JC&C 2009 Financial Statements & Dividends

RNS Number : 6627H

Jardine Strategic Hldgs Ld

25 February 2010

 

 

To: Business Editor 25th February 2010

For immediate release

 

 

Jardine Cycle & Carriage Limited

2009 Financial Statements and Dividend Announcement

 

 

 

 

The following announcement was issued today by the Company's 69%-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

 

 

 

 

 

 

25th February 2010

 

 

JARDINE CYCLE & CARRIAGE LIMITED

2009 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

 

Highlights

 

·; Underlying earnings per share up 7%

·; Record results from Astra

·; Interest in Thaco in Vietnam increased to 29%

·; A 16% increase in full year dividend proposed

 

"The outlook for 2010 is positive for Jardine Cycle & Carriage as the countries in which the Group is represented continue to provide a reasonable operating environment. Concerns remain, however, that global uncertainties still have the potential to impact the Group's activities."

 

Anthony Nightingale, Chairman

25th February 2010

 

 

Group Results
	Year ended 31st December
	2009 US$m		2008 US$m	Change %	2009 S$m
Revenue	10,640		11,192	-5	15,457
Profit after tax	1,194		1,063	12	1,734
Underlying profit attributable to shareholders*	515		477	8	748
Profit attributable to shareholders	503		448	12	730
	US¢		US¢		S¢
Underlying earnings* per share	144.73		135.38	7	210.24
Earnings per share	141.36		127.15	11	205.34
Dividend per share**	58.0		50.0	16	81.8
	US$m		US$m		S$m
Shareholders' funds	2,971		2,263	31	4,169
	US$		US$		S$
Net asset value per share	8.35		6.36	31	11.72

 

The exchange rate of US$1=S$1.40 (31st December 2008: US$1=S$1.44) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.45 (31st December 2008: US$1=S$1.41) was used for translating the results for the year.

 

The financial results for the year ended 31st December 2009 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 5 of this report.

** The S$ equivalent is an estimate as the actual amount of the final dividend will be determined on Books Closure Date referred to in Note 14.

 

 

 

 

CHAIRMAN'S STATEMENT

 

Overview

 

While 2009 began with concerns over the possibility of a deep and prolonged recession, by the middle of the year the positive measures taken by central banks and governments worldwide began to be felt. In particular, strong domestic demand and a relatively low dependence on exports led to growth in the Indonesian economy, enabling Astra to produce a fine result.

 

Performance

 

The Group's revenue for the year ended 31st December 2009 was US$10.6 billion, 5% below the previous year. Underlying profit for the year grew by 8% to US$515 million. Underlying earnings per share were 7% higher at US¢144.73. Profit attributable to shareholders increased by 12% to US$503 million after accounting for a net non-trading loss of US$12 million, mainly representing fair value losses on oil palm plantations partly offset by a gain on a disposal by Tunas Ridean.

 

Astra's contribution to the Group's underlying profit increased by 5% to US$485 million. The Group's share of profit from its non-Astra motor interests increased by 32% to US$58 million. Corporate costs and withholding tax on dividends received from Indonesia amounted to US$28 million.

 

The Board is recommending a final one-tier tax exempt dividend of US¢47.00 per share (2008: US¢36.00 per share). This, together with the interim dividend, will give a total dividend per share of US¢58.00 for 2009, an increase of 16%.

 

Business Activity

 

Astra enjoyed an excellent year and produced record results as the Indonesian economy was largely insulated from the global economic recession. Earnings from its motor car, auto component, financial services and contract mining activities improved, more than compensating for weaker results from its agribusiness and motorcycle operations.

 

While the wholesale market for motor cars in Indonesia experienced a reduction, strong performances from its Toyota and Daihatsu marques enabled Astra to increase its market share. The motorcycle wholesale market also declined, although Astra did well to maintain its leadership position amidst aggressive competition. Its consumer finance operations showed improvement following growth in their overall loan book, while Bank Permata also reported a higher profit.

 

Astra Agro Lestari experienced a decline in profit due to lower palm oil prices. United Tractor's results improved following an excellent performance from its contract mining subsidiary, Pamapersada Nusantara, which benefited from the continued strength of the coal industry in Indonesia.

 

The Group's motor operations in Singapore did well in a challenging year. The performance of Mercedes-Benz was fairly resilient, showing only a modest decline in sales. Mitsubishi sales were adversely affected by the strong Yen, but Kia exceeded expectations with healthy demand for its competitively priced vehicles.

 

In Malaysia, Cycle & Carriage Bintang reported an improvement in earnings, largely due to cost savings arising from its restructuring in 2008 and a refund of duties written off in earlier years.

 

Tunas Ridean's automotive sales reduced in line with the Indonesian market. It recorded a non-recurring gain upon the sale of a 51% interest in its wholly-owned finance business to Bank Mandiri at the beginning of the year. In February 2010, the Group increased its interest in Tunas Ridean from 38% to 44% at a cost of US$13 million.

 

In Vietnam, Truong Hai Auto Corporation delivered a strong set of results as it benefited from a recovery in the economy. This compares with a loss recorded for the five-month period in 2008 that followed the Group's acquisition of its initial 20% interest. The Group's shareholding was increased to 29% in 2009 through a further investment of US$44 million.

 

People

 

We were deeply saddened by the passing of Michael Ruslim, President Director of Astra, who died on 20th January 2010 after a short but severe illness. Michael was a good friend and trusted colleague, and his death came as a great shock to us all. He first joined Astra in 1983 and became its inspirational leader following his appointment as President Director in 2005. He will be remembered for his outstanding achievements and for his great contribution to Indonesia.

