Wharf (holdings) Ltd. · HKEX:4
Wharf (holdings) — The Wharf (Holdings) — Investor Presentation (November 2017)
70 slides from Wharf (holdings)'s investor presentation, Nov 10, 2017
Slide 1: Post-Demerger The Wharf (Holdings) Limited Investor Presentation
Post-Demerger The Wharf (Holdings) Limited (Stock Code: 0004.HK) Investor Presentation 10 Nov 2017 1
Slide 2: Wharf to Demerge into Two Listed Sister Companies
Wharf to Demerge into Two Listed Sister Companies 0020.HK 0020.HK 62% 62% 62% Future Wharf REIC 0004.HK 1997.HK Demerger • HK • 6 Strategic Commercial The Wharf (Holdings) Limited – Properties HKIPs 0004.HK – Logistics • Incl. 72% HCDL (0051.HK) • China – IP – DP • Hotel Management 2
Slide 3: Rationale for Demerger
Rationale for Demerger • Clear Strategic & Investment Profiles for Investors (Wharf REIC/ Post-Demerger Wharf Holdings); • Increase Operational & Financial Transparency of Wharf REIC & Post-Demerger Wharf Holdings, Allowing: – Equity Investors to Assess/ Appraise the Performance & Potential – Credit
Slide 4: Demerger Details for Wharf REIC
Demerger Details for Wharf REIC • Listing By Way of Introduction • Distribution in Specie on a 1:1 Basis for Every Wharf Share Held • HKEX Stock Code: 1997.HK • Board Lot: 1,000 (Same as 0004.HK) • Important Dates: – 15 Nov 2017 (Wed): Last Day of Trading in 0004.HK Cum-Entitlement – 16 Nov 2017 (Th
Slide 5: Pro Forma Consolidated Statement of Profit & Loss
Pro Forma Consolidated Statement of Profit & Loss 1H17 Unaudited Pro Forma Consolidated Statement of Profit & Loss Post-Demerger HKD Million Wharf Holdings Wharf REIC Wharf Holdings Group Revenue 17,063 7,517 9,546 Operating Profit 8,553 1,503 6,984 Operating Margin 50.1% 20.0% 73.2% Profit Before T
Slide 6: Pro-forma Balance Sheet
Pro-forma Balance Sheet Unaudited Pro-forma Balance Sheet (as of 30 Jun 2017) Post-Demerger HKD Million Wharf Holdings Wharf REIC Wharf Holdings Non-current Assets 384,271 124,985 259,286 Current Assets 54,213 96,037 4,983 Total Assets 438,484 221,022 264,269 Non-current Liabilities (54,064) (49,736
Slide 7: Post-Demerger Wharf Holdings Initial Capital Structure
Post-Demerger Wharf Holdings Initial Capital Structure As of 30 Jun 2017 Unaudited Pro-forma Financial Position (HKD Million) Long-term Bank Loans 39,141 Short-term Bank Loans 9,181 Less: Bank Deposits and Cash 73,531 Net Cash 25,209 Plus: Non-recourse Debts to Post-Demerger Wharf Holdings* 7,594 Ow
Slide 8: A HK-Based Company with Balanced Business Strategy
A HK-Based Company with Balanced Business Strategy 8
Slide 9: A HK-Based Company with Balanced Business Strategy
A HK-Based Company with Balanced Business Strategy • A HK Blue Chip Company with Over 130 Years of History • Mainland China – Allocate ≤50% of Total Equity to China Properties – Use Suitable Debt to Meet Additional Funding Needs • Non-Mainland China – Primary Preference – HK – No Conflict with Wharf
Slide 10: A HK-Based Company with Balanced Business Strategy
A HK-Based Company with Balanced Business Strategy • Valuable Portfolio in HK – Properties: Peak, Kowloon East Waterfront – Logistics: Rare Critical Mass Through MTL & HACTL • Strong Financial Position to Make New Investments – Extension of Current Portfolio in Property & Logistics Sectors – May Als
Slide 11: A HK-Based Company with Balanced Business Strategy
