CK Asset Holdings Limited · HKEX:1113
CK Asset — FY2020 Earnings Presentation
33 slides from CK Asset's earnings presentation, Mar 18, 2021
Slide 1: 2020 Annual Results
2020 Annual Results 18 March 2021
Slide 2: Disclaimer
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 th
Slide 3: 2020 Final Results Highlights
2020 Final Results Highlights 32.5% decrease in Underlying EPS, 14.3% decrease in DPS Underlying EPS Net book value Dividend per share per share HK$5.24 HK$1.80 HK$96.02+ Y % - 32.5% -14.3% +3.0% +% -39% DPS (HK$/share) 2.5 2 1.5 1 0.5 0 2015 2016 2017 2018 2019 2020 Interim Final +% Note: (1) Under
Slide 4: 2020 Final Results Highlights: HK$16,332 million of reported earnings
2020 Final Results Highlights HK$16,332 million of reported earnings HK$ Million 2020 2019 Change Revenue 74,152 96,319 -23.0% Underlying profit 19,339 28,644 -32.5% Change in fair values(1) Real estate investment trusts (1,067) 85 Investment properties (945) 405 Pub property asset impairment (995)
Slide 5: Principal Activities Analysis
Principal Activities Analysis 31% of our profit contribution is recurrent in nature Revenue by Principal Activities Recurrent Revenue HK$ Million FY2020 FY2019 HK$35,482M HK$32,211M 33% 48% recurrent recurrent Profit Contribution by Principal Activities Recurrent Profit Contribution HK$ Million FY20
Slide 6: 2020 Final Results Highlights: contribution by region
2020 Final Results Highlights 34% contribution from HK, 55% from the Mainland, 11% from the UK and Overseas HK$ million HK$ million HK$ Million 2020 Revenue Profit Contribution Hong Kong 16,792 9,396 The Mainland 28,425 15,185 UK 10,790 (2,399) Others 18,145 5,625 Total 74,152 27,807 Note: (1) Profi
Slide 7: Property Sales
See Property 4 Sales
Slide 8: Property Sales
Property Sales HK$ Million 2020 2019 Change Revenue 38,670 64,108 -40% Profit contribution 19,112 21,372 -11% Margin 49.4% 33.3% 8
Slide 9: Property Sales
Property Sales HK$ Million Revenue Profit Contribution & Margin 2020 2019 2020 2019 Hong Kong 8,941 50,020 3,880 43.4% 18,982 37.9% The Mainland 27,114 13,059 14,626 53.9% 2,074 15.9% Overseas 2,615 1,029 606 23.2% 316 30.7% 9
Slide 10: HK$41,254M contracted sales not yet recognized
Property Sales HK$41,254M contracted sales not yet recognized ● About HK$32,128 million scheduled for recognition in 2021 Hong Kong HK$20,479M The Mainland Overseas HK$20,094M HK$681M 10
Slide 11: Property Rental
Property Rental 11 5 Broadgate, London
Slide 12: Property Rental
Property Rental HK$ Million 2020 2019 Change Revenue 6,751 7,450 -9% Profit 5,935 6,897 -14% contribution Margin 87.9% 92.6% 12 5 Broadgate, London
Slide 13: 17.2 million sq.ft. of investment properties
Cheung Kong Center, Hong Kong 5 Broadgate, London Hong Kong 13.0 million sq.ft. 17.2 million sq.ft. of investment properties The Mainland Overseas 1.9 million sq.ft. 2.3 million sq.ft. M+, Wuhan 13 8
Slide 14: Decrease in fair value of investment properties of HK$1,106 million
Cheung Kong Center, Hong Kong 5 Broadgate, London Decrease in fair value of investment properties of HK$1,106 million 4% - 8% cap rate M+, Wuhan 14
Slide 15: Hotel and Serviced Suite Operation
Hotel and Serviced Suite Operation 15
Slide 16: Hotel operation severely hit by the COVID-19 pandemic
Hotel and Serviced Suite Operation Hotel operation severely hit by the COVID-19 pandemic HK$ Million 2020 2019 Change Revenue 2,055 4,185 -51% Profit contribution 260 1,345 -81% Margin 12.7% 32.1% 16
Slide 17: Serviced suite operation managed to protect its occupancy
Hotel and Serviced Suite Operation Serviced suite operation managed to protect its occupancy HK$ Million Profit Contribution 2020 2019 Hong Kong 361 1,371 The Mainland (101) (26) Total 260 1,345 17
Slide 18: Approximately 15,000 rooms and serviced suites
Hotel and Serviced Suite Operation Approximately 15,000 rooms and serviced suites 20.1% Average hotel occupancy rate 86.7% Average serviced suites occupancy rate 18
