#1K HOUSING DEVELOPMENT CORPORATION Company Presentation May 2021#2Table of contents 1. Introduction to HDC 2. Key credit highlights 3. Financial highlights 4. ESG and Sustainability Bond Framework HOUSING DEVELOPMENT CORPORATION 1#3Presenters Ahmed Shaam Chief Financial Officer Mohamed Sharah Financial Controller Ahmed Aslam Chief Accountant HOUSING DEVELOPMENT CORPORATION ■Over 14 years experience in finance and accounting ■Certified ACCA affiliate member with a Bachelors Degree in Accounting and Finance ■Over 7 years experience in finance and accounting ■MSC Finance from Thammasat University, Thailand and BBA, Finance from NUS Over 10 years experience in finance and accounting ACMA and CGMA holder with a Master's Degree in Islamic Finance Practice from The Global Institute of Islamic Finance 2#4HOUSING DEVELOPMENT CORPORATION 1. Intro O HDC TH 3#5Overview of HDC HOUSING DEVELOPMENT CORPORATION Housing Development Corporation Limited ("HDC") overview Largest state owned enterprise ("SOE") in the Maldives ✓ by assets and serves as the master developer, builder, and regulator to foster the development of the Greater Malé region Master developer: HDC is the master developer, builder and regulator for the development of Hulhumalé (combined 428 hectares for Phases 1 and 2), Thilafushi, and Gulhifalhu HDC manages the development of Hulhumalé and nearby islands Gulhifalhu Thilafushi Builder: Investing in infrastructure necessary for quality living and business prosperity Hulhumalé (Phase II) Hulhumalé (Phase I) Hulhumale Regulator: Oversees detailed planning, architectural guidelines and building regulations Initially established in 2001 to undertake the Hulhumalé development project, with housing, real estate, and infrastructure added to its mandate in 2009 Maldives merged Greater Malé' Industrial Zone Ltd ("GMIZL") into HDC in September 2009, adding the development and management of the nearby islands of Gulhifalhu and Thilafushi into HDC's overall mandate G thi Faihu Malé Hulhumalé Mini Mall Project Capital) Velana International Airport Sinamalé Bridge Neighborhood 3 School Being a wholly owned SOE that plays a critical role in the development of Maldives, HDC has obtained the same credit rating (B3 negative rating from Moody's) as the Government of Maldives in March 2021 N3 Commercial Block Project Phase I Central Park HDC is a strategically important state-owned enterprise that enjoys strong government support and is critical to meeting the existing and future housing, industrial and commercial development needs of Maldives Source: Company information. 4#6Key development and milestones 1 ■Phase I reclamation of Hulhumalé began in the Hulhulé- Farukolhufushi Lagoon (HFL) HOUSING DEVELOPMENT CORPORATION 3 ■Completed Phase I reclamation and coastal structure development 5 ■Completed 1,000 social housing unit development project 7 ■Initiated the landmark 7,000 social housing unit development project ■ Obtained financing from international banks backed by sovereign guarantee of Maldives ■US$34m loan from Export Import Bank of India for infrastructure development 9 ■■Sinamalé Bridge was opened, connecting the road network of Hulhumalé to Malé Awarded the "Master Plan Project Award" at the Cityscape Emerging Markets Awards and the "Calix Innovation Award" at the Innovation in Next Generation Networks 11 ■Mandate expanded to include the development of Greater Malé' Region following the merger with GMIZL 1997 2001 2002 2005 2012 2015 2016 2017 2018 2019 2020 2 ■Hulhumalé Development Unit (HDU) was established with the mandate of developing Hulhumalé Ownership of HFL was transferred to HDU which was incorporated as Hulhumalé Development Corporation Limited HDC was awarded the mandate to undertake housing development projects in Hulhumalé Additional 240 hectares in Hulhumalé Phase II was reclaimed by the Company 8 Started Hulhulé-Hulhumalé Link road project US$80m loan from Ministry of Finance and Treasury for infrastructure development US$369m loan from Industrial and Commercial Bank of China for 7,000 housing units project US$159m loan from China Development Bank for 1,530 housing units project ■US$31m loan from Industrial and Commercial Bank of China for Hulhulé - Hulhumalé - Airport Link road project and US$65m loan from Credit Suisse AG for 7,000 housing units project 10 Fahi Dhiriulhun Corporation Ltd took over HDC's social housing role in Hulhumalé (1) pivoting HDC's focus towards developing infrastructure / commercial projects in Hulhumalé Ministry of National Planning and Infrastructure committed to develop and transfer 6 government offices to Hulhumalé Source: Company information. (1) HDC will continue with and own its existing social housing projects; FDC will only takeover upcoming social housing projects. 