REG - Jardine Matheson Hdg - JC&C - 2022 FY Results and Dividend
28/02/2023 10:15
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RNS Number : 3263R Jardine Matheson Hldgs Ltd 28 February 2023
To: Business
Editor
28th February 2023
For immediate release
Jardine Cycle & Carriage Limited
2022 Financial Statements and Dividend Announcement
The following announcement was issued today by the Company's 76.6%-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 2023
JARDINE CYCLE & CARRIAGE LIMITED
2022 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT
Highlights
· Record underlying profit of US$1,096 million, 39% higher than 2021
· Improved performances from both Astra and non-Astra interests
· Proposed final dividend of US¢83 per share, total dividend of
US¢111 for the year, 39% higher than 2021
"The Group achieved a record underlying profit in 2022. Astra achieved a
record profit as it benefited from Indonesia's strong economic recovery and
higher commodity prices, while the Group's non-Astra interests collectively
also made a record contribution, mainly due to the strong performance of THACO
and Direct Motor Interests. The Group expects to face challenges ahead arising
from uncertainties around the global economic outlook, but we remain confident
in the Group's prospects and it is well-positioned to achieve sustainable
growth through the opportunities in Southeast Asia."
Ben Keswick, Chairman
Group Results
Year ended 31st December
2022 2021 Change 2022
US$m US$m % S$m
Revenue 21,793 17,688 23% 30,065
Underlying profit attributable to
shareholders * 1,096 786 39% 1,512
Non-trading items^ (356) (125) 185% (491)
Profit attributable to shareholders 740 661 12% 1,021
US¢ US¢ S¢
Underlying earnings per share * 277 199 39% 383
Earnings per share 187 167 12% 258
Dividends per share 111 80 39% 153
US$ US$ S$
Net asset value per share 18.07 18.64 -3% 24.29
The exchange rate of US$1=S$1.34 (31st December 2021: US$1=S$1.35) was used
for translating assets and liabilities at the balance sheet date, and
US$1=S$1.38 (2021: US$1=S$1.34) was used for translating the results for the
period. The financial results for the year ended 31st December 2022 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
CHAIRMAN'S STATEMENT
Overview
Jardine Cycle & Carriage ("JC&C" or "the Group") achieved a record
underlying profit in 2022, reflecting improvements in the performance of
most parts of the portfolio.
Astra contributed US$913 million to the Group's underlying profit, 39% higher
than the previous year, driven primarily by the recovery in the Indonesian
economy and higher commodity prices.
Truong Hai Group Corporation ("THACO") contributed US$83 million, 34% higher
than the previous year, mainly due to a strong performance from its automotive
business.
Direct Motor Interests contributed US$63 million, an increase of 62%, with
higher profits in Singapore, Malaysia and Indonesia.
The contribution from the Group's Other Strategic Interests was 4% lower at
US$86 million, due to a weaker performance by Siam City Cement ("SCCC"),
although Refrigeration Engineering Electrical ("REE") continued to perform
well, particularly from its renewable energy business.
Corporate costs fell from US$59 million to US$48 million, primarily due to the
translation of foreign currency loans, which led to a foreign exchange gain of
US$4 million in 2022, compared to a loss of US$28 million in the previous
year. This foreign exchange impact more than offset a US$17 million increase
in net financing charges.
The Group's underlying profit attributable to shareholders increased by 39% to
US$1,096 million. After accounting for non-trading items, the Group's profit
attributable to shareholders was US$740 million, 12% higher than the previous
year. The non-trading items recorded in the year mainly comprised unrealised
fair value losses of US$238 million related to non-current investments, and an
impairment loss of US$114 million in respect of the Group's investment in
SCCC, necessary due to a challenging operating environment.
The Group's financial position remains strong. The consolidated net cash
position, excluding the net borrowings within Astra's financial services
subsidiaries, was US$893 million at the end of 2022, compared to US$770
million at the end of 2021, mainly due to strong operating cash flows. Net
debt within Astra's financial services subsidiaries increased from US$2.7
billion at the end of 2021 to US$2.8 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 continued to make a number of strategic
investments in new businesses. Continuing its focus on providing a
compelling financial services offer to its customers, it acquired a 49.6%
interest in Bank Jasa Jakarta for US$260 million, with plans to transform it
into a digital bank in Indonesia.
Astra also continued its diversification away from coal. United Tractors has
signed a conditional sale and purchase agreement to acquire 90% interests in
Stargate Pacific Resources and Stargate Mineral Asia, a nickel mining and
processing business, for a total of US$272 million. It has also acquired a
31.5% interest in Arkora Hydro, a company focused on hydro-based energy power
generation.
Astra also acquired a 7.4% interest in Medikaloka Hermina, one of Indonesia's
largest hospital groups, as part of its growing focus on medical services.
Direct Motor Interests
During the year, JC&C further increased its interest in Cycle &
Carriage Bintang from 89.0% to 96.9% through on-market purchases, acceptances
under its Voluntary General Offer and direct purchases from the minority
shareholders. Cycle & Carriage Bintang was successfully delisted from
Bursa Malaysia in September.
In February 2023, Cycle & Carriage Singapore completed a sale and
leaseback arrangement of its properties for around US$230 million.
Other Strategic Interests
JC&C increased its interest in REE during the year, from 31.0% to 33.6%,
through a series of on-market purchases, for around US$34 million.
Dividends
The Board is recommending a final one-tier tax-exempt dividend of US¢83 per
share (2021: US¢62 per share) which, together with the interim dividend of
US¢28 per share (2021: US¢18 per share), will produce a total dividend for
the year of US¢111 per share (2021: US¢80 per share), 39% higher than 2021.
sustainability
ESG is firmly embedded in JC&C's management system. It is an important
part of its long-term portfolio strategy and is one of the considerations when
deploying capital. In 2022, JC&C published its commitments around coal,
carbon, energy and biodiversity as part of the Group's role in supporting a
just energy transition. In addition, JC&C has published its first Climate
Change Report in line with the Task Force on Climate-Related Financial
Disclosures ("TCFD") recommendations.
People
On behalf of the Board, I would like to thank our 240,000 employees across the
region for their commitment and effort, which have enabled the Group to
achieve a strong performance in 2022.
I am delighted to welcome Amy Hsu, who was appointed as Group Finance Director
and joined the Board in August. Amy previously carried out various senior
finance roles in the Jardine Matheson Group. Stephen Gore, our previous Group
Finance Director, has taken on a new role focused on driving business
development across Southeast Asia for the Jardine Group. He remains a
Director of JC&C.
Outlook
The Group expects to face challenges ahead arising from uncertainties around
the global economic outlook, but we remain confident in the Group's prospects
and it is well-positioned to achieve sustainable growth through the
opportunities in Southeast Asia.