 

Prijono Sugiarto has become the acting President Director of Astra prior to the consideration of his formal appointment as the new President Director at an Extraordinary General Meeting to be held in March. Prijono joined Astra in 1990 and has most recently been responsible for all of Astra's non-Toyota automotive businesses.

 

On behalf of the Directors, I wish to thank our 137,000 staff employed across the Group. The Group's success is due in large part to their hard work, dedication and spirit of excellence in the face of challenging times. I also wish to thank our customers, shareholders and business partners for their continued support.

 

Outlook

 

The outlook for 2010 is positive for Jardine Cycle & Carriage as the countries in which the Group is represented continue to provide a reasonable operating environment. Concerns remain, however, that global uncertainties still have the potential to impact the Group's activities.

 

Anthony Nightingale

Chairman

25th February 2010

 

 

 

 

Group Managing Director's Review

 

Overview

 

The Group's excellent results for 2009 were significantly better than expected at the start of the year due primarily to the continued growth of the Indonesian economy which helped Astra to achieve a record profit.

 

Performance

 

The Group's revenue of US$10.6 billion for the year ended 31st December 2009 was 5% down on the previous year. Underlying profit was 8% higher at US$515 million, while underlying earnings per share were up 7% at US¢144.73. Astra's contribution to underlying profit grew by 5% to US$485 million, despite a 6% decline in the Rupiah exchange rate compared with the previous year. The Group's non-Astra motor interests contributed US$58 million, an increase of 32%, mainly due to strong results from Vietnam.

 

Corporate costs and withholding tax on dividends from Indonesia amounted to US$28 million. The profit attributable to shareholders for the year was 12% higher at US$503 million, after accounting for a non-trading loss of US$12 million. The non-trading loss consisted of a fair value loss in the Group's oil palm plantations, partly offset by a gain on the sale by Tunas Ridean of a 51% interest in its finance company.

 

The Group's consolidated net cash, excluding borrowings within Astra's financial services operations, was US$64 million at 31st December 2009. Strong operating cash flows during the year led to an improvement over the consolidated net debt of US$157 million existing at the end of 2008. The net debt within Astra's financial services operations was US$1.5 billion, up from US$1.2 billion at the end of 2008. At the Jardine Cycle & Carriage parent company level, there was net cash of US$1 million.

 

Group Review

 

Astra

 

The Indonesian economy was one of the very few in Southeast Asia that grew in 2009, benefiting from a fairly resilient domestic demand and a relatively low dependence on exports. Following a slow first half, Astra achieved a record net profit for the year equivalent to US$969 million under Indonesian accounting standards, some 9% higher in its reporting currency than in 2008. While earnings from its agribusiness and motorcycle business were down, this was more than compensated by improved profits in its motor car, auto component, financial services and contract mining activities.

 

Automotive and Financial Services

Astra's automotive and financial services businesses contributed US$314 million to the Group's underlying profit in 2009, 6% higher than the previous year despite reduced motorcycle sales and the weaker Rupiah.

 

The Indonesian wholesale motor car market faced weaker demand, particularly in the first half and declined by 20% to some 486,000 units in 2009. A popular model range meant that Astra's motor car sales decreased by only 12% to 281,000 units, producing a strong improvement in its market share from 52% to 58%. The group's overall results benefited from a firming exchange rate and cost reduction programmes.

 

The Indonesian wholesale motorcycle market declined by 6% to 5.9 million units, having been 17% down at the half year. Astra Honda Motor's sales declined in line with the market to 2.7 million units, maintaining its market share at 46%. Automotive component manufacturer Astra Otoparts reported a 36% increase in net profit, with improvements across most of its activities.

 

Astra's consumer finance operations produced higher profits following the growth in their loan book. Astra's 45%-owned associate, Bank Permata, reported a 6% improvement in net profit, mainly due to higher operating income.

 

Natural Resources & Other

Astra's natural resources and other businesses, comprising agribusiness, heavy equipment, mining, information technology and infrastructure, contributed US$191 million to the Group's underlying profit, unchanged from the previous year. This was primarily due to the strong performance from most of the businesses, which more than compensated for the impact of lower crude palm oil prices.

 

In agribusiness, 80%-held Astra Agro Lestari reported a net profit of US$160 million, representing a 37% decline. While palm oil production rose 10% in 2009 to 1.1 million tonnes, crude palm oil prices achieved were some 13% lower than in the previous year.

 

In heavy equipment, 60%-held United Tractors recorded a 43% rise in net profit to US$369 million. While sales of Komatsu heavy equipment fell 28% to 3,100 units, the negative effect on earnings was offset by higher revenues from parts and services. Mining subsidiary Pamapersada Nusantara recorded a strong improvement in its results as it benefited from the continued expansion of coal production in Indonesia. It increased coal extraction by 15% to 68 million tonnes and overburden removal by 35% to 598 million bcm.

 

In information technology, 77%-owned Astra Graphia reported a 7% improvement in net profit, due to higher revenues. Astra's infrastructure investments performed satisfactorily as 30%-held PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, increased its sales volume by 2% to 138 million cubic metres, and Marga Mandalasakti, the 79%-owned toll road operator, reported slightly higher traffic volume of 27 million vehicles during the year.

 

Other Motor Interests

 

Underlying profit from the Group's other motor interests in 2009 was up 32% at US$58 million.

 

Singapore

The Singapore motor operations performed satisfactorily in a challenging year contributing a profit of US$36 million. This result, which was marginally higher than the previous year, benefited from government stimulus subsidies.

