Slide 1: 2021 Annual Results Presentation
100% Powered by Renewable Energy Spring City 66, Kunming 2021 Annual Results Presentation January 2022
Slide 2: Contents
Contents FY2021 Annual Results Highlights P.3 ESG Highlights P.9 Mainland China Portfolio P.33 Mainland China Office Portfolio P.46 Mainland China Projects Under Development P.48 Hong Kong Portfolio P.53 Appendix P.59 • HLP – Financial Highlights and Position P.60 • HLG – Financial Highlights and Po
Slide 3: FY2021 Annual Results Highlights
FY2021 Annual Results Highlights Hang Lung Properties (101.HK) Hang Lung Group (10.HK) Rental Revenue Underlying profit Rental Revenue Underlying profit HK$10,321M HK$4,365M HK$10,919M HK$2,991M +16% yoy +4% yoy +15% yoy +6% yoy HLP – Dividend per share HLG – Dividend per share Total DPS HK78 cents
Slide 4: Rental Revenue in FY2021
Rental Revenue in FY2021 Mainland China Rental Portfolio Hong Kong Rental Portfolio HLP Mainland China rental revenue (RMB mn) HLP HK rental revenue (HK$mn) and YoY change (%) and YoY change (%) Rental rev Rental rev YoY change YoY change (RMB mn) (HK$mn) (%) (%) 3,500 FY21: +23% YoY 40% 2,500 5% 2H
Slide 5: Mainland China Rental Revenue
Mainland China Rental Revenue Mainland China Retail Portfolio Mainland China Office Portfolio HLP retail rental revenue from Mainland China HLP office rental revenue from Mainland China (RMB mn) and YoY change (%) (RMB mn) and YoY change (%) Retail rental rev YoY change Office rental rev YoY change
Slide 6: Tenant Sales: Solid Growth throughout FY2021
Tenant Sales: Solid Growth throughout FY2021 YoY change Mainland China Tenant Sales YoY change (%) (in RMB) 80% Luxury malls 60% (+55% YoY) Overall 40% (+51% YoY) 20% Sub-luxury malls (+20% YoY) 0% -20% -40% FY2017 FY2018 FY2019 FY2020 FY2021 Overall Luxury Malls Sub-luxury Malls Change Like-for-lik
Slide 7: Property Sales in FY2021 and Launching Pipeline in FY2022
Property Sales in FY2021 and Launching Pipeline in FY2022 • Key launches in FY2021 Scheduled Period Sales Period Project Location Proceeds for Booking 1H2021 23-39 Blue Pool Road Hong Kong HK$316M (note) 1H2022F 2H2021 皓日 The Aperture Hong Kong HK$1,083M FY2023F Note: Net of stamp duty and cash reba
Slide 8: Key Milestones and Achievements on Sustainability in 2021
Key Milestones and Achievements on Sustainability in 2021 1H21 Established Key Milestones in Refreshed Disclosed 18-month budget on Vision, Mission, and Values 36 Strategic ESG KPIs sustainable spending tied to performance and compensation Rolling out of annual Announced Employee Engagement Commitme
Slide 9: ESG Highlights
ESG Highlights • In December 2021, we announced our 25 x 25 Sustainability Targets. They elaborate on our 2030 goals and targets announced in December 2020 and provide quantifiable measures to achieve across the business over the next four years • 36 strategic ESG KPIs assigned to departments in 202
Slide 10: Selected ESG Achievements
Selected ESG Achievements Key accolades Key awards Corporate Governance Excellence Award – Hang Seng Index Constituent Companies from The Chamber of Hong Kong Listed Companies and The Centre for Corporate Governance and Financial 4-star performance rating in 2021 Policy of Hong Kong Baptist Universi
Slide 11: New Vision, Mission, and Values
New Vision, Mission, and Values Launched an updated expression of corporate purpose in March 2021 to reaffirm our values and our commitment to sustainability leadership We create compelling spaces Vision “Ithisamnewso excited to launch VMV. I think that that enrich lives we should look at them very
Slide 12: Board Engagement and Diversity
