TIDMJDS TIDMJARJ
RNS Number : 9358R
Jardine Strategic Hldgs Ltd
11 March 2021
To: Business Editor 11th March 2021
For immediate release
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
Jardine Strategic Holdings Limited
2020 Preliminary Announcement of Results
Resilient performance in challenging conditions
Headlines
-- Underlying net profit attributable to shareholders down
35% to US$1,094 million and underlying earnings per share
down 34% to US$1.96
-- Southeast Asian businesses and Mandarin Oriental severely
impacted by the pandemic, but resilience in Hongkong Land,
Dairy Farm, Jardine Pacific and Jardine Motors
-- Continued investment for the long-term exemplified by
US$4.5 billion investment by Hongkong Land in West Bund
in Shanghai
"2020 has brought major challenges to our teams and businesses,
but also demonstrated once again the Group's ability to adapt and
thrive as our businesses accelerated the pace at which they adopt
technology and embraced digital ways of working. High levels of
uncertainty remain in respect of this year, however, given the
continuing impact of the pandemic. The Group's performance in the
first part of 2021 is expected to be affected in particular by the
continuing headwinds faced by our businesses in Southeast Asia and
the ongoing low levels of Chinese mainland and other visitors to
Hong Kong. There is continued robust economic activity on the
Chinese mainland, but it is uncertain whether this will be
maintained. It remains too soon to predict what the impact of the
pandemic will be on the Group's performance for the full year.
However, we remain confident in our long-term strategy, rooted in
the growth markets of Asia, and we will continue to focus on our
core priorities of driving operational excellence, evolving the
Group's portfolio and finding new growth opportunities, in order to
deliver long-term value.
John Witt, Managing Director
"2020 was a year of exceptional challenge for everyone, with the
global pandemic fundamentally changing the way we do business, and
carry out our day-to-day lives, against the backdrop of changes in
the wider society and the global economy. I am grateful to our
teams across all the Group's companies for the tremendous
dedication and commitment they have shown serving our customers in
these difficult times and am encouraged by the Group's resilient
performance in the face of these challenges. We have a long track
record of successfully navigating change and challenge throughout a
history spanning nearly two centuries. The resilience the Group
demonstrated in 2020 provides the Board with the confidence to
continue to take advantage of long-term opportunities in Asia,
while adapting to the changing external environment and rapidly
evolving expectations of our stakeholders."
Ben Keswick, Executive Chairman
Results Summary
Year ended 31st December
2020 2019 Change
US$m US$m %
------------------------------------------------------- --------- ---------- -------
Gross revenue including 100% of
Jardine Matheson, associates and
joint ventures 90,906 103,308 -12
Revenue 25,778 32,665 -21
Underlying profit* before tax 2,608 4,500 -42
Underlying profit* attributable
to shareholders 1,094 1,681 -35
(Loss)/profit attributable to shareholders (863) 2,178 n/a
US$ US$ %
--------- ----------
Underlying earnings per share* 1.96 2.98 -34
(Loss)/earnings per share (1.54) 3.86 n/a
Dividends per share 0.105(1) 0.355 n/a
Net asset value per share (#) 58.22 57.98 -
* 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 43
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.
(#) Net asset value per share is calculated on a market value
basis, details of which are set out in note 16.
Note (1) : As announced on 8th March 2021, the Company has
entered into an Implementation Agreement under the terms of which
it has undertaken not to declare or pay any dividend prior to the
effective date of the Acquisition of the Company by way of an
Amalgamation under the Bermuda Companies Act.
Jardine Strategic Holdings Limited (the 'Company')
2020 Preliminary Announcement of Results
Chairman's Statement
2020 in Review
2020 was a year of exceptional challenge for everyone, with the
global pandemic fundamentally changing the way we do business, and
carry out our day-to-day lives, against the backdrop of changes in
wider society and the global economy. Colleagues across the Group
have been impacted both personally and professionally over the past
year.
The Group's performance, and its resilience more broadly, depend
on the passion, hard work, dedication and flexibility of some
400,000 people who work for the Group and the nearly 90 associates,
joint venture businesses and others with whom we partner. I want to
begin by thanking each of them.
The pandemic has changed the way we all work. The innovation and
dedication of colleagues who have embraced new ways of working
despite the stress of uncertainty, worries about the health and
wellbeing of loved ones and the fast pace of change in the business
and operating environment has been impressive. I am especially
proud of our frontline staff who have put the needs of customers
first despite everything.
COVID-19 and its economic consequences have had a devastating
effect on individuals and communities. At Group level and in our
operating companies the pandemic has intensified our focus on
ensuring the health and wellbeing of our communities, customers and
employees.
We have a long track record of successfully navigating change
and challenge throughout our history spanning nearly two centuries.
The resilience the Group demonstrated in 2020 provides the Board
with the confidence, and our Group with the resources, to continue
to take advantage of the best long-term opportunities in Asia,
while adapting to the changing external environment and evolving
expectations of our stakeholders.
Performance
The Group's underlying net profit for the year was down 35% at
US$1,094 million. The reduction in profit was primarily driven by
the weaker performances of the Group's Southeast Asian businesses
in Astra and Jardine Cycle & Carriage ('JC&C'), as well as
by the severe impact of the pandemic on the Group's hotel business.
There was, however, resilience in the performances of Hongkong
Land, Dairy Farm, Jardine Pacific and Jardine Motors, in part
supported by government employment programmes.
The financial and operational strength of the Group's businesses
continues to be supported by its investment strategy and approach
to capital allocation. The Board keeps its portfolio of businesses
under review and regularly assesses whether action is necessary to
ensure that the Group's activities remain aligned with its
strategic priorities. Despite the short-term challenges of the
pandemic, the Board sees it as essential to continue to invest for
the long-term in business opportunities which will drive future
growth.
The Group also needs to continue to adapt and embrace technology
and the digital economy in order to meet the changing habits of
consumers and clients - the way they shop, the way they work, the
way they travel - and to compete effectively against new economy
businesses in a rapidly changing world. We are making progress in
this direction already but there is more to do.
Significant Developments
Jardines continues to have a strong presence in, and a key focus
on, two of the fastest growing consumer markets in the world: China
and Southeast Asia. China again provided the larger contribution to
the Group in 2020, underpinned by the Group's significant presence
in Hong Kong. The Chinese mainland is an increasingly important
market for the Group, contributing 29% of profits in the year, and
the Group is focused on growing its businesses there further.
This focus is exemplified by Hongkong Land's strategic
acquisition and launch during the year of the West Bund project, a
large, predominantly commercial, mixed-use site in a prime
waterside location in Shanghai. Planning for the development of the
site is progressing well and incorporates an industry-leading
approach to sustainability.
Southeast Asia is the other area of key focus for the Group. Our
businesses in the region faced considerable challenges in the year
as a result of COVID-19, and much of their effort was spent
addressing the threats posed by the pandemic. Nevertheless, the
Group continues to see the region as a source of significant future
growth and it is focused on taking a long-term view towards its
businesses there.
At Dairy Farm, the multi-year transformation programme to
reshape and reorganise the business, adapting to the needs of
customers, has never been more relevant and it continued to
progress during the year, despite the impact of the pandemic. The
space optimisation plan, new store formats and improvement
programmes generated greater efficiencies and delivered tangible
results. The launch of the yuu rewards programme in July was an
important milestone in the group's development. The programme has
surpassed expectations in its first nine months and is already
proving to be a key enabler of the group's objective of adopting a
more customer-centric approach across all banners and driving
enhanced levels of consumer engagement.
Simplification of Jardine Matheson Holdings Parent Company
Structure and Acquisition of Jardine Strategic Holdings Limited
As announced on 8th March 2021, Jardine Matheson Holdings
Limited ('Jardine Matheson') plans to simplify the Group's parent
company structure, including the acquisition for cash of the c.15%
of the Company's issued share capital that Jardine Matheson and its
wholly owned subsidiaries does not already own. It is intended that
the acquisition will be implemented by way of an Amalgamation under
the Bermuda Companies Act. Full details of the terms of the
Simplification and acquisition are outlined in the announcement
documents.
The Company's Board has appointed a Transaction Committee,
comprising only those Directors who are not also members of Jardine
Matheson's board, to consider the terms of the Acquisition offer.
The Transaction Committee has taken independent financial advice
from Evercore Partners International LLP and considers the terms of
the Acquisition to be fair and reasonable insofar as the Company's
independent shareholders are concerned. Accordingly, the
Transaction Committee is unanimously in favour of the
Acquisition.
In connection with the Acquisition and related matters, the
Company and Jardine Matheson have entered into an Implementation
Agreement. Under the terms of the Implementation Agreement, the
Company has undertaken not to declare or pay any dividend prior to
the Effective Time of the Amalgamation.
Sustainability
The last few years have seen sustainability rapidly rise up the
agenda for companies and their stakeholders, and the pandemic has
further accelerated the importance of businesses committing to
meaningful action to support their communities and protect the
planet. We have always had a multi-generational perspective. A key
part of our purpose is to act as stewards and ensure that we leave
the Group, our communities, and the planet stronger, healthier, and
more resilient for our children and their children. To achieve
this, sustainability needs to be fundamental to how we do business,
for the Group and our operating companies.
