Final Results Part 1

Jardine Matheson Hldgs Ld
26 February 2003




To:  Business Editor                         26th February 2003
                                          For immediate release

The following announcement was today issued to the London Stock
Exchange.

Jardine Matheson Holdings Limited
2002 Preliminary Announcement of Results

Highlights

> Underlying earnings per share up 46%
> Strong recoveries at Dairy Farm and Astra
> Successful reshaping of Southeast Asian interests:
  - Jardine Strategic increases Cycle & Carriage stake to over 50%
  - Astra strengthened by debt restructuring and rights issue
> Hongkong Land portfolio facing weak market

'Overall our businesses are trading well and remain in sound
financial  health.  We expect there to be  weaknesses  in
some sectors in 2003, notably in the Hong Kong commercial
property   market,   but  elsewhere   opportunities   for
sustained  growth will continue to be pursued across  our
wide  range  of  operations.   The  global  economic  and
political climates, however, remain highly uncertain  and
any  general downturn would have a significant impact  on
the  trading  environment in Asia.  The current  year  is
therefore one in which to temper optimism with caution.'

Henry Keswick, Chairman
26th February 2003

The  Group's  financial statements  are  prepared  under
International  Financial  Reporting  Standards   ('IFRS')
which  do  not permit leasehold interests in land  to  be
carried  at  valuation.  This treatment does not  reflect
the   generally  accepted  accounting  practice  in   the
territories in which the Group has significant  leasehold
interests, nor how management measures the performance of
the   Group.    Accordingly,  the  Group  has   presented
supplementary   financial   information    prepared    in
accordance  with IFRS as modified by the  revaluation  of
leasehold  properties in addition to the  IFRS  financial
statements. The figures included in the highlights above,
the  Chairman's Statement, Managing Director's Review and
Operating   Review   are  based  on  this   supplementary
financial information unless otherwise stated.

The final dividend of USc22.20 per share will be payable on
14th  May 2003, subject to approval at the Annual General
Meeting  to  be held on 8th May 2003, to shareholders  on
the  register of members at the close of business on 14th
March  2003  and will be available in cash with  a  scrip
alternative.  The ex-dividend date will be on 12th  March
2003, and the share registers will be closed from 17th to
21st March 2003, inclusive.




Jardine Matheson Holdings Limited

Preliminary Announcement of Results
For The Year Ended 31st December 2002

The main features of 2002 were the successful reshaping of our
Southeast Asian interests, transforming our investments in
Singapore,   Indonesia   and  Malaysia,   and   a   profit
performance which notably exceeded our expectations at the
beginning of the year.

Results
Underlying profit was up 41% to US$253 million in the year
ended 31st December 2002. Earnings per share, enhanced  by
the effect of share repurchases, rose 46% to USc67.40.

Our  financial statements are prepared in conformity  with
International Financial Reporting Standards, which require
the  revaluation  of  investment properties  to  be  taken
through  the profit and loss account, rather than directly
to   reserves.    With  the  Group's  extensive   property
interests,  this  accounting treatment can  give  rise  to
significant  fluctuations in reported  earnings.  For  the
year   under  review  the  negative  impact  of   non-cash
movements  in  valuations, partly  offset  by  gains  from
disposals,  was primarily responsible for net  profit,  at
US$74 million, falling well short of underlying earnings.

The  Board is recommending an increased final dividend  of
USc22.20  per  share,  which,  together  with  the  interim
dividend  of USc7.80 per share, gives a dividend  for  the
full  year  of USc30.00 per share, compared with  USc26.50
per share for the prior year.

Operating Earnings
The main elements contributing to the Group's excellent profits
were a continued strong recovery across the board at Dairy
Farm,   including  an  improvement  in   its   Hong   Kong
supermarkets,  and  the performance of Cycle  &  Carriage,
which  benefited from significantly increased earnings  in
Astra,  its Indonesian affiliate.   Astra not only  traded
well,  but  enjoyed  a  welcome period  of  exchange  rate
stability.

