29th Mar 2006 10:05
Jardine Matheson Hldgs Ld29 March 2006 To: Business Editor 29th March 2006 For immediate release The following announcement was today issued to the London Stock Exchange. Jardine Matheson Holdings Limited2005 Preliminary Announcement of Results Highlights • Underlying earnings and net assets per share up strongly• Full-year dividend up 13%• Good profit growth at Astra and Dairy Farm• Hongkong Land property portfolio value increases 34%• Astra consolidated as a subsidiary• Jardine Strategic acquires 20% interest in Rothschilds Continuation "After a number of years of outstanding profit increases, the effects on some Asian economies of higher interest rates and oil prices may dampen results in thecurrent year, particularly in Indonesia. The longer-term prospects for JardineMatheson, however, remain encouraging." Henry Keswick, Chairman 29th March 2006 Year ended 31st December 2005 2004 Change US$m US$m %-------------------------------------------------------------------------------Underlying profit attributable to shareholders* 463 394 +17Profit attributable to shareholders 1,245 947 +31Shareholders' funds 5,020 3,639 +38------------------------------------------------------------------------------- US$ US$ %-------------------------------------------------------------------------------Underlying earnings per share* 1.33 1.12 +19Earnings per share 3.59 2.69 +33Dividends per share 0.45 0.40 +13-------------------------------------------------------------------------------Net asset value per share 14.33 10.56 +36-------------------------------------------------------------------------------* The basis of calculation is set out in note 6.-------------------------------------------------------------------------------The final dividend of USc35.65 per share will be payable on 21st June 2006,subject to approval at the Annual General Meeting to be held on 15th June 2006,to shareholders on the register of members at the close of business on 21st April 2006 and will be available in cash with a scrip alternative. The ex-dividend date will be on 19th April 2006, and the share registers will be closed from 24th to 28th April 2006, inclusive. Jardine Matheson Holdings Limited Preliminary Announcement of ResultsFor The Year Ended 31st December 2005 Overview Good performances from a majority of the Group's operations enabled JardineMatheson to achieve a satisfactory increase in profits and shareholders' fundsin 2005. Performance Jardine Matheson's underlying profit rose 17% in 2005 to US$463 million andunderlying earnings per share rose 19% to US$1.33, benefiting from the effect ofearlier share repurchases. Earnings were, however, flattered by certain mark tomarket foreign exchange hedging contracts, which produced gains in 2005following losses in 2004. Without these, the Group's underlying profit growthwould have been closer to 10%. In terms of trading profit the main contributors to a successful year were Astraand Dairy Farm, which both produced fine results, together with continuingbusinesses within Jardine Pacific. The significant increase in total net profitfor the period was primarily due to the Company's share of the 34% revaluationof Hongkong Land's investment properties, which was taken through the profit andloss account. Net assets per share rose 36% to US$14.33, which figure does notreflect the market value of the Group's listed subsidiaries and affiliates. The Board is recommending a final dividend of USc35.65 per share, which togetherwith the interim dividend of USc9.35 gives a total for the full year of USc45.00per share, an increase of 13% compared with USc40.00 for the prior year. Business Developments In recent years Group companies have achieved good operating cash flows,improved earnings and stronger balance sheets. Advantage has also been taken ofthe low interest rate environment to secure long-term financing. The resultantsound financial position has supported broad capital expenditure programmes,dividend growth and the pursuit of opportunities for profitable expansion. The Group's policy of broadening its earnings base by complementing itsestablished North Asian business portfolio with investments in Southeast Asia isproving effective. Some 44% of underlying profit came from Southeast Asia in2005, and it is expected that the region will remain a significant contributor. A milestone was reached in August 2005 when Jardine Cycle & Carriage took itsshareholding in Astra above 50% to make it a Group subsidiary. Astra is one ofIndonesia's leading companies with a diversified portfolio of businessesprimarily in the motor sector, and the investment has given the Group anexceptional exposure to one of Southeast Asia's most promising economies. In anactive year, Astra Automotive opened its third Honda motorcycle plant inSeptember, and Toyota's decision to make Indonesia the manufacturing base for anumber of models bodes well for the motor industry in the country. Threestrategic financial services partnerships were formed to support Astra'sautomotive and heavy equipment operations. Its agribusiness subsidiary isexpanding its oil palm plantations, and the group has begun to developinfrastructure interests. Jardine Cycle & Carriage's strategy of focusing on motor interests and itsinvestment in Astra led to its decision to distribute in specie its majorityshareholding in MCL Land, the Singapore-listed residential property developer.The distribution enabled Jardine Cycle & Carriage's shareholders to make theirown investment decision when a cash offer for MCL Land was subsequently made byHongkong Land. When the offer closed in February 2006 Hongkong Land had achieveda 77% interest. Hongkong Land's own development pipeline is stronger than it has been for manyyears with interests in three major sites secured in 2005 for commercial andresidential developments in Singapore, mainland China and Macau. Of its tworesidential projects in Hong Kong, work has commenced on the first site and isdue to begin shortly on the second. These developments coupled with its stake inMCL Land will complement its prime Hong Kong investment portfolio. The sale of two businesses by Jardine Pacific in 2005 has further refined itsportfolio, and its operations are now concentrated on the areas of transportservices, engineering and construction, restaurants and information technology.These businesses are being developed in Asia through organic growth andacquisition. Jardine Motors is building its franchise portfolio in the United Kingdom by wayof selective acquisitions, while in Southern China it has put in place a networkof service centres that will form the backbone of a dealership structure oncethe regulations permit. Recent structural and regulatory changes in the insurance broking industry haveprompted Jardine Lloyd Thompson to undertake a strategic review of itsoperations so as to establish an appropriate response. The emphasis will be oncost control, operational efficiency and the active development of those areaswhere the company has the strength in depth to compete effectively. Dairy Farm is steadily building its established retail operations and expandinginto new markets, including mainland China. It has increased its directshareholding in its Indonesian affiliate, and the potential for its supermarketand health and beauty businesses in India has improved with the introduction ofnew partners and a new management team. Achieving international recognition of the quality of its brand has been a keyfactor in Mandarin Oriental's ability to attract a growing number of luxuryhotel and resort prospects. Expansion continued in 2005 with the opening of newhotels in Hong Kong and Tokyo and the announcement of four new managementcontracts. With a portfolio of 21 hotels in operation and eight underdevelopment representing some 8,500 rooms, Mandarin Oriental is well on its wayto reaching its goal of operating 10,000 rooms in key destinations. Jardine Strategic has acquired a 20% shareholding in Rothschilds ContinuationHoldings, a holding company within the Rothschild group and the parent companyof N M Rothschild & Sons, rekindling a relationship that began in 1838 whenJardine Matheson was appointed as agent for Rothschild in China. In addition toits successful core investment banking business, Rothschild is involved incommercial banking, private banking and the private equity sector. Outlook Asia, and not least Hong Kong, remains one of the most attractive areas forbusiness in the world. Throughout the Region, Jardine Matheson's operationscontinue to pursue numerous avenues to sustain growth in shareholder value,based on sound finance and the achievement of leadership in their chosen fields. In conclusion, the Chairman, Henry Keswick said, "After a number of years ofoutstanding profit increases, the effects on some Asian economies of higherinterest rates and oil prices may dampen results in the current year,particularly in Indonesia. The longer-term prospects for Jardine Matheson,however, remain encouraging." Managing Director's Review Group Review Jardine Pacific's earnings from its continuing businesses grew, although itstotal results reflected the absence of profits from businesses sold. There weresome good performances from its aviation and shipping operations and fromrestaurants in Hong Kong and Taiwan, but the results were mixed in theengineering and construction sector where Gammon has only just begun to showsigns of recovery. Interests in Pacific Finance and EastPoint were sold duringthe year. The decision of HACTL's largest customer to develop its own cargoterminal at Hong Kong's international airport will impact profitability in themedium term. Losses are also continuing at River Trade Terminal in which thegroup has a 14% stake. The outlook for Jardine Pacific in 2006 remainspromising, but growth in earnings will depend largely on the extent of Gammon'simprovement. Jardine Motors' continuing businesses have performed well. In the United Kingdomits dealerships increased sales of new cars despite an overall decline in themarket, and the results were supplemented by the resolution of propertyexposures within provisions. The group maintained its high market share in HongKong, ending the year with a good order book. In Southern China its servicecentre chain now awaits the necessary regulatory approvals to establish itselfas a dealership network. Its prospects remain satisfactory, although the 2006result is not expected to benefit from further property related gains in theUnited Kingdom. Jardine Lloyd Thompson had a difficult year despite new business wins in itsRisk & Insurance operation due to the continued soft market, cost and feepressures and the expiry of some of its favourable US dollar hedging contracts.Trading profit increased in its Employee Benefits Group, where resources arebeing devoted to the business opportunities being presented by pensionlegislation in the United Kingdom. Under a new chief executive officer, thecompany is conducting a thorough review of its operations and announcing changesto increase efficiency and improve client service. It is, however, unlikely thatthese changes will have an immediate material impact on performance in currentmarket conditions. Hongkong Land recorded significant increases in asset values as the Hong Kongcommercial property market improved, and its rental renewals began to turnstrongly positive. The extensive refurbishment and redevelopment undertaken inrecent years of both the office and retail components of its Central portfoliohas enhanced the benefits arising from the current positive cycle. Hongkong Landis also expanding regionally, with three joint-venture stakes in majordevelopment sites being secured in 2005 to lay the foundation for future profitgrowth. Its residential business also took a step forward with the acquisitionof a controlling interest in Singapore-based MCL Land in early 2006 at a cost ofUS$307 million. The timing of residential completions will again hold backearnings in 2006, but with the benefit of positive rental reversions theprospects for 2007 are excellent. Dairy Farm's multi-format retail operations are continuing to perform well andthe group is building its presence in its established markets across Asia. Atthe year end it was operating 3,165 stores, including 41 hypermarkets inMalaysia, Indonesia and Singapore which have become an important element of itsgrowth strategy. It has increased its direct shareholding in its Indonesianaffiliate, and its prospects in India have been improved with the introductionof new joint venture partners. Expansion is taking place in mainland China,Macau and Thailand, and its restaurant associate has recently acquired the GenkiSushi chain in Hong Kong. Mandarin Oriental achieved strong earnings growth in 2005 as a result ofimproved room rates and the contribution from recently opened hotels. Thecompany's finances have also benefited from the sale of its Hawaiian hotelproperty interest in 2005, followed by the sale of The Mark hotel in New York in2006. Properties under development have risen to eight and, with increasingbrand recognition, further hotel management contracts can be expected to follow.Mandarin Oriental's trading performance should continue to improve, althoughresults in 2006 will be affected by the eight-month closure of its Hong Kongflagship hotel for a US$140 million renovation. Jardine Cycle & Carriage's underlying profit was maintained in 2005 as a goodperformance by Astra compensated for a reduced contribution from MCL Land andlower motor earnings following the withdrawal from Australasia. Astra became a50.1% subsidiary during the year and its results have been consolidated for thefirst time, which has required the inclusion of an additional month of Astra'searnings to align its accounting period. In December 2005, Jardine Cycle &Carriage's shareholders approved a dividend in specie of the company's 65.6%shareholding in MCL Land, leaving the group focused on motor interests inSoutheast Asia and its strategic investment in Astra. All of Astra's major businesses performed above expectation in the first ninemonths of the year, but weakened in the last quarter as the economy slowed inIndonesia. Its automotive interests were strong for most of the year, and therewas further growth in its market-leading vehicle financing operations. Asignificant increase in sales of heavy equipment was achieved, and its miningsubsidiary, Pama, performed well. Astra's strategy is to concentrate on thedevelopment of its six core businesses of automotive, heavy equipment, financialservices, agribusiness, IT services and infrastructure. While the recenteconomic slowdown in Indonesia is likely to affect Astra's performance in 2006,its prospects for continued growth in the medium-term are good. Finance The Group requires that its businesses remain soundly financed; to allow foradequate investment in their operations and to support measured expansion. TheJardine Matheson Group consolidated net debt at the end of the