Presentation

3rd March 2017

2016 Results

2016 Results 1

2016 Review

• Underlying profit down 6%

• Continued strong contribution from commercial portfolio

• Steady residential contribution from mainland China and Singapore

• Net assets per share up 9% on higher capital values

2016 Results 2

2016 Results Highlights

2015 2016

US$905m Underlying profit attributable to shareholders US$848m

US$1,107m Non-trading items US$2,498m

US$2,012m Profit attributable to shareholders US$3,346m

US¢38.44 Underlying earnings per share US¢36.03

US¢85.50 Earnings per share US¢142.23

US$12.19 NAV per share US$13.30

US¢13.00 Final dividend per share US¢13.00

US¢19.00 Total dividend per share US¢19.00

2016 Results 3

Commercial Property

2016 Results 4

Commercial Portfolio (’000 sq. ft NFA)

HKL’s Share Office Retail Hotel Total

Hong Kong 4,139 572 143 4,854

Macau - 93 151 244

Singapore 1,652 129 - 1,781

Jakarta 664 64 - 728

Hanoi 106 11 - 117

Bangkok 27 61 - 88

Others 71 - 312 383

TOTAL 6,659 930 606 8,195

2016 Results 5

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

8 9

7 10

4

11 9a

2016 Results 6

Hong Kong Central Grade “A” Office Rental Index

Source: Jones Lang LaSalle

80

100

120

140

160

180

2012 2013 2014 2015 2016

Index

2016 Results

-0.5

0

0.5

1

1.5

2

2.5

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

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

7

Hong Kong Central Grade “A” Office Market

0

3

6

9

12

15

Source: Jones Lang LaSalle

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

2016 Results 8

Hong Kong Grade “A” Office Market

0

3

6

9

12

15

-2

0

2

4

6

8

10

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

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

Source: Jones Lang LaSalle

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

2016 Results 9

Hongkong Land Central Portfolio: Office

2014 2015 2016

Average Net Rent (HK$ psf/month) 102 101 103

Year-end Vacancy 5.4% 3.4% 2.2%

Weighted Average Lease Expiry (years) 3.4 4.1 3.8

2016 Results 10

Hong Kong: Office Tenant Profile

Banks and other financial

services 39%

Legal 30%

Accounting 8%

Governments 1%

Trading 2%

Property 6%

Others 14%

2016 Results 11

Hong Kong: Expiration and Interim Rent Revisions

2017 2018 2019

Total lettable office area subject to expiration/rent revisions (’000 sq. ft)

1,322 1,330 1,020

% of area subject to expiration/rent revisions 32% 32% 25%

- Expiration 11% 19% 20%

- Rent revisions 21% 13% 5%

Average expiring net rent (HK$ psf/month) 101.7 103.2 112.8

2016 Results 12

Hongkong Land Central Portfolio: Retail

Note: Vacancy excludes areas under renovation.

2014 2015 2016

Average Net Rent (HK$ psf/month) 214 221 218

Year-end Vacancy 0% 0% 0%

Weighted Average Lease Expiry (years) 2.8 2.4 2.8

2016 Results

Singapore

One Raffles Link (100%-owned)

Marina Bay Financial Centre (33%-owned)

One Raffles Quay (33%-owned)

13

2016 Results 14

Singapore CBD Grade “A” Office Market

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

0

3

6

12

15

9

Source: Jones Lang LaSalle

-1

0

1

2

3

4

5

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

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

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

2016 Results 15

Office Retail Total HKL’s Share

One Raffles Link 243 68 311 311

One Raffles Quay 1,327 4 1,331 444

Marina Bay Financial Centre 2,900 179 3,079 1,026

TOTAL 4,470 251 4,721 1,781

Singapore Commercial Portfolio (’000 sq. ft NFA)

2016 Results 16

Singapore: Office Tenant Profile

Banks and other financial

services 73%

Legal 6%

Accounting 3%

Natural resources

7%

Others 11%

2016 Results 17

Singapore: Office Average Rents and Vacancy

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

2014 2015 2016

Average Gross Rent (S$ psf/month) 9.2 9.5 9.3

Year-end Vacancy 1.7% 3.0% 0.1%

Weighted Average Lease Expiry (years) 5.5 5.1 4.8

2016 Results 18

Singapore: Expiration and Interim Rent Revisions

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

2017 2018 2019

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

130 719 320

% of area subject to expiration/rent revisions 7.8% 43.5% 19.3%

- Expiration 4.4% 5.8% 12.0%

- Rent revisions 3.4% 37.7% 7.3%

Average expiring rent (S$ psf/month) 8.9 9.0 9.8

2016 Results 19

• Existing portfolio features 135,000 sq. m. NFA

• Average gross rent: US$25.3 psm per month (2015: US$25.3 psm per month)

• Occupancy: 90%

• WTC 3: Construction has progressed to Level 39 (Completion: 2018)

Jakarta

Jakarta Land (50%-owned)

WTC 3

2016 Results

Phnom Penh

20

EXCHANGE SQUARE (100%-owned)

• Mixed-use complex with 30,000 sq. m. NFA

• Heart of Phnom Penh

• Tenant handover commenced: December 2016

2016 Results 21

• Prestigious retail centre, which includes an exclusive luxury hotel

• 43,000 sq. m. NFA

• Open: Q4 2017

Beijing

WF CENTRAL (84%-owned)

22 2016 Results

Residential Property

2016 Results 23

Mainland China – Completed Projects, Beijing

Project Project Type

Maple Place (90%) • 31 units handed over in 2016

• 2 units available for future sale

Central Park (40%) • 72 apartments

Maple Place

Central Park

2016 Results 24

Mainland China – Development Projects Summary

HKL’s Share

Project Interest Year of

Acquisition Site Area

(ha)

Developable Area

(m sq. m.)

