MTR Corporation Limited

Greetings everyone, members of the press. I am Linda Choi, Corporate Affairs and Branding Director of MCRC. Welcome to the Annual Results 2025 Press Briefing. First of all, let me introduce the corporate representatives on stage. Seated in the middle is Ms. Jenny Yeung, the CEO. Next to her on the right are Mr. David Tang, Managing Director, Property and International Business and also Mr. Wilson Kwong, Hong Kong Transport Services Director and on the left are Mr. Michael Fitzgerald, FD and Mr. Carl Deflin, Capital Works Director and also Mr. Sammy Wong, Chinese Mainland Business Director. We'll be using Chinese in the main today Ms Jenny Yeung will be talking about the 2025 four year results and after that Michael will go through the financials and then Ms Jenny Yeung will come back and share the company's outlook and future developments and she will also be speaking in English in summary and today we have simultaneous interpretation in Chinese and also in English after that we will have a Q&A session Jenny please Thank you Linda Ladies and gentlemen of the media, good afternoon to you. Welcome to the annual results 2025 for MTRC and this year marks my first announcement of my corporation's results as CEO. I would like to thank the board for entrusting me with this important responsibility and will continue to work with our teams to grow MTR's business Create opportunities and optimize value. I will first present the corporation's 2025 performance and share our 2026 outlook. 2025 was a year full of challenges yet with progress. Recurrent business profit for the year exceeded HK$5.6 billion, representing a year-on-year decline due to factors including changes in travel patterns among the public and overall economic environment. With the dedicated efforts of the team, we continue to provide the people of Hong Kong with high-quality, efficient and reliable services in rail and property related services. In the past year a number of new projects made good progress. Our 100th station Kutong station on the East Rail line is expected to be completed next year. We will drive forward the Northern Link project aiming to deliver the project as scheduled. Next, now MTR has always been committed to a customer centric approach in providing quality services to the community. We'll continue to adopt advanced technologies including AI to enhance both hardware and software systems and deliver more caring services. Railway operations remain our core business. Over the past year, we continue to provide reliable and efficient services. Total local patronage was broadly comparable to 2024, exceeding $1.9 billion. Passenger journeys on time maintained at 99.9% while customer service satisfaction had reached a record high since the rail merger. For cross-boundary services, the patronage to Lowu and Lokmacha recorded over 8% growth. The patronage of the high-speed rail Hong Kong section exceeded 30 million last year, reaching a new annual record since commissioning, and a year-on-year increase of over 16%. Direct access destinations from Hong Kong West Kowloon station has now increased to 110. after years of development our HSR has achieved seamless connectivity with the national high-speed rail network and had become an indispensable mode of transport between Hong Kong and the mainland strengthening links with the GBA and major provinces and cities contributing to enhance connectivity in our malls despite a challenging external environment and downward pressure on rents near full occupancy was recorded throughout the year with strong footfall reflecting business resilience shortly Michael will go through the detailed performance of major business segments let me start with the strategic level Amid market competition and changes in travel and consumption patterns, we continued to address challenges proactively last year. In railway services, we leveraged the mega events economy by working with event organizers to bring activities into our stations to enhance overall passenger experience. We also partnered with popular IPs to launch crossover initiatives transforming our railway into experiential and check-in spots. For malls, we leveraged our strong connection by engaging local participation through diverse events, while continuously introducing new brands and optimising tenant mix. as post-pandemic changes have become the new normal. We continue to pursue innovation, strengthen revenue from recurrent businesses and enhance business sustainability. Beyond railway service, another key focus of ours is of course the advancement of our six new railway projects, all of which made good progress in 2025. For instance, Kutong Station on the East Rail Line was topped up last year, with a target for commissioning next year. Tongchong East Station on Tongchong Line Extension was topped out in February, with remaining works focusing on the tracks towards Tongchong. For the Toonmoon South extension, the project is located within a well-developed and densely populated community. To release land for railway construction, certain community facilities required reprovisioning. The largest is the Toonmoon swimming pool, which has been completed, and we are very pleased that the new pool is well received by the community. A key milestone among the new railway projects was the signing of the project agreement for North End Link Part 1. Preparatory works for construction have commenced alongside integrated planning for the North End Link mainline and spur line. The target is for synchronised opening of both the main and spur lines connecting to the new Huanggang Port no later than 2034 to support the development of the Northern Metropolis. The recently announced Hong Kong Railway Standards will also facilitate the advancement of the Northern Link project. Last year, under the principle of Think Ahead, Stay Ahead, the Corporation highlighted the need to make early preparations for investments exceeding HK$100 billion across multiple projects During the year, we undertook a number of financing initiatives in Hong Kong and overseas capital markets to prepare for the substantial funding requirements for the major projects in the coming year will continue to prudently plan our funding needs in accordance with the progress of new project agreements. In 2025, we recorded a one-off property profit mainly arising from profit recognition under the rail plus property model for Changkwan O Line and South Island Line. Property development profit is one-off in nature and is often recognised later than the commencement of new railway lines. Such profit is used to subsidise rail construction, investment, asset maintenance, renewal, enabling the provision of high-quality, reliable and affordable services without reliance on public finances. We are currently developing nine property projects, which will provide approximately 8,000 housing units, ensuring a steady supply to the Hong Kong housing market. Last year, we successfully awarded the Tuen Mun A16 Station Package 1 project. In 2025, we celebrated the 45th anniversary of our railway property development. Telford Gardens and Telford Plaza in Cowden Bay, our headquarters, Demonstrating our commitment to building communities and growing alongside them As a Hong Kong rooted and internationally recognized brand We continue to expand steadily in the Chinese mainland and overseas In the mainland, Beijing Metro Line 17 and Shenzhen Metro Line 13 Phase 1 Commence full line service by the end of last year And as new growth drivers We successfully expanded station commercial businesses in Chengdu Corp Ltd U & Adr Train frequency was increased in early February this year receiving very positive public response. For Sydney Metro, since the opening of the Cross Harbour section in August 2024, cumulative patronage has exceeded 100 million passenger journeys, reflecting strong performance. I will now pass the time over to Michael, our FD, to talk about our financial performance.

