2018 results...2018 results 4 hongkongland’s journey since 2016 increasing contribution from...

Presentation

2018 Results

1 March 2019

2018 Results 2

1. Hongkong Land’s Journey since 2016

2. 2018 Results Highlights

3. Investment Properties

4. Development Properties

5. Financial Highlights

6. Outlook

7. Q&A

Speakers: Robert Wong, Chief Executive & Simon Dixon, Chief Financial Officer

Agenda

2018 Results 3

Hongkong Land’s Journey since 2016

Significant increase in new investments over the last two years

Average Yearly Investment by Business Segment*Average Yearly Investment by Geography*

China Singapore Rest of AsiaThailand

2012 - 2016

US$0.6bn

2017 - 2018

US$3.0bn

Development Properties

2012 - 2016

US$0.6bn

2017 - 2018

US$3.0bn

Investment Properties

* Investment is defined as the Group’s equity contribution and share of project-level debt

2018 Results 4

Hongkong Land’s Journey since 2016

Increasing contribution from Development Properties

Operating Profit by Segment#

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2012 - 2016 2017 2018

Investment Properties Development PropertiesUS$m

*^ *

$1,256m

$1,501m

$1,626m

* Restated^ Average operating profit between 2012 and 2016# Before corporate overheads

66%73%

64%

34%

27%

36%

52018 Results

2018 Results Highlights

2018 Results 6

Key figures

Profit1: US$2,457m (2017: US$5,614m)

Net debt: US$3.6bn (Dec 2017: US$2.5bn) NAV per share: US$16.43 (Dec 2017*: US$15.66) Final dividend per share: US¢16 (1H 2018: US¢6)

Highlights

Underlying profit up 9% to a record US$1,036 million

Full-year dividend up 10% Stable asset values Twelve new projects secured

2018 Results Highlights

US$1,036mUnderlying profit

US$38.3bnShareholders’ funds

822947

1,036

2016 2017 2018

3137 38

Dec 2016 Dec 2017 Dec 2018

+9% YoY +3% YoY

1 Attributable to Shareholders of the Company

**

*

* Restated

*

72018 Results

Investment Properties

2018 Results 8

Investment Properties Overview

Investment Properties are primarily located in Hong Kong and Singapore

9,242*

TOTAL

TOTAL COMPLETED AREA (HKL’s share)

7,165

1,473

604

Office

Retail

Hotel

(000’s sq. ft NFA)

258TOTAL

OTHERS

1,779TOTAL

88TOTAL

HONG KONG4,139582143

MACAU98151

HANOI758

BANGKOK2761

SINGAPORE1,648131

42216

4,864TOTAL

83TOTAL

JAKARTA1,03692

1,128TOTAL

PHNOM PENH19811294

*Equivalent to 859,000 sq. m.

249TOTAL

404TOTAL

389TOTAL

BEIJING389

*As at 31 Dec 2018

2018 Results 9

Accounting

2016 2017 2018

Average net rent(HK$ psf/month) 103 108 113

Year-end vacancy 2.2% 1.4% 1.4%

Weighted average lease expiry (years) 3.8 3.7 4.0

2019 2020 2021

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

1,084 969 1,213

% of area subject to expiration/rent revisions 26% 23% 30%

- Expiration 20% 18% 14%

- Rent revisions 6% 5% 16%

Average expiring net rent(HK$ psf/month) 110 118 119

AVERAGE RENTS & VACANCY

EXPIRATION & INTERIM RENT REVISIONS

Positive rental reversions and low vacancy as market supply remained tight

Hong Kong Portfolio – Office

40%

30%

8%

6%

2%1%

13%

OFFICE TENANT PROFILE BY AREA

Trading

Banks and Other Financial Services

Legal

Government Others

Property

2018 Results 10

2016 2017 2018

Average net rent(HK$ psf/month) 218 224 233

Year-end vacancy 0% 0.1% 0.3%



Higher rents due to positive reversions and higher turnover rent

Hong Kong Portfolio – Retail

49%

31%

6%

14%

RETAIL TENANT PROFILE BY AREA

Fashion & Accessories

Jewellery & Watches Others

Food & Beverages

2018 Results 11

2019 2020 2021

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

202 341 589

% of area subject to expiration/rent revisions 12% 21% 36%

- Expiration 5% 14% 25%

- Rent revisions 7% 7% 11%

Average expiring gross rent(S$ psf/month) 9.6 9.1 9.8

Positive rental reversions as market continued to recover

Singapore Portfolio – Office

2016 2017 2018

Average gross rent(S$ psf/month) 9.3 9.1 9.2

Year-end vacancy 0.1% 0.3% 2.5%


69%7%

6%

6%

5%2% 5%

OFFICE TENANT PROFILE BY AREA

EXPIRATION & INTERIM RENT REVISIONS


Banks and Other Financial Services

Legal

Natural Resources

Accounting

IT Services & Consultancy

Property

Others

2018 Results 12

Rest of Asia Portfolio

Beijing – WF CENTRAL (84%-owned)

