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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Jardine Strategic Holdings Ld | LSE:88EI | London | Ordinary Share | BMG507641022 | ORD US$0.05(JERSEY REG) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMJDS TIDMJAR
RNS Number : 6009U
Jardine Strategic Hldgs Ltd
30 July 2020
To: Business Editor
Hot Features
Premium
30th July 2020
For immediate release
Jardine Cycle & Carriage Limited
2020 Half Year Financial Statements and Dividend Announcement
The following announcement was issued today by the Company's 75%-owned subsidiary, Jardine Cycle & Carriage Limited.
For further information, please contact:
Jardine Matheson Limited
Joey Ho (65) 9765 0717
Brunswick Group Limited
Ben Fry (65) 9017 9886
30th July 2020
JARDINE CYCLE & CARRIAGE LIMITED
2020 HALF YEAR FINANCIAL STATEMENTS AND DIVID ANNOUNCEMENT
Highlights
-- Underlying profit 66% lower at US$138 million
-- Significantly weaker performances from Astra's automotive, financial services and heavy equipment and mining operations
-- Direct Motor Interests down due to the temporary closure of automotive operations
-- Other Strategic Interests impacted by Thaco's weaker performance and the timing of Vinamilk's interim dividend
-- Interim dividend at USc9 per share, 50% lower than 2019
"Jardine Cycle & Carriage's performance in the first half was significantly impacted by the COVID-19 pandemic and its economic consequences. The pandemic is expected to continue to adversely affect performance for at least the rest of 2020. The Group has been focused on reducing operational and capital expenditure, managing working capital and ensuring liquidity. The Board remains confident that the Group's strong financial position and clear strategic priorities will position it well to deliver long-term growth.
During this challenging period of disruption and uncertainty, I would like to take this opportunity to thank all colleagues for their continued hard work, professionalism and resilience."
Ben Keswick, Chairman
Group Results
-------------------------------- ------------------------------ ------- -----------
Six months ended 30th June
-------------------------------- ---------------------------------------- -----------
2020 2019 Change 2020
US$m US$m % S$m
---------------------------------- ------------- -------------- ------- -----------
Revenue 6,595 9,157 -28 9,239
Underlying profit attributable
to
shareholders (#) 138 407 -66 193
Non-trading items^ 163 20 nm 229
Profit attributable to
shareholders 301 427 -30 422
---------------------------------- ------------- -------------- ------- -----------
USc USc Sc
---------------------------------- ------------- -------------- ------- -----------
Underlying earnings per
share (#) 35 103 -66 49
Earnings per share 76 108 -30 107
Interim dividend per share
* 9 18 -50 13
At At At
30.6.2020 31.12.2019 30.6.2020
------------- -------------- -------
US$m US$m S$m
---------------------------------- ------------- -------------- ------- -----------
Shareholders' funds 6,717 6,860 -2 9,359
---------------------------------- ------------- -------------- ------- -----------
US$ US$ S$
---------------------------------- ------------- -------------- ------- -----------
Net asset value per share 17.00 17.36 -2 23.68
---------------------------------- ------------- -------------- ------- -----------
The exchange rate of US$1=S$1.39 (31st December 2019: US$1=S$1.35) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.40 (30th June 2019: US$1=S$1.36) was used for translating the results for the period. The financial results for the six months ended 30th June 2020 and 30th June 2019 have been prepared in accordance with International Financial Reporting Standards and have not been audited or reviewed by the auditors.
# The Group uses 'underlying profit attributable to shareholders' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in Note 4 to the condensed financial statements. Management considers this to be a key performance measurement which enhances the understanding of the Group's underlying business performances.
^ Included in 'non-trading items' are unrealised gain/losses arising from the revaluation of the Group's equity investments and gain from disposal of investment in associates and joint venture companies.
* The Singapore currency equivalent is an estimate as the actual amount will be determined on the Record Date referred to in Note 11.
nm not meaningful
CHAIRMAN'S STATEMENT
Overview
The performance of Jardine Cycle & Carriage ("JC&C" or "the Group") in the first half reflected the challenging conditions caused by the pandemic.
Astra saw significantly weaker performances from its automotive, financial services and heavy equipment and mining operations. The pandemic containment measures implemented across most of Indonesia have caused severe disruption to Astra's operations, including the temporary closure of its automotive manufacturing and distribution operations, and there was also a significant rise in the number of restructured loans in its financial services businesses. In addition, depressed coal prices led to a deterioration in Astra's heavy equipment, mining contracting and mining businesses.
The contribution from the Group's Direct Motor Interests and Thaco was substantially lower as automotive operations were suspended during the second quarter due to lockdown restrictions. The Group also saw a lower contribution from its investment in Vinamilk due to the timing of the declaration of its interim dividend, which will be recognised by JC&C in the second half of this year, whereas last year it was declared and recognised in the first half.
The Group's underlying profit attributable to shareholders was 66% lower than the same period last year at US$138 million. Excluding the impact of foreign exchange from the translation of foreign currency loans in JC&C parent company, underlying profit would be 55% lower than last year.
Profit attributable to shareholders decreased to US$301 million from US$427 million in the same period last year. This figure reflects a US$188 million gain on the disposal of Astra's investment in Permata Bank, which was partly offset by unrealised fair value losses related to non-current investments.
