TIDMJAR TIDMJDS
RNS Number : 9965M
Jardine Matheson Hldgs Ltd
04 August 2017
To: Business Editor 4th August 2017
For immediate release
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
Jardine Matheson Holdings Limited
Half-Yearly Results for the Six Months ended 30th June 2017
Highlights
-- Underlying profit up 20%
-- Good performances from most Group companies
-- Strong financial position maintained
"Following a first half with good trading performances across
the Group, the level of profit growth in the second half is likely
to be tempered due to fewer residential completions expected in
Hongkong Land and price competition in a number of the Group's
automotive markets."
Sir Henry Keswick, Chairman
Results
(unaudited)
Six months ended
30th June
2017 2016 Change
US$m US$m %
-------------------------------------------------------------------------- --------------- ----------------- ------
Gross revenue including
100% of associates and joint
ventures 38,072 34,569 +10
Revenue 19,430 18,026 +8
Underlying profit* attributable
to shareholders 765 636 +20
Profit attributable to shareholders 2,078 984 +111
Shareholders' funds 23,886 21,800 +10
-------------------------------------------------------------------------- --------------- ----------------- ------
US$ US$ %
-------------------------------------------------------------------------- --------------- ----------------- ------
Underlying earnings per
share* 2.04 1.70 +20
Earnings per share 5.54 2.63 +111
Net asset value per share 63.22 58.15 +9
-------------------------------------------------------------------------- --------------- ----------------- ------
USc USc %
-------------------------------------------------------------------------- --------------- ----------------- ------
Interim dividend per share 40.00 38.00 +5
-------------------------------------------------------------------------- --------------- ----------------- ------
* The Group uses 'underlying profit' in its
internal financial reporting to distinguish
between ongoing business performance and non-trading
items, as more fully described in note 7 to
the condensed financial statements. Management
considers this to be a key measure which provides
additional information to enhance understanding
of the Group's underlying business performance.
At 30th June 2017 and 31st December 2016,
respectively. Net asset value per share is
based on the book value of shareholders' funds.
----------------------------------------------------------------------------------------------------------------------
The interim dividend of USc40.00 per share will be payable on
19th October 2017 to shareholders on the register of members at the
close of business on 25th August 2017 and will be available in cash
with a scrip alternative.
Jardine Matheson Holdings Limited
Half-Yearly Results for the Six Months ended 30th June 2017
Overview
Jardine Matheson produced strong growth in underlying profit for
the first half of 2017 with good performances from many of its
businesses.
Results
The Group's underlying profit for the first six months of 2017
rose 20% to US$765 million, and underlying earnings per share were
up 20% at US$2.04. The revenue of the Group for the period was 8%
higher at US$19.4 billion, while revenue, including 100% of
associates and joint ventures, was up 10% at US$38.1 billion.
Hongkong Land's commercial interests performed well and it
recorded a higher level of sale completions in its development
properties. Astra benefited from better results from across its
businesses, while Permata Bank returned to profit. Jardine Pacific
saw improvements in most of its operations, and Jardine Motors
continued to trade well in mainland China. JLT's earnings increased
despite a challenging trading environment. Dairy Farm's trading was
mixed, although it did achieve higher profit contributions from
certain businesses. Mandarin Oriental's results were impacted
primarily by its London hotel renovation, while the contributions
from Jardine Cycle & Carriage's non-Astra interests were
lower.
Non-trading items in the first half represented a gain of
US$1,313 million, primarily US$195 million in respect of profits on
property disposals and US$1,097 million from revaluations of
investment properties, compared with a non-trading gain of US$348
million in the first half of 2016. Accordingly, the Group's profit
attributable to shareholders for the period was US$2,078 million
for the six months under review, compared with US$984 million in
2016.
The Board has declared an increased interim dividend of USc40.00
per share.
Business Developments
The Jardine Pacific business interests were expanded to include
a 28% stake in Hong Kong-listed Greatview, which was acquired
through Jardine Strategic in June. Founded in mainland China,
Greatview is the second-largest supplier of aseptic carton
packaging in China and the third-largest globally. Jardine Pacific
will be supporting Greatview's continued development, particularly
in new markets in Southeast Asia.
Jardine Motors benefited from the strong trading conditions in
mainland China for both Zung Fu and Zhongsheng. Following the
redemption of convertible bonds issued by Zhongsheng, Jardine
Strategic subscribed for additional shares in the company
increasing its interest by some 5% to 20%.
JLT made further progress with the development of its Specialty
business in the United States, with revenues more than doubling due
to strong organic growth and a first contribution from the recently
acquired Construction Risk Partners.
Hongkong Land's WF Central project in Wangfujing, Beijing is
nearing completion, with the luxury retail component opening later
this year and the Mandarin Oriental hotel following in 2018. In
Jakarta, the fifth tower at its Jakarta Land joint venture will be
ready early next year, while its prime mixed-use complex in Phnom
Penh has been completed. In June, the group agreed to purchase a
one-third interest in a development site within the Marina Bay
Financial District in Singapore, which will be connected to its
existing portfolio in the district. In addition, the group has
entered two new cities in mainland China with mixed-use development
projects in Wuhan and Nanjing.
In July, Dairy Farm agreed to increase its ownership in Rustan's
in the Philippines to 100% with the acquisition of the remaining
34% interest from its joint venture partner. Dairy Farm is
continuing to improve its appeal to customers across its range of
formats through its investment in technology, supply chain
infrastructure, stores and people.
Mandarin Oriental has announced a number of management
contracts, including a hotel operating in Santiago, Chile, and
three new hotels with branded residences being developed in Dubai,
Honolulu and Melbourne which will open between 2020 and 2022.
Following an announcement in June, Mandarin Oriental is pursuing
strategic options for its wholly-owned hotel, The Excelsior in Hong
Kong, which include the possible sale of the property for
redevelopment.
During the period under review, Jardine Cycle & Carriage
supported a US$500 million rights issue by Siam City Cement, and
subsequently increased its shareholding in the Thai cement
manufacturer to 25.5%.
Astra returned to profit growth as its net profit rose 31% under
Indonesian accounting standards. Its automotive operations did
well, despite increasing competition in the car market and soft
demand for motorcycles, with its market shares rising to 56% for
cars and 74% for motorcycles. Improvements in Permata Bank enabled
it to produce a profit following a challenging year in 2016, and in
June it completed a further US$220 million rights issue. Stronger
commodity prices led to better performances from the group's heavy
equipment and mining operations as well as its agribusiness
activities.
People
Alex Newbigging is to join the Board with effect from 1st
October 2017.
Outlook
Following a first half with good trading performances across the
Group, the level of profit growth in the second half is likely to
be tempered due to fewer residential completions expected in
Hongkong Land and price competition in a number of the Group's
automotive markets.
