TIDMJDS TIDMJAR
RNS Number : 9962M
Jardine Strategic 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 Strategic Holdings Limited
Half-Yearly Results for the Six Months ended 30th June 2017
Highlights
-- Underlying profit up 19%
-- Good performances from most Group companies
-- Strong financial position maintained
"Good trading is expected to continue in a number of the Group's
businesses in the remainder of the year, although 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 US$m 2016 Change
US$m %
----------------------------------------------------------------------- --------------------- -------------- ------
Gross revenue including 100% of
Jardine Matheson, associates and
joint ventures 38,072 34,569 +10
Revenue 15,606 14,334 +9
Underlying profit* attributable
to shareholders 787 664 +19
Profit attributable to shareholders 2,227 1,088 +105
US$ US$ %
----------------------------------------------------------------------- --------------------- -------------- ------
Underlying earnings per share* 1.35 1.12 +21
Earnings per share 3.83 1.84 +108
Net asset value per share 60.31 53.25 +13
----------------------------------------------------------------------- --------------------- -------------- ------
USc USc %
----------------------------------------------------------------------- --------------------- -------------- ------
Interim dividend per share 9.50 9.00 +6
----------------------------------------------------------------------- --------------------- -------------- ------
* 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 9
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 calculated on a market value
basis, details of which are set out in note 15 to the condensed
financial statements.
----------------------------------------------------------------------------------------------------------------------
The interim dividend of USc9.50 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 Strategic Holdings Limited
Half-Yearly Results for the Six Months ended 30th June 2017
Overview
Jardine Strategic benefited from good performances from many of
its businesses and produced strong growth in underlying profit for
the first half of 2017.
Results
Underlying profit for the period rose 19% to US$787 million, and
underlying earnings per share were up 21% at US$1.35. The revenue
of the Group for the first six months of 2017 was 9% higher at
US$15.6 billion, while revenue, including 100% of Jardine Matheson,
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 Matheson
saw improvements in its directly held businesses. 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$1,440 million, primarily US$111 million in respect of profits on
property disposals and US$1,311 million from revaluations of
investment properties, compared with a non-trading gain of US$424
million in the first half of 2016. Accordingly, the Group's profit
attributable to shareholders for the period was US$2,227 million
for the six months under review, compared with US$1,088 million in
2016.
The Board has declared an increased interim dividend of USc9.50
per share.
Business Developments
During the first half of the year the Company made additional
investments in mainland Chinese businesses in support of the
Group's overall development. In June, a 28% stake was acquired in
Hong Kong-listed Greatview, the third-largest supplier of aseptic
carton packaging globally, for a total cost of some US$246 million.
This interest is now being managed as part of the Jardine Pacific
portfolio of businesses within Jardine Matheson.
Following the redemption of convertible bonds issued by
Zhongsheng, the Company subscribed for additional shares increasing
its interest by some 5% to 20%. Zhongsheng, as well as Jardine
Motors, are currently benefiting from the strong trading conditions
in the new car market on the mainland.
Jardine Matheson held 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.
Outlook
Good trading is expected to continue in a number of the Group's
businesses in the remainder of the year, although 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 Matheson
Jardine Matheson produced an underlying profit for the first six
months of 2017 of US$765 million, an increase of 20% over the same
period in 2016. Non-trading items in the first half represented a
gain of US$1,313 million, giving a profit attributable to
shareholders of US$2,078 million for the six months under review,
compared with US$984 million in 2016. Shareholders' funds rose to
US$23.9 billion during the first six months of the year.
-- 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.
-- 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$5 million, mainly
due to lower revenue from its IT solutions business. Within Astra's
property activities, net income reflected improved development
earnings recognized under Indonesian accounting standards on its
Anandamaya Residences development, which will complete in 2018.
