REG - Jardine StrategicJardine Cycle&CarrgeJardine Matheson Hdg - Jardine Cycle & Carriage - Half Year Statements <Origin Href="QuoteRef">JARD.SI</Origin> <Origin Href="QuoteRef">JCYC.SI</Origin> <Origin Href="QuoteRef">JSH.SI</Origin> - Part 1
RNS Number : 0210OJardine Strategic Hldgs Ltd01 August 2014
To: Business Editor
1st August 2014
For immediate release
Jardine Cycle & Carriage Limited
2014 Half Year Financial Statements and Dividend Announcement
The following announcement was issued today by the Company's 74%-owned subsidiary, Jardine Cycle & Carriage Limited.
For further information, please contact:
Jardine Matheson Limited
Neil M McNamara (852) 2843 8227
GolinHarris
Kennes Young (852) 2501 7987
1st August 2014
JARDINE CYCLE & CARRIAGE LIMITED
2014 HALF YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT
Highlights
Underlying earnings per share 9% down
Astra's earnings in rupiah terms rose 11%, but were lower in US$ terms
Much improved contribution from the Group's other motor interests
''Trading conditions are likely to remain mixed for the Group's businesses for the remainder of the year. While Astra's operating performance is expected to be satisfactory, it will continue to face heightened competition in the car market and the effects of softer coal prices. The weaker rupiah exchange rate will reduce Astra's full-year contribution to the Group."
Ben Keswick, Chairman
1st August 2014
Group Results
Six months ended 30th June
2014
US$m
2013
US$m
Change
%
2014
S$m
Revenue
9,502
10,403
-9
11,980
Profit after tax
1,019
1,033
-1
1,285
Underlying profit attributable to
shareholders *
413
453
-9
521
Profit attributable to shareholders
433
453
-4
546
US
US
S
Underlying earnings per share *
116.05
127.24
-9
146.32
Earnings per share
121.79
127.24
-4
153.55
Interim dividend per share #
18.00
18.00
-
22.49
At
30.6.2014
At
31.12.2013
At
30.6.2014
US$m
US$m
S$m
Shareholders' funds
4,476
4,261
5
5,592
US$
US$
S$
Net asset value per share
12.58
11.98
5
15.72
The exchange rate of US$1=S$1.25 (31st December 2013: US$1=S$1.27) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.26 (30th June 2013: US$1=S$1.25) was used for translating the results for the period.
The financial results for the six months ended 30th June 2014 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors.
* The basis for calculating underlying earnings is set out in Note 4 of this report.
# The S$ equivalent is an estimate as the actual amount of the interim dividend will be determined on Books Closure Date referred to in Note 11.
CHAIRMAN'S STATEMENT
Overview
The Group's businesses produced mixed results in the first half of the year. There were generally strong operating performances in Astra which led to an improved rupiah result, but its contribution was reduced by a weaker exchange rate. The Group's other motor interests saw an improved result overall.
Performance
The Group's revenue for the first half declined by 9% to US$9.5 billion. Underlying profit was 9% lower at US$413 million, while underlying earnings per share also declined by 9% to US116.05. Profit attributable to shareholders at US$433 million was 4% lower, after accounting for a net gain of US$20 million in non-trading items attributable largely to the recognition of negative goodwill arising on the acquisition of a 50% interest in Astra Aviva Life.
Astra contributed US$381 million to the Group's underlying profit, 12% lower than the previous year as the improved performance in rupiah terms was reduced by the effect of the rupiah exchange rate, which was on average 17% weaker than in the first half of 2013. The contribution to underlying profit from the Group's other motor interests of US$37 million was up 50%.
The Group's consolidated net debt at the end of June 2014 was US$410 million, excluding borrowings within Astra's financial services subsidiaries, representing 4% of total equity, compared to US$303 million at the end of 2013, which represented 3% of total equity. Net debt within Astra's financial services subsidiaries was US$3.5 billion at the end of June, similar to the level at the end of last year.
The Board has declared an interim one-tier tax exempt dividend of US18 per share (2013: US18 per share).
Group Review
Astra
Astra reported a net profit equivalent to US$837 million under Indonesian accounting standards, 11% up in its reporting currency. Improved results from its agribusiness and contract mining operations were partially offset by a reduction in earnings from its automotive businesses. It benefited from a non-trading gain from the recognition of negative goodwill arising on the acquisition of a 50% interest in Astra Aviva Life.
Automotive
While automotive demand remained favourable during the first half, discounting in the car market continued to have a negative impact on earnings. Astra's component businesses also made a lower contribution following the reduction in its interest in Astra Otoparts from 96% to 80% in the second quarter of 2013.
The wholesale market for cars grew by 7% to 642,000 units. However, Astra's car sales rose by 4% to 334,000 units, resulting in its market share decreasing from 53% to 52%. The group launched eleven new models and seven revamped models during the period.
The wholesale market for motorcycles increased by 7% to 4.2 million units. Astra Honda Motor's sales increased by 11% to 2.6 million units, with its market share increasing from 60% to 62%. Astra Honda Motor launched eleven revamped models during the half year.
Astra Otoparts, the group's 80%-owned component business, saw higher sales volumes although net income fell by 11% to US$39 million on lower manufacturing margins.
Financial Services
Net income from Astra's financial services businesses increased by 15% to US$211 million, after accounting for a US$38 million non-trading gain arising from the recognition of negative goodwill following the acquisition of a 50% interest in Astra Aviva Life. Excluding the non-trading gain, net income from financial services was 5% lower at US$174 million. Strong growth from Federal International Finance, in particular, was offset by a decline in contribution from Asuransi Astra Buana.
The amount financed through Astra's automotive-focused consumer finance operations grew by 11% to US$2.6 billion, including balances financed through joint bank financing without recourse. The amount financed through the heavy equipment-focused finance operations declined by 23% to US$168 million due to a reduction in sales.
