Jardine Matheson Hldgs Ltd PT Astra Intl Tbk 2021 First Half Financial Stmts (8820G)

TIDMJAR

RNS Number : 8820G

Jardine Matheson Hldgs Ltd

29 July 2021

To: Business Editor 29th July 2021

For immediate release

PT Astra International Tbk

2021 First Half Financial Statements

The following announcement was issued today by the Company's 75%-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 
 

29th July 2021

PT ASTRA INTERNATIONAL Tbk (the Company or Astra)

2021 FIRST HALF FINANCIAL STATEMENTS

Highlights

 
      --   Net earnings per share 61% higher (before gain on sale of investment in Permata Bank in 2020), but still 
           behind 2019 levels 
      --   Strong improvement in the automotive business, with car sales up 50 % and motorcycle sales up 2 9 % 
      --   Businesses of Astra group ("the Group") benefited from higher commodity price s 
      --   Strong balance sheet and funding position 
 

"Most of the businesses of the Group improved in the first half of 2021, compared with the same period in 2020, when the Group experienced significant COVID-19 pandemic-related business restrictions in the second quarter of 2020. Although business conditions have improved, the Group's performance for the remainder of the year remains challenging, given that business performance and consumer confidence will still be impacted by the worsening COVID-19 pandemic situation lately in Indonesia. The Group's balance sheet and funding position remain strong.

Ensuring the health and safety of our employees amid the deepening COVID-19 pandemic continues to be the Group's top priority. The Group's greatest strength is our employees. The efforts that all our employees have taken in responding to the challenges faced have contributed to the Group's resilience during these difficult times."

Djony Bunarto Tjondro

President Director

Astra Group Results

 
                                        For the period ended 30th June 
                                           2021                 20 20   Change 
                                          Rp bn                 Rp bn        % 
                               ----------------  --------------------  ------- 
 Net revenue                            107,395                89,795       20 
                               ----------------  --------------------  ------- 
 Net income (before 
  gain on sale of investment 
  in Permata Bank in 
  the first half 2020)                    8,831                 5,497       61 
                               ----------------  --------------------  ------- 
 Net income                               8,831                11,378   (2 2 ) 
                               ----------------  --------------------  ------- 
                                             Rp                    Rp 
                               ----------------  --------------------  ------- 
 Net earnings per share 
  (before gain on sale 
  of investment in Permata 
  Bank)                                     218                   137       61 
                               ----------------  --------------------  ------- 
 Net earnings per share                     218                   281   (2 2 ) 
                               ----------------  --------------------  ------- 
                                As at 30th June   As at 31st December   Change 
                                           2021                  2020        % 
                                          Rp bn                 Rp bn 
                               ----------------  --------------------  ------- 
 Shareholders' funds                    162,437               155,662        4 
                               ----------------  --------------------  ------- 
                                             Rp                    Rp 
                               ----------------  --------------------  ------- 
 Net asset value per 
  share                                   4,012                 3,845        4 
                               ----------------  --------------------  ------- 
 

The financial results for the six months ended 30th June 2021 and 2020, as well as the financial position as at 30th June 2021, have been prepared in accordance with Indonesian Financial Accounting Standards and are un audited . The financial position as at 31st December 2020 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 2021 was Rp 10 7.4 trillion, a 20% in crease from the comparable period last year. Net income, however, was Rp 8. 8 trillion, 2 2 % lower than the first half of 2020, when the Group benefited from the gain on the sale of its investment in Permata Bank. Excluding this one-off gain, the G roup's net income showed a 61 % improvement , primarily due to a better performance from its automotive division .

The net asset value per share at 30th June 2021 was Rp4,012, 4% higher than at 31st December 2020.

Net cash, excluding the Group's financial services subsidiaries, was Rp20.5 trillion at 30 th June 2021, compared with Rp7.3 trillion at the end of 2020, due to an improved trading performance, alongside realisation of low capital expenditure and working capital requirements. If trading volumes continue to recover in the remainder of the year, both capital expenditure and working capital could increase. The net debt of the Group's financial services subsidiaries increased from Rp39.2 trillion at the end of 2020 to Rp 41.2 trillion at 30 th June 2021.

