TIDMJDS TIDMJAR
RNS Number : 1037X
Jardine Strategic Hldgs Ltd
26 April 2019
To: Business Editor 26th April 2019
For immediate release
Jardine Cycle & Carriage Limited
2019 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
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
Ben Fry (65) 6426 8103
26th April 2019
JARDINE CYCLE & CARRIAGE LIMITED
2019 FIRST QUARTER FINANCIAL STATEMENTS AND DIVID
ANNOUNCEMENT
HIGHLIGHTS
-- Underlying earnings per share down 8%
-- Astra earnings increase by 5% in local currency terms
-- Lower contribution from non-Astra interests
"While Astra's earnings increased by 5% in local currency terms,
the increase in its contribution to the Group was lower due to a
weaker local currency this year compared with the first quarter of
2018. Earnings from the Group's non-Astra interests fell by 22% due
to the timing of dividends from Vinamilk. Setting aside this impact
of dividends from Vinamilk, the non-Astra interests would have
shown 6% growth. For the rest of the year, Astra is expected to
continue to benefit from higher contributions from its financial
services and mining contracting businesses as well as its newly
acquired gold mining business, but concerns remain over lacklustre
demand and intense competition in the car market and weaker
commodity prices. The Group's non-Astra interests are expected to
show slower growth."
Ben Keswick, Chairman
26th April 2019
Group Results
------------------------------------- --------------------------------- --------- -----------
Three months ended 31st March
------------------------------------- --------------------------------------------- -----------
Restated
2019 2018 Change 2019
US$m US$m % S$m
--------------------------------------- --------------- --------------- --------- -----------
Revenue 4,716 4,643 2 6,369
Underlying profit attributable
to
shareholders (#) 201 219 -8 272
Non-trading items^ 111 (84) nm 150
Profit attributable to shareholders 312 135 131 422
--------------------------------------- --------------- --------------- --------- -----------
USc USc Sc
--------------------------------------- --------------- --------------- --------- -----------
Underlying earnings per share
(#) 51 55 -8 69
Earnings per share 79 34 131 107
At At At
31.3.2019 31.12.2018 31.3.2019
--------------- --------------- ---------
US$m US$m S$m
--------------------------------------- --------------- --------------- --------- -----------
Shareholders' funds 6,539 6,144 6 8,864
--------------------------------------- --------------- --------------- --------- -----------
US$ US$ S$
--------------------------------------- --------------- --------------- --------- -----------
Net asset value per share 16.55 15.54 6 22.43
--------------------------------------- --------------- --------------- --------- -----------
The exchange rate of US$1=S$1.36 (31st December 2018:
US$1=S$1.37) was used for translating assets and liabilities at the
balance sheet date and US$1=S$1.35 (31st March 2018: US$1=S$1.32)
was used for translating the results for the year. The financial
results for the three months ended 31st March 2019 and 31st March
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 16 Leases, 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 4 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 gain/losses
arising from the revaluation of the Group's equity investments.
nm not meaningful
CHAIRMAN'S STATEMENT
Overview
Jardine Cycle & Carriage ("JC&C") saw an 8% reduction in
underlying profit in the first quarter of the year, with increased
earnings from Astra offset by a lower contribution from the Group's
non-Astra interests, principally due to the timing of dividends
from Vinamilk.
Performance
The Group's revenue for the three months ended 31st March 2019
increased by 2% to US$4.7 billion, primarily due to higher revenue
in most of Astra's businesses, in particular financial services and
heavy equipment, mining, construction and energy. The Group's
underlying profit attributable to shareholders of US$201 million
was 8% lower than the comparable period last year, with the
underlying profit per share of USc51 also 8% down. Profit
attributable to shareholders increased significantly to US$312
million from US$135 million, after accounting for net non-trading
gains of US$111 million, principally unrealised fair value gains
related to non-current investments.
Astra contributed US$179 million to the Group's total underlying
profit, an increase of 1%. The underlying profit from the Group's
Direct Motor Interests was 6% higher at US$28 million, but no
contribution was recorded from its Other Strategic Interests in the
period, compared to dividends of US$10 million received from
Vinamilk in the comparable period last year. Vinamilk's 2018 final
dividend was approved by its shareholders in April 2019 and will be
included in the results for the second quarter. Corporate costs
were US$6 million compared to an income of US$5 million in the
previous year primarily due to higher net financing charges and
lower foreign exchange gain from the translation of foreign
currency loans.
The Group's consolidated net debt, excluding Astra's financial
services subsidiaries, was US$2.3 billion at the end of March 2019,
compared to US$2.2 billion at the end of 2018. This increase was
largely due to Astra's additional investment in GOJEK during the
period. Net debt within Astra's financial services subsidiaries
remained stable at US$3.3 billion compared to the end of 2018.
JC&C parent's net debt was US$1.3 billion at the end of March
2019, in line with the previous year end.
The Board has not declared a dividend for the three months ended
31st March 2019 (31st March 2018: Nil). Dividends are usually
declared on a semi-annual basis for every six-month period ending
30th June (in respect of an interim dividend) and 31st December (in
respect of a final dividend).
GROUP REVIEW
ASTRA
Astra reported a net profit equivalent to US$369 million, under
Indonesian accounting standards, 5% higher in its local currency
terms. This was mainly due to increased contributions from its
financial services and heavy equipment, mining, construction and
energy businesses, which more than offset lower contributions from
its automotive business and agribusiness.
In February 2019, as part of the collaboration between Astra and
GOJEK, a joint venture company was formed to provide fleet
management support for the ride-hailing online transportation
system of GO-CAR in Indonesia. This strategic collaboration was
launched following an additional US$100 million of equity
investment by Astra in GOJEK in January 2019, which brings the
total investment in GOJEK to US$250 million.
Automotive
Net income from the group's automotive division fell by 10% to
US$135 million, mainly due to lower car sales volumes and increased
material costs which affected the manufacturing operations.
The wholesale market for cars declined by 13% to 254,000 units.
Astra's car sales, however, were only 5% lower at 134,000 units
which resulted in an increase in market share from 49% to 53% in
the first quarter of 2019. The group launched 6 new models and 2
revamped models during the period.
The wholesale market for motorcycles increased by 19% in the
first two months of this year, compared with the equivalent period
in 2018. Wholesale market size information is not yet available for
March 2019. The group launched 2 new models and 12 revamped models
during the period.
Astra Otoparts, the group's components business, reported a 9%
increase in net income at US$11 million. The increase in net income
was mainly due to higher revenue generated from its original
equipment manufacturing, replacement market and export
segments.
Financial Services
Net income from the group's financial services division
increased by 32% to US$99 million, due to higher contributions from
most business segments.
The group's consumer finance businesses saw a 5% increase in the
amount financed to US$1.5 billion. The net income contribution from
the group's car-focused finance companies increased by 51% to US$24
million, mainly due to lower non-performing loan losses.
Motorcycle-focused Federal International Finance's net income was
up 11% at US$43 million, primarily due to a larger loan
portfolio.
The amount financed through the group's heavy equipment-focused
finance operations increased by 15% to US$69 million. The net
income contribution from the group's heavy equipment-focused
finance operations increased by 69% to US$2 million, reflecting
higher levels of lending to corporate customers.
Permata Bank, in which Astra holds a 44.6% interest, reported
net income of US$27 million compared with US$12 million in the
first quarter of 2018, mainly due to higher levels of recoveries
from non-performing loans. The bank's gross and net non-performing
loan ratios were 3.8% and 1.6%, respectively, at the end of March
2019 compared to 4.4% and 1.7% at the end of 2018.
Asuransi Astra Buana, the group's general insurance company,
reported a 9% increase in net income at US$19 million, due to
higher investment income. During the period, the group's life
insurance joint venture, Astra Aviva Life, acquired more than
170,000 new individual life customers and 50,000 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 20% to US$129
million.
United Tractors, which is 59.5%-owned, reported net income of
US$216 million, 21% higher than the comparable period in 2018. The
increase was mainly due to the improved performance in its mining
contracting business and the contribution from the gold mining
operation acquired in December 2018.
Within United Tractors' construction machinery business, Komatsu
heavy equipment sales increased by 1% to 1,181 units, while parts
and service revenues were also higher. The mining contracting
operations of wholly-owned Pamapersada Nusantara recorded a 14%
increase in overburden removal volume at 235 million bank cubic
metres and 15% higher coal production at 31 million tonnes. United
Tractors' coal mining subsidiaries reported 4% lower coal sales at
3 million tonnes, including 325,000 tonnes of coking coal sales by
80.1%-owned Suprabari Mapanindo Mineral. Agincourt Resources, a
95%-owned subsidiary of United Tractors, reported gold sales of
97,000 oz in the first quarter of 2019.
General contractor Acset Indonusa, a 50.1%-owned subsidiary of
United Tractors, reported a net loss of US$6 million, compared to
net income of US$3 million recorded in the first quarter last year,
mainly due to increased construction and funding costs of several
ongoing projects.
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 operations in 2021.
Agribusiness
Net income from the group's agribusiness division was down 89%
at US$2 million.
Astra Agro Lestari, which is 79.7%-owned, reported a 89% decline
in net income to US$3 million primarily due to a fall in crude palm
oil prices, which were 20% lower at Rp6,252/kg compared with the
average in the first quarter of 2018. This more than offset a 25%
increase in crude palm oil and derivatives sales to 599,000
tonnes.
Infrastructure and Logistics
The group's infrastructure and logistics division reported a net
income of US$1 million, compared with a net loss of US$2 million in
the first quarter of 2018. This was mainly due to improved earnings
from operational toll roads. 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 decreased by 19% to US$3 million,
due to a 2% fall in vehicles under contract at 22,000 and 2% lower
used car sales at 8,000 units.
Information Technology
Net income from the group's information technology division was
26% lower at US$1 million.
Astra Graphia, which is 76.9%-owned, reported net income of US$2
million, 26% lower than the first quarter of last year. While
revenues in the document solutions and office services businesses
rose, they were offset by higher operating costs.
Property
The group's property division reported a net profit of US$1
million, compared to a marginal net profit in the first quarter of
last year, mainly due to increased earnings from Menara Astra, with
no project completions in either period.
