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Jardine Matheson Hldgs Ltd  -  JAR   

Half Yearly Results

Released 10:22 04-Aug-2017

RNS Number : 9965M
Jardine Matheson Hldgs Ltd
04 August 2017
 

 

 

To:    Business Editor                                                                           4th August 2017

                                                                                                             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 Matheson Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2017

 

Highlights

·     Underlying profit up 20%

·     Good performances from most Group companies

·     Strong financial position maintained

 

"Following a first half with good trading performances across the Group, the level of profit growth in the second half is likely to be tempered due to fewer residential completions expected in Hongkong Land and price competition in a number of the Group's automotive markets."

 

Sir Henry Keswick, Chairman

 

Results

 

                                                                                                                                                                          (unaudited)
Six months ended 30th June
 
 
 
2017 US$m
2016
 US$m
Change
%
Gross revenue including 100% of associates and joint ventures
38,072 
   34,569
+10
Revenue
19,430
 18,026
+8
Underlying profit* attributable to shareholders
765
636
+20
Profit attributable to shareholders
2,078
984
+111
Shareholders’ funds
23,886
 21,800
+10
 
US$
US$
%
Underlying earnings per share*
2.04
1.70
+20
Earnings per share
5.54
2.63
+111
Net asset value per share
63.22
58.15
+9
 
US¢
US¢
%
Interim dividend per share
40.00
38.00
+5
* 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 7 to the condensed financial statements. Management considers this to be a key measure which provides additional information to enhance understanding of the Group’s underlying business performance.
   At 30th June 2017 and 31st December 2016, respectively. Net asset value per share is based on the book value of shareholders’ funds.

The interim dividend of US¢40.00 per share will be payable on 19th October 2017 to shareholders on the register of  members at the close of business on 25th August 2017 and will be available in cash with a scrip alternative.

 

Jardine Matheson Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2017

 

Overview

Jardine Matheson produced strong growth in underlying profit for the first half of 2017 with good performances from many of its businesses.

 

Results

The Group's underlying profit for the first six months of 2017 rose 20% to US$765 million, and underlying earnings per share were up 20% at US$2.04.  The revenue of the Group for the period was 8% higher at US$19.4 billion, while revenue, including 100% of associates and joint ventures, was up 10% at US$38.1 billion.

 

Hongkong Land's commercial interests performed well and it recorded a higher level of sale completions in its development properties.  Astra benefited from better results from across its businesses, while Permata Bank returned to profit.  Jardine Pacific saw improvements in most of its operations, and Jardine Motors continued to trade well in mainland China.  JLT's earnings increased despite a challenging trading environment.  Dairy Farm's trading was mixed, although it did achieve higher profit contributions from certain businesses.  Mandarin Oriental's results were impacted primarily by its London hotel renovation, while the contributions from Jardine Cycle & Carriage's non-Astra interests were lower.

 

Non-trading items in the first half represented a gain of US$1,313 million, primarily US$195 million in respect of profits on property disposals and US$1,097 million from revaluations of investment properties, compared with a non-trading gain of US$348 million in the first half of 2016.  Accordingly, the Group's profit attributable to shareholders for the period was US$2,078 million for the six months under review, compared with US$984 million in 2016.

 

The Board has declared an increased interim dividend of US¢40.00 per share.

 

Business Developments

The Jardine Pacific business interests were expanded to include a 28% stake in Hong Kong-listed Greatview, which was acquired through Jardine Strategic in June.  Founded in mainland China, Greatview is the second-largest supplier of aseptic carton packaging in China and the third-largest globally.  Jardine Pacific will be supporting Greatview's continued development, particularly in new markets in Southeast Asia.

 

Jardine Motors benefited from the strong trading conditions in mainland China for both Zung Fu and Zhongsheng.  Following the redemption of convertible bonds issued by Zhongsheng, Jardine Strategic subscribed for additional shares in the company increasing its interest by some 5% to 20%.

 

JLT made further progress with the development of its Specialty business in the United States, with revenues more than doubling due to strong organic growth and a first contribution from the recently acquired Construction Risk Partners.

 

Hongkong Land's WF Central project in Wangfujing, Beijing is nearing completion, with the luxury retail component opening later this year and the Mandarin Oriental hotel following in 2018.  In Jakarta, the fifth tower at its Jakarta Land joint venture will be ready early next year, while its prime mixed-use complex in Phnom Penh has been completed.  In June, the group agreed to purchase a one-third interest in a development site within the Marina Bay Financial District in Singapore, which will be connected to its existing portfolio in the district.  In addition, the group has entered two new cities in mainland China with mixed-use development projects in Wuhan and Nanjing.

 

In July, Dairy Farm agreed to increase its ownership in Rustan's in the Philippines to 100% with the acquisition of the remaining 34% interest from its joint venture partner.  Dairy Farm is continuing to improve its appeal to customers across its range of formats through its investment in technology, supply chain infrastructure, stores and people.

 

Mandarin Oriental has announced a number of management contracts, including a hotel operating in Santiago, Chile, and three new hotels with branded residences being developed in Dubai, Honolulu and Melbourne which will open between 2020 and 2022.  Following an announcement in June, Mandarin Oriental is pursuing strategic options for its wholly-owned hotel, The Excelsior in Hong Kong, which include the possible sale of the property for redevelopment.

 

During the period under review, Jardine Cycle & Carriage supported a US$500 million rights issue by Siam City Cement, and subsequently increased its shareholding in the Thai cement manufacturer to 25.5%.

 

Astra returned to profit growth as its net profit rose 31% under Indonesian accounting standards.  Its automotive operations did well, despite increasing competition in the car market and soft demand for motorcycles, with its market shares rising to 56% for cars and 74% for motorcycles.  Improvements in Permata Bank enabled it to produce a profit following a challenging year in 2016, and in June it completed a further US$220 million rights issue.  Stronger commodity prices led to better performances from the group's heavy equipment and mining operations as well as its agribusiness activities.

 

People

Alex Newbigging is to join the Board with effect from 1st October 2017.

 

Outlook

Following a first half with good trading performances across the Group, the level of profit growth in the second half is likely to be tempered due to fewer residential completions expected in Hongkong Land and price competition in a number of the Group's automotive markets.

 

Sir Henry Keswick

Chairman

 

Operating Review

 

Jardine Pacific

Jardine Pacific achieved good earnings growth for the first half of 2017 with underlying profit up 26% at US$68 million following stronger performances in most of its operations.  Jardine Schindler benefited from continued growth in new installations and in its maintenance portfolio, while JEC's businesses in Hong Kong traded well.  Gammon's profit improved as the comparable period had been impacted by project timings.  Trading momentum continued for Jardine Restaurants in Taiwan and Vietnam, but Hong Kong remained challenging. Increased cargo throughput enabled HACTL to produce a better performance.  JTH Group's profit, however, was eroded in a weak IT market.  Jardine Pacific's business portfolio now includes a 28% stake in Greatview Aseptic Packaging Company Limited, which was acquired by Jardine Strategic in June 2017.

