#1N 长嘉汇 2019 Mainland China Management Presentation Chongqing Hongkong Land 23 May 2019#2Agenda Speakers: ■ Robert Wong - Chief Executive ■ Simon Dixon - Chief Financial Officer ■ Ling Chang Feng - Executive Director, China Property 1. Introduction 2. Overview of Mainland China Market 3. HKL's Mainland China Business 4. Update on Projects Secured in 2017 and 2018 5. Financial Highlights 6. Outlook 7. Site Visits 8. Q&A H 2019 Mainland China Management Presentation 2#3Introduction to Mainland China Management Team Ling Chang Feng Executive Director China Property Thomas Tam Director Head of Asset Management Ren Xia Yi Director Head of Finance & Operations Eric Chen Associate Director Head of Projects James Zhang Associate Director Head of Business Development Yang Hua Associate Director Head of Chongqing Billy Pang General Manager Asset Management Shirley Lam General Manager WF CENTRAL H 2019 Mainland China Management Presentation 3#4Key Milestones of HKL's Journey in Mainland China Entered mainland China (Maple Place) Entered Chongqing (Bamboo Grove) First wholly- owned project (Yorkville South) Entered Shanghai (Parkville) Acquired JL CENTRAL site 1997 2001 2005 2009 2010 2015 2017 2018 First large-scale residential project (Central Park) First large-scale mixed-use project (Landmark Riverside) Acquired WF CENTRAL and CBD Z3 sites & Entered Chengdu (WE City) Entered Nanjing, Wuhan and Hangzhou & Opening of WF CENTRAL ILJI H 2019 Mainland China Management Presentation 4#5Overview of Mainland China Market H 2019 Mainland China Management Presentation 国元保險 5#6Mainland China Macro Trends GDP Growth $000 Strong growth relative to developed countries, although will continue at a slower but sustainable rate 調 FA Urbanisation Tier-1 & leading Tier-2 cities will continue to enjoy a healthy population inflow Consumption Capacity Consumption will continue to be a key driver of China's mam economy H 2019 Mainland China Management Presentation 用 J $000 6#7Mainland China Property Market 鹹鹹 Tier-1 & Leading Tier-2 cities Will continue to outperform lower tier cities due to population, capital and other resource inflows SHOP H Residential Market in leading cities will be supported by population inflow, urbanisation and rising middle class Retail Challenging conditions, success of projects depends on selecting the right locations and execution expertise Office Oversupply in decentralised locations in a majority of Tier-2 cities 2019 Mainland China Management Presentation SHOP A CENTRAL 7#8Overview of HKL's Mainland China Business H 2019 Mainland China Management Presentation 8#9Mainland China in Focus – Existing Portfolio - CHENGDU WE City Yixinhu Project CHONGQING Bamboo Grove Yorkville North Harbour Tale New Bamboo Grove Central Avenue (formerly "Lijia Landscape") Hillview (formerly "Liangjiang New Project") Yorkville South Landmark Riverside River One (formerly "Bamboo Grove Riverside") Yuelai Project ILJI H 2019 Mainland China Management Presentation WUHAN BEIJING Dream Land Central Park WF CENTRAL CBD Z3 Site NANJING Yue City River and City (formerly "Jiangbei Project") JL CENTRAL SHANGHAI Parkville Caohejing Project HANGZHOU Hangzhou Bay 6#10Our Mainland China Team Structure Approximately 700 staff, 40% of the Group's workforce REGIONAL TEAM LING CHANG FENG Executive Director, China Property OCT LOCAL TEAM Design Beijing Chengdu Chongqing Finance HR & Administration IT Hangzhou Nanjing Shanghai Asset Business Management Development 34 Legal ☑ Property Projects O Management 2019 Mainland China Management Presentation Wuhan 10 10#11JV Partners & HKL's Strengths Joint Venture Partners China Fortune Properties China Merchants Shekou CICC CIFI - 3C 000 Country Garden Excellence Group Jinke KWG Longfor Ping An Transfar Vanke Benefits of Joint Ventures - - - - Benefit from their local expertise Reduce exposure to individual projects Referrals to more potential projects HKL's Strengths Strong balance sheet Strong reputation for