7th March 2024
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
2023 Preliminary Announcement of Results
Solid Performance In Challenging Market
Conditions
Highlights
·
Underlying profit up 5% to US$1.66 billion (+7%
at CER°)
·
Record performance in South East Asia, driven by
Astra
·
Strong recoveries at DFI Retail and Mandarin
Oriental
·
Significant capital investments at Astra to drive
future growth
·
Full year dividend up 5% to US$2.25
"Jardines
delivered a very solid performance in 2023, benefitting from its
diversified portfolio, with results above pre-pandemic levels.
Challenging conditions on the Chinese mainland and in Vietnam
adversely impacted Zhongsheng, Hongkong Land and THACO.
Astra, however, delivered a record performance in South East Asia
and both DFI Retail and Mandarin Oriental drove strong
recoveries.
I want to
thank our colleagues across the Group for their unwavering
commitment to their customers and businesses.
The Group
anticipates a challenging year ahead, as a result of ongoing
economic headwinds in key markets, but with new leadership in place
across several Group companies, and an effective long-term
strategy, we are optimistic about the future and believe that we
are well-positioned to take advantage of opportunities for mid- and
long-term growth."
Ben Keswick, Executive Chairman
Results
summary
Year ended 31st
December
|
|
|
|
2023
US$m
|
2022
US$m
restated Ω
|
Change
%
|
Change at
CER°
%
|
|
|
|
|
|
Revenue
|
36,049
|
37,496
|
-4
|
|
Underlying profit* before tax
|
5,034
|
4,930
|
+2
|
|
Underlying profit* attributable to
shareholders
|
1,661
|
1,584
|
+5
|
+7
|
Profit attributable to shareholders
|
686
|
354
|
+94
|
|
Shareholders' funds
|
29,010
|
28,850
|
+1
|
|
|
US$
|
US$
|
|
|
Underlying earnings* per share
|
5.74
|
5.49
|
+5
|
+6
|
Earnings per share
|
2.37
|
1.22
|
+94
|
|
Dividends per share
|
2.25
|
2.15
|
+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 40 to the financial statements. Management considers
this to be a key measure which provides additional information to
enhance understanding of the Group's underlying business
performance.
Ω The 2022 financials
have been restated due to changes in accounting policies upon
adoption of IFRS 17 'Insurance Contracts', as set out in note 1 to
the financial statements.
° CER means Constant
Exchange Rates
|
|
|
|
|
|
| |
The final dividend of US$1.65 per
share will be payable on 15th May 2024, subject to approval at the
Annual General Meeting to be held on 8th May 2024, to shareholders
on the register of members at the close of business on 22nd March
2024 and will be available in cash with a scrip
alternative.
Jardine Matheson Holdings Limited (the
'Company')
2023 Preliminary Announcement of Results
Chairman's Statement
2023 Overview
2023 saw the Group's underlying profit rise to
a new high, as many of our businesses benefitted from the
post-pandemic reopening of markets, particularly in the first half
of the year. The Group's diversified portfolio continued to
generate strong cash flows, supporting a strong balance sheet and
creating a solid foundation for future growth. Full details
of the business's performance, and significant developments during
the year, are provided in the Group Managing Director's
Review.
The Board is recommending an increased final
dividend of US$1.65 per share, which produces a full-year dividend
of US$2.25 per share, up 5% from the prior year.
Governance
Our approach to governance reflects what the
Board believes is most appropriate for the Group's unique
shareholding structure, size and its operations in Asia.
However, as our environment and the Group evolves, we continue to
review its effectiveness on an ongoing basis. In the last
year, we have brought greater diversity and sectoral
expertise to the Boards of both Jardine Matheson and our listed
subsidiaries, with multiple new executive and independent
non-executive appointments.
At JMH, Janine Feng and Keyu Jin joined the
Company's Board on 5th May 2023 and 31st January 2024 respectively,
as independent non-executive directors. From 1st April 2024,
the Board will comprise 50% independent non-executive
directors.
Anthony Nightingale retired from the Board on
31st January 2024, and Y.K. Pang and David Hsu will step down from
the Board on 31st March 2024. Y.K. will remain as a Senior
Adviser of the Company. I would like to thank
Anthony, Y.K. and David for their contributions to the Board and
the wider Group over many years.
Janine Feng also joined the Audit Committee on
5th May 2023 and, following Michael Wu's appointment to the
Committee in March 2023, in place of Adam Keswick, who stood down
with effect from the same date, the Board considers that the Audit
Committee now comprises only independent non-executive
directors.
Following recent changes, the audit committees
of each of our listed subsidiary Boards now have a majority of
independent members and are chaired by an independent non-executive
director.
Sustainability
As a long-term business, sustainability is at the
forefront of our business practices and I am pleased to say we have
made significant strides in progressing our agenda. The
culture within the Group is fast becoming one where sustainability
is seen as a business opportunity and an integral part of our
day-to-day business lives.
We are increasingly focussed on the three main
pillars of our sustainability strategy: Leading Climate Action,
Driving Responsible Consumption and Shaping Social Inclusion, and I
am really pleased that the progress we have made in these areas has
been reflected in our improved ESG ratings.
Good business is sustainable business, and with our
focussed approach we believe the future growth of the Company will
also benefit the communities in which we invest. I am proud
to say that sustainability is now something that is embedded as a
core element of our strategy, and all future investments will take
account of it as a key part of the decision-making process.
I continue to chair our Sustainability Leadership
Council, which includes all Group CEOs, and together we will
continue to ensure that Jardines maximises the long-term business
opportunities that a consistent and integrated sustainability
programme should produce.
Conclusion
Jardines delivered a very solid performance in
2023 as the Group benefitted from its diversified portfolio, with
results above pre-pandemic levels. Our two large auto
associates, Zhongsheng and THACO, were significantly impacted by
tough market conditions in the Chinese mainland and Vietnam
respectively. Hongkong Land was also impacted by the downturn
in the Chinese property sector. Astra, however, delivered a
record performance and both DFI Retail and Mandarin Oriental drove
strong recoveries.
The Group enters 2024 facing continued
challenging market conditions in key segments in China and Vietnam,
as well as lower market prices for a number of Astra's key
commodity outputs in Indonesia. However, we remain confident
in our long-term strategy and will continue to create opportunities
to deliver growth and long-term value, benefitting from our
diversified portfolio.
Ben Keswick
Executive Chairman
Group Managing Director's Review
The Group performed well in 2023 and, despite
facing increasing headwinds in the second half of the year,
achieved a new record level of profit.
We remain focussed on addressing the
short-term challenges our businesses face from local and global
economic pressures. As the pace of change increases, we are
focussed on advancing our strategic priorities with urgency, as
outlined below.
Enhancing Leadership and
Entrepreneurialism
In the last year, the Group has made several
significant senior appointments to enhance leadership and drive
future growth, including the appointment of new chief executives at
DFI Retail, Mandarin Oriental and Hongkong Land.
Scott Price succeeded Ian McLeod as Group
Chief Executive of DFI Retail with effect from 1st August
2023. Scott is an experienced senior business
executive with 25 years' international experience, mostly in Asia,
spanning the retail, logistics and consumer packaged goods
sectors.
Since joining DFI Retail, Scott has visited
all its formats and markets to meet colleagues and learn about the
group's business and customers. He has introduced a new
strategic framework, which will support the group's capital
allocation priorities and growth plans over the coming three to
five years. The new framework is centred on putting the
customer first - evolving the business at the same pace as
customers' changing shopping behaviours; focussing on the group's
people - embedding core values throughout the group, speeding up
decision making and improving diversity, equity and inclusion to
ensure local relevancy of decision-making to customers; and driving
improved shareholder returns - through a disciplined capital and
resource allocation approach.
Laurent Kleitman succeeded James Riley as
Group Chief Executive of Mandarin Oriental with effect from 1st
September 2023. Laurent joined the group from LVMH, where he
was President and CEO of Parfums Christian Dior, and brings many
years' experience in building iconic consumer brands across the
beauty and broader FMCG sectors.
In his first few months at Mandarin Oriental,
Laurent has visited the group's properties around the world, met
with owners and partners and spent time listening to and learning
from the group's many colleagues. Going forward, he aims to
scale up the management business, further elevate the brand to
become the reference point in luxury hospitality and enrich the
group's service proposition to guests and owners.
In November 2023, we announced
that Michael Smith will succeed Robert Wong as the new Chief
Executive of Hongkong Land, effective 1st April 2024. Michael
brings 30 years of real estate, capital markets and investment
banking experience. He was most recently Regional Chief
Executive Officer of Europe and the US at Mapletree Investments, a
global real estate development, investment, capital and property
management company. Michael grew Mapletree Investment's
Europe and US businesses through his successful build-out of an
entrepreneurial and high-performance
organisation.
Elton Chan, currently the Chief
Executive of Jardine Schindler Group and a non-Executive Director
of Zhongsheng, will succeed Y.K. Pang as Chief
Executive of the Jardine Pacific group of companies,
with effect from 1st April 2024. Prior to his current role at
Jardine Schindler Group, Elton was Managing Director of Zung Fu
China. He joined Jardines in 2004 and has worked in a range
of senior management roles across the Group.
I would like to thank Ian, James,
Robert and Y.K. for their significant contributions to the
Group.
A crucial part of building an entrepreneurial
culture is finding, developing and keeping the right leadership
talent, and this is a high priority for the Group and its
companies. We also recognise the importance of having the
right management structure to support the future development of our
portfolio and identify new growth areas.
During the year, we have continued to invest
in developing our leaders and giving them opportunities to advance
their careers within different businesses across the Group, with
multiple senior management progressions happening during the
period.
We are also focussed on assessing and
developing the next generation of leaders across our businesses. We
offer colleagues the training and support they need to deal with
the challenges and opportunities they face, both in the near- and
the long-term. We supplement our talent planning with
Group-wide leadership development programmes, co-designed with
world-class institutions including IMD and INSEAD.
Jardines also continues to build a diverse and
inclusive culture where anyone can succeed. Our strategy
includes a five-year Inclusion, Equity and Diversity target, with
an initial focus on gender representation. In addition, each
Group business has set its own targets for improving Inclusion,
Equity and Diversity in the workplace.
Evolving the Group Portfolio
We see the evolution of the Group's portfolio
as crucial to ensuring the long-term growth and sustainability of
our business. We allocate capital towards strategic growth
initiatives, both at the Group level and within our Group
companies, while divesting non-strategic and lower-yielding
assets.
Our diversified presence in China and South
East Asia, as well as our balanced portfolio across sectors, has
enabled us to perform well even in challenging market
conditions. We continue to focus on further strengthening our
position in the high-potential markets of Asia and in those
industries where we can establish a leading position, to create
long-term value and ensure sustainable growth.
Our primary goal is to expand our operations
in areas with the greatest potential for future growth, including a
number of emerging ASEAN markets. We aim to align ourselves
with key trends in these markets, such as continuing urbanisation
and the expanding middle class. We are actively seeking
growth opportunities in markets like Indonesia and Vietnam, while
also developing our business interests in China.
We also recognise the continuing growth
opportunities in our established markets, such as Hong Kong and
Singapore, which provide a stable foundation and strong cash
flow.
Our capital allocation strategy prioritises
organic investment in our portfolio to drive long-term growth and
returns, while also aiming to increase dividends over time.
We then focus on investing in new business opportunities and
carrying out share buybacks in our companies as appropriate.
Our strategy is supported by a strong balance sheet, and we
are increasingly focussed on ensuring that our investment
opportunities align with our sustainability goals.
During 2023 and, as we enter 2024, we have
continued to progress the simplification of the Group's portfolio
and lay the foundations for the next stage of its growth. In
March 2023, we completed the sale of our Motors business in the
United Kingdom for US$402 million. In September 2023, the
Group completed the sale of its 28.22% stake in Hong Kong-listed
Greatview Aseptic Packaging Company for US$128 million. In
March 2024, the Group completed the sale of its 50% stake in
Jardine Aviation Services Group.
In March 2023, DFI Retail sold its Malaysian
Grocery Retail business and it completed the sale of several
associated properties over the course of the second half of the
year.
In line with Mandarin Oriental's strategy for
driving future growth, primarily through developing its management
business and realising capital, in 2023 the group sold its Jakarta
hotel to Astra and signed an option to sell its Paris hotel, in
each case retaining the management contract.
Against the backdrop of challenging market
conditions in China, the Group continued to make strategic
investments in South East Asia.
Astra continued its diversification into
non-coal assets, as part of its commitment to a just transition,
with United Tractors' acquisition of interests in two nickel mining
and processing businesses: the acquisition of a 90% effective share
ownership of PT Stargate Pasific Resources and PT Stargate Mineral
Asia, for total consideration of US$319 million; and the
acquisition of a 19.99% interest in Nickel Industries, for
US$616 million.
Astra took further steps to deliver its
commitment to transition away from coal and into renewables through
the acquisition by its subsidiary United Tractors, in December
2023, of a 49.6% interest for US$52 million in Supreme
Energy Sriwijaya, which owns an operating geothermal project in
South Sumatera with a total existing capacity of 98 MW.
Astra progressed its healthcare strategy by
investing an additional US$100 million in Halodoc, a leading
digital health ecosystem platform in Indonesia, bringing its
ownership to 21%.
The Group's commitment to South East Asia was
reinforced with Jardine Cycle & Carriage's ('JC&C')
investment of a further US$350 million in Truong Hai Group
Corporation ('THACO') in Vietnam, through subscription for a
five-year convertible bond. JC&C also increased its interest
in Refrigeration Engineering Electrical
('REE') from 33.6% to 34.9% through a series of
on-market purchases, for around US$14 million. In Singapore,
JC&C completed a sale and leaseback arrangement of its
properties for US$225 million.
The Company repurchased 4.4
million of its own shares for cancellation in 2023 for US$209
million, primarily in order to cancel the impact of scrip issues
during the year on overall share count and EPS. The Group
also acquired 5.8 million shares in JC&C for US$136 million
during the year.
