Slide 1: FY 2016 Annual Results Investor Presentation
FY 2016 ANNUAL RESULTS I N V E S T O R P R E S E N T A T I O N 17 MARCH 2017
Slide 2: Agenda
2 1. COMPANY KEY STRATEGIES & FY 2016 RESULTS HIGHLIGHTS 2. DEVELOPMENT PROPERTIES 3. INVESTMENT PROPERTIES 4. FINANCIAL POSITION 5. APPENDIX
Slide 3: Company Key Strategies & FY 2016 Results Highlights
3 1. COMPANY KEY STRATEGIES & FY 2016 RESULTS HIGHLIGHTS
Slide 4: Company Key Strategies
4 COMPANY KEY STRATEGIES 1. Accelerate sales in 2nd and 3rd tier cities in PRC 2. Move resources meaningfully back into 1st tier cities in PRC 3. Focus on premium residential properties in HK 4. Increase recurring revenues and profits from mixed-use developments
Slide 5: FY 2016 Results Highlights
5 FY 2016 RESULTS HIGHLIGHTS • Total contracted sales set record in FY 2016. Totaled $26.4B (HK: $12.2B ; PRC: 14.2B), +110% YoY and achieved 203% of full year sales target of $13.0B. • Total recurrent revenue and recurrent gross profit +9.0% YoY and +9.4%, respectively. • Shopping mall at Hangzhou
Slide 6: Results Highlights
6 RESULTS HIGHLIGHTS HK$ million FY 2016 FY 2015 Change Turnover 12,991 10,393 +25% Gross profit 5,856 3,911 +50% Share of results of associates 1,801 2,018 -11% Underlying profit 3,671 3,481 +5% Net increase in fair value in investment properties 2,866 2,049 +40% Reported profit 6,537 5,530 +18% Ea
Slide 7: Results Highlights
7 RESULTS HIGHLIGHTS HK$ million Turnover Gross Profit Gross Margin * Recurrent revenue Note FY 2016 FY 2015 Change FY 2016 FY 2015 Change FY 2016 FY 2015 Property sales 7,204 5,085 +42% 2,463 1,210 +103% 34% 24% HK N1 549 1,727 -68% 155 608 -75% 28% 35% PRC N2 6,655 3,358 +98% 2,308 602 +283% 35% 1
Slide 8: Development Properties
8 2. DEVELOPMENT PROPERTIES
Slide 9: Development Properties Overview
9 DEVELOPMENT PROPERTIES OVERVIEW Contracted Sales FY 2016 FY 2015 HK * KPL’s Interest HK$ HK PRC 26.4B +110% Contracted Sales $12.2B $5.8B Saleable Area Sold Approx. 698,000 s.f Approx. 346,000 s.f Recognized Sales Subsidiary projects: $0.5B Subsidiary projects: $1.7B Associate projects: $0.6B* Ass
Slide 10: Development Properties – HK
10 DEVELOPMENT PROPERTIES – HK Sold $12.2B in HK during 2016 Accumulative sales performance up to 28 Feb 2017: Mantin The Heights Bloomsway • Total units: 1,429 • Total units: 1,100 • 1st launch in 4/2016 • 1st launch in 11/2015 • Sold 625units or 44% of total units • Sold 885 units or 80% of total
Slide 11: Development Properties – PRC
11 DEVELOPMENT PROPERTIES – PRC Asset divestiture in 2nd and 3rd tier cities Project Chengdu Arcadia Court Ph 3 In 7/ 2016, the Group divested its entire investment in the Phase III development Disposals to an independent third party. Shares transfer was completed in October 2016. Changsha Arcadia C
Slide 12: Investment Properties
12 3. INVESTMENT PROPERTIES
Slide 13: Investment Properties - Overview
13 INVESTMENT PROPERTIES - OVERVIEW Total Property Rental Continue to grow recurrent income on prime-quality assets (includes attributable rental income from associates) HK$ million 4.4B +6% PRC Six Mixed-Use Properties in the CBDs of Major Cities 4.1B 3,220 +3% PRC 3,117 HK HK Stable Contribution o
Slide 14: Investment Properties – PRC Completed Properties
