2018 Preliminary Announcement of Results

To:    Business Editor                                                                           28th February 2019

                                                                                                             For immediate release

 

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

 

Jardine Strategic Holdings Limited

2018 Preliminary Announcement of Results

 

Highlights

·    Underlying earnings per share* up 16%

·    Full-year dividend up 6%

·    Astra, Hongkong Land and Jardine Cycle & Carriage performed well

·    Dairy Farm Food business restructuring and repositioning announced

·    Conditional sale of Jardine Lloyd Thompson

 

"After a good performance in 2018 driven primarily by Astra, Hongkong Land and Jardine Cycle & Carriage, we expect the Group to face more challenging conditions in 2019 due to economic uncertainties affecting consumer sentiment and commodity prices."

 

Ben Keswick, Chairman and Managing Director

 

Results

Year ended 31st December
	2018         US$m	2017     US$m Restated†		Change %
Gross revenue including 100% of Jardine Matheson, associates and joint ventures	92,348	83,001		+11
Revenue	34,094	30,848		+11
Underlying profit* before tax	4,712	4,040		+17
Underlying profit* attributable to shareholders	1,784	1,570		+14
Profit attributable to shareholders	1,836	4,305		-57
	US$	US$		%
Underlying earnings per share*	3.14	2.71		+16
Earnings per share	3.23	7.44		-57
Dividends per share	0.34	0.32		+6
Net asset value per share#	68.46	59.08		+16
*  The Group uses 'underlying profit' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in note 40 to the financial statements.  Management considers this to be a key measure which provides additional information to enhance understanding of the Group's underlying business performance. †  The accounts have been restated due to changes in accounting policies upon adoption of IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from Contracts with Customers', as set out in note 1 to the financial statements. #  Net asset value per share is calculated on a market value basis.

The final dividend of US¢24 per share will be payable on 15th May 2019, subject to approval at the Annual General Meeting to be held on 9th May 2019, to shareholders on the register of members at the close of business on 15th March 2019 and will be available in cash with a scrip alternative.

 

Jardine Strategic Holdings Limited

 

Preliminary Announcement of Results

For The Year Ended 31st December 2018

 

Overview

The Group produced a good overall result for the year, with underlying net profit up 14% compared with the prior year.  There were strong performances from Astra and Hongkong Land, as well as an improved performance from Jardine Cycle & Carriage's non-Astra businesses, while Dairy Farm and Jardine Matheson's directly held businesses were relatively flat against the prior year. 

 

Performance

The Group's gross revenue for 2018, including 100% of revenue from Jardine Matheson, associates and joint ventures, rose by 11% from US$83.0 billion to US$92.3 billion, while the Group's consolidated revenue for 2018 was US$34.1 billion, an increase of 11%.  Underlying profit before tax for the year was up 17% at US$4,712 million.  The underlying profit attributable to shareholders increased by 14% to US$1,784 million, with underlying earnings per share 16% higher at US$3.14.  

Net profit including non-trading items for the year was US$1,836 million, which included the Group's US$719 million share of the net gain in property valuations - principally arising from Hongkong Land's investment properties in Hong Kong - offset by the Group's US$352 million share of a restructuring charge in respect of Dairy Farm's Southeast Asia Food business and a net loss of US$377 million due to unrealised fair value losses related to non-current investments.  This compares with US$4,305 million in 2017, which reflected the Group's US$2,326 million share of increases in property valuations and US$409 million of other net non-trading gains.  

Within Jardine Matheson's directly-held businesses, Jardine Pacific saw higher contributions from Jardine Schindler and JEC, and a steady performance at Gammon, offset by weaker performances by Jardine Restaurants and HACTL.  There was a higher contribution from the interest in Greatview, which was acquired in June 2017.  Jardine Motors' business in Hong Kong and Macau produced steady earnings, but weaker performances were recorded in mainland China and the United Kingdom.  Jardine Lloyd Thompson delivered both revenue and profit growth, with particularly good organic growth in its Global Specialty division.

 

Hongkong Land produced a record performance with continuing earnings strength from investment properties.  The contribution from development properties in mainland China was broadly in line with last year, while higher profits were recognised in Singapore.

