REG - Jardine Matheson Hdg - PT Astra International Tbk – Half-year results

Jardine Matheson HoldingsAnnouncement

28/07/2023 13:45

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RNS Number : 6084H  Jardine Matheson Hldgs Ltd  28 July 2023

To:   Business
Editor
28th July 2023

 
For immediate release

 

PT Astra International Tbk

2023 First Half Financial Statements

 

The following announcement was issued today by the Company's 76.8%-owned
subsidiary, Jardine Cycle & Carriage Limited, which holds 50.1% of PT
Astra International Tbk.

 

For further information, please contact:

 

Jardine Matheson Limited

Jonathan
Lloyd
(852) 2843 8223

 

Brunswick Group Limited

Ben
Fry
(65) 9017 9886

 

 

28th July 2023

PT ASTRA INTERNATIONAL Tbk (the "Company" or "Astra")

2023 FIRST HALF FINANCIAL STATEMENTS

 

Highlights

·    Net earnings per share 20% higher at Rp428 (excluding fair value
adjustments)

·    Higher contributions from most businesses

·    Car and motorcycle sales up by 7% and 56%, respectively

·    Strong financial and funding position

 

"Astra Group performed well in the first half of 2023, with improved
performances from most businesses. While the global economic environment
continues to raise challenges, we are confident that Astra Group's performance
for the remainder of the year should be satisfactory."

 

Djony Bunarto Tjondro

President Director

 

 

 Astra Group ("the Group") Results

                                                                                 For the period ended 30(th) June
                                                                                 2023          2022            Change

                                                                                 Rp bn         Rp bn           %
 Net revenue                                                                     162,393       143,692         13
 Net income* (before fair value adjustments on investments in GoTo and Hermina)  17,319        14,462          20
 Net income*                                                                     17,449        18,174          (4)
                                                                                 Rp            Rp
 Net earnings per share* (before fair value adjustments on investments in GoTo   428           357             20
 and Hermina)
 Net earnings per share*                                                         431           449             (4)
                                                                                 As at 30(th)  As at 31(st)    Change

                                                                                 June 2023     December 2022   %

                                                                                 Rp bn         Rp bn
 Shareholders' funds                                                             186,346       192,142         (3)
                                                                                 Rp            Rp
 Net asset value per share                                                       4,603         4,746           (3)

*Profit attributable to owners of the parent.

 

The financial results for the six months ended 30(th) June 2023 and 2022, as
well as the financial position as at 30(th) June 2023, have been prepared in
accordance with Indonesian Financial Accounting Standards and are unaudited.
The financial position as at 31(st) December 2022 has been prepared in
accordance with Indonesian Financial Accounting Standards and audited in
accordance with the auditing standards established by the Indonesian Institute
of Certified Public Accountants.

 

PRESIDENT DIRECTOR'S STATEMENT

 

Performance

The Group's consolidated net revenue in the first half of 2023 was Rp162.4
trillion, 13% higher than in the first half of 2022. The Group's net income,
excluding fair value adjustments, was Rp17.3 trillion, 20% higher than in the
first half of 2022. This earnings growth reflects improved performances from
most of the Group's business divisions, especially automotive, financial
services, and heavy equipment and mining. Including these fair value
adjustments, the Group's net income decreased by 4% to Rp17.4 trillion
compared to the first half of 2022, which included a fair value gain of Rp3.7
trillion on GoTo and Hermina.

 

The net asset value per share at 30(th) June 2023 was Rp4,603, 3% lower than
at 31(st) December 2022.

 

Net cash, excluding the Group's financial services subsidiaries, was Rp23.9
trillion at 30(th) June 2023, compared with Rp35.1 trillion at the end of
2022. Net debt of the Group's financial services subsidiaries was Rp50.1
trillion at 30(th) June 2023 compared with Rp44.5 trillion at the end of 2022.

 

Business Activities

The Group's net income by division in the first half of 2023 compared with the
first half of 2022 is set out in the table below:

 

                                                                                 Net Income by Division
                                                                                                     For
                                                                                                     the
                                                                                                     per
                                                                                                     iod
                                                                                                     end
                                                                                                     ed
                                                                                                     30(
                                                                                                     th)
                                                                                                     Jun
                                                                                                     e
                                                                                 2023      2022      Change

                                                                                 Rp bn     Rp bn     %
 Automotive                                                                      5,693     4,271     33
 Financial Services                                                              3,826     2,902     32
 Heavy Equipment, Mining, Construction and Energy                                6,886     6,194     11
 Agribusiness                                                                    293       645       (55)
 Infrastructure and Logistics                                                    502       353       42
 Information Technology                                                          51        24        113
 Property                                                                        68        73        (7)
 Net Income* (before fair value adjustments on investments in GoTo and Hermina)  17,319    14,462    20
 Fair value adjustments on investments in GoTo and Hermina                       130       3,712     (96)
 Net Income*                                                                     17,449    18,174    (4)

*Profit attributable to owners of the parent.