Ben Keswick
Chairman
GROUP MANAGING DIRECTOR'S REVIEW
Group Review
The contributions to JC&C's underlying profit attributable to shareholders
by business segment were as follows:
Contribution to JC&C's underlying profit
Year ended 31st December
2022 2021 Change
Business segments US$m US$m %
Astra 913 655 39%
THACO 83 62 34%
Direct Motor Interests 63 39 62%
Other Strategic Interests 86 89 -4%
Corporate Costs - exchange gains/(losses) 4 (28) nm
Corporate Costs - others (53) (31) 71%
Underlying profit attributable to
Shareholders 1,096 786 39%
Astra
Astra contributed US$913 million to JC&C's underlying profit, 39% higher
than the previous year, led by stronger performances from most of its
businesses, particularly its automotive, financial services, heavy equipment
and mining operations. Total unrealised fair value losses of US$52 million in
respect of its GoTo and Hermina investments were reported under JC&C's
non-trading items.
Automotive
Net income increased by 33% to US$648 million, reflecting higher sales
volumes.
· The wholesale car market increased by 18% to 1.0 million units in
2022. Astra's car sales were 17% higher at 574,000 units, with its market
share relatively stable at 55%.
· The wholesale market for motorcycles increased by 3% to 5.2 million
units in 2022. Astra's Honda motorcycle sales were 2% higher at 4.0 million
units, which led to a slight decrease in market share from 78% to 77%.
· Components business, Astra Otoparts, reported an increase in net
income from US$43 million to US$87 million, mainly due to higher revenues from
the original equipment manufacturer and replacement market segments.
Financial Services
Net income for the Financial Services division increased by 22% to US$404
million, due to higher contributions from the consumer finance businesses on
the back of the strong automotive performance.
· Consumer finance businesses saw a 21% increase in the amounts
financed to US$6.8 billion. The net income contribution from the group's
car-focused finance companies increased by 35% to US$121 million, and the
contribution from the motorcycle-focused financing business increased by 29%
to US$214 million, due to larger loan portfolios and lower loss rates.
· General insurance company, Asuransi Astra Buana, reported a 12%
increase in net income to US$80 million, primarily as a result of higher
underwriting income and investment income.
Heavy Equipment, Mining, Construction and Energy
Net income from Heavy Equipment, Mining, Construction and Energy increased
significantly from US$427 million to US$850 million, mainly due to improved
profits from heavy equipment sales, mining contracting and coal mining, all of
which benefited from higher coal prices.
· Komatsu heavy equipment sales were 86% higher at 5,750 units, while
revenue from the parts and service businesses was also higher.
· Mining contracting operations saw a 12% increase in overburden
removal volume at 954 million bank cubic metres, while coal production was
stable at 116 million tonnes.
· Coal mining subsidiaries reported a 10% increase in coal sales at 9.9
million tonnes, including 2.4 million tonnes of metallurgical coal.
· Agincourt Resources reported a 13% decrease in gold sales at 286,000
oz.
· General contractor, Acset Indonusa, reported a lower net loss of
US$30 million compared to US$49 million last year. The company continued to be
impacted by the slowdown of ongoing projects and reduced construction project
opportunities.
Agribusiness
Net income from Agribusiness decreased by 12% to US$92 million, mainly due to
lower crude palm oil sales and production, which offset an increase in selling
prices.
Infrastructure and Logistics
Astra's infrastructure and logistics division reported an increase in net
profit from US$5 million to US$35 million, due to improved performance in its
toll road businesses, which saw a 29% 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 profit of US$83 million, 34% higher than the previous
year. The profit from its automotive business continued to grow, supported by
strong production levels and a temporary reduction in registration fees for
locally-assembled vehicles. Its unit sales were 30% higher, with market share
increased from 22% to 23%. Margins benefited from strong demand and an
improved sales mix. The group continues to expand its investment in
agriculture and, as a result, saw an increase in losses from this business as
substantial pre-production costs were incurred.
Direct Motor Interests
The Group's Direct Motor Interests contributed a US$63 million profit, 62% up
compared to the previous year.
· Cycle & Carriage Singapore's contribution was 13% higher at US$33
million, due to increased profits from its premium and used car operations.
New passenger car sales volume, however, fell by 15% to 5,761 units,
particularly in respect of its mass market models, which was adversely
impacted by the tightened COE cycle. Nevertheless, overall market share in
Singapore has increased from 15% to 19%.
· In Indonesia, Tunas Ridean contributed US$28 million, 71% higher than
the previous year, with higher profits across its automotive, financial
services and leasing businesses.
· Cycle & Carriage Bintang in Malaysia contributed a profit of US$7
million, compared to US$1 million in the previous year, mainly due to improved
sales volumes and margins backed by a larger order book, arising from a
temporary reduction in government sales tax.
Other Strategic Interests
The Group's Other Strategic Interests contributed a US$86 million profit, 4%
down compared to the previous year.
· REE's contribution of US$38 million was 70% higher than the previous
year, mainly due to an improved performance from its renewable energy
investments as a result of favourable hydrology and an increase in renewable
wind capacity.
· The Group's investment in Vinamilk produced a slightly lower dividend
income of US$37 million, compared to US$39 million in the previous year.
Vinamilk reported a 20% decrease in net profit, mainly due to higher raw
material costs.
· SCCC's contribution fell by 59% to US$12 million, as the business was
adversely impacted by higher energy costs and inflationary pressure, as well
as increased tax rates in Sri Lanka and the depreciation of the rupee, which
offset improved cement volumes and prices in most of its markets.
Corporate Costs
Corporate costs were US$48 million, compared to US$59 million in the previous
year, improving the overall underlying profit of the Group. This was primarily
due to a foreign exchange gain of US$4 million recorded on the translation of
foreign currency loans in 2022, compared to a loss of US$28 million in the
previous year. This foreign exchange impact more than offset an increase in
net financing charges of US$17 million.
Summary
The Group achieved a strong set of results in 2022. The Group expects
continuing uncertainties around the global economic outlook, but we remain
confident in JC&C's prospects and our abilities to achieve sustainable
growth.
Ben Birks
Group Managing Director
CORPORATE PROFILE
Jardine Cycle & Carriage ("JC&C" or "the Group") is the investment
holding company of the Jardine Matheson Group ("Jardines") in Southeast Asia.
Listed on the Mainboard of the Singapore Exchange and a constituent of the
Straits Times Index, the Group is 76%-owned by Jardines.
By investing in the region's market leaders, we aim to deliver sustainable
growth to create evermore opportunities for the people and communities of
Southeast Asia. Together with our subsidiaries and associates, JC&C
provides over 240,000 jobs across the region.
A diversified portfolio
§ Astra (50.1%-owned), a prominent Indonesian group participating in automotive,
financial services, heavy equipment, mining, construction & energy,
agribusiness, infrastructure, IT and property.
§ THACO (26.6%-owned), Vietnam's fast growing business group with market leading
positions in automotive, real estate and agriculture.
§ Direct Motor Interests making up an extensive dealership network through the
Cycle & Carriage businesses in Singapore (100%-owned), Malaysia
(96.9%-owned), and Myanmar (60%-owned), and Tunas Ridean (49.9%-owned) in
Indonesia.
