2018 Results

Presentation

1 March 2019
Agenda

Speakers: Robert Wong, Chief Executive & Simon Dixon, Chief Financial Officer

1. Hongkong Land’s Journey since 2016

2. 2018 Results Highlights

3. Investment Properties

4. Development Properties

5. Financial Highlights

6. Outlook

7. Q&A

2018 Results 2
Hongkong Land’s Journey since 2016

Significant increase in new investments over the last two years

Average Yearly Investment by Geography* Average Yearly Investment by Business Segment*

China Singapore Thailand Rest of Asia Investment Properties Development Properties

2017 - 2018 2017 - 2018

US$3.0bn US$3.0bn

2012 - 2016 2012 - 2016

US$0.6bn US$0.6bn

* Investment is defined as the Group’s equity contribution and share of project-level debt

2018 Results 3
Hongkong Land’s Journey since 2016

Increasing contribution from Development Properties

Operating Profit by Segment#

Investment Properties Development Properties
US$m
1,800
$1,626m
1,600
$1,501m

1,400
$1,256m 36%
34%
1,200
27%
1,000

800

600 64%
66%
73%
400

200

0
2012 - 2016 *^ 2017 * 2018
* Restated
^ Average operating profit between 2012 and 2016
# Before corporate overheads

2018 Results 4
2018 Results Highlights
2018 Results 5
2018 Results Highlights

US$1,036m US$38.3bn
1,036
Underlying profit 822
947 Shareholders’ funds 37 38

+9% +3%
* 31
* *
YoY YoY *

2016 2017 2018 Dec 2016 Dec 2017 Dec 2018

Key figures Highlights

 Profit1: US$2,457m (2017: US$5,614m)  Underlying profit up 9% to a record US$1,036 million
 Net debt: US$3.6bn (Dec 2017: US$2.5bn)  Full-year dividend up 10%
 NAV per share: US$16.43 (Dec 2017*: US$15.66)  Stable asset values
 Final dividend per share: US¢16 (1H 2018: US¢6)  Twelve new projects secured

1 Attributable to Shareholders of the Company

* Restated

2018 Results 6
Investment Properties
2018 Results 7
Investment Properties Overview

Investment Properties are primarily located in Hong Kong and Singapore

TOTAL COMPLETED AREA (HKL’s share)

(000’s sq. ft NFA)
83 249 4,864 389
TOTAL TOTAL TOTAL TOTAL

HANOI MACAU HONG KONG BEIJING

75 98 4,139 389
8 151 582
143 9,242*
TOTAL
88 258
TOTAL TOTAL

404
BANGKOK TOTAL OTHERS
27 42
61 216 Office 7,165
PHNOM PENH
198
Retail 1,473
112
94
1,779
TOTAL
Hotel 604

1,128
SINGAPORE TOTAL
1,648
131
*Equivalent to 859,000 sq. m.
JAKARTA
1,036
*As at 31 Dec 2018
92

2018 Results 8
Hong Kong Portfolio – Office

Positive rental reversions and low vacancy as market supply remained tight
AVERAGE RENTS & VACANCY
2016 2017 2018
13%
Average net rent
103 108 113
1% (HK$ psf/month)
2%
Year-end vacancy 2.2% 1.4% 1.4%
6%
40% Weighted average lease expiry
3.8 3.7 4.0
OFFICE (years)
TENANT
8% PROFILE EXPIRATION & INTERIM RENT REVISIONS
BY AREA
2019 2020 2021
Total lettable office area subject
to expiration/rent revisions 1,084 969 1,213
(’000 sq. ft)
% of area subject to
26% 23% 30%
30% expiration/rent revisions

- Expiration 20% 18% 14%

Banks and Other Legal Accounting Property
Financial Services
- Rent revisions 6% 5% 16%
Trading Government Others
Average expiring net rent
110 118 119
(HK$ psf/month)

2018 Results 9
Hong Kong Portfolio – Retail

Higher rents due to positive reversions and higher turnover rent

14%
AVERAGE RENTS & VACANCY

6% 2016 2017 2018

RETAIL Average net rent

218 224 233
TENANT 49%
(HK$ psf/month)
PROFILE
BY AREA
Year-end vacancy 0% 0.1% 0.3%

