TIDMJDS TIDMJAR
RNS Number : 0687M
Jardine Strategic Hldgs Ltd
26 April 2018
To: Business Editor 26th April 2018
For immediate release
Jardine Cycle & Carriage Limited
2018 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
26th April 2018
JARDINE CYCLE & CARRIAGE LIMITED
2018 FIRST QUARTER FINANCIAL STATEMENTS AND DIVID
ANNOUNCEMENT
Highlights
-- Underlying earnings per share up 8%
-- Astra's contribution slightly down year-on-year
-- Higher results from Direct Motor Interests and Other Strategic Interests
"Astra is continuing to benefit from stable coal prices,
although the car market is increasingly competitive. While the
Group's Direct Motor Interests are also likely to continue to face
challenges, its Other Strategic Interests are expected to produce
growth. Overall, the current outlook for the full year is for a
satisfactory performance."
Ben Keswick, Chairman
26th April 2018
Group Results
-------------------------------- --------------------------------- -------- -----------
Three months ended 31st March
-------------------------------- -------------------------------------------- -----------
Restated(1)
2018 2017 Change 2018
US$m US$m % S$m
---------------------------------- --------------- --------------- -------- -----------
Revenue 4,643 4,149 12 6,112
Profit after tax(2) 412 472 -13 542
Underlying profit attributable
to
shareholders 219 202 8 288
Profit attributable to
shareholders(2) 135 212 -36 178
---------------------------------- --------------- --------------- -------- -----------
USc USc Sc
---------------------------------- --------------- --------------- -------- -----------
Underlying earnings per
share 55 51 8 73
Earnings per share 34 54 -36 45
At At At
31.3.2018 31.12.2017 31.3.2018
---------------------------------- --------------- --------------- -------- -----------
US$m US$m S$m
---------------------------------- --------------- --------------- -------- -----------
Shareholders' funds 6,545 6,408 2 8,588
---------------------------------- --------------- --------------- -------- -----------
US$ US$ S$
---------------------------------- --------------- --------------- -------- -----------
Net asset value per share 16.56 16.21 2 21.7
---------------------------------- --------------- --------------- -------- -----------
The exchange rate of US$1=S$1.31 (31st December 2017:
US$1=S$1.34) was used for translating assets and liabilities at the
balance sheet date and US$1=S$1.32 (31st March 2017: US$1=S$1.41)
was used for translating the results for the period.
The financial results for the three months ended 31st March 2018
and 31st March 2017 have been prepared in accordance with
International Financial Reporting Standards. These results have not
been audited or reviewed by the auditors.
(1) The accounts have been restated due to the adoption of IFRS
9 "Financial Instruments" and IFRS 15 "Revenue Contracts with
Customers", as set out in note 1 to the financial statements.
(2) Includes changes in fair value of the Group's investments in
equity instruments under IFRS 9.
CHAIRMAN'S STATEMENT
Overview
The Group reported improved results in the first quarter of 2018
as a lower contribution from Astra was offset by higher
contributions from the Group's Direct Motor Interests and Other
Strategic Interests.
Performance
The Group's revenue for the three months ended 31st March was
12% higher at US$4.6 billion. Underlying profit attributable to
shareholders grew 8% to US$219 million, and underlying profit per
share was 8% higher at USc55 per share. Profit attributable to
shareholders was US$135 million, compared to US$212 million in the
equivalent period last year, following the recognition of fair
value losses on the adoption of new accounting standards.
Astra's contribution of US$177 million to the Group's underlying
profit was 4% down. Underlying profit from the Group's Direct Motor
Interests was 23% higher at US$28 million, while the Group's Other
Strategic Interests made a contribution of US$10 million.
The Group's consolidated net debt, excluding Astra's financial
services subsidiaries, was US$1.4 billion at the end of March 2018,
compared to US$819 million at the prior year end. The increase was
primarily due to Astra's toll road and GO-JEK investments and
capital expenditure in its mining contracting business, together
with the investments by the Group in Toyota Motor Corporation and
other associates and joint ventures. The net debt of the Company
increased to US$1.3 billion, from US$1.2 billion at the end of
2017. Net debt within Astra's financial services subsidiaries of
US$3.3 billion was slightly down from the prior year end.
The Board has not declared a dividend for the three months ended
31st March 2018 (31st March 2017: Nil).
Astra
Astra reported a net profit equivalent to US$365 million, under
Indonesian accounting standards, 2% lower in its local currency
terms, as lower results were experienced in some of its business
segments, particularly in automotive and agribusiness, which more
than offset the improved performance from its heavy equipment,
mining, construction and energy business.
Automotive
Net income from the group's automotive division was down by 8%
at US$155 million, mainly due to increased competition in the car
segment.
The wholesale market for cars grew by 3% to 292,000 units.
Astra's car sales were, however, 12% lower at 142,000 units due to
the impact of intense competition which resulted in a decline in
market share from 57% to 49%. The group launched seven new models
and two revamped models during the period.
