Swire Pacific 2020 Key Business Highlights - Transcript

2020 Key Business Highlights

  • Extremely challenging business environment as a resut of COVID-19
  • Cathay Pacific was particularly hard hit
  • Underlying (loss) / profit
    • 2020: HK$(3,969) million
    • 2019: HK$17,797 million
  • Recurring underlying (loss) / profit
    • 2020: HK$(609) million
    • 2019: HK$7,221 million

 

Response to challenges at Cathay Pacific

  • HK$39 billion recapitalisation completed in August 2020
  • Swire Pacific contributed HK$5.3 billion to the rights issue
  • HK$6.74 billion convertible bonds announced in January 2021
  • Corporate restructuring announced in October 2020
  • To create a more focused, efficient and competitive business

 

Investment Focus on Greater China

  • Upcoming new projects
  • Two Taikoo Place, Hong Kong
  • Taikoo Li Qiantan, Shanghai
  • Taikoo Li Sanlitun West, Beijing
  • Phase Two extension of INDIGO, Beijing
  • HAECO Xiamen’s relocation at new airport

 

Continued capital recycling

  • Disposal of Two and Three Brickell City Centre, Miami
  • Disposal of Cityplaza One
  • Listing of Cadeler

 

Balance sheet strength

  • Gearing ratio
    • 12.2%
    • Lowest since 2006
  • Liquidity headroom
    • HK$62 billion
  • Credit rating
    • S&P: A
    • Moody’s: A3
    • Fitch: A-
  • Dividend per ‘A’ share
    • HK$1.70
    • 5-year average payout 59%

 

Business resilience despite COVID-19

Swire Properties

  • Hong Kong office
    • Positive rental reversions
    • Firm occupancy, particularly at Taikoo Place
  • Chinese mainland retail
    • Higher retail sales

Swire Coca-Cola

  • Recurring profit
    • HK$2,076 million
    • +31%
  • Strong business performance in the Chinese mainland and the USA
  • Recurring profit (Chinese mainland)
    • HK$1,041 million
    • +22%
  • Recurring profit (the USA)
    • HK$797 million
    • +45%

 

New Investments in Healthcare

  • Associate investment in
    Columbia China Healthcare
  • Associate investment in
    a hospital being developed in Shenzhen

 

Community engagement

  • Swire Trust launched

    to support pandemic relief community projects
  • Continuous support for the Hong Kong Philharmonic Orchestra

 

Sustainable development

  • Revised sustainability strategy
    • SwireTHRIVE 2.0
  • First sustainability-linked loan
    • HK$2 billion five-year revolving credit facility
  • Listed on: