Hysan Development Co., Ltd. · HKEX:14
Hysan Development — Shareholder Meeting (May 2018)
38 slides from Hysan Development's shareholder meeting presentation, May 8, 2018
Slide 1: Hysan Development 2018 Annual General Meeting
Hysan Development 2018 Annual General Meeting 希慎興業 2018年股東周年大會 8. 5. 2018
Slide 2: Hysan's Board of Directors
Hysan’s Board of Directors 希慎董事會 Chairman 主席 Lee Irene Yun-Lien 利蘊蓮 Independent Non-Executive Directors 獨立非執行董事 Churchouse Frederick Peter 卓百德 Fan Yan Hok Philip 范仁鶴 Lau Lawrence Juen-Yee 劉遵義 Poon Chung Yin Joseph 潘仲賢 Non-Executive Directors 非執行董事 Jebsen Hans Michael Jebsen Hans Michael Lee Anthony
Slide 3: Senior Management
Senior Management 高層管理人員 Lui Kon Wai Ricky Hao Shu Yan Roger 呂幹威 賀樹人 Chief Operating Officer Chief Financial Officer 首席營運總監 首席財務總監 Chan Wing Chung Sunny Choy Man Wai Kitty Lam Tze Pon Tiffany Yip Mo Ching Jessica Cheung Ka Ki Maggie 陳詠聰 蔡雯慧 林之芃 葉慕貞 張嘉琪 Director, Projects Director, Retail Director, M
Slide 4: 2017 Business Environment Overview
2017 Business Environment Overview 2017年營商環境概覽 ● Turnover increased by 0.4%; against a slight decline in Recurring Underlying Profit of 0.8% ● Reported Profit increase reflecting changes in fair value of investment properties ● Retail portfolio occupancy at 97%; Office portfolio occupancy at 96% ● C
Slide 5: Overview
Overview 概覽 ● Reasonable growth in 2017 global economy ● Hong Kong’s economy echoed this positive sentiment ● Local retail sales saw uptick in growth ● Office leasing continued to be stable ● 全球經濟在2017年錄得合理增長 ● 香港經濟受利好環境帶動 ● 香港零售業銷售額錄得輕微增長 ● 寫字樓租賃業務繼續保持平穩 5
Slide 6: Retail Changes
Retail Changes 零售業務的轉變 ● “Generational shift”: Millennials and Generation Z’ers are driving changes in the where, what, how and when products and services are delivered ● “Demographic change”: Mainland tourists and “New Hong Kong” residents, who came to settle in Hong Kong over the past 10 to 20 yea
Slide 7: Retail Changes (con't)
Retail Changes (con’t) 零售業務的轉變（續） ● Technology advancements: Relentless growth of e-commerce, dominance of mobile technology, prevalence of social media ● 科技日益昌明： 電子商務銷售額不斷上升、流動技術的主導優勢與日俱增，社交媒體更是 無處不在 7
Slide 8: Retail Changes (con't)
Retail Changes (con’t) 零售業務的轉變（續） ● Brands and retailers, as well as online operators, are making moves to address these issues ● Hysan, as a landlord mall operator, needs to re-invent and re-imagine both strategically and operationally ● 品牌、零售商，以及網上營運商都採取行動應對這個趨勢 ● 希慎作為業主及商場營運商，需要重塑及重新構想策略及營運層面的種種
Slide 9: Retail Changes (con't)
Retail Changes (con’t) 零售業務的轉變（續） ● Give shoppers “extra special” touch to make the shopping experience socially pleasant and interesting ● Customers now offered personalised and unique items and services ● Hysan started journey into new retail and will continuously adapt our offerings ● 提供「額外的特殊」體驗
Slide 10: Retail Changes (con't)
Retail Changes (con’t) 零售業務的轉變（續） Early workout at Heading into work Hysan Place for a A quick coffee to Browsing in book gym 上班工作 quick lunch perk up store before 在健身室作晨早 在希慎廣場午膳 呷一杯咖啡抖擻 heading to dinner 運動 精神 晚上聚餐前到書 店逛逛 10
Slide 11: Office Changes
Office Changes 寫字樓業務的轉變 ● “Generational changes”: Incoming workforce want more fluid and mobile work style plus work in social setting Co-working space is growing and Hysan is increasing its office portfolio’s co-working space exposure to over 5% ● Multinationals opting to relocate to non-Centra
Slide 12: Hysan's Progress in 2017
Hysan’s Progress in 2017 希慎2017年的業務進展 ● Lee Garden Three completed in December 2017 First office tenant moved in Other multinationals from a diverse business background moving in Spaces, community-based co-working brand, establishing flagship here Retail podium welcomes food and beverage out
Slide 13: Hysan's Progress in 2017 (con't)
Hysan’s Progress in 2017 (con’t) 希慎2017年的業務進展（續） ● Marketing’s tenant collaboration received media attention, extensive footfall and healthy spending figures Revamped Louis Vuitton shop eslite summer programme Colourful I.T. showcase ● Loyalty clubs saw significant percentage growth of members
Slide 14: Hysan's Progress in 2017 (con't)
