Jardine Matheson Holdings Limited · SGX:J36
Jardine Matheson — FY2022 Earnings Presentation
29 slides from Jardine Matheson's earnings presentation, Mar 3, 2023
Slide 1: Presentation to Analysts / Investors: Full Year Results
wy ad Jardines Presentation to Analysts / Investors FULL YEAR RESULTS 3 March 2023
Slide 2: Introduction
Introduction • Jardine Matheson overview • Capital allocation framework • Progress updates on four strategic priorities Financial Performance and Review • Financial highlights • Financial summary • Underlying profit contribution by business • Underlying EPS and DPS growth • Non-trading items • Net b
Slide 3: Diversified portfolio of market-leading businesses in China and Southeast Asia
Our diversified portfolio of market-leading businesses focuses on two key markets driving global growth: China and Southeast Asia. Percentages show effective ownership as at 2nd March 2023 3
Slide 4: Cumulative underlying profit by geography, sector and business unit
2018 – 2022 Cumulative underlying profit by segment = US$7.7bn 1,2 3 Rest of the World 2% 6% Others 2% 9% Financial services 8% 11% Retail & restaurants 13% SEA 43% Engineering, heavy 16% equipment, mining, construction and energy 21% 29% Motor vehicles 27% by Business Unit by Geography by Sector Ch
Slide 5: Our core investment principles
Our core investment principles: • We invest in sectors where we see long-term value; • We invest in markets and sectors we understand; • We invest in people we know and trust; • We evolve our portfolio to reflect changes in the environment by: Investing in new businesses Divesting non-core businesse
Slide 6: Capital Allocation Framework
A Jardine Matheson Overview wy Jardines Capital Allocation Framework e e. ° e e ° e rt e e e e ° e e e * Organic investment in * Continued payment of + New business M&A portfolio to drive long-term dividends, growing over time + Investment in Group Companies, including through buy-backs Strong balan
Slide 7: Progress on four strategic priorities
Evolving our Group Driving Innovation & Enhancing Leadership & Embedding Sustainability Portfolio Operational Excellence Entrepreneurialism Continued simplification of Building digital capabilities • Appointments of new JML • Published inaugural portfolio • DFI Retail’s yuu and yuu-to- Director role
Slide 8: Evolving our Group Portfolio
Evolving our Group Portfolio Continued simplification of portfolio • Greatview • DFI Retail, Malaysia businesses • UK Motors Made new strategic investments • Bank Jasa Jakarta • Medikaloka Hermina Seized opportunities in sustainability • Nickel mining and processing (Stargate) • Renewable energy (Ar
Slide 9: Driving Innovation & Operational Excellence
Driving Innovation & Operational Excellence Building digital capabilities • DFI Retail’s yuu and yuu-to-me programmes • Mandarin Oriental unified property management system • HKL and MOHG’s improved consumer-facing digital services Innovating towards new ways of working • Gammon’s VDC modelling • JE
Slide 10: Enhancing Leadership & Entrepreneurialism
Enhancing Leadership & Entrepreneurialism • Appointments of new JML Director roles to drive future development in China and SEA • Group-wide learning programmes saw high levels of participation • D&I strategy, initiatives and new policies rolled out across the Group 10
Slide 11: Embedding Sustainability
Embedding Sustainability • Published inaugural Sustainability Report and TCFD-aligned disclosures • Committed to a Just Energy Transition, increasing renewable energy-focused investments and diversification into non-coal mineral mining • Celebrated 20 years of mental health promotion through MINDSET
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Slide 13: Financial highlights
• Underlying profit and underlying EPS grow by 5% and 14%, respectively • Strong performance in Southeast Asia, led by Astra • Continued pressure on China (including Hong Kong) in the second half • Full year dividend of US$2.15, up 8% Geographic Split Revenue Underlying profit 6% US$37,724m US$1,584
Slide 14: Financial summary: underlying profit and EPS
Constant US$m 2022 +/- FX +/- 2021 Underlying profit 1,584 +5% +9% 1,513 Non-trading items (1,230) 368 Profit attributable to shareholders 354 -81% 1,881 Underlying EPS, US$ 5.49 +14% +18% 4.83 DPS, US$ 2.15 +8% 2.00 +14% Business performance 10% Acquisition of Jardine Strategic Minority* +5% * Refl
