2017 Interim Results 3 August 2017

Transcription

1 2017 Interim Results 3 August

2 Disclaimer Potential investors and shareholders of the Company (the Potential Investors and Shareholders ) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the Group. The information included is solely for the use in this Presentation and certain information has not been independently verified. No representations or warranties, expressed or implied, are made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions presented or contained in this Presentation. Potential Investors and Shareholders should refer to the 2017 Interim Results of the Company which are published in accordance with the listing rules of the Stock Exchange of Hong Kong Limited. The performance and the results of operations of the Group contained within this Presentation are historical in nature, and past performance is no guarantee of the future results of the Group. Any forward-looking statements and opinions contained within this Presentation are based on current plans, estimates and projections, and therefore involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements and opinions. The Group, the Directors, employees and agents of the Group assume (a) no obligation to correct or update the forward-looking statements or opinions contained in this Presentation; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialise or turn out to be incorrect. Potential Investors and Shareholders should exercise caution when investing in or dealing in the securities of the Company. 2

3 2017 Interim Results Highlights 2017 HK$ Million 2016 HK$ Million Change Revenue 29,863 27, % Profit before investment property revaluation 9,480 8, % Investment property revaluation (net of tax) 4, Profit attributable to shareholders 14,410 8, % Earnings per share (before revaluation) HK$2.52 (+ 17%) Earnings per share HK$ 3.82 (+ 71%) Net book value per share HK$ / share Dividend per share HK$ 0.42 / share + 11% 3

4 2017 Interim Results Highlights Revenue by Geography Profit Contribution by Geography Hong Kong 44% Hong Kong 50% Overseas 6% The Mainland 50% Overseas 5% The Mainland 45% Total Revenue = HK$ 29,863 million Profit Contribution (1) = HK$ 14,313 million Note: (1) Profit contribution refers to contribution from principal activities after depreciation and absorption of overhead expenses, but before interest costs and tax. 4

5 2017 Interim Results Highlights Property Sales 73% Revenue by Business Segment Property Rental 13% Hotel and Serviced Suite Operation 7% Property and Project Management 1% Energy and Infrastructure Assets 2% Aircraft Leasing 4% Profit Contribution by Business Segment Property Sales 64% Property Rental 25% Hotel and Serviced Suite Operation 5% Property and Project Management 1% Aircraft Leasing 3% Energy and Infrastructure Assets 2% Total Revenue = HK$ 29,863 million Profit Contribution (1) = HK$ 14,313 million Note: (1) Profit contribution refers to contribution from principal activities after depreciation and absorption of overhead expenses, but before interest costs and tax. 5

6 Profit Contribution by Principal Activities Change HK$M HK$M % Property sales 9,132 6,856 33% Property rental 3,594 3,363 7% Hotel and serviced suite operation % Property and project management % Aircraft leasing N/A Energy and infrastructure assets N/A 14,313 10,985 30% Interest and other finance costs (699) (318) 120% 13,614 10,667 28% Interests in real estate investment trusts Increase in fair value of investment properties Group 4, Joint ventures 5 3 Profit on disposal of hotel properties Others Taxation Group (4,576) (2,314) Joint ventures (69) (52) Profit attributable to non-controlling interests and holders of perpetual capital securities (198) (173) Profit attributable to shareholders 14,410 8,606 67% 6

7 Property Sales HK$ Million Revenue 21,831 21,296 Profit Contribution 9,132 6,856 Margin 41.8% 32.2% Revenue and Profit Contribution by Geography HK$ Million Revenue Profit Contribution & Margin Hong Kong 7,535 8,663 3, % 3, % The Mainland 14,292 12,628 6, % 3, % Overseas 4 5 (22) n/a (39) n/a TOTAL 21,831 21,296 9, % 6, % 7

8 Property Sales Major Contributors to Revenue and Profit in 1H17 Hong Kong Stars by the Harbour Yuccie Square Project The Mainland La Grande Ville (Beijing) Cape Coral (Guangzhou) The Harbourfront (Qingdao) Millennium Waterfront (Wuhan) 8

9 Property Sales Contracted Sales Not Yet Recognised Analysis of Contracted Sales as at 30 June 2017 Contracted Sales Amount HK$ Million Hong Kong 27,965 The Mainland 38,101 Overseas 2,669 TOTAL 68,735 9

10 Property Rental HK$ Million Revenue 3,889 3,670 Profit Contribution 3,594 3,363 Margin 92.4% 91.6% Profit Contribution by Geography Revenue by Use of Property HK$ Million Profit Contribution Hong Kong 3,205 3,115 The Mainland Overseas TOTAL 3,594 3,363 HK$ Million Revenue Office 1,590 1,566 Retail 1,673 1,484 Industrial Others TOTAL 3,889 3,670 10

11 Property Rental Increase in fair value of HK$ 4,832 million from investment properties held by subsidiaries and HK$ 5 million from investment properties held by joint ventures. Investment Property Portfolio (1) by Type Hong Kong The Mainland Overseas Total Cap rate used Million sq.ft. Million sq.ft. Million sq.ft. Million sq.ft. Office Retail Industrial % - 8% TOTAL Note: (1) Including share of joint ventures but excluding car parking spaces. 11

