Jardine Matheson Holdings Limited · SGX:J36
Jardine Matheson — H1 2023 Earnings Presentation
26 slides from Jardine Matheson's earnings presentation, Jul 31, 2023
Slide 1: 2023 Half-Year Results
PRESENTATION TO ANALYSTS / INVESTORS 2023 Half-Year Results 31 JULY 2023
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 Progress on Group Strategic Priorities Financial Performance and Review • Financial highlights • Financial summary • Underlying profit contribution by business • Non-trading items • Net borrowings • Consolidated cash flow Group Businesses Performance • Financial performance • Key highlights O
Slide 4: Evolving our Group portfolio
Evolving our Group portfolio Progress on our Group strategic priorities Investing for the long-term • Diversifying into nickel mining and processing through: o Astra’s acquisition of 90% interest in PT Stargate Pasific Resources and PT Stargate Mineral Asia, for consideration of US$272m o UT’s acqui
Slide 5: Driving innovation & operational excellence
Driving innovation & operational excellence Progress on our Group strategic priorities Efficiency and productivity • Good progress at DFI, JEC, Gammon, JRG, Zung Fu, Hactl • Successful early transitions to Jardines Business Services (GBS) function Business Innovation • Astra launching digital bank f
Slide 6: Enhancing leadership & entrepreneurialism
Enhancing leadership & entrepreneurialism Progress on our Group strategic priorities Continued focus on D&I • D&I targets introduced in senior leaders’ KPIs • D&I learning programmes now part of new-joiner onboarding Executive leadership • New CEOs at DFI Retail Group and Mandarin Oriental People &
Slide 7: Embedding sustainability
Embedding sustainability Progress on our Group strategic priorities Second Group Sustainability Report in May Climate action • Science-based GHG reduction targets at HKL, Gammon, Hactl and DFI • Continued commitment to a Just Transition Responsible consumption • Focus on waste reduction and manageme
Slide 8: Financial Performance and Review
Financial Performance and Review
Slide 9: Financial highlights
Financial highlights Six months ended 30 June 2023 Rest of the world, 5% • Underlying profit of US$832m: o +10% above 1H 2022 (+14% at CER(1)) China, 37% o +11% above 1H 2019 • Underlying earnings per share of US$2.84, up 9% against first half of 2022 Geographical split • Strong performance from Ast
Slide 10: Financial summary
Financial summary Six months ended 30 June 2023 Constant US$m 1H2023 +/- 1H2022 FX +/- Underlying profit 823 +10% +14% 747 Non-trading items (257) (324) Profit attributable to 566 +34% 423 shareholders Underlying EPS, US$ 2.84 +9% +13% 2.60 DPS, US¢ 60 +9% 55 10
Slide 11: Underlying profit contribution by business, US$m
Underlying profit contribution by business, US$m Six months ended 30 June 2023 Underlying profit +68 growth, 1H2023 vs 1H2022, (US$m) 2019* 2022 +4 2023 -83 -7 -30 +66 +39 207 349 417 198 220 224 107 172 89 56 71 64 45 67 37 115 26 7 22 3 +19 (40) (75) (56) (17) Astra Hongkong Land Jardine Motor Jar
Slide 12: Underlying EPS and DPS growth, US$/share
Underlying EPS and DPS growth, US$/share 1H 2019 – 1H 2023 2.84 2.60 Underlying EPS +88¢ / +45% +88¢ (+45%) underlying EPS growth: 1.96 1.86 +68¢ (+35%) share buybacks/purchases +20¢ (+10%) business growth(1) 1.01 0.55 0.60 0.44 0.44 0.44 DPS +16¢ / +36% 2019 2020 2021 2022 2023 Underlying EPS (US$)
Slide 13: Non-trading items
Non-trading items US$m 1H2023 1H2022 Change in fair value of investment properties (482) (63) Change in fair value of other investments 54 (148) Impairment of assets - (114) Share of Zhongsheng’s results for 2H 2022 101 - Sale of businesses 11 4 Sale of property interests 61 - Others (2) (3) Non-tra