The wholesale market for motorcycles increased by 4% to 1.5
million units. Astra Honda Motor's domestic sales were flat at 1.1
million units, mainly due to inventory management ahead of several
key model launches, which resulted in its market share decreasing
from 77% to 73%. The group launched one new model and five revamped
models during the period.
Astra Otoparts, the group's components business, reported net
income which was 1% lower at US$11 million, despite an 11% increase
in revenue. The decline in net income was mainly due to reduced
contributions from its joint venture and associate companies, which
were impacted by forex translation losses.
Financial Services
Net income from the group's financial services division
decreased by 6% to US$78 million, due to a lower contribution from
Permata Bank.
The group's consumer finance businesses saw a 5% decrease in the
amount financed. The contribution from the group's car-focused
finance companies decreased by 17% to US$17 million mainly due to
increased loan loss provisions in the low cost car segment.
Motorcycle-focused Federal International Finance's net income was
up 22% at US$40 million, mainly due to a larger loan portfolio.
The amount financed through the group's heavy equipment-focused
finance operations decreased by 35% to US$62 million, mainly due to
reduced lending to small and medium-sized borrowers.
Permata Bank, in which Astra holds a 44.6% interest, reported
net income of US$12 million, compared to US$34 million recorded in
the first quarter of last year. The results benefited from a
one-off gain on the sale of non-performing loans. Excluding this
one-off gain, the bank's net income would have increased mainly
driven by lower loan impairment costs which fell from US$50 million
in the first quarter last year to US$34 million in this first
quarter. The bank's gross and net non-performing loan ratios at the
end of March 2018 were relatively stable at 4.6% and 1.7%,
respectively.
Asuransi Astra Buana, the group's general insurance company,
reported net income 15% higher at US$18 million, due to increased
investment income. During the period, the group's life insurance
joint venture, Astra Aviva Life, acquired more than 78,000 new
individual life customers and 411,000 new participants for its
corporate employee benefits programmes.
Heavy Equipment, Mining, Construction and Energy
Net income from the group's heavy equipment, mining,
construction and energy division increased by 68% to US$111
million.
United Tractors, which is 59.5%-owned, reported net income 69%
higher at US$186 million. The increase was mainly due to improved
performances in its construction machinery and mining contracting
businesses, as well as its mining operations, as a result of
increased coal prices.
In its construction machinery business, Komatsu heavy equipment
sales were up 38% at 1,171 units, while parts and service revenues
were also higher. The mining contracting operations of Pamapersada
Nusantara recorded a 6% higher coal production at 26.5 million
tonnes and 22% higher overburden removal at 207 million bank cubic
metres. United Tractors' mining subsidiaries reported 36% higher
coal sales at 2.6 million tonnes.
In the first quarter of 2018, Suprabari Mapanindo Mineral,
United Tractors' 80.1%-owned coking coal company which became
operational in late 2017, achieved coal sales at 111,000
tonnes.
General contractor Acset Indonusa, a 50.1% subsidiary of United
Tractors, reported net income up 27% at US$3 million due to higher
revenue mainly from its infrastructure construction projects.
Agribusiness
Net income from the group's agribusiness division was down by
55% at US$21 million.
Astra Agro Lestari, which is 79.7%-owned, reported net income
55% lower at US$26 million, primarily due to lower crude palm oil
prices. Achieved average crude palm oil prices were 12% lower at
Rp7,855/kg, while sales of crude palm oil and its derivatives were
17% higher at 480,000 tonnes.
Infrastructure and Logistics
The group's infrastructure and logistics division reported a net
loss of US$2 million, compared with a net profit of US$5 million in
the first quarter of 2017, as results were affected by initial
losses on the Cikopo-Palimanan toll road acquired in the first half
of 2017.
The group's portfolio of toll road interests totals 353km, of
which 269km is operational. At the mature 72.5km Tangerang-Merak
toll road, operated by 79.3%-owned Marga Mandalasakti, toll revenue
increased by 14% to US$19 million. At the wholly-owned 40.5km
Jombang-Mojokerto toll road, 39.6km became fully operational in
September 2017 and recorded US$3 million of toll revenue during the
first quarter of 2018. Toll revenue at the 45%-owned 116.8km
Cikopo-Palimanan increased by 4% to US$22 million. At the 40%-owned
72.6km Semarang-Solo toll road, of which 40.1km is now in
operation, toll revenue was US$4 million, 36% higher than the
comparable period last year.
The group also has a 40% stake in the 11.2km Kunciran-Serpong
toll road and a 25% stake in the 39.8km Serpong-Balaraja toll road,
both of which are under development.
Serasi Autoraya's net income increased by 47% to US$4 million,
due to higher net margins in its car leasing and rental businesses,
despite a 4% decline in vehicles under contract.
Information Technology
Net income from the group's information technology division was
4% higher at US$2 million.
Astra Graphia, which is 76.9%-owned, reported net income higher
at US$3 million due to higher revenues across all its business
segments.
Property
The group's property division reported a marginal net income
compared to a net income of US$3 million in the prior year,
primarily due to lower development earnings recognised from its
Anandamaya Residences project.
