CHIEF EXECUTIVE’S STATEMENT Overall, we delivered a steady performance in 2022. We have made encouraging progress implementing our ambitious HK$100 billion investment plan to expand our portfolios in core markets in Hong Kong, the Chinese Mainland and South East Asia. Dear shareholders, 2022 Financial Results at a Glance As we move forward into a post-COVID-19 era, we remain Our underlying profit decreased by HK$826 million from focused on investing in our growth and building on the HK$9,532 million in 2021 to HK$8,706 million in 2022, future of our business. While we experienced our share of which mainly reflected the decrease in profit from the sale setbacks in 2022 due to the challenging operating of car parking spaces in Hong Kong. Recurring underlying environment, we were well prepared to respond effectively profit was HK$7,176 million in 2022, compared with to the gradual recovery in the latter half of 2022. HK$7,143 million in 2021. Overall, we delivered a steady performance in 2022. Our recurring underlying profit from property investment We have made encouraging progress implementing our decreased in 2022, due primarily to lower office rental ambitious HK$100 billion investment plan to expand our income from Hong Kong and lower retail rental income portfolios in core markets in Hong Kong, the Chinese from the Chinese Mainland. Mainland and South East Asia. In Hong Kong, we operated in a weaker office market due to 2022 was a special year for Swire Properties as we new supply and economic uncertainty. However, our office celebrated our 50th anniversary with colleagues, portfolio remained resilient with solid occupancy rates. customers, tenants and the wider community through a The retail market in Hong Kong experienced severe diverse and colourful programme of events. Throughout disruption in the early part of the year, due to the fifth the year, our colleagues have demonstrated leadership, COVID-19 wave, related social distancing measures and resilience and creativity, both in their response to the mandatory closures. Despite this challenging start, we saw challenges of the pandemic and to the fantastic events a recovery in footfall and tenants’ sales from the second which have been held all around the world to mark this quarter of 2022 onwards, following the gradual relaxation anniversary milestone. of restrictions and the introduction of the HKSAR The easing of COVID-19 restrictions in Hong Kong and Government’s consumption voucher scheme. Rental the Chinese Mainland marks a key turning point for the concessions were given to tenants for specific periods on economic recovery across our core markets. Undoubtedly a case-by-case basis. Our malls remained almost fully let challenges still lie ahead but we remain confident in our throughout the year. core markets in Hong Kong and the Chinese Mainland. Retail sales in the Chinese Mainland started strongly in We will continue to grow our pipeline of new projects 2022, with a full year contribution from our new Taikoo Li based on our HK$100 billion investment plan, promote Sanlitun West and Taikoo Li Qiantan developments. From leadership in sustainability and accelerate our digital the second quarter, our six shopping malls were affected to transformation strategy. varying degrees by the pandemic and ensuing city-wide closures, particularly in Shanghai and Beijing. As a result, 24