New World Development Co. Ltd. · HKEX:17
New World Development — H1 FY2021 Earnings Presentation
39 slides from New World Development's earnings presentation, Feb 26, 2021
Slide 1: 1HFY2021 Interim Presentation Analyst Briefing
1HFY2021 INTERIM PRESENTATION ANALYST BRIEFING 26 February 2021 0
Slide 2: NWD: Only HK Developer with a Tech-Powered Ecosystem
NWD: ONLY HK DEVELOPER WITH A TECH-POWERED ECOSYSTEM PROVIDING UNIQUE GROWTH POTENTIALS Large and growing Maximize customer Tech-optimized CRM and ecosystem monetizing stickiness and recurring K Dollar reward system inner circulation spending within ecosystem 17 business units with Customer profilin
Slide 3: Broad and Rapidly Expanding Ecosystem Capitalizes on Inner Demand Circulation
BROAD AND RAPIDLY EXPANDING ECOSYSTEM CAPITALIZES ON INNER DEMAND CIRCULATION 14M+ total members in private domain traffic Large ecosystem covering all aspects of customer’s daily life Public Domain Exponential growth potentials from absorbing public domain traffic into our ecosystem Strategic partn
Slide 4: NWD Tech Pillars: Fully Utilizing Technology for CRM Optimization
NWD 4 TECH PILLARS: FULLY UTILIZING TECHNOLOGY FOR CRM OPTIMIZATION Leveraging AI and big data analysis to learn customer habit and boost recurring spending CRM and Big Data K11 GO & K11 App Online offline touch points Personalized program K K Dollar & KPOS Artificial intelligence Instant earn and b
Slide 5: Best-in-Town Reward Program Results in Customer Stickiness
BEST-IN-TOWN REWARD PROGRAM RESULTS IN CUSTOMER STICKINESS AND HIGHER RECURRING SPENDINGS The broadest and most customer-friendly rewards program among HK developer Competitive Advantages No earning limit Ease of use = K$ No burning condition Higher usage & spending One platform | One currency Highe
Slide 6: Proven Success in Boosting Customer Spending by Ecosystem Cross Selling
PROVEN SUCCESS IN SIGNIFICANTLY BOOSTING CUSTOMER SPENDING ACROSS BUSINESSES BY ECOSYSTEM CROSS SELLING Cross business sellings increasing up to 17x while per customer spendings growing consistently Synergies Between Business Segments Growing In Multiples Growth Multiple Between Retail and Insurance
Slide 7: First HK Developer to Deploy IoT and Automation
FIRST HK DEVELOPER TO DEPLOY IOT AND AUTOMATION ACROSS RESIDENTIAL AND COMMERCIAL PROJECTS Provides smart living and working environment to enhance users’ satisfaction and profiling Residential Office 2.0 automation Partnering with leading Sanitisation | F&B Delivery IOT company Robotics Offering pr
Slide 8: Key Highlights
KEY HIGHLIGHTS 7
Slide 9: 1HFY2021 Summary Financials
KEY HIGHLIGHTS 1HFY2021 SUMMARY FINANCIALS Ongoing recovery from the bottom| Top line expansion with stringent cost control Profit Attributable To Revenues Underlying Profit Shareholders HKD 35,577M Recurring HKD 1,013M HKD 3,719M +10% YoY SG&A Expenses -0.4% YoY -5% YoY 12% YoY Interim DPS Share Bu
Slide 10: Property Development
PROPERTY DEVELOPMENT 9
Slide 11: Property Development: Resilient Performance
PROPERTY DEVELOPMENT RESILIENT PERFORMANCE Healthy revenue growth amidst challenging environment Revenue by Region Revenue increase 11,987 12,795 7% YoY Primarily driven by Ningbo New World Plaza Land (寧波新世界) 8,320 10,030 Major booking in 2HFY2021 • HK: Artisan Garden; Atrium House, Timber House 3,6
Slide 12: Contracted Sales Performance in Hong Kong
PROPERTY DEVELOPMENT CONTRACTED SALES PERFORMANCE IN HONG KONG 1HFY2021 contracted sales of HKD26.3bn exceeded annual target HKD20bn THE PAVILIA FARM: The New Media King 888 LAI CHI KOK ROAD: Launch Three-phase development atop Tai Wai station Grade-A Office Building Located in West Kowloon 3,090 2M
