MTR Corporation

Company Overview November 2020 to December 2020 Forward-looking statements

Certain statements contained in this presentation may be viewed as forward-looking statements. Such forward- looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements.

Page 2 COVID-19 update (Recurrent businesses)

For 1H2020, the estimated total financial impact of the COVID-19 outbreak on recurrent profit was ~HK$5 billion, mainly due to: • Lower patronage • Rental concession to tenants at station kiosks and shopping malls since February • Lower advertising revenue • Negative financial impact on Mainland & International businesses

Since July 2020 • Domestic Services average weekday patronage declined in July (-33.0% YoY) and August (-38.6% YoY), after the 3rd wave of COVID-19 outbreak. The decline has narrowed in September (-22.8% YoY) and October (-3.4% YoY), due to the gradual recovery and low base in 2019 • Revenue loss during station closures (mainly cross-boundary stations) • Rental concession remains, on case-by-case basis. • Advertising activities remained weak • businesses continue to improve, following the re-opening in most cities. • Overseas operations remain negatively affected, given the global outbreak.

Page 3 COVID-19 update (Transport operations)

• The decline widened again after the 3rd wave of COVID- Overall Patronage (‘000)

19 outbreak, with renewed work-from-home 20% 6,000 5.1% 1.7% 1.8% 2.6% 2.3% 1.3% -1.3% 10% arrangement, tightened social distancing and school 5,000 -5.4% -7.9% 0% -16.0% 4,000 -17.5% (10%) -6.7%-23.8% suspension. (20%) 3,000 -19.6% (30%) -23.6% -27.7% 2,000 (40%) • Lo Wu, and West stations remain -35.0% -37.6% -42.5% (50%) 1,000 -44.9%-46.4% closed. -49.6% (60%)

0 (70%)

Jul

Apr Oct

Jan Jun

Mar

Feb

Sep Aug Nov Dec • Significant drop in airport traffic. May 2018 2019 2020 • Overall tourists arrival fell over -90% YoY for 9M2020 2019 %YoY 2020 %YoY

• “20% Rebate for Every Octopus Trip” will be offered Patronage 1H2020 Jul Aug Sep Oct from 1 July 2020 to 1 January 2021. (% YoY) 2020 2020 2020 2020 Domestic Services -32.0% -33.0% -38.6% -22.8% -3.4% • Estimated revenue forgone will amount to about $1.6 (avg. weekday) Cross-boundary -87.5% -99.7% -99.6% -99.5% -99.1% billion. The Government will bear half of the total actual (avg. daily) revenue forgone with a cap of $0.8 billion, while the AEL (avg. daily) -77.2% -88.5% -88.5% -82.7% -81.1% High Speed Rail -89.7% -100% -100% -100% -100% Corporation will shoulder the remainder. (avg. daily) Overall -36.4% -37.6% -42.5% -27.7% -6.7%

Page 4 COVID-19 update (Station commercial and Property rental)

• retail sales were -28.7% YoY for 9M2020

• Retail sales at our portfolio were negatively affected by the decline in patronage and general slowdown in retail sales, for both station kiosk and shopping malls.

• Slowdown in advertising activities

• The LOHAS, our new mall at LOHAS Park, was opened by phase (about two-third opened so far), but preleasing has been slower than expected as a result of the COVID-19 outbreak.

• Full 6-month contribution in 2H2020 from the acquisition of remaining interests in Telford Plaza II and PopCorn 2

• In our station retail business, we are considering more flexible leasing terms and enhancing the telecom infrastructure to support tenants’ new offline/online retail models.

• In our shopping malls, we are collaborating with e-commerce and online merchants who are planning to open pop-up stores across our portfolio. We are also exploring the possibility of adding more entertainment and sports facilities.

Page 5 COVID-19 update (Cost control measures)

• Staff cost - recruitment freeze

• Transport operation: cut train services

• Others: cut discretionary spending

Page 6 COVID-19 update (Property development)

• ~96% out of 503 units sold at Ocean MARINI (LOHAS Park package 9c)

• ~67% of 1,422 units sold at Sea to Sky (LOHAS Park Package 8)

• ~98% of 783 units sold at The Pavilia Farm I ( Station)

• ~75% of 1,415 units sold at The Pavilia Farm II ()

• LOHAS Park package 10 is pending presale consents

• The tender of LOHAS Park package 12 and 13 were awarded in February and September, respectively

• Subjected to market condition, aim to tender out package 5 & 6 before March 2021

• Development profit from LP6 was recognized in 1H2020

Page 7 MTR Today MTR was listed in the Stock Exchange of Hong Kong (2000) Establishment of MTR

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Merger with KCRC (2007) 1st Railway line opened (1979)

Total EBIT (HK$ billion)

Property development profit 5.7 Outside of Hong Kong (2) 2.6 5.7 Property Rental (1) 2.9 1.1 1.8 0.3 1.5 (1) 0.9 Station Commercial 0.9 1.5 1.3 Transport Operations(1) 3.9 4.2 4.4 3.7 4.1 Others(3) 4.3 6.2 (4) 12.6 13.0 Recurrent EBIT 11.2 11.7 11.7 4.2 4.4 5.0 5.4 4.7 8.2 0.4 5.1 2.2 2.5 2.6 1.7 2.0 1.7 1.3 1.3 (0.2) (0.2) (0.6) (0.3) (0.1) (2.0) (2.6)

2015 2016 2017 2018 2019 2019 Normalised 1H2020 Basis 1. Net of depreciation, amortisation and variable annual payment to KCRC 2. Net of non-controlling interests and includes business development expenses 3. Includes consultancy, , project management for HKSAR Government, share of EBIT from Octopus Holdings Limited and business development expenses 4. Recurrent EBIT: excludes property development profit 5. 2019 Normalised EBIT was estimates based on certain assumptions to represent financial information if the adverse impact of the public order events in Hong Kong on the Group’s Hong Kong businesses (HK$2.3 billion), and the provisions for the incidents of the SCL project in Hong Kong (HK$2 billion) and the South Western Railway franchise agreement in The United Kingdom (HK$0.4 billion) had been excluded.