Astra's 45%-held joint venture, Permata Bank, reported net income of US$68 million, a decrease of 2%.
Group insurance company, Asuransi Astra Buana, recorded lower earnings as strong growth in gross written premiums was offset by a decline in contribution from investment earnings due to the recognition of certain gains during the first quarter of 2013 on the redemption of mutual fund holdings.
During the second quarter, Astra completed the disposal of a 25% interest in Astra Sedaya Finance to Permata Bank for a cash consideration of US$187 million, with the resulting US$89 million gain recorded directly in equity.
Heavy Equipment and Mining
United Tractors, which is 60%-owned, reported an 11% increase in net revenue and a 42% improvement in net income to US$280 million.
In the construction machinery business, net revenue decreased marginally reflecting a 10% decline in sales of Komatsu heavy equipment to 2,207 units, offset by higher parts and service revenue.
The contract mining operations of subsidiary, Pamapersada Nusantara, benefited from improved coal volumes on lower stripping ratios. It reported a 12% increase in net revenue as contract coal production increased 20% to 60 million tonnes, while contract overburden removal decreased 3% to 401 million bank cubic metres.
United Tractors' mining subsidiaries reported an increase in net revenue of 46%, with coal sales 51% higher at 3.4 million tonnes, although the average coal sale prices declined by 7%. Increased fuel costs also reduced the gross profit margins. United Tractors and its subsidiaries own interests in nine coal mines with combined reserves estimated at 409 million tonnes at the previous year end.
Agribusiness
Astra Agro Lestari, which is 80%-held, reported net income of US$117 million, up 91%. Average crude palm oil prices achieved were 32% higher at Rp8,728/kg, although crude palm oil sales decreased by 10% to 675,000 tonnes, primarily due to the commencement of operations of Astra Agro Lestari's refinery in West Sulawesi, which sold 92,000 tonnes of olein during the first half.
Infrastructure, Logistics and Others
The contribution to Astra's net income from infrastructure, logistics and others fell by 23% to US$15 million.
The 72.5 km Tangerang-Merak toll road operated by 79%-owned Marga Mandalasakti reported a 4% increase in traffic volume to 21 million vehicles with 14% higher average tariffs. The group's 95%-owned greenfield 40.5 km Kertosono-Mojokerto toll road near Surabaya, which was acquired in late 2011, remains under construction. Section 1, which is 14.7 km, is expected to commence operations before the end of 2014, with subsequent stages coming into operation during 2015, subject to the completion of land acquisitions. Taken together with Astratel's 40% interest in the greenfield 11.2 km Kunciran - Serpong toll road on Jakarta's outer ring-road, the group has an interest in 124.2 km of toll road.
Serasi Autoraya's revenue improved despite the number of vehicles under contract at its TRAC car rental business being lower by 5% at 30,000 units, but the benefit was offset by higher operating costs, resulting in a decline in net income by 25% to US$6 million.
Anandamaya Residences, the group's 60%-held luxury residential development project located in Jakarta's Central Business District, is expected to launch public sales during the third quarter. This high-end development consists of approximately 500 apartment units, with completion expected in 2018.
Information Technology
Astra Graphia, 77%-owned, which is active in the area of document information and communication technology solutions and is the sole distributor of Fuji Xerox office equipment in Indonesia, reported net income of US$9 million, up 53%.
Group's Other Motor Interests
The Group's other motor interests contributed a profit of US$37 million, 50% up on the previous year.
Earnings from the Singapore motor operations was 30% higher, primarily due to increased contribution from Mercedes-Benz passenger cars, after-sales, Kia passenger cars/taxis and used cars. In Malaysia, Cycle & Carriage Bintang's contribution was higher as it benefited from good demand for the newer Mercedes-Benz models. In Indonesia, Tunas Ridean's contribution was 25% lower in the face of competitive pressures in the car market and lower gains on disposal of ex-rental vehicles. In Vietnam, Truong Hai Auto Corporation's contribution was significantly higher due to the strong sales and good margins from vehicle sales as well as lower financing costs. The Group's operations in Myanmar incurred a small start-up loss.
Outlook
Trading conditions are likely to remain mixed for the Group's businesses for the remainder of the year. While Astra's operating performance is expected to be satisfactory, it will continue to face heightened competition in the car market and the effects of softer coal prices. The weaker rupiah exchange rate will reduce Astra's full-year contribution to the Group.
Ben Keswick
Chairman
1st August 2014
Statement pursuant to Rule 705(5) of the Listing Manual
The directors confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the accompanying unaudited interim financial results for the six months ended 30th June 2014 to be false or misleading in any material respect.
