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The Wharf (Holdings) Limited 1 The Wharf (Holdings) Limited Established 1886 December 2011 Wheelock Square Shanghai

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Page 1: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 1

The Wharf (Holdings) Limited

Established 1886

December 2011

Wheelock Square Shanghai

Page 2: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 2

Wharf Corporate Profile

Established in 1886 with a distinguished history of “Building for Tomorrow”

Primary focus is in Properties which represented 91% of business assets as at 30.6.11

Strategic differentiation is manifested in the success of Harbour City and Times Square, which represented 64% of operating profit for 1H11

Growth - target to have 50% of Group’s business assets in Mainland China in medium term; 39% at 30.6.11; landbank at 12.4M s.m., with next milestone at 15M s.m.

Page 3: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 3

Wharf Corporate Structure

Wheelock and Company Limited(HKEx Stock Code: 0020.HK)

The Wharf (Holdings) Limited(HKEx Stock Code: 0004.HK)

Non PropertyBusinesses*

Hong KongProperties

* Include Modern Terminals, HK Air Cargo Terminals, Marco Polo Hotels, & Communication, Media and Entertainment (CME)

China Properties

Page 4: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 4

Corporate Business Structure

Mr. Peter Woo, GBS, JPChairman

Non PropertyHK & China IP

Mr. Stephen NgDeputy Chairman & MD

Mr Douglas WooVice Chairman & MD

Mr. Ricky WongMD

Ms. Doreen LeeSenior MD

Mr. Stephen NgChairman

Mr Andrew ChowChairmanMr TY Ng

Vice Chairman & Senior MD

HK DP China DP

Wharf ChinaDevelopment

Limited

WharfDevelopment

Limited

Wharf ChinaEstates Limited

Page 5: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 5

China – Phases of economic development

Experimentation(1978 - 1992)

Execution & Growth(1992 - today)

The Future(today + 20 years)

Special economic zones in coastal cities as China’s nationwide infrastructure support was inadequate

In 1992, Shanghai economy was opened & other cities swiftly followedEconomic growth supported by infrastructure buildup to link up the country

High-speed rail grid will ‘shrink’ the countryDynamic urbanization expected, with domestic demand as key growth engine

0

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10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100%

2%

4%

6%

8%

10%

12%

14%

16%

GDPYoY Growth

RMB’B YoY GrowthChina GDP (1992-2010)

0

5,000

10,000

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20,000

25,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100%

2%

4%

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Disposable Incomer per CapitaYoY Growth

Disposable Income Per Capita of Urban Households (1996-2010)RMB YoY Growth

Page 6: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 6

China – Rail grid will change lifeHigh speed rail will reduce travelling time between major Chinese cities by 60% to create the one-day living sphere … …

Beijing

Wuhan

Guangzhou

ShanghaiChengdu

Source: CB Richard Ellis

Page 7: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 7

China – Expand with metropolitan zones

The nine city clusters account for 52% of population & 74% of GDP*

“There will be 8 mega cities by 2025 as compared with 2 in 2005, housing 41% of China’s higher income class living.

Overall, China is heading towards a dispersed urbanization pattern with midsized and small cities.

These cities, together with megacities, will drive future growth.”

McKinsey research 2009

* Source: CB Richard Ellis

Page 8: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 8

Hong Kong – A unique position

A unique city driven by China’s growth and its own characters ......

China HK Economic Partnership continues

HK companies has facilitated China’s economic growth since 1978, initially along the Southern Coastal Provinces before moving to inland Provinces

HK is the servicing & financing platform for China

Foreign direct investments into China.

Chinese companies expanding abroad, tourism, and offshore RMB centre

Other special characters

4 cornerstones - zero import tax, wide merchandize selectivity, genuine & authenticity and confidentiality

A free port, low & simple taxation regime; no inherent tax and no sales tax

Any overhang of political risks from the 1997 sovereignty change have disappeared

Page 9: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 9

Hong Kong – Favorable China’s policy

The 12th Five-Year Plan (2011-2015) offer ample opportunities for HK companies…

Key theme is to change the economic development model for China:

Moving up the value chain; reducing reliance on low cost manufacturing

Stimulating domestic demand as a key driver for GDP growth

Expanding contribution of the service sector by 4%-points

Continuing urbanization

Dedicated a chapter in supporting Hong Kong:

CEPA continues (Closer Economic Partnership Arrangement)

Leverage Hong Kong's servicing platforms to facilitate China's economic growth

Develop Hong Kong as the offshore RMB centre and an international asset management centre

Page 10: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 10

Hong Kong Properties

The HK investment portfolio represents 8.3% HK’s retail sales ….