Jardine Strategic Holdings Limited
Consolidated Profit and Loss
Account
(unaudited)
Six months ended 30th June Year ended 31st December
2017 2016 2016
Underlying Underlying Underlying
business Non-trading business Non-trading business Non-trading
performance items Total performance items Total performance items Total
US$m US$m US$m US$m US$m US$m US$m US$m US$m
Revenue (note 2) 15,606 - 15,606 14,334 - 14,334 29,552 - 29,552
Net operating costs (note
3) (14,143) 13 (14,130) (13,055) (6) (13,061) (26,686) 23 (26,663)
Change in fair value
of investment
properties - 2,694 2,694 - 986 986 - 2,558 2,558
-------- ------------ -------- --------- ------------ -------- ----------- ------------ --------
Operating profit 1,463 2,707 4,170 1,279 980 2,259 2,866 2,581 5,447
Net financing charges
-------- ------------ -------- --------- ------------ -------- ----------- ------------ --------
- financing charges (156) - (156) (135) - (135) (279) - (279)
- financing income 83 - 83 68 - 68 144 - 144
(73) - (73) (67) - (67) (135) - (135)
Share of results of Jardine
Matheson
(note 4) 117 118 235 91 (7) 84 202 31 233
Share of results of associates
and joint
ventures (note 5)
* before change in fair value of
investment properties 499 9 508 329 - 329 589 35 624
* change in fair value of investment
properties - (56) (56) - (121) (121) - (56) (56)
499 (47) 452 329 (121) 208 589 (21) 568
Profit before tax 2,006 2,778 4,784 1,632 852 2,484 3,522 2,591 6,113
Tax (note 6) (343) (3) (346) (291) 1 (290) (605) (5) (610)
-------- ------------ -------- --------- ------------ -------- ----------- ------------ --------
Profit after tax 1,663 2,775 4,438 1,341 853 2,194 2,917 2,586 5,503
-------- ------------ -------- --------- ------------ -------- ----------- ------------ --------
Attributable to:
Shareholders of the Company
(notes 7 & 9) 787 1,440 2,227 664 424 1,088 1,438 1,303 2,741
Non-controlling interests 876 1,335 2,211 677 429 1,106 1,479 1,283 2,762
-------- ------------ -------- --------- ------------ -------- ----------- ------------ --------
1,663 2,775 4,438 1,341 853 2,194 2,917 2,586 5,503
-------- ------------ -------- --------- ------------ -------- ----------- ------------ --------
US$ US$ US$ US$ US$ US$
Earnings per share (note
8)
- basic 1.35 3.83 1.12 1.84 2.45 4.67
- diluted 1.35 3.83 1.12 1.84 2.45 4.67
-------- -------- --------- -------- ----------- --------
Jardine Strategic 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$m
Profit for the period 4,438 2,194 5,503
Other comprehensive income/(expense)
Items that will not be reclassified
to profit or loss:
--------
Remeasurements of defined benefit
plans (2) (4) 51
Net revaluation surplus before
transfer to investment properties
- intangible assets - 93 105
- tangible assets - 1 2
Tax on items that will not be
reclassified 1 1 (12)
(1) 91 146
Share of other comprehensive income/
(expense) of Jardine Matheson 6 (18) (28)
Share of other comprehensive expense
of associates and joint ventures (1) (3) (1)
--------- -------- ----------
4 70 117
Items that may be reclassified
subsequently to profit or loss:
Net exchange translation differences
- net gain/(loss) arising during
the period 131 380 (78)
Revaluation of other investments
--------- -------- ----------
- net gain/(loss) arising during
the period 96 (10) 111
- transfer to profit and loss (5) - -
91 (10) 111
Cash flow hedges
--------- -------- ----------
- net loss arising during the
period (55) (22) (173)
- transfer to profit and loss 7 17 186
(48) (5) 13
Tax relating to items that may
be reclassified 9 4 1
Share of other comprehensive income/