§ Other Strategic Interests comprising Refrigeration Electrical Engineering
Corporation (33.6%-owned) in Vietnam with interests in power and utilities
including renewable energy, property development and office leasing, and
mechanical & electrical engineering; Siam City Cement (25.5%-owned)
operating in Thailand, Vietnam, Sri Lanka, Cambodia and Bangladesh; and
Vinamilk (10.6%-owned), the leading dairy producer in Vietnam.
For more information on JC&C and our businesses, visit www.jcclgroup.com
(http://www.jcclgroup.com) .
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the six months and full year ended
31st December 2022
6 months ended 31st December 12 months ended 31st December
2022 2021 Change 2022 2021 Change
Note US$m US$m % US$m US$m %
Revenue ((1)) 2 11,113.0 9,401.0 18 21,793.5 17,688.0 23
Net operating costs 3 (9,955.0) (8,370.1) 19 (19,083.5) (15,992.7) 19
Operating profit 3 1,158.0 1,030.9 12 2,710.0 1,695.3 60
Financing income 62.4 63.0 -1 120.0 126.1 -5
Financing charges ((2)) (96.0) (87.9) 9 (178.2) (178.4) 0
Net financing charges (33.6) (24.9) 35 (58.2) (52.3) 11
Share of associates' and joint
ventures' results after tax 254.7 327.0 -22 575.4 590.6 -3
Profit before tax 1,379.1 1,333.0 3 3,227.2 2,233.6 44
Tax 4 (411.4) (306.2) 34 (771.3) (515.3) 50
Profit after tax 967.7 1,026.8 -6 2,455.9 1,718.3 43
Profit attributable to:
Shareholders of the Company 252.3 434.3 -42 739.8 660.6 12
Non-controlling interests 715.4 592.5 21 1,716.1 1,057.7 62
967.7 1,026.8 -6 2,455.9 1,718.3 43
US¢ US¢ US¢ US¢
Earnings per share:
- basic 6 64 110 -42 187 167 12
- diluted 6 64 110 -42 187 167 12
(1) Higher revenue was mainly due to higher sales in Astra's
automotive, financial services, heavy equipment and mining operations and
higher sales in Direct Motor Interests.
(2) Increase in finance charges mainly due to higher interest rate,
partially offset by lower level of net debt
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the six months and full
year ended 31st December 2022
6 months ended 12 months ended
31st December 31st December
2022 2021 2022 2021
US$m US$m US$m US$m
Profit for the year 967.7 1,026.8 2,455.9 1,718.3
Items that will not be reclassified to profit and loss:
Translation difference (417.4) 113.0 (718.2) (62.1)
Asset revaluation
- surplus during the year 0.9 3.2 0.9 3.3
Remeasurements of defined benefit pension plans 12.9 (4.3) 13.6 (8.8)
Tax relating to items that will not be reclassified (2.5) 2.0 (2.7) 2.7
Share of other comprehensive income/(expense) of
associates and joint ventures, net of tax 4.6 (3.2) 6.0 (5.2)
(401.5) 110.7 (700.4) (70.1)
Items that may be reclassified subsequently to profit
and loss:
Translation difference
- gain/(loss) arising during the year (341.8) 73.9 (622.7) (90.9)
Financial assets at FVOCI ((1))
- gain/(loss) arising during the year (8.4) 8.3 (20.4) (2.1)
- transfer to profit and loss - (0.8) (1.9) (2.5)
(8.4) 7.5 (22.3) (4.6)
Cash flow hedges
- gain arising during the year 9.0 13.7 34.7 95.5
Tax relating to items that may be reclassified (2.1) (1.9) (7.6) (18.6)
Share of other comprehensive income of
associates and joint ventures, net of tax 23.5 14.7 97.6 49.9
(319.8) 107.9 (520.3) 31.3
Other comprehensive income/(expense) for the year (721.3) 218.6 (1,220.7) (38.8)
Total comprehensive income for the year 246.4 1,245.4 1,235.2 1,679.5
Attributable to:
Shareholders of the Company (76.2) 521.5 157.2 613.8
Non-controlling interests 322.6 723.9 1,078.0 1,065.7
246.4 1,245.4 1,235.2 1,679.5
((1) ) Fair value through other comprehensive income ("FVOCI")
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 31st December 2022
Note 2022 2021
US$m US$m
Non-current assets
Intangible assets 1,675.4 1,775.9
Right-of-use assets 733.2 769.4
Property, plant and equipment 3,692.4 3,852.1
Investment properties 455.9 529.1
Bearer plants 464.7 498.6
Interests in associates and joint ventures 4,576.1 4,385.5
Non-current investments 2,128.9 2,255.3
Non-current debtors 3,041.5 2,782.7
Deferred tax assets 404.0 391.6
17,172.1 17,240.2
Current assets
Current investments 18.2 45.6
Properties for sale 400.2 374.7
Stocks 2,130.2 1,531.9
Current debtors 5,495.2 5,147.1
Current tax assets 69.2 125.4
Bank balances and other liquid funds
- non-financial services companies 3,645.7 4,210.7
- financial services companies 372.4 378.1
4,018.1 4,588.8
12,131.1 11,813.5
Total assets 29,303.2 29,053.7
Non-current liabilities
Non-current creditors 154.5 201.5
Non-current provisions 207.3 183.8
Non-current lease liabilities 87.6 64.4
Long-term borrowings 8
- non-financial services companies 1,575.5 2,597.1
- financial services companies 1,532.4 1,273.2
3,107.9 3,870.3
Deferred tax liabilities 385.9 358.9
Pension liabilities 337.9 396.6
4,281.1 5,075.5
Current liabilities
Current creditors 5,276.9 4,488.4
Current provisions 107.2 113.0
Current lease liabilities 68.0 52.6
Current borrowings 8
- non-financial services companies 1,177.4 843.3
- financial services companies 1,662.9 1,846.6
2,840.3 2,689.9
Current tax liabilities 280.2 239.0
8,572.6 7,582.9
Total liabilities 12,853.7 12,658.4
Net assets 16,449.5 16,395.3
Equity
Share capital 9 1,381.0 1,381.0
Revenue reserve 10 7,737.1 7,374.3
Other reserves 11 (1,978.3) (1,387.1)
Shareholders' funds 7,139.8 7,368.2
Non-controlling interests 12 9,309.7 9,027.1
Total equity 16,449.5 16,395.3
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the year ended 31st December
2022
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$m
2022
Balance at 1st January 1,381.0 7,374.3 404.7 (1,774.6) (17.2) 7,368.2 9,027.1 16,395.3
Total comprehensive income - 748.1 0.4 (622.7) 31.4 157.2 1,078.0 1,235.2
Dividends paid by the Company - (357.0) - - - (357.0) - (357.0)
Dividends paid to non-controlling interests - - - - - - (642.4) (642.4)
Issue of shares to non-controlling interests - - - - - - 46.2 46.2
Change in shareholding - (28.2) - - - (28.2) (198.9) (227.1)
Other - (0.1) (0.3) - - (0.4) (0.3) (0.7)
Balance at 31st December 1,381.0 7,737.1 404.8 (2,397.3) 14.2 7,139.8 9,309.7 16,449.5
2021
Balance at 1st January 1,381.0 6,937.7 403.4 (1,683.7) (64.3) 6,974.1 8,332.5 15,306.6
Total comprehensive income - 656.3 1.3 (90.9) 47.1 613.8 1,065.7 1,679.5
