Interim Results- Part 2
Jardine Matheson Hldgs Ld
30 July 2003
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Jardine Matheson Holdings Limited
Notes
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1. Accounting Policies and Basis of Preparation
The unaudited interim condensed financial statements have
been prepared in accordance with IAS 34 - Interim
Financial Reporting.
There have been no changes to the accounting policies
described in the 2002 annual financial statements. As in
2002, the Group is required to account for leasehold land
in respect of investment and other properties at
amortized cost in order to comply with IFRS. 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
on pages 10 to 14 and pages 17 to 18 prepared in
accordance with IFRS as modified by the revaluation of
leasehold properties.
The Directors continue to review the appropriateness of the
Group's accounting policies and disclosures in the light
of developments in IFRS.
The Group's reportable segments are set out in note 2 and are
described on pages 5 to 9.
2. Revenue
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
---------------------------------
By business:
Jardine Pacific 580 774
Jardine Motors Group 954 1,047
Dairy Farm 1,660 1,802
Mandarin Oriental 90 112
Cycle & Carriage 916 -
Other activities 1 -
-------- --------
4,201 3,735
-------- --------
3. Operating Profit
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
---------------------------------
By business:
Jardine Pacific 13 15
Jardine Motors Group 28 13
Dairy Farm 46 24
Mandarin Oriental 7 23
Cycle & Carriage 32 -
-------- --------
126 75
Discontinued operation - Woolworths
in Dairy Farm - 16
Net profit on disposal of Woolworths
in Dairy Farm - 225
Corporate and other interests (21) (3)
-------- --------
105 313
-------- --------
4. Share of Results and Associates and Joint Ventures
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
---------------------------------
By business:
Jardine Pacific 30 38
Jardine Motors Group 7 6
Jardine Lloyd Thompson 26 24
Hongkong Land 22 21
Dairy Farm 7 15
Mandarin Oriental 2 7
Cycle & Carriage 128 42
-------- --------
222 153
Decrease in fair value of investment
properties - (3)
-------- --------
222 150
-------- --------
5. Tax
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
---------------------------------
Company and subsidiary undertakings 24 24
Associates and joint ventures 59 44
-------- --------
83 68
-------- --------
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$8 million (2002:
US$6 million).
6. Earnings Per Share
Basic earnings per share are calculated on net profit of US$88
million (2002: US$195 million) and on the weighted average
number of 367 million (2002: 378 million) shares in issue
during the period. 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 369 million (2002: 379 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 period.
Additional basic and diluted earnings per share reflecting the
revaluation of leasehold properties are calculated on net
loss of US$200 million (2002: net profit of US$32 million)
as shown in the supplementary financial information.
Additional basic and diluted earnings per share are also
calculated based on underlying earnings. The difference
between underlying net profit and net profit/(loss) is
reconciled as follows:
Prepared in accordance with
Prepared in accordance IFRS as modified by revaluation
with IFRS of leasehold properties
Six months ended 30th June Six months ended 30th June
2002 2003 2003 2002
US$m US$m US$m US$m
---------------------------- ----------------------------
101 113 Underlying net profit 122 109
Decrease in fair value
of investment properties
------- ------- ------- -------
- - - Hongkong Land (310) (189)
(1) (2) - other (2) (1)
------- ------- ------- -------
(1) (2) (312) (190)
Discontinued operation
------- ------- ------- -------
- net profit of Woolworths in
5 - Dairy Farm - 5
- net profit on disposal of
119 - Woolworths in Dairy Farm - 119
------- ------- ------- -------
124 - - 124
Sale and closure of businesses
------- ------- ------- -------
(14) - - Cica - (14)
3 1 - other 1 3
------- ------- ------- -------
(11) 1 1 (11)
Asset impairment
------- ------- ------- -------
(18) (13) - Hongkong Land - -
(2) (7) - other (7) (2)
------- ------- ------- -------
(20) (20) (7) (2)
Fair value (loss)/gain on conversion
option component of 4.75%
3 (7) Guaranteed Bonds due 2007 (7) 3
'
- 3 Gain on restructuring of debt 3 -
(1) - Realization of exchange losses* - (1)
------- ------- ------- -------
195 88 Net profit/(loss) (200) 32
------- ------- ------- -------
* Arising on repatriation of capital from foreign subsidiary undertakings,
associates and joint ventures.
7. Dividends
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
-----------------------------------
Final dividend in respect of 2002 of USc22.20
(2001: USc18.70) per share 136 115
Less Company's share of dividends paid on the shares
held by subsidiary undertakings (54) (44)
-------- --------
82 71
-------- --------
An interim dividend in respect of 2003 of USc7.80 (2002:
USc7.80) per share amounting to a total of US$48 million
(2002: US$48 million) is declared by the Board. The net
amount after deducting the Company's share of the
dividends payable on the shares held by subsidiary
undertakings of US$19 million (2002: US$19 million) will
be accounted for as an appropriation of revenue reserves
in the year ending 31st December 2003.
