Final Results

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

Jardine Strategic Holdings Limited

2012 Preliminary Announcement of Results

Highlights

·; Underlying profits* maintained, and full-year dividend up 7%

·; Record Astra earnings mitigated by decline in rupiah

·; Good trading performance in Hongkong Land

·; Jardine Matheson affected by weak motor earnings in mainland China

·; Dairy Farm's earnings increase offset by one-off charge

"Despite the economic environment remaining uncertain, most of the Group's businesses have continued to trade well. As the Group's finances remain robust and our businesses are pursuing diverse development programmes, the outlook for 2013 is satisfactory."

Sir Henry Keswick, Chairman

8th March 2013

Results

Jardine Strategic Holdings Limited

Preliminary Announcement of Results

For The Year Ended 31st December 2012

Overview

There were good trading performances in a number of the Group companies in 2012 despite the moderating effects on the region of global economic uncertainty. Earnings growth was, however, held back principally by difficult market conditions for Jardine Matheson's motors operation in mainland China, a one-off charge in Dairy Farm and currency weakness reducing the reported contribution from Astra.

Performance

The Group's revenue for 2012, including 100% of revenue from Jardine Matheson, associates and joint ventures, was US$60.5 billion, compared with US$57.3 billion in 2011. Jardine Strategic achieved an underlying profit before tax for the year of US$4,597 million, little changed from the prior year. Underlying profit attributable to shareholders was also in line with 2011 at US$1,587 million, while underlying earnings per share were 1% higher at US$2.58.

The profit attributable to shareholders for the year was US$1,839 million, with the main non-trading item being a modest increase in the value of Hongkong Land's investment property portfolio, and compares with US$3,943 million in 2011 which benefited from a more significant increase in valuations. Shareholders' funds were 9% higher at US$21.3 billion.

The Group's consistent and growing profit generation, cash flows and retained earnings of recent years have enabled it to combine high levels of capital expenditure with low levels of debt. Net debt excluding financial services companies at the year end was US$3.1 billion, or 7% of consolidated total equity.

In light of the Group's strong liquidity, the Board is recommending a final dividend of US¢17.00 per share, which represents an overall increase of 7% for the full year.

Business Developments

Within Jardine Matheson's directly held businesses, Jardine Pacific produced mixed results leading to a decline in earnings. While some good performances are expected in the coming year, the results from its air cargo handling business will be impacted by the long planned move of a major customer to its own dedicated facility in Hong Kong. Jardine Motors' results were severely affected by continued challenges in its Mercedes-Benz sales operations in mainland China where margins came under intense pressure, although the group remains confident in the potential for this business. Jardine Lloyd Thompson recorded notable organic growth, further enhancing operational efficiency and increasing its returns from the growing economies of Asia and Latin America.

Hongkong Land produced a good result in 2012 as rental reversions in its prime Hong Kong Central office portfolio remained positive in a market supported by a lack of new supply. Earnings from residential development benefited from the completion of two Singapore projects and additional unit sales in Hong Kong. In mainland China, the group's commercial developments in Beijing progressed well, as did its residential projects, and Hongkong Land has entered the Indonesian residential market with a joint venture to develop a prime residential community in Jakarta.

Dairy Farm delivered healthy increases in like-for-like sales in most of its major businesses during the year, with particularly good performances in Hong Kong and Indonesia. Complementing its continued organic growth, Dairy Farm entered the new markets of Cambodia and the Philippines through acquisitions. Its contribution was, however, held back by the reversal of US$59 million supplier income in Malaysia incorrectly accrued in prior years. The group's focus is on strengthening the appeal of its brands to consumers across Asia and it is investing in supply chain management to drive productivity gains and support further growth.