These examples illustrate the focus of the
Group on implementing its capital allocation and portfolio strategy
and on seizing opportunities when they arise to optimise our
portfolio and prepare the Group for future growth.
Driving
Innovation and Operational Excellence
The Group continues to focus on delivering
operational excellence in both its existing and new businesses,
and 2023 saw strong progress in driving
greater efficiency and productivity. Many of the Group's
businesses progressed improvement initiatives in the year,
with HACTL increasing its capacity to handle pallets
by 30% by enhancing its use of robotics, as well as introducing
automation more generally to increase efficiency.
DFI's transformation programme also continued to deliver real
improvements in operating metrics across its banners.
The Group is progressing its implementation of an in-house
Global Business Services function to support the Group's
businesses, while Mandarin Oriental has
made encouraging progress in driving operational efficiency through
modernising its systems and processes required to support evolving
business needs.
The increased efficiencies which are being
delivered across our businesses help them demonstrate adaptability
and agility in addressing the challenges they face in delivering
future growth.
The Group has continued to focus on driving
innovation as a key strategic priority. In November
2023, Astra launched Bank
Saqu, a digital banking service with a
focus on small business owners and small entrepreneurs in
Indonesia. In the automotive space, Astra
acquired the leading online used car platform in Indonesia.
This has been integrated with Astra's existing used car business to
create a preeminent position in both online/offline used car sales
as the market grows. In June 2023,
JC&C announced a used car and aftersales partnership with
Carro, a leading online auto platform.
Mandarin Oriental is implementing
its Guest Experience Programme, which will greatly improve the
group's ability to recognise, understand and engage guests. A
redesign of Fans of M.O.
will enhance Mandarin Oriental's ability to attract and retain
guests. Mandarin Oriental is also establishing a bespoke
relationship management service, to build brand-level loyalty with
ultra-high net worth guests.
We continue to seek new inorganic
growth opportunities in the digital economy, emerging industries
and new geographies. This is well illustrated by
Astra's partnership with Equinix, one of the world's largest
digital infrastructure companies, to develop data centres in
Indonesia, as well as United Tractors'
acquisition of interests in Supreme Energy
Sriwijaya, Nickel Industries and Stargate.
Progressing Sustainability
Sustainability remains a key
strategic priority for the Group. In 2023, we continued to
leverage and build on the work our Group companies are doing on
sustainability, to create an aligned, focussed approach which
maximises the impact Jardines has in its communities and on the
environment, and enables us to create real scale in what we
do.
In Leading Climate Action, we continue to
build momentum on our net-zero strategy and our businesses have set
decarbonisation targets to align with the trajectory needed to
limit global warming to 1.5oC. All our businesses
have also developed decarbonisation pathways to achieve their
targets for reducing Scope 1 and 2 emissions. We are working
towards understanding and reducing our Scope 3 emissions over
time.
In Driving Responsible Consumption, most
businesses have identified their material waste streams and set
individual waste reduction/diversion targets, and we are looking
for synergies and cooperation opportunities between our businesses
on circular solutions. We are also building up expertise to
understand our dependencies and impacts on biodiversity, so we can
adopt industry-leading practices for biodiversity
management.
The Group continues to operate
some businesses in Indonesia which are the focus of stakeholders on
environmental and biodiversity-related issues, but we believe that
our businesses are taking appropriate and extensive steps to
protect biodiversity and the environment, while at the same time
supporting the communities where they operate.
In relation to Shaping Social
Inclusion, we are prioritising the
promotion of access to quality education and efforts
to create greater awareness of mental health.
Summary of Performance
The Group delivered a good performance in
2023, with a 5% increase (+7% at Constant Exchange Rates ('CER'))
in underlying profit to US$1,661 million, and 5% growth (+6% at
CER) in underlying earnings per share to
US$5.74.
Growth was primarily driven by
strong results from Astra and significantly improved contributions
from DFI Retail and Mandarin Oriental. Growth continued in the
second half in all three businesses, but saw a marked slowdown as
market conditions weakened (and prior year comparables became
tougher). There was a significantly lower contribution in
2023 from Zhongsheng and contributions from JC&C's other
businesses (ex-Astra), Hongkong Land and Jardine Pacific were also
lower. Further details of the individual businesses are
provided below.
Net non-trading items were negative. The net
non-trading losses in 2023 consisted primarily of the Group's fair
value losses arising from the revaluation of the Group's investment
properties portfolio of US$1,066 million and impairment of goodwill
of US$172 million, offset by gain on sale of property interests of
US$105 million and the US$101 million share of Zhongsheng's 2022
second half profit (resulting from a change in accounting policy as
explained under the Zhongsheng section below).
Cashflow remained strong both at Group and parent
company level. The Group's cash flows from operating
activities for the year was US$4.6 billion and free cashflow at
parent company[1] was US$778 million,
amply covering the Company's external dividend payments by
1.7x. The Group's balance sheet remains strong with
gearing of 15%, slightly up from 13% at the end of 2022, despite
significant capex and enhanced external dividend payments at Astra
during the year.
The Group continued to focus during 2023 on making
organic and strategic investments to sustain the business and drive
future growth. The Group's organic capital expenditure in
2023, including expenditure on properties for sale, was US$3.4
billion (2022: US$3.8 billion), and strategic investments added a
further US$1.8 billion (2022: US$1.5 billion) to capital
expenditure in 2023. Additional capital investment within the
Group's associates and joint ventures was over US$5.2 billion
(2022: US$4.3 billion). The Group continues to invest for the
long-term and ensure that its businesses have the resources to
drive future growth.
These results demonstrate, once again, the
value of our diversified portfolio, enabling Jardines to produce a
resilient profit and cash performance, despite challenging
conditions in a number of our sectors and markets.
The strong performance of the Group's
businesses in Indonesia, together with the challenges faced by our
businesses in Hong Kong and on the Chinese mainland, led to 56% of
the Group's profit for the period coming from South East Asia and
37% from China.
Individual Business Performance
Certain financial
information of the Group's listed subsidiaries presented and
referred to below represents the financial information of each
respective business of the Group as reported within their own
Annual Report ('100% basis'). References to profit attributable to
shareholders is therefore the performance attributable to the
shareholders of the respective business, which we believe provides
the reader a better understanding of the relevant listed Group
subsidiaries. The Jardine Matheson Group's attributable interest in
each business is disclosed, where relevant, within the segmental
information in Note 2 of the financial statements.
Jardine
Pacific
The Jardine Pacific group of companies reported
underlying net profit of US$164 million, 10% lower than 2022. There
were good performances by most businesses, although the group's
consumer businesses continued to be impacted by weaker consumer
sentiment in Hong Kong. The lower underlying net profit was
primarily due to the absence of government support and subsidies
received last year (US$28 million), as well as the net loss
incurred by Jardine Restaurants.
There was significant focus in the year across
the group's businesses on driving operational improvements, and the
benefits are now starting to be seen in better business
performance.
|
Group
Interest
|
Group Share of Underlying
profit
|
Change
|
|
%
|
2023
US$m
|
2022
US$m
|
%
|
Analysis of Jardine
Pacific's contribution:
|
|
|
|
|
Jardine Schindler
|
50
|
42
|
36
|
+16
|
JEC
|
100
|
57
|
53
|
+6
|
Gammon
|
50
|
45
|
39
|
+15
|
Transport Services
|
42-50
|
30
|
23
|
+32
|
Jardine Restaurants
|
100
|
(15)
|
19
|
n/a
|
Zung Fu Hong Kong
|
100
|
10
|
12
|
-18
|
Corporate and other interests
|
|
(5)
|
-
|
|
TOTAL
|
|
164
|
182
|
-10
|
Within Jardine Pacific's B2B businesses,
Jardine Schindler produced a good
performance with higher sales, although gross margins were impacted
by mix. A stable contribution from the Existing Installation
business helped offset the challenging New Installation market.
JEC performed satisfactorily and its Hong
Kong businesses reported solid performances. There were
improvements from its regional businesses in Thailand and
Singapore, and its order book remained strong.
Gammon reported higher
profits, reflecting higher sales. Margins remained under
pressure due to the timing of projects, but good cost control and
higher financing income helped drive a better performance. Gammon's
ongoing operational improvement projects continue to generate
encouraging results.
In Transport Services, there was a satisfactory
performance from HACTL, despite lower
cargo volume being handled and higher financing costs.
Jardine Aviation reported a net
profit for the year, benefitting from higher flight volumes as the
recovery in air travel continued, as well as improved pricing from
contract renewals. In March 2024, the group
completed the sale of its 50% stake in Jardine
Aviation. HACTL continues to face labour
shortages.
The group's consumer-facing businesses faced
challenges. Jardine Restaurants
incurred a net loss, with macro challenges seen across all markets
and the absence of government support received in Hong Kong last
year. In Hong Kong, weekend traffic has been impacted by the
trend of Hong Kong locals increasingly visiting Shenzhen, and both
Pizza Hut and KFC Hong Kong reported losses. The Taiwan operations
performed well despite intensified competition, while the Vietnam
businesses were impacted by the slow recovery in the Vietnamese
economy.
Zung Fu Hong Kong reported
a lower profit year on year. Despite higher Mercedes
passenger cars deliveries and better After Sales performance, the
overall contribution from Mercedes fell, driven by lower margins
and commercial vehicles sales. Hyundai experienced supply
constraints which impacted the number of car deliveries and margin.
The business also incurred start-up costs from its newly acquired
smart and Denza car
distributorships.
Jardine Pacific reported a net non-trading gain of
US$23 million in the year, compared to a net non-trading loss of
US$305 million in 2022. The 2022 non-trading loss included a
decrease in the fair value of the group's investment properties and
impairment of the group's investments.
Zhongsheng
The Group received a substantially lower
underlying contribution of US$139 million from its 21% interest in
Zhongsheng in 2023 (2022 reported contribution from Zhongsheng was
US$263 million), as its new car business faced a
challenging market environment for new luxury vehicle sales volumes
and margins during the year, due to China's EV transition and
intense auto market competition.
As noted last year, we have changed our
accounting for Zhongsheng's results in 2023 to reflect an estimate
of their results for the second half of the year, based on recent
external analysts' forecasts. We believe this is a better way
to ensure the Group's financial statements reflect current progress
and developments at Zhongsheng, amid the fast-moving automotive
market on the Chinese mainland. This change has been adopted
prospectively from 1st January 2023 and, as such, the Group's share
of Zhongsheng's estimated 2023 results is presented as underlying
profit. Whereas, for the 2022 contribution from Zhongsheng,
the Group reported its results with six months in arrears.
Had the current year accounting policy also applied in 2022, the
drop in underlying contribution from Zhengsheng recognised in 2023
would have been approximately 40% smaller. The Group's share
of its 2022 second half results is included as a non-trading item,
so as not to distort the current year's underlying
performance.
Despite the significant reduction in Zhongsheng's 2023 contribution and continuing
challenging market conditions, we believe that Zhongsheng has
strong market insight, deep relationships in the Chinese mainland
premium vehicle segment, and superb capabilities to execute its
well-developed strategy focussing on aftermarket auto services and
used car business, which will deliver long-term value for the
Group.
Hongkong
Land
Hongkong Land's underlying performance during
the year was impacted by lower profits from Development Properties,
which offset improved results from Investment Properties.
Challenging market conditions impacted total contributions from
Development Properties business on the Chinese mainland.
Profits from the group's Investment Properties increased, mainly
due to an improved performance from its luxury retail and Singapore
office portfolios, offsetting reduced contributions from the Hong
Kong office portfolio.
Underlying profit attributable to shareholders
fell by 5% to US$734 million. The loss attributable to shareholders
was US$582 million after including net non-cash losses of US$1,317
million arising primarily from the revaluation of the group's
Investment Properties portfolio. This compares to a profit
attributable to shareholders of US$203 million in 2022, which
included net non-cash losses of US$573 million from lower property
revaluations. In both years, the net negative revaluation
movements principally arose in Hong Kong, where there was a gradual
decrease in valuations of the group's prime office portfolio,
primarily due to a decline in market rents and a mild expansion of
capitalisation rates.
Investment Properties
In Hong Kong, the
Central office market remained weak, reflecting subdued capital
market sentiment, although the group's Central office portfolio
remained resilient and continued to outperform the overall
market. At the end of 2023, physical vacancy was 7.4%, while
on a committed basis it was 6.8%, compared with 4.7% at the end of
2022. Vacancy was, however, well below the 9.9% vacancy for
the Central Grade A office market overall. Average office
rents were HK$106 per sq. ft. in 2023, decreasing from HK$111 per
sq. ft. in the prior year due to negative rental
reversions.
The group's LANDMARK retail portfolio saw a
steady recovery in tenant sales and footfall in 2023, following the
relaxation of pandemic restrictions and the reopening of Hong
Kong's borders. Average retail rents increased from HK$177
per sq. ft. in 2022 to HK$203 per sq. ft. in 2023, mainly due to
mildly positive rental reversions and the removal of temporary rent
relief. Vacancy, on both a physical and committed basis,
remained low at 1.5%.
In Singapore, the group's office portfolio
continued to perform well. Average office rents increased to
S$10.9 per sq. ft. in 2023, from S$10.6 per sq. ft. in 2022.
On a committed basis, vacancy in the group's office portfolio
remained low at 0.9%, compared with 2.2% at the end of
2022.
Contributions from our luxury retail portfolio
in Beijing and Macau were higher than the prior year, as footfall
and retail sales improved following the lifting of pandemic
restrictions.
In Shanghai, work continued to progress well
on the West Bund development, the group's 43%-owned prime 1.1
million sq. m. mixed-use development. The project's first
phase, consisting of a luxury residential tower and serviced
apartments, completed construction at the end of 2023, with
residential sales to be launched in 2024. The rest of the
West Bund development is targeted to be completed in phases from
2024 to 2027.