Sir Henry Keswick
Chairman
Operating Review
Jardine Pacific
Jardine Pacific achieved good earnings growth for the first half
of 2017 with underlying profit up 26% at US$68 million following
stronger performances in most of its operations. Jardine Schindler
benefited from continued growth in new installations and in its
maintenance portfolio, while JEC's businesses in Hong Kong traded
well. Gammon's profit improved as the comparable period had been
impacted by project timings. Trading momentum continued for Jardine
Restaurants in Taiwan and Vietnam, but Hong Kong remained
challenging. Increased cargo throughput enabled HACTL to produce a
better performance. JTH Group's profit, however, was eroded in a
weak IT market. Jardine Pacific's business portfolio now includes a
28% stake in Greatview Aseptic Packaging Company Limited, which was
acquired by Jardine Strategic in June 2017.
Jardine Motors
Jardine Motors produced an excellent result in the first half of
2017 with its underlying profit 45% higher at US$83 million. The
result includes a contribution from Zhongsheng, in which Jardine
Strategic now holds a 20% interest. Profit attributable to
shareholders was US$286 million after accounting for a US$203
million gain, principally arising from the sale of a property by
Zung Fu. In mainland China, trading results from both Zung Fu and
Zhongsheng were strong with good volume growth and improved
margins. Zung Fu's performance in Hong Kong was stable, and work is
continuing on its new showroom and workshop facilities, which will
complete in mid-2018. In the United Kingdom, the performance was
softer compared with 2016, when the results had also benefited from
a gain on the sale of a dealership.
Jardine Lloyd Thompson
JLT produced a good performance in what remained challenging
trading conditions throughout the period. Total revenue was US$877
million, an increase of 11% in its reporting currency, representing
3% organic growth. Underlying trading profit was US$140 million, an
increase of 12% in its reporting currency, or 3% at constant rates
of exchange. JLT's Risk & Insurance businesses recorded revenue
growth of 12%, with good performances in JLT Europe, JLT Re, Latin
America, Asia and the United States. The combined Employee Benefits
businesses saw headline revenue growth of 8%, driven primarily by
the strong performance of its UK Employee Benefits business, with
revenues increasing by 9%, following its successful restructuring
in 2016.
Hongkong Land
Hongkong Land's underlying profit attributable to shareholders
for the first six months was US$517 million, up 32%. The profit
attributable to shareholders was US$3,125 million after accounting
for a net gain of US$2,608 million arising on the revaluation of
investment properties. This compares with a profit of US$1,263
million in the first half of 2016, after a net revaluation gain of
US$870 million.
The group's investment properties produced an increased
contribution from the higher average rents achieved in Hong Kong.
Vacancy in Hongkong Land's Central office portfolio at 30th June
2017 was 1.5%, compared with 2.2% at the end of 2016, while the
retail portfolio was almost fully occupied. In Singapore, the
performance of its office portfolio reflected the current relative
surplus of market supply, although vacancy at the end of June was
only 0.2% compared with 0.1% at the end of 2016, with a slight
decrease in average rents.
Within Hongkong Land's development properties, being residential
and mixed-use projects developed for sale in the short to
medium-term, mainland China benefited from further sale completions
and positive market sentiment leading to both an improved profit
contribution and an increase in contracted sales. At 30th June, the
group had US$1,421 million in sold but unrecognized contracted
sales, compared with US$1,083 million at the end of 2016. Results
from Singapore reflected the completion of the 699-unit LakeVille
project, compared with no completions in the first half of 2016,
and the pre-sales continuing in two other projects were
satisfactory. Progress is being made in the group's other
developments in Indonesia and the Philippines.
Dairy Farm
Dairy Farm's sales for the period by its subsidiaries were
marginally behind last year, although flat at constant exchange
rates, as declines within supermarkets and hypermarkets in the Food
division were offset by sales growth in all its other divisions.
Underlying net profit was up 6% at US$211 million, with reductions
in the Food division being more than compensated for by strong
results from Yonghui and Maxim's in addition to improved
performances from the Health and Beauty and Home Furnishings
divisions.
In the Food division, continuing softness in certain key markets
led to sales within supermarkets and hypermarkets being 3% lower at
constant exchange rates and profits declining. The group's
convenience store operations traded well, and strong growth in
sales and profit were achieved by Yonghui in mainland China. In the
Health and Beauty division, progress was made in Hong Kong, Macau,
mainland China and Indonesia, although more challenging conditions
were experienced in Singapore and Malaysia. In Home Furnishings,
IKEA performed well, driven by strong sales in Taiwan and
Indonesia. In the Restaurants division, Maxim's delivered further
growth as it continues to expand its regional presence and range of
franchises.
Dairy Farm is continuing its programme of investment in its
technology backbone, supply chain infrastructure, stores and
people. These initiatives are supporting the expansion of the range
of fresh produce and own brand products on offer, together with the
introduction of enhanced e-commerce offers in many of its
businesses and the innovation of new store formats in most markets.
By improving the shopping experience of its customers and meeting
their changing requirements, Dairy Farm is underpinning its future
growth.
Mandarin Oriental
Mandarin Oriental's underlying profit for the first half was
US$15 million, compared with US$25 million in 2016. Profit
attributable to shareholders was also US$15 million, while in 2016
it was US$23 million. Earnings were lower during the period due to
the impact of the ongoing phased renovation of its London hotel,
which will complete in the second quarter of 2018, and the
inclusion of a traditionally weaker first quarter result in its
Boston hotel following its acquisition in April 2016. While reduced
contributions were seen from Jakarta and New York, these were
offset by better performances in Paris, Munich and Washington.
Results across the rest of the portfolio, including Hong Kong, were
broadly stable.
Mandarin Oriental currently operates 30 hotels and eight
residences in 20 countries and territories, and has a strong
pipeline of hotels and residences under development. Following an
announcement in June, the group is pursuing strategic options for
The Excelsior, Hong Kong, which include the possible sale of the
property for redevelopment. The wholly-owned property, which is the
group's only four star hotel, is situated on a prime commercial
site that has approval for the development of a commercial
building.
Jardine Cycle & Carriage
Jardine Cycle & Carriage reported an underlying profit for
the period of US$375 million, up 13%, while its profit attributable
to shareholders of US$399 million was up 22% with the benefit of
non-trading gains. Astra's contribution to the underlying profit
rose 27% to US$315 million. The contribution from the company's
Direct Motor Interests was 20% lower at US$63 million, while Other
Interests produced a contribution of US$8 million, down 46%
compared with the first half of 2016.
The weaker result in the Direct Motor Interests reflects the
impact of increasing competition, particularly for Truong Hai Auto
Corporation in Vietnam. While in Singapore, Cycle & Carriage's
earnings improved, results were also lower for Cycle & Carriage
Bintang in Malaysia and Tunas Ridean in Indonesia. For the group's
Other Interests, the 25.5%-held Siam City Cement reported a 69%
decline in profit mainly due to lower prices and sales volumes in
the Thai market and one-off expenses, partly offset by
contributions from recent acquisitions in Sri Lanka and Vietnam.
Refrigeration Electrical Engineering Corporation in Vietnam, which
is 22.9%-held, performed better with improvements in most of its
businesses.
Astra
Astra reported a net profit equivalent to US$702 million under
Indonesian accounting standards, up 31% in its reporting currency,
with improvements seen in most businesses. The group's automotive
operations performed well with market shares for both cars and
motorcycles rising, although it faced discount pressure as
competition increased in the car market, and soft demand for
motorcycles. Better results were seen from financial services with
a return to profit by Permata Bank. Higher commodity prices
benefited the heavy equipment and mining operations, as well as
Astra's agribusiness activities. Information technology, and
infrastructure and logistics saw declines in earnings.