The Group's consolidated net debt, excluding Astra's financial services subsidiaries, was US$1.3 billion at the end of June 2020, compared to US$3.0 billion at the end of 2019, mainly due to the receipt of proceeds from the disposal of Astra's investment in Permata Bank. Net debt within Astra's financial services subsidiaries increased slightly to US$3.2 billion. JC&C parent company's net debt was US$1.5 billion, similar to the previous year end.
Group Review
The contribution to JC&C's underlying profit attributable to shareholders by business segment was as follows:
Contribution to JC&C's underlying
profit
Six months ended 30th June
-------------------------------- ---- ------------------------------------ ---------
2020 2019 Change
Business segments US$m US$m %
-------------------------------- ---- ---------------- ------------------ -------
Astra 171 326 -47
Direct Motor Interests - 33 -100
Other Strategic Interests 28 66 -58
Corporate Costs - exchange
differences (41) 11 nm
Corporate Costs - others (20) (29) -31
Underlying profit attributable
to
shareholders 138 407 -66
---------------- ------------------ -------
Astra
Astra contributed US$171 million to JC&C's underlying profit. Excluding the gain on the disposal of its investment in Permata Bank, Astra reported a profit equivalent to US$372 million under Indonesian accounting standards, 44% lower in its local currency terms than the same period last year. This was mainly due to significantly lower contributions from its automotive, financial services and heavy equipment and mining businesses, partially offset by its agribusiness.
Automotive
Net income fell by 79% to US$48 million, mainly due to a substantial fall in sales volumes, especially in the second quarter. Key points were as follows:
-- The wholesale car market declined by 46% in the first half to 261,000 units. Astra's car sales were 45% lower at 139,500 units, with its market share maintained at around 53%. Six new models and ten revamped models were launched.
-- The wholesale market for motorcycles declined by 42% in the first half to 1.9 million units. Astra's Honda motorcycle sales fell by 40% to 1.5 million units with an increase in market share from 75% to 77%. Three new models and six revamped models were launched.
-- Components business, Astra Otoparts, reported a net loss of US$20 million compared to a profit of US$17 million in the same period last year, mainly due to lower revenues from the OEM (original equipment manufacturer) and replacement market segments.
Financial Services
Net income fell by 25% to US$142 million, primarily due to increased loan loss provision s to cover higher non-performing loan losses in the consumer and heavy equipment-focused finance businesses . Key points were as follows:
-- Consumer finance businesses saw a 16% decrease in the amounts financed to US$2.4 billion. The net income contribution from the car-focused finance companies decreased by 24% to US$37 million while the contribution from the motorcycle-focused financing business fell by 25% to US$62 million, in both cases due to higher loan loss provisioning, as non-performing loans increased.
-- Heavy equipment-focused finance operations saw a 14% decrease in the amounts financed to US$125 million. The net income contribution from this segment fell by 30% to US$2 million.
-- General insurance company, Asuransi Astra Buana, reported a 4% decrease in net income to US$35 million, caused by lower underwriting income.
-- In May 2020, Astra completed the sale of its 44.56% stake in Permata Bank for a net consideration of US$1.1 billion.
Heavy Equipment, Mining, Construction and Energy
Net income decreased by 29% to US$160 million, mainly due to lower heavy equipment sales and mining contracting volume caused by weaker coal prices. Key points were as follows:
-- United Tractors reported a 28% decrease in net income to US$275 million.
-- Komatsu heavy equipment sales fell by 56% to 853 units, and parts and service revenues were also lower.
-- Mining contracting operations reported 10% lower overburden removal volume at 420 million bank cubic metres and 8% lower coal production at 56 million tonnes.
-- Coal mining subsidiaries achieved 14% higher coal sales at 5.6 million tonnes, including 869,000 tonnes of coking coal sales, but were affected by lower coal prices.
-- Agincourt Resources saw 4% lower gold sales at 186,000 oz.
-- General contractor, Acset Indonusa, reported a 38% lower net loss of US$17 million, mainly due to reduced funding costs following the collection of amounts due in respect of the Jakarta-Cikampek elevated toll road project.
Infrastructure and Logistics
Astra's infrastructure and logistics division reported a net loss of US$6 million for the first half, compared to a net profit of US$6 million for the same period in 2019, mainly due to lower toll road revenues. Key points were as follows:
-- Traffic volumes were 18% lower. Astra has 350km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road.
-- Serasi Autoraya's net income decreased by 62% to US$2 million mainly due to lower operating margins, despite a 3% increase in vehicles under contract at 22,900 units and 3% higher used car sales at 15,300 units.
Agribusiness
Net income increased significantly to US$21 million, due to higher crude palm oil prices, especially in the first quarter.
Direct Motor Interests
The Group's Direct Motor Interests contributed a loss of US$0.3 million, compared to a profit of US$33 million in the same period last year. Key points were as follows:
-- The contribution from Cycle & Carriage Singapore was 95% lower at US$1 million, as passenger car sales decreased by 61% to 3,200 units.
-- Tunas Ridean contributed US$3 million, 70% lower due to weaker performances across its automotive, consumer finance and rental operations.
-- Cycle & Carriage Bintang contributed a loss of US$3 million, compared to a loss of US$0.7 million last year. Unit sales fell by 46% and margins were also impacted.
Other Strategic Interests
The Group's Other Strategic Interests contributed a profit of US$28 million, 58% lower than the previous year. Key points were as follows:
-- Thaco contributed a profit of US$1 million, which included a true up adjustment of US$7 million in respect of its 2019 results. Excluding the adjustment, the profit contribution would have been US$8 million, 64% lower than the equivalent period last year. Unit sales fell by 30% and margins declined as a result of difficult market conditions, primarily due to the pandemic.