year was US$1.8billion, excluding the borrowings of its Indonesian finance companies. Gearingwas 20% at 31st December 2005, while the average tenor of the Group's debt issome 4.6 years. At the centre, Jardine Matheson itself had virtually no net debtat the year end. The financial status of the Group's individual operations is also good. DairyFarm ended the year with no net debt, while Astra's underlying financialposition is now robust with strong cash flows and limited exposure to the USdollar. Mandarin Oriental has significantly improved its balance sheet and endedthe year with its gearing sharply reduced. Group companies have also taken advantage of the low interest rate environmentto access capital markets and lengthen the term of their indebtedness. HongkongLand raised a total of US$815 million with two bond issues, while UnitedTractors in Indonesia arranged a US$140 million loan facility on advantageousterms. Going Forward Our businesses are trading well and the longer-term outlook is promising. Percy WeatherallManaging Director29th March 2006 Operating Review Jardine Pacific Jardine Pacific's result for 2005 reflected some good performances from itscontinuing businesses. Underlying profit of US$90 million was only 4% lowerdespite the absence of profits from businesses sold in 2004. Shareholders' fundswere reduced by 3% to US$317 million, and the return on average shareholders'funds, excluding non-recurring items, increased to 28%. The company's interestsin Pacific Finance and EastPoint were sold during the year. The following is summary financial information of Jardine Pacific's largerbusinesses: Underlying profit Shareholders' funds 2005 2004 2005 2004 US$m US$m US$m US$m-----------------------------------------------------------------------------------Gammon 1 (8) 43 39HACTL 33 29 109 105Jardine Aviation Services 9 8 16 14Jardine Engineering Corporation 10 10 26 29Jardine OneSolution 6 8 18 23Jardine Property Investment 3 3 116 99Jardine Restaurants 13 10 5 2Jardine Schindler 13 11 29 26Jardine Shipping Services 7 9 13 12Other Interests 2 4 46 34Corporate (14) (9) (91) (100)----------------------------------------------------------------------------------- 83 75 330 283Discontinued Businesses 7 19 - 43----------------------------------------------------------------------------------- 90 94 330 326 -------------------------------------------- HACTL produced another year of record volumes and its profit contribution roseby 14%. JARDINE AVIATION SERVICES also benefited from increased activity at HongKong International Airport and achieved a 12% growth in profit. River TradeTerminal, in which the group has a 14% investment, continued to face a verydifficult operating environment. JARDINE SHIPPING SERVICES suffered fromindustry-wide rate declines and its contribution was reduced to US$7 million. GAMMON began to show signs of recovery following a US$8 million loss in 2004. JARDINE SCHINDLER benefited from strong markets in both Hong Kong and Singaporeand produced a 22% increase in earnings. JARDINE ENGINEERING CORPORATION'scontinuing operations generally performed well following the sale in 2004 of itsCaterpillar dealerships in Taiwan and Hawaii. JARDINE ONESOLUTION continued to experience lower margins and saw profit slip to US$6 million. JARDINE RESTAURANTS' continuing operations in Hong Kong and Taiwan produced good earnings growth. While the outlook for Jardine Pacific's businesses in 2006 remains positive,disposals made during 2005 will impact earnings and growth will depend largelyon the extent of GAMMON's improvement. Jardine Motors Jardine Motors benefited from improvements in most of its major businesses in2005 with underlying net profit from continuing businesses increasing by 29% toUS$44 million. In Hong Kong, Zung Fu maintained its high Mercedes-Benz market share in aslightly reduced new car market. The launch of new models in the last quarter of2005 enabled it to build up a healthy order book for delivery in 2006. Theperformance of its service centres remained strong, while results fromcommercial vehicles and car parks were steady. The relatively new Hyundaipassenger car franchise also achieved an improved performance with a goodcontribution from aftersales. The Mercedes-Benz operations in Macau had a goodyear. Zung Fu has continued to expand its service centre network in Southern China,while withdrawing from those territories outside of its main areas of focus, andhas achieved a significantly improved profit. In the United Kingdom there was an improvement in the underlying dealershipoperating profit as growth was achieved in new vehicle volumes against thebackground of an overall decline in the market. Appleyard Vehicle Contracts, thevehicle leasing joint venture, increased the size of its fleet and producedsatisfactory results despite falls in used car residual values. The resolutionof certain property exposures within previously made provisions enhanced theresults, as did lower finance charges following a reduction in debt. Thedealership portfolio in the United Kingdom continues to be strengthened by theaddition of selective franchises. Jardine Lloyd Thompson Jardine Lloyd Thompson's turnover for 2005 was US$877 million, an increase of3%. Trading profit, being turnover less expenses and excluding exceptional itemsand impairment charges, was 21% lower at US$120 million. Profit before tax wasUS$134 million, compared to US$154 million in 2004. The competitive insurance market conditions that prevailed throughout the yearintensified in the second half. The Risk & Insurance group's turnover grew by 4%to US$716 million, but trading profit fell 26% to US$118 million, producing atrading margin of 16% compared to 23% for 2004. The hurricanes in 2005 impactedonly those sectors directly affected, such as energy and property catastrophe,which represent only 15% of Risk & Insurance revenue. Otherwise, there isongoing downward pressure on pricing, and intense competition between brokersfor market share is putting further pressure on fees. The results were alsoaffected by lower profits from JLT Risk Solutions, due in part to adversecurrency movements, and reduced earnings from placement or market servicesagreements. The Employee Benefits Group's turnover increased by 6% and trading profit was up13% at US$25 million, reflecting a trading margin of 15%. The Employee Benefitsbusiness in the United Kingdom achieved an increase in turnover of 19%, and thetrading margin of 16% exceeded the long-term goal of 15% for the first time. Inthe United States, however, the trading margin fell from 15% to 12%, reflectingan increasingly competitive operating environment and sale of a non-corebusiness. A review of JLT's operations has been initiated by its new chief executiveofficer, which will allow JLT to refine its strategy in response to thechallenges it faces. Changes have already been announced, including the plannedmerger of its UK based insurance broking businesses. While the company isexpected to benefit from areas of expansion and improved efficiencies, thesewill be largely offset in 2006 by the highly competitive markets and continuingpressure on fees. Hongkong Land The broad-based recovery in the Hong Kong commercial property market continuedthroughout 2005. This led to the absorption of the additional office spacecompleted in Central in recent years and robust growth in the retail sector.Capital values and rents in both these sectors rose significantly. HongkongLand's office rental reversions turned