Net income from Astra's automotive business increased by 9%,
largely due to improved car sales. The wholesale market for cars in
Indonesia grew marginally to 534,000 units, while the group's car
sales were up 9% at 298,000 units, resulting in its market share
rising from 51% to 56%. The wholesale market for motorcycles
contracted by 9% to 2.7 million units, while Astra Honda Motor's
domestic sales fell by 7% to 2.0 million units, with its market
share increasing from 73% to 74%. Net income rose 30% in its
components business, Astra Otoparts.
Within Astra's financial services business, net income rose 62%
to US$153 million with better contributions from most activities.
The consumer finance businesses saw the aggregate amount financed
increase by 8% to US$2.9 billion, while heavy equipment financing
was up 68% to US$237 million. Permata Bank's financial position
stabilized and it reported a net income of US$47 million for the
period compared with a net loss of US$62 million in the first half
of 2016. The bank benefited from an improvement in asset quality
and the sale of a portfolio of its non-performing loans. Asuransi
Astra Buana, the group's general insurance company, reported net
income up 24% due to higher underwriting and investment income,
while Astra Aviva Life continued to grow its customer base.
United Tractors, which is 60%-owned, reported net income up 85%
at US$257 million, as its businesses benefited from increased coal
prices. In construction machinery, Komatsu heavy equipment sales
were up 69% and revenues from parts and service also rose. Mining
contracting within Pamapersada Nusantara recorded increases of 4%
in coal production and 6% in overburden removal, although United
Tractors' mining subsidiaries saw coal sales reduce by 18% to 3.6
million tonnes. Acset Indonusa, the 50%-held general contractor,
reported improved earnings and contracts worth US$536 million
secured during the period. Bhumi Jati Power, which is 25%-owned, is
constructing two power plants in Central Java that are scheduled to
start commercial operations in 2021, while Suprabari Mapanindo
Mineral, an 80%-owned coking coal company in Central Kalimantan, is
expected to start production by the end of 2017.
Astra Agro Lestari, which is 80%-owned, saw its net income rise
during the period by 32% to US$78 million. Revenue benefited from
higher crude palm oil prices and increased production. Average
crude palm oil prices achieved were up 16%, while sales of crude
palm oil and its derivatives rose 10% to 833,000 tonnes.
The contribution from Astra's infrastructure and logistics
business was down 21% to US$8 million, mainly due to initial losses
arising on toll roads and lower earnings from its water utility
business following a 3% decrease in sales. The group continues to
develop its toll road activities which, including interests in 51km
of greenfield sites, now extend to 353km. Serasi Autoraya's net
income rose due to higher net margins in its car leasing and rental
business.
Astra's information technology business saw lower earnings as
Astra Graphia reported net income down 25% at US$5 million, mainly
due to lower revenue from its IT solutions business. Within Astra's
property activities, net income reflected improved development
earnings recognized under Indonesian accounting standards on its
Anandamaya Residences development, which will complete in 2018.
Jardine Matheson Holdings Limited
Consolidated Profit and Loss
Account
(unaudited)
Six months ended 30th June Year ended 31st December
2017 2016 2016
Underlying Underlying Underlying
business Non-trading business Non-trading business Non-trading
performance items Total performance items Total performance items Total
US$m US$m US$m US$m US$m US$m US$m US$m US$m
Revenue (note 2) 19,430 - 19,430 18,026 - 18,026 37,051 - 37,051
Net operating costs (note
3) (17,812) 222 (17,590) (16,622) (6) (16,628) (33,905) 93 (33,812)
Change in fair value
of investment properties - 2,694 2,694 - 986 986 - 2,573 2,573
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
Operating profit 1,618 2,916 4,534 1,404 980 2,384 3,146 2,666 5,812
Net financing charges
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
- financing charges (163) - (163) (145) - (145) (297) - (297)
- financing income 85 - 85 69 - 69 146 - 146
(78) - (78) (76) - (76) (151) - (151)
Share of results of associates
and joint ventures (note
4)
* before change in fair value of investment properties 590 9 599 398 (11) 387 734 7 741
* change in fair value of investment properties - (56) (56) - (121) (121) - (56) (56)
590 (47) 543 398 (132) 266 734 (49) 685
Profit before tax 2,130 2,869 4,999 1,726 848 2,574 3,729 2,617 6,346
Tax (note 5) (377) (4) (381) (315) 1 (314) (654) (5) (659)
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
Profit after tax 1,753 2,865 4,618 1,411 849 2,260 3,075 2,612 5,687
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
Attributable to:
Shareholders of the Company
(notes 6 & 7) 765 1,313 2,078 636 348 984 1,386 1,117 2,503
Non-controlling interests 988 1,552 2,540 775 501 1,276 1,689 1,495 3,184
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
1,753 2,865 4,618 1,411 849 2,260 3,075 2,612 5,687
-------- ------------ -------- ----------- ------------ -------- ----------- ------------ --------
US$ US$ US$ US$ US$ US$
Earnings per share (note
6)
- basic 2.04 5.54 1.70 2.63 3.71 6.69
- diluted 2.03 5.53 1.70 2.63 3.70 6.68
-------- -------- ----------- -------- ----------- --------
Jardine Matheson Holdings Limited
Consolidated Statement of Comprehensive
Income
(unaudited) Year ended
Six months ended 31st
30th June December
2017 2016 2016
US$m US$m US$m
Profit for the period 4,618 2,260 5,687
Other comprehensive income/(expense)
Items that will not be reclassified
to profit or loss:
--------
Remeasurements of defined benefit
plans (2) (4) 23
Net revaluation surplus before
transfer to investment properties
- intangible assets - 93 105
- tangible assets - 1 2
Tax on items that will not be
reclassified 1 1 (10)
(1) 91 120
Share of other comprehensive income/
(expense) of associates and joint
ventures 10 (34) (25)
--------- -------- ----------
9 57 95
Items that may be reclassified
subsequently to profit or loss:
Net exchange translation differences
--------- -------- ----------
- net gain/(loss) arising during
the period 148 353 (139)
- transfer to profit and loss - - (3)
148 353 (142)
Revaluation of other investments
--------- -------- ----------
- net gain/(loss) arising during
the period 97 (8) 113
- transfer to profit and loss (5) - -
92 (8) 113
Cash flow hedges
--------- -------- ----------
- net loss arising during the
period (54) (22) (173)
- transfer to profit and loss 7 17 186
(47) (5) 13
Tax relating to items that may
be reclassified 9 4 1
Share of other comprehensive income/
