TIDMJDS TIDMJAR
RNS Number : 1839R
Jardine Strategic Hldgs Ltd
27 February 2019
To: Business Editor 27th February 2019
For immediate release
Jardine Cycle & Carriage Limited
2018 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
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
Ben Fry (65) 6426 8103
27th February 2019
JARDINE CYCLE & CARRIAGE LIMITED
2018 FINANCIAL STATEMENTS AND DIVID ANNOUNCEMENT
Highlights
-- Underlying earnings per share up 12%
-- Strong growth at Astra
-- Improved performances in non-Astra interests
"The Group achieved good overall results in 2018, but Astra is
likely to face a number of macro-economic and commercial headwinds
in 2019, while the Group's Direct Motor Interests and Other
Strategic Interests may also see slower growth."
Ben Keswick, Chairman
27th February 2019
Group Results
-------------------------------- ---------------------------- --------- ------------
Year ended 31st December
-------------------------------- ---------------------------------------- ------------
Restated
2018 2017 Change 2018
US$m US$m % S$m
---------------------------------- ------------- ------------ --------- ------------
Revenue 18,992 17,337 10 25,637
Underlying profit attributable
to
shareholders (#) 858 770 12 1,158
Non-trading items^ (438) 169 nm (592)
Profit attributable to
shareholders 420 939 -55 566
---------------------------------- ------------- ------------ --------- ------------
USc USc Sc
---------------------------------- ------------- ------------ --------- ------------
Underlying earnings per
share (#) 217 195 12 293
Earnings per share 106 238 -55 143
Dividend per share 87 86 1 117
At At At
31.12.2018 31.12.2017 31.12.2018
------------- ------------ ---------
US$m US$m S$m
---------------------------------- ------------- ------------ --------- ------------
Shareholders' funds 6,148 6,408 -4 8,397
---------------------------------- ------------- ------------ --------- ------------
US$ US$ S$
---------------------------------- ------------- ------------ --------- ------------
Net asset value per share 15.56 16.22 -4 21.25
---------------------------------- ------------- ------------ --------- ------------
The exchange rate of US$1=S$1.37 (31st December 2017:
US$1=S$1.34) was used for translating assets and liabilities at the
balance sheet date and US$1=S$1.35 (31st December 2017:
US$1=S$1.38) was used for translating the results for the year. The
financial results for the year ended 31st December 2018 have been
prepared in accordance with International Financial Reporting
Standards and have not been audited or reviewed by the
auditors.
The accounts have been restated due to changes in accounting
policies upon adoption of IFRS 9 'Financial Instruments' and IFRS
15 Revenue from Contracts with Customers', as set out in Note 1 to
the condensed financial statements.
# The Group uses 'underlying profit attributable to
shareholders' in its internal financial reporting to distinguish
between ongoing business performance and non-trading items, as more
fully described in Note 5 to the condensed financial statements.
Management considers this to be a key performance measurement which
enhances the understanding of the Group's underlying business
performances.
^ Included in 'non-trading items' are unrealised losses arising
from the revaluation of the Group's equity investments.
nm not meaningful
CHAIRMAN'S STATEMENT
120th Anniversary of Jardine Cycle & Carriage
2019 marks 120 years of Southeast Asian partnerships for Jardine
Cycle & Carriage. We have grown alongside the development of
Southeast Asia with strategic, long-term interests that support the
region's urbanisation and emerging middle-class. Southeast Asia is
projected to be the fourth largest economy in the world by 2030 and
the Group remains committed to investing in the continued growth of
the region.
Overview
The Group achieved good overall results in 2018, with strong
growth in Astra and improved performance versus the prior year in
its Direct Motor Interests and Other Strategic Interests.
Performance
The Group's revenue for the year increased by 10% to US$19
billion, due largely to revenue growth in most of Astra's
businesses. The Group's underlying profit attributable to
shareholders was 12% higher at US$858 million and underlying profit
per share was also 12% higher at USc217. Profit attributable to
shareholders fell by 55% from US$939 million to US$420 million,
after accounting for net non-trading losses of US$438 million,
principally unrealised fair value losses related to non-current
investments.
Astra contributed US$719 million to the Group's underlying
profit, an increase of 15%. The underlying profit from its Direct
Motor Interests was 19% higher at US$145 million, while its Other
Strategic Interests contributed an underlying profit of US$71
million, up from US$34 million in the previous year.
The Group's financial position remains strong, with
shareholders' funds at US$6,148 million and net asset value per
share at US$15.56 at the year end, albeit down by 4% from the end
of 2017, due to translation losses resulting from the weaker
Rupiah. The Group continues to invest, with capital expenditure and
investments amounting to US$3.1 billion in 2018. Consolidated net
debt, excluding financial services companies, was US$2.2 billion at
31st December 2018, representing gearing of 16%.
The Board is recommending a final one-tier tax dividend of USc69
per share (2017: USc68 per share) which, together with the interim
dividend, will produce a total dividend for the year of USc87 per
share (2017: USc86 per share).
Strategic Developments
The Group continues to pursue expansion in Southeast Asia by
supporting the growth of Astra in Indonesia, strengthening its
Direct Motor Interests, and growing its Other Strategic Interests
by investing in market-leading companies which provide exposure to
new business sectors in the region.
Astra
Astra continues to seek opportunities in Indonesia to expand its
existing activities and move into new sectors.
In 2018, Astra expanded its operations with further investments
in toll roads, mining and property, as well as an interest in
GOJEK, Indonesia's leading multi-platform technology group.
Astra and WeLab, a leading technology enabler for consumer
lending in mainland China and Hong Kong, announced the
establishment of Astra WeLab Digital Arta to offer mobile lending
products to retail consumers and provide financial technology
solutions to enterprise customers. Astra Land Indonesia, a
50%-owned joint venture, purchased a 3-hectare site in Jakarta's
Central Business District for residential and commercial
development. Astra, through its 59.5%-owned subsidiary, United
Tractors, acquired a 95% interest in Agincourt Resources, which
operates the Martabe gold mine in Sumatra.
Direct Motor Interests
The Group's Direct Motor Interests are focused on building
customer-centric, innovative organisations across Singapore,
Malaysia, Myanmar and Indonesia to strengthen their competitive
positions.
Cycle & Carriage Singapore was appointed the exclusive
distributor of electric forklifts manufactured by Chinese electric
transport and technology company, BYD. A new wholly-owned
subsidiary, Cycle & Carriage Leasing, was incorporated in
January 2019 to provide vehicle leasing services.
In November 2018, Daimler AG exercised its call option to buy
Cycle & Carriage Bintang's ("CCB") 49% interest in
Mercedes-Benz Malaysia for US$16 million, with the disposal to take
place at the end of November 2019 after a 12-month notice period.
CCB will continue to focus on its dealership operations.
In Vietnam, Truong Hai Auto Corporation continued to invest in
its core automotive business, and, in August 2018, it further
diversified into the agriculture business.
