Hongkong & Shanghai Hotels Ltd. · HKEX:45
Hongkong & Shanghai Hotels — The Hongkong and Shanghai Hotels — FY2010 Earnings Presentation
26 slides from Hongkong & Shanghai Hotels's earnings presentation, Mar 22, 2011
Slide 1: 2010 Annual Results Analysts Presentation
2010 Annual Results Analysts Presentation 22 March 2011
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and business of HSH. These forward-looking statements which include, without limitation, statements regarding future results of operations, financ
Slide 3: Overview of 2010
OVERVIEW OF 2010 Recovery in the global hospitality markets towards 2008 pre-crisis levels Inflationary pressures remain on operating and other costs, resulting in continued pressure on margins Performance has varied between different markets, with strength in Greater China but recovery lagging in s
Slide 4: Summary Results
SUMMARY RESULTS 2009 HK$ million (restated) 2010 Increase Turnover 4,218 4,707 12% EBITDA 924 1,143 24% EBITDA Margin 22% 24% 2pp Operating profit 586 794 35% Non-operating items 1,977 2,048 4% Taxation (96) (225) 134% Profit attributable to shareholders 2,660 3,008 13% EPS (HK cents) 182 204 12% Un
Slide 5: Income Statement
INCOME STATEMENT 2009 HK$ million (restated) 2010 Change % Revenue - Hotels 3,180 3,576 12% - Commercial Properties 637 688 8% - Clubs & Services 401 443 10% 4,218 4,707 12% EBITDA margin EBITDA 2009 2010 - Hotels 14% 17% 432 604 40% - Commercial Properties 66% 65% 418 450 8% - Clubs & Services 18%
Slide 6: Taxation
TAXATION 2009 HK$ million (restated) 2010 Change % Current tax 120 140 17% Deferred tax: Increase/(decrease) in net deferred tax liabilities in respect SUMMARY FINANCIAL PERFORMANCE 26 of valuation gains/(losses) of overseas investment properties (46) n/a Increase in net deferred tax liabilities rel
Slide 7: Underlying Profit
UNDERLYING PROFIT 2009 HK$ million (restated) 2010 Profit attributable to shareholders 2,660 3,008 Increase in fair value of investment properties (1,998) (1,938) Reversal of impairment losses - (110) Share of property valuation adjustment of a jointly controlled entity, net of tax (315) (614) Other
Slide 8: Cash Flows
CASH FLOWS HK$ million 2009 2010 Change % Net cash generated from operating activities 761 1,019 34% Capital expenditure (269) (276) 3% Net financing charges and dividends (177) (149) (16%) Recurring cash inflow after normal capex, financing charges and dividends 315 594 89% Investment in the Paris
Slide 9: Capital Expenditure 2010
CAPITAL EXPENDITURE 2010 HK$ million 2009 2010 Hotels 159 180 Commercial properties 103 61 Clubs and services 7 35 Total 269 276
Slide 10: Net Asset Value
NET ASSET VALUE As at 31/12/2009 (restated) As at 31/12/2010 Change % HK$'m Per share HK$'m Per share value (HK$) value (HK$) Net assets 26,147 17.79 29,103 19.66 11% Fair market value of hotels and golf SUMMARY FINANCIAL PERFORMANCE courses, net of related deferred tax and non-controlling interests
Slide 11: Financing
FINANCING HK$ million 2009 2010 Total committed facilities 5,005 5,491 Utilised (3,825) (4,332) AvailableSUMMARY bank facilities FINANCIAL PERFORMANCE 1,180 1,159 Cash at banks and in hand 1,835 2,658 Available funding 3,015 3,817 Excluding debts for The Peninsula Shanghai and The Peninsula Beverly
Slide 12: Financial Ratios
FINANCIAL RATIOS HK$ million 2009 2010 Gross borrowing 3,825 4,332 Cash at banks & in hand 1,835 2,658 Net borrowing 1,990 1,674 Net debt: EBITDA 2.2 times 1.5 times Net gearing 7% 5% Weighted average gross interest rate 3.2% 3.2% Interest cover - Gross 5.8 times 6.0 times - Net 6.8 times 7.4 times
Slide 13: Dividend History
DIVIDEND HISTORY HK cents 20 18¢ 16¢ 17¢ 15 12¢ Dividend per share 12 10.5 (+33%) 11 10 9¢ 8 6 5 6.5 6 5 4 3 0 2006 2007 2008 2009 2010 Interim Final
Slide 14: Total Shareholder Return