(expense) of associates and joint
ventures 262 164 (213)
--------- -------- ----------
464 508 (228)
Other comprehensive income/(expense)
for the period, net of tax 473 565 (133)
--------- -------- ----------
Total comprehensive income for
the period 5,091 2,825 5,554
--------- -------- ----------
Attributable to:
Shareholders of the Company 2,358 1,101 2,310
Non-controlling interests 2,733 1,724 3,244
--------- -------- ----------
5,091 2,825 5,554
--------- -------- ----------
Jardine Matheson Holdings Limited
Consolidated Balance Sheet
(unaudited) At 31st
At 30th June December
2017 2016 2016
US$m US$m US$m
Assets
Intangible assets 3,245 2,859 2,825
Tangible assets 6,619 6,289 6,239
Investment properties 31,324 26,930 28,609
Bearer plants 512 528 497
Associates and joint ventures 12,006 10,448 10,595
Other investments 1,286 1,141 1,369
Non-current debtors 3,238 2,923 2,936
Deferred tax assets 404 333 375
Pension assets 4 4 5
------ ------------- ---------
Non-current assets 58,638 51,455 53,450
------ ------------- ---------
Properties for sale 2,103 2,811 2,315
Stocks and work in progress 3,342 3,139 3,281
Current debtors 6,660 6,468 6,697
Current investments 50 47 65
Current tax assets 165 211 169
Bank balances and other liquid
funds
------ ------------- ---------
- non-financial services companies 5,663 4,624 5,314
- financial services companies 234 352 229
5,897 4,976 5,543
------ ------------- ---------
18,217 17,652 18,070
Non-current assets classified as
held for sale 3 - 3
------ ------------- ---------
Current assets 18,220 17,652 18,073
------ ------------- ---------
Total assets 76,858 69,107 71,523
------ ------------- ---------
Equity
Share capital 180 178 178
Share premium and capital reserves 181 168 175
Revenue and other reserves 28,005 24,333 25,547
Own shares held (4,480) (3,963) (4,100)
------- ------- -------
Shareholders' funds 23,886 20,716 21,800
Non-controlling interests 30,119 26,721 27,937
------- ------- -------
Total equity 54,005 47,437 49,737
------- ------- -------
Liabilities
Long-term borrowings
------- ------- -------
- non-financial services companies 5,139 5,735 5,343
- financial services companies 1,510 1,765 1,518
6,649 7,500 6,861
Deferred tax liabilities 580 478 500
Pension liabilities 443 439 419
Non-current creditors 505 436 440
Non-current provisions 163 156 151
------- ------- -------
Non-current liabilities 8,340 9,009 8,371
------- ------- -------
Current creditors 9,206 8,430 8,714
Current borrowings
------- ------- -------
- non-financial services companies 2,447 1,902 2,058
- financial services companies 2,410 1,937 2,265
4,857 3,839 4,323
Current tax liabilities 344 295 266
Current provisions 106 97 112
------- ------- -------
Current liabilities 14,513 12,661 13,415
------- ------- -------
Total liabilities 22,853 21,670 21,786
------- ------- -------
Total equity and liabilities 76,858 69,107 71,523
------- ------- -------
Jardine Matheson
Holdings Limited
Consolidated
Statement of
Changes
in Equity
Attributable
to Attributable
Asset Own shareholders to
Share Share Capital Revenue revaluation Hedging Exchange shares of the non-controlling Total
capital premium reserves reserves reserves reserves reserves held Company interests equity
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
Six months ended
30th June 2017
(unaudited)
At 1st January
2017 178 20 155 27,223 210 (32) (1,854) (4,100) 21,800 27,937 49,737
Total
comprehensive
income - - - 2,152 - 4 202 - 2,358 2,733 5,091
Dividends paid
by the Company
(note 8) - - - (420) - - - - (420) 75 (345)
Dividends paid
to
non-controlling
interests - - - - - - - - - (550) (550)
Issue of shares - 9 - - - - - - 9 - 9
Employee share
option schemes - - 11 - - - - - 11 1 12
Scrip issued in
lieu of
dividends 2 (2) - 552 - - - - 552 - 552
Increase in own
shares held - - - - - - - (380) (380) (75) (455)
Subsidiaries
acquired - - - - - - - - - 7 7
Change in
interests in
subsidiaries - - - (15) - - - - (15) (9) (24)
Change in
interests in
associates
and joint
ventures - - - (29) - - - - (29) - (29)
Transfer - 5 (17) 12 - - - - - - -
At 30th June
2017 180 32 149 29,475 210 (28) (1,652) (4,480) 23,886 30,119 54,005
------- ------- -------- -------- ----------- -------- -------- ------- ------------ --------------- ------
Six months ended
30th June 2016
(unaudited)
At 1st January
2016 175 21 137 24,578 176 (14) (1,591) (3,596) 19,886 25,614 45,500
Total
comprehensive
income - - - 938 30 (17) 150 - 1,101 1,724 2,825
Dividends paid
by the Company
(note 8) - - - (399) - - - - (399) 72 (327)
Dividends paid
to
non-controlling
interests - - - - - - - - - (530) (530)
Issue of shares - 1 - - - - - - 1 - 1
Employee share
option schemes - - 12 - - - - - 12 1 13
Scrip issued in
lieu of
dividends 3 (3) - 515 - - - - 515 - 515
Increase in own
shares held - - - - - - - (367) (367) (57) (424)
Capital
contribution
from
non-controlling
interests - - - - - - - - - 76 76
Change in
interests in
subsidiaries - - - (31) - - - - (31) (179) (210)
Change in
interests in
associates
and joint
ventures - - - (2) - - - - (2) - (2)
Transfer - 1 (1) - - - - - - - -
At 30th June
2016 178 20 148 25,599 206 (31) (1,441) (3,963) 20,716 26,721 47,437
------- ------- -------- -------- ----------- -------- -------- ------- ------------ --------------- ------
Year ended 31st
December 2016
At 1st January
2016 175 21 137 24,578 176 (14) (1,591) (3,596) 19,886 25,614 45,500
Total
comprehensive
income - - - 2,558 34 (18) (264) - 2,310 3,244 5,554
Dividends paid
by the Company - - - (541) - - - - (541) 97 (444)
Dividends paid
to
non-controlling
interests - - - - - - - - - (778) (778)
Unclaimed
dividends
forfeited - - - 1 - - - - 1 - 1
Issue of shares - 1 - - - - - - 1 - 1
Employee share
option schemes - - 22 - - - - - 22 1 23
Scrip issued in
lieu of
dividends 3 (3) - 700 - - - - 700 - 700
Increase in own
shares held - - - - - - - (504) (504) (73) (577)
Capital
contribution
from
non-controlling
interests - - - - - - - - - 83 83
Change in
interests in
subsidiaries - - - (74) - - 1 - (73) (251) (324)
Change in
interests in
associates
and joint
ventures - - - (2) - - - - (2) - (2)
Transfer - 1 (4) 3 - - - - - - -
------- ------- -------- -------- ----------- -------- -------- ------- ------------ --------------- ------
At 31st December
2016 178 20 155 27,223 210 (32) (1,854) (4,100) 21,800 27,937 49,737
------- ------- -------- -------- ----------- -------- -------- ------- ------------ --------------- ------
Total comprehensive income for the six months ended 30th June
2017 included in revenue reserves comprises profit attributable to
shareholders of the Company of US$2,078 million (2016: US$984
million) and net fair value gain on other investments of US$64
million (2016: net fair value loss of US$13 million). Cumulative
net fair value gain on other investments amounted to US$411
million.