Arumaya, the group's 60%-held residential development project
located in South Jakarta, commenced marketing in March 2018 and is
scheduled for completion in 2022.
50%-owned Astra Land which owns 67% of Astra Modern Land, is in
the process of developing a 67-hectare site in East Jakarta and
started marketing activities for its first two clusters of landed
houses during the first quarter of 2018.
Direct Motor Interests
The Group's Direct Motor Interests contributed an underlying
profit of US$28 million, 23% above the previous year.
Cycle & Carriage Singapore's profit rose as margins improved
on passenger cars as well as increased contributions from used cars
and parts trading. In Malaysia, Cycle & Carriage Bintang
recorded a loss despite higher unit sales, mainly due to higher
operating expenses and financing costs. In Indonesia, Tunas
Ridean's contribution was higher following stronger performances
from its motor vehicle and motorcycle sales operations and from
Mandiri Tunas Finance, partly offset by a lower profit from its
rental business. In Vietnam, Truong Hai Auto Corporation's
("Thaco") contribution increased year-on-year, as the comparable
results were negatively affected by stock provisions. Thaco's sales
were higher in the first three months of 2018, as the full impact
of the removal of CBU import tariffs in January 2018 has yet to be
felt, and margins remained stable. In March 2018, the Group
increased its shareholding in Tunas Ridean from 44.37% to
45.12%.
Other Strategic Interests
As in the previous year, the Group did not recognise any
contribution in the first quarter from its 25.54% holding in Siam
City Cement Public Company in Thailand and its 24.65% holding in
Refrigeration Electrical Engineering Corporation ("REE Corp") in
Vietnam, as both companies have yet to announce their first quarter
results. Together these results are not expected to have a material
impact on the Group, and will be accounted for in the second
quarter. The Group recognised dividend income of US$9 million in
the first quarter from its 10% interest in Vinamilk, which was
acquired in November 2017.
Since the beginning of the year, the Group has increased its
shareholding in REE Corp from 23.91% to 24.65%. The Group also
invested US$200 million in shares of Toyota Motor Corporation,
which is an important long-standing business partner of Astra.
Outlook
Astra is continuing to benefit from stable coal prices, although
the car market is increasingly competitive. The Group's Direct
Motor Interests are likely to continue to face challenges, while
its Other Strategic Interests are expected to produce growth.
Overall, the current outlook for the full year is for a
satisfactory performance.
Ben Keswick, Chairman
26th April 2018
Statement pursuant to Rule 705(5) of the Listing Manual
The directors confirm that, to the best of their knowledge,
nothing has come to the attention of the Board of Directors which
may render the accompanying unaudited interim financial results for
the three months ended 31st March 2018 to be false or misleading in
any material respect.
On behalf of the Directors
Ben Keswick
Director
Hassan Abas
Director
26th April 2018
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the three months ended
31st March 2018
-----------------------------------------------------------------
Restated
2018 2017 Change
Note US$m US$m %
Revenue 4,643.2 4,148.7 12
Net operating costs 2 (4,211.6) (3,723.2) 13
Operating profit 2 431.6 425.5 1
Financing income 22.4 27.9 -20
Financing charges (47.6) (38.4) 24
---------- ----------
Net financing charges (25.2) (10.5) 140
Share of associates'
and joint
ventures' results after
tax 126.2 155.8 -19
Profit before tax 532.6 570.8 -7
Tax 3 (120.8) (99.0) 22
Profit after tax 411.8 471.8 -13
========== ==========
Profit attributable to:
Shareholders of the Company 135.4 211.7 -36
Non-controlling interests 276.4 260.1 6
411.8 471.8 -13
========== ==========
USc USc
----------------------------- ----- ---------- ---------- -------
Earnings per share 4 34 54 -36
----------------------------- ----- ---------- ---------- -------
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the three
months ended 31st March 2018
--------------------------------------------------------------
Restated
2018 2017
US$m US$m
Profit for the period 411.8 471.8
Items that will not be reclassified
to profit or loss:
-------- ---------
Remeasurements of defined benefit
pension plans (1.0) 0.9
Tax on items that will not be reclassified 0.2 (0.2)
Share of other comprehensive income/(expense)
of associates
and joint ventures, net of tax 0.6 (0.7)
-------- ---------
(0.2) -
Items that may be reclassified subsequently
to profit or loss:
-------- ---------
Translation difference
- gain/(loss) arising during the
period (134.7) 123.6
Financial assets at FVOCI(1)
- gain/(loss) arising during the
period (3.3) 6.7
- transfer to profit and loss (1.4) -
Cash flow hedges
