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HYSAN DEVELOPMENT COMPANY LIMITED

ANNUAL GENERAL MEETING OF THE COMPANY TO BE HELD AT 12:00 NOON ON

TUESDAY, 13 MAY 2014 AT GRANVILLE AND NATHAN ROOM, LOWER LOBBY,

CONRAD HONG KONG, PACIFIC PLACE, 88 QUEENSWAY, HONG KONG.

Part I – Preliminary and Business Overview Presentation

Ms. Irene Lee, Chairman

Opening Remarks

[Slide 1: Welcome to Hysan Development 2014 Annual General Meeting]

Good afternoon, ladies and gentlemen. The time for which the Meeting was called has past,

with the necessary quorum being present, we now proceed to our 2014 Annual General

Meeting.

各位午安，現在已屆召開本會議的時間，出席股東亦已達法定人數，會議正式開始。

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[Slide 2: Introduction of Board of Directors ]

I will start with a brief introduction of our Board members and team members. From our

Board are:

我首先介紹我們的董事會成員和團隊成員。董事會成員包括：

Deputy Chairman and Chief Executive Officer, Siu Chuen LAU

副主席及行政總裁劉少全

Independent non-executive Director, Nicholas Charles ALLEN

獨立非執行董事聶雅倫

Independent non-executive Director, Frederick Peter CHURCHOUSE

獨立非執行董事卓百德

Independent non-executive Director, Philip Yan Hok FAN

獨立非執行董事范仁鶴

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Independent non-executive Director, Joseph Chung Yin POON

獨立非執行董事潘仲賢

Non-executive Director, Hans Michael JEBSEN

非執行董事Hans Michael JEBSEN

Non-executive Director, Anthony Hsien Pin LEE

非執行董事利憲彬

Non-executive Director, Chien LEE

非執行董事利乾

Non-executive Director, Michael Tze Hau LEE

非執行董事利子厚

Executive Director, Wendy Wen Yee YUNG

執行董事容韻儀

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[Slide 3: Introduction of Our Team Members ]

Our team members are:

團隊成員包括：

Chief Financial Officer, Roger Shu Yan HAO

財務總監賀樹人

Director, Design and Project, Lai Kiu CHAN

建築設計及項目總監陳麗喬

General Manager, Retail Leasing, Kitty Man Wai CHOY

商舖租務總經理蔡雯慧

General Manager, Property Services, Lawrence Wai Leung LAU

物業服務總經理劉偉良

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Director, Office Leasing, Jessica Mo Ching YIP

寫字樓租務總監葉慕貞

Now, I would like to give you an overview of our business activities in 2013 and recent

updates. After that, we will proceed to the statutory meeting. If you have any questions

related to the resolutions, please raise them during the formal proceedings. For all other

questions, we will discuss them after the proceedings.

現在我向各位介紹公司於2013年的業務活動及最新進展，然後再進入今日股東周年大會的法定議程。各位如有與決議案有關的問題，請於正式議程的程序中提出。至於其他提問，我們將於議程後討論。

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2013 Business Environment Overview

[Slide 4: 2013 Business Environment Overview]

Hong Kong’s economy saw moderate growth of 2.9% in 2013 香港經濟於2013年溫和增長2.9%

Its retail leasing market continued to benefit from resilient local and tourist consumption 零售租賃市場繼續因本地市民及遊客穩定的消費力而受惠

Grade “A” office leasing market remained stable due to limited supply largely offsetting weak

demand. Rental levels in core areas, including Causeway Bay, were also stable 由於有限的供應量大致上抵銷了需求疲弱的影響，甲級寫字樓租賃市場保持穩定。包括銅鑼灣在內的核心地區，租金水平亦同樣穩定

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[Slide 5: 2013 Annual Results and Highlights]

Here are some highlights on Hysan’s 2013 Annual Results:

Our Group’s turnover was up 23.2%, reflecting Hysan Place’s first full year contributions

以下為希慎2013年全年業績的摘要： 集團營業額上升23.2%，反映希慎廣場首個全年度的租金收入

Recurring Underlying Profit increased 26.0%

經常性基本溢利增加 26.0%

An overall steady performance for Hysan Development is expected for 2014

預期2014年希慎興業的整體表現平穩

The Company is well-positioned for future growth with its on-going asset enhancement

programmes

集團憑藉持續的資產增值計劃，已具備優勢進一步增長

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[Slide 6: 2013 Performance: by Sector]

