REG - Jardine Matheson Hdg - JC&C - 2023 FY Results and Dividend
27/02/2024 11:00
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RNS Number : 6248E Jardine Matheson Hldgs Ltd 27 February 2024
To: Business Editor 27th February 2024
For immediate release
Jardine Cycle & Carriage Limited
2023 Financial Statements and Dividend Announcement
The following announcement was issued today by the Company's 78.1%-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
27th February 2024
JARDINE CYCLE & CARRIAGE LIMITED
2023 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT
Highlights
· Underlying profit of US$1,160 million, 6% higher than 2022
· Improved performances from Astra and Direct Motor Interests
· THACO performance impacted by softer Vietnamese economy
· Stable contribution from Other Strategic Interests
· Proposed final dividend of US¢90 per share, total dividend of
US¢118 for the year, 6% higher than 2022
"The Group posted another very strong overall underlying profit performance in
2023, principally reflecting Astra's second year of record profit, despite
softer commodity prices and moderating growth in the second half of the year.
Our Vietnamese businesses, however, were adversely impacted by slower economic
growth. The Group's businesses remain focused on their strategic priorities to
build a solid foundation for long-term growth."
Ben Keswick, Chairman
Group Results
Year ended 31st December
2023 2022 Change 2023
US$m US$m % S$m
Revenue 22,235 21,566 3% 29,819
Underlying profit attributable to
shareholders * 1,160 1,096 6% 1,556
Non-trading items^ 55 (356) nm 74
Profit attributable to shareholders 1,215 740 64% 1,630
US¢ US¢ S¢
Underlying earnings per share * 294 277 6% 394
Earnings per share 308 187 64% 412
Dividends per share 118 111 6% 158
US$ US$ S$
Net asset value per share 20 18 13% 27
The exchange rate of US$1=S$1.32 (31st December 2022: US$1=S$1.34) was used
for translating assets and liabilities at the balance sheet date, and
US$1=S$1.34 (2022: US$1=S$1.38) was used for translating the results for the
period. The financial results for the year ended 31st December 2023 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") saw strong underlying
profit growth of 6% in 2023, mainly supported by record results from Astra.
Astra contributed US$1,019 million to the Group's underlying profit, 12%
higher than the previous year, reflecting improved performances from most of
its businesses.
Direct Motor Interests contributed US$68 million, an increase of 8%, with
higher profits from Tunas Ridean in Indonesia and Cycle & Carriage Bintang
in Malaysia.
The contribution from the Group's Other Strategic Interests was 2% down at
US$84 million, due to lower earnings reported by Refrigeration Engineering
Electrical ("REE"), offset by higher profits in Siam City Cement ("SCCC").
Truong Hai Group Corporation ("THACO") contributed US$36 million, 57% down
from the previous year, mainly due to lower automotive profits.
Corporate costs fell from US$48 million to US$47 million, mainly due to the
translation of foreign currency loans, which led to a US$18 million increase
in foreign exchange gains, partly offset by a US$13 million increase in net
financing charges.
The Group's underlying profit attributable to shareholders increased by 6% to
US$1,160 million. After accounting for non-trading items, the Group's profit
attributable to shareholders was US$1,215 million, 64% higher than the
previous year. The non-trading items recorded in the year mainly comprised a
US$81 million gain from the sale and leaseback of properties under Cycle &
Carriage Singapore, partly offset by unrealised fair value losses of US$20
million related to non-current investments.
The Group's consolidated net debt position, excluding the net borrowings
within Astra's financial services subsidiaries, was US$1,145 million at the
end of 2023, compared to a net cash position of US$893 million at the end of
2022. This increase was mainly due to the deployment of capital at Astra in a
number of strategic projects as well as continued investment in the organic
capital expenditure needs of its ongoing businesses, and enhanced dividends
paid in 2023 at Astra. Net debt within Astra's financial services
subsidiaries increased from US$2.8 billion at the end of 2022 to US$3.4
billion. JC&C corporate net debt was US$1.3 billion, down from US$1.5
billion at the end of 2022.
Dividends
The Board is recommending a final one-tier tax-exempt dividend of US¢90 per
share (2022: US¢83 per share) which, together with the interim dividend of
US¢28 per share (2022: US¢28 per share), will produce a total dividend for
the year of US¢118 per share (2022: US¢111 per share), 6% higher than 2022.
Sustainability
JC&C is a long-term investor in Southeast Asia and remains committed to
the region's development. We firmly believe in sustainable growth to deliver
positive impact to the communities we serve, and we continue to commit to
embedding sustainability as a core component of our overall corporate
strategy.
The Group is focussing in particular on decarbonising our businesses and
enhancing the long-term resilience of our portfolio. This involves making
increased investments, which support the transition to a low-carbon future.
Moving forward, we plan to continue maximising our renewable energy
generation on-site, as well as exploring electrification opportunities.
People
On behalf of the Board, I would like to express our appreciation to our teams
across the region for their continuing dedication and effort.
I would like to welcome Mikkel Larsen, who joined the Board in January 2024
and was also appointed as a member of the Audit & Risk Committee. Mikkel
is currently the Chief Executive Officer of Climate Impact X, a global
exchange and marketplace for high-quality carbon credits. We look forward to
Mikkel's contribution to the Group.
Outlook
The Group expects a challenging year ahead in view of lower commodity prices
and only a mild recovery of sentiment in Vietnam. The Group's businesses,
nevertheless, have made good progress in 2023 and will remain focused on their
strategic priorities to build a solid foundation for strong long-term growth.
Ben Keswick
Chairman
GROUP MANAGING DIRECTOR'S REVIEW
Group Review
The Group achieved an underlying profit growth of 6% in 2023, mainly due to a
strong performance in the first half of the year. Growth in the second half of
the year slowed to 1% compared to the same period in the previous year,
reflecting mainly the decline in commodity prices. 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
2023 2022 Change
Business segments US$m US$m %
Astra 1,019 913 12%
THACO 36 83 -57%
Direct Motor Interests 68 63 8%
Other Strategic Interests 84 86 -2%
Corporate Costs - exchange gains/(losses) 22 4 464%
Corporate Costs - others (69) (53) 30%
Underlying profit attributable to Shareholders
1,160 1,096 6%
Astra
Astra contributed US$1,019 million to JC&C's underlying profit, 12% higher
than the previous year, due to stronger performances from most of its
businesses, particularly its automotive and financial services operations.
Total unrealised fair value losses of US$5 million in respect of its GoTo and
Hermina investments were reported under JC&C's non-trading items.
Automotive
Net income increased by 18% to US$750 million, reflecting higher sales volumes
in the motorcycle and components businesses.
· The wholesale car market decreased by 4% to 1.0 million units in
2023. Astra's car sales were 2% lower at 561,000 units, while its market
share rose from 55% to 56%.
· Two new hybrid electric models ("HEV") and one new battery electric
model ("BEV") were launched in the year, bringing the number of BEV car models
that Astra sells in Indonesia to six and the number of HEV car models to 13,
under the Toyota, Lexus and BMW brands.
· The wholesale market for motorcycles increased by 19% to 6.2
million units in 2023. Astra's Honda motorcycle sales were 22% higher at 4.9
million units. The low base in the previous year was due to production
constraints caused by semiconductor supply issues. Astra's market share
increased from 77% to 78%.
· Astra launched a new BEV motorcycle model, the EM1e, during the
year.
· Components business, Astra Otoparts, reported a 39% increase in net
income to US$121 million, mainly due to improved operating margins and higher
contributions from its associates.
Financial Services
Net income increased by 30% to US$516 million, due to higher contributions
from Astra's consumer finance businesses.