The group's other projects include 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$28
million, 6% up on the equivalent period in the prior year.
Singapore
Profit from the Group's wholly-owned business, Cycle &
Carriage Singapore, rose by 6% to US$14 million due to an increase
in the number of vehicles sold. The Singapore passenger car market
rose by 15% to 20,500 units, as registrations in the first quarter
of 2018 were negatively affected by the implementation of the
Vehicle Emission Scheme in January 2018, which saw tax increases on
most car models. The Group sold a total of 4,300 passenger cars, an
increase of 21% compared with the first quarter of 2018,
maintaining its 21% market share.
Malaysia
In Malaysia, 59.1%-owned Cycle & Carriage Bintang
contributed a loss of US$1 million, due to a decline in unit sales,
as well as higher operating expenses and financing costs, compared
to a loss of US$2 million in the prior year, which included
adjustments for stock losses.
Myanmar
Cycle & Carriage Myanmar, in which the Group owns a 60%
interest, contributed a loss of US$2 million, compared to a loss of
US$1 million in the prior year, mainly due to higher depreciation
charges on new facilities in Yangon and increased stock
provisions.
Indonesia
In Indonesia, 46.2%-owned Tunas Ridean's profit contribution of
US$6 million was 12% higher than the previous year, due to stronger
contributions from its automotive and consumer finance operations,
which were partly offset by a lower contribution from its rental
business. Motor car sales of 12,800 units were 7% lower, while
motorcycle sales rose 10% to 56,800 units.
Vietnam
In Vietnam, the profit contribution from 25.3%-owned Truong Hai
Auto Corporation ("Thaco") was US$12 million, 2% higher than the
first quarter of the previous year, despite a 13% fall in unit
sales caused by increased CBU competition. The increase was due to
improved margins and lower stock provisions. In April 2019, the
Company acquired a further 1.3% interest in Thaco for US$168
million, increasing its shareholding to 26.6%.
OTHER STRATEGIC INTERESTS
The Group's Other Strategic Interests did not recognise any
profits in the first quarter of 2019, compared to US$10 million in
the comparable period last year, when dividends were recognised
from its 10% interest in Vinamilk. Instead, the final dividend from
the previous year will be received in June of this year. As in the
prior year, the Group did not report any contribution from its
25.5% holding in Siam City Cement Public Company in Thailand and
its 24.9% holding in Refrigeration Electrical Engineering
Corporation in Vietnam, since both companies have yet to announce
their first quarter results. Together, these results are not
expected to have a material impact on the Group. They will be
included in the Group's second quarter earnings.
Outlook
While Astra's earnings increased by 5% in local currency terms
the increase in the contribution to the Group was lower due to a
weaker local currency this year compared with the first quarter of
2018. Earnings from the Group's non-Astra interests fell by 22% due
to the timing of dividends from Vinamilk. Setting aside this impact
of dividends from Vinamilk, the non-Astra interests would have
shown 6% growth. For the rest of the year, Astra is expected to
continue to benefit from higher contributions from its financial
services and mining contracting businesses as well as its newly
acquired gold mining business, but concerns remain over lacklustre
demand and intense competition in the car market and weaker
commodity prices. The Group's non-Astra interests are expected to
show slower growth.
Ben Keswick, Chairman
26th April 2019
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 2019 to be false or misleading in
any material respect.
On behalf of the Directors
Ben Keswick
Director
Vimala Menon
Director
26th April 2019
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the three months ended
31st March 2019
-----------------------------------------------------------------
Restated
2019 2018 Change
Note US$m US$m %
Revenue 4,716.2 4,643.2 2
Net operating costs 2 (4,060.9) (4,209.1) -4
Operating profit 2 655.3 434.1 51
Financing income 22.5 22.4 0
Financing charges (87.2) (49.4) 77
---------- ----------
Net financing charges (64.7) (27.0) 140
Share of associates'
and joint
ventures' results after
tax 124.0 126.1 -2
Profit before tax 714.6 533.2 34
Tax 3 (119.4) (120.8) -1
Profit after tax 595.2 412.4 44
========== ==========
Profit attributable to:
Shareholders of the Company 312.4 135.3 131
Non-controlling interests 282.8 277.1 2
595.2 412.4 44
========== ==========
USc USc
----------------------------- ----- ---------- ---------- -------
Earnings per share 4 79 34 132
----------------------------- ----- ---------- ---------- -------
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the three
months ended 31st March 2019
--------------------------------------------------------------
Restated
2019 2018
US$m US$m
Profit for the period 595.2 412.4
Items that will not be reclassified
to profit or loss:
------- ---------
