2013 Annual Results 13 March 2014 Content Annual Results Business Review Market Analysis Guidance & Strategy 2 Annual Results 3 Financial Summary Turnover (HK$ mn) 82,469 64,581 51,332 Unit 2013 2012 Change 46,650 39,278 Turnover HK$ Million 82,469.1 64,580.7 27.7% Turnover(including 09 10 11 12 13 share of turnover of HK$ Million 100,472.5 77,907.9 29.0% JVs) Net Profit (HK$ mn) 23,044 Gross Profit HK$ Million 26,822.0 24,725.2 8.5% 18,722 15,464 12,671 Net Profit HK$ Million 23,043.7 18,722.2 23.1% 7,646 Gross Margin Percentage % 35.1* 38.3 - 3.2 ppts 09 10 11 12 13 DPS (HK cents) Net Profit Margin Percentage % 27.9 29.0 -1.1 ppts 47 39 ** 33 27 EPS HK cents 282.0 229.0 23.1% 20 DPS HK cents 47.0 39.0** 20.5% 09 10 11 12 13 Note:*Excluding affordable housing and the three projects repurchased from the fund. 4 **Excluding the special dividend of HK$2 cents per share paid last year. Financial Summary (cont’d) Shareholder’s Equity (HK$ bn) 110.0 87.2 71.6 55.6 Unit 31/12/2013 31/12/2012 Change 42.6 Cash on Hand HK$ Million 41,479 40,932 1.3% 09 10 11 12 13 L/T Debt HK$ Million 69,397 53,243 30.3% ROE (%) 25.8 24.3 Shareholders' 23.6 23.4 HK$ Million 109,971 87,244 26.0% 20.1 Equity Net Gearing (%) Percentage % 28.4 20.5 7.9 ppts 09 10 11 12 13 Liabilities/Assets ROA(%) Percentage % 62.5 61.9 0.6 ppts (%) 9.2 9.1 9.2 8.8 ROE(%) Percentage % 23.4 23.6 -0.2 ppts 7.7 ROA(%) Percentage % 8.8 9.2 -0.4 ppts 09 10 11 12 13 5 Segment Results Highlights Property Development Turnover by Region Property Development Operating Profit by Region HK & HK & Macau Macau 6.5% 6.5% Western Hua Nan Region Hua Nan Region Western 14.4% Region 32.4% Region 31.9% 19.8% Northern Northern Region Region 16.9% 9.0% Hua Dong Hua Bei Hua Dong Hua Bei Region Region Region Region 15.4% 13.0% 19.8% 14.4% Total Property Development Turnover: HK$ 78,615 million Property Development Operating Profit: HK$ 23,542 million Turnover Segment Profit (HK$ million) (HK$ million) 2013 2012 Change 2013 2012 Change Property Development 78,615 61,407 28.0% 27,316 25,152 8.6% Property Investment 857 585 46.5% 4,204 4,147 1.4% Others 2,997 2,589 15.8% 221 136 62.5% Total 82,469 64,581 27.7% 31,741 29,435 7.8% 6 Financial Updates Corporate ratings Company Type Ratings Last Rating Date Last Credit Rating Action S&P Issuer Credit Ratings BBB+ 23-Oct-2013 Outlook STABLE Moody’s Issuer and Bond Ratings Baa1 23-Oct-2013 Outlook STABLE Fitch Issuer and Bond Ratings BBB+ 23-Oct-2013 Outlook STABLE Comments Ratings reflect COLI's leading market position in China's property sector, including its track record for business execution through the cycle and its strong cash flow. In February 2013, Fitch Ratings initially assigned China Overseas Land & Investment Ltd (COLI) a Long Term Issuer Default Rating (IDR) of ‘BBB+’ with Stable Outlook and a senior unsecured debt rating of ‘BBB+’. In April 2013, S&P and Moody’s upgraded the issue rating on the company's outstanding senior unsecured notes to 'BBB+' from 'BBB‘ and ‘Baa1’ from ‘Baa2’ respectively. In October 2013, COLI successfully priced USD 1.5 billion triple-tranche 5/10/30- year offering at interest rate of 3.375%, 5.375% and 6.375% respectively. This is the biggest USD Reg S bond issued by a China Company. 7 Financial Resources & Debt Structure Interest bearing debts by currency Debt maturity profile 12.0% Within 1 5-10 10+ $HK mn 1-5 years year years years Bank 42.3% RMB 3,303 36,708 - - borrowings US$ HK$ Bonds - 9,637 16,911 6,140 45.7% Subtotal 3,303 46,345 16,911 6,140 Percentage 5% 64% 23% 8% Bank balance and cash by currency Amount (HK$ billion) 9.6% Bank balance and cash 41.48 15.2% Unused credit facilities 8.76 RMB US$ Total 50.24 HK$ 75.2% The weighted average borrowing cost* 3.7% * Total finance costs divided by the weighted average borrowing 8 Business Review 9 2013 Property Sales 1.1% 0.1% 15.3% 23.7% 18.6% Hua Nan Region 24.8% Hua Dong Region 14.2% Hua Bei Region Northern Region 20.4% Western Region HK & Macau 14.0% 31.7% 24.5% 11.6% Contracted sales in value by region Contracted sales in GFA by region Hua Dong Hua Bei Northern Western Region Hua Nan Region HK & Macau Total Region Region Region Region Subscription GFA* 17.87 26.68 11.67 11.42 11.74 0 79.38 (‘0000sq.m.) Subscription amount* 41.70 53.74 53.98 13.80 22.13 0 185.35 (HK$’00mn) *As at the end of Dec 2013 In 2013, the total property contracted sales amounted to HK$138.5 billion and the total contracted GFA reached 9.2 million square meters. As at the end of December 2013, the property subscription sales amounted to HK$18.5 billion and the subscription GFA reached 793,800 square meters. 