Eighteen months ago we established a Sustainability Leadership
Council, to bring together key decision-makers from across our
Group companies to help shape our approach to sustainability. We
have made significant progress since then, developing a Group
sustainability strategy which is aligned to the UN's Sustainable
Development Goals and based on three key pillars: addressing
climate change; responsible consumption; and social inclusion. We
will be driving change in a range of areas under each of these
pillars: in the climate area we will be focusing on decarbonisation
and effective management of climate risk; reducing plastic and food
waste will be key elements of our efforts to promote responsible
consumption; and education, health and supporting livelihoods will
be the primary areas of focus of our social inclusion agenda.
We have already seen strong initiatives by many of our
businesses in a number of these areas, including the
long-established social inclusion contributions made by Astra in
Indonesia; the focus on addressing climate change by our property
and construction businesses; and the efforts to reduce waste by our
hotels, restaurants and other businesses. For the first time,
however, we now have a clear Group-wide sustainability strategy
which will enable Jardines to make a real difference at scale in
the communities where we operate. Our priority now is to ensure we
deliver on our commitments in each of these areas, and we will be
driving forward our agenda in the coming year.
This year we also joined the World Business Council for
Sustainable Development (WBCSD), a global organisation of over 200
leading businesses which work together to accelerate the transition
to a sustainable world. Our membership of this influential
organisation will allow us to learn from our peers and share
insights and knowledge as we progress our sustainability
priorities.
Our deep connection with millions of people across the Asia
region gives us a great opportunity to influence - as well as
anticipate - consumer behaviours. As a business, we want to be a
force for good and I am committed to keeping sustainability at the
heart of Jardines in the years to come.
Governance
We made some important changes among our executives and Board in
the last year. On 15th June the roles of Executive Chairman and
Managing Director, which I had held on a combined basis since
January 2019, reverted to being separate roles. I remain as
Executive Chairman and John Witt has taken on the role of Managing
Director.
The separation of these roles has enabled us to strengthen and
enhance the effectiveness of the Group's leadership as we respond
to the exceptional challenges and opportunities 2020 has brought,
and position Jardines for long-term success. John has brought a
fresh approach to how we run the business, with a strong focus on
entrepreneurial spirit and innovative thinking. He has also brought
his vast experience to the role.
Also in June 2020, Graham Baker replaced John as Chief Financial
Officer, joining Jardines from Smith + Nephew in the United
Kingdom. Graham has extensive experience of large international
businesses and he brings a new perspective which will be especially
important as we navigate the changes ahead. Simon Keswick retired
as a Director on 1st January 2020.
In January 2021, Stuart Gulliver, who joined the board of
Jardine Matheson as a Non-executive Director in January 2019,
succeeded Anthony Nightingale as Chair of the Audit Committee.
Stuart's great experience and deep knowledge of the markets in
which we operate will enable him to make a valuable contribution as
we seek to further enhance our governance framework. Anthony
remains as a member of the Committee and I would like to thank him
for the significant contribution he has made as its Chair over the
past five years.
Conclusion
2020 was a year of exceptional challenge for everyone, with the
global pandemic fundamentally changing the way we do business, and
carry out our day-to-day lives, against the backdrop of seismic
changes in the wider society and the global economy. I am grateful
to our teams across all the Group's companies for the tremendous
dedication and commitment they have shown serving our customers in
these difficult times and am encouraged by the Group's performance
in the face of these challenges.
Ben Keswick
Executive Chairman
Managing Director's Review
Introduction
I was excited to become Managing Director in June and to lead
Jardines at this important time, as we build on nearly 190 years of
success, make ourselves ever more relevant for our customers and
position the Group for future success. Taking up the role when the
business has needed to respond to the challenges of the global
pandemic has reinforced my admiration for our people. I would like
to thank each of them for their hard work and dedication over the
past year, often in very challenging circumstances.
Protecting and ensuring the wellbeing of our colleagues has been
a top priority throughout the year. We have taken extensive actions
in this regard, including giving colleagues access to support and
resources to address mental health concerns, encouraging flexible
working practices and making health and safety a high priority. Our
businesses have also been taking action to support suppliers,
partners and the communities we operate in, to help them weather
the crisis. This has included working with suppliers to help them
develop more efficient ways of working, providing rent relief to
tenants in our retail portfolios, particularly in Hong Kong and
Singapore, and extensive CSR (corporate social responsibility)
support in our communities.
My first nine months in the role have strengthened my conviction
that pace, innovation and adaptability are all more important than
ever if Jardines is to stay nimble and achieve further success. We
have shown great resilience in the past year while making notable
progress in modernising the core of our business and changing how
we do business to reflect the evolving environment in which we find
ourselves. The pace of change in each of our markets has, however,
only accelerated over the past year, and we need to drive forward
our strategic priorities with conviction and a heightened sense of
urgency in the coming year.
Evolving the Group Portfolio
We will build on our proven track record of actively managing
our portfolio to be in the more attractive markets of Asia and in
businesses where we can achieve market leading positions, in order
to sustain growth and create long-term sustainable value. The
healthy geographic diversification we have with presence in China
and Southeast Asia, as well as our balance of businesses across
sectors has underpinned our resilient performance against
challenging market conditions.
We will continue to seek mutually beneficial and enduring
partnerships with local leaders to support our growth plans in
priority markets.
We are rising to the challenge of digital - finding new
inorganic growth opportunities which complement our current
businesses or enable our wider participation in the digital
economy. We are actively seeking partnership and investment
opportunities to evolve our portfolio to increase exposure to the
digital economy, emerging industries and new geographies. We have
begun to form new partnerships - including joint ventures with
Gojek and WeLAB in Indonesia and with Bank of China and JD
Technology in Hong Kong to form the livi virtual bank. We need to
build on the progress we have made so far to develop more new
partnerships in this space.
At the same time as we look for investment and partnership
opportunities, we will continue to regularly review our business
portfolio and prune assets which are no longer seen as being
aligned with our Group strategy, or where we believe there are
better owners of the assets than Jardines. This was exemplified by
the disposals this year of our stake in Permata Bank and our
technology business JTH, as well as the sale of our interest in JLT
in 2019. In 2020, we also sold our Wellcome Taiwan business, and
combined our interest in Rose Pharmacy with Robinsons Retail's
pharmacy business in the Philippines.
The Group is focused on developing and implementing its
portfolio strategy and on increasing its decision-making agility,
so we can act with speed to seize opportunities when they arise and
maximise our portfolio value.
Driving Operational Excellence
Our management teams are focused on driving operational
excellence in our businesses and in new ventures we undertake. A
key priority in this context is for our existing businesses to
accelerate the pace at which they adopt technology and embrace
digital ways of working. This will enable our businesses to adapt
to, and meet the challenges and opportunities of, the rapidly
changing competitive environment in which they operate, which is
increasingly dominated by new economy businesses. Digital
techniques and tools have the power to transform the way we
interact with our customers and maintain competitive leadership.
Dairy Farm's launch of yuu - Hong Kong's most innovative and
comprehensive rewards platform - is already completely changing the
way we engage with customers and helping us move beyond a
transactional focus to drive new ways of meeting and anticipating
individual customer needs and preferences.
Our other businesses are also forging new partnerships with
digital innovators, including JD Technology and Gojek, to enter
adjacent areas and to develop innovative products and services.
We are also seeing impressive progress being made in a number of
our businesses, including the transformation programme in Dairy
Farm and the business improvement initiatives being carried out in
JEC and Jardine Restaurants. The increased efficiencies which these
initiatives have created are helping our businesses navigate the
challenges posed by the pandemic. There is still more to do,
however, in many of our businesses to set them up for future
success.
Enhancing Leadership and Entrepreneurialism
Another key priority is attracting, developing and retaining
leadership talent in our teams and supporting our businesses'
management teams to do the same in their organisations.
We must provide our colleagues with appropriate training and
other support to equip them with the right skills to navigate the
challenges and opportunities they face, both in the short term in
the context of COVID-19 and for the longer-term. In this context we
have made great progress in the past year in developing a
comprehensive programme of online learning and academies across the
Group, which has seen high levels of participation and demonstrates
our commitment to supporting our colleagues in acquiring the new
skills they need.
As we grow, it is essential that we maintain a high pace of
change and foster a greater level of entrepreneurialism among both
current and future leaders.
Progressing Sustainability
We are committed to integrating sustainability into the strategy
and business models of our Group companies. Real value can be
realised from sustainable businesses - this is not merely a
stakeholder management and check-box exercise but rather our
objective is that sustainability should be at the core of our
strategies and decision-making.
Many of our businesses are already actively pursuing
sustainability strategies. This year, we will drive a more aligned,
focused approach to sustainability across all our Group companies
to maximise the impact we have in our communities and on the
environment. We aim to actively share the positive actions our
diverse businesses are taking in this area, by reporting more
effectively on ESG (environmental, social and governance) issues,
with a Group sustainability report to be published in 2022.
Our businesses will also this year launch programmes to enable
colleagues to actively engage in support of our corporate
sustainability priorities.
Summary of Performance
The Group's underlying net profit for the year fell by 35% to
US$1,094 million, with underlying earnings per share down 34% to
US$1.96.
The reduction in profit was primarily driven by the weaker
performances of the Group's Southeast Asian businesses in Astra and
JC&C, as well as by the severe impact of the pandemic on the
Group's hotel business. Astra's business in Indonesia saw lower
profit contributions from most of its divisions, as did JC&C's
motor and other interests across Southeast Asia. Mandarin Oriental
was significantly impacted by the pandemic and the resulting travel
reduction.
The performances of Hongkong Land, Dairy Farm, Jardine Pacific
and the Group's Motors business were, however, resilient. Group
results benefitted in a number of markets from government support
relating to COVID-19, which totalled US$268 million attributable to
the Group and supported the continuing employment of the Group's
employees.
