TIDMJDS TIDMJAR
RNS Number : 9081F
Jardine Strategic Hldgs Ltd
27 February 2018
To: Business Editor 27th February 2018
For immediate release
PT Astra International Tbk
2017 Full Year Financial Statements
The following announcement was issued today by the Company's
75%-owned subsidiary, Jardine Cycle & Carriage Limited, which
holds 50.1% of PT Astra International Tbk.
For further information, please contact:
Jardine Matheson Limited
Neil M McNamara (852) 2843 8227
Brunswick Group Limited
Karin Wong (852) 3512 5077
27th February 2018
PT ASTRA INTERNATIONAL TBK
2017 FULL YEAR FINANCIAL STATEMENTS
Highlights
-- Net earnings per share up 25% at Rp466
-- Higher market share for motorcycles but lower for cars in challenging markets
-- Return to profitability at Permata Bank
-- Sustained higher commodity prices benefited heavy equipment
and mining businesses, as well as agribusiness
"After a satisfactory overall result in 2017, the Group should
continue to benefit from improving economic conditions and stable
commodity prices, although competition seen in the car market is
expected to intensify."
Prijono Sugiarto
President Director
Group Results
For the year ended 31st December
----------------------------- -----------------------------------------
2017 2016 Change
Rp bn Rp bn %
----------------------------- --------------- --------------- -------
Net revenue 206,057 181,084 14
----------------------------- --------------- --------------- -------
Net income* 18,881 15,156 25
----------------------------- --------------- --------------- -------
Rp Rp
----------------------------- --------------- --------------- -------
Net earnings per share 466 374 25
----------------------------- --------------- --------------- -------
As at 31st As at 31st Change
December 2017 December 2016 %
Rp bn Rp bn
----------------------------- --------------- --------------- -------
Shareholders' funds** 123,645 111,951 10
----------------------------- --------------- --------------- -------
Rp Rp
----------------------------- --------------- --------------- -------
Net asset value per share** 3,054 2,765 10
----------------------------- --------------- --------------- -------
* Net income is profit attributable to owners of the parent,
i.e. Astra International shareholders.
** Shareholders' funds and net asset value per share are based
on equity attributable to owners of the parent.
The financial results for the year ended 31st December 2017 and
2016 as well as the financial position as at 31st December 2017 and
2016 have been prepared in accordance with Indonesian Financial
Accounting Standards and are audited in accordance with the
auditing standards established by the Indonesian Institute of
Certified Public Accountants.
PRESIDENT DIRECTOR'S STATEMENT
Overview
The Group's results benefited significantly from the return to
profitability at Permata Bank and higher profits from the heavy
equipment and mining businesses due to sustained higher commodity
prices, which also positively affected trading performances from
the agribusiness activities. The contribution from the automotive
businesses, however, was modestly lower due to the impact of
increasing competition in the car market, which showed no overall
growth. The performance of the motorcycle operations was stable
against the backdrop of a relatively soft market.
Performance
The Group's consolidated net revenue for the year at Rp206.1
trillion was 14% higher than 2016, with higher revenues achieved in
most business segments.
The Group's net income rose to Rp18.9 trillion, a 25% increase
compared to the previous year.
The net asset value per share was Rp3,054 at 31st December 2017,
10% higher than at the end of 2016.
Net cash, excluding the Group's financial services subsidiaries,
was Rp2.7 trillion at the end of 2017 compared with net cash of
Rp6.2 trillion at 31st December 2016. The decrease was due mainly
to new investments in toll roads, property and power plants.
Correspondingly, at the Group's parent company, Astra
International, net debt rose to Rp9.2 trillion compared with net
debt of Rp7.1 trillion at the end of 2016. The Group's financial
services subsidiaries had net debt of Rp46.1 trillion at the end of
2017, compared with Rp47.7 trillion at the end of 2016.
A final dividend of Rp130 per share (2016: Rp113 per share) will
be proposed at the Annual General Meeting to be held in April 2018.
The proposed final dividend together with the interim dividend of
Rp55 per share (2016: Rp55 per share) will bring the total dividend
for the year to Rp185 per share (2016: Rp168 per share). The
proposed final dividend takes into consideration the increased debt
at Astra International and its investment plans going forward.
