REG - Jardine StrategicJardine Matheson Hdg - JC&C 2017 Third Quarter Financial Statements <Origin Href="QuoteRef">JARD.SI</Origin> <Origin Href="QuoteRef">JSH.SI</Origin> - Part 2
08/11/2017 09:20
- Part 2: For the preceding part double click ID:nRSH6566Va
Three months ended Nine months ended
30.9.2017 30.9.2016 Change 30.9.2017 30.9.2016 Change
US$m US$m % US$m US$m %
Cost of sales (3,558.1) (3,192.8) 11 (10,476.8) (9,522.8) 10
Other operating income 46.0 64.4 -29 174.6 177.2 -1
Selling and distribution expenses (226.7) (179.7) 26 (649.2) (541.2) 20
Administrative expenses (236.1) (224.6) 5 (709.5) (667.9) 6
Other operating expenses (18.7) (18.2) 3 (59.8) (59.2) 1
Net operating costs (3,993.6) (3,550.9) 12 (11,720.7) (10,613.9) 10
Group
Three months ended Nine months ended
30.9.2017 30.9.2016 Change 30.9.2017 30.9.2016 Change
US$m US$m % US$m US$m %
Operating profit is determined after including:
Depreciation of property, plant
and equipment (126.6) (121.3) 4 (372.8) (365.0) 2
Depreciation of bearer plants (6.1) (5.5) 11 (17.9) (15.6) 15
Amortisation of leasehold land
use rights and intangible assets (26.2) (25.7) 2 (77.2) (71.4) 8
Profit/(loss) on disposal of:
- leasehold land use rights 0.4 0.1 300 1.4 3.0 -53
- property, plant and equipment 0.8 2.1 -62 4.0 9.1 -56
- investment properties (1) - - - (13.4) - nm
- investments 5.5 7.3 -25 10.3 7.3 41
- associates and joint ventures (2) (17.2) 2.4 nm (4.5) (1.9) 137
Loss on disposal/write-down of
repossessed assets (15.6) (14.3) 9 (42.7) (46.6) -8
Dividend and interest income
from investments 12.5 10.3 21 40.2 34.3 17
Write-down of stocks (2.3) 5.9 nm (7.4) (2.9) 155
Impairment of debtors (3) (44.1) (36.6) 20 (123.4) (84.2) 47
Net exchange loss (4) 2.3 (9.0) nm (3.4) (29.8) -89
nm - not meaningful
(1) Loss on sale of property to a joint venture
(2) Loss on disposal of a joint venture in third quarter 2017 partly offset by gain on partial disposal of interest
in a joint
venture in the previous quarter
(3) Increase mainly due to impairment of financing debtors
(4) Changes mainly due to fluctuation of 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 Nine months ended
30.9.2017 30.9.2016 30.9.2017 30.9.2016
US$m US$m US$m US$m
Basic and diluted earnings per share
Profit attributable to shareholders 211.1 186.2 610.2 513.8
Weighted average number of shares
in issue (millions) 395.2 395.2 395.2 395.2
Basic earnings per share US¢53 US¢47 US¢154 US¢130
Diluted earnings per share US¢53 US¢47 US¢154 US¢130
Underlying earnings per share
Underlying profit attributable to
shareholders 214.8 186.2 590.1 518.1
Weighted average number of shares
in issue (millions) 395.2 395.2 395.2 395.2
Basic earnings per share US¢54 US¢47 US¢149 US¢131
Diluted earnings per share US¢54 US¢47 US¢149 US¢131
As at 30th September 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 Nine months ended
30.9.2017 30.9.2016 30.9.2017 30.9.2016
US$m US$m US$m US$m
Profit attributable to shareholders 211.1 186.2 610.2 513.8
Less: Non-trading items
Fair value changes of an investment
property held by a joint venture - - 10.3 -
Gain on disposal of an investment 4.9 - 4.9 -
Net loss on disposal of interests in
subsidiary and joint ventures (8.5) - (3.5) -
Gain/loss on valuation at fair value of an
investment held by an associate (0.1) - 8.4 -
Loss on dilution of interest in an associate - - - (4.3)
(3.7) - 20.1 (4.3)
Underlying profit attributable to
shareholders 214.8 186.2 590.1 518.1
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
30.9.2017 31.12.2016
US$m US$m
Long-term borrowings:
- secured 1,437.5 1,229.2
- unsecured 368.7 638.2
1,806.2 1,867.4
Current borrowings:
- secured 1,903.7 1,972.2
- unsecured 1,876.8 1,471.0
3,780.5 3,443.2
Total borrowings 5,586.7 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$1,912.7 million (31st December 2016: US$1,884.7 million).
