REG - Jardine StrategicJardine Matheson Hdg - JC&C 2017 Half Year Financial Statements <Origin Href="QuoteRef">JARD.SI</Origin> <Origin Href="QuoteRef">JSH.SI</Origin> - Part 2
04/08/2017 10:21
- Part 2: For the preceding part double click ID:nRSD8881Ma
Group
Three months ended Six months ended
30.6.2017 30.6.2016 Change 30.6.2017 30.6.2016 Change
US$m US$m % US$m US$m %
Cost of sales (3,497.6) (3,328.2) 5 (6,918.7) (6,330.0) 9
Other operating income 76.8 58.6 31 128.6 112.8 14
Selling and distribution expenses (226.3) (190.9) 19 (422.5) (361.5) 17
Administrative expenses (242.4) (221.7) 9 (473.4) (443.3) 7
Other operating expenses (27.7) (17.2) 61 (41.1) (41.0) -
Net operating costs (3,917.2) (3,699.4) 6 (7,727.1) (7,063.0) 9
Group
Three months ended Six months ended
30.6.2017 30.6.2016 Change 30.6.2017 30.6.2016 Change
US$m US$m % US$m US$m %
Operating profit is determined after including:
Depreciation of property, plant
and equipment (123.7) (120.3) 3 (246.2) (243.7) 1
Depreciation of bearer plants (6.0) (5.1) 18 (11.8) (10.1) 17
Amortisation of leasehold land
use rights and intangible assets (26.3) (22.8) 15 (51.0) (45.7) 12
Profit/(loss) on disposal of:
- leasehold land use rights (0.2) 2.9 nm 1.0 2.9 -66
- property, plant and equipment 2.5 1.1 127 3.2 7.0 -54
- investment properties (1) (13.4) - nm (13.4) - nm
- investments 4.8 0.1 nm 4.8 - nm
- associate and joint venture (2) 12.7 (4.3) nm 12.7 (4.3) nm
Loss on disposal/write-down of
repossessed assets (13.1) (17.7) -26 (27.1) (32.3) -16
Dividend and interest income
from investments 18.0 13.9 29 27.7 24.0 15
Write-down of stocks (4.0) (8.0) -50 (5.1) (8.8) -42
Impairment of debtors (3) (42.4) (29.5) 44 (79.3) (47.6) 67
Net exchange loss (4) (2.1) (4.8) -56 (5.7) (20.8) -73
nm - not meaningful
(1) Loss on sale of property to a joint venture
(2) Gain on partial disposal of interest in a joint venture (2016: Loss on dilution of interest in an associate)
(3) Increase due mainly to impairment of financing debtors
(4) Decrease due mainly to lower net impact of stronger rupiah on monetary assets and 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
30.6.2017 30.6.2016 30.6.2017 30.6.2016
US$m US$m US$m US$m
Basic and diluted earnings per share
Profit attributable to shareholders 188.7 187.0 399.1 327.6
Weighted average number of shares
in issue (millions) 395.2 395.2 395.2 395.2
Basic earnings per share US¢48 US¢47 US¢101 US¢83
Diluted earnings per share US¢48 US¢47 US¢101 US¢83
Underlying earnings per share
Underlying profit attributable to
shareholders 173.3 191.3 375.3 331.9
Weighted average number of shares
in issue (millions) 395.2 395.2 395.2 395.2
Basic earnings per share US¢44 US¢48 US¢95 US¢84
Diluted earnings per share US¢44 US¢48 US¢95 US¢84
As at 30th June 2016 and 2017, 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
Three months ended Six months ended
30.6.2017 30.6.2016 30.6.2017 30.6.2016
US$m US$m US$m US$m
Profit attributable to shareholders 188.7 187.0 399.1 327.6
Less: Non-trading items
Fair value changes of an investment
property held by a joint venture 10.3 - 10.3 -
Gain on partial disposal of interest in a
joint venture 5.0 - 5.0 -
Gain on valuation at fair value of an
investment held by an associate 0.1 - 8.5 -
Loss on dilution of interest in an associate - (4.3) - (4.3)
15.4 (4.3) 23.8 (4.3)
Underlying profit attributable to
shareholders 173.3 191.3 375.3 331.9
Non-trading items are separately identified to provide greater understanding of the Group`s underlying business
performance. Items classified as non-trading items include fair value gains or losses on revaluation of investment
properties and agricultural produce; gains and losses arising from the sale of businesses, investments and properties;
impairment of non-depreciable intangible assets and other investments; provisions for closure of businesses;
acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require
inclusion in order to provide additional insight into the Group's underlying business performance.