 

The overall passenger car market fell by 27% to 72,400 units in 2009, while the commercial vehicle market fell by 31% to 7,500 units. Although the Group sold a total of 11,000 passenger cars, which was 16% lower than the previous year, its market share increased from 13% to 15%. Sales of commercial vehicles were 22% lower at 600 units, reflecting an 8% market share. Mercedes-Benz passenger car sales were fairly resilient, showing only a modest sales decline. Mitsubishi passenger car sales were adversely impacted by the strong Yen and fell by 60%, while Kia passenger car sales grew by 87% owing to competitive pricing.

 

Malaysia

In Malaysia, 59%-owned Cycle & Carriage Bintang contributed a 29% increase in underlying profit of US$4 million as it benefited from a refund of duties written off in earlier years and lower overhead expenses following the restructuring in 2008. Its Mercedes-Benz passenger car sales in 2009 were some 6% higher than in the previous year, which had suffered from supply constraints of the C-Class.

 

Indonesia

Tunas Ridean saw sales of motor vehicles and motorcycles decline by 6% and 10%, respectively. In addition, lower finance income was earned due to the sale of a 51% stake in the wholly-owned Tunas Finance to Bank Mandiri. It contributed an underlying profit of US$7 million, 19% lower, with the impact of lower volume and the weaker Rupiah partly mitigated by higher interest income earned from the proceeds from the sale of its finance business. The Group increased its shareholding in Tunas Ridean from 38% to 44% in February 2010.

  Vietnam

29%-owned associate, Truong Hai Auto Corporation ("Thaco"), contributed an underlying profit of US$11 million. This compares with a loss in 2008 for the five months following the Group's initial investment. In 2009, the vehicle market in Vietnam grew by 9% to 119,000 units as the economy recovered, while Thaco's vehicle sales grew by 35% to 21,600 units, resulting in its market share increasing from 15% to 18%.

 

Outlook

 

After the fine result in 2009, the outlook for the Group in 2010 remains positive as the Group's businesses are continuing to trade well. The overall performance for the year, however, is dependent on the economic recovery in the region being maintained.

 

Ben Keswick

Group Managing Director

25th February 2010

 

 

 

 

 

Jardine Cycle & Carriage Limited

Consolidated Profit and Loss Account for the year ended 31st December

 

 

			2009		2008	Change
	Note		US$m		US$m	%
Revenue	3		10,640.4		11,192.2	-5
Net operating costs	2		(9,333.7)		(10,041.1)	-7
Operating profit	2		1,306.7		1,151.1	14
Financing income			54.2		63.7	-15
Financing charges			(48.4)		(54.9)	-12
Net financing income			5.8		8.8	-34
Share of associates' and joint
ventures' results after tax			274.5		270.1	2
Profit before tax			1,587.0		1,430.0	11
Tax			(393.4)		(366.6)	7
Profit after tax	3		1,193.6		1,063.4	12
Profit attributable to:
Shareholders of the Company			502.8		448.2	12
Minority interests			690.8		615.2	12
			1,193.6		1,063.4	12
			US¢		US¢
Earnings per share	5		141.36		127.15	11

 

 

 

 

Jardine Cycle & Carriage Limited

Consolidated Statement of Comprehensive Income for the year ended 31st December

 

 

	2009		2008
	US$m		US$m
Profit for the year	1,193.6		1,063.4
Revaluation of assets
- surplus arising during the year	17.2		77.5
Translation differences
- gains/(losses) arising during the year	812.3		(708.6)
Available-for-sale investments
- gains/(losses) arising during the year	48.6		(17.0)
- transfer to profit and loss	(8.4)		3.6
Cash flow hedges
- gains/(losses) arising during the year	(17.3)		7.9
Defined benefit pension plans
- actuarial losses arising during the year	(6.3)		(25.4)
Share of other comprehensive income of associates and joint
ventures, net of tax	3.5		16.4
Tax relating to components of other comprehensive income	2.5		63.7
Other comprehensive income for the year	852.1		(581.9)
Total comprehensive income for the year	2,045.7		481.5
Attributable to:
Shareholders of the Company	877.9		186.3
Minority interests	1,167.8		295.2
	2,045.7		481.5

 

 

 

Jardine Cycle & Carriage Limited

Consolidated Balance Sheet at 31st December

 

	Note		2009		2008
			US$m		US$m
Non-current assets
Intangible assets			634.7		531.2
Leasehold land use rights			414.4		347.8
Property, plant and equipment			2,140.4		1,599.2
Investment properties			23.1		17.4
Plantations			425.4		352.7
Interests in associates and joint ventures			1,715.4		1,355.6
Non-current investments			309.1		179.7
Non-current debtors			1,196.7		893.4
Deferred tax assets			69.3		57.4
			6,928.5		5,334.4
Current assets
Current investments			2.3		3.7
Stocks			895.7		921.4
Current debtors			2,222.2		1,690.3
Current tax assets			66.8		40.8
Bank balances and other liquid funds
- non-financial services companies			805.3		656.1
- financial services companies			156.2		183.5
			961.5		839.6
			4,148.5		3,495.8
Non-current assets classified as held for sale			-		0.1
			4,148.5		3,495.9
Total assets			11,077.0		8,830.3
Non-current liabilities
Non-current creditors			74.4		93.5
Provisions			41.2		30.9
Long-term borrowings	7
- non-financial services companies			417.2		400.7
- financial services companies			717.6		563.1
			1,134.8		963.8
Deferred tax liabilities			246.3		219.3
Pension liabilities			101.5		67.0
			1,598.2		1,374.5
Current liabilities
Current creditors			1,654.8		1,254.9
Provisions			34.0		24.8
Current borrowings	7
- non-financial services companies			324.6		413.2
- financial services companies			918.3		798.5
			1,242.9		1,211.7
Current tax liabilities			115.8		141.9
			3,047.5		2,633.3
Total liabilities			4,645.7		4,007.8
Net assets			6,431.3		4,822.5
Equity
Share capital	8		632.3		632.3
Revenue reserve	9		1,885.3		1,552.4
Other reserves	10		453.6		78.0
Shareholders' funds			2,971.2		2,262.7
Minority interests	11		3,460.1		2,559.8
Total equity			6,431.3		4,822.5

