MTR Corporation Company Overview July 2021 MTR Corporation Page 1 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. MTR Corporation Page 2 Recent updates In 2020, a cross-the-board financial impact of the COVID-19 on recurrent profit, mainly due to: • A 30.9% decline in average weekday patronage • Significant revenue loss from station closures • Rental concession to tenants at station kiosks and shopping malls • Negative financial impact on Mainland China & International businesses Since January 2021 • Domestic Services average weekday patronage declined in January (-22.1% YoY), but rebounded in February-May (+20.9% to +44.2% YoY) from the gradual relaxation of social distancing and low base in 2020 • Retail sales recovery were largely in line with overall HK market • Rental concessions were granted on a case-by-case basis • Advertising activities also started to rebound in March • Revenue loss during station closures (mainly cross-boundary stations) • Mainland China and Overseas businesses continue to improve but remain vigilant on isolated outbreak MTR Corporation Page 3 Recent updates (Transport operations) • Patronage stayed low in January in the middle of 4th wave Overall Patronage (‘000) of COVID-19 outbreak but has started to rebound since 6,000 80% 44.2% 60% February. March-May patronage were already close to 5,000 33.1% 33.0% 40% 4,000 20% October/November 2020 level. 21.7% 3,000 -19.6% 0% -0.5% -6.7% (20%) 2,000 • Lo Wu, Lok Ma Chau and West Kowloon stations remain -23.6% -25.7% -27.7% -29.0% (40%) 1,000 -35.0% -37.6% -44.9% -42.5% (60%) closed. -49.6% -46.4% 0 (80%) Jul Apr Oct Jun Jan Mar Feb Nov Dec Aug Sep • “20% Rebate for Every Octopus Trip” was offered from 1 July May 2019 2020 2021 2020 to 31 March 2021. 2020 %YoY 2021 %YoY • According to FAM, fare was adjusted by -1.85%, effective 27 Patronage 2020 Jan Feb Mar Apr May June 2021. Together with the committed rebate under (% YoY) 2021 2021 2021 2021 2021 Domestic Services FAM, the actual fare of the Octopus & QR code ticket -26.7% -22.1% 33.4% 32.4% 44.2% 20.9% (avg. weekday) passengers will be more or less the same from 1 April 2021 Cross-boundary -92.8% -99.6% -85.7% 0.0% 100.0% 0.0% until 1 January 2022, representing a saving of ~5% (avg. daily) AEL (avg. daily) -80.6% -84.1% -60.5% -30.1% 15.6% 6.0% High Speed Rail -94.0% -100.0% n.m. n.m. n.m. n.m. (avg. daily) Overall -30.9% -25.7% 33.1% 33.0% 44.2% 21.7% MTR Corporation Page 4 Recent update (Station commercial and Property rental) • Hong Kong retail sales were +10.5% YoY in the month of May, and +8.9% for YTD 2021 • Retail sales at shopping malls outperformed overall Hong Kong retail sales • Retail sales at Station kiosks underperformed overall Hong Kong retail sales • Duty Free Shops remain closed • Advertising activities has rebounded strongly since March • The LOHAS, our new mall at LOHAS Park, was opened in August 2020, and has been 90% pre-leased so far • Full 12-month contribution from the acquisition of remaining interests in Telford Plaza II and PopCorn 2 (9-month for 2020) • In our shopping malls, we will continue to collaborate 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. MTR Corporation Page 5 Recent updates (Property development) • Launch presales of LP10 (LOHAS Park package 10) and SOUTHLAND (THE SOUTHSIDE package 1) • Presale of PAVILIA FARM III in progress, and target to launch THE SOUTHSIDE package 2 in 2H2021 • The tender of THE SOUTHSIDE package 5 & 6 were awarded in January and April, respectively • Subjected to market condition and approvals, aim to tender out three more property packages (Tung Chung Traction