9 Apr 2009 10:14
Jardine Strategic Holdings LimitedPublication of 2008 Annual Report and Notice of Annual General MeetingJardine Strategic Holdings Limited (the 'Company') has today published on the Company's website, www.jardines.com, its Annual Report in respect of the year ended 31st December 2008 (the 'Annual Report').A printed copy of the Annual Report, together with the notice of the 2009 Annual General Meeting and form of proxy, are today being posted to shareholders.Copies of the above documents have also been submitted to the UK Financial Services Authority, and will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility situated at The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS. The audited Preliminary Results for the year ended 31st December 2008, which were announced on 6th March 2009, contained a condensed set of the financial statements prepared in accordance with International Financial Reporting Standards.In compliance with paragraph 6.3.5 of the Disclosure and Transparency Rules of the UK Financial Services Authority ('DTR'), a description of the principal risks and uncertainties and a responsibility statement prepared in accordance with the requirements of DTR 4.1 and details of related party transactions having a material effect on the financial position or performance of the Group prepared in accordance with the requirements of DTR 4.2, are set out in Appendix A. Neil McNamara, Jardine Matheson LimitedFor and on behalf of Jardine Strategic Holdings Limited9th April 2009www.jardines.com
Appendix A
References to Corporate Governance, Chairman's Statement, Operating Review and Financial Review below refer to the respective sections in the Annual Report. Page references refer to page numbers in the Annual Report. References to notes to the financial statements refer to notes in the Annual Report.Principal Risks and UncertaintiesThe Board has overall responsibility for risk management and internal control. The process by which the Group identifies and manages risk is set out in more detail on pages 87 and 88 of the Corporate Governance section of this Report. The following are the principal risks and uncertainties facing the Company as required to be disclosed pursuant to the Disclosure and Transparency Rules issued by the Financial Services Authority of the United Kingdom and are in addition to the matters referred to in the Chairman's Statement and Operating Review.Economic RiskMost of the Group's businesses are exposed to the risk of negative developments in global and regional economies and financial markets, either directly or through the impact on the Group's joint venture partners, franchisors, bankers, suppliers or customers. These developments can result in recession, inflation, deflation, currency fluctuations, restrictions in the availability of credit, business failures, or increases in financing costs, oil prices and in the cost of raw materials. Such developments might increase operating costs, reduce revenues, lower asset values or result in the Group's businesses being unable to meet in full their strategic objectives.Commercial Risk and Financial RiskRisks are an integral part of normal commercial practices, and where practicable steps are taken to mitigate such risks. These risks are further pronounced when operating in volatile markets. A number of the Group's businesses make significant investment decisions in respect of developments or projects that take time to come to fruition and achieve the desired returns and are, therefore, subject to market risks.The Group's businesses operate in areas that are highly competitive, and failure to compete effectively in terms of price, product specification or levels of service can have an adverse effect on earnings. Significant pressure from such competition may lead to reduced margins. The quality and safety of the products and services provided by the Group's businesses are also important and there is an associated risk if they are below standard.The steps taken by the Group to manage its exposure to financial risk are set out in the Financial Review on page 15 and note 2 to the Financial Statements on pages 30 to 33.Concessions, Franchises and Key ContractsA number of the Group's businesses and projects are reliant on concessions, franchises, management or other key contracts. Cancellation, expiry or termination, or the renegotiation of any such concession, franchise, management or other key contracts, could have an adverse effect on the financial condition and results of operations of certain subsidiaries, associates and joint ventures of the Group.Regulatory and Political RiskThe Group's businesses are subject to a number of regulatory environments in the territories in which they operate. Changes in the regulatory approach to such matters as foreign ownership of assets and businesses, exchange controls, planning controls, emission regulations, tax rules and employment legislation have the potential to impact the operations and profitability of the Group's businesses. Changes in the political environment in such territories can also affect the Group's businesses.Terrorism, Pandemic and Natural DisastersA number of the Group's operations are vulnerable to the effects of terrorism, either directly through the impact of an act of terrorism or indirectly through the impact of generally reduced economic activity in response to the threat of or an actual act of terrorism.All Group businesses would be impacted by a global or regional pandemic which could be expected to seriously affect economic activity and the ability of our businesses to operate smoothly. In addition, many of the territories in which the Group operates can experience from time to time natural disasters such as earthquakes and typhoons.Responsibility StatementThe Directors of the Company confirm to the best of their knowledge that:(a) the consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, including International Accounting Standards and Interpretations adopted by the International Accounting Standards Board; and(b) the sections of this Report which constitute the management report include a fair review of all information required to be disclosed by the Disclosure and Transparency Rules 4.1.8 to 4.1.11 issued by the Financial Services Authority of the United Kingdom.For and on behalf of the BoardA.J.L. NightingaleLord Leach of FairfordDirectorsRelated Party TransactionsIn the normal course of business the Group undertakes a variety of transactions with certain of its associates and joint ventures, and with Jardine Matheson. The most significant of such transactions relate to the purchase of motor vehicles and spare parts from the Group's associates and joint ventures in Indonesia including PT Toyota - Astra Motor, PT Astra Honda Motor and PT Astra Daihatsu Motor. The total cost of motor vehicles and spare parts purchased from associates and joint ventures for the year ended 31st December 2008 amounted to US$4,182 million (2007: US$3,087 million). There were no other related party transactions that might be considered to have a material effect on the financial position or performance of the Group that were entered into or changed during the year.