 

 

 

Jardine Cycle & Carriage Limited

Consolidated Statement of Changes in Equity for the year ended 31st December

 

	Attributable to shareholders of the Company
					Asset				Fair value				Attributable
	Share		Revenue		revaluation		Translation		and other				to minority		Total
	capital		reserve		reserve		reserve		reserves		Total		interests		Equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
2009
Balance at 1st January	632.3		1,552.4		397.7		(323.0)		3.3		2,262.7		2,559.8		4,822.5
Total comprehensive income	-		502.3		9.0		354.7		11.9		877.9		1,167.8		2,045.7
Dividends paid by the Company	-		(171.1)		-		-		-		(171.1)		-		(171.1)
Dividends paid to minority shareholders	-		-		-		-		-		-		(258.1)		(258.1)
Change in shareholding	-		1.7		-		-		-		1.7		(16.0)		(14.3)
Acquisition/disposal of subsidiaries	-		-		-		-		-		-		6.6		6.6
Balance at 31st December	632.3		1,885.3		406.7		31.7		15.2		2,971.2		3,460.1		6,431.3
2008
Balance at 1st January	555.2		1,272.9		329.6		(3.2)		5.2		2,159.7		2,398.2		4,557.9
Total comprehensive income	-		439.9		68.1		(319.8)		(1.9)		186.3		295.2		481.5
Issue of shares by the Company	77.1		-		-		-		-		77.1		-		77.1
Issue of shares to minority shareholders	-		-		-		-		-		-		153.8		153.8
Dividends paid by the Company	-		(159.5)		-		-		-		(159.5)		-		(159.5)
Dividends paid to minority shareholders	-		-		-		-		-		-		(257.8)		(257.8)
Acquisition/disposal of subsidiaries	-		-		-		-		-		-		(26.8)		(26.8)
Change in shareholding	-		0.2		-		-		-		0.2		(0.2)		-
Other	-		(1.1)		-		-		-		(1.1)		(2.6)		(3.7)
Balance at 31st December	632.3		1,552.4		397.7		(323.0)		3.3		2,262.7		2,559.8		4,822.5

 

Jardine Cycle & Carriage Limited

Company Balance Sheet at 31st December

 

	Note	2009		2008
		US$m		US$m
Non-current assets
Property, plant and equipment		0.5		0.5
Interests in subsidiaries		1,260.1		1,275.7
Interests in associates		146.9		100.1
Non-current investment		7.6		6.8
		1,415.1		1,383.1
Current assets
Current debtors		0.8		8.5
Bank balances and other liquid funds		1.1		4.0
		1.9		12.5
Total assets		1,417.0		1,395.6
Non-current liabilities
Deferred tax liabilities		0.4		0.3
		0.4		0.3
Current liabilities
Current creditors		30.5		73.2
Current tax liabilities		0.9		0.8
		31.4		74.0
Total liabilities		31.8		74.3
Net assets		1,385.2		1,321.3
Share capital and reserves
Share capital	8	632.3		632.3
Revenue reserve	9	492.1		463.5
Other reserves	10	260.8		225.5
Shareholders' funds		1,385.2		1,321.3
Net asset value per share		US$3.89		US$3.71

 

 

 

 

 

Jardine Cycle & Carriage Limited

Company Statement of Comprehensive Income for the year ended 31st December

 

	2009		2008
	US$m		US$m
Profit after tax	199.7		190.3
Translation difference
- gains arising during the year	34.7		1.7
Available-for-sale investment
- gains arising during the year	0.6		0.3
Other comprehensive income for the year	35.3		2.0
Total comprehensive income for the year	235.0		192.3

 

 

 

Jardine Cycle & Carriage Limited

Company Statement of Changes in Equity for the year ended 31st December

 

	Share  Capital		Revenue  Reserve		Translation Reserve		Fair value and other reserves		Total  Equity
	US$m		US$m		US$m		US$m		US$m
2009
Balance at 1st January	632.3		463.5		224.9		0.6		1,321.3
Total comprehensive income	-		199.7		34.7		0.6		235.0
Dividends paid	-		(171.1)		-		-		(171.1)
Balance at 31st December	632.3		492.1		259.6		1.2		1,385.2
2008
Balance at 1st January	555.2		432.7		223.2		0.3		1,211.4
Total comprehensive income	-		190.3		1.7		0.3		192.3
Issue of shares	77.1		-		-		-		77.1
Dividends paid	-		(159.5)		-		-		(159.5)
Balance at 31st December	632.3		463.5		224.9		0.6		1,321.3

 

 

 

 

Jardine Cycle & Carriage Limited

Consolidated Statement of Cash Flows for the year ended 31st December

 

