Astra`s Automotive Business in Top Gear
Transcription
Astra`s Automotive Business in Top Gear
vol.2 2011 Thistle The Magazine of Jardine Matheson Jardine Matheson’s Record Results Reflect Outstanding Performances > page 3 Pride in Performance Shines Across the Group > page 4 Topping-out of Gammon Joint Venture Tamar Development Project > page 9 Astra’s Automotive Business in Top Gear Record Performances 2010 was another record year for the Group as reflected in our annual results, which were underpinned by strong performances from most of our businesses. 2010 also marked the end of a very successful decade of consistent growth for the Group, one in which our ‘Bold’ approach paid off and our businesses prospered through often challenging times. Many of our 2011 Pride in Performance (PIP) Award winners set out on pages 4 and 5, also demonstrated a ‘Bold’ approach, which enabled them to achieve record performances in their respective businesses. They, along with all the other impressive entries for the awards programme, which this year is celebrating its 10th anniversary, showcase the common characteristics or ‘Elements’ that enable businesses to succeed and set an example to which all our businesses can aspire. Astra is another Group business which has achieved record performances in recent years. As the feature on its automotive interests on pages 15-19 reflects, the group is well placed to take advantage of Indonesia’s strong economic growth and achieve its goals of maintaining market leadership while providing its customers and business partners with the highest quality services. Anthony Nightingale 2 Jardine Matheson’s Record Results Reflect Outstanding Performances Pride in Performance Shines Across the Group China Forum … Leadership 8 Topping-out of Gammon Joint Venture Tamar Development Project Revamp of Wellcome Stores in Hong Kong Attracts More Shoppers JEC Expertise Wins Contracts in Hong Kong and the Philippines Mannings Own Skincare Brands Take Off in Mainland China … Feature 14 Astra’s Automotive Business in Top Gear 17 Performance 20 20 Top Awards for Astra Pizza Hut Hong Kong App Makes Big Impact JOS Achieves More Partnership Awards China Travel Industry Accolades for Mandarin Oriental Hotels … Spirit 26 Walk Up Jardine House Raises Record Amount for MINDSET Jardine Ambassadors and MINDSET Place Residents Spread Festive Cheer Group Teams Hike for Hospice Hong Kong IKEA Staff Join Forces in SPREE Campaign … People 32 34 Team-Building and Leadership for Jardine Matheson Vietnam Dairy Farm Graduates Aspire to Success Successive Jocks’ Pot Victory for Jardines Enterprise at Work … Bar Boulud, Mandarin Oriental Hyde Park, London CONTENTS At the Centre 2 Jardine Matheson’s Record Results Reflect Outstanding Performances AT THE CENTRE The positive economic environment seen in Asia throughout 2010 underpinned strong performances from most of the Jardine Matheson Group’s businesses, enabling it to produce a record result for the year. The contribution from Southeast Asia represented 56% of the Group’s underlying profit for the year, compared with 41% from Greater China, largely due to outstanding results from Astra in Indonesia. and room rates. Jardine Cycle & Carriage’s earnings reflected the record results achieved by Astra. The Group achieved an underlying profit in 2010 of US$1,364 million, an increase of 34%. Underlying earnings per share were 33% higher at US$3.80 and revenue, including 100% from associates, was US$47 billion, compared with US$36 billion in 2009. During the period, the Group’s gross revenues doubled to US$47 billion, while underlying profit went from US$171 million in 2001 to US$1,364 million in 2010. Total equity increased from US$7 billion to US$32 billion. Jardine Pacific saw good performances across its operations, leading to another record profit. A strong first half enabled Jardine Motors to produce an excellent result, while Jardine Lloyd Thompson made satisfying all round progress. “These results demonstrate the ability of our businesses to prosper through often challenging times. So what approach did they take ten years ago? To put it simply, they were Bold,” said Mr Nightingale. Hongkong Land’s impressive result included notable gains on completion of residential development projects. Dairy Farm achieved higher earnings in most of its banners, while Mandarin Oriental saw profits start to recover following improvements in occupancy Being Bold In his annual address to Group senior executives, Managing Director Anthony Nightingale looked back at what has been a very successful decade for the Group and the factors that have produced consistent profit growth. Businesses were sold that did not fit the strategic vision; others were refocused on East Asia and steadily built across the region; specialist offerings were taken to global markets; while a number of businesses built on their proven expertise and branched into areas where new revenue streams would boost earnings. Mr Nightingale cited specific examples. These included Jardine Pacific that had doubled its profits by concentrating on areas where it could see the greatest opportunities for profitable growth in East Asia; Hongkong Land, which built on its reputation for quality and expanded its commercial property activities in Singapore, while also developing profitably high-end residential properties; and Jardine Cycle & Carriage, which acquired an interest in Astra when seeking additional investment opportunities, and helped it to achieve record-breaking performances. In conclusion, Mr Nightingale said that the result of being Bold is a set of Group companies that are more focused, more versatile and more profitable, and well positioned for the future. “Across the Group, we understand our customers and our markets. We are concentrating on what we do well and avoiding distractions. We have the ability to identify and nurture the right people with the skills to build our businesses; and we are ready to take calculated risks and make bold decisions.” Group Chairman at London Events with China’s Vice Premier Jardine Matheson Group Chairman Sir Henry Keswick attended two dinners during the visit to London of China’s Vice Premier Li Keqiang. The first was hosted by The Chancellor of the Exchequer, The Rt Hon George Osborne, at 11 Downing St and the second, a banquet organized by the China British Business Council at the Royal Courts of Justice. At both dinners, Sir Henry met with the Vice Premier and with MOFCOM Vice-Minister Gao Hucheng. Right: Jardine Matheson Group Chairman Sir Henry Keswick with China’s Vice Premier Li Keqiang. At the Centre Jardine Matheson’s Record Results Reflect Outstanding Performances Pride in Performance Shines Across the Group IKEA Hong Kong Marketing Revolution Wins PIP Awards Grand Prize IKEA Hong Kong – Marketing Excellence and Grand Prize Winner Lloyd & Partners – Customer Focus Jardine Lloyd Thompson – Successful New Venture IKEA Hong Kong, the Marketing Excellence category winner, won the Pride in Performance (PIP) Awards Grand Prize for 2011 for its implementation of a marketing revolution which has seen it become the fastest growing IKEA business globally. After looking at the business through the eyes of their customers, the IKEA team successfully mobilized its staff behind its mission of marketing being everyone’s responsibility. A targeted advertising campaign for the opening of its Kowloon Bay store highlighted IKEA’s low prices and family friendly stores. Within a month of the campaign launch, the new store had attracted nearly 400,000 visitors. In total, IKEA experienced over one million additional store visits in 2010 compared to 2009 and recorded an 83% increase in underlying PBIT of US$21 million. JLT Subsidiary Puts Customer’s Needs First MCL Land – Innovation and Creativity Mannings Hong Kong – Business Outperformance Jardine Lloyd Thompson subsidiary and wholesale insurance broker Lloyd & Partners Ltd (LPL) had its strong relationship with Transocean, the world’s largest offshore drilling contractor, tested in April 2010 when Transocean’s semi-submersible drilling rig, Deepwater Horizon, sank in the Gulf of Mexico with the loss of 11 crew. An insurance claim for US$560 million was triggered. The LPL team pulled out all the stops and completed the complex claims process in a record-breaking 11 working days. JLT London Makes Cyber Challenge an Opportunity Rather than ignore the impact of the Internet on its employee benefits (EB) business, Jardine Lloyd Thompson (JLT) embraced the cyber challenge with a new venture – an online benefits platform. BenPal, which was launched in 2009, was a runaway success, winning new clients and transforming JLT’s EB business. BenPal’s superior technology has enhanced JLT’s competitive edge, widened its revenue base, increased sales and lowered operating costs. MCL Land Turns Waterfall Gardens into Windfall A winning combination of a unique product, innovative marketing and prudent cost management resulted in MCL Land hitting the jackpot with its luxury development, Waterfall Gardens in Singapore. The marketing team pre-launched the project in Indonesia and Hong Kong, achieving 85% pre-sales with the remaining 15% snapped up by local buyers. While Waterfall Gardens had its share of major challenges, the team’s can-do attitude ensured that the project stayed on track, surpassing its original tender budget nine-fold. Mannings Hong Kong Scales New Heights Mannings Hong Kong has proved that passion, innovation and entrepreneurship can deliver dramatic growth even in a mature market during tough times. Determined to outperform, Mannings set out a list of initiatives in its 2008-2010 business plan. This has since delivered a 58% increase in sales and an annual EBIT growth of 18% over the plan period. At the Centre PIP Anniversary Publication Defines Success A decade after the Pride in Performance Awards programme was launched to identify and reward outstanding performances across the Group, a special publication has been produced to recognize its achievements and celebrate its success. “Through PIP, a platform has been created to showcase and demonstrate how a strong set of values can instil pride, while key business elements can underpin outstanding performance,” explained Group Managing Director Anthony Nightingale. “In essence, PIP meets the intent of Jardine Matheson which is to stimulate the growth of dynamic enterprises where people take pride in performance.” To date, the PIP Awards have attracted 213 entries. The entrants have represented diverse industry sectors, operated