Slide 1: CTF Services Limited FY2025 Annual Results Presentation
CTF Services Limited (659.HK) FY2025 Annual Results Presentation
Slide 2: Agenda
Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)
Slide 3: FY25 Highlights
FY25 Highlights ❖ Continued efforts to refine and strengthen the Group’s business portfolio to enhance long-term value creation ❖ Renamed the Insurance Segment to the Financial Services Segment and executed strategic acquisitions to drive one of the Group’s focuses on the fast-growing wealth managem
Slide 4: Portfolio Optimization for Long-Term Growth and Strategic Focus
Portfolio Optimization for Long-Term Growth and Strategic Focus • Streamlined the portfolio by exiting non-core businesses with uncertain prospects • Strengthened capital deployment into resilient, cash-generative and growth segments aligned with our strategic priorities Divestments Strategic advanc
Slide 5: Investment Thesis
Investment Thesis Agile management of diversified businesses to drive stable cash flow & deliver long-term shareholder returns Operational excellence across diversified businesses generate stable cash flow and contribute to resilient earnings even amid macroeconomic uncertainties Expansion of Financ
Slide 6: Strong fundamentals in a shifting landscape
FY25 AOP1 up 7% YoY to HK$4,466M FY25 AOP up 9% YoY to HK$4,505M (if excl. Free Duty business & Wai Kee) Strong fundamentals in a shifting landscape 32% HK$719M 16% HK$1,439M of Group’s 2% YoY(incl. Wai Kee) of Group’s AOP by Location Roads 8% YoY AOP Construction AOP 7% YoY(excl. Wai Kee) Others 2%
Slide 7: Business Strategy & Outlook
Business Strategy & Outlook Maintains a vigilant approach to capital deployment and business operations z Roads • Industry growth faces pressure from shifting traffic patterns and rising competition from newly developed road networks, which may moderate long-term returns • In a constrained environme
Slide 8: Business Strategy & Outlook
Business Strategy & Outlook Maintains a vigilant approach to capital deployment and business operations z Construction • Poised to capture growth opportunities and gain market share in Hong Kong’s recovering construction market • Long-term outlook boosted by government initiatives, especially the No
Slide 9: Agenda
Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)
Slide 10: FY25 Financial Results Highlights
FY25 Financial Results Highlights Resilient growth; Maintain flexibility to support future growth and strategic initiative AOP Profit Attributable HK$4,466M (+7% YoY) to Shareholders (Incl. Free Duty & Wai Kee) HK$4,505M (+9% YoY) HK$2,162M Cash on Hand Committed undrawn (Excl. Free Duty & Wai Kee)
Slide 11: Proactive & Strategic Financial Management
Proactive & Strategic Financial Management Healthy debt profile to navigate market volatility • Strategically shifted a substantial portion of debt portfolio toward lower-cost RMB borrowings • Serve as a natural hedge against RMB-denominated assets and help contain RMB depreciation risk and finance
Slide 12: Diversified Funding Sources
Diversified Funding Sources Strengthened debt structure supports robust credit ratings Banking Facilities Convertible Bonds (CBs) (onshore + offshore) Credit Rating Undrawn committed c.HK$9.6Bn HK$780M 4.0% CBs due Jul 2025 Offshore • Maturity Date: 6 months (issued in Jan 2025) • Initial conversion
Slide 13: Resilient Financial Profile
Resilient Financial Profile Judicious financial management with strategic leverage Acquisition Strong cash flow generation and non-core • Private perp disposals to bring down leverage despite • Public perp redeemed of CTF Life redeemed partially a series of value-accretive acquisitions • Special div
Slide 14: Solid Financial Performance
