JC&C 3rd Quarter Financial Results

Jardine Cycle & Carriage Limited

2011 Third Quarter Financial Statements and Dividend Announcement

The following announcement was issued today by the Company's 71%-owned subsidiary, Jardine Cycle & Carriage Limited.

1st November 2011

JARDINE CYCLE & CARRIAGE LIMITED

2011 THIRD QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

·; Underlying earnings per share up 34% to US¢217.82

·; Strong results from Astra

·; Modest improvement in Group's other motor interests

"The Group performed well in the first nine months of 2011 with Astra delivering a strong set of results. The Group's other motor business showed some earnings improvement, although challenges remain in Singapore and Vietnam. While the impact of the deteriorating global economy on the Group's operations is still uncertain, the outlook for the rest of the year remains positive."

Anthony Nightingale, Chairman

1st November 2011

The exchange rate of US$1=S$1.30 (31st December 2010: US$1=S$1.29) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.25 (30th September 2010: US$1=S$1.38) was used for translating the results for the period.

The financial results for the nine months ended 30th September 2011 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors.

* The basis for calculating underlying earnings is set out in Note 4 of this report.

CHAIRMAN'S STATEMENT

Overview

Jardine Cycle & Carriage produced good earnings growth in the nine months to 30th September 2011. Astra delivered a strong set of results with good performances across all its major business segments supported by growth in domestic demand and robust commodity prices.

Performance

The Group's revenue for the first nine months of 2011 increased by 30% to US$14.9 billion. Underlying profit grew by 34% to US$775 million, and underlying earnings per share also increased by 34% to US¢217.82.

Astra contributed US$770 million to the Group's underlying profit, a 36% increase with strong trading performances. Contribution from the Group's other motor interests rose 9% to US$43 million.

The Group had consolidated net cash of US$39 million at 30th September 2011, excluding borrowings within Astra's financial services subsidiaries, compared to the net debt of US$353 million at the end of 2010. The net debt within Astra's financial services subsidiaries was US$3.4 billion at the period end, US$1.1 billion higher than the end of 2010 due to an increase in volume financed. The parent company had net debt of US$84 million.

The Board has not declared a dividend for the nine months ended 30th September 2011 (30th September 2010: Nil).

Group Review

Astra

Astra reported a net profit under Indonesian accounting standards of Rp13.4 trillion, up 30%, equivalent to US$1.5 billion. The Indonesian economy continued to grow, supported by high commodity prices and the availability of financing at affordable interest rates, while inflation remained stable.

Automotive

The Indonesian wholesale market for motor vehicles grew by 19% to 660,000 units. Astra's motor vehicle sales rose by 16% to 362,000 units, representing a market share of 55%, compared to 56% for the same period last year. The wholesale market for motorcycles grew by 12% to 6.2 million units. Astra Honda Motor's sales improved by 24% to 3.2 million units, with its market share increasing from 47% to 52%.

Astra Otoparts, the group's 96%-owned component manufacturing business, reported a 9% decline in net income due to higher cost of sales and operating expenditure.

Financial Services

The increased contribution from Astra's consumer finance operations reflected loan book growth, a reduction in offshore funding costs and stable customer credit experience. The aggregated amount financed through Astra's automotive consumer finance operations, Federal International Finance, Astra Credit Companies and Toyota Astra Financial Services grew by 14% to US$4.3 billion, including balances financed through joint bank financing without recourse. The aggregated amount financed through Astra's heavy equipment finance operations, Surya Artha Nusantara Finance and Komatsu Astra Finance grew by 46% to US$601 million. The heavy equipment finance operations do not utilise joint bank financing facilities.

The group's insurance company, Asuransi Astra Buana, generated an increase in earnings, due to higher retail and commercial premiums.

Astra´s 45%-held joint venture, Bank Permata, reported net income of US$111 million, an increase of 23%, as loan book growth of 39% more than compensated for the lower net interest margins. 

Agribusiness

Astra Agro Lestari, which is 80%-held, reported a 51% increase in net income as average crude palm oil prices achieved were 16% higher and crude palm oil production rose 20% to 931,000 tonnes.

United Tractors, which is 60%-owned, reported a 47% improvement in net income. Strong results were seen in its Komatsu heavy equipment business which sold 6,400 units, an increase of 55%. The contract mining operations of subsidiary, Pamapersada Nusantara, achieved an increase in contract coal production of 11% to 63 million tonnes and an increase in contract overburden removal of 22% to 585 million bcm. United Tractors sold three million tonnes of coal produced from its own mines.

United Tractors and its subsidiaries own interests in eight coal mines following an increase in its stake in Asmin Bara from 30% to 60% and the acquisition of a 20% interest in Bukit Enim Energi.

Infrastructure and Logistics

Net income from infrastructure and logistics grew by 77%, due primarily to the reversal of a prior year tax provision.

PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, increased its sales volume in the first nine months of the year by 2% to 114 million cubic metres.

The 72.5 km Tangerang-Merak toll road operated by 79%-owned Marga Mandalasakti reported a 10% increase in traffic volume to 24 million vehicles on higher average tariffs. In August, the group acquired a 95% stake in the greenfield 40.5 km Kertosono-Mojokerto toll road near Surabaya at a cost of US$86 million. The overall cost of this toll road project is estimated at some US$400 million. This acquisition follows the earlier acquisition of a 40% interest in the greenfield 11.2 km Kunciran-Serpong toll road on Jakarta's outer ring road.

Serasi Autoraya´s improved profit was supported by higher vehicles under contract.

Information Technology

The group's 77%-owned Astra Graphia which is active in the area of information technology solutions and is the sole distributor of Fuji Xerox equipment in Indonesia, reported 25% higher net income.

Other Motor Interests

Jardine Cycle & Carriage's other motor interests produced a higher underlying profit. In Singapore, despite the difficult trading conditions brought about by the sharp reduction in the government quota for new vehicle sales, an improved contribution was achieved. In Indonesia, Tunas Ridean benefited from favourable market conditions with an increase in earnings from its automotive business, although this was partly offset by a lower contribution from its finance and rental activities. In Malaysia, Cycle & Carriage Bintang's earnings were in line with the previous year. In Vietnam, Truong Hai Auto Corporation was able to increase its vehicle sales, but the results were affected by higher funding costs and the weaker dong.

Outlook

The Group performed well in the first nine months of 2011 with Astra delivering a strong set of results. The Group's other motor business showed some earnings improvement, although challenges remain in Singapore and Vietnam. While the impact of the deteriorating global economy on the Group's operations is still uncertain, the outlook for the rest of the year remains positive.

Anthony Nightingale

Chairman

1st November 2011

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 2011 to be false or misleading in any material respect.

On behalf of the Directors

Anthony Nightingale

Director

Hassan Abas

Director

1st November 2011

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