Prestigious retail centre, which includes an exclusive luxury hotel (Mandarin Oriental)

Destination for renowned art and cultural exhibitions in the city

Prominent fashion houses making their debuts in mainland China

Over 40,000 sq. m. NFA of retail space

Retail component had its grand opening in May 2018

Occupancy: 88%

Hotel opening in March 2019

Jakarta – Jakarta Land (50%-owned) Existing portfolio features 210,000 sq. m. NFA,

including WTC 3 which was completed in early 2018

Average gross rent: US$26 psm per month(2017: US$25 psm per month)

Occupancy (excluding WTC 3): 91%

Phnom Penh – EXCHANGE SQUARE(100%-owned) Grand opening in May 2018

NFA: 25,000 sq. m.

Average gross rent: US$24 psm per month (2017: US$25 psm per month)

Occupancy: 85%

MAINLAND CHINA SOUTHEAST ASIA

Performance within expectation

132018 Results

Development Properties

2018 Results 14

Development Properties Overview

The Development Properties portfolio spans primarily across seven countries and 14 cities, with a key focus on Mainland China and Singapore

881 TOTAL

THE PHILIPPINES182699

821TOTAL

INDONESIA81740

9,299*

TOTAL

TOTAL DEVELOPABLE AREA (HKL’s share)

3,353

5,946

Constructed

Under construction/ to be developed

(000’s sq. m. GFA)6,151TOTAL

MAINLAND CHINA3,0343,117

311TOTAL

THAILAND-311

VIETNAM16152

194TOTAL

SINGAPORE-194

3TOTAL

OTHERS3-

*As at 31 Dec 2018

771 TOTAL MALAYSIA

37734

167TOTAL

2018 Results 15

CHENGDU

CHONGQING

NANJING SHANGHAI

Mainland China Portfolio – Overview

Ten projects Total GFA 6.6 million sq. m.

(HKL’s share: 4.5 million sq. m.)

Two projects Total GFA 1.1 million sq. m.

(HKL’s share: 509,000 sq. m.)

Two projects Total GFA 631,000 sq. m.


Three projects Total GFA 769,000 sq. m.

(HKL’s share: 340,000 sq. m.)HANGZHOU

Hangzhou Bay (30%-owned) Total GFA 776,000 sq. m.


Wuhan Dream Land (50%-owned)

Total GFA 493,000 sq. m.(HKL’s share: 247,000 sq. m.)

WUHAN BEIJING Central Park (40%-owned) Total GFA 329,000 sq. m.


2018 Results 16

Mainland China Portfolio

Higher contracted sales but lower revenue and profit recognised due to timing of completions

SOLD BUT UNRECOGNISED SALES#REVENUE RECOGNISED*# CONTRACTED SALES#

-

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018

Chongqing Chengdu

Shanghai BeijingUS$m

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2016 2017 2018

Chongqing Chengdu Shanghai

Beijing Other Cities

-

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018

Sales to be recognised after next 12 months

Sales to be recognised within next 12months

US$mUS$m

* Includes only revenue from property sales# The above analysis includes share of Joint Ventures & Associates

