Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — FY2021 Earnings Presentation
44 slides from Ctf Services's earnings presentation, Sep 30, 2021
Slide 1: FY2021 Annual Results Analyst Presentation
FY2021 Annual Results Analyst Presentation 30 September 2021 New World Group Member NWS Holdings Limited © All rights reserved
Slide 2: Table of Contents
Brand Story Table INVESTof 1 NWS Business Strategy & Financial Summary Contents FOR PURPOSE 2 Core Business & Strategic Portfolio Highlight 3 Environment, Social & Governance 4 Appendices 2
Slide 3: Simplified Business Portfolio
Simplified Business Portfolio Core Business 15 toll roads in the Mainland (total length c.742 km) Roads Aviation (aircraft leasing) Construction Insurance Strategic Portfolio Logistics Facilities Management 3
Slide 4: Significant achievement in corporate transformation
Significant achievement in corporate transformation Acquired: FTLife & 3 expressways in Central Region Total considerations over HK$28Bn Transition began Redefined Core business & Strategic Portfolio Sustainable & progressive dividend policy Significant Progress Achieved Maintained healthy gearing
Slide 5: Excellent track record in capital recycling and value accretive acquisitions and disposals
Excellent track record in capital recycling & delivering value accretive acquisitions & disposals Major acquisitions Major disposals Attractive transaction valuation vs precedent deals Value accretive with NAV uplift Immediate AOP contribution Disposal businesses with dim outlook at premium
Slide 6: Sustainable long term growth
Sustainable long term growth Future Capital Deployment Economic and car ownership growth, booming logistics sector Partnership with SOE & major Mainland On-going expansion via M&A Roads investors in regional clusters Warehouse / Cold chain / Technology & integrated Core business Long term busi
Slide 7: Strong rebound with potentials yet to be fully reflected
Strong rebound with potentials yet to be fully reflected Short term catalyst (the Mainland border reopens) Insurance Facilities Management – HKCEC Facilities Management – GHK Facilities Management – Free Duty • 1H21 overall APE & HK business • Stringent cost savings • GHK & Central clinic ramp up •
Slide 8: Resilient & long standing dividend history
Resilient & long standing dividend history Sustainable & progressive 50% payout on net profit dividend policy on absolute DPS DPS (HK$) 1.6 First sign of delivering 1.4 progressive dividend even in the midst of 1.2 0.72 COVID 1 0.8 0.6 0.39 0.46 0.22 0.34 +3.4% 0.33 0.29 0.29 0.30 0.4 vs. 2020 0.2 0
Slide 9: Sustainable shareholders value creation
Sustainable shareholders value creation Sustainable Strong long term rebound with growth potential yet to be reflected Resilient & long standing dividend history Enhanced Earnings Quality + DPS growth 9
Slide 10: Financial highlights
Financial highlights 2020 2021 YoY For the year ended 30 Jun (HK$MM) (HK$MM) change % Revenue1 22,612.2 28,197.3 25 Attributable Operating Profit (AOP)2 3,514.3 5,225.9 49 • Roads & full period contribution of FTLife Core Business 3,145.7 4,223.7 34 • Improved performance of Facilities Management St
Slide 11: Performance by segment
Performance by segment 2020 2021 YoY change For the year ended 30 Jun (HK$MM) (HK$MM) % Roads Rapid traffic recovery after resumption of 907.4 1,807.5 99 Core Business toll fee collection. Excl. RMB appreciation, Aviation 421.9 496.0 18 AOP +88%. Construction Ceased account for the profit of Wai Kee
Slide 12: Core Business
a #7 B32 NWS Core Business
Slide 13: Roads - toll roads in the Mainland
Roads - 15 toll roads in the Mainland (c.742km) Swift recovery Segment AOP Core Business (HK$MM) ► Rapid economic recovery & fast-growing logistics sector drove swift recovery ↑ 99% 1,808 Noticeable rebound in traffic and toll revenue 907 FY2021 vs FY2020 FY2021 vs FY2019 Overall portfolio traffic v
Slide 14: Aviation
Aviation Improving business environment ► Our lessees benefited from global rollout of vaccination, gradual resumption of domestic flights, Segment AOP Core Business (HK$MM) formation of travel bubbles programmes & relaxation of travel restrictions in certain countries ↑18% ► No. of requests for ren
Slide 15: Construction
