group digital world innovation in a perspective on chinaheralds 2016 volume 1 2016 student advocates...

Taking the Lead

Midnight Gun Heralds 2016

VOLUME 1 2016

Student Advocates Embrace Mental Health

Innovation in a Digital WorldGroup

Perspective on China

www.jardines.com

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China PerspectiveIn an in-depth look at China’s prospects, the Group examines how it can make the most of the opportunities for its businesses in this economic powerhouse.Page 08

Contents

The Mindset Challenge Supports Arts ProjectPage 27

China Powerhouse Fuels Opportunities for Group Businesses Page 08

Firsthand InsightPage 07

Gammon Keeps CarbonCare® Label Page 23

From the Centre 03Warm Welcome from Group Chairman for Chinese PresidentScottish Theme as Midnight Gun Heralds 2016

Perspective 08China Powerhouse Fuels Opportunities for Group Businesses

Taking the Lead 14Hongkong Land Turns Dreams into RealitySiam City Cement Lays Foundations for Future Growth

Recognizing Performance 22Service and Courtesy Pays Off for Group CompaniesGammon Keeps CarbonCare® Label

Showing Spirit 26Health in Mind Advocates Begin Learning ProcessBonding in Beijing

Developing Talent 32Conferences Reflect Group SynergyJLT Global Talent Exchange Broadens Horizons for High Performers

Enterprising Matters 36PAMA Invests in Human Capital

Siam City Cement Lays Foundations for Future GrowthPage 16

Thistle Volume 1 | 2016 01

Taking the Long-Term View

The Group’s involvement already covers many

aspects of life in China with our businesses

focused on providing premium products and

services.

Managing DirectorBen Keswick

In a world where short-term gain is often the name of the game, it is important to reflect on the benefits of taking a longer-term view. The Jardine Matheson Group has never been afraid to take risks, but this has always been balanced by prudent financial management and a determination to see a job through. A good example is our increased exposure in mainland China where the Group’s investments now exceed US$8 billion.

The economy in China is currently undergoing a major transition, GDP growth has slowed and the stock market has had a shaky start to 2016. As the world’s largest trader and with an economy that is contributing 25% to global GDP growth, this is having a significant impact worldwide. However, while we accept that China may be in for a tough few years, in the longer term we still see tremendous opportunities ahead for the Group as the economy emerges from being export led to one driven by internal consumption.

In particular, we are excited by the increasing wealth in the country and the growth of the middle class, both of which are playing to the strengths of our businesses. The Group’s involvement already covers many aspects of life in China with our businesses focused on providing premium products and services to meet the aspirations of the high to middle income group. In addition, we are well positioned to explore new opportunities in areas such as healthcare and education. We recognize that the slowdown will affect the level of growth in the short term, but we intend to be there for the long haul, and the benefits that will ultimately bring.

The career development of our people is another matter on which the Group tends to take a long-term view and I am delighted that in the senior management changes, which we have recently announced, all of the executives have been appointed from within the Group. This is testament not only to their personal achievements, but also to the depth of talent that exists in the Group. I wish them all every success in their new posts.

As we enter the Chinese New Year of the Monkey, I also wish everyone good fortune in the months ahead.

Ben Keswick

02

MD’s Desk

Jardine Matheson Group Chairman Sir Henry Keswick extended a warm welcome to Chinese President Xi Jinping on his arrival at Mandarin Oriental Hyde Park, London. The President accompanied by his wife, First Lady Peng Liyuan, spent a night in the hotel on the eve of his four-day State Visit to the United Kingdom. The delegation continued to stay in the hotel for the duration of the visit.

Following their stay at Mandarin Oriental Hyde Park, President Xi and Madame Peng departed the next morning for Buckingham Palace and the start of the official programme for the State Visit, the first to the UK by a Chinese President for a decade.

During the visit, more than £30 billion (US$43.5 billion) worth of trade and investment deals were completed. Numerous commercial deals spanning a range of sectors, which included the

creative industries, retail, energy, health and technology, financial services, aerospace and education were signed, providing an opportunity for British and Chinese businesses to forge stronger links in what is viewed by both governments as a global partnership for the 21st century.

The visit heralded what has been described as a new ‘golden era’ in UK-China relations and a firm belief that the vast size and potential of China’s economy will continue to drive strong growth, even as China is undergoing enormous transformation. This is reflected in China’s growing importance to the Jardine Matheson Group, which has over US$8 billion invested in the country, and sees further tremendous opportunities for Group businesses in the long term, especially as GDP per capita rises and spending power increases.

Warm Welcome from Group Chairman for

Chinese President


From the Centre

Group-wide Management Changes

Adam Keswick Y K Pang James Riley John Witt

Robert Wong Simon Dixon Adrian Teng Craig Beattie S C Chiew

A number of Jardine Matheson Group-wide management changes are taking place during 2016, which reflect the Group’s strategic direction and the process of evolution currently underway in a number of its businesses.

On 31st July 2016, Adam Keswick will move to the United Kingdom where he will become Chairman of Matheson & Co and in due course take on additional responsibilities in the Group’s business interests in the UK. He will maintain his existing directorships in the Group’s principal listed companies and be actively involved with the Group’s businesses.

Mr Keswick will be replaced as Group Deputy Managing Director on 1st August 2016 by Y K Pang, who will move across from his current role as Chief Executive of Hongkong Land. Mr Pang will, in particular, assume oversight of Jardine Pacific and Jardine Motors, and responsibility for overseeing the strategic development of the Group’s interests in mainland China, where Group investments now total over US$8 billion. Mr Pang will also join the boards of Jardine Strategic, Dairy Farm and Mandarin Oriental, while remaining a director of Hongkong Land.

Prior to the above changes, James Riley will move from his current position as Group Finance Director to Mandarin Oriental Hotel Group on 31st March 2016, where he will be appointed as Chief Executive to

replace Edouard Ettedgui who is stepping down. Mr Ettedgui will continue as a non-executive director. Mr Riley will be succeeded on the Board by John Witt, who is currently Chief Financial Officer of Hongkong Land. Mr Witt will also join the board of Dairy Farm.

Replacing Y K Pang as Chief Executive of Hongkong Land on 1st August 2016 will be Robert Wong, who has been an Executive Director of management company Hongkong Land Limited since 1996. Simon Dixon, who is currently Finance Director of Astra, will move to Hongkong Land as Chief Financial Officer on 28th April 2016.

Group Treasurer Adrian Teng will move to Jardine Cycle & Carriage on 1st April 2016 as Group Finance Director where he will have a particular focus on Jardine Cycle & Carriage’s growing non-Astra business interests. He will be replaced by Craig Beattie, who is currently Finance Director at Jardine Motors in the UK.

S C Chiew, who has been the Group Finance Director of Jardine Cycle & Carriage since 2006, will become Finance Director of Astra in place of Simon Dixon. John Witt will also be appointed a commissioner and an executive committee member of Astra, while Adrian Teng will become a commissioner. These appointments are subject to shareholder approval at Astra’s annual general meeting, which is due to be held on 27th April 2016.

04

From the Centre

Asia Pacific Regional Board Meets in Ho Chi Minh City

Front row, sixth left: Jardine Matheson Group Chairman Sir Henry Keswick

with Directors, Country Chairmen and Chief Executives of the Group’s main listed companies at the Asia Pacific Regional Board meeting, which was

held in Ho Chi Minh City, Vietnam.

Seated left: China Construction Bank Chairman & Executive Director Wang

Hongzhang and Jardine Matheson Group Chairman Sir Henry Keswick at the signing

of the strategic co-operation agreement.

For the first time, the Jardine Matheson Group’s Asia Pacific Regional Board (APRB) meeting was held in Ho Chi Minh City, Vietnam.

Directors, Country Chairmen and Chief Executives of the Group’s main listed companies met to discuss performance over the past year and consider the strategic direction of the Group. Guest speakers included Dragon Capital Chief Executive Officer Dominic Scriven who spoke about the state of the Vietnamese economy and the general optimism currently surrounding it; Chairman of the Yangon Heritage Trust Dr Thant Myint-U, who addressed the gathering on Burmese domestic politics and international relations in the aftermath of the 2015 elections; and McKinsey Senior Adviser Nick Arnold, who gave a presentation on the world of disruptive technology.

Strategic Co-operation with China Construction BankThe Jardine Matheson Group and China Construction Bank (CCB) have signed a strategic co-operation agreement in London to reflect their growing relationship.

In early 2014 CCB’s Head Office in Beijing classified the Jardine Matheson Group as its ‘second non-Chinese company’ and a global strategic client. This followed an 18-month engagement with CCB to identify partnership opportunities. CCB has also been involved with finance arrangements for a number of Group companies.


Indonesian Dignitaries Visit Matheson & CoThe former President of Indonesia, His Excellency Dr H Susilo Bambang Yudhoyono, accompanied by the Indonesian Ambassador to the United Kingdom, His Excellency Teuku Mohammad Hamzah Thayeb, have paid a visit to Matheson & Co in Lombard Street where they were hosted to lunch by Jardine Matheson Group Chairman Sir Henry Keswick and Matheson & Co Directors Lord Leach and Lord Powell.

