Information  X 
Enter a valid email address

Jardine Strategic (88EI)

  Print      Mail a friend

Wednesday 27 February, 2002

Jardine Strategic

Final Results

Jardine Strategic Hldgs Ld
27 February 2002



The following announcement was today issued to the London Stock Exchange.



Jardine Strategic Holdings Limited

2001 Preliminary Announcement of Results



Highlights

*  Underlying earnings per share up 44% to USc22.00*

*  Increased investment in Group company shares

*  The Company and Hongkong Land lengthen debt profile through global bond
   issues

*  Property values in Hong Kong decline

*  Dairy Farm successfully exits from Australia

*  Mandarin Oriental impacted by adverse international travel market





 'The outlook for 2002 remains uncertain in most of the world's major economies,
and it is too early to predict the timing of an upturn. Nevertheless, in 2001
our businesses made good progress in the pursuit of their strategic aims, and
the Company's earnings per share benefited from share purchases and buybacks in
several Group companies. The Company's policy of seeking genuine value for
shareholders while maintaining sound finances should stand it in good stead in
what promises to be another challenging year.'



Henry Keswick, Chairman

27th February 2002



*  The Group's financial statements are prepared under International Accounting
Standards ('IAS') which, following recent changes, no longer permit leasehold
interests in land to be carried at valuation.  This treatment does not reflect
the generally accepted accounting practice in the territories in which the Group
has significant leasehold interests, nor how management measures the performance
of the Group.  Accordingly, the Group has presented supplementary financial
information prepared in accordance with IAS as modified by the revaluation of
leasehold properties in addition to the IAS financial statements. The figures
included in the highlights above, and the Chairman's Statement and Operating
Review are based on this supplementary financial information unless otherwise
stated.





The final dividend of USc9.90 per share will be payable on 16th May 2002,
subject to approval at the Annual General Meeting to be held on 9th May 2002, to
shareholders on the register of members at the close of business on 15th March
2002.  The ex-dividend date will be on 13th March 2002, and the share registers
will be closed from 18th to 22nd March 2002, inclusive.



Jardine Strategic Holdings Limited



Preliminary Announcement of Results
For The Year Ended 31st December 2001


Results

The Group's operating companies faced a steadily deteriorating global economic
environment in 2001, made significantly worse by the terrorist attack on the
United States in September. Asian economies reacted with disappointing growth
or, in some cases, recession, and only towards the end of the year were there
indications of a bottoming out.   In the circumstances, Jardine Strategic did
well to increase underlying earnings per share by 44% to USc22.00, reflecting
the benefits of larger stakes in a number of Group companies. Underlying profit
rose to US$146 million, compared to US$128 million in 2000.



The Group's financial statements are prepared under International Accounting
Standards, which now require the revaluation of investment properties to be
taken through the profit and loss account, rather than directly to reserves.
With the Group's extensive property interests, primarily through Hongkong Land,
this accounting treatment can give rise to significant fluctuations in reported
results.



For the year under review, negative movements in property valuations have
produced a reported net loss of US$181 million, or USc27.21 per share. This
compares with a net profit of US$1,233 million, or USc147.40 per share, in 2000,
which benefited from the exceptional profit on the sale of Robert Fleming and
positive movements in property valuations.



Net asset value per share, based on the market price of the Company's holdings,
decreased by 4% to US$4.88 at the year end.



The Board is recommending a final dividend of USc9.90 per share, which, together
with the interim dividend of USc4.60 per share, gives an unchanged dividend for
the full year of  USc14.50 per share.



Corporate Events

For some years a proportion of the Group's available cash flow has been invested
in increasing shareholdings in affiliates where this is considered the optimum
use of resources and where such action is expected to improve earnings or net
assets per share. This policy was successfully maintained in 2001, and further
purchases of shares in Group companies were made. Jardine Matheson purchased
2.3% of its own shares, increasing Jardine Strategic's attributable interest to
51%, while in turn Jardine Matheson's interest in the Company rose to 75%.  The
Company's other interests have also been increased, and it now holds 41% of
Hongkong Land, 62% of Dairy Farm, 66% of Mandarin Oriental and 29% of Cycle &
Carriage.



Group companies took advantage of the decline in US dollar interest rates to
enhance their debt profile and diversify their sources of debt financing. Two
global ten-year bonds were issued during the year on excellent terms - US$600
million by Hongkong Land and US$300 million by the Company.  A significant
number of bank facilities were also renewed across the Group on improved terms.
The Company's portfolio of first class businesses with strong cash flows has
proven its worth not only in assuring stability of earnings but also in securing
this favourable access to financial markets.



The proceeds from disposals in 2001 have moved Dairy Farm's balance sheet into a
net cash position. Dairy Farm is offering to repurchase by tender up to 10% of
its issued share capital.



Business Developments

Hongkong Land performed well in soft rental markets in 2001, though its earnings
were affected by increased financing costs incurred in share repurchases, while
asset values fell in line with market trends. Nevertheless, its contribution to
Jardine Strategic's results rose due to an increase in the Company's percentage
holding. Hongkong Land's new development in Central Hong Kong, Chater House, is
nearing completion and it has been able to attract prestige anchor tenants for
both the office and the retail portions. In Singapore, building on the success
of its Raffles Link development, Hongkong Land has joined a consortium with the
Cheung Kong and Keppel groups to develop a new business and commercial complex.
The company has also partnered with Mainland Chinese interests to build a luxury
residential complex in Beijing.



Among Jardine Matheson's directly held subsidiaries and affiliates, Jardine
Lloyd Thompson had another excellent year as it integrated recent acquisitions
and offered its customers sophisticated risk management services in an insurance
market that was already hardening before the events of 11th September. Jardine
Motors Group saw a return to profit in the United Kingdom and sold its French
subsidiary in early 2002. The company's distributorship of Mercedes-Benz
vehicles in Hong Kong will revert mid-year to DaimlerChrysler, and while it will
retain an exclusive dealership there will be an impact on results. Looking to
the future, it is building its network of service centres in Southern China to
form the basis for a motor dealership operation once regulations permit. Jardine
Pacific released value through the sale of its interests in Jardine Securicor
and Colliers Jardine, in the latter case retaining the Hong Kong property
management division which offers scope for expansion. Several of Jardine
Pacific's companies, however, suffered from the weak regional economic
conditions.