Hysan’s Progress in 2017 (con’t) 希慎2017年的業務進展（續） ● Office Continue to enhance an inclusive office community that fits the needs and demands of modern-day users Diverse office portfolio which includes sales, banking, finance and insurance, technology, health and wellness, as well as high-end bran
Slide 15: Looking Ahead
Looking Ahead 展望未來 ● Continue to support brands that offer classic luxury ● But also strengthen our commitment to promote lifestyle through food and beverage, as well as health and wellness, in an environment with a strong sense of community ● This will define the new retail where emerging consumers
Slide 16: Looking Ahead (con't)
Looking Ahead (con’t) 展望未來（續） ● Bring new initiatives to market with greater speed ● More digitalised and data-driven, and technology adopted at consumer level ● Maintain frequent dialogues with online retail operators and seek opportunities for partnerships ● Innovate and curate relevant content fo
Slide 17: Looking Ahead (con't)
Looking Ahead (con’t) 展望未來（續） ● Trend of global economic expansion is likely to continue in 2018; Hong Kong economy also expected to continue to grow ● Lee Garden Three’s completion confirms our commitment to expand our lifestyle theme and curate the contents of the Lee Gardens community ● 全球經濟的擴張趨勢
Slide 18: 2017 Annual Results and Highlights: Retail Portfolio
2017 Annual Results and Highlights: Retail Portfolio 2017年全年業績及摘要：商舖業務 ● Retail portfolio turnover decreased by 2.2% to HK$1,925 million (2016: HK$1,969 million) ● Occupancy: 97% as at 31 Dec 2017 (31 Dec 2016: 99%) ● Our full year new letting, renewals, and reviews saw double digit negative rental
Slide 19: 2017 Annual Results and Highlights: Retail Portfolio (con't)
2017 Annual Results and Highlights: Retail Portfolio (con’t) 2017年全年業績及摘要：商舖業務 （續） ● Total foot traffic slightly decreased due to some major renovation and fit out work for new tenants Improvement seen towards the end of the year ● The tenant sales for 2017 saw single-digit percentage increase, wh
Slide 20: 2017 Annual Results and Highlights: Retail Portfolio (con't)
2017 Annual Results and Highlights: Retail Portfolio (con’t) 2017年全年業績及摘要：商舖業務 （續） ● Newly joined tenants included Brunello Cucinelli, Zeiss Vision Center by Puyi Optical, Cha Ling, i.t blue block, BRICK LANE, The PHO and IPPUDO ● In early 2018, we welcome 10 Shanghai and Ta-Ke ● 新加入的租戶包括Brunello Cu
Slide 21: 2017 Annual Results and Highlights: Retail Portfolio (con't)
2017 Annual Results and Highlights: Retail Portfolio (con’t) 2017年全年業績及摘要：商舖業務 （續） ● Show-stopping events at Hysan’s portfolio ● Hong Kong’s most international sporting event Rugby Seven’s Fan Walk attracted overseas fans and local visitors Fan Walk’s dining and shopping promotions brought custome
Slide 22: 2017 Annual Results and Highlights: Office Portfolio
2017 Annual Results and Highlights: Office Portfolio 2017年全年業績及摘要: 寫字樓業務 ● Office portfolio turnover increased by 5.2% to HK$1,359 million (2016: HK$1,292 million) ● Occupancy: 96% as at 31 Dec 2017 (31 Dec 2016: 96%) ● Positive rental reversion in renewals, reviews and new lettings across the portf
Slide 23: 2017 Annual Results and Highlights: Office Portfolio (con't)
2017 Annual Results and Highlights: Office Portfolio (con’t) 2017年全年業績及摘要: 寫字樓業務（續） ● Hysan’s office space accounts for more than 50% of its overall portfolio’s gross floor area ● Contributed 38% of its turnover ● 希慎寫字樓業務組合佔集團業務總樓面面積 超過50% ● 佔營業額的38% 23
Slide 24: 2017 Annual Results and Highlights: Office Portfolio (con't)
2017 Annual Results and Highlights: Office Portfolio (con’t) 2017年全年業績及摘要: 寫字樓業務（續） ● Causeway Bay is one of the most sought-after areas for multinational and local corporations ● Lee Garden Three pre-leasing slowed down somewhat in second half of 2017, but close to 55% of its office space committed
Slide 25: 2017 Annual Results and Highlights: Office Portfolio (con't)
2017 Annual Results and Highlights: Office Portfolio (con’t) 2017年全年業績及摘要: 寫字樓業務（續） ● Balanced tenant mix showing the portfolio’s ● 均衡租戶組合反映寫字樓業務組合 diversity: 的多元化： Professional and Consulting 專業及顧問服務業 Banking and Finance 金融業 Insurance 保險業 Semi-Retail 綜合服務業 The four above categorie
Slide 26: 2017 Annual Results and Highlights: Residential Portfolio