The combined value of the group's prime
Investment Properties portfolio reduced by 5% in 2023.
Development Properties
As anticipated, the profit contribution from
the group's Development Properties business on the Chinese mainland
was lower than the prior year, due to a combination of lower sales,
reduced profit margins and the impairment of some residential for
sale assets, in particular two residential projects in
Wuhan.
The group's attributable interest in
contracted sales in 2023 increased to US$1,530 million, from
US$1,300 million in 2022. At 31st December 2023, the group
had an attributable interest of US$2,031 million in sold but
unrecognised contracted sales, compared with US$2,087 million at
the end of 2022.
In Singapore, Development Properties profits
recognised were largely in line with the prior year. The
group's attributable interest in contracted sales was US$587
million, compared with US$615 million in the prior year.
During the year, the group launched sales for 638-unit Tembusu
Grand - in which 59% was sold or reserved as at the end of the
year. There was solid sales performance at the 638-unit
Leedon Green and 407-unit Piccadilly Grand and Galleria
developments, which are both effectively sold out.
The group's joint venture projects in the rest
of South East Asia performed within expectations, producing a
combined profit contribution in line with the prior
year.
DFI Retail
Group
The past few years have been very challenging
for DFI Retail, its customers, colleagues and shareholders.
Following the pandemic, DFI Retail is resetting and aligning its
business to a new 'Customer First, People Led, Shareholder Driven'
strategic framework, which is crucial to supporting its capital
allocation priorities and growth plans to improve performance over
the coming years.
The group reported underlying profit after tax
of US$155 million for the full year, a substantial improvement from
the US$29 million reported in the prior year, supported by strong
growth in profitability across subsidiaries and improved
performance by associates. The group reported a non-trading
loss of US$123 million, predominantly due to the goodwill
impairment in respect of the Macau Food business and Giant
Singapore, and foreign exchange losses associated with the
divestment of the Malaysian Grocery Retail business. These
losses were partially offset by gains from property divestments,
resulting in total reported profits of US$32 million.
Food
Sales revenue for the Food division in 2023
was US$3.3 billion. Excluding the impact of the Malaysian
Grocery Retail divestment, revenue for the division was 5%
lower. Underlying operating profit for the division was US$45
million for the year, compared to US$91 million in the prior
year.
Within North Asia, first half performance was
impacted by the absence this year of the pantry-stocking seen
during the fifth wave of COVID in Hong Kong in the equivalent
period last year. North Asia's performance, however, improved
in the second half and profit during that period also increased
compared to the prior year. South East Asia Food sales
performance was adversely affected by intense competition and
weakening consumer sentiment caused by rising cost of living
pressures.
Convenience
Total Convenience sales were US$2.4 billion,
an increase of 8% compared to the prior year. Like-for-like
('LFL') sales grew by 5% compared to the prior year.
Convenience underlying operating profit was US$88 million for the
year, an increase of 74% compared to the prior year.
Within Hong Kong, there were strong sales in
the first half, with sales in the second half broadly in line with
the prior year, as results were impacted by the rising frequency of
outbound travel from Hong Kong residents, particularly during
weekends. Operating profit improved strongly due to a
favourable shift in mix away from cigarette sales, as well as
ongoing strong cost control.
7-Eleven South China benefitted from the
Chinese economy reopening. Profit increased significantly as
a result of strong LFL sales growth, favourable margin impact from
product mix shift and ongoing strong cost control. 7-Eleven
Singapore also reported strong sales growth, as the business
continued to benefit from the economy reopening and strong in-store
execution, with profit almost doubling, despite labour and utility
cost pressures.
Health and Beauty
Health and Beauty division revenue increased
by 21% to US$2.4 billion, with LFL sales growing by over 20%.
Underlying operating profit increased by 127% to US$213 million for
the year.
The Mannings business, particularly in Hong
Kong, benefitted from the recovery in the economy and increased
tourism traffic. LFL sales were consistently strong over the
course of the year, which supported positive market share
momentum. Healthcare as a category performed strongly,
representing over 50% of Mannings' revenue. Mannings' profit
increased significantly due to strong sales growth, gross margin
expansion, operating leverage and ongoing strong cost
control.
Home Furnishings
IKEA reported sales revenue of US$794 million,
5% behind the prior year. Overall, LFL sales reduced by 7% in
2023, due to reduced home renovation and furniture
demand, as a result of a softening in property market
sentiment. Operating profit was US$19 million,
US$27 million behind the prior year, primarily as a
result of the revenue shortfall.
Associates
Maxim's reported a strong recovery, as
customers returned to dining out. Its contribution to the
group's underlying profit more than doubled relative to the prior
year, to US$79 million.
The group's share of Yonghui's underlying
losses was US$36 million for the year, compared to a US$80 million
share of underlying losses in the prior year. The reduction
in losses was underpinned by an improvement in gross margin and
cost optimisation. Yonghui's sales performance in the year
continued to be impacted by challenging macroeconomic conditions
and intense competition.
Robinsons Retail's underlying profit
contribution reduced from US$24 million to US$15 million.
Robinsons Retail continued to report strong sales and core net
earnings growth. For reporting purposes, however, DFI
Retail's share of Robinsons Retail's underlying profits was
adversely impacted by foreign exchange losses and higher net
financing charges reported by Robinsons Retail.
Mandarin
Oriental
In 2023, Mandarin Oriental's performance
benefitted from consumers' robust appetite for luxury leisure
travel. The group continued to provide the exceptional levels
of service for which the brand is legendary and secured record room
rates. The business also continued to build occupancy, which
translated into substantial improvements in Revenue Per Available
Room ('RevPAR') across almost all hotels.
Underlying profit increased to US$81 million,
from US$8 million in 2022, with underlying earnings per share at
US¢6.41, compared with US¢0.60 in 2022. Non-trading losses of
US$446 million primarily comprised a non-cash decrease in the
valuation of the Causeway Bay site under development, resulting in
a loss attributable to shareholders of US$365 million.
Net debt fell to US$225 million at the end of
2023, from US$376 million at the end of 2022. This reflected
significantly higher operating cashflow from the business, net of
ongoing capital investment, as well as proceeds from
disposals. Gearing as a percentage of adjusted shareholders'
funds was 5%, compared to 8% at the end of 2022.
In 2023, the management business delivered
strong operating performance, with a 30% increase in hotel
management fees and a 55% improvement in EBITDA. Combined
Total Revenue for hotels under management was US$1.9 billion in
2023, 21% above 2022. This increase was driven primarily by a
29% increase in RevPAR, primarily due to a gradual recovery of
occupancy across all geographies, a continuation of high rates in
Europe, Middle East and Africa, and a solid rebound in rates in
Asia. Food & Beverage ('F&B') revenue increased by
18% year-on-year.
Mandarin Oriental's 13 owned properties
reported a combined EBITDA 63% higher than 2022, and most
properties maintained or improved their earnings. There were
materially improved contributions by Hong Kong and Tokyo, both of
which were severely impacted by stringent travel restrictions in
2022. London and Geneva also delivered considerably improved
results, driven by better RevPAR and F&B performance.
There were lower earnings in 2023 from Singapore, due to its
closure for renovation and repositioning, and Miami.
In 2023, the group opened two new hotels and
completed one rebranding, expanding its portfolio to a total of 38
hotels and nine residences. Eight new hotel and residences
projects were announced during the year. These projects will
strengthen Mandarin Oriental's brand presence in a broader range of
destinations and enrich its customer proposition in existing
locations. At the end of 2023, the group's development
pipeline had a total of 28 hotels and two standalone residences
expected to open over the next five years, with four of these
expected in 2024.
As part of Mandarin Oriental's regular review
of its asset portfolio, the property in Jakarta was sold to Astra
in June 2023, while retaining the management contract. The
group has also announced the sale of the Paris hotel, while
retaining a long-term hotel agreement. The Causeway Bay site
in Hong Kong, which is being redeveloped as a mixed-use office and
retail complex, remains on track to complete in the first half of
2025.
Jardine Cycle & Carriage
JC&C's underlying profit attributable to
shareholders increased by 6% to US$1,160 million, mainly supported
by record results from Astra. After accounting for non-trading
items, the group's profit attributable to shareholders was US$1,215
million, 64% higher than the previous year. The non-trading items
recorded in the year mainly comprised a US$81 million gain from the
sale and leaseback of properties under Cycle & Carriage
Singapore, partly offset by unrealised fair value losses of US$20
million related to non-current investments.
Astra contributed US$1,019 million to the
group's underlying profit, 12% higher than the previous year,
reflecting improved performances from most of its
businesses.
Direct Motor Interests contributed US$68
million, an increase of 8%, with higher profits from Tunas Ridean
in Indonesia and Cycle & Carriage Bintang in
Malaysia.
The contribution from the group's Other
Strategic Interests was 2% down at US$84 million, due to lower
earnings reported by REE, offset by higher profits in Siam City
Cement.
THACO
THACO contributed US$36 million, 57% down from
the previous year. This was mainly due to a significantly
lower automotive profit, reflecting the slowdown of Vietnam's
economy, weakened consumer sentiment and greater competitive
pressure. Unit sales were 28% down, with a market share
decline from 23% to 21%. Losses from its agricultural
operations were, however, lower than the previous year.
The group's continued commitment to Vietnam
and THACO was demonstrated by JC&C's investment of a further
US$350 million in THACO through its subscription for a five-year
convertible bond.
Astra
Astra's consolidated revenue of US$20.6
billion and underlying net profit of US$2,175 million under IFRS,
were 3% and 9% higher than the previous year, respectively.
This earnings growth reflected improved performances from
most of the group's businesses, especially the automotive and
financial services divisions.
The following performance review on Astra's
businesses is based on results prepared under Indonesian accounting
standards.
Under Indonesian accounting standards, Astra
reported a record net income of Rp33.8 trillion, equivalent to
US$2.2 billion, 17% higher than 2022 in its reporting
currency. Excluding the fair value loss on the group's
investments in GoTo and Hermina, Astra's net profit of Rp34.0
trillion, or US$2.2 billion, was 12%
higher than the same period last year in its reporting
currency.
Automotive
Net income increased by 18% to US$750 million,
reflecting higher sales in the motorcycle and components
businesses.
The wholesale car market decreased by 4% to
1.0 million units in 2023. Astra's car sales in 2023 were 2%
lower, but market share increased from 55% to 56%. The
wholesale motorcycle market grew by 19% in 2023. Astra Honda
Motor's sales increased by 22% compared with the prior year and its
market share increased from 77% to 78%.
The group's 80%-owned components business,
Astra Otoparts, reported a 39% increase in net income to US$121
million in 2023, mainly due to improved operating margin and higher
contributions from its associates.
Financial Services
Net income increased by 30% to US$516 million
in 2023, primarily due to higher contributions from its consumer
finance businesses.
The group's consumer finance and heavy
equipment-focussed finance businesses saw a 15% and 8% increase,
respectively, in new amounts financed to US$7.7 billion and US$0.7
billion, respectively. The net income contribution from the heavy
equipment-focussed finance businesses increased significantly by
75% to US$12 million, mainly due to a larger loan
portfolio.
General insurance company Asuransi Astra Buana
reported a 14% increase in net income to US$92 million, mainly due
to higher insurance revenue. The group's life insurance company,
Asuransi Jiwa Astra, recorded a 2% increase in gross written
premiums to US$401 million.
Heavy Equipment, Mining,
Construction and Energy
Net income was stable at US$832 million, with
improved performances from construction machinery and mining
contracting offsetting lower contributions from the group's coal
and gold mining businesses.
United Tractors reported a 2% decrease in net
income to US$1,354 million. Komatsu heavy equipment sales decreased
by 8%, while revenues from the parts and service businesses were
higher.
General contractor Acset Indonusa, 87.7%-owned
by United Tractors, reported a lower net loss of US$18 million,
compared with a net loss of US$30 million in the previous
year.
Agribusiness
Net income decreased by 39% to US$55 million,
largely due to lower selling prices of crude palm oil.
Infrastructure and Logistics
Net income increased by 85% to US$64 million,
due to improved performance in its toll road, transportation
solutions and logistics businesses.
The group has interests in 396km of
operational toll roads along the Trans-Java network and in the
Jakarta Outer Ring Road. The group's toll road concessions saw 7%
higher daily toll revenue during the year.
Serasi Autoraya's net income increased by 26%
to US$14 million, mainly due to higher contributions from
transportation solutions and logistics services, with vehicles
under contract relatively stable at 25,800 units, which more than
offset a lower contribution from used car earnings.
Information Technology
The group's information technology division,
represented by 76.9%-owned Astra Graphia, reported a 45% increase
in net income to US$7 million, primarily due to improved operating
margin.
Property
The group's property division saw a 10%
increase in net income to US$9 million, mainly due to an
improvement in occupancy at Menara Astra.
Outlook
There was a very solid performance overall by
the Group in 2023, exceeding pre-pandemic profit levels despite
increasingly challenging conditions as the year
progressed.
The Group enters 2024 facing continued market
challenges in key segments in China and Vietnam, as well as lower
market prices for a number of Astra's key commodity outputs in
Indonesia.
We remain confident, however, in
our long-term strategy across our core
markets in Asia and will continue
to focus on our strategic priorities in order to
deliver growth and long-term value, benefitting from
our diversified portfolio.
