2016 PRELIMINARY ANNOUNCEMENT OF RESULTS

RNS Number : 0804Y

Jardine Matheson Hldgs Ltd

02 March 2017

 

To:    Business Editor                                                                          2nd March 2017

                                                                                                            For immediate release

The following announcement was issued today to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom.

Jardine Matheson Holdings Limited

2016 Preliminary Announcement of Results

Highlights

·     Underlying profit* up 2%

·     Full-year dividend up 3%

·     Sound trading performances from across Group operations

·     Regional economies remain resilient

·     Material increase in value of the Hongkong Land property portfolio

"After a steady result for the Jardine Matheson Group in 2016, the current year will see our businesses concentrating on improving their underlying performances and investing in key areas for future growth."

Sir Henry Keswick, Chairman

Results

Year ended 31st December
	2016 US$m	2015 US$m restated†	Change %
Gross revenue including 100% of associates and joint ventures	72,437	65,271	+11
Underlying profit* before tax	3,729	3,507	+6
Underlying profit* attributable to shareholders	1,386	1,360	+2
Profit attributable to shareholders	2,503	1,799	+39
Shareholders' funds	21,800	19,886	+10
	US$	US$	%
Underlying earnings per share*	3.71	3.64	+2
Earnings per share	6.69	4.82	+39
Dividends per share	1.50	1.45	+3
Net asset value per share	58.15	53.30	+9
* The Group uses 'underlying profit' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in note 1 to the financial statements.  Management considers this to be a key measure which provides additional information to enhance understanding of the Group's underlying business performance. † Restated due to a change in accounting policy as set out in note 1 to the financial statements.

The final dividend of US$1.12 per share will be payable on 11th May 2017, subject to approval at the Annual General Meeting to be held on 4th May 2017, to shareholders on the register of members at the close of business on 17th March 2017 and will be available in cash with a scrip alternative. 

Jardine Matheson Holdings Limited

Preliminary Announcement of Results

For The Year Ended 31st December 2016

Overview

The Jardine Matheson Group produced a satisfactory result for the year as most of its businesses traded well.  Good performances were seen in Jardine Motors and most of Jardine Pacific's activities.  Dairy Farm made further progress in highly competitive retail markets and steady performances were seen in Hongkong Land's operations.  Astra produced some very good trading results, although its profit growth was held back by provisions in its banking affiliate, while Jardine Cycle & Carriage saw good contributions from its non-Astra interests.  The results of both Mandarin Oriental and Jardine Lloyd Thompson suffered from challenges in their respective markets.  The Group's balance sheet benefited from enhanced asset values in Hongkong Land.

Performance

The Group's revenue for 2016, including 100% of revenue from associates and joint ventures, was US$72.4 billion, compared with US$65.3 billion in 2015.  Jardine Matheson achieved an underlying profit before tax for the year of US$3,729 million, an increase of 6%.  The underlying profit attributable to shareholders was up 2% at US$1,386 million, while underlying earnings per share were 2% higher at US$3.71.

The profit attributable to shareholders for the year was US$2,503 million, which included the Group's US$1.1 billion share of an increase in the value of Hongkong Land's investment property portfolio.  This compares with US$1,799 million in 2015, that included a more modest increase in property valuations.

The Group's financial position remains strong with shareholders' funds up 10% at US$21.8 billion.  At the end of 2016, the consolidated net debt excluding financial services companies was US$2.1 billion, representing gearing of 4%, compared with US$3.0 billion at the end of 2015 with gearing of 6%.

The Board is recommending a final dividend of US$1.12 per share, which increases the dividend by 3% for the full year to US$1.50 per share.

Business Developments

With most of the Group's businesses concentrated in Greater China and Southeast Asia, they benefit from the ongoing economic development of the Region and the demands for products and services from a growing middle class.  Despite China's ongoing economic challenges, its economy saw relatively stable growth during 2016, with retail sales in particular showing promise at the year end.  During the year, the Group continued the development of its business networks and operating activities in key commercial centres across the Mainland, and produced good performances in the retail, property and motor sectors.  In Southeast Asia, Astra in Indonesia was able to capture market share in the automotive segment with new model launches, while increases in raw material prices should bring further benefits.

Jardine Pacific saw steady trading in most of its businesses during 2016, although Gammon's result was affected by a problem civils contract.  The group is seeking expansion opportunities, both in the development of its existing operations and by identifying new interests where it can apply its specialist knowledge and expertise.

Jardine Motors enjoyed a very good year as Zung Fu's mainland China operations achieved increased sales and higher margins.  In Hong Kong, Zung Fu is repositioning its sales and service facilities, where proceeds from the disposal of existing properties are being reinvested in new facilities designed to meet the evolving requirements of its customers.  Jardine Strategic's motor dealership affiliate, Zhongsheng, also benefited from the strengthening of the Mainland market and reported much improved profitability.

Jardine Lloyd Thompson reported a good result set against the continued challenging economic and trading environment.  The weakness of sterling in the second half was a positive factor in JLT's reported results, although the benefit was largely reversed on consolidation in the Group's US dollar results.

Hongkong Land had another good year as its commercial markets remained relatively firm and there was another steady contribution from residential property developments.  The value of the group's commercial portfolio in Hong Kong increased by 12% due to office capitalization rates falling further with strong investment demand and rental growth.  The group is currently developing a range of commercial and residential projects in mainland China and Southeast Asia, while its strong financial position with ample liquidity and low gearing is allowing it to pursue further opportunities in its chosen markets.

Dairy Farm produced sound profit growth in retail markets that remained highly competitive.  Its Hong Kong operations continued to trade well, but challenges persisted for a number of its Southeast Asian banners, particularly in Malaysia.  In mainland China, Yonghui saw a strong profit improvement, and its contribution was enhanced by the inclusion of its results for a full twelve months.  Dairy Farm is making progress in its transformation to compete effectively in an evolving retail landscape, which it is supporting with investment in its supply chain, IT infrastructure and systems, and in the skills and expertise of its people.

Mandarin Oriental's hotels remained focused on maintaining or enhancing their market leadership positions, but weaker demand in the group's key cities of Hong Kong, London and Paris meant that its earnings were lower.  Mandarin Oriental continues to pursue expansion opportunities around the world and has a number of hotel management contracts at various stages of development.  It recently announced a management contract for a new hotel and residences in Honolulu, Hawaii to open in 2020.

Jardine Cycle & Carriage produced a satisfactory performance in 2016 as Astra's results improved, the Indonesian rupiah exchange rate was stable, and there were increased contributions from its other interests.  The group is pursuing expansion in Southeast Asia, through supporting the growth of Astra in Indonesia, strengthening its other motor interests, and investing in market-leading companies that provide exposure to new business sectors. 

Astra had a better year in 2016.  Strong performances from its automotive businesses led to increased market shares of 56% for cars and 74% for motorcycles.  Most of the group's financial services businesses performed well, with the principal exception of Permata Bank where a material increase in its loan-loss provisions led to a significant loss.  Prospects for Astra's heavy equipment and mining activities improved in the final quarter as coal prices started to recover.  Its agribusiness also benefited from rising crude palm oil prices, although its 2016 performance was hampered by lower production due to the effects of poor weather.  Astra continues to seek investment opportunities in Indonesia to expand its existing activities and move into new sectors, and during the year took additional stakes in toll roads and progressed its property development interests.