In  an unusually tight and difficult market for insurance,
Jardine  Lloyd Thompson's execution skills enabled  it  to
improve  its market share and yet again to achieve  record
earnings.    Mandarin Oriental, suffering  from  the  poor
conditions of the international travel industry, did  well
to  improve  its  earnings, particularly considering  that
three  of  its hotels are still in the development  phase.
Jardine  Pacific's diversified mix of business produced  a
satisfactory overall result with an excellent contribution
from  HACTL, but Jardine Motors Group felt the  impact  of
lower  margins  in  Hong Kong caused by weak  markets  and
changed trading terms with Mercedes-Benz.

Hongkong  Land had the most difficult year of the  Group's
principal affiliates, experiencing reduced rents and asset
values  in  a  Central  District  property  market   badly
affected  by  problems  in  the global  financial  sector.
However,  the  company  managed  to  contain  its   profit
decline, chiefly by obtaining a good share of new lettings
in  Hong  Kong, and its profit contribution to  the  Group
rose marginally due to our increased shareholding.

Operating cash flows were strong throughout nearly all our
businesses.    These   were   augmented   by   disciplined
management of capital expenditure and working capital,  as
well as by some well-timed disposals of non-core assets.

Corporate Developments
During the year the Group was particularly active in Southeast
Asia.    Through  a  tender offer for shares  in  Cycle  &
Carriage, Jardine Strategic raised its interest in  this leading
Singapore  company from 29% to over 50%.   This  move  was
part  of a number of related corporate initiatives,  which
included  the  successful refinancing of Astra  through  a
debt  restructuring and a substantial rights issue led  by
Cycle  &  Carriage.   Astra, in which Cycle  &  Carriage's
holding  was  increased early in 2003 to over 34%,  should
now  be  restored  to  financial  strength,  although  the
ultimate  test  will  be  its  ability  to  reinstate  its
dividend  on a sustainable basis.   In addition  to  these
other  steps,  we  fully supported  the  decision  of  our
affiliate,  EON, to dispose of certain of  its  assets  in
order to focus on its Malaysian motor retail operations.

Dairy Farm sold its New Zealand business in June to concentrate
on  the  development  of  its  Asian  retail  network.  In
Malaysia,   Singapore  and  Indonesia   the   company   is
successfully combining its international retailing  skills
with  an  understanding of the needs of the local consumer
in the development of its hypermarket format.  The company
is  also expanding elsewhere in the region. In 2002, Dairy
Farm deployed some of its cash surplus in repurchasing 177
million  shares,  and  is  now offering  to  repurchase  a
further 11% of its share capital by way of a tender offer.

Hongkong  Land's  new flagship property Chater  House  was
successfully opened in the second half of the year.   More
recently, the company announced an important upgrading  of
its  Landmark complex, including a new exclusive hotel  to
be   managed  by  Mandarin  Oriental.   Mandarin  Oriental
continued its expansion strategy with major new properties
under development in New York, Washington and Tokyo.

Finally, the Group continued its strategy of purchasing or
repurchasing  shares in Group companies  where  favourable
opportunities presented themselves.  This strategy  played
a valuable part in enhancing earnings per share.

Prospects
In conclusion, the Chairman, Henry Keswick said, 'Overall our
businesses are trading well and remain in sound  financial
health.   We expect there to be weaknesses in some sectors
in  2003,  notably  in  the Hong Kong commercial  property
market,  but elsewhere opportunities for sustained  growth
will  continue  to  be pursued across our  wide  range  of
operations.   The global economic and political  climates,
however,  remain highly uncertain and any general downturn
would have a significant impact on the trading environment
in  Asia.   The current year is therefore one in which  to
temper optimism with caution.'



Managing Director's Review

A Good Performance
The quality of our businesses and their ability to perform well
in  difficult markets have enabled the Group to produce  a
41%  increase in underlying profit and a 46%  increase  in
earnings   per  share  despite  the  prevailing   economic
uncertainty.  This increase was built on improved  results
from  a  majority of our businesses, and in  a  number  of
cases  demonstrated the ability of management  to  reshape
their  operations and eliminate cost.  Opportunities  were
also  taken to use the Group's financial strength to  make
investments,  including  share repurchases,  and  in  some
instances to rationalize the business interests  where  it
was felt that value should be realized.