Solid Financial Performance Sustainable financial growth safeguards robust earnings quality Growing AOP despite Market Volatilities Adjusted EBITDA as Proxy for Operating Cash Flow HK$’M HK$’M 7,241 7,316 4,167 4,466 5,861 3,444 FY23 FY24 FY25 FY23 FY24 FY25 (Restated) (Restated) Continual Profit At
Slide 15: Committed to Sustainable and Progressive Dividend Policy since FY19
Committed to Sustainable and Progressive Dividend Policy since FY19 Proven track record of continuous returning cash to shareholders DPS (HK$) 2.44 FY25 Final ordinary dividend 1.79 (cash and/or scrip) + 1-for-10 Bonus shares 0.95 ➢ Scrip dividend 1 ✓ Increase investment in company without incurring
Slide 16: Issuance of Convertible Bonds
Issuance of Convertible Bonds Primary objective: increase the public float and enhance liquidity Issued HK$780M 4.0% convertible bonds in Jan 2025 Maturity Date: 6 months till Jul 2025 Initial conversion price: HK$8.043 Restore Public Float 1 5% premium to the closing price of HK$7.660 on 15 Jan 202
Slide 17: Agenda
Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)
Slide 18: Roads: 13 projects across the Mainland
Roads Well-diversified toll road portfolio located in six strategic locations in the Mainland 13 projects across the Mainland Tianjin 1 Expressway c. 880 km Length:60.7km Concession Expiry: 2040 Hubei Zhejiang 2 Expressways 1 Expressway Length: 137.4km Length: 103.4km Concession Expiry: 2040-2050 Co
Slide 19: Roads
Roads A stable performance despite a challenging environment • Total AOP of the Roads segment declined mainly due to: 1) the expiry of the concession for Guangzhou City Northern 1 Segment AOP Ring Road; and 2) slower-than-expected traffic recovery and intensified competition across certain road proj
Slide 20: Financial Services
Financial Services Rebranded as CTF Life – building on a legacy of trust, powered by CTF Group • Capitalize on CTF Group’s established brand (including CTF Jewellery’s 95-year history within Asian communities) providing a strong foundation for CTF Life’s growth • Harness the CTF Group’s diverse ecos
Slide 21: Financial Services: CTF Life AOP and CSM
Financial Services CTF Life – noticeable AOP and CSM achievement Segment AOP • AOP +29% YoY to HK$1,242M mainly driven by increase in CSM release supported by the profitable business HK$M growth and favourable financial market movements YoY 29% 1,242 • CSM release +28% YoY to HK$1,130M which was t
Slide 22: Financial Services: CTF Life operating metrics
Financial Services CTF Life – sustainable growth in operating metrics Strong APE Growth Post COVID-19 Strong VONB Growth Post COVID-19 • Overall APE -27% YoY to HK$3,299M mainly due to an exceptionally 23% CAGR HK$M 24% CAGR FY25 vs FY24 strong FY2024 post COVID-19 rebound and intensified competitio
Slide 23: CTF Life agency transformation
Financial Services CTF Life – Driving sustainable growth through agency transformation Robust Agency Growth • Focused on quality agency recruitment and structured training to enhance capability and Agency APE (HK$M) performance New Agents Recruit 1,200 600 500 • Built an effective agency force throu
Slide 24: CTF Life investment portfolio
Financial Services CTF Life – investment portfolio (as of 30 Jun 2025) Fast-growing Investment Portfolio AUM* (HK$’Bn) Prudent Asset Allocation* CAGR=15% Bonds (Including Bond Funds) 91 71% 78 68 Listed Equities (Including Equity Other Assets & Funds) Cash Alternatives 14% 30 Jun 23 30 Jun 24 30 Jun
Slide 25: Strategic acquisitions strengthen integrated wealth management
Financial Services Strategic acquisitions strengthen the integrated wealth management and fintech capabilities The Power of Combination: 1+1+1 > 3 ment Ins e Announcement Mar 2025 Aug 2025 nag ur an a Date M ce t se Transaction 43.93% stake1 in uSmart 65% stake in Blackhorn Financial Services Segmen
