Company Announcements

2nd March 2023

For immediate release

 

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

 

Jardine Matheson Holdings Limited

2022 Preliminary Announcement of Results

 

Group well-positioned to take advantage of Asia reopening

 

Headlines

·     Underlying profit and underlying EPS grow by 5% and 14%, respectively

·     Strong performance in Southeast Asia, led by Astra

·     Continued pressure on China (including Hong Kong) in the second half

·     Full year dividend of US$2.15, up 8%

 

"Jardines delivered a good performance overall in 2022, with results recovering to pre-pandemic levels seen in 2019.  There were strong results from Southeast Asia, in particular Astra and JC&C, but the performance of our businesses in Hong Kong and on the Chinese mainland continued to be materially impacted by the continuation of pandemic restrictions there, which only began to be relaxed in December.  The Group's resilience through the pandemic, however, together with its diversified portfolio, have established a solid foundation for future growth.  I want to thank our colleagues across the Group for their unwavering commitment to our customers and our businesses during this challenging period.

 

The Group is well-positioned to take advantage of opportunities across Asia, as Southeast Asia continues its return to growth and as Hong Kong and the Chinese mainland recover.  We also remain confident in our long-term strategy, focussed on our core Asia markets."

 

Ben Keswick, Executive Chairman

 

Results summary

 

Year ended 31st December
	2022         US$m	2021         US$m		Change %
Gross revenue including 100% of associates and joint ventures	114,758	109,370		+5
Revenue	37,724	35,862		+5
Underlying profit* before tax	4,930	4,117		+20
Underlying profit* attributable to shareholders	1,584	1,513		+5
Profit attributable to shareholders	354	1,881		-81
Shareholders' funds	28,826	29,781		-3
	US$	US$
Underlying earnings* per share	5.49	4.83		+14
Earnings per share	1.22	6.01		-80
Dividends per share	2.15	2.00		+8
*  The Group uses 'underlying profit' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in note 41 to the financial statements.  Management considers this to be a key measure which provides additional information to enhance understanding of the Group's underlying business performance.

The final dividend of US$1.60 per share will be payable on 10th May 2023, subject to approval at the Annual General Meeting to be held on 4th May 2023, to shareholders on the register of members at the close of business on 17th March 2023 and will be available in cash with a scrip alternative

 

Jardine Matheson Holdings Limited (the 'Company')

2022 Preliminary Announcement of Results

 

Chairman's Statement

2022 in Review

2022 was a further year of challenge for our businesses across the Group, which continued to be impacted by the pandemic.  I want to start by thanking each of the many colleagues who work for Jardines, as well as the Group's partners across our markets, for their unwavering commitment to our customers and our businesses during this challenging period.

The last year has seen much of the world moving to live with COVID, and many of our businesses were able to benefit from the reopening of markets and the economic recovery which resulted.  Hong Kong and the Chinese mainland, however, continued to be significantly impacted by the pandemic and related restrictions, with a relaxation only starting to be seen in these markets at the very end of the year. 

The Group's resilience through the pandemic, however, and its strong performance in 2022, despite challenging conditions in a number of our sectors and markets, together with its diversified portfolio, have established a solid foundation for future growth.  We are optimistic that the reopening of Hong Kong and the Chinese mainland will enable our businesses there to recover quickly and we are confident in the strong future growth opportunities in Southeast Asia, and particularly in Indonesia and Vietnam.  We are focussed on continuing to capitalise on the best long-term opportunities across Asia, while adapting to the changing external environment and evolving expectations of our stakeholders.

Performance

The Group's underlying net profit of US$1,584 million for the year was US$71 million (5%) higher than the prior year.  The increase was primarily driven by strong performances by Astra and our other Southeast Asian businesses held by Jardine Cycle & Carriage ('JC&C').  There was a return to underlying profit by Mandarin Oriental and an improved contribution from the Group's unlisted Jardine Pacific businesses.  Hongkong Land, however, delivered significantly reduced underlying profits in 2022 and the results of DFI Retail Group ('DFI Retail') were also materially lower.  There was a slight decline in the performance of the Group's Motor interests. 

The financial and operational strength of the Group's businesses continues to be supported by our investment strategy and approach to capital allocation.  

The Board is recommending an increased final dividend of US$1.60 per share, which produces a full-year dividend of US$2.15 per share, up 8% from the prior year. 

Significant Developments

The Board regularly reviews our portfolio of businesses and assesses whether actions are necessary to ensure that our activities align with our strategic priorities.  The Group believes it is essential to continue to invest for the long term in business opportunities which will drive future growth for our shareholders.  This approach drove the substantial investment in 2021 in simplifying the Group's parent company structure, by acquiring the 15% of the issued share capital of Jardine Strategic Holdings Limited ('Jardine Strategic') which the Company did not already own.  The final stage in this Group simplification was the approval by shareholders at the Company's AGM on 5th May 2022 of the cancellation of 427 million shares in the Company, as part of a reduction in capital.

During 2022, and into 2023, we have continued to progress the simplification of the Group's portfolio and lay the foundations for the next stage of its growth.  In January 2023, the Group entered into a conditional agreement to sell its 28.2% stake in the Hong Kong-listed Greatview Aseptic Packaging Company and, in March 2023, the Group expects to complete the sale of its Motors business in the United Kingdom.

In September 2022, Mandarin Oriental completed the sale of its Washington D.C. hotel, as it continued to pursue its strategy for driving future growth, primarily through the development of its management business.

The Group also continued to make strategic investments.  In September 2022, Astra continued its focus on providing compelling financial services to its customers by completing the acquisition of a 49.6% stake in Bank Jasa Jakarta, which it jointly controls with WeLab and which it is planned to transform into an innovative digital bank in Indonesia. 

During the year, Astra also purchased a 7.4% stake in Medikaloka Hermina, one of the largest hospital groups in Indonesia, operating as Hermina Hospitals, increasing its focus on healthcare services and adding to its existing investment in Halodoc, an online platform in Indonesia providing access to a range of medical services.

Astra made an important further step in diversifying into other minerals, by entering the nickel mining and processing businesses through an agreement to acquire 90% interests in Stargate Pasific Resources and Stargate Mineral Asia, which is expected to complete in 2023.  It also made progress against its commitment to invest in renewable energy, by acquiring a 31.5% interest in Arkora Hydro, a hydro-based energy power generation business.

In July 2022, JC&C announced a general offer to acquire the remaining shares in Cycle & Carriage Bintang which it did not already own.  It also increased its interest in Refrigeration Electrical Engineering Corporation ('REE') to 33.6% in the period, through on-market purchases. 