People

The strong trading performances achieved by our businesses in the face of uncertain and disruptive markets are a reflection of the hard work, dedication and professionalism of the Group's 430,000 employees, for which we are most grateful.

Jeremy Parr joined the Board in February 2016.  James Riley stepped down as Group Finance Director at the end of March 2016 and was succeeded by John Witt.  David Hsu joined the Board in May 2016.  In August 2016, Adam Keswick moved from Hong Kong to become chairman of Matheson & Co. in London and relinquished his position as Deputy Managing Director in favour of Y.K. Pang.  Adam remains on the Board.

We were saddened by the death of Lord Leach in June 2016.  He made a significant contribution to the Group over 33 years and his intellect and wise counsel will be greatly missed.

Outlook

After a steady result for the Jardine Matheson Group in 2016, the current year will see our businesses concentrating on improving their underlying performances and investing in key areas for future growth.

Sir Henry Keswick

Chairman

Managing Director's Review

Jardine Matheson is a diversified group of market-leading operations focused principally on two of the regions that are driving global growth, Greater China and Southeast Asia, although some of its businesses have a more global reach.  In 2016, 52% of underlying profit came from Greater China, compared with 43% from Southeast Asia.  The main contributors to underlying profit by activity were motor related interests at 28%, property at 25%, and retailing and restaurants at 23%.

To support their development, each business has access to the Group's financial resources, expertise, people and customers necessary to enable it to compete effectively in rapidly evolving business environments.  This includes the ability to take advantage of the developments in technology necessary to keep pace with consumer demands. 

The Group's operations produced creditable performances in 2016, enabling Jardine Matheson to achieve an underlying profit before tax of US$3,729 million, up 6%.  The underlying profit attributable to shareholders rose 2% to US$1,386 million, while underlying earnings per share were 2% higher at US$3.71.  The profit attributable to shareholders of US$2,503 million included a US$1,043 million share of Hongkong Land's increase in the valuation of investment properties and gains on property and business disposals of US$163 million.  Partially offsetting these was US$101 million in charges in respect of the impairment in goodwill within Jardine Pacific, which were taken through profit and loss account in line with accounting requirements.

The Group's profit generation, cash flows and retained earnings have supported continued investment enabling high levels of capital expenditure to be combined with low levels of debt.  The Group's capital investment, including expenditure on properties for sale, exceeded US$3.3 billion in 2016, in addition to which its associates and joint ventures had capital investment of US$2.3 billion.  Three of Astra's operations, Permata Bank, Astra Agro Lestari and Acset Indonusa, raised equity through rights issues during the year to enhance their balance sheets and fund growth.  The Group's consolidated net debt at the end of the year, excluding financial services companies, was US$2.1 billion, which compares to US$3.0 billion at the end of 2015, with gearing reducing from 6% to 4%.

Jardine Pacific

Jardine Pacific produced an underlying net profit of US$135 million in 2016, a reduction of 5% largely as a result of the sale of its shipping business in 2015.  Most ongoing businesses reported steady growth, although Gammon's contribution was affected by a difficult contract.  The profit attributable to shareholders was US$57 million after taking into account property valuations and goodwill impairments principally against the IT operations.  This compares with US$145 million in 2015.  

	Group Interest		Group Share of Underlying profit
	%		2016  US$m	2015 US$m
Analysis of Jardine Pacific's contribution:
Jardine Schindler	50		44	41
JEC	50-100		28	27
Gammon	50		18	29
Jardine Restaurants	100		28	19
Transport Services	42-50		17	32
JTH Group	100		9	6
Corporate and other interests			(9)	(12)
			135	142

Jardine Schindler continued its good performance as it generated stable profits and margins, and further growth in its maintenance portfolio was achieved.  JEC also did well to generate improved earnings. Gammon's contribution was lower following the underperformance of a contract in its civils division.  Its order book has remained steady at US$3.8 billion.

Jardine Restaurants produced good profit growth in Taiwan, in part deriving from tax benefits, but saw more difficult trading for its Pizza Hut operations in Hong Kong.  Jardine Pacific's continuing Transport Services businesses reported stable contributions, with a slight increase in cargo throughput seen at Hactl.  There was a better result from JTH Group despite continuing weak markets, however, following a review of the trading performance of its IT distribution business, a US$73 million goodwill impairment was recorded.

Jardine Motors

Jardine Motors produced a much improved underlying profit of US$110 million in 2016, 43% higher than the prior year.

Zung Fu in mainland China achieved higher sales of Mercedes-Benz passenger cars at enhanced margins and better performances from its after-sales operations.  However, it faced declining sales and margins in softer markets in Hong Kong and Macau.  Zung Fu is developing a new flagship property on Hong Kong Island, primarily financed by proceeds from the disposal of existing properties, that will combine most of its Mercedes-Benz sales, service and administration activities onto a single site.  In the United Kingdom, the dealerships achieved higher vehicle sales and stable margins, but a weaker sterling exchange rate led to a lower earnings contribution.

Zhongsheng, one of mainland China's leading motor dealership groups in which Jardine Strategic now holds a 15.5% interest, announced a significant improvement in profitability in 2016 as a result of increased sales and better margins.

Jardine Lloyd Thompson

JLT's total revenue for 2016 was US$1,698 million, an increase of 9% in its reporting currency.  While underlying trading profit was up 3% in its reporting currency at US$260 million, it was 9% lower at constant rates of exchange.  This reflects a weaker first-half performance in its UK Employee Benefits business and the development cost of its US Specialty business.  On conversion into US dollars and after adjusting for restructuring costs, JLT's contribution to the Group's underlying profit was 20% lower than the prior year.

JLT's Risk & Insurance businesses produced a 4% increase in revenues at constant rates of exchange.  Good performances were seen in its Specialty and Reinsurance businesses as well as its Asian and Latin American operations, with progress continuing to be made in its new US Specialty business.

The revenues of its Employee Benefits operations were down 1% at constant rates of exchange following the impact on the UK Employee Benefits business of structural changes in the industry.  The profits of the business started to recover, however, in the second half of the year.  The International Employee Benefits operations delivered 5% revenue growth at constant rates of exchange. 

Hongkong Land

Hongkong Land's underlying profit in 2016 was 6% lower at US$848 million.  Good results were seen in its commercial portfolio and its residential sector profits were marginally lower, but its overall earnings declined in the absence of a gain recorded in 2015 on a redeveloped property in Hong Kong.  The profit attributable to shareholders was US$3,346 million after accounting for net non-trading gains of US$2,498 million recorded on the revaluation of the group's investment properties.  This compares to US$2,012 million in 2015, which included net valuation gains of US$1,107 million.  Hongkong Land remains well-financed with net debt of US$2.0 billion at the year end and net gearing of 6%.

In commercial property, limited competitive supply in the Hong Kong office leasing market benefited the group's Central portfolio, with year-end vacancy of 2.2% and rental reversions remaining positive.  The retail portion of the portfolio was fully occupied and base rental reversions were largely positive, although the impact of turnover rent led to reduced rental income.  The group's Singapore office portfolio was almost fully let, but the average rent decreased slightly.  In mainland China, construction of the group's luxury retail and hotel complex in Beijing is on target, with the retail component opening later in 2017 and the Mandarin Oriental Hotel due to open in 2018.  In Jakarta, the fifth tower at Jakarta Land, the group's 50%-owned joint venture, is due to complete in 2018.

