Jardine Cycle & Carriage : JC&C 2022 Half Year Financial Statements and Dividend Announcement

7/28/22, 6:02 PM

Financial Statements and Related Announcement::Half Yearly Results

FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT::HALF YEARLY RESULTS

Issuer & Securities

Issuer/ Manager

JARDINE CYCLE & CARRIAGE LIMITED

Securities

JARDINE CYCLE & CARRIAGE LTD - SG1B51001017 - C07

Stapled Security

No

Announcement Details

Announcement Title

Financial Statements and Related Announcement

Date &Time of Broadcast

28-Jul-2022 17:58:45

Status

New

Announcement Sub Title

Half Yearly Results

Announcement Reference

SG220728OTHR9QKS

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 - Refer to the Online help for the format)

Please see attachment.

Additional Details

For Financial Period Ended

30/06/2022

Attachments

JCC_Jun 2022_V4.2Final.pdf

Total size =695K MB

https://links.sgx.com/1.0.0/corporate-announcements/PTP24CCLJUDX59F5/ee7328f37f9dd8ad038b7e9feac7bc7c1201d2b07059cebcadc044180960… 1/1

28th July 2022

Jardine Cycle & Carriage Limited

239 Alexandra Road

Singapore 159930

Tel [phone] Fax [phone] [e-mail]

www.jcclgroup.com

JARDINE CYCLE & CARRIAGE LIMITED

2022 HALF-YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

• Underlying profit 51% higher at US$522 million
• Higher earnings principally from Astra and THACO
• Interim dividend per share increased from US¢18 to US¢28, reflecting the Board's decision to pay out a higher share of the full-year dividend as interim

"The Group performed strongly in the first half of 2022 and achieved a record half-year underlying profit, mainly due to higher contributions from Astra and THACO. Astra's performance, in particular, benefited from improved economic conditions and higher commodity prices. The Group expects results in the second half of the year to remain strong, although it remains cautious as a result of global economic challenges, ongoing geopolitical developments and the continuing impact of the pandemic."

Ben Keswick, Chairman

Group Results

	Six months ended 30th June
	2022	2021	Change	2022
	US$m	US$m	%	S$m
Revenue	10,681	8,287	29%	14,618
Underlying profit attributable to
shareholders *	522	346	51%	715
Non-trading items^	(35)	(120)	-71%	(48)
Profit attributable to shareholders	487	226	115%	667
	US¢	US¢		S¢
Underlying earnings per share *	132	88	51%	181
Earnings per share	123	57	115%	169
Interim dividend per share	28	18	56%	38
	At	At		At
	30.6.2022	31.12.2021		30.6.2022
	US$m	US$m		S$m
Shareholders' funds	7,351	7,368	-	10,233
	US$	US$		S$
Net asset value per share	18.60	18.64	-	25.89

The exchange rate of US$1=S$1.39 (31st December 2021: US$1=S$1.35) was used for translating assets and liabilities at the balance sheet date, and

US$1=S$1.37 (30th June 2021: US$1=S$1.33) was used for translating the results for the period. The financial results for the six months ended 30th June 2022 and 30th June 2021 have been prepared in accordance with International Financial Reporting Standards and have not been audited or reviewed by the auditors.

• 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 6 to the condensed financial statements. Management considers this to be a key performance

measurement that enhances the understanding of the Group's underlying business performances.

• Included in 'non-trading items' are unrealised gains/losses arising from the revaluation of the Group's equity investments.

nm not meaningful

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CHAIRMAN'S STATEMENT

OVERVIEW

Jardine Cycle & Carriage ("JC&C" or "the Group") delivered strong results in the first half of 2022, compared to the same period in 2021, mainly due to higher contributions from Astra and THACO.

Astra contributed US$465 million to the Group's underlying profit, 58% higher than the same period last year, driven primarily by improved economic conditions and higher commodity prices.

THACO contributed US$52 million, 43% higher than the same period last year, due to a strong automotive performance.

Direct Motor Interests contributed US$28 million, an increase of 20% compared to the same period last year. Lower profits from the Singapore operations were offset by an improved performance by Tunas Ridean in Indonesia.

Other Strategic Interests contributed US$34 million, 13% higher than the same period last year, mainly due to higher profits from Siam City Cement and REE.

Exchange losses of US$35 million from the translation of foreign currency loans at JC&C parent company were higher than in the same period last year. Other corporate costs saw an increase mainly due to higher net financing charges.

The Group's underlying profit attributable to shareholders increased by 51% to US$522 million. After accounting for non-trading items, which mainly comprised unrealised gains and losses arising from the revaluation of the Group's equity investments, the Group's profit attributable to shareholders was US$487 million, compared to US$226 million in the same period last year.

The Group's consolidated net cash position, excluding the net borrowings from Astra's financial services subsidiaries, was US$884 million at the end of June 2022, compared to US$770 million at the end of 2021. Net debt within Astra's financial services subsidiaries was at US$2.4 billion. JC&C parent company's net debt was US$1.5 billion at the end of June 2022.