Dairy Farm successfully resolved the problems with its Australian operation by
way of a complex phased disposal. It has achieved some improvement in the
competitive Hong Kong market and most of its other businesses performed well.
The group is now increasing its investment in Southeast Asia where it is
expanding its Giant hypermarket format in Malaysia, Singapore and Indonesia. It
also plans to increase the number of its successful 7-Eleven outlets in Southern
China from 72 to 350 by 2005.



Mandarin Oriental encountered unusually depressed markets in the wake of the
terrorist attack. These conditions have not, however, halted the company's
global expansion programme and its goal of achieving over 10,000 luxury rooms
under management. In addition to its current project in New York, which will
come on stream in 2003, the group is to manage a new hotel in central Tokyo on
its completion in 2006, and has recently announced a new hotel in Washington,
which is targeted to open in 2004.



Cycle & Carriage had a difficult year in its traditional motor and property
businesses, offset by better performances from Astra, one of Indonesia's largest
conglomerates with a wide exposure to opportunities in Asia's third most
populous country. Despite the need for a provision resulting from the decline in
the Indonesian Rupiah, Astra produced a good trading performance in 2001 and it
should become a significant contributor to Cycle & Carriage once its foreign
currency debt problems are resolved.



Prospects

In conclusion, the Chairman, Henry Keswick said, 'The outlook for 2002 remains
uncertain in most of the world's major economies, and it is too early to predict
the timing of an upturn. Nevertheless, in 2001 the Group's businesses made good
progress in the pursuit of their strategic aims, and the Company's earnings per
share benefited from share purchases and buybacks in several Group companies.
The Company's policy of seeking genuine value for shareholders while maintaining
sound finances should stand it in good stead in what promises to be another
challenging year.'



Operating Review



Jardine Matheson

The year saw a steadily worsening global economic environment, and the Asian
economies within which Jardine Matheson operates produced disappointing growth
or even recession.   Against this background it was a real achievement that the
group was able to increase earnings per share by 50% to USc47.97. Underlying
profit, after higher interest charges incurred in implementing a substantial
share repurchase programme in 2000, rose by 5%.



Economic conditions are expected to remain challenging; nevertheless, Jardine
Matheson has robust businesses that are taking the initiative in their chosen
areas of growth and can look beyond the current economic difficulties with
confidence.



*  Jardine Pacific faced weak consumer markets and lower levels of trading
activity in the Asia-Pacific region, which inevitably impacted on performance.
Jardine Pacific produced an underlying profit of US$77 million, down 17%. The
return on average shareholders' funds in 2001, excluding non-recurring items,
was 14% compared with 16% in the prior year.



Within Jardine Pacific's businesses, Gammon Construction saw its profits decline
by 15%, but its order book remained at over US$900 million. Jardine Engineering
Corporation had a good year, and Jardine Schindler increased its profit
contribution by 37%. The 9% fall in cargo through-put at Hong Kong's Chek Lap
Kok airport impacted the profitability of HACTL, but it was offset by lower
interest rates and operational efficiencies. Jardine OneSolution's performance
was adversely affected by the downturn in the global economy, and an impairment
charge of US$21 million was made in respect of goodwill relating to prior
acquisitions. IKEA's sales grew by 7% in Hong Kong, but profitability fell
slightly.



Earnings were also negatively affected by losses in two businesses: Colliers
Jardine, which was sold at the end of the year, with Jardine Pacific retaining
its profitable Hong Kong property management business; and Jardine Logistics,
the management of which was restructured. The group's interests in Jardine
Securicor were sold in December for US$43 million, realising a profit of US$24
million, as further steps were taken by Jardine Pacific to refine its portfolio
and release value created.



*  Jardine Motors Group achieved an underlying profit of US$51 million, the
increase of 100% mainly due to the return to profitability of its UK operations.
After non-recurring items a net profit of US$38 million was recorded, compared
to a net loss of US$37 million in 2000. Revenue declined by 2% to US$2.5 billion
following the disposal of loss-making dealerships in the United Kingdom.



In a contracting Hong Kong market Zung Fu saw lower margins on new car sales,
but was able to increase its market share. A positive contribution was also
achieved in Mainland China. There was a reduced contribution from the group's
Indonesian associate, while its Indian joint venture continued to produce losses
and a major restructuring of the business is being undertaken.



Against a background of record volumes in the UK market, the group's new
management team rationalised the dealership portfolio and returned the principal
businesses to profitability. There was a reduced profit contribution from
France, and in a transaction completed in early 2002 the group disposed of its
interest in Cica, the French dealership operation. An improved result was
achieved in the United States.



Jardine Motors Group will continue to refine its business, positioning itself
for changes in trading practices in the United Kingdom that are likely be
required by the European Commission and the implementation of the new
Mercedes-Benz distribution arrangements in Hong Kong in mid-2002.



*  Jardine Lloyd Thompson's turnover increased 22% to £350 million in 2001.
Profit before tax, exceptional items and goodwill amortisation rose 18% to £84
million, based on UK accounting standards. The performance which maintains and
builds upon JLT's growth in recent years, benefited from acquisitions in 2000
and the strength of its traditional business within Risk Solutions, Corporate
Risks and Services.



JLT has reorganised its operational structure into two new business groups; Risk
& Insurance Group and Employee Benefits.  The latter business has grown
substantially, and JLT now has one of the United Kingdom's largest outsourced
pensions administration operations. Risk & Insurance Group revenue from
continuing operations grew by 15% in 2001 to £272 million, reflecting organic
growth and new business demand in the harder market. Employee Benefits revenue
increased by some 79% in 2001 to £74 million, benefiting from the acquisition of
Abbey National Benefit Consultants together with new business growth.



