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Presentation

4th March 2016

2015 Results

2015 Results1

2015 Review

• Sound result in 2015

• Continued strong performance from commercial portfolio

• Entry into Shanghai with prime mixed-use site

• Stable asset values

2015 Results2

2015 Results Highlights

2014 2015

US$930m Underlying profit attributable to shareholders US$905m

US$397m Non-trading items US$1,107m

US$1,327m Profit attributable to shareholders US$2,012m

US¢39.52 Underlying earnings per share US¢ 38.44

US¢56.42 Earnings per share US¢ 85.50

US$11.71 NAV per share US$12.19

US¢13.00 Final dividend per share US¢ 13.00

US¢19.00 Total dividend per share US¢ 19.00

2015 Results3

Commercial Property

2015 Results4

Commercial Portfolio (‘000 sq. ft NFA)

HKL’s Share Office Retail Hotel Total

Hong Kong 4,140 588 143 4,871

Macau - 93 151 244

Singapore 1,649 134 - 1,783

Jakarta 662 65 - 727

Hanoi 106 11 - 117

Bangkok 27 60 - 87

Others 71 - 312 383

TOTAL 6,655 951 606 8,212

2015 Results5

Hong Kong

1. One Exchange Square

2. Two Exchange Square

3. Three Exchange Square

4. The Forum

5. Jardine House

6. Chater House

7. Alexandra House

8. Gloucester Tower

9. Edinburgh Tower

9a. The Landmark Mandarin Oriental

10. York House

11. Landmark Atrium

12. Prince’s Building

12

5

1 2

3

6

89

710

4

119a

2015 Results6

Hong Kong Central Grade “A” Office Rental Index

80

100

120

140

160

180

2011 2012 2013 2014 2015

Index

Source: Jones Lang LaSalle

2015 Results7

Hong Kong Central Grade “A” Office Market

-0.5

0

0.5

1

1.5

2

2.5

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

Vacancy %m sq. ftNew supply Net take up Vacancy

0

3

6

9

12

15

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


2015 Results

-2

0

2

4

6

8

10

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

Vacancy %m sq. ftNew supply Net take up Vacancy

8

Hong Kong Grade “A” Office Market

0

3

6

9

12

15



2015 Results9

Hongkong Land Central Portfolio: Office

2013 2014 2015

Average Net Rent (HK$ psf/month) 99 102 101

Year-end Vacancy 5.0% 5.4% 3.4%

Weighted Average Lease Expiry (years) 3.6 3.4 4.1

2015 Results10

Hong Kong: Office Tenant Profile

Banks and other financial

services39%

Legal31%

Accounting8%

Governments1%

Trading2%

Property5%

Others14%

2015 Results11

Hong Kong: Expiration and Interim Rent Revisions

2016 2017 2018

Total lettable office area subject toexpiration/rent revisions (‘000 sq. ft)

783 1,456 1,267

% of area subject to expiration/rent revisions 19% 35% 31%

Average expiring net rent (HK$ psf/month) 104 104 100

2015 Results12

Hongkong Land Central Portfolio: Retail

2013 2014 2015

Average Net Rent (HK$ psf/month) 201 214 221

Year-end Vacancy 0% 0% 0%


Note: Vacancy excludes areas under renovation.

2015 Results

Singapore

One Raffles Link(100%-owned)

Marina Bay Financial Centre(33%-owned)

One Raffles Quay(33%-owned)

13

2015 Results

-1

0

1

2

3

4

5

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

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

14

Singapore CBD Grade “A” Office Market

CBD – Raffles Place, Shenton Way, Marina Bay & Marina Centre

0

3

6

12

15

9



2015 Results15

Office Retail Total HKL’s Share

One Raffles Link 239 73 312 312

One Raffles Quay 1,327 4 1,331 444

Marina Bay Financial Centre 2,904 179 3,083 1,027

TOTAL 4,470 256 4,726 1,783

Singapore Commercial Portfolio (‘000 sq. ft NFA)