Other Strategic Interests
The diversified businesses of the Group include Other Strategic
Interests in Siam City Cement, Refrigeration Electrical Engineering
Corporation and Vinamilk. The Group gains exposure to key Southeast
Asian economies by supporting the long-term growth of these
market-leading companies.
People
Our success is attributable to our employees, business partners
and shareholders. On behalf of the Board, I would like to thank our
more than 250,000 employees across the region for their hard work
and dedication and our business partners and shareholders for their
ongoing support.
Mr Chang See Hiang will be retiring as director of the Company
at the close of the upcoming Annual General Meeting in April 2019,
after more than 21 years on the Board. He has also served as
Chairman of the Nominating Committee and as a member of both the
Audit Committee and the Remuneration Committee for a number of
years. On behalf of the Board, I would like to record our
appreciation and thank Mr Chang for his valuable contribution to
the Group.
I am delighted to welcome Mr Steven Phan who will join the Board
in April 2019 as an independent director. Mr Phan is a chartered
accountant with extensive knowledge and experience in auditing,
advisory and consulting work.
Mr Adrian Teng is stepping down as Group Finance Director on
31st March 2019 to pursue other interests and opportunities outside
the Company. On behalf of the Board, I would like to thank him for
his valuable contribution to the Group. Mr Stephen Gore, who is
currently the Chief Financial Officer of Jardine Pacific and
Jardine Motors, will succeed Mr Teng on 1st April 2019 as Group
Finance Director.
Outlook
The Group achieved good overall results in 2018, but Astra is
likely to face a number of macro-economic and commercial headwinds
in 2019, while the Group's Direct Motor Interests and Other
Strategic Interests may also see slower growth.
Ben Keswick
Chairman
27th February 2019
GROUP MANAGING DIRECTOR'S REVIEW
OVERVIEW
The Group's underlying profit rose 12% in 2018, due mainly to
increased contributions from Astra's heavy equipment, mining,
construction and energy, and financial services businesses, which
more than offset lower contributions from its agribusiness and
automotive businesses. The Group's Direct Motor Interests and Other
Strategic Interests also saw higher contributions than the previous
year.
PERFORMANCE
The Group reported an underlying profit attributable to
shareholders of US$858 million, 12% up on the previous year, while
underlying profit per share also grew by 12% to USc217. Profit
attributable to shareholders was down 55% from US$939 million to
US$420 million, after accounting for net non-trading losses of
US$438 million, principally unrealised fair value losses related to
non-current investments. These result from the adoption of a new
accounting standard which requires the unrealised gains and losses
arising from the revaluation of equity investments at the end of
each financial period to be included in the profit and loss
account.
The Group's consolidated net debt, excluding Astra's financial
services subsidiaries, was US$2.2 billion at the end of 2018,
representing gearing of 16%, compared to US$819m at the end of
2017, when gearing was 6%. This increase was largely due to
investments by Astra in its toll road businesses, a gold mining
concession and GOJEK, together with the Group's investment in
Toyota Motor Corporation and further purchases in Vinamilk and in
its associates and joint ventures. Net debt within Astra's
financial services subsidiaries was US$3.3 billion compared with
US$3.4 billion at the end of 2017. JC&C parent's net debt was
US$1.3 billion at the end of 2018, an increase from US$1.2 billion
at the end of 2017.
GROUP REVIEW
ASTRA
Astra reported a net profit equivalent to US$1.5 billion, under
Indonesian accounting standards, 15% higher in its local currency
terms.
Automotive
Net income from Astra's automotive division was 4% lower at
US$597 million, mainly due to lower operating margins despite
higher automotive sales.
The wholesale market for cars was 7% higher in the year compared
to 2017 at 1.2 million units. Astra's car sales were 1% higher at
582,000 units, but increased competition resulted in a decline in
market share from 54% to 51%. The group launched 18 new models and
seven revamped models during the year.
The wholesale market for motorcycles increased by 8% to 6.4
million units. Astra Honda Motor's domestic sales increased by 9%
to 4.8 million units, with its market share stable at 75%. The
group launched six new models and 19 revamped models during the
year.
Astra Otoparts, the group's automotive components business,
reported net income 11% higher at US$43 million, with increased
revenues from its original equipment manufacturing and replacement
market segments.
Financial Services
Net income from the group's financial services division
increased by 28% to US$337 million. This resulted from improved
contributions from its consumer finance, banking and general
insurance businesses.
The net income contribution from the group's car-focused finance
companies increased by 26% to US$86 million, mainly due to lower
loan loss provisions and an increased shareholding in Astra Sedaya
Finance. The net income contribution from motorcycle-focused
Federal International Finance was 16% higher at US$162 million,
reflecting a larger loan portfolio. The group's consumer finance
businesses overall saw a 1% decrease in the amount financed to
US$5.6 billion during the year, due to a reduction in the amount
financed in the low-cost car segment.
The net income contribution from the group's heavy
equipment-focused finance operations increased by 30% to US$6
million, partly due to lower loss provisions. The amount financed
decreased by 12% to US$363 million, mainly due to reduced lending
to the small and medium-sized segment.
Permata Bank, in which Astra holds a 44.6% interest, reported
net income of US$63 million, compared to US$56 million in 2017,
mainly due to increased net interest income and recoveries from
non-performing loans. The bank's gross non-performing loan ratio
was 4.4% at the end of 2018 compared to 4.6% at the end of 2017,
while its net non-performing loan ratio was stable at 1.7%.
Asuransi Astra Buana, the group's general insurance company,
reported net income 4% higher at US$73 million, primarily due to
higher investment income. During the year, the group's life
insurance joint venture, Astra Aviva Life, acquired more than
339,000 new individual life customers and more than 713,000 new
participants for its corporate employee benefits programmes.
Heavy Equipment, Mining, Construction and Energy
Net income from Astra's heavy equipment, mining, construction
and energy division increased by 48% to US$465 million.
United Tractors, which is 59.5%-owned, reported net income of
US$775 million, 50% higher than the previous year, mainly due to
improved performances in its construction machinery, mining
contracting and mining operations, all of which benefited from
higher coal prices compared with 2017.
Within United Tractors' construction machinery business, Komatsu
heavy equipment sales rose 29% to 4,878 units, while parts and
service revenues were also higher. The mining contracting
operations of wholly-owned Pamapersada Nusantara recorded a 22%
increase in overburden removal volume at 979 million bank cubic
metres and 11% higher coal production at 125 million tonnes. United
Tractors' coal mining subsidiaries reported an 11% increase in coal
sales to 7 million tonnes, including sales of 807,000 tonnes of
coking coal by 80.1%-owned Suprabari Mapanindo Mineral, which
became operational in late 2017. Agincourt Resources, in which
United Tractors acquired a 95% interest in December 2018 and which
operates a gold mining concession in Sumatra, reported gold sales
of 35,000 oz in December 2018.
Acset Indonusa, United Tractor's 50.1%-owned general contractor
reported a 88% decrease in net income to US$1 million, mainly due
to increased financing costs. US$112 million of new construction
projects were secured during 2018.
25%-owned Bhumi Jati Power is in the process of constructing two
1,000MW power plants in Central Java, which are scheduled to start
commercial operation in 2021.
Agribusiness
Net income from Astra's agribusiness division was down 27% at
US$80 million.
Astra Agro Lestari, which is 79.7%-owned, reported a 27% decline
in net income to US$101 million, primarily due to a fall in crude
palm oil prices, which were 12% lower at Rp7,275/kg compared with
the average in 2017. This more than offset a 30% increase in crude
palm oil and derivatives sales to 2.3 million tonnes.
Infrastructure and Logistics
The group's infrastructure and logistics division reported a net
income of US$14 million in 2018, compared to a net loss of US$17
million in the prior year. This was mainly due to improved earnings
from the Tangerang-Merak toll road and Serasi Autoraya, as well as
the inclusion in the prior year's results of a one-off loss on the
disposal of Astra's 49% interest in PAM Lyonnaise Jaya. Astra has
interests in 302km of operational toll roads along the Trans-Java
network, with a further 11km in Greater Jakarta under
construction.
Serasi Autoraya's net income increased by 50% to US$21 million,
primarily due to improved operating margins in its car leasing and
rental businesses. Its vehicles under contract decreased by 2% to
23,000 units.
Information Technology
Net income from the group's information technology division was
5% higher at US$15 million.
Astra Graphia, which is 76.9%-owned, reported net income of
US$19 million, 5% higher than the previous year as a result of
increased revenue from its document and IT solution businesses.
Property
The group's property division reported a 28% lower net profit at
US$11 million, due mainly to reduced development earnings
recognised from its Anandamaya Residences project as a result of
lower percentage completion during the period in its final stages
of construction. The group's other property development projects
comprise its interests in Arumaya in South Jakarta and Asya in East
Jakarta, both residential projects, and a 3-hectare residential and
commercial development in Jakarta's Central Business District.
DIRECT MOTOR INTERESTS
The Group's Direct Motor Interests contributed a profit of
US$145 million, 19% higher than the prior year.
Singapore
The Singapore passenger car market fell by 13% to 80,300 units,
following a decrease in the number of certificates of entitlement
issued. The Group's wholly-owned business, Cycle & Carriage
Singapore, saw its earnings grow by 8% to US$62 million due to
improved margins, despite a 7% decrease in passenger car sales to
13,300 units. The Group's passenger car market share improved from
16% to 17%.
Malaysia
In Malaysia, 59.1%-owned Cycle & Carriage Bintang
contributed a profit of US$2 million, mainly comprising dividend
income from its investment in Mercedes-Benz Malaysia. At the
trading level, a small profit was recorded, compared to a loss in
the previous year, as the company benefited from operational
improvements and the zero rate of Goods & Services Tax from
June to August.
Myanmar
Cycle & Carriage Myanmar in which the Group owns a 60%
interest, contributed a loss of US$5 million, compared to the loss
of US$3 million in the prior year, due mainly to higher
depreciation charges on new facilities in Yangon and higher stock
provisions, partly offset by higher unit sales.
Indonesia
In Indonesia, 46.2%-owned Tunas Ridean's profit contribution of
US$18 million was 17% higher than the prior year, reflecting
improved performances across all its segments: automotive, rental
operations and consumer finance. Motor car sales of 48,300 units
were 6% down due to intense competition, while motorcycle sales,
which mainly occur in Sumatra, rose by 11% to 248,900 units,
benefiting from higher agricultural prices.
Vietnam
In Vietnam, 25.3%-owned Truong Hai Auto Corporation ("Thaco")
performed well, with a 29% increase in its profit contribution to
US$73 million, due mainly to higher unit sales and improved
margins. The vehicle market grew by 9% to 362,000 units as tariffs
on CBUs were eliminated, following the full implementation of the
ASEAN Trade in Goods Agreement in 2018. Thaco's overall vehicle
sales rose 11% to 97,100 units with market share stable at 27%.
OTHER STRATEGIC INTERESTS
The Group's Other Strategic Interests contributed a profit of
US$71 million, more than double the previous year, benefiting in
particular from Vinamilk dividends and improved results from Siam
City Cement Public Company ("SCCC") and Refrigeration Electrical
Engineering Corporation ("REE").
SCCC, which is 25.5%-owned, contributed a profit of US$20
million, compared to US$11 million in the previous year, due to
improved domestic performance and lower one-off expenses, partially
offset by lower contributions from its regional operations. The
Group's 24.9%-owned REE, contributed US$19 million, 39% up on the
previous year due mainly to strong contributions from its power and
water investments. The Group's 10.6% interest in Vinamilk, which
was acquired in the last quarter of 2017, produced dividend income
of US$32 million, compared to US$9 million in 2017.
Alex Newbigging
Group Managing Director
27th February 2019
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the year ended 31st
December 2018
--------------------------------------------------------------
Restated
2018 2017 Change
Note US$m US$m %
Revenue 3 18,991.8 17,336.7 10
Net operating costs 2 (17,271.9) (15,442.7) 12
Operating profit 2 1,719.9 1,894.0 (9)
Financing income 92.1 111.6 (17)
Financing charges (253.1) (158.3) 60
----------- -----------
Net financing charges (161.0) (46.7) 245
Share of associates'
and joint
ventures' results after
tax 615.9 549.2 12
Profit before tax 2,174.8 2,396.5 (9)
Tax (595.2) (487.4) 22
Profit after tax 3 1,579.6 1,909.1 (17)
=========== ===========
Profit attributable to:
Shareholders of the Company 419.6 938.8 (55)
Non-controlling interests 1,160.0 970.3 20
1,579.6 1,909.1 (17)
=========== ===========
USc USc
----------------------------- ----- ----------- ----------- -------
Earnings per share 5 106 238 (55)
----------------------------- ----- ----------- ----------- -------
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the year
ended 31st December 2018
