Wharf (Holdings) Ltd. · HKEX:4
Wharf (Holdings) — The Wharf (Holdings) — H1 2007 Earnings Presentation
26 slides from Wharf (Holdings)'s earnings presentation, Aug 15, 2007
Slide 1: The Wharf (Holdings) Limited Interim Results
The Wharf (Holdings) Limited Interim Results 15 August 2007
Slide 2: Key Recaps for Interim 2007
Key Recaps for Interim 2007 Properties continued to be the growth driver: turnover: HK$5,031M, +74%; profit: HK$3,191M, +68% ¾ Core properties Harbour City and Times Square represent 55% of Group’s total assets. Combined turnover: HK$2,587M (+14%), operating profit: HK$1,942M (+19%) ¾ Robust growt
Slide 3: Results Highlights
Results Highlights 1H 07 1H 06 % (HK$) (HK$) Change Turnover 8,609M 6,449M +33% Operating profit 4,371M 3,018M +45% Borrowing costs (480M) (412M) -17% Taxation (1,779M) (1,414M) -26% Interim Results 2007 Net profit excluding property revaluation 2,631M 1,900M +38% 3
Slide 4: Results Highlights
Results Highlights 1H 07 1H 06 % (HK$) (HK$) Change Net profit excluding revaluation surplus 2,631M 1,900M +38% Revaluation surplus (net of Tax & MI) 1,799M 4,359M -59% Profit attributable to shareholders 4,430M 6,259M -29% Earnings per share 1.81 2.56 -29% EPS (excluding revaluation surpl
Slide 5: Results Highlights
Results Highlights 1H 07 1H 06 % Change Borrowing Cost 480M 412M +17% Average Interest Rate 4.6% 4.7% -0.1pts Interest Cover 5.0x 5.5x -0.5x 1H 07 FY06 % Change Net Debt 22.1B 16.9B +31% Interim Results 2007 Debt to Shareholders’ Equity 28.1% 22.5% +5.6pts 5
Slide 6: Properties
Properties Revenue Segment Profit 1H 07 1H 06 Change 1H 07 1H 06 Change (HK$M) (HK$M) % (HK$M) (HK$M) % Property Investment 3,115 2,718 +15% 2,288 1,915 +19% Property Development 1,916 178 +976% 903 -10 +9130% Total 5,031 2,896 +74% 3,191 1,905 +68% 85% 73% Interim Results 2007 Segment Profit Alloca
Slide 7: Harbour City
Harbour City SEGMENT PERFORMANCE Revenue Occupancy 1H 07 1H 06 % % (HK$M) (HK$M) Change Retail 849 709 +20% 98% Office 638 526 +21% 94% Serviced Apartment 114 103 +11% 89% Hotel 450 451 - 87% Interim Results 2007 Total 2,051 1,789 +15% 7
Slide 8: Harbour City
Harbour City Retail Average occupancy: 98% (2006: 99%) Improving local sentiment and healthy tourist growth facilitated retail sales growth Average tenant’s sales psf +20% YoY Conversion of Level 4 of OC into 37,000 s.f. lettable space well underway, completion: late 2007 Office Average oc
Slide 9: Times Square
Times Square SEGMENT PERFORMANCE Revenue Occupancy 1H 07 1H 06 % % (HK$M) (HK$M) Change Retail 362 334 +8% 99% Office 174 139 +25% 97% Total 536 473 +13% Interim Results 2007 9
Slide 10: Times Square
Times Square Retail Average occupancy: 99% (2006: ~100%) Favourable rental growth on new leases and renewals Trade-mix refinement continued Office Occupancy: 97% (2006: 93%) New lettings: 70,000 s.f.; included in-house expansions Retention rate: 78% Interim Results 2007 10
Slide 11: China Properties
China Properties Property Investment 3 Times Squares (Shanghai, Beijing, & Chongqing) performed satisfactorily 1H07 Revenue: HK$201M, +28%, Operating profit: HK$100M, +56% 1717, Nanjing Xi Road, Shanghai 1.6M s.f. GFA top quality Grade A office tower Superstructure works in progress Comp
Slide 12: China Properties - Property Development
China Properties Property Development Development profit: HK$567M, due to sales recognition of sold units at Wellington Garden and selected towers of Wuhan Times Square upon completion Wellington Garden ¾ Residential, completion: 4/2007 ¾ 94% of units launched sold Wuhan Times Square ¾ Mix com
Slide 13: China Properties - Property Development
China Properties Property Development Other on-going projects Dalian Times Square ¾ Retail & residential complex, completion: mid 2008, 1.9M s.f Chengdu – No. 11 Dong Da Jie ¾ Mixed use (retail, office, hotel, residential), completion: 2010, 6.1M s.f. Chengdu – No. 10 Gaoxin District ¾ High-
