Half Yearly Report

RNS Number : 0482X

Jardine Matheson Hldgs Ld

07 August 2009

 



To:  Business Editor	7th August 2009
	For immediate release

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

Jardine Matheson Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2009 

Highlights 

•	13% decline in first half underlying earnings
•	Interim dividend up 4%
•	Improved contributions from Hongkong Land and Dairy Farm
•	Challenging markets for hotels, motors and aviation services
•	Hongkong Land commercial investment property values down 8%
•	Hongkong Land consolidated as a subsidiary from 30th June

'While the outlook for a number of our markets remains uncertain, some improved performances are expected from our businesses as the year progresses.  Hongkong Land, in particular, should see a strong second half, contributing to a satisfactory full-year result for Jardine Matheson. The Group is well financed and the quality of our businesses provides the basis for excellent prospects over the longer term.'

Sir Henry Keswick, Chairman

7th August 2009

Results

	(unaudited)
Six months ended 30th June
	2009  US$m	2008 US$m	Change %
Underlying profit attributable to shareholders*	389	448	-13
Profit attributable to shareholders	249	1,018	-76
Shareholders' funds†	8,489	8,248	+3
	US$	US$	%
Underlying earnings per share*	1.10	1.27	-13
Earnings per share	0.70	2.89	-76
Interim dividend per share	0.25	0.24	+4
Net asset value per share†	23.81	23.30	+2

*

The Group uses 'underlying business performance' in its internal financial reporting to distinguish between the underlying profits and non-trading items, as more fully described in note 9 to the condensed financial statements. Management considers this to be a key measure and has provided this analysis as additional information in order to provide greater understanding of the Group's business performance.

†

At 30th June 2009 and 31st December 2008, respectively. Net asset value per share is based on the book value of shareholders' funds.

The interim dividend of US¢25.00 per share will be payable on 21st October 2009 to shareholders on the register of members at the close of business on 28th August 2009 and will be available in cash with a scrip alternative. The ex-dividend date will be on 26th August 2009, and the share registers will be closed from 31st August to 4th September 2009, inclusive.

Jardine Matheson Holdings Limited

Half-Yearly Results for the Six Months ended 30th June 2009 

Overview

The global economic downturn has affected the Group's businesses to varying degrees. While overall earnings have declined from the record result seen in the first half of 2008, there were relatively good contributions from Hongkong Land and Dairy Farm.

Performance 

The Company's underlying profit for the first six months of 2009 was US$389 million, a decline of 13% over the same period in 2008. Underlying earnings per share were also 13% lower at US$1.10. The turnover of the Group, including 100% of the turnover of associates and joint ventures, was US$15.7 billion, compared to US$18.5 billion in the first half of 2008.

The Group's share of investment property valuations in Hongkong Land at the end of June gave rise to a net deficit of US$275 million, which has been taken through the profit and loss account. This compares with a US$541 million gain in the first half of 2008. Non-trading items for the period also included the Company's US$45 million share of a gain on a property disposal within Mandarin Oriental, a US$40 million gain arising on the reclassification of perpetual notes as equity by Rothschilds Continuation and a gain of US$32 million arising on an increase in the Group's interest in Hongkong Land. After non-trading items, the Company's profit attributable to shareholders was US$249 million for the six months, compared with US$1,018 million in 2008. 

The Board has declared an increased interim dividend of US¢25.00 per share, up 4%, reflecting the Group's sound prospects for the full year.

Business Activity

A number of Jardine Pacific's businesses suffered from the effects of the economic downturn leading to an overall lower profit for the period. While its engineering and construction activities are continuing to trade well, the group's results for the full year will remain below those of 2008.

Jardine Motors' earnings declined further due to weaker results in its three main markets. Its dealerships in Southern China were least affected as demand remained relatively strong despite the impact of significantly reduced exports on the Guangdong economy.

Jardine Lloyd Thompson did well in winning new business and controlling costs. Its contribution to the Group's results, however, was held back by reduced interest income from its cash holdings and a sharp decline in sterling. 

Hongkong Land continued to achieve positive rental reversions despite the commercial property markets in both Hong Kong and Singapore softening in the first half of the year. In the residential sector it has seen some recent improvement in sentiment in the markets where the group is active.  Hongkong Land's full-year results will show a strong increase due to earnings from the completion of residential properties already sold and the absence of the write-downs seen at the end of 2008.  Hongkong Land became a Group subsidiary in June 2009 after many years of steady open market share purchases and has been consolidated with effect from 30th June 2009.

Dairy Farm produced further increases in sales and profit during the first half of 2009. The group continued to expand its retail network increasing its total number of stores in operation by 207 to 4,847. Its health and beauty operations in mainland China, in particular, are being developed with the addition of new stores in a number of major cities.

Occupancy levels across most of Mandarin Oriental's hotels were substantially below those achieved in the same period last year as a result of reduced travel worldwide. Average room rates were also negatively affected. Demand in Europe was less influenced by the economic conditions, and the group's London property performed relatively well. Mandarin Oriental's development programme is continuing and three new hotels under management contracts are due to open over the next six months. Its Jakarta property will also reopen in October following an extensive renovation.

Jardine Cycle & Carriage's earnings were lower, principally due to profit declines in Astra's motor and palm oil activities and a weaker average rupiah exchange rate. Astra's financial services, heavy equipment and contract coal mining businesses, however, were able to produce improved performances. Jardine Cycle & Carriage's own motor activities were affected by the softer markets, although there was a modest contribution from the now 25%-owned Truong Hai Auto Corporation in Vietnam.

A Jardine Strategic group company sold its 20% stake in Tata Industries in July 2009 for proceeds of some US$158 million. The company has since reinvested the funds in a shareholding of approximately 3% in the publicly-listed Tata Power Company, India's largest private sector power utility company.

Outlook

While the outlook for a number of our markets remains uncertain, some improved performances are expected from our businesses as the year progresses.  Hongkong Land, in particular, should see a strong second half, contributing to a satisfactory full-year result for Jardine Matheson. The Group is well financed and the quality of our businesses provides the basis for excellent prospects over the longer term.

Sir Henry Keswick

Chairman  

7th August 2009

Operating Review

Jardine Pacific

Jardine Pacific's underlying profit for the first half of 2009 was 22% lower at US$43 million compared to the same period in 2008. The revaluation of the group's residential property investment portfolio gave rise to a non-trading gain of US$8 million, producing a profit attributable to shareholders of US$51 million. 

Hong Kong Air Cargo Terminals recorded a 38% reduction in profit contribution as cargo throughput declined by 21%.  Jardine Aviation Services' earnings suffered in a difficult aviation market, while Jardine Shipping Services experienced low freight rates and volumes in its liner agency business.

Gammon's earnings were weaker on reduced contributions from Macau and Singapore, although its strong order book is expected to produce an improved financial performance in the second half of the year.  Jardine Schindler's growing maintenance portfolio, coupled with good results on certain new installations, enabled the business to generate higher earnings. JEC's profit also rose with improved sales and margins.

Jardine Restaurants' results reflected lower sales and pressure on margins in Hong Kong, although its operations in Taiwan performed better. JOS recorded a fall in earnings following a significant reduction in revenues. 

The outlook for the remainder of the year continues to be challenging.

Jardine Motors

Jardine Motors' underlying profit for the first half of 2009 was down 46% at US$17 million due to the impact of the economic downturn in the group's three markets. Its profit attributable to shareholders, which benefited from a recovery of VAT and the write-back of a provision on a prior year disposal, was 21% lower at US$26 million.

Zung Fu's performance in Hong Kong and Macau reflected reduced deliveries of Mercedes-Benz passenger cars and tighter margins in a new car market that was down by 42%. The company was able to maintain its leading position in the highly competitive luxury sector. Its aftersales business remained steady, and its commercial vehicle business benefited from good deliveries of government orders.  

Zung Fu's Mercedes-Benz dealerships in Southern China continued to grow with a 44% increase in new car deliveries over the same period last year. Its aftersales business achieved improved results from higher volumes. There was pressure on new car margins, however, and the overall performance was also held back by the start-up costs of new operations. The number of outlets reached 16, with a further outlet under development.  The United Kingdom witnessed significant weakening in new vehicle demand and margins. There was some recovery in used car margins, although average selling values remain depressed. Despite cost reductions and working capital improvements undertaken by the group, earnings were severely affected.

Market conditions in the second half of the year are not expected to improve materially. Nevertheless, the business is well placed to benefit when a recovery occurs.

Jardine Lloyd Thompson

In the first six months of 2009, Jardine Lloyd Thompson again achieved a good overall performance measured in its reporting currency of sterling. Trading conditions remained challenging with mixed insurance markets and the benefits of a stronger dollar being offset by lower returns on cash balances. Turnover increased to US$466 million for the period, up 16% in sterling, supported by good organic growth and the benefit of acquisitions. The underlying trading margin improved to 18% and underlying profit before tax was US$90 million, an increase of 12% in sterling. Its contribution to Jardine Matheson's underlying profit, however, fell 15% to US$20 million due to the marked decline in sterling in the period.

Jardine Lloyd Thompson's risk and insurance group, comprising its retail and specialist risk and insurance business, achieved good growth in both revenue and trading profit. Its employee benefits business in the United Kingdom produced a modest growth in revenue, although it has suffered from the more difficult economic conditions. Notwithstanding the unsettled outlook, however, the group remains in a good position to make further progress for the year as a whole.

Hongkong Land

Hongkong Land's underlying profit increased by 16% to US$281 million in the first half of the year as higher net rental income offset lower earnings from residential property. This represented a 21% increase in its contribution to Jardine Matheson's underlying profit at US$113 million. The valuation of Hongkong Land's commercial investment properties at the end of June produced an 8% reduction in value, the decline being most marked in Singapore where values fell by 28%. The resulting deficit, offset in part by an increase in the value of its investment properties under development which are required to be revalued for the first time, produced a loss attributable to shareholders of US$402 million. This compares with a profit of US$1,629 million in the first half of 2008. The consolidation of Hongkong Land for the first time at 30th June 2009 has resulted in significant changes to the face of the Jardine Matheson balance sheet.

A reduction in demand for office space in Hong Kong produced a vacancy rate of 5.5% in Hongkong Land's portfolio at the end of June, although its retail space remained fully leased. Its commercial property interests in Singapore remained fully let in a slowing market. Construction at Marina Bay Financial Centre in Singapore, in which Hongkong Land holds a one-third interest, is continuing on schedule for a two-phased completion in 2010 and 2012.

In the residential sector, MCL Land completed two projects in Singapore and its full-year result should also benefit from a further completion.  Hongkong Land's developments in mainland China are progressing well, and recent sales launches in Chongqing attracted a good response.  Construction is ongoing at its two Hong Kong residential development projects, one of which is scheduled for completion later this year and has achieved encouraging sales.  The residential and retail elements of its One Central joint venture development in Macau are due to complete in the second half of 2009.  

While operating conditions are likely to remain uncertain for the remainder of 2009, Hongkong Land is expected to produce a good result for the year as its pre-sold residential properties reach completion.

Dairy Farm

Dairy Farm achieved further growth in the first half of 2009. Sales, including 100% of associates, increased by 1% to US$3.8 billion, while underlying net profit was 10% higher at US$156 million; representing increases of 7% and 16%, respectively, at constant rates of exchange. At the Jardine Matheson level, the contribution to underlying profit was up 10% at US$98 million. Dairy Farm's profit attributable to shareholders was little changed from the first half of 2008, which had included a US$13 million non-recurring gain.  

The group's supermarket and health and beauty businesses in North Asia produced further profit growth, but those operations more exposed to discretionary spending, such as convenience stores, generally saw lower profits. The expansion of its health and beauty chain in mainland China is progressing well with the opening of new stores in cities such as Beijing, Shanghai, Nanjing and Chongqing.  Hong Kong restaurant associate, Maxim's, produced a reasonable result despite a decline in consumer spending in a difficult market.  

The group's businesses in Malaysia and Brunei increased their profit contributions. There were better results in Singapore, and the overall performance in Indonesia also continued to improve. Further opportunities for expansion are being sought in Vietnam, while in India the group's supermarket and health and beauty joint ventures concentrated on consolidating their market positions.

Dairy Farm's major businesses are expected to continue to trade well in the second half of 2009 and to produce a satisfactory performance for the full year.

Mandarin Oriental

Mandarin Oriental had a difficult first half and recorded an underlying profit for the six months of US$1 million, compared with US$36 million in 2008. There was a contribution of US$1 million to Jardine Matheson's underlying profit for the period, compared with a profit of US$23 million in 2008. The completion of sale of its interest in its Macau hotel enabled Mandarin Oriental to report a profit attributable to shareholders for the period of US$74 million, compared with US$36 million in 2008.

Occupancy levels across most of Mandarin Oriental's hotels were substantially below those achieved in the same period last year due to depressed demand resulting from the global economic downturn, while H1N1 influenza also had a negative impact on travel patterns. Average room rates were also negatively affected, particularly in Asia. The results in Europe were less influenced by the economic conditions as demand for leisure travel, particularly in London, remained relatively resilient. It is expected that market conditions will remain poor for the remainder of the year.  