 

Jardine Motors

Jardine Motors produced an excellent result in the first half of 2017 with its underlying profit 45% higher at US$83 million.  The result includes a contribution from Zhongsheng, in which Jardine Strategic now holds a 20% interest.  Profit attributable to shareholders was US$286 million after accounting for a US$203 million gain, principally arising from the sale of a property by Zung Fu.  In mainland China, trading results from both Zung Fu and Zhongsheng were strong with good volume growth and improved margins.  Zung Fu's performance in Hong Kong was stable, and work is continuing on its new showroom and workshop facilities, which will complete in mid-2018.  In the United Kingdom, the performance was softer compared with 2016, when the results had also benefited from a gain on the sale of a dealership.

 

Jardine Lloyd Thompson

JLT produced a good performance in what remained challenging trading conditions throughout the period.  Total revenue was US$877 million, an increase of 11% in its reporting currency, representing 3% organic growth.  Underlying trading profit was US$140 million, an increase of 12% in its reporting currency, or 3% at constant rates of exchange.  JLT's Risk & Insurance businesses recorded revenue growth of 12%, with good performances in JLT Europe, JLT Re, Latin America, Asia and the United States.  The combined Employee Benefits businesses saw headline revenue growth of 8%, driven primarily by the strong performance of its UK Employee Benefits business, with revenues increasing by 9%, following its successful restructuring in 2016.

 

Hongkong Land

Hongkong Land's underlying profit attributable to shareholders for the first six months was US$517 million, up 32%.  The profit attributable to shareholders was US$3,125 million after accounting for a net gain of US$2,608 million arising on the revaluation of investment properties.  This compares with a profit of US$1,263 million in the first half of 2016, after a net revaluation gain of US$870 million.

 

The group's investment properties produced an increased contribution from the higher average rents achieved in Hong Kong.  Vacancy in Hongkong Land's Central office portfolio at 30th June 2017 was 1.5%, compared with 2.2% at the end of 2016, while the retail portfolio was almost fully occupied.  In Singapore, the performance of its office portfolio reflected the current relative surplus of market supply, although vacancy at the end of June was only 0.2% compared with 0.1% at the end of 2016, with a slight decrease in average rents.

 

Within Hongkong Land's development properties, being residential and mixed-use projects developed for sale in the short to medium-term, mainland China benefited from further sale completions and positive market sentiment leading to both an improved profit contribution and an increase in contracted sales.  At 30th June, the group had US$1,421 million in sold but unrecognized contracted sales, compared with US$1,083 million at the end of 2016.  Results from Singapore reflected the completion of the 699-unit LakeVille project, compared with no completions in the first half of 2016, and the pre-sales continuing in two other projects were satisfactory.  Progress is being made in the group's other developments in Indonesia and the Philippines.

 

Dairy Farm

Dairy Farm's sales for the period by its subsidiaries were marginally behind last year, although flat at constant exchange rates, as declines within supermarkets and hypermarkets in the Food division were offset by sales growth in all its other divisions.  Underlying net profit was up 6% at US$211 million, with reductions in the Food division being more than compensated for by strong results from Yonghui and Maxim's in addition to improved performances from the Health and Beauty and Home Furnishings divisions.

 

In the Food division, continuing softness in certain key markets led to sales within supermarkets and hypermarkets being 3% lower at constant exchange rates and profits declining.  The group's convenience store operations traded well, and strong growth in sales and profit were achieved by Yonghui in mainland China.  In the Health and Beauty division, progress was made in Hong Kong, Macau, mainland China and Indonesia, although more challenging conditions were experienced in Singapore and Malaysia.  In Home Furnishings, IKEA performed well, driven by strong sales in Taiwan and Indonesia.  In the Restaurants division, Maxim's delivered further growth as it continues to expand its regional presence and range of franchises.

 

Dairy Farm is continuing its programme of investment in its technology backbone, supply chain infrastructure, stores and people.  These initiatives are supporting the expansion of the range of fresh produce and own brand products on offer, together with the introduction of enhanced e-commerce offers in many of its businesses and the innovation of new store formats in most markets.  By improving the shopping experience of its customers and meeting their changing requirements, Dairy Farm is underpinning its future growth.

 

Mandarin Oriental

Mandarin Oriental's underlying profit for the first half was US$15 million, compared with US$25 million in 2016.  Profit attributable to shareholders was also US$15 million, while in 2016 it was US$23 million.  Earnings were lower during the period due to the impact of the ongoing phased renovation of its London hotel, which will complete in the second quarter of 2018, and the inclusion of a traditionally weaker first quarter result in its Boston hotel following its acquisition in April 2016.  While reduced contributions were seen from Jakarta and New York, these were offset by better performances in Paris, Munich and Washington.  Results across the rest of the portfolio, including Hong Kong, were broadly stable.

 

Mandarin Oriental currently operates 30 hotels and eight residences in 20 countries and territories, and has a strong pipeline of hotels and residences under development.  Following an announcement in June, the group is pursuing strategic options for The Excelsior, Hong Kong, which include the possible sale of the property for redevelopment.  The wholly-owned property, which is the group's only four star hotel, is situated on a prime commercial site that has approval for the development of a commercial building.

 

Jardine Cycle & Carriage

Jardine Cycle & Carriage reported an underlying profit for the period of US$375 million, up 13%, while its profit attributable to shareholders of US$399 million was up 22% with the benefit of non-trading gains.  Astra's contribution to the underlying profit rose 27% to US$315 million.  The contribution from the company's Direct Motor Interests was 20% lower at US$63 million, while Other Interests produced a contribution of US$8 million, down 46% compared with the first half of 2016.

 

The weaker result in the Direct Motor Interests reflects the impact of increasing competition, particularly for Truong Hai Auto Corporation in Vietnam.  While in Singapore, Cycle & Carriage's earnings improved, results were also lower for Cycle & Carriage Bintang in Malaysia and Tunas Ridean in Indonesia.  For the group's Other Interests, the 25.5%-held Siam City Cement reported a 69% decline in profit mainly due to lower prices and sales volumes in the Thai market and one-off expenses, partly offset by contributions from recent acquisitions in Sri Lanka and Vietnam.  Refrigeration Electrical Engineering Corporation in Vietnam, which is 22.9%-held, performed better with improvements in most of its businesses.

