JC&C 2015 Third Quarter Financial Statements

To: Business Editor 4th November 2015 For immediate releaseJardine Cycle & Carriage Limited2015 Third Quarter Financial Statements and Dividend AnnouncementThe following announcement was issued today by the Company's 75%-owned subsidiary, Jardine Cycle & Carriage Limited.For further information, please contact:Jardine Matheson LimitedNeil M McNamara (852) 2843 8227Brunswick Group LimitedKarin Wong (852) 3512 5077

4th November 2015

JARDINE CYCLE & CARRIAGE LIMITED

2015 THIRD QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

· Underlying earnings per share down 14%

· Lower rupiah earnings in Astra further reduced on translation to US dollars

· Direct Motor Interests profit up 72%

"The challenging trading conditions facing Astra are set to continue, and we expect the Group's trading performance to remain little changed for the remainder of the year."

Ben Keswick, Chairman

4th November 2015

The exchange rate of US$1=S$1.43 (31st December 2014: US$1=S$1.32) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.37 (30th September 2014: US$1=S$1.26) was used for translating the results for the period.The financial results for the nine months ended 30th September 2015 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the independent auditor.

(1) A reconciliation of profit attributable to shareholders and underlying profit is shown in Note 4 of this report.

(2) The earnings per share and net asset value per share have been adjusted to reflect the effect of the rights issue completed in July 2015.

CHAIRMAN'S STATEMENT

Overview

There was a lower contribution from Astra during the period as its businesses faced reduced domestic consumption, competition in the car sector, lower commodity prices and a deterioration in the credit quality of its corporate clients. This was partly compensated for by improved results in the Group's Direct Motor Interests and contribution from the Group's Other Interests.

Performance

The Group's revenue for the nine months declined by 15% to US$11.9 billion. Underlying profit was 13% lower while underlying earnings per share were 14% lower at US$546 million and US¢147.14, respectively. Profit attributable to shareholders was US$544 million, after accounting for a small non-trading loss, 16% lower than the previous year which had benefited from a net non-trading gain of US$18 million due mainly to negative goodwill arising on the acquisition of a 50% interest in Astra Aviva Life.

Astra's contribution to the Group's underlying profit was lower at US$432 million as a 14% decline in its rupiah results was translated into a 25% fall in US dollars. The rupiah was on average 12% weaker than in the first nine months of 2014. The Group's Direct Motor Interests produced a 72% increase in underlying profit at US$102 million, while the Group's Other Interests contributed US$18 million.

The Group improved from a consolidated net debt position (excluding borrowings within Astra's financial services subsidiaries) of US$239 million at the 2014 year-end to net cash of US$156 million at the end of September 2015, due mainly to the surplus proceeds from the JC&C parent rights issue after debt repayment, alongside improved operating cash flows from Astra parent and United Tractors. Net debt within Astra's financial services subsidiaries was US$3.2 billion, compared to US$3.7 billion at the end of last year as the translation impact of the weaker rupiah largely offset the new volume financed. JC&C parent had net cash of US$101 million, compared to net debt of US$47 million at the end of 2014.

The Board has not declared a dividend for the third quarter ended 30th September 2015 (30th September 2014: Nil).

Group Review

Astra International

Indonesia has suffered from the effects of a soft global economy and weak commodity prices. Astra reported a net profit equivalent to US$898 million under Indonesian accounting standards, 17% down in its reporting currency, with reduced contributions from all its businesses other than heavy equipment and mining.

Automotive

Overall automotive demand weakened during the period due to a general slow-down in the economy. In addition, discounting in the car market caused by manufacturing overcapacity continued to have a negative impact on earnings. The group's automotive component business also made a lower contribution due to lower volumes and the weakening of the rupiah.

The wholesale market for cars fell by 18% to 765,000 units. Astra's car sales were 20% lower at 382,000 units, with its market share decreasing from 51% to 50%. The group launched 14 new models and eight revamped models during the period.

The wholesale market for motorcycles decreased by 20% to 4.8 million units. Astra Honda Motor's sales were 14% lower at 3.3 million units, with its market share increasing from 63% to 68%. Astra Honda Motor launched nine new models and six revamped models during the period.

Astra Otoparts, the group's automotive component business, saw its net income fall by 72% to US$13 million, due to lower volumes and reduced manufacturing margins brought about by the weaker rupiah.

Financial Services

Net income from the group's financial services businesses decreased 21% to US$224 million. Excluding the one-time gain from the acquisition of a 50% stake in Astra Aviva Life in May 2014, net income from the group's financial services businesses declined by 11%. Increased earnings at Federal International Finance and Toyota Astra Financial Services were offset by a decline in the contributions from its other financial services interests.

The consumer finance businesses saw a decrease in the amount financed by 4% to US$3.4 billion, including balances financed through joint bank financing without recourse. The car-focused Astra Sedaya Finance reported net income 17% lower at US$54 million, while motorcycle-focused Federal International Finance's net income was up 11% at US$79 million, benefiting from improved market share and product diversification. The amount financed through the group's heavy equipment-focused finance operations increased by 21% to US$241 million.