Total comprehensive income for the year ended 31st December 2016
included in revenue reserves comprises profit attributable to
shareholders of the Company of US$2,503 million and net fair value
gain on other investments of US$94 million. Cumulative net fair
value gain on other investments amounted to US$347 million.
______________________________________________________________________________________________________________________________________________________
Jardine Matheson Holdings Limited
Consolidated Cash Flow Statement
(unaudited)
Six months ended Year ended
30th June 31st December
2017 2016 2016
US$m US$m US$m
Operating activities
--------- -------- --------------
Operating profit 4,534 2,384 5,812
Change in fair value of investment properties (2,694) (986) (2,573)
Depreciation and amortization 476 466 945
Other non-cash items (69) 109 120
Increase in working capital (42) (186) (94)
Interest received 79 68 136
Interest and other financing charges
paid (172) (141) (289)
Tax paid (316) (335) (704)
--------- -------- --------------
1,796 1,379 3,353
Dividends from associates and joint
ventures 534 341 597
Cash flows from operating activities 2,330 1,720 3,950
Investing activities
--------- -------- --------------
Purchase of subsidiaries (note 10(a)) (24) (49) (60)
Purchase of associates and joint ventures
(note 10(b)) (1,079) (221) (652)
Purchase of other investments (note
10(c)) (148) (69) (294)
Purchase of intangible assets (95) (64) (142)
Purchase of tangible assets (560) (495) (996)
Additions to investment properties (217) (136) (313)
Additions to bearer plants (19) (28) (56)
Advance to associates and joint ventures
(note 10(d)) (304) (3) (81)
Advance and repayment from associates
and joint ventures (note10(e)) 232 33 175
Sale of subsidiaries 14 15 16
Sale of associates and joint ventures 20 - 5
Redemption of convertible bonds in Zhongsheng 398 - -
Sale of other investments (note 10(f)) 117 34 122
Sale of intangible assets 1 3 8
Sale of tangible assets 210 38 204
Sale of investment properties 42 1 1
Cash flows from investing activities (1,412) (941) (2,063)
Financing activities
--------- -------- --------------
Issue of shares 5 1 1
Capital contribution from non-controlling
interests - 76 77
Change in interests in subsidiaries
(note 10(g)) (9) (210) (339)
Drawdown of borrowings 12,813 11,638 23,629
Repayment of borrowings (12,683) (11,428) (23,314)
Dividends paid by the Company (248) (236) (322)
Dividends paid to non-controlling interests (555) (532) (783)
Cash flows from financing activities (677) (691) (1,051)
--------- -------- --------------
Net increase in cash and cash equivalents 241 88 836
Cash and cash equivalents at beginning
of period 5,531 4,773 4,773
Effect of exchange rate changes 68 49 (78)
--------- -------- --------------
Cash and cash equivalents at end of
period 5,840 4,910 5,531
--------- -------- --------------
Jardine Matheson Holdings Limited
Analysis of Profit Contribution
(unaudited)
Six months ended Year ended
30th June 31st December
2017 2016 2016
US$m US$m US$m
Reportable segments
Jardine Pacific 68 54 135
Jardine Motors 83 57 126
Jardine Lloyd Thompson 36 31 56
Hongkong Land 216 163 353
Dairy Farm 137 128 297
Mandarin Oriental 10 15 36
Jardine Cycle & Carriage 45 58 125
Astra 198 155 312
--------- -------- --------------
793 661 1,440
Corporate and other interests (28) (25) (54)
--------- -------- --------------
Underlying profit attributable
to shareholders* 765 636 1,386
Increase in fair value of investment
properties 1,097 363 1,061
Other non-trading items 216 (15) 56
--------- -------- --------------
Profit attributable to shareholders 2,078 984 2,503
--------- -------- --------------
Analysis of Jardine Pacific's contribution
Jardine Schindler 23 20 44
JEC 6 6 28
Gammon 16 8 18
Jardine Restaurants 16 14 28
Transport Services 11 6 17
JTH Group - 3 9
Corporate and other interests (4) (3) (9)
--------- -------- --------------
68 54 135
--------- -------- --------------
Analysis of Jardine Motors' contribution
Hong Kong and mainland China 76 35 98
United Kingdom 8 23 30
Corporate (1) (1) (2)
--------- -------- --------------
83 57 126
--------- -------- --------------
* Underlying profit attributable to shareholders is the measure
of profit adopted by the Group in accordance with IFRS 8 'Operating
Segments'.
__________________________________________________________________________________________
Jardine Matheson Holdings Limited
Notes to Condensed Financial Statements
1. Accounting Policies and Basis of Preparation
The condensed financial statements have been prepared in
accordance with IAS 34 'Interim Financial Reporting'. The condensed
financial statements have been prepared on a going concern basis.
The condensed financial statements have not been audited or
reviewed by the Group's auditors pursuant to the UK Auditing
Practices Board guidance on the review of interim financial
information.
There are no new standards or amendments, which are effective in
the current accounting period and relevant to the Group's
operations, that have a significant effect on the Group's
accounting policies. There have been no changes to the accounting
policies described in the 2016 annual financial statements.
2. Revenue
Six months ended 30th June
Gross revenue Revenue
2017 2016 2017 2016
US$m US$m US$m US$m
By business:
Jardine Pacific 3,003 2,879 1,112 1,120
Jardine Motors 2,737 2,595 2,737 2,595
Jardine Lloyd Thompson 877 881 - -
Hongkong Land 2,381 1,209 1,297 783
Dairy Farm 10,448 10,110 5,505 5,562
Mandarin Oriental 462 469 287 288
Jardine Cycle & Carriage 3,446 3,276 1,150 1,120
Astra 14,850 13,271 7,369 6,583
Intersegment transactions (132) (121) (27) (25)
----------------- ---------------- ----------- -----------
38,072 34,569 19,430 18,026
----------------- ---------------- ----------- -----------
Gross revenue comprises revenue together with 100% of revenue
from associates and joint ventures.
3. Net Operating Costs
Six months ended 30th June
2017 2016
US$m US$m
Cost of sales (14,886) (13,845)
Other operating income 481 239
Selling and distribution costs (2,152) (2,073)
Administration expenses (972) (905)
Other operating expenses (61) (44)
-------- --------
(17,590) (16,628)
-------- --------
Net operating costs included the following
gains/(losses) from non-trading items:
Sale of property interests 195 -
Sale of businesses 4 -
Change in interests in associates and
joint ventures 13 (4)
Value added tax recovery in Jardine Motors 10 -
Acquisition-related costs - (2)
222 (6)
-------- --------
4. Share of Results of Associates and Joint Ventures
Six months ended 30th June
2017 2016
US$m US$m
By business:
Jardine Pacific 55 38
Jardine Lloyd Thompson 36 20
Hongkong Land 58 (61)
Dairy Farm 62 46
Mandarin Oriental 3 5
Jardine Cycle & Carriage 57 69
Astra 271 148
Corporate and other interests 1 1
----- -----
543 266
----- -----
Share of results of associates and joint
ventures included the following gains/(losses)
from non-trading items:
Change in fair value of investment properties (56) (121)
Change in interest in an associate 8 -
Sale of businesses 1 (1)
Litigation costs - (10)
(47) (132)
----- -----
Results are shown after tax and non-controlling interests in the
associates and joint ventures.