31%
Weighted average lease expiry
2.8 2.7 2.4
(years)

Fashion & Accessories Food & Beverages

Jewellery & Watches Others

2018 Results 10
Singapore Portfolio – Office

Positive rental reversions as market continued to recover

AVERAGE RENTS & VACANCY
5% 2016 2017 2018
2%
5% Average gross rent
9.3 9.1 9.2
(S$ psf/month)
6%
Year-end vacancy 0.1% 0.3% 2.5%

6% Weighted average lease expiry

4.8 4.1 3.9
OFFICE (years)
TENANT
PROFILE EXPIRATION & INTERIM RENT REVISIONS
7%
BY AREA 69%
2019 2020 2021
HKL’s Share: Total lettable office
area subject to expiration/rent 202 341 589
revisions (’000 sq. ft)
% of area subject to
12% 21% 36%
expiration/rent revisions

Banks and Other Natural Resources IT Services & - Expiration 5% 14% 25%
Financial Services Consultancy

Legal Accounting Property - Rent revisions 7% 7% 11%

Average expiring gross rent

Others 9.6 9.1 9.8
(S$ psf/month)

2018 Results 11
Rest of Asia Portfolio

Performance within expectation

MAINLAND CHINA SOUTHEAST ASIA

Beijing – WF CENTRAL (84%-owned) Jakarta – Jakarta Land (50%-owned)

 Prestigious retail centre, which includes an exclusive  Existing portfolio features 210,000 sq. m. NFA,
luxury hotel (Mandarin Oriental) including WTC 3 which was completed in early 2018

 Destination for renowned art and cultural exhibitions  Average gross rent: US$26 psm per month
in the city (2017: US$25 psm per month)

 Prominent fashion houses making their debuts in  Occupancy (excluding WTC 3): 91%
mainland China
Phnom Penh – EXCHANGE SQUARE
 Over 40,000 sq. m. NFA of retail space (100%-owned)
 Retail component had its grand opening in May 2018  Grand opening in May 2018

 Occupancy: 88%  NFA: 25,000 sq. m.

 Hotel opening in March 2019  Average gross rent: US$24 psm per month (2017:
US$25 psm per month)
 Occupancy: 85%

2018 Results 12
Development Properties
2018 Results 13
Development Properties Overview

The Development Properties portfolio spans primarily across seven countries and 14 cities, with a key focus on
Mainland China and Singapore

TOTAL DEVELOPABLE AREA (HKL’s share)

THAILAND MAINLAND CHINA
311 6,151 3,034 (000’s sq. m. GFA)
-
TOTAL TOTAL 3,117
311

167 VIETNAM
16
TOTAL
3
9,299*
TOTAL 152
TOTAL
OTHERS
3
-

SINGAPORE
-
194 194 Constructed 3,353
TOTAL THE PHILIPPINES
881 182 Under construction/ 5,946
TOTAL 699 to be developed
771
TOTAL MALAYSIA
37
734
INDONESIA
821 81
TOTAL 740
*As at 31 Dec 2018

2018 Results 14
Mainland China Portfolio – Overview

CHONGQING WUHAN BEIJING

 Ten projects  Wuhan Dream Land  Central Park (40%-owned)
 Total GFA 6.6 million sq. m. (50%-owned)  Total GFA 329,000 sq. m.
(HKL’s share: 4.5 million sq.  Total GFA 493,000 sq. m. (HKL’s share: 132,000 sq. m.)
m.) (HKL’s share: 247,000 sq. m.)