On behalf of the Directors
Ben Keswick
Director
Hassan Abas
Director
1st August 2014
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the six months ended 30th June 2014
Three months ended
Six months ended
30.6.2014
30.6.2013
Change
30.6.2014
30.6.2013
Change
Note
US$m
US$m
%
US$m
US$m
%
Revenue
4,830.6
5,191.1
-7
9,502.3
10,403.3
-9
Net operating costs
2
(4,339.6)
(4,704.3)
-8
(8,533.7)
(9,431.4)
-10
Operating profit
2
491.0
486.8
1
968.6
971.9
-
Financing income
28.9
18.4
57
53.1
31.3
70
Financing charges
(22.6)
(30.9)
-27
(42.7)
(58.8)
-27
Net financing income/(charges)
6.3
(12.5)
nm
10.4
(27.5)
nm
Share of associates' and joint
ventures' results after tax
164.8
168.5
-2
301.5
323.5
-7
Profit before tax
662.1
642.8
3
1,280.5
1,267.9
1
Tax
3
(144.2)
(126.1)
14
(261.3)
(235.4)
11
Profit after tax
517.9
516.7
-
1,019.2
1,032.5
-1
Profit attributable to:
Shareholders of the Company
215.0
221.7
-3
433.2
452.6
-4
Non-controlling interests
302.9
295.0
3
586.0
579.9
1
517.9
516.7
-
1,019.2
1,032.5
-1
US
US
US
US
Earnings per share
4
60.44
62.33
-3
121.79
127.24
-4
nm: not meaningful
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the six months ended 30th June 2014
Three months ended
Six months ended
30.6.2014
30.6.2013
30.6.2014
30.6.2013
US$m
US$m
US$m
US$m
Profit for the period
517.9
516.7
1,019.2
1,032.5
Items that will not be reclassified to profit or loss:
Defined benefit pension plans
- actuarial gain/(loss) arising during the period
(0.3)
(3.9)
5.6
(15.2)
- tax relating to components of other
comprehensive income
0.3
0.7
(1.2)
3.3
- share of other comprehensive income/(expense)
of associates and joint ventures, net of tax
0.8
(2.1)
2.1
(6.7)
0.8
(5.3)
6.5
(18.6)
Items that will be reclassified subsequently to profit
or loss:
Translation differences
- gain/(loss) arising during the period
(480.3)
(220.0)
155.3
(275.0)
Available-for-sale investments
- gain/(loss) arising during the period
(10.5)
(12.8)
4.7
(5.8)
- transfer to profit and loss
-
(2.2)
-
(12.4)
Cash flow hedges
- gain/(loss) arising during the period
(28.3)
14.9
(76.0)
3.7
- transfer to profit and loss
10.8
5.0
45.3
14.7
Tax relating to components of other
comprehensive income
3.7
(4.9)
7.2
(4.7)
Share of other comprehensive income/(expense)
of associates and joint ventures, net of tax
(4.8)
4.3
(5.2)
4.7
(509.4)
(215.7)
131.3
(274.8)
Other comprehensive income for the period
(508.6)
(221.0)
137.8
(293.4)
Total comprehensive income for the period
9.3
295.7
1,157.0
739.1
Attributable to:
Shareholders of the Company
(5.7)
131.2
488.1
331.1
Non-controlling interests
15.0
164.5
668.9
408.0
9.3
295.7
1,157.0
739.1
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 30th June 2014
At
At
Note
30.6.2014
31.12.2013
US$m
US$m
Non-current assets
Intangible assets
894.9
835.6
Leasehold land use rights
563.4
502.0
Property, plant and equipment
3,819.5
3,746.6
Investment properties
132.0
112.6
Plantations
897.3
856.2
Interests in associates and joint ventures
2,522.2
2,363.1
Non-current investments
456.0
428.8
Non-current debtors
2,815.7
2,625.5
Deferred tax assets
225.1
195.3
12,326.1
11,665.7
Current assets
Current investments
15.4
17.5
Stocks
1,737.2
1,346.4
Current debtors
4,992.6
4,475.6
Current tax assets
102.5
103.6
Bank balances and other liquid funds
- non-financial services companies
1,174.6
1,317.1
- financial services companies
322.3
284.0
1,496.9
1,601.1
8,344.6
7,544.2
Total assets
20,670.7
19,209.9
Non-current liabilities
Non-current creditors
306.6
261.5
Provisions
97.3
85.2
Long-term borrowings
5
- non-financial services companies
388.3
551.3
- financial services companies
1,743.9
1,673.6
2,132.2
2,224.9
Deferred tax liabilities
451.6
466.4
Pension liabilities
196.9
188.0
3,184.6
3,226.0
Current liabilities
Current creditors
3,486.8
2,839.8
Provisions
46.1
44.3
Current borrowings
5
- non-financial services companies
1,195.9
1,069.2
- financial services companies
2,095.7
2,079.0
3,291.6
3,148.2
Current tax liabilities
97.7
68.6
6,922.2
6,100.9
Total liabilities
10,106.8
9,326.9
Net assets
10,563.9
9,883.0
Equity
Share capital
6
632.6
632.6
Revenue reserve
7
4,493.1
4,329.9
Other reserves
8
(649.5)
(701.4)
Shareholders' funds
4,476.2
4,261.1
Non-controlling interests
9
6,087.7
5,621.9
Total equity
10,563.9
9,883.0
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the three months ended 30th June 2014
Attributable to shareholders of the Company
Attributable
Asset
Fair value
to non-
Share
Revenue
revaluation
Translation
and other
controlling
Total
capital
reserve
reserve
reserve
reserves
Total
interests
equity
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
2014
Balance at 1st April
632.6
4,571.7
338.8
(810.2)
42.9
4,775.8
6,392.7
11,168.5
Total comprehensive income
-
215.3
-
(198.9)
(22.1)
(5.7)
15.0
9.3
Dividends paid by the Company
-
(317.6)
-
-
-
(317.6)
-
(317.6)
Dividends paid to non-controlling
interests
-
-
-
-
-
-
(344.3)
(344.3)
Change in shareholding
-
23.7
-