A HK-Based Company with Balanced Business Strategy China • Equity Allocation ≤50% of Group Total • No Interest to Compete with Mainland Developers in terms of Scale • Remain Selective in City & Nature of Projects for both DP & IP • IP Quality & Productivity, with Growth Prospects 11
Slide 12: Agenda: HK Properties
Agenda HK Properties Logistics China IP China DP Hotel Management 12
Slide 13: Summary of HK Properties
Summary of HK Properties Portfolio Usage Status Locations Attributable GFA (s.f.) 1. Peak Portfolio Residential Sales Mount Nicholson (50%-JV) 81,000^ Lease Chelsea Court 43,000 Strawberry Hill 13,000 Redevelopment 1 Plantation Road 91,000 11 Plantation Road 46,000 77 Peak Road 42,000 2. Kowloon Eas
Slide 14: Peak Portfolio
Peak Portfolio | WHARF
Slide 15: Mount Nicholson – Symbol of Luxury & Scarcity
Mount Nicholson – Symbol of Luxury & Scarcity The Ultra-Luxury Residence On the Peak 15
Slide 16: Mount Nicholson – Setting a New Bar for Luxury Living
Mount Nicholson – Setting a New Bar for Luxury Living 50%-Owned Mount Nicholson Launch Date 1Q 2016 19 Houses (6,000-10,000 s.f) Product Type 48 Apartments (4,200-4,500 s.f) • Stunning View over Victoria Harbour • 50:50 JV Development with Nan Fung Group • Project’s Total GFA: 162,000 s.f. (attribut
Slide 17: Mount Nicholson – Remarkable Luxury Residential Sales
Mount Nicholson – Remarkable Luxury Residential Sales Accumulated Sales* 11 Houses 22 Apartments $93,000 psf $75,000 psf (Average) (Average) House 7 Total Proceeds: $15.5B House 3 • House 1 & 7 Ranked among Top 3 of 2017 Top House 1 Residential Sales Worldwide** • House 3 Recently Sold to Set a New
Slide 18: Mount Nicholson – Selective Apartment Units in Tower C & D
Mount Nicholson – Selective Apartment Units in Tower C & D To be Launched in 4Q17 18
Slide 19: Other Peak Properties – Leasing
Other Peak Properties – Leasing • Peak Properties for Leasing – Chelsea Court (Total GFA: 43,000 s.f) Chelsea Court – Strawberry Hill (Total GFA: 13,000 s.f) • Luxurious Residences Nestled on the Peak with Limited Supply Strawberry Hill 19
Slide 20: Other Peak Properties – Under Redevelopment
Other Peak Properties – Under Redevelopment • Peak Properties Under Redevelopment (Investment Properties) 1 Plantation Road – 1 Plantation Road Total GFA: 91,000 s.f – 11 Plantation Road 11 Plantation Road Total GFA: 46,000 s.f – 77 Peak Road • Value to be Unlocked in Medium to Longer Term 77 Peak R
Slide 21: Kowloon East Waterfront Portfolio
Kowloon East Waterfront Portfolio 21
Slide 22: “Energizing Kowloon East”
“Energizing Kowloon East” • Transforming Kowloon East into Another Premier CBD of HK to Support Economic Growth & Strengthen Global Competitiveness • Focusing on Enhancing Connectivity, Branding, Design and Diversity • Comprising Kai Tak Development, Kwun Tong and Kowloon Bay Business Areas (Total A
Slide 23: Thriving “Kowloon East Waterfront Portfolio” in Vibrant CBD2
Thriving “Kowloon East Waterfront Portfolio” in Vibrant CBD2 • Massive Potential from “Energizing Kowloon East” • Enjoying Compelling Harbour View • Spanning a 500m Coastline Kowloon East Waterfront Portfolio 8 Bay East (Former Wharf T&T Square)* Kowloon Godown (Pending Redevelopment) *The Sale is E
Slide 24: 8 Bay East – Largest En-bloc Office Transaction in Kowloon
