Shareholders Rewarded for Another Solid Year
Wheelock and Company Limited
2012 Annual Results
27 March 2013
1
1
Highlights
✴ Attributable profit +18% to $26.9B
✴ Wharf reported a record profit (+55%); paying a record dividend (+56%)
✴ Concentration of development completion in Singapore and HK was
much higher in 2011 than in 2012
Singapore
✴ WPSL's operating profit -81% or $3.1B
✴ Scotts Square contributed $3.6B in 2011 ✴ Property sales +14% to $845M in a soft market
✴ Current development land bank 0.9M sq. ft. after recent acquisition of
residential site for S$550M
✴ Ardmore Three (145,000 sq. ft. GFA) is due for completion in 2014;
presales to start later this year
✴
✴
Hong Kong
Operating profit from development -25% or $0.5B
One Island South contributed $2.1B in 2011; One Midtown contributed
$1.3B in 2012.
2
2
Highlights
Hong Kong
✴ Property sales +99% to $6.9B
✴ Current land bank 7.1M sq. ft. after acquisitions in the past 15 months for
$6.1B
✴ Lexington Hill (89,000 sq. ft. GFA) is 99%fully presold. Completion expected
in 2014.
✴ Kadoorie Hill (92,000 sq. ft. GFA) is 85% presold. Completion expected in
2013
✴ Austin Station (1.3M sq. ft. GFA) is due for completion in 2015. Presales is
targeted to start in 2013
✴ One Bay East (915,000 sq. ft. GFA) is due for completion in 2015. Presales is
targeted to start in 2013.
✴ Profit before investment property revaluation surplus +4% to HK$8.7B. Core
✴
profit -20% to $7.3B. Full year dividend increased to $1.10 per share, +120% over 2011. Payout ratio
based on core profit increased from 11% to 31%. 3
3
Contents
1. Business Focus
2. Financial Highlights
3. Wheelock Properties Limited
4. Wheelock Properties (Singapore) Limited
5. Appendix
4
4
Business Focus
100%
51.4%*
76%**
Wheelock
Properties Limited
The Wharf
(Holdings) Limited
Wheelock Properties
(Singapore) Limited
Hong Kong
(Development Properties)
Hong Kong
(Investment Properties)
China
(Investment Properties)
(Development Properties)
Singapore
(Investment Properties)
(Development Properties)
*Listed companies in HK
**Listed company in Singapore
5
Financial Highlights
Steady Growth in Attributable Profit
$26.9B
2012 Profit after IP
revaluation surplus
+18%
over 2011
+156%
in 3 years
Profit after IP revaluation surplus
2009-2012
$27
$20
$14
20.2B
$7
$0
22.9B
26.9B
10.5B
2009
2010
2011
2012
6
6
Wharf reported a record profit and is paying
a record dividend
FY2012
HK$M
30,856
FY2011
HK$M
24,004
% Change
Core Profit*
11,040
8,083
+37%
Profit Before IP Revaluation Surplus
13,927
6,727
+107%
Profit after IP Revaluation Surplus
47,263
30,568
+55%
Earning Per Share
- Core*
- Attributable to Shareholders
$3.64
$15.60
$2.70
HK$10.22
+35%
+53%
$1.65
HK$1.06
+56%
Turnover
Dividend Per Share
*Exclude IP revaluation surplus and exceptional items
+29%
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7
Concentration of development completion in
Singapore and Hong Kong was much higher in 2011
than in 2012
Development Properties Revenue
(HK & Singapore)
$9.7B
$10
Others
HK$0.3B
$8
One
Island South
HK$3.3B
$5
Scotts
Square
HK$6.1B
$3.8B
Others
HK$0.5B
$3
One Midtown
HK$2.6B
2011
Orchard View
HK$0.7B
2012
8
Profit before IP revaluation surplus
increased to $8.7B
$8.7B
2012 Profit before IP
$7.3B
2012 Core profit
revaluation surplus
+4%
over 2011
-20%
over 2011
Core Profit by Group
7%
WPSL
16%
WPL
77%
Wharf
Wharf ’s
contribution
increased to 77%
(2011: 45%)
Core Profit by Segment
DP contribution
16%
decreased to
Logistics
38% due to
& others
46%
smaller sales
Investment
38%
properties
recognition
Development
properties
(2011: 58%)
Profit before IP revaluation surplus
2009-2012
$9
$7
$5
$2
$0
4.4B
2009
8.4B
8.7B
2011
2012
5.0B
2010
9
Solid Operating Results by WPL
Foundation is built for future growth
