REG - Jardine Cycle&Carrge Jardine Matheson Hdg - 2021 Financial Statements & Dividend Announcement
28/02/2022 11:00
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RNS Number : 0268D Jardine Cycle & Carriage Limited 28 February 2022
To: Business
Editor
28th February 2022
For immediate release
Jardine Cycle & Carriage Limited
2021 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
Joey Ho (65) 9765 0717
Brunswick Group Limited
Ben Fry (65) 9017 9886
28th February
2022
JARDINE CYCLE & CARRIAGE LIMITED
2021 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT
Highlights
· Underlying profit of US$786 million, 83% higher than 2020, and 9% lower than
2019
· Higher contributions across the JC&C portfolio
· Proposed final dividend of US¢62 per share, total dividend of US¢80 per
share for the year, 86% higher than 2020
"Jardine Cycle & Carriage achieved an overall satisfactory result in 2021,
with significant recovery across its portfolio compared to 2020. The Group's
underlying profit, however, remained lower than 2019, before the start of the
pandemic.
The pandemic remains a significant risk to performance in 2022, but the Group
is optimistic about the long-term economic prospects of Southeast Asia, and is
well placed to benefit from its growth opportunities."
Ben Keswick, Chairman
Group Results
Year ended 31st December
2021 2020 Change 2021
US$m US$m % S$m
Revenue 17,688 13,234 34 23,761
Underlying profit attributable to
shareholders (#) 786 429 83 1,056
Non-trading items^ (125) 111 nm (169)
Profit attributable to shareholders 661 540 22 887
Shareholders' funds 7,368 6,974 6 9,960
US¢ US¢ S¢
Underlying earnings per share (#) 199 109 83 268
Earnings per share 167 137 22 225
Dividend per share 80 43 86 107
US$ US$ S$
Net asset value per share 18.64 17.65 6 25.20
The exchange rate of US$1 =S$1.35 (31st December 2020: US$1=S$1.32) was used
for translating assets and liabilities at the balance sheet date, and
US$1=S$1.34 (2020: US$1=S$1.38) was used for translating the results for the
period. The financial results for the year ended 31st December 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 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.
CHAIRMAN'S STATEMENT
Overview
The performance of Jardine Cycle & Carriage ("JC&C" or "the Group") in
2021 recovered substantially compared to 2020, reflecting improvements across
all parts of the portfolio. The Group's results were, however, 9% lower than
in 2019, prior to the start of the pandemic.
Astra contributed US$655 million to the Group's underlying profit, compared to
US$309 million in the previous year, reflecting improved performances
particularly from its automotive, financial services, heavy equipment and
mining, and agribusiness operations.
Direct Motor Interests contributed an underlying profit of US$39 million,
compared to US$14 million in the previous year, mainly due to improved
contributions from Cycle & Carriage Singapore and Tunas Ridean.
Other Strategic Interests contributed an underlying profit of US$151 million,
26% up from the previous year, mainly due to improved contributions from
THACO's automotive operations.
Corporate costs increased from US$14 million in 2020 to US$59 million,
primarily due to the impact on costs of the translation of foreign currency
loans, which led to a foreign exchange loss of US$28 million in 2021, compared
to a gain of US$24 million in the previous year.
The Group's underlying profit attributable to shareholders was 83% higher than
the previous year at US$786 million. After accounting for non-trading items,
profit attributable to shareholders was US$661 million, 22% higher than the
previous year. The non-trading items recorded in the year mainly comprised
unrealised fair value losses related to non-current investments.
The Group's financial position remains strong, with net asset value per share
of US$18.64 at the year-end, 6% higher than at the end of 2020. Consolidated
net cash, excluding Astra's financial services subsidiaries, was US$0.8
billion at the end of December 2021, compared to consolidated net debt of
US$0.9 billion at the end of 2020, mainly due to improved operating cash
flows. Net debt within Astra's financial services subsidiaries decreased from
US$2.8 billion to US$2.7 billion.
JC&C corporate net debt was US$1.5 billion, similar to the previous
year-end.
Strategic Developments
Astra
Over the past year, Astra has made several strategic investments in new
businesses, including US$35 million in Halodoc, a healthcare-based technology
platform, as part of its strategic focus on building expertise in the
healthcare sector.
Astra also entered into several transactions involving its existing
businesses. In its infrastructure business, Astra acquired a 49% stake in
Jasamarga Pandaan Malang, the operator of the 38.5km Pandaan-Malang toll road,
one of the most important toll roads in East Java, for US$95 million. It
also acquired an additional 14% stake in Marga Lingkar Jakarta, the operator
of the 7.7km Kebon Jeruk- Ulujami toll road as part of the Jakarta Outer Ring
Road, for US$19 million, taking its ownership to 49%. These acquisitions bring
Astra's total interests in toll roads to 396km.
In Astra's property business, Astra Land Indonesia ("ALI"), Astra's 50:50
joint venture with Hongkong Land, acquired the remaining 33% stake in Astra
Modern Land, the developer of the Asya residential township in East Jakarta,
which it did not already own for US$70 million in December 2021.
Finally, in February 2022, ALI established a joint venture with LOGOS to
develop and manage modern logistics warehouses in Indonesia.
Direct Motor Interests
During the year, JC&C increased its interest in Cycle & Carriage
Bintang from 59.1% to 89.0% for around US$18 million, through a series of
on-market purchases and acceptances under its Voluntary General Offer. In June
2021, JC&C also entered into an agreement to acquire the remaining 30%
stake that it did not own in Republic Auto, a used car business in Singapore,
for approximately US$22 million.
Other Strategic Interests
During the year, JC&C increased its interest in REE from 29.8% to 31.0%
through a series of on-market purchases, for around US$10 million.
Dividends
The Board is recommending a final one-tier tax-exempt dividend of US¢62 per
share (2020: US¢34 per share) which, together with the interim dividend of
US¢18 per share (2020: US¢9 per share), will produce a total dividend for
the year of US¢80 per share (2020: US¢43 per share), 86% higher than 2020.
People
On behalf of the Board, I would like to recognise our 240,000 employees across
the region for their continuing hard work and efforts, which have enabled the
Group to continue to operate despite the challenging environment created by
the COVID-19 pandemic.
Ms Vimala Menon, the Lead Independent Director and Chairperson of the Audit
Committee, retired from the Board in December 2021. Mr Michael Kok, Chairman
of the Remuneration Committee, will be retiring from the Board in March 2022.
On behalf of the Board, I would like to record our appreciation and thank
Vimala and Michael for their valuable contributions to the Group.
I am delighted to welcome Mr Samuel Tsien, who joined the Board in October
2021 as an independent director. Samuel has many years of experience in the
banking and finance sectors, and we look forward to the contribution he will
bring to the Group.
Outlook
The pandemic is expected to remain a significant risk to performance in 2022,
but the Group is optimistic about the long-term economic prospects of
Southeast Asia, and is well placed to benefit from its growth opportunities.
Ben Keswick
Chairman
GROUP MANAGING DIRECTOR'S REVIEW
Group Review
The Group's business comprises three pillars: (i) Astra; (ii) Direct Motor
Interests ("DMI"), which consists of the Group's non-Astra automotive
businesses; and (iii) Other Strategic Interests. The contribution to
JC&C's underlying profit attributable to shareholders by business pillar
was as follows:
Contribution to JC&C's underlying profit
Year ended 31st December
2021 2020 Change
Business pillars US$m US$m %
Astra 655 309 112
Direct Motor Interests 39 14 183
Other Strategic Interests 151 120 26
Corporate Costs (59) (14) 320
Underlying profit attributable to
shareholders 786 429 83
Astra
Astra contributed US$655 million to JC&C's underlying profit, compared to
US$309 million in the previous year. Under Indonesian accounting standards,
Astra reported a net income equivalent to US$1.4 billion, reflecting improved
performances particularly from its automotive, financial services, heavy
equipment and mining, and agribusiness operations.
Automotive
Net income increased significantly to US$509 million in 2021, mainly due to
the recovery from the negative impact in 2020 of the pandemic and related
containment measures. Sales volumes increased during the year, particularly in
the car segment, which benefited from temporary luxury sales tax incentives.
Key points were as follows:
· The wholesale car market increased by 67% to 887,000 units. Astra's car sales
were 81% higher at 489,000 units, with its market share increasing from 51% to
55%.
· The wholesale market for motorcycles increased by 38% to 5.1 million units.