8 Bay East – Largest En-bloc Office Transaction in Kowloon On 11 Oct 2017, a SPA was Entered to Dispose of the Wholly-owned Subsidiary that Owns the 8 Bay East Project. 8 Bay East Transaction Details Total GFA 596,000 s.f Total Consideration $9B Expected Disposal Gain $4.5B Expected Sale Completion
Slide 25: 8 Bay East – Green Workplace
8 Bay East – Green Workplace • Awarded US LEED® Platinum Pre-Certification, the Highest Standard • Achieved HK BEAM Plus Gold Pre-Certification • Maximized Greenery Area to 20% by Utilizing Roof, Vertical Wall & Podium • Large-Scale Photovoltaic (PV) Panels System Installed at the Top Roof to Genera
Slide 26: 8 Bay East – Design Excellence
8 Bay East – Design Excellence • Sleek Designed 25-storey Office Tower, Providing a Total GFA of 596,000 s.f • Grand Entrance Lobby with ~7.3m Clear Ceiling Height • An Impressive Covered Vehicle Drop-Off Areas Adding a Grand Sense of Arrival • Large Floor Plate of ~30,000 s.f Per Floor & Generous ~
Slide 27: Kowloon Godown (Pending Redevelopment)
Kowloon Godown (Pending Redevelopment) • Existing Operating Use GFA 1.03M s.f • General Building Plan for Open Yard Approved in Feb 2016 • Lease Modification for Commercial Scheme at Open Yard & Kowloon Godown Sites Submitted in Jun/ Aug 2017 • In Parallel, General Building Plan for Godown Revitaliz
Slide 28: Yau Tong Bay (15% JV)
Yau Tong Bay (15% JV) • 4M s.f. GFA with 6,300 Residential Units • Panoramic Victoria Harbour view • Close Proximity to MTR Station • General Building Plan Approved in July 2017 • Lease Modification Underway • Co-Project Manager with Henderson Land 28
Slide 29: Agenda: Logistics
Agenda HK Properties Logistics China IP China DP Hotel Management 29
Slide 30: Modern Terminals – First Container Terminal in HK
Modern Terminals – First Container Terminal in HK • Focusing on HK & Shenzhen • HK: 7 Berths in Kwai Tsing – Length of Berths 2.43 km – Total Land Area 92.61 ha (228.75 acres) – Annual Capacity Over 7M TEUs • Shenzhen: 65%-owned Dachan Bay, 20%- owned Shekou Container Terminals & 8%- owned Chiwan Co
Slide 31: HK Terminal – Major Revenue Contributor of MTL
HK Terminal – Major Revenue Contributor of MTL 1H17 Total Throughput (Million TEUs) HK 2.7 +17% DCB (65%-owned) 0.6# -11% SCT (20%-owned) 2.7# +8% TC* 1.2# +11% Total 7.2 +11% Market Throughput South China +7% Kwai Tsing +11% * Up to Disposal in Jun 2017, 25.5% in Phase 1 & 35% in Phase 2 # Total Th
Slide 32: MTL – Cash Cow
MTL – Cash Cow Consolidated Revenue & Operating Profit (HK$ Million) 3,206 • 1H17 Consolidated Revenue $1,361M (+10%) 2,739 2,635 • Consolidated Operating Profit $349M (+20%) • Sold Remaining Stake in Taicang in Jun 1,034 2017; The Remaining Disposal Gain 676 710 Booked in 1H17 2014 2015 2016 Revenu
Slide 33: Hong Kong Air Cargo Terminals Ltd (HACTL)
Hong Kong Air Cargo Terminals Ltd (HACTL) • HK is One of the World’s Busiest Airports for International Cargo. • HACTL, a Leading Air Cargo Terminal Operator in Hong Kong, has the Capacity to Handle Cargo up to 3.5M Tonnes per year. • HACTL is a 20.8% Associate of the Group. 33
Slide 34: Agenda: China IP
Agenda HK Properties Logistics China IP China DP Hotel Management 34
Slide 35: First Series – Times Square