Ms Doreen LeeSenior MD

With a combined value of HK$119B at 30.6.11, Harbour

City and Times Square represented 47% of the business

assets of the Group, and generated 64% of operating profit

In 1H11, retail sales at Harbour City and Times Square

accounted for an unmatched 8.3% share of HK’s total retail

sales, up from 7.9% in 1H10

Page 11: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 11

Hong Kong Properties – Harbour City

Building for Tomorrow… from a wharf godown to a shopping mall...

NowEarly 80’s

Page 12: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 12

A record performance……

Property Value (excl. Hotels) at 30.6.11: HK$87.1B

Attributable GFA (s.f.)

1H11(HK$M)

1H10(HK$M)

% Change

FY10(HK$M)

Retail 1,948,000 1,723 1,437 +20% 2,928Office 4,435,000 787 774 +2% 1,553Serviced Apartments 670,000 145 132 +10% 275Hotel and Club 1,364,000 531 488 +9% 1,056

Total: 8,417,000 3,186 2,831 +13% 5,812

Hong Kong Properties – Harbour City

Page 13: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 13

Largest mall in town, representing 75% of retail area of Canton Road

Retail generated 54% of HC’s revenue in 1H11 from only 23% of HC’s area

Retail sales: +35% for 10/2011 YTD, outperformed HK market by 10% points

Continues to provide a captivating “shoppertainment” experience to shoppers through a finely calibrated trade mix and innovative marketing campaigns

Harbour City generated 6.2% of HK retail sales, envy of others……

Hong Kong Properties – Harbour City

Page 14: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 14

Occupancy and spot rent trended up strongly during 1H11

Occupancy at 30.6.11: 95%

Lease renewal retention rate: 73%

Occupancy at 30.6.11: 94%

Favorable rental growth

Office Serviced Apartments

Strong performance from other components……

Hong Kong Properties – Harbour City

Page 15: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 15

Hong Kong Properties – Times Square

Building for Tomorrow… from a tram depot to a shopping mall...

Late 80’s Now

Page 16: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 16

A record performance……Property Value at 30.6.11: HK$32B

Attributable GFA(s.f.)

1H11(HK$M)

1H10(HK$M)

% Change

FY10(HK$M)

Retail 936,000 587 512 +15% 1,076

Office 1,033,000 228 226 +1% 457

Total: 1,969,000 815 738 +10% 1,533

Hong Kong Properties – Times Square

Page 17: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 17

Times Square is the most successful vertical shopping mall in HK…...

Full occupancy

Retail generated 72% of TS’s revenue in 1H11 while represents only 48% of area

Tenant mix on the atrium floors fine-tuned to uplift the shopping ambiance

Occupancy at 30.6.11: 96%, strong growth in spot rents in 1H11

Lease renewal retention rate: 28%as some tenants moved to fringe locations

Vacated space rapidly absorbed by new tenants, including relocation from Central / Wanchai

Retail Office

Hong Kong Properties – Times Square

Page 18: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 18

Other Hong Kong Properties

Victoria Peak is the most sought after residential address in HK

Mr Ricky WongMD

Mr Douglas WooVC & MD

The Peak Portfolio (400,000 s.f.):

Existing developments – 1H11 occupancy: 90%+, strong rental growth

Mt Nicholson - master layout plan & GBP approved

No. 1 Plantation Road, Mountain Court, Chelsea Court and 77 Peak Road all have redevelopment potential

Other developments:

One Mid-town, Kowloon Godown, Yau Tong Godown, Yau Tong projects, Wharf T&T Square, are at different development stages

Page 19: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 19

Other Hong Kong Properties – Mt Nicholson

Mt Nicholson services the top 1-2% of most affluent in Asia…

A unique, rare and high quality development

Private half-mile access road offers ultimate privacy

Rare low density site on HK Island

Ultimate top social status & recognition

World class designers and architects

Buyer types – Upgraders and Villa as status symbol (HK & China), Pied-a-terre (SE Asia & China)

Project details

50:50 JV with Nan Fung; attributable GFA: 162,000 s.f.; completion: Q4 2014

Page 20: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 20

China East:ChangzhouWuxiSuzhouShanghaiHangzhouNingbo

Others:DalianTianjinWuhanChangsha

China West:ChengduChongqing

Foshan

China Properties – Building for tomorrow

Wharf China has expanded to 5 regions,13 cities, 40+ projects…

…with a team of over 1000 professionals.

