2005 Annual Results

All core businesses operated well and turned in solid performances in their respective sectors in 2005.

Turnover $12.5B, up 5%

Profit attributable to shareholders $13.9B, up 10%

Before property revaluation, net profit $4.5B, up 20%; EPS up 20%

Full year DPS 80 cents, up 16%; dividend yield 2.9% p.a.

2005 Results2005 Results

Borrowing costs rose (as interest rate rose) and property development profit declined but were more than offset by operating and other gains.

In the immediate term, rental reversion will fuel the Group’s growth.

In the medium term, new investments across all core sectors will start to contribute to new growth.

The Group is in good financial position and will continue to look for other new investment opportunities.

2005 Results2005 Results

Results HighlightsResults Highlights

+10%$5.18$5.67Earnings per share:

+20%$3,740M$4,499MNet profit excluding revaluation surplus:

+16%￠68.75￠80.00FY05 dividend per share:

+20%$1.53$1.84EPS (Excl. revaluation surplus):

+5%$8,937M$9,389MRevaluation surplus (net of tax & MI):

+10%$12,677M$13,888MProfit attributable to shareholders:

%Changes

31-12-04(Restated)

(HKD)

31-12-05(HKD)

Results HighlightsResults Highlights

23.911.5Interest Cover:

25.6%24.6%Debt to Shareholders’ Equity:

+14%$14.1B$16.1BNet Debt:

+128%1.56%3.56%Average Interest Rate:

+135%$239M$562MBorrowing Costs:

%Changes

31-12-04(Restated)

(HKD)

31-12-05(HKD)

Business PerformanceBusiness Performance

Solid performance in all 3 core sectors.

+5%1,8401,935+6%3,3473,534Logistics

+7%456486+3%3,8233,937CME

+11%3,1083,465+9%4,6455,073PropertyInvestment

%Changes

31-12-04(HK$M)

31-12-05(HK$M)

%Changes

31-12-04(HK$M)

31-12-05(HK$M)

Segment ProfitRevenue

Property InvestmentProperty Investment

All sectors reported solid rental growth.

Harbour City

Revenue Occupancy

97%+6%9451,002Office

89%+13%730823Hotel+9%3,0613,332Total

84%+14%193220Serviced Apartment

99%+8%1,1931,287Retail

%%Changes

31-12-04(HK$M)

31-12-05(HK$M)

Average occupancy : 99% (2004 : 98%)

Favourable rental growth on new leases and renewals

Solid growth underpinned by :

improving local sentiment

rising tourist arrivals

Retail tenant’s average sales psf +17% YoY.

Harbour City – Retail

Average occupancy : 97% (2004 : 91%) Rising rentals due to limited supply & rising demandResumed positive rental reversions

Harbour City – Office

Harbour City – Serviced Apartment

Average occupancy : 84% (2004 : 78%)Moderate rental growth +14%

Property InvestmentProperty Investment

Both sectors reported solid rental growth.

Times Square

+6%837886Total

96%+8%237256Office

99%+5%600630Retail

%%Changes

31-12-04(HK$M)

31-12-05(HK$M)

Revenue Occupancy

Average occupancy: 99% (2004 : 96%)

Substantial rental growth on new leases and renewals

Solid growth supported by:

robust retail market

encouraging tourists arrivals

Retailers recorded double-digit growth in average sales psf.

Times Square - Retail

Average occupancy: 96%

Revenue growth due to significant improvement in reversionary rentals

Remained the preferred location for multinationals engaged in services or consumer goods market

Times Square - Office

Property Investment Property Investment -- ChinaChina

3 Times Squares in operation (Beijing, Shanghai, Chongqing)

Total 3.1M sq. ft. GFA

Occupancy 90%

FY05 Revenue: HK$298M

1717, Nanjing Xi Road, Shanghai 1.6M sq. ft. GFA office developmentCompletion: Mid 2009

Other projects under development

Other projects under planning

Commercial site in Chengdu, 4.75M sq. ft. GFA

2 other developments in Shanghai

Mid 2008

3Q 20074Q 2006

Target Completion Date

1.9Dalian Times Square

2.5Wuhan Times Square0.6Wellington Garden

GFA (M’ sq. ft.)