-
-
23.7
24.3
48.0
Balance at 30th June
632.6
4,493.1
338.8
(1,009.1)
20.8
4,476.2
6,087.7
10,563.9
2013
Balance at 1st April
632.6
4,000.9
333.7
(168.0)
23.4
4,822.6
6,236.7
11,059.3
Total comprehensive income
-
219.9
-
(95.6)
6.9
131.2
164.5
295.7
Issue of shares to non-controlling
interests
-
-
-
-
-
-
19.3
19.3
Dividends paid by the Company
-
(373.1)
-
-
-
(373.1)
-
(373.1)
Dividends paid to non-controlling
interests
-
-
-
-
-
-
(410.2)
(410.2)
Change in shareholding
-
77.8
-
-
-
77.8
206.6
284.4
Acquisition/disposal of subsidiaries
-
-
-
-
-
-
67.8
67.8
Other
-
(1.1)
-
-
-
(1.1)
(1.1)
(2.2)
Balance at 30th June
632.6
3,924.4
333.7
(263.6)
30.3
4,657.4
6,283.6
10,941.0
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the six months ended 30th June 2014
Attributable to shareholders of the Company
Attributable
Asset
Fair value
to non-
Share
Revenue
revaluation
Translation
and other
controlling
Total
capital
reserve
reserve
reserve
reserves
Total
interests
equity
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
2014
Balance at 1st January
632.6
4,329.9
338.8
(1,078.8)
38.6
4,261.1
5,621.9
9,883.0
Total comprehensive income
-
436.2
-
69.7
(17.8)
488.1
668.9
1,157.0
Dividends paid by the Company
-
(317.6)
-
-
-
(317.6)
-
(317.6)
Dividends paid to non-controlling
interests
-
-
-
-
-
-
(345.3)
(345.3)
Change in shareholding
-
44.7
-
-
-
44.7
142.3
187.0
Other
-
(0.1)
-
-
-
(0.1)
(0.1)
(0.2)
Balance at 30th June
632.6
4,493.1
338.8
(1,009.1)
20.8
4,476.2
6,087.7
10,563.9
2013
Balance at 1st January
632.6
3,786.7
333.7
(143.5)
23.8
4,633.3
6,064.7
10,698.0
Total comprehensive income
-
444.7
-
(120.1)
6.5
331.1
408.0
739.1
Issue of shares to non-controlling
interests
-
-
-
-
-
-
19.3
19.3
Dividends paid by the Company
-
(373.1)
-
-
-
(373.1)
-
(373.1)
Dividends paid to non-controlling
interests
-
-
-
-
-
-
(411.6)
(411.6)
Change in shareholding
-
67.2
-
-
-
67.2
137.2
204.4
Acquisition/disposal of subsidiaries
-
-
-
-
-
-
67.1
67.1
Other
-
(1.1)
-
-
-
(1.1)
(1.1)
(2.2)
Balance at 30th June
632.6
3,924.4
333.7
(263.6)
30.3
4,657.4
6,283.6
10,941.0
Jardine Cycle & Carriage Limited
Company Balance Sheet at 30th June 2014
At
At
30.6.2014
31.12.2013
Note
US$m
US$m
Non-current assets
Property, plant and equipment
37.5
37.5
Interests in subsidiaries
1,416.2
1,397.8
Interests in associates and joint venture
128.8
127.1
Non-current investment
7.8
7.7
1,590.3
1,570.1
Current assets
Current debtors
42.5
44.1
Bank balances and other liquid funds
9.1
11.5
51.6
55.6
Total assets
1,641.9
1,625.7
Non-current liabilities
Deferred tax liabilities
0.2
0.2
0.2
0.2
Current liabilities
Current creditors
18.1
19.7
Current borrowings
100.1
31.6
Current tax liabilities
1.6
1.7
119.8
53.0
Total liabilities
120.0
53.2
Net assets
1,521.9
1,572.5
Equity
Share capital
6
632.6
632.6
Revenue reserve
7
454.5
525.1
Other reserves
8
434.8
414.8
Total equity
1,521.9
1,572.5
Net asset value per share
US$4.28
US$4.42
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the six months ended 30th June 2014
Three months ended
Six months ended
30.6.2014
30.6.2013
30.6.2014
30.6.2013
US$m
US$m
US$m
US$m
Profit after tax
251.1
288.9
247.0
285.2
Item that will be reclassified subsequently to profit
or loss:
Translation difference
14.1
(25.7)
20.0
(52.9)
Other comprehensive income for the period
14.1
(25.7)
20.0
(52.9)
Total comprehensive income for the period
265.2
263.2
267.0
232.3
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the six months ended 30th June 2014
For the three months ended 30th June 2014
Share
capital
Revenue
reserve
Translation
reserve
Fair value
and other
reserves
Total
equity
US$m
US$m
US$m
US$m
US$m
2014
Balance at 1st April
632.6
521.0
420.6
0.1
1,574.3
Total comprehensive income
-
251.1
14.1
-
265.2
Dividend paid
-
(317.6)
-
-
(317.6)
Balance at 30th June
632.6
454.5
434.7
0.1
1,521.9
2013
Balance at 1st April
632.6
508.5
442.4
(1.2)
1,582.3
Total comprehensive income
-
288.9
(25.7)
-
263.2
Dividend paid
-
(373.1)
-
-
(373.1)
Balance at 30th June
632.6
424.3
416.7
(1.2)
1,472.4
For the six months ended 30th June 2014
Share
capital
Revenue
reserve
Translation
reserve
Fair value
and other
reserves
Total
equity
US$m
US$m
US$m
US$m
US$m
2014
Balance at 1st January
632.6
525.1
414.7
0.1
1,572.5
Total comprehensive income
-
247.0
20.0
-
267.0
Dividend paid
-
(317.6)
-
-
(317.6)
Balance at 30th June
632.6
454.5
434.7
0.1
1,521.9
2013
Balance at 1st January
632.6
512.2
469.6
(1.2)
1,613.2
Total comprehensive income
-
285.2
(52.9)
-
232.3
Dividend paid
-
(373.1)
-
-
(373.1)
Balance at 30th June
632.6
424.3
416.7
(1.2)
1,472.4
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the six months ended 30th June 2014
Three months ended
Six months ended
30.6.2014
30.6.2013
30.6.2014
30.6.2013
Note
US$m
US$m
US$m
US$m
Cash flows from operating activities
Cash generated from operations
10
560.6
597.3
881.3
1,369.6
Interest paid
(16.5)
(24.2)
(33.3)
(49.8)
Interest received
30.4
19.1
