Pandemic Left Economies Stranded · •Sales Tempo Starts to Resume in 2Q •Impact from ASP Control Continues 1H20 Contracted Sales Sales RMB 8.1B +24% GFA 241,500 s.m +26% ASP RMB

The Wharf (Holdings) Limited 1H20 Interim Results 1

The Wharf (Holdings) Limited

1H20 Interim Results

3 Aug 2020

Pandemic Left

Economies Stranded

The Wharf (Holdings) Limited 1H20 Interim Results 2 The Wharf (Holdings) Limited 1H20 Interim Results 2

Highlights

• Port Activities Slowed with no Recovery in Sight Yet

• 1Q was a Washout; ML Recovery Only Started in 2Q

•MLDP Sales & Recognition were Stalled

• $2.9B HKDP Provision Put Group UNP into Loss

•MLIP Growth Momentum was Disrupted

•Hotel Occupancy Plummeted as Travelers Stayed Home


Financial Highlights

• MLDP Dominated YoY Revenue & OP Decline

• HKDP Provision ($2.9B) Broke the Back of UNP

• IP Revaluation Deficit ($0.6B) Modest

• IP Valuation $73.2B; Properties for Sale $40.7B

HKD Million 1H20 1H19

Group Revenue 5,551 8,064

Operating Profit 2,517 3,701

Underlying Net (Loss) / Profit (UNP)* (1,132) 2,236

(Loss)/ Profit Attributable to Equity

Shareholders (1,741) 2,450

(Loss)/ Earnings Per Share (HK$)

- Attributable to Equity Shareholders

- Underlying*

(0.57)

(0.37)

0.80

0.73

Dividend Per Share (HK$) 0.20 0.25

*Underlying Net (Loss)/Profit – Excl. IP Revaluation Surplus/(Loss) & Exceptional Items


Logistics 9%

Others 1%

Asset Mix: Property-Centric

Properties

90%

Total Assets

(Ex-Cash & Investments)

$176B

Mainland China

71%

HK 29%


Overview

Recurring Income

Asset Turns

Financial Management


MLIP - Brisk Post-outbreak Recovery

• 2Q Tenant Sales Rebound from Effective Sales-

driving Initiatives

• Sales Growth in May & Jun Driven by Luxury

Segment

• Tenant Support Measures Amidst Pandemic Hit

• Revenue Growth Streak Disrupted by Pandemic

1.9

2.0

1.6

1.2

1.2

1.9

1.8

1.4

1.2

3.9

3.4

2.6

2.4

2020

2019

2018

2017

2016

Mainland IP Revenue (HKD billion)

1H 2H


CDIFS – Testing First Half

• Outstanding Mkt Position Soften Pandemic Blow

• Double-digit Sales Growth in May & Jun

• Double-digit Retail Rental Reversion

• Office Among the City’s Highest Rental Rates &

83% Occupied

1H20 CDIFS Mall

Net Revenue (Net of Tax) -7%

Retail Sales -11%

Occupancy Cost* 14%

* Incl. Impact on Rental Income Due to COVID-19

Occupancy Cost = Retail Rental/ Retail Sales

The Wharf (Holdings) Limited 1H20 Interim Results 8 8 The Wharf (Holdings) Limited 1H20 Interim Results 8

• Positive Sales Growth & Close to Full Occupancy

– Despite Mandatory Mall Closure for 11 days

Shortly after CNY

• Record-breaking Sales in May

• Office Occupancy Grew Noticeably

1H20 CSIFS Mall

Net Revenue (Net of Tax) +3%

Retail Sales +6%

Occupancy Cost* 11%

* Incl. Impact on Rental Income Due to COVID-19

Occupancy Cost = Retail Rental/ Retail Sales

CSIFS – Testing First Half


Wharf Hotels – Sector in Stress

• Travels were Sharply Curtailed, particularly

Cross-border

• Proactive Plan Against Pandemic

– Health & Safety Initiatives

– Cost Containment Measures

– Concurrently Preparing for Borders Reopening &

Travel Resumption

Since 2015 Since 1970s

Award-winning,

Contemporary Chic Business Travel Brand

4 Owned & Managed

in HK & Mainland

13 Owned & Managed

in HK, Mainland &

the Philippines


Niccolo – New Brand, New Frontiers

• Revenue Yield Per Room Leads Markets

• Rewarding GOP Promptly Achieved Post-Opening

• Niccolo Suzhou to Open in 1H21

RGI vs. Competitive Set

Chengdu* Chongqing* Changsha*

Rank 1st 2nd 1st

RGI# 225 148 203

YoY Chg +20 +29 +93

* Opening Date: Chengdu Apr-15, Chongqing Sep-17, Changsha Oct-18 # RGI (Revenue Generating Index) is an Index of RevPARs of All Hotels in the Same