8. Notes to Consolidated Cash Flow Statement
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
(a) Purchase of subsidiary undertakings US$m US$m
-----------------------------------
Purchase of shares in Jardine Strategic - 37
Purchase of shares in Mandarin Oriental 7 17
Repurchase of own shares in Dairy Farm 178 130
Store acquisitions in Dairy Farm 27 -
Other 5 10
-------- --------
217 194
-------- --------
(b) Purchase of associates and joint ventures in the six
months ended 30th June 2003 included Cycle & Carriage's
increased interest in Astra of US$87 million. Purchase of
associates and joint ventures in the six months ended 30th
June 2002 included investment in Mandarin Oriental, New
York of US$15 million.
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
(c) Sale of subsidiary undertakings US$m US$m
-----------------------------------
Goodwill 2 2
Tangible assets 9 143
Associates and joint ventures 1 2
Other investments - 1
Deferred tax assets - 8
Pension assets 3 -
Current assets 65 192
Current liabilities (46) (151)
Long-term borrowings - (65)
Deferred tax liabilities (1) (4)
Other non-current liabilities - (7)
Outside interests - (1)
-------- --------
Net assets disposed of 33 120
Cumulative exchange translation differences - 14
(Loss)/profit on disposal (2) 212
-------- --------
Sale proceeds 31 346
Adjustment for accrual of disposal
costs and deferred consideration - 4
Adjustment for carrying value in
other investments (20) -
Cash and cash equivalents of
subsidiary undertakings
disposed of (1) 3
-------- --------
Net cash inflow 10 353
-------- --------
Net cash inflow in 2003 of US$10 million included Jardine
Motors Group's sale of dealerships in the United Kingdom
of US$8 million. Net cash inflow in 2002 of US$353
million included Jardine Motors Group's sale of Cica of
US$72 million and Dairy Farm's sale of Woolworths, New
Zealand of US$274 million.
(d) Sale of other investments in the six months ended 30th
June 2003 included a distribution from Edaran Otomobil
Nasional of US$36 million following its asset divestment
in 2002.
9. Capital Commitments and Contingent Liabilities
At 31st
At 30th June December
2003 2002 2002
US$m US$m US$m
---------------------------
(a) Capital commitments 229 200 198
------- ------- -------
(b) Contingent liabilities
- guarantees in respect of
facilities made available to
associates and joint ventures 115 124 116
- other guarantees - 5 -
------- ------- -------
Various Group companies are involved in litigation arising in
the ordinary course of their respective businesses.
Having reviewed outstanding claims and taking into account
legal advice received, the Directors are of the opinion
that adequate provisions have been made in the financial
statements.
The interim dividend of USc7.80 per share will be payable on
15th October 2003 to shareholders on the register of
members at the close of business on 22nd August 2003, and
will be available in cash with a scrip alternative. The
ex-dividend date will be on 20th August 2003, and the
share registers will be closed from 25th to 29th August
2003, 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 25th September 2003.
The Sterling equivalent of dividends declared in United
States Dollars will be calculated by reference to a rate
prevailing on 2nd October 2003. 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.
- end -
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
Katherine Wang (852) 2501 7984
Weber Shandwick Square Mile
Richard Hews/ Christian San Jose (44) 20 7067 0700
This and other Group announcements can be accessed through
the Internet at 'www.jardines.com'.
With reference to the rights issue of ordinary shares
announced by Cycle & Carriage Limited on 29th July 2003,
these materials are not an offer of securities for sale
into the United States. The securities may not be offered
or sold in the United States unless they are registered or
exempt from registration and any public offering of
securities to be made in the United States will be made by
means of a prospectus that may be obtained from the issuer
and that will contain detailed information about the
issuer and management, as well as financial statements.
Note to Editors
The Jardine Matheson Group
With its broad portfolio of market-leading businesses, the
Jardine Matheson Group is an Asian-based conglomerate with
extensive experience in the region. Its business
interests include Jardine Pacific, Jardine Motors Group,
Hongkong Land, Dairy Farm, Mandarin Oriental, Cycle &
Carriage and Jardine Lloyd Thompson. These companies are
leaders in the fields of engineering and construction,
consumer marketing, motor trading, property, retailing,
hotels and insurance broking.
The Group's strategy is to build its operations into
market leaders across Asia Pacific, each with the support
of Jardine Matheson's extensive knowledge of the region
and its long-standing relationships. Through a balance of
cash producing activities and investment in new
businesses, the Group aims to produce sustained growth in
shareholder value.
Incorporated in Bermuda, Jardine Matheson has its primary
share listing in London, with secondary listings in
Singapore and Bermuda. It has a sponsored American
Depositary Receipt programme. Jardine Matheson Limited
operates from Hong Kong and provides management services
to Group companies, making available senior management and
providing financial, legal, human resources and treasury
support services throughout the Group.
This information is provided by RNS
The company news service from the London Stock Exchange