Mandarin Oriental currently operates 23 hotels and has a further 18 under development. These comprise 17 properties in Asia, 14 in The Americas and ten in Europe and North Africa representing approximately 10,000 rooms in 25 countries. Over the next six months, Mandarin Oriental plans to open hotels in Barcelona, Marrakech and Las Vegas. The group continues to liaise with the developers on the timing of its other hotels under development, all of which, except Paris, are management contracts. 

Jardine Cycle & Carriage

Most of Jardine Cycle & Carriage's major businesses were affected by the global economic downturn. Revenue was down 19% at US$4.6 billion for the half year, and underlying profit fell by 23% to US$203 million. Profit attributable to shareholders at US$207 million showed a decline of 22% after accounting for a non-trading gain of US$4 million.  

Astra's contribution to the underlying profit of Jardine Cycle & Carriage was 22% lower at US$197 million, due in part to the weaker average rupiah exchange rate, while the contribution to underlying profit from Jardine Cycle & Carriage's other motor interests was 17% down at US$21 million.  At the Jardine Matheson level, Astra's contribution to underlying profit was down 18% to US$104 million, while that of the other motor interests was 15% lower at US$11 million.  

There were weaker performances by the Singapore motor operations and 38%-owned Indonesian associate, Tunas Ridean. In Malaysia, 59%-owned Cycle & Carriage Bintang's results benefited from lower overheads following a restructuring in 2008. Truong Hai Auto Corporation in Vietnam, in which an initial interest was acquired in July 2008, made a modest contribution to profit. A further 4.4% interest was purchased in June 2009 for US$15 million, raising the shareholding to 25%.  

Astra 

Astra saw reduced earnings from its motor and palm oil activities. It produced a net profit, under Indonesian accounting standards, equivalent to US$384 million, a decrease of 11% in its reporting currency, the rupiah.

Weaker consumer demand resulted in the Indonesian wholesale motor vehicle market falling by 28% to 210,000 units in the first half of 2009. Astra's automotive sales fell at a lower rate of 18%, producing an improved market share of 58%. The wholesale motorcycle market declined by 17% to 2.5 million units during the same period. Astra Honda Motors' sales declined at a similar rate, maintaining its market share at 46%. Component manufacturer, Astra Otoparts, reported an 18% decrease in net income.  Growth in their overall loan books enabled Astra's consumer finance operations to achieve an increase in profit. Higher net interest and other operating income produced an 18% rise in net profit for Bank Permata. 

Astra's heavy equipment subsidiary, United Tractors, performed well and recorded a 55% rise in earnings. Sales of Komatsu equipment fell by 44%, although the profit was slightly better due to the sales mix. Mining subsidiary, Pamapersada Nusantara, made good progress with an increase of 3% in coal extracted to 30 million tonnes and an increase of 30% in overburden removed to 272 million bcm. Astra Agro Lestari reported a 52% decline in its profits as crude palm oil prices achieved were on average 23% down on the previous year. Astra's information technology activities suffered from reduced margins, while its infrastructure investments performed satisfactorily. 

While Astra's operations have seen some recent improvement, it remains to be seen whether this recovery can be sustained.

Jardine Matheson Holdings Limited
Consolidated Profit and Loss Account
							(unaudited)
							Six months ended 30th June								Year ended 31st December
					2009						2008				2008
			Underlying						Underlying						Underlying
			business		Non-trading				business		Non-trading				business		Non-trading
			performance		items		Total		performance		items		Total		performance		items		Total
			US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
Revenue (note 2)			9,766		-		9,766		11,467		-		11,467		22,362		-		22,362
Net operating costs (note 3)			(8,934)		19		(8,915)		(10,432)		17		(10,415)		(20,541)		(139)		(20,680)
Operating profit			832		19		851		1,035		17		1,052		1,821		(139)		1,682
Financing charges			(58)		-		(58)		(76)		-		(76)		(142)		-		(142)
Financing income			37		-		37		48		-		48		96		-		96
Net financing charges			(21)		-		(21)		(28)		-		(28)		(46)		-		(46)
Share of results of associates   and joint ventures (note 4)			289		(287)		2		345		677		1,022		622		(242)		380
Net discount on acquisition of   Hongkong Land (note 5)			-		53		53		-		-		-		-		83		83
Sale of associates and joint   ventures (note 6)			-		76		76		-		12		12		-		15		15
Profit before tax			1,100		(139)		961		1,352		706		2,058		2,397		(283)		2,114
Tax (note 7)			(241)		(2)		(243)		(319)		(3)		(322)		(508)		37		(471)
Profit after tax			859		(141)		718		1,033		703		1,736		1,889		(246)		1,643
Attributable to:
Shareholders of the Company			389		(140)		249		448		570		1,018		822		(156)		666
Minority interests			470		(1)		469		585		133		718		1,067		(90)		977
			859		(141)		718		1,033		703		1,736		1,889		(246)		1,643
							US$						US$						US$
Earnings per share (note 8)
- basic							0.70						2.89						1.89
- diluted							0.70						2.81						1.88

Jardine Matheson Holdings Limited
Consolidated Statement of Comprehensive Income
				(unaudited) Six months ended 30th June						Year Ended 31st December
		2009				2008				2008
		US$m				US$m				US$m
Profit for the period		718				1,736				1,643
Revaluation of intangible assets		-				-				13
Revaluation of properties		-				-				22
Revaluation of other investments
- gains/(losses) arising during the period		88				(147)				(248)
- transfer to profit and loss		-				(1)				3
		88				(148)				(245)
Actuarial (losses)/gains on employee
Benefit plans		(6)				4				(226)
Net exchange translation differences
- gains/(losses) arising during the period		290				106				(799)
Cash flow hedges
- (losses)/gains arising during the period		(25)				14				(18)
- transfer to profit and loss		1				1				1
		(24)				15				(17)
Share of other comprehensive income of
associates and joint ventures		(2)				(10)				(168)
Tax relating to components of other
comprehensive income (note 7)		7				(2)				108
Other comprehensive income for the period		353				(35)				(1,312)
Total comprehensive income for the period		1,071				1,701				331
Attributable to:
Shareholders of the Company		359				931				(66)
Minority interests		712				770				397
		1,071				1,701				331

Jardine Matheson Holdings Limited
Consolidated Balance Sheet
						(unaudited) At 30th  June				At 31st December
		2009				2008				2008
		US$m				US$m				US$m
Assets
Intangible assets		2,068				2,008				1,979
Tangible assets		3,644				3,518				3,310
Investment properties		13,275				361				352
Plantations		411				560				353
Associates and joint ventures		4,244				8,795				7,807
Other investments		694				623				583
Non-current debtors		1,126				1,146				1,037
Deferred tax assets		112				121				101
Pension assets		35				215				28
Non-current assets		25,609				17,347				15,550
Properties for sale		817				-				-
Stocks and work in progress		1,728				1,805				1,960
Current debtors		2,737				2,665				2,188
Current investments		2				37				4
Current tax assets		91				90				80
Bank balances and other liquid funds
- non-financial services companies		3,527				2,191				2,065
- financial services companies		144				158				183
		3,671				2,349				2,248
		9,046				6,946				6,480