CHENGDU SHANGHAI
NANJING
 Two projects  Two projects
 Total GFA 1.1 million sq. m.  Three projects
 Total GFA 631,000 sq. m.
(HKL’s share: 509,000 sq. m.)  Total GFA 769,000 sq. m.
(HKL’s share: 224,000 sq. m.)
(HKL’s share: 340,000 sq. m.)
HANGZHOU
 Hangzhou Bay (30%-owned)
 Total GFA 776,000 sq. m.
2018 Results 15
(HKL’s share: 233,000 sq. m.)
Mainland China Portfolio

Higher contracted sales but lower revenue and profit recognised due to timing of completions

REVENUE RECOGNISED*# CONTRACTED SALES# SOLD BUT UNRECOGNISED SALES#

Chongqing Chengdu Shanghai Sales to be recognised after next 12 months

Chongqing Chengdu
US$m US$m US$m Sales to be recognised within next 12
Shanghai Beijing Beijing Other Cities
1,600 1,800 1,600 months

$1,578m
1,400 $1,347m 1,600 1,400 $1,358m
$1,207m 1,400
1,200 1,200
$1,083m
$1,032m
1,200 $1,105m $1,112m
1,000 1,000
1,000
800 800
$676m 800
600 600
600

400 400
400

200 200 200

- - -
2016 2017 2018 2016 2017 2018 2016 2017 2018
* Includes only revenue from property sales
# The above analysis includes share of Joint Ventures & Associates

2018 Results 16
Singapore Portfolio – Overview

IMAGE TO BE UPDATED

LAKE GRANDE PARC ESTA

 710 units  1,404 units

 537,000 sq. ft GFA  1.05 million sq. ft GFA
(50,000 sq. m.) (98,000 sq. m.)
 Completion: 2019  Completion: 2021
 100% pre-sold  18% pre-sold

TULIP GARDEN
MARGARET VILLE
 50% JV with Yanlord
 672 units  309 units
 507,000 sq. ft GFA  239,000 sq. ft GFA
(47,000 sq. m.) (22,000 sq. m.)
 Completion: 2022  Completion: 2021
 42% pre-sold

2018 Results 17
Singapore Portfolio

Revenue and profit contribution driven by the completion of Sol Acres

REVENUE RECOGNISED CONTRACTED SALES SOLD BUT UNRECOGNISED SALES

J Gateway LakeVille LakeVille Sol Acres Sales to be recognised after next 12 months
Sol Acres Lake Grande Lake Grande Margaret Ville Sales to be recognised within next 12 months
Margaret Ville Parc Esta
US$m US$m US$m
1,000 $953m 700 $687m 1,200
$1,135m

600
1,000
800

500 $491m
800
$726m
600
400 $368m
$487m
600
300
400 $420m
400
$271m 200
200
200
100

- - -
2016 *
2017 *
2018 2016 2017 2018 2016 * 2017 * 2018

* Restated

2018 Results 18
Rest of Asia Portfolio

Performance within expectation

INDONESIA THE PHILIPPINES VIETNAM

Nava Park (49%-owned)
 Site area: 68 ha; GFA: 741,000 sq. m.
 734 units launched for sale, 84% pre-
sold
 Completion: 2017 to 2033
Anandamaya (40%-owned)
 Site area: 1.3 ha; GFA: 116,000 sq. m.
 509 units, 95% pre-sold
 Completion: 2018
Asya (33.5%-owned)
 Site area: 68 ha; GFA: 1.1 million sq. m.
 351 units launched for sale, 32% pre-
sold
 Completion: 2019 to 2031
Two Roxas Triangle (40%-owned)
 Site area: 0.4 ha; GFA: 98,000 sq. m.
 182 units, 100% pre-sold
 Completion: 2019
Mandani Bay (40%-owned)
 Site area: 20 ha; GFA: 1.2 million sq. m.
 3,115 units launched for sale, 71% pre-
sold
 Completion: 2020 to 2035
THAILAND
The ESSE Sukhumvit 36
(49%-owned)
 Site area: 0.4 ha; GFA: 38,000 sq. m.
 338 units, 59% pre-sold
 Completion: 2020
The Nassim (50%-owned)
 Site area: 0.6 ha; GFA: 31,000 sq. m.
 238 units, 100% pre-sold
 Completion: 2018
29B NDC (70%-owned)
 Site area: 0.5 ha; GFA: 57,000 sq. m.
 515 luxury apartments
 Completion: 2021
Thu Thiem River Park
(64%-conditionally acquired)
 Site area: 3.5 ha; GFA: 175,000 sq. m.
 1,111 luxury apartments and 52
commercial units
 Completion: 2021 to 2024