5#7HDC's vision and mission VISION A Leader in Redefining Quality Living MISSION To be a Pioneer in establishing higher standards of living through intelligent, innovative and sustainable developments in the Maldives CORPORATE VALUES Transformative Responsible Source: Company information. Innovative Harmony Visionary Excel ད HOUSING DEVELOPMENT CORPORATION THE FIVE PILLARS HOUSING DEVELOPMENT CORPORATION Economic drivers and creation of catalyst projects Regulatory body promoting institutional frameworks Establishing catalyst for hard and soft infrastructure Development of a consonant community and socio-economic equity Green initiative 00 6#8Development plan/strategy - Hulhumalé 2025 2030 Phase I 2035 Phase II Source: Company information. Malé Velana International Airport Hulhumalé HOUSING DEVELOPMENT CORPORATION Pure Residential Mix-Residential Educational Commercial Religious Government and Civic Institutional IT Park Industrial Hotel Knowledge Park Mixed Use Mix-Office Convention Center Sports and Recreational Open/Green Space Transportation Municipal/Utilities 7#9Thilafushi and Gulhifalhu mandate in 2020 Overview of Thilafushi and Gulhifalhu 1 new additions to HDC's Gulhifalhu is a reclaimed island c.6km to the west of Malé, which has been earmarked by the government to develop an industrial hub to cater to the needs of the industrial sector in Greater Malé region Thilafushi is a reclaimed island c.7km to the west of Malé, which initially served as a municipal landfill site but is now earmarked as a key industrial zone in the Greater Malé region HDC's acquisition of GMIZL brings the development of Hulhumalé, Gulhifalhu and Thilafushi under one corporate group, providing avenues for improved cohesiveness and efficiency Additional reclamation and infrastructure development (e.g. roads, water and sewage, electricity, and communication networks) is envisaged to realise the master plan for the islands Gulhifalhu Key statistics of Thilafushi and Guhifalhu Reclaimed area HOUSING DEVELOPMENT CORPORATION Thilafushi Gulhifalhu 21 hectares 17 hectares Proposed reclamation 128 hectares 185 hectares 204 56 322 43 Number of tenants Lease plots Average monthly income (2) Total debt Total assets as at 23 Sep 20 MVR12.8m (c.US$0.83m) No long term debt MVR4.5bn (c.US$285m) Strategically located close to Malé and Hulhumalé (1) 20.7/148.7 Land bank (hectares) (1) 16.9/201.9 Land bank (hectares) Thilafushi Hulhumalé' (Phase I) Hulhumalé' (Phase I) Hulhumale Gulhifalhu Hulhulé Thilafushi Malé (Capital) Gulhi Falhu Male' Velana International Airport HDC's acquisition of GMIZ provides an enlarged asset base, rental income and more opportunities for development with no increase in debt Source: Company information. FX of USD/MVR 15.42 used. (1) (2) Post land reclamation Computed based on income for the period of 1 Jan 2020 to 23 Sep 2020 on an annualized basis Sinamalé Bridge 8#10☑ HOUSING DEVELOPMENT CORPORATION 2. Key credit highlights ACE 9#11Empty#121 HDC is wholly owned by the Ministry of Finance, which provides it with strong financial support Corporate and shareholder structure Key regulators President Office of the Maldives Ministry of National Planning, Housing and Infrastructure Ministry of Economic Development In-house development team HDC Government of Maldives (GoM) Ministry of Finance (Shareholder) 100% ownership 3rd party contractors/ consultants HOUSING DEVELOPMENT CORPORATION As a SOE, HDC performs its duties in conjunction with the support received from the Ministry of Finance (Maldives) ("MoF") MoF provides assistance to HDC in multiple areas, including financial and technical expertise as well as consultancy ■MoF has provided sovereign guarantees for a significant portion of HDC's debt and also provides refinancing facilities to HDC to help service its existing debts ■ HDC works closely with key regulators such as the President Office of the Maldives, Ministry of Housing and Urban development, Ministry of Economic Development as well as Ministry of National Planning and Infrastructure, to implement the various development projects across Hulhumalé ■There exists a high likelihood of extraordinary support from the Government of Maldives through MoF, as well as very high default dependence between the two entities HDC has full land planning and real estate development capabilities, where it maintains and develops the master land use plan for Hulhumalé HDC also manages and implements its own projects in Hulhumalé For large projects, HDC will engage 3rd party contractors/developers as well as consultants to assist with construction and development of buildings given the additional level of expertise required Source: Company information. 11#131 Strong financial support from the Maldives government HDC receives strong financial support from the government The GoM has provided unwavering financial support to ensure the continual growth and development of HDC HDC received significant financial assistance from the GoM HOUSING DEVELOPMENT CORPORATION As of November 2020, HDC accounted for US$796m of the total active sovereign-guaranteed debt amount of US$2.3bn. This was the highest amount out of all the beneficiaries of the sovereign guarantee - Capital injection totaling c.US$87m from 2018 - 2020 - Loans totaling c. US$34m from 2018 - 2020 About 82% of HDC's total debt as of November 2020 is guaranteed by the sovereign. Strict cross default clauses exist for the sovereign-guaranteed debt by MoF, with the lowest cross-default threshold at US$1m, implying strong incentive for GoM to ensure the timely and full repayment of HDC's guaranteed and non-guaranteed debt on an ongoing basis Breakdown by types of borrowings (as of November 2020) State Owned Enterprises Sovereign-guaranteed debt by MoF (US$m) From MoF 14.3% Others 3.6% US$695m Sovereign guaranteed 82.1% HDC Other State Owned Enterprises (SOEs) 1,869 723 1,073 601 218 187 796 1.2x. 1.6x- 414 505 2018 2019 2 Dec 2020 Maldives government has shown long term commitment to support HDC through long-term guarantees of its financing through provision of long-term guarantees of its financing as well as direct loans and capital injections Source: Company information, Maldives Ministry of Finance. FX of USD/MVR 15.42 used. 12#141 HDC plays a strategic role in the development of Maldives HDC's strategic