During the first half of the year, JC&C slightly increased its interest in Cycle & Carriage Bintang from 89.0% to 89.99%, through on-market purchases. In July, it announced a general offer to acquire the remaining shares in the company. JC&C also increased its interest in REE from 31.0% to 32.9%.

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GROUP REVIEW

The contributions to JC&C's underlying profit attributable to shareholders by business segment were as follows:

Contribution to JC&C's underlying profit

Six months ended 30th June

	2022	2021	Change
Business segments	US$m	US$m	%
Astra	465	293	58%
THACO	52	37	43%
Direct Motor Interests	28	24	20%
Other Strategic Interests	34	29	13%
Corporate Costs - exchange losses	(35)	(21)	64%
Corporate Costs - others	(22)	(16)	40%
Underlying profit attributable to
shareholders	522	346	51%

Astra

Astra contributed US$465 million to JC&C's underlying profit, 58% higher than the same period last year. Excluding the unrealised gain from the revaluation of its equity investments, Astra reported a net profit equivalent to US$998 million under Indonesian accounting standards, with stronger performances from all its businesses, and particularly its automotive, financial services, heavy equipment and mining operations.

Automotive

Net income increased by 29% to US$295 million, reflecting higher sales volumes. Key points are as follows:

• The wholesale car market increased by 21% in the first half to 475,000 units. Astra's car sales were 23% higher at 259,000 units, with its market share increasing from 53% to 54%.
• The wholesale market for motorcycles decreased by 8% in the first half to 2.2 million units.
  Astra's Honda motorcycle sales were 13% down to 1.6 million units due to production constraints caused by semiconductor supply issues, which led to a decline in market share from 77% to 73%.
• Components business, Astra Otoparts, reported a 62% increase in net profit to US$30 million, mainly due to higher revenues from the original equipment manufacturer and replacement market segments.

Financial Services

Net income increased by 36% to US$200 million due to higher contributions from the consumer finance businesses. Key points are as follows:

• Consumer finance businesses saw an 18% increase in the amounts financed to US$3.3 billion. The net income contribution from the car-focused finance companies increased by 47% to US$57 million due to larger loan portfolios, and the contribution from the motorcycle- focused financing business increased by 60% to US$103 million, mainly due to lower levels of non-performing loans.
• General insurance company, Asuransi Astra Buana, reported a 6% increase in net income to US$44 million, due to higher underwriting income and investment income.

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Page 4

Heavy Equipment, Mining, Construction and Energy

Net income increased significantly from US$187 million to US$427 million, mainly due to improved profits from heavy equipment sales, mining contracting and coal mining, all of which benefited from higher coal prices. However, coal operating volumes were adversely impacted by the temporary coal export ban. Key points are as follows:

• Komatsu heavy equipment sales increased from 1,361 units to 2,900 units, while revenue from its parts and service business was also higher.
• Mining contracting operations reported a 13% decrease in coal production at 50 million tonnes but saw a 7% increase in overburden removal volume at 437 million bank cubic metres.
• Coal mining subsidiaries reported a 8% decline in coal sales at 5.8 million tonnes, including 1.3 million tonnes of metallurgical coal. However, this volume impact was more than offset by higher coal selling prices.
• Agincourt Resources saw 18% lower gold sales at 144,000 oz.
• General contractor, Acset Indonusa, reported a net loss of US$8 million in the period, compared to a net loss of US$11 million in the same period last year. The company continued to be impacted by the slowdown of several ongoing projects and reduced construction project opportunities during the pandemic.

Agribusiness

Net income increased by 25% to US$44 million, mainly due to improved crude palm oil prices which offset lower sales resulting from the temporary export ban on palm oil.

Infrastructure and Logistics

Astra's infrastructure and logistics division reported an increase in net profit from US$6 million to US$24 million, mainly due to improved performance in its toll road businesses, which saw a 34% increase in toll road revenues. Astra has 396km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road.

THACO

THACO contributed a US$52 million profit, 43% up compared to the same period last year, mainly due to a strong automotive performance supported by a temporary reduction in registration fees for locally-assembled vehicles. THACO's automotive unit sales were up 54%, with market share increasing from 22% to 29%, while margins also increased due to an improved sales mix.

Direct Motor Interests

The Group's Direct Motor Interests contributed a US$28 million profit, 20% up compared to the same period last year. Key points are as follows:

• Cycle & Carriage Singapore's contribution was 41% lower at US$11 million. Passenger car sales fell 25% to 3,144 units as sales volume was adversely impacted by the tightened COE cycle and stock supply shortages. Its market share, however, increased from 16% to 19%.
• In Indonesia, Tunas Ridean contributed US$15 million, compared to US$7 million in the same period last year, supported by improved profitability across its automotive and financial services businesses.
• Cycle & Carriage Bintang in Malaysia contributed a profit of US$3 million, compared to US$0.2 million in the same period last year. Despite challenging trading conditions, its financial performance benefited from improved business volume due to the sales tax reduction and cost savings initiatives.

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