Hysan Development Co., Ltd. · HKEX:14
Hysan Development — FY2021 Earnings Presentation
35 slides from Hysan Development's earnings presentation, Feb 24, 2022
Slide 1: 2021 Annual Results Analyst Briefing
2021 ANNUAL RESULTS ANALYST BRIEFING Hysan Development Company Limited 24 February 2022 1
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: Keynote Address
Keynote Address Hysan Development Chairman Ms. Irene Lee 3
Slide 4: 2021 was a milestone year for Hysan
2021 was a milestone year for Hysan 4
Slide 5: Connectivity, Flex Business, Residential, Medical & Health
GBA Flex Business Lee Gardens with IWG Shanghai Connectivity Lee Gardens HK Caroline Hill Road Project Residential Development Medical & Health & Sales New Frontier 5
Slide 6: Our 2021 Performance: Caroline Hill Road Project tender
Our 2021 Performance Successful tender in May 2021 for Caroline Hill Road Project which : • Significantly expands our core portfolio • Creates new opportunities for the transformation of Lee Gardens 6
Slide 7: Strategic pillars for a diversified, risk adjusted portfolio
GBA Flex Business with IWG Lee Gardens Shanghai We identified strategic pillars to deliver a more balanced, diversified, risk adjusted and complementary portfolio Residential Development & Sales Medical & Health - New Frontier for medium to long term 7
Slide 8: Our 2021 Performance
Our 2021 Performance Proactive Management of Leases Results satisfactory taking into consideration COVID backdrop and Dedicated Property Management other economic and geopolitical uncertainties Inclusive Community Curation 8
Slide 9: Our Support for the Community During the Pandemic
Our Support for the Community During the Pandemic Top priority is to defeat the virus and support the community ➢ Dynamic and multi-faceted solutions in support of our tenants In 2021 ➢ Provided for free 1000+ medical-grade air purifiers to our F&B and service tenants ➢ 99% of our staff members rece
Slide 10: The 5th Wave
Our Support for the Community During the Pandemic The 5th Wave ➢ Set up HK’s first Satellite Community Vaccination Centre (Govt and private sector in cooperation) at Leighton Centre – provides 1,300 doses for the public daily – took <1 month from drawing board to start of operation ➢ In discussion w
Slide 11: Business & Operation Review
Business & Operation Review By Mr. Ricky Lui Executive Director & Chief Operating Officer 11
Slide 12: 2021 Annual Results: Group Financial Performance
2021 Annual Results Group Financial Performance Revenue Recurring Underlying Profits DPS HK$ 3,608M (-2.7%) HK$ 2,330M (-2.8%) HK$ 1.44 (flat) By Sector Revenue (HK$M) Year-end Occupancy 3,895.5 3,887.7 3,879.9 3,872.1 3,864.3 3,856.5 3,848.8 3,841.0 3,833.2 3,825.4 3,817.6 3,809.8 3,802.0 3,794.2 3
Slide 13: Office
Office Resilient occupancy Office Tenant Profile by Area (2021 Year-end) (-1%) despite continued trend of office downsizing & hybrid work mode Others 14.6% Banking, Proactive management of leases Marketing Wealth Management Banking & & 2022 expiry area 35% already committed 2.1% Finance Finance Reta
Slide 14: Retail
Retail Hong Kong & Hysan Tenant Retail Sales NEAR FULL 99% (2021, YoY) OCCUPANCY Hong Hysan Type of retail outlet Kong (estimated) as at 2021 year-end Clothing, footwear and allied +21% +31% products Food & Beverages +17% +41% HK retail sales generally improved, albeit minimal tourist spending Jewel
Slide 15: Marketing Strategy with an O2O Focus
Marketing Strategy with an O2O Focus Strategic marketing campaigns, digital & physical brought impressive traffic to Lee Gardens and drove strong sales Broadened base of VIP members through prominent brand events and collaborations Digital marketing campaign enabled a 24/7 shopping experience “Dine
Slide 16: Residential
Residential Remained under pressure due to the lack of professional expatriates arriving in Hong Kong Flexible leases were offered to customers in 2021 Tenant referral programme to attract new tenants 16
Slide 17: Business & Operation Review: Core Reinforcement
Business & Operation Review Core Reinforcement 17
Slide 18: Caroline Hill Road Project