John Witt
Group Managing
Director
|
|
|
Jardine Matheson
Holdings Limited
Consolidated Profit
and Loss Account
for the year ended
31st December 2023
|
|
|
|
|
|
|
|
|
2023
|
2022
|
Underlying
business
performance
US$m
|
Non-
trading
items
US$m
|
Total
US$m
|
Underlying
business
performance
US$m
restated
|
Non-
trading
items
US$m
|
Total
US$m
restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (note
2)
|
|
36,049
|
|
|
|
-
|
|
|
|
|
36,049
|
|
|
|
|
37,496
|
|
|
|
-
|
|
|
|
|
37,496
|
|
|
Net operating costs (note 3)
|
|
(31,760)
|
|
|
|
(75)
|
|
|
|
|
(31,835)
|
|
|
|
|
(33,370)
|
|
|
|
(363)
|
|
|
|
|
(33,733)
|
|
|
Change in fair value of investment properties
|
|
-
|
|
|
|
(1,779)
|
|
|
|
|
(1,779)
|
|
|
|
|
-
|
|
|
|
(930)
|
|
|
|
|
(930)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
4,289
|
|
|
|
(1,854)
|
|
|
|
|
2,435
|
|
|
|
|
4,126
|
|
|
|
(1,293)
|
|
|
|
|
2,833
|
|
|
Net financing charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- financing charges
|
|
(769)
|
|
|
|
-
|
|
|
|
|
(769)
|
|
|
|
|
(625)
|
|
|
|
-
|
|
|
|
|
(625)
|
|
|
- financing income
|
|
253
|
|
|
|
-
|
|
|
|
|
253
|
|
|
|
|
197
|
|
|
|
-
|
|
|
|
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(516)
|
|
|
|
-
|
|
|
|
|
(516)
|
|
|
|
|
(428)
|
|
|
|
-
|
|
|
|
|
(428)
|
|
|
Share of results of associates and joint ventures
(note 4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- before change in fair value of investment
properties
|
|
1,261
|
|
|
|
107
|
|
|
|
|
1,368
|
|
|
|
|
1,232
|
|
|
|
(411)
|
|
|
|
|
821
|
|
|
- change in fair value of investment properties
|
|
-
|
|
|
|
18
|
|
|
|
|
18
|
|
|
|
|
-
|
|
|
|
(3)
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,261
|
|
|
|
125
|
|
|
|
|
1,386
|
|
|
|
|
1,232
|
|
|
|
(414)
|
|
|
|
|
818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
5,034
|
|
|
|
(1,729)
|
|
|
|
|
3,305
|
|
|
|
|
4,930
|
|
|
|
(1,707)
|
|
|
|
|
3,223
|
|
|
Tax (note
5)
|
|
(932)
|
|
|
|
(11)
|
|
|
|
|
(943)
|
|
|
|
|
(964)
|
|
|
|
4
|
|
|
|
|
(960)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after tax
|
|
4,102
|
|
|
|
(1,740)
|
|
|
|
|
2,362
|
|
|
|
|
3,966
|
|
|
|
(1,703)
|
|
|
|
|
2,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Company (notes 6 & 7)
|
|
1,661
|
|
|
|
(975)
|
|
|
|
|
686
|
|
|
|
|
1,584
|
|
|
|
(1,230)
|
|
|
|
|
354
|
|
|
Non-controlling interests
|
|
2,441
|
|
|
|
(765)
|
|
|
|
|
1,676
|
|
|
|
|
2,382
|
|
|
|
(473)
|
|
|
|
|
1,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,102
|
|
|
|
(1,740)
|
|
|
|
|
2,362
|
|
|
|
|
3,966
|
|
|
|
(1,703)
|
|
|
|
|
2,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
|
|
|
|
|
|
|
|
US$
|
|
|
|
|
US$
|
|
|
|
|
|
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (note 6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- basic
|
|
5.74
|
|
|
|
|
|
|
|
|
2.37
|
|
|
|
|
5.49
|
|
|
|
|
|
|
|
|
1.22
|
|
|
- diluted
|
|
5.73
|
|
|
|
|
|
|
|
|
2.37
|
|
|
|
|
5.49
|
|
|
|
|
|
|
|
|
1.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jardine Matheson
Holdings Limited
Consolidated
Statement of Comprehensive Income
for the year ended
31st December 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
US$m
|
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
2,362
|
|
|
|
|
|
2,263
|
|
|
|
Other comprehensive income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to profit and
loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exchange translation gain/(loss) arising
during
the year
|
|
|
88
|
|
|
|
|
|
(761)
|
|
|
|
Remeasurements of defined benefit plans
|
|
|
(18)
|
|
|
|
|
|
37
|
|
|
|
Net revaluation surplus before transfer to
investment properties
|
|
|
|
|
|
|
|
|
|
|
|
|
- tangible assets
|
|
|
1
|
|
|
|
|
|
-
|
|
|
|
- right-of-use assets
|
|
|
63
|
|
|
|
|
|
39
|
|
|
|
Tax on items that will not be reclassified
|
|
|
4
|
|
|
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
138
|
|
|
|
|
|
(692)
|
|
|
|
Share of other comprehensive income/(expense) of
associates and joint ventures
|
|
|
24
|
|
|
|
|
|
(467)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
162
|
|
|
|
|
|
(1,159)
|
|
|
|
Items that may be reclassified subsequently to
profit
and loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exchange translation differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- net gain/(loss) arising during the year
|
|
|
29
|
|
|
|
|
|
(526)
|
|
|
|
- transfer to profit and loss
|
|
|
111
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
140
|
|
|
|
|
|
(522)
|
|
|
|
Revaluation of other investments at fair value
through
other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- net loss arising during the year
|
|
|
(12)
|
|
|
|
|
|
(20)
|
|
|
|
- transfer to profit and loss
|
|
|
-
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12)
|
|
|
|
|
|
(22)
|
|
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- net (loss)/gain arising during the year
|
|
|
(40)
|
|
|
|
|
|
92
|
|
|
|
- transfer to profit and loss
|
|
|
(36)
|
|
|
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(76)
|
|
|
|
|
|
85
|
|
|
|
Tax relating to items that may be reclassified
|
|
|
9
|
|
|
|
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of other comprehensive expense of
associates and joint ventures
|
|
|
(78)
|
|
|
|
|
|
(487)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17)
|
|
|
|
|
|
(957)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(expense) for the year,
net of tax
|
|
|
145
|
|
|
|
|
|
(2,116)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
2,507
|
|
|
|
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Company
|
|
|
729
|
|
|
|
|
|
(660)
|
|
|
|
Non-controlling interests
|
|
|
1,778
|
|
|
|
|
|
807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,507
|
|
|
|
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Jardine Matheson
Holdings Limited
Consolidated Balance
Sheet
at 31st December
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31st December
|
|
|
|
|
|
|
2023 US$m
|
|
|
|
2022 US$m
restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets
|
|
|
|
|
|
2,274
|
|
|
|
2,485
|
|
Tangible assets
|
|
|
|
|
|
6,585
|
|
|
|
5,853
|
|
Right-of-use assets
|
|
|
|
|
|
4,080
|
|
|
|
4,184
|
|
Investment properties
|
|
|
|
|
|
30,166
|
|
|
|
31,813
|
|
Bearer plants
|
|
|
|
|
|
481
|
|
|
|
465
|
|
Associates and joint ventures
|
|
|
|
|
|
18,473
|
|
|
|
17,856
|
|
Other investments
|
|
|
|
|
|
3,329
|
|
|
|
2,801
|
|
Non-current debtors
|
|
|
|
|
|
3,833
|
|
|
|
3,269
|
|
Deferred tax assets
|
|
|
|
|
|
644
|
|
|
|
575
|
|
Pension assets
|
|
|
|
|
|
8
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
69,873
|
|
|
|
69,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties for sale
|
|
|
|
|
|
3,480
|
|
|
|
3,311
|
|
Stocks and work in progress
|
|
|
|
|
|
3,664
|
|
|
|
3,513
|
|
Current debtors
|
|
|
|
|
|
6,691
|
|
|
|
6,799
|
|
Current investments
|
|
|
|
|
|
55
|
|
|
|
18
|
|
Current tax assets
|
|
|
|
|
|
159
|
|
|
|
156
|
|
Cash and bank balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- non-financial services companies
|
|
|
|
|
|
4,519
|
|
|
|
5,526
|
|
- financial services companies
|
|
|
|
|
|
361
|
|
|
|
372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,880
|
|
|
|
5,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,929
|
|
|
|
19,695
|
|
Asset classified as held for sale
|
|
|
|
|
|
380
|
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
19,309
|
|
|
|
19,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
89,182
|
|
|
|
89,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
At 31st December
|
|
|
|
|
|
|
2023 US$m
|
|
|
|
2022 US$m
restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
72
|
|
|
|
73
|
|
Share premium and capital reserves
|
|
|
|
|
|
22
|
|
|
|
26
|
|
Revenue and other reserves
|
|
|
|
|
|
28,916
|
|
|
|
28,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' funds
|
|
|
|
|
|
29,010
|
|
|
|
28,850
|
|
Non-controlling interests
|
|
|
|
|
|
26,921
|
|
|
|
27,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
55,931
|
|
|
|
56,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- non-financial services companies
|
|
|
|
|
|
9,486
|
|
|
|
10,541
|
|
- financial services companies
|
|
|
|
|
|
1,647
|
|
|
|
1,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,133
|
|
|
|
12,073
|
|
Non-current lease liabilities
|
|
|
|
|
|
2,966
|
|
|
|
2,951
|
|
Deferred tax liabilities
|
|
|
|
|
|
862
|
|
|
|
791
|
|
Pension liabilities
|
|
|
|
|
|
370
|
|
|
|
368
|
|
Non-current creditors
|
|
|
|
|
|
268
|
|
|
|
200
|
|
Non-current provisions
|
|
|
|
|
|
359
|
|
|
|
336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
15,958
|
|
|
|
16,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- non-financial services companies
|
|
|
|
|
|
3,419
|
|
|
|
2,500
|
|
- financial services companies
|
|
|
|
|
|
2,094
|
|
|
|
1,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,513
|
|
|
|
4,163
|
|
Current lease liabilities
|
|
|
|
|
|
754
|
|
|
|
772
|
|
Current tax liabilities
|
|
|
|
|
|
471
|
|
|
|
671
|
|
Current creditors
|
|
|
|
|
|
10,308
|
|
|
|
10,318
|
|
Current provisions
|
|
|
|
|
|
203
|
|
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,249
|
|
|
|
16,099
|
|
Liabilities directly associated with assets
classified as held for sale
|
|
|
|
|
|
44
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
17,293
|
|
|
|
16,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
33,251
|
|
|
|
32,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities
|
|
|
|
|
|
89,182
|
|
|
|
89,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jardine Matheson Holdings Limited
Consolidated Statement of Changes in Equity
for
the year ended 31st December 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
US$m
|
|
Share
premium
US$m
|
|
Capital
reserves
US$m
|
|
Revenue
reserves
US$m
|
|
Asset
revaluation
reserves
US$m
|
|
Hedging
reserves
US$m
|
|
Exchange
reserves
US$m
|
|
Own
shares
held
US$m
|
|
Attributable to shareholders of the Company
US$m
|
|
Attributable
to
non-controlling interests
US$m
|
|
Total
equity
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1st January
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- as previously reported
|
73
|
|
-
|
|
26
|
|
28,887
|
|
2,272
|
|
55
|
|
(2,487)
|
|
-
|
|
28,826
|
|
27,371
|
|
56,197
|
- change in accounting policies
(note 1)
|
-
|
|
-
|
|
-
|
|
24
|
|
-
|
|
-
|
|
-
|
|
-
|
|
24
|
|
39
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- as restated
|
73
|
|
-
|
|
26
|
|
28,911
|
|
2,272
|
|
55
|
|
(2,487)
|
|
-
|
|
28,850
|
|
27,410
|
|
56,260
|
Total comprehensive
income
|
-
|
|
-
|
|
-
|
|
662
|
|
51
|
|
(44)
|
|
60
|
|
-
|
|
729
|
|
1,778
|
|
2,507
|
Dividends paid by the Company
(note 8)
|
-
|
|
-
|
|
-
|
|
(637)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(637)
|
|
-
|
|
(637)
|
Dividends paid to non-controlling
interests
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,037)
|
|
(2,037)
|
Unclaimed dividends
forfeited
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
1
|
|
3
|
Employee share option
schemes
|
-
|
|
-
|
|
10
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10
|
|
3
|
|
13
|
Scrip issued in lieu of
dividends
|
-
|
|
(1)
|
|
-
|
|
183
|
|
-
|
|
-
|
|
-
|
|
-
|
|
182
|
|
-
|
|
182
|
Repurchase of shares
|
(1)
|
|
-
|
|
-
|
|
(208)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(209)
|
|
-
|
|
(209)
|
Capital contribution from
non-controlling interests
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
41
|
|
41
|
Share purchased for a share-based
incentive plan in a subsidiary
|
-
|
|
-
|
|
-
|
|
(7)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7)
|
|
(2)
|
|
(9)
|
Subsidiaries acquired
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
37
|
|
37
|
Subsidiaries disposed of
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5
|
|
5
|
Change in interests in
subsidiaries
|
-
|
|
-
|
|
-
|
|
75
|
|
-
|
|
-
|
|
-
|
|
-
|
|
75
|
|
(315)
|
|
(240)
|
Change in interests in associates
and joint ventures
|
-
|
|
-
|
|
-
|
|
15
|
|
-
|
|
-
|
|
-
|
|
-
|
|
15
|
|
-
|
|
15
|
Transfer
|
-
|
|
1
|
|
(14)
|
|
13
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31st December
|
72
|
|
-
|
|
22
|
|
29,009
|
|
2,323
|
|
11
|
|
(2,427)
|
|
-
|
|
29,010
|
|
26,921
|
|
55,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1st January
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- as previously reported
|
179
|
|
-
|
|
25
|
|
34,926
|
|
2,242
|
|
(18)
|
|
(1,350)
|
|
(6,223)
|
|
29,781
|
|
28,587
|
|
58,368
|
- change in accounting policies
(note 1)
|
-
|
|
-
|
|
-
|
|
24
|
|
-
|
|
-
|
|
-
|
|
-
|
|
24
|
|
39
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- as restated
|
179
|
|
-
|
|
25
|
|
34,950
|
|
2,242
|
|
(18)
|
|
(1,350)
|
|
(6,223)
|
|
29,805
|
|
28,626
|
|
58,431
|
Total comprehensive
income
|
-
|
|
-
|
|
-
|
|
374
|
|
30
|
|
73
|
|
(1,137)
|
|
-
|
|
(660)
|
|
807
|
|
147
|
Dividends paid by the Company
(note 8)
|
-
|
|
-
|
|
-
|
|
(607)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(607)
|
|
-
|
|
(607)
|
Dividends paid to non-controlling
interests
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(994)
|
|
(994)
|
Unclaimed dividends
forfeited
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
2
|
Issue of shares
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
Employee share option
schemes
|
-
|
|
-
|
|
4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4
|
|
2
|
|
6
|
Scrip issued in lieu of
dividends
|
1
|
|
(1)
|
|
-
|
|
184
|
|
-
|
|
-
|
|
-
|
|
-
|
|
184
|
|
-
|
|
184
|
Repurchase of shares
|
(1)
|
|
(2)
|
|
-
|
|
(168)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(171)
|
|
-
|
|
(171)
|
Reduction of capital
|
(106)
|
|
(1)
|
|
-
|
|
(6,116)
|
|
-
|
|
-
|
|
-
|
|
6,223
|
|
-
|
|
-
|
|
-
|
Capital contribution from
non-controlling interests
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4
|
|
4
|
Share purchased for a share-based
incentive plan in a subsidiary
|
-
|
|
-
|
|
-
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
(5)
|
|
(20)
|
Change in interests in
subsidiaries
|
-
|
|
-
|
|
-
|
|
322
|
|
-
|
|
-
|
|
-
|
|
-
|
|
322
|
|
(1,030)
|
|
(708)
|
Change in interests in associates
and joint ventures
|
-
|
|
-
|
|
-
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
-
|
|
(15)
|
Transfer
|
-
|
|
3
|
|
(3)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31st December
|
73
|
|
-
|
|
26
|
|
28,911
|
|
2,272
|
|
55
|
|
(2,487)
|
|
-
|
|
28,850
|
|
27,410
|
|
56,260
|
|
At the Company's annual general
meeting on 5th May 2022, shareholders approved the cancellation of
the 59% shareholding in the Company held by its subsidiaries by way
of a reduction of capital in the Company. The capital reduction,
which was effective on 18th May 2022, constituted the final stage
in the Group's simplification of its parent company structure that
commenced in 2021.