Remeasurements of defined benefit
pension plans 0.2 (1.0)
Tax on items that will not be reclassified - 0.2
Share of other comprehensive (expense)/income
of associates
and joint ventures, net of tax (0.2) 0.6
---------
- (0.2)
Items that may be reclassified subsequently
to profit or loss:
------- ---------
Translation difference
- gain/(loss) arising during the
period 187.5 (134.7)
Financial assets at FVOCI(1)
- gain/(loss) arising during the
period 9.6 (3.3)
- transfer to profit and loss - (1.4)
Cash flow hedges
- loss arising during the period (19.2) (0.1)
- transfer to profit and loss 0.8 0.3
Tax relating to items that may be
reclassified 4.5 0.1
Share of other comprehensive (expense)/
income of associates
and joint ventures, net of tax (12.1) 27.8
171.1 (111.3)
Other comprehensive income/(expense)
for the period 171.1 (111.5)
Total comprehensive income for the
period 766.3 300.9
======= =========
Attributable to:
Shareholders of the Company 396.0 107.3
Non-controlling interests 370.3 193.6
766.3 300.9
======= =========
(1) Fair value through other comprehensive income ("FVOCI")
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 31st March 2019
-----------------------------------------------
Restated Restated
At At At
Note 31.3.2019 31.12.2018 1.1.2018
US$m US$m US$m
Non-current assets
Intangible assets 1,702.5 1,630.6 1,079.5
Property, plant and equipment 4,613.6 4,457.5 3,404.5
Investment properties 600.4 587.2 618.6
Bearer plants 499.2 486.8 498.0
Interests in associates
and joint ventures 4,347.2 4,250.6 4,280.3
Right-of-use assets 765.4 753.0 762.1
Non-current investments 2,172.9 1,911.2 2,031.8
Non-current debtors 2,901.0 2,867.1 2,824.5
Deferred tax assets 317.4 300.7 322.4
---------- -----------
17,919.6 17,244.7 15,821.7
---------- ----------- ----------
Current assets
Current investments 52.7 50.4 22.7
Properties for sale 355.8 355.8 254.0
Stocks 2,041.1 2,039.7 1,723.8
Current debtors 5,939.5 5,602.1 5,044.9
Current tax assets 163.5 134.9 120.5
Bank balances and other
liquid funds
---------- ----------- ----------
- non-financial services
companies 1,931.5 1,711.4 2,398.7
- financial services companies 326.6 187.5 241.1
---------- ----------- ----------
2,258.1 1,898.9 2,639.8
---------- ----------- ----------
10,810.7 10,081.8 9,805.7
---------- ----------- ----------
Total assets 28,730.3 27,326.5 25,627.4
---------- ----------- ----------
Non-current liabilities
Non-current creditors 279.8 271.4 241.6
Provisions 153.8 146.7 113.7
Non-current lease liabilities 103.3 93.3 89.0
Long-term borrowings 5
---------- ----------- ----------
- non-financial services
companies 1,529.1 1,125.3 844.9
- financial services companies 1,745.1 1,655.3 1,486.5
---------- ----------- ----------
3,274.2 2,780.6 2,331.4
Deferred tax liabilities 421.4 428.0 212.9
Pension liabilities 263.8 253.0 262.2
---------- -----------
4,496.3 3,973.0 3,250.8
---------- ----------- ----------
Current liabilities
Current creditors 5,023.1 4,951.5 4,152.7
Provisions 96.7 92.8 87.2
Current lease liabilities 18.4 40.5 20.0
Current borrowings 5
---------- ----------- ----------
- non-financial services
companies 2,740.9 2,744.5 2,368.5
- financial services companies 1,857.5 1,824.5 2,153.9
---------- ----------- ----------
4,598.4 4,569.0 4,522.4
Current tax liabilities 233.8 213.8 135.4
---------- -----------
9,970.4 9,867.6 8,917.7
---------- -----------
Total liabilities 14,466.7 13,840.6 12,168.5
---------- ----------- ----------
Net assets 14,263.6 13,485.9 13,458.9
========== =========== ==========
Equity
Share capital 6 1,381.0 1,381.0 1,381.0
Revenue reserve 7 6,514.5 6,202.4 6,171.9
Other reserves 8 (1,356.2) (1,439.6) (1,120.1)
---------- -----------
Shareholders' funds 6,539.3 6,143.8 6,432.8
Non-controlling interests 9 7,724.3 7,342.1 7,026.1
---------- -----------
Total equity 14,263.6 13,485.9 13,458.9
========== =========== ==========
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the three months
ended 31st March 2019
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
2019
Balance at 1st
January 1,381.0 6,206.2 403.3 (1,852.6) 9.6 6,147.5 7,345.4 13,492.9
Effect of
adoption of IFRS
16 - (3.8) - 0.1 - (3.7) (3.3) (7.0)
-------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance as at 1st
January
as restated 1,381.0 6,202.4 403.3 (1,852.5) 9.6 6,143.8 7,342.1 13,485.9
Total
comprehensive
income - 312.6 - 87.9 (4.5) 396.0 370.3 766.3
Dividends
declared to
non-controlling
Interest - - - - - - (0.6) (0.6)
Issue of shares
to non-
controlling
interests - - - - - - 15.0 15.0
Change in
shareholding - (0.5) - - - (0.5) (2.5) (3.0)
Balance at 31st
March 1,381.0 6,514.5 403.3 (1,764.6) 5.1 6,539.3 7,724.3 14,263.6
======== ======== ============ ============ ========= ======== ============= =========
2018
Balance at 1st
January 1,381.0 6,173.7 402.4 (1,521.5) (1.0) 6,434.6 7,028.4 13,463.0
Effect of
adoption of IFRS
16 - (1.8) - - - (1.8) (2.3) (4.1)
-------- -------- ------------ ------------ --------- -------- ------------- ---------
Balance as at 1st
January
as restated 1,381.0 6,171.9 402.4 (1,521.5) (1.0) 6,432.8 7,026.1 13,458.9
Total
