Final Results

6th Mar 2009 09:05



To: Business Editor	6th March 2009
	For immediate release

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

Jardine Matheson Holdings Limited

2008 Preliminary Announcement of Results 

Highlights

▪	Underlying earnings per share* up 15%
▪	Full-year dividend up 15%
▪	Markets weaken as year ends
▪	Good results from Astra, Dairy Farm and Jardine Lloyd Thompson
▪	Hongkong Land property portfolio value declines in second half

"Predicting the future is impracticable at the present juncture. While the prospects for our businesses remain sound in the year ahead, some are facing a greater impact than others from the deteriorating market conditions. The Group's strong financial position, however, will stand it in good stead, enabling our businesses to develop even in the difficult times which Asian economies are likely to encounter in 2009."

Henry Keswick, Chairman

6th March 2009

Results 

 

Year ended 31st December
	2008 US$m	2007 US$m	Change %
Revenue together with revenue of associates and  joint ventures+	36,156	31,616	+14
Underlying profit attributable to shareholders*	822	719	+14
Profit attributable to shareholders	666	1,828	–64
Shareholders’ funds	8,248	8,490	–3
	US$	US$	%
Underlying earnings per share*	2.33	2.03	+15
Earnings per share	1.89	5.16	–63
Dividends per share	0.75	0.65	+15
Net asset value per share	23.30	24.09	–3
+ Includes 100% of revenue from associates and joint ventures.
* The Group uses ‘underlying business performance’ in its internal financial reporting to distinguish between the underlying profits and non-trading items, as more fully described in note 8. Management considers this to be a key measure and has provided this analysis as additional information in order to provide greater understanding of the Group’s underlying business performance.

The final dividend of US¢51.00 per share will be payable on 13th May 2009, subject to approval at the Annual General Meeting to be held on 7th May 2009, to shareholders on the register of members at the close of business on 20th March 2009 and will be available in cash with a scrip alternative. The ex-dividend date will be on 18th March 2009, and the share registers will be closed from 23rd to 27th March 2009, inclusive.

Jardine Matheson Holdings Limited

Preliminary Announcement of Results

For The Year Ended 31st December 2008

Overview 

In the first nine months of 2008 record earnings were produced by nearly all the Group's companies. During the last quarter, however, several businesses were affected by the global economic downturn which followed the sharp further deterioration in financial markets. Overall, the earnings momentum achieved led to a satisfactory result for the full year.

Performance

Jardine Matheson achieved a record underlying profit in 2008 of US$822 million, an increase of 14%. The turnover of the Group in 2008, including 100% of associates and joint ventures, was US$36.2 billion, compared with US$31.6 billion in the prior year.

The Group has modest levels of net debt, is well funded and has minimal refinancing requirements during the coming year. Its consolidated net gearing, excluding financial services companies and assuming the pro-forma consolidation of Hongkong Land, was 16% at the end of 2008.

The profit attributable to shareholders for the year was lower at US$666 million, primarily due to the decline in the value of Hongkong Land's investment property portfolio. Shareholders' funds were 3% lower at US$8.2 billion.

The Board is recommending a final dividend of US¢51.00 per share, which represents an overall increase of 15% for the full year.

Business Developments

In what was a mixed year for Jardine Pacific's businesses, its engineering and construction operations performed well and are expected to benefit further from increased expenditure on infrastructure projects. Jardine Motors was more severely affected by the economic downturn, particularly in the United Kingdom, but the development of its network of Mercedes-Benz outlets in Southern China remains on track.  Jardine Lloyd Thompson's restructuring is now substantially complete and has produced greater business volumes, lower costs and enhanced profitability. 

Hongkong Land's property markets came off their highs in the second half of 2008, but the company's earnings will continue to benefit from positive rental reversions achieved during the year. Sales of its residential developments, however, are likely to become more difficult. Construction is proceeding at its Singapore joint venture development, Marina Bay Financial Centre, with over 60% of the commercial office space having been pre-committed well in advance of completion. Hongkong Land is expected to become a subsidiary during 2009 after many years of open market share purchases. 

Dairy Farm is continuing to expand its retail businesses across Asia's growing consumer markets, particularly in Malaysia, Indonesia and mainland China, and the group is now operating some 4,650 outlets in the region. Strong growth was achieved in both sales and profit in 2008, and positive cash flows had eliminated net borrowings by the year end. 

Mandarin Oriental's expansion plans are progressing well despite the worsening trading environment. It currently has 23 hotels in operation and expects to open a further 3 in 2009. The group has added Moscow and Atlanta to its development portfolio of 18 properties, although some projects might face delays in the current climate. In January 2009, agreement was reached for the sale of the group's 50% interest in its existing property in Macau, which should give rise to a profit of US$75 million when completed later this year.

In July 2008, Jardine Cycle & Carriage acquired a 20% interest in Truong Hai Automotive Corporation, a Vietnamese group with interests in the manufacture, sale and maintenance of commercial vehicles and passenger cars. The investment offers further exposure for the Group to the developing Vietnamese economy. 

Astra benefited from a robust Indonesian economy in 2008 with particularly good sales in its motor operations and record earnings from its palm oil plantations, although commodity prices and economic conditions deteriorated in the final quarter. The group has continued to develop its coal mining interests with the acquisition of a further mine, while at the same time expanding its palm oil plantations.

Outlook

In conclusion, the Chairman, Henry Keswick said, "Predicting the future is impracticable at the present juncture. While the prospects for our businesses remain sound in the year ahead, some are facing a greater impact than others from the deteriorating market conditions. The Group's strong financial position, however, will stand it in good stead, enabling our businesses to develop even in the difficult times which Asian economies are likely to encounter in 2009."