-------------------------------------------------------------
Restated
2018 2017
US$m US$m
Profit for the year 1,579.6 1,909.1
Items that will not be reclassified
to profit or loss:
-------- ---------
Asset revaluation
- surplus during the year 3.3 5.6
Remeasurements of defined benefit
pension plans 14.1 (20.8)
Tax on items that will not be reclassified (3.5) 5.0
Share of other comprehensive income/(expense)
of
associates and joint ventures, net
of tax 3.9 (13.8)
---------
17.8 (24.0)
Items that may be reclassified subsequently
to profit or loss:
Translation difference
- Loss arising during the year (756.4) (27.6)
Financial assets at FVOCI(1)
- gain/(loss) arising during the
year (22.5) 21.3
- transfer to profit and loss (2.9) (4.7)
Cash flow hedges
- gain/(loss) arising during the
year 52.5 (26.7)
- transfer to profit and loss 0.4 13.0
Tax relating to items that may be
reclassified (12.1) 2.9
Share of other comprehensive income/(expense)
of
associates and joint ventures, net
of tax 13.7 (25.3)
(727.3) (47.1)
Other comprehensive income/(expense)
for the year (709.5) (71.1)
Total comprehensive income for the
year 870.1 1,838.0
======== =========
Attributable to:
Shareholders of the Company 106.7 949.3
Non-controlling interests 763.4 888.7
870.1 1,838.0
======== =========
(1) Fair value through other comprehensive income ("FVOCI")
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 31st December 2018
--------------------------------------------------
Restated Restated
At At At
Note 31.12.2018 31.12.2017 1.1.2017
US$m US$m US$m
Non-current assets
Intangible assets 1,630.6 1,079.5 972.3
Leasehold land use rights 597.7 625.0 620.4
Property, plant and equipment 4,487.3 3,410.2 2,978.5
Investment properties 587.2 618.6 460.2
Bearer plants 486.8 498.0 496.8
Interests in associates and
joint ventures 4,251.3 4,274.3 3,738.5
Non-current investments 1,911.2 1,973.3 487.8
Non-current debtors 2,870.7 2,827.1 2,691.6
Deferred tax assets 300.3 322.2 291.7
17,123.1 15,628.2 12,737.8
----------- ----------- ----------
Current assets
Current investments 50.4 22.7 65.2
Properties for sale 355.8 254.0 -
Stocks 2,039.7 1,723.8 1,578.6
Current debtors 5,628.0 5,072.9 4,604.1
Current tax assets 134.9 120.5 136.9
Bank balances and other liquid
funds
----------- ----------- ----------
- non-financial services companies 1,711.4 2,398.7 2,237.2
- financial services companies 187.5 241.1 228.5
----------- ----------- ----------
1,898.9 2,639.8 2,465.7
----------- ----------- ----------
10,107.7 9,833.7 8,850.5
----------- ----------- ----------
Total assets 27,230.8 25,461.9 21,588.3
----------- ----------- ----------
Non-current liabilities
Non-current creditors 271.4 241.6 156.7
Provisions 146.7 113.7 97.6
Long-term borrowings 7
----------- ----------- ----------
- non-financial services companies 1,148.3 845.8 349.9
- financial services companies 1,655.5 1,486.7 1,517.5
----------- ----------- ----------
2,803.8 2,332.5 1,867.4
Deferred tax liabilities 428.0 212.9 188.0
Pension liabilities 253.0 262.2 215.9
3,902.9 3,162.9 2,525.6
----------- ----------- ----------
Current liabilities
Current creditors 4,951.5 4,152.7 3,363.6
Provisions 92.8 87.2 85.7
Current borrowings 7
----------- ----------- ----------
- non-financial services companies 2,752.2 2,371.7 1,178.6
- financial services companies 1,824.7 2,154.1 2,264.6
----------- ----------- ----------
4,576.9 4,525.8 3,443.2
Current tax liabilities 213.8 135.4 95.7
9,835.0 8,901.1 6,988.2
Total liabilities 13,737.9 12,064.0 9,513.8
----------- ----------- ----------
Net assets 13,492.9 13,397.9 12,074.5
=========== =========== ==========
Equity
Share capital 8 1,381.0 1,381.0 1,381.0
Revenue reserve 9 6,206.2 6,147.3 5,515.6
Other reserves 10 (1,439.7) (1,120.1) (1,142.5)
Shareholders' funds 6,147.5 6,408.2 5,754.1
Non-controlling interests 11 7,345.4 6,989.7 6,320.4
Total equity 13,492.9 13,397.9 12,074.5
=========== =========== ==========
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the year ended
31st December 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 - 0.2 (153.4) 7.7 14.3 22.0
----------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance at 1st
January as
restated 1,381.0 6,173.7 402.4 (1,521.5) (1.0) 6,434.6 7,028.4 13,463.0
Total
comprehensive
income - 426.2 0.9 (331.1) 10.7 106.7 763.4 870.1
Dividends paid by
the Company - (339.4) - - - (339.4) - (339.4)
Dividends paid to
non-controlling
interests - - - - - - (450.6) (450.6)
Issue of shares
to non-
controlling
interests - - - - - - 62.0 62.0
Change in
shareholding - (62.1) - - - (62.1) (129.8) (191.9)
Acquisition of
subsidiaries - - - - - - 59.6 59.6
Others - 7.8 - - (0.1) 7.7 12.4 20.1
----------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance at 31st
December 1,381.0 6,206.2 403.3 (1,852.6) 9.6 6,147.5 7,345.4 13,492.9
=========== ======== ============ ============ ========= ======== ============= =========
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 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 - 926.9 2.0 25.2 (4.8) 949.3 888.7 1,838.0
Dividends paid by
the Company - (294.2) - - - (294.2) - (294.2)
Dividends paid to
non-controlling
interests - - - - - - (397.7) (397.7)
Issue of shares
to non-
controlling
interests - - - - - - 67.8 67.8
Change in
shareholding - (1.0) - - - (1.0) (2.6) (3.6)
Acquisition of
subsidiaries - - - - - - 105.4 105.4
Others - - - - - - 7.7 7.7
----------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance at 31st
December 1,381.0 6,147.3 402.4 (1,521.5) (1.0) 6,408.2 6,989.7 13,397.9
=========== ======== ============ ============ ========= ======== ============= =========
Jardine Cycle & Carriage Limited
Company Balance Sheet at 31st December 2018
---------------------------------------------
Restated Restated
at
Note 2018 2017 1.1.2017
US$m US$m US$m
Non-current assets
Property, plant and equipment 34.4 34.6 32.0
Interests in subsidiaries 1,358.3 1,325.6 1,226.6
Interests in associates
and joint ventures 987.0 983.9 776.7
Non-current investment 167.6 - 11.0
2,547.3 2,344.1 2,046.3
-------- --------- ---------
Current assets
Current debtors 1,229.9 1,403.6 42.8
Bank balances and other
liquid funds 52.8 96.5 154.1
-------- --------- ---------
1,282.7 1,500.1 196.9
-------- --------- ---------
Total assets 3,830.0 3,844.2 2,243.2
-------- --------- ---------
Non-current liabilities
Deferred tax liabilities 6.1 6.2 5.6
6.1 6.2 5.6
-------- --------- ---------
Current liabilities
Current creditors 83.8 80.8 20.5
Current borrowings 1,379.5 1,262.8 -
Current tax liabilities 1.7 1.7 1.7