-- The contribution from Siam City Cement was US$12 million, 5% lower than the same period last year. This was mainly due to weaker domestic operations which were partially offset by an improved regional performance, primarily from Vietnam.
-- Refrigeration Electrical Engineering Corporation's contribution of US$3 million, based on its first quarter results, was 16% lower than the same period last year. Weaker performances from its power and water investments and its M&E business were partially offset by stronger real estate contributions.
-- Vinamilk produced a dividend income of US$12 million, compared to US$28 million in the same period last year, which included the 2019 interim dividend. The 2020 interim dividend will be recognised later in the year. Vinamilk reported a net profit of US$251 million in the first half, 3% up in local currency terms, as domestic dairy and exports continued to grow.
Corporate Costs
Corporate costs were US$61 million in the first half, compared to US$18 million in the same period last year. This was primarily due to a foreign exchange loss from the translation of foreign currency loans in the first half of 2020, compared to a gain in the previous year. This was partly offset by lower net financing charges and overheads in the first half of 2020.
Dividend
The Board has declared an interim one-tier tax exempt dividend of USc9 per share (2019: USc18 per share) for the half year ended 30th June 2020, reflecting the decline in performance during the period.
Outlook
The pandemic is expected to continue to adversely impact performance for at least the rest of 2020. The Board remains confident, however, that the Group's strong financial position and clear strategic priorities will position it well to deliver long-term growth.
Ben Keswick
Chairman
CORPORATE PROFILE
Jardine Cycle & Carriage is the investment holding company of the Jardine Matheson Group in Southeast Asia. JC&C seeks to grow with Southeast Asia by investing in market leading businesses based on the themes of urbanisation and the emerging consumer class. The Group works closely with its businesses to enable them to achieve their potential and to elevate their communities.
The Group has a 50.1% interest in Astra, a diversified group in Indonesia, which is also the largest independent automotive group in Southeast Asia.
JC&C also has significant interests in Vietnam, including 26.6% in Truong Hai Auto Corporation, 29% in Refrigeration Electrical Engineering Corporation and 10.6% in Vinamilk. Its 25.5%-owned Siam City Cement also has a presence in South Vietnam, in addition to operating in Thailand, Sri Lanka, Cambodia and Bangladesh.
The other investments in JC&C's portfolio are the Cycle & Carriage businesses in Singapore, Malaysia and Myanmar, and 46.2%-owned Tunas Ridean in Indonesia. These motor businesses are managed by Jardine International Motors.
JC&C is a leading Singapore-listed company, 75%-owned by the Jardine Matheson Group. Together with its subsidiaries and associates, JC&C employs more than 250,000 people across Southeast Asia.
Statement pursuant to Rule 705(5) of the Listing Rules of the Singapore Exchange Securities Trading Limited ("SGX-ST")
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 2020 to be false or misleading in any material aspect.
On behalf of the Board of Directors
Ben Keswick
Director
Vimala Menon
Director
30th July 2020
Jardine Cycle & Carriage Limited
Consolidated Profit and Loss Account for the six months ended
30th June 2020
---------------------------------------------------------------
2020 2019 Change
Note US$m US$m %
Revenue (1) 6,594.6 9,157.1 -28
Net operating costs 2 (5,650.8) (8,077.3) -30
Operating profit 2 943.8 1,079.8 -13
Financing income 48.6 44.4 9
Financing charges (2) (143.2) (178.0) -20
---------- ----------
Net financing charges (94.6) (133.6) -29
Share of associates'
and joint
ventures' results after
tax 91.3 248.4 -63
Profit before tax 940.5 1,194.6 -21
Tax 3 (127.1) (256.0) -50
Profit after tax 813.4 938.6 -13
========== ==========
Profit attributable to:
Shareholders of the Company 300.9 427.5 -30
Non-controlling interests 512.5 511.1 -
813.4 938.6 -13
========== ==========
USc USc
----------------------------- ----- ---------- ---------- -------
Earnings per share 4 76 108 -30
----------------------------- ----- ---------- ---------- -------
(1) Lower revenue was mainly due to lower sales in Astra's automotive, heavy equipment and mining operations
(2) Decrease in finance charges mainly due to lower level of net debt
Jardine Cycle & Carriage Limited
Consolidated Statement of Comprehensive Income for the six
months ended 30th June 2020
------------------------------------------------------------
2020 2019
US$m US$m
Profit for the year 813.4 938.6
Items that will not be reclassified
to profit or loss:
-------- --------
Remeasurements of defined benefit
pension plans (0.7) 0.3
Tax on items that will not be reclassified (0.8) -
Share of other comprehensive income/(expense)
of
associates and joint ventures, net
of tax (1.8) (0.1)
--------
(3.3) 0.2
Items that may be reclassified subsequently
to profit or loss:
Translation difference
- gain/(loss) arising during the
year (325.3) 284.7