Hongkong Land delivered a solid performance in its Investment
Properties business and benefitted from a recovery in sentiment in
its Development Properties business on the Chinese mainland in the
second half. Dairy Farm saw strong performance from its Grocery
Retail and Home Furnishings businesses, and its transformation
programme continued to deliver benefits. Its Health and Beauty and
Convenience businesses, however, as well as the restaurants
business of its associate Maxim's, all suffered due to the impact
of the pandemic.
After taking account of decreases in property valuations
totalling some US$1.9 billion, the Group recorded a net loss of
US$863 million.
The Group's balance sheet remains strong with gearing of 6%,
down from 9% at the end of December 2019.
The Group's capital investment, including expenditure on
properties for sale, was US$7.5 billion in 2020, and capital
investment at Jardine Matheson, and the Group's associates and
joint ventures was US$2.6 billion. Excluding the investment in the
West Bund project in Hongkong Land, there was some scaling down of
investments in the year in response to a decline in demand by
consumers, but the Group continues to invest for the long-term and
ensure that its businesses have the resources to drive future
growth.
Individual Business Performance
Jardine Matheson
Jardine Matheson achieved an underlying profit before tax for
the year of US$2,786 million, a decrease of 40%. The underlying
profit attributable to shareholders was down 32% at US$1,085
million, while underlying earnings per share fell by 30% to
US$2.95. There was loss attributable to shareholders for the year
of US$394 million, mainly due to a decrease in property valuations
totalling some US$1.4 billion.
Businesses held by Jardine Matheson
Jardine Pacific
Jardine Pacific produced an underlying net profit of US$182
million, 11% higher than 2019. Net profit after net non-trading
gains was US$514 million. There was an extensive focus in the year
across Jardine Pacific's businesses on driving operational
improvements. These initiatives required significant investment but
the benefits are beginning to be seen in improved business
performance and Jardine Pacific is well set for future growth.
Group Group Share of
Interest Underlying profit
--------------------
% 2020 20 19
US$m US$m
--------- --------- ---------
Analysis of Jardine Pacific's contribution:
Jardine Schindler 50 32 48
JEC 50 -100 51 41
Gammon 50 38 36
Jardine Restaurants 100 32 13
Transport Services 42-50 24 18
JTH 100 5 7
Corporate, property and other interests* - 1
--------- ---------
182 164
--------- ---------
*including Greatview, held through Jardine Strategic
Jardine Restaurants saw profits rise by US$19 million, with a
better performance from Pizza Hut in Hong Kong and Taiwan driven by
strong delivery sales, partly offset by asset impairment on
loss-making stores. There were weaker performances by other banners
which were more affected by COVID-19. JEC delivered good profit
growth. Its Hong Kong operations saw stable performance, but some
of the regional businesses had a difficult year. Gammon had a good
year, with a profit contribution of US$38 million, 7% higher than
last year, mainly due to the timing of project completions. The
order book remains healthy, boosted by securing some large civil
projects at Hong Kong International Airport. HACTL's performance
was better than last year, due to an 8% increase in cargo
throughput and productivity improvements.
Jardine Schindler saw lower profits, with underperformance in
most countries, in particular softer sales and margins in its New
Installation business. Jardine Aviation Services delivered an
overall loss. Its performance was impacted by the very low flight
volumes resulting from the ongoing challenges to the aviation
sector, and the business also incurred operational efficiency
costs.
All Jardine Pacific businesses benefitted from the receipt of
government support, which enabled them to take steps to preserve
employment.
Under other interests, Greatview reported good sales growth. Its
China business remained resilient, while its international business
benefitted from the group's ongoing market and customer
rationalisation strategy. The disposal of JTH was completed with
the sale of Innovix in September 2020.
Jardine Motors
The Group's Motors business produced higher underlying net
profit in 2020 of US$214 million, a 9% increase, benefitting from a
higher contribution from the investment in Zhongsheng in respect of
the second half of 2019 and the first half of 2020. There was also
a higher contribution from Zung Fu on the Chinese mainland, which
delivered better performance in car sales - benefitting from a
rapid recovery in demand from the second quarter onwards - and also
implemented cost mitigation measures.
The Hong Kong business saw a lower underlying performance and
difficult market conditions continued in the United Kingdom as a
result of the pandemic, which led to the temporary closure of
dealerships and lower demand.
Businesses held by the Company
Hongkong Land
Hongkong Land delivered underlying profit of US$963 million, 11%
lower than the prior year. Performance was negatively impacted by
COVID-19, particularly in relation to retail rent relief in the
Investment Properties business and a lower contribution from
Development Properties as a result of fewer planned residential
completions. On the Chinese mainland, however, sentiment in the
group's markets has recovered to pre-pandemic levels.
There was a loss attributable to shareholders of US$2,647
million, reflecting net losses of US$3,611 million due to lower
valuations of Investment Properties. This compares to a profit
attributable to shareholders of US$198 million in 2019, which
included net revaluation losses of US$878 million.
The group's balance sheet remains strong and it remains
well-financed, with net debt of US$4.6 billion at the year end, up
from US$3.6 billion at the end of 2019 - primarily due to the
acquisition of the West Bund site - and with net gearing of 13% at
the year end, up from 9% at the end of 2019.
Investment Properties
In Hong Kong, office leasing activity in Central was largely
subdued as a result of economic uncertainties brought about by the
pandemic. However, as a result of the group's active lease
management in recent years, the group's Central office portfolio
performed relatively well amidst the current market downturn.
Rental reversions were broadly neutral, and average rents rose
slightly. Singapore saw lower vacancy, positive rental reversions
and increased rents.
Retail market sentiment in Hong Kong was severely impacted by
the pandemic and resulting travel restrictions, although there were
modest improvements in the second half of the year. The
contribution from the group's retail portfolio was lower, mainly
due to the provision of rent relief. In Beijing, WF CENTRAL
experienced a significant decline in tenant sales and footfall in
the first half of the year due to the pandemic, but trading
performance in the second half of the year recovered to
pre-pandemic levels buoyed by the strong recovery in luxury retail
spending on the Chinese mainland.
Development Properties
The Development Properties division was impacted by varying
levels of disruption across the Chinese mainland due to the
temporary suspension of sales and development activities, with full
year performance affected by construction delays which led to fewer
planned residential completions. There were also construction
delays in Singapore. Sentiment on the Chinese mainland has,
however, recovered to pre-pandemic levels.
Planning and development of the West Bund site in Shanghai are
proceeding on schedule. The acquisition provides an attractive
opportunity to develop and operate a commercial complex of scale in
line with Hongkong Land's long-term strategy. The project mainly
comprises office and retail space, with a developable area of 1.1
million sq. m. and will be developed in five phases to 2027.
The project will be jointly developed with a strategic investor
headquartered on the Chinese mainland and a government-held SPV
(special purpose vehicle). The group will maintain a 43% interest
in the joint venture.
Hongkong Land participated in a number of land auctions on the
Chinese mainland during the year, but it remained difficult to
secure new sites due to a highly competitive primary land market.
The group did, however, secure a wholly-owned, predominantly
residential project in Chongqing.
During the year the group continued to focus on addressing
changes in customer behaviours, and the need to adapt and align to
new situations resulting from COVID-19, and it is continuing to add
to its suite of digital services and flexible spaces that are
available to tenants and customers.
In November 2020, the group launched its multi-year Hongkong
Land Home Fund, which was initiated to focus on creating
initiatives that benefit younger generations and the group's
aspiration to foster a more inclusive society. Initiatives financed
by the Fund will be launched in the coming months. The group
received the 'Sustainability Achievement of the Year' award at the
RICS Awards 2020 in Hong Kong in relation to its management of the
Hong Kong Central Portfolio.
Dairy Farm
Dairy Farm's underlying profit for the year was US$276 million,
14% lower than last year.
Grocery Retail
There was a good performance by Grocery Retail, which saw higher
contributions from Hong Kong, Singapore, Malaysia and Taiwan.
Profit growth was driven by the benefits realised from improvement
programmes, strong like-for-like sales growth and government
support. The performance of the business in Indonesia was
significantly impacted by pandemic-related movement restrictions,
which reduced hypermarket custom.
Home Furnishings
IKEA delivered good profit growth, mainly in Hong Kong and
Taiwan, with new store openings and strong e-commerce growth
offsetting pandemic-related disruptions. The business also
benefitted from lower cost of goods, strong cost controls, reduced
pre-opening expenses and government support. IKEA has a strong
development pipeline, with two new stores to open in 2021.
Health and Beauty
There was a significantly lower contribution from Dairy Farm's
Health and Beauty business, with Mannings in North Asia severely
impacted by low tourist traffic. The business has implemented price
investment and cost management initiatives in order to address the
challenges it faces.
Convenience
The group's Convenience business saw profits reduced by lower
sales and a sales mix shift to lower margin products.
Associates
The performance of 50%-owned Maxim's was badly impacted by
pandemic-related restrictions, which led to reduced visits to
stores and some store closures.
Dairy Farm's 20.1%-owned associate Yonghui performed well, with
strong sales and profit growth in the first half.
The launch of the yuu rewards programme at the end of July 2020
represents a critical milestone in driving Dairy Farm's
modernisation and digital transformation. yuu will support a more
customer-centric approach across all the Dairy Farm banners and
drive an enhanced level of customer engagement.
During the period, Dairy Farm also launched Meadows, its new
own-brand offering, in Hong Kong, Singapore and Malaysia. Over 600
items have already been launched across banners and markets at
lower prices. There has been a very positive reaction from
customers. The future growth of the group's own-brand offering will
allow it to leverage scale and help it to gain competitive
advantage.