mission from the Maldives government HDC's mandate to develop Hulhumalé is of utmost national importance and addresses the pressing housing needs of the Maldivian, especially given c.10% of Maldives population is located in Hulhumalé Apart from housing units, HDC also provides supporting facilities and infrastructure in a socially responsible and commercially viable manner for the country to relieve the current over-congestion in Malé The successful track record of HDC is further augmented with the ongoing development of commercial projects which are expected to provide HDC with more profitable revenue streams and provide Maldivians with gainful employment Following the government directed merger of HDC and GMZIL, HDC's mandate has expanded to include the islands of Gulhifalhu and Thilafushi, which are expected to boost industrial activities in the Greater Malé' Region Recent developments HOUSING DEVELOPMENT CORPORATION HDC has received consistent support from the government in spite of the change in regimes. The current president Ibrahim Mohamed Solih, elected in 2018, has mentioned HDC's projects as the key projects towards achieving the goals of provision of social housing in his 2020 presidential address A total of 15,000 housing units are envisioned to be built in Phase II of which HDC is currently developing two key housing projects: ■7,000 social housing project under Phase II is completed and expected to be fully allocated in 2022 ■1,530 affordable housing project under Phase II is a mixed-use housing project with no social housing allocation. The project is expected to be completed by the end of December 2021 In 2020-2021, HDC has awarded the development of 12 projects worth US$185m spanning the following segments: Council and affordable housing units Mixed residential building According to the Strategic Action Plan for 2019-2023 published by GoM, provision of affordable housing is one of the most important pledges of the current government. Key policy priorities include increasing the housing supply and provision of social housing through institutional and legal reforms Commercial building Office building Café court Batching plant Recreational center HDC's continued success is critical to housing development in Maldives and continual growth and diversification of the local economy Source: Company information. 13#152 Well-positioned to benefit from Maldives' economic recovery Improving medium-term outlook for the economy as real GDP growth is expected to recover post 2020 Inflation rate expected to remain stable and low (Real GDP, US$bn) 7.2% 8.1% 7.0% 22.3% 18.3% (26.4%) 2020E-2022E CAGR: +20% 4.3 4.7 5.0 5.3 4.4 3.7 • ■ 2017 2018 2019 2020E Growth (%) 2021E 2022E Driven by the recovery in tourism as travel restrictions ease... 2.8% 2017 (0.1%) 2018 0.2% 2019 HOUSING DEVELOPMENT CORPORATION (1.4%) 2020E (1) Inflation Rate (%) 2020E inflation is expected to decrease because of policy measures taken by the government due to Covid-19 The expected increase in 2021E inflation mostly due to low base effect, as the policy measures taken in 2020 will be reversed (Number of tourist arrivals, m) (Tourism sector real GDP, US$bn) 78.6% 8.0% 6.8% 14.7% 34.1% 10.3% 9.7% 13.2% ...as well as recovery in non-tourism sectors (Real GDP for non-tourism sectors, US$bn) 41.4% 62.5% (63.5%) (66.8%) 6.2% 7.6% 4.9% (15.5%) 1.4 1.5 1.7 2020A-2022E CAGR: +55% 1.3 1.2 1.1 2020E-2022E 11.6% 19.1% CAGR: +52% 1.1 1.4 3.3 3.5 3.7 2020E-2022E CAGR: +15% 4.1 0.7 0.6 0.8 3.1 3.5 0.5 2017 2018 2019 2020A 2021E 2022E 2017 2018 2019 2020E 2021E 2022E 2017 2018 2019 - Tourism Arrivals Growth (%) ― Tourist Real GDP Growth (%) 2020E Growth (%) 2021E 2022E Source: Note: (1) National Bureau of Statistics, Ministry of Finance, Ministry of Tourism, Maldives Monetary Authority, MOF Budget 2021. FX of USD/MVR 15.42 used. Forecasts based on best case scenario. As of 31 January 2021. 14#162 Well-positioned to benefit from Maldives' economic recovery Strong population growth... ...coupled with a rise in income (ppl) HOUSING DEVELOPMENT CORPORATION 2016-2020 CAGR: +4.1% 2016-2019 CAGR: 4.9% 557,426 530,953 515,696 496,402 9,123 9,472 10,245 10,541 475,513 6,741 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Steady labor force participation rates (1) 65.0% 63.9% 66.0% 67.0% 66.4% 65.5% 65.1% 65.4% 65.6% 66.0% 62.9% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Maldivian average income in-line with target market Average monthly income per earner (MVR) Average monthly income range of HDC's target market (MVR) Average income of buyers of HDC's projects ranges from MVR 7,000 - 14,000 14,000 7,000 11,154 Maldives 14,150 Male Rise in income of Maldivians increases the affordability and serviceability of HDC's housing projects Source: World Bank, Maldives National Bureau of Statistics, Maldives Monetary Authority (MMA), IMF, EIU. (1) World Bank estimate. Measures % of total population ages 15+ that is economically active: people who supply labor for the production of goods and services. 