First Series – Times Square Total GFA * Operating IPs Project Nature Year of Completion (s.m.) Times Square Chongqing Times Square** Retail 55,000 2004 Dalian Times Square** Retail 17,000 2008 Marco Polo Wuhan** Hotel 38,000 2008 Shanghai IPs Shanghai Times Square Retail/Office/S.A# 90,000 1999 Shan
Slide 36: Current Series – IFS & Times Outlets
Current Series – IFS & Times Outlets Total GFA * Operating/ New IPs Project Nature Year of Completion (s.m.) Mixed-use IFS Complexes (Critical Mass) Chengdu IFS Retail/Office/S.A#/ Hotel 610,000 2014-2016 Chongqing IFS** Retail/Office/Hotel 381,000 2017 Changsha IFS Retail/Office/Hotel 730,000 2018-
Slide 37: Chengdu International Finance Square “CDIFS”
Chengdu International Finance Square “CDIFS” 37
Slide 38: CDIFS – The City’s Busiest Pedestrian Shopping Area
CDIFS – The City’s Busiest Pedestrian Shopping Area Chunxi Pedestrian Street • The Prime Location in City Centre • At the Intersection of Hongxing Road, Dacisi Road and Beishamao Metro Station Street • Directly Connected to 1st Ring Road Metro Station (Lines 2 CDIFS & 3 Intersect) 2nd Ring Road 3rd
Slide 39: Mixed-use CDIFS – City Within A City
Mixed-use CDIFS – City Within A City Award-winning Trendsetting Landmark in China West 9-Level Retail/ Lifestyle Podium Premium Offices Luxurious IFS Residences Niccolo Chengdu Among the Top in Retail Sales & Attracted a Large Concentration of Among the Most Exclusive Footfall in Western China Mover
Slide 40: CDIFS Mall – Redefining Retail Experience
CDIFS Mall – Redefining Retail Experience • Enviable Location, Critical Mass & High- Exquisite Collection of 300 Premium Brands (Over 100 Debuts in Chengdu) calibre Management • Unmatched Sales Productivity • Sets a Strong Model for CQIFS & CSIFS Malls Entertainment F&B & Lifestyle 17% 19% Top-end 2
Slide 41: CDIFS Mall – Highly Recommended by Our Tenants
CDIFS Mall – Highly Recommended by Our Tenants Comments Comments Comments “Business growth keeps very “Taking a mutually effective “Your marketing campaigns are encouraging and IFS marketing partnership approach, especially wonderful and I am very grateful that direction has been definitely helping
Slide 42: CDIFS Mall – 2017 Key Prestigious Award
CDIFS Mall – 2017 Key Prestigious Award • 2017 ICSC* Asia-Pacific Shopping Center Gold Award (Marketing Positioning & Brand Awareness) • Succeeded ‘2016 VIVA Best-of-the-Best Design & Development Awards’ • ICSC Highly Recognized: – CDIFS’ Efforts to Promote the Internationalization of Chengdu City M
Slide 43: CDIFS Office – Raising the Bar for Future Workplace
CDIFS Office – Raising the Bar for Future Workplace • Top-notch Workplace – 46% Committed • Over 125,000 s.m Leased in 3.5 Years – Encouraging • Rental Rates Achieved among the Highest in CD Our Tenants’ Most Preferred Address The Standard Chartered View The KPMG View “外地同事到成都出差，來到我們的辦公樓和附近的區 域，會驚歎於
Slide 44: Highly Positive Guests’ Responses
Highly Positive Guests’ Responses Niccolo Chengdu IFS Residences • “Excellent Hotel in the heart of a bustling • “It is a pleasure living here.” shopping district” • “It is satisfying to see the staff working • “The location is great, the facilities are harmoniously, respectfully and with cheer well
Slide 45: Chongqing International Finance Square “CQIFS”
Chongqing International Finance Square “CQIFS” 45
Slide 46: CQIFS – Prominent Location in Chongqing’s New CBD
