2017 ANNUAL RESULTS PRESENTATION

Transcription

1 2017 ANNUAL RESULTS PRESENTATION March 2018

2 Disclaimers These materials have been prepared by Future Land Development Holdings Limited and its subsidiaries (the Group ) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Group will not accept any liability whatsoever for any loss however arising from any information presented or contained in these materials. The information presented or contained in these materials is current as of the date hereof, unless indicated otherwise, and is subject to change without notice and its accuracy is not guaranteed. The Group does not provide any undertaking to update any such information subsequent to the date hereof. These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Group or its officers with respect to future events. These statements can be recognized by the use of words such as expects, plans, will, estimates, projects, intends, or words of similar meaning. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. You should not place undue reliance on any forward-looking statements. The Group has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Group, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. 1

3 2017 Annual Results Highlights

4 2017 Annual Results Highlights Contracted Sales Contracted sales 1 : RMB bn, up 94.4% Contracted sales from JV accounted for 25.2% Aggregated contracted GFA 1 : 9.28 mn sq.m., up 61.4% Average contracted ASP 1, 2 : RMB14,520 per sq.m., up 20.1% Cash collection: 85%, leading among peers 2018 Contracted sales target: RMB180 bn Revenue & Earnings Recognised total revenue: RMB40.82 bn, up 44.6% Gross profit: RMB13.58 bn, up 105.6% Gross profit margin: increased to 33.3% Net profit attributable to the equity holders: RMB3.79 bn, up 174.1% Core earnings attributable to equity holders 3 : RMB3.09 bn, up 167.1% Recommended final dividend of RMB0.162 per share Finance Costs Net gearing ratio 4 : 90.6% Weighted average finance costs: lowered to 5.3% Cash to short-term debt: > 1.6x Notes: (1) Including join ventures and associates projects (2) Excluding car parks (3) Core earnings equal to net profit less after-tax fair value gains or losses and disposal (including direct sale and transfer of assets and equity interest) gains or losses (whether directly or through equity transfer) on investment properties including those recorded in other gains, and exclude unrealized foreign exchange gains or losses relating to borrowings, loss from early redemption of senior notes, and after-tax gain on disposal of certain subsidiaries engaging in residential property management business. (4) Post share placement in January

5 2017 Annual Results Highlights Landbank Total land bank GFA of 67.4 mn sq.m as of 31 Dec 2017 Average land cost of RMB2,905 per sq.m. Newly acquired a total of 122 projects with GFA of approximately 33.9 mn sq.m. 40% through M&A Total land bank along the Yangtze River Delta accounted for 56% Wuyue Plaza Newly commenced 12 Wuyue Plaza, 23 completed Wuyue Plaza 45 under development Wuyue Plaza, with estimated additional leasable area of approximately 2.7 mn sq.m. Average daily visitors in 2017: 43,200; overall occupancy rate: 98.4% Total rental income and management fees: RMB1.066 bn, up 205.4% 2018 targeted rental and management fees: RMB2.0 bn 4

6 2017 Annual Results Highlights Ratings Upgrade & Share Index Moody s, Fitch and S&P upgraded outlook to BB- (Positive), BB- (Positive) and Ba3 (Positive) Hang Seng Composite LargeCap & MidCap Index. The Shanghai-Hong Kong Stock Connect Subsequent events Share placement with net proceeds of USD 200 mn in January Issued HKD bn 2.25% convertible bonds in January

7 Operation Performance

8 Overview of Contracted Sales Contracted Sales Contracted GFA & ASP 1 (RMB million) 140, ,000 ( 000 sq.m.) 10,000 9,000 (ASP:RMB) 16,000 14,520 14, ,000 80,000 8,000 7,000 6,000 10,045 9,516 9,948 12,090 12,000 10,000 60, ,472 5,000 4,000 9,282 8,000 6,000 40,000 20,000 20,624 24,510 31,929 65,060 3,000 2,000 1,000 2,206 2,769 3,460 5,750 4,000 2, Contracted GFA ASP of Contracted Sales Note 1: ASP of contracted sales excludes car parks 7

9 Contracted Sales by Geographic Regions 0.93% 1.06% 1.09% 1.22% 1.23% 1.26% Total = RMB126, mn % Suzhou 7.22% 1.28% 12.58% Hangzhou 1.56% 1.63% 8.30% Nanjing FY % 2.48% 1.97% 7.77% Changzhou 2.73% 2.62% 5.08% 4.06% 3.50% 3.44% 3.11% 2.78% 3.21% Suzhou Hangzhou Nanjing Changzhou Shanghai Jiaxing Nantong Hefei Changsha Qingdao Taizhou Zhenjiang Tianjin Wuhan Jinan Yangzhou Jinhua Ningbo Anqing Shaoxing Taizhou Huzhou Kunming Chengdu Jinjiang Others 20.30% Suzhou Suzhou 1.9% Suzhou 2.1% Tongxiang Haikou Quzhou Shengzhou Changchun 2.2% 2.5% Total = RMB65,059.5 mn 1 2.7% 2.9% Changzhou 4.90% 6.70% Hangzhou FY % 1.90% 13.40% Nanjing 11.90% Shanghai 4.20% 3.70% 2.90% 2.40% 3.60% The Group continued to diversify its geographical span, contracted sales contributed from 42 cities Contracted sales from joint venture projects: RMB31.93 bn, representing 25.2% of total contracted sales Note (1): including joint ventures, associates projects and car parks 8

