Jardine Math.sr Regulatory News (JAR)

To: Business Editor 28th July 2023 For immediate releaseJardine Cycle & Carriage Limited 2023 Half-Year Financial Statements and Dividend Announcement The following announcement was issued today by the Company's 76.8%-owned subsidiary, Jardine Cycle & Carriage Limited.For further information, please contact:Jardine Matheson LimitedJonathan Lloyd (852) 2843 8223Brunswick Group LimitedBen Fry (65) 9017 9886

28th July 2023

JARDINE CYCLE & CARRIAGE LIMITED

2023 HALF-YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

● Underlying profit 12% higher at US$583 million

● Improved results from Astra and Direct Motor Interests

● THACO and Other Strategic Interests report lower earnings

● Interim dividend per share of US¢28, unchanged from 2022

"The Group performed well in the first half of 2023, mainly due to higher contributions from Astra and Direct Motor Interests. THACO's performance was, however, adversely affected by the challenging economic environment in Vietnam. While economic uncertainties remain, the Group expects progress to continue into the second half of the year."

Ben Keswick, Chairman

Group Results

The exchange rate of US$1=S$1.36 (31st December 2022: US$1=S$1.34) was used for translating assets and liabilities at the balance sheet date, and US$1=S$1.34 (30th June 2022: US$1=S$1.37) was used for translating the results for the period. The financial results for the six months ended 30th June 2023 and 30th June 2022 have been prepared in accordance with International Financial Reporting Standards and have not been audited or reviewed by the auditors.

* The Group uses 'underlying profit attributable to shareholders' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in Note 6 to the condensed financial statements. Management considers this to be a key performance measurement that enhances the understanding of the Group's underlying business performances.

^ Included in 'non-trading items' are unrealised gains/losses arising from the revaluation of the Group's equity investments.

nm not meaningful

CHAIRMAN'S STATEMENTOverview Jardine Cycle & Carriage ("JC&C" or "the Group") delivered a good result, compared to the same period in 2022, mainly due to higher contributions from Astra and Direct Motor Interests.Astra contributed US$543 million to the Group's underlying profit, 17% higher than the same period last year, with improved performances from most of its businesses.Direct Motor Interests contributed US$35 million, an increase of 22% compared to the same period last year, driven primarily by higher profits from the Malaysia operations and Tunas Ridean in Indonesia.THACO contributed US$15 million, 72% down from the same period last year, mainly due to lower automotive profits.Other Strategic Interests contributed US$29 million, 15% down from the same period last year. The first quarter contribution of Refrigeration Electrical Engineering Corporation ("REE") was up 16% from the prior year, offset by lower profits from Siam City Cement. Corporate costs totalled US$38 million, compared to US$57 million in the same period last year. The decrease was mainly due to lower foreign exchange losses from the translation of foreign currency loans, which more than offset an increase in net financing charges. The Group's underlying profit attributable to shareholders increased by 12% to US$583 million. After accounting for non-trading items, which mainly comprised gains from the sale and leaseback arrangement in respect of Cycle & Carriage Singapore's properties, and unrealised amounts arising from the revaluation of the Group's equity investments, the Group's profit attributable to shareholders was US$648 million, compared to US$487 million in the same period last year.The Group's consolidated net cash position, excluding the net borrowings from Astra's financial services subsidiaries, was US$776 million at the end of June 2023, compared to US$893 million at the end of 2022. Net debt within Astra's financial services subsidiaries increased from US$2.8 billion to US$3.3 billion. JC&C parent company's net debt reduced from US$1.5 billion at the end of 2022 to US$883 million at the end of June 2023, following the receipt of enhanced dividends from Astra and the proceeds from the sale and leaseback of Cycle & Carriage Singapore's properties.During the first half of the year, JC&C increased its interest in REE from 33.6% to 34.4% for US$8 million. In June, JC&C announced a used car and aftersales partnership with Carro, a leading digital used car platform. The partnership involves JC&C taking an interest in Carro and Carro will also acquire an interest in Republic Auto, JC&C's used car subsidiary in Singapore. Group Review The contributions to JC&C's underlying profit attributable to shareholders by business segment were as follows:

Astra Astra contributed US$543 million to JC&C's underlying profit, 17% higher than the same period last year. Excluding the unrealised amounts arising from the revaluation of its equity investments, Astra reported a net profit equivalent to US$1.2 billion under Indonesian accounting standards, with stronger performances from most of its businesses, particularly its automotive, financial services, heavy equipment and mining contracting operations. Automotive Net income increased by 33% to US$379 million, reflecting higher sales volumes.