Slide 19: Property and Project Management
Property and Project Management 19 Stars by the Harbour, Hong Kong
Slide 20: Property and Project Management
Property and Project Management HK$ Million 2020 2019 Change Revenue 836 868 -4% Profit 355 362 -2% contribution Margin 42.5% 41.7% 1881 HERITAGE, Hong Kong 20
Slide 21: Aircraft Leasing
» y, VOOeeeel teeneenee © coneeee Cl - as = AARON —— ay — — 4 Aircraft Leasing
Slide 22: COVID-19 travel restrictions leading to slump in travel demand
Aircraft Leasing COVID-19 travel restrictions leading to slump in travel demand HK$ Million 2020 2019 Change Revenue 2,820 3,192 -12% (1) Profit contribution 1,119 1,515 -26% Margin 39.7% 47.5% Note: (1) Profit Contribution for 2020 includes a gain of HK$201 million on disposal of aircraft and after
Slide 23: Aircraft Leasing: 125 aircraft
Aircraft Leasing HK$ Million Profit Contribution Lessee’s Place of Operation 2020 2019 Asia 388 481 Europe 266 438 North America 471 388 Latin America (6) 208 Total 1,119 1,515 125 Aircraft Average remaining Average age lease term (120 narrow body; 6.8 years 5 wide body) 4.5 years 23
Slide 24: Pub Operation
i 2 ~ O pes oD) [ok .e) 2 =) a.
Slide 25: Pub Operation
Pub PubOperation Operation A leading integrated brewer and pub retailer operating about 2,700 pubs restaurants and hotels across England, Wales and Scotland Pub Company Operates food-led and drink-led destination pubs and restaurants and community-focused local pubs Pub Partners Owns a portfolio of
Slide 26: Lockdown and mandated closure of pubs resulting in operating loss
Pub Operation Lockdown and mandated closure of pubs resulting in operating loss Pub Pub Brewing & 2020 Total 2019 Total Company Partners Brands Change HK$ Million HK$ Million HK$ Million HK$ Million HK$ Million Revenue 7,636 734 1,160 9,530 3,611 164% Profit (1) (3,105) 5 (362) (3,462) 555 -724% con
Slide 27: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Over HK$4 billion profit contribution Infrastructure and Utility Asset Operation 27
Slide 28: Infrastructure and Utility Asset Operation
Infrastructure and Utility Asset Operation Infrastructure Over HK$4 billion and profitUtility Asset Operation contribution CK William JV CKP (Canada) JV Sarvana JV Other 2020 2019 40% JV 75% JV 65% JV investments Total Total Change (DUET Group) (Reliance Group) (ista Group) HK$ Million HK$ Million H
Slide 29: Interests in Real Estate Investment Trusts
Interests in Real Estate Investment Trusts HK$535 million(1) total distribution received HK$ Million 2020 2019 Share of profit of Hui Xian REIT 189 175 Cash distributions received from Fortune REIT 300 319 and Prosperity REIT 489 494 Hui Xian REIT Fortune REIT Prosperity REIT Interest as of 31 Decem
Slide 30: Gearing and Maturity Profile
Gearing and Maturity Profile Bank and other borrowings with maturities HK$ Billion Within one year 22.9 Within two to five years 37.8 Beyond five years 17.2 Total 77.9 Bank balances and deposits 59.5 Net debt 18.4 5.2% Net Debt to Shareholders’ Funds Corporate Ratings: Moody’s: A2 (Stable) 4.8% Net
Slide 31: Landbank Summary
Landbank Summary Total landbank of 132 million sq.ft. Hong Kong The Mainland Overseas Total(1)(2) Million sq.ft. Million sq.ft. Million sq.ft. Million sq.ft. Properties under 5 71 4 80 Development Investment Properties 13 2 2 17 Hotels and Serviced Suites 8 1 - 9 Pub Properties - - 26 26 Total 26 74
Slide 32: Landbank Summary: Major Property Acquisition in Hong Kong
Landbank Summary Major Property Acquisition in Hong Kong Approximate Developable Date Project Location Group’s Interest Gross Floor Area (sq.ft.) Anderson Road, Kwun May 2020 Tong (Survey District 1,089,145 100% No. 3 Lot No. 1069) Kai Tak Area 4E, Site 2, Kai Tak, Kowloon February 2021 648,137 100%
Slide 33: Thank you
RYE TER RA BR ZS] CK ASSET HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability - Stock Code: 1113) Thank you