5 Borrowings
Group
At At
30.6.2017 31.12.2016
US$m US$m
Long-term borrowings:
- secured 1,535.4 1,229.2
- unsecured 527.1 638.2
2,062.5 1,867.4
Current borrowings:
- secured 1,856.7 1,972.2
- unsecured 1,990.3 1,471.0
3,847.0 3,443.2
Total borrowings 5,909.5 5,310.6
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$1,914.6 million (31st December 2016: US$1,884.7 million).
6 Share capital
Company
2017 2016
US$m US$m
Three months ended 30th June
Issued and fully paid:
Balance at 1st April and 30th June
- 395,236,288 (2016: 395,236,288) ordinary shares 1,381.0 1,381.0
Six months ended 30th June
Issued and fully paid:
Balance at 1st January and 30th June
- 395,236,288 (2016: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the period between 1st April 2017 and 30th June 2017. The Company did
not hold any treasury shares as at 30th June 2017 (30th June 2016: Nil) and did not have any unissued shares under
convertibles as at 30th June 2017 (30th June 2016: Nil).
As at 30th June 2017, the Company had fully utilised the S$1,028 million rights issue proceeds raised from the 2015 rights
issue exercise. The utilisation of the rights issue proceeds was in accordance with the intended use of proceeds as stated
in the Offer Information Statement dated 29th June 2015, registered by the Company with the Monetary Authority of
Singapore.
7 Revenue reserve
Group Company
Three months ended 30th June 2017 2016 2017 2016
US$m US$m US$m US$m
Movements:
Balance at 1st April 5,719.0 5,206.2 653.9 623.3
Asset revaluation reserve realised on disposal of assets 0.8 - - -
Defined benefit pension plans
- remeasurements - 0.2 - -
- deferred tax - (0.1) - -
Share of associates' and joint ventures' remeasurements
of defined benefit pension plans, net of tax (0.1) (1.0) - -
Profit attributable to shareholders 188.7 187.0 211.9 189.7
Dividend paid by the Company (220.3) (201.0) (220.3) (201.0)
Other - (1.0) - -
Balance at 30th June 5,688.1 5,190.3 645.5 612.0
Group Company
Six months ended 30th June 2017 2016 2017 2016
US$m US$m US$m US$m
Movements:
Balance at 1st January 5,508.7 5,065.3 654.2 628.2
Asset revaluation reserve realised on disposal of assets 0.8 0.2 - -
Defined benefit pension plans
- remeasurements 0.3 0.6 - -
- deferred tax (0.1) (0.2) - -
Share of associates' and joint ventures' remeasurements
of defined benefit pension plans, net of tax (0.4) (1.3) - -
Profit attributable to shareholders 399.1 327.6 211.6 184.8
Dividend paid by the Company (220.3) (201.0) (220.3) (201.0)
Change in shareholding - 0.1 - -
Other - (1.0) - -
Balance at 30th June 5,688.1 5,190.3 645.5 612.0
8 Other reserves
Group Company
2017 2016 2017 2016
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 399.6 393.8 - -
Translation reserve (1,472.4) (1,421.7) 283.1 332.3
Fair value reserve 17.0 15.3 4.7 3.5
Hedging reserve (11.8) (9.1) - -
Other reserve 3.3 3.3 - -
Balance at 30th June (1,064.3) (1,018.4) 287.8 335.8
Three months ended 30th June
Movements:
Asset revaluation reserve
Balance at 1st April 400.4 346.8 - -
Revaluation surplus - 47.0 - -
Reserve realised on disposal of assets (0.8) - - -
Balance at 30th June 399.6 393.8 - -
Translation reserve
Balance at 1st April (1,476.4) (1,455.6) 249.6 327.3
Translation difference 4.0 33.9 33.5 5.0