53.0
30.6
Other finance costs paid
(5.3)
(5.2)
(9.3)
(8.2)
Income tax paid
(170.7)
(258.4)
(271.0)
(390.1)
(162.1)
(268.7)
(260.6)
(417.5)
Net cash flows from operating activities
398.5
328.6
620.7
952.1
Cash flows from investing activities
Sale of property, plant and equipment
7.3
6.5
18.3
10.8
Sale of subsidiaries, net of cash disposed
-
(0.1)
-
3.9
Sale of investments
5.6
30.9
11.6
90.0
Purchase of intangible assets
(34.1)
(33.5)
(73.1)
(62.4)
Purchase of leasehold land use rights
(28.3)
(71.4)
(42.2)
(86.7)
Purchase of property, plant and equipment
(202.3)
(188.1)
(360.6)
(366.2)
Purchase of investment properties
(5.1)
(1.6)
(8.3)
(1.6)
Additions to plantations
(14.1)
(19.2)
(26.9)
(35.7)
Purchase of subsidiaries, net of cash acquired
-
(33.9)
-
(79.3)
Purchase of shares in associates and joint
ventures
(2.4)
(51.5)
(85.2)
(61.2)
Purchase of investments
(16.0)
(23.6)
(33.8)
(78.2)
Capital repayment of investments
6.0
4.3
7.0
4.3
Dividends received from associates and joint
ventures (net)
259.9
213.7
259.9
230.3
Net cash flows used in investing activities
(23.5)
(167.5)
(333.3)
(432.0)
Cash flows from financing activities
Drawdown of loans
1,582.2
2,222.0
2,772.8
3,294.4
Repayment of loans
(1,528.6)
(1,654.6)
(2,767.1)
(2,970.9)
Change in controlling interests in subsidiaries
48.0
284.2
187.0
228.2
Investments by non-controlling interests
-
17.1
-
17.1
Dividends paid to non-controlling interests
(344.3)
(410.2)
(345.3)
(411.6)
Dividends paid by the Company
(317.6)
(373.1)
(317.6)
(373.1)
Net cash flows from/(used in) financing activities
(560.3)
85.4
(470.2)
(215.9)
Net change in cash and cash equivalents
(185.3)
246.5
(182.8)
304.2
Cash and cash equivalents at the beginning
of the period
1,695.3
1,262.3
1,601.0
1,201.0
Effect of exchange rate changes
(40.5)
(22.3)
51.3
(18.7)
Cash and cash equivalents at the end
of the period
1,469.5
1,486.5
1,469.5
1,486.5
Jardine Cycle & Carriage Limited
Notes to the financial statements for the six months ended 30th June 2014
1 Basis of preparation
The financial statements are consistent with those set out in the 2013 audited accounts which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). There have been no changes to the accounting policies described in the 2013 audited accounts except for the adoption of the following amendments and interpretation:
Amendments to IAS 32
Amendments to IAS 36
Amendments to IAS 39
IFRIC 21
Offsetting Financial Assets and Financial Liabilities
Recoverable Amount Disclosures for Non-Financial Assets
Novation of Derivatives and Continuation of Hedge Accounting
Levies
The adoption of these amendments and interpretation did not have any impact on the results of the Group.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. Estimates and judgments used in preparing the financial statements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.
The exchange rates used for translating assets and liabilities at the balance sheet date are US$1=S$1.2492 (2013: US$1=S$1.2656), US$1=RM3.2100 (2013: US$1=RM3.2815), US$1=IDR11,969 (2013: US$1=IDR12,189) and US$1=VND21,330 (2013: US$1=VND21,110).
The exchange rates used for translating the results for the period are US$1=S$1.2608 (2013: US$1=S$1.2467), US$1=RM3.2645 (2013: US$1=RM3.1001), US$1=IDR11,729 (2013: US$1=IDR9,756) and US$1=VND21,148 (2013: US$1=VND20,973).
2 Net operating costs and operating profit
Group
Three months ended
Six months ended
30.6.2014
30.6.2013
Change
30.6.2014
30.6.2013
Change
US$m
US$m
%
US$m
US$m
%
Cost of sales
(3,953.3)
(4,294.7)
-8
(7,773.8)
(8,630.7)
-10
Other operating income
76.1
80.4
-5
144.7
166.9
-13
Selling and distribution expenses
(206.7)
(223.2)
-7
(411.5)
(446.8)
-8
Administrative expenses
(241.8)
(262.0)
-8
(463.3)
(513.7)
-10
Other operating expenses
(13.9)
(4.8)
190
(29.8)
(7.1)
320
Net operating costs
(4,339.6)
(4,704.3)
-8
(8,533.7)
(9,431.4)
-10
Operating profit is determined after including:
Depreciation of property, plant and
equipment
(147.8)
(173.3)
-15
(293.9)
(346.9)
-15
Amortisation of intangible assets and
leasehold land use rights
(22.4)
(21.1)
6
(42.8)
(41.0)
4
Profit/(loss) on disposal of:
- property, plant and equipment
6.0
3.8
58
12.1
6.3
92
- investments
(0.2)
2.4
nm
(0.2)
11.7
nm
- associate and joint venture
8.6
-
100
8.6
-
100
Write-down of stocks
(12.7)
(7.8)
63
(12.7)
(11.8)
8
Loss on disposal/write-down of
repossessed assets
(11.7)
(15.6)
-25
(22.1)
(29.5)
-25
Impairment of debtors
(31.0)
(33.5)
-7
(55.3)
(57.8)
-4
Dividend and interest income from
investments
8.4
10.0
-16
19.0
22.6
-16
Foreign exchange gain/(loss) (1)
(11.1)
0.9
nm
(2.8)
14.7
nm
nm: not meaningful
(1) Changes due mainly to the effect of Rupiah exchange rates on assets/liabilities denominated in US Dollars
3 Tax
The provision for income tax is based on the statutory tax rates of the respective countries in which the companies operate after taking into account non-deductible expenses and group tax relief.
