October 2020

2020 THIRD QUARTER RESULTS REVIEW

2020 Third Quarter Results Review ~ Stock Code: 0270

OUR BUSINESS

Guangdong Investment Limited

Water Resources Property Investment and Hotel Operations Infrastructures Development & Department Stores

2020 Third Quarter Results Review ~ 2 FINANCIAL PERFORMANCE SUMMARY

(HK$ mm) 20000

15000

10000 Revenue 16,094 Profit 11,345 5000 9,095 9,951 6,998 8,071 3,886 3,135 3,414 4,969 4,227 4,143 0 9M15 9M16 9M17 9M18 9M19 9M20

Revenue (HK$ mm) Profit (HK$ mm) Dividend (HK$ cents) 9M19: 11,345 +41.9% 9M19: 4,143 -6.2% 1H19: 17.30 +2.0% 9M20: 16,094 9M20: 3,886 1H20: 17.64

2020 Third Quarter Results Review ~ 3 1 H 2 0 REVENUE PERFORMANCE BY SEGMENT

+HK$1584 mm

+HK$1231 mm

Property & Water 1H19: HK$331 mm 1H19: HK$1,078 mm

Department Stores Resources 1H20: HK$102 mm 1H20: HK$840 mm

1H19: HK$1,617 mm 1H19: HK$4,382 mm 1H20: HK$3,201 mm 1H20: HK$5,613 mm Hotel Operations Infrastructures & Management

-HK$229 mm -HK$238 mm

2020 Third Quarter Results Review ~ 4 1 H 2 0 SEGMENT RESULTS

Operating Profit (excluding interest income, investment income & finance costs)

66% 28% 6%

Water Resources Property Investment and Infrastructures Development & Department Stores

2020 Third Quarter Results Review ~ 5 DIVIDEND GROWTH TREND

2010-2019 dividend CAGR of 15.7% (HK$ cents) 70 80% 74.9% 60 62.5% 69.7% 70% 54.4% 60% 50 55.1% Dividend 50% 40 36.5% 39.7% 37.3% 32.4% 40% Dividend 30 53.5 57.8 Growth Rate 23.5% 48.5 30% 20 20.0% 42.0 34.0 15.5% 20% Payout Ratio 28.0 21.4% 10.3% 23.0 21.7% 8.0% 10 18.0 20.0 10% 11.1% 15.0% 0 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019

2020 Third Quarter Results Review ~ 6 FINANCIAL POSITION

Jun 2020 (HK$ mm) Dec 2019 (HK$ mm) Total Assets 78,937 76,424

Included: Property, plant and equipment 6,839 6,848

Investment properties 17,851 18,178

Operating concession rights & receivables under service concession arrangements 19,755 18,454

Total Cash and bank balances (including restricted and pledged) 14,754 13,344 Total Liabilities and Non-controlling Interests 38,781 35,268

Included: bank and other borrowings 9,215 8,137

Non-interest bearing receipt in advance 355 355

Non-controlling interests 9,792 9,536 Equity attributable to Owners of the Company 40,156 41,156

2020 Third Quarter Results Review ~ 7 WATER SUPPLY ARRANGEMENT

Existing Arrangement

2018 – 2020

Volume/Tariff Flexible supply volume based on actual needs

2018: HK$4.79 bn Annual revenue 2019: HK$4.81 bn 2020: HK$4.82 bn

2020 Third Quarter Results Review ~ 8 HK WATER SUPPLY REVENUE TREND

(HK$ bn) 5.0 4.5 4.0 3.5 3.0 2.5 4.8 4.8 4.8 4.8 4.2 4.5 2.0 3.7 4.0 3.3 3.5 1.5 3.0 3.1 2.5 2.5 2.5 2.5 1.0 0.5 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note*: Subsidy amounted to RMB 652 mm finalized by Provincial Government for the period from 2005 to 2008. The subsidy was paid by instalments over four year starting from 2008

2020 Third Quarter Results Review ~ 9 DONGJIANG (EAST RIVER) WATER SUPPLY CONCESSION

 30-year concession started in 2000 to supply fresh water to Hong Kong, and  Designed annual capacity of 2.4 billion tons  Revenue and profit before tax excluding net exchange differences and net interest income for 9M20 amounted to HK$4,963 mm (9M19: HK$4,948 mm) and HK$3,334 mm (9M19: HK$3,292 mm) (billion tons) Water Distribution Volume 2.0

