JC&C 2014 Q1 Financial Statements

Jardine Cycle & Carriage Limited

2014 First Quarter Financial Statements and Dividend Announcement

The following announcement was issued today by the Company's 73%-owned subsidiary, Jardine Cycle & Carriage Limited.

For further information, please contact:

Jardine Matheson Limited

Neil M McNamara (852) 2843 8227

GolinHarris

Annie Leung (852) 2501 7918

30th April 2014

JARDINE CYCLE & CARRIAGE LIMITED

2014 FIRST QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

· Underlying earnings per share down 6%

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

· Improved performances from Group's other motor interests

"The outlook for the remainder of the year is expected to be challenging with Astra anticipating further competition in the car market and a subdued outlook for coal prices, while the performances of the Group's other motor interests are likely to be mixed."

Ben Keswick, Chairman

30th April 2014

The exchange rate of US$1=S$1.26 (31st December 2013: US$1=S$1.27) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.27 (31st March 2013: US$1=S$1.24) was used for translating the results for the period. The financial results for the three months ended 31st March 2014 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's underlying profit for the first quarter of the year declined as overall growth in Astra's results was reversed on consolidation by a weaker rupiah exchange rate. The Group's other motor interests showed improved results.

Performance

The Group's revenue in the first quarter declined by 10% to US$4.7 billion. Profit attributable to shareholders declined by 6% to US$218 million, and earnings per share at US¢61.34 were also 6% down.

Astra contributed US$200 million to the Group's underlying profit, 9% lower than the previous year due to the effect of the rupiah exchange rate, which was on average 18% weaker than in the first quarter of 2013. In rupiah terms, Astra's net income was 10% higher than the previous year. The underlying profit contribution from the Group's other motor interests at US$19 million was up 53%.

The Group's consolidated net debt at the end of March 2014 was US$236 million, excluding borrowings within Astra's financial services subsidiaries, compared to US$303 million at the end of 2013. Net debt within Astra's financial services subsidiaries was US$3.6 billion at the end of March, similar to the level at the end of 2013

The Board has not declared a dividend for the first quarter ended 31st March 2014 (31st March 2013: Nil)

Group Review

Astra

Astra reported a net profit equivalent to US$402 million under Indonesian accounting standards, 10% up in its reporting currency as the improved results from its agribusiness and contract mining operations were partially offset by a decline in earnings from its automotive and financial services businesses.

Automotive

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

The wholesale market for cars grew by 11% to 329,000 units. Astra's car sales rose by 12% to 173,000 units, with its market share increasing from 52% to 53%. The group launched four new models and five revamped models during the quarter.

The wholesale market for motorcycles increased by 1% to 2.0 million units. Astra Honda Motor's sales increased by 4% to 1.3 million units, with its market share increasing from 62% to 63%. Astra Honda Motor launched seven revamped models in the first quarter.

Astra Otoparts, the 80%-owned component manufacturing business, saw higher sales volumes although net income fell slightly to US$23 million, caused by reduced manufacturing margins.

Financial Services

Net income from Astra's financial services businesses declined by 5% to US$83 million. Strong growth across most of the financial services portfolio, including Federal International Finance, Permata Bank and Astra Credit Companies, 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$1.3 billion, including balances financed through joint bank financing without recourse. The amount financed through the heavy equipment-focused finance operations declined by 29% to US$80 million following a reduction in sales.

Astra's 45%-held joint venture, Permata Bank, reported net income up 3% at US$31 million.

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

Heavy Equipment and Mining

United Tractors, which is 60%-owned, reported a 12% increase in net revenue and a 40% improvement in net income to US$134 million.

In the construction machinery business, net revenue increased by 6% due to higher parts and service revenue, although sales of Komatsu heavy equipment declined by 5% to 1,211 units.

The contract mining operations of subsidiary Pamapersada Nusantara benefited from improved coal volumes on lower stripping ratios. It reported a 14% increase in net revenue as contract coal production increased 28% to 31 million tonnes, although contract overburden removal remained flat at 201 million bank cubic metres.

United Tractors' mining subsidiaries reported an increase in net revenue of 20%, with coal sales 36% higher at 1.6 million tonnes despite average coal sale prices declining by 9%. Increased fuel costs also reduced the gross profit margin. United Tractors and its subsidiaries own interests in nine coal mines with combined reserves estimated at 409 million tonnes.

Agribusiness

Astra Agro Lestari, which is 80%-held, reported net income up 120% at US$67 million. Average crude palm oil prices achieved were 38% higher at Rp 8,949/kg while crude palm oil sales decreased by 18% to 314,000 tonnes, primarily due to the commencement of operations of Astra Agro Lestari's refinery in West Sulawesi.

Infrastructure, Logistics and Others

The contribution to Astra's net income from infrastructure, logistics and others fell by 30% to US$7 million due mainly to lower income from its car rental business.

The 72.5 km Tangerang-Merak toll road operated by 79%-owned Marga Mandalasakti reported a 4% increase in traffic volume to 10 million vehicles on 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 and is expected to be completed by the end of 2014, subject to the timely 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 roads.

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, but the benefit was offset by higher operating costs, resulting in a decline in net income by 32% to US$3 million.

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$3 million, up 26%.

Group's Other Motor Interests

The Group's other motor interests contributed a profit of US$19 million, 53% up on the previous year, with improved results from all businesses other than Tunas Ridean.

The contribution from the Singapore motor operations was 25% higher due to improved unit sales and margins as well as higher contributions from after-sales and taxi sales. In Malaysia, Cycle & Carriage Bintang made a small contribution, compared to the breakeven position in 2013, following higher unit sales and a less severe pressure on margins in the premium car segment. In Indonesia, Tunas Ridean's contribution was down year-on-year in the face of competitive pressures on motor vehicle margins and lower gains on disposal of ex-rental vehicles, although this was partly offset by higher motorcycle sales and an improved result from its finance business. In Vietnam, Truong Hai Auto Corporation made a significantly higher contribution due to higher unit sales and margins following a recovery in the vehicle market. The Group's new joint venture in Myanmar incurred a small operating loss.

Outlook

The outlook for the remainder of the year is expected to be challenging with Astra anticipating further competition in the car market and a subdued outlook for coal prices, while the performances of the Group's other motor interests are likely to be mixed.

Ben Keswick

Chairman

30th April 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 three months ended 31st March 2014 to be false or misleading in any material respect.

On behalf of the Directors

Ben Keswick

Director

Hassan Abas

Director

30th April 2014

nm - not meaningful

1 Basis of preparation

The financial statements are consistent with those set out in the 2013 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 2013 audited accounts except for the adoption of the following amendments and interpretation:

The adoption of these amendments and interpretation did not have any 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$1.2609 (2013: US$1=S$1.2656), US$1=RM3.2695 (2013: US$1=RM3.2815), US$1=IDR11,404 (2013: US$1=IDR12,189) and US$1=VND21,105 (2013: US$1=VND21,110).

The exchange rates used for translating the results for the period are US$1=S$1.2681 (2013: US$1 =S$1.2396), US$1=RM3.2983 (2013: US$1=RM3.1005), US$1=IDR11,755 (2013: US$1=IDR9,695) and US$1=VND21,095 (2013: US$1=VND20,907).

2 Net operating costs and operating profit

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

The profit attributable to shareholders by business is shown below: