Jardine Matheson Holdings Limited · SGX:J36
Jardine Matheson — FY2017 Earnings Presentation
24 slides from Jardine Matheson's earnings presentation, March 2018
Slide 1: Jardine Matheson 2017 Annual Results
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Slide 2: Introduction
Introduction 2017 Annual Results The Jardine Matheson Group Overview of 2017 Financial Summary Outlook for 2018
Slide 3: Jardine Matheson Group
Jardine Matheson Group at 31st December 2017 Group JMH JSH Ownership Economic Economic Option 1 % Interest % Interest % Jardine Pacific 100 100 57 Jardine Motors 100 100 57 Jardine Lloyd Thompson 42 42 24 Jardine Strategic 84 84 - - Hongkong Land 50 42 50 - Dairy Farm 78 65 78 - Mandarin Oriental 77
Slide 4: Jardine Matheson
Jardine Matheson at 31st December 2017 US$m 2017 chg 2016 Option 1 Revenue (including 100% of associates and JVs) 83,808 16% 72,437 Revenue 39,456 6% 37,051 Underlying PBT 4,378 17% 3,729 Underlying profit 1,568 13% 1,386 Non-trading items 2,217 1,117 Profit attributable to shareholders 3,785 51% 2,
Slide 5: Overview of 2017
Overview of 2017 Jardine Matheson Good overall result Increasing contribution from mainland China Solid performance in Hong Kong Mixed performances in Southeast Asia Strategic investments in China, Vietnam, Thailand and Indonesia Exploring digital opportunities
Slide 6: Underlying Profit Contribution
Underlying Profit Contribution Jardine Matheson US$m 2017 chg 2016 Jardine Pacific Option 1 164 21% 135 Jardine Motors 184 46% 126 Jardine Lloyd Thompson 69 22% 56 Hongkong Land 406 15% 353 Dairy Farm 261 -12% 297 Mandarin Oriental 35 -2% 36 Jardine Cycle & Carriage (ex. Astra) 82 -27% 112 Astra 402
Slide 7: Non-Trading Items
Non-Trading Items Jardine Matheson US$m 2017 2016 Change in fair value ofOption investment 1 properties in Hongkong Land 1,930 1,043 Sale of property interests 194 158 Others 93 (84) 2,217 1,117
Slide 8: Balance Sheet
Balance Sheet Jardine Matheson US$m 12/2017 chg 12/2016 Total equity Option 1 57,770 16% 49,737 Shareholders’ funds 25,669 18% 21,800 NAV per share, US$* 68.21 17% 58.15 Net debt (ex financial services) (3,403) -63% (2,087) Gearing 6% 4% Net debt of financial services (3,400) 4% (3,554) * Calculated
Slide 9: Analysis of Net Debt
Analysis of Net Debt Jardine Matheson US$m 12/2017 gearing 12/2016 Jardine Pacific / Jardine Motors Option 1 164 - (226) Hongkong Land (2,548) 7% (2,008) Dairy Farm (599) 34% (641) Mandarin Oriental (327) 26% (297) Jardine Cycle & Carriage (714) 6% 800 Jardine Matheson Corporate 202 - 154 Jardine St
Slide 10: Consolidated Cash Flow (1 of 2)
Consolidated Cash Flow (1 of 2) Jardine Matheson US$m 2017 2016 Operating activities Option 1 4,298 3,967 Investing activities - Capital expenditure (5,841) (2,594)
Slide 11: Capital Expenditure & Investments
Capital Expenditure & Investments Jardine Matheson US$m 2017 2016 Capital expenditure Option 1 5,841 2,594 - Investments in and advances to associates & JVs 2,380 733 - Purchase of other investments 1,609 294 - Purchase of tangible assets 1,184 996 - Additions to investment properties 372 313 - Othe
Slide 12: Consolidated Cash Flow (2 of 2)
Consolidated Cash Flow (2 of 2) Jardine Matheson US$m 2017 2016 Operating activities Option 1 4,298 3,967 Investing activities - Capital expenditure (5,841) (2,594) - Disposals, advances and repayments from associates and JVs* 1,866 531 Financing activities (including dividends paid) 60 (1,068) Net
Slide 13: Jardine Pacific
