TIDMJDS TIDMJAR
RNS Number : 5383D
Jardine Strategic Hldgs Ltd
28 April 2017
To: Business Editor 28th April 2017
For immediate release
Jardine Cycle & Carriage Limited
2017 First Quarter Financial Statements and Dividend
Announcement
The following announcement was issued today by the Company's
75%-owned subsidiary, Jardine Cycle & Carriage Limited.
For further information, please contact:
Jardine Matheson Limited
Neil M McNamara (852) 2843 8227
Brunswick Group Limited
Karin Wong (852) 3512 5077
28th April 2017
JARDINE CYCLE & CARRIAGE LIMITED
2017 FIRST QUARTER FINANCIAL STATEMENTS AND DIVID
ANNOUNCEMENT
Highlights
-- Underlying earnings per share up 44%
-- Stronger performance from Astra
-- Lower contribution from Direct Motor Interests
"The outlook for the rest of the year is positive with Astra
expected to benefit from the continued growth in the Indonesian
economy, supported by higher commodity prices, although for its
automotive activities there is a risk of increasing price
competition. The Group's Direct Motor Interests and the Other
Interests are likely to face increased competition."
Ben Keswick, Chairman
28th April 2017
Group Results
-------------------------------- --------------------------------- ------- -----------
Three months ended 31st March
-------------------------------- ------------------------------------------- -----------
2017 2016 Change 2017
US$m US$m % S$m
---------------------------------- --------------- --------------- ------- -----------
Revenue 4,233 3,649 16 5,967
Profit after tax 469 291 61 661
Underlying profit attributable
to
shareholders 202 141 44 285
Profit attributable to
shareholders 210 141 50 297
---------------------------------- --------------- --------------- ------- -----------
USc USc Sc
---------------------------------- --------------- --------------- ------- -----------
Underlying earnings per
share 51 36 44 72
Earnings per share 53 36 50 75
At At At
31.3.2017 31.12.2016 31.3.2017
---------------------------------- --------------- --------------- ------- -----------
US$m US$m S$m
---------------------------------- --------------- --------------- ------- -----------
Shareholders' funds 6,033 5,755 5 8,436
---------------------------------- --------------- --------------- ------- -----------
US$ US$ S$
---------------------------------- --------------- --------------- ------- -----------
Net asset value per share 15.26 14.56 5 21.34
---------------------------------- --------------- --------------- ------- -----------
The exchange rate of US$1=S$1.40 (31st December 2016:
US$1=S$1.44) was used for translating assets and liabilities at the
balance sheet date and US$1=S$1.41 (31st March 2016: US$1=S$1.40)
was used for translating the results for the period.
The financial results for the three months ended 31st March 2017
and 31st March 2016 have been prepared in accordance with
International Financial Reporting Standards. These results have not
been audited or reviewed by the auditors.
CHAIRMAN'S STATEMENT
Overview
Jardine Cycle & Carriage performed well in the first quarter
of the year with Astra showing improvements in almost all of its
businesses as they benefited from the general growth in the
Indonesian economy and a recovery in commodity prices.
Performance
The Group's revenue in the first quarter was US$4.2 billion, 16%
up on the previous year, with increases from most of Astra's
businesses. The Group's underlying profit rose by 44% to US$202
million. Profit attributable to shareholders was US$210 million, an
increase of 50% on the previous year, after accounting for a
non-trading gain of US$8 million arising from the valuation at fair
value of an investment held by an associate. Earnings per share
rose 50% to USc53.
Astra contributed US$185 million to the Group's underlying
profit, 67% higher than the comparable period last year. The
Group's Direct Motor Interests contributed an underlying profit of
US$23 million, a decline of 36%, while no contribution was
recognised from the Group's Other Interests.
The Group's net cash, excluding net borrowings within Astra's
financial services subsidiaries, was US$263 million at the end of
March compared to US$709 million at the end of 2016, mainly due to
toll road and power plant investments made by Astra. Net debt
within Astra's financial services subsidiaries was US$3.5 billion,
similar to the end of 2016. JC&C's net cash was US$153 million,
compared to US$154 million at the end of 2016.
The Board has not declared a dividend for the first quarter
ended 31st March 2017 (31st March 2016: Nil)
Group Review
Astra
Astra reported a net profit equivalent to US$381 million, under
Indonesian accounting standards, 63% higher in its local currency
with increases in all businesses, except for infrastructure and
logistics and information technology. The group's automotive
businesses achieved strong improved market shares for both cars and
motorcycles. The overall wholesale market for cars grew while that
for motorcycles declined. The financial services businesses
improved, with a return to profit for Permata Bank, while higher
commodity prices led to better trading performances from the heavy
equipment and agribusiness operations.
