Final Results - Part 2

Jardine Matheson Hldgs Ld 27 February 2001 Part 2 of 2 ----------------------------------------------------------------------- Jardine Matheson Holdings Limited Consolidated Profit and Loss Account for the year ended 31st December 2000 ----------------------------------------------------------------------- 2000 1999 US$m US$m ----------------------------------------------------------------------- Revenue (note 2) 10,362.1 10,674.8 Cost of sales (7,819.0) (8,039.7) -------- -------- Gross profit 2,543.1 2,635.1 Other operating income 130.2 88.2 Selling and distribution costs (1,829.3) (1,847.6) Administration expenses (611.3) (652.2) Other operating expenses (129.3) (61.2) Profit on sale of Robert Fleming (note 3) 834.5 - Impairment of assets in Dairy Farm (note 4) (129.4) - -------- -------- Operating profit (note 5) 808.5 162.3 Net financing charges (106.4) (68.3) Share of results of associates and joint ventures (note 6) 350.0 292.8 -------- -------- Profit before tax 1,052.1 386.8 Tax (note 7) (111.3) (92.2) -------- -------- Profit after tax 940.8 294.6 Outside interests (10.0) (87.2) -------- -------- Net profit (note 8) 930.8 207.4 -------- -------- ----------------------------------------------------------------------- USc USc -------- -------- Earnings per share (note 10) - basic 168.14 34.26 - diluted 167.62 34.22 Earnings per share excluding non- recurring items (note 10) - basic 35.22 29.07 - diluted 35.12 29.04 Dividends per share - interim 7.80 7.80 - proposed final 18.70 17.20 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Jardine Matheson Holdings Limited Consolidated Balance Sheet at 31st December 2000 ----------------------------------------------------------------------- 2000 1999 US$m US$m ----------------------------------------------------------------------- Net operating assets Goodwill 50.5 114.1 Tangible assets 2,611.2 2,742.4 Associates and joint ventures 3,403.9 2,975.4 Other investments 976.4 398.6 Deferred tax assets 31.3 26.3 Pension assets 85.5 81.1 ------- ------- Non-current assets 7,158.8 6,337.9 Stocks and work in progress 972.3 1,111.5 Debtors and prepayments 812.3 878.7 Bank balances and other liquid funds 1,375.7 1,601.4 ------- ------- Current assets 3,160.3 3,591.6 ------- ------- Creditors and accruals (2,129.2) (2,320.6) Borrowings (383.7) (555.6) Current tax liabilities (33.1) (30.9) Provisions (41.8) (43.9) ------- ------- Current liabilities (2,587.8) (2,951.0) ------- ------- Net current assets 572.5 640.6 Long-term borrowings (2,742.4) (1,553.7) Deferred tax liabilities (76.8) (77.1) Pension liabilities (12.6) (14.2) Other non-current liabilities (80.6) (9.5) ------- ------- 4,818.9 5,324.0 ======= ======= Capital employed Share capital 155.7 199.3 Share premium and contributed surplus - 345.1 Revenue and other reserves 3,802.2 3,051.2 Own shares held (629.8) (489.6) ------- ------- Shareholders' funds (note 8) 3,328.1 3,106.0 Outside interests 1,490.8 2,218.0 ------- ------- 4,818.9 5,324.0 ======= ======= ----------------------------------------------------------------------- ----------------------------------------------------------------------- Jardine Matheson Holdings Limited Consolidated Statement of Changes in Shareholders' Funds for the year ended 31st December 2000 ----------------------------------------------------------------------- 2000 1999 US$m US$m ----------------------------------------------------------------------- At 1st January 3,106.0 2,931.6 Property revaluation 556.3 78.0 Deferred tax on property revaluation (1.0) (2.8) Net exchange translation differences - amount arising in year (85.9) (13.5) - disposal of subsidiary undertakings, associates