 

Astra

Astra reported a net profit equivalent to US$702 million under Indonesian accounting standards, up 31% in its reporting currency, with improvements seen in most businesses.  The group's automotive operations performed well with market shares for both cars and motorcycles rising, although it faced discount pressure as competition increased in the car market, and soft demand for motorcycles.  Better results were seen from financial services with a return to profit by Permata Bank.  Higher commodity prices benefited the heavy equipment and mining operations, as well as Astra's agribusiness activities.  Information technology, and infrastructure and logistics saw declines in earnings.

 

Net income from Astra's automotive business increased by 9%, largely due to improved car sales.  The wholesale market for cars in Indonesia grew marginally to 534,000 units, while the group's car sales were up 9% at 298,000 units, resulting in its market share rising from 51% to 56%.  The wholesale market for motorcycles contracted by 9% to 2.7 million units, while Astra Honda Motor's domestic sales fell by 7% to 2.0 million units, with its market share increasing from 73% to 74%.  Net income rose 30% in its components business, Astra Otoparts.

 

Within Astra's financial services business, net income rose 62% to US$153 million with better contributions from most activities.  The consumer finance businesses saw the aggregate amount financed increase by 8% to US$2.9 billion, while heavy equipment financing was up 68% to US$237 million.  Permata Bank's financial position stabilized and it reported a net income of US$47 million for the period compared with a net loss of US$62 million in the first half of 2016.  The bank benefited from an improvement in asset quality and the sale of a portfolio of its non-performing loans.  Asuransi Astra Buana, the group's general insurance company, reported net income up 24% due to higher underwriting and investment income, while Astra Aviva Life continued to grow its customer base.

 

United Tractors, which is 60%-owned, reported net income up 85% at US$257 million, as its businesses benefited from increased coal prices.  In construction machinery, Komatsu heavy equipment sales were up 69% and revenues from parts and service also rose.  Mining contracting within Pamapersada Nusantara recorded increases of 4% in coal production and 6% in overburden removal, although United Tractors' mining subsidiaries saw coal sales reduce by 18% to 3.6 million tonnes.  Acset Indonusa, the 50%-held general contractor, reported improved earnings and contracts worth US$536 million secured during the period.  Bhumi Jati Power, which is 25%-owned, is constructing two power plants in Central Java that are scheduled to start commercial operations in 2021, while Suprabari Mapanindo Mineral, an 80%-owned coking coal company in Central Kalimantan, is expected to start production by the end of 2017.

 

Astra Agro Lestari, which is 80%-owned, saw its net income rise during the period by 32% to US$78 million.  Revenue benefited from higher crude palm oil prices and increased production.  Average crude palm oil prices achieved were up 16%, while sales of crude palm oil and its derivatives rose 10% to 833,000 tonnes.

 

The contribution from Astra's infrastructure and logistics business was down 21% to US$8 million, mainly due to initial losses arising on toll roads and lower earnings from its water utility business following a 3% decrease in sales.  The group continues to develop its toll road activities which, including interests in 51km of greenfield sites, now extend to 353km.  Serasi Autoraya's net income rose due to higher net margins in its car leasing and rental business.

 

Astra's information technology business saw lower earnings as Astra Graphia reported net income down 25% at US$5 million, mainly due to lower revenue from its IT solutions business.  Within Astra's property activities, net income reflected improved development earnings recognized under Indonesian accounting standards on its Anandamaya Residences development, which will complete in 2018.

 

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Profit and Loss Account

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June

 

 

 

Year ended 31st December

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying

business

performance

US$m

 

Non-trading

items

US$m

 

 

 

 

 

 

Total

US$m

 

Underlying

business

performance

US$m

 

 

 

Non-trading

items

US$m

 

 

 

 

 

Total

US$m

 

Underlying

business

performance

US$m

 

 

 

Non-trading

items

US$m

 

 

 

 

 

Total

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (note 2)

 

19,430

 

 

 

-

 

 

 

19,430

 

 

 

18,026

 

 

 

-

 

 

 

18,026

 

 

 

37,051

 

 

 

-

 

 

 

37,051

 

Net operating costs (note 3)

 

(17,812)

 

 

 

222

 

 

 

(17,590)

 

 

 

(16,622)

 

 

 

(6)

 

 

 

(16,628)

 

 

 

(33,905)

 

 

 

93

 

 

 

(33,812)

 

Change in fair value of investment properties

 

-

 

 

 

2,694

 

 

 

2,694

 

 

 

-

 

 

 

986

 

 

 

986

 

 

 

-

 

 

 

2,573

 

 

 

2,573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1,618

 

 

 

2,916

 

 

 

4,534

 

 

 

1,404

 

 

 

980

 

 

 

2,384

 

 

 

3,146

 

 

 

2,666

 

 

 

5,812

 

Net financing charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- financing charges

 

(163)

 

 

 

-

 

 

 

(163)

 

 

 

(145)

 

 

 

-

 

 

 

(145)

 

 

 

(297)

 

 

 

-

 

 

 

(297)

 

- financing income

 

85

 

 

 

-

 

 

 

85

 

 

 

69

 

 

 

-

 

 

 

69

 

 

 

146

 

 

 

-

 

 

 

146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(78)

 

 

 

-

 

 

 

(78)

 

 

 

(76)

 

 

 

-

 

 

 

(76)

 

 

 

(151)

 

 

 

-

 

 

 

(151)

 

Share of results of associates and joint ventures (note 4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- before change in fair value of investment properties

 

590

 

 

 

9

 

 

 

599

 

 

 

398

 

 

 

(11)

 

 

 

387

 

 

 

734

 

 

 

7

 

 

 

741

 

- change in fair value of investment properties

 

-

 

 

 

(56)

 

 

 

(56)

 

 

 

-

 

 

 

(121)

 

 

 

(121)

 

 

 

-

 

 

 

(56)

 

 

 

(56)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

590

 

 

 

(47)

 

 

 

543

 

 

 

398

 

 

 

(132)

 

 

 

266

 

 

 

734

 

 

 

(49)

 

 

 

685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

2,130

 

 

 

2,869

 

 

 

4,999

 

 

 

1,726

 

 

 

848

 

 

 

2,574

 

 

 

3,729

 

 

 

2,617

 

 

 

6,346

 

Tax (note 5)

 

(377)

 

 

 

(4)

 

 

 

(381)

 

 

 

(315)

 

 

 

1

 

 

 

(314)

 

 

 

(654)

 

 

 

(5)

 

 

 

(659)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

1,753

 

 

 

2,865

 

 

 

4,618

 

 

 

1,411

 

 

 

849

 

 

 

2,260

 

 

 

3,075

 

 

 

2,612

 

 

 