Page 21: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 21

China Properties – Building for Tomorrow

PRC assets reached 39% of Group assets at 6/2011... ...

Acquired sites in 1H11 in Changsha, Hangzhou, Suzhou & Foshan (attributable GFA: 2M s.m.) for RMB13BLand bank: +17% to 12.4M s.m. at 6/2011, spanning across 13 cities; on track to next milestone of 15M s.m.The RMB required for o/s land payments has been fully coveredContinue to develop local execution knowhow

ChinaPortfolio

Investment Properties

Development Properties

Wheelock Square completed in 2010 is leasing well Completed IPs were valued at HK$13B at 6/2011Development progress of 5 IFCs as planned

Contracted sales to 10/2011: RMB11.2B, 750,000 s.m. were soldNet order book increased to RMB18.1B for 1.2M s.m.2011 completion target: 550,000 s.m. (1H11: 160,000 s.m.)

Page 22: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 22

China Properties – Landbank

Hotel3%

Office15%

Retail8%

Residential74%

Region Attributable GFA s.m.

East 6.3M

West 4.3M

Others 1.8M

TOTAL 12.4M

China landbank on course for the 15M s.m. milestone……

12.4M s.m. landbank split by cities RMB 65.4B cost split by cities

GFA by Land UseGFA by Region

Changzhou8%

Hangzhou7%

Shanghai5%

Suzhou16%

Wuxi15%

Chongqing14%

Chengdu21%

Others14%

Changzhou4%

Hangzhou12%

Shanghai13%

Suzhou12%

Wuxi6%

Chongqing10%

Chengdu20%

Others23%East: 51%

West: 35%

East: 47%

West: 30%

Others: 14% Others: 23%

Page 23: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 23

China Development Properties

Mr Andrew ChowChairman

Mr T Y NgVice Chairman

1H11 Turnover: +31% to HK$1,343M (FY10: HK$3.6B)

1H11 Operating Margin: 42%

Contracted Sales to 10/2011: RMB11.2B

2011 completion target: 550,000 s.m. (1H11: 160,000 s.m.)

New Growth Engine… …

Page 24: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 24

New projects City Product Attributable GFA sold (sm) ^

Attributable Proceeds

(RMB’M) ^Average Price(RMB psm) ^

Times City Suzhou High-rise 29,000 410 13,900

The U World Chongqing High-rise 32,000 715 22,100

Peaceland Cove Tianjin High-rise 38,000 494 13,100

Magnificent Tianjin High-rise 28,000 402 14,300

Projects previously launched City Product Attributable

GFA sold (sm) ^Attributable

Proceeds(RMB’M) ^

Average Price(RMB psm) ^

Xiyuan Shanghai Medium-rise 17,000 890 52,700

Times Riverside, Times 8 Chengdu High-rise / office 41,000 752 18,500

Times Palace Changzhou High-rise / villas 85,000 696 8,200

Ambassador Villa Suzhou Villas 7,000 337 51,100

Int’l Community Chongqing High-rise 72,000 494 6,900

China Development Properties – Sales

Sales diversity to minimize concentration risk……

^All data for 1H2011

Page 25: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 25

4.6

8.815.0*

0

5

10

15

2009 2010 2011

RMB'B

PRC property progress as planned……

China Development Properties

550281

2,100*1,600*

0

500

1000

1500

2000

2500

2010 2011 2012 2013

000's.m.

2010-2013 Project Completions2009-2011 Contracted Sales

*provisional data

Page 26: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 26

China Investment Properties

IP portfolio will grow when 5 IFCs will be rolled out (2013-2016)

Suzhou IFC (2016)

Shanghai Wheelock Square

Chengdu IFC (2013)

Chongqing IFC (2015)

Wuxi IFC

Changsha IFC (2016)

Suzhou IFC

Page 27: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 27

Recurrent rental earnings boosted by Wheelock Square……

Turnover: +34% to HK$317M (FY10: HK$470M)

Operating profit: +39% to HK$193M

Over 70% office area at Shanghai Wheelock Square leased, with latest monthly rental rates at over RMB400psm

Chongqing TS transformed into a modern & stylish shopping mall in 3Q2011

Dalian TS registered a 38% growth in retail sales p.s.m. with 100% occupancy

Shanghai TS performed satisfactorily with 93% retail and 96% office occupancy

China Investment Properties

1H11 Performance

Page 28: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 28

China Investment Properties

Recurrent earning base will substantially increase from 2013……

379 379665

1,100

2,300

379*

0

500

1000

1500

2000

2500

2010

2011

2012

2013

2014 ~

2016

000's.m.

