2017 Interim Results Investor Presentation
Forward-Looking Statements 2 Certain statements contained in this presentation maybe viewed as forward- looking statements. Such forward- looking statements represent the Company’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
1H2017 Results | Agenda 3 Financial Motor Business Consumer Products Key Initiatives Review Review & Outlook Review & Outlook
Financial Review | 2017 Half Year Results 4 REVENUE (HK$’M) PROFIT ATTRIBUTABLE TO SHAREHOLDERS (HK$’M) ↑ 14.5% ↑ 5.5% 232 23,044 220 20,121 1H2016 1H2017 1H2016 1H2017
Financial Review | Revenue by Business Segment 5 REVENUE BY BUSINESS SEGMENT 1H2016 1H2017 0.1% 0.1% 76.2% 65.2% 23.7% 34.7% Motor Business Consumer Products Business Others
Financial Review | Revenue by Market 6 REVENUE BY MARKET 1H2016 1H2017 7.3% 10.3% 65.6% 59.7% 27.1% 30.0% Mainland China Hong Kong and Macao Other Markets
Financial Review | Earnings and Dividend 7 For the six months ended 30 June 2017 Return on Equity Return on Capital Employed (Annualised) (Annualised) 4.9% 5.2% 4.0% 4.5% 1H2016 1H2017 1H2017 1H2016
Financial Review | Earnings and Dividend 8 For the six months ended 30 June 2017 HK$’M 1H2017 1H2016 % Basic earnings per share (HK cents) 12.66 12.01 5.4% 5.05 4.75 6.3% Interim dividend per share (HK cents) 30 June 31 Dec HK$ % 2017 2016 5.31 5.05 5.1% Net asset value per share
Financial Review | Financial Position 9 HK$’M 30 June 2017 31 Dec 2016 Non current assets 8,846 8,694 Current assets 16,322 16,721 Current liabilities 10,628 10,431 Non-current liabilities 4,819 5,740 Net assets 9,721 9,244 Non-controlling interests 490 512 Shareholder funds 9,231 8,732
Financial Review | Net Gearing 10 HK$’M 30 June 2017 31 Dec 2016 30 June 2016 Cash and bank deposits 1,713 1,160 2,068 Total debt 7,019 7,424 8,305 Net debt 5,306 6,264 6,237 Shareholders’ funds 9,231 8,732 9,018 Total capital 14,537 14,996 15,255 Net gearing ratio 36.5% 41.8 % 40.9%
Financial Review | Consolidated Cash Flow Statement 11 1H2017 1H2016 Change Net cash generated from operating activities 871 1,788 (917) Net cash (used in)/from financing activities (530) 1,324 (1,854) Net cash from/(used in) investing activities 252 (2,232) 2,484 Dividend paid to shareholders of the Company (68) (117) 49 Net increase in cash and cash equivalents 525 763 (238)
1H2017 Results | Agenda 12 Financial Motor Business Consumer Products Key Initiatives Review Review & Outlook Review & Outlook
13 Motor Business Motor Business Sales, distribution and servicing of motor vehicles Motor Related Business Vehicle repair, used car sales, parts trading, vehicle rental, motor financing, auto insurance, yacht sales, and engineering projects
Motor Business | Performance Highlights 14 SEGMENT REVENUE SEGMENT RESULT FROM SEGMENT MARGIN (HK$’M) OPERATIONS (HK$’M) ↓ 1.9% ↓ 9.3% ↓4.9 pt 10.7% 547 ↓0.8 pt 15,328 15,041 496 1,191 918 100 8.4% 70 2,619 7.6% 2,873 151 5.8% 306 ↑ 1.1 pt 11,264 11,504 2.4% 275 1H2016 1H2017 1.3% 141 1H2016 1H2017 1H2016 1H2017 Mainland HK & Others China Macao Mainland China HK & Macao Others Mainland China HK & Macao Others
Motor Business | Revenue by Market 15 REVENUE BY MARKET 1H2016 1H2017 6.1% 7.8% 76.5% 73.5% 18.7% 17.4% Mainland China HK & Macao Other Markets
Motor Business | Mainland China 16 OPERATION REVIEW • Segment Revenue (RMB) Revenue increased despite unit sales ↓ +6.7% dropped due to brand portfolio +2.1% (HKD) upgrades Segment Result from Operations (RMB) • Improved profitability from: ↓ • Upgraded brand portfolio +104% +95.0% (HKD) • Inventory and promotion controls • Customer loyalty initiatives • Motor-related business grew due to: • +41% in commission income from motor financing • +191% finance leasing portfolio • Enhanced cross selling incentives
Motor Business | Mainland China 17 DEALERSHIPS SALES (RMB) Motor Brands 4S Shops Showrooms Audi 6 -- New Cars Sales Revenue (RMB) +7.4% Bentley 7 -- Chevrolet 3 -- After-sales service revenue (RMB) +3.8% Ferrari / Maserati 3 -- Honda 11 4 After-sales serviced units >520k Isuzu / Qingling 4 2 Lexus 8 1 Dealership Sales Share (RMB) 4 1H2016 1H2017 Mercedes Benz -- 10% 10% Nissan 4 -- SGM Buick 5 -- Toyota 22 7 90% 90% Others 2 1 Total June 30, 2017 79 15 New car sales After-sales service
