Presentation 2016 Results

3rd March 2017 2016 Review

• Underlying profit down 6%

• Continued strong contribution from commercial portfolio

• Steady residential contribution from mainland China and Singapore

• Net assets per share up 9% on higher capital values

1 2016 Results 2016 Results Highlights

2015 2016

US$905m Underlying profit attributable to shareholders US$848m

US$1,107m Non-trading items US$2,498m

US$2,012m Profit attributable to shareholders US$3,346m

US¢38.44 Underlying earnings per share US¢36.03

US¢85.50 Earnings per share US¢142.23

US$12.19 NAV per share US$13.30

US¢13.00 Final dividend per share US¢13.00

US¢19.00 Total dividend per share US¢19.00

2 2016 Results Commercial Property

3 2016 Results Commercial Portfolio (’000 sq. ft NFA)

HKL’s Share Office Retail Hotel Total 4,139 572 143 4,854 Macau - 93 151 244 Singapore 1,652 129 - 1,781 Jakarta 664 64 - 728 Hanoi 106 11 - 117 Bangkok 27 61 - 88 Others 71 - 312 383 TOTAL 6,659 930 606 8,195

4 2016 Results Hong Kong

1. One Exchange Square 2. Two Exchange Square 3. Three Exchange Square 4. The Forum

9 5. 8 1 2 9a 11 6. 10 3 7 5 7. 6

8. Gloucester Tower 4 12 9. Edinburgh Tower 9a. Mandarin Oriental 10. York House 11. Landmark Atrium 12. Prince’s Building

5 2016 Results Hong Kong Central Grade “A” Office Rental Index

Index 180

160

140

120

100

80 2012 2013 2014 2015 2016 Source: Jones Lang LaSalle

6 2016 Results Hong Kong Central Grade “A” Office Market

m sq. ft Vacancy % New supply Net take up Vacancy 2.5 15

2 12

1.5 9

1 6

0.5 3

0 0

-0.5 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.

7 2016 Results Hong Kong Grade “A” Office Market

m sq. ft Vacancy % New supply Net take up Vacancy 10 15

8 12

6 9

4 6

2 3

0 0

-2 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.

8 2016 Results Central Portfolio: Office

2014 2015 2016

Average Net Rent (HK$ psf/month) 102 101 103

Year-end Vacancy 5.4% 3.4% 2.2%

Weighted Average Lease Expiry (years) 3.4 4.1 3.8

9 2016 Results Hong Kong: Office Tenant Profile

Others 14% Banks and Property other financial 6% services Trading 39% 2% Governments 1% Accounting 8%

Legal 30%

10 2016 Results Hong Kong: Expiration and Interim Rent Revisions

2017 2018 2019

Total lettable office area subject to 1,322 1,330 1,020 expiration/rent revisions (’000 sq. ft) % of area subject to expiration/rent revisions 32% 32% 25%

- Expiration 11% 19% 20%

- Rent revisions 21% 13% 5%

Average expiring net rent (HK$ psf/month) 101.7 103.2 112.8

11 2016 Results Hongkong Land Central Portfolio: Retail

2014 2015 2016

Average Net Rent (HK$ psf/month) 214 221 218

Year-end Vacancy 0% 0% 0%

Weighted Average Lease Expiry (years) 2.8 2.4 2.8

Note: Vacancy excludes areas under renovation.

12 2016 Results Singapore

One Raffles Link One Raffles Quay Marina Bay Financial Centre (100%-owned) (33%-owned) (33%-owned)

13 2016 Results Singapore CBD Grade “A” Office Market

m sq. ft New supply Net take up Vacancy Vacancy % 5 15

4 12

3 9

2 6

1 3

0 0

-1 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

CBD – Raffles Place, Shenton Way, Marina Bay & Marina Centre Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.

