Jardine Cycle & Carriage : Astra International 2019 Third Quarter Financial Statements

General Announcement::Astra's 2019 3rd Quarter Financial Statements

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GENERAL ANNOUNCEMENT::ASTRA'S 2019 3RD QUARTER FINANCIAL STATEMENTS

Issuer & Securities

Issuer/ Manager

JARDINE CYCLE & CARRIAGE LIMITED

Securities

JARDINE CYCLE & CARRIAGE LTD - SG1B51001017 - C07

Stapled Security

No

Announcement Details

Announcement Title

General Announcement

Date &Time of Broadcast

31-Oct-2019 17:50:03

Status

New

Announcement Sub Title

Astra's 2019 3rd Quarter Financial Statements

Announcement Reference

SG191031OTHRKCU8

Submitted By (Co./ Ind. Name)

Jeffery Tan Eng Heong

Designation

Company Secretary

Description (Please provide a detailed description of the event in the box below)

We attach for your information a press release announced today in Jakarta by our subsidiary, PT Astra International Tbk.

Attachments

Astra_2019_09_30%20Results%20Release.pdf

Total size =272K MB

https://links.sgx.com/1.0.0/corporate-announcements/JMTYU9YEMEJ8A313/3f8968... 31/10/2019

PRESS RELEASE

31st October 2019

PT ASTRA INTERNATIONAL TBK

2019 THIRD QUARTER FINANCIAL STATEMENTS

Highlights

• Net earnings per share down 7% at Rp392
• Motorcycle sales up 5% but car sales down 7%, both with increased market shares
• Higher earnings contribution from financial services and gold mining operations
• Heavy equipment, coal mining and agribusiness activities impacted by lower commodity prices

"While the Group's full year result is expected to continue to benefit from an improved performance from financial services and the contribution from the newly acquired gold mine, concerns remain over relatively weak domestic consumption and low commodity prices."

Prijono Sugiarto

President Director

Group Results

	For the period ended 30th September
	2019	2018		Change
	Rp bn	Rp bn		%
Net revenue	177,044	174,881		1
Net income*	15,868	17,073		(7)
	Rp	Rp
Net earnings per share	392	422		(7)
	As at 30th	As at 31st		Change
	September 2019	December 2018
		%
	Rp bn	Rp bn
Shareholders' funds**	142,885	136,947		4
	Rp	Rp
Net asset value per share**	3,529	3,383		4

• 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 nine months ended 30th September 2019 and 2018 as well as the financial position as at 30th September 2019 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2018 has been prepared in accordance with Indonesian Financial Accounting Standards and audited in accordance with the auditing standards established by the Indonesian Institute of Certified Public Accountants.

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PRESIDENT DIRECTOR'S STATEMENT

Overview

The Group's net earnings were 7% lower during the first nine months of 2019, compared with the same period last year, mainly due to lower contributions from its automotive and agribusiness divisions, which more than offset a higher contribution from its financial services division.

Performance

The Group's consolidated net revenue for the period increased by 1% to Rp177.0 trillion, mainly due to higher revenue from its heavy equipment, mining, construction and energy, financial services, and infrastructure and logistics divisions, which more than offset declines in the automotive and agribusiness divisions.

The Group's net income was Rp15.9 trillion, 7% lower than the same period in 2018. The net asset value per share at 30th September 2019 was Rp3,529, 4% higher than at the end of 2018.

Net debt, excluding the Group's financial services subsidiaries, was Rp17.7 trillion at 30th September 2019, compared with Rp13.0 trillion at the end of 2018, mainly due to the Group's new toll road and Gojek investments, as well as capital expenditure in its mining contracting operation. The Group's financial services subsidiaries had net debt of Rp47.1 trillion at 30th September 2019, compared with Rp47.7 trillion at the end of 2018.

Business Activities

Net income attributable to shareholders by business segment was as follows:

	Net Income Attributable to Astra International
	For the period ended 30th September
	2019	2018	Change
	Rp bn	Rp bn	%
Automotive	6,060	7,013	(14)
Financial Services	4,306	3,452	25
Heavy Equipment, Mining, Construction and Energy	5,140	5,428	(5)
Agribusiness	89	896	(90)
Infrastructure and Logistics	155	112	38
Information Technology	77	106	(28)
Property	41	66	(38)
Attributable Net Income	15,868	17,073	(7)

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Automotive

Net income from the Group's automotive division fell by 14% to Rp6.1 trillion, mainly due to lower car sales volumes, increased manufacturing costs, and the effect of foreign exchange translation. Highlights were as follows:

• Astra's car sales were 7% lower at 396,000 units. The overall wholesale market declined by 12% to 754,000 units (source: Gaikindo). Astra's market share increased from 50% to 53%. 14 new models and 7 revamped models were launched during the period.
• The wholesale market for motorcycles increased by 4% to 4.9 million units. Astra
  Honda Motor's sales increased by 5% to 3.7 million units, with its market share slightly up at 75% (source: Ministry of Industry). 6 new models and 19 revamped models were launched during the period.
• The Group's 80%-owned components business, Astra Otoparts, reported a 24% increase in net income at Rp512 billion, mainly due to higher revenue from the replacement market and lower production costs.

