Far East Consortium International Limited · HKEX:35
Far East Consortium International — H1 FY2023 Earnings Presentation
51 slides from Far East Consortium International's earnings presentation, November 2022
Slide 1: 2022/2023 Interim Results
2022/2023 Interim Results November 2022
Slide 2: Disclaimer
Disclaimer This document has been prepared by Far East Consortium International Limited (the “Company”) solely for information purposes. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to purchase or subscrib
Slide 3: Table of Contents
Table of Contents 1. FY2023 Interim Results Summary 2. Review of Operations 3. Prospects 4. Appendices 3
Slide 4: 1. FY2023 Interim Results Summary
1. FY2023 Interim Results Summary Concept of Queen’s Wharf Brisbane 4
Slide 5: Key Theme of 1H FY2023
Key Theme of 1H FY2023 Growth of core businesses on a sustainable basis • Adjusted revenue up 13.0% to HK$3.5 bn and adjusted cash profit up 7.3% to HK$897 mn • Property development: Adjusted revenue for property development was slightly up 3.3% to HK$1.9 bn. Cumulative presales and unbooked contrac
Slide 6: Key Theme of 1H FY2023
Key Theme of 1H FY2023 Recurring Income Businesses (Hotel/Car Park/Gaming) enjoying a strong recovery • Recurring revenue up 33.5% to HK$1.4 bn • Hotel business well positioned for re-opening of global travel • 2 new hotels to open in 2H FY2023: Ritz-Carlton / Dorsett, both in Melbourne • Organic gr
Slide 7: Delivering Growth Sooner
Delivering Growth Sooner Recent Completions Recent/Upcoming Launches Upcoming Completions/Openings • Mount Arcadia • Victoria Riverside (Tower A) • West Side Place (Towers 3 and 4) • West Side Place (Towers 1 and 2) • Collyhurst Village • New Cross Central • MeadowSide (Plots 2, 3 and 5) • Kai Tak R
Slide 8: Strong Property Development Pipeline in the Coming Years
Strong Property Development Pipeline in the Coming Years FY2023 FY2025 FY2024 FY2026 • Kai Tak Development - • Sai Ying Pun HK Office • Kai Tak Residential(3) SG • Hyll on Holland(2) • Cuscaden Reserve(4) • MY Dorsett Place Waterfront Subang(3) • Hornsey Town Hall • Collyhurst Village • Victoria Riv
Slide 9: Diversification Yields Resilience
Diversification Yields Resilience HK$ mn 1H FY2023 1H FY2022 % change Revenue 3,026 3,120 -3.0% Adjusted revenue(1) 3,526 3,120 +13.0% Gross profit margin 35.4% 31.6% N/A Profit before tax(2) 860 1,385 -37.9% Net profit attributable to shareholders(2) 571 1,071 -46.7% Adjusted cash profit(3) 897 836
Slide 10: Solid GP Margins With Significant Improvement In Recurring Income Businesses
Solid GP Margins With Significant Improvement In Recurring Income Businesses 1H FY2023 1H FY2022 Gross profit Gross profit Gross profit Gross profit Revenue Revenue (after depreciation) (before depreciation) (after depreciation) (before depreciation) HK$ mn HK$ mn Margin HK$ mn Margin HK$ mn HK$ mn
Slide 11: Adverse Foreign Exchange Movement Impacted NAV and Profitability
Adverse Foreign Exchange Movement Impacted NAV and Profitability • Movement in foreign currencies impacted balance sheet position • Assuming exchange rates remained constant, net asset value(1) would have been HK$2,830 million higher as at 30 September 2022 Rates as at 30.9.2022 31.3.2022 % change A
Slide 12: Aims to maintain long-term dividends and NAV/share growth
Aims to maintain long-term dividends and NAV/share growth • Resilient NAV despite adverse foreign currency movement • Continuing to deliver a sustainable and attractive dividend is a priority for the Group 10-Year NAV CAGR : 7.5% 10-Year DPS CAGR: 12.8% 22.0 22.0 12.56 20.0 12.08 11.90 19.0 19.0 11.