Despite challenging market conditions, Mandarin Oriental was able to produce an improved underlying profit during the year. Its development programme made progress as management contracts for three new hotels under development were announced, and the group assumed management of a luxury hotel in Atlanta in the United States. Mandarin Oriental, Guangzhou was opened in January 2013, and further openings in Shanghai and Taipei are scheduled for later in the year. Mandarin Oriental has also recently acquired the freehold of its Paris hotel.

Jardine Cycle & Carriage's motor operations faced difficult trading conditions in a number of markets in Southeast Asia in 2012, although Astra's contribution was maintained despite a weakening Indonesian rupiah. Astra produced another record result in its reporting currency as it benefited from a strong Indonesian economy supported by robust domestic demand. Good performances were achieved by its motor car and financial services operations, but motorcycle sales declined in a softer market. Income from the heavy equipment and mining sector was little changed, with lower equipment sales being substantially offset by successful contract coal mining results. Astra remains active in new business development in areas such as the production of a new 'green' car, increased coal mine ownership, further infrastructure investments and an electronic banking project. Its associate, Bank Permata, recently completed a US$212 million rights issue to support future business expansion.

People

Ben Keswick took over as Managing Director on 1st April 2012, with Anthony Nightingale having stepped down from the role and now a non-executive Director. Adam Keswick also joined the Board on 1st April.

Outlook

Despite the economic environment remaining uncertain, most of the Group's businesses have continued to trade well. As the Group's finances remain robust and our businesses are pursuing diverse development programmes, the outlook for 2013 is satisfactory.

Sir Henry Keswick

Chairman

8th March 2013

Operating Review

Business Model

Jardine Strategic is a holding company within the Jardine Matheson Group which takes long-term strategic investments in multinational businesses and other high quality companies with existing or potential links to the Group. The Company's investments are focused principally on Greater China and Southeast Asia, although some of its operations have a more global reach. The Group companies are leaders in the fields of motor vehicles and related activities, property investment and development, retailing and restaurants, engineering and construction, transport services, luxury hotels, financial services, heavy equipment, mining and agribusiness.

The Group's representation in this broad mix of business sectors and the spread between cash generating activities and long-term property assets enables it to focus its investment in high growth markets while spreading the risk that might otherwise be associated with its geographic concentration. This strategy, combined with a strong balance sheet, is designed to achieve long-term growth in both earnings and net asset value.

Jardine Matheson

Jardine Matheson achieved an underlying profit before tax for the year of US$4,762 million, little changed from 2011. Its underlying profit attributable to shareholders was modestly down at US$1,479 million, while underlying earnings per share were 2% lower at US$4.06. Jardine Matheson's profit attributable to shareholders was US$1,688 million, compared with US$3,449 million in 2011, primarily due to lower increases in investment property values.

·; Jardine Pacific

Jardine Pacific's underlying profit of US$153 million was 15% lower than in 2011 reflecting the mixed results within its businesses. With a gain of US$10 million, mainly arising on the revaluation of investment properties, the profit attributable to shareholders was US$163 million, compared with US$216 million in 2011. Shareholders' funds were US$613 million at the end of 2012 and the underlying return on average shareholders' funds was 25%. The group's engineering and construction interests did well with improved earnings at Jardine Schindler, Jardine Engineering Corporation and Gammon, where the order book rose to US$3.5 billion. The aviation and shipping interests performed less well as markets remained difficult. Jardine Restaurants' operation in Hong Kong achieved good higher profits, but this was offset by reduced earnings in Taiwan. Jardine OneSolution recorded lower revenue and profit.

·; Jardine Motors

Jardine Motors recorded an underlying profit of US$18 million, down 71%. The fall in earnings was due to a loss in mainland China following a severe decline in sales and margins in Zung Fu's business. A revised trading approach by Mercedes, as well as plans to release four new models including the new S Class towards the end of 2013, should provide a more positive trading environment. Accordingly, despite the current setback, Jardine Motors remains confident in the potential for its business in Southern China. Zung Fu produced a modest increase in profit in Hong Kong and Macau where it achieved higher deliveries of Mercedes-Benz passenger cars and saw a good performance by Hyundai. While the market in the United Kingdom continued to be difficult, Jardine Motors' dealerships were able to achieve increased vehicle sales and improved results.