The former Indonesian President was in London to speak at The 7th World Chinese Economic Summit.

Scottish Theme as Midnight Gun Heralds 2016There was a particularly Scottish theme to the traditional Jardines’ Midnight Gun Salute to the New Year, which was fired by Mrs Clare Keswick, wife of Jardine Matheson Group Deputy Managing Director Adam Keswick. The gun firing party was led by pipers and escorted by a guard of honour of young executives dressed as Scottish Highland warriors, paying respect to the Group’s Scottish heritage and as a tribute to Mr and Mrs Keswick. Mr Keswick will return to the United Kingdom at the end of July 2016 to take up the position of Chairman of London-based Group company, Matheson & Co.

Lord Sassoon Plays Prominent Role in Chinese State VisitJardine Matheson Group Director Lord Sassoon, in his role as Chairman of the China-Britain Business Council (CBBC), played a prominent role in Chinese President Xi Jinping’s State Visit to the United Kingdom. He was introduced to President Xi and First Lady Peng Liyuan at a House of Lords reception following the President’s speech to both Houses of Parliament. He also represented the CBBC at the State Banquet at Buckingham Palace and at the following night’s banquet hosted by the Lord Mayor of London. Additionally, Lord Sassoon represented British business at a meeting with the President at Mandarin Oriental Hyde Park, which was also attended by Matheson & Co Director Lord Powell.

06

From the Centre

Lord Leach (left) and Jack Ma.

Centre right: Jardine Matheson Group Director Lord Sassoon and Group General Counsel Jeremy Parr at the

Astra Daihatsu Motor plant in Sunter.

One on One MeetingMatheson & Co Director Lord Leach and the Chairman of the Alibaba Group, Jack Ma, held a private meeting in London during a recent visit to the UK capital by Mr Ma. The meeting followed a dinner for 16 guests given by Mr Ma at Claridges and attended by Lord Leach.

The Alibaba Group is one of the world’s most successful Internet-based businesses and entrepreneur and philanthropist Mr Ma is currently the richest man in China and the 18th richest globally, with an estimated net worth of US$23.6 billion.

A warm reunion for Matheson & Co Director Lord Powell (left) and Guangdong Party Secretary and Politburo member Hu Chunhua.

Firsthand InsightJardine Matheson Group Director Lord Sassoon and Group General Counsel Jeremy Parr gained firsthand insight into Astra and other Group business interests in Indonesia during a two-day visit.

They started at the Sunter Assembly Plant of PT Astra Daihatsu Motor and then proceeded to PT Astra Honda Motor’s facility at Cikarang where they viewed the assembly process of Honda motorbikes. From there, Lord Sassoon and Mr Parr moved on to the Toll Gate at Cikupa, which is operated by Astra subsidiary PT Marga Mandalasakti and controls a 72.5-kilometre stretch of highway between Tangerang and Merak.

Next day Lord Sassoon and Mr Parr visited PT Astra Sedaya Finance, Tunas Ridean BMW Saharjo and Jakarta Land development, World Trade Center (WTC) Sudirman. There they toured the offices of PT Permata Bank and Permata Prioritas and saw the development of office tower WTC III and the Jendral Sudirman mosque.

Lord Sassoon and Mr Parr concluded their visit at the show unit of Anandamaya Residences, a Hongkong Land and Astra joint venture. The luxurious residential project is located in the Central Business District of Jakarta.

Enduring RelationshipMatheson & Co Director Lord Powell has held his sixth meeting over the last few years with Guangdong Party Secretary and Politburo member Hu Chunhua.

During the session, they discussed the outcome of the recent Communist Party of China’s Central Committee Plenum as well as the prospects for Jardine businesses in Guangdong Province.


As the world’s largest trader and with an economy that is contributing 25% to global GDP growth, China is having a greater impact on the global economy than at any other time during its modern history. Closer to home that impact is reflected in China’s growing importance to the Jardine Matheson Group, which today manages investments in Greater China of some US$36 billion, of which over US$8 billion is in mainland China. As we enter the New Year, we look at China’s prospects and how the Group can grasp the opportunities being presented by this developing economic powerhouse.

2015 will probably be remembered as a tumultuous year for China’s economy. During the summer, stock market values fell significantly, the devaluation of the Renminbi (RMB) sparked exaggerated fears that China

China Powerhouse Fuels Opportunities for Group Businesses

was headed for a serious downturn, and for the first time since the global financial crisis, quarterly GDP growth dipped below 7%. 2016 also got off to a shaky start with 7% wiped off the value of stocks on the CSI 300 on the first day of trading.

“China is currently going through a major transition of its economy, which has implications for the Jardine Matheson Group,” said Deputy Managing Director Adam Keswick, who is responsible for the Group’s strategic development in China. “Against a backdrop of global economic headwinds and increasing uncertainties, it might seem that China faces a tough rebalancing act, yet we see tremendous opportunities for the Group as increasing wealth in the country and the emergence of a significant middle class plays to our strengths.”

08

Perspective

To understand why China is rebalancing its economy, one needs to look back at its recent history. During the early 2000s China experienced almost a decade of unprecedented double-digit growth, but the 2007-8 financial crisis hit exports and growth stalled. In response, Chinese policy makers made available a RMB4 trillion (US$608 billion) package to stimulate the economy. Too much money, however, went into property to meet demand for asset investment and infrastructure projects that offered only average returns, further fuelling speculative activities. This had a knock-on impact on financing in the real economy.

Manufacturing output continued to outstrip demand, while the investments in infrastructure and property had the effect of driving up global commodity prices. For example, China used more cement from 2012-2015 than the US used in the entire 20th Century. Credit also rose dramatically and state-owned enterprises (SOEs) and local governments were inclined to borrow heavily. During 2009-2012, the increase in China’s M2 – a broad measure of money circulating in the economy – was greater than the accumulated period from 1949-2008.

US$10,000

US$311b

51

US$20,000

6.9%

%

China 2015GDP growth at

Servicesmake up

Chinese R&Dreaches

China’s GDPper capita to reach

by 2020

by 2020

of GDP

1 in 4 people in China will have a GDP

per capita of


boost domestic consumption and reduce overcapacity in the economy. Qualitative growth will also place a greater focus on employment rather than raw GDP numbers. This means more space for service industries to develop and, as part of China’s declared commitment to reduce emissions, an emphasis on low carbon industries and higher energy efficiency.

The government has also set down political doctrine recognizing the key role of the market in the allocation of resources and seeking to reduce government intervention and bureaucracy. Subsequent policy meetings have underlined the importance of the rule of law. Policy planners want to restructure the economy towards a more market-based system that encourages private entrepreneurship and innovation, and to shift from a Keynesian demand-side model to a supply-side one.

Making Reforms WorkIt will take some time for such reforms to filter down through the economy, so the current slowdown is not unexpected. There are also downside risks as the restructuring tries to deal with high leverage, over capacity and high financing costs.

“The reforms that are necessary if China is to grow sustainably and strongly over the next decade...will surely take a toll on growth in the short run,” wrote Harvard University professor and former US Treasury Secretary Lawrence Summers in November 2015.

With all this surplus money available in the economy, unscrupulous practices became a temptation.

At the same time China’s changing demographics presented another challenge, that of acute labour shortages in the coastal areas coupled with an ageing workforce and rising costs.

“It became obvious that there needed to be changes to the country’s growth model, which had also had a considerable impact on the environment,” explained Jardine Matheson Group China Chairman David Hsu. “In addition, there was the risk of China being caught in the ‘middle income trap,’ i.e. stagnating at middle-income levels and failing to move forward. The new administration led by President Xi Jinping, who came to office in 2013, was acutely aware of all these factors and that the time for China to reform had arrived.”

The New NormalChina’s ‘new normal’ has become the descriptor for this new era of economic development. First mentioned by President Xi during a visit to Henan in May 2014, the ‘new normal’ essentially describes China’s transition from a high growth to mid-to-high rate growth economy with an emphasis on sustainable qualitative, rather than quantitative, growth.

Its goal is to build a moderately prosperous society by 2020 with the specific aim of doubling 2010 GDP and GDP per capita levels to create a larger middle class. A key part of this strategy is to increase urbanization,

10

Perspective

Although some industries are down, emerging

sectors like e-commerce are booming.

Put into perspective, however, although GDP growth in 2015 slowed to 6.9%, 6.9% of US$10.3 trillion is still a very large number and is the same as adding an economic equivalent of Switzerland each year. There is also still ample room for both monetary and fiscal easing.

In an editorial published by The Economist in November 2015, Premier Li Keqiang said, “Yet this transition from ‘bigger is better’ to ‘less is more’ is a good thing. I would otherwise worry whether the reforms were working as intended.”

Current GDP figures give a limited overview. Although some industries are down, emerging sectors like e-commerce are booming. On 11th November 2015, China’s ‘Singles Day’, Alibaba registered RMB91.2 billion in sales (US$13.9 billion), breaking previous records. Exports have become less important as services now account for 51% of GDP compared to 44% in 2011.

