Far East Consortium International Limited · HKEX:35
Far East Consortium International — H1 FY2025 Earnings Presentation
49 slides from Far East Consortium International's earnings presentation, November 2024
Slide 1: 2024/2025 Interim Results
2024/2025 Interim Results November 2024 Navigating on Solid Foundation 行穩致遠
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. FY2025 Interim Results Summary 2. Review of Operations 3. Prospects 4. Appendices 3
Slide 4: 1. FY2025 Interim Results Summary
1. FY2025 Interim Results Summary Aspen at Consort Place, London 4
Slide 5: Key Theme of 1H FY2025
Key Theme of 1H FY2025 Cash Profit Stayed Positive However Profitability Impacted by Various Factors • Adjusted cash profit(1)(2) stayed positive at approx. HK$139 mn • Revenue(3) decreased 18.7% to approx. HK$5.2 bn as less residential property development was completed and settled in 1H FY2025 vs
Slide 6: Key Theme of 1H FY2025 (cont’d)
Key Theme of 1H FY2025 (cont’d) Stable and Resilient Recurring Income Businesses (hotel, car park and gaming) • Recurring revenue increased up by 2.2% to approx. HK$1.6 bn • Hotel: Revenue increased to approx. HK$977 mn, up 1.1% vs 1H FY2024 ‒ Dorsett Kai Tak, the Hong Kong flagship hotel, soft-open
Slide 7: Profitability Affected by High Finance Costs and One-Off Non-Operating Expense Factors
Profitability Affected by High Finance Costs and One-Off Non-Operating Expense Factors • Interest rate remained high resulting high finance costs of approx. HK$497 mn in 1H FY2025 • Non-operating expense factors occurred in 1H FY2025 HK$ mn 1H FY2025 1H FY2024 % change Revenue 5,172 6,362(1) -18.7%
Slide 8: Strong Property Development Pipeline in the Coming Years
Strong Property Development Pipeline in the Coming Years • Over HK$65.9 bn of development pipeline with cumulative attr. presales and unbooked contracted sales at HK$11.8 bn • Projects expected to complete in 2H FY2025 with expected attr. GDV approx. HK$6.8 bn, of which approx. HK$4.1 bn was presold
Slide 9: Margin Largely Intact Amid Lower-Margin Projects Impact in 1H FY2025
Margin Largely Intact Amid Lower-Margin Projects Impact in 1H FY2025 • Margin of property development dropped due to more settlement from Singapore and UK with lower profit margin • Gross profit margin of recurring income businesses remained steady 1H FY2025 1H FY2024 Gross profit Gross profit Gross
Slide 10: Managing our Balance Sheet
Managing our Balance Sheet • Maintained adjusted net gearing ratio at a healthy level of 68.8% • The impact of net loss attributable to shareholders was offsetted by foreign exchange translation gain HK$ mn As at 30.9.2024 As at 31.3.2024 (1) Due within 1 year 12,573 12,674 Due 1-2 years 2,376 3,420
Slide 11: Short Term Debts Analysis and Liquidity Management
Short Term Debts Analysis and Liquidity Management • Continue our monetisation strategy and aim to reduce debt levels • Completion of major projects and disposal of non-core assets which further reduce debt levels As at 30.9.2024 As at 31.3.2024 Bank loans and notes due within 1 year Status HK$ mn H
Slide 12: Ample Access to Liquidity
Ample Access to Liquidity • Available existing liquidity of approximately HK$8.8 bn (cash position and undrawn facilities) exceeds the capex of approximately HK$1.2 bn • Total cumulative attr. presales and unbooked contracted sales of approx. HK$11.8 bn provides visibility on future cash inflow stre
Slide 13: 2. Review of Operations: Property Development
2. Review of Operations Property Development Hyll on Holland, Singapore 13
Slide 14: Presales Offers Good Cash Flow Visibility