Vision: an internationally-recognised leading company that connects and grows communities with caring, innovative and sustainable services.

Page 8 Rail + Property Business Model

Railway Share of Profit Land Land Development Development Right Opportunity

Land Premium Funding Contribution Government Developer MTR leads and coordinates the development processes including: • Agrees with Government amount of property development rights for new rail extension • Land premium is negotiated with Government on “greenfield basis”*, prior to tender being offered to developers • Tender property packages to developer partners • MTR contributes property rights, oversees the design & construction • Developers usually pay for land premium and development costs; MTR may contribute on a case by case basis • Profit sharing with MTR by percentage of profits or assets in kind or lump-sum payment

*Greenfield basis = market value ignoring the presence of the railway

Page 9 Examples of MTR “Rail + Property” Development

Tung Chung Station Development Kowloon Station Development • Total GFA: 1,030,634 sq m (Retail: 55,793 sq m; Office: 14,913 sq m) • ~12,400 residential units

Tseung Kwan O LOHAS Park Development • Total GFA: 1,650,000 sq m (Retail: 44,500 sq m) • ~25,500 residential units

• Total GFA: 1,096,169 sq m (Retail: 82,750 sq m; Office: 231,778 sq m) • ~5,800 residential units

Page 10 HONG KONG TRANSPORT OPERATIONS

Page 11 MTR system map No. of Stations: 96(1)

羅湖 (2) Lo Wu Route Length: 263 km

落馬洲(福田口岸) Lok Ma Chau ()

◼ 3 Rail Segments: Domestic Service, Airport Express and Cross-boundary Service

1. 95 heavy rail stations, 1 XRL station (ex. 68 stops) 2. 263km of heavy rail, 36km of light rail, 26 km of XRL Page 12 Market Share Hong Kong Franchised

Green Trams & Green Trams & minibuses minibuses ferries 13.0% 2.2% 14.5% 2.2%

MTR MTR 44.6% 48.8% Buses 36.0% Buses 38.7%

Jan – May 2019 Jan – May 2020

Cross-harbour Cross-boundary & HSR Airport Express 68.2% 65.1% 51.5% 48.8% 21.8% 16.3%

(1) (1) Jan-May 2019 Jan-May 2020 Jan-May 2019 Jan-May 2020 Jan-May 2019 Jan-May 2020 1. Sources: The Transport Department / Immigration Department / Airport Authority Hong Kong 2. Calculation based on the proportion of air passenger using Airport Express over the total air passenger figures reported by the Airport Authority Hong Kong 3. Market share for 2018 was rebased to reflect the impact on the opening of Hong Kong – – Macao Bridge. Page 13 Patronage

Domestic Service(1) (m) Airport Express (m)

17.7 15.7 16.1 16.6 15.8 YoY change YoY 1,577.5 1,586.5 1,637.9 1,670.0 1,568.2

change 80.0%

2.7 29.7% 937.7 2015 2016 2017 2018 2019 10M2020

Cross-boundary Service (m)

2015 2016 2017 2018 2019 10M2020 114.2 112.5 117.4 104.2 YoY

113.3 change 91.6% 7.6

2015 2016 2017 2018 2019 10M2020

1. Domestic Service comprises the Line, Line, Island Line, , , Line, , (excluding Cross-boundary service), Phase 1 and

Page 14

2018 2019 2018 2019 2018 2019 2018 2019

148 1.5 126 1.3

9.3% 7.8% 4.0% 0.5%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2018 2019 2018 2019

10.4

8.4

5.8%

(8.4%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Hong Kong Transport Operations

(HK$b)

42.6% 43.2% 41.1% 41.9% 41.9% 30 50.0%

1.7% 25 0.0%HKTO revenue Light Rail, Bus, Intercity and others Airport Express 19.5 19.5 20 -50.0%High Speed Rail 17.7 18.2 16.9 Cross-boundary Service Domestic Service 15 -100.0% EBITDA EBITDA margin (%)

10 -150.0%

8.2 8.2 6.2 7.2 7.6 7.5 5 -200.0%

0.1 0 -250.0% 2015 2016 2017 2018 2019 1H20

Page 15 Fare Adjustment Mechanism (FAM) ➢ FAM – a direct drive mechanism providing a measure of certainty for fare setting ➢ Next scheduled review in 2022/23 Fare Adjustment = 0.5 * CCPI + 0.5 * WAGE INDEX - t - Wage index: the yearly percentage change in the Nominal Wage Index (Transportation Sector) - t: productivity factor

◼ Productivity Factor ➢ t = greater of zero and 0.5 x CAGR in Productivity over a reference period (t = 0 from 2017 to 2022)

➢ Productivity: HK Transport Operations Revenue HK Transport Operations Expenses ◼ Fare Promotions – 3% rebate for Every Octopus Trip for at least 6 months (linked to profitability and service performance arrangements), and others ◼ Special applications from 2017 to 2022 ➢ Fare rise under FAM shall be reduced by 0.6 percentage point from 2017 to 2022 ➢ In 2017, it will be followed by a further 10% discount

◼ The “3.3% Rebate for Every Octopus Trip” for 2019/20 will be extended to the end of June 2020. ◼ New relief initiatives of “20% Rebate for Every Octopus Trip” will be offered from 1 July 2020 to 1 January 2021. The Government will bear half of the total actual revenue forgone with a cap of $0.8 billion. ◼ Past Fare Adjustments 2009: +2.05%, effective in June 2010 2010: +2.20%, effective in June 2011 2011: +5.40%, effective in June 2012 2012: +2.70%, effective in June 2013 2013: +3.60%, effective in June 2014 2014: +4.30%, effective in June 2015 2015: +2.65%, effective in June 2016 2016: no fare adjustment (1.49% rolled over to 2018/19) 2017: +3.14%, effective in June 2018 2018: +3.30%*, effective in June 2019 2019: no fare adjustment**