Board Engagement and Diversity Highly engaged ▪ 6 regular Board meetings/year (100% attendance) ▪ 4 Audit Committee meetings/year (100% attendance) ▪ 4 meetings of Audit Committee members with external auditor without the presence of management Board diversity of Hang Lung Properties as of Dec 31, 2
Slide 13: Enhanced ESG Governance and Accountability
Enhanced ESG Governance and Accountability We have strengthened our ESG governance to support our ambition of achieving sustainability leadership. Hang Lung Sustainability Governance Structure Key Recent Developments Nov 2020 - the Boards issued a Joint Statement on Oversight and Management of Envir
Slide 14: 2030 Sustainability Goals and Targets
2030 Sustainability Goals and Targets In December 2020, we announced our overarching ambition to become one of the most sustainable real estate companies in the world by 2030, supported by four goals and ten targets to achieve by 2030. 4 Priority 4 Goals 10 Targets Climate Reduce carbon footprint in
Slide 15: 25 x 25 Sustainability Targets
25 x 25 Sustainability Targets In December 2021, we announced our 25 x 25 Sustainability Targets. These elaborate on the 2030 goals and targets and provide quantifiable measures to achieve across the business over the next four years. No. of Priority Topics addressed Targets Climate 7 • Greenhouse g
Slide 16: 36 Strategic ESG KPIs in 2021 Mapped to Priorities
NUMBER OF CATEGORY STRATEGIC TOPICS ADDRESSING 36 Strategic ESG KPIs • Net Zero carbon building guidance and potential pilot ESG KPIs in Climate • Energy consumption measurement and monitoring • GHG (scopes 1 and 2) emissions reduction for building operations 2021 Mapped Resilience 12 • GHG (scope 3
Slide 17: Commitment to SBTi's Net Zero Standard
Climate Resilience: Commitment to SBTi’s Net Zero Standard In late December 2021, we became one of Asia's first real estate companies to make a commitment to the Science-Based Targets initiative’s (SBTi’s) Net Zero Standard. We commit to reducing our greenhouse gas emissions in alignment with SBTi’s
Slide 18: Climate Resilience: Greenhouse Gas Mitigation
Climate Resilience: Greenhouse Gas Mitigation Scopes 1 and 2 GHG Emissions Scopes 3 GHG Emissions • Annual GHG mitigation plan with inputs • Embodied carbon: 10% reduction in from all properties approved by Vice Chair embodied carbon intensity for new • 2030 target to reduce GHG emissions developmen
Slide 19: CO2-e Emissions Intensity
Climate Resilience: Greenhouse Gas Mitigation 2021 Progress against Scope 1 and 2 targets for 2025 and 2030 0.09 0.08 20% 0.07 Energy Efficiency CO2-e Emissions Intensity (tCO2/m2) 2021 0.06 40% 0.05 Grid decarbonization 70% 2025 0.04 0.03 0.02 2030 0.01 0.00 2018 2019 2020 2021 2022 2023 2024 2025
Slide 20: Climate Resilience: Physical Risks and Climate Adaptation
Climate Resilience: Physical Risks and Climate Adaptation Key Findings ▪ Partnered with a climate risk consultancy to complete property-specific physical • Significant rainfall flood exposure at multiple properties climate risk assessments across our portfolio • Significant typhoon exposure at all p
Slide 21: Spring City powered 100% by renewable energy
Climate Resilience: Spring City powered 100% by renewable energy • In Dec 2021, we announced that Spring City 66 in Kunming is now fully powered by renewable energy. • Spring City 66 is also the first commercial complex in Yunnan Province to achieve net-zero carbon emissions from electricity. • We h
Slide 22: Resource Management: Green Building Certifications
Resource Management: Green Building Certifications Westlake 66 Received • Received our first LEED >74% (Building Design and Construction Core and Shell 33 green building construction floor Development v4) Platinum certifications Level pre-certifications for two area with green office towers in our W