10 2014 Property Sales Updates Contracted property sales Contracted area sold GFA (HK$’00 million) (‘0000 sq.m.) The Company and its subsidiaries Regional Breakdown Hua Nan Region 62.77 31.18 Hua Dong Region 52.41 28.62 Hua Bei Region 39.90 10.30 Northern Region 24.21 22.13 Western Region 19.95 10.01 Hong Kong and Macau 0 0 Sub-total for the Company and its 199.24 102.24 subsidiaries Jointly-controlled entities of the Company 30.30 19.28 Associated companies of the Company 13.66 15.02 Total 243.20 136.54 From January to February 2014, the accumulated contracted property sales of the China Overseas Series of Companies amounted to approximately HK$24.32 billion and the accumulated corresponding GFA sold was approximately 1,365,400 square meters. As at 28 February 2014, the China Overseas Series of Companies had recorded subscribed property sales of approximately HK$7.791 billion, which are expected to be turned into contracted property sales in the following months. 11 Project Completed in 2013 COLI projects completion City Project name GFA(㎡) A total of 35 projects and 10 JV Shenzhen Southern Garden(阅景馨园) 232,908 projects were completed in 2013. Zhongshan Dragon Bay(龙湾国际） 188,763 Golden Sand Coast (金沙湾） 148,803 Foshan #1 Lake Lantern(千灯湖一号) 256,790 Total Gross Floor Area (GFA) completed 2 Changsha International Community(国际社区) 280,552 was 6.0 and 2.4 million m respectively. Xiamen La Cite(寰宇天下） 131,836 Glory City(誉城) 262,603 About 84.4% and 72.6% of the total Guangzhou The Piedmond (雲麓公馆) 77,410 2 Blossom Cove(花城湾) 95,309 saleable GFA m completed was sold by Residence Nine（九号公馆） 286,783 31 December 2013 respectively. Beijing Laogucheng(老古城) 61,954 Jinan International Community(国际社区) 298,944 Orichid Garden(中海兰庭) 173,585 Royal Court(紫御华府) 164,522 Changchun Golden Violet（紫金苑) 149,910 International Community(国际社区) 20,759 Qingdao International Community(国际社区) 601,765 Dalian Violet Palace(紫御观邸) 62,755 COLI City(中海城) 223,279 Shenyang International Community(国际社区) 58,832 Yantai Windsor Pavilion(紫御公馆) 248,210 The Majestic(万锦熙岸) 107,281 Nanjing The Phoenix(凤凰熙岸) 111,541 International Community, Nanjing 12 Project Completed in 2013 Project completion by region City Project name GFA(㎡) 1% Rayal Bay(御景湾) 142,754 Suzhou International Community(国际社区) 369,122 21% 23% Lohas Island(独墅岛) 27,768 Hua Nan Region Nanchang Sunrise Manor(朝阳郡) 43,440 Hua Dong Region International Community(国际社区) 271,782 Xi'an Hua Bei Region Royal Masion(紫御华府) 287,942 Northern Region Chengdu Southern Mansion(城南华府) 326,621 桃花源 20% Western Region The Wonderland ( ) 81,184 22% Zhuhai Midtown(富华里) 105,033 Hong Kong and Macau Silver Bay(银海湾) 42,047 13% The Grandeur(龙苑) 6,175 Hong Kong The Green(歌赋岭) 35,196 Subtotal: 5,984,158 COLI JV projects completion No. of Project completion by region City Project name GFA(㎡) Tianjin Peaceland Cove(北宁湾) 186,753 Jinan Dragon Manor（奥龙官邸) 65,624 2 5 Wuhan The Glorious(万锦江城) 186,960 12 Hua Nan Region Ningbo Elegant Palace (凯旋门) 270,412 Hua Dong Region Shanghai The Amethyst(紫御豪庭) 301,276 Hua Bei Region La Cite(寰宇天下) 334,520 9 Hangzhou Northern Region The Tudor(篁外) 82,246 Suzhou Gusu Mansion(姑苏公馆) 81,497 Western Region International Community(国际社区) 874,753 Hong Kong and Macau Chongqing 11 La Cite(寰宇天下) 12,051 6 Subtotal: 2,396,092 Total: 8,380,250 13 Property Unbooked, Sales Presold & Booked GFA & Amount* 2012 Unbooked Sales 2013 Property Sales 2013 Booked Property Sales Presold Property unbooked 408 637 759 1,213 732 1,111 435 739 962 786 618 540 486 662 314 392 325 251 151 141 192 94 43 77 GFA('0000sq.m.) Amount(HK$'00mn) GFA('0000sq.m.) Amount(HK$'00mn) GFA('0000sq.m.) Amount(HK$'00mn) GFA('0000sq.m.) Amount(HK$'00mn) JV 688 Note: *Excluding subscription sales and COGO’s property sales 14 Land Acquisitions in 2013 Attributable Land Area Land Cost No.