Slide 1: FY2025 Interim Presentation Online Press Conference
FY2025 INTERIM PRESENTATION ONLINE PRESS CONFERENCE 28 February 2025 W E C R E AT E , W E A R E A R T I S A N S , W E A R E C S V
Slide 2: Strategic Direction
STRATEGIC DIRECTION SUSTAINABLE BUSINESS CASH FLOW FOCUS PRIORITIZATION PRIORITIZE ON REDUCING INDEBTEDNESS 2 2
Slide 3: Seven Measures to Reduce Indebtedness
SEVEN MEASURES TO REDUCE INDEBTEDNESS BUSINESS FINANCIAL 1 2 3 4 5 6 7 RESILIENT DP NCD FARMLAND IP STRONG AND CAPEX & OPEX TEMPORARY TREASURY MOMENTUM cvcvccvcvcvcv OPPORTUNITIES GROWING OPTIMIZATION DIVIDEND HALT MANAGEMENT On the back of Progress to Progress to unlock Increasing Significantly low
Slide 4: Financial Highlights
SECTION ONE FINANCIAL HIGHLIGHTS
Slide 5: Navigating Through a Challenging Environment
FINANCIAL HIGHLIGHTS NAVIGATING THROUGH A CHALLENGING ENVIRONMENT Core Operating Profit Segment Results Loss Attributable To Shareholders HK$4.2B HK$6.6B HK$4.4B -11% YoY One-off losses -18% YoY K11 IP Revaluation DP Impairment Others IP HK$1.6B HK$3.4B HK$1.0B +7%(1) YoY +5% YoY (2) G&A CAPEX Gross
Slide 6: Pre-Financing Cash Flow Close to Breakeven
FINANCIAL HIGHLIGHTS PRE-FINANCING CASH FLOW CLOSE TO BREAKEVEN Increased focus on operating cash flow with a priority on deleveraging HK$b Operation Deleveraging Cash Total Debt Total Perp -5.1 -0.9 Total Cash 151.6 146.5 36.3 35.4 28.0 21.9 Jun Dec Jun Dec Jun Dec (-4.9) 2024 2024 2024 2024 2024 2
Slide 7: Continuous Progress in Debt Reduction with Longer Average Maturity
FINANCIAL HIGHLIGHTS CONTINUOUS PROGRESS IN DEBT REDUCTION WITH LONGER AVERAGE MATURITY Declining interest costs on the back of rate cuts and lower debt balance Net Debt Stabilized With Slight Increase Due to Perp Total Debt and Short-term Debt Trending Down Buyback (HK$b) (HK$b) Perp 0.9 Total Debt
Slide 8: Continue to Focus on Deleveraging
FINANCIAL HIGHLIGHTS CONTINUE TO FOCUS ON DELEVERAGING Net gearing ratio(1) (1.3%) (0.6%) (0.2%) (2.1%) 56.3% 55.7% 55.5% 57.5% 55.0% Adjusted for Adjusted for perp buyback Adjusted for DP impairments and IP FV RMB depreciation changes Jun-24 Dec-24 Adjustments Actual figure Impact of DP Impact of p
Slide 9: Proactive Financial Management
SECTION TWO PROACTIVE FINANCIAL MANAGEMENT
Slide 10: Seven Measures to Reduce Indebtedness
PROACTIVE FINANCIAL MANAGEMENT SEVEN MEASURES TO REDUCE INDEBTEDNESS BUSINESS FINANCIAL 1 2 3 4 5 6 7 RESILIENT DP NCD FARMLAND IP STRONG AND CAPEX & OPEX TEMPORARY TREASURY MOMENTUM cvcvccvcvcvcv OPPORTUNITIES GROWING OPTIMIZATION DIVIDEND HALT MANAGEMENT On the back of Progress to Progress to unlo
Slide 11: Residential: Resilient Demand on the Back of Premium Brands
1 2 DEVELOPMENT PROPERTIES & NCD HONG KONG RESIDENTIAL: RESILIENT DEMAND ON THE BACK OF PREMIUM BRANDS July 2024 Jan 2025 The Pavilia Forest State Pavilia ✓ 279 units sold in total Gross contracted sales Best-selling project Gross contracted sales newly-launched on ✓ 95x over-subscribed ~HKD3.5b(2)
