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

2011 Preliminary Announcement of Results

Highlights

·; Underlying earnings per share* up 10%

·; Outstanding performance by Astra

·; Hongkong Land's property portfolio revalued; iconic Beijing site acquired

·; Strong contribution from Dairy Farm

"In 2012 Hongkong Land is expected to make a lower contribution due to a reduced number of residential completions, while uncertain global economic conditions have the potential to impact some of the Group's markets in Asia. The Group has, however, made a satisfactory start to the year, and with an ungeared portfolio of listed securities valued at over US$40 billion it is well placed to take advantage of any investment opportunities that may arise."

Sir Henry Keswick, Chairman

2nd March 2012

Results

The final dividend of US¢16.00 per share will be payable on 16th May 2012, subject to approval at the Annual General Meeting to be held on 10th May 2012, to shareholders on the register of members at the close of business on 16th March 2012 and will be available in cash with a scrip alternative. The ex-dividend date will be on 14th March 2012, and the share registers will be closed from 19th to 23rd March 2012, inclusive.

Jardine Strategic Holdings Limited

Preliminary Announcement of Results

For The Year Ended 31st December 2011

Overview

Conditions in the Group's principal Asian markets remained relatively strong during 2011, enabling the Group to perform well, but the region is not immune to global economic pressures and some of its businesses faced an increasingly challenging environment.

Performance

The Group's revenue for 2011, including 100% of revenue from Jardine Matheson, associates and joint ventures, was US$57 billion, compared with US$47 billion in 2010. Jardine Strategic achieved an underlying profit before tax for the year of US$4,578 million, an increase of 14%. Underlying profit attributable to shareholders was 10% higher at US$1,583 million while underlying earnings per share were 10% higher at US$2.55.

Within Jardine Matheson's interests, Jardine Pacific saw good performances across its operations, although there were some areas of weakness, while Jardine Motors experienced a decline in its earnings. Jardine Lloyd Thompson continued to make progress and its contribution was enhanced by the group's increased shareholding.

Hongkong Land's commercial property activities did well in 2011, but its results were lower following a reduced contribution from residential developments. Dairy Farm achieved higher earnings across most of its banners. Mandarin Oriental's profits continued to recover following improvements in occupancy and room rates. Astra achieved record results as its businesses performed well in a strong trading environment, enhanced on consolidation by the strengthened Indonesian rupiah.

Non-trading items in 2011 primarily consisted of the Group's US$2,336 million share of the increase in the valuation of investment properties, producing a profit attributable to shareholders of US$3,943 million, compared with US$3,535 million in 2010. Shareholders' funds were 20% higher at US$20 billion.

The Group continues to benefit from robust operating cash flows, ample committed facilities and access to the capital markets. This has provided a sound financial base on which to support investment in maintaining and expanding its leading market positions. Total capital investment across the Group in 2011 exceeded US$4.9 billion. The consolidated net debt at the end of 2011, excluding financial services companies, was US$1.9 billion, representing gearing of 5%, which compares to US$2.3 billion at the end of 2010 and gearing of 7%.

The Board is recommending a final dividend of US¢16.00 per share, which represents an overall increase of 7% for the full year.

Business Developments

Within Jardine Matheson, Jardine Pacific produced a satisfactory result despite the more difficult trading conditions experienced by a number of its businesses. JOS benefited from the successful acquisition of an IT distribution business early in the year, and the group's restaurant operations were expanded. Gammon continued to win major infrastructure contracts thereby maintaining its healthy order book. Jardine Motors' operation in Hong Kong produced a good result, but there were disappointing performances in Southern China and the United Kingdom. Jardine Lloyd Thompson, in which Jardine Matheson has increased its shareholding to just over 40%, continued to perform well and its business transformation programme is delivering increased savings.

Hongkong Land's office and retail portfolio in Hong Kong produced strong results and its growing Singapore portfolio made an increased contribution. This improvement was, however, offset by lower profits from its residential business due to the timing of completions, leading to a reduced underlying profit for 2011. Several new development sites were secured during the year, including an iconic commercial site in Wangfujing in the heart of Beijing, residential sites in Chongqing and Singapore, and a small portfolio in Cambodia.