Competitive Set. RGI of 225 Means Outperforming the Comp Set Avg. (of 100) by 125%


Logistics – More Challenges Than Ever

• Cargo Flow Still Hurting from COVID-19

• MTL HK Throughput -5%

• Macro Challenges & Regional Competition

• HK Seaport Alliance (Since 1 Apr 2019)

– Rebuilding HK Port Competitiveness

Modern Terminals (1H20)

Revenue $1,196M (-4%) Operating Profit $190M (-13%)

Throughput (million TEUs)

HK 2.4 -5%

DCB# 0.6* -11%

SCT# 2.5* -12%

Total 5.5 -8%

Hong Kong Air Cargo Terminals Ltd (HACTL)^

Total Throughput 0.7M Tonnes (+1%)

* Total Throughput (Instead of Attributable)

Market Throughput: Kwai Tsing -5%; Shenzhen -14% # DCB: 65%-owned; SCT: 20%-owned; HACTL: 20.8%-owned


Overview

Recurring Income

Asset Turns



MLDP – Pandemic Disruption

• Distorted Timing of Schedule from Muted

Activities in 1Q

• Sales Tempo Starts to Resume in 2Q

• Impact from ASP Control Continues

1H20 Contracted Sales

Sales RMB 8.1B +24%

GFA 241,500 s.m +26%

ASP RMB 32,800 psm +4%

2020 Sales Target

2020 Sales Target RMB 15B

Sellable Resources 1.3M s.m


MLDP – Increase in Net Order Book

• Net Order Book RMB31.4B or 1.0M s.m

• 2020 Target Completion 1.2M s.m

1H20 Operating Matrix

Revenue $4,275M -18%

Operating Profit $1,172M -36%

Operating Margin 27% -8 ppts

Completed GFA 133,800 s.m +28%

Recognized GFA 182,600 s.m +74%


MLDP – Prudent & Selective Landbanking

• Mainland DP Landbank: 3.3M s.m

– No Land Purchase in 1H20

• Selective Strategy to Sustain Quality & Return

• Key Cities in Hangzhou, Beijing, Shanghai,

Suzhou

Shanghai

Suzhou

Hangzhou

Beijing


HK Properties – Quality Landbank

• HK Landbank* 3.3M s.f

• Luxury & Scarcity

– Peak Portfolio & Kowloon Tong Project #

• CBD2 Potentials

– Kowloon East Portfolio

Kowloon Tong Portfolio 13%

Kowloon East Portfolio 62%

Peak Portfolio 8%

Others 17%

* Incl. IPs in HK # Impairment provision made as a matter of prudence

Total Attributable GFA* 3.3M s.f


Mount Nicholson – Most Valuable in Asia

• About 80% Houses & Apartments Sold

– Record-breaking Prices in the Region

• Attributable Operating Profit $286M

• 1 House & 1 Apt to be Recognised in 2H20

1H20 Contracted Sales

1 Apartment $533M

($116,000 psf)

Accumulated Sales*

17 Houses $94,000 psf

37 Apartments $90,000 psf

Accumulated Sales $27.9B (Gross Basis)

*Mount Nicholson comprises 19 Houses & 48 Apartments


Overview

Recurring Income

Asset Turns



Prudent Financial Management

• Net Debt: $23.9B; Gearing: 16.7%

• Average Interest Cost: 3.4%

• Interest Cover: 3.8x

• Floating Rate Debt: 79%

6.4

8.1

5.4

15.8

1.2

5.3

2020/21

2021/22

2022/23

2023/24

2024/25

Jul 25 & After

Debt Maturity (HKD billion) (As at 30 Jun 2020)

Total: $42.2B

Jul - Jun


Outlook


Outlook

• Macro Parameters Ever More Testing

– All Eyes on COVID Vaccine & Recovery

– Massive QE & Fiscal Relief vs. Economic Contraction Around the World

– Paradigm Shift in Sino-US Relations & Unprecedented Tension

• Sound Balance Sheet & Prudent Financial Management


Sustainability


Key Sustainability Performance

• Constituent member of Hang Seng Corporate Sustainability Index

• Awarded 10 Years+ Caring Company Logo, CSR Index Plus, Social Capital Builder Logo Award

• Published the 6th standalone Sustainability Report in accordance with Core option of the GRI

Standards and HKEX ESG Reporting Guide

• Completed a preliminary climate risk mapping exercise with reference to the TCFD framework