Business Activities
Net income attributable to shareholders by business segment was
as follows:
Net Income Attributable to Astra
International
--------------------------------------- -------------------------------------
For the year ended 31st December
--------------------------------------- -------------------------------------
2017 2016 Change
Rp bn Rp bn %
--------------------------------------- ----------- ----------- -----------
Automotive 8,868 9,166 (3)
--------------------------------------- ----------- ----------- -----------
Financial Services 3,752 789 376
--------------------------------------- ----------- ----------- -----------
Heavy Equipment, Mining, Construction
and Energy 4,469 3,032 47
--------------------------------------- ----------- ----------- -----------
Agribusiness 1,602 1,599 0
--------------------------------------- ----------- ----------- -----------
Infrastructure and Logistics (231) 263 (188)
--------------------------------------- ----------- ----------- -----------
Information Technology 198 196 1
--------------------------------------- ----------- ----------- -----------
Property 223 111 101
--------------------------------------- ----------- ----------- -----------
Attributable Net Income 18,881 15,156 25
--------------------------------------- ----------- ----------- -----------
Automotive
Net income from the Group's automotive division was down by 3%
at Rp8.9 trillion. Improved earnings in the components business
were more than offset by a decline in the car business following
lower sales and discounting pressure arising from increasing
competition. Results from the motorcycle business were relatively
flat.
The wholesale market for cars was little changed at 1.1 million
units. Astra's car sales were 2% lower at 579,000 units, with its
market share decreasing from 55% to 54%. The Group launched 11 new
models and 11 revamped models during the year.
The wholesale market for motorcycles decreased by 1% at 5.9
million units. Astra Honda Motor's domestic sales were maintained
at 4.4 million units, resulting in its market share improving from
74% to 75%. The Group launched eight new models and 18 revamped
models during the year.
Astra Otoparts, the Group's components business, reported net
income up 32% to Rp551 billion due mainly to an increase in
revenues arising from higher replacement market sales and improved
contributions from its joint venture and associate companies.
Financial Services
Net income from the Group's financial services division
increased to Rp3.8 trillion from Rp789 billion in the prior year
due to a return to profitability at Permata Bank and improved
earnings contributions from Astra Sedaya Finance, Federal
International Finance and Asuransi Astra Buana.
The Group's consumer finance businesses saw a 3% increase in the
amount financed, including amounts financed through joint bank
financing without recourse to Rp81.7 trillion. Car-focused Astra
Sedaya Finance reported a 2% increase in net income at Rp957
billion. Toyota Astra Financial Services, however, recorded a 95%
decrease in net income to Rp18 billion as a result of increased
loan loss provisions, mainly in the low cost car segment.
Motorcycle-focused Federal International Finance's net income was
up 11% at Rp2.0 trillion, as it benefited from Honda's improved
market share as well as loan product diversification.
The amount financed through the Group's heavy equipment-focused
finance operations increased by 25% to Rp5.9 trillion. There was,
however, a significant increase in loan loss provisions relating to
small and medium sized borrowers.
Permata Bank, in which Astra holds a 44.6% interest, reported
net income of Rp748 billion for the year, compared with a net loss
of Rp6.5 trillion in 2016. The bank's gross non-performing loan
ratio improved to 4.6% at the end of 2017 compared with 8.8% at the
end of 2016, while its net non-performing loan ratio improved to
1.7% from 2.2%. Permata Bank's return to profitability was mainly
driven by an improvement in its asset quality, good underlying
credit growth in the second half of the year and recoveries from
non-performing loans. To strengthen its capital base, Permata Bank
completed a further Rp3.0 trillion rights issue in June 2017, which
was fully subscribed.
Net income at Asuransi Astra Buana, the Group's general
insurance company, was 9% higher at Rp1.0 trillion, primarily due
to increased investment income. During the year, the Group's life
insurance joint venture, Astra Aviva Life, acquired more than
259,000 new individual life customers and 373,000 new participants
for its corporate employee benefits programmes, bringing the
respective totals of people insured at the end of December 2017 to
390,000 and 896,000.
Heavy Equipment, Mining, Construction and Energy
Net income from the Group's heavy equipment, mining,
construction and energy division increased by 47% to Rp4.5
trillion.
United Tractors, which is 59.5%-owned, reported net income 48%
higher at Rp7.4 trillion. The increase was mainly due to
significantly stronger coal prices that led to improved
performances in its construction machinery and mining contracting
businesses, as well as its mining operations.