Automotive
Net income from the group's automotive businesses increased by
45% to US$171 million, largely due to the sales momentum from
successful new model introductions in 2016 which has continued into
2017.
The wholesale market for cars grew by 6% to 283,000 units.
Astra's car sales were 27% higher at 161,000 units, resulting in an
increase in market share from 48% to 57%. The group launched one
new model and two revamped models during the first quarter of
2017.
The wholesale market for motorcycles decreased by 7% to 1.4
million units. While Astra Honda Motor's domestic sales fell 2% to
1.1 million units, its market share rose from 72% to 77%, supported
by the launch of four new models and six revamped models during the
period.
Net income of Astra Otoparts, the group's component business,
increased 83% to US$11 million, supported by higher revenue from
its OEM and aftermarket segments and a higher earnings contribution
from its joint venture and associates.
Financial Services
Net income from the group's financial services business
increased 75% to US$84 million, with improved contributions from
most financial services businesses, including Permata Bank.
The group's consumer finance businesses saw a 17% increase in
the amount financed, including amounts financed through joint bank
financing without recourse, to US$1.4 billion. Car-focused Astra
Sedaya Finance reported net income 11% higher at US$18 million,
while Toyota Astra Financial Services recorded a 25% increase in
net income at US$7 million, both benefiting from growth in the car
market and Astra's increased market share. Motorcycle-focused
Federal International Finance's net income was up 13% at US$33
million, benefiting from Honda's improved market share and loan
product diversification.
The amount financed through the group's heavy equipment-focused
finance operations increased by 28% to US$98 million. Net income at
Surya Artha Nusantara Finance, which specialises in small and
medium heavy equipment financing, was slightly lower at US$1
million.
Astra's 44.6%-held joint venture, Permata Bank, reported net
income of US$34 million compared with a net loss of US$28 million
in the same period in 2016. The bank's gross non-performing loan
ratio declined from 8.8% at the end of 2016 to 6.4% at the end of
March 2017, while its net non-performing loan ratio remained stable
at 2.2%. The improved performance of Permata Bank was the result of
good underlying income and the liquidation of non-performing loans
as planned. In order to further strengthen its capital base, a
US$220 million rights issue is expected to be completed in the
first half of 2017, of which US$110 million had already been
injected as a capital advance in December 2016 by its two major
shareholders, Astra International and Standard Chartered Bank.
Asuransi Astra Buana, the group's general insurance company,
reported net income 4% higher at US$16 million, primarily due to
increased automotive underwriting income.
During the period, the group's life insurance joint venture,
Astra Aviva Life, acquired close to 67,000 individual life
customers and 145,000 participants for its corporate employee
benefits programmes, bringing the respective totals to 267,000 and
637,000 at the end of the first quarter of 2017.
Heavy Equipment and Mining
The net income contribution to the group from its heavy
equipment and mining business increased by 104% to US$68
million.
United Tractors, which is 59.5%-owned, reported net income 105%
higher at US$113 million due to higher business volumes in
construction machinery, mining contracting and mining operations,
all of which benefited from improved coal prices.
In its construction machinery business, Komatsu heavy equipment
sales were up 70% to 847 units, while parts and service revenues
were also higher. The mining contracting operations of Pamapersada
Nusantara recorded a 2% increase in coal production at 25 million
tonnes while overburden removal was 3% higher at 171 million bank
cubic metres. United Tractors' mining subsidiaries reported 9%
higher coal sales at 1.9 million tonnes.
General contractor Acset Indonusa, a 50.1% subsidiary of United
Tractors, reported net income up 63% at US$2 million with new
contracts of US$518 million secured in the period, compared with
US$176 million secured in the first quarter of 2016.
In March 2017, 25%-owned Bhumi Jati Power, which will develop
and operate two 1,000 MW thermal power plants in Central Java,
completed its project financing agreement with lenders. This build,
operate and transfer project is expected to cost approximately
US$4.2 billion and is scheduled to start commercial operation in
2021. Bhumi Jati Power is a joint venture amongst wholly-owned
subsidiaries of United Tractors, Sumitomo Corporation and Kansai
Electric Power Co Inc.
In March 2017, United Tractors through its subsidiary, Tuah
Turangga Agung, completed the acquisition of an 80.1% stake in PT
Suprabari Mapanindo Mineral, a coking coal company in Central
Kalimantan.
Agribusiness
Net income from the group's agribusiness business increased by
92% to US$48 million in the first quarter of 2017.
Astra Agro Lestari, which is 79.7%-owned, reported net income of
US$60 million, up from US$31 million in the first quarter of 2016,
due to improved revenue from higher crude palm oil prices and
increased crude palm oil production and sales. Average crude palm
oil prices achieved were 36% higher at Rp8,953/kg, while sales of
crude palm oil and its derivatives were 1% higher at 410,000
tonnes, compared to the same period last year.