· Consumer finance businesses saw a 15% increase in new amounts
financed to US$7.7 billion. Supported by larger loan portfolios and lower
loan loss provisions, the net income contribution from the group's car-focused
finance companies increased by 24% to US$150 million, and the contribution
from the motorcycle-focused financing business increased by 29% to US$269
million.
· General insurance company, Asuransi Astra Buana, reported a 14%
increase in net income to US$92 million, primarily due to higher insurance
revenue.
Heavy Equipment, Mining, Construction and Energy
Net income was stable at US$832 million, mainly due to improved profits from
heavy equipment and mining contracting businesses, which offset lower earnings
from its coal and gold mining businesses.
· Komatsu heavy equipment sales were 8% lower at 5,300 units,
although revenue from the parts and service businesses was higher.
· Mining contracting operations saw a 21% increase in overburden
removal volume at 1,158 million bank cubic metres, while coal production
increased by 11% to 129 million tonnes.
· Coal mining subsidiaries reported a 19% increase in coal sales at
11.8 million tonnes, but revenue declined due to lower coal prices.
· Agincourt Resources reported a 39% decrease in gold sales at
175,000 oz.
Agribusiness
Net income decreased by 39% to US$55 million, mainly as a result of lower
crude palm selling prices, partly offset by higher sales.
Infrastructure and Logistics
Astra's infrastructure and logistics division reported an 85% increase in net
profit to US$64 million, primarily due to improved performance in its toll
road businesses, which saw a 7% 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$36 million, 57% down from the previous year.
Its automotive profits were significantly lower, which reflected the slowdown
of Vietnam's economy, weakened consumer sentiment and greater competitive
pressure. Unit sales were 28% down, with a market share decline from 23% to
21%. Losses from its agricultural operations were, however, lower than the
previous year.
Direct Motor Interests
The Group's Direct Motor Interests contributed a US$68 million profit, 8%
higher than the previous year.
· Cycle & Carriage Singapore's contribution was 24% down at US$25
million, due to lower new vehicle and used car sales amidst a tight COE cycle
and increased competitive pressure, partly offset by improved aftersales
profitability. New passenger car sales volume fell by 3% to 5,603 units, and
market share decreased from 19% to 18%.
· In Indonesia, Tunas Ridean contributed US$39 million profit, 39%
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$9 million, 25% higher than the previous year, mainly due to improved
margins.
Other Strategic Interests
The Group's Other Strategic Interests contributed a US$84 million profit, 2%
lower than the previous year.
· SCCC's contribution increased by 43% to US$17 million, as the prior
year results included the effect of higher deferred tax liabilities due to an
increase in tax rates in Sri Lanka in 2022. Excluding this one-off effect,
SCCC's contribution would have been 1% lower than the prior year, as the
business continued to be adversely impacted by lower sales volume, partly
offset by lower operating costs.
· REE's contribution declined by 16% to US$32m, due to less
favourable weather conditions resulting in lower profits from its renewable
energy investments.
· The Group's investment in Vinamilk produced a slightly lower
dividend income of US$36 million, compared to US$37 million in the previous
year. Vinamilk reported a 4% increase in net profit, mainly due to lower
input costs, partly offset by higher selling and marketing expenses.
Corporate Costs
Corporate costs totalled US$47 million, compared to US$48 million in the
previous year. The improvement was mainly due to a US$18 million increase in
foreign exchange gains from the translation of foreign currency loans, partly
offset by a US$13 million increase in net financing charges.
Strategic Developments
Astra
Astra continued to make good progress in 2023 in strategically deploying
capital towards a diversification away from coal. United Tractors completed
the acquisition of interests in two nickel mining and processing businesses in
the period: a 19.99% interest in Nickel Industries for around US$616 million
and a 90% effective interest in Stargate Pasific Resources and Stargate
Mineral Asia, for a total of US$319 million. United Tractors also acquired a
49.6% interest in Supreme Energy Sriwijaya, which indirectly operates a
geothermal project with an existing capacity of 2 X 49 MW, for US$52 million.
As part of its digital transformation strategy, Astra has acquired Tokobagus,
a company operating the leading online used car platform in Indonesia under
the OLX brand. Astra has also partnered with Equinix, one of the world's
largest digital infrastructure companies, to develop data centres in
Indonesia.
In pursuing its healthcare strategy, Astra invested an additional US$100
million in Halodoc, a leading digital health ecosystem platform in Indonesia,
bringing its total investment to US$135 million and its ownership to 21.0%.
Direct Motor Interests
In Singapore, the Group completed a sale and leaseback arrangement in respect
of its properties for US$225 million. It also entered into a used car and
aftersales partnership with Carro, a leading digital used car platform.
In Malaysia, Cycle & Carriage Bintang's business has transitioned to the
Mercedes-Benz agency model, starting from 2024.
Other Strategic Interests
The current operating environment in Vietnam remains challenging, but
management remains optimistic that the Group's partners will be able to take
advantage of mid-term growth opportunities under this difficult market.
JC&C increased its support for THACO in the near term by investing around
US$350 million through a subscription for a five-year convertible bond.
JC&C has also increased its interest in REE from 33.6% to 34.9% through a
series of on-market purchases, for around US$14 million.
Summary
The Group achieved a good set of results in 2023, benefitting from the
strength of its market-leading businesses and the performance of its overall
portfolio. The Group's businesses remain focused on their strategic priorities
to build a solid foundation for long-term growth.
Ben Birks
Group Managing Director
CORPORATE PROFILE
Jardine Cycle & Carriage ("JC&C" or "the Group") is the investment
holding company of the Jardine Matheson Group ("Jardines") in Southeast Asia.
Listed on the Mainboard of the Singapore Exchange and a constituent of the
Straits Times Index, the Group is 78%-owned by Jardines.
By investing in the region's market leaders, we aim to deliver sustainable
growth to create evermore opportunities for the people and communities of
Southeast Asia. The JC&C regional portfolio includes Astra, THACO, Direct
Motor Interests and Other Strategic Interests. Together with our subsidiaries
and associates, the Group provides over 240,000 jobs across the region.
For more information on JC&C and our businesses, visit www.jcclgroup.com
(http://www.jcclgroup.com) .
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the six months and full year ended
31st December 2023
6 months ended 31st December 12 months ended 31st December
Restated Restated
2023 2022 Change 2023 2022 Change
Note US$m US$m % US$m US$m %
Revenue ((1)) 2 10,548.9 10,998.3 -4 22,234.5 21,565.5 3
Net operating costs 3 (9,106.6) (9,840.3) -7 (19,130.3) (18,855.5) 2
Operating profit 3 1,442.3 1,158.0 25 3,104.2 2,710.0 15
Financing income 72.5 62.4 16 149.0 120.0 24
Financing charges ((2)) (163.5) (96.0) 70 (271.5) (178.2) 52
Net financing charges (91.0) (33.6) >100 (122.5) (58.2) >100
Share of associates' and joint
ventures' results after tax 378.2 254.7 48 732.8 575.4 27
Profit before tax 1,729.5 1,379.1 25 3,714.5 3,227.2 15
Tax 4 (360.4) (411.4) -12 (737.8) (771.3) -4
Profit after tax 1,369.1 967.7 41 2,976.7 2,455.9 21
Profit attributable to:
Shareholders of the Company 567.1 252.3 >100 1,215.4 739.8 64
Non-controlling interests 802.0 715.4 12 1,761.3 1,716.1 3
1,369.1 967.7 41 2,976.7 2,455.9 21
US¢ US¢ US¢ US¢
Earnings per share:
- basic 6 143 64 >100 308 187 65
- diluted 6 143 64 >100 308 187 65
(1) Higher revenue was mainly due to higher sales in Astra's automotive,
financial services, heavy equipment and contract mining operations.