4 Earnings per share
Group
Three months ended
Six months ended
30.6.2014
30.6.2013
30.6.2014
30.6.2013
US$m
US$m
US$m
US$m
Basic earnings per share
Profit attributable to shareholders
215.0
221.7
433.2
452.6
Weighted average number of ordinary shares
in issue (millions)
355.7
355.7
355.7
355.7
Basic earnings per share
US60.44
US62.33
US121.79
US127.24
Diluted earnings per share
US60.44
US62.33
US121.79
US127.24
Underlying earnings per share
Underlying profit attributable to shareholders
194.6
221.7
412.8
452.6
Weighted average number of ordinary shares
in issue (millions)
355.7
355.7
355.7
355.7
Basic earnings per share
US54.71
US62.33
US116.05
US127.24
Diluted earnings per share
US54.71
US62.33
US116.05
US127.24
A reconciliation of the profit attributable to shareholders and underlying profit attributable to shareholders is as follows:
Group
Three months ended
Six months ended
30.6.2014
30.6.2013
30.6.2014
30.6.2013
US$m
US$m
US$m
US$m
Profit attributable to shareholders
215.0
221.7
433.2
452.6
Less:
Non-trading items (net of tax and non-
controlling interests)
Negative goodwill on acquisition of business
18.8
-
18.8
-
Gain on disposal of a joint venture
3.1
-
3.1
-
Loss on dilution of interest in an associate
(1.5)
-
(1.5)
-
20.4
-
20.4
-
Underlying profit attributable to shareholders
194.6
221.7
412.8
452.6
The profit attributable to shareholders by business is shown below:
Group
Three months ended
Six months ended
30.6.2014
30.6.2013
Change
30.6.2014
30.6.2013
Change
US$m
US$m
%
US$m
US$m
%
Astra
Automotive
79.5
112.5
-29
165.1
220.7
-25
Financial services
45.2
56.6
-20
87.0
110.3
-21
Heavy equipment and mining
44.1
36.7
20
85.0
72.4
17
Agribusiness
20.0
14.6
37
46.6
29.3
59
Infrastructure and logistics
3.6
5.1
-29
7.3
11.5
-37
Information technology
1.3
1.8
-28
2.4
2.8
-14
193.7
227.3
-15
393.4
447.0
-12
Less: Withholding tax on dividend
(12.2)
(13.9)
-12
(12.2)
(13.9)
-12
181.5
213.4
-15
381.2
433.1
-12
Other motor interests
Singapore
7.6
5.6
36
16.1
12.4
30
Malaysia
0.4
0.2
100
0.7
0.2
250
Indonesia (Tunas Ridean)
2.3
2.3
-
5.2
6.9
-25
Vietnam
7.5
4.0
88
14.9
5.0
198
Myanmar
(0.1)
-
nm
(0.2)
-
nm
17.7
12.1
46
36.7
24.5
50
Corporate costs
(4.6)
(3.8)
21
(5.1)
(5.0)
2
Underlying profit attributable to shareholders
194.6
221.7
-12
412.8
452.6
-9
5 Borrowings
Group
At
At
30.6.2014
31.12.2013
US$m
US$m
Long-term borrowings:
- secured
1,842.4
1,792.8
- unsecured
289.8
432.1
2,132.2
2,224.9
Current borrowings:
- secured
1,979.0
1,881.8
- unsecured
1,312.6
1,266.4
3,291.6
3,148.2
Total borrowings
5,423.8
5,373.1
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$2,346.8 million (31st December 2013: US$2,323.8 million).
6 Share capital
Company
2014
2013
US$m
US$m
Three months ended 30th June
Issued and fully paid:
Balance at 1st April and 30th June
- 355,712,660 (2013: 355,712,660) ordinary shares
632.6
632.6
Six months ended 30th June
Issued and fully paid:
Balance at 1st January and 30th June
- 355,712,660 (2013: 355,712,660) ordinary shares
632.6
632.6
The Company did not hold any treasury shares as at 30th June 2014 (30th June 2013: Nil).
The Company did not have any unissued shares under convertibles as at 30th June 2014 (30th June 2013: Nil).
There were no other rights, bonus or equity issues during the period between 1st April 2014 and 30th June 2014.