Contracted Sales
2009-2013
$10
$6.9B
contracted
sales 2012
$3.1B
net order
book
$10B
7.1M
contracted sale
target 2013
gross
land bank
+99%
over 2011
+520%
over 2011
$8
$5
10.0B *
+45%
over 2012
achieved sales
Acquired 1.4
million sq. ft
of new land
in 2012 & Jan
2013
6.9B
$3
3.5B
1.7B
$0
0.5B
2009
2010
2011
2012
2013
*provisional data
10
Financial Highlights
FY2012
(HK$M)
FY2011
(HK$M)
% Change
Turnover
33,124
34,558
-4%
Operating Profit
15,570
17,730
-12%
Core Profit*
7,267
9,038
-20%
Profit Before IP Revaluation Surplus
8,734
8,359
+4%
IP Revaluation Surplus
(net of Tax & NCI)
Profit after IP Revaluation Surplus
18,201
14,507
+25%
26,935
22,866
+18%
Earning Per Share
- Core*
- Attributable to Shareholders
HK$3.58
HK$13.26
HK$4.45
HK$11.25
-20%
+18%
Dividend Per Share
- First & Second Interim
- Special Dividend
- Total
HK$0.85
HK$0.25
HK$1.10
HK$0.25
HK$0.25
HK$0.50
+240%
+120%
*Exclude IP revaluation surplus and exceptional items
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11
Prudent Financial Management Continues
Net Debt / (Cash)
31.12.2012
(HK$’B)
31.12.2011
(HK$’B)
Wheelock (exclude Wharf and WPSL)
20.4
15.0
Wharf
55.6
43.5
WPSL
(2.8)
(5.5)
Group Total
Gearing (Net Debt to Total Equity)
73.2
25.6%
53.0
22.5%
Diversified funding sources
WPL’s contracted sales
$6.9B
USD bond raised in Feb 2012
$4.2B
Dividend income
$2.1B
(2012)
(US$535 million)
(from Wharf and WPSL)
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12
3. Wheelock Properties Limited
Spearheads Hong Kong
Property Development
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13
Sales Target of $10B in 2013
Strong sales in 2012
2011
2012
Chg %
Contracted Sales
$3.5B
$6.9B
+99%
Recognized Sales
$3.4B
$3.0B
-12%
Net order book
$0.5B
$3.1B
+520%
2013 Target
Sales Target*
HK$10B
New projects in pre-sales
pipeline
Austin Station
One Bay East**
Planned completion
Kadoorie Hill
*projects under WPL’s management
**previously known as Hoi Bun Road
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14
Solid Sales Performance in 2012
1.1M
square feet GFA sold
One Midtown
Lexington Hill
Kadoorie Hill
Projects
Sold
100%
99%
85%
+85%
over 2011
$6.9B
contracted sales 2012
+99%
over 2011
Operating profit margin
Average above 40%
Product Type
Contracted Sales
(Billion)
GFA Sold
(sq. ft.)
Kadoorie Hill
Residential
1.77
26%
92,000
9%
Lexington Hill
Res / Comm/ Carpark
1.28
19%
99,000
9%
One Midtown
Industrial
2.11
31%
502,000
46%
Delta House
Non-core commercial
1.32
19%
349,000
32%
Bellagio Mall
Non-core commercial
0.30
4%
37,000
3%
Others
Res / Comm/ Carpark
0.13
1%
12,000
1%
6.91
100%
1,091,000
100%
Total
15
Strong Pipeline of Projects in the next 5 years
Substantial growth potential ahead
13
Projects
in the
pipeline
2013
2014
2015
2016
2017
& onwards
New
projects in
pre-sales
pipeline
Austin Station
One Bay East
Mount Nicholson
Hung Luen Road
High Street
TKO 119
Yau Tong Godown
77 Peak Road
TKO 125
Yau Tong Bay
So Kwun Wat
11 Plantation Road
Shau Kei Wan Road
Planned
completion
Kadoorie Hill
Mount Nicholson
Austin Station
Lexington Hill
77 Peak Road
Hung Luen Road
One Bay East*
TKO 119
TKO 125
So Kwun Wat
Yau Tong Godown
High Street
Shau Kei Wan Road
11 Plantation Road
Yau Tong Bay
*previously known as Hoi Bun Road; **The above pre-sales pipeline and completion date are subject to market condition
16
16
Diversified Land Bank in HK
7.1M
Square feet of
Gross
Current Land
Bank
Gross Land Bank
GFA by Location
Gross Land Bank
GFA by Usage
30%
Kowloon
West
Kowloon East
27%
Commercial
70%
Residential
58%
HK Island
10%
NT
5%
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17
Replenished 1.4M sq. ft. Land Bank in 13 months
1 .4M
square feet new land
acquired in 2012 & Jan 2013
$6.1B
land cost invested
Acq.