(2) Increase in finance charges mainly due to higher interest rate and
higher level of net debt.
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the six months and full
year ended 31st December 2023
6 months ended 12 months ended
31st December 31st December
Restated Restated
2023 2022 2023 2022
US$m US$m US$m US$m
Profit for the year 1,369.1 967.7 2,976.7 2,455.9
Items that will not be reclassified to profit and loss:
Translation difference (218.1) (417.4) 145.5 (718.2)
Asset revaluation
- surplus during the year - 0.9 - 0.9
Remeasurements of defined benefit pension plans (1.5) 12.9 (1.5) 13.6
Tax relating to items that will not be reclassified 0.4 (2.5) 0.6 (2.7)
Share of other comprehensive income/(expense) of
associates and joint ventures, net of tax 9.7 4.6 9.5 6.0
(209.5) (401.5) 154.1 (700.4)
Items that may be reclassified subsequently to
profit and loss:
Translation difference
- gain/(loss) arising during the year (177.9) (341.8) 85.1 (622.7)
Financial assets at FVOCI ((1))
- loss arising during the year (12.6) (8.4) (11.6) (20.4)
- transfer to profit and loss - - - (1.9)
(12.6) (8.4) (11.6) (22.3)
Cash flow hedges
- gain arising during the year 6.3 9.0 11.4 34.7
Tax relating to items that may be reclassified (0.9) (2.1) (2.0) (7.6)
Share of other comprehensive income/(expense) of
associates and joint ventures, net of tax (4.5) 23.5 0.6 97.6
(189.6) (319.8) 83.5 (520.3)
Other comprehensive income/(expense) for the year (399.1) (721.3) 237.6 (1,220.7)
Total comprehensive income for the year 970.0 246.4 3,214.3 1,235.2
Attributable to:
Shareholders of the Company 389.7 (76.2) 1,305.5 157.2
Non-controlling interests 580.3 322.6 1,908.8 1,078.0
970.0 246.4 3,214.3 1,235.2
((1)) Fair value through other comprehensive income ("FVOCI")
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 31st December 2023
Restated
Note 2023 2022
US$m US$m
Non-current assets
Intangible assets 1,715.2 1,632.5
Right-of-use assets 827.9 733.2
Property, plant and equipment 4,989.8 3,692.4
Investment properties 463.0 455.9
Bearer plants 480.7 464.7
Interests in associates and joint ventures 5,642.0 4,576.1
Non-current investments 2,572.2 2,128.9
Non-current debtors 3,683.2 3,088.4
Deferred tax assets 455.5 403.5
20,829.5 17,175.6
Current assets
Current investments 55.0 18.2
Properties for sale 554.0 400.2
Stocks 2,599.4 2,130.2
Current debtors 5,493.0 5,421.4
Current tax assets 80.2 69.2
Cash and bank balances
- non-financial services companies 2,421.8 3,645.7
- financial services companies 360.7 372.4
2,782.5 4,018.1
11,564.1 12,057.3
Total assets 32,393.6 29,232.9
Non-current liabilities
Non-current creditors 198.1 163.1
Non-current provisions 234.7 207.3
Non-current lease liabilities 234.6 87.6
Long-term borrowings 8
- non-financial services companies 2,252.9 1,575.5
- financial services companies 1,646.4 1,532.4
3,899.3 3,107.9
Deferred tax liabilities 468.1 385.9
Pension liabilities 346.3 337.9
5,381.1 4,289.7
Current liabilities
Current creditors 5,378.4 5,135.9
Current provisions 117.0 107.2
Current lease liabilities 80.8 68.0
Current borrowings 8
- non-financial services companies 1,314.0 1,177.4
- financial services companies 2,094.3 1,662.9
3,408.3 2,840.3
Current tax liabilities 212.7 279.4
9,197.2 8,430.8
Total liabilities 14,578.3 12,720.5
Net assets 17,815.3 16,512.4
Equity
Share capital 9 1,381.0 1,381.0
Revenue reserve 10 8,545.0 7,768.6
Other reserves 11 (1,886.6) (1,978.3)
Shareholders' funds 8,039.4 7,171.3
Non-controlling interests 12 9,775.9 9,341.1
Total equity 17,815.3 16,512.4
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the year ended 31st December
2023
Attributable to shareholders of the Company
Share Revenue Asset Translation Fair value Total Attributable Total
capital reserve revaluation reserve and other US$m to non- equity
US$m US$m reserve US$m reserves controlling US$m
US$m US$m interests
US$m
2023
Balance at 1st January as restated 1,381.0 7,768.6 404.8 (2,397.3) 14.2 7,171.3 9,341.1 16,512.4
Total comprehensive income - 1,213.8 5.3 85.1 1.3 1,305.5 1,908.8 3,214.3
Dividends paid by the Company - (442.9) - - - (442.9) - (442.9)
Dividends paid to non-controlling interests - - - - - - (1,682.7) (1,682.7)
Issue of shares to non-controlling interests - - - - - - 156.4 156.4
Change in shareholding - (3.1) - - - (3.1) 3.4 0.3
Acquisition of subsidiaries - - - - - - 39.4 39.4
Other - 8.6 - - - 8.6 9.5 18.1
Balance at 31st December 1,381.0 8,545.0 410.1 (2,312.2) 15.5 8,039.4 9,775.9 17,815.3
2022 Restated
Balance at 1st January as
previously reported 1,381.0 7,374.3 404.7 (1,774.6) (17.2) 7,368.2 9,027.1 16,395.3
Effect of adoption of IFRS 17 - 31.5 - - - 31.5 31.4 62.9
Balance at 1st January as restated 1,381.0 7,405.8 404.7 (1,774.6) (17.2) 7,399.7 9,058.5 16,458.2
Total comprehensive income - 748.1 0.4 (622.7) 31.4 157.2 1,078.0 1,235.2
Dividends paid by the Company - (357.0) - - - (357.0) - (357.0)
Dividends paid to non-controlling interests - - - - - - (642.4) (642.4)
Issue of shares to non-controlling interests - - - - - - 46.2 46.2
Change in shareholding - (28.2) - - - (28.2) (198.9) (227.1)
Other - (0.1) (0.3) - - (0.4) (0.3) (0.7)
Balance at 31st December 1,381.0 7,768.6 404.8 (2,397.3) 14.2 7,171.3 9,341.1 16,512.4
Jardine Cycle & Carriage Limited
Company Balance Sheet at 31st December 2023
Note 2023 2022
US$m US$m
Non-current assets
Property, plant and equipment 33.7 33.6
Interests in subsidiaries 1,457.9 1,432.7
Interests in associates and joint ventures 881.3 864.3
Non-current investment 681.2 197.6
Non-current debtors 2.3 -
3,056.4 2,528.2
Current assets
Current debtors 1,103.9 1,115.4
Bank balances and other liquid funds 26.8 72.6
1,130.7 1,188.0
Total assets 4,187.1 3,716.2
Non-current liabilities
Long-term borrowings 400.0 877.5
Deferred tax liabilities 6.5 6.2
406.5 883.7
Current liabilities
Current creditors 305.7 118.4
Current borrowings 883.4 660.0
Current tax liabilities 2.0 1.7
1,191.1 780.1
Total liabilities 1,597.6 1,663.8
Net assets 2,589.5 2,052.4
Equity
Share capital 9 1,381.0 1,381.0
Revenue reserve 10 823.1 337.1
Other reserves 11 385.4 334.3
Total equity 2,589.5 2,052.4
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the six months and full year
ended 31st December 2023
6 months ended 12 months ended
31st December 31st December
2023 2022 2023 2022
US$m US$m US$m US$m
Profit for the year 178.6 6.4 928.9 220.0
Items that may be reclassified subsequently to
profit and loss:
Translation difference
- gain arising during the year 70.3 71.0 48.8 8.1
Cash flow hedges
- gain arising during the year 2.3 - 2.3 -
Other comprehensive income for the year 72.6 71.0 51.1 8.1
Total comprehensive income for the year 251.2 77.4 980.0 228.1
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the year ended 31st December 2023
Share Revenue Hedging Translation Total
capital reserve reserve reserve equity
US$m US$m US$m US$m US$m
2023
Balance at 1st January 1,381.0 337.1 - 334.3 2,052.4
Total comprehensive income/(expense) - 928.9 2.3 48.8 980.0
Dividends paid - (442.9) - - (442.9)
Balance at 31st December 1,381.0 823.1 2.3 383.1 2,589.5
2022
Balance at 1st January 1,381.0 474.1 - 326.2 2,181.3
