Hang Lung Properties Ltd. Category – Property Developers Sector – Commercial Developers

1. Hang Lung Properties Ltd. Category – Property Developers Sector – Commercial Developers Date: 03-10-2007 Presented by: Manish Garg

2. Agenda • Company Snapshot • Property Market in Hong Kong • Company Analysis

3. Company Snapshot • One of the most established listed companies in Hong Kong with over 40 years of experience in the property development market • The principal activities of the Company are investment holding and, through its subsidiaries, property leasing, property development for sale and investment, car park management and property management • Its portfolio includes residential, office and commercial developments. • Second largest real estate company in HK in terms of Market capitalization. • Two Prominent developments in Shanghai: • The Grand Gateway • The Plaza 66

4. Property Market: Hong Kong Grade “A” Office Market • The average rental in the whole Grade A office market increased 5.8% QoQ to HK$53.03 per • sq ft per month as at the end of May 2007 • Capital values +8.6% • The gradual completion of various Grade A office developments in non-traditional business • districts is predicted to ease the prospective growth of Grade A office rents to less than 5% • over the next 12 months Residential Market • The average rental in the whole residential market increased 7% QoQ to HK$34.63 per sq ft • per month as at the end of May 2007 • Capital Value increased by 4.3% • With the limited supply situation and sustained solid market sentiment, the luxury residential • price is expected to forge ahead 11% YoY in the next twelve months while the luxury • residential rental is forecast to grow upward 8% YoY.

5. Residential Property Market: Hong Kong • Industrial Sector • Due to the sustained volume of trade flows, the average factory rental increased 2.7% QoQ • to HK$7.38 per sq ft per month as at the end of May 2007. • Industrial property rentals are predicted to rise 10% while capital values will be boosted by • investors and industrialists to rise 18% over the next twelve months. • Retail Sector • Buoyed by sustained growth of local consumption and the strong occupational demand for • prime retail units, the average retail rentals in traditional shopping districts increased 10% • QoQ from HK$345 per sq ft per month in February 2007 to HK$378 per sq ft per month • as at the end of May 2007. • Given the prevailing solid fundamentals, the retail rentals and capital values are expected to • see an upward growth of 19% YoY and 25% YoY respectively over the next twelve months.

6. Company Analysis Company Analysis

7. Critical Successful Factors: • GDP • Population growth • Unemployment • Interest rate • Inflation rate • Govt. policies

9. Revenue by business Revenue by Segments

10. Operational Performance Revenues have come down by 15%, mainly due to declining property sales.

11. Financial Performance • NP attributable to shareholders is 42% higher than the previous corresponding period. • Excluding revaluation gain and related deferred tax, underlying NP fell by 2.2%.

12. Peer Comparison

13. 6-month graph

14. Stock Movement 1-year graph (normalized)

15. Recent News Sep 21, 2007 - Chinese Govt. is intended to impose a quota on the investments made by its local investors into Hong Kong market. Future Outlook • Rental activities should remain strong especially in shanghai. • New revenue will come from both improved rents as well as newly completed space. • The second office tower of Plaza 66 began to contribute.

16. Thank You