JLT's strong financial position and reputation for professionalism and
innovation will allow the group to maintain sustainable organic growth and to
capitalize on its unique market position in 2002.



Dairy Farm

Dairy Farm made significant progress in 2001 against a backdrop of poor economic
conditions in most of its markets.  A major problem was resolved through the
disposal of its Australian business and sustained developments in areas seen as
profit drivers for the future were initiated.  The group's sales from continuing
activities of US$3,470 million were 7% ahead of 2000, with growth in all
regions.  Each of the group's regional businesses showed an improved
performance, and its underlying profit of US$48 million, compared to US$1
million in the prior year, represented underlying earnings per share of USc2.87.



Dairy Farm undertook a managed sell-down of Franklins in Australia as the most
effective means of realising value from the limited options available. An
assessment of Franklins' assets in 2000 had led to an impairment charge of
US$129 million. During the course of the disposal programme a premium was
achieved on the sale of the assets, yielding a net gain in 2001 of US$38
million.



Dairy Farm's balance sheet moved into a net cash position, due mainly to the
proceeds from disposals, and the company proposes to repurchase up to 10% of its
issued share capital by way of a tender offer.  Such a proposal would still
enable the group to maintain its active investment strategy.



Improved results were achieved in all businesses in North Asia with Mannings and
7-Eleven in Hong Kong and Wellcome Taiwan all increasing profits. Wellcome Hong
Kong also made good progress, although much has still to be done before it
reaches acceptable levels of profitability. The successful 72 store 7-Eleven
network in neighbouring Guangdong is being expanded to 350 stores by 2005.  The
Maxim's joint venture is expanding the Starbucks chain in Hong Kong, and will be
extending it to Southern China.



Dairy Farm's focus in South Asia is on developing its Giant hypermarket format
in Malaysia and Singapore, as well as introducing it into Indonesia and, subject
to government approvals, India.  During the year Dairy Farm was approached to
sell its Woolworths supermarket operation in New Zealand, but after review, the
decision was taken to retain and grow the business.



While the economic outlook is uncertain, Dairy Farm remains strong with sound
retail businesses that are well positioned to succeed.



Hongkong Land

A weakening sentiment prevailed in the office market in Hong Kong in 2001, with
the events in the United States in September accelerating the decline.  The
effect was mitigated in Central by a lack of supply, and occupancy in high
quality buildings remained firm.



Hongkong Land's net rental income was little changed as reversions were largely
neutral, but higher levels of debt following share repurchases completed in
January 2001 led to increased financing charges. Its underlying earnings fell by
7% to US$213 million, while underlying earnings per share reduced by 2% to USc
8.94.



The valuation of the group's investment property portfolio at the end of 2001
produced a deficit of US$600 million. Largely due to this deficit, shareholders'
funds were reduced by 13% to US$6,048 million. The effect on net asset value per
share was, however, mitigated by the group's action in December 2001 when it
bought back a further 6.7% of its share capital at a cost of US$295 million.  As
a consequence the net asset value per share benefited by 3% and restricted the
overall fall in the year to 7%.



The group took advantage of fine interest rates to enhance its debt profile with
a US$600 million global bond issue.  Its strong cash flow has proven its worth
not only in assuring stability of earnings in challenging times but also in
securing favourable access to financial markets.



Hongkong Land's core portfolio of prime assets will be strengthened by the
completion in 2002 of Chater House at the heart of Hong Kong's Central district.
The group is continuing to make strategic investments, focusing on high quality
assets in the best locations.  These include new developments, such as One
Marina Boulevard in Singapore and a residential site at Central Park in Beijing,
and refurbishments, of which a planned upgrade of the Alexandra House retail
podium in Hong Kong is the latest example.



The outlook for Hongkong Land's core market is closely tied to the timing and
strength of global economic recovery, especially in the United States.  The
current weakness in the Hong Kong property sector has, however, deterred
investment in new supply so that when demand recovers Hongkong Land should see a
positive response in values and rentals in its prime locations.



Mandarin Oriental

Mandarin Oriental faced significant challenges in 2001 when, in an already
weakening trading environment, the events of 11th September prompted a dramatic
fall in both leisure and corporate travel.  The effect on Mandarin Oriental was
particularly severe as the latter part of the year is traditionally the
strongest for many of its hotels.  The company's consolidated profit before
interest and tax for 2001 was US$41 million, a decrease of US$12 million from
2000.  The decline, together with higher interest charges, resulted in a net
profit of US$4 million, 76% down on the previous year.  Shareholders' funds at
the close of 2001 were US$890 million, down 9%, primarily due to a decline in
value of the group's Hong Kong hotel properties.



Despite the poor trading environment, Mandarin Oriental remains committed to its
long-term strategy of being one of the world's top luxury hotel groups with a
target of 10,000 rooms under management.  To achieve its goal the group is
undertaking a programme of selective expansion in international destinations. In
the last three years its portfolio has been increased from 12 to 18 properties,
with 6,600 rooms, and three additional hotels under development.  In New York
the construction is progressing of the AOL Time Warner Center at the southwest
corner of Central Park, which in 2003 will house the 251-room Mandarin Oriental,
New York. The group has announced the development of a 400-room deluxe hotel in
Washington D.C. to open in 2004, while, in Asia, Mandarin Oriental is to manage
a new 171-room luxury hotel in Tokyo under a long-term lease upon its completion
in 2006.



The quality of service upon which Mandarin Oriental's reputation is built was
again recognised by a record number of international awards, both in individual
hotels and for the group. 2002 will, however, be another challenging year with
little to suggest a sustained turnaround in corporate or leisure travel in the
near future, and initiatives will continue to be pursued to enable the group to
manage effectively through the downturn.



Cycle & Carriage

Cycle & Carriage's profit excluding exceptional items, under Singapore GAAP,
decreased by 4% to S$166 million due to a significant decline from its
traditional motor business, particularly in Singapore, which was partly offset
by a substantial increase in contribution from its associate, Astra, on an
equity accounting basis.  The net profit for the year was S$120 million, an
increase of 20% over 2000.