-------- --------- ---------
1,465.0 1,345.3 22.2
-------- --------- ---------
Total liabilities 1,471.1 1,351.5 27.8
-------- --------- ---------
Net assets 2,358.9 2,492.7 2,215.4
======== ========= =========
Equity
Share capital 8 1,381.0 1,381.0 1,381.0
Revenue reserve 9 672.6 754.6 658.9
Other reserves 10 305.3 357.1 175.5
Total equity 2,358.9 2,492.7 2,215.4
======== ========= =========
Net asset value per share US$5.97 US$6.31 US$5.61
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the year ended
31st December 2018
--------------------------------------------------------------
Restated
2018 2017
US$m US$m
Profit for the year 257.4 389.9
Items that may be reclassified subsequently
to profit or loss:
------- -----------
Translation difference
- (loss)/gain arising during the year (51.8) 181.6
Other comprehensive (expense)/income
for the year (51.8) 181.6
Total comprehensive income for the
year 205.6 571.5
======= ===========
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the year ended 31st
December 2018
----------------------------------------------------------------
Fair
Share Revenue Translation value Total
capital reserve reserve and other equity
reserves
US$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 - 257.4 (51.8) - 205.6
Dividends paid - (339.4) - - (339.4)
Balance at 31st December 1,381.0 672.6 305.3 - 2,358.9
========== ========== ============== =========== =========
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 at 1st January
as restated 1,381.0 658.9 175.5 - 2,215.4
Total comprehensive
income - 389.9 181.6 - 571.5
Dividends paid - (294.2) - - (294.2)
Balance at 31st December 1,381.0 754.6 357.1 - 2,492.7
========== ========== ============== =========== =========
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the year ended 31st
December 2018
--------------------------------------------------------------
Restated
2018 2017
Note US$m US$m
Cash flows from operating activities
Cash generated from operations 12 2,721.1 2,152.0
Interest paid (171.6) (78.5)
Interest received 91.9 112.4
Other finance costs paid (72.8) (73.0)
Income tax paid (574.0) (458.0)
---------
(726.5) (497.1)
Net cash flows from operating activities 1,994.6 1,654.9
Cash flows from investing activities
--------- ---------
Sale of leasehold land use rights 11.7 1.9
Sale of property, plant and equipment 16.8 15.8
Sale of investment properties 0.2 42.1
Sale of subsidiaries, net of cash
disposed 0.8 86.1
Sale of associate and joint venture - 35.3
Sale of investments 234.9 273.1
Purchase of intangible assets (72.2) (66.0)
Purchase of leasehold land use rights (7.8) (36.7)
Purchase of property, plant and equipment (937.2) (744.5)
Purchase of investment properties (27.4) (161.8)
Additions to bearer plants (44.7) (50.4)
Purchase of subsidiaries, net of
cash acquired (1,190.3) (14.1)
Purchase of shares in associates
and joint ventures (133.5) (669.1)
Purchase of investments (691.9) (1,608.6)
Dividends received from associates
and joint ventures (net) 556.9 587.5
Net cash flows used in investing
activities (2,283.7) (2,309.4)
Cash flows from financing activities
--------- ---------
Drawdown of loans 3,358.3 4,283.6
Repayment of loans (2,787.1) (2,832.6)
Changes in controlling interests
in subsidiaries (191.9) (3.6)
Investments by non-controlling interests 62.0 67.8
Dividends paid to non-controlling
interests (450.6) (397.7)
Dividends paid by the Company (339.4) (294.2)
---------
Net cash flows from/(used in) financing
activities (348.7) 823.3
Net change in cash and cash equivalents (637.8) 168.8
Cash and cash equivalents at the
beginning of the year 2,639.8 2,465.7
Effect of exchange rate changes (120.5) 5.3
Cash and cash equivalents at the
end of the year 1,881.5 2,639.8
========= =========
Jardine Cycle & Carriage Limited
Notes to the financial statements for the year ended 31st December
2018
--------------------------------------------------------------------
1 Basis of preparation
The financial statements have been prepared in accordance with
the Singapore Financial Reporting Standards (International)
("SFRS(I)") and International Financial Reporting Standards
("IFRS").
Adoption of SFRS(I)
As required by the listing requirements of Singapore Exchange,
the Group has adopted SFRS(I) on 1st January 2018. These financial
statements for the year ended 31st December 2018 are the first set
of financial statements the Group prepared in accordance with
SFRS(I). The Group's previously issued financial statements for
periods up to and including the financial year ended 31st December
2017 were prepared in accordance with IFRS, including International
Accounting Standards and Interpretations adopted by the
International Accounting Standard Board.
For the purpose of SFRS(I), financial statements that have been
prepared in accordance and complied with IFRS are deemed to have
also complied with SFRS(I).
SFRS(I) comprise standards and interpretations that are
equivalent to IFRS. All references to SFRS(I) and IFRS are referred
to collectively as "IFRS" in these financial statements, unless
specified otherwise.
The following new standards, which are effective from 1st
January 2018, were adopted
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, is recognised in profit and loss,
instead of through other comprehensive income. Such fair value
gains or losses on revaluation of these investments are classified
as non-trading items, and hence do not have any impact on the
Group's underlying profit attributable to shareholders. The
forward-looking expected credit loss model affects mainly the loan
impairment provisions of the Group's financial services companies
in Indonesia. The new hedge accounting rules 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 year ended 31 December 2017 by
US$129.4 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 resulted in a decrease in the profit attributable to
shareholders for the financial year ended 31 December 2017 by
US$1.8 million and a decrease in shareholders' funds as at 31st
December 2017 by US$2.3 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$1.3659 (2017: US$1=S$1.337),
US$1=RM4.1480 (2017: US$1= RM4.0650), US$1=IDR14,481 (2017: US$1=
IDR13,548), US$1=VND23,175 (2017: US$1= VND22,704) and
US$1=THB32.518 (2017: US$1= THB32.689).
The exchange rates used for translating the results for the year
are US$1=S$1.3499 (2017: US$1 =S$1.3757), US$1=RM4.0386 (2017:
US$1= RM4.2820), US$1=IDR14,267 (2017: US$1= IDR13,400),
US$1=VND23,044 (2017: US$1= VND22,719) and US$1=THB32.3314 (2017:
US$1= THB33.8198).
2 Net operating costs and operating profit
Group
Restated
2018 2017 Change
US$m US$m %
Cost of sales (15,086.9) (13,926.4) 8
Other operating income 330.1 455.2 -27
Selling and distribution expenses (881.8) (911.8) -3
Administrative expenses (1,063.8) (972.6) 9
Other operating expenses (569.5) (87.1) nm
----------- -----------
Net operating costs (17,271.9) (15,442.7) 12
=========== ===========
Operating profit is determined after
including:
Depreciation of property, plant and equipment (583.1) (508.8) 15
Depreciation of bearer plants (25.0) (24.4) 2
Amortisation of leasehold land use rights
and intangible assets (106.5) (100.6) 6
Fair value changes of
* investment properties 13.6 23.3 -42
* agricultural produce (10.2) (4.4) 132
* investments(1) (443.5) 150.2 nm
Profit/(loss) on disposal of:
* leasehold land use rights 9.5 1.5 nm
* property, plant and equipment 6.4 2.8 129
- bearer plants (0.2) (0.1) 100
- investment properties - (10.3) -100
- subsidiaries - 2.8 -100
- associates and joint venture - (4.5) -100
* investments 3.3 3.9 -15
Loss on disposal/write-down of repossessed
assets (53.7) (58.2) -8
Dividend and interest income from investments 89.1 58.7 52
Write-down of stocks, net (14.6) (7.6) 92
Impairment of intangible assets (13.1) (11.0) 19
Writeback/(impairment) of property, plant
and equipment 3.9 (5.7) nm
Impairment of debtors (208.5) (196.2) 6
Net exchange gain/(loss) (2) (34.5) 11.3 nm
======== ========
nm - not meaningful
(1) Fair value loss in 2018 relates mainly to the fair value of
Vinamilk and other equity investments
(2) Net exchange loss in 2018 mainly relates to the impact of
weaker Singapore dollars on monetary liabilities denominated in US
dollars
3 Revenue and Profit after tax
Group
Restated
2018 2017 Change
US$m US$m %
Revenue:
* 1st half 9,188.8 8,353.1 10
* 2nd half 9,803.0 8,983.6 9
--------- ---------
18,991.8 17,336.7 10
========= =========
Profit after tax:
* 1st half 741.9 886.4 -16
* 2nd half 837.7 1,022.7 -18
--------- ---------
1,579.6 1,909.1 -17
========= =========
4 Dividends
Group and Company
2018 2017
US$m US$m
Dividend paid:
Final one-tier tax exempt dividend in respect
of previous year of 267.4 223.9
USc68 per share (2017: in respect of 2016
of USc56)
Interim one-tier tax exempt dividend in respect
of current year of 72.0 70.3
USc18 per share (2017: USc18)
--------- ---------
339.4 294.2
========= =========
The Board is recommending a final dividend of USc69 per share
which, together with the interim dividend of USc18 per share, will
give a total dividend for the year of USc87 per share.
5 Earnings per share
Group
Restated
2018 2017
US$m US$m
Basic earnings per share
Profit attributable to shareholders 419.6 938.8
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic earnings per share USc106 USc238
======= =========
Diluted earnings per share USc106 USc238
======= =========
Underlying earnings per share
Underlying profit attributable to shareholders 858.0 769.5
Basic underlying earnings per share USc217 USc195
======= =========
Diluted underlying earnings per share USc217 USc195
======= =========
As at 31st December 2017 and 2018, there were no dilutive
potential ordinary shares in issue.
A reconciliation of the profit attributable to shareholders and
underlying profit attributable to shareholders is as follows:
Group
Restated
2018 2017
US$m US$m
Profit attributable to shareholders 419.6 938.8
Less: Non-trading items (net of tax and non-controlling
interests)
-------- ---------
Fair value changes of agricultural produce (3.0) (1.3)
Fair value changes of investment properties 6.5 22.3
Fair value changes of investment (441.9) 150.9
Net gain on disposal or dilution of interests
in subsidiary,
associates and joint ventures - 5.8
Impairment loss on intangible assets - (4.3)
Impairment loss on associate/joint venture - (4.1)
(438.4) 169.3
-------- ---------
Underlying profit attributable to shareholders 858.0 769.5
======== =========
Non-trading items are separately identified to provide greater
understanding of the Group's underlying business performance. Items
classified as non-trading items include fair value gains or losses
on revaluation of investment properties, agricultural produce and
equity investments which are measured at fair value through profit
and loss; gains and losses arising from the sale of businesses,
investments and properties; impairment of non-depreciable
intangible assets and other investments; provisions for closure of
businesses; acquisition-related costs in business combinations; and
other credits and charges of a non-recurring nature that require
inclusion in order to provide additional insight into the Group's
underlying business performance.
6 Segment information
Operating segments are identified on the basis of internal
reports about components of the Group that are regularly reviewed
by the Board for the purpose of resource allocation and performance
assessment. Set out below is an analysis of the segment
information:
Direct Other
Motor Strategic Corporate
Astra Interests Interests Costs Group
US$m US$m US$m US$m US$m
2018
Revenue 17,054.2 1,937.6 - - 18,991.8
Net operating costs (14,963.9) (1,853.4) 31.9 (486.5) (17,271.9)
------------ ---------------- ---------------- ---------------- ------------
Operating profit/(loss) 2,090.3 84.2 31.9 (486.5) 1,719.9
Financing income 90.8 0.6 - 0.7 92.1
Financing charges (217.6) (2.5) - (33.0) (253.1)
------------ ---------------- ---------------- ---------------- ------------
Net financing charges (126.8) (1.9) - (32.3) (161.0)
Share of associates' and
joint ventures'
results after tax 488.2 86.1 41.6 - 615.9
------------
Profit before tax 2,451.7 168.4 73.5 (518.8) 2,174.8
Tax (575.2) (16.4) (2.4) (1.2) (595.2)
------------ ---------------- ---------------- ---------------- ------------
Profit after tax 1,876.5 152.0 71.1 (520.0) 1,579.6
Non-controlling interests (1,152.6) (7.4) - - (1,160.0)
---------------- ---------------- ---------------- ------------
Profit attributable to
shareholders 723.9 144.6 71.1 (520.0) 419.6
Non-trading items (5.2) - - 443.6 438.4
------------ ---------------- ---------------- ---------------- ------------
Underlying profit
attributable
to shareholders 718.7 144.6 71.1 (76.4) 858.0
------------ ---------------- ---------------- ---------------- ------------
Net cash/(debt) (excluding
net debt
of financial services
companies) (900.5) (20.9) - (1,267.7) (2,189.1)
Total equity 12,229.8 640.5 826.6 (204.0) 13,492.9
------------ ---------------- ---------------- ---------------- ------------
Direct Other
Motor Strategic Corporate
Restated Astra Interests Interests Costs Group
US$m US$m US$m US$m US$m
2017
Revenue 15,364.4 1,972.3 - - 17,336.7
Net operating costs (13,698.7) (1,900.2) 9.3 146.9 (15,442.7)
------------ ---------------- ---------------- ---------------- ------------
Operating profit/(loss) 1,665.7 72.1 9.3 146.9 1,894.0
Financing income 109.9 1.1 - 0.6 111.6
Financing charges (152.4) (1.6) - (4.3) (158.3)
------------ ---------------- ---------------- ---------------- ------------
Net financing charges (42.5) (0.5) - (3.7) (46.7)
Share of associates' and
joint ventures'
results after tax 445.4 77.8 26.0 - 549.2
------------
Profit before tax 2,068.6 149.4 35.3 143.2 2,396.5
Tax (472.1) (14.0) (1.0) (0.3) (487.4)
------------ ---------------- ---------------- ---------------- ------------
Profit after tax 1,596.5 135.4 34.3 142.9 1,909.1
Non-controlling interests (964.6) (5.7) - - (970.3)
---------------- ---------------- ---------------- ------------
Profit attributable to
shareholders 631.9 129.7 34.3 142.9 938.8
Non-trading items (9.6) (8.4) - (151.3) (169.3)
------------ ---------------- ---------------- ---------------- ------------
Underlying profit
attributable
to shareholders 622.3 121.3 34.3 (8.4) 769.5
------------ ---------------- ---------------- ---------------- ------------
Net cash (excluding net
debt of financial
services companies) 195.9 (30.0) - (984.7) (818.8)
Total equity 11,708.9 576.6 818.1 294.3 13,397.9
------------ ---------------- ---------------- ---------------- ------------
7 Borrowings
Group
2018 2017
US$m US$m
Long-term borrowings:
- secured 1,232.7 1,509.7
- unsecured 1,571.1 822.8
-------- --------
2,803.8 2,332.5
======== ========
Current borrowings:
- secured 1,432.6 1,640.9
- unsecured 3,144.3 2,884.9
-------- --------
4,576.9 4,525.8
-------- --------
Total borrowings 7,380.7 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$1,366.4 million (31st December 2017:
US$1,783.8 million).
