175 Years of Looking to the Future

C M Y K

175 Years of Looking to The Future

Merchant Adventurers 5

Great Foresight and Market Knowledge 9

Independent Spirit 13

Courageous and Determined 17

Further Transformation and Innovation... 23

Calculated Risk Takers 27

Looking Ahead 31

A Market Leader Today 33

Timeline 38

Contents

An Enterprising Spirit

175 years ago, William Jardine and James Matheson formed a trading partnership that was to become one of the most successful, long lasting, diversified enterprises in Asia. The success of Jardine Matheson has been due in no small part to its unique character, which to this day clearly reflects many of the personal traits of the founders.

Not only did the two founding Scotsmen, one highlander and one lowlander, instil an enterprising spirit into their newly created trading venture in 1832, but also qualities such as a strong work ethic, an independent spirit, financial prudence, business foresight, determination and the understanding of the need to build strong relationships in business. Over the years, these qualities have helped those working for Jardines overcome many challenges and consolidate its position in Asia.

There has been a constant evolution in the nature of the business interests of Jardine Matheson, or ‘the Firm’ as it has been affectionately known for most of its existence. Its business activities have kept pace with the times during its long history as new opportunities were sought when the profitability of older ventures waned.

Today, Jardines’ businesses are at the forefront of their chosen markets. They include property investment and development, luxury hotels, retail, motor vehicles, financial services and insurance, engineering and construction, agribusiness, mining, restaurants and IT services. The Group is active principally in the markets of Asia, although some operations have a greater international reach, and it employs over 230,000 people.

To mark our 175th anniversary, this review has been prepared for those who work within the Group. It highlights key events that help demonstrate the role that the Firm’s character has had in shaping its destiny and illustrates the wide diversity of the Group today. It does not try to cover the full range of Jardines’ extensive activities over its long history, but is intended to provide an understanding of who we are.

We can all be proud to be part of a unique Group that has achieved so much, and look forward with confidence to creating its future.

Anthony Nightingale Managing Director Jardine Matheson November 2007 The Firm’s Chinese name, EWO, which means ‘happy harmony’ was more widely used in Shanghai and the north, and was only adopted formally in Hong Kong in 1958. Merchant Adventurers

William Jardine and James Matheson created an enterprise that was to withstand the test of time.

Merchant Adventurers

William Jardine James Matheson It was said that he allowed only one A more volatile temperament than chair in his office as business was his partner and enthusiastic about conducted standing so as to be dealt new ideas. A keen reader (he with as quickly as possible. Once bought Morrison’s Grammer of the at the Petition Gate in Canton he was Chinese Language and his Chinese clubbed on the head from behind and dictionary), and founded the first did not so much as turn round, after English-language newssheet in which he was known among China – the Canton Register. the Chinese as ‘iron-headed old rat’, a name he rather enjoyed. Who were William Jardine and James Matheson?

They both had successful careers as merchants before they many different countries. He, like Jardine, was hard working and decided to join forces and establish the partnership, Jardine, single-minded about success, but he was recognized more as a Matheson & Co in 1832. They had great mutual respect for each creative, freethinker with strong communication skills. other’s abilities, but their styles and personalities were different. It was only after both men found themselves without business William Jardine was born in 1784 in the Scottish lowlands and partners that they sought each other out. Matheson’s enthusiasm graduated from Edinburgh University with a degree in medicine. and imaginative flair complemented the patient determination In 1803, at the age of 19, he became a surgeon on the ships of the and application of the older Jardine. East India Company working the trading routes between London, China and India; a position he held for the next 14 years. As a Jardine, Matheson & Co opened for trading in Canton on 1st July 1832. senior ship’s officer he was allocated an amount of cargo space enabling him to trade privately in a small way, and in so doing Both founders brought important relationships and business developed a keen sense of what commodities sold well. contacts to the new enterprise, all of which were valued as they were considered essential for the success of the Firm. He was a diligent, rather austere, hard working man with an eye for detail and a huge intellect. A man of few words, he hated One striking example of a special relationship that Jardine and humbug and idleness and often worked long hours, expecting Matheson formed was with Jamsetjee Jejeebhoy, an independent those working with him to do the same. William Jardine set up Parsee merchant from Bombay. William Jardine had first met in Canton as a free merchant in 1822 and later, in 1828, joined him in 1805 when they had both been taken prisoner by the Magniac & Co, which was the forerunner to Jardines. French after a British ship, on which they were sailing, had been captured during hostilities between the two countries. In the James Matheson was born in 1796 in the Scottish highlands and decade between 1830 and 1840 the trading relationship with also attended Edinburgh University. In 1815 he began work as a Jamsetjee Jejeebhoy proved beneficial to both parties. free merchant in Calcutta at his uncle’s Agency House, trading goods and services between different markets and communities. William Jardine and James Matheson created an enterprise that was to withstand the test of time. They built strong relationships Three years later, and still only 22, Matheson set sail for China in business that set the standards which subsequent generations determined to take advantage of the opportunities he saw in were to follow. They instilled a strong work ethic, an independent the rapidly expanding Indian export market. He quickly became spirit, financial prudence, business foresight and a determination known as one of the most inventive foreign traders in Canton as to succeed. a partner within the firm Yrissari & Co, one of the five principal Agency Houses in China at the time, branching out into trade with

Great Foresight and Market Knowledge

We can often see further and sooner than others in business… James Matheson

Great Foresight and Market Knowledge

Ahead of their Rivals

During the mid 1800s, tea, silks, cotton and opium were traded through different firms along the vast trade routes between China, India and Britain on sailing vessels and later steam ships. The times were tough and the competition was fierce. The huge East India Company had held a powerful monopoly on trade between England and the Far East until 1834, but even after the British government moved to end it, market conditions remained challenging with large numbers of private traders vying for business.