As International Financial Reporting Standards do not currently
enable   us   recognise  the  market  value  of  leasehold
properties within the financial statements, we  are  again
producing   supplementary   financial   information   that
incorporates such values.  The additional disclosures more
accurately   reflect  the  way  management  measures   the
performance of the Group and provides shareholders with  a
clearer  indication of the true strength  of  our  balance
sheet.

Reshaping Southeast Asian Interests
A  series of initiatives were undertaken to reshape  Group
interests  in  Southeast Asia.   A US$137 million  Partial
Offer  for  Cycle & Carriage enabled Jardine Strategic  to
increase  its  interest to over 50%.    Jardine  Strategic
also  made  a  'chain principle' offer  for  the  minority
interests  in Cycle & Carriage's 60%-held subsidiary,  MCL
Land.  The acceptances received were subsequently acquired
by  Cycle  & Carriage, helping it to increase its interest
in MCL Land to 66%.

The Partial Offer for Cycle & Carriage was itself in response
to   the   strategic  decision  made  by  Edaran  Otomobil
Nasional, in which the Group has a 19% stake, to focus  on
its  core  Malaysian  motor retail  operations.   To  help
achieve   this  goal  EON  decided  to  divest   its   21%
shareholding  in  Cycle  & Carriage,  part  of  which  was
acquired by Jardine Strategic in the Partial Offer, and to
list its banking operation.  EON intends to distribute  to
its shareholders its remaining Cycle & Carriage shares.

The complex financial restructuring necessary to reduce the
burden imposed on Cycle & Carriage's associate, Astra,  by
its  foreign  currency  debt  was  successfully  achieved.
Creditor  approval  was  received in  December  2002,  and
Astra's  shareholders subsequently endorsed the proposals,
which included a US$158 million equivalent rights issue in
January 2003.  Cycle & Carriage participated fully in  the
issue,  and used the opportunity to increase its stake  in
Astra to 34.3%.

The effect of these actions has been to consolidate the Group's
interest  in  Cycle  &  Carriage, while  maintaining  its
status  as one of Singapore's principal listed companies.
Cycle & Carriage has, in turn, given full support to  the
restructuring  of  Astra's balance  sheet,  and  is  well
placed   to  support  Astra's  development  as  a   major
Indonesian company with a potentially outstanding future.

Business Initiatives
Our primary goal remains the maximisation of value in our core
businesses.  This must always be set against a background
of sound finances and it is important that we concentrate
our   resources   where  we  see  the   best   investment
opportunities.

During the year further purchases of shares in Group companies
were made where we considered that such purchases offered
good potential for growth and an immediate enhancement of
earnings  or  net  asset  value  per  share.   Through  a
combination  of share buy-backs and share purchases,  the
Company's  interest  in Jardine Strategic  rose  to  79%.
Jardine  Strategic has also increased its  interests.  It
now  holds 69% of Dairy Farm following that company's 10%
share repurchase tender offer, as well as 72% of Mandarin
Oriental and 50% of Cycle & Carriage.

Hongkong Land continues to invest in its core Central District
property  portfolio to maximize the value of  its  assets
and  maintain their status as the premier office location
in   Hong  Kong.  Chater  House  set  new  standards   of
excellence  when  it opened mid-year,  and  the  recently
announced   renovation  of  the  Landmark  complex   will
significantly  enhance the attraction  of  Central  as  a
business   and   leisure  destination.   Elsewhere,   the
company's   residential  development   in   Beijing   has
attracted good pre-sale demand for the first phase, while
in  Singapore its joint-venture development  with  Cheung
Kong  and  Keppel Land, One Raffles Quay,  has  commenced
construction.

Significant progress was made by Dairy Farm in developing its
Giant  hypermarket  concept in Malaysia,  Singapore  and,
beginning  in  2002, Indonesia. It plans  to  repeat  the
success  achieved by its reformatted Hong Kong drugstores
elsewhere in Asia, and has recently established a  joint-
venture  foothold in Korea. The group continues  to  grow
its  convenience  store chain in Southern  China,  almost
doubling  its size to 127 outlets in 2002, while evolving
the format to meet local consumer demand.

