Fse Lifestyle Services Limited · HKEX:331
Fse Lifestyle Services — FY2022 Earnings Presentation
34 slides from Fse Lifestyle Services's earnings presentation, September 2022
Slide 1: FY2022 Annual Results Analyst Presentation
FY2022 ANNUAL RESULTS Year Ended to 30 June 2022 ANALYST PRESENTATION September 2022 FSE Lifestyle Services Limited 1
Slide 2: Business Segments
Business Segments FSE Lifestyle Services Limited (Stock code: 331) 100% 100% 100% Property & Facility City Essential E&M Management Services Services Services Waihong Far East Turning Technical Urban Kiu Lok Perfect FSE Engineering General Event Nova Security Majestic Engineering Services Young’s En
Slide 3: Reported earnings dropped 14% to $503M
Reported earnings dropped 14% to $503M Reported Earnings 14% $587M $503M (FY2021) (FY2022) Total dividend per share $0.45* and a dividend payout ratio 41% * Final : $0.241 per share Interim : $0.209 per share FSE Lifestyle Services Limited | 3
Slide 4: Core earnings increased 35% to $415M
Core earnings increased 35% to $415M Core Earnings* 35% $307M $415M (FY2021) (FY2022) * Excluding government grants and non-recurring items $280M $88M (1) Government grants $340M Government grants $88M Non-recurring items: Loss related to laundry business disposal ($46M) One-off professional fees fo
Slide 5: Group turnover increased 8% to $6,967M
Group turnover increased 8% to $6,967M Group Turnover 8% 15% $6,453M $6,967M (FY2021) (FY2022) FSE Lifestyle Services Limited | 5
Slide 6: 23% CAGR EPS FY2017-22 (Reported)
23% CAGR EPS FY2017-22 (Reported) (in HK$) 1.60 1.29 1.20 1.10 0.20 0.76 0.80 0.68 0.43 0.53 0.55 0.11 0.39 0.13 0.16 0.17 0.40 0.30 0.21 0.21 0.18 0.18 0.47 0.18 0.19 0.25 0.23 0.18 - FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Acquisition of Acquisition of Acquisition of Waihong & Urban & Kiu Nova,
Slide 7: Higher Return to Shareholders
Higher Return to Shareholders Total dividend per share since IPO $1.902, representing 69% of IPO price 50% 49% 46% (in HK$) 41% 40% 40% 40% 0.5 0.45 0.45 0.4 0.161 0.241 0.3 0.272 0.211 0.22 0.2 0.144 0.144 0.155 0.119 0.133 0.289 0.081 0.209 0.1 0.094 0.128 0.101 0.074 0.078 0.05 0 6/16 6/17 6/18 6
Slide 8: Growing Dividend Yield FY2016-22
Growing Dividend Yield FY2016-22 % 10.0 9.0 8.9 8.3 8.0 7.0 7.4 7.0 7.4 5.9 6.0 6.2 5.0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Dividend yield FSE Lifestyle Services Limited | 8
Slide 9: 14% CAGR Turnover FY2017-22 (Reported)
14% CAGR Turnover FY2017-22 (Reported) (HK$’M) 8,000 6,967 7,000 6,453 6,000 774 4,927 4,931 4,882 3,616 5,000 1,171 568 4,000 3,700 2,920 2,639 3,000 2,172 1,931 1,993 2,000 3,351 2,759 1,000 2,292 2,142 1,769 1,763 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Acquisition of Acquisition of Acquisiti
Slide 10: 24% CAGR Profit FY2017-22 (Reported)
24% CAGR Profit FY2017-22 (Reported) (HK$’M) 600 587 503 500 88 400 340 310 200 300 48 237 248 73 200 57 78 174 134 93 86 92 82 100 215 87 114 103 87 82 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Acquisition of Acquisition of Acquisition of Waihong & Urban & Kiu Nova, HKIL & NCL Lok GS First half S
Slide 11: Segment AOP – FY2022