- transfer to profit and loss (0.3) -
Financial assets at FVOCI (1)
- gain/(loss) arising during the
year (2.9) 14.4
- transfer to profit and loss 2.6 (0.4)
Cash flow hedges
- gain/(loss) arising during the
year (11.6) (76.0)
- transfer to profit and loss 2.8 1.6
Tax relating to items that may be
reclassified (0.8) 19.3
Share of other comprehensive income/(expense)
of
associates and joint ventures, net
of tax (78.6) (36.1)
(414.1) 207.5
Other comprehensive income/(expense)
for the year (417.4) 207.7
Total comprehensive income for the
year 396.0 1,146.3
======== ========
Attributable to:
Shareholders of the Company 121.9 541.2
Non-controlling interests 274.1 605.1
396.0 1,146.3
======== ========
(1) Fair value through other comprehensive income ("FVOCI")
Jardine Cycle & Carriage Limited
Consolidated Balance Sheet at 30th June 2020
----------------------------------------------
At At
Note 30.06.2020 31.12.2019
US$m US$m
Non-current assets
Intangible assets 1,760.1 1,802.0
Right-of-use assets 842.0 872.5
Property, plant and equipment 4,405.9 4,718.2
Investment properties 532.9 543.2
Bearer plants 483.3 502.9
Interests in associates and
joint ventures 3,951.1 5,067.3
Non-current investments 2,027.8 2,105.9
Non-current debtors 3,100.9 2,826.7
Deferred tax assets 349.8 359.2
----------- -----------
17,453.8 18,797.9
----------- -----------
Current assets
Current investments 40.2 28.8
Properties for sale 382.2 398.7
Stocks 1,627.9 1,907.1
Current debtors 4,845.0 5,891.2
Current tax assets 107.5 204.9
Bank balances and other liquid
funds
----------- -----------
- non-financial services companies 2,800.2 1,588.0
- financial services companies 240.4 255.8
----------- -----------
3,040.6 1,843.8
----------- -----------
10,043.4 10,274.5
----------- -----------
Total assets 27,497.2 29,072.4
----------- -----------
Non-current liabilities
Non-current creditors 288.4 324.4
Provisions 165.0 163.4
Non-current lease liabilities 87.9 93.7
Long-term borrowings 5
----------- -----------
- non-financial services companies 1,823.7 1,923.7
- financial services companies 1,425.7 1,696.9
----------- -----------
3,249.4 3,620.6
Deferred tax liabilities 366.1 416.5
Pension liabilities 338.7 330.9
----------- -----------
4,495.5 4,949.5
----------- -----------
Current liabilities
Current creditors 3,462.1 4,307.8
Provisions 105.3 108.6
Current lease liabilities 65.2 56.9
Current borrowings 5
----------- -----------
- non-financial services companies 2,237.0 2,712.5
- financial services companies 2,048.7 1,852.6
----------- -----------
4,285.7 4,565.1
Current tax liabilities 78.1 100.0
----------- -----------
7,996.4 9,138.4
----------- -----------
Total liabilities 12,491.9 14,087.9
----------- -----------
Net assets 15,005.3 14,984.5
=========== ===========
Equity
Share capital 6 1,381.0 1,381.0
Revenue reserve 7 6,755.5 6,720.0
Other reserves 8 (1,419.6) (1,240.9)
----------- -----------
Shareholders' funds 6,716.9 6,860.1
Non-controlling interests 9 8,288.4 8,124.4
----------- -----------
Total equity 15,005.3 14,984.5
=========== ===========
Jardine Cycle & Carriage Limited
Consolidated Statement of Changes in Equity for the six months ended 30th June 2020
Attributable to shareholders of the Company
Attributable
Asset Fair to non-
value
Share Revenue revaluation Translation and controlling Total
other
capital reserve reserve reserve reserves Total interests equity
US$m US$m US$m US$m US$m US$m US$m US$m
2020
Balance at 1st
January 1,381.0 6,720.0 403.4 (1,611.0) (33.3) 6,860.1 8,124.4 14,984.5
Total
comprehensive
income - 299.3 - (152.1) (25.3) 121.9 274.1 396.0
Dividends
declared by the
Company - (265.1) - - - (265.1) - (265.1)
Dividends
declared/paid
to
non-controlling
interests - - - - - - (110.9) (110.9)
Issue of shares
to
non-controlling
interests - - - - - - 0.8 0.8
Other - 1.3 - - (1.3) - - -
Balance at 30th
June 1,381.0 6,755.5 403.4 (1,763.1) (59.9) 6,716.9 8,288.4 15,005.3
======== ======== ============ ============ ========= ======== ============= =========
2019
Balance at 1st
January 1,381.0 6,202.4 403.3 (1,852.5) 9.6 6,143.8 7,342.1 13,485.9
Total
comprehensive
income - 427.8 - 138.6 (25.2) 541.2 605.1 1,146.3
Dividends paid by
the Company - (276.5) - - - (276.5) - (276.5)
Dividends paid to
non-controlling
interests - - - - - - (356.9) (356.9)
Issue of shares
to
non-controlling
interests - - - - - - 15.0 15.0
Change in
shareholding - (0.5) - - - (0.5) (2.5) (3.0)
Acquisition of
subsidiaries - - - - - - (0.2) (0.2)
Balance at 30th
June 1,381.0 6,353.2 403.3 (1,713.9) (15.6) 6,408.0 7,602.6 14,010.6
======== ======== ============ ============ ========= ======== ============= =========
Jardine Cycle & Carriage Limited
Company Balance Sheet at 30th June 2020
-----------------------------------------
At At
Note 30.06.2020 31.12.2019
US$m US$m
Non-current assets
Property, plant and equipment 33.0 34.6
Interests in subsidiaries 1,339.4 1,380.8
Interests in associates
and joint ventures 1,130.8 1,169.5
Non-current investment 181.4 205.1
-----------
2,684.6 2,790.0
----------- -----------
Current assets
Current debtors 1,126.4 1,181.8
Bank balances and other
liquid funds 39.7 42.7
----------- -----------
1,166.1 1,224.5
----------- -----------