Mandarin Oriental's development programme, aimed at achieving
some  10,000  rooms under management, remains  on  track.
The  latest  New York hotel is scheduled to open  in  the
second  half of the year, followed by Washington in  2004
and  Tokyo  in  2006.   The group  is  also  planning  an
additional  niche  luxury  hotel  for  Hong  Kong.    The
strength  of  the Mandarin Oriental brand is increasingly
attractive  to hotel owners, providing the group  with  a
range  of  management opportunities for its award-winning
product.

Within Jardine Pacific, its interest in the Jardine Salmat
joint-venture  in  Asia was exchanged  for  a  direct  4%
shareholding  in Salmat Holdings, its Australian  partner,
and  the  opportunity  was taken after  the  year-end  to
combine the Group's logistics operations with BALtrans, a
Hong   Kong-listed  company,  in  exchange  for   a   20%
shareholding  in  the enlarged entity.   Initiatives  are
being  pursued elsewhere in Jardine Pacific, including  a
new  security  business in Hong Kong, the development  of
its  property  management business,  EastPoint,  and  the
expansion  of  its  Jardine Schindler joint-venture  into
Korea.

Jardine Motors Group continues to refocus its operations as it
adapts  to  changing structures within the  global  motor
retailing  sector.  The rationalization of its  UK  motor
businesses  is  nearing completion  as  it  exits  under-
performing  dealerships and works alongside manufacturers
to optimize the potential of its ongoing operations.  Its
Hong  Kong  business is developing a growing  network  of
service centres in Southern China.

Jardine Lloyd Thompson's emphasis in a year of abnormally tight
insurance markets has been on building skilled teams  and
increasing  its market share.  The successful development
of  new business and continued investment in people  will
enable  it to meet the ambitious targets that the company
has set itself.

The strengthening of the Group's relationship with Cycle &
Carriage and, in turn, its increased investment in  Astra
have been important developments.   Astra offers Cycle  &
Carriage significant exposure to the growth potential  of
several  Indonesian markets, although economic conditions
there are expected to remain fragile.  Cycle & Carriage's
aim  as  a supportive shareholder is to help Astra cement
its   position   as   one  of  Indonesia's   best-managed
diversified companies.

Benefiting from China
China  is  forecast  to  maintain its  powerful  economic
performance, making it one of the leading contributors to
world GDP growth. This will have a positive effect on the
Group  in a number of ways. Our important market of  Hong
Kong will benefit from its role as a conduit for overseas
capital to and exports from Mainland Chinese enterprises,
and  from increasing tourism from the Mainland.  We  also
expect  to  see  a  growing maturity in China's  domestic
markets, facilitated by China's entry into the WTO.  This
will  benefit our businesses operating in Mainland  China
as  they  see rising demand for their goods and services.
While our approach to business in China is long term,  we
have   set   ourselves  a  realistic  goal  of  achieving
acceptable  levels  of profitability within  a  five-year
timeframe.

The Right People
In a Group as broad as Jardine Matheson it is the quality of
our people and the effective utilization of their talents
that  will determine the measure of our success over  the
longer  term.  We believe in training and development  at
all  levels to ensure our people are always in a position
to  meet the challenging business environment. We provide
clear guidance as to the standards we require to be  met,
both in commercial targets and in ethical conduct.

The importance we place on our values has been highlighted in
the  Group's  Pride in Performance awards,  a  Group-wide
business award programme which was instigated last  year.
The  awards  are designed to recognize and  reward  those
teams  that through their energy and enterprising  spirit
produced  significant and sustainable benefits  to  their
business. The winner of the 2002 award was Mannings  Hong
Kong,  the Dairy Farm drugstore chain that over a  three-
year   period   repositioned  its   offering   and   made
significant gains in market share and profitability.

The Future
We are fortunate in that our businesses are primarily market-
leading  operations supported by strong management  teams
and sound finances. While there are tensions in the world
today   that   could   result  in  significant   business
disruption   and  loss  of  confidence,  the   Group   is
maintaining  a  strategy  of steady  growth  designed  to
enhance shareholder returns over the longer term.

Percy Weatherall
Managing Director
26th February 2003



Operating Review

Jardine Pacific
With Hong Kong's economy continuing in the doldrums, and many
others  within the region similarly weak, Jardine Pacific
did well to increase its underlying net profit in 2002 by
5% to US$81 million.

