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COMPANY PROFILE

Hutchison Whampoa
Limited

REFERENCE CODE: 2B674A90-8E88-4E0A-874B-880F62BF87B0


PUBLICATION DATE: 21 Nov 2014
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Hutchison Whampoa Limited


TABLE OF CONTENTS

TABLE OF CONTENTS
Company Overview..............................................................................................3
Key Facts...............................................................................................................3
Business Description...........................................................................................4
History...................................................................................................................6
Key Employees...................................................................................................10
Key Employee Biographies................................................................................11
Major Products and Services............................................................................16
Revenue Analysis...............................................................................................18
SWOT Analysis...................................................................................................20
Top Competitors.................................................................................................26
Company View.....................................................................................................27
Locations and Subsidiaries...............................................................................32

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Hutchison Whampoa Limited


Company Overview

COMPANY OVERVIEW
Hutchison Whampoa Limited (Hutchison or the group) is a multinational conglomerate engaged in
diversified businesses, including, ports and related services, property and hotels, retail, infrastructure,
energy and telecommunications. The group operates in 52 countries across the world. It is
headquartered in Harcourt Road, Hong Kong and employs over 260,000 people.
The group recorded revenues of HK$256,234 million ($33,028.6 million) during the financial year
ended December 2013 (FY2013), an increase of 5.4% over FY2012. The operating profit of the
group was HK$52,084 million ($6,713.6 million) in FY2013, an increase of 19% over FY2012. The
net profit of the group was HK$31,112 million ($4,010.3 million) in FY2013, an increase of 20.1%
over FY2012.

KEY FACTS
Head Office

Hutchison Whampoa Limited


22nd Floor
Hutchison House
10 Harcourt Road
HKG

Phone

852 2128 1188

Fax

852 2128 1705

Web Address

http://www.hutchison-whampoa.com

Revenue / turnover 256,234.0


(HKD Mn)
Financial Year End

December

Employees

260,000

Hong Kong Ticker

00013

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Hutchison Whampoa Limited


Business Description

BUSINESS DESCRIPTION
Hutchison Whampoa Limited (Hutchison or the group) is an investment holding company. The
group has operations in 52 countries across Europe, North America, and Asia Pacific.
The group's operations primarily comprise six business segments: retail; telecommunications; port
and related services; property and hotels; infrastructure; and energy.
The group operates its retail segment through its subsidiary, A S Watson (ASW). ASW is a health
and beauty retailer in Asia and Europe, with a network of over 11,000 retail stores in 22 countries
worldwide. ASWs portfolio encompasses retail brands such as health and beauty specialist Watsons;
PARKnSHOP supermarket; FORTRESS electrical appliances chain; and Watsons Wine. It is also
a manufacturer and distributor of water products and beverages in Hong Kong and Mainland China
under the brand names of Watsons Water and Mr. Juicy. In Europe, the group operates a number
of health and beauty retail brands, chains - Drogas, including Kruidvat, Superdrug, Rossmann,
Savers, Trekpleister, Drogas, Spektr and Watsons. In addition, it also owns two luxury perfumeries
and cosmetics retail brands ICI PARIS XL and The Perfume Shop.
Hutchison's telecommunications segment is a global operator of mobile telecommunications and
data services. It operates through the fiber optic fixed line networks in Hong Kong serving as a
telecommunications gateway to China and rest of the world. The group offers a range of
telecommunication services, including, fourth generation (4G) long term evolution (LTE), third
generation (3G) multi-media mobile, second generation (2G) mobile and fixed-line services. It also
offers internet and broadband services, including, international connectivity services over both
fibre-optic and mobile networks. Hutchisons subsidiaries in the telecommunications markets include
Hutchison Telecommunications Hong Kong Holdings (HTHKH); Hutchison Asia Telecommunications
(HAT) and 3 Group Europe. HTHKH holds the group's interests in mobile operations in Hong Kong
and Macau, as well as fixed-line operations in Hong Kong. HAT holds the group's interests in the
mobile operations in Indonesia, Vietnam and Sri Lanka. The 3 Group Europe offers mobile
telecommunications and broadband services in five European countries.
Hutchison's port and related services segment includes the operations of Hongkong International
Terminals Limited (HIT), engaged in container terminal operations. The groups operations also
include Hutchison Port Holdings Limited (HPH), an international port investor, developer and operator.
The HPH network of port operations comprises 319 berths in 52 ports. In 2013, the HPH port network
handled a combined throughput of 78.3 million 20-foot equivalent units worldwide. The segment is
also engaged in mid-stream operations, river trade, cruise terminal operations and ports related
logistics services.
The group's property and hotels segment develops and invests in real estate projects, ranging from
office buildings to luxury residential properties. Hutchison holds a rental property portfolio of
approximately 14 million square feet of office, commercial, industrial and residential premises,
primarily in Hong Kong, as well as interests in a number of joint-venture developments in Mainland

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Business Description

China and selective overseas markets.The group also has ownership interests in 11 premium quality
hotels in Hong Kong, the Mainland and the Bahamas.
The infrastructure segment comprises the group's 78.2% interest in Cheung Kong Infrastructure
Holdings (CKI), a publicly listed infrastructure company in Hong Kong with diversified investments
in energy infrastructure, transportation infrastructure, water infrastructure, waste management and
infrastructure related business. The group's infrastructure segment operates in Hong Kong, Mainland
China, the UK, the Netherlands, Australia, New Zealand and Canada.
The energy segment comprises the group's 34% interest in Husky Energy, a Canadian international
integrated energy and energy-related company. Husk Energy operates in Western and Atlantic
Canada, the US and the Asia Pacific region with upstream, midstream and downstream business
segments.
Apart from the six operating business segments the group also derives revenue from the finance,
investments, and others segment that includes, returns earned on the group's holdings of cash as
liquid investments from Hutchison Whampoa (China), investment arm of the group in Mainland
China; Hutchison China MediTech, the holding company of a pharmaceutical and healthcare group
based primarily in Mainland China; TOM Group, a Chinese-language media conglomerate with
business interests in e-commerce, mobile internet, publishing, outdoor media, television and
entertainment and across markets in Mainland China, Taiwan and Hong Kong; Hutchison Water, a
company that focuses on water and cleantech technologies and solutions in the areas of desalination,
waste water treatment, water reuse, water supply and water efficiency; and Marionnaud, a perfumeries
and cosmetics retailer based in Europe.