10 Contracted Sales by Region & Monthly Sales Breakdown Contracted Sales by Region % FY % 1.83% Yangtze River Delta Central & Western China FY % 7.9% 3.1% Bohai Rim 79.98% Pearl River Delta 81.0% Monthly Contracted Sales 2 and ASP 3 Breakdown 15,524 15,113 15,131 15,550 15,980 14,961 13,484 13,210 13,456 14,580 single-month sales & ASP record 13,685 13,972 4,892 5,231 13,016 9,110 8,926 7,912 6,076 8,734 11,010 14,257 16,131 21,176 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Contracted Sales (RMB million) ASP (RMB /sq.m.) Notes: (1) Contracted sales by region excluded car parks (2) Contracted sales included joint ventures and associates projects and car parks (3) The calculations of ASP included joint ventures and associates projects but excluding car parks 9

11 Land Bank Breakdown Total Land Bank (1) 67.4 mn sq.m. Average Cost RMB2,905 / sq.m. Yangtze River Delta Xuzhou Pan Bohai Rim Suqian Zhenjiang Taizhou Nanjing Nantong Yangzhou Changzhou Huaibei Jintan Wuxi Chuzhou Shanghai Suzhou Huainan Jiaxing Huzhou Central Western Region Anqing Hangzhou Ningbo Shaoxing Shaoxing Ningbo Jinhua Quzhou Yiwu Quzhou Wenzhou Taizhou Pearl River Delta Completed but not recognized (2) ( 000 sq.m.) Under Development (2) ( 000 sq.m.) Under Planning (2) ( 000 sq.m.) 5,551 26,238 35,612 Notes: (1) The total land bank is presented from the perspective of Future Land Holdings ( SH) (2) Included area of investment properties 10

12 Land Bank by Geographic Regions Nanjing 6.04% Wuxi 1.15% Huainan 1.27% Ningbo 2.78% Shanghai 4.33% Huaibei 1.83% Shaoxing 3.49% Lianyungang 2.17% Huzhou 1.75% Yangtze River Delta Jiaxing 2.58% Hangzhou 4.47% Huai'an 2.30% Taizhou 3.80% Others 8.89% Zhenjiang 3.81% Changzhou 11.70% Suzhou 17.57% Hefei 4.71% Nantong 5.29% Xuzhou 3.00% Taizhou 3.79% Suqian 3.24% Jinan 12.73% Linyi 3.54% Qingdao 41.35% Pan Bohai Rim Langfang 3.41% 56.02% 15.81% Tianjin 19.21% Dezhou 6.49% Tangshan 5.11% Changchun 8.15% Pearl River Delta Haikou 5.80% Dongguan 2.35% Jingzhou 1.38% Huangshi 1.71% Central & Western China Taiyuan 2.78% Others 3.60% Qinzhou 3.87% Chengdu 17.87% Foshan 21.51% Wuhan 7.43% 5.77% Baoji 3.96% 22.40% Guilin 4.91% Huizhou 55.03% Changsha 16.79% Zhaoqing 7.08% Jinjiang 8.23% Kunming 8.92% Xiaogan 6.32% Xi'an 7.19% Chongqing 7.59% Zhengzhou 5.69% 11

13 Land Acquisitions in 2017 Acquired 122 new projects in 2017 with an average land cost of RMB3,175 / sq.m.. 60% acquired through land auction Additional saleable resources of over RMB400 billion 2017 New Acquisitions By Region 2016 New Acquisitions By Region 6.7% 30.9% FY % 35.0% FY % 11.2% 7.7% 4.0% Yangtze River Delta Pearl River Delta Bohai Rim Central & Western China 12

14 Financial Highlights

15 Income statement highlights (RMB mn) % Change Revenue 40, , % Gross Profit ( GP ) 13, , % GP Margin 33.3% 23.4% +9.9% EBITDA (1) 12, , % Net Profit Attributable to Equity Holders 3, , % Core Earnings Attributable to Equity Holders (2) 3, , % Earnings per share for profit attributable to equity holders % Dividend (RMB) Notes (1) EBITDA refers to net profit plus income tax expense, depreciation, amortization and finance costs (including capitalized interest under cost of sales), but excluding fair value gains on the investment properties and other net gains or losses (2) Core earnings equal to net profit less after-tax fair value gains or losses and disposal (including direct sale and transfer of assets and equity interest) gains or losses (whether directly or through equity transfer) on investment properties including those recorded in other gains, and exclude unrealized foreign exchange gains or losses relating to borrowings, loss from early redemption of senior notes, and after-tax gain on disposal of certain subsidiaries engaging in residential property management business. 15