Slide 23: Resource Management: Key Achievements and Plans
Resource Management: Key Achievements in 2021 Plans in 2022 and beyond Energy • Enhanced the measurement and verification • Will complete the installation of smart energy of energy consumption data meters at mainland properties in early 2022 • Installed smart energy meters at most • Target achieving
Slide 24: Wellbeing: Employee Wellbeing
Wellbeing: Employee Wellbeing Learning and Development Engagement • Delivered over 94,649 training hours in 2021 through Academy 66, covering integrity, health and safety, customer service, people development, compliance, • Conducted a company-wide employee etc. engagement survey in May 2021 to obta
Slide 25: Wellbeing: Response to COVID-19
Wellbeing: Response to COVID-19 Employees Customers and Community • Support the health and safety of our staff in Hong • Offer e-shopping coupons for fully vaccinated customers in Kong and encourage them to be vaccinated by Hong Kong offering two extra days of paid vaccination leave and e-shopping c
Slide 26: Wellbeing: Community Investment
Wellbeing: Community Investment Hang Lung Mathematics Hang Lung X HKYWCA Hang Lung As One Awards (HLMA) “Love·No·Limit volunteer teams • Founded in 2004, the biennial HLMA aims to • Partnered with the Hong Kong Young • Organized 133 volunteer activities empower secondary school students in Hong Wome
Slide 27: Community Investment
Community Investment Chair Mr. Ronnie Chan awarded the Grand Chair Mr. Ronnie Chan awarded the 2018 Dwight Bauhinia Medal (GBM), the highest honor D. Eisenhower Global Leadership Award bestowed, by the Government of the Hong Kong by the Business Council for International Understanding Special Admini
Slide 28: Community Investment
Community Investment Rebuilding of Jianfu Palace Garden & Hang Lung Center for Real Estate, The Hall of Rectitude Complex in Beijing Tsinghua University, Beijing • Projects funded by the China Heritage Fund, a non-profit • The Hang Lung Center for Real Estate serves as an organization created by Cha
Slide 29: Chan Family's Philanthropy
Chan Family’s Philanthropy Harvard T.H. Chan School of Public Health University of Southern California • The Morningside Foundation, founded by Chair Mr. Ronnie • Chair Mr. Ronnie Chan and his wife Mrs. Barbara Chan made Chan and Non-Executive Director of Hang Lung Group a USD20 million gift to the
Slide 30: Sustainable Transactions: Sustainable Finance
Sustainable Transactions: Sustainable Finance Arranged sustainable Accounted for 30% finance amounting to Categories of Eligible Green Projects of total debts & available (with each category defined in Green Finance HK$11.7 billion facilities Framework) in 2021 (as of Dec 31, 2021 for HLP) • Green B
Slide 31: Sustainable Transactions: Collaboration with Suppliers and Tenants
Sustainable Transactions: Collaboration with Suppliers and Tenants In 2021, we made significant progress in advancing sustainability across our business by engaging suppliers and tenants Collaboration with Suppliers Collaboration with Tenants • For procurement in operations, we embedded ESG • Planne
Slide 32: Deepening our Mission of Sustainable Growth
Deepening our Mission of Sustainable Growth 28 Strategic ESG Hang Lung’s commitment to KPIs in 2022 sustainable growth combines both financial and ESG considerations. Seeking By combining the two at the heart Validation for our SBTi Targets of our strategy, we build long-term 2022 Plans value for th
Slide 33: Mainland China Portfolio
Mainland China Portfolio Hang Lung Properties Limited 33