Slide 14: Net borrowings
Net borrowings US$m 30 Jun 2023 chg 31 Dec 2022 Jardine Pacific / Jardine Motor Interests 26 +6 20 Hongkong Land (5,545) +272 (5,817) DFI Retail (883) -17 (866) Mandarin Oriental (233) +143 (376) Jardine Cycle & Carriage 777 -116 893 Jardine Matheson Corporate (1,075) +294 (1,369) Net borrowings (ex
Slide 15: Consolidated cash flow
Consolidated cash flow US$m 1H2023 1H2022 Cash flows from operating activities 2,746 2,183 Investing activities: − Investments in and advances to associates and JVs (218) (749) − Other capital expenditure (1,209) (904) − Sale of subsidiaries 303 - − Other disposals, advances and repayment from assoc
Slide 16: Group Businesses Performance
Group Businesses Performance
Slide 17: Astra results
US$m 1H2023 chg 1H2022 * Automotive 174 +35% 128 Financial Services 127 +27% 100 Heavy Equipment, Mining, Construction and 229 +8% 212 Energy Agribusiness 9 -58% 22 Infrastructure and Logistics 17 +38% 12 Others 4 +21% 4 Withholding tax (17) -20% (13) Underlying profit 543 +17% 465 • Improved perfor
Slide 18: Hongkong Land results
US$m 1H2023 chg 1H2022 Contributions to Underlying Profit – Investment Properties 498 +3% 481 – Development Properties 180 -19% 223 – Financing, tax, NCI & other expenses (256) +9% (279) Total Underlying profit 422 -1% 425 30 Jun 23 31 Dec 22 Total equity 32,157 -4% 33,327 NAV per share US$ 14.51 -3
Slide 19: Jardine Motor Interests results
US$m 1H2023 chg 1H2022 Zhongsheng 89 -41% 150 Jardine Motors Group United Kingdom 1 -96% 20 Corporate (1) n/a 2 Underlying profit 89 -48% 172 • Contribution from Zhongsheng (‘ZS’) dropped 41% to US$89 million reflecting slowdown in mainland car market from 2021 peak: o JM’s 1H 2022 result ($150m) re
Slide 20: Jardine Pacific results
US$m 1H2023 chg 1H2022 Jardine Schindler 21 +25% 17 JEC 16 +2% 16 Gammon 17 +28% 13 Transport Services 10 -10% 11 Jardine Restaurants (6) n/a 13 Zung Fu Hong Kong 6 +91% 3 Corporate and other interests - +60% (2) Underlying profit 64 -10% 71 • Engineering: JEC, Jardine Schindler and Gammon saw good
Slide 21: Jardine Cycle & Carriage results
US$m 1H2023 chg 1H2022 Astra 543 +17% 465 JC&C Other Businesses: - THACO 15 -72% 52 - Direct Motor Interests 34 +22% 28 - Other Strategic Interests 29 -15% 34 - Corporate costs • Exchange differences (7) +80% (35) • Net financing charges (21) -93% (11) • Others (10) +5% (11) Underlying profit (JC&C
Slide 22: DFI Retail Group results
US$m 1H2023 chg 1H2022 Revenue 4,574 - 4,567 Operating profit from subsidiaries 128 +67% 76 Financing, tax and NCI (88) -28% (68) Share of results of associates & JVs (7) +89% (60) Underlying profit / (loss) 33 n/a (52) • Significant recovery in overall performance (+$85m improvement from 1H 2022 lo
Slide 23: Mandarin Oriental results
US$m 1H2023 chg 1H2022 Combined total revenue of hotels owned and under management** 882 +30% 679 Underlying profit / (loss) - Owned hotels 14 n/a (28) - Management business 16 +111% 7 - Property development (2) -350% - Total Underlying profit / (loss) 28 n/a (21) 30 Jun 23 31 Dec 22 Adjusted shareh
Slide 24: Outlook
Outlook • Strong first-half results overall and from most businesses • Earnings growth expected to continue for remainder of year • Continued focus on core Asian markets to create sustainable long-term growth
Slide 25: 2023 Half-Year Results Q&A
2023 Half-Year Results Q&A
Slide 26: End of presentation
END OF PRESENTATION 2023 Half-Year Results If yo u h a ve a n y q u e ri e s , p l e a s e e m a i l g c @j a rd i n e s .c o m
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