Earnings from motor operations fell by 45% to S$65 million, with all major
markets experiencing much weaker consumer demand in the second half of the year
as economies slowed.  In Singapore, this position was compounded by the loss of
the Mercedes-Benz distributorship from the beginning of the year.



The contribution from property was S$14 million excluding exceptional items, a
decline of 15% due to the limited number of projects under development.  MCL
Land, in which Cycle & Carriage holds a 60% interest, recorded an operating
profit of S$15 million, but made an additional provision of S$31 million in
respect of foreseeable losses on its development properties.



Astra, in which Cycle & Carriage has recently increased its stake to 32%,
achieved an improved performance due to good consumer demand, particularly for
motorcycles, and lower interest rates on its considerable debt. It contributed
S$67 million to Cycle & Carriage's results after exchange losses and an
investment writedown - an improvement over the S$29 million loss in the previous
year. Improved cash flows and proceeds from disposals funded loan prepayments,
but Astra's exposure to debt, particularly foreign currency debt, remains
significant.



Unlike in 2001, Cycle & Carriage's Singapore motor operations will not benefit
from the importer margin on stocks carried over at the start of the year or the
writeback of provisions, and revenues are likely to decline further in 2002. The
motor operations elsewhere, however, are expected to produce reasonable
performances despite the prevailing unsatisfactory market conditions.  MCL Land
will earn development profits from its recent property launches, but the sector
is not expected to show any significant improvement overall.  In Indonesia,
Astra should maintain its trading performance if consumer demand remains steady,
but its level of contribution to Cycle & Carriage will be dependent upon
interest rates and the value of the Rupiah.



Other Interests

Tata Industries is an investment vehicle of the Tata Group for new ventures in
India. Tata Industries, in which the Company has a 20% stake, is involved
principally in the areas of telecommunications, property, financial services and
auto-components.



Edaran Otomobil Nasional, in which the Company holds a 19% interest, continued
to perform well as the demand for the Proton car remained quite firm in 2001. Of
its financial services interests, EON Bank is undergoing a restructuring which
should result in a public listing.



--------------------------------------------------------------------------------
Jardine Strategic Holdings

Consolidated Profit and Loss Account
for the year ended 31st December 2001

--------------------------------------------------------------------------------

                                                                                     Prepared in accordance with
Prepared in accordance                                                            IAS as modified by revaluation
with IAS                                                                  of leasehold properties (refer note 1)


2000            2001                                                                      2001              2000
US$m            US$m        Note                                                          US$m              US$m

----------      ----------                                                         -----------        ----------
5,960           5,152       2      Revenue                                               5,152             5,960
(4,366)         (3,731)            Cost of sales                                       (3,731)           (4,366)
----------      ----------                                                          ----------        ----------
1,594           1,421              Gross profit                                          1,421             1,594
32              68                 Other operating income                                   68                25
(1,282)         (1,105)            Selling and distribution costs                      (1,105)           (1,281)
(313)           (274)              Administration expenses                               (274)             (313)
(21)            (54)               Other operating expenses                               (53)              (36)
(129)           -                  Impairment of assets in Dairy Farm                        -             (129)
                                   Net gain on disposal of Franklins' assets in
-               38                  Dairy Farm                                              38                 -
217             -                  Profit on sale of Robert Fleming                          -               217
----------      ----------                                                          ----------        ----------

98              94          3      Operating profit                                         95                77
(77)            (100)              Net financing charges                                 (100)              (77)


                                   Share of operating profit less net financing
281             204                charges of associates and joint ventures                237               242
-               (88)        4      Impairment of assets in Cycle & Carriage               (88)                 -
                                   Fair value (losses)/gains on investment
-               -                  properties in Hongkong Land                           (246)               749
                                   Profit on sale of Robert Fleming in
255             -                  Jardine Matheson                                          -               255


                                   Share of results of associates and joint
536             116                ventures                                               (97)             1,246
----------      ----------                                                          ----------        ----------

557             110                Profit/(loss) before tax                              (102)             1,246
(68)            (74)        6      Tax                                                    (75)              (68)
----------      ----------                                                          ----------        ----------

489             36                 Profit/(loss) after tax                               (177)             1,178
48              (4)                Outside interests                                       (4)                55
 ----------     ----------                                                          ----------        ----------

537             32          7      Net profit/(loss)                                     (181)             1,233
----------      ----------                                                          ----------        ----------

----------      ----------                                                          ----------        ----------
USc             USc                                                                        USc               USc
----------      ----------                                                          ----------        ----------
64.17           4.80        8      Earnings/(loss) per share                           (27.21)            147.40
13.75           19.77       8      Underlying earnings per share                         22.00             15.28
----------      ----------                                                          ----------        ----------




--------------------------------------------------------------------------------
Jardine Strategic Holdings

Consolidated Balance Sheet
At 31st December 2001

--------------------------------------------------------------------------------
                                                                                    Prepared in accordance with
Prepared in accordance                                                           IAS as modified by revaluation
with IAS                                                                 of leasehold properties (refer note 1)


2000              2001                                                                       2001            2000
US$m              US$m        Note                                                           US$m            US$m

-----------       ----------         Net operating assets                              ----------      ----------
83                72                 Goodwill                                                  72              83
1,254             1,041              Tangible assets                                        1,692           1,966
348               362                Leasehold land payments                                    -               -
2,010             1,910              Associates and joint ventures                          3,305           3,629
485               499                Other investments                                        499             485
14                10                 Deferred tax assets                                       10              14
41                42                 Pension assets                                            42              41
-                 2                  Other non-current assets                                   2               -
----------        ----------                                                           ----------      ----------
4,235             3,938              Non-current assets                                     5,622           6,218

471               282                Stocks                                                   282             471
247               174                Debtors and prepayments                                  174             247
737               595                Bank balances and other liquid funds                     595             737
----------        ----------                                                           ----------      ----------
1,455             1,051              Current assets                                         1,051           1,455
----------        ----------                                                           ----------      ----------
(996)             (807)              Creditors and accruals                                 (807)           (996)
(91)              (261)              Borrowings                                             (261)            (91)
(14)              (17)               Current tax liabilities                                 (17)            (14)
-----------       ----------                                                          -----------      ----------

