REG - Jardine StrategicJardine Matheson Hdg - Half Yearly Report <Origin Href="QuoteRef">JARD.SI</Origin> <Origin Href="QuoteRef">JSH.SI</Origin> - Part 4
29/10/2014 09:26
- Part 4: For the preceding part double click ID:nRSA0032Oc
Intangible assets - 66
Tangible assets 1 86
Associates and joint ventures - 10
Current assets 3 82
Non-current assets - 1
Deferred tax liabilities - (7)
Pension liabilities - (5)
Current liabilities (3) (64)
Fair value of identifiable net assets acquired 1 169
Adjustment for non-controlling interests - (68)
Goodwill 2 16
Total consideration 3 117
Fair value of associates and joint ventures (1) -
Cash and cash equivalents of subsidiaries acquired (2) (38)
Net cash outflow - 79
For the subsidiaries acquired during the first half of 2013, the fair value of the identifiable assets and liabilities at
the acquisition dates as included in the comparative figures was provisional. The fair value was finalized between the
second half of 2013 and early 2014. As the difference between the provisional and the finalized fair value was not
material, the comparative figures have not been adjusted.
Net cash outflow for the six months ended 30th June 2013 included US$45 million and US$31 million for Astra's acquisition
of a 100% interest in PT Pelabuhan Penajam Banua Taka, a port business in Indonesia, in January 2013, and a 51% interest in
PT Pakoakuina, a producer of wheel rims for both motor cars and motorcycles, in April 2013, respectively.
None of the goodwill is expected to be deductible for tax purposes.
The Group acquired a subsidiary in January 2014. Revenue and loss after tax since acquisition in respect of the subsidiary
amounted to US$6 million and US$1 million, respectively.
(b) Purchase of associates and joint ventures for the six months ended 30th June 2014 included US$35 million for Hongkong
Land's investments in the Philippines and Indonesia, and US$57 million and US$25 million for Astra's subscription for PT
Bank Permata's rights issue and capital injection into PT Aisin, respectively.
Purchase for the six months ended 30th June 2013 comprised US$18 million for Dairy Farm's acquisition of a 30% interest in
Jutaria Gemiland in Malaysia and US$51 million and US$10 million for Astra's capital injection into PT Isuzu Astra Motor
Indonesia and PT TD Automotive Compressor Indonesia, respectively.
(c) Purchase of other investments for the six months ended 30th June 2014 and 2013 mainly included acquisition of
securities by Astra.
(d) Advance to associates, joint ventures and others for the six months ended 30th June 2014 and 2013 comprised Hongkong
Land's loans to its property joint ventures.
(e) Advance and repayment from associates, joint ventures and others for the six months ended 30th June 2014 and 2013
comprised advance and repayment from Hongkong Land's property joint ventures.
(f) Sale of other investments for the six months ended 30th June 2014 comprised US$119 million for the Company's sale of
Tata Power and US$19 million for Astra's sale of securities.
Sale for the six months ended 30th June 2013 comprised Astra's sale of securities.
(g) Change in interests in subsidiaries
Six months ended 30th June
2014US$m 2013US$m
Increase in attributable interests
- Jardine Cycle & Carriage 33 96
- other - 56
Decrease in attributable interests
- PT Astra Sedaya Finance (187) -
- PT Astra Otoparts - (284)
(154) (132)
Increase in attributable interests in other subsidiaries for the six months ended 30th June 2013 included US$56 million for
Astra's acquisition of an additional 15% interest in PT Asmin Bara Bronang, increasing its controlling interest to 75%.
13. Capital Commitments and Contingent Liabilities
Total capital commitments at 30th June 2014 and 31st December 2013 amounted to US$2,275 million and US$2,065 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 accordance with the Bye-laws of the Company, Jardine Matheson Limited, a wholly-owned subsidiary of Jardine Matheson
Holdings Limited ('Jardine Matheson'), has been appointed General Manager of the Company under a General Manager Agreement.