in different cultural and economic environments and served very different customer groups. Yet within their PIP submissions can be identified five common characteristics or ‘Elements’ that enabled them to succeed. These elements are: • Striving for and attaining new performance heights; • Innovating by going beyond boundaries; • Collaborating as a team, sharing values and learning from each other; • Solving problems and overcoming obstacles with tenacity; and • Connecting with customers and understanding their needs. The PIP 10th anniversary publication gives examples of PIP Award winners who have demonstrated each of the five Elements and outlines the essential qualities which form them. Further information on the PIP Awards and the publication is available at www.jardines.com/news-and-events/ pip-awards.html Centre: Jardine Matheson Group Managing Director Anthony Nightingale celebrates with the prize winners of the 2011 PIP Awards. Group Chairman Leaves His Mark at First Giant Hypermarket Sites in Sarawak Jardine Matheson Group Chairman Sir Henry Keswick left his mark when he visited the sites of two Giant hypermarkets, which are currently under construction in Kuching and are Dairy Farm’s first in Sarawak, Malaysia. At the site of the second new Giant Hypermarket in Tabuan Jaya, Sir Henry and Lady Keswick (centre) are assisted with making imprints of their hands to be mounted at the entrance to the new store. Sir Henry, who was accompanied by Lady Keswick and a team comprising senior management from Jardine Matheson and Dairy Farm, was welcomed with performances by local tribes at the Kota Padawan site. Sir Henry and Lady Keswick were invited to plant local Belian and Mahogany trees at the site, which were presented to them by the Deputy Chief Minister of Sarawak, Datuk Patinggi Tan Sri Alfred Jabu Numbang. Group Chairman Meets China’s Deputy Premier in Beijing Jardine Matheson Group Chairman Sir Henry Keswick met with China’s Deputy Premier Wang Qishan during his annual visit to the country, which this year concentrated on important meetings in Beijing. Left: Jardine Matheson Group Chairman Sir Henry Keswick with China’s Deputy Premier Wang Qishan during his four-day visit to Beijing. Mr Wang, who met Sir Henry in the Ziguange Pavilion of the State Council Compound in Zhongnanhai, said he was impressed by Jardines’ investment plans and would welcome the Group expanding its activities in China. In response, Sir Henry outlined Jardines’ strong and growing presence there and said that it was now the Group’s priority market for development. During his four-day visit to Beijing, Sir Henry took the opportunity to meet the new Chairman of the State Council Hong Kong and Macao Affairs Office, Wang Guangya, Vice Minister of MOFCOM Zhang Yaoping, the Chairman of CCPIT, Wan Jifei, and many other government and business leaders. Lord Powell Becomes Ambassador for British Business Matheson & Co Director Lord Powell of Bayswater has been nominated as an Ambassador for British Business by UK Prime Minister David Cameron. The Ambassadors are charged with promoting British business in foreign markets and encouraging overseas companies to invest in Britain. Lord Powell also serves as Co-Chairman of the Asia Task Force with Vince Cable, Secretary of State for Business, Innovation and Skills. Left: Lord Powell and (second left) UK Prime Minister David Cameron meeting with Chinese Premier Wen Jiabao during Mr Cameron’s first official visit to China last year. Dairy Farm Expands Procurement Business in Mainland China As Dairy Farm continues to expand its retail formats in over 5,300 outlets across Asia and mainland China, sourcing the best quality goods at the best prices has become more important than ever in an increasingly competitive marketplace. For over a decade now, mainland China has been one of the largest sources of goods for Dairy Farm. Last year, the group’s companies purchased over US$1 billion worth of products from mainland China including grocery, fresh produce, non-food and general merchandise items for its hypermarkets, supermarkets, health and beauty stores and convenience stores. Since 2008, most of the general merchandise procurement has been co-ordinated from Guangzhou by the Dairy Farm Group Representative Office, which has the main function of liasing between suppliers and Dairy Farm buyers and, most importantly, searching for new general merchandise products and suppliers in China. “Guangzhou is an ideal location because of the easy air, boat and train connections for Dairy Farm buyers who come from all over Asia and for our China suppliers,” explained Dairy Farm Group Procurement Manager Frederic Shu. Situated in the heart of the city, the office has two showrooms, one displaying the Corporate Brand products and the other, new innovative products and promotional items sourced across China. “We are currently dealing with over 500 suppliers across China,” said Mr Shu. “Last year, our business units purchased 60% from Guangdong Province and 33% from Zhejiang region, which includes the Shanghai area, as well as products from Xiamen, Fuzhou, Hebei and Shandong provinces. We are also exploring new suppliers in the north and inland regions of China.” Over the last three years, the office has identified more than 5,400 new products for Dairy Farm in order to help the group maintain leadership in its various markets. “For the basic core ranges, we look for items that can compete well. For ranges that are unique to the Dairy Farm own-label brands, we look for a point of difference, which will give us an edge over our competitors,” explained Merchandising Manager Justin Venter. Ensuring that items meet Dairy Farm standards and are suitable for the individual markets in which it operates can often be challenging. “For a start, each country has a different standard requirement, different customer profile and different economic level,” said Mr Venter. “We also have to be certain we are up to date with the health and safety requirements of each country.” While rising standards in China have led to better quality products, prices have also gone up in recent years due to increases in the costs of raw materials, labour and transportation. “Because the prices tend to fluctuate rapidly, timely communication between the procurement office and buyers across the group is essential to help them make decisions quickly and ensure that they get the best deals,” said Frederic Shu. In spite of the changing market, China remains unrivalled in terms of overall quality and price, while also offering the advantages of faster production lead and delivery times. “Combined group procurement and buying synergies are vital to a multinational business such as Dairy Farm and we see our role in China expanding as the group continues to grow, especially in the areas of hardware, homeware, leisurewear and textiles,” said Mr Shu. At the Centre The team at the Dairy Farm Group’s Representative Office liaises with suppliers throughout mainland China to enable Dairy Farm Group companies to obtain best prices. Topping-out of Gammon Joint Venture Tamar Development Project LEADERSHIP The Tamar Development Project in Hong Kong, which is being constructed by a Gammon/Hip Hing Construction joint venture, has held a topping-out ceremony to mark the completion of the building structure. The project, which is scheduled for completion this year, includes the design and construction of a new Hong Kong Government Headquarters, Legislative Council Complex, landscaped open space and ancillary facilities. It will also provide a vast, central civic space, lush greenery and improved ventilation that will benefit the whole of Central District. Environmentally friendly and energy-efficient features range from waste recycling to a sunlight system and seawater cooling. “We are expecting to deliver an iconic and benchmark complex that will grace the Hong Kong skyline,” said Gammon Chief Executive Thomas Ho. Photo opposite: Officiating at the Tamar Development Project topping-out ceremony are, from left: Patrick Lam, Executive Director, NWS Holdings; Leung Chun-ying, Convenor, Non-official Members of the Executive Council; Henry Tang, Chief Secretary for Administration; Donald Tsang, HKSAR Chief Executive; Tsang Yok-sing, President, Legislative Council; and Adam Keswick, Director, Jardine Matheson. The Tamar Development Project, which is being constructed by a Gammon/Hip Hing Construction joint venture. Revamp of Wellcome Stores in Hong Kong Attracts More Shoppers Wellcome Hong Kong has been revamping some of its existing formats to meet changes in customers’ needs and expectations. “We strategically remodel our superstores to cater for changing customer needs, to scale-up brand image and, more importantly, to boost sales,” explained Wellcome Hong Kong Chief Executive Officer Choo Peng Chee. “It’s been a combined effort by teams from our Operations, Projects, Merchandising, Fresh and Marketing units.” The initiative has involved a remodelling of its superstores with particular regard to the shopping environment and merchandise. So far seven Wellcome superstores have been remodelled, with the scheme being gradually rolled out to other stores. The first revamped store at Sunshine City in Ma On Shan successfully improved sales by a significant margin. The store now features the popular bakery chain ‘Bread Talk’ from Singapore, local fresh pork and a significantly expanded and repackaged selection of sushi. In addition, over 3,000 kinds of specialized products from around the world have been introduced. Wellcome Hong Kong’s revamped superstores have resulted in an increase in sales and received an enthusiastic response from customers. Leadership Topping-out of Gammon Joint Venture Tamar Development Project JEC Expertise Wins Contracts in Hong Kong and the Philippines Jardine Engineering Corporation’s (JEC) expertise in sewage treatment has won it several new contracts in Hong Kong and the Philippines. In a joint venture in Hong Kong, JEC is to upgrade preliminary sewage treatment facilities at North Point, Wan Chai East and Central in a project awarded by the Drainage Services Department. The upgrade will include the electrical and mechanical facilities as well as the supply and installation of major equipment. The contract is part of Harbour Area Treatment Scheme Stage 2A to provide preliminary treatment of sewage from the northern parts of Hong Kong Island before it is discharged to deep tunnels, currently under construction by Gammon, destined for Stonecutters Island. In the Philippines, JEC