$676m

$1,347m

$1,105m $1,112m$1,083m

$1,032m

$1,358m

$1,207m

$1,578m

2018 Results 17

Singapore Portfolio – Overview

LAKE GRANDE

710 units 537,000 sq. ft GFA

(50,000 sq. m.) Completion: 2019 100% pre-sold

PARC ESTA

1,404 units 1.05 million sq. ft GFA


IMAGE TO BE UPDATED

MARGARET VILLE

309 units 239,000 sq. ft GFA


TULIP GARDEN 50% JV with Yanlord 672 units 507,000 sq. ft GFA

(47,000 sq. m.) Completion: 2022

2018 Results 18

Singapore Portfolio

Revenue and profit contribution driven by the completion of Sol Acres

SOLD BUT UNRECOGNISED SALES REVENUE RECOGNISED CONTRACTED SALES

-

200

400

600

800

1,000

2016 2017 2018

J Gateway LakeVilleSol Acres Lake GrandeMargaret Ville

$271m

$953m

$487m

US$m

-

100

200

300

400

500

600

700

2016 2017 2018

LakeVille Sol AcresLake Grande Margaret VilleParc Esta

-

200

400

600

800

1,000

1,200

2016 2017 2018

Sales to be recognised after next 12 months

Sales to be recognised within next 12 months

US$m US$m$687m

$491m

$368m$726m

$1,135m

$420m

* * * *

* Restated

2018 Results 19

Rest of Asia Portfolio

Nava Park (49%-owned) Site area: 68 ha; GFA: 741,000 sq. m. 734 units launched for sale, 84% pre-

sold Completion: 2017 to 2033

Anandamaya (40%-owned) Site area: 1.3 ha; GFA: 116,000 sq. m. 509 units, 95% pre-sold Completion: 2018

Asya (33.5%-owned) Site area: 68 ha; GFA: 1.1 million sq. m. 351 units launched for sale, 32% pre-

sold Completion: 2019 to 2031

Two Roxas Triangle (40%-owned) Site area: 0.4 ha; GFA: 98,000 sq. m. 182 units, 100% pre-sold Completion: 2019

Mandani Bay (40%-owned) Site area: 20 ha; GFA: 1.2 million sq. m.

3,115 units launched for sale, 71% pre-sold

Completion: 2020 to 2035

The ESSE Sukhumvit 36 (49%-owned) Site area: 0.4 ha; GFA: 38,000 sq. m. 338 units, 59% pre-sold Completion: 2020

INDONESIA THE PHILIPPINES

THAILAND

Performance within expectation

VIETNAM

The Nassim (50%-owned) Site area: 0.6 ha; GFA: 31,000 sq. m. 238 units, 100% pre-sold Completion: 2018

29B NDC (70%-owned) Site area: 0.5 ha; GFA: 57,000 sq. m. 515 luxury apartments Completion: 2021

Thu Thiem River Park(64%-conditionally acquired) Site area: 3.5 ha; GFA: 175,000 sq. m. 1,111 luxury apartments and 52

commercial units Completion: 2021 to 2024

2018 Results 20

New Projects

Twelve new Development Properties projects were added during 2018

Liangjiang New Project (50%-owned)• JV with Excellence Group

• Residential project

• GFA: 61,000 sq. m.

• Completion: 2021

Yuelai Project (100%-owned)


• GFA: 125,000 sq. m.


CHENGDU

Yixinhu Project (33%-owned)• JV with Longfor and Jinke


• GFA: 155,000 sq. m.


CHONGQING SHANGHAI

Caohejing Project (26.7%-owned)• JV with Vanke, China

Fortune Properties and Xuhui

Land

• Mixed-use

• GFA: 392,000 sq. m.

• Completion: 2021 to 2023

2018 Results 21

New Projects


PHILIPPINESNANJING SINGAPORE

JL CENTRAL (50%-owned)

• JV with Pingan

• Office and retail

• GFA: 255,000 sq. m.


Bridgetowne (40%-owned)

• JV with Robinsons Land

• Mixed-use

• GFA: 144,000 sq. m.

• 2,048 units


Tulip Garden (50%-owned)

• JV with Yanlord


• GFA: 47,000 sq. m.

• 672 units


Jiangbei Project (50%-owned)• JV with Longfor


• GFA: 254,000 sq. m.


2018 Results 22

New Projects


INDONESIA THAILAND

Gatot Subroto (50%-owned)

• JV with Astra

• Residential and office

• GFA: 77,000 sq. m.

• 313 residential and 470

commercial units


Arumaya (40%-owned)

• JV with Astra


• GFA: 24,000 sq. m.

• 262 units


Nonthaburi (49%-owned)

• JV with Property Perfect


• GFA: 433,000 sq. m.

• Over 1,200 units


King Kaew (49%-owned)

• JV with Property Perfect


• GFA: 164,000 sq. m.