14 2016 Results Singapore Commercial Portfolio (’000 sq. ft NFA)

Office Retail Total HKL’s Share

One Raffles Link 243 68 311 311

One Raffles Quay 1,327 4 1,331 444

Marina Bay Financial Centre 2,900 179 3,079 1,026

TOTAL 4,470 251 4,721 1,781

15 2016 Results Singapore: Office Tenant Profile

Others Natural 11% resources 7% Accounting 3%

Legal 6%

Banks and other financial services 73%

16 2016 Results Singapore: Office Average Rents and Vacancy

2014 2015 2016

Average Gross Rent (S$ psf/month) 9.2 9.5 9.3

Year-end Vacancy 1.7% 3.0% 0.1%

Weighted Average Lease Expiry (years) 5.5 5.1 4.8

Note: According to local market practice, the average office rent includes management charges.

17 2016 Results Singapore: Expiration and Interim Rent Revisions

2017 2018 2019

HKL’s Share: Total lettable office area subject 130 719 320 to expiration/rent revisions (’000 sq. ft) % of area subject to expiration/rent revisions 7.8% 43.5% 19.3%

- Expiration 4.4% 5.8% 12.0%

- Rent revisions 3.4% 37.7% 7.3%

Average expiring rent (S$ psf/month) 8.9 9.0 9.8

Note: According to local market practice, the average office rent includes management charges.

18 2016 Results Jakarta

Jakarta Land (50%-owned)

• Existing portfolio features 135,000 sq. m. NFA WTC 3

• Average gross rent: US$25.3 psm per month (2015: US$25.3 psm per month)

• Occupancy: 90%

• WTC 3: Construction has progressed to Level 39 (Completion: 2018)

19 2016 Results Phnom Penh

EXCHANGE SQUARE (100%-owned)

• Mixed-use complex with 30,000 sq. m. NFA

• Heart of Phnom Penh

• Tenant handover commenced: December 2016

20 2016 Results Beijing

WF CENTRAL (84%-owned)

• Prestigious retail centre, which includes an exclusive luxury hotel

• 43,000 sq. m. NFA

• Open: Q4 2017

21 2016 Results Residential Property

22 2016 Results Mainland China – Completed Projects, Beijing

Maple Place Project Project Type

• 31 units handed over in 2016 Maple Place (90%) • 2 units available for future sale

Central Park (40%) • 72 apartments

23 2016 Results Mainland China – Development Projects Summary

HKL’s Share

Developable Under Year of Site Area Constructed Project Interest Area Construction Acquisition (ha) (m sq. m.) (m sq. m.) (m sq. m.)

Yorkville South, Chongqing 100% 2010 39 0.88 0.51 0.16

Yorkville North, Chongqing 100% 2011 54 1.09 0.34 0.07

Bamboo Grove, Chongqing 50% 2005 39 0.73 0.64 0.09

New Bamboo Grove, Chongqing 50% 2015 17 0.32 - 0.18

Landmark Riverside, Chongqing 50% 2009 11 0.50 0.15 0.15

Central Avenue, Chongqing 50% 2013 20 0.55 0.03 0.15

WE City, Chengdu 50% 2010 10 0.45 0.15 0.09

Parkville, Shanghai 50% 2015 4 0.11 - 0.11

TOTAL 194 4.63 1.82 1.00

24 2016 Results Mainland China – Revenue Recognised

US$m Chongqing Chengdu Beijing

800 $676m $621m 600 $505m

400

200

0 2014 2015 2016

Note: The above chart includes HKL’s share of Joint Ventures & Associates.

25 2016 Results Mainland China – Contracted Sales

US$m Chongqing Chengdu Shanghai Beijing

1,200 $1,105m 1,000 $802m 800 $635m 600

400

200

0 2014 2015 2016

Note: The above chart includes HKL’s share of Joint Ventures & Associates.

26 2016 Results Mainland China – Sold but Unrecognised Sales

US$m Sales to be recognised next year Sales to be recognised after next year 1,200 $1,083m 1,000 $821m 800

600 $533m

400

200

0 2014 2015 2016

Note: The above chart includes HKL’s share of Joint Ventures & Associates.