• Aligned 11 of 17 UNSDGs


Data at a Glimpse

*Reporting scope covers operations as identified in WHL’s Sustainability Report 2019.

https://www.wharfholdings.com/en/sustainability/reports

Obtained green building

certification

LEED Platinum - Chengdu IFS,

- Changsha IFS

LEED Gold - Wuxi IFS,

- Shanghai Wheelock Square

Decreased

amount of air

emission by 18%

Increased average training

hours

2019: 28.5 (2018:25.5)

Decreased water consumption

for Modern Terminals

2019: 1.279 tonnes (2018: 1.568)

2019:71,303 m3

(2018: 74,134)

Total waste recycled

increased

2019: 5,757 tonnes (2018: 4,235)

0 work-related fatality

0% Occupational

disease rate

Lower absentee rate

2019:1.2% (2018: 1.3)

Participate in Wharf

Emergency Relief

Fund to provide instant

support to the needy

affected by COVID-19

Pandemic, including

- RMB10 million to

Red Cross Society of

China Hubei Branch

ISO 14001:2015 - Modern Terminals,

Chengdu IFS, Changsha IFS

ISO 45001:2015 - Chengdu IFS, Changsha IFS

ISO 9001:2015 - Chengdu IFS

Our Business Units are

partnering with 5 WeCan

school to provide support

68 partners;

76 schools of

70,000+ students

Approximately

8,400 talents


Appendix


Summary of HK Properties

Portfolio Usage Status Locations Attributable GFA (s.f.)

1. Peak Portfolio Residential Sales Mount Nicholson (50%-JV) 37,700

Lease Chelsea Court 43,000

Strawberry Hill 13,000

Redevelopment 1 Plantation Road 91,000

11 Plantation Road 46,300

77 Peak Road 42,200

Sub-total 273,200

2. Kowloon East Portfolio Commercial Sales Peninsula East 42,600

Industrial Redevelopment Kowloon Godown# 1,032,000

Residential Development Yau Tong Bay (15%-JV) 611,400

Kai Tak (30%-JV) 361,500

Sub-total 2,047,500

3. Non-Core Commercial Lease Cable TV Tower Units 566,000

4. Kowloon Tong Portfolio Residential Development Kowloon Tong 436,400

Total 3,323,100

As at 30 Jun 2020 ; # GFA of Existing Building


Mainland Contracted Sales Breakdown by City

Region City Contracted Sales (%) GFA Sold (%)

Eastern China Shanghai 5.5% 1.8%

Suzhou 33.2% 37.7%

Wuxi 2.9% 3.8%

Ningbo 0.1% -

Hangzhou 33.8% 23.7%

Eastern China Sub-Total: 75.5% 67.0%

Western China Chengdu 0.6% 0.5%

Chongqing 7.7% 12.8%

Western China Sub-Total 8.3% 13.3%

Southern China Foshan & Guangzhou 6.1% 15.0%

Others Beijing 9.4% 3.7%

Tianjin, Dalian & Wuhan 0.7% 1.0%

Southern & Others Sub-Total 16.2% 19.7%


3 Projects Launched in 1H20

Projects City

Attributable Proceeds (RMB M)

Attributable GFA sold (s.m)

Average Price (RMB psm)

Huangpu Street (Site 82) Suzhou 960 23,975 40,000

Yuan He Street (Site 77) Suzhou 534 18,594 28,700

Luxurious Mountain View Hangzhou 515 15,670 29,400


Mainland Key Projects on Sales in 1H20

Projects City Attributable Proceeds (RMB M)

Attributable GFA sold (s.m)

Average Price (RMB psm)

Ownership

Huangpu Street (Site 82) Suzhou 960 23,975 40,000 49%

Parc Grande Hangzhou 903 15,957 55,000 50%

Parc Royale Hangzhou 735 13,352 55,100 100%

International Community Chongqing 605 29,896 20,200 40%

One Liangma Beijing 543 5,710 95,100 30%

Yuan He Street (Site 77) Suzhou 534 18,594 28,700 100%

Luxurious Mountain View Hangzhou 515 15,670 29,400 100%

Guiyu Chaoyang Hangzhou 510 10,836 43,300 50%

Huayuan Road (Site 78) Suzhou 426 14,792 28,800 100%

Yangcheng Lake (Site 27) Suzhou 366 19,552 18,700 100%

One Jingan Shanghai 341 3,397 100,500 55%


Mainland DP Land Bank Breakdown by City

Region City GFA million (s.m) % Total

Eastern China Shanghai 0.1 2%

Suzhou 0.8 24%

Wuxi 0.0 1%

Hangzhou 0.6 17%

Eastern China Sub-Total: 1.5 44%

Western China Chengdu 0.8 24%

Chongqing 0.2 7%

Western China Sub-Total: 1.0 31%

Southern China Foshan & Guangzhou 0.3 8%

Others Beijing 0.1 5%

Changsha 0.4 12%

Southern & Others Sub-Total: 0.8 25%

Total: 3.3 100%


Mainland Key Properties Completion

Projects Attributable GFA (s.m)

