1

Hopewell Holdings Limited

Unaudited Interim Results

six months ended 31.12.2003

26 February 2004Presentation slides are available in www.hopewellholdings.com

2

Key HighlightsSustained Financial Strength 財務狀況持續穩定 Net Profit for 6 months increased by 256% to HK$626M 六個月純利為 港幣 六億二仟六百萬元 (256% )

Major contribution from China Infrastructure & IPO Gain 主要來自中國基建及上市收益 Improved Interest Coverage (EBIT/Interest) from 2.7x to 4.8x 利息覆蓋率 (利息稅項前盈利/利息) 由 2.7x 增加至 4.8x Low Debt Level: Net Debt decreased to HK$0.3b (87%↓ ) 凈負債降至港幣 三億元 (87%↓)

Net Debt vs Equity: 2% 凈債務對比股東權益: 2% Net Debt vs Capitalization: 2% 凈債務對比總資本: 2%

Continued growth in all Toll Roads (Combined Toll Revenue of GS Superhighway & Ring Road JV 22% , EBIT 33% ) 公路收入持續增長 (廣深高速公路及環城公路合作公司之總路費收入 22%，除利息及稅項前之

溢利 33% )

Phase I West expected to be completed ahead of schedule (May 04) 西線一期將較預期提前竣工 (2004年 5月)

Disinvestment of Non core Investment reduced no. of areas to 4 (vs 11 in FY99/00)

出售非核心業務因而減少投資地域至 4個 (11個於 2000年)

3

Group Results

Note: Total HHI Toll Revenue of JV for 6 months amount to RMB1,399M (last year: RMB1,144M) and the Group’s attributable portion thereof are not included in the Group’s Turnover.Operating EBIT: include Share of JV profit* Exclude impairment and disposal loss of non-core investment $49M (Dec-02: Nil)

HK$ million

31.12.02 31.12.03(restated)

Turnover (Note) 447 340

Profit from operations (before impairment 117 65 & disposal loss of non-core investment)

Share of Result of JV/Asso Co 334 443

Earnings before Interest & Tax 451 508

Exceptional Items - 365

Finance CostsInterest Expenses (176) (106) Other Finance Costs (57) (20)

Taxation (36) (35) Minority Interests (6) (86)

Net Profit 176 626

Six months ended

*

4

Group Resultant Debt

Resultant Debt: 淨債務減除集團於中國項目之計息貸款

HK$ million30-Jun-03 31-Dec-03

Net Debt 2,258 301

Interest Bearing Loan to China Ventures (1,759) (1,753)

Resultant Debt 499 N/A

Equity 13,653 14,130

Resultant Debt vs Equity 3.6% N/A

5

Group Earnings before Interest & Tax

HK$'M China Infrastructure Property Others Group EBIT

Jul - Dec 02 304 112 35 451

Jul - Dec 03 405 88 15 508

-

50

100

150

200

250

300

350

400

450

Jul-Dec02

Jul-Dec03

Jul-Dec02

Jul-Dec03

Jul-Dec02

Jul-Dec03

China Infrastructure Property Others

HK$'M Dec-02 Dec-036-month EBIT $451M $508M 13%

Dec-02 Dec-036-month EBIT $451M $508M 13%

#

#

# Include Interest Income from China Infrastructure JV for $23M (Dec-02 $32M)

6

Group Net Profit After Tax

256%

70

160 165 176

626

169

306339

618

0

100

200

300

400

500

600

700

FY 99/00 FY 00/01 FY 01/02 FY 02/03 FY 03/04Financial Year

HK

$M

illio

n

Interim Result ended 31/12 Annual Result ended 30/06

(6 months)

#

# Prior period adjustment: change of SSAP 12 (deferred tax) = $179M - $3M = $176M

7

Group EBIT vs Interest

1.4 1.4

4.8

2.7

1.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

FY 99/00 FY 00/01 FY 01/02 FY 02/03 FY 03/04(6 months)