Slide 34: Luxury Malls on the Mainland
Luxury Malls on the Mainland Grand Plaza Forum Center Olympia Spring City Heartland Gateway 66 66 66 66 66 66 66 City Shanghai Shanghai Shenyang Wuxi Dalian Kunming Wuhan Rental Revenue (Year ended Dec 31, 2021) - Mall RMB1,163M RMB1,782M RMB106M RMB373M RMB164M RMB269M RMB153M - Office - RMB629M RM
Slide 35: Sub-luxury Malls on the Mainland
Sub-luxury Malls on the Mainland Palace 66 Parc 66 Riverside 66 City Shenyang Jinan Tianjin Rental Revenue (Year ended Dec 31, 2021) - Mall RMB179M RMB305M RMB168M Rental Revenue Change 2% 3% same (YoY in RMB) Occupancy (at Dec 31, 2021) - Mall 90% 93% 86% Hang Lung Properties Limited 35
Slide 36: Grand Gateway 66, Shanghai
Grand Gateway 66 l Above Xujiahui Subway Station, Puxi, Shanghai Tenant Sales 1-12/2021 • Selected Tenants opened in 2021 56% yoy • Other selected tenants • Tenant Mix by Leased Area Fashion & Others 20% • Key Award Recognitions accessories ✓ Asia Pacific Property Awards 2021-2022 – Best 46% Commer
Slide 37: Plaza 66, Shanghai
Plaza 66 l Nanjing Xi Road, Puxi, Shanghai Tenant Sales 1-12/2021 • Selected Tenants 37% yoy • Tenant Mix by Leased Area • Key Award Recognitions Fashion & ✓ The Most Influential Commercial Landmark in Shanghai accessories 132 Others 14% 2008 65% Tenants ✓ No. 1 Shopping Mall in Shanghai 2006 F&B 1
Slide 38: Forum 66, Shenyang
Forum 66 l Qingnian Street, Shenhe District, Shenyang Tenant Sales 1-12/2021 • Selected Tenants 33% yoy • Tenant Mix by Leased Area Others 30% Fashion & accessories 140 24% Tenants F&B 25% • Key Award Recognitions Lifestyle/Entertainment 21% ✓ LEED Certification (Gold Level) – Shopping Mall Others
Slide 39: Center 66, Wuxi
Center 66 l Renmin Zhong Road & Jiankang Road, Liangxi District, Wuxi Tenant Sales 1-12/2021 • Selected Tenants opened since 2H 2020 77% yoy • Tenant Mix by Leased Area Others 24% Fashion & accessories 215 F&B 24% 27% Tenants • Key Award Recognitions ✓ LEED Certification (Gold Level) - Phase 1 Life
Slide 40: Olympia 66, Dalian
Olympia 66 l Wusi Road, Xigang District, Dalian Tenant Sales 1-12/2021 • Selected Tenants opened since 2021 89% yoy • Key Award Recognitions • Tenant Mix by Leased Area ✓ 2018 ICSC China Shopping Centre & Retailer Awards - Gold Award for Design & Development Excellence – New Others 29% Developments
Slide 41: Spring City 66, Kunming
Spring City 66 l Dongfeng Dong Road, Panlong District, Kunming Tenant Sales 1-12/2021 • Selected tenants 79% yoy • Tenant Mix by Leased Area Others 23% ✓ Powered 100% by renewable energy Fashion & accessories 298 F&B 20% ✓ The first commercial complex in Yunnan 32% Tenants Province to achieve net-z
Slide 42: Heartland 66, Wuhan
Heartland 66 l Jinghan Avenue, Qiaokou District, Wuhan Mall Opened in • Tenant Mix by Leased Area • Selected tenants opened since 2021 March 2021 Others 23% Fashion & accessories 284 Tenants F&B 25% 34% Lifestyle/Entertainment 18% Others include Beauty, Jewelry &Watches, Supermarket etc. • Key Award
Slide 43: Palace 66, Shenyang
Palace 66 l Zhongjie Road, Shenhe District, Shenyang Tenant Sales 1-12/2021 11% yoy • Selected Tenants • Tenant Mix by Leased Area • Key Award Recognitions ✓ 2011 ICSC Asia Pacific Shopping Fashion & Others 19% Center Awards - Silver Award for accessories Innovative Design and Development 44% 222 o
Slide 44: Parc 66, Jinan
Parc 66 l Quancheng Road, Lixia District, Jinan Tenant Sales 1-12/2021 • Selected Tenants 20% yoy • Tenant Mix by Leased Area Fashion & Others 21% accessories 350 40% Tenants F&B 24% • Key Award Recognitions Lifestyle/Entertainment 15% ✓ 2013 ICSC VIVA “Best-of-the Best” Awards - Sustainable Design
