JC&C 2013 First Quarter Financial Statements

Jardine Cycle & Carriage Limited

2013 First Quarter Financial Statements and Dividend Announcement

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

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26th April 2013

JARDINE CYCLE & CARRIAGE LIMITED

2013 FIRST QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

·; Earnings per share down 13%

·; Mixed results within Astra

·; Challenges in other motor interests

"While Astra's operations are facing a number of challenges in the coming months, they should continue to benefit from the continuing strength of the Indonesian economy. The trading conditions are expected to remain difficult for the Group's other motor interests."

Ben Keswick, Chairman

26th April 2013

* The comparative financial statements have been restated arising from the adoption of IAS 19 (amended 2011) Employee Benefits in 2013 (Note 1).

The exchange rate of US$1=S$1.24 (31st December 2012: US$1=S$1.22) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.24 (31st March 2012: US$1=S$1.25) was used for translating the results for the period. The financial results for the three months ended 31st March 2013 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors.

CHAIRMAN'S STATEMENT

Overview

The Group experienced a moderate decline in earnings in the first quarter as the results from its businesses were mixed and Astra's contribution was affected by a weaker rupiah.

Performance

In the first quarter of 2013, the Group's revenue declined by 6% to US$5.2 billion. Profit attributable to shareholders decreased by 13% to US$231 million and earnings per share were also 13% down at US¢64.91. There were no non-trading items during the period.

Astra's contribution of US$220 million was 13% lower than the previous year. Improvements were seen in the financial services and mining contracting businesses, but these were offset by lower earnings in its automotive, heavy equipment and agribusiness operations. The Group's other motor interests produced a profit of US$12 million, 21% down year on year.

The Group's consolidated net debt at the end of March 2013 was US$594 million, excluding borrowings within Astra's financial services subsidiaries, compared to US$867 million at the end of 2012. Net debt within Astra's financial services subsidiaries was US$3.8 billion at the end of March 2013, similar to the level at the end of 2012.

The Board has not declared a dividend for the first quarter ended 31st March 2013 (31st March 2012: Nil).

Group Review

Astra

Astra reported a net profit equivalent to US$445 million under Indonesian accounting standards, 7% down in its reporting currency.

Automotive

Automotive demand in Indonesia remained favourable during the first quarter, benefiting from rising incomes and affordable interest rates. Nevertheless, increased competition following the introduction of additional domestic capacity as well as higher labour costs have led to a decline in earnings contribution from this segment. These conditions have continued into the second quarter.

New minimum down-payment requirements in automotive Shariah-financing have so far had little effect on sales, but may have some impact on the motorcycle business going forward.

The wholesale market for motor cars grew by 18% to 296,000 units during the period. Astra's car sales rose by 7% to 155,000 units, leading to a reduced market share of 52%. Astra Daihatsu Motor completed a new plant in Karawang in January with a total production capacity of 120,000 units per year, bringing the full capacity up to 460,000 units per annum.

The wholesale market for motorcycles increased by 2% to 2.0 million units, and Astra Honda Motor's sales rose 14% to 1.2 million units, with its market share increasing from 55% to 62%.

Astra Otoparts, the Group's 96%-owned components manufacturing business, reported net income of US$28 million, an increase of 2%. An 11% increase in revenue was offset by higher labour costs.

Financial Services

The amount financed through Astra's automotive-focused consumer finance operations, Federal International Finance, Astra Credit Companies and Toyota Astra Financial Services, grew by 6% to US$1.4 billion, including balances financed through joint bank financing without recourse. In the heavy equipment sector, the amount financed through Surya Artha Nusantara Finance and Komatsu Astra Finance declined by 40% to US$136 million.

Astra's 45%-held joint venture, Bank Permata, reported net income of US$37 million, an increase of 7%. There was a strong increase in net interest income following loan growth of 36%, partly offset by higher operating costs.

Group insurance company, Asuransi Astra Buana, recorded improved earnings with growth in gross written premiums more than compensating for higher reinsurance and claims expenses.

Heavy Equipment and Mining

United Tractors, which is 60%-owned, reported net income of US$116 million, 26% down, while net revenue declined 17%.