16 Revenue and GFA Delivered Revenue GFA Delivered and ASP (RMB mn) 44,000 (ASP: RMB) (GFA delivered: 000 sq.m.) 40,000 2,030 4,500 12,000 36,000 32,000 28,000 1,182 4,000 3,500 3,000 8,251 8,518 8,153 8,836 10,107 10,000 8,000 24,000 20,000 16,000 12,000 8, ,422 20, ,973 27,050 38,790 2,500 2,000 1,500 1,000 2,475 2,373 2,818 3,061 3,838 6,000 4,000 2,000 4, Sales of Properties Commercial Property Management & Others GFA Delivered ASP 16

17 Recognized Sales of Properties by Geographic Regions Others 28.48% Suzhou 3.22% Total = RMB 38,790.1 mn Nanjing 7.76% Changzhou 3.28% Wuhan 6.32% FY2017 (by city) Changchun 3.30% Ningbo 5.53% Suzhou 3.30% Tongxiang 5.48% Hangzhou 5.36% Nanjing 4.62% Anqing 3.92% Danyang 3.74% Quzhou 5.36% Dingmao 5.29% Jinan 5.05% City Nanjing Project Nanjing Xianlin Lake Land Parcel Revenue ( RMB mn ) GFA Delivered (sq.m.) Average Selling Price (RMB/ sq.m.) 3, ,501 22,046 Wuhan Wuhan Delight City 2, ,205 9,276 Ningbo Ningbo Wuyue Plaza 2, ,746 9,628 Tongxiang Tongxiang Wuyue Plaza 2, ,234 9,106 Hangzhou Xiaoshan Aofu 2, ,838 23,157 Quzhou Quzhou Wuyue Plaza 2, ,195 11,737 Dingmao Dingmao Wuyue Plaza 2, ,928 7,100 Jinan Jinan Future France 1, ,747 7,545 Nanjing Flourish France 1, ,989 12,369 Anqing Anqing Wuyue Plaza 1, ,420 6,325 Other projects 17, ,779,998 9,874 Total 38, ,837,800 10,107 17

18 Cost of Sales and Gross Profit Average Cost per sq.m. 1 GP and GP Margin 7,000 6,000 (RMB) 6, , , , ,439 6, (RMB mn) 15,000 14,000 13,000 12,000 13,581 50% 45% 40% 5,000 4, ,105 1,928 2,384 2,267 2,522 2,883 11,000 10, % 35% 4,000 3,000 2,000 1, ,170 4,019 3,677 3,639 3,322 3,479 3,652 3, construction cost land use right cost capitalised interest 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, % [ 值 ] 22.5% 6, % 18.7% 20.40% 4,683 4,856 3,930 3,874 3, GP GP Margin 30% 25% 20% 15% 10% 5% 0% Notes1:Average cost per sq.m = Average cost of sales (excluding the Group s leasing and property management), divide GFA delivered by construction cost, land use right cost and capitalized interest of the year. 18

19 Net Profit and Core Earnings Net Profit Core Earnings 6,500 6,000 (RMB mn) 6,014 5,000 4,500 (RMB mn) 4,985 5,500 5,000 2,220 4,000 1,897 4,500 3,500 4,000 3,000 3,500 3,000 2,500 2,000 1,500 1,000 1,717 1, , ,467 1,083 3,794 2,500 2,000 1,500 1,000 1, , , , , ,026 1,031 1, , Attributable to Equity Holders Non-controlling Interests Attributable to Equity Holders Non-controlling Interests 19

20 Consolidated Balance Sheet Highlights RMB mn % Change Total Cash & Bank Balances 24, , % - Restricted Cash 4, , % - Cash & Cash Equivalents 20, , % Borrowings 49, , % Net Debts 1 24, , % Net gearing ratio % 88.7% +1.9% Total Assets 189, , % Note (1): Net debts includes total borrowings and total cash & bank balances (i.e., restricted cash and cash & cash equivalents) (2): Post share placement in January

21 Sufficient liquidity and prudent debt management Loan Profile Onshore / Offshore Loan Maturity Others 18.5% Offshore 11.1% More than 5 years 0.2% Bank Loans 31.3% Within a year 30.9% Middle Term Notes 13.4% Senior Notes 7.2% Corporate Bonds 29.6% Onshore 88.9% 2-5 years 68.9% Total funds available as of 31 December 2017 was about RMB79.21 bn (including RMB24.65 bn of cash and cash equivalents). 21

22 Outlook Future Land 25 th Anniversary Long-term vision: Maintain Top 10 and aim for Top 5 Continuously implement favorable policies Improve profit margins and liquidity Improve inventory turnover 22

23 Q&A