* The fare adjustment rate for the year 2019/20 should be +3.60%, by applying the FAM formula. In view of the “Affordability Cap”, 0.30% will roll over to 2021/22 ** The fare adjustment rate for the year 2020/21 should be +2.55%, by applying the FAM formula. In view of the “Affordability Cap”, 1.28% will roll over to 2021/22; and 1.27% will roll over to 2022/2023) Page 16 COMMERCIAL BUSINESSES

Page 17 Hong Kong Station Commercial Businesses

Station Kiosks

Advertising Telecommunications

Page 18 Hong Kong Station Commercial (HK$m)

10000 100.0% 89.8% 90.4% 91.6% 91.2% 90.0% 9000 85.6% 90.0%

8000 80.0% Others1 7000 6,799 70.0% Telecommunication income 6,458 5,975 Advertising 6000 60.0% 5,380 5,544 6,119 Station Retail Rental 5,891 5000 5,474 50.0% EBITDA 5,012 4,830 EBITDA margin (%) 4000 40.0%

3000 30.0%

2000 1,809 20.0%

1,549 1000 10.0%

0 0.0% 2015 2016 2017 2018 2019 1H20

1. Include revenues from other station commercial business such as station car park and publications Page 19 HONG KONG PROPERTY BUSINESSES

Page 20 MTR Investment Property Portfolio Elements (Retail) Telford Plaza (Retail) (Retail)

Plaza Ascot (Retail) (Retail)

Ocean Walk Hanford Plaza The Lane (Retail) Sun Shopping Centre (Retail) PopCorn 1 & 2 (Retail) (Retail)

Two IFC (Offices)

The LOHAS (Retail)

Paradise Mall (Retail)

◼ 13 malls – 230,263 sqm, Office – 39,410 sqm, Others – 17,764 sqm ◼ Total Area: 287,437 sqm LFA * Lettable floor area attributable to MTR, as at 30 Jun 2020 Page 21 Hong Kong Property Rental and Management

(HK$m)

8000 85.3% 90.0% 82.9% 83.6% 83.9% 83.4% 80.9%

7000 80.0%

70.0% 6000

5,055 5,137 60.0%Rental income 4,900 5000 4,741 4,533 Management fee 50.0%Rental income 4000 4,286 EBITDA 4,098 4,242 3,930 40.0% 3,668 EBITDA margin (%) 3000 2,582 30.0%

2000 2,203 20.0%

1000 10.0%

0 0.0% 2015 2016 2017 2018 2019 1H20

Page 22 New Investment Property Initiatives 46% increase in attributable GFA of existing retail portfolio

The LOHAS

◼ MTR contribution: HK$4.98 billion ◼ Profit sharing in the residential development ◼ MTR takes ownership of and invest further in fitting out the shopping mall ◼ Shopping mall GFA: 44,500 sqm ◼ Target opening: 1st phase opened in Aug 2020 (GFA ~6,000 sqm) ◼ With a large international standard indoor ice-skating rink and the biggest cinema in Tseung Kwan O Tai Wai Shopping Mall

◼ MTR contribution: HK$7.5 billion ◼ Profit sharing in the residential development ◼ MTR will take ownership of and invest further in fitting out the shopping mall ◼ Shopping mall GFA: 60,620 sqm ◼ Expected project completion in 2023

Wong Chuk Hang Shopping Mall

◼ Profit sharing in the residential development ◼ MTR will take ownership of and invest further in fitting out the shopping mall ◼ Shopping mall GFA: 47,000 sqm ◼ Expected project completion in 2023

Page 23 Hong Kong Property Development

Page 24 MTR Land bank(1) – 1.62 Million sqm GFA

• Light Rail Stop • Tai Wai Station Awarded: 0.09m sqm GFA Awarded: 0.25m sqm GFA

• Ventilation Building Awarded: 0.03m sqm GFA

• LOHAS Park Station Awarded: 0.57m sqm GFA Unawarded: 0.14m sqm GFA • Wong Chuk Hang Station Awarded: 0.30m sqm GFA Unawarded: 0.11m sqm GFA

• Awarded: 0.13m sqm GFA Awarded = 1.37m sqm GFA Unawarded = 0.25m sqm GFA

MTR Land bank Land bank acquired from KCRC 1. Definitions of landbank: - Property development rights granted by the Government as part of the “Rail + Property” model or through acquisition from KCRC - Where profit has not yet been recognised, status in Jun 2020 Page 25 Update on Hong Kong Property Development

◼ Tendering activities ➢ LOHAS Park Package 12 awarded to a subsidiary of Wheelock in Feb 2020 Land ➢ LOHAS Park Package 13 awarded to a consortium by Sino Land, Kerry Properties, Tendering K. Wah International and China Merchants Land in Sep 2020 ➢ Between now and March 2021, subject to market conditions, aiming to tender out Wong Chuk Hang Station Package 5 & 6

◼ Pre-sales of LOHAS Park Package 8, 9C and 10 and Tai Wai Station Property Sales ◼ Pre-sales of West Rail residential projects where we act as agent for KCRC

Page 26 Property Development Development profit yet to be booked: about 20,000 residential units (GFA : over 1.20 million sqm) Expected completion in the next 7 years

Property Tender Date of Developer partners Residential Units Profit model Project Status Expected Tender Gross Floor completion Award Area (sq m) Lump-sum Share of Sharing in Upfront surplus kind and/or proceeds backend