Astra's Honda motorcycle sales grew 36% to 3.9 million units, but saw a slight
decrease in market share from 79% to 78%.
· Components business, Astra Otoparts, reported a net profit of US$43 million
compared to a profit of less than US$1 million last year, mainly due to higher
revenues from the original equipment manufacturer, replacement market and
export segments.
Financial Services
Net income increased by 49% to US$345 million, due to higher contributions
from the consumer finance and general insurance businesses. Key points were as
follows:
· Consumer finance businesses saw a 25% increase in the amounts financed to
US$5.8 billion. The net income contribution from the car-focused finance
companies increased by 70% to US$98 million, and the contribution from the
motorcycle-focused financing business increased by 66% to US$174 million. Both
increases were mainly due to lower loan loss provisioning.
· Heavy equipment-focused finance operations saw an 88% increase in the amounts
financed to US$467 million. The net income contribution from this business
increased by 85% to US$5 million.
· General insurance company, Asuransi Astra Buana, reported a 21% increase in
net income to US$77 million, due to higher investment and underwriting income.
Heavy Equipment, Mining, Construction & Energy
Net income increased by 79% to US$427 million, mainly due to higher Komatsu
heavy equipment sales and improved coal prices. Key points were as follows:
· United Tractors reported a 71% increase in net income to US$718 million.
· Komatsu heavy equipment sales increased by 97% to 3,088 units.
· Mining contracting operations reported 3% higher overburden removal volume at
852 million bank cubic metres, while coal production was 1% higher at 116
million tonnes.
· Coal mining subsidiaries achieved 3% higher coal sales at 9 million tonnes,
including 2.4 million tonnes of metallurgical coal.
· Agincourt Resources saw 3% higher gold sales at 330,000 oz.
· General contractor, Acset Indonusa, reported a net loss of US$49 million,
mainly due to the slowdown of several ongoing projects and reduced
construction project opportunities during the pandemic.
Agribusiness
Net income from Agribusiness increased significantly to US$110 million, mainly
as a result of a 32% increase in average crude palm oil prices.
Infrastructure & Logistics
Astra's infrastructure and logistics division reported a net profit of US$5
million, 53% higher than last year, mainly due to improved performances in its
toll road and Serasi Autoraya operations. Key points were as follows:
· Toll road revenues were 25% higher. Astra has 396km of operational toll roads
along the Trans-Java network and in the Jakarta Outer Ring Road.
· Serasi Autoraya's net income increased by 26% to US$10 million, mainly due to
improved operating margins and a 5% increase in the number of vehicles under
contract to 24,300 units, despite lower used car sales.
Direct Motor Interests
The Group's Direct Motor Interests contributed US$39 million to JC&C's
underlying profit, compared to US$14 million in the previous year. Key
points were as follows:
· Cycle & Carriage Singapore contributed US$29 million, 58% up from the
previous year, supported by higher profits from its premium and used car
operations, which were less impacted than its mass market operations by high
COE prices. Total passenger car sales fell 10% to 6,783 units, with market
share decreased from 17% to 15%.
· In Indonesia, Tunas Ridean contributed US$16 million, compared to US$1 million
last year, mainly due to higher profits from its automotive and financial
services businesses.
· Cycle & Carriage Bintang in Malaysia contributed a profit of US$1 million,
compared to a loss of US$1 million in the previous year.
Other Strategic Interests
Other Strategic Interests contributed US$151 million, 26% up on the previous
year. Key points were as follows:
· THACO contributed a profit of US$62 million, 60% higher than the previous
year, mainly due to stronger automotive results, as margins benefited from an
improved sales mix which offset a 5% decline in unit sales.
· REE's contribution of US$22 million was 8% higher than the previous year,
mainly due to improved performances from its power and water investments as a
result of favourable hydrography.
· The contribution from Siam City Cement ("SCCC") was US$28 million, 18% up from
last year, mainly due to a reduction in corporate tax rates in respect of its
Sri Lanka operations. Excluding the favourable tax impact, SCCC's contribution
would have been flat, with the benefit of continued cost-saving initiatives
offset by continued lower cement volumes, as market demand was affected by the
pandemic, and, reduced margins as a result of an increase in coal prices.
· The Group's investment in Vinamilk delivered a dividend income of US$39
million. Vinamilk reported a 5% decrease in net profit mainly due to higher
input and transportation costs.
Corporate Costs
Corporate costs increased from US$14 million in 2020 to US$59 million,
primarily due to the impact on costs of the translation of foreign currency
loans, which led to a foreign exchange loss of US$28 million in 2021, compared
to a gain of US$24 million in the previous year.
Summary
We saw a strong recovery across the JC&C portfolio in 2021 and I am
encouraged that we have achieved results which are close to the Group's
pre-pandemic 2019 performance. Overall, we are pleased that the portfolio has
demonstrated resilience during these challenging times.
Ben Birks
Group Managing Director
CORPORATE PROFILE
Jardine Cycle & Carriage is the investment holding company of the Jardine
Matheson Group in Southeast Asia. JC&C seeks to grow with Southeast Asia
by investing in market-leading businesses based on the themes of urbanisation
and the emerging consumer class. The Group works closely with its businesses
to enable them to achieve their potential and to elevate their communities.
The Group has a 50.1% interest in Astra, a diversified group in Indonesia,
which is also the largest independent automotive group in Southeast Asia.
JC&C also has significant interests in Vietnam, including 26.6% in Truong
Hai Group Corporation, 31.0% in Refrigeration Electrical Engineering
Corporation and 10.6% in Vinamilk. Its 25.5%-owned Siam City Cement also has a
presence in South Vietnam, in addition to operating in Thailand, Sri Lanka,
Cambodia and Bangladesh.
The Direct Motor Interests in JC&C's portfolio are the Cycle &
Carriage businesses in Singapore, Malaysia and Myanmar, and 46.2%-owned Tunas
Ridean in Indonesia.
JC&C is a leading Singapore-listed company, 75%-owned by the Jardine
Matheson group. Together with its subsidiaries and associates, JC&C
employs around 240,000 people across Southeast Asia.
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the six months and full year ended
31st December 2021
6 months ended 31(st) December 12 months ended 31(st) December
2021 2020 Change 2021 2020 Change
Note US$m US$m % US$m US$m %
Revenue ((1)) 2 9,401.0 6,639.6 42 17,688.0 13,234.2 34
Net operating costs 3 (8,370.1) (6,066.2) 38 (15,992.7) (11,717.0) 36
Operating profit 3 1,030.9 573.4 80 1,695.3 1,517.2 12
Financing income 63.0 73.0 -14 126.1 121.6 4
Financing charges ((2)) (87.9) (115.4) -24 (178.4) (258.6) -31
Net financing charges (24.9) (42.4) -41 (52.3) (137.0) -62
Share of associates' and joint
ventures' results after tax 327.0 8.9 >100 590.6 100.2 >100
Profit before tax 1,333.0 539.9 >100 2,233.6 1,480.4 51
Tax 4 (306.2) (107.7) >100 (515.3) (234.8) >100
Profit after tax 1,026.8 432.2 >100 1,718.3 1,245.6 38
Profit attributable to:
Shareholders of the Company 434.3 239.4 81 660.6 540.3 22
Non-controlling interests 592.5 192.8 >100 1,057.7 705.3 50
1,026.8 432.2 >100 1,718.3 1,245.6 38
US¢ US¢ US¢ US¢
Earnings per share:
- basic 6 110 61 80 167 137 22
- diluted 6 110 61 80 167 137 22
(1) Higher revenue was mainly due to higher sales in Astra's automotive,
heavy equipment and mining operations and higher sales in Direct Motor
Interests.