Non-current assets classified as held for
sale (note 10)		82				48				68
Current assets		9,128				6,994				6,548
Total assets		34,737				24,341				22,098

Equity
Share capital		158				155				156
Share premium and capital reserves		41				32				37
Revenue and other reserves		9,451				10,118				9,076
Own shares held		(1,161)				(998)				(1,021)
Shareholders' funds		8,489				9,307				8,248
Minority interests		11,242				5,707				5,300
Total equity		19,731				15,014				13,548
Liabilities
Long-term borrowings
- non-financial services companies		5,388				1,970				2,039
- financial services companies		535				648				563
		5,923				2,618				2,602
Deferred tax liabilities		2,330				675				456
Pension liabilities		159				114				142
Non-current creditors		184				84				140
Non-current provisions		63				46				57
Non-current liabilities		8,659				3,537				3,397
Current creditors		4,306				3,874				3,493
Current borrowings
- non-financial services companies		891				720				571
- financial services companies		812				849				798
		1,703				1,569				1,369
Current tax liabilities		291				270				236
Current provisions		47				71				55

6,347

5,784

5,153

Liabilities directly associated with non-current
assets classified as held for sale (note 10)		-				6				-
Current liabilities		6,347				5,790				5,153
Total liabilities		15,006				9,327				8,550
Total equity and liabilities		34,737				24,341				22,098

Jardine Matheson Holdings Limited
Consolidated Statement of Changes in Equity
												Attributable to shareholders of the Company
																Asset												Own								Attributable
	Share				Share				Capital			Revenue				revaluation				Hedging				Exchange				shares								to minority				Total
	capital				premium				reserves			reserves				reserves				reserves				reserves				held				Total				interests				equity
	US$m				US$m				US$m			US$m				US$m				US$m				US$m				US$m				US$m				US$m				US$m
Six months ended 30th June 2009
At 1st January 2009	156				3				34			9,050				331				(45)				(260)				(1,021)				8,248				5,300				13,548
Total comprehensive income	-				-				-			249				28				21				61				-				359				712				1,071
Dividends paid by the Company (note 11)	-				-				-			(181)				-				-				-				-				(181)				32				(149)
Dividends paid to minority shareholders	-				-				-			-				-				-				-				-				-				(257)				(257)
Issue of shares	-				1				-			-				-				-				-				-				1				-				1
Employee share option schemes	-				-				5			-				-				-				-				-				5				1				6
Scrip issued in lieu of dividends	2				(2)				-			202				-				-				-				-				202				-				202
Increase in own shares held	-				-				-			-				-				-				-				(140)				(140)				(29)				(169)
New subsidiary undertakings	-				-				-			-				-				-				-				-				-				5,510				5,510
Capital contribution from minority
Shareholders	-				-				-			-				-				-				-				-				-				3				3
Change in attributable interests	-				-				-			(5)				-				-				-				-				(5)				(30)				(35)
Transfer	-				-				-			31				(31)				-				-				-				-				-				-
At 30th June 2009	158				2				39			9,346				328				(24)				(199)				(1,161)				8,489				11,242				19,731
Six months ended 30th June 2008
At 1st January 2008	155				-				25			8,932				313				(3)				24				(956)				8,490				5,208				13,698
Total comprehensive income	-				-				-			864				-				7				60				-				931				770				1,701
Dividends paid by the Company (note 11)	-				-				-			(158)				-				-				-				-				(158)				28				(130)
Dividends paid to minority shareholders	-				-				-			-				-				-				-				-				-				(262)				(262)
Issue of shares	-				2				-			-				-				-				-				-				2				-				2
Employee share option schemes	-				-				5			-				-				-				-				-				5				1				6
Scrip issued in lieu of dividends	-				-				-			79				-				-				-				-				79				-				79
Increase in own shares held	-				-				-			-				-				-				-				(42)				(42)				(7)				(49)
New subsidiary undertakings	-				-				-			-				-				-				-				-				-				50				50
Subsidiary undertakings disposed of	-				-				-			-				-				-				-				-				-				(25)				(25)
Capital contribution from minority
shareholders	-				-				-			-				-				-				-				-				-				6				6
Change in attributable interests	-				-				-			-				-				-				-				-				-				(62)				(62)
At 30th June 2008	155				2				30			9,717				313				4				84				(998)				9,307				5,707				15,014
Jardine Matheson Holdings Limited
Consolidated Statement of Changes in Equity
													Attributable to shareholders of the Company
																	Asset												Own								Attributable
	Share			Share				Capital					Revenue				revaluation				Hedging				Exchange				shares								to minority				Total
	capital			premium				Reserves					reserves				reserves				reserves				reserves				held				Total				interests				equity
	US$m			US$m				US$m					US$m				US$m				US$m				US$m				US$m				US$m				US$m				US$m
Year ended 31st December 2008
At 1st January 2008	155			-				25					8,932				313				(3)				24				(956)				8,490				5,208				13,698
Total comprehensive income	-			-				-					240				20				(42)				(284)				-				(66)				397				331
Dividends paid by the Company	-			-				-					(243)				-				-				-				-				(243)				43				(200)
Dividends paid to minority shareholders	-			-				-					-				-				-				-				-				-				(398)				(398)
Issue of shares	-			4				-					-				-				-				-				-				4				-				4
Employee share option schemes	-			-				9					-				-				-				-				-				9				3				12
Scrip issued in lieu of dividends	1			(1)				-					119				-				-				-				-				119				-				119
Increase in own shares held	-			-				-					-				-				-				-				(65)				(65)				(11)				(76)
New subsidiary undertakings	-			-				-					-				-				-				-				-				-				28				28
Subsidiary undertakings disposed of	-			-				-					-				-				-				-				-				-				(24)				(24)
Capital contribution from minority
shareholders	-			-				-					-				-				-				-				-				-				157				157
Change in attributable interests	-			-				-					-				-				-				-				-				-				(103)				(103)
Transfer	-			-				-					2				(2)				-				-				-				-				-				-
At 31st December 2008	156			3				34					9,050				331				(45)				(260)				(1,021)				8,248				5,300				13,548
Total comprehensive income for the six months ended 30th June 2009 included in revenue reserves comprises profit attributable to shareholders of the Company of US$249 million (2008: US$1,018 million), fair value gains on revaluation of other investments of US$33 million (2008: losses of US$155 million) and actuarial losses on employee benefit plans of US$33 million (2008: gains of US$1 million).
Total comprehensive income for the year ended 31st December 2008 included in revenue reserves comprises profit attributable to shareholders of the Company of US$666 million, fair value losses on revaluation of other investments of US$227 million and actuarial losses on employee benefit plans of US$199 million.

Jardine Matheson Holdings Limited
Consolidated Cash Flow Statement
					(unaudited)					Year ended
				Six months ended						31st
						30th June				December
		2009				2008				2008
		US$m				US$m				US$m
Operating activities
Operating profit		851				1,052				1,682
Depreciation and amortization		274				267				520
Other non-cash items		(21)				75				361
Decrease/(increase) in working capital		22				(354)				(465)
Interest received		31				47				99
Interest and other financing charges paid		(59)				(81)				(149)
Tax paid		(283)				(235)				(443)
		815				771				1,605
Dividends from associates and joint ventures		257				332				495
Cash flows from operating activities		1,072				1,103				2,100
Investing activities
Purchase of Hongkong Land (note 12(a))		1,082				(90)				(97)
Purchase of other subsidiary undertakings (note 12(b))		(35)				(286)				(441)
Purchase of associates and joint ventures (note 12(c))		(18)				(8)				(108)
Purchase of other investments (note 12(d))		(50)				(74)				(204)
Purchase of land use rights		(21)				(51)				(53)
Purchase of other intangible assets		(20)				(14)				(40)
Purchase of tangible assets		(391)				(320)				(838)
Purchase of investment properties		(3)				(2)				(10)
Purchase of plantations		(32)				(34)				(71)
Advance of mezzanine loans		-				(2)				(1)
Capital distribution from associates		-				22				23
Sale of subsidiary undertakings (note 12(e))		-				(38)				(33)
Sale of associates and joint ventures (note 12(f))		93				27				27
Sale of other investments (note 12(g))		21				19				82
Sale of land use rights		1				7				9
Sale of tangible assets		15				10				64
Sale of investment properties		-				9				9
Sale of plantations		-				-				14
Cash flows from investing activities		642				(825)				(1,668)
Financing activities
Issue of shares		1				2				4
Capital contribution from minority shareholders		3				6				157
Drawdown of borrowings		3,465				7,200				12,850
Repayment of borrowings		(3,531)				(7,060)				(12,649)
Dividends paid by the Company		(116)				(101)				(157)
Dividends paid to minority shareholders		(153)				(117)				(398)
Cash flows from financing activities		(331)				(70)				(193)
Effect of exchange rate changes		46				19				(103)
Net increase in cash and cash equivalents		1,429				227				136
Cash and cash equivalents at beginning of period		2,218				2,082				2,082
Cash and cash equivalents at end of period		3,647				2,309				2,218

Jardine Matheson Holdings Limited
Analysis of Profit Contribution
				(unaudited)		ended
		Six months ended				31st
				30th June		December
		2009		2008		2008
		US$m		US$m		US$m
Operating segment
Jardine Pacific		43		55		116
Jardine Motors		17		32		44
Jardine Lloyd Thompson		20		23		38
Hongkong Land		113		93		145
Dairy Farm		98		89		202
Mandarin Oriental		1		23		42
Jardine Cycle & Carriage		11		13		23
Astra		104		127		238
		407		455		848
Corporate and other interests		(18)		(7)		(26)
Underlying profit attributable to shareholders*		389		448		822
(Decrease)/increase in fair value of investment
properties		(267)		551		(214)
Other non-trading items		127		19		58
Profit attributable to shareholders		249		1,018		666
Analysis of Jardine Pacific's contribution
Gammon		9		10		22
HACTL		9		15		32
Jardine Aviation Services		1		2		5
JEC		5		4		14
JOS		4		6		11
Jardine Property Investment		1		1		3
Jardine Restaurants		6		9		13
Jardine Schindler		12		10		18
Jardine Shipping Services		1		3		5
Corporate and other interests		(5)		(5)		(9)
Continuing businesses		43		55		114
Discontinued businesses		-		-		2
		43		55		116
Analysis of Jardine Motors' contribution
Hong Kong and Mainland China		14		23		45
United Kingdom		3		9		-
Corporate		-		-		(1)
		17		32		44
* 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 not been audited or reviewed by the Group's auditor pursuant to the UK Auditing Practices Board guidance on the review of interim financial information.
	In 2009, the Group adopted the following standards, and amendments and interpretations to existing standards which are effective in the current accounting period and relevant to its operations:
	IFRS 8		Operating Segments
	IAS 1 (revised 2007)		Presentation of Financial Statements
	IAS 23 (revised 2007)		Borrowing Costs
	Amendments to IFRS 1		Cost of an Investment in a Subsidiary, Jointly
	and IAS 27		Controlled Entity or Associate
	Amendment to IFRS 2		Vesting Conditions and Cancellations
	Amendments to IFRS 7		Improving Disclosures about Financial Instruments
	IFRIC 13		Customer Loyalty Programmes
	IFRIC 15		Agreements for the Construction of Real Estate
	IFRIC 16		Hedges of a Net Investment in a Foreign Operation
	Improvements to IFRSs (2008)
	With the exception of amendments to IFRS 1 and IAS 27, IFRIC 13, and amendments to IAS 16 and IAS 40 included in the 2008 improvement project, there are no changes in accounting policies that affect the Group's financial statements resulting from adoption of the above standards, amendments and interpretations as they are consistent with the policies already adopted by the Group.
	IFRS 8 'Operating Segments' supersedes IAS 14 'Segment Reporting' and requires the reporting of financial and descriptive information about an entity's reportable segments on the basis of internal reports that are regularly reviewed by its management. There is no change in the Group's reportable segments from 2008 as they remain consistent with the internal reporting provided to management. The Group's reportable segments are set out on page 16. Further information on each operating segment is described on page 4 of the Company's 2008 Annual Report. No operating segments have been aggregated to form the reportable segments.
	As a result of adoption of IAS 1 (revised 2007), two new primary statements, 'Consolidated Statement of Comprehensive Income' and 'Consolidated Statement of Changes in Equity' have been presented in these interim financial statements. The former replaces the 'Consolidated Statement of Recognized Income and Expense' presented in the 2008 annual financial statements. This change in presentation has no effect on reported profit or loss, total income and expense or net assets for any period presented.
	Amendments to IFRS 1 and IAS 27 'Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate' remove the definition of the cost method from IAS 27 and allow an entity to recognize a dividend from subsidiary, jointly controlled entity or associate in profit and loss in its separate financial statements when its right to receive the dividend is established. There is no impact on the consolidated financial statements as the changes only affect the separate financial statements of the investing entity.
	IFRIC 13 'Customer Loyalty Programmes' addresses the accounting by entities that grant loyalty award credits to customers who buy goods or services. It requires that the consideration receivable from the customer is allocated between the separately identifiable components of the sale transaction using fair values. There is no significant impact on the results of the Group on adoption of this interpretation.
	The improvements to IFRSs (2008) comprise amendments to a number of IFRSs, of which the following two amendments have impact on the Group's financial statements.
	Amendment to IAS 16 'Property, Plant and Equipment' and the consequential amendment to IAS 7 'Statement of Cash Flows' specifies that entities whose ordinary activities include renting and subsequently selling the same items of property, plant and equipment should transfer such assets to stocks at their carrying amounts when they cease to be rented and become held for sale. The cash flows arising from the purchase, rental and subsequent sale of those assets should be classified as cash flows from operating activities. There is no significant impact on the results of the Group on adoption of these amendments. The comparative figures in the Consolidated Cash Flow Statement have been reclassified to conform with the current period presentation.
	Amendments to IAS 40 'Investment Property' requires investment property under construction to be carried at fair value at the earlier of when the fair value first becomes reliably measurable and the date of completion of the property with any gain or loss recognized in profit and loss. This is a change in accounting policy as previously such property was carried at cost until the construction was completed.
	The Group also early adopted the following standard and amendment to an existing standard which are relevant to its operations:
	IFRS 3 (revised 2008)	Business Combinations
	Amendment to IAS 27	Consolidated and Separate Financial Statements
	IFRS 3 (revised) and the related amendment to IAS 27 (both effective prospectively from 1st July 2009) require the immediate expensing of all acquisition-related costs, the inclusion in the cost of acquisition of the fair value at acquisition date of any contingent purchase consideration, the remeasurement of previously held equity interest in the acquiree at fair value in a business combination achieved in stages, and accounting for changes in a parent's ownership interest in a subsidiary undertaking that do not result in the loss of control as equity transactions. The early adoption of IFRS 3 (revised) and the related amendment to IAS 27 has resulted in changes in the Group's accounting policies for goodwill and change in attributable interests in subsidiary undertakings. Until 31st December 2008, acquisition-related costs were included in the cost of a business combination; contingent purchase consideration was recognized in goodwill as incurred; the cost of each exchange transaction in a business combination achieved in stages was compared with the fair values of the acquiree's identifiable net assets to determine the amount of good will associated with that transaction; the difference between the cost of acquisition and the carrying amount of the proportion of minority interest acquired in respect of an increase in attributable interest in a subsidiary undertaking was recognized as goodwill or credited to the consolidated profit and loss account as discount on acquisition, where appropriate; and the difference between the proceeds and the carrying amount of the proportion sold in respect of a decrease in attributable interest in a subsidiary undertaking was recognized in the consolidated profit and loss account as profit or loss on disposal. The Group continues to measure minority interest in an acquiree in a business combination at the minority interest's proportionate share of the acquiree's identifiable net assets.
	In addition, on implementation of IFRS 8, the Group early adopted an amendment to IFRS 8 'Operating Segments' (effective from 1st January 2010) included in the 2009 improvement project. The amendment clarifies that a measure of total assets should be disclosed in the financial statements only if that amount is regularly provided to management.
	There have been no other changes to the accounting policies described in the 2008 annual financial statements.
	Certain comparative figures have been reclassified to conform with the current period presentation.