China is also showing economic divergence comparable to Europe across its large geographical mass. First tier cities such as Beijing, Shanghai and Shenzhen remain competitive, but second, third and fourth tier present a more mixed picture. Reflecting on how different the UK and Germany economies are compared to that of, say, Greece, one can see that some differentiation is required rather than viewing China as one homogenous market.

Adding to the slowdown have been the stock market falls and RMB devaluation. While both the New Year and summer stock market declines were dramatic, the figures have shown a limited impact on the real economy. Stocks represent less than 15% of household assets and just 5% to 10% of the population is exposed to the market volatility. The surprise RMB devaluation in August 2015 might have been seen as an attempt to help struggling exporters, but the true purpose was to meet conditions set by the IMF for the RMB to be included in its Special Drawing Rights reserve currency basket.

Focus on Innovation and Sustainable DevelopmentSo what are the prospects for China in the short term? At the top of the agenda is the 13th Five Year Plan, China’s economic and social development blueprint for 2016-2020. This calls for a stronger emphasis on innovation and sustainable development and is the perfect embodiment of President Xi’s leadership style – self-confident, independent, prudent and decisive. To address China’s ageing society, couples will henceforth be able to have two children instead of just one. There is also expected to be more progress in the reform of SOEs to seek greater efficiencies and improve corporate governance.

Innovation is a key focus. Chinese R&D has doubled in the past five years, achieving as much as US$311 billion. There will be a strong push for policies such as ‘Made in China 2025’, which aims to encourage more homegrown technology and create added value. The ‘Internet Plus’ initiative is based on Germany’s ‘Industry 4.0’ whereby traditional industries are being encouraged to adapt to the Internet age.

Innovation is also being extended to the financial sector to spur domestic reforms and lower the cost of capital.

Information and communications technology solutions giant Huawei, which was first established in Shenzhen in the late 1980s, is now a global market leader and a successful ‘Made in China’ example.


Opportunities for the Group in ChinaIt is projected that by 2020, China’s GDP per capita will reach US$10,000, compared to over US$7,000 in 2014 and that a quarter of the population will have a GDP per capita of US$20,000. This means that about 350 million people in China will have a spending power bigger than the current population in the United States.

“In other words, by 2020, there will be a market inside China that is equal to the size of the US market. That makes me very excited about China’s future,” said David Hsu.

“The focus of Group businesses in China has been to provide premium products and services to the high to middle income group in the country. This aligns with our investment focus as we aim to provide a better living quality and environment for this market segment,” he added.

By 2020, there will be a market inside China

that is equal to the size of the US market.

Jardine Matheson Group China Chairman

David Hsu

Hongkong Land has set new standards of design and quality in its residential developments in mainland China such as seen here at Landmark Riverside in Chongqing.

The Group’s involvement in China covers many aspects of life there. For example, Hongkong Land has set new standards in design and quality in its residential developments in many cities including Beijing, Chengdu, Chongqing, Shanghai and Shenyang. Hongkong Land will also soon be opening ‘WF Central’, a premier retail development in the heart of Beijing. Along with new investments in Shanghai, Hongkong Land plans to continue to expand its mainland portfolio and further enhance its position for the future.

Pan-Asian retailer Dairy Farm is seeing strong demand from more sophisticated Chinese consumers seeking better quality food products and has increased its exposure to the mainland market through its 19.99% shareholding in leading retailer, Yonghui Superstores. Yonghui also has a leading role in China’s SOE reforms. In April 2015, it took a 21.17% stake in Lianhua Supermarket, a major SOE retailer in East China, and was also awarded the operational management rights to turn Lianhua’s business around. This partnership will put Yonghui supermarkets in a strong position to develop its brand and market penetration, while a recent tie-up with JD.com will accelerate Yonghui’s development of its e-commerce platform.

“As a Group, we believe that the ability to innovate is more crucial than ever, along with a determination to see the job through, which has always been a hallmark of our businesses,” said Mr Hsu. “Jardines is not afraid to go against the flow and take risks, but this is always balanced by prudent financial management.”

The Group’s IT solutions provider, JOS, recently unveiled an extended range of mobility solutions to drive growth for businesses in China. With mobility being a key pillar of China’s Internet Plus strategy, JOS’ enhanced offerings can provide a solid foundation for businesses to realize their ambitions. JOS has also been working closely with retailers to develop their online to offline offerings

Leading retailer Yonghui Superstores, in which Dairy Farm holds a 19.99% interest, offers excellent opportunities for growth in mainland China.

12

Perspective

Hongkong Land (14 commercial and residential projects)

Mandarin Oriental (3 operational hotels, 5 hotels under development)

Zhongsheng Group (191 dealerships)

Zung Fu (34 outlets)

Yonghui Supermarkets (364 supermarkets, 180 under development)

7-Eleven (722 convenience stores)

Mannings (219 stores)

Maxim’s Group (105 cake shops, 73 restaurants)

Jardine Lloyd Thompson Insurance brokers

Jardine Pacific (JOS, JEC, Gammon and JASG)

Chongqing

Guangdong

Fuzhou

Shanghai

Tianjin

WuhanChengdu

Beijing

Hongkong Land (14 commercial and residential projects)

Mandarin Oriental (3 operational hotels, 5 hotels under development)

Zhongsheng Group (191 dealerships)

ZungFu (34 outlets)

Yonghui Supermarkets (364 supermarkets, 180 under development)

7-Eleven (722 convenience stores)

Mannings (219 stores)

Maxims Restaurants (105 cake shops, 73 restaurants)

Jardine Lloyd Thompson Insurance brokers

Jardine Pacific (JOS, JEC, Gammon and JASG)

Chongqing

Guangdong

Fuzhou

Shanghai

Tianjin

WuhanChengdu

Beijing

and shopping analytics. Separately, Zung Fu and Zhongsheng Group are well positioned to meet the demands of the increasing numbers of aspirational Chinese consumers who can afford luxury cars.

A number of Jardine Matheson Group companies, such as Mandarin Oriental Hotel Group, which will have five hotels in operation in mainland China by the end of 2017, including two in the capital Beijing, have now set up WeChat platforms to engage with their customers and hope to expand this programme further. WeChat has evolved from instant messaging to offer a multitude of services, with enormous potential for the future.

“Looking ahead there are also other possibilities to be explored particularly with China’s changing demographics. Its ageing society and the easing of the one-child policy will definitely create new opportunities in the healthcare and education sectors,” said Mr Hsu.

“As the economic centre of gravity shifts eastward, China will remain, for the foreseeable future, an incredibly exciting market. Although the positive benefits of China’s current reforms may take some time to be realized, it is up to us as a Group to position our businesses to make the most of them,” he concluded.

With facilities such as this 4S showroom in Guangzhou, Zung Fu is well positioned to meet the demands of Chinese consumers who aspire to own a luxury car.

The Group’s Footprint in Mainland China


Phase One of Mandani Bay in Cebu will comprise around

1,200 residential units in two towers sitting atop a podium, which will include retail stores.

Hongkong Land is creating two new luxury lifestyle destinations – one in Ho Chi Minh City in Vietnam and the other in Cebu in the Philippines. It has also held an exhibition in Hong Kong ‘From Dream to Reality...The Story of Hongkong Land’ which recounts its history since its founding in 1889.

With panoramic views of the Saigon River, ‘The Nassim’, which is located in the heart of Thao Dien in Ho Chi Minh City District 2, will set new standards of sophistication in Vietnam. A premium joint venture project with SonKim Land, The Nassim will comprise 238 one to four bedroom condominiums and penthouses.

“Vietnam’s real estate market has been growing, especially in the high-end segment of the condominium market,” explained Hongkong Land Executive Director Robert Wong. “The Nassim will be a welcome addition to Hongkong Land’s regional residential portfolio.”

In Cebu, ‘Mandani Bay’ is expected to transform a prominent 20-hectare waterfront site in Mandaue City into a contemporary lifestyle destination. Located between Mactan Island and Cebu Business Park, the joint venture project with Taft

Properties will be developed in phases over more than ten years and also include retail and office components.

“Leveraging Taft’s intimate knowledge of the local market with Hongkong Land’s international experience, Mandani Bay will provide a new benchmark for residential communities in Cebu,” said Mr Wong.

Meanwhile, From Dream to Reality...The Story of Hongkong Land encapsulated Hongkong Land’s shared past with the development of Hong Kong itself. Held at The Rotunda, Exchange Square in Central, the exhibition used material which included rare prints, archival photographs, commissioned reclamation maps and an electronic version of ‘Hongkong Land at 125’, a publication that records 125 years of its history.

“Hongkong Land has been instrumental in creating the city landscape as it now stands,” said Chief Executive Y K Pang, “but the foresight of the founders today extends far beyond Hong Kong, with a legacy of world-class properties across the Region including these latest ones in Vietnam and the Philippines.”