5. Tax
Six months ended 30th June
2017 2016
US$m US$m
Tax charged to profit and loss is analyzed
as follows:
Current tax (397) (337)
Deferred tax 16 23
----- -----
(381) (314)
----- -----
Greater China (144) (133)
Southeast Asia (232) (173)
United Kingdom (3) (5)
Rest of the world (2) (3)
----- -----
(381) (314)
----- -----
Tax relating to components of other comprehensive
income or expense is analyzed as follows:
Remeasurements of defined benefit plans 1 1
Cash flow hedges 9 4
10 5
----- -----
Tax on profits has been calculated at rates of taxation
prevailing in the territories in which the Group operates.
Share of tax charge of associates and joint ventures of US$228
million and US$5 million (2016: charge of US$105 million and credit
of US$14 million) are included in share of results of associates
and joint ventures and share of other comprehensive income of
associates and joint ventures, respectively.
6. Earnings per Share
Basic earnings per share are calculated on profit attributable
to shareholders of US$2,078 million (2016: US$984 million) and on
the weighted average number of 375 million (2016: 374 million)
shares in issue during the period.
Diluted earnings per share are calculated on profit attributable
to shareholders of US$2,078 million (2016: US$984 million), which
is after adjusting for the effects of the conversion of dilutive
potential ordinary shares of subsidiaries, associates or joint
ventures, and on the weighted average number of 376 million (2016:
374 million) shares after adjusting for the number of shares which
are deemed to be issued for no consideration under the Senior
Executive Share Incentive Schemes based on the average share price
during the period.
The weighted average number of shares is arrived at as
follows:
Ordinary shares
in millions
2017 2016
Weighted average number of shares in issue 716 704
Company's share of shares held by subsidiaries (341) (330)
------------ ------------
Weighted average number of shares for
basic earnings
per share calculation 375 374
Adjustment for shares deemed to be issued
for no consideration under the Senior
Executive Share
Incentive Schemes 1 -
------------ ------------
Weighted average number of shares for
diluted earnings per share calculation 376 374
------------ ------------
Additional basic and diluted earnings per share are also
calculated based on underlying profit attributable to shareholders.
A reconciliation of earnings is set out below:
Six months ended 30th June
2017 2016
Basic Diluted Basic Diluted
earnings earnings earnings earnings
per share per share per share per share
US$m US$ US$ US$m US$ US$
Profit attributable
to shareholders 2,078 5.54 5.53 984 2.63 2.63
Non-trading items (note
7) (1,313) (348)
------- ------
Underlying profit
attributable
to shareholders 765 2.04 2.03 636 1.70 1.70
------- ------
7. Non-trading items
Non-trading items are separately identified to provide greater
understanding of the Group's underlying business performance. Items
classified as non-trading items include fair value gains or losses
on revaluation of investment properties; gains and losses arising
from the sale of businesses, investments and properties; impairment
of non-depreciable intangible assets and other investments;
provisions for the closure of businesses; acquisition-related costs
in business combinations; and other credits and charges of a
non-recurring nature that require inclusion in order to provide
additional insight into underlying business performance.
Six months ended 30th June
2017 2016
US$m US$m
By business:
Jardine Pacific 5 -
Jardine Motors 203 -
Jardine Lloyd Thompson - (11)
Hongkong Land 1,090 363
Dairy Farm 1 -
Mandarin Oriental - (1)
Jardine Cycle & Carriage 5 (3)
Astra 9 -
1,313 348
----- -----
An analysis of non-trading items after
interest, tax and non-controlling interests
is set out below:
Change in fair value of investment properties
- Hongkong Land 1,090 363
- other 7 -
Sale of property interests 195 -
Sale of businesses 5 (1)
Change in interests in associates and
joint ventures 8 (3)
Value added tax recovery in Jardine Motors 8 -
Litigation costs - (10)
Acquisition-related costs - (1)
1,313 348
----- -----
8. Dividends
Six months ended 30th June
2017 2016
US$m US$m
Final dividend in respect of 2016 of USc112.00
(2015: USc107.00) per share 800 751
Company's share of dividends paid on the
shares held by subsidiaries (380) (352)
----- -----
420 399
----- -----
An interim dividend in respect of 2017 of USc40.00 (2016:
USc38.00) per share amounting to a total of US$289 million (2016:
US$270 million) is declared by the Board. The net amount after
deducting the Company's share of the dividends payable on the
shares held by subsidiaries of US$139 million (2016: US$128
million) will be accounted for as an appropriation of revenue
reserves in the year ending 31st December 2017.
9. Financial Instruments
Financial instruments by category
The fair values of financial assets and financial liabilities,
together with carrying amounts at 30th June 2017 and 31st December
2016 are as follows:
Other
Other financial
financial instruments
instruments fair value
Loans Derivatives at through Total
and used for Available- amortized profit carrying Fair
receivables hedging for-sale cost and loss amount value
US$m US$m US$m US$m US$m US$m US$m
30th June 2017
Assets
Other investments - - 1,332 - - 1,332 1,332
Debtors 8,445 59 - - 12 8,516 8,521
Bank balances
and other liquid
funds 5,897 - - - - 5,897 5,897
----------- -----------
14,342 59 1,332 - 12 15,745 15,750
----------- ----------- ---------- ----------- ----------- -------- --------
Liabilities
Borrowings
(excluding finance
lease liabilities) - - - (11,456) - (11,456) (11,594)
Finance lease
liabilities - - - (50) - (50) (50)
Trade and other
payables excluding
non-financial
liabilities - (59) - (7,713) (10) (7,782) (7,782)
----------- ----------- ---------- ----------- ----------- -------- --------
- (59) - (19,219) (10) (19,288) (19,426)
----------- ----------- ---------- ----------- ----------- -------- --------
31st December
2016
Assets
Other investments - - 1,427 - - 1,427 1,427
Debtors 8,271 119 - - 12 8,402 8,323
Bank balances
and
other liquid funds 5,543 - - - - 5,543 5,543
----------- ----------- ---------- ----------- ----------- -------- --------
13,814 119 1,427 - 12 15,372 15,293
----------- ----------- ---------- ----------- ----------- -------- --------
Liabilities
Borrowings
(excluding finance
lease liabilities) - - - (11,129) - (11,129) (11,214)
Finance lease
liabilities - - - (55) - (55) (55)
Trade and other
payables excluding
non-financial
liabilities - (29) - (7,104) (10) (7,143) (7,143)
----------- ----------- ---------- ----------- ----------- -------- --------
- (29) - (18,288) (10) (18,327) (18,412)
----------- ----------- ---------- ----------- ----------- -------- --------
Fair value estimation
(i) Financial instruments that are measured at fair value
For financial instruments that are measured at fair value in the
balance sheet, the corresponding fair value measurements are
disclosed by level of the following fair value measurement
hierarchy:
(a) Quoted prices (unadjusted) in active markets for identical
assets or liabilities ('quoted prices in active markets')
The fair values of listed securities, which are classified as
available-for-sale, are based on quoted prices in active markets at
the balance sheet date. The quoted market price used for listed
investments held by the Group is the current bid price.