(2) Decrease in finance charges mainly due to lower level of net debt
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the six months and full
year ended 31st December 2021
6 months ended 31(st) December 12 months ended 31(st) December
2021 2020 2021 2020
US$m US$m US$m US$m
Profit for the year 1,026.8 432.2 1,718.3 1,245.6
Items that will not be reclassified to profit or loss:
Asset revaluation
- surplus during the year 3.2 1.1 3.3 1.1
Remeasurements of defined benefit pension plans (4.3) (14.8) (8.8) (15.5)
Tax relating to items that will not be reclassified 2.0 2.1 2.7 1.3
Share of other comprehensive income/(expense) of
associates and joint ventures, net of tax (3.2) (9.4) (5.2) (11.2)
(2.3) (21.0) (8.0) (24.3)
Items that may be reclassified subsequently to profit
or loss:
Translation difference
- gain/(loss) arising during the year 186.9 164.6 (153.0) (160.7)
- transfer to profit and loss - 0.3 - -
186.9 164.9 (153.0) (160.7)
Financial assets at FVOCI ((1))
- gain/(loss) arising during the year 8.3 22.0 (2.1) 19.1
- transfer to profit and loss (0.8) (0.7) (2.5) 1.9
7.5 21.3 (4.6) 21.0
Cash flow hedges
- gain/(loss) arising during the year 13.7 (34.3) 95.5 (45.9)
- transfer to profit and loss - - - 2.8
13.7 (34.3) 95.5 (43.1)
Tax relating to items that may be reclassified (1.9) 5.6 (18.6) 4.8
Share of other comprehensive income/(expense) of
associates and joint ventures, net of tax 14.7 21.8 49.9 (56.8)
220.9 179.3 (30.8) (234.8)
Other comprehensive income/(expense) for the year 218.6 158.3 (38.8) (259.1)
Total comprehensive income for the year 1,245.4 590.5 1,679.5 986.5
Attributable to:
Shareholders of the Company 521.5 305.4 613.8 427.3
Non-controlling interests 723.9 285.1 1,065.7 559.2
1,245.4 590.5 1,679.5 986.5
((1) )Fair value through other comprehensive income ("FVOCI")
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 31st December 2021
Note 2021 2020
US$m US$m
Non-current assets
Intangible assets 1,775.9 1,816.9
Right-of-use assets 769.4 832.4
Property, plant and equipment 3,852.1 4,243.2
Investment properties 529.1 532.2
Bearer plants 498.6 496.7
Interests in associates and joint ventures 4,385.5 4,032.6
Non-current investments 2,255.3 2,283.9
Non-current debtors 2,782.7 2,846.8
Deferred tax assets 391.6 370.8
17,240.2 17,455.5
Current assets
Current investments 45.6 60.4
Properties for sale 374.7 390.2
Stocks 1,531.9 1,320.2
Current debtors 5,147.1 4,676.9
Current tax assets 125.4 111.4
Bank balances and other liquid funds
- non-financial services companies 4,210.7 3,095.1
- financial services companies 378.1 402.5
4,588.8 3,497.6
11,813.5 10,056.7
Total assets 29,053.7 27,512.2
Non-current liabilities
Non-current creditors 201.5 278.4
Non-current provisions 183.8 186.3
Non-current lease liabilities 64.4 79.7
Long-term borrowings 8
- non-financial services companies 2,597.1 1,719.3
- financial services companies 1,273.2 1,246.0
3,870.3 2,965.3
Deferred tax liabilities 358.9 343.5
Pension liabilities 396.6 389.4
5,075.5 4,242.6
Current liabilities
Current creditors 4,488.4 3,534.9
Current provisions 113.0 115.9
Current lease liabilities 52.6 65.2
Current borrowings 8
- non-financial services companies 843.3 2,229.3
- financial services companies 1,846.6 1,930.4
2,689.9 4,159.7
Current tax liabilities 239.0 87.3
7,582.9 7,963.0
Total liabilities 12,658.4 12,205.6
Net assets 16,395.3 15,306.6
Equity
Share capital 9 1,381.0 1,381.0
Revenue reserve 10 7,374.3 6,937.7
Other reserves 11 (1,387.1) (1,344.6)
Shareholders' funds 7,368.2 6,974.1
Non-controlling interests 12 9,027.1 8,332.5
Total equity 16,395.3 15,306.6
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the year ended 31st December
2021
Attributable to shareholders of the Company
Attributable
Asset Fair value to non-
Share Revenue revaluation Translation and other controlling Total
capital reserve reserve reserve reserves Total interests equity
US$m US$m US$m US$m US$m US$m US$m US$m
2021
Balance at 1st January 1,381.0 6,937.7 403.4 (1,683.7) (64.3) 6,974.1 8,332.5 15,306.6
Total comprehensive income - 656.3 1.3 (90.9) 47.1 613.8 1,065.7 1,679.5
Dividends paid by the Company - (204.7) - - - (204.7) - (204.7)
Dividends paid to non-controlling interests - - - - - - (313.8) (313.8)
Issue of shares to non-controlling interests - - - - - - 36.5 36.5
Change in shareholding - (14.9) - - - (14.9) (92.5) (107.4)
Other - (0.1) - - - (0.1) (1.3) (1.4)
Balance at 31st December
1,381.0 7,374.3 404.7 (1,774.6) (17.2) 7,368.2 9,027.1 16,395.3
2020
Balance at 1st January 1,381.0 6,720.0 403.4 (1,611.0) (33.3) 6,860.1 8,124.4 14,984.5
Total comprehensive income - 529.4 - (72.7) (29.4) 427.3 559.2 986.5
Dividends paid by the Company - (311.2) - - - (311.2) - (311.2)
Dividends paid to non-controlling interests - - - - - - (390.6) (390.6)
Issue of shares to non-controlling interests - - - - - - 38.9 38.9
Change in shareholding - (0.8) - - - (0.8) 0.8 -
Other - 0.3 - - (1.6) (1.3) (0.2) (1.5)
Balance at 31st December
1,381.0 6,937.7 403.4 (1,683.7) (64.3) 6,974.1 8,332.5 15,306.6
Jardine Cycle & Carriage Limited
Company Balance Sheet at 31st December 2021
Note 2021 2020
US$m US$m
Non-current assets
Property, plant and equipment 33.1 34.1
Interests in subsidiaries 1,416.5 1,412.2
Interests in associates and joint ventures 976.0 998.2
Non-current investment 264.5 223.0
2,690.1 2,667.5
Current assets
Current debtors 1,129.8 1,157.0
Bank balances and other liquid funds 24.2 46.5
1,154.0 1,203.5
Total assets 3,844.1 3,871.0
Non-current liabilities
Non-current borrowings 1,535.9 -
Deferred tax liabilities 6.2 6.3
1,542.1 6.3
Current liabilities
Current creditors 109.2 65.2
Current borrowings 10.0 1,569.1
Current tax liabilities 1.5 1.8
120.7 1,636.1
Total liabilities 1,662.8 1,642.4
Net assets 2,181.3 2,228.6
Equity
Share capital 9 1,381.0 1,381.0
Revenue reserve 10 474.1 471.7
Other reserves 11 326.2 375.9
Total equity 2,181.3 2,228.6
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the six months and full year
ended 31st December 2021
6 months ended 12 months ended
31st December 31st
December
2021 2020 2021 2020
US$m US$m US$m US$m
Profit for the year 64.0 160.7 207.1 99.3
Items that may be reclassified subsequently to
profit or loss:
Translation difference
- gain/(loss) arising during the year (11.8) 119.1 (49.7) 37.9
Other comprehensive income/(expense) for the year (11.8) 119.1 (49.7) 37.9
Total comprehensive income for the year 52.2 279.8 157.4 137.2
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the year ended 31st December 2021
Share Revenue Translation Total
capital reserve reserve equity
US$m US$m US$m US$m
2021
Balance at 1st January 1,381.0 471.7 375.9 2,228.6
Total comprehensive income/(expense) - 207.1 (49.7) 157.4
Dividends paid - (204.7) - (204.7)
Balance at 31st December 1,381.0 474.1 326.2 2,181.3
2020
Balance at 1st January 1,381.0 683.6 338.0 2,402.6
Total comprehensive income - 99.3 37.9 137.2
Dividends paid - (311.2) - (311.2)
Balance at 31st December 1,381.0 471.7 375.9 2,228.6
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the year ended 31st December 2021
2021 2020
Note US$m US$m
Cash flows from operating activities
Cash generated from operations 15 3,096.0 3,002.1
Interest paid (139.1) (215.5)
Interest received 137.3 112.0
Other finance costs paid (35.5) (68.4)
Income taxes paid (374.8) (361.7)
(412.1) (533.6)
Dividends received from associates and joint
ventures (net) 344.4 285.9
(67.7) (247.7)
Net cash flows from operating activities 3,028.3 2,754.4
Cash flows from investing activities
Sale of intangible assets - 0.6
Sale of property, plant and equipment 32.2 34.4
Sale of associates and joint ventures - 1,138.3
Sale of investments 245.5 444.8
Purchase of intangible assets (118.5) (96.5)
Additions to right-of-use assets (13.3) (18.1)
Purchase of property, plant and equipment (349.2) (309.4)
Purchase of investment properties (1.4) (6.3)
Additions to bearer plants (31.7) (34.8)
Purchase of subsidiaries, net of cash acquired - (51.8)
Purchase of shares in associates and joint ventures (77.1) (32.5)
Purchase of investments (375.0) (483.4)
Net cash flows from investing activities (688.5) 585.3
Cash flows from financing activities
Drawdown of loans ((1)) 4,275.7 1,903.0
Repayment of loans ((1)) (4,812.1) (2,865.8)
Principal elements of lease payments (104.0) (133.8)
Changes in controlling interests in subsidiaries (107.4) -
Investments by non-controlling interests 36.5 38.9
Dividends paid to non-controlling interests (313.8) (390.6)
Dividends paid by the Company (204.7) (311.2)
Net cash flows from financing activities (1,229.8) (1,759.5)
Net change in cash and cash equivalents 1,110.0 1,580.2
Cash and cash equivalents at the beginning of the year 3,497.6 1,843.4
Effect of exchange rate changes (18.8) 74.0
Cash and cash equivalents at the end of the year ((2)) 4,588.8 3,497.6
(1) The increase in drawdown and repayment of loans includes the refinancing
effect of the Company's borrowings from current liabilities to non-current
liabilities.