Dairy Farm continued to generate profitable growth during 2011 as good increases in comparable store sales were complemented by organic expansion from new store openings.In the more mature markets of Hong Kong, Singapore and Taiwan, the group is concentrating on improving operational efficiencies and enhancing store attractiveness, while in Indonesia and Malaysia significant funds are being invested in enlarging the network of existing formats. Acquisition opportunities are also being sought in existing and new markets in the Region.

Mandarin Oriental benefited from increased demand throughout 2011 which led to improved profitability across most of the group's portfolio, particularly in Asia and Europe. Its new Paris hotel opened to great acclaim in June, and the group's development activities continue with a new hotel in Guangzhou scheduled to open in late 2012. Mandarin Oriental currently has 27 hotels in operation and 15 under development, all of which are to be management contracts.

Astra's businesses performed excellently in 2011 with good earnings growth from its automotive, financial services, heavy equipment and mining activities, helped in part by the continuing strength of the Indonesian economy, which is transforming the country's global standing. Progress was made in the development of the group's operations with a significant expansion of the manufacturing capacity in both its motor car and motorcycle plants, the addition of a further five coal mining concessions with reserves in excess of 250 million tonnes, and the acquisition of a new toll road project near Surabaya.

People

R.C. Kwok retired from the Board in May 2011 and I would like to thank him for his significant contribution to the Group. Anthony Nightingale is stepping down as Managing Director on 31st March 2012 after six years in the role. Anthony has had a long and distinguished career with the Group and we are pleased that he will remain as a non-executive Director. Joining the Board on 1st April are Ben Keswick, who will take over as Managing Director, and Adam Keswick.

Outlook

In 2012 Hongkong Land is expected to make a lower contribution due to a reduced number of residential completions, while uncertain global economic conditions have the potential to impact some of the Group's markets in Asia. The Group has, however, made a satisfactory start to the year, and with an ungeared portfolio of listed securities valued at over US$40 billion it is well placed to take advantage of any investment opportunities that may arise.

Sir Henry Keswick

Chairman

2nd March 2012

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$4,784 million, an increase of 13%. Its underlying profit attributable to shareholders was up 10% at US$1,495 million, while underlying earnings per share were up 9% at US$4.13. Jardine Matheson's profit attributable to shareholders was higher at US$3,449 million primarily due to increased investment property values.

·; Jardine Pacific

Jardine Pacific's underlying profit rose 15% to US$179 million in 2011. A US$23 million gain arising on the revaluation of investment properties, together with gains from property disposals, contributed to a profit attributable to shareholders of US$216 million, up 19%. Shareholders' funds were US$595 million at the end of 2011, and the underlying return on average shareholders' funds was 30%.

Gammon's earnings were maintained, despite absorbing losses from two difficult projects, and its order book stands at US$3 billion. Both Jardine Schindler and JEC achieved good profit increases as they developed their businesses in the Region. Hong Kong Air Cargo Terminals' earnings fell because of reduced cargo throughput, but its contribution was broadly maintained due to Jardine Pacific's increased shareholding. Jardine Aviation Services' profit was little changed, but Jardine Shipping Services suffered from a decline in freight rates and volumes. Jardine Restaurants' Pizza Hut operations in Hong Kong and Taiwan achieved growth in both sales and profits. JOS recorded strong revenue and earnings growth, with an excellent first year's contribution from SiS, acquired in January 2011.

·; Jardine Motors

Jardine Motors recorded an underlying profit of US$61 million in 2011, a reduction of 29% due to the poor trading conditions in the United Kingdom and margin erosion in mainland China. The 2010 comparative also included a gain of US$6 million from property disposals. Including non-trading items, the profit attributable to shareholders was US$68 million.

Zung Fu produced a fine performance in Hong Kong and Macau with higher deliveries of Mercedes-Benz passenger cars. Despite good volume growth in mainland China, Zung Fu's results were negatively impacted by lower margins. Zung Fu now has 24 outlets in Southern China with a further five under development. The group's dealerships in the United Kingdom continued to face weak demand with declining new vehicles sales and lower margins. 

