Hung Hing Printing Group Limited · HKEX:450

Hung Hing Printing — FY2017 Earnings Presentation

31 slides from Hung Hing Printing's earnings presentation, 2018

  1. Slide 1: Annual Results 2017

    Annual Results 2017 2017年业绩简报 At Hung Hing, we are proud of our 60+ years of printing and packaging excellence, which has seen the Group grown from a small printing house to one of the largest printing solution providers in Asia with an extensive global outreach. ©2017 Hung Hing Printing Group Ltd.

  2. Slide 2: 2017 Results: 6% sales growth; shareholders' profit up over 27 times

    Hung Hing Printing Group Ltd. - 2017 Results 鸿兴印刷集团2017年度业绩 Delivered 6% sales growth; Shareholders’ profit increased over 27 times 保持穩定销售增长6%，股東應佔溢利大幅提升近27倍 (Unit: HK$ million / 单位: 港 幣 百 萬 元 ) Year 2017 Year 2016 • Group revenue growth 6.1% 3,136 2,956 集團營業額增长6.1% • Operating profit significantly

  3. Slide 3: Sales Revenue - External Customers

    Sales Revenue - External Customers 营业额 - 対外 Overall Sales Growth +6.1%, including BPP +4% / CPP +10% / CB +24% / PT +3% (HK$ million) 3,500 3,041 3,016 3,037 3,136 2,956 Paper Trading 3,000 425 271 392 429 (PT) 228 414 186 2,500 198 188 150 786 696 688 Corrugated 2,000 728 626 Box (CB) 1,500 Consume

  4. Slide 4: Group EBITDA

    Group EBITDA 息税折旧前溢利 Group EBITDA uplifted to HK$1,294 mil with the gain from Disposal HK$1,144m 息税折旧前溢利上 升 至 1 2 . 9 4 亿 港 元 ( 包 括 出 售 资 产 收 益 1 1 . 4 4 亿 港 元 ) EBITDA (HK$ million) EBITDA as % of Sales 1,400 1,294 41.3% 45.0% 40.0% 1,200 35.0% 1,000 30.0% 800 25.0% 600 20.0% 216 15.0% 400 132 158

  5. Slide 5: Segment Sales & Profit Contribution

    Segment Sales & Profit Contribution 部门销售及溢利贡献率 All four segments grew in sales from +3% to +24%, and improved in profit contribution except for BPP due to timing of price adjustments for annual contracts Books and Package Printing (BPP) Consumer Product Packaging (CPP) Sales (HK$ mil.) Sales (HK$ mi

  6. Slide 6: Group Income Statement

    Group Income Statement Achieved profits HK$ 1,050 mil. and EPS HK cents 116.7 attributable to shareholders For the twelve months period ended 31 Dec Comment (Unit: HK$' 000) 2017 2016 Change vs. 2016 Revenue 3,135,659 2,955,924 179,735 6.1% Mix & Pricing: BPP +4%; CPP +10%; CB +24%; PT +3% Cost of s

  7. Slide 7: Group Income Statement – Excl. the effect of SHPSZ disposal

    Group Income Statement – Excl. the effect of SHPSZ disposal Excluded the effect of disposal and one-off charges; the opr. profit / profit attri. to shareholders increased to HK$ 77m / HK$ 40m resp. (up +20% & +8% vs. PY) For the twelve months period ended 31 Dec Comment (Unit: HK$' 000) 2017 2016 Ch

  8. Slide 8: Robust financial position: Strong cash holding and liquidity

    Robust financial position: Strong cash holding and liquidity Catalysts for value creation and uplifting shareholders return (both short-term & long- term) with continuous transformation ahead considering acquisitions and divestures As at Dec 31 (HK$ million) 2017 2016 Comment Changes Assets Non-curr

  9. Slide 9: Profits & Earnings per Share

    Profits & Earnings per Share 公司权益持有人应佔溢利及每股盈利 Earnings per share up over 27 times 每 股 盈 利 提 升 近 2 7 倍 Profits Attributable to Shareholders Basic EPS 1200 140 1050 120 116.7 1000 100 800 (HK$ million) (HK Cents) 80 600 60 400 40 200 20 77 41 8.5 4.5 38 38 0.9 4.2 4.2 8 0 0 2013 2014 2015 2016 2017 20

  10. Slide 10: Proposed Special & Final Dividends

    Proposed Special & Final Dividends 建议派发特別及末期息 Uplifting shareholders return short-term with special dividend 27 cents, and alluding to long-term enhanced dividend growth via continuous transformation and value creation (HK¢ per share) Commentary 35.0 32 • 2017 Dividends Interim (paid) 2 cents 30.0 F

  11. Slide 11: Proposed special dividend and final dividend to uplift shareholders return

    Hung Hing Printing Group Ltd. - 2017 Results 鸿兴印刷集团2017年度业绩 Proposed special dividend 27 cents & final dividend 3 cents to uplift shareholders return 建议派发末 期 股 息 3 仙 及特 別 股 息 2 7 仙 以 提 升 股東回报 (Unit: HK$ million / 单位: 港 幣 百 萬 元 ) Year 2017 Year 2016 • Group revenue growth 6.1% 3,136 2,956 集團營業額增长6.1%

  12. Slide 12: Appendices

    Appendices ©2017 Hung Hing Printing Group Ltd.