(2) For the purpose of the Consolidated Statement of Cash Flows, cash and
cash equivalents comprise deposits with bank and financial institutions, bank
and cash balances, net of bank overdrafts. In the balance sheet, bank
overdrafts are included under current borrowings.
Jardine Cycle & Carriage Limited
Notes to the financial statements for the year ended 31st December 2021
1 Basis of preparation
The financial statements are consistent with those set out in the 2020 audited
accounts which have been prepared in accordance with Singapore Financial
Reporting Standards (International) ("SFRS(I)") and International Financial
Reporting Standards ("IFRS"). The condensed interim financial statements for
the six months ended 31st December 2021 have been prepared in accordance with
IAS 34 Interim Financial Reporting. The condensed interim financial statements
do not include all the information required for a complete set of financial
statements. However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the changes in
the Group's financial position and performance of the Group since the last
interim financial statements for the period ended 30th June 2021. There have
been no changes to the accounting policies described in the 2020 audited
accounts except for the adoption of new and amended standards as set out
below. The Group has not early adopted any other standard or amendments that
have been issued but not yet effective.
The exchange rates used for translating assets and liabilities at the balance
sheet date are US$1=S$1.3517 (2020: US$1=S$1.3216), US$1=RM4.1735 (2020:
US$1=RM4.0245), US$1=IDR14,269 (2020: US$1=IDR14,105), US$1=VND22,790 (2020:
US$1=VND23,086) and US$1=THB33.318 (2020: US$1= THB29.920).
The exchange rates used for translating the results for the period are
US$1=S$1.3433 (2020: US$1=S$1.3771), US$1=RM4.1485 (2020: US$1=RM4.2022),
US$1=IDR14,345 (2020: US$1=IDR14,647), US$1=VND22,915 (2020: US$1=VND23,247)
and US$1=THB32.118 (2020:
US$1=THB31.309).
Interpretations and amendments to published standard effective in 2021
On 1st January 2021, the Group has adopted the new or amended IFRS and
Interpretations of IFRS that are mandatory for application for the financial
year. Changes to the Group's accounting policies have been made as required,
in accordance with the transitional provisions in the respective IFRS and
Interpretations of IFRS.
The adoption of these new or amended IFRS and Interpretations of IFRS did not
result in substantial changes to the Group's accounting policies and had no
material effect on the amounts reported for the current or prior financial
years.
Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS
7, IFRS 4 and IFRS 16 (effective from 1st January 2021)
The amendments provide practical expedient from certain requirements under
IFRSs as a result of the reform which affect the measurement of financial
assets, financial liabilities and lease liabilities, and a number of reliefs
for hedging relationships. The Group applied the amendments from 1st January
2021 and there is no significant impact on the Group's consolidated financial
statements.
COVID-19 Related Rent Concessions beyond 30th June 2021: Amendment to IFRS 16
Leases (effective from 1st April 2021)
The Group adopted and applied the practical expedient of the Covid-19 Related
Rent Concessions: Amendment to IFRS 16 Leases, published in June 2020 ("2020
amendment"), in the 2020 annual financial statements. The 2021 amendment
extends the practical expedient in the 2020 amendment to eligible lease
payments due on or before 30th June 2022. By using the 2021 amendment, the
Group continues to apply the practical expedient consistently to all lease
contracts with similar characteristics and in similar circumstances, and does
not assess these concessions as lease modifications.
Critical accounting estimates and judgements
The preparation of the condensed interim financial statements require
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets,
liabilities, income and expense. Actual results may differ from these
estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements for the year ended 31st
December 2021.
2 Revenue
6 months ended 31(st) December
Direct
Motor
Astra Interests Total
US$m US$m US$m
Group
2021
Property 32.4 - 32.4
Motor vehicles 3,653.3 599.2 4,252.5
Financial services 896.1 - 896.1
Heavy equipment, mining, construction and energy 2,931.8 - 2,931.8
Other 1,288.2 - 1,288.2
8,801.8 599.2 9,401.0
From contracts with customers:
Recognised at a point in time 7,639.5 566.5 8,206.0
Recognised over time 137.1 31.5 168.6
7,776.6 598.0 8,374.6
From other sources:
Rental income from investment properties 5.9 - 5.9
Revenue from financial services companies 896.1 - 896.1
Other 123.2 1.2 124.4
1,025.2 1.2 1,026.4
8,801.8 599.2 9,401.0
2020
Property 15.1 - 15.1
Motor vehicles 2,386.5 755.4 3,141.9
Financial services 665.7 - 665.7
Heavy equipment, mining, construction and energy 1,861.8 - 1,861.8
Other 955.1 - 955.1
5,884.2 755.4 6,639.6
From contracts with customers:
Recognised at a point in time 5,024.0 718.6 5,742.6
Recognised over time 88.4 35.9 124.3
5,112.4 754.5 5,866.9
From other sources:
Rental income from investment properties 4.9 - 4.9
Revenue from financial services companies 669.6 - 669.6
Other 97.3 0.9 98.2
771.8 0.9 772.7
5,884.2 755.4 6,639.6
12 months ended 31(st) December
Direct
Motor
Astra Interests Total
US$m US$m US$m
Group
2021
Property 56.6 - 56.6
Motor vehicles 6,642.0 1,402.5 8,044.5
Financial services 1,735.2 - 1,735.2
Heavy equipment, mining, construction and energy 5,524.4 - 5,524.4
Other 2,327.3 - 2,327.3
16,285.5 1,402.5 17,688.0
From contracts with customers:
Recognised at a point in time 14,072.9 1,336.4 15,409.3
Recognised over time 245.5 63.8 309.3
14,318.4 1,400.2 15,718.6
From other sources:
Rental income from investment properties 11.9 - 11.9
Revenue from financial services companies 1,735.2 - 1,735.2
Other 220.0 2.3 222.3
1,967.1 2.3 1,969.4
16,285.5 1,402.5 17,688.0
2020
Property 51.9 - 51.9
Motor vehicles 4,555.5 1,269.4 5,824.9
Financial services 1,382.4 - 1,382.4
Heavy equipment, mining, construction and energy 4,106.7 - 4,106.7
Other 1,868.3 - 1,868.3
11,964.8 1,269.4 13,234.2
From contracts with customers:
Recognised at a point in time 10,171.6 1,205.6 11,377.2
Recognised over time 211.7 62.3 274.0
10,383.3 1,267.9 11,651.2
From other sources:
Rental income from investment properties 9.7 - 9.7
Revenue from financial services companies 1,382.4 - 1,382.4
Other 189.4 1.5 190.9
1,581.5 1.5 1,583.0
11,964.8 1,269.4 13,234.2
3 Net operating costs and operating profit
Group
6 months ended
12 months ended
31st
December
31st
December
2021 2020 Change 2021 2020 Change
US$m US$m % US$m US$m %
Cost of sales and services rendered (7,341.0) (5,263.5) 39 (13,923.0) (10,419.0) 34
Other operating income 125.9 273.9 -54 244.3 827.2 -70
Selling and distribution expenses (459.1) (508.2) -10 (867.8) (933.8) -7
Administrative expenses (603.6) (540.9) 12 (1,144.2) (1,065.2) 7
Other operating expenses (92.3) (27.5) >100 (302.0) (126.2) >100
(8,370.1) (6,066.2) 38 (15,992.7) (11,717.0) 36
Operating profit is determined after including:
Amortisation/depreciation of
- intangible assets (85.7) (64.8) 32 (151.8) (126.7) 20
- right-of-use assets (75.6) (115.6) -35 (149.7) (189.7) -21
- property, plant and equipment (368.0) (372.7) -1 (735.0) (763.0) -4
- bearer plants (13.6) (13.7) -1 (27.3) (26.7) 2
(Impairment)/write-back of
- intangible assets (13.9) (33.7) -59 (13.9) (33.9) -59
- right-of-use assets (2.0) - nm (2.0) - nm
- property, plant and equipment (37.3) (8.8) >100 (37.7) (9.4) >100
- debtors (122.0) (228.1) -47 (217.4) (361.4) -40
Fair value gain/(loss) on
- investment properties (3.1) 3.2 nm (3.1) 3.2 nm
- investments ((1)) (7.7) 137.9 nm (130.9) 113.4 nm
- agricultural produce - 9.0 -100 3.5 5.8 -40
- livestock (3.4) (3.4) 0 - (3.4) -100
- derivative not qualifying as hedge - (3.8) -100 - (2.4) -100
Profit/(loss) on disposal of:
- intangible assets (1.0) (1.3) -23 (1.0) (1.3) -23
- right-of-use assets (0.4) - nm (0.4) - nm
- property, plant and equipment 9.0 5.0 80 20.1 22.2 -9
- associates and joint ventures ((2)) - 10.6 -100 - 428.5 -100
- investments 0.8 (2.2) nm 2.5 1.7 47
Loss on disposal/write-down of receivables from
collateral vehicles (30.1) (53.5) -44 (65.2) (80.8) -19
Reversal of write-down/
(write-down) of stocks, net 3.1 (2.9) nm 2.6 (14.3) nm
Net exchange gain/(loss) ((3)) 3.2 74.4 -96 (23.7) 20.2 nm
Dividend and interest income from investments 57.9 52.8 10 98.9 88.8 11
nm - not meaningful
(1) Fair value gain/(loss) relates mainly to equity investments in Vinamilk
and Toyota Motor Corporation
(2) Profit on disposal of associates and joint ventures in 2020 relates mainly
to the sale of Permata Bank
(3) Net loss relates mainly to the impact of revaluing monetary liabilities
denominated in US dollars
4 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.
