Hang Lung Properties Limited · HKEX:101
Hang Lung Properties — FY2020 Earnings Presentation
47 slides from Hang Lung Properties's earnings presentation, June 2021
Slide 1: 2020 Annual Results Presentation
Hang Lung Properties Limited 2020 Annual Results Presentation June 2021 HEARTLAND 66, WUHAN
Slide 2: Hang Lung Properties Limited
HANG LUNG PROPERTIES LIMITED (Stock code: 101 HK) Financial Highlights -----~--------~ P.7 ESG P.16 Mainland Portfolio —----—-—---~ P.31 Luxury Malls P34 Sub-luxury Malls P57 Mainland Projects Pipeline~---~~ P.66 Hong Kong Portfolio ~~~ P.73 HANG LUNG GRouP LIMITED P80 (Stock code: 10 HK) Hang Lung
Slide 3: Hang Lung 60 Anniversary Initiatives Key Milestones since 2H 2020
Hang Lung 60 Anniversary Initiatives Key Milestones since 2H 2020 Heartland 66, Wuhan We create compelling spaces that enrich lives f pa Q Mall opened on Mar 25, 2021 Wisse 4 Office tower opened in Nov 2020 We pursue sustainable growth by connecting our customers and communities FRAMAE + BF KE - SMO
Slide 4: Luxury Player at National Level
Luxury Player at National Level New Luxury Malls as Growth Drivers 2019A 2021F 2022F 2024F+ Luxury : : : : Westlake 6o*ett malls : : 9 > Parc 66% : Parc 66 (Outside: : Heartland 66 Heartland 66 : Heartland 66 : Olympia 66 : Spring City 66 = Center 66 = Forum 66 : Olympia 66 : Spring City 66 : Center
Slide 5: Projects for Pre-sale in 2021 / Financial Highlights
2 Projects for Pre-sale in 2021 HONG KONG sq Pre-sale of Redevelopment of Amoycan Industrial Centre Pre-sale of Apartments of Heartland 66 in Wuhan 6 — Hang Lung Properties Limited Financial Highlights > Resilient Performance: Mainland portfolio posted a respectable growth in rental revenue and oper
Slide 6: Financial Highlights
Financial Highlights 1-12/2020 | 1-12/2019 “For the year ended December 31,2020 | HK$M_ | HK$M___Change_ Revenue 8,973 8,852 @ 1% Property Leasing 8,911 8556 @ 4% | Property Sales 62 296 79% + ‘OperatingProfit §§# | | 6,481 SCART a Property Leasing 6,437 6,325 @ 2%+ Property Sales 44 162 W73% 7 Tota
Slide 7: Mainland Retail Revenue and Sales
Mainiand Retail Revenue #19% _ 2020 Retail Rental Revenue (nrwe):Luxury / Sub-luxury 79% / 21% _ (YoY Change) +41% Luxury malls +28% Overall malls -9% Sub-luxury malls -10% 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 Luxury malls: Grand Gateway 66, Plaza 66, Forum 66, Center 66 & Spring City 66
Slide 8: Hong Kong Rental Revenue and Dividend to Shareholders
Hong Kong Rental Revenue¥9% Dividend to Shareholders } Community malls (Korhill Plaza in Island East, Amoy Plaza in 2020 final dividend of HK nt r shar me as Kowloon East) were less affected > me aaa 59cenis per share, same last year > Tourist-centric malls (Fashion Walk and Hang Lung Centre in Caus
Slide 9: Financial Position
Financial Position At December 31, 2020 Investment Properties - Mainland China - Hong Kong Investment Properties under development Properties for sale Cash and bank deposits Net Debt Net Gearing Ratio Total Assets Shareholders’ equity Net Assets Attributable to Shareholders Per Share(HK$) 31/12/2020
Slide 10: ESG