Total comprehensive income/(expense) - 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
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the year ended 31st December 2023
2023 2022
Note US$m US$m
Cash flows from operating activities
Cash generated from operations 15 3,047.9 3,043.8
Interest paid (257.3) (90.9)
Interest received 146.1 122.5
Other finance costs paid (15.2) (38.7)
Income taxes paid (956.4) (681.9)
(1,082.8) (689.0)
Dividends received from associates and
joint ventures (net) 506.1 495.7
(576.7) (193.3)
Net cash flows from operating activities 2,471.2 2,850.5
Cash flows from investing activities
Sale of intangible assets 0.1 2.2
Sale of right-of-use assets 0.7 0.2
Sale of property, plant and equipment 257.6 35.5
Sale of investments 156.6 226.7
Purchase of intangible assets (77.6) (118.6)
Additions to right-of-use assets (31.2) (24.0)
Purchase of property, plant and equipment (1,421.8) (727.3)
Purchase of investment properties (0.3) (0.8)
Additions to bearer plants (34.2) (39.4)
Purchase of subsidiaries, net of cash acquired (423.9) -
Purchase of shares in associates and joint ventures (819.7) (397.6)
Purchase of investments (645.2) (481.0)
Net cash flows from investing activities (3,038.9) (1,524.1)
Cash flows from financing activities
Drawdown of loans 5,273.1 3,058.9
Repayment of loans (3,916.3) (3,384.3)
Principal elements of lease payments (109.8) (86.6)
Changes in controlling interests in subsidiaries (1.7) (224.7)
Investments by non-controlling interests 156.4 46.2
Dividends paid to non-controlling interests (1,682.7) (642.4)
Dividends paid by the Company (442.9) (357.0)
Net cash flows from financing activities (723.9) (1,589.9)
Net change in cash and cash equivalents (1,291.6) (263.5)
Cash and cash equivalents at the beginning of the year 4,018.1 4,588.8
Effect of exchange rate changes 56.0 (307.2)
Cash and cash equivalents at the end of the year ((1)) 2,782.5 4,018.1
(1) 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 2023
1 Basis of preparation
The financial statements are consistent with those set out in the 2022 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 2023 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 2023. There have
been no changes to the accounting policies described in the 2022 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$1.3185 (2022: US$1=S$1.3445), US$1=RM4.5872 (2022: US$1=
RM4.4125), US$1=IDR15,416 (2022: US$1= IDR15,731), US$1=VND24,276 (2022:
US$1=VND23,627) and US$1=THB34.211 (2022: US$1= THB34.560).
The exchange rates used for translating the results for the period are
US$1=S$1.3411 (2022: US$1=S$1.3796), US$1=RM4.5631 (2022: US$1=RM4.4104),
US$1=IDR15,217 (2022: US$1=IDR14,922), US$1=VND23,877 (2022: US$1=VND23,465)
and US$1=THB34.776 (2022:
US$1=THB35.173).
Interpretations and amendments to published standard effective in 2023
The Group has adopted the following standard and amendments for the annual
reporting period commencing 1st January 2023.
IFRS 17 Insurance Contracts (effective from 1st January 2023)
The standard covers recognition, measurement, presentation and disclosure for
insurance contracts and is applicable to the Group's insurance businesses in
Indonesia. Prior to the adoption of IFRS 17, profits were recognised in the
profit and loss on initial recognition of certain insurance contracts. Under
IFRS 17, all profits are recognised in the profit and loss over the life of
the contracts as insurance services are provided. The adoption of IFRS 17
resulted in certain restatements to the Group's financial statements.
The effect of adopting IFRS 17 on the consolidated financial statement for the
year ended 31st December 2022 were as follows:
(a) On the profit and loss account
Adjustment
As upon
previously adoption
reported of IFRS 17 Restated
US$m US$m US$m
Revenue 21,793.5 (228.0) 21,565.5
Net operating cost (19,083.5) 228.0 (18,855.5)
Operating profit 2,710.0 - 2,710.0
(b) On the consolidated balance sheet
Adjustment
As upon
previously adoption
reported of IFRS 17 Restated
US$m US$m US$m
Intangible assets 1,675.4 (42.9) 1,632.5
Deferred tax assets 404.0 (0.5) 403.5
Non-current debtors 3,041.5 46.9 3,088.4
Current debtors 5,495.2 (73.8) 5,421.4
Non-current creditors 154.5 8.6 163.1
Current creditors 5,276.9 (141.0) 5,135.9
Current tax liabilities 280.2 (0.8) 279.4
Shareholders' funds 7,139.8 31.5 7,171.3
Non-controlling interests 9,309.7 31.4 9,341.1
The consolidated balance sheet on 1st January 2022 is not presented, as the
impact of adoption of IFRS17 is not significant.
Other than as detailed above, there is no other material impact to the Group's
consolidated financial statements upon adoption of the standard.
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.
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice
Statement 2 (effective from 1st January 2023)
The amendments require entities to disclose material rather than significant
accounting policies. The amendments define what is 'material accounting policy
information' and explain how to identify when accounting policy information is
material. Material accounting policy information is information that, when
considered together with other information included in an entity's financial
statements, can reasonably be expected to influence decisions that the primary
users of general purpose financial statements make on the basis of those
financial statements. IASB further clarifies that immaterial accounting policy
information does not need to be disclosed. If it is disclosed, it should not
obscure material accounting information. To support this amendment, the IASB
also amended IFRS Practice Statement 2 Making Materiality Judgements to
provide guidance on how to apply the concept of materiality to accounting
policy disclosures.
Amendment to IAS 12 - Deferred Tax related to Assets and Liabilities arising
from a Single Transaction (effective from 1st January 2023)
The amendment requires deferred tax to be recognised on transactions that, on
initial recognition, give rise to equal amounts of taxable and deductible
temporary differences. They typically apply to transactions such as leases of
lessees and decommissioning obligations and require the recognition of
additional deferred tax assets and liabilities. The Group applied the
amendment from 1st January 2023 and there is no material impact on the Group's
consolidated financial statements.
Amendment to IAS 12 - International Tax Reform - Pillar Two Model Rules
(effective for annual reporting period commencing on or after 1st January
2023)
The amendment provides a temporary mandatory exception from deferred tax
accounting in respect of Pillar Two income taxes and certain additional
disclosure requirements. The Group is within the scope of the OECD Pillar Two
model rules, and has applied the amendment from 1st January 2023.
Pillar Two legislation has been enacted or substantially enacted in certain
jurisdictions in which the Group operates. The legislation will be effective
for the Group's annual reporting period commencing 1st January 2024. Since the
Pillar Two legislation was not effective at 31st December 2023, the Group has
no related current tax exposure.