In 2022, Hongkong Land acquired two new sites, in Suzhou and Shanghai.  The joint venture to develop a mixed-used commercial site in Suzhou, consisting of a luxury mall and hotel, reflects the group's strategy of developing luxury and premium lifestyle retail properties on the Chinese mainland.  The residential site in Shanghai is located in Xuhui District, adjacent to our large mixed-used project in West Bund. 

In May 2022, DFI Retail launched its yuu-to-me offering, providing customers with an integrated one-stop online shopping experience and home delivery service across leading Hong Kong brands.  Following the success of the rollout of the yuu Rewards loyalty programme in Hong Kong, the group launched yuu Rewards in Singapore in October 2022.  The programme in Singapore benefits from partnerships with a number of leading local brands.

Sustainability

We believe that it is essential that our sustainability approach is good for business, and that real value can be realised by integrating sustainability into the strategy and business models of our Group companies.  Each of our businesses should also consider sustainability issues in all aspects of their decision-making, and we are developing a framework for all our businesses to use to integrate sustainability into the capital allocation decision-making process.

There is a strong level of engagement between our businesses on sustainability issues, and this will enable us to create real scale in what we do.

A significant milestone in the Group's sustainability journey was the publication of our inaugural Sustainability Report at the end of June.  The report reflected extensive work over the previous year to set a range of Group-wide metrics and gather data from our businesses, to enable the Group to measure and report its progress.  We also published Task Force on Climate-Related Financial Disclosures ('TCFD')-aligned disclosures for the first time.  Eight other Group businesses also published sustainability reports last year, three for the first time.

We published a statement in June 2022, clarifying the Group's support for a Just Energy Transition to a low carbon economy in the geographies where we operate.  The statement contains commitments to scale up investments in renewable energy and related innovations, diversify into non-coal mineral mining, and make no investments in new thermal or metallurgical coal mines or new thermal coal-fired power plants.  Astra and JC&C published aligned statements at the same time.

During 2022, good progress was made on climate action.  Our businesses are setting science-based 2030 targets for decarbonisation, and several of them have submitted commitment letters to SBTi.  In 2023, our businesses will be developing decarbonisation pathways towards achieving those targets.  There is also a strong focus on climate risk, with the development of Group-wide transition climate risk scenarios, and our businesses are starting to incorporate physical climate risk into their risk management approach.

Our businesses are exploring opportunities in relation to responsible consumption, especially in the areas of waste and circularity, including ways in which they can collaborate to achieve shared objectives.  A number of initiatives are being progressed already.  The Group is developing its social inclusion strategy, with a particular focus on the areas of education and mental health. 

Governance

Our approach to governance is based on what is most appropriate for the Group's unique shareholding structure, size and its operations in Asia, and we continue to review its effectiveness on an ongoing basis.  In 2022, we made a series of changes to strengthen the boards of our listed subsidiaries, appointing new independent non-executive directors with sector expertise and experience.  The audit committees of each of these boards now have a majority of independent members.  At the Company level, the membership of the audit committee is now solely Independent Non-Executive Directors.  

People

Jeremy Parr retired from the Board on 31st March 2022.  David Hsu retired from his role as Chairman of Jardine Matheson China on 1st August 2022.  He remains on the Board of the Company as a Non-Executive Director.  On behalf of the Company, I would like to thank them both for their contribution to the Board and the wider Group.

Conclusion

The Group delivered a strong set of results in 2022, despite the fact that, for much of the year, the performance of many of our businesses in Hong Kong and on the Chinese mainland was materially impacted by pandemic restrictions in those markets.  This is testament to the value of the Group's diversified portfolio, as well as the resilience which our businesses and our many colleagues across the region have shown in the past year.

The Group is likely to continue to face challenges in the coming year from global economic headwinds, but it is well-positioned to take advantage of opportunities, as our key markets in Southeast Asia and China return to growth following their emergence from the pandemic. 

 

Ben Keswick

Executive Chairman

 

Group Managing Director's Review

Introduction

The pandemic continued to impact many of our businesses for much of 2022, but the Group performed strongly and delivered near-record levels of underlying profit.

The performance of the Group's businesses reflects the immense effort our many colleagues across the Group have made to put customers first and to overcome the extensive professional and personal challenges they have continued to face as a result of the pandemic.  This was especially the case in Hong Kong and on the Chinese mainland, where the impact of the pandemic and related restrictions continued for much longer than in other parts of the world.  I would like to thank each of our colleagues for their unwavering dedication and hard work, often in very difficult circumstances.

We remain focussed on managing the short-term challenges our businesses are likely to face from global economic headwinds.  We are at the same time building businesses and teams that will deliver sustainable strong growth over the medium- to long-term, and over the past year we have continued to simplify the Group's portfolio and set the Group up for its next stage of growth.

Innovation and adaptability have proven to be critical in the face of the rapidly changing business environment, and we have made substantial progress in modernising our core businesses and transforming the way we operate, to reflect that evolving environment.  The pace of change continues to accelerate, however, and we are focussed on driving forward our strategic priorities with urgency in the coming year.  These priorities and how we are progressing them are set out below.

Evolving the Group Portfolio

Evolving the Group's portfolio is a key element of ensuring that our business is sustainable and grows earnings over the long-term.  We are focussed on deploying capital, both at a Group level and within our Group companies, towards strategic higher growth initiatives, while taking a sensible approach to divesting non-strategic and lower-yielding assets.

During the year, we continued to strengthen our position in the more promising markets of Asia and in industries where we can establish market-leading positions, to create long-term value and ensure sustainable growth.  Our diversified presence in China and Southeast Asia, as well as our balanced portfolio across sectors, has helped us perform well even in difficult market conditions.

Our primary focus is on expanding our operations in areas that offer the greatest potential for future growth, such as the Chinese mainland and several ASEAN markets.  We are seeking strong growth opportunities in emerging ASEAN markets like Indonesia and Vietnam, as well as developing our automotive, retail and property development interests in China.

We want to align ourselves with key trends in these markets, such as growing urbanisation and the developing middle class.  We also recognise that there are continuing growth opportunities in our established markets such as Hong Kong and Singapore, which provide a stable foundation and strong cash flow.