6 Share capital
Company
2017 2016
US$m US$m
Three months ended 30th September
Issued and fully paid:
Balance at 1st July and 30th September
- 395,236,288 (2016: 395,236,288) ordinary shares 1,381.0 1,381.0
Nine months ended 30th September
Issued and fully paid:
Balance at 1st January and 30th September
- 395,236,288 (2016: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the period between 1st July 2017 and 30th September 2017. The Company
did not hold any treasury shares and did not have any unissued shares under convertibles as at 30th September 2017 (30th
September 2016: Nil).
7 Revenue reserve
Group Company
Three months ended 30th September 2017 2016 2017 2016
US$m US$m US$m US$m
Movements:
Balance at 1st July 5,688.1 5,190.3 645.5 612.0
Asset revaluation reserve realised on disposal of assets - (0.1) - -
Defined benefit pension plans
- remeasurements - (15.3) - -
- deferred tax - 3.7 - -
Share of associates' and joint ventures' remeasurements
of defined benefit pension plans, net of tax - (3.4) - -
Profit attributable to shareholders 211.1 186.2 13.3 7.5
Dividends declared/paid by the Company (72.0) (71.6) (72.0) (71.6)
Change in shareholding (0.1) 4.0 - -
Other - 0.5 - -
Balance at 30th September 5,827.1 5,294.3 586.8 547.9
Group Company
Nine months ended 30th September 2017 2016 2017 2016
US$m US$m US$m US$m
Movements:
Balance at 1st January 5,508.7 5,065.3 654.2 628.2
Asset revaluation reserve realised on disposal of assets 0.8 0.1 - -
Defined benefit pension plans
- remeasurements 0.3 (14.7) - -
- deferred tax (0.1) 3.5 - -
Share of associates' and joint ventures' remeasurements
of defined benefit pension plans, net of tax (0.4) (4.7) - -
Profit attributable to shareholders 610.2 513.8 224.9 192.3
Dividends declared/paid by the Company (292.3) (272.6) (292.3) (272.6)
Change in shareholding (0.1) 4.1 - -
Other - (0.5) - -
Balance at 30th September 5,827.1 5,294.3 586.8 547.9
8 Other reserves
Group Company
2017 2016 2017 2016
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 399.6 394.2 - -
Translation reserve (1,517.7) (1,357.0) 314.4 303.2
Fair value reserve 15.7 15.7 - 3.5
Hedging reserve (15.5) (15.0) - -
Other reserve 3.3 3.3 - -
Balance at 30th September (1,114.6) (958.8) 314.4 306.7
Three months ended 30th September
Movements:
Asset revaluation reserve
Balance at 1st July 399.6 393.8 - -
Revaluation surplus - 0.3 - -
Reserve realised on disposal of assets - 0.1 - -
Balance at 30th September 399.6 394.2 - -
Translation reserve
Balance at 1st July (1,472.4) (1,421.7) 283.1 332.3
Translation difference (45.3) 64.7 31.3 (29.1)
Balance at 30th September (1,517.7) (1,357.0) 314.4 303.2
Fair value reserve
Balance at 1st July 17.0 15.3 4.7 3.5
Available-for-sale investments
- fair value changes 1.7 0.5 - -
- deferred tax (0.1) 0.1 - -
- transfer to profit and loss (3.8) (0.1) (4.7) -
Share of associates' and joint ventures' fair
value changes of available-for-sale investments,
net of tax 0.9 (0.1) - -
Balance at 30th September 15.7 15.7 - 3.5
Hedging reserve
Balance at 1st July (11.8) (9.1) - -
Cash flow hedges
- fair value changes (5.1) (10.7) - -
- deferred tax 0.8 1.5 - -
- transfer to profit and loss 1.8 5.1 - -
Share of associates' and joint ventures' fair
value changes of cash flow hedges, net of tax (1.2) (1.8) - -
Balance at 30th September (15.5) (15.0) - -
Other reserve
Balance at 1st July and 30th September 3.3 3.3 - -
Group Company
Nine months ended 30th September 2017 2016 2017 2016
US$m US$m US$m US$m
Movements:
Asset revaluation reserve
Balance at 1st January 400.4 347.0 - -