- loss arising during the period (0.1) (21.3)
- transfer to profit and loss 0.3 4.3
Tax relating to items that may be
reclassified 0.1 4.1
Share of other comprehensive income/(expense)
of associates
and joint ventures, net of tax 27.8 (1.2)
(111.3) 116.2
Other comprehensive income/(expense)
for the period (111.5) 116.2
Total comprehensive income for the
period 300.3 588.0
======== =========
Attributable to:
Shareholders of the Company 107.4 278.8
Non-controlling interests 192.9 309.2
300.3 588.0
======== =========
(1) Fair value through other comprehensive income ("FVOCI")
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 31st March 2018
-----------------------------------------------
Restated Restated
At At At
Note 31.3.2018 31.12.2017 1.1.2017
US$m US$m US$m
Non-current assets
Intangible assets 1,068.7 1,079.5 972.3
Leasehold land use rights 608.0 625.0 620.4
Property, plant and equipment 3,484.4 3,410.2 2,978.5
Investment properties 619.4 618.6 460.2
Bearer plants 493.6 498.0 496.8
Interests in associates
and joint ventures 4,286.5 4,274.3 3,738.5
Non-current investments 2,342.9 1,973.3 487.8
Non-current debtors 2,759.0 2,827.1 2,691.6
Deferred tax assets 327.7 322.2 291.7
---------- -----------
15,990.2 15,628.2 12,737.8
---------- ----------- ----------
Current assets
Current investments 18.6 22.7 65.2
Properties for sale 251.7 254.0 -
Stocks 1,619.6 1,723.8 1,578.6
Current debtors 5,491.4 5,072.8 4,604.1
Current tax assets 129.6 120.5 136.9
Bank balances and other
liquid funds
---------- ----------- ----------
- non-financial services
companies 2,321.7 2,398.7 2,237.2
- financial services companies 231.5 241.1 228.5
---------- ----------- ----------
2,553.2 2,639.8 2,465.7
---------- ----------- ----------
10,064.1 9,833.6 8,850.5
---------- ----------- ----------
Total assets 26,054.3 25,461.8 21,588.3
---------- ----------- ----------
Non-current liabilities
Non-current creditors 167.9 170.8 156.7
Provisions 117.3 113.7 97.6
Long-term borrowings 5
---------- ----------- ----------
- non-financial services
companies 1,249.3 845.8 349.9
- financial services companies 1,600.7 1,486.7 1,517.5
---------- ----------- ----------
2,850.0 2,332.5 1,867.4
Deferred tax liabilities 211.9 212.9 188.0
Pension liabilities 265.9 262.2 215.9
---------- -----------
3,613.0 3,092.1 2,525.6
---------- ----------- ----------
Current liabilities
Current creditors 4,077.8 4,223.5 3,363.6
Provisions 90.9 87.2 85.7
Current borrowings 5
---------- ----------- ----------
- non-financial services
companies 2,445.0 2,371.7 1,178.6
- financial services companies 1,885.7 2,154.1 2,264.6
---------- ----------- ----------
4,330.7 4,525.8 3,443.2
Current tax liabilities 180.7 135.4 95.7
---------- -----------
8,680.1 8,971.9 6,988.2
---------- -----------
Total liabilities 12,293.1 12,064.0 9,513.8
---------- ----------- ----------
Net assets 13,761.2 13,397.8 12,074.5
========== =========== ==========
Equity
Share capital 6 1,381.0 1,381.0 1,381.0
Revenue reserve 7 6,312.4 6,147.2 5,515.6
Other reserves 8 (1,148.4) (1,120.1) (1,142.5)
---------- -----------
Shareholders' funds 6,545.0 6,408.1 5,754.1
Non-controlling interests 9 7,216.2 6,989.7 6,320.4
---------- -----------
Total equity 13,761.2 13,397.8 12,074.5
========== =========== ==========
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the three months
ended 31st March 2018
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
2018
Balance at 1st
January 1,381.0 6,012.8 402.4 (1,521.7) 152.4 6,426.9 7,014.1 13,441.0
Effect of
adoption of IFRS
9 and IFRS 15 - 160.9 - - (153.4) 7.5 14.3 21.8
-------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance as at 1st
January
as restated 1,381.0 6,173.7 402.4 (1,521.7) (1.0) 6,434.4 7,028.4 13,462.8
Total
comprehensive
income - 135.5 - (33.7) 5.6 107.4 192.9 300.3
Dividends paid to
non-controlling
interests - - - - - - (25.3) (25.3)
Capital
contribution by
non-controlling
interests - - - - - - 17.3 17.3
Change in
shareholding - - - - - - 2.9 2.9
Other - 3.2 - - - 3.2 - 3.2
-------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance at 31st
March 1,381.0 6,312.4 402.4 (1,555.4) 4.6 6,545.0 7,216.2 13,761.2
======== ======== ============ ============ ========= ======== ============= =========
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
Effect of
adoption of IFRS
9 and IFRS 15 - 6.9 - - (7.4) (0.5) (1.4) (1.9)
-------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance as at 1st
January
as restated 1,381.0 5,515.6 400.4 (1,546.7) 3.8 5,754.1 6,320.4 12,074.5
Total
comprehensive
income - 211.6 - 70.5 (3.3) 278.8 309.2 588.0
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 5,727.2 400.4 (1,476.2) 0.5 6,032.9 6,628.4 12,661.3
======== ======== ============ ============ ========= ======== ============= =========
Jardine Cycle & Carriage Limited
Company Balance Sheet at 31st March 2018
------------------------------------------