Slide 45: Riverside 66, Tianjin
Riverside 66 l Xing’an Road, Heping District, Tianjin Tenant Sales 1-12/2021 • Selected Tenants 28% yoy • Tenant Mix by Leased Area Others 28% • Key Award Recognitions Fashion & accessories 239 F&B 21% ✓ 2019 Excellence in Carbon Challenge Tenants 29% ✓ MIPIM Asia Awards 2015 - Best Innovative Gree
Slide 46: Mainland China Office Portfolio
Mainland China Office Portfolio PLAZA 66 l Shanghai FORUM 66 l Shenyang 97% occupancy at Dec 31, 2021 92% occupancy at Dec 31, 2021 • Key tenants • Key tenants 315 19 guest rooms floors and suites Hang Lung Properties Limited 46
Slide 47: Mainland China Office Portfolio
Mainland China Office Portfolio CENTER 66 l Wuxi SPRING CITY 66 l Kunming HEARTLAND 66 l Wuhan 100% Powered by Renewable Energy 88% occupancy at Dec 31, 2021 71% occupancy at Dec 31, 2021 57% occupancy at Dec 31, 2021 • Key tenants • Key tenants • Key tenants ➢ Launch of HANGOUT, 1st multi- ➢ Launch
Slide 48: Mainland China Projects Under Development
Mainland China Projects Under Development Heartland 66 Center 66 Spring City 66 Westlake 66 Forum 66 Cost Distribution of 5 Upcoming Projects Location Jinghan Avenue, Renmin Zhong Road Dongfeng Dong Road, Bai Jing Fang area, Qingnian Street, Qiaokou District, & Jiankang Road, Panlong District, Xiach
Slide 49: Mainland China Projects Pipeline
Mainland China Projects Pipeline 2022 2023 2024 2027 Targeted Pre-sale of Targeted Pre-sale of Targeted Handover of Targeted Completion of • Heartland Residences • Grand Hyatt Residences • Center Residences • Forum 66 in phases: Kunming - Offices / • Center Residences • Grand Hyatt Residences Kunmin
Slide 50: Projects Under Development: Heartland, Wuhan
Projects Under Development HEARTLAND 66 l Wuhan • Key Award Recognitions ✓ LEED Certification (Gold Level) – Shopping Mall & Office Tower ✓ 2015 Cityscape Awards for Emerging Markets - Mixed-Use Project Award - Future ✓ LEED Pre-certification (Gold Level) – Serviced Apartments Total GFA 7.5M sq ft T
Slide 51: Projects Under Development: Center 66 and Spring City 66
Projects Under Development CENTER 66 l Wuxi SPRING CITY 66 l Kunming • Key Award Recognitions ✓ Powered 100% by renewable energy ✓ LEED Pre-certification (Gold Level) - Phase 2 ✓ The first commercial complex in Yunnan Province to achieve net-zero ✓ LEED Certification (Gold Level) - Phase 1 carbon em
Slide 52: Projects Under Development: Westlake and Forum
Projects Under Development WESTLAKE 66 l Hangzhou FORUM 66 l Shenyang • Key Award Recognitions ✓ LEED Pre-certification (Platinum Level) – Office Towers 1&2 • Key Award Recognitions ✓ LEED Certification (Gold Level) – Shopping Mall ✓ LEED Pre-certification (Gold Level) – Mall & Towers 3 - 6 ✓ LEED C
Slide 53: Hong Kong Portfolio
Hong Kong Portfolio Hang Lung Properties Limited 53
Slide 54: Hong Kong Rental Performance
Hong Kong Rental Performance Hong Kong Rental Revenue Hong Kong Occupancy (%) Rental rev (HK$mn) FY2021: HK$3,382mn 4,000 110% (-7% YoY) Resi.&S.A.: 7% of total Resi.&S.A.: 100% 7% of total 97% 3,000 Office: 90% 34% of total Office: 87% 34% of total 80% 2,000 70% 72% Retail: 60% 1,000 59% of total R
Slide 55: Hong Kong Investment Properties (Completed)
Hong Kong Investment Properties (Completed) Standard Chartered Bank Peak Galleria Fashion Walk Hang Lung Centre Building @ Central @ The Peak @ Causeway Bay @ Causeway Bay Kornhill Plaza / Gala Place Grand Plaza Amoy Plaza Kornhill Apartments @ Mongkok @ Mongkok @ Kowloon Bay @ Island East Hang Lung
Slide 56: Hong Kong Investment Properties (Under Development)