15#173 Hulhumalé is the largest strategic large-scale development in Maldives Hulhumalé Phase I ■ Covers a total land area of 188 hectares ■First settlement officially inaugurated in May 2004 with the resident population growing from 1,000 in 2004 to 50,000 in 2019 ■Completed projects include 704 social housing unit project, Hulhule-Hulhumalé- Airport link road, Hulhumalé N1 Primary and Secondary School and Fahiveni Community Center ■Land allocation and construction expected to be completed by 2025 and 2030 respectively Hulhumalé Phase II Extension of Phase I covering a land area of 240 hectares ■Connecting bridges to Phase I completed in April 2020 ■Completed projects include 7,000 social housing unit projects and upcoming projects include 1,530 affordable housing unit project ■Land allocation and construction expected to be completed by 2030 and 2035 respectively Upon completion: Hulhumalé イ HOUSING DEVELOPMENT CORPORATION is expected to house half the population of Maldives, providing Maldivians with affordable social housing as well as improved living conditions, with less congested traffic and pollution Smart City of the Maldives Introduction of Fibre Optic GPON network to replace traditional cables alongside a transport master plan which includes smart city components such as Smart Traffic Management Systems, Automatic Surveillance Strategic position in Maldives with direct road access to Malé 20 minutes speedboat ride to top resorts in Maldives NEIGHBORH Hulhumalé Hulhuma 5-20 minutes 9KM Speed Boag 3-5mins AAirport Boat: 15mins-25mins Hulhule-Male Ferry OHulhule Isi drive to the Male-Hubule Ferry- capital city of Malé Malé Artificial Beach uhulaa BRIDGE 15 minutes drive to Velana Internation al Airport Sinamalé Bridge Phase II expected to triple capacity Phase I Phase II Residents Capacity: 90K 120K Area: 188 hectares 214 hectares Phase I Phase II Hulhumalé is developed as an expansion of Malé City and is positioned as the next smart city Source: Company information. GPON refers to Gigabit-capable Passive Optical Networks. 16#183 Strategic location also supported by GOM's plans ☑ to develop the Greater Malé Industrial Zone Map of Maldives (1) Legend Capital • Major cities Kulhudhuffushi Population: 8.4k HOUSING DEVELOPMENT CORPORATION Yacht Marina & Cruise Terminal One of its kind in Maldives, with the capacity to handle world's largest cruise ships. Yacht Marina will include 300 berthing facilities for private yachts Tourism Island Mega hotels, resort condominiums and serviced apartments of different scales Malé Population: 154k Hulhumalé Fifth Power Development Project New power plant will have the capacity to generate 50MW of power to Malé, Hulhulé and Hulhumalé, via the Sinamalé Bridge Airport upgrade and expansion US$800m project since 2015 to expand and upgrade the airport which would involve building a brand new runway and a seaplane terminal Velana International Airport Warehouses Thilafushi Gulhi Falhu Relocation of harbor Male' Hulhule-Male Ferry Midhili Magu Sinamalé Bridge Knowledge and IT parks, CBD Hub for regional/global ICT firms Academic District Industrial Zone Thinadhoo Population: 5.2k Addu City Population: 17.5k Fuvahmulah Population: 8.5k Development of the Greater Malé Industrial Zone The GOM unveiled a US$488m development project in July 2019 that involves relocating the commercial harbour from Malé to Gulifalhu as well as shifting all warehouses in the capital to Thilafushi 6.7km bridge project connecting Malé - Vilimalé Gulhifalhu Thilafushi expected to strengthen the strategic location and accessibility for industries on the islands to potentially increase economic activity Hulhumalé is expected to benefit greatly from the further development of the Greater Malé Industrial Zone Source: Maldives Bureau of Statistics, The Edition, Company information. (1) Population figures based off 2014 census. 17#193 Synergies expected from the addition of nearby Thilafushi and Gulhifalhu to HDC's portfolio Gulhifalhu island Thilafushi island HOUSING DEVELOPMENT CORPORATION ■ A new cluster of residential, commercial and industrial real estate developments in the greater Malé region ■ Prime location in close proximity to Malé, international airports and Hulhumalé ■ Well connected with ferry services between Malé' to Gulhifalhu 80 No. of leased plots c.729k Leased area (sqft) M53 YEARS 5 No. of tenants Average lease period (1) 16.9/201.9 Land bank (hectares) ■ Established industrial zone comprising key industrial activities such as boat manufacturing, cement packing, methane gas bottling and various large scale warehousing ■High demand for industrial land in Thilafalhu due to a lack of space for such activities in greater Malé ■Located in close proximity to Malé and Hulhumalé 366 No. of leased plots c.5.9m Leased area (sqft) M 248 No. of tenants 16 YEARS Average lease period 20.7/148.7 Land bank (hectares) With the merger, HDC will oversee the development of the Greater Malé' Region, enabling development plans of GMIZ to be more cohesive and benefit from HDC's expertise Source: Company information, World Bank, The Economic Times. (1) Post land reclamation. (1) 18#204 Proven project management capability to ensure timely and on-budget project completion Proven project management methodology ■ HDC has managed to execute its projects in a reliable and timely manner, with minimal delays and cost overruns for projects since inception ■ For smaller scale projects, HDC has an internal development team which coordinates with local contractors ■ For projects of a larger scale such as the 7,000 social housing project, HDC relies on external contractors who provide assurance of quality, and are more willing and flexible to cater to HDC's needs Strong project management track record 280 Social Housing Unit Project Completion date: Dec 2003 Total cost: USD13.3m Contractor: Sino-Thai Engineering and Construction PCL Completed on time with zero cost variation Completion date: Dec 2016 Total cost: 504 Social HOUSING DEVELOPMENT CORPORATION Completion date: Dec 2008 Total cost: USD14.9m Contractor: AIMA Construction Company Pvt. Ltd Housing Unit Completed on time Project with zero cost variation ■ For external projects, HDC takes on a supervisory role and inspects three key elements - quality, time and cost. The company has a dedicated team to monitor and ensure that the technical specifications and timeline are well defined beforehand in the contract and enforces it during execution USD67.3m Contractor: China National Machinery Equipment Import & Export 704 Social Housing Unit Project Corporation Completed on time with zero cost variation Hulhule- Hulhumalé- Airport link road Completion date: Oct 2019 Total cost: USD38.6m Contractor: Hunan No. 6 Engineering Construction Limited Completed on time with zero cost variation HDC has a strong record in completing projects within allocated budgets in a timely manner Source: Company information. 19#214 Upcoming commercial projects to diversify revenue base and improve profitability HOUSING DEVELOPMENT CORPORATION Commercial Spine ■Revenue stream: Land lease Plot area: 21.5k sqm / 231.4k sqft ■Project description: A pedestrianized strip designed to accommodate a variety of commercial and recreational activities, including regional and global retail brands. ■Revenue stream: Pre-sale and develop Tourism Island (Commercial units and Tower) Commercial units ■Revenue stream: Develop and lease ■Leaseable area: 179.5k sqft Tower ■Revenue stream: Develop and lease ■Leaseable area: 110.4k sqft Project description: Offer various tourist services and facilities such as hotels, apartments, and commercial units providing food and beverage, shopping and recreational areas Plot area: 32.0k sqm / 344.4k sqft Premium Villas ■Project description: Located in Hulhumalé Phase II, a 15 to 20 minute drive from Velana International Airport, a vibrant luxury community with private beaches, scenic views, oceanfront strolls, a clubhouse, accessibility to premium support facilities and urban tourist attractions within the city International Finance Centre ■Revenue stream: Land lease ■ Plot area: 43.8k sqm / 471.5k sqft ■ Project description: A special economic zone with added amenities to create a financial hub catering to various financial institutions and other businesses IT Park ■Revenue stream: Land lease Plot area: 16.1k sqm / 173.8k sqft ■Project description: A world class research hub in ICT, the IT Park not just provides state of the art facilities, but also a leisurely work environment in the center of the Maldives. The park will be affiliated with international techparks providing trainings, R&D services, incubator services, technology commercialization, techno-preneurship, development of applications, facilitating market linkages and grants Heritage and Cultural District ■Revenue stream: Land lease ■Plot area: 94.0k sqm / 1,011.8k sqft ■Project description: Located in Farukolhufushi, a resort island created from the reclamation of Hulhumalé Phase II. The district will consist of an amphitheater, a heritage center, cultural activity huts, an event space, restaurants, preserved buildings, guest villas and a botanical garden Marina/ Cruise Terminal ■Revenue stream: Land lease ■Plot area: 137.7k sqm 1,482.1k sqft ■ Project description: A planned hybrid mixed development that caters to cruise liners and yachts within the Greater Malé region. This will include berthing, a cruise terminal, a yacht club, food and beverage outlets and other supporting facilities. HDC has a strong pipeline of commercial projects to establish a diversified revenue base Source: Company information. Note: Projects do not include upcoming projects in Thilafushi and Gulhifalhu as HDC is in the process of finalising the masterplans 20 20#225 Growing recurring income base Lease income from upcoming projects set to increase steadily... Commercial Spine Tourism Island (commercial units and tower) HOUSING DEVELOPMENT CORPORATION ...with commitments from local and international anchor tenants Coca-Cola .The FISH Manhattan MARKE BANK OF MALDIVES Premium Villas IT Park Marina / Cruise Terminal Financial District Coca-Cola Lease tenure: 15 years Red Red wave Lease tenure: 25 years The Manhanttan Fish Market Lease tenure: 10 years SSONEE HARDWARE Sonee Hardware Lease tenure: 25 years BOC OF CEYLON இலங்கை Bank of Maldives Lease tenure: 21 years ensis FISHERIES PVT. LTD. Ensis Fisheries Lease tenure: 25 years ◆SBI State Bank of India Lease tenure: 5 years sto State Trading Organization Lease tenure: 25 years Bank of Ceylon Lease tenure: 5 years HDC has secured a number of large-scale companies to long-term tenancy agreements, and continues to attract many other businesses, which will underpin the ramp-up in lease income Source: Company information. (1) 2020 breakdown not available, US$18m is total lease revenue. 21#236 Healthy balance sheet with strong financial support from the government ☑ HOUSING DEVELOPMENT- CORPORATION Government loans Sovereign guaranteed loans Cash flow from operations Overseas bond markets Breakdown of financing (as of November 2020) Others 3.6% Financing ability ■14 existing loan facilities from the Ministry of Finance (MoF) HOUSING DEVELOPMENT CORPORATION ■ MoF is expected to continue refinancing until HDC becomes financially independent ■ Debt of US$689m (99% of current debt) are either financed or guaranteed by the Government of Maldives ■Largest portion of sovereign guaranteed loans among all SOEs at 34% ■Implicit support by GoM, given existence of cross default clauses in existing agreements (lowest threshold of US$1m) ■Future opportunities for HDC to tap directly onto international bond markets Total debt / Total assets (%) From MoF 14.3% US$695m Sovereign guaranteed 82.1% 26.8% 2018 32.1% 29.7% 2019 11M2020 HDC benefits from healthy capital structure and steady lease income with strong financial support from government Source: Company information, Maldives Ministry of Finance. 