14 INVESTMENT PROPERTIES – PRC COMPLETED PROPERTIES PRC Property Rental Beijing Kerry Centre Occupancy (@ Dec 2016) * 98% Yield on Cost * 20% Gross rental revenue: HK$3.2B GFA(100%): 1.5M s.f * (includes attributable rental income from associates) Completion 1998 Attributable GFA 7.5M s.f KPL’s inte
Slide 15: Investment Properties – New Launch in 2016
15 INVESTMENT PROPERTIES – NEW LAUNCH IN 2016 Hangzhou Kerry Centre March 2017
Slide 16: Hangzhou Kerry Centre
16 HANGZHOU KERRY CENTRE Located at the intersection of Yan’an Road and Qingchun Road, adjacent to the West Lake Retail Mall Complex As at end 2/2017: • 95% area committed • 80% are in operation Trade Mix by GFA F&B Shopping Mall Fashion & Accessories, 24% soft opened on 29 Nov 2016 Children's Retai
Slide 17: Investment Properties – Under Development
17 INVESTMENT PROPERTIES – UNDER DEVELOPMENT QIANHAI MARKET By the end 2016, there are 125,000 enterprises registerd at Qianhai, The market price for apartment range from RMB89,000-102,000/s.m, and office price range from RMB74,000-95,000/s.m. Project Summary Qianhai #1 Qianhai #2 Acquisition Jan-20
Slide 18: Investment Properties – HK
18 INVESTMENT PROPERTIES – HK HK Property Rental Occupancy FY 2016 Remarks (12/2016) Rental Gross rental revenue: HK$1.2B Revenue (includes attributable rental income from associates) Apartment 98% +44% Increase in rental revenue Attributable GFA 2.8M s.f was mainly related to the resumed contributi
Slide 19: Financial Position
19 4. FINANCIAL POSITION
Slide 20: Financial Position
20 FINANCIAL POSITION As at 31 As at 31 Debt Maturity Profile HK$ million Dec 2016 Dec 2015 Change Total Debt : $45,333 M Successfully entered into a HK$10B dual-tranche club loan Total Debt 45,333 37,046 +22% in early 2016 for refinancing purposes HK$ million Cash and bank Fixed Rate Bonds Bank Loa
Slide 21: Appendix
21 5. APPENDIX A. FY 2016 Contracted Sales - HK B. FY 2016 Contracted Sales - PRC C. Major Properties Under Development - HK D. Major Properties Under Development - PRC E. PRC Major Completed Mixed-Use Properties F. Land Bank – Overview / HK / PRC
Slide 22: A. FY 2016 Contracted Sales – HK
22 A. FY 2016 CONTRACTED SALES – HK Projects on sale KPL’s Total Units Accumulative Inventory ASP Sales Completion (KPL’s Interest) interest project sold in units sold as at as at 31 Dec achieved proceeds in (%) units FY 2016 31 Dec 2016 2016 (units) in FY 2016 FY 2016^ HK$ psf HK$ bn NEW LAUNCH DUR
Slide 23: B. FY 2016 Contracted Sales – PRC
23 B. FY 2016 CONTRACTED SALES – PRC Major projects on sale Product Contracted GFA Sold ASP KPL’s (KPL’s Interest) type sales ^ s.m achieved interest RMB’M in FY 2016 RMB psm 1 Nanjing Jinling Arcadia Court 南京金陵‧雅頌居 R 2,391 55,800 42,800 100% 2 Hangzhou Castalia Court 杭州云荷廷 R 2,248 85,400 26,300 100
Slide 24: C. Major Properties Under Development – HK
24 C. MAJOR PROPERTIES UNDER DEVELOPMENT – HK Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA** (%) (s.f.) FOR SALE PROPERTIES 1 Mantin Heights Ho Man Tin R Superstructure work in 1H 2017 100 1,142,168 progress 2 The Bloomsway So Kwun Wat R Superstructure work
Slide 25: D. Major Properties Under Development – PRC
25 D. MAJOR PROPERTIES UNDER DEVELOPMENT – PRC Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributa (%) ble GFA (s.f.) MAJOR MIXED-USED DEVELOPMENT 1 Hangzhou Kerry Centre Hangzhou R Completion verification in progress 1H 2017 75 275,005 2 Shenyang Kerry Centre S
Slide 26: D. Major Properties Under Development – PRC (Con't)