The Group is in scope of the enacted or substantively enacted legislation and
has performed an assessment of the Group's potential exposure to Pillar Two
income taxes when the legislation comes into effect. The assessment of the
potential exposure to Pillar Two income taxes is based on the latest financial
information for the year ended 31st December 2023 of the constituent entities
in the Group. The Group does not expect a material exposure to Pillar Two
income taxes in those jurisdictions.
There are no other amendments which are effective in 2023 and relevant to the
Group's operations, that have a significant impact on the Group's results,
financial position and accounting policies.
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 2023.
2 Revenue
6 months ended 31st December
Direct
Motor
Astra Interests Total
US$m US$m US$m
Group
2023
Property 35.3 - 35.3
Motor vehicles 3,969.4 769.8 4,739.2
Financial services 809.5 - 809.5
Heavy equipment, mining, construction & energy 3,866.6 - 3,866.6
Other 1,098.3 - 1,098.3
9,779.1 769.8 10,548.9
From contracts with customers:
Recognised at a point in time 8,637.1 746.7 9,383.8
Recognised over time 169.8 19.5 189.3
8,806.9 766.2 9,573.1
From other sources:
Rental income from investment properties 2.8 - 2.8
Revenue from financial services companies 809.5 - 809.5
Other 159.9 3.6 163.5
972.2 3.6 975.8
9,779.1 769.8 10,548.9
2022 Restated
Property 32.5 - 32.5
Motor vehicles 4,224.7 825.1 5,049.8
Financial services 780.7 - 780.7
Heavy equipment, mining, construction & energy 4,095.7 - 4,095.7
Other 1,039.6 - 1,039.6
10,173.2 825.1 10,998.3
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 780.7 - 780.7
Other 129.9 2.5 132.4
922.2 2.5 924.7
10,173.2 825.1 10,998.3
12 months ended 31st December
Direct
Motor
Astra Interests Total
US$m US$m US$m
Group
2023
Property 57.8 - 57.8
Motor vehicles 8,300.5 1,629.2 9,929.7
Financial services 1,757.5 - 1,757.5
Heavy equipment, mining, construction & energy 8,428.8 - 8,428.8
Other 2,060.7 - 2,060.7
20,605.3 1,629.2 22,234.5
From contracts with customers:
Recognised at a point in time 18,234.1 1,578.3 19,812.4
Recognised over time 317.4 44.0 361.4
18,551.5 1,622.3 20,173.8
From other sources:
Rental income from investment properties 10.0 - 10.0
Revenue from financial services companies 1,757.5 - 1,757.5
Other 286.3 6.9 293.2
2,053.8 6.9 2,060.7
20,605.3 1,629.2 22,234.5
2022 Restated
Property 64.6 - 64.6
Motor vehicles 7,999.1 1,588.7 9,587.8
Financial services 1,551.6 - 1,551.6
Heavy equipment, mining, construction & energy 8,261.3 - 8,261.3
Other 2,100.2 - 2,100.2
19,976.8 1,588.7 21,565.5
From contracts with customers:
Recognised at a point in time 17,946.2 1,518.3 19,464.5
Recognised over time 213.0 65.9 278.9
18,159.2 1,584.2 19,743.4
From other sources:
Rental income from investment properties 12.3 - 12.3
Revenue from financial services companies 1,551.6 - 1,551.6
Other 253.7 4.5 258.2
1,817.6 4.5 1,822.1
19,976.8 1,588.7 21,565.5
3 Net operating costs and operating profit
Group
6 months ended 12 months ended
31st December 31st December
Restated Restated
2023 2022 Change 2023 2022 Change
US$m US$m % US$m US$m %
Cost of sales and services rendered (8,050.6) (8,500.4) -5 (17,185.4) (16,657.1) 3
Other operating income 139.4 53.3 >100 359.5 258.0 39
Selling and distribution expenses (422.5) (452.2) -7 (861.7) (890.4) -3
Administrative expenses (663.5) (604.3) 10 (1,282.3) (1,178.6) 9
Other operating expenses (109.4) (336.7) -68 (160.4) (387.4) -59
(9,106.6) (9,840.3) -7 (19,130.3) (18,855.5) 2
Operating profit is determined after including:
Amortisation/depreciation of:
- intangible assets (31.3) (74.7) -58 (97.5) (141.8) -31
- right-of-use assets (80.0) (77.6) 3 (154.5) (141.1) 9
- property, plant and equipment (395.4) (352.5) 12 (754.9) (694.4) 9
- bearer plants (15.2) (13.9) 9 (30.1) (28.2) 7
(Impairment)/write-back of:
- intangible assets (34.1) (1.1) >100 (34.1) (1.1) >100
- property, plant and equipment 0.6 (45.7) nm 1.1 (45.6) nm
- debtors (71.5) (92.3) -36 (123.8) (181.3) -38
Fair value gain/(loss) on:
- investment properties (2.7) (2.8) -4 (2.7) (2.8) -4
- investments ((1)) (38.6) (366.3) -89 (29.5) (269.6) -89
- agricultural produce 0.4 (11.3) nm 1.6 (11.4) nm
- derivative not qualifying as hedge (0.2) - nm (0.1) 0.1 nm
Profit/(loss) on disposal of:
- intangible assets (0.5) (0.6) -17 (0.5) (0.9) -44
- right-of-use assets 0.6 0.1 >100 0.6 0.1 >100
- property, plant and equipment ((2)) 6.2 0.7 >100 77.1 12.0 >100
- investments 0.1 0.1 0 0.6 1.7 -65
Negative goodwill on acquisition of subsidiaries 2.2 - nm 2.2 - nm
Loss on disposal/write-down of receivables from
collateral vehicles (32.2) (14.5) >100 (54.8) (37.3) 47
Write-down of stocks (7.9) (8.3) -5 (12.9) (10.0) 29
Net exchange gain/(loss) 24.3 49.4 -50 (6.3) 18.2 nm
Dividend and interest income from investments 74.4 60.4 23 120.5 102.0 18
nm - not meaningful
(1) Fair value gain/(loss) relates mainly to equity investments in GoTo,
Hermina, Vinamilk and Toyota Motor Corporation
(2) Profit on disposal includes gain from sale and leaseback of properties
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 2024, a final one-tier tax-exempt dividend in
respect of 2023 of US¢90 per share amounting to a dividend of approximately
US$355.7 million is to be proposed. These financial statements do not reflect
this dividend payable, which will be accounted for in shareholders' equity as
an appropriation of retained earnings in the year ending 31st December 2024.
The dividends paid in 2023 and 2022 were as follows:
Group and Company
2023 2022
US$m US$m
Final one-tier tax exempt dividend in respect of previous year of
US¢83 per share (2022: in respect of 2021 of US¢62) 329.5 245.2
Interim one-tier tax exempt dividend in respect of current year of
US¢28 per share (2022: US¢28) 113.4 111.8
442.9 357.0
6 Earnings per share
Group
6 months ended 12 months ended
31st December 31st December
2023 2022 2023 2022
US$m US$m US$m US$m
Basic and diluted earnings per share
Profit attributable to shareholders 567.1 252.3 1,215.4 739.8
Weighted average number of ordinary shares in issue (millions) 395.2 395.2 395.2 395.2
Basic earnings per share US¢143 US¢64 US¢308 US¢187
Diluted earnings per share US¢143 US¢64 US¢308 US¢187
Basic and diluted underlying earnings per share
Underlying profit attributable to shareholders 576.8 573.8 1,160.1 1,096.2
Weighted average number of ordinary shares in issue (millions) 395.2 395.2 395.2 395.2
Basic underlying earnings per share US¢146 US¢145 US¢294 US¢277
Diluted underlying earnings per share US¢146 US¢145 US¢294 US¢277
As at 31st December 2023 and 2022, there were no dilutive potential ordinary
shares in issue.