Date
New land acquisition
GFA by Location
HK Island
9%
Kowloon East
65%
N.T.
26%
2012
Project
GFA
sq. ft.
Land
Cost
(HK$)
AV
(HK$
psf)
Jan-12
Tseung Kwan O 119
488,200
1.86B
3,800
Dec-12
Tseung Kwan O 125
429,700
1.97B
4,600
Oct-12
High Street
69,200
0.35B
5,000
Nov-12
Shau Kei Wan Rd
57,800
0.56B
9,700
1.0M
4.7B
377,000
1.39B
1.4M
6.1B
2012 Total
2013 Jan-13
So Kwun Wat
2012 & Jan-2013 Total
3,700
18
Sizable Land Bank on the Peak
560,000
Square Feet of Gross Area
•
•
•
•
•
Mount Nicholson
Peak Portfolio
Half-mile private road
Exclusive estate
HK’s most prestigious
address
Overlook Victoria Harbour
Easy access to Central
50:50 JV with Nan Fung Development
Pre-Sales target in 2014
Completion target in 2014/15
•
•
•
•
•
77 Peak Road
11 Plantation Road
1 Plantation Road
Chelsea Court
Strawberry Hill (remaining houses)
20
19
Kowloon East is a Prime Focus
4.1M
8
square Feet
Gross
Land Bank
Commercial and
Residential
Projects
Development Potential
✓Leveraged on the “Energizing Kowloon East” policy
initiative
✓Coupled with infrastructure development
• Kai Tak Cruise Terminal
• Shatin - Central MTR
• Monorail
Kowloon East
Gross Land Bank by Usage
CBD2
Commerical
37%
4
Projects
at the
heart of
Kowloon
East
Residential
63%
20
20
17 Projects in Land bank
Properties
Usage
Gross Area
(000’ sq. ft)
WPL’s Att.
Area
(000’ sq. ft)
Res.
Res.
Res.
Res.
Res.
Res.
Res.
Res.
Res.
Res.
Res.
Res.
Res.
Subtotal
1,282*
829
596
488
430
377
325
256
235
69
58
16
2
4,963
641
426
306
488
430
377
83
132
121
69
58
16
2
3,149
Com.
Com.
Com.
Com.
Subtotal
915
590
43
581
10
2,139
915
590
43
299
10
1,857
Total Land Bank
7,102
5,006
Residential
Austin Station
Kowloon Godown
Yau Tong Bay JV
Tseung Kwan O 119
Tseung Kwan O 125
So Kwun Wat
Mount Nicholson
Yau Tong Godown
Peak Portfolio
High Street
Shau Kei Wan Rd.
Kadoorie Hill
Lexington Hill
7.1M
sq. ft.
Gross land bank
5.0M
sq. ft.
Attributable land
bank
Commercial
Hoi Bun Road
Hung Luen Road
World Tech Centre
Wharf T &T Square
Others
*Jointly managed
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21
Austin Station,
prime city centre living
1,282,000
Square feet of Gross Floor Area
• Heart of
West Kowloon cultural district
• Atop Austin MTR Station
• Next to future Guangzhou-Shenzhen-Hong
Kong Express Rail Link terminus
• 50:50 JV with New World Development
• Pre-Sales target in 2013
• Completion target in 2014/15
22
One Bay East*,
Grade A offices in CBD2
915,000
Square Feet Gross Floor Area
•
Heart of Kowloon East CBD2
•
Overlook Victoria Harbour and future Kai Tak
Cruise Terminal
•
•
Connected to Ngau Tau Kok MTR
•
Pre-Sales target in 2013/14
•
Completion target in 2015
*Previously known as Hoi Bun Road commercial project
23
Hung Luen Road,
Harbour front development
590,000
Square Feet Gross Floor Area
•
Overlook Victoria Harbour
•
Easy access to future Whampoa MTR (2015
in service)
•
Pre-Sales target in 2014
•
Completion target in 2015
24
24
High Street,
top-notch school networks
69,200
Square Feet Gross Floor Area
•
Excellent Location with close proximity to Central
•
Within top notch school networks
•
Pre-Sales target in 2014
•
Completion target in 2016
25
25
Tseung Kwan O, MTR-connected residences
488,200
S qua r e Feet G r o ss Fl o or Ar ea
•
Connected to TKO MTR
•
Vibrant Neighborhood
•
Pre-Sales target in 2015
•
Completion target in 2016
26
26
Yau Tong Godown,
Harbour view residences
256,000
Square Feet Gross Floor Area
•
Overlook Victoria Harbour / Lei Yue Mun
•
Easy access to Yau Tong MTR
•
Pre-Sales target in 2015
•
Completion target in 2016
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27
Prime Assets in Central
Wheelock
House
199,300 sq. ft. GFA
✓100% occupancy in 2012
✓Office unit rent rose 15.9% YoY
✓HK$4.1B valuation at 2012 year end
$9.7B
Combined Valuation
Crawford
House
188,800 sq. ft. GFA
✓H&M as retail anchor