(b) Inputs other than quoted prices in active markets that are
observable for the asset or liability, either directly or
indirectly ('observable current market transactions')
The fair values of derivative financial instruments are
determined using rates quoted by the Group's bankers at the balance
sheet date. The rates for interest rate swaps and caps,
cross-currency swaps, forward foreign exchange contracts and credit
default swaps are calculated by reference to market interest rates
and foreign exchange rates.
The fair values of unlisted investments, which are classified as
available-for-sale and mainly include club and school debentures,
are determined using prices quoted by brokers at the balance sheet
date.
(c) Inputs for assets or liabilities that are not based on
observable market data ('unobservable inputs')
The fair values of other unlisted securities, which are
classified as available-for-sale, are determined using valuation
techniques by reference to observable current market transactions
(including price-to earnings and price-to book ratios of listed
securities of entities engaged in similar industries) or the market
prices of the underlying investments with certain degree of entity
specific estimates. The fair value of convertible component of
convertible bonds held is made reference to the quoted price of the
underlying shares and estimation on volatility.
There were no changes in valuation techniques during the six
months ended 30th June 2017 and the year ended 31st December
2016.
The table below analyzes financial instruments carried at fair
value at 30th June 2017 and 31st December 2016, by the levels in
the fair value measurement hierarchy:
Quoted Observable
prices current
in active market Unobservable
markets transactions inputs Total
US$m US$m US$m US$m
30th June 2017
Assets
Available-for-sale financial
assets
--------- ------------ ------------ -----
- listed securities 1,229 - - 1,229
- unlisted investments - 46 57 103
1,229 46 57 1,332
Derivative designated at
fair value
* through other comprehensive income - 42 - 42
* through profit and loss - 17 - 17
1,229 105 57 1,391
--------- ------------ ------------ -----
Liabilities
Contingent consideration
payable - - (10) (10)
Derivative designated at
fair value
* through other comprehensive income - (55) - (55)
* through profit and loss - (4) - (4)
- (59) (10) (69)
--------- ------------ ------------ -----
31st December 2016
Assets
Available-for-sale financial
assets
--------- ------------ ------------ -----
- listed securities 1,327 - - 1,327
- unlisted investments - 44 56 100
1,327 44 56 1,427
Derivative designated at
fair value
- through other comprehensive
income - 102 - 102
* through profit and loss - 17 - 17
1,327 163 56 1,546
--------- ------------ ------------ -----
Liabilities
Contingent consideration
payable - - (10) (10)
Derivative designated at
fair value
* through other comprehensive income - (21) - (21)
* through profit and loss - (8) - (8)
- (29) (10) (39)
--------- ------------ ------------ -----
There were no transfers among the three categories during the
six months ended 30th June 2017 and the year ended 31st December
2016.
Movement of financial instruments which are valued based on
unobservable inputs during the six months ended 30th June 2017 and
year ended 31st December 2016 are as follows:
Available-for-sale Contingent
financial consideration
assets payable
US$m US$m
At 1st January 2017 56 (10)
Exchange differences 1 -
At 30th June 2017 57 (10)
------------------ --------------
At 1st January 2016 55 (27)
Exchange differences (1) -
Additions 1 (1)
Net change in fair value during the
year
- included in other comprehensive income 1 -
* included in profit and loss - 15
Adjustment of contingent consideration - 3
------------------ --------------
At 31st December 2016 56 (10)
------------------ --------------
The contingent consideration payable mainly arose from Astra's
acquisition of a 60% interest in PT Duta Nurcahya in 2012 and
represents the fair value of service fee payable for mining
services to be provided by the vendor.
(ii) Financial instruments that are not measured at fair
value
The fair values of current debtors, bank balances and other
liquid funds, current creditors and current borrowings are assumed
to approximate their carrying amounts due to the short-term
maturities of these assets and liabilities.
The fair values of long-term borrowings are based on market
prices or are estimated using the expected future payments
discounted at market interest rates.
10. Notes to Consolidated Cash Flow Statement
(a) Purchase of subsidiaries
Six months ended 30th June
2017 2016
Fair Fair
value value
US$m US$m
Intangible assets 307 -
Tangible assets 154 25
Associates and joint ventures 70 -
Deferred tax assets 12 -
Current assets 14 10
Deferred tax liabilities (86) -
Current liabilities (129) (1)
Long-term borrowings (35) -
Other non-current liabilities (1) -
Fair value of identifiable net assets
acquired 306 34
Adjustment for non-controlling interests (7) -
Goodwill 11 14
------ ------
Total consideration 310 48
Adjustment for deposit paid in previous
year (12) -
Adjustment for deferred consideration (79) -
Carrying value of an associate (194) -
Payment for contingent consideration - 1
Cash and cash equivalents of subsidiaries
acquired (1) -
------ ------
Net cash outflow 24 49
------ ------
For the subsidiaries acquired during 2017, the fair values of
identifiable assets and liabilities at the acquisition dates are
provisional and will be finalized within one year after the
acquisition dates.
Net cash outflow for purchase of subsidiaries for the six months
ended 30th June 2017 included US$13 million for Jardine Motors'
acquisition of a motor dealership in the United Kingdom, and an
additional consideration of US$9 million for Astra's acquisition of
an 80% interest in PT Suprabari Mapanindo Mineral, a coal mining
company, upon completion in March 2017.
Revenue and loss after tax since acquisition in respect of
subsidiaries acquired during the six months ended 30th June 2017
amounted to US$27 million and US$5 million, respectively. Had the
acquisitions occurred on 1st January 2017, consolidated revenue and
consolidated profit after tax for the six months ended 30th June
2017 would have been US$19,466 million and US$4,594 million,
respectively.
Net cash outflow for the six months ended 30th June 2016
comprised Jardine Motors' acquisition of various motor dealerships
in the United Kingdom during the second quarter of 2016.
Goodwill in both periods mainly arose from the acquisition of
motor dealerships which were attributable to the expected synergies
with its existing retail network. None of the goodwill is expected
to be deductible for tax purposes.
(b) Purchase of associates and joint ventures for the six months
ended 30th June 2017 included Jardine Cycle & Carriage's
subscription to rights issue and purchase of additional shares in
Siam City Cement Public Company Limited in Thailand of US$138
million, increasing its interest from 24.9% to 25.5%; Astra's
investments in toll road operators of US$264 million and a power
plant operator of US$206 million in Indonesia, and subscription to
PT Bank Permata's rights issue of US$44 million; and Jardine
Strategic's acquisition of a 28% interest in Greatview Aseptic
Packaging Company Limited, an aseptic carton packaging supplier, of
US$246 million and additional investment in Zhongsheng of US$172
million, increasing its interest from 15.5% to 20.0%.
Purchase the six months ended 30th June 2016 included US$183
million for Astra's subscription to PT Bank Permata's rights issue
and US$22 million for Astra's capital injections into certain
associates and joint ventures in Indonesia.
(c) Purchase of other investments for the six months ended 30th
June 2017 and 2016 mainly included acquisition of securities by
Astra.