In Hongkong Land's residential developments, revenue recognized in mainland China during the year, including attributable interests in joint ventures, increased by 34%, but the profit contribution was flat due to the product mix and a weaker Chinese currency.  The group's attributable interest in contracted sales was 38% higher in 2016 at US$1,105 million.  The construction of the 50%-owned New Bamboo Grove in Chongqing began in mid-2016 and is progressing well.  Results from the Singapore residential business declined marginally due to lower provision write-backs on completed developments.  Of Hongkong Land's other residential interests, the developments in Indonesia and the Philippines are progressing well.

Dairy Farm

Dairy Farm produced sound profit growth despite soft consumer spending and pressure on pricing in most of its markets.  Sales by subsidiaries in 2016 were up 1% at US$11.2 billion. Total sales, including 100% of associates and joint ventures, were 14% higher at US$20.4 billion as Yonghui produced stronger growth and an additional three months' contribution. Dairy Farm's underlying profit was up 7% at US$460 million, with the increase being largely attributable to improved operating margins in its Food and Home Furnishings divisions and strong contributions from both Yonghui and Maxim's.  The group's operations continue to generate good net cash flows, although somewhat reduced from 2015 due to timing differences on working capital movements.  A further US$190 million was invested in Yonghui in August to maintain Dairy Farm's shareholding at 19.99%.

Further progress was made by Dairy Farm in pursuit of its strategic objectives in 2016 as it took measures to compete effectively in an evolving retail landscape and grow its market share.  Its e-commerce offerings were improved, with initiatives in its Home Furnishings, Food and Health and Beauty operations.  Range enhancements were introduced in all of its formats in areas such as fresh produce, ready-to-eat and corporate brands.  Dairy Farm is using its scale to provide an increasingly extensive international product range at more attractive prices, while its customers are benefiting from improved store networks and further investment in quality assurance. 

Dairy Farm's continuing operations, including associates and joint ventures, added a net 114 stores during the year after the rationalization of some underperforming stores.  At 31st December 2016, the group had 6,548 stores in operation in eleven countries and territories, including its interest in 487 Yonghui stores in mainland China. 

Mandarin Oriental

Mandarin Oriental faced softer demand in many of its key markets throughout 2016 resulting in its underlying profit reducing to US$57 million, compared with the US$90 million in the prior year.  Profit attributable to shareholders was US$55 million, compared to US$89 million in 2015.

The group's hotels in Hong Kong, London and Paris were particularly affected by reduced demand, while its London property was also impacted by an 18-month renovation programme which began in September.  The group saw a positive trading environment in Tokyo, a return to normal operations in Munich following a public area renovation, and a contribution from the newly acquired equity interest in Mandarin Oriental, Boston.  There were, however, weaker performances in Washington D.C. and Jakarta.

Mandarin Oriental completed the US$140 million acquisition of its Boston hotel in April 2016. In July, it announced 30 branded residences adjacent to Mandarin Oriental, Bali, both of which are due to open in mid-2018, and in February 2017 it announced a management contract for a new hotel and residences in Honolulu, Hawaii to open in 2020.  The group has eleven hotels under development, which are expected to open in the next five years, with the next hotel opening in Doha expected later this year.  Mandarin Oriental currently operates  29 hotels and eight residences in 19 countries and territories.

Jardine Cycle & Carriage

Jardine Cycle & Carriage's underlying profit was 7% higher at US$679 million.  Profit attributable to shareholders was US$702 million after accounting for a net non-trading profit of US$23 million, compared with US$691 million in 2015 after a net non-trading gain of US$59 million.  Astra's contribution of US$500 million was up 6%.  The group's Direct Motor Interests contributed US$167 million, up 18%, while the contribution from its Other Interests was 11% higher at US$33 million.

Within the Direct Motor Interests, the 25%-owned Truong Hai Auto Corporation in Vietnam had a good year with its contribution up 10% at US$94 million following a good performance from its automotive operations and initial profits from a new real estate business.  Earnings from the wholly-owned Singapore motor operations rose 26% to US$49 million following an increase in the number of certificates of entitlement.  In Malaysia, the results of 59%-owned Cycle & Carriage Bintang declined despite increased unit sales as changes in the sales mix led to lower margins.  In Indonesia, 44%-owned Tunas Ridean increased its contribution by 94% to US$18 million with higher income from motor car sales and financing.

Of the group's Other Interests,  the first full-year's contribution from 25%-held Siam City Cement Public Company Limited ('SCCC') in Thailand of US$22 million was modestly higher as the effect of reduced domestic cement prices was partly offset by contributions from new acquisitions.  SCCC is investing some US$1 billion to expand its business with acquisitions in Vietnam, Bangladesh and Sri Lanka, which it will finance in part by a US$480 million rights issue.  Jardine Cycle & Carriage's 23%-owned Refrigeration Electrical Engineering Corporation in Vietnam, contributed US$11 million, an increase of 25% with progress being made in its property development activities. 

Astra

Astra's underlying profit for 2016 under Indonesian accounting standards was up 4% at  Rp14.6 trillion, equivalent to US$1,096 million.  Its net profit was up 5% at Rp15.2 trillion, some US$1,137 million.  Strong working capital inflows were maintained with net cash, excluding its financial services subsidiaries, of Rp6.2 trillion or US$461 million at 31st December 2016, compared to net cash of Rp1.0 trillion or US$75 million at the end of 2015.

Net income from Astra's automotive businesses in Indonesia rose 23% to US$688 million, largely due to successful new model launches.  Astra's car sales were up 16% at 591,000 units, outperforming the wholesale market increase of 5%, resulting in its market share rising from 50% to 56%.  Astra Honda Motor's domestic motorcycle sales were 2% lower at 4.4 million units, while the wholesale market declined 8%, increasing its market share from 69% to 74%.  Net income from Astra Otoparts rose 31% to US$31 million.

Net income in financial services was 78% lower at US$59 million, mainly due to a loss in Permata Bank following a significant increase in loan-loss provisions in its commercial loan book, excluding this loss the net income would have risen 7% to US$282 million.  To strengthen its capital base, Permata Bank undertook a US$420 million rights issue in June 2016 and plans for a further US$220 million rights issue in the first half of 2017, in respect of which US$110 million has already been advanced by its two major shareholders, Astra and Standard Chartered Bank.  Astra's consumer financing rose 21% in 2016 to US$5.5 billion, while its heavy equipment financing rose 20% to US$352 million.  Modest improvement was seen in Astra's general insurance company, and by the end of the year its life insurance joint venture, Astra Aviva Life, had reached 228,000 individual life customers and 596,000 participants for its corporate employee benefits programmes.

United Tractors' net income of US$375 million was up 30% over 2015, when an impairment charge was incurred, excluding which the net income in 2016 would have been down 22%.  Mining contracting revenue was lower due to the relatively weak coal prices for much of the year.  Earnings were also impacted by foreign exchange translation losses.  Komatsu heavy equipment sales rose 3%, but parts and service revenue declined.  Pamapersada Nusantara's mining contracting operations saw coal production little changed, while overburden removal was 8% lower.  Coal sales at United Tractors' mining subsidiaries were 48% higher at 6.8 million tonnes.  General contractor, Acset Indonusa, reported net income up 63% at US$5 million, and in June 2016 raised US$45 million in a rights issue to support its continued growth.

Astra Agro Lestari's net income increased from US$46 million to US$150 million.  Its revenue improved as higher crude palm oil prices offset reduced production due to the impact of poor weather, while the stronger rupiah at the year end benefited the translation of its US dollar monetary liabilities.  It completed a US$300 million rights issue in June 2016.

Net income from Astra's infrastructure and logistics activities increased by 35% to US$20 million.  Progress continues in the expansion of the group's toll road interests, which including greenfield developments now extend to 343 kilometres.  PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, saw a modest rise in sales volumes. Astra's contract car hire business produced a better result, while its information technology interests saw a modest decline in net income.  

Astra's new property division produced net income of US$8 million, down from US$16 million in 2015 primarily due to lower revaluation gains.  Construction is ongoing at the 93%-sold luxury residential development Anandamaya Residences, a 60%-owned joint venture with Hongkong Land in Jakarta's Central Business District, and at Menara Astra, the adjacent Grade A office tower development.  Both are on schedule to complete in 2018.

Ben Keswick

Managing Director

Jardine Matheson Holdings Limited Consolidated Profit and Loss Account for the year ended 31st December 2016
	2016											2015
Underlying business performance US$m			Non- trading items US$m				Total US$m					Underlying business performance US$m restated					Non- trading items US$m restated				Total US$m restated
Revenue (note 2)		37,051				-					37,051					37,007				-					37,007
Net operating costs (note 3)		(33,905)				93					(33,812)					(34,203)				(59)					(34,262)
Change in fair value of investment properties		-				2,573					2,573					-				1,043					1,043
Operating profit		3,146				2,666					5,812					2,804				984					3,788
Net financing charges
- financing charges		(297)				-					(297)					(269)				-					(269)
- financing income		146				-					146					134				-					134
		(151)				-					(151)					(135)				-					(135)
Share of results of associates and joint ventures (note 4)
- before change in fair value of investment properties		734				7					741					838				37					875
- change in fair value of investment properties		-				(56)					(56)					-				72					72
		734				(49)					685					838				109					947
Profit before tax		3,729				2,617					6,346					3,507				1,093					4,600
Tax (note 5)		(654)				(5)					(659)					(624)				13					(611)
Profit after tax		3,075				2,612					5,687					2,883				1,106					3,989
Attributable to:
Shareholders of the Company (notes 6 & 7)		1,386				1,117					2,503					1,360				439					1,799
Non-controlling interests		1,689				1,495					3,184					1,523				667					2,190
		3,075				2,612					5,687					2,883				1,106					3,989
		US$									US$					US$									US$
Earnings per share (note 6)
- basic		3.71									6.69					3.64									4.82
- diluted		3.70									6.68					3.64									4.81

Jardine Matheson Holdings Limited Consolidated Statement of Comprehensive Income for the year ended 31st December 2016
			2016 US$m					2015 US$m restated
Profit for the year			5,687						3,989
Other comprehensive income/(expense)
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans			23						(79)
Net revaluation surplus before transfer to investment properties
-  intangible assets			105						-
-  tangible assets			2						-
Tax on items that will not be reclassified			(10)						13
			120						(66)
Share of other comprehensive expense of associates and joint ventures			(25)						(2)
			95						(68)
Items that may be reclassified subsequently to profit or loss:
Net exchange translation differences
- net loss arising during the year			(139)						(1,112)
- transfer to profit and loss			(3)						3
			(142)						(1,109)
Revaluation of other investments
- net gain/(loss) arising during the year			113						(1)
- transfer to profit and loss			-						(132)
			113						(133)
Impairment of other investments transfer to profit and loss			-						188
Cash flow hedges
- net (loss)/gain arising during the year			(173)						109
- transfer to profit and loss			186						(101)
			13						8
Tax relating to items that may be reclassified			1						(5)
Share of other comprehensive expense of associates and joint ventures			(213)						(654)
			(228)						(1,705)
Other comprehensive expense for the year, net of tax			(133)						(1,773)
Total comprehensive income for the year			5,554						2,216
Attributable to:
Shareholders of the Company			2,310						1,121
Non-controlling interests			3,244						1,095
			5,554						2,216

Jardine Matheson Holdings Limited Consolidated Balance Sheet at 31st December 2016
		At 31st December						At 1st January
		2016 US$m					2015 US$m restated				2015 US$m restated
Assets
Intangible assets		2,825					2,753				2,679
Tangible assets		6,239					6,086				6,690
Investment properties		28,609					25,630				24,309
Bearer plants		497					485				483
Associates and joint ventures		10,595					10,190				8,881
Other investments		1,369					1,105				1,354
Non-current debtors		2,936					3,263				3,540
Deferred tax assets		375					315				305
Pension assets		5					5				23
Non-current assets		53,450					49,832				48,264
Properties for sale		2,315					2,763				2,953
Stocks and work in progress		3,281					3,331				3,280
Current debtors		6,697					5,661				6,068
Current investments		65					32				18
Current tax assets		169					180				133
Bank balances and other liquid funds
- non-financial services companies		5,314					4,535				4,933
- financial services companies		229					247				382
		5,543					4,782				5,315
		18,070					16,749				17,767
Non-current assets classified as held for sale		3					-				1
Current assets		18,073					16,749				17,768
Total assets		71,523					66,581				66,032

Equity
Share capital		178					175				173
Share premium and capital reserves		175					158				138
Revenue and other reserves		25,547					23,149				21,990
Own shares held		(4,100)					(3,596)				(3,105)
Shareholders' funds		21,800					19,886				19,196
Non-controlling interests		27,937					25,614				25,289
Total equity		49,737					45,500				44,485
Liabilities
Long-term borrowings
- non-financial services companies		5,343					5,199				5,240
- financial services companies		1,518					1,796				2,176
		6,861					6,995				7,416
Deferred tax liabilities		500					493				590
Pension liabilities		419					416				350
Non-current creditors		440					430				364
Non-current provisions		151					145				138
Non-current liabilities		8,371					8,479				8,858
Current creditors		8,714					8,261				8,244
Current borrowings
- non-financial services companies		2,058					2,308				2,176
- financial services companies		2,265					1,683				1,892
		4,323					3,991				4,068
Current tax liabilities		266					266				300
Current provisions		112					84				77
Current liabilities		13,415					12,602				12,689
Total liabilities		21,786					21,081				21,547
Total equity and liabilities		71,523					66,581				66,032