✓100% office occupancy
✓Office unit rent rose 18.1% YoY
✓HK$5.6B valuation at 2012 year end
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Business Strategies
Focus in Hong Kong
Develop Quality Products & Services
Build Customer-focused Brand
Improve Asset Turnover
Capture Land Banking Opportunities
Commit to Corporate Social Responsibility
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4. Wheelock Properties (Singapore) Limited
Premier Developer of Luxury Homes
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30
Concentration of development completion in
Singapore was much higher in 2011 than in 2012
•
•
•
Turnover -80% to HK$1,307 million
Operating Profit -81% to HK$734 million
Profit after tax -90% to HK$396 million for FY2012
Scotts
Square
85% of
apartments
sold at the year
end at ASP of
S$4,000 psf
* WPSL’s financials was restated based on HK Accounting Standard)
Orchard
View
100% of
apartment
sold at year
end at ASP S
$2,845 psf
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3 Key projects in the pipeline
WPSL Land Bank
Project
Investment
Properties
Development
Properties
Wheelock Place
Scotts Square (retail)
Total IP
Ang Mo Kio
Ardmore Three
Scotts Square (residential)
Hangzhou Fuyang
Shijiayuan
Total DP
Total Land Bank
Projects in the pipeline
GFA (‘000
sq.465ft.)
131
596
696
145
44
3,267
4,152
4,748
Ardmore
Three
Construction
underway;
completion in
2014
Hangzhou
project
Construction
on schedule,
expecting
completion in
2018
New Land Acquisition in Jan 2013
Location: Ang Mo Kio
(Beside Chij St. Nicholas Girls’School)
Site area: 198,940 sq. ft
GFA: 696,300 sq. ft.
Land cost: S$550M
AV: S$790 psf
Accessibility:
1.Future Mayflower MRT station, the new
Thomson Line
2.The Central Expressway
3.The Seletar Expressway
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Prime Assets Generating Stable Income
S co tts
Square
Re t a i l Po d i u m
Wheelock
Place
130,900 sq. ft. GFA
465,400 sq. ft. GFA
•
99% occupancy for retail & office
•
93% occupancy vs 43% in 2011
•
•
78% lease renewal retention
•
•
Orchard Road prime property
•
Hermes, Michael Kors, On Pedder etc
Marks & Spencer flagship opened in 2012
Key Brands:
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5. Appendix
34
34
Credit Metrics
Net Debt / Total Equity
30%
23%
19.8%
16.7%
22.5%
Interest Cover
30
25.6%
15
8%
8
0%
0
2008
2009
2010
19.8
23
11.9%
15%
24.6
2011
2012
14.1
10.0
9.8
2008
2009
Net Debt / EBITDA
4.3
3
3.0
2.1
68
2.8
45
1.7
23
0
0
2009
2010
2012
90
1
2008
2011
Debt Maturity
5
4
2010
2011
2012
81.3
15.0
6.9
<1 yr
2 - 5 yrs
>5 yrs
35
35
2012 Share Price Movement
103%
Wheelock
92%
New World Dev.
73%
Wharf
57%
Kerry Prop
50%
Swire Prop
46%
Hysan
42%
Henderson
39%
Hang Lung Prop
29%
Cheung Kong
26%
Sino Land
SHKP
19%
Source: Bloomberg
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End of Presentation
Wheelock and Company Limited [HKEx Stock Code: 0020.HK]
Disclaimer
All information and data are provided for information purposes only. All opinions included herein constitute Wheelock’s
judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries and affiliates
hereby disclaim (i) all expressed, implied, and statutory warranties of any kind to user and/or any third party including
warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liability whatsoever
for any loss howsoever arising from or in reliance upon the whole or any part of the information and data contained
herein.
The photographs, images, drawings, sketches or perspectives shown in this presentation represent the artist’s
impression of the Development concerned only. They are not drawn to scale and/or may have been edited and
processed with computerized imaging techniques.
Figures are stated in HK dollars unless stated otherwise.
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