2.	Revenue
		Six months ended 30th June
		2009		2008
		US$m		US$m
	Jardine Pacific	503		598
	Jardine Motors	1,088		1,567
	Dairy Farm	3,353		3,315
	Mandarin Oriental	205		266
	Jardine Cycle & Carriage	550		691
	Astra	4,065		5,028
	Other activities	2		2
		9,766		11,467

3.	Net Operating Costs
	Six months ended 30th June
		2009		2008
		US$m		US$m
	Cost of sales	(7,338)		(8,745)
	Other operating income	110		93
	Selling and distribution costs	(1,167)		(1,228)
	Administration expenses	(504)		(522)
	Other operating expenses	(16)		(13)
		(8,915)		(10,415)
	Net operating costs included the following gains/(losses)
	from non-trading items:
	Increase in fair value of investment properties	10		10
	Asset impairment	(4)		-
	Sale and closure of businesses	6		4
	Sale of investments	-		1
	Sale of property interests	-		3
	Change in attributable interest in a subsidiary undertaking	-		(2)
	Value added tax recovery in Jardine Motors	3		2
	Repurchase of convertible bonds in Hongkong Land	4		-
	Other	-		(1)
		19		17
4.	Share of Results of Associates and Joint Ventures
		Six months ended 30th June
		2009		2008
		US$m		US$m
	Jardine Pacific	34		48
	Jardine Lloyd Thompson	20		23
	Hongkong Land	(202)		782
	Dairy Farm	10		12
	Mandarin Oriental	(1)		9
	Jardine Cycle & Carriage	9		5
	Astra	87		127
	Corporate and other interests	45		16
		2		1,022
	Share of results of associates and joint ventures included
	the following gains/(losses) from non-trading items:
	(Decrease)/increase in fair value of investment properties	(339)		668
	Asset impairment	(2)		-
	Sale and closure of businesses	4		4
	Sale of investments	-		3
	Sale of property interests	-		2
	Derecognition of perpetual liabilities in Rothschilds Continuation*	50		-
		(287)		677
	Results are shown after tax and minority interests in the associates and joint ventures.
*	Fair value gain arising on reclassification of perpetual notes to equity following removal of the contractual obligation to repay principal or to pay interest on those notes.

5.	Net Discount on Acquisition of Hongkong Land
	During the period, Jardine Strategic acquired an additional 0.9% interest in Hongkong Land increasing its holding to 50.01%. Due to the proximity to 30th June 2009 when the Group obtained legal control of Hongkong Land, this date has been taken as the effective date of acquisition.
	In accordance with IFRS 3 (revised), the Group remeasured its previously held interest in Hongkong Land at the acquisition date fair value calculated by reference to the quoted share price on that date and recognized the resulting loss, including reclassification adjustments of amounts previously recognized in other comprehensive income, in profit and loss. The Group simultaneously recognized in profit and loss a discount on acquisition, being the excess of the fair value of identifiable net assets over the fair value of the previously held interest (refer note 12(a)).
	Six months ended 30th June
		2009		2008
		US$m		US$m
	Discount on increased interest prior to the date of acquisition	54		-
	Fair value loss on remeasurement of previously held interest	(1,642)		-
	Discount on acquisition	1,641		-
		53		-

6.	Sale of Associates and Joint Ventures
	Six months ended 30th June
		2009		2008
		US$m		US$m
	Sale of associates and joint ventures included the
	following items:
	50% interest in Mandarin Oriental, Macau	76		-
	50% interest in Olive Young	-		12
		76		12

7.	Tax
	Six months ended 30th June
		2009		2008
		US$m		US$m
	Tax charged to profit and loss is analyzed as follows:
	Current tax	242		335
	Deferred tax	1		(13)
		243		322
	Greater China	25		30
	Southeast Asia	217		285
	United Kingdom	2		7
	Rest of the world	(1)		-
		243		322
	Tax relating to components of other comprehensive income
	is analyzed as follows:
	Actuarial (losses)/gains on employee benefit plans	(1)		(1)
	Cash flow hedges	(6)		3
		(7)		2
	Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates.
	Share of tax of associates and joint ventures of US$13 million and US$7 million (2008: US$150 million and credit of US$3 million) are included in share of results of associates and joint ventures and share of other comprehensive income of associates and joint ventures respectively.