Managing Director's Review

Jardine Matheson's underlying profit in 2008 was US$822 million, an increase of 14%. Underlying earnings per share rose 15% to US$2.33. 

Of the Group's unlisted subsidiaries, Jardine Pacific did well to record modestly higher earnings as certain of its businesses faced weaker markets. Jardine Motors had a more difficult year, particularly in the United Kingdom. Among the Group's listed subsidiaries, Dairy Farm produced another impressive result with all its major retail operations continuing to perform well. At Mandarin Oriental, profits declined as trading conditions became harsher as the year progressed. Jardine Cycle & Carriage benefited from an overall strong year at Astra, despite some softening towards the year end. Of the Group associates, Hongkong Land reported a good increase in profit from its commercial properties, but weakness in the Singapore residential market led to provisions being required. Jardine Lloyd Thompson achieved a much improved trading performance. The Group also benefited from lower net financing charges.

The Company's share of the downward revaluation of investment properties in 2008 included US$205 million from Hongkong Land and US$10 million from Jardine Pacific, and compares with upward revaluations of US$1,015 million in 2007. These revaluations are taken through the profit and loss account in accordance with accounting standards and, together with other non-trading items, being principally a gain of US$64 million arising on an increase in the Group's interest in Hongkong Land partly offset by a US$26 million share in the reduction in the fair value of plantations, led to a profit attributable to shareholders of US$666 million. This compares with US$1,828 million in 2007. 

During the year Jardine Strategic acquired a further 1% interest in Hongkong Land, which itself repurchased 2% of its issued capital in the latter part of the year. Jardine Strategic also increased its shareholding in Jardine Cycle and Carriage to 68%, while Astra invested further in shares of its subsidiaries, United Tractors and Astra Otoparts.

The Group benefits from surplus cash, strong operating cash flows and substantial committed facilities with no significant refinancing required over the next year. As such, its businesses are well placed to continue to pursue their development programmes. At 31st December 2008, consolidated net debt excluding financial services companies was US$545 million, compared with US$618 million at the end of 2007, resulting in gearing of 4%. Hongkong Land, currently an associate, had net debt of US$2,601 million at the year end. Assuming the pro-forma consolidation of Hongkong Land, the Group's gearing excluding financial services companies was 16% at the end of 2008.

In the coming year weaker results can be expected from the Group's motor and hotel businesses, while the residential property operations of Hongkong Land will face challenging markets for the launch of new developments. On the other hand, in the absence of unexpected purchaser defaults, Hongkong Land's results in 2009 should include profits recognized on residential project completions, while the Group's food retailing, construction and insurance broking activities should hold up well. The contribution from Indonesia is likely to be affected by the weakness of the Rupiah and the fall in commodity prices. 

While it is still too early to judge the full effects of the downturn on the Group's activities, Jardine Matheson remains soundly financed and in a good position to weather the current economic challenges.

Jardine Pacific

Jardine Pacific produced an underlying profit of US$116 million in 2008, slightly above 2007, with good performances from its engineering and construction businesses. A decrease of US$10 million in the value of the group's investment property portfolio was substantially offset by gains on disposals, leading to a profit attributable to shareholders of US$113 million for the year. Shareholders' funds were US$361 million at the end of 2008, giving an underlying return of 28% on average shareholders' funds.

Financial information of Jardine Pacific's larger businesses is summarized below: 

	Underlying profit			Shareholders' funds
	2008 US$m	2007 US$m		2008 US$m	2007 US$m
Gammon	22	16		32	64
HACTL	32	33		98	99
JEC	14	12		24	35
JOS	11	14		25	30
Jardine Aviation Services	5	8		12	18
Jardine Property Investment	3	3		261	260
Jardine Restaurants	13	17		12	12
Jardine Schindler	18	18		29	40
Jardine Shipping Services	5	5		16	16
Corporate and other interests	(9)	(11)		(147)	(98)
Continuing businesses	114	115		362	476
Discontinued businesses	2	-		(1)	(1)
	116	115		361	475

Hong Kong Air Cargo Terminals suffered from the sharp global slowdown in trade in the final quarter of 2008, recording a 4% drop in cargo throughput for the full year. The impact was partially offset by lower interest and taxation charges resulting in a profit contribution of US$32 million. Jardine Shipping Services performed well during the first half of the year, but then experienced lower freight rates and volumes in its liner agency business. Jardine Aviation Services was also impacted by reduced fee income and higher operating costs.

Gammon benefited from further improvement in volumes, leading to a profit contribution of US$22 million and a record order book. Jardine Schindler performed satisfactorily on new installations and grew its existing maintenance portfolio, ending the year with a contribution of US$18 million. JEC recorded a profit of US$14 million, up 12%, with a good performance in Thailand.

Jardine Restaurants experienced softening in sales in both Hong Kong and Taiwan and recorded lower earnings of US$13 million. JOS produced a profit of US$11 million in 2008, down by 21%, on lower sales due to a weaker market. 

Jardine Motors

Jardine Motors' underlying profit declined 30% in 2008 to US$44 million, primarily due to the deterioration in the motor vehicle market in the United Kingdom. Its profit attributable to shareholders, at US$39 million, was also reduced by a fall in the value of properties. 

Zung Fu achieved satisfactory results in Hong Kong despite the adverse effects of the economic downturn, which began to be felt in the final quarter. The group maintained its leading position in the luxury car market with deliveries of Mercedes-Benz passenger cars at similar levels to 2007. There was an improved contribution from its service centres, a reduced loss from the Hyundai passenger car franchise, and successful tender awards have produced a strong order book for its commercial vehicle business. Its dealership in Macau also benefited from higher sales.

The Mercedes-Benz dealerships in Southern China continued their profitable growth in 2008. New car deliveries increased by over 30% to more than 5,300 units and the aftersales business achieved higher volumes. The total number of outlets reached 14 at the end of the year, with a further three under development.