CQIFS – Prominent Location in Chongqing’s New CBD • Strategically Located in Jiangbeizui District (New CBD) • Directly Connected to Light Railway Station (Lines 6 & 9) • Panoramic River View (Jialing River & Yangtze River) CQIFS • Clusters of Renowned Chinese Financial Institutions Nearby • Adjacent
Slide 47: CQIFS – To Mirror CDIFS’s Success
CQIFS – To Mirror CDIFS’s Success 50%-Owned CQIFS • Most Massive Mixed-use Complex in the Retail Hotel District 113,700 s.m 36,800 s.m 10% 30% • Iconic 300m Tower & 4 Other Towers Atop Total Retail Podium 381,000* s.m (100% Level) Office* 230,000 s.m • Unrivalled Shopping, Dining, Lifestyle & 60% Le
Slide 48: CQIFS Mall – Home to World’s Most Promising Brands
CQIFS Mall – Home to World’s Most Promising Brands • Opened on 15 Sep 2017 Diversified Tenant Mix (Selected Brands) • To Offer an Exceptional One-Stop Lifestyle Experience • Over 150 Brands Incl. 80 Int’l Brands & 20 CQ Debuts Mid to High-end Entertainment 21% & Lifestyle 9% F&B 114,000 s.m Top-end
Slide 49: Niccolo Chongqing – Replicate the Success of Niccolo Chengdu
Niccolo Chongqing – Replicate the Success of Niccolo Chengdu • Another Luxury Niccolo Hotel (252 Rooms) in the Mainland • Officially Opened on 8 Sep 2017 • City’s Highest Sky Hotel with Spectacular Views of the City 49
Slide 50: Changsha International Finance Square “CSIFS”
Changsha International Finance Square “CSIFS” 50
Slide 51: CSIFS – Enviable Location in Central China Metropolis
CSIFS – Enviable Location in Central China Metropolis • Most Prime Location (Furong District) in City Centre • At the Intersection of Huangxing Road (One of the Busiest Pedestrian Streets) & Jiefang Road (Financial Street) • Underground Linkage to Wuyi Plaza Station (Interchange of Metro Lines 1 & 2
Slide 52: CSIFS – A New Icon For Changsha
CSIFS – A New Icon For Changsha CSIFS Hotel Retail 85,900 s.m 254,000 s.m 12% 35% • Most Coveted Shopping, Dining, Lifestyle & Total Leisure Destination in Hunan Province 730,000 s.m Office • Proven Management & Execution Capabilities 390,100 s.m 53% • Encouraging Retail Pre-leasing Underlines Total
Slide 53: Agenda: China DP
Agenda HK Properties Logistics China IP China DP Hotel Management 53
Slide 54: China DP Strategies
China DP Strategies • China DP Landbank 3.8M s.m (as of 30 Sep 2017) • Going Forward – Selective Land Purchase to Enhance the Quality of Landbank & Return • Key Target Cities: Beijing, Shanghai, Suzhou & Hangzhou 54
Slide 55: China DP Contracted Sales Trend
China DP Contracted Sales Trend Jan-Sep 2017 Contracted Sales RMB20.1B Contracted Sales (RMB Billion) 7-Yr CAGR: 23.6% 31.4 26.0 20.9 21.5 15.0 12.7 8.8 2010 2011 2012 2013 2014 2015 2016 55
Slide 56: Agenda: Hotel Management
Agenda HK Properties Logistics China IP China DP Hotel Management 56
Slide 57: Hotel Management – Wharf Hotels
Hotel Management – Wharf Hotels Hong Kong China The Philippines Marco Polo 1. Hongkong 4. Shenzhen 11. Manila (Ortigas) 2. Gateway 5. Wuhan* 12. Cebu 3. Prince 6. Xiamen 13. Davao 7. Beijing (Parkside) 8. Changzhou, Jiangsu 9. Foshan (Lingnan Tiandi) 10. Jinjiang, Fujian (福建晋江) Niccolo 1. The Murray
Slide 58: Manages 18 Hotels in 15 Cities in Asia Pacific
Manages 18 Hotels in 15 Cities in Asia Pacific China Beijing Changzhou Suzhou Wuhan Changsha Chengdu Jinjiang Chongqing Xiamen Shenzhen Foshan Hong Kong Manila The Philippines Cebu Davao 58
