Jardine Strategic : Astra International - Final Results

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Jardine Strategic Hldgs Ltd - JDS Astra International - Final Results Released 11:05 27-Feb-2020

RNS Number : 2235E

Jardine Strategic Hldgs Ltd

27 February 2020

To: Business Editor	27th February 2020
	For immediate release

PT Astra International Tbk

2019 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 Jonathan Lloyd	(852) 2843 8223
Brunswick Group Limited Ben Fry	(65) 9017 9886

27th February2020

PT ASTRA INTERNATIONAL TBK (the Company)

2019 FULL YEARFINANCIAL STATEMENTS

Highlights

●	Net earnings per share stable at Rp536
●	Motorcycle sales up 3% but car sales down 8%, both with increased market shares
●	Higher earnings contribution from financial services and gold mining operation
●	Heavy equipment, coal mining and agribusiness activities impacted by lower commodity prices

'The Group's full year result in 2019 was impacted by relatively weak domestic consumption and low commodity prices, but benefited from an improved performance from financial services and the strong contribution from the Group's newly acquired gold mine. The outlook for 2020 remains challenging given the uncertain external macro environment, competition in the car market and weak commodity prices. Nevertheless, we are encouraged that the Group is well positioned to benefit from any improvement in economic conditions.'

Prijono Sugiarto

President Director

Group Results

	For the years ended 31st December
2019 Rp bn	2018 Rp bn	Change %
Net revenue	237,166	239,205	(1)
Net income*	21,707	21,673	0
	Rp	Rp
Net earnings per share	536	535	0
	As at 31st December2019 Rp bn	As at 31st December2018 Rp bn	Change %
Shareholders' funds**	147,847	136,947	8
	Rp	Rp
Net asset value per share**	3,652	3,383	8

* 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 yearended 31st December2019 and 2018 as well as the financial position as at 31st December2019 and 2018 have 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.

PRESIDENT DIRECTOR'S STATEMENT

Overview

The Group's net earnings were stable, with lower contributions from its agribusiness and automotive divisions offsetting a higher contribution from its financial services division and gold mining operation.

Performance

The Group's consolidated net revenue for the year decreased by 1% to Rp237.2 trillion, mainly due to lower revenue from its automotive and agribusiness divisions, which more than offset higherrevenue from its financial services and infrastructure and logistics divisions.

The Group's net income was Rp21.7 trillion, a stable performance compared to the previous year. The net asset value per share at 31st December2019 was Rp3,652, 8% higher than at the end of 2018.

Net debt, excluding the Group's financial services subsidiaries, was Rp22.2 trillion at 31st December 2019, compared with Rp13.0 trillion at the end of 2018,mainly due to the Group's additional toll road and Gojek investments, as well as capital expenditure in its mining contracting business. The Group's financial services subsidiaries had net debt totalling Rp45.8trillion at 31st December 2019, compared with Rp47.7 trillion at the end of 2018.

A final dividend of Rp157 per share (2018: Rp154 per share) will be proposed at the Annual General Meeting of Shareholders of the Company to be held in April 2020. The proposed final dividend, together with the interim dividend of Rp57 per share (2018: Rp60 per share) which had been distributed in October 2019, will bring the total dividend for the year 2019 to Rp214 per share (2018: Rp214 per share).

Business Activities

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

	Net Income Attributable to Astra International
For the years ended 31st December
2019 Rp bn	2018 Rp bn	Change %
Automotive	8,396	8,518	(1)
Financial Services	5,864	4,815	22
Heavy Equipment, Mining, Construction and Energy	6,711	6,630	1
Agribusiness	168	1,146	(85)
Infrastructure and Logistics	292	196	49
Information Technology	193	208	(7)
Property	83	160	(48)
Attributable Net Income	21,707	21,673	0

Automotive

Net income from the Group's automotive division fell by 1% to Rp8.4trillion, mainly due to lower car sales volumes and increased manufacturing costs, partly offset by higher motorcycle sales volumes. Highlights were as follows:

●	Astra's car sales were 8% lower at 536,000 units. The overall wholesale market declined by 11% to 1.03 million units in 2019 (source: Gaikindo). Astra's market share increased from 51% to 52%. 15 new models and 11 revamped models were launched during the year.
●	The wholesale market for motorcycles increased by 2% to 6.5million units in the year (source: Ministry of Industry). Astra Honda Motor's sales increased by 3% to 4.9 million units with a market share 76%, slightly increased compared to last year. 6 new models and 21 revamped models were launched during the year.
●	The Group's 80%-owned components business, Astra Otoparts, reported a 21% increase in net income at Rp740billion, mainly due to higher revenue from the replacement market and lower production costs.