(expense) of Jardine Matheson 31 (31) (71)
Share of other comprehensive income/
(expense) of associates and joint
ventures 226 195 (149)
--------- -------- ----------
440 533 (173)
Other comprehensive income/(expense)
for the period, net of tax 444 603 (56)
--------- -------- ----------
Total comprehensive income for
the period 4,882 2,797 5,447
--------- -------- ----------
Attributable to:
Shareholders of the Company 2,520 1,282 2,623
Non-controlling interests 2,362 1,515 2,824
--------- -------- ----------
4,882 2,797 5,447
--------- -------- ----------
Jardine Strategic Holdings Limited
Consolidated Balance Sheet
(unaudited) At 31st
At 30th June December
2017 2016 2016
US$m US$m US$m
Assets
Intangible assets 3,070 2,608 2,661
Tangible assets 5,977 5,660 5,612
Investment properties 30,889 26,510 28,173
Bearer plants 512 528 497
Investment in Jardine Matheson 2,831 2,371 2,480
Associates and joint ventures 11,155 9,632 9,785
Other investments 1,243 1,099 1,328
Non-current debtors 3,210 2,905 2,916
Deferred tax assets 366 291 332
Non-current assets 59,253 51,604 53,784
------ ------------- ---------
Properties for sale 2,103 2,811 2,315
Stocks and work in progress 2,609 2,369 2,538
Current debtors 5,925 5,751 5,932
Current investments 50 47 65
Current tax assets 163 209 168
Bank balances and other liquid
funds
------ ------------- ---------
- non-financial services companies 5,064 4,412 4,874
- financial services companies 234 352 229
5,298 4,764 5,103
------ ------------- ---------
16,148 15,951 16,121
Non-current assets classified as
held for sale 3 - 3
------ ------------- ---------
Current assets 16,151 15,951 16,124
------ ------------- ---------
Total assets 75,404 67,555 69,908
------ ------------- ---------
Equity
Share capital 56 56 56
Share premium and capital reserves 1,009 1,064 1,020
Revenue and other reserves 29,378 25,687 26,984
Own shares held (1,928) (1,877) (1,918)
------- ------- -------
Shareholders' funds 28,515 24,930 26,142
Non-controlling interests 25,918 22,982 24,064
------- ------- -------
Total equity 54,433 47,912 50,206
------- ------- -------
Liabilities
Long-term borrowings
------- ------- -------
- non-financial services companies 4,962 5,516 5,118
- financial services companies 1,510 1,765 1,518
6,472 7,281 6,636
Deferred tax liabilities 546 449 470
Pension liabilities 293 320 273
Non-current creditors 501 432 436
Non-current provisions 139 138 129
------- ------- -------
Non-current liabilities 7,951 8,620 7,944
------- ------- -------
Current creditors 7,926 7,244 7,378
Current borrowings
------- ------- -------
- non-financial services companies 2,274 1,492 1,771
- financial services companies 2,410 1,937 2,265
4,684 3,429 4,036
Current tax liabilities 316 266 243
Current provisions 94 84 101
------- ------- -------
Current liabilities 13,020 11,023 11,758
------- ------- -------
Total liabilities 20,971 19,643 19,702
------- ------- -------
Total equity and liabilities 75,404 67,555 69,908
------- ------- -------
Jardine Strategic Holdings Limited
Consolidated Statement of Changes in Equity
Attributable
to Attributable
Revenue Contributed Asset Own shareholders to
Share Share Capital reserves surplus revaluation Hedging Exchange shares of the non-controlling Total
capital premium reserves US$m US$m 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
Six months ended
30th June 2017
(unaudited)
At 1st January
2017 56 816 204 28,498 304 262 (16) (2,064) (1,918) 26,142 24,064 50,206
Total
comprehensive
income - - - 2,308 - - (9) 221 - 2,520 2,362 4,882
Dividends paid