(1,101)           (1,085)            Current liabilities                                  (1,085)         (1,101)
----------        ----------                                                          -----------      ----------


354               (34)               Net current (liabilities)/assets                        (34)             354
(1,945)           (1,277)     9      Long-term borrowings                                 (1,277)         (1,945)
(42)              (31)               Deferred tax liabilities                                (34)            (44)
(2)               (2)                Pension liabilities                                      (2)             (2)
-                 (5)                Other non-current liabilities                            (5)               -
----------        ----------                                                           ----------      ----------
2,600             2,589                                                                     4,270           4,581
----------        ----------                                                           ----------      ----------
                                     Capital employed
53                53                 Share capital                                             53              53
1,274             1,264              Share premium                                          1,264           1,274
1,639             1,614              Revenue and other reserves                             3,146           3,432
(795)             (824)              Own shares held                                        (824)           (795)
----------        ----------                                                           ----------      ----------

2,171             2,107              Shareholders' funds                                    3,639           3,964
429               482                Outside interests                                        631             617
----------                                                                             ----------      ----------

2,600             2,589                                                                     4,270           4,581
----------        ----------                                                           ----------      ----------



------------------------------------------------------------------------------------------------------------------------
Jardine Strategic Holdings

Consolidated Statement of Changes in Shareholders' Funds
for the year ended 31st December 2001

------------------------------------------------------------------------------------------------------------------------
                                                                                    Prepared in accordance with
Prepared in accordance                                                           IAS as modified by revaluation
with IAS                                                                 of leasehold properties (refer note 1)


2000            2001                                                                      2001               2000
US$m            US$m        Note                                                          US$m               US$m

----------      ----------                                                          ----------         ----------
                                   At 1st January
3,376           3,964              - as previously reported                              3,964              3,376
                                   - effect of adopting IAS 40 and
(1,052)         (1,793)            consequential changes                                     -                  -
----------      ----------                                                          ----------         ----------

2,324           2,171                                                                    3,964              3,376
-               206                - effect of adopting IAS 39                             206                  -
----------      ----------                                                          ----------         ----------

2,324           2,377              - as restated                                         4,170              3,376


                                   Revaluation of properties
10              (5)                - net revaluation (deficit)/surplus                    (52)                 60
(1)             1                  - deferred tax                                            1                (1)
                                   Revaluation of other investments
-               (126)              - fair value losses                                   (126)                  -
                                   - transfer to consolidated profit and loss
-               (13)               account on disposal                                    (13)                  -
                                   Net exchange translation differences
(66)            (42)               - amount arising in year                               (43)               (71)
                                   - transfer to consolidated profit and loss
31              21                 account on disposal of businesses                        21                 31
                                   Cash flow hedges
-               (12)               - fair value losses                                    (12)                  -
                                   - transfer to consolidated profit and loss
-               9                  account                                                   9                  -

                                   Net (losses)/gains not recognised in
(26)            (167)              consolidated profit and loss account                  (215)                 19
537             32                 Net profit/(loss)                                     (181)              1,233
(125)           (97)        10     Dividends                                              (97)              (125)
(259)           (10)               Repurchase of shares                                   (10)              (259)
1               1                  Change in attributable interests                          1                  1
(281)           (29)               Increase in own shares held                            (29)              (281)
----------      ----------                                                          ----------        -----------
2,171           2,107              At 31st December                                      3,639              3,964
----------      ----------                                                          ----------         ----------





------------------------------------------------------------------------------------------------------------------------
Jardine Strategic Holdings

Consolidated Cash Flow Statement
for the year ended 31st December 2001

------------------------------------------------------------------------------------------------------------------------
                                                                                    Prepared in accordance with
Prepared in accordance                                                           IAS as modified by revaluation
with IAS                                                                 of leasehold properties (refer note 1)


2000            2001                                                                       2001              2000
US$m            US$m        Note                                                           US$m              US$m

                                   Operating activities

98              94                 Operating profit                                          94                77
185             147                Depreciation and amortisation                            147               183
(96)            (44)               Other non-cash items                                    (44)              (73)
62              20                 Decrease in working capital                               20                62
38              24                 Interest received                                         24                38
(108)           (121)              Interest and other financing charges paid              (121)             (108)
(20)            (18)               Tax paid                                                (18)              (20)
----------      ----------                                                           ----------        ----------
159             102                                                                         102               159
                                   Dividends from associates and joint
125             196                ventures                                                 196               125
284             298                Cash flows from operating activities                     298               284

                                   Investing activities

(465)           (54)        12(a)  Purchase of subsidiary undertakings                     (54)             (465)
(72)            (89)        12(b)  Purchase of associates and joint ventures               (89)              (72)
(13)            (5)                Purchase of other investments                            (5)              (13)
(235)           (142)              Purchase of tangible assets                            (142)             (235)
-               54          12(c)  Sale of subsidiary undertakings                           54                 -
109             4           12(d)  Sale of associates and joint ventures                      4               109
134             189         12(e)  Sale of other investments                                189               134
8               28                 Sale of tangible assets                                   28                 8
-               217                Disposal of Franklins' assets in Dairy Farm              217                 -

(534)           202                Cash flows from investing activities                     202             (534)

                                   Financing activities

(259)           (10)               Repurchase of shares                                    (10)             (259)
                                   Capital contribution from outside
19              3                  shareholders                                               3                19
1,305           915                Drawdown of borrowings                                   915             1,305
(600)           (1,380)            Repayment of borrowings                              (1,380)             (600)
(167)           (155)              Dividends paid by the Company                          (155)             (167)
(37)            (5)                Dividends paid to outside shareholders                   (5)              (37)

261             (632)              Cash flows from financing activities                   (632)               261
(6)             (6)                Effect of exchange rate changes                          (6)               (6)
----------      ----------                                                           ----------        ----------
                                   Net (decrease)/increase in cash and cash
5               (138)              equivalent                                             (138)                 5
703             708                Cash and cash equivalents at 1st January                 708               703
----------      ----------                                                           ----------        ----------
                                   Cash and cash equivalents at 31st
708             570                December                                                 570               708
----------      ----------                                                          -----------       -----------



------------------------------------------------------------------------------------------------------------------------
Jardine Strategic Holdings Limited 
Notes 
----------------------------------------------------------------------------------------------------------------------
 
1. Accounting Policies and Basis of Preparation 

The financial information contained in this announcement has been based on the
audited results for the year ended 31st December 2001 which have been prepared
in conformity with International Accounting Standards ('IAS'). The Group has
presented supplementary financial information prepared in accordance with IAS as
modified by the revaluation of leasehold properties.  