 

At Dairy Farm, while results in four out of five business formats showed improvement, the structural challenges in Food continued to erode performance at an increased rate.  Overall sales increased and underlying net profit was up from the prior year, which had included costs incurred for the exit from various underperforming stores and stock clearance in the Southeast Asia Food business.  Results in 2018 benefitted from particularly strong results from the Health and Beauty business and an increased contribution from Convenience stores, which were offset by further deterioration in performance from the Food business led by the supermarket and hypermarket formats.  A significant (largely non-cash) restructuring charge was incurred in respect of the Southeast Asia Food business following the completion of a detailed strategic review, which concluded that Southeast Asia Food was not viable in its current form.

 

Mandarin Oriental delivered a good performance for the year, notably in Hong Kong and Singapore.  Mandarin Oriental Hyde Park, London is on schedule to reopen fully in April 2019.

 

In Southeast Asia, Jardine Cycle & Carriage saw an improvement in its performance over the prior year, with strong results in its Direct Motor Interests and Other Strategic Interests.  Thaco performed well, due mainly to higher unit sales and improved margins.  There was an increase in profits at Siam City Cement due to an improved domestic performance and lower one-off expenses, and Jardine Cycle & Carriage received a first full year of dividends in respect of its stake in Vinamilk.

 

Astra achieved record results in local currency terms in 2018 and grew its revenues and income over 2017, with increased contributions from its heavy equipment, mining, construction and energy, and financial services businesses, which more than offset a lower contribution from the agribusiness segment.  Astra continues to expand in the toll roads, energy, minerals and property areas and is also now focussing on providing digital financial services. 

 

The Group's financial position remains strong with shareholders' funds up 3% at US$31.5 billion at the year end.  Consolidated net debt excluding financial services companies was US$6 billion at 31st December 2018, representing gearing of 10%, up from 6% at the end of 2017 due to investments in the year by its businesses, including Hongkong Land projects and the acquisition of a gold mine in Indonesia by United Tractors.

 

The Board is recommending a final dividend of US¢24 per share, which produces a full-year dividend of US¢34 per share, up 6% from the prior year.

 

 

 

Strategic Developments

The Group has a unique advantage in having a strong presence in two of the fastest growing regions in the world: Greater China and Southeast Asia.

 

Greater China provides the largest contribution to the Group, underpinned by the Group's significant presence in Hong Kong.  Mainland China is also a key market for the Group, making a 15% contribution to profits in the year, and the Group is focused on growing its businesses there further.  Hongkong Land is making good progress in finding new development sites there, with a total of six new sites secured in 2018.  WF CENTRAL, its luxury retail and hotel complex in Beijing, which was opened in late 2017, is performing in line with expectations and the Mandarin Oriental in Beijing is scheduled to open in the coming weeks.  The Group's affiliates in mainland China, Zhongsheng and Yonghui, both had a very good year in their underlying businesses.  

 

Southeast Asia is the other area of key focus for the Group.  During the year Astra made a US$150 million investment in GOJEK, Indonesia's leading multi-platform technology group, in order to accelerate the group's digital initiatives.  Astra also formed a joint venture in June 2018 with WeLab to provide mobile lending products.  Hongkong Land secured six new projects in the region, in Indonesia, Thailand, Singapore and the Philippines.

 

In both mainland China and Southeast Asia, the Group is fortunate that significant long-term consumption growth is forecast, particularly from the growing and increasingly affluent middle class.  This plays to the strengths of the Group's businesses, which are associated with some of the world's top brands.

 

To take advantage of this, the Group continues to invest for growth and to pursue its strategy of building significant stakes in strong companies that are benefitting from the opportunities offered by the economic development of the region and the growth of the middle classes.  The Group's aim is to be the partner of choice for associates or joint ventures and to grow those businesses over time by developing strong relationships which add value through the Group's role as a supportive shareholder to entrepreneurs or leading management teams.  

 

The sale of the Group's interest in Jardine Lloyd Thompson to Marsh & McLennan Companies is expected to complete in Spring 2019, conditional upon regulatory approvals.  The proceeds of some US$2 billion from this sale will further enhance the Group's ability to take advantage of opportunities in its core markets across Asia.

 

Following the completion of a detailed strategic review by Dairy Farm, a transformation programme is now underway and, given its scale and complexity, is likely to take several years to complete.  A new leadership team, including enhanced functional leadership in key disciplines, is in place and is implementing a series of strategic business priorities, including reorganising the businesses into a new streamlined and centralised structure with North Asia and Southeast Asia Divisions.  Decisive action is also being taken to transform the supermarket and hypermarket business, especially in Southeast Asia, in order to reset and reposition it so that it can compete more effectively. 