by the Company
(note 10) - - - (122) - - - - - (122) - (122)
Dividends paid
to
non-controlling
interests - - - - - - - - - - (515) (515)
Employee share
option schemes - - 7 - - - - - - 7 - 7
Scrip issued in
lieu of
dividends - - - 5 - - - - - 5 - 5
Increase in own
shares held - - - - - - - - (10) (10) - (10)
Subsidiaries
acquired - - - - - - - - - - 7 7
Change in
interests in
associates
and joint
ventures - - - (27) - - - - - (27) - (27)
Transfer - - (18) 18 - - - - - - - -
At 30th June
2017 56 816 193 30,680 304 262 (25) (1,843) (1,928) 28,515 25,918 54,433
------- ------- -------- --------- ------------ ----------- -------- -------- ------- ------------ --------------- ------
Six months ended
30th June 2016
(unaudited)
At 1st January
2016 56 984 194 25,850 304 222 (10) (1,814) (1,867) 23,919 21,943 45,862
Total
comprehensive
income - - - 1,051 - 35 (10) 206 - 1,282 1,515 2,797
Dividends paid
by the Company
(note 10) - - - (118) - - - - - (118) - (118)
Dividends paid
to
non-controlling
interests - - - - - - - - - - (495) (495)
Employee share
option schemes - - 7 - - - - - - 7 - 7
Scrip issued in
lieu of
dividends - - - 4 - - - - - 4 - 4
Repurchase of
shares - (120) - - - - - - - (120) - (120)
Increase in own
shares held - - - - - - - - (10) (10) - (10)
Capital
contribution
from
non-controlling
interests - - - - - - - - - - 76 76
Change in
interests in
subsidiaries - - - (33) - - - - - (33) (57) (90)
Change in
interests in
associates
and joint
ventures - - - (1) - - - - - (1) - (1)
Transfer - - (1) 1 - - - - - - - -
At 30th June
2016 56 864 200 26,754 304 257 (20) (1,608) (1,877) 24,930 22,982 47,912
------- ------- -------- --------- ------------ ----------- -------- -------- ------- ------------ --------------- ------
Year ended 31st
December 2016
At 1st January
2016 56 984 194 25,850 304 222 (10) (1,814) (1,867) 23,919 21,943 45,862
Total
comprehensive
income - - - 2,840 - 40 (6) (251) - 2,623 2,824 5,447
Dividends paid
by the Company - - - (171) - - - - - (171) - (171)
Dividends paid
to
non-controlling
interests - - - - - - - - - - (726) (726)
Unclaimed
dividends
forfeited - - - 1 - - - - - 1 - 1
Employee share
option schemes - - 13 - - - - - - 13 1 14
Scrip issued in
lieu of
dividends - - - 6 - - - - - 6 - 6
Repurchase of
shares - (168) - - - - - - - (168) - (168)
Increase in own
shares held - - - - - - - - (51) (51) - (51)
Capital
contribution
from
non-controlling
interests - - - - - - - - - - 83 83
Change in
interests in
subsidiaries - - - (29) - - - 1 - (28) (61) (89)
Change in
interests in
associates
and joint
ventures - - - (2) - - - - - (2) - (2)
Transfer - - (3) 3 - - - - - - - -
----- --- ------ --- --- ---- ------- ------- ------ ------ ------
At 31st December
2016 56 816 204 28,498 304 262 (16) (2,064) (1,918) 26,142 24,064 50,206
----- --- ------ --- --- ---- ------- ------- ------ ------ ------
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$2,227 million (2016: US$1,088
million) and net fair value gain on other investments of US$76
million (2016: net fair value loss of US$16 million). Cumulative
net fair value gain on other investments amounted to US$477
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$2,741 million and net fair value
gain on other investments of US$111 million. Cumulative net fair
value gain on other investments amounted to US$401 million.
Contributed surplus represents the excess in value of shares
acquired in consideration for the issue of the Company's shares,
over the nominal value of those shares issued. Under the Bye-Laws
of the Company, the contributed surplus is distributable.
