Australia • Launched in June 2017 • Part of a landmark project of the Group in Melbourne, featuring four high-rise towers located within the CBD • Expected SFA (Tower 4): approx. 565,000 sq. ft. • Expected GDV: approx. HK$2,987 mn • Expected completion date: FY2
Slide 25: The Star Residences, Gold Coast, Australia
The Star Residences, Gold Coast, Australia • Launched in September 2017 • A 200-meter tower featuring 423 residential units located adjacent to Jupiters Integrated Resort, in the CBD of Gold Coast • Expected attributable SFA: 98,000 sq. ft., expected attributable GDV: HK$549 mn • JV with The Star an
Slide 26: MeadowSide, Manchester, UK
MeadowSide, Manchester, UK • Presale launched in October • A mix of apartments, townhouses and penthouses to provide more than 750 new • Expected GDV: approx. HK$2,467 million homes around one of the biggest green space in Manchester city center, the historic • 4 buildings including a 41-storey glas
Slide 27: Review of Operations: Hotel Operations & Management
2. Review of Operations Hotel Operations & Management 27
Slide 28: Substantial Revaluation Surplus in Hotel Portfolio
Substantial Revaluation Surplus in Hotel Portfolio Capital Value Book Value Revaluation City Description Rooms @ 31.3.2017 @ 31.3.2017 Surplus (HK$ M) (HK$ M) (HK$ M) Hotels in operation Hong Kong 1 Dorsett Wanchai Hong Kong Near Wanchai and Causeway Bay 454 2,965 338 2,627 2 Cosmo Hotel Hong Kong H
Slide 29: Strong Overall Hotel Performance, Growth On Track
Strong Overall Hotel Performance, Growth On Track 1HFY2018 1HFY2017 YoY change Hong Kong Occupancy rate (i) 91.2% 87.2% +4.0 ppts Average room rate (HK$)(i) 655 632 +3.6% RevPAR (HK$)(i) 597 551 +8.3% Malaysia Occupancy rate 72.4% 68.3% +4.1 ppts Average room rate (MYR) 194 187 +3.7% RevPAR (MYR) 14
Slide 30: New Opening – Dorsett City, London
New Opening – Dorsett City, London • Soft opened in August 2017 • 13-storey hotel, 267 guests rooms • Located right next to the Aldgate Station, with a rooftop bar with views over the City of London 30
Slide 31: Track Record of Extracting Value from Hotel Development
Track Record of Extracting Value from Hotel Development 1H Silka West Kowloon FY2018 Date: May 2017 Consideration: HK$450 million Gain: HK$320 million Flexible Capital Deployment Provide additional cash flows to enable the Group to redeploy its resources to FY2013 Dorsett Regency Hotel other investm
Slide 32: Clear Pipeline for Mid-term Room Growth
Clear Pipeline for Mid-term Room Growth No. of rooms 12,000 • 22 owned hotels (6,869 rooms) under operation as at 10,091 10,000 9,516 30.9.2017 8,281 8,000 7,718 6,869 7,302 6,743 6,869 6,043 6,000 6,043 5,429 • 13 hotels (approx. 3,200 rooms) in the development 4,000 4,894 3,901 3,834 pipeline in n
Slide 33: Hotel Renovation Completed
Hotel Renovation Completed Dorsett Kuala Lumpur, Malaysia • 322 rooms, located in the heart of Kuala Lumpur’s Golden Triangle • Renovation completed in July 2017 33
Slide 34: Review of Operations: Car Park Operations & Facilities Management
2. Review of Operations Car park operations & facilities management 34
Slide 35: Car Park: Steady Cash Flow with Organic and Acquisition Growth
Car Park: Steady Cash Flow with Organic and Acquisition Growth As at 30 Sept. 2017 As at 31 March 2017 No. of No. of Car Park Revenue No. of Bays No. of Bays Car Park Car Park HK$ mn Australia Owned and managed 23 4,073 22 4,295 Managed only 357 64,634 325 55,339 700 641 613 616 623 Joint Venture ow
Slide 36: Regional Expansion – Latest Additions in Budapest, Hungary
Regional Expansion – Latest Additions in Budapest, Hungary • Acquired in October 2017 at EUR21 million • 6 car parks with approx. 1,400 spaces located in central district of Budapest • Group’s first car park acquisition in Europe, leveraging on Care Park’s advanced technology platform, further diver
Slide 37: Care Assist – Infrastructure Support Ready for Global Expansion
Care Assist – Infrastructure Support Ready for Global Expansion • Care Assist is the newly constructed facility • Operates 24-7 and currently manages facilities in the heart of Care Park’s Head Office in across Australia and New Zealand Melbourne • Goal is to deploy Care Assist across entire portfol
Slide 38: Steadily Growing Facilities Management Services
Steadily Growing Facilities Management Services • Asset-light business model with steady growth • 70 active contracts as at 30 September 2017 (64 as at 31 March 2017) • Facilities management services include: Reservoir, Melbourne ✓ Property management ✓ Apartment maintenance ✓ Apartment leasing ✓ Cl
Slide 39: Prospects
3. Prospects Concept of Queen’s Wharf, Brisbane, Australia 39
Slide 40: Company Outlook – Solid Foundation for Growth
Company Outlook – Solid Foundation for Growth • Continue to invest regionally leveraging on local expertise and taking advantage of property cycles Chinese Wallet Strategy • Pursuing opportunities arising from the anticipated increase in the outbound tourism from Asia Growth in • Hotel business is e
Slide 41: Company Awards Demonstrate Recognitions
Company Awards Demonstrate Recognitions Euromoney Best Managed Company in Asia in the Real‐Estate Category Best Executive in Hong Kong - Tan Sri Dato’ David Chiu Best Managed Small Cap Company Hong Kong Best Overall for Corporate Governance Best for Disclosure and Transparency Asiamoney Best for Sha
Slide 42: Company Awards Demonstrate Recognitions (Cont’d)
Company Awards Demonstrate Recognitions (Cont’d) The Asset Corporate Gold Award in Governance Award 2016 China Financial Market Best Investor Relations Award – Ms. Venus Zhao in 2016 Golden Hong Kong Stocks Best Listed Company at Social Responsibility Awards Institutional Investor Best Investor Rela
Slide 43: Appendix: Details of Investment Properties
Appendix: Details of Investment Properties Current Investment Properties GFA Attributable (sq. ft.) Pipeline Investment Properties GFA (sq. ft.) FEC Building, Central, Hong Kong(1) 16,000 West Side Place, Melbourne 84,000 FEC Building, Nathan Road, Hong Kong(1) 38,000 Elizabeth Quay, Perth 18,000 Ba
Slide 44: Appendix: Casino License Granted in October 2016
Appendix: Casino License Granted in October 2016 Investment Plan Residential Component (Approx., subject to planning) Total FEC Portion Expected SFA Expected GDV FEC’s Stake Component (A$ million) (A$ million) (sq. m.) (A$ million) Total investment of IR (100%) 1,930 n/a n/a Tower 4 48,174 409 Bank
Slide 45: Appendix: Australian Casino Comparison
Appendix: Australian Casino Comparison City Sydney Melbourne Brisbane Gold Coast Perth Adelaide Darwin City population(‘000)(2015 June) 4,904 (+1.7% yoy) 4,513 (+2.1% yoy) 2,345 (+2.3% yoy) 614 (+1.6% yoy) 2,112 (+3.4% yoy) 1,277 (+1.0%) 123 (+1.7% yoy) State/territory New South Wales Victoria Queen
Slide 46: Thank You
Thank You Questions & Answers FEC Official WeChat 46
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