Total assets 3,850.7 4,014.5
----------- -----------
Non-current liabilities
Deferred tax liabilities 6.0 6.2
-----------
6.0 6.2
----------- -----------
Current liabilities
Current creditors 327.2 74.7
Current borrowings 1,521.0 1,529.4
Current tax liabilities 1.6 1.6
-----------
1,849.8 1,605.7
----------- -----------
Total liabilities 1,855.8 1,611.9
----------- -----------
Net assets 1,994.9 2,402.6
=========== ===========
Equity
Share capital 6 1,381.0 1,381.0
Revenue reserve 7 357.1 683.6
Other reserves 8 256.8 338.0
----------- -----------
Total equity 1,994.9 2,402.6
=========== ===========
Net asset value per share US$5.05 US$6.08
Jardine Cycle & Carriage Limited
Company Statement of Comprehensive Income for the six months
ended 30th June 2020
--------------------------------------------------------------
2020 2019
US$m US$m
(Loss)/profit for the year (61.4) 244.8
Item s that may be reclassified subsequently
to profit or loss:
-------- --------
Translation difference
- (loss)/gain arising during the year (81.2) 21.2
Other comprehensive (expense)/income
for the year (81.2) 21.2
Total comprehensive (expense)/income
for the year (142.6) 266.0
======== ========
Jardine Cycle & Carriage Limited
Company Statement of Changes in Equity for the six months ended
30th June 2020
-----------------------------------------------------------------
Share Revenue Translation Total
capital reserve reserve equity
US$m US$m US$m US$m
2020
Balance at 1st January 1,381.0 683.6 338.0 2.402.6
Total comprehensive
income - (61.4) (81.2) (142.6)
Dividends paid - (265.1) - (265.1)
Balance at 30th June 1,381.0 357.1 256.8 1,994.9
========== ========== ============== =========
2019
Balance at 1st January 1,381.0 672.6 305.3 2,358.9
Total comprehensive
income - 244.8 21.2 266.0
Dividends paid - (276.5) - (276.5)
Balance at 30th June 1,381.0 640.9 326.5 2,348.4
========== ========== ============== =========
Jardine Cycle & Carriage Limited
Consolidated Statement of Cash Flows for the six months ended
30th June 2020
---------------------------------------------------------------
2020 2019
Note US$m US$m
Cash flows from operating activities
Cash generated from operations 10 1,170.8 975.9
Interest paid (101.2) (120.3)
Interest received 44.5 41.7
Other finance costs paid (42.3) (55.9)
Income tax paid (228.0) (428.5)
---------
(327.0) (563.0)
Dividends received from associates
and joint ventures (net) 49.5 272.7
------------------ ---------
(277.5) (290.3)
------------------ ---------
Net cash flows from operating activities 893.3 685.6
Cash flows from investing activities
------------------ ---------
Sale of right-of-use assets - 0.5
Sale of intangible assets 0.6 -
Sale of property, plant and equipment 23.0 6.9
Sale of subsidiaries, net of cash
disposed 0.5 0.4
Sale of associate and joint venture 1,138.3 3.2
Sale of investments 187.6 165.8
Purchase of intangible assets (49.4) (96.0)
Purchase of right-of-use assets (7.7) (32.1)
Purchase of property, plant and equipment (164.7) (464.6)
Purchase of investment properties (5.6) (9.6)
Additions to bearer plants (16.0) (20.7)
Purchase of subsidiaries, net of
cash acquired (0.1) -
Purchase of associates and joint
ventures (23.9) (320.6)
Purchase of investments (213.2) (278.6)
Net cash flows used in investing
activities 869.4 (1,045.4)
Cash flows from financing activities
------------------ ---------
Drawdown of loans 1,188.3 2,398.9
Repayment of loans (1,694.3) (1,683.6)
Principal elements of lease payments (47.3) (38.9)
Changes in controlling interests
in subsidiaries - (3.0)
Investments by non-controlling interests 0.8 15.0
Dividends paid to non-controlling
interests (22.0) (356.9)
Dividends paid by the Company - (276.5)
---------
Net cash flows used in financing
activities (574.5) 55.0
Net change in cash and cash equivalents 1,188.2 (304.8)
Cash and cash equivalents at the
beginning of the year 1,843.4 1,881.5
Effect of exchange rate changes 9.0 37.9
Cash and cash equivalents at the
end of the year(1) 3,040.6 1,614.6
================== =========
(1) For the purpose of the Consolidated Statement of Cash Flows, cash and cash equivalents comprise deposits with bank and financial institutions, bank and cash balances, net of bank overdrafts. In the balance sheet, bank overdrafts are included under current borrowings.
Jardine Cycle & Carriage Limited Notes to the financial statements for the six months ended 30th June 2020 ----------------------------------------------------------------- 1 Basis of preparation
The financial statements are consistent with those set out in the 2019 audited accounts which have been prepared in accordance with Singapore Financial Reporting Standards (International) ("SFRS(I)") and International Financial Reporting Standards ("IFRS"). There have been no changes to the accounting policies described in the 2019 audited accounts other than the following changes in relation to rent concessions and government grants. Other amendments which are effective in 2020 and relevant to the Group's operations, do not have a significant effect on the Group's accounting policies. The Group has not early adopted any other standard or amendments that have been issued but not yet effective.