Restated
At At At
Note 31.3.2018 31.12.2017 1.1.2017
US$m US$m US$m
Non-current assets
Property, plant and equipment 35.1 34.6 32.0
Interests in subsidiaries 1,413.9 1,325.6 1,226.6
Interests in associates and
joint ventures 1,006.5 983.9 776.7
Non-current investment 185.1 - 11.0
-----------
2,640.6 2,344.1 2,046.3
---------- ----------- ---------
Current assets
Current debtors 1,226.7 1,403.6 42.8
Bank balances and other liquid
funds 96.6 96.5 154.1
---------- ----------- ---------
1,323.3 1,500.1 196.9
---------- ----------- ---------
Total assets 3,963.9 3,844.2 2,243.2
---------- ----------- ---------
Non-current liabilities
Deferred tax liabilities 6.3 6.2 5.6
-----------
6.3 6.2 5.6
---------- ----------- ---------
Current liabilities
Current creditors 78.1 80.8 20.5
Current borrowings 1,347.1 1,262.8 -
Current tax liabilities 1.8 1.7 1.7
-----------
1,427.0 1,345.3 22.2
---------- ----------- ---------
Total liabilities 1,433.3 1,351.5 27.8
---------- ----------- ---------
Net assets 2,530.6 2,492.7 2,215.4
========== =========== =========
Equity
Share capital 6 1,381.0 1,381.0 1,381.0
Revenue reserve 7 745.4 754.6 658.9
Other reserves 8 404.2 357.1 175.5
-----------
Total equity 2,530.6 2,492.7 2,215.4
========== =========== =========
Net asset value per share US$6.40 US$6.31 US$5.61
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the three months
ended 31st March 2018
----------------------------------------------------------------
2018 2017
US$m US$m
Loss for the period (9.2) (0.3)
Items that may be reclassified subsequently
to profit or loss:
------ --------
Translation difference
- gain arising during the period 47.1 74.1
Other comprehensive income for the
period 47.1 74.1
Total comprehensive income for the
period 37.9 73.8
====== ========
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the three months ended
31st March 2018
-------------------------------------------------------------------
Share Revenue Translation Fair value Total
capital reserve reserve reserve equity
US$m US$m US$m US$m US$m
2018
Balance at 1st January 1,381.0 754.6 357.1 - 2,492.7
Total comprehensive
income - (9.2) 47.1 - 37.9
Balance at 31st
March 1,381.0 745.4 404.2 - 2,530.6
=========== ========= ============ =========== ========
2017
Balance at 1st January 1,381.0 654.2 175.5 4.7 2,215.4
Effect of adoption
of IFRS 9 - 4.7 - (4.7) -
----------- --------- ------------ ----------- --------
Balance as at 1st
January as restated 1,381.0 658.9 175.5 - 2,215.4
Total comprehensive
income - (0.3) 74.1 - 73.8
Balance at 31st
March 1,381.0 658.6 249.6 - 2,289.2
=========== ========= ============ =========== ========
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the three months ended
31st March 2018
-----------------------------------------------------------------
Restated
2018 2017
Note US$m US$m
Cash flows from operating activities
Cash generated from operations 10 513.3 405.4
Interest paid (31.2) (29.1)
Interest received 22.9 25.4
Other finance costs paid (14.8) (18.4)
Income tax paid (93.9) (63.1)
------- --------
(117.0) (85.2)
Net cash flows from operating activities 396.3 320.2
Cash flows from investing activities
------- --------
Sale of property, plant and equipment 3.4 2.6
Sale of investments 77.3 6.0
Sale of leasehold land use rights 12.0 1.5
Sale of subsidiaries, net of cash
disposed 0.2 -
Purchase of intangible assets (18.8) (17.7)
Purchase of leasehold land use rights (1.3) (13.6)
Purchase of property, plant and equipment (238.5) (176.2)
Purchase of investment properties (17.9) (25.7)
Additions to bearer plants (9.7) (9.6)
Purchase of subsidiaries, net of
cash acquired (85.5) (8.4)
Purchase of shares in associates
and joint ventures (99.8) (411.0)
Purchase of investments (456.0) (14.0)
Dividends received from associates
and joint ventures (net) 5.2 7.3
Net cash flows used in investing
activities (829.4) (658.8)
Cash flows from financing activities
------- --------
Drawdown of loans 1,155.3 1,163.1
Repayment of loans (780.8) (725.1)
Changes in controlling interests
in subsidiaries 2.9 -
Investment by/(payment to) non-controlling
interests 17.3 (0.8)
Dividends paid to non-controlling
interests (25.3) -
Net cash flows from financing activities 369.4 437.2
Net change in cash and cash equivalents (63.7) 98.6
Cash and cash equivalents at the
beginning of the period 2,639.8 2,465.7
Effect of exchange rate changes (22.9) 25.9
Cash and cash equivalents at the
end of the period 2,553.2 2,590.2
======= ========
Jardine Cycle & Carriage Limited
Notes to the financial statements for the three months ended
31st March 2018
--------------------------------------------------------------
1 Basis of preparation
The financial statements are consistent with those set out in
the 2017 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
2017 audited accounts except for the adoption of the following new
standards, which are effective from 1st January 2018.
