Jardine Cycle & Carriage Limited · SGX:C07
Jardine Cycle & Carriage — Jardine Matheson — FY2019 Earnings Presentation
23 slides from Jardine Cycle & Carriage's earnings presentation, Mar 6, 2020
Slide 1: Presentation to Analysts: 2019 Annual Results
PRESENTATION TO ANALYSTS 2019 ANNUAL RESULTS 6th MARCH 2020
Slide 2: Introduction
Introduction 2019 Annual Results Overview of 2019 Key Developments Financial Summary Outlook for 2020
Slide 3: Overview of 2019
Overview of 2019 Jardine Matheson Impact of social unrest in Hong Kong in second half Resilient performance despite short-term challenges Record year for Hongkong Land and solid results from Jardine Pacific and Astra Dairy Farm’s results impacted by Hong Kong but transformation programme pro
Slide 4: Jardine Matheson Group
Jardine Matheson Group at 31st December 2019 Group JMH JSH Ownership Economic Economic % Interest % Interest % Jardine Pacific 100 100 58 Jardine Motors 100 100 58 Jardine Strategic 85 85 - - Hongkong Land 50 43 50 - Dairy Farm 78 66 78 - Mandarin Oriental 78 66 78 - Jardine Cycle & Carriage 75 64 7
Slide 5: Financial Summary
Financial Summary at 31st December 2019 US$m 2019 chg 2018* Revenue (including 100% of associates and JVs) 103,308 12% 92,348 Revenue 40,922 - 4% 42,527 Underlying PBT 4,678 - 4% 4,850 Underlying profit 1,589 - 4% 1,655 Non-trading items 1,249 67 Profit attributable to shareholders 2,838 65% 1,722 U
Slide 6: Key Developments
Key Developments Jardine Matheson Large strategic acquisition by Hongkong Land Strong focus on capital allocation - Sale of JLT stake increases financial strength of Group Strengthened relationship with Yonghui Continued investments in Southeast Asia by Astra and JC&C Establishment of Jard
Slide 7: Underlying Profit Contribution
Underlying Profit Contribution Jardine Matheson US$m 2019 chg 2018* Jardine Pacific 164 2% 160 Jardine Motors 196 12% 175 Hongkong Land 460 5% 438 Dairy Farm 210 - 11% 235 Mandarin Oriental 27 - 39% 45 Jardine Cycle & Carriage (ex. Astra) 84 - 17% 101 Astra 455 - 2% 465 Jardine Lloyd Thompson - - 10
Slide 8: Non-Trading Items
Non-Trading Items Jardine Matheson US$m 2019 2018* Change in fair value of investment properties (337) 613 Change in fair value of other investments 49 (316) Sale of Jardine Lloyd Thompson 1,507 (21) Sale of Rustan in the Philippines - 111 Sale and closure of other businesses 48 7 Restructuring of D
Slide 9: Balance Sheet
Balance Sheet Jardine Matheson US$m 12/2019 chg 12/2018* Shareholders’ funds 30,351 16% 26,069 NAV per share, US$** 81.90 18% 69.19 Net debt (ex financial services) (4,786) 19% (5,913) Gearing 7% 10% Net debt of financial services (3,294) - (3,292) * Restated ** Calculated on a book value basis 9
Slide 10: Analysis of Net Borrowings
Analysis of Net Borrowings Jardine Matheson US$m 12/2019 gearing 12/2018* Jardine Pacific / Jardine Motors 13 - 19 Hongkong Land (3,591) 9% (3,564) Dairy Farm (821) 66% (744) Mandarin Oriental (300) 7% (285) Jardine Cycle & Carriage (3,048) 20% (2,152) Jardine Matheson Corporate 1,199 - 39 Jardine S
Slide 11: Consolidated Cash Flow (1 of 2)
Consolidated Cash Flow (1 of 2) Jardine Matheson US$m 2019 2018* Operating activities 4,865 5,157 Investing activities - Capital expenditure (4,283) (5,933) * Restated 11
Slide 12: Capital Expenditure & Investments
Capital Expenditure & Investments Jardine Matheson US$m 2019 2018 Capital expenditure 4,283 5,933 - Purchase of subsidiaries 28 1,287 - Investments in and advances to associates & JVs 2,113 2,181 - Purchase of other investments 409 708 - Purchase of intangible assets 224 115 - Purchase of tangible a