2018 Results 19
New Projects

Twelve new Development Properties projects were added during 2018

CHONGQING SHANGHAI CHENGDU

Liangjiang New Project
(50%-owned)
• JV with Excellence Group
• Residential project
• GFA: 61,000 sq. m.
• Completion: 2021
Yuelai Project (100%-owned)
• Residential project
• GFA: 125,000 sq. m.
• Completion: 2021
Caohejing Project (26.7%-
owned)
• JV with Vanke, China
Fortune Properties and Xuhui
Land
• Mixed-use
• GFA: 392,000 sq. m.
• Completion: 2021 to 2023
Yixinhu Project (33%-
owned)
• JV with Longfor and Jinke
• Residential project
• GFA: 155,000 sq. m.
• Completion: 2021

2018 Results 20
New Projects

Twelve new Development Properties projects were added during 2018

NANJING SINGAPORE PHILIPPINES

JL CENTRAL (50%-owned)
• JV with Pingan
• Office and retail
• GFA: 255,000 sq. m.
• Completion: 2023
Jiangbei Project (50%-
owned)
• JV with Longfor
• Residential project
• GFA: 254,000 sq. m.
• Completion: 2020 to 2021
Tulip Garden (50%-owned) Bridgetowne (40%-owned)
• JV with Yanlord • JV with Robinsons Land
• Residential project • Mixed-use
• GFA: 47,000 sq. m. • GFA: 144,000 sq. m.
• 672 units • 2,048 units
• Completion: 2022 • Completion: 2023 to 2026

2018 Results 21
New Projects

Twelve new Development Properties projects were added during 2018

INDONESIA THAILAND

Arumaya (40%-owned) Gatot Subroto (50%-owned) Nonthaburi (49%-owned) King Kaew (49%-owned)

• JV with Astra
• Residential project
• GFA: 24,000 sq. m.
• 262 units
• Completion: 2021
• JV with Astra
• Residential and office
• GFA: 77,000 sq. m.
• 313 residential and 470
commercial units
• Completion: 2022 to 2023
• JV with Property Perfect
• Residential project
• GFA: 433,000 sq. m.
• Over 1,200 units
• Completion: 2020 to 2028
• JV with Property Perfect
• Residential project
• GFA: 164,000 sq. m.
• 438 units
• Completion: 2027

2018 Results 22
Financial Highlights
2018 Results 23
Consolidated Profit and Loss Account

Record underlying profit of US$1,036 million, up 9% year-on-year

FY2017* (US$m) FY2018 %YoY

1,616 Revenue 2,665 65

(740) Net operating costs (1,576) 113

876 Operating profit 1,089 24

302 Share of results of joint ventures 265 -12

(78) Net financing charges (114) 46

(152) Tax (206) 36

(1) Non-controlling interests 2 -300

947 Underlying profit 1,036 9

4,667 Non-trading items 1,421 -70

5,614 Profit attributable to shareholders 2,457 -56

* Restated

2018 Results 24
Movement in Underlying Profit

Increase in underlying profit driven by higher average rent in Hong Kong and development profit recognised
in Singapore

US$m

1,400

1,200
+$69m -$36m
+$56m $1,036m
1,000 $947m

800

600

400

200

0
Underlying profit Investment Properties Development Net increase in Underlying profit 2018
2017*^ operating profit Properties operating financing charges, tax,
(pre-tax) profit non-controlling
(pre-tax) interests & other
expenses

* Restated
^ The above analysis includes share of Joint Ventures & Associates

2018 Results 25
Operating Profit by Segment and Region

Hong Kong and Mainland China remain the largest profit contributors

INVESTMENT PROPERTIES# DEVELOPMENT PROPERTIES#

US$m 2017 2018 US$m 2017* 2018
$1,100 $582m
$1,044m $600
$988m
$1,000 $513m
$885m
$843m $500 $469m
$900
$431m
$800
$400
$700
$600
$300
$500
$400 $200
$300 $122m

$200 $116m $116m $100

$39m $37m
$100 $10m $19m $19m $24m -$6m -$8m
$11m

$0 $0

Hong Kong Mainland Singapore Rest of Asia Total -$100 Hong Kong Mainland Singapore Rest of Asia Total
China & Macau China