1 Tai Wai Station Oct 2014 New World 190,480 3,090 ✓ ✓ Presale 2022

2 Feb 2015 Sun Hung Kai 91,051 1,976 ✓ Superstructure 2024

3 LOHAS Park Package 7 Jun 2015 Wheelock 70,260 1,120 ✓ ✓ Presale 2021

4 LOHAS Park Package 8 Oct 2015 Cheung Kong 97,000 1,422 ✓ ✓ Presale 2021

5 LOHAS Park Package 9 Dec 2015 Wheelock 104,110 1,653 ✓ ✓ Presale 2021

6 LOHAS Park Package 10 Mar 2016 Nan Fung 75,400 893 ✓ ✓ Superstructure 2022

7 Ho Man Tin Station Package 1 Dec 2016 Goldin Properties 69,000 918 ✓ ✓ Foundation works 2022

Road King Infrastructure & 8 Wong Chuk Hang Station Package 1 Feb 2017 53,600 800 ✓ ✓ Superstructure 2022 Ping An Real Estate Sino Land & 9 Wong Chuk Hang Station Package 2 Dec 2017 45,800 600 ✓ ✓ Superstructure 2023 Kerry Properties Sino Land & 10 Yau Tong Ventilation Building May 2018 30,225 800 ✓ ✓ Foundation works 2025 CSI Properties

11 Wong Chuk Hang Station Package 3 Aug 2018 Cheung Kong 92,900 1,200 ✓ ✓ ✓ Foundation works 2024

12 Ho Man Tin Station Package 2 Oct 2018 Chinachem 59,400 843 ✓ ✓ Foundation works 2024

Sino Land, K. Wah, China 13 LOHAS Park Package 11 Apr 2019 88,858 1,880 ✓ ✓ Design 2025 Merchants Kerry Properties, Swire 14 Wong Chuk Hang Station Package 4 Oct 2019 59,300 800 ✓ ✓ Design 2025 Properties, Sino Land

15 LOHAS Park Package 12 Feb 2020 Wheelock 89,290 2,000 ✓ ✓ Design 2026

Page 27 MAINLAND OF CHINA AND INTERNATIONAL BUSINESSES

Page 28 Mainland China and Overseas Strategies

Stockholm: • MTR Tunnelbanan  Asset Light • MTR Pendeltågen : • Focus on “asset light” : • BJL4 operating rail • MTR Express • BJL14 concessions • MTR Tech  • BJL16  • Franchise operations • Emtrain • in UK, and  • BJL17 United Kingdom: • MTR Elizabeth  Hangzhou • South Western • HZL 1  • HZL 5  Asset Heavy Macao Light Rapid • Invest in urban rail networks Transit Taipa Line • SZL4 • SZL13 • Focus on development of rail networks within cities Sydney • Operating rail businesses in • Metro Northwest Mainland China (Beijing, • & Southwest Shenzhen and Hangzhou). Sweden (MTR Express) and Melbourne Trains Metro  Australia (North West Rail  Link)

Page 29 Existing Businesses on Mainland of China – Beijing

Beijing Metro (BJL16) Beijing Metro (BJL14) • 49%/ RMB 2.45billion • 50km/ 29 stations • 49% ownership/ RMB 2.45billion • 30 years • 47.3km/ 37 stations • Phase 1: Dec 2016; full line: • 30 years target opening by 2021 • Phase 1: May 2013; Phase 2: Dec 2014; Phase 3: Dec 2015 ; full line: target opening by 2021

Beijing Metro (BJL4) • 49%/ RMB 700 million • 28km/ 24 stations • 30 years • Sep 2009 Beijing Metro (BJL17) • O&M contract • 49.7km/ 20 stations • 20 years Daxing Line • Phase 1: target opening by end of 2021 • O&M contract Metro Line • 22km/ 11 stations (Southward extension of BJL4) • % Ownership/ equity investment • 10 years • Route length/ no. of stations • Concession period • Dec 2010 • Year of service commencement

Page 30 Existing Businesses on Mainland of China – Shenzhen and Hangzhou; Macao

Shenzhen Metro Line 4 (Longhua Line) • 100%/ RMB 2.4 billion • 49%/ RMB 2.2 billion • 20.5 km/ 15 stations • 54km/ 34 stations (including a 5.7km 3- • 30 years station extension under O&M) • Jun 2011 • 25 years • Nov 2012

Shenzhen Metro Hangzhou Metro • 83%/ RMB 4.91 billion • 22.4 km/ 16 stations • Up to 60%/ RMB 2.6 billion • 30 years • 51.5km/ 38 stations • 2013 • 25 years • 2019

Macao Light Taipa Line • O&M contract of ~HK$5.71 billion • 9.3 km/ 11 stations • 80 months • 2019 Metro Line • % Ownership/ equity investment • Route length/ no. of stations • Concession period • Year of service commencement

Page 31 Existing Overseas Operations - Sweden

MTR Tech (MTR Stockholm) • Total investment: HK$180 million • O&M concession for 8 years to 2017 (for 50% interest in TBT) • 6-year extension from 2017 to 2023 • 100% ownership • 100% ownership • Rolling stock maintenance for the • Contract amount: HK$20 billion Metro metro network in Stockholm fully • 108km/ 100 stations

Stockholm Stockholm under our management • Since Nov 2009

• Feb 2016

Intercity Service MTR Express • Total investment: HK$830 million • 100% ownership • 457km intercity service between Stockholm & Gothenburg • Since Mar 2015

Stockholm (MTR Pendeltågen) • O&M concession for 10 years (with option to extend a further 4 years) • 100% ownership • Contract amount: SEK30 billion (14 years) • 247km/ 53 stations

Service • Since Dec 2016 Commuter

Page 32 Existing Overseas Operations

Melbourne’s Metropolitan Rail Sydney Metro Northwest (PPP) and Services City & Southwest • O&M concession for 7 years (plus • Equity investment: AUD162 million a 3-year option) • 66km high capacity rapid transit & 31 • 60% ownership stations • 390km and 217 stations • Northwest commenced in May 2019, • 8-year concession since Nov 2009; O&M for 15 years

Australia new franchise to start on 30 Nov • City & Southwest service commence in 2017 Nov 2024, O&M for 15 years

MTR Crossrail

• O&M concession for 8 years (with an option to extend 2 more years to 10 years) United Kingdom • 100% ownership • Contract amount: GBP1.4 billion • 118km and 40 stations, including 42km of new across London • Commenced first and second section of service in 2015 and 2018, respectively.

South Western Railway • The new franchise from Aug 2017 for 7 years (with the option for an 11-month extension) • 70:30 joint venture between FirstGroup and MTR • 998.2km network serving 203 stations (186 stations operator managed) • Covers routes between London Waterloo and south western England, including Bristol, Exeter and Portsmouth

Page 33 Mainland of China and International Businesses Recurrent profit: HK$142m(1) Mainland of China and Macao ◼ Beijing MTR and Hangzhou MTR – lower contribution as impacted by COVID-19 ◼ MTR Shenzhen – lower contribution as impacted by COVID-19. HK$m Profit from recurrent businesses In Jul 2020, Shenzhen Municipal Government publicised a fare adjustment framework for Shenzhen Metro network, which will take effect from Jan 2021 for 5 years. If a suitable fare increase and adjustment mechanism are not implemented soon, the long-term financial viability of this line will be impacted. ◼ Macao LRT Taipa Line – smooth operation in general since the opening in Dec 2019, but with reduced patronage as a result of 456 the pandemic

193 142 Europe 94 ◼ 13 pendeltåg, Sweden – further improvements in 4 operations and financials. However, loss-making position will (49) (13) (15) likely remain for a year or so 1H19 1H20 1H19 1H20 1H19 1H20 1H19 1H20 1H19 1H20 ◼ MTRX, Sweden – lower contribution as impacted by COVID-19 ◼ South Western Railway franchise, UK – A provision of GBP43 million, representing the share of the maximum potential loss under the Franchise Agreement, was made in 1H2019

(533) ◼ TfL Elizabeth Line, UK – continue to support Transport for London on its phased opening

Australia Mainland of Europe Australia Others Recurrent ◼ Sydney Metro North West (SMNW) – Initial operating loss at China & Profit Macao O&M 1. Comprising net profit from Mainland of China and international business (MC&IB) subsidiaries net of ◼ (MTM) – lower contribution from non-controlling interests, and share of profit/(loss) from MC&IB associates and joint venture, and operations as impacted by COVID-19, reached agreement with after Business development expenses. 2. The loss in 1H2019 was largely dragged by the provision relating to South Western Railway the State government for a support package for the impact due to COVID-19 Page 34 GROWTH INITIATIVES IN HONG KONG

Page 35 Unprecedented HK Railway Growth

Total route length Express Rail Link (XRL) – 26km to reach 274km HK$84.4B

Shatin to Central Link (SCL) – 17km HK$90.7B Extension – 3km HK$6.9B

West Island Line – 3km South Island Line (East) – 7km HK$18.5B HK$17.2B

Service concessions Cash grant “Rail + Property”

* Project cost estimates (before capitalised interest) subject to regular review Page 36 Shatin to Central Link

Shatin to Central Link (SCL) Tai Wai to Hung Hom Section –99.95% complete ◼ The Tuen Ma Line Phase 1, from Tai Wai Station to , successfully commenced on 14 Feb 2020 ◼ Entered into a two-year Supplementary Service Concession Agreement for the operation of TML1 ◼ Full Tuen Ma Line target opening in Q3 2021 ◼ Suitable measures for Extension, Stabling Sidings, Station Extension and adjacent structures have been completed

Hung Hom to Admiralty Section – 86.9% complete ◼ Target opening in Q1 2022 is still facing challenges and efforts are being made with the aim of optimising the programme

Funding ◼ The additional funding was approved by Legislative Council in June 2020

Page 37 Railway Development Strategy 2014 A total of 7 new railway projects: ▪ Invited to proceed with detailed planning and design of (1) Extension and (2) ▪ Proposal submitted: (1) Northern Link (and Kwu Tung Station), (2) , (3) , and (4) Station ▪ Proposal to be submitted: (1) South Island Line (West) Route Project Length (km) Tung Chung Line 1.3 Extension

Tuen Mun South Extension 2.4

Northern Link (and Kwu Tung Station) 10.7

East Kowloon .8

North Island Line 5.0

Hung Shui Kiu Station -

South Island Line (West) 7.4 Line Total 34.6

Page 38 Tung Chung Line Extension project

▪ On 7th April 2020, the Government invited The Corporation to proceed with detailed planning and design of the Tung Chung Line Extension project. The Corporation has commenced procurement of the preliminary design. ▪ Tung Chung East Station will be a key component of the transport infrastructure to support the Tung Chung New Town Extension (East) development. ▪ Tung Chung West Station, located west of the existing Yat Tung Estate, will serve incumbent residents and potential housing developments nearby, including the Tung Chung New Town Extension (West) planning areas. ▪ Funding arrangement will be negotiated on the basis of the ownership approach.

Tung Chung Line Extension

Route length 1.3 km*

No. of new stations 2

Estimated cost HK$18.7 billion*

Expected construction start 2023 Expected completion 2029*

Source: LegCo document * Expected cost of HK$18.7 billion (December 2016 prices) includes the cost of Airport Railway Extended Overrun (AREOT) (Remaining Section). Route length of 1.3 km does not included the AREOT of about 460-metre. The AREOT (Remaining Section) is targeted to be in place by 2032. Page 39 Tuen Mun South Extension project

▪ On 29th May 2020, the Government invited The Corporation to proceed with detailed planning and design of the Tuen Mun South Extension project. The Corporation will immediately proceed with the procurement of the design. ▪ Tuen Mun South Station, located near the Tuen Mun Pier, will improve the railway services in Tuen Mun South. ▪ The proposed intermediate station, located in Tuen Mun Area 16, will unleash the housing development potential in the area. ▪ Funding arrangement will be negotiated on the basis of the ownership approach.

Tuen Mun South Extension

Route length 2.4 km

No. of new stations 2

Estimated cost HK$11.4 billion*

Expected construction start 2023 Expected completion 2030

Source: LegCo document * Expected cost of HK$11.4 billion (in December 2015 prices)

Page 40 ESG Strategy and Initiatives

Environment Green transport

Social Governance Benchmark with best Create value for society practices

We are committed to operating responsibly as we connect and grow communities with a caring service. Fulfilling our long- term fiduciary responsibility, we incorporate ESG considerations into our operation to create value for all our stakeholders.