Our capital allocation strategy prioritises organic investment in our portfolio to drive long-term growth and returns, while also aiming to increase dividends over time.  We then focus on investing in new business opportunities, as well as carrying out share buybacks in our companies as appropriate.  Our strategy is underpinned by a strong balance sheet.  We are also increasingly focussed on ensuring that the investment opportunities we take align with our sustainability goals, and in this context we are developing a framework, which will be adopted Group-wide, to integrate sustainability into the capital allocation decision-making process. 

The Group's prudent capital allocation approach underpinned the acquisition by the Company in April 2021 of the 15% minority stake in Jardine Strategic that it did not already own.  This resulted in Jardine Matheson increasing its interests in Hongkong Land, DFI Retail, Mandarin Oriental, Jardine Cycle & Carriage and Astra, as well as simplifying the Group's ownership structure and governance framework.  The acquisition was funded in part by debt facilities.

Following the completion of the acquisition, for the remainder of 2021 we prioritised debt reduction ahead of further, material new investments.  In order to achieve this, we made two significant strategic disposals in the second half of 2021: the sale of the Zung Fu China business to our long-term partner in China, Zhongsheng; and the sale and leaseback of the Zung Fu Hong Kong properties.  These transactions enabled the Company to reduce its net debt to US$1.3 billion by the end of 2021.  

During 2022 and, as we enter 2023, we have continued to progress the simplification of the Group's portfolio and lay the foundations for the next stage of its growth.  In January 2023, the Group entered into a conditional agreement to sell its 28.2% stake in the Hong Kong-listed Greatview Aseptic Packaging Company and, in March 2023, the Group expects to complete the sale of its Motors business in the United Kingdom.

The Group also continued to focus on making strategic investments, with Astra acquiring a 49.6% stake in Bank Jasa Jakarta in 2022, continuing its focus on providing compelling financial services to its customers, as well as a 7.4% stake in Medikaloka Hermina, one of the largest hospital groups in Indonesia, increasing its focus on healthcare services and adding to its existing investment in Halodoc, an online platform in Indonesia providing access to a range of medical services.

To support its strategy of diversifying into other minerals and renewable energy, Astra, through United Tractors, is entering the nickel mining and processing businesses through an agreement to acquire a 90% interest in Stargate Pasific Resources and Stargate Mineral Asia for US$272 million, which is expected to complete in 2023.  It has also acquired a 31.5% interest in Arkora Hydro, a hydro-based energy power generation business.

In February 2023, Cycle & Carriage Singapore completed a sale and leaseback arrangement of its properties for around US$230 million.

These examples illustrate the focus of the Group on implementing its capital allocation and portfolio strategy and on seizing opportunities when they arise to optimise our portfolio and prepare the Group for future growth.

Driving Innovation and Operational Excellence

The Group also continues to focus on delivering operational excellence in our existing and new businesses, and the past year has seen strong progress by our businesses in driving greater efficiency and productivity, despite the challenging market environment.  Business improvement initiatives were progressed in the year in many of the Group's businesses, including Gammon, Jardine Restaurant Group, Zung Fu Hong Kong and HACTL, with a positive impact on results.  DFI Retail's multi-year transformation plan continues to deliver real improvements in operating metrics across its banners.  Mandarin Oriental has successfully unified its property management system across hotels, delivering standardisation and enabling efficiency benefits. The increased efficiencies which are being delivered across our businesses are essential to their ability to increase their agility and adaptability and address the challenges they face in order to deliver future growth. 

As well as driving operational excellence, a key strategic priority is a focus on innovation.  Our B2B businesses have continued enthusiastically to embrace digital ways of working to improve operations.  Gammon has been an early embracer of building information modelling and has continued to grow its Virtual Design & Construction ('VDC') teams in Hong Kong and Shenzhen, which use digital prototyping to validate and optimise the design and construction process.  JEC have developed their JEDI AI-powered digital platform, which utilises data-driven insights to provide building energy services in areas such as energy analytics and optimisation, fault detection and diagnostics and chiller optimisation, and deliver better experiences for end-users.  Gammon's Digital G subsidiary provides digital technology to make the building process and management of the built environment safer, more efficient and less labour intensive.

We continue to seek new inorganic growth opportunities which facilitate our wider participation in the digital economy, emerging industries and new geographies.  JEC has acquired the Hong Kong and Macau business of MGI Group Holdings Limited, a leading specialty healthcare engineering solutions provider, as part of JEC's strategic aim of building its skills and capabilities in the healthcare sector.  Astra has continued to invest in digital businesses in Indonesia during the period.  It acquired an interest in Paxel, a technology-based logistics startup, and also increased its investments in Sayurbox, an e-commerce grocery farm-to-table platform and Mapan, a digital community-based social financing platform.

As the Asian consumer appetite for digital continues to increase, our B2C businesses are focussed on embedding digital as a core component of how we anticipate and serve the needs of customers - developing omnichannel experiences, building data capabilities and investing in start-ups to augment our capabilities to react with speed and agility to the changing marketplace and evolving consumer behaviours and connect effectively with our customers.

DFI Retail's yuu coalition loyalty programme continues to exceed expectations and is the leading customer loyalty programme in Hong Kong, with more than four million members.  The group has this year launched yuu Rewards in Singapore, with encouraging performance so far, and its yuu-to-me offering, launched in May 2022, provides customers with an integrated one-stop online shopping experience and home delivery service across leading Hong Kong brands. 

Hongkong Land has developed the digital services it provides to customers in its Hong Kong retail portfolio by introducing a revamped LANDMARK app, which provides shoppers and loyalty members with a more personalised and intuitive user experience, while the group has also enhanced the functionality of its 'By The Bay' mobile app in Singapore with the addition of exclusive retail offerings, health and wellness workshops and a series of community and charitable events. 

Mandarin Oriental launched its new website during the year, redesigned to ensure a mobile-first, personalised user experience whilst improving site performance and reliability.  Since the new website went live in August, 60% of visits have come from mobile devices, a considerable uplift from the previous website, driving more direct digital bookings.

Our Southeast Asian businesses are also adopting innovative approaches to how they run their businesses.  Astra, for example, is using Formula 1 technology in the mining industry to optimise fuel consumption.  It is also using the Internet of Things ('IoT') and control centres to optimise manufacturing.

Our businesses are looking for ways in which they can innovate (through enhancements to existing businesses or new inorganic growth) which align with our sustainability priorities.  Astra's investment through United Tractors in Arkora Hydro demonstrates its determination to take action to deliver on the commitments in its Just Energy Transition Statement published last June, by investing in renewable energy.  This investment builds on Astra's existing presence in the hydroelectric power sector, where it already operates a mini-hydro power plant and is developing another.