Jardine Strategic Holdings Limited
Consolidated Cash Flow Statement
(unaudited)
Six months ended Year ended
30th June 31st December
2017 2016 2016
US$m US$m US$m
Operating activities
--------- -------- --------------
Operating profit 4,170 2,259 5,447
Change in fair value of investment properties (2,694) (986) (2,558)
Depreciation and amortization 445 436 884
Other non-cash items 124 117 185
Increase in working capital (28) (221) (242)
Interest received 77 67 135
Interest and other financing charges
paid (165) (132) (272)
Tax paid (291) (318) (660)
--------- -------- --------------
1,638 1,222 2,919
Dividends from associates and joint
ventures 458 287 496
Cash flows from operating activities 2,096 1,509 3,415
Investing activities
--------- -------- --------------
Purchase of subsidiaries (note 12(a)) (10) (1) (14)
Purchase of associates and joint ventures
(note 12(b)) (1,079) (221) (650)
Purchase of other investments (note
12(c)) (147) (68) (293)
Purchase of intangible assets (94) (64) (140)
Purchase of tangible assets (517) (460) (906)
Additions to investment properties (216) (135) (312)
Additions to bearer plants (19) (28) (56)
Advance to associates and joint ventures
(note 12(d)) (304) (3) (81)
Advance and repayment from associates
and joint ventures
(note12(e)) 232 33 175
Sale of associates and joint ventures 13 - 3
Redemption of convertible bonds in Zhongsheng 398 - -
Sale of other investments (note 12(f)) 117 33 122
Sale of intangible assets 1 3 8
Sale of tangible assets 9 12 33
Sale of investment properties 42 1 1
Cash flows from investing activities (1,574) (898) (2,110)
Financing activities
--------- -------- --------------
Repurchase of shares - (120) (168)
Capital contribution from non-controlling
interests - 76 77
Change in interests in subsidiaries
(note 12(g)) 15 (90) (104)
Drawdown of borrowings 8,552 7,438 13,503
Repayment of borrowings (8,252) (7,107) (12,967)
Dividends paid by the Company (228) (219) (317)
Dividends paid to non-controlling interests (520) (497) (731)
Cash flows from financing activities (433) (519) (707)
--------- -------- --------------
Net increase in cash and cash equivalents 89 92 598
Cash and cash equivalents at beginning
of period 5,091 4,568 4,568
Effect of exchange rate changes 64 48 (75)
--------- -------- --------------
Cash and cash equivalents at end of
period 5,244 4,708 5,091
--------- -------- --------------
Jardine Strategic 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 Matheson 6,615 6,353 - -
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 14,851 13,271 7,369 6,583
Intersegment transactions (131) (119) (2) (2)
----------------- ---------------- ----------- -----------
38,072 34,569 15,606 14,334
----------------- ---------------- ----------- -----------
Gross revenue comprises revenue together with 100% of revenue
from Jardine Matheson, associates and joint ventures.
3. Net Operating Costs
Six months ended 30th June
2017 2016
US$m US$m
Cost of sales (11,686) (10,709)
Other operating income 264 214
Selling and distribution costs (1,758) (1,704)
Administration expenses (889) (820)
Other operating expenses (61) (42)
-------- --------
(14,130) (13,061)
-------- --------
Net operating costs included the following
gains/(losses) from non-trading items:
Change in interests in associates and
joint ventures 13 (4)
Acquisition-related costs - (2)
13 (6)
-------- --------
4. Share of Results of Jardine Matheson
Six months ended 30th June
2017 2016
US$m US$m
By business:
Jardine Pacific 41 30
Jardine Motors 154 28
Jardine Lloyd Thompson 21 11
Corporate and other interests 19 15
----- -----
235 84
----- -----
Share of results of Jardine Matheson included
the
following gains/(losses) from non-trading
items:
Sale of property interests 111 -
Sale of businesses 2 (1)
Value added tax recovery in Jardine Motors 5 -
Litigation costs - (6)
----- -----
118 (7)
----- -----
Results are shown after tax and non-controlling interests in
Jardine Matheson.
5. Share of Results of Associates and Joint Ventures
Six months ended 30th June
2017 2016
US$m US$m
By business:
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
----- -----
452 208
----- -----
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 business 1 -
(47) (121)
----- -----
Results are shown after tax and non-controlling interests in the
associates and joint ventures.
