1H 2025 Half-Year Results Presentation

Good morning, everyone. A warm welcome to you all and thank you for joining us either in Hong Kong live or online I'm Michael Smith the chief executive of Hong Kong land and with me as Craig Beatty our chief financial officer Since the last time we met back in March We've continued building momentum and delivering on our initiatives which underpin the initial phases of our new strategy I am incredibly humbled by the continued support from many of you who have strongly endorsed not only Hong Kong Land's new direction, but the progress and announcements that we have made today. Some of you may recall that I highlighted the key areas of focus for Hong Kong Land with priorities 1, 2 and 3 relating to capital recycling. While we are incredibly pleased with the announcement in April of our landmark transaction with the Hong Kong Stock Exchange, work continues on a number of other initiatives, very important initiatives to recycle capital, which we are confident of delivering in the months ahead.

Now let me talk you through some of the details of what I just outlined, as well as go through our interim financial results for 2025. We'll have plenty of time for questions following the presentation. For those of you watching via the webcast, please send us your questions through the website and we will include them in the Q&A session. Here's the structure for today's presentation and let's otherwise state it all numbers quoted will be in US dollars. So let's begin. Turning first to an update on the overall strategic pivot of the business on which we continue to build strong execution momentum. On portfolio recycling we have reached 1.3 billion. In less than 12 months since the launch of our new strategy, we have already achieved 33% of our 2027 target. This includes the transaction with the Hong Kong Stock Exchange, which crystallizes independent

valuations and the central portfolio's NAV, further underlying both its attractiveness and its scarcity. As I mentioned earlier, this remains a key focus for the management team, with more announcements expected as other initiatives progress. On capital management, consolidated debt is down 200 million. The interim dividend is maintained, although our very strong intention, our conviction, is to deliver annual, mid-single digit growth in DPS remains unchanged. Finally, we have fulfilled our commitment to allocate up to 20% of net proceeds from capital recycling into share buybacks. The 200 million program announced in April is actively underway. On third party capital capabilities, Michelle Ling, who's sitting here, who joined us as our CIO earlier this year, has been busy building out our capabilities on portfolio recycling,

new investments, and partnering with third party capital providers. With her team now largely in place, they have been actively elevating Hong Kong land's profile amongst private market investors. One of the core pillars of Hong Kong land strategy is a focus on ultra-premium integrated commercial properties or UPICPs. The $1 billion tomorrow's central transformation continues to gain momentum with some exciting new opening scheduled before the end of this year. To position the central portfolio and wider district for the future, we are looking to take a stewardship role in further elevating the core central district for both tenants and the wider community. In Shanghai, Westbourne Central is also seeing strong momentum, attracting well-known international tenants such as Adidas. I will provide more details on all of this later in the presentation. Since the launch of our Strategic Vision 2035, we have spoken at length about no longer

investing in the build to sell segment. In order to enhance decision making and accelerate the recycling of capital, we have initiated an organizational restructuring of our build to sell business in China. Finally, at the core of our 2035 vision is a focus on total shareholder return or TSR. In the past, Hong Kong land management teams had minimum shareholdings in the business. With the introduction of a new renumeration framework, which includes the group's first long-term incentive plan, which we announced back in March, there is now significantly improved alignment with shareholders. As at the end of June, members of the board and the senior management team collectively hold over 1% of the group's total free flow. The ability to recycle capital is fundamental to the long-term execution of our strategy. We've made significant progress towards our target

of recycling at least $4 billion by the end of 27, achieving 33% of that target so far. The most notable transaction is the strata title sale of One Exchange Square, parts of One Exchange Square to the Hong Kong Stock Exchange. This not only secures their permanent iconic home at One Exchange Square, but it also ensures their long-term presence in our central ecosystem. Net proceeds from the transaction amounted to 5.9 billion Hong Kong dollars, which is in line with the latest valuations prepared by independent valuables. The remaining net proceeds recycled were from bill-to-sell portfolios, including 0.4 billion from the Chinese mainland and 0.1 billion from assets in Singapore and South Asia. One of the most critical success factors for Hong Kong land is living up to the vision, the ideal, that experience is central. Effective execution of our strategy over the long term

requires constant innovation and reinvestment in our portfolio anchors. I wanted to show you briefly some highlights on work being done to enhance our central portfolio ecosystem. Firstly, on tomorrow's central, since kicking off in the second half of last year, the transformation continues to gain momentum. Our initial phase of work is expected to begin bearing fruit with a number of exciting openings scheduled to take place over the next six to eight months. Many of our long-standing tenants and concepts have embraced Tomorrow Central and put in significant investments in their presence at the landmark. To highlight a few examples, we have three flagships all with new interiors including Bokelete, which is already open, as well as Petit Philippe and Yumyu, which will open in the next few months. The fully renovated China Tang reopened in recent months also, and a 14,000 square foot fully renovated Rubishan will reopen later this summer.