New World Development : FY2024 Annual Results Presentation (Analyst Briefing)

Published: 2024-09-26 05:00:06 ET 17.HK

FY2024 ANNUAL PRESENTATION

ANALYST BRIEFING

26 September 2024

W E C R E AT E , W E A R E A R T I S A N S , W E A R E C S V

resilience.reset.reborn.

DEVELOPMENT PROPERTIES

PREMIUM BRAND DELIVERS RESILIENT DP SALES

Pavilia Collection: Total Contracted Sales

~HKD100B

Pavilia Brand

Others

~HKD9.3B

~HKD10.1B

~HKD20.1B

~HKD16.0B

~HKD37.3B

~HKD2.3B

Gross Contracted sales

Gross Contracted sales

Gross Contracted sales

Gross Contracted sales

Gross Contracted sales*

Gross Contracted sales

•

Tin Hau

•

Tsuen Wan

•

Clear Water Bay

•

North Point

•

Tai Wai

•

Kai Tak

•

358 units

•

983 units

•

680 units

•

611 units

•

3,090 units

•

1,305 units

(Selected projects)

2014

2017

2017

2018

2020

2024

2

Note: * Recorded from launch

DEVELOPMENT PROPERTIES

INNOVATIVE DESIGN AND THE POWERFUL NWD BRAND

Unique

Innovative

NWD / Pavilia

10大發明

brand

Effective

Attracting customers

sales strategy

through practical

innovations

The Pavilia Farm

Broke HK record in subscription & unit price

The Pavilia Forest

Best-selling project newly- launched in Kai Tak runway area in past 3 years

* Percentage of no. of units sold over total units launched

3

INVESTMENT PROPERTIES

SOLID GROWTH SINCE 2008

STRONG K11 GROWTH

FY20-24 CAGR (Segment Results)

K11 MUSEA

+32.4%

K11 Art Mall

+10.9%

NWD IP

+10.0%

FY20

FY21

FY22

FY23

FY24

Musea

Art Mall

4

Resilience. Reset. Reborn.

SECTION ONE

BUSINESS RESET

REVALUATION &

REDUCING DEBT &

IMPAIRMENTS TO

INTEREST, ENSURING

FACILITATE

LIQUIDITY & FINANCIAL

RESET

FLEXIBILITY

with diversified funding

sources

BEGINNING OF

RATE CUT CYCLE

SOLID BUSINESS

FUNDAMENTALS & LONG-

TERM EARNINGS

GROWTH

as mega IPs completing and

robust DP pipeline

contributing

6

SITUATION UPDATE

Significant corporate action to reposition NWD around its core businesses, and optimize cost structure to maximize value to shareholders

Illustrative Structure After the Transaction

Benefits of the Transaction

NWD

K11 Asset Owner

Total consideration: HK$209m

K11 Concept

Management

(Asset Operator)

K11 Asset-Light

1

2

3

Prioritize on NWD's core businesses

Optimize cost structure and improve ROA

Flexibility to adjust to evolving market conditions

7

Resilience. Reset. Reborn.

SECTION TWO

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

NAVIGATING THROUGH A CHALLENGING ENVIRONMENT

Core Operating Profit (1) (2)

Segment Results (2)

Loss Attributable To Shareholders

HK$6,898M

-18% YoY

HK$7,375M

-23% YoY

IP

K11

+9% YoY

+12% YoY

HK$19.7B

Non-cash losses

Revaluation /

NWS disposal

impairment

HK$9.2B

HK$8.3B (3)

G&A (2)

CAPEX (2)

Gross Debt Reduction (2)

HK$4.2B

-17% YoY

HK$14.8B

-23% YoY

HK$12.4B

-8% YoY

1. Core Operating Profit is defined as profit from continuing operations excluding (a) changes in fair value of investment properties, (b) taxation, (c) financing income and costs, (d) remeasurement of cost of disposal, (e) gain or loss on disposal of non-core assets and (f) impairment

loss on or write back of loss allowance on development properties, property, plant and equipment, rights-of-use assets and non-current assets classified as assets held for sale

2.

From continuing operations

9

3.

As disclosed in 1H24 results

Resilience. Reset. Reborn.

SECTION THREE

OUR DELEVERAGING

STRATEGY

Disclaimer

New World Development Co. Ltd. published this content on September 26, 2024 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on September 26, 2024 at 08:59:04 UTC.