Financial Services

Net income from the Group's financial services division increasedby 22% to Rp5.9 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 an 8% increase in the amount financed to Rp87 trillion. The net income contribution from the Group's car-focused finance companies increased by 29% to Rp1.5 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 11% to Rp2.6 trillion, mainly due to a larger loan portfolio.
●	The Group's heavy equipment-focused finance operations saw an 18% decrease in the amounts financed to Rp4.3 trillion. The net income contribution from this business grew, however, by 14% to Rp98 billion, as a result of lower loan loss provisions.
●	44.6%-owned Permata Bank reported a 66% increase in net income to Rp1.5 trillion, due to improved revenue and lower loan impairment levels, attributable to improved loan quality and better levels of recovery from non-performing loans. The bank's gross and net non-performing loan ratios improved to 2.8% and 1.3%, respectively, compared to 4.4% and 1.7% at the end of 2018.
●	In December 2019, the Group announced the agreement to sell its 44.6% stake in Permata Bank by entering a Conditional Share Purchase Agreement with Bangkok Bank Public Company Limited. Completion of the transaction is subject to certain conditions including approvals by the shareholders of Bangkok Bank and the receipt of the applicable regulatory approvals in Indonesia and Thailand, which it is hoped will all be achieved by the end of 2020.
●	General insurance company, Asuransi Astra Buana, reported 4% growth in net income to Rp1.1 trillion, due to increased investment income.
●	The Group's life insurance joint venture, Astra Aviva Life, acquired more than 1,203,000new individual life customers and 188,000 new participants for its corporate employee benefits programmes in 2019.

Heavy Equipment, Mining, Construction and Energy

Net income from the Group's heavy equipment, mining, construction and energy division increased by 1% to Rp6.7trillion, mainly due to the contribution from the new gold mining operation, offset by the impact of lower heavy equipment sales and a loss incurred in the general contracting business.Highlights were as follows:

●	59.5%-owned United Tractors reported a 2% increase in net income to Rp11.3 trillion.
●	Komatsu heavy equipment sales fell by 40% to 2,926 units, while parts and service revenues were also lower.
●	Mining contractor Pamapersada Nusantara recorded a 1% higher overburden removal volume at 989 million bank cubic metres, and a 5% higher coal production at 131 million tonnes.
●	United Tractors' coal mining subsidiaries achieved 21% higher coal sales at 8.5 million tonnes, including 1.2million tonnes of coking coal, but they were affected by lower coal prices.
●	Agincourt Resources, 95%-owned by United Tractors, achieved gold sales of 410,000 oz.
●	General contractor Acset Indonusa, 50.1%-owned by United Tractors, reported a net loss of Rp1.1 trillion, compared to a net income of Rp18 billion in the previous year,mainly due to increased project and funding costs for several ongoing contracts.

Agribusiness

Net income from the Group's agribusiness division was down 85% at Rp168 billion. Highlights were as follows:

●	79.7%-owned Astra Agro Lestari reported an 85% decline in net income to Rp211 billion, primarily due to lower crude palm oil prices.
●	Average crude palm oil prices fell 8% to Rp6,689/kg.
●	Crude palm oil and derivatives sales increased by 3% to 2.3 million tonnes.

