JC&C 2012 Half Year Financial Statements

To: Business Editor 27th July 2012

For immediate release

www.jcclgroup.com

Jardine Cycle & Carriage Limited

2012 Half Year Financial Statements and Dividend Announcement

The following announcement was issued today by the Company's 72%-owned subsidiary, Jardine Cycle & Carriage Limited.

For further information, please contact:

27th July 2012

JARDINE CYCLE & CARRIAGE LIMITED

2012 HALF YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

·; Earnings per share up 5%

·; Strong growth in Astra partly offset by weaker rupiah

·; Overall satisfactory results from other motor operations

"The second half of 2012 is expected to be more challenging due to a weaker rupiah and the adverse impact on automotive sales in Indonesia arising from the more restrictive financing regulations introduced in June."

Ben Keswick, Chairman

27th July 2012

The exchange rate of US$1=S$1.28 (31st December 2011: US$1=S$1.30) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.26 (30th June 2011: US$1=S$1.25) was used for translating the results for the period.

The financial results for the six months ended 30th June 2012 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors.

* The S$ amount is estimated. The actual amount will be determined on the Books Closure Date referred to in Note 11.

CHAIRMAN'S STATEMENT

Overview

The Group's profit grew by 5% in the first half of 2012, with strong results from Astra and overall satisfactory growth from the Group's other motor interests.

Performance

The Group's revenue increased by 19% to US$11.2 billion in the first half of 2012. Profit attributable to shareholders grew by 5% to US$511 million and earnings per share also rose 5% to US¢143.74.

Astra's profit contribution was US$518 million, up 6%, with benefits of the good growth in most of its major businesses being partly offset by a weaker rupiah. The Group's other motor interests contributed a profit of US$31 million, 12% higher than the previous year.

The Group's consolidated net debt at the end of June 2012 was US$750 million, excluding borrowings within Astra's financial services subsidiaries, compared to the net debt of US$108 million at the end of 2011. Net debt within Astra's financial services subsidiaries was US$3.6 billion at the end of June, reflecting an increase in volume financed. Parent company net debt was US$74 million.

The Board has declared an interim one-tier tax exempt dividend of US¢18 per share (2011: US¢18 per share). The interim dividend is available in cash in US dollars or Singapore dollars.

In July 2012, the Group disposed of its entire shareholding of less than 5% in a company for approximately US$135 million, from which a non-trading gain of approximately US$56 million is expected to be recognised in the full-year results.

Group Review

Astra

Astra performed well as strong results from its car and heavy equipment businesses more than offset the lower contribution from its motorcycle and palm oil businesses. It reported a net profit equivalent to US$1,046 million under Indonesian accounting standards, 13% up on the previous year in its reporting currency.

Automotive

The contribution to Astra's results from its automotive interests was 25% higher in the first half of 2012. Astra's car sales rose by 32% to 302,000 units during the period, representing a market share of 56% compared to 55% in the first half of last year, while the Indonesian wholesale market for cars grew by 28% to 535,000 units. The wholesale market for motorcycles declined by 9% to 3.7 million units, while Astra Honda Motor's motorcycle sales improved slightly to 2.1 million units, with its market share increasing from 52% to 57%. In June 2012, new minimum down-payment regulations governing loans in the automotive sector in Indonesia became effective, which may have an adverse impact on automotive sales in the second half of the year.

Astra Otoparts, the 96%-owned component manufacturing business, reported a net income of US$57 million, an increase of 10% compared to the first half of last year. Higher sales of 17%, particularly in the original equipment manufacturer ("OEM") and replacement markets, were partly offset by higher material and labour costs that have not been passed on in full to OEM customers.

Financial Services

Astra's financial services interests produced a 4% increase in contribution to its profit. The aggregate amount financed through Astra's automotive-focused consumer finance operations grew by 10% to US$2.8 billion, including balances financed through joint bank financing without recourse. The aggregate amount financed through Astra's heavy equipment-focused finance operations grew by 32% to US$479 million. The heavy equipment-focused finance operations do not utilise joint bank financing facilities. The group's insurance company, Asuransi Astra Buana, had lower earnings due to higher commissions and claims expenses, despite strong growth in gross written premiums. Astra's 45%-held joint venture, Bank Permata, reported a slightly higher net income of US$77 million with growth in net interest income and fee-based income partly offset by higher operating costs.

Heavy Equipment and Mining

United Tractors, which is 60%-owned, reported net income 21% up at US$334 million on 19% higher revenue.

Revenue from equipment sales increased by 9% despite a slight decline in sales of Komatsu heavy equipment to 4,200 units, due to sales mix, price increases and increased sales of spare parts and after sales service. Komatsu remained the market leader with an estimated market share of 44%, down from 51% in the first half of last year, owing to strong competition arising from the supply of small equipment redirected to Indonesia from the Chinese market.

Contract coal mining subsidiary, Pamapersada Nusantara, reported an increase in revenue of 31%, due to an increase in contract coal production of 12% to 45 million tonnes and an increase in contract overburden removal of 13% to 415 million bcm.

United Tractors' mining subsidiaries reported a 29% increase in revenue, from selling 3 million tonnes of coal, an increase of 38%. Net income was adversely impacted due to a decline in average coal sale prices and increased fuel costs. United Tractors and its subsidiaries own interests in eight coal mines with combined reserves estimated at 300 to 350 million tonnes.

Agribusiness

Palm oil producer, 80%-held Astra Agro Lestari, reported net income down 25% at US$104 million. Palm oil production increased by 7% to 636,000 tonnes, while revenue increased by 7%. Average crude palm oil sale prices achieved were 2% lower and the net income was affected by higher costs of production and operating expenses.

Infrastructure and Logistics

The contribution to Astra's profit from infrastructure and logistics fell by 10% to US$34 million, as the first half of 2011 benefited from the reversal of a tax provision.  

The group's 79%-owned Marga Mandalasakti, which operates the 72.5 km Tangerang - Merak toll road, reported a 15% increase in traffic volume on higher average tariffs. The group's 95%-owned greenfield 40.5 km Kertosono - Mojokerto toll road near Surabaya, acquired in the third quarter of 2011, remains under construction and is expected to be completed in 2013, pending the timely completion of land clearance.

PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, increased its sales volume in the first half by 5% to 79 million cubic metres.

Serasi Autoraya's improved profit was supported by a 23% increase in vehicles under contract at its TRAC car rental business.

Information Technology

77%-owned Astra Graphia, which is active in the area of information technology solutions, reported a 32% increase in net income to US$8 million.

Other Motor Interests

The contribution from the Group's other motor interests grew by 12% to US$31 million. The vehicle market in Singapore fell by 5% in the first half of the year, but Singapore Motor Operations did well with an increase in profit driven by growth in Mercedes-Benz passenger car sales as well as used car sales.

In Malaysia, Cycle & Carriage Bintang reported a lower profit owing to intense competition in the premium vehicle segment. Tunas Ridean's contribution rose with higher earnings from its automotive, vehicle rental and finance businesses in Indonesia. The motor vehicle market in Vietnam contracted by some 40% due to the weak economy, while Truong Hai Auto Corporation's contribution was sharply reduced following a 28% decline in unit sales and higher interest expenses.

Outlook

The second half of 2012 is expected to be more challenging due to a weaker rupiah and the adverse impact on automotive sales in Indonesia arising from the more restrictive financing regulations introduced in June.

Ben Keswick

Chairman

27th July 2012

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 2012 to be false or misleading in any material respect.

On behalf of the Directors

Ben Keswick

Director

Hassan Abas

Director

27th July 2012