CATEGORY AWARD WINNERS

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Phyllis Glenn
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1 CATEGORY AWARD WINNERS

2 THE JARDINE MATHESON GROUP PRIDE IN PERFORMANCE AWARDS The Pride in Performance (PIP) Awards identify and recognize excellent performances across the Group. The 2013 PIP programme has sought out teams at the operational level within the Jardine Matheson Group s businesses whose team members have produced outstanding achievements in demonstrating the Group s vision and values. They have made things happen and achieved great results. This booklet seeks to document their achievements and share their success stories across the Group. 11th March 2013

3 CATEGORY CUSTOMER ENGAGEMENT Auto2000, Indonesia INSPIRING TALENT Hongkong Land, Hong Kong MARKETING EXCELLENCE Cycle & Carriage, Singapore INNOVATIVE IDEAS Hong Kong Air Cargo Terminals Limited, Hong Kong SUPERIOR GROWTH Zung Fu, Hong Kong 1

4 Generating value for your customers offer them right products and services, and build relationships that result in loyalty. CUSTOMER

Auto2000, Indonesia Auto2000 Profits from Enhanced Customer Experience Indonesia s main Toyota dealer, PT Astra International Tbk Toyota Sales Operation (Auto2000), realized that it needed to

5 Auto2000, Indonesia Auto2000 Profits from Enhanced Customer Experience Indonesia s main Toyota dealer, PT Astra International Tbk Toyota Sales Operation (Auto2000), realized that it needed to overhaul its after-sales operations to meet a forecast growth in car sales to 500,000 per annum by 2015 and increasing customer expectations. Its main challenges included a limited workshop capacity and a low rate of customer retention for maintenance services. To deal with the anticipated market growth, Auto2000 first expanded its workshop network from 154 to 164 outlets across Indonesia. In addition, to better service the remote areas, in particular the mining and plantation districts of Kalimantan and Sumatra, Auto2000 increased its mobile car maintenance service, Toyota Home Service, by 25 units to 179 units. To complement the expanded capacity, the company introduced operational improvements aimed at boosting efficiency and upgrading productivity while simultaneously increasing service value. On the employee front, Auto2000 boosted staff training and implemented measures to instil a culture of pride in performance. Through the development of Kaizen (continuous improvement) experts, workshop employees were encouraged to share group activities and ideas aimed at developing team spirit and innovation. With 63% of buyers stating that good after-sales service is their key reason for selecting a Toyota vehicle, Auto2000 launched several strategies aimed at enhancing the ownership experience by being more responsive to customer needs. These included the launch of a real-time Complaint Management System which resulted in increasing customer satisfaction levels from 69.1% to 72.7%, and the introduction of a Maintenance Reminder Service (MRS) and an Integrated Appointment System (IAS). The MRS, which reminds customers a week before their scheduled periodic service, succeeded in presenting a 40% contribution to total unit entry in 2012 and reduced customer dissatisfaction from 2.4% to 0.9%. The IAS managed to increase the appointment rate from 45% to 61%. The financial results achieved were equally impressive revenue from repeated customers soared by 54% and profit from this customer segment jumped 45% to US$87.5 million. 3

6 INSPIRING Propelling your talented people forward through skills training, value sharing, or internal marketing and communications.

Hongkong Land, Hong Kong From Mission Impossible to a Stunning Serenade A team of six from Hongkong Land, armed with dedication and a determination to succeed, has turned a project dubbed mission

7 Hongkong Land, Hong Kong From Mission Impossible to a Stunning Serenade A team of six from Hongkong Land, armed with dedication and a determination to succeed, has turned a project dubbed mission impossible into a stunning commercial success. The project the redevelopment of a 37-year-old residential building in Hong Kong was fraught with complications and faced numerous legal and business challenges. Despite team members having to learn radical new skills and competencies beyond their original hire, each rose to the occasion, personifying the concept of people inspiring people. Conceived as a luxury development that would enhance Hongkong Land s reputation following its re-entry into the residential property market, Serenade s original name was Lai Sing Court. As a redevelopment project, at least 90% of its original owners had to give their consent before the project could proceed a process normally requiring years of negotiations. Through an innovative package that involved a new flat upon completion, a small upfront compensation and a sharing of profits, the Serenade team secured a deal in a record 18 months. This proved to the first of the team s many innovative moves and tenacious perseverance in the face of mammoth challenges from complicated submissions and appeals to the Town Planning Board and Land Tribunal to creative sales and marketing efforts in response to the global economic downturn and tightened mortgage financing. As at 31st December 2012, the new residential development, Serenade, has outperformed market expectations with over 80% of units sold at an average price of US$2,934 per square foot. Current estimates of its actual pre-tax ROC and project return are 147.3% and 29.5% respectively way above its original ROC target and project return of 41.1% pre-tax and 18.5% pre-tax. Net profit achieved was US$264.3 million 297% above the original target. 5