Motor dealerships in the United Kingdom experienced very difficult trading conditions. New vehicle sales declined, especially in the luxury car segment, and used car margins faced significant downward pressure. Additional costs were also incurred in repositioning the business to address the market weaknesses.

Jardine Lloyd Thompson

Jardine Lloyd Thompson's businesses performed well in 2008 despite the challenging conditions in insurance markets as the group benefited from the repositioning undertaken in recent years. The group announced a turnover equivalent to US$989 million, up 13% in its reporting currency, due to good organic growth and acquisitions. Underlying profit after tax and minorities in its reporting currency was 17% higher, reflecting the higher turnover, an increased contribution from an associate and reduced costs. The profit after tax and minorities was equivalent to US$117 million, a decrease of 12% in its reporting currency from the 2007 result which had included an exceptional net gain.

The risk & insurance group, comprising Jardine Lloyd Thompson's worldwide retail operations and specialist risk and insurance broking operations based largely in London, achieved a satisfactory increase in turnover and trading profit against a background of continuing soft insurance market conditions. The employee benefits business in the United Kingdom also achieved good increases in both turnover and trading profit. Trading profit margins were maintained or improved across the group.

Hongkong LandA positive rental reversion cycle in Hong Kong's Central district enabled Hongkong Land to report an underlying profit up 9% at US$375 million, despite a US$140 million share of a provision against residential development properties in Singapore by its subsidiary MCL Land. The year-end valuation of the group's commercial investment properties, including the share of investment properties in joint ventures and associates, was 4% lower for the year at US$14,525 million. The incorporation of this revaluation produced a loss attributable to shareholders of US$109 million, compared with a profit of US$2,840 million in 2007.

While rents in Hong Kong's Central district remained at record levels throughout 2008 and demand for high quality commercial office space continued to be strong, there were signs of weakening towards the year end. The luxury retail market also performed well before it too started to weaken in the fourth quarter. The Singapore office market began to soften in the second half of the year, although the group's wholly-owned property One Raffles Link and its joint venture property One Raffles Quay both remain fully let. Its joint venture development, Marina Bay Financial Centre, which is due to complete in two phases in 2010 and 2012, now has over 60% of its commercial office space pre-committed. In the residential sector, developments in Beijing, Chongqing and Singapore were completed during the year allowing profits to be recognized.

Dairy Farm

Trading conditions were generally favourable in Dairy Farm's major markets in 2008. The group achieved further good results with sales, including 100% of associates, increasing by 13% to US$7.7 billion and underlying net profit increasing by 24% to US$320 million. Its profit attributable to shareholders was US$333 million and included non-trading gains of US$13 million from asset disposals. Overall, Dairy Farm's cash generation has remained strong leading to the effective elimination of net gearing at the year end and ensuring that adequate funds are available for expansion.

Dairy Farm's operations in both Hong Kong and Macau performed well. In Southern China, it now has more than 500 7-Eleven stores operating, and improved results have been achieved from its enhanced health and beauty outlets. In Taiwan, Dairy Farm's supermarkets performed better with the continued development of smaller-format fresh stores, while IKEA's underlying performance is making progress. Maxim's was able to maintain its profitability despite much more challenging conditions in Hong Kong.

All formats in Malaysia achieved another year of good results as expansion continued in both peninsular Malaysia and East Malaysia. Its growth in Singapore was led by the supermarkets and convenience stores, while Giant hypermarkets also performed better following a difficult year in 2007. Dairy Farm's performance in Indonesia improved significantly in all formats, with nine new hypermarkets being opened bringing the total to 26. The group has also extended its operations to Brunei. In the group's joint ventures in India, its health and beauty chain maintained a measured pace of expansion while its supermarkets continued to face highly competitive trading conditions.

Mandarin Oriental

After a satisfactory start to the year Mandarin Oriental faced weakening demand as global economic conditions deteriorated, particularly from September 2008 onwards in what is traditionally its strongest season. Earnings before interest, tax, depreciation and amortization for the year were 14% lower at US$164 million. Profit attributable to shareholders was US$67 million, compared to US$108 million in 2007 which included US$21 million in non-trading items.

Most of the group's hotels experienced lower occupancy as demand from the corporate sector declined, although the resilience of the leisure sector contributed to increases in the average room rate. The group's wholly-owned Hong Kong hotels maintained their profitability, but the results from Europe were adversely affected by currency movements and an eight-month renovation project in Geneva. The group's hotels in The Americas were affected by the downturn, but maintained their competitive positions.

Mandarin Oriental's development programme progressed with the announcement of hotel management projects in Moscow and Atlanta, both to be completed in 2011, and a luxury resort in The Maldives, due to open in the next 12 months. Hotels were opened in Boston in October 2008 and Sanya in early 2009, and a further three are due to open this year in Marrakech, Barcelona and Las Vegas, all under long-term management contracts. The opening of its Beijing hotel, which is also a management contract, has been postponed following a fire at the site. Mandarin Oriental now operates 23 hotels with a further 18 under development. 

The group has announced the sale of its 50% interest in its existing Macau hotel for some US$90 million, producing a net gain of approximately US$75 million that will be recognized upon its expected completion in mid 2009.

Jardine Cycle & Carriage

Jardine Cycle & Carriage produced a satisfactory result in 2008 with good performances across the group in the first nine months. A number of its businesses were, however, affected in the final quarter by a decline in commodity prices, the weakening of the Indonesian Rupiah and a tightening of credit. Underlying profit rose by 28% to US$477 million in 2008, while profit attributable to shareholders was 32% higher at US$448 million, after accounting for a net non-trading loss of US$29 million. The group's balance sheet remains strong with low levels of gearing.