has been awarded two new contracts in Jardine Engineering Corporation has won several new sewage treatment contracts in Hong Kong and the Philippines. partnership with Kingsford and FF Cruz. Both are at tertiary sewage treatment facilities located in Taguig City and involve the design, supply, construction, installation and testing of the wastewater treatment plants. “JEC is pleased to be able to contribute our environmental engineering expertise to support these new projects,” said JEC Chief Executive Alex Newbigging. In another area of expertise, JEC has also been awarded a contract in Hong Kong for the construction of a top tier data centre to host ‘mission critical’ computer systems and components in an industrial building in Tsuen Wan. The project includes the supply and installation of all electrical and mechanical services to support the operation of the new data centre including uninterrupted and stand-by power supplies, precision controlled air-conditioning plants and security and automation systems. Refurbishment Preserves History of Iconic Lobby The refurbishment of Mandarin Oriental, Bangkok’s main lobby and reception area has preserved the legendary soul of the 135-year-old hotel, while combining it with a modern interpretation of traditional themes. The majestic floor-to-ceiling windows that face towards the Chao Phraya River, the two royal elephants guarding the lift landing and the historical ‘temple bell’ chandeliers all remain as before. New upholstery, carpeting and furniture have been installed and during evening hours, a lighting system highlights the vibrant new colour scheme of burnt sepia, crimson reds and cool grays. “The refurbishment will ensure that the lobby at Mandarin Oriental, Bangkok continues to be a landmark in the city,” said General Manager Jan Goessing. The refurbishment of Mandarin Oriental, Bangkok’s main lobby and reception area retains the character of its long history while creating a more contemporary look. Antah Schindler in Malaysia has held a media briefing on its Schindler 3300 AP elevator and how it is redefining the concept of modern living, reflecting the global trend of elevator usage in residences and lowrise commercial buildings. Schindler has been involved in many iconic buildings in Malaysia including most recently, the installation of the Schindler 3300 AP in each of the 29 luxury villas in Duta Kinrara, a resort style residential development in Bandar Kinrara, Puchong. From left: Celebrity interior designer Eric Leong, Antah Schindler Managing Director Noky Wong and C K Ang, Director of Pilot Group, the Developer of Duta Kinrara, with a Schindler 3300 AP elevator touch sensitive panel. “Residential elevators are increasingly recognized as an investment that adds value and mobility to a home,” Antah Schindler Sdn Bhd Managing Director Noky Wong told the gathering. “The Schindler 3300 AP is ingeniously designed and flexible to install. It has many inbuilt safety features and its gearless motor saves 40% energy compared to a conventional geared motor.” Malaysia’s well-known celebrity interior designer Eric Leong also shared his insights on new living trends for modern homes with the audience. “Having an elevator at home is the future trend of modern residential living,” said Mr Leong. Mannings Own Skincare Brands Take Off in Mainland China Last year’s launch of four new skincare product lines in Mannings own corporate brand range to meet mainland China consumers’ needs has resulted in a big increase in sales. profit contributor. Compared to the previous six-month period, total sales of Mannings skincare products rose two and a half times in dollar value. In the 2010 winter season, Mannings skincare corporate brand jumped from its previous ranking of six to become the number two skincare brand in Mannings China and the leading gross “This success represents true team work between our business unit and corporate brand teams,” said Mannings China Chief Executive Officer Jenny Lee. Manning own skincare brands have proved to be a big success in mainland China. Milestone for MCL Land Development Hongkong Land subsidiary MCL Land has achieved a significant milestone for its latest residential development in Singapore with the granting of the temporary occupation permit to mark completion of the main construction works. The Peak@Balmeg is a condominium development of 180 units, all of which are already sold. Located between Kent Ridge and West Coast parks, the property stands on an elevated site overlooking the sea and includes facilities such as an infinity pool, deck and garden. MCL Land’s latest residential development in Singapore, The Peak@Balmeg, offers a seaside location, which combines seclusion with convenience and security. Leadership 11 Schindler Lifts Elevate Modern Luxury Living in Malaysia Big Dairy Farm Presence in New Singapore Mall Several Dairy Farm brands have opened in the Nex Mall in Singapore, a new shopping hub in the centre of the city with over 360 premium tenants. They include a Cold Storage supermarket, Guardian Health & Beauty store and two 7-Elevens. Spanning more than 11,000 sq. ft, the latest Cold Storage supermarket is a one-stop shop for grocery and household needs and incorporates a ‘Marche Provence’ bakery. Guardian Nex includes a dedicated Men’s Care Zone and in a first for Guardian, a patient care counselling room where customers can be assured of privacy when discussing their health needs. Guardian Health & Beauty Chief Executive Officer Pierre Olivier Deplanck explains the key features of Guardian’s concept store in the new Nex Mall in Singapore to journalists. 7-Eleven Singapore has opened two stores at Nex to cater for different consumer groups. One targets moviegoers and shoppers while the other aims to serve commuters moving through the mall. Hongkong Land to Invest in Cambodian Property Market Hongkong Land plans to invest approximately US$36 million in the Cambodian property market following an agreement to purchase four prime freehold sites in Phnom Penh and a leasehold site in Siem Reap. The sites are currently owned by JSM Indochina Limited. All the land within the portfolio offers development opportunities. “We see this as an excellent opportunity for Hongkong Land to enter the Cambodian property market, which we believe offers great growth potential,” said Hongkong Land South Asia Executive Director Robert Garman. “We look forward to developing our business here over the longer term.” Fresh Look at 7-Eleven Singapore 7-Eleven Singapore has been applying a fresh look to its stores with a refit exercise aimed at enhancing the overall experience of shoppers. The refurbishment involves both an interior and exterior makeover of stores to create a contemporary and bright environment for 7-Eleven customers. The new façade features visuals of 7-Eleven proprietary products to emphasize the wide array of items on offer. Inside, wider aisles and well-planned product placement further enhance the shopping experience. “The improved shopping ambience enables us to meet the evolving needs of consumers as we reinforce further our position as the leading retailer of convenience in Singapore,” said 7-Eleven Singapore Chief Executive Officer Richard Seah. The fresh look of one of the new refurbished 7-Eleven Singapore stores. Jardine Lloyd Thompson (JLT) has restructured its operations in Japan with the goal of ensuring greater responsiveness to client needs as well as to facilitate the independent operations of each business unit. Through an equity transfer arrangement, JLT has established JLT Holdings Japan. Under this new structure, insurance agency operations will be conducted by JLT Risk Services Japan (formerly Jardine Lloyd Thompson Limited), while JLT Japan (formerly JLT Re Japan) will conduct the insurance and reinsurance broking businesses. JLT Risk Services Japan will draw on 26 years of experience to provide risk management advice and insurance agency services, while JLT Japan provides insurance broking solutions on domestic and overseas insurance programmes and reinsurance broking services. “The restructured operations will also harness the JLT Group’s strengths in overseas markets to serve Japanese companies abroad,” said President & Chief Executive Officer of JLT Holdings Japan, Masato Ata. Masato Ata (centre) leads the team at JLT Japan. THACO Scores a First with New Kia Showroom Truong Hai Auto Corporation (THACO), in which Jardine Cycle & Carriage holds a 30% interest, has scored a first with the opening of its Kia Phu My Hung showroom in Ho Chi Minh City. The facility is the first showroom in Vietnam and only the second in the world to be branded with the new global identity of Kia Motors, which was introduced last year. During the opening of the showroom, which included 3D movies and laser lights, the all new Kia Optima K5 was introduced with the message ‘THACO Kia New Class – New feeling’. “The emphasis at the Kia Phu My Hung showroom is on the high standard of the service workshop and the professional and dedicated staff,” explained THACO Chairman Tran Ba Duong. “Kia’s new corporate identity sets higher standards worldwide and here in Vietnam raises the benchmark for our customers in terms of quality and The opening of Truong Hai Auto Corporation’s Kia Phu My Hung showroom convenience.” in Ho Chi Minh City is expected to raise the benchmark for customers in terms of quality and convenience. Jardine Pacific Acquires Full Interest in Pizza Hut Vietnam Jardine Pacific has increased its stake in Pizza Hut Vietnam from 25% to 100% by acquiring the interests of its joint venture partner. Assistant to Jardine Matheson Group Managing Director Anthony Nightingale. The acquisition represents a further commitment by Jardine Pacific to Yum! Brands and its Pizza Hut operations. Through the Jardine Restaurant Group, Jardine Pacific also operates Pizza Hut in Hong Kong, Macau and Taiwan as well as KFC in Taiwan. Archie Keswick has been appointed Chief Executive Officer of Pizza Hut Vietnam. His previous role as General Manager of Zung Fu in Macau has been taken up by Priscilla Wu, formerly Executive Jardine Pacific’s full acquisition of Pizza Hut Vietnam includes this restaurant at DeTham. Leadership 13 Jardine Lloyd Thompson Restructures Japan Operations Astra’s Automotive Business in Top Gear FEATURE Feature 15 Astra’s Automotive Business in Top Gear As one of Indonesia’s leading groups, Astra is well placed to take advantage of the country’s strong economic growth. This is particularly so in the automotive sector where Astra, as Southeast