Dairy Farm's multi-year transformation programme to reshape and
reorganise the business, adapting to the changing needs of
customers, continued to gain momentum during 2020. Opportunities
continue to be unlocked across the group as the business seeks to
leverage its scale effectively and develop a more coherent approach
to improving its customer proposition, both by banner and at a
country level. The group's space optimisation plan, new store
formats and improvement programmes generated greater efficiencies
and delivered tangible benefits in the year.
Mandarin Oriental
Mandarin Oriental moved from an underlying profit of US$41
million in 2019 to an underlying loss of US$206 million in 2020, as
all hotels were severely impacted by COVID-19.
Government actions to curtail the pandemic drastically reduced
both international and domestic travel in 2020. Many countries
imposed significant restrictions on freedom of movement and on
hospitality operations.
Against this background, combined total revenue of the group's
hotels under management fell by 55% in 2020 compared to 2019 and
the group's profitability was severely impacted.
A US$31 million impairment of the carrying value of the Geneva
hotel occurred during the year, following a significant decrease in
the market value of the leasehold interest. In addition, there was
a 15% decrease in the valuation of the Causeway Bay redevelopment
(previously the site of The Excelsior hotel in Hong Kong). The
redevelopment, net of future construction costs, was valued at some
US$2.5 billion, a decrease of US$475 million during the year.
Extensive cost reductions were implemented from early in the
year, including a 33% reduction in payroll costs through a
combination of measures, including furlough, unpaid leave, reduced
pay and redundancies. Substantial reductions in non-payroll costs
were also achieved. Many of these measures are continuing. Results
benefitted from government financial support in some countries.
Trading conditions remain extremely challenging and the group's
performance will not substantially improve until travel
restrictions are relaxed. An underlying loss is expected to be
reported for the first half of 2021.
In Asia, most hotels were able to remain operational through the
year, albeit with sharply reduced occupancy due to constraints on
travel. There was, however, a recovery in the second half of the
year for hotels on the Chinese mainland. In Europe and America,
hotels closed for much of the second quarter, with most reopening
thereafter. The relaxation of restrictions on travel allowed some
recovery in business levels. A resurgence in COVID-19 cases towards
the end of the year, however, brought back many, even stricter,
restrictions. The group's managed hotels in resort locations, such
as Dubai and Bodrum, performed well when travel conditions
permitted.
The group's development pipeline remains strong, with many
projects at an advanced stage. The group took over the management
of the Emirates Palace in Abu Dhabi at the beginning of 2020 and
the Al-Faisaliah in Riyadh in March 2021, increasing the total
number of hotels under operation to 34. New management contracts
were signed and announced in 2020 in respect of Zurich and Vienna.
In 2021, a new resort location was announced in Da Nang, Vietnam.
The recently restored Mandarin Oriental Ritz, Madrid, in which the
group has a 50% interest, and the Mandarin Oriental Bosphorus,
Istanbul are expected to open in the first half of this year.
Jardine Cycle & Carriage
JC&C's underlying profit attributable to shareholders was
50% lower than the same period last year at US$429 million. After
accounting for non-trading items, profit attributable to
shareholders was US$540 million, 39% lower than the same period
last year. Non-trading items in 2020 included a US$188 million gain
on the disposal of Astra's investment in Permata Bank and US$109
million unrealised fair value gains related to non-current
investments. These were partly offset by an impairment loss of
US$182 million in respect of the group's investment in Siam City
Cement, reflecting several years of challenging market
conditions.
Astra's contribution to the group's underlying profit of US$309
million was 57% down from the previous year. There were weaker
performances from its automotive, financial services, and heavy
equipment and mining divisions.
The underlying profit from Direct Motor Interests was 78% lower
at US$14 million, mainly due to lower contributions from Cycle
& Carriage Singapore and Tunas Ridean in Indonesia.
Other Strategic Interests contributed an underlying profit of
US$120 million, down 5% from the previous year.
Direct Motor Interests
Direct Motor Interests faced challenging trading conditions
during the year. Cycle & Carriage Singapore saw lower sales and
weaker margins. Passenger car sales and market share both fell. In
Indonesia, Tunas Ridean's automotive business saw reduced sales,
while its consumer finance operations were adversely impacted by
lower lending volumes and increased loan provisioning. Cycle &
Carriage Bintang in Malaysia contributed a lower loss than the
prior year, with improved sales in the second half of the year due
to a sales tax reduction, as well as cost savings initiatives.
Other Strategic Interests
Under Other Strategic Interests, Thaco saw a lower underlying
performance than last year. Its automotive business provided a
lower contribution due to reduced margins, attributable mainly to
difficult market conditions in the first half of the year as a
result of the pandemic, partly offset by higher unit sales. Thaco's
real estate business saw better performance than the previous year,
as sales resumed on the back of a market recovery, while its new
venture in the agriculture sector contributed a loss.
Siam City Cement's contribution was higher than the previous
year, with margins benefitting from improved operational
efficiencies, which helped to offset a decline in sales.
There was a higher contribution from REE, due to a stronger
performance from the real estate business and the effect of an
increase in JC&C's shareholding to 29.8%, partly offset by
weaker performances from its hydropower investments and its M&E
business.
The group's investment in Vinamilk delivered slightly higher
dividend income of US$37 million. Vinamilk's export business
continued to grow while its domestic dairy segment remained
relatively stable.
Astra
Astra's net profit for 2020 under Indonesian accounting
standards, including the gain from the sale of the group's
investment in Permata Bank, was Rp16.2 trillion, equivalent to
US$1.1 billion, 26% lower than 2019. Excluding this one-off gain,
the group's net income would have decreased by 53% to Rp10.3
trillion (equivalent to US$0.7 billion) , primarily due to weaker
performances by its automotive, heavy equipment and mining, and
financial services divisions, as a result of the impact of the
pandemic and related containment measures.
Automotive
Net income from Astra's automotive division decreased by 68% to
US$185 million, reflecting a significant drop in sales volume.
After suffering a net loss in the second quarter, the automotive
division saw a return to profitability in the second half of the
year following the partial easing of pandemic containment measures.
The wholesale market for cars declined by 48% in 2020 and Astra's
car sales were 50% lower, reflecting a slight decline in its market
share.
The wholesale market for motorcycles declined by 44% and Astra
Honda Motor's sales decreased by 41%, with an increased market
share. Astra Otoparts saw a decrease in net income, mainly due to
lower revenues from the original equipment manufacturer,
replacement market and export segments.
Financial Services
Net income from the group's financial services division
decreased by 44% to US$226 million in 2020, primarily due to
increased provisions to cover higher non-performing loans in the
consumer and heavy equipment-focused finance businesses. The
consumer finance businesses saw a 23% decrease in new amounts
financed. There was a 46% decrease in the contribution from the
group's car-focused finance companies and a fall of 42% in the
contribution from its motorcycle-focused business.
Astra's heavy equipment-focused finance operations saw a 17%
decrease in new amounts financed to US$246 million. The net income
contribution from this segment decreased by 59%.
General insurance company Asuransi Astra Buana reported a 16%
decrease in net income, mainly caused by lower underwriting income.
In November, the group acquired a further 49.99% of PT Astra Aviva
Life (now PT Asuransi Jiwa Astra) from Aviva International Holdings
Limited, bringing its ownership to 99.99%.
Astra completed the sale of Permata Bank in May 2020 for a
consideration of US$1.1 billion.
Heavy Equipment, Mining and Construction
Net income from Astra's heavy equipment, mining and construction
division decreased by 49% to US$234 million, mainly due to lower
heavy equipment sales and mining contracting volume caused by
weaker coal prices for most of the year. Komatsu heavy equipment
sales fell by 47%, while parts and service revenues were also
lower.
Mining contractor Pamapersada Nusantara recorded 17% lower
overburden removal volume and 13% lower coal production. United
Tractors' coal mining subsidiaries achieved 9% higher coal sales,
but their performance was affected by lower coal prices. Agincourt
Resources reported 22% lower gold sales at 320,000 oz.
General contractor Acset Indonusa reported a net loss of US$90
million, mainly due to the slowdown of several ongoing projects and
reduced project opportunities during the pandemic. In September
2020, the company raised US$102 million from a rights issue to
reduce debt and strengthen its capital structure. United Tractors'
ownership of Acset increased from 50.1% to 64.8% as a result.
Agribusiness
Net income from the group's agribusiness division was US$45
million, significantly higher than 2019, mainly due to higher crude
palm oil prices, which rose by 28%. Crude palm oil and derivatives
sales fell by 14%.
Infrastructure and Logistics
Astra's infrastructure and logistics division saw its net income
fall significantly from
US$21 million to US$3 million in 2020, due to lower toll road
revenues and lower operating margin in Serasi Autoraya. The group's
toll road concessions experienced a 12% fall in traffic volume.
Serasi Autoraya's net income decreased by 55%, mainly due to lower
operating margins in its car rental business and lower used car
sales, despite a slight increase in the number of vehicles under
contract.
In November, the group acquired Jakarta Marga Jaya, which owns a
35% stake in Marga Lingkar Jakarta, the operator of the 7.7km Kebon
Jeruk-Ulujami toll road, part of the Jakarta Outer Ring Road I.
Information Technology
Net income from the group's information technology division was
81% lower at US$2 million, primarily due to lower revenues in the
document solution and office service businesses of Astra
Graphia.