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Hutchison Whampoa Limited


History

HISTORY
Hutchison Whampoa Limited (Hutchison or the group) was established in 1977, as a result of a
merger between Hutchison International and Hong Kong and Whampoa Dock. In the following year,
Hutchison became a limited company in Hong Kong.
In 1985, the group entered the energy business with the acquisition of a substantial interest in Hong
Kong Electric Holdings. In the same year, the group formed Hutchison Telecommunications, which
enabled it to offer fixed line services, internet services and mobile phone services.
In 1987, the group expanded into overseas markets by purchasing a 43% interest in Husky Energy,
an oil and gas company based in Canada. In 2000, Hutchison expanded its internet business by
setting up e-commerce operations in Hong Kong and the Asia region. In the same year, alliances
were also formed with several companies in the US in the e commerce industry such as Priceline.com.
The group acquired a stake in Priceline.com in 2001.
Subsequently, the group's wholly owned subsidiary, Hutchison Telecommunications International,
sold Hutchison Telecommunications Technology Investments to Pacific Century Cyberworks, a
holding company of HKT Group Holdings Limited. In the same year, Hutchison's associated company
in the US, VoiceStream Wireless, completed its merger with a German telecommunications company,
Deutsche Telekom. The group acquired Asia Global Crossing's interest in Hong Kong Joint Ventures,
in 2002. Later that year, the group acquired Kruidvat, a European retailer. Hutchison confirmed '3'
as the brand name for its third generation (3G) cellular services, in 2002.
The group rolled out its 3G mobile video and multimedia services in the UK in 2003. In the same
year, Hutchison's 3G cellular services were also launched in Austria, Sweden and Australia.
Subsequently, Hutchison entered into an agreement with NTT DoCoMo to co-operate in the
development and promotion of 3G mobile multimedia and communications services.
The group sold Hutchison Global Communications Investments, a fixed line telecommunications
operator, to Vanda Systems & Communications Holdings, in 2004. In the following year, the group's
subsidiary, Hutchison Port Holdings (HPH), Savi Technology and Lockheed Martin formed a new
company Savi Networks to build and operate active radio frequency identification (RFID) based
information network that tracks and manages containerized ocean cargo. In the same year, A S
Watson (ASW), the group's subsidiary, acquired 90.7% of Marionnaud Parfumeries to strengthen
its position in France. The group's subsidiary, Hutchison Telecommunications International, sold its
mobile operations in Paraguay to Mexico's America Movil, a wireless service provider, in 2005.
During the same year, 3 Italia, the group's subsidiary, acquired Channel 7 and became the first
mobile media company in Europe to own a national digital television (TV) license.
In India, Hutchison Essar, the group's joint venture with Essar Teleholdings, acquired BPL Mobile
Cellular, in 2006. In the same year, Hutchison's 3 Group and Microsoft collaborated to provide access
to Microsoft's communication services, MSN Messenger and MSN Hotmail, through the 3 portal and

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History

installed software clients on 3G handsets. Subsequently, the group's subsidiary, Husky Energy
acquired 23,680 acres of oil sands leases adjacent to its Saleski property to strengthen Husky's oil
sands position. During the same year, 3 Group signed a strategic alliance with Yahoo to offer Yahoo
services on 3 Group networks. Hutchison Telecommunications International's Indian subsidiary,
Hutchison Essar, acquired Essar Spacetel from the Essar Group.
Hutchison Telecommunications International launched HT Mobile, Vietnam's nation-wide mobile
communications service operator, in 2007. HT Mobile operated the code division multiple access
2000 (CDMA2000) 1 X Evolution-Data Optimized (1XEV-DO) network in Vietnam under the investment
license granted to the co-operation partnership between Hutchison Telecom and Hanoi Telecom
Joint Stock. In the same year, Hutchison Telecommunications International sold the company's
entire interests in Hutchison Essar, India to a subsidiary of Vodafone. Subsequently, Husky Energy
acquired a refinery in Lima, Ohio from Valero Energy. During the same year, Hutchison MediPharma
(HMPL) entered into a drug discovery and development agreement with Eli Lilly. Cheung Kong
Infrastructure (CKI) acquired all of the issued and outstanding trust units of TransAlta Power (TransAlta
Power), an energy entity with stakes in six power generation plants in Canada. HPH signed an
agreement with Karachi Port Trust to build and manage a new container terminal in Keamari Groyne,
Pakistan, for a concession period of 25 years, extendible for another 25 years. Subsequently, 3 UK
signed an agreement with T-Mobile (UK) to combine their 3G access networks. In 2007, Husky
entered into an agreement with BP to create an integrated North American oil sands business
consisting of upstream and downstream assets.
In 2008, Orascom Telecom Holdings (now Global Telecom Holding) sold its entire stake in Hutchison
Telecommunications International to Hutchison and Yuda for HK$7.5 billion ($956 million). In the
same year, Husky Energy collaborated with China National Offshore Oil (CNOOC) to jointly develop
the Madura BD gas and natural gas liquids field located offshore East Java, Indonesia. Subsequently,
CKI acquired Wellington electricity distribution network from Vector, a listed company on the New
Zealand Stock Exchange. During the same year, CKI acquired the Taharoa Iron Sands Business in
New Zealand for a consideration of about HK$1,393 million ($178.9 million). Husky Energy acquired
two parcels (blocks 1 and 3) at the Canada-Newfoundland and Labrador Offshore Petroleum Board
(C-NLOPB). Shenzhen Yantian Port Group (YPG) and HPH entered into an agreement for the joint
construction and development of the Shenzhen Yantian East Port Phase I Container Terminal Project
(East Port Phase I) at Yantian Port. The Ports of Stockholm and HPH jointly signed a concession
agreement that granted HPH the right to operate the container terminal within Stockholm Free Port.
Subsequently, HPH and Evergreen signed an agreement for a share swap of Evergreen's interest
in Taranto Container Terminal for a minority stake interest in London Thamesport (LTP) and ECT
Delta.
In 2009, CKI and HEH entered into an agreement for HEH to purchase from CKI, the entire issued
share capital of Outram, a company formed by CKI to hold 45% equity interests in three joint ventures
owning power plants in mainland China. In the same year, Vodafone and Hutchison
Telecommunications (Australia), a listed subsidiary of Hutchison, announced an agreement to merge
their telecommunications businesses in Australia. Subsequently, Hutchison Telecom launched global
standard for mobile communications (GSM) services in Vietnam. During the same year, Hutchison
Telecom sold its stake in Partner Communications (Partner), an Israeli mobile communications
operator, to Scailex. Later in 2009, ASW opened its 500th Watsons store in Mainland China. Husky

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History

Energy entered into an agreement with Suncor Energy to purchase 98 retail outlets in the Ontario
market.
In 2010, CKI signed an agreement with BG Energy to acquire a 50% stake in Seabank Power, an
electricity-generating company located near Bristol, the UK. In the same year, Husky Energy received
approval from the Government of Indonesia for an extension to the existing Madura Strait Production
Sharing Contract (PSC), originally awarded in 1982. In the same year, CKI and HK Electric completed
the acquisition of EDF Energy's electricity distribution assets in the UK. Husky Oil China, Husky
Energy's wholly owned subsidiary, signed an agreement with CNOOC for funding and operation of
the Liwan 3-1 deep water gas field development, in 2010.
In 2011, CKI signed agreements with Power Assets Holdings to jointly acquire the Meridian
Cogeneration Plant in Saskatchewan, Canada from Husky Oil and TransAlta Cogeneration for
approximately HK$718 million ($92.5 million). In the same year, Hutchison Telecommunications
Hong Kong won the bid for the 900 megahertz (MHz) spectrum in the auction held by the Office of
the Telecommunications Authority for radio spectrum in the 850MHz, 900MHz and two gigahertz
(GHz) bands in Hong Kong. Subsequently, ASW rebranded its 212-store retail network in Ukraine
from DC to Watsons. During the same year, a consortium led by CKI agreed to acquire Northumbrian
Water in the UK for approximately $3.9 billion. The New South Wales Government appointed
Hutchison Port as the operator of the Enfield Intermodal Logistics Centre (ILC), located 18 kilometers
from Port Botany. Later in the same year, HPH signed an agreement with Ajman Port Authority to
develop and operate Ajman Port in the UAE.
In 2012, Hutchison Telecom Hong Kong (HTHK), the mobile arm of Hutchison Telecommunications
Hong Kong Holdings (HTHKH), entered into a strategic partnership with Vodafone in Hong Kong
under which, HTHK will be able to sell to its multinational customers a range of managed
communications services provided by Vodafone Global Enterprise, the business within Vodafone
that manages the communications needs of multinational companies. In the same year, Hutchison
3G Austria, a subsidiary of Hutchison, entered into an agreement to acquire 100% of Orange Austria
from Mid Europa Partners (MEP) and France Telecom. Subsequently, HTHKH won a bid for 30MHz
block in the auction of radio spectrum in the 2.3GHz band, held by the Office of the
Telecommunications Authority. During the same year, 3 Hong Kong, the mobile telecommunications
division of HTHKH, launched fourth generation (4G) long term evolution (LTE) service. Three Ireland
and Vodafone Ireland entered into a strategic partnership agreement creating a 50/50 joint venture
company to share their physical network and site infrastructure at over 2,000 locations across Ireland.
A consortium led by CKI entered into an arrangement to acquire Wales & West Utilities (WWU) in
the UK for a consideration of 645 million ($1,047 million). Subsequently, CKI and Power Assets
formed a new 50/50 joint venture called Transmission Operations Australia (TOA), to expand into
the renewable energy power transmission in Australia by investing A$33.6 million ($35.1 million) in
a power transmission link in Victoria.
In January 2013, Hutchison 3G Austria (H3G), a wholly-owned subsidiary of Hutchison, completed
the contractual formalities for the acquisition of the whole business of Orange Austria, an Austrian
mobile network operator from its previous owners Mid Europa Partners and France Telecom-Orange.
In the same month, HPH inaugurated Huizhou International Container Terminals (HICT), a 50,000