8 Share capital
Group
2018 2017
US$m US$m
Three months ended 31st December
Issued and fully paid:
Balance at 1st October and 31st December
* 395,236,288 (2017: 395,236,288) ordinary shares 1,381.0 1,381.0
Year ended 31st December
Issued and fully paid:
Balance at 1st January and 31st December
* 395,236,288 (2017: 395,236,288) ordinary shares 1,381.0 1,381.0
======== ========
There were no rights, bonus or equity issues during the
year.
The Company did not hold any treasury shares as at 31st December
2018 (31st December 2017: Nil) and did not have any unissued shares
under convertibles as at 31st December 2018 (31st December 2017:
Nil).
There were no subsidiary holdings (as defined in the Listing
Manual of the SGX-ST) as at 31st December 2018 (31st December 2017:
Nil).
9 Revenue reserve
Group Company
Restated Restated
2018 2017 2018 2017
US$m US$m US$m US$m
Movements:
Balance at 1st January 6,012.8 5,508.7 754.6 654.2
Effect of adoption of IFRS 9 and IFRS
15 160.9 6.9 - 4.7
------- -------- ------- --------
Balance at 1st January as restated 6,173.7 5,515.6 754.6 658.9
Asset revaluation reserve realised
on disposal of assets 0.4 0.8 - -
Defined benefit pension plans
- remeasurements 5.2 (7.2) - -
- deferred tax (1.3) 1.7 - -
Share of associates' and joint ventures'
remeasurements
of defined benefit pension plans,
net of tax 2.3 (7.2) - -
Profit attributable to shareholders 419.6 938.8 257.4 389.9
Dividends paid by the Company (339.4) (294.2) (339.4) (294.2)
Change in shareholding (62.1) (1.0) - -
Other 7.8 - - -
Balance at 31st December 6,206.2 6,147.3 672.6 754.6
======= ======== ======= ========
10 Other reserves
Group Company
Restated Restated
2018 2017 2018 2017
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 403.3 402.4 - -
Translation reserve (1,852.6) (1,521.5) 305.3 357.1
Fair value reserve 0.5 15.1 - -
Hedging reserve 5.8 (19.4) - -
Other reserve 3.3 3.3 - -
--------- --------- ------ --------
Balance at 31st December (1,439.7) (1,120.1) 305.3 357.1
========= ========= ====== ========
Movements:
Asset revaluation reserve
Balance at 1st January 402.4 400.4 - -
Revaluation surplus 1.6 2.8 - -
Reserve realised on disposal of assets (0.4) (0.8) - -
Share of associates' and joint ventures'
revaluation surplus (0.3) - - -
Balance at 31st December 403.3 402.4 - -
========= ========= ====== ========
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 0.2 - - -
--------- --------- ------ --------
Balance at 1st January as restated (1,521.5) (1,546.7) 357.1 175.5
Translation difference (331.1) 25.2 (51.8) 181.6
--------- --------- ------ --------
Balance at 31st December (1,852.6) (1,521.5) 305.3 357.1
========= ========= ====== ========
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 (10.8) 10.1 - -
- deferred tax 0.3 (0.2) - -
- transfer to profit and loss (1.4) (2.2) - -
Share of associates' and joint ventures'
fair
value changes of Financial assets
at FVOCI,
net of tax (2.6) 1.8 - -
Others (0.1) - - -
Balance at 31st December 0.5 15.1 - -
========= ========= ====== ========
Hedging reserve
Balance at 1st January (19.4) (5.1) - -
Cash flow hedges
- fair value changes 24.0 (12.8) - -
- deferred tax (5.8) 1.5 - -
- transfer to profit and loss 0.2 6.5 - -
Share of associates' and joint ventures'
fair
value changes of cash flow hedges,
net of tax 6.8 (9.5) - -
Balance at 31st December 5.8 (19.4) - -
========= ========= ====== ========
Other reserve
Balance at 1st January and 31st December 3.3 3.3 - -
========= ========= ====== ========
11 Non-controlling interests
Group
Restated
2018 2017
US$m US$m
Balance at 1st January as previously reported 7,014.1 6,321.8
Effect of adoption of IFRS 9 and IFRS 15 14.3 (1.4)
------- --------
Balance at 1st January as restated 7,028.4 6,320.4
Asset revaluation surplus 1.7 2.8
Share of associates' and joint ventures'
asset revaluation surplus (0.5) -
Financial assets at FVOCI
- fair value changes (11.7) 11.2
- deferred tax 0.3 (0.2)
- transfer to profit and loss (1.5) (2.5)
Share of associates' and joint ventures'
fair value changes of
Financial assets at FVOCI, net of tax (2.6) 1.7
Cash flow hedges
- fair value changes 28.5 (13.9)
- deferred tax (6.9) 1.8
* transfer to profit and loss 0.2 6.5
Share of associates' and joint ventures'
fair value changes of cash
flow hedges, net of tax 12.1 (19.3)
Defined benefit pension plans
- remeasurements 8.9 (13.6)
- deferred tax (2.2) 3.3
Share of associates' and joint ventures'
remeasurements of
defined benefit pension plans, net of tax 2.4 (6.6)
Translation difference (425.3) (52.8)
Profit for the year 1,160.0 970.3
Capital contribution 62.0 67.8
Dividends paid (450.6) (397.7)
Change in shareholding (129.8) (2.6)
Acquisition of subsidiaries 59.6 105.4
Other 12.4 7.7
------- --------
Balance at 31st December 7,345.4 6,989.7
======= ========
12 Cash flows from operating activities
Group
Restated
2018 2017
US$m US$m
Profit before tax 2,174.8 2,396.5
Adjustments for:
------- --------
Financing income (92.1) (111.6)
Financing charges(1) 253.1 158.3
Share of associates' and joint ventures' results
after tax (615.9) (549.2)
Depreciation of property, plant and equipment 583.1 508.8
Depreciation of bearer plants 25.0 24.4
Amortisation of leasehold land use rights
and intangible assets 106.5 100.6
Fair value changes of:
- investment 443.5 (150.2)
- investment properties (13.6) (23.3)
- agricultural produce 10.2 4.4
Impairment/(writeback) of:
- intangible assets 13.1 9.6
- property, plant and equipment (3.9) 5.7
- goodwill - 1.4
- debtors 208.5 196.2
(Profit)/loss on disposal of:
- leasehold land use rights (9.5) (1.5)
- property, plant and equipment (6.4) (2.8)
- investment properties - 10.3
- bearer plants 0.2 0.1
- subsidiaries - (2.8)
- associate and joint venture - 4.5
- investments (3.3) (3.9)
Loss on disposal/write-down of receivables
from collateral vehicles 53.7 58.2
Amortisation of borrowing costs for financial
services companies 9.7 13.7
Write-down of stocks 14.6 7.6
Changes in provisions 28.5 26.4
Foreign exchange loss 37.7 10.3