Slide 12: Solid Office Sales with Increased Momentum
1 2 DEVELOPMENT PROPERTIES & NCD HONG KONG SOLID OFFICE SALES WITH INCREASED MOMENTUM INCREASING DEMAND FOR PREMIUM OFFICES IN WEST KOWLOON Estimated Driving Time Thriving Cheung Sha Wan District – New core commercial area in West Kowloon 1 NCB Innovation Centre 8 mins 15 mins 24 mins 26 mins (888 L
Slide 13: Resilient PRC DP Sales in Challenging Markets
1 2 DEVELOPMENT PROPERTIES & NCD PRC RESILIENT PRC DP SALES IN CHALLENGING MARKETS OUTPERFORM MARKET KEY PROJECTS ACHIEVE OUTSTANGING RESULTS Multiple policies Premium Best Efficient have been New 1st tier World market implemented locations strategies concurrently brand Guangzhou Guangzhou Guangzhou
Slide 14: Abundant Saleable Resources
1 2 DEVELOPMENT PROPERTIES & NCD ABUNDANT SALEABLE RESOURCES FY2025 + Landbank (GFA) 3.5m sqft Hong Kong Farmland Reserves (Site Area) x Plot 16.8m sqft Ratio Pavilia Forest State Theatre WCH Phase 5 8 Castle Road Ma Sik Road (4A-4P Seymour Road) (JV with China Merchants Shekou) Landbank (GFA) Mainl
Slide 15: Northern Metropolis an Important Development Opportunity
3 DEVELOPMENT PROPERTIES HONG KONG FARMLAND NORTHERN METROPOLIS AN IMPORTANT DEVELOPMENT OPPORTUNITY Increased clarity and certainty solidify value of NWD’s farmland resources Farmland (Selected) Status Proposed PR Attr. GFA (FT2) Total attr. GFA (FT2) 1. High-end professional services and logistics
Slide 16: Continuous Cooperation with SOE and Progress
3 DEVELOPMENT PROPERTIES HONG KONG FARMLAND CONTINUOUS COOPERATION WITH SOE AND PROGRESS Dec 2023 May 2024 Jun 2024 Nov 2024 Dec 2024 2 3 Strategic 16 Strategic MOU Cooperation Cooperation Lung Tin Tsuen Ma Sik Road Agreement (Yuen Long South) (Fanling North) Signing • Total GFA: ~720k FT2 • Total G
Slide 17: Additional Opportunities on Landbank Replenishment
3 DEVELOPMENT PROPERTIES HONG KONG FARMLAND ADDITIONAL OPPORTUNITIES ON LANDBANK REPLENISHMENT (1) Short Term Medium Term Long Term Converted (Landbank in 1-2 years) (Landbank in 3-5 years) (Landbank in 5+ years) Photos of land plot 1 4 5 14 selective and non- exhaustive 16 唐人新村 唐人新村 欖口村 504K FT2 (山
Slide 18: Continuous Tenant Optimization Riding on Mega Events
4 INVESTMENT PROPERTIES HONG KONG CONTINUOUS TENANT OPTIMIZATION RIDING ON MEGA EVENTS HIGH SPACE PRODUCTIVITY DRIVES TENANT UPGRADE K11 MUSEA – Cultural-Retail Destination Luxury Brands Expanding Footprint at K11 MUSEA Jul Jul 2024 2025 Audemars Piguet Balenciaga Brunello Cucinelli Loewe Prada Stor
Slide 19: Resilient HK Offices Leasing
4 INVESTMENT PROPERTIES HONG KONG RESILIENT HK OFFICES LEASING 83 King Lam Street (NWD HQ2) Other offices occupancy rates (as of 31 Dec 2024) K11 Atelier King’s Road K11 Atelier VD ~93% ~99% • Total GFA: ~1.2m sq ft Diversified Tenant Nationality Distribution • Two 23-storey office buildings • Leasi