Asia’s largest independent automotive group, is the foremost provider of a full range of automobile and motorcycle products. Astra, which was established in 1957 and listed on the Indonesia Stock Exchange in 1990, is currently engaged in five business lines in addition to its automotive interests. These comprise Financial Services; Heavy Equipment and Mining; Agribusiness; Information Technology; and Infrastructure and Logistics. In the Indonesian automotive sector last year, Astra’s businesses accounted for 56% of all the new cars sold and 46% of all the new motorcycles sold in the country. This market leading position is strengthened at each step of the value chain through direct ownership of manufacturing of vehicles and parts, distribution, dealerships, after-sales and service, financing and insurance, as well as through a network of quality suppliers. Astra has established international partnerships with Toyota, Daihatsu, Isuzu, UD Trucks, Peugeot and BMW in the automobile segment and with Honda in the motorcycle segment. In the automotive component business too, Astra enjoys relationships with many globally renowned companies. “Our partnerships provide us with access to the latest technology, proven production design models and quality products. They also play an important role in the group’s constant striving for improvement in manufacturing quality,” explained Astra President Director Prijono Sugiarto. products and services also gives customers the opportunity to get the right product, at the right time and at the right price. Market confidence rebounded in 2010 following the slowdown precipitated by the global financial crisis. The Indonesian economy grew by 6%, while the wholesale markets for motorcars and motorcycles experienced 57% and 26% growth, respectively. Overall, the contribution to net income from Astra’s automotive businesses rose by 55% to Rp7.1 trillion (US$832 million). “The future of vehicle sales in 2011 and beyond rests on a number of factors,” said Mr Sugiarto. “Of most concern is the uncertainty surrounding planned regulatory changes. Astra, nevertheless, remains confident both in the short and longer term as car ownership density in Indonesia is still low in global terms.” The provision of financing support through Astra’s various financial Astra, which has its headquarters in Jakarta, is one of Indonesia’s leading businesses and Southeast Asia’s largest independent automotive group. Driving Ahead with Astra Astra’s leadership position in the automotive market in Indonesia is defined by its manufacturing, distribution and sales businesses in partnership with prominent international marques. In recent years, its automobile and motorcycle manufacturing operations have experienced rapid growth. Currently Astra has stakes in some seven manufacturing companies. These include PT Astra Daihatsu Motor (ADM), which is the manufacturer of Daihatsu compact cars and Toyota vehicles in Indonesia for both the local and overseas markets; PT Astra Honda Motor (AHM), which dominates Indonesia’s motorcycle market in both the manufacturing and sales segments; and PT Astra Otoparts Tbk, which manufactures and distributes components for both cars and motorcycles. Distribution is a core competency of Astra and, supported by the largest sales and distribution network across Indonesia, the group is able to serve the full range of market segments and maintain its leadership position in the face of aggressive competition. Motor Vehicles Toyota PT Toyota-Astra Motor (TAM), a joint venture between Astra and Toyota Motor Corporation, is the sole agent for Toyota vehicles sold in Indonesia through five main dealers. Of these, Auto2000 is the largest with 145 branches, which together with their sub-dealers account for nearly 80% of Toyota’s sales volume in Indonesia. Through this extensive network, Auto2000 provides sales and after-sales services as well as selling Toyota spare parts. “2010 was a good year for Toyota with sales reflecting the rebounding confidence in the market-place,” said TAM President Director Johnny Darmawan. “A new sales record of 280,989 vehicles, up 50.3% from 2009, was aided by stable and favourable interest rates.” To maintain its leading position and attract new customers, TAM will continue to broaden its product range, while the Avanza, Toyota’s highest selling car in 2010 with 50% of sales, will be supported by product refreshment and enhanced marketing. Astra’s automotive business relies on strong working relationships with principals such as Toyota and Daihatsu. “We will also focus on giving our customers a ‘Best Total Ownership Experience’ through operational excellence at all levels and expand our outlets and infrastructure, with the goal of strengthening market penetration,” said Mr Darmawan. PT Toyota-Astra Motor (TAM), which is the sole agent for Toyota vehicles sold in Indonesia, achieved record-breaking sales in 2010. Daihatsu As well as being the manufacturer of Daihatsu and Toyota vehicles and components in Indonesia, PT Astra Daihatsu Motor (ADM), in which Astra has a 32% interest, is also the sole agent for Daihatsu vehicles in Indonesia. Last October ADM reached a production milestone of two million units manufactured. This was the culmination of a challenging year when ADM was simultaneously manufacturing at 50% above normal capacity while preparing to expand production further. This was achieved through a shift doubling which saw capacity increase from 211,000 vehicles per annum to an output in 2010 of 320,000 units serving domestic and export markets. ADM also strengthened its product line-up by introducing several special editions – New Terios, Luxio Prestige and Sirion Femme and Drift. Feature 17 “Planning for this included the co-ordination of a network of more than 1,000 local suppliers in addition to plant expansion,” explained ADM President Director Sudirman M Rusdi. In 2010, Daihatsu achieved a record 118,554 vehicles sold, a 53% increase, thus maintaining its second place market share gained in 2009. Astra distributes Daihatsu cars through its Daihatsu Sales Operation, by way of dealer networks and its own growing network of 179 outlets. With an expanded dedicated network of 86 outlets, Isuzu aims to be the number one truck seller in Indonesia. “We will compete by expanding coverage, offering high quality aftersales service and meeting customer expectations,” said IAMI Vice President Director Johannus Nangoi. Last year in line with commercial and industrial growth, sales of UD Trucks’ medium and heavy-duty vehicles grew rapidly with volumes increasing by 111% to reach the highest levels since the Asian financial crisis. The company also benefited from several government initiatives introduced during 2010 to lower tariffs on importing vehicles in complete knockdown (CKD) form. Isuzu PT Isuzu Astra Motor Indonesia (IAMI), in which Astra holds a 45% stake, is the sole agent and manufacturer of Isuzu in Indonesia and offers a range of diesel-engine vehicles from pick-ups to minibuses and dump trucks. Through the Isuzu Sales Operation (ISO), it is also the largest dealer of Isuzu commercial vehicles in Indonesia and sole distributor of its light commercial vehicles. Last year Isuzu benefitted from growth in the mining and agricultural sectors with overall sales increasing dramatically to over 24,000 units, up 58% from 2009. Commercial vehicle sales are also expected to rise following the launch of the new F-Series engine design, which boasts increased power, fuel efficiency and better emissions. 2010 was a record year for PT Astra Daihatsu Motor (ADM), which is the sole agent for Daihatsu vehicles in Indonesia. UD Trucks BMW PT Astra Multi Trucks (AMT) Indonesia, in which Astra has a 75% share, is the sole agent and manufacturer for UD Trucks, a rebranding of Nissan Diesel following a new strategic partnership between Nissan Diesel of Japan and Volvo AB of Sweden. Astra’s BMW Sales Operation (BSO) holds the dealership rights to sell BMW cars and provide after-sales services. As a result of last year’s favourable economic climate, BSO achieved the number two position in the premium car segment in Indonesia. Through UD Trucks Sales Operation, AMT Indonesia sells and distributes UD Trucks and delivers after-sales service through its 12 branches and a network of 13 dealerships. Toyota Sales Operation delivers the highest standards of sales and after-sales services to its customers through a large network of outlets. Peugeot PT Tjahja Sakti Motor (TSM), a wholly owned subsidiary of Astra, is the sole importer of Peugeot vehicles in Indonesia, which it distributes through Astra’s Peugeot Sales Operation. During 2010, sales quadrupled as a result of the strong rupiah and economy as well as targeted marketing efforts and a new product line-up, which included the Peugeot 3008 and 5008 series. Motorcycles Honda The manufacturing facilities of PT Astra Honda Motor (AHM), which is a 50:50 venture between Astra and Honda Motor Company Ltd, have a total production capacity of 3.5 million motorcycles a year supported by parts and training centres as well as tooling and die manufacturing plants. In distributing its products, AHM engages with several main dealers responsible for specific regions across Indonesia. Of these, Honda Sales Operation (HSO), an Astraowned business, is responsible for ten regions and accounts for 30% of all Honda sales in the country. HSO also offers integrated aftersales services and spare parts sales PT Astra Honda Motor (AHM) dominates Indonesia’s motorcycle market in both the manufacturing and sales segments. through its network franchise of almost 3,000 outlets. In 2010, AHM sold more than 3.4 million Honda motorbikes, surpassing its previous record sales of 2008 and up 27% from 2009. “A balanced product line, available production capacity, an aggressive marketing campaign, a strengthening domestic economy and effective distribution allowed AHM to maintain its leadership position,” said AHM Vice President Director Johannes Loman. The fastest growing segment was the AT (Automatic Transmission) scooter category where in 2010 AHM captured a market share of 46%, up from 38% in 2009. This was made possible by increasing plant capacity and launching several new and revamped models, including the Honda Scoopy, Honda PCX and Honda Vario Techno. Accelerated Growth from Auto Components Publicly-listed PT Astra Otoparts Tbk (AOP), in which Astra holds a 95.7% interest, aspires to be a worldclass auto parts supplier through its wholly-owned manufacturing operations and in