Infrastructure and Logistics
Net income of the group's infrastructure and logistics business
decreased by 3% to US$5 million, mainly due to initial losses
arising from the commencement of the Cikopo-Palimanan toll road and
lower earnings from its water utility business.
The 72km Tangerang-Merak toll road, operated by 79.3%-owned
Marga Mandalasakti, saw traffic volumes increase by 5% to 12
million vehicles. Construction continues at the wholly-owned 41km
Jombang-Mojokerto toll road, where 20km is already operational. At
the 73km Semarang-Solo toll road, in which the group has a 25%
interest, 23km is now in operation.
In January 2017, the group completed the acquisition of an
initial 40% interest in PT Baskhara Utama Sedaya, which owns 45% of
the operator of the fully operational 116km Cikopo-Palimanan toll
road, and has subsequently conditionally agreed to acquire the
remaining 60% interest. Along with its 40% stake in the 11km
Kunciran-Serpong toll road and a 25% stake in the 40km
Serpong-Balaraja toll road, both of which are greenfield, the
group's total interest in toll roads amounts to 353km.
PAM Lyonnaise Jaya, which operates the western Jakarta water
utility system, experienced a 2% decrease in sales volume to 38
million cubic metres.
Serasi Autoraya's net income increased by 82% to US$3 million,
due to higher net margins in its car leasing and rental and
logistics businesses, despite a 2% decline in contracted vehicles
in its car leasing and rental business.
Information Technology
Net income from the group's information technology business
decreased by 23% to US$2 million. Astra Graphia, which is
76.9%-owned, reported a 23% decline in net income to US$3 million
following a decline in revenue from its IT solutions business.
Property
Net income from the group's property business at US$3 million
was significantly higher than the US$1 million achieved in the
first quarter of 2016, mainly due to higher development earnings
recognised on Anandamaya Residences.
Direct Motor Interests
The Group's Direct Motor Interests contributed an underlying
profit of US$23 million, 36% down on the previous year. The
reduction was due largely to a lower contribution from Truong Hai
Auto Corporation in Vietnam as a result of increased competition.
In Singapore, Cycle & Carriage recorded increased profits from
higher vehicle unit sales and a larger contribution from its used
car business. In Malaysia, Cycle & Carriage Bintang's modest
profit reflected intense price competition in the premium car
market which impacted margins. In Indonesia, Tunas Ridean's
contribution was stable as stronger profits from the automotive and
rental businesses were offset by a lower contribution from Mandiri
Tunas Finance.
Other Interests
Similar to the previous year, the Group did not recognise any
contribution from its Other Interests in the first quarter of 2017.
The Group's 24.9%-held Siam City Cement Public Company Limited in
Thailand has yet to announce its first quarter results while
22.9%-held Refrigeration Electrical Engineering Corporation in
Vietnam, just reported a profit of US$15 million, significantly
higher than the previous year. Together, these results are not
expected to have a material impact to the Group and will be
accounted for in the second quarter.
Outlook
The outlook for the rest of the year is positive with Astra
expected to benefit from the continued growth in the Indonesian
economy, supported by higher commodity prices, although for its
automotive activities there is a risk of increasing price
competition. The Group's Direct Motor Interests and the Other
Interests are likely to face increased competition.
Ben Keswick
Chairman
28th April 2017
Statement pursuant to Rule 705(5) of the Listing Manual
The directors confirm that, to the best of their knowledge,
nothing has come to the attention of the Board of Directors which
may render the accompanying unaudited interim financial results for
the three months ended 31st March 2017 to be false or misleading in
any material respect.