Constructed (m sq. m.)

Under Construction

(m sq. m.)

Yorkville South, Chongqing 100% 2010 39 0.88 0.51 0.16

Yorkville North, Chongqing 100% 2011 54 1.09 0.34 0.07

Bamboo Grove, Chongqing 50% 2005 39 0.73 0.64 0.09

New Bamboo Grove, Chongqing 50% 2015 17 0.32 - 0.18

Landmark Riverside, Chongqing 50% 2009 11 0.50 0.15 0.15

Central Avenue, Chongqing 50% 2013 20 0.55 0.03 0.15

WE City, Chengdu 50% 2010 10 0.45 0.15 0.09

Parkville, Shanghai 50% 2015 4 0.11 - 0.11

TOTAL 194 4.63 1.82 1.00

2016 Results 25

Mainland China – Revenue Recognised

US$m

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

$621m

$505m

$676m

0

200

400

600

800

2014 2015 2016

Chongqing Chengdu Beijing

2016 Results 26

Mainland China – Contracted Sales

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

$635m

$802m

$1,105m

0

200

400

600

800

1,000

1,200

2014 2015 2016

Chongqing Chengdu Shanghai Beijing US$m

2016 Results 27

Mainland China – Sold but Unrecognised Sales

$533m

$821m

$1,083m

0

200

400

600

800

1,000

1,200

2014 2015 2016

Sales to be recognised next year Sales to be recognised after next year US$m

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

2016 Results 28

Singapore

Margaret Drive

LakeVille

Sol Acres

Lake Grande

J Gateway

2016 Results 29

Singapore – Projects for Completion from 2017

Project Units GFA

(’000 sq. ft) Estimated

Completion Date Pre-Sold

LakeVille 699 674 2017 99%

Sol Acres 1,327 1,240 2018 44%

Lake Grande 710 537 2019 77%

Margaret Drive 316 238 2020 Not yet

launched

TOTAL 3,052 2,689

2016 Results 30

Units GFA

(’000 sq. m.)

Estimated Completion

Date

% of Construction

No. of Units

Launched

Pre-Sold % of Units Launched

Under development

Villas and Landed Housing

- Lancewood 223 61 2017 96% 223 88%

- Lakewood 130 46 2018 2% 45 36%

Mid-rise Apartments

- Marigold 589 56 2020 18% 203 84%

Sub-total 942 162

Undeveloped 640 2029

Total 802

Nava Park, Greater Jakarta (49%-owned)

Indonesia

2016 Results 31

• JV with Astra International

• Site area: 1.6 ha

• GFA: 116,000 sq. m.

• 509 luxury apartments; 92% pre-sold

• Completion: 2018

Indonesia

Anandamaya Residences (40%-owned)

2016 Results 32

• 50:50 JV between Modernland and Astra Land, of which HKL holds 50%

• Site area: 69 ha

• GFA: 940,000 sq. m.

• East of central Jakarta

• Construction start: 2017

Indonesia

Jakarta Garden City (25%-owned)

Jakarta Garden City

Background image from Google Earth

2016 Results 33

• JV with Ayala Land

• Site area: 0.5 ha

• GFA: 98,000 sq. m.

• 182 units; 99% pre-sold

• Completion: 2018

Philippines

Two Roxas Triangle (40%-owned)

2016 Results 34

• JV with Taft Property

• Site area: 20 ha

• GFA: 1.2 million sq. m.

• Residential and commercial

• Phase One: 1,226 units, 43% pre-sold

• Completion: 2035

Philippines

Mandani Bay (40%-owned)

2016 Results 35

• JV with Singha Estate

• Site area: 0.4 ha

• GFA: 38,000 sq. m.

• High-rise luxury condominium

• 374 units

• Construction start: Early 2018

Thailand

S36, Bangkok (49%-owned)

36 2016 Results

Financial Results

2016 Results 37

Consolidated Profit and Loss Account (US$m)

2015 2016

1,932 Revenue 1,994

(938) Net operating costs (1,023)

994 Operating profit 971

141 Share of results of joint ventures 117

(74) Net financing charges (69)

(151) Tax (168)

(5) Non-controlling interests (3)

905 Underlying profit 848

1,107 Non-trading items 2,498

2,012 Profit attributable to shareholders 3,346

2016 Results 38

Revenue (US$m)

2015 2016

973 Commercial revenue 986

959 Residential revenue 1,008

1,932 Total 1,994

2016 Results 39

Underlying Profit by Business (US$m)