partnership with leading global players. The company produces quality automotive components for a growing domestic market in both the original and replacement segments and for export to Asia, Oceania, the Middle East and Africa. Astra Otoparts strives to improve its manufacturing technology through strategic joint ventures and technical assistance agreements with reputable component manufacturers. Although 2010 was not easy for AOP due to changing market demand and pressures on costs, it turned out to be a profitable year with the company achieving a record net income of Rp 1.1 trillion (US$129 million), up 49%. PT Astra Otoparts’ (AOP) effective production processes and wide product range are aiding its rapid business growth in the quality “This was achieved automotive components sector. by taking advantage of market opportunities, meeting cost reduction programmes, strong a surge in customer demand and production performance and excellent maintaining cost competitiveness,” vendor management, enabled AOP to said AOP President Director Siswanto overcome the challenges of 2010.” Prawiroatmodjo. “This, together with Feature 19 Financial Services Add Value Astra’s automotive business generates a value chain which brings benefits across the group. This is particularly evident in the Heavy Equipment & Mining and Agribusiness sectors where increased output in line with the rapid commercial and industrial growth of the Indonesian economy has created rising demand for vehicles and components. As the number of vehicle owners increase, there is also more demand for financial services. During 2010, Astra Credit Companies, which has 58 branch offices and 46 service centres, financed the purchase of 144,000 units of cars; Toyota Astra Finance, a joint venture between Astra and Toyota Financial Service Corporation, financed the Astra’s financial services play a significant role in the value chain generated by its automotive business. purchase of 31,542 Toyota vehicles; and Federal International Finance financed the purchase of 1.4 million Honda motorcycles through its 121 branch offices and 357 points of sale across Indonesia. The value chain also extends into Astra Insurance, which through its best-selling product ‘Garda Oto’, is the market leader in automotive insurance in Indonesia backed by 26 branches and 12 service points. Enhancing Loyalty Through AstraWorld AstraWorld supports Astra’s automotive businesses by delivering added value services through Customer Relationship Management programmes designed to enhance customer loyalty. Membership provides numerous benefits including consultation services on new car purchases, insurance and financing. In addition to offering discounts and reward points, AstraWorld also sends customers reminders of routine vehicle maintenance checks and offers assistance in vehicle re-sales, ultimately creating two-way loyalty and mutual value. “Astra’s automotive business is built on strong customer trust and AstraWorld is a focal point in demonstrating our commitment to customer satisfaction,” said Chief of AstraWorld Sales Operations, Denny Suhardja. On Track for Future Development As Indonesia’s economy continues to grow and more infrastructure projects are initiated, especially road networks, Astra’s automotive business is poised to meet increasing consumer demand and achieve its goals of maintaining market leadership while providing its customers and business partners with the highest quality services. “Astra’s automotive business relies on strong working relationships with principals, supported by production capability to meet market demand, providing products at an affordable price, extensive distribution and after-sales service networks, and marketing excellence,” said Astra President Director Prijono Sugiarto. “These we will continue to enhance while also investing in developing our people in order to create further added value.” Astra’s automotive business is well placed for the future with its strong line-up of quality brands and effective production, distribution and financing capacity. Top Awards for Astra Performance Astra has carried off two top awards. The first from Hong Kong-based financial magazine Asiamoney was for ‘Overall Best Managed Company in Indonesia – Large Cap’. Determined by a survey based on Astra’s strong performance throughout 2010, the award was presented at Asiamoney’s second annual Indonesia awards ceremony in Jakarta. The second accolade recognized Astra as one of 20 ‘Dream Companies 2010’ at an event intended to show appreciation towards companies that have succeeded in developing a good corporate image. Astra was selected as the second ‘Dream Company’ after state gas and oil company Pertamina following a survey of 1,590 respondents in Jakarta, Bogor, Depok, Tangerang and Bekasi. Pizza Hut Hong Kong App Makes Big Impact Pizza Hut Hong Kong’s first iPhone/ iPad application (app) for its home delivery service clients has proved a huge success. “The Pizza Hut app is going to revolutionize the way Hong Kong people order their pizzas and will play a crucial role in our multiplechannel strategy,” said Mr Leong. Within a week of its launch, the app had already achieved sixth place in Hong Kong’s Apple App Store and topped the ‘Lifestyle’ category. Right: Gammon Construction Director M K Woo receives the 2010 Hong Kong Award for Environmental Excellence from HKSAR Chief Executive Donald Tsang. Gammon has received two awards for its ‘green’ strategy in the Construction Industry Sector of the 2010 Hong Kong Awards for Environmental Excellence. The group won a Gold Award for Hysan Place and a Certificate of Merit for the Tuen Mun Road eastern section reconstruction and improvement project. “Gammon’s green strategy incorporates the three core ideals of use wisely, waste less and emit less,” explained Chief Executive Thomas Ho. “These awards reaffirm our high standards and our goal to reduce the carbon footprint and work towards a future low-carbon economy.” “This was based solely on word of mouth promotion,” said Pizza Hut Hong Kong & Macau Marketing Director Richard Leong. “We are now looking into the opportunities offered by other mobile operating systems with a view to extending this innovative service in the near future.” Customers can use the app to place delivery and takeaway orders and access both the combo and à la carte Pizza Hut menus. They also enjoy great mobile online discounts. Last year Pizza Hut in the USA predicted that the mobile phone would soon account for 50% of future orders. Gammon Achieves Environmental Excellence Pizza Hut Hong Kong’s first iPhone/iPad application for its home delivery service is expected to revolutionize the way Hong Kong people order their pizzas. Hysan Place is the first Hong Kong building to be pre-certified at the highest Platinum level for the United States Green Building Council’s Leadership in Energy and Environmental Design standard (LEED), as well as the Hong Kong BEAM standard. During its construction, Gammon achieved a 10% reduction in water consumption with a recycled water system and implemented a construction waste disposal programme, which enabled the site to successfully recycle 86,000 tons of broken rock and 4,200 tons of broken concrete and steel beams. Similarly, 52% of the construction waste in the Tuen Mun Road project was reused. Performance 21 Top Awards for Astra JOS Achieves More Partnership Awards Hot Competition at Hactl Forklift and Pallet Building Championships There was hot competition at the 2011 International Forklift and Pallet Building Competition, which was organized by Hong Kong Air Cargo Terminals Limited (Hactl) for the fifth time and held at SuperTerminal 1. From left: JOS Malaysia Senior Business Manager Li Ching Toh; General Manager Yoon Kam Fei; General Sales Manager Kheng Thiang Chan; and General Manager Andrew Lee proudly display their partnership awards from Hewlett-Packard. 2010 was another fruitful year for Jardine OneSolution (JOS) in terms of new awards representing the enduring partnerships it holds with many of its vendors. In Hong Kong, JOS received IBM’s High Flyer of the Year and Top Contributor Award System Storage – Distributor awards, with the latter title celebrating JOS’ achievement as a top seller of Linear Tape-Open drives and storage volume products. Other accreditations won by the Hong Kong team included Outstanding Dealer Award from Lenovo (Hong Kong), which recognized JOS’ leadership as a Lenovo dealer and its outstanding performance in achieving year-on-year growth. Symantec also named JOS ‘FY10 Best Country Security Partner (HK)’ for its significant contribution towards sales growth. Elsewhere, JOS Malaysia was bestowed with a long list of awards from Hewlett-Packard. These included ESSN Technology Services – Top Services Contract Specialist Distributor and PSG Commercial Notebook – Top Corporate Reseller and honoured JOS’ 128% ‘over-achievement’ of vendor quota and a year-on-year sales growth of 176% respectively. Seven international airlines sent their top cargo-handling teams to the event, which produced higher standards than ever, with all teams demonstrating outstanding operational skills and safety awareness. Each competing team strived hard to demonstrate their skills at the 2011 International Forklift and Pallet Building Competition, which was organized by Hong Kong Air Cargo Terminals Limited (Hactl). “This event showcases best practices, brings together our industry partners from around the world and spreads the message of occupational safety,” said Hactl Managing Director Mark Whitehead, who revealed that growing interest in the competition may see it extended to more teams in the future. Air China Cargo was the overall champion of the competition with Hactl coming in as first runner-up followed by Nippon Cargo Airlines. Best Dealer Award for Tunas Daihatsu Outlet Tunas Daihatsu dealership in Soepomo, Jakarta carried off the prize for ‘The Best Dealer Outlet 2010’ at the National Daihatsu Dealer Convention. Selected from all Daihatsu dealerships throughout Indonesia, the award recognizes Tunas Daihatsu’s outlet in Soepomo, Jakarta as the best in terms of sales and customer service. “This has been made possible by years of focused and continous effort on providing excellent customer service,” said Tunas Daihatsu President Director Anton Leoman. Tunas Daihatsu celebrates the success of Tunas Daihatsu in Soepomo, Jakarta as the best Dealer Outlet 2010. 