Segment AOP* – FY2022 Non-E&M Segments contribute 67% AOP and growing Property & Facility City Essential E&M Management 綜合生活 機電工程 物業及設施管理 (HK$’M) $202M (40%) 200 Environmental Solutions $173M (33%) Nova 150 $136M (27%) General Security IPM /Perfect Event Kiu Lok FSEE 100 Turning Tech. / Far East Urb
Slide 12: Property & Facility Management
Property & Facility Management Over Government Property Agency HKU Senior Staff Quarters 300 property and facility management contracts Convention Plaza Link Carparks FSE Lifestyle Services Limited | 12
Slide 13: Segment Highlight: Property & Facility Management
Segment Highlight: Property & Facility Management Turnover Profit (HK$M) (HK$M) 700 140 650 130 600 696 120 137 658 134 550 110 500 100 FY2021 FY2022 FY2021 FY2022 FSE Lifestyle Services Limited | 13
Slide 14: (i) Cleaning - Waihong
City Essential Services (i) Cleaning - Waihong Over 11 SKIES Express Rail Link 280 cleaning service contracts Sogo Department Store Department of Health Office Tsim Sha Tsui New Territories East Region FSE Lifestyle Services Limited | 14
Slide 15: (i) Cleaning - Waihong Turnover
City Essential Services (i) Cleaning - Waihong Turnover (HK$’M) ↑12% 1,400 1,300 Sogo, TST 1,200 1,100 1,000 1,409 1,263 900 800 700 600 Happy Valley Clubhouses FY2021 FY2022 FSE Lifestyle Services Limited | 15
Slide 16: (ii) Technical Support & Maintenance - Far East/Turning
City Essential Services (ii) Technical Support & Maintenance - Far East/Turning Over EMSD Venetian, Macao 2,300 technical support and maintenance service contracts YMCA Educational Institutions FSE Lifestyle Services Limited | 16
Slide 17: (ii) Technical Support & Maintenance Turnover
City Essential Services (ii) Technical Support & Maintenance - Far East/Turning Turnover (HK$’M) ↑6% 900 850 800 Regent Hotel 750 700 650 834 600 784 550 500 450 EMSD 400 FY2021 FY2022 FSE Lifestyle Services Limited | 17
Slide 18: (iii) Security Guarding & Event Services
City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event Over MTR Properties New World Properties 600 security guarding, security systems and event services contracts Shopping Malls FSE Related Projects FSE Lifestyle Services Limited | 18
Slide 19: (iii) Security Guarding & Event Services
City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event HKJC Racecourses HKCEC AsiaWorld-Expo Music Concerts Chief Executive Elections Event Organisers FSE Lifestyle Services Limited | 19
Slide 20: (iii) Security Guarding & Event Services Turnover
City Essential Services (iii) Security Guarding & Event Services – General Security/Perfect Event Turnover (HK$’M) ↓4% 700 650 600 AsiaWorld-Expo 550 500 660 636 450 400 350 300 Chief Executive Elections FY2021 FY2022 FSE Lifestyle Services Limited | 20
Slide 21: (iv) Insurance Solutions - NOVA
City Essential Services (iv) Insurance Solutions - NOVA Over Kai Tak Sports Park Hung Fook Tong 3,600 insurance solutions contracts HKCEC ALBA Integrated Waste Solutions FSE Lifestyle Services Limited | 21
Slide 22: (iv) Insurance Solutions - NOVA Turnover
City Essential Services (iv) Insurance Solutions - NOVA Turnover (HK$’M) ↑16% 110 100 90 Kai Tak Residential Development 80 70 100 60 86 50 40 30 The Pavilia Farm FY2021 FY2022 FSE Lifestyle Services Limited | 22
Slide 23: (v) Environmental Solutions