Astra is also developing electricity generation facilities using innovative solar photovoltaic ('PV') technology, through its subsidiary PT Energia Prima Nusantara ('EPN'). In 2022, EPN secured commitments to install 16 MWp of rooftop solar PV, of which 4 MWp has been installed in a number of Astra group company facilities. 

Vietnam's installed capacity for wind, solar and hydro power is forecast to double by 2030 and REE, JC&C's associate there, continues to make extensive investments in renewable energy.  REE is Vietnam's largest investor in roof-top solar power and also has interests in wind farms and hydroelectric dams.  As of December 2022, renewable energy sources (hydroelectric, solar and wind) accounted for 72% of REE's energy portfolio.

JC&C's automotive businesses in Southeast Asia are also focussed on innovative sustainable business solutions.  As an example, Cycle & Carriage Singapore ('CCS') is growing its new electric van logistics business in Singapore, offering logistics solutions to retail giants such as IKEA, Guardian and Uniqlo.  CCS also sells and leases the vehicles to large logistics businesses, including UPS and DHL.

 

Enhancing Leadership and Entrepreneurialism

We need to evolve and accelerate to stay ahead of the competition - and we have identified the embedding of an entrepreneurial culture as a key success factor in doing this. Entrepreneurship means being open to experimentation and having the confidence to put ideas forward and, importantly, to promote and defend them.

A key element of building an entrepreneurial culture is attracting, developing and retaining the right leadership talent, and this is a top priority for the Group and its companies.  In the past year, the Group has made a number of significant senior appointments to bolster its leadership and drive future growth.  We see it as essential to appoint the most competent, highly-qualified and experienced senior executives to drive business growth, and have appointed two new Jardine Matheson Limited Directors to lead our business development efforts across China and Southeast Asia.  We have also strengthened the leadership of our core Group functions, by appointing a new Group General Counsel and Group Head of Human Resources.

We have continued to invest in developing our leaders and providing them with opportunities to advance their careers within different businesses across the Group, with a number of executive-level senior management moves taking place during the period.

We are focussed on providing our colleagues with the appropriate training and support to equip them with the skills needed to navigate the challenges and opportunities they face, both in the short- and the long-term.  Our comprehensive Group-wide programme of online learning and academies has seen high levels of participation in the year.

We are also continuing our work to create a diverse and inclusive culture where everyone can succeed.  We are working with our businesses to increase the diversity of the boards and senior management of our Group companies.  A key element of this is the successful nurturing of colleagues at all levels, in order to develop diverse pools of talent from which our future senior leaders can be selected.  We  recognise that there is a great deal more to do in order to build greater diversity at all levels of the Group, but we made good progress last year in implementing our diversity and inclusion ('D&I') strategy to help progress our ambitions across the Group.  We launched a series of initiatives, including a learning campaign on inclusive leadership; a comprehensive review to enhance Human Resources policies; and new processes which support D&I.  We have also developed targets for increasing female representation in our workforce and leadership. 

We also aim to create an owner mindset among our staff and are supporting this by enhancing our incentive structures over time to focus less on current profits and more on value creation over a longer time horizon.  

Progressing Sustainability

In 2022, we continued to drive a more aligned, focussed approach to sustainability across all our Group companies, leveraging and building on the work many of them are already doing in this area to maximise the impact we have in our communities and on the environment.  There is increasingly strong engagement between our businesses on sustainability issues, which will enable us to create real scale in what we do.

We continue to focus on actively sharing the positive actions our diverse businesses are taking in relation to sustainability, by reporting more effectively on Environmental, Social and Governance ('ESG') issues, and in 2022 we published our inaugural Sustainability Report.  The report included data on a range of Group-wide metrics gathered from our businesses.  We also published TCFD-aligned disclosures for the first time in the report.  

We took a key step in progressing our climate action agenda in June 2022 with the publication by the Company, JC&C and Astra of a Just Energy Transition statement, which articulated our commitment to a low carbon economy in the geographies where we operate.  Effective steps are already being taken to implement the key commitments in the statement: we saw investments in the year in renewable energy-focussed businesses in Indonesia and Vietnam and a diversification into non-coal mineral mining with the acquisition of interests in a nickel mining and processing business.

Our focus on climate action also saw our businesses setting science-based 2030 targets for decarbonisation and starting to develop decarbonisation pathways towards achieving those targets. 

Our businesses are exploring opportunities to collaborate in relation to responsible consumption, especially in the areas of waste and circularity, and the Group is developing its social inclusion strategy, with a particular focus on the areas of education and mental health. 

Creating emotional engagement among our colleagues and other stakeholders continues to be a key aspect of implementing an impactful and effective sustainability approach, and this was a focus of our sustainability efforts during the year, as we saw an acceleration in momentum across our businesses in organising volunteering activity, with a significant increase in volunteering hours and number of volunteers.

Summary of Performance

The Group saw improved performances from many of its businesses in 2022, compared to 2021, with particularly strong growth in Southeast Asia, led by Astra.  The results delivered by the Group in 2022 once again demonstrate the continuing value of our diversified portfolio, which has enabled Jardines to produce a resilient performance, despite challenging conditions in a number of our sectors and markets.

The strong performance of the Group's businesses in Southeast Asia in the first half of 2022, together with the challenges faced by our businesses in Hong Kong and on the Chinese mainland throughout the year, led to 55% of the Group's profit for the period coming from Southeast Asia and 39% from China. 

The Group's underlying net profit for the year increased by 5% to US$1,584 million and underlying earnings per share were US$5.49, an increase of 14%.  The Group's underlying earnings per share in 2022 represent an increase of 30% over those of 2019, while its dividends per share of US$2.15 in 2022 represent an increase of 25% over the same period.

The key drivers of the Group's performance were strong performances by Astra and our other Southeast Asian businesses held by JC&C.  Astra reported a 51% increase in underlying earnings, excluding the unrealised net fair value loss on investments in GoTo and Hermina, with improvements across most of its divisions, supported by Indonesia's economic recovery and higher commodity prices.  JC&C's underlying profits increased by 39%, with strong performances by THACO and its Direct Motor Interests. 

Mandarin Oriental saw a return to underlying profitability in the year, with a strong performance from its resort hotels and a good recovery by its owned hotels, although results were impacted by Hong Kong and Tokyo.  There was also an improved contribution from the Group's unlisted Jardine Pacific businesses, driven by Jardine Schindler and JEC, although most of the businesses focussed on Hong Kong were impacted by the continuation of pandemic restrictions there.  