Slide 20: K11 Pipeline: Beginning of the Ramp-Up Phase
4 INVESTMENT PROPERTIES HONG KONG PIPELINE K11 PIPELINE: BEGINNING OF THE RAMP-UP PHASE 11 SKIES: One-Stop Largest Entertainment, Retail and Commerce Landmark at the heart of GBA T2 SKYTOPIA, a world-class travel landmark 3 Grade A office towers 11 SKIES K11 ATELIER 11 SKIES Airportcity Link Enterta
Slide 21: Successful Tenant Upgrades Strengthen Occupancy Resilience
4 INVESTMENT PROPERTIES PRC SUCCESSFUL TENANT UPGRANDS STRENGTHEN OCCUPANCY RESILIENCE STABLE OCCUPANCY RATE1 KEY PROJECTS TO LAUNCH IN COMING YEAR PRC Key IPs Occupancy Rate SHANGHAI K11 ART MALL 96% WUHAN HANKOU K11 ART MALL 90% K11 ECOAST ✓ K11’s first flagship SHENYANG K11 SELECT 84% project in
Slide 22: Significantly Lower Capex in 1HFY25
5 CAPEX & OPEX OPTIMIZATION SIGNIFICANTLY LOWER CAPEX IN 1HFY25 CAPEX Optimization HK$b 34.8 37.0 Significantly Lower in FY24 and 1HFY25 19.3 4.5 14.8 <13 2H: 7.3 1H: 7.5 1H: 4.9 FY21A FY22A FY23A (1) FY24A (1) FY25 (1) CAPEX Optimization Initiatives ✓ Capex for DP with short cash conversion cycle •
Slide 23: Opex Optimization to Reduce G&A
53. CAPEX & OPEX OPTIMIZATION OPEX OPTIMIZATION TO REDUCE G&A A Group-wide Continuous Improvement Program to drive down G&A cost and staff costs OPEX Optimization (HK$m) 1HFY25 G&A expenses - 9% YoY 2,418 2,036 1,845 ✓ Corporate function and team structure optimization ✓ Restructuring of business un
Slide 24: Temporary Dividend Halt
66. TEMPORARY DIVIDEND HALT TEMPORARY DIVIDEND HALT Remain committed to returning capital as part of creating long-term shareholder value Prudent capital management to facilitate deleveraging Improve financial flexibility Optimize capital structure Dividend with reference to core operating profit an
Slide 25: Prudent Treasury Management
76. TREASURY MANAGEMENT PRUDENT TREASURY MANAGEMENT Pre-financing cash flow close to breakeven Reduction in short term debt and total debt PRIORITIZE ON REDUCING INDEBTEDNESS 25
Slide 26: Appendix
APPENDIX
Slide 27: DP and IP Results Under Challenging Environment
DP AND IP RESULTS UNDER CHALLENGING ENVIRONMENT HK$m Hong Kong Mainland China A B 944 929 1,745 1,615 1,299 IP 1,202 556 455 Revenue: Investment HK$2.6bn (-4.3%) Properties Segment results: HK$1.8bn (+0.2%) Revenue Segment results Revenue Segment results 1H24 1H25 1H24 1H25 C D 6,644 1,734 5,495 DP
Slide 28: Generating Value Through Sustainability Initiatives
ESG INTEGRATION GENERATING VALUE THROUGH SUSTAINABILITY INITIATIVES Environment Social Enhancing portfolio resilience and protecting asset value through climate risk assessments Improving employee resilience through bespoke mental health and asset-level adaptation and mitigation plans and wellbeing
Slide 29: Disclaimer
DISCLAIMER Important notice The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, inducement, invitation, recommendation or