IP IP Ea Earn rnings ings Anc Anchor hored ed 14% 14% Gr - PowerPoint PPT Presentation

IP IP Ea Earn rnings ings Anc Anchor hored ed 14% 14% Gr Growt owth h in in Gr Group oup Cor Core e Pr Profit ofit

The Wharf (Holdings) Limited 2016 Interim Results 10 Aug 2016 1

Ov Over ervie view Hong Kong IP China IP & DP Others Next Ba Back ckdr drop op  Leading Landlord with a Valuable & Resilient IP Profile  Superior Assets & Proven Management Driving IP Performance  Strong China/HK DP Recognition Lifted 1H16 Core Profit  Improving Sequential Performance (2Q16 vs 1Q16) 2

Over Ov ervie view Hong Kong IP China IP & DP Others Next Cons Co nsiste istent nt Co Core e IP IP Ope Operati rations ons Total Assets DP  IP Portfolio with Proven Track Record 13%  Total Assets $440B as of End-Jun 2016 $440 billion IP 72% Others 15%  IP Portfolio Increased by 3% to $319B, 72% of Total Incl. JV & Associates 3

Over Ov ervie view Hong Kong IP China IP & DP Others Next IP IP – Na Navi viga gating ting Th Through T ough Toug ough h Tim imes es IP Core Profit (HKD billion) $4.6B (+11%) 4.6 4.2 3.8 3.2 2.9  Uniquely Positioned to Withstand Market 1H12 1H13 1H14 1H15 1H16 Weakness Core Profit  IP Core Profit +11% to $4.6B China IP 8%  78% of Group Core Profit DP HKIP 15% $6.0 billion 70% 7% Others 4

Ov Over ervie view Hong Kong IP China IP & DP Others Next IP IP Sta Stabil bility ity Dri riven ven by by St Strong ong Ex Exec ecutio ution Total IP Revenue (HKD billion) $7.6B (+7%) HK China  1H16 Total IP (Excl. Hotel) Revenue 1.2 1.1 +7% to $7.6B 0.8  Proven Management Capabilities Driving Growth 0.5 6.4 0.5 6.1 5.6  Well Prepared To Balance Risks & 4.8 4.4 Opportunities 1H12 1H13 1H14 1H15 1H16 5

Over Ov ervie view Hong Kong IP China IP & DP Others Next Fi Fina nancia ncial l Hi High ghlig lights hts HK HKD Million llion 1H 1H16 16 1H15 1H 15 % % Ch Chg Group Revenue 20,021 17,906 +12% Operating Profit 8,075 7,475 +8% Core Profit** 5,972 5,258 +14% Profit Before IP Revaluation Surplus 6,200 3,793 +63%  Core Profit +14% to $6.0B Net IP Revaluation Surplus 525 3,165 -83% Profit after IP Revaluation Surplus 6,725 6,958 -3% Earnings Per Share (HK$) - Attributable to Shareholders 2.22 $2.30 -3% - Core** 1.97 $1.73 +14% Dividend Per share (HK$) $0.58 $0.55 +5.5% **Exclude IP revaluation surplus and exceptional items 6

Overview Hong ng Kong ng IP China IP & DP Others Next Age Agend nda Hong Kong IP China IP & DP Others Next 7

Overview Hong ng Kong ng IP China IP & DP Others Next HK HK R Ret etail ail – Ch Chal alle lenging nging HK Retail Sales (HKD billion) Title 1H 2H 494.5 493.2 475.2  2Q Sales & Tourist Arrivals Decline Stabilizing 241.6 243.6 229.6  Strong HKD; Weak Macro Environment to 219.7 (-10.5%) Impact Outlook  Still Too Early to See Light At the End of 2Q: -8.3% 252.9 249.6 245.6 219.7 the Tunnel 1Q: -12.5% 2013 2014 2015 2016 8

Overview Hong ng Kong ng IP China IP & DP Others Next St Stab abili ilizing zing Ret etail ail Sa Sale les s Dec ecline line  2Q16 Decline Significantly Narrowed HC Retail Sales (HKD billion) Title TS Retail Sales (HKD billion) 1H 2H 18.2 5.3 17.8 15.2 5.1 4.5 -14.7% -15.7% 2Q: -9.6% 2Q: -10.3% 5.2 16.8 16.0 15.6 4.7 4.4 13.3 3.9 1Q: -18.9% 1Q: -20.0% 2013 2014 2015 2016 2013 2014 2015 2016 9

Overview Hong ng Kong ng IP China IP & DP Others Next Mi Mixe xed d Ret etail Out ail Outlook look  Marco Environment; Foreign Currency Movements  Brexit Impact: Europe Currency & Political Uncertainty  Europe Terrorist Threats to Affect Tourism Trend  Lower Base Effect Started to Kick in; Diverse Tourist Trend  Mixed Impacts from Global Price Harmonization (Pricing vs Patronage)  Tenants’ Flexible Strategy Responding to Market Changes 10

Overview Hong ng Kong ng IP China IP & DP Others Next Co Conf nfirmed irmed Res esilienc ilience e Aga Again inst st He Headw adwinds inds Retail Revenue By Segment Others  Ongoing AEIs & Refining Tenant Mix 2% PH 6% 68% $4.6 billion  Powerful Promotions & Proactive (+5%) Expansion of Customers Base TS HC 24%  Stable Occupancy Cost & Solid Rental Reversion HC $3,108M +4%  Sustained Foot Traffic with Mild Growth TS $1,087M +10% PH $270M +3% 11