Hongkong Land Turns Dreams into Reality

14

Taking the Lead

Air cargo arriving in Hong Kong is carried in bonded trucks via Hacis Superlink China Direct service to Nansha, taking only three hours to reach the new free trade zone.

Located in Nansha, the Hacis facility sits within a

designated e-commerce

zone, which will house future e-commerce

fulfillment centres.

Hactl Making the Most of E-Commerce Revolution

Mandarin Oriental to Buy in BostonMandarin Oriental International Limited is to acquire the freehold interest in the property that houses Mandarin Oriental, Boston together with its hotel business for US$140 million.

Mandarin Oriental has managed the 148-room hotel, which is situated on Boylston Street in Boston, under a management contract since its opening in 2008. The Group also manages 85 privately owned Residences at Mandarin Oriental connected to the hotel.

The hotel had been offered for sale by auction, and a number of bids had been received. Mandarin Oriental has exercised its right under its long-term management contract to acquire the hotel from CWB Hotel Limited Partnership for a sum equivalent to the highest bid. Completion of the deal, subject to final court approval of the terms agreed at auction, is expected to take place in the first quarter of 2016.

“This acquisition ensures the continuity of our position in Boston, and we look forward to maintaining our award-winning service in this key gateway city,” said Mandarin Oriental Hotel Group Chief Executive Edouard Ettedgui.

Mandarin Oriental’s total investment of US$140 million will be funded through a mixture of existing cash reserves and debt and the acquisition of the hotel is anticipated to have a positive impact on the group’s earnings.

Hong Kong Air Cargo Terminals Limited (Hactl) is gearing up to make the most of the e-commerce revolution that is changing the way the world shops and impacting the way goods move to market.

With mainland China already the world’s largest e-commerce market, Hactl’s value-added logistics arm, Hong Kong Air Cargo Industry Services Limited (Hacis), has launched its latest SuperLink China Direct depot to specifically target cross-border e-commerce. Located in Nansha, a new Free Trade Zone, the Hacis facility sits within a designated e-commerce zone, which will house future e-commerce fulfillment centres. It is integrated with Hactl’s sophisticated warehouse management, road management and Customs systems and has full-time Customs presence on site. In addition, Hacis’ cross-border fleet is certified and equipped with approved Customs electronic locks, which eliminate inspection at the border, shortening overall transit times.

Meanwhile, embellishments to COSAC-Plus, Hactl’s air cargo management system, which facilitates e-freight, are making everyday dealings with Hactl even easier for its customers. The new ‘COSAC-Portal’ brings together all the most often-used features of COSAC-Plus, along with commonly needed information, in a single screen, making it even more user friendly.


Siam City Cement Lays Foundations for Future Growth

(Above): SCCC is focusing on operational excellence and building a sustainable future.

(Below): SCCC believes in ‘One group, one vision, one team’.

We will continue to build on our long heritage of shared

loyalty, creating trusting relationships with our

business partners, our people and

our community while achieving the best

value and a sustainable future for all

our stakeholders

One of the largest cement manufacturers in Thailand, Siam City Cement Public Company Limited (SCCC), in which Jardine Cycle & Carriage holds a 24.9% interest, has recently updated the company’s vision and outlined four key commitments which will drive its future business strategy and operations.

SCCC, which owns three cement plants with a total annual production capacity of 14.8 million tonnes, is approaching the next chapter in its 47-year history with a focus on operational excellence and responsible and sustainable operations.

The four commitments – working as a team, doing what is right, challenging convention and caring about the future – will see SCCC implement new technology and process improvement initiatives. Among these are SAP HANA, the first advanced information technology system capable of accessing customer data on a real-time basis to be introduced by a heavy industry in Southeast Asia. SCCC’s Mobile Sales Application is also helping the company’s sales force enhance customer relationship management, while a new web sales system called ‘INSEE Connect’, based on SCCC’s Thai name, allows its customers in a single sign on to place online orders, make payments and reports, and access loyalty programmes.

SCCC has already made history as Thailand’s first cement producer to receive

the Green Industry Level Five certificate from the Industry Ministry for thoroughly embracing green practices at its three manufacturing plants. In 2015 it won six energy conservation awards in three different categories – fuel alternative, cement co-processing, and tropical building – at the ASEAN Energy Awards and Thailand Energy Awards.

“We will continue to build on our long heritage of shared loyalty, creating trusting relationships with our business partners, our people and our community while achieving the best value and a sustainable future for all our stakeholders,” said SCCC Chief Executive Officer Vorathep Rangchaikul.

SCCC Chief Executive OfficerVorathep Rangchaikul

16

Taking the Lead

Group Technology and Risk Conference Looks at Survival

Fung Group Hong Kong Chief Catalyst Richard Kelly presented tips to encourage innovative behaviour. These included Start with Purpose; Look for Inspiration; Experiment & Prototype; and Reflect to Learn.

On ‘The Future of Business in a Period of Exponential Technology Change’, award-winning futurist and author Rohit Talwar described a universe of data and contended that it was still being used poorly today. He said organizations should ask, “do we have a digital and global mindset?” and “what would we love to create in our business?”

Following on from the Knowledge & Innovation workshops launched by Jardine Matheson Group Managing Director Ben Keswick, the Group’s Technology and Risk Conference had as its main theme, ‘Innovation: How to Survive/Thrive in an Era of Extreme Technology Disruption’.

Group business executives and IT specialists gathered in Hong Kong to examine how traditional business models are being challenged by disruptors and the importance of instilling a culture of innovation. Cyber security was also on the agenda.

While innovation is often thought of as being product based, process and business model innovations are equally important. Jardine Restaurant Group’s (JRG) Ravel Lai outlined the actions JRG has taken to build strong customer loyalty at Pizza Hut Hong Kong using social based customer relationship management (CRM) software supported by data analytics and a mobile first strategy.

Jeongmin Seong from the McKinsey Global Institute emphasized the need to embed an agile process into an organization so that it can respond quickly while Doug Glen, a Hong Kong-based venture investor, talked about the difficulties for large organizations to reinvent themselves.

Organizations should ask, “do we have a digital and global mindset?”


Mobile Payments A Big Hit with 7-Eleven South China CustomersMobile payment solutions have proved a big hit with 7-Eleven South China customers since they were launched in 2014, particularly with the younger generation.

Following the introduction of ‘Alipay’ with Alibaba, a second partner, Tencent, whose ‘Wechat’ platform currently has 800+million active users in China, was added. With the support of these two digital giants, 7-Eleven South China’s mobile payment sales rose from 1% in January 2015 to more than 12% in October and in less than a year, its Wechat account has attracted 720,000 followers.

Most recently, 7-Eleven South China has also become the first retailer in Guangdong Province to launch another Tencent mobile payment offering, ‘QQ Wallet’.

A Jardine Restaurant Group joint venture has opened the first Pizza Hut in Myanmar, in Yangon. A second is due to open later this year with plans to expand to between 15 and 20 outlets over the next five years.

Meanwhile, Pizza Hut Taiwan has marked the milestone of the opening of its 200th store with the introduction of several innovations.

Since opening the first Pizza Hut store in Taiwan in 1986, Pizza Hut has become the leader in the food delivery market while its ten pizza bars and new ‘express’ store offer a premium choice for customers. In addition, Pizza Hut’s online ordering sales now represent 50% of total sales and over the next three years, an enhanced system will include fun features and user-friendly interface platforms.

New Slice of the Market for Pizza Hut

Since first opening in Taiwan in 1986, Pizza Hut has

become the leader in the food delivery market.

Payments by mobile have become increasingly popular with customers in 7-Eleven South China stores.

18

Taking the Lead

Stronger Identity for JOSJardine OneSolution has strengthened its identity by reshaping and rebranding its organization to ensure that it capitalizes on future technological advances.

Its IT distribution operation has been separated from the IT Infrastructure and Services (ISD) business and given the distinctive brand identity of ‘Innovix Distribution’ with a commitment to becoming ‘Channel Partner of Choice for Asia’ and to drive growth for its technology partners, who now number more than 7,300 resellers and retailers. The ISD division keeps the well-established ‘JOS’ as its identity in operations which are synonymous with systems integration, IT solutions and technology consultancy and has also bolstered its capabilities in key areas such as Big Data, Cloud Computing, Enterprise Applications, Enterprise Security and the Internet of Things. Subsequently the role of Jardine OneSolution’s group function has become one of empowering the two operating brands and, as such, it has assumed a new brand identity as ‘JTH Group’.

News in Brief

Dairy Farm Malaysia Aims for the FinestThe food business of Dairy Farm Malaysia has streamlined its retail facility management set-up with the aim of having the finest such operation in Malaysia, while achieving savings of at least US$25 million over five years.

As a first step, Dairy Farm Malaysia transferred the maintenance, repair and cleaning of its 150 hypermarkets and supermarkets nationwide to a new facility management partner, City. In addition, 152 Dairy Farm facility management staff moved across to City. Expected benefits include greater cost saving, better preventative maintenance and online energy monitoring, less time spent on administration and ultimately, cleaner stores.

A dedicated Kuala Lumpur-based hotline and helpdesk have had a positive impact on efficiency. During the first 130 days of operations, City received an average of 319 calls per day and made 183 calls to stores and contractors and on average, completed 143 jobs daily.

Jardine Schindler to Keep Thai Shoppers on the MoveJardine Schindler (Thai) Ltd is to provide lifts and escalators for five malls, which are part of a US$1.4 billion investment in the development of new world-class shopping centres across Thailand and the revamping of existing malls in Bangkok by leading Thai mall operator, The Mall Group.

Schindler will supply a total of 60 Schindler 5500 elevators, 212 Schindler 9300 AE escalators and six moving walks for the five malls, which are located in Bangkok, Hua Hin and Phuket.

“These contracts reflect our strong presence in the Thai market,” said Jardine Schindler (Thai) Ltd Managing Director Suwanna Kongkanjana.

Meanwhile, the healthcare IT expertise of JOS in Hong Kong and Singapore has helped win two new contracts.

In the first, JOS provided consultation and a Big Data solution to a Hong Kong statutory body for medicare for use in clinical analyses and laboratory testing. In the second, Singapore-based Parkway Hospitals, a leading provider of private healthcare in Asia, chose JOS to refresh its technical capabilities. JOS had already been providing the group with support services for the previous three years, a factor which played a large role in winning the new contract.


THACO Exceeds all Expectations

JLT Tools to Help Manage Cyber RiskJardine Lloyd Thompson’s (JLT) cyber risk team is currently developing two tools which are due to be released shortly and will help clients better understand and manage their cyber risk.

The ‘Cyber Exposure/Maturity Index’ gathers information on cyber risk more efficiently, illustrating a client’s comparative cyber risk exposure, and benchmarking it against their peers. It also enables them to evaluate changes in exposure and maturity from year to year, to inform both underwriting submissions and risk mitigation measures. The ‘Everyday Analytics’ platform for cyber risk helps quantify cyber exposures and ultimately recommend risk transfer programme options by combining JLT’s extensive product and marketplace expertise with a global analytics platform.

Historically it was predominantly technology companies who approached JLT to discuss their cyber risk needs, but since the rise of e-commerce, electronic communication, mobile connectivity, and subsequent adoption of technology across all industry sectors, everyone has concerns, in particular about dependency on technology and the need to insure against technology failure.

“Failure of technology is an insurable risk and has opened up a whole new set of conversations with clients,” said JLT Specialty Ltd’s London-based Head of Cyber Sarah Stephens. “The exposure axis in the Cyber Exposure/Maturity Index and the Everyday Analytics platforms will work as one, allowing us to provide our clients with even deeper insights and decision support.”

The involvement of Truong Hai Auto Corporation (THACO), in which Jardine Cycle & Carriage holds a 27.1% interest, at the 11th Vietnam Motor Show 2015 exceeded all expectations.

THACO exhibited five products representing all segments of the three auto brands of Kia, Mazda and Peugeot at the show, which was held at the Saigon Exhibition and Convention Center in Ho Chi Minh City, and staged by the Vietnam Automobile Manufacturer Association (VAMA). THACO also used the opportunity to hold a press conference to launch the all-new Mazda 2, and as well as viewing the cars on display, THACO customers were able to enjoy entertainment provided by a host of well-known singers and artists.

THACO’s presence at the show was reported by nearly 100 local newspapers and after five days of exhibition, the company had exceeded all expectations with purchase orders for 1,250 vehicles including 600 Kia, 550 Mazda and 100 Peugeot.

Speaking at the opening ceremony for the show, which was attended by THACO Chairman Tran Ba Duong, the Deputy Minister of Industry and Trade in Vietnam, Cao Quoc Hung, said he appreciated the value brought by VAMA and its members and he hoped that in the future, Vietnam’s automobile industry would become the key industry of the country’s economy.

Failure of technology is an insurable risk

and has opened up a whole new set of

conversations with clients.

JLT Specialty Ltd’s London-based Head of Cyber

Sarah Stephens

20

Taking the Lead

Major Milestone for Maxim’s

Maxim’s Group has achieved a major milestone with the opening of its new headquarters building, Maxim’s Centre, at Cheung Sha Wan in Hong Kong.

Maxim’s established its first restaurant in Hong Kong in 1956 and throughout the subsequent 60 years has been devoted to providing customers with a diverse, quality dining experience and maintaining its culture of food innovation and team collaboration. The group has contributed to the creation of many new concepts, which have become leading food and beverage brands. These achievements have been made possible by excellent leadership, the dedication of its staff, and tremendous support from customers.

The new Maxim’s Centre is a good demonstration of teamwork. It originated in 2011 with collaborative work on the design and concept followed by demolition of the previous building in early 2012, then construction and fitting out. Many of the suggestions made by staff have contributed to the building’s vibrant working environment, which is expected to fuel Maxim’s continuing passion for sustainable growth.

“The opening of Maxim’s Centre marks a new milestone for the group and signifies our hope for the future,” said Maxim’s Chairman and Managing Director Michael Wu.

Strong Demand for Astra/Hongkong Land DevelopmentThere has been strong demand for ‘Anandamaya Residences’, a luxurious apartment complex in a strategic area of Jenderal Sudirman Street in Jakarta, with 0ver 90% of the units sold.

The development is being marketed by PT Brahmayasa Bahtera, a joint venture between Astra and Hongkong Land, and offers one luxury and two premium residential towers featuring the highest quality materials. Facilities include an indoor and outdoor swimming pool, fitness centre and spa, jogging track, tennis and badminton courts and extensive gardens.

Apartments at Anandamaya Residences include two, three and four bedroom units and since they were first marketed prices have risen significantly to Rp101 million (US$7,500) per square metre, making

them among the highest in Indonesia’s primary residental market and an attractive investment for buyers. The development is due for completion in 2018.


Group companies achieved exceptional results at the annual Hong Kong Retail Management Association (HKRMA) Service & Courtesy Awards with Jasons Food & Living named ‘Service Retailer of the Year’ for the second time. The awards recognize retailers with excellent service performance under an industry-wide standard.

Wellcome and Market Place by Jasons also each won a Service & Courtesy Award, while five members of the Wellcome Hong Kong team reached the final round of assessment with two of them winning awards in the ‘Earn & Learn Student’ and ‘Outstanding Performance’ categories.

For the ninth year in a row, 7-Eleven won the ‘Convenience Store’ category at the Junior Frontline Level. Sales Assistant Lai Lan Shallan impressed the judges with her sincere service attitude, professional image and product knowledge, and outstanding presentation skills.

“This achievement underscores 7-Eleven’s continual commitment to providing high standards of service to consumers,”

said 7-Eleven Hong Kong & Macau Chief Executive Officer Glyn Hughes.

Mannings Hong Kong and GNC received a total of six awards, which reflected their passion for delighting customers and their strong belief in people and teamwork. These included a bronze ‘Best Team’ award, two category awards, an ‘Earn & Learn Student’ award and two ‘Outstanding Performance’ Winners.

The importance placed by Starbucks Hong Kong on top-notch customer service and developing its people was reflected in the three awards won in the ‘Food Shops’ category by two frontline staff and one supervisory staff member.

Meanwhile, Pizza Hut Hong Kong not only continued its unbroken run of achieving HKRMA Service & Courtesy Awards for 21 consecutive years, but also won a gold award for ‘Best Team Performance’, and ‘Supervisory’ and ‘Junior Frontline’ level awards in the ‘Restaurants’ category.

Recognizing Performance

Service and Courtesy Pays Off for Group Companies

22

Astra Honda Motor Innovation is a WinnerA technological innovation developed by the engineer team of PT Astra Honda Motor (AHM) has been successfully applied for the first time in the world to the Honda motorcycle plant in Pegangsaan, North Jakarta and will gradually be rolled out to all AHM’s plants in Indonesia.

The ultrasonic ‘Effective and Efficient Cleaning Machine’ increases the efficiency of the machining process by up to 65% and extends the life of the rolling tap tool up to three times, while still maintaining its quality. There is also a resulting increase in productivity.

A PT Astra Honda Motor employee uses the award-winning ultrasonic cleaning machine on rolling tap tools.

Gammon Keeps CarbonCare® LabelFollowing on from its achievement of a CarbonCare® Label Certificate in 2014, Gammon’s relentless efforts to reduce its carbon footprint earned it the 2015 version at the CarbonCare®/CarbonCare® Action Label Award Ceremony. The Certificate validates Gammon’s effectiveness at minimizing its carbon footprint at the physical boundary of all its operations in Hong Kong (except joint venture projects), head office in Singapore and steel fabrication yard in mainland China.

Over the last decade, Gammon has been a leader in the construction industry in its efforts to reduce its carbon footprint and improve its environmental performance throughout its design, procurement and operations processes. Initiatives have included switching to B5 biodiesel for plant and machinery as well as mixer trucks, energy savings at the Gammon Technology Park, the use of ‘green’ concrete and the implementation of energy management systems in public housing projects and online tracking of its environmental performance on the Gammon intranet.