Balance at 30th June (1,472.4) (1,421.7) 283.1 332.3
Fair value reserve
Balance at 1st April 18.5 12.7 4.7 3.5
Available-for-sale investments
- fair value changes 0.9 2.6 - -
- transfer to profit and loss (2.3) - - -
Share of associates' and joint ventures' fair
value changes of available-for-sale investments,
net of tax (0.1) - - -
Balance at 30th June 17.0 15.3 4.7 3.5
Hedging reserve
Balance at 1st April (12.6) (10.7) - -
Cash flow hedges
- fair value changes 0.2 (2.7) - -
- deferred tax (0.5) (0.5) - -
- transfer to profit and loss 1.9 5.2 - -
Share of associates' and joint ventures' fair
value changes of cash flow hedges, net of tax (0.8) (0.4) - -
Balance at 30th June (11.8) (9.1) - -
Other reserve
Balance at 1st April and 30th June 3.3 3.3 - -
Group Company
Six months ended 30th June 2017 2016 2017 2016
US$m US$m US$m US$m
Movements:
Asset revaluation reserve
Balance at 1st January 400.4 347.0 - -
Revaluation surplus - 47.0 - -
Reserve realised on disposal of assets (0.8) (0.2) - -
Balance at 30th June 399.6 393.8 - -
Translation reserve
Balance at 1st January (1,546.7) (1,642.1) 175.5 223.9
Translation difference 74.3 220.4 107.6 108.4
Balance at 30th June (1,472.4) (1,421.7) 283.1 332.3
Fair value reserve
Balance at 1st January 13.0 5.2 4.7 3.5
Available-for-sale investments
- fair value changes 5.4 8.6 - -
- deferred tax (0.1) (0.1) - -
- transfer to profit and loss (2.3) 0.1 - -
Share of associates' and joint ventures' fair
value changes of available-for-sale investments,
net of tax 1.0 1.5 - -
Balance at 30th June 17.0 15.3 4.7 3.5
Hedging reserve
Balance at 1st January (5.1) 6.4 - -
Cash flow hedges
- fair value changes (9.8) (26.2) - -
- deferred tax 1.5 4.4 - -
- transfer to profit and loss 4.1 9.5 - -
Share of associates' and joint ventures' fair
value changes of cash flow hedges, net of tax (2.5) (3.2) - -
Balance at 30th June (11.8) (9.1) - -
Other reserve
Balance at 1st January and 30th June 3.3 3.3 - -
9 Non-controlling interests
Group
Three months ended 30th June 2017 2016
US$m US$m
Balance at 1st April 6,629.5 5,910.6
Asset revaluation surplus - 46.7
Available-for-sale investments
- fair value changes 0.7 3.2
- deferred tax - -
- transfer to profit and loss (2.5) 0.1
Share of associates' and joint ventures' fair value changes of
available-for-sale investments, net of tax (0.1) -
Cash flow hedges
- fair value changes 0.5 (4.0)
- deferred tax (0.6) (0.2)
- transfer to profit and loss 2.0 5.1
Share of associates' and joint ventures' fair value changes of cash
flow hedges, net of tax (0.8) (0.5)
Remeasurements of defined benefit pension plans (0.1) 0.4
Share of associates' and joint ventures' remeasurements
of defined benefit pension plans, net of tax - (1.0)
Translation difference 1.9 41.4
Profit for the period 230.1 197.4
Dividends paid (253.7) (242.5)
Issue of shares to non-controlling interests - 82.8
Change in shareholding (0.1) -
Other 5.2 1.2
Balance at 30th June 6,612.0 6,040.7
Group
Six months ended 30th June 2017 2016
US$m US$m
Balance at 1st January 6,321.8 5,560.9
Asset revaluation surplus - 46.7
Available-for-sale investments
- fair value changes 5.7 10.2
- deferred tax (0.1) (0.1)
- transfer to profit and loss (2.5) 0.1
Share of associates' and joint ventures' fair value changes of