Financial Services

Net income from the Group's financial services division increased by 25% to Rp4.3 trillion, mainly due to a larger loan portfolio and an improvement in non-performing loans. Highlights were as follows:

• The Group's consumer finance businesses saw a 7% increase in the amount financed to Rp64.2 trillion. The net income contribution from the Group's car-focused finance companies increased by 31% to Rp1.1 trillion, mainly due to lower non- performing loan losses. The net income contribution from the Group's motorcycle- focused business, Federal International Finance, increased by 8% to Rp1.9 trillion, mainly due to a larger loan portfolio.
• The Group's heavy equipment-focused finance operations saw a 17% decrease in the amounts financed to Rp3.1 trillion. The net income contribution from this segment grew 27% to Rp76 billion, with lower loan provisions.
• 44.6%-ownedPermata Bank reported a 121% increase in net income to Rp1.1 trillion, due to improved revenue and lower loan impairment levels, attributable to improved loan quality and recoveries from non-performing loans. The bank's gross and net non-performing loan ratios improved to 3.3% and 1.2%, respectively, compared to 4.4% and 1.7% at the end of 2018.
• General insurance company, Asuransi Astra Buana, reported a 6% growth in net income at Rp809 billion, due to increased investment income.
• The Group's life insurance joint venture, Astra Aviva Life, acquired more than
  723,000 new individual life customers and 140,000 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 decreased by 5% to Rp5.1 trillion, principally due to foreign exchange translation, where a significant gain was recorded in the prior year. Excluding foreign exchange translation, net income would have been slightly higher, mainly due to the contribution from the new gold mining operation and improved mining contracting volume, partly offset by lower heavy

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equipment sales, which were impacted by lower coal prices, and lower earnings from the general contracting business. Highlights were as follows:

• 59.5%-ownedUnited Tractors reported a 5% decrease in net income to Rp8.6 trillion.
• Komatsu heavy equipment sales fell 30% to 2,568 units, while parts and service revenues were stable.
• Mining contractor Pamapersada Nusantara recorded a 5% higher overburden removal volume at 750 million bank cubic metres, and a 7% higher coal production at 96 million tonnes.
• United Tractors' coal mining subsidiaries achieved 11% higher coal sales at 6.4 million tonnes, including 0.8 million tonnes of coking coal, but were affected by lower coal prices.
• Agincourt Resources, 95%-owned by United Tractors, achieved gold sales of 306,000 oz.
• General contractor Acset Indonusa, 50.1%-owned by United Tractors, reported a net loss of Rp752 billion, compared to a net income of Rp91 billion in the first nine months of 2018, mainly due to increased project and funding costs for several ongoing contracts.

Agribusiness

Net income from the Group's agribusiness division was down 90% at Rp89 billion. Highlights were as follows:

• 79.7%-ownedAstra Agro Lestari reported a 90% decline in net income to Rp111 billion, primarily due to a fall in crude palm oil prices.
• Average crude palm oil prices fell 16% to Rp6,449/kg.
• Crude palm oil and derivatives sales increased by 10% to 1.7 million tonnes.

Infrastructure and Logistics

Net income from the Group's infrastructure and logistics division increased by 38% to Rp155 billion, mainly due to improved revenue from its operational toll roads. Highlights were as follows:

• The Group has interests in 339km of operational toll roads along the Trans-Java network and a further 11km currently under construction in the Jakarta Outer Ring Road.
• Toll revenue increased due to a 22% higher traffic volume in the Group's operational concessions, following the completion of the Trans-Java network in December 2018.
• Serasi Autoraya's net income decreased by 23% to Rp147 billion, due to a reduction in vehicles under lease and lower used car sales.

Information Technology

Net income from the Group's information technology division was 28% lower at Rp77 billion.

76.9%-owned Astra Graphia reported a 28% lower net income at Rp100 billion, due to lower operating profit margins, despite increased revenue from its document solution and office service solution businesses.

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