7 Revenue reserve
Group
Company
Three months ended 30th June
2014
2013
2014
2013
US$m
US$m
US$m
US$m
Balance at 1st April
4,571.7
4,000.9
521.0
508.5
Defined benefit pension plans
- actuarial loss
(0.1)
(1.2)
-
-
- deferred tax
0.1
0.2
-
-
Share of associates' and joint ventures' actuarial
gain/(loss) on defined benefit pension plans
0.3
(0.8)
-
-
Profit attributable to shareholders
215.0
221.7
251.1
288.9
Dividends paid by the Company
(317.6)
(373.1)
(317.6)
(373.1)
Change in shareholding
23.7
77.8
-
-
Other
-
(1.1)
-
-
Balance at 30th June
4,493.1
3,924.4
454.5
424.3
Group
Company
Six months ended 30th June
2014
2013
2014
2013
US$m
US$m
US$m
US$m
Balance at 1st January
4,329.9
3,786.7
525.1
512.2
Defined benefit pension plans
- actuarial gain/(loss)
2.2
(6.2)
-
-
- deferred tax
(0.5)
1.4
-
-
Share of associates' and joint ventures' actuarial
gain/(loss) on defined benefit pension plans
1.3
(3.1)
-
-
Profit attributable to shareholders
433.2
452.6
247.0
285.2
Dividends paid by the Company
(317.6)
(373.1)
(317.6)
(373.1)
Change in shareholding
44.7
67.2
-
-
Other
(0.1)
(1.1)
-
-
Balance at 30th June
4,493.1
3,924.4
454.5
424.3
8 Other reserves
Group
Company
2014
2013
2014
2013
US$m
US$m
US$m
US$m
Composition:
Asset revaluation reserve
338.8
333.7
-
-
Translation reserve
(1,009.1)
(263.6)
434.7
416.7
Fair value reserve
29.5
25.5
0.1
(1.2)
Hedging reserve
(12.0)
1.5
-
-
Other reserve
3.3
3.3
-
-
Balance at 30th June
(649.5)
100.4
434.8
415.5
Group
Company
Three months ended 30th June
2014
2013
2014
2013
US$m
US$m
US$m
US$m
Movements:
Asset revaluation reserve
Balance at 1st April and at 30th June
338.8
333.7
-
-
Translation reserve
Balance at 1st April
(810.2)
(168.0)
420.6
442.4
Translation difference
(198.9)
(95.6)
14.1
(25.7)
Balance at 30th June
(1,009.1)
(263.6)
434.7
416.7
Group
Company
Three months ended 30th June
2014
2013
2014
2013
US$m
US$m
US$m
US$m
Fair value reserve
Balance at 1st April
41.5
29.1
0.1
(1.2)
Available-for-sale investments
- fair value changes
(11.8)
(2.3)
-
-
- deferred tax
(0.1)
-
-
-
- transfer to profit and loss
-
(1.0)
-
-
Share of associates' and joint ventures' fair
value changes of available-for-sale
investments, net of tax
(0.1)
(0.3)
-
-
Balance at 30th June
29.5
25.5
0.1
(1.2)
Hedging reserve
Balance at 1st April
(1.9)
(9.0)
-
-
Cash flow hedges
- fair value changes
(15.4)
8.0
-
-
- deferred tax
2.2
(2.6)
-
-
- transfer to profit and loss
5.4
2.6
-
-
Share of associates' and joint ventures' fair
value changes of cash flow hedges, net of tax
(2.3)
2.5
-
-
Balance at 30th June
(12.0)
1.5
-
-
Other reserve
Balance at 1st April and 30th June
3.3
3.3
-
-
Group
Company
Six months ended 30th June
2014
2013
2014
2013
US$m
US$m
US$m
US$m
Movements:
Asset revaluation reserve
Balance at 1st January and 30th June
338.8
333.7
-
-
Translation reserve
Balance at 1st January
(1,078.8)
(143.5)
414.7
469.6
Translation difference
69.7
(120.1)
20.0
(52.9)
Balance at 30th June
(1,009.1)
(263.6)
434.7
416.7
Fair value reserve
Balance at 1st January
31.1
28.9
0.1
(1.2)
Available-for-sale investments
- fair value changes
(2.3)
3.1
-
-
- deferred tax
(0.1)
-
-
-
- transfer to profit and loss
-
(5.9)
-
-
Share of associates' and joint ventures' fair
value changes of available-for-sale
investments, net of tax
0.8
(0.6)
-
-
Balance at 30th June
29.5
25.5
0.1
(1.2)
Hedging reserve
Balance at 1st January
4.2
(8.4)
-
-
Cash flow hedges
- fair value changes
(39.5)
1.9
-
-
- deferred tax
4.0
(2.4)
-
-
- transfer to profit and loss
22.7
7.4
-
-
Share of associates' and joint ventures' fair
value changes of cash flow hedges, net of tax
(3.4)
3.0
-
-
Balance at 30th June
(12.0)
1.5
-
-
Other reserve
Balance at 1st January and 30th June
3.3
3.3
-
-
9 Non-controlling interests
Group
Three months ended 30th June
2014
2013
US$m
US$m
Balance at 1st April
6,392.7
6,236.7
Available-for-sale investments
- fair value changes
1.3
(10.5)
- deferred tax
(0.2)
0.1
- transfer to profit and loss
-
(1.2)
Share of associates' and joint ventures' fair value changes of
available-for-sale investments, net of tax
(0.1)
(0.3)
Cash flow hedges
- fair value changes
(12.9)
6.9
- deferred tax
1.8
(2.4)
- transfer to profit and loss
5.4
2.4
Share of associates' and joint ventures' fair value changes of cash
flow hedges, net of tax
(2.3)
2.4
Defined benefit pension plans
- actuarial loss
(0.2)
(2.7)
- deferred tax
0.2
0.5
Share of associates' and joint ventures' actuarial gain/(loss) on
defined benefit pension plans
0.5
(1.3)
Translation difference
(281.4)
(124.4)
Profit for the period
302.9
295.0
Issue of shares
-
19.3
Dividends paid
(344.3)
(410.2)
Change in shareholding
24.3
206.6
Acquisition/disposal of subsidiaries
-
67.8
Other
-
(1.1)
Balance at 30th June
6,087.7
6,283.6
Group
Six months ended 30th June
2014
2013
US$m
US$m
Balance at 1st January
5,621.9
6,064.7
Available-for-sale investments
- fair value changes
7.0
(8.9)
- deferred tax
(0.2)
0.1
- transfer to profit and loss
-
(6.5)
Share of associates' and joint ventures' fair value changes of
available-for-sale investments, net of tax
0.8
(0.6)
Cash flow hedges
- fair value changes
(36.5)
1.8
- deferred tax
3.5
(2.4)
- transfer to profit and loss
22.6
7.3
Share of associates' and joint ventures' fair value changes of cash
flow hedges, net of tax
(3.4)
2.9
Defined benefit pension plans
- actuarial gain/(loss)
3.4
(9.0)
- deferred tax
(0.7)
1.9
Share of associates' and joint ventures' actuarial gain/(loss) on
defined benefit pension plans
0.8
(3.6)
Translation difference
85.6
(154.9)
Profit for the period
586.0
579.9
Issue of shares
-
19.3
Dividends paid
(345.3)
(411.6)
Change in shareholding
142.3
137.2
Acquisition/disposal of subsidiaries
-
67.1
Other
(0.1)