ESG Strengthened Boards’ oversight of ESG issues Announced 2030 goals and targets to achieve sustainability leadership Secured HK$5.4 billion in sustainable finance in 2020 (up 440% from 2019) Hang Lung Properties Limited 16
Slide 11: Selected ESG Achievements in 2020
Selected ESG Achievements in 2020 Sustainability Governance ee ee Hang Lung Group received Sustainability and Social Responsibility Reporting Award in the Non-Hang Seng Index (Medium Market Capitalization) Category in the Hong Kong Institute of Certified Public Accountants’ Best Corporate Governance
Slide 12: 2030 Goals and Targets
2030 Goals and Targets OQ) We aspire to be become one of the most sustainable real estate companies in the world by 2030. As such, we set four goals and ten targets to be achieved under our sustainability framework. Green Building Certifications Priority 2030 Goals 2030 Targets Climate Reduce carbon
Slide 13: Energy Management & Greenhouse Gases Reduction
Energy Management &Greenhouse Gases Reduction Sustainable Finance 21 Q Reduced 10.6% electricity intensity by construction floor area by the end of 2019, compared to our 2015 baseline Electricity Intensity 2015 to 2019 @ °° Mainland China @@ Overall ‘@MN® Hong Kong 110.00 @ e e al £100.00 *™ i) = zg
Slide 14: Corporate Governance
Corporate Governance > MAINTAIN BOARD INDEPENDENCE Our People r 97% Average Board meetings attendance rate in 2019 55% © Executive Board Members # NED sINEDs \ Major BEST corporate governance practices Q 6regular Board meetings Q 4Audit Committee meetings Q Publication of financial results within 1
Slide 15: Sustainable Community Investment
Sustainable Community Investment > Our RESPONSE TO COVID-19 Q) Hang Lung Mathematics Awards « Abiennial mathematics research competition for secondary school students in Hong Kong which aims to stimulate creativity and encourage intellectual discovery in mathematics and science « Founded in 2004 by
Slide 16: Sustainable Community Investment (cont'd)
Sustainable Community Investment _(cont'a) > Chair Mr. Ronnie Chan awarded the 2018 Dwight D. Eisenhower Global Leadership Award by the Business Council for International Understanding > Chair Mr. Ronnie Chan awarded the Grand Bauhinia Medal (GBM), the highest honor bestowed, by the Government of th
Slide 17: Sustainable Community Investment (cont'd)
Sustainable Community Investment (cone Chan Family’s Philanthropy Rebuilding of Jianfu Palace Garden & The Hall of Rectitude Complex in Beijing QO Projects funded by the China Heritage Fund, a non-profit organization created by Chair Mr. Ronnie Chan to preserve and restore Chinese cultural relics Th
Slide 18: Mainland Portfolio
Mainland Portfolio > New Income Sources in 2020 Q Mall and Office tower at Spring City 66 (opened in Aug 2019) Q Office tower II at Center 66 (opened in Aug 2019) Q Conrad Shenyang at Forum 66 (opened in Sep 2019) Q New office tower at Heartland 66 (opened in Nov 2020) AE! Completion of Grand Gatewa
Slide 19: Total GFA
Total GFA Completed GFA (M sq ft) GFA by usage Upon completion of all (Exclude car parks) Hong Kong Portfolio 7 Mainland new projects Retail Mainland Portfolio 37.3 51% Grand Gateway 66 1.8 Hong Plaza 66 2.9 Kong Office Palace 66 2.0 33% Forum 66 5.3 Residential / Serviced Apartments Parc 66 2.8 16%