Page 41 2019/2020 Environmental Initiatives

Efficient Use of Energy: • Reduced electricity consumption per passenger-kilometer by 12% in our heavy rail network when compared with 2008 levels • Reduced electricity consumption in our investment properties portfolio by 12% when compared with 2013 levels, meeting the 2023 target

Climate Change: • Published a Climate Change Strategy to integrate climate change considerations into business strategy to ensure that climate risks are properly addressed in our operations

Pollution Prevention and Biodiversity: • Continued to adopt air filtration technologies to improve indoor air quality, implemented various noise control measures to minimise nuisance and actively managed high ecological value wetlands to protect biodiversity

Page 42 Environment – New Objectives

• Develop long-term carbon reduction targets and roadmap up to 2050, covering • Rail operations and new rail development • Property management, investment property portfolio and new property developments

Carbon Reduction • Continue to serve as a low-carbon transportation mode to keep our cities moving sustainably

Page 43 Social

Safety first – customers, contractors and staff: • Reduced injuries requiring hospitalisation per 100 million passenger journeys by 20% on our heavy rail network in 2019 in HK compared to 2018 Customer Experience: • Provided babycare rooms at 7 interchange stations and new stations under TML phase 1 Inclusion in our services and employment: • Provided new washrooms with enhanced accessibility • Provided Internship opportunities for University Students with Disabilities / Special Education Needs Investing in communities and staff: • Continued to offer programmes and activities to support and engage communities under the “Community Connect” platform • Benefitted some 83,000 participants in our youth and children programmes in 2019

Page 44 Governance

Board Structure and Diversity: • Updated the Board Diversity Policy and refreshed the membership of our Board taking into account our Board skills matrix Enterprise Risk Management: • Identified and reviewed enterprise risks across all business units regularly and prioritised resources to manage emergent risks Stakeholder Engagement: • Dynamic and ongoing stakeholder engagement process welcomes and gathers diverse views, opinions and expectations from a wide range of stakeholders along our value chain Ethics & Integrity: • Organised education programmes including seminars and computer-based training for staff to explain Code of Conduct to ensure high standards of ethics and integrity in line with our values Best Practices: • Commitment to complying with revised HKEx ESG reporting standards

Page 45 Financial Results

Page 46 Financial Highlights

1H2020 Recurrent Businesses

Hong Kong (1) Outside of (HK$m) Total Hong Kong(1) Revenue 11,127 10,465 21,592 Change (YoY) (37.2%) (0.9%) (23.6%) Recurrent business profit(2) 291 142 433 Change (YoY) (89.1%) n/m (83.8%)

Change (YoY, excluding SCL/South Western Railway provisions in 1H2019) (93.8%) (67.7%) (91.5%)

(HK$m) 1H2020 Change (YoY) Recurrent business profit(2) 433 (83.8%) Post-tax profit from property development Hong Kong 5,171 589.5% Mainland of China 29 16.0% Sub-total 5,200 571.0% Underlying business profit(2) 5,633 63.8% Investment property revaluation (5,967) n/m Reported net profit attributable to shareholders of the company(2) (334) n/m Reported EPS (HK$)(2) (0.05) n/m Underlying businesses EPS (HK$)(2) 0.92 64.3% Interim dividend per share (HK$) 0.25 - n/m: not meaningful 1. Recurrent business profit from Hong Kong includes HK transport operations, HK station commercial, HK property rental and management, other businesses (mainly project management services to Government, Ngong Ping 360, and consultancy) and project studies and business development expenses. Recurrent business profit outside of Hong Kong includes business development expenses 2. Net of non-controlling interests (1H2020: HK$23m; 1H2019: HK$98m) Page 47 Consolidated Balance Sheet

Cash, bank balances and deposits Railway: 46% Property: 36% Debtors and other receivables

Service Investment Others Assets Railway assets concession properties assets

Property development in progress and Properties Held for Sale Total Equity: 63% Total Debt: 14% Deferred tax liabilities

Liabilities and Shareholders’ funds Debt Others Shareholders' funds

Obligations under Creditors and other service concession payables

0 50,000 100,000 150,000 200,000 250,000 300,000

Note: As at 30 Jun 2020 (HK$m) Page 48 Progressive Dividend Policy

(HKD) 2.6

2.4 Ordinary DPS Underlying EPS1&2 2.2 Recurrent EPS 1&2 2.0

1.8

1.6

1.4 1.20 1.23 1.2 1.12 1.05 1.06 1.07 1.0 0.92 0.79 0.8 0.76 0.59 0.6 0.52

0.4

0.2

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1. 2012 figures restated due to retrospective adoption of Revised HKAS19, Employee Benefits

2. 2019 figures are normalized exclude the provision in respect of SCL (HK$2B), SWR (HK$0.4B) and POE (HK$2.3B) Page 49 Appendix

Page 50 Hong Kong Transport Operations

Revenue Cost

(HK$m) (HK$m)

10,690 9,738 517 Depreciation & Variable annual 576 amortisation, 1,048 8,813 payment 1,126 variable annual 341 Depreciation & payment: 3,394 amortisation 2,346 2,685 1,716 2,344 General admin, 6,234 Others(2) Railway support & 979 others 107 298 Airport Express 804 658 260 256 Stores & spares 514 High Speed Rail 981 1,061 consumed Cross-boundary Operating Maintenance & related 891 811 6,755 Service cost: 6,344 6,128 Energy & utilities 4,657 (1) Domestic Service 3,233 3,196 Staff costs & related

1H2019 1H2020 1H2019 1H2020

EBITDA: Margin: EBIT loss(3)(4): Margin: 50.3% 97.6% 39.0% HK$106m 1.7% pts HK$2,579m -41.4% pts

