JC&C 2016 Third Quarter Financial Statements

To: Business Editor 8th November 2016

For immediate release

Jardine Cycle & Carriage Limited

2016 Third Quarter Financial Statements and Dividend Announcement

The following announcement was issued today by the Company's 75%-owned subsidiary, Jardine Cycle & Carriage Limited.

For further information, please contact:

Jardine Matheson Limited

Neil M McNamara (852) 2843 8227

Brunswick Group Limited

Karin Wong (852) 3512 5077

8th November 2016

JARDINE CYCLE & CARRIAGE LIMITED

2016 THIRD QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

· Underlying earnings per share 10% lower

· Astra's contribution down 7%

· Improved contributions from Direct Motor Interests and Other Interests

"The current trading conditions are likely to be little changed for the remainder of the year. Astra's automotive businesses are expected to continue to produce improved performances, with some progress in its agribusiness and a modest recovery in its heavy equipment and mining operations, although concerns remain over the level of loan-loss provisions at Permata Bank. Steady contributions should be seen from the Group's Direct Motor Interests and Other Interests."

Ben Keswick, Chairman

8th November 2016

The exchange rate of US$1=S$1.37 (31st December 2015: US$1=S$1.41) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.37 (30th September 2015: US$1=S$1.37) was used for translating the results for the period. The financial results for the nine months ended 30th September 2016 and 30th September 2015 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors.

✝ The accounts have been restated due to a change in accounting policy upon adoption of amendments to IAS 16 'Property, Plant and Equipment' and IAS 41 'Agriculture', as set out in note 1 to the financial statements.

CHAIRMAN'S STATEMENT

Overview

The Group's underlying profit in the first nine months of the year was lower due to reduced contributions from Astra's financial services, heavy equipment and mining businesses, which were only partly offset by improvements in most of its other businesses. The Group's Direct Motor Interests and Other Interests reported earnings growth.

Performance

The Group's revenue for the nine months declined by 3% to US$11.6 billion. Underlying profit attributable to shareholders was 4% lower at US$518 million. Underlying earnings per share were 10% lower at US¢131, the greater decline reflecting the effects of the rights issue undertaken in 2015. Profit attributable to shareholders was US$514 million, 5% lower than the previous year after accounting for a small non-trading loss on dilution of the Group's interest in Truong Hai Auto Corporation.

Astra's contribution to the Group's underlying profit of US$399 million was 7% down, with the average rupiah exchange rate relatively flat compared with the first nine months of the previous year. The Group's Direct Motor Interests contributed an underlying profit up 11% at US$113 million, while the contribution from Group's Other Interests was 20% higher at US$22 million.

The Group had consolidated net cash, excluding borrowings within Astra's financial services subsidiaries, of US$644 million at the end of September. The improvement over the net cash at the end of December 2015 of US$255 million was due largely to strong operating cashflows. Net debt within Astra's financial services subsidiaries of US$3.2 billion at the end of September was unchanged from the end of last year. JC&C parent company's net cash was US$127 million, compared to US$136 million at the end of 2015.

The Board has not declared a dividend for the third quarter ended 30th September 2016 (September 2015: Nil).

Group Review

Astra

Astra reported a net profit equivalent to US$846 million under Indonesian accounting standards, 6% down in local currency terms. Higher automotive profits were offset by weak coal prices that adversely affected Astra's heavy equipment and mining contracting operations, and a significant increase in loan-loss provisions at Permata Bank that led to a lower contribution from financial services.

Automotive

The group's overall automotive sales improved during the nine months largely due to new model introductions, which also had a positive effect on margins.

The wholesale market for cars increased by 2% to 783,000 units. Astra's car sales were 10% higher at 422,000 units, resulting in an increase in market share from 50% to 54%. The group launched ten new models and seven revamped models during the period.

The wholesale market for motorcycles decreased by 10% to 4.4 million units. Astra Honda Motor's domestic sales were only 3% lower at 3.2 million units. Its market share increased from 68% to 73%, supported by the launch of six new models and eight revamped models during the period.

Net income at Astra Otoparts, the group's component business, increased 59% to US$21 million with higher revenue from its OEM, after-market and export segments.

Financial Services 

Net income from the group's financial services businesses declined 31% to US$156 million. Higher earnings at Federal International Finance and Toyota Astra Financial Services were more than offset by a decline in the contribution from the group's other financial services businesses, mainly Permata Bank which recorded a net loss following a significant increase in loan-loss provisions.

The consumer finance businesses saw an 18% increase in the amount financed, which rose to US$4.0 billion including balances financed through joint bank financing without recourse. The car-focused Astra Sedaya Finance reported net income 10% lower at US$49 million due to lower revenue mainly caused by a reduction in used car financing, whereas Toyota Astra Financial Services recorded net income 11% higher at US$19 million. Motorcycle-focused Federal International Finance's net income was up 21% at US$96 million, benefiting from an improved market share and loan product diversification.

The amount financed through the group's heavy equipment-focused finance operations increased by 4% to US$251 million. Surya Artha Nusantara Finance, which specialises in small and medium heavy equipment financing, reported net income 43% lower at US$5 million.

Astra's 45%-held joint venture, Permata Bank, reported a net loss of US$93 million during the first nine months compared with a net income of US$70 million in the same period last year. The decline was due to a significant increase in loan-loss provisions as non-performing loans rose to 4.9% from 2.7% at the end of 2015. In order to strengthen its capital base, the bank completed a rights issue in June which raised some US$400 million, with Astra subscribing for its share.

Net income at Asuransi Astra Buana, the group's general insurance company, was slightly lower at US$52 million, primarily due to reduced underwriting income.