Hongkong Land's full-year underlying profits were 20% lower than the prior year, as a result of a significantly lower profit contribution from the Development Properties business in the second half of the year.   The lower profit contribution was primarily due to a smaller number of planned sales completions and the impact of pandemic-related restrictions on construction activities on the Chinese mainland.  DFI Retail Group saw a decline year-on-year in underlying profit, with the pandemic continuing to impact the financial performance of the group's subsidiaries and associates.  There were, however, encouraging signs of an improvement in performance in the second half. There was a slight decline in the performance of the Group's Motor interests. 

Net non-trading items were negative, versus a positive position last year. The majority of the non-trading losses in 2022 were the Group's share of fair value losses of US$604 million arising from the revaluation of the Group's investment properties portfolio and non-current investments of US$309 million, together with the impairment of investment in associates of US$320 million.  The net non-trading gain in 2021 mainly included the US$791 million gain on disposal of Zung Fu China business and the US$337 million gain on the sale and leaseback of Zung Fu Hong Kong's principal operating properties, partly offset by the Group's share of the unrealised loss of US$681 million in respect of the Group's investment properties portfolio.  After taking account of the net non-trading losses, the Group recorded a net profit attributable to shareholders of US$354 million in 2022.

The Group's balance sheet remains strong with gearing of 13%, up from 11% at the end of 2021. 

The Group's capital investment, including expenditure on properties for sale, was US$5.3 billion in 2022, and capital investment at its associates and joint ventures exceeded US$4.3 billion.  The Group continues to invest for the long-term and ensure that its businesses have the resources to drive future growth.

Individual Business Performance

Jardine Pacific

Jardine Pacific produced an underlying net profit of US$182 million, 4% higher than 2021.  There was a good performance by most of the B2B businesses, while the group's consumer businesses continued to be impacted by continuing pandemic restrictions in Hong Kong.  The business reported a net loss of US$123 million, after net non-trading losses of US$305 million.  

Jardine Pacific businesses received total government subsidies of US$28 million in the current year, compared with US$9 million in 2021.

There was significant focus in the year across the group's businesses in driving operational improvements.  The benefits are now starting to be seen in improved business performance and the group is well set for future growth.

	Group Interest		Group Share of Underlying profit
	%		2022 US$m	2021 US$m
Analysis of Jardine Pacific's contribution:
Jardine Schindler	50		36	32
JEC	50-100		53	49
Gammon	50		39	39
Jardine Restaurants	100		19	27
Transport Services	42-50		23	31
Zung Fu Hong Kong*	100		12	4
Corporate and other interests			-	(7)
			182	175

* Zung Fu Hong Kong was reported as part of the Jardine Pacific group of businesses with effect from October 2021

 

Within Jardine Pacific's B2B businesses, Jardine Schindler's performance was higher than in 2021, with a stable contribution from the Existing Installation business.  JEC delivered good profit growth.  Its Hong Kong businesses continued to report solid performances, although its regional businesses continued to face challenging conditions.  Strong levels of new work were secured, leading to a record order book at year-end.

Gammon's performance was in line with last year due to the timing of projects, and its order book remained strong.

In Transport Services, there was weaker performance in HACTL, mainly caused by lower volumes as export demand softened.  Jardine Aviation reported a higher loss, due to lower flight volumes for much of the year.  Volumes slowly recovered, however, as pandemic restrictions in Hong Kong eased towards the end of the year.

Looking at the group's consumer-facing businesses, Jardine Restaurants delivered overall results which were 29% lower than last year, mainly due to the impact of disruption from pandemic restrictions in Hong Kong, which resulted in a weaker performance in both Pizza Hut and KFC Hong Kong.  Despite a lower contribution caused by increasing operating costs, Pizza Hut Taiwan continued to perform well.  The business continued to benefit from ongoing 'process re-engineering' projects.  

Zung Fu Hong Kong reported a lower profit year on year.  After-sales activities were affected by the pandemic, while supply constraints impacted passenger car deliveries.

Jardine Pacific saw net non-trading losses of US$305 million in the year compared to a net non-trading gain of US$389 million in 2021, as a result of the decrease in the fair value of the investment properties and the impairment of investments, and the absence of the gain on disposal of Hong Kong properties by Zung Fu which was reported in 2021.

Jardines Motor  

The Group's Motors business produced an underlying net profit of US$299 million in 2022, 6% lower than the prior year.  The Group no longer had the benefit of contributions from its Chinese mainland business following its disposal to Zhongsheng in late 2021, although it benefitted from a higher contribution from its 21% interest in Zhongsheng in respect of the second half of 2021 and the first half of 2022, with a strong performance in its used car business.

The Group's United Kingdom motor business delivered a slightly lower profit in 2022, with the business impacted by unfavourable exchange rates in the period.  Despite constrained supply, the new car business performed well due to strong margins.  Used cars also remained resilient, with lower volumes offset by improved margins.

Hongkong Land

Hongkong Land's full-year underlying profits were 20% lower than the prior year, primarily due to a significantly lower profit contribution from the Development Properties business on the Chinese mainland in the second half of the year. The contribution from Investment Properties was resilient, however, with modest financial impacts in the retail portfolio from the pandemic measures introduced across the Chinese mainland in 2022.  The impact of lower average office rents in Hong Kong was partially offset by a reduction in operating costs.  

Profit attributable to shareholders was US$203 million, after including net non-cash losses of US$573 million resulting primarily from lower valuations of the group's investment properties.  This compares to a loss of US$349 million in 2021, which included a US$1,315 million reduction in property valuations.

Investment Properties

In Hong Kong, office leasing demand remained subdued.  Against this backdrop, the group's Central office portfolio remained resilient, outperforming the broader market due to its prime CBD location and premium offering.  Physical vacancy remained below average Central market vacancy levels.  Modestly negative rental reversions, however, resulted in a decrease in average office rents.

Retail market sentiment in Hong Kong was severely affected by the fifth wave of the pandemic in the first half of 2022.  Retail trading benefitted in the second half of the year, however, as social distancing and travel restrictions were progressively relaxed.  Total retail sales nevertheless remained well below pre-pandemic levels, as travel restrictions continued to prevent the return of tourists.  Average retail rents in 2022 in the Central LANDMARK retail portfolio decreased, but vacancy on both a physical and committed basis was unchanged from the prior year.