Yet William Jardine and James Matheson, being astute businessmen, were able to stay well ahead of their rivals. As James Matheson wrote in a letter in 1832:

“We can often see further and sooner than others in business…”

It was this foresight based on a depth of market knowledge that enabled the pair to take the lead in the export of many commodities.

After the ending of the East India Company’s monopoly, the Built in India by the enterprising Captain Clifton to the plans of an Firm also moved quickly to ensure theirs was the first ‘free’ tea American privateer, barque-rigged and delivered to the docks of Glasgow, Hull and Liverpool. Beginning close-hauled to beat to Canton and with only a few of their own small ships and chartering others, back against the monsoon winds, Jardines soon owned a large fleet of fast, handsome sailing Red Rover made her first round trip from Calcutta to Canton in an clippers that could out-sail most competitors. astonishing 86 days and thus changed the tempo of the China trade. From Tea became the Firm’s largest export from China as the popular 1833 Jardines owned half – and later fragrant drink became an everyday beverage in England. Jardines all – of her. was the first company to engage an official ‘tea taster’ in China to ensure they had a greater understanding of the different varieties of tea, thus enabling them to command the best prices.

Jardine Matheson built ‘godowns’ as New trade routes and different technology brought changes to their first proper buildings at East Point in Hong Kong. As in Venice, the the business in the second half of the century. Matheson had merchants lived over their cargoes long been fascinated by the idea of steam propulsion and the stored in warehouses below. Firm quickly embraced steam power when it became available. They proudly took delivery of the first of many steam ships, the ‘Jardine’, in 1835 and stayed one step ahead of their rivals. The ceding of Hong Kong to Britain under the Treaty of Nanking in 1842 provided a unique opportunity for Jardines. It enabled the Firm to buy one of the first blocks of land in the new colony of Hong Kong and develop a foothold in a city that would play a key role in Jardines’ future. As historian Jack Beeching commented:

“One man who immediately saw Hong Kong’s potential was James Matheson. He moved the firm’s headquarters there in 1841 and immediately began to build a large stone godown (warehouse) as solid as a fortress”

The Firm has engendered a great sense of pride and belonging for many that have had the opportunity to work within it. Sir Robert Ho Tung, one of Jardines’ most famous compradors, had a relationship with the Firm that lasted nearly 70 years. A comprador was the Chinese manager of a foreign firm in China. Sir Robert, however, was also a businessman in his own right with a large network of contacts. He was a great philanthropist, and was held in high respect around the world receiving many honours and awards.

Here, opposite the Canton hongs where the Firm had its offices at No. 4, the Creek, Sir Robert worked for Jardines for 20 years, and afterwards tea is loaded on to a small boat for transport to the ships waiting at Whampoa. remained a close adviser to generations of leaders at the Firm. In 1938 the famous ‘grand old man’ was quoted as saying:

“Jardines, or ‘the Princely House’… has become so much a part of my commercial life that I share the same sense of pride that every member of the Firm still feels when the name Jardines is mentioned.

I have had the privilege of sharing in the creation of a vast network of business connections and seeing the growth and expansion of the Firm as it has become an outstanding business organization.”

These Jardines staff are posing carefully in the fine old gardens of Soochow near Shanghai. As the Firm had no office in Soochow, an important silk centre, perhaps it was Sir Robert Ho Tung joined the Firm as an office outing, hence the children a clerk in the Chinese Shipping Office and the photograph to record it. in 1880, and had worked in every department by 1900. His relationship with the Firm spanned nearly 70 years.

Independent Spirit

One of the features in Jardines’ history is not only a remarkable power to adapt to changing circumstances, and so often be ahead of its rivals, but also a great persistence over long-term projects in which it had confidence. James Blake

13 Independent Spirit

Dramatic Change and Advance

Jardines’ activities underwent For example, the Firm was a dramatic transformation convinced that railways in the nineteenth century were going to be important from an Agency House acting in China’s development. It for principals, to a more lobbied and worked with the diversified business. It traded government for many years to in a wide variety of imports open a railway system, facing and exports, promoted a fair amount of resistance. railways and other much Jardines constructed the first needed infrastructure projects railway line in China from in China, and founded banks Shanghai to Woosung in 1876, and insurance companies as followed later by the much The Shanghai-Nanking line, built between 1904 and 1908 and larger Shanghai-Nanking line financed through the British and Chinese Corporation against the country modernized. heavy competition from other countries, was Jardines’ major between 1904 and 1908. railway-building success. Here at Nanking station for the The Firm was a pioneer of new arrival of the first train in 1908 are Chinese officials, Jardines’ ideas, continually adapting Jardines’ insurance business, C.E. Anton and railwaymen. to the changing conditions. which was founded in 1836 in Founder James Matheson was Canton to support its growing well known for his innovative shipping business, owes thinking, while William Jardine much of its initial growth to had the perseverance to see the rapid expansion of the projects through to success; Firm’s other businesses in these characteristics have China. As late as 1860 it was remained consistent over still the only local insurance the decades. company in China. To cater for Jardines’ first modern press packing machine greatly increased the Firm’s business in hides and skins from North and West China, most of which were Jardine Engineering Corporation’s destined for America for furnishings. head office in Shanghai in 1927. clients travelling between The founding of Jardine Historian James Blake wrote of Europe and the Far East, it Engineering Corporation in the Firm: had representation along the 1923 is an example of the main steamer routes and at ability of the Firm to nurture “One of the features in Jardines’ points on the Trans-Siberian new enterprises to form larger history is not only a remarkable Railway, including an agency businesses – as it has also done power to adapt to changing in Moscow. with many other ventures over circumstances, and so often the years. The corporation was be ahead of its rivals, but also Jardines built textile mills formed out of the engineering a great persistence over long- in China with new imported department of the Firm and was term projects in which it had machinery from Britain a major force for innovation confidence” and then exported its and change then, as it is now. It products around the world. installed the first lift in China in These pioneering features Industrialized operations 1930; pioneered ammonia-type remain characteristic of and a large network of air conditioners and new types Jardines today in the twenty- wharves and warehouses in of heating and sanitation; and first century. large ports meant Jardines even provided the vault doors remained a leading company of the 1935 headquarters of in China in the first half of the The Hongkong and Shanghai twentieth century. Banking Corporation.