Property Development Property Development -- ChinaChina

Macro Polo Hotel Group

Current Profile: 10 hotels (3 HK, 4 China, & 3 Asia)

Hong KongHotel & club revenue HK$823M, +13%Double-digit growth in average room rate

China/AsiaAll ranked top among their business sectorsEncouraging performance

New hotels in 2006The Marco Polo Parkside, BeijingThe Marco Polo ShenzhenThe Marco Polo Plaza, Cebu

LogisticsLogistics

Steady growth

ThroughputRevenue

+16%4.355.04+6%2,9643,149MTL

%Changes

31-12-04TEUs(M)

31-12-05TEUs(M)

%Changes

31-12-04(HK$M)

31-12-05(HK$M)

+12%94105

%Changes

31-12-04(HK$M)

31-12-05(HK$M)

MTL’s Associates & jointly controlled entity (post-tax)

MTL MTL -- HKHK

Throughput 5.04M TEUs (+16%)

driven by feeder, transshipment & intra-Asia volume

Market share : 35.3% (2004 : 32.5%)

Current Capacity : 7.5 berths, 5.88M TEUs

HK$1.2B to upgrade equipments/ facilities at CT 1, 2, 5

MTL MTL -- ChinaChina

Chiwan (8% shareholding)

FY 2005 throughput : 2.8M TEUs

Shekou (10% shareholding)

FY 2005 throughput : 2.2M TEUs

New Investments and expansion:

Dachan Bay in Shenzhen West

Taicang in Suzhou

MTL MTL -- New ProjectsNew Projects

Dachan Bay in Shenzhen West (Phase I)

MTL shareholding - 65% 5 berths, 2.5M TEUs capacity, completion 2007/08Investments - RMB7B, MTL’s share ~RMB 4BLetter of Intent for Phase II

Taicang Port in Suzhou (Phase I)

Major feeder port in Yangtze River DeltaMTL’s shareholding - 51%Phase I – 2 berths, FY05 throughput 251K TEUsPhase II – completion by mid 2006

CMECME

+10%475,000523,000+2%1,4481,478Wharf T&T*

+10%291,000320,000+16%481558Internet &Multimedia

+5%702,000738,000---1,8881,884Pay TV

%Changes31-12-0431-12-05

%Changes

31-12-04(HK$M)

31-12-05(HK$M)

RevenueNo. of Subscribers/

fixed lines

* WT&T revenue includes COL and EC Telecom

Re-investing record free cashflow to build future value.

Pay TV – Investment in differentiation supports subscriber growth and steadies revenue.

Internet and Multimedia – Competitive cost base & sharp

return to profitability.

Integrate Wharf T&T and COL IT to focus on the business

sector.

CMECME

TurnoverOperating Profit(Excluding revaluation surplus)

Increase in fair value of investment propertiesNet other charges

Profit Before TaxationTaxation (Incl. deferred taxation on revaluation changes)

Profit After TaxationNet profit excluding revaluation surplus

Summary of 2005 Profit & Loss A/C

12,543 6,003

11,513 47

17,563

17,413 (2,583)

_14,830 4,499

31-12-2005___(HK$M)__

31-12-2004(Restated)

__(HK$M)__%

Changes

11,953 5,257

10,911 (190)

15,978

16,473 (2,925)

_13,548 3,740

+5%+14%+6%

+125%

+6%+12%+9%

+20%

New Accounting StandardsNew Accounting Standards

HKAS 40 Investment Property

HKAS-INT 21 Deferred Taxation

HK-INT 2 Hotel Property

HKFRS 3 Goodwill

Increase in profit after taxation

Attributableto Shareholders

(HK$M)Total

(HK$M)

MinorityInterests(HK$M)

11,416

(2,027)

(21)

50

9,418

97

(18)

(7)

---

72

11,513

(2,045)

(28)

50

9,490

Impact on 2005 Annual Results

Wharf GroupWharf GroupDebt Profile at December 31, 2005

Company and wholly owned subsidiariesCommitted facilitiesUncommitted facilitiesTotal:

Non-wholly owned subsidiaries(non-recourse to Wharf)

Modern Terminals Limitedi-CABLE Communications LimitedOthers

Subtotal:

Overall:

Total Debt(HK$B)

Un-drawn Facility(HK$B)

13.7

1.2

14.9

74%

6%

80%

3.6

0.5

4.1

3.2---

0.5

3.7

18.6

17%---

3%

20%

100%

3.30.7

0.1

4.1

8.2

Wharf GroupWharf GroupNet Asset Value Adjustment

For Supplemental Information Only:

NAV as at December 31, 2005 per Balance Sheet

Subjective adjustments:-

- Modern Terminals (on latest transaction price)

- Hotel Properties (on independent valuation)

- i-CABLE (on market value)

- Deferred tax for surplus on revaluation of invest. Prop.

Adjusted NAV

Per ShareHK$

26.68

3.39

1.37

0.48

3.82

HK$35.74

+16% vs. HK$30.77 as at 6/05

End of PresentationEnd of PresentationEnd of Presentation