In Singapore, contributions from the group's office portfolio increased, due to positive rental reversions underpinned by a healthy level of occupier demand, with average office rents increasing and vacancy in the Group's office portfolio remaining low.

In Shanghai, development activity continued at the group's 43%-owned prime 1.1 million sq. m. development on the West Bund. The multi-phase project remains on schedule, with modest impacts from the pandemic-related restrictions in Shanghai during part of the year. The West Bund development is a complex, predominantly commercial, mixed-use site of unprecedented scale.  It is located in a prime waterside location in Shanghai with unrivalled access to the riverside.  When completed, the project will comprise five neighbourhoods and 28 land parcels.  The West Bund has established itself as an international creative industry cluster, supported by three pillars: culture and creative industries, high-tech businesses and the innovative finance sector.  When completed, the development will comprise around 660,000 sq. m. of offices, 210,000 sq. m. of retail space, 170,000 sq. m. of luxury residences, 55,000 sq. m. of five-star hotels, 30,000 sq. m. of convention facilities and 10,000 sq. m. of sports facilities.  It will incorporate an industry-leading approach to sustainability

Development Properties

As anticipated, the profit contribution from the group's Development Properties business on the Chinese mainland decreased compared to the prior year, as a result of a significantly lower profit contribution in the second half of the year, due to fewer planned sales completions and the impact of pandemic-related restrictions on construction activities.  There was also a decrease in the group's attributable interest in contracted sales in 2022, mainly due to weak market sentiment for residential properties and pandemic-related movement restrictions that hampered sales activities. 

In Singapore, recognised profits in 2022 were lower than the prior year, which benefitted from the construction of the wholly-owned 1,404 unit Parc Esta project.  The group's attributable interest in contracted sales rose, however, driven by the healthy pre-sales performance of two new residential projects launched during the year.  

The group continues to be disciplined in evaluating and selecting Development Properties opportunities on the Chinese mainland, with a focus on Tier 1 and Tier 2 cities.  During the year the group made two acquisitions - a primarily residential site in Xuhui District, Shanghai, adjacent to our mixed-used project in West Bund and an interest in a predominantly retail commercial site in Suzhou.  This development reflects the group's strategy of developing luxury and premium lifestyle retail properties on the Chinese mainland.  The group currently has four such properties in operation, and the site in Suzhou will be added to the pipeline of ten further such developments. 

The group also increased its investments in two existing projects, acquiring the remaining 50% interest in the mixed-use project in WE City, Chengdu from KWG Property Holdings Limited and acquiring a 15% interest in Yue City, a mixed-use project in Nanjing, from Country Garden in January 2023.

In Singapore, the group acquired a 49% interest in a residential site in the Jalan Tembusu area.

 

DFI Retail Group

2022 was another very challenging year for DFI Retail.  A combination of inflationary pressures and customer behavioural shifts driven by the pandemic significantly impacted first-half financial performance, reducing profit contributions from the Grocery Retail and Convenience divisions. The group's share of underlying losses from similarly affected associates also materially affected results.

There was, however, a significant improvement in profitability in the second half of the year.  The group needs to continue to adapt to changes in consumer preferences and, despite the external challenges, has increased investments in digital capacity and capability in the year.  While these investments impacted profitability in the year, they are necessary to meet customers' evolving needs and to drive long-term shareholder value.

The group reported an overall underlying profit of US$29 million for the full year.  The group's subsidiaries delivered underlying profit of US$64 million, while associates contributed an underlying loss of US$35 million.  There was an encouraging improvement in second-half underlying profit to US$80 million, representing a US$132 million increase in profitability relative to the first half.

The group's net loss for the year was US$115 million, reflecting an impairment charge of US$171 million in respect of its investment in Robinsons Retail.

Food - Grocery Retail

Underlying operating profit for the Grocery Retail division was US$91 million for the year, lower than the prior year, primarily due to the absence of the panic buying seen last year, further compounded by rising cost of goods sold and increases in operating expenses.  Despite the challenges faced throughout 2022, however, the group has been encouraged by stronger underlying performance, with Grocery Retail underlying profitability significantly above 2019 levels, supported by the group's transformation initiatives.

Food - Convenience

Convenience underlying operating profit was US$51 million for the year, broadly in line with the prior year.  Encouragingly, profitability in the second half improved significantly, with the group reporting US$51 million profit compared to the breakeven result in the first half.

Health and Beauty

Underlying operating profit for the Health and Beauty division increased by 66% to US$94 million, driven by solid sales growth.

Home Furnishings

IKEA's sales for the year were impacted by COVID-related restrictions in the first half and supply chain constraints, which impacted stock availability.  Operating profit was US$46 million, slightly ahead of the prior year, primarily due to strong cost control.

Associates

The performance of Maxim's for the full year was severely hampered by a very challenging first quarter as result of the fifth wave of COVID in Hong Kong, which led to a large number of restrictions on movement and dining.  The group's share of Maxim's underlying losses was US$26 million in the first half of the year.  Encouragingly, Maxim's performance improved as the year progressed, due to solid mooncake sales performance and the easing of dining restrictions.  The group's overall share of Maxim's underlying profits was US$38 million for the full year.

The group's share of Yonghui's underlying losses was US$80 million for the year, compared to a US$90 million share of underlying losses in the prior year.  While Yonghui's like-for-like sales improved in the first half of the year, performance in the second half was impacted by government-imposed restrictions on the Chinese mainland, as well as the slowdown in the overall macroeconomic environment. 

Robinsons Retail reported strong growth in 2022, as it benefitted from the reopening of the Philippines economy, together with an improved product mix and strong cost control.  Robinsons Retail's underlying profit contribution to the group was US$24 million in 2022, over 60% higher than in 2021.

Mandarin Oriental

Mandarin Oriental continued its recovery in 2022 as travel restrictions lifted in most parts of the world and it ended the year strongly, with a return to underlying profitability.  Owned hotels achieved improved occupancy at strong rates, and the management business continued to grow robustly, exceeding 2019 profitability.  The group's management business recorded a strong performance, with robust growth in management fees, particularly from resort destinations such as Bodrum, Turkey, Lake Como, Italy and Dubai, UAE.  The group's management business reported an underlying profit of US$17 million in 2022, compared to US$5 million in 2021.

Most of the Group's owned or partially owned properties reported better earnings in 2022.  The overall performance from owned hotels, however, continued to be adversely affected by lower contributions from the Hong Kong and Tokyo hotels, whose performance was heavily impacted by COVID restrictions throughout the year.  Results were notably better in London, Paris, Singapore, and Bangkok, driven by high rates and improved occupancy from the previous year.  