● The wholesale car market increased by 7% to 506,000 units in the first half. Astra's car sales were 7% higher at 278,000 units, with its market share marginally higher at 55%. 

● The wholesale market for motorcycles increased by 43% to 3.2 million units in the first half. Astra Honda motorcycle sales were 56% higher at 2.6 million units, as the low base in the previous year was affected by production constraints caused by semiconductor supply issues. Correspondingly, Astra Honda's market share increased from 73% to 80%.

● Components business, Astra Otoparts, reported an 85% increase in net profit to US$53 million, mainly due to higher revenue from the original equipment manufacturer segment.

Financial Services Net income increased by 32% to US$255 million due to higher contributions from Astra's consumer finance businesses.

● Consumer finance businesses saw a 27% increase in the amounts financed to US$4.0 billion. The net income contribution from the car-focused finance companies increased by 36% to US$75 million, and the contribution from the motorcycle-focused financing business increased by 30% to US$135 million, mainly due to larger loan portfolios and lower loan loss provisions.

● General insurance company, Asuransi Astra Buana, reported a 9% increase in net income to US$46 million due to higher underwriting income.

Heavy Equipment, Mining, Construction and Energy Net income increased by 11% to US$459 million, mainly due to improved profits from heavy equipment sales and mining contracting which continued to benefit from elevated coal prices.

● Komatsu heavy equipment sales increased by 9% to 3,100 units, while its parts and service business revenue was also higher.

● Mining contracting operations reported an 18% increase in coal production at 59 million tonnes and a 20% increase in overburden removal volume at 524 million bank cubic metres.

● Coal mining subsidiaries reported an 11% increase in coal sales to 6.4 million tonnes, including 1.3 million tonnes of metallurgical coal.

● Agincourt Resources saw 24% lower gold sales at 110,000 oz.

● General contractor, Acset Indonusa, reported a lower net loss of US$4 million compared to a net loss of US$8 million in the same period last year.

Agribusiness Net income decreased by 55% to US$19 million, mainly due to lower crude palm oil prices, partly cushioned by higher sales. Infrastructure and Logistics Astra's infrastructure and logistics division reported a 42% increase in net profit to US$33 million, mainly due to improved traffic volumes in its toll road businesses. Astra has 396km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road. THACO THACO contributed a US$15 million profit, 72% lower compared to the same period last year. THACO's automotive profits were significantly reduced, as Vietnam's automotive market overall was impacted by weaker economic and consumer sentiments, and greater competitive pressure.

Direct Motor Interests The Group's Direct Motor Interests contributed US$35 million profit, 22% up compared to the same period last year.

● Cycle & Carriage Singapore's contribution was flat against the same period last year, mainly due to lower car sales volumes amidst a tightened COE cycle, partly offset by higher aftersales throughput volumes. Despite new car sales volumes were 13% down, overall market share increased from 19% to 20%. 

● In Indonesia, Tunas Ridean contributed US$19 million, 30% higher than the same period last year, supported by improved operating volumes across its automotive, financial services and leasing businesses.

● Cycle & Carriage Bintang in Malaysia contributed a profit of US$6 million, 91% higher than the same period last year. New car sales volumes were 21% up at strong margins, supported by the government sales tax exemption, which expired in March.

Other Strategic Interests The Group's Other Strategic Interests contributed a US$29 million profit, 15% down compared to the same period last year.

● The contribution from Siam City Cement was US$9 million, 41% lower than the previous year, as it continued to be adversely impacted by high energy costs.

● Based on its first-quarter results, REE's contribution of US$11 million was 16% higher than the previous year, mainly due to higher earnings from its water treatment and distribution businesses, and an increase in JC&C's shareholding.

● The Group's investment in Vinamilk produced a dividend income of US$9 million, similar to the previous year, with the business reporting an 8% decrease in net profit, mainly due to high raw material costs.

Corporate Costs Corporate costs were US$38 million compared to US$57 million in the same period last year, as foreign exchange losses from the translation of foreign currency loans decreased from US$35 million to US$7 million. This foreign