Presales Offers Good Cash Flow Visibility • Over HK$65.9 bn of development pipeline • Total cumulative attr. presales and unbooked contracted sales reached HK$11.8 bn Notes: As at 30.09.2024 Location Cumulative presales Expected attr. SFA (1) Expected attr. GDV(2) Expected Cumulative presale Project
Slide 15: Key Revenue Contributor – Aspen at Consort Place, London
Key Revenue Contributor – Aspen at Consort Place, London (Recent Completion in phases) An Artistic Building Rooted in History Located in the Canary Wharf area in London, Cosort Place is a mixed-use development. The availability of local transport, underground, buses and Crossrail (starting 2020), ma
Slide 16: Key Revenue Contributor – West Side Place, Melbourne
Key Revenue Contributor – West Side Place, Melbourne A New Height of Cosmopolitan Living These four towers make up 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 immediate proximity t
Slide 17: Key Revenue Contributor – Manor Parc and Mount Arcadia, Hong Kong
Key Revenue Contributor – Manor Parc and Mount Arcadia, Hong Kong Low Density Living Surrounded by Lush Greenery Mount Arcadia situated at the mid-level of the mountain. It is blessed with the breathtaking and ever-changing landscape vistas. Manor Parc is located in Tong Yan San Tsuen, Yuen Long. Of
Slide 18: Key Revenue Contributor – Hyll on Holland, Singapore
Key Revenue Contributor – Hyll on Holland, Singapore (Recent Completion in 1H FY2025) Luxury Apartments, boasting Excellent Geographical Location Close to lifestyle destinations and recreational enclaves known to locals and expats, such as Orchard Road, Holland Village and Dempsey Hill. Apartments T
Slide 19: Upcoming Completion in 2H FY2025 – Perth Hub, Perth
Upcoming Completion in 2H FY2025 – Perth Hub, Perth Embrace the Epitome of Connected, Distinctive, and Exciting Urban Living Create an inner-city home in a vibrant destination that links exclusive apartment living with entertainment, restaurants, bars, cafes, shops, art, culture, recreation, educati
Slide 20: Upcoming Completion in 2H FY2025 – The Star Residences (Tower 2), Gold Coast
Upcoming Completion in 2H FY2025 – The Star Residences (Tower 2), Gold Coast Live in the Heart of Gold Coast’s World- Class Integrated Resort Located at The Star Gold Coast on Broadbeach Island, Tower 2 is one of 5 total towers in this mixed-use development. The site is adjacent to Pacific Fair Shop
Slide 21: Upcoming Completion in 1H FY2026 – Queen’s Wharf Residences (Tower 4), Brisbane
Upcoming Completion in 1H FY2026 – Queen’s Wharf Residences (Tower 4), Brisbane A Landmark that Further Reinforces Brisbane’s Status as a Truly Global City With support from the Brisbane government, Queen’s Wharf Residences is a once-in-a-generation renewal project across Australia. The project occu
Slide 22: Upcoming Completion in FY2025/26 – Victoria Riverside, Manchester
Upcoming Completion in FY2025/26 – Victoria Riverside, Manchester New homes in the heart of Manchester Set just a stone’s throw from Manchester City Centre, Victoria Riverside is home to 634 new apartments and townhouses. Along Dantzic street will see new life breathed into the railway arches provid
Slide 23: Recent Launch - The Pavilia Forest, Hong Kong
Recent Launch - The Pavilia Forest, Hong Kong Significant New Development Along the Waterfront The development is at the heart of the Hong Kong, providing residents with access to upgraded infrastructure. Its location offers a tranquil sea view for rest and relaxation away from the hustle and bustle
Slide 24: Recent Launch – Red Bank Riverside – Falcon and Kingfisher, Manchester
Recent Launch – Red Bank Riverside – Falcon and Kingfisher, Manchester Falcon and Kingfisher’s Rise Marks a New Era for Red Bank Living Minutes from Central Manchester, the energy of the city meets the calming waterfront of the River Irk and new City River Park, where sustainable, modern homes will