Slide 15: Underlying profit contribution by business
+46% Underlying profit growth, 2021 vs 2022, (%) 2019 2021 -15% 2022 -6% +4% +14% -73% N/A 460 474 405 455 474 691 196 318 299 164 175 182 84 119 135 210 82 22 27 6 -93% (48) (7) (81) (156) Hongkong Land Astra Jardine Motors Jardine Pacific JC&C DFI Retail MOHG Corporate * 2019 figures are included
Slide 16: Underlying EPS and DPS growth
5.49 4.83 4.23 Underlying • +30% EPS 2019-22 reflects EPS +30% >30% contribution from share buybacks/ purchases, 2.95 underpinned by diversification of earnings 2.15 2.00 1.72 1.72 • Cyclical recovery ahead in DPS many businesses, despite +25% softening commodity prices 2019 2020 2021 2022 Underlyin
Slide 17: Non-trading items
US$m 2022 2021 Change in fair value of investment properties (604) (681) Change in fair value of other investments (309) (62) Impairment of assets (345) (12) Sale of Zung Fu China (28) 791 Sale of a hotel property 37 - Sale of Zung Fu properties in Hong Kong - 337 Sale of other property interests 23
Slide 18: Net borrowings
US$m 2022 chg 2021 Jardine Pacific / Jardine Motors 20 -94% 316 Hongkong Land (5,817) -14% (5,104) DFI Retail (866) -3% (844) Mandarin Oriental (376) +27% (517) Jardine Cycle & Carriage 893 +16% 770 Jardine Matheson Corporate (1,369) -9% (1,256) Net borrowings (ex financial services) (7,515) -13% (6
Slide 19: Consolidated cash flow
US$m 2022 2021 Cash flows from operating activities 4,825 5,076 Investing activities: − Investments in and advances to associates and JVs (1,460) (1,294) − Other capital expenditure (2,047) (1,444) − Sale of ZF China and ZF Hong Kong properties - 1,492 − Other disposals, advances and repayment from
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Slide 21: Jardine Pacific
US$m 2022 chg 2021 Jardine Schindler 36 +12% 32 JEC 53 +9% 49 Gammon 39 - 39 Jardine Restaurants 19 -29% 27 Transport Services 23 -25% 31 Zung Fu Hong Kong* 12 +160% 4 Corporate and other interests - n/a (7) Underlying profit 182 +4% 175 • Resilient B2B businesses, with growth at JSG and JEC and a r
Slide 22: Jardine Motors
US$m 2022 chg 2021 China 263 -8% 285 UK 35 -8% 38 Corporate 1 n/a (5) Underlying profit 299 -6% 318 • China: higher contribution from Zhongsheng, with strong used car performance, partly offset by absence of contributions from Zung Fu China following disposal in 2021 and Zung Fu Hong Kong & Macau tr
Slide 23: Hongkong Land
US$m 2022 chg 2021 Contributions to Underlying Profit Investment Properties 951 -2% 973 Development Properties 404 -37% 644 Financing, tax, NCI & other expenses (579) +11% (651) Total Underlying profit 776 -20% 966 Total equity 33,327 -4% 34,618 NAV per share US$ 14.95 -1% 15.05 • Investment Propert
Slide 24: DFI Retail Group
US$m 2022 chg 2021 Sales 9,174 - 9,188 Operating profit from subsidiaries 209 -33% 314 Financing, tax and NCI (145) +14% (169) Share of results of associates & JVs (35) +14% (40) Underlying profit 29 -72% 105 • Lower full year underlying profit due to pandemic impacts, inflation and increased invest
Slide 25: Mandarin Oriental
US$m 2022 Chg 2021 Combined total revenue of hotels owned 1,568 +49% 1,053 and under management** Underlying profit / (loss) - Owned hotels (7) +90% (72) - Management business 17 +270% 5 - Property development (2) +157% (1) Total Underlying profit/(loss) 8 n/a (68) Adjusted shareholders’ funds^ 4,89
Slide 26: Jardine Cycle & Carriage
US$m 2022 chg 2021 Astra 913 +39% 655 THACO 83 +34% 62 Direct Motor Interests 63 +62% 39 Other Strategic Interests 86 -4% 89 Corporate costs Exchange differences 4 n/a (28) Net financing charges (34) -101% (17) Others (19) -23% (14) Underlying profit 1,096 +39% 786 • Astra, THACO and Direct Motor In
Slide 27: Astra
US$m 2022 chg 2021 Automotive 297 +28% 232 Financial Services 202 +17% 173 Heavy Equipment, Mining, Construction and 424 +95% 217 Energy Agribusiness 50 -8% 54 Infrastructure and Logistics 18 +638% 2 Others 7 -1% 8 Withholding tax (85) -172% (31) Underlying profit 913 +39% 655 • Record earnings deli
Slide 28: Outlook
• Encouraging recovery in many businesses in 2022 • Nearer-term opportunities from continued cyclical recovery in DFI Retail, Mandarin Oriental, Astra Auto/Consumer Finance & Jardine Pacific, balanced by softening commodity prices & the pace of recovery of consumer sentiment in China • Mid-term grow
Slide 29: Q&A
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