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History

tonne petrochemical terminal, and launched a 30,000 tonne oil terminal expansion project, at the
Quanwan Port Zone (QPZ).
Hutchison Port Holdings Trust (HPH Trust) acquired the entire issued and paid-up share capital of
Asia Container Terminals Holdings (ACT Holdings) from DP World ACT Holdings, DP World 8 and
PSA China for HK$3.9 billion ($504.9 million), in March 2013. In the same month, 3 Hong Kong, the
mobile telecommunications division of HTHKH, announced a paired spectrum band for 4G
deployments that gives a boost to mobile network speed. Subsequently, A consortium led by CKI
entered into an agreement to acquire AVR Afvalverwerking, an energy from waste player based in
the Netherlands, for an enterprise value of HK$9.7 billion ($1.3 billion), During the same month,
Three Ireland entered into an agreement with Telefonica to buy its O2 business in Ireland for E780
million ($1,035.8 million).
In July 2013, CKI transferred its 66% interest in the National Highway 107 (Zhumadian Sections) to
the Chinese JV partner in the project. Husky Energy with its partner Statoil announced the discovery
of oil reserves in Flemish Pass Offshore Newfoundland, in September 2013.
In March 2014, Hutchison formed a strategic alliance with Temasek under which Temasek would
hold an indirect equity interest of 25% in ASW, HWLs retail division, for HK$44 billion ($5.7 billion).
The transaction is expected to allow the group to partially unlock the value of ASW as well as set
an important valuation benchmark for its remaining interests. In the same month, Husky Energy and
CNOOC commenced their first production at the landmark Liwan Gas Project in the South China
Sea.
In May 2014, a joint venture led by CKI entered into an agreement for the acquisition of assets and
the related land holdings of the ParkN Fly business, an off-airport car park provider in Canada. In
the same month, ASW signed an agreement to sell its 50% interest in travel retail business,
Nuance-Watson, to The Nuance Group (TNG).

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Key Employees

KEY EMPLOYEES
Name

Job Title

Board

Li Ka-shing

Chairman

Executive Board

50000 HKD

Li Tzar Kuoi, Victor

Deputy Chairman

Executive Board

75530000 HKD

Fok Kin-Ning, Canning

Group Managing Director

Executive Board

188190000 HKD

Chow Woo Mo Fong, Susan

Deputy Group Managing Director

Executive Board

48880000 HKD

Frank John Sixt

Group Finance Director

Executive Board

46680000 HKD

Lai Kai Ming, Dominic

Executive Director

Executive Board

43960000 HKD

Kam Hing Lam

Executive Director

Executive Board

20740000 HKD

Sir Michael David Kadoorie

Director

Non Executive Board

Cheng Hoi Chuen, Vincent

Director

Non Executive Board

Lee Wai Mun, Rose

Director

Non Executive Board

120000 HKD

Lee Yeh Kwong, Charles

Director

Non Executive Board

110000 HKD

George Colin Magnus

Director

Non Executive Board

200000 HKD

William Shurniak

Director

Non Executive Board

250000 HKD

Wong Chung Hin

Director

Non Executive Board

310000 HKD

William Elkin Mocatta

Alternate Director

Non Executive Board

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Compensation

120000 HKD

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Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES


Li Ka-shing
Board: Executive Board
Job Title: Chairman
Since: 1981
Age: 86
Mr. Li has been the Chairman at Hutchison since 1981. He has been an Executive Director at the
group since 1979. He is the Founder and the Chairman at Cheung Kong Holding. He also serves
as the Chairman at Li Ka Shing Foundation, Li Ka Shing (Overseas) Foundation and Li Ka Shing
(Canada) Foundation. He previously served as a Member at the Hong Kong Special Administrative
Region's Basic Law Drafting Committee, Hong Kong Affairs Adviser and the Preparatory Committee
for the Hong Kong Special Administrative Region.

Li Tzar Kuoi, Victor


Board: Executive Board
Job Title: Deputy Chairman
Since: 1999
Age: 49
Mr. Li has been the Deputy Chairman at Hutchison since 1999. He serves as the Managing Director,
Deputy Chairman and the Chairman of executive committee at Cheung Kong. Mr. Li also serves as
the Chairman at Cheung Kong Infrastructure Holdings (CKI) and CK Life Sciences (Holdings). His
other positions include an Executive Director at Power Assets Holdings and the Co-Chairman at
Husky Energy; the Deputy Chairman at Li Ka Shing Foundation, Li Ka Shing (Overseas) Foundation
and Li Ka Shing (Canada) Foundation; and a Director at Hongkong and Shanghai Banking Corporation
(HSBC), Continental Realty, Honourable Holdings, Winbo Power, Polycourt and Well Karin. Mr. Li
is also a Member of the Council for sustainable development at Hong Kong Special Administrative
Region and the Vice Chairman at Hong Kong General Chamber Of Commerce.

Fok Kin-Ning, Canning


Board: Executive Board
Job Title: Group Managing Director
Since: 1993
Age: 62
Mr. Fok has been the Group Managing Director at Hutchison since 1993. He has been an Executive
Director at the group since 1984. He serves as the Chairman at Hutchison Harbour Ring, Hutchison

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Key Employee Biographies

Telecommunications Hong Kong Holdings, Hutchison Telecommunications (Australia), Power Assets,


and Hutchison Port Holdings Management (HPH). Mr. Fok also serves as the Trustee-Manager at
Hutchison Port Holdings and the Co-Chairman at Husky Energy. Currently, he also serves as the
Deputy Chairman at CKI and as a Non-Executive Director at Cheung Kong.

Chow Woo Mo Fong, Susan


Board: Executive Board
Job Title: Deputy Group Managing Director
Since: 1998
Age: 60
Ms. Chow has been the Deputy Group Managing Director at Hutchison since 1998. She has been
an Executive Director at the group since 1993. She also serves as an Executive Director at CKI,
HHR and Power Assets; as a Non-Executive Director at HTHKH; and as a Director at HTAL. MS
Chow is also an Alternate Director to Directors of each at CKI, Power Assets, HTAL and TOM Group.
She previously served as a Non-Executive Director at TOM and an Alternate Director to a Director
at HPH Management as Trustee-Manager at HPH Trust.

Frank John Sixt


Board: Executive Board
Job Title: Group Finance Director
Since: 1998
Age: 62
Mr. Sixt has been the Group Finance Director at Hutchison since 1998. He has been an Executive
Director at the group since 1991. He also serves as the Non-Executive Chairman at TOM Group.
Mr. Sixt is also an Executive Director at CKI and Power Assets, a Non-Executive Director at Cheung
Kong, HTHKH and HPH Management. He also serves as the Trustee-Manager at HPH Trust and
a Director at HTAL and Husky Energy; and an Alternate Director at HTAL.