Motor Business | Mainland China 18 OUTLOOK • Optimize vehicle brand portfolio • Manage promotions, inventory and service satisfaction • Build finance lease portfolio • Promote cross selling • Expand dealership network
Motor Business | Mainland China 19 Recent 4S Dealership Acquisition in Eastern China • 2 Mercedes-Benz dealerships • 1 Audi dealership • Authorisations for 3 Mercedes- Benz dealerships • Increased luxury brand exposure and market penetration
Motor Business | Hong Kong and Macao 20 OPERATION REVIEW • Segment Revenue (HKD) Market distortion from an EV ↓ -8.8% subsidy and new diesel regulations Segment Result from Operations (HKD) • DCH sales were further ↓ -50.7% impacted by model launch and changeover timings • Profitability was additionally impacted by: • Yen appreciation • Stock provisions • Timing of principal incentives payments
Motor Business | Hong Kong and Macao 21 CIVIC TYPE R
Motor Business | Hong Kong and Macao 22 OUTLOOK • Sales improvement after model changes • Margin improvements from better Yen forwards • Ongoing CRM activities: • Service centre enhancements • Faster vehicle service turnaround • Extended service hours • Pipeline of engineering and fleet projects • New projects under tender • 11 Princess yachts scheduled for 2H2017 • 2018 contract for 130ft Princess M class super- yacht
Motor Business | Hong Kong and Macao 23 M-Class Super Yacht
Motor Business | Hong Kong and Macao 24 Optare 19-Seater (Wheelchair Accessible)
Motor Business | Other markets 25 OPERATION REVIEW • Taiwan revenue decreased due to: • Audi dealership market exit Segment Revenue (HKD) ↓ • Reduced demand for coaches from -22.9% tourism decline • Entry of new players in CV market • Singapore revenue decreased due to: Segment Result from Operations (HKD) • Expiration diesel replacement ↓ -30.0% incentives • Slowdown in construction • High COE Prices • Segment result decreased due to Euro V inventory clearance in Singapore OUTLOOK • • Vehicle range extension Focus on launch of new Euro VI at Taiwan assembly plant models in Singapore
1H2017 Results | Agenda 26 Financial Motor Business Consumer Products Key Review Review & Outlook Review & Outlook Initiatives
27 Consumer Products Business The consumer product segment is comprised of (i) food distribution, trading, Food and FMCG manufacturing, retail and home brand Distribution, trading, development (ii) fast moving consumer manufacturing, brands and retail goods (FMCG) distribution, (iii) electrical products distribution, (iv) healthcare distribution and (iv) logistics solutions. The Healthcare products distribution company distributes over 1,000 brands in a diverse range of channels across mainland China, Hong Kong, Macao, Taiwan, Electrical products distribution Singapore, Thailand, Malaysia, Japan, Indonesia, the Philippines and Brunei. Logistics solutions
Consumer Products Business | Performance Highlights 28 SEGMENT REVENUE (HK$’M) SEGMENT RESULT FROM OPERATIONS (HK$’M) ↑ 67.3% ↑ 112 % 7,994 121 1,444 22 57 4,778 272 143 4,306 119 2,574 -44 -56 2,244 1,932 -6 1H2016 1H2017 1H2016 1H2017 1H2016 1H2017 Mainland China Hong Kong and Macao Other Markets Mainland China Hong Kong and Macao Other Markets
Consumer Products | Segment Revenue by Market 29 SEGMENT REVENUE BY MARKET 1H2016 1H2017 28.1% 40.4% 5.7% 18.0% 53.9% 53.9% Mainland China HK & Macao Other Markets
Consumer Products Business | Mainland China Food and FMCG 30 OPERATION REVIEW • LF Asia China consolidation Segment Revenue (RMB) ↓ • -1.0% Tighter credit and inventory controls -5.6% (HKD) • Under-performance of key brands Segment Result from Operations (RMB) • Stock-clearing discounts ↓ -64.5% • Closure of loss-making units -57.5% (HKD) • Infrastructure and resource integration OUTLOOK • Continue turnaround measures • Review partnerships and M&A opportunities
Recommend
More recommend