1.5

1.0

0.5

0.0 9M15 9M16 9M17 9M18 9M19 9M20

2020 Third Quarter Results Review ~ 10 WATER GROUP HK PROJECTS

Jiangsu Designed Capacity Anhui Gansu Raw Water Supply 2.0 mtpd Jiangxi

Hubei Water Supply 7.9 mtpd Zhejiang Sewage Treatment 1.7 mtpd # of Projects in Operation 38 # of Projects under Construction 19

Guangxi # of Projects not yet begin construction 2

Hainan Guangdong

2020 Third Quarter Results Review ~ 11 WATER GROUP HK PROJECTS

 Water Group HK: revenue and profit before tax excluding net exchange differences and net finance costs for 9M20 amounted to HK$3,425 mm (9M19: HK$2,083 mm) and HK$624 mm (9M19: HK$434 mm) Operational Project Water Supply (tpd) Sewage Treatment (tpd) Project Water Supply (tpd) Sewage Treatment (tpd) Wuhua（五华） – 40,000 Baoying（宝应） 130,000 – Jinsheng（金胜） – 70,000 Gaoyou（高邮） 100,000 – Daojiao（道滘） – 40,000 Jianghe（江河） 600,000 – （梅州） 310,000 200,000 Yizheng（仪征） 150,000 – （开平） – 50,000 SW（梧州） 355,000 – （儋州） 100,000 – （肇庆） 120,000 – Nansha（南沙） 400,000 – Qingxi（清溪） 290,000 – Suixi（遂溪） 70,000 – Xingning（兴宁） – 3,000 Hainan Danzhou（儋州） 50,000 20,000 Xuyi（盱眙） 150,000 – Fengshun（丰顺） 73,500 – （汕头） 920,000 – Kaiping Sewage（开平） – 25,000 Wuhua QY（五华） – 15,000 （汕尾） – 30,000 （高州） 100,000 – Haihui（海汇） 680,000 81,000 （六盘水） – 115,000 （云浮） 50,000 – Wuhua LY（五华） – 11,000

2020 Third Quarter Results Review ~ 12 WATER GROUP HK PROJECTS (Cont’d)

Operational (Cont’d) Project Water Supply (tpd) Sewage Treatment (tpd) Project Water Supply (tpd) Sewage Treatment (tpd) （昆明） – 15,000 Dapu（大埔） – 10,300 LY（韶关） – 10,000 Wuzhou HB（梧州） – 140,000 Yangshan（阳山） – 6,100 Yunfu SW（云浮） 105,000 – Yunfu QY（云浮） – 15,000 Yunan（郁南） – 20,000 Yunfu HB（云浮） – 60,000 Yunfu YY（云浮） – 10,000 Total 4,753,500 986,400

2020 Third Quarter Results Review ~ 13 WATER PROJECTS UNDER CONSTRUCTION

 Successfully acquired new water resources projects in Fengshun, Huilai, Shanwei and Yunfu in Guangdong province, and Wujin in Jiangsu Province, with total designed water supply capacity and total designed waste water processing capacity of 751,000 tons and 373,500 tons per day respectively. Expected total investment amount of these projects is RMB3.9 billion  Contracted 2 new water resources projects in and Nansha of Guangdong Province, with total designed water supply capacity of 995,000 tons per day. Expected total investment amount of these projects is RMB2.5 billion Project Water Supply (tpd) Sewage Treatment (tpd) Project Water Supply (tpd) Sewage Treatment (tpd) Huilai QY（惠来） – 13,500 Enshi（恩施） 400,000 – Fengshun（丰顺） 50,000 – Haihui（海汇） 50,000 – Dapu（大埔） – 11,200 Wuchuan（吴川） – 25,000 Meizhou （梅州） – 50,000 Shaoguan（韶关） – 18,500 Yangshan（阳山） – 500 （阳江） – 20,000 Hedi（鹤地） 1,060,000 – Gaoyou（高邮） 50,000 – Lipu（荔浦） 80,000 – Pizhou（邳州） 250,000 – Xinghua（兴化） 430,000 – （潮州） – 20,000 Kunming（昆明） 34,000 10,000 Huilai LY（惠来） – 20,000 Hainan Danzhou（儋州） 50,000 – Total 2,454,000 188,700