In its construction machinery business, Komatsu heavy equipment
sales were up 74% at 3,788 units, while parts and service revenues
were also higher. The mining contracting operations of Pamapersada
Nusantara recorded a 3% increase in coal production at 113 million
tonnes, while overburden removal was up 14% at 801 million bank
cubic metres. United Tractors' mining subsidiaries, however,
reported coal sales down 8% at 6.3 million tonnes due to lower
volumes in its coal trading business.
Suprabari Mapanindo Mineral, the coking coal company in Central
Kalimantan which is 80.1%-owned by United Tractors, started
production at the end of 2017.
General contractor Acset Indonusa, a 50.1% subsidiary of United
Tractors, reported net income up 126% at Rp154 billion. New
contracts worth Rp8.4 trillion were secured during 2017, compared
with Rp3.8 trillion secured in the previous year.
Bhumi Jati Power, 25%-owned by United Tractors, is in the
process of constructing two 1,000MW power plants in Central Java,
which are scheduled to start commercial operations in 2021.
Agribusiness
Net income from the Group's agribusiness division was flat at
Rp1.6 trillion.
Astra Agro Lestari, which is 79.7%-owned, reported net income of
Rp2.0 trillion. Despite improved revenue from higher crude palm oil
prices and sales volumes, the result was little changed from 2016,
which had benefited from significant foreign exchange translation
gains. Excluding the impact of foreign exchange in both years, net
income would have been 8% higher. Average crude palm oil prices
achieved were 6% higher at Rp8,271/kg, while sales of crude palm
oil and its derivatives were 12% higher at 1.7 million tonnes
compared with 2016.
Infrastructure and Logistics
The Group's infrastructure and logistics division reported a net
loss of Rp231 billion, compared with a net profit Rp263 billion in
2016. This was due mainly to initial losses on the newly opened
Cikopo-Palimanan toll road, in which the Group acquired a 45%
interest earlier in the year, and the loss on the disposal of the
Group's 49% interest in PAM Lyonnaise Jaya, a water concession with
five years left to run.
The Group's portfolio of toll road interests expanded during the
year from 236km to 353km, of which 269km is operational. At the
mature 72.5km Tangerang-Merak toll road, operated by 79.3%-owned
Marga Mandalasakti, traffic volumes increased by 4% to 50 million
vehicles. The wholly-owned 40.5km Jombang-Mojokerto toll road is
now fully constructed with the final two sections completed in the
fourth quarter of the year. At the 116.8km Cikopo-Palimanan toll
road, traffic volumes increased by 13% to 17 million vehicles,
while at the 40% owned 72.6km Semarang-Solo toll road, 40.1km is
now in operation with traffic volumes increased by 3% to 12 million
vehicles.
Serasi Autoraya's net income increased by 101% to Rp201 billion,
due to higher net margins in its car leasing and rental, as well as
logistics businesses, despite a 2% decline in its vehicles under
contract and 18% lower used car sales.
Information Technology
Net income from the Group's information technology division was
1% higher at Rp198 billion.
Astra Graphia, which is 76.9%-owned, reported net income
modestly higher at Rp257 billion, mainly due to increased revenues
from its office services business.
Property
Net income from the Group's property division was up 101% at
Rp223 billion, primarily due to higher development earnings
recognised on its Anandamaya Residences project. Anandamaya
Residences and Menara Astra are scheduled for completion in
2018.
50%-owned Astra Land Indonesia, which owns 67% of Astra Modern
Land, is in the process of developing a 67-hectare site in East
Jakarta.
Recent Corporate Action
In February 2018, the Group invested US$150 million for a
minority stake in GO-JEK, Indonesia's leading multi-platform
technology group, providing access to a wide range of services from
transportation and payments to food delivery, logistics and other
on-demand services. It is hoped that the investment will create
value and accelerate digital initiatives within the Group's
businesses.
Prospects
After a satisfactory overall result in 2017, the Group should
continue to benefit in 2018 from improving economic conditions and
stable commodity prices, although competition seen in the car
market is expected to intensify.
Prijono Sugiarto
President Director
27th February 2018
- end -
For further information, please contact:
PT Astra International Tbk
Pongki Pamungkas, Chief of Corporate Communication, Social
Responsibility & Security
Tel: + 62 - 21 - 6530 4956
This information is provided by RNS
The company news service from the London Stock Exchange
END
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