comprehensive
income - 135.4 - (33.7) 5.6 107.3 193.6 300.9
Dividends paid to
non-controlling
interests - - - - - - (25.3) (25.3)
Issue of shares
to
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 6,310.5 402.4 (1,555.2) 4.6 6,543.3 7,214.6 13,757.9
======== ======== ============ ============ ========= ======== ============= =========
Jardine Cycle & Carriage Limited
Company Balance Sheet at 31st March 2019
------------------------------------------
At At
Note 31.3.2019 31.12.2018
US$m US$m
Non-current assets
Property, plant and equipment 34.5 34.4
Interests in subsidiaries 1,368.6 1,358.3
Interests in associates and
joint ventures 994.5 987.0
Non-current investment 169.2 167.6
----------
2,566.8 2,547.3
---------- -----------
Current assets
Current debtors 1,231.9 1,229.9
Bank balances and other liquid
funds 40.3 52.8
---------- -----------
1,272.2 1,282.7
---------- -----------
Total assets 3,839.0 3,830.0
---------- -----------
Non-current liabilities
Deferred tax liabilities 6.1 6.1
----------
6.1 6.1
---------- -----------
Current liabilities
Current creditors 79.8 83.8
Current borrowings 1,380.3 1,379.5
Current tax liabilities 1.7 1.7
----------
1,461.8 1,465.0
---------- -----------
Total liabilities 1,467.9 1,471.1
---------- -----------
Net assets 2,371.1 2,358.9
========== ===========
Equity
Share capital 6 1,381.0 1,381.0
Revenue reserve 7 666.8 672.6
Other reserves 8 323.3 305.3
----------
Total equity 2,371.1 2,358.9
========== ===========
Net asset value per share US$6.00 US$5.97
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the three months
ended 31st March 2019
----------------------------------------------------------------
2019 2018
US$m US$m
Loss for the period (5.8) (9.2)
Items that may be reclassified subsequently
to profit or loss:
------ --------
Translation difference
- gain arising during the period 18.0 47.1
Other comprehensive income for the
period 18.0 47.1
Total comprehensive income for the
period 12.2 37.9
====== ========
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the three months ended
31st March 2019
-------------------------------------------------------------------
Share Revenue Translation Total
capital reserve reserve equity
US$m US$m US$m US$m
2019
Balance at 1st January 1,381.0 672.6 305.3 2,358.9
Total comprehensive
income - (5.8) 18.0 12.2
Balance at 31st
March 1,381.0 666.8 323.3 2,371.1
========= ========= ============ ========
2018
Balance at 1st January 1,381.0 754.6 357.1 2,492.7
Total comprehensive
income - (9.2) 47.1 37.9
Balance at 31st
March 1,381.0 745.4 404.2 2,530.6
========= ========= ============ ========
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the three months ended
31st March 2019
-----------------------------------------------------------------
Restated
2019 2018
Note US$m US$m
Cash flows from operating activities
Cash generated from operations 10 605.8 529.9
Interest paid (59.7) (33.0)
Interest received 20.5 22.9
Other finance costs paid (28.1) (14.8)
Income tax paid (143.8) (93.9)
--------
(211.1) (118.8)
Net cash flows from operating activities 394.7 411.1
Cash flows from investing activities
------- --------
Sale of right-of-use assets - 12.0
Sale of property, plant and equipment 3.7 3.4
Sale of subsidiaries, net of cash
disposed 0.2 0.2
Sale of investments 91.9 77.3
Purchase of intangible assets (47.4) (18.8)
Purchase of right-of-use assets (25.5) (1.3)
Purchase of property, plant and equipment (281.0) (238.5)
Purchase of investment properties (2.8) (17.9)
Additions to bearer plants (10.6) (9.7)
Purchase of subsidiaries, net of
cash acquired - (85.5)
Purchase of shares in associates
and joint ventures (44.5) (99.8)
Purchase of investments (213.6) (456.0)
Dividends received from associates
and joint ventures (net) - 5.2
Net cash flows used in investing
activities (529.6) (829.4)
Cash flows from financing activities
------- --------
Drawdown of borrowings 1,226.7 1,155.3
Repayment of borrowings (733.6) (779.7)
Principal elements of lease payments (23.4) (15.9)
Changes in controlling interests
in subsidiaries (3.0) 2.9
Investment by non-controlling interests 15.0 17.3
Dividends paid to non-controlling
interests - (25.3)
Net cash flows from financing activities 481.7 354.6
Net change in cash and cash equivalents 346.8 (63.7)
Cash and cash equivalents at the
beginning of the year 1,881.5 2,639.8
Effect of exchange rate changes 27.1 (22.9)
Cash and cash equivalents at the
end of the period 2,255.4 2,553.2
======= ========
Jardine Cycle & Carriage Limited
Notes to the financial statements for the three months ended
31st March 2019
--------------------------------------------------------------
1 Basis of preparation
The financial statements are consistent with those set out in
the 2018 audited accounts which have been prepared in accordance
with Singapore Financial Reporting Standards (International)
("SFRS(I)") and International Financial Reporting Standards
("IFRS"). There have been no changes to the accounting policies
described in the 2018 audited accounts except for the adoption of
IFRS 16 Leases, which is effective from 1st January 2019.
The standard replaces IAS 17 Leases and related interpretations
and introduces a comprehensive model for the identification of
lease arrangements and accounting treatments for both lessors and
lessees. The distinction between operating and finance leases is
removed for lessee accounting, and is replaced by a model where a
right-of-use asset and a corresponding lease liability have to be
recognised on the balance sheet for all leases by lessees, except
for leases with a term of less than 12 months or with low value.
The accounting for lessors will not change significantly. IFRS 16
will affect primarily the accounting for the Group's operating
leases.
The adoption of IFRS 16 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 period 3 months ended 31st March
2018 and financial year ended 31st December 2018 by US$0.1m and
US$2.0m respectively.
As at 31 December 2018, the impact on the statement of financial
position is as follows:-
US$m
Net assets
Leasehold land use rights (597.7)
Property, plant and equipment (29.8)
Interest in associates and
joint ventures (0.7)
Right-of-use assets 753.0
Deferred tax assets 0.4
Debtors (29.5)
Lease liabilities (133.8)
Borrowings 31.1
--------
(7.0)
--------
Equity
Shareholders' funds (3.7)
Non-controlling interests (3.3)
--------
(7.0)
--------
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$1.3556 (2018: US$1=S$1.3659),
US$1= RM4.0813 (2018: US$1= RM4.1480), US$1= IDR14,244 (2018:
US$1=IDR14,481), US$1= VND23,202 (2018: US$1= VND23,175) and US$1=
THB31.7990 (2018: US$1=THB32.5180).
The exchange rates used for translating the results for the
period are US$1= S$1.3505 (2018: US$1=S$1.3164), US$1= RM4.0819
(2018: US$1= RM3.8968), US$1= IDR14,126 (2018: US$1= IDR13,625),
US$1=VND23,202 (2018: US$1= VND22,758) and US$1= THB31.5057 (2018:
US$1= THB31.3743).
2 Net operating costs and operating profit
Group
Restated
Three months ended 31st March 2019 2018 Change
US$m US$m %
Cost of sales (3,746.1) (3,740.0) -
Other operating income 168.9 85.9 97
Selling and distribution expenses (204.2) (207.4) -2
Administrative expenses (269.4) (251.1) 7
Other operating expenses (10.1) (96.5) -90
---------- ----------
Net operating costs (4,060.9) (4,209.1) -4
========== ==========
Operating profit is determined after
including:
Depreciation of property, plant and equipment(1) (185.0) (138.5) 34
Depreciation of bearer plants (6.8) (6.3) 8
Amortisation of intangible assets(1) (40.8) (16.7) 144
Amortisation of right-of-use assets (28.5) (22.3) 28
Fair value changes of :
* agricultural produce 2.7 0.1 nm
* other investments (2) 110.1 (83.3) nm
Profit/(loss) on disposal of:
* property, plant and equipment (0.9) 0.7 nm
* right-of-use assets 0.6 0.2 200
* investments 2.1 1.4 50
Loss on disposal/write-down of receivables
from collateral vehicles (14.1) (14.2) -1
Dividend and interest income from investments
(3) 11.0 19.8 -44
Write-down of stocks (3.1) (4.2) -26
Impairment of debtors (23.3) (36.0) -39
Net exchange gain/loss (4) (0.3) 23.4 nm
========== ==========
nm - not meaningful
(1) Increase in depreciation and amortisation cost mainly
relates to the property, plant and equipment and intangible assets
of subsidiary acquired in late 2018
(2) Fair value gain/(loss) relates mainly to equity investments
in Vinamilk and Toyota Motor Corporation
(3) Dividend income of US$10 million from Vinamilk was included
in 2018
(4) Net exchange gain in 2018 relates mainly to the impact of
stronger Singapore Dollar on monetary liabilities denominated in
USD
3 Tax
The provision for income tax is based on the statutory tax rates
of the respective countries in which the companies operate after
taking into account non-deductible expenses and group tax
relief.
4 Earnings per share
Group
Restated
Three months ended 31st March 2019 2018
US$m US$m
Basic and diluted earnings per share
Profit attributable to shareholders 312.4 135.3
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic earnings per share USc79 USc34
====== =========
Diluted earnings per share USc79 USc34
====== =========
Basic and diluted underlying earnings per
share
Underlying profit attributable to shareholders 201.3 218.9
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic earnings per share USc51 USc55
====== =========
Diluted earnings per share USc51 USc55
====== =========
As at 31st March 2019 and 2018, there were no dilutive potential
ordinary shares in issue.