Slide 20: Luxury Malls on the Mainland
Luxury Malls on the Mainland GRAND GATEWAY PLAZA FORUM | CENTER SPRING CITY 66 66 _| 66 66 66 _ ee ee, Rental Revenue (Year ended Dec 31, 2020) - Mall RMB984M RMB 1,426M RMB95M RMB267M RMB183M - - Office . RMB606M RMB124M RMB 96M RMB37M RMB1M - Hotel = = RMB80M - - - Rental Revenue ce wise = #16% ||
Slide 21: Grand Gateway 66
Granp GATEWAY 66 S, é \ Li ro a [a] tn Ah | gt a Callison Architecture Inc., USA errr errr reer errr rrr errrrrrr rrr er rre rere errr reer eee errr eer JAwasps MIPIM Asia Awards 2020 - Best Refurbished Building China Shopping Center Distinguished Project Award 2009 New Landmark of Shanghai Commerci
Slide 22: Plaza 66
pee re EEO CP Pp L AZA 6 Video by our Chair to celebrate this remarkable (achievement J) q ai Lf 4 Hit Ria aoe 8 toes (Westen agcurtect a Kohn Pedersen Fox Associates, USA ‘GAwarps The Most Influential Commercial Landmark in Shanghai 2008 No. 1 Shopping Mall in Shanghai 2006 Top Ten Fashion Landmark
Slide 23: Plaza 66 Flagship Stores
PLAZA 66 FLAGSHIP STORES 1-12/2020 Retail Sales w (YoY change) 4 PARIS FENDI DIOR aves uewits CELINE BVLGARI Cartier CHANEL BERLUTI GIORGIO ARMANI <a Foes t Bona i; GOYARD 40 Hang Lung Properties Limited tome To Luxury Party on November 27, 2020 TA. Hang Lung Properties Limited 41
Slide 24: Plaza 66 Selected Tenants
& Selected Tenants @ 18% LVMH Ler FENDI CELINE baal! te : MONCLER BAIN & COMPANY (@) MAYER | BROWN Wesien agcurtect Retail Sales 1-12/2020 (YoY change) +9% Kohn Pedersen Fox Associates, USA Q LEED Certification (Gold Level) - Shopping Mall Office lobby LEED Certification (Gold Level) — Office
Slide 25: Forum 66 Shenyang
| | i Aailin CHENYA Forum 66 Luxury-led Specialty Mall in SHENYANG Opened in Dec 2020 4\ - "7 PS era Anniversary party Opened in Jan 2021 J BURBERRY CHANEL Cartier CELINE Chloé LANVIN PARIS 44 Hang Lung Properties Limited TASAKI BALENCIAGA GUCCI timepieces & jewellery Office Tower | aii Office porti
Slide 26: Center 66 Office Selected Tenants
Office -s® Selected Tenants ———__ Tower | Office Tower II fac S. waoyFaR ANT FINANCIAL, WN ® wrsusisH ELECTRIC Changes for the Better ! HANGouT fa > 1% multi-functional workspace launched in Sep 2020 Westen ARCHITECTS | Located at 8-9/F, Tower II Aedas Ltd (Phase 1 - Mall & OT 1) a LWK & Partners (H
Slide 27: The Center of Luxury in Wuxi
The “Center” of Luxury in WUXI Retail Sales 1-12/2020 (YoY change) Opened in Oct 2020 Opened in Jun 2020 Opened in Jul 2020 GUCCI LOEWE VERSACE Sahastnre Femagame- dent BURBERRY BLANCPAIN ROLEX VALENTINO 48 Hang Lung Properties Limited Newly opened in 2020 (@) VW, OMEGA CELINE CH NEL SAINTLAURENT =
Slide 28: Spring City 66
SPRING City 66 Office Tower (opened in Aug 2019) Mall (opened in Aug 2019) Westen ARCHITECT Kohn Pedersen Fox Associates, USA “warns a LEED Certification (Gold Level) - Shopping Mall & Office Tower a 2019 China Experience Commercial Real Estate Pilot Award - Popular Experiential Retail Mall The tall
Slide 29: Spring City 66 Premium Luxury Center in Kunming