IFRS 9 Financial Instruments
IFRS 15 Revenue from Contracts with
Customers
Under IFRS 9, the gains and losses arising from changes in fair
value of the Group's investments in equity instruments, previously
classified as available-for-sale, will be recognised in profit and
loss, instead of through other comprehensive income. Such fair
value gains or losses on revaluation of these investments will be
classified as non-trading items, and hence will not have any impact
on the Group's underlying profit attributable to shareholders. The
forward-looking expected credit loss model will affect mainly the
loan impairment provisions of the Group's financial services
companies in Indonesia. The new hedge accounting rules will align
the accounting for hedging instruments closely with the Group's
risk management practices, but have no significant impact on the
Group's results.
The adoption of IFRS 9 has been accounted for retrospectively
and the comparative financial statements have been restated. The
adoption has resulted in an increase in the profit attributable to
shareholders for the financial period 3 months ended 31st March
2017 by US$1.3 million and a decrease in shareholders' funds as at
31st December 2017 by US$16.4 million.
IFRS 15 establishes a comprehensive 5-step framework for the
recognition of revenue which replaces IAS 11 "Construction
Contracts" and IAS 18 "Revenue" which covers contracts for goods
and services. The core principle in the framework is that revenue
is recognised when control of a good or service transfers to a
customer. It provides clarification on recognition criteria for
certain revenue elements, resulting in restatements to revenue and
net operating costs, respectively.
The adoption of IFRS 15 has been accounted for retrospectively
and the comparative financial statements have been restated. The
adoption has no significant impact on the Group's profit or
underlying profit attributable to shareholders, but resulted in a
decrease in shareholders' funds as at 31st December 2017 by US$2.4
million.
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$1.3122 (2017: US$1=S$1.337),
US$1= RM3.8663 (2017: US$1= RM4.065), US$1= IDR13,756 (2017:
US$1=IDR13,548), US$1= VND22,808 (2017: US$1= VND22,704) and US$1=
THB31.2640 (2017: US$1=THB32.6890).
The exchange rates used for translating the results for the
period are US$1= S$1.3164 (2017: US$1=S$1.4098), US$1= RM3.8968
(2017: US$1= RM4.4334), US$1= IDR13,625 (2017: US$1= IDR13,342),
US$1=VND22,758 (2017: US$1= VND22,705) and US$1= THB31.3743 (2017:
US$1= THB34.8873).
2 Net operating costs and operating profit
Group
Restated
Three months ended 31st March 2018 2017 Change
US$m US$m %
Cost of sales (3,740.9) (3,337.2) 12
Other operating income 85.9 54.6 57
Selling and distribution expenses (207.3) (196.2) 6
Administrative expenses (252.8) (231.0) 9
Other operating expenses (96.5) (13.4) 620
---------- ----------
Net operating costs (4,211.6) (3,723.2) 13
========== ==========
Operating profit is determined after
including:
Depreciation of property, plant and equipment (139.5) (122.5) 14
Depreciation of bearer plants (6.3) (5.8) 9
Amortisation of leasehold land use rights
and intangible assets (26.0) (24.7) 5
Fair value changes of :
0.1 -
* agricultural produce nm
* other investments (1) (83.3) 2.8 nm
Profit/(loss) on disposal of:
* property, plant and equipment 0.7 0.7 -
* leasehold land use rights 0.2 1.2 -83
1.4 -
* other investments nm
Loss on disposal/write-down of repossessed
assets (14.2) (14.0) 1
Dividend and interest income from investments
(2) 19.8 9.7 104
Write-down of stocks (4.2) (1.1) 282
Impairment of debtors (36.0) (36.9) -2
Net exchange gain/loss (3) 23.4 (3.6) nm
========== ==========
nm - not meaningful
(1) Fair value loss in 2018 relates mainly to equity investment
in Vinamilk and Toyota Motor Corporation
(2) Increase due to dividend from the Vinamilk which was only
acquired in 4Q 2017
(3) Net exchange gain in 2018 relates mainly to the impact of
stronger Singapore dollars on monetary liabilities denominated in
USD
3 Tax
The provision for income tax is based on the statutory tax rates
of the respective countries in which the companies operate after
taking into account non-deductible expenses and group tax
relief.
4 Earnings per share
Group
Restated
Three months ended 31st March 2018 2017
US$m US$m
Basic and diluted earnings per share
Profit attributable to shareholders 135.4 211.7
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic earnings per share USc34 USc54
====== =========
Diluted earnings per share USc34 USc54
====== =========
Basic and diluted underlying earnings per
share
Underlying profit attributable to shareholders 219.0 202.0
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic earnings per share USc55 USc51
====== =========
Diluted earnings per share USc55 USc51
====== =========
As at 31st March 2017 and 2018, there were no dilutive potential
ordinary shares in issue.