Caroline Hill Road Project Commercial 1.1 million sf GFA (Expand Lee Gardens by 30%) Lifestyle Park & Greenery 60,000 sf Carparking Spaces 600+ Est. Completion 2026-2027 18
Slide 19: Enhancing Connectivity & Walkability
Enhancing Connectivity & Walkability A FULLY CONNECTED Lee Gardens Area by 2026 SOGO A CURATED WALKABLE JOURNEY from Hysan Place to Carline Hill Road Site HYSAN Approved PLACE Covered Walkway PENNINGTON STREET LEE GARDEN 2 LEE GARDEN 1 LEE GARDEN 5 LEE LEE Approved GARDEN 3 GARDEN 6 Footbridge Syste
Slide 20: Business & Operation Review: Building The Pillars
Business & Operation Review Building The Pillars 20
Slide 21: Lee Gardens Shanghai
LEE GARDENS SHANGHAI Strategic Location - In the Heart of Jing’an 3-minute walk from Shanghai Natural History Museum Station One station away from Nanjing West Road and Dazhongli Grade A commercial area positioning already established Project Particulars c.540,000 sf 24-storey 324 Ready-to-rent Comm
Slide 22: Tai Po Residential Project
TAI PO RESIDENTIAL PROJECT OP Date 1H 2022 Prestige Residences with Magnificent Mountain & Seaview Benefit from the Northern Metropolis Scheme 262 350 Houses & Flats Parking Lots 22
Slide 23: To Kwa Wan URA Residential Project
TO KWA WAN URA RESIDENTIAL PROJECT 25% Stake in Joint Venture with Henderson Land and Empire Holding c.600,000 sq.ft. c.120,000 sq.ft. RESIDENTIAL GFA RETAIL GFA Subject With our successful experience in the curation of Lee Gardens portfolio, Hysan will oversee the design and operation of the retail
Slide 24: GBA Flex Joint Venture with IWG
GBA FLEX JOINT VENTURE WITH IWG Partnering with IWG The top global flexible workspace operator with more than 30 years in the industry 5 Exclusive Operator of all IWG Brands in the GBA GBA economic potential is huge with the PRC government’s policy 2 support and agglomeration of tech ventures and MN
Slide 25: Investment in New Frontier Group
INVESTMENT IN NEW FRONTIER GROUP New Frontier is a leading private healthcare services provider based in China Comprehensive services ranging from private hospital and clinics, post acute facility-based care to home-based care services. The investment provides strategic exposure for Hysan in the fas
Slide 26: Asset-Light Investment Strategy
ASSET-LIGHT INVESTMENT STRATEGY Partner with leaders - Complementary with our property portfolio - Enriching our Smart Community Business Model 26
Slide 27: Business & Operation Review: Sustainability
Business & Operation Review Sustainability 27
Slide 28: Environmental, Social and Governance
Environmental, Social and Governance ESG Ratings Recognition of Hysan’s Sustainable Efforts GRESB: ➢ Grand ESG Award, Best ESG (Environment), ➢ 4-stars Best ESG (Social), Best ESG (Governance) - HKIRA IR Awards 2021 Hang Seng Corporate Sustainability Index: ➢ Most Sustainable Companies/ Organization
Slide 29: Sustainable Finance
Sustainable Finance Green Sustainability – Bonds Linked Loan The Largest Green Loan in Hong Kong HK$ 1.6b HK$ 965m Sustainability – Sustainable HK$ 12.9b Linked Hedge Bonds US$ 125m HK$ 400m Sustainable Finance Transactions to date:* HK$ 16.8b >40% of Total Debts and Facilities *As at 24 Feb 29 2022
Slide 30: Financial Management
Financial Management By Mr. Roger Hao Chief Financial Officer 30
Slide 31: Financial & Capital Management
Financial & Capital Management Shareholders’ Fund HK$ 73.9b (+ 0.3%) NAV per share HK$ 71.4 (+ 0.7%) DPS HK$ 1.44 (flat) 31
Slide 32: Dividend
Dividend Stable & Progressive DPS Track Record DPS (HK cent) 160 144 144 144 144 140 135 137 132 123 120 117 100 95 79 80 60 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 32
Slide 33: Financial & Capital Management: Key Financial Metrics
Financial & Capital Management Key Financial Metrics Net Gearing Effective Interest Rate Debt Maturity Profile as at 31 Dec 2021 (HKD’m) 5,000 11.7% 2.9% 4,672 4,500 Fixed Rate Debt Ratio Average Debt Maturity 4,000 3,790 3,500 2,730 75% 6.1 years 3,000 2,500 Undrawn Committed Facilities 2,166 1,500
Slide 34: Thank You
Thank You 34
Slide 35: 2021 Annual Results Analyst Briefing
2021 ANNUAL RESULTS ANALYST BRIEFING Hysan Development Company Limited 24 February 2022 35
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