Slide 26: Logistics
Logistics Diversified logistics investments spread out Greater China 7 logistics properties in Chengdu, Wuhan China United International Rail Containers (100% interest) & Co. Ltd. (“CUIRC”) (30% interest) Suzhou (90% interest) • JV with China State Railway Group, Urumqi Jilin • Total gross leasable
Slide 27: ATL stable performance amid macroeconomic uncertainties
Logistics ATL – stable performance amid macroeconomic uncertainties in HK Segment AOP Our logistics warehouse operations in the Mainland have been strategically rebranded as CTF Logistics, aspires to be ‘Your YoY HK$M trusted partner in premium logistics space and services’ in the 3% Mainland 722
Slide 28: Logistics assets portfolio in the Mainland
Logistics Logistics assets portfolio in the Mainland with desirable geographical positioning ➢ Logistics Asset & Management • 7 logistics properties in Chengdu, Wuhan & Suzhou - total gross leasable area c.6.5M sqft Average occupancy rate across 7 logistics properties in Chengdu, Wuhan & Suzhou c.87
Slide 29: CUIRC delivered robust operational performance
Logistics CUIRC delivered robust operational performance in FY2025 ➢ CUIRC - 13 large-scale rail container terminals in the Mainland Government’s strong support for the development of rail AOP transportation +23% YoY Growing demand for multimodal transportation services (e.g. the China-Europe Railwa
Slide 30: Construction: premium companies with proven track record
Construction Premium construction companies with a proven track record in HK Segment AOP • CTFS Construction Group delivered resilient performance, maintaining a steady AOP despite headwinds from a softer project pipeline and rising material costs HK$M YoY 2% • Hsin Chong Aster contributed positiv
Slide 31: CTFS Construction innovation
Construction CTFS Construction – driving operational excellence through innovation ►Founded in 1961, Hip Hing Group provides comprehensive project management services to clients in design, procurement, engineering and construction CTFS ►Founded in 1929, Vibro Group is the oldest foundation contracto
Slide 32: CTFS Construction Group strategic positioning for growth
Construction CTFS Construction Group – strategic positioning for growth With a less crowded market, CTFS is ideally positioned to capture a greater project share, backed by our strong execution track record and expanded service offerings. Near-to-medium-term opportunities Medium-to-long term opportu
Slide 33: GHK consistent progress
Facilities Management GHK – consistent progress driven by premier healthcare service & enhanced reputation GHK(30% interest) Segment AOP* Excl. Free Duty (divested in Dec 2024) (CTFS - 40% interest & IHH Healthcare Berhad - 60% interest) YoY HK$M 16% • Notable progress in ramping up its operations
Slide 34: GHK & PMS multi-specialty hospital, clinics and laboratory services
Facilities Management GHK & PMS – provide a multi-specialty hospital, clinics and laboratory services Gleneagles Healthcare Gleneagles Medical Clinic Gleneagles Primo Novum Place, Hong Kong* Central, Hong Kong Surgical Centre* • general outpatient consultations • general and specialist outpatient •
Slide 35: Manage & operate a mix of facilities in Hong Kong
Facilities Management Manage & operate a mix of facilities in Hong Kong HKCEC • AOP declined was primarily driven by decreased F&B revenue due to fewer banquet events and downscaling of trade exhibitions • No. of events to 786 (FY24: 823) and total attendance +7% YoY to 7.8M • Leveraging its world-c
Slide 36: Agenda
Section 1 CTFS at a Glance Section 2 Financial Update Section 3 Business Operation Update Section 4 Environment, Social & Governance (ESG)
Slide 37: FY2025 ESG Report
