Swire Pacific Limited (OTCPK:SWRAY) Q4 2021 Earnings Conference Call March 10, 2022 4:45 AM ET Company Participants Guy Bradley – Chief Executive, Swire Properties Karen So – Managing Director of Swire Coca-Cola Ltd Martin Murray – Finance Director Donna Suen – Assistant Manager, Group Public Affairs Conference Call Participants Donna Suen May I now invite Guy, Martin, and Karen to take us through a detailed look at our results for 2021. Over to you guys, please. Guy Bradley Thank you, Donna. And thank you, ...

Financial Performance - The company reported a loss attributable to shareholders of HKD 792 million for the six months ended June 30, 2021, compared to a loss of HKD 7,737 million in the same period last year, representing a 90% decrease [5]. - Basic earnings per share for 'A' shares was HKD 0.84, a significant recovery from a loss of HKD 3.65 in the previous year [5]. - Revenue increased by 20% to HKD 46,738 million from HKD 39,056 million year-on-year [5]. - Operating profit reached HKD 4,751 million, a turnaround from an operating loss of HKD 1,670 million in the prior year [5]. - The group recorded a consolidated loss attributable to shareholders of HKD 7.92 billion in the first half of 2021, an improvement from a loss of HKD 77.37 billion in the same period of 2020 [10]. - The recurring basic profit for the first half of 2021 was HKD 786 million, compared to a recurring basic loss of HKD 1.23 billion in the same period of 2020 [10]. - The profit attributable to shareholders was HKD 1,992 million, up from HKD 1,045 million, marking an increase of 90.5% year-on-year [18]. - The group reported a total comprehensive income of HKD 1,639 million for the period, compared to a loss of HKD 792 million in the previous period [169]. Cash Flow and Debt Management - Cash generated from operations doubled to HKD 10,657 million, up 106% from HKD 5,176 million [5]. - The net debt decreased by 21% to HKD 39,081 million compared to HKD 49,277 million in the previous year [5]. - The company maintained a capital net debt ratio of 12.2%, down from 15.6% [5]. - The net debt-to-equity ratio as of June 30, 2021, was 12.2%, with available liquid funds amounting to HKD 54.6 billion [6]. - The company had total borrowings of HKD 63,114 million as of June 30, 2021, down from HKD 68,164 million at the beginning of the year [101]. - The net cash used in investment activities was HKD (6,198) million, reflecting a decrease from HKD (1,925) million in the previous year [100]. - The company’s cash and short-term deposits decreased to HKD 24,033 million from HKD 29,264 million at the end of 2020 [119]. - The group’s total liabilities reached HKD 110,556 million as of June 30, 2021, with non-controlling interests at HKD 56,307 million [128]. Dividends and Shareholder Returns - The interim dividend for 'A' shares was increased by 43% to HKD 1.00 from HKD 0.70 in the previous year [5]. - The first interim dividend declared is HKD 1.00 per 'A' share and HKD 0.20 per 'B' share, to be distributed on October 6, 2021 [11]. - The company aims to maintain a dividend policy that ensures sustainable growth, targeting to distribute at least half of recurring basic profits as dividends in the future [6]. - The company paid dividends amounting to HKD (2,386) million during the period, compared to HKD (3,360) million in the previous year [100]. Sector Performance - The property division was the largest source of profit for the group, with recurring basic profit of HKD 3.29 billion in the first half of 2021, compared to HKD 3.67 billion in the same period of 2020 [10]. - The beverage segment, Swire Coca-Cola, saw profits increase by 55% and 97% compared to the first half of 2020 and 2019, respectively [8]. - The aviation sector recorded a loss of HKD 3.25 billion in the first half of 2021, compared to a loss of HKD 9.25 billion in the same period of 2020 [10]. - The hotel business showed improvement, with performance in mainland China and the United States recovering [10]. - The property segment in mainland China recorded a valuation gain of HKD 1.181 billion, while the Hong Kong investment properties experienced a valuation loss of HKD 34.33 billion [8]. Future Outlook and Strategic Initiatives - The company is focused on sustainable development and long-term growth, emphasizing innovation and operational excellence [4]. - The company plans to continue investing in the healthcare sector and has identified multiple investment opportunities in the real estate sector in mainland China [6]. - The company expects the performance of Swire Properties to continue improving, particularly in mainland China, with several new real estate projects announced [6]. - The company plans to enhance its property portfolio through strategic partnerships and new developments in key markets [23]. - The company plans to invest at least HKD 20 billion in the healthcare sector by 2030, establishing it as a significant business [11]. Market Conditions and Challenges - The hotel business in Hong Kong remains challenging due to COVID-19 and travel restrictions, with recovery dependent on vaccination progress and border reopening [39]. - The real estate sector is expected to see strong retail market prospects in mainland China, while the outlook for Hong Kong remains uncertain [12]. - The anticipated completion of the redevelopment project "Taikoo Place Two" is expected in the first half of 2022, with a total floor area of approximately 1 million square feet [28]. - The company is adapting to market conditions and managing costs prudently, with expectations for the second half of 2021 to be similar to the first half [87].

2021 Interim Results Analyst Briefing 12th August 2021 | Hong Kong SWIRE PACIFIC Background This document has been prepared by Swire Pacific Limited (the "Company", and together with its subsidiaries, the "Group") solely for information purposes and information in it has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the accuracy, fairness, completeness, reasonableness or correctness of the information or opinions prese ...

Fleet and Operations - The company operates a fleet of 239 aircraft as of the end of 2020, including subsidiaries Hong Kong Express and Dragonair[10]. - Cathay Pacific operated a fleet of 199 aircraft as of December 31, 2020, with 43 new aircraft on order for future delivery[130]. - As of December 31, 2020, the Swire Ocean Development Group operated a fleet of 61 vessels, including supply and construction vessels[200]. - The total number of aircraft in the Cathay Pacific Group fleet as of December 31, 2020, was 239, with 92 passenger aircraft (44% of the fleet) relocated outside Hong Kong[143]. Financial Performance - The company's return on equity decreased to -4.1% from 3.3%, a decline of 7.4 percentage points[12]. - The earnings per share for 'A' shares dropped to HKD -7.32 from HKD 6.00, while 'B' shares fell to HKD -1.46 from HKD 1.20[12]. - Total revenue for the year was HKD 80,032 million, a decrease of 7% compared to HKD 85,652 million in the previous year[12]. - Operating profit plummeted by 80% to HKD 2,695 million from HKD 13,792 million[12]. - The company recorded a basic loss of HKD 3.969 billion in 2020, compared to a profit of HKD 17.797 billion in 2019, marking the first basic loss since its listing in 1959[19]. - The recurring basic loss for 2020 was HKD 609 million, a significant decline from a profit of HKD 7.221 billion in 2019[19]. - The company reported a consolidated loss attributable to shareholders of HKD 10.99 billion for 2020, compared to a profit of HKD 9.07 billion in 2019[32]. - The group’s attributable profit for 2020 was HKD 3,388 million, down 69.1% from HKD 11,007 million in 2019[56]. - The basic attributable profit decreased to HKD 12,705 million from HKD 24,143 million in 2019, reflecting a decline of 47.3%[57]. Revenue and Sales - The beverage division reported annual sales of 1.743 billion standard cases in 2020[172]. - Total revenue increased by 2% to HKD 45,657 million, including revenue from a joint venture, despite a 2% decline in sales volume to 1.743 billion cases[177]. - Revenue from the mainland China market was HKD 22,942 million, a 1% increase from HKD 22,087 million in 2019, while sales volume decreased by 4%[176]. - The company experienced a decline in revenue and sales volume in Hong Kong, with revenue down 6% to HKD 2,199 million and sales volume down 12%[176]. - The company's revenue from the United States market was HKD 18,008 million, an increase from HKD 17,196 million in 2019, with a sales volume increase of 4%[176]. Sustainability and Corporate Governance - The company aims to maintain sustainable growth and long-term shareholder value through prudent financial management and investment in high-potential markets[9]. - The company is committed to sustainable development and believes it contributes to long-term growth through innovation and efficiency improvements[9]. - The company has a strong commitment to corporate governance and maintaining its brand reputation[9]. - The greenhouse gas emissions reduced by 57% to 8.4 million tons of CO2 equivalent from 19.3 million tons[12]. - The energy consumption decreased by 58% to 112.1 million gigajoules from 264.3 million gigajoules[12]. Challenges and Market Outlook - The outlook for 2021 remains challenging due to ongoing pandemic impacts, with expected recurring losses in the first half of the year[23]. - The company’s operational environment in 2020 was extremely challenging, with passenger revenue dropping to only 2-3% of pre-pandemic levels[32]. - The hotel business in Hong Kong is facing challenges, with recovery dependent on travel restrictions and vaccination progress[34]. - The company anticipates continued pressure on retail rents in Hong Kong if the adverse effects of the COVID-19 pandemic persist[114]. Investment and Development - The company plans to focus on investment opportunities in the Greater China region, with a total capital commitment of HKD 26.7 billion[19]. - The company plans to invest heavily in capital expenditures despite the challenging market conditions[34]. - The company is expanding its product and packaging portfolio in the Coca-Cola segment, investing in production assets and digital capabilities[33]. - The company completed the sale of two office buildings in Miami in December 2020, indicating ongoing asset management strategies[33]. - The company has committed to provide capital contributions of HKD 13,327 million to joint ventures in mainland China as of December 31, 2020[108]. Employee and Operational Metrics - The company employs over 34,000 staff in Hong Kong and more than 34,000 in mainland China, totaling over 86,000 employees globally[10]. - The group employed over 25,600 staff globally, with approximately 80% based in Hong Kong as of December 31, 2020[130]. - The average age of the fleet was 10.1 years in 2020, slightly down from 10.3 years in 2019[135]. Sector Performance - The aviation sector, particularly Cathay Pacific, faced severe challenges, recording a loss of HKD 21.6 billion for the year[19]. - The real estate sector contributed the most to the group's performance, with recurring basic profit of HKD 45.84 billion in 2020, up 31% from HKD 35.28 billion in 2019[32]. - The recurring operating profit by region for 2020 was 40% from Mainland China, 49% from Hong Kong, 8% from the USA, and 3% from other regions[31].

Swire Pacific Limited (OTCPK:SWRAY) Q4 2020 Earnings Conference Call March 11, 2021 3:45 AM ET Company Participants Merlin Swire - Chairman Michelle Low - Finance Director Operator Good afternoon, everyone. Welcome to the live webcast of the Swire Pacific 2020 Final Results Analyst Briefing. We apologize that Mr. Merlin Swire, Chairman of Swire Pacific, is not physically present here today. He's self-isolating at home out of the abundance of caution as he has been in contact with the potential closed contac ...

2020 Annual Results Analyst Briefing 11th March 2021 | Hong Kong SWIRE PACIFIC Background This document has been prepared by Swire Pacific Limited ("the "Company", and together with its subsidiaries, the "Group") solely for information purposes and information in it has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the accuracy, fairness, completeness, reasonableness or correctness of the information or opinions presen ...

Financial Performance - The company reported a loss attributable to shareholders of HKD 7,737 million for the six months ended June 30, 2020, a decrease of 197% compared to a profit of HKD 7,939 million in the same period last year[8]. - Basic loss per share for 'A' shares was HKD (5.15), down 197% from HKD 5.29 in the previous year[8]. - Revenue for the period was HKD 39,056 million, representing a 9% decrease from HKD 42,870 million in the prior year[8]. - Operating loss was HKD (1,670) million, a decline of 115% compared to an operating profit of HKD 10,866 million in the same period last year[8]. - The group reported a loss attributable to shareholders of HKD 7,737 million for the six months ended June 30, 2020, compared to a profit of HKD 7,939 million in the same period of 2019[120]. - The group’s total revenue for the six months ended June 30, 2020, was HKD 39,056 million, a decrease from HKD 42,870 million in the same period of 2019, representing a decline of approximately 8.5%[132]. Dividends - The company declared an interim dividend of HKD 0.70 per 'A' share, a decrease of 48% from HKD 1.35 in the previous year[8]. - The board declared an interim dividend of HKD 0.70 per 'A' share and HKD 0.14 per 'B' share, reflecting a reduction in dividends due to the challenging business environment[10]. - The board declared an interim dividend of HKD 0.70 per 'A' share and HKD 0.14 per 'B' share, totaling HKD 1.051 billion, a decrease from HKD 2.027 billion in the previous year[147]. Cash Flow and Debt - The net cash inflow from operations was HKD 5,176 million, an increase of 18% from HKD 4,368 million in the previous year[8]. - The net debt amounted to HKD 49,277 million, a slight increase of 1% from HKD 48,630 million[8]. - The company had total borrowings and debt securities of HKD 107,452 million as of June 30, 2020, with HKD 35,647 million remaining undrawn[106]. - The net cash generated from operating activities was HKD 3,158 million, up from HKD 2,917 million year-on-year, indicating a growth of 8.2%[123]. - The company’s total liabilities decreased to HKD 69,805 million from HKD 74,341 million, reflecting a reduction of 6.2%[122]. Impairments and Losses - The group recorded impairment and related expenses of HKD 24.65 billion in the first half of 2020, primarily related to 16 aircraft expected to be retired or returned[12]. - The company recorded a significant non-recurring item of impairment losses on property, plant, and equipment amounting to HKD 5,380 million[103]. - The loss from the revaluation of investment properties was HKD 2,743 million, while the deferred tax related to investment properties was HKD 68 million[102]. - The group recognized a net loss of HKD 3,951 million from other income/expenses for the six months ended June 30, 2020, compared to a net gain of HKD 1,192 million in the same period of 2019[140]. Sector Performance - Cathay Pacific recorded a loss of HKD 9.9 billion, with passenger revenue decreasing by 72% due to extensive travel restrictions caused by the COVID-19 pandemic[9]. - The trading and industrial segment experienced recurring losses, significantly impacted by the COVID-19 pandemic on Swire Resources[10]. - The beverage division anticipates revenue growth in mainland China in the second half of 2020, with growth rates expected to outpace sales volume[16]. - The marine services sector reported a loss of HKD 49.67 billion in the first half of 2020, compared to a loss of HKD 6.33 billion in the same period of 2019[82]. Market Outlook - The company anticipates a soft demand for office space in Hong Kong in the second half of 2020 due to economic weakness[14]. - The group anticipates that the travel industry will take years to recover to pre-crisis levels due to the unprecedented impact of the COVID-19 pandemic[43]. - The group is facing significant challenges due to the global health crisis, with the outlook remaining highly uncertain[43]. Operational Adjustments - The company plans to sell non-core assets to maintain financial health and capitalize on future opportunities[11]. - The company plans to optimize its operational scale and model in response to the current market outlook and cost structure[15]. - The company is in discussions with Xiamen authorities regarding relocating its facilities to the new airport, which is crucial for its operations[16]. Property and Investment - The property investment segment generated external revenue of HKD 6,121 million, with an operating profit of HKD 4,317 million, while the hotel segment reported an external revenue of HKD 274 million and an operating loss of HKD 197 million[125]. - The total rental income from investment properties was HKD 6,074 million for the six months ended June 30, 2020, compared to HKD 6,294 million in the same period of 2019, reflecting a decrease of about 3.5%[139]. - The total completed floor area owned by the group was 22,669 thousand square feet as of June 30, 2020[29]. Government Support - The group received government support of HKD 10.6 billion related to the COVID-19 pandemic[12].

SWIRE PACIFIC 2020 Interim Results Analyst Briefing 13th August 2020 Background This document has been prepared by Swire Pacific Limited ("the "Company", and together with its subsidiaries, the "Group") solely for information purposes and certain information has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the accuracy, fairness, completeness, reasonableness or correctness of the information or opinions presented here ...

Swire Pacific Ltd (OTCPK:SWRAY) Q2 2020 Earnings Conference Call August 13, 2020 4:45 AM ET Company Participants Cindy Cheung - Manager Group Public Affairs Merlin Swire - Chairman Michelle Low - Finance Director & Executive Director Patrick Healy - Executive Director, Beverages Division Conference Call Participants Cindy Cheung Good afternoon. Welcome to the Swire Pacific 2020 Interim Results Announcement Analyst Briefing Live Webcast. Thank you for joining us. May we first introduce our speakers for today ...

Financial Performance - Total revenue for 2019 was HKD 85,652 million, a 1% increase from HKD 84,606 million in 2018[8] - Operating profit decreased by 55% to HKD 13,792 million from HKD 30,888 million in the previous year[8] - Profit attributable to shareholders dropped by 62% to HKD 9,007 million compared to HKD 23,629 million in 2018[8] - Cash generated from operations fell by 30% to HKD 12,817 million from HKD 18,328 million in 2018[8] - Net cash inflow before financing increased by 28% to HKD 22,910 million from HKD 17,919 million in the previous year[8] - The return on equity for 2019 was 3.3%, down from 9.0% in 2018, reflecting a decline of 5.7 percentage points[7] - The company's attributable basic profit reached HKD 17,797 million, representing a 109% increase compared to HKD 8,523 million in the previous year[10] - Basic earnings per share for 'A' shares increased by 109% to HKD 11.85 from HKD 5.68, while 'B' shares rose to HKD 2.37 from HKD 1.14[10] - The adjusted recurring profit for 2019 was HKD 10.59 billion, compared to HKD 9.51 billion in 2018, reflecting a significant increase[29] - The company reported a net profit attributable to shareholders of HKD 11,007 million in 2019, a significant decrease of 53% compared to HKD 23,437 million in 2018[47] Debt and Equity - Total equity, including non-controlling interests, rose by 1% to HKD 329,494 million from HKD 325,115 million[8] - Net debt decreased by 25% to HKD 46,688 million from HKD 62,667 million in 2018[8] - The net debt to equity ratio improved to 14.2%, a decrease of 5.1 percentage points from 19.3%[8] - The net debt-to-capital ratio at the end of 2019 was 14.2%, down from 19.3% at the end of 2018, with cash and undrawn financing amounting to HKD 40 billion[13] Dividends - The company maintained a dividend of HKD 3.00 per share, unchanged from the previous year[7] - The company maintained its dividend at the same level as 2018, distributing approximately 48% of basic profit as dividends over the past five years[14] - The company announced a second interim dividend of HKD 1.65 per 'A' share and HKD 0.33 per 'B' share, totaling HKD 3.00 per 'A' share and HKD 0.60 per 'B' share for the year[30] Sector Performance - The real estate sector was the largest source of profit, contributing HKD 62.69 billion in recurring profit, up from HKD 61.77 billion in 2018[29] - The aviation sector reported a profit of HKD 1.55 billion in 2019, down from HKD 1.78 billion in 2018, primarily due to challenges faced by Cathay Pacific[29] - The recurring profit from Swire Coca-Cola in 2019 was HKD 1.58 billion, an increase from HKD 1.35 billion in 2018[29] - The marine services sector recorded a recurring loss of HKD 1.34 billion in 2019, compared to a loss of HKD 1.12 billion in 2018[29] Market Challenges - The company anticipates significant challenges in 2020 due to the adverse effects of the COVID-19 pandemic, particularly impacting Cathay Pacific, with expected recurring losses in the first half of 2020[20] - The company noted a significant decline in office rental demand in Hong Kong starting in the second half of 2019 due to social events[29] - The retail sales in Hong Kong have been adversely affected by the COVID-19 pandemic, social events, and economic uncertainty, with a forecasted decline in aircraft maintenance demand due to reduced flight numbers[33] - The company anticipates a decline in rental income from retail properties and serviced apartments due to the impact of the COVID-19 pandemic[32] Property Development - The total floor area of completed properties in Hong Kong, including hotels, is 12.6 million square feet, with an additional 1.2 million square feet under construction[41] - In mainland China, the total area of commercial developments will reach 9.8 million square feet, with 9 million square feet already completed[41] - The company completed the sale of its 100% interest in two office buildings in Taikoo City in April 2019 and a 50% interest in another office building in July 2019[58] - A joint venture was established in July 2019 to acquire land in Jakarta for a residential project expected to provide over 400 units, slated for completion in 2023[58] - The company plans to relocate its facilities to a new airport in Xiamen, with discussions ongoing with local authorities[31] Future Outlook - The company plans to continue its long-term growth strategy, reflecting ongoing growth in mainland China and maintaining Hong Kong's status as a major international financial center[20] - The company expects stable office rental rates in Shanghai due to high occupancy rates in the Jing'an core business district despite weak demand[32] - The company anticipates that the demand for residential properties in the medium to long term will remain stable despite current weaknesses in the market[33] - The company plans to continue expanding its property portfolio in the future[61] Cathay Pacific Performance - Cathay Pacific Group's revenue for 2019 was HKD 15,901 million, an increase from HKD 14,892 million in 2018, representing a growth of 6.8%[133] - The operating profit for Cathay Pacific Group was HKD 1,048 million in 2019, down from HKD 1,140 million in 2018, reflecting a decrease of 8.1%[133] - The passenger revenue for Cathay Pacific Group was HKD 72,168 million, a decline of 1.3% from HKD 73,119 million in 2018[135] - The cargo revenue for the group decreased by 15.9% to HKD 23,810 million from HKD 28,316 million in 2018[135] - Cathay Pacific's financial performance for the year ending September 30, 2019, showed improvement compared to the previous year, with a significant gain from the sale of part of its stake in China Cargo Airlines, recording a profit of HKD 114 million[149] HAECO Performance - The revenue for Hong Kong Aircraft Engineering Company (HAECO) was HKD 15,901 million in 2019, an increase from HKD 14,892 million in 2018, reflecting a growth of approximately 6.8%[152] - HAECO's attributable profit for 2019 was HKD 825 million, up from HKD 760 million in 2018, indicating an increase of about 8.6%[155] - HAECO's operating profit for 2019 was HKD 1,048 million, down from HKD 1,140 million in 2018, reflecting a decrease of approximately 8.1%[152] - HAECO's share of profit from Hong Kong Aircraft Engineering Company increased by 11% to HKD 415 million, driven by an increase in the number of engines serviced[161] Swire Coca-Cola Performance - In 2019, Swire Coca-Cola recorded attributable profit of HKD 1.686 billion, including non-recurring gains of HKD 85 million from the sale of a factory in Yunnan, China, and HKD 17 million from the sale of a sales center in the US[180] - Total revenue increased by 5% to HKD 44.719 billion, with sales volume rising by 2% to 1.786 billion standard boxes[180] - In mainland China, attributable profit was HKD 941 million, with a 35% increase in profit after excluding non-recurring gains from the sale of a factory[191] - In Hong Kong, attributable profit decreased by 10% to HKD 207 million, with total sales volume down by 3%[193]