Astra's contribution to the underlying profit was up 29% at US$460 million, with robust automotive sales and a strong performance by its non-automotive activities for most of the year. Jardine Cycle & Carriage's share of underlying profit from its other motor interests increased by 4% to US$44 million. There was a good performance in Singapore as sales of Mercedes-Benz improved despite a contraction in the motor market and a fine result at Tunas Ridean in Indonesia. Cycle & Carriage Bintang in Malaysia completed a restructuring so as to focus exclusively on Mercedes-Benz, and its reduced requirement for operating funds enabled a special dividend of US$30 million to be paid.

Jardine Cycle & Carriage has invested US$77 million to acquire a 20% shareholding in Truong Hai Automotive Corporation, a Vietnamese group with interests in the manufacture, sale and maintenance of commercial vehicles and passenger cars.  The company also increased its shareholding in Tunas Ridean to 38%. In January 2009, Tunas Ridean sold a 51% interest in its wholly-owned automotive finance subsidiary to Bank Mandiri.  

Astra

Astra reported a net profit for the year, under Indonesian accounting standards, equivalent to US$942 million, an increase of 41% in its reporting currency. Strong operating cash flows, a substantial dividend from Astra Honda Motor and proceeds from a rights issue by United Tractors were substantially offset by the cost of acquisitions and the investment in shares in group companies, leaving Astra's year-end net debt, excluding borrowings within its financial services operations, largely unchanged at US$169 million. 

Astra's automotive operations benefited from a 40% increase in the Indonesian wholesale motor vehicle market. Its sales grew by 43% to 318,000 units, supported by the launch of new models, resulting in an increased market share of 52%. The wholesale motorcycle market grew by 33% in 2008 to 6.2 million units, and sales of the Astra Honda Motor manufacturing and distribution joint venture rose by 34% to 2.9 million units, maintaining its market share at 46%. Astra Otoparts reported a profit up 24% as sales rose by 27%. 

The performance of Astra's consumer finance operations improved in line with the growth in automotive sales. The volume financed was US$2.7 billion, up 29% in Indonesian Rupiah, although the consumer finance loan book at the year end was little changed at US$1.3 billion as most new business was joint finance without recourse. The profit at 44.5%-owned Bank Permata was down 9% in its reporting currency at US$46 million. 

There was an excellent result from 80%-held Astra Agro Lestari with a 33% growth in profit. Palm oil production rose by 7% to 982,000 tonnes and prices achieved were on average 19% higher than in 2007, although prices have now declined significantly from their recent highs. During the year, the company increased its planted area by 10% to 251,000 hectares.

In a good year for United Tractors, which is 60%-held, profit was 78% higher. Sales of Komatsu equipment rose 26% to some 4,300 units, although demand reduced significantly in the last quarter. Mining subsidiary, Pamapersada Nusantara, achieved an 8% increase in coal extracted at 59 million tonnes and a 25% increase in overburden removed at 442 million bcm in its contract mining operations, while coal sales from its own mines amounted to 4 million tonnes. 

Astra's information technology business and infrastructure investments performed satisfactorily.

Further Interests 

Rothschilds Continuation, in which Jardine Strategic holds a 21% interest, is the holding company of an independent financial services group which has some 50 offices in more than 37 countries worldwide. In a very difficult year globally for the financial services sector, Rothschild fully maintained its position as a leading M&A adviser, although volumes declined. There was, however, increasing demand for the group's debt and restructuring advisory services as the year progressed.

Tata Industries is an unlisted Indian investment company in which Jardine Strategic holds a 20% shareholding. Tata Industries' largest investment is in Tata Teleservices, a primarily mobile service provider in the fast growing Indian telecom sector. In 2008, DoCoMo of Japan invested US$2.7 billion in Tata Teleservices for a 26% holding and this new capital will be largely employed in the continuing roll-out of Tata Teleservices' GSM infrastructure.

Asia Commercial Bank in Vietnam encountered a significantly tougher trading environment in 2008. Banking sector restrictions to counter inflation were imposed early in the year and these eased only when the global economic slowdown impacted Vietnam later in the year. Despite this, the bank reported 2008 pre-tax profit growth of 20% and paid a special dividend, of which Jardine Strategic's 7% share was US$5 million.

Anthony Nightingale

Managing Director

6th March 2009

Jardine Matheson Holdings Limited Consolidated Profit and Loss Account For the year ended 31st December 2008
				2008								2007
		Underlying  Business performance		Non-  Trading  Items			Total			Underlying  Business performance		Non- Trading items			Total
		US$m		US$m			US$m			US$m		US$m			US$m
Revenue (note 2)		22,362		-			22,362			19,445		-			19,445
Net operating costs (note 3)		(20,541)		(124)			(20,665)			(17,916)		252			(17,664)
Operating profit (note 4)		1,821		(124)			1,697			1,529		252			1,781
Financing charges		(142)		-			(142)			(219)		-			(219)
Financing income		96		-			96			121		-			121
Net financing charges		(46)		-			(46)			(98)		-			(98)
Share of results of associates and joint ventures  (note 5)		622		(156)			466			542		1,114			1,656
Profit before tax		2,397		(280)			2,117			1,973		1,366			3,339
Tax (note 6)		(508)		34			(474)			(415)		(40)			(455)
Profit after tax		1,889		(246)			1,643			1,558		1,326			2,884
Attributable to: Shareholders of the Company		822		(156)			666			719		1,109			1,828
Minority interests		1,067		(90)			977			839		217			1,056
		1,889		(246)			1,643			1,558		1,326			2,884
		US$					US$			US$					US$
Earnings per share (note 7)
- basic	2.33						1.89			2.03					5.16
- diluted	2.32						1.88			2.02					5.03