# The above analysis includes share of Joint Ventures & Associates

* Restated

2018 Results 26
Consolidated Cash Flow

Lower operating cash flows due to land payments

FY2017 (US$m) FY2018 %YoY

800 Operating activities 604 -25

(947) Investing activities (1,056) 12

(193) Financing activities 237 -223

(340) Net cash inflow/(outflow) (215) -37

1,898 Cash and cash equivalents at beginning of the year 1,617 -15

59 Effect of exchange rate changes (33) -155

1,617 Cash and cash equivalents at end of the year 1,369 -15

(4,166) Gross debt (excluding bank overdrafts) (4,933) 18

(2,549) Net debt at end of the year (3,564) 40

2018 Results 27
Properties Carrying Values

Higher market rents in Hong Kong; new Development Properties secured

INVESTMENT PROPERTIES - TOTAL VALUE# DEVELOPMENT PROPERTIES – NET INVESTMENT#^

Hong Kong Mainland China & Macau Pre-sale proceeds Mainland China, HK & Macau
US$m Singapore Rest of Asia US$m Singapore Rest of Asia
45,000 7,000
$5,150m
40,000 $38,515m 6,000
$36,813m $4,068m
35,000 5,000
$31,892m
30,000 4,000 $2,510m
25,000 3,000

20,000
2,000
15,000
1,000
10,000
0
5,000
-1,000
0
31 Dec2016*
31 Dec 2016 31
31 Dec 2017
Dec 2017* 31 Dec2018*
31 Dec 2018 -2,000 31 Dec 2016* 31 Dec 2017* 31 Dec 2018

# The above analysis includes share of Joint Ventures & Associates

* Restated ^ Includes contract assets

2018 Results 28
 Net Investment in Development Properties
24% of net investment in Development Properties relate to medium-term lease assets in Mainland China

25%
MEDIUM-TERM LEASE ASSETS IN OPERATION

8%

DEVELOPMENT
PROPERTIES

NET INVESTMENT
$5,150M# 16%
Landmark Riverside, Chongqing LCM, Shanghai
• NFA: 43,000 sq. m. (HKL’s share: • NFA: 60,000 sq. m. (HKL’s share:
43% 21,500 sq. m. 30,000 sq. m.)
• Opened in Sep 2016 • Opened in Sep 2018
8%

Singapore MEDIUM-TERM LEASE ASSETS UNDER DEVELOPMENT

Mainland China (for medium-term lease) (completed)
Mainland China (for medium-term lease) (under construction)
Mainland China (for immediate sale)
Others
 10 projects with medium-term lease assets under development, with an estimated
total NFA of 830,000 sq. m. (HKL’s share: 390,000 sq. m.)
 Yorkville North: 2020 completion

 JL CENTRAL: 2023 completion

# The above analysis includes share of Joint Ventures & Associates
 Others: 2019 to 2024 completion
2018 Results 29
Capital Management
Higher net debt; increased dividends with higher underlying EPS; share repurchases on an opportunistic
basis
NET DEBT DIVIDENDS
US$m (US¢) 2014 2015 2016 2017 2018
4,000
$3,564m Underlying earnings
3,500 41.64 39.53 34.92 40.24 44.24
per share*
3,000
$2,549m Dividend per share 19.00 19.00 19.00 20.00 22.00
2,500
$2,008m
2,000 Dividend payout
46% 48% 54% 50% 50%
ratio*
1,500

1,000 SHARE REPURCHASES

500  2018 share repurchases: US$132m
-  Average price of repurchased shares: US$6.95
2016 2017 2018
Interest Cover*^ 11.2 13.7 10.3  Share repurchases on an opportunistic basis; no fixed
policy
Net Gearing (%) 6 7 9
* Restated up to 2017
^ Calculated as underlying operating profits, including the Group’s share of associates and joint ventures’ operating profits, divided by net financing charges including the
Group’s share of associates and joint ventures’ net financing charges

2018 Results 30
Treasury Management

Financial position and liquidity remain strong

2017 2018 MATURITY PROFILE OF COMMITTED FACILITIES / BONDS (AT 31 DEC 18)