Slide 13: Contracted Sales Performance in Mainland China
PROPERTY DEVELOPMENT CONTRACTED SALES PERFORMANCE IN MAINLAND CHINA Contracted sales on track of target – maintaining strong presence in GBA Major GBA Projects Development Sales Gross Contracted Sales (RMB M) Prince Bay (太子灣), Shenzhen RMB 19,800 31,560 sqm 18,200 Apartment Office 2.5B 16,300 GBA Yi
Slide 14: Wong Chuk Hang Phase
HK PROPERTY DEVELOPMENT WONG CHUK HANG PHASE 5 Atop MTR station | New ticket king title to continue The Southside CBD2 only MEGA comprehensive development project on HK Island in recent years NWD-LED Total GFA Consortium 636,000 sqft Land Premium Units 4.4% lower 1,050 than phase 4 Average size of H
Slide 15: North Point State Theatre Building
HK PROPERTY DEVELOPMENT NORTH POINT STATE THEATRE BUILDING Conserving Hong Kong’s last surviving movie palace | Heritage revitalization Grade 1 Historical Building Hong Kong’s 68-year old iconic state theatre We will do our best to conserve and restore this iconic building to its original glamor and
Slide 16: Property Investment
PROPERTY INVESTMENT 15
Slide 17: Property Investment: Stable Performance
PROPERTY INVESTMENT STABLE PERFORMANCE Healthy performance growth | Maintain high occupancy rate with improving client mix Gross Rental Income by Region K11 Art in One campaign drives 15-20% growth in footfall New Prominent Tenants to improve client mix 2,315 2,188 1,344 1,440 844 875 1HFY2020 1HFY2
Slide 18: Hong Kong K11 Is Well Positioned for Economy Recovery
PROPERTY INVESTMENT HONG KONG K11 IS WELL POSITIONED FOR ECONOMY RECOVERY Others see crisis, we see opportunity - K11 grabbing market share across the board during COVID Hong Kong K11 Malls Strong occupancy level throughout COVID period Mall Sales YoY % K11 Musea K11 Art Mall HK HK K11 HK Retail Mar
Slide 19: K11 China Mall Sales Ride on Consumption Upgrade
PROPERTY INVESTMENT OUTPERFORMED K11 CHINA MALL SALES RIDE ON CONSUMPTION UPGRADE AND DOMESTIC CIRCULATION Started by Wuhan K11 opening fully captured revenge consumption Total KLUB11 China member China K11 Malls 134,000 sqm Mall Sales YoY % China K11 China Retail Market ↑ 30% total GFA in Hankou Ho
Slide 20: SKYCITY Unveils: An Attraction at the Heart of GBA
PROPERTY INVESTMENT 11 SKIES UNVEILS: AN ATTRACTION AT THE HEART OF GBA Connect 31.6M GBA population within 1.5 hours - Shenzhen, Zhuhai, Zhongshan, Jiangmen, Foshan Hong Kong’s largest hub for retail, dining and entertainment Total GFA 3.8M Sqft Opening in phases 2022-2025 Retail & Dining Shops Din
Slide 21: Steady Pipeline Growth of K11
PROPERTY INVESTMENT STEADY PIPELINE GROWTH OF K11 Acceleration in commercial property management with potential asset light opportunities K11 Development Properties K11 Development Properties (continued) 1 1 Status Site Type GFA (sqm) Status Site Type GFA (sqm) Hong Kong K11 34,000 Hong Kong Kai Tak
Slide 22: Corporate Actions
\ le CORPORATE ACTIONS
Slide 23: Non-Core Disposals
FINANCIAL & CAPITAL MANAGEMENT NON-CORE DISPOSALS HKD12.8bn1 of disposals in YTD FY2021 | Likely to beat full year target of HKD13-15bn August 2020 December 2020 January 2021 Bus Business in HK Office Tower in Wuhan Post-1HFY2021balance Environment Asset sheet event in China HKD3.2bn RMB1.3bn HKD6.5
Slide 24: Capital Financing Snapshot
CORPORATE ACTIONS CAPITAL FINANCING SNAPSHOT Decreasing cost of financing and net gearing Cost of financing and net gearing both decreased as at 31 December 2020 2.93% 40.4% Cost of financing Net gearing ratio -1.1 ppts vs 30 Jun 2020 -1.2 ppts vs 30 Jun 2020 -0.8 ppts vs 31 Dec 2019 -1.8 ppts vs 31