Financial Year

EB

IT/In

tere

st

EBIT: $508M Interest: $106M

x

x

x

x

x

x x x

x

x

x

x

8

Group Gearing Ratio

#1 Total Net Debt $0.3b vs Equity $14.1b#2 Total Net Debt $0.3b vs Total Capital $17.2b

2%

40%

32%

18%

50%

24%

70%

2%0%

10%

20%

30%

40%

50%

60%

70%

80%

31-Dec-00 31-Dec-01 31-Dec-02 31-Dec-03

Six Months Ended

#1

#2

Low gearing allows for project

development

9

Group Return On Equity

2.2% 2.5%

4.5%

8.9%

1.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

FY99/00 FY00/01 FY01/02 FY02/03 FY03/04(6 months)

Financial Year

RO

E (

%)

10

Group Dividend History

5 5 5 56

7

10

5 56

7 7

18

0

2

4

6

8

10

12

14

16

18

20

FY97/98 FY98/99 FY99/00 FY00/01 FY01/02 FY02/03 FY03/04

Financial Year

Interim Dividend

Final Dividend

HK cents/share

#2: Special Interim Dividend of HK 30 cents/share declared in FY03/04 not shown above

#1: Special Dividend of HK 30 cents/share paid out in FY01/02 not shown above

#1

#2

#2

FY 2003/04Interim Dividend HK 10 centsSpecial Interim Dividend HK 30 cents

FY 2003/04Interim Dividend HK 10 centsSpecial Interim Dividend HK 30 cents

11

Group Cash Flow

Regular Cash Inflow

Rental Cash from Properties

Operating Cash from Hotel

Dividend from HHI

TJB Proceeds

12

Group Projects in Progress

China GZ West Superhighway Phase I (HHI) Huadu

Hong Kong / Macau Nova Taipa Phase II Mega Tower Project

13

Presentation End

14

Supplementary Info Group Results Property Hospitality HHI

15

Group Turnover

* Combined Toll Revenue = Toll Revenue of GS Superhighway and Ring Road #JV's total, NOT Group's attributable share-Financial Income includes Shareholder Loan to JV but Toll Revenue is not included under Equity accounting

0

300

600

900

1,200

1,500

Group Toll Revenue Group Toll Revenue

HK$'M

0

300

600

900

1,200

1,500RMB'MChina (Financing)

ConstructionHotel/FoodsPropertyToll Revenue

Six months ended 31.12.02

HK$447M

RMB1,144M#

HK$340M

RMB1,399M#

8%

38%

29%

25%

40%

Combined* Combined*

Not included in

Group Turnover

Not included in

Group Turnover

44%

8%8%

Six months ended 31.12.03

16

31.12.02 31.12.03

176

626

0

100

200

300

400

500

600

700HK$'M

Group Net Profit &Earnings before Interest & Tax

31.12.02 31.12.03

353

98

435

73

0

100

200

300

400

500

600

HK$'M Interest IncomeOperating #

Group Net ProfitEarnings before Interest & Tax*

Six months ended* Recurring Activities# Operating: include Share of JV profit

256%

Six months ended

17

Group Finance Cost & lnterest Income

HK$ million31.12.02 31.12.03

Finance CostInterest

Corporate (64) (33) Bond (112) (73)

(176) (106) Other Finance Costs

Redemption Premium (Notes 2007) (36) - Amortization of Bond Issue Cost (17) (3) Loan Arrangement Fee & Bank Charges (4) (17)

(57) (20)

(233) (126)

Interest IncomeChina Infrastructure 32 23 Others 67 50

98 73

Six months ended

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Group Balance Sheet

0

5

10

15

20

25HK$'b

TotalAssets$19.9b Equity

$13.7b

TotalLiabilities

$6.2b

As at 30.6.03 As at 31.12.03

TotalAssets$20.8b

TotalLiabilities

$6.7b

Equity$14.1b

19

Group Liquidity & Gearing

HK$ million 30.6.03 31.12.03

EQUITY 13,653 14,130

TOTAL NET DEBT 2,258 301

TOTAL CAPITAL 18,079 17,245

Gearing:-Net Debt vs Equity 16% 2%Net Debt vs Total Capital 12% 2%

20

Group Liquidity

Strong Financial Resources

Unutilised Facilities

as at 31.12.03: HK$2.3b

Cash on Hand

as at 31.12.03: HK$3.0b (of which HK$1.7b reserved for Bond Defeasance)

0.8

2.3

2.4

3.0

0

1

2

3

4

5

6

As at 30.6.03 As at 31.12.03

HK$'b CashUnutilised Facilities

21

Group Debt Maturity Profile(without Bond)

25% 21%

21%

54%

79%

0%

20%

40%

60%

80%

100%

As at 30.6.03 As at 31.12.03

Pe

rce

nta

ge

> 5 years

2 - 5 years

1 - 2 years

within 1 year

22

Group Month-end Exchange Rate

7.7737.7637.7667.764

7.743

7.7997.799

7.700

7.720

7.740

7.760

7.780

7.800

7.820

Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04

Month

HK

D/U

SD

HKD/USD Exchange Rate

0.9390.9380.9380.938

0.935

0.9420.942

0.930

0.935

0.940

0.945

Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04

Month

HK

D/R

MB

HKD/RMB Exchange Rate

Data source: HSBC

Data source: HSBC

23

PropertyEarnings before Interest & Tax

2512

28

22

54

59

0

20

40

60

80

100

120

31.12.02 31.12.03Six months ended

HK$' M

Hopewell CentreTrademartOthers HK$88M

HK$112M

24

HK Rental PropertyAverage Occupancy

65%

91%

63%

91%

0%

20%

40%

60%

80%

100%

Hopewell Centre Trademart

Av

era

ge

Oc

cu

pa

nc

y (

%)

Jul - Dec 02

Jul - Dec 03

25

HospitalityEarnings before Interest & Tax

1 1

8

2

2

13

17

1

0

5

10

15

20

25

30

31.12.02 31.12.03Six months ended

HK$'M

Panda HotelCatering/FoodsChina HotelOthers

HK$23M

HK$21M

26

HHI - GS SuperhighwayAverage Daily Toll Revenue

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

RMB'000

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

Jul-Dec 02 Jul-Dec 03 Avg Daily Toll Rev. RMB5,630k RMB6,880k 22%

Jul-Dec 02 Jul-Dec 03 Avg Daily Toll Rev. RMB5,630k RMB6,880k 22%

27

HHI - ESW Ring RoadAverage Daily Toll Revenue

0

100

200

300

400

500

600

700

800

900

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

RMB '000

2003

2002

2001

2000

1999

1998

1997

Jul-Dec 02 Jul-Dec 03 Avg Daily Toll Rev. RMB588k RMB721k 23%

Jul-Dec 02 Jul-Dec 03 Avg Daily Toll Rev. RMB588k RMB721k 23%

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HHI – Consolidated Income Statement

(HK$ million) 31-Dec-02 31-Dec-03 % Change

Toll Revenue 507 617 22%

Interest Income from S/H's loan 14 9 (36%)

Other Revenue 21 34 62%

Toll Operating Exp (53) (50) (6%)

General & Admin Exp (31) (47) 52%

Depreciation & Amortisation Exp (93) (113) 22%

Profit from Operations 365 450 23%

Finance Cost (107) (76) (29%)

Profit before Taxation 258 374 45%

Deferred Tax Expenses (10) (6) (40%)

Profit after Taxation 248 368 48%

Minority Interest (6) (8) 33%

Net Profit 242 361 49%

Core Earnings (4) 228 352 54%

Gross Margin (1) 89.5% 91.9%

Operating Margin (2) 67.3% 68.2%

Net Margin (3) 44.6% 54.7%

EBITDA/Interest 4.3x 7.4x

Notes: (1) (Toll revenue – Toll operating expenses) / Toll revenue (2) EBIT / Total revenue (3) Net profit / Total revenue (4) Net profit excluding interest income from shareholder loans

29

END