Dairy Farm's Health & Beauty Business
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2012 vol.3 Thistle The Magazine of Jardine Matheson PIP Awards 2013 Look for Inspiring Talent > page 3 Gammon Wins Science Park Contract > page 11 Prestigious Accolades for Marina Bay Financial Centre > page 21 Dairy Farm’s Health & Beauty Business – Going Strong Across The Region Making it Happen In our annual Pride in Performance (PIP) Awards Programme we are looking for teams that have been making things happen and delivering great results. Through a new category, ‘Inspiring Talent’, we also want to hear how talented people have been energized to reach for and achieve new performance heights – through skills training, through sharing values, or through internal marketing and communications. In uncertain and difficult markets, the Group performed satisfactorily in the half-yearly results for the first six months of 2012 and expects to maintain this momentum over the full year. While some of our businesses recorded mixed results, others like Dairy Farm produced further earnings growth. A major contributor was Dairy Farm’s Health & Beauty sector, the subject of our feature on pages 14-19. Five years ago the Health & Beauty sector represented 23% of total Dairy Farm Group profits. Today its excellent results have taken that figure to 30%. This has been achieved with clear market positioning, successful innovations and customer focus, all supported by passionate and professional teams of employees – inspired to make things happen. Ben Keswick At the Centre 2 PIP Awards 2013 Look for Inspiring Talent Group Businesses Performing Well Mandarin Oriental Hotel Group Reaches Further into Mainland China … Leadership 8 Dairy Farm Enters Philippines Retail Market New Business for Jardine Aviation Services IKEA Taiwan Optimizes Marketing to Launch New Collection 8 New Business Focus for Jardine Shipping Services … Feature 14 Dairy Farm’s Health & Beauty Business – Going Strong Across CONTENTS The Region 19 Performance 20 Prestigious Accolades for Marina Bay Financial Centre Wellcome Scores High as Hong Kong’s ‘Most Liked’ Supermarket 24 Further Praise for Pizza Hut Hong Kong … Spirit 26 New Jardine Ambassadors Take Up the Baton as Mental Health Advocates Health in Mind Programme Marks Tenth Anniversary MINDSET Celebrates Tenth Anniversary Maxim’s Expands Surplus Bread Donations … People 36 Decision Making Approach for Group Finance Conference Royal Diamond Jubilee Celebrations Graduation for Cycle & Carriage Leaders Enterprise at Work … Astra Honda Motor – 37 Parts Division PIP Awards 2013 Look for Inspiring Talent Innovative Ideas Customer Superior Marketing Engagement Growth Excellence Inspiring Talent AT THE CENTRE 3 PIP Awards 2013 Look for Inspiring Talent The Pride in Performance (PIP) Awards teams to make things happen. In from their competitors in achieving At the Centre Programme 2013 will be looking for other words, people are not just a growth over the past three years. ‘Inspiring Talent’ with the addition of part of the story, they are the key this as a new category. The other four ingredient,” said Jardine Matheson In another new departure, each entry categories have also been revised to Group Managing Director Ben will have to be accompanied by a short reflect the current focus of the PIP Keswick in a video introduction to the video clip, which ‘sells’ the submission Programme, which is now entering 2013 PIP Awards. and demonstrates the passion its 12th year. They will be under behind it. the headings of ‘Innovative Ideas’, In the other categories, ‘Innovative ‘Marketing Excellence’, ‘Customer Ideas’ involves the adoption of ideas, The deadline for entries is Engagement’ and ‘Superior Growth’. processes, technology, products 11th January 2013. or business models that are either The new ‘Inspiring Talent’ category new or new in their application; “Recognizing outstanding seeks to highlight and recognize ‘Marketing Excellence’ seeks out performances is at the core of PIP,” initiatives undertaken by Group exciting and effective marketing said Mr Keswick, “so, if you and operating companies to energize strategies or initiatives that your team have been making things people within – as teams, units or have led to commercial success; happen and delivering great results, workforce – as they reach for and ‘Customer Engagement’ celebrates you should enter. Pick your category achieve new performance heights. how businesses have excelled in and prepare your submission. We look understanding and engaging their forward to reading your entry and “We are looking for cases that are all customers; and ‘Superior Growth’ is watching your video.” about how you have inspired your aimed at teams that have stood out Group Posts Satisfactory Half-Yearly Results In the challenging circumstances