Lai Kai Ming, Dominic


Board: Executive Board
Job Title: Executive Director
Since: 2000
Age: 61
Mr. Lai has been an Executive Director at Hutchison since 2000. He is a Non-Executive Director of
HTHKH and a Director of HTAL. Mr. Lai is also an Alternate Director to Directors of each at HTHKH
and HTAL. He has over 30 years of management experience in different industries. v holds a Bachelor
of Science (Hons) degree and a Masters degree in Business Administration.

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Key Employee Biographies

Kam Hing Lam


Board: Executive Board
Job Title: Executive Director
Since: 1993
Age: 67
Mr. Kam has been an Executive Director at Hutchison since 1993. He also serves as the Deputy
Managing Director and a Member of Executive Committee at Cheung Kong. Mr. Kam also serves
as the Group Managing Director at CKI, the President and Chief Executive Officer at CKLS and an
Executive Director at Power Assets. He also serves as the Chairman at Hui Xian Asset Management
and the Manager at Hui Xian Real Estate Investment Trust.

Sir Michael David Kadoorie


Board: Non Executive Board
Job Title: Director
Since: 1995
Age: 73
Sir Kadoorie has been a Director at Hutchison since 1995. He also serves as the Chairman at CLP
Holdings, Hongkong and Shanghai Hotels and Heliservices (Hong Kong). Sir Kadoorie is also an
Alternate Director at Hong Kong aircraft engineering company

Cheng Hoi Chuen, Vincent


Board: Non Executive Board
Job Title: Director
Since: 2014
Age: 66
Mr. Cheng has been a Director at Hutchison since July 2014. He is the Chairman of the University
Council of The Chinese University of Hong Kong. Mr. Cheng is an Independent Non-Executive
Director at MTR Corporation, Great Eagle Holdings, CLP Holdings, Hui Xian Asset Management
and serves as the Manager at Hui Xian Real Estate Investment, China Minsheng Banking, Shanghai
Industrial Holdings and Wing Tai Properties. He joined The Hongkong and Shanghai Banking
Corporation in 1978 of which he became the Chief Financial Officer in 1994, the General Manager
and Executive Director in 1995, and served as the Chairman from 2005 to 2010. Mr. Cheng was
also the Chairman at HSBC Bank (China) from 2007 to 2011, an Executive Director at HSBC Holdings
from 2008 to 2011 and an Adviser to the Group Chief Executive at HSBC Holdings from 2011 to
2012.

Lee Wai Mun, Rose

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Key Employee Biographies

Board: Non Executive Board


Job Title: Director
Since: 2012
Age: 61
Ms. Lee has been a Director at Hutchison since 2012. She also serves as the Executive Director,
Vice-Chairman and Chief Executive Officer at Hang Seng Bank. Ms. Lee also serves as the Chairman
at Hang Seng Bank (China). She is the Group General Manager at HSBC Holdings; a Director at
Hongkong and Shanghai Banking; an Independent Non-Executive Director at Swire Pacific; the
Chairman of the Board of Governors at Hang Seng Management College; and the Chairman of the
Board of Directors at Hang Seng School of Commerce. She also serves as the Co-Chairman of the
campaign committee at Community Chest of Hong Kong, the Vice-Chairman of the Finance
Professional Committee at Guangdong's association for promotion of cooperation between
Guangdong, Hongkong and Macao. Ms. Lee also serves as the Vice President at The Hong Kong
Institute of Bankers, a Member of the advisory committee at Centre for transportation and a Member
at the court of The Hong Kong University of Science and Technology.

Lee Yeh Kwong, Charles


Board: Non Executive Board
Job Title: Director
Since: 2013
Age: 78
Mr. Lee has been a Director at Hutchison since 2013. He previously served as an Executive Director
at Hutchison from 1979 to 1997. Mr. Lee currently serves as a Non-Executive Director at Cheung
Kong; and a Board Member at Community Chest. He previously served as a Member at Council
from 1988 to 1991, and as the Chairman at the Stock Exchange of Hong Kong from 1992 to 1994.
Later Mr. Lee served as the Chairman at Hong Kong Exchanges and Clearing from 1999 to 2006.
He also served on a number of Government appointments, including as a Member of the Executive
Council at The Hong Kong Special Administrative Region Government from 1997 to 2002 and from
2005 to 2012. Mr. Lee is also one of the Founders of Woo, Kwan, Lee & Lo, a law firm in Hong Kong.

George Colin Magnus


Board: Non Executive Board
Job Title: Director
Since: 1980
Age: 78
Mr. Magnus has been a Director at Hutchison since 1980. He previously served as the Deputy
Chairman at Hutchison from 1984 to 1993. Currently, Mr. Magnus serves as a Non-Executive Director
at Cheung Kong and CKI. He also serves as an Independent Non-Executive Director at Power Assets
and a Director at Husky Energy.

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Key Employee Biographies

William Shurniak
Board: Non Executive Board
Job Title: Director
Since: 1984
Age: 83
Mr. Shurniak has been a Director at Hutchison since 1984. He currently serves as a Member of the
Audit Committee at Hutchison. Mr. Shurniak also serves as a Director (Independent) and the Deputy
Chairman at Husky Energy.

Wong Chung Hin


Board: Non Executive Board
Job Title: Director
Since: 1984
Age: 81
Mr. Hin has been a Director at Hutchison since 1984. He also serves as an Independent
Non-Executive Director at Bank of East Asia and Power Assets.

William Elkin Mocatta


Board: Non Executive Board
Job Title: Alternate Director
Since: 1987
Age: 61
Mr. Mocatta has been an Alternative Director at Hutchison since 1997. He currently serves as the
Chairman at CLP Power Hong Kong and CLP Properties. He is also the Vice Chairman at CLP
Holdings Limited and serves as a Director at Hong Kong and Shanghai Hotels.

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Major Products and Services

MAJOR PRODUCTS AND SERVICES


Hutchison Whampoa Limited (Hutchison or the group) is a multinational conglomerate engaged in
diversified businesses, including, ports and related services, property and hotels, retail, infrastructure,
energy and telecommunications. The group's key products and services include the following:
Port and related services:
Container services
Mid-stream operations
River trade
Cruise terminal operations
Ports related logistics services
Property and Hotels:
Property Development
Property Investment
Commercial rental property
Industrial rental property
Residential rental property
Retail:
Health and beauty products
Luxury perfumeries
Cosmetics
Supermarkets
Consumer electronics
Electrical appliances
Airport retailing
Manufactures and distribution of bottled water and beverage products
Infrastructure:
Energy
Transportation
Water
Telecommunications:
Telecommunications:
3G multi-media mobile
Second-generation (2G) mobile

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Major Products and Services

Fixed-line
Internet
Broadband services
International connectivity services
Energy:
Oil refineries
Wholesale, commercial and retail marketing of refined petroleum products
Upstream activities

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Revenue Analysis

REVENUE ANALYSIS
Overview
Hutchison recorded revenues of HK$256,234 million ($33,028.6 million) during the financial year
ended December 2013 (FY2013), an increase of 5.4% over FY2012. In FY2013, Hong Kong, the
group's largest geographic market, accounted for 22.4% of the total revenues.
Hutchison generates revenues through six business segments: retail (46.7 % of the total revenues
in FY2013), telecommunication (31.6%), port and related services (10.4%), property and hotel (2.7%),
infrastructure (2%), and finance and investment and others (6.7%)*.
The group did not report any revenues from the energy segment.
*The percentages have been rounded off to the closest value.
Revenues by segment In FY2013, the retail segment recorded revenues of HK$119,637 million
($15,421.2 million), an increase of 7.4% over FY2012.
The telecommunication segment recorded revenues of HK$81,040 million ($10,446.1 million) in
FY2013, an increase of 3.0% over FY2012.
The port and related services segment recorded revenues of HK$26,562 million ($3,423.8 million)
in FY2013, an increase of 3.6% over FY2012.
The property and hotel segment recorded revenues of HK$6,807 million ($877.4 million) in FY2013,
an increase of 7.3% over FY2012.
The infrastructure segment recorded revenues of HK$5,087 million ($655.7 million) in FY2013, an
increase of 19.6% over FY2012.
The finance and investment and others segment recorded revenues of HK$17,101 million ($2,204.3
million) in FY2013, an increase of 2.2% over FY2012.
Revenues by geography**
Hong Kong, Hutchison's largest geographical market, accounted for 22.4% of the total revenues in
FY2013. Revenues from Hong Kong reached HK$53,536 million ($6,900.8 million) in FY2013, a
decrease of 0.3% compared to FY2012.
Mainland China accounted for 11.4% of the total revenues in FY2013. Revenues from Mainland
China reached HK$27,152 million ($3,499.9 million) in FY2013, an increase of 12.6% over FY2012.