 

Jardine Matheson Holdings Limited Consolidated Balance Sheet at 31st December 2008
	2008		2007
	US$m		US$m
Assets
Intangible assets	1,979		1,890
Tangible assets	3,310		3,149
Investment properties	352		355
Plantations	353		515
Associates and joint ventures	7,807		7,964
Other investments	583		721
Non-current debtors	1,037		1,002
Deferred tax assets	101		114
Pension assets	28		215
Non-current assets	15,550		15,925
Stocks and work in progress	1,960		1,610
Current debtors	2,188		2,322
Current investments	4		21
Current tax assets	80		154
Bank balances and other liquid funds
- non-financial services companies	2,065		1,966
- financial services companies	183		167
	2,248		2,133
	6,480		6,240
Non-current assets classified as held for sale (note 9)	68		48
Current assets	6,548		6,288
Total assets	22,098		22,213
Equity
Share capital	156		155
Share premium and capital reserves	37		25
Revenue and other reserves	9,076		9,266
Own shares held	(1,021)		(956)
Shareholders’ funds (note 10)	8,248		8,490
Minority interests	5,300		5,208
Total equity	13,548		13,698
Liabilities
Long-term borrowings
- non-financial services companies	2,039		2,037
- financial services companies	563		616
	2,602		2,653
Deferred tax liabilities	456		599
Pension liabilities	142		126
Non-current creditors	140		67
Non-current provisions	57		42
Non-current liabilities	3,397		3,487
Current creditors	3,493		3,375
Current borrowings
- non-financial services companies	571		547
- financial services companies	798		806
	1,369		1,353
Current tax liabilities	236		230
Current provisions	55		68
	5,153		5,026
Liabilities directly associated with non-current assets
classified as held for sale (note 9)	-		2
Current liabilities	5,153		5,028
Total liabilities	8,550		8,515
Total equity and liabilities	22,098		22,213

Jardine Matheson Holdings Limited Consolidated Statement of Recognized Income and Expense for the year ended 31st December 2008
	2008		2007
	US$m		US$m
Surpluses on revaluation of intangible assets	13		-
Surpluses on revaluation of properties	19		114
(Losses)/gains on revaluation of other investments	(294)		176
Actuarial (losses)/gains on employee benefit plans	(306)		86
Net exchange translation differences	(845)		(87)
Losses on cash flow hedges	(54)		(8)
Tax on items taken directly to equity	153		(26)
Net (loss)/income recognized directly in equity	(1,314)		255
Transfer to profit and loss on disposal of other investments	5		(59)
Transfer to profit and loss on realization of exchange reserves	(2)		(7)
Transfer to profit and loss in respect of cash flow hedges	(1)		2
Profit after tax	1,643		2,884
Total recognized income and expense for the year	331		3,075
Attributable to:
Shareholders of the Company	(66)		2,063
Minority interests	397		1,012
	331		3,075
Surpluses on revaluation of intangible assets represent the increase in fair value attributable to the Group's previously held interests in associates on the dates they became subsidiary undertakings.

Jardine Matheson Holdings Limited Consolidated Cash Flow Statement for the year ended 31st December 2008
		2008				2007
		US$m				US$m
Operating activities
Operating profit		1,697				1,781
Depreciation and amortization		520				479
Other non-cash items		346				(51)
(Increase)/decrease in working capital		(409)				77
Interest received		99				116
Interest and other financing charges paid		(149)				(214)
Tax paid		(443)				(295)
		1,661				1,893
Dividends from associates and joint ventures		495				305
Cash flows from operating activities		2,156				2,198
Investing activities
Purchase of subsidiary undertakings (note 12(a))		(441)				(184)
Purchase of associates and joint ventures (note 12(b))		(205)				(113)
Purchase of other investments (note 12(c))		(204)				(71)
Purchase of land use rights		(53)				(36)
Purchase of other intangible assets		(40)				(30)
Purchase of tangible assets		(924)				(615)
Purchase of investment properties		(10)				(6)
Purchase of plantations		(71)				(41)
Advance of mezzanine loans		(1)				(3)
Repayment of mezzanine loans		-				12
Capital distribution from associates		23				14
Sale of subsidiary undertakings (note 12(d))		(33)				6
Sale of associates and joint ventures (note 12(e))		27				127
Sale of other investments (note 12(f))		82				127
Sale of land use rights		9				14
Sale of tangible assets		91				56
Sale of investment properties		9				7
Sale of plantations		14				-
Cash flows from investing activities		(1,727)				(736)
Financing activities
Issue of shares		4				1
Repurchase of shares		-				(13)
Capital contribution from minority shareholders		160				5
Drawdown of borrowings		12,850				8,075
Repayment of borrowings		(12,649)				(9,512)
Dividends paid by the Company		(157)				(126)
Dividends paid to minority shareholders		(398)				(290)
Cash flows from financing activities		(190)				(1,860)
Effect of exchange rate changes		(103)				(11)
Net increase/(decrease) in cash and cash equivalents		136				(409)
Cash and cash equivalents at 1st January		2,082				2,491
Cash and cash equivalents at 31st December		2,218				2,082

Jardine Matheson Holdings Limited Analysis of Profit Contribution for the year ended 31st December 2008
	2008		2007
	US$m		US$m
Group contribution
Jardine Pacific	116		115
Jardine Motors	44		63
Jardine Lloyd Thompson	38		33
Hongkong Land	145		131
Dairy Farm	202		161
Mandarin Oriental	42		47
Jardine Cycle & Carriage	23		22
Astra	238		178
Corporate and other interests	(26)		(31)
Underlying profit	822		719
(Decrease)/increase in fair value of investment properties	(214)		1,015
Other non-trading items	58		94
Profit attributable to shareholders	666		1,828
Analysis of Jardine Pacific's contribution
Gammon	22		16
HACTL	32		33
JEC	14		12
JOS	11		14
Jardine Aviation Services	5		8
Jardine Property Investment	3		3
Jardine Restaurants	13		17
Jardine Schindler	18		18
Jardine Shipping Services	5		5
Corporate and other interests	(9)		(11)
Continuing businesses	114		115
Discontinued businesses	2		-
	116		115
Analysis of Jardine Motor's contribution
Hong Kong and Mainland China	45		41
United Kingdom	-		23
Corporate	(1)		(1)
	44		63