·; Jardine Lloyd Thompson

Jardine Lloyd Thompson's total revenue for the year was US$1,401 million, an increase of 7% in its reporting currency. Underlying profit before tax and exceptional items was US$257 million, a reported increase of 10%, while underlying diluted earnings per share rose by 11%. This good performance was set against generally poor trading conditions. Jardine Lloyd Thompson's Latin American and Asian operations, however, again achieved strong growth and together now generate 18% of total revenue, not including revenues generated for the London market. The Risk & Insurance group, comprising the worldwide specialist insurance, wholesale and reinsurance broking operations, achieved a 6% increase in underlying trading profit in its reporting currency. The Employee Benefits business also enjoyed a successful year, producing a trading profit up 8% in its reporting currency.

Hongkong Land

Hongkong Land performed well during the year despite the effects on the region of the prevailing global economic uncertainty, achieving an 11% increase in underlying profit at US$777 million. Taking into account the increase in the value of its investment properties, profit attributable to shareholders for 2012 was US$1,439 million, compared with US$5,306 million in 2011, while net asset value per share rose from US$10.58 to US$11.11. The group's financial position remained strong with year-end net debt of US$3.3 billion and gearing at 13%.

Leasing demand was relatively weak in both Hong Kong and Singapore, although the effects were tempered by the group's limited vacancy. In the Hong Kong Central office portfolio rental reversions continued to be generally positive as vacancy was only 3.4% at the year end, while the retail portfolio remained fully let. In Singapore, the office portfolio was fully leased, with the exception of the third tower at Marina Bay Financial Centre, which was almost 80% let by the end of the year. The group's 50%-owned office portfolio in Jakarta was 94% let.

In the residential sector, there was a further contribution from unit sales in Hong Kong and Macau. In Singapore, two fully pre-sold projects were completed, and an additional development site was acquired in August 2012 for approximately US$300 million. In mainland China, the group benefited from continuing sales completions at Maple Place in Beijing and at its 50%-owned joint venture, Bamboo Grove, in Chongqing. Sales continued at projects in Chongqing, Chengdu and Shenyang.

Dairy Farm

Dairy Farm has continued to trade well despite increased competition and a more difficult economic environment in certain markets. Sales, including 100% of associates and joint ventures, increased by 10% to US$11.5 billion in 2012. Underlying profit was US$447 million compared with US$474 million in 2011. The 2012 result reflects the reversal of US$59 million relating to the incorrect recognition of supplier income in its Malaysian operations over the past few years. Excluding the effects of the reversed supplier income, underlying profit rose from US$450 million in 2011 to US$506 million in 2012, an increase of 13%. The reported profit attributable to shareholders for 2012 was US$450 million. Dairy Farm's financial position remains healthy with net cash at the end of 2012 of US$521 million.

In Hong Kong, Mannings health and beauty stores delivered another impressive result and Wellcome supermarkets traded well. IKEA in both Hong Kong and Taiwan also reported good growth. The supermarket and hypermarket businesses in Malaysia faced challenging market conditions, while the Guardian health and beauty chain traded satisfactorily. All operations continued to perform well in Indonesia. The Singapore businesses were flat in the face of increased operating costs and weaker economic conditions. Restaurant associate, Maxim's, delivered another strong set of results. There was satisfactory trading in the group's new businesses in Cambodia and the Philippines.

The construction of a fifth IKEA store in Taichung, Taiwan is progressing well and it is expected to open later in 2013. PT Hero has been awarded the franchise rights to operate IKEA stores in Indonesia, and the first store is planned to open in 2014. Maxim's continued to expand its operations in Hong Kong and in mainland China, and has recently opened its first Starbucks store in Vietnam under a new franchise agreement.

