New World Development Co. Ltd. · HKEX:17
New World Development — FY2019 Earnings Presentation
25 slides from New World Development's earnings presentation, Sep 25, 2019
Slide 1: Results announcement – 25 Sep 2019
Results announcement – 25 Sep 2019
Slide 2: Disclaimer - Important Notice
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 o
Slide 3: About the Group
About the Group HK stock code 17/ US ADR NDVLY HK Hang Seng Constituent Stock/ Shanghai Shenzhen connect stock • Founded in 1970, New World Development Company Limited ( "the Group", Hong Kong stock code: 00017) was publicly listed in Hong Kong in 1972 and is a constituent stock of the Hong Kong Han
Slide 4: Financial highlights
Financial highlights LU New world Development Company Limited
Slide 5: 2019 results highlights
2019 results highlights Revenues HK$76,764 mil +26% Strong booking of sales in HK Segment results HK19,978 mil +26% Underlying profit HK$8,814 mil +10% Core EPS HK$0.86 +8% Profit attributable to Primarily lower property HK$18,160 mil -22% shareholders of the company revaluation gains Full year DPS
Slide 6: Strategy update
Strategy update TU new World Development Company Limited
Slide 7: Leading player in GBA + twin IP-DP engines driving growth
Leading player in GBA + twin IP-DP engines driving growth New World Group CORE BUSINESS NWD & NWCL Property development ‧ Property investment NWS Roads ‧ Aviation ‧ Construction Strategic business HUMANSA ‧ Environmental ‧ Facilities Management • Grow core business to deliver synergy and sustainabil
Slide 8: Real estate + Ecosystem
Real estate + Ecosystem Non-property businesses forming the ecosystem enhancing the NWD core propositions 17.HK - New World Development 8
Slide 9: Investment highlights
Investment highlights 1. Proven underlying profit track record 2. Substantial growth delivering in investment properties 7. Recurrent contribution from NWS consistent DPS growth with growth potential HK 3x increase + CN 6x increase Victoria Dockside performance yet to be reflected in near term 3. Ab
Slide 10: 1. Proven track record in underlying profit…
1. Proven track record in underlying profit… Underlying profit (HK$ mil) 10,000 8,000 6,000 4,000 2,000 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 *Non-core asset disposal in Mainland China under NWCL in FY2016 17.HK - New World Development 10
Slide 11: 1. …delivering consistent dividend growth
1. …delivering consistent dividend growth Full year dividend and dividend yield 0.55 6.00% 5.00% 0.50 4.00% 0.45 3.00% 0.40 2.00% 0.35 1.00% 0.30 0.00% FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Full year dividend Dividend yield 17.HK - New World Development 11
Slide 12: 2. Growth in Hong Kong core rental GFA
2. Growth in Hong Kong core rental GFA Enhancing Hong Kong core IP portfolio (GFA ‘000 sq ft) 10,000 Total GFA New project 8,000 Over 3x 6,000 4,000 2,000 - Before FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 K11 ARTUS King Lam St 379,720 sqft Project K11 MUSEA 998,210 sqft 1,156,356 sqft
Slide 13: 2. Growth in Mainland China core rental GFA
2. Growth in Mainland China core rental GFA Enhancing Mainland China K11 portfolio (GFA ‘000 sq m) 1,500 Total GFA New project 1,250 Over 6x 1,000 750 500 250 - Before FY2019 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Beijing 21,294 sqm SZ Prince Bay SZ Prince Bay Beijing Shenyang Wuhan Ningbo
Slide 14: 3. Abundant saleable resources in HK
3. Abundant saleable resources in HK Key new residential projects launched Remaining Remaining No of units in FY2019 units SFA (sq ft) ARTISAN GARDEN (SOLD OUT) 294 - - TIMBER HOUSE (SOLD OUT) 240 - - ATRIUM HOUSE 313 99 40,608 REACH SUMMIT 504 22 7,777 Subtotal A 121 48,385 Remaining Remaining Inve