In addition, Gammon’s application of carbon smart design and construction is ensuring that less carbon is generated on many other major projects too such as its MTR SCL 1111 cut and cover tunnels contract on the Shatin to Central Link Project. Here, good practices have resulted in 371 less construction days, 180 less nights worked and 9,510 tonnes less spoil generated, meaning 3,721 tonnes less carbon generated.

Centre: Gammon Director Tony Small with the 2015 CarbonCare® Label Certificate.

The innovation of the Effective and Efficient Cleaning Machine won AHM engineers the ‘Best Innovation in Oceania Asia’ award at the 11th Asia & Oceania Technology Exchange for the fourth time when they successfully outperformed participants from eight other countries. Subsequently, the AHM team was then invited to present and introduce its technology innovation to the world at the 2nd Global E-Technical Exchange, which was held in Yori, Japan. Altogether 59 themes from countries in Europe, China, Oceania Asia, North America and Latin America were on show.

“Leveraging this achievement, we hope that our AHM engineers can create other achievements and innovations through diverse best works in this strong global competition,” said AHM Production, Engineering, and Procurement Director David Boediono.


Pizza Hut Hong Kong Delivers Marketing Excellence

Ferrari Colchester Takes Pole Position with Mystery Shop ScoresJardine Motors’ Ferrari dealership in Colchester, UK has taken the number one position for ‘Mystery Shop’ customer service scores, attaining a phenomenal 96% and beating 171 other Ferrari dealerships worldwide. The achievement was announced at the Ferrari Global Dealer Conference, which was held in Florence, Italy.

“I am tremendously proud of the team for achieving such high recognition for their hard work,” said Ferrari Colchester General Manager Simon Beecher. “We are committed to delivering exceptional customer service and our fantastic Mystery Shop scores validate this.

“We deliver the same level of customer service day by day, year by year, and never falter. The key to this is having a team that has extensive knowledge about the brand, real passion that shines through, and tailors our service around every unique client.”

Pizza Hut Hong Kong’s (PHHK) ongoing delivery of outstanding marketing strategies has won it two marketing excellence awards.

PHHK won the 30th anniversary award for ‘Achievement in Marketing Excellence’ from the Hong Kong Management Association (HKMA) for its admirable performance in marketing over the years. Considered the ‘Oscars’ of the industry, the HKMA/TVB Awards for Marketing Excellence evaluate contenders on stringent criteria including ideas, strategies, originality and effectiveness.

Meanwhile, PHHK’s innovative and creative communication strategies to engage customers won it the ‘Excellence in Customer Engagement – Gold Award’ from Marketing Magazine for its hugely successful marketing campaign ‘Double the happiness, Double the sensation’.

“These two industry honours reflect the collaborative efforts of the PHHK team over many years,” said Chief Executive Richard Leong. “They will further inspire us to continue developing creative marketing strategies and strengthen our leading position.”

24

Recognizing Performance

Top Elevation for SchindlerSchindler has been awarded the Elevator World 2016 ‘Project of the Year’ Award in the category of ‘Elevator Modernization’ for its upgrade of the elevator system of Great Eagle Centre in Hong Kong.

The Elevator World Awards honour outstanding achievements in innovative design and the special approach applied to solve a major problem or overcome a unique challenge. Submitted projects are reviewed on their creativity, the challenges overcome, installation methods and techniques, the use of advanced technology, and overall quality of presentation.

The 33-storey Great Eagle Centre, an iconic office and retail building in Wan Chai, was built in 1983. The Schindler team replaced and upgraded the original 14 elevators with new controllers, gearless machines and highly efficient regenerative drives with Power Factor One (PF1) inverters. They also added PORT Technology, Schindler’s cutting-edge intelligent transit management system, to improve traffic efficiency and provide tenants with a smooth and contemporary ride experience. Work started in October 2013 and was completed in May 2015 with minimal disturbance to the building’s tenants.

“This award is testament to Schindler’s unrelenting dedication to enhancing customer experience and delivering best-in-class technology and premium quality service,” said Jardine Schindler Chief Executive Jujudhan Jena.

Hactl Lands Top AwardsHong Kong Air Cargo Terminals Limited (Hactl) has landed several prestigious awards.

At the Payload Asia Awards, Hactl and its added-value logistics subsidiary Hong Kong Air Cargo Industry Services Limited (Hacis) were both honoured with Hactl receiving the 2015 award for ‘Ground Handler of the Year (Customer Choice)’, and Hacis the ‘Regional Logistics Provider of the Year’ in both the ‘Customer’ and ‘Industry Choice’ segments.

Hactl has also been named 2015 ‘Air Cargo Operator of the Year’ by professional body Supply Chain Asia and praised for being an air cargo operator that prioritizes efficiency, security and customer service.

Meanwhile for the second year running, Hactl has won a Hong Kong Occupational Safety and Health (HKOSH) Silver Award in the ‘Safety Promotion’ category, in recognition of its highly successful Safety Week, which was held for the first time in September 2014 and is now an annual event.

In addition, Hactl’s efforts to significantly reduce its carbon footprint have been lauded with the award of a ‘Carbon Reduction Certificate’ from the Environmental Campaign Committee (ECC), which recognizes organizations that achieve its target of 3% annual carbon reduction. In fact Hactl has reduced its carbon footprint by no less than 12%, reflecting green initiatives which have included the use of electric vehicles, energy saving improvements, and increased use of biodiesel.

Gearless machines, which reduce

energy consumption and enhance

performance and safety, have been

used by Schindler in the upgrade of the elevator system at

Great Eagle Centre in Hong Kong.

Second left: Hactl Chief Executive Mark Whitehead receives the ‘Ground Handler of the Year’ award from Payload Asia Publisher Annie Tan. They were joined on stage by long-serving Hactl employees, from left, Hung Pui On, Wan Wing Cheung, Bruce Wong, and Cheng Wai Choi.


On Mental Health from the Jardine Ambassadors

Jardine Ambassadors Spread Festive Cheer

Health in Mind (HIM) students participating in the 2015-17 programme have attended a series of workshops designed to help them learn about mental health and their roles as advocates.

First up was an introductory workshop on mental health and a visit to Kwai Chung Hospital followed by another workshop on myths and facts related to mental illness and some basic volunteer training.

Putting what they had learnt into practice, over 130 student advocates joined in the annual City Orienteering event organized by the Jardine Ambassadors, along with 80 service users from six non-governmental organizations. The 45 teams formed had to complete assigned tasks at various checkpoints in the New Territories within budget and a set time.

“The service users really appreciated their day out in the New Territories and all remarked on the new experiences that they had enjoyed,” said Tradeport Hong Kong Chief Executive Officer and MINDSET Executive Committee member Kenneth Bell.

Meanwhile to enhance the understanding of and the acceptance of people with mental illness, second year HIM students participated in an inaugural session involving The Human Library, a movement started in 2000 in Denmark to promote dialogue, reduce prejudice and encourage understanding between different people. As a new activity in the HIM programme, Peer Support Workers, who are people recovered from a mental illness trained to help others with similar problems, were invited to engage with the students so that they could understand more about the issues the Peer Support Workers had faced on their own recovery journeys.

Health in Mind Advocates Begin Learning Process

26

Showing Spirit

The Challenge Supports Arts ProjectThe MINDSET Challenge 2015 raised S$333,000 (US$240,000) for the running of ‘Creative Mindset’, a centre set up for recovering clients from the Singapore Association for Mental Health (SAMH) as well as the public. The centre uses art, music or dance as a holistic form of expressive therapy to promote the psychological wellness and mental health of clients through enhancing emotions, cognitive abilities, motor skills and body co-ordination.

Now in its fourth year, The MINDSET Challenge attracted around 450 participants, beneficiaries, staff and guests. Competing in individual or team categories, the participants raced up 33 floors to the top of Marina Bay Financial Centre, Tower 1, in a test of their mental and physical resilience. Guest-of-Honour was Speaker of the Singapore Parliament Madam Halimah Yacob and the event also featured a band performance by clients of SAMH along with Mr Tan, a client recovering from schizophrenia, who demonstrated Pointillism, a form of dot art.

for all Executive Committee members and the Ambassadors.

MINDSET Place, which opened in 2010, provides a comfortable, caring and homely environment for 38 long stay residents recovering from mental illness. As well as round-the-clock support, MINDSET Place also offers daytime activities, engagement programmes and training in social and communication skills to assist residents with reintegrating into society.

Interaction between participants during the City Orienteering event successfully

promoted the Health in Mind student advocates’ understanding and

acceptance of persons in recovery from mental illness.

Second runner-up winners of The Mindset Challenge Team Relay category receiving their trophy from MINDSET Steering Committee member Warren Downey.

Jardine Ambassadors spread Christmas cheer by organizing two parties, one for members of the Richmond Fellowship of Hong Kong and the other for residents of MINDSET Place.