2020 Third Quarter Results Review ~ 14 CAPACITIY GROWTH TREND

Capacity Growth Trend by Type (‘000 tpd) 7,000 4514 4753 6,000 3694 3794 5,000 Urban 4,000 2440 Water 2170 Supply 3,000 Waste 2,000 Water 1,000 540 Treatment 200 200 735 986 NA0 NA 280 390 393 433 463 2012 2013 2014 2015 2016 2017 2018 2019 2020

2020 Third Quarter Results Review ~ 15 PROPERTY INVESTMENT & DEVELOPMENT

Projects in Operation and Under Development

Project Location GFA (sq.m.) Project Type Status

GDH Teem Shopping mall 160k / office 102k Shopping mall / office / hotel In operation

Tianjin Teem For lease 145k Shopping mall Commenced operation in Jun 2017

Shopping mall / commercial 99k sq.m. contracts signed by Sept Panyu Wanbo CBD Panyu CBD, Guangzhou For sale 152k / for lease 104k apartments 2020, 91k sq.m delivered

GDI Tower Sheung Wan, Hong Kong 14k Office / shop In operation

2020 Third Quarter Results Review ~ 16 PROPERTY DEVELOPMENT

Guangdong Land Development Projects Completed properties held for sale Accumulated GFA Accumulated GFA Project Location Project Type GFA (sq.m.) contracted (sq.m.) delivered (sq.m .) % of GFA delivered

GDH City Plot Shenzhen Commercial apartments / 114.7k 26.4k 21.1k 18.4% Commercial Laurel House Guangzhou Residential 65.6k 55.9k 48.2k 73.4% Baohuaxuan Guangzhou Residential 3.9k 3.9k 3.7k 94.8% Ruyingju Guangzhou Residential 94.6k 94.5k 94.4k 99.8% Ruyingju Guangzhou Car park 8.1k 3.9k 3.9k 47.9% Properties under development Exp. completion and Project Location Project Type Site Area (sq.m.) GFA (sq.m.) Progress filing date GDH City Northern Plot Shenzhen Commercial / Offices 33.8k 146.6k Main structure work in progress 2H 2022

GDH City Shenzhen Offices / Mall 16.0k 199.5k Basement structural work in 2023 Southern Plot progress

Chenyuan Road Residential / Commercial 59.7k 164.2k Basement structural work in 2H 2022 Services progress

Jinwan Residential / Commercial 66.1k 166.7k Piling works in progress 2024

2020 Third Quarter Results Review ~ 17 PROPERTY INVESTMENT & DEVELOPMENT

Teem Plaza Performance Trend Other Property Projects  Teem Plaza HK$ mm — Teem Mall: average occupancy rate of 99.9% 1000 893 908 898 900 864 833 — Office building: average occupancy rate of 95.7% 800 769  Tianjin Teem Shopping Mall 700 — Average occupancy rate of 89.8% 600 — Revenue and profit before tax excluding changes in fair value of investment properties and net finance costs for 9M20 amounted to 500 HK$120.4 mm (9M19: HK$140.0 mm) and HK$53.5 mm (9M19: 400 HK$45.8 mm) 300 626 614 621 571 609 529  GD Land 200 — Revenue and profit before tax excluding changes in fair value of 100 investment properties and net finance costs for 9M20 amounted to 0 HK$3.4 bn (9M19: HK$765.1 mm) and HK$651.1 mm(9M19: HK$19.3 mm) 9M15 9M16 9M17 9M18 9M19 9M20  Guangdong Investment Tower * ** Revenue Profit before Tax — Revenue for 9M20 was HK$42.8 mm (9M19: HK$43.4 mm)

* Including rentals from department stores run by the Group. ** Excluding changes in fair value of investment properties and net interest income.

