MESSAGE FROM THE CHAIRMAN

Our consolidated profit attributable to shareholders for 2013 was HK$13,291 million, HK$4,119 million lower than in 2012. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$201 million or 2% to HK$8,471 million. Adjusted to exclude the effect of non-recurring items, underlying profit increased by HK$578 million or 7% to HK$8,414 million. This increase in underlying profit reflects higher profits from the Cathay Pacific group and from the Beverages and Marine Services Divisions. There were lower profits from the Property and Trading & Industrial Divisions and from the Hong Kong Aircraft Engineering Company Limited ("HAECO") group.

The Directors have declared second interim dividends of HK$2.50 (2012: HK$2.50) per 'A' share and HK$0.50 (2012: HK$0.50) per 'B' share which, together with the first interim dividends of HK$1.00 per 'A' share and HK$0.20 per 'B' share paid in October 2013, amount to full year dividends of HK$3.50 per 'A' share and HK$0.70 per 'B' share, the same as those paid in respect of 2012. The second interim dividends, which total HK$3,761 million (2012: HK$3,761 million), will be paid on 9th May 2014 to shareholders registered at the close of business on the record date, being Friday, 11th April 2014. Shares of the Company will be traded ex-dividend from Wednesday, 9th April 2014.

Sustainable development is part of our long term strategy. Our ultimate goal is for our operating companies to achieve zero impact on the environment. We also try to achieve zero harm to those involved in our operations. Sustainability matters are considered under five headings, which we call pillars: environment, health and safety, community, staff and working with others.

The commitment and hard work of employees of the Group and its joint venture and associated companies are central to our continuing success. I take this opportunity to thank them.

Christopher Pratt
Chairman
13th March 2014

For more information on the 2013 results of each of our operating divisions, please go to Performance Review and select a division.

For more information on the 2013 sustainable development highlights, please go to the Sustainable Development Review and select a sustainable development pillar.