·; Jardine Lloyd Thompson

Jardine Lloyd Thompson performed well in 2011 in a challenging trading environment as it benefited from further organic growth and contributions from acquisitions. Total revenue was US$1,315 million and profit before exceptional items and tax was US$237 million, increases of 10% and 13%, respectively, in the company's reporting currency. Profit attributable to shareholders was US$143 million, compared with US$140 million in 2010.

Jardine Lloyd Thompson's Risk & Insurance group, comprising its worldwide retail operations and its specialist, insurance, wholesale and reinsurance broking businesses, produced increases of 11% in revenue and 8% in underlying trading profit. Its Latin American and Asian activities once again achieved strong growth. The Employee Benefits business also had a successful year, with revenue up 5% and a trading margin rising from 17% to 19%. 

Hongkong Land

Hongkong Land's commercial property interests achieved good growth in 2011, although profits from its residential development activities were lower due to the timing of completions. As a result, the company reported a 13% decline in underlying profit for the year of US$703 million. Taking into account the increase in the value of its investment properties, profit attributable to shareholders for 2011 was US$5,306 million, compared with US$4,739 million in 2010, while net asset value per share rose 22%.

The Hong Kong commercial property market remained firm in 2011 enabling Hongkong Land to achieve positive rental reversions. At the year end its office vacancy stood at 2% and its luxury retail portfolio was fully let. In Singapore, where conditions were stable, the group benefited from a first full year's rental income from the Marina Bay Financial Centre joint venture. A third tower in the project, which will complete this year, is 65% pre-let.  In Beijing, an iconic site has been secured in Wangfujing which will be developed as a premier retail centre including a small luxury hotel. In Cambodia, a property portfolio has been acquired that includes two future development sites in Phnom Penh.

In the residential sector, one project was completed in Singapore, compared with three in 2010, and three new projects were successfully launched for sale enabling a US$44 million reversal of writedowns. There were also contributions from developments in Hong Kong and Macau. In mainland China, development profits were earned in Beijing and Chongqing, where an additional site was secured in December 2011.  Mid-year sales launches in Chongqing and Shenyang were well received, but sales volumes in general have decreased significantlyin response to government measures.

Dairy Farm

Stable trading environments in Dairy Farm's major markets across Asia led to strong sales and profits growth in 2011. Sales, including 100% of associates, increased by 15% to US$10.4 billion, while underlying profit for the year was up 16% at US$474 million. Favourable exchange movements enhanced both sales and profit by 4%. The profit attributable to shareholders, which rose 18% to US$484 million, included a US$10 million non-trading gain arising from the disposal by Maxim's of its remaining interest in Starbucks in mainland China. The group had net cash of US$466 million at the year end.

There was a strong performance from the group's operations in North Asia with profit growth exceeding that of sales. Mannings health and beauty stores produced another excellent result in Hong Kong, while IKEA traded well in both Hong Kong and Taiwan. A good result from East Asia benefited from another fine contribution from the Guardian health and beauty chain in Malaysia and particularly pleasing performances from hypermarkets and supermarkets in Indonesia. A steady performance was seen in South Asia. Restaurant associate, Maxim's, made an excellent contribution, based on strong improvements in like-for-like sales, despite facing increases in both food and wage costs.

Dairy Farm is seeking to expand its operations through acquisitions, and in February 2012, agreed to acquire a 70% equity interest in a supermarket chain in Cambodia. It is also continuing to invest in the development of its business with the modernization and standardization of its retail processes and systems, the improvement of its supply chain management, and the expansion of its offering of private label products.

Mandarin Oriental

Increased demand led to improved performances for Mandarin Oriental, particularly in Asia and Europe. Underlying profit for 2011 was up 33% at US$59 million. The result included US$16 million in branding fees from The Residences at Mandarin Oriental, London which helped to offset the impact on earnings of reduced occupancy in Tokyo and pre-opening costs in Paris. Profit attributable to shareholders of US$67 million included US$8 million of net non-trading profit, being primarily a gain of some US$10 million representing the value of a long-term leasehold interest in part of The Residences in London. There were no non-trading items in 2010.