			2009		2008
	Note		US$m		US$m
Cash flows from operating activities
Cash generated from operations	12		1,536.5		1,409.6
Interest paid			(46.1)		(55.4)
Interest received			54.3		64.4
Other finance costs paid			(3.6)		(3.1)
Income tax paid			(462.6)		(353.5)
			(458.0)		(347.6)
Net cash flows from operating activities			1,078.5		1,062.0
Cash flows from investing activities
Sale of leasehold land use rights			1.7		9.4
Sale of property, plant and equipment			15.7		56.6
Sale of investment properties			1.2		9.1
Sale of plantations			0.4		13.8
Sale of subsidiaries, net of cash disposed			(1.7)		(33.3)
Sale of shares in associates and joint ventures			0.1		4.0
Sale of investments			52.0		66.4
Purchase of intangible assets			(38.8)		(20.5)
Purchase of leasehold land use rights			(20.2)		(19.8)
Purchase of property, plant and equipment			(418.6)		(499.9)
Purchase of plantations			(77.4)		(70.5)
Purchase of subsidiaries, net of cash acquired			-		(187.2)
Purchase of shares in associates and joint ventures			(46.2)		(80.4)
Purchase of investments			(105.1)		(156.2)
Capital repayment of investments			3.9		14.3
Advances to associates			(60.0)		-
Dividends received from associates and joint ventures(net)			184.7		168.2
Net cash flows used in investing activities			(508.3)		(726.0)
Cash flows from financing activities
Proceeds from issue of shares			-		0.1
Drawdown of loans			1,745.9		2,528.6
Repayment of loans			(1,860.2)		(2,364.0)
Changes in controlling interests in subsidiaries			(14.3)		(42.3)
Investments by minority shareholders			9.7		152.7
Dividends paid to minority interests			(258.1)		(257.8)
Dividends paid by the Company			(171.1)		(82.5)
Net cash flows used in financing activities			(548.1)		(65.2)
Net change in cash and cash equivalents			22.1		270.8
Cash and cash equivalents at the beginning of the year			839.1		672.1
Effect of exchange rate changes			100.9		(103.8)
Cash and cash equivalents at the end of the year			962.1		839.1

 

 

 

Jardine Cycle & Carriage Limited

Notes

1 Basis of preparation

 

The financial statements are consistent with those set out in the 2008 audited accounts which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). There have been no changes to the accounting policies described in the 2008 audited accounts except for the adoption of the new standards, amendments and interpretations shown below:

 

IFRS 8 Operating Segments

IAS 1 (revised 2007) Presentation of Financial Statements

IAS 23 (revised 2007) Borrowing Costs

Amendments to IFRS 1 Cost of an Investment in a Subsidiary, Jointly Controlled Entity or

and IAS 27 Associate

Amendment to IFRS 2 Vesting Conditions and Cancellations

Amendments to IFRS 7 Improving Disclosures about Financial Instruments

IFRIC 13 Customer Loyalty Programmes

IFRIC 16 Hedges of a Net Investment in a Foreign Operation

Improvements to IFRSs (2008)

 

The Group also early adopted the following standards and amendments to existing standards which are relevant to its operations:

 

IFRS 3 (revised 2008) Business Combinations

Amendment to IFRS 8 Operating Segments

Amendment to IAS 27 Consolidated and Separate Financial Statements

 

The adoption of these new standards, amendments and interpretations did not have a material impact on the results of the Group.

 

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$1.4032 (2008:US$1=S$1.4390), US$1=RM3.4218 (2008:US$1=RM3.4735), US$1=IDR9,400 (2008:US$1=IDR 10,950) and US$1=VND18,479 (2008:US$1=VND17,483).

The exchange rates used for translating the results for the year are US$1=S$1.4527 (2008: US$1=S$1.4099), US$1=RM3.5238 (2008:US$1=RM3.3364), US$1=IDR10,359 (2008:US$1=IDR 9,757) and US$1=VND17,810 (2008:US$1=VND16,532).

 

 

2 Net operating costs and operating profit

 

	2009		2008	Change
	US$m		US$m	%
Cost of sales	(8,304.8)		(8,829.2)	-6
Other operating income	130.0		156.7	-17
Selling and distribution expenses	(518.1)		(565.8)	-8
Administrative expenses	(564.8)		(592.6)	-5
Other operating expenses (1)	(76.0)		(210.2)	-64
Net operating costs	(9,333.7)		(10,041.1)	-7

 

(1) Decrease mainly due to lower fair value changes of plantations

 

	2009		2008	Change
	US$m		US$m	%
Operating profit is determined after including:
Depreciation of property, plant and equipment	(346.7)		(287.1)	21
Amortisation of leasehold land use rights and intangible assets	(36.9)		(26.3)	40
Fair value changes of plantations	(63.5)		(161.9)	-61
Profit/(loss) on disposal of:
- leasehold land use rights	(1.2)		6.5	nm
- property, plant and equipment	7.8		46.0	-83
- subsidiaries	(2.4)		3.3	nm
- associates and joint ventures	-		1.1	-100
- repossessed assets	(37.6)		(50.7)	-26
- investments	8.0		(3.1)	nm
Dividend and interest income from investments	14.5		15.8	-8
(Write-down)/reversal of write-down of stocks	0.6		(15.1)	nm
(Impairment)/reversal of impairment of:
- debtors	(63.0)		(106.6)	-41
- leasehold land use rights	4.8		(5.1)	nm
Fair value changes of derivatives not qualified as hedges (1)	(9.9)		16.7	nm
Net exchange gain/(loss) (2)	14.9		(49.7)	nm

 

nm: not meaningful

 

(1) Decrease due mainly to hedging of Indonesian Rupiah against United States Dollars

(2) Increase due mainly to stronger Indonesian Rupiah against United States Dollars

 

3 Revenue and Profit after tax

 

		2009		2008	Change
		US$m		US$m	%
	Revenue:
	- 1st half	4,615.1		5,718.5	-19
	- 2nd half	6,025.3		5,473.7	10
		10,640.4		11,192.2	-5
	Profit after tax:
	- 1st half	508.1		637.3	-20
	- 2nd half	685.5		426.1	61
		1,193.6		1,063.4	12

 

4 Dividends

 

	Group and Company
	2009		2008
	US$m		US$m
Dividends paid:
- Final one-tier tax exempt dividend in respect of previous year of US¢36.00 per share (2008: in respect of 2007 of US¢32.00)	132.2		109.1
- Interim one-tier tax exempt dividend in respect of current year of US¢11.00 per share (2008: US¢14.00)	38.9		50.4
	171.1		159.5
Value of scrip dividends allotted and issued:
- Final dividend of previous financial year	-		77.0

 

The Board is recommending a final dividend of US¢47.00 per share which, together with the interim dividend, will give a total dividend for the year of US¢58.00 per share.