8 MARKETING Seeking out exciting and effective marketing strategies or initiatives that have led to commercial success.

Cycle & Carriage, Singapore Marketing Value Over Volume Historically regarded as a support service, Cycle & Carriage, Singapore s (C&C) Mercedes-Benz After-Sales Division dramatically changed its

9 Cycle & Carriage, Singapore Marketing Value Over Volume Historically regarded as a support service, Cycle & Carriage, Singapore s (C&C) Mercedes-Benz After-Sales Division dramatically changed its contribution to the company s bottomline after it took independent workshops offering a cheaper service head-on by repositioning its value proposition to customers. To appeal to value-conscious customers, C&C revised its business model and revamped service centre operations to streamline internal processes. Rather than compete with independent workshops on price, the dealer chose to enhance its value offering by maximizing customer convenience and creating a demand for its ancillary offerings, such as car grooming and tyre services. To facilitate convenience, C&C created a Mercedes-Benz (MB) centralized booking system which allowed customers to book services online as well as introduced a one-hour express service with a 30% discount should the workshop fail to meet the deadline. Instead of cash discounts for trade-ins, the after-sales division worked with the sales department to offer service credits which helped retain customers. Noting that customers often go elsewhere for their vehicle grooming, C&C strategically sited MB Body Care Services outlets at service centre car park bays. Similarly, drive-in tyre stores were located at the front of all MB service centres with attractive low pricing for tyre rotation and balancing. To support these initiatives, C&C launched a marketing campaign aimed at educating customers on the advantages of an authorized dealer versus an independent workshop. A quarterly newsletter featuring useful information such as car care tips, safety tips, fuel saving ideas and special promotions was created as part of its direct mail campaign. By end 2012, C&C proved that its strategy to focus on value outstripped playing the numbers game. While the number of cars visiting MB service centres over the last four years rose by 15%, profit levels have increased by 190% to hit an all-time record of US$13.7 million. 7

10 INNOVATIVE Putting new ideas into action to achieve a new milestone in results, performances or productivity.

Hong Kong Air Cargo Terminals Limited, Hong Kong Hactl Flies Higher with COSAC-Plus Facing a threat to growth, with its biggest customer Cathay Pacific turning into its biggest competitor following

11 Hong Kong Air Cargo Terminals Limited, Hong Kong Hactl Flies Higher with COSAC-Plus Facing a threat to growth, with its biggest customer Cathay Pacific turning into its biggest competitor following the start-up of Cathay s cargo terminal at Hong Kong International Airport in 2013, Hong Kong Air Cargo Terminals Limited (Hactl) launched a pre-emptive strike with a redesign of the software at the heart of its cargo management system. Aimed at lifting service levels to unprecedented heights, the new software codenamed COSAC-Plus represented a major risk every line of code, feature, template had to be rewritten from scratch on new computer platforms with a new level of user customization. It was a mammoth and incredibly complex project affecting over 100 airlines, 1,000 forwarders and 4,000 users. Not only did Hactl s IT team complete COSAC-Plus two months ahead of schedule, they delivered it with every design specification met at 14% or US$4.6 million under budget. Once the new system was ready, over 4,000 users including some based overseas had to be trained on it. Hactl designed and handled this demanding challenge so successfully that its COSAC-Plus training programme has received the 2012 Hong Kong Management Association Award for Excellence in Training and Development. Next came the switchover from the old system to COSAC-Plus a complicated and difficult process in which 151 processes had to be completed in under four hours without any disruption to Hactl s 24/7 operations. Through exceptional team management and detailed planning, the switchover was flawlessly executed. A year after its 2011 launch, COSAC-Plus has transformed Hactl s operations and redefined service levels for the air cargo terminals industry, giving it an essential platform to compete aggressively with Cathay s new terminal as it comes online in Indeed, Hactl is already off to a flying start during 2012, it signed up ten new airlines and locked in 16 existing customers, accounting for over 20% of total revenue for the year. 9

12 SUPERIOR Achieving superior growth with consistent outperformance over the past three years.

Zung Fu, Hong Kong Hyundai Hits Top Gear Between 2003 and 2009, Zung Fu s subsidiary Hyundai Hong Kong (HHK) reported consecutive annual losses as a result of low sales volume and high operating

In 2010 management devised a multi-pronged turnaround strategy that delivered dramatic results after seven years of negative returns, HHK achieved a profit of US$825,000 in 2010, US$2 million in 2011