Slide 13: Active Management of Balance Sheet to Navigate the Challenging Period
Active Management of Balance Sheet to Navigate the Challenging Period • Disposals of non-core assets and presales moving to completion will strengthen liquidity and balance sheet position • Making efforts to reduce gearing and interest costs HK$ mn As at 30.9.2022 As at 30.3.2022 Due within 1 year(1
Slide 14: Short Term Debts Analysis and Liquidity Management
Short Term Debts Analysis and Liquidity Management • The Group will aim to reduce debt level in coming months amidst rising interest rate • Completion of major projects and disposal of assets will reduce debt level Bank loans and notes due within 1 year as at Status HK$ mn 31.3.2022 4.5% 2023 Notes
Slide 15: A Steady Flow of Liquidity
A Steady Flow of Liquidity • Available existing liquidity of HK$15 bn (cash position and undrawn facilities) far exceeds the capex of HK$1.8 bn • Presales and unbooked contracted sales of HK$18.0 bn provides visibility on future cash inflow streams • Unencumbered hotels and completed residential inv
Slide 16: 2. Review of Operations: Property Development
2. Review of Operations Property Development West Side Place, Melbourne 16
Slide 17: Recent Completion – MeadowSide, Manchester
Recent Completion – MeadowSide (Plots 2, 3 and 5), Manchester An Attractive Mix of City Living, Urban Amenities and Parkland Peace in the City Centre A landmark project located in the heart of the NOMA Quarter, north of Manchester’s city centre. The projects overlook Angel Meadow Park, the largest g
Slide 18: Recent Completion – The Star Residences (Tower 1), Gold Coast
Recent Completion – The Star Residences (Tower 1), Gold Coast Live in the Heart of Gold Coast’s World-Class Integrated Resort Located at The Star Gold Coast on Broadbeach Island, Tower 1 is one of 5 total towers in this mixed-use development. The site is adjacent to Pacific Fair Shopping Centre and
Slide 19: Upcoming Completion – West Side Place (Towers 3 and 4), Melbourne
Upcoming Completion – West Side Place (Towers 3 and 4), Melbourne A New Height of Cosmopolitan Living These two towers make up Stage 2 of West Side Place, a major mixed-use development located next to our existing Upper West Side development. It is proudly positioned in Melbourne’s CBD grid and in i
Slide 20: Upcoming Completion – Hornsey Town Hall, London
Upcoming Completion – Hornsey Town Hall, London An Artistic Building Rooted in History An iconic art deco building located in the heart of Crouch End, with excellent transportation connectivity to Central London. The project comes with options for many different lifestyles, offering an arts centre,
Slide 21: Upcoming Completion – New Cross Central, Manchester
Upcoming Completion – New Cross Central, Manchester Stylish Design Inspired by Manchester’s History and Character Located in the centre of a lively, up-and-coming neighbourhood in Manchester, this development is surrounded by indie shops and F&B spaces. The homes feature red brick exteriors with int
Slide 22: Presales Offers Good Cash Flow Visibility
Presales Offers Good Cash Flow Visibility • Over HK$60 bn of saleable residential development and inventory As at 30.09.2022 Location Cumulative attr. presales Expected attr. SFA(1) Expected attr. GDV(2) Expected Cumulative presale Projects under presale (HK$'M) (sq.ft.) (HK$'M) Completion as % of G
Slide 23: Recent Launch – Victoria Riverside (Tower A)
Recent Launch – Victoria Riverside (Tower A) City Gardens’ unique design offers exclusive enjoyment in Manchester Set in between the greenery of the Irk River Valley and the hustle and bustle of the city centre. Its towering at a breathtaking 37 storeys and occupy the tallest of the three towers of
Slide 24: New Launch in 2H FY2023 – Collyhurst Village
New Launch in 2H FY2023 – Collyhurst Village Modern residential neighborhood in close proximity to Manchester City Centre Located 1 mile from Manchester city centre and alongside a new community park. Collyhurst Village is renewing the community spirit and pride of a uniquely inspiring neighbourhood