positive during 2005, but the benefit toearnings was offset by reduced profits from the residential sector where therewere fewer completions. Consequently, Hongkong Land's underlying earningsreduced 5% to US$188 million. A 34% rise in the value of the Hongkong Land'sinvestment property portfolio to US$9,779 million led to its adjusted net assetvalue per share increasing 41% to US$3.86. Progress was made in its existing development projects. In Singapore, 70% of itsjoint venture development at One Raffles Quay has been pre-committed ahead ofcompletion in 2006. In Beijing, the second phase of its residential development,Central Park, was completed during the year, and the third phase currently underconstruction has been substantially pre-sold. In Hong Kong, work is commencingon two residential development sites. Three major sites were secured in 2005 that will provide a strong developmentpipeline and complement the group's prime investment portfolio. In July, theBusiness and Finance Centre site in Singapore was won by a consortium comprisingHongkong Land and its partners in One Raffles Quay. In Chongqing, in WesternChina, a joint venture with the Longhu group won the right to develop anexcellent 450,000 sq. m gross site. In Macau, a joint venture with Shun TakHoldings Limited is to develop a prime site that will comprise high-endresidential apartments, a luxury shopping podium and a luxury hotel. On 17th February 2006 Hongkong Land completed a voluntary cash offer for MCLLand, in which it acquired a 77% interest at a cost of US$307 million. Theacquisition gives scale to Hongkong Land's expanding residential propertybusiness and provides a platform for growth in Southeast Asia. The outlook for Hongkong Land's office portfolio remains good, although the lackof residential completions will hold back its 2006 result. Its developmentpipeline and the positive rental cycle give confidence for its progress in theyears to come. Dairy Farm Dairy Farm's sales, including associates, increased by 8% to US$5.5 billion in2005, supported by recent acquisitions and favourable economic conditions inmost of its major markets. Underlying profit rose 16% to US$190 million. Thegroup ended the year with no net debt despite the payment of a special dividendof US$334 million in May. Dairy Farm's operations in North Asia performed well increasing sales by 12% andprofit by 18%. An improving economy in Hong Kong helped Wellcome to make furthergains, and Mannings health and beauty stores produced another fine result. Anacquisition in late 2004 underpinned a much better performance from 7-Eleven. Astrong second half helped Wellcome Taiwan to record a good year. In Guangdong,7-Eleven continued its expansion, while Mannings has reached 11 stores after itsfirst full year of operation. South Korean associate, Olive Young, finished theyear with 25 outlets. IKEA in Hong Kong and Taiwan recorded a decline inunderlying profit in a challenging environment; two new stores are scheduled toopen in Taiwan in 2006. The underlying results of the group's Hong Kong-based restaurant associate,Maxim's, were flat having been affected by strong competition and closure costs.In early 2006, it completed the acquisition of a majority interest in the18-outlet Genki Sushi chain. South Asia produced excellent growth with sales up by 33% and profits up by 26%.The group's operations in both Singapore and Malaysia performed well, andIndonesia continued to improve. These businesses now operate 41 Gianthypermarkets. New partners and a fresh management team in India havesignificantly enhanced the prospects for the group's supermarket and health andbeauty businesses there. Dairy Farm increased its direct shareholding in its Indonesian supermarketaffiliate, Hero, from 12% to 44% during the year, and holds a further 25%interest through exchangeable bonds. The restructuring of the group's Malaysianproperty portfolio through a sale and leaseback transaction was completed atyear end, and further properties in Indonesia and Singapore were also sold undersale and leaseback arrangements. Dairy Farm entered new markets in 2005 withMannings and 7-Eleven opening in Macau and Guardian starting up in Bangkok, allwith promising results. Management remains focused on developing retailoperations in Asia, both organically and through acquisitions. Mandarin Oriental Mandarin Oriental's results benefited from increasing room rates as demand inmany cities strengthened. Net profit in 2005 was US$41 million, excluding apost-tax gain of US$36 million arising from a disposal of its hotel propertyinterest in Hawaii. This compares with US$29 million in 2004, which hadbenefited from a US$10 million investment writeback. There were significantprofit increases at the group's wholly-owned Hong Kong hotels, with its othersubsidiary hotels also producing better results, including the recently openedproperty in Washington D.C. Operating results from associates and joint venturesrose with good performances from hotels in Macau, Miami, New York and Singapore. Mandarin Oriental's balance sheet was strengthened following the conversion ofthe group's 6.75% convertible bonds into shares in the early part of the yearand the receipt of the US$97 million proceeds from the Hawaii sale. The US$150million sale of The Mark hotel in New York was completed in February 2006, and again of some US$35 million arising from the disposal will be recognized in the2006 results. The international visibility of the Mandarin Oriental brand has been enhancedconsiderably in recent years with the opening of select properties in keydestinations and the renovation of existing flagships. Its original flagshiphotel, Mandarin Oriental, Hong Kong, closed at the end of December 2005 for aUS$140 million eight-month renovation. Mandarin Oriental, Tokyo opened at theyear end, and followed the successful opening of The Landmark in Hong Kong in August. While the group has ceased to manage the Hotel Royal Monceau in Paris,its luxury hotels and resorts under development in Prague, on Hainan Island inChina and in Riviera Maya, Mexico will open over the next 12 months, with Bostonfollowing in late 2007. New management contracts were also announced for hoteldevelopments in Chicago, Grand Cayman, Las Vegas and Macau. The group nowoperates 21 hotels around the world with a further eight hotels underdevelopment, representing a total of some 8,500 rooms. Markets are expected to remain favourable for Mandarin Oriental in 2006 withroom rates benefiting from growing demand and limited new supply. While thetemporary closure of Mandarin Oriental, Hong Kong will inevitably hold back thegroup's results in 2006, the effect will be partially offset by increasingcontributions from new properties. Jardine Cycle & Carriage Jardine Cycle & Carriage's underlying profit after tax and minority interestsrose 2% to US$299 million as a good performance from Astra compensated forreduced contributions from its property and motor interests. Jardine Cycle &Carriage increased its shareholding in Astra to 50.1% during the year and, as asubsidiary, its results are now consolidated. Astra's US$275 millioncontribution for 2005 does, however, include an extra month of earnings requiredto align the consolidation on a same-month basis; it had previously been equityaccounted one month in arrear as an associate. Excluding the profit for month ofDecember 2004, the contribution from Astra would have been US$256 million. Growth in the Indonesian motor car and motorcycle markets was