A reconciliation of the profit attributable to shareholders and underlying
profit attributable to shareholders is as follows:
Group
6 months ended 12 months ended
31st December 31st December
2023 2022 2023 2022
US$m US$m US$m US$m
Profit attributable to shareholders 567.1 252.3 1,215.4 739.8
Less:
Non-trading items (net of tax and non-controlling interests)
Fair value changes of agricultural produce and livestock 0.2 (3.4) 0.5 (3.4)
Fair value changes of investment properties (1.0) (0.9) (1.0) (0.9)
Fair value changes of investments (19.7) (203.2) (20.0) (238.1)
Impairment loss on associates and joint ventures - (114.0) - (114.0)
Impairment loss on goodwill on subsidiaries (6.4) - (6.4) -
Negative goodwill on acquisition of subsidiaries 0.5 - 0.5 -
Gain on sale and leaseback of properties 16.1 - 81.1 -
Gain on sale of property 0.6 - 0.6 -
(9.7) (321.5) 55.3 (356.4)
Underlying profit attributable to shareholders 576.8 573.8 1,160.1 1,096.2
Non-trading items are separately identified to provide greater
understanding of the Group's underlying business performance. Items classified
as non-trading items include: fair value gains or losses on revaluation of
investment properties, agricultural produce and equity investments which are
measured at fair value through profit and loss; gains or losses arising from
sale of businesses, investments and properties; impairment of non-depreciable
intangible assets, associates and joint ventures and other investments;
provisions for closure of businesses; acquisition-related costs in business
combinations and other credits and charges of a non-recurring nature that
require inclusion in order to provide additional insight into the Group's
underlying business performance.
7 Financial Instruments
Financial instruments by category
The fair values of financial assets and financial liabilities, together with
carrying amounts at 31st December 2023 and 2022 are as follows:
Fair
value
through Fair value Financial
Fair value of profit through other assets at Other Total
hedging and comprehensive amortised financial carrying Fair
instruments loss income costs liabilities amount value
US$m US$m US$m US$m US$m US$m US$m
2023
Financial assets
measured at fair value
Other investments
- equity investments - 1,292.5 - - - 1,292.5 1,292.5
- debt investments - 418.5 916.2 - - 1,334.7 1,334.7
Derivative financial
instruments 50.8 0.7 - - - 51.5 51.5
50.8 1,711.7 916.2 - - 2,678.7 2,678.7
Financial assets not
measured at fair value
Debtors - - - 7,714.8 - 7,714.8 7,175.1
Bank balances - - - 2,782.5 - 2,782.5 2,782.5
- - - 10,497.3 - 10,497.3 9,957.6
Financial liabilities
measured at fair value
Derivative financial
instruments (4.2) (0.1) - - - (4.3) (4.3)
Contingent consideration
payable - - - - - - -
(4.2) (0.1) - - - (4.3) (4.3)
Financial liabilities not
measured at fair value
Borrowings excluding
lease liabilities - - - - (7,307.6) (7,307.6) (7,284.4)
Lease liabilities - - - - (315.4) (315.4) (315.4)
Creditors excluding
non-financial liabilities - - - - (4,000.8) (4,000.8) (4,000.8)
- - - - (11,623.8) (11,623.8) (11,600.6)
2022 Restated
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 - - - 7,293.1 - 7,293.1 6,897.0
Bank balances - - - 4,018.1 - 4,018.1 4,018.1
- - - 11,311.2 - 11,311.2 10,915.1
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 - - - - (3,855.4) (3,855.4) (3,855.4)
- - - - (9,959.2) (9,959.2) (9,936.7)
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
2023
Assets
Other investments
- equity investments 1,117.2 - 175.3 1,292.5
- debt investments 916.2 - 418.5 1,334.7
2,033.4 - 593.8 2,627.2
Derivative financial instruments at fair value
- through other comprehensive income - 50.8 - 50.8
- through profit and loss - 0.7 - 0.7
2,033.4 51.5 593.8 2,678.7
Liabilities
Derivative financial instruments at fair value
- through other comprehensive income - (4.2) - (4.2)
- through profit and loss - (0.1) - (0.1)
- (4.3) - (4.3)
- (4.3) - (4.3)
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)
There were no transfers among the three categories during the year ended 31st
December 2023 and 2022.
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
2023 2022
US$m US$m
Long-term borrowings:
- secured 29.1 7.1
- unsecured 3,870.2 3,100.8
3,899.3 3,107.9
Current borrowings:
- secured 34.7 44.1
- unsecured 3,373.6 2,796.2
3,408.3 2,840.3
Total borrowings 7,307.6 5,948.2
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$39.9 million (2022: US$40.5 million).
9 Share capital
Group
2023 2022
US$m US$m
Six months ended 31st December
Issued and fully paid:
Balance at 1st July and 31st December
- 395,236,288 (2022: 395,236,288) ordinary shares 1,381.0 1,381.0
Year ended 31st December
Issued and fully paid:
Balance at 1st January and 31st December
- 395,236,288 (2022: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the year.
The Company did not hold any treasury shares as at 31st December 2023 (31st
December 2022: Nil) and did not have any unissued shares under convertibles as
at 31st December 2023 (31st December 2022: Nil).
There were no subsidiary holdings (as defined in the Listing Rules of the
SGX-ST) as at 31st December 2023 (31st December 2022: Nil).
10 Revenue reserve
Group Company
Restated
2023 2022 2023 2022
US$m US$m US$m US$m
Movements:
Balance at 1st January
- as previously reported 7,737.1 7,374.3 337.1 474.1
- effect of adoption of IFRS 17 31.5 31.5 - -
Balance at 1st January as restated 7,768.6 7,405.8 337.1 474.1
Defined benefit pension plans
- remeasurements - 5.8 - -
- deferred tax 0.1 (1.2) - -
Share of associates' and joint ventures'
remeasurements of defined benefit
pension plans, net of tax (1.7) 3.7 - -
Profit attributable to shareholders 1,215.4 739.8 928.9 220.0
Dividends paid by the Company (Note 5) (442.9) (357.0) (442.9) (357.0)
Change in shareholding (3.1) (28.2) - -
Other 8.6 (0.1) - -
Balance at 31st December 8,545.0 7,768.6 823.1 337.1
11 Other reserves
Group Company
Restated
2023 2022 2023 2022
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 410.1 404.8 - -
Translation reserve (2,312.2) (2,397.3) 383.1 334.3
Fair value reserve 0.2 5.8 - -
Hedging reserve 12.0 5.1 2.3 -
Other reserve 3.3 3.3 - -
Balance at 31st December (1,886.6) (1,978.3) 385.4 334.3
Movements:
Asset revaluation reserve
Balance at 1st January 404.8 404.7 - -
Surplus on revaluation of assets - 0.4 - -
Share of associates' and joint ventures'
revaluation surplus 5.3 - - -
Other - (0.3) - -
Balance at 31st December 410.1 404.8 - -
Translation reserve
Balance at 1st January (2,397.3) (1,774.6) 334.3 326.2
Translation difference 85.1 (622.7) 48.8 8.1
Balance at 31st December (2,312.2) (2,397.3) 383.1 334.3
Fair value reserve
Balance at 1st January 5.8 16.5 - -
Financial assets at FVOCI
- fair value changes (5.6) (9.8) - -
- transfer to profit and loss - (0.9) - -
Balance at 31st December 0.2 5.8 - -
Hedging reserve
Balance at 1st January 5.1 (37.0) - -
Cash flow hedges
- fair value changes 6.8 15.1 2.3 -
- deferred tax (1.0) (3.3) - -
Share of associates' and joint ventures'
fair value changes of cash flow hedges,
net of tax 1.1 30.3 - -
Balance at 31st December 12.0 5.1 2.3 -
Other reserve
Balance at 1st January and 31st December 3.3 3.3 - -