|
|
|
|
|
|
|
|
|
|
Jardine Matheson
Holdings Limited
Consolidated Cash
Flow Statement
for the year ended
31st December 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
|
5,549
|
|
|
|
5,287
|
|
Interest received
|
|
217
|
|
|
|
177
|
|
Interest and other financing charges paid
|
|
(758)
|
|
|
|
(564)
|
|
Tax paid
|
|
(1,307)
|
|
|
|
(1,006)
|
|
|
|
|
|
|
|
|
|
|
|
3,701
|
|
|
|
3,894
|
|
Dividends from associates and joint ventures
|
|
883
|
|
|
|
931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
4,584
|
|
|
|
4,825
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of subsidiaries (note 9(a))
|
|
(378)
|
|
|
|
(19)
|
|
Purchase of associates and joint ventures (note 9(b))
|
|
(1,166)
|
|
|
|
(658)
|
|
Purchase of other investments (note 9(c))
|
|
(671)
|
|
|
|
(645)
|
|
Purchase of intangible assets
|
|
(114)
|
|
|
|
(154)
|
|
Purchase of tangible assets
|
|
(1,667)
|
|
|
|
(1,014)
|
|
Additions to leasehold land under right-of-use
assets
|
|
(31)
|
|
|
|
(53)
|
|
Additions to investment properties
|
|
(151)
|
|
|
|
(123)
|
|
Additions to bearer plants
|
|
(35)
|
|
|
|
(39)
|
|
Advances to associates and joint ventures
(note 9(d))
|
|
(455)
|
|
|
|
(802)
|
|
Repayments from associates and joint ventures
(note 9(e))
|
|
1,252
|
|
|
|
416
|
|
Sale of subsidiaries (note 9(f))
|
|
365
|
|
|
|
-
|
|
Sale of associates and joint ventures (note 9(g))
|
|
134
|
|
|
|
30
|
|
Sale of other investments (note 9(h))
|
|
161
|
|
|
|
228
|
|
Sale of intangible assets
|
|
-
|
|
|
|
3
|
|
Sale of tangible assets (note 9 (i))
|
|
364
|
|
|
|
230
|
|
Sale of right-of-use assets
|
|
38
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
(2,354)
|
|
|
|
(2,593)
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of shares
|
|
-
|
|
|
|
1
|
|
Capital contribution from non-controlling
interests
|
|
41
|
|
|
|
4
|
|
Acquisition of the remaining interest in Jardine
Strategic
|
|
(5)
|
|
|
|
(21)
|
|
Change in interests in other subsidiaries (note 9(j))
|
|
(240)
|
|
|
|
(708)
|
|
Purchase of own shares
|
|
(209)
|
|
|
|
(173)
|
|
Purchase of shares for a share-based incentive plan
in
a subsidiary
|
|
(9)
|
|
|
|
(20)
|
|
Drawdown of borrowings
|
|
9,873
|
|
|
|
9,047
|
|
Repayment of borrowings
|
|
(9,475)
|
|
|
|
(9,113)
|
|
Principal elements of lease payments
|
|
(856)
|
|
|
|
(875)
|
|
Dividends paid by the Company
|
|
(455)
|
|
|
|
(423)
|
|
Dividends paid to non-controlling interests
|
|
(2,037)
|
|
|
|
(994)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
(3,372)
|
|
|
|
(3,275)
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
(1,142)
|
|
|
|
(1,043)
|
|
Cash and cash equivalents at 1st January
|
|
5,879
|
|
|
|
7,278
|
|
Effect of exchange rate changes
|
|
59
|
|
|
|
(356)
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at 31st December
|
|
4,796
|
|
|
|
5,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jardine Matheson
Holdings Limited
Analysis of Profit
Contribution
for the year ended
31st December 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable
segments
|
|
|
|
|
|
|
|
Jardine Pacific
|
|
164
|
|
|
|
182
|
|
Jardine Motor Interests
|
|
139
|
|
|
|
299
|
|
Hongkong Land
|
|
389
|
|
|
|
405
|
|
DFI Retail
|
|
120
|
|
|
|
22
|
|
Mandarin Oriental
|
|
65
|
|
|
|
6
|
|
Jardine Cycle & Carriage
|
|
102
|
|
|
|
135
|
|
Astra
|
|
786
|
|
|
|
691
|
|
|
|
|
|
|
|
|
|
|
|
1,765
|
|
|
|
1,740
|
|
Corporate and other interests
|
|
(104)
|
|
|
|
(156)
|
|
|
|
|
|
|
|
|
|
Underlying profit attributable to shareholders*
|
|
1,661
|
|
|
|
1,584
|
|
Decrease in fair value of investment properties
|
|
(1,066)
|
|
|
|
(604)
|
|
Other non-trading items
|
|
91
|
|
|
|
(626)
|
|
|
|
|
|
|
|
|
|
Profit attributable to shareholders
|
|
686
|
|
|
|
354
|
|
|
|
|
|
|
|
|
|
Analysis of Jardine
Pacific's contribution
|
|
|
|
|
|
|
|
Jardine Schindler
|
|
42
|
|
|
|
36
|
|
JEC
|
|
57
|
|
|
|
53
|
|
Gammon
|
|
45
|
|
|
|
39
|
|
Transport Services
|
|
30
|
|
|
|
23
|
|
Jardine Restaurants
|
|
(15)
|
|
|
|
19
|
|
Zung Fu Hong Kong
|
|
10
|
|
|
|
12
|
|
Corporate and other interests
|
|
(5)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
164
|
|
|
|
182
|
|
|
|
|
|
|
|
|
|
Analysis of Jardine
Motor Interests' contribution
|
|
|
|
|
|
|
|
Zhongsheng
|
|
139
|
|
|
|
263
|
|
Jardine Motors Group United Kingdom
|
|
1
|
|
|
|
35
|
|
Corporate
|
|
(1)
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
139
|
|
|
|
299
|
|
|
|
|
|
|
|
|
|
* 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
1. Accounting Policies and Basis
of Preparation
The financial information contained in this
announcement has been based on the audited results for the year
ended 31st December 2023 which have been prepared in conformity
with International Financial Reporting Standards ('IFRS Accounting
Standards'), including International Accounting Standards ('IAS')
and Interpretations as issued by the International Accounting
Standards Board ('IASB').
The Group has adopted the following standard and
amendments for the annual reporting period commencing 1st January
2023.
IFRS 17 'Insurance
Contracts'
(effective from 1st January 2023)
The standard covers recognition, measurement,
presentation and disclosure for insurance contracts and is
applicable to the Group's insurance businesses in Indonesia.
Prior to the adoption of IFRS 17, profits were recognised in the
profit and loss on initial recognition of certain insurance
contracts. Under IFRS 17, all profits are recognised in the
profit and loss over the life of the contracts as insurance
services are provided. The adoption of IFRS 17 resulted in
certain restatements to the Group's financial statements.
The effect of adopting IFRS 17 on the consolidated
profit and loss account for the year ended 31st December 2022 was
as follows:
(a) On the consolidated profit and loss
account
|
As
previously reported
|
|
Adjustment upon adoption of IFRS 17 Increase/
(decrease)
|
|
Restated
|
|
For the year ended 31st December 2022
|
US$m
|
|
US$m
|
|
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
37,724
|
|
(228)
|
|
37,496
|
|
Net operating costs
|
(33,961)
|
|
228
|
|
(33,733)
|
|
Change in fair value of
investment
properties
|
(930)
|
|
-
|
|
(930)
|
|
|
|
|
|
|
|
|
Operating profit
|
2,833
|
|
-
|
|
2,833
|
|
(b) On the consolidated balance sheet
|
As
previously reported
|
|
Adjustment upon adoption of IFRS 17 Increase/
(decrease)
|
|
Restated
|
|
At 31st December 2022
|
US$m
|
|
US$m
|
|
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Intangible assets
|
2,528
|
|
(43)
|
|
2,485
|
|
Non-current debtors
|
3,222
|
|
47
|
|
3,269
|
|
Debtors
|
6,873
|
|
(74)
|
|
6,799
|
|
Total assets
|
89,148
|
|
(70)
|
|
89,078
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Revenue and other reserves
|
28,727
|
|
24
|
|
28,751
|
|
Non-controlling interests
|
27,371
|
|
39
|
|
27,410
|
|
Total
equity
|
56,197
|
|
63
|
|
56,260
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Non-current creditors
|
191
|
|
9
|
|
200
|
|
Current tax liabilities
|
672
|
|
(1)
|
|
671
|
|
Current creditors
|
10,459
|
|
(141)
|
|
10,318
|
|
Total liabilities
|
32,951
|
|
(133)
|
|
32,818
|
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
89,148
|
|
(70)
|
|
89,078
|
|
The consolidated balance sheet on 1st January 2022
has not been presented, as the impact of adoption of IFRS 17 is not
significant.
Disclosure of Accounting Policies
- Amendments to IAS 1 and IFRS Practice Statement 2
(effective from 1st January
2023)
The amendments require entities to disclose material
rather than significant accounting policies. The amendments
define what is 'material accounting policy information' and explain
how to identify when accounting policy information is
material. Material accounting policy information is
information that, when considered together with other information
included in an entity's financial statements, can reasonably be
expected to influence decisions that the primary users of general
purpose financial statements make on the basis of those financial
statements. IASB further clarifies that immaterial accounting
policy information does not need to be disclosed. If it is
disclosed, it should not obscure material accounting
information. To support this amendment, the IASB also amended
IFRS Practice Statement 2 Making Materiality Judgements to provide
guidance on how to apply the concept of materiality to accounting
policy disclosures.
The material accounting policies following the
adoption of IAS 1 are included in note 40 to the financial
statements.
Amendment to IAS 12 - Deferred Tax
related to Assets and Liabilities arising from a Single
Transaction
(effective from 1st January
2023)
The amendment requires deferred tax to be recognised
on transactions that, on initial recognition, give rise to equal
amounts of taxable and deductible temporary differences. They
typically apply to transactions such as leases of lessees and
decommissioning obligations and require the recognition of
additional deferred tax assets and liabilities. On adoption
of the amendment, the deferred tax assets and liabilities had been
restated in the notes to the financial statements with no impact on
the balance sheet.
Amendment to IAS 12 -
International Tax Reform - Pillar Two Model Rules
(effective for annual reporting
period commencing on or after 1st January 2023)
The amendment provides a temporary mandatory
exception from deferred tax accounting in respect of Pillar Two
income taxes and certain additional disclosure requirements.
The Group is within the scope of the OECD Pillar Two model rules,
and has applied the amendment from 1st January 2023.
Pillar Two legislation has been enacted or
substantially enacted in certain jurisdictions in which the Group
operates. The legislation will be effective for the Group's
annual reporting period commencing 1st January 2024. Since
the Pillar Two legislation was not effective at 31st December 2023,
the Group has no related current tax exposure.
The Group is in scope of the enacted or
substantively enacted legislation and has performed an assessment
of the Group's potential exposure to Pillar Two income taxes when
the legislation comes into effect. The assessment of the
potential exposure to Pillar Two income taxes is based on the
latest financial information for the year ended 31st December
2023 of the constituent entities in the Group. Based on the
assessment, the effective tax rates in most of the jurisdictions in
which the Group operates are above 15%. However, there are a
limited number of jurisdictions where the effective tax rate is
slightly below or close to 15%. The Group does not expect a
material exposure to Pillar Two income taxes in those
jurisdictions.