5 Dividends
At the Annual General Meeting in 2022, a final one-tier tax exempt dividend in
respect of 2021 of US¢62 per share amounting to a dividend of approximately
US$245.0 million is to be proposed. These financial statements do not reflect
this dividend payable, which will be accounted for in shareholders' equity as
an appropriation of retained earnings in the year ending 31st December 2022.
The dividends paid in 2021 and 2020 were as follows:
Group and Company
2021 2020
US$m US$m
Final one-tier tax exempt dividend in respect of previous year of
US¢34 per share (2020: in respect of 2019 of US¢69) 133.2 275.8
Interim one-tier tax exempt dividend in respect of current year of
US¢18 per share (2020: US¢9) 71.5 35.4
204.7 311.2
6 Earnings per share
Group
6 months ended 12 months ended
31st
December 31st December
2021 2020 2021 2020
US$m US$m US$m US$m
Basic and diluted earnings per share
Profit attributable to shareholders 434.3 239.4 660.6 540.3
Weighted average number of ordinary shares in issue (millions) 395.2 395.2 395.2 395.2
Basic earnings per share US¢110 US¢61 US¢167 US¢137
Diluted earnings per share US¢110 US¢61 US¢167 US¢137
Basic and diluted underlying earnings per share
Underlying profit attributable to shareholders 439.4 291.4 785.9 429.1
Weighted average number of ordinary shares in issue (millions) 395.2 395.2 395.2 395.2
Basic underlying earnings per share US¢111 US¢74 US¢199 US¢109
Diluted underlying earnings per share US¢111 US¢74 US¢199 US¢109
As at 31st December 2021 and 2020, there were no dilutive potential ordinary
shares in issue.
A reconciliation of the profit attributable to shareholders and underlying
profit attributable to shareholders is as follows:
Group
6 months ended 12 months ended
31st December 31st December
2021 2020 2021 2020
US$m US$m US$m US$m
Profit attributable to shareholders 434.3 239.4 660.6 540.3
Less:
Non-trading items (net of tax and non-controlling interests)
Fair value changes of agricultural produce and livestock (1.2) 1.7 1.0 0.7
Fair value changes of investment properties (1.5) 0.8 (1.5) 0.8
Fair value changes of investments (11.9) 131.8 (134.3) 109.1
Impairment loss on associates and joint ventures - (182.8) - (182.8)
Impairment loss on goodwill on subsidiaries (1.7) (8.5) (1.7) (8.5)
Net gain on disposal of interests in associates and joint ventures - - - 188.3
Other 11.2 5.0 11.2 3.6
(5.1) (52.0) (125.3) 111.2
Underlying profit attributable to shareholders 439.4 291.4 785.9 429.1
Non-trading items are separately identified to provide greater understanding
of the Group's underlying business performance. Items classified as
non-trading items include fair value gains or losses on revaluation of
investment properties, agricultural produce and equity investments which are
measured at fair value through profit and loss; gains and losses arising from
the sale of businesses, investments and properties; impairment of
non-depreciable intangible assets and other investments; provisions for
closure of businesses; acquisition-related costs in business combinations; and
other credits and charges of a non-recurring nature that require inclusion in
order to provide additional insight into the Group's underlying business
performance.
7 Financial Instruments
Financial instruments by category
The fair values of financial assets and financial liabilities, together with
carrying amounts at 31st December 2021 and 2020 are as follows:
Fair
value
through Fair value Financial
Fair value of profit through other assets at Other Total
hedging and comprehensive amortised financial carrying Fair
instruments loss income costs liabilities amount value
US$m US$m US$m US$m US$m US$m US$m
At 31.12.2021
Financial assets
measured at fair value
Other investments
- equity investments - 1,524.5 - - - 1,524.5 1,524.5
- debt investments - - 776.4 - - 776.4 776.4
Derivative financial
instruments 15.7 0.6 - - - 16.3 16.3
15.7 1,525.1 776.4 - - 2,317.2 2,317.2
Financial assets not
measured at fair value
Debtors - - - 7,091.7 - 7,091.7 7,153.3
Bank balances and
other liquid funds - - - 4,588.8 - 4,588.8 4,588.8
- - - 11,680.5 - 11,680.5 11,742.1
Financial liabilities
measured at fair value
Derivative financial
instruments (54.9) (0.1) - - - (55.0) (55.0)
Contingent consideration
payable - (8.8) - - - (8.8) (8.8)
(54.9) (8.9) - - - (63.8) (63.8)
Financial liabilities not
measured at fair value
Borrowings excluding
lease liabilities - - - - (6,560.2) (6,560.2) (6,589.3)
Lease liabilities - - - - (117.0) (117.0) (117.0)
Creditors excluding
non-financial liabilities - - - - (3,075.3) (3,075.3) (3,075.3)
- - - - (9,752.5) (9,752.5) (9,781.6)
At 31.12.2020
Financial assets
measured at fair value
Other investments
- equity investments - 1,647.0 - - - 1,647.0 1,647.0
- debt investments - - 697.3 - - 697.3 697.3
Derivative financial
instruments 9.3 1.6 - - - 10.9 10.9
9.3 1,648.6 697.3 - - 2,355.2 2,355.2
Financial assets not
measured at fair value
Debtors - - - 6,621.3 - 6,621.3 6,832.5
Bank balances and
other liquid funds - - - 3,497.6 - 3,497.6 3,497.6
- - - 10,118.9 - 10,118.9 10,330.1
Financial liabilities
measured at fair value
Derivative financial
instruments (168.7) (0.1) - - - (168.8) (168.8)
Contingent consideration
payable - (8.8) - - - (8.8) (8.8)
(168.7) (8.9) - - - (177.6) (177.6)
Financial liabilities not
measured at fair value
Borrowings excluding
lease liabilities - - - - (7,125.0) (7,125.0) (7,107.5)
Lease liabilities - - - - (144.9) (144.9) (144.9)
Creditors excluding
non-financial liabilities - - - - (2,232.7) (2,232.7) (2,232.7)
- - - - (9,502.6) (9,502.6) (9,485.1)
Fair value estimation
a) Financial instruments that are measured at fair value
For financial instruments that are measured at fair value in the balance
sheet, the corresponding fair value measurements are disclosed by level of the
following fair value measurement hierarchy:
Quoted prices (unadjusted) in active markets for identical assets or
liabilities ("quoted prices in active markets")
The fair values of listed securities and bonds are based on quoted prices in
active markets at the balance sheet date. The quoted market price used for
listed investments held by the Group is the current bid price.