Slide 25: Upcoming Launch – Kai Tak Residential
Upcoming Launch – Kai Tak Residential Significant New Development Along the Waterfront The development is at the heart of the Hong Kong government’s redevelopment plans, providing residents with access to upgraded infrastructure. Its location offers a tranquil sea view for rest and relaxation away f
Slide 26: 2. Review of Operations: Hotel Operations & Management
2. Review of Operations Hotel Operations & Management Dorsett Gold Coast 26
Slide 27: Strong Performance as Global Economy Re-opens
Strong Performance as Global Economy Re-opens • Lifting of travel restrictions increased the demand for hotel rooms • Continue to refine the operating business model to best serve our customers Dorsett Group 1H FY2023 1H FY2022 YoY change Notes: Hong Kong (1) Excludes Dao by Dorsett AMTD, which is O
Slide 28: A Successful Recent Opening – Dao by Dorsett West London
A Successful Recent Opening – Dao by Dorsett West London New Build Aparthotels with Slick and Chic City Interiors • As the first Dorsett property to adopt an aparthotel model, Dao by Dorsett West London represents a fresh take on the Group’s hotels • Comprises one or two-bedroom, fully-serviced apar
Slide 29: Hotel Rebranding in 1H FY2023 – Dao by Dorsett AMTD Singapore
Hotel Rebranding in 1H FY2023 – Dao by Dorsett AMTD Singapore First Dao by Dorsett Hotel in Asia • Rebranding Oakwood Premier AMTD Singapore to Dao by Dorsett AMTD Singapore in July 2022 • Located in the heart of Singapore’s Central Business District • The first “Dao by Dorsett” hotel in Asia offeri
Slide 30: Pipeline Hotels to Add to Growth Momentum
Pipeline Hotels to Add to Growth Momentum • 8 new hotels under construction in Australia, the UK and Hong As at 30.9.2022 As at 31.3.2025 Kong with approximately 2,600 rooms in the next 3 years 8,223 10,808 • Dao by Dorsett West London opened on 1 June 2022, adding to cash flow rooms rooms • Dorsett
Slide 31: New Hotel Addition in 2H FY2023 – Dorsett Melbourne
New Hotel Addition in 2H FY2023 – Dorsett Melbourne Hotel of choice for business and leisure travelers • Located within the West Side Place development precinct of the Melbourne CBD and occupying levels 3 to 8 of West Side Place (Tower 3) • Surrounded by over 3,000 sqm of retail space and offering c
Slide 32: New Hotel Addition in 2H FY2023 – Ritz-Carlton Melbourne
New Hotel Addition in 2H FY2023 – Ritz-Carlton Melbourne An Expression of Timeless Luxury • Occupies the top 18 floors of West Side Place (Tower 1), Melbourne • The tallest hotel in Australia and the Southern Hemisphere • Offering stunning and expansive views over the Docklands bay and cityscape • S
Slide 33: Upcoming Hotel Completion – Dao by Dorsett Hornsey
Upcoming Hotel Completion – Dao by Dorsett Hornsey A unique combination of contemporary and period furnishings • Located at the heart of Crouch End, adjacent to shops and restaurants on a busy high street, while having good transport link to central London • Part of the restored Grade II* listed Tow
Slide 34: Kai Tak Development – Project Progressing Well
Kai Tak Development – Project Progressing Well The HK Government’s most significant infrastructure investment in recent decades • Total area: over 320 hectares • Kai Tak Outline Zoning Plan: A mix of community, housing, business, entertainment, tourism and infrastructural uses • Town Planning Board
Slide 35: 2. Review of Operations: Car Park Operations
2. Review of Operations Car Park Operations Care Park Control Room, Melbourne 35
Slide 36: Loosened Restrictions Led to a Strong Recovery
Loosened Restrictions Led to a Strong Recovery • Car park operations gradually return to 30.9.2022 31.3.2022 normalcy and made a strong recovery, with No. of No. of No. of No. of revenue increasing 17.9% year-on-year to Car Park Bays Car Park Bays approximately HK$375 mn Australia • Continue to crys
Slide 37: 2. Review of Operations: Gaming Operations
2. Review of Operations Gaming Operations PALASINO Furth im Wald, Czech Republic 37