FY2025 ESG Report Breakthrough 2050 Targets FY2025 Status Act with Integrity • Ensuring fairness and a high level of ethical standards in our work. • Supporting the growth of our business and helps Business Ethics and Anti- Corruption • 0 convicted cases on anti- corruption 0 convicted cases of nurt
Slide 38: Our Ratings Performance
Our Ratings Performance The Hang Seng Corporate Sustainability Index Assessment • Overall score 82.26 • Maintain the AA+ rating 38
Slide 39: CTFS Group GHG Hotspots Analysis
CTFS Group GHG Hotspots Analysis Our GHG Hot Spots Overview Scope 1 & 2 Approximately 86% of CTFS’s Scope 1 and 2 emissions arise from on-site operations at Hip Hing and HML Scope 3 Scope 3 emissions make up around 97% of CTFS GHG emission Scope 1 Scope 3 Scope 2 Purchased goods Purchased and servic
Slide 40: Environmental
Environmental Reducing 50% GHG emissions by 2035 relative to 2023 levels and reaching global net zero Our Commitment : emissions at a sector level in eligible 1.5°C-aligned pathways by 2050. Our Progress : 19% reduction in GHG emissions of Scope 1 & 2 compared to FY2023 baseline Decarbonization Leve
Slide 41: Tech-enabled Transition
Tech-enabled Transition ESG Material Issue Optimizing engineering and construction process: Distant Tower Crane Command System Responsible Product and Services; Innovation and Digitalization The system enables operators to control cranes from ground-level cabins while accessing real- Business time d
Slide 42: Tech-enabled Transition
Tech-enabled Transition To strengthen our commitment to employee wellbeing and environmental stewardship, we adopt of tech-enabled communication channels that will Improve engagement with employees Enhance health and safety for Safeguard the surrounding communities across all levels construction wor
Slide 43: Tech-enabled Transition
Tech-enabled Transition ESG Material Issue Smart Systems Implemented Across Our Road Operations Innovation and Digitalization CTFS has continued to make strides in enhancing the safety, intelligence, and sustainability of our expressway operations. Business Roads Key Features Stakeholders • High-def
Slide 44: Financing the Future
Financing the Future Our Commitment : 50% of bond and loan facilities from green financing by 2030 Our Progress : 39% of bond and loan facilities from sustainability linked green financing (as of 30 June 2025) ESG Material Issue Purchasing Green Electricity Certificates Sustainable Finance and Inves
Slide 45: Sustainable Finance
Sustainable Finance Investment planning CTFS Group CTF Life CTF Life’s Responsible Investment Standards is guided by the United Nations Principles for Responsible Investment (“UNPRI”), organized across six Proposed Investment Decline if on exclusion list implementation pillars: Implementation Pillar
Slide 46: Build for Transition
Build for Transition Enhance awareness · Build practical skills · Embed ESG thinking into everyday decision-making Fostering a culture of accountability and sustainable growth Imp[ACT] Fund Evolve Conference Mini Fireside Chat Leadership Workshop Imp[ACT] Leaders 46
Slide 47: Appendices
CTFS Appendices
Slide 48: Corporate Structure
Corporate Structure Cohesive synergies among business units of the prominent shareholder Since mid-November 2023, CTFS is majority owned by Chow Tai Fook Enterprises Limited and in turn by the Cheng Family, one of the most prominent families in Hong Kong. The Cheng Family’s diversified investments a
Slide 49: CTFS: A Clear Path Forward
CTFS: A Clear Path Forward Ownership, Governance, and Operational Framework Before Voluntary General Offer in 2023 • Ownership Structure: No longer the subsidiary of New World Development; Directly owned by Chow Tai Fook Enterprises Limited, with no cross-shareholding Shareholding c.45.2% Structure