7-Eleven Singapore has been named one of the city-state’s top ten favourite brands for the second consecutive year. The survey, which was commissioned by Superbrands in the third quarter of 2010, ranked brands according to their popularity with consumers. 7-Eleven shared its Top Ten place with global names such as Google, Sony and Colgate. “We are proud to be one of the significant brands touching the lives of consumers in Singapore,” said 7-Eleven Singapore Chief Executive Officer Victor Chia. Singapore’s Top Ten Favourite Brands 2010 RANK BRAND RANK BRAND 1 Google 6 StarHub 2 Colgate 7 Sony 3 NTUC Fairprice 8 Yahoo 4 SingTel 9 7 Eleven 5 Straits Times 10 Nippon Source: Superbrands Survey conducted by The Nielsen Company during the period 3rd to 15th September 2010 with a sample size of 1603 people which was representative of the Singapore adult population Guardian Rewards Staff for Exceptional Service Centre: Guardian Malaysia Chief Operating Officer Loi Liang Tok and senior management with Customer Excellence Champions Khalid and Zulkifli. Guardian Malaysia’s annual nationwide Customer Care Campaign has once again recognized employees who have demonstrated outstanding customer service. level cashiers and sales assistants – met for the national Customer Care Competition held at Guardian Suria KLCC, which serves up to 5,000 customers a day. Judging in the on-the-job competition was based on the best customer service attributes. A shortlist of 14 candidates in each of two categories – management level supervisors and executives, and staff The winners will become Guardian’s customer care ambassadors and the catalyst for inculcating a serviceoriented culture within the group. New Look for Jardine Airport Services Ground Staff Frontline ground staff of Jardine Airport Services Limited at Hong Kong International Airport have a new look following the introduction of a brand new uniform. Designed by Johanna Ho, a Hong Kong fashion designer of international renown, the new collection is in blue, red and grey, utilizing the three corporate colours of Jardines for enhanced brand recognition. Details incorporated into the tailored outfits include dri-fit and breathable fabric to maximize functionality and comfort, and ties and scarves, which feature two colour pattern choices of red and grey for greater flexibility and personalization. Both patterns are derived from a vintage flying bird print created in 1946, the year Jardines began providing aviation services. Ground staff of Jardine Airport Services Limited show off their new uniforms. Performance 23 7-Eleven a Top Ten Brand in Singapore China Travel Industry Accolades for Mandarin Oriental Hotels Mandarin Oriental Hotel Group’s hotels in Sanya and Macau each carried off a major trophy at the fourth TTG China Travel Awards ceremony, which was held in Shanghai. Established by influential trade publishers, TTG Publishing, the Awards honour the most outstanding performers for their contribution to the travel industry in China. Mandarin Oriental, Sanya won the highly coveted ‘Best Resort in China’ award and Mandarin Oriental, Macau was named ‘Best New Hotel in Macau’ after more than 32,000 readers of TTG China, TTG Asia, TTGmice and TTGBTmice China cast their votes. Mandarin Oriental, Macau has also been listed among the ‘Top 10 Newly Opened Hotels in China’ at the sixth China Hotel Starlight Awards, which are often dubbed the ‘Oscars’ of the hospitality industry in China. “We are delighted to have been honoured in this way,” said Mandarin Oriental, Macau General Manager Martin Schnider. “The mission of Mandarin Oriental hotels worldwide is simple: to delight and satisfy each and every guest.” Earlier this year, Mandarin Oriental, Macau was named one of ‘The 25 Best Business Hotels in Greater China’ by Travel & Leisure magazine as well as the property ‘Most Worth Waiting For’ by Voyage. The two publications are among the most widely read travel magazines in mainland China. The Fresh Restaurant and Grill at Mandarin Oriental, Sanya, which has won the highly coveted ‘Best Resort in China’ award voted for by readers of TTG publications. Maxim’s Group Accredited as Manpower Developer Maxim’s Group has been accredited as a ‘Manpower Developer’ in the Employees Retraining Board Manpower Developer Award Scheme in Hong Kong. The Award Scheme aims to acknowledge organizations which have demonstrated outstanding accomplishments in manpower training and development in five key aspects – Leading a Learning Culture, Resources Planning, Training & Development System, Performance Management and Corporate Social Responsibility in Manpower Development. Left: Maxim’s Group General Manager, Finance, IT, Projects & Engineering, Group Human Resources Keith Siu receives the ‘Manpower Developer’ award from HKSAR Government Secretary for Labour and Welfare Matthew Cheung. Performance 25 Wellcome Hong Kong Wins Brand Awards Wellcome Hong Kong has won several awards, which reinforce its position as one of the SAR’s leading brands. The company carried off the ‘Hong Kong Proud Brand Award – Judging Panel Award (Department Store, Supermarket and Convenience Store Category)’ for the third consecutive year and for the first time was one of the top five brands out of 36 winners chosen from 21 categories. Organized by Ming Pao and The Chinese University of Hong Kong and co-organized by Hong Kong General Chamber of Commerce, the award scheme aims to recognize Hong Kong enterprises for their success in brand building. Meanwhile, Wellcome Hong Kong leapfrogged 39 places compared with its position a year ago to 146th place, the highest ranking among Hong Kong supermarket brands in Asia-Pacific’s Top 1000 Brands by Media Magazine. The Top 1000 Brands are the result of a survey of over 3,000 interviewed consumers from all the major countries in the region including Australia, China, Hong Kong, India, Japan, Korean, Malaysia, Singapore, Taiwan and Thailand. In another success and for the third consecutive year, Wellcome Hong Kong won ‘The Best for Home Award 10-11’ organized by the newspaper Take me Home. Over 60,000 readers voted for their favourite house brands and Wellcome scored highest in the retail category. Customers Vote for Dairy Farm Hong Kong’s ‘Passionate’ Staff For the third year running, Dairy Farm Hong Kong customers were invited to partake in a competition regarding the performance of staff in its Wellcome, Market Place by Jasons, ThreeSixty and Oliver’s The Delicatessen stores. The theme was to find the staff members who were the ‘Most Passionate’ about their work and the most attentive to customers’ needs. Customers were encouraged to cast their votes and letters of appreciation were also taken into account. There was an enthusiastic response and almost 60,000 votes were received in the four-week election period, a record high. Altogether 19 staff were named winners with one gaining almost 5,000 votes. Dairy Farm Hong Kong’s ‘Most Passionate’ staff celebrate their success in the annual competition to identify outstanding customer service. Walk Up Jardine House Raises Record Amount for MINDSET SPIRIT Spirit 27 On Mental Health from the Jardine Ambassadors Walk Up Jardine House Raises Record Amount for MINDSET The annual Walk Up Jardine House has raised a record HK$3.1 million for MINDSET. Over 500 Jardines’ executives, staff from all business units, business associates, families and their friends walked – or in some cases ran – up 49 floors, covering 947 steps, to reach the Penthouse of Jardine House at a height of 600 feet. Walk Up Jardine House 2011 consisted of individual and team races, as well as a mass walk following the awards presentation. The School Relay race featured ten teams from the schools participating in the MINDSET ‘Health in Mind’ programme. The fastest woman was Flora Cheung who won the women’s individual event in a time of seven minutes and 23 seconds. The fastest man was Lam Ka Ming who covered the distance in five minutes and 58 seconds. The Barrow Cup, which is awarded to the fastest male and female runners by age over 40 years old, was won by Cheung Yip Kei and Eva Kwan, respectively. The Group ‘Fancy Dress Award’ went to Hong Kong Air Cargo Terminals Limited (Hactl) and the fund raising awards made to the Jardines business unit and business associate that raised the highest amount were won by Dairy Farm and The Nielsen Company Hong Kong, respectively. For the second consecutive year, the Hong Kong Air Cargo Terminals Limited (Hactl) team won the Group ‘Fancy Dress Award’ at the Walk Up Jardine House event. Jardine Ambassadors and MINDSET Place Residents Spread Festive Cheer Jardine Ambassadors accompanied by service users from MINDSET Place brought festive cheer to 25 elderly live-alone people in Fanling when they presented them with a Chinese New Year gift bag of rice, oil, canned food, Chinese sausages, cereals and other goods sponsored by Wellcome Hong Kong and Maxim’s. people, but also brought Chinese New Year spirit to the elderly,” said Jardine Ambassador May Lo of Wellcome Hong Kong. “It was very heart-warming and meaningful to share experiences and see those involved reach out to one another.” MINDSET Steering Committee members Neil McNamara and Giles White and his wife also joined in and together the group handed out Lai See packets and spent time chatting with the elderly. “The event not only provided another opportunity for the MINDSET Place service users to interact more with Centre: MINDSET Steering Committee member and Group General Counsel Giles White hands out Lai See packets during the Chinese New Year visit to elderly live-alone people in Fanling. City Orienteering Forges Mutual Respect Over 230 participants including Jardine Ambassadors, students from MINDSET’s Health in Mind Programme and service users from Caritas Hostel, Fanling gathered together at Fanling Rhenish Church Secondary School in Hong Kong for a fun day out in the annual City Orienteering event organized by the Ambassadors. Participants were divided into 38 teams with the objective of finding their way to various tourist sites in Fanling, Taipo and Shatin before finishing at St Rose of Lima’s College in Shatin. The event provided a lot of opportunities for the students and service users to interact with one another through route planning, money management, problem solving, decision-making and completing given tasks. “I soon realized that the event wasn’t just about the students taking care of the service users, but the service users showing their capabilities in helping out their respective teams,” said Jardine Ambassador Ken Lin of Jardine Matheson Limited. “We all learnt from each other!” Participants in the City Orienteering