Shareholders' funds stood at US$471 million at the end of the
year,  a reduction of 10% following the payment of US$139
million in dividends to the parent company. The return on
average   shareholders'  funds,  excluding  non-recurring
items,  rose to 16%, up from 14% in 2001. Net  borrowings
at the end of the year stood at US$156 million, giving  a
gearing of 32%.

The weakness of the Hong Kong economy is holding back a number
of  businesses  from achieving further  growth  in  2003,
particularly  in the construction sector,  but  most  are
well placed to grow again when conditions improve.

The following is summary financial information of the larger
businesses in this portfolio:

                                      Underlying profit              Shareholders' funds
                                      2002         2001              2002           2001
                                      US$m         US$m              US$m           US$m
-------------------------------------------------------------------------------------------
EastPoint                                3            -                 9              7
Gammon Skanska                          12           13                54             61
HACTL                                   23           17               102            110
Jardine Aviation Services                7            6                12             14
Jardine Engineering Corporation          8           14                60             67
Jardine Logistics                       (6)          (5)                4             10
Jardine OneSolution                      2            4                36             64
Jardine Property Investment              5            6               144            160
Jardine Restaurants                      8            8                11             14
Jardine Schindler                       11           11                21             15
Jardine Shipping Services                6            5                11             11
Pacific Finance                          3            2                32             31
Other                                   12            8                68             80
--------------------------------------------------------------------------------------------
                                        94           89               564            644
Corporate                              (13)         (12)              (93)          (120)
--------------------------------------------------------------------------------------------
                                        81           77               471            524
                                       -----------------------------------------------------


The 20% increase in tonnage throughput at Hong Kong's Chek Lap
Kok   airport  enabled  HACTL  to  enjoy  a  record  year,
achieving  1.9 million tonnes for the first time. JARDINE
AVIATION SERVICES continued to perform well in Hong  Kong
following   the  exit  from  its  unprofitable  Australian
operations and a number of other minor businesses. JARDINE
SHIPPING SERVICES  produced another excellent  return  on
capital, despite weak shipping rates.

GAMMON SKANSKA experienced a 31% decline in its order book due
to  exceptionally low levels of activity  in  the  private
building   sector.   Cost  saving  initiatives  and   some
profitable  contracts limited the fall in contribution  in
2002  to  6%, but its performance will be further impacted
in 2003.

JARDINE SCHINDLER'S order intake remained stable, and  its
maintenance  portfolio  grew by over  900  units. JARDINE
ENGINEERING  had  a difficult year, despite  good  results
from  the  Trane joint ventures. A new fire  and  security
surveillance division was established following  the  sale
of the Chubb business in 2000.

JARDINE ONESOLUTION continued to face an environment of weak
corporate IT spending, however, it remained profitable  by
making  significant cuts in its head-count  and  corporate
overhead.  RESTAURANTS had a rather  better  year  with  a
strong result from Pizza Hut Taiwan offsetting the effects
of a difficult Hong Kong fast food market.

In its first full year as an independent company, following its
de-merger   from  Colliers  Jardine,  EASTPOINT   property
management  produced a good performance.   Lower  interest
rates  and  a reduction in personal finance loans  reduced
the  negative  impact on PACIFIC FINANCE of the  difficult
lending   environment  in  Hong  Kong.   JARDINE PROPERTY
INVESTMENT  continued to maintain its  yield,  but  saw  a
further reduction in the overall value of its portfolio.

JARDINE LOGISTICS increased its turnover during the year, but
weak  shipping  rates resulted in higher losses.  It  was,
therefore, decided to merge the business with that of Hong
Kong-listed   freight-forwarder,  BALtrans,   to   achieve
operating  synergies.  The transaction  was  completed  in
January 2003 with Jardine Pacific retaining a 20% interest
in the enlarged business.

In further refinements to Jardine Pacific's portfolio, IKEA in
Hong  Kong  and  Taiwan was sold to Dairy Farm  for  US$27
million producing a profit on sale of US$11 million.   The
50%  stake in Jardine Salmat was also exchanged for  a  4%
stake  in  Salmat  Holdings,  the Australian  joint-venture
partner.