One of the fleet of motor transport lorries outside Jardines’ tung oil installation at Hankow.

Staff in the Hankow office of Jardine, Matheson & Co in the late 1920s.

Courageous and Determined

These were difficult and hard years, but the spirit of the Firm stayed high. Sir John Keswick

17 Courageous and Determined

Surviving the Hard Times

Jardines has survived many the location of Jardines’ head difficult and challenging office from1 912. He became periods in its history. Unrest a fluent Chinese speaker, and and conflict in China in the had a passion for the country 1930s, the Second World where he developed strong War from 1939 to 1945 and relationships and networks the Communist revolution in that would prove invaluable China of 1949 marked great for many years. In his personal turmoil in the region. They memoirs, however, he provides created great challenges that a vivid account of the real the Firm was forced to address dangers faced by the Firm’s staff Sir John Keswick first joined the Firm and overcome. in Shanghai in the late 1930s: Jardines’ staff in Shanghai joined a wide range of Volunteer Corps to help protect the in 1929, following in the steps of his settlements in the troubled years leading up to Japan’s entry into the Second World brother, father and grandfather. War. (The Firm’s sandbagged main office on the Bund can be seen on page 16) Sir John Keswick, a great, great, nephew of William Jardine, “By 1937 Japan began to advance into China, and the International Settlement in Shanghai found itself joined the Firm after university surrounded by warring armies. We were caught in the crossfire, shaken by bombs falling on the city and and worked first in England on the Japanese warships lying in the harbour outside our offices…. We carried on trade as best we and the United States. He could. From Scotland my mother cabled ‘I am very worried about you’. I answered, ‘I am very worried moved to Shanghai in 1931, about myself’.”

Lieutenant Wilkinson, The little Jardines’ ship Liwo, built by the Hong Kong and Whampoa Dock Company in 1938, was requisitioned by the Royal captain of Liwo. Navy in 1940. She was sunk in an action off Singapore against superior Japanese forces, for which many of her crew received awards, including a posthumous Victoria Cross for her captain, Lieutenant Wilkinson, a Jardines (Indo-China) officer. Stanley Camp where many civilians were interned in appalling conditions for three and a half years.

With Japan’s entry into a the prisoners in daily routines rapidly expanding Second and ensuring a fair distribution World War, the situation of meagre food supplies. A worsened for staff at Jardines. prisoner of war who returned The offices were closed in to Australia later wrote about mainland China and, on Newbigging in a letter to the 25th December 1941, Hong Firm in 1948: Kong surrendered to the invading Japanese. Many of “Nothing appeared to daunt his Jardines’ staff were interned courage or reduce his dynamic at the Stanley Camp on the energy. It is my firm belief that south of Hong Kong Island or without his leadership many more other camps in the Colony, of his fellow prisoners would while others were exiled in have died” Macau, mainland China and elsewhere. The local Chinese It was Newbigging and others staff struggled to survive of the Jardines staff who in a dangerous, occupied walked from Stanley, ragged Hong Kong. and emaciated, to thank those who had helped them, and Throughout the three harsh to celebrate their freedom by years of occupation, courage re-opening the Firm’s offices and determination sustained in Hong Kong as soon as In April 1942 David Bosanquet of Jardines escaped from Sham Shui Po P.O.W. those interned at Stanley. The they could. camp in Kowloon. This note to the Firm’s comprador, Henry Lo, was scribbled while hiding near Sai Kung in the New Territories, and honoured by Jardines after surviving Jardines staff said the war in 1945. Many Chinese staff in mainland China and Hong Kong ran great they would never forget the The war years and their risks to help Jardines internees during the Japanese occupation. loyalty shown by Jardines’ immediate aftermath comprador, Henry Lo, and demonstrated the strength, other members of Jardines’ courage and determination Chinese staff who provided of many at the Firm. William help and support to the Jardine, although described prisoners at great personal risk by many as austere, was also to themselves. recognized as a man who was ‘generous with a great sense Second World War historian of gratitude’. Survival during After the fall of Hong Kong to Oliver Lindsay praises these difficult years also the Japanese Imperial Army on D.L. Newbigging, a director highlighted a strong spirit of 25th December 1941, expatriate civilians and soldiers were rounded of Jardines who was a prisoner co-operation and generosity up and taken to internment in Stanley at Stanley, for playing an as people worked together Camp – south of Hong Kong Island, or important role in organizing to help one another. P.O.W. camps elsewhere in the Colony.

Seeking New Opportunities

Further Transformation and Innovation…

The second half of the twentieth century brought with it a new period of prosperity and a transformation within Jardines.

23 Further Transformation and Innovation...

New Trends, New Businesses

Between 1950 and 1980 Waugh and Co with operations of new opportunities that Jardines underwent in Malaya, Singapore, Thailand were being presented. It was The acquisition of Wellcome by another period of dramatic and Borneo. Over the years at this time it sought a stock Dairy Farm created challenges of transformation. Just as the the interests of the Group exchange listing. attracting middle class Chinese nineteenth century had brought changed, but throughout customers to a new way of shopping change with industrialization, the 1950s and 1960s it was Success at Jardines has always in European style supermarkets. the decades following the heavily involved in trading, tin relied on an ability to read the Second World War brought a mining, rubber estates and market, identify trends and new period of prosperity. other industrial operations in change accordingly. Dairy Farm Southeast Asia. recognized that people were Jardines needed to seek demanding more shopping new opportunities after its In Hong Kong, to which convenience as they worked businesses, along with all Jardines’ head office had longer hours in the busy city. other foreign firms in mainland returned, the Firm reflected In 1964 Dairy Farm acquired a China, were closed after the the changes occurring in the fledgling supermarket chain, Communist government took city. The trading port was Wellcome, which was to control. In 1954 Jardines being transformed into an develop into one of the most expanded into Southeast Asia international business centre, successful retail operations through an investment in Henry and Jardines took advantage in Asia.