Substation, Pak Shing Kok Ventilation Building and Tung Chung East Extension package 1) before March 2022 MTR Corporation Page 6 Recent updates (Railway projects) • Full Tuen Ma Line opened on 27 June 2021 • On 27 May 2021, the Government invited MTRC to proceed with detailed planning and design of the Hung Shui Kiu Station project. MTR Corporation 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 Outside of Hong Kong (2) (1) Property Rental Station Commercial (1) Transport Operations (1) 2.6 5.7 0.3 1.1 1.5 Others (3) 0.9 1.5 6.5 1.3 (4) 4.2 Recurrent EBIT 3.9 4.1 4.3 1.0 6.2 11.7 11.7 12.6 4.4 5.0 4.2 4.7 8.2 0.4 5.1 0.6 2.2 2.6 1.7 2.0 2.5 1.3 (0.2) (0.1) - (0.2) (0.6) (2.0) (2.6) (5.4) (1.6) 2016 2017 2018 2019 2020 1H2020 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, Ngong Ping 360, 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 EBIT included adverse impact from the public order events (HK$2.3 billion), and the provisions relating to the Hung Hom incidents (HK$2 billion) and the South Western Railway franchise agreement (HK$0.4 billion) 6. 2020 EBIT included the adverse impact from COVID-19, and the provisions relating to SCL project management cost (HK$1.4 billion) Vision: an internationally-recognised leading company that connects and grows communities with caring, innovative and sustainable services. MTR Corporation 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 MTR Corporation 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 MTR Corporation Page 10 HONG KONG TRANSPORT OPERATIONS Page 11 MTR Corporation Page 11 MTR system map No. of Stations: 98(1) Route Length: 269 km(2) 3 Rail Segments: Domestic Service, Airport Express and Cross-boundary Service 1. 97 heavy rail stations, 1 XRL station (ex. 68 light rail stops) 2. 269km of heavy rail, 36km of light rail, 26 km of XRL MTR Corporation Page 12 Market Share Hong Kong Franchised Public Transport Green Trams & Green Trams & minibuses ferries minibuses ferries 13.5% 2.1% 14.2% 2.1% MTR MTR 47.4% 45.3% Buses Buses 37.0% 38.4% Jan – Dec 2019 Jan – Dec 2020 Cross-harbour Cross-boundary & HSR Airport Express 67.5% 66.1% 51.3% 47.2% 20.5% 16.3% (1) (1) Jan-Dec 2019 Jan-Dec 2020 Jan-Dec 2019 Jan-Dec 2020 Jan-Dec 2019 Jan-Dec 2020 Sources: The Transport Department / Immigration Department / Airport Authority Hong Kong 1. Calculation based on the proportion of air passenger using Airport Express over the total air passenger figures reported by the Airport Authority Hong Kong MTR Corporation Page 13 Patronage Domestic Service(1) (m) Airport Express (m) YoY change 16.6 17.7 1,586.5 1,637.9 1,670.0 1,568.2 16.1 15.8 YoY % 1,145.0 change 19.0 528.0 57.9% 3.1 0.8 2016 2017 2018 2019 2020 5M2021 2016 2017 2018 2019 2020 5M2021 Cross-boundary Service (m) High Speed Rail (m) 16.9 113.3 112.5 117.4 104.2 YoY change 5.3 97.3% 7.6 1.0 0.2 0.0 2016 2017 2018 2019 2020 5M2021 2016 2017 2018 2019 2020 5M2021 1. Domestic Service comprises the Tsuen Wan Line, Kwun Tong Line, Island Line, South Island Line, Tseung Kwan O Line, Tung Chung Line, Disneyland Resort Line, East Rail Line (excluding Cross-boundary service), Tuen Ma Line Phase 1 and West Rail Line MTR Corporation Page 14 Hong Kong Transport Operations (HK$b) 43.2% 41.1% 41.9% 50.0% 29.6% 1.7% 24 0.0%HKTO revenue Light Rail, Bus, Intercity and others 19.9 19.5 Airport Express 19 18.2 17.7 -50.0%High Speed Rail Cross-boundary Service Domestic Service 14 -100.0% 11.9 EBITDA EBITDA margin (%) 9 -150.0% 8.2 6.2 7.6 7.5 5.9 4 -200.0% 0.1 -0.4 -1 2016 2017 2018 2019 2020 1H20 -250.0% MTR Corporation 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