Net debt (US$m) 2,549 3,564 US$m Bank facilities (drawn & undrawn) Bonds*

3,000
$2,703m
Net gearing 7% 9% $2,408m
2,500

Average tenor of 2,000

5.9 6.2
debt (years)
1,500
Average interest
3.6% 3.5%
cost $869m
1,000
$662m
Credit ratings 500 $303m $262m

- S&P A A 0
2019 2020 2021 2022 2023 2024+

- Moody’s A3 A3 * Issued under MTN Programme which are at face value

2018 Results 31
Outlook
2018 Results 32
Outlook
Stable performance expected in 2019
INVESTMENT PROPERTIES
 Investment Properties are
expected to continue to
generate stable returns
 New strategic initiatives to
enhance tenant service offering
to be announced later this year
 Continue to look for attractive
opportunities to construct prime
investment properties in key
gateway cities in Asia
2018 Results
DEVELOPMENT PROPERTIES
 Higher completions in mainland
China expected in 2019, offset
by lower contribution in
Southeast Asia
 The Group remains active in
seeking development
opportunities in mainland China
and Southeast Asia, with a focus
on pure residential
developments with short
payback periods
FINANCIAL
 Net gearing expected to move
modestly higher due to recent
investments
 Maintain disciplined approach in
assessing opportunities
 Pace of new investments may
slow relative to prior two years
 Gradually increase dividend per
share over time as recurring
earnings increase
33
Q&A
2018 Results 34
Appendix
2018 Results 35
Hong Kong Investment Properties Summary

HKL’s SHARE
OFFICE RETAIL HOTEL TOTAL1
(’000 sq. ft NFA)
One Exchange Square 570 - - 570

Two Exchange Square 507 - - 507

Three Exchange Square 322 - - 322

Exchange Square Podium - 49 - 49

The Forum 41 - - 41

Jardine House 635 45 - 680

Chater House 417 39 - 456

Alexandra House 325 48 - 373

Gloucester Tower 470 - - 470

Edinburgh Tower 338 - - 338

The Landmark Mandarin Oriental - - 143 143

York House 110 - - 110

Landmark Atrium - 255 - 255

Prince’s Building 404 146 - 550

Total 4,139 582 143 4,8642

1 Excluding residential properties in Hong Kong of 71,000 sq. ft.
2 Equivalent to 452,000 sq. m.

2018 Results 36
Singapore Investment Properties Summary

HKL’s SHARE
OFFICE RETAIL TOTAL
(’000 sq. ft NFA)

One Raffles Link 242 70 312

One Raffles Quay 441 1 442

MBFC 965 60 1,025

Total 1,648 131 1,7791

1 Equivalent to 165,000 sq. m.

2018 Results 37
Other Investment Properties Summary

HKL’s SHARE
OFFICE RETAIL HOTEL TOTAL
(’000 sq. ft NFA)
Beijing - 389 - 389

Macau - 98 151 249

Jakarta 1,036 92 - 1,128

Hanoi 75 8 - 83

Bangkok 27 61 - 88

Phnom Penh 198 112 94 404

Others 42 - 216 258

Total 1,378 760 461 2,5991

1 Equivalent to 241,500 sq. m.

2018 Results 38
 Mainland China Development Properties Summary (1)

HKL’s SHARE
UNDER TO BE
YEAR OF SITE AREA DEVELOPABLE AREA CONSTRUCTED
PROJECT CITY INTEREST CONSTRUCTION DEVELOPED
ACQUISITION (ha) (m sq. m.) (m sq. m.)
(m sq. m.) (m sq. m.)
Central Park Beijing 40% 2001 40.2 0.13 0.13 - -
Yorkville South Chongqing 100% 2010 38.6 0.88 0.68 0.20 -
Yorkville North Chongqing 100% 2011 53.8 1.11 0.53 0.32 0.26
Bamboo Grove Chongqing 50% 2005 77.9 0.72 0.72 - -
New Bamboo Grove Chongqing 50% 2015 34.8 0.32 0.19 0.13 0.00
Landmark Riverside Chongqing 50% 2009 22.2 0.51 0.26 0.14 0.11
Central Avenue Chongqing 50% 2013 40.2 0.55 0.16 0.17 0.22
Bamboo Grove Riverside Chongqing 100% 2017 14.2 0.16 - 0.09 0.07
Lijia Landscape Chongqing 50% 2017 9.5 0.06 - 0.04 0.02
Liangjiang New Project Chongqing 50% 2018 4.1 0.03 - - 0.03
Yuelai Project Chongqing 100% 2018 8.3 0.13 - - 0.13
Continued on next slide