6. Tax
Six months ended 30th June
2017 2016
US$m US$m
Tax charged to profit and loss is analyzed
as follows:
Current tax (369) (316)
Deferred tax 23 26
----- -----
(346) (290)
----- -----
Greater China (113) (117)
Southeast Asia (231) (171)
Rest of the world (2) (2)
----- -----
(346) (290)
----- -----
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 Jardine Matheson of US$21 million and
US$4 million (2016: charge of US$13 million and credit of US$7
million) are included in share of results of Jardine Matheson and
share of other comprehensive income of Jardine Matheson,
respectively.
Share of tax charge of associates and joint ventures of US$202
million and credit of US$1 million (2016: charge of US$87 million
and credit of US$2 million) are included in share of results of
associates and joint ventures and share of other comprehensive
income of associates and joint ventures, respectively.
7. Profit Attributable to Shareholders
Six months ended 30th June
2017 2016
US$m US$m
Operating segments:
Jardine Matheson 135 101
Hongkong Land 259 196
Dairy Farm 164 155
Mandarin Oriental 12 18
Jardine Cycle & Carriage 54 70
Astra 236 187
----- -----
860 727
Corporate and other interests (73) (63)
----- -----
Underlying profit attributable to shareholders* 787 664
Increase in fair value of investment properties 1,311 435
Other non-trading items 129 (11)
Profit attributable to shareholders 2,227 1,088
----- -----
* Underlying profit attributable to shareholders is the measure
of profit adopted by the Group in accordance with IFRS 8 'Operating
Segments'.
8. Earnings per Share
Basic earnings per share are calculated on profit attributable
to shareholders of US$2,227 million (2016: US$1,088 million) and on
the weighted average number of 581 million (2016: 591 million)
shares in issue during the period.
Diluted earnings per share are calculated on profit attributable
to shareholders of US$2,226 million (2016: US$1,088 million), which
is after adjusting for the effects of the conversion of dilutive
potential ordinary shares of Jardine Matheson, subsidiaries,
associates or joint ventures, and on the weighted average number of
581 million (2016: 591 million) shares in issue during the
period.
The weighted average number of shares is arrived at as
follows:
Ordinary shares
in millions
2017 2016
Weighted average number of shares in issue 1,108 1,113
Company's share of shares held by Jardine
Matheson (527) (522)
------------ ------------
Weighted average number of shares for
earnings per
share calculation 581 591
------------ ------------
Additional basic and diluted earnings per share are also
calculated based on underlying profit attributable to shareholders.
A reconciliation of earnings is set out below:
Six months ended 30th June
2017 2016
Basic Diluted Basic Diluted
earnings earnings earnings earnings
per share per share per share per share
US$m US$ US$ US$m US$ US$
Profit attributable
to shareholders 2,227 3.83 3.83 1,088 1.84 1.84
Non-trading items (note
9) (1,440) (424)
------- -----
Underlying profit
attributable
to shareholders 787 1.35 1.35 664 1.12 1.12
------- -----
9. 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 Matheson 118 (7)
Hongkong Land 1,304 435
Dairy Farm 1 -
Mandarin Oriental - (1)
Jardine Cycle & Carriage 6 (3)
Astra 11 -
1,440 424
----- -----
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 1,304 435
- other 7 -
Sale of property interests 111 -
Sale of businesses 3 (1)
Change in interests in associates and
joint ventures 10 (3)
Value added tax recovery in Jardine Motors 5 -
Litigation costs - (6)
Acquisition-related costs - (1)
1,440 424
----- -----
10. Dividends
Six months ended 30th June
2017 2016
US$m US$m
Final dividend in respect of 2016 of USc21.00
(2015: USc20.00) per share 233 223
Company's share of dividends paid on the
shares
held by Jardine Matheson (111) (105)
----- -----
122 118
----- -----
An interim dividend in respect of 2017 of USc9.50 (2016:
USc9.00) per share amounting to a total of US$105 million (2016:
US$100 million) is declared by the Board. The net amount after
deducting the Company's share of the dividends payable on the
shares held by Jardine Matheson of US$50 million (2016: US$47
million) will be accounted for as an appropriation of revenue
reserves in the year ending 31st December 2017.
