Jardine Matheson Holdings Limited · SGX:J36
Jardine Matheson — FY2023 Earnings Presentation
28 slides from Jardine Matheson's earnings presentation, Mar 8, 2024
Slide 1: Annual Results 2023 Presentation to Analysts
Creating long-term, sustainable value Presentation to Analysts Annual Results 2023 8 March 2024
Slide 2: Cautionary statement
Cautionary statement Disclaimer: Forward-looking statements Your accessing of this document indicates your understanding, agreement to and acceptance, of this disclaimer This document (including information incorporated by reference in this document), oral statements made by or on notice and the ful
Slide 3: Agenda
Agenda Introduction Financial Performance and Review Group Businesses Performance Outlook
Slide 4: Overview
Overview Diversified portfolio of quality businesses Leveraging the growing prosperity of Asia 4% 7% Rest of the World 6% 7% 8% Jardine Motor Interests 37% China 9% 22% South East Asia 56% 44% 4 2023 Underlying profit contribution by business 2023 Underlying profit contribution by geography
Slide 5: Enhancing leadership & entrepreneurialism
Enhancing leadership & entrepreneurialism Leadership appointments Portfolio CEOs • Scott Price (DFI Retail) • Laurent Kleitman (Mandarin Oriental) • Michael Smith (Hongkong Land) • Elton Chan (Jardine Pacific) Scott Price Michael Smith Janine Feng Independent NEDs on JMH Board • Janine Feng and Keyu
Slide 6: Evolving our Group portfolio
Evolving our Group portfolio Strategic investments in SEA Astra • Nickel mining and processing investments (Stargate Pasific, Stargate Mineral, Nickel Industries) • increased interests in renewables (Supreme Energy) healthcare (Halodoc) JC&C - increased interests in THACO & REE Portfolio simplif
Slide 7: Driving innovation & operational excellence
Driving innovation & operational excellence Driving greater efficiency and productivity • HACTL enhanced robotics • DFI Retail transformation programme • MO Guest Experience Programme • Global Business Services Driving innovation • Astra digital banking JV (Bank Saqu) • Astra acquires OLX • JC&C ent
Slide 8: ESG ratings improving, ahead of relevant benchmarks
ESG ratings improving, ahead of relevant benchmarks Higher score = improvement Lower score = improvement Most comprehensive real estate sustainability rating JM 71 17.3 HKL: JC&C 20.1 Astra 22.9 • Global Sector Leader 2023 HKL • Five-Star Ratings 2023 52 • Top 20% globally 32.8 41 32.3 39 33.4 Devel
Slide 9: Embedding sustainability
Embedding sustainability Leading Climate Action • SBTi validation for HKL, DFI, Gammon and HACTL Scope 1-3 targets • Scope 1 & 2 decarbonisation pathways in all subsidiaries • Sustainability included in capital allocation decision-making Driving Responsible Consumption • Cross-business actions to re
Slide 10: Financial Performance and Review
Financial Performance and Review
Slide 11: Financial highlights 2023
Financial highlights 2023 MOHG Solid performance in challenging market conditions JC&C 4% 6% DFI Retail • Underlying net profit up 5% to US$1.66 billion (+7% at CER°) 7% Motor • Record performance in South East Asia, driven by Astra Interests Astra Underlying 44% 8% • Strong recoveries at DFI Retail
Slide 12: 5% Underlying Profit growth driven by DFI, Astra & MO
5% Underlying Profit growth driven by DFI, Astra & MO Motor Interests headwind: Zhongsheng – forecast new car margins / JM alignment; JMG UK – disposal +5% vs. 2022 1,661 +98 1,584 -160 +95 (US$m) +59 -33 -18 +52 -16 FY2022 Motor JC&C Jardine HKL Corporate MOHG Astra DFI FY2023 12 Interests Pacific
Slide 13: Growth (+/-) vs 2022 (US$m)
H2 slowdown Astra - commodity prices; HKL – mainland China DP market conditions; DFI – China consumer sentiment +76 +67 +66 +39 Growth (+/-) vs 2022 (US$m) +28 +32 +32 +20 +20 +3 +1 -4 -7 -11 -19 -29 H1 H2 -83 -77 Motor JC&C Jardine HKL Astra DFI Retail MOHG Corporate JMH Interests Pacific 13
Slide 14: 5% Underlying EPS and DPS growth vs. 2022