Slide 25: Upcoming Launch in 2H FY2025 – 640 Bourke Street, Melbourne
Upcoming Launch in 2H FY2025 – 640 Bourke Street, Melbourne Unique silhouette on the skyline Located in the Melbourne CBD grid which is the next stage of our regeneration of Melbourne’s western CBD. The façade builds upon the rich tapestry of Melbourne city towers, equally referencing a modernist ag
Slide 26: 2. Review of Operations: Hotel Operations & Management
2. Review of Operations Hotel Operations & Management Dorsett Kai Tak, Hong Kong 26
Slide 27: Performance in Hotel Revenue
Performance in Hotel Revenue • Recorded positive growth in most regions on the back of tourism recovery • Dorsett Kai Tak, Hong Kong was soft-opened on 26 Sep 2024. Extensive interests had been received given its proximity to Kai Tak Sports Park • Demonstrated ability on expansion by leveraging asse
Slide 28: Recent Opening – Dorsett Kai Tak, Hong Kong
Recent Opening – Dorsett Kai Tak, Hong Kong Marina Escapade in a New Urban Hub • Our latest hotel in HK (10th hotel locally), opposite largest stadium in HK which can seat 50,000 people • Only 170 m from the main stadium of Kai Tak Sports Park, 2-min walking distance • The only hotel in Kai Tak spor
Slide 29: Recent Opening – Dorsett Kai Tak, Hong Kong (con’t)
Recent Opening – Dorsett Kai Tak, Hong Kong (con’t) Cultivating the Local Community • The hotel is located in Kowloon City; to support employment of local residents, we offer job opportunities with upskilling courses Complementing with Kai Tak Sports Park • With an area of around 28 hectares, Kai Ta
Slide 30: Working Together with Reputable Funds – Asset-Light Model – Dorsett Changi City Singapore
Working Together with Reputable Funds – Asset-Light Model – Dorsett Changi City Singapore In the Heart of East Singapore Seamlessly Blending Business and Leisure • The third hotel owned and managed by the Group in Singapore • In close proximity to Singapore Changi Airport, Changi City Point and Sing
Slide 31: Pipeline Hotels Add to Growth Momentum
Pipeline Hotels Add to Growth Momentum • 6 new hotels under construction in Australia and the UK with As at 30.9.2024 As at 31.3.2026 approx.1,300 rooms in the next 2 years 9,424 10,717 • Our flagship hotel in Hong Kong, Dorsett Kai Tak, soft opened in Sep 2024 rooms rooms • Dao by Dorsett North Lon
Slide 32: Upcoming Hotel Completion
Upcoming Hotel Completion Dao by Dorsett North London Dorsett Canary Wharf, London (Opening in FY2025) (Opening in 1H FY2026) A Unique Combination of Contemporary and London’s Most Sought-after Purpose-built Hotel Period Furnishings • The second Dao by Dorsett in the UK • Located in Canary Wharf, Lo
Slide 33: 2. Review of Operations: Car Park Operations
2. Review of Operations Car Park Operations Care Park, Victoria 33
Slide 34: Strategic Car Park Divestments
Strategic Car Park Divestments • Revenue increased 6.7% YoY to approx. HK$380 mn as core 30.9.2024 31.3.2024 business saw a steady improvement. No. of No. of No. of No. of Car Park Bays Car Park Bays • Continue to divest some mature car parks to unlock capital for Australia future investments and de
Slide 35: 2. Review of Operations: Gaming Operations
2. Review of Operations Gaming Operations PALASINO Furth im Wald, Czech Republic 35
Slide 36: Palasino – Successfully Listed on the Main Board of HKEX
Palasino – Successfully Listed on the Main Board of HKEX Steady Growth in Business • Successfully listed on the Main Board of HKEX on 26 Mar 2024 • Currently holds a controlling stake of 72.07% in Palasino following the partial exercise of the over-allotment option in Apr 2024 • Revenue reached HK$1