available-for-sale investments, net of tax 0.9 1.6
Cash flow hedges
- fair value changes (10.8) (29.9)
- deferred tax 1.7 5.3
- transfer to profit and loss 4.1 9.4
Share of associates' and joint ventures' fair value changes of cash
flow hedges, net of tax (2.4) (3.2)
Defined benefit pension plans
- remeasurements 0.5 1.1
- deferred tax (0.1) (0.2)
Share of associates' and joint ventures' remeasurements
of defined benefit pension plans, net of tax (0.4) (1.5)
Translation difference 54.7 251.4
Profit for the period 488.7 347.5
Dividends paid (260.7) (242.6)
Issue of shares to non-controlling interests - 82.8
Change in shareholding (0.1) -
Acquisition of subsidiary 6.6 -
Other 4.4 1.2
Balance at 30th June 6,612.0 6,040.7
10 Cash flows from operating activities
Group
Three months ended Six months ended
30.6.2017 30.6.2016 30.6.2017 30.6.2016
US$m US$m US$m US$m
Profit before tax 528.0 477.3 1,096.0 834.0
Adjustments for:
Financing income (28.1) (22.7) (56.0) (41.6)
Financing charges 40.5 36.0 78.9 65.0
Share of associates' and joint ventures' results after tax (171.1) (135.9) (326.9) (217.4)
Depreciation of property, plant and equipment 123.7 120.3 246.2 243.7
Depreciation of bearer plants 6.0 5.1 11.8 10.1
Amortisation of leasehold land use rights and intangible
assets 26.3 22.8 51.0 45.7
(Profit)/loss on disposal of:
- leasehold land use rights 0.2 (2.9) (1.0) (2.9)
- property, plant and equipment (2.5) (1.1) (3.2) (7.0)
- investment properties 13.4 - 13.4 -
- investments (4.8) (0.1) (4.8) -
- associate and joint venture (12.7) 4.3 (12.7) 4.3
Loss on disposal/write-down of repossessed assets 13.1 17.7 27.1 32.3
Write-down of stocks 4.0 8.0 5.1 8.8
Impairment of debtors 42.4 29.5 79.3 47.6
Changes in provisions (3.4) 9.2 4.8 17.5
Foreign exchange loss 0.1 0.4 8.7 12.6
47.1 90.6 121.7 218.7
Operating profit before working capital changes 575.1 567.9 1,217.7 1,052.7
Changes in working capital:
Stocks (1) 95.1 84.7 (106.6) 174.2
Concession rights (20.7) (15.0) (45.4) (23.5)
Financing debtors (2) (103.8) (136.9) (147.0) (165.6)
Debtors (2) (167.2) (85.1) (425.5) (190.8)
Creditors (3) 286.1 (29.3) 564.6 37.3
Pensions 7.2 7.1 14.4 13.2
96.7 (174.5) (145.5) (155.2)
Cash flows from operating activities 671.8 393.4 1,072.2 897.5
(1) Increase in stocks balance due mainly to purchases to support sales activities
(2) Increase in debtors balance due mainly to higher sales activities
(3) Increase in creditors balance due mainly to purchases to support sales activities and deferred payments
11 Dividend and closure of books
The Board has declared an interim one-tier tax exempt dividend of US¢18 per share (2016: US¢18 per share).
NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members of the Company will be closed from 5.00 p.m. on
Monday, 28th August 2017 ("Books Closure Date") up to, and including Tuesday, 29th August 2017 for the purpose of
determining shareholders' entitlement to the interim dividend.
Duly completed transfers of shares of the Company in physical scrip received by the Company's Share Registrar, M & C
Services Private Limited at 112 Robinson Road #05-01, Singapore 068902 up to 5.00 p.m. on the 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 of the Company as at 5.00 p.m. on the Books
Closure Date will rank for the interim dividend.