Dividends paid by the Company - (204.7) - - - (204.7) - (204.7)
Dividends paid to non-controlling interests - - - - - - (313.8) (313.8)
Issue of shares to non-controlling interests - - - - - - 36.5 36.5
Change in shareholding - (14.9) - - - (14.9) (92.5) (107.4)
Other - (0.1) - - - (0.1) (1.3) (1.4)
Balance at 31st December 1,381.0 7,374.3 404.7 (1,774.6) (17.2) 7,368.2 9,027.1 16,395.3
Jardine Cycle & Carriage Limited
Company Balance Sheet at 31st December 2022
Note 2022 2021
US$m US$m
Non-current assets
Property, plant and equipment 33.6 33.1
Interests in subsidiaries 1,432.7 1,416.5
Interests in associates and joint ventures 864.3 976.0
Non-current investment 197.6 264.5
2,528.2 2,690.1
Current assets
Current debtors 1,115.4 1,129.8
Bank balances and other liquid funds 72.6 24.2
1,188.0 1,154.0
Total assets 3,716.2 3,844.1
Non-current liabilities
Long-term borrowings 877.5 1,535.9
Deferred tax liabilities 6.2 6.2
883.7 1,542.1
Current liabilities
Current creditors 118.4 109.2
Current borrowings 660.0 10.0
Current tax liabilities 1.7 1.5
780.1 120.7
Total liabilities 1,663.8 1,662.8
Net assets 2,052.4 2,181.3
Equity
Share capital 9 1,381.0 1,381.0
Revenue reserve 10 337.1 474.1
Other reserves 11 334.3 326.2
Total equity 2,052.4 2,181.3
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the six months and full year
ended 31st December 2022
6 months ended 12 months ended
31st December 31st December
2022 2021 2022 2021
US$m US$m US$m US$m
Profit for the year 6.4 64.0 220.0 207.1
Items that may be reclassified subsequently to
profit and loss:
Translation difference
- gain/(loss) arising during the year 71.0 (11.8) 8.1 (49.7)
Other comprehensive income/(expense) for the year 71.0 (11.8) 8.1 (49.7)
Total comprehensive income for the year 77.4 52.2 228.1 157.4
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the year ended 31st December 2022
Share Revenue Translation Total
capital reserve reserve equity
US$m US$m US$m US$m
2022
Balance at 1st January 1,381.0 474.1 326.2 2,181.3
Total comprehensive income - 220.0 8.1 228.1
Dividends paid - (357.0) - (357.0)
Balance at 31st December 1,381.0 337.1 334.3 2,052.4
2021
Balance at 1st January 1,381.0 471.7 375.9 2,228.6
Total comprehensive income/(expense) - 207.1 (49.7) 157.4
Dividends paid - (204.7) - (204.7)
Balance at 31st December 1,381.0 474.1 326.2 2,181.3
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the year ended 31st December 2022
2022 2021
Note US$m US$m
Cash flows from operating activities
Cash generated from operations 15 3,043.8 3,096.0
Interest paid (90.9) (139.1)
Interest received 122.5 137.3
Other finance costs paid (38.7) (35.5)
Income taxes paid (681.9) (374.8)
(689.0) (412.1)
Dividends received from associates and
joint ventures (net) 495.7 344.4
(193.3) (67.7)
Net cash flows from operating activities 2,850.5 3,028.3
Cash flows from investing activities
Sale of intangible assets 2.2 -
Sale of right-of-use assets 0.2 -
Sale of property, plant and equipment 35.5 32.2
Sale of investments 226.7 245.5
Additions to intangible assets (118.6) (118.5)
Additions to right-of-use assets (24.0) (13.3)
Purchase of property, plant and equipment (727.3) (349.2)
Purchase of investment properties (0.8) (1.4)
Additions to bearer plants (39.4) (31.7)
Purchase of shares in associates and joint ventures (397.6) (77.1)
Purchase of investments (481.0) (375.0)
Net cash flows from investing activities (1,524.1) (688.5)
Cash flows from financing activities
Drawdown of loans ((1)) 3,058.9 4,275.7
Repayment of loans ((1)) (3,384.3) (4,812.1)
Principal elements of lease payments (86.6) (104.0)
Changes in controlling interests in subsidiaries (224.7) (107.4)
Investments by non-controlling interests 46.2 36.5
Dividends paid to non-controlling interests (642.4) (313.8)
Dividends paid by the Company (357.0) (204.7)
Net cash flows from financing activities (1,589.9) (1,229.8)
Net change in cash and cash equivalents (263.5) 1,110.0
Cash and cash equivalents at the beginning of the year 4,588.8 3,497.6
Effect of exchange rate changes (307.2) (18.8)
Cash and cash equivalents at the end of the year ((2)) 4,018.1 4,588.8
(1) The drawdown and repayment of loans in 2021 included 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 2022
1 Basis of preparation
The financial statements are consistent with those set out in the 2021 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 2022 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 2022. There have
been no changes to the accounting policies described in the 2021 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$1.3445 (2021: US$1=S$1.3517), US$1=RM4.4125 (2021:
US$1=RM4.1735), US$1=IDR15,731 (2021: US$1=IDR14,269), US$1=VND23,627 (2021:
US$1=VND22,790) and US$1=THB34.560 (2021: US$1= THB33.318).
The exchange rates used for translating the results for the period are
US$1=S$1.3796 (2021: US$1=S$1.3433), US$1=RM4.4104 (2021: US$1=RM4.1485),
US$1=IDR14,922 (2021: US$1=IDR14,345), US$1=VND23,465 (2021: US$1=VND22,915)
and US$1=THB35.173 (2021:
US$1=THB32.118).
Interpretations and amendments to published standard effective in 2022
On 1st January 2022, the Group has adopted the new or amended IFRS and
Interpretations of IFRS that are mandatory for application for the financial
year. Changes to the Group's accounting policies have been made as required,
in accordance with the transitional provisions in the respective IFRS and
Interpretations of IFRS.
The adoption of these new or amended IFRS and Interpretations of IFRS did not
result in substantial changes to the Group's accounting policies and had no
material effect on the amounts reported for the current or prior financial
years.
Amendments to IAS 37 - Onerous Contracts - Cost of Fulfilling a Contract
(effective from 1st January 2022) clarifies that for the purpose of assessing
whether a contract is onerous, the cost of fulfilling the contract includes
both the incremental costs of fulfilling that contract and an allocation of
other costs that relate directly to fulfilling contracts. The Group applied
the amendment from 1st January 2022 and there is no material impact on the
Group's consolidated financial statements.