 

 

5 Earnings per share

		2009		2008
		US$m		US$m
Basic earnings per share
Profit attributable to shareholders		502.8		448.2
Weighted average number of ordinary shares in issue (millions)		355.7		352.5
Basic earnings per share		US¢141.36		US¢127.15
Diluted earnings per share
Profit attributable to shareholders		502.8		448.2
Weighted average number of ordinary shares in issue (millions)		355.7		352.5
Adjustment for assumed conversion of share options (millions)		- *		- *
Weighted average number of ordinary shares for diluted earnings per share (millions)		355.7		352.5
Diluted earnings per share		US¢141.36		US¢127.15
Underlying earnings per share
Underlying profit attributable to shareholders		514.8		477.2
Basic underlying earnings per share		US¢144.73		US¢135.38
Diluted underlying earnings per share		US¢144.73		US¢135.38

 

* less than 0.1 million

 

A reconciliation of the profit attributable to shareholders and underlying profit attributable to shareholders is as follows:

 

		2009		2008
		US$m		US$m
Profit attributable to shareholders		502.8		448.2
Less:
Non-trading items (net of tax and minority interests)
Fair value changes of:
- plantations		(18.8)		(47.0)
- investment properties		1.0		0.2
Impact of reduced tax rates on deferred tax on
valuation of franchise rights		-		4.9
Profit/(loss) on disposal of:
- plantation assets		-		9.3
- surplus properties		-		2.2
- subsidiaries and associates		1.0		(0.1)
- subsidiary of an associate		4.1		-
Restructuring of operations		0.7		1.5
		(12.0)		(29.0)
Underlying profit attributable to shareholders		514.8		477.2

 

The underlying profit attributable to shareholders by business is shown below:

	2009		2008	Change
	US$m		US$m	%
Astra
Motor vehicles	121.5		111.4	9
Motorcycles	70.1		82.6	-15
Other automotive	33.8		25.3	34
Financial services	88.2		76.2	16
Automotive and financial services	313.6		295.5	6
Agribusiness	64.6		95.9	-33
Heavy equipment and mining	111.1		81.3	37
Other	15.7		14.4	9
Natural resources and other	191.4		191.6	-
Corporate costs and other	(20.0)		(26.6)	-25
	485.0		460.5	5
Other motor interests
Singapore	35.7		34.6	3
Malaysia	4.5		3.5	29
Indonesia (Tunas Ridean)	7.2		8.9	-19
Vietnam	10.8		(2.9)	nm
	58.2		44.1	32
Corporate costs	(11.2)		(10.8)	4
Withholding tax on dividends from Indonesia	(17.2)		(16.6)	4
	(28.4)		(27.4)	4
Underlying profit attributable to shareholders	514.8		477.2	8

 

6 Segment information

 

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the Board for the purpose of resource allocation and performance assessment. Set out below is an analysis of the segment information:

			Other		Corporate
			motor		and other
	Astra		interests		costs		Group
	US$m		US$m		US$m		US$m
2009
Revenue	9,537.3		1,103.1		-		10,640.4
Net operating costs	(8,276.4)		(1,047.6)		(9.7)		(9,333.7)
Operating profit	1,260.9		55.5		(9.7)		1,306.7
Financing income	53.8		0.4		-		54.2
Financing charges	(46.8)		(0.8)		(0.8)		(48.4)
Net financing income/(charges)	7.0		(0.4)		(0.8)		5.8
Share of associates' and joint ventures'
results after tax	252.4		22.1		-		274.5
Profit before tax	1,520.3		77.2		(10.5)		1,587.0
Tax	(366.0)		(10.2)		(17.2)		(393.4)
Profit after tax	1,154.3		67.0		(27.7)		1,193.6
Minority interests	(686.1)		(4.7)		-		(690.8)
Profit attributable to shareholders	468.2		62.3		(27.7)		502.8
Non-trading items	16.8		(4.1)		(0.7)		12.0
Underlying profit attributable to shareholders	485.0		58.2		(28.4)		514.8
Net cash/(debt) (excluding net debt of financial services companies)	77.6		(14.8)		1.6		64.4
Total equity	6,109.4		328.3		(6.4)		6,431.3

 

2008
Revenue	9,973.6		1,218.6		-		11,192.2
Net operating costs	(8,869.2)		(1,161.7)		(10.2)		(10,041.1)
Operating profit	1,104.4		56.9		(10.2)		1,151.1
Financing income	63.0		0.6		0.1		63.7
Financing charges	(52.5)		(1.1)		(1.3)		(54.9)
Net financing income/(charges)	10.5		(0.5)		(1.2)		8.8
Share of associates' and joint ventures'
results after tax	264.0		6.1		-		270.1
Profit before tax	1,378.9		62.5		(11.4)		1,430.0
Tax	(342.1)		(8.5)		(16.0)		(366.6)
Profit after tax	1,036.8		54.0		(27.4)		1,063.4
Minority interests	(609.1)		(6.1)		-		(615.2)
Profit attributable to shareholders	427.7		47.9		(27.4)		448.2
Non-trading items	32.8		(3.8)		-		29.0
Underlying profit attributable to shareholders	460.5		44.1		(27.4)		477.2
Net cash/(debt) (excluding net debt of financial services companies)	(168.6)		6.3		4.7		(157.6)
Total equity	4,520.1		292.5		9.9		4,822.5