Inputs other than quoted prices in active markets that are observable for the
asset or liability, either directly or indirectly ("observable current market
transactions")
The fair values of derivative financial instruments are determined using rates
quoted by the Group's bankers at the balance sheet date. The rates for
interest rate swaps and caps, cross-currency swaps and forward foreign
exchange contracts are calculated by reference to the market interest rates
and foreign exchange rates.
Inputs for the asset or liability that are not based on observable market data
("unobservable inputs")
The fair values of other unlisted equity investments are determined using
valuation techniques by reference to observable current market transactions or
the market prices of the underlying investments with certain degree of
entity-specific estimates or discounted cash flows by projecting the cash
inflows from these investments.
There were no changes in valuation techniques during the year.
The table below analyses the Group's financial instruments carried at fair
value, by the levels in the fair value measurement hierarchy.
Quoted Observable
prices in current
active market Unobservable
markets transactions inputs Total
US$m US$m US$m US$m
At 31.12.2021
Assets
Other investments
- equity investments 1,136.7 - 387.8 1,524.5
- debt investments 776.4 - - 776.4
1,913.1 - 387.8 2,300.9
Derivative financial instruments at fair value
- through other comprehensive income - 15.7 - 15.7
- through profit and loss - 0.6 - 0.6
1,913.1 16.3 387.8 2,317.2
Liabilities
Contingent consideration payable - - (8.8) (8.8)
Derivative financial instruments at fair value
- through other comprehensive income - (54.9) - (54.9)
- through profit and loss - (0.1) - (0.1)
- (55.0) - (55.0)
- (55.0) (8.8) (63.8)
Quoted Observable
prices in current
active market Unobservable
markets transactions inputs Total
US$m US$m US$m US$m
At 31.12.2020
Assets
Other investments
- equity investments 1,320.7 - 326.3 1,647.0
- debt investments 697.3 - - 697.3
2,018.0 - 326.3 2,344.3
Derivative financial instruments at fair value
- through other comprehensive income - 9.3 - 9.3
- through profit and loss - 1.6 - 1.6
2,018.0 10.9 326.3 2,355.2
Liabilities
Contingent consideration payable - - (8.8) (8.8)
Derivative financial instruments at fair value
- through other comprehensive income - (168.7) - (168.7)
- through profit and loss - (0.1) - (0.1)
- (168.8) - (168.8)
- (168.8) (8.8) (177.6)
There were no transfers among the three categories during the year ended 31st
December 2021 and 2020.
b) Financial instruments that are not measured at fair value
The fair values of current debtors, bank balances and other liquid funds,
current creditors, current borrowings and current lease liabilities of the
Group and the Company are assumed to approximate their carrying amounts due to
the short-term maturities of these assets and liabilities.
The fair values of long-term borrowings disclosed are based on market prices
or are estimated using the expected future payments discounted at market
interest rates. The fair values of non-current lease liabilities are estimated
using the expected future payments discounted at market interest rates.
8 Borrowings
Group
2021 2020
US$m US$m
Long-term borrowings:
- secured 12.8 391.6
- unsecured 3,857.5 2,573.7
3,870.3 2,965.3
Current borrowings:
- secured 164.6 443.1
- unsecured 2,525.3 3,716.6
2,689.9 4,159.7
Total borrowings 6,560.2 7,125.0
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$92.6 million (31st December 2020: US$295.7 million).
9 Share capital
Group
2021 2020
US$m US$m
Six months ended 31st December
Issued and fully paid:
Balance at 1st July and 31st December
- 395,236,288 (2020: 395,236,288) ordinary shares 1,381.0 1,381.0
Year ended 31st December
Issued and fully paid:
Balance at 1st January and 31st December
- 395,236,288 (2020: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the year.
The Company did not hold any treasury shares as at 31st December 2021 (31st
December 2020: Nil) and did not have any unissued shares under convertibles as
at 31st December 2021 (31st December 2020: Nil).
There were no subsidiary holdings (as defined in the Listing Rules of the
SGX-ST) as at 31st December 2021 (31st December 2020: Nil).
10 Revenue reserve
Group Company
2021 2020 2021 2020
US$m US$m US$m US$m
Movements:
Balance at 1st January 6,937.7 6,720.0 471.7 683.6
Defined benefit pension plans
- remeasurements (2.5) (5.6) - -
- deferred tax 0.7 0.5 - -
Share of associates' and joint ventures'
remeasurements of defined benefit
pension plans, net of tax (2.5) (5.8) - -
Profit attributable to shareholders 660.6 540.3 207.1 99.3
Dividends paid by the Company (204.7) (311.2) (204.7) (311.2)
Change in shareholding (14.9) (0.8) - -
Other (0.1) 0.3 - -
Balance at 31st December 7,374.3 6,937.7 474.1 471.7
11 Other reserves
Group Company
2021 2020 2021 2020
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 404.7 403.4 - -
Translation reserve (1,774.6) (1,683.7) 326.2 375.9
Fair value reserve 16.5 18.5 - -
Hedging reserve (37.0) (86.1) - -
Other reserve 3.3 3.3 - -
Balance at 31st December (1,387.1) (1,344.6) 326.2 375.9
Movements:
Asset revaluation reserve
Balance at 1st January 403.4 403.4 - -
Surplus on revaluation of assets 1.3 - - -
Balance at 31st December 404.7 403.4 - -
Translation reserve
Balance at 1st January (1,683.7) (1,611.0) 375.9 338.0
Translation difference (90.9) (72.7) (49.7) 37.9
Balance at 31st December (1,774.6) (1,683.7) 326.2 375.9
Fair value reserve
Balance at 1st January 18.5 12.2 - -
Financial assets at FVOCI
- fair value changes (1.0) 9.2 - -
- deferred tax 0.2 (0.1) - -
- transfer to profit and loss (1.2) 1.1 - -
Share of associates' and joint ventures'
fair value changes of financial assets at
FVOCI, net of tax - (2.3) - -
Other - (1.6) - -
Balance at 31st December 16.5 18.5 - -
Hedging reserve
Balance at 1st January (86.1) (48.8) - -
Cash flow hedges
- fair value changes 40.4 (25.1) - -
- deferred tax (8.1) 3.5 - -
- transfer to profit and loss - 1.4 - -
Share of associates' and joint ventures'
fair value changes of cash flow hedges,
net of tax 16.8 (17.1) - -
Balance at 31st December (37.0) (86.1) - -
Other reserve
Balance at 1st January and 31st December 3.3 3.3 - -
12 Non-controlling interests
Group
2021 2020
US$m US$m
Balance at 1st January 8,332.5 8,124.4
Asset revaluation surplus
- surplus on revaluation of assets 2.0 1.1
Financial assets at FVOCI
- fair value changes (1.1) 9.9
- deferred tax 0.3 (0.1)
- transfer to profit and loss (1.3) 0.8
(2.1) 10.6
Share of associates' and joint ventures' fair value changes of
financial assets at FVOCI, net of tax - (2.2)
Cash flow hedges
- fair value changes 55.1 (20.8)
- deferred tax (11.0) 1.5
- transfer to profit and loss - 1.4
44.1 (17.9)
Share of associates' and joint ventures' fair value changes of
cash flow hedges, net of tax 33.1 (35.2)
Defined benefit pension plans
- remeasurements (6.3) (9.9)
- deferred tax 2.0 0.8
(4.3) (9.1)
Share of associates' and joint ventures' remeasurements of
defined benefit pension plans, net of tax (2.7) (5.4)
Translation difference (62.1) (88.0)
Translation reserve realised - -
Profit for the year 1,057.7 705.3
Issue of shares to non-controlling interests 36.5 38.9
Dividends paid (313.8) (390.6)
Change in shareholding (92.5) 0.8
Other (1.3) (0.2)
Balance at 31st December 9,027.1 8,332.5
13 Related party transactions
The following significant related party transactions took place during the
year ended 31st December:
Group
2021 2020
US$m US$m
(a) With associates and joint ventures:
Purchase of goods and services (4,934.5) (3,072.8)
Sale of goods and services 1,434.5 844.1
Commission and incentives earned 6.0 19.7
Interest received 18.0 25.2
(b) With related companies and
associates of ultimate holding
company:
Management fees paid (6.4) (7.1)
Purchase of goods and services (3.2) (3.1)
Sale of goods and services 2.2 1.4
(c) Remuneration of directors of the
Company and key management
personnel of the Group:
Salaries and other short-term
employee benefits (10.6) (9.1)
14 Commitments
Capital expenditure authorised for at the balance sheet date, but not
recognised in the financial statements is as follows:
Group
2021 2020
US$m US$m
Authorised and contracted 106.3 85.0
Authorised but not contracted 282.0 249.0
388.3 334.0
15 Cash flows from operating activities
Group
2021 2020
US$m US$m
Profit before tax 2,233.6 1,480.4
Adjustments for:
Financing income (126.1) (121.6)
Financing charges 178.4 258.6
Share of associates' and joint ventures' results after tax (590.6) (100.2)
Amortisation/depreciation of
- intangible assets 151.8 126.7
- right-of-use assets 149.7 189.7
- property, plant and equipment 735.0 763.0
- bearer plants 27.3 26.7
Impairment/(write-back of impairment) of
- intangible assets 13.9 33.9
- right-of-use assets 2.0 -
- property, plant and equipment 37.7 9.4
- debtors 217.4 361.4
Fair value (gain)/loss on
- investment properties 3.1 (3.2)
- investments 130.9 (113.4)
- agricultural produce (3.5) (5.8)
- livestock - 3.4
- derivative not qualifying as hedge - 2.4
(Profit)/loss on disposal of:
- intangible assets 1.0 1.3
- right-of-use assets 0.4 -
- property, plant and equipment (20.1) (22.2)
- associates and joint ventures - (428.5)
- investments (2.5) (1.7)
Loss on disposal/write-down of receivables from collateral vehicles 65.2 80.8
Amortisation of borrowing costs for financial services companies 8.4 9.5
(Reversal of write-down) / write-down of stocks (2.6) 14.3
(Gain) / loss on modifications to lease term (0.4) 4.4
Changes in provisions 4.3 37.2
Foreign exchange (gain) / loss 21.8 (22.6)
1,002.5 1,103.5
Operating profit before working capital changes 3,236.1 2,583.9
Changes in working capital
Properties for sale 10.9 2.6
Stocks ((1)) (319.8) 447.9
Concession rights (15.6) (9.8)
Financing debtors (381.3) 135.2
Debtors ((2)) (416.9) 910.8
Creditors ((3)) 979.9 (1,110.5)
Pensions 2.7 42.0
(140.1) 418.2
Cash flows from operating activities 3,096.0 3,002.1
(1) Increase in stocks balance mainly due to higher purchases
(2) Increase in debtors balance mainly due to higher sales activities
(3) Increase in creditors balance mainly due to higher trade purchases
16 Notes to consolidated statement of cash flows
(a) Purchase of shares in associates and joint ventures
Purchase of shares in associates and joint ventures in 2021 mainly included
US$66.0 million for Astra's investment in toll road operators in Indonesia and
US$9.5 million for additional purchase of shares in Refrigeration Electrical
Engineering Corporation.
Purchase of shares in associates and joint ventures in 2020 mainly included
US$24.0 million as payment for deferred consideration in PT Jasamarga Surabaya
Mojokerto, a toll road operator in Indonesia, US$1.2 million and US$4.4
million for additional purchase of shares in Truong Hai Auto Corporation (now
known as Truong Hai Group Corporation) and Refrigeration Electrical
Engineering Corporation, respectively.
(b) Sale of associates and joint ventures
There were no associates or joint ventures disposed during the year.
Sale of associates and joint ventures in 2020 mainly included US$1,135.8
million received from the sale of Astra's 44.6% interest in Bank Permata.
(c) Changes in controlling interests in subsidiaries
Change in controlling interests of subsidiaries in 2021 mainly included an
outflow of US$69.7 million for Astra's acquisition of additional interest in
PT Astra Modern Land, US$17.5 million and US$18.8 million for acquisition of
additional interests in Cycle and Carriage Bintang Berhad and Republic Auto
Pte Ltd, respectively.
There were no changes in controlling interests of subsidiaries in 2020.
17 Segment Information
Operating segments are identified on the basis of internal reports about
components of the Group that are regularly reviewed by the Board for the
purpose of resource allocation and performance assessment. The Board considers
Astra as one operating segment because it represents a single direct
investment made by the Company. Decisions for resource allocation and
performance assessment of Astra are made by the Board of the Company while
resource allocation and performance assessment of the various Astra businesses
are made by the board of Astra, taking into consideration the opinions of the
Board of the Company. Direct Motor Interests are aggregated into one
reportable segment based on the similar automotive nature of their products
and services, while Other Strategic Interests, comprising the Group's
strategic investment portfolio, are aggregated into another reportable segment
based on their exposure to market-leading companies in key regional economies.
Set out below is an analysis of the segment information.
Underlying business perfomrance
Direct Other Non-
Motor Strategic Corporate trading
Astra Interests Interests costs items Group
US$m US$m US$m US$m US$m US$m
6 months ended 31st December 2021
Revenue 8,801.8 599.2 - - - 9,401.0
Net operating costs (7,781.4) (584.3) 28.4 (12.9) (19.9) (8,370.1)
Operating profit 1,020.4 14.9 28.4 (12.9) (19.9) 1,030.9
Financing income 62.9 - - 0.1 - 63.0
Financing charges (78.0) (0.9) - (9.0) - (87.9)
Net financing charges (15.1) (0.9) - (8.9) - (24.9)
Share of associates' and joint
ventures' results after tax 251.5 6.8 58.4 - 10.3 327.0
Profit before tax 1,256.8 20.8 86.8 (21.8) (9.6) 1,333.0
Tax (298.9) (5.3) (1.6) (0.5) 0.1 (306.2)
Profit after tax 957.9 15.5 85.2 (22.3) (9.5) 1,026.8
Non-controlling interests (596.5) (0.4) - - 4.4 (592.5)
Profit attributable to
shareholders 361.4 15.1 85.2 (22.3) (5.1) 434.3
6 months ended 31st December 2020
Revenue 5,884.2 755.4 - - - 6,639.6
Net operating costs (5,550.8) (726.5) 24.9 55.8 130.4 (6,066.2)
Operating profit 333.4 28.9 24.9 55.8 130.4 573.4
Financing income 72.9 0.1 - - - 73.0
Financing charges (106.2) (1.2) - (8.0) - (115.4)
Net financing charges (33.3) (1.1) - (8.0) - (42.4)
Share of associates' and joint
ventures' results after tax 129.0 (3.8) 69.0 - (185.3) 8.9
Profit before tax 429.1 24.0 93.9 47.8 (54.9) 539.9
Tax (96.9) (6.9) (1.6) (0.5) (1.8) (107.7)
Profit after tax 332.2 17.1 92.3 47.3 (56.7) 432.2
Non-controlling interests (194.4) (3.1) - - 4.7 (192.8)
Profit attributable to
shareholders 137.8 14.0 92.3 47.3 (52.0) 239.4
Underlying business perfomrance
Direct Other Non-
Motor Strategic Corporate trading
Astra Interests Interests costs items Group
US$m US$m US$m US$m US$m US$m
12 months ended 31st December 2021
Revenue 16,285.5 1,402.5 - - - 17,688.0
Net operating costs (14,496.1) (1,358.1) 38.9 (41.1) (136.3) (15,992.7)
Operating profit 1,789.4 44.4 38.9 (41.1) (136.3) 1,695.3
Financing income 125.8 0.2 - 0.1 - 126.1
Financing charges (159.5) (1.9) - (17.0) - (178.4)
Net financing charges (33.7) (1.7) - (16.9) - (52.3)
Share of associates' and joint
ventures' results after tax 452.9 11.8 115.6 - 10.3 590.6
Profit before tax 2,208.6 54.5 154.5 (58.0) (126.0) 2,233.6
Tax (498.4) (11.4) (3.0) (1.2) (1.3) (515.3)
Profit after tax 1,710.2 43.1 151.5 (59.2) (127.3) 1,718.3
Non-controlling interests (1,055.4) (4.3) - - 2.0 (1,057.7)
Profit attributable to
shareholders 654.8 38.8 151.5 (59.2) (125.3) 660.6
As at 31.12.2021
Net cash/(debt) (excluding
net debt of financial
services companies) 2,233.1 34.5 - (1,497.3) 770.3
Total equity 15,160.6 281.0 1,442.3 (488.6) 16,395.3
12 months ended 31st December 2020
Revenue 11,964.8 1,269.4 - - - 13,234.2
Net operating costs (11,041.8) (1,241.3) 36.7 8.8 520.6 (11,717.0)
Operating profit 923.0 28.1 36.7 8.8 520.6 1,517.2
Financing income 121.2 0.3 - 0.1 - 121.6
Financing charges (233.6) (3.1) - (21.9) - (258.6)
Net financing charges (112.4) (2.8) - (21.8) - (137.0)
Share of associates' and joint
ventures' results after tax 202.8 (2.3) 86.4 - (186.7) 100.2
Profit before tax 1,013.4 23.0 123.1 (13.0) 333.9 1,480.4
Tax (220.1) (7.1) (3.0) (1.1) (3.5) (234.8)
Profit after tax 793.3 15.9 120.1 (14.1) 330.4 1,245.6
Non-controlling interests (483.9) (2.2) - - (219.2) (705.3)
Profit attributable to
shareholders 309.4 13.7 120.1 (14.1) 111.2 540.3
As at 31.12.2020
Net cash/(debt) (excluding
net debt of financial
services companies) 626.4 39.1 - (1,519.0) (853.5)
Total equity 13,953.3 282.7 1,366.6 (296.0) 15,306.6
Segment assets and liabilities are not disclosed as these are not regularly
provided to the Board of the Company.
