Jardine Cycle & Carriage - Half Year Statements

Jardine Cycle & Carriage Limited

2014 Half Year Financial Statements and Dividend Announcement

The following announcement was issued today by the Company's 74%-owned subsidiary, Jardine Cycle & Carriage Limited.

For further information, please contact:

Jardine Matheson Limited

Neil M McNamara (852) 2843 8227

GolinHarris

Kennes Young (852) 2501 7987

1st August 2014

JARDINE CYCLE & CARRIAGE LIMITED

2014 HALF YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

· Underlying earnings per share 9% down

· Astra's earnings in rupiah terms rose 11%, but were lower in US$ terms

· Much improved contribution from the Group's other motor interests

''Trading conditions are likely to remain mixed for the Group's businesses for the remainder of the year. While Astra's operating performance is expected to be satisfactory, it will continue to face heightened competition in the car market and the effects of softer coal prices. The weaker rupiah exchange rate will reduce Astra's full-year contribution to the Group."

Ben Keswick, Chairman

1st August 2014

The exchange rate of US$1=S$1.25 (31st December 2013: US$1=S$1.27) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.26 (30th June 2013: US$1=S$1.25) was used for translating the results for the period.

The financial results for the six months ended 30th June 2014 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors.

* The basis for calculating underlying earnings is set out in Note 4 of this report.

# The S$ equivalent is an estimate as the actual amount of the interim dividend will be determined on Books Closure Date referred to in Note 11.

CHAIRMAN'S STATEMENT

Overview

The Group's businesses produced mixed results in the first half of the year. There were generally strong operating performances in Astra which led to an improved rupiah result, but its contribution was reduced by a weaker exchange rate. The Group's other motor interests saw an improved result overall.

Performance

The Group's revenue for the first half declined by 9% to US$9.5 billion. Underlying profit was 9% lower at US$413 million, while underlying earnings per share also declined by 9% to US¢116.05. Profit attributable to shareholders at US$433 million was 4% lower, after accounting for a net gain of US$20 million in non-trading items attributable largely to the recognition of negative goodwill arising on the acquisition of a 50% interest in Astra Aviva Life.

Astra contributed US$381 million to the Group's underlying profit, 12% lower than the previous year as the improved performance in rupiah terms was reduced by the effect of the rupiah exchange rate, which was on average 17% weaker than in the first half of 2013. The contribution to underlying profit from the Group's other motor interests of US$37 million was up 50%.

The Group's consolidated net debt at the end of June 2014 was US$410 million, excluding borrowings within Astra's financial services subsidiaries, representing 4% of total equity, compared to US$303 million at the end of 2013, which represented 3% of total equity. Net debt within Astra's financial services subsidiaries was US$3.5 billion at the end of June, similar to the level at the end of last year.

The Board has declared an interim one-tier tax exempt dividend of US¢18 per share (2013: US¢18 per share).

Group Review

Astra

Astra reported a net profit equivalent to US$837 million under Indonesian accounting standards, 11% up in its reporting currency. Improved results from its agribusiness and contract mining operations were partially offset by a reduction in earnings from its automotive businesses. It benefited from a non-trading gain from the recognition of negative goodwill arising on the acquisition of a 50% interest in Astra Aviva Life.

Automotive

While automotive demand remained favourable during the first half, discounting in the car market continued to have a negative impact on earnings. Astra's component businesses also made a lower contribution following the reduction in its interest in Astra Otoparts from 96% to 80% in the second quarter of 2013.

The wholesale market for cars grew by 7% to 642,000 units. However, Astra's car sales rose by 4% to 334,000 units, resulting in its market share decreasing from 53% to 52%. The group launched eleven new models and seven revamped models during the period.

The wholesale market for motorcycles increased by 7% to 4.2 million units. Astra Honda Motor's sales increased by 11% to 2.6 million units, with its market share increasing from 60% to 62%. Astra Honda Motor launched eleven revamped models during the half year.

Astra Otoparts, the group's 80%-owned component business, saw higher sales volumes although net income fell by 11% to US$39 million on lower manufacturing margins.

Financial Services

Net income from Astra's financial services businesses increased by 15% to US$211 million, after accounting for a US$38 million non-trading gain arising from the recognition of negative goodwill following the acquisition of a 50% interest in Astra Aviva Life. Excluding the non-trading gain, net income from financial services was 5% lower at US$174 million. Strong growth from Federal International Finance, in particular, was offset by a decline in contribution from Asuransi Astra Buana.

The amount financed through Astra's automotive-focused consumer finance operations grew by 11% to US$2.6 billion, including balances financed through joint bank financing without recourse. The amount financed through the heavy equipment-focused finance operations declined by 23% to US$168 million due to a reduction in sales.

Astra's 45%-held joint venture, Permata Bank, reported net income of US$68 million, a decrease of 2%.

Group insurance company, Asuransi Astra Buana, recorded lower earnings as strong growth in gross written premiums was offset by a decline in contribution from investment earnings due to the recognition of certain gains during the first quarter of 2013 on the redemption of mutual fund holdings.

During the second quarter, Astra completed the disposal of a 25% interest in Astra Sedaya Finance to Permata Bank for a cash consideration of US$187 million, with the resulting US$89 million gain recorded directly in equity.

Heavy Equipment and Mining

United Tractors, which is 60%-owned, reported an 11% increase in net revenue and a 42% improvement in net income to US$280 million.

In the construction machinery business, net revenue decreased marginally reflecting a 10% decline in sales of Komatsu heavy equipment to 2,207 units, offset by higher parts and service revenue.

The contract mining operations of subsidiary, Pamapersada Nusantara, benefited from improved coal volumes on lower stripping ratios. It reported a 12% increase in net revenue as contract coal production increased 20% to 60 million tonnes, while contract overburden removal decreased 3% to 401 million bank cubic metres.

United Tractors' mining subsidiaries reported an increase in net revenue of 46%, with coal sales 51% higher at 3.4 million tonnes, although the average coal sale prices declined by 7%. Increased fuel costs also reduced the gross profit margins. United Tractors and its subsidiaries own interests in nine coal mines with combined reserves estimated at 409 million tonnes at the previous year end.

Agribusiness

Astra Agro Lestari, which is 80%-held, reported net income of US$117 million, up 91%. Average crude palm oil prices achieved were 32% higher at Rp8,728/kg, although crude palm oil sales decreased by 10% to 675,000 tonnes, primarily due to the commencement of operations of Astra Agro Lestari's refinery in West Sulawesi, which sold 92,000 tonnes of olein during the first half.

Infrastructure, Logistics and Others

The contribution to Astra's net income from infrastructure, logistics and others fell by 23% to US$15 million.

The 72.5 km Tangerang-Merak toll road operated by 79%-owned Marga Mandalasakti reported a 4% increase in traffic volume to 21 million vehicles with 14% higher average tariffs. The group's 95%-owned greenfield 40.5 km Kertosono-Mojokerto toll road near Surabaya, which was acquired in late 2011, remains under construction. Section 1, which is 14.7 km, is expected to commence operations before the end of 2014, with subsequent stages coming into operation during 2015, subject to the completion of land acquisitions. Taken together with Astratel's 40% interest in the greenfield 11.2 km Kunciran - Serpong toll road on Jakarta's outer ring-road, the group has an interest in 124.2 km of toll road.

Serasi Autoraya's revenue improved despite the number of vehicles under contract at its TRAC car rental business being lower by 5% at 30,000 units, but the benefit was offset by higher operating costs, resulting in a decline in net income by 25% to US$6 million.

Anandamaya Residences, the group's 60%-held luxury residential development project located in Jakarta's Central Business District, is expected to launch public sales during the third quarter. This high-end development consists of approximately 500 apartment units, with completion expected in 2018.

Information Technology

Astra Graphia, 77%-owned, which is active in the area of document information and communication technology solutions and is the sole distributor of Fuji Xerox office equipment in Indonesia, reported net income of US$9 million, up 53%.

Group's Other Motor Interests

The Group's other motor interests contributed a profit of US$37 million, 50% up on the previous year.

Earnings from the Singapore motor operations was 30% higher, primarily due to increased contribution from Mercedes-Benz passenger cars, after-sales, Kia passenger cars/taxis and used cars. In Malaysia, Cycle & Carriage Bintang's contribution was higher as it benefited from good demand for the newer Mercedes-Benz models. In Indonesia, Tunas Ridean's contribution was 25% lower in the face of competitive pressures in the car market and lower gains on disposal of ex-rental vehicles. In Vietnam, Truong Hai Auto Corporation's contribution was significantly higher due to the strong sales and good margins from vehicle sales as well as lower financing costs. The Group's operations in Myanmar incurred a small start-up loss.

Outlook

Trading conditions are likely to remain mixed for the Group's businesses for the remainder of the year. While Astra's operating performance is expected to be satisfactory, it will continue to face heightened competition in the car market and the effects of softer coal prices. The weaker rupiah exchange rate will reduce Astra's full-year contribution to the Group.

Ben Keswick

Chairman

1st August 2014

Statement pursuant to Rule 705(5) of the Listing Manual

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 2014 to be false or misleading in any material respect.

On behalf of the Directors

Ben Keswick

Director

Hassan Abas

Director

1st August 2014

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