strong for most of2005, and Astra was able to improve its market share. Its financial servicesbusinesses also benefited from this growth. There was, however, a significantdecline in demand in the final quarter in response to fuel price increases andrising interest rates, and this negative sentiment is expected to persist into2006. A new US$140 million Honda factory with an annual capacity of one millionunits was opened by the President of Indonesia in September 2005. Astra's heavy equipment division produced a good performance from both Komatsusales and contract mining operations in 2005. Profit from agribusiness wasslightly below the previous year, although prospects remain good and Astra AgroLestari is expanding its oil palm plantation interests. Astra has acquired a 34%stake in a toll road project, and is looking to participate in other newinfrastructure projects announced by the Indonesian Government. Jardine Cycle & Carriage's directly-held continuing motor operations inSingapore, Malaysia and Indonesia produced higher earnings in 2005, but theoverall contribution declined 16% to US$29 million following the withdrawal fromAustralia and New Zealand. In early 2006 a new 18,600 sq. m Mercedes-Benzflagship showroom was opened in Singapore, and new facilities have also beenopened in Malaysia. MCL Land made progress during the year in the marketing and construction ofdevelopment properties. Its underlying profit contribution to the group,however, was significantly lower as profit was recognized on only one completedproject in 2005, compared to two more substantial projects in the prior year. InDecember 2005, shareholders approved the distribution in specie of the company's65.6% interest in MCL Land, which was implemented on 25th January 2006. --------------------------------------------------------------------------------Jardine Matheson Holdings LimitedConsolidated Profit and Loss Accountfor the year ended 31st December 2005-------------------------------------------------------------------------------- 2005 2004 US$m US$m -------------------------------Revenue (note 2) 11,929 8,970Cost of sales (9,131) (6,871) --------- ---------Gross profit 2,798 2,099Other operating income 356 330Selling and distribution costs (1,593) (1,305)Administration expenses (695) (442)Other operating expenses (56) (198) --------- ---------Operating profit (note 3) 810 484Financing charges (154) (138) Share of results of associates and joint ventures excluding change in fair value of investment properties 523 526Increase in fair value of investment properties 814 611 Share of results of associates and joint ventures (note 4) 1,337 1,137 --------- ---------Profit before tax 1,993 1,483Tax (note 5) (173) (100) --------- ---------Profit for the year 1,820 1,383 --------- ---------Attributable to:Shareholders of the Company 1,245 947Minority interests 575 436 --------- --------- 1,820 1,383 --------- --------- ------------------------------- US$ US$ ------------------------------- Earnings per share (note 6)- basic 3.59 2.69- diluted 3.55 2.67 Underlying earnings per share (note 6)- basic 1.33 1.12- diluted 1.32 1.11 ------------------------------- --------------------------------------------------------------------------------Jardine Matheson Holdings LimitedConsolidated Balance Sheetat 31st December 2005-------------------------------------------------------------------------------- 2005 2004 US$m US$m -------------------------------AssetsIntangible assets 1,753 853Tangible assets 2,404 1,423Investment properties 178 153Plantations 383 -Associates and joint ventures 5,157 4,059Other investments 686 688Financing and other debtors 1,286 1Deferred tax assets 103 58Pension assets 152 136 --------- ---------Non-current assets 12,102 7,371 --------- ---------Properties for sale - 286Stocks and work in progress 1,491 800Trade, financing and other debtors 2,411 656Current tax assets 56 18Bank balances and other liquid funds- non-finance companies 1,503 1,300- finance companies 187 - 1,690 1,300 --------- --------- 5,648 3,060Non-current assets classified as held for sale (note 7) 690 149 --------- ---------Current assets 6,338 3,209 --------- ---------Total assets 18,440 10,580 --------- --------- Equity Share capital 151 148Share premium and capital reserves 21 4Revenue and other reserves 5,629 4,164Own shares held (781) (677) --------- ---------Shareholders' funds (note 8) 5,020 3,639Minority interests 3,957 1,746 --------- ---------Total equity 8,977 5,385 --------- ---------LiabilitiesLong-term borrowings- non-finance companies 2,631 2,382- finance companies 1,005 - 3,636 2,382 Deferred tax liabilities 481 159Pension liabilities 176 153Non-current provisions 16 6Other non-current liabilities 66 33 --------- ---------Non-current liabilities 4,375 2,733 --------- ---------Creditors and accruals 2,922 1,807Current borrowings- non-finance companies 619 507- finance companies 1,169 - 1,788 507 Current tax liabilities 128 79Current provisions 54 68 --------- --------- 4,892 2,461Liabilities directly associated with non-current assets classified as held for sale (note 7) 196 1 --------- ---------Current liabilities 5,088 2,462 --------- ---------Total liabilities 9,463 5,195 --------- ---------Total equity and liabilities 18,440 10,580 --------- --------- ------------------------------- --------------------------------------------------------------------------------Jardine Matheson Holdings LimitedConsolidated Statement of Recognized Income and Expensefor the year ended 31st December 2005-------------------------------------------------------------------------------- 2005 2004 US$m US$m --------------------------------------Surpluses on revaluation of intangible assets 468 -Surpluses on revaluation of properties 77 62Gains on revaluation of other investments 48 63Actuarial gains on defined benefit pension plans 14 34Net exchange translation differences (84) (24)Gains/(losses) on cash flow hedges 24 (8)Tax on items taken directly to equity (173) (28) --------- --------- Net income recognized directly in equity 374 99Transfer to profit and loss on disposal and impairment of other investments (20) 124Transfer to profit and loss on disposal of subsidiary undertakings, associates and joint ventures (1) 36Transfer to profit and loss in respect of cash flow hedges - 5Profit for the year 1,820 1,383 --------- ---------Total recognized income and expense for the year 2,173 1,647 --------- ---------Attributable to:Shareholders of the Company 1,421 1,178Minority interests 752 469 --------- --------- 2,173 1,647 --------- --------- -------------------------------------- Revaluation of intangible assets represents that part of the increase in fair value of Astra's and PT Hero Supermarket's identifiable net assets that is attributableto the Group's previously held interests in those companies on the date they becamesubsidiary undertakings. --------------------------------------------------------------------------------Jardine Matheson Holdings LimitedConsolidated Cash Flow Statementfor the year ended 31st December 2005-------------------------------------------------------------------------------- 2005 2004 US$m US$m ------------------------------------Operating activitiesOperating profit 810 484Interest income (56) (14)Depreciation and amortization 249 161Other non-cash items (38) (9)(Increase)/decrease in working capital (361) 27Interest received 55 16Interest and other financing charges paid (165) (111)Tax paid (179) (65) --------- --------- 315 489Dividends from associates and joint ventures 311 241 Cash flows from operating activities 626 730 Investing activitiesPurchase of Astra (note 10(a)) 320 (319)Purchase of other subsidiary undertakings (note 10(b)) (101) (169)Purchase of associates and joint ventures (note 10(c)) (303) (69)Purchase of other investments (24) (20)Purchase of land use rights (12) (10)Purchase of tangible assets (458) (194)Purchase of investment properties (18) (1)Purchase of plantations (6) -Sale of subsidiary undertakings (note 10(d)) 80 210Sale of associates and joint ventures (note 10(e)) 173 49Sale of other investments (note 10(f)) 40 66Sale of land use rights 33 79Sale of tangible assets 63 36Sale of investment properties 49 183 Cash flows from investing activities (164) (159) Financing activitiesIssue of shares 13 15Repurchase of shares - (204)Capital contribution from minority shareholders 4 7Drawdown of borrowings 9,735 5,636Repayment of borrowings (9,516) (5,578)Dividends paid by the Company (76) (68)Dividends paid to minority shareholders (199) (64) Cash flows from financing activities (39) (256)Effect of exchange rate changes (2) 8 --------- ---------Net increase in cash and cash equivalents 421 323Cash and cash equivalents at 1st January 1,263 940 --------- ---------Cash and cash equivalents at 31st December 1,684 1,263 --------- --------- --------------------------------------------------------------------------------Jardine Matheson Holdings LimitedAnalysis of Profit Contributionfor the year ended 31st December 2005 -------------------------------------------------------------------------------- 2005 2004 US$m US$m ------------------------------------Group contribution Jardine Pacific 90 94Jardine Motors Group 47 36Jardine Lloyd Thompson 29 37Hongkong Land 65 66Dairy Farm 118 101Mandarin Oriental 21 10Jardine Cycle & Carriage 23 37Astra 127 98Corporate and other interests (57) (85) --------- ---------Underlying profit 463 394Value added tax recovery in Jardine Motors Group 3 46 --------- ---------Underlying profit including value added tax recovery 466 440Increase in fair value of investment properties 664 503Other adjustments 115 4 --------- ---------Profit attributable to shareholders 1,245 947 --------- --------- Analysis of Jardine Pacific's contribution Gammon Construction 1 (8)HACTL 33 29Jardine Aviation Services 9 8Jardine Engineering Corporation 10 10Jardine OneSolution 6 8Jardine Property Investment 3 3Jardine Restaurants 13 10Jardine Schindler 13 11Jardine Shipping Services 7 9Other interests 2 4Corporate (14) (9) --------- --------- 83 75Discontinued businesses 7 19 --------- --------- 90 94 --------- --------- Analysis of Jardine Motors Group's contribution Hong Kong and Mainland China 24 21United Kingdom 21 15Corporate (1) (2) --------- --------- 44 34Discontinued businesses 3 6 --------- --------- 47 40Land use rights written off - (4) --------- --------- 47 36 --------- --------- ------------------------------------ --------------------------------------------------------------------------------Jardine Matheson Holdings LimitedNotes-------------------------------------------------------------------------------- 1. Accounting Policies and Basis of Preparation The financial information contained in this announcement has been based on theaudited results for the year ended 31st December 2005 which have been preparedin conformity with International Financial Reporting Standards, includingInternational Accounting Standards and Interpretations adopted by the International Accounting Standards Board. There have been no changes to the accounting policies described in the 2004 annual financial statements. The Group's reportable segments are set out in note 2. 2. Revenue 2005 2004 US$m US$m ------------------------------------- By business: Jardine Pacific 1,024 1,093 Jardine Motors Group 2,078 2,082 Dairy Farm 4,749 3,956 Mandarin Oriental 399 337 Jardine Cycle & Carriage 1,087 1,500 Astra 2,590 - Other activities 2 2 --------- --------- 11,929 8,970 --------- --------- 3. Operating Profit 2005 2004 US$m US$m -------------------------------- By business: Jardine Pacific 105 67 Jardine Motors Group 68 123 Dairy Farm 237 265 Mandarin Oriental 115 44 Jardine Cycle & Carriage 64 91 Astra 198 - --------- --------- 787 590 Corporate and other interests 23 (106) --------- --------- 810 484 --------- --------- 4. Share of Results of Associates and Joint Ventures 2005 2004 US$m US$m -------------------------------- By business: Jardine Pacific 64 55 Jardine Motors Group 8 13 Jardine Lloyd Thompson 47 32 Hongkong Land 87 110 Dairy Farm 29 21 Mandarin Oriental 12 12 Jardine Cycle & Carriage 193 283 Astra 82 - Corporate and other interests 1 - --------- --------- 523 526 Increase in fair value of investment properties - Hongkong Land 813 611 - other 1 - --------- --------- 1,337 1,137 --------- --------- Results are shown after tax and minority interests. 5. Tax 2005 2004 US$m US$m --------------------------------- Current tax 162 102 Deferred tax 11 (2) --------- --------- 173 100 --------- --------- Tax on profits has been calculated at rates of taxation prevailing in theterritories in which the group operates and includes United Kingdom tax of US$2 million (2004: US$2 million). 6. Earnings Per Share Basic earnings per share are calculated on profit attributable to shareholdersof US$1,245 million (2004: US$947 million) and on the weighted average number of347 million (2004: 352 million) shares in issue during the year. The weightedaverage number excludes the Company's share of the shares held by subsidiaryundertakings and the shares held by the Trustee under the Senior Executive ShareIncentive Schemes. Diluted earnings per share are calculated on profit attributable to shareholdersof US$1,243 million (2004: US$946 million), which is after adjusting for theeffects of the conversion of dilutive potential ordinary shares of subsidiaryundertakings, associates or joint ventures, and on the weighted average numberof 350 million (2004: 355 million) shares after adjusting for the number ofshares which are deemed to be issued for no consideration under the SeniorExecutive Share Incentive Schemes based on the average share price during theyear. Additional basic and diluted earnings per share are also calculated based onunderlying earnings attributable to shareholders. A reconciliation of earningsis set out below: 2005 2004 Basic Diluted Basic Diluted earnings earnings earnings earnings per share per share per share per share US$m US$ US$ US$m US$ US$ ----------------------------------------------------------------------------------------Underlying profit 463 1.33 1.32 394 1.12 1.11Value added tax recovery in Jardine Motors Group 3 46 ------- -------Underlying profit including value added tax recovery 466 1.34 1.33 440 1.25 1.24 Increase in fair value of investment properties 664 503Other adjustments 115 4 779 507 ------- -------Profit attributable to shareholders 1,245 3.59 3.55 947 2.69 2.67 ------- ------- A fuller analysis of the adjustments made to the profit attributable toshareholders in arriving at the underlying profit is set out below: 2005 2004 US$m US$m ----------------------------------Increase in fair value of investment properties- Hongkong Land 647 484- other 17 19 664 503Sale and closure of businesses- EastPoint 23 -- Pacific Finance 22 -- Kahala Mandarin Oriental 22 -- Hawaiian restaurant operations - 17- Asia Container Terminals - 20- Hong Kong Ice & Cold Storage - 9- motor operations 5 42- other 8 (4) 80 84Asset impairment- listed investment+ - (110)- Mandarin Oriental, Kuala - 6 Lumpur- port facilities (3) (25)- other 2 1 (1) (128)Buyout of minority interests in Jardine Lloyd Thompson 18 -Realization of exchange losses* - (9)Revaluation surplus/(deficit) on properties and provision for onerous leases 5 (4)Fair value (loss)/gain on plantations (1) 1Fair value gain on conversion option component of 4.75% Guaranteed Bonds due 2007 - 7Sale of property interests (1) 40Sale of investments 16 17Restructuring of businesses and other (1) (4) --------- --------- 779 507 --------- --------- + In view of the duration and the extent to which the fair value of the Group'sinvestment in J.P. Morgan Chase was less than its cost, the Directors concludedthat the investment was impaired and it was appropriate to write down the costto market value at 31st December 2004. Accordingly, the cumulative fair valueloss of US$110 million as at that date was transferred from reserves to theconsolidated profit and loss account. * Arising on repatriation of capital from a foreign subsidiary undertaking. 