 

 

7 Borrowings

		Group
		2009		2008
		US$m		US$m
Long-term borrowings:
- secured		920.1		637.9
- unsecured		214.7		325.9
		1,134.8		963.8
Current borrowings:
- secured		969.9		832.4
- unsecured		273.0		379.3
		1,242.9		1,211.7
Total borrowings		2,377.7		2,175.5

 

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$1,369.9 million (31st December 2008: US$1,074.1 million).

 

 

8 Share capital

	Company
	2009		2008
	US$m		US$m
Issued and fully paid:
Balance at 1st January - 355,677,660 (2008: 349,260,506) ordinary shares	632.3		555.2
Issue of 1,000 (2008: 66,000) ordinary shares under the CCL Executives'
Share Option Scheme	-*		0.1
Issue of Nil (2008: 6,351,154) ordinary shares under the Scrip Dividend Scheme	-		77.0
Balance at 31st December - 355,678,660 (2008: 355,677,660) ordinary shares	632.3		632.3

* less than 0.1 million

 

The Company did not hold any treasury shares as at 31st December 2009 (31st December 2008: Nil).

 

The number of shares that may be issued on conversion of all outstanding options granted pursuant to the CCL Executives' Share Option Scheme amounted to 34,000 as at 31st December 2009 (31st December 2008: 35,000).

Except for those mentioned above, there were no other rights, bonus or equity issues during the financial year.

 

9 Revenue reserve

	Group				Company
	2009		2008		2009		2008
	US$m		US$m		US$m		US$m
Movements:
Balance at 1st January	1,552.4		1,272.9		463.5		432.7
Asset revaluation reserve realised on disposal of land and buildings	2.5		0.7		-		-
Defined benefit pension plans
- actuarial loss	(1.5)		(10.3)		-		-
- deferred tax	0.4		2.9		-		-
Share of associates' and joint ventures' actuarial loss on defined benefit pension plans, net of tax	(1.9)		(1.6)		-		-
Profit attributable to shareholders	502.8		448.2		199.7		190.3
Dividends paid by the Company	(171.1)		(159.5)		(171.1)		(159.5)
Change in shareholding	1.7		0.2		-		-
Other	-		(1.1)		-		-
Balance at 31st December	1,885.3		1,552.4		492.1		463.5

 

 

 

10 Other reserves

	Group				Company
	2009		2008		2009			2008
	US$m		US$m		US$m			US$m
Composition:
Asset revaluation reserve	406.7		397.7		-			-
Translation reserve	31.7		(323.0)		259.6			224.9
Fair value reserve	16.4		(3.0)		0.9			0.3
Hedging reserve	(4.8)		2.7		-			-
Share option reserve	0.3		0.3		0.3			0.3
Other reserve	3.3		3.3		-			-
Balance at 31st December	453.6		78.0		260.8			225.5
	Group				Company
	2009		2008		2009		2008
	US$m		US$m		US$m		US$m
Movements:
Asset revaluation reserve
Balance at 1st January	397.7		329.6		-		-
Asset revaluation
- revaluation surplus	8.7		33.9		-		-
- deferred tax	(1.5)		25.4		-		-
- transfer to revenue reserve on disposal of assets	(2.5)		(0.7)		-		-
Share of associates' and joint ventures' asset revaluation, net of tax	4.3		9.5		-		-
Balance at 31st December	406.7		397.7		-		-
Translation reserve
Balance at 1st January	(323.0)		(3.2)		224.9		223.2
Translation difference	354.7		(319.8)		34.7		1.7
Balance at 31st December	31.7		(323.0)		259.6		224.9
Fair value reserve
Balance at 1st January	(3.0)		2.5		0.3		-
Available-for-sale investments
- fair value changes	21.9		(6.7)		0.6		0.3
- deferred tax	(0.3)		0.4		-		-
- transfer to profit and loss	(4.0)		1.7		-		-
Share of associates' and joint ventures' fair value changes of available-for-sale investments, net of tax	1.8		(0.9)		-		-
Balance at 31st December	16.4		(3.0)		0.9		0.3
Hedging reserve
Balance at 1st January	2.7		(0.9)		-		-
Cash flow hedges					-		-
- fair value changes	(6.7)		3.3		-		-
- deferred tax	1.7		(0.8)		-		-
Share of associates' and joint ventures' fair value changes of cash flow hedges, net of tax	(2.5)		1.1		-		-
Balance at 31st December	(4.8)		2.7		-		-

Share option reserve

Balance at 1st January and 31st December	0.3		0.3		0.3		0.3
Other reserve
Balance at 1st January and 31st December	3.3		3.3		-		-

 

 