and joint ventures 55.6 0.6 Other 1.3 0.4 Net gains not recognised in consolidated profit and loss account 526.3 62.7 Net profit 930.8 207.4 Dividends (note 11) (137.3) (130.6) Exercise of share options 1.3 1.1 Scrip issued in lieu of dividends 104.2 88.8 Repurchase of shares (1,065.2) - Change in attributable interests 2.2 2.2 Increase in own shares held (140.2) (57.2) ------- ------- At 31st December 3,328.1 3,106.0 ======= ======= --------------------------------------------------------------------- --------------------------------------------------------------------- Jardine Matheson Holdings Limited Consolidated Cash Flow Statement for the year ended 31st December 2000 --------------------------------------------------------------------- 2000 1999 US$m US$m --------------------------------------------------------------------- Operating activities Operating profit 808.5 162.3 Depreciation and amortisation 242.6 236.8 Other non-cash items (700.3) (22.9) Decrease in working capital 2.7 124.0 Interest received 68.8 81.1 Interest and other financing charges paid (160.5) (142.5) Tax paid (41.5) (46.7) ------- ------- 220.3 392.1 Dividends from associates and joint ventures 210.2 183.6 Cash flows from operating activities 430.5 575.7 Investing activities Purchase of subsidiary undertakings (note 12) (1,010.3) (218.6) Purchase of associates and joint ventures (note 12) (91.9) (115.0) Purchase of other investments (18.0) (35.6) Purchase of tangible assets (318.8) (382.4) Sale of subsidiary undertakings (note 12) 35.3 40.1 Sale of associates and joint ventures (note 12) 748.8 138.7 Sale of other investments 3.6 17.0 Sale of tangible assets 28.8 58.5 Cash flows from investing activities (622.5) (497.3) Financing activities Issue of shares 1.3 1.1 Repurchase of shares (992.0) - Capital contribution from outside shareholders 16.5 3.3 Drawdown of borrowings 4,074.5 6,114.1 Repayment of borrowings (2,922.1) (6,046.9) Dividends paid by the company (78.5) (76.7) Dividends paid to outside shareholders (103.9) (208.3) Cash flows from financing activities (4.2) (213.4) Effect of exchange rate changes (34.6) 2.2 ------- ------- Net decrease in cash and cash equivalents (230.8) (132.8) Cash and cash equivalents at 1st January 1,548.3 1,681.1 ------- ------- Cash and cash equivalents at 31st December 1,317.5 1,548.3 ======= ======= --------------------------------------------------------------------- Jardine Matheson Holdings Limited Notes --------------------------------------------------------------------- 1. ACCOUNTING POLICIES AND BASIS OF PREPARATION The financial information contained in this announcement has been based on the audited results for the year ended 31st December 2000 which have been prepared in conformity with International Accounting Standards. There have been no changes to the accounting policies described in the 1999 financial statements. 2. REVENUE 2000 1999 US$m US$m ------- ------- By business: Jardine Pacific 1,793.6 1,705.6 Jardine Motors Group 2,550.5 2,806.6 Dairy Farm 5,733.0 5,917.9 Mandarin Oriental 227.0 179.2 Other activities 58.0 65.5 ------- ------- 10,362.1 10,674.8 ======= ======= 3. PROFIT ON SALE OF ROBERT FLEMING In August 2000, the Group disposed of its interests in Robert Fleming for a total consideration of US$1,215.0 million of which US$648.7 million was settled in cash and US$566.3 million in shares of common stock of the Chase Manhattan Corporation (subsequently renamed J.P. Morgan Chase & Co.). The profit attributable to the Group, after tax and outside interests, amounted to US$766.7 million of which US$631.1 million arises in the Company and US$135.6 million relates to the interests held by Jardine Strategic (note 9). 