Jardine Matheson Holdings Limited Consolidated Statement of Changes in Equity for the year ended 31st December 2016
	Share capital US$m		Share premium US$m		Capital reserves US$m		Revenue reserves US$m	Asset revaluation reserves US$m			Hedging reserves US$m		Exchange reserves US$m		Own shares held US$m	Attributable to shareholders of the Company US$m		Attributable to non-controlling interests US$m			Total equity US$m
2016
At 1st January
- as previously reported	175		21		137		24,674		176		(14)		(1,625)		(3,596)		19,948		25,833		45,781
- change in accounting policy for bearer plants	-		-		-		(96)		-		-		34		-		(62)		(219)		(281)
- as restated	175		21		137		24,578		176		(14)		(1,591)		(3,596)		19,886		25,614		45,500
Total comprehensive income	-		-		-		2,558		34		(18)		(264)		-		2,310		3,244		5,554
Dividends paid by the Company (note 8)	-		-		-		(541)		-		-		-		-		(541)		97		(444)
Dividends paid to non-controlling interests	-		-		-		-		-		-		-		-		-		(778)		(778)
Unclaimed dividends forfeited	-		-		-		1		-		-		-		-		1		-		1
Issue of shares	-		1		-		-		-		-		-		-		1		-		1
Employee share option schemes	-		-		22		-		-		-		-		-		22		1		23
Scrip issued in lieu of dividends	3		(3)		-		700		-		-		-		-		700		-		700
Increase in own shares held	-		-		-		-		-		-		-		(504)		(504)		(73)		(577)
Capital contribution from non-controlling interests	-		-		-		-		-		-		-		-		-		83		83
Change in interests in subsidiaries	-		-		-		(74)		-		-		1		-		(73)		(251)		(324)
Change in interests in associates and joint ventures	-		-		-		(2)		-		-		-		-		(2)		-		(2)
Transfer	-		1		(4)		3		-		-		-		-		-		-		-
At 31st December	178		20		155		27,223		210		(32)		(1,854)		(4,100)		21,800		27,937		49,737
2015
At 1st January
- as previously reported	173		20		118		22,824		176		(10)		(929)		(3,105)		19,267		25,538		44,805
- change in accounting policy for bearer plants	-		-		-		(97)		-		-		26		-		(71)		(249)		(320)
- as restated	173		20		118		22,727		176		(10)		(903)		(3,105)		19,196		25,289		44,485
Total comprehensive income	-		-		-		1,813		-		(4)		(688)		-		1,121		1,095		2,216
Dividends paid by the Company (note 8)	-		-		-		(540)		-		-		-		-		(540)		98		(442)
Dividends paid to non-controlling interests	-		-		-		-		-		-		-		-		-		(897)		(897)
Unclaimed dividends forfeited	-		-		-		1		-		-		-		-		1		-		1
Issue of shares	-		2		-		-		-		-		-		-		2		-		2
Employee share option schemes	-		-		22		-		-		-		-		-		22		2		24
Scrip issued in lieu of dividends	2		(2)		-		653		-		-		-		-		653		-		653
Increase in own shares held	-		-		-		-		-		-		-		(491)		(491)		(72)		(563)
Subsidiaries acquired	-		-		-		-		-		-		-		-		-		28		28
Subsidiaries disposed of	-		-		-		-		-		-		-		-		-		(5)		(5)
Capital contribution from non-controlling interests	-		-		-		-		-		-		-		-		-		262		262
Change in interests in subsidiaries	-		-		-		(51)		-		-		-		-		(51)		(190)		(241)
Change in interests in associates and joint ventures	-		-		-		(27)		-		-		-		-		(27)		4		(23)
Transfer	-		1		(3)		2		-		-		-		-		-		-		-
At 31st December	175		21		137		24,578		176		(14)		(1,591)		(3,596)		19,886		25,614		45,500
Total comprehensive income included in revenue reserves comprises profit attributable to shareholders of the Company of US$2,503 million (2015: US$1,799 million) and net fair value gain on other investments (net of impairment and transfer to profit and loss) of US$94 million (2015: US$64 million).  Cumulative net fair value gain on other investments amounted to US$347 million (2015: US$253 million).

Jardine Matheson Holdings Limited Consolidated Cash Flow Statement for the year ended 31st December 2016
		2016 US$m				2015 US$m restated
Operating activities
Operating profit		5,812				3,788
Change in fair value of investment properties		(2,573)				(1,043)
Depreciation and amortization		945				963
Other non-cash items		120				620
(Increase)/decrease in working capital		(94)				76
Interest received		136				136
Interest and other financing charges paid		(289)				(267)
Tax paid		(704)				(818)
		3,353				3,455
Dividends from associates and joint ventures		597				634
Cash flows from operating activities		3,950				4,089
Investing activities
Purchase of subsidiaries (note 9(a))		(60)				(215)
Purchase of associates and joint ventures (note 9(b))		(652)				(1,762)
Purchase of other investments (note 9(c))		(294)				(124)
Purchase of intangible assets		(142)				(147)
Purchase of tangible assets		(996)				(1,093)
Additions to investment properties		(313)				(233)
Additions to bearer plants		(56)				(72)
Advance to associates and joint ventures (note 9(d))		(81)				(284)
Advance and repayment from associates and joint ventures (note 9(e))		175				386
Sale of subsidiaries		16				4
Sale of associates and joint ventures		5				8
Sale of other investments (note 9(f))		122				269
Sale of intangible assets		8				2
Sale of tangible assets		204				60
Sale of investment properties		1				1
Cash flows from investing activities		(2,063)				(3,200)
Financing activities
Issue of shares		1				2
Capital contribution from non-controlling interests		77				262
Change in interests in subsidiaries (note 9(g))		(339)				(241)
Drawdown of borrowings		23,629				20,353
Repayment of borrowings		(23,314)				(20,337)
Dividends paid by the Company		(322)				(352)
Dividends paid to non-controlling interests		(783)				(906)
Cash flows from financing activities		(1,051)				(1,219)
Net increase/(decrease) in cash and cash equivalents		836				(330)
Cash and cash equivalents at 1st January		4,773				5,288
Effect of exchange rate changes		(78)				(185)
Cash and cash equivalents at 31st December		5,531				4,773

Jardine Matheson Holdings Limited Analysis of Profit Contribution for the year ended 31st December 2016
		2016 US$m				2015 US$m restated
Reportable segments
Jardine Pacific		135				142
Jardine Motors		110				77
Jardine Lloyd Thompson		56				70
Hongkong Land		353				374
Dairy Farm		297				274
Mandarin Oriental		36				55
Jardine Cycle & Carriage		125				105
Astra		312				290
		1,424				1,387
Corporate and other interests		(38)				(27)
Underlying profit attributable to shareholders*		1,386				1,360
Increase in fair value of investment properties		1,061				474
Other non-trading items		56				(35)
Profit attributable to shareholders		2,503				1,799
Analysis of Jardine Pacific's contribution
Jardine Schindler		44				41
JEC		28				27
Gammon		18				29
Jardine Restaurants		28				19
Transport Services		17				32
JTH Group		9				6
Corporate and other interests		(9)				(12)
		135				142
Analysis of Jardine Motors' contribution
Hong Kong and mainland China		82				40
United Kingdom		30				38
Corporate		(2)				(1)
		110				77
*  Underlying profit attributable to shareholders is the measure of profit adopted by the Group in accordance with IFRS 8 'Operating Segments'.

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 2016 which have been prepared in conformity with International Financial Reporting Standards ('IFRS'), including International Accounting Standards ('IAS') and Interpretations adopted by the International Accounting Standards Board ('IASB').

The following amendments which are effective in the current accounting year and relevant to the Group's operations are adopted in 2016:

	Amendments to IFRS 11	Accounting for Acquisitions of Interests in Joint Operations
	Amendments to IAS 1	Disclosure Initiative: Presentation of Financial Statements
	Amendments to IAS 16 and IAS 38	Clarification of Acceptable Methods of    Depreciation and Amortization
	Amendments to IAS 16 and IAS 41	Agriculture: Bearer Plants
	Annual Improvements to IFRSs	2012 - 2014 Cycle

The adoption of the above amendments does not have a significant effect on the Group's accounting policies and disclosures except for the amendments to IAS 16 and IAS 41, which has resulted in a change in accounting policy for bearer plants.  Previously, plantations were measured at each balance sheet date at their fair values.  In accordance with the amendments, bearer plants in the plantations are stated at cost less any accumulated depreciation and impairment.  The accounting for produce growing on the bearer plants will remain unchanged and is shown at fair value.  The amendments have been applied retrospectively and the comparative financial statements have been restated.

