Wharf (Holdings) Ltd. · HKEX:4
Wharf (Holdings) — FY2005 Earnings Presentation
26 slides from Wharf (Holdings)'s earnings presentation, 2006
Slide 1: 2005 Annual Results
>< WHARE 2005 Annual Results
Slide 2: 2005 Results
2005 Results All core businesses operated well and turned in solid performances in their respective sectors in 2005. Turnover $12.5B, up 5% Profit attributable to shareholders $13.9B, up 10% Before property revaluation, net profit $4.5B, up 20%; EPS up 20% Full year DPS 80 cents, up 16%; d
Slide 3: 2005 Results
2005 Results Borrowing costs rose (as interest rate rose) and property development profit declined but were more than offset by operating and other gains. In the immediate term, rental reversion will fuel the Group’s growth. In the medium term, new investments across all core sectors will star
Slide 4: Results Highlights
Results Highlights 31-12-05 31-12-04 % (Restated) (HKD) (HKD) Changes Profit attributable to shareholders: $13,888M $12,677M +10% Revaluation surplus (net of tax & MI): $9,389M $8,937M +5% Net profit excluding revaluation surplus: $4,499M $3,740M +20% Earnings per share: $5.67 $5.18 +10% E
Slide 5: Results Highlights
Results Highlights 31-12-05 31-12-04 % (Restated) (HKD) (HKD) Changes Borrowing Costs: $562M $239M +135% Average Interest Rate: 3.56% 1.56% +128% Interest Cover: 11.5 23.9 Net Debt: $16.1B $14.1B +14% Debt to Shareholders’ Equity: 24.6% 25.6%
Slide 6: Business Performance
Business Performance Revenue Segment Profit 31-12-05 31-12-04 % 31-12-05 31-12-04 % (HK$M) (HK$M) Changes (HK$M) (HK$M) Changes Property 5,073 4,645 +9% 3,465 3,108 +11% Investment CME 3,937 3,823 +3% 486 456 +7% Logistics 3,534 3,347 +6% 1,935 1,840 +5% Solid performance in all 3 core sectors.
Slide 7: Property Investment
Property Investment Harbour City Revenue Occupancy 31-12-05 31-12-04 % % (HK$M) (HK$M) Changes Retail 1,287 1,193 +8% 99% Office 1,002 945 +6% 97% Serviced Apartment 220 193 +14% 84% Hotel 823 730 +13% 89% Total 3,332 3,061 +9% All sectors reported solid rental growth.
Slide 8: Harbour City – Retail
Harbour City – Retail Average occupancy : 99% (2004 : 98%) Favourable rental growth on new leases and renewals Solid growth underpinned by : ¾ improving local sentiment ¾ rising tourist arrivals Retail tenant’s average sales psf +17% YoY.
Slide 9: Harbour City – Office and Serviced Apartment
Harbour City – Office Average occupancy : 97% (2004 : 91%) Rising rentals due to limited supply & rising demand Resumed positive rental reversions Harbour City – Serviced Apartment Average occupancy : 84% (2004 : 78%) Moderate rental growth +14%
Slide 10: Property Investment
Property Investment Times Square Revenue Occupancy 31-12-05 31-12-04 % % (HK$M) (HK$M) Changes Retail 630 600 +5% 99% Office 256 237 +8% 96% Total 886 837 +6% Both sectors reported solid rental growth.
Slide 11: Times Square - Retail
Times Square - Retail Average occupancy: 99% (2004 : 96%) Substantial rental growth on new leases and renewals Solid growth supported by: ¾ robust retail market ¾ encouraging tourists arrivals Retailers recorded double-digit growth in average sales psf.