Construction Steady performance with positive long term outlook Segment AOP ► FY2021 New contract awarded: HK$7.0Bn1 Core Business (HK$MM) ↓11% ► Delay in tenders offered in market due to COVID-19 1,066 949 • Contract on hand HK$49.4Bn (-6% yoy) • Backlog HK$28.2Bn (-22% yoy) & Investment in Wai Kee
Slide 16: Insurance
Insurance Quality HK life insurer outperforming market Segment AOP ► New brand strategy “Think Beyond Insurance” Core Business (HK$MM) ► Insurance product enrichment1 fueled growth of APE of HK domestic business by 49% in FY2021 ↑29% 972 750 APE growth outperformed HK overall industry in 1H 2021 FTL
Slide 17: Strategic Portfolio
Sa 3 B32 NWS Pm at Strategic Portfolio
Slide 18: Logistics
Logistics Outstanding assets driving resilient performance ► ATL Logistics Centre (ATL) (Contributed c.70% of Logistics AOP) Segment AOP Strategic Portfolio (HK$MM) • Leader in HK market with premium facilities & quality services ↑6% • Occupancy 99.7%; average rent +1% 628 663 ► CUIRC • AOP +63% yoy
Slide 19: Facilities Management
Facilities Management Improving performance Segment AOP (HK$MM) ↑16% Strategic Portfolio ► GHK Hospital – AOL further narrowed & EBITDA breakeven since May 2021 • Outpatient & inpatient admission +45% & +29% yoy • Central clinic continues to ramp up (breakeven since July 2021) • Collaborate with NW
Slide 20: Discontinued operations
Discontinued operations ► SUEZ NWS & Derun Environment • Disposal of Derun Environment completed in May 2021 • Disposal of SUEZ NWS expects to be completed in FY20221 • Attractive valuation with implied FY2020 P/E: ‒ SUEZ NWS: c.18x ‒ Derun Environment: c.16x Notes: 1. Subject to completion 20
Slide 21: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG)
Slide 22: ESG ratings and recognitions
Brand Story FY2021 ESG ratings and recognitions (as of 20/8/2021) Achievements INVEST in ESG FOR Overall Rating: AA+ PURPOSE Listed on Hang Seng Corporate Sustainability Benchmark Index since 2013 Best Corporate Governance Award 2020 Gold Award in the Non-Hang Seng Index (Medium Capitalization) Pe
Slide 23: Sustainability financing
Brand Story FY2021 Sustainability financing Achievements INVEST in ESG FOR NWS First Sustainability-linked Loan PURPOSE On 29 June, NWS announced first sustainability-linked loan of HK$1Bn with Crédit Agricole Corporate and Investment Bank Total amount of sustainability financing as of 30 June 202
Slide 24: Environmental and social targets
Brand Story FY2021 Environmental Targets Sustainability INVEST Targets FOR and Progress PURPOSE Y-o-Y 35% 18% 11% Achieved The environmental metrics for FY2021 suggest significant progress towards our 2030 targets. However, the impact of the pandemic has led to a reduction in business activities and
Slide 25: Climate resilience key initiatives
Brand Story FY2021 Key initiatives in place INVEST Climate Resilience FOR • Completed 1st Climate-related Transition Risk Assessment towards low carbon economy in 2021 (updated Feb 2021) Measures PURPOSE • NWS’ Sustainability-Linked Loans totaled HK$3.8 billion as of 30 June 2021 • Climate Change Po
Slide 26: Hangzhou Ring Road: Innovation for enhanced, sustainable customer experience
FY2021 Hangzhou Ring Road: Innovation for enhanced, sustainable customer experience A pioneering concept for West Lake Service Area, scheduled to begin operation by end of 2021 Awarded a number of international accolades for innovation Offering holistic experience to refresh and engage road us
Slide 27: Hip Hing: Technological Innovation for premium services
FY2021 Hip Hing: Technological Innovation for premium services A leading contractor in Hong Kong committed to Decarbonization in continual innovation to enhance performance in Construction quality and safety Industrial technology in Adoption of Advanced Construction Technologies Sustainable Cons
Slide 28: FTLife Insurance: Innovation for Long-term Customer Wellbeing
FY2021 FTLife Insurance: Innovation for Long-term Customer Wellbeing Awarded seven accolades at the Bloomberg Businessweek/ Chinese Edition Financial Institution Awards 2021 and the Metro Finance GBA Insurance Awards Award-winning insurance product to meet society’s rapidly revolving needs in a
Slide 29: Appendices
Appendices |RESTRICTED|
Slide 30: Corporate Structure