Our recurrent businesses recorded a profit for 2025 of HK$5.7 billion. This lower level of profit compared to last year was partly due to one-off items such as our sharing of an impairment relating to Hangzhou Line 1 and to rental concessions granted to certain tenants in Hong Kong. Property development profit increased to HK$11 billion. Including property development profit, underlying business profit was therefore HK$16.7 billion. Together with changes in the fair value measurement of our investment properties, total net profit attributable to shareholders for the year was $14.7 billion. In Hong Kong transport operations, our EBIT loss was HK$254 million. Cross-boundary and high-speed rail services were boosted by the increasing two-way flow of travellers between Hong Kong and the Chinese mainland. However, this was offset by increased operating costs and higher depreciation, as well as by revenue lost through bad weather. Our station commercial EBIT decreased by 3%, mainly due to negative rental reversion and to lower telecommunications revenue. The EBIT of our property rental and management business decreased by 8%, mainly due to negative rental reversion and to the one-off write-down of unamortised rental concessions. In our Chinese mainland and international businesses, as expected, the contribution was affected by the anticipated operating losses arising from the opening of the initial section of Shenzhen Metro Line 13 Phase 1, as well as by our share of the impairment loss in respect of Hangzhou Metro Line 1. The Group's financial position remains robust, and our net debt-to-equity ratio stands at the healthy level of 22.5%. We have continued with our prudent approach of realising diversified sources of external funding. As such, we arranged a total of over US$10 billion equivalent of external funding in 2025, including the issuance of US dollar bonds, perpetual capital securities and a syndicated green loan from a group of 57 banks in Hong Kong. In January 2026, we priced an Australian dollar green bond, being the largest green bond ever issued by any corporate in Australian dollars. These transactions garnered strong interest from both local and international institutional investors, demonstrating the confidence that global markets have in MTR, the crucial role MTR plays in the development of Hong Kong's infrastructure, and the company's reputation for prudent financial management and robust planning. In terms of funding cost, funding raised in currencies other than HKD is always swapped back to HKD, meaning that MTR pays HKD interest rates. This has helped us to keep average funding costs under control. For 2025, our average borrowing cost was 3.5%, 0.2 percentage points lower than last year, and by the end of the year, the average maturity of our debt portfolio had been extended to be over 9 years. With that, I will now hand back to Jenny to present our outlook.

Thank you, Michael. After taking into full account the corporation's financial position and future capital requirements, the board has proposed a final ordinary dividend of HK$0.89 per share, bringing the total ordinary dividend for the year to HK$1.31 per share.