5% Underlying EPS and DPS growth vs. 2022 (US$/share) 5.74 5.49 4.83 4.23 Underlying EPS +151¢ / +36% 2.95 2.15 2.25 2.00 1.72 1.72 DPS +53¢ / +31% 2019 2020 2021 2022 2023 14 Underlying EPS (US$) Total dividends per share (US$)
Slide 15: Non-trading items
Non-trading items US$m 2023 2022 Change in fair value of investment properties (1,066) (604) Change in fair value of other investments 35 (327) Impairment of assets (172) (327) Share of Zhongsheng’s results for 2H 2022 101 - Sale and closure of businesses 44 (24) Sale of property interests 105 23 Ot
Slide 16: Net borrowings
Net borrowings $2.2bn capital deployment / returns reduce Astra net cash; offset $1.4bn net debt reductions elsewhere US$m 2023 chg 2022 Jardine Pacific / Jardine Motor Interests (66) -86 20 Hongkong Land (5,371) +446 (5,817) DFI Retail (618) +248 (866) Mandarin Oriental (225) +151 (376) Jardine Cyc
Slide 17: Consolidated cash flow
Consolidated cash flow US$m 2023 2022 Cash flows from operating activities 4,584 4,825 Investing activities: − Investments in and advances to associates and JVs (1,621) (1,460) − Other capital expenditure (3,047) (2,047) − Sale of subsidiaries 365 - − Other disposals, advances and repayment from 1,9
Slide 18: Group Businesses Performance
Group Businesses Performance
Slide 19: Astra
US$m 2023 chg 2022 * Contribution to JC&C Automotive 342 +15% 297 Financial Services 258 +28% 202 Heavy Equipment, Mining, Construction and Energy 422 - 424 Agribusiness 27 -45% 50 Infrastructure and Logistics 32 +81% 18 Others 9 +14% 7 Withholding tax (71) +17% (85) Underlying profit 1,019 +12% 913
Slide 20: Hongkong Land
US$m 2023 chg 2022 Financial Summary* Contributions to Underlying Profit – Investment Properties 984 +3% 951 – Development Properties 273 -32% 404 – Financing, tax, NCI & other expenses (523) +10% (579) Total underlying profit 734 -5% 776 Total equity 31,987 -4% 33,327 NAV per share US$ 14.49 -3% 14
Slide 21: Jardine Pacific
US$m 2023 chg 2022 Underlying Profit Contribution Jardine Schindler 42 +16% 36 JEC 57 +6% 53 Gammon 45 +15% 39 Transport Services 30 +32% 23 Jardine Restaurants (15) n/a 19 Zung Fu Hong Kong 10 -18% 12 Corporate and other interests (5) n/a - Underlying profit 164 -10% 182 • Strong performance across
Slide 22: Jardine Motor Interests
Jardine Motor Interests US$m 2023 chg 2022 Underlying Profit Contribution Zhongsheng 139 -47% 263 Jardine Motors Group United Kingdom# 1 -98% 35 Corporate (1) n/a 1 Underlying profit 139 -54% 299 • Zhongsheng contribution substantially lower due to : • challenging market environment (~60% Y-on-Y dec
Slide 23: DFI Retail
US$m 2023 Chg 2022 Financial Summary* Revenue 9,170 - 9,174 Operating profit from subsidiaries 294 +40% 209 Financing, tax and NCI (182) -25% (145) Share of results of associates & JVs 43 n/a (35) Underlying profit 155 +437% 29 • Encouraging recovery in underlying profit • Flat revenue reflects MY G
Slide 24: Jardine Cycle & Carriage
US$m 2023 chg 2022 Astra (Refer to Slide 20) 1,019 +12% 913 Underlying Profit Contribution* JC&C Other Businesses: - THACO 36 -57% 83 - Direct Motor Interests 68 +8% 63 - Other Strategic Interests 84 -2% 86 - Corporate costs • Exchange differences 22 +464% 4 • Net financing charges (47) -39% (34) •
Slide 25: Mandarin Oriental
US$m 2023 chg 2022 Combined total revenue of hotels owned 1,890 +21% 1,568 Financial Summary* and under management** Underlying profit - Owned hotels 45 +707% (7) - Management business 41 +135% 17 - Property development (5) -100% (2) Total underlying profit 81 +966% 8 Adjusted shareholders’ funds^ 4
Slide 26: Outlook
Outlook • Very solid performance overall, despite growing headwinds in H2 • Continued market challenges in 2024 in key segments in China and Vietnam, as well as lower commodity prices in Indonesia • Remain confident in our long-term strategy and continue to focus on core Asian markets, in order to d
Slide 27: 2023 Full-Year Results Q&A
2023 Full-Year Results Q&A
Slide 28: End of presentation
End of presentation 2023 Full-Year Results If you have any queries, please email gc@jardines.com
Jardine Matheson Holdings — FY2023 Earnings Presentation on 6ix