Jardine Matheson Holdings Limited
Notes
1.	Accounting Policies and Basis of Preparation
	The financial information contained in this announcement has been based on the audited results for the year ended 31st December 2008 which have been prepared in conformity with International Financial Reporting Standards, including International Accounting Standards and Interpretations adopted by the International Accounting Standards Board.
	In 2008, the Group adopted the following interpretations to existing standards which are relevant to its operations:
	IFRIC 11	IFRS 2 - Group and Treasury Share Transactions
	IFRIC 12	Service Concession Arrangements
	IFRIC 14	IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
	The adoption of the above interpretations does not have a material impact on the results of the Group.
	The Group's reportable segments are set out in note 2.
	Certain comparative figures have been reclassified to conform with the current year presentation.

2.	Revenue
		2008		2007
		US$m		US$m
	By business:
	Jardine Pacific	1,228		1,204
	Jardine Motors	2,677		2,911
	Dairy Farm	6,733		5,887
	Mandarin Oriental	530		529
	Jardine Cycle & Carriage	1,218		1,239
	Astra	9,974		7,673
	Other activities	2		2
		22,362		19,445

3.	Net Operating Costs
		2008		2007
		US$m		US$m
	Cost of sales	(17,070)		(14,845)
	Other operating income	223		432
	Selling and distribution costs	(2,475)		(2,227)
	Administration expenses	(1,089)		(981)
	Other operating expenses	(254)		(43)
		(20,665)		(17,664)
4.	Operating Profit
		2008		2007
		US$m		US$m
	By business:
	Jardine Pacific	32		163
	Jardine Motors	71		124
	Dairy Farm	387		276
	Mandarin Oriental	80		133
	Jardine Cycle & Carriage	56		38
	Astra	1,108		1,034
		1,734		1,768
	Corporate and other interests	(37)		28
	Intersegment transactions	-		(15)
		1,697		1,781
	Operating profit included the following gains/(losses) from non-trading items:
	(Decrease)/increase in fair value of investment properties	(13)		88
	(Decrease)/increase in fair value of plantations	(162)		35
	Revaluation of property interests	(4)		-
	Sale and closure of businesses	14		28
	Sale of plantations and related assets	34		-
	Sale of investments	1		70
	Sale of property interests	3		-
	Change in attributable interests in subsidiary undertakings	(1)		2
	Restructuring of businesses	2		(7)
	Realization of exchange gains*	1		15
	Discount on acquisition of businesses	-		3
	Value added tax recovery in Jardine Motors	2		14
	Other	(1)		4
		(124)		252
*	Arising on repatriation of capital from foreign subsidiary undertakings.

5.		Share of Results of Associates and Joint Ventures
			2008		2007
			US$m		US$m
		By business:
		Jardine Pacific	92		86
		Jardine Lloyd Thompson	37		45
		Hongkong Land	11		1,342
		Dairy Farm	30		30
		Mandarin Oriental	11		23
		Jardine Cycle & Carriage	6		9
		Astra	264		116
		Corporate and other interests	15		5
			466		1,656
		Share of results of associates and joint ventures included the following gains/(losses) from non-trading items:
		(Decrease)/increase in fair value of investment properties	(252)		1,174
		Asset impairment	(5)		(72)
		Sale and closure of businesses	5		(9)
		Sale of investments	3		1
		Sale of property interests	2		6
		Change in attributable interests in associates	86		-
		Restructuring of businesses	(1)		14
		Deferred tax on franchise rights*	6		-
			(156)		1,114
	Results are shown after tax and minority interests in the associates and joint ventures.
*	Arising on change in tax rate on deferred tax relating to the valuation of franchise rights on acquisition of Astra.

6.	Tax
		2008		2007
		US$m		US$m
	Current tax	(550)		(417)
	Deferred tax	76		(38)
		(474)		(455)
	Greater China	(52)		(70)
	Southeast Asia	(414)		(345)
	United Kingdom	(9)		(21)
	Rest of the world	1		(19)
		(474)		(455)

	Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates.
	Share of tax of associates and joint ventures of US$92 million (2007: US$339 million) is included in share of results of associates and joint ventures.
7.	Earnings per Share
	Basic earnings per share are calculated on profit attributable to shareholders of US$666 million (2007: US$1,828 million) and on the weighted average number of 353 million (2007: 354 million) shares in issue during the year.
	Diluted earnings per share are calculated on profit attributable to shareholders of US$666 million (2007: US$1,787 million), which is after adjusting for the effects of the conversion of dilutive potential ordinary shares of subsidiary undertakings, associates or joint ventures, and on the weighted average number of 354 million (2007: 355 million) shares in issue during the year.
	The weighted average number of shares is arrived at as follows:

Ordinary shares in millions

		2008		2007
	Weighted average number of shares in issue	622		619
	Shares held by the Trustee under the Senior Executive Share Incentive Schemes	(1)		(2)
	Company's share of shares held by subsidiary  undertakings	(268)		(263)
	Weighted average number of shares for basic earnings  per share calculation	353		354
	Adjustment for shares deemed to be issued for no  consideration under the Senior Executive Share Incentive Schemes	1		1
	Weighted average number of shares for diluted earnings  per share calculation	354		355