2017 Annual Results and Highlights: Residential Portfolio 2017年全年業績及摘要：住宅業務 ● Residential portfolio turnover decreased by 3.6% to HK$264 million (2016: HK$274 million) ● Positive rental reversion on renewals, reviews and new lettings ● Occupancy: 75% as at 31 Dec 2017 (31 Dec 2016: 82%) ● Vacancy la
Slide 27: 2017 Annual Results and Highlights: Strong Financial Position
2017 Annual Results and Highlights: Strong Financial Position 2017年全年業績及摘要：穩健財政狀況 Low Gearing ● Total Gross Debt: HK$6,176 million ● Net Debt to Equity: 5.0% 低負債率 ● 債務總額： 61億7千6百萬港元 ● 淨債務與股東權益比率：5.0% 27
Slide 28: 2017 Annual Results and Highlights: Strong Financial Position (con't)
2017 Annual Results and Highlights: Strong Financial Position (con’t) 2017年全年業績及摘要：穩健財政狀況（續） Stable Debt Profile ● Fixed Rate Debt: 74.9% of the total gross debt ● Average Debt Maturity: 4.3 years ● Average Cost of Finance: 3.4% 穩定債務狀況 ● 定息債務：佔債務總額 74.9% ● 平均債務期限：4.3年 ● 平均借貸成本：3.4% 28
Slide 29: 2017 Annual Results and Highlights: Strong Financial Position (con't)
2017 Annual Results and Highlights: Strong Financial Position (con’t) 2017年全年業績及摘要：穩健財政狀況（續） Strong Credit Rating ● Net Interest Coverage: 17.1 times ● Moody’s: A3; Standard and Poor’s: BBB+ 信貸評級優異 ● 淨利息償付率：17.1倍 ● 穆迪：A3；標準普爾：BBB+ 29
Slide 30: Hysan's Business Updates: Retail Portfolio
Hysan’s Business Updates: Retail Portfolio 集團業務最新進展：商舖業務 ● Occupancy: At the end of March 2018, excluding the newly completed Lee Garden Three, the Retail occupancy was 98% ● Estimated Tenant Sales: The first three months of 2018 saw a healthy double digit percentage growth, as compared to the same
Slide 31: Hysan's Business Updates: Retail Portfolio (con't)
Hysan’s Business Updates: Retail Portfolio (con’t) 集團業務最新進展：商舖業務（續） ● Retail sales in Hong Kong and in our portfolio are generally improving ● The renewal/new let discussions for a majority of the leases expiring in 2018 are benefiting from this positive market sentiment ● In response to the structu
Slide 32: Hysan's Business Updates: Retail Portfolio (con't)
Hysan’s Business Updates: Retail Portfolio (con’t) 集團業務最新進展：商舖業務 （續） ● Growth in our loyalty programmes: Healthy double-digit percentage growth in terms of VIP Club Avenue’s membership and spending in Q1 2018, as compared to the same period in 2017 General shoppers’ Lee Gardens Plus also saw hea
Slide 33: Hysan's Business Updates: Retail Portfolio (con't)
Hysan’s Business Updates: Retail Portfolio (con’t) 集團業務最新進展：商舖業務 （續） ● Double digit percentage growth in social media reach and following in Facebook and WeChat respectively in Q1 2018, as compared to the same period in 2017 ● 與去年同期比較，2018年首季， Facebook及微信的社交媒體接觸率及關注數字分別錄得 雙位數百分比增長 33
Slide 34: Hysan's Business Updates: Office Portfolio
Hysan’s Business Updates: Office Portfolio 集團業務最新進展：寫字樓業務 ● Occupancy: At the end of March 2018, excluding the newly completed Lee Garden Three, the Office occupancy was 97%. ● Rental Reversion: Q1 2018 saw positive rental reversion with an average percentage growth in the teens ● 出租率：如不包括剛落成的利園三期，於
Slide 35: Hysan's Business Updates: Office Portfolio (con't)
Hysan’s Business Updates: Office Portfolio (con’t) 集團業務最新進展：寫字樓業務（續） ● Banking and Finance now takes up the most space (slightly more than 20% of the total lettable area) in Hysan’s quality office portfolio, after a renowned international financial institution took up multiple floors in Lee Garden T
Slide 36: Hysan's Business Updates: Residential Portfolio
Hysan’s Business Updates: Residential Portfolio 集團業務最新進展：住宅業務 ● Occupancy: At the end of March 2018, the residential occupancy was 76% ● Rental Reversion: Q1 2018 saw positive rental reversion with an average percentage growth in low single digit ● 出租率：於2018年3月底為76% ● 續約租金：2018年首季錄得平均低單位數的百分比增幅 36
Slide 37: Hysan Business Updates: Development of Lee Garden Three
Hysan Business Updates: Development of Lee Garden Three 集團業務最新進展：利園三期發展項目 OCCUPANCY FOR RETAIL OCCUPANCY FOR OFFICE AT THE END OF APRIL 2018 AT THE END OF APRIL 2018 截至2018年4月底的商舖出租率 截至2018年4月底的寫字樓出租率 Vacant Vacant 待出租 待出租 25% 5% Occupied Occupied 已出租 已出租 75% 95% ● Occupancy: As at the end of ● Occu
Slide 38: Thank you
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