 

Automotive

Net income from the Group's automotive division increased by 33% to Rp5.7
trillion, reflecting higher sales volumes.

 

·      The wholesale car market increased by 7% to 506,000 units in the
first half of 2023 (source: Gaikindo). Astra's car sales were 7% higher at
278,000 units, and its market share was marginally higher at 55%. Eleven new
models and six revamped models were launched during the period, including a
battery electric model ("BEV"), the Lexus RZ, and a hybrid electric model
("HEV"), the Toyota Yaris Cross. The Toyota Yaris Cross is the second HEV
produced locally in Indonesia following the launch of the Toyota Innova Zenix
in late 2022. Following the launch of the Lexus RZ, the Group now sells three
BEV models locally, including the Lexus UX300e and the Toyota bZ4X.

·      The wholesale market for motorcycles grew strongly by 43% to 3.2
million units in the first half of 2023 (source: Ministry of Industry). Astra
Honda Motor's sales amounted to 2.6 million units, 56% higher than the same
period last year, during which the business was impacted by production
constraints caused by semiconductor supply issues. As a result, its market
share in the first half of 2023 increased from 73% to 80%. Two new models and
seven revamped models were launched during the period.

·      The Group's 80%-owned components business, Astra Otoparts,
reported an 85% increase in net income to Rp802 billion in the first half of
2023, mainly due to higher revenue from the original equipment manufacturer
segment.

 

Financial Services

Net income from the Group's financial services division increased by 32% to
Rp3.8 trillion in the first half of 2023 compared to the first half of 2022,
due to higher contributions from consumer and heavy equipment finance.

 

·      The Group's consumer finance businesses saw a 27% increase in new
amounts financed to Rp59.8 trillion. The net income contribution from the
Group's car-focused finance companies increased by 36% to Rp1.1 trillion, as a
result of larger loan portfolios and lower loan loss provisions. The net
income contribution from the Group's motorcycle-focused finance company,
Federal International Finance, increased by 30% to Rp2.0 trillion, also due to
a larger loan portfolio and lower loan loss provisions.

·     The Group's heavy equipment-focused finance companies saw new
amounts financed stable at Rp5.7 trillion. The net income contribution from
these businesses increased by 112% to Rp91 billion, mainly due to the growth
of the total loan portfolio.

·     General insurance company Asuransi Astra Buana reported a 9%
increase in net income to Rp688 billion, benefitting from higher underwriting
income, while investment income which continues to be the major contributor to
net income was stable. The Group's life insurance company, Astra Life,
recorded 9% higher gross written premiums at Rp3.1 trillion.

 

Heavy Equipment, Mining, Construction and Energy

Net income from the Group's heavy equipment, mining, construction and energy
division was 11% higher at Rp6.9 trillion, mainly due to higher contributions
from its heavy equipment and mining contracting businesses.

 

·      59.5%-owned United Tractors reported an 8% increase in net income
to Rp11.2 trillion.

·      Komatsu heavy equipment sales increased by 9% to 3,100 units and
there was also higher revenue from the parts and service businesses.

·      Mining contractor Pamapersada Nusantara recorded a 20% increase
in overburden removal volume at 524 million bank cubic metres and an 18%
higher coal production at 59 million tonnes.

·      United Tractors' coal mining subsidiaries recorded an 11%
increase in coal sales to 6.4 million tonnes, including 1.3 million tonnes of
metallurgical coal.

·      Agincourt Resources, 95%-owned by United Tractors, reported 24%
lower gold sales at 110,000 oz.

·      General contractor Acset Indonusa, 82.2%-owned by United
Tractors, reported a lower net loss of Rp55 billion, compared with a net loss
of Rp114 billion in the first half of the previous year.

 

Agribusiness

Net income from the Group's agribusiness division decreased by 55% to Rp293
billion, largely due to lower crude palm oil selling prices.

 

·      The net income of 79.7%-owned Astra Agro Lestari decreased by 55%
to Rp368 billion.