In its construction machinery business, net revenue fell by 42% as sales of Komatsu heavy equipment fell 42% to 1,300 units, following a reduction in demand in the mining sector, particularly for larger units, although compared to the last quarter of 2012, there was a 70% increase in units sold. The operations of coal mining contracting subsidiary, Pamapersada Nusantara, benefited from increased mine site capacity and better weather conditions. It reported a 19% improvement in net revenue as contract coal production increased 12% to 24 million tonnes and contract overburden removal rose 3% to 199 million bcm.

United Tractors' mining subsidiaries reported a decrease in net revenue of 36% as coal sales fell 23% to 1.2 million tonnes. A decline in coal prices and increased fuel costs reduced gross profit margins.

Agribusiness

Astra Agro Lestari, which is 80%-held, reported net income of US$37 million. Palm oil production rose 22% to 352,000 tonnes, leading to a 6% increase in revenue to US$281 million despite the average crude palm oil price achieved being 16% lower. Net income declined, however, due to higher production costs and operating expenses.

Infrastructure and Logistics

The contribution to Astra's net income from infrastructure and logistics declined by 19% to US$13 million.

The 72.5 km Tangerang-Merak toll road operated by 79%-owned Marga Mandalasakti reported a 10% increase in traffic volumes to 10 million vehicles. PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, reported a decrease in sales volume by 3% to 37 million cubic metres. Serasi Autoraya's improved revenue, supported by a 6% increase in vehicles under contract at its TRAC car rental business to over 31,000 units, was offset by higher depreciation and operating costs, resulting in a decline in earnings compared to the first quarter of 2012.

Information Technology

Astra Graphia, 77%-owned, which is active in the area of information technology solutions and is the sole distributor of Fuji Xerox equipment in Indonesia, reported net income of US$3 million.

Other motor interests

The Group's other motor interests reported profit of US$12 million, 21% down on the previous year. In Singapore, passenger car unit sales fell due to a decline in the quota for certificates of entitlement and the impact of restrictions on vehicle financing imposed by the Government. In Malaysia, Cycle & Carriage Bintang's results were breakeven with intense competition in the premium car segment and continued heavy discounting which eroded margins. In Indonesia, Tunas Ridean's lower contribution was due to lower margins, a reduction in motorcycle sales and higher wage costs in the automotive operations, partly offset by higher profit from its finance business. In Vietnam, Truong Hai Auto Corporation's lower contribution was due to higher operating expenses and finance costs more than offsetting improved margins.

Outlook

While Astra's operations are facing a number of challenges in the coming months, they should continue to benefit from the continuing strength of the Indonesian economy. The trading conditions are expected to remain difficult for the Group's other motor interests.

Ben Keswick

Chairman

26th April 2013

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 three months ended 31st March 2013 to be false or misleading in any material respect.

On behalf of the Directors

Ben Keswick

Director

Hassan Abas

Director

26th April 2013

1 Basis of preparation

The financial statements are consistent with those set out in the 2012 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 2012 audited accounts except for the adoption of the following standards, amendments and interpretations:

The adoption of these standards, amendments and interpretations did not have any impact on the results of the Group except for the adoption of IAS 19 (amended 2011). IAS 19 (amended 2011) requires the assumed return on plan assets recognised in the profit and loss to be the same as the rate used to discount the defined benefit obligation. It also requires actuarial gains and losses to be recognised immediately in other comprehensive income and past service costs immediately in profit or loss. The adoption of IAS 19 (amended 2011) has been accounted for retrospectively and the comparative financial statements have been restated. The effect of the adoption of IAS 19 (amended 2011) does not have a significant 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$1.2436 (2012: US$1=S$1.2226), US$1=RM3.1030 (2012: US$1=RM3.0591), US$1=IDR9,719 (2012: US$1=IDR9,670) and US$1=VND20,935 (2012: US$1=VND20,830).

The exchange rates used for translating the results for the period are US$1=S$1.2396 (2012: US$1 =S$1.2520), US$1=RM3.1005 (2012: US$1=RM3.0358), US$1=IDR9,695 (2012: US$1=IDR9,088) and US$1=VND20,907 (2012: US$1=VND20,887).

2 Net operating costs and operating profit

(1) Increase mainly due to higher income from investments and vehicle registration

(2) Increase mainly due to interest income from additional investments

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

* less than 0.1 million

The profit attributable to shareholders by business is shown below: