Swire Pacific Limited Class A · HKEX:19
Swire Pacific Limited Class A — Swire Pacific Ltd A — FY2024 Earnings Presentation
40 slides from Swire Pacific Limited Class A's earnings presentation, Mar 13, 2025
Slide 1: 2024 Annual Results Analyst Briefing
IDE Swire PACIFIC 2024 ANNUAL RESULTS ANALYST BRIEFING 13TH MARCH 2025 | HONG KONG
Slide 2: Disclaimer
DISCLAIMER 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 rel
Slide 3: Agenda
AGENDA F I N A N CIA L H IGH L I GH TS A N D GR O U P C O R PO RA TE S TR A TE GY 2 0 2 4 F IN A N CIA L PE R F O RMA NCE S U S TA IN A BILITY U PD A TE B U S IN ES S R E V IEW O U TLO O K Q& A 3
Slide 4: Financial Highlights and Group Corporate Strategy
FINANCIAL HIGHLIGHTS AND GROUP CORPORATE STRATEGY GUY BRADLEY, CHAIRMAN 4
Slide 5: Swire Pacific – Strategic Highlights
SWIRE PACIFIC – STRATEGIC HIGHLIGHTS ▪ Good results in a challenging operating environment. ▪ Upward trajectory continued for Aviation Division. Solid performance from Property and Beverages. ▪ Continued investment and capital recycling on the back of strong financial position demonstrates our confi
Slide 6: Swire Pacific – 2024 Highlights
SWIRE PACIFIC – 2024 HIGHLIGHTS 11% Recurring Underlying Profit 5% Ordinary Dividend per ‘A’ Share HK$9.3Bn 2023: HK$10.4Bn HK$3.35 2023: HK$3.20 Recurring Underlying Profit 2024: HK$5.3Bn 2024: HK$1.4Bn(1) 2024: HK$4.6Bn 11% 2023: HK$5.9Bn 42% 2023: HK$2.4Bn(1) 31% 2023: HK$3.5Bn 2024 2023 2024 202
Slide 7: Swire Pacific – Business Performance
SWIRE PACIFIC – BUSINESS PERFORMANCE ▪ Strong recurring underlying profit of HK$9.3Bn. ▪ Focus on delivering value for shareholders through progressive dividend policy and share buy-back programme. PROPERTY BEVERAGES AVIATION FINANCIAL HEALTH ▪ Robust financial position with gearing ratio of 22.1% ▪
Slide 8: 2024 Financial Performance
2024 FINANCIAL PERFORMANCE MARTIN MURRAY, FINANCE DIRECTOR 8
Slide 9: 2024 Financial Summary
2024 FINANCIAL SUMMARY We remain very confident in our ability to generate cash despite the decrease, as demonstrated by a 5% growth in dividend per share Statutory Profit Underlying Profit Recurring Underlying Profit 2023: HK$28,853m 2023: HK$36,177m 2023: HK$10,449m 2024: HK$4,321m 85% 2024: HK$10
Slide 10: 2024 Financial Summary – Reconciliation of Profits
2024 FINANCIAL SUMMARY – RECONCILIATION OF PROFITS 2024 2023 HK$M HK$M Sale of Taikoo Shing carparks Statutory Profit 4,321 28,853 Mainly deemed disposal Adjustments in respect of investment properties 6,150 7,324 gains of Air China and Air China Cargo (1), gains on Underlying profit attributable to
Slide 11: 2024 Movement in Underlying Profit
2024 MOVEMENT IN UNDERLYING PROFIT HK$M Lower gain on sale of investment properties 40,000 and loss on exiting HAECO 36,177 (670) ITM, partly offset by (1,006) 1,106 (206) (1,415) lower impairment 35,000 charges, remeasurement (608) gain on TNTC and disposal gain on non-current 30,000 assets in HAEC
Slide 12: 2024 Financial Summary – Profit/(Loss) by Division
2024 FINANCIAL SUMMARY – PROFIT/(LOSS) BY DIVISION Recurring underlying profit/(loss) Underlying profit/(loss) 2024 2023 2024 2023 HK$M HK$M HK$M HK$M Sale of Taikoo Shing carparks Property 5,272 5,942 5,509 9,455 Remeasurement and Beverages 1,388 2,394 2,039 25,097 exchange gain on TNTC Mainly deem
Slide 13: 2024 Financial Summary – Net Debt and Gearing
2024 FINANCIAL SUMMARY Net Debt Movements (HK$Bn) Gearing Ratio Net debt at 1st January 2024 55.1 HK$M % 400,000 30.0 Cash from operations (12.6) 23.7 25.0 Disposal proceeds (1.9) 300,000 19.5 18.5 20.0 Capex and investments 17.3 13.8 13.6 22.1 200,000 18.0 15.0 Net dividends paid 3.4 17.0 10.0 100,
Slide 14: 2024 Financial Summary – Liquidity and Maturity Profile
2024 FINANCIAL SUMMARY December December December December Change % Swire Pacific 2021 2022 2023 2024 (December 24 vs • Issued USD500m HK$M HK$M HK$M HK$M December 23) 5-year public bond in July 2024 Bank balances and short-term deposits 22,894 11,614 14,082 21,028 +49% • Coupon of 5.125% Total undr