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Revenue Analysis

Revenues from Canada*** reached HK$96 million ($12.4 million) in FY2013, a decrease of 13.5%
compared to FY2012.
Europe accounted for 50.6% of the total revenues in FY2013. Revenues from Europe reached
HK$120,969 million ($15,592.9 million) in FY2013, an increase of 5.2% over FY2012.
Asia, Australia and others accounted for 15.6% of the total revenues in FY2013. Revenues from
Asia, Australia and others reached HK$37,380 million ($4,818.3 million) in FY2013, an increase of
11.7% over FY2012.
**The group included revenues from finance and investments and others while reporting its revenue
by geography, which does not form part of consolidated revenues. Hence, revenues by geography
do not match the total revenues.
***Canada accounted for less than 0.1% of the total revenues in FY2013.

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SWOT Analysis

SWOT ANALYSIS
Hutchison Whampoa Limited (Hutchison or the group) is a multinational conglomerate engaged in
diversified businesses, including, ports and related services, property and hotels, retail, infrastructure,
energy and telecommunications. Hutchison's exposure to diverse verticals enhances the addressable
market, reduces vulnerability to sector specific risks and enables the group to leverage the
opportunities offered in verticals offering strong growth. However, intense competition in the group's
key divisions and geographies may impact its financial condition and results of operations.
Strengths

Weaknesses

Diversified vertical operations


Strategically spread telecommunications
business
Strong margins and cash flow

Reliance on European operations for


majority of its revenues

Opportunities

Threats

Strong demand for smartphone and tablets


Growth through strategic acquisitions
Growing marine ports and services market
could help in topline growth

Intense competition pressurizes margins


High regulations may adversely affect the
group's financial condition
Volatility in crude oil and natural gas prices

Strengths

Diversified vertical exposure spreads business risk


The group has a diversified vertical exposure. Hutchison has significant presence across all the six
key verticals which include retail; telecommunications; port and related services; property and hotels;
infrastructure; and energy. The group operates its retail division through its subsidiary, A S Watson
(ASW). ASW is one of the largest health care and beauty retailers in the world with over 11,000
stores in 22 markets worldwide. The retail portfolio comprises of the health and beauty products;
luxury perfumery and cosmetic products; food and fine wines; as well as consumer electronics and
electrical appliances. ASW also manufactures and distributes water products and beverages in Hong
Kong and Mainland China under the brand names of Watsons Water and Mr. Juicy. In addition, in
Europe, the group operates a number of health and beauty retail chains, including Drogas, Kruidvat,
Superdrug, Rossmann, Savers, Trekpleister, Drogas, Spektr and Watsons.
Hutchison's telecommunications division is a global operator of mobile telecommunications and data
services. It also operates through the fiber optic fixed line networks in Hong Kong serving as a
telecommunications gateway to China and rest of the world. It provides mobile services in Hong

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SWOT Analysis

Kong, Macau, Indonesia, Vietnam, Sri Lanka, and six countries across Europe, including Italy, the
UK, Sweden, Denmark, Austria and Ireland. Hutchison's port and related services is one of the
world's largest privately owned container terminal operators, holding interests in 52 ports comprising
319 operational berths. In FY2013, the ports handled a total throughput of 78.3 million twenty foot
equivalent units (TEUs). This business also engages in mid-stream operations, river trade, cruise
terminal operations and ports related logistics services.
The group's property and hotels division develops and invests in real estate projects, ranging from
office buildings to luxury residential properties. Hutchison holds a rental property portfolio of
approximately 14 million square feet of office, commercial, industrial and residential premises,
primarily in Hong Kong, as well as interests in a number of joint-venture developments in Mainland
China and selective overseas markets. It also has ownership interests in 11 premium hotels in Hong
Kong, the Mainland and the Bahamas. The groups infrastructure division comprises its 78.2%
interest in Cheung Kong Infrastructure Holdings (CKI), a publicly listed infrastructure company in
Hong Kong with diversified investments in energy infrastructure, transportation infrastructure, water
infrastructure, waste management and infrastructure related business. Further, the group's energy
division included 34% interest in Husky Energy, an integrated energy and energy-related company
with investments in Canada, the US, China, Taiwan, Greenland and Indonesia.
Hutchison's exposure to diverse verticals enhances the addressable market, reduces vulnerability
to sector specific risks and enables the group to leverage the opportunities offered in verticals offering
strong growth.
Strategically spread telecommunications business
The group's telecommunications business is strategically spread with presence across mature and
emerging markets. The groups telecommunications division is a global operator of mobile
telecommunications and data services. The segment also operates a fiber optic fixed line networks
in Hong Kong serving as a telecommunications gateway to China and rest of the world. The group
offers a range of telecommunication services, including, 4G long term evolution (LTE) and 3G
multi-media mobile, second-generation mobile and fixed-line services. It also offers internet and
broadband services, including, international connectivity services over both fiber-optic and mobile
networks.
The group's telecommunications division operates through three subsidiaries, including Hutchison
Telecommunications Hong Kong Holdings (HTHKH); Hutchison Asia Telecommunications (HAT)
and 3 Group Europe. HTHKH holds the group's interests in mobile operations in Hong Kong and
Macau, as well as fixed-line operations in Hong Kong. It has a combined mobile customer base of
over 3.8 million in Hong Kong and Macau. HAT has a mobile customer base of over 43.5 million
with operations in Indonesia, Vietnam and Sri Lanka. The 3 Group Europe offers high-speed mobile
telecommunications and broadband services to 26.6 million in six countries in Europe, including the
UK, Italy, Sweden, Denmark, Austria, and Ireland. In addition, majority of the 3 Group Europe
operations continued to hold leading positions in their respective countrys smartphone and mobile
broadband access segments in FY2013. The 3 Group Europe's customer base grew at a CAGR of
13.1% for the 2009-13 periods.

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SWOT Analysis

The group's strategically spread telecommunications business, which accounted for 31.6% of the
group's total revenues in FY2013, enables it to attract new customers and supports its top line
performance.
Strong margins and cash flow
The group witnessed significant increase in its margins and cash flow in the last year. In FY2013,
Hutchinsons operating profits and net profits increased by 19% and 20% over FY2012, respectively.
Consequently, the groups operating margins increased from 18% in FY2012 to 20.3% in FY2013.
Similarly, the groups net margins increased from 10.7% in FY2012 to 12.1% in FY2013. Growing
margins reflect the group's ability to deploy its resources in profitable avenues and indicate relatively
better operating efficiency. In addition, the groups cash flow from operating activities was HK$45,052
($5,807.2 million) in FY2013, an increase of 35.5% over FY2012. Also in FY2013, Hutchinson was
able to convert 144.5% of its net income into cash from operations. The strong cash conversion that
the group enjoys indicates the inherent strength in the group's business model. The group's strong
cash flow generation capability supports its growth prospects.
Strong cash flows and margins provide resilience to the business operations and reduce vulnerability
to market declines. Cash flows enable the group to further finance growth at feasible costs.

Weaknesses

Reliance on European operations for majority of its revenues


The groups primarily depends on its European operations for a large portion of its revenues. In
FY2013, Hutchinsons revenues from Europe accounted for approximately 50.6% of total revenues.
In the recent years, the European economy has undergone significant turmoil amid stock market
volatility, difficulties in the financial services sector, tightening of the credit markets, softness in the
housing markets, concerns of inflation and deflation, reduced corporate profits and capital spending,
reduced consumer spending and various other economic difficulties. According to International
Monetary Fund (IMF), the Euro area still faces downside risks from low inflation and the possibility
of protracted low growth. The Euro area is expected to sluggishly at a rate of 0.8% and 1.3% in 2014
and 2015, respectively compared to the global average growth of 3.3% and 3.8%, respectively during
the same periods. Concentrated operations in terms of geographical markets increase the companys
business risks, making it vulnerable to economic uncertainties in particular markets.

Opportunities

Strong demand for smartphone and tablets


The smartphones and tablets market is expected to grow at a robust pace in the medium term.
According to industry estimates, the global shipments for smartphones are expected to reach 1,250

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SWOT Analysis

million units in 2014 as compared to 1,004 million units in 2013. Furthermore, smartphone shipments
are expected to grow at a CAGR of 13% between 2013 and 2018. Moreover, emerging markets are
expected to lead smartphone shipments with a CAGR of 16% for the 2013-18 periods as compared
to a CAGR of 3.6% for the mature markets during the same period. Also, the demand for tablets is
increasing robustly. The shipment of tablet PCs is estimated to grow from 233 million units in 2014
to more than 304 million units by 2018, growing at a CAGR of 6.9% for the 2014-18 periods.
The rapid growth in the usage of smartphones and tablets has led to strong growth in mobile data
traffic. Industry reports suggest that, in FY2013, smartphones generated 48 times more mobile data
traffic compared to a typical basic-feature cell phone. The market for mobile data continued to grow,
due to the proliferation of data offers linked to the sale of smartphones and 3G modems. Moreover,
new forms of communications, especially social networks such as Facebook or Twitter, have
significantly contributed for the increase in mobile data usage. Hutchison's telecommunications
division is a global operator of mobile telecommunications and data services. Its subsidiaries provide
mobile services in Hong Kong, Macau, Indonesia, Vietnam and Sri Lanka. The group also offers
high-speed mobile telecommunications and broadband services in Italy, the UK, Sweden, Denmark,
Austria and Ireland, through 3 Group Europe. The robust outlook for the smartphones and tablets
market is expected to boost the demand for the data. Hutchison is well poised to exploit the demand
for these data intensive mobile devices which will enable the group to enhance revenues.
Growth through strategic acquisitions
The group is significantly expanding its presence through strategic acquisitions. For instance, in
June 2014, CKI led joint venture agreed to acquire the assets and related land holdings of ParkN
Fly business, the leading off-airport car park provider in Canada. ParkN Fly is the largest off-airport
car park company in Canada, and the only national operator. CKI has an extensive transportation
portfolio of toll roads and bridges in China, spanning approximately 280 kilometers. This acquisition
is expected to enhance its business and also diversify its business risks.
Earlier in in March 2013, Hutchison Port Holdings Trust (HPH Trust) acquired the entire issued and
paid-up share capital of Asia Container Terminals Holdings (ACT Holdings) from DP World ACT
Holdings, DP World 8 and PSA China for HK$3.9 billion ($504.9 million). This strategic acquisition
is expected to increase the handling capacity of the HPH Trust's terminals in Hong Kong and enhance
the overall operational flexibility and efficiency of its existing Kwai Tsing Port facilities. This is also
expected to strengthen the competitiveness of Hong Kong Port as an international container shipping
hub to compete with ports in the region for international transshipment business.
Similarly in January 2013, Hutchison 3G Austria (H3G) acquired Orange Austria, an Austrian mobile
network operator from its previous owners Mid Europa Partners and France Telecom-Orange. With
this acquisition, Hutchison 3G Austria became the third largest mobile operator in Austria. Following
this transaction, 3G Austria's customers would experience better coverage; quality and service from
the improved spectrum position; and retail footprint. These strategic acquisitions are part of the
Hutchison's growth strategy to further expand its presence and enhance its revenue generating
capabilities.

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SWOT Analysis

Growing marine ports and services market could help in topline growth
After a steep decline in 2009, the global marine ports and services market recovered at a double
digit in the recent years. The market is expected to post strong and stable growth towards the end
of the forecast period. According to MarketLine (a unit of Informa plc) forecasts, the global marine
ports and services market is estimated to reach approximately $76.7 billion in 2016. The groups
Hutchison Port Holdings (HPH) subsidiary is a port investor, developer and operator. The HPH
network of port operations comprises 319 berths in 52 ports, spanning 26 countries throughout Asia,
the Middle East, Africa, Europe, the Americas and Australasia. The group also has significant
container terminal operations. It is also engaged in mid-stream operations, river trade, cruise terminal
operations and ports related logistics services.
The groups significant presence in the ports and services business and growing end market would
provide growth opportunities in the coming years.

Threats

Intense competition pressurizes margins


Hutchison's principal business operations face significant competition across diverse markets in
which they operate. New market entrants, intense price competition by existing competitors, product
innovation or technical advancement may adversely affect the group's financial condition and results
of operations. The group faces several competitive risks across its divisions.
The vertical integration of international shipping lines, some of which are major clients of the group's
port operations are increasingly investing in seaports and in their own dedicated terminal facilities.
This may result in under usage of the group's terminal facilities. In the telecoms space, the aggressive
tariff plans and customer acquisition strategies by competitors may impact the group's pricing plans,
customer acquisition and retention costs, rate of customer growth and retention prospects and hence
the revenue it receives as a major provider of telecommunications services. Further the group also
faces risk of competition from disruptive alternate telecommunications or energy technologies and
potential competition in the future from substitute telecommunications or energy technologies being
developed or to be developed.
Hutchison also faces increasing competition in property investment and development in mainland
China, which may result in lower returns achieved on the group's property businesses. In the retail
space, the group expects continuous significant competition and pricing pressure from retail
competitors, which may adversely affect the financial performance of the group's retail operations.
The intense competition in the group's key divisions and geographies may impact its financial
condition and results of operations.
High regulations may adversely affect the group's financial condition

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SWOT Analysis

As a global business, the group is exposed to business risks in several different countries, which
may have an adverse effect on its financial condition. The group operates in many countries around
the world, and one of its strategies is to expand outside its traditional market in Hong Kong. The
group is exposed to different and changing political, social, legal and regulatory requirements at the
national or international level, such as those required by the European Union (EU) or the World
Trade Organization.
The group is exposed to various regulatory risks, including changes in tariffs and trade barriers;
changes in taxation regulations and interpretations. Competition (anti-trust) laws are applicable to
all of the group's activities, including the regulation of monopolies and conduct of dominant firms,
the prohibition of anti-competitive agreements and practices, and law requiring the approval of certain
mergers, acquisitions and joint ventures which could restrict the group's ability to own or operate
subsidiaries or acquire new businesses in certain jurisdictions. The group should also comply with
telecommunications and broadcasting regulations; and environmental laws and regulations. Husky
Energy's business is also subject to environmental laws and regulations similar to other companies
in the oil and gas industry. Failure to comply with such regulations may result in imposition of fines
and penalties and liability for cleanup costs and damages.
Moreover, new policies or measures by government, whether fiscal, regulatory or other competitive
changes, may pose a risk to the overall investment return of the group's infrastructure and energy
businesses and may delay the commercial operation of a business with a resulting loss of revenue
and profit. High regulations may adversely impact the group's financial condition and results of
operations in the long run.
Volatility in crude oil and natural gas prices
The group's subsidiary Husky Energy's results of operations and financial condition are dependent
on the prices received for its crude oil and natural gas production. Lower prices for crude oil and
natural gas may adversely affect the value and quantity of Husky's oil and gas reserves. Prices for
crude oil are based on world supply and demand. Supply and demand can be affected by a number
of factors including decisions taken by the Organization of Petroleum Exporting Countries (OPEC),
non-OPEC crude oil supply, social conditions in oil producing countries, the occurrence of natural
disasters, general and specific economic conditions, prevailing weather patterns and the availability
of alternate sources of energy. Volatility in crude oil and natural gas prices will adversely affect the
group's financial condition and results of operations.

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Top Competitors

TOP COMPETITORS

The following companies are the major competitors of Hutchison Whampoa Limited

AT&T Inc.
PSA International Pte Ltd
Telecom Italia S.p.A.
China Mobile Limited
Jardine Matheson Holdings Limited

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Company View

COMPANY VIEW
A statement by Li Ka-shing, the Chairman at Hutchison Whampoa is given below. The statement
has been taken from the group's 2013 annual report.
In 2013, the Group achieved solid earnings growth. Despite operating in some challenging markets
around the world, overall our businesses in 52 countries continue to deliver solid performance.
Results
The Groups recurring profit attributable to ordinary shareholders for the year, before property
revaluation gains and profits on disposal of investments and others, was HK$31,028 million, a 17%
increase from HK$26,587 million in 2012. Recurring earnings per share increased by 17% to HK$7.28
from HK$6.23 in 2012.
The Group also reported profit on investment property revaluation after tax in 2013 of HK$32 million
as compared to HK$1,113 million in 2012. Profits on disposal of investments and others after tax in
2013 of HK$52 million includes the gain arising from the Initial Public Offering of Westports in Malaysia
of HK$1,056 million, the one-time net gain on the completion of the Orange Austria acquisition
transaction of HK$958 million, partly offset by Hutchison Telecommunications (Australia) (HTAL)s
50% share of Vodafone Hutchison Australia (VHA) operating losses of HK$1,458 million and the
Groups share of Husky Energy (Husky)s impairment charge on certain natural gas assets in Western
Canada. This compares to a charge of HK$1,803 million in 2012, comprising HTALs 50% share of
VHAs operating losses and restructuring charges in the second half of that year.
Profit attributable to ordinary shareholders reported for the year was HK$31,112 million, a 20%
increase compared to HK$25,897 million for 2012.
Dividends
The Board recommends the payment of a final dividend of HK$1.70 per share (2012: HK$1.53 per
share) payable on 3 June 2014 to those persons registered as shareholders of the Company on 22
May 2014, being the record date for determining the shareholders entitlement to the proposed final
dividend. Combined with the interim dividend of HK$0.60 per share (2012: HK$0.55 per share), the
full year dividend amounts to HK$2.30 per share (2012: HK$2.08 per share).
Ports and Related Services
The ports and related services divisions throughput grew 2% to 78.3 million twenty-foot equivalent
units (TEU) in 2013. Total revenue of HK$34,119 million was 4% higher than last year reflecting
throughput growth and higher average revenue per TEU. This increase was partly offset by higher
operating costs and the division reported EBITDA of HK$11,447 million, which was 1% higher than
last year. EBIT of HK$7,358 million was 4% lower than 2012 mainly due to higher depreciation

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Company View

charges of HK$427 million including accelerated depreciation of certain assets at London Thamesport
as well as charges for new ports and expanded port facilities brought into operation during the year
that, in the ordinary course, can be expected to grow volumes and contribution over the next two to
three years.
In March 2013, HPH Trust acquired 100% interest in Asia Container Terminals (ACT HK), located
at Terminal 8 in Hong Kongs Kwai Tsing Port. In October 2013, Westports Holdings Bhd. in Malaysia
listed its shares on the Malaysia Stock Exchange. During the year, the division brought seven
additional berths into service, of which two berths through acquisition of ACT HK by HPH Trust, two
berths at Sydney Australia and one berth each at Westports in Malaysia, Lazaro Cardenas in Mexico
and Huizhou in the Mainland, while five existing berths were returned to the Port Authorities at
Barcelona in Spain and Busan in Korea.
The division targets increasing the number of operating berths from 278 at the end of 2013 to 284
by the end of 2014 with a net addition of six berths at Westports Malaysia, Brisbane Australia,
Dammam Saudi Arabia and Sohar Oman this year. Continuing economic recovery in the United
States and Europe combined with the Mainlands commitment to stability are providing a constructive
outlook for the sector in 2014. Consequently, the division is expected to grow volumes during the
year and will continue to focus on productivity gains, cost efficiency and selective acquisition and
development opportunities to achieve earnings growth.
Property and Hotels
The property and hotels division reported total revenue of HK$24,264 million, a 22% increase
compared to 2012. EBITDA and EBIT increased 29% and 30% to HK$13,995 million and HK$13,659
million respectively.
The divisions 11.8 million square foot portfolio of rental properties in Hong Kong, together with our
attributable share of 2.2 million square foot portfolio in the Mainland and overseas, reported higher
occupancy and steady rental growth. Reported rental income improved 12% to HK$4,259 million
from last year primarily due to higher rental renewal rates and occupancy. Our portfolio is of a high
quality, is well located and is expected to continue performing well in 2014.
The divisions hotel portfolio comprises 11 hotels with over 8,500 rooms, in which the Group has an
average effective interest of approximately 63%, generated EBIT of HK$1,036 million which was flat
compared to 2012.
Our current property development activities are principally focused on the Mainland and Singapore.
During the year, we completed the construction of an attributable share of gross floor area of
approximately 9.0 million square feet of residential and commercial properties, and recognised sales
on an attributable interest of approximately 7.8 million square feet of developed properties, primarily
in the Mainland. The divisions current attributable interest in landbank is approximately 83 million
developable square feet, largely held through joint ventures with Cheung Kong (Holdings) Ltd. Market
conditions permitting, we expect to complete an attributable share of approximately 8.3 million square
feet gross floor area of residential and commercial properties during 2014.

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Company View

Retail
The retail division (excluding Marionnaud), with over 10,500 stores in 25 markets, delivered another
year of strong revenue, cash generation and earnings growth in 2013. Total revenue of HK$149,147
million, EBITDA of HK$14,158 million and EBIT of HK$11,771 million, were 8%, 11% and 14% higher
respectively than last year. Excluding the impact attributable to the expiration of Nuance-Watsons
two core concession licences at Hong Kong International Airport in late 2012, total revenue, EBITDA
and EBIT grew by 9%, 13% and 16% respectively. The division reported like-for-like sales growth
of 2.2%, with 1.4% in Asia and 2.9% in Europe in 2013.
Despite the difficult retail environment in several European economies, the divisions European
operations overall were able to increase earnings contribution with EBITDA and EBIT growth of 15%
and 22% respectively, primarily due to the strong performance of the Health and Beauty Western
Europe subdivision.
Health and beauty operations in the Mainland grew total revenue by 17% as new store openings
continued to perform well, more than offsetting slowing comparable store sales growth. This business
unit has the highest profit growth within the retail division as a whole, with EBITDA and EBIT growth
at 18% and 16% respectively in 2013.
Recovering consumption economies in Europe and an overall stable outlook for the Mainland and
most countries in which we operate in Asia provide a positive outlook for the retail divisions
businesses, which should continue to expand rapidly in 2014.
Cheung Kong Infrastructure
Cheung Kong Infrastructure Holdings Limited (CKI), our Hong Kong listed subsidiary, announced
profit attributable to shareholders of HK$11,639 million, a growth of 23% over last year.
CKI continued to invest in earnings accretive businesses during the year, acquiring Enviro Waste
Services Limited, an integrated waste management business in New Zealand and, through a
consortium led by CKI, AVR-Afvalverwerking B.V., the largest energy-from-waste business in the
Netherlands.
In January 2014, CKIs 38.87%-owned associate, Power Assets Holdings Limited completed the
separate listing of its Hong Kong electricity business on the Main Board of the Stock Exchange of
Hong Kong Limited and currently holds 49.9% of the separate listed entity.
Husky Energy
Husky Energy, our associated company listed in Canada, announced profit from operations attributable
to shareholders of C$1,829 million, including an after tax impairment charge of C$204 million on
certain natural gas assets in Western Canada.