	Additional basic and diluted earnings per share are also calculated based on underlying profit attributable to shareholders. A reconciliation of earnings is set out below:
			2008			2007
			Basic earnings per share	Diluted earnings per share		Basic earnings per share	Diluted earnings per share
		US$m	US$	US$	US$m	US$	US$
	Profit attributable to shareholders	666	1.89	1.88	1,828	5.16	5.03
	Non-trading items (note 8)	156			(1,109)
	Underlying profit attributable to shareholders	822	2.33	2.32	719	2.03	2.02

8.	Non-trading Items
	Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance. Items classified as non-trading items include fair value gains or losses on revaluation of investment properties and plantations; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets and other investments; provisions for the closure of businesses; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.
	An analysis of non-trading items after interest, tax and minority interests is set out below:

			2008		2007
			US$m		US$m
	(Decrease)/increase in fair value of investment properties
	- Hongkong Land		(205)		944
	- other		(9)		71
			(214)		1,015
	(Decrease)/increase in fair value of plantations		(26)		5
	Asset impairment
	- Mandarin Oriental, Kuala Lumpur		-		3
	- motorcycle franchise rights		-		(19)
	- other		(2)		(2)
			(2)		(18)
	Revaluation of property interests		(4)		-
	Sale and closure of businesses
	- 50% interest in Olive Young		8		-
	- 25% interest in Mandarin Oriental, New York		-		10
	- other		4		2
			12		12
	Sale of plantations and related assets		5		-
	Sale of investments		3		55
	Sale of property interests		4		5
	Change in attributable interests in subsidiary undertakings
	and associates		62		-
	Restructuring of businesses
	- SIACI in Jardine Lloyd Thompson		-		18
	- other		-		(6)
			-		12
	Realization of exchange gains*		-		11
	Discount on acquisition of businesses		-		1
	Value added tax recovery in Jardine Motors		2		10
	Deferred tax on franchise rights+		3		-
	Other		(1)		1
			(156)		1,109

*	Arising on repatriation of capital from foreign subsidiary undertakings.
+	Arising on change in tax rate on deferred tax relating to the valuation of franchise rights on acquisition of Astra.

9.	Non-current Assets Classified as Held for Sale
	The major classes of assets and liabilities classified as held for sale are set out below:
		2008		2007
		US$m		US$m
	Intangible assets	15		-
	Tangible assets	53		39
	Investment properties	-		2
	Associates and joint ventures	-		7
	Total assets	68		48
	Deferred tax liabilities	-		2
	Total liabilities	-		2

	At 31st December 2008, the non-current assets classified as held for sale include Dairy Farm's interest in two retail properties in Malaysia with a carrying value of US$65 million.
	At 31st December 2007, the non-current assets classified as held for sale include Dairy Farm's interest in a retail property in Malaysia with a carrying value of US$33 million and its 50% interest in Olive Young with a carrying value of US$7 million. The sale of Olive Young was completed in February 2008 and resulted in a profit before tax of US$14 million.

10.	Shareholders' Funds
		2008		2007
		US$m		US$m
	At 1st January	8,490		6,594
	Recognized income and expense attributable to shareholders	(66)		2,063
	Dividends (note 11)	(243)		(212)
	Employee share option schemes
	- value of employee services	9		9
	- exercise of share options	4		1
	Scrip issued in lieu of dividends	119		112
	Repurchase of shares	-		(13)
	Increase in own shares held	(65)		(64)
	At 31st December	8,248		8,490
11.	Dividends
		2008		2007
		US$m		US$m
	Final dividend in respect of 2007 of US¢45.00
	(2006: US¢40.00) per share	279		246
	Interim dividend in respect of 2008 of US¢24.00
	(2007: US¢20.00) per share	149		123
		428		369
	Company's share of dividends paid on the shares
	held by subsidiary undertakings	(185)		(157)
		243		212

A final dividend in respect of 2008 of US¢51.00 (2007: US¢45.00) per share amounting to a total of US$318 million (2007: US$279 million) is proposed by the Board. The dividend proposed will not be accounted for until it has been approved at the Annual General Meeting. The net amount after deducting the Company's share of the dividends payable on the shares held by subsidiary undertakings of US$138 million (2007: US$120 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2009.

12.	Notes to Consolidated Cash Flow Statement
			2008				2007
	(a)	Purchase of subsidiary undertakings	US$m				US$m
		Intangible assets	124				2
		Tangible assets	226				3
		Non-current debtors	1				1
		Current assets	24				31
		Long-term borrowings	(28)				-
		Deferred tax liabilities	(75)				-
		Pension liabilities	-				(1)
		Non-current creditors	-				(1)
		Current liabilities	(19)				(21)
		Net assets	253				14
		Adjustment for minority interests	(28)				(2)
		Net assets acquired	225				12
		Goodwill	11				15
		Total consideration	236				27
		Adjustment for carrying value of associates
		and joint ventures	(26)				(4)
		Adjustment for fair value relating to previously held
		interests	(10)				-
		Cash and cash equivalents of subsidiary undertakings
		acquired	(9)				(2)
		Net cash outflow	191				21
		Increase in interest in Jardine Strategic	25				138
		Increase in interest in Mandarin Oriental	2				-
		Increase in interest in Jardine Cycle & Carriage	137				24
		Increase in interests in other subsidiary undertakings	86				1
			441				184