Critical accounting estimates and judgements
The preparation of the condensed interim financial statements require
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets,
liabilities, income and expense. Actual results may differ from these
estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty are the same as those
that applied to the consolidated financial statements for the year ended 31st
December 2022.
2 Revenue
6 months ended 31st December
Direct
Motor
Astra Interests Total
US$m US$m US$m
Group
2022
Property 32.5 - 32.5
Motor vehicles 4,224.7 825.1 5,049.8
Financial services 895.4 - 895.4
Heavy equipment, mining, construction & energy 4,095.7 - 4,095.7
Other 1,039.6 - 1,039.6
10,287.9 825.1 11,113.0
From contracts with customers:
Recognised at a point in time 9,136.3 805.0 9,941.3
Recognised over time 114.7 17.6 132.3
9,251.0 822.6 10,073.6
From other sources:
Rental income from investment properties 11.6 - 11.6
Revenue from financial services companies 895.4 - 895.4
Other 129.9 2.5 132.4
1,036.9 2.5 1,039.4
10,287.9 825.1 11,113.0
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 & 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
12 months ended 31st December
Direct
Motor
Astra Interests Total
US$m US$m US$m
Group
2022
Property 64.6 - 64.6
Motor vehicles 7,999.1 1,588.7 9,587.8
Financial services 1,779.6 - 1,779.6
Heavy equipment, mining, construction & energy 8,261.3 - 8,261.3
Other 2,100.2 - 2,100.2
20,204.8 1,588.7 21,793.5
From contracts with customers:
Recognised at a point in time 17,946.2 1,518.3 19,464.5
Recognised over time 213.0 65.9 278.9
18,159.2 1,584.2 19,743.4
From other sources:
Rental income from investment properties 12.3 - 12.3
Revenue from financial services companies 1,779.6 - 1,779.6
Other 253.7 4.5 258.2
2,045.6 4.5 2,050.1
20,204.8 1,588.7 21,793.5
2021
Property 56.6 - 56.6
Motor vehicles 6,642.0 1,402.5 8,044.5
Financial services 1,735.2 - 1,735.2
Heavy equipment, mining, construction & energy 5,524.4 - 5,524.4
Other 2,327.3 - 2,327.3
16,285.5 1,402.5 17,688.0
From contracts with customers:
Recognised at a point in time 14,072.9 1,336.4 15,409.3
Recognised over time 245.5 63.8 309.3
14,318.4 1,400.2 15,718.6
From other sources:
Rental income from investment properties 11.9 - 11.9
Revenue from financial services companies 1,735.2 - 1,735.2
Other 220.0 2.3 222.3
1,967.1 2.3 1,969.4
16,285.5 1,402.5 17,688.0
3 Net operating costs and operating profit
Group
6 months ended 12 months ended
31st December 31st December
2022 2021 Change 2022 2021 Change
US$m US$m % US$m US$m %
Cost of sales and services rendered (8,615.1) (7,340.9) 17 (16,885.1) (13,922.9) 21
Other operating income 53.3 125.9 -58 258.0 244.3 6
Selling and distribution expenses (452.2) (459.1) -2 (890.4) (867.8) 3
Administrative expenses (604.3) (603.6) 0 (1,178.6) (1,144.2) 3
Other operating expenses (336.7) (92.4) >100 (387.4) (302.1) 28
(9,955.0) (8,370.1) 19 (19,083.5) (15,992.7) 19
Operating profit is determined after including:
Amortisation/depreciation of:
- intangible assets (74.7) (85.7) -13 (141.8) (151.8) -7
- right-of-use assets (77.6) (75.6) 3 (141.1) (149.7) -6
- property, plant and equipment (352.5) (368.0) -4 (694.4) (735.0) -6
- bearer plants (13.9) (13.6) 2 (28.2) (27.3) 3
Impairment of:
- intangible assets (1.1) (13.9) -92 (1.1) (13.9) -92
- right-of-use assets - (2.0) > -100 - (2.0) > -100
- property, plant and equipment (45.7) (37.3) 23 (45.6) (37.7) 21
- debtors (92.3) (122.0) -24 (181.3) (217.4) -17
Fair value gain/(loss) on:
- investment properties (2.8) (3.1) -10 (2.8) (3.1) -10
- investments ((1)) (366.3) (7.7) >100 (269.6) (130.9) >100
- agricultural produce (11.3) - nm (11.4) 3.5 nm
- livestock - (3.4) > -100 - - nm
- derivative not qualifying as hedge - - nm 0.1 - nm
Profit/(loss) on disposal of:
- intangible assets (0.6) (1.0) -40 (0.9) (1.0) -10
- right-of-use assets 0.1 (0.4) nm 0.1 (0.4) nm
- property, plant and equipment 0.7 9.0 -92 12.0 20.1 -40
- investments 0.1 0.8 -88 1.7 2.5 -32
Loss on disposal/write-down of receivables from
collateral vehicles (14.5) (30.1) -52 (37.3) (65.2) -43
(Write-down)/reversal of
write-down of stocks, net (8.3) 3.1 nm (10.0) 2.6 nm
Net exchange gain/(loss) ((2)) 49.4 3.2 >100 18.2 (23.7) nm
Dividend and interest income from investments 60.4 57.9 4 102.0 98.9 3
nm - not meaningful
(1) Fair value gain/(loss) relates mainly to equity investments in
GoTo, Hermina, Vinamilk and Toyota Motor Corporation
(2) Net gain 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 2023, a final one-tier tax exempt dividend in
respect of 2022 of US¢83 per share amounting to a dividend of approximately
US$328.0 million is to be proposed. These financial statements do not reflect
this dividend payable, which will be accounted for in shareholders' equity as
an appropriation of retained earnings in the year ending 31st December 2023.
The dividends paid in 2022 and 2021 were as follows:
Group and Company
2022 2021
US$m US$m
Final one-tier tax exempt dividend in respect of previous year of
US¢62 per share (2021: in respect of 2020 of US¢34) 245.2 133.2
Interim one-tier tax exempt dividend in respect of current year of
US¢28 per share (2021: US¢18) 111.8 71.5
357.0 204.7
6 Earnings per share
Group
6 months ended 12 months ended
31st December 31st December
2022 2021 2022 2021
US$m US$m US$m US$m
Basic and diluted earnings per share
Profit attributable to shareholders 252.3 434.3 739.8 660.6
Weighted average number of ordinary shares in issue (millions) 395.2 395.2 395.2 395.2
Basic earnings per share US¢64 US¢110 US¢187 US¢167
Diluted earnings per share US¢64 US¢110 US¢187 US¢167
Basic and diluted underlying earnings per share
Underlying profit attributable to shareholders 573.8 439.4 1,096.2 785.9
Weighted average number of ordinary shares in issue (millions) 395.2 395.2 395.2 395.2
Basic underlying earnings per share US¢145 US¢111 US¢277 US¢199
Diluted underlying earnings per share US¢145 US¢111 US¢277 US¢199
As at 31st December 2022 and 2021, there were no dilutive potential ordinary
shares in issue.