There are no other amendments which are effective in
2023 and relevant to the Group's operations, that have a
significant impact on the Group's results, financial position and
accounting policies.
The Group has not early adopted any standard,
interpretation or amendments that have been issued but not yet
effective.
2. Revenue
|
|
|
|
|
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By
business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jardine Pacific
|
|
|
|
|
|
|
|
2,135
|
|
|
|
2,079
|
|
|
Jardine Motor Interests
|
|
|
|
|
|
|
|
165
|
|
|
|
2,044
|
|
|
Hongkong Land
|
|
|
|
|
|
|
|
1,844
|
|
|
|
2,244
|
|
|
DFI Retail
|
|
|
|
|
|
|
|
9,170
|
|
|
|
9,174
|
|
|
Mandarin Oriental
|
|
|
|
|
|
|
|
558
|
|
|
|
454
|
|
|
Jardine Cycle & Carriage
|
|
|
|
|
|
|
|
1,629
|
|
|
|
1,589
|
|
|
Astra
|
|
|
|
|
|
|
|
20,606
|
|
|
|
19,977
|
|
|
Intersegment transactions and other
|
|
|
|
|
|
|
|
(58)
|
|
|
|
(65)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,049
|
|
|
|
37,496
|
|
3. Net Operating Costs
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
(25,775)
|
|
|
|
(27,310)
|
|
|
Other operating income
|
|
634
|
|
|
|
493
|
|
|
Selling and distribution costs
|
|
(3,918)
|
|
|
|
(4,017)
|
|
|
Administration expenses
|
|
(2,385)
|
|
|
|
(2,296)
|
|
|
Other operating expenses
|
|
(391)
|
|
|
|
(603)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31,835)
|
|
|
|
(33,733)
|
|
|
|
|
|
|
|
|
|
|
|
Net operating costs included the following
gains/(losses) from non-trading items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of other investments
|
|
11
|
|
|
|
(395)
|
|
|
Impairment of goodwill
|
|
(226)
|
|
|
|
(6)
|
|
|
Impairment of other assets
|
|
-
|
|
|
|
(3)
|
|
|
Sale and closure of businesses
|
|
36
|
|
|
|
(15)
|
|
|
Sale of a hotel property
|
|
-
|
|
|
|
41
|
|
|
Sale of property interests
|
|
123
|
|
|
|
31
|
|
|
Restructuring of businesses
|
|
(13)
|
|
|
|
(7)
|
|
|
Other
|
|
(6)
|
|
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(75)
|
|
|
|
(363)
|
|
4. Share of Results of Associates
and Joint Ventures
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By
business:
|
|
|
|
|
|
|
|
|
Jardine Pacific
|
|
130
|
|
|
|
12
|
|
|
Jardine Motor Interests
|
|
238
|
|
|
|
263
|
|
|
Hongkong Land
|
|
253
|
|
|
|
193
|
|
|
DFI Retail
|
|
53
|
|
|
|
(212)
|
|
|
Mandarin Oriental
|
|
(1)
|
|
|
|
10
|
|
|
Jardine Cycle & Carriage
|
|
122
|
|
|
|
45
|
|
|
Astra
|
|
611
|
|
|
|
531
|
|
|
Corporate and other interests
|
|
(20)
|
|
|
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,386
|
|
|
|
818
|
|
|
|
|
|
|
|
|
|
|
|
Share of results of associates and joint ventures
included the following gains/(losses) from non-trading items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of investment properties
|
|
18
|
|
|
|
(3)
|
|
|
Change in fair value of other investments
|
|
11
|
|
|
|
(26)
|
|
|
Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- investment in Robinsons Retail
|
|
-
|
|
|
|
(171)
|
|
|
- investment in Siam Cement
|
|
-
|
|
|
|
(114)
|
|
|
- other
|
|
-
|
|
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(385)
|
|
|
Share of Zhongsheng's results from 1st July 2022
to
31st December 2022 (note 7)
|
|
101
|
|
|
|
-
|
|
|
Other
|
|
(5)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125
|
|
|
|
(414)
|
|
Results are shown after tax and non-controlling
interests in the associates and joint ventures.
5. Tax
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax charged to profit and loss is analysed as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax
|
|
(1,043)
|
|
|
|
(1,022)
|
|
|
Deferred tax
|
|
100
|
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(943)
|
|
|
|
(960)
|
|
|
|
|
|
|
|
|
|
|
|
China
|
|
(160)
|
|
|
|
(139)
|
|
|
South East Asia
|
|
(761)
|
|
|
|
(793)
|
|
|
United Kingdom
|
|
(2)
|
|
|
|
(6)
|
|
|
Rest of the world
|
|
(20)
|
|
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(943)
|
|
|
|
(960)
|
|
|
|
|
|
|
|
|
|
|
|
Tax relating to components of other comprehensive
income is analysed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of defined benefit plans
|
|
4
|
|
|
|
(7)
|
|
|
Cash flow hedges
|
|
9
|
|
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
(18)
|
|
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$282 million (2022: US$490 million)
is included in share of results of associates and joint
ventures. Share of tax credit of US$1 million (2022: tax charge of US$30 million) is
included in other comprehensive income of associates and joint
ventures.
6. Earnings per Share
Basic earnings per share are calculated on profit
attributable to shareholders of US$686 million (2022:
US$354 million) and on the weighted average number of
290 million (2022:
289 million) shares in issue during the year.
Diluted earnings per share are calculated on profit
attributable to shareholders of US$686 million (2022: US$354 million), which is after
adjusting for the effects of the conversion of dilutive potential
ordinary shares of subsidiaries, associates or joint ventures, and
on the weighted average number of 290 million (2022: 289 million) shares in issue
during the year.
The weighted average number of shares is arrived at
as follows:
|
|
|
Ordinary shares
in millions
|
|
|
|
|
2023
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares in issue
|
|
290
|
|
|
|
467
|
|
|
Company's share of shares held by subsidiaries
|
|
-
|
|
|
|
(178)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares for basis and
diluted earnings per share calculation
|
|
290
|
|
|
|
289
|
|
There was no shares deemed to be issued for no
consideration for the calculation of diluted earnings per share
under the Senior Share Executive Incentive Schemes for the year
ended 31st December 2023 (2022:
721 shares).
Additional basic and diluted earnings per share are
also calculated based on underlying profit attributable to
shareholders. A reconciliation of earnings is set out
below:
|
|
|
|
|
|
2023
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
US$m
|
|
|
Basic
earnings
per
share
US$
|
|
|
Diluted
earnings
per
share
US$
|
|
|
US$m
|
|
|
Basic
earnings
per share
US$
|
|
|
Diluted
earnings
per share US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to
shareholders
|
|
686
|
|
|
2.37
|
|
|
2.37
|
|
|
354
|
|
|
1.22
|
|
|
1.22
|
|
|
Non-trading items (note 7)
|
|
975
|
|
|
|
|
|
|
|
|
1,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit attributable to
shareholders
|
|
1,661
|
|
|
5.74
|
|
|
5.73
|
|
|
1,584
|
|
|
5.49
|
|
|
5.49
|
|
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,
and equity and debt investments which are measured at fair value
through profit and loss; gains and losses arising from the sale of
businesses, investments and properties; impairment of
non-depreciable intangible assets, associates and joint ventures
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.
|
|
2023
|
|
2022
|
|
|
|
Profit
before tax
US$m
|
|
|
|
Attributable to shareholders
US$m
|
|
|
|
Profit
before tax
US$m
|
|
|
|
|
Attributable to shareholders
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By
business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jardine Pacific
|
|
25
|
|
|
|
23
|
|
|
|
(305)
|
|
|
|
|
(305)
|
|
|
Jardine Motor Interests
|
|
165
|
|
|
|
165
|
|
|
|
(22)
|
|
|
|
|
(30)
|
|
|
Hongkong Land
|
|
(1,290)
|
|
|
|
(701)
|
|
|
|
(646)
|
|
|
|
|
(335)
|
|
|
DFI Retail
|
|
(201)
|
|
|
|
(156)
|
|
|
|
(143)
|
|
|
|
|
(112)
|
|
|
Mandarin Oriental
|
|
(489)
|
|
|
|
(394)
|
|
|
|
(64)
|
|
|
|
|
(46)
|
|
|
Jardine Cycle & Carriage
|
|
55
|
|
|
|
54
|
|
|
|
(308)
|
|
|
|
|
(234)
|
|
|
Astra
|
|
(40)
|
|
|
|
(12)
|
|
|
|
(88)
|
|
|
|
|
(37)
|
|
|
Corporate and other interests
|
|
46
|
|
|
|
46
|
|
|
|
(131)
|
|
|
|
|
(131)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,729)
|
|
|
|
(975)
|
|
|
|
(1,707)
|
|
|
|
|
(1,230)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An analysis of non-trading items is set out
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of investment properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Hongkong Land
|
|
(1,307)
|
|
|
|
(710)
|
|
|
|
(646)
|
|
|
|
|
(335)
|
|
|
- other
|
|
(454)
|
|
|
|
(356)
|
|
|
|
(287)
|
|
|
|
|
(269)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,761)
|
|
|
|
(1,066)
|
|
|
|
(933)
|
|
|
|
|
(604)
|
|
|
Change in fair value of other investments
|
|
22
|
|
|
|
35
|
|
|
|
(421)
|
|
|
|
|
(327)
|
|
|
Impairment of goodwill
|
|
(226)
|
|
|
|
(172)
|
|
|
|
(6)
|
|
|
|
|
(5)
|
|
|
Impairment of associates
|
|
-
|
|
|
|
-
|
|
|
|
(385)
|
|
|
|
|
(320)
|
|
|
Impairment of other assets
|
|
-
|
|
|
|
-
|
|
|
|
(3)
|
|
|
|
|
(2)
|
|
|
Share of Zhongsheng's results from 1st July 2022 to
31st December 2022
|
|
101
|
|
|
|
101
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Sale and closure of businesses
|
|
35
|
|
|
|
44
|
|
|
|
(15)
|
|
|
|
|
(24)
|
|
|
Sale of hotel properties
|
|
-
|
|
|
|
(2)
|
|
|
|
41
|
|
|
|
|
37
|
|
|
Sale of property interests
|
|
123
|
|
|
|
105
|
|
|
|
31
|
|
|
|
|
23
|
|
|
Restructuring of businesses
|
|
(15)
|
|
|
|
(11)
|
|
|
|
(7)
|
|
|
|
|
(5)
|
|
|
Other
|
|
(8)
|
|
|
|
(9)
|
|
|
|
(9)
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,729)
|
|
|
|
(975)
|
|
|
|
(1,707)
|
|
|
|
|
(1,230)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Zhongsheng's annual results have historically
been reported after the Group's results announcement. In
previous years, the Group recognised its 21% share of Zhongsheng's
results based on publicly available reported results as at the
Group's reporting date. Hence, Zhongsheng's contribution to
the Group's 2022 results represented its share of Zhongsheng's
results for the period from 1st July 2021 to 30th June 2022.
From 2023, however, the Group has determined that a better
representation of Zhongsheng's current performance would be given
using management's estimate of its share of Zhongsheng's results on
a calendar year basis, based on an average of recent external
analyst estimates.
This change has been adopted prospectively from 1st
January 2023 as a change in estimate such that the Group's 2023
results included its share of Zhongsheng's results for an
eighteen-month period from 1st July 2022 to 31st December
2023. The Group's share of Zhongsheng's results for the year
ended 31st December 2023 are presented as underlying profit, and
the results for 1st July 2022 to 31st December 2022 have been
presented as a non-trading item so as not to distort the current
year's underlying performance.
8. Dividends
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final dividend in respect of 2022 of US$1.60
(2021:
US$1.56) per share
|
|
463
|
|
|
|
1,114
|
|
|
Interim dividend in respect of 2023 of US$0.60
(2022:
US$0.55) per share
|
|
174
|
|
|
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
637
|
|
|
|
1,273
|
|
|
Company's share of dividends paid on the shares held
by subsidiaries
|
|
-
|
|
|
|
(666)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
637
|
|
|
|
607
|
|
A final dividend in respect of 2023 of US$1.65
(2022: US$1.60) per share
amounting to a total of US$477 million (2022: US$463 million) is proposed by
the Board. The dividend proposed will not be accounted for
until it has been approved at the 2024 Annual General Meeting and
will be accounted for as an appropriation of revenue reserves in
the year ending 31st December 2024. Final dividend in
respect of 2022 of US$463 million was charged to reserves in the
year ended 31st December 2023.
9. Notes to Consolidated Cash Flow
Statement
(a) Purchase of subsidiaries
|
|
|
|
|
|
2023
Fair value
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
(526)
|
|
|
|
Current assets
|
|
|
|
(371)
|
|
|
|
Non-current liabilities
|
|
|
|
137
|
|
|
|
Current liabilities
|
|
|
|
164
|
|
|
|
Non-controlling interests
|
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of identifiable net assets acquired
|
|
|
|
(558)
|
|
|
|
Goodwill
|
|
|
|
(45)
|
|
|
|
Gain on bargain purchase
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
Total consideration
|
|
|
|
(571)
|
|
|
|
Carrying value of associates and joint ventures
|
|
|
|
102
|
|
|
|
Cash and cash equivalents of subsidiaries acquired
|
|
|
|
91
|
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow
|
|
|
|
(378)
|
|
For the subsidiaries acquired during 2023, the fair
values of the identifiable assets and liabilities at the
acquisition dates are provisional and will be finalised within one
year after the acquisition dates.
Net cash outflow for purchase of subsidiaries in
2023 included a total of US$285 million for Astra's
acquisition of 67% of PT Anugerah Surya Pasific Resources ('ASPR'),
70% of PT Stargate Pasific Resources ('SPR') and 70% of PT Stargate
Mineral Asia ('SMA'), which engage in nickel mining and processing
in Indonesia. ASPR has 30% interest in each of SPR and SMA, thus
the Group has direct and indirect attributable interest totalling
90% in each of SPR and SMA. In addition, Astra acquired a
100% interest in PT Tokobagus, a company operating a leading
classifieds platform in Indonesia under the OLX brand, for US$63
million.