A reconciliation of the profit attributable to shareholders and
underlying profit attributable to shareholders is as follows:
Group
Restated
Three months ended 31st March 2018 2017
US$m US$m
Profit attributable to shareholders 135.4 211.7
Less: Non-trading item (net of tax and non-controlling
interests)
------- ---------
Gain on valuation at fair value of an investment
held by an associate - 8.4
Fair value changes of agriculture produce 0.1 -
Fair value changes of other investments (83.7) 1.3
(83.6) 9.7
Underlying profit attributable to shareholders 219.0 202.0
======= =========
5 Borrowings
Group
At At
31.3.2018 31.12.2017
US$m US$m
Long-term borrowings:
- secured 1,564.6 1,509.7
- unsecured 1,285.4 822.8
---------- -----------
2,850.0 2,332.5
---------- -----------
Current borrowings:
- secured 1,658.0 1,640.9
- unsecured 2,672.7 2,884.9
---------- -----------
4,330.7 4,525.8
---------- -----------
Total borrowings 7,180.7 6,858.3
========== ===========
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$1,798.8 million (31st December 2017:
US$1,783.8 million).
6 Share capital
Group
2018 2017
US$m US$m
Three months ended 31st March
Issued and fully paid:
Balance at 1st January and 31st March
* 395,236,288 (2017: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the period
between 1st January 2018 and 31st March 2018. The Company did not
hold any treasury shares as at 31st March 2018 (31st March 2017:
Nil) and did not have any unissued shares under convertibles as at
31st March 2018 (31st March 2017: Nil).
There were no subsidiary holdings (as defined in the Listing
Manual of the SGX-ST) as at 31st March 2018 (31st March 2017:
Nil).
7 Revenue reserve
Group Company
2018 2017 2018 2017
US$m US$m US$m US$m
Movements:
Balance at 1st January 6,012.8 5,508.7 754.6 654.2
Effect of adoption of IFRS 9 and
IFRS 15 160.9 6.9 - 4.7
------- ------- ----- ------
Balance at 1st January as restated 6,173.7 5,515.6 754.6 658.9
Defined benefit pension plans
- remeasurements (0.2) 0.3 - -
- deferred tax - (0.1) - -
Share of associates' and joint ventures'
remeasurements
of defined benefit pension plans,
net of tax 0.3 (0.3) - -
Profit attributable to shareholders 135.4 211.7 (9.2) (0.3)
Others 3.2 - - -
Balance at 31st March 6,312.4 5,727.2 745.4 658.6
======= ======= ===== ======
8 Other reserves
Group Company
2018 2017 2018 2017
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 402.4 400.4 - -
Translation reserve (1,555.4) (1,476.2) 404.2 249.6
Fair value reserve 12.2 9.8 - -
Hedging reserve (10.9) (12.6) - -
Other reserve 3.3 3.3 - -
--------- --------- ----- -----
Balance at 31st March (1,148.4) (1,075.3) 404.2 249.6
========= ========= ===== =====
Movements:
Asset revaluation reserve
Balance at 1st January and 31st March 402.4 400.4 - -
========= ========= ===== =====
Translation reserve
Balance at 1st January (1,521.7) (1,546.7) 357.1 175.5
Effect of adoption of IFRS 9 and - - - -
IFRS 15
--------- --------- ----- -----
Balance at 1st January as restated (1,521.3) (1,546.7) 357.1 175.5
Translation difference (33.7) 70.5 47.1 74.1
--------- --------- ----- -----
Balance at 31st March (1,555.4) (1,476.2) 404.2 249.6
========= ========= ===== =====
Fair value reserve
Balance at 1st January 168.5 13.0 - 4.7
Effect of adoption of IFRS 9 and
IFRS 15 (153.4) (7.4) - (4.7)
------- ------ ------
Balance at 1st January as restated 15.1 5.6 - -
Financial assets at FVOCI
- fair value changes (1.6) 3.2 - -
- deferred tax 0.1 (0.1) - -
- transfer to profit and loss (0.7) - - -
Share of associates' and joint ventures'
fair
value changes of financial assets
at FVOCI, net of tax (0.7) 1.1 - -
------- ------ ------
Balance at 31st March 12.2 9.8 - -
======= ====== ======
Hedging reserve
Balance at 1st January (19.4) (5.1) - -
Cash flow hedges
- fair value changes (0.2) (10.0) - -
- deferred tax - 2.0 - -
- transfer to profit and loss 0.2 2.2 - -
Share of associates' and joint ventures'
fair
value changes of cash flow hedges,
net of tax 8.5 (1.7) - -
Balance at 31st March (10.9) (12.6) - -
======= ====== ======
Other reserve
Balance at 1st January and 31st March 3.3 3.3 - -
======= ====== ======
9 Non-controlling interests
Group
2018 2017
US$m US$m
Balance at 1st January 7,014.1 6,321.8
Effect of adoption of IFRS 9 and IFRS 15 14.3 (1.4)
------- -------
Balance at 1st January as restated 7,028.4 6,320.4
Financial assets at FVOCI
- fair value changes (1.7) 3.5
- deferred tax 0.1 (0.1)
- transfer to profit and loss (0.7) -
Share of associates' and joint ventures'
fair value changes of