A reconciliation of the profit attributable to shareholders and underlying
profit attributable to shareholders is as follows:
Group
6 months ended 12 months ended
31st December 31st December
2022 2021 2022 2021
US$m US$m US$m US$m
Profit attributable to shareholders 252.3 434.3 739.8 660.6
Less:
Non-trading items (attributable to shareholders)
Fair value changes of agricultural produce and livestock (3.4) (1.2) (3.4) 1.0
Fair value changes of investment properties (0.9) (1.5) (0.9) (1.5)
Fair value changes of investments (203.2) (11.9) (238.1) (134.3)
Impairment loss on associates and joint ventures (114.0) - (114.0) -
Impairment loss on goodwill on subsidiaries - (1.7) - (1.7)
Other - 11.2 - 11.2
(321.5) (5.1) (356.4) (125.3)
Underlying profit attributable to shareholders 573.8 439.4 1,096.2 785.9
Non-trading items are separately identified to provide greater understanding
of the Group's underlying business performance. Items classified as
non-trading items include: fair value gains or losses on revaluation of
investment properties, agricultural produce and equity investments which are
measured at fair value through profit and loss; gains or losses arising from
sale of businesses, investments and properties; impairment of non-depreciable
intangible assets, associates and joint ventures and other investments;
provisions for closure of businesses; acquisition-related costs in business
combinations and other credits and charges of a non-recurring nature that
require inclusion in order to provide additional insight into the Group's
underlying business performance.
7 Financial Instruments
Financial instruments by category
The fair values of financial assets and financial liabilities, together with
carrying amounts at 31st December 2022 and 2021 are as follows:
Fair
value
through Fair value Financial
Fair value of profit through other assets at Other Total
hedging and comprehensive amortised financial carrying Fair
instruments loss income costs liabilities amount value
US$m US$m US$m US$m US$m US$m US$m
2022
Financial assets
measured at fair value
Other investments
- equity investments - 1,384.3 - - - 1,384.3 1,384.3
- debt investments - - 762.8 - - 762.8 762.8
Derivative financial
instruments 119.8 0.2 - - - 120.0 120.0
119.8 1,384.5 762.8 - - 2,267.1 2,267.1
Financial assets not
measured at fair value
Debtors - - - 7,353.7 - 7,353.7 6,957.6
Bank balances - - - 4,018.1 - 4,018.1 4,018.1
- - - 11,371.8 - 11,371.8 10,975.7
Financial liabilities
measured at fair value
Derivative financial
instruments (2.0) (0.4) - - (2.4) (2.4)
Contingent consideration
payable - (8.8) - - - (8.8) (8.8)
(2.0) (9.2) - - - (11.2) (11.2)
Financial liabilities not
measured at fair value
Borrowings excluding
lease liabilities - - - - (5,948.2) (5,948.2) (5,925.7)
Lease liabilities - - - - (155.6) (155.6) (155.6)
Creditors excluding
non-financial liabilities - - - - (3,936.2) (3,936.2) (3,936.2)
- - - - (10,040.0) (10,040.0) (10,017.5)
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 - - - 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 - - - - (3,075.4) (3,075.4) (3,075.4)
- - - - (9,752.6) (9,752.6) (9,781.7)
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
2022
Assets
Other investments
- equity investments 1,177.6 - 206.7 1,384.3
- debt investments 762.8 - - 762.8
1,940.4 - 206.7 2,147.1
Derivative financial instruments at fair value
- through other comprehensive income - 119.8 - 119.8
- through profit and loss - 0.2 - 0.2
1,940.4 120.0 206.7 2,267.1
Liabilities
Contingent consideration payable - - (8.8) (8.8)
Derivative financial instruments at fair value
- through other comprehensive income - (2.0) - (2.0)
- through profit and loss - (0.4) - (0.4)
- (2.4) - (2.4)
- (2.4) (8.8) (11.2)
Quoted Observable
prices in current
active market Unobservable
markets transactions inputs Total
US$m US$m US$m US$m
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)
There were no transfers among the three categories during the year ended 31st
December 2022 and 2021.
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
2022 2021
US$m US$m
Long-term borrowings:
- secured 7.1 12.8
- unsecured 3,100.8 3,857.5
3,107.9 3,870.3
Current borrowings:
- secured 44.1 164.6
- unsecured 2,796.2 2,525.3
2,840.3 2,689.9
Total borrowings 5,948.2 6,560.2
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$40.5 million (2021: US$92.6 million).
9 Share capital
Group
2022 2021
US$m US$m
Six months ended 31st December
Issued and fully paid:
Balance at 1st July and 31st December
- 395,236,288 (2021: 395,236,288) ordinary shares 1,381.0 1,381.0
Year ended 31st December
Issued and fully paid:
Balance at 1st January and 31st December
- 395,236,288 (2021: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the year.
The Company did not hold any treasury shares as at 31st December 2022 (31st
December 2021: Nil) and did not have any unissued shares under convertibles as
at 31st December 2022 (31st December 2021: Nil).
There were no subsidiary holdings (as defined in the Listing Rules of the
SGX-ST) as at 31st December 2022 (31st December 2021: Nil).