5,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

    (notes 6 & 7)

 

765

 

 

 

1,313

 

 

 

2,078

 

 

 

636

 

 

 

348

 

 

 

984

 

 

 

1,386

 

 

 

1,117

 

 

 

2,503

 

Non-controlling interests

 

988

 

 

 

1,552

 

 

 

2,540

 

 

 

775

 

 

 

501

 

 

 

1,276

 

 

 

1,689

 

 

 

1,495

 

 

 

3,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,753

 

 

 

2,865

 

 

 

4,618

 

 

 

1,411

 

 

 

849

 

 

 

2,260

 

 

 

3,075

 

 

 

2,612

 

 

 

5,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

US$

 

 

 

 

 

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (note 6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- basic

 

2.04

 

 

 

 

 

 

 

5.54

 

 

 

1.70

 

 

 

 

 

 

 

2.63

 

 

 

3.71

 

 

 

 

 

 

 

6.69

 

- diluted

 

2.03

 

 

 

 

 

 

 

5.53

 

 

 

1.70

 

 

 

 

 

 

 

2.63

 

 

 

3.70

 

 

 

 

 

 

 

6.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

 

Year ended

31st

December

 

 

 

 

 

2017

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

4,618

 

 

 

 

 

2,260

 

 

 

 

 

5,687

 

 

Other comprehensive income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

 

(2)

 

 

 

 

 

(4)

 

 

 

 

 

23

 

 

Net revaluation surplus before transfer to investment properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- intangible assets

 

 

-

 

 

 

 

 

93

 

 

 

 

 

105

 

 

- tangible assets

 

 

-

 

 

 

 

 

1

 

 

 

 

 

2

 

 

Tax on items that will not be reclassified

 

 

1

 

 

 

 

 

1

 

 

 

 

 

(10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

 

 

 

 

91

 

 

 

 

 

120

 

 

Share of other comprehensive income/

(expense) of associates and joint ventures

 

 

10

 

 

 

 

 

(34)

 

 

 

 

 

(25)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

57

 

 

 

 

 

95

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net exchange translation differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain/(loss) arising during the period

 

 

148

 

 

 

 

 

353

 

 

 

 

 

(139)

 

 

- transfer to profit and loss

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

148

 

 

 

 

 

353

 

 

 

 

 

(142)

 

 

Revaluation of other investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net gain/(loss) arising during the period

 

 

97

 

 

 

 

 

(8)

 

 

 

 

 

113

 

 

- transfer to profit and loss

 

 

(5)

 

 

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

92

 

 

 

 

 

(8)

 

 

 

 

 

113

 

 

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- net loss arising during the period

 

 

(54)

 

 

 

 

 

(22)

 

 

 

 

 

(173)

 

 

- transfer to profit and loss

 

 

7

 

 

 

 

 

17

 

 

 

 

 

186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(47)

 

 

 

 

 

(5)

 

 

 

 

 

13

 

 

Tax relating to items that may be reclassified

 

 

9

 

 

 

 

 

4

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of other comprehensive income/

(expense) of associates and joint ventures

 

 

262

 

 

 

 

 

164

 

 

 

 

 

(213)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

464

 

 

 

 

 

508

 

 

 

 

 

(228)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(expense)

for the period, net of tax

 

 

473

 

 

 

 

 

565

 

 

 

 

 

(133)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

5,091

 

 

 

 

 

2,825

 

 

 

 

 

5,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 

2,358

 

 

 

 

 

1,101

 

 

 

 

 

2,310

 

 

Non-controlling interests

 

 

2,733

 

 

 

 

 

1,724

 

 

 

 

 

3,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,091

 

 

 

 

 

2,825

 

 

 

 

 

5,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

At 30th June

 

 

At 31st

December

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

3,245

 

 

 

2,859

 

 

 

2,825

 

Tangible assets

 

6,619

 

 

 

6,289

 

 

 

6,239

 

Investment properties

 

31,324

 

 

 

26,930

 

 

 

28,609

 

Bearer plants

 

512

 

 

 

528

 

 

 

497

 

Associates and joint ventures

 

12,006

 

 

 

10,448

 

 

 

10,595

 

Other investments

 

1,286

 

 

 

1,141

 

 

 

1,369

 

Non-current debtors

 

3,238

 

 

 

2,923

 

 

 

2,936

 

Deferred tax assets

 

404

 

 

 

333

 

 

 

375

 

Pension assets

 

4

 

 

 

4

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

58,638

 

 

 

51,455

 

 

 

53,450

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties for sale

 

2,103

 

 

 

2,811

 

 

 

2,315

 

Stocks and work in progress

 

3,342

 

 

 

3,139

 

 

 

3,281

 

Current debtors

 

6,660

 

 

 

6,468

 

 

 

6,697

 

Current investments

 

50

 

 

 

47

 

 

 

65

 

Current tax assets

 

165

 

 

 

211

 

 

 

169

 

Bank balances and other liquid funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

5,663

 

 

 

4,624

 

 

 

5,314

 

- financial services companies

 

234

 

 

 

352

 

 

 

229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,897

 

 

 

4,976

 

 

 

5,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,217

 

 

 

17,652

 

 

 

18,070

 

Non-current assets classified as held for sale

 

3

 

 

 

-

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

18,220

 

 

 

17,652

 

 

 

18,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

76,858

 

 

 

69,107

 

 

 

71,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

180

 

 

 

178

 

 

 

178

 

Share premium and capital reserves

 

181

 

 

 

168

 

 

 

175

 

Revenue and other reserves

 

28,005

 

 

 

24,333

 

 

 

25,547

 

Own shares held

 

(4,480)

 

 

 

(3,963)

 

 

 

(4,100)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' funds

 

23,886

 

 

 

20,716

 

 

 

21,800

 

Non-controlling interests

 

30,119

 

 

 

26,721

 

 

 

27,937

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

54,005

 

 

 

47,437

 

 

 

49,737

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

5,139

 

 

 

5,735

 

 

 

5,343

 

- financial services companies

 

1,510

 

 

 

1,765

 

 

 

1,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,649

 

 

 

7,500

 

 

 

6,861

 

Deferred tax liabilities

 

580

 

 

 

478

 

 

 

500

 

Pension liabilities

 

443

 

 

 

439

 

 

 

419

 

Non-current creditors

 

505

 

 

 

436

 

 

 

440

 

Non-current provisions

 

163

 

 

 

156

 

 

 

151

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

8,340

 

 

 

9,009

 

 

 

8,371

 

 

 

 

 

 

 

 

 

 

 

 

 

Current creditors

 

9,206

 

 

 

8,430

 

 

 

8,714

 

Current borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- non-financial services companies