TOTAL SHAREHOLDER RETURN TSR - HSH vs HSI and APLI 60% 40% Returns (in %) 20% 0% -20% Dec 09 Dec 10 HSH Asia Pacific Lodging Index (APLI) Hang Seng Index (HSI)
Slide 15: Hotel Performance – Hong Kong
HOTEL PERFORMANCE – HONG KONG Hong Kong - Occupancy Hong Kong - Average Room Rate (HK$) Hong Kong - RevPAR (HK$) 85% 4,300 3,400 80% 4,200 3,200 75% 3,000 4,100 70% 2,800 4,000 65% 2,600 3,900 60% 2,400 3,800 55% 2,200 50% 3,700 2,000 45% 3,600 1,800 40% 3,500 1,600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 16: Hotel Performance – Other Asia
HOTEL PERFORMANCE – OTHER ASIA Other Asia - Occupancy Other Asia - Average Room Rate (HK$) Other Asia - RevPAR (HK$) 65% 2,400 1,400 2,300 1,300 60% 2,200 1,200 2,100 1,100 55% 2,000 1,000 50% 1,900 900 800 1,800 45% 1,700 700 40% 600 1,600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 RevPAR - 2008 RevPAR -
Slide 17: Hotel Performance - USA
HOTEL PERFORMANCE - USA The US - Occupancy The US - Average Room Rate (HK$) The US - RevPAR (HK$) 5,000 3,600 75% 3,400 4,800 70% 3,200 4,600 65% 3,000 4,400 2,800 60% 4,200 2,600 55% 2,400 4,000 2,200 50% 3,800 2,000 45% 3,600 1,800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Occupancy - 2008 Occupancy - 2
Slide 18: Hotel Shopping Arcades
HOTEL SHOPPING ARCADES Average yield per available square foot 450 400 350 300 250 HK$ 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 08 08 08 08 09 09 09 09 10 10 10 10 HK Other Asia US
Slide 19: Commercial Properties – The Repulse Bay
COMMERCIAL PROPERTIES – THE REPULSE BAY The Repulse Bay - Occupancy & Yield 80 110% 70 100% Average monthly yield per available 60 90% square foot (HK$) 50 80% Occupancy 40 70% 30 60% 20 50% 10 40% - 30% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Yield - Residential Yiel
Slide 20: Commercial Properties – The Peak Complex
COMMERCIAL PROPERTIES – THE PEAK COMPLEX The Peak Complex - Occupancy & Yield 90 110% 80 100% Average monthly yield per available 70 90% square foot (HK$) 60 80% Occupancy 50 70% 40 60% 30 50% 20 40% 10 30% - 20% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Yield - The Pea
Slide 21: Commercial Properties – The Landmark
COMMERCIAL PROPERTIES – THE LANDMARK The Landmark, Vietnam - Occupancy & Yield 35 100% 90% 30 Average monthly yield per available 80% 25 70% square foot (HK$) 60% Occupancy 20 50% 15 40% 10 30% 20% 5 10% - 0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Yield Occupancy
Slide 22: Clubs and Services Division
CLUBS AND SERVICES DIVISION The Peak Tram: revenue up 20% to HK$95 million, with number of passengers increased by 11% to 5.4 million Clubs and consultancies: revenue up 13%, mainly due to increased number of passengers at the Cathay Pacific Lounges Peninsula Merchandising: revenue up 27% to HK$95 m
Slide 23: Development – Planned Enhancements
DEVELOPMENT – PLANNED ENHANCEMENTS The Peninsula Hong Kong ►Guestrooms refurbishment of HK$450 million ►Expected completion in the 1st quarter of 2013 The Repulse Bay Complex ►Residential public area upgrade and de Ricou reconfiguration of HK$731 million ►Expected completion by the 3rd quarter of 20
Slide 24: The Peninsula Paris
THE PENINSULA PARIS Soft demolition work completed in April 2010 General contractor appointed in July 2010 Interior designs for public areas and guestrooms at advanced stage Scheduled for completion in 2013
Slide 25: Outlook
OUTLOOK Long term commitment to asset value enhancement Continued recovery in some markets, especially HK and China where the bulk of our assets are based Balance between revenues and costs continues to be a challenge Significant efforts will be made in improving service quality and efficiency Empha
Slide 26: Thank You
Thank You ‘THE HONGKONG AND SHANGHAI Horets, Limirep A YE EEA A
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