10 Revenue reserve
Group Company
2022 2021 2022 2021
US$m US$m US$m US$m
Movements:
Balance at 1st January 7,374.3 6,937.7 474.1 471.7
Defined benefit pension plans
- remeasurements 5.8 (2.5) - -
- deferred tax (1.2) 0.7 - -
Share of associates' and joint ventures'
remeasurements of defined benefit
pension plans, net of tax 3.7 (2.5) - -
Profit attributable to shareholders 739.8 660.6 220.0 207.1
Dividends paid by the Company (Note 5) (357.0) (204.7) (357.0) (204.7)
Change in shareholding (28.2) (14.9) - -
Other (0.1) (0.1) - -
Balance at 31st December 7,737.1 7,374.3 337.1 474.1
11 Other reserves
Group Company
2022 2021 2022 2021
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 404.8 404.7 - -
Translation reserve (2,397.3) (1,774.6) 334.3 326.2
Fair value reserve 5.8 16.5 - -
Hedging reserve 5.1 (37.0) - -
Other reserve 3.3 3.3 - -
Balance at 31st December (1,978.3) (1,387.1) 334.3 326.2
Movements:
Asset revaluation reserve
Balance at 1st January 404.7 403.4 - -
Surplus on revaluation of assets 0.4 1.3 - -
Other (0.3) - - -
Balance at 31st December 404.8 404.7 - -
Translation reserve
Balance at 1st January (1,774.6) (1,683.7) 326.2 375.9
Translation difference (622.7) (90.9) 8.1 (49.7)
Balance at 31st December (2,397.3) (1,774.6) 334.3 326.2
Fair value reserve
Balance at 1st January 16.5 18.5 - -
Financial assets at FVOCI
- fair value changes (9.8) (1.0) - -
- deferred tax - 0.2 - -
- transfer to profit and loss (0.9) (1.2) - -
Balance at 31st December 5.8 16.5 - -
Hedging reserve
Balance at 1st January (37.0) (86.1) - -
Cash flow hedges
- fair value changes 15.1 40.4 - -
- deferred tax (3.3) (8.1) - -
Share of associates' and joint ventures'
fair value changes of cash flow hedges,
net of tax 30.3 16.8 - -
Balance at 31st December 5.1 (37.0) - -
Other reserve
Balance at 1st January and 31st December 3.3 3.3 - -
12 Non-controlling interests
Group
2022 2021
US$m US$m
Balance at 1st January 9,027.1 8,332.5
Asset revaluation surplus
- surplus on revaluation of assets 0.5 2.0
Financial assets at FVOCI
- fair value changes (10.6) (1.1)
- deferred tax - 0.3
- transfer to profit and loss (1.0) (1.3)
(11.6) (2.1)
Cash flow hedges
- fair value changes 19.6 55.1
- deferred tax (4.3) (11.0)
15.3 44.1
Share of associates' and joint ventures' fair value changes of
cash flow hedges, net of tax 67.3 33.1
Defined benefit pension plans
- remeasurements 7.8 (6.3)
- deferred tax (1.5) 2.0
6.3 (4.3)
Share of associates' and joint ventures' remeasurements of
defined benefit pension plans, net of tax 2.3 (2.7)
Translation difference (718.2) (62.1)
Profit for the year 1,716.1 1,057.7
Issue of shares to non-controlling interests 46.2 36.5
Dividends paid (642.4) (313.8)
Change in shareholding (198.9) (92.5)
Other (0.3) (1.3)
Balance at 31st December 9,309.7 9,027.1
13 Related party transactions
The following significant related party transactions took place during the
year ended 31st December:
Group
2022 2021
US$m US$m
(a) With associates and joint ventures:
Purchase of goods and services (6,087.8) (4,934.5)
Sale of goods and services 1,880.0 1,434.5
Commission and incentives earned 6.2 6.0
Interest received 18.5 18.0
(b) With related companies and
associates of ultimate holding
company:
Management fees paid (4.3) (6.4)
Purchase of goods and services (2.6) (3.2)
Sale of goods and services 2.2 2.2
(c) Remuneration of directors of the
Company and key management
personnel of the Group:
Salaries and other short-term
employee benefits (10.4) (11.2)
14 Commitments
Capital expenditure authorised for at the balance sheet date, but not
recognised in the financial statements is as
follows:
Group
2022 2021
US$m US$m
Authorised and contracted 178.8 106.3
Authorised but not contracted 294.6 282.0
473.4 388.3
15 Cash flows from operating activities
Group
2022 2021
US$m US$m
Profit before tax 3,227.2 2,233.6
Adjustments for:
Financing income (120.0) (126.1)
Financing charges 178.2 178.4
Share of associates' and joint ventures' results after tax (575.4) (590.6)
Amortisation/depreciation of:
- intangible assets 141.8 151.8
- right-of-use assets 141.1 149.7
- property, plant and equipment 694.4 735.0
- bearer plants 28.2 27.3
Impairment of:
- intangible assets 1.1 13.9
- right-of-use assets - 2.0
- property, plant and equipment 45.6 37.7
- debtors 181.3 217.4
Fair value (gain)/loss on:
- investment properties 2.8 3.1
- investments 269.6 130.9
- agricultural produce 11.4 (3.5)
- derivative not qualifying as hedge (0.1) -
(Profit)/loss on disposal of:
- intangible assets 0.9 1.0
- right-of-use assets (0.1) 0.4
- property, plant and equipment (12.0) (20.1)
- investments (1.7) (2.5)
Loss on disposal/write-down of receivables from collateral vehicles 37.3 65.2
Amortisation of borrowing costs for financial services companies 9.1 8.4
Write-down/(reversal of write-down) of stocks 10.0 (2.6)
Gain on modifications to lease term (1.1) (0.4)
Changes in provisions 42.7 4.3
Foreign exchange loss 46.4 21.8
1,131.5 1,002.5
Operating profit before working capital changes 4,358.7 3,236.1
Changes in working capital
Properties for sale (55.0) 10.9
Stocks ((1)) (887.5) (319.8)
Concession rights (25.5) (15.6)
Financing debtors (591.3) (381.3)
Debtors ((2)) (937.5) (416.9)
Creditors ((3)) 1,192.5 979.9
Pensions (10.6) 2.7
(1,314.9) (140.1)
Cash flows from operating activities 3,043.8 3,096.0
(1) Increase in stocks balance mainly due to higher purchases amid higher
sales
(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 2022 mainly included
US$259.8 million for Astra's investment in Bank Jasa Jakarta, US$43.8 million
for Astra's investment in PT Jasamarga Pandaan Malang, a toll road operator in
Indonesia, US$40.9 million for Astra's investment in PT Mobilitas Digital,
US$17.7 million for Astra's investment in PT Arkora Hydropower Plant and
US$33.7 million for additional purchase of shares in Refrigeration Electrical
Engineering Corporation.
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.
(b) Changes in controlling interests in subsidiaries
Change in controlling interests of subsidiaries in 2022 mainly included an
outflow of US$213.9 million for PT United Tractors Tbk shares buyback, US$2.4
million for Astra's acquisition of additional interest in PT Marga
Mandalasakti, US$4.7 million and US$3.7 million for acquisition of additional
interests in Cycle and Carriage Bintang Berhad and Republic Auto Pte Ltd,
respectively.
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$18.8 million for acquisition of
additional interests in Cycle and Carriage Bintang Berhad and Republic Auto
Pte Ltd, respectively.
17 Segment Information
Operating segments are identified on the basis of internal reports about
components of the Group that are regularly reviewed by the Board for the
purpose of resource allocation and performance assessment. The Board considers
Astra as one operating segment because it represents a single direct
investment made by the Company. Decisions for resource allocation and
performance assessment of Astra are made by the Board of the Company while
resource allocation and performance assessment of the various Astra businesses
are made by the board of Astra, taking into consideration the opinions of the
Board of the Company. THACO is identified as another operating segment.
Direct Motor Interests are aggregated into one reportable segment based on the
similar automotive nature of their products and services, while Other
Strategic Interests, comprising the Group's strategic investment portfolio,
are aggregated into another reportable segment based on their exposure to
market-leading companies in key regional economies. Set out below is an
analysis of the segment information.