 

2,447

 

 

 

1,902

 

 

 

2,058

 

- financial services companies

 

2,410

 

 

 

1,937

 

 

 

2,265

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,857

 

 

 

3,839

 

 

 

4,323

 

Current tax liabilities

 

344

 

 

 

295

 

 

 

266

 

Current provisions

 

106

 

 

 

97

 

 

 

112

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

14,513

 

 

 

12,661

 

 

 

13,415

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

22,853

 

 

 

21,670

 

 

 

21,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

76,858

 

 

 

69,107

 

 

 

71,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Statement of Changes in Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share

capital

US$m

 

Share

premium

US$m

 

Capital

reserves

US$m

 

Revenue

reserves

US$m

Asset

revaluation

reserves

US$m

 

Hedging

reserves

US$m

 

Exchange

reserves

US$m

 

Own

shares

held

US$m

Attributable

to non-controlling interests

US$m

 

Total

equity

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2017 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2017

178

 

20

 

155

 

27,223

 

210

 

(32)

 

(1,854)

 

(4,100)

 

21,800

 

27,937

 

49,737

Total comprehensive income

-

 

-

 

-

 

2,152

 

-

 

4

 

202

 

-

 

2,358

 

2,733

 

5,091

Dividends paid by the Company (note 8)

-

 

-

 

-

 

(420)

 

-

 

-

 

-

 

-

 

(420)

 

75

 

(345)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(550)

 

(550)

Issue of shares

-

 

9

 

-

 

-

 

-

 

-

 

-

 

-

 

9

 

-

 

9

Employee share option schemes

-

 

-

 

11

 

-

 

-

 

-

 

-

 

-

 

11

 

1

 

12

Scrip issued in lieu of dividends

2

 

(2)

 

-

 

552

 

-

 

-

 

-

 

-

 

552

 

-

 

552

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(380)

 

(380)

 

(75)

 

(455)

Subsidiaries acquired

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

7

 

7

Change in interests in subsidiaries

-

 

-

 

-

 

(15)

 

-

 

-

 

-

 

-

 

(15)

 

(9)

 

(24)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(29)

 

-

 

-

 

-

 

-

 

(29)

 

-

 

(29)

Transfer

-

 

5

 

(17)

 

12

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2017

180

 

32

 

149

 

29,475

 

210

 

(28)

 

(1,652)

 

(4,480)

 

23,886

 

30,119

 

54,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30th June 2016 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2016

175

 

21

 

137

 

24,578

 

176

 

(14)

 

(1,591)

 

(3,596)

 

19,886

 

25,614

 

45,500

Total comprehensive income

-

 

-

 

-

 

938

 

30

 

(17)

 

150

 

-

 

1,101

 

1,724

 

2,825

Dividends paid by the Company (note 8)

-

 

-

 

-

 

(399)

 

-

 

-

 

-

 

-

 

(399)

 

72

 

(327)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(530)

 

(530)

Issue of shares

-

 

1

 

-

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Employee share option schemes

-

 

-

 

12

 

-

 

-

 

-

 

-

 

-

 

12

 

1

 

13

Scrip issued in lieu of dividends

3

 

(3)

 

-

 

515

 

-

 

-

 

-

 

-

 

515

 

-

 

515

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(367)

 

(367)

 

(57)

 

(424)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

76

 

76

Change in interests in subsidiaries

-

 

-

 

-

 

(31)

 

-

 

-

 

-

 

-

 

(31)

 

(179)

 

(210)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(2)

 

-

 

-

 

-

 

-

 

(2)

 

-

 

(2)

Transfer

-

 

1

 

(1)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30th June 2016

178

 

20

 

148

 

25,599

 

206

 

(31)

 

(1,441)

 

(3,963)

 

20,716

 

26,721

 

47,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 31st December 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2016

175

 

21

 

137

 

24,578

 

176

 

(14)

 

(1,591)

 

(3,596)

 

19,886

 

25,614

 

45,500

Total comprehensive income

-

 

-

 

-

 

2,558

 

34

 

(18)

 

(264)

 

-

 

2,310

 

3,244

 

5,554

Dividends paid by the Company

-

 

-

 

-

 

(541)

 

-

 

-

 

-

 

-

 

(541)

 

97

 

(444)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(778)

 

(778)

Unclaimed dividends forfeited

-

 

-

 

-

 

1

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Issue of shares

-

 

1

 

-

 

-

 

-

 

-

 

-

 

-

 

1

 

-

 

1

Employee share option schemes

-

 

-

 

22

 

-

 

-

 

-

 

-

 

-

 

22

 

1

 

23

Scrip issued in lieu of dividends

3

 

(3)

 

-

 

700

 

-

 

-

 

-

 

-

 

700

 

-

 

700

Increase in own shares held

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(504)

 

(504)

 

(73)

 

(577)

Capital contribution from non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

83

 

83

Change in interests in subsidiaries

-

 

-

 

-

 

(74)

 

-

 

-

 

1

 

-

 

(73)

 

(251)

 

(324)

Change in interests in associates and joint ventures

-

 

-

 

-

 

(2)

 

-

 

-

 

-

 

-

 

(2)

 

-

 

(2)

Transfer

-

 

1

 

(4)

 

3

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31st December 2016

178

 

20

 

155

 

27,223

 

210

 

(32)

 

(1,854)

 

(4,100)

 

21,800

 

27,937

 

49,737

 

Total comprehensive income for the six months ended 30th June 2017 included in revenue reserves comprises profit attributable to shareholders of the Company of US$2,078 million (2016: US$984 million) and net fair value gain on other investments of US$64 million (2016: net fair value loss of US$13 million).  Cumulative net fair value gain on other investments amounted to US$411 million.

 

Total comprehensive income for the year ended 31st December 2016 included in revenue reserves comprises profit attributable to shareholders of the Company of US$2,503 million and net fair value gain on other investments of US$94 million.  Cumulative net fair value gain on other investments amounted to US$347 million.