The interim dividend will be paid on Friday, 6th October 2017. Shareholders will have the option to receive the interim
dividend in Singapore dollars and in the absence of any 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 interested person transactions (excluding transactions less than S$100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920) Aggregate value of all interested person transactions conducted under shareholders' mandate pursuant to Rule 920 (excluding transactions less than S$100,000)
Name of interested person US$m US$m
Three months ended 30th June 2017
Jardine Matheson Limited
- management support services - 1.1
Jardine Lloyd Thompson PCS Pte Ltd
- purchase of a used car - 0.1
PT Hero Supermarket Tbk
- transportation services - 0.1
- 1.3
Six months ended 30th June 2017
Jardine Matheson Limited
- management support services - 2.3
Jardine Lloyd Thompson PCS Pte Ltd
- purchase of a used car - 0.1
Jardine Matheson (Singapore) Ltd
- rental of premises - 0.1
PT Hero Supermarket Tbk
- transportation services - 0.2
- 2.7
13 Additional information
Group
Three months ended Six months ended
30.6.2017 30.6.2016 Change 30.6.2017 30.6.2016 Change
US$m US$m % US$m US$m %
Astra International
Automotive 65.0 82.0 -21 145.7 136.0 7
Financial services 21.1 23.0 -8 63.3 46.8 35
Heavy equipment and mining 43.4 25.5 70 77.3 41.9 84
Agribusiness 7.3 11.2 -35 31.3 23.6 33
Infrastructure & logistics 1.6 2.7 -41 4.1 5.2 -21
Information technology 1.1 1.4 -21 2.1 2.7 -22
Property (1.0) 0.1 nm (0.8) 0.2 nm
138.5 145.9 -5 323.0 256.4 26
Less: Withholding tax on dividend (7.7) (7.7) - (7.7) (7.7) -
130.8 138.2 -5 315.3 248.7 27
Direct Motor Interests
Vietnam 24.8 22.6 10 32.2 43.1 -25
Singapore 12.2 11.7 4 24.1 21.6 11
Malaysia 1.3 2.9 -55 1.3 4.3 -70
Indonesia (Tunas Ridean) 3.5 5.9 -41 6.9 9.3 -26
Myanmar (1.7) (0.1) nm (1.9) (0.1) nm
40.1 43.0 -7 62.6 78.2 -20
Other Interests 8.3 15.3 -46 8.3 15.3 -46
Corporate costs (5.9) (5.2) 13 (10.9) (10.3) 6
Underlying profit attributable to
shareholders 173.3 191.3 -9 375.3 331.9 13
nm - not meaningful
14 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.
On 28th July 2017, the Company disposed its 15% interest in Mercedes-Benz Financial Services Singapore Ltd ("MBFS") for
approximately US$12 million to Daimler Vermögens-und Beteiligungsgesellschaft mbH, the nominee of Daimler Financial
Services AG ("DFS") and the current 85% shareholder of MBFS, pursuant to the exercise of a put option under the Share
Purchase and Transfer Agreement signed between the Company and DFS.
No significant event or transaction other than as contained in this report has occurred between 1st July 2017 and the date
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 Manual.
- 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 period ended 30th June 2017 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 International ("Astra"), a premier listed Indonesian conglomerate, as well as Direct
Motor Interests and Other Interests in Southeast Asia. Together with its subsidiaries and associates, JC&C employs over
240,000 people across Indonesia, Vietnam, Singapore, Thailand, Malaysia 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, information technology and property. JC&C's Direct Motor
Interests operate in Singapore, Malaysia and Myanmar under the Cycle & Carriage banner, and through Tunas Ridean in
Indonesia and Truong Hai Auto Corporation in Vietnam. JC&C's Other Interests comprise interests in market leading
businesses in the region through which JC&C gains exposure to key economies by supporting such businesses in their long
term development.
Jardine Matheson is a diversified business group focused principally on Asia. Its businesses comprise a combination of cash
generating activities and long-term property assets. In addition to its 75% shareholding in the Company, the Jardine
Matheson Group's interests include Jardine Pacific, Jardine Motors, Jardine Lloyd Thompson, Hongkong Land, Dairy Farm and
Mandarin Oriental. These companies are leaders in the fields of engineering and construction, transport services, motor
vehicles, insurance broking, property investment and development, retailing, restaurants and luxury hotels.
This information is provided by RNS
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