CK Asset Holdings Limited · HKEX:1113
CK Asset — Cheung Kong Property Holdings — SPAC Merger (May 2015)
35 slides from CK Asset's SPAC merger presentation, May 11, 2015
Slide 1: HKEX announcement: Investor Presentation
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in relia
Slide 2: General
GENERAL Shareholders and holders of other securities of either CKH Holdings or Hutchison, and potential investors in the securities of either CKH Holdings or Hutchison, should note that the Merger Proposal, the Spin-off Proposal and the transactions thereunder are subject to, among other things, com
Slide 3: Directors' responsibility statement
As at the date of this announcement, the Hutchison Directors are: Mr. Li Ka-shing (Chairman), Mr. Li Tzar Kuoi, Victor (Deputy Chairman), Mr. Fok Kin Ning, Canning, Mrs. Chow Woo Mo Fong, Susan, Mr. Frank John Sixt, Mr. Lai Kai Ming, Dominic and Mr. Kam Hing Lam as executive Directors; Mr. Lee Yeh K
Slide 4: Cheung Kong Property Holdings Limited Investor Presentation
Cheung Kong Property Holdings Limited Investor Presentation 11 May 2015 This presentation is for information purposes only and is not an offer to issue or sell, or an invitation of an offer to acquire, purchase or subscribe for, any securities in any jurisdiction. This presentation should be read su
Slide 5: Overview of Cheung Kong Property Holdings Limited
Overview of Cheung Kong Property Holdings Limited
Slide 6: Overview of CK Property
Overview of CK Property ü Development land bank: c.15.8m sq.m.(1) One of Hong Kong’s ü Investment property GFA: c.1.6m sq.m.(1) largest property ü Own and / or manage over 14,600 hotel rooms(1)(2) developers ü Manage c.21.0m sq.m. of properties in Hong Kong and the PRC(1) ü Sponsor of three listed R
Slide 7: Simplified Shareholding Structure and Property Interests
Simplified Shareholding Structure and Property Interests Other Eligible CKH Holdings Other Eligible Hutchison Trust and Li Family Shareholders(1) Shareholders(1) 33.95% 30.15% 35.90% CK Property (Headquartered in HK and listed on SEHK)(2) (Cayman incorporated) Interests in Development Investment Hot
Slide 8: Financial Highlights
Financial Highlights Turnover Cheung Kong Property Group Hutchison Property Group CK Property Pro Forma 46.6 31.0 32.3 31.0 7.0 21.9 11.8 15.3 18.0 13.7 11.8 15.2 19.2 24.0 6.8 17.0 6.2 6.7 6.9 (1) 2012 2013 2014 2012 2013 2014 PF 2014 18.0 21.9 13.7 Group turnover (HK$bn) 11.8 6.2 15.2 6.7 Share of
Slide 9: Investment Highlights
Investment Highlights
Slide 10: Key Investment Highlights
Key Investment Highlights One of Hong Kong’s Largest Property Developers with a Proven Track Record in 1 Hong Kong and the PRC 2 Diversified Business Mix 3 Strong Recurring Income from Extensive Asset Portfolio 4 Focus on Optimizing Land Bank to Balance Stability and Growth 5 Disciplined Investment
Slide 11: Diversified Property Portfolio
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC Diversified Property Portfolio Total property valuation = HK$420bn(1) Breakdown of portfolio valuation by asset class Breakdown of portfolio valuation by geography 3% 16% Development properties (c.HK$231bn) H
Slide 12: Development Property Portfolio
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC Development Property Portfolio Development properties overview Subsidiaries – Hong Kong – Residential ü • One of Hong Kong’s largest property developers 2014 PF(1) − Long and successful track record of over 4
Slide 13: Selected Hong Kong Development Property Highlights
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC Selected Hong Kong Development Property Highlights Development right Kowloon Inland Lot Property name 1 Inland Lot No. 8949, 2 in West Rail Tsuen 3 Inland Lot No. 8920, 4 No. 11125, Argyle 5 Stars by the Harb