City Essential Services (v) Environmental Solutions – FSE Environmental/Extensive/HKIL Over Advanced Manufacturing Centre – 11 SKIES – Electro-chlorination System Extra Low Voltage 1,000 environmental solutions contracts Kai Tak Sports Park – IL Picco Discovery Bay – Building Materials Landscaping F
Slide 24: (v) Environmental Solutions Turnover
City Essential Services (v) Environmental Solutions – FSE Environmental/Extensive/HKIL Turnover (HK$’M) 300 ↑55% 280 260 240 220 Kai Tak Sports Park 200 180 160 274 140 120 177 100 80 60 40 11 SKIES - HK Airport FY2021 FY2022 FSE Lifestyle Services Limited | 24
Slide 25: Segment Highlight: City Essential Services
Segment Highlight: City Essential Services Turnover* Profit* (HK$M) (HK$M) 3,500 500 450 3,253 3,250 400 368 4 2,999 350 3,000 22 300 2,750 250 200 202 364 2,500 2,977 150 100 2,250 50 2,000 0 FY2021 FY2022 FY2021 FY2022 Restatements for reclassification of ELV business As previously reported * Rest
Slide 26: E&M Services
E&M Services FSE Engineering/Majestic/Young’s Over Immigration Headquarters in 11 SKIES - HK Airport 100 Tseung Kwan O E&M services contracts Studio City Phase 2 深圳前海周大福金融大廈 FSE Lifestyle Services Limited | 26
Slide 27: Segment Highlight: E&M Services
Segment Highlight: E&M Services Turnover* Profit* (HK$M) (HK$M) 3,000 175 150 2,750 125 2,500 3,018 173 2,796 100 2,250 75 108 2,000 50 FY2021 FY2022 FY2021 FY2022 * Restated for prior year due to reclassification of ELV business to City Essential Services FSE Lifestyle Services Limited | 27
Slide 28: Remaining Works
REMAINING WORKS (HK$’M) 12,000 Stable 10,000 8,000 1% 6,000 8% 10,668 10,662 4,000 20% 5,150 5,085 2,000 4,072 4,415 1,446 1,162 0 Property FY2021 & facility FY2022 City Essential FY2021 FY2022 E&M FY2021 FY2022 Total FY2021 FY2022 management Property & facility City Essential E&M TOTAL management F
Slide 29: Capital Structure
Capital Structure As at 30 June 2022 Banking Facilities Cash and Banks Debt Maturity Profile $946M $686M, 89% (in HK$M) Jun 23 140 Total Total $2,732M $767M Dec 24 264 $65M, 9% $16M, 2% Zero net gearing ratio $1,786M Unutilised HKD Utilised RMB Others FSE Lifestyle Services Limited | 29
Slide 30: Why FSE Lifestyle?
Why FSE Lifestyle? High Dividend Yield • Average 8% yield • Outperformed HSI and HSPSMI in the past year Growth • 14% CAGR Turnover FY2017-22 • 24% CAGR Profit FY2017-22 Strong Governance & Capital Management • High caliber management team • Commitment to ESG & CSR • Zero net gearing • Ample facilit
Slide 31: Organic Growth through FSE Ecosystem
Organic Growth through FSE ECOSYSTEM A Unique Diversified Integrated Conglomerate (Multi Service Lines) • Strong Cross-selling Synergies • Diversified Income Streams • High Quality FSE Lifestyle Services Limited | 31
Slide 32: Resilient Business with Promising Future
Resilient Business with Promising Future Unique, complementary and Integrated FSE Ecosystem, historical high revenue at $7b Solid full year results despite COVID-19 impacts, core earnings increased ↑35% High dividend yield, 8% p.a. FSE Lifestyle Services Limited | 32
Slide 33: Resilient Business with Promising Future
Resilient Business with Promising Future Strong financial position, zero net gearing Strong order book $18b Brand differentiation, preparing next phase of growth FSE Lifestyle Services Limited | 33
Slide 34: Q&A
Q&A FSE Lifestyle Services Limited | 34
FSE Lifestyle Services — FY2022 Earnings Presentation on 6ix