Other than described below, there have been no changes to the accounting 
policies described in the 2000 annual financial statements. 

(a) Financial information prepared in accordance with IAS 

In 2001, the Group adopted IAS 39 - Financial Instruments: Recognition and 
Measurement, and IAS 40 - Investment Property.  

In accordance with IAS 39, non-current investments and derivatives are 
recognised on the balance sheet at fair value. Unrealised gains and losses 
arising from changes in the fair value of non-current investments are taken to
reserves until realised. This is a change in accounting policy as in previous 
years non-current investments were stated on the balance sheet at cost less
amounts provided and derivatives were recognised to the extent of premiums paid
or received on options. The effect of this change has been to increase 
shareholders' funds at 1st January 2001 by US$206 million. 

In accordance with IAS 40 and as a result of an inability to estimate reliably 
the element of leasehold property values attributable to the building component,
leasehold land and buildings which are investment properties are carried at
depreciated cost. Similarly leasehold interest in land in respect of other 
leasehold properties are carried at amortised cost. This is a change in 
accounting policy as in previous years the Group had reflected the fair value of
leasehold properties in the financial statements and recorded fair value changes
in property revaluation reserves. The effect of this change has been to increase
net profit for the year ended 31st December 2000 by US$2 million, and to 
decrease shareholders' funds at 1st January 2000 and 2001 by US$1,052 million
and US$1,793 million respectively.     

(b) Supplementary financial information prepared in accordance with IAS as
modified by the revaluation of leasehold properties 

As described above, in prior years the Group reflected the fair value of
leasehold properties in its financial statements. Changes in IAS, which came
into effect during 2001, no longer permit the valuation of leasehold interests
in land. As a result, the Group is required to account for leasehold land in
respect of investment and other properties at amortised cost in order to comply
with IAS. This treatment does not reflect the generally accepted accounting
practice in the territories in which the Group has significant leasehold
interests, nor how management measures the performance of the Group.
Accordingly, the Group has presented supplementary financial information on
pages 11 to 14 prepared in accordance with IAS as modified by the revaluation of
leasehold properties. In accordance with IAS 40, changes in fair values of
investment properties which were previously taken directly to property
revaluation reserves are recorded in the consolidated profit and loss account.
The effect of this change has been to increase net profit for the year ended
31st December 2000 by US$698 million. 

                                                                                
                                  
     2.      Revenue                                                                                               
                                                             Prepared in accordance with IAS  
                                                                                                      
                                                                       2001        2000                                 
           
                                                                        US$m      US$m                             
             By business:                                                                                          
             Dairy Farm                                                 4,924     5,733                            
             Mandarin Oriental                                          228       227                              
                                                                        5,152     5,960                            
     3.      Operating Profit                                                                                      

                                                             Prepared in accordance with IAS  
                                                                       2001      2000                                   
                                                                        US$m      US$m                             
             By business:                                                                                          
             Dairy Farm                                                 53        22                               
             Mandarin Oriental                                          29        38                               

                                                                        82        60                               
             Impairment of assets in Dairy Farm                         -         (129)                            
             Discontinuing operation - Franklins in Dairy Farm          (43)      (55)                             
             Net gain on disposal of Franklins' assets in Dairy Farm    38        -                                
             Profit on sale of Robert Fleming                           -         217                              
             Corporate and other interests                              17        5                                

                                                                        94        98                               
                                                                                    
4.    Impairment of Assets in Cycle & Carriage  

In view of the continuing weakness of the Indonesian Rupiah, the Directors
reviewed the carrying value of Cycle & Carriage's investment in Astra
International in April 2001. This review indicated that the future cash flows
from Astra International's business, when discounted at an appropriate risk-
adjusted discount rate which took account of the uncertainties surrounding the
Indonesian economy and its currency, were not sufficient to support the balance
of goodwill arising on the acquisition of this investment. Accordingly, the
balance of the goodwill was written off. The loss attributable to the Group,
after tax and outside interests, amounted to US$88 million. 

                                                                                
                         
5.    Share of Results of Associates and Joint Ventures                                     
                                                            Prepared in accordance with IAS  
                                                                           2001    2000          
                                                                                                                   
                                                                           US$m    US$m                             
            By business:                                                                                            
            Jardine Matheson                                               85      68                               
            Dairy Farm                                                     34      36                               
            Hongkong Land                                                  53      127                              
            Mandarin Oriental                                              9       7                                
            Cycle & Carriage                                               23      24                               
                                                                           204     262                              
            Discontinuing operation - Franklins in Dairy Farm              -       (1)                              
            Discontinued operation - Robert Fleming in Jardine Matheson    -       20                               
            Profit on sale of Robert Fleming in Jardine Matheson           -       255                              
            Impairment of assets in Cycle & Carriage                       (88)    -                                
                                                                           116     536                              
6.    Tax                                                                                                     
                                                                  Prepared in accordance with IAS  
                                                                          2001    2000                                  
                                                                         
                                                                           US$m    US$m                             
            Company and subsidiary undertakings                            18      16                               
            Associates and joint ventures                                  56      52                               
                                                                           74      68                               


Tax on profits has been calculated at rates of taxation prevailing in the
territories in which the Group operates and includes United Kingdom tax of US$4
million (2000: US$3 million). 