During the first nine months, the group's life insurance joint venture with Aviva plc, Astra Aviva Life, acquired more than 97,000 individual life customers and more than 121,000 participants for its corporate employee benefits programmes, compared with 28,500 and 186,000, respectively, in the whole of 2015.

Heavy Equipment and Mining

The group's net income from its heavy equipment and mining businesses decreased by 43% to US$142 million.

United Tractors, which is 60%-owned, reported net income 44% lower at US$235 million, due to lower heavy equipment and mining contracting revenue, caused largely by low coal prices. There was also a negative impact of the stronger rupiah on translation of its US dollar monetary assets, whereas the previous year saw a positive impact on translation. In its construction machinery business, Komatsu heavy equipment sales fell by 12% to 1,588 units, while parts and service revenue also declined. The mining contracting operations of Pamapersada Nusantara recorded a 3% reduction in coal production to 79 million tonnes and 12% lower overburden removal at 524 million bank cubic metres. United Tractors' mining subsidiaries reported 46% higher coal sales at 6 million tonnes.

General contractor Acset Indonusa, which is just over 50%-owned by United Tractors, reported net income of US$3 million in the first nine months, compared with US$1 million in the same period in 2015. Acset secured new contracts worth US$188 million during the period, compared with US$228 million in the whole of 2015. To support its business growth, Acset completed a rights issue in June raising about US$40 million.

Agribusiness

Astra Agro Lestari, which is 80%-owned, reported net income of US$86 million, up from US$11 million due to the benefit of a stronger rupiah on translation of its US dollar monetary liabilities. Excluding the foreign exchange translation gain the results were flat as higher prices offset the impact of reduced sales. Average crude palm oil prices were up 5% at Rp7,588/kg compared with the prior year while crude palm oil sales were 12% lower at 730,000 tonnes. Olein sales were 23% lower at 231,000 tonnes. To strengthen its balance sheet, Astra Agro Lestari completed a US$300 million rights issue in June.

Infrastructure and Logistics

Net income from infrastructure and logistics increased significantly to US$16 million, mainly due to higher earnings from toll roads, used vehicles and logistics businesses.

The 72.5km Tangerang-Merak toll road, operated by 79%-owned Marga Mandalasakti, achieved a 3% increase in traffic volumes to 35 million vehicles. Construction continues at the wholly-owned 40.5km Jombang-Mojokerto toll road, where 14.7km is already operational. 22.8km of the 72.6km Semarang-Solo toll road, in which the group has a 25% interest is now operational. Taken together with its 40% interest in the 11.2km Kunciran-Serpong toll road and a 25% interest in the 30.0km Serpong-Balaraja toll road, both of which are greenfield, the group is interested in 227km of toll roads.

PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, experienced a 3% improvement in sales volume to 120 million cubic metres.

Serasi Autoraya's net income increased by 43% to US$5 million. Higher used vehicle sales and logistics volumes outweighed the effect of a 6% decline in contracted vehicles in its car leasing and rental business.

Information Technology

Net income from information technology was 15% lower at US$8 million. Astra Graphia, which is 77%-owned, reported a 15% decline in net income to US$10 million, despite an increase in revenue, mainly due to lower net margins.

Property

Astra recognised net income from its new property division of US$6 million under Indonesian accounting standards. Construction continues at the 92%-sold Anandamaya Residences, the group's 60%-owned luxury residential development project located in Jakarta's Central Business District which, together with its adjacent grade A office tower, Menara Astra, are on schedule for completion in 2018.

Direct Motor Interests

The Group's Direct Motor Interests contributed a profit of US$113 million for the period, up 11% on the previous year.

In Vietnam, Truong Hai Auto Corporation's profit was 8% higher in local currency terms as it benefited from a 48% increase in unit sales, although its contribution was reduced slightly due to the dilution of the Group's interest in the company. The contribution from the Singapore Motor Operations rose on significantly higher new passenger car sales, together with improved sales of used cars and parts. In Malaysia, Cycle & Carriage Bintang's contribution was down as an increase in unit sales was offset by the lower margins following changes in the sales mix. In Indonesia, Tunas Ridean did well due to enhanced profits from car sales, car rental and its 49%-owned associate, Mandiri Tunas Finance, partly offset by a lower contribution from its motorcycle business.

Other Interests

The Group's Other Interests comprising 24.9%-held Siam City Cement Corporation ("SCCC") in Thailand and 23%-held Refrigeration Electrical Engineering Corporation ("REE") in Vietnam, contributed US$22 million for the period, an increase of 20% over the previous year. This was due mainly to the incorporation of nine months' results for both investments this year, compared to six months' results in 2015 as REE had yet to announce its nine months results when the Group issued its report for the period and the acquisition of the interest in SCCC had only taken place in April of that year.

SCCC reported a profit equivalent to US$86 million for the first nine months, a reduction of 16% in local currency terms that reflected lower domestic cement prices and a decline in sales volumes. REE announced a profit equivalent to US$22 million for the nine months, 17% down in local currency terms due largely to lower contributions from its power business.

Outlook

The current trading conditions are likely to be little changed for the remainder of the year. Astra's automotive businesses are expected to continue to produce improved performances, with some progress in its agribusiness and a modest recovery in its heavy equipment and mining operations, although concerns remain over the level of loan-loss provisions at Permata Bank. Steady contributions should be seen from the Group's Direct Motor Interests and Other Interests.

Ben Keswick

Chairman

8th November 2016

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 2016 to be false or misleading in any material respect.

On behalf of the Directors

Ben Keswick

Director

Hassan Abas

Director

8th November 2016

Attributable to shareholders of the Company

Attributable to shareholders of the Company

For the three months ended 30th September 2016

For the nine months ended 30th September 2016