2015 Results16

Singapore: Office Tenant Profile

Banks and other financial

services74%

Legal6%

Accounting3%

Natural resources

8%

Others9%

2015 Results17

Singapore: Office Average Rents and Vacancies

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

2013 2014 2015

Average Gross Rent (S$ psf/month) 9.1 9.2 9.5

Year-end Vacancy 1.7% 1.7% 3.0%


2015 Results18

Singapore: Expiration and Interim Rent Revisions

2016 2017 2018

HKL’s Share: Total lettable office area subject to expiration/rent revisions (‘000 sq. ft)

187 227 760

% of area subject to expiration/rent revisions 11% 14% 46%

Average expiring rent (S$ psf/month) 11.4 9.0 9.1

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

2015 Results19

• Existing portfolio features 135,000 sq. m.

• Average gross rent: US$25.3 psm per month(2014: US$24.0 psm per month)

• Occupancy: 93%

• WTC 3: Basement concrete works have been substantially completed (Completion: 2018)

Jakarta

Jakarta Land (50%-owned)WTC 3

2015 Results

Phnom Penh

20

EXCHANGE SQUARE (100%-owned)

• Mixed-use complex of 30,000 sq. m.

• Heart of Phnom Penh

• Completion: late 2016

2015 Results21

• Prestigious retail centre, which includes an exclusive luxury hotel

• 43,000 sq. m. lettable retail area

• Open: 1H 2017

Beijing

WF CENTRAL (90%-owned)

2015 Results22

Residential Property

2015 Results23

Mainland China – Completed Projects, Beijing

Project Project Type

Maple Place (90%)

• 22 units handed over in 2015

• 39 units available for future sale, mostly leased

Central Park (40%) • 72 units of serviced apartments

Maple Place

Central Park

2015 Results24

Mainland China – Development Projects Summary

HKL’s Share

Project InterestYear of

AcquisitionSite Area

(ha)

DevelopableArea

(m sq. m.)

Constructed(m sq. m.)

Under Construction

(m sq. m.)

Yorkville South, Chongqing 100% 2010 39 0.88 0.28 0.27

Yorkville North, Chongqing 100% 2011 54 1.09 0.21 0.20

Bamboo Grove, Chongqing 50% 2005 39 0.73 0.63 0.09

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

Landmark Riverside, Chongqing 50% 2009 11 0.50 0.13 0.17

Central Avenue, Chongqing 50% 2013 20 0.55 - 0.07

WE City, Chengdu 50% 2010 10 0.45 0.12 0.08

Parkville, Shanghai 50% 2015 4 0.11 - 0.05

Shenyang Projects 50% 2007 34 0.65 0.04 -

TOTAL 228 5.28 1.41 0.93

2015 Results25

• Site area: 87,180 sq. m.

• 227,000 sq. m. GFA

• Residential and commercial

• Completion: 2018

Mainland China – Parkville, Shanghai

Yangjing, Pudong District (50%-owned)

2015 Results26

• Adjacent to Bamboo Grove

• Site area: 348,000 sq. m.

• 640,000 sq. m. GFA

• Primarily residential


Mainland China – New Bamboo Grove, Chongqing

Dazhulin Area (50%-owned)

CentralDowntown

Jiangbeizui CBD

JiefangbeiCBD

Landmark Riverside

Yorkville South

Yorkville North

Project

Chongqing Airport

Chongqing Int’lExhibition Centre

ChongqingCentral Park

Central Avenue

Background image from Google Earth

Bamboo

Grove

2015 Results27

Mainland China – Revenue Recognised

US$m

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

$451m

$621m

$505m

0

100

200

300

400

500

600

700

800

900

2013 2014 2015

Chongqing Chengdu Shenyang Beijing

2015 Results28

Mainland China – Contracted Sales

$635m$632m

$802m

0

100

200

300

400

500

600

700

800

900

2013 2014 2015

Chongqing Chengdu Shanghai Shenyang Beijing

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

US$m

2015 Results29

Mainland China – Contracted Sales

• At 31st December 2015, US$821m (2014: US$533m) in sold but unrecognised contracted sales