4. IMPAIRMENT OF ASSETS IN DAIRY FARM At the year end, the Directors have reviewed the carrying value of Dairy Farm's assets and have concluded that it is appropriate to make impairment write down against certain assets. As a result, impairment losses were recorded against goodwill in Australia of US$14.5 million, and against tangible assets in Australia and Hong Kong of US$114.9 million. The loss attributable to the Group, after tax and outside interests, amounted to US$50.5 million (note 9). 5. OPERATING PROFIT 2000 1999 US$m US$m ------- ------- By business: Jardine Pacific 53.2 34.2 Jardine Motors Group 63.6 52.9 Dairy Farm (54.1) 30.1 Mandarin Oriental 40.2 31.5 ------- ------- 102.9 148.7 Corporate and other interests (3.6) (15.9) Non-recurring items (note 8) 709.2 29.5 ------- ------- 808.5 162.3 ======= ======= 6. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES 2000 1999 US$m US$m ----- ----- By business: Jardine Pacific 80.7 61.0 Jardine Motors Group (9.9) (0.1) Jardine Lloyd Thompson 32.5 31.5 Robert Fleming 67.6 46.3 Dairy Farm 35.6 23.4 Hongkong Land 96.3 105.9 Mandarin Oriental 7.3 8.9 Cycle & Carriage 17.0 20.3 ----- ----- 327.1 297.2 Corporate and other interests 0.3 0.2 Non-recurring items (note 9) 22.6 (4.6) ----- ----- 350.0 292.8 ===== ===== 7. TAX 2000 1999 US$m US$m ------- ------- Company and subsidiary undertakings 41.5 26.8 Associates and joint ventures 69.8 65.4 ------- ------- 111.3 92.2 ======= ======= Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates and includes United Kingdom tax of US$11.5 million (1999: US$21.0 million). 8. NET PROFIT AND SHAREHOLDERS' FUNDS Net profit Shareholders' funds 2000 1999 2000 1999 US$m US$m US$m US$m ------- ------- ------- ------- Jardine Pacific 93.1 53.9 559.0 629.8 Jardine Motors Group 20.5 15.9 329.9 310.4 Jardine Lloyd Thompson 19.1 19.0 64.4 57.5 Robert Fleming 44.1 24.5 - 264.0 Dairy Farm (23.0) 14.5 259.0 299.2 Hongkong Land 57.1 58.3 1,785.4 994.8 Mandarin Oriental 9.5 5.9 406.6 252.8 Cycle & Carriage 6.9 7.8 137.4 110.2 ------- ------- ------- ------- 227.3 199.8 3,541.7 2,918.7 Corporate and other interests (32.3) (23.8) (213.6) 187.3 ------- ------- ------- ------- 195.0 176.0 3,328.1 3,106.0 ======= ======= Non-recurring items (note 9) 735.8 31.4 ------- ------- 930.8 207.4 ======= ======= Jardine Pacific and Jardine Motors Group are further analysed as follows: Jardine Pacific Gammon Construction 14.7 11.7 65.8 57.2 HACTL 16.1 8.0 106.6 105.9 IKEA 6.0 (0.4) 12.4 12.5 Jardine Aviation Services 4.0 4.6 20.2 28.0 Jardine Engineering Corporation 15.0 17.1 60.0 89.0 Jardine OneSolution 8.3 7.9 90.3 75.6 Jardine Property Investment 6.0 6.6 165.8 178.1 Jardine Restaurants 8.4 4.0 17.7 32.5 Jardine Schindler 8.3 8.2 23.9 34.2 Jardine Shipping Services 6.5 5.6 10.1 12.6 Pacific Finance 4.4 3.0 29.4 28.8 Other 6.9 2.4 95.2 111.6 ------- ------- ------- ------- 104.6 78.7 697.4 766.0 Corporate (11.5) (24.8) (138.4) (136.2) ------- ------- ------- ------- 93.1 53.9 559.0 629.8 ======= ======= ======= ======= Jardine Motors Group Hong Kong and Mainland China 41.7 29.6 120.5 115.1 United Kingdom (25.4) (21.7) 70.0 67.8 France 3.3 5.0 61.3 45.2 United States 0.9 2.3 12.6 3.7 ------- ------- ------- ------- 20.5 15.2 264.4 231.8 Corporate and other interests - 0.7 65.5 78.6 ------- ------- ------- ------- 20.5 15.9 329.9 310.4 ======= ======= ======= ======= Jardine Motors Group was privatised on 3rd October 2000 and became a wholly-owned subsidiary undertaking. The net profit and shareholders' funds prior to privatisation represented the Group's 74.9% share. Negative goodwill arising from privatisation and amortisation thereon were included in Corporate and other interests. 