The first 7-Eleven was opened by Jardines in 1981, and later, under the ownership of Dairy Farm, the chain has expanded across Hong Kong.

Jardine House (then the Connaught Centre) was a bold landmark in Hong Kong when completed in 1973 as the first ‘skyscraper’ in Central. Gammon is Hong Kong’s leading construction contractor responsible for a significant proportion of its commercial and residential buildings, bridges, container ports, tunnels, railways and roads.

Elsewhere in the Group, By the beginning of the 1970s, The Firm also took advantage Hongkong Land’s chairman, the greater sophistication of of the building boom in the Hugh Barton, inspired the Asia’s financial markets and city and acquired leading opening in 1963 of the financial the increasing personal wealth, construction and civil district’s landmark five star particularly in Hong Kong, led engineering group Gammon hotel, The Mandarin, when the Firm to seek opportunities Construction in 1975. It also he said that: in the financial services sector. diversified into the luxury car Henry Keswick, the current market by acquiring Zung Fu “The island needed one great hotel Chairman of Jardine Matheson, in the same year, recognizing with the individuality that only had been in discussions with there would be a demand the leaders of Hong Kong could Robert Fleming & Co Ltd, a for quality cars among give it…” leading London merchant the increasingly affluent bank, and in 1970 they population in the city. launched Hong Kong’s first investment bank in a 50/50 1979 was an important year for partnership. It was called the Firm because it was able Jardine Fleming. Jardines’ to re-establish its presence extensive relationships in in mainland China after an Asia, coupled with Fleming’s absence of more than 25 years. financial expertise, were a Jardines opened one of the first winning combination and foreign representative offices Jardine Fleming opened for one of Asia’s most successful in Beijing, quickly followed by business in Hong Kong in 1970 under merchant banks was born. Shanghai and Guangzhou. the leadership of Peter Jamieson, a young merchant banker from London. From modest beginnings, Asia’s first merchant bank soon made its mark across the region in the areas of fund management and corporate finance.

Opened in 1963, The Mandarin soon became a byword for impeccable service and elegance, and by 1967 The insatiable demand for Mercedes- was listed by Fortune Magazine as Benz motor cars in Hong Kong was one of the 11 great hotels of the world nurtured by Zung Fu, which acquired alongside the Ritz in Paris and the the distribution rights in 1954 and Grand in Rome. became part of the Group in 1975.

Calculated Risk Takers

There are always opportunities for those who dare to take the risks. James Matheson

27 Calculated Risk Takers

Creating Opportunities

William Jardine and James Matheson were not afraid to take calculated risks, and the Firm has continued to adopt this approach to the present day.

There is no better example than Jardines’ move into Indonesia in 2000. When the rest of the world was still nervous about investing in Southeast Asia after the 1997 Asian financial crisis, Jardines saw an opportunity.

It considered carefully the risks From humble beginnings, Astra and, through Jardine Cycle & has grown to become a substantial Carriage, began its long- diversified business in Indonesia with term successful investment a workforce of over 120,000 people. Its success is based on its stated in leading Indonesian values of being an asset to the nation; conglomerate, Astra providing the best service to its International. customers; respecting individuals and promoting team work; and continually striving for excellence. Astra, like Jardines, has a long and proud history. Founded by two brothers, its origins were as a small trading business. It, too, was built with an enterprising spirit, hard work and determination. Over the past 50 years, the business has been developed into Indonesia’s premier motor manufacturer and distributor with significant interests in financial services, heavy Hongkong Land has set new benchmarks in its joint- venture development of One Raffles Quay, which is recognized as Singapore’s leading office building in the prime business district. equipment and agribusiness. Mandarin Oriental embarked South and Southeast Asia Jardines saw a great on an international programme providing quality stores and commonality of values with of expansion when it acquired excellent value tailored for the management of Astra, and The Rafael Group in 2000 and each country’s consumers. Astra is now just over 50% gained important footholds in The locally styled ‘Giant’ owned. Its acquisition proved Europe and North America. It hypermarkets were a key an important one for Jardines, has taken the best elements of innovation in Southeast not only financially, but also service and Oriental style and Asia and are an increasingly by consolidating Jardines’ added contemporary design, important element of Dairy presence in and commitment signature restaurants and the Farm’s growth strategy. to Southeast Asia. latest technology to take its unique brand from its Asian The Group has faced many The contemporary style There are many other heartland to new markets in challenges and difficulties of Mandarin Oriental, New York and the examples of Group companies Europe and the Americas. With over the years – and not every elegance of Mandarin taking calculated risks as further management contracts investment has proven to be Oriental, Munich both they grow their businesses. and selective investments, the successful – but the fact that contribute to the Hongkong Land is bidding for group is building a network the Firm has survived and increasing recognition of the group’s ability new development sites around of award-winning hotels; prospered for 175 years while to provide many of the the region, and, in the process, the majority of which will be successive competitors have world’s most desirable is broadening its exposure outside Asia. fallen by the wayside would hotels; offering guests to key Asian markets. It indicate that Jardines has twenty-first century luxury combined with has successfully managed Dairy Farm, too, has shown had more than its fair share Oriental charm. long lead times, market a clear ability to tackle and of success. volatility and significant win business in new markets financial exposure. across mainland China,

Dairy Farm is developing supermarkets, hypermarkets, health and beauty stores, convenience stores and home furnishing stores under a range of banners across Asia.