• Some 70% of contracted sales scheduled to be recognised in 2016

2015 Results30

Singapore

Hallmark Residences

J Gateway

Ripple BayLakeVille

Marina Bay Suites

Sol AcresPalms @ Sixth Avenue

Jurong West

2015 Results31

• Final 18 units sold

Singapore – Completed Project

Marina Bay Suites (33%-owned)

2015 Results32

Singapore – Completions in 2015

Project UnitsGFA

(‘000 sq. ft)Sold

Palms @ Sixth Avenue 32 109 100%

Ripple Bay 679 672 100%

Hallmark Residences 75 110 97%

2015 Results33

Singapore – Projects for Completion from 2016

Project UnitsGFA

(‘000 sq. ft)Estimated

Completion DatePre-Sold

J Gateway 738 576 2016 100%

LakeVille 699 741 2017 81%

Sol Acres(previously known as Choa Chu Kang Grove)

1,327 1,364 2018 25%

Jurong West 710 537 2019Not yet

launched

TOTAL 3,474 3,218

2015 Results34

• JV with PT Bumi Serpong Damai

• Site area: 67 ha

• Southwest of central Jakarta

• 377 units launched for sale; 70% pre-sold

• Completion of Lancewood: 2016

Indonesia

Nava Park, Greater Jakarta (49%-owned)

2015 Results35

• JV with Astra International

• 509 luxury apartments; 90% pre-sold


Indonesia

Anandamaya Residences (40%-owned)

2015 Results36

• JV with Ayala Land

• 182 units; 91% pre-sold


Philippines

Two Roxas Triangle (40%-owned)

2015 Results37

• JV with Taft Property

• Site area: 20 ha

• 1.2 million sq. m. GFA

• Residential and commercial

Philippines

Mandani Bay (40%-owned)

2015 Results38

Financial Results

2015 Results39

Consolidated Profit and Loss Account (US$m)

2014 2015

1,876 Revenue 1,932

(809) Net operating costs (938)

1,067 Operating profit 994

123 Share of results of joint ventures 141

(69) Net financing charges (74)

(187) Tax (151)

(4) Non-controlling interests (5)

930 Underlying profit 905

397 Non-trading items 1,107

1,327 Profit attributable to shareholders 2,012

2015 Results40

Revenue (US$m)

2014 2015

961 Commercial revenue 973

915 Residential revenue 959

1,876 Total 1,932

2015 Results41

Underlying Profit by Business (US$m)

2014 2015

953 Commercial property 942

398 Residential property 354

(62) Corporate expenses (62)

1,289 1,234

(103) Net financing charges (107)

(247) Tax (209)

(9) Non-controlling interests (13)

930 Underlying profit 905

2015 Results42

Commercial Property Underlying Profit (US$m)

2014 2015

Greater China

772 - Hong Kong 778

29 - Mainland China & Macau 21

Southeast Asia & Others

130 - Singapore 121

22 - Others 22

953 Total 942

2015 Results43

Residential Property Underlying Profit (US$m)

2014 2015

Greater China

69 - Hong Kong 55

179 - Mainland China & Macau 173


149 - Singapore 127

1 - Others (1)

398 Total 354

2015 Results44

Consolidated Cash Flow (US$m)

2014 2015

699 Operating activities 896

88 Investing activities (146)

(426) Financing activities (449)

7 Others 15

368 Decrease in net debt 316

(3,025) Net debt at beginning of year (2,657)

(2,657) Net debt at end of year (2,341)

2015 Results45

Operating Activities (US$m)

2014 2015

1,067 Operating profit excluding non-trading items 994

(81) Net interest paid (78)