We now have a balanced portfolio with retail sector as the largest turnover contributor

均衡的物業組合中，現以商舖業務的營業額為最高

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[Slide 7: A Balanced Portfolio]

While the office sector takes up more than 50% of the gross floor area, the retail sector’s

properties value is higher than that of the other sectors’ in our balanced portfolio

寫字樓佔總樓面面積超過50%，而商舖的物業價值則比其他業務為高

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[Slide 8: 2013 Performance: Retail Sector]

Here we have more detailed information by sector:

We shall start with retail and a market overview of Hong Kong’s retail sales

以下為各業務的表現: 首先是商舖業務和本港零售市況的市場概覽

In 2013, Hong Kong saw an overall increase of 11.0%, a slight improvement from 2012’s 9.8%

在2013 年，本港整體增長 11.0% ，比2012年的9.8%錄得輕微增長

The growth came mainly from first half of the year

增長主要來自2013年上半年

Changes are observed in Mainland China visitors consumption pattern, now more towards products such as daily necessities and general merchandise

內地旅客的消費模式有所改變，現時多選購日用品及一般商品

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The city’s retail sales were also aided by healthy local employment conditions, as well as resilient local consumption

本地零售市況亦受惠於健康就業情況，及市民穩定的消費力

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[Slide 9: 2013 Performance: Retail Sector (con’t)]

As for Hysan, let’s revisit our retail portfolio with our three distinct clusters, each accounts for

about one-third of the Group’s retail space:

現在讓大家重溫希慎的三個商舖組群，每個商舖組群佔集團商舖樓面約三分之一:

There’s Hysan Place which showcases a “hip and trendy” shopping experience

希慎廣場為「時尚潮流」生活熱點

Then we have Lee Gardens hub which provides elegant and luxury premium spaces

利園商舖組群提供雅緻豪華的優質商舖

And then there is the Lee Theatre hub, with shops that highlight urban fashion and lifestyles

利舞臺商舖組群匯聚都會生活品味商店

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[Slide 10: 2013 Performance: Retail Sector (con’t)]

Looking at our retail portfolio more closely, you will find a number of flagship stores, from

major fashion labels, to cutting-edge electronic products:

多家大型旗艦店進駐三個商舖組群，包括知名時裝品牌，及潮流電子產品

In Hysan Place we have: Apple, eslite, Hollister and T Galleria

希慎廣場有Apple、誠品、Hollister和T Galleria

Moving south, we have the Lee Gardens hub, with aspirational brands like Cartier, Chanel,

Hermes, Louis Vuitton, Moncler, Ralph Lauren and Van Cleef & Arpels

南面的利園商舖組群有知名品牌如Cartier、Chanel、Hermes、Louis Vuitton、Moncler、Ralph

Lauren和Van Cleef & Arpels The western end of our portfolio is the Lee Theatre hub, home to flagship stores like Aland, G-Star Raw, I.T, Jack Wills, Muji, SaSa Supreme and Uniqlo 西面的利舞臺商舖組群匯聚大型旗艦店如Aland、G-Star Raw、I.T、Jack Wills、無印良品、Sasa Supreme和 Uniqlo

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[Slide 11: 2013 Performance: Retail Sector (con’t)]

After a hard day of shopping, you will find around 60 food and beverage outlets within our

portfolio, from high-end multinational cuisines, to delightful local offerings

三個商舖組群匯聚約60家環球食府：由高檔多國美饌，至本地小吃，包羅萬有

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[Slide 12: 2013 Annual Results and Highlights: Retail Sector]

And here we have the retail sector’s contributions in 2013:

Our retail sector revenue increased by 34.2% to HK$1,678 million. The turnover rent was

HK$106 million

以下為2013年商舖業務的詳細資料： 商舖業務的收入增加 34.2% 至 16 億 7 千 8 百萬港元。按租戶營業額收取的租金為 1 億 6 百萬港元

Overall occupancy was 95% at year-end 2013. If excluding Sunning Plaza, which was being vacated for redevelopment, the occupancy was 96% 於2013年年底，整體出租率為 95%。若撇除新寧大廈因進行重建而空置的影響，出租率為 96%

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[Slide 13: 2013 Annual Results and Highlights: Retail Sector (con’t)]