1,042.7 295.2
Operating profit before working capital changes 3,217.5 2,691.7
Changes in working capital:
------- --------
Properties for sale 55.9 (217.8)
Stocks (446.1) (235.6)
Concession rights (20.0) (78.6)
Financing debtors (331.1) (43.3)
Debtors (2) (831.9) (877.9)
Creditors (3) 1,054.8 886.3
Pensions 22.0 27.2
(496.4) (539.7)
------- --------
Cash flows from operating activities 2,721.1 2,152.0
======= ========
(1) Increase in financing charges mainly due to higher levels of net debt
(2) Increase in debtors balance due mainly to higher sales activities
(3) Increase in creditors balance due mainly to higher trade purchases
13 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$m
Three months ended 31st December
2018
Adura Cyber Security Services
Pte Ltd
- cyber security services - 0.1
Jardine Matheson Limited
- management support services - (1.9)
JLT Specialty Pte Ltd
- insurance brokerage services - 0.1
Jardine Lloyd Thompson Limited
- insurance brokerage services - 0.1
JLT Specialty Limited
- insurance services - 0.1
PT Hero Supermarket Tbk
- transportation services - 0.2
- (1.3)
========================= ========================
Year ended 31st December 2018
Adura Cyber Security Services
Pte Ltd
- cyber security services - 0.1
Jardine Matheson Limited
- management support services - 1.6
JLT Specialty Pte Ltd
- insurance brokerage services - 0.3
Jardine Lloyd Thompson Limited
- insurance brokerage services - 0.1
JLT Specialty Limited
- insurance services - 0.1
Hongkong Land Ltd
- management support services - 0.1
PT Hero Supermarket Tbk
- transportation services - 0.4
Cold Storage Singapore (1983)
Pte Ltd
- sale of a motor vehicle - 0.2
- purchase of a motor vehicle - 0.1
Unicode Investments Limited
- subscription of shares in 10.4 -
a joint venture
PT Astra Land Indonesia
- subscription of shares by 10.4 -
a subsidiary
PT Brahmayasa Bahtera
2.3 -
* sale of land to a joint venture
Alexander Newbigging, Director
of the Company
- purchase of a motor vehicle 0.1 -
------------------------- ------------------------
23.2 3.0
========================= ========================
14 Additional information
Group
Restated
2018 2017 Change
US$m US$m %
Astra International
Automotive 271.7 283.7 -4
Financial services 171.4 124.6 37
Heavy equipment, mining, construction
& energy 230.6 167.7 38
Agribusiness 43.2 59.9 -28
Infrastructure & logistics 6.9 4.2 64
Information technology 7.3 7.4 -1
Property 18.5 0.2 nm
749.6 647.7 16
Less: Withholding tax on dividend (30.9) (25.4) 22
718.7 622.3 15
Direct Motor Interests
Singapore 61.6 57.0 8
Malaysia 1.9 (1.3) nm
Myanmar (4.9) (2.5) 96
Indonesia (Tunas Ridean) 17.5 14.9 17
Vietnam
- automotive 65.8 48.8 32
- real estate 7.2 7.7 -6
73.0 56.5 29
Less: central overheads (4.5) (3.3) 36
144.6 121.3 19
Other Strategic Interests
Siam City Cement 20.2 11.3 79
Refrigeration Electrical Engineering 19.0 13.7 39
Vinamilk 31.9 9.3 nm
71.1 34.3 107
Corporate costs
Central overheads (18.4) (18.8) -2
Dividend income from other investments 4.9 - nm
Net financing charges and exchange differences (62.9) 10.4 nm
(76.4) (8.4) nm
Underlying profit attributable to shareholders 858.0 769.5 12
15 Closure of books
NOTICE IS HEREBY GIVEN that, subject to shareholders' approval
being obtained at the forthcoming 50th Annual General Meeting of
the Company ("AGM") for the proposed final one-tier tax-exempt
dividend of US$0.69 per share for the financial year ended 31st
December 2018 (the "Final Dividend"), the Transfer Books and
Register of Members of the Company will be closed from 5.00 p.m. on
Monday, 14th May 2019 (the "Books Closure Date") up to, and
including Tuesday, 15th May 2019, for the purpose of determining
shareholders' entitlement to the Final Dividend. Duly completed
transfers of shares of the Company in physical scrip received by
the Company's Share Registrar, M & C Services Private Limited
at 112 Robinson Road #05-01, Singapore 068902 up to 5.00 p.m. on
the Books Closure Date will be registered before entitlements to
the Final Dividend are determined.
Subject to approval being obtained as aforesaid, shareholders
(being Depositors) whose securities accounts with The Central
Depository (Pte) Limited are credited with shares of the Company as
at 5.00 p.m. on the Books Closure Date will rank for the Final
Dividend.
The Final Dividend, if approved at the AGM, will be paid on
Tuesday, 25th June 2019. Shareholders will have the option to
receive the Final Dividend in Singapore dollars, and in the absence
of any election, the Final Dividend will be paid in US dollars.
Details on this elective will be furnished to shareholders after
approval of the Final Dividend.
16 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 other than the non-trading items shown in Note 5
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.
On 3rd January 2019, the Group announced the incorporation of a
new wholly-owned subsidiary known as Cycle & Carriage Leasing
Pte. Ltd. ("CCL") in Singapore with an initial capital of S$1.00.
The principal activity of CCL is vehicle leasing.
On 11th January 2019, the Group announced the purchase of an
additional 33,300 shares in Refrigeration Electrical Engineering
Corporation for an aggregate cash consideration of approximately
US$0.05 million increasing its shareholding from 24.88% to
24.89%.
No significant event or transaction other than as contained in
this report has occurred between 1st January 2019 and the date of
this report.
17 Notice pursuant to Rule 704(13) of the Listing Manual
Pursuant to Rule 704(13) of the SGX-ST Listing Manual, Jardine
Cycle & Carriage Limited wishes to announce that no person
occupying a managerial position in the Company or any of its
principal subsidiaries is a relative of a director or chief
executive officer or substantial shareholder of the Company.
- 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 year ended 31st December 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCZMGZZKVFGLZM
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