• 438 units


232018 Results

Financial Highlights

2018 Results 24

FY2017* (US$m) FY2018 %YoY

1,616 Revenue 2,665 65

(740) Net operating costs (1,576) 113

876 Operating profit 1,089 24

302 Share of results of joint ventures 265 -12

(78) Net financing charges (114) 46

(152) Tax (206) 36

(1) Non-controlling interests 2 -300

947 Underlying profit 1,036 9

4,667 Non-trading items 1,421 -70

5,614 Profit attributable to shareholders 2,457 -56

Record underlying profit of US$1,036 million, up 9% year-on-year

Consolidated Profit and Loss Account

* Restated

2018 Results 25

Movement in Underlying Profit

Increase in underlying profit driven by higher average rent in Hong Kong and development profit recognisedin Singapore

US$m

0

200

400

600

800

1,000

1,200

1,400

Underlying profit2017*^

Investment Propertiesoperating profit

(pre-tax)

DevelopmentProperties operating

profit(pre-tax)

Net increase infinancing charges, tax,

non-controllinginterests & other

expenses

Underlying profit 2018

* Restated^ The above analysis includes share of Joint Ventures & Associates

$947m+$56m

+$69m -$36m $1,036m

2018 Results 26

Operating Profit by Segment and Region

INVESTMENT PROPERTIES# DEVELOPMENT PROPERTIES#

Hong Kong and Mainland China remain the largest profit contributors

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

2017 2018US$m US$m

-$100

$0

$100

$200

$300

$400

$500

$600

2017* 2018

Hong Kong MainlandChina & Macau

Singapore Rest of Asia Total Hong Kong MainlandChina

Singapore Rest of Asia Total

# The above analysis includes share of Joint Ventures & Associates* Restated

$843m$885m

$10m $19m

$116m $116m

$19m $24m

$988m$1,044m

-$6m -$8m

$469m$431m

$39m

$122m

$11m$37m

$513m

$582m

2018 Results 27

Consolidated Cash Flow

Lower operating cash flows due to land payments

FY2017 (US$m) FY2018 %YoY

800 Operating activities 604 -25

(947) Investing activities (1,056) 12

(193) Financing activities 237 -223

(340) Net cash inflow/(outflow) (215) -37

1,898 Cash and cash equivalents at beginning of the year 1,617 -15

59 Effect of exchange rate changes (33) -155

1,617 Cash and cash equivalents at end of the year 1,369 -15

(4,166) Gross debt (excluding bank overdrafts) (4,933) 18

(2,549) Net debt at end of the year (3,564) 40

2018 Results 28

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

31 Dec 2016* 31 Dec 2017* 31 Dec 2018*

Hong Kong Mainland China & Macau

Singapore Rest of Asia

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Mainland China, HK & Macau

Rest of Asia

Properties Carrying Values

INVESTMENT PROPERTIES - TOTAL VALUE# DEVELOPMENT PROPERTIES – NET INVESTMENT#^

Higher market rents in Hong Kong; new Development Properties secured

31 Dec 2016 31 Dec 2017 31 Dec 2018

$38,515m

$31,892m

$36,813m

US$m

31 Dec 2016* 31 Dec 2017* 31 Dec 2018

US$m

Pre-sale proceeds

Singapore

$5,150m

$2,510m

$4,068m

# The above analysis includes share of Joint Ventures & Associates* Restated ^ Includes contract assets

2018 Results 29

Landmark Riverside, Chongqing• NFA: 43,000 sq. m. (HKL’s share:

21,500 sq. m.• Opened in Sep 2016

LCM, Shanghai• NFA: 60,000 sq. m. (HKL’s share:

30,000 sq. m.)• Opened in Sep 2018

43%

25%

8%

16%

8%

DEVELOPMENT PROPERTIES

NET INVESTMENT$5,150M#

Net Investment in Development Properties

# The above analysis includes share of Joint Ventures & Associates

MEDIUM-TERM LEASE ASSETS UNDER DEVELOPMENT

MEDIUM-TERM LEASE ASSETS IN OPERATION

10 projects with medium-term lease assets under development, with an estimated total NFA of 830,000 sq. m. (HKL’s share: 390,000 sq. m.)

Yorkville North: 2020 completion

JL CENTRAL: 2023 completion

Others: 2019 to 2024 completion

Singapore

OthersMainland China (for immediate sale)

Mainland China (for medium-term lease) (under construction)

Mainland China (for medium-term lease) (completed)

24% of net investment in Development Properties relate to medium-term lease assets in Mainland China

2018 Results 30

$2,008m

$2,549m

$3,564m

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2016 2017 2018

Capital Management

* Restated up to 2017^ Calculated as underlying operating profits, including the Group’s share of associates and joint ventures’ operating profits, divided by net financing charges including the Group’s share of associates and joint ventures’ net financing charges

US$m (US¢) 2014 2015 2016 2017 2018

Underlying earningsper share* 41.64 39.53 34.92 40.24 44.24

Dividend per share 19.00 19.00 19.00 20.00 22.00

Dividend payoutratio* 46% 48% 54% 50% 50%

2018 share repurchases: US$132m

Average price of repurchased shares: US$6.95

Share repurchases on an opportunistic basis; no fixed policy

SHARE REPURCHASES

DIVIDENDSNET DEBT

11.2 13.7 10.3Interest Cover*^

Higher net debt; increased dividends with higher underlying EPS; share repurchases on an opportunistic basis

6 7 9Net Gearing (%)

2018 Results 31

0

500

1,000

1,500

2,000

2,500

3,000

2019 2020 2021 2022 2023 2024+

Bank facilities (drawn & undrawn) Bonds*

Treasury Management

MATURITY PROFILE OF COMMITTED FACILITIES / BONDS (AT 31 DEC 18)

Financial position and liquidity remain strong

US$m

$662m

$303m

$869m

$2,703m

$262m

$2,408m

* Issued under MTN Programme which are at face value

2017 2018

Net debt (US$m) 2,549 3,564

Net gearing 7% 9%

Average tenor of debt (years) 5.9 6.2

Average interest cost 3.6% 3.5%

Credit ratings

- S&P A A

- Moody’s A3 A3

322018 Results

Outlook

2018 Results 33

Outlook

Investment Properties are expected to continue to generate stable returns

New strategic initiatives to enhance tenant service offering to be announced later this year

Continue to look for attractive opportunities to construct prime investment properties in key gateway cities in Asia

Higher completions in mainland China expected in 2019, offset by lower contribution in Southeast Asia

The Group remains active in seeking development opportunities in mainland China and Southeast Asia, with a focus on pure residential developments with short payback periods

Net gearing expected to move modestly higher due to recent investments

Maintain disciplined approach in assessing opportunities

Pace of new investments may slow relative to prior two years

Gradually increase dividend per share over time as recurring earnings increase

INVESTMENT PROPERTIES DEVELOPMENT PROPERTIES FINANCIAL

Stable performance expected in 2019

342018 Results

Q & A

352018 Results

Appendix

2018 Results 36

HKL’s SHARE(’000 sq. ft NFA) OFFICE RETAIL HOTEL TOTAL1

One Exchange Square 570 - - 570

Two Exchange Square 507 - - 507

Three Exchange Square 322 - - 322

Exchange Square Podium - 49 - 49

The Forum 41 - - 41

Jardine House 635 45 - 680

Chater House 417 39 - 456

Alexandra House 325 48 - 373

Gloucester Tower 470 - - 470

Edinburgh Tower 338 - - 338

The Landmark Mandarin Oriental - - 143 143

York House 110 - - 110

Landmark Atrium - 255 - 255

Prince’s Building 404 146 - 550

Total 4,139 582 143 4,8642

Hong Kong Investment Properties Summary

1 Excluding residential properties in Hong Kong of 71,000 sq. ft. 2 Equivalent to 452,000 sq. m.

2018 Results 37

Singapore Investment Properties Summary

HKL’s SHARE(’000 sq. ft NFA) OFFICE RETAIL TOTAL

One Raffles Link 242 70 312

One Raffles Quay 441 1 442

MBFC 965 60 1,025

Total 1,648 131 1,7791

1 Equivalent to 165,000 sq. m.

2018 Results 38

Other Investment Properties Summary

HKL’s SHARE(’000 sq. ft NFA) OFFICE RETAIL HOTEL TOTAL

Beijing - 389 - 389

Macau - 98 151 249

Jakarta 1,036 92 - 1,128

Hanoi 75 8 - 83

Bangkok 27 61 - 88

Phnom Penh 198 112 94 404

Others 42 - 216 258

Total 1,378 760 461 2,5991

1 Equivalent to 241,500 sq. m.

2018 Results 39

Mainland China Development Properties Summary (1)

HKL’s SHARE

PROJECT CITY INTEREST YEAR OF ACQUISITION

SITE AREA(ha)

DEVELOPABLE AREA(m sq. m.)