Business Activities

The Group's net income was lower in the first half of 2021 compared to that of the first half of 2020. Net income attributable to shareholders of Astra by division was as follows:

 
                                            Net Income Attributable to Astra 
                                                      International 
                                             For the period ended 30th June 
                                         ------------------------------------- 
                                                2021          20 20     Change 
                                               Rp bn          Rp bn          % 
                                         -----------  -------------  --------- 
 Automotive                                    3,311            716        362 
                                         -----------  -------------  --------- 
 Financial Services                            2,134         2, 102          2 
                                         -----------  -------------  --------- 
 Heavy Equipment, Mining, Construction 
  and Energy                                   2,681         2, 368         13 
                                         -----------  -------------  --------- 
 Agribusiness                                    517           31 2         66 
                                         -----------  -------------  --------- 
 Infrastructure and Logistics                     91         ( 88 )        N/A 
                                         -----------  -------------  --------- 
 Information Technology                           14             16       (13) 
                                         -----------  -------------  --------- 
 Property                                         83             71         17 
                                         -----------  -------------  --------- 
 Attributable net income (before 
  gain on sale of investment in 
  Permata Bank)                                8,831          5,497         61 
                                         -----------  -------------  --------- 
 Gain on sale of investment in                     -          5,881        N/A 
  Permata Bank 
                                         -----------  -------------  --------- 
 Attributable Net Income                       8,831      1 1 , 378     (2 2 ) 
                                         -----------  -------------  --------- 
 

Automotive

Net income from the Group's automotive division increased by 3 62% to Rp 3. 3 trillion , mainly due to the negative impact on performance in the second quarter of last year of the pandemic and related containment measures, as well as an increase in sales volumes in the first half of this year, especially in the car segment, which benefited from temporary luxury sales tax incentives . Key points were as follows:

 
      --   The wholesale market for cars increased by 51% to 393,000 units in the first half of 2021 (source: 
           Gaikindo). Astra's car sales were 50% higher at 210,000 units and its market 
           share was maintained at 53%. Eight new models and six revamped models were launched during the period. 
      --   The wholesale market for motorcycles increased by 30% to 2.5 million units in the first half of 2021 
           (source: Ministry of Industry of the Republic of Indonesia). Astra Honda 
           Motor's sales in creased by 29% to 1.9 million units, with a stable market share. Four new models and seven 
           revamped models were launched during the period. 
      --   The Group's 80%-owned components business, Astra Otoparts, reported a net profit of Rp26 7 billion , 
           compared to a net loss of Rp296 billion in the equivalent period last year, 
           mainly due to higher revenues from the original equipment manufacturer and replacement market segments. 
 

Financial Services

Net income from the Group's financial services division increased by 2 % to Rp 2.1 trillion in the first half of this year, due to higher contribution s from the consumer finance and general insurance businesses. Key points were as follows:

 
      --   The Group's consumer finance businesses saw a 13% in crease in amounts financed to Rp40.0 trillion. The net 
           income contribution from the Group's car-focused finance companies 
           increased by 3% to Rp 564 billion, while the net income contribution from its motorcycle-focused business, 
           Federal International Finance, also in creased by 3% to Rp 949 billion. 
           Both increases were mainly due to lower loan loss provisioning. 
      --              The Group's heavy equipment-focused finance operations saw a 46% increase in amounts financed to 
                      Rp2.7 trillion. The net income contribution from this bussines decreased by 
                      20% to Rp28 billion, mainly due to a reduced loan portfolio. 
      --              General insurance company Asuransi Astra Buana reported a 1 5 % in crease in net income to Rp 5 
                      97 billion, mainly due to higher investment income . The Group's life insurance 
                      company, Astra Life, recorded a 78% increase in gross written premiums to Rp2.8 trillion. 
 

Heavy Equipment, Mining, Construction and Energy

Net income from the Group's heavy equipment, mining, construction and energy division increased by 13 % to Rp 2. 7 trillion, due to higher Komatsu heavy equipment sales and improved coal prices . Key points were as follows:

 
      --              59.5%-owned United Tractors reported a n 11 % increase in net income to Rp 4. 5 trillion. 
      --   Komatsu heavy equipment sales increased by 60% to 1,361 units, while parts and service revenues were also 
           higher. 
      --   Mining contractor Pamapersada Nusantara recorded a 3% lower overburden removal volume at 40 9 million bank 
           cubic metres , while there was a 3% higher coal production at 58 million 
           tonnes. 
      --   United Tractors' coal mining subsidiaries achieved 12% higher coal sales at 6.3 million tonnes, including 
           1.4 million tonnes of metallurgical coal. 
      --   Agincourt Resources, 95%-owned by United Tractors, reported 5% lower gold sales at 176,000 oz . 
      --   General contractor Acset Indonusa, 64.8%-owned by United Tractors, reported a net loss of Rp 1 53 billion , 
           mainly due to the slowdown of several ongoing projects and reduced 
           construction project opportunities during the pandemic . 
 