Mandarin Oriental

Mandarin Oriental's underlying profit in 2012 was up 20% at US$71 million as a reduction in corporate business was offset by resilient demand from the leisure sector leading to increased average rates. Profit attributable to shareholders was US$72 million, compared to US$67 million in the prior year.

The group's hotels in Hong Kong and Singapore continued to perform well, while its properties in both Tokyo and Bangkok showed some recovery from the effects of natural disasters in 2011. Improvements were seen in most hotels in Europe. Progress was made in Paris as the hotel continued to stabilize, and the freehold rights of the property were recently acquired for US$389 million. Individual hotel performances in the United States varied according to local market conditions.

The group now operates 28 hotels and has a further 16 hotels under development. Together these represent over 11,000 rooms in 27 countries. In addition, it operates or has under development 14 Residences at Mandarin Oriental connected to its properties.

Jardine Cycle & Carriage

Jardine Cycle & Carriage produced a stable result in 2012, with underlying profit largely unchanged from 2011 at US$1,016 million. Profit attributable to shareholders was 4% lower at US$987 million after accounting for non-trading items. Astra's contribution to underlying profit at US$1,017 million was only slightly up on the previous year as currency movements offset much of its earnings growth achieved in rupiah. Strong results in its motor car and financial services businesses more than compensated for lower earnings from its heavy equipment and motorcycle operations.

The contribution from the group's other motor interests was 5% lower at US$58 million. In Indonesia, Tunas Ridean saw improved contributions from its motor vehicle, rental and finance activities, offsetting a decline in its motorcycle business. In the face of a challenging market in Singapore, the group's operations performed satisfactorily as the Mercedes-Benz brand proved to be resilient. In Malaysia, Cycle & Carriage Bintang had a disappointing year as the intense competition in the premium car segment led to significant margin erosion. In Vietnam, Truong Hai Auto Corporation's results suffered from higher financing costs and a sharp fall in the automotive market due to poor consumer sentiment in a weak economy.

Astra

Astra produced record results with net profit under Indonesian accounting standards of Rp19.4 trillion, up 9%, equivalent to US$2,062 million. Improved contributions from its motor car and financial services businesses were partially offset by lower earnings in its heavy equipment and motorcycle businesses.

Net income from the group's automotive businesses grew by 15% to Rp9.5 trillion. Car sales rose by 25% to 605,000 units with a stable market share of 54%. In more difficult market conditions, Astra Honda Motor's sales declined by 4% to 4.1 million units, although its market share increased from 53% to 58%. Astra Otoparts, the group's component manufacturing business, reported earnings up 5%.

The amount financed through Astra's automotive-focused consumer finance operations grew by 2% to US$5.3 billion, while the heavy equipment-focused finance operations were 2% lower at US$755 million. Group insurance company, Asuransi Astra Buana, recorded higher earnings with improved premiums partly offset by higher commissions and claims expenses. Astra's 45%-held joint venture, Bank Permata, reported net income up 18% at US$145 million, with growth in net interest income and fee-based income.

United Tractors' sales of Komatsu heavy equipment were 27% lower due to reduced demand, although the impact was partly mitigated by strong spare parts and service revenue growth. Contract coal mining subsidiary, Pamapersada Nusantara, reported a 25% improvement in net revenue as contract coal production increased 9% to 94 million tonnes and contract overburden removal rose 7% to 855 million cubic metres. Astra Agro Lestari's increased palm oil production offset the effects of lower prices, but higher production costs and operating expenses left net income little changed.

Net income from infrastructure and logistics rose 13%, and if the reversal of a tax provision in 2011 is excluded, the net income rose 35%. The development of toll road interests continued, and there were increased sales volumes in the group's western Jakarta water utility system. TRAC car rentals produced an increase in vehicles under contract, while in information technology Astra Graphia is pursuing new business opportunities.

Ben Keswick

Managing Director

8th March 2013