CONSTRUCTED(m sq. m.)

UNDER CONSTRUCTION

(m sq. m.)

TO BE DEVELOPED(m sq. m.)

Central Park Beijing 40% 2001 40.2 0.13 0.13 - -

Yorkville South Chongqing 100% 2010 38.6 0.88 0.68 0.20 -

Yorkville North Chongqing 100% 2011 53.8 1.11 0.53 0.32 0.26

Bamboo Grove Chongqing 50% 2005 77.9 0.72 0.72 - -

New Bamboo Grove Chongqing 50% 2015 34.8 0.32 0.19 0.13 0.00

Landmark Riverside Chongqing 50% 2009 22.2 0.51 0.26 0.14 0.11

Central Avenue Chongqing 50% 2013 40.2 0.55 0.16 0.17 0.22

Bamboo Grove Riverside Chongqing 100% 2017 14.2 0.16 - 0.09 0.07

Lijia Landscape Chongqing 50% 2017 9.5 0.06 - 0.04 0.02

Liangjiang New Project Chongqing 50% 2018 4.1 0.03 - - 0.03

Yuelai Project Chongqing 100% 2018 8.3 0.13 - - 0.13Continued on next slide

2018 Results 40

Mainland China Development Properties Summary (2)

HKL’s SHARE

PROJECT CITY INTEREST YEAR OF ACQUISITION

SITE AREA(ha)



UNDER CONSTRUCTION

(m sq. m.)


WE City Chengdu 50% 2010 19.0 0.46 0.24 0.11 0.11

Yixinhu Project Chengdu 33% 2018 6.2 0.05 - - 0.05

Hangzhou Bay Hangzhou 30% 2017 38.6 0.23 - 0.02 0.21

Yue City Nanjing 33% 2017 19.9 0.09 - - 0.09

JL CENTRAL Nanjing 50% 2018 2.5 0.13 - - 0.13

Jiangbei Project Nanjing 50% 2018 11.5 0.13 - - 0.13

Parkville Shanghai 50% 2015 9.1 0.12 0.12 - -

Caohejing Project Shanghai 26.7% 2018 11.8 0.10 - - 0.10

Wuhan Dream Land Wuhan 50% 2017 16.4 0.24 - 0.04 0.20

Total 479 6.15 3.03 1.26 1.86

2018 Results 41

HKL’s SHARE

PROJECT INTEREST YEAR OF ACQUISITION

SITE AREA(ha)

DEVELOPABLE AREA

(m sq. m.)


UNDER CONSTRUCTION

(m sq. m.)


Lake Grande 100% 2015 1.8 0.05 - 0.05 -

Margaret Ville 100% 2017 0.5 0.02 - 0.02 -

Parc Esta 100% 2018 3.5 0.10 - 0.10 -

Tulip Garden 50% 2018 2.9 0.02 - - 0.02

Total 8.7 0.19 - 0.17 0.02

Singapore Development Properties Summary

2018 Results 42

HKL’s SHARE

PROJECT COUNTRY INTEREST YEAR OF ACQUISITION

SITE AREA (ha)



UNDER CONSTRUCTION

(m sq. m.)


Nava Park Indonesia 49% 2012 67.5 0.36 0.03 0.05 0.28

Anandamaya Residences Indonesia 40% 2013 1.3 0.05 0.05 - -

Asya Indonesia 33.5% 2016 67.6 0.37 - 0.02 0.35

Arumaya Indonesia 40% 2018 0.7 0.01 - - 0.01

Gatot Subroto Indonesia 50% 2018 1.9 0.04 - - 0.04

The ESSE Sukhumvit 36 Thailand 49% 2017 0.4 0.02 - 0.02 -

Nonthaburi Thailand 49% 2018 74.4 0.21 - - 0.21

King Kaew Thailand 49% 2018 47.7 0.08 - - 0.08

Other Southeast Asia Development Properties Summary (1)

Continued on next slide

2018 Results 43

Other Southeast Asia Development Properties Summary (2)

HKL’s SHARE

PROJECT COUNTRY INTEREST YEAR OF ACQUISITION

SITE AREA (ha)



UNDER CONSTRUCTION

(m sq. m.)