Property
Net income from the group's property division increased slightly
to US$6 million, mainly as a result of higher occupancy at Menara
Astra and earnings recognised from its Asya Residences development
project.
Outlook
High levels of uncertainty remain in respect of this year, given
the continuing impact of the pandemic. The Group's performance in
the first part of 2021 is expected to be affected in particular by
the continuing headwinds faced by our businesses in Southeast Asia
and the ongoing low levels of Chinese mainland and other visitors
to Hong Kong. There is continued robust economic activity on the
Chinese mainland, but it is uncertain whether this will be
maintained. It remains too soon to predict what the impact of the
pandemic will be on the Group's performance for the full year.
However, we remain confident in our long-term strategy, rooted in
the growth markets of Asia, and we will continue to focus on our
core priorities of driving operational excellence, evolving the
Group's portfolio and finding new growth opportunities, in order to
deliver long-term value.
John Witt
Managing Director
Jardine Strategic Holdings Limited
Consolidated Profit and Loss Account
for the year ended 31st December
2020
2020 2019
Underlying Non- Underlying Non-
business trading business trading
performance items Total performance items Total
US$m US$m US$m US$m US$m US$m
Revenue (note 2) 25,778 - 25,778 32,665 - 32,665
Net operating costs (note
3) (23,709) 526 (23,183) (28,930) 39 (28,891)
Change in fair value
of investment properties - (3,915) (3,915) - (915) (915)
----------- ------- -------- ----------- ------- --------
Operating profit/(loss) 2,069 (3,389) (1,320) 3,735 (876) 2,859
Net financing charges
* financing charges (612) - (612) (751) - (751)
* financing income 229 - 229 221 - 221
(383) - (383) (530) - (530)
Share of results of Jardine
Matheson (note 4) 182 216 398 187 946 1,133
Share of results of associates
and joint ventures (note
5)
----------- ------- -------- ----------- ------- --------
* before change in fair value of investment properties 740 (268) 472 1,108 12 1,120
* change in fair value of investment properties - (177) (177) - (11) (11)
740 (445) 295 1,108 1 1,109
Profit/(loss) before
tax 2,608 (3,618) (1,010) 4,500 71 4,571
Tax (note 6) (437) 2 (435) (902) (18) (920)
----------- ------- -------- ----------- ------- --------
Profit/(loss) after tax 2,171 (3,616) (1,445) 3,598 53 3,651
----------- ------- -------- ----------- ------- --------
Attributable to:
Shareholders of the Company
(notes 7 & 9) 1,094 (1,957) (863) 1,681 497 2,178
Non-controlling interests 1,077 (1,659) (582) 1,917 (444) 1,473
----------- ------- -------- ----------- ------- --------
2,171 (3,616) (1,445) 3,598 53 3,651
----------- ------- -------- ----------- ------- --------
US$ US$ US$ US$
Earnings/(loss) per share
(note 8)
- basic 1.96 (1.54) 2.98 3.86
- diluted 1.96 (1.54) 2.98 3.86
----------- -------- ----------- --------
Jardine Strategic Holdings Limited
Consolidated Statement of Comprehensive Income
for the year ended 31st December 2020
2020 2019
US$m US$m
(Loss)/profit for the year (1,445) 3,651
Other comprehensive income/(expense)
Items that will not be reclassified
to profit or loss:
-----
Remeasurements of defined benefit plans 8 (8)
Net revaluation surplus before transfer
to
investment properties
* right-of-use assets - 2,943
Tax on items that will not be reclassified (3) 4
5 2,939
Share of other comprehensive income
of
Jardine Matheson 6 12
Share of other comprehensive expense
of
associates and joint ventures (9) (13)
------- -----
2 2,938
Items that may be reclassified subsequently
to profit
or loss:
Net exchange translation differences
------- -----
- net gain arising during the year 658 486
- transfer to profit and loss (247) 3
411 489
Revaluation of other investments at
fair value through
other comprehensive income
------- -----
- net gain arising during the year 19 20
- transfer to profit and loss (4) (1)
15 19
Cash flow hedges
------- -----
- net loss arising during the year (69) (93)
- transfer to profit and loss 5 (4)
(64) (97)
Tax relating to items that may be reclassified 12 29
Share of other comprehensive income
of
Jardine Matheson 45 74
Share of other comprehensive income
of
associates and joint ventures 263 211
------- -----
682 725
Other comprehensive income for the year,
net of tax 684 3,663
------- -----
Total comprehensive (expense)/income
for the year (761) 7,314
------- -----
Attributable to:
Shareholders of the Company (363) 4,872
Non-controlling interests (398) 2,442
------- -----
(761) 7,314
------- -----
Jardine Strategic Holdings Limited
Consolidated Balance Sheet
at 31st December 2020
At 31st December
2020 2019
US$m US$m
Assets
Intangible assets 2,533 2,693
Tangible assets 6,328 6,841
Right-of-use assets 4,049 4,406
Investment properties 33,259 36,817
Bearer plants 497 503
Investment in Jardine Matheson 3,581 3,703
Associates and joint ventures 16,200 15,288
Other investments 2,895 2,675
Non-current debtors 3,009 3,023
Deferred tax assets 439 415
Pension assets 6 2
-------- --------
Non-current assets 72,796 76,366
-------- --------
Properties for sale 2,339 2,441
Stocks and work in progress 2,106 2,811
Current debtors 6,152 7,424
Current investments 60 29
Current tax assets 157 252
Bank balances and other liquid
funds
-------- --------
- non-financial services companies 8,269 5,346
- financial services companies 402 256
8,671 5,602
-------- --------
Assets classified as held for sale 19,485 18,559
55 -
-------- --------
Current assets 19,540 18,559
-------- --------
Total assets 92,336 94,925
-------- --------
Equity
Share capital 56 56
Share premium and capital reserves 941 941
Revenue and other reserves 36,518 37,054
Own shares held (2,325) (2,294)
-------- --------
Shareholders' funds 35,190 35,757
Non-controlling interests 28,700 29,903
-------- --------
Total equity 63,890 65,660
-------- --------
Liabilities
Long-term borrowings
-------- --------
- non-financial services companies 8,444 6,976
- financial services companies 1,246 1,697
9,690 8,673
Non-current lease liabilities 2,640 2,842
Deferred tax liabilities 676 767
Pension liabilities 405 364
Non-current creditors 365 356
Non-current provisions 296 289
-------- --------
Non-current liabilities 14,072 13,291
-------- --------
Current creditors 7,361 8,287
Current borrowings
-------- --------
- non-financial services companies 3,835 4,368
- financial services companies 1,930 1,853
5,765 6,221
Current lease liabilities 747 795
Current tax liabilities 335 507
Current provisions 166 164
-------- --------
Current liabilities 14,374 15,974
-------- --------
Total liabilities 28,446 29,265
-------- --------
Total equity and liabilities 92,336 94,925
-------- --------
Jardine Strategic
Holdings Limited
Consolidated Statement of
Changes
in Equity
for the year ended 31st
December 2020
Attributable
to Attributable
Contributed Asset Own shareholders to
Share Share Capital Revenue surplus revaluation Hedging Exchange shares of the non-controlling Total
capital premium reserves reserves US$m reserves reserves reserves held Company interests equity
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
2020
At 1st January 56 816 125 36,085 304 2,566 (27) (1,874) (2,294) 35,757 29,903 65,660
Total
comprehensive
expense - - - (841) - - (41) 519 - (363) (398) (761)
Dividends paid
by the Company
(note 10 ) - - - (199) - - - - - (199) - (199)
Dividends paid
to
non-controlling
interests - - - - - - - - - - (785) (785)
Unclaimed
dividends
forfeited - - - 1 - - - - - 1 - 1
Employee share
option schemes - - 1 - - - - - - 1 - 1
Scrip issued in
lieu of
dividends - - - 6 - - - - - 6 - 6
Increase in own
shares held - - - - - - - - (31) (31) - (31)
Subsidiaries
disposed of - - - - - - - - - - (13) (13)
Capital
contribution
from
non-controlling
interests - - - - - - - - - - 39 39
Change in
interests in
subsidiaries - - - 19 - - - - - 19 (46) (27)
Change in
interests in
associates
and joint
ventures - - - (1) - - - - - (1) - (1)
Transfer - - (1) 1 - - - - - - - -
------- ------- --------- --------- ------------- ------------ --------- --------- ------- ------------- ---------------- --------
At 31st December 56 816 125 35,071 304 2,566 (68) (1,355) (2,325) 35,190 28,700 63,890
------- ------- --------- --------- ------------- ------------ --------- --------- ------- ------------- ---------------- --------
2019
At 1st January 56 816 209 33,996 304 264 (13) (2,261) (2,139) 31,232 28,342 59,574
Total
comprehensive
income - - - 2,197 - 2,302 (14) 387 - 4,872 2,442 7,314
Dividends paid
by the Company
(note 10 ) - - - (195) - - - - - (195) - (195)
Dividends paid
to
non-controlling
interests - - - - - - - - - - (905) (905)
Unclaimed
dividends
forfeited - - - 1 - - - - - 1 - 1
Employee share
option schemes - - 2 - - - - - - 2 - 2
Scrip issued in
lieu of
dividends - - - 6 - - - - - 6 - 6
Increase in own
shares held - - - - - - - - (155) (155) - (155)
Subsidiaries
acquired - - - - - - - - - - 14 14
Capital
contribution
from
non-controlling
interests - - - - - - - - - - 18 18
Change in
interests in
subsidiaries - - - (7) - - - - - (7) (8) (15)
Change in
interests in
associates
and joint
ventures - - - 1 - - - - - 1 - 1
Transfer - - (86) 86 - - - - - - - -
------- ------- --------- --------- ------------- ------------ --------- --------- ------- ------------- ---------------- --------
At 31st December 56 816 125 36,085 304 2,566 (27) (1,874) (2,294) 35,757 29,903 65,660
------- ------- --------- --------- ------------- ------------ --------- --------- ------- ------------- ---------------- --------
Contributed surplus represents the excess in value of shares acquired in consideration for the issue of
the Company's shares, over the nominal value of those shares issued. Under the Bye-Laws of the Company,
the contributed surplus is distributable.