Slide 12: Times Square - Office
Times Square - Office Average occupancy: 96% Revenue growth due to significant improvement in reversionary rentals Remained the preferred location for multinationals engaged in services or consumer goods market
Slide 13: Property Investment - China
Property Investment - China 3 Times Squares in operation (Beijing, Shanghai, Chongqing) Total 3.1M sq. ft. GFA Occupancy 90% FY05 Revenue: HK$298M 1717, Nanjing Xi Road, Shanghai ¾ 1.6M sq. ft. GFA office development ¾ Completion: Mid 2009
Slide 14: Property Development - China
Property Development - China Other projects under development Target Completion Date GFA (M’ sq. ft.) Wellington Garden 4Q 2006 0.6 Wuhan Times Square 3Q 2007 2.5 Dalian Times Square Mid 2008 1.9 Other projects under planning ¾ Commercial site in Chengdu, 4.75M sq. ft. GFA ¾ 2 other developments
Slide 15: Marco Polo Hotel Group
Macro Polo Hotel Group Current Profile: 10 hotels (3 HK, 4 China, & 3 Asia) Hong Kong ¾ Hotel & club revenue HK$823M, +13% ¾ Double-digit growth in average room rate China/Asia ¾ All ranked top among their business sectors ¾ Encouraging performance New hotels in 2006 ¾ The Marco Polo Parksid
Slide 16: Logistics
Logistics Revenue Throughput 31-12-05 31-12-04 % 31-12-05 31-12-04 % (HK$M) (HK$M) Changes TEUs(M) TEUs(M) Changes MTL 3,149 2,964 +6% 5.04 4.35 +16% 31-12-05 31-12-04 % (HK$M) (HK$M) Changes MTL’s Associates & jointly controlled 105 94 +12% entity (post-tax) Steady growth
Slide 17: MTL - HK
MTL - HK Throughput 5.04M TEUs (+16%) ¾ driven by feeder, transshipment & intra-Asia volume Market share : 35.3% (2004 : 32.5%) Current Capacity : 7.5 berths, 5.88M TEUs HK$1.2B to upgrade equipments/ facilities at CT 1, 2, 5
Slide 18: MTL - China
MTL - China Chiwan (8% shareholding) ¾ FY 2005 throughput : 2.8M TEUs Shekou (10% shareholding) ¾ FY 2005 throughput : 2.2M TEUs New Investments and expansion: ¾ Dachan Bay in Shenzhen West ¾ Taicang in Suzhou
Slide 19: MTL - New Projects
MTL - New Projects Dachan Bay in Shenzhen West (Phase I) ¾ MTL shareholding - 65% ¾ 5 berths, 2.5M TEUs capacity, completion 2007/08 ¾ Investments - RMB7B, MTL’s share ~RMB 4B ¾ Letter of Intent for Phase II Taicang Port in Suzhou (Phase I) ¾ Major feeder port in Yangtze River Delta ¾ MTL’s shar
Slide 20: CME
CME No. of Subscribers/ Revenue fixed lines 31-12-05 31-12-04 % % (HK$M) (HK$M) Changes 31-12-05 31-12-04 Changes Pay TV 1,884 1,888 --- 738,000 702,000 +5% Internet & Multimedia 558 481 +16% 320,000 291,000 +10% Wharf T&T* 1,478 1,448 +2% 523,000 475,000 +10% Re-investing record free cashflow to bu
Slide 21: CME
CME Pay TV – Investment in differentiation supports subscriber growth and steadies revenue. Internet and Multimedia – Competitive cost base & sharp return to profitability. Integrate Wharf T&T and COL IT to focus on the business sector.
Slide 22: Summary of 2005 Profit & Loss A/C
Summary of 2005 Profit & Loss A/C 31-12-2004 31-12-2005 (Restated) % ___(HK$M)__ __(HK$M)__ Changes Turnover 12,543 11,953 +5% Operating Profit 6,003 5,257 +14% (Excluding revaluation surplus) Increase in fair value of investment properties 11,513 10,911 +6% Net other charges 47 (190) +125% 17,563 1
Slide 23: New Accounting Standards
New Accounting Standards Impact on 2005 Annual Results Attributable Minority to Shareholders Interests Total (HK$M) (HK$M) (HK$M) HKAS 40 Investment Property 11,416 97 11,513 HKAS-INT 21 Deferred Taxation (2,027) (18) (2,045) HK-INT 2 Hotel Property (21) (7) (28) HKFRS 3 Goodwill 50 --- 50 Increase
Slide 24: Wharf Group Debt Profile
Wharf Group Debt Profile at December 31, 2005 Total Debt Un-drawn Facility Company and wholly owned subsidiaries (HK$B) (HK$B) Committed facilities 13.7 74% 3.6 Uncommitted facilities 1.2 6% 0.5 Total: 14.9 80% 4.1 Non-wholly owned subsidiaries (non-recourse to Wharf) Modern Terminals Limited 3.2 17
Slide 25: Net Asset Value Adjustment
Wharf Group Net Asset Value Adjustment Per Share For Supplemental Information Only: HK$ NAV as at December 31, 2005 per Balance Sheet 26.68 Subjective adjustments:- - Modern Terminals (on latest transaction price) 3.39 - Hotel Properties (on independent valuation) 1.37 - i-CABLE (on market value) 0.
Slide 26: End of Presentation
End of Presentation