The effects of adopting amendments to IAS 16 and IAS 41 were as follows:

(a)  On the consolidated profit and loss for the year ended 31st December 2015

Increase/(decrease)

in profit

US$m

Net operating costs

9

Tax

(2)

Profit after tax

7

Attributable to:

Shareholders of the Company

2

Non-controlling interests

5

There were no changes in basic and diluted earnings per share.

(b)  On the consolidated statement of comprehensive income for the year ended 31st December 2015

		Increase in total
			comprehensive income
									US$m
	Profit after tax								7
	Net exchange translation differences								32
	Total comprehensive income for the year								39
	Attributable to:
	Shareholders of the Company								10
	Non-controlling interests								29
									39

(c)  On the consolidated balance sheet

								Increase/(decrease)
				31st December						1st January
								2015 US$m				2015 US$m
	Plantations							(859)				(908)
	Bearer plants							485				483
	Total assets							(374)				(425)
	Revenue and other reserves							(62)				(71)
	Non-controlling interests							(219)				(249)
	Deferred tax liabilities							(93)				(105)
	Total equity and liabilities							(374)				(425)

2.    Revenue

			Gross revenue								Revenue
			2016 US$m				2015 US$m				2016 US$m				2015 US$m
	By business:
	Jardine Pacific		6,285				6,173				2,356				2,463
	Jardine Motors		5,197				5,207				5,197				5,207
	Jardine Lloyd Thompson		1,698				1,763				-				-
	Hongkong Land		3,201				3,114				1,994				1,932
	Dairy Farm		20,424				17,907				11,201				11,137
	Mandarin Oriental		965				959				597				607
	Jardine Cycle & Carriage		6,785				5,443				2,154				2,016
	Astra		28,156				25,252				13,610				13,702
	Intersegment transactions		(274)				(547)				(58)				(57)
			72,437				65,271				37,051				37,007

Gross revenue comprises revenue together with 100% of revenue from associates and  joint ventures.

3.    Net Operating Costs

			2016 US$m				2015 US$m
	Cost of sales		(28,232)				(28,394)
	Other operating income		659				763
	Selling and distribution costs		(4,157)				(4,190)
	Administration expenses		(1,873)				(1,751)
	Other operating expenses		(209)				(690)
			(33,812)				(34,262)
	Net operating costs included the following gains/(losses) from non-trading items:
	Change in fair value of agricultural produce		22				-
	Asset impairment		(82)				(176)
	Sale and closure of businesses		5				(8)
	Sale of other investments		-				126
	Sale of property interests		151				1
	Restructuring of businesses		3				-
	Loss on dilution of interest in an associate		(4)				(2)
	Acquisition-related costs		(2)				(2)
	Fair value loss on convertible component of Zhongsheng bonds		-				(1)
	Value added tax recovery in Jardine Motors		-				3
			93				(59)

4.    Share of Results of Associates and Joint Ventures

			2016 US$m				2015 US$m
	By business:
	Jardine Pacific		71				103
	Jardine Lloyd Thompson		46				66
	Hongkong Land		59				210
	Dairy Farm		119				85
	Mandarin Oriental		11				11
	Jardine Cycle & Carriage		148				168
	Astra		232				302
	Corporate and other interests		(1)				2
			685				947
	Share of results of associates and joint ventures included the following gains/(losses) from non-trading items:
	Change in fair value of investment properties		(56)				72
	Asset impairment		(18)				42
	Sale and closure of businesses		3				11
	Sale of property interests		32				-
	Litigation costs		(10)				-
	Restructuring of businesses		-				(16)
			(49)				109

Results are shown after tax and non-controlling interests in the associates and joint ventures.

5.    Tax

			2016 US$m				2015 US$m
	Tax charged to profit and loss is analyzed as follows:
	Current tax		(718)				(733)
	Deferred tax		59				122
			(659)				(611)
	Greater China		(259)				(219)
	Southeast Asia		(389)				(381)
	United Kingdom		(6)				(8)
	Rest of the world		(5)				(3)
			(659)				(611)
	Tax relating to components of other comprehensive income is analyzed as follows:
	Remeasurements of defined benefit plans		(10)				13
	Cash flow hedges		1				(5)
			(9)				8

Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates.

Share of tax charge of associates and joint ventures of US$221 million and credit of US$13 million (2015: charge of US$257 million and US$4 million) are included in share of results of associates and joint ventures and share of other comprehensive income of associates and joint ventures, respectively.

6.    Earnings per Share

Basic earnings per share are calculated on profit attributable to shareholders of US$2,503 million (2015: US$1,799 million) and on the weighted average number of 374 million (2015: 373 million) shares in issue during the year.

Diluted earnings per share are calculated on profit attributable to shareholders of US$2,502 million (2015: US$1,798 million), which is after adjusting for the effects of the conversion of dilutive potential ordinary shares of subsidiaries, associates or joint ventures, and on the weighted average number of 375 million (2015: 374 million) shares in issue during the year.

The weighted average number of shares is arrived at as follows:

			Ordinary shares in millions
			2016				2015
	Weighted average number of shares in issue		708				696
	Company's share of shares held by subsidiaries		(334)				(323)
	Weighted average number of shares for basic earnings  per share calculation		374				373
	Adjustment for shares deemed to be issued for no consideration under the Senior Executive Share Incentive Schemes		1				1
	Weighted average number of shares for diluted earnings per share calculation		375				374

Additional basic and diluted earnings per share are also calculated based on underlying profit attributable to shareholders.  A reconciliation of earnings is set out below:

						2016									2015
			US$m			Basic earnings per share US$			Diluted earnings per share US$			US$m			Basic earnings per share US$			Diluted earnings per share US$
	Profit attributable to shareholders		2,503			6.69			6.68			1,799			4.82			4.81
	Non-trading items (note 7)		(1,117)									(439)
	Underlying profit attributable to shareholders		1,386			3.71			3.70			1,360			3.64			3.64

7.    Non-trading items

Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance.  Items classified as non-trading items include fair value gains or losses on revaluation of investment properties; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets and other investments; provisions for the closure of businesses; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.

			2016 US$m				2015 US$m
	By business:
	Jardine Pacific		(78)				3
	Jardine Motors		143				1
	Jardine Lloyd Thompson		(10)				(4)
	Hongkong Land		1,043				459
	Dairy Farm		6				(2)
	Mandarin Oriental		(1)				(1)
	Jardine Cycle & Carriage		(3)				25
	Astra		17				11
	Corporate and other interests		-				(53)
			1,117				439
	An analysis of non-trading items after interest, tax and non-controlling interests is set out below:
	Change in fair value of investment properties
	- Hongkong Land		1,043				454
	- other		18				20
			1,061				474
	Change in fair value of agricultural produce		4				-
	Asset impairment		(101)				(126)
	Sale and closure of businesses		5				4
	Sale of other investments		-				104
	Sale of property interests		158				-
	Restructuring of businesses		3				(16)
	Loss on dilution of interest in an associate		(3)				(1)
	Acquisition-related costs		(1)				(2)
	Litigation costs		(9)				-
	Fair value loss on convertible component of Zhongsheng bonds		-				(1)
	Value added tax recovery in Jardine Motors		-				3
			1,117				439

8.    Dividends

			2016 US$m				2015 US$m
	Final dividend in respect of 2015 of US¢107.00 (2014: US¢107.00) per share		752				739
	Interim dividend in respect of 2016 of US¢38.00 (2015: US¢38.00) per share		270				266
			1,022				1,005
	Company's share of dividends paid on the shares held by subsidiaries		(481)				(465)
			541				540

A final dividend in respect of 2016 of US¢112.0 (2015: US¢107.00) per share amounting to a total of US$800 million (2015: US$752 million) is proposed by the Board.  The dividend proposed will not be accounted for until it has been approved at the 2017 Annual General Meeting.  The net amount after deducting the Company's share of the dividends payable on the shares held by subsidiaries of US$382 million (2015: US$352 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2017.