13 Zung Fu, Hong Kong Hyundai Hits Top Gear Between 2003 and 2009, Zung Fu s subsidiary Hyundai Hong Kong (HHK) reported consecutive annual losses as a result of low sales volume and high operating costs. In 2010 management devised a multi-pronged turnaround strategy that delivered dramatic results after seven years of negative returns, HHK achieved a profit of US$825,000 in 2010, US$2 million in 2011 and US$4.3 million in After lacklustre Hyundai sales among Hong Kong s image-conscious consumers, HHK decided to crack the more pragmatic commercial car market in 2008 with the six-seater H1 van. To build up Hyundai s image and create a niche for the H1, HHK sought out influential early adopters and convinced them to write about their positive experiences. One satisfied H1 owner even created a web forum featuring a Q&A site for interested buyers to pose questions on the vehicle s features and reliability. Other innovative marketing strategies included incentivizing fleet owners and introducing the new environmentally friendly Euro 5 H1 van in 2012 to enhance Hyundai s eco reputation. As a result, HHK s market share for the light goods vehicle market grew from 14% in 2009 to an impressive 33% by November As demand increased, HHK moved to overhaul the supply chain which was encountering operational and regulatory obstacles. Measures here included teaming up with Macau s distributor to achieve the required volume for direct shipments from South Korea and working with major right-hand drive distributors to appeal to Hyundai to produce a greater variety of right-hand drive vehicles. The latter led to HHK doubling its product range with the launch of four new models Elantra 4-door sedan, Veloster 3-door coupe, i40 sedan and i40 wagon. By end 2012, sales had jumped fourfold to 1,226 units from 306 units in Best of all, HHK staff are now inspired to continue pursuing a culture of excellence. 11

14 2013 PRIDE IN PERFORMANCE AWARDS ENTRIES CUSTOMER ENGAGEMENT Auto2000, Indonesia Auto2000 Profits from Enhanced Customer Experience Auto2000, Indonesia Painting a Profit Auto2000, Indonesia The Value of Growing Together Hero Supermarket, Indonesia A Giant Champion of Family Values JEC, Thailand JEC Thailand s Mega Achievement Pamapersada Nusantara Distrik Kide, Indonesia PAMA Energizes Productivity United Tractors, Indonesia UT Wins through Proactive Customer Engagement INSPIRING TALENT Hongkong Land, Hong Kong From Mission Impossible to a Stunning Serenade JLT, United Kingdom JLT Invests in Leadership Excellence Jardine Motors, United Kingdom Inspiring a Culture of Excellence Jardine Schindler, Hong Kong Together We Will Succeed MARKETING EXCELLENCE Auto2000, Indonesia Toyota Moves into Top Gear Cycle & Carriage, Singapore Marketing Value Over Volume Daihatsu Sales Operation, Indonesia Daihatsu Moves Upmarket INNOVATIVE IDEAS Astra Daihatsu Motor & Astra Otoparts, Indonesia Synergy Spurs Success Auto2000, Indonesia Less Inventory, More Profits Hactl, Hong Kong Hactl Flies Higher with COSAC-Plus Pamapersada Nusantara, Indonesia PAMA Creates a Man-sized Business Opportunity Pamapersada Nusantara Distrik Adaro, Indonesia PAMA Mines Deeper and Safer Pamapersada Nusantara Distrik BCSK, Indonesia PAMA Turns Mud into Profit Units within Astra Automotive Group and Astra Financial Service Group, Indonesia Astra Creates Finance Value Chain United Tractors, Indonesia Optimizing Output through Efficient Input SUPERIOR GROWTH Astra Agro Lestari, Indonesia Together We will Grow Astra Honda Motor, Indonesia Honda Shifts to Top Gear Hongkong Land, Hong Kong Making Over a Prince Jardine Motors, United Kingdom Lancaster Land Rover Revs Up Growth Mandarin Oriental, Munich Boutique and Best Zung Fu, Hong Kong Hyundai Hits Top Gear Guardian, Indonesia Passion Makes the Impossible Possible Health and Glow, India Health & Glow Woos and Wins Trendy Women Pizza Hut, Hong Kong Pizza and More Trane, Hong Kong Trane-ing the Customer Wins Back Business United Tractors Pandu Engineering, Indonesia UTPE Conquers New Business Frontiers

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One. Home Furnishings Construction. Hongkong Land. Commercial. Hactl. Gammon. Heavy Equipment. Jardine Schindler. Airport Services.

One. Home Furnishings Construction. Hongkong Land. Commercial. Hactl. Gammon. Heavy Equipment. Jardine Schindler. Airport Services. Construction Engineering Heavy Equipment Jardine Aviation Transport Jardine Pacific Jardine Matheson Reinsurance Engineering Zhongsheng Group Infrastructure Construction Airport Hactl Mandarin Oriental