 

Dairy Farm's investment in key strategic partnerships also continues to deliver good returns, with Maxim's and Yonghui both enjoying sales growth and profit expansion in their core operations during the year.  The group also entered into a partnership with Robinsons Retail in the Philippines and took full ownership of Rose Pharmacy. 

 

Following a review by Mandarin Oriental of the strategic options for the future of The Excelsior in Hong Kong, the decision has been taken to close the hotel from 31st March 2019 and redevelop it as a commercial property, with the project expected to complete in 2025.  The group signed and announced seven new management contracts in the year.  In 2019 the group has opened its first two hotels in the Middle East, in Doha and Dubai.

 

The group's first property in Beijing, Mandarin Oriental Wangfujing, is expected to open in the coming weeks as well as potentially a second hotel in Beijing in the next 12 months.

 

Our existing businesses remain focused on accelerating the transition to the digital economy.  The Group is also benefitting from the increasing adoption of technology to support internal initiatives, as it focuses on meeting its customers' expectations as they change and providing them with the best possible service.

 

People

The strong performances across our businesses in 2018 are a reflection of the hard work, dedication and professionalism of the Group's employees, for which we are most grateful. Julian Hui and Dr George Koo retired from the Board at the Company's Annual General Meeting in May 2018.  We would like to thank them both for their significant contribution to the Company over many years.  We welcomed Lord Powell of Bayswater to the Board in May 2018.  

 

Sir Henry Keswick retired from the Board on 31st December 2018. We would like to record our gratitude for the significant contribution he made over many decades, through his experience, insight and advice, to the development of the Group.

 

Business Review

 

Jardine Matheson

Jardine Matheson achieved an underlying profit before tax for the year of US$4,931 million, an increase of 15%.  The underlying profit attributable to shareholders was up 10% at US$1,703 million, with underlying earnings per share were also 10% higher at US$4.53.  The profit attributable to shareholders for the year was US$1,732 million, benefitting mainly from an increase in the value of Hongkong Land's investment property portfolio, offset by a restructuring charge relating to Dairy Farm's Southeast Asia food business and the net loss due to unrealised fair value losses related to non-current investments.  This compares with US$3,943 million in 2017, which benefitted from increases in property values.

 

•    Jardine Pacific

Jardine Pacific produced an underlying net profit of US$164 million, which was slightly higher than 2017.  The net profit after non-trading gains was US$187 million.

 

Within its engineering and construction activities, Jardine Schindler and JEC both performed well, with JEC seeing strong profit growth from its Hong Kong engineering operations.  Gammon's performance was broadly in line with last year and its order book remains strong.  Jardine Restaurants reported a lower result overall due to challenging trading conditions in Taiwan and Vietnam which more than offset an improved performance in Hong Kong.  HACTL's results were impacted by the loss of a significant customer but cargo throughput growth was in line with market.  

 

Hong Kong-listed Greatview, in which a 28% stake was acquired by the Company in June 2017, saw steady growth in both mainland China and internationally.  

 

•    Jardine Motors

Jardine Motors produced an underlying net profit in 2018 of US$175 million, 5% lower than the same period in 2017.  After taking into account non-trading gains, the net profit was US$177 million.

 

Zung Fu in mainland China reported lower profit due to reduced margins despite higher new car sales.  Hong Kong and Macau achieved strong new car sales.  The United Kingdom dealerships reported weaker results, with lower vehicle unit sales. 

 

The Group also benefitted from a strong contribution from Zhongsheng, one of mainland China's leading motor dealership groups, reflecting increased sales and better margins through to the end of the first six months of the year. Results for the full year, which have not yet been announced, will be included in the Group's 2019 results. The Company holds a 20% shareholding in Zhongsheng .

 

•    Jardine Lloyd Thompson

JLT's total revenue for 2018 was US$1,931 million, an increase of 5% in its reporting currency, with 5% organic growth.  Underlying profit before tax was up 25% in its reporting currency at US$311 million.  After adjusting for the costs of a business transformation programme which the group began in the year and on conversion into US dollars, JLT's contribution to the Group's underlying profit in 2018 was 16% higher than in 2017.  

 

During the year JLT undertook a reorganisation into three global divisions - Reinsurance, Specialty and Employee Benefits.  All three global divisions achieved organic revenue growth year on year, including organic revenue growth of 7% in Global Specialty.

 

The recommended cash acquisition by Marsh & McLennan Companies, which was announced in September 2018 and approved by shareholders in November 2018, is expected to complete in Spring 2019, subject to regulatory approvals.  The Group will receive net proceeds of US$2.1 billion for its stake, with an estimated gain of US$1.5 billion.