operational excellence Experienced design team Respected asset management capabilities Vantone Yanlord Zall - Strong tenant relationships 2019 Mainland China Management Presentation Robust corporate governance structure 11#12Investment Properties – WF CENTRAL TENANT PROFILE BY AREA 12% 12% TOTAL NFA: 46% 5% 43,000 sq. m. 25% Fashion & Accessories Food & Beverages | Jewellery & Watches Others Vacant H 2019 Mainland China Management Presentation PRATS PRAA 12#13Investment Properties – CBD Z3 - Subway Line 10 East 3rd Road 1 2 Core CBD 3 4 5 6 7 Subway Line 1 Chang'an Ave. 8 9 H World Financial 1 2 Center China Fortune Plaza CCTV 3 Headquarters Beijing Kerry China World 4 5 CITIC Tower 6 Center Trade Center 7 CBD Z3 8 Yintai Centre 2019 Mainland China Management Presentation • Located in the heart of the Beijing CBD • Office: 111,000 sq. m. GFA • Retail: 16,000 sq. m. GFA Completion: Q4 2023 13#14Development Properties - Overview Residential Others Include: Hotels Hospital Community Centres Schools Other Ancillary Facilities H 2019 Mainland China Management Presentation Retail DEVELOPABLE AREA (000 sq. m. GFA) BAND OPENING 9.22 75% 6,151* TOTAL 14% 3% 8% Residential Retail Office Others * HKL's share Office 000 14#15Development Properties - How Do We Choose Our Cities? Sizable population base or population inflows tral Cities Annual residential transaction value of over RMB100 bn Large Market Share of total GDP* 9% HKL'S 7 CITIES Share of total Population* 16% Limited Supply Low inventory levels *National Bureau of Statistics, Local Bureau of Statistics H 2019 Mainland China Management Presentation xisting Resource Existing market relationships ◆ Beijing Chengdu⚫ Wuhan Chongqing Nanjing ● Shanghai Hangzhou Middle Yangtze River Valley Jingjinji Area Yangtze River Delta Area Chengyu Megalopolis 15#16- Development Properties – Residential |☐ ☐ ☐ ☐ |☐ ☐ KEY CHARACTERISTICS Mature & Emerging Residential Hubs HD 田 Established Transport Links Best-in-class design and build quality Short Payback Period H 2019 Mainland China Management Presentation 16#17Development Properties – Attributable Saleable GFA Completions - '000 sq. m. 900 800 698 700 600 500 400 355 300 200 100 HKL's share 492 Forecast 799 663 674 2016 2017 2018 2019 2020 2021 ■Chongqing ■Nanjing Wuhan ■Chengdu ■Shanghai ■ Hangzhou H 2019 Mainland China Management Presentation 17#18Development Properties – Commercial Landmark Riverside Park - Hangzhou JL CENTRAL WE City Bay 2016 2017 2018 2019 2020 2021 2022 2023 2024 LCM Danzishi Old Street Yorkville North Central Avenue Yue City Caohejing Dream Land Project Note: Timeline above excludes the medium-term lease assets at River One and a community market at Parkville, which are considered immaterial. H 2019 Mainland China Management Presentation 18#19Development Properties – Assets Held for Medium-Term Lease - '000 sq. m. 500 450 400 350 300 250 200 150 100 64 74 50 14 14 154 154 254 351 432 2016 2017 2018 2019 ■Existing NFA* 2020 2021 Additional NFA* 2022 2023 2024 * HKL's share H 2019 Mainland China Management Presentation 19#20Update on Projects Secured in 2017 & 2018 H 2019 Mainland China Management Presentation 20 20#21River One (100%-owned) Harbour Tale (50%-owned) Chongqing • Situated in Dazhulin, Liangjiang New Area adjacent to New Bamboo Grove • Total GFA: 161,000 sq. m. • • Sales launch: Q4 2019 • Residential: 93%; retail: 6% Completion: Q1 2021 H 2019 Mainland China Management Presentation · • • Pure residential project situated in Lijia, Liangjiang New Area Total GFA: 114,000 sq. m. Sales launch: Q4 2019 Completion: Q3 2020 1 21#22Hillview (50%-owned) Yuelai Project (100%-owned) Chongqing (continued) • Situated in Lijia, Liangjiang New Area Residential: 98%; retail: 1% • Total GFA: 61,000 sq. m. • • Sales launch: Q4 2019 • Completion: Q3 2021 34 2019 Mainland China Management Presentation This rendering is for reference only, subject to change. • Situated in Yuelai, Liangjiang New Area Total GFA: 125,000 