event follow tradition by making a New Year’s wish at the famous ‘Wishing Tree’ in Taipo Lam Tsuen. Activities Provide Insight for Service Users Several activities for service users organized by the Jardine Ambassadors have proved a great success. standard table manners through group activities and games and given the opportunity to make their own pizzas. In the first, some 25 parents and children from the Hong Kong Family Welfare Society enjoyed a visit to Kornhill Plaza Pizza Hut. In the second outing, Jardine Ambassadors accompanied a group of service users from Castle Peak Hospital on a tour of Hong Kong International Airport where they learnt about the services provided by Jardine Aviation Group. They were also allowed to closely observe the taking off and landing of aircraft and Guided by restaurant managers, participants visited the back-of-house operations and learnt the process of making pizzas. They were also taught Kornhill Plaza Pizza Hut General Manager Alfred Lee passes on some tips on table etiquette to the visitors from the Hong Kong Family Welfare Society. each participant was given a sample boarding pass with his/her name on it. In another activity aimed at helping service users to develop new skills, participants from Fu Hong Society and Kwai Chung Hospital attended a practical computer training class organized by Jardine Ambassadors from Jardine OneSolution. During the course, they learnt how to surf the Internet and each person received a specially prepared manual. Meanwhile residents of New Life Building Halfway Houses had a chance to attend a body stretching class under the instruction of qualified trainer and Jardine Ambassador David Chioe of The Landmark Mandarin Oriental hotel. The participants found the class quite testing as they had not exercised for some time, but when it was over they wanted to know when they could have another session. Spirit 29 Inaugural Event for MINDSET Singapore MINDSET Singapore has held its first event, a Chinese New Year party for 60 long-stay patients at the Institute of Mental Health (IMH). The programme, which was organized by the Jardine Ambassadors appointed by the Group’s business units in Singapore, ranged from karaoke to games, with the patients divided into four groups of 15 to ensure maximum participation and enjoyment. Six MINDSET Singapore Steering Committee members and the newly appointed Chief Executive Officer of the IMH also joined in. Jardine Ambassadors together with MINDSET Singapore Steering Committee members at their inaugural event. Group Teams Hike for Hospice Teams from across the Jardine Matheson Group joined forces in the 2011 Hike for Hospice charity event, which was held in Tai Lam Country Park in the New Territories to support the Hong Kong Society for the Promotion of Hospice Care. Hikers from Jardine Lloyd Thompson, Jardine Schindler, Jardine Engineering Corporation, Hongkong Land, Jardine Aviation Services, and Jardine Matheson Limited traversed an arduous 19-kilometre course through mountainous terrain and rural countryside to complete the race. The team led by Group Managing Director Anthony Nightingale finished in first place, followed closely by two teams from Jardine Schindler. Jardine Matheson Group participants in the 2011 Hike for Hospice included from left: Finn Carew, Thomas Tan, Matthew Payne, Anthony Nightingale and David Lamb. The hike, which has been held annually since 1992, is the Society’s largest annual fundraising activity. Group Supports Earthquake Victims All facilities at Mandarin Oriental, Tokyo are fully operational following the devastating earthquake and tsunami in Japan on 11th March and the hotel continues to implement a variety of appropriate measures to support the government’s directive to conserve energy. In an effort to support the victims, Mandarin Oriental, Tokyo is donating 5% of all generated food and beverage revenue from the hotel’s restaurants and bars to the Japanese Red Cross Society. Following the devastating earthquake and tsunami in Japan, the Japanese Red Cross Society began immediate distribution of its stockpile of blankets to those in need. “Our thoughts remain with all victims and their loved ones during these difficult times,” said Mandarin Oriental, Tokyo General Manager Christian Hassing. Astra Aid to West Sumatra Quake Victims Meanwhile, almost two years after the earthquake that struck West Sumatra in 2009, Astra donations towards relief aid have topped Rp11.3 billion (US$1.33 million). In the latest project to be supported by the group, a public elementary school newly renovated by Astra Group has been opened in Padang Pariaman. This is the fourth such school renovation. Hong Kong IKEA Staff Join Forces in SPREE Campaign The ‘IKEA Kids Corner’ set up by the Hong Kong IKEA Volunteer Team to aid its SPREE programme. Building on its success to date, the Hong Kong IKEA Volunteer Team has recently been encouraging all IKEA staff to become more actively involved in its community programme, SPREE, which is now in its fifth year. SPREE, which stands for Student Psychological Resilience and Emotional Intelligence Enhancement, aims to coach students with techniques on how to better cope with stress and emotional issues through the use of games, activities and story-telling. Through a series of fund-raising events supported by all 900 plus staff members in Hong Kong, the IKEA team raised the money to fully renovate a permanent activity room at the Hong Kong Family Welfare Society Centre, which organizes the SPREE programme. The ‘IKEA Kids Corner’, which was designed by the company’s design team, now offers a warm and comforting environment that can better support the ambitions of SPREE. Cycle & Carriage Donation Eases Transportation Burden Cycle & Carriage’s donation of some S$100,000 (US$81,000) worth of passenger vehicles has eased the transportation burden of several welfare organizations in Singapore. Two brand new Citröen Dispatch passenger vans were donated to the Singapore Association for Mental Health and Singapore Anglican Community Services. The vehicles were specially modified to cater for the needs of the recipient organizations and include features such as passenger seats with three-point seat belts, side steps and first aid kits. The ‘Care for the Community’ programme was initiated by Cycle & Carriage in 1997 as part of its commitment to be an active and responsible corporate citizen. After 14 years it has now been replaced by MINDSET Singapore. “We are delighted that the programme has achieved its purpose of helping local volunteer welfare organizations meet their transportation needs,” said Jardine Cycle & Carriage Group Managing Director Ben Keswick. Centre left: Jardine Cycle & Carriage Managing Director Ben Keswick and Singapore Minister of State for Community Development, Youth and Sports Yu-Foo Yee Shoon with beneficiaries of the group’s ‘Care for the Community’ programme. JEC Philippines Visits Chosen Children Jardine Engineering Corporation (JEC) in the Philippines has made its second visit to the Chosen Children Village orphanage in Silang Cavite City, which is one of the company’s outreach programmes. The village serves as a home for abandoned children who are physically and mentally challenged. During the visit, JEC contributed cash to the village’s existing trust fund account. The aim is to raise Php20 million (US$462,000) for the fund to allow the village to become self-sustainable. Management and staff from JEC Philippines received a warm welcome during their second visit to the Chosen Children Village orphanage in Silang Cavite City. Spirit 31 JDI Seals Leaks in City High School With the aid of one of its world-class waterproofing products, Jardine Distribution, Inc (JDI) worked with school officials to resolve water leakage problems at Pasig Santolan High School in one of Metro Manila’s densely populated areas. The project was part of JDI’s ‘Sagip Silid-Aralan’ (Save the Classrooms) scheme, which aims to help schools around the Philippines using JDI’s quality construction products. “We applied the waterproof coating last year and as the rainy season passed, not a single case of water leakage was reported,” explained JDI Product Manager Rowena Asuncion. Rice Awareness Run Meanwhile, JDI recently sponsored and fielded a team in a running event organized by the Philippine Rice Research Institute in celebration of the country’s ‘Rice Awareness Month’. In recent years, the Philippines has been the world’s biggest importer of rice, but aims to be self-sufficient by 2013. Runners from Jardine Distribution, Inc (JDI) celebrate after completing the race organized by the Philippine Rice Research Institute in celebration of the country’s Rice Awareness Month. “As a new player in the hybrid rice market, JDI is engaged in extensive promotional efforts among farmers and trade partners as well as industryrelated activities such as this fun run,” explained JDI Senior Product Manager Roberto Littaua. JOS Hong Kong Bridges Gap Between Young and Old Jardine OneSolution (JOS) Hong Kong has been helping to bridge the gap between young and old by taking a group of isolated youngsters to visit a home for the elderly. Jardine OneSolution (JOS) Hong Kong brought young and old together for a pre-Chinese New Year party. Part of the ‘Withdrawn Youth Support Network Project’, the pre-Chinese New Year visit brought both groups together through festive songs, the making of traditional Chinese ornaments and a magic show. It is planned to involve young people in more volunteering efforts in the future. IKEA Taiwan Supports Children in Need IKEA Taiwan has joined a ‘Love Meal Deliver’ project organized by World Vision Taiwan and is raising funds to help provide breakfast and dinner during school days for students from disadvantaged families through local restaurants, churches and community kitchens. Through in-store and external communication, IKEA Taiwan has so far raised around NT$2,300,000 (US$80,000), which will benefit 2,000 children in need. IKEA Taiwan is helping to raise funds for students from disadvantaged families through the ‘Love Meal Deliver’ project organized by World Vision Taiwan. “We hope to create a better future for children in Taiwan through our long-term co-operation with World Vision and look forward to even more people supporting our efforts,” said IKEA Taiwan Marketing Manager Roxy Cheng. Team-Building and Leadership for Jardine Matheson Vietnam PEOPLE Some 30 senior managers and unit heads from across Jardine Matheson Group businesses in Vietnam came together for a two-day