(134) Tax paid (175)

(429) Payments for residential sites (281)

(454) Development expenditure on residential projects (407)

962 Proceeds from residential sales 1,079

153 Dividends received from joint ventures 117

(385) Others (353)

699 896

2015 Results46

Investing Activities (US$m)

2014 2015

(38) Major renovations capex (58)

(216) Funding of joint ventures (256)

479 Advances and loan repayments from joint ventures 391

(137) Development expenditure (152)

- Payment of deposit for a joint venture (71)

88 (146)

2015 Results47

Consolidated Cash Flow (US$m)

2014 2015

699 Operating activities 896

88 Investing activities (146)

Financing activities

(421) - Dividends paid by the Company (445)

(5) - Dividends paid to minority shareholders (4)

(426) (449)

7 Others 15

368 Decrease in net debt 316

(3,025) Net debt at beginning of year (2,657)

(2,657) Net debt at end of year (2,341)

2015 Results48

Consolidated Balance Sheet (US$m)

2014 2015

Investment properties

23,697 - Subsidiaries 24,957

4,474 - Joint ventures 4,296

28,171 29,253

Properties held for sale

2,923 - Subsidiaries 2,714

1,372 - Joint ventures 1,771

4,295 4,485

(2,211) Others (2,677)

30,255 Gross assets (excluding cash) 31,061

Financed by:

27,598 - Total equity 28,720

2,657 - Net debt 2,341

30,255 31,061

2015 Results49

Investment Property – Basis of Valuation

Capitalisation Rates 2014 1H 2015 2015

Hong Kong Office - Exchange Square 1 & 2 4.00% 4.00% 3.75%

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

Singapore Office - MBFC 3.75% 3.75% 3.75%

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

2015 Results50

Investment Property – Carrying Values (US$m)

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

2014 2015

Greater China

22,336 - Hong Kong 23,671

1,650 - Mainland China & Macau 1,532


3,628 - Singapore 3,428

557 - Others 622

28,171 Total 29,253

2015 Results51

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

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

2014 2015

Greater China

23 - Hong Kong 18

2,435 - Mainland China & Macau 2,766


1,696 - Singapore 1,528

141 - Others 173

4,295 4,485

(941) Pre-sale proceeds (1,187)

3,354 Net investment 3,298

2015 Results52

Gross Assets at 31st Dec 2015

Commercial 90%

Residential 10%

By Activity

Hong Kong 75%

Mainland China and Macau 11%

Southeast Asia 14%

By Location

2015 Results53

Treasury Management

Summary 2014 2015

Net debt (US$m) 2,657 2,341

Gearing 10% 8%

Average tenor of debt (years) 7.3 7.2

Average interest cost 2.9% 3.3%

Credit ratings

- S & P

- Moody’s

A

A3

A

A3

2015 Results54

$570m $666m

$1,104m$882m

$298m

$2,931m

0

500

1,000

1,500

2,000

2,500

3,000

2016 2017 2018 2019 2020 2021+

Bank Facilities (Drawn & Undrawn) BondsUS$m

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

*

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

2015 Results55

Liquidity at 31st Dec 2015 (US$bn)

2014 HK$1

S$2

US$ RMB Total

7.2 Committed lines 4.7 1.2 - 0.5 6.4

4.3 Gross debt 3.2 0.5 - 0.2 3.9

2.9 Available lines 1.5 0.7 - 0.3 2.5

1.6 Cash - 0.2 0.5 0.9 1.6

4.5 Available liquidity 1.5 0.9 0.5 1.2 4.1

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

2015 Results56

Outlook

• Solid trading profits from operations are expected to continue in 2016

• Anticipated higher contribution from mainland China

• Underlying earnings in 2016 are anticipated to be lower overall

• The Group continues to seek opportunities to develop premiumcommercial and residential projects in Greater China and Southeast Asia

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