Astra's 45%-held joint venture, Permata Bank, reported net income 24% lower at US$70 million, with an increase in loan loss provisions. Group insurance company, Asuransi Astra Buana, recorded lower earnings following a decrease in the contribution from investment earnings.

The group's new life insurance joint venture with Aviva plc, which markets its products and services as "Astra Life powered by Aviva", acquired 14,700 individual life customers and more than 150,000 participants for its corporate employee benefits business during the period.

Heavy Equipment and Mining

United Tractors, which is 60%-owned, reported a 6% decrease in revenue, although net income rose by 17% to US$417 million with the benefit of the weaker rupiah on its income and monetary assets denominated in US dollars.

In the construction machinery business, revenue declined 10% as Komatsu heavy equipment sales fell by 40% to 1,799 units, although this was partly offset by higher parts revenue. The contract mining operations of subsidiary, Pamapersada Nusantara, reported a 7% decrease in revenue as contract coal production declined 4% to 81 million tonnes, with contract overburden removal down 3% at 593 million bank cubic metres.

United Tractors' mining subsidiaries reported coal sales 13% lower at 3.9 million tonnes, with revenue decreasing by 13%. United Tractors and its subsidiaries own interests in nine coal mines with combined reserves estimated at around 400 million tonnes. United Tractors is currently reviewing its mining production plans and the carrying value of its coal mining properties in the light of the ongoing subdued market conditions and uncertainty over the timing and extent of any recovery. If an impairment provision is required, it is expected that this will be booked in the fourth quarter.

United Tractors' newly acquired general contractor, Acset Indonusa, increased its new contracts during the period to US$229 million from US$52 million in 2014.

Agribusiness

Astra Agro Lestari, which is 80%-held, reported a 92% decline in net income to US$11 million. Average crude palm oil prices achieved were 15% lower at Rp7,221/kg compared with the same period last year and crude palm oil sales were 18% lower at 826,000 tonnes, while olein sales increased by 108% to 300,000 tonnes. The benefit of the weaker rupiah on its US dollar denominated and linked income was more than offset by the impact on its US dollar monetary liabilities.

Infrastructure, Logistics and Others

Astra's net income from infrastructure, logistics and others fell by 64% to US$7 million, mainly due to start-up losses arising on the commencement of operations of section 1 of the Kertosono-Mojokerto toll road.

The 72.5 km Tangerang-Merak toll road, operated by 79%-owned Marga Mandalasakti, reported an 8% increase in traffic volumes to 34 million vehicles. Construction continues at the wholly-owned 40.5 km Kertosono-Mojokerto toll road near Surabaya. Section 1, which is 14.7 km long, began operations in October 2014 and further stages are expected to be operational during 2016, subject to the timely completion of land acquisitions. In July 2015, Astratel acquired a 25% interest in the 73 km Semarang - Solo toll road, of which sections 1 and 2, covering 23 km, are operational. 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 197.2 km of toll roads. 

Serasi Autoraya's revenue declined by 5% and net income decreased by 50% to US$4 million, with a decline in the number of vehicles under contract at its TRAC car rental business to 26,000 units.

PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, experienced marginally lower sales volume of 117 million cubic metres.

Anandamaya Residences, the group's 60%-held luxury residential development project located in Jakarta's Central Business District, continues to achieve market leading pricing and strong buyer interest with more than 90% of the 509 units sold.

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$12 million, down 8%. Excluding the one-time gain on sale of a 51% stake in AGIT Monetise in June 2014, net income from information technology increased by 17% on higher revenues.

Direct Motor Interests

The profit from the Group's Direct Motor Interests rose 72% to US$102 million following a strong performance by Truong Hai Auto in Vietnam, which benefited from significantly higher unit sales and good margins. The contribution from the Singapore motor operations was also higher as unit sales grew following an increase in the Government vehicle quota. In Malaysia, Cycle & Carriage Bintang's earnings rose due to strong sales and improved margins, alongside dividend income from its investment in Mercedes-Benz Malaysia. In Indonesia, Tunas Ridean reported a modest profit growth, with a strong improvement in earnings from 49%-owned Mandiri Tunas Finance more than offsetting a decline in its automotive business, while its contribution to the Group fell owing to the impact on translation of the weaker rupiah.

Other Interests

The Group's Other Interests, comprising two new associates, 25%-held Siam City Cement in Thailand and 22%-held Refrigeration Electrical Engineering Corporation ("REE") in Vietnam, contributed US$18 million. Siam City Cement reported a decline in earnings owing to weaker cement demand and lower selling prices, while REE reported slightly lower earnings due mainly to a provision write-back in 2014.

Outlook

The challenging trading conditions facing Astra are set to continue, and we expect the Group's trading performance to remain little changed for the remainder of the year.

Ben Keswick

Chairman

4th November 2015

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 nine months ended 30th September 2015 to be false or misleading in any material respect.

On behalf of the Directors

Ben Keswick

Director

Hassan Abas

Director

4th November 2015

(1) The net asset value per share has been adjusted to reflect the effect of the rights issue completed in July 2015.