______________________________________________________________________________________________________________________________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Consolidated Cash Flow Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

 

 

 

2017

US$m

 

 

 

 

2016

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

4,534

 

 

 

2,384

 

 

 

5,812

 

Change in fair value of investment properties

 

(2,694)

 

 

 

(986)

 

 

 

(2,573)

 

Depreciation and amortization

 

476

 

 

 

466

 

 

 

945

 

Other non-cash items

 

(69)

 

 

 

109

 

 

 

120

 

Increase in working capital

 

(42)

 

 

 

(186)

 

 

 

(94)

 

Interest received

 

79

 

 

 

68

 

 

 

136

 

Interest and other financing charges paid

 

(172)

 

 

 

(141)

 

 

 

(289)

 

Tax paid

 

(316)

 

 

 

(335)

 

 

 

(704)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,796

 

 

 

1,379

 

 

 

3,353

 

Dividends from associates and joint ventures

 

534

 

 

 

341

 

 

 

597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

2,330

 

 

 

1,720

 

 

 

3,950

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of subsidiaries (note 10(a))

 

(24)

 

 

 

(49)

 

 

 

(60)

 

Purchase of associates and joint ventures (note 10(b))

 

(1,079)

 

 

 

(221)

 

 

 

(652)

 

Purchase of other investments (note 10(c))

 

(148)

 

 

 

(69)

 

 

 

(294)

 

Purchase of intangible assets

 

(95)

 

 

 

(64)

 

 

 

(142)

 

Purchase of tangible assets

 

(560)

 

 

 

(495)

 

 

 

(996)

 

Additions to investment properties

 

(217)

 

 

 

(136)

 

 

 

(313)

 

Additions to bearer plants

 

(19)

 

 

 

(28)

 

 

 

(56)

 

Advance to associates and joint ventures (note 10(d))

 

(304)

 

 

 

(3)

 

 

 

(81)

 

Advance and repayment from associates and joint      ventures (note10(e))

 

232

 

 

 

33

 

 

 

175

 

Sale of subsidiaries

 

14

 

 

 

15

 

 

 

16

 

Sale of associates and joint ventures

 

20

 

 

 

-

 

 

 

5

 

Redemption of convertible bonds in Zhongsheng

 

398

 

 

 

-

 

 

 

-

 

Sale of other investments (note 10(f))

 

117

 

 

 

34

 

 

 

122

 

Sale of intangible assets

 

1

 

 

 

3

 

 

 

8

 

Sale of tangible assets

 

210

 

 

 

38

 

 

 

204

 

Sale of investment properties

 

42

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

(1,412)

 

 

 

(941)

 

 

 

(2,063)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue of shares

 

5

 

 

 

1

 

 

 

1

 

Capital contribution from non-controlling interests

 

-

 

 

 

76

 

 

 

77

 

Change in interests in subsidiaries (note 10(g))

 

(9)

 

 

 

(210)

 

 

 

(339)

 

Drawdown of borrowings

 

12,813

 

 

 

11,638

 

 

 

23,629

 

Repayment of borrowings

 

(12,683)

 

 

 

(11,428)

 

 

 

(23,314)

 

Dividends paid by the Company

 

(248)

 

 

 

(236)

 

 

 

(322)

 

Dividends paid to non-controlling interests

 

(555)

 

 

 

(532)

 

 

 

(783)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

(677)

 

 

 

(691)

 

 

 

(1,051)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

241

 

 

 

88

 

 

 

836

 

Cash and cash equivalents at beginning of period

 

5,531

 

 

 

4,773

 

 

 

4,773

 

Effect of exchange rate changes

 

68

 

 

 

49

 

 

 

(78)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

5,840

 

 

 

4,910

 

 

 

5,531

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Matheson Holdings Limited

Analysis of Profit Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

Six months ended

30th June

 

 

Year ended 31st December

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reportable segments

 

 

 

 

 

 

 

 

 

 

 

Jardine Pacific

 

68

 

 

 

54

 

 

 

135

 

Jardine Motors

 

83

 

 

 

57

 

 

 

126

 

Jardine Lloyd Thompson

 

36

 

 

 

31

 

 

 

56

 

Hongkong Land

 

216

 

 

 

163

 

 

 

353

 

Dairy Farm

 

137

 

 

 

128

 

 

 

297

 

Mandarin Oriental

 

10

 

 

 

15

 

 

 

36

 

Jardine Cycle & Carriage

 

45

 

 

 

58

 

 

 

125

 

Astra

 

198

 

 

 

155

 

 

 

312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

793

 

 

 

661

 

 

 

1,440

 

Corporate and other interests

 

(28)

 

 

 

(25)

 

 

 

(54)

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders*

 

765

 

 

 

636

 

 

 

1,386

 

Increase in fair value of investment properties

 

1,097

 

 

 

363

 

 

 

1,061

 

Other non-trading items

 

216

 

 

 

(15)

 

 

 

56

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to shareholders

 

2,078

 

 

 

984

 

 

 

2,503

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of Jardine Pacific's contribution

 

 

 

 

 

 

 

 

 

 

 

Jardine Schindler

 

23

 

 

 

20

 

 

 

44

 

JEC

 

6

 

 

 

6

 

 

 

28

 

Gammon

 

16

 

 

 

8

 

 

 

18

 

Jardine Restaurants

 

16

 

 

 

14

 

 

 

28

 

Transport Services

 

11

 

 

 

6

 

 

 

17

 

JTH Group

 

-

 

 

 

3

 

 

 

9

 

Corporate and other interests

 

(4)

 

 

 

(3)

 

 

 

(9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

68

 

 

 

54

 

 

 

135

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of Jardine Motors' contribution

 

 

 

 

 

 

 

 

 

 

 

Hong Kong and mainland China

 

76

 

 

 

35

 

 

 

98

 

United Kingdom

 

8

 

 

 

23

 

 

 

30

 

Corporate

 

(1)

 

 

 

(1)

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83

 

 

 

57

 

 

 

126

 

 

Underlying profit attributable to shareholders is the measure of profit adopted by the Group in accordance with IFRS 8 'Operating Segments'.

__________________________________________________________________________________________

 

 

 

 

Jardine Matheson Holdings Limited

Notes to Condensed Financial Statements

 

 

1.    Accounting Policies and Basis of Preparation

 

The condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting'.  The condensed financial statements have been prepared on a going concern basis.  The condensed financial statements have not been audited or reviewed by the Group's auditors pursuant to the UK Auditing Practices Board guidance on the review of interim financial information.

 

There are no new standards or amendments, which are effective in the current accounting period and relevant to the Group's operations, that have a significant effect on the Group's accounting policies.  There have been no changes to the accounting policies described in the 2016 annual financial statements.

 

 

2.    Revenue

 

 

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross revenue

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jardine Pacific

 

3,003

 

 

 

2,879

 

 

 

1,112

 

 

 

1,120

 

 

Jardine Motors

 

2,737

 

 

 

2,595

 

 

 

2,737

 

 

 

2,595

 

 

Jardine Lloyd Thompson

 

877

 

 

 

881

 

 

 

-

 

 

 

-

 

 

Hongkong Land

 

2,381

 

 

 

1,209

 

 

 

1,297

 

 

 

783

 

 

Dairy Farm

 

10,448

 

 

 

10,110

 

 

 

5,505

 

 

 

5,562

 

 

Mandarin Oriental

 

462

 

 

 

469

 

 

 

287

 

 

 

288

 

 

Jardine Cycle & Carriage

 

3,446

 

 

 

3,276

 

 

 

1,150

 

 

 

1,120

 

 

Astra

 

14,850

 

 

 

13,271

 

 

 

7,369

 

 

 

6,583

 

 

Intersegment transactions

 

(132)

 

 

 

(121)

 

 

 

(27)

 

 

 

(25)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,072

 

 

 

34,569

 

 

 

19,430

 

 

 

18,026

 

 

Gross revenue comprises revenue together with 100% of revenue from associates and joint ventures.