11 Minority interests

	Group
	2009		2008
	US$m		US$m
Balance at 1st January	2,559.8		2,398.2
Asset revaluation
- revaluation surplus	8.5		43.6
- deferred tax	(1.3)		32.1
Share of associates' and joint ventures' asset revaluation, net of tax	4.4		9.7
Available-for-sale investments
- fair value changes	26.7		(10.3)
- deferred tax	(0.3)		0.8
- transfer to profit and loss	(4.4)		1.9
Share of associates' and joint ventures' fair value changes of available-for-sale investments, net of tax	1.8		(0.9)
Cash flow hedges
- fair value changes	(10.6)		4.6
- deferred tax	2.6		(1.2)
Share of associates' and joint ventures' fair value changes of cash flow hedges, net of tax	(2.5)		1.1
Defined benefit pension plans
- actuarial loss	(4.8)		(15.1)
- deferred tax	1.2		4.1
Share of associates' and joint ventures' actuarial loss on defined benefit pension plans, net of tax	(1.9)		(1.6)
Translation difference	457.6		(388.8)
Profit for the year	690.8		615.2
Issue of shares	-		151.2
Dividends paid	(258.1)		(257.8)
Change in shareholding	(16.0)		(0.2)
Acquisition/disposal of subsidiaries	6.6		(26.8)
Balance at 31st December	3,460.1		2,559.8

 

 

12 Cash flows from operating activities

		2009		2008
		US$m		US$m
Profit before tax		1,587.0		1,430.0
Adjustments for:
Financing income		(54.2)		(63.7)
Financing charges		48.4		54.9
Share of associates' and joint ventures' results after tax		(274.5)		(270.1)
Depreciation of property, plant and equipment		346.7		287.1
Amortisation of leasehold land use rights and intangible assets		36.9		26.3
Fair value changes of:
- plantations		63.5		161.9
- investment properties		(2.4)		(0.5)
Impairment/(reversal of impairment) of:
- debtors		63.0		106.6
- leasehold land use rights		(4.8)		5.1
- property, plant and equipment		0.3		-
- intangible assets		0.6		0.5
(Profit)/loss on disposal of:
- leasehold land use rights		1.2		(6.5)
- property, plant and equipment		(7.8)		(46.0)
- intangible assets		0.3		-
- investment properties		0.1		(0.9)
- plantations		-		(3.6)
- subsidiaries		2.4		(3.3)
- associates and joint ventures		-		(1.1)
- repossessed assets		37.6		50.7
- investments		(8.0)		3.1
(Reversal of write-down)/write-down of stocks		(0.6)		15.1
Revaluation deficit on property, plant and equipment		1.5		2.8
Changes in provisions		17.6		21.3
Foreign exchange (gain)/loss		(9.1)		3.9
		258.7		343.6
Operating profit before working capital changes		1,845.7		1,773.6
Changes in working capital:
Stocks		54.2		(485.6)
Financing debtors (1)		(341.7)		(218.8)
Debtors (2)		(212.9)		1.8
Creditors (3)		175.6		329.7
Pensions		15.6		8.9
		(309.2)		(364.0)
Cash flows from operating activities		1,536.5		1,409.6

 

(1) Increase due to higher financing activities

(2) Increase due to higher sales activities

(3) Increase due to higher purchases, deferred income and longer credit period

 

 

13 Interested person transactions

 

Name of interested person		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$100,000)
		US$m		US$m
Three months ended 31st December 2009
Jardine Matheson Limited - management consultancy services		-		1.2
MCL Land Limited
- sale of a motor vehicle		-		0.2
Jardine OneSolution (2001) Pte Ltd
- purchase of services		-		0.1
		-		1.5
Year ended 31st December 2009
Jardine Matheson Limited
- management consultancy services		-		2.6
Cold Storage Singapore (1983) Pte Ltd
- sale of a motor vehicle		-		0.2
MCL Land Limited
- sale of a motor vehicle		-		0.2
Jardine OneSolution (2001) Pte Ltd
- purchase of computer equipment and services		-		0.2
JLT Risk Solutions Asia Pte Limited
- insurance services		-		0.1
		-		3.3

 

14 Closure of books

 

 

NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members will be closed from 5.00 pm on Friday, 14th May 2010 to Monday, 17th May 2010 for the purpose of determining shareholders' entitlement to the final dividend.

 

Duly completed transfers received by Jardine Cycle & Carriage Limited's Share Registrar, M & C Services Private Limited at 138 Robinson Road #17-00, The Corporate Office, Singapore 068906 up to 5.00 p.m. on Friday, 14th May 2010 ("Books Closure Date") will be registered before entitlements to the final dividend are determined. Shareholders whose securities accounts with The Central Depository (Pte) Limited ("CDP") are credited with shares as at the Books Closure Date will be entitled to the final dividend. The final dividend will be paid on or about Thursday, 24th June 2010. Shareholders will have the option to receive the dividend in Singapore Dollars and in the absence of any election, the dividend will be paid in US Dollars. Details on this elective will be furnished to shareholders in due course.

 

 

15 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 has occurred between 1st January 2010 and the date of this report, except that on 4th February 2010, the Company purchased an additional 5.5% stake in PT Tunas Ridean Tbk for approximately US$12.5 million, increasing its interest to 43.8%.

 

 

 

- end -

For further information, please contact:

Jardine Cycle & Carriage Limited

Ho Yeng Tat Tel: 65 64708108

 

The full text of the Financial Statements and Dividend Announcement for the year ended 31st December 2009 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, a major listed Indonesian conglomerate, and other motor interests in Southeast Asia. Together with its subsidiaries and associates, JC&C employs some 137,000 people across Indonesia, Malaysia, Singapore and Vietnam.

 

Astra is the largest independent automotive group in Southeast Asia, with additional interests in financial services, agribusiness, heavy equipment and mining, information technology and infrastructure. JC&C has directly-held subsidiaries operating in Singapore and Malaysia under the Cycle & Carriage banner, and associates, Tunas Ridean in Indonesia and Truong Hai Auto Corporation in Vietnam. The JC&C Group represents some of the world's leading motoring marques including Mercedes-Benz, Honda and Toyota.