7. Net Profit/(Loss) 

                                                                                             
                                                                          Prepared in accordance with             
                Prepared in accordance                                 IAS as modified by revaluation          
                with IAS                                        of leasehold properties (refer note 1)  
                                                                                                        
                2000          2001                                           2001           2000        
                US$m          US$m                                           US$m           US$m        
                ----------    ----------                                     ----------     ----------  
                                            By business:                                                
                52            44            Jardine Matheson                 45             51          
                2             28            Dairy Farm                       28             2           
                73            72            Hongkong Land                    85             84          
                7             5             Mandarin Oriental                5              10          
                10            20            Cycle & Carriage                 20             10          
                (29)          (37)          Corporate and other interests    (37)           (29)        
                ----------    ---------                                      ----------     ----------  
                115           132           Underlying net profit            146            128         
                422           (100)         Non-recurring items              (327)          1,105       
                ----------    ----------                                     -----------    ----------  
                537           32            Net profit/(loss)                (181)          1,233       
                ----------    ----------                                     ----------     ----------  


8. Earnings Per Share 

Basic earnings per share are calculated on net profit of US$32 million (2000:
US$537 million) and on the weighted average number of 665 million (2000: 837
million) shares in issue during the year. The weighted average number excludes
the Company's share of the shares held by an associate. 


Additional earnings per share reflecting the revaluation of leasehold properties
are calculated on a net loss of US$181 million (2000: net profit of US$1,233
million) as shown in the supplementary financial information. 

                                                                               
8.    Earnings Per Share (continued)  

Additional earnings per share are also calculated based on underlying earnings. 
The difference between underlying net profit and net profit is reconciled as 
follows: 
 

                                                                                             
                                                                           Prepared in accordance with             
            Prepared in accordance                                      IAS as modified by revaluation          
            with IAS                                              of leasehold properties (refer note 1)  
                                                                                                           
            2000          2001                                                  2001          2000         
            US$m          US$m                                                  US$m          US$m         
            ----------    ----------                                            ----------    -----------  
            115           132           Underlying net profit                   146           128          
                                        Discontinuing operations                                           
            (40)          (32)          - net loss of Franklins                 (32)          (40)         
                                        - net gain on disposal of Franklins'                               
            -             26            assets                                  26            -            
            14            -             - net profit of Robert Fleming          -             14           
            465           -             - profit on sale of Robert Fleming      -             465          
            439           (6)                                                   (6)           439          
                                        Sale and closure of businesses                                     
            22            -             - Chubb China                           -             22           
            17            14            - other                                 14            17           
            39            14                                                    14            39           
                                        Asset impairment                                                   
            (16)          (5)           - Jardine Motors Group                  (4)           (16)         
            (74)          (8)           - Dairy Farm                            (8)           (74)         
            40            (30)          - Hongkong Land                         (12)          (8)          
            -             (88)          - Astra International                   (88)          -            
            (19)          (28)          - other                                 (28)          (19)         
            (69)          (159)                                                 (140)         (117)        
            14            -             Sale and revaluation of properties      -             -            
                                        Fair value (losses)/gains on                                       
                                        investment properties                                              
            -             -             - Hongkong Land                         (246)         749          
            (2)           (5)           - other                                 (5)           (6)          
            (2)           (5)                                                   (251)         743          
                                        Fair value gain on options                                         
                                        Embedded in Jardine                                                
                                        Matheson Guaranteed                                                
            -             26            Bonds                                   26            -            
            -             29            Sale of investments                     29            -            
            1             1             Other non-recurring items               1             1            
            ----------    ----------                                            ----------    ----------   
            537           32            Net profit/(loss)                       (181)         1,233        
            ----------    ----------                                            ----------    ----------   
                                                                                           
9.    Long-Term Borrowings                                         Prepared in accordance with IAS  
                                                                                                     
                                                                          2001          2000         
                                                                          US$m          US$m         
                                                                          ----------    ----------   
                   Dairy Farm                                             420           820          
                   Mandarin Oriental                                      451           439          
                   Corporate                                              725           835          
                                                                          ----------    -----------  
                                                                          1,596         2,094        
                   Less: Mandarin Oriental's convertible bonds held by                               
                   the Company                                            (58)          (58)         
                   Amount included in current liabilities                 (261)         (91)         
                                                                          ----------    ----------   
                                                                          1,277         1,945        
                                                                          ----------    ----------   
                                                                                       
10.  Dividends                                                                    Prepared in accordance with IAS  
                                                                                                                      
                                                                                            2001          2000        
                                                                                            US$m          US$m        
  Final dividend in respect of 2000 of USc9.90                                                                        
  (1999: USc9.90) per share                                                                 106           114         
  Interim dividend in respect of 2001 of USc4.60                                                                      
  (2000: USc4.60) per share                                                                 49            53          
                                                                                            ----------    ----------  
                                                                                            155           167         
                                              Less Company's share of dividends paid on                               
                                              the shares                                                              
                                              held by an associate                          (58)          (42)        
                                                                                            ----------    ----------  
                                                                                            97            125         
                                                                                            ----------    ----------  

A final dividend in respect of 2001 of USc9.90 (2000: USc9.90) per share amounting to a total of US$105 million
(2000: US$106 million) is proposed by the Board. The dividend proposed will not be accounted for until it has been
approved at the Annual General Meeting. The net amount after deducting the Company's share of the dividends payable
on the shares held by an associate of US$40 million (2000: US$39 million) will be accounted for as an appropriation
of revenue reserves in the year ending 31st December 2002. 