1. Domestic Service comprises the Kwun Tong, Tsuen Wan, Island, South Island, Tung Chung, Tseung Kwan O, Disneyland Resort, East Rail (excluding Cross-boundary Service), West Rail and Tuen Ma Line (Phase 1) 2. Others comprise Light Rail, Bus, Intercity and other rail related income 3. After depreciation, amortisation and variable annual payment to KCRC 4. EBIT of HK$952 million in 1H2019 Page 51 Segment profit (HK$b)

17 16 Profit/ (loss) from property 15 development 14 13 Profit/ (loss) from businesses outside of HK 12 11 Profit/ (loss) from recurring businesses 10 (excluding property development) 9 Profit/ (loss) for the year (excluding 8 investment property revaluation) 7 6 5 4 3 2 1 0 (1) Opening of Opening of Merger with KCRC Airport Express TKO Line on 2 Dec 07

(2) Opening of Urban Lines

04 15 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 05 06 07 08 09 10 11 12 13 14 16 17 18 19*

* 2019 figures are normalized exclude the provision in respect of SCL (HK$2B), SWR (HK$0.4B) and POE (HK$2.3B) Page 52 Consolidated Profit and Loss Account

1H2020 1H2019 Favourable/ (adverse) change (HK$m) HK$m % HK transport operations 6,234 10,690 (4,456) (41.7) HK station commercial and HK property rental & management businesses 4,391 6,190 (1,799) (29.1) Mainland of China & international railway, property rental and management subsidiaries 10,465 10,558 (93) (0.9) Other businesses 502 834 (332) (39.8) Total revenue 21,592 28,272 (6,680) (23.6) Operating expenses excluding Mainland of China & international subsidiaries(1) (7,435) (9,975) 2,540 25.5 Expenses relating to Mainland of China & international railway, property rental and (10,156) (9,886) (270) (2.7) management subsidiaries(2) Expenses relating to Mainland of China property development (4) (10) 6 60.0 Total operating expenses (17,595) (19,871) 2,276 11.5 EBITDA excluding Mainland of China & international subsidiaries 3,692 7,739 (4,047) (52.3) EBITDA relating to Mainland of China & international railway, property rental and 309 672 (363) (54.0) management subsidiaries EBITDA relating to Mainland of China property development (4) (10) 6 60.0 Total EBITDA 3,997 8,401 (4,404) (52.4) HK property development profit 6,168 898 5,270 586.9 Total operating profit 10,165 9,299 866 9.3 Depreciation & amortisation (2,613) (2,592) (21) (0.8) Variable annual payment (457) (1,506) 1,049 69.7 Share of profit or loss of associates and joint venture 217 (74) 291 393.2 Interest and finance charges (499) (442) (57) (12.9) Investment property revaluation (5,967) 2,066 (8,033) n/m Profit before taxation 846 6,751 (5,905) (87.5) Income tax (1,157) (1,147) (10) (0.9) Non-controlling interests (23) (98) 75 76.5 Reported net (loss)/profit attributable to shareholders of the Company (334) 5,506 (5,840) n/m Reported (loss)/earnings per share (“EPS”) (HK$) (0.05) 0.90 (0.95) n/m Profit from underlying businesses 5,633 3,440 2,193 63.8 Underlying businesses EPS (HK$) 0.92 0.56 0.36 64.3 Interim ordinary dividend per share (HK$) 0.25 0.25 - - n/m: not meaningful Note 1: Includes project studies and business development expenses Note 2: Excludes project studies and business development expenses Page 53 Consolidated Statement of Financial Position

30 Jun 2020 31 Dec 2019 Increase/ (Decrease) (HK$m) HK$m % Assets Investment properties 89,017 91,712 (2,695) (2.9) Other property, plant and equipment 101,928 102,632 (704) (0.7) Service concession assets 31,269 31,261 8 - Property development in progress 11,990 12,022 (32) (0.3) Interests in associates & joint venture 10,418 10,359 59 0.6 Properties held for sale 2,035 1,245 790 63.5 Debtors and other receivables 13,998 11,169 2,829 25.3 Amounts due from related parties 3,998 3,041 957 31.5 Cash, bank balances and deposits 18,098 21,186 (3,088) (14.6) Others 4,864 4,587 277 6.0 Total Assets 287,615 289,214 (1,599) (0.6)

Liabilities Debts 41,620 39,456 2,164 5.5 Creditors, other payables and provisions 34,451 33,315 1,136 3.4 Current taxation 1,243 2,024 (781) (38.6) Amounts due to related parties 5,587 2,990 2,597 86.9 Obligations under service concession 10,311 10,350 (39) (0.4) Deferred tax liabilities 13,612 13,729 (117) (0.9) Others 770 552 218 39.5 Total Liabilities 107,594 102,416 5,178 5.1

Total Equity 180,021 186,798 (6,777) (3.6)

Page 54 Cash flow 1H2020 1H2019 Favourable/ (adverse) change (HK$m) HK$m % Cash Inflow Cash flows from operations 2,244 9,964 (7,720) (77.5) Receipt of government subsidy for Shenzhen Metro Longhua Line operation 587 608 (21) (3.5) Receipts from property developments 3,535 4,580 (1,045) (22.8) Others 161 (66) 227 n/m Total inflows 6,527 15,086 (8,559) (56.7)

Cash Outflow Tax paid (2,072) (522) (1,550) (296.9) Purchase of tax reserve certificates (57) (7) (50) (714.3) Capital expenditure and investments - Hong Kong existing rail (2,805) (2,614) (191) (7.3) - Hong Kong new rail (77) (175) 98 56.0 - Mainland of China and international businesses (139) (91) (48) (52.7) - Property related (3,497) (469) (3,028) (645.6) Variable annual payment (2,583) (2,305) (278) (12.1) Net distribution from / (Investment and loans in) associates & joint ventures 25 (802) 827 n/m Total outflows (11,205) (6,985) (4,220) (60.4) Net cash (outflow)/inflow before financing (4,678) 8,101 (12,779) n/m Cash inflow/(outflow) from net repayment 2,183 (3,955) 6,138 n/m Net interest paid (355) (448) 93 20.8 Others (33) (49) 16 32.7 # Net cash (outflow)/inflow (2,883) 3,649 (6,532) n/m

m/n: not meaningful # Excluding effect of exchange rate change

Page 55 Financing and Credit Ratios

Company Debt Profile (30 Jun 2020)(1) Consolidated group borrowings and other obligations(2):