Slide 15: Sustainability Update
SUSTAINABILITY UPDATE TARGETS PROGRESS (4) 50% reduction in greenhouse gas emissions (1) Remain on track to meet our 2030 target, having reduced our emissions by 40% against our by 2030 and Net-Zero by 2050 2018 baseline. We achieved a CDP Climate score of A- 65% waste diversion from landfill (2) by
Slide 16: Sustainability Update
SUSTAINABILITY UPDATE Continuing to make progress on sustainability goals ► Adopter of the Taskforce on Nature-related Financial Disclosures (TNFD) ► Sustainable Development Fund committed HK$91 million to nine innovation and sustainability projects across operating companies in support of our goals
Slide 17: Business Review
BUSINESS REVIEW GUY BRADLEY, CHAIRMAN MARTIN MURRAY, FINANCE DIRECTOR KAREN SO, MANAGING DIRECTOR, SWIRE COCA-COLA 17
Slide 18: Property – 2024 Overview
PROPERTY – 2024 OVERVIEW Increased investment in the Greater Bay Area Projects Update Dow Jones Feb 24 Six Pacific Place, Hong Kong Best-in-Class Obtained occupation permit. World Index (formerly known as Aug 24 Taikoo Li Julong Wan Guangzhou (1) DJSI World Index) Announced a 50% joint venture to de
Slide 19: Property – 2024 Overview
PROPERTY – 2024 OVERVIEW Decrease in underlying profit reflecting lower disposal gain and lower office rental, partly due to disposal of nine floors of One Island East in 2023 Underlying Profit (100% Basis) Movement in Underlying Profit (100% Basis) HK$M Total Total HK$M 12,000 $6,713 -42% $11,531 1
Slide 20: Property – HK$100 Billion Investment Plan
PROPERTY – HK$100 BILLION INVESTMENT PLAN A clear roadmap for growth over the next decade Chinese Mainland – Retail-led mixed-use projects in Tier-1 / emerging Tier-1 cities; doubling of GFA by 2032 HK$ 46 Bn ▪ Taikoo Li Xi’an ▪ Taikoo Li Sanya (2) HK$ 50 Bn ▪ Increased stake at Taikoo Li Chengdu ▪
Slide 21: Property – Upcoming Projects
PROPERTY – UPCOMING PROJECTS (1) Making good progress with our exciting pipeline Expected Attributable Expected GFA to be Completed Completion Year 2025 2026 2027 2028 onwards Artist Impression Artist Impression Artist Impression +13.3 M Savyavasa, Jakarta Taikoo Place Beijing (2) Taikoo Li Xi’an Wi
Slide 22: Property – Hong Kong Portfolio
PROPERTY – HONG KONG PORTFOLIO ▪ Office occupancy remained steady and outperformed relevant submarkets, with overall occupancy (6) at 93%. ▪ Retail remained resilient with full occupancy. Pacific Place (4) The Mall, Pacific Place Cityplaza 2.2M sq ft Occupancy 95% GFA Rental Reversion ▼16% Latest Re
Slide 23: Property – Chinese Mainland Portfolio
PROPERTY – CHINESE MAINLAND PORTFOLIO ▪ Strong growth engine. ▪ Chinese Mainland portfolio contributed 41% attributable gross rental income in 2024. (1) ▪ Balanced contributions between Chinese Mainland retail and Hong Kong office portfolios. Attributable Gross Rental Income (1) Attributable Gross R
Slide 24: Beverages – Swire Coca-Cola – Expanding South East Asia Footprint
BEVERAGES – SWIRE COCA-COLA – EXPANDING SOUTH EAST ASIA FOOTPRINT GREATER CHINA SOUTH EAST ASIA ▪ Profits increased in the Chinese Mainland ▪ Acquired equity interests of ThaiNamthip Corporation Public Company Limited and Taiwan driven by increases in revenue. (TNTC) with franchise businesses in Tha
Slide 25: Beverages – Swire Coca-Cola – 2024 Overview
BEVERAGES – SWIRE COCA-COLA – 2024 OVERVIEW EBITDA decreased by 27% largely due to the disposal of SCCU EBITDA ▪ Chinese Mainland – EBITDA, excluding non-recurring gain, increased by 8%. The increase in revenue (with effective revenue growth management and market execution) and lower raw material co
Slide 26: Beverages – Swire Coca-Cola – 2024 Overview