The turnover growth principally reflected Hysan Place mall’s first full year contribution, as well as the renovated Lee Theatre Plaza lower zone’s contributions 收入增加主要反映希慎廣場帶來首個全年度的租金收入，以及經翻新的利舞臺廣場低層商場的貢獻 In addition, positive rental reversions on renewals / reviews and new leases, which became effective during the year, when compared to existing leases, saw an average increase of around 50% in rental levels 此外，因續約、租金檢討和新出租物業並於年內生效的新租金水平較原有租約平均上升約50%

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[Slide 14: 2013 Annual Results and Highlights: Retail Sector (con’t)]

In recent years, we strategically revamped our tenant portfolio to create a more balanced tenant mix 近年，我們策略性地重組租戶組合，使其更加均衡 Our portfolio caters to both local shoppers and overseas visitors and there is no undue reliance on any one group 我們的商舖組群吸引本地消費者及遊客，不會過份依賴某一消費組群 Locals accounted for around 60% of estimated tenant sales 按估計的客戶銷售額，約 60%來自本地消費者

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[Slide 15: 2013 Annual Results and Highlights: Office Sector]

Now we turn to the office sector, and let’s start with a market overview 以下是寫字樓業務的市場概覽 The supply for Grade “A” offices remained limited in core locations 位於核心地區的甲級寫字樓供應依然緊絀 In terms of rental levels in 2013, Grade “A” offices in Causeway Bay remained stable 於2013年，銅鑼灣甲級寫字樓的租金水平穩定

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[Slide 16: 2013 Annual Results and Highlights: Office Sector (con’t)]

Our office sector revenue increased by 19.5% to HK$1,085 million

寫字樓業務的收入增加 19.5% 至 10 億8千5 百萬港元 The sector’s occupancy was 87% at year-end 2013 於2013年年底，出租率為 87% If excluding Sunning Plaza, the occupancy was a strong 98% 未計新寧大廈：出租率為98%的高水平

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[Slide 17: 2013 Annual Results and Highlights: Office Sector (con’t)]

The sector’s turnover growth principally reflected positive rental reversions on renewals/reviews and new lettings which became effective during the year

營業額增加主要反映續約、租金檢討與新出租物業訂立，並於年內生效的租金水平較原有租約上升 When compared to existing leases, an average increase of around 50% in rental levels 與原有租約比較，租金平均上升約50% Hysan Place also contributed with full occupancy achieved in Sept 2013 希慎廣場亦帶來額外貢獻，其出租率於2013年9月達至100%

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[Slide 18: 2013 Annual Results and Highlights: Office Sector (cont’d)]

Our top Four industry groups represented around 54.5% of our office tenant mix by lettable floor area, namely Insurance, Professional and Consulting, High-end Retailers, Banking and Finance

在集團的寫字樓租戶組合中，所屬行業的首四位共佔可供出租總樓面面積約 54.5%，分別是保險業、專業及顧問服務業、高檔零售商及金融業 We have a balanced tenant portfolio, no single category takes up more than 20% of total lettable area

寫字樓業務租戶組合均衡，當中並無單一行業佔可供出租總樓面面積超過 20%

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[Slide 19: 2013 Annual Results and Highlights: Residential Sector]

Turning to the residential sector, its revenue decreased by 8.5% to HK$300 million

住宅業務的營業額減少 8.5% 至 3 億港元

This principally reflected negative rental reversion as a whole, as well as loss of revenue due to

Sunning Court’s tenants vacating for redevelopment 這主要反映續約租金減少，以及新寧閣為進行重建而遷走租戶所導致的收入損失 Occupancy at year-end 2013 was 82% 於2013年年底，出租率為 82% If excluding Sunning Court, the occupancy remained at 92% 未計新寧閣，出租率為92%

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[Slide 20: 2013 Annual Results and Highlights: Residential Sector (cont’d)]

We continued to broaden our tenant base beyond the financial sector

我們繼續拓展金融業以外的租戶基礎

We continued to diversify marketing channels, strengthen tenant relationships and direct

marketing initiatives 我們繼續分散市場推廣渠道、加強租戶關係及直接推廣活動

Finally, we also enhanced our facilities, services and community activities 我們亦加強提升設施、服務及社區活動

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[Slide 21: Annual Results and Highlights: Strong Financial Position]