  13. Slide 13: Hung Hing's Self-own Network of Facilities

    Hung Hing’s Self-own Network of Facilities WX: 无锡市国家高新技术产业开发区 ZS:中山市火炬开发区逸仙路 长江南路 Printing and manufacturing of folding Printing & mfg. of folding cartons, litho cartons, litho-lam & corrugated box lam and corrugated containers Awarded certifications of ISO9001, Awarded certifications of ISO9001, IS

  14. Slide 14: Business Structure

    Business Structure Hung Hing Printing Group Limited Book & package Consumer product Corrugated Paper Beluga printing packaging box trading 6% % 2017 59% HK$1,837mm 22% HK$186mm 14% N.A. HK$688mm HK$425mm Market Leader Top 5 in Major player in Leader in Innovative position globally China South China

  15. Slide 15: Segment breakdown

    Segment breakdown Books & Packaging Printing Children Books Conventional Deluxe Package Greeting Sales & Novelty Books Packaging Printing Cards Promotion 47% 16% 5% 22% 10% N/A End-market usage • International • International • Brands • Toy • Greeting Card • Brands Publishers Publishers • Electronic

  16. Slide 16: Appendix: Company history

    Appendix 1992 1950 Founded as a small printing 1959 1966 1970 1989 Listed on the Stock Diversified into Began operation Expanded into Relocated to Tai shop in Central, Hong Kong, by Exchange of the printing and in corrugated paper trading Po Industrial Mr. Yam Cheong Hung. Hong Kong. manufacturing o

  17. Slide 17: Appendix: Production sites

    Appendix Hong Kong Shenzhen Zhongshan Wuxi Heshan • Relocated to Tai Po • Printing and manufacturing of • Printing and • Printing and • Established in 2007 Industrial Estate in folding cartons, children’s book, manufacturing of manufacturing of folding for printing children’s 1989 . conventional boo

  18. Slide 18: Appendix: Our Global Presence

    Appendix: Our Global Presence Sales Offices: Benelux Scandinavia Germany Production United Kingdom Plant France USA Hong Kong Headquarter South America ©2017 Hung Hing Printing Group Ltd. I p. 18 ©2017 Hung Hing Printing Group Ltd. | confidential

  19. Slide 19: Appendix: Innovation Hub at HH

    Appendix: Innovation Hub at HH Our team is specialized in creative design and product development for a brand new and exciting category of 'print + digital' products using innovative and patented technologies. Improve Creative De-Spec and cost Creating new re-assessment concepts and formats Problem

  20. Slide 20: Vertical Integrated Printing Group

    Vertical Integrated Printing Group From paper to finished product. ©2017 Hung Hing Printing Group Ltd.

  21. Slide 21: Hung Hing provides service

    Hung Hing provides service Graphic design Print & paper Paper engineering/ packaging- both litho & Structural design flexographic printing Global paper & Products fulfillment-able to Distribution network-various Customization & components combine HH printing items production locations to serve Perso

  22. Slide 22: Capabilities overview

    Capabilities overview 12000 51 5 Quality, Safety, Environment and Employees Printing Facilities Ethical standards machines compliance ©2017 Hung Hing Printing Group Ltd. I p. 22

  23. Slide 23: New capabilities

    New capabilities Highcon Euclid III Scodix Ultra Pro & Foil station CT 100 casing-in machine The new generation digital die Digital Enhancement Press that A high performance machine for cutting and creasing machine produces high quality and tangible casing in thin books, CD trays, offer countless ne

  24. Slide 24: Care about Environment

    Care about Environment At Hung Hing, we are conscious about the earth and its environment and protecting it is our duty by utilizing environment friendly materials and processes. ©2017 Hung Hing Printing Group Ltd.

  25. Slide 25: Green Manufacturing

    Green Manufacturing Soy ink Clean Energy Soy-based ink is more environmentally Solar energy is used to friendly, might provide provide hot water more accurate colors, supply to our and makes it easier to dormitories. recycle paper. Recycle We recycle all waste Energy Efficiency materials such as Rep

  26. Slide 26: We care about the environment

    We care about the environment FSC Forest Stewardship Council - Chain of Custody to ensure paper originates from well- managed Forest since 2007 PEFC In year 2017, we ISO14001 Programme for the consumed over 70,685 International Standard in Endorsement of Forest Tons FSC and PEFC certified environmen

  27. Slide 27: We care about people

    We care about people Caring Company We participated in Caring Company program since 2006 ICTI-Care International Council of Toy Industries– Care We care about our Scholarship program, an ethical employees, customers and standard adopted by toy We support students industries worldwide community , our

  28. Slide 28: We care about our products

    We care about our products GMI EN71 Our raw materials and Graphic Measures International Ltd, an approach European toy products comply with adopted by some large retailing companies to monitor safety and measure the quality CNAS international safety standards. performance of packaging PSA standard s

  29. Slide 29: Summary

    Summary Founded in 1950 NOW in Hong Kong World’s leading provider of comprehensive, one-stop printing and packaging solutions. Listed on the Hong Kong factories in Hong Kong, Stock Exchange in 1992 (SEHK 450) 5 Shenzhen, Zhongshan, Heshan, Wuxi. Workforce Annual Sales Revenue Production floor space

  30. Slide 30: Disclaimer

    Disclaimer The presentation is prepared by Hung Hing Printing Group Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment deci

  31. Slide 31: Thank you.

    Thank you. ©2017 Hung Hing Printing Group Ltd. I p. 31

Hung Hing Printing Group — FY2017 Earnings Presentation on 6ix