Goodwill in 2023 mainly arose from the acquisition
of PT Tokobagus, which provides synergy with the Group's existing
automotive business creating a leading used car omnichannel
platform and further expand the automotive value chain. The
goodwill is not expected to be deductible for tax purposes.
Revenue and profit after tax since acquisition in
respect of subsidiaries acquired during the year amounted to US$43
million and US$7 million, respectively. Had the acquisitions
occurred on 1st January 2023, consolidated revenue and profit after
tax for the year ended 31st December 2023 would have been US$36,091
million and US$2,345 million, respectively.
(b) Purchase of associates and
joint ventures in 2023 mainly included US$287 million for Hongkong
Land's investment in the Chinese mainland; US$14 million for
Jardine Cycle & Carriage's additional interest in Refrigeration
Electrical Engineering Corporation; US$616 million, US$53 million,
US$25 million and US$99 million for Astra's acquisition of a
20% interest in Nickel Industries, a 49.6% interest in PT Supreme
Energy Sriwijaya, a 25% interest in PT Equinix Indonesia JKT and an
additional 14% interest in Halodoc (after which became
a 21%-held associate), respectively.
Purchase in 2022 mainly included US$213 million for
Hongkong Land's investments in the Chinese mainland; US$34 million
for Jardine Cycle & Carriage's additional interest in
Refrigeration Electrical Engineering Corporation; US$260 million,
US$44 million and US$41 million for Astra's investments in PT
Bank Jasa Jakarta, toll road concession business and PT Mobilitas
Digital Indonesia, respectively.
(c) Purchase of other investments in
2023 mainly included US$357 million for Jardine Cycle &
Carriage's subscription to THACO's convertible bonds and US$285
million for Astra acquisition of securities in relation to its
financial services businesses.
Purchase in 2022 mainly included Astra's acquisition
of securities in relation to its financial services businesses of
US$327 million, investments in healthcare services of US$99
million, an online consumer credit platform of US$31 million and a
technology-based logistics startup of US$14 million; and
Corporate's investment in limited partnership investments funds for
US$151 million.
(d) Advances to associates and joint
ventures in 2023 included Hongkong Land's advances to its property
joint ventures of US$434 million and Mandarin Oriental's
advance to its associate hotel of US$20 million.
Advances to associates and joint ventures in 2022
mainly included Hongkong Land's advances to its property joint
ventures.
(e) Repayments from associates and joint
ventures in 2023 mainly included Hongkong Land's repayments from
its property joint ventures of US$1,184 million and Mandarin
Oriental's repayments from its associate and joint venture hotels
of US$67 million.
Repayments from associates and joint ventures in
2022 mainly included repayments from Hongkong Land's property joint
ventures.
(f) Sale of subsidiaries
|
|
|
|
|
|
2023
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
441
|
|
|
|
Current assets
|
|
|
|
467
|
|
|
|
Non-current assets held for sale
|
|
|
|
50
|
|
|
|
Non-current liabilities
|
|
|
|
(232)
|
|
|
|
Current liabilities
|
|
|
|
(466)
|
|
|
|
Non-controlling interests
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
|
|
257
|
|
|
|
Cumulative exchange translation losses
|
|
|
|
118
|
|
|
|
Profit on disposal
|
|
|
|
7
|
|
|
|
Transaction costs and other payable
|
|
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
Sales proceeds
|
|
|
|
429
|
|
|
|
Cash and cash equivalents of subsidiaries disposed
of
|
|
|
|
(64)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash inflow
|
|
|
|
365
|
|
|
|
|
|
|
|
|
|
Net cash inflow for sale of subsidiaries in 2023
comprised US$359 million inflow from the Group's sale of its
automotive dealership business in the United Kingdom and US$29
million inflow from Hongkong Land's sale of a property interest in
Vietnam; offset by US$23 million cash outflow from DFI Retail's
divestment of its Malaysia grocery retail business.
(g) Sale of associates and joint
ventures included US$126 million for Jardine Pacific's sale of
Greatview Aseptic Packaging.
(h) Sale of other investments in
2023 and 2022 mainly included Astra's sale of securities in
relation to its financial services businesses.
(i) Sale of tangible assets in
2023 included US$106 million for DFI Retail's sale and sale and
leaseback of properties in Singapore, Malaysia and Indonesia; and
US$225 million for Jardine Cycle & Carriage's sale of its
properties in Singapore under a sale and leaseback arrangement.
Sale in 2022 included US$131 million for Mandarin
Oriental's sale of a hotel property.
(j) Change in interests in
subsidiaries
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in attributable interests
|
|
|
|
|
|
|
|
|
|
- Hongkong Land
|
|
(83)
|
|
|
|
(352)
|
|
|
|
- Jardine Cycle & Carriage
|
|
(136)
|
|
|
|
(130)
|
|
|
|
- Mandarin Oriental
|
|
(18)
|
|
|
|
(1)
|
|
|
|
- other
|
|
(3)
|
|
|
|
(225)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(240)
|
|
|
|
(708)
|
|
Increase in 2022 included US$214 million for
repurchase of shares in Astra's subsidiary, United Tractors, which
consequentially increased Astra's interest from 59.5% to 61.1%.
10. Capital Commitments and Contingent
Liabilities
Total capital commitments at 31st December 2023
amounted to US$2,283 million (2022: US$2,500 million).
Following the acquisition of the 15 per cent of
Jardine Strategic not previously owned by the Company and its
wholly-owned subsidiaries, which was effected on 14th April 2021, a
number of former Jardine Strategic shareholders are seeking an
appraisal of the fair value of their shares in Jardine Strategic by
the Bermuda court, relying upon the process referred to in the
shareholder circular issued in connection with the
acquisition. These shareholders claim the consideration of
US$33 per share that Jardine Strategic considered to be fair value
for its shares, and that all shareholders have already received,
did not represent fair value. Although the proceedings were
commenced in April 2021, they are still ongoing. It is
anticipated that the court appraisal process will not be concluded
for at least a further 12 months and will likely extend
further. The Board believes that the US$33 per share that was
paid represented fair value to Jardine Strategic minority
shareholders and is of the opinion that no provision is required in
relation to these claims.
Various Group companies are involved in litigation
arising in the ordinary course of their respective
businesses. Having reviewed outstanding claims and taking
into account legal advice received, the Directors are of the
opinion that adequate provisions have been made in the financial
statements.
11. Related Party Transactions
In the normal course of business the Group
undertakes a variety of transactions with certain of its associates
and joint ventures.
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- motor vehicles and spare parts
|
|
810
|
|
|
|
763
|
|
|
- coal
|
|
977
|
|
|
|
640
|
|
|
- crude palm oil
|
|
440
|
|
|
|
416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,227
|
|
|
|
1,819
|
|
|
|
|
|
|
|
|
|
|
|
Purchase from associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- motor vehicles and spare parts
|
|
6,484
|
|
|
|
6,142
|
|
|
- ready-to-eat products
|
|
47
|
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,531
|
|
|
|
6,184
|
|
|
|
|
|
|
|
|
|
|
|
Services received from associates and joint
ventures
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- point-of-sale system implementation and
consultancy services
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17
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13
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The Group manages six (2022: six) associate and joint
venture hotels. Management fees received by the Group in 2023
from these managed hotels amounted to US$14 million (2022: US$15 million).
The Group has engaged one of its joint ventures in
the construction business for the redevelopment of a Group's
commercial property in Hong Kong. The value of works
completed amounted to US$60 million as of 31st December 2023
(2022: US$14 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 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 the
Group's systems of risk management and internal
control. The process by which the Group identifies and
manages risk will be set out in more detail in the Corporate
Governance section of the Company's 2023 Annual Report (the
'Report'). Set out below are the principal risks and uncertainties
facing the Company as required to be disclosed pursuant to the
Disclosure Guidance and Transparency Rules, as well as a summary of
the steps taken to mitigate those risks.
These risks are in addition to matters referred to
in the Chairman's Statement, Group Managing Director's Review and
other parts of the Report.
Political and
economic risk
Description
Changes and uncertainties in the political landscape
pose risks for business activity and sentiment in the territories
where the Group operates and, consequently, for the current
investments and future growth of the Group's businesses.
Most of the Group's businesses are exposed to the
risk of adverse developments in global and regional economies and
financial markets, either directly, or through the impact such
developments might have on the Group's joint venture partners,
associates, franchisors, bankers, suppliers or customers.
These developments could include recession, inflation, deflation,
currency fluctuations, restrictions in the availability of credit,
business failures, or increases in financing costs, oil prices or
the cost of raw materials.
Mitigation
·
Maintaining the Group's financial
strength and funding sources under scenarios of economic downturn
and other stresses.
·
Monitoring the volatile macroeconomic
environment and considering economic factors in strategic and
financial planning processes.
·
Making agile adjustments to existing
business plans and exploring new business streams and new
markets.
·
Reviewing pricing strategies and
keeping conservative assumptions on global commodity
prices.
·
Insurance programme covering business
interruption due to civil unrest.
Customers' changing
behaviours and market competition
Description
The Group's businesses operate in sectors and
regions which are highly competitive and evolving rapidly.
Failure to compete effectively, whether in terms of price, product,
distribution, service or application of new technologies, can hurt
margins, earnings or market share.
Sustainability considerations has increasingly
resulted in customers switching to other companies, brands or
providers that provide sustainable products or services.
Mitigation
·
Utilising market intelligence and
deploying digital strategies for business-to-consumer
businesses.
·
Establishing customer relationship
management and digital commerce capabilities.
·
Diversifying the customer base and
reducing dependency on any key customers.
·
Re-engineering existing business
processes to take advantage of new technological
capabilities.
·
Investing in and partnering with
companies that can provide the Group access to different
capabilities and technologies.
Investment,
partnerships and franchise rights
Description
Conflicts with joint venture partners or other
strategic partners may arise due to (i) different corporate
cultures, management styles and risk appetite; (ii) disagreement
over business priorities, strategy, and allocation of
capital/resources; and (iii) conflicts of interests.
The Group's retail and motor businesses rely on
their franchises on relationships with principals, whereby
non-compliance with the agreement or a strained relationship with
principals might result in principals terminating, not renewing or
renegotiating the franchise agreement.
Mitigation
·
Conducting sufficient research, due
diligence and evaluation of investment opportunities and potential
business partners.
·
In-house Legal reviewing shareholder
agreements to ensure adequate rights and protections are in
place.
·
Developing clear frameworks and
levels of authority for investment or partnership
decisions.
·
Established Group Investment and
Business Development Committee to review significant
investments.
·
Maintaining close relationships with
senior management of business partners.
·
Requesting and influencing joint
ventures and associates to operate in a proper manner and in
compliance with policies and procedures.
·
Strengthening existing relationships
with principals through sustaining strong market shares, achieving
high customer retention and complying with dealer standards and
principal's policies.
IT, facilities and
cybersecurity
The Group's businesses are ever more reliant on
technology in their operations and face increasing cyber-attacks
from groups targeting both individuals and businesses. As a
result, the privacy and security of customer and corporate
information are at risk of being compromised through a breach of
our IT systems or the unauthorised or inadvertent release of
information, resulting in brand damage, impaired customer trust,
loss of competitiveness or regulatory action.
Cyber-attacks stemming from inadequate cybersecurity
or lack of employee cybersecurity awareness may also adversely
affect the function of important equipment and facilities and our
ability to manage daily business operations, resulting in business
interruption, reputational damage, regulatory penalties, lost
revenues, repair or other costs.
Mitigation
·
Engaging external consultants to
perform assessments on the business units with industry
benchmarks.
·
Defining cybersecurity programme and
centralised function to provide oversight, promote cybersecurity
hygiene, strengthen cybersecurity defences and manage cybersecurity
incidents.
·
Performing regular vulnerability
assessment and penetration testing to identify
weaknesses.
·
Maintaining and testing disaster
recovery plans and backup for data restoration.
·
Arranging regular security awareness
training at least annually and phishing testing to raise users'
cybersecurity awareness.
·
Conducting regular internal audits of
IT general controls and cybersecurity.
Geographic
concentration risk
Description
Certain locations in Asia contribute a significant
portion of the Group's underlying profit and are where many of its
key functions and senior management are based. Adverse
conditions such as social upheaval, erosion of the rule of law or
travel restrictions could reduce a location's competitiveness and
impact the Group's businesses concentrated operations in that
jurisdiction.
Mitigation
The diverse nature of the Group's
businesses mitigates concentration risk at a portfolio level.
Ongoing strategic initiatives include:
·
Exploring diversification of
businesses through organic growth, selective acquisitions and
establishing support services beyond locations where the Group
typically operates.
·
Maintaining financial strength under
challenging scenarios.
·
Further strengthening the Group's
brands to sustain competitiveness and resilience.
·
Supporting governments with
constructive input and activities.
Talent and
labour
Description
The competitiveness of the Group's
businesses depends on the quality of the people that it attracts
and retains. The unavailability of needed human resources may
impact the ability of the Group's businesses to operate at
capacity, implement initiatives and pursue
opportunities.
Recent and future workforce
rationalisation in some businesses may raise the potential for
organisational gaps in capabilities, succession and
controls.
Mitigation
·
Supporting workforce practices that
promote well-being and flexible work arrangements that are
competitive with the market.
·
Ensuring proactive manpower planning
and succession planning are in place.
·
Enhancing modern employer branding,
training for staff members, compensation and benefits, including
retention incentives.
·
Establishing employee assistance and
counselling programmes.
·
Enhancing talent development plans to
increase employees' visibility on future career paths, including
identifying strategic talent pools.
·
Delivering new learning academy
programmes to equip staff with finance, procurement, human
resources, digital, IT and innovation technical capabilities for
business transformation.