8.	Earnings per Share
	Basic earnings per share are on profit attributable to shareholders of US$249 million (2008: US$1,018 million) and on the weighted average number of 354 million (2008: 353 million) shares in issue during the period.
	Diluted earnings per share are calculated on profit attributable to shareholders of US$249 million (2008: US$994 million), which is after adjusting for the effects of the conversion of dilutive potential ordinary shares of subsidiary undertakings, associates or joint ventures, and on the weighted average number of 355 million (2008: 354 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
		2009		2008
	Weighted average number of shares in issue	626		621
	Shares held by the Trustee under the Senior Executive
	Share Incentive Schemes	(1)		(1)
	Company's share of shares held by subsidiary
	undertakings	(271)		(267)
	Weighted average number of shares for basic earnings
	per share calculation	354		353
	Adjustment for shares deemed to be issued for no
	consideration under the Senior Executive Share
	Incentive Schemes	1		1
	Weighted average number of shares for diluted earnings
	per share calculation	355		354

		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
					2009						2008
					Basic		Diluted				Basic		Diluted
					earnings		earnings				earnings		earnings
					per share		per share				per share		per share
			US$m		US$		US$		US$m		US$		US$
	Profit attributable to shareholders		249		0.70		0.70		1,018		2.89		2.81
	Non-trading items (note 9)		140						(570)
	Underlying profit attributable to
	shareholders		389		1.10		1.09		448		1.27		1.27

9.	Non-trading Items
	Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance. Items classified as non-trading items include fair value gains or losses on revaluation of investment properties and plantations; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets and other investments; provisions for the closure of businesses; 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.
	An analysis of non-trading items after interest, tax and minority interests is set out below:
	Six months ended 30th June

			2009				2008
			US$m				US$m
	(Decrease)/increase in fair value of investment properties
	- Hongkong Land		(275)				541
	- other		8				10
			(267)				551
	Asset impairment		(4)				-
	Sale and closure of businesses
	- 50% interest in Mandarin Oriental, Macau		45				-
	- 50% interest in Olive Young		-				8
	- other		8				4
			53				12
	Sale of investments		-				3
	Sale of property interests		-				3
	Change in attributable interest in a subsidiary undertaking		-				(1)
	Value added tax recovery in Jardine Motors		3				2
	Derecognition of perpetual liabilities in Rothschilds
	Continuation*		40				-
	Repurchase of convertible bonds in Hongkong Land		3				-
	Net discount on acquisition of Hongkong Land		32				-
			(140)				570
*	Fair value gain arising on reclassification of perpetual notes to equity following removal of the contractual obligation to repay principal or to pay interest on those notes.

10.	Non-current Assets Classified as Held for Sale
	The major classes of assets and liabilities classified as held for sale are set out below:
	At 30th June					At 31st December
		2009		2008		2008
		US$m		US$m		US$m
	Intangible assets	15		-		15
	Tangible assets	67		41		53
	Current assets	-		7		-
	Total assets	82		48		68
	Deferred tax liabilities	-		1		-
	Current liabilities	-		5		-
	Total liabilities	-		6		-
	At 30th June 2009, the non-current assets classified as held for sale comprised Dairy Farm's interest in three retail properties in Malaysia. Two of these properties were held on 31st December 2008 at a carrying amount of US$65 million. All three properties are expected to be disposed of during the second half of 2009.

11.	Dividends
		Six months ended 30th June
			2009		2008
			US$m		US$m
	Final dividend in respect of 2008 of US¢51.00
	(2007: US¢45.00) per share		318		278
	Company's share of dividends paid on the shares
	held by subsidiary undertakings		(137)		(120)
			181		158
	An interim dividend in respect of 2009 of US¢25.00 (2008: US¢24.00) per share amounting to a total of US$158 million (2008: US$149 million) is declared by the Board. The net amount after deducting the Company's share of the dividends payable on the shares held by subsidiary undertakings of US$69 million (2008: US$64 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2009.

12.	Notes to Consolidated Cash Flow Statement		6 Months Ended 30th June 2009
	(a)	Purchase of Hongkong Land
			US$m
		Tangible assets	6
		Investment properties	12,911
		Joint ventures	1,987
		Deferred tax assets	4
		Pension assets	6
		Non-current debtors	69
		Current assets	2,246
		Long-term borrowings	(3,509)
		Deferred tax liabilities	(1,864)
		Non-current creditors	(23)
		Current liabilities	(915)
		Minority interests	(102)
		Provisional fair value of net assets	10,816
		Adjustment for minority interests	(5,408)
		Net assets acquired	5,408
		Discount on acquisition	(1,641)
		Fair value of previously held interest	3,767
		Discount on increased interest prior to the date of acquisition	(54)
		Carrying amount of previously held interest	(5,368)
		Fair value loss on remeasurement of previously held interest	1,642
		Reclassification adjustments of other comprehensive income	61
		Cash and cash equivalents of Hongkong Land at the date of acquisition	(1,130)
		Cash inflow	(1,082)
		The carrying amount of Hongkong Land’s assets and liabilities at 30th June 2009 has been taken as the provisional fair value. The fair values of identifiable assets and liabilities at the date of acquisition will be finalized at the year end.
		Had Hongkong Land been consolidated from 1st January 2009, consolidated revenue and consolidated profit after tax for the six months ended 30th June 2009 would have been US$10,288 million and US$533 million respectively.

	Six months ended 30th June
			2009		2008
	(b)	Purchase of other subsidiary undertakings	US$m		US$m
		Intangible assets	-		4
		Tangible assets	-		232
		Current assets	-		3
		Deferred tax liabilities	-		(70)
		Current liabilities	-		(2)
		Fair value of net assets	-		167
		Adjustment for minority interests	-		(50)
		Net assets acquired	-		117
		Goodwill	-		4
		Total consideration	-		121
		Adjustment for carrying value of associates and
		Joint ventures	-		(1)
		Net cash outflow	-		120
		Increase in interest in Jardine Strategic	-		19
		Increase in interest in Mandarin Oriental	7		1
		Increase in interest in Jardine Cycle & Carriage	28		86
		Increase in interests in other subsidiary undertakings	-		60
			35		286
		Net cash outflow in 2008 of US$120 million included US$116 million for PT United Tractors' acquisition of a 70% interest in a company which holds coal mining rights in Central Kalimantan.
		Increase in interests in other subsidiary undertakings in 2008 included US$42 million for Dairy Farm's acquisition of an additional 25% interest in PT Hero Supermarket under a put option and US$14 million for Astra's increased interest in PT Astra Otoparts.
	(c)	Purchase of associates and joint ventures for the six months ended 30th June 2009 included US$15 million for Jardine Cycle & Carriage's acquisition of an additional 4% interest in Truong Hai Auto Corporation.