IP Portfolio GFA^ growth over time

^ Includes office / residential areas that may be for sale* Includes Shanghai Wheelock Square, Times Squares in Shanghai, Chongqing and Dalian

Chengdu IFC 2013-15

Chongqing IFC 2014-15

Wuxi IFC By 2015

Suzhou IFC By 2016

Changsha IFC By 2016

Completion timetable

Page 29: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 29

Mainland Chengdu Chongqing Wuxi Suzhou Changsha

GDP Growth 10.3% 15.0% 17.1% 13.1% 13.2% 15.5%

Population (’M) 1,341 11 29 6 6 7

Retail sales growth 18.3% 24.0% 18.5% 18.6% 18.7% 19.9%

19,000 21,000 18,000 28,000 33,000 23,000Urban disposable income per capita (RMB)

% change 7.8% 11.7% 11.3% 10.9% 10.9% 12.7%

Investment in fixed asset (RMB’B)

27,814 426 693 299 362 319

2010 Economic Indicators

Untapped potential to be realized……

Source: National Bureau of Statistics (2010 data) , Statistics Bureaus of various cities (2010 data)

Page 30: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 30

China Investment Properties – Wheelock Square

Tallest Landmark office tower in Puxi at 270 metres…

Brand new landmark office tower with GFA of 114,000 s.m.

The tallest building in Puxi (270-metre) overlooking Jing’an Park

Currently, over 80% committed; latest monthly rental rates at over RMB400psm.

High floors will command higher rates

Tenants include multinationals and major corporations

Awarded “Best Business Centre” by MIPIM Asia Awards 2011 in 9/2011

Page 31: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 31

China Investment Properties – IFC Series

5 IFCs to be rolled out in 2013-2016……Chengdu IFC – GFA 439,000 s.m.*

The Group’s next flagship IP in the busiest pedestrian shopping area of Chengdu.

Comprises retail, Grade A offices, 5-star hotel and luxury residences

Construction of Phase 1 (retail and an office tower) is scheduled for completion in mid 2013

Chongqing IFC – GFA 223,000 s.m.*

50:50 JV with COLI; located in the new CBD of Chongqing

Comprises up-market retail, Grade A offices, 5-star hotel and serviced apartments

Construction is underway; full completion in 2015

* GFA represents plot-ratio GFA and excludes commercial areas below ground

Page 32: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 32

Changsha IFC – GFA 700,000 s.m.*Acquired in 1/2011, a prime site in the city centreComprise 3 towers (2 in excess of 300m in height) atop a 250,000 s.m. retail podiumComprises upscale retail, Grade A offices, 5-star hotel & luxury apartments. Construction will start in late 2011.

5 IFCs to be rolled out in 2013-2016……

China Investment Properties – IFC Series

Suzhou IFC - GFA 351,000 s.m.*Tallest skyscraper in Suzhou overlooking Jinji LakeComprises Grade A offices, 5-star hotel and luxury apartments

Wuxi IFC – GFA 280,000 s.m.*Tallest skyscraper in Taihu Plaza, Wuxi’s new CBDComprises Grade A offices, 5-star hotel and luxury residences

* GFA represents plot-ratio GFA and excludes commercial areas below ground

Page 33: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 33

Other Non-Property Businesses

Strong recurring income base……

Mr. Stephen NgChairman

MTL

Hotel

CME

Page 34: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 34

Marco Polo Hotels

10 operating Marco Polo hotels in Asia Pacific region

1H11 Revenue: +11% to HK$593M (FY10: HK$1.2B)

Awarded “Best International Hotel Management Group of China” by China Hotel Starlight Awards in 3/2011

The managed Marco Polo Foshan in Lingnan Tiandi will open in 2011

From 2012 onwards, new Marco Polo hotels in Changzhou, Chengdu, Chongqing, Manila, Guiyang, Suzhou and Wuxi will come on stream

A solid performer……

Page 35: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 35

Modern Terminals

The first container terminal operator in HK, 33% market share today……

1H11 Revenue: +6% to HK$1,620M (FY10: HK$3.3B)

1H11 Throughput

Kwai Tsing (HK): +1% to 2.7M TEUs

Taicang (YRD): +9% to 685K TEUs

DCB (PRD): +19% to 343K TEUs

Leveraging on HK base, expand into Pearl River Delta and Yangtze River Delta, the 2 largest manufacturing hubs in PRC:

PRD: Da Chan Bay (DCB)