Set out below are analyses of the Group's revenue and non-current assets, by
geographical areas:
Indonesia Other Total
US$m US$m US$m
Non-current assets as at
31.12.2021 10,204.7 1,605.9 11,810.6
31.12.2020 10,414.8 1,539.2 11,954.0
Non-current assets excluded financial instruments and deferred tax assets.
Indonesia is disclosed separately as a geographical area as most of the
customers are based in Indonesia.
18 Interested person transactions
Aggregate value Aggregate value
of all interested of all interested
person person
transactions transactions
(excluding conducted under
transactions less shareholders'
than S$100,000 mandate
and transactions pursuant to Rule
conducted under 920 (excluding
shareholders' transactions less
mandate than S$100,000)
pursuant to
Rule 920)
Name of interested person and Nature of relationship US$m US$m
nature of transaction
For the year ended 31st December 2021
Hongkong Land Ltd Associate of the Company's
- Management support services controlling shareholder - 0.1
Jardine Engineering (S) Pte Ltd Associate of the Company's
- Air conditioner maintenance services controlling shareholder - 0.3
Jardine Matheson Limited Associate of the Company's
- Management support services controlling shareholder - 3.2
- Cyber security services - 0.3
- Digital and innovation services 0.8 -
Jardine Matheson & Co., Ltd Associate of the Company's
- Human resource and controlling shareholder
administration services - 0.4
Jardine Matheson (Singapore) Ltd Associate of the Company's
- Digital and innovation services controlling shareholder 1.0 -
The Dairy Farm Company Ltd Associate of the Company's
- Data analytics services controlling shareholder - 0.4
Schindler Lift (S) Pte Ltd Associate of the Company's
- Lift maintenance and services controlling shareholder - 0.2
Jardine International Motors Limited Associate of the Company's
- Management consultancy services controlling shareholder 2.4 -
Jardine International Motors (S) Associate of the Company's
Pte. Limited controlling shareholder
- Management consultancy services 0.4 -
- Human resource capital services - 0.1
- Purchase of a motor vehicle - 0.2
- Sale of a motor vehicle - 0.1
Spouse of Michael Kok Pak Kuan Director of the Company
- Purchase of a motor vehicle 0.2 -
- Sale of a motor vehicle 0.1 -
Hongkong Land (Unicode) Associate of the Company's
Investments Limited controlling shareholder
- Subscription of shares in an associate 9.2 -
PT Astra Land Indonesia Associate of the Company's
- Subscription of shares by a subsidiary controlling shareholder 9.2 -
23.3 5.3
19 Additional information
Group
6 months ended 31st December 12 months ended 31st
December
2021 2020 Change 2021 2020 Change
US$m US$m % US$m US$m %
Astra International
Automotive 123.8 48.6 >100 232.4 64.3 >100
Financial services 98.2 41.0 >100 172.5 110.8 56
Heavy equipment, mining, construction & energy 121.2 40.3 >100 216.9 122.7 77
Agribusiness 38.0 10.4 >100 53.9 22.0 >100
Infrastructure & logistics (0.8) 8.2 nm 2.4 1.2 100
Information technology 1.8 - nm 2.3 0.5 >100
Property 2.8 0.5 >100 5.7 2.9 97
385.0 149.0 >100 686.1 324.4 >100
Less: Withholding tax on dividend (23.6) (11.2) >100 (31.3) (15.0) >100
361.4 137.8 >100 654.8 309.4 >100
Direct Motor Interests
Singapore 9.8 17.1 -43 29.1 18.5 57
Malaysia 0.6 1.9 -68 0.8 (0.7) nm
Myanmar (3.4) (1.9) 79 (5.3) (3.4) 56
Indonesia (Tunas Ridean) 9.5 (2.2) nm 16.4 0.8 >100
Less: central overheads (1.4) (0.9) 56 (2.2) (1.5) 47
15.1 14.0 8 38.8 13.7 >100
Other Strategic Interests
Siam City Cement 14.8 12.7 17 28.5 24.2 18
Refrigeration Electrical Engineering 16.7 17.4 -4 22.2 20.6 8
Vinamilk 28.4 24.9 14 38.9 36.7 6
Truong Hai Group Corporation
- automotive 25.8 35.2 -27 60.2 39.3 53
- real estate 0.1 6.2 -98 4.7 7.4 -36
- agriculture (0.6) (4.1) -85 (3.0) (8.1) -63
25.3 37.3 -32 61.9 38.6 60
85.2 92.3 -8 151.5 120.1 26
Corporate costs
Central overheads (9.5) (12.3) -23 (20.4) (21.4) -5
Dividend income from other investments 2.6 2.4 8 5.6 5.1 10
Net financing charges (9.0) (7.9) 14 (16.9) (21.7) -22
Exchange differences (6.4) 65.1 nm (27.5) 23.9 nm
(22.3) 47.3 nm (59.2) (14.1) >100
Underlying profit attributable to shareholders 439.4 291.4 51 785.9 429.1 83
20 Dividend and closure of books
NOTICE IS HEREBY GIVEN that, subject to shareholders' approval being obtained
at the forthcoming 53rd Annual General Meeting of the Company ("AGM") for the
proposed final one-tier tax-exempt dividend of US$0.62 per share for the
financial year ended 31st December 2021 (the "Final Dividend"), the Transfer
Books and Register of Members of the Company will be closed from 5.00 p.m. on
Tuesday, 31st May 2022 (the "Record Date") up to, and including Wednesday, 1st
June 2022, for the purpose of determining shareholders' entitlement to the
Final Dividend. Duly completed transfers of shares of the Company in physical
scrip received by the Company's Share Registrar, M & C Services Private
Limited at 112 Robinson Road #05-01, Singapore 068902 up to 5.00 p.m. on the
Record Date will be registered before entitlements to the Final Dividend are
determined.
Subject to approval being obtained as aforesaid, shareholders (being
Depositors) whose securities accounts with The Central Depository (Pte)
Limited are credited with shares of the Company as at 5.00 p.m. on the Record
Date will rank for the Final Dividend.
The Final Dividend, if approved at the AGM, will be paid on 29th June 2022.
21 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
other than the non-trading items shown in Note 5 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 Rules of the SGX-ST.
No significant event or transaction other than as contained in this report has
occurred between 1st January 2022 and the date of this report.
22 Notice pursuant to Rule 704(13) of the Listing Manual
Pursuant to Rule 704(13) of the SGX-ST Listing Manual, Jardine Cycle &
Carriage Limited wishes to announce that no person occupying a managerial
position in the Company or any of its principal subsidiaries is a relative of
a director or chief executive officer or substantial shareholder of the
Company.
- 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
year ended 31 December 2021 can be accessed through the internet at
'www.jcclgroup.com'.
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