Slide 59: Hotel Management – Wharf Hotels
Hotel Management – Wharf Hotels Marco Polo Hongkong Hotel Marco Polo Hongkong Hotel The Murray, Hong Kong The Murray, Hong Kong Niccolo Chengdu Niccolo Chongqing 59
Slide 60: Seasoned Board Members
Seasoned Board Members Year Joining Executive Directors Roles and responsibilities Group Mr. Stephen Tin Hoi NG (Chairman & M.D.) 1981 Strategic Planning & Decision Making Mr. Andrew On Kiu CHOW (Deputy Chairman) 2006 China DP Portfolio Ms. Doreen Yuk Fong LEE (Vice Chairman) 1984 IP Portfolio Mr. P
Slide 61: Thank You
Thank You | WHARF
Slide 62: Appendix
Appendix | WHARF
Slide 63: China IP Pipeline – Long-Term Growth
China IP Pipeline – Long-Term Growth Commercial Properties Completion Schedule (’000 s.m) 3,225 Changsha IFS 873 1,043 Changsha Outlets 72 72 72 Wuxi IFS 72 251 251 251 251 214 427 567 567 567 Chongqing IFS* 214 186 186 604 687 762 762 762 762 Chengdu IFS 362 530 530 530 530 530 530 530 Other China
Slide 64: CDIFS – Unmatched Sales Productivity in China West
CDIFS – Unmatched Sales Productivity in China West Retail Sales (RMB Billion) Retail Revenue (RMB Million) Among the Top in China West 633 605 3.85 483 3.3 2.2 2014 2015 2016 2014 2015 2016 Note: Opened in Early 2014 64
Slide 65: CQIFS Mall – Opening Drew Crowds & Media Frenzy
CQIFS Mall – Opening Drew Crowds & Media Frenzy A New City Landmark Blending Luxury, Cosmopolitan and Lifestyle Chongqing Business Paper (Chongqing Shangbao) 15 Sep 2017 Compelling entertainment offerings (The Rink, Palace Cinema, G-Super, Physical) – Enable citizens to enjoy quality living with int
Slide 66: China DP – Selective Land Acquisitions
China DP – Selective Land Acquisitions 9M17 Land Acquisitions Attributable Attributable GFA City Date Consideration Ownership (s.m) (RMB Million) Beijing Sep-17 100,200 6,260 100% Foshan May-17 68,700 701 40% Foshan Sep-17 112,800 807 50% Foshan Sep-17 115,900 1,008 50% Hangzhou Sep-17 29,400 1,097
Slide 67: China DP Land Bank Breakdown by City
China DP Land Bank Breakdown by City Region Key City GFA % Total AV (’000 s.m) (RMB psm) Eastern China Shanghai 183 5% 18,300 Suzhou 579 15% 10,300 Hangzhou 539 14% 12,300 Wuxi 498 13% 2,600 Eastern China Sub-Total: 1,799 47% Western China Chengdu 777 21% 2,400 Chongqing 344 9% 3,600 Western China S
Slide 68: Panda Bond Issuance
Panda Bond Issuance • 1st HK Property Developer to Issue Panda Bonds on the Mainland • 1st Tranche Issued on 12 Oct 2016 • RMB4B (Over-subscribed 3x)/RMB20B • Coupon Rate: 3.1% 68
Slide 69: FAQ for Bondholders
FAQ for Bondholders • Is there any further plan on divestment / spin-off? There is no such plan at the moment. • What is the ownership structure of Post -Demerger Wharf Holdings post spin-off? Wharf is currently a 62%-owned subsidiary of Wheelock & Company Limited (0020.HK). We are not aware of any
Slide 70: End of Presentation
End of Presentation The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK] Disclaimer 1) All information and data are provided for information purposes only. All opinions included herein constitute Wharf’s judgment as of the date hereof and are subject to change without notice. The Group, its subsi
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