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
Jardine Strategic Holdings Limited
Consolidated Cash Flow Statement
for the year ended 31st December 2020
2020 2019
US$m US$m
Operating activities
------- -------
Cash generated from operations 5,413 4,728
Interest received 189 180
Interest and other financing charges paid (664) (744)
Tax paid (751) (927)
------- -------
4,187 3,237
Dividends from Jardine Matheson 734 734
Dividends from associates and joint ventures 506 992
Cash flows from operating activities 5,427 4,963
Investing activities
------- -------
Purchase of subsidiaries (note 11(a)) (73) (28)
Purchase of associates and joint ventures
(note 11(b)) (206) (1,088)
Purchase of other investments (note 11(c)) (494) (409)
Purchase of intangible assets (122) (216)
Purchase of tangible assets (593) (1,129)
Additions to right-of-use assets (18) (60)
Additions to investment properties (note
11(d)) (4,645) (168)
Additions to bearer plants (35) (44)
Advance to and repayment to associates and
joint ventures (note 11(e)) (725) (1,025)
Advance from and repayment from associates
and joint ventures (note 11(f)) 1,437 920
Sale of subsidiaries (note 11(g)) 2,806 -
Sale of associates and joint ventures (note
11(h)) 1,138 3
Sale of other investments (note 11(i)) 445 450
Sale of intangible assets 1 -
Sale of tangible assets 43 61
Sale of right-of-use assets - 3
Cash flows from investing activities (1,041) (2,730)
Financing activities
------- -------
Capital contribution from non-controlling
interests 39 18
Change in interests in subsidiaries (note
11(j)) (27) (15)
Drawdown of borrowings 6,834 7,336
Repayment of borrowings (6,321) (6,454)
Principal elements of lease payments (851) (893)
Dividends paid by the Company (387) (376)
Dividends paid to non-controlling interests (785) (905)
Cash flows from financing activities (1,498) (1,289)
------- -------
Net increase in cash and cash equivalents 2,888 944
Cash and cash equivalents at 1st January 5,583 4,555
Effect of exchange rate changes 150 84
------- -------
Cash and cash equivalents at 31st December 8,621 5,583
------- -------
Jardine Strategic 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
2020 which have been prepared in conformity with International
Financial Reporting Standards, including International Accounting
Standards and Interpretations adopted by the International
Accounting Standards Board.
The Group has elected to early adopt the 'Interest Rate
Benchmark Reform - Phase 1: Amendments to IFRS 9, IAS 39 and IFRS
7' (effective 1st January 2020) in relation to hedge accounting for
the Group's annual reporting period commencing 1st January
2019.
The Group has adopted the following changes in relation to rent
concessions for the annual reporting period commencing 1st January
2020.
COVID-19 Related Rent Concessions: Amendment to IFRS 16
Leases
The Group has early adopted the Amendment, which was effective
1st June 2020. Where the Group is a lessee, the practical expedient
is applied to account for the change in lease payments resulting
from rent concessions granted as a direct consequence of the
COVID-19 pandemic and elects not to assess these concessions as
lease modifications when all of the following conditions are
met:
(i) the revised lease payments are substantially the same as, or
less than, the consideration for the lease immediately preceding
the change;
(ii) reduction in lease payments relates to payment due on or
before 30th June 2021; and
(iii) there is no substantive change to the other terms and
conditions of the lease.
Rent concessions fulfilling the above conditions are recognised
in the profit and loss over the period in which they cover.
Apart from the above, there are no other amendments which are
effective in 2020 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
Gross revenue Revenue
2020 2019 2020 2019
US$m US$m US$m US$m
By business:
Jardine Matheson 29,097 29,728 - -
Hongkong Land 4,948 4,437 2,094 2,320
Dairy Farm 28,159 27,665 10,269 11,192
Mandarin Oriental 298 908 184 567
Jardine Cycle & Carriage 6,189 6,958 1,269 1,788
Astra 22,388 33,887 11,965 16,803
Intersegment transactions (173) (275) (3) (5)
------------ ------------- ------------ ------------
90,906 103,308 25,778 32,665
------------ ------------- ------------ ------------
Gross revenue comprises revenue together with 100% of revenue
from Jardine Matheson, associates and joint ventures.
3. Net Operating Costs
2020 2019
US$m US$m
Cost of sales (18,719) (23,816)
Other operating income 1,363 712
Selling and distribution costs (3,547) (3,583)
Administration expenses (1,981) (2,109)
Other operating expenses (299) (95)
--------- --------
(23,183) (28,891)
--------- --------
In relation to the COVID-19 pandemic, the Group had received
government grants, the majority of which were in support
of employee retention, and rent concessions of US$189 million
and US$72 million, respectively, for the year ended 31st
December 2020. These subsidies were accounted for as other
operating income.
Net operating costs included the following
gains/(losses) from non-trading items:
Change in fair value of other investments 144 75
Sale and closure of other businesses 494 -
Asset impairment (65) -
Sale of property interests - 16
Restructuring of businesses (59) (15)
Reclassification of joint ventures as
subsidiaries 10 (14)
Closure of a hotel - (32)
Other 2 9
526 39
--------- --------
4. Share of Results of Jardine Matheson
2020 2019
US$m US$m
By business:
Jardine Pacific 330 159
Jardine Motors 44 59
Corporate and other interests 24 915
398 1,133
----- -----
Share of results of Jardine Matheson included
the following gains/(losses) from non-trading
items:
Change in fair value of investment properties 258 48
Change in fair value of other investments (1) (2)
Sale of Jardine Lloyd Thompson - 874
Sale and closure of other businesses (45) 24
Sale of property interests 6 -
Restructuring of businesses (2) -
Other - 2
216 946
----- -----
Results are shown after tax and non-controlling interests in
Jardine Matheson.
In relation to the COVID-19 pandemic, included in share of
results of Jardine Matheson were the Group's share of the
government grants, the majority of which were in support of
employee retention, and rent concessions of US$63 million and US$2
million, respectively, for the year ended 31st December 2020.
5. Share of Results of Associates and Joint Ventures
2020 2019
US$m US$m
By business:
Jardine Matheson 80 128
Hongkong Land 92 240
Dairy Farm 85 126
Mandarin Oriental (27) (2)
Jardine Cycle & Carriage (99) 128
Astra 199 494
Corporate and other interests (35) (5)
295 1,109
----- -----
Share of results of associates and joint
ventures included the following gains/(losses)
from non-trading items:
Change in fair value of investment properties (177) (11)
Change in fair value of other investments 9 (1)
Asset impairment (275) -
Sale of businesses - 12
Other (2) 1
(445) 1
----- -----
Results are shown after tax and non-controlling interests in the
associates and joint ventures.
In relation to the COVID-19 pandemic, included in share of
results of associates and joint ventures were the Group's share of
the government grants, the majority of which were in support of
employee retention, and rent concessions of US$80 million and US$29
million, respectively, for the year ended 31st December 2020.
6. Tax
2020 2019
US$m US$m
Tax charged to profit and loss is analysed
as follows:
Current tax (550) (935)
Deferred tax 115 15
----- -----
(435) (920)
----- -----
China (164) (291)
Southeast Asia (274) (607)
United Kingdom 3 (3)
Rest of the world - (19)
----- -----
(435) (920)
----- -----
Tax relating to components of other comprehensive
income is analysed as follows:
Remeasurements of defined benefit plans (3) 4
Cash flow hedges 12 29
9 33
----- -----
Tax on profits has been calculated at rates of taxation
prevailing in the territories in which the Group operates.
Share of tax charge of Jardine Matheson of US$30 million (2019:
US$21 million) is included in share of results of Jardine Matheson.
No tax charge (2019: US$2 million) is included in other
comprehensive income of Jardine Matheson.
Share of tax charge of associates and joint ventures of US$288
million (2019: US$409 million) is included in share of results of
associates and joint ventures. Share of tax credit of US$10 million
(2019: US$18 million) is included in other comprehensive income of
associates and joint ventures.
7. Profit attributable to Shareholders
2020 2019
US$m US$m
Operating segments:
Jardine Matheson 330 314
Hongkong Land 485 542
Dairy Farm 214 248
Mandarin Oriental (162) 32
Jardine Cycle & Carriage 75 99
Astra 232 537
------- -----
1,174 1,772
Corporate and other interests (80) (91)
------- -----
Underlying profit attributable to shareholders* 1,094 1,681
Decrease in fair value of investment properties (1,934) (447)
Sale of Jardine Lloyd Thompson - 874
Other non-trading items (23) 70
------- -----
(Loss)/profit attributable to shareholders (863) 2,178
------- -----
* Underlying profit attributable to shareholders is the measure
of profit adopted by the Group in accordance with IFRS 8
'Operating Segments'.
8. Earnings/(Loss) per Share
Basic earnings/(loss) per share are calculated on loss
attributable to shareholders of US$863 million (2019: profit of
US$2,178 million) and on the weighted average number of 559 million
(2019: 564 million) shares in issue during the year.