 

3.    Net Operating Costs

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(14,886)

 

 

 

(13,845)

 

 

Other operating income

 

481

 

 

 

239

 

 

Selling and distribution costs

 

(2,152)

 

 

 

(2,073)

 

 

Administration expenses

 

(972)

 

 

 

(905)

 

 

Other operating expenses

 

(61)

 

 

 

(44)

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,590)

 

 

 

(16,628)

 

 

 

 

 

 

 

 

 

 

 

Net operating costs included the following gains/(losses) from non-trading items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of property interests

 

195

 

 

 

-

 

 

Sale of businesses

 

4

 

 

 

-

 

 

Change in interests in associates and joint ventures

 

13

 

 

 

(4)

 

 

Value added tax recovery in Jardine Motors

 

10

 

 

 

-

 

 

Acquisition-related costs

 

-

 

 

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

222

 

 

 

(6)

 

 

4.    Share of Results of Associates and Joint Ventures

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Pacific

 

55

 

 

 

38

 

 

Jardine Lloyd Thompson

 

36

 

 

 

20

 

 

Hongkong Land

 

58

 

 

 

(61)

 

 

Dairy Farm

 

62

 

 

 

46

 

 

Mandarin Oriental

 

3

 

 

 

5

 

 

Jardine Cycle & Carriage

 

57

 

 

 

69

 

 

Astra

 

271

 

 

 

148

 

 

Corporate and other interests

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

543

 

 

 

266

 

 

 

 

 

 

 

 

 

 

 

Share of results of associates and joint ventures included the following gains/(losses) from non-trading items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of investment properties

 

(56)

 

 

 

(121)

 

 

Change in interest in an associate

 

8

 

 

 

-

 

 

Sale of businesses

 

1

 

 

 

(1)

 

 

Litigation costs

 

-

 

 

 

(10)

 

 

 

 

 

 

 

 

 

 

 

 

 

(47)

 

 

 

(132)

 

 

Results are shown after tax and non-controlling interests in the associates and joint ventures.

 

5.    Tax

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax charged to profit and loss is analyzed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current tax

 

(397)

 

 

 

(337)

 

 

Deferred tax

 

16

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

(381)

 

 

 

(314)

 

 

 

 

 

 

 

 

 

 

 

Greater China

 

(144)

 

 

 

(133)

 

 

Southeast Asia

 

(232)

 

 

 

(173)

 

 

United Kingdom

 

(3)

 

 

 

(5)

 

 

Rest of the world

 

(2)

 

 

 

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

(381)

 

 

 

(314)

 

 

 

 

 

 

 

 

 

 

 

Tax relating to components of other comprehensive income or expense is analyzed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurements of defined benefit plans

 

1

 

 

 

1

 

 

Cash flow hedges

 

9

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

5

 

 

Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates.

 

Share of tax charge of associates and joint ventures of US$228 million and US$5 million (2016: charge of US$105 million and credit of US$14 million) are included in share of results of associates and joint ventures and share of other comprehensive income of associates and joint ventures, respectively.

 

6.    Earnings per Share

 

Basic earnings per share are calculated on profit attributable to shareholders of US$2,078 million (2016: US$984 million) and on the weighted average number of 375 million (2016: 374 million) shares in issue during the period.

 

Diluted earnings per share are calculated on profit attributable to shareholders of US$2,078 million (2016: US$984 million), which is after adjusting for the effects of the conversion of dilutive potential ordinary shares of subsidiaries, associates or joint ventures, and on the weighted average number of 376 million (2016: 374 million) shares after adjusting for the number of shares which are deemed to be issued for no consideration under the Senior Executive Share Incentive Schemes based on the average share price during the period.

 

The weighted average number of shares is arrived at as follows:

 

 

 

 

Ordinary shares

in millions

 

 

 

 

2017

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares in issue

 

716

 

 

 

704

 

 

Company's share of shares held by subsidiaries

 

(341)

 

 

 

(330)

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares for basic earnings

per share calculation

 

375

 

 

 

374

 

 

Adjustment for shares deemed to be issued for no consideration under the Senior Executive Share

Incentive Schemes

 

1

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares for diluted earnings per share calculation

 

376

 

 

 

374

 

 

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:

 

 

 

 

 

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

US$m

 

 

Basic earnings per share

US$

 

 

Diluted earnings per share

US$

 

 

US$m

 

 

Basic earnings per share

US$

 

 

Diluted earnings per share

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to shareholders

 

2,078

 

 

5.54

 

 

5.53

 

 

984

 

 

2.63

 

 

2.63

 

 

Non-trading items (note 7)

 

(1,313)

 

 

 

 

 

 

 

 

(348)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying profit attributable to shareholders

 

765

 

 

 

 

 

 

636

 

 

 

 

 

 

7.    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; 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; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By business:

 

 

 

 

 

 

 

 

Jardine Pacific

 

5

 

 

 

-

 

 

Jardine Motors

 

203

 

 

 

-

 

 

Jardine Lloyd Thompson

 

-

 

 

 

(11)

 

 

Hongkong Land

 

1,090

 

 

 

363

 

 

Dairy Farm

 

1

 

 

 

-

 

 

Mandarin Oriental

 

-

 

 

 

(1)

 

 

Jardine Cycle & Carriage

 

5

 

 

 

(3)

 

 

Astra

 

9

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

1,313

 

 

 

348

 

 

 

 

 

 

 

 

 

 

 

An analysis of non-trading items after interest, tax and non-controlling interests is set out below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of investment properties

 

 

 

 

 

 

 

 

- Hongkong Land

 

1,090

 

 

 

363

 

 

- other

 

7

 

 

 

-

 

 

Sale of property interests

 

195

 

 

 

-

 

 

Sale of businesses

 

5

 

 

 

(1)

 

 

Change in interests in associates and joint ventures

 

8

 

 

 

(3)

 

 

Value added tax recovery in Jardine Motors

 

8

 

 

 

-

 

 

Litigation costs

 

-

 

 

 

(10)

 

 

Acquisition-related costs

 

-

 

 

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,313

 

 

 

348

 

 

 

 

 

 

 

 

 

 

 

8.    Dividends

 

 

Six months ended 30th June

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

US$m

 

 

 

2016

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Final dividend in respect of 2016 of US¢112.00

(2015: US¢107.00) per share

 

800

 

 

 

751

 

 

Company's share of dividends paid on the shares held by subsidiaries

 

(380)

 

 

 

(352)

 

 

 

 

 

 

 

 

 

 

 

 

 

420

 

 

 

399

 

 

An interim dividend in respect of 2017 of US¢40.00 (2016: US¢38.00) per share amounting to a total of US$289 million (2016: US$270 million) is declared by the Board.  The net amount after deducting the Company's share of the dividends payable on the shares held by subsidiaries of US$139 million (2016: US$128 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2017.