Jardine Pacific Underlying Profit Contribution US$m 2017 chg 2016 Jardine Schindler Option 1 47 5% 44 JEC 30 7% 28 Gammon 31 75% 18 Jardine Restaurants 24 -15% 28 Transport Services 25 52% 17 JTH 7 -25% 9 Corporate and other interests - 98% (9) Underlying profit 164 21% 135
Slide 14: Jardine Motors
Jardine Motors Underlying Profit Contribution US$m 2017 chg 2016 Option 1 China (incl. HK & Macau) 171 74% 98 UK 15 -49% 30 Corporate (2) -6% (2) Underlying profit 184 46% 126 • Increased profits from mainland China • Good year in Hong Kong • UK business results lower, 2016 included gain on sale of
Slide 15: Jardine Lloyd Thompson
Jardine Lloyd Thompson Financial Summary* £m 2017 chg 2016 Revenue Option 1 1,386 10% 1,261 Underlying trading profit 214 10% 194 Underlying profit** 127 14% 111 • Risk and Insurance businesses growing globally • UK Employee Benefits returned to growth • Ongoing investment in US Specialty * 100% bas
Slide 16: Jardine Strategic
Jardine Strategic Financial Summary* US$m 2017 chg 2016 Underlying profit Option 1 1,598 11% 1,438 Non-trading items 2,521 1,303 Profit attributable to shareholders 4,119 50% 2,741 Underlying EPS, US$ 2.76 13% 2.45 DPS, US¢ 32.00 7% 30.00 NAV per share, US$** 59.08 11% 53.25 * 100% basis ** Calculat
Slide 17: Hongkong Land
Hongkong Land Financial Summary* US$m 2017 chg 2016 Underlying profit Option 1 970 14% 848 Total equity 36,808 18% 31,314 NAV per share, US$ 15.63 18% 13.30 • Investment property performed well, particularly in Hong Kong • Higher rate of sales completions in development property in mainland China •
Slide 18: Dairy Farm
Dairy Farm Financial Summary* US$m 2017 chg 2016 Option Sales including associates and1JVs 21,827 7% 20,424 Sales 11,289 1% 11,201 Underlying profit 403 -13% 460 • Underperformance in Food in Southeast Asia • Encouraging performance from Convenience Stores • Health & Beauty grew revenue and profits
Slide 19: Mandarin Oriental
Mandarin Oriental Financial Summary* US$m 2017 chg 2016 Option Combined total revenue 1 under management of hotels 1,380 4% 1,324 Underlying profit 55 -4% 57 Adjusted shareholders’ funds** 5,747 48% 3,888 Adjusted NAV per share, US$** 4.57 47% 3.10 • London renovation ongoing • Other hotels, in part
Slide 20: Jardine Cycle & Carriage
Jardine Cycle & Carriage Underlying Profit Contribution* US$m 2017 chg 2016 Astra Option 1 641 28% 500 Direct motor interests 125 -25% 167 Other strategic interests 34 3% 33 Corporate costs (12) 43% (21) Underlying profit 788 16% 679 • Astra contribution increased 28% • Mixed results in non-Astra bu
Slide 21: Astra
Astra Contribution to JC&C US$m 2017 chg 2016 Automotive Option 1 284 -9% 313 Financial services 139 369% 30 Heavy equipment, mining, construction & energy 171 50% 114 Agribusiness 60 - 60 Infrastructure & logistics 4 -57% 10 Information technology 7 - 7 Property 1 N/A (8) Withholding tax (25) 4% (2
Slide 22: Underlying Profit Contribution
Underlying Profit Contribution Jardine Matheson US$m 2017 chg 2016 Jardine Pacific Option 1 164 21% 135 Jardine Motors 184 46% 126 Jardine Lloyd Thompson 69 22% 56 Hongkong Land 406 15% 353 Dairy Farm 261 -12% 297 Mandarin Oriental 35 -2% 36 Jardine Cycle & Carriage (ex. Astra) 82 -27% 112 Astra 402
Slide 23: Outlook for 2018
Outlook for 2018 Jardine Matheson Continue to drive growth in existing businesses and markets Greater China and Southeast Asia focus Integrate digital opportunities while leveraging our key strengths Committed to investing in our businesses and people
Slide 24: J Jardines
Ww J Jardines oth Marth 2018 ‘Je
Jardine Matheson Holdings — FY2017 Earnings Presentation on 6ix