2 Overview Swire Pacific is one of the leading companies in Hong Kong, with five operating divisions: Property Aviation Beverages Marine Services Trading & Industrial Listed on The Stock Exchange of Hong Kong Limited (Stock codes: & 00087) Our subsidiaries, joint venture companies and associated companies together employ over 42,000 staff in Hong Kong and globally over 93,000 staff Market capitalisation as at 30th June 2018: HK$116,850 million Committed investments as at 30th June 2018: amounted to HK$20,608 million 2
3 2018 Interim Results 2018 HK$M 2017 HK$M Change % Revenue 42,265 40,211 +5% Profit attributable to shareholders 13,501 12, % Underlying profit attributable to shareholders 1,265 3,880-67% Adjusted underlying profit attributable to shareholders 3,026 2, % 3 HK$ HK$ Underlying earnings per share A share B share Adjusted underlying earnings per share A share B share Change % -67% +40%
4 Property Swire Properties growing portfolio of offices, retail space and hotels is continuing to transform urban areas.
5 Overview A leading developer, owner and operator of mixed-use, principally commercial, properties in Hong Kong and Mainland China 5 Create long-term value by transforming urban areas Listed on The Stock Exchange of Hong Kong Limited (Stock Code: 01972). Swire Pacific owns 82% of the company Completed property investment portfolio in Hong Kong totals 11.5 million sq. ft. of gross floor area, with an additional 2.3 million sq. ft. under development Property investment portfolio in Mainland China will total 9.5 million sq. ft. on completion (8.9 million sq. ft. has been completed) In the USA, Swire Properties is the primary developer of a 1.1 million sq. ft. mixed-use commercial development at Brickell City Centre in Miami, with an adjoining 1.4 million sq. ft. development being planned
6 Business Areas 6 Swire Pacific Limited ( Stock Codes: A Shares 00019; B Shares 00087) 82% Swire Properties (Stock Code: 01972) Property Investment Hotel Investment Property Trading
7 Major Investment Properties Hong Kong Office 7 Name of Project GFA (100% Basis) Attributable Interest (2) Pacific Place, Admiralty 2.2 million sq. ft. 100% Taikoo Place Office Towers, Quarry Bay (1) 3.1 million sq. ft. 50%/100% One Island East, Quarry Bay 1.5 million sq. ft. 100% Cityplaza One, Quarry Bay 0.6 million sq. ft. 100% 28 Hennessy Road, Wanchai 145,390 sq. ft. 100% Generali Tower, Wanchai 81,346 sq. ft. 100% Retail Name of Project GFA (100% Basis) Attributable Interest (2) Cityplaza, Quarry Bay 1.1 million sq. ft. 100% The Mall at Pacific Place, Admiralty 0.7 million sq. ft. 100% Citygate Outlets, Tung Chung 0.5 million sq. ft. 20% Residential (3) Pacific Place Apartments, Admiralty Taikoo Place Apartments, Quarry Bay STAR STUDIOS, Wanchai (1) Including PCCW Tower, of which Swire Properties owns 50% (2) Attributable interest held by Swire Properties (3) The completed residential portfolio also comprises a small number of luxury houses and apartments.
8 Major Investment Properties Hong Kong Under Development 8 South Island Place, 8-10 Wong Chuk Hang Road, Aberdeen Name of Project Approximately 382,500 sq. ft. Late 2018 Tung Chung Town Lot No. 11, Tung Chung Taikoo Place Redevelopment, Quarry Bay South Island Place, 8-10 Wong Chuk Hang Road, Aberdeen GFA Approximately 474,000 sq. ft. Approximately 1,020,000 sq. ft. (One Taikoo Place) Approximately 1,000,000 sq. ft. (Two Taikoo Place) Approximately 382,500 sq. ft. Expected Completion Date Late 2018 Late /2022 Late 2018
9 Major Property Portfolio Mainland China (1) Name of Project GFA (100% Basis) Attributable Interest (2) Taikoo Li Sanlitun, Chaoyang District, Beijing Approximately I) The office portion of Sino-Ocean Taikoo Li Chengdu, Pinnacle One, 1.5 was million developed sq. ft. for trading purposes.nvestment Properties Mainland China TaiKoo Hui, Tianhe District, Guangzhou INDIGO, Chaoyang District, Beijing Sino-Ocean Taikoo Li Chengdu, Jinjiang District, Chengdu (3) Approximately 3.8 million sq. ft. Approximately 1.9 million sq. ft. Approximately 2.2 million sq. ft. 100% 97% 50% 50% 9 HKRI Taikoo Hui, Jingan District, Shanghai Under Development Approximately 3.5 million sq. ft. 50% Name of Project GFA (100% Basis) Attributable Interest (2) Qiantan Project, Pudong New District, Shanghai Approximately 1.2 million sq. ft. 50% (1) Including the hotel and property trading portions of these projects (2) Attributable interest held by Swire Properties (3) The office portion of Sino-Ocean Taikoo Li Chengdu, Pinnacle One, was developed for trading purposes.
10 Major Investment Properties USA 10 Name of Project Investment Properties Mainland China Brickell City Centre, Miami, Florida Future Development Name of Project One Brickell City Centre, Brickell City Centre, Miami, Florida (1) Attributable interest held by Swire Properties (2) Swire Properties owns 59.25% of the shopping centre at Brickell City Centre. GFA (100% Basis) Approximately 1.4 million sq.ft. GFA (100% Basis) Approximately 1.4 million sq.ft. Attributable Interest (1) 100% (2) Expected Completion Date To be determined
11 Hotels Hong Kong, Mainland China & USA 11 Name of Project Hotels Hong Kong Hong Kong GFA Attributable Interest (1) The Upper House, Pacific Place, Admiralty 158,738 sq. ft. 100% EAST, Hong Kong, Taikoo Shing 199,633 sq. ft. 100% JW Marriott Hotel Hong Kong, Pacific Place, Admiralty 525,904 sq. ft. 20% Conrad Hong Kong, Pacific Place, Admiralty 555,590 sq. ft. 20% Island Shangri-La Hong Kong, Pacific Place, Admiralty 605,728 sq. ft. 20% Novotel Citygate Hong Kong, Citygate, Tung Chung 236,758 sq. ft. 20% Mainland China The Opposite House, Taikoo Li Sanlitun, Beijing 169,463 sq. ft. 100% Mandarin Oriental, Guangzhou, TaiKoo Hui, Guangzhou 584,184 sq. ft. 97% EAST, Beijing, INDIGO, Beijing 358,269 sq. ft. 50% The Temple House, Sino-Ocean Taikoo Li Chengdu, Chengdu 355,789 sq. ft. 50% The Middle House, HKRI Taikoo Hui, Shanghai 291,130 sq. ft. 50% The Sukhothai Shanghai, HKRI Taikoo Hui, Shanghai 247,669 sq. ft. 50% (1) Attributable interest held by Swire Properties
12 Hotels Hong Kong, Mainland China & USA 12 Name of Project USA GFA Attributable Interest (1) EAST, Miami, Brickell City Centre, Miami, Florida 327,000 sq. ft. 100% Mandarin Oriental, Miami, South Brickell Key, Miami, Florida 345,000 sq. ft. 75% (1) Attributable interest held by Swire Properties
13 Property Trading Hong Kong, Mainland China & USA Principal completed developments available for sale 13 Name of Project GFA (1) Attributable Interest (2) Mainland China Pinnacle One, Sino-Ocean Taikoo Li Chengdu, Chengdu 593,139 sq. ft. 50% USA Reach and Rise, Brickell City Centre, Miami, Florida 322,564 sq. ft. 100% (1) Floor area shown represents the unsold portion (including portion which is subject to the outcome of court proceedings). (2) Attributable interest held by Swire Properties
14 Aviation We aim to continue to improve our products and services on the ground and in the air, to expand our fleet by acquiring fuel efficient aircraft and to strengthen our aircraft engineering business.
15 Overview Cathay Pacific group 15 Listed on The Stock Exchange of Hong Kong Limited (Stock code: 00293) Includes: Cathay Pacific Airways Hong Kong Dragon Airlines (wholly owned subsidiary) AHK Air Hong Kong (60%-owned subsidiary) Air China (associate interest) Air China Cargo (equity and economic interest) Interests in companies providing flight catering, and ramp and cargo handling services Owns and operates a cargo terminal at Hong Kong International Airport HAECO group Listed on The Stock Exchange of Hong Kong Limited (Stock code: 00044) Provides aviation maintenance and repair services Primary activities are aircraft maintenance and modification work in Hong Kong (by HAECO Hong Kong), in Xiamen (by HAECO Xiamen) and in the USA (by HAECO Americas)
16 Cathay Pacific group Principal subsidiary and associated companies (as at 30th June 2018) 16 Swire Pacific 45% 100% Hong Kong Dragon Airlines (Cathay Dragon) Cathay Pacific Services (CPSL) 100% Cathay Pacific Airways (Stock Code: 00293) 100% Cathay Pacific Catering Services (H.K.) (CPCS) Vogue Laundry Service 100% 25%* Air China Cargo 51% 29.99% 18.13% Air China 100% 24% Hong Kong Airport Services (HAS) 25% Shanghai International Airport Services (SIAS) AHK Air Hong Kong (AHK) HAECO ITM 60% 30% *Shareholding held through subsidiary at 25%, another 24% held through an economic interest with total holding at 49%.
17 Cathay Pacific group Network Coverage (as at 30th June 2018) 17
18 Cathay Pacific group Destinations Served (scheduled passenger and cargo services) 18 Cathay Pacific 212 destinations in 53 countries and territories Cathay Dragon 54 destinations in Mainland China and elsewhere in Asia Passenger Services 2018 Performance (six months ended 30th June) Cathay Pacific Group Passengers carried: 17.5 million Capacity increased by 3.2% compared to the same period in 2017 Load factor: 84.2%
19 Cathay Pacific group Cargo Services 2018 Performance (six months ended 30th June) 19 Cathay Pacific & Cathay Dragon Tonnage carried : 1 million tonnes of cargo and mail Capacity increased by 4.1% compared to the same period in 2017 Load factor : 68.3% Air Hong Kong A 60%-owned subsidiary of Cathay Pacific, operates express cargo services for DHL Express, the remaining 40% shareholder Operates express cargo services for DHL Express to 12 Asian cities Capacity decreased by 2% compared to the same period in 2017
20 Cathay Pacific group 20 Fleet Profile (as at 30th June 2018) Cathay Pacific group Fleet size: new aircraft on order for delivery up to 2024
21 HAECO group One of the world s leading independent aircraft engineering and maintenance providers, offering a comprehensive range of airframe, cabin, component and engine services. 21 Airframe Services Cabin Solutions Component Services Engine Services Offers airframe maintenance, cabin reconfiguration, structural modification and freighter conversion, as well as line services covering transit checks and certification, ramp services, cabin management and 24/7 aircraft-on-ground support across Asia and the USA. Provides cabin integration solutions for commercial aircraft and private jets, including design engineering, vendor management and certification. Also manufactures aircraft seats and interior products. Provides inventory technical management, component repair and overhaul services for hydraulic, mechanical, avionics and pneumatic systems across the Airbus and Boeing commercial aircraft fleets. Operates world-class repair, overhaul and testing facilities for Rolls- Royce, GE Aviation and Pratt & Whitney aircraft engines in Hong Kong and Mainland China.
22 HAECO group Group portfolio (as at 30th June 2018) 22
23 Beverages Swire Beverages manufactures, markets, and distributes refreshing soft drinks to consumers in Hong Kong, Taiwan, Mainland China and the USA.
24 Photo courtesy: The Coca-cola company. Overview 24 Swire Beverages has the exclusive right to manufacture, market and distribute products of The Coca-Cola Company ( TCCC ) in 11 provinces and the Shanghai Municipality in Mainland China, and in Hong Kong, Taiwan and an extensive area of the western USA At 30th June, 2018, Swire Beverages manufactured 60 beverage brands and distributed them to a franchise population of 727 million people
25 Coca-Cola Franchise Territories (as at 30th June 2018) 25
26 Per Capita Consumption in Franchise Territories (as at 31st December 2017) 26
27 Marine Services We aim to provide outstanding specialised offshore support to the global oil and gas industry.
28 Swire Pacific Offshore (SPO) 28 Operates a fleet of 78 offshore support vessels servicing the energy industry in every major offshore production and exploration region outside the USA (as at 30th June 2018) Has a windfarm installation business, a subsea inspection, maintenance and repair ( IMR ) business Total capital expenditure on new vessels and other fixed assets during the first half of 2018: HK$907 million
29 SPO - Fleet Size (as at 30th June 2018) 29 Vessel class 31st December 2017 Additions Disposals Half-year 30th June 2018 Anchor Handling Tug Supply Vessels Large Anchor Handling Tug Supply Vessels Platform Supply Vessels Large Platform Supply Vessels Construction and Specialist Vessels 10 1* * Subject to an operating lease.
30 SPO - Global Footprint (as at 31st December 2017) 30
31 Hongkong United Dockyards (HUD) group 31 A joint venture between CK Hutchison and Swire Pacific Provides engineering, harbour towage and salvage services from its facilities on Tsing Yi Island in Hong Kong Largest towage operator in Hong Kong, operating 13 tugs and providing a 24-hour service
32 Trading & Industrial We aim to broaden the range of our products and services.
33 Trading Swire Retail group 33 Swire Resources group Retails and distributes footwear, apparel and related accessories in Hong Kong, Macau and Mainland China Operates 194 retail outlets in Hong Kong and Macau and nine retail outlets in Mainland China (as at 30th June 2018) Operates six multi-brand sports and casual retail chains Marathon Sports, GigaSports, CATALOG, d2r, Go Wild and SoleRoom (as at 31th August 2018) Distributes footwear, apparel and related accessories of Aldo, Arena, Cath Kidston, Chevignon, Columbia, Crocs, Havaianas, EMU, Jockey, Mountain Hardwear, Repetto, Rockport, Soludos, Speedo, Teva, UGG and The Kooples (as at 30th June 2018)
34 Trading Taikoo Motors group 34 Distributes and retails motor vehicles in Hong Kong, Taiwan and Malaysia Taiwan - Official dealer for Volkswagen, Mercedes-Benz and Mazda passenger cars, and Volkswagen light commercial vehicles; official importer for Volvo buses, Harley-Davidson motorcycles and Vespa scooters; distributor for Volvo and UD trucks, and Volkswagen special purpose light commercial vehicles Hong Kong and Macau - Exclusive importer for Volvo and UD trucks; official dealer for Volvo buses Malaysia - Official dealer in Puchong for Volkswagen passenger cars; official dealer in Kuala Lumpur for Mercedes-Benz passenger cars 9,099 vehicles were sold in the first half of 2018
36 Industrial Swire Foods group (cont ) 36 Chongqing New Qinyuan Bakery A leading bakery chain in southwest China with 668 stores in Chongqing, Guiyang and Chengdu (as at 30th June 2018)
37 Industrial Swire Foods group (cont ) Taikoo Sugar Established by Swire in 1881 and refined sugar in Hong Kong for over 90 years Sugar trading and manufacturing arm under Swire Foods group Packages and sells sugar in Hong Kong and Mainland China under the Taikoo Sugar brand 37 Taikoo Sugar (China) Operates three wholly owned sugar packaging plants in Mainland China STS Sugar A joint venture with Sumitomo Corporation and TS Corporation Invests for sugar refinery operation in Mainland China market 34% owned sugar refinery in Guangdong started commercial operation in August 2017
38 Industrial Akzo Nobel Swire Paints 38 A joint venture with Akzo Nobel which manufactures and distributes decorative paints, primarily under the Dulux brand, in Mainland China, Hong Kong and Macau Has manufacturing plants in Guangzhou, Shanghai, Hebei and Chengdu in Mainland China Distributed paint in approximately 550 cities in Mainland China at the end of 2017
39 Industrial Swire Environmental Services group 39 Swire Waste Management A 50:50 joint venture with a subsidiary of Waste Management Inc. Seeks waste management contracts in Hong Kong Has contracts to provide waste management services to seven outlying islands and to the north west New Territories Swire Sustainability Fund Has an associate interest in Green Biologics and minority equity interests in NanoSpun Technologies and Avantium Green Biologics: a biotechnology company which is developing renewable chemical and biofuel technology NanoSpun Technologies: a company which is developing a water treatment process using nanotechnology Avantium: a biotechnology company that develops and commercialises bioplastics and chemicals