2015 2016

940 Commercial property 946

354 Residential property 293

(60) Corporate expenses (62)

1,234 1,177

(107) Net financing charges (102)

(209) Tax (214)

(13) Non-controlling interests (13)

905 Underlying profit 848

2016 Results 40

Commercial Property Underlying Profit (US$m)

2015 2016

Greater China

784 - Hong Kong 794

16 - Mainland China & Macau 11

Southeast Asia & Others

118 - Singapore 120

22 - Others 21

940 Total 946

2016 Results 41

Residential Property Underlying Profit (US$m)

2015 2016

Greater China

57 - Hong Kong -

171 - Mainland China & Macau 170

Southeast Asia & Others

127 - Singapore 120

(1) - Others 3

354 Total 293

2016 Results 42

Consolidated Cash Flow (US$m)

2015 2016

896 Operating activities 1,096

(146) Investing activities (245)

(796) Financing activities (442)

(46) Net cash inflow/(outflow) 409

1,659 Cash and cash equivalents at beginning of year 1,566

(47) Effect of exchange rate changes (77)

1,566 Cash and cash equivalents at end of year 1,898

(3,906) Gross debt (excluding bank overdrafts) (3,906)

(2,341) Net debt at end of year (2,008)

2016 Results 43

Operating Activities (US$m)

2015 2016

994 Operating profit excluding non-trading items 971

(78) Net interest paid (75)

(175) Tax paid (141)

(281) Payments for residential sites (79)

(407) Development expenditure on residential projects (336)

1,079 Proceeds from residential sales 953

117 Dividends received from joint ventures 88

(353) Others (285)

896 1,096

2016 Results 44

Investing Activities (US$m)

2015 2016

(58) Major renovations capex (92)

(256) Funding of joint ventures (104)

391 Advances and loan repayments from joint ventures 103

(152) Development expenditure (148)

(71) Payment of deposit for a joint venture (4)

(146) (245)

2016 Results 45

Financing Activities (US$m)

2015 2016

(445) Dividends paid by the Company (444)

(4) Dividends paid to minority shareholders (4)

(347) Net drawdown/(repayment) of borrowings 26

- Change in interests in subsidiaries (20)

(796) (442)

2016 Results 46

Consolidated Balance Sheet (US$m)

2015 2016

Investment properties

24,957 - Subsidiaries 27,712

4,296 - Joint ventures 4,180

29,253 31,892

Properties held for sale

2,714 - Subsidiaries 2,218

1,771 - Joint ventures 1,835

4,485 4,053

(2,677) Others (2,623)

31,061 Gross assets (excluding cash) 33,322

Financed by:

28,720 - Total equity 31,314

2,341 - Net debt 2,008

31,061 33,322

2016 Results 47

Investment Property – Basis of Valuation

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

Capitalisation Rates 2015 1H 2016 2016

Hong Kong Office - Exchange Square 1 & 2 3.75% 3.60% 3.50%

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

Singapore Office - MBFC 3.75% 3.50% 3.50%

2016 Results 48

Investment Property – Carrying Values (US$m)

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

2015 2016

Greater China

23,671 - Hong Kong 26,381

1,532 - Mainland China & Macau 1,513

Southeast Asia & Others

3,428 - Singapore 3,351

622 - Others 647

29,253 Total 31,892

2016 Results 49

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

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

2015 2016

Greater China

18 - Hong Kong 18

2,766 - Mainland China & Macau 2,570

Southeast Asia & Others

1,528 - Singapore 1,250

173 - Others 215

4,485 4,053

(1,187) Pre-sale proceeds (1,637)

3,298 Net investment 2,416

2016 Results 50

Gross Assets at 31st Dec 2016

Commercial 91%

Residential 9%

By Activity

Hong Kong 78%

Mainland China and Macau 9%

Southeast Asia 13%

By Location

2016 Results 51

Treasury Management

Summary 2015 2016

Net debt (US$m) 2,341 2,008

Gearing 8% 6%

Average tenor of debt (years) 7.2 6.4

Average interest cost 3.3% 3.4%

Credit ratings

- S & P

- Moody’s

A

A3

A

A3

2016 Results 52

$663m

$1,086m $882m

$294m

$756m

$2,836m

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2017 2018 2019 2020 2021 2022+

Bank Facilities (Drawn & Undrawn) Bonds US$m

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

*

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

2016 Results 53

Liquidity at 31st Dec 2016 (All figures in US$bn)

2015 HK$1

S$2

US$ RMB Total

6.4 Committed lines 4.7 1.4 - 0.4 6.5

3.9 Gross debt 3.3 0.4 - 0.2 3.9

2.5 Available lines 1.4 1.0 - 0.2 2.6

1.6 Cash - 0.2 0.7 1.0 1.9

4.1 Available liquidity 1.4 1.2 0.7 1.2 4.5

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

2016 Results 54

Outlook

• Stable performance from commercial property portfolio

• Higher contribution in our residential business from mainland China, offset by lower profits from Singapore

• Continue to seek expansion opportunities in mainland China and Southeast Asia

Hongkong Land

www.hkland.com

Thank you