9.    Notes to Consolidated Cash Flow Statement

       (a)   Purchase of subsidiaries

				2016 Fair value US$m				2015 Fair value US$m
		Intangible assets		4				10
		Tangible assets		27				35
		Bearer plants		9				-
		Non-current debtors		-				2
		Current assets		11				116
		Deferred tax liabilities		-				(4)
		Current liabilities		(17)				(91)
		Long-term borrowings		-				(3)
		Fair value of identifiable net assets acquired		34				65
		Adjustment for non-controlling interests		-				(28)
		Goodwill		14				223
		Total consideration		48				260
		Deposit paid		12				-
		Adjustment for contingent consideration		(1)				-
		Payment for contingent consideration		1				1
		Adjustment for deferred consideration		-				(26)
		Cash and cash equivalents of subsidiaries acquired		-				(20)
		Net cash outflow		60				215

For the subsidiaries acquired during 2016, the fair values of the identifiable assets and liabilities at the acquisition dates are provisional and will be finalized within one year after the acquisition dates.

The fair values of the identifiable assets and liabilities at the acquisition dates of certain subsidiaries acquired during 2015 as included in the comparative figures were provisional.  The fair values were finalized in 2016.  As the difference between the provisional and the finalized fair values were not material, the comparative figures have not been adjusted.

Net cash outflow for purchase of subsidiaries in 2016 included US$46 million for Jardine Motors' acquisition of various motor dealership businesses in the United Kingdom during the second quarter of 2016, and US$12 million deposit paid for Astra's acquisition of an 80% interest in PT Suprabari Mapanindo Mineral, a coal mining company, to be completed in 2017.

Goodwill arising from the acquisition of motor dealership businesses was attributable to the expected synergies with its existing retail network.  None of the goodwill is expected to be deductible for tax purposes.

Revenue since acquisition in respect of subsidiaries acquired during the year amounted to US$116 million with insignificant contribution to profit after tax.  Had the acquisitions occurred on 1st January 2016, consolidated revenue for the year ended 31st December 2016 would have been US$37,138 million.  There was no impact on the consolidated profit after tax for the year ended 31st December 2016.

Net cash outflow in 2015 included US$147 million for Dairy Farm's acquisition of a 100% interest in San Miu Supermarket Limited ('San Miu'), which operates a supermarket chain in Macau, in March 2015, and US$57 million for Astra's acquisition of a 50.1% interest in PT Acset Indonusa, a construction company in Indonesia, in January 2015.

The goodwill arising from the acquisition of San Miu amounted to US$182 million and was attributable to its leading market position and retail network in Macau.  The goodwill arising from the acquisition of PT Acset Indonusa of US$33 million was attributable to the expected synergies from combining its operations with Astra's existing businesses.  None of the goodwill is expected to be deductible for tax purposes.

(b)   Purchase of associates and joint ventures in 2016 included US$190 million for Dairy Farm's further investment in Yonghui, US$240 million for Astra's subscription to rights issue and capital advance to PT Bank Permata, US$70 million for Hongkong Land's investment in mainland China, US$74 million for Astra's investment in Indonesia, and US$57 million for Hongkong Land's and Astra's 50% joint investment in an Indonesian residential project.

Purchase in 2015 included US$100 million for Hongkong Land's investment in mainland China, US$912 million for Dairy Farm's acquisition of a 19.99% interest in Yonghui, US$615 million for Jardine Cycle & Carriage's acquisition of a 24.9% interest in Siam City Cement Public Company Limited, a cement manufacturer in Thailand, and US$65 million for Astra's acquisition of 25% interest in PT Trans Marga Jateng, a toll road operator in Indonesia.

       (c)   Purchase of other investments in 2016 mainly included US$208 million for Astra's acquisition of securities and US$84 million for Jardine Strategic's acquisition of an additional 4% interest in Zhongsheng.

Purchase in 2015 mainly included acquisition of securities by Astra.

       (d)   Advance to associates and joint ventures in 2016 mainly included Hongkong Land's advance to its property joint ventures.

Advance in 2015 comprised US$215 million for Hongkong Land's advance to its property joint ventures and US$69 million for Mandarin Oriental's loan to its hotel joint ventures.

(e)   Advance and repayment from associates and joint ventures in 2016 and 2015 mainly included advance and repayment from Hongkong Land's property joint ventures.

(f)   Sale of other investments in 2016 comprised Astra's sale of securities.

Sale in 2015 mainly included US$102 million for Astra's sale of securities and US$166 million for Jardine Strategic's sale of ACLEDA Bank.

       (g)   Change in interests in subsidiaries

				2016 US$m		2015 US$m
		Increase in attributable interests
		- Jardine Strategic		(235)		(215)
		- Mandarin Oriental		(67)		-
		- Jardine Cycle & Carriage		(23)		(41)
		- other		(37)		(19)
		Decrease in attributable interests		23		34
				(339)		(241)

Increase in attributable interests in other subsidiaries in 2016 included US$35 million for Hongkong Land's acquisition of an additional 5% interest in Hongkong Land Macau Property Company Limited, increasing its controlling interest to 100%.

Increase in 2015 included US$18 million for Dairy Farm's acquisition of an additional 2.86% interest in PT Hero Supermarket.

Decrease in attributable interests in other subsidiaries in 2016 comprised US$15 million for Hongkong Land's sale of a 6% interest in Wangfu Central Real Estate Development Company Limited, reducing its controlling interest to 84%, and US$8 million for Astra's sale of a 20% interest in PT Balai Lelang Serasi, reducing its controlling interest to 70%.

Decrease in 2015 comprised Dairy Farm's sale of a 15% economic interest in GCH Retail (Malaysia) Sdn Bhd, reducing its controlling interest to 85%.

10.  Capital Commitments and Contingent Liabilities

Total capital commitments at 31st December 2016 amounted to US$2,118 million (2015: US$2,361 million).

At 31st December 2015, Dairy Farm had an investment commitment of RMB1.3 billion (approximately US$199 million) to further invest in Yonghui.  The transaction was completed in August 2016 at a consideration of US$190 million with Dairy Farm's interest in Yonghui remains at 19.99%.

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.

11.  Related Party Transactions

In the normal course of business the Group undertakes a variety of transactions with certain of its associates and joint ventures.