26 D. MAJOR PROPERTIES UNDER DEVELOPMENT – PRC (CON’T) Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) OTHER INVESTMENT PROPERTIES (CON’T) 9 Shenzhen Qianhai Complex Shenzhen H/O/C Schematic design in progress 2020 25 331,172 Development 2
Slide 27: E. PRC Major Completed Mixed-Use Properties
27 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES 31 Dec 2016 GFA & Occupancy Attri GFA (000s s.f.) Beijing Shanghai Shenzhen Tianjin Hangzhou Fuzhou Total Occupancy Office 711 1,453 1,552 --- 100 --- 3,816 97% Commercial 98 1,096 212 428 812 12 2,658 93% Apartment 277 774 --- --- --- --- 1,051 89% Tot
Slide 28: E. PRC Major Completed Mixed-Use Properties (Con't)
28 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) Occupancy rate (by segment) As at 31 Dec 2016 As at 31 Dec 2015 Serviced Apartment 97% 91% Office 98% 98% 1 Beijing Kerry Centre Commercial 98% 100% Average 98% 96% Serviced Apartment 90% 93% Office 100% 99% 2 Jing An Kerry Centre Ph 1 Commercia
Slide 29: E. PRC Major Completed Mixed-Use Properties (Con't)
29 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) Jing An Kerry Centre, Shanghai Puxi GFA ( million s.f.) 3.7M s.f Commercial 1.0 • Located in the heart of Shanghai’s Nanjing Road business Office 1.7 district Apartment 0.2 • A pre-eminent shopping venue and exclusive office Hotel 0.8 address in
Slide 30: E. PRC Major Completed Mixed-Use Properties (Con't)
30 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) Beijing Kerry Centre 2.2M s.f GFA ( million s.f.) Commercial 0.1 • Continues to be an iconic presence at the heart of Beijing Office 1.0 • Located in the Chaoyang district, the city's commercial Apartment 0.4 and financial center and within the
Slide 31: E. PRC Major Completed Mixed-Use Properties (Con't)
31 E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) Tianjin Kerry Centre Ph 1 1.7M s.f GFA ( million s.f.) Commercial 0.9 • Mixed-use development located on the east bank of the Hotel 0.8 Haihe CBD in Hedong District Total 1.7 • Phase I of the development includes a hotel, upscale residences for
Slide 32: F. Land Bank – Overview
32 F. LAND BANK – OVERVIEW Total Property Portfolio Attributable GFA: Approx. 44.5M s.f. (as of 31 Dec 2016) PUD Held for sale 59% Macau 6% 5% Hotel Overall – Overseas Overall – PRC 73% 8% 9% By Type By Location HK 13% Completed IP 27% Hotel Macau 9% Residential 6% 63% Apartment PUD – 1% PRC PUD – O
Slide 33: F. Land Bank – HK
33 F. LAND BANK – HK HK Land bank Attributable GFA (‘000 s.f) Hotel 1% Commercial 22% Completed Investment Properties 2,782 Commercial 1,219 5.6M s.f in Residential 49% Office 841 attributable Office GFA Apartment 722 15% Properties under development 2,715 Apartment 13% Completed properties held for
Slide 34: F. Land Bank – PRC
34 F. LAND BANK – PRC PRC Land bank Attributable GFA (‘000 s.f) Hotel 14% Completed Investment Properties 7,525 Commercial 17% Commercial 2,658 32.7M s.f Residential 41% Office 3,816 attributable GFA Apartment 1,051 Office Properties under development 19,038 24% Apartment 4% Completed properties hel
Slide 35: Disclaimer
35 DISCLAIMER The information in this presentation is for personal, non-commercial reference and general information purposes only and should not be relied upon for investment decision purposes. The information in this presentation, including without limitation any stock price, market data informati