sq. m. Residential: 94%; retail: 3% • Sales launch: Q4 2019 . Completion: Q4 2021 22 22#23Shanghai & Chengdu Caohejing Project (26.7%-owned) Yixinhu Project (33%-owned) TTY LIBRARY Situated in the Caohejing Hi-tech Park, Xuhui District, Shanghai · • • Total GFA: 392,000 sq. m. • Office: 51%; residential: 26%; retail: 19% • Sales launch: Q4 2019 • Pure residential project situated in Shuangliu District, Chengdu Total GFA: 155,000 sq. m. Sales launch: Q4 2019 Completion: Q3 2021 • Completion: Q3 2022 H 2019 Mainland China Management Presentation 23#24DREAM LAND Hangzhou Bay (30%-owned) Wuhan & Hangzhou Dream Land (50%-owned) • Situated in Dongxihu District, Wuhan • Total GFA: 493,000 sq. m. • • • Residential: 56%; retail: 30%; office: 14% Sales launch: Q4 2018 Completion: Q1 2024 34 2019 Mainland China Management Presentation • • • Situated in Xiaoshan District, Hangzhou Total GFA: 776,000 sq. m. Residential: 65%; retail: 18%; hotel & convention centre: 7%; hospital: 5% Hospital operator: International Hospitals Group Sales launch: Q4 2018 Completion: Q4 2024 . • 24 +4#25Nanjing Yue City (33%-owned) River and City (50%-owned) • • • • • • Situated in Qinhuai District Total GFA: 260,000 sq. m. Residential: 63%, retail: 33%; hotel: 4% Hotel operator: Mandarin Oriental Sales launch: Q3 2019 Completion: Q3 2022 · Pure residential project situated in Jiangbei New Area • Total GFA: 254,000 sq. m. • Sales launch: Q3 2019 Completion: Q2 2021 H 2019 Mainland China Management Presentation 25#26Nanjing (continued) Subway Line 1 Zhongshan South Road Subway Line 2 Zhongshan East Road Xinjiekou M (3 1 2 ⑤ 4 6 JL CENTRAL (50%-owned) • • 1 IST Mall 2 Deji Plaza • 3) JL CENTRAL • 4 Zhongyang Shopping Mall 5 Bank of China Tower (6 Chaotian Palace H 2019 Mainland China Management Presentation Situated in Xinjiekou CBD Total GFA: 255,000 sq. m. Office: 48%; retail: 35%; commercial-lease residential: 16% Sales launch: Q4 2020 Completion: Q4 2023 26#27商场客梯 10:00 Fo 回 启料 敬請F- LIST DISNEY 爱迪士尼 购物 生命之组 DRAWN FROM LIFE 经典 重现土 Financial Highlights H 2019 Mainland China Management Presentation 胡桃里 27 27#28Hongkong Land's Average Annual Investment BY GEOGRAPHY* China Singapore Over +350% 2012-2016 US$0.6B BY BUSINESS SEGMENT* Thailand Rest of Asia Investment Properties 2017-2018 US$3.0B * Investment is defined as the Group's equity contribution and share of project-level debt H 2019 Mainland China Management Presentation Over +350% 2012 2016 US$0.6B Development Properties 2017-2018 US$3.0B 28#29Capital Employed VALUE BY GEOGRAPHY US$m 10% 4,500 3% 1% 3% 4,000 IN MAINLAND CHINA CAGR: 10% $4,143m 3,500 US$41,934M TOTAL* $2,856m 3,000 US$4,143m 7% 2,500 76% 2,000 1,500 1,000 Hong Kong Southeast Asia Macau 500 Singapore Mainland China Investment Properties Mainland China Development Properties 0 2014 2018 * Represents total equity plus consolidated net debt 34 2019 Mainland China Management Presentation 29#30Funding of Mainland China Business 59% INVESTMENT PROPERTIES US$1,077M TOTAL 6% (2)% 37% DEVELOPMENT PROPERTIES 104% US$3,066M TOTAL 11% (15)% HKL's Share Capital Net debt Minority Interest Reserves HKL's Share Capital Reserves ☐ Net cash H 2019 Mainland China Management Presentation 30#31Development Properties – Attributable Contracted and Completed Sales - * US$m 1,600 1,400 1,200 1,000 $802m 800 $635m $621m 600 400 200 0 2014 $1,347m $1,105m $1,112m $676m $505m $1,578m $1,207m 2015 2016 2017 2018 Contracted Sales ■Completed Sales The above analysis includes share of Joint Ventures & Associates, inclusive of VAT H 2019 Mainland China Management Presentation 31#32Development Properties - Completed Sales Gross Margin in Mainland China 34 50% 40% 34% 36% 31% 30% 20% 10% 41% 40% Average: 36% 0% 2014 2015 2016 2017 2018 ■Gross Margin % (before LAT) * The above analysis includes share of Joint Ventures & Associates 2019 Mainland China Management Presentation 32#33Development Properties - Operating Profit in Mainland China 34 US$m 600 500 400 300 CAGR: 