1, . —— : MTVYT" SPRING CITY 66 Premium Luxury Center in KUNMING : = : 4 ‘ae ie eae : \ BE / I! F F —_= | : _ ous vuron Opened in Apr 2020 : F ah ltl aa | Opened in Jul 2020 Opened in Aug 2020 BALENCIAGA "| BOTTEGA VENETA SAINTLAURENT = (Grficer «= BVLGARI «rons VERSACE DIOR CELINE KIENZO PURSTENBER
Slide 30: Heartland 66 Office Tower and Mall
Office Tower (opened in Nov 2020) Mall (opened on Mar 25, 2021) Westen ARCHITECT Aedas Ltd (wasps a 2015 Cityscape Awards for Emerging Markets - Mixed-Use Project Award - Future LEED Pre-certification (Gold Level) 4 in-Wuhan BALENCIAGA BERLUTI CELINE #’ HUBLOT FRED LOEWE LONGCHAMP RIMOWA PARIS PUN o
Slide 31: Heartland 66 and Sub-luxury Malls on the Mainland
HEARTLAND 66 New Landmark in WUHAN YW, DIOR IWC MALL - UrcominG TENANTS GUCCI BURBERRY PIAGE] BOTTEGA VENETA VACHERON > CONSTANTIN SCHAFFHAUSEN lo,, SS, Bana CHAUMET PARIS 2) = Al, OMEGA JAEGER-LECOULTRE» ~ Ottice Tower > 1.6M sq ft GFA “a > 61 floors > Target Tenants Multinational Corporations, Fin
Slide 32: Palace 66
PALACE66 Pop-up store : Opened in Sep 2020 DESIGN ARCHITECT a Kohn Pedersen Fox Associates, USA uk... . Path vsat ve dash wvevedetesiatiiiehisttciateietens Retail Sales Make 1-12/2020 WARDS (YoY change) 2011 ICSC Asia Pacific Shopping Center Awards - Silver Award for Innovative Design - and Developm
Slide 33: Parc 66 Jinan
AEI to start in 2021 to pave the way for a stronger mix of brands Completion in phases from 2022 onwards | Q | } aes | | eat 60 | Westen ARCHITECT P&T International Incorporation (Architect of The HarbourSide) warps 2013 ICSC VIVA “Best-of-the Best” Awards - Sustainable Design/ Development MIPIM Asi
Slide 34: Riverside 66 Tianjin
RIVERSIDE 66 JAwarnns 2019 Excellence in Carbon Challenge MIPIM Asia Awards 2015 - Gold Award - Best Innovative Green Building and Best Retail Development The International Architecture Award 2015 a LEED Certification (Gold Level) 62 Hang Lung Properties Limited Retail Sales 1-12/2020 (YoY change) -
Slide 35: Olympia 66 Dalian
Wesien ancurtect a Aedas Ltd rer rere errr rer rr errr errr rrr rrrr errr rrr rere errr “Awarps a 2018 ICSC China Shepping Centre & Retailer Awards - Gold Award for Design & Development Excellence — New Developments a 2017 ICSC Asia-Pacific Shopping Center Awards - Gold Award for Design and Developm
Slide 36: Mainland Projects Pipeline
Mainland Projects Pipeline Location City status HEARTLAND 66 CENTER 66 SPRING CITY 66 WESTLAKE G6 | FORUM 66 Jinghan Avenue, Qiaokou District, Wuhan Provincial Capital of Hubei Province Renmin Zhong Road & Jiankang Road, Liangxi District, Wuxi Major City of _Jiangsu Province | Panlong District, Kunm
Slide 37: Heartland 66 and Center 66 Project Details
HEARTLAND 66... CENTERGG... DESIGN ARCHITECTS O Aedas Ltd (Phase 1 - Mall & OT 1) QO LWK & Partners (HK) Ltd (Phase 1 - OT II & Phase 2) MAIN CONTRACTORS Q China Construction 1st Engineering Division (Phase 1) Q China Construction Third Engineering Bureau (Phase 2) AWARDS O LEED Pre-certification (G
Slide 38: Spring City 66 and Westlake 66 Project Details
SPRING CITY 66... Total Gross Floor Area 6.7M sq ft DESIGN ARCHITECT O Kohn Pedersen Fox Associates, USA MAIN CONTRACTORS O China Construction Eighth Engineering Division (Mall) O Shanghai Construction Group (Office Tower) AWARDS QO) LEED Certification (Gold Level) - Shopping Mall & Office Tower O)
