Jardine Matheson : 2021 Annual Report - Jardine Matheson

Contents

Strategic Report

Introduction1

Highlights2

Creating Value at Jardines 4

Group Structure 12

Businesses at a Glance 14

Chairman's Statement 16

Group Managing Director's Review 20

Financial Review 44

Sustainability 50

www.jardines.com for more information

Governance Report

Directors' Profiles 56

Corporate Governance 58

Principal Risks and Uncertainties 74

Shareholder Information 79

Financial Report

Financial Statements 80

Independent Auditors' Report 180

Five Year Summary 189

Responsibility Statement 190

Group Offices 191

Jardine Matheson Holdings Limited is incorporated in Bermuda and has a primary listing in the standard segment of the London Stock Exchange, with secondary listings in Bermuda and Singapore. Jardine Matheson Limited operates from Hong Kong and provides management services to Group companies.

Jardine Matheson Holdings Limited Jardine House

Hamilton Bermuda

Jardine Matheson is a diversified Asian-based group founded in China in 1832, with unsurpassed experience in the region.

We comprise a broad portfolio of market-leading businesses, whose activities are closely aligned to the increasingly prosperous consumers of the Asian region.

Where We Operate

We operate principally in China and Southeast Asia, where our subsidiaries and affiliates can leverage our vast experience, expertise, networks and long-standing relationships in the region. Our goal is to support our Group companies and provide them with financial and other resources, in order to create value and help our businesses achieve sustainable growth over the long term.

Our Operations

Across the Group, our over 400,000 employees work in a wide range of businesses in major sectors including motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, transport services, restaurants, luxury hotels, financial services, heavy equipment, mining and agribusiness.

Our Approach

Integrity, steadfastness, collaboration and an entrepreneurial spirit are values which inspire us. They also underpin how our businesses operate, as they provide products, services and experiences that impact the lives of many millions every day. These values also apply in our workspaces, where we strive to provide positive, safe working environments. We are also committed to supporting and improving our communities through programmes that make a difference in areas including education, mental health, the environment and more.

Highlights

• • Underlying net profit up 39% against 2020, 5% below 2019

• • Increased earnings per share and enhanced corporate governance through simplification of Group's parent company structure

• • Underlying earnings per share US$4.83, up 64% against prior year and 14% higher than 2019

• • Good recovery in Southeast Asia, led by Astra

• • Motors business performs strongly, led by Zhongsheng and UK Motors

• • Mandarin Oriental sees strong recovery with underlying loss significantly reduced

• • DFI Retail transformation offsets continued operating challenges, but results impacted by associate Yonghui's substantial loss

• • Full year dividend at US$2.00, up 16%

Analysis of underlying profit attributable to shareholders of US$1,513 million

By business*

Jardine Motors

DFI Retail Group

US$318m 20%

US$82mJardine Cycle & Carriage US$119m

5% 7%

11%

30%

30%

Jardine Pacific US$175m

Hongkong Land US$474m

(3%)

Mandarin Oriental

Astra US$474m

(US$48m)

By sector*

By geographical area*

30%

US$484m

33%

US$520m

Property

Motor vehicles

20%

US$314m

9%

US$146m

Engineering,

Retail &

heavy equipment,

restaurants

mining &

construction

8%

US$125m

(3%)

(US$48m)

Financial services

Hotels

3%

US$53m

Others

* Based on underlying profit attributable to shareholders before corporate and other interests, which amounted to US$1,594 million.

Highlights

2021 financial highlights

US$109,370m US$4,117m US$91,489m 400,000

Total assets
US$6,635m
Net borrowings#
2021	2020	Change
US$m	US$m	%
Gross revenue including 100% of associates and joint ventures	109,370	90,906	20
Revenue	35,862	32,647	10
Underlying profit before taxΩ	4,117	2,786	48
Underlying profit attributable to shareholdersΩ Δ	1,513	1,085	39
Profit/(loss) attributable to shareholders	1,881	(394)	n/a
Shareholders' funds	29,781	29,387	1
US$	US$	%
Underlying earnings per shareΩ Δ	4.83	2.95	64
Earnings/(loss) per share	6.01	(1.07)	n/a
Dividends per share	2.00	1.72	16
Underlying earnings per share (US$)

Gross revenue

Underlying profit before taxPeople employed

US$29,781mUS$1,513m

US$14,977m

Shareholders' funds

Underlying profit attributable to shareholders

Total capital investment†

Results

Net asset value per share (US$)

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* Based on underlying profit attributable to shareholders before corporate and other interests, which amounted to US$1,594 million. # Excluding net borrowings of financial services companies.

† Including expenditure on properties for sale and associates and joint ventures.

Ω 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.

Δ Improvements to underlying profit attributable to shareholders and underlying earnings per share benefitted from the impact of the Company's acquisition of the remaining 15% minority Hiignhtleigrhetsst in Jardine Strategic. Excluding the impact of this Group simplification, increases in underlyiHnighnliegthptsrofit and underlying earnings per share in 2021 were 29% and 32%, respectively.

Underlying Earnings per Share (US$)

Net Asset Value per Share (US$)