Underlying businesses performance
Direct Other Non-
Motor Strategic Corporate trading
Astra THACO Interests Interests costs items Group
US$m US$m US$m US$m US$m US$m US$m
6 months ended 31st December 2022
Revenue 10,287.9 - 825.1 - - - 11,113.0
Net operating costs (8,843.2) - (791.0) 27.2 32.4 (380.4) (9,955.0)
Operating profit 1,444.7 - 34.1 27.2 32.4 (380.4) 1,158.0
Financing income 61.4 - 0.5 - 0.5 - 62.4
Financing charges (71.0) - (1.3) - (23.7) - (96.0)
Net financing charges (9.6) - (0.8) - (23.2) - (33.6)
Share of associates' and joint
ventures' results after tax 301.9 30.5 10.2 24.9 - (112.8) 254.7
Profit before tax 1,737.0 30.5 43.5 52.1 9.2 (493.2) 1,379.1
Tax (400.1) - (8.9) - (0.6) (1.8) (411.4)
Profit after tax 1,336.9 30.5 34.6 52.1 8.6 (495.0) 967.7
Non-controlling interests (888.7) - (0.2) - - 173.5 (715.4)
Profit attributable to
shareholders 448.2 30.5 34.4 52.1 8.6 (321.5) 252.3
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 25.3 6.8 33.1 - 10.3 327.0
Profit before tax 1,256.8 25.3 20.8 61.5 (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 25.3 15.5 59.9 (22.3) (9.5) 1,026.8
Non-controlling interests (596.5) - (0.4) - - 4.4 (592.5)
Profit attributable to
shareholders 361.4 25.3 15.1 59.9 (22.3) (5.1) 434.3
Underlying businesses performance
Direct Other Non-
Motor Strategic Corporate trading
Astra THACO Interests Interests costs items Group
US$m US$m US$m US$m US$m US$m US$m
12 months ended 31st December 2022
Revenue 20,204.8 - 1,588.7 - - - 21,793.5
Net operating costs (17,288.9) - (1,534.5) 36.5 (12.8) (283.8) (19,083.5)
Operating profit 2,915.9 - 54.2 36.5 (12.8) (283.8) 2,710.0
Financing income 118.7 - 0.7 - 0.6 - 120.0
Financing charges (141.2) - (2.4) - (34.6) - (178.2)
Net financing charges (22.5) - (1.7) - (34.0) - (58.2)
Share of associates' and joint
ventures' results after tax 529.5 82.8 25.1 50.8 - (112.8) 575.4
Profit before tax 3,422.9 82.8 77.6 87.3 (46.8) (396.6) 3,227.2
Tax (752.4) - (13.8) (1.5) (1.4) (2.2) (771.3)
Profit after tax 2,670.5 82.8 63.8 85.8 (48.2) (398.8) 2,455.9
Non-controlling interests (1,757.6) - (0.9) - - 42.4 (1,716.1)
Profit attributable to
shareholders 912.9 82.8 62.9 85.8 (48.2) (356.4) 739.8
As at 31.12.2022
Net cash/(debt) (excluding
net debt of financial
services companies) 2,348.7 - (3.4) - (1,452.5) 892.8
Total equity 15,496.8 678.8 308.4 658.6 (693.1) 16,449.5
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 61.9 11.8 53.7 - 10.3 590.6
Profit before tax 2,208.6 61.9 54.5 92.6 (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 61.9 43.1 89.6 (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 61.9 38.8 89.6 (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 15,160.6 672.3 281.0 770.0 (488.6) 16,395.3
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
31.12.2022 10,102.5 1,495.2 11,597.7
31.12.2021 10,204.7 1,605.9 11,810.6
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$m
nature of transaction
For the year ended 31st December 2022
Hongkong Land (Singapore) Pte Ltd Associate of the Company's
- Purchase of a motor vehicle controlling shareholder - 0.2
Jardine Matheson Limited Associate of the Company's
- Management support services controlling shareholder - 4.0
- Cyber security services - 0.3
- Business support services (including HR
support and management, and internal
audit and risk management) - 0.2
- Digital and innovation services received 1.1 -
- Digital support and innovation services
provided 0.6 -
Jardine Matheson & Co., Ltd Associate of the Company's
- Human resource and controlling shareholder
administration services - 0.5
The Dairy Farm Company Ltd Associate of the Company's
- Data analytics services controlling shareholder - 0.4
Tan Yen Yen Director of the Company
- Purchase of a motor vehicle 0.2 -
Hongkong Land (Unicode) Associate of the Company's
Investments Limited controlling shareholder
- Subscription of shares in a joint venture 10.4 -
PT Astra Land Indonesia Associate of the Company's
- Subscription of shares by a subsidiary controlling shareholder 10.4 -
22.7 5.6
19 Additional information
Group
6 months ended 31st December 12 months ended 31st December
2022 2021 Change 2022 2021 Change
US$m US$m % US$m US$m %
Astra International
Automotive 168.4 123.8 36 296.8 232.4 28
Financial services 102.2 98.2 4 202.3 172.5 17
Heavy equipment, mining, construction & energy 211.5 121.2 75 423.7 216.9 95
Agribusiness 27.3 38.0 -28 49.6 53.9 -8
Infrastructure & logistics 5.5 (0.8) nm 17.7 2.4 >100
Information technology 1.7 1.8 -6 2.5 2.3 9
Property 2.9 2.8 4 5.4 5.7 -5
519.5 385.0 35 998.0 686.1 45
Less: Withholding tax on dividend (71.3) (23.6) >100 (85.1) (31.3) >100
448.2 361.4 24 912.9 654.8 39
THACO
Automotive 42.1 22.9 84 97.7 54.4 80
Real estate (0.1) 0.1 nm (0.3) 4.7 nm
Agriculture (17.7) (0.6) >100 (25.6) (3.0) >100
Other 6.2 2.9 >100 11.0 5.8 90
30.5 25.3 21 82.8 61.9 34
Direct Motor Interests
Singapore 21.5 9.8 >100 32.9 29.1 13
Malaysia 3.7 0.6 >100 6.9 0.8 >100
Myanmar (3.3) (3.4) -3 (3.3) (5.3) -38
Indonesia (Tunas Ridean) 13.5 9.5 42 28.1 16.4 71
Less: central overheads (1.0) (1.4) -29 (1.7) (2.2) -23
34.4 15.1 >100 62.9 38.8 62
Other Strategic Interests
Siam City Cement (3.4) 14.8 nm 11.6 28.5 -59
REE 28.3 16.7 69 37.7 22.2 70
Vinamilk 27.2 28.4 -4 36.5 38.9 -6
52.1 59.9 -13 85.8 89.6 -4
Corporate costs
Central overheads (9.1) (9.5) -4 (23.0) (20.4) 13
Dividend income from other investments 2.2 2.6 -15 4.8 5.6 -14
Net financing charges (23.1) (9.0) >100 (33.9) (16.9) >100
Exchange differences 38.6 (6.4) nm 3.9 (27.5) nm
8.6 (22.3) nm (48.2) (59.2) -19
Underlying profit attributable to shareholders 573.8 439.4 31 1,096.2 785.9 39
20 Dividend and closure of books
NOTICE IS HEREBY GIVEN that, subject to shareholders' approval being obtained
at the forthcoming 54th Annual General Meeting of the Company ("AGM") for the
proposed final one-tier tax-exempt dividend of US$0.83 per share for the
financial year ended 31st December 2022 (the "Final Dividend"), the Transfer
Books and Register of Members of the Company will be closed from 5.00 p.m. on
Tuesday, 30th May 2023 (the "Record Date") up to, and including Wednesday,
31st May 2023, 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 30th June 2023.
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 2023 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 2022 can be accessed through the internet at
'www.jcclgroup.com'.
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