	(d)	Purchase of other investments for the six months ended 30th June 2009 included US$50 million for Astra's purchase of securities. and US$22 million and US$6 million for Jardine Strategic's purchase of shares in Paris Orléans and subscription for Asia Commercial Bank convertible bonds respectively.
		Six months ended 30th June
			2009		2008
	(e)	Sale of subsidiary undertakings	US$m		US$m
		Intangible assets	-		1
		Tangible assets	-		4
		Associates and joint ventures	-		2
		Non-current debtors	-		2
		Deferred tax assets	-		4
		Current assets	-		99
		Current liabilities	-		(30)
		Net assets	-		82
		Adjustment for minority interests	-		(25)
		Net assets disposed of	-		57
		Profit on disposal	-		4
		Sale proceeds	-		61
		Adjustment for carrying value of associates and
		joint ventures	-		(37)
		Cash and cash equivalents of subsidiary undertakings
		disposed of	-		(62)
		Net cash outflow	-		(38)
		Sale proceeds in 2008 of US$61 million included US$51 million from Astra's sale of a 15% interest in PT Pantja Motor, reducing its effective interest from 65% to 50%.
	(f)	Sale of associates and joint ventures for the six months ended 30th June 2009 included US$91 million from Mandarin Oriental's sale of its 50% interest in Mandarin Oriental, Macau.  Sale of associates and joint ventures for the six months ended 30th June 2008 included US$21 million from Dairy Farm's sale of its 50% interest in Olive Young.
	(g)	Sale of other investments for the six months ended 30th June 2009 and 2008 mainly comprised Astra's sale of securities.
13.	Capital Commitments and Contingent Liabilities
	Total capital commitments at 30th June 2009 and 31st December 2008 amounted to US$2,179 million and US$483 million respectively
	Various Group companies are involved in litigation arising in the ordinary course of their respective businesses. Having reviewed outstanding claims and taking into account legal advice received, the Directors are of the opinion that adequate provisions have been made in the condensed financial statements.
14.	Related Party Transactions
	In the normal course of business the Group undertakes a variety of transactions with certain of its associates and joint ventures.
	The most significant of such transactions relate to the purchase of motor vehicles and spare parts from the Group's associates and joint ventures in Indonesia including PT Toyota-Astra Motor, PT Astra Honda Motor and PT Astra Daihatsu Motor. Total cost of motor vehicles and spare parts purchased from associates and joint ventures for the six months ended 30th June 2009 amounted to US$1,465 million (2008: US$1,975 million).
	There were no other related party transactions that might be considered to have a material effect on the financial position or performance of the Group that were entered into or changed during the first six months of the current financial year.
15.	Post Balance Sheet Event
	In July, the Group disposed of its 20% interest in Tata Industries for approximately US$158 million and has reinvested the funds in a shareholding of approximately 3% in the publicly-listed Tata Power Company.

Jardine Matheson Holdings Limited
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain relevant in the second half of the year:
•	Economic Risk
•	Commercial Risk and Financial Risk
•	Concessions, Franchises and Key Contracts
•	Regulatory and Political Risk
•	Terrorism, Pandemic and Natural Disasters
For greater detail, please refer to page 98 of the Company's Annual Report for 2008, a copy of which is available on the Company's website www.jardines.com.
Responsibility Statement
The Directors of the Company confirm to the best of their knowledge that:
(a)		the condensed financial statements have been prepared in accordance with IAS 34; and
(b)		the interim management report includes a fair review of all information required to be disclosed by the Disclosure and Transparency Rules 4.2.7 and 4.2.8 issued by the Financial Services Authority of the United Kingdom.
For and on behalf of the Board
A.J.L. Nightingale
James Riley
Directors
7th August 2009
The interim dividend of US¢25.00 per share will be payable on 21st October 2009 to shareholders on the register of members at the close of business on 28th August 2009, and will be available in cash with a scrip alternative. The ex-dividend date will be on 26th August 2009, and the share registers will be closed from 31st August to 4th September 2009, inclusive. Shareholders will receive their cash dividends in United States dollars, unless they are registered on the Jersey branch register where they will have the option to elect for sterling. These shareholders may make new currency elections for the 2009 interim dividend by notifying the United Kingdom transfer agent in writing by 2nd October 2009. The sterling equivalent of dividends declared in United States dollars will be calculated by reference to a rate prevailing on 7th October 2009. Shareholders holding their shares through The Central Depository (Pte) Limited ('CDP') in Singapore will receive United States dollars unless they elect, through CDP, to receive Singapore dollars or the scrip alternative.

The Jardine Matheson Group
Founded as a trading company in China in 1832, Jardine Matheson is today a diversified business group focused principally on Asia. Its businesses comprise a combination of cash generating activities and long-term property assets.
Jardine Matheson holds interests directly in Jardine Pacific (100%), Jardine Motors (100%) and Jardine Lloyd Thompson (32%), while its 81%-held Group holding company, Jardine Strategic, is interested in Hongkong Land (50%), Dairy Farm (78%), Mandarin Oriental (74%) and Jardine Cycle & Carriage (69%), which in turn has a 50% shareholding in Astra. Jardine Strategic also has a 54% shareholding in Jardine Matheson and a 21% stake in Rothschilds Continuation, the merchant banking house.
These companies are leaders in the fields of engineering and construction, transport services, insurance broking, property investment and development, retailing, restaurants, luxury hotels, motor vehicles and related activities, financial services, heavy equipment, mining and agribusiness.
Incorporated in Bermuda, Jardine Matheson Holdings Limited has its primary share listing in London, with secondary listings in Bermuda and Singapore. Jardine Matheson Limited operates from Hong Kong and provides management services to Group companies.
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For further information, please contact:
Jardine Matheson Limited
James Riley	(852) 2843 8229
GolinHarris
Kennes Young	(852) 2501 7987
Weber Shandwick
Terry Garrett / John Moriarty	[phone]
As permitted by the Disclosure and Transparency Rules of the Financial Services Authority of the United Kingdom, the Company will not be posting a printed version of the Half-Yearly Results announcement to shareholders. The Half-Yearly Results announcement will remain available on the Company’s website, www.jardines.com, together with other Group announcements.

 

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