MINDSET’s Board of Governors and Executive Committee members joined in at both parties singing Christmas carols and enjoying games with the participants. On both occasions, members of Richmond Fellowship and MINDSET Place residents showcased their talent by performing a series of magic tricks.

“We practiced very hard to perform the tricks seamlessly,” said Richmond Fellowship member Ah Man. “The response from our audiences suggested that we were doing very well, which was most encouraging!”

To express their gratitude to MINDSET for organizing such enjoyable festive events, members of Richmond Fellowship created personalized Christmas cards and lip balm

We practiced very hard to perform the

tricks seamlessly

Richmond Fellowship member Ah Man


Walk Up Jardine House 2016 to Celebrate Health, Body and Mind!The 2016 Walk Up Jardine House will not only raise mental health awareness, but also celebrate body and mind with interactive educational and wellbeing workshops, yoga and meditation classes and muscular relaxation techniques, all designed to rejuvenate and revitalize. As well as the usual competitive race up the 947 steps of Jardine House, the event, which will be held on Sunday, 17th April 2016, will offer lots of fun and a carnival atmosphere for children and adults to enjoy alike. With free face painting, popcorn, photo booths, music and a fancy hat competition, everyone is invited to come along and join in what promises to be a jam-packed fun filled event for the whole family!

More Generosity from Maxim’s GroupMaxim’s Group has continued its ongoing passion to serve the community, work hand-in-hand with charity groups and help the needy by making another generous donation to MINDSET.

In its latest donation, Maxim’s presented a cheque for HK$1 million (US$128,000) to support MINDSET in its mental health related projects. The cheque was presented by, centre right, Maxim’s Group Chairman and Managing Director Michael Wu and Executive Director Wilson Wu to, left, Adam Keswick, Governor, and Ben Keswick, Chairman, of MINDSET, watched by Jardine Ambassadors Helen Tse of 7-Eleven Hong Kong and Ronald Kong of JEC.

In its latest donation, Maxim’s presented a cheque for US$128,000

to support MINDSET in its mental health related projects.

28

Showing Spirit

News in Brief

We CareJardine Aviation Services Group (JASG) has set up WeCare@JASG, an in-house volunteer group led by returning Ambassadors to support those less fortunate, particularly in the area of mental health. Activities have included outings and visits with service users and articles in JASG’s weekly staff e-newsletter, What’s Up!, with tips on how to stay happy and stress-free at work. So far over 230 staff have participated with more events planned for 2016.

Pop-Up in Singapore

MINDSET Singapore’s Social Enterprise team took another step towards raising awareness of mental illness and reducing the stigma often attached to it with the first-of-its-kind pop-up store in CityLink Mall. Partnering with mental health voluntary welfare organizations Club HEAL, Singapore Anglican Community Services and Singapore Association for Mental Health, the pop-up store displayed for sale handicrafts, such as this Batik handbag, made by their clients recovering from mental illness. The store was also manned by clients of the three organizations who are preparing to become retail sales employees and attracted a steady crowd of customers on a daily basis, especially coming up to Christmas.

Hongkong Land Administration Assistant, Commercial Property, China, Eddie Li helps two students of Shuren Primary School with one of the seat cushions for their classroom chairs.

Bonding in BeijingHongkong Land has bonded with colleagues and students in Beijing in its second Corporate Social Responsibility programme activity conducted in the capital city.

Twenty-nine staff from Hong Kong as well as from Hongkong Land’s commercial and residential property offices in Beijing travelled to Shuren Primary School in Shijingshan District and teamed up with 30 students on a school enhancement mission.

The day’s programme started with the donation of 620 seat cushions to provide the students with a warm and comfortable learning environment through the winter months. Together with the children, the volunteers tied the seat cushions to every chair in the classrooms. The group then painted the external walls of the school’s recently expanded art centre and created inspiring murals inside the classrooms, filling them with bright and vibrant colours.

“We worked until almost dusk, but had a most enjoyable and rewarding time together,” said Hongkong Land Assistant General Manager, Commercial Property, China, Shirley Lam. “All the volunteers and children were greatly satisfied with their masterpieces, but seeing the children’s beautiful smiles was the greatest achievement!”


Mannings China Makes a DifferenceFor the second year running, Mannings China, in partnership with Tencent Charity and the China Foundation for Poverty Alleviation (CFPA), has made a difference to deprived children through its charity programme.

Over RMB100,000 (US$15,000) cash and health and beauty products were collected during Chinese New Year and beyond through donations from suppliers and shoppers and then delivered to Guizhou, one of the poorest provinces in China, by Mannings China, Tencent, CFPA representatives and a group of Mannings customers.

Mannings also brought various great offers to distribute to children during the delivery programme and introduced the spirit of ‘health, beauty and wellbeing’ to all those who attended.

A Mannings China representative distributes gifts to delighted primary school students in Guizhou.

Astra Reaches Out to 150 Million People with Global GoalsAs one of the country’s largest companies, Astra was the power behind the campaign in Indonesia to create mass awareness about the ‘Global Goals for Sustainable Development’ – a to-do list for people and the planet, which has the commitment of over 190 world leaders and the ultimate aim of ending poverty, achieving equality, and tackling climate change by 2030.

In the week leading up to the UN summit, which endorsed the Global Goals, a global campaign aimed to promote them to seven billion people in seven days. In Indonesia, Astra partnered with the Ministry of Health and young rising star Chelsea Islan to champion the Global Goals and successfully spread the message to more than 150 million people across the country, with digital and social media contributing over 50% of the total reach.

Astra President Director Prijono Sugiarto said that the group’s involvement in the Global Goals campaign was in line with its ‘Catur Dharma’ philosophy to be an asset to the nation.

“For Astra, business is inseparable from the environment and surrounding society. We must not only be profitable, but also sustainable,” he added.

30

Showing Spirit

JEC Serves the CommunityJardine Engineering Corporation’s (JEC) Caring Team has been busy with a series of visits and activities to better serve the community, especially the elderly and children. These have included taking children to The Peak and Disneyland and visiting the elderly on Lamma Island. JEC has also received the Community Caring Award from the Hong Kong Children And Youth Services in recognition of its continuous support and volunteering efforts.

IKEA Hong Kong Joins Forces with Food AngelIKEA Hong Kong has launched ‘Love Meal’ food donations with local charity Food Angel to help people in need and bring more love and care to the community.

The initiative began with a visit to Food Angel by IKEA Hong Kong volunteers to help prepare 1,500 Love Meal boxes and play games with 100 elderly people. At the same time, IKEA Hong Kong also launched ‘Buy One Gift One’, a scheme whereby for every IKEA 365+ food saver purchased during the promotion period, IKEA Hong Kong would donate a meal to an elderly person via Food Angel. In addition, IKEA Hong Kong has also committed to donating 100 kilogrammes of food every month during 2016 to Food Angel.

Jardine Foundation Scholar is Star of the FutureJardine Foundation Postgraduate Scholar Pradita Astarina was one of four finalists in the ‘MBA Star’ category of the ‘Women of the Future Awards 2015’, a prestigious annual event which is held in London. The MBA Star award recognizes a female MBA student of “exceptional vision, talent and promise.” Ms Astarina, who is from Indonesia, completed her MBA as a Jardine Scholar at Judge Business School, Cambridge University in 2015 and is now hoping to pursue a higher degree at the University with the focus on women and leadership. Commenting on her success she said, “This one year has been such an amazing journey – and without Jardines, it would never have happened.”


Participants attending the Group Legal Conference in Taipei

gathered for a photograph before embarking on a series of team challenges in and around the

Xinyi commercial district of the city.

Conferences Reflect Group Synergy

Although the annual Jardine Matheson Group Legal, Human Resources and Corporate Communications conferences each had difference themes, together they reflected the synergy which exists across the Group, and the impetus created by recent ‘Fresh Thinking’ initiatives.

Exploring PersonalityPersonality – individual, corporate and cultural – was the focus of the Group Legal Conference, which took place at Mandarin Oriental, Taipei. More than 100 professionals from across the region participated in the conference, which began with a series of team challenges in and around the Xinyi commercial district of Taipei.

The theme of personality was explored in a presentation about the history and ethos of the Jardine Matheson Group, while role-plays and exercises enacted scenarios involving different cultural values and how one could resolve conflicts and enhance communication in a multicultural work environment.

Delegates attending the Human Resources conference rotated in groups through ten specialist booths set up as ‘Knowledge Cafes’.

32

Developing Talent

JLT Global Talent Exchange Broadens Horizons for High PerformersJardine Lloyd Thompson (JLT) has launched its 2016 Global Talent Exchange (GTX) initiative, a mobility programme that broadens the horizons of JLT’s high performers by giving them the opportunity to undertake a three month international assignment.

Introduced in 2014 in response to increasingly challenging insurance markets and the rapid growth of new centres of capital beyond Europe and the US, the strategic programme is designed to help JLT deepen its specialist talent pool globally.