Appendix Chow Tai Fook (Holding) Limited Corporate Structure 17.HK 1929.HK Market Cap: HK$81Bn Market Cap: HK$152Bn 100% 61% 75% 825.HK Market Cap: HK$2.3Bn 659.HK Market Cap: HK$28Bn Note: Market cap as at 29 Sep 2021 30
Slide 31: Financial highlights
Appendix Financial highlights 30 Jun 2020 30 Jun 2021 As at (HK$MM) (HK$MM) Total cash & bank balances 13,221.8 10,804.6 Total debt 30,955.7 25,348.0 Net debt position 17,733.9 14,543.4 Net gearing ratio 31% 25% Net Gearing Ratio 40% 35% 30% 25% 25% 20% 15% 10% 5% 0% FY2011 FY2012 FY2013 FY2014 FY20
Slide 32: AOP by segment and geography
Appendix AOP by segment and geography Core Business Others 12% represents 81% of AOP The Mainland 39% FY2020 13% Hong Kong 35% 49% 18% 19% 13% 9% 5% -12% Others 15% Roads Aviation Construction Insurance Strategic Discontinued Portfolio Operations The FY2021 Mainland Hong Kong 46% Logistics Environme
Slide 33: Summary of FY2021 non-core asset disposal – AOP Impact
Summary of FY2021 non-core asset disposal – AOP Impact FY2021 FY2022 Completion Date AOP Contribution AOP Contribution 15 Oct 2020 Transport HK$4.8M Nil 8 Dec 2020 Transport 11 May 2021 FY2021: 6-month HK$244.3M Nil Environment Expected in FY2020: SUEZ NWS – HK$232.7M Dividend covering the period fr
Slide 34: Portfolio of toll roads in the Mainland
Appendix Portfolio of 15 toll roads in the Mainland c.742 km Roads Guangdong Zhejiang Hubei Tianjin Shanxi Hunan # of Roads 7 1 1 1 3 2 Length 313.9 km 103.4 km 98.06 km 60.67 km 76.52 km 89.08 km Concession Expiry 2023–2035 2029 2040 2039 2023–2025 2038-2043 Cumulative Average Daily Traffic Flow 1,
Slide 35: Goshawk – Leading global aircraft leasing platform
Appendix Goshawk – Leading global aircraft leasing platform Aviation As at 30 Jun 2021, 162 aircraft on book1 Aircraft Type Geographical Spread A320 Europe B737 Asia family 16% family 50% 48% Middle- 30% East Other America 11% 22% 16% Africa 4% Australia 3% Aircraft leasing portfolio Fleet size2 222
Slide 36: Strategic investments in logistics in Greater China
Appendix Strategic investments in logistics in Greater China Logistics CUIRC Urumqi Jilin Inner • JV with China State Railway Group, Mongolia PSA, CIMC & Deutsche Bahn Liaoning Xinjiang Beijing • 12 large-scale rail container terminals in Dalian Tianjin the Mainland Hebei • Rail intermodal & interna
Slide 37: Insurance Investment Portfolio
Appendix Investment Portfolio (As of 30 June 2021) Insurance Investment Portfolio AUM* (HK$'M) Asset Types 58,713 50,748 40,368 Fixed Income 73% Equities & Public Other Investment Assets Funds & Cash 2019 2020 2021 Private 16% 9% Funds * Exclude Investment-Linked Assurance Scheme business 2% Geograp
Slide 38: Optimization of business portfolio
Optimization of business portfolio Acquisitions B A Fortified balance Suiyuenan Expy Sui-yue Expy Changliu Expy sheet Sky Aviation Leasing FTLife Insurance Co Ltd Int’l Ltd Healthy gearing FY2018-2H FY2019 FY2020 FY2021 Capital level 25% recycling Shares of Beijing Capital Hip Seng Group Healthcar
Slide 39: Transaction Update
Transaction Update Proposed Disposal of Entire Interest in Xiamen Container Terminal Group Co., Ltd.
Slide 40: NWS crystalizes value through the disposal
NWS crystalizes value through the disposal Transaction Summary Transaction Valuation On 30 June 2021, NWS announced the proposed disposal of its entire 20% stake in Xiamen Container Terminal Group (“XCTG”) at a consideration of RMB M XCTG RMB1,568M (HK$1,877.8M) Consideration 1,568 NWS shall be
Slide 41: Transaction rationale and benefits
Transaction rationale and benefits 1 Unlocks investment value of XCTG for NWS shareholders ‒ Consistent with NWS’s corporate strategy of disposing non-core assets and crystalizing value from its business portfolio to achieve sustainable long-term growth ‒ After the proposed disposal, NWS will have f
Slide 42: Overview of Xiamen Container Terminal Group (XCTG)
Overview of Xiamen Container Terminal Group (“XCTG”) XCTG JV structure of XCTG • Sino-foreign JV formed and operational since December 2013 • Provides port facilities and services for vessels; cargo and container loading/ unloading, transshipment, warehousing, logistics services; container piling, d
Slide 43: an all NWS
———a an all 32 NWS
Slide 44: 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