The group achieved an underlying profit of US$8 million for the full year, its first profit since 2019.  Although profitability remained below pre-pandemic levels, this is a significant improvement compared with 2021, when the group recorded an underlying loss of US$68 million.

The group opened two new hotels in the year, in Shenzhen, China and Lucerne, Switzerland, and two standalone residences in Barcelona, Spain and Beverly Hills, USA.  Five projects are scheduled to open in 2023.

In 2022, the group announced seven new management contracts, in Greece, Italy, Egypt, Kuwait, the Maldives, China and Vietnam. The group's robust development pipeline includes 26 projects expected to be completed in the next five years.

The Causeway Bay site in Hong Kong, which is being redeveloped as a mixed-use commercial building remains on track to complete in 2025.

Jardine Cycle & Carriage

JC&C's underlying profit was 39% higher than 2021 at US$1,096 million. After accounting for non-trading items, profit attributable to shareholders was US$740 million, 12% higher than the same period last year.  Non-trading items in 2022 of US$356 million comprised unrealised fair value losses of US$238 million related to non-current investments, and an impairment loss of US$114 million in respect of the investment in Siam City Cement ('SCCC'), necessary due to a challenging operating environment.

Astra's contribution to the group's underlying profit increased to a record US$913 million from US$655 million last year, with improved performances from most of its businesses, reflecting the recovery in the Indonesian economy and high commodity prices.

The underlying profit from JC&C's Direct Motor Interests increased to US$63 million from US$39 million last year, mainly due to improved contributions from Cycle & Carriage Singapore and Malaysia, and Tunas Ridean in Indonesia.  Other Strategic Interests contributed an underlying profit of US$86 million, down 4% from the previous year.

THACO

THACO contributed a profit of US$83 million, 34% up from the previous year.  The profit from its automotive business continued to grow, supported by strong production levels and a temporary reduction in registration fees for locally-assembled vehicles that expired in May 2022.  Its unit sales were higher and its market share increased.  Margins benefitted from strong demand and an improved sales mix.  The group continues to expand its investment in agriculture and, as a result, saw an increase in losses from this business as substantial pre-production losses were incurred.

Direct Motor Interests

Direct Motor Interests saw an increase of 62% in underlying profit, with better results in Singapore, Malaysia and Indonesia.  Cycle & Carriage Singapore's contribution was 13% higher, mainly due to increased profits from its premium and used car operations.  New passenger car sales fell by 15% as sales volume, particularly in respect of its mass-market models, was adversely impacted by the tightened Certificate of Entitlement cycle.  Market share, however, increased from 15% to 19%.

In Indonesia, Tunas Ridean's contribution was 71% higher than the previous year, with higher profits across its automotive, financial services and leasing businesses.

Cycle & Carriage Bintang in Malaysia saw an increased profit, mainly due to improved sales volumes and margins backed by a larger order book, arising from a temporary reduction in government sales tax.

During the year, JC&C further increased its interest in Cycle & Carriage Bintang from 89.0% to 96.9%, through on-market purchases, acceptances under its Voluntary General Offer and direct purchases from the minority shareholders.  Cycle & Carriage Bintang was delisted from Bursa Malaysia in September 2022.

Other Strategic Interests

The profit from JC&C's Other Strategic Interests decreased by 4% compared with the previous year, with a significantly lower contribution from SCCC, as the business was adversely impacted by higher energy costs and inflationary pressure, as well as increased tax rates in Sri Lanka and the depreciation of the rupee, which offset improved cement volumes and prices in most of its markets.

REE's contribution was, however, 70% higher than the previous year, mainly due to an improved performance from its renewable energy investments as a result of favourable hydrology.

The group's investment in Vinamilk produced a slightly lower dividend income of US$37 million compared to US$39 million last year.  Vinamilk reported a decrease in net profit, mainly due to higher raw material costs.

Astra

Astra delivered record earnings, with net profit under Indonesian accounting standards of Rp28.9 trillion, equivalent to US$1.9 billion, 43% higher than 2021.  Excluding the net fair value loss on the group's investments in GoTo and Hermina, Astra's net profit of Rp30.5 trillion, or US$2.0 billion, was 51% higher than 2021.

A strong recovery in the Indonesian economy and higher commodity prices drove stronger performances from all of Astra's businesses and in particular its infrastructure and logistics, heavy equipment and mining and automotive divisions.

Automotive

Net income from Astra's automotive division increased by 33% to US$648 million, reflecting higher sales volume.  

The wholesale car market increased by 18% in 2022.  Astra's car sales for that period were 17% higher, with market share relatively stable at 55%.  The wholesale motorcycle market increased by 3%, while Astra Honda Motor's sales increased by 2%, with sales growth limited by semiconductor supply issues, while market share remained relatively stable at 77%.

Astra Otoparts saw a 117% increase in profit compared to the previous year, mainly due to higher revenues from the original equipment manufacturer and replacement market segments.

Financial Services

Net income from the group's financial services division increased by 22% to US$404 million, due to higher contributions from its consumer finance businesses, which saw a 21% increase in new amounts financed.  The net income contribution from the group's car-focussed finance companies increased due to larger loan portfolios, while the contribution from Astra's motorcycle-focussed finance company, Federal International Finance, was higher due to larger loan portfolios and lower loan loss provisions.

General insurance company Asuransi Astra Buana reported a 12% increase in net income to US$80 million, mainly caused by higher investment and underwriting income.  

Heavy Equipment, Mining, Construction and Energy

Net income from the group's heavy equipment, mining, construction and energy division increased by 107% to US$850 million, mainly due to higher contributions from heavy equipment sales, mining contracting and coal mining, all of which benefitted from unprecedented coal prices.

United Tractors reported a 104% increase in net income to US$1,408 million.  Komatsu heavy equipment sales rose significantly and revenue from its parts and service businesses was higher.  Mining services contractor Pamapersada Nusantara recorded a higher overburden removal volume, while coal production was relatively stable.  Agincourt Resources, 95%-owned by United Tractors, reported a decrease in gold sales.

General contractor Acset Indonusa, 82.2%-owned by United Tractors, reported a lower net loss of US$30 million. Net losses continued to be incurred mainly as a result of the continued slowdown of several ongoing projects.

Agribusiness

Net income from Astra's agribusiness division decreased by 12% to US$92 million, largely due to lower crude palm oil sales volumes and production, which offset an increase in selling prices.