Slide 13: Consolidated Cash Flow (2 of 2)
Consolidated Cash Flow (2 of 2) Jardine Matheson US$m 2019 2018* Operating activities 4,865 5,157 Investing activities - Capital expenditure (4,283) (5,933) - Disposals, advances and repayments from associates and JVs 3,583 1,275 Principal elements of lease payments (1,016) (1,018) Other financing a
Slide 14: Jardine Pacific
Jardine Pacific Underlying Profit Contribution US$m 2019 chg 2018* Jardine Schindler 48 - 2% 49 JEC 41 21% 34 Gammon 36 10% 32 Jardine Restaurants 13 - 28% 19 Transport Services 18 - 17% 21 Corporate and other interests 8 51% 5 Underlying profit 164 2% 160 JEC sees benefits from investment in mode
Slide 15: Jardine Motors
Jardine Motors Underlying Profit Contribution US$m 2019 chg 2018* China (incl. HK & Macau) 196 18% 165 UK 1 - 87% 12 Corporate (1) 43% (2) Underlying profit 196 12% 175 Higher contribution from Zhongsheng Weaker operational performance in Hong Kong and the UK * Restated 15
Slide 16: Jardine Strategic
Jardine Strategic Financial Summary** US$m 2019 chg 2018* Underlying profit 1,681 - 3% 1,729 Non-trading items 497 98 Profit attributable to shareholders 2,178 19% 1,827 Underlying EPS, US$ 2.98 - 2% 3.04 DPS, US¢ 35.50 4% 34.00 NAV per share, US$*** 57.98 - 15% 68.46 * Restated ** 100% basis *** Ca
Slide 17: Hongkong Land
Hongkong Land Financial Summary* US$m 2019 chg 2018 Underlying profit 1,076 4% 1,036 Total equity 38,290 - 38,370 NAV per share, US$ 16.39 - 16.43 Further year of record underlying profit growth Stable profits from Investment Properties Acquisition of iconic West Bund site in Shanghai in Febru
Slide 18: Dairy Farm
Dairy Farm Financial Summary** US$m 2019 chg 2018* Sales including associates and JVs 27,665 26% 21,957 Sales 11,192 - 5% 11,749 Underlying profit 321 - 10% 358 Profit impacted by Hong Kong social unrest Progress in Southeast Asia Grocery Retail Convenience sales increase but profit impacted b
Slide 19: Mandarin Oriental
Mandarin Oriental Financial Summary** US$m 2019 chg 2018* Combined total revenue of hotels under 1,325 - 5% 1,398 management Underlying profit 41 - 37% 65 Adjusted shareholders’ funds*** 5,936 2% 5,827 Adjusted NAV per share, US$*** 4.70 2% 4.62 Profit impacted by closure of The Excelsior, Hong Ko
Slide 20: Jardine Cycle & Carriage
Jardine Cycle & Carriage Underlying Profit Contribution** US$m 2019 chg 2018* Astra 716 - 718 Direct Motor Interests 63 - 11% 71 Other Strategic Interests 126 - 13% 144 Corporate costs - Central overheads (24) - 24% (19) - Dividend income from other investments 5 2% 5 - Net financing charges and exc
Slide 21: Astra
Astra Contribution to JC&C US$m 2019 chg 2018* Automotive 269 - 1% 272 Financial services 216 26% 171 Heavy equipment, mining, construction & energy 238 4% 230 Agribusiness 4 - 90% 43 Infrastructure & logistics 10 48% 7 Information technology 7 - 7% 7 Property 3 - 85% 19 Withholding tax (31) - 1% (3
Slide 22: Outlook for 2020
Outlook for 2020 Jardine Matheson Drive growth in core businesses in core markets Investing for future change Focus on digitisation, developing capability and sustainable business growth 2020 performance depends on duration, geographic extent and impact of COVID-19 and measures to control it
Slide 23: Presentation to Analysts: 2019 Annual Results
PRESENTATION TO ANALYSTS 2019 ANNUAL RESULTS 6th MARCH 2020