A reconciliation of the profit attributable to shareholders and
underlying profit attributable to shareholders is as follows:
Group
Restated
Three months ended 31st March 2019 2018
US$m US$m
Profit attributable to shareholders 312.4 135.3
Less: Non-trading item (net of tax and non-controlling
interests)
------ ---------
Fair value changes of agriculture produce 0.8 0.1
Fair value changes of other investments 110.3 (83.7)
------ ---------
111.1 (83.6)
Underlying profit attributable to shareholders 201.3 218.9
====== =========
Non-trading items are separately identified to provide greater
understanding of the Group's underlying business performance. Items
classified as non-trading items include fair value gains or losses
on revaluation of investment properties, agricultural produce and
equity investments which are measured at fair value through profit
and loss; gains and losses arising from the sale of businesses,
investments and properties; impairment of non-depreciable
intangible assets and other investments; provisions for closure of
businesses; acquisition-related costs in business combinations; and
other credits and charges of a non-recurring nature that require
inclusion in order to provide additional insight into the Group's
underlying business performance.
5 Borrowings
Group
Restated
At At
31.3.2019 31.12.2018
US$m US$m
Long-term borrowings:
- secured 1,087.7 1,209.5
- unsecured 2,186.5 1,571.1
---------- -----------
3,274.2 2,780.6
---------- -----------
Current borrowings:
- secured 1,484.0 1,424.7
- unsecured 3,114.4 3,144.3
---------- -----------
4,598.4 4,569.0
---------- -----------
Total borrowings 7,872.6 7,349.6
========== ===========
Certain subsidiaries of the Group have pledged their assets in
order to obtain bank facilities from financial institutions. The
value of assets pledged was US$1,274.9 million (31st December 2018:
US$1,336.9 million).
6 Share capital
Group
2019 2018
US$m US$m
Three months ended 31st March
Issued and fully paid:
Balance at 1st January and 31st March
* 395,236,288 (2018: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the period
between 1st January 2019 and 31st March 2019. The Company did not
hold any treasury shares as at 31st March 2019 (31st March 2018:
Nil) and did not have any unissued shares under convertibles as at
31st March 2019 (31st March 2018: Nil).
There were no subsidiary holdings (as defined in the Listing
Manual of the SGX-ST) as at 31st March 2019 (31st March 2018:
Nil).
7 Revenue reserve
Group Company
Restated
2019 2018 2019 2018
US$m US$m US$m US$m
Movements:
Balance at 1st January 6,206.2 6,173.7 672.6 754.6
Effect of adoption of IFRS 16 (3.8) (1.8) - -
------- -------- ----- -----
Balance at 1st January as restated 6,202.4 6,171.9 672.6 754.6
Defined benefit pension plans
- remeasurements 0.1 (0.2) - -
Share of associates' and joint ventures'
remeasurements of
defined benefit pension plans, net
of tax 0.1 0.3 - -
Profit attributable to shareholders 312.4 135.3 (5.8) (9.2)
Change in shareholding (0.5) - - -
Others - 3.2 - -
Balance at 31st March 6,514.5 6,310.5 666.8 745.4
======= ======== ===== =====
8 Other reserves
Group Company
Restated
2019 2018 2019 2018
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 403.3 402.4 - -
Translation reserve (1,764.6) (1,555.2) 323.3 404.2
Fair value reserve 7.1 12.2 - -
Hedging reserve (5.3) (10.9) - -
Other reserve 3.3 3.3 - -
--------- --------- ----- -----
Balance at 31st March (1,356.2) (1,148.2) 323.3 404.2
========= ========= ===== =====
Movements:
Asset revaluation reserve
Balance at 1st January and 31st March 403.3 402.4 - -
========= ========= ===== =====
Translation reserve
Balance at 1st January (1,852.6) (1,521.5) 305.3 357.1
Effect of adoption of IFRS 16 0.1 - - -
--------- --------- ----- -----
Balance at 1st January as restated (1,852.5) (1,521.5) 305.3 357.1
Translation difference 87.9 (33.7) 18.0 47.1
--------- --------- ----- -----
Balance at 31st March (1,764.6) (1,555.2) 323.3 404.2
========= ========= ===== =====
Group Company
Restated
2019 2018 2019 2018
US$m US$m US$m US$m
Fair value reserve
Balance at 1st January 0.5 15.1 - -
Financial assets at FVOCI
- fair value changes 4.6 (1.6) - -
- deferred tax - 0.1 - -
- transfer to profit and loss - (0.7) - -
Share of associates' and joint ventures'
fair
value changes of financial assets
at FVOCI, net of tax 2.0 (0.7) - -
----- -------- ---- ----
Balance at 31st March 7.1 12.2 - -
===== ======== ==== ====
Hedging reserve
Balance at 1st January 5.8 (19.4) - -
Cash flow hedges
- fair value changes (8.5) (0.2) - -
- deferred tax 2.0 - - -
- transfer to profit and loss 0.4 0.2 - -
Share of associates' and joint ventures'
fair
value changes of cash flow hedges,
net of tax (5.0) 8.5 - -
Balance at 31st March (5.3) (10.9) - -
===== ======== ==== ====
Other reserve
Balance at 1st January and 31st March 3.3 3.3 - -