The most significant of such transactions relate to the purchases of motor vehicles and spare parts from the Group's associates and joint ventures in Indonesia including PT Toyota-Astra Motor, PT Astra Honda Motor and PT Astra Daihatsu Motor.  Total cost of motor vehicles and spare parts purchased in 2016 amounted to US$5,325 million (2015: US$5,471 million).  The Group also sells motor vehicles and spare parts to its associates and joint ventures in Indonesia including PT Astra Honda Motor, PT Astra Daihatsu Motor and PT Tunas Ridean.  Total revenue from sale of motor vehicles and spare parts in 2016 amounted to US$601 million (2015: US$841 million).

PT Bank  Permata  provides  banking  services  to the Group.  The Group's deposits  with PT Bank Permata at 31st December 2016 amounted to US$328 million (2015: US$417 million).

There were no other related party transactions that might be considered to have a material effect on the financial position or performance of the Group that were entered into or changed during the year.

Amounts of outstanding balances with associates and joint ventures are included in debtors and creditors, as appropriate.

Jardine Matheson Holdings Limited

Principal Risks and Uncertainties

The Board has overall responsibility for risk management and internal control.  The process by which the Group identifies and manages risk will be set out in more detail in the Corporate Governance section of the Company's 2016 Annual Report (the 'Report').  The following are the principal risks and uncertainties facing the Company as required to be disclosed pursuant to the Disclosure Guidance and Transparency Rules issued by the Financial Conduct Authority of the United Kingdom and are in addition to the matters referred to in the Chairman's Statement and Managing Director's Review.

Economic Risk

Most of the Group's businesses are exposed to the risk of negative developments in global and regional economies and financial markets, either directly or through the impact on the Group's joint venture partners, franchisors, bankers, suppliers or customers. These developments can result in recession, inflation, deflation, currency fluctuations, restrictions in the availability of credit, business failures, or increases in financing costs, oil prices and in the cost of raw materials.  Such developments might increase operating costs, reduce revenues, lower asset values or result in the Group's businesses being unable to meet in full their strategic objectives.

Commercial Risk and Financial Risk

Risks are an integral part of normal commercial practices, and where practicable steps are taken to mitigate such risks.  These risks are further pronounced when operating in volatile markets.

A number of the Group's businesses make significant investment decisions in respect of developments or projects that take time to come to fruition and achieve the desired returns and are, therefore, subject to market risks.

The Group's businesses operate in areas that are highly competitive and evolving rapidly, and failure to compete effectively in terms of price, tender terms, product specification, application of new technologies or levels of service can have an adverse effect on earnings or market share.  Significant pressure from such competition may also lead to reduced margins.  The quality and safety of the products and services provided by the Group's businesses are important and there is an associated risk if they are below standard, while the potential impact on a number of our businesses of the disruption to IT systems or infrastructure, whether by cyber-crime or other reasons, may be significant.

The steps taken by the Group to manage its exposure to financial risk will be set out in the Financial Review and in a note to the Financial Statements in the Report.

Concessions, Franchises and Key Contracts

A number of the Group's businesses and projects are reliant on concessions, franchises, management or other key contracts.  Cancellation, expiry or termination, or the renegotiation of any such concession, franchise, management or other key contracts, could have an adverse effect on the financial condition and results of operations of certain subsidiaries, associates and joint ventures of the Group.

Regulatory and Political Risk

The Group's businesses are subject to a number of regulatory environments in the territories in which they operate.  Changes in the regulatory approach to such matters as foreign ownership of assets and businesses, exchange controls, planning controls, emission regulations, tax rules and employment legislation have the potential to impact the operations and profitability of the Group's businesses.  Changes in the political environment in such territories can also affect the Group's businesses.

Terrorism, Pandemic and Natural Disasters

A number of the Group's operations are vulnerable to the effects of terrorism, either directly through the impact of an act of terrorism or indirectly through the impact of generally reduced economic activity in response to the threat of or an actual act of terrorism.

All Group businesses would be impacted by a global or regional pandemic which could be expected to seriously affect economic activity and the ability of our businesses to operate smoothly.  In addition, many of the territories in which the Group operates can experience from time to time natural disasters such as earthquakes and typhoons.

Responsibility Statement

The Directors of the Company confirm to the best of their knowledge that:

(a)  the consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, including International Accounting Standards and Interpretations adopted by the International Accounting Standards Board; and

(b)  the sections of the Company's 2016 Annual Report, including the Chairman's Statement, Managing Director's Review and Principal Risks and Uncertainties, which constitute the management report include a fair review of all information required to be disclosed by the Disclosure Guidance and Transparency Rules 4.1.8 to 4.1.11 issued by the Financial Conduct Authority of the United Kingdom.

For and on behalf of the Board

Ben Keswick

John Witt

Directors

	The final dividend of US$1.12 per share will be payable on 11th May 2017, subject to approval at the Annual General Meeting to be held on 4th May 2017, to shareholders on the register of members at the close of business on 17th March 2017.  The shares will be quoted ex-dividend on the Singapore Exchange and the London Stock Exchange on 15th and 16th March 2017, respectively.  The share registers will be closed from 20th to 24th March 2017, inclusive.  The dividend will be available in cash with a scrip alternative. 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 for the 2016 final dividend by notifying the United Kingdom transfer agent in writing by 21st April 2017.  The sterling equivalent of dividends declared in United States dollars will be calculated by reference to a rate prevailing on 26th April 2017. Shareholders holding their shares through CREST in the United Kingdom will receive their cash dividends in sterling only as calculated above.  Shareholders holding their shares through The Central Depository (Pte) Limited ('CDP') in Singapore will receive their cash dividends in United States dollars unless they elect, through CDP, to receive Singapore dollars. Shareholders on the Singapore branch register who wish to deposit their shares into the CDP system by the dividend record date, being 17th March 2017, must submit the relevant documents to M & C Services Private Limited, the Singapore branch registrar, no later than 5.00 p.m. (local time) on 16th March 2017.

The Jardine Matheson Group

Jardine Matheson is a diversified Asian-based group with unsurpassed experience in the region, having been founded in China in 1832.  It has a broad portfolio of market-leading businesses, which represent a combination of cash generating activities and long-term property assets and are closely aligned to the increasingly prosperous consumers of the region. The Group's businesses aim to produce sustainable returns by providing their customers with high quality products and services.

Jardine Matheson operates principally in Greater China and Southeast Asia, where its subsidiaries and affiliates benefit from the support of the Group's extensive knowledge of the region and its long-standing relationships. These companies are active in the fields of motor vehicles and related operations, property investment and development, food retailing, home furnishings, engineering and construction, transport services, insurance broking, restaurants, luxury hotels, financial services, heavy equipment, mining and agribusiness.

Jardine Matheson holds interests directly in Jardine Pacific (100%), Jardine Motors (100%) and Jardine Lloyd Thompson (42%), while its 84% held Group holding company, Jardine Strategic, is interested in Hongkong Land (50%), Dairy Farm (78%), Mandarin Oriental (77%) and Jardine Cycle & Carriage (75%), which in turn has a 50% shareholding in Astra.  Jardine Strategic also has a 57% shareholding in Jardine Matheson.

Jardine Matheson Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore.  Jardine Matheson Limited operates from Hong Kong and provides management services to Group companies.

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For further information, please contact:

Jardine Matheson Limited
John Witt	(852) 2843 8278
Brunswick Group Limited
Karin Wong	(852) 3512 5077

Full text of the Preliminary Announcement of Results and the Preliminary Financial Statements for the year ended 31st December 2016 can be accessed through the internet at www.jardines.com.

 

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