BEVERAGES – SWIRE COCA-COLA – 2024 OVERVIEW Recurring profit increased by 20% excluding SCCU contribution and management fee Recurring Attributable Profit/(Loss) 2024 Category Mix 2024 Revenue Source HK$M 70% 70% 3,000 Total $2,394 2,500 2,000 Total $1,388 1,313 6% 1,500 265 6% 14% 6% 12% 6% 235 5%
Slide 27: Beverages – Swire Coca-Cola – Diversified Portfolio
BEVERAGES – SWIRE COCA-COLA – DIVERSIFIED PORTFOLIO EBITDA margin remained stable at 12.5% with impact of disposal of SCCU offset by the newly acquired franchise businesses in Thailand and Laos Revenue by Region EBITDA Margin by Region HK$M 30,000 +3% 20% 18.6% +3% % growth in HK dollar terms 16.6%
Slide 28: Aviation – 2024 Overview
AVIATION – 2024 OVERVIEW Continuing robust demand for travel and cargo Attributable Profit/(Loss) Key Financial Data HK$M Total Total HK$M 2024 2023 Change % $4,697 $3,393 6,000 HAECO group 45 5,000 5 399 130 Revenue 21,662 17,787 +22% 4,000 3,000 Attributable profit Title and Content 399 45 +787% 5
Slide 29: Aviation – Cathay – 2024 Overview
AVIATION – CATHAY – 2024 OVERVIEW Second consecutive profitable year Liquidity and gearing back to historical levels Group Profit/(Loss) Available Unrestricted Liquidity (HK$Bn) (HK$Bn) 15 28.6 30.3 27.2 9.9 9.8 20.3 20.1 22.4 19.8 20.0 20.0 19.1 10 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 30: Aviation – Cathay – 2024 Overview
AVIATION – CATHAY – 2024 OVERVIEW Bringing in new aircraft A320/1neo (2nd order) 777-9 ▪ Started adding more than 100 new- generation aircraft to the fleet to meet increasing demand arising from the launch of the Three-Runway System A350F A330-900 Title and Content Financial ▪ Bought back the remain
Slide 31: Aviation – Cathay – Outlook
AVIATION – CATHAY – OUTLOOK Travel ▪ The launch of the Three-Runway System marks a new phase of growth and development for the Hong Kong international aviation hub. ▪ 11 new destinations to be added to Cathay group’s network in 2025 – will operate passenger flights to more than 100 destinations arou
Slide 32: Aviation – HAECO – 2024 Overview
AVIATION – HAECO – 2024 OVERVIEW ▪ Recurring profit increase driven by ongoing recovery of line maintenance activity, demand for engine overhaul at HAESL and HAECO Engine Services (Xiamen) and increase in base maintenance manhours sold. ▪ Attributable profit includes non-recurring items of a loss of
Slide 33: Healthcare – 2024 Overview
HEALTHCARE – 2024 OVERVIEW ▪ DeltaHealth: Completed acquisition of DeltaHealth, which specialises in cardiovascular care, in April 2024. ▪ Columbia China: Total patient revenue increased by 10% year-on-year due to steady growth at Kaiyuan Orthopedic Hospital, and continued ramp-up of Columbia’s Wuxi
Slide 34: Outlook
OUTLOOK GUY BRADLEY, CHAIRMAN 34
Slide 35: Outlook
OUTLOOK ▪ Market headwinds continue in 2025. ▪ Focus on execution of the recent investments made across the core markets. ▪ Continue to look for opportunities to expand our business, particularly in the Greater Bay Area. ▪ Building on the collective strength of businesses, continue to deliver value
Slide 36: Q&A
Q&A 13TH MARCH 2025 | HONG KONG 36
Slide 37: 2024 Annual Results Analyst Briefing
IDE Swire PACIFIC 2024 ANNUAL RESULTS ANALYST BRIEFING 13TH MARCH 2025 | HONG KONG
Slide 38: Appendix
APPENDIX 13TH MARCH 2025 | HONG KONG 38
Slide 39: 2024 Financial Summary – Return on Equity
2024 FINANCIAL SUMMARY – RETURN ON EQUITY 5-year 2024 average 15% Return on Equity 1.6% 2.2% Derived from: Recurring underlying profit 3.5% 2.1% 10% Net non-recurring items 0.4% 1.5% Net property valuation adjustments -2.3% -1.4% Net Disposal and Property Disposal Dividends and Remeasurement and Val
Slide 40: Healthcare – DeltaHealth – Strategic Focus on Cardiovascular Care
HEALTHCARE – DELTAHEALTH – STRATEGIC FOCUS ON CARDIOVASCULAR CARE ▪ Inpatient volume dropped due to the 2024 Revenue Mix 2024 Specialty Mix backlog of cases post-pandemic in early 2023. Outpatient volume recorded steady growth in 2024. 25% Cardiac Procedure volume was flat. 29% ▪ Cardiovascular care