Financial assets at FVOCI, net of tax (0.8) 1.0
Cash flow hedges
- fair value changes 0.1 (11.3)
- deferred tax (0.1) 2.3
* transfer to profit and loss 0.1 2.1
Share of associates' and joint ventures'
fair value changes of cash
flow hedges, net of tax 20.8 (1.6)
Defined benefit pension plans
- remeasurements (0.8) 0.6
- deferred tax 0.2 (0.1)
Share of associates' and joint ventures'
remeasurements
of defined benefit pension plans, net of
tax 0.3 (0.4)
Translation difference (101.0) 53.1
Profit for the period 276.4 260.1
Dividends paid (25.3) (7.0)
Capital contribution by non-controlling
interests 17.3 -
Change in shareholding 2.9 -
Acquisition of subsidiary - 6.6
Other - (0.8)
------- -------
Balance at 31st March 7,216.2 6,628.4
======= =======
10 Cash flows from operating activities
Group
Restated
2018 2017
US$m US$m
Profit before tax 532.6 570.8
Adjustments for:
------- --------
Financing income (22.4) (27.9)
Financing charges 47.6 38.4
Share of associates' and joint ventures' results
after tax (126.2) (155.8)
Depreciation of property, plant, equipment 139.5 122.5
Depreciation of bearer plants 6.3 5.8
Amortisation of leasehold land use rights
and intangible assets 26.0 24.7
Impairment of debtors 36.0 36.9
Fair value changes of:
- other investments 83.3 (2.8)
- agricultural produce (0.1) -
(Profit)/loss on disposal of:
- property, plant and equipment (0.7) (0.7)
- leasehold land use rights (0.2) (1.2)
- investments (1.4) -
Loss on disposal/write-down of repossessed
assets 14.2 14.0
Amortisation of borrowing costs for financial
services companies 2.6 4.4
Write-down of stocks 4.2 1.1
Changes in provisions 9.7 8.2
Foreign exchange gain/(loss) (20.6) 8.6
197.8 76.2
Operating profit before working capital changes 730.4 647.0
Changes in working capital:
------- --------
Stocks (1) 64.9 (201.7)
Concession rights (1.6) (24.7)
Financing debtors (4.2) (43.2)
Debtors (2) (350.7) (258.3)
Creditors 67.7 279.1
Pensions 6.8 7.2
(217.1) (241.6)
------- --------
Cash flows from operating activities 513.3 405.4
======= ========
(1) Decrease in stock balance due mainly to shorter inventory
days
(2) Increase in debtors balance due mainly to dividends
receivable from associates and joint ventures and higher sales
activities
11 Interested person transactions
Aggregate value
of all interested Aggregate value
person transactions of all interested
(excluding transactions person transactions
less than S$100,000 conducted under
and transactions shareholders'
conducted under mandate pursuant
shareholders' to Rule 920 (excluding
mandate pursuant transactions
to Rule 920) less than S$100,000)
-------------------------- -----------------------------
Name of interested person US$m US$m
Three months ended 31st March
2018
Jardine Matheson Limited
- management support services - 1.3
PT Hero Supermarket Tbk
- transportation services - 0.1
PT Brahmayasa Bahtera
- sale of land to a joint venture 2.3 -
2.3 1.4
========================= =========================
12 Additional information
Group
Three months ended 31st March 2018 2017 Change
US$m US$m %
Astra International
Automotive 72.0 80.7 -11
Financial services 39.0 42.2 -8
Heavy equipment, mining, construction
& energy 55.8 33.9 65
Agribusiness 10.4 24.0 -57
Infrastructure & logistics (0.8) 2.5 nm
Information technology 1.0 1.0 -
Property - 0.2 -100
------ ------
177.4 184.5 -4
------
Direct Motor Interests
Singapore 12.9 11.9 8
Malaysia (1.8) - nm
Indonesia (Tunas Ridean) 4.9 3.4 44
Myanmar (0.6) (0.2) 200
Vietnam 12.2 7.4 65
27.6 22.5 23
------ ------
Other Strategic Interests
Vinamilk 9.6 - nm
9.6 - nm
------ ------
Corporate costs 4.4 (5.0) nm
Underlying profit attributable to shareholders 219.0 202.0 8
====== ======
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 2018 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 2018 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 Strategic Interests in Southeast
Asia. Together with its subsidiaries and associates, JC&C
employs over 250,000 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, mining, construction and energy, 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 Strategic Interests comprise interests in
market leading businesses in the region through which JC&C
gains exposure to key economies by supporting the long-term growth
of these companies.
JC&C is 75% owned by the Jardine Matheson Group, a
diversified business group focused principally on markets in
Greater China and Southeast Asia.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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