On behalf of the Directors
Ben Keswick
Director
Hassan Abas
Director
28th April 2017
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the three months ended
31st March 2017
-----------------------------------------------------------------
2017 2016 Change
Note US$m US$m %
Revenue 4,232.6 3,648.9 16
Net operating costs 2 (3,809.9) (3,363.6) 13
Operating profit 2 422.7 285.3 48
Financing income 27.9 18.9 48
Financing charges (38.4) (29.0) 32
---------- ----------
Net financing charges (10.5) (10.1) 4
Share of associates'
and joint
ventures' results after
tax 155.8 81.5 91
Profit before tax 568.0 356.7 59
Tax 3 (99.0) (66.0) 50
Profit after tax 469.0 290.7 61
========== ==========
Profit attributable to:
Shareholders of the Company 210.4 140.6 50
Non-controlling interests 258.6 150.1 72
469.0 290.7 61
========== ==========
USc USc
----------------------------- ----- ---------- ---------- -------
Earnings per share 4 53 36 50
----------------------------- ----- ---------- ---------- -------
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the three
months ended 31st March 2017
--------------------------------------------------------------
2017 2016
US$m US$m
Profit for the period 469.0 290.7
Items that will not be reclassified
to profit or loss:
------- -------
Remeasurements of defined benefit
pension plans 0.9 1.1
Tax on items that will not be reclassified (0.2) (0.3)
Share of other comprehensive expense
of associates
and joint ventures, net of tax (0.7) (0.8)
------- -------
- -
Items that may be reclassified subsequently
to profit or loss:
------- -------
Translation difference
- gain arising during the period 123.1 396.5
Available-for-sale investments
- gain arising during the period 9.5 13.0
- transfer to profit and loss - 0.1
Cash flow hedges
- loss arising during the period (21.3) (49.4)
- transfer to profit and loss 4.3 8.6
Tax relating to items that may be
reclassified 4.1 10.2
Share of other comprehensive expense
of associates
and joint ventures, net of tax (1.2) (2.4)
118.5 376.6
Other comprehensive income for the
period 118.5 376.6
Total comprehensive income for the
period 587.5 667.3
======= =======
Attributable to:
Shareholders of the Company 278.6 317.5
Non-controlling interests 308.9 349.8
587.5 667.3
======= =======
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 31st March 2017
-----------------------------------------------
At At
Note 31.3.2017 31.12.2016
US$m US$m
Non-current assets
Intangible assets 1,044.2 972.3
Leasehold land use rights 621.4 620.4
Property, plant and equipment 3,187.7 2,978.5
Investment properties 490.2 460.2
Bearer plants 506.1 496.8
Interests in associates
and joint ventures 3,991.8 3,738.5
Non-current investments 502.9 487.8
Non-current debtors 2,870.5 2,691.6
Deferred tax assets 319.2 291.2
----------
13,534.0 12,737.3
---------- -----------
Current assets
Current investments 72.2 65.2
Stocks 1,743.2 1,548.4
Current debtors 5,102.8 4,636.7
Current tax assets 128.5 136.9
Bank balances and other
liquid funds
---------- -----------
- non-financial services
companies 2,184.6 2,237.2
- financial services companies 410.2 228.5
---------- -----------
2,594.8 2,465.7
---------- -----------
9,641.5 8,852.9
---------- -----------
Total assets 23,175.5 21,590.2
---------- -----------
Non-current liabilities
Non-current creditors 198.6 156.7
Provisions 104.4 97.6
Long-term borrowings 5
---------- -----------
- non-financial services
companies 518.5 349.9
- financial services companies 1,791.8 1,517.5
---------- -----------
2,310.3 1,867.4
Deferred tax liabilities 200.3 188.0
Pension liabilities 224.2 215.9
----------
3,037.8 2,525.6
---------- -----------
Current liabilities
Current creditors 3,739.4 3,363.6
Provisions 86.9 85.7
Current borrowings 5
---------- -----------
- non-financial services
companies 1,402.9 1,178.6
- financial services companies 2,104.3 2,264.6
---------- -----------
3,507.2 3,443.2
Current tax liabilities 141.5 95.7
----------
7,475.0 6,988.2
----------
Total liabilities 10,512.8 9,513.8
---------- -----------
Net assets 12,662.7 12,076.4
========== ===========
Equity
Share capital 6 1,381.0 1,381.0
Revenue reserve 7 5,719.0 5,508.7
Other reserves 8 (1,066.8) (1,135.1)
----------
Shareholders' funds 6,033.2 5,754.6
Non-controlling interests 9 6,629.5 6,321.8
----------
Total equity 12,662.7 12,076.4
========== ===========
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the three months
ended 31st March 2017
Attributable to shareholders of the Company
Attributable
Asset Fair to non-
value
Share Revenue revaluation Translation and controlling Total
other
capital reserve reserve reserve reserves Total interests equity
US$m US$m US$m US$m US$m US$m US$m US$m
2017
Balance at 1st
January 1,381.0 5,508.7 400.4 (1,546.7) 11.2 5,754.6 6,321.8 12,076.4
Total
comprehensive
income - 210.3 - 70.3 (2.0) 278.6 308.9 587.5
Dividends paid to
non-controlling
interests - - - - - - (7.0) (7.0)
Acquisition of
subsidiary - - - - - - 6.6 6.6
Other - - - - - - (0.8) (0.8)
-------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance at 31st
March 1,381.0 5,719.0 400.4 (1,476.4) 9.2 6,033.2 6,629.5 12,662.7
======== ======== ============ ============ ========= ======== ============= =========
2016
Balance at 1st
January 1,381.0 5,065.3 347.0 (1,642.1) 14.9 5,166.1 5,560.9 10,727.0
Total
