Ctf Services Limited · HKEX:659
Ctf Services — NWS Holdings — H1 FY2018 Earnings Presentation
36 slides from Ctf Services's earnings presentation, Feb 26, 2018
Slide 1: FY2018 Interim Results
FY2018 Interim Results Connecting Lives Building Futures 1
Slide 2: Results for the six months ended 31 December
For the six months 2017 2016 Change ended 31 December (HK$’M) (HK$’M) (%) Revenue 18,076.9 13,846.0 31 Attributable Operating Profit (AOP) 2,682.1 2,519.4 6 Profit Attributable to Shareholders 2,478.1 2,600.1 5 (PAT) Basic Earnings per share (HK$) 0.64 0.68 6 Dividend per share (HK$) 0.32 0.34 6 2
Slide 3: Financial Position
Financial Position As at As at 31 Dec 2017 30 Jun 2017 (HK$’M) (HK$'M) Total cash and bank balances 6,421 6,453 Total debt 12,570 9,683 Net debt position 6,149 3,230 Net gearing ratio 13% 7% 3
Slide 4: NWS Investment Portfolio
NWS Investment Portfolio Infrastructure Services 基建 服務 Roads Facilities Management 道路 設施管理 Environment 環境 Construction & Transport Logistics 建築及交通 物流 Strategic Investments Aviation 策略性投資 航空 4
Slide 5: Attributable Operating Profit
Attributable Operating Profit By Segment By Region HK$’M HK$’M 3,000 3,000 2,519 2,682 2,519 2,682 2,500 2,500 1,248 905 2,000 2,000 (50%) (34%) 1,524 2,025 1,500 (61%) (76%) 1,500 1,000 1,000 1,080 1,477 (43%) (55%) 500 995 657 500 (39%) (24%) 191 (7%) 300 (11%) 0 0 2016 2017 2016 2017 Infrastructu
Slide 6: Infrastructure
Infrastructure Roads Environment Infrastructure Logistics Aviation 6
Slide 7: Infrastructure
Infrastructure Roads and related projects in 16 Guangdong, Guangxi, Shanxi, Zhejiang, Tianjin and Hubei Roads SUEZ NWS with 66 1 environmental projects in Greater China 1 Chongqing Derun Environment Environment 2 Power plants in the PRC 1 ATL Logistics Centre China United Int’l Rail 1 Containers Log
Slide 8: AOP by Segment
Infrastructure AOP by Segment For the six months 2017 2016 Change ended 31 December (HK$’M) (HK$’M) (%) Roads 1,027.8 733.2 40 Environment 293.8 256.4 15 Logistics 338.5 316.1 7 Aviation 365.2 219.0 67 Total 2,025.3 1,524.7 33 8
Slide 9: AOP - Roads
Infrastructure Roads AOP - Roads For the six months ended 31 Dec HK$’M 38% 1,200 (+40%) 1,000 1HFY18 AOP 800 600 733 1,028 29% 400 1HFY17 AOP 200 0 2016 2017 9
Slide 10: Highlights – Roads
Infrastructure Roads Highlights – Roads AOP boosted by overall traffic growth of 10% and RMB exchange gains Pearl River Delta Region Traffic of Guangdong projects up 11% Yangtze Delta Region Traffic of Hangzhou Ring Road 杭州繞城公路 up 5% Tianjin Binhai New Area Traffic of Tangjin Expresswa
Slide 11: Highlights – Roads (Cont'd)
Infrastructure Roads Highlights – Roads (Cont’d) Healthy revenue growth Average Daily Toll Revenue RMB ‘000 6,000 5,805 5,431 5,000 4,000 3,751 3,454 3,000 2,136 2,242 1,950 2,000 1,494 1,000 0 Guangzhou City Beijing-Zhuhai Expressway Hangzhou Tangjin Expressway Northern Ring Road (Guangzhou-Zhuha
Slide 12: Roads 5-Year Summary (Mainland China Road Projects)
Infrastructure Roads 5-Year Summary (Mainland China Road Projects) Average Daily Traffic Flow * Average Daily Toll Revenue * Vehicles ‘000 RMB ‘000 1,200 1,199 21,000 20,157 1,081 20,000 19,000 18,415 1,000 973 CAGR: 18,000 CAGR: 858 13% 17,042 11% 17,000 783 16,000 800 15,205 15,000 14,000 14,206 6