COVID-19 Related Rent Concessions: Amendment to IFRS 16 Leases
The Group has applied the Amendment, which is effective for annual reporting periods beginning on and after 1st June 2020, for the Group's annual reporting period commencing 1st January 2020. Where the Group is a lessee, the practical expedient is applied to account for the change in lease payments resulting from rent concessions granted as a direct consequence of the COVID-19 pandemic and elects not to assess these concessions as lease modifications when all of the following conditions are met:
(i) the revised lease payments are substantially the same as,
or less than, the consideration for the lease immediately
preceding the change;
(ii) reduction in lease payments relates to payment due on or
before 30th June 2021; and
(iii) there is no substantive change to the other terms and conditions
of the lease.
Rent concessions fulfilling the above conditions are recognised in the profit and loss over the period in which they cover.
Government grants
Grants from government are recognised at their fair values where there is reasonable assurance that the grants will be received, and the Group will comply with the conditions associated with the grants.
Grants that compensate the Group for expenses incurred are recognised in the profit and loss as other income on a systematic basis in the period in which the expenses are recognised. Unconditional grants are recognised in the profit and loss as other income when they become receivable. Grants related to assets are deducted in arriving at the carrying value of the related assets.
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$1.3934 (2019: US$1=S$1.3473), US$1=RM4.281 (2019: US$1=RM4.0925), US$1=IDR14,302 (2019: US$1=IDR13,901), US$1=VND23,309 (2019: US$1=VND23,173) and US$1=THB30.874 (2019: US$1= THB29.863).
The exchange rates used for translating the results for the period are US$1=S$1.4011 (2019: US$1=S$1.3578), US$1=RM4.2694 (2019:US$1=RM4.1204), US$1=IDR14,786 (2019: US$1=IDR14,187), US$1=VND23,335 (2019: US$1=VND23,271) and US$1=THB31.735 (2019: US$1=THB31.4938).
2 Net operating costs and operating profit
Group
2020 2019 Change
US$m US$m %
Cost of sales (5,155.5) (7,282.9) -29
Other operating income 553.3 187.0 196
Selling and distribution expenses (425.6) (415.8) 2
Administrative expenses (524.3) (546.9) -4
Other operating expenses (98.7) (18.7) 428
---------- ----------
Net operating costs (5,650.8) (8,077.3) -30
========== ==========
Operating profit is determined after
including:
Amortisation/depreciation of
* intangible assets (61.9) (86.2) -28
* right-of-use assets (74.1) (53.8) 37
* property, plant and equipment (390.3) (369.0) 6
* bearer plants (13.0) (13.5) -4
Fair value changes of
* investments(1) (24.5) 17.1 nm
* agricultural produce (3.2) 2.8 nm
* derivative not qualifying as hedge 1.4 0.1 nm
Profit/(loss) on disposal of:
* right-of-use assets - 0.8 -100
* property, plant and equipment 17.2 (1.3) nm
* associates and joint ventures(2) 417.9 0.5 nm
* investments 3.9 2.6 50
Loss on disposal/write-down of receivables
from collateral vehicles (27.3) (28.0) -3
Dividend and interest income from investments 36.0 57.2 -37
Write-down of stocks, net (11.4) (7.8) 46
(Impairment)/reversal of impairment of
- intangible assets (0.2) - nm
- property, plant and equipment (0.6) - nm
- debtors(3) (133.3) (52.2) 155
Net exchange gain/(loss)(4) (54.2) 3.1 nm
======== ========
nm - not meaningful
(1) Fair value gain/(loss) relates mainly to equity investments in Vinamilk and Toyota Motor Corporation
(2) Profit on disposal relates mainly to the sale of Permata Bank completed in May 2020
(3) Increase in impairment of debtors relates mainly to impairment of financing debtors attributable to
higher non-performing loan losses
(4) Net exchange gain/(loss) relates mainly to the impact of revaluing monetary liabilities denominated in US dollars
3 Tax
The provision for income tax is based on the statutory tax rates of the respective countries in which the companies operate after taking into account non-deductible expenses and group tax relief.
4 Earnings per share
Group
2020 2019
US$m US$m
Basic earnings per share
Profit attributable to shareholders 300.9 427.5
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic earnings per share USc76 USc108
====== =======
Diluted earnings per share USc76 USc108
====== =======
Underlying earnings per share
Underlying profit attributable to shareholders 137.7 407.3
Weighted average number of ordinary shares
in issue (millions) 395.2 395.2
Basic underlying earnings per share USc35 USc103
====== =======
Diluted underlying earnings per share USc35 USc103
====== =======
As at 30th June 2019 and 2020, there were no dilutive potential ordinary shares in issue.
A reconciliation of the profit attributable to shareholders and underlying profit attributable to shareholders is as follows:
Group
2020 2019
US$m US$m
Profit attributable to shareholders 300.9 427.5
Less: Non-trading items (net of tax and non-controlling
interests)
-------- ------
Fair value changes of agricultural produce (1.0) 0.8
Fair value changes of investment (22.7) 19.2
Net gain on disposal of interests in associates
and
joint ventures 188.3 0.2
Share of joint venture's gain on sale of 0.3 -
financial asset
Others (1.7) -
163.2 20.2
-------- ------
Underlying profit attributable to shareholders 137.7 407.3
======== ======
Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance. Items classified as non-trading items include fair value gains or losses on revaluation of investment properties, agricultural produce and equity investments which are measured at fair value through profit and loss; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets and other investments; provisions for closure of businesses; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into the Group's underlying business performance.