		Net cash outflow in 2008 of US$191 million included US$156 million for PT United Tractors' acquisition of a company which holds coal mining rights in Central Kalimantan and US$24 million for increasing Astra's interest in PT Marga Mandalasakti from 34% to 63%. Net cash outflow in 2007 of US$21 million primarily related to Jardine Motors Group's acquisition of dealerships in the United Kingdom.
		Increase in interests in other subsidiary undertakings included US$42 million for Dairy Farm's acquisition of an additional interest in PT Hero Supermarket under a put option, and US$20 million and US$21 million for Astra's increased interests in PT Astra Otoparts and PT United Tractors respectively.
	(b)	Purchase of associates and joint ventures in 2008 included US$77 million for Jardine Cycle & Carriage's acquisition of a 20% interest in Truong Hai Automotive Corporation, and US$97 million and US$21 million for Jardine Strategic's increased interest in Hongkong Land and investment in Jardine Rothschild Asia Capital respectively. Purchase of associates and joint ventures in 2007 included Jardine Strategic's increased interest in Hongkong Land of US$104 million.
	(c)	Purchase of other investments in 2008 included US$156 million for Astra's purchase of securities, and US$22 million and US$19 million for Jardine Strategic's purchase of shares in Paris Orléans and bonds in Hongkong Land respectively. Purchase of other investments in 2007 included US$61 million for Astra's purchase of securities.

			2008	2007
	(d)	Sale of subsidiary undertakings	US$m	US$m
		Intangible assets	1	1
		Tangible assets	4	1
		Associates and joint ventures	2	-
		Non-current debtors	2	-
		Deferred tax assets	4	-
		Current assets	101	4
		Current liabilities	(33)	(1)
		Net assets	81	5
		Adjustment for minority interests	(24)	-
		Net assets disposed of	57	5
		Profit on disposal	3	1
		Sale proceeds	60	6
		Adjustment for carrying value of associates and joint
		ventures	(34)	-
		Cash and cash equivalents of subsidiary undertakings
		disposed of	(59)	-
		Net cash (outflow)/inflow	(33)	6

		Sale proceeds in 2008 of US$60 million included US$48 million from Astra's sale of a 15% interest in PT Pantja Motor which reduced its effective interest from 65% to 50%.
	(e)	Sale of associates and joint ventures in 2008 included US$21 million from Dairy Farm's sale of its 50% interest in Olive Young. Sale of associates and joint ventures in 2007 included US$22 million from Jardine Pacific's sale of its 50% interest in Colliers Halifax, US$71 million from Mandarin Oriental's sale of its 25% interest in Mandarin Oriental, New York, and US$12 million and US$15 million from Jardine Cycle & Carriage's sale of its interests in Ampang Investments and UMF respectively.
	(f)	Sale of other investments in 2008 mainly comprised Astra's sale of securities. Sale of other investments in 2007 included US$54 million from Jardine Strategic's partial disposal of its interest in The Bank of N.T. Butterfield & Son, US$11 million from disposal of shares in CNAC and US$46 million from a capital distribution from Edaran Otomobil Nasional followed by sale of that investment.

13.	Capital Commitments and Contingent Liabilities
			2008		2007
			US$m		US$m
	Capital commitments		483		313

Various Group companies are involved in litigation arising in the ordinary course of their respective businesses. Having reviewed outstanding claims and taking into account legal advice received, the Directors are of the opinion that adequate provisions have been made in the financial statements.

14.	Post Balance Sheet Event   In January 2009, Mandarin Oriental announced that it had entered into an agreement to sell its 50% interest in Mandarin Oriental, Macau for US$90 million. The sale is expected to complete in May 2009 and will result in a profit after tax of approximately US$75 million.

 

The final dividend of US¢51 per share will be payable on 13th May 2009, subject to approval at the Annual General Meeting to be held on 7th May 2009, to shareholders on the register of members at the close of business on 20th March 2009, and will be available in cash with a scrip alternative. The ex-dividend date will be on 18th March 2009, and the share registers will be closed from 23rd to 27th March 2009, inclusive. Shareholders will receive their cash dividends in United States Dollars, unless they are registered on the Jersey branch register where they will have the option to elect for sterling. These shareholders may make new currency elections for the 2008 final dividend by notifying the United Kingdom transfer agent in writing by 24th April 2009. The sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing on 29th April 2009. Shareholders holding their shares through The Central Depository (Pte) Limited ('CDP') in Singapore will receive United States Dollars unless they elect, through CDP, to receive Singapore Dollars or the scrip alternative.

	The Jardine Matheson Group
	Founded as a trading company in China in 1832, Jardine Matheson is today a diversified business group focused principally on Asia. Its businesses comprise a combination of cash generating activities and long-term property assets.
	Jardine Matheson holds interests directly in Jardine Pacific (100%), Jardine Motors (100%) and Jardine Lloyd Thompson (32%), while its 81%-held Group holding company, Jardine Strategic, is interested in Hongkong Land (49%), Dairy Farm (78%), Mandarin Oriental (73%) and Jardine Cycle & Carriage (68%), which in turn has a 50% shareholding in Astra. Jardine Strategic also has a 53% shareholding in Jardine Matheson and a 21% stake in Rothschilds Continuation, the merchant banking house.
	These companies are leaders in the fields of engineering and construction, transport services, insurance broking, property investment and development, retailing, restaurants, luxury hotels, motor vehicles and related activities, financial services, heavy equipment, mining and agribusiness.
	Incorporated in Bermuda, Jardine Matheson Holdings Limited has its primary share listing in London, with secondary listings in Bermuda and Singapore. Jardine Matheson Limited operates from Hong Kong and provides management services to Group companies.

		- end -
	For further information, please contact:
	Jardine Matheson Limited
	James Riley		(852) 2843 8229
	GolinHarris
	Kennes Young		(852) 2501 7987

Full text of the Preliminary Announcement of Results and the Preliminary Financial Statements for the year ended 31st December 2008 can be accessed through the Internet at 'www.jardines.com'.

ENDFR SSLFUISUSEFD

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