(1.1)
Balance at 30th June
6,087.7
6,283.6
10 Cash flows from operating activities
Group
Three months ended
Six months ended
30.6.2014
30.6.2013
30.6.2014
30.6.2013
US$m
US$m
US$m
US$m
Profit before tax
662.1
642.8
1,280.5
1,267.9
Adjustments for:
Financing income
(28.9)
(18.4)
(53.1)
(31.3)
Financing charges
22.6
30.9
42.7
58.8
Share of associates' and joint ventures' results
after tax
(164.8)
(168.5)
(301.5)
(323.5)
Depreciation of property, plant and equipment
147.8
173.3
293.9
346.9
Amortisation of intangible assets and leasehold
land use rights
22.4
21.1
42.8
41.0
(Profit)/loss on disposal of:
- property, plant and equipment
(6.0)
(3.8)
(12.1)
(6.3)
- investments
0.2
(2.4)
0.2
(11.7)
- plantations
1.2
-
-
-
- subsidiaries
-
-
-
(1.0)
- associate and joint venture
(8.6)
-
(8.6)
-
Loss on disposal/write-down of repossessed assets
11.7
15.6
22.1
29.5
Write-down of stocks
12.7
7.8
12.7
11.8
Impairment of debtors
31.0
33.5
55.3
57.8
Changes in provisions
6.5
9.8
14.6
16.4
Foreign exchange loss
3.6
7.6
17.4
2.6
51.4
106.5
126.4
191.0
Operating profit before working capital changes
713.5
749.3
1,406.9
1,458.9
Changes in working capital:
Stocks (1)
(233.3)
1.8
(416.3)
48.9
Financing debtors (2)
(147.7)
(252.8)
(277.4)
(399.8)
Debtors (3)
(64.6)
(85.5)
(468.2)
(283.5)
Creditors (4)
287.1
173.8
625.3
525.9
Pensions
5.6
10.7
11.0
19.2
(152.9)
(152.0)
(525.6)
(89.3)
Cash flows from operating activities
560.6
597.3
881.3
1,369.6
(1) Increase mainly due to slower sales of certain inventories
(2) Increase mainly due to higher financing activities
(3) Increase mainly due to higher sales volume and prepayments for purchase of assets
(4) Increase mainly due to purchases to support sales activities and accrual for operating expenses
11 Dividend and closure of books
The Board has declared an interim one-tier tax exempt dividend of US18 per share (2013: US18 per share).
NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members will be closed from 5.00 pm on Friday, 29th August 2014 ("Books Closure Date") up to, and including Monday, 1st September 2014 for the purpose of determining shareholders' entitlement to the interim dividend.
Duly completed transfers of shares in physical scrip received by Jardine Cycle & Carriage Limited's Share Registrar, M&C Services Private Limited at 112 Robinson Road #05-01, Singapore 068902 up to 5.00 pm on the Books Closure Date will be registered before entitlements to the interim dividend are determined. Shareholders (being Depositors) whose securities accounts with The Central Depository (Pte) Limited are credited with shares as at the Books Closure Date will rank for the interim dividend.
The interim dividend will be paid on or about Thursday, 9th October 2014. Shareholders will have the option to receive the interim dividend in Singapore dollars and in the absence of an election, the interim dividend will be paid in US dollars. Details on this elective will be furnished to shareholders in due course.
12 Interested person transactions
Aggregate value of all
Aggregate value of all
interested person
interested person
transactions (excluding
Transactions
transactions less than
conducted under
S$100,000 and
shareholders'
transactions conducted
mandate pursuant to
under shareholders'
Rule 920 (excluding
mandate pursuant to
transactions less than
Name of interested person
Rule 920)
S$100,000)
US$m
US$m
Three months ended 30th June 2014
Jardine Matheson Limited
- management support services
-
1.1
PT Hero Supermarket Tbk
- provision of transportation services
-
0.4
Hongkong Land (Singapore) Pte Ltd
- sale of a motor vehicle
-
0.2
- purchase of a used motor vehicle
-
0.1
-
1.8
Six months ended 30th June 2014
Jardine Matheson Limited
- management support services
-
2.3
PT Hero Supermarket Tbk
- provision of transportation services
-
0.9
Hongkong Land Group Limited
- interest on loan
-
0.3
Hongkong Land (Singapore) Pte Ltd
- sale of a motor vehicle
-
0.2
- purchase of a used motor vehicle
-
0.1
PT Brahmayasa Bahtera
- loan and interest on loan from PT Astra
International Tbk
5.5
-
Director of the Company, Lim Hwee Hua
- sale of a motor vehicle
-
0.3
- purchase of a used motor vehicle
-
0.1
5.5
4.2
13 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.
No significant event or transaction has occurred between 1st July 2014 and the date of this report.
- end -
For further information, please contact:
Jardine Cycle & Carriage Limited
Ho Yeng Tat
Tel: 65 64708108
The full text of the Financial Statements and Dividend Announcement for the six months ended 30th June 2014 can be accessed through the internet at 'www.jcclgroup.com'.
Corporate Profile
Jardine Cycle & Carriage ("JC&C") is a leading Singapore-listed company and a member of the Jardine Matheson Group. It has an interest of just over 50% in Astra, apremier listed Indonesian conglomerate, as well as other motor interests in Southeast Asia. Together with its subsidiaries and associates, JC&C employs around 235,000people across Indonesia, Malaysia, Singapore, Vietnam and Myanmar.
Astra is the largest independent automotive group in Southeast Asia, with further interests in financial services, heavy equipment and mining, agribusiness, infrastructure and logistics, and information technology. JC&C has motorbusinesses operating in Singapore, Malaysiaand Myanmarunder the Cycle & Carriage banner, as well as other motor interests throughTunasRideanin Indonesiaand Truong Hai AutoCorporation in Vietnam.The JC&C Group represents some of the world's leading motoring marques including Mercedes-Benz, Toyota, Honda and Kia.
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR LIFLATAILIIS
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