 

Hongkong Land

Hongkong Land achieved a second consecutive year of record underlying profit, with a 9% increase to US$1,036 million.  There were strong performances from both investment properties and development properties.  The profit attributable to shareholders of US$2,457 million included net revaluation gains of US$1,421 million recorded on its investment properties, principally in Hong Kong.  This compares to US$5,614 million in 2017, which included net revaluation gains of US$4,667 million.  The group remains well-financed with net debt of US$3.6 billion at the year end, up from US$2.5 billion at the end of 2017.  Net gearing rose to 9%.  Net debt will move modestly higher during the first half of 2019 for land purchases which have already been committed.

 

The investment properties portfolio benefitted from higher overall average rents and positive rental reversions in Hong Kong and Singapore.  In the development properties business, the profit contribution from mainland China was broadly in line with the prior year, despite fewer units being handed over, but the attributable interest in contracted sales was 42% higher than 2017, due to a greater number of sales launches.  Higher profits were recognised in Singapore following the completion of the 1,327-unit Sol Acres executive condominium development.  A total of 12 new sites were secured for development during the year, including six projects in mainland China and projects in Indonesia, Thailand, Singapore and the Philippines.  This compares with a total of 10 new projects in 2017.

 

Hongkong Land's Central office portfolio has experienced positive rental reversions.  However Central office rental growth is moderating as demand, especially from mainland Chinese financial institutions, has slowed.  The Hong Kong retail portfolio remains effectively fully occupied. 

 

Dairy Farm

Most store formats reported improved performance in the year, with Health and Beauty delivering particularly strong results, but there was increasing weakness in Food.  The performance of the Hong Kong Food business softened over the year and the supermarket and hypermarket business across Southeast Asia deteriorated further.  Home Furnishings was broadly in line with the same period last year.  Sales for the year by the group's subsidiaries were 4% higher than 2017 at US$11.7 billion.  Total sales, including 100% of associates and joint ventures, were up marginally at US$22.0 billion.  

 

The underlying profit attributable to shareholders was 5% higher at US$424 million as the previous year's results had included costs incurred for the exit from various underperforming stores and stock clearance in the Southeast Asia Food business.

 

Results include significantly higher store support centre costs reflecting the increased investment in management and functional capabilities necessary to take the business forward.  The profit contribution from associates was down from the prior year, with a record result from Maxim's but a decrease in Yonghui's contribution, due to the impact of losses from new retail formats and the cost of a new employee incentive scheme, as well as the fact that only nine months of Yonghui's 2018 performance have been included in Dairy Farm's results, since its 2018 full year results announcement has not yet been released.  

 

The net non-trading charge for the year totalled US$332 million.  This included a US$453 million restructuring charge for the Food business in Southeast Asia.  Following the completion of the detailed strategic review, which concluded that the business was not viable in its current form, impairments have been made against the goodwill and assets associated with the Giant business and the leases of the underperforming stores have been provided for as part of the overall restructuring costs.  Net cash costs included in the restructuring charge are expected to be less than US$50 million.

 

Dairy Farm has now embarked on a multi-year transformation programme to reset the future direction and competitiveness of the business.  A new leadership team, with the right depth and breadth of experience and functional expertise, is now largely in place.  During the year, this team has focused on developing and implementing new strategies and business performance initiatives.  It has also reorganised the businesses into a new streamlined and centralised structure, with regional hubs based in Hong Kong and Singapore and the addition of enhanced functional leadership in key disciplines. 

 

There were several significant corporate developments during the year.  In November, Dairy Farm entered into a partnership with the Robinsons Retail, the Philippines' third largest retail business, whereby Dairy Farm's Food business in the Philippines has become part of Robinsons Retail, with Dairy Farm now having a 20% interest in the combined business. This new partnership positions the Group well to take advantage of the growing opportunities in the Philippines.

 

In December, Dairy Farm completed the acquisition of the remaining 51% of Rose Pharmacy from its founders, and now owns 100% of the business. This will allow Dairy Farm to drive the next phase of the development of the business.

