New World Development Co. Ltd. · HKEX:17
New World Development — H1 FY2021 Earnings Presentation
28 slides from New World Development's earnings presentation, Feb 26, 2021
Slide 1: 1HFY2021 Interim Presentation Press Conference
1HFY2021 INTERIM PRESENTATION PRESS CONFERENCE 26 February 2021 0
Slide 2: Key Highlights: 1HFY2021 Summary Financials
KEY HIGHLIGHTS 1HFY2021 SUMMARY FINANCIALS Ongoing recovery from the bottom| Top line expansion with stringent cost control Profit Attributable To Revenues Underlying Profit Shareholders HKD 35,577M Recurring HKD 1,013M HKD 3,719M +10% YoY SG&A Expenses -0.4% YoY -5% YoY 12% YoY Interim DPS Share Bu
Slide 3: Property Development
PROPERTY DEVELOPMENT 2
Slide 4: Resilient Performance
PROPERTY DEVELOPMENT RESILIENT PERFORMANCE Healthy revenue growth amidst challenging environment Revenue by Region Revenue increase 11,987 12,795 7% YoY Primarily driven by Ningbo New World Plaza Land (寧波新世界) 8,320 10,030 Major booking in 2HFY2021 • HK: Artisan Garden; Atrium House, Timber House 3,6
Slide 5: Contracted Sales Performance in Hong Kong
PROPERTY DEVELOPMENT CONTRACTED SALES PERFORMANCE IN HONG KONG 1HFY2021 contracted sales of HKD26.3bn exceeded annual target HKD20bn THE PAVILIA FARM: The New Media King 888 LAI CHI KOK ROAD: Launch Three-phase development atop Tai Wai station Grade-A Office Building Located in West Kowloon 3,090 2M
Slide 6: Contracted Sales Performance in Mainland China
PROPERTY DEVELOPMENT CONTRACTED SALES PERFORMANCE IN MAINLAND CHINA Contracted sales on track of target – maintaining strong presence in GBA Major GBA Projects Development Sales Gross Contracted Sales (RMB M) Prince Bay (太子灣), Shenzhen RMB 19,800 31,560 sqm 18,200 Apartment Office 2.5B 16,300 GBA Yi
Slide 7: Wong Chuk Hang Phase: The Southside
HK PROPERTY DEVELOPMENT WONG CHUK HANG PHASE 5 Atop MTR station | New ticket king title to continue The Southside CBD2 only MEGA comprehensive development project on HK Island in recent years NWD-LED Total GFA Consortium 636,000 sqft Land Premium Units 4.4% lower 1,050 than phase 4 Average size of H
Slide 8: North Point State Theatre Building
HK PROPERTY DEVELOPMENT NORTH POINT STATE THEATRE BUILDING Conserving Hong Kong’s last surviving movie palace | Heritage revitalization Grade 1 Historical Building Hong Kong’s 68-year old iconic state theatre We will do our best to conserve and restore this iconic building to its original glamor and
Slide 9: Property Investment
PROPERTY INVESTMENT 8
Slide 10: Stable Performance
PROPERTY INVESTMENT STABLE PERFORMANCE Healthy performance growth | Maintain high occupancy rate with improving client mix Gross Rental Income by Region K11 Art in One campaign drives 15-20% growth in footfall New Prominent Tenants to improve client mix 2,315 2,188 1,344 1,440 844 875 1HFY2020 1HFY2
Slide 11: Hong Kong K11 Is Well Positioned for Economy Recovery
PROPERTY INVESTMENT HONG KONG K11 IS WELL POSITIONED FOR ECONOMY RECOVERY Others see crisis, we see opportunity - K11 grabbing market share across the board during COVID Hong Kong K11 Malls Strong occupancy level throughout COVID period Mall Sales YoY % K11 Musea K11 Art Mall HK HK K11 HK Retail Mar
Slide 12: Outperformed K11 China Mall Sales
PROPERTY INVESTMENT OUTPERFORMED K11 CHINA MALL SALES RIDE ON CONSUMPTION UPGRADE AND DOMESTIC CIRCULATION Started by Wuhan K11 opening fully captured revenge consumption Total KLUB11 China member China K11 Malls 134,000 sqm Mall Sales YoY % China K11 China Retail Market ↑ 30% total GFA in Hankou Ho
Slide 13: Sky Unveils: An Attraction at the Heart of GBA
PROPERTY INVESTMENT 11 SKIES UNVEILS: AN ATTRACTION AT THE HEART OF GBA Connect 31.6M GBA population within 1.5 hours - Shenzhen, Zhuhai, Zhongshan, Jiangmen, Foshan Hong Kong’s largest hub for retail, dining and entertainment Total GFA 3.8M Sqft Opening in phases 2022-2025 Retail & Dining Shops Din