Looking Ahead

For 175 years Jardines has prospered often challenging markets has ensured in the good years, and has successfully a rich diversity of talent and skill across weathered the bad times. The strength the Group. It remains as committed of character shown by William Jardine as ever to attracting and retaining the and James Matheson, and carried on by right people. generations of managers and employees, has given the Firm a special place in Jardines today has excellent market history. The founders’ legacy has been leading businesses, each enjoying a their enterprising spirit that has been strong financial position and having nurtured by generations of partners and a clear strategy for growth. Market directors, a number of whom have family knowledge and keen foresight remain links to William Jardine. This has helped important, the ability to innovate is ensure the Firm’s longevity. crucial, and a determination to see the job through remains a hallmark of the Jardines’ long commitment to its many Group’s businesses. Jardines is not afraid thousands of employees through the to go against the flow and take calculated provision of resources, training and risks, but this is always balanced by encouragement across different and prudent financial management.

A Market Leader Today

Jardine Matheson has established a portfolio of focussed companies that are at the forefront of their chosen markets; each well financed and possessing sound growth prospects. Henry Keswick Chairman Jardine Matheson Holdings Limited

33 A Market Leader Today

Today, Jardines comprises a dynamic group of companies with extensive operations across Asia, and in some cases the world. The Group’s strategy is to build its businesses into market leaders, each with the support of Jardines’ extensive knowledge of the region and its long-standing relationships. This way of doing business still reflects the core values and characteristics of the founders of the Firm.

Jardines’ business interests include: Jardine Pacific, Jardine Motors Group, Hongkong Land, Dairy Farm, Mandarin Oriental, Jardine Cycle & Carriage – through which the Group’s interest in Astra is held – and Jardine Lloyd Thompson. The Group also has strategic interests in other entities, such as a 20% stake in investment bank, Rothschild.

Within Jardine Pacific we see a number of Jardines’ long-standing businesses, such as Jardine Engineering Corporation and Jardine Shipping Services. There are also more contemporary interests that are in step with Asia’s consumers, such as Pizza Hut restaurants in Hong Kong and Taiwan and Jardine OneSolution’s IT services. Other Asian interests include Jardine Aviation Services, Jardine Schindler and Gammon. Jardine Motors is engaged in the distribution, sales and service of motor vehicles, with an emphasis on luxury marques. Through Zung Fu it has held the Mercedes-Benz franchise in Hong Kong for over 50 years achieving the highest market penetration in the world for the brand. Zung Fu is also actively developing the market in Southern China with a chain of Mercedes-Benz dealerships. In the United Kingdom, Jardine Motors is one of the country’s largest independent dealership groups with a portfolio of specialist franchises that include Aston Martin, Audi, Bentley, BMW, Ferrari, Jaguar, Maserati, Mercedes-Benz and Porsche.

Hongkong Land, where the Hongkong Land’s strategy of Group’s relationship stems broadening its commercial back to 1889 when it was business regionally in founded by Sir Paul Chater recent years has led to the and William Keswick, is a development of significant leading property investment, properties in Singapore and management and development further interests in Vietnam. group. Since its formation, Its hallmark of quality is Hongkong Land has been a also being recognized in the major player in Hong Kong residential market, and its where it has developed a developments have been unique portfolio of some five well received in Hong Kong, million sq. ft of prime office mainland China, Macau and and retail space. Its buildings Singapore, where it also owns have a reputation for quality, a 77% stake in Singapore both in terms of physical fabric residential developer MCL and management. Hongkong Land. Land is a listed company in which the Group currently holds an interest of 47%.

35 A Market Leader Today

can trace back its origins to the nineteenth It has a significant presence in Hong Kong, Taiwan, Malaysia, century when Scottish surgeon Sir Patrick Manson embarked on Singapore and Indonesia, and a growing presence in mainland a venture to improve the health of the Hong Kong community. China, India and Vietnam. Dairy Farm operates supermarkets He began breeding cattle to ensure a daily supply of disease- under the banners of Wellcome, Jasons, Shop’n’Save, Cold free fresh milk at an affordable price. The company expanded Storage and Hero; Giant hypermarkets; health and beauty stores into the production of dairy products and ice, and then into food under Mannings and Guardian; as well as 7-Eleven convenience retailing. Acquired by Hongkong Land in 1972 and relisted in stores. It also has a successful restaurant affiliate, Maxim’s, in 1986, the Group’s shareholding in Dairy Farm is now 78%. In the Hong Kong and mainland China and IKEA furniture stores in Hong early twenty-first century Dairy Farm has established itself as one Kong and Taiwan. of the region’s leading retail chains with the goal of satisfying the needs of Asian consumers for wholesome fresh food, and consumer and durable goods.

Jardine Lloyd Thompson is a subsequent merger with leading London-based risk Lloyd Thompson in 1997 and management adviser and a series of acquisitions have insurance and reinsurance made it one of the largest broker. Jardines has operated European headquartered insurance broking businesses firms of its type. Jardines now in Asia from its earliest days – has a 31% shareholding. In the Canton Insurance Company recent years Jardine Lloyd was first established in 1836. Thompson has also expanded Jardine Insurance Brokers into employee benefit was formed in 1972, and administration services and was listed on the London related consultancy advice. Stock Exchange in 1991. The The Mandarin hotel in Hong Kong took on the mantle as one of Asia’s leading hotels soon after opening in 1963. Later in 1973, as part of the Hongkong Land group’s hotel interests, it was joined by world-renowned The Oriental hotel in Bangkok, and the Mandarin Oriental Hotel Group was born. Listed in 1987, it is now 74% owned by Jardines. In the late 1990s, Mandarin Oriental began its current international expansion programme with the goal of reaching 10,000 rooms.