22 22#247 Majority independent Board of Directors providing strong oversight HOUSING DEVELOPMENT CORPORATION Mohamed Jaish Ibrahim Chairman, Independent Director MBA in International Business - Specialization in Projects Over 15 years of Project Management experience Suhail Ahmed Managing Director Bachelors of Science (honors) in Building Management Over 30 years of real estate experience Ahmed Athif Deputy Managing Director Bachelors of Science (honors) in Accounting Over 10 years of accounting experience Shathir Abdul Rahman Chief Operating Officer Ex-Deputy Managing Director of Greater Malé' Industrial Zone Limited Over 20 years of management experience Hassan Muneer Independent Board Director Board member for the National Aviation Company for 6 years Over 15 years of business management experience Ibrahim Afraath Independent Board Director Member of the Elections Committee for 6 years Over 15 years of marketing experience Abdulla Rameez Independent Board Director Bachelor of Civil Engineering Involved in many major projects in the Hulhumalé masterplan Abdulla Miad Independent Board Director Bachelor of Economics Ex-Board Director of Southern Utilities Limited & Greater Malé' Industrial Zone Limited Abdul Munnim Mohamed Manik Independent Board Director Associate member of Chartered Institute of Management Accountants (CIMA) Over 10 years of accounting experience Mohamed Jalal Independent Board Director Entrepreneur and a businessman Over 10 years of business management experience Representative from the Ministry of Finance Mariyam Shawadin Abdulla Board Director Master of Law (International Banking & Finance) Over 5 years of legal experience HDC's Board of Directors are recommended by The President's Office of Maldives. The Privatization and Corporization Board appoints them after reviewing their suitability 23 23#257 Highly experienced management with proven track record HOUSING DEVELOPMENT CORPORATION Ahmed Shaam Chief Financial Officer Certified ACCA affiliate member Ex-Associate General Manager at Maldives Airports Fathimath Nihaya Director - Procurement & Warehouse Management Bachelor of Commerce Served at HDC for over 15 years Mohamed Ilham Director - Human Resource Management BA (Hons) in Human Resource Management Recognized among top 50 most talented HR leaders in Maldives Mohamed Rasheed Director - Projects Management & Development Bachelor of Technology (Hons) in Construction Management Over 10 years of project management experience Ismail Shan Rasheed Director - Real Estate Management Bachelor of Applied Science (Architectural Science) Over 10 years of architecture experience Dr. Fathimath Shiuny Director - Corporate Legal Affairs Ph.D in Law, Masters in Comparative Law Over 10 years of legal experience Mohamed Solah Director - Corporate Affairs, Administration & ICT Bachelor of Computer Applications Over 10 years of ICT and management experience Adam Azmee Director - Municipal Services Graduate Certificate in Management and Masters in Business Administration Over 10 years of management and operations experience Hussain Ziyath Director - Planning and Development Masters of Arts in Urban Design & Planning Vice president of Architects Association Maldives Areen Ahmed Director - Business Development, Marketing & Sales Master of Business Administration Over 10 years of Business development experience Ahmed Nafiz Director - Business Solutions and Smart Infrastructure MBA, National and International Diploma in Telecom Engineering Over 20 years of experience in the telecommunication industry 24 24#26CORPORATION Financial highlights ☑ HOUSING DEVELOPMENT 25 25#27Financial overview of HDC Total debt, Total assets, and Total debt / Total assets (US$m, %) 1,812 27% 486 1,964 32% 631 2,341 Adjusted EBITDA (1) and Adjusted EBITDA margin (1) (US$m, %) 30% n.m. 220.8 695 2018A 2019A 11M2020 ■Total assets Total debt Total debt/Total assets Adjusted EBITDA (1) / Finance costs (x) DSCR (%) 33.0x 2018A 2.8x 1.6x 2019A 11M2020 90% 65% 33.0 HOUSING DEVELOPMENT CORPORATION 19.6 2018A 2019A 11M2020 ■ EBITDA EBITDA margin 119.0% 120.0% 111.0% 2018A 2019A 11M2020 Healthy financial metrics that are consistently within loan covenants Source: Company information, FX of USD/MVR 15.42 used. Note: (1) Figures for 2018, 2019, 11M2019 and 11M2020 are not prepared on a pro-forma basis accounting for the GMIZL merger. Adjusted EBITDA represents EBITDA as adjusted for costs that are considered by management to be not reflective of the Company's core operations. EBITDA margin for 2018 exceeds 100%, deeming it not meaningful. 26#28Debt profile HDC weighted average interest rate (1) Type of borrowing Interest rate (%) 5.8% Sovereign guarantee From MoF Others All HDC debt repayment profile as of 30 Nov 2020 (US$m) 149 Less than 1 year Source: Company information, FX of USD/MVR 15.42 used. (1) 92 42 6.3% 8.8% 6.0% HDC types of borrowings (as of November 2020) From MoF Others 3.6% 14.3% 193 US$695m Sovereign guaranteed 82.1% 265 HOUSING DEVELOPMENT CORPORATION More than 5 years 2 to 5 years 1 to 2 years Weighted average interest rate based on gross loan amount and not loan amount outstanding. 