Slide 14: The PRC Development Properties
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC The PRC Development Properties 1 21 20 19 18 Xi’an Beijing Tianjin(1) Changchun Dalian 511,064 sq.m. 843,927 sq.m. 149,759 sq.m. 534,743 sq.m. 1,261,138 sq.m. 17 2 Qingdao Chengdu 706,705 sq.m. 1,955,926 sq.m
Slide 15: Investment Property Portfolio
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC Investment Property Portfolio Investment properties overview Investment properties key operating metrics ü• Diversified investment property portfolio 2014 PF(1) Average rental rate(5) (HK$/sq.m.) − Comprising
Slide 16: Selected Hong Kong Investment Property Highlights
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC Selected Hong Kong Investment Property Highlights Wonderful Worlds Hutchison Property name 1 Cheung Kong Center 2 The Center 3 1881 Heritage 4 of Whampoa 5 Logistics Centre • Flagship commercial complex • An
Slide 17: Hotel and Serviced Suite Portfolio
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC Hotel and Serviced Suite Portfolio Hotels and serviced suites overview Hotels and serviced suites key operating metrics ü• One of the largest (1) owner-operators of hotels within 2014 PF(1) RevPAR (HK$)(5) Ho
Slide 18: Hong Kong Hotel and Serviced Suite Portfolio
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC Hong Kong Hotel and Serviced Suite Portfolio 1 14 13 12 11 Harbourview Horizon The Apex Horizon Rambler Garden Hotel Rambler Oasis Hotel Harbour Plaza AII-Suite Hotel 8 Degrees 2 10 Harbourfront Horizon Horiz
Slide 19: Selected Hong Kong Hotel and Serviced Suite Highlights
1 One of Hong Kong’s Largest Developers with a Proven Track Record in Hong Kong and the PRC Selected Hong Kong Hotel and Serviced Suite Highlights Hotels and serviced suites(1) Harbourview Harbourfront Property Horizon Horizon The Kowloon Harbour Plaza Harbour Grand Harbour Grand 1 2 3 4 5 6 name Al
Slide 20: Diversified Business Mix: Property Developer with Diverse Capabilities
2 Diversified Business Mix Property Developer with Diverse Capabilities • Experience across different asset classes • Geographic diversification • Active and prudent land bank strategy • In-house design & construction 1881 Heritage (Hong Kong) • Sponsored • In-house sales Harbourfront Horizon Hotel
Slide 21: Business and Geographical Diversification
2 Diversified Business Mix Business and Geographical Diversification 2014 pro forma turnover Total pro forma turnover in 2014: c.HK$46.6bn 1% 5% 1% 12% Property sales (HK$33.7bn) Hong Kong (HK$30.8bn) 15% Property rental (HK$6.8bn) 28% The PRC (HK$13.1bn) By By Type Geography Singapore (HK$2.4bn) Ho
Slide 22: Flexibility to Undertake Large-Scale Projects
2 Diversified Business Mix Flexibility to Undertake Large-Scale Projects Long-term relationship with different business partners, including: Financial strength and in-house capabilities in • MTRC planning, design, marketing, sales and other aspects • Urban Renewal Authority • Nan Fung Group Ability
Slide 23: Diversified Recurring Income
3 Strong Recurring Income from Extensive Asset Portfolio Diversified Recurring Income Property rental Hotels and serviced suites Investment in listed REITs The Hui Xian Fortune Prosperity Office Retail Industrial Hong Kong The PRC Bahamas REIT REIT REIT • 2014 PF turnover: HK$6,821m • 2014 PF turnov
Slide 24: Property Rental