Slide 25: ESG
ESG 24
Slide 26: ESG Integration: Emerging Global Leader
ESG ESG INTEGRATION: EMERGING GLOBAL LEADER Creating Shared Value (CSV) for all stakeholders Rising Performance on International ESG Ratings BB on MSCI ESG Rating Low risk since 2019 Highest 5-star rating since B (improved two grades Listed on Dow Jones 2019 and global 1st in from 2019 in Climate Su
Slide 27: Commitment to Science Based Targets
ESG COMMITMENT TO SCIENCE BASED TARGETS Strengthening Governance to drive Climate Action Managing Climate Risk Through Supporting TCFD No Coal Pledge Climate resilience study on Climate resilience building design in Climate Change Policy 14 GBA existing buildings guideline for new developments Setti
Slide 28: Thank you
aH RIE R WR New World Development Company Limited TEC eal ol Thank you
Slide 29: Appendix
aH RIE R WR New World Development Company Limited TEC eal ol Appendix
Slide 30: 1HFY2021 Segmental Results
APPENDIX 1HFY2021 SEGMENTAL RESULTS Resilient results in property investment and NWS-core business despite macro challenges 1HFY2021 Segment Results (HKD m) (483) 2,586 1,333 (666) 6,885 4,115 Property Property Hotel NWS – Property… Development Property… Investment Hotel… Operations NWS -… Core Busi
Slide 31: Land Bank Overview
APPENDIX LAND BANK OVERVIEW GBA land bank2 accounted for 62% of total land bank in Mainland China and Hong Kong Land bank in Hong Kong Land bank in China Area Total GFA2 (sqm) GBA 2,728,000 New Territories Kowloon Central Region 617,000 5.9M sqft Eastern Region 897,000 3.0M sqft Northern Region 610,
Slide 32: Pipeline Growth in Property Development in Hong Kong
APPENDIX PIPELINE GROWTH IN PROPERTY DEVELOPMENT IN HONG KONG 3.7M sqft to be completed between 2HFY2021 to FY2024 CC date / Total Attributable GFA (sq.ft) Group’s Handover Location Project Name Total Interest (%) date Residential Retail Office (excluding (Calendar year) carpark) Scheduled for compl
Slide 33: Pipeline Growth in Property Development in Mainland China
APPENDIX PIPELINE GROWTH IN PROPERTY DEVELOPMENT IN MAINLAND CHINA 500k sqm to be completed in 2HFY2021 Group’s Total GFA (sqm) Location Region Total Interest (%) Residential Retail Commercial Office Excl. carpark Scheduled for completion in 2HFY2021 1 Guangzhou Park Paradise District 3 Batch B Guan
Slide 34: NWD Ecosystem
APPENDIX NWD ECOSYSTEM Synergy across NWD ecosystem, including property, insurance, healthcare, insurance and more 33
Slide 35: Case Study: Integration of Pavilia Farm Residents into NWD Ecosystem
APPENDIX CASE STUDY: INTEGRATION OF PAVILIA FARM RESIDENTS INTO NWD ECOSYSTEM Pavilia Farm has converted 62K new members to NWD Ecosystem Buyers from Eco-system Traffic Converted to Eco-system 548 27% of total buyers 15.3K Retail New World Club Others Retail Insurance, Hospitality 72% 21% 7% TPF Tra
Slide 36: Maintain Leadership in GBA Among Hong Kong Peers
APPENDIX MAINTAIN LEADERSHIP IN GBA AMONG HONG KONG PEERS Earliest and dominant leader in the GBA among Hong Kong developers HEAVILY INVESTING IN THE GBA FOCUS ON OLD CITY REDEVELOPMENT Before "GBA" was even official Prime location, limited supply, lower costs FY2021 FY2022 FY2023 FY2024+ EARLIEST S
Slide 37: Robotics Video
APPENDIX ROBOTICS VIDEO Automation in retail and office F&B delivery Sanitisation 36
Slide 38: Internet of Things (IoT)
APPENDIX INTERNET OF THINGS (IOT) LifeSmart, Create a Smarter and Better Life 37
Slide 39: Disclaimer
DISCLAIMER Important notice The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, inducement, invitation, recommendation or
New World Development Company — H1 FY2021 Earnings Presentation on 6ix