Swire Pacific Limited
(Incorporated in Hong Kong with limited liability)

For immediate release

10th March 2016

Our consolidated profit attributable to shareholders for 2015 was HK$13,429 million, HK$2,360 million higher than in 2014. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$153 million or 2% to HK$9,892 million.

There were higher underlying profits from the Cathay Pacific group and the Beverages Division. There were lower underlying profits from the HAECO group and the Trading & Industrial Division. The Marine Services Division made an underlying loss. The underlying profits of the Property Division were little changed. Underlying profits were also recorded on the sale of eight units at OPUS HONG KONG, a property owned directly by Swire Pacific.

Below is a summary of the 2015 annual results:

2015 Annual Results Summary

Divisional Highlights:

Property Division

• Underlying attributable profit was HK$5,791 million, a decrease of 1% compared with 2014.
• Excluding a loss on the sale of four hotels in the UK, underlying profit increased by 2%.
• Profits from property investment benefited from firm demand for office space in Hong Kong and for retail space in Mainland China.
• There were higher profits from property trading, principally reflecting completion of the sales of the majority of the units at the AREZZO development in Hong Kong.
• The hotel results were affected by the loss on disposal of four hotels in the UK and pre-opening costs at new hotels in Mainland China and the USA.

Aviation Division

• Attributable profit from the Aviation Division was HK$3,017 million in 2015, compared with an attributable profit of HK$1,822 million in 2014.
• The Cathay Pacific group's attributable profit was HK$2,700 million, compared with an attributable profit of HK$1,418 million in 2014.
• Cathay Pacific's results benefited from generally firm passenger demand and lower fuel prices. The contribution from Air China rose significantly. Cargo demand was weak.
• The HAECO group's attributable profit was HK$349 million, 19% lower than in 2014.
• HAECO Hong Kong's results benefited from higher demand for airframe services work and better line services results. HAECO Americas and HAECO Xiamen did less airframe services work.
• HAESL and SAESL's profits fell as they overhauled fewer Rolls-Royce engines. TEXL overhauled more GE90 engines, but its profits fell because of absence of tax losses.

Beverages Division

• The Beverages Division recorded an attributable profit of HK$976 million in 2015, an increase of 14% over 2014.
• This increase reflected better results in Hong Kong, Taiwan and the USA. Profits were slightly down in Mainland China.
• Overall sales volume increased by 4% to 1,083 million unit cases.
• Sales volume grew strongly in the USA, reflecting the inclusion of sales for a full year from territories in Colorado assumed in 2014. Volume increased slightly in Mainland China.
• In September 2015, Swire Beverages Holdings Limited acquired additional interests in three of its subsidiaries in Mainland China for HK$1.5 billion.
• Conditional agreements were entered into in 2015 to assume additional franchise territory in Arizona, USA and to acquire production assets in Colorado and Arizona, USA.

Marine Services Division

• Swire Pacific Offshore ("SPO") recorded a loss of HK$1,285 million compared with a profit of HK$1,041 million in 2014.
• SPO's results were adversely affected by the difficult market conditions caused by the significant decline in the oil price. This put pressure on charter hire rates and utilisation.
• SPO also recorded impairment charges in relation to vessels of HK$743 million and in relation to the cancellation of shipbuilding contracts in Brazil of HK$485 million.
• SPO's fleet utilisation decreased by 11.7 percentage points to 74.9% and its average daily charter hire rates decreased by 10% to USD27,100.

Trading & Industrial Division

• The attributable profit of the Trading & Industrial Division was HK$155 million, a 63% decrease when compared to 2014.
• The decrease principally reflected the termination of Volkswagen and Škoda importerships in Taiwan at Taikoo Motors at the end of 2014.
• There were also weaker results from Akzo Nobel Swire Paints, costs associated with developing the Swire Pacific Cold Storage business and losses from Swire Environmental Services.
• This was partly offset by higher profits from Swire Retail and Swire Foods, the latter principally reflecting a full year of results from the 65% interest in Chongqing New Qinyuan Bakery Co. Ltd.

Visit Swire Pacific's website at www.swirepacific.com

For more information, please visit http://doc.irasia.com/listco/hk/swire/annual/2015/respress.pdf

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