In Asia, the group's hotels in Hong Kong and Singapore traded well, but Bangkok was affected by the floods in Thailand and Tokyo suffered low occupancy for a number of months following the earthquake and tsunami. In Europe, there were particularly strong performances in London and Munich, while Mandarin Oriental, Paris opened in June 2011 to considerable acclaim. In The Americas, business levels improved across the portfolio, although the rate of earnings growth was lower than in the group's other regions. Mandarin Oriental will open in Guangzhou in the second half of 2012, followed in 2013 by hotels in Taipei, Milan and Shanghai. The group now has 27 hotels in operation and a further 15 under development, including a recently announced property in Bodrum, Turkey due to open in 2014.

Jardine Cycle & Carriage

Jardine Cycle & Carriage produced another excellent result in 2011 with underlying profit up 25% at US$1,019 million. Its profit attributable to shareholders of US$1,030 million included a non-trading gain of US$11 million due to a fair value gain on revaluation of Astra's oil palm plantations. Astra produced improved results in all its major businesses, and its contribution to the underlying profit of Jardine Cycle & Carriage was up 27% to US$1,011 million, benefiting in part from a stronger rupiah on translation.

The contribution from the group's other motor interests rose 10% to US$62 million. The results from Singapore improved reflecting the strength of the Mercedes-Benz brand at a time when government quotas reduced the size of the market. Tunas Ridean had a good year as it benefited from the strong consumer demand in Indonesia. In Malaysia, however, Cycle & Carriage Bintang's earnings were flat in the face of competition. In Vietnam, while Truong Hai Auto Corporation achieved a 26% increase in unit sales, its profit was lower due to reduced margins as well as higher finance and operating costs.

Astra

Astra enjoyed a record year in 2011 producing a net profit under Indonesian accounting standards of Rp17.8 trillion, up 24%, equivalent to US$2,027 million. Its progress was supported by growth in the Indonesian economy that benefited from increased domestic demand, strong commodity prices and the availability of financing at attractive interest rates, reflecting the country's enhanced global credit standing.

Net income from Astra's automotive businesses grew by 13% in local currency terms. Astra's motor vehicle sales rose by 13% to 483,000 units, representing a market share of 54% compared to 56% in 2010. Astra Honda Motor's motorcycle sales improved by 25% to 4.3 million units, with its market share increasing from 46% to 53%. Increased manufacturing capacity was introduced in both its motor vehicle and motorcycle operations. Astra Otoparts reported a decline in net income of 12% due to increased material costs and higher marketing and branding expenses.

The net income from Astra's financial services businesses rose 26%. Astra's finance operations benefited from loan book growth in line with industry growth, reduced offshore funding costs and a stable customer credit experience. Insurance company, Asuransi Astra Buana, benefited from higher premiums, while Astra's joint venture, Bank Permata, reported net income rising 15%.

United Tractors' net income was up 52% as its Komatsu heavy equipment business sold 8,467 units, a rise of 57%. Its contract mining operations achieved an increase in coal production of 11% to 87 million tonnes and an increase in overburden removal of 22% to 796 million bcm. United Tractors also sold 4.5 million tonnes of coal produced from its own mines and acquired a further five concessions with estimated reserves of between 250 and 370 million tonnes. Astra Agro Lestari reported earnings up 19% as palm oil production rose 14% and average prices achieved were 8% higher.

There was some improvement in the contribution from infrastructure and logistics as well as from information technology activities. A 95% stake in a greenfield 40 km toll road near Surabaya was acquired during the year, and the total project cost is expected to be some US$400 million.

Further Interests

Rothschilds Continuation

Rothschilds Continuation, in which the Company holds a 21% interest, is the holding company of an independent global financial advisory group with 51 offices in 40 countries worldwide. In common with most financial institutions, the company has continued to face challenging markets during 2011. Despite this, it has maintained its market share and is well positioned in the areas of financial advisory, wealth management, and merchant banking.

Other

ACLEDA Bank of Cambodia, in which a 12% stake is held, achieved a record profit in 2011 and is optimistic of further growth in 2012. Similarly, Asia Commercial Bank, which is 7% held, performed creditably as Vietnam faced up to the challenge of restoring balanced growth while containing inflation.

In India, Tata Power's large generation projects are progressing to completion, while its business is benefiting from stable Indian utility earnings and increasing returns from its Indonesian coal investments. The Company has a 3% investment.

Anthony Nightingale

Managing Director

2nd March 2012