Hong Kong Investment Properties (Under Development) 228 Electric Road* l North Point • Jointly developed with Hang Lung Group Limited Usage: Grade A office tower / Retail area on podium floors Total GFA: 105,000 sq ft Expected completion: 2022 ✓ LEED Pre-certification (Platinum Level) – our FIRST Aw
Slide 57: Hong Kong Property Development
Hong Kong Property Development • Pre-sale of 皓日 The Aperture commenced in Dec 2021. Total 123 residential units were pre-sold. Revenue is expected to be reported in 2023 upon completion and the units are handed over to buyers • One Blue Pool Road house was sold in June 2021. Sales revenue and profit
Slide 58: Hong Kong Property Development
Hong Kong Property Development 23-39 Blue Pool Road l Happy Valley No. of Unsold Units 8 semi-detached houses 2 semi-detached houses For Sale For Lease Key Award Recognitions ✓ The International Architecture Award 2019 ✓ The American Architecture Award 2018 ✓ Chivas 18 Architecture Awards 2015 - Res
Slide 59: Appendix
Appendix Hang Lung Properties Limited 59
Slide 60: Hang Lung Properties – Financial Highlights
Hang Lung Properties – Financial Highlights 1-12/2021 1-12/2020 Property Property Property Property Total Leasing Sales Total (HK$M) Leasing Sales Revenue 10,321 - 10,321 8,911 62 8,973 - Mainland China 6,939 - 6,939 5,277 - 5,277 - Hong Kong 3,382 - 3,382 3,634 62 3,696 Operating Profit 7,462 (91)
Slide 61: Hang Lung Properties – Financial Position
Hang Lung Properties – Financial Position 31/12/2021 31/12/2020 At December 31, 2021 HK$M HK$M Change Investment Properties 177,456 164,322 8% - Mainland China 117,649 103,708 13% - Hong Kong 59,807 60,614 1% Investment Properties under development 22,399 27,544 19% Properties for sale 10,79
Slide 62: Investment Property Portfolio: HLP
Investment Property Portfolio: HLP Completed (M sq ft) GFA GFA by usage Geographical Split of Total GFA: 58M sq ft Hong Kong Portfolio Mainland China Portfolio 7M sq ft 37.3M sq ft (Exclude car parks) Office Retail Hong Shanghai Grand Gateway 66 1.8 33% Plaza 66 2.9 51% Kong 44M sq ft Shenyang Palac
Slide 63: Hang Lung Group – Financial Highlights
Hang Lung Group – Financial Highlights 1-12/2021 1-12/2020 Property Property Property Property Total Leasing Sales Total (HK$M) Leasing Sales Revenue 10,919 - 10,919 9,464 62 9,526 - Mainland China 7,402 - 7,402 5,694 - 5,694 - Hong Kong 3,517 - 3,517 3,770 62 3,832 Operating Profit 7,898 (91) 7,807
Slide 64: Hang Lung Group – Financial Position
Hang Lung Group – Financial Position 31/12/2021 31/12/2020 At December 31, 2021 HK$M HK$M Change Investment Properties 186,582 173,235 8% - Mainland China 124,962 110,793 13% - Hong Kong 61,620 62,442 1% Investment Properties under 22,399 27,544 19% development Properties for sale 10,811 8,0
Slide 65: Investment Property Portfolio: HLG
Investment Property Portfolio: HLG Note: Properties held via HLP are excluded from this session 9 Wing Hong Street Luen Cheong Can Centre Tai Hing Gardens Grand Gateway 66 Cheung Sha Wan, Hong Kong Shanghai Tuen Mun, Hong Kong Tuen Mun, Hong Kong • Retail portion • Office building • Office building
Slide 66: Grand Gateway 66, Shanghai
Grand Gateway 66 l Above Xujiahui Subway Station, Puxi, Shanghai Office Tower I • Key tenants Rental Revenue Occupancy (Year ended Dec 31, 2021) (at Dec 31, 2021) RMB247M 98% 2% yoy Serviced Apartments Rental Revenue Occupancy (Year ended Dec 31, 2021) (at Dec 31, 2021) RMB137M 91% 8% yoy Mall (
Slide 67: End of Presentation
End of Presentation Disclaimer 1. All information and data are provided for information purposes only. All opinions included herein are based on information available as of the date hereof and are subject to change without notice. There is no guarantee, representation or warranty provided for accura