Slide 1: Y2017 Final Results
Y2017 Final Results 16 March 2018
Slide 2: Disclaimer
DISCLAIMER The information in this presentation is for personal, non-commercial reference and general information purposes only and should not be relied upon for investment decision purposes. The information in this presentation, including without limitation any stock price, market data information,
Slide 3: Highlights
HIGHLIGHTS HONG KONG PROPERTY Total Contracted Sales HKD 9.3 bn Total Saleable Area Sold Approx. 405,000 sf Key Properties Sold Mantin Heights, The Bloomsway New Investment Property Resiglow in Happy Valley (7/2017) Land Acquisition Wong Chuk Hang Station Package Two Property Development (
Slide 4: Financial Results Overview
FINANCIAL RESULTS OVERVIEW (HKD mm) FY2017 FY2016 % Change Turnover 35,548 12,991 +174% Gross profit 9,745 5,856 +66% Gross profit margin (%) 27% 45% -18% Share of results of associates and joint ventures 2,060 1,801 +14% Profit attributable to shareholders - Before taking into account the net incre
Slide 5: Turnover Analysis
TURNOVER ANALYSIS (HKD mm) FY 2017 % Weighting FY 2016 % Weighting % Change Revenue from Property Sales * - Hong Kong 20,626 58% 549 4% +3,657% - PRC 8,463 24% 6,655 52% +27% 29,089 82% 7,204 56% +304% Revenue from Property Rental - Hong Kong 1,097 3% 1,058 8% +4% - PRC 3,444 10% 2,995 23% +15% 4,54
Slide 6: Gross Profit Analysis
GROSS PROFIT ANALYSIS (HKD mm) FY 2017 % Weighting FY 2016 % Weighting % Change Non-recurrent Gross Profit Property Sales 5,749 59% 2,463 42% +133% Recurrent Gross Profit Property Rental 3,587 37% 3,215 55% +12% Hotel Operations 409 4% 178 3% +130% Total Recurrent Gross Profit 3,996 41% 3,393 58% +1
Slide 7: Financial Position
FINANCIAL POSITION As of As of (HKD mm) Dec 31, 2017 Dec 31, 2016 % Change Total Debt 38,022 45,333 -16% Less: Cash and bank balances (13,748) (16,481) -17% Net Debt 24,274 28,852 -16% Undrawn bank loan facilities 11,665 9,287 +26% NAV 94,349 82,744 +14% Net debt to total equity 22.5% 30.3% -7.8% No
Slide 8: Debt Maturity Profile as of Dec 31, 2017
DEBT MATURITY PROFILE AS OF DEC 31, 2017 Total Debt : HK$38,022 mm 10,000 23% 23% 9,000 22% 21% Total: 8,040 8,000 2,337 7,000 6,000 (HKD mm) 5,000 8,903 8,665 11% 4,000 8,264 3,000 5,703 4,150 2,000 1,000 0 Within 1 Year Within 2 Years Within 3 Years Within 4 Years Within 5 Years Bank Loans Fixed R
Slide 9: PRC Property Division
PRC PROPERTY DIVISION 9
Slide 10: PRC Property Division – Financial Results Overview
PRC PROPERTY DIVISION – FINANCIAL RESULTS OVERVIEW (HKD mm) FY 2017 FY 2016 % Change Turnover Property sales revenue excluding investment properties 8,463 6,655 +27% Property rental 3,444 2,995 +15% Hotel 1,918 1,734 +11% Total 13,825 11,384 +21% Gross profit Property sales 2,659 2,308 +15% Property
Slide 11: PRC Property Division – Investment Property Portfolio and Hotel
PRC PROPERTY DIVISION – INVESTMENT PROPERTY PORTFOLIO AND HOTEL Investment Property Portfolio in Mainland China as at 31 Dec 2017:- ('000 sq ft) Beijing Shanghai Shenzhen Tianjin Hangzhou Total Office 711 1,436 1,552 - 100 3,799 Commercial 98 1,096 104 428 812 2,538 Apartment 277 774 - - - 1,051 Tot
Slide 12: PRC Property Division – Investment Property Portfolio and Hotel (Cont'd)
PRC PROPERTY DIVISION – INVESTMENT PROPERTY PORTFOLIO AND HOTEL (Cont’d) Detailed occupancy rates of major investment properties as at 31 Dec 2017:- As at As at 31 Dec 2017 31 Dec 2016 Beijing Kerry Centre - Serviced Apartment 96% 97% - Office 98% 98% - Retail 94% 98% - Average 97% 98% Jing An Kerry
Slide 13: PRC Property Division – Major Properties Under Development
PRC PROPERTY DIVISION – MAJOR PROPERTIES UNDER DEVELOPMENT Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) MAJOR MIXED-USE DEVELOPMENT 1 Shenyang Kerry Centre Shenyang R/O/C Ph II – Residential: Mechanical & engineering, Ph II – In 60 5,309
Slide 14: PRC Property Division – Major Properties Under Development (Cont'd)
PRC PROPERTY DIVISION – MAJOR PROPERTIES UNDER DEVELOPMENT (Cont’d) Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) PRIMARILY FOR SALE PROPERTIES 9 The Metropolis – Arcadia Chengdu R Completion verification in progress 1H 2018 55 143,599 Co
Slide 15: Hong Kong Property Division
HONG KONG PROPERTY DIVISION 15
Slide 16: Hong Kong Property Division – Financial Results Overview
HONG KONG PROPERTY DIVISION – FINANCIAL RESULTS OVERVIEW (HKD mm) FY 2017 FY 2016 % Change Turnover Property sales revenue 20,626 549 +3,657% Property rental 1,097 1,058 +4% Total 21,723 1,607 +1,252% Gross profit Property sales 3,090 155 +1,894% Property rental 874 834 +5% Total 3,964 989 +301% Gro
Slide 17: Hong Kong Property Division – Investment Property Portfolio
HONG KONG PROPERTY DIVISION – INVESTMENT PROPERTY PORTFOLIO Investment Property Portfolio as at 31 Dec 2017:- Total GFA ('000 sq ft) Apartment 803 Commercial 1,219 Office 841 Total GFA 2,863 Occupancy rates of investment property portfolio as at 31 Dec 2017:- Occupancy rate as at 31 Dec 2017 31 Dec
Slide 18: Hong Kong Property Division – Major Properties Under Development
HONG KONG PROPERTY DIVISION – MAJOR PROPERTIES UNDER DEVELOPMENT Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA* (%) (s.f.) FOR SALE PROPERTIES 1 Beacon Hill Project (NKIL 6532) Beacon Hill R Superstructure work in 2H 2018 100 116,380 progress 2 Beacon Hill P
Slide 19: Outlook
Outlook 19
Slide 20: Outlook
OUTLOOK • Our strategy remains to grow our recurrent income base by expanding the portfolio of iconic mixed- use developments in the CBDs of major metropolises in Mainland China. This is in line with our goal of delivering steady returns over the long term. • Our group will seek opportunities to rep
Slide 21: Thank You
THANK YOU 21
Slide 22: Appendix
APPENDIX 22
Slide 23: Underlying Profit
UNDERLYING PROFIT (HKD mm) FY 2017 FY 2016 % Change Profit attributable to the shareholders 9,242 6,537 +41% Fair value change of investment properties, net of tax Increase in fair value of investment properties 1,934 3,244 -40% Effect of corresponding deferred tax charges (74) (643) +88% Share of i