12 Hotel and Serviced Suite Operation The Group s completed hotel and serviced suite portfolio comprises 15 hotels and serviced suites in Hong Kong, 2 hotels on the Mainland, 1 hotel in The Bahamas and a total of over 15,000 rooms In early 2017, the Group s interests in Harbour Plaza Chongqing and Sheraton Chengdu Lido Hotel were disposed of to Hui Xian Real Estate Investment Trust at a profit of HK$363 million The annualised yield on the carrying amount of the Group s completed hotel and serviced suite properties at the interim period end date was 16.7%. HK$ Million Revenue 2,228 2,295 Profit Contribution 685 (1) 633 Margin 30.7% 27.6% Note: (1) Profit contribution for 2017 refers to pre-tax contribution from the hotel and serviced suite division after depreciation charge of HK$200 million on properties and absorption of overhead expenses. 12

13 Hotel and Serviced Suite Operation Profit Contribution by Geography HK$ Million Profit Contribution (1) Hong Kong The Mainland (30) (17) Overseas (50) (48) TOTAL Note: (1) Profit contribution for 2017 refers to pre-tax contribution from the hotel and serviced suite division after depreciation charge of HK$200 million on properties and absorption of overhead expenses. 13

14 Property and Project Management Total floor area of properties under management has reached approximately 262 million sq.ft. HK$ Million Revenue Profit Contribution Margin 44.7% 44.0% Profit Contribution by Geography HK$ Million Profit Contribution Hong Kong The Mainland Overseas TOTAL

15 Aircraft Leasing HK$ Million Revenue 1,057 - Profit Contribution 517 (1) - Margin 48.9% - Profit Contribution based on Lessee s Region of Operation HK$ Million Profit Contribution (1) 71 Aircraft (66 narrow body; 5 wide body) Asia Europe North America 111 Latin America 67 - TOTAL Average age 5 years Average remaining lease term 5.8 years Note: (1) Profit contribution for 2017 refers to pre-tax contribution from the aircraft leasing business after depreciation charge of HK$526 million on aircraft and absorption of overhead expenses. 15

16 Energy and Infrastructure Assets: DUET Group In May 2017, the consortium which is held as to 40%, 40% and 20% respectively by the Group, CK Infrastructure Holdings Limited ( CKI ) and Power Assets Holdings Limited completed the acquisition of all the stapled securities in issue of the DUET Group at an adjusted total consideration of approximately AUD7,410 million (equivalent to approximately HK$42,690 million). The DUET Group is an owner and operator of energy utility assets in Australia, the United States, the United Kingdom and Europe. HK$ Million Revenue Profit Contribution Margin 45.0% - 16

17 Energy and Infrastructure Assets: Reliance In mid-july 2017, the Group completed the acquisition of the building equipment services business (the Business ) which provides water heaters and related services under the consumer brand, Reliance Home Comfort, in Canada, at an adjusted consideration of approximately C$2,800 million (equivalent to approximately HK$17,160 million). Also in mid-july, the Group entered into an agreement with CKI to dispose of 25% equity interest in the Business to CKI, which will be appointed as the manager of the Business given its experience in owning and operating infrastructure business. The disposal is subject to the approval of the independent shareholders of the Company. 17

18 Energy and Infrastructure Assets: ista On 27 July 2017, the Group agreed to acquire 100% of ista Luxemburg GmbH ( ista ) at a consideration of EUR4,500 million (approximately HK$41,400 million). ista is one of the world s leading fully integrated energy management services providers with strong market positions in Europe including Germany, Denmark, the Netherlands, France, Italy and Spain. Subject to obtaining the respective independent shareholders approval and the necessary regulatory clearances, this investment will be held by a consortium comprising the Group (65%) and CKI (35%). 18

19 Interests in Real Estate Investment Trusts Contribution to profit for the period by the Group s interests in REITs amounted to HK$ 393 million Cash distribution of HK$ 416 million in total was received from Hui Xian REIT, Fortune REIT and Prosperity REIT Hui Xian REIT Principal Activities Investment in hotels and serviced suites, office and retail properties on the Mainland Effective Interest as of 30 June % Fortune REIT Investment in retail properties in Hong Kong 27.6% Prosperity REIT Investment in office, retail and industrial properties in Hong Kong 18.8% 19

20 Gearing and Maturity Profile Bank and Other Borrowings Bank Balances and Deposits Net Debt Shareholders Funds Total Equity Net Total Capital HK$ 85,167 million HK$ 82,744 million HK$ 2,423 million HK$ 275,623 million HK$ 293,364 million HK$ 295,787 million Key Ratios Net Debt to Shareholders Funds 0.9% Net Debt to Net Total Capital 0.8% 20

21 Gearing and Maturity Profile The Group monitors its liquidity requirements on a short to medium term basis and arranges bank and other borrowings accordingly. During the period, the Group issued notes amounting to HK$1.1 billion with a 10-year term under the Euro Medium Term Note programme. The Group also issued perpetual capital securities with an annual distribution rate of 4.6% in the amount of US$1.5 billion in May Maturity Profile of Bank and Other Borrowings as at 30 June 2017 Bank and Other Borrowings HK$ Billion Within one year 44.0 Within two to five years 31.7 Beyond five years 9.5 TOTAL

22 Corporate Ratings The current corporate ratings assigned to Cheung Kong Property Holdings Limited are as follows: Type Ratings Outlook S&P Long term corporate credit rating A Stable Moody s Long term foreign currency Issuer rating A2 Stable Fitch Long term foreign currency Issuer Default Rating A Stable 22

23 Landbank Summary Total development landbank of approximately 124 million sq.ft. across Hong Kong, the Mainland, and overseas. Development Landbank (1) by Geography Development Landbank Million sq.ft. Hong Kong 6 The Mainland 114 Overseas 4 TOTAL 124 Note: (1) Development landbank excludes agricultural land and completed properties but includes developers interests in joint development projects. 23

24 Thank you 24