Revaluation surplus - 47.3 - -
Reserve realised on disposal of assets (0.8) (0.1) - -
Balance at 30th September 399.6 394.2 - -
Translation reserve
Balance at 1st January (1,546.7) (1,642.1) 175.5 223.9
Translation difference 29.0 285.1 138.9 79.3
Balance at 30th September (1,517.7) (1,357.0) 314.4 303.2
Fair value reserve
Balance at 1st January 13.0 5.2 4.7 3.5
Available-for-sale investments
- fair value changes 7.1 9.1 - -
- deferred tax (0.2) - - -
- transfer to profit and loss (6.1) - (4.7) -
Share of associates' and joint ventures' fair
value changes of available-for-sale investments,
net of tax 1.9 1.4 - -
Balance at 30th September 15.7 15.7 - 3.5
Hedging reserve
Balance at 1st January (5.1) 6.4 - -
Cash flow hedges
- fair value changes (14.9) (36.9) - -
- deferred tax 2.3 5.9 - -
- transfer to profit and loss 5.9 14.6 - -
Share of associates' and joint ventures' fair
value changes of cash flow hedges, net of tax (3.7) (5.0) - -
Balance at 30th September (15.5) (15.0) - -
Other reserve
Balance at 1st January and 30th September 3.3 3.3 - -
9 Non-controlling interests
Group
Three months ended 30th September 2017 2016
US$m US$m
Balance at 1st July 6,612.0 6,040.7
Asset revaluation surplus - 0.4
Available-for-sale investments
- fair value changes 1.4 1.2
- deferred tax (0.1) 0.1
- transfer to profit and loss 1.0 (0.1)
Share of associates' and joint ventures' fair value changes of
available-for-sale investments, net of tax 0.9 (0.3)
Cash flow hedges
- fair value changes (5.5) (12.0)
- deferred tax 0.9 1.8
- transfer to profit and loss 1.7 5.2
Share of associates' and joint ventures' fair value changes of cash
flow hedges, net of tax (1.2) (1.6)
Defined benefit pension plans
- remeasurements 0.1 (25.6)
- deferred tax - 6.0
Share of associates' and joint ventures' remeasurements
of defined benefit pension plans, net of tax - (3.7)
Translation difference (81.1) 81.3
Profit for the period 266.5 209.3
Dividends declared/paid to non-controlling interests (42.7) (29.8)
Issue of shares to non-controlling interests - 6.2
Change in shareholding - 4.3
Acquisition of subsidiaries 1.9 -
Other 2.6 2.5
Balance at 30th September 6,758.4 6,285.9
Group
Nine months ended 30th September 2017 2016
US$m US$m
Balance at 1st January 6,321.8 5,560.9
Asset revaluation surplus - 47.1
Available-for-sale investments
- fair value changes 7.1 11.4
- deferred tax (0.2) -
- transfer to profit and loss (1.5) -
Share of associates' and joint ventures' fair value changes of
available-for-sale investments, net of tax 1.8 1.3
Cash flow hedges
- fair value changes (16.3) (41.9)
- deferred tax 2.6 7.1
- transfer to profit and loss 5.8 14.6
Share of associates' and joint ventures' fair value changes of cash
flow hedges, net of tax (3.6) (4.8)
Defined benefit pension plans
- remeasurements 0.6 (24.5)
- deferred tax (0.1) 5.8
Share of associates' and joint ventures' remeasurements
of defined benefit pension plans, net of tax (0.4) (5.2)
Translation difference (26.4) 332.7
Profit for the period 755.2 556.8
Dividends declared/paid to non-controlling interests (303.4) (272.4)
Issue of shares to non-controlling interests - 89.0
Change in shareholding (0.1) 4.3
Acquisition of subsidiaries 8.5 -
Other 7.0 3.7
Balance at 30th September 6,758.4 6,285.9
10 Cash flows from operating activities
Group
Three months ended Nine months ended
30.9.2017 30.9.2016 30.9.2017 30.9.2016
US$m US$m US$m US$m
Profit before tax 594.6 489.0 1,690.6 1,323.0
Adjustments for:
Financing income (26.7) (25.3) (82.7) (66.9)
Financing charges 38.6 33.4 117.5 98.4
