23rd Mar 2006 12:33
Jardine Strategic Hldgs Ld23 March 2006 To: Business Editor 23rd March 2006 For immediate release PT Astra International Tbk2005 Financial Statements The following announcement was issued today by the Company's 62%-ownedsubsidiary, Jardine Cycle & Carriage Limited, which holds 50.1% of PT AstraInternational Tbk. For further information, please contact: Jardine Matheson LimitedNeil M McNamara (852) 2843 8227 Matheson & Co LimitedMartin Henderson (44) 207 816 8135 GolinHarrisKennes Young (852) 2501 7987 Weber Shandwick Square MileRichard Hews / Helen Thomas (44) 207 067 0700 23 March 2006 PT ASTRA INTERNATIONAL TBK2005 FINANCIAL STATEMENTS Highlights• Underlying earnings per share up 9.9% to Rp 1,348• Significant growth in motor vehicle and motorcycle sales• Strong performance from United Tractors and its mining contracting subsidiary, Pama• Growth in Astra Agro Lestari's palm oil output offset by reduction in CPO price• New financial services joint ventures "2005 has been a strong year for Astra. The Group performed above expectationsacross all its major lines of business, although this slowed down in the lastquarter as consumer purchasing power declined in the face of escalating fuelprices and higher interest rates. Current market conditions are expected to soften Astra's performance in 2006.However the Group is well financed with a strong balance sheet and itsmedium-term prospects remain positive." Michael D. RuslimPresident Director23 March 2006 Group Results___________________________________________________________________________ Year ended 31 December ___________________________________________________________________________ 2005 2004 Change Rp bn Rp bn %___________________________________________________________________________Revenue 61,172 44,924 36 Operating profit 6,414 4,975 29 Underlying profit 5,457 4,966 10 Net income 5,457 5,406 1___________________________________________________________________________ Rp Rp ___________________________________________________________________________Underlying earnings per share* 1,348 1,227 10 Earnings per share* 1,348 1,335 1___________________________________________________________________________ As at 31 December ___________________________________________________________________________ 2005 2004 Change Rp bn Rp bn %___________________________________________________________________________Shareholders' funds 20,424 16,485 24 ___________________________________________________________________________ Rp Rp ___________________________________________________________________________Net asset value per share 5,045 4,072 24 ___________________________________________________________________________ The financial results for the twelve months ended 31 December 2005 and 31December 2004 have been prepared in accordance with accounting principlesgenerally accepted in Indonesia. These results have been audited in accordancewith the auditing standards established by the Indonesian Institute ofAccountants. PT United Tractors Tbk has been consolidated since June 2004. \* The basis for calculating underlying profit and earnings per share is set outin the Note. PRESIDENT DIRECTOR'S STATEMENT Overview The Indonesian economy grew strongly during 2005, although consumer purchasingpower was impacted in the last quarter of the year by escalating fuel prices andhigher interest rates. Despite the more difficult trading conditions, Astraclosed the year well. Performance The Group's underlying profit for 2005 increased by 9.9% to Rp 5.5 trillion andunderlying per earnings per share increased to Rp 1,348, with most Groupbusinesses reporting strong growth. Net income increased by 1% to Rp 5.5trillion from Rp 5.4 trillion in 2004. Automotive Underlying profit from the automotive businesses rose by 10.9% to Rp 3.2trillion, benefiting from strong consumer demand for both motor vehicles andmotorcycles for most of the year. The overall market for motor vehicles grew by 10.5% to 533,917 units whileAstra's motor vehicle sales grew by 20.1% to 258,892 units mainly due to salesof the Toyota Avanza, Toyota Innova, Daihatsu Xenia and Isuzu Panther, while itsmarket share increased by 3.9% from last year to 48.5%. The market for motorcycles increased by 30.5% to 5.1 million units while Hondamotorcycle sales grew by 30.1% to 2.6 million units maintaining its market at52.2%. PT Astra Honda Motor completed the construction of its thirdmanufacturing plant in Cikarang and started full production at the end ofSeptember 2005. PT Astra Otoparts Tbk ("AOP") component sales rose by 31.7% to Rp 3.9 trillionbenefiting from the overall growth in the automotive market. Net profitincreased from Rp 223.2 billion to Rp 279.0 billion. Non-automotive Underlying profit from the non-automotive businesses, which comprise mainlyfinancial services, heavy equipment and