3 Strong Recurring Income from Extensive Asset Portfolio Property Rental GFA/ Valuation from different segments of investment properties Turnover from different segments of investment properties Office Valuation = HK$123.3bn(1) (HK$ m) 3,040 2,503 2,813 2,101 2,264 3% 1,851 Office (HK$65.9bn)(2) 652
Slide 25: Hotels and Serviced Suites
3 Strong Recurring Income from Extensive Asset Portfolio Hotels and Serviced Suites ü Robust operating performance Large scale of portfolio Hotels under Cheung Kong One of the largest owner-operators of hotels in Hong Kong(1)(2) 90% 90% 89% • Hong Kong: ‒ 10 hotels and 4 serviced suites with 12,652
Slide 26: Asset Enhancement Programmes
3 Strong Recurring Income from Extensive Asset Portfolio Asset Enhancement Programmes Key enhancements in Harbour Grand Kowloon Other recent enhancement initiatives Harbourview Horizon All-Suite Hotel 2016 Existing hotel rooms are expected 2014 Commenced the replacement of the air- to undergo renova
Slide 27: Investment in Listed REITs
3 Strong Recurring Income from Extensive Asset Portfolio Investment in Listed REITs Office and retail properties and Office, retail and industrial Focus Retail properties hotels and serviced suites properties Beijing Oriental Plaza and 18 private housing estate retail Current asset portfolio 8 prope
Slide 28: Land Bank Strategy
4 Focus on Optimising Land Bank to Balance Stability and Growth Land Bank Strategy Land acquisition strategy Continue seeking and responding to land 1 acquisition opportunities with good development potential at a reasonable cost 1% 2% 5% HK (0.8m sq.m.) Leverage on operational advantages and 2 supe
Slide 29: Optimised Capital Structure in Place
5 Disciplined Investment Approach and Prudent Financial Management Optimised Capital Structure in Place Pro forma credit profile Based on pro forma CK Property • HK$5.3bn of short-term project level debt (HK$ bn except percentages) (as at 31 December 2014) Total Debt(1) 71.8 • HK$11.5bn of long-term
Slide 30: Dedicated Professional Management Team
6 Highly Experienced Management and Robust Corporate Governance Dedicated Professional Management Team Mr. LI Ka-shing Mr. LI Tzar Kuoi, Victor Chairman & Executive Director Managing Director, Deputy Chairman & Executive Director Mr. Li is the founder of the Cheung Kong Group. He has been the Chairm
Slide 31: Appendix
Appendix
Slide 32: Diversified Sources of Turnover
Diversified Sources of Turnover Turnover breakdown by operating activities (HK$bn) 46.6 65.4% 47.4% 69.5% 22.4% 49.8% 0.0% 38.2% 32.3 31.0 31.0 1.1% 3.9% 1.2% 3.7% 1.7% 4.9% 1.2% 21.9 7.6% 18.0 12.3% 7.3% 10.0% 7.1% 16.2% 11.9% 13.7 6.0% 18.4% 6.1% 16.8% 6.2% 29.1% 14.6% 47.1% 0.0% 38.0% 0.0% 62.6%
Slide 33: EBIT by Operating Activities
EBIT by Operating Activities EBIT(1) and EBIT margin by operating activities (including share of results from joint ventures and associates) (HK$bn) 42.8% 58.4% 42.5% 48.9% 38.8% 49.4% 40.7% 19.0 1.2% 0.4% 1.3% 13.7 0.1% 1.8% (0.6%) 0.9% 13.3 12.0 10.5 10.7 9.3% 8.9% 9.3% 8.8% 10.2% 14.0% 11.5% 6.8
Slide 34: Reconciliation of the Net Book Value of the Properties
Reconciliation of the Net Book Value of the Properties Attributable gross valuation (HK$bn) 145 (4) 4 104 1 443 3 420 10 78 299 73 33 1 116 73 Stock of Investment Hotel and Leasehold land CKP JV Combined net Property Net changes in Valuation Gross valuation Attributable (2) properties properties ser
Slide 35: Disclaimer
Disclaimer This presentation is for information purposes only and is not an offer to issue or sell, or an invitation of an offer to acquire, purchase or subscribe for, any securities or a solicitation of any vote or approval in any jurisdiction. This presentation should be read subject to, and in co
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