Agribusiness

Net income from the Group's agribusiness division increased by 66 % to Rp 517 billion, mainly due to improved crude palm oil price s. Key points were as follows:

 
      --              The net income of 79.7%-owned Astra Agro Lestari increased by 66 % to Rp 649 billion. 
      --   Crude palm oil prices rose by 2 7 % to Rp 10, 274 /kg. 
      --   Crude palm oil and derivative product sales fell by 9 % to 933 ,000 tonnes. 
 

Infras tru cture and Logistics

The Group's infrastru c ture and logistics division reported a net income of Rp 91 billion, compared with a net loss of Rp88 billion in the first half of 2020, due to improved performance in its toll road and Serasi Autoraya businesses . Key points were as follows:

 
      --              Astra has interests in almost 358km of operational toll roads along the Trans-Java network and 
                      in the Jakarta Outer Ring Road. 
      --              The Group's toll road concessions saw 41% higher toll revenue. 
      --              In June, the Group acquired an additional 14% stake in Marga Lingkar Jakarta, raising its 
                      ownership to 49%. Marga Lingkar Jakarta is the operator of the 7.7km Kebon Jeruk-Ulujami 
                      toll road, part of the Jakarta Outer Ring Road I. 
      --              Serasi Autoraya's net income increased by 138% to Rp81 billion, mainly due to increased used car 
                      sales, improved operating margin and a slight increase in number of vehicles 
                      under contract to 23,000 units. 
 

Information Technology

Net income from the Group's information technology division was 13 % lower at Rp 1 4 billion, primarily due to lower revenue in the office service business of 76.9%-owned Astra Graphia.

Property

Net income from the Group's property division increased by 17 % to Rp 83 billion, mainly due to higher occupancy and lower operational costs at Menara Astra .

Prospects

Most of the businesses of the Group improved in the first half of 2021, compared with the same period in 2020, when the Group experienced significant COVID-19 pandemic-related business restrictions in the second quarter of 2020. Although business conditions have improved, the Group's performance for the remainder of the year remains challenging, given that business performance and consumer confidence will still be impacted by the worsening COVID-19 pandemic situation lately in Indonesia. The Group's balance sheet and funding position remain strong.

Djony Bunarto Tjondro

President Director

   29th   July 2021 

For further information, please contact:

PT Astra International Tbk

Riza Deliansyah, Chief of Corporate Affairs

Tel: +62 - 21 - 5084 3888

-end-

About Astra

PT Astra International Tbk was established in 1957 in Jakarta as a general trading company under the name Astra International Inc. In 1990, for the purpose of the company's initial public offering (IPO), the name of the company changed to PT Astra International Tbk, followed by listing its shares on the Indonesia Stock Exchange under the ticker code ASII.

Astra has developed its business by implementing a business model based on synergies and diversification within seven business divisions: 1) Automotive, 2) Financial Services, 3) Heavy Equipment, Mining, Construction & Energy, 4) Agribusiness, 5) Infrastructure and Logistics, 6) Information Technology and 7) Property.

Astra Group conducts business operations in all parts of Indonesia under the management of more than 238 companies, including subsidiaries, joint ventures and associates, and was supported by more than 187,300 employees, as of June 2021.

As one of the largest national business groups in Indonesia today, Astra has built a strong reputation through offering a range of quality products and services, taking into account the implementation of good corporate and environmental governance. Astra always aspires to be the pride of the nation that participates in efforts to improve the welfare of the Indonesian people.

Astra's business activities strive to apply a balanced mix in the commercial aspects of business and non-business contributions through 9 foundations and a variety of sustainable social responsibility programmes, namely Astra Untuk Indonesia Sehat , Astra Untuk Indonesia Cerdas, Astra Untuk Indonesia Hijau and Astra Untuk Indonesia Kreatif.

Astra initiated the Semangat Astra Terpadu Untuk (SATU) Indonesia Awards programme, which has entered its eleventh year, and has given recognition awards to 397 young Indonesians, consisting of 70 national level recipients and 327 provincial level recipients in the fields of Health, Education, the Environment, Entrepreneurship and Technology. Some of the recipients of this program has been collaborated with 133 Astra Berseri Villages and 930 Astra Prosperous Villages in 34 provinces throughout Indonesia.

For further information, please visit www.astra.co.id & www.satu-indonesia.com , and follow Astra through Instagram (@satu_Indonesia), Youtube (SATU Indonesia), Facebook (Semangat Astra Terpadu) and Twitter (@satu_Indonesia).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCEALXNASXFEEA

(END) Dow Jones Newswires

July 29, 2021 05:36 ET (09:36 GMT)