Mandarin Oriental’s hotels in operation or under development now include London, Paris, Geneva, Munich, New York, Washington D.C., Boston, Dallas, as well as Beijing, Tokyo, Taipei, Hong Kong, Singapore and Jakarta in its Asian heartland. Mandarin Oriental is being recognized today as one of the leading global luxury hotel groups, providing exceptional guest satisfaction in each of its properties.

Jardines first acquired an Singapore since 1926, became vehicle and motorcycle interest in Cycle & Carriage inextricably linked to the markets. It also has major in 1992. Over time the evolution of the motorcar. interests in agribusiness, heavy shareholding was increased Jardine Cycle & Carriage is now equipment, mining contracting, until it became a subsidiary in a leading Singapore-listed financial services, information 2002, and is now 64% held. Its holding company with motor technology and infrastructure. name was changed to Jardine trading interests in Singapore, Cycle & Carriage in 2003 in Indonesia and Malaysia recognition of the regional role and an interest of just over it played for the Group. Cycle & 50% in Astra International, Carriage was founded by the one of Indonesia’s finest Chua brothers in Kuala Lumpur conglomerates. as a general store in 1899, but they soon recognized Listed in Indonesia, Astra the potential of transport as is the largest independent a business opportunity. The automotive group in Southeast success of Cycle & Carriage, Asia with a significant share which has been based in of the Indonesian motor

37 The Company opens its office in JM & Co JM & Co JM & Co JEC installs its first World War II commences JM & Co listed on JM & Co moves Shanghai where it purchases Lot inaugurates pioneers opens the lift in mainland China and many staff members the Hong Kong head office No. 1. Further offices follow in steamer the first first spinning at Tientsin, and first leave to fight in the Stock Exchange. from Jardine Canton, Amoy, and Foochow. cargo line sugar mill in and weaving Schindler lifts in Hong forces. The British House to from Calcutta Hong Kong, factory in Kong in 1931. government requisitions Connaught to Far East. and helps Hong Kong, all the Firm’s ships. In Centre establish laying the 1941 many staff in Hong (renamed Hong Kong foundation for Kong and Shanghai Jardine House Tramways. a successful interned or become in 1989). industry for Prisoners of War. Jardine, Matheson & Co (JM & Co) is JM & Co opens Woosung Railroad the Territory. British & Chinese Corporation JM & Co is one of the first companies to resume business JM & Co inherits the title The Dairy Farm Company Dairy Farm acquires the Wellcome grocery chain in Hong formed by Scots William Jardine and at Shanghai. (‘BCC’) is legally formed by JM & Co in Hong Kong and Shanghai after the war, and has also EWO – ‘the state of happy established with 80 head and HSBC for joint investment in Kong and develops it into a leading supermarket chain. James Matheson on 1st July in Canton. BCC signs a contract for the construction of re-established business in Japan by the summer of 1947. harmony’ – from the hong JM & Co opens office in Yokohama. of cattle. China’s railway system. merchant Howqua’s firm. the Kowloon to Canton railway.

1832 1835 1841 1842 1844 1848 1855 1859 1864 1876 1879 1881 1884 1886 1889 1897 1898 1899 1906 1907 1923 1930 – 1931 1939 – 1945 1947 1954 1957 1961 1963 1964 1970 1973 1974

JM & Co purchases first plots of land in Hong Kong at The Mandarin hotel opens in JM & Co acquires Theo H Davies in Hawaii East Point for £565. Hong Kong. (remaining interests sold in 2001). Sir Paul Chater, in partnership with Following the acquisition of The Oriental hotel JM & Co, forms Hongkong Land. Indo-China Steam Navigation Company in Bangkok, the Mandarin Oriental Hotel formed by Jardines. JM & Co becomes a Old Jardine House Group is formed. limited company. in Pedder Street is replaced by new Jardine House. JM & Co The Firm takes The Firm’s London establishes the The Jardine Engineering Corporation JM & Co is forced to PT Astra delivery of its operations at first ice-making (‘JEC’) is formed to play a large part close its operations in International Jardine Fleming first steamship 3 Lombard Street JM & Co moves factory in Hong The Chua brothers found in providing machinery, equipment mainland China and commences & Co Ltd, Asia’s Jardine, staying are renamed main office from Kong, later to be Cycle & Carriage in Kuala and services for the growing leaves the country business as a first home-grown ahead of the Matheson & Co on East Point to Central amalgamated Lumpur, and subsequently infrastructure developments in along with all other trading company merchant bank, competition. 31st December 1847. Hong Kong. with Dairy Farm. move to Singapore in 1926. Hong Kong and mainland China. foreign firms. in Indonesia. opens for business.

JARDINE MATHESON 175TH ANNIVERSARY TIMELINE

JM & Co moves JM & Co returns to In the face of severe Jardine Pacific (‘JP’) Jardine Insurance JSH acquires Mandarin Oriental JMH agrees to A Hongkong MINDSET, a mental health Hongkong Land acquires a 77% Hong Kong mainland China after economic challenges formed to bring Brokers floated a 16% stake in purchases the exchange its 50% Land joint charity spearheaded by shareholding in MCL Land, a operations offices 25 years and opens JM & Co and together JMH’s trading on the London Cycle & Carriage, Hyde Park hotel interest in Jardine venture begins the Jardine Ambassadors, Singapore-listed residential from Jardine House to representative office Hongkong Land take and services operations Stock Exchange a Singapore- in London. Fleming for a developing established in Hong property developer as part of World Trade Centre. in Beijing, followed steps to reduce debt in a coherent structure and JMH’s listed group shareholding in Central Park, Kong as a focus of Group the development of its JSH acquires a JM & Co makes by offices in Shanghai and cut costs. and create larger interest reduced with interests in its joint venture a residential philanthropic activities. residential capabilities. 20% stake in Tata major investment in and Guangzhou. business units. to 63%. motor vehicles partner, Robert complex in Industries in India Partial offer for Cycle JMH produces a record Transport Trading Inc and property. Fleming, which Beijing. and an 8% stake & Carriage increases underlying profit in 2006 of in Saudi Arabia gives the Group in Asia Commercial JSH’s interest to over over US$500 million. (sold in 1995). a total holding JM & Co opens first 7-Eleven Bank in Vietnam. 50%, and the company convenience store in Hong Kong. of 18%. Dairy Farm acquires two Giant subsequently changes its Hongkong Land completes Exchange Square and hypermarkets in Malaysia that name to Jardine Cycle & pays its first substantive dividend in three years. form the foundation for its strong Carriage Limited (‘JC&C’). regional expansion.