The  earnings from Jardine Pacific's other businesses were
enhanced  by  some strong performances, most  notably  its
Wines  and  Spirits and sugar interests. Central overheads
remained low due to offsetting credits arising from  group
pension  schemes  and  deferred tax credits.  The  central
finance  cost  fell, despite higher borrowings,  with  the
benefit of lower interest rates.

Jardine Motors Group
Jardine Motors Group achieved an underlying net profit of US$39
million, down 23% following a reduced profit in Hong Kong
and additional restructuring costs in the United Kingdom.
A  net  profit  of  US$19 million reflects  the  non-cash
effect  of  charges  for cumulative exchange  translation
differences   arising  from  the  sale  of  the   group's
interests in France and closure costs in India.

In Hong Kong, Zung Fu's sales held up reasonably well in a
particularly  challenging market, although  margins  were
reduced   following  a  new  franchise   agreement   with
DaimlerChrysler.  Mercedes-Benz remains  the  top-selling
luxury car marque in Hong Kong, however, as evidenced  by
the successful launch of the new E-Class in the middle of
the  year.  The  business  in Macau  returned  to  growth
following a revision of import duty regulations to ensure
the  consistent  treatment of  all  imports,  and  it  is
encouraging  that  a  similar  measure  is  under  active
consideration  in  Hong  Kong.   After-sales  performance
remained   strong   and  further  cost  reductions   were
achieved.

There was a positive contribution from Southern China where the
Mercedes-Benz   distribution   joint-venture    increased
deliveries  and  Zung  Fu  expanded  its  service  centre
network.   The contribution from Tunas Ridean,  the  34%-
held Indonesian associate, increased as it benefited from
a stronger Rupiah.

In the United Kingdom, the Lancaster dealerships produced
improved  trading  results in a strong  market,  but  the
overall   result   suffered   from   further   costs   in
restructuring the property portfolio and the exit from  a
shared services business. The Polar Motor Group, a joint-
venture   with   Ford,  recorded  a  lower   contribution
following   a   reduction  in  new-car   gross   margins.
Appleyard  Vehicle  Contracts, the contract  hire  joint-
venture, produced a satisfactory performance.

A resilient luxury car market in the United States produced
steady  volumes  and increased profit in  what  had  been
projected to be a difficult year.

In  2003  Jardine  Motors Group  will  focus  on  further
strengthening the quality of its customer service in Hong
Kong,  expanding  its  network  in  Southern  China   and
improving performance at its UK operations.

Jardine Lloyd Thompson
Jardine Lloyd Thompson achieved record profits again in 2002,
reflecting a combination of organic growth, new  business
wins  and  efficiently  managed operations.   The  harder
insurance  market conditions also contributed as  clients
turned  to  JLT  for solutions to their insurance  needs.
Turnover  in 2002 was £388 million, an increase  of  11%,
and  profit  before tax, exceptional items  and  goodwill
amortisation  grew by 21% to £102 million,  based  on  UK
accounting standards.

In both of the group's main operating areas, Risk & Insurance
and  Employee  Benefits,  very  creditable  results  were
achieved  against  the background of demanding  operating
environments.   Risk  & Insurance again  produced  record
results for JLT, with new business providing most of  the
growth impetus; revenue grew by 16% to £314 million.  Its
Risk Solutions business performed exceptionally well,  as
did Australasia, Asia, Canada and the United Kingdom.

The revenue contribution from Employee Benefits was flat at
£75  million  due  to  a fall-off in its  pension  review
business in the United Kingdom, however, this masked  the
strong   growth  in  actuarial,  consulting  and  pension
administration.  Revenue from long-term contracts won  in
2002 is beginning to flow, and is expected to show in the
results  from 2003.  There is also a strong new  business
pipeline,  which  will contribute the  ambitious  targets
that JLT has set.

JLT has a strong balance sheet and a highly professional and
dedicated workforce. The significant potential of its two
core  business  sectors,  Risk & Insurance  and  Employee
Benefits,  provides the opportunity for continued  growth
notwithstanding  the  prevailing uncertain  economic  and
market conditions.

Hongkong Land
Hongkong Land's average rents and occupancy levels were under
pressure  as  demand  remained  weak,  but  the   company
increased its share of leasing transactions in Central as
tenants  saw  good  value in its  quality  locations  and
buildings.  Underlying earnings for 2002 fell by  10%  to
US$192  million  as  net rental income  fell  by  2%  and
financing  charges rose because of the higher  levels  of
net debt.