12 Non-controlling interests
Group
Restated
2023 2022
US$m US$m
Balance at 1st January
- as previously reported 9,309.7 9,027.1
- effect of adoption of IFRS 17 31.4 31.4
Balance at 1st January as restated 9,341.1 9,058.5
Asset revaluation surplus
- surplus on revaluation of assets - 0.5
Share of associates' and joint ventures' asset revaluation surplus 7.9 -
Financial assets at FVOCI
- fair value changes (6.0) (10.6)
- transfer to profit and loss - (1.0)
(6.0) (11.6)
Cash flow hedges
- fair value changes 4.6 19.6
- deferred tax (1.0) (4.3)
3.6 15.3
Share of associates' and joint ventures' fair value changes of
cash flow hedges, net of tax (0.5) 67.3
Defined benefit pension plans
- remeasurements (1.5) 7.8
- deferred tax 0.5 (1.5)
(1.0) 6.3
Share of associates' and joint ventures' remeasurements of
defined benefit pension plans, net of tax (2.0) 2.3
Translation difference 145.5 (718.2)
Profit for the year 1,761.3 1,716.1
Issue of shares to non-controlling interests 156.4 46.2
Dividends paid (1,682.7) (642.4)
Change in shareholding 3.4 (198.9)
Acquisition of subsidiaries 39.4 -
Other 9.5 (0.3)
Balance at 31st December 9,775.9 9,341.1
13 Related party transactions
The following significant related party transactions took place during the
year ended 31st December:
Group
2023 2022
US$m US$m
(a) With associates and joint ventures:
Purchase of goods and services (6,441.3) (6,087.8)
Sale of goods and services 2,296.8 1,880.0
Bank deposits and balances 19.5 -
Commission and incentives earned 10.2 6.2
Interest received 18.0 18.5
(b) With related companies and
associates of ultimate holding
company:
Management fees paid (6.6) (4.3)
Purchase of goods and services (1.7) (2.6)
Sale of goods and services 1.5 2.2
(c) Remuneration of directors of the
Company and key management
personnel of the Group:
Salaries and other short-term
employee benefits (11.8) (10.5)
14 Commitments
Capital expenditure authorised for at the balance sheet date, but not
recognised in the financial statements is as follows:
Group
2023 2022
US$m US$m
Authorised and contracted 163.6 178.8
Authorised but not contracted 576.4 294.6
740.0 473.4
15 Cash flows from operating activities
Group
2023 2022
US$m US$m
Profit before tax 3,714.5 3,227.2
Adjustments for:
Financing income (149.0) (120.0)
Financing charges 271.5 178.2
Share of associates' and joint ventures' results after tax (732.8) (575.4)
Amortisation/depreciation of:
- intangible assets 97.5 141.8
- right-of-use assets 154.5 141.1
- property, plant and equipment 754.9 694.4
- bearer plants 30.1 28.2
Impairment/(write-back of impairment) of:
- intangible assets 34.1 1.1
- property, plant and equipment (1.1) 45.6
- debtors 123.8 181.3
Fair value (gain)/loss on:
- investment properties 2.7 2.8
- investments 29.5 269.6
- agricultural produce (1.6) 11.4
- derivative not qualifying as hedge 0.1 (0.1)
(Profit)/loss on disposal of:
- intangible assets 0.5 0.9
- right-of-use assets (0.6) (0.1)
- property, plant and equipment (77.1) (12.0)
- investments (0.6) (1.7)
Loss on disposal/write-down of receivables from collateral vehicles 54.8 37.3
Negative goodwill on acquisition of subsidiaries (2.2) -
Amortisation of borrowing costs for financial services companies 8.5 9.1
Write-down of stocks 12.9 10.0
(Gain)/loss on modifications to lease term 0.8 (1.1)
Changes in provisions 44.4 42.7
Foreign exchange (gain)/loss (12.3) 46.4
643.3 1,131.5
Operating profit before working capital changes 4,357.8 4,358.7
Changes in working capital
Properties for sale (147.6) (55.0)
Stocks ((1)) (595.7) (887.5)
Concession rights (31.2) (25.5)
Financing debtors (517.4) (591.3)
Debtors ((2)) (157.3) (937.5)
Creditors ((3)) 140.6 1,192.5
Pensions (1.3) (10.6)
(1,309.9) (1,314.9)
Cash flows from operating activities 3,047.9 3,043.8
(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 subsidiaries
The acquisitions in 2023 comprised net cash outflow of US$67.2 million for a
100% interest in PT Tokobagus, a company operating a leading classifieds
platform in Indonesia under the OLX brand, US$80.5 million for a 96.9%
interest in PT Jaya Mandarin Agung, owner of the Mandarin Oriental Hotel
Jakarta, and US$347.9 million, including settlement of shareholder loan and
termination of contract with a third party, for a 70% interest each in PT
Stargate Mineral Asia and PT Stargate Pasific Resources as well as a 67%
interest in PT Anugerah Surya Pacific Resources, companies which operate in
nickel mining, services and smelter.
There were no subsidiaries acquired in 2022.
(b) Purchase of shares in associates and joint ventures
Purchase of shares in associates and joint ventures in 2023 mainly included
US$616.3 million for Astra's investment in Nickel Industries Ltd, US$98.6
million for Astra's investment in PT Polinasi Iddea Investama, US$52.8 million
for Astra's investment in PT Supreme Energy Sriwijaya, US$25.3 million for
Astra's investment in PT Equinix Indonesia JKT and US$14.2 million for
additional purchase of shares in Refrigeration Electrical Engineering
Corporation.
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.
(c) Changes in controlling interests in subsidiaries
Change in controlling interests of subsidiaries in 2023 mainly included an
outflow of US$3.3 million for Astra's acquisition of additional interest in PT
Acset Indonusa Tbk.
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.
(d) Sale and leaseback of assets held by Cycle & Carriage Industries Pte
Ltd ("CCI")
CCI entered into a sale-and-leaseback agreement with third parties in respect
of its properties in Singapore. The properties mainly comprise leasehold land
and buildings used as showrooms, service centres, workshops, and warehouses.
The leaseback duration would be 10 to 15 years with options to renew for two
of the properties. The sale-and-leaseback agreement allowed the Group to
unlock the value of its real estate assets held through CCI, of which the net
proceeds of US$225 million was re-deployed to reduce the Company's debt.
Profit arising from the sale-and-leaseback transaction, net of deferred tax
impact, amounted to US$81 million.
17 Segment Information
Operating segments are identified on the basis of internal reports about
components of the Group that are regularly reviewed by the Board for the
purpose of resource allocation and performance assessment. The Board considers
Astra as one operating segment because it represents a single direct
investment made by the Company. Decisions for resource allocation and
performance assessment of Astra are made by the Board of the Company while
resource allocation and performance assessment of the various Astra businesses
are made by the board of Astra, taking into consideration the opinions of the
Board of the Company. THACO is identified as another operating segment.
Direct Motor Interests are aggregated into one reportable segment based on the
similar automotive nature of their products and services, while Other
Strategic Interests, comprising the Group's strategic investment portfolio,
are aggregated into another reportable segment based on their exposure to
market-leading companies in key regional economies. Set out below is an
analysis of the segment information.