comprehensive
income - 140.8 (0.2) 186.5 (9.6) 317.5 349.8 667.3
Dividends paid to
non-controlling
interests - - - - - - (0.1) (0.1)
Change in
shareholding - 0.1 - - - 0.1 - 0.1
Balance at 31st
March 1,381.0 5,206.2 346.8 (1,455.6) 5.3 5,483.7 5,910.6 11,394.3
======== ======== ============ ============ ========= ======== ============= =========
Jardine Cycle & Carriage Limited
Company Balance Sheet at 31st March 2017
------------------------------------------
At At
Note 31.3.2017 31.12.2016
US$m US$m
Non-current assets
Property, plant and equipment 33.2 32.0
Interests in subsidiaries 1,267.5 1,226.6
Interests in associates and
joint ventures 804.5 776.7
Non-current investment 11.4 11.0
2,116.6 2,046.3
---------- -----------
Current assets
Current debtors 43.9 42.8
Bank balances and other liquid
funds 152.5 154.1
---------- -----------
196.4 196.9
---------- -----------
Total assets 2,313.0 2,243.2
---------- -----------
Non-current liabilities
Deferred tax liabilities 5.8 5.6
5.8 5.6
---------- -----------
Current liabilities
Current creditors 16.3 20.5
Current tax liabilities 1.7 1.7
18.0 22.2
---------- -----------
Total liabilities 23.8 27.8
---------- -----------
Net assets 2,289.2 2,215.4
========== ===========
Equity
Share capital 6 1,381.0 1,381.0
Revenue reserve 7 653.9 654.2
Other reserves 8 254.3 180.2
Total equity 2,289.2 2,215.4
========== ===========
Net asset value per share US$5.79 US$5.61
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the three months
ended 31st March 2017
----------------------------------------------------------------
2017 2016
US$m US$m
Loss for the period (0.3) (4.9)
Item that may be reclassified subsequently
to profit or loss:
------ --------
Translation difference
- gain arising during the period 74.1 103.4
Other comprehensive income for the
period 74.1 103.4
Total comprehensive income for the
period 73.8 98.5
====== ========
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the three months ended
31st March 2017
-------------------------------------------------------------------
Share Revenue Translation Fair value Total
capital reserve reserve reserve equity
US$m US$m US$m US$m US$m
2017
Balance at 1st January 1,381.0 654.2 175.5 4.7 2,215.4
Total comprehensive
income - (0.3) 74.1 - 73.8
Balance at 31st
March 1,381.0 653.9 249.6 4.7 2,289.2
========= ========= ============ =========== ========
2016
Balance at 1st January 1,381.0 628.2 223.9 3.5 2,236.6
Total comprehensive
income - (4.9) 103.4 - 98.5
Balance at 31st
March 1,381.0 623.3 327.3 3.5 2,335.1
========= ========= ============ =========== ========
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the three months ended
31st March 2017
-----------------------------------------------------------------
2017 2016
Note US$m US$m
Cash flows from operating activities
Cash generated from operations 10 400.4 504.1
Interest paid (29.1) (15.0)
Interest received 25.4 18.1
Other finance costs paid (18.4) (13.9)
Income tax paid (63.1) (91.4)
--------- ---------
(85.2) (102.2)
Net cash flows from operating activities 315.2 401.9
Cash flows from investing activities
--------- ---------
Sale of property, plant and equipment 2.6 6.9
Sale of investment properties - 1.0
Sale of investments 6.0 16.5
Sale of leasehold land use rights 1.5 -
Purchase of intangible assets (17.7) (14.6)
Purchase of leasehold land use rights (13.6) (3.3)
Purchase of property, plant and equipment (176.2) (92.8)
Purchase of investment properties (25.7) (13.1)
Additions to bearer plants (9.6) (12.2)
Purchase of subsidiaries, net of
cash acquired (8.4) (0.3)
Purchase of shares in associates
and joint ventures (411.0) (25.4)
Purchase of investments (14.0) (18.2)
Dividends received from associates
and joint ventures (net) 7.3 -
Net cash flows used in investing
activities (658.8) (155.5)
Cash flows from financing activities
--------- ---------
Drawdown of loans 4,260.2 2,366.0
Repayment of loans (3,817.2) (2,559.9)
Payment for capital reduction to
non-controlling interests (0.8) -
Dividends paid to non-controlling
interests - (0.1)
Net cash flows from/(used) in financing
activities (1) 442.2 (194.0)
Net change in cash and cash equivalents 98.6 52.4
Cash and cash equivalents at the
beginning of the period 2,465.7 2,173.0
Effect of exchange rate changes 25.9 45.5
Cash and cash equivalents at the
end of the period 2,590.2 2,270.9
========= =========
(1) Increase in cash from financing activities largely to
finance toll road and power plant investments made by Astra
Jardine Cycle & Carriage Limited
Notes to the financial statements for the three months ended
31st March 2017
--------------------------------------------------------------
1 Basis of preparation
The financial statements are consistent with those set out in
the 2016 audited accounts which have been prepared in accordance
with International Financial Reporting Standards ("IFRS"). There
have been no changes to the accounting policies described in the
2016 audited accounts.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment in the process of
applying the Group's accounting policies. Estimates and judgments
used in preparing the financial statements are regularly evaluated
and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. The resulting accounting estimates will,
by definition, seldom equal the related actual results.