Slide 13: AOP – Environment
Infrastructure Environment AOP – Environment For the six months ended 31 Dec HK$’M 11% (+15%) 300 1HFY18 AOP 200 10% 256 294 100 1HFY17 AOP 0 2016 2017 13
Slide 14: Highlights – Environment
Infrastructure Environment Highlights – Environment SUEZ NWS 蘇伊士新創建 (SUEZ 58% and NWS 42%) Water sales and wastewater treatment volume up 10% Chongqing Derun Environment 重慶德潤環境 Results enhanced by VAT subsidy on wastewater and rising waste incineration demand Energy High coal price conti
Slide 15: AOP – Logistics
Infrastructure Logistics AOP – Logistics For the six months ended 31 Dec HK$’M 13% 400 (+7%) 1HFY18 AOP 300 200 13% 316 339 100 1HFY17 AOP 0 2016 2017 15
Slide 16: Highlights – Logistics
Infrastructure Logistics Highlights – Logistics ATL Logistics Centre 96.3% occupancy rate Average rental up 4% 4-year building rehabilitation programme to be completed ATL Logistics Centre in 2H2018 (total CAPEX approx. HK$400 million) 16
Slide 17: Highlights – Logistics (Cont'd)
Infrastructure Logistics Highlights – Logistics (Cont’d) Xiamen Container Terminal Group 廈門集裝箱碼頭集團 Combined throughput hit 10 million TEUs for the first time at Xiamen Port in 2017 Tianjin port projects throughput up 3% Xiamen Container Terminal Group 17
Slide 18: Highlights – Logistics (Cont'd)
Infrastructure Logistics Highlights – Logistics (Cont’d) 10 terminals in operation • Kunming • Qingdao Chongqing Wuhan China United Int’l Rail Containers (CUIRC) • • Chengdu • • Xian • Zhengzhou • Dalian • Tianjin • Urumqi Throughput up 4% to 1.4 million TEUs Terminal under planning Guangzhou
Slide 19: AOP – Aviation
Infrastructure Aviation AOP – Aviation For the six months ended 31 Dec HK$’M 14% 400 (+67%) 1HFY18 AOP 300 200 9% 219 365 100 1HFY17 AOP 0 2016 2017 19
Slide 20: Highlights – Aviation
Infrastructure Aviation Highlights – Aviation Aircraft Leasing Fleet size of 105 (Asset value USD4.6 billion) Young fleet (average 3 years) with long leases attached (average 8 years) 13 planned aircraft delivery (as at 31 Dec 2017) No. of aircraft 120 105 100 90 80 68 60 40 27 20 0 2/2015 6
Slide 21: Highlights – Aviation (Cont'd)
Infrastructure Aviation Highlights – Aviation (Cont’d) Aircraft leasing portfolio as at 31 Dec 2017 Others Australia 3% 5% Others 16% America 15% A320 Asia and 51% Europe Middle-East B737 58% 19% 33% Aircraft type Geographical Spread Feb 2015 Jun 2016 Jun 2017 Dec 2017 No. of aircraft 27 68 90 105
Slide 22: Highlights – Aviation (Cont'd)
Infrastructure Aviation Highlights – Aviation (Cont’d) Beijing Capital International Airport (BCIA) 北京首都國際機場 Interest in H shares reduced from approx. 23.86% to 12.79% after partial disposal in Jan 2018 Remaining interest reclassified as an available-for-sale financial asset Partial disposal
Slide 23: Services
Services HKCEC Free Duty Shops Construction Gleneagles HK Hospital Transportation 23
Slide 24: AOP by Segment
Services AOP by Segment For the six months 2017 2016 Change ended 31 December (HK$’M) (HK$’M) (%) Facilities Management (84.4) 258.9 133 Construction & Transport 606.6 533.6 14 Strategic Investments 134.6 202.2 33 Total 656.8 994.7 34 24
Slide 25: AOP – Facilities Management