9. NON-RECURRING ITEMS 2000 1999 Gross Net Gross Net US$m US$m US$m US$m ----- ----- ----- ----- By nature: Discontinued activities - Robert Fleming 834.5 766.7 - - - Chubb China 57.9 57.9 - - - Central Registration - - 23.3 23.3 - Matheson Investment - - 27.7 24.9 - financial services businesses 15.8 15.8 - - - other 18.2 15.3 (3.6) (3.6) 926.4 855.7 47.4 44.6 Impairment of assets - Jardine Motors Group (40.2) (34.1) (1.6) (0.8) - Dairy Farm (129.4) (50.5) (5.6) (1.9) - other (41.8) (40.0) (9.4) (9.0) (211.4) (124.6) (16.6) (11.7) Sale and revaluation of properties - Hongkong Land 39.8 26.8 0.8 0.5 - other (9.8) (9.6) (3.1) - 30.0 17.2 (2.3) 0.5 Onerous leases and lease exit costs (12.6) (9.8) (3.6) (2.0) Other (0.6) (2.7) - - ------- ------- ------- ------ 731.8 735.8 24.9 31.4 ======= ======= ======= ====== By business: Jardine Pacific 16.5 18.9 5.8 9.0 Jardine Motors Group (63.5) (53.2) (8.5) (5.3) Jardine Lloyd Thompson 4.6 4.4 1.1 0.7 Dairy Farm (129.4) (50.5) (7.9) (2.6) Hongkong Land 44.0 29.7 0.8 0.5 Mandarin Oriental 3.8 1.6 - - Cycle & Carriage 6.1 2.8 3.3 1.4 Corporate and other interests 849.7 782.1 30.3 27.7 ------- ------ ------ ------ 731.8 735.8 24.9 31.4 ======= ======= ====== ===== Included in: Operating profit 709.2 29.5 Share of results of associates and joint ventures 22.6 (4.6) ------- ------- 731.8 24.9 ======= ====== Gross non-recurring items are shown before net financing charges and tax. Net non-recurring items are shown after net financing charges, tax and outside interests. 10. EARNINGS PER SHARE Basic earnings per share are calculated on net profit of US$930.8 million (1999: US$207.4 million) and on the weighted average number of 553.6 million (1999: 605.4 million) shares in issue during the year. The weighted average number excludes the Company's share of the shares held by subsidiary undertakings and the shares held by the Trustee under the Senior Executive Share Incentive Schemes. Diluted earnings per share are calculated on the weighted average number of 555.3 million (1999: 606.1 million) shares after adjusting for the number of shares which are deemed to be issued for no consideration under the Senior Executive Share Incentive Schemes based on the average share price during the year. Earnings per share excluding non-recurring items are calculated on the net profit after adjusting for non- recurring profits of US$735.8 million (1999: US$31.4 million). 11. DIVIDENDS 2000 1999 US$m US$m ------ ------ Final dividend in respect of 1999 of USc17.20 (1998: USc13.80) per share 137.1 107.1 Interim dividend in respect of 2000 of USc7.80 (1999: USc7.80) per share 49.3 61.6 ------ ------ 186.4 168.7 Less Company's share of dividends paid on the shares held by subsidiary undertakings (49.1) (38.1) undertakings ------ ------ 137.3 130.6 ======= ======= A final dividend in respect of 2000 of USc18.70 (1999: USc17.20) per share amounting to a total of US$116.5 million (1999: US$137.1 million) is proposed by the Board. The dividend proposed will not be accounted for until it has been approved at the Annual General Meeting. The net amount after deducting the Company's share of the dividends payable on the shares held by subsidiary undertakings of US$43.2 million (1999: US$32.1 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2001. 