27% $469m $431m 200 $166m $170m $170m 100 0 2014 2015 . The above analysis includes share of Joint Ventures & Associates 2016 2017 2018 The average effective tax rate (inclusive of Land Appreciation Tax) over the past five years is 45% 2019 Mainland China Management Presentation 33#34Development Properties – Assets for Medium-Term Lease on Completion - H 4% 6% VALUE BY GEOGRAPHY 29% 11% US$2.3B* TOTAL Hangzhou ■ Nanjing ■Chengdu Shanghai 23% Wuhan ■Chongqing * Attributable CAPEX upon completion 2019 Mainland China Management Presentation 69% 27% VALUE BY PRODUCT TYPE US$2.3B* TOTAL 10% Retail Office Others 21% 34#35Outlook H 2019 Mainland China Management Presentation 35#36Outlook for the China Business INVESTMENT PROPERTIES DEVELOPMENT PROPERTIES FINANCIAL ■ Continue to look for attractive opportunities to develop prime investment properties in Tier-1 cities, particularly in Beijing and Shanghai ■ Higher level of completions expected in 2019 ■ Remain committed to delivering best-in-class developments ☐ ■ Continue to remain disciplined in assessing opportunities ■ Pace of new investments may slow relative to prior two years ■ Solidify WF CENTRAL's position as a premium lifestyle retail destination ■ The Group remains active in seeking residential-led opportunities in its existing markets H 2019 Mainland China Management Presentation 36#37Site Visits H 2019 Mainland China Management Presentation 37 34#38Site Visits – Landmark Riverside - H香港量地 H 2019 Mainland China Management Presentation To Visit Old French Naval Barracks Sales office & Viewing platform Landmark Riverside Mall Danzishi Old Street • Feature Units Ba 38#39Site Visits - Bamboo Grove 3C 2019 Mainland China Management Presentation • Sales Office Villas To Visit 39#40Site Visits – Yorkville North - H 2019 Mainland China Management Presentation To Visit Sales Office Townhouses & Garden Apartments Feature Units Renmin Primary School Shopping Mall Construction Site & Show Gallery 40#41Q & A 34 H 2019 Mainland China Management Presentation 41#42Appendix H 2019 Mainland China Management Presentation 42 42#43Development Properties – Attributable Saleable GFA Completions - HKL'S SHARE (m sq. m.) CITY 2016 (Actual) 2017 (Actual) 2018 (Actual) 2019 (Forecast) 2020 (Forecast) 2021 (Forecast) Chongqing 0.32 0.61 0.45 0.58 0.53 0.44 Nanjing 0.04 0.14 Wuhan 0.04 0.10 Chengdu 0.04 0.05 0.04 0.07 0.04 0.05 Shanghai 0.04 0.01 0.05 Hangzhou 0.02 0.02 Total 0.36 0.70 0.49 0.66 0.67 0.80 34 2019 Mainland China Management Presentation 43#44Photo Index Page Project Building City Page Project / Building City 1 Landmark Riverside Maple Place Central Park Chongqing Beijing Beijing 8 16 Bamboo Grove 18 4 Yorkville South Chongqing 20 Parkville Shanghai 21 I 5 LCM mall and office towers, Parkville Shanghai 26 6 Danzishi Old Street, Landmark Riverside Chongqing 27 Landmark Riverside Park Rendering of JL Central* Rendering of Hangzhou Bay* Various as outlined on the page* n/a Chongqing Chongqing Nanjing Hangzhou 7 Central Park Beijing 35 Rendering of River and City* Nanjing 8 Yorkville South Chongqing 37 Wang Mansion, Danzishi Old Street, 37 Chongqing Landmark Riverside Landmark Riverside Chongqing 9 Various as outlined on the page* n/a 38 88 Wang Mansion, Danzishi Old Street, Chongqing Landmark Riverside WF CENTRAL Atrium Beijing Danzishi Old Street, Landmark Riverside Chongqing 12 WF CENTRAL Atrium Beijing Bamboo Grove Mandarin Oriental Wangfujing, Beijing Chongqing Beijing 39 Bamboo Grove Chongqing 13 Rendering of CBD Z3 Site* Beijing Bamboo Grove Chongqing Yorkville South Chongqing Yorkville North Chongqing 40 14 LCM, Parkville Shanghai Rendering of Yorkville retail complex* Chongqing ICBC Building, Landmark Riverside Chongqing 41 Bamboo Grove Chongqing 42 Mandarin Oriental Wangfujing, Beijing Beijing 3C #Order of photos listed from left and then the top of each page. *Renderings are for reference only, subject to further changes. 2019 Mainland China Management Presentation 44