(d) Advance to associates and joint ventures for the six months
ended 30th June 2017 and 2016 mainly included Hongkong Land's
advance to its property joint ventures.
(e) Advance and repayment from associates and joint ventures for
the six months ended 30th June 2017 and 2016 mainly included
advance and repayment from Hongkong Land's property joint
ventures.
(f) Sale of other investments for the six months ended 30th June
2017 and 2016 comprised Astra's sale of securities.
(g) Change in interests in subsidiaries
Six months ended 30th June
2017 2016
US$m US$m
Increase in attributable interests
- Jardine Strategic - (120)
- Mandarin Oriental - (67)
- Jardine Cycle & Carriage - (23)
- other (24) -
Decrease in attributable interests 15 -
(9) (210)
----- -----
Increase in attributable interests in other subsidiaries for the
six months ended 30th June 2017 comprised Jardine Motors'
acquisition of an additional 40% interest in a motor dealership in
mainland China, increasing its controlling interest to 100%.
Decrease in attributable interests for the six months ended 30th
June 2017 comprised balance of proceeds for Hongkong Land's sale of
a 6% interest in Wangfu Central Real Estate Development Company
Limited in 2016, reducing its controlling interest to 84%.
11. Capital Commitments and Contingent Liabilities
Total capital commitments at 30th June 2017 and 31st December
2016 amounted to US$2,254 million and US$2,118 million,
respectively.
Various Group companies are involved in litigation arising in
the ordinary course of their respective businesses. Having reviewed
outstanding claims and taking into account legal advice received,
the Directors are of the opinion that adequate provisions have been
made in the condensed financial statements.
12. Related Party Transactions
In the normal course of business the Group undertakes a variety
of transactions with certain of its associates and joint
ventures.
The most significant of such transactions relate to the
purchases of motor vehicles and spare parts from the Group's
associates and joint ventures in Indonesia including PT
Toyota-Astra Motor, PT Astra Honda Motor and PT Astra Daihatsu
Motor. Total cost of motor vehicles and spare parts purchased for
the six months ended 30th June 2017 amounted to US$2,547 million
(2016: US$2,474 million). The Group also sells motor vehicles and
spare parts to its associates and joint ventures in Indonesia
including PT Astra Honda Motor, PT Astra Daihatsu Motor and PT
Tunas Ridean. Total revenue from sales of motor vehicles and spare
parts for the six months ended 30th June 2017 amounted to US$289
million (2016: US$288 million).
PT Bank Permata provides banking services to the Group. The
Group's deposits with PT Bank Permata at 30th June 2017 amounted to
US$352 million (2016: US$480 million).
There were no other related party transactions that might be
considered to have a material effect on the financial position or
performance of the Group that were entered into or changed during
the first six months of the current financial year.
Amounts of outstanding balances with associates and joint
ventures are included in debtors and creditors, as appropriate.
Jardine Matheson Holdings Limited
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and
internal control. The following have been identified previously as
the areas of principal risk and uncertainty facing the Company, and
they remain relevant in the second half of the year.
-- Economic Risk
-- Commercial Risk and Financial Risk
-- Concessions, Franchises and Key Contracts
-- Regulatory and Political Risk
-- Terrorism, Pandemic and Natural Disasters
For greater detail, please refer to page 122 of the Company's
Annual Report for 2016, a copy of which is available on the
Company's website www.jardines.com.
Responsibility Statement
The Directors of the Company confirm to the best of their
knowledge that:
(a) the condensed financial statements have been prepared in accordance with IAS 34; and
(b) the interim management report includes a fair review of all
information required to be disclosed by the Disclosure Guidance and
Transparency Rules 4.2.7 and 4.2.8 issued by the Financial Conduct
Authority of the United Kingdom.
For and on behalf of the Board
Ben Keswick
John Witt
Directors
The interim dividend of USc40.00 per share will be payable
on 19th October 2017 to shareholders on the register of members
at the close of business on 25th August 2017. The shares will
be quoted ex-dividend on the Singapore Exchange and the London
Stock Exchange on 23rd and 24th August 2017, respectively.
The share registers will be closed from 28th August to 1st
September 2017, inclusive. The dividend will be available
in cash with a scrip alternative.
Shareholders will receive their cash dividends in United States
dollars, unless they are registered on the Jersey branch register
where they will have the option to elect for sterling. These
shareholders may make new currency elections for the 2017
interim dividend by notifying the United Kingdom transfer
agent in writing by 29th September 2017. The sterling equivalent
of dividends declared in United States dollars will be calculated
by reference to a rate prevailing on 4th October 2017.
Shareholders holding their shares through CREST in the United
Kingdom will receive their cash dividends in sterling only
as calculated above. Shareholders holding their shares through
The Central Depository (Pte) Limited ('CDP') in Singapore
will receive their cash dividends in United States dollars
unless they elect, through CDP, to receive Singapore dollars.
Shareholders on the Singapore branch register who wish to
deposit their shares into the CDP system by the dividend record
date, being 25th August 2017, must submit the relevant documents
to M & C Services Private Limited, the Singapore branch registrar,
no later than 5.00 p.m. (local time) on 24th August 2017.
The Jardine Matheson Group
Jardine Matheson is a diversified Asian-based group with
unsurpassed experience in the region, having been founded in China
in 1832. It has a broad portfolio of market-leading businesses,
which represent a combination of cash generating activities and
long-term property assets and are closely aligned to the
increasingly prosperous consumers of the region. The Group's
businesses aim to produce sustainable returns by providing their
customers with high quality products and services.
Jardine Matheson operates principally in Greater China and
Southeast Asia, where its subsidiaries and affiliates benefit from
the support of the Group's extensive knowledge of the region and
its long-standing relationships. These companies are active in the
fields of motor vehicles and related operations, property
investment and development, food retailing, home furnishings,
engineering and construction, transport services, insurance
broking, restaurants, luxury hotels, financial services, heavy
equipment, mining and agribusiness.
Jardine Matheson holds interests directly in Jardine Pacific
(100%), Jardine Motors (100%) and Jardine Lloyd Thompson (42%),
while its 84% held Group holding company, Jardine Strategic, is
interested in Hongkong Land (50%), Dairy Farm (78%), Mandarin
Oriental (77%) and Jardine Cycle & Carriage (75%), which in
turn has a 50% shareholding in Astra. Jardine Strategic also has a
57% shareholding in Jardine Matheson.
Jardine Matheson Holdings Limited is incorporated in Bermuda and
has a standard listing on the London Stock Exchange, with secondary
listings in Bermuda and Singapore. Jardine Matheson Limited
operates from Hong Kong and provides management services to Group
companies.
- end -
For further information, please contact:
Jardine Matheson Limited
John Witt (852) 2843 8278
Brunswick Group Limited
Karin Wong (852) 3512 5077
As permitted by the Disclosure Guidance and Transparency Rules
of the Financial Conduct Authority in the United Kingdom, the
Company will not be posting a printed version of the Half-Yearly
Results announcement to shareholders. The Half-Yearly Results
announcement will remain available on the Company's website,
www.jardines.com, together with other Group announcements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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