5 Borrowings
Group
At At
30.06.2020 31.12.2019
US$m US$m
Long-term borrowings:
- secured 537.1 765.1
- unsecured 2,712.3 2,855.5
------------ ------------
3,249.4 3,620.6
============ ============
Current borrowings:
- secured 703.2 1,138.5
- unsecured 3,582.5 3,426.6
------------ ------------
4,285.7 4,565.1
------------ ------------
Total borrowings 7,535.1 8,185.7
============ ============
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$504.5 million (31st December 2019: US$877.1 million).
6 Share capital
Group
2020 2019
US$m US$m
Six months ended 30 th June
Issued and fully paid:
Balance at 1st January and 30th June
* 395,236,288 (2019: 395,236,288) ordinary shares 1,381.0 1,381.0
There were no rights, bonus or equity issues during the period.
The Company did not hold any treasury shares as at 30th June 2020 ( 30th June 2019: Nil) and did not have any unissued shares under convertibles as at 30th June 2020 ( 30th June 2019: Nil).
There were no subsidiary holdings (as defined in the Listing Rules of the SGX-ST) as at 30th June 2020 ( 30th June 2019: Nil).
7 Revenue reserve
Group Company
2020 2019 2020 2019
US$m US$m US$m US$m
Movements :
Balance at 1st January 6,720.0 6,202.4 683.6 672.6
Defined benefit pension plans
- remeasurements (0.3) 0.2 - -
- deferred tax (0.2) - - -
Share of associates' and joint ventures'
remeasurements
of defined benefit pension plans,
net of tax (1.1) 0.1 - -
Profit/(loss) attributable to shareholders 300.9 427.5 (61.4) 244.8
Dividends paid by the Company (265.1) (276.5) (265.1) (276.5)
Change in shareholding - (0.5) - -
Other 1.3 - - -
Balance at 30th June 6,755.5 6,353.2 357.1 640.9
======= ======= ======= =======
8 Other reserves
Group Company
2020 2019 2020 2019
US$m US$m US$m US$m
Composition:
Asset revaluation reserve 403.4 403.3 - -
Translation reserve (1,763.1) (1,713.9) 256.8 326.5
Fair value reserve 8.4 9.6 - -
Hedging reserve (71.6) (28.5) - -
Other reserve 3.3 3.3 - -
--------- --------- ------ -------------
Balance at 30th June (1,419.6) (1,326.2) 256.8 326.5
========= ========= ====== =============
Movements :
Asset revaluation reserve
Balance at 1st January and 30th June 403.4 403.3 - -
========= ========= ====== =============
Translation reserve
Balance at 1st January (1,611.0) (1,852.5) 338.0 305.3
Translation difference (151.9) 138.6 (81.2) 21.2
Translation reserve realised (0.2) - - -
--------- --------- ------ -------------
Balance at 30th June (1,763.1) (1,713.9) 256.8 326.5
========= ========= ====== =============
Group Company
2020 2019 2020 2019
US$m US$m US$m US$m
Fair value reserve
Balance at 1st January 12.2 0.5 - -
Financial assets at FVOCI
- fair value changes (1.4) 6.9 - -
- deferred tax - (0.1) - -
- transfer to profit and loss 1.4 (0.2) - -
Share of associates' and joint ventures'
fair value changes
of Financial assets at FVOCI, net
of tax (2.5) 2.5
Others (1.3) - - -
------ ------ ----------- -----------
Balance at 30th June 8.4 9.6 - -
====== ====== =========== ===========
Hedging reserve
Balance at 1st January (48.8) 5.8 - -
Cash flow hedges
- fair value changes (0.9) (29.7) - -
- deferred tax (1.1) 7.4 - -
- transfer to profit and loss 1.4 0.8 - -
Share of associates' and joint ventures'
fair value changes
of cash flow hedges, net of tax (22.2) (12.8) - -
Balance at 30th June (71.6) (28.5) - -
====== ====== =========== ===========
Other reserve
Balance at 1st January and 30th June 3.3 3.3 - -
====== ====== =========== ===========
9 Non-controlling interests
Group
2020 2019
US$m US$m
Balance at 1st January as previously reported 8,124.4 7,342.1
Financial assets at FVOCI
- fair value changes (1.5) 7.5
- deferred tax - (0.1)
- transfer to profit and loss 1.2 (0.2)
Share of associates' and joint ventures'
fair value changes of
Financial assets at FVOCI, net of tax (2.4) 2.5
Cash flow hedges
- fair value changes (10.7) (46.3)
- deferred tax 0.3 12.1
* transfer to profit and loss 1.4 0.8
Share of associates' and joint ventures'
fair value changes of cash
flow hedges, net of tax (51.5) (28.3)
Defined benefit pension plans
- remeasurements (0.4) 0.1
- deferred tax (0.6) -
Share of associates' and joint ventures'
remeasurements of
defined benefit pension plans, net of tax (0.7) (0.2)
Translation difference (173.4) 146.1
Translation reserve realised (0.1) -
Profit for the year 512.5 511.1
Issue of shares to non-controlling interests 0.8 (356.9)
Dividends paid (110.9) 15.0
Change in shareholding - (2.5)
Acquisition of subsidiaries - (0.2)
Balance at 30th June 8,288.4 7,602.6
======= =======
10 Cash flows from operating activities
Group
2020 2019
US$m US$m
Profit before tax 940.5 1,194.6
Adjustments for:
------- -------
Financing income (48.6) (44.4)
Financing charges 143.2 178.0
Share of associates' and joint ventures' results
after tax (91.3) (248.4)
Amortisation/depreciation of
- intangible assets 61.9 86.2
- right-of-use assets 74.1 53.8
- property, plant and equipment 390.3 369.0