7. Non-current Assets Classified as Held for Sale The major classes of assets and liabilities classified as held for sale are set out below: 2005 2004 US$m US$m ---------------------------------- Intangible assets 7 - Tangible assets 72 108 Investment properties 24 41 Associates and joint ventures 34 - Other investments 28 - Deferred tax assets 1 - Current assets* 524 - --------- --------- Total assets 690 149 --------- --------- Long-term borrowings 81 - Deferred tax liabilities 1 - Other non-current liabilities 2 - Current liabilities 112 1 --------- --------- Total liabilities 196 1 --------- --------- At 31st December 2004, the non-current assets classified as held for saleincluded Dairy Farm's property portfolio in Malaysia of US$107 million andJardine Cycle & Carriage's investment properties in Malaysia of US$41 million.With the exception of two properties in Dairy Farm and an investment property inJardine Cycle & Carriage with carrying values of US$7 million and US$4 millionwhich were reclassified to tangible assets and investment propertiesrespectively, all other properties were sold during the year resulting in apost-tax loss of US$4 million. During the year, Jardine Pacific's interests in Pacific Finance and BALtranswere classified as held for sale. Pacific Finance was sold for US$59 million anda profit of US$22 million was recognized. BALtrans was disposed of in January2006 for US$31 million, against a carrying amount of US$28 million at 31stDecember 2005. Certain of Dairy Farm's properties acquired as part of the increasedshareholding in PT Hero Supermarket, and a property in Hong Kong were classifiedas held for sale. With the exception of the property in Hong Kong and one retailproperty in Indonesia with carrying values of US$2 million and US$1 millionrespectively, all other properties were sold during the year. Mandarin Oriental's interest in The Mark, New York was classified as held forsale. At 31st December 2005, total assets and total liabilities amounted toUS$80 million and US$14 million respectively. The sale was completed in February2006 for a consideration of US$150 million (refer note 12). Jardine Cycle & Carriage's interest in MCL Land, which comprised total assets ofUS$578 million and total liabilities of US$182 million at 31st December 2005,was classified as held for sale. The sale, which was effected through adistribution in specie by Jardine Cycle & Carriage to its shareholders and theacceptance of Hongkong Land's tender offer by Jardine Strategic in respect ofits interest in MCL Land received through the dividend in specie, was completedin January 2006 (refer note 12). *Included bank balances and other liquid funds of US$26 million. 8. Shareholders' Funds 2005 2004 US$m US$m ---------------------------- At 1st January 3,639 2,540 Effect of adopting IFRS 3 - 208 --------- --------- 3,639 2,748 Recognized income and expense attributable to shareholders 1,421 1,178 Dividends (note 9) (141) (120) Employee share option schemes - value of employee services 7 1 - exercise of share options 13 15 Scrip issued in lieu of dividends 167 30 Repurchase of shares - (204) Equity component of convertible bonds issued by an associate 22 - Change in attributable interests (4) (2) Increase in own shares held (104) (7) --------- --------- At 31st December 5,020 3,639 --------- --------- 9. Dividends 2005 2004 US$m US$m ---------------------------- Final dividend in respect of 2004 of USc31.50 (2003: USc25.20) per share 187 152 Interim dividend in respect of 2005 of USc9.35 (2004: USc8.50) per share 56 51 --------- --------- 243 203 Less Company's share of dividends paid on the shares held by subsidiary undertakings (102) (83) --------- --------- 141 120 --------- --------- A final dividend in respect of 2005 of USc35.65 (2004: USc31.50) per shareamounting to a total of US$216 million (2004: US$187 million) is proposed by theBoard. The dividend proposed will not be accounted for until it has beenapproved at the Annual General Meeting. The net amount after deducting theCompany's share of the dividends payable on the shares held by subsidiaryundertakings of US$91 million (2004: US$78 million) will be accounted for as anappropriation of revenue reserves in the year ending 31st December 2006. 10. Notes to Consolidated Cash Flow Statement 2005 Book Fair value Fair value adjustments value(a) Purchase of Astra US$m US$m US$m ---------------------------------------------------- Intangible assets 69 591 660 Tangible assets 822 - 822 Investment properties 20 - 20 Plantations 359 - 359 Associates and joint ventures 472 467 939 Other investments 24 - 24 Financing and other debtors 1,183 - 1,183 Deferred tax assets 129 (91) 38 Current assets 2,778 - 2,778 Long-term borrowings (1,260) - (1,260) Deferred tax liabilities (170) (107) (277) Pension liabilities (38) - (38) Non-current provisions (3) - (3) Other non-current liabilities (69) - (69) Current liabilities (2,172) - (2,172) Minority interests (386) (79) (465) --------- ---------- --------- Net assets 1,758 781 2,539 --------- ---------- Adjustment for minority interests (1,267) --------- Net assets acquired 1,272 Goodwill 66 --------- Total consideration 1,338 Adjustment for carrying value of associates and joint ventures (889) Adjustment to fair values relating to previously held interests (315) Cash and cash equivalents of Astra acquired (454) --------- Net cash inflow (320) --------- During the year, Jardine Cycle & Carriage acquired an additional 2.9% interestin Astra increasing its holding to 50.1%. Fair value adjustments were determinedbased on provisional fair values of Astra's identifiable assets and liabilitiesat the date on which the Group obtained control. Goodwill represented the excessof the cost of acquisition over the fair value of the share of the netidentifiable assets acquired, and is attributable to the profitability of theacquired business after the acquisition. 2005 2004 Book Fair value Fair Fair(b) Purchase of other value adjustments value value subsidiary undertakings US$m US$m US$m US$m ----------------------------------------------------------------------- Intangible assets 14 13 27 - Tangible assets 47 - 47 3 Deferred tax assets 5 - 5 - Current assets 98 1 99 7 Long-term borrowings (9) - (9) - Deferred tax liabilities (4) (4) (8) - Pension liabilities (9) - (9) - Current liabilities (85) - (85) (3) Minority interests 13 - 13 1 -------- -------- -------- -------- Net assets 70 10 80 8 -------- -------- Adjustment for minority interests (27) - -------- -------- Net assets acquired 53 8 Goodwill 39 18 -------- -------- Total consideration 92 26 Adjustment for deferred consideration and carrying value of associates and joint ventures (23) - Adjustment to fair values relating to previously held interests (4) - Cash and cash equivalents of subsidiary undertakings acquired (5) - -------- -------- Net cash outflow 60 26 Payment of deferred consideration - 1 Purchase of shares in Jardine Strategic - 50 Purchase of shares in Dairy Farm - 40 Purchase of shares in Jardine Cycle & Carriage 41 52 -------- -------- 101 169 -------- -------- Net cash outflow in 2005 of US$60 million included US$39 million for acquisitionof an additional 32.3% interest in PT Hero Supermarket in Dairy Farm, and US$7million for an additional 30% interest in Republic Auto and US$8 million for anadditional 30% interest in Century Gardens in Jardine Cycle & Carriage. Net cash outflow in 2004 of US$26 million included US$10 million for acquisitionof dealerships in the United Kingdom in Jardine Motors Group and US$16 millionfor store acquisitions in Dairy Farm. (c) Purchase of associates and joint ventures in 2005 included US$21 million for increased interest in Landmark Land and Properties in Jardine Cycle & Carriage,US$15 million for Astra's interest in PT Marga, US$71 million for increasedinterest in Hongkong Land and US$187 million for a 20% interest in RothschildsContinuation Holdings in Jardine Strategic. Purchase of associates and jointventures in 2004 included US$55 million for increased interest in Hongkong Landin Jardine Strategic. 2005 2004(d) Sale of subsidiary undertakings US$m US$m ------------------------------- Intangible assets 4 1 Tangible assets - 76 Deferred tax assets - 3 Current assets 167 139 Long-term borrowings - (2) Deferred tax liabilities - (6) Pension liabilities - (2) Current liabilities (57) (66) Minority interests - (4) --------- --------- Net assets disposed of 114 139 Cumulative exchange translation differences - 5 Profit on disposal 25 88 --------- --------- Sale proceeds 139 232 Adjustment for deferred consideration - 4 Tax and other expenses paid on disposals (7) (23) Cash and cash equivalents of subsidiary undertakings disposed of (52) (3) --------- --------- Net cash inflow 80 210 --------- --------- Sale proceeds in 2005 of US$139 million included US$29 million from JardinePacific's sale of its interest in EastPoint and US$96 million from Dairy Farm'ssale of its interest in Hartanah Progresif, a property-owning subsidiary Sale proceeds in 2004 of US$232 million included US$53 million from sale ofCaterpillar dealerships in Hawaii and Taiwan, US$40 million from sale ofHawaiian restaurant operations and US$13 million from sale of United Terminal inJardine Pacific, US$53 million from sale of United States motor operations inJardine Motors Group, US$20 million from sale of Hong Kong Ice and Cold Storagein Dairy Farm, and US$48 million from sale of Jardine Cycle & Carriage's NewZealand motor operations. (e) Sale of associates and joint ventures in 2005 included US$59 million fromsale of Pacific Finance in Jardine Pacific and US$97 million from sale of KahalaMandarin Oriental in Mandarin Oriental. Sale of associates and joint ventures in2004 included US$30 million from sale of Polar Motor Group in Jardine MotorsGroup, US$7 million from repayment of shareholders' loan by Mandarin Oriental,Kuala Lumpur in Mandarin Oriental, and US$6 million from sale of Jardine Cycle &Carriage's remaining Australian motor operations. (f) Sale of other investments in 2005 included US$36 million from sale of sharesin EON Capital in Jardine Strategic. Sale of other investments in 2004 includedUS$13 million from sale of corporate investments in Mandarin Oriental, US$20million from sale of Hap Seng Consolidated in Jardine Strategic and US$24million from sale of other corporate investments. 11. Capital Commitments and Contingent Liabilities 2005 2004 US$m US$m ------------------------------- Capital commitments 310 197 --------- --------- Contingent liabilities Guarantees in respect of facilities made available to associates and joint ventures 78 79 --------- --------- Guarantees in respect of facilities made available to associates and jointventures are stated at their total respective contracted amounts. It is probablethat the Group has no obligations under such guarantees. Various Group companies are involved in litigation arising in the ordinarycourse of their respective businesses. Having reviewed outstanding claims andtaking into account legal advice received, the Directors are of the opinion thatadequate provisions have been made in the financial statements. 12. Post Balance Sheet Events (a) In December 2005, Jardine Cycle & Carriage announced that its shareholdersapproved the distribution of the company's 65.6% interest in MCL Land by way ofa dividend in specie. At the same time, Hongkong Land announced a voluntaryconditional cash offer for all the ordinary stock units in MCL Land. JardineStrategic undertook to accept the offer by Hongkong Land in respect of the 40.9%interest in MCL Land that it would receive through the dividend in specie. AsHongkong Land already held a 9.5% interest in MCL Land at 31st December 2005 andthe offer would become unconditional upon the acceptance by Jardine Strategic inrespect of its holding, MCL Land was classified as a disposal group held forsale at 31st December 2005. In January 2006, Jardine Strategic disposed of its interest in MCL Land toHongkong Land for US$163 million. Hongkong Land's offer closed on 17th February2006 and resulted in Hongkong Land holding 77.4% in MCL Land. (b) In December 2005, Mandarin Oriental announced that it had entered into anagreement to sell its interest in The Mark, New York for US$150 million. Thesale was completed in February 2006 resulting in a profit after tax ofapproximately US$35 million. The final dividend of USc35.65 per share will be payable on 21st June 2006,subject to approval at the Annual General Meeting to be held on 15th June 2006,to shareholders on the register of members at the close of business on 21stApril 2006, and will be available in cash with a scrip alternative. Theex-dividend date will be on 19th April 2006, and the share registers will beclosed from 24th to 28th April 2006, inclusive. Shareholders will receive theircash dividends in United States Dollars, unless they are registered on theJersey branch register where they will have the option to elect for Sterling.These shareholders may make new currency elections by notifying the UnitedKingdom transfer agent in writing by 2nd June 2006. The Sterling equivalent ofdividends declared in United States Dollars will be calculated by reference to arate prevailing on 7th June 2006. Shareholders holding their shares through TheCentral Depository (Pte) Limited ('CDP') in Singapore will receive United StatesDollars unless they elect, through CDP, to receive Singapore Dollars or thescrip alternative. For further information, please contact: Jardine Matheson LimitedJames Riley (852) 2843 8229 Matheson & Co LimitedMartin Henderson (44) 20 7816 8135 GolinHarrisKennes Young (852) 2501 7987 Weber Shandwick Square MileRichard Hews/Helen Thomas (44) 20 7067 0700 This and other Group announcements can be accessed through the Internet at'www.jardines.com'. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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