 

9.    Financial Instruments

 

Financial instruments by category

 

The fair values of financial assets and financial liabilities, together with carrying amounts at  30th June 2017 and 31st December 2016 are as follows:

 

 

 

 

Loans and

receivables

US$m

 

Derivatives used for hedging

US$m

 

 

Available-

for-sale

US$m

 

Other financial instruments at amortized cost

US$m

 

 

Other financial instruments fair value through profit and loss

US$m

 

 

Total

carrying

amount

US$m

 

 

Fair

value

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30th June 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

-

 

 

-

 

 

1,332

 

 

-

 

 

-

 

 

1,332

 

 

1,332

 

 

Debtors

 

8,445

 

 

59

 

 

-

 

 

-

 

 

12

 

 

8,516

 

 

8,521

 

 

Bank balances and other liquid funds

 

5,897

 

 

-

 

 

-

 

 

-

 

 

-

 

 

5,897

 

 

5,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,342

 

 

59

 

 

1,332

 

 

-

 

 

12

 

 

15,745

 

 

15,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

(excluding finance lease liabilities)

 

-

 

 

-

 

 

-

 

 

(11,456)

 

 

-

 

 

(11,456)

 

 

(11,594)

 

 

Finance lease

liabilities

 

-

 

 

-

 

 

-

 

 

(50)

 

 

-

 

 

(50)

 

 

(50)

 

 

Trade and other

payables excluding non-financial liabilities

 

-

 

 

(59)

 

 

-

 

 

(7,713)

 

 

(10)

 

 

(7,782)

 

 

(7,782)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

(59)

 

 

-

 

 

(19,219)

 

 

(10)

 

 

(19,288)

 

 

(19,426)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31st December 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

-

 

 

-

 

 

1,427

 

 

-

 

 

-

 

 

1,427

 

 

1,427

 

 

Debtors

 

8,271

 

 

119

 

 

-

 

 

-

 

 

12

 

 

8,402

 

 

8,323

 

 

Bank balances and

other liquid funds

 

5,543

 

 

-

 

 

-

 

 

-

 

 

-

 

 

5,543

 

 

5,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,814

 

 

119

 

 

1,427

 

 

-

 

 

12

 

 

15,372

 

 

15,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

(excluding finance lease liabilities)

 

-

 

 

-

 

 

-

 

 

(11,129)

 

 

-

 

 

(11,129)

 

 

(11,214)

 

 

Finance lease

liabilities

 

-

 

 

-

 

 

-

 

 

(55)

 

 

-

 

 

(55)

 

 

(55)

 

 

Trade and other

payables excluding non-financial liabilities

 

-

 

 

(29)

 

 

-

 

 

(7,104)

 

 

(10)

 

 

(7,143)

 

 

(7,143)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

(29)

 

 

-

 

 

(18,288)

 

 

(10)

 

 

(18,327)

 

 

(18,412)

 

 

 

Fair value estimation

(i)  Financial instruments that are measured at fair value

For financial instruments that are measured at fair value in the balance sheet, the corresponding fair value measurements are disclosed by level of the following fair value measurement hierarchy:

 

(a)  Quoted prices (unadjusted) in active markets for identical assets or liabilities ('quoted prices in active markets')

The fair values of listed securities, which are classified as available-for-sale, are based on quoted prices in active markets at the balance sheet date.  The quoted market price used for listed investments held by the Group is the current bid price.

 

(b)  Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly ('observable current market transactions')

The fair values of derivative financial instruments are determined using rates quoted by the Group's bankers at the balance sheet date.  The rates for interest rate swaps and caps, cross-currency swaps, forward foreign exchange contracts and credit default swaps are calculated by reference to market interest rates and foreign exchange rates.

 

The fair values of unlisted investments, which are classified as available-for-sale and mainly include club and school debentures, are determined using prices quoted by brokers at the balance sheet date.

 

(c)  Inputs for assets or liabilities that are not based on observable market data ('unobservable inputs')

The fair values of other unlisted securities, which are classified as available-for-sale, are determined using valuation techniques by reference to observable current market transactions (including price-to earnings and price-to book ratios of listed securities of entities engaged in similar industries) or the market prices of the underlying investments with certain degree of entity specific estimates.  The fair value of convertible component of convertible bonds held is made reference to the quoted price of the underlying shares and estimation on volatility.

 

There were no changes in valuation techniques during the six months ended 30th June 2017 and the year ended 31st December 2016.

 

The table below analyzes financial instruments carried at fair value at 30th June 2017 and  31st December 2016, by the levels in the fair value measurement hierarchy:

 

 

 

 

Quoted

prices in active markets

US$m

 

 

Observable current market transactions

US$m

 

Unobservable inputs

US$m

 

 

 

Total

US$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30th June 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- listed securities

 

1,229

 

 

 

-

 

 

 

-

 

 

 

1,229

 

 

 

- unlisted investments

 

-

 

 

 

46

 

 

 

57

 

 

 

103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,229

 

 

 

46

 

 

 

57

 

 

 

1,332

 

 

 

Derivative designated at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- through other comprehensive income

 

-

 

 

 

42

 

 

 

-

 

 

 

42

 

 

 

- through profit and loss

 

-

 

 

 

17

 

 

 

-

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,229

 

 

 

105

 

 

 

57

 

 

 

1,391

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration payable

 

-

 

 

 

-

 

 

 

(10)

 

 

 

(10)

 

 

 

Derivative designated at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- through other comprehensive income

 

-

 

 

 

(55)

 

 

 

-

 

 

 

(55)

 

 

 

- through profit and loss

 

-

 

 

 

(4)

 

 

 

-

 

 

 

(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

(59)

 

 

 

(10)

 

 

 

(69)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31st December 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- listed securities

 

1,327

 

 

 

-

 

 

 

-

 

 

 

1,327

 

 

 

- unlisted investments

 

-

 

 

 

44

 

 

 

56

 

 

 

100