Overview Hong ng Kong ng IP China IP & DP Others Next HC HC – Val alue ue Cr Crea eation Miti tion Mitigates gates Reta etail il Pr Pres essur sure HC Retail Revenue (HKD billion) $3.1B (+4%) 1H 2H  Continued Tenant Mix Enhancement & OT Initiatives Freshening the Mall 2.9 2.9  Intact Pricing Power 2.5 2.1  Diversification & Balanced Mix 1.9 Countering Market Risk 1.5 1.4 1.1 3.1 3.0 2.8 0.9 2.4  OT Extension Building by 2H17, with 0.8 2.1 1.7 1.4 1.2 1.1 0.8 0.7 Diverse Dining Options 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 12

Overview Hong ng Kong ng IP China IP & DP Others Next TS TS – AE AEI Dr I Driv iving Gr ing Grow owth th TS Retail Revenue (HKD billion) $1.1B (+10%) 1H 2H  Renovation Completed by End-2015 1.0 1.0  Trade & Tenant Mix, F&B Choices Further Enriched 0.8 0.7 0.7 0.6 0.5  Post-AEI Value Creation Gradually 0.5 0.4 1.1 0.4 1.0 0.9 Unlocked 0.7 0.7 0.6 0.5 0.5 0.4 0.4 0.3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 13

Overview Hong ng Kong ng IP China IP & DP Others Next HC HC & TS & TS – Ten enant Mix ant Mix En Enha hanc ncement Cont ement Continue inues HC HC TS TS (Selected (S lected Bran rands) ds) (Selected (S lected Bran rands) ds) Expansion HK Debut Kowloon Debut NA Other Commitments 14

Overview Hong ng Kong ng IP China IP & DP Others Next HC HC & TS & TS – Cr Crea eative & Cu tive & Cult ltur ure-Orien Oriented ted Pr Promot omotions ions HC HC TS TS 15

Overview Hong ng Kong ng IP China IP & DP Others Next Of Offi fice ce – St Stab able P le Per erforma formance nce HK Office Revenue (HKD billion) $1.6B (+8%) 1H 2H  High Occupancy (97%-98%) 1.6 1.5 1.3 1.2  Positive Rental Reversion 1.1  Positive Spot Rental Growth 1.6 1.5 1.4 1.2 1.2 1.1 2011 2012 2013 2014 2015 2016 16

Overview Hong Kong IP Ch Chin ina a IP & DP DP Others Next Age Agend nda Hong Kong IP China IP & DP Others Next 17

Overview Hong Kong IP Ch Chin ina a IP & DP DP Others Next Ch Chin ina a IP IP – So Soli lid d Per erforma formance nce China IP Revenue (HKD billion) $1.2B (+7%) 1H 2H 1.2  Solid Growth Momentum (HKD) Despite 1.2 Currency Translation Impacts  IFS Pipeline to Add Future Growth 0.8 0.5 Impetus 1.2 1.1 0.5 0.3 0.8 0.3 0.2 0.2 0.5 0.5 0.1 0.3 0.3 0.3 0.2 0.2 0.2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 • In Jul 2010, Chongqing TS mall was closed for renovation and hence impacted the rental revenue during the period 18

Overview Hong Kong IP Ch Chin ina a IP & DP DP Others Next CDIF CD IFS S Ma Mall ll – St Stan and d Abo Above ve Co Comp mpetit etition ion 1H 1H16 16 CD CDIFS IFS Ma Mall ll Net Revenue (Net of Tax) RMB312M (+9%) Foot Traffic Growth +14% 16% Turnover Rent Portion Occupancy Cost* 15%  Strong Execution Driving Performance * Occupancy Cost = Retail Rent/Retail Sales  Solid Retail Revenue & Sales Growth CD CDIFS IFS Ret etail ail Sales les Growth owth  On Track to Meet Full-Year Target 1H16 RMB1.8B +13% 2016 Expect Double Digit Growth 19

Overview Hong Kong IP Ch Chin ina a IP & DP DP Others Next CD CDIF IFS S – Lar arge ge-Sca Scale & P le & Pow owerf erful ul Ma Mark rket eting ing Ev Even ents ts 20

Overview Hong Kong IP Ch Chin ina a IP & DP DP Others Next CD CDIF IFS S Of Offi fice ce – Lea easing Pr sing Progr ogres essing on T sing on Tra rack ck  Finest Premium Office Raises the Bar for Future Offices  36% Committed or ~100,000 s.m Leased  Commanding the Highest Rental Rates in CD 21

Overview Hong Kong IP Ch Chin ina a IP & DP DP Others Next Aw Awar ard d - Wi Winn nning ing CD CDIF IFS S Othe her r Key ey Aw Awards ds in in 1H 1H16 16 (Total l 16 A Awa wards ds) The Most Valuable Commercial Real Estate Developers of • China (China Commercial Real Estate Association) Best Operated Commercial Real Estate Project (China Commercial • Real Estate Golden Coordinate Awards) The Most Distinctive Experiential Mall (Chengdu Retailers Business • The 2016 VIVA Best-of-the- Quality Building Award 2016 Association) Best Design and Development Award (by ICSC) 2015-2016 Real Estate Design China Award – Top 10 Golden • Commercial Projects (China Real Estate Architects) Top 10 Retail Enterprises of the Year (Chengdu Retailers Business • Association) Niccolo Chengdu - Best Business Hotel in Southwest China (9 th TTG 22 China Travel Award)