2018 Results 39
 Mainland China Development Properties Summary (2)

HKL’s SHARE
UNDER TO BE
YEAR OF SITE AREA DEVELOPABLE AREA CONSTRUCTED
PROJECT CITY INTEREST CONSTRUCTION DEVELOPED
ACQUISITION (ha) (m sq. m.) (m sq. m.)
(m sq. m.) (m sq. m.)
WE City Chengdu 50% 2010 19.0 0.46 0.24 0.11 0.11
Yixinhu Project Chengdu 33% 2018 6.2 0.05 - - 0.05
Hangzhou Bay Hangzhou 30% 2017 38.6 0.23 - 0.02 0.21
Yue City Nanjing 33% 2017 19.9 0.09 - - 0.09
JL CENTRAL Nanjing 50% 2018 2.5 0.13 - - 0.13
Jiangbei Project Nanjing 50% 2018 11.5 0.13 - - 0.13
Parkville Shanghai 50% 2015 9.1 0.12 0.12 - -
Caohejing Project Shanghai 26.7% 2018 11.8 0.10 - - 0.10
Wuhan Dream Land Wuhan 50% 2017 16.4 0.24 - 0.04 0.20

Total 479 6.15 3.03 1.26 1.86

2018 Results 40
Singapore Development Properties Summary

HKL’s SHARE

DEVELOPABLE UNDER TO BE
YEAR OF SITE AREA CONSTRUCTED
PROJECT INTEREST AREA CONSTRUCTION DEVELOPED
ACQUISITION (ha) (m sq. m.)
(m sq. m.) (m sq. m.) (m sq. m.)

Lake Grande 100% 2015 1.8 0.05 - 0.05 -

Margaret Ville 100% 2017 0.5 0.02 - 0.02 -

Parc Esta 100% 2018 3.5 0.10 - 0.10 -

Tulip Garden 50% 2018 2.9 0.02 - - 0.02

Total 8.7 0.19 - 0.17 0.02

2018 Results 41
 Other Southeast Asia Development Properties Summary (1)

HKL’s SHARE
UNDER TO BE
YEAR OF SITE AREA DEVELOPABLE AREA CONSTRUCTED
PROJECT COUNTRY INTEREST CONSTRUCTION DEVELOPED
ACQUISITION (ha) (m sq. m.) (m sq. m.)
(m sq. m.) (m sq. m.)

Nava Park Indonesia 49% 2012 67.5 0.36 0.03 0.05 0.28

Anandamaya Residences Indonesia 40% 2013 1.3 0.05 0.05 - -

Asya Indonesia 33.5% 2016 67.6 0.37 - 0.02 0.35

Arumaya Indonesia 40% 2018 0.7 0.01 - - 0.01

Gatot Subroto Indonesia 50% 2018 1.9 0.04 - - 0.04

The ESSE Sukhumvit 36 Thailand 49% 2017 0.4 0.02 - 0.02 -

Nonthaburi Thailand 49% 2018 74.4 0.21 - - 0.21

King Kaew Thailand 49% 2018 47.7 0.08 - - 0.08

Continued on next slide

2018 Results 42
 Other Southeast Asia Development Properties Summary (2)

HKL’s SHARE
UNDER TO BE
YEAR OF SITE AREA DEVELOPABLE AREA CONSTRUCTED
PROJECT COUNTRY INTEREST CONSTRUCTION DEVELOPED
ACQUISITION (ha) (m sq. m.) (m sq. m.)
(m sq. m.) (m sq. m.)