Infrastructure and Logistics

Astra's infrastructure and logistics division reported a significant increase in net income to US$35 million, primarily due to improved performance in its toll road businesses.  The group's toll road concessions saw higher toll revenue during the period.  Astra has 396 km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road.   Serasi Autoraya's net income increased by 19%, mainly due to an increase in vehicles under contract, despite a lower used car earnings contribution.

Information Technology

Net income from the group's information technology division was 12% higher at US$5 million.

Property

The group's property division saw a 10% increase in net income to US$9 million, primarily due to a higher occupancy rate in Menara Astra and the handover of units in the Arumaya development starting at the end of 2022.

 

Outlook

The encouraging recovery in performance across many of our businesses continued in 2022 and overall earnings returned to levels last seen in 2019.  This reflected the broad diversification of the Group, even while many  of our businesses in Hong Kong and the Chinese mainland were held back by the continued impact of the pandemic. 

We are optimistic that the reopening of borders, as well as opportunities in Southeast Asia will drive the Group's cyclical recovery during 2023 despite softening commodity prices, and we remain confidential in our strategy for sustainable, long-term profit growth.

 

John Witt

Group Managing Director

 

 

Jardine Matheson Holdings Limited Consolidated Profit and Loss Account for the year ended 31st December 2022
	2022											2021
Underlying business performance US$m			Non- trading items US$m				Total US$m					Underlying business performance US$m					Non- trading items US$m				Total US$m
Revenue (note 2)		37,724				-					37,724					35,862				-					35,862
Net operating costs (note 3)		(33,598)				(363)					(33,961)					(32,534)				1,114					(31,420)
Change in fair value of investment properties		-				(930)					(930)					-				(1,410)					(1,410)
Operating profit		4,126				(1,293)					2,833					3,328				(296)					3,032
Net financing charges
- financing charges		(625)				-					(625)					(595)				-					(595)
- financing income		197				-					197					206				-					206
		(428)				-					(428)					(389)				-					(389)
Share of results of associates and joint ventures (note 4)
- before change in fair value of investment properties		1,232				(411)					821					1,178				10					1,188
- change in fair value of investment properties		-				(3)					(3)					-				81					81
		1,232				(414)					818					1,178				91					1,269
Profit before tax		4,930				(1,707)					3,223					4,117				(205)					3,912
Tax (note 5)		(964)				4					(960)					(828)				(123)					(951)
Profit after tax		3,966				(1,703)					2,263					3,289				(328)					2,961
Attributable to:
Shareholders of the Company (notes 6 & 7)		1,584				(1,230)					354					1,513				368					1,881
Non-controlling interests		2,382				(473)					1,909					1,776				(696)					1,080
		3,966				(1,703)					2,263					3,289				(328)					2,961
		US$									US$					US$									US$
Earnings per share (note 6)
- basic		5.49									1.22					4.83									6.01
- diluted		5.49									1.22					4.83									6.01

 

 

 

Jardine Matheson Holdings Limited Consolidated Statement of Comprehensive Income for the year ended 31st December 2022
			2022 US$m					2021 US$m
Profit for the year			2,263						2,961
Other comprehensive expense
Items that will not be reclassified to profit and loss:
Net exchange translation loss arising during the year			(718)						(62)
Remeasurements of defined benefit plans			37						86
Net revaluation surplus before transfer to investment properties
-  tangible assets			-						75
-  right-of-use assets			39						3
Tax on items that will not be reclassified			(7)						(9)
			(649)						93
Share of other comprehensive income of associates and joint ventures			9						9
			(640)						102
Items that may be reclassified subsequently to profit and loss:
Net exchange translation differences
- net loss arising during the year			(569)						(165)
- transfer to profit and loss			4						(21)
			(565)						(186)
Revaluation of other investments at fair value through other comprehensive income
- net loss arising during the year			(20)						(2)
- transfer to profit and loss			(2)						(3)
			(22)						(5)
Cash flow hedges
- net gain arising during the year			92						75
- transfer to profit and loss			(7)						12
			85						87
Tax relating to items that may be reclassified			(11)						(21)
Share of other comprehensive expense of associates and joint ventures			(963)						(16)
			(1,476)						(141)
Other comprehensive expense for the year, net of tax			(2,116)						(39)
Total comprehensive income for the year			147						2,922
Attributable to:
Shareholders of the Company			(660)						1,908
Non-controlling interests			807						1,014
			147						2,922

 

 

 

 

Jardine Matheson Holdings Limited Consolidated Balance Sheet at 31st December 2022
							At 31st December
							2022 US$m				2021 US$m
Assets
Intangible assets							2,528				2,635
Tangible assets							5,853				6,184
Right-of-use assets							4,184				4,274
Investment properties							31,813				32,847
Bearer plants							465				499
Associates and joint ventures							17,856				17,980
Other investments							2,801				2,908
Non-current debtors							3,222				2,961
Deferred tax assets							575				518
Pension assets							17				32
Non-current assets							69,314				70,838
Properties for sale							3,311				3,345
Stocks and work in progress							3,513				2,793
Current debtors							6,873				6,928
Current investments							18				46
Current tax assets							156				172
Bank balances and other liquid funds
- non-financial services companies							5,526				6,904
- financial services companies							372				378
							5,898				7,282
							19,769				20,566
Asset classified as held for sale							65				85
Current assets							19,834				20,651
Total assets							89,148				91,489

                                                                                                                                                                                                                                                                                                                                                                                                                                                         

 

 

 

							At 31st December
							2022 US$m				2021 US$m
Equity
Share capital							73				179
Share premium and capital reserves							26				25
Revenue and other reserves							28,727				35,800
Own shares held							-				(6,223)
Shareholders' funds							28,826				29,781
Non-controlling interests							27,371				28,587
Total equity							56,197				58,368
Liabilities
Long-term borrowings
- non-financial services companies							10,541				11,026
- financial services companies							1,532				1,273
							12,073				12,299
Non-current lease liabilities							2,951				3,022
Deferred tax liabilities							791				743
Pension liabilities							368				451
Non-current creditors							191				250
Non-current provisions							336				309
Non-current liabilities							16,710				17,074
Current creditors							10,459				10,074
Current borrowings
- non-financial services companies							2,500				2,513
- financial services companies							1,663				1,846
							4,163				4,359
Current lease liabilities							772				812
Current tax liabilities							672				609
Current provisions							175				193
Current liabilities							16,241				16,047
Total liabilities							32,951				33,121
Total equity and liabilities							89,148				91,489