27 2016 Results Singapore

Sol Acres

LakeVille

J Gateway Lake Grande

Margaret Drive

28 2016 Results Singapore – Projects for Completion from 2017

GFA Estimated Project Units Pre-Sold (’000 sq. ft) Completion Date

LakeVille 699 674 2017 99%

Sol Acres 1,327 1,240 2018 44%

Lake Grande 710 537 2019 77%

Not yet Margaret Drive 316 238 2020 launched

TOTAL 3,052 2,689

29 2016 Results Indonesia

Nava Park, Greater Jakarta (49%-owned) Estimated No. of Pre-Sold GFA % of Units Completion Units % of Units (’000 sq. m.) Construction Date Launched Launched

Under development Villas and Landed Housing - Lancewood 223 61 2017 96% 223 88% - Lakewood 130 46 2018 2% 45 36% Mid-rise Apartments - Marigold 589 56 2020 18% 203 84% Sub-total 942 162 Undeveloped 640 2029 Total 802

30 2016 Results Indonesia

Anandamaya Residences (40%-owned)

• JV with

• Site area: 1.6 ha

• GFA: 116,000 sq. m.

• 509 luxury apartments; 92% pre-sold

• Completion: 2018

31 2016 Results Indonesia

Jakarta Garden City (25%-owned)

• 50:50 JV between Modernland and Astra Land, of which HKL holds 50%

• Site area: 69 ha

• GFA: 940,000 sq. m. Jakarta Garden City • East of central Jakarta

• Construction start: 2017 Background image from Google Earth

32 2016 Results Philippines

Two Roxas Triangle (40%-owned)

• JV with Ayala Land

• Site area: 0.5 ha

• GFA: 98,000 sq. m.

• 182 units; 99% pre-sold

• Completion: 2018

33 2016 Results Philippines

Mandani Bay (40%-owned)

• JV with Taft Property

• Site area: 20 ha

• GFA: 1.2 million sq. m.

• Residential and commercial

• Phase One: 1,226 units, 43% pre-sold

• Completion: 2035

34 2016 Results Thailand

S36, Bangkok (49%-owned)

• JV with Singha Estate

• Site area: 0.4 ha

• GFA: 38,000 sq. m.

• High-rise luxury condominium

• 374 units

• Construction start: Early 2018

35 2016 Results Financial Results

36 2016 Results Consolidated Profit and Loss Account (US$m)

2015 2016 1,932 Revenue 1,994 (938) Net operating costs (1,023) 994 Operating profit 971 141 Share of results of joint ventures 117 (74) Net financing charges (69) (151) Tax (168) (5) Non-controlling interests (3) 905 Underlying profit 848 1,107 Non-trading items 2,498 2,012 Profit attributable to shareholders 3,346

37 2016 Results Revenue (US$m)

2015 2016 973 Commercial revenue 986 959 Residential revenue 1,008 1,932 Total 1,994

38 2016 Results Underlying Profit by Business (US$m)

2015 2016 940 Commercial property 946 354 Residential property 293 (60) Corporate expenses (62) 1,234 1,177 (107) Net financing charges (102) (209) Tax (214) (13) Non-controlling interests (13) 905 Underlying profit 848

39 2016 Results Commercial Property Underlying Profit (US$m)

2015 2016 Greater China 784 - Hong Kong 794 16 - Mainland China & Macau 11 Southeast Asia & Others 118 - Singapore 120 22 - Others 21 940 Total 946

40 2016 Results Residential Property Underlying Profit (US$m)

2015 2016 Greater China 57 - Hong Kong - 171 - Mainland China & Macau 170 Southeast Asia & Others 127 - Singapore 120 (1) - Others 3 354 Total 293

41 2016 Results Consolidated Cash Flow (US$m)

2015 2016 896 Operating activities 1,096 (146) Investing activities (245) (796) Financing activities (442) (46) Net cash inflow/(outflow) 409 1,659 Cash and cash equivalents at beginning of year 1,566 (47) Effect of exchange rate changes (77) 1,566 Cash and cash equivalents at end of year 1,898 (3,906) Gross debt (excluding bank overdrafts) (3,906) (2,341) Net debt at end of year (2,008)

42 2016 Results Operating Activities (US$m)

2015 2016 994 Operating profit excluding non-trading items 971 (78) Net interest paid (75) (175) Tax paid (141) (281) Payments for residential sites (79) (407) Development expenditure on residential projects (336) 1,079 Proceeds from residential sales 953 117 Dividends received from joint ventures 88 (353) Others (285) 896 1,096

