Swire Pacific Ltd A

Good afternoon, ladies and gentlemen, welcome to slide Pacific 2026 interim results analyst briefing. Today at the briefing are Mr. Guy Bradley, chairman of slide Pacific, Mr. Martin Murray, finance director of five Pacific and Miss Karen, so chief executive officer of fire Coca Cola. Before we take a detailed look at our results, we'd love to show you a short video highlighting five Pacific key developments and achievements in the first half of 2026. Please enjoy the video. So So May we now invite Guy, Martin and Karen to take us through the details of the results.

Thank you. Good evening everybody and thank you for joining us. I will just kick off with a couple of strategic highlights here. The two points I'd like to emphasise are basically that the first half recurring underlying profit is the highest underlying profit that we've reported. and that's driven basically by consumer sentiment in all of our divisions improving and that's a very good trend to see. The second highlight of course is that we haven't stopped investing and the levels of investments that we have across all our businesses are indeed record levels of capital for the group. So two very good Highlights for the half year. If I look at the specific details across the three main divisions in property, we continue to execute against the $100 billion plan. We've currently got seven projects in the Chinese mainland under development, which is more than we've ever had in our history, and two of which will open in phases, at least start to open later this year in Sanya and in Beijing at Taiku Place. on the trading side also it's worth highlighting that we've got we're doing a lot more of that and we've got very good projects going on in Miami and Bangkok what the slide doesn't say is that we've also got quite a lot going on in Hong Kong our home base where our residential trading brand is extremely well known and well regarded and I can list 269 Queens Road East, La Montagna Headland Residences and the projects in Panhoy Street so we've got four projects there to be going on with. So quite a lot of activity on the residential trading side. Switching over to beverages, the integration of the new franchises in Southeast Asia is progressing well. We're very happy that we're able to expand firstly into Vietnam, Cambodia, and then into Thailand and Laos. those territories are in the process of integrating into our business at all sorts of levels and we're happy with how that's all going so far. Focusing on the Chinese mainland, we have a RM12 billion investment plan to open up new facilities and to invest in market cold drink equipment and we continue to push that out. On the aviation side, you heard yesterday about the Cathay Pacific Group and their $150 billion investment. But I'd just like to highlight the HACO side of aviation here. And they have a new Charman facility opening later in the year. And they've just announced a new investment in Vietnam as their first expansion of the of the base maintenance business into Southeast Asia. So lots going on. On the financial side, Martin will cover that shortly in more detail. We're very happy to report that underlying profits increased by 43% versus prior year to 7.8 billion. And in turn, we've announced a 15% increase in the first interim dividend to $1.50 per A share. Just looking at the recurring level by division, the recurring underlying profit for the first half was $7 billion which was up 48% and the positive news was across all the three major divisions as you can see here, 37% up in property, driven obviously by residential trading and that extremely good sale of the 6th Deepwater Bay Road property but also accelerating retail performance in both Hong Kong and the Chinese mainland. On the beverage side they had a good year and driven mostly by an improvement in the Chinese mainland and so IUP was up 5% in beverages and aviation 39% increase Cathay speaks for itself. You've seen that yesterday, but I'd also like to say that there's a very good sort of robust demand for Hayco and their base maintenance and engine overhaul services. So very encouraging signs across the three major divisions in terms of profit contribution. With that, I will ask Martin to dive into the financial side in a bit more detail. Thank you.

Thank you, Chip. as the chairman mentioned all the core divisions are performing incredibly well on the back of strong consumer sentiment which has led to strong profit at both the underlying and the recurring level which is very pleasing to see you can see that that leads to strong cash flow, reduced gearing which allows us to have the record investment and maintain our progressive dividend which is up 15% This slide is a bit repetitive. It shows the movement in the recurring underlying profit that the chairman mentioned was at record levels. So in the property division, up 37%, primarily driven by the residential trading profit of the sale of 60 Wodeby Road, but also the continued robust retail sales in the Chinese mainland and some positive momentum in retail in Hong Kong, which is pleasing to see. Beverage is up 5%, improving consumer sentiment in the Chinese mainland. Some more challenges in Southeast Asia, some of the commodity prices have gone up. But again, the integration of that continues to go well. On the aviation side, really strong performance, up 39% driven. mainly by the high load factors yields from Cathay Pacific despite the higher oil price in the second quarter and HECO continues to go well in both the base maintenance and the engine side. Lower interest rates helping the head office and other costs. On the non-recurring items, these are mainly from the aviation division in the first half of 2026. You'll see the $309 million and the $434 million It relates to the sale of the cafes here at the Smart Pacific level to get us back to the 45% and the 434 is the gain on the deemed disposal in cafe of Air China. Last year, the big movement came from property investment, which was the Miami sale. That's the 833 in 2025. On the liquidity piece, there is some refinancing in 2029. We're going through that process now and we'll push that out to the 2031, 2032. We have our debt has come down 4% and we average cost of debt is down as well at 3.4%. So we're in great shape on the balance sheet. Our fixed rate borrowing is at 75%. and then this is just the overall picture that we get asked about in terms of the overall strategy as I said we actively manage our balance sheet prudently our gaining has come down to 19.3% weighted average cost of debt 3.4% 75% of fixed borrowing rate our primary objective strategically is for long term strategic investments which we are doing at record levels across all our core divisions and then we focus on operational excellence driving up returns through targets from each of the businesses Roy mentioned earlier in the property business doing more residential trading for example and at the same time maintaining our dividend growth strategy and potentially looking at share buyback but it's in that order with that I will oh sorry there's a sustainability slide I do forget I apologise So we have launched our SD 2050 slide strategy and we've moved it into reporting like the IFSB so climate, nature and social so waste and water in that piece and then the left hand side you'll see our 2030 targets and on the right hand side progress against that so we've almost achieved our 2030 targets across climate and nature and hit our targets for people and focus on the community. So making strong progress on our sustainability targets. With that I'll pass back to you Jim.