agribusiness, grew by 8.5% to Rp 2.3trillion. Profit from the financial services sector grew as motor vehicle and motorcyclefinancing also benefited from the improved motor vehicle and motorcycle markets.The amount financed by Federal International Finance and Astra Credit Companiesfor the year increased by 30.4% to Rp 23.9 trillion. Bank Permata registeredsubstantial loan growth in 2005, driven by the consumer and SME segments.However, the increase in interest rates, mark-to-market loss on governmentbonds, and investments in building capabilities resulted in a lower net profitfor the Bank. Although PT Astra Agro Lestari Tbk ("AAL") crude palm oil ("CPO") sales volumewas 13.4% higher, net profit from agribusiness was slightly lower at Rp 790.4billion compared to Rp 800.8 billion as a result of a 9% decline in CPO prices. Astra's heavy equipment business also made a strong contribution. A total of2,406 units of Komatsu heavy equipment were sold, an increase of 49% on theprevious year, due to strong growth in the mining sector. Mining contractor, PTPamapersada Nusantara, also contributed to the strong results with 41% higheroverburden and 20% higher coal extraction. Group The Group's net asset value grew by 23.9% to Rp 20.4 trillion as at 31 December2005 and the net asset value per share rose to Rp 5,045. The Group's net debt as at 31 December was Rp 8.4 trillion (2004: Rp 5.1trillion). Excluding the Group's financial services businesses, the Group's netdebt at the year end was Rp 2.7 trillion (2004: zero), representing a net debtto equity ratio of 13.4%. The directors intend to propose a final dividend of Rp 340 per share (2004: Rp270 per share) for approval at the Annual General Meeting on 24 May 2006, whichtogether with the interim dividend of Rp 100 per share (2004: Rp 100 per share)paid in November 2005, will give a total dividend for the year of Rp 440 pershare (2004: Rp 370 per share). Developments During the year, Astra invested a total of Rp 220 billion to increase itsownership in UT by 2.00% to 58.46%, in AOP by 1.33% to 86.72% and in AAL by0.04% to 79.68%. The Group continues to expand its financial services activities. Komatsu AstraFinance, a 50:50 joint venture with Komatsu, was established to finance heavyequipment in the mining sector. Astra also signed a joint venture agreement withToyota Financial Services Corporation of Japan in October 2005. The 50:50 jointventure, Toyota Astra Financial Services, will provide finance for Toyotavehicle sales, commencing later in 2006. In February 2006, Marubeni Corporation increased its shareholding in SAN Financefrom 4.91% to 40% through a rights issue of Rp 77.0 billion. SAN Finance (now60% owned by the Group) is involved in the heavy equipment financing business.Marubeni will be providing SAN Finance with USD funding support to meet USDfinancing demand in the market. Astra together with Citigroup purchased a 53.99% interest in PT MargaMandalasakti. Astra paid Rp 146.8 billion for a 34% shareholding. The companyoperates the toll road between Tangerang and Merak. The Group continues toreview opportunities in the infrastructure sector, concentrating on toll roads,power plants and water utility companies. Prospects "2005 has been a strong year for Astra. The Group performed above expectationsacross all its major lines of business, although this slowed down in the lastquarter as consumer purchasing power declined in the face of escalating fuelprices and higher interest rates. Current market conditions are expected to soften Astra's performance in 2006.However the Group is well financed with a strong balance sheet and itsmedium-term prospects remain positive." Michael D. RuslimPresident Director23 March 2006 NOTEEarnings per share GroupYear ended 31 December 2005 2004 Basic earnings per shareProfit attributable to shareholders (Rupiah billions) 5,457 5,406Weighted average number of ordinary shares in issue (millions) 4,048 4,048Basic and diluted earnings per share (Rupiah) 1,348 1,335 ======= =======Underlying earnings per shareUnderlying profit attributable to shareholders (Rupiah billions) 5,457 4,966Weighted average number of ordinary shares in issue (millions) 4,048 4,048Basic and diluted earnings per share (Rupiah) 1,348 1,227 ======= ======= A reconciliation of net income and underlying profit is as follows: GroupYear ended 31 December 2005 2004 Change Rp bn Rp bn % Net income 5,457 5,406 1Less: ______ ______Gain on sale of investments - 324 n.m.Adjustments arising from adoption of PSAK 38 (Revised 2004) - 116 n.m. ______ ______ - 440 ______ ______Underlying profit 5,457 4,966 10 ====== ======n.m. - not meaningful - end - For further information, please contact:PT Astra International TbkAminuddin, Corporate SecretaryTel: 62 - 21 - 6530 4956 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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