43 2016 Results Investing Activities (US$m)

2015 2016 (58) Major renovations capex (92) (256) Funding of joint ventures (104) 391 Advances and loan repayments from joint ventures 103 (152) Development expenditure (148) (71) Payment of deposit for a joint venture (4) (146) (245)

44 2016 Results Financing Activities (US$m)

2015 2016 (445) Dividends paid by the Company (444) (4) Dividends paid to minority shareholders (4) (347) Net drawdown/(repayment) of borrowings 26 - Change in interests in subsidiaries (20) (796) (442)

45 2016 Results Consolidated Balance Sheet (US$m)

2015 2016 Investment properties 24,957 - Subsidiaries 27,712 4,296 - Joint ventures 4,180 29,253 31,892 Properties held for sale 2,714 - Subsidiaries 2,218 1,771 - Joint ventures 1,835 4,485 4,053 (2,677) Others (2,623) 31,061 Gross assets (excluding cash) 33,322 Financed by: 28,720 - Total equity 31,314 2,341 - Net debt 2,008 31,061 33,322

46 2016 Results Investment Property – Basis of Valuation

Capitalisation Rates 2015 1H 2016 2016

Hong Kong Office - Exchange Square 1 & 2 3.75% 3.60% 3.50%

Hong Kong Retail - Landmark Atrium 4.50% 4.50% 4.50%

Singapore Office - MBFC 3.75% 3.50% 3.50%

Note: These capitalisation rates are provided on an indicative basis.

47 2016 Results Investment Property – Carrying Values (US$m)

2015 2016 Greater China 23,671 - Hong Kong 26,381 1,532 - Mainland China & Macau 1,513 Southeast Asia & Others 3,428 - Singapore 3,351 622 - Others 647 29,253 Total 31,892

Note: The analysis includes share of Joint Ventures & Associates.

48 2016 Results Properties Held for Sale – Carrying Values (US$m)

2015 2016 Greater China 18 - Hong Kong 18 2,766 - Mainland China & Macau 2,570 Southeast Asia & Others 1,528 - Singapore 1,250 173 - Others 215 4,485 4,053 (1,187) Pre-sale proceeds (1,637) 3,298 Net investment 2,416

Note: The analysis includes share of Joint Ventures & Associates.

49 2016 Results Gross Assets at 31st Dec 2016

By Activity By Location

Hong Kong 78% Commercial 91% Mainland China and Macau 9% Residential 9% Southeast Asia 13%

50 2016 Results Treasury Management

Summary 2015 2016

Net debt (US$m) 2,341 2,008

Gearing 8% 6%

Average tenor of debt (years) 7.2 6.4

Average interest cost 3.3% 3.4%

Credit ratings - S & P A A - Moody’s A3 A3

51 2016 Results Maturity Profile of Committed Facilities/Bonds (US$m)

US$m Bank Facilities (Drawn & Undrawn) Bonds* 3,500 3,000 $2,836m 2,500 2,000 1,500 $1,086m 1,000 $882m $663m $756m 500 $294m 0 2017 2018 2019 2020 2021 2022+

* Includes bonds and notes issued under MTN Programme which are at face value.

52 2016 Results Liquidity at 31st Dec 2016 (All figures in US$bn)

2015 HK$1 S$2 US$ RMB Total

6.4 Committed lines 4.7 1.4 - 0.4 6.5

3.9 Gross debt 3.3 0.4 - 0.2 3.9

2.5 Available lines 1.4 1.0 - 0.2 2.6

1.6 Cash - 0.2 0.7 1.0 1.9

4.1 Available liquidity 1.4 1.2 0.7 1.2 4.5

Notes: (1) HK$ debt includes US$ debt swapped into HK$. (2) S$ debt includes HK$ debt swapped into S$.

53 2016 Results Outlook

• Stable performance from commercial property portfolio

• Higher contribution in our residential business from mainland China, offset by lower profits from Singapore

• Continue to seek expansion opportunities in mainland China and Southeast Asia

54 2016 Results Thank you

Hongkong Land www.hkland.com