Diluted earnings/(loss) per share are calculated on loss
attributable to shareholders of US$863 million (2019: profit of
US$2,177 million), which is after adjusting for the effects of the
conversion of dilutive potential ordinary shares of Jardine
Matheson, subsidiaries, associates or joint ventures, and on the
weighted average number of 559 million (2019: 564 million) shares
in issue during the year.
The weighted average number of shares is arrived at as
follows:
Ordinary shares
in millions
2020 2019
Weighted average number of shares in issue 1,108 1,108
Company's share of shares held by Jardine
Matheson (549) (544)
---------------- ---------------
Weighted average number of shares for
earnings per share calculation 559 564
---------------- ---------------
Additional basic and diluted earnings per share are also
calculated based on underlying loss attributable to shareholders. A
reconciliation of earnings is set out below:
2020 2019
Basic Diluted
(loss)/ (loss)/ Basic Diluted
earnings earnings earnings earnings
per share per share per share per share
US$m US$ US$ US$m US$ US$
(Loss)/profit attributable
to shareholders (863) (1.54) (1.54) 2,178 3.86 3.86
Non-trading items (note
9) 1,957 (497)
----- -----
Underlying profit
attributable
to shareholders 1,094 1.96 1.96 1,681 2.98 2.98
----- -----
9. Non-trading items
Non-trading items are separately identified to provide greater
understanding of the Group's underlying business performance. Items
classified as non-trading items include fair value gains or losses
on revaluation of investment properties and equity 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.
2020 2019
US$m US$m
By business:
Jardine Matheson 149 947
Hongkong Land (1,820) (443)
Dairy Farm (4) 2
Mandarin Oriental (372) (76)
Jardine Cycle & Carriage (58) 11
Astra 141 3
Corporate and other interests 7 53
(1,957) 497
------- -----
An analysis of non-trading items after
interest, tax and non-controlling interests
is set out below:
Change in fair value of investment properties
------- -----
- Hongkong Land (1,820) (460)
- other (114) 13
(1,934) (447)
Change in fair value of other investments 119 61
Asset impairment (263) -
Sale of Jardine Lloyd Thompson - 874
Sale and closure of other businesses 155 33
Sale of property interests 5 12
Restructuring of businesses (42) (10)
Reclassification of joint ventures as
subsidiaries 4 (11)
Closure of a hotel - (22)
Other (1) 7
(1,957) 497
------- -----
Asset impairment in 2020 included impairment of goodwill in
Jardine Cycle & Carriage's investment in Siam City Cement of
US$137 million.
Profit for sale and closure of other businesses in 2020 included
profit of US$141 million from sale of Astra's 44.6% interest in
Permata Bank with net proceeds of US$1,136 million.
In 2019, Jardine Matheson sold its 41% interest in Jardine Lloyd
Thompson with net proceeds of US$2.1 billion, generating a profit
on sale of US$0.9 billion to the Group.
10. Dividends
2020 2019
US$m US$m
Final dividend in respect of 2019 of USc25.00
(2018: USc24.00) per share 277 266
Interim dividend in respect of 2020 of
USc10.50
(2019: USc10.50) per share 116 116
----- -----
393 382
Company's share of dividends paid on the
shares held by Jardine Matheson (194) (187)
----- -----
199 195
----- -----
No final dividend in respect of 2020 (2019: USc25.00 per share)
is proposed by the Board.
11. Notes to Consolidated Cash Flow Statement
(a) Purchase of subsidiaries
2020 2019
Fair Fair
value value
US$m US$m
Non-current assets (106) (3)
Current assets (404) (72)
Non-current liabilities 8 8
Current liabilities 380 3
------ ------
Fair value of identifiable net assets
acquired (122) (64)
Goodwill (57) (4)
Adjustment for non-controlling interests - 14
------ ------
Total consideration (179) (54)
Adjustment for contingent consideration - 10
Payment for deferred consideration (21) -
Carrying value of associates and joint
ventures 39 15
Cash and cash equivalents of subsidiaries
acquired 88 1
------ ------
Net cash outflow (73) (28)
------ ------
For the subsidiaries acquired during 2020, 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.
The fair values of the identifiable assets and liabilities at
the acquisition dates of certain subsidiaries acquired during 2019
as included in the comparative figures were provisional. The fair
values were finalised in 2020. As the difference between the
provisional and the finalised fair values were not material, the
comparative figures have not been adjusted.
Net cash outflow for purchase of subsidiaries in 2020 included
US$21 million for Dairy Farm's payment of deferred consideration on
acquisition of a 100% interest in San Miu Supermarket Limited in
Macau in 2015; and US$44 million for Astra's acquisition of a 100%
interest in PT Jakarta Marga Jaya, a toll road business company,
and US$7 million for Astra's increased interest in PT Asuransi Jiwa
Astra, a life insurance company, from 50% to 100%.
Goodwill in 2020 mainly arose from the acquisition of PT
Asuransi Jiwa Astra of US$56 million, attributable to synergy with
Astra's existing insurance business. None of the goodwill is
expected to be deductible for tax purposes.
Revenue and loss after tax since acquisition in respect of
subsidiaries acquired during the year amounted to US$27 million and
US$1 million, respectively. Had the acquisitions occurred on 1st
January 2020, consolidated revenue and loss after tax for the year
ended 31st December 2020 would have been US$25,992 million and
US$1,446 million, respectively.
(b) Purchase of associates and joint ventures in 2020 mainly
included US$153 million for Hongkong Land's investments primarily
in the Chinese mainland, US$15 million for Dairy Farm's capital
injections into an associate for the development of e-commerce
platform to support the group's digital business; and US$24 million
for Astra's settlement of deferred consideration on acquisition of
toll road concessions in 2019.
Purchase in 2019 mainly included US$553 million for Hongkong
Land's investments primarily in the Chinese mainland; US$168
million for Jardine Cycle & Carriage's additional interest in
Truong Hai Auto Corporation; US$208 million and US$42 million for
Astra's investments in toll road concessions and capital injections
into its associates and joint ventures, respectively; and US$64
million for the Company's 20% interest in Livi Bank Limited, a
virtual bank in Hong Kong.
(c) Purchase of other investments in 2020 mainly included US$478
million for Astra's acquisition of securities. Purchases in 2019
included Astra's additional investment in Gojek and investments in
other securities of US$100 million and US$299 million,
respectively.
(d) Additions to investment properties in 2020 mainly included
US$4,485 million for Hongkong Land's acquisition of a mixed-use
site in the Xuhui District in Shanghai, Chinese mainland.
(e) Advance to and repayment to associates and joint ventures in
2020 comprised US$684 million for Hongkong Land's advance to its
property joint ventures and US$41 million for Mandarin Oriental's
shareholders' loans to its associate and joint venture hotels.
Advance to associates and joint ventures in 2019 mainly included
Hongkong Land's advance to its property joint ventures.
(f) Advance from and repayment from associates and joint
ventures in 2020 and 2019 mainly included advance from and
repayment from Hongkong Land's property joint ventures.
(g) Sale of subsidiaries
2020 2019
US$m US$m
Non-current assets 5,179 -
Current assets 190 -
Non-current liabilities (100) -
Current liabilities (131) -
Non-controlling interests (13) -
------- -----
Net assets 5,125 -
Cumulative exchange translation difference (252) -
Profit on disposal 82 -
------- -----
Sales proceeds 4,955 -
Adjustment for carrying value of a
joint venture (2,119) -
Adjustment for deferred payments 14 -
Cash and cash equivalents of subsidiaries
disposed of (44) -
------- -----
Net cash inflow 2,806 -
------- -----
Analysis of net cash inflow from sale
of subsidiaries:
Proceeds received 4,812 -
Deposits refunded (2,006) -
2,806 -
------- -----
Net cash inflow for sale of subsidiaries in 2020 included
US$2,566 million, being proceeds received of US$4,572 million net
of deposits refunded of US$2,006 million, for Hongkong Land's sale
of a 57% interest in a wholly-owned company which became a
43%-owned joint venture. The company owns a mixed-use site in Xuhui
District in Shanghai, Chinese mainland.
The remaining net cash inflow in 2020 of US$240 million included
US$47 million for Hongkong Land's sale of its entire 80% interest
in a development properties subsidiary in Vietnam; and US$109
million for Dairy Farm's sale of its entire 100% interest in
Wellcome Taiwan and US$84 million for Dairy Farm's sale of its
entire 100% interest in Rose Pharmacy to its 20%-owned associate,
Robinsons Retail Holdings, Inc.
Revenue and profit after tax in respect of subsidiaries disposed
of during the year amounted to US$613 million and US$10 million,
respectively.
(h) Sale of associates and joint ventures in 2020 mainly
included US$1,136 million for Astra's sale of its entire 44.6%
interest in Permata Bank.
(i) Sale of other investments in 2020 comprised Astra's sale of
securities. Sale in 2019 comprised US$158 million in Hongkong Land
and US$276 million in Astra.