Key Completion in 1H20

Chengdu Times Town (Site A) 70,500

Foshan Sunrise Coast 33,300

Suzhou Huangpu Street (Site 82) 30,100

Projected Key Completion in 2H20

Suzhou Yangcheng Lake (Site 27) 201,400

Chengdu Times City 111,200

Hangzhou Guiyu Chaoyang 98,000

Suzhou Huayuan Road (Site 78) 90,000

Hangzhou Qianjiang Development Area 68,100

Suzhou Yuanhe Road 60,100

Shanghai One Jingan 56,400


Mainland New Projects for Sales in 2H20

Projects City Ownership

Wuzhong Lot #24 Suzhou 100%

CSIFS T2 S.A. Changsha 100%


Mainland IP – Different Series

Times Square

Property Project Nature Total GFA *

(s.m.)

Year of

Completion

Times Square

Chongqing ** O/R 55,000 2004

Dalian** R 17,000 2008

Marco Polo Wuhan** H 38,000 2008

Shanghai IPs

Times Square R/O/S.A 90,000 1999

Wheelock Square O/R 111,000 2010

IFS & Times Outlets

Property Project Nature Total GFA *

(s.m.)

Year of

Completion

Mixed-use IFS Complexes

Chengdu R/O/S.A/ H 603,000 2013-2016

Chongqing** R/O/H 285,000 2017

Changsha R/H 287,000 2018

Wuxi O 189,000 2014

Times Outlets

Chengdu R 63,000 2009

Changsha R 72,000 2016

R = Retail; O = Office; S.A = Serviced Apartments; H = Hotel

* Total Development Area, Excl. Basement Area & Carpark

** Gross Area & Net of Recognized Sales


Wharf Hotels Management

Niccolo (Since 2015)

Hong Kong Mainland

The Murray, Hong Kong, a Niccolo

Hotel^

Niccolo Chengdu

Niccolo Changsha

Niccolo Chongqing#

Niccolo Suzhou (Opening in 2021)^

Marco Polo (Since 1986)

Hong Kong Mainland Philippines

Marco Polo Hongkong Hotel^

Gateway Hotel^

Prince Hotel^ (Under renovation since 24 Feb 2020)

Marco Polo Parkside, Beijing*

Marco Polo Shenzhen*

Marco Polo Wuhan

Marco Polo Xiamen*

Marco Polo Lingnan Tiandi, Foshan*

Marco Polo Changzhou^

Marco Polo Jinjiang*

Marco Polo Ortigas, Manila*

Marco Polo Plaza, Cebu*

Marco Polo Davao*

(Suspended operation since 15 Jun 2020)

^Owned by WREIC; #50%-owned; *Owned by Third Party


Overview of Application of Funds

Major Capital & Development Expenditure

HKD

1H20

(Actual)

2H20

(Projected)

Hong Kong Properties 0.3B 1.4B

Mainland China IP 0.0B 0.1B

Mainland China DP 3.2B 4.8B

Others 0.1B 0.5B

Total 3.6B 6.8B


Pandemic Left Economies Stranded

Thank you


End of Presentation The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK]

Disclaimer

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herein constitute Wharf’s judgment as of the date hereof and are subject to change

without notice. The Group, its subsidiaries and affiliates hereby disclaim (i) all express,

implied, and statutory warranties of any kind to user and/or any third party including

warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose;

and (ii) any liability whatsoever for any loss howsoever arising from or in reliance upon the

whole or any part of the information and data contained herein.

2) The full-year statutory financial information of preceding financial years quoted in this

presentation are derived from statutory annual financial statements for that relevant

financial years, each of which had been delivered to Registrar of Companies in

accordance with the prevailing Companies Ordinance and were reported on by the

auditors with relevant auditors’ reports without qualification or modification.

Documents

Pandemic Left Economies Stranded · •Sales Tempo Starts to Resume in 2Q •Impact from ASP Control Continues 1H20 Contracted Sales Sales RMB 8.1B +24% GFA 241,500 s.m +26% ASP RMB