Jardine Cycle & Carriage : JC&C 2016 First Half Financial Statements and Dividend Announcement

Financial Statements and Related Announcement::Half Yearly Results Page 1 of 1

Financial Statements and Related Announcement: :Half Yearly Results Issuer & Securities

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For Financial Period Ended 30/06/2016

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http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement _Content&B=Announcem... 29/7/2016

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• Underlying earnings per share down 15%

• Lower rupiah earnings at Astra

• Contribution from Direct Motor Interests up 13%

"The challenges affecting Astra's businesses in the first half are likely to persist for the remainder of the year, although steady performances are expected from its consumer finance and automotive operations. Elsewhere, it is anticipated that competitive pressures will continue to affect the Group's Direct Motor Interests and Other Interests."

Ben Keswick, Chairman 29th July 2016

The exchange rate of US$1=S$1.35 (31st December 2015: US$1=S$1.41) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.38 (30th June 2015: US$1=S$1.35) was used for translating the results for the period. The financial results for the six months ended 30th June 2016 and 30th June 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.

^ The S$ equivalent is an estimate as the actual amount of the interim dividend will be determined on Books Closure Date referred to in Note 11.

The Group's underlying profit declined in the first six months of the year due to a reduced contribution from Astra. Lower earnings in Astra's financial services and heavy equipment and mining businesses were only partly offset by increases in its automotive, agribusiness, and infrastructure, logistics and other businesses. The Group's Direct Motor Interests and Other Interests produced improved contributions.

The Group's revenue for the first half declined by 6% to US$7.7 billion with lower revenue within Astra's heavy equipment and mining and agribusiness activities, while the revenue contribution from Astra's Toyota sales operations was also reduced following the introduction of a two-tiered distribution model at the beginning of the year.

Underlying profit attributable to shareholders was 8% lower at US$332 million and earnings per share were 15% lower at US¢83, the greater decline reflecting the effects of the rights issue undertaken in 2015. Profit attributable to shareholders at US$328 million, after accounting for a small non-trading loss, was 9% lower than the previous year.

Astra contributed US$249 million to the Group's underlying profit, as a 12% decline in its rupiah results was translated into a 15% fall in US dollars. The rupiah was on average 3% weaker than in the first half of the previous year. The Group's Direct Motor Interests contributed an underlying profit of US$78 million, 13% up on the previous year, while the Group's Other Interests contributed US$15 million, 29% higher.

At 30th June 2016, the Group had consolidated net cash of US$355 million, excluding borrowings within Astra's financial services subsidiaries. The US$100 million improvement over the net cash at the end of December 2015 was due largely to strong operating cashflows and lower capital expenditure. Net debt within Astra's financial services subsidiaries was US$3.4 billion at the end of June, compared to US$3.2 billion at the end of last year.

The Board has declared an interim one-tier tax exempt dividend of US¢18 per share (2015: US¢18 per share).

Astra reported a net profit equivalent to US$530 million under Indonesian accounting standards, 12% down in its reporting currency. The group's net income for the period fell, despite higher automotive profits that benefited from new model launches, as weak commodity prices adversely affected its heavy equipment, mining contracting and agribusiness operations, and a significant increase in loan-loss provisions at Permata Bank led to a lower contribution from financial services.

Automotive

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

The wholesale market for cars increased by 1% to 532,000 units. Astra's car sales were 4% higher at 273,000 units, resulting in an increase in market share from 50% to 51%. The group launched six new models and five revamped models during the period.

The wholesale market for motorcycles decreased by 7% to 3.0 million units. Astra Honda Motor's domestic sales were 1% higher at 2.2 million units, resulting in its market share increasing from 67% to 73%. Astra Honda Motor launched three new models and seven revamped models during the period.

Net income at Astra Otoparts, the group's component business, was little changed at US$11 million with increased revenue from its OEM, after-market and export segments largely offset by higher operating costs and a foreign exchange translation loss in its associated companies.

Financial Services

Net income from the group's financial services businesses decreased 40% to US$93 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, particularly Permata Bank.

The consumer finance businesses saw a 13% increase in the amount financed, which rose to US$2.7 billion, including balances financed through joint bank financing without recourse. The car-focused Astra Sedaya Finance reported net income 15% lower at US$32 million, whereas Toyota Astra Financial Services recorded net income 8% higher at US$12 million. Motorcycle- focused Federal International Finance's net income was up 22% at US$60 million, benefiting from an improved market share and product diversification.

The amount financed through the group's heavy equipment-focused finance operations decreased by 11% to US$140 million. Surya Artha Nusantara Finance, which specialises in small and medium heavy equipment financing, reported net income 46% lower at US$3 million.

Astra's 45%-held joint venture, Permata Bank, reported a net loss of US$62 million compared with a net income of US$64 million in the first half of 2015. The decline was due to a significant increase in loan-loss provisions as non-performing loans rose to 4.6% 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.

The group's general insurance company, Asuransi Astra Buana, recorded net income 17% lower at US$30 million, primarily due to reduced investment earnings.

During the first six months, the group's life insurance joint venture with Aviva plc, Astra Aviva Life, acquired more than 50,000 individual life customers and more than 100,000 participants for its corporate employee benefits programmes, compared with 28,500 and 186,000, respectively, in the whole of 2015.

Heavy Equipment and Mining

United Tractors, which is 60%-owned, reported net income 46% lower at US$138 million, which reflected lower business volumes and the impact from the stronger rupiah on translation of its US dollar monetary assets. In its construction machinery business, revenue declined 6% as Komatsu heavy equipment sales fell by 25% to 1,036 units, while parts and service revenue also declined. The contract mining operations of Pamapersada Nusantara recorded a 22% decrease in revenue. Contract coal production declined 4% to 50 million tonnes and contract overburden removal was down 9% at 339 million bank cubic metres. United Tractors' mining subsidiaries reported 58% higher coal sales at 4.5 million tonnes.

General contractor Acset Indonusa which is just over 50%-held by United Tractors, reported an increase in net income from US$0.4 million to US$2 million. It secured new contracts worth US$178 million in the first half, compared with US$228 million in 2015 as a whole. To support its business growth, Acset completed a rights issue in June raising about US$40 million.