29 Mar 2010 1
Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or other similar words that express an indication of actions or results of actions that may or are expected to occur in the future. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. These forward-looking statements are based on our own information and on information from other sources we believe to be reliable. Our actual results may be materially less favorable than those expressed or implied by these forward-looking statements which could affect the market price of our shares. 2
Agenda Financial Highlights Business Review Prospects Q&A 3
Financial Highlights
Results Highlights For the year ended 31 December HK$ mil 2009 2008 Change Revenue 1,207.1 1,664.5 27.5% Gross profit 503.1 626.4 19.7% Profit from operations 536.8 394.8 36.0% Profit attributable to shareholders of the Company Dividend payout 279.0 193.4 67.6 49.4 44.3% 36.8% Basic earnings per share (HK cents) 25 18 38.9% Final dividend per share (HK cents) 4.0 1.5 166.7% Total dividend per share (HK cents) 5.5 5.0 10.0% 5
Turnover Breakdown For the year ended 31 December HK$ mil FY2009 FY2008 Change Property development 76.4 162.4 53.0% Property investment & management 282.8 225.2 25.6% Hospitality investment & management Garment manufacturing and branded products distribution 91.4 729.3 109.2 1,123.6 16.3% 35.1% Others 27.2 44.1 38.3% Total 1,207.1 1,664.5 27.5% 6
Balance Sheet HK$ mil 31 December 2009 31 December 2008 Total assets Net assets Investment properties Leasehold land & land use right Properties for sale 16,978.1 9,694.1 10,532.0 38.3 3,432.5 15,788.0 8,680.2 10,098.1 41.8 3,115.9 7
Key Financial Indicators 31 December 2009 31 December 2008 Current ratio Gearing ratio (net debt to equity) Bank balance and cash (HK$mil) 2.88 43.0% 700.2 3.14 51.5% 496.2 8
Strong Asset Growth HK$ M Net Assets (Shareholders Equity) 9
Business Review
Property Development Projects in Progress Forfar Presale launched in July 2009 with 65% of the units have been sold to-date, generating HK$876M of sales Obtained occupation permit in January 2010 Sales revenue to be recognized in FY2010 Seymour Launched for presale in November 2009 with 85% of the units sold to-date, sales totaling HK$3B Foundation work has been completed and superstructure works have commenced in February 2010 Construction work is expected to be completed in 2011 Sales revenue to be recognized in FY2011 11
Property Development Projects in Progress Tai Po Town Lot Nos 186, 187, 188 Foundation works have been completed Superstructure works have commenced Construction to be completed in phases between 2011 and 2012 Approx. GFA is expected to reach 2M sq.ft. upon completion Belle Vue Residences 60% of the units have been sold to-date since its pre-sale launch A total saleable area of about 433,000 sq.ft. Scheduled for completion in the1h2010 12
Property Investment & Management Quality asset portfolio of approx. 3.5M sq. ft. Grade A office, retail and industrial properties with a GDV of HK$9.1B* Landmark East Strong leasing momentum towards the last few months of 2009 Major tenants include HKSAR Government, The Link REIT, AIA, Cigna, adidas, Levi s and Mott MacDonald Hong Kong Benefited from decentralization trend of office space from traditional commercial districts W Square Achieved 98% leased to-date Other Industrial Properties Maintained an average occupancy rate of close to 90% *As at 31 December 2009 13
Hospitality Investment and Management Adversely affected by the global economic downturn in first half but recorded strong rebound in the last quarter of 2009, outperforming peers in their respective locations Occupancy Rate:- Lanson Place Jin Lin Tian Di (Shanghai): 95% Lanson Place Central Park (Beijing): 90% Lanson Place Jin Qiao was soft-opened in February 2010 14
Comprehensive Development in China Residential development in Shenyang, PRC Foundation work for the initial phases have commenced in August 2009 Bulk construction for low-density residential units is scheduled to commence in 2Q 2010 Railway Network in Shenyang and locations of the two development sites Shenbei site Target to complete construction and commence pre-sale in phases in the next couple of years Shenyang Hunnan site 15
Prospects