earnings. The group’s engineering rental levels were underpinned by a of uncertain and difficult markets, and construction interests enjoyed a lack of new supply, as well as growth the Jardine Matheson Group posted good first half, but this was countered in Singapore. This improvement satisfactory half-yearly results for the by the poor trading conditions facing was more than offset, however, by first six months of 2012. its transport services operations. Its lower earnings from residential restaurant and IT operations also saw developments. Dairy Farm produced Underlying profit for the first six declines in earnings after a strong further earnings growth in the first months of 2012 was US$714 million, 2011. Jardine Motors experienced half of 2012 while expanding its 1% below the same period in 2011. a disappointing first half as fierce store network and investing in new Underlying earnings per share were competition and oversupply led to markets. Mandarin Oriental’s Asian 2% lower at US$1.97. The revenue sustained pressure on margins in hotels continued to enjoy a good of the Group, including 100% of mainland China. New business gains trading environment and improved the revenue of associates and joint and disciplined cost control enabled performances were recorded in most ventures, was US$30.3 billion, Jardine Lloyd Thompson to produce locations. Jardine Cycle & Carriage compared to US$27.4 billion in the another satisfactory performance for achieved an improved result as Astra first half of 2011. An increased interim the first half of 2012. performed well in the first half of 2012. dividend of US¢35.00 per share, up 6%, was declared. Hongkong Land’s operating profit from “The first-half results were satisfactory its commercial properties rose in the and we expect to maintain our Jardine Pacific recorded mixed results first six months of 2012. There was a performance over the full year,” said from its businesses in the first half particularly good contribution from Group Chairman Sir Henry Keswick. of 2012 leading to a reduction in its prime Hong Kong portfolio, where Thistle vol.3 2012 Group Businesses Gala Dinner Commemorates MINDSET’s Performing Well Tenth Anniversary Jardine Matheson Group businesses Jardine Matheson Group Managing Director Ben Keswick toasts guests at are performing well in resilient the gala dinner held to mark MINDSET’s tenth anniversary. markets despite the current uncertain times, Ben Keswick told senior The event, which was held at Maxim’s Palace, City Hall, Hong Kong, included management in Hong Kong in his first performances by service users and student participants in the Health in address to them since assuming his Mind programme. role as Group Managing Director. Mr Keswick said that having visited Group interests across the region in the Philippines, Indonesia, mainland China and many units in Hong Kong during the previous four months, he was optimistic about the key markets Meeting with Chinese Politburo Officials of Greater China and Southeast Asia. Jardine Matheson Group Chairman Sir Henry Keswick and Matheson & Co “Ninety-five percent of Group business Director Lord Powell of Bayswater both attended a China-Britain Business comes from these areas and while Council dinner in honour of Politburo Standing Committee member they are not unaffected, they continue Li Changchun during his official visit to the United Kingdom. to show resilience,” he said. Mr Keswick told his audience that growth strategy would seek to create value over the long term. The Group would pursue initiatives to create a foundation for future profit growth. “Key to our success are our people and our strong businesses with their sound balance sheets and robust market positions,” said Mr Keswick. “We must be adaptable too and ready to move swiftly to react to any deterioration and yet take advantage of opportunities. I am confident that we have an excellent base on which to Right: Lord Powell with Li Changchun, Sir Andrew Cahn, former Head of UK Trade and Investment, build for the future.” and Liu Xiaoming, China’s Ambassador to the UK. 5 Group Chairman Hosts Dinner for Beijing Visitors Jardine Matheson Group Chairman Sir At the Centre Henry Keswick (centre) with Directors Simon Keswick and Lord Leach of Fairford together with a delegation from Beijing led by the Vice Mayor of Dongcheng District, Chen Zhichang, at a dinner hosted by Sir Henry at Mandarin Oriental Hyde Park, London. Dongcheng District is the location of Hongkong Land’s new integrated luxury retail development at Wangfujing in the heart of China’s capital city. Group Deputy Managing Director Addresses Chongqing Mayor’s Advisory Council Jardine Matheson Group Deputy some 40 global business leaders from These included “helping them develop Managing Director Adam Keswick was Fortune 500