Services Facilities Management AOP – Facilities Management For the six months ended 31 Dec HK$’M 300 -3% 1HFY18 AOP 200 100 10% 259 0 1HFY17 AOP (84) (100) 2016 2017 25
Slide 26: Highlights – Facilities Management
Services Facilities Management Highlights – Facilities Management HKCEC Stable revenue growth Won Phase II contract to 2028 through a global tender exercise Free Duty HKCEC Performance undermined by sluggish sales and rising costs Traveller volume at land border crossing terminals down 4
Slide 27: Highlights – Facilities Management (Cont'd)
Services Facilities Management Highlights – Facilities Management (Cont’d) Gleneagles Hong Kong Hospital Soft opened on 21 Mar 2017, offering more than 35 specialties & subspecialties Around 1,000 resident staff on board, including doctors, nurses and allied health professionals More than 80
Slide 28: AOP – Construction & Transport
Services Construction & Transport AOP – Construction & Transport For the six months ended 31 Dec HK$’M 22% 700 (+14%) 600 1HFY18 AOP 500 400 21% 300 534 607 200 1HFY17 AOP 100 0 2016 2017 28
Slide 29: Highlights – Construction & Transport
Services Construction & Transport Highlights – Construction & Transport Construction AOP up 16% reflecting good job progress and rising gross profits Gross contract-on-hand: HK$89.6 billion Remaining value: HK$45.4 billion Transport Overall bus ridership down 6% due to rail network expan
Slide 30: AOP – Strategic Investments
Services Strategic Investments AOP – Strategic Investments For the six months ended 31 Dec HK$’M 5% 250 1HFY18 AOP 200 150 (-33%) 202 8% 100 135 1HFY17 AOP 50 0 2016 2017 30
Slide 31: New Investments – Roads and Aviation
Infrastructure New Investments Roads Location Project Total Investment Relevant Data Suiyuenan • 98km (dual 2-lane) RMB 1.1B Hubei Expressway • 2017 average daily traffic: 20K vehicles (30% effective interest) 隨岳南高速公路 • Concession ends in 2040 Aviation Net increase Location Project Fleet Size Asset
Slide 32: New Investments – Environment
Infrastructure New Investments Environment SUEZ NWS (“SNL”) Capacity Location Project Total Investment Expected Completion (m3/day) Shaanxi 5,000 RMB 80M 2019 Hainan Sewage 12,000 RMB 100M 2018 Jiangsu 40,000 RMB 84M 2018 Chongqing Derun Environment (“Derun”) Location Project Scale Total Investment
Slide 33: Outlook & Conclusions – Infrastructure
Outlook & Conclusions Infrastructure Roads Continuous growth in traffic volume and toll revenue Immediate contribution expected from Suiyuenan Expressway Environment Well-positioned to capture waste and environmental remediation opportunity Aviation Global demand for air travel underpi
Slide 34: Outlook & Conclusions – Services
Outlook & Conclusions Services HKCEC Won a global tender to operate Phase II until 2028 Construction Buoyant property demand and strong order book Gleneagles Hong Kong Hospital Satisfactory ramp-up 34
Slide 35: Disclaimer
Disclaimer NWS Holdings Limited (“NWS”) makes no representation or warranty of any kind, express, implied or statutory regarding the accuracy or completeness of the information contained. The information in this presentation is prepared solely for information purposes only. Users and readers are cau
Slide 36: Q&A Session
Q&A Session Connecting Lives Building Futures