Our financial position is strong. Our Net Debt to Equity was 5.3%

希慎的財政狀況穩健。淨債務與股東權益比率為 5.3% Our Net Interest Coverage was 15.4 times 淨利息償付率為15.4倍 Our Average Finance Costs was 2.9% 平均借貸成本為2.9% The Group’s Average Debt Maturity was about 6.0 years as at 31 Dec 2013 於2013年12月31日，本集團的平均債務期限約為6.0年 Our Fixed Rate vs Floating Rate Debt Ratio was 68.0% vs 32.0% 定息與浮息債務比率：68.0% vs 32.0% Moody’s had upgraded our credit rating from Baa1 to A3; Standard and Poor’s rating is BBB+ 穆迪將希慎的信貸評級由 Baa1 提升至 A3，而標準普爾的評級則為 BBB+

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[Slide 22: Hysan’s Business Updates: Retail Sector]

Now turning to some business updates on the different sectors and we will start with the retail sector: With the combined redevelopment of the Sunning Plaza and Sunning Court project underway, 14,479 sq. ft. were excluded from our retail portfolio occupancy calculation. The occupancy was 99% at the end of March 2014

以下為集團各項業務的最新進展：

隨著新寧大廈及新寧閣合併重建計劃的進行，計算商舖組合出租率時，撇除了14,479平方呎的樓面面積。於2014年3月底，出租率為99% In terms of footfall, we recorded an increase of 8% of visitors to our portfolio during the May 1 “Golden Week” when compared to the same period last year 整體人流方面，相比去年五一黃金周假期，今年同期到訪集團商舖組合的訪客錄得8%的升幅

We have been taking a very proactive stance on marketing: both the Captain America 2 and LINE promotions at Hysan Place were very well received 積極的市場推廣：美國隊長2及LINE於希慎廣場的推廣活動廣受歡迎

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And we saw positive rental reversions on renewals/reviews and new lettings which became effective in Q1 2014, when compared to existing leases 於2014年第一季生效的，續約、租金檢討與新出租物業的租金水平較現有租約上升 Changes in tenant mix was a factor which helped our Q1 2014 retail portfolio tenant sales increase by an estimated 20% year-on-year, outperforming the overall Hong Kong market’s 4.2% increase 租戶組合的改變有助帶動2014年第一季商舖組合的租戶銷售額按年增加約20%， 比香港整體零售市場的4.2%增幅更理想 Q1 2014 tenant sales to VIP Club Avenue customers in retail portfolio also continued to improve 於2014年第一季，Club Avenue 尊貴客戶於商舖組合所帶動的銷售額亦持續增加

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[Slide 23: Hysan’s Business Updates: Office Sector]

Now going onto the office sector: With the Sunning redevelopment project underway, 218,182 sq. ft. were excluded from our office portfolio occupancy calculation. The occupancy was 97% at the end of March 2014

希慎寫字樓業務方面，隨著新寧重建計劃的進行，計算寫字樓組合出租率時，撇除了218,182平方呎的樓面面積。於2014年3月底，出租率為97% And we saw positive rental reversions on renewals and new lettings in Q1 2014, when compared to existing leases 於2014年第一季，續約與新出租物業的新租金水平較原有租約上升 We have good progress with regards to negotiations for leases due for renewal in 2014 於2014年內期滿的租約續租洽商進度良好

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[Slide 24: Hysan’s Business Updates: Residential Sector]

Finally, we come to the residential sector updates: With the Sunning redevelopment project underway, 97,506 sq. ft. were excluded from our residential sector portfolio occupancy calculation. The occupancy was 95% at the end of March 2014

最後，有關住宅業務的最新進展： 隨著新寧重建計劃的進行，計算住宅業務出租率時，撇除了97,506平方呎的樓面面積。於2014年3月底，出租率為95% We shall continue to strengthen tenant relations and enhance direct marketing initiatives, which help increase tenant referrals and improve cost effectiveness 我們將繼續加強租戶關係及直接推廣活動，以增加租戶轉介及提升成本效益

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[Slide 25: Sunning Plaza and Sunning Court Combined Redevelopment]

As you may know, our next major project will be the combined development of Sunning Plaza and Sunning Court. Demolition is progressing well, with more than half of the demolition work completed

我們會將新寧大廈及新寧閣合併及改建。大廈的拆卸工程進度良好，已完成拆卸超過一半的項目部份 Our redevelopment project is on target and will be completed around 2018 項目正按計劃進行，預計約於2018年完成