Slide 50: FY25 Adjusted EBITDA Analysis
FY25 Adjusted EBITDA Analysis Adjusted EBITDA includes dividend from JVs/assocs is the operating cash flow proxy HK$’M 8,000 1,393 7,316 7,000 Others 6,000 312 583 (19) Dividends 1,814 Impairment received 5,000 loss on Net loss on from FV of intangible associated 4,000 investment concession companie
Slide 51: FY25 Financial Summary
FY25 Financial Summary Profit attributable to shareholders rose modestly by 4% YoY HK$’M 5,000 4,466 (448) 4,500 (646) 4,000 576 (1,010) Net loss on 3,500 fair value of (153) investment properties, Impairments 3,000 Loss on Share of (24) (397) net of tax and non-operating disposal provisions, Net fi
Slide 52: Issuance of Exchangeable Bonds
Issuance of Exchangeable Bonds Issue size: Approx. HK$2.2 billion PROCEEDS Coupon: 0.75% p.a. from Issuance Issue price:103% Maturity Date: 3 years till 2028 Approx. HK$2.3 Bn Exchangeable shares: Shoucheng Holdings (0697.HK 首程控股) Pre-tax accounting Initial exchange price: HK$2.6565 DISPOSAL GAIN (5
Slide 53: Key Acquisitions
Continual Strategic Portfolio Optimization to Create Long-Term Value Build a stronger foundation for scalable growth *pending completion, subject to regulatory approvals FY18 to FY24 FY25 to FY26 Suiyuenan Expy Chow Tai Fook Life Insurance Co Ltd Hsin Chong Aster Building Blackhorn Group Ltd* Key Ac
Slide 54: CTF Life – Excellence in Insurance, Powered by Innovation
Appendix CTF Life – Excellence in Insurance, Powered by Innovation MyWealth FamCare 198 Savings Insurance Plan 2 Critical Illness Protector Builds wealth with protection and legacy planning Multi-stage illness protection for the whole family • 2/5/10-year premium terms, 8 currency options • Coverage
Slide 55: Board of Directors
Appendix Board of Directors Dr Cheng Kar Shun, Henry GBM, GBS ED Chairman Mr Cheng Chi Ming, Brian Mr Ho Gilbert Chi Hang Mr Lam Jim Mr Cheng Chi Leong, Christopher Group Co-Chief Executive Officer Group Co-Chief Executive Officer Group Chief Operating and Financial Officer NED Mr William Junior Gui
Slide 56: Expressway Projects Summary of FY2025
Appendix Expressway Projects Summary of FY2025 Attributable FY2025 Average Projects Province Length Lanes Expiry Date Interest Daily Traffic Flow Beijing-Zhuhai Expressway Guangdong 25% Section 1: 8.6 km Section 1: Dual 3-Lane 2030 192,856 (Guangzhou-Zhuhai Section) 1,2 Section 2: 49.59 km Section 2
Slide 57: Logistics Projects Summary of FY2025
Appendix Logistics Projects Summary of FY2025 FY2025 FY2025 Attributable Gross Leasable Area Project Location Operation Date Expiry Date Occupancy Capitalization Interest (sq m) Rate Rate ATL Logistics Centre Hong Kong Limited Hong Kong 56% 551,846 Phase 1: February 1987 2047 80.7% Phase 2: March 19
Slide 58: Logistics Projects Summary of FY2025
Appendix Logistics Projects Summary of FY2025 FY2025 Attributable Project Investment Scope Location and Operation Date Expiry Date Throughput Interest Achieved (TEUs) China United International Rail Pivotal rail container terminal network 30% Kunming: January 2008 2057 7,000,000 Containers Co., Limi
Slide 59: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement For the year ended 30 June 2025 2024 HK$’m HK$’m Revenue Non-insurance 20,204.7 22,968.5 Insurance 4,080.6 3,453.1 24,285.3 26,421.6 Cost of sales (17,568.2) (19,977.7) Insurance service expenses (2,765.6) (2,508.0) Net (expenses)/income from reinsurance contr
Slide 60: Disclaimer
Disclaimer CTF Services Limited (“CTFS”) makes no representation or warranty of any kind, express, implied or statutory regarding the accuracy or completeness of the information contained. It is not the intention to provide, and you may not rely on this presentation as providing, all material inform