Hysan Development Co., Ltd. · HKEX:14
Hysan Development — H1 2023 Earnings Presentation
24 slides from Hysan Development's earnings presentation, Aug 10, 2023
Slide 1: Hysan Development 2023 Interim Results Analyst Briefing
Hysan Development 2023 Interim Results Analyst Briefing 10 August 2023 £) Hysan#ii
Slide 2: Disclaimer
Disclaimer This document has been prepared for general information purposes only, and is not, and should not be construed as an offer to sell, or a solicitation of an offer to buy any securities. Information and estimates contained and opinions expressed herein have been complied in good faith by Hy
Slide 3: Market Overview
Market Overview 3
Slide 4: Global Economic Uncertainties
Global Economic Uncertainties ❑ Ongoing geopolitical tensions, declining world trade and tighter monetary and fiscal policies ❑ Rising concerns about the stability of the international banking system, persistently high core inflation and growing geoeconomic fragmentation ❑ IMF revised the global eco
Slide 5: Hong Kong: Signs of Improvement
Hong Kong: Signs of Improvement ❑ Year-on-year GDP growth resumed ❑ Labour market continued to improve ❖ Unemployment rate dropped to 2.9% ❑ Hong Kong retail sales in 1H increased by 20.7% year-on-year ❑ The increasing inbound tourism numbers and the further resumption of economic activities will he
Slide 6: Business & Operation Review
Business & Operation Review 6
Slide 7: 2023 Interim Results
2023 Interim Results Revenue (HK$M) Period-end Occupancy Retail 98% (2022 Dec : 99%) *Excluding the impact of 1,777 enhancement works, retail portfolio achieved Office 89% (2022 Dec : 90%) revenue growth 1,683 Residential 61% (2022 Dec : 61%) 846 797 (48%) (47%) (47%) 762 Approximately 11% of our re
Slide 8: Retail
Retail Hysan Turnover Rent Trend (2018 - 2023) OCCUPANCY 98% YoY ↑67% as at June 30 ❑ Recover of retail sales at Hysan surpassed that 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H of Hong Kong 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 ❖ Turnover rent increased by 67% year-on-year Hysan Tenant Sales
Slide 9: Lee Gardens Rejuvenation
Lee Gardens Rejuvenation ❑ Curate content for Lee Gardens Community to cater the needs of different customers The Trendsetter Visitors & General Shoppers Home of Luxury & Flagships High Spenders with Drivers The Green Centric Young Families 9
Slide 10: Lee Gardens Rejuvenation
Lee Gardens Rejuvenation LEE GARDENS ❑ Lee Garden One enhancement works began in Feb ❑ Temporary new concept boutiques of luxury anchor tenants continued to attract strong support from members HYSAN PLACE ❑ Transformation made good progress in 1H ❖ Unveiling of the Urban Park ❖ Reopening of 4/F & 5/
Slide 11: Marketing Initiatives and Loyalty Programmes
Marketing Initiatives and Loyalty Programmes ❑ Our loyalty club members continued to provide strong support to our retail sales ❑ Tourist promotion campaign as travel resumes ❑ A variety of thematic campaigns were implemented to cater for the diverse interests and needs of customers 11
Slide 12: Office
Office Office Tenant Profile by Area (as at 30 June 2023) OCCUPANCY as at June 30 89% Others 14.8% Banking, Wealth Marketing Management & 2.2% Finance ❑ Full Range Offerings Education 25.3% 3.5% ❖ To capture the increasing demand for small to Retailers medium size offices 3.8% Insurance ❑ Vibrant an
Slide 13: Residential
Residential VILLA LUCCA TO KWA WAN PROJECT ❑ Certificate of Compliance in Q1 ❑ Development plan was approved in Q1, will be redeveloped in three 24-storey buildings ❑ Both transaction price and unit rate achieved new records ❑ Leverage Hysan’s expertise to oversee the design and operation of the ret
Slide 14: Sustainability Highlights
Sustainability Highlights 14
Slide 15: Sustainability Commitment
Sustainability Commitment ❑ Board-level Sustainability Committee was established since 2020 ❑ Community Business Model Strategic Vision Community Business Model Curate sustainable communities with thriving neighborhoods that are agile and resilient towards changes. Foster connection between people a
Slide 16: Sustainability Commitment
Sustainability Commitment ❑ Focus on achieving 4 key United Nations Sustainable Development Goals (“UNSDGs”) UNSDGs Hysan’s contribution towards achieving the respective UNSDGs ❑ Promote community wellness and resilience, health and safety via various programmes and 3 – Good Health activities to sta
Slide 17: Sustainability Targets & Achievements
Sustainability Targets & Achievements Category Targets / Indicators Status* ❑ Diversity and inclusion at Board Level: to achieve one-third of female directors by 2025 ❑ Achieved Governance ❑ Zero case of cybersecurity incidents ❑ Achieved ❑ Reduce 20% carbon intensity by 2024 (Baseline: 2005) ❑ Achi
Slide 18: Sustainability Performance
Sustainability Performance ESG Ratings Remained 4-star Remained AA Remained A Remained as Low Risk ESG Rating: 3.5 Awards and Accolades 9th Hong Kong Investor Relations Green Council’s UNSDG Achievement HKICPA’s Best Corporate Association Awards 2023 Awards Hong Kong 2022 Governance and ESG Awards 2
Slide 19: Financial Management
Financial Management 19
Slide 20: Financial & Capital Management
Financial & Capital Management Shareholders’ Fund HK$ 68.7b (- 2.1%*) NAV per share HK$ 66.9 (- 2.2%*) DPS HK 27 cent (flat) (*from 31 Dec 2022) 20
Slide 21: Financial & Capital Management
Financial & Capital Management Debt Maturity Profile as at 30 Jun 2023 Liquidity Management (HKD’m) Only less than 5% of total debts due in coming 18 months 7,912 Cash & cash equivalents on hand sufficiently cover all maturing debts in next 3 years (2023-2025) Ample undrawn committed banking facilit
Slide 22: Financial & Capital Management
Financial & Capital Management Key Financial Metrics Effective Net Gearing* 25.9% Interest Rate 3.9% Average Debt Fixed : Floating** 76% : 24% Maturity 4.8 years Credit Ratings Fitch A- Moody’s Baa1 *Net gearing is defined as borrowings less time deposits, cash and cash equivalents divided by total
Slide 23: Indicative Cap Rates
Indicative Cap Rates 30 Jun 2023 31 Dec 2022 Retail 5.25% - 5.50% 5.25% - 5.50% Office 4.25% - 5.00% 4.25% - 5.00% Residential 3.75% 3.75% 23
Slide 24: Thank You
—"/Hysan “it THANK YOU Ww
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