Slide 14: Steady Pipeline Growth of K11
PROPERTY INVESTMENT STEADY PIPELINE GROWTH OF K11 Acceleration in commercial property management with potential asset light opportunities K11 Development Properties K11 Development Properties (continued) 1 1 Status Site Type GFA (sqm) Status Site Type GFA (sqm) Hong Kong K11 34,000 Hong Kong Kai Tak
Slide 15: Corporate Actions
CORPORATE ACTIONS 14
Slide 16: Non-Core Disposals
FINANCIAL & CAPITAL MANAGEMENT NON-CORE DISPOSALS HKD12.8bn1 of disposals in YTD FY2021 | Likely to beat full year target of HKD13-15bn August 2020 December 2020 January 2021 Bus Business in HK Office Tower in Wuhan Post-1HFY2021balance Environment Asset sheet event in China HKD3.2bn RMB1.3bn HKD6.5
Slide 17: Capital Financing Snapshot
CORPORATE ACTIONS CAPITAL FINANCING SNAPSHOT Decreasing cost of financing and net gearing Cost of financing and net gearing both decreased as at 31 December 2020 2.93% 40.4% Cost of financing Net gearing ratio -1.1 ppts vs 30 Jun 2020 -1.2 ppts vs 30 Jun 2020 -0.8 ppts vs 31 Dec 2019 -1.8 ppts vs 31
Slide 18: ESG
ESG 17
Slide 19: ESG Integration: Emerging Global Leader
STRATEGIC INTIATIVES ESG INTEGRATION: EMERGING GLOBAL LEADER Creating Shared Value (CSV) for all stakeholders | International best practice Rising Performance on International ESG Ratings BB on MSCI ESG Rating Low risk since 2019 Highest 5-star rating since B (improved two grades Listed on Dow Jones
Slide 20: Corporate Awards
AWARDS NWD WON 28 AWARDS IN 1HFY2021 Year of winning Shared Value HR Asia The Stevie Awards Enterprise Asia Project Corporate Shared Value Champion - Best companies to work for Employer of the Year - International Innovation Winner: in Asia 2020: Real Estate: Awards 2020: Adrian Cheng, CEO New New W
Slide 21: Thank you
ON ce — rg NTA AN aH RIE R WR New World Development Company Limited Thank you
Slide 22: Appendix
ON ce — rg NTA AN aH RIE R WR New World Development Company Limited Appendix
Slide 23: 1HFY2021 Segmental Results
APPENDIX 1HFY2021 SEGMENTAL RESULTS Resilient results in property investment and NWS-core business despite macro challenges 1HFY2021 Segment Results (HKD m) (483) 2,586 1,333 (666) 6,885 4,115 Property Property Hotel NWS – Property… Development Property… Investment Hotel… Operations NWS -… Core Busi
Slide 24: Land Bank Overview
APPENDIX LAND BANK OVERVIEW GBA land bank2 accounted for 62% of total land bank in Mainland China and Hong Kong Land bank in Hong Kong Land bank in China Area Total GFA2 (sqm) GBA 2,728,000 New Territories Kowloon Central Region 617,000 5.9M sqft Eastern Region 897,000 3.0M sqft Northern Region 610,
Slide 25: Pipeline Growth in Property Development in Hong Kong
APPENDIX PIPELINE GROWTH IN PROPERTY DEVELOPMENT IN HONG KONG 3.7M sqft to be completed between 2HFY2021 to FY2024 CC date / Total Attributable GFA (sq.ft) Group’s Handover Location Project Name Total Interest (%) date Residential Retail Office (excluding (Calendar year) carpark) Scheduled for compl
Slide 26: Pipeline Growth in Property Development in Mainland China
APPENDIX PIPELINE GROWTH IN PROPERTY DEVELOPMENT IN MAINLAND CHINA 500k sqm to be completed in 2HFY2021 Group’s Total GFA (sqm) Location Region Total Interest (%) Residential Retail Commercial Office Excl. carpark Scheduled for completion in 2HFY2021 1 Guangzhou Park Paradise District 3 Batch B Guan
Slide 27: NWD Ecosystem
APPENDIX NWD ECOSYSTEM Synergy across NWD ecosystem, including property, insurance, healthcare, insurance and more 26
Slide 28: Disclaimer
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 or
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