 

Mandarin Oriental

Mandarin Oriental had a positive year, driven by strong performances from Hong Kong and Singapore.  Results across the rest of Asia were generally higher, but there were mixed results from Europe and there was flat performance in the United States.  Results also benefitted from the receipt of the early termination fees in respect of the management contracts for the Las Vegas and Atlanta hotels.  The impact of the fire in London in June 2018 was mitigated by insurance proceeds.  Underlying profit for the year was 19% higher at US$65 million, compared with US$55 million in 2017.  After taking into account a net non-trading loss primarily relating to accelerated asset write-downs due to the planned closure of The Excelsior, profit attributable to shareholders was US$44 million, compared with US$55 million in 2017.  While the group's results will be adversely affected until the property reopens as a commercial building (The Excelsior contributed US$24 million to underlying profit in 2018), the decision to close the hotel reflects strong commercial property values in Hong Kong and the expected higher yield associated with a commercial building at a time when the hotel requires significant investment. 

 

Following the fire in June 2018, repairs are nearing completion at Mandarin Oriental Hyde Park, London and the hotel is on schedule to reopen fully in April 2019.  While discussions with the group's insurers have not yet been concluded, interim cash payments received during 2018 from the insurers have financed the replacement of fixed assets and provided some compensation for the loss of profits so far.  The jointly-owned Hotel Ritz, Madrid closed at the end of February 2018 to commence an extensive renovation.  

 

Jardine Cycle & Carriage

Jardine Cycle & Carriage's underlying profit attributable to shareholders was 12% higher at US$858 million, but profit attributable to shareholders fell by 55% to US$420 million, after accounting for net non-trading losses of US$438 million, principally unrealised fair value losses related to non-current investments.  Astra's contribution to underlying profit of US$719 million was up 15%.  The group's Direct Motor Interests contributed US$145 million, 19% higher than 2017, while the contribution from its Other Strategic Interests rose by 107% to US$71 million.

 

Within the group's Direct Motor Interests, Cycle & Carriage Singapore performed well as it grew its earnings by 8% to US$62 million due to improved margins, despite a fall in passenger car sales.  The 25%-owned Truong Hai Auto Corporation performed well, with a 29% increase in its profit contribution to US$73 million, due mainly to higher unit sales and improved margins.  In Malaysia, 59%-owned Cycle & Carriage Bintang contributed a US$2 million profit, mainly comprising dividend income from its investment in Mercedes-Benz Malaysia, while 46%-owned Tunas Ridean in Indonesia recorded a 17% higher profit contribution of US$18 million, reflecting improved performances across all of its segments. 

 

Within Other Strategic Interests, the contribution by 25.5%-held Siam City Cement in Thailand was US$20 million, due to an improved domestic performance and lower one-off expenses, partially offset by lower contributions from its regional operations.  The profit of 24.9%-held Refrigeration Electrical Engineering Corporation in Vietnam of US$19 million was 39% higher due mainly to strong contributions from its power and water investments.  A dividend of US$32 million was recognised on Jardine Cycle & Carriage's 10.6% shareholding in Vinamilk in Vietnam, compared to US$9 million in 2017.

 

Astra

Astra reported net profit under Indonesian accounting standards of Rp21.7 trillion, some US$1.5 billion, 15% higher in its local currency terms.  The group's net debt, excluding financial services subsidiaries, was Rp13.0 trillion (equivalent to US$901 million) at 31st December 2018, down from a net cash position of Rp2.7 trillion (equivalent to US$196 million) at the end of 2017, due mainly to the group's investments in its toll road businesses, a gold mining business and GOJEK.

 

Net income from Astra's automotive division fell slightly to US$597 million, mainly due to lower operating margins despite higher automotive sales.  Astra's car sales were 1% higher at 582,000 units in a wholesale market which was 7% higher in the year, but increased competition resulted in a decline in market share from 54% to 51%.  Astra Honda Motor's market share was flat at 75%, although its domestic sales of motorcycles increased by 9% to 4.8 million units while the wholesale market increased by 8%.  Astra Otoparts, the group's automotive components business, saw net income increase by 11% to US$43 million.

 

Net income from financial services increased by 28% to US$337 million, due to improved contributions from its consumer finance, banking and general insurance businesses.  The net income contribution from the group's car-focused finance companies increased by 26% to US$86 million and the contribution from motorcycle-focused Federal International Finance was 16% higher at US$162 million.  The group's consumer finance businesses overall saw a 1% decrease in the amount financed to US$5.6 billion during the year, due to a reduction in the amount financed in the low-cost car segment. 

 

The net income contribution from the group's heavy equipment-focused finance operations increased by 30% to US$6 million, partly due to lower loan loss provisions, while Permata Bank, in which Astra holds a 44.6% interest, reported net income of US$63 million, compared to US$56 million in 2017.