HK$41,620m (HK$39,456m as at 31 Dec 2019) > 5 years Fixed 49% 63% Average cost of borrowing and other Hedged obligations(2): 2.6 100% % (-0.1%pt YoY) 2-5 years 28% Floating Interest and finance charges: <2 year 37% HK$499m (+12.9% YoY) 22%

Maturity Fixed/Floating Currency

30 Jun 2020 31 Dec 2019 Net Debt / Equity ratio(3) 18.9% 15.4%

1H2020 1H2019 Interest cover 14.2x 13.4x

1. Excluding Mainland of China and overseas subsidiaries debts 2. Excluding obligations under service concession 3. Including lease liabilities, obligations under service concession and loan from holders of non-controlling interests as components of debt

Page 56 Capital Expenditure & Investments

2020-2022 Hong Kong Maintenance CAPEX# 55% Total Estimated spend: HK$41.9B 27% 2020 - HK$14.9 billion Hong Kong 2021 - HK$12.6 billion Property 2022 - HK$14.4 billion 6% 12% Total - HK$41.9 billion

Mainland of China Hong Kong & Overseas New Railway Projects

# Includes the Maintenance CAPEX for the Existing Railway Assets and Advance Railway Works related to SCL The Advance Railway Works related to SCL involve modifications to or upgrades or expansion of assets for which MTR is responsible under the existing service concession agreement with KCRC. This will predominantly be covered by the reduction in future maintenance CAPEX during the construction period of SCL Project which MTR would have otherwise incurred. Page 57 SPA & Profitability Service Performance-Linked Arrangement* FD version (HK$m) Train service disruption including all Amount per incident delays and suspensions for Heavy subject to a maximum 2017/18 onward – in form of “3% Rebate of Rail and Light Rail attributable to of $25 million per Each Octopus Trip” equipment fault or human error incident (HK$m) ➔ $86.5m will be given based on 2019 Equal to or more than 31 minutes but $1 operational performance less than or equal to one hour ➔ $20.0m will be given based on 2018 More than one hour but less than or $2 equal to two hours operational performance More than two hours but less than or $3 equal to three hours More than three hours but less than $5 or equal to four hours Each additional hour (or part thereof) $2.5 exceeding four hours Profitability-Linked Arrangement Underlying Business Profit in (HK$m) Preceding Year (HK$) 2017/18 onward – in form of “3% Rebate of Below $5 billion 0 Each Octopus Trip” $5 billion to <$6 billion $75 $6 billion to <$7 billion $100 ➔ 2019 underlying profit was $10.6b, fare $7 billion to <$8 billion $125 concession will be $200m $8 billion to <$9 billion $150 ➔ 2018 underlying profit was $11.3b, fare $9 billion to <$10 billion $175 concession will be $225m $10 billion to <$11 billion $200 $11 billion to <$12 billion $225 $12 billion to <$13 billion $250 $13 billion to <$14 billion $275 $14 billion to <$15 billion $300 >=$15 billion $325

Page 58 Revenue Breakdown on MTR Malls and IFC FD version 2019 2018 2019 Acc. Weighting Weighting vs Own LFA HK$m Weighting HK$m (%) (%) 2018 (%) (sqm) (%) Elements 81 45,578 1,279 26.5% 26.5% 1,245 25.8% 2.7% Top 5 malls / Telford Plaza (Phase I / II) 100/50 39,305/21,454 904 18.7% 45.2% 924 19.1% -2.2% IFC IFC (Office/Carpark) 100 /51 39,410 729 15.1% 60.3% 686 14.2% 6.3% constitute close to 80% Maritime Square I & II 100 29,455/6,448 638 13.2% 73.5% 617 12.8% 3.4% Luk Yeung Galleria 100 11,094 201 4.2% 77.6% 204 4.2% -1.5% PopCorn 1 & 2 50/70 12,173/8,456 201 4.2% 81.8% 203 4.2% -1.0% Citylink Plaza 100 12,154 174 3.6% 85.4% 183 3.8% -4.9% Mainland Tourist Paradise Mall 100 19,110 172 3.6% 88.9% 167 3.5% 3.0% Ocean Walk 100 6,083 81 1.7% 90.6% 80 1.7% 1.3% The Lane 100 2,629 77 1.6% 92.2% 79 1.6% -2.5% Plaza Ascot 100 7,720 72 1.5% 93.7% 70 1.4% 2.9% Sun Tuen Mun Shopping Centre 100 9,022 42 0.9% 94.6% 42 0.9% 0.0% Hanford Plaza 100 1,924 16 0.3% 94.9% 16 0.3% 0.0% Misc. Properties/Income* n/a 29,798 247 5.1% 100.0% 232 4.8% 6.5% Total 301,813 4,833 100.0% 4,748 1.8%

- Resilience in community / * Including: New Kwai Fong Garden (kindergarten), Shop units on , Admiralty Centre (shops), Olympic City (sports hall & residential IPs shop), Elements (coach terminus), The Capitol (shop units & elderly home), Le Prestige (kindergarten), The Riverpark (shops & kindergarten), Hemera (kindergarten), car/motorcycle park spaces and other income generating IPs at various locations - IPs with exposure to luxury and Mainland tourist Note: LOHAS Park Shopping Mall: 44,500sqm (target completion in 2H2020), Tai Wai shopping mall: 60,620sqm (target completion in moderated 2023) and Wong Chuk Hang Shopping Mall (target completion in 2023) - HSR opened in Sep 2018

Page 59 MTR Corporation www..com.hk [email protected]

Page 60