27#29☑ HOUSING 4. DEVELOPMENT CORPORATION ESG and Sustainability Bond Framework 28#30HDC is at the start of its ESG journey and puts strong emphasis on establishing policies to meet international standards ☑ HOUSING DEVELOPMENT CORPORATION Compliance with environmental policies ■While there are no specific environmental regulations that apply to HDC, the company adheres to the guidelines provided by the Environmental Protection Agency (EPA) ■In 2017, HDC collaborated with BREEAM in UK, the world's leading sustainability assessment method for master planning projects, infrastructure and buildings. HDC is currently in the process of integrating the BREEAM standards and green components in planning and developmental guidelines Rain-Water Harvesting Systems Smart Waste Management Solutions Environmental risks and climate resilience ■ HDC takes environmental and climate considerations seriously, and sees threats such as global warming, pollution and depletion of resources to be of paramount importance to the sustainability of the region ■To deal with these issues, the government is implementing projects which include solar energy as well as waste management projects in collaboration with World Bank. A rain-water harvesting project is in the pipeline, as it is being assessed by World Bank on how it can be implemented. A study on potential public transport models for Maldives is also underway, which would aid the government in pushing for public transportation to reduce vehicle pollution ■ Hulhumalé was specially reclaimed to be at least 2 metres above sea level(1) so that it would be less vulnerable to the increase in sea level. Hulhumalé has the highest above mean sea level in all of Maldives, as most islands are only 1-1.2 metres above sea level Establish Data Collection Mechanism Environmental Risk Mitigations Achieve Maximum Energy Efficiency Source: Company information. (1) After the tsunami that struck Maldives in 2004, 2 metres above sea level is regarded as the safe standard. 29 29#31Overview of HDC's Sustainability Bond Framework HOUSING DEVELOPMENT CORPORATION HDC has established a Sustainability Bond Framework outlining the eligible projects and process under which the company aims to issue Sustainability Bonds. The Framework addresses the four key pillars of the International Capital Market Association (ICMA) Green Bond Principles 2018, Social Bond Principles 2020 and Sustainability Bond Guidelines 2018 Process for Project Evaluation & Selection Management of Proceeds Use of Proceeds An amount equivalent to the proceeds of the Sustainability Bond issuance will be used exclusively to finance or refinance, in whole or in part, eligible Green and/or Social Projects. Eligible Green Project Categories ■ Green Buildings Renewable Energy Energy Efficiency Sustainable Water and Wastewater Management Eligible Social Project Categories Affordable Housing Affordable Basic Infrastructure Socioeconomic Advancement and Employment Generation " Initial evaluation of planned projects by internal Bid Evaluation or Proposal Evaluation Committee HDC Management Board to opine on initial analysis and present to HDC's Board of Directors for final decision on project selection Environmental and social controversy monitoring related to Eligible Projects to be conducted throughout the life of any Sustainability Bonds issued Sustainable Bond issuance proceeds to be credited to and tracked through a dedicated sub-account Balance of tracked proceeds will be adjusted monthly to match the Eligible Project allocations All Sustainable Bond issuance proceeds to be allocated to Eligible Projects within one year of issuance Reporting Publishing of allocation and impact reporting at the project-level on an annual basis, and at least until the full allocation of the net proceeds Allocation reporting to include: Eligible Projects financed or refinanced Amounts allocated to Eligible Projects Proportion of proceeds used for financing vs. refinancing % of co-financing for Eligible Projects Balance of any unallocated proceeds Types of placements and uses for temporary unallocated funds Verification of allocation reporting and impact metrics and data by an independent external third party until full allocation and in case of any material changes 30 30#32Eligibility Criteria Eligible Green Project Categories The development and construction of office, commercial or residential buildings meeting the below criteria: BREEAM "Very Good" certification or above. Measures to increase the usage of renewable energy sources, including: 1 Green Buildings 2 Renewable Energy The installation and maintenance of solar charging stations in parking areas for battery bikes/cycles. Measures to increase the efficiency of energy used throughout Hulhumalé, including: 3 Energy Efficiency Sustainable Water 4 and Wastewater Management The installation and maintenance of energy efficient lighting in residential buildings, institutional buildings, and open spaces, achieving a saving in energy consumption of at least 50%; Infrastructure, equipment, technology and processes related to the implementation of energy efficient deep water source district cooling systems. Expenditures related to rainwater harvesting projects, i.e. capture and storage of rain and storm water, to improve the overall usage and efficiency of water use in Hulhumalé. Desalination plants are explicitly excluded from the Eligible Green Project Category Eligible Social Project Categories イ HOUSING DEVELOPMENT CORPORATION 11 COMMUNITIES AFFIN CLEANCE FRIVI 6 GEWER A 1 Affordable Housing Construction of social housing projects for the population