The group's annual investment property valuation led to a net
valuation deficit of US$988 million, which was charged to
the  profit  and  loss  account under  the  International
Financial Reporting Standards.  This was the main  factor
in  the  18% reduction of shareholders' funds to US$4,957
million,  which  led to a similar decline  in  net  asset
value per share to US$2.23.

Despite the downturn in Hong Kong's office sector, the group
continues  to  invest  in its core  portfolio.   Its  new
property,  Chater  House, was successfully  completed  in
2002,  and  the anchor tenants in both office and  retail
were  operating before the year end.  The  renovation  of
its  Alexandra House retail podium is under way,  and  is
expected to be complete and substantially let before  the
end  of  2003.  Preparations have also begun for a  major
renovation  of  the  Landmark complex  in  the  heart  of
Central.   Such projects, each of which adds  incremental
revenue,  are  designed  to maximize  the  value  of  the
group's prime assets.

In Singapore, construction of the joint-venture development,
One  Raffles  Quay, is well under way, while the  wholly-
owned  One Raffles Link remains fully let and commands  a
rental  premium.  Hongkong Land also continues to  invest
in  its  residential property business, and progress  was
made  in  the construction of Phase I of Central Park  in
Beijing and of the Belcher's Street site in Hong Kong.

As Hongkong Land's strategy is to focus on its core property
businesses,  the  decision was  made  to  selectively
dispose  of  assets in its infrastructure portfolio  over
time.

In the near term, rentals and values in the group's core Hong
Kong  property  portfolio  will  continue  to  experience
downward  pressure.   However,  the  medium-term  outlook
remains  favourable with no significant supply in Central
from 2004 onwards.

Dairy Farm
Dairy Farm's results achieved a significant improvement from a
broadly  based  increase  in earnings  despite  difficult
economic  conditions. In 2002, the underlying  profit  in
its continuing operations rose by US$69 million to US$102
million.  The result was built on a 7% increase in sales,
including associates, to US$4 billion, combined  with  an
overall reduction in the costs.

Dairy Farm has a strong balance sheet and businesses that are
well  tailored to their individual markets. Its  priority
is  to  build  its  existing operations, with  particular
emphasis on expanding hypermarkets in Southeast Asia  and
on  the development of businesses in China.  To this end,
the group sold its subsidiary in New Zealand producing  a
gain of US$231 million.

The Southeast Asian operations achieved a substantial increase
in   profit   in  2002,  largely  due  to  the   improved
performances in Singapore and Malaysia.  Six hypermarkets
were  opened in Southeast Asia during the year, including
the  first  two in Indonesia. Profits in North Asia  also
showed  significant  improvement.   Mannings  health  and
beauty stores in Hong Kong had an excellent year, and the
performance  of Wellcome Hong Kong also improved  as  the
business continued its turnaround.

The expansion of the 7-Eleven network in Guangdong gathered
pace,  ending the year with 127 outlets, and, in  Taiwan,
Wellcome  increased its stores through  acquisition.   In
December,  Dairy  Farm entered the  South  Korean  market
through  a  joint-venture to operate  health  and  beauty
stores.  The IKEA home furnishings business in Hong  Kong
and Taiwan was purchased in October for US$27 million.

Maxim's, the Hong Kong restaurant joint-venture, produced an
improved  result and continued to expand  its  successful
Starbucks franchise in Hong Kong, Macau and Shenzhen.

Dairy Farm repurchased some 10% of its share capital in 2002
and,  in  light  of its continuing substantial  net  cash
position  of  US$400  million, is proposing  to  offer  a
further  return  of value to shareholders  by  way  of  a
tender offer to repurchase some 11% of its shares.

Mandarin Oriental
Mandarin  Oriental recovered somewhat from the  depressed
conditions  prevailing at the end of  2001  as  occupancy
levels  in most of its key markets improved, but  average
room rates continued to suffer.  Against this challenging
environment,  most  of the group's  hotels  did  well  to
maintain  or improve their competitive position in  their
local market.

