Henderson Land Development : Final Results Investor Presentation

Stock Code: 12

FY2018 Annual Results

March 2019

"Lumina Shanghai",Xuhui Riverside

"HZentre",Tsim Sha Tsui, HK

"Lumina Guangzhou",Haizhu Square Station

Huaihai Middle Road Project, Shanghai

Disclaimer

This presentation has been prepared by Henderson Land Development Company Limited (the"Company"or"HLD")solely for information purposes and does not constitute an offer, recommendation or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever.

The information contained in this presentation has been taken from sources deemed reliable by the Company. However, no representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained herein and none of the Company and/or its affiliated companies and/or their respective employees and/or agents accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this presentation or as to any information contained in this presentation remaining unchanged after the issue thereof.

This presentation contains forward-looking statements. Statements that are not historical facts, including statements about theCompany'sbeliefs andexpectations are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update, modify or amend this presentation or to otherwise notify the recipient if any information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Forward-looking statements involve inherent risks, uncertainties and assumptions. The Company cautions you that if these risks or uncertainties ever materialise or the assumptions prove incorrect, or if a number of important factors occur or do not occur, theCompany'sactual results may differ materially from those expressed or implied in any forward-looking statement.

You acknowledge and agree that HLD and/or its affiliated companies and/or their respective employees and/or agents has/have no responsibility orliability (express or implied) whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this presentation and neither the Company, its affiliated companies nor their respective employees or agents accepts any liability for any error, omission or misstatement, negligent or otherwise, in this presentation and any liability in respect of the presentation or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expressly disclaimed.

The photographs of those reference building models shown in this document aim at presenting to analysts and fund managers etc. preliminary information of ten major development projects within the portfolio of Henderson Land Development Company Limited and are for the reference of analysts and fund managers etc. only. They are not purported to promote the sale of any residential property. The reference building models of these development projects are the preliminary ideas generated by the architectural designers. The developers reserve the right to make modifications and changes according to the actual circumstances without prior notice. The overall design, elevation, layout, construction materials or colour scheme of these development projects may be changed from time to time and all the building plans and elevation plans relating to them are subject to the final approval by relevant Government authorities.

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Contents
Page
FY2018 Annual Results Highlights	4-6
Sales of Property Interests	7
Property Development Business	8-19
Property Investment Business	20-24
Hong Kong and China Gas	25-26
Strong Financial Position	27
Underlying Earnings Per Share vs Dividends Per Share	28
Prospects	29
Annexes	30-41

Audited

Property Development(Attributable Pre-tax Underlying Profit)

Gain fromSales of Property Interests(Attributable Post-tax Underlying Profit)ψ

Property Leasing(Attributable Pre-tax Net Rental Income)

HKCG^- Share of Net Profit(after tax)(utility and energy business only)

Profit attributable to Shareholders

Underlying profit(excluding fair value change of investment properties)

Reported profit

Earnings per share(HK$)(adjusted for the effect of bonus issue in 2018)

Based on underlying profit

Based on reported profit

Dividend per share (HK$)

Interim dividend

Final dividend

Issue of bonus shares

13,762-4%

*Figures are restated under the adoption of new accounting standards, being HKFRS 9 and HKFRS 15, effective on 1 Jan 2018. In particular, the revenue from the sale of completed properties held for sale and gain on disposal of investment properties during the accounting period is recognized on the basis that control over the ownership of the property has been passed to the buyer during the current accounting period.

Allthe figures represent the Group's attributable share of contributions (before taxation) from its subsidiaries, associates andjoint ventures in Hong Kong and mainland China.

# If the fair value change of the related properties is included, the attributable pre-tax reported profit contribution from property sales for FY2018 should be HK$6,709mn (FY2017: HK$6,440mn) ^ HKCGrefers to HLD's listed associate, The Hong Kong and China Gas Company Limited, in which HLD owns 41.53% equity interest.

§Including the pre-tax underlying profit contribution of HK$6,334mn arising from the disposal of investment properties, and a net gain of HK$598mn on transfer of two wholly-owned subsidiaries to a 50% owned JV.

ΨSales of Property Interests include gain on transfer(after tax) of subsidiaries holding land sites and hotel properties, as well as subsidiaries holding investment properties, the gain on disposal of investment properties and cumulative fair value gains (net of tax)) relating to the investment properties disposed of during the year in the aggregate amount of HK$6,334mn(FY2017:

HK$3,433mn (as restated), covering both HK and Mainland China

The attributable share of the aggregate fair value change during the year(net of deferred taxation) of investment properties held by subsidiaries, associates and joint ventures is excluded in calculation of Underlying Profit. In order to fully exclude the impact of changes in fair value from the underlying profit, the cumulative fair value changes(net of tax) of investment propertiesdisposed of during the year were added back in the calculation of the underlying profits.

Earnings per share were calculated based on the weighted average number of shares as adjusted for the effect of the bonus issue under HKAS 33, "Earnings Per Share".

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Audited 31 Dec 2018

Audited 31 Dec 2017

Change

HK$ mn

Shareholders' equity

313,153

292,574*

7%

Cash and bank balancesNet debt

16,507 70,123

24,673 55,631

-33%26%

HK$

7%3.4

Net asset value per share^

71.15

66.48*

*Figures are restated under the adoption of new accounting standards, being HKFRS 9 and HKFRS 15, effective on 1 Jan 2018. In particular, the revenue from the sale of completed properties held for sale and gain on disposal of investment properties during the accounting period is recognized on the basis that control over the ownership of the property has been passed to the buyer during the current accounting period.

^The net asset value per share at 31 December 2018 was calculated based on the number of issued shares outstanding at 31 December 2018, whilst the net asset value per share at 31 December 2017 was calculated based on the number of issued shares outstanding at 31 December 2017 and as adjusted for the bonus issue effected in 2018.

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