1975 1976 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1990 1991 1992 1994 1996 1997 1998 1999 2000 2001 2002 2005 2006 2007

Maxim’s Caterers establishes Beijing Air Catering Company Ltd as the first Cycle & Carriage acquires initial foreign joint venture in mainland Hongkong Land 31% stake in Astra International. China after the start of the open demerges and lists door policy. Jardine Schindler follows Dairy Farm and Mandarin Oriental acquires The Mandarin Oriental. Rafael Group, gaining important Jardines marks its with first industrial joint venture. JMH and four other listed Group Jardine Strategic footholds in Europe and North companies arrange primary share Holdings Limited America as a first step in a major 175th anniversary listings on the London Stock Exchange, (‘JSH’) formed to expansion programme. Jardine Matheson Holdings in addition to their Hong Kong listings. Jardine Insurance Brokers merges JM & Co acquires acquire all JMH’s and JSH holds a 53% interest in JMH, 47% Limited (‘JMH’) formed as the The Hong Kong listings withdrawn in with Lloyd Thompson to form Hongkong Land develops One Gammon Hong JM & Co celebrates its 150th Hongkong Land’s JSH acquires a 20% in Hongkong Land, 78% in Dairy Farm, Group’s new holding company the mid-1990s and the Asian share Jardine Lloyd Thompson, with JMH Raffles Link as a prelude to a series Kong Limited anniversary and establishes the remaining interests shareholding in 74% in Mandarin Oriental, 20% in incorporated in Bermuda. trading moves to Singapore. holding 34% of the merged entity. of major investments in Singapore. (50% sold in 1983) Jardine Foundation educational in Hongkong Land, Rothschilds Continuation, Rothschilds Continuation and 64% in and 75% of Zung trust and the Jardine Ambassadors Decision to withdraw from Dairy Farm, Mandarin Pizza Hut franchise in Hong Astra lists on the Jakarta and Surabaya Jardine Fleming’s funds under Hongkong Land acquires first The Group’s interest in Robert rekindling a relationship JC&C, which itself holds just over 50% Fu Co Ltd. programme. ship owning activities. Oriental and JMH. Kong taken by Jardines. stock exchanges. management reach US$22 billion. property interest in Beijing. Fleming sold for US$1.2 billion. that began in 1838. of Astra. JMH owns 80% of JSH. The Company opens its office in JM & Co JM & Co JM & Co JEC installs its first World War II commences JM & Co listed on JM & Co moves Shanghai where it purchases Lot inaugurates pioneers opens the lift in mainland China and many staff members the Hong Kong head office No. 1. Further offices follow in steamer the first first spinning at Tientsin, and first leave to fight in the Stock Exchange. from Jardine Canton, Amoy, and Foochow. cargo line sugar mill in and weaving Schindler lifts in Hong forces. The British House to from Calcutta Hong Kong, factory in Kong in 1931. government requisitions Connaught to Far East. and helps Hong Kong, all the Firm’s ships. In Centre establish laying the 1941 many staff in Hong (renamed Hong Kong foundation for Kong and Shanghai Jardine House Tramways. a successful interned or become in 1989). industry for Prisoners of War. Jardine, Matheson & Co (JM & Co) is JM & Co opens Woosung Railroad the Territory. British & Chinese Corporation JM & Co is one of the first companies to resume business JM & Co inherits the title The Dairy Farm Company Dairy Farm acquires the Wellcome grocery chain in Hong formed by Scots William Jardine and at Shanghai. (‘BCC’) is legally formed by JM & Co in Hong Kong and Shanghai after the war, and has also EWO – ‘the state of happy established with 80 head and HSBC for joint investment in Kong and develops it into a leading supermarket chain. James Matheson on 1st July in Canton. BCC signs a contract for the construction of re-established business in Japan by the summer of 1947. harmony’ – from the hong JM & Co opens office in Yokohama. of cattle. China’s railway system. merchant Howqua’s firm. the Kowloon to Canton railway.

1832 1835 1841 1842 1844 1848 1855 1859 1864 1876 1879 1881 1884 1886 1889 1897 1898 1899 1906 1907 1923 1930 – 1931 1939 – 1945 1947 1954 1957 1961 1963 1964 1970 1973 1974

JARDINE MATHESON 175TH ANNIVERSARY TIMELINE

1975 1976 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1990 1991 1992 1994 1996 1997 1998 1999 2000 2001 2002 2005 2006 2007

1832 1835 1841 1842 1844 1848 1855 1859 1864 1876 1879 1881 1884 1886 1889 1897 1898 1899 1906 1907 1923 1930 – 1931 1939 – 1945 1947 1954 1957 1961 1963 1964 1970 1973 1974

JARDINE MATHESON 175TH ANNIVERSARY TIMELINE

1975 1976 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1990 1991 1992 1994 1996 1997 1998 1999 2000 2001 2002 2005 2006 2007

