Swire Pacific : 2017 Interim Results

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability)

Swire Pacific Limited INTERIM REPORT 2017

CONTENTS

Our Strategy

1

Financial Highlights

2

Chairman's Statement

3

Review of Operations

5

Financial Review

33

Financing

34

Report on Review of Condensed Interim Financial Statements

39

Interim Financial Statements

40

Notes to the Interim Financial Statements

45

Supplementary Information

73

Glossary

77

Financial Calendar and Information for Investors

78

We concentrate on businesses where we have expertise, and where our expertise can add value. Our aim is sustainable long-term growth in shareholder value.

• We deploy capital and people where we see opportunities to generate returns which exceed our cost of capital over the long term.

• We invest in existing and new businesses, focussing on those where we have a competitive advantage and where our capital and people can generate long-term value.

• We divest from businesses which have reached their full potential and deploy the capital released to existing or new businesses.

• Our people, and our ability to deploy them across our businesses (which is facilitated by services agreements with our principal shareholder), are critical to our ability to generate long-term value. We recruit the best people and invest heavily in their training and development.

• We are conservative financial managers. This lets us execute long-term investment plans irrespective of short-term financial market volatility.

• We provide premium quality products and services, so as to differentiate ourselves from our competitors.

• We invest in sustainable development, not just because it is the right thing to do, but because it helps to achieve long-term growth through innovation and improved efficiency.

• We are committed to the highest standards of corporate governance and to the preservation and development of the Swire brand.

In implementing the above strategy, the principal risks and uncertainties facing the Group are that the economies in which it operates (in particular Hong Kong and Mainland China) will not perform as well in the future as they have in the past and the uncertainties as to whether this will happen.

We are and intend to remain a conglomerate with diverse businesses capable of generating sustainable long-term growth in value.

1

Financial Highlights

Six months ended 30th June

Year ended 31st December

Earnings per share (a)

'A' share 8.07 3.36

+140%

6.41

'B' share 1.61 0.67 1.28

Div idends per share

'A' share 1.00 1.00

-2.10

'B' share 0.20 0.20 0.42

Equity attributable to the Company's shareholders per share

'A' share 157.12 146.68

+7%

149.50

'B' share 31.42 29.34 29.90

UNDERLYING PROFIT

Six months ended 30th June

Year ended 31st December

Underlying profit attributable to the Company's

2017 2016 Change 2016

HK$M HK$M % HK$M

shareholders (b) 3,880 3,548 +9% 3,063

HK$ HK$ HK$

Underlying earnings per share (a)

'A' share 2.58 2.36

+9%

2.04

'B' share 0.52 0.47 0.41

Notes:

1. Refer to note 11 to the interim financial statements for the weighted average number of shares.

2. A reconciliation between the reported and underlying profit attributable to the Company's shareholders is provided on page 33, together with a statement showing underlying profit attributable to shareholders adjusted to show the effect of other significant items.

2