of the Maldives, with eligible persons for specific projects determined by a committee formed under the Ministry of National Planning, Housing and Infrastructure FE4ERTY Construction, installation and maintenance of affordable infrastructure, including: Fire hydrant systems across public spaces for the population of Hulhumalé and Thilafushi; SUSTAINABLE CHES FEMERTY Affordable Basic 2 Infrastructure " Public road and bridge infrastructure connecting Hulhumalé and Thilafushi with surrounding islands including Malé, Hulhulé, Villigili and Gulhifalhu to support commercial, industrial and socioeconomic development; ர்க்கர் Rollout of Open Access Gigabit Passive Optical Network (GPON) for the population of Hulhumalé. Projects to support socioeconomic advancement and increase employment for the population of Hulhumalé, including: Socioeconomic Advancement and 3 Development of commercial buildings to support local employment generation and industrial development in Hulhumalé, including museums, exhibition centres, retail locations and warehouse shells; Employment 1 FRAURT VEOH MAI M Generation Vertical farming opportunities on social housing projects to provide solutions for small-scale food producers, increase agricultural productivity, and reduce urban heat effects. Look-back Period The look-back period for eligible projects will be 48 months for projects related to housing and 36 months for all other eligible projects. 31#33Disclaimer HOUSING DEVELOPMENT CORPORATION This document and any related presentations have been prepared by the Housing Development Corporation ("HDC"). This document and any related presentations are being given solely for your information and for your use and may not be taken away, reproduced or redistributed to any other person. By attending this presentation, you are agreeing to be bound by these restrictions. The information contained in this document and any related presentations (the "Information") is strictly confidential and has been provided by HDC and has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the Information or opinions contained herein. It is not the intention to provide, and you may not rely on this document as providing, a complete or comprehensive analysis of HDC's economic, fiscal or financial condition. The inclusion of such data in this document or any related presentation should not be regarded as a representation or warranty HDC, its advisors or representatives or any other person as to the accuracy or completeness of such Information and should not be relied upon when making an investment decision. Certain statistical, economic and other information included in this document is the latest official data of HDC that is available at the date of this presentation. Some of this information and data have not been made available to the public and/or are preliminary and are subject to revision or adjustment as additional or amended information becomes available. HDC cannot provide any assurances that material changes will not be made or that the information provided is complete. HDC is not obligated to distribute such revised data and information to any investor. Certain data in this document was obtained from various external data sources, and HDC has not verified such data with independent sources. Accordingly, HDC and its advisors and representatives make no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. Certain statements contained in this document, including any information as to our strategy, plans or future financial or operating performance constitute "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe(s)", "estimate(s)", "anticipate(s)", "expected to", "project(s)", "expect(s)", "intend(s)", "aim(s)", "plan(s)", "predict(s)", "may", "will", "seek(s)", "would", or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include statements regarding the intentions, beliefs or current expectations of HDC concerning, amongst other things, HDC's results of operations, financial condition and performance, prospects, growth and strategies and the industry in which HDC operates. By their nature, forward-looking statements address matters that involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance and HDC's actual results of operations and financial condition, and the development of the business sector in which HDC operates, may differ materially from those suggested by the forward-looking statements contained in this document. In addition, even if HDC's results of operations and financial condition, and the development of the industry in which HDC operates, are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. This document and any related presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to subscribe for or purchase any securities and nothing contained herein shall form the basis of, or be relied on, in connection with any contract or commitment whatsoever. Any decision to purchase securities in the context of any proposed offering undertaken in the future by HDC, if any, should be made on the basis of information contained in the offering document published in relation to such an offering. Any securities offered by HDC will not be registered under the Securities Act and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption to registration. The distribution of this document and any related presentation in other jurisdictions may be restricted by law and persons into whose possession this document or any related presentation comes should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction. 32 32