2020 Third Quarter Results Review ~ 18 DEPARTMENT STORE

Department Store Performance Trend

HK$ mm ‘000 m2 700 641 200 180 600 548 571 527 534 160 Revenue 500 140 400 375 120 100 Profit 300 80 before Tax 200 60 295 40 100 207 204 210 202 95 20 Leased Area 0 0 9M15 9M16 9M17 9M18 9M19 9M20

2020 Third Quarter Results Review ~ 19 HOTEL OWNERSHIP, OPERATION & MANAGEMENT

 Average room rate of Sheraton Guangzhou Hotel was HK$832 (9M19: HK$1,210), average room rate of the other 4 star-rated hotels was HK$362 (9M19: HK$673)  Average occupancy rate of Sheraton Guangzhou Hotel was 57.8% (9M19: 93.4%) and that of the other 4 star-rated hotels was 29.1% (9M19: 75.2%) Total hotels owned as at end of 9M20: 5 hotels HK$ mm 600 502 507 478 500 461 474 Revenue 400 300 202 200 Profit / (loss) 100 81 75 107 119 97 before Tax * 0 (62) -100 9M15 9M16 9M17 9M18 9M19 9M20 * 2020, 2019, 2018, 2017 and 2016 numbers exclude changes in fair value of investment properties and net exchange differences.

2020 Third Quarter Results Review ~ 20 POWER GENERATION – Z H O N G S H A N E N E R G Y PROJECT

Revenue Trend (HK$ mm) 1400 1,199 1200 1,114 1,062 1000 930 Revenue

800 706 Profit before 600 Tax *

400 293 255 218 205 200 117 131 148

0 9M15 9M16 9M17 9M18 9M19 9M20

* 2020, 2019, 2018, 2017 and 2016 numbers exclude net exchange differences and net finance costs.

2020 Third Quarter Results Review ~ 21 POWER GENERATION – YUDEAN JINGHAI POWER *

Revenue Trend (HK$ mm) 6000 5,009 5000 4,519 3,990 3,853 3,968 Revenue 4000 3,558 Profit before 3000 Tax 2000 1,244 735 650 1000 426 252 163 0 9M15 9M16 9M17 9M18 9M19 9M20

*The Company’s effective interest in Jinghai Power is 25%.

2020 Third Quarter Results Review ~ 22 T O L L R O A D

 Xingliu Expressway: average daily toll traffic flow for 9M20 was 16,840 vehicle trips (9M19: 25,426 vehicle trips) Xingliu Expressway Overview (HK$ mm)  Oct 2015: acquired Xingliu Expressway for an aggregate amount of HK$2,588 mm 700  Part of the G80 Guangzhou-Kunming Expressway that connects 600 563 577 Yunnan, and Guangdong Provinces 508  Commenced operation in August 2003 with five toll stations 464 500  The main line is 99.6km in length 400 357 372 362  Three branch line with aggregate length of 52.7km 309 279  Operation right of the Xingliu Expressway will expire in 300 September 2032 200 165  In accordance with the policy issued by the Ministry of Transport on 15 February 2020, no toll fees was collected from 100 vehicles from 17 February 2020 to 5 May 2020 0  On 10 July 2020, government authorities in Guangxi Province 9M16 9M17 9M18 9M19 9M20 announced that the accumulated 79 days toll-free period will be added to the existing operating concession period Revenue Profit before Tax * * 2020, 2019 and 2018 numbers exclude the net finance costs.

2020 Third Quarter Results Review ~ 23 PPP PROJECT

 June 2016: GDI announced it has entered into the Cooperation Agreement with Government in respect of the Dongguan Yingping public roads PPP project . Budgeted development costs of the PPP project is expected to be within RMB4.754 billion  As at September 30, 2020, one Project Road was completed (2019: Nil), three Project Roads (2019: three) were under construction; accrued interest income and management fee from the Yinping PPP project for 9M20 amounted to HK$71.3 mm (9M19: HK$28.0 mm) and profit before tax during the Period amounted to HK$63.4 mm (9M19: HK$19.0 mm) Announced Public-Private-Partnership Project

Investment Rationale  Aligning with national policy to promote PPP  Stable and long term financial return ─ Long term investment which delivers steady, low-risk returns for 10+ years ─ Cap on development costs ensures project is NOT subject to cost overrun risk ─ No construction risk as construction work will be completed by contractors