“GTX is a key investment in the professional development of JLT’s high performers, offering the opportunity to deepen their specialty skills and knowledge whilst developing their understanding of the group, as well as building relationships and sharing knowledge with colleagues across our different operations,” explained JLT Group Deputy Chief Executive Officer Mark Drummond Brady. “This is a fantastic opportunity for anyone serious about building a career at JLT.”

This was reiterated by GTX Programme Manager Christina Alexander, who added, “Global mobility underpins our commitment to clients – to support them with globally connected teams who work effectively across borders, a crucial part of JLT’s distinctive strategy of being an international specialty broker. It also helps us deliver our shared commitment to provide a distinctive working environment for our colleagues.”

It is important that we create a good level of understanding

and co-operation across the professionals within the Jardine Matheson Group.

Group General Counsel Jeremy Parr

“It is important that we create a good level of understanding and co-operation across the professionals within the Jardine Matheson Group,” said Group General Counsel Jeremy Parr. “Articulating a common purpose and building personal relationships through events such as this helps us to be more effective in serving the Group.”

Fresh Thinking in Action‘Fresh Thinking in Action’ was the theme of the annual Human Resources (HR) Conference when over 200 HR delegates from Group companies gathered at Hong Kong Disneyland.

Professor Stewart Black of INSEAD facilitated the two-day conference, which included perspectives from special guests, Jardine Matheson Group Deputy Managing Director Adam Keswick and Melco Crown Entertainment Co-Chairman and Chief Executive Officer (CEO) Lawrence Ho. Three CEOs from Group companies shared how they have brought ‘Fresh Thinking’ into their businesses, while Melco Crown Entertainment Executive Vice President and Chief HR Officer Akiko Takahashi described how Fresh Thinking is helping her company face the challenges of the downturn in Macau.

Communicating in the New Technology EraAddressing how businesses should use technology to enhance their operations and get closer to customers in areas such as Big Data, analytics, social media and the Internet of Things was the objective of the Group Corporate Communications Conference, which was also held at Mandarin Oriental, Taipei with the theme ‘Communicating in the New Technology Era’.

A crisis preparedness workshop took place during the morning session where participants had to respond to the scenario of a company’s customer database being hacked, requiring a communications plan to be quickly developed to contain the situation.

The afternoon session focused on the application of new technologies in various Group businesses with speakers from Astra, Hactl, Pizza Hut and Nielsen Taiwan. This was followed by a panel discussion on key issues such as management buy-in, measuring the ROI, and challenges during implementation.


As a response and a solution to changes in the highly competitive and dynamic business environment that currently exists in Indonesia, Astra has introduced new guidelines in managing human resources.

Astra Human Capital Management Guideline (AHCM) and New Man Management Astra (MMA) were officially launched with the theme ‘New Horizon of Astra Human Capital’ at an event held in Jakarta.

Speaking at the event, Astra Chief of Corporate Human Capital Development Aloysius Budi Santoso said that the management of human resources had been adapted to Astra’s business context and future needs and the launch of this new phase would ensure that Astra could grow continuously with strong human capital, which had the character and motivation to provide added value. An ensuing panel discussion examined the implementation of human resources management in Astra’s business units and how it could support the realization of the company’s vision.

In endorsing the new guidelines, Astra Director Paulus Bambang W. emphasized how Astra had always tried to create a conducive work atmosphere and build an effective organization for the long term, but was now having to be more creative in sourcing and retaining its human capital in the midst of what he described as ‘a talent war’ and business competition. While continuing to treat its people in line with the spirit of its founder, Astra must apply the new AHCM and MMA consistently with the aim of improving workplace practices, he concluded.

Astra Introduces New Human Resources Guidelines

Insight for China Management Trainees and ExecutivesTwo special insight programmes have taken place in mainland China – one for management trainees and the other for executives.

Over the course of a week, four China Management Trainees (CMTs) from the 2015 intake visited business units in Beijing, Chengdu and Chongqing. Presentations and guided tours were organized to enable the CMTs to gain firsthand knowledge of on-site projects and to meet with colleagues in a variety of Jardine Matheson Group companies.

Meanwhile, over 140 participants attended the annual Executive Induction Programme (EIP), which was held in Beijing and for the first time, also in Chengdu and Chongqing to reflect the Group’s growing business interests in the two cities.

The half-day EIP is designed for newly joined employees or those who have not attended before with the aim of providing an insight into the core values, history, and business development of the Group. The feedback was extremely positive with participants saying that the sessions gave them a stronger sense of belonging.

A Zung Fu showroom sales manager in Chengdu addresses the China Management

Trainees on customers’ expectations.

34

Developing Talent

Gunawan Geniusahardja

Senior Management Changes

Linda ChanJohn Nolan Suparno Djasmin

Jardine Matheson Group Head of Human Resources Ritchie Bent has stepped down from his position after 15 years in the role. Mr Bent had been with the Group since 1988 and had held several positions in Jardine Pacific, including that of Director of Human Resources. He was much respected for his creation of the vigorous talent development programmes that have done much to build the management potential of people within the Group. Mr Bent has been succeeded by John Nolan. Previously Mr Nolan spent 28 years working in the consumer goods industry and held various senior positions in global and operational roles. He has extensive international experience having lived and worked in the US, UK, Singapore and Hong Kong.

Meanwhile, Head of Group Audit and Risk Management Tim Tang has taken up a new role as Finance Director of Wellcome. He has been succeeded by Linda Chan, who has joined the Group from Dentsu Aegis Network where she was Director of Risk & Audit. Ms Chan is a Chartered Accountant and a member of the Institute of Internal Auditors.

Following the restructuring of Astra’s finance, banking and insurance business into Astra Finance I & Banking, and Astra Finance II & Insurance, there have been several management changes.

Gunawan Geniusahardja, who since 2001 was the sole Director in Charge (DIC) of Astra Finance Companies, Banking and Insurance, has been appointed Senior DIC of Astra Finance I & Banking, while Suparno Djasmin has taken on the role of DIC of Astra Finance II & Insurance.

Mr Djasmin previously held the roles of DIC of Astra Motor II (Toyota) and Astra World, as well as Chief Executive of Toyota Sales Operation (TSO) and Vice President Director (VPD) of Toyota Astra Motor (TAM). At Astra Motor II (Toyota), he has been replaced by Djoko Pranoto, who is also DIC of Astra Heavy Equipment, Mining & Energy Value Chain, while Henry Tanoto has been appointed the VPD of TAM and also Deputy DIC of Astra Motor II (Toyota) excluding TSO. Meanwhile, DIC of Astra Infrastructure, Logistic & Information Technology Bambang Widjanarko Santoso has also been appointed DIC of Astra World.

Bambang Widjanarko Santoso

Djoko Pranoto

Henry Tanoto


PAMA Invests in Human CapitalA significant investment in developing its frontline employees has played a key role in a comprehensive restructuring programme at Pamapersada Nusantara (PAMA), which has seen it become one of the leading coal mining contractors in the world with an estimated revenue in 2015 of Rp34.38 trillion (US$2.56 billion).

As Indonesia’s leading coal contractor producing over 100 million tonnes and with a 45% market share, PAMA needed to ensure that it continued to outperform. Over a period of three years, PAMA focused on boosting the training and performance of its frontline employees, initiating a series of programmes ranging from upgrading operator skills and qualifications to instilling a culture of discipline, innovation and safety consciousness.

“Our frontline operators are PAMA’s most strategic asset,” explained PAMA Operational Training & Services Department Head Priyo Hadi, “and we wished to enhance their competency through training to support production capacity.”

New standards of competency and certification were introduced as well as a re-engineering of PAMA’s remuneration and reward system to support a more competitive environment and stimulate motivation. These reforms proved key drivers of an increase in operator productivity and a decrease in opportunity loss through incident.

Teams from PAMA’s Operations, Human Capital and Service, and Corporate Information Systems divisions were all involved in the initiative.

“It was a collaborative effort with everyone committed to accelerating the process of creating a learning, development and innovation culture while maintaining our Growth Sustainability Performance targets,” said PAMA Engineering & Operation Deputy Director Yusuf Ahmad.

PAMA’s efforts paid off and by the end of 2014, coal production volumes had increased and average productivity improved by 5%. There was also peer recognition, which included an award from the Indonesian Professional Certification Authority, acknowledgement by the Ministry of Manpower of PAMA’s competency standards, and a Sustainability Award from Immersive Technologies.

“Our frontline employees now have the highest competency as well as more opportunity to realize their potential. Indeed, some of PAMA’s top management began as operators and serve as inspirational role models of what is achievable,” concluded Priyo Hadi.

It was a collaborative effort with everyone committed to accelerating the process of

creating a learning, development and innovation culture while maintaining our

Growth Sustainability Performance targets

PAMA Engineering & Operation Deputy Director

Yusuf Ahmad

36

Enterprising Matters

Please address your comments or suggestions regarding Thistle to the Thistle Editor, c/0 Group Corporate Affairs,

Jardine Matheson Limited, 48/F Jardine House, Central, Hong Kong [email protected]

Thistle is published by Jardine Matheson Limited on behalf of the Jardine Matheson Group.

www.jardines.com

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