Two Roxas Triangle The Philippines 40% 1995 0.4 0.04 - 0.04 -

Mandani Bay The Philippines 40% 2013 19.6 0.47 - 0.03 0.44

Northpine The Philippines 40% 1996-2016 156.6 0.31 0.18 0.02 0.11

Bridgetowne The Philippines 40% 2018 1.8 0.06 - - 0.06

The Nassim Vietnam 50% 2014 0.6 0.02 0.02 - -

Thu Thiem River Park1 Vietnam 64% 2017 3.5 0.11 - - 0.11

29B NDC Vietnam 70% 2017 0.5 0.04 - 0.04 -

Others Malaysia & others n/a n/a 112.9 0.77 0.04 0.02 0.71

Total 557.4 2.96 0.32 0.24 2.401 Conditionally acquired

2018 Results 44

Consolidated Cash Flow - Operating Activities

FY2017 (US$m) FY2018 %YoY

876 Operating profit excluding non-trading items 1,089 24

(76) Net interest paid (127) 67

(137) Tax paid (172) 26

(549) Payments for Development Properties sites (809) 47

(298) Development expenditure on Development Properties projects (355) 19

1,018 Proceeds from Development Properties sales 1,328 30

94 Dividends received from joint ventures 139 48

(128) Others (489)* 282

800 604 -25* Includes two bidding deposits, totaling US$93m, which were returned post year-end.

2018 Results 45

FY2017* (US$m) FY2018 %YoYInvestment Properties

32,481 - Subsidiaries 33,712 4

4,332 - Joint ventures 4,803 11

36,813 38,515

Development Properties^

2,395 - Subsidiaries 2,299 -4

2,948 - Joint ventures 3,911 33

5,343 6,210 16

(1,275) Pre-sale proceeds (1,060) -17

(1,456) Others (1,731) 19

39,425 Gross assets (excluding cash) 41,934 6

Financed by:

36,876 - Total equity 38,370 4

2,549 - Net debt 3,564 40

39,425 41,934 6

Consolidated Balance Sheet

* Restated^ Includes contract assets

2018 Results 46

Gross Assets at 31 Dec 2018

76%

13%

11%

GROSS ASSETS BY LOCATION

Mainland China and MacauHong Kong Southeast Asia

88%

12%

GROSS ASSETS BY ACTIVITY

Investment Properties Development Properties

2018 Results 47

Properties Carrying Values at 31 Dec 2018

83%

10%

5%2%

Mainland China and Macau

Hong Kong Singapore

43%

25%

24%

8%

DEVELOPMENT PROPERTIES

NET INVESTMENT$5,150M#

Mainland China (for immediate sale)

Others

INVESTMENT PROPERTIES

TOTAL VALUE$38,515M#

Others

Singapore

Mainland China (for medium-term lease)

# The above analysis includes share of Joint Ventures & Associates

2018 Results 48

2017 1H 2018 2018

Hong Kong Office – Exchange Square 1 & 2 3.00% 3.00% 3.00%

Hong Kong Retail – Landmark Atrium 4.50% 4.50% 4.50%

Singapore Office – MBFC 3.25% 3.25% 3.25%

CAPITALISATION RATES

Investment Properties – Basis of Valuation

2018 Results 49

Treasury Management

LIQUIDITY AT 31 DEC 2018 (All figures in US$ billion)

Liquidity at 31 DEC 2017 HK$1 S$2 US$ RMB THB3 TOTAL

Committed lines 6.8 4.9 1.6 - 0.7 - 7.2

Gross debt 4.1 3.2 1.0 - 0.5 0.2 4.9

Available lines 2.7 1.7 0.6 - 0.2 (0.2) 2.3

Cash 1.6 - 0.3 0.5 0.5 - 1.3

Available liquidity 4.3 1.7 0.9 0.5 0.7 (0.2) 3.61 HK$ debt includes US$ debt swapped into HK$2 S$ debt includes HK$ debt swapped into S$3 THB debt is funded by uncommitted lines

2018 Results 50

Treasury Management

DEBT MANAGEMENT AND HEDGING POLICIES AT 31 DEC 2018

0

10

20

30

40

50

60

70

80

90

100

Type of Facilities Currency Interest Rate

Banks 56%

Bonds 44%

Fixed 51%

Floating 49%

HK$66%

S$ 19%

%

RMB 10%

1

THB 5%

2018 results...2018 results 4 hongkongland’s journey since 2016 increasing contribution from...

Documents