·      Crude palm oil and derivative product sales increased by 18% to
754,000 tonnes.

·      Crude palm oil prices, however, were 24% lower at Rp11,355/kg.

 

Infrastructure and Logistics

The Group's infrastructure and logistics division reported a 42% increase in
net income to Rp502 billion, primarily due to an improved performance in its
toll road businesses.

 

·      The Group has interests in 396km of operational toll roads along
the Trans-Java network and in the Jakarta Outer Ring Road. The Group's toll
road concessions saw 7% higher daily toll revenue during the period.

·      Serasi Autoraya's net income increased by 6% to Rp84 billion,
mainly due to improved operating margin and a 1% increase in vehicles under
contract to 25,400 units, despite a lower contribution from used car earnings.

 

Information Technology

The Group's information technology division, represented by 76.9%-owned Astra
Graphia, reported a 113% increase in net income to Rp51 billion, primarily due
to higher revenue and improved operating margin.

 

Property

The Group's property division reported a 7% decrease in net income to Rp68
billion, primarily due to lower earnings from lower handover of units in the
Asya Residences and Anandamaya Residences residential projects, which were
partly offset by higher earnings from the handover of units in Arumaya
Residences and a higher occupancy rate in Menara Astra.

 

Recent Corporate Actions

·    In June, the Group, through United Tractors, entered into a
subscription agreement to acquire a 19.99% stake in Nickel Industries Limited
("NIC") with a total transaction value of A$943 million. The completion of
this transaction is subject to the fulfillment of certain conditions
precedent, including approval by NIC shareholders under the Australian
Securities Exchange Listing Rules.

·    In June, the Group, through Astra Land Indonesia, acquired a 96.92%
stake in Jaya Mandarin Agung, owner of the Mandarin Oriental Hotel Jakarta and
the prime 1-hectare site where the hotel is located. The total transaction
value is US$85 million.

·    In July, the Group, through Astra Digital Internasional, invested an
additional US$100 million in Halodoc, a leading digital health ecosystem
platform in Indonesia, bringing the Group's total investment to US$135 million
and ownership to 21.04%.

·    In July, the Group, through Astra Digital Mobil, signed an agreement
to acquire 99.98% of Tokobagus, a company operating a leading classifieds
platform in Indonesia under the OLX brand. The remaining 0.02% will be
acquired by Astra Digital Internasional. Completion of this transaction is
subject to the fulfilment of certain conditions precedent.

 

Prospects

The Group performed well in the first half of 2023, with improved performances
from most businesses. While the global economic environment continues to raise
challenges, we are confident that the Group's performance for the remainder of
the year should be satisfactory.

 

Djony Bunarto Tjondro

President Director

28th July 2023

For further information, please contact:

PT Astra International Tbk

Riza Deliansyah, Chief of Corporate Affairs

Tel: +62 - 21 - 5084
3888

 

-end-

About Astra

Astra is one of Indonesia's largest public companies, comprising 270
subsidiaries, joint ventures, and associate companies, supported by more than
190,000 employees. The company's diversified business model creates synergies
and opportunities across industry sectors including automotive, financial
services, heavy equipment, mining construction and energy, agribusiness,
infrastructure and logistics, information technology, and property. The
company has a new sustainability framework which contains Astra 2030
Sustainability Aspirations. It will guide Astra in the transition journey to
be a more sustainable business by 2030 and beyond. Astra wishes to contribute
to the strength and resilience of the Indonesian economy while supporting an
inclusive and prosperous society.

 

Astra has a strong record of public and social contributions through four
pillars, which consist of health, education, environment, and
entrepreneurships as well as nine foundations to contribute to the growth of
the Indonesian economy while encouraging a more inclusive and prosperous
society. Established in 2010, Astra's Semangat Astra Terpadu Untuk (SATU)
Indonesia Awards programme, has recognised the contribution of 565 young
Indonesians across each of these focus areas, including 87 national level
recipients and 487 provincial level recipients. The SATU Indonesia Awards
programme is integrated with Astra's wide range of community activities
through 170 Kampung Berseri Astra and 1,060 Desa Sejahtera Astra initiatives
in 34 provinces throughout Indonesia.

 

For more about Astra, visit www.astra.co.id (http://www.astra.co.id) &
www.satu-indonesia.com (http://www.satu-indonesia.com) , and follow us on
Instagram (@SATU_Indonesia), YouTube (SATU Indonesia), Facebook (Semangat
Astra Terpadu) and Twitter (@SATU_Indonesia).

 

 

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