Slide 38: Queen’s Wharf Opening to Add to Income Stream
Queen’s Wharf Opening to Add to Income Stream Casino Licence Terms • 99 years with a 25-year casino exclusivity period within 60 kilometers from the Brisbane CBD • 2,500 slots & unlimited gaming tables (including electronic derivations) A World-Class Integrated Resort Details • Opening of casino por
Slide 39: PALASINO – Rebound after Lifting Restriction
PALASINO – Rebound after Lifting Restriction 3 casinos in the Czech Republic features gaming tables and slot machines • Despite being temporarily closed for two month due to COVID-19 in 1H FY2022, revenue from gaming operations rebound 70.5% to approximately HK$147 million(1) in 1H FY2023 • Growth i
Slide 40: Leveraging Our Partnership with The Star
Leveraging Our Partnership with The Star • Ongoing planning for landmark residential and hotel towers adjacent to The Star Sydney, to • Reviewing portfolio of be operated by The Ritz-Carlton hotel assets in Australia • FEC’s stake: 33.3% together with The Star • Hotel/Residential The Star Pyrmont Sy
Slide 41: 2. Review of Operations: Other Businesses
2. Review of Operations Other Businesses MeadowSide, Manchester 41
Slide 42: BC Invest – Another Year of Strong Growth with More to Come
BC Invest – Another Year of Strong Growth with More to Come Overview Catalysts for FY2023 • AUM increase driven by organic growth and the Mortgageport • Organic growth remains strong acquisition • Considering more acquisitions if the fit is right • Entrance into UK market met with a positive respons
Slide 43: 3. Prospects
3. Prospects The Star Residences, Gold Coast 43
Slide 44: Outlook – Property Development and Hotels
Outlook – Property Development and Hotels Property Strong presales and unbooked sales and pipeline provides good Development visibility • Planning new launches, with steady completions and settlements in coming years - Launch of Collyhurst Village and Kai Tak Residential - Settlements at West Side P
Slide 45: Outlook – Car Park, Gaming and BC Invest
Outlook – Car Park, Gaming and BC Invest Car Park Leveraging existing car park portfolio to grow management business Operations • Continued improvement in performance expected as restrictions loosen • Significant opportunities to dispose more non-core assets • Winning new management contracts Gaming
Slide 46: Enhance ESG Efforts to Create Long-Term Value
Enhance ESG Efforts to Create Long-Term Value Strengthen Governance to Improve ESG Performance Formed key internal committees within the ESG Working Group to support the ESG Steering Committee Create strategic ESG Direction for the Group Developed KPI’s with Introduced new Refining Group-level input
Slide 47: Reputable Awards for IR and ESG Work
Reputable Awards for IR and ESG Work 1H FY2023 FinanceAsia’s Asia’s Best Questar Awards 2022 Companies 2022 • Interactive Annual Report: Overall Presentation – Asia/Pacific Gold • Best CEO in Hong Kong • Interactive Annual Report: Corporate Social Responsibility Report Bronze • Best Small-cap Compan
Slide 48: Thank You
Thank You Questions & Answers For more information, please contact: Investor Relations Department: ir@fecil.com.hk Or visit the Company’s website: www.fecil.com.hk FEC Official WeChat 48
Slide 49: 4. Appendices
4. Appendices Mount Arcadia, Hong Kong 49
Slide 50: Significant Hidden Value in FEC’s Hotel Portfolio
Significant Hidden Value in FEC’s Hotel Portfolio Capital Value @ Revaluation City / Country Description Rooms 31.3.2022 Surplus Notes: (HK$ mn) (HK$ mn) Hotels in operation (1) The property commenced Hong Kong 1 Dorsett Wanchai Hong Kong Amid Wanchai and Causeway Bay 454 4,000 3,771 operations on 1
Slide 51: Details of Major Investment Properties
Details of Major Investment Properties Total GFA Total GFA Current Investment Properties (sq. ft.) Pipeline Investment Properties (sq. ft.) (1) FEC Building, Central, Hong Kong 3,000 Queen's Wharf Brisbane , Brisbane 213,100 FEC Building, Nathan Road, Hong Kong 38,700 Kai Tak Development - Office, H
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