The exchange rates used for translating assets and liabilities
at the balance sheet date are US$1=S$1.3982 (2016: US$1=S$1.4449),
US$1=RM4.4257 (2016: US$1=RM4.4852), US$1= IDR13,321 (2016:
US$1=IDR13,436), US$1=VND22,760 (2016: US$1=VND22,765) and
US$1=THB34.4630 (2016: US$1=THB35.8090).
The exchange rates used for translating the results for the
period are US$1=S$1.4098 (2016: US$1 =S$1.3961), US$1=RM4.4334
(2016: US$1=RM4.1001), US$1=IDR13,342 (2016: US$1=IDR13,506),
US$1=VND22,705 (2016: US$1=VND22,272) and US$1=THB34.8873 (2016:
US$1=THB35.5893).
2 Net operating costs and operating profit
Group
Three months ended 31st March 2017 2016 Change
US$m US$m %
Cost of sales (3,421.1) (3,001.8) 14
Other operating income 51.8 54.2 -4
Selling and distribution expenses (196.2) (170.6) 15
Administrative expenses (231.0) (221.6) 4
Other operating expenses (13.4) (23.8) -44
---------- ----------
Net operating costs (3,809.9) (3,363.6) 13
========== ==========
Operating profit is determined after
including:
Depreciation of property, plant and equipment (122.5) (123.4) -1
Depreciation of bearer plants (5.8) (5.0) 16
Amortisation of leasehold land use rights
and intangible assets (24.7) (22.9) 8
Profit/(loss) on disposal of:
* property, plant and equipment 0.7 5.9 -88
1.2 -
* leasehold land use rights nm
Loss on disposal/write-down of repossessed
assets (14.0) (14.6) -4
Dividend and interest income from investments 9.7 10.1 -4
Write-down of stocks (1.1) (0.8) 38
Impairment of debtors (1) (36.9) (18.1) 104
Net exchange loss (2) (3.6) (16.0) -78
========== ==========
nm - not meaningful
(1) Increase due mainly to impairment of financing debtors
(2) Decrease due mainly to lower net impact of stronger rupiah
on monetary assets and liabilities denominated in US dollars
3 Tax
The provision for income tax is based on the statutory tax rates
of the respective countries in which the companies operate after
taking into account non-deductible expenses and group tax
relief.
4 Earnings per share
Group
Three months ended 31st March 2017 2016
US$m US$m
Basic and diluted earnings per share
Profit attributable to shareholders 210.4 140.6
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic earnings per share USc53 USc36
====== ======
Diluted earnings per share USc53 USc36
====== ======
Basic and diluted underlying earnings per
share
Underlying profit attributable to shareholders 202.0 140.6
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic earnings per share USc51 USc36
====== ======
Diluted earnings per share USc51 USc36
====== ======
As at 31st March 2016 and 2017, there were no dilutive potential
ordinary shares in issue.
A reconciliation of the profit attributable to shareholders and
underlying profit attributable to shareholders is as follows:
Group
Three months ended 31st March 2017 2016
US$m US$m
Profit attributable to shareholders 210.4 140.6
Less: Non-trading item
Gain on valuation at fair value of an investment 8.4 -
held by an associate
Underlying profit attributable to shareholders 202.0 140.6
====== ======
5 Borrowings
Group
At At
31.3.2017 31.12.2016
US$m US$m
Long-term borrowings:
* secured 1,496.4 1,229.2
* unsecured 813.9 638.2
---------- -----------
2,310.3 1,867.4
---------- -----------
Current borrowings:
* secured 1,838.9 1,972.2
* unsecured 1,668.3 1,471.0
---------- -----------
3,507.2 3,443.2
---------- -----------
Total borrowings 5,817.5 5,310.6
========== ===========
Certain subsidiaries of the Group have pledged their assets in
order to obtain bank facilities from financial institutions. The
value of assets pledged was US$1,940.7 million (31st December 2016:
US$1,884.7 million).
6 Share capital
Group
2017 2016
US$m US$m
Three months ended 31st March
Issued and fully paid:
Balance at 1st January and 31st March
* 395,236,288 (2016: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the period
between 1st January 2017 and 31st March 2017. The Company did not
hold any treasury shares as at 31st March 2017 (31st March 2016:
Nil) and did not have any unissued shares under convertibles as at
31st March 2017 (31st March 2016: Nil).
As at 31st March 2017, the Company had utilised S$930 million of
the S$1,028 million rights issue proceeds raised from the 2015
rights issue exercise. The utilisation of the rights issue proceeds
is in accordance with the intended use of proceeds as stated in the
Offer Information Statement dated 29th June 2015, registered by the
Company with the Monetary Authority of Singapore.
7 Revenue reserve
Group Company
2017 2016 2017 2016
US$m US$m US$m US$m
Movements:
Balance at 1st January 5,508.7 5,065.3 654.2 628.2
Asset revaluation reserve realised
on disposal of assets - 0.2 - -
Defined benefit pension plans
- remeasurements 0.3 0.4 - -
- deferred tax (0.1) (0.1) - -
Share of associates' and joint ventures'
remeasurements
of defined benefit pension plans,
net of tax (0.3) (0.3) - -
Profit attributable to shareholders 210.4 140.6 (0.3) (4.9)
Change in shareholding - 0.1 - -
Balance at 31st March 5,719.0 5,206.2 653.9 623.3
======= ======= ===== =====
8 Other reserves
Group Company
2017 2016 2017 2016
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 400.4 346.8 - -
Translation reserve (1,476.4) (1,455.6) 249.6 327.3
Fair value reserve 18.5 12.7 4.7 3.5
Hedging reserve (12.6) (10.7) - -
Other reserve 3.3 3.3 - -
--------- --------- ----- -----
Balance at 31st March (1,066.8) (1,103.5) 254.3 330.8
========= ========= ===== =====
Movements:
Asset revaluation reserve
Balance at 1st January 400.4 347.0 - -
Reserve realised on disposal of assets - (0.2) - -
--------- --------- ----- -----
Balance at 31st March 400.4 346.8 - -
========= ========= ===== =====
Translation reserve
Balance at 1st January (1,546.7) (1,642.1) 175.5 223.9
Translation difference 70.3 186.5 74.1 103.4
--------- --------- ----- -----
Balance at 31st March (1,476.4) (1,455.6) 249.6 327.3
========= ========= ===== =====
Fair value reserve
Balance at 1st January 13.0 5.2 4.7 3.5
Available-for-sale investments
- fair value changes 4.5 6.0 - -
* deferred tax (0.1) (0.1) - -
* transfer to profit and loss - 0.1 - -
Share of associates' and joint ventures'
fair
value changes of available-for-sale
investments, net of tax 1.1 1.5 - -
--------- --------- ----- -----
Balance at 31st March 18.5 12.7 4.7 3.5
========= ========= ===== =====
Group Company
2017 2016 2017 2016
US$m US$m US$m US$m
Hedging reserve
Balance at 1st January (5.1) 6.4 - -
Cash flow hedges
- fair value changes (10.0) (23.5) - -
- deferred tax 2.0 4.9 - -
- transfer to profit and loss 2.2 4.3 - -
Share of associates' and joint ventures'
fair
value changes of cash flow hedges,
net of tax (1.7) (2.8) - -
Balance at 31st March (12.6) (10.7) - -
====== ====== ==== ====
Other reserve
Balance at 1st January and 31st March 3.3 3.3 - -
====== ====== ==== ====
9 Non-controlling interests
Group
2017 2016
US$m US$m
Balance at 1st January 6,321.8 5,560.9
Available-for-sale investments
- fair value changes 5.0 7.0
- deferred tax (0.1) (0.1)
Share of associates' and joint ventures'
fair value changes of
available-for-sale investments, net of tax 1.0 1.6
Cash flow hedges
- fair value changes (11.3) (25.9)
- deferred tax 2.3 5.5
- transfer to profit and loss 2.1 4.3
Share of associates' and joint ventures'
fair value changes of cash
flow hedges, net of tax (1.6) (2.7)
Defined benefit pension plans
- remeasurements 0.6 0.7
- deferred tax (0.1) (0.2)
Share of associates' and joint ventures'
remeasurements
of defined benefit pension plans, net of
tax (0.4) (0.5)
Translation difference 52.8 210.0
Profit for the period 258.6 150.1
Dividends paid (7.0) (0.1)
Acquisition of subsidiary 6.6 -
Other (0.8) -
------- -------
Balance at 31st March 6,629.5 5,910.6
======= =======
10 Cash flows from operating activities
Group
2017 2016
US$m US$m
Profit before tax 568.0 356.7
Adjustments for:
------- -------
Financing income (27.9) (18.9)
Financing charges 38.4 29.0
Share of associates' and joint ventures' results
after tax (155.8) (81.5)
Depreciation of property, plant, equipment 122.5 123.4
Depreciation of bearer plants 5.8 5.0
Amortisation of leasehold land use rights
and intangible assets 24.7 22.9
Impairment of debtors 36.9 18.1
(Profit)/loss on disposal of:
* property, plant and equipment (0.7) (5.9)
* leasehold land use rights (1.2) -
* investments - 0.1
Loss on disposal/write-down of repossessed
assets 14.0 14.6
Write-down of stocks 1.1 0.8
Changes in provisions 8.2 8.3
Foreign exchange loss 8.6 12.2
74.6 128.1
Operating profit before working capital changes 642.6 484.8
Changes in working capital:
------- -------