Prospects Property Development Hospitality Investment & Management Property Investment Promising prospect for Hong Kong residential market due to: low interest rate environment short supply of new residential projects strong demand from mainland buyers for luxury developments Grasp the right market window to launch the remaining units of Forfar and Seymour Tai Po project will be launched for pre-sale in the coming years Continue to perform well against an improving operating environment Shanghai s operations expect to benefit from the launch of Shanghai Expo in May 2010 Continue to explore investment and management opportunities in gateway cities in the Asia Pacific region Ongoing momentum in local leasing market Leasing at Landmark East is expected to improve continuously as decentralization continues Stable recurring income from W Square and other industrial properties 17
Proposed Name Change Wing Tai Properties Limited Our Rationale Behind Better reflect our business focus and direction ahead Develop stronger Corporate identity Reinforce industry positioning Leverage positive awareness of the established Wing Tai brand 18
Thank You
Appendix
Shareholding Structure Wing Tai Holdings & Cheng s Family 50.66% Sun Hung Kai Properties Limited (016.HK) 13.84% Public 35.50% USI Holdings Limited (0369.HK) 100% Property Apparel Wing Tai Asia Property development Lanson Place Hospitality investment & management China Comprehensive development in China Winsor Properties (1036.HK) Property investment & management Unimix, Gieves & Hawkes 79.26% interest As of 26 March 2010 21
Financial Summary FY2009 HK$ M FY2008 HK$ M FY2007 HK$ M FY2006 HK$ M FY2005 HK$ M FY2004 HK$ M Revenue 1,207.1 1,664.5 2,209.7 2,699.4 1,767.9 1,455.8 Profit before taxation 482.8 333.8 2,031.9 1,009.5 524.0 107.8 Taxation (102.9) (61.8) (191.9) (183.6) (89.6) (10.0) Profit for the year 379.9 272.0 1,840.0 825.9 434.4 97.8 Attributable to: Equity holders of the Company 279.0 193.4 1,735.9 738.3 368.5 92.1 Minority interests 100.9 78.6 104.1 87.6 65.9 5.7 379.9 272.0 1,840.0 825.9 434.4 97.8 FY2009 HK$ M FY2008 HK$ M FY2007 HK$ M FY2006 HK$ M FY2005 HK$ M FY2004 HK$ M Total assets 16,978.1 15,788.0 14,835.7 4,783.6 4,768.1 3,036.4 Total liabilities (7,284.0) (7,107.8) (6,342.7) (1,855.6) (2,784.0) (1,610.7) Minority interests (1,566.5) (1,461.7) (1,393.2) (215.2) (127.5) (61.8) Equity attributable to the equity holders of the Company 8,127.6 7,218.5 7,099.8 2,712.8 1,856.6 1,363.9 22
Property Development Projects at a Glance USI s effective interests: 7.5% 33.3% 87.5% 40.0% 50.0% 95.9% 30.0% Sales: HK$11.2B GFA: 1.7M sq. ft. Sales: HK$900M GFA: 263K sq. ft. Sales: HK$430M GFA: 80K sq. ft. Sales: HK$3.8B GFA: 492K sq. ft. Sales: HK$2.2B GFA: 184K sq. ft. 63% sold Sales: HK$876M GFA: 108K sq. ft. 85% sold Sales: HK$3.0B GFA: 173K sq. ft. Achieved total sales of approx. HK$22.4 billion* * As at 26 March 2010 23
Property Investment & Management Quality Asset Portfolio Property Location Total GFA (sq. ft) (31 December 2009) Grade A Office W Square Wanchai 129,000 Landmark East Kwun Tong 1,335,000 Industrial Building Regent Centre Kwai Chung 659,000 Winner Godown Building Tsuen Wan 497,000 Unimix Industrial Centre San Po Kong 391,000 Lucky Industrial Building Kwai Chung 293,000 Shui Hing Centre Kowloon Bay 187,000 3,491,000 24
Hospitality Management & Investment Strong Brand Recognition Location Total no. of apartments/ suites Lanson Place Boutique Hotels & Residences Causeway Bay, Hong Kong 194 Lanson Place Jin Lin Tian Di Residences Shanghai, the PRC 106 Lanson Place Central Park Beijing, the PRC 105 Lanson Place Winsland Singapore 67 Lanson Place Ambassador Row Kuala Lumpur, Malaysia 221 Lanson Place Kondo 8 Kuala Lumpur, Malaysia 132 Lanson Place Jin Qiao Shanghai, the PRC 206 Lanson Place Bukit Ceylon Kuala Lumpur, Malaysia 115* Total No. of Units 1,146 * Under construction; Tentative only Small Luxury Hotels of the World Boutique Hotel of the Year 25
Prestigious Partnership Network Hongkong Land Lanson Place Central Park Residences, Beijing Strategic partnership for comprehensive development in China Beijing Vantone Lanson Place Central Park Residences, Beijing MSREF Lanson Place Hotel, Hong Kong Lanson Place Jin Lin Tian Di Residences, Shanghai Infiniti Mall, Shanghai Wachovia Securities Seymour, Hong Kong Nan Fung Group The Grandville, Hong Kong The Giverny, Hong Kong 3 sites in Pak Shek Kok, Tai Po, Hong Kong Sino Land 3 sites in Pak Shek Kok, Tai Po, Hong Kong K. Wah 3 sites in Pak Shek Kok, Tai Po, Hong Kong Sun Hung Kai Properties Currently owns 13.84%* interest in USI MTRC The Waterfront, Hong Kong Temasek The Waterfront, Hong Kong * As of 26 March 2010 26