12. NOTES TO CONSOLIDATED CASH FLOW STATEMENT Purchase of subsidiary undertakings Purchase of subsidiary undertakings included the Company's increased interests in Jardine Motors Group and Jardine Strategic of US$69.4 million and US$235.8 million respectively, Jardine Strategic's increased interests in Dairy Farm, Mandarin Oriental and Connaught Investors of US$27.1 million, US$27.1 million and US$207.9 million respectively, Jardine Strategic repurchase of its own shares of US$259.5 million and Mandarin Oriental's acquisition of The Rafael Group of US$134.6 million. Purchase of associates and joint ventures Purchase of associates and joint ventures included Jardine Strategic's increased interest in Hongkong Land of US$37.5 million. Sale of subsidiary undertakings Sale of subsidiary undertakings included the Group's stockbroking and investment management businesses in the United Kingdom and its international trust business of US$22.3 million. Sale of associates and joint ventures Sale of associates and joint ventures included net proceeds from the sale of the Group's interests in Robert Fleming of US$639.0 million and Jardine Pacific's sale of Chubb China of US$69.9 million. 13. ANNUAL REPORT The Annual Report will be posted to shareholders on or about 11th April 2001. Copies may be obtained from Jardine Matheson International Services Limited, P.O. Box HM 1068, Hamilton HM EX, Bermuda; Capita IRG Plc, Bourne House, 34 Beckenham Road, Beckenham, Kent BR3 4TU, England and M&C Services Private Limited, 138 Robinson Road number 17-00, Hong Leong Centre, Singapore 068906. The final dividend of USc18.70 per share will be payable on 24th May 2001, subject to approval at the Annual General Meeting to be held on 17th May 2001, to shareholders on the register of members at the close of business on 23rd March 2001, and will be available in cash with a scrip alternative. The ex-dividend date will be on 21st March 2001, and the share registers will be closed from 26th to 30th March 2001, inclusive. Shareholders will receive their cash dividends in United States Dollars, unless they are registered on the Jersey branch register where they will have the option to elect for Sterling. These shareholders may make new currency elections by notifying the United Kingdom transfer agent in writing by 4th May 2001. The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing ten business days prior to the payment date. Shareholders holding their shares through The Central Depository (Pte) Limited ('CDP') in Singapore will receive United States Dollars unless they elect, through CDP, to receive Singapore Dollars or the scrip alternative. For further information, please contact: Jardine Matheson Limited Norman Lyle (852) 2843 8216 Matheson & Co. Limited Martin Henderson (44) 20 7816 8135 Golin/Harris Forrest Sue Gourlay (852) 2501 7936 Golin/Harris Ludgate Richard Hews (44) 20 7324 8888 Trish Featherstone Full text of the Preliminary Announcement of Results and the Preliminary Financial Statements for the year ended 31st December 2000 can be accessed throught the Internet at 'www.jardines.com'. Note to Editors Jardine Matheson is a multinational Group of seven core businesses focused primarily on the Asia-Pacific region. Its operations employ some 150,000 people and its activities are leaders in the fields of supermarkets, consumer marketing, engineering and construction, insurance broking, motor trading, property and hotels. The Group has undergone a sustained shift in emphasis over recent years as businesses that did not present the opportunity for profitable scale or market leadership have been exited. The Group is building its core businesses largely in Asia Pacific with the goal of enhancing shareholder value for the long term. The primary listing of the parent company, Jardine Matheson Holdings Limited, is in London, with secondary listings in Singapore and in Bermuda. The Company is incorporated in Bermuda and the Group is managed from Hong Kong by Jardine Matheson Limited.

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