Slide 15: 3. Completion schedule
3. Completion schedule Fiscal year/ sq m FY2020 FY2019 FY2018 FY2019 DP Completion Non- Residential Total Carpark sq m residential DP excl. carpark 910,585 660,168 1,074,164 Guangzhou 161,127 - 161,127 - Foshan 34,751 942 35,693 49,941 DP incl. carpark 1,180,161 744,327 1,105,441 Yiyang 35,092 1,139
Slide 16: 3. Unrecognised sales revenue in HK
3. Unrecognised sales revenue in HK Attributable proceeds Sold to be booked in FY2020 Total no of units HK$ mil Sold to be booked MOUNT PAVILIA 86 2,770 contracted sales in HK (HK$mil) The Masterpiece 3 339 7,000 FLEUR PAVILIA 32 276 THE PAVILIA HILL 1 127 6,000 Others and carparks 528 5,000 Total 4
Slide 17: 3. Unrecognised sales revenue in Mainland China
3. Unrecognised sales revenue in Mainland China Sold to be booked/ FY2020 FY2021 Total proceeds RMB mil Southern region 2,263 - Central region 52 85 Eastern region 42 202 Northern region 209 - North-eastern region 613 48 Total 3,179 335 • As at 31 Aug 2019 RMB3.6 bn to be recognised from Mainland Ch
Slide 18: 4. The Greater Bay Area (GBA) - Opportunities
4. The Greater Bay Area (GBA) - Opportunities Greater Bay Area economy to reach US$3.6 trillion by 2030 Source: SCMP/ HSBC/ CBRE of the national GDP 71 mil Core Cities Hong Kong, Macao, Guangzhou, Shenzhen 12% combined population 11 cities mega- USD volume of air freight traffic economy 23,000 to em
Slide 19: 4. The Greater Bay Area (GBA) - Strategy
4. The Greater Bay Area (GBA) - Strategy Total GFA Over 50% of our core landbank in GBA Region/ sq m ‘000 (excl carpark) Southern region 2,668 GFA 1.5 mil sq m obtain in GBA since 2016 Central region 1,140 8/2016 12/2016 10/2017 11/2018 9/2019 GZ SZ SZ GZ GZ Eastern region 489 Panyu Qianhai Prince B
Slide 20: 5. Significant progress in non-core disposals
5. Significant progress in non-core disposals Actual/expected Disposal under NWD – FY2019 Total consideration completion date Two industrial projects in Kwun Tong FY2019 Car parking spaces in Riviera Gardens FY2020 HK$2.3 bn Potential resources A commercial property on Hong Kong Island FY2020 NWD+NW
Slide 21: 6. Liquidity and capital resources
6. Liquidity and capital resources Maturity profile of borrowings Currency profile of borrowings Floating vs Fixed* 11% 5% 27% 23% As at 16 Sep 38% Weighted 2019, 80% of Majority of average those the bonds interest rate maturing issued are in 34% within 1 year USD 3.65% 62% refinanced 72% 28% within
Slide 22: 7. NWS core business growth
7. NWS core business growth Core business portfolio Road 15 toll roads in PRC ~acquired Sui-Yue Expressway + Hunan Changliu Expressway Aviation Goshawk Aviation Limited provides commercial aircraft leasing and management services ~Together with 40 aircraft directly ordered from Airbus & Boeing, tota
Slide 23: 7. NWS core business growth & strategy
7. NWS core business growth & strategy 75% of NWS FY2019 AOP are contributed by the Core Business Road 7% * Continue to acquire quality roads assets with strong cashflow and 38% 14% upside potential to sustain growth 26% 13% Aviation 11% * Multiple sourcing channel to propel sustainable growth via s
Slide 24: Outlook
Outlook The Belt and Road Initiative and the development of the Guangdong-Hong Kong- Macao Greater Bay Area advocated by the State will present Hong Kong with enormous opportunities for development. The Group is well-positioned to enhance value for stakeholders and the society through business deplo
Slide 25: Results announcement – 25 Sep 2019
Results announcement – 25 Sep 2019
New World Development Company — FY2019 Earnings Presentation on 6ix