 

General insurer Asuransi Astra Buana saw its net income increase by 4% to US$73 million, and life insurance joint venture, Astra Aviva Life, continued to acquire new individual life customers and participants for its corporate employee benefits programmes.

 

United Tractors, which is 59.5%-owned, reported net income 50% higher at US$775 million, mainly due to improved performances in its construction machinery, mining contracting and mining operations, all of which benefitted from higher coal prices compared with 2017.  Within United Tractors' construction machinery business, Komatsu heavy equipment sales were up 29%, and parts and service revenues were also higher.  The mining contracting operations of Pamapersada Nusantara recorded an 11% increase in coal production, while overburden removal was up 22%.  United Tractors' coal mining subsidiaries reported an 11% increase in coal sales.  Agincourt Resources, in which United Tractors acquired a 95% interest in December 2018 and which operates a gold mining concession in Sumatra, reported gold sales of 35,000 oz in December 2018.  Acset Indonusa, United Tractor's 50.1%-owned general contractor reported a 88% decrease in net income to US$1 million, mainly due to increased financing costs. US$112 million of new construction projects were secured during 2018.

 

25%-owned Bhumi Jati Power is in the process of constructing two 1,000MW power plants in Central Java, which are scheduled to start commercial operation in 2021.

 

Astra Agro Lestari, which is 80%-owned, reported a 27% decline in net income to US$101 million, primarily due to a fall in crude palm oil prices. This more than offset a 30% increase in crude palm oil and derivatives sales to 2.3 million tonnes.

 

The group's infrastructure and logistics division reported a net income of US$14 million in 2018, compared to a net loss of US$17 million in the prior year. This was mainly due to improved earnings from the Tangerang-Merak toll road and Serasi Autoraya, as well as the inclusion in the prior year's results of a one-off loss on the disposal of Astra's 49% interest in PAM Lyonnaise Jaya.  Astra has interests in 302km of operational toll roads along the Trans-Java network, with a further 11km in Greater Jakarta under construction.  Serasi Autoraya's net income increased by 50% to US$21 million, primarily due to improved operating margins in its car leasing and rental businesses.  Net income from the group's information technology division was 5% higher at US$15 million.

 

The group's property division reported a 28% lower net profit at US$11 million under local accounting standards, due mainly to reduced development earnings recognised from its Anandamaya Residences project as a result of lower percentage completion in its final stages of construction.

 

Outlook

After a good performance in 2018 driven primarily by Astra, Hongkong Land and Jardine Cycle & Carriage, we expect the Group to face more challenging conditions in 2019 due to economic uncertainties affecting consumer sentiment and commodity prices.

 

Ben Keswick

Chairman and Managing Director

 

 

Jardine Strategic Holdings Limited Consolidated Profit and Loss Account for the year ended 31st December 2018
	2018											2017
Underlying business performance US$m			Non- trading items US$m				Total US$m					Underlying business performance US$m restated					Non- trading items US$m restated				Total US$m restated
Revenue (note 2)		34,094				-					34,094					30,848				-					30,848
Net operating costs (note 3)		(30,386)				(863)					(31,249)					(27,931)				340					(27,591)
Change in fair value of investment properties		-				1,236					1,236					-				4,701					4,701
Operating profit		3,708				373					4,081					2,917				5,041					7,958
Net financing charges		(306)				-					(306)					(153)				-					(153)
Share of results of Jardine Matheson (note 4)		228				(17)					211					251				120					371
Share of results of associates and joint ventures (note 5)
- before change in fair value of investment properties		1,082				1					1,083					1,025				(4)					1,021
- change in fair value of investment properties		-				189					189					-				(32)					(32)
		1,082				190					1,272					1,025				(36)					989
Profit before tax		4,712				546					5,258					4,040				5,125					9,165
Tax (note 6)		(923)				11					(912)					(748)				(1)					(749)
Profit after tax		3,789				557					4,346					3,292				5,124					8,416
Attributable to:
Shareholders of the Company (notes 7 & 9)		1,784				52					1,836					1,570				2,735					4,305
Non-controlling interests		2,005				505					2,510					1,722				2,389					4,111
		3,789				557					4,346					3,292				5,124					8,416
		US$									US$					US$									US$
Earnings per share (note 8)
- basic		3.14									3.23					2.71									7.44
- diluted		3.13									3.23					2.71									7.44