Climate physical
and transition risk
Description
Environmental disasters such as
earthquakes, floods and typhoons can damage the Group's assets and
disrupt operations. The Group is also facing higher insurance
premiums or reduced coverage for such natural disasters.
Some of the Group's businesses
operate in areas which are sensitive from a biodiversity point of
view have the potential to impact the local environment and to be
negatively perceived by stakeholders.
Mitigation
·
Sustainability Leadership Council
established to mobilise and coordinate sustainability efforts
across the Group.
·
A Climate Action Working Group, with
representatives from all business units, drives Group-wide
initiatives which strengthen collaboration and share
knowledge.
·
Each business is building a net-zero
carbon pathway and climate change plan to build climate
resilience.
·
Conducting climate risk assessments
and adaptation action plans based on recommendations of TCFD,
including implementing measures to address physical risks posed by
climate change and identifying opportunities in global transition
to a low carbon economy.
·
Company has issued Just Energy
Transition commitments to scale up investment in renewable energy
and related innovations, diversify into non-coal mineral mining,
and make no investments in new thermal or metallurgical coal mines
or new thermal coal-fired power plants.
Change management,
cultural agility and strategic initiatives
Description
Challenges include managing
change, fostering an agile and entrepreneurial culture that
supports innovation and exploring, and ensuring skilful project
management of strategic initiatives.
Dependence on legacy systems and
processes may also undermine change initiatives due to inability to
support new tools and efficiency improvements.
Inadequate change management,
cultural agility or strategic initiatives could lead to erosion of
competitive position and reputation, loss of valued employees,
project delays, failure to deliver results on invested resources,
and lost opportunities for cross-business synergies.
Mitigation
·
Senior management maintain support
and regular communication across the organisation on strategic
direction and cultural values.
·
Oversight of material strategic
initiatives by Steering Committees or Board.
·
Encouraging innovation, including
cross-organisation sharing of ideas, incentives and championing of
change initiatives.
·
Encouraging cross-departmental input
and involvement on projects.
·
Appointing experienced personnel to
manage projects and change, including external consultants where
needed.
·
Exploring potentially disruptive
business models by partnering with start-ups or allowing business
units autonomy to create new ventures.
Third-party service
provider and supply chain management
Description
Supply chain disruption caused by
key suppliers or service providers, or failure to deliver by
contractors/subcontractors could cause significant operational
disruption, lack of inventory supply, financial loss and
reputational damage to the businesses.
The Group's operations may be
materially affected if third parties on which we depend are
compromised by cyber-attacks. With increased reliance on
third-party ecosystems, the Group has greater exposure to
third-party risk if there is insufficient vetting, oversight or
visibility over third parties and their subcontractors,
particularly on information security, resilience, regulatory
compliance, and their ongoing capability.
Mitigation
·
Ensuring protective terms and
conditions in third-party service agreements, including vendors
being contractually required to bear higher liability for failures
to deliver or if they are responsible for a cyber incident at a
Group business.
·
Having robust evaluation and
selection procedures for vendors and third-party service providers,
including an information security assessment where
appropriate.
·
Engaging suppliers only if they agree
to comply with a supplier code of conduct where businesses
require.
·
Maintaining a minimum safety stock
for key/high risk ingredients at all times.
·
Sourcing back-up suppliers,
warehouses or other alternative plans.
·
Maintaining strong relationships with
suppliers that are designated by principals.
·
Maintaining supplier insurance to
cover logistics interruption.
·
Ensuring early negotiation of new
contracts for key service providers.
·
Diversifying the product range to
reduce the impact of disruptions to single products.
·
Including third-party disruption
scenarios as part of business continuity planning.
Health, safety and
product quality
Description
Several of the Group's businesses
engage in construction, production or other physical activities
that may lead to serious injury or fatal incidents if work
conditions are unsafe or workers do not take due care to observe
safety procedures.
The safety and quality of food
products, elevators, vehicles and other items delivered by the
Group's businesses are fundamental to their reputation with
customers. Any actual or perceived deficiency in product
safety or quality may damage consumer confidence and the brand's
reputation, leading to financial loss.
Mitigation
·
Establishing and maintaining safe
working environments and regular safety training for all employees
and subcontractors.
·
Establishing contractual requirements
for contractors to comply with high expected levels of safety
standards.
·
Incorporating site safety plans in
tenders and contracts.
·
Conducting occupational health and
safety awareness campaigns.
·
Disseminating safety materials such
as signage, guard rails and pictorial representations of safe work
procedures accessed via mobile phones.
·
Purchasing sufficient insurance
coverage including employee compensation and motorbike insurance
for delivery riders.
·
Establishing product quality and
safety standards, guidelines.
·
Reporting and including quality and
food safety as KPIs.
·
Establishing and maintaining proper
supplier selection processes.
·
Implementing comprehensive quality
control measures in all retail stores.
·
Ensuring suppliers follow the Group's
guidelines, principals' requirements and local
regulations.
·
Conducting regular audits on
suppliers, manufacturers, warehouse services providers and own
facilities.
·
Conducting periodic drills and crisis
management procedures for safety incidents, including media
handling.
·
Obtaining adequate product liability
insurance.
Compliance with and
changes to laws and regulations
Description
The Group's businesses are subject
to several regulatory regimes in the territories they operate
in. New or changing laws and regulations in a wide range of
areas such as foreign ownership of assets and businesses, exchange
controls, building and environmental standards, competition, tax,
employment and data privacy could potentially impact the operations
and profitability of the Group's businesses.
Non-compliance may lead to
reputational damage from media exposure and financial loss due to
litigation or penalties by government authorities.
Mitigation
·
Engaging legal experts at early stage
to assess implications of new rules.
·
Staying connected and informed of
relevant new and draft regulations.
·
Annual update on new
regulations.
·
Lobbying of relevant
bodies.
·
Undertaking early scenario planning
assessing the implications of new rules and preparing
contingencies.
Customer exposures
and claims on customers
Description
If not carefully managed,
receivables from customers could be impaired and lead to financial
loss. Customers may also present financial exposures for
businesses that provide product warranties or insurance as part of
their offering.
For construction projects, claims
on customers are substantial parts of the contract sum.
Failure to agree claims with customers due to disputes on terms
such as delivery of contractual scope or cost estimates may impair
profitability and cash flow of the projects.
Mitigation
·
Setting credit limits based on
comprehensive and regular evaluation of customers'
creditworthiness.
·
Monitoring the ageing of accounts
receivable.
·
Implementing receivables collection
to maximise recoverability.
·
Reviewing and ensuring terms and
conditions of contracts are acceptable, including payment terms,
during tender stage.
·
Maintaining sufficient provision for
doubtful debts, based on prudent assessment of recoverability of
receivables.
·
Allocating sufficient allowances for
contingencies for each project.
·
Considering sanctions lists when
assessing potential customers.
Financial strength
and funding
Description
The Group's activities expose it
to a variety of risks to its financial strength and funding,
including market risk, credit risk and liquidity risk.
The market risk the Group faces
includes (i) foreign exchange risk from future commercial
transactions, net investments in foreign operations and net
monetary assets and liabilities that are denominated in a currency
that is not the entity's functional currency; (ii) interest rate
risk through the impact of rate changes on interest bearing
liabilities and assets; and (iii) securities price risk as a result
of its equity investments and limited partnership investment funds
which are measured at fair value through profit and loss, and debt
investments which are measured at fair value through other
comprehensive income.
The Group's credit risk is
primarily attributable to deposits with banks, contractual cash
flows of debt investments carried at amortised cost and those
measured at fair value through other comprehensive income, credit
exposures to customers and derivative financial instruments with a
positive fair value.
The Group may face liquidity risk
if its credit rating deteriorates or if it is unable to meet its
financing commitments.
Several of the Group's businesses
and projects may have concessions, franchises or other contracts
which contain financial requirements as part of their obligations
which, if breached, may lead to termination or
renegotiation.
Mitigation
·
Setting clear policies and limits on
market, credit and liquidity risks, including in relation to
foreign exchange exposure, interest rate risks, cash management and
prohibition on derivatives not used in hedging.
·
Regular internal audits of compliance
with treasury policies.
·
Adopting appropriate credit
guidelines to manage counterparty risk.
·
When economically feasible, taking
borrowings in local currency to hedge foreign exchange exposures on
investments.
·
Fixing a portion of borrowings in
fixed rates.
·
Maintaining adequate headroom in
committed facilities to facilitate the Group's capacity to pursue
new investment opportunities and to provide some protection against
market uncertainties.
·
Keeping an appropriate funding
balance between equity and debt from banks and capital markets,
both short- and long-term in tenor, to give flexibility to develop
the business.
·
Maintaining sufficient cash and
marketable securities, and availability of funding from an adequate
amount of committed credit facilities and the ability to close out
market positions.
·
The Group's Treasury operations are
managed as cost centres and are not permitted to undertake
speculative transactions unrelated to underlying financial
exposures.
The detailed steps taken by the
Group to manage its exposure to financial risk are set out in the
Financial Review and in a note to the financial statements in the
Report.
Governance and
misconduct
Description
Ethical breaches, management
override of controls, employee fraud and misconduct, or other
deficiencies in governance and three lines of internal controls may
result in financial loss and reputational damage for the
Group.
Inadequate capability and
diversity in management or the Board may also lead to sub-optimal
deliberations and decisions.
The Group holds minority stakes in
various companies. Lack of control or significant influence
over these companies may lead to losses on the Group's investment
if the companies are mismanaged.
Mitigation
·
Established Groupwide mandatory Code
of Conduct and training that applies to all Group businesses and
new joiners.
·
Maintaining a robust Corporate
Governance Framework which includes whistle-blowing
channels.
·
Compliance departments of individual
businesses reviewing internal controls.
·
Maintaining functionally independent
internal audit function that reports to the Group Audit Committee
on risk management, the control environment and significant
non-compliance matters.
·
Maintaining Professional Indemnity,
Crime and General Liability insurance policies with adequate
coverage.
Responsibility
Statements
The Directors of the Company confirm to the best of
their knowledge that:
(a) the consolidated financial
statements prepared in accordance with International Financial
Reporting Standards, including International Accounting Standards
and Interpretations as issued by the International Accounting
Standards Board, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group;
and
(b) the Chairman's Statement, Group
Managing Director's Review, Financial Review and the description of
Principal Risks and Uncertainties facing the Group as set out in
the Company's 2023 Annual Report, which constitute the management
report required by the Disclosure Guidance and Transparency Rule
4.1.8, include a fair review of all information required to be
disclosed under Rules 4.1.8 to 4.1.11 of the Disclosure Guidance
and Transparency Rules issued by the Financial Conduct Authority of
the United Kingdom.
For and on behalf of the Board
John Witt
Graham Baker
Directors
Dividend
Information for Shareholders
The final dividend of US$1.65 per share will be
payable on 15th May 2024, subject to approval at the Annual General
Meeting to be held on 8th May 2024, to shareholders on the register
of members at the close of business on 22nd March 2024. The shares
will be quoted ex-dividend on 21st March 2024 and the share
registers will be closed from 25th to 29th March 2024, inclusive.
The dividend will be available in cash with a scrip
alternative.
Shareholders will receive their cash dividends in
United States Dollars, except when elections are made for alternate
currencies in the following circumstances.
Shareholders on the
Jersey branch register
Shareholders registered on the Jersey branch
register will have the option to elect for their dividends to be
paid in Sterling. These shareholders may make new currency
elections for the 2023 final dividend by notifying the United
Kingdom transfer agent in writing by 26th April 2024. The Sterling
equivalent of dividends declared in United States Dollars will be
calculated by reference to a rate prevailing on 2nd May 2024.
Shareholders holding their shares through CREST in
the United Kingdom will receive their cash dividends in Sterling
only as calculated above.
Shareholders on the
Singapore branch register who hold their shares through The Central
Depository (Pte) Limited ('CDP')
Shareholders who are on CDP's
Direct Crediting Service ('DCS')
For those shareholders who are on CDP's DCS, they
will receive their cash dividends in Singapore Dollars unless they
opt out of CDP Currency Conversion Service, through CDP, to receive
United States Dollars.
Shareholders who are not on CDP's DCS
For those shareholders who are not on CDP's DCS,
they 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 22nd March 2024, must submit the relevant
documents to Boardroom Corporate & Advisory Services Pte. Ltd.,
the Singapore branch registrar, by no later than 5.00 p.m. (local
time) on 21st March 2024.
The Jardine
Matheson Group
Jardine Matheson is a diversified Asian-based group
founded in China in 1832, with unsurpassed experience in the
region. Our broad portfolio of market-leading businesses are
well-positioned to capture the themes of urbanisation and the
rising middle-income population in Asia. The Group's businesses aim
to produce sustainable returns by providing their customers with
high quality products and services. The Group is committed to
driving long-term sustainable success in our businesses and our
communities.
Jardine Matheson operates principally in China and
South East 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, health and beauty, home
furnishings, engineering and construction, transport services,
restaurants, luxury hotels, financial services, heavy equipment,
mining and agribusiness.
Jardine Matheson holds interests in Jardine Pacific
(100%), Hongkong Land (53.3%), DFI Retail Group (77.5%), Mandarin
Oriental (80.2%), Zhongsheng Group (21.2%) and Jardine Cycle &
Carriage (78.1%) ('JC&C'). JC&C in turn has a 50.1%
shareholding in Astra.
Jardine Matheson Holdings Limited is incorporated in
Bermuda and has a primary 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
|
|
Graham Baker / Suzanne Cheuk
|
(852) 2843 8218 /
8262
|
|
|
Brunswick Group Limited
|
|
William Brocklehurst
|
(852) 5685 9881
|
Full text of the Preliminary
Announcement of Results and the Preliminary Financial Statements
for the year ended 31st December 2023 can be accessed via the
Jardines corporate website www.jardines.com.