leadership and team-building workshop in Dalat in the country’s Central Highlands. After hearing about the rich history of the Group and discussing various leadership styles, the participants embarked on a variety of activities to encourage teamwork and develop an understanding of leadership behaviour. “As the group continues to grow organically and by third party investment, managerial development and synergy across the different business units becomes an increasingly important issue,” explained Jardine Matheson Vietnam Country Chairman Alain Cany. “This workshop was one way for us to address that.” Dairy Farm Graduates Aspire to Success Following eight months of commitment and training, participants in Dairy Farm’s ‘Executives in Development/Pharmacists Leadership Programme’ (EID/PLP) have graduated, with some already moving into positions of greater responsibility within their respective business units. The executives from Dairy Farm businesses, which included 7-Eleven, Cold Storage, Giant, Shop N Save and Guardian, underwent training and development in a wide variety of topics ranging from Presentation Skills and Basic Finance to Social Grooming and Etiquette, as well as learning how to ‘Drive Results through People’. At several stages of the programme, they also gave presentations to Dairy Farm senior management. For many, the main highlight of the EID/PLP programme was a trip to Hong Kong where the participants were exposed to and learnt best practices from Dairy Farm counterparts there. They also visited other Dairy Farm operations, among them 7-Eleven Hong Kong. “This allowed the team to experience customer service and business innovation in a more advanced environment where there is no room for the status quo,” said EID/PLP Programme Chairman Steven Lye. It is hoped that the executives who underwent a rigorous selection process for the EID/PLP programme will progress to become the next generation of Dairy Farm business leaders. “The EID/PLP executives have shown great commitment, dedication and potential and some have already moved into bigger roles,” said Dairy Farm Singapore HR Director Carol Yong. “We hope they will continue to shine and rise to greater heights within Dairy Farm.” Participants in Dairy Farm’s ‘Executives in Development/Pharmacists Leadership Programme’ with the organizing committee and sponsors. People 33 Team-Building and Leadership for Jardine Matheson Vietnam Board Appointment for Y K Pang Hongkong Land Chief Executive and Jardine Matheson Limited director Y K Pang has been appointed a Director of Jardine Matheson Holdings Limited. recent years, has also been active in the development of the Group’s business activities in mainland China. In addition, he participates fully in the business community, including currently being Vice Chairman of the Hong Kong General Chamber of Commerce and Chairman of the Employers’ Federation of Hong Kong. Mr Pang who joined the Group in 1984 has been Chief Executive of Hongkong Land since 2007 and in Passion at Wellcome Hong Kong Team-building Workshops ‘Passion to Win’ was the theme of Wellcome Hong Kong’s annual team-building training event. Five consecutive workshops were held with over 500 participants including senior management, store managers and supporting staff. Wellcome Hong Kong Chief Executive Officer Choo Peng Chee was also present to lend his support and encouragement. Team-building was demonstrated in many different ways during Wellcome Hong Kong’s annual team-building training event. Through activities and discussions, the workshops sought to highlight three of the company’s key objectives – sales boost, shrinkage control and cost management. A key activity was for teams to run their own ‘corporate brand company’, taking care of production, marketing and sales operations. Successive Jocks’ Pot Victory for Jardines The traditional annual Jardines v Swires football match was moved from Boxing Day to January with the aim of rekindling the social side of the event. Urged on by vocal supporters including Jock Mackie, one of the original Jocks who founded the event in 1953, Jardines won 2-0. This followed a 3-1 win last year. Although Swires put the Jardines squad under immense pressure, particularly in the first half, Jardines triumphed with two goals scored by forward Chiu Ka Chun from Jardine Schindler – one from 20 yards out in the first half and the second from a penalty in the latter stages of the second half. Goalkeeper Adam Keswick also saved the day on several occasions. In spite of some anxious moments, the Jardines team (in the white shirts) triumphed in the annual Jocks’ Pot football match against Swires. “It was a very competitive and enjoyable game with Jardines fortunate to have won as the Swires team dominated for the majority of the match,” said convener Joshua Chetwode of Jardine Engineering Corporation. Robert Kwok has retired as a nonexecutive Director from the Board of Jardine Matheson Holdings and has also stepped down from the boards of the other Group companies of which he was a director. Mr Kwok first joined the Group in 1964 and served in a variety of executive roles, being appointed to the board of the Group holding company in 1972. While relinquished his executive responsibilities several years ago, he has maintained an active involvement in the Group’s affairs. Commenting on Mr Kwok’s decision to retire, which is due to health reasons, Group Chairman Sir Henry Keswick said, “Bobby has served the Group with great skill and dedication for some 47 years. I would like to thank him for his fine service and am very pleased that he will continue his association with Jardine Matheson as an adviser.” Medal Honour for Vietnam Country Chairman Jardine Matheson Country Chairman for Vietnam Alain Cany has been awarded the Friendship Medal by the President of Vietnam. The honour is rarely given to foreign businessmen, but usually to long-term service diplomats or representatives from other Communist countries. Mr Cany received it for his personal involvement in developing trade and investment between Vietnam and Europe as Chairman of the European Chamber of Commerce for the last six years and CoChairman of the Vietnam-EU Business Forum for five years. Centre: Jardine Matheson Country Chairman for Vietnam Alain Cany at the medal award ceremony with (right) Vietnam Deputy Prime Minister Hoang Trung Hai and (left) Chairman of Vietnam Chamber of Commerce and Industry Dr Loc. New Chairman for Jardine Matheson (China) David Hsu has joined the Jardine Matheson Group as Chairman of Jardine Matheson (China) with responsibility for supporting the development of the Group’s business activities in mainland China, Taiwan and Macau. He has also joined the board of Group management company, Jardine Matheson Limited. Mr Hsu comes to Jardines from J P Morgan Asset Management in the Asia Pacific Region, where he had been Chief Executive since 2003. In addition to supervising eight offices across the Region, he was responsible for establishing J P Morgan’s mutual fund operations in mainland China, Korea and India. Prior to that he had been with the Jardine Matheson Group’s former investment banking joint venture, Jardine Fleming, in Taiwan since 1986, and remained there following its acquisition by J P Morgan in 2000. People 35 Long-Serving Group Director Robert Kwok Steps Down ENTERPRISE AT WORK ... Bar Boulud, Mandarin Oriental Hyde Park, London “The ‘can do’ spirit during that time was remarkable,” said Bar Boulud London General Manager Stephen Macintosh. Two weeks before opening, Bar Boulud successfully hosted the ‘50 Best Chefs in the World’ San Pellegrino Awards 2010. Celebrity chefs attending the event were full of praise for the successful combination of design, food quality and exceptional service. From left: The quintessential quartet from Bar Boulud London – Giles Verot, Nicholas Marragou, Dean Yasharian and Daniel Boulud. There were, however, still operational challenges to surmount. The overwhelmingly strong initial demand meant that the team had to work hard to ensure tables were available not only for external guests, but also for hotel guests who might not have booked in advance. When Mandarin Oriental Hyde Park, London decided that it needed to create a brand new restaurant from scratch, forming a team of people with the right skill sets, background and experience was crucial to achieving the objective. “It required strong communication between the restaurant team and the hotel’s concierge to understand each other’s needs and keep everyone happy, which they did with great success,” said Mr Macintosh. Bar Boulud London, which opened in May 2010 to critical acclaim, is named after three Michelin-starred chef Daniel Boulud and serves famed charcuterie and seasonal French brasserie cooking. Since opening, the 169-seat Bar Boulud has surpassed expectations and achieved amongst the highest volumes of any Mandarin Oriental Hotel Group restaurant. The 12-month project to open Bar Boulud was a team effort from the beginning. As well as key executive appointments and a Europe-wide search for talent, it involved the integration of service and kitchen colleagues from the hotel’s previous restaurants The Park and Foliage. “The professionalism of the former The Park and Foliage team was exceptional,” said Mandarin Oriental Hyde Park, London General Manager Tony McHale. “During the transition period they were still working fulltime at their respective restaurants, but joined the training and workshops for Bar Boulud after their shifts ended.” Pre-opening involved four weeks of intensive training with the goal of bringing the entire team together to pool skills and knowledge. It included product workshops, training in phraseology, sales and service, and cooking simulations. Hotel colleagues from other departments also visited the restaurant as guests and judged food quality and service performance. “To introduce a celebrity chef’s volume-driven concept and create a stand-alone restaurant within the infrastructure of the hotel required entrepreneurial spirit and great determination and has resulted in a redefinition of hotel dining in London,” said Tony McHale. “The challenging workload and time pressure were intense, but eventually these memories fade. What stays is an enormous pride for the team and for their exceptional performance. The success speaks for itself,” he added. After a hugely successful first year, Bar Boulud finished in the top 100 best restaurants in the World San Pellegrino Awards 2011. 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