                                                                                                  
11.    Corporate Cash Flow and Net Debt                                     
                                                                 Prepared in accordance with IAS  
                                                                                                  
                                                                        2001          2000        
                                                                        US$m          US$m        
                                                                        ----------    ----------  
                      Dividends receivable                                                        
                      Subsidiary undertakings                           7             46          
                      Associates                                        168           162         
                      Other holdings                                    12            18          
                                                                        187           226         
                      Less: taken in scrip                              (5)           (75)        
                                                                        ----------    ----------  
                                                                        182           151         
                      Other operating cash flows                        (47)          (35)        
                                                                        ----------    ----------  
                      Cash flows from operating activities              135           116         
                      Investing activities                                                        
                      Purchase of subsidiary undertakings               (41)          (425)       
                      Purchase of associates and other investments      (62)          (55)        
                      Sale of associates and other investments          189           223         
                      Cash flows from investing activities              86            (257)       
                      Financing activities                                                        
                      Repurchase of shares                              (10)          (259)       
                      Capital contribution from outside shareholders    -             2           
                      Dividends paid by the Company                     (155)         (167)       
                      Cash flows from financing activities              (165)         (424)       
                      Effect of exchange rate changes                   -             1           
                                                                        ----------    ----------  
                      Net decrease/(increase) in net debt               56            (564)       
                      Net debt at 1st January                           (776)         (212)       
                                                                        ----------    ----------  
                      Net debt at 31st December                         (720)         (776)       
                                                                        ----------    ----------  
                      Represented by:                                                             
                      Bank balances and other liquid funds              5             59          
                      6.375% Guaranteed Bonds due 2011                  (295)         -           
                      Other long-term borrowings                        (430)         (835)       
                                                                        ----------    ----------  
                                                                        (720)         (776)       
                                                                        ----------    ----------  

Corporate cash flow and net debt comprises the cash flows and net cash or debt
of the Company and of its investment holding and financing subsidiary 
undertakings. 

                                                                                      
12.     Notes to Consolidated Cash Flow Statement   

(a)     Purchase of subsidiary undertakings in 2001 included the Company's 
        increased interests in Dairy Farm of US$24 million (2000: US$27 million)
        and Mandarin Oriental of US$17 million (2000: US$27 million). 

        Purchase of subsidiary undertakings in 2000 also included Mandarin 
        Oriental's acquisition of the Rafael Group of US$135 million and the
        restructuring of Connaught Investors of US$254 million. 

(b)     Purchase of associates and joint ventures in 2001 included the Company's
        increased interests in Hongkong Land of US$50 million (2000: US$37 
        million) and Cycle & Carriage of US$11 million (2000: US$6 million). 

                                                                                                                
                                                                          Prepared in accordance with IAS               
               
                                                                                     2001          2000         
        (c)    Sale of subsidiary undertakings                                       US$m          US$m         
                                                                                     ----------    ----------   
               Goodwill                                                              1             -            
               Tangible assets                                                       4             -            
               Pension assets                                                        2             -            
               Current assets                                                        70            -            
               Current liabilities                                                   (40)          -            
                                                                                     ----------    ----------   
               Net assets disposed of                                                37            -            
               Profit on disposal                                                    17            -            
                                                                                     ----------    ----------   
               Net cash inflow                                                       54            -            
                                                                                     ----------    -----------  
Net cash inflow in 2001 related to Dairy Farm's sale of Sims Trading. 



(d) Sale of associates and joint ventures in 2000 included consideration 
    received from Jardine Matheson for the repurchase of its own shares from the
    Group of US$89 million. 

(e) Sale of other investments in 2001 included the Company's interests in 
    Housing Development Finance Corporation of US$70 million and J.P. Morgan
    Chase of US$119 million.  
 
    Sale of other investments in 2000 included net proceeds from the sale of the
    Company's interest in Robert Fleming of US$134 million. 
 
 

                                                                                                               
13.    Market Value Basis Net Assets                                                                 
       Net assets based on the market price of the Company's holdings:                               
                                                                                    2001          2000         
                                                                                    US$m          US$m         
                                                                                    ----------    ----------   
                 Jardine Matheson                                                   775           753          
                 Dairy Farm                                                         669           356          
                 Hongkong Land                                                      1,723         1,970        
                 Mandarin Oriental                                                  291           405          
                 Cycle & Carriage                                                   115           116          
                 Other holdings                                                     345           576          
                 Corporate                                                          (724)         (778)        
                                                                                    ----------    ----------   
                                                                                    3,194         3,398        
                                                                                    US$           US$          
                                                                                    ----------    ----------   
                 Net assets per share                                               4.88          5.07         
                                                                                    ----------    -----------  

The final dividend of USc9.90 per share will be payable on 16th May 2002,
subject to approval at the Annual General Meeting to be held on 9th May 2002, to
shareholders on the register of members at the close of business on 15th March
2002. The ex-dividend date will be on 13th March 2002, and the share registers
will be closed from 18th to 22nd March 2002, 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 by
notifying the United Kingdom transfer agent in writing by 26th April 2002. The
Sterling equivalent of dividends declared in United States Dollars will be
calculated by reference to a rate prevailing on 2nd May 2002. 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.  


- end - 
 
For further information, please contact: 
 

                                                                                       
                   Jardine Matheson Limited           (852) 2843 8216    
                   Norman Lyle 
                                          
                   Matheson & Co.Limited                                 
                   Martin Henderson                   (44) 20 7816 8135 
 
                   Golin/Harris Forrest               (852) 2501 7986    
                   Megan Ross 
                                           
                   Weber Shandwick Square Mile                           
                   Richard Hews/Trish Featherstone    (44) 20 7950 2800  
 
Full text of the Preliminary Announcement of Results and the Preliminary
Financial Statements for the year ended 31st December 2001 can be accessed
through the Internet at 'www.jardines.com'. 

Note to Editors 

Jardine Strategic is a holding company which takes long-term strategic
investments in multinational businesses, particularly those with an Asian focus,
and in other high quality companies with existing or potential links with the
Group. Its principal attributable interests are in Jardine Matheson (51%), Dairy
Farm (62%), Hongkong Land (41%), Mandarin Oriental (66%) and Cycle & Carriage
(29%).

The primary share listing of the parent company, Jardine Strategic
Holdings Limited, is in London, with secondary listings in Singapore and in
Bermuda. The Company is incorporated in Bermuda and its interests are managed
from Hong Kong by Jardine Matheson Limited. 

 




                      This information is provided by RNS
            The company news service from the London Stock Exchange