Underlying businesses performance
Direct Other Non-
Motor Strategic Corporate trading
Astra THACO Interests Interests costs items Group
US$m US$m US$m US$m US$m US$m US$m
6 months ended 31st December 2023
Revenue 9,779.1 - 769.8 - - - 10,548.9
Net operating costs (8,350.6) - (740.9) 26.5 18.6 (60.2) (9,106.6)
Operating profit 1,428.5 - 28.9 26.5 18.6 (60.2) 1,442.3
Financing income 68.2 - 0.9 - 3.4 - 72.5
Financing charges (126.0) - (7.9) - (29.6) - (163.5)
Net financing charges (57.8) - (7.0) - (26.2) - (91.0)
Share of associates' and joint
ventures' results after tax 308.3 21.1 17.4 29.4 - 2.0 378.2
Profit before tax 1,679.0 21.1 39.3 55.9 (7.6) (58.2) 1,729.5
Tax (373.4) - (4.6) (0.9) (0.6) 19.1 (360.4)
Profit after tax 1,305.6 21.1 34.7 55.0 (8.2) (39.1) 1,369.1
Non-controlling interests (829.6) - (1.8) - - 29.4 (802.0)
Profit attributable to
shareholders 476.0 21.1 32.9 55.0 (8.2) (9.7) 567.1
Restated
6 months ended 31st December 2022
Revenue 10,173.2 - 825.1 - - - 10,998.3
Net operating costs (8,728.5) - (791.0) 27.2 32.4 (380.4) (9,840.3)
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
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 2023
Revenue 20,605.3 - 1,629.2 - - - 22,234.5
Net operating costs (17,609.6) - (1,573.6) 35.5 2.4 15.0 (19,130.3)
Operating profit 2,995.7 - 55.6 35.5 2.4 15.0 3,104.2
Financing income 140.9 - 1.7 - 6.4 - 149.0
Financing charges (204.5) - (13.5) - (53.5) - (271.5)
Net financing charges (63.6) - (11.8) - (47.1) - (122.5)
Share of associates' and joint
ventures' results after tax 609.2 35.8 35.6 50.2 - 2.0 732.8
Profit before tax 3,541.3 35.8 79.4 85.7 (44.7) 17.0 3,714.5
Tax (741.3) - (9.7) (1.9) (1.8) 16.9 (737.8)
Profit after tax 2,800.0 35.8 69.7 83.8 (46.5) 33.9 2,976.7
Non-controlling interests (1,780.7) - (2.0) - - 21.4 (1,761.3)
Profit attributable to
shareholders 1,019.3 35.8 67.7 83.8 (46.5) 55.3 1,215.4
As at 31.12.2023
Net cash/(debt) (excluding
net debt of financial
services companies) 124.2 - (14.4) - (1,254.9) (1,145.1)
Total equity 16,309.6 673.3 414.4 692.4 (274.4) 17,815.3
Restated
12 months ended 31st December 2022
Revenue 19,976.8 - 1,588.7 - - - 21,565.5
Net operating costs (17,060.9) - (1,534.5) 36.5 (12.8) (283.8) (18,855.5)
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 Restated
Net cash/(debt) (excluding
net debt of financial
services companies) 2,348.7 - (3.4) - (1,452.5) 892.8
Total equity 15,559.7 678.8 308.4 658.6 (693.1) 16,512.4
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
31.12.2023 12,564.1 1,554.5 14,118.6
31.12.2022 Restated 10,059.6 1,495.2 11,554.8
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$m
nature of transaction
12 months ended 31st December 2023
Jardine Matheson Limited Associate of the Company's
- Management support services controlling shareholder - 6.2
- Business support services (including - 0.2
HR support and management, and
internal audit and risk management)
- Cyber security services - 0.3
Jardine Matheson & Co., Ltd Associate of the Company's
- Human resource and administrative controlling shareholder - 0.6
services
Jardine Engineering (S) Pte Ltd Associate of the Company's
- Air conditioner maintenance controlling shareholder - 0.3
services
The Dairy Farm Company Ltd Associate of the Company's
- Data analytics services controlling shareholder - 0.2
Jardine Matheson Limited Associate of the Company's
- Digital and innovation services controlling shareholder 0.6 -
Hongkong Land (Unicode) Associate of the Company's
Investments Limited controlling shareholder
- Subscription of shares in an 28.5 -
associate
PT Astra Land Indonesia Associate of the Company's
- Issuance of shares in a joint venture controlling shareholder 28.5 -
Mandarin Oriental Holdings B.V. Associate of the Company's
- Sale of shares in a subsidiary controlling shareholder 12.5 -
Mandarin Oriental Hotel Group Ltd Associate of the Company's
- Sale of receivables under a controlling shareholder 8.8 -
shareholder loan agreement
78.9 7.8
19 Underlying Profit by Business
Group
6 months ended 31st December 12 months ended 31st December
2023 2022 Change 2023 2022 Change
US$m US$m % US$m US$m %
Astra International
Automotive 168.1 168.4 0 341.7 296.8 15
Financial services 130.8 102.2 28 258.1 202.3 28
Heavy equipment, mining, construction & energy 193.1 211.5 -9 421.9 423.7 0
Agribusiness 17.8 27.3 -35 27.2 49.6 -45
Infrastructure & logistics 15.2 5.5 >100 32.0 17.7 81
Information technology 1.9 1.7 12 3.6 2.5 44
Property 3.1 2.9 7 5.4 5.4 0
530.0 519.5 2 1,089.9 998.0 9
Less: Withholding tax on dividend (54.0) (71.3) 24 (70.6) (85.1) 17
476.0 448.2 6 1,019.3 912.9 12
THACO
Automotive 17.8 42.1 -58 30.0 97.7 -69
Real estate 4.3 (0.2) nm 1.9 (0.3) nm
Agriculture (7.2) (17.7) 59 (7.6) (25.6) 70
Other 6.2 6.3 -2 11.5 11.0 5
21.1 30.5 -31 35.8 82.8 -57
Direct Motor Interests
Singapore 13.5 21.5 -37 25.1 32.9 -24
Malaysia 2.5 3.7 -32 8.6 6.9 25
Myanmar (2.3) (3.3) 30 (3.4) (3.3) -3
Indonesia (Tunas Ridean) 20.1 13.5 49 39.1 28.1 39
Less: central overheads (0.9) (1.0) 10 (1.7) (1.7) 0
32.9 34.4 -4 67.7 62.9 8
Other Strategic Interests
Siam City Cement 7.7 (3.4) nm 16.6 11.6 43
REE 20.8 28.3 -27 31.7 37.7 -16
Vinamilk 26.5 27.2 -3 35.5 36.5 -3
55.0 52.1 6 83.8 85.8 -2
Corporate costs
Central overheads (13.2) (9.1) -45 (27.0) (23.0) -17
Dividend income from other investments 2.5 2.2 14 5.6 4.8 17
Net financing charges (26.3) (23.1) -14 (47.1) (33.9) -39
Exchange differences 28.8 38.6 -25 22.0 3.9 >100
(8.2) 8.6 nm (46.5) (48.2) 4
Underlying profit attributable to shareholders 576.8 573.8 1 1,160.1 1,096.2 6
20 Dividend and closure of books
NOTICE IS HEREBY GIVEN that, subject to shareholders' approval being obtained
at the forthcoming 55th Annual General Meeting of the Company ("AGM") for the
proposed final one-tier tax-exempt dividend of US$0.90 per share for the
financial year ended 31st December 2023 (the "Final Dividend"), the Transfer
Books and Register of Members of the Company will be closed from 5.00 p.m. on
Thursday, 30th May 2024 (the "Record Date") up to, and including Friday, 31st
May 2024, 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, Boardroom Corporate &
Advisory Services Pte. Ltd. at 1 Harbourfront Avenue, Keppel Bay Tower #14-07,
Singapore 098632 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 18th June 2024.
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 2024 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 2023 can be accessed through the internet at
'www.jcclgroup.com'.
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