Two Roxas Triangle The Philippines 40% 1995 0.4 0.04 - 0.04 -

Mandani Bay The Philippines 40% 2013 19.6 0.47 - 0.03 0.44

Northpine The Philippines 40% 1996-2016 156.6 0.31 0.18 0.02 0.11

Bridgetowne The Philippines 40% 2018 1.8 0.06 - - 0.06

The Nassim Vietnam 50% 2014 0.6 0.02 0.02 - -

Thu Thiem River Park1 Vietnam 64% 2017 3.5 0.11 - - 0.11

29B NDC Vietnam 70% 2017 0.5 0.04 - 0.04 -

Others Malaysia & others n/a n/a 112.9 0.77 0.04 0.02 0.71

Total 557.4 2.96 0.32 0.24 2.40

1 Conditionally acquired

2018 Results 43
Consolidated Cash Flow - Operating Activities

FY2017 (US$m) FY2018 %YoY

876 Operating profit excluding non-trading items 1,089 24

(76) Net interest paid (127) 67

(137) Tax paid (172) 26

(549) Payments for Development Properties sites (809) 47

Development expenditure on Development

(298) (355) 19
Properties projects

1,018 Proceeds from Development Properties sales 1,328 30

94 Dividends received from joint ventures 139 48

(128) Others (489)* 282

800 604 -25

* Includes two bidding deposits, totaling US$93m, which were returned post year-end.

2018 Results 44
Consolidated Balance Sheet

FY2017* (US$m) FY2018 %YoY

Investment Properties

32,481 - Subsidiaries 33,712 4

4,332 - Joint ventures 4,803 11

36,813 38,515

Development Properties^

2,395 - Subsidiaries 2,299 -4

2,948 - Joint ventures 3,911 33

5,343 6,210 16

(1,275) Pre-sale proceeds (1,060) -17

(1,456) Others (1,731) 19

39,425 Gross assets (excluding cash) 41,934 6

Financed by:

36,876 - Total equity 38,370 4

2,549 - Net debt 3,564 40

39,425 41,934 6
* Restated
^ Includes contract assets
2018 Results 45
Gross Assets at 31 Dec 2018

12% 11%

13%

GROSS ASSETS GROSS ASSETS

BY ACTIVITY BY LOCATION

88% 76%

Investment Properties Development Properties Hong Kong Southeast Asia Mainland China and Macau

2018 Results 46
Properties Carrying Values at 31 Dec 2018

2% 25%
5%

10%

INVESTMENT DEVELOPMENT
PROPERTIES PROPERTIES
24%
TOTAL VALUE NET INVESTMENT
$38,515M# $5,150M#

43%

83% 8%

Hong Kong Singapore Mainland China (for immediate sale) Singapore

Mainland China and Macau Others Mainland China (for medium-term lease) Others

# The above analysis includes share of Joint Ventures & Associates

2018 Results 47
Investment Properties – Basis of Valuation

CAPITALISATION RATES
2017 1H 2018 2018

Hong Kong Office – Exchange Square 1 & 2 3.00% 3.00% 3.00%

Hong Kong Retail – Landmark Atrium 4.50% 4.50% 4.50%

Singapore Office – MBFC 3.25% 3.25% 3.25%

2018 Results 48
Treasury Management

LIQUIDITY AT 31 DEC 2018 (All figures in US$ billion)

Liquidity at
HK$1 S$2 US$ RMB THB3 TOTAL
31 DEC 2017

Committed lines 6.8 4.9 1.6 - 0.7 - 7.2

Gross debt 4.1 3.2 1.0 - 0.5 0.2 4.9

Available lines 2.7 1.7 0.6 - 0.2 (0.2) 2.3

Cash 1.6 - 0.3 0.5 0.5 - 1.3

Available liquidity 4.3 1.7 0.9 0.5 0.7 (0.2) 3.6

1 HK$ debt includes US$ debt swapped into HK$
2 S$ debt includes HK$ debt swapped into S$
3 THB debt is funded by uncommitted lines

2018 Results 49
Treasury Management

DEBT MANAGEMENT AND HEDGING POLICIES AT 31 DEC 2018

%
100
THB 5%
90 RMB 10%
80
S$ 19% Floating
70 Banks 49%
56%
60

50

40
HK$
30 66% Fixed
Bonds
51%
20 44% 1

10

0
Type of Facilities Currency Interest Rate

2018 Results 50