Slide 37: Soft Opened the Initial Phase of Integrated Resort under Queen’s Wharf Brisbane
Soft Opened the Initial Phase of Integrated Resort under Queen’s Wharf Brisbane • Integrated resort had its soft opening on 29 Aug 2024 • The Star Grand Hotel and gaming facilities with premium gaming rooms were unveiled with positive responses • Remaining F&B outlets, retail and dinning spaces and
Slide 38: 2. Review of Operations: Other Business
2.Review of Operations Other Business Victoria Riverside, Manchester 38
Slide 39: BC Invest – Another Year of Strong Growth
BC Invest – Another Year of Strong Growth Overview Catalysts for 2H FY2025 • The Group holds approximately 53.16% stake • Organic growth remains very strong, despite the interest rate • AUM reached AUD6.1 bn environment • Issued its tenth RMBS offering in June 2024, • Normalisation of lending market
Slide 40: 3. Prospects
3. Prospects The Star Residences, Gold Coast 40
Slide 41: Outlook
Outlook Balance Sheet Management • Continue to reduce debt levels and finance costs amidst the high interest rate environment • Focus on monetising and completing the existing developments and earmarked to sell non-core assets • Repay the perpetual note Property Development Business • Strong unbooke
Slide 42: Key Sustainability Highlights
Key Sustainability Highlights • Donated HK$86,000 to support United Overseas Bank Ink Art Award in fostering long-term appreciation • Understand our Carbon Footprint and material for Southeast Asian Art emissions categories on our journey to developing • Expanded our volunteering commitment by a net
Slide 43: Enhance ESG Efforts to Create Long-Term Value
Enhance ESG Efforts to Create Long-Term Value Strengthen Governance to Improve ESG Performance Formed key internal committees within the ESG Working Group to support the ESG Steering Committee Create strategic ESG Direction for the Group Developed KPI’s with Executing the sustainability Refining Gro
Slide 44: Reputable Awards for IR and ESG Work
Reputable Awards for IR and ESG Work 1H FY2025 Outstanding Corporate Strategy Awards 2024 14th Asian Excellence Award 2024 • Winner of Outstanding Corporate Strategy Award • Asia’s Best CEO: Mr. David Chiu, Chairman and Chief Executive Officer • Asia’s Best CFO: Mr. Boswell Cheung, Chief Financial O
Slide 45: Thank You
Thank You Questions & Answers For more information, please contact: Investor Relations Department: ir@fecil.com.hk Or visit the Company’s website: www.fecil.com.hk FEC Official WeChat 45
Slide 46: 4. Appendices
4. Appendices Mount Arcadia, Hong Kong 46
Slide 47: Significant Hidden Value in FEC’s Hotel Portfolio
Significant Hidden Value in FEC’s Hotel Portfolio Capital Value @ Revaluation City / Country Description Rooms 31.03.2024 Surplus (HK$ mn) (HK$ mn) Hotels in operation Hong Kong 1 Dorsett Wanchai Hong Kong Amid Wanchai and Causeway Bay 454 3,910 3,698 2 Cosmo Hotel Hong Kong In Hong Kong's prime bus
Slide 48: Details of Major Investment Properties
Details of Major Investment Properties Total GFA Total GFA Current Investment Properties (sq. ft.) Pipeline Investment Properties (sq. ft.) FEC Building, Central, Hong Kong 3,000 Queen's Wharf Brisbane (1), Brisbane 22,800 FEC Building, Nathan Road, Hong Kong 38,700 Long-lease Residences, Baoshan Di
Slide 49: Foreign Exchange Rates
Foreign Exchange Rates • Assuming exchange rates remained constant, net asset value would have been approx. HK$971 mn lower as at 30 Sep 2024; while profit attributable to shareholders would have been approx. HK$7 mn lower for 1H FY2025 Rates as at 30.9.2024 31.3.2024 % change Avg rates for 1H FY202
Far East Consortium International — H1 FY2025 Earnings Presentation on 6ix