The company's consolidated profit before interest and tax for
2002  was  US$55  million, an increase of US$15  million.
This  result  included  a  US$5  million  write-back   of
development costs for Mandarin Oriental, Washington  D.C.
following  the decision to proceed with the project.  Net
profit  was US$19 million, compared with US$4 million  in
the previous year.

The group's hotels that had opened or re-opened over recent
years  achieved  notable  success  in  2002.  In  London,
Mandarin   Oriental  Hyde  Park  markedly  improved   its
competitive   position,   with   the   group's   earnings
benefiting  from an increase in contribution.   In  Kuala
Lumpur   and  Miami,  Mandarin  Oriental's  hotels   have
established  market-leading  positions  that  have   been
clearly recognized through industry awards.

Mandarin  Oriental remains committed to its  strategy  of
consolidating  its  position as one of  the  best  global
luxury  hotel groups, and significant progress  was  made
towards  completion of its current investment  programme.
The  group's new 251-room hotel in New York is  scheduled
to  open in late 2003, and construction is also under way
on  its  400-room hotel in Washington D.C. for completion
in  2004.   Planning  for a 171-room hotel  in  Tokyo  is
proceeding well with completion scheduled for 2006.   The
group will also manage a new 118-room niche luxury sector
hotel  in  Hong Kong's Central District from 2005,  which
will  complement the group's existing flagship,  Mandarin
Oriental, Hong Kong.

The  luxury hotel industry continues to face considerable
challenges and no early recovery can be expected.  At the
same  time,  the pre-opening expenses of the group's  two
new US hotels will negatively affect its results in 2003.
Nevertheless,  Mandarin Oriental's investment  programme,
combined  with  the effect of an upturn in  the  economy,
will benefit it over the longer-term.

Cycle & Carriage
Cycle & Carriage, now 50.2%-held, achieved a satisfactory
result  in  2002  despite  the  generally  weak  economic
environment  in  the  region.   In  particular,   Astra's
performance   benefited  from   strong   demand   and   a
strengthening  of  the  Indonesian  currency.   Cycle   &
Carriage's  underlying profit, before exceptional  items,
rose 57% to S$261 million.

Net profit grew by 92% to S$231 million. The result benefited
from  a  gain  recorded on Astra's foreign currency  debt
caused  by  the  strengthening of the Indonesian  Rupiah,
compared to a loss in the prior year, and the share of  a
gain  on  disposal by Astra, but these were offset  by  a
write-down   in  the  value  of  MCL  Land's   investment
property,  exchange losses on loans to  subsidiaries  and
deferred tax asset write-offs.

Underlying earnings from motor vehicle operations fell 18% to
S$53  million  due  to  a decline in  Singapore's  highly
competitive   market.  The  Australian   motor   business
recorded  a  loss due to reduced Hyundai unit  sales  and
margins, while the New Zealand motor operations more than
doubled  their  profits. Growth in the  non-national  car
sector  in  Malaysia enabled Cycle & Carriage Bintang  to
increase its sales and profits, but the agreement reached
for   DaimlerChrysler  to  take  over  the  Mercedes-Benz
distribution  rights  from  January  2003  will  have  an
adverse impact on future profitability.

The contribution from property, excluding exceptional items,
increased from S$14 million to S$40 million. There was  a
good  increase  in  the  earnings of  66%-held  MCL  Land
arising   from  the  successful  sale  of  a  number   of
residential developments in Singapore.

Economic stability in Indonesia assisted Astra's strong growth
and  enabled it to increase its earnings contribution  to
S$185   million,   up  74%.   Astra's  motor   businesses
benefited from improved markets, with particularly strong
growth  in  motor  cycles, while  its  agribusiness  grew
significantly  due to the escalation in  crude  palm  oil
prices.   In  December,  Astra's creditors  approved  the
restructuring of its debt, which was followed in  January
2003  by  a S$280 million rights issue, in which Cycle  &
Carriage  participated to the extent  of  S$135  million.
This,  together with market purchases, has enabled it  to
increase its stake in Astra to 34.3%.

Cycle & Carriage's performance will continue to be influenced
in  2003  by the unsettled economic conditions,  and  the
level of its attributable profit will also be affected by
the value of the Indonesian Rupiah.



                      This information is provided by RNS
            The company news service from the London Stock Exchange