Slide 39: Forum 66 Project Details
FORUM 66 ._. DESIGN ARCHITECT O Kohn Pedersen Fox Associates, USA MAIN CONTRACTOR China Construction Third Engineering Bureau AWARDS QOLEED Certification (Gold Level) - Shopping Mall OLEED Certification (Gold Level) - Office Total Gross Floor Area 12.6M sq ft Completed: 5.3M sq ft afl : OTI- Office
Slide 40: Hong Kong Portfolio
73 Hong Kong Portfolio Leasing business: Q Community malls (Kornhill Plaza in Island East, Amoy Plaza in Kowloon East) were less affected Q Tourist-centric malls (Fashion Walk and Hang Lung Centre in Causeway Bay and Gala Place and Grand Plaza in Mongkok) were more affected Q Peak Galleria: 1° full
Slide 41: Kowloon East and Hong Kong Properties
9 Kowloon East Kornhill Plaza / Qlsland East Kornhill Apartments Usage: Retail / Office / Serviced Apartments Amoy Plaza Usage: Retail ABOUTHAI aos sow Q Mongkok @ Causeway Bay Fashion Walk Usage: Retail / Office Usage: Retail / Residential oo = ~ «aS a. aie Wie iti) teothaskee FEE ROASTER WED, THE
Slide 42: Hong Kong Property Development
Hong Kong Property Development Land acquisition at 37 Shouson Hill Road was completed on Feb 25, 2021 > Construction work of the re-development of 226-240 Electric Road and former Amoycan Industrial Centre are in progress as planned > As of Dec 31, 2020, we have 11 completed unsold units at 23-39 Bl
Slide 43: 23-39 Blue Pool Road
23-39 BLUE Poot RoaD Westen ARCHITECT a Kohn Pedersen Fox Associates, USA Perec cccccccccccccncccccesccscecsecces wasps a The International Architecture Award 2019 a The American Architecture Award 2018 a Chivas 18 Architecture Awards 2015 - Residential Architect of the Year (Hong Kong) a MIPIM Asia
Slide 44: Financial Highlights (Hang Lung Group)
Financial Highlights 1-12/2020 | 1-12/2019 For the year ended December 31, 2020 HK$M HKS$M Change Revenue 9,526 9,435 # 1% Property Leasing 9,464 9,139 @# 4% — Property Sales 62 296 WY 79% — Operating Profit 6,880 6,898 - Property Leasing 6,836 6,736 @# 1% — Property Sales 44 162 BY 73% — Total Divi
Slide 45: Financial Position (Hang Lung Group)
Financial Position At December 31, 2020 31/12/2020 | 31/12/2019 HK$M HK$M Change Investment Properties 173,235 168,218 @® 3% - Mainland China 110,793 | 101,639 @ 9% - Hong Kong 62,442 66,579 YB 6% Investment Properties under development 27,544 27,602 F Properties for sale 8,009 5,662 4 41% Cash and
Slide 46: Luxury Malls in Shanghai / Dividend to Shareholders
Luxury Malls in Shanghai Dividend to Shareholders GRAND GATEWAY 66 Sy PLAZA 66 (ena "a 5 Rental Revenue (Year ended Dec 31, 2020) - Mall RMB984M (415%) ||RMB1,426M (434%) - Office RMB243M (41%) ||RMB606M @ 4%) - Serviced Apartments | RMB127M (8%) ee Rental Revenue : #205 Change won 410% 20% Occupanc
Slide 47: Properties Directly Held by HLG
Properties Directly Held by HLG INVESTMENT PROPERTIES Grand 4 Wing Hong Street Q Cheung Sha Wan, Hong Kong Office building Gateway 66 Q Shanghai Office Tower | & Serviced Apartments Luen Cheong Can Centre Tai Hing Gardens Q Tuen Mun, Hong Kong Q Tuen Mun, Hong Kong Retail portion Q Tung Chung, Hong