With effect from 1st January 2008, Jardine Matheson Limited has sub-delegated certain of its responsibilities under the
agreement to a fellow subsidiary. Total fees payable for services provided to the Company for the six months ended 30th
June 2014 amounted to US$68 million (2013: US$71 million).
In the normal course of business the Group undertakes a variety of transactions with Jardine Matheson, and with certain of
its associates and joint ventures.
The most significant of such transactions relate to the purchases 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 for the six months ended 30th June 2014 amounted to US$3,799
million (2013: US$4,361 million). The Group also sells motor vehicles and spare parts to its associates and joint ventures
in Indonesia including PT Astra Honda Motor, PT Astra Daihatsu Motor and PT Tunas Ridean. Total revenue from sales of
motor vehicles and spare parts for the six months ended 30th June 2014 amounted to US$586 million (2013: US$622 million).
PT Bank Permata provides banking services to the Group. The Group's deposits with PT Bank Permata at 30th June 2014
amounted to US$443 million (2013: US$568 million).
During the second quarter of 2014, Astra completed the disposal of a 25% interest in PT Astra Sedaya Finance to PT Bank
Permata for a cash consideration of US$187 million, with the resulting gain of US$89 million recorded directly in equity.
There were no other related party transactions that might be considered to have a material effect on the financial position
or performance of the Group that were entered into or changed during the first six months of the current financial year.
Amounts of outstanding balances with Jardine Matheson, associates and joint ventures are included in debtors and creditors,
as appropriate.
15. Market Value Basis Net Assets
At 30th June2014US$m At 31st December2013US$m
Jardine Matheson 4,336 3,344
Hongkong Land 7,848 6,942
Dairy Farm 11,189 9,971
Mandarin Oriental 1,404 1,231
Jardine Cycle & Carriage 9,275 7,406
Other holdings 1,256 623
35,308 29,517
Jardine Strategic Corporate 739 1,054
36,047 30,571
US$ US$
Net asset value per share (US$) 59.61 50.34
'Market value basis net assets' are calculated based on the market price of the Company's holdings for listed companies,
with the exception of the holding in Jardine Matheson which has been calculated by reference to the market value of
US$22,780 million (2013: US$19,762 million) less the Company's share of the market value of Jardine Matheson's interest in
the Company. For unlisted companies a Directors' valuation has been used.
Net asset value per share is calculated on 'market value basis net assets' of US$36,047 million (2013: US$30,571 million)
and on 605 million (2013: 607 million) shares outstanding at the period end which excludes the Company's share of the
shares held by Jardine Matheson of 516 million (2013: 513 million) shares.
Jardine Strategic Holdings LimitedPrincipal 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 110 of the Company's Annual Report for 2013, 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 Conduct Authority in the United Kingdom.
For and on behalf of the Board
Ben Keswick
Adam Keswick
Directors
1st August 2014
The interim dividend of US¢8.00 per share will be payable on 15th October 2014 to shareholders on the register of members at the close of business on 22nd August 2014,
and will be available in cash with a scrip alternative. The ex-dividend date will be on 20th August 2014, and the share registers will be closed from 25th to 29th August
2014, 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 2014 interim dividend by notifying the United Kingdom transfer agent in
writing by 26th September 2014. The sterling equivalent of dividends declared in United States dollars will be calculated by reference to a rate prevailing on 30th
September 2014. 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.
Jardine Strategic
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 56%, Hongkong Land 50%, Dairy Farm 78%, Mandarin
Oriental 73% and Jardine Cycle & Carriage 74%, which in turn has a 50% interest in Astra. It also has a minority interest
in Zhongsheng Group. Jardine Strategic is 83%-held by Jardine Matheson.
Jardine Strategic Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange as
its primary listing, with secondary listings in Bermuda and Singapore. The Company's interests are managed from Hong Kong
by Jardine Matheson Limited.
- end -
For further information, please contact:
Jardine Matheson Limited
James Riley (852) 2843 8229
GolinHarris
Kennes Young (852) 2501 7987
As permitted by the Disclosure and Transparency Rules of the Financial Conduct Authority in 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.
This information is provided by RNS
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