Project Return  Project interest return: 8% of outstanding amount  Management Fee: 2.5% of development costs  Maintenance Fee: 1.1% of development costs per annum for the maintenance period of 10 years

2020 Third Quarter Results Review ~ 24 FINANCIAL SUMMARY

1H20 (HK$ mm) 1H19 (HK$ mm) Y/Y% REVENUE 9,486 7,165 +32.4%

Gross Profit 4,648 4,253 +9.3%

Changes in fair value of investment properties (306) 194 -257.2%

Selling and distribution expenses (199) (176) +13.0%

Administrative expenses (708) (786) -9.8%

Exchange differences, net 51 54 -4.9%

PROFIT BEFORE TAX 3,806 3,876 -1.8%

Income tax expense (1,113) (906) +22.9%

PROFIT FOR THE PERIOD 2,693 2,970 -9.3%

Attributable to: 2,369 2,701 Owners of the Company 324 269 Non-controlling interests

EPS ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY

Basic 36.24 HK cents 41.31 HK cents -12.3%

Diluted 36.24 HK cents 41.31 HK cents -12.3%

Gross margin 49.0% 59.4%

Net margin 28.4% 41.5%

2020 Third Quarter Results Review ~ 25 E S G R A T I N G

Rating Agency Rating Issued Date Key Takeaways Previous Rating

 Risk score decreased in the past year th st  Ranked 18 out of 41 global water utilities companies (1 being Sustainalytics 33.8 (High Risk) 2020/6/20 lowest risk) NA  Low risk (EEW, Resources Use, Human Capital, Community Relations), Med risk (Corporate Governance), High risk (Product Governance)

 Green (Human Rights, Labour Rights, Environment, Anti- ISS Green 1 2019/12/16 Corruption) NA  No Red or Amber alert in any assessment category

 Rating upgrade driven by company’s focus on monitoring quality of water supplied and ISO9001 quality certification, improved disclosures on policies for minimizing the impact of its MSCI B 2019/11/22 operations on biodiversity, as well as initiatives for protecting CCC the local ecosystem and ensuring sustainable usage of natural resources  Score improvement in water stress, product safety & quality, biodiversity & land use and carbon emissions

2020 Third Quarter Results Review ~ 26 SUMMARY

• Review • Keep Focusing

– Achieved stable performance in the Group’s core business segments in the nine month – Seek investment opportunities in the areas of water resources management, property of 2020, despite adverse impacts from the COVID-19 outbreak and infrastructure development

– Monitor potential opportunities involving public-private-partnership projects and “The Greater Bay Area Initiative”

– The COVID-19 outbreak has affected business operations of some of the Group’s business segments, especially in the property investment and development segment, hotel segment, department store segment and expressway segment

– The Group remains in strong financial position and the core water resources management segment, which has experienced little impact from the outbreak, will provide support for the Group’s overall performance in 2020

2020 Third Quarter Results Review ~ 27 LEGAL DISCLAIMER

This presentation does not constitute an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation or is unlawful without compliance with any registration, filing or other requirements. This presentation contains “forward-looking statements” which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding the Company’s future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. Words such as "expect," "intend," "plan," "believe," "estimate," "may," "will," "should" and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, which reflect the current expectations and plans of the directors and management of the Company, may not materialize or may change. Many risks, uncertainties and other factors, some of which are unpredictable and beyond the Company’s control, could affect the matters discussed in these forward-looking statements. These factors include, without limitation, economic and business conditions globally and in the countries where we operate, the Company’s ability to predict and respond quickly to market developments, pricing trends and competition; changes in applicable laws and regulations (including applicable tax and tariff rates). Any variance from the expectations or plans on which these forward-looking statements are based could cause the Company’s actual results or actions to differ materially from those expressed or implied in these statements. These statements are not guarantees of future performance and we caution readers not to place undue reliance on these statements. The Company undertakes no obligation to update any forward-looking statements in this presentation, whether as a result of new information or any subsequent change, development or event. All forward- looking statements in this presentation are qualified by reference to this paragraph.

2020 Third Quarter Results Review ~ 28 THANK YOU

2020 Third Quarter Results Review ~ 29