Slide 14: Other Properties
Other Properties Hong Kong Property Developments Revenue: HK$554M, +213% Three houses at Gough Hill Path sold in 1H2007 at over HK$30,000 psf, sold the 5th house in 6/2007 at nearly HK$35,000 psf. Sold Wharf’s remaining stock (380K s.f.) in Grandtech Centre (Godown Building in Shatin) in 5/200
Slide 15: Other Properties - Marco Polo Hotels
Other Properties – Marco Polo Hotels Current profile 11 hotels (9 in operation, 2 under construction) in the Asia Pacific Region 2 hotels under construction – Wuhan & Chengdu Hong Kong Hotel and club revenue: HK$450M 6.0% growth in average room rates, occupancy (87%) Hotels opened in 2
Slide 16: Logistics
Logistics Revenue Segment Profit 1H 07 1H 06 % 1H 07 1H 06 (HK$M) (HK$M) Change (HK$M) (HK$M) % Change Logistics 1,689 1,609 +5% 854 830 +3% Interim Results 2007 10% 20% Segment Profit Allocation As % of Group NAV 16
Slide 17: Logistics
Logistics Revenue Throughput 1H 07 1H 06 % 1H 07 1H 06 % (HK$M) (HK$M) Change TEUs(M) TEUs(M) Change Modern Terminals 1,495 1,407 +6% 2.72 2.51 +8% 1H 07 1H 06 % (HK$M) (HK$M) Change MTL’s Associates & jointly Interim Results 2007 106 42 +152% controlled entities (post-tax) 17
Slide 18: Modern Terminals
Modern Terminals Hong Kong Throughput: 2.72M TEUs, +9% Market share: 32.9% (2006: 33.9%) China Dachan Bay Phase I (65%) – 5 berths, 2.5M TEUs, 1st two berths will commence operation towards end 2007 Taicang ¾ Phase I (51%) – 1H2007 throughput: 304,000 TEUs, +35% ¾ Phase II (70%) – 1st berth
Slide 19: Communication, Media & Entertainment (CME)
Communication, Media & Entertainment (CME) Revenue Segment Profit 1H 07 1H 06 % 1H 07 1H 06 (HK$M) (HK$M) Change (HK$M) (HK$M) % Change CME 1,903 1,959 -3% 182 141 +29% Interim Results 2007 4% 5% Segment Profit Allocation As % of Group NAV 19
Slide 20: CME
CME Revenue No. of Subscribers/fixed lines 1H 07 1H 06 % 1H 07 FY 06 % Change (HK$M) (HK$M) Change Pay TV 827 966 -14% 830,000 786,000 +6% Internet & 295 296 - 324,000 328,000 -1% Multimedia Wharf T&T 708 681 +4% 579,000 562,000 +3% Interim Results 2007 20
Slide 21: CME
CME Pay TV Successfully marketed itself as the all-in-one TV broadcaster to provide professional news, entertainment programs, tonnage and choice in local and international movies and full-bodied sports. Internet & Multimedia Steady for both subscription and turnover and the market went ex-g
Slide 22: Profit & Loss Summary
Profit & Loss Summary 1H 07 1H 06 % (HK$M) (HK$M) Change Turnover 8,609 6,449 +33% Operating Profit 4,371 3,018 +45% Revaluation Surplus 2,537 5,328 -52% Profit Before Taxation 6,579 7,971 -17% Taxation (Incl. deferred taxation on revaluation) (1,779) (1,414) +26% Profit After Taxation 4,800 6,557 -
Slide 23: Debt Profile
Debt Profile As at 30 June 2007 Un-drawn Total Debt Facility Company and wholly owned subsidiaries (HK$B) (HK$B) Committed facilities 15.7 62% 2.9 Uncommitted facilities 0.3 1% 1.9 Total: 16.0 63% 4.8 Non-wholly owned subsidiaries Modern Terminals Limited (non-recourse to Wharf) 9.0 36% 7.8 i-CABLE
Slide 24: NAV Adjustment
NAV Adjustment As at 30 June 2007 Per Share For Supplemental Information Only: (HK$) NAV per Balance Sheet 32.21 Subjective adjustments:- Modern Terminals (on latest transacted price) 3.03 Hotel Properties (on independent valuation) 1.55 i-CABLE (on market value) 0.32 Deferred tax on revaluati
Slide 25: Outlook – China Properties
Outlook – China Properties Projects Total Floor Area (s.f.) in ‘M Investment Properties – BCTS, STS, CTS 3.2 Lot 1717, Nan Jing Xi Road, Shanghai 1.6 Wellington Garden, Shanghai 0.6 No. 1 Xin Hua Road, Shanghai 0.3 Jingan Garden, Shanghai 1.0 Dalian Times Square, Dalian 1.9 Wuhan Times Square, Wuhan
Slide 26: End of Presentation
End of Presentation ~ WHARF Established 1886