YRD: Taicang International Gateway

Page 36: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 36

Communication, Media & Entertainment

i-CABLE

CABLE TV is the first multi-channel Pay TV service in HK; subscribers' base exceeds 1.1M

1H11 Revenue: +9% to HK1,051M (FY10: HK$2.0B)

Wharf T&T

Wharf T&T is the second largest fixed line operator and the first and only comprehensive ICT service provider in HK focusing on the business sector

1H11 Revenue: +6% to HK$879M (FY10: HK$1.7B)

Steady results……

Page 37: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 37

1H11(HK$M)

1H10(HK$M)

Turnover 9,745 8,622Operating Profit 4,980 4,516

Profit attributable to equity shareholders 14,302 10,892EPS (HK$) 4.84 3.85EPS before Property Revaluation Surplus (HK$) 1.11 1.49

DPS (HK$) 0.36 0.36

As at 30.6.11

As at 31.12.10

Total assets 281,835 242,225

Total business assets 257,070 220,237Net debt 42,494 32,689

Total equity 193,961* 170,649NAV per share (HK$) 61.59 59.22Net debt to total equity 21.9% 19.2%

* Wharf raised HK$10 billion equity through a rights issue in March 2011

Financial Highlights – 1H2011

Page 38: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 38

FY10(HK$M)

FY09(HK$M)

Turnover 19,380 17,553Operating Profit 9,372 8,554Profit attributable to equity shareholders 35,750 19,256EPS (HK$) 12.98 6.99EPS before Property Revaluation Surplus (HK$) 2.87 2.84DPS (HK$) 1.00 1.00

As at 31.12.10

As at 31.12.09

Total assets 242,225 190,461Total business assets 220,237 168,576Net debt 32,689* 21,432Total equity 170,649* 135,588NAV per share (HK$) 59.22 46.68Net debt to total equity 19.2% 15.8%

*Wharf raised HK$10billion equity through a rights issue in March 2011

Financial Highlights – FY2010

Page 39: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 39

% of Group Operating Profit% of Group Total Business Assets

3%

14%

16%67%

HK Properties (excl. Hotels) China PropertiesLogisticsCME & Others

1%

57%34%

8%

HK$257.1B

* China assets: 39% as at 30.6.11 (Properties: 34%, Logistics: 5%)

HK$5.0B

Financial Highlights

Hong Kong properties remain the driver; China is growing……

Page 40: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 40

Net debt 30.6.11 (HK$’M)

31.12.10 (HK$’M)

Wharf (excluding below subsidiaries) 33,503 23,376

MTL 11,054 9,932

HCDL (1,694) (172)

i-CABLE (369) (447)

Total: 42,494 32,689

Gearing (net debt to total equity*) 21.9% 19.2%

*Wharf raised HK$10B equity through a rights issue in 3/2011

Prudent financial management with 21.9% gearing……

Financial Highlights

Page 41: The Wharf (Holdings) Limited · The Wharf (Holdings) Limited 2 Wharf Corporate Profile Established in 1886 with a distinguished history of “Building for Tomorrow” Primary focus

The Wharf (Holdings) Limited 41

Strong recurring income base

Investment Properties – Harbour City, Times Square, China IPs

Logistics and Hotels

Multiple sources of funding and revenue

Equity - HK$10B rights issue in 3/2011

Debt - HK$6.2B CB in 6/2011

- S$670M bonds (HK$4.1B) in July / October 2011

At 30.6.11, cash balance: HK$20B, undrawn bank facilities: HK$23B

China contracted sales of RMB11.2B (HK$14B) up to 10/2011

Financial Highlights

Multiple sources of income and funding……

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The Wharf (Holdings) Limited 42

End of PresentationWheelock and Company Limited [HKEx Stock Code: 0020.HK]The Wharf (Holdings) Limited [HKEx Stock Code: 0004.HK]

Disclaimer

All information and data are provided for information purposes only. All opinions included herein constitute Wharf’s judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries and affiliates hereby disclaim (i) all express, implied, and statutory warranties of any kind to user and/or any third party including warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information and data contained herein.

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The Wharf (Holdings) Limited 43

US$ 1 = HK$ 7.80* HK$ 1 = US$ 0.128

US$ 1 = RMB 6.365^ RMB 1 = US$ 0.157

1 Sq foot = 0.0929 Sq metre 1 Sq metre = 10.764 Sq feet

* - Under the Linked Exchange Rate System of Hong Kong, HK Dollar is fixed with US Dollar

^ - The mid-rate as announced by The People’s Bank of China on 20.10.11

Conversion Reference

Appendix