This Timeline provides an insight into some of the more significant events in the Firm’s development as it grew from an Agency House in Canton in 1832 to being one of the most dynamic and respected groups in Asia. At Jardines, Performance counts. So does having The Right People. People with Energy and an Enterprising spirit. People who can actively embrace change, put plans into action and in turn drive growth. Jardine Matheson Holdings Limited Jardine Matheson Offices Jardine House, 33-35 Reid Street, Hamilton, Bermuda

Bermuda 4th Floor, Jardine House Telephone (1 441) 292 0515 Group Businesses Jardine Matheson 33-35 Reid Street Facsimile (1 441) 292 4072 International Services Ltd P.O. Box HM 1068 C.H. Wilken Jardine Matheson Ltd 48th Floor, Jardine House Telephone (852) 2843 8288 Hamilton HM EX G.P.O. Box 70 Facsimile (852) 2845 9005 Hong Kong Email [email protected] Hong Kong SAR 48th Floor, Jardine House Telephone (852) 2843 8288 Website www.jardines.com Jardine Matheson Ltd G.P.O. Box 70 Facsimile (852) 2845 9005 A.J.L. Nightingale Hong Kong A.J.L. Nightingale

Matheson & Co., Ltd 3 Lombard Street Telephone (44 20) 7816 8100 London EC3V 9AQ Facsimile (44 20) 7623 5024 Indonesia Level 16, World Trade Centre Telephone (62 21) 522 8981 United Kingdom Email [email protected] Jardine Matheson Ltd Jalan Jendral Sudirman Kav. Facsimile (62 21) 522 8983 Website www.matheson.co.uk (Representative Office) 29-31 Jakarta 12920 Leonard van Hien Lord Leach of Fairford

Jardine Pacific Ltd 25th Floor, Devon House Telephone (852) 2579 2888 Mainland China Rm 528, 5/F, Telephone (8610) 6505 2801 Taikoo Place Facsimile (852) 2856 9863 Jardine Matheson (China) Ltd China World Tower 1 Facsimile (8610) 6505 2805 979 King’s Road Email [email protected] (Liaison Office) China World Trade Centre Adam C.N. Williams Quarry Bay Adam Keswick No.1 Jianguomenwai Avenue Hong Kong Chaoyang District, Beijing 100004 Jardine Motors Group Ltd 31st Floor, The Lee Gardens Telephone (852) 2895 7218 33 Hysan Avenue Facsimile (852) 2894 9956 Malaysia Tingkat 4, Bangunan Setia 1 Telephone (603) 2094 2168 G.P.O. Box 209 Email [email protected] Jardine Matheson (Malaysia) Sdn Bhd 15 Lorong Dungun Facsimile (603) 2092 2168 Hong Kong Adam Keswick Bukit Damansara Dato’ Khalid bin 50490 Kuala Lumpur Haji Ismail Jardine Lloyd Thompson Group plc 6 Crutched Friars Telephone (44 20) 7528 4444 London EC3N 2PH Facsimile (44 20) 7528 4185 United Kingdom Email [email protected] Netherlands Diepenbrockstraat 19 Telephone (31 20) 470 0258 Website www.jltgroup.com Jardine Matheson Europe B.V. 1077 VX Amsterdam Facsimile (31 20) 470 0323 Dominic Burke James Reid

Hongkong Land Ltd 8th Floor Telephone (852) 2842 8428 One Exchange Square Facsimile (852) 2845 9226 Philippines 25/F Philamlife Tower Telephone (632) 884 5673 Hong Kong Email [email protected] Jardine Matheson Ltd 8767 Paseo de Roxas Facsimile (632) 885 7078 Website www.hkland.com (Representative Office) 1226 Makati City A.B. Colayco Y.K. Pang

Singapore 239 Alexandra Road, Telephone (65) 6220 4254 Dairy Farm Management Services Ltd 7th Floor, Devon House Telephone (852) 2299 1888 3rd Floor Taikoo Place Facsimile (852) 2299 4888 Jardine Matheson (Singapore) Ltd Facsimile (65) 6323 0694 Singapore 159930 979 King’s Road Email groupcomm@ Y.C. Boon G.P.O. Box 28 dairy-farm.com.hk Hong Kong Website www.dairyfarmgroup.com Taiwan 14th Floor, Telephone (8862) 2395 4605 Michael Kok Jardine, Matheson & Co., Ltd World Trade Building Facsimile (8862) 2394 5625 50 Hsin Sheng South Road Liang Chang Mandarin Oriental Hotel Group 7th Floor Telephone (852) 2895 9288 Section 1, Taipei 10059 International Ltd 281 Gloucester Road Facsimile (852) 2837 3500 Causeway Bay Email [email protected] Hong Kong Website www.mandarinoriental.com Thailand 21-03, 21st Floor, Telephone (662) 254 0675 Edouard Ettedgui Jardine Matheson (Thailand) Ltd Times Square Building Facsimile (662) 254 0677 246 Sukhumvit Road, Dr Pisit Leeahtam Jardine Cycle & Carriage Ltd 239 Alexandra Road Telephone (65) 6473 3122 KIong Toey Singapore 159930 Facsimile (65) 6475 7088 Bangkok 10110 Email corporate.affairs@ jcclgroup.com Website www.jcclgroup.com United Kingdom 3 Lombard Street Telephone (44 20) 7816 8100 Ben Keswick Matheson & Co., Ltd London EC3V 9AQ Facsimile (44 20) 7623 5024 Lord Leach of Fairford PT Astra International Tbk Jl. Gaya Motor Raya No. 8, Telephone (62 21) 652 2555 Sunter II, Jakarta 14330 Facsimile (62 21) 651 2058 Vietnam 8th Floor, Jardine House Telephone (848) 8222 340 Indonesia Email [email protected] Jardine Matheson Ltd 58 Dong Khoi Street Facsimile (848) 8230 030 Website www.astra.co.id District 1, Ho Chi Minh City Alain Cany Michael Ruslim

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175 Years of Looking to The Future