===== ======== ==== ====
9 Non-controlling interests
Group
Restated
2019 2018
US$m US$m
Balance at 1st January 7,345.4 7,028.4
Effect of adoption of IFRS 16 (3.3) (2.3)
------- --------
Balance at 1st January as restated 7,342.1 7,026.1
Financial assets at FVOCI
- fair value changes 5.0 (1.7)
- deferred tax - 0.1
- transfer to profit and loss - (0.7)
Share of associates' and joint ventures'
fair value changes of
Financial assets at FVOCI, net of tax 2.1 (0.8)
Cash flow hedges
- fair value changes (10.7) 0.1
- deferred tax 2.5 (0.1)
* transfer to profit and loss 0.4 0.1
Share of associates' and joint ventures'
fair value changes of cash
flow hedges, net of tax (11.2) 20.8
Defined benefit pension plans
- remeasurements 0.1 (0.8)
- deferred tax - 0.2
Share of associates' and joint ventures'
remeasurements
of defined benefit pension plans, net of
tax (0.3) 0.3
Translation difference 99.6 (101.0)
Profit for the period 282.8 277.1
Dividends declared/paid (0.6) (25.3)
Issue of shares 15.0 17.3
Change in shareholding (2.5) 2.9
Balance at 31st March 7,724.3 7,214.6
======= ========
10 Cash flows from operating activities
Group
Restated
2019 2018
US$m US$m
Profit before tax 714.6 533.2
Adjustments for:
------- --------
Financing income (22.5) (22.4)
Financing charges (1) 87.2 49.4
Share of associates' and joint ventures' results
after tax (124.0) (126.1)
Depreciation of property, plant, equipment 185.0 138.5
Depreciation of bearer plants 6.8 6.3
Amortisation of right-of-use assets 28.5 22.3
Amortisation of intangible assets 40.8 16.7
Fair value (gain)/loss of:
- agricultural produce growing on bearer plants (2.7) (0.1)
- other investments (110.1) 83.3
Impairment of debtors 23.3 36.0
(Profit)/loss on disposal of:
- right-of-use assets (0.6) (0.2)
- property, plant and equipment 0.9 (0.7)
- investments (2.1) (1.4)
Loss on disposal/write-down of receivables
from collateral vehicles 14.1 14.2
Amortisation of borrowing costs for financial
services companies 2.4 2.6
Write-down of stocks 3.1 4.2
Changes in provisions 9.2 9.7
Foreign exchange gain (0.9) (20.6)
138.4 211.7
Operating profit before working capital changes 853.0 744.9
Changes in working capital:
------- --------
Properties for sale 6.0 -
Stocks 8.5 64.9
Concession rights (26.7) (1.6)
Financing debtors (134.0) (4.2)
Debtors (2) (38.9) (348.6)
Creditors (69.0) 67.7
Pensions 6.9 6.8
------- --------
(247.2) (215.0)
------- --------
Cash flows from operating activities 605.8 529.9
======= ========
(1) Increase in financing charges mainly due to higher level of
net debt
(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$m
Three months ended 31st March
2019
Hongkong Land Ltd
- management support services - 0.1
- 0.1
================================== =========================
12 Additional information
Group
Restated
Three months ended 31st March 2019 2018 Change
US$m US$m %
Astra International
Automotive 62.4 72.0 -13
Financial services 49.8 39.0 28
Heavy equipment, mining, construction
& energy 64.1 56.2 14
Agribusiness 0.3 10.4 -97
Infrastructure & logistics 0.6 (0.8) nm
Information technology 0.7 0.9 -22
Property 1.4 - nm
------ ---------
179.3 177.7 1
---------
Direct Motor Interests
Singapore 13.5 12.7 6
Malaysia (0.6) (1.9) -68
Indonesia (Tunas Ridean) 5.5 4.9 12
Myanmar (1.8) (0.6) 200
Vietnam
- automotive 12.3 12.1 2
Less: central overheads (0.8) (0.6) 33
28.1 26.6 6
Other Strategic Interests
Vinamilk - 9.6 -100
Non-Astra Interests 28.1 36.2 -22
------ ---------
Corporate costs
Central overheads (5.6) (5.1) 10
Net financing charges (9.6) (6.5) 48
Exchange differences 9.1 16.6 45
(6.1) 5.0 nm
------ ---------
Underlying profit attributable to shareholders 201.3 218.9 -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 2019 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 2019 can be
accessed through the internet at www.jcclgroup.com.
Corporate Profile
Jardine Cycle & Carriage is a leading Singapore-listed
company with a strong presence in Southeast Asia through its
strategic interests in market-leading companies across the region.
Together with its subsidiaries and associates, JC&C employs
more than 250,000 people across Southeast Asia.
The Group has a majority interest in Astra, a diversified group
in Indonesia, which is also the largest independent automotive
group in Southeast Asia.
JC&C also has an established presence in the automotive
industry beyond Astra, through its Direct Motor Interests operating
in Singapore, Malaysia and Myanmar under the Cycle & Carriage
brand, as well as through Tunas Ridean in Indonesia and Truong Hai
Auto Corporation in Vietnam.
The diversified businesses of the Group include Other Strategic
Interests in Siam City Cement, Refrigeration Electrical Engineering
Corporation and Vinamilk.
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
MSCUVSKRKSASURR
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