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Company View

Excluding this impairment charge, profit from operations attributable to shareholders increased 1%
over last year. Average production in 2013 was 312,000 barrels of oil equivalent per day (BOEs per
day) compared to 301,500 BOEs per day in 2012.
Husky Energy has achieved several milestones in key development projects in 2013 and is
progressing well on two very substantial capital projects, the Liwan deep-water natural gas
development (Liwan Project) located in the South China Sea and the Sunrise Energy oil sands
development (Sunrise Project) in Canada. The Liwan Project is expected to begin production in early
2014 and the first phase of the Sunrise Project is advancing towards first production in late 2014.
3 Group Europe
The Groups registered 3G customer base in Europe increased 13% during the year and totals over
26.6 million customers, of which over 83% are active. 3 Group Europe reported total revenue of
HK$61,976 million, a 6% increase over last year. EBITDA and EBIT grew by 38% and 54% to
HK$12,671 million and HK$4,856 million respectively. 3 Group Europe has achieved another important
milestone and reported positive EBITDA less capex for the year. This encouraging performance
reflects the Groups strong market position in the smartphone and mobile data segments, the
increased contribution from 3 Austria upon the completion of the acquisition of Orange Austria in
January 2013, and a well-disciplined operating and capital expenditure profile. In June 2013, 3
Ireland entered into an agreement with Telefonica to acquire O2, Telefonicas mobile business in
Ireland, for 780 million with an additional deferred payment of 70 million payable dependent upon
achievement of agreed financial targets. The completion of this transaction, which is subject to
regulatory approval, is expected in the second quarter of 2014. 3 Group Europe also completed
spectrum acquisitions required to support 4G (LTE) rollouts, which will continue in all of its major
markets in 2014.
The transition to a non-subsidised handset model in 3 Group Europes customer base was completed
in 2013. European mobile termination regimes have also largely stabilised. Accordingly, with highly
competitive network assets and service offerings as well as an industry leading cost structure, this
division is expected to continue to increase its contribution to the Group in 2014.
Hutchison Telecommunications Hong Kong
Hutchison Telecommunications Hong Kong Holdings (HTHKH), our Hong Kong listed
telecommunications subsidiary operating in Hong Kong and in Macau announced revenue of
HK$12,777 million, a decrease of 18% over last year. EBITDA of HK$2,758 million and EBIT of
HK$1,367 million, decreased 10% and 22% respectively over last year. The announced profit
attributable to shareholders was HK$916 million and earnings per share was 19.01 HK cents, a
decrease of 25% compared to last year. As of 31 December 2013, active mobile customers were
maintained at approximately 3.8 million in Hong Kong and Macau.
Hutchison Asia Telecommunications

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Company View

As of 31 December 2013, Hutchison Asia Telecommunications (HAT) had an active customer base
of approximately 43.5 million and reported total revenue of HK$6,295 million, EBITDA of HK$819
million and LBIT of HK$409 million, an improvement of 41%, 94% and 52% respectively compared
to last year. In 2014, HAT will continue to focus on growing its business in Indonesia, where major
network rollout activities were completed in the third quarter of 2013.
Finance & Investments and Others
Contribution from this segment represents returns earned on the Groups holdings of cash and liquid
investments as well as results of other small operating units.
During 2013, the Group raised HK$46,044 million from the debt and capital markets and repaid
debts as they matured and repaid early certain long-term borrowings and notes of HK$61,822 million.
As a result of refinancing at lower interest rates, the Groups weighted average cost of debt reduced
from 3.4% for 31 December 2012 to 3.1% for the year. At 31 December 2013, the Groups
consolidated cash and liquid investments totalled HK$102,787 million and consolidated debt amounted
to HK$223,822 million, resulting in consolidated net debt of HK$121,035 million and net debt to net
total capital ratio of 20.0%. The Groups consolidated cash and liquid investments as at 31 December
2013 were sufficient to repay all outstanding consolidated Group debt maturing through 2015 and
approximately 56% of the maturities in 2016.
The Group will continue to closely monitor its liquidity and debt profile and expects its consolidated
Group net debt to net total capital ratio to remain less than 25% for the foreseeable future.
Outlook
In 2013, economic uncertainty continued to affect several markets and geographies in which the
Group operates. However, with the exception of certain emerging markets, trends in the second half
of 2013 generally showed improvement, leading to a constructive outlook for the Groups businesses
overall in 2014.
Adhering to the Groups fundamental principle of always acting in the best long-term interest of our
Shareholders and taking into consideration relevant economic and political factors, the Group will
continue with the strategy of Advancing with Stability in the ongoing investment for growth in our
core businesses. Achieving sustainable recurring earnings growth and maintaining a strong financial
profile will continue to be the key objectives of the Group. Barring unforeseen material adverse
external developments, I expect that the Group will continue to meet these objectives in 2014. I
remain prudently optimistic about the Groups prospects.
I would like to thank the Board of Directors and all our dedicated employees around the world for
their continued loyalty, diligence, professionalism and contributions to the Group.

Hutchison Whampoa Limited


MarketLine

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Hutchison Whampoa Limited


Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES


Head Office
Hutchison Whampoa Limited
22nd Floor
Hutchison House
10 Harcourt Road
HKG
P:852 2128 1188
F:852 2128 1705
http://www.hutchison-whampoa.com

Other Locations and Subsidiaries


Hutchison Port Holdings Limited (HPH)
Terminal 4, Container Port Road South
Kwai Chung
HKG

A.S. Watson Retail (HK) Ltd.


Watson House, 1-5 Wo Liu Hang Road
Fo Tan, Shatin, N.T.
HKG

Cheung Kong Infrastructure Holdings


Limited
12/F Cheung Kong Centre
2 Queen's Road Central
HKG

Anderson Asphalt Limited


Room 201, Tower 2
Harbour Centre
8 Hok Cheung Street
Hunghom
Kowloon
HKG

Power Assets Holdings Limited


Rooms 1913-1914
19/F, Hutchison House
10 Harcourt Road
Central
HKG

Powercor Australia Ltd.


40 Market Street
Melbourne 3000
Victoria
AUS

Husky Energy Inc.


707-8th Avenue SW
Box 6525, Station "D"
Calgary
Alberta T2P 3G7
CAN

Alliance Construction Materials Limited


1901A, 19/F, One Harbourfront
18 Tak Fung Street
Hung Hom
Kowloon
HKG

Hutchison Whampoa Limited


MarketLine

Page 32

Hutchison Whampoa Limited


Locations and Subsidiaries

Hutchison Telecommunications Hong Kong


Holdings Limited
22/F, Hutchison House
10 Harcourt Road
HKG

Hutchison Whampoa Limited


MarketLine

Associated Technical Services Limited


Rooms 1913-1914
19/F, Hutchison House
10 Harcourt Road
Central
HKG

Page 33

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