11. Financial Instruments
Financial instruments by category
The fair values of financial assets and financial liabilities,
together with carrying amounts at 30th June 2017 and 31st December
2016 are as follows:
Other
Other financial
financial instruments
instruments fair value
Loans Derivatives at through Total
and used for Available- amortized profit carrying Fair
receivables hedging for-sale cost and loss amount value
US$m US$m US$m US$m US$m US$m US$m
30th June 2017
Assets
Other investments - - 1,289 - - 1,289 1,289
Debtors 7,795 59 - - 12 7,866 7,871
Bank balances and
other liquid funds 5,298 - - - - 5,298 5,298
----------- -----------
13,093 59 1,289 - 12 14,453 14,458
----------- ----------- ---------- ----------- ----------- -------- --------
Liabilities
Borrowings
(excluding finance
lease liabilities) - - - (11,106) - (11,106) (11,244)
Finance lease
Liabilities - - - (50) - (50) (50)
Trade and other
payables excluding
non-financial
liabilities - (58) - (6,551) (9) (6,618) (6,618)
----------- ----------- ---------- ----------- ----------- -------- --------
- (58) - (17,707) (9) (17,774) (17,912)
----------- ----------- ---------- ----------- ----------- -------- --------
31st December 2016
Assets
Other investments - - 1,386 - - 1,386 1,386
Debtors 7,592 119 - - 12 7,723 7,644
Bank balances and
other liquid funds 5,103 - - - - 5,103 5,103
----------- ----------- ---------- ----------- ----------- -------- --------
12,695 119 1,386 - 12 14,212 14,133
----------- ----------- ---------- ----------- ----------- -------- --------
Liabilities
Borrowings
(excluding
finance lease
liabilities) - - - (10,617) - (10,617) (10,702)
Finance lease
liabilities - - - (55) - (55) (55)
Trade and other
payables
excluding
non-financial
liabilities - (28) - (5,868) (9) (5,905) (5,905)
----------- ----------- ---------- ----------- ----------- -------- --------
- (28) - (16,540) (9) (16,577) (16,662)
----------- ----------- ---------- ----------- ----------- -------- --------
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 - 8 52 60
1,229 8 52 1,289
Derivative designated at
fair value
- through other comprehensive
income - 42 - 42
- through profit and loss - 17 - 17
---------- ------------- ------------ -----
1,229 67 52 1,348
---------- ------------- ------------ -----
Liabilities
Contingent consideration
payable - - (9) (9)
Derivative designated at
fair value
* through other comprehensive income - (54) - (54)
- through profit and loss - (4) - (4)
- (58) (9) (67)
---------- ------------- ------------ -----
31st December 2016
Assets
Available-for-sale financial
assets
---------- ------------- ------------ -----
- listed securities 1,327 - - 1,327
- unlisted investments - 8 51 59
1,327 8 51 1,386
Derivative designated at
fair value
- through other comprehensive
income - 102 - 102
- through profit and loss - 17 - 17
---------- ------------- ------------ -----
1,327 127 51 1,505
---------- ------------- ------------ -----
Liabilities
Contingent consideration
payable - - (9) (9)
Derivative designated at
fair value
- through other comprehensive
income - (20) - (20)
- through profit and loss - (8) - (8)
---------- ------------- ------------ -----
- (28) (9) (37)
---------- ------------- ------------ -----
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 51 (9)
Exchange differences 1 -
At 30th June 2017 52 (9)
------------------ --------------
At 1st January 2016 50 (27)
Exchange differences (1) -
Additions 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 51 (9)
------------------ --------------
The contingent consideration payable 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.
12. 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 149 -
Associates and joint ventures 70 -
Deferred tax assets 12 -
Current assets 4 -
Deferred tax liabilities (86) -
Current liabilities (117) -
Long-term borrowings (35) -
Other non-current liabilities (1) -
Fair value of identifiable net assets
acquired 303 -
Adjustment for non-controlling interests (7) -
------ ------
Total consideration 296 -
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 10 1
------ ------
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 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.