Share of associates' and joint ventures' results after tax (155.4) (118.9) (482.3) (336.3)
Depreciation of property, plant and equipment 126.6 121.3 372.8 365.0
Depreciation of bearer plants 6.1 5.5 17.9 15.6
Amortisation of leasehold land use rights and intangible
assets 26.2 25.7 77.2 71.4
(Profit)/loss on disposal of:
- leasehold land use rights (0.4) (0.1) (1.4) (3.0)
- property, plant and equipment (0.8) (2.1) (4.0) (9.1)
- investment properties - - 13.4 -
- investments (5.5) (7.3) (10.3) (7.3)
- subsidiaries (0.1) - (0.1) -
- associates and joint ventures 17.2 (2.4) 4.5 1.9
Loss on disposal/write-down of repossessed assets 15.6 14.3 42.7 46.6
Write-down of stocks 2.3 (5.9) 7.4 2.9
Impairment of debtors 44.1 36.6 123.4 84.2
Changes in provisions 9.1 12.6 13.9 30.1
Foreign exchange loss (2.1) (8.5) 6.6 4.1
94.8 78.9 216.5 297.6
Operating profit before working capital changes 689.4 567.9 1,907.1 1,620.6
Changes in working capital:
Stocks (1) (132.0) (63.1) (238.6) 111.1
Concession rights (20.1) (4.8) (65.5) (28.3)
Financing debtors (2) 44.8 (49.6) (102.2) (215.2)
Debtors (2) (307.8) (71.3) (733.3) (262.1)
Creditors (3) 156.6 232.1 721.2 269.4
Pensions 7.2 7.2 21.6 20.4
(251.3) 50.5 (396.8) (104.7)
Cash flows from operating activities 438.1 618.4 1,510.3 1,515.9
(1) Increase in stocks balance mainly due to purchases to support sales activities
(2) Increase in debtors balance mainly due to higher sales activities and dividends receivable from associates and
joint ventures
(3) Increase in creditors balance mainly due to purchases to support sales activities, deferred payments and accruals
for dividend payable and operating expenses
11 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$m
Three months ended 30th September 2017
Jardine Matheson Limited
- management support services - 1.0
JLT Specialty Pte Ltd
- insurance brokerage services - 0.2
PT Hero Supermarket Tbk
- transportation services - 0.1
- 1.3
Nine months ended 30th September 2017
Jardine Matheson Limited
- management support services - 3.3
Jardine Lloyd Thompson PCS Pte Ltd
- purchase of a used car - 0.1
Jardine Matheson (Singapore) Ltd
- rental of premises - 0.1
JLT Specialty Pte Ltd
- insurance brokerage services - 0.2
PT Hero Supermarket Tbk
- transportation services - 0.3
- 4.0
12 Additional information
Group
Three months ended Nine months ended
30.9.2017 30.9.2016 Change 30.9.2017 30.9.2016 Change
US$m US$m % US$m US$m %
Astra International
Automotive 83.8 75.6 11 229.5 211.6 8
Financial services 34.3 31.2 10 97.6 78.0 25
Heavy equipment and mining 50.2 29.3 71 127.5 71.2 79
Agribusiness 10.8 10.7 1 42.1 34.3 23
Infrastructure & logistics 2.0 2.8 -29 6.1 8.0 -24
Information technology 1.8 1.3 38 3.9 4.0 -3
Property 0.2 0.2 - (0.6) 0.4 nm
183.1 151.1 21 506.1 407.5 24
Less: Withholding tax on dividend 0.1 (1.0) nm (7.6) (8.7) -13
183.2 150.1 22 498.5 398.8 25
Direct Motor Interests
Vietnam 9.3 17.4 -47 41.5 60.5 -31
Singapore 14.3 11.5 24 38.4 33.1 16
Malaysia (0.5) 1.1 nm 0.8 5.4 -85
Indonesia (Tunas Ridean) 3.7 4.5 -18 10.6 13.8 -23
Myanmar (0.4) (0.1) 300 (2.3) (0.2) nm
26.4 34.4 -23 89.0 112.6 -21
Other Interests 10.9 6.7 63 19.2 22.0 -13
Corporate costs (5.7) (5.0) 14 (16.6) (15.3) 8
Underlying profit attributable to
shareholders 214.8 186.2 15 590.1 518.1 14
nm - not meaningful
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 other than as contained in this report has occurred between 1st September 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 September 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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