Stocks (1) (201.7) 89.5
Concession rights (24.7) (8.5)
Financing debtors (43.2) (28.7)
Debtors (2) (258.3) (105.7)
Creditors (3) 278.5 66.6
Pensions 7.2 6.1
(242.2) 19.3
------- -------
Cash flows from operating activities 400.4 504.1
======= =======
(1) Increase in stocks balance due mainly to longer inventory
days and purchases to support sales activities
(2) Increase in debtors balance due mainly to dividend
receivables from associates and joint ventures and higher sales
activities
(3) Increase in creditors balance due mainly to purchases to support sales activities
11 Interested person transactions
Aggregate value Aggregate value
of all interested of all interested
person transactions person transactions
(excluding transactions conducted under
less than S$100,000 shareholders'
and transactions mandate pursuant
conducted under to Rule 920 (excluding
shareholders' transactions
mandate pursuant less than S$100,000)
to Rule 920)
---------------------------- -----------------------------
Name of interested person US$m US$m
Three months ended 31st March
2017
Jardine Matheson Limited
- management support services - 1.2
PT Hero Supermarket Tbk
- transportation services - 0.1
Jardine Matheson (Singapore)
Ltd
- rental of premises - 0.1
- 1.4
================================= ========================
12 Additional information
Group
Three months ended 31st March 2017 2016 Change
US$m US$m %
Astra International
Automotive 80.7 54.0 49
Financial services 42.2 23.8 77
Heavy equipment and mining 33.9 16.4 107
Agribusiness 24.0 12.4 94
Infrastructure & logistics 2.5 2.5 -
Information technology 1.0 1.3 -23
Property 0.2 0.1 100
------ ------
184.5 110.5 67
------
Direct Motor Interests
Vietnam 7.4 20.5 -64
Singapore 11.9 9.9 20
Malaysia - 1.4 -100
Indonesia (Tunas Ridean) 3.4 3.4 -
Myanmar (0.2) - -100
------ ------
22.5 35.2 -36
------ ------
Corporate costs (5.0) (5.1) -2
Underlying profit attributable to shareholders 202.0 140.6 44
====== ======
13 Others
The results do not include any pre-acquisition profits and have
not been affected by any item, transaction or event of a material
or unusual nature.
No significant event or transaction other than as contained in
this report has occurred between 1st April 2017 and the date of
this report.
The Company confirms that it has procured undertakings from all
its directors and executive officers under Rule 720(1) of the
Listing Manual.
- end -
For further information, please contact:
Jardine Cycle & Carriage Limited
Jeffery Tan Eng Heong
Tel: 65 64708111
The full text of the Financial Statements and Dividend
Announcement for the first quarter ended 31st March 2017 can be
accessed through the internet at www.jcclgroup.com.
Corporate Profile
Jardine Cycle & Carriage ("JC&C") is a leading
Singapore-listed company and a member of the Jardine Matheson
Group. It has an interest of just over 50% in Astra International
("Astra"), a premier listed Indonesian conglomerate, as well as
Direct Motor Interests and Other Interests in Southeast Asia.
Together with its subsidiaries and associates, JC&C employs
over 240,000 people across Indonesia, Vietnam, Singapore, Thailand,
Malaysia and Myanmar.
Astra is the largest independent automotive group in Southeast
Asia, with further interests in financial services, heavy equipment
and mining, agribusiness, infrastructure and logistics, information
technology and property. JC&C's Direct Motor Interests operate
in Singapore, Malaysia and Myanmar under the Cycle & Carriage
banner, and through Tunas Ridean in Indonesia and Truong Hai Auto
Corporation in Vietnam. JC&C's Other Interests comprise
interests in market leading businesses in the region through which
JC&C gains exposure to key economies by supporting such
businesses in their long term development.
Jardine Matheson is a diversified business group focused
principally on Asia. Its businesses comprise a combination of cash
generating activities and long-term property assets. In addition to
its 75% shareholding in the Company, the Jardine Matheson Group's
interests include Jardine Pacific, Jardine Motors, Jardine Lloyd
Thompson, Hongkong Land, Dairy Farm and Mandarin Oriental. These
companies are leaders in the fields of engineering and
construction, transport services, motor vehicles, insurance
broking, property investment and development, retailing,
restaurants and luxury hotels.
The company news service from the London Stock Exchange
END
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