Loss after tax since acquisition in respect of subsidiaries
acquired during the six months ended 30th June 2017 amounted to
US$6 million, with no revenue generated. Had the acquisitions
occurred on 1st January 2017, consolidated revenue would remain
unchanged at US$15,606 million and consolidated profit after tax
for the six months ended 30th June 2017 would have been US$4,414
million.
(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 the Company'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 for 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
- Mandarin Oriental - (67)
- Jardine Cycle & Carriage - (23)
Decrease in attributable interests 15 -
----- -----
15 (90)
----- -----
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%.
13. Capital Commitments and Contingent Liabilities
Total capital commitments at 30th June 2017 and 31st December
2016 amounted to US$2,097 million and US$1,942 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.
14. Related Party Transactions
In accordance with the Bye-laws of the Company, Jardine Matheson
Limited, a wholly-owned subsidiary of Jardine Matheson Holdings
Limited ('Jardine Matheson'), has been appointed General Manager of
the Company under a General Manager Agreement. With effect from 1st
January 2008, Jardine Matheson Limited has sub-delegated certain of
its responsibilities under the agreement to a fellow subsidiary.
Total fees payable for services provided to the Company for the six
months ended 30th June 2017 amounted to US$71 million (2016: US$60
million).
In the normal course of business the Group undertakes a variety
of transactions with Jardine Matheson, and 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$480 million).
There were no other related party transactions that might be
considered to have a material effect on the financial position or
performance of the Group that were entered into or changed during
the first six months of the current financial year.
Amounts of outstanding balances with Jardine Matheson,
associates and joint ventures are included in debtors and
creditors, as appropriate.
15. Market Value Basis Net Assets
At 30th At 31st
June December
2017 2016
US$m US$m
Jardine Matheson 4,463 4,955
Hongkong Land 8,660 7,448
Dairy Farm 8,271 7,547
Mandarin Oriental 1,944 1,239
Jardine Cycle & Carriage 9,541 8,458
Other holdings 1,722 1,213
------- ---------
34,601 30,860
Jardine Strategic Corporate 302 98
------- ---------
34,903 30,958
------- ---------
US$ US$
Net asset value per share 60.31 53.25
------- ---------
'Market value basis net assets' are calculated based on the
market price of the Company's holdings for listed companies, with
the exception of the holding in Jardine Matheson which has been
calculated by reference to the market value of US$26,517 million
(2016: US$22,433 million) less the Company's share of the market
value of Jardine Matheson's interest in the Company. For unlisted
companies a Directors' valuation has been used.
Net asset value per share is calculated on 'market value basis
net assets' of US$34,903 million (2016: US$30,958 million) and on
579 million (2016: 581 million) shares outstanding at the period
end which excludes the Company's share of the shares held by
Jardine Matheson of 529 million (2016: 526 million) shares.
Jardine Strategic 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 118 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
Y.K. Pang
Directors
The interim dividend of USc9.50 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.
Jardine Strategic
Jardine Strategic is a holding company which takes long-term
strategic investments in multinational businesses, particularly
those with an Asian focus, and in other high quality companies with
existing or potential links with the Group. Its principal
attributable interests are in Jardine Matheson 57%, Hongkong Land
50%, Dairy Farm 78%, Mandarin Oriental 77% and Jardine Cycle &
Carriage 75%, which in turn has a 50% interest in Astra. It also
has minority interests in Zhongsheng and Greatview Aseptic
Packaging. Jardine Strategic is 84% held by Jardine Matheson.
The Group companies operate 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 Strategic Holdings Limited is incorporated in Bermuda
and has a standard listing on the London Stock Exchange, with
secondary listings in Bermuda and Singapore. The Company's
interests are managed from Hong Kong by Jardine Matheson
Limited.
- 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
IR GUGDICUGBGRX
(END) Dow Jones Newswires
August 04, 2017 05:22 ET (09:22 GMT)
Jardine Strategic Holdin... (LSE:88EI)
Historical Stock Chart
From Sep 2024 to Oct 2024
Jardine Strategic Holdin... (LSE:88EI)
Historical Stock Chart
From Oct 2023 to Oct 2024