Infrastructure and Logistics

Net income from the Group's infrastructure and logistics division increased by 49% to Rp292billion,mainly due to improved revenue from its operational toll roads. Highlights were as follows:

●	The Group has interests in 350km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road.
●	Toll revenue increased due to 22% higher traffic volume in the Group's operational concessions, following the completion of the Trans-Java network in December 2018 and Kunciran-Serpong toll road in December 2019.
●	Astra Tol Nusantara acquired 44.5% stake in Jasamarga Surabaya Mojokerto, the concession holder of the 36km Surabaya-Mojokerto toll road, in May 2019.
●	In November 2019, Astra Tol Nusantara completed the acquisition of an additional 10% stake in Lintas Marga Sedaya, operator of the 117km Cikopo-Palimanan toll road, bringing its ownership to 55%.
●	Serasi Autoraya's net income decreased by 17% to Rp250 billion, due to lower used car sales and a decline in its car leasing business.
●	As part of the collaboration between the Group and Gojek, a joint venture company was formed to provide fleet management support for GoCar, a ride-hailing online transportation system in Indonesia.

Information Technology

Net income from the Group's information technology division was 7% lower at Rp193 billion.

76.9%-owned Astra Graphia reported 7% lower net income at Rp251billion, due to lower operating profit margins, despite increased revenue from its document solution and office service solution businesses.

Property

Net income from the Group's property division was 48% lower at Rp83billion, mainly due to reduced development earnings recognised from Anandamaya Residencesas a result of the completion of its construction in 2018.

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.

Other Corporate Action

During the year a further investment of US$100 million was made in Gojek, bringing Astra's total investment to US$250 million.

Prospects

The Group's full year result in 2019 was impacted by relatively weak domestic consumption and low commodity prices, but benefited from an improved performance from financial services and the strong contribution from the Group's newly acquired gold mine. The outlook for 2020 remains challenging given the uncertain external macro environment, competition in the car market and weak commodity prices. Nevertheless, we are encouraged that the Group is well positioned to benefit from any improvement in economic conditions.

Prijono Sugiarto

President Director

27th February2020

For further information, please contact:

PT Astra International Tbk

Pongki Pamungkas, Chief of Corporate Affairs
Tel: +62 - 21 - 5084 3888

-end-

About Astra

PT Astra International Tbk was established in 1957 in Jakarta as a general trading company under the name Astra International Inc. In 1990, for the purpose of the company's initial public offering (IPO), the name of the company changed to PT Astra International Tbk, followed by listing its shares on the Indonesia Stock Exchange under the ticker code ASII.

Astra has developed its business by implementing a business model based on synergies and diversification within seven business segments, consisting of: 1) Automotive, 2) Financial Services, 3) Heavy Equipment, Mining, Construction & Energy, 4) Agribusiness, 5) Infrastructure and Logistics, 6) Information Technology and 7) Property.

Astra conducts business operations in all parts of Indonesia under the management of more than 235 subsidiaries, joint ventures and associates companies, and was supported by more than 226,000 employees, as of December 2019.

As one of the largest national business groups today, Astra has built a strong reputation through offering a range of quality products and services, taking into account the implementation of good corporate governance and environmental governance. Astra always aspires to be the pride of the nation that participates in efforts to improve the welfare of the Indonesian people.

Therefore, Astra's business activities strive to apply a balanced mix in the commercial aspects of business and non-business contributions through 9 foundations and a variety of sustainable social responsibility programmes Astra Untuk Indonesia Sehat, Astra Untuk Indonesia Cerdas, Astra Untuk Indonesia Hijau and Astra Untuk Indonesia Kreatif.

Astra initiated the Semangat Astra Terpadu Untuk (SATU) Indonesia Awards programme, which has entered a decade this year, and has given recognition awards to 305 young Indonesians, consisting of 59 national level recipients and 246 provincial level recipients in the fields of Health, Education, the Environment, Entrepreneurship and Technology, which are integrated with Astra's wide range of community activities through 87 Kampung Berseri Astra and 645 Desa Sejahtera Astra initiated in 34 provinces throughout Indonesia.

For further information, please visitwww.astra.co.id&www.satu-indonesia.com, and follow Astra through Instagram (@SATU_Indonesia), Youtube (SATU Indonesia), Facebook (Semangat Astra Terpadu) and Twitter (@SATU_Indonesia).

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END

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Astra International - Final Results - RNS