(j) Change in interests in subsidiaries
2020 2019
US$m US$m
Increase in attributable interests
- Mandarin Oriental (25) (5)
- other (2) (10)
----- -----
(27) (15)
----- -----
12. Jardine Strategic Corporate Cash Flow
2020 2019
US$m US$m
Dividends receivable
----- -----
Subsidiaries 695 767
Jardine Matheson 734 734
Associates and joint ventures 39 34
Other holdings 10 13
1,478 1,548
Other operating cash flows (84) (108)
----- -----
Cash flows from operating activities 1,394 1,440
Investing activities
----- -----
Purchase of a joint venture - (64)
Purchase of other investments (9) (7)
Cash flows from investing activities (9) (71)
Financing activities
----- -----
Purchase of additional shares in subsidiaries (25) (5)
Dividends paid by the Company (387) (376)
Cash flows from financing activities (412) (381)
Net increase in cash 973 988
Cash at 1st January 1,762 774
----- -----
Cash at 31st December 2,735 1,762
----- -----
Represented by:
Bank balances and other liquid funds 2,735 1,762
----- -----
Corporate cash flow comprises the cash flows of the Company and
of its investment holding and financing subsidiaries.
13. Capital Commitments and Contingent Liabilities
Total capital commitments at 31st December 2020 amounted to
US$2,610 million (2019: US$2,878 million).
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.
14. Related Party Transactions
In accordance with the Bye-Laws of the Company, Jardine Matheson
Limited, a wholly-owned subsidiary of Jardine Matheson, has been
appointed General Manager of the Company under a General Manager
Agreement. With effect from 1st January 2008, Jardine Matheson
Limited has sub-delegated certain of its responsibilities under the
agreement to a fellow subsidiary. Total fees payable for services
provided to the Company in 2020 amounted to US$102 million (2019:
US$130 million).
In the normal course of business the Group undertakes a variety
of transactions with Jardine Matheson, and with certain of its
associates and joint ventures.
The most significant of such transactions relate to the
purchases of motor vehicles and spare parts from its associates and
joint ventures in Indonesia including PT Toyota-Astra Motor, PT
Astra Honda Motor and PT Astra Daihatsu Motor. Total cost of motor
vehicles and spare parts purchased in 2020 amounted to US$3,104
million (2019: US$5,446 million). The Group also sells motor
vehicles and spare parts to its associates and joint ventures in
Indonesia including PT Astra Honda Motor, PT Astra Daihatsu Motor
and PT Tunas Ridean. Total revenue from sale of motor vehicles and
spare parts in 2020 amounted to US$387 million (2019: US$664
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 Jardine Matheson,
associates and joint ventures are included in debtors and
creditors, as appropriate. A subsidiary of the Company has also
committed to provide loan facilities to a subsidiary of Jardine
Matheson. Undrawn facilities at 31st December 2020 amounted to
US$400 million (2019: US$400 million).
15. Post Balance Sheet Event
On 8th March 2021, Jardine Matheson announced a plan to simplify
the Group's parent company structure, including the acquisition for
cash of the 15% of the Company's issued share capital that Jardine
Matheson and its wholly-owned subsidiaries do not already own (the
'Acquisition'). The Acquisition will be implemented by way of an
amalgamation of the Company and a wholly-owned subsidiary of
Jardine Matheson, under the Bermuda Law. Under the terms of the
Acquisition, the Company's shareholders (other than Jardine
Matheson and its wholly-owned subsidiaries) shall be entitled to
receive US$33.00 in cash for each of the Company share they hold.
The total Acquisition value is approximately US$5.5 billion and the
Acquisition is expected to become effective in April 2021.
16. Market Value Basis Net Assets
2020 2019
US$m US$m
Jardine Matheson 13,556 8,973
Hongkong Land 4,859 6,765
Dairy Farm 4,377 5,993
Mandarin Oriental 1,706 1,799
Jardine Cycle & Carriage 4,385 6,622
Other holdings 621 610
------ ------
29,504 30,762
Jardine Strategic Corporate 2,709 1,733
------ ------
32,213 32,495
------ ------
US$ US$
Net asset value per share 58.22 57.98
------ ------
'Market value basis net assets' are calculated based on the
market price of the Company's holdings for listed companies, with
the exception of the holding in Jardine Matheson which has been
calculated by reference to the market value of US$23,909 million
(2019: US$23,738 million) less the Company's share of the market
value of Jardine Matheson's interest in the Company. For unlisted
companies a Directors' valuation has been used.
Net asset value per share is calculated on 'market value basis
net assets' of US$32,213 million (2019: US$ 32,495 million) and on
553 million (2019: 561 million) shares outstanding at the year end
which excludes the Company's share of the shares held by Jardine
Matheson of 555 million (2019: 548 million) shares.
Jardine Strategic Holdings Limited
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and
internal control. The following are the principal risks and
uncertainties facing the Company as required to be disclosed
pursuant to the Disclosure Guidance and Transparency Rules issued
by the Financial Conduct Authority of the United Kingdom and are in
addition to the matters referred to in the Chairman's Statement and
Managing Director's Review.
Economic Risk
Most of the Group's businesses are exposed to the risk of
negative 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. Such developments might increase
operating costs, reduce revenues, lower asset values or result in
some or all of the Group's businesses being unable to meet their
strategic objectives.
Commercial Risk and Financial Risk
Risks are an integral part of normal commercial activities, and
where practicable steps are taken to mitigate them. Risks can be
more pronounced when businesses are operating in volatile
markets.
A number of the Group's businesses make significant investment
decisions in respect of developments or projects and these are
subject to market risks. This is especially the case where projects
are longer-term in nature and take more time to deliver
returns.
The Group's businesses operate in sectors and regions which are
highly competitive and evolving rapidly, and failure to compete
effectively, whether in terms of price, tender terms, product
specification, application of new technologies or levels of
service, can have an adverse effect on earnings or market share.
Significant competitive pressure may also lead to reduced
margins.
It is essential for the products and services provided by the
Group's businesses to meet appropriate quality and safety standards
and there is an associated risk if they do not, including the risk
of damage to brand equity or reputation, which might adversely
impact the ability to achieve acceptable revenues and profit
margins.
The potential impact on many of our businesses of disruption to
IT systems or infrastructure, whether as a result of cyber-crime or
other factors, could be significant. There is also an increasing
risk to our businesses from adverse social media commentary, which
could influence customer and other stakeholder behaviours and
impact operations or profitability, or lead to reputational
damage.
Concessions, Franchises and Key Contracts
A number of the Group's businesses and projects are reliant on
concessions, franchises, management, outsourcing or other key
contracts. Cancellation, expiry or termination, or the
renegotiation of any such concession, franchise, management,
outsourcing or other key contracts, could have an adverse effect on
the financial condition and results of operations of certain
subsidiaries, associates and joint ventures of the Group.
Regulatory and Political Risk
The Group's businesses are subject to a number of regulatory
regimes in the territories in which they operate. Changes in such
regimes, in relation to matters such as foreign ownership of assets
and businesses, exchange controls, planning controls, emission
regulations, tax rules and employment legislation, could have the
potential to impact the operations and profitability of the Group's
businesses.
Changes in the political environment, including political or
social unrest, in the territories where the Group operates could
adversely affect the Group's businesses.
Terrorism, Pandemic and Natural Disasters
The Group's operations are vulnerable to the effects of
terrorism, either directly through the impact of an act of
terrorism or indirectly through the effect on the Group's
businesses of generally reduced economic activity in response to
the threat, or an actual act, of terrorism.
The Group businesses could be impacted by a global or regional
pandemic which seriously affects economic activity or the ability
of businesses to operate smoothly. In addition, many of the
territories in which the Group operates can experience from time to
time natural disasters such as earthquakes and typhoons.
Cybersecurity Risk
The Group's businesses are ever more reliant on technology in
their operations and face increasing numbers of cyberattacks from
groups targeting both individuals and businesses. The privacy and
security of customer and corporate information is at risk of being
compromised through a breach of our or our suppliers' IT systems or
the unauthorised or inadvertent release of information, resulting
in brand damage, impaired competitiveness or regulatory action.
Cyberattacks may also adversely affect our ability to manage our
business operations or operate information technology and business
systems, resulting in business interruption, lost revenues, repair
or other costs.
Responsibility Statement
The Directors of the Company confirm to the best of their
knowledge that:
(a) the consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards,
including International Accounting Standards and Interpretations
adopted by the International Accounting Standards Board; and
(b) the Chairman's Statement and Managing Director's Review and
the Principal Risks and Uncertainties, include a fair review of all
information required to be disclosed by the Disclosure Guidance and
Transparency Rules 4.1.8 to 4.1.11 issued by the Financial Conduct
Authority of the United Kingdom.
For and on behalf of the Board
John Witt
Y.K. Pang
Directors
About Jardine Strategic
Jardine Strategic is a holding company which makes long-term
strategic investments in multinational businesses, particularly
those with an Asian focus, and in other high quality companies with
existing or potential links with the Group. Its principal
attributable interests are in Jardine Matheson (59%), Hongkong Land
(50%), Dairy Farm (78%), Mandarin Oriental (79%) and Jardine Cycle
& Carriage (75%), which in turn has a 50% interest in Astra. It
also has minority interests in Greatview Aseptic Packaging and
Zhongsheng. Jardine Strategic is 85% held by Jardine Matheson.
The Group companies operate 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 Strategic Holdings Limited is incorporated in Bermuda
and has a standard listing on the London Stock Exchange, with
secondary listings in Bermuda and Singapore. The Company's
interests are managed from Hong Kong by Jardine Matheson
Limited.
- end -
For further information, please contact:
Jardine Matheson Limited
Matthew Bishop (852) 2843 8266
Brunswick Group Limited
Sunitha Chalam (852) 3512 5050
Full text of the Preliminary Announcement of Results and the
Preliminary Financial Statements for the year ended 31st December
2020 can be accessed through the internet at www.jardines.com.
This information is provided by RNS, the news service of the
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END
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