- bearer plants 13.0 13.5
Impairment/(reversal of impairment) of
- intangible assets 0.2 -
- property, plant and equipment 0.6 -
- debtors 133.3 52.2
Fair value changes of:
- investment 24.5 (17.1)
- agricultural produce 3.2 (2.8)
(Profit)/loss on disposal of:
- right-of-use assets - (0.8)
- property, plant and equipment (17.2) 1.3
- associate and joint venture (417.9) (0.5)
- investments (3.9) (2.6)
Loss on disposal/write-down of receivables
from collateral vehicles 27.3 28.0
Amortisation of borrowing costs for financial
services companies 4.6 4.9
Write-down of stocks 11.4 7.8
Changes in provisions 9.8 17.7
Foreign exchange loss 34.8 3.1
353.3 498.9
Operating profit before working capital changes 1,293.8 1,693.5
Changes in working capital:
------- -------
Properties for sale 5.1 6.1
Stocks(1) 158.5 41.2
Concession rights (5.1) (39.0)
Financing debtors (80.8) (245.9)
Debtors (2) 703.2 (222.4)
Creditors (3) (919.5) (271.3)
Pensions 15.6 13.7
(123.0) (717.6)
------- -------
Cash flows from operating activities 1,170.8 975.9
======= =======
(1) Decrease in stocks balance mainly due to lower purchases
(2) Decrease in debtors balance mainly due to lower sales activities
(3) Decrease in creditors balance mainly due to lower trade purchases amid slowdown in demand
11 Dividend and closure of books
The Board has declared an interim one-tier tax exempt dividend of USc9 per share (2019: USc18 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 Wednesday, 2nd September 2020 (" Record Date") up to, and including Thursday, 3rd September 2020 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 Record 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 Record Date will rank for the interim dividend.
The interim dividend will be paid on Friday, 2nd October 2020. The Company will cease to offer payment of the interim dividend in Singapore dollars as a currency conversion service is now being offered directly by The Central Depository (Pte) Limited.
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 shareholders' mandate
and transactions pursuant to Rule 920
conducted under (excluding transactions
shareholders' mandate less than
pursuant to Rule 920) S$100,000)
-------------------------- ---------------------------
Name of interested person Nature of relationship US$m US$m
and nature of transaction
Six months ended 30th June
2020
Hongkong Land Ltd
- management support Associate of the Company's
services controlling shareholder - 0.1
Jardine Matheson Limited
- management support Associate of the Company's
services controlling shareholder - 1.0
Jardine International Associate of the Company's
Motors Limited controlling shareholder 2.1 -
- management consultancy
services
Jardine International Associate of the Company's
Motors (S) controlling shareholder
Pte. Limited 0.3 -
- management consultancy
services
Jardine Matheson & Co.,
Ltd
- human resource and Associate of the Company's
administration services controlling shareholder - 0.2
2.4 1.3
========================== ===========================
13 Additional information
Group
2020 2019 Change
US$m US$m %
Astra International
Automotive 15.7 111.5 -86
Financial services 69.8 99.7 -30
Heavy equipment, mining, construction
& energy 82.4 117.3 -30
Agribusiness 11.6 0.4 nm
Infrastructure & logistics (7.0) 2.7 nm
Information technology 0.5 1.6 -69
Property 2.4 2.3 4
------- -------
175.4 335.5 -48
Less: Withholding tax on dividend (3.8) (9.2) -59
-------
171.6 326.3 -47
-------
Direct Motor Interests
Singapore 1.4 28.8 -95
Malaysia (2.6) (0.7) 271
Myanmar (1.5) (2.8) -46
Indonesia (Tunas Ridean) 3.0 9.9 -70
Less: central overheads (0.6) (2.1) -71
(0.3) 33.1 nm
------- -------
Other Strategic Interests
Siam City Cement 11.5 12.1 -5
Refrigeration Electrical Engineering 3.2 3.8 -16
Vinamilk 11.8 27.8 -58
Truong Hai Auto Corporation
------- -------
- automotive 4.2 22.3 -81
- real estate 1.2 0.4 200
- agriculture (4.1) - nm
------- -------
1.3 22.7 -94
------- -------
27.8 66.4 -58
------- -------
Corporate costs
Central overheads (9.1) (11.9) -24
Dividend income from other investments 2.7 2.7 -
Net financing charges (13.8) (20.1) -31
Exchange differences (41.2) 10.8 nm
------- -------
(61.4) (18.5) 232
------- -------
Underlying profit attributable to shareholders 137.7 407.3 -66
======= =======
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 other than the non-trading items shown in Note 5 of this report.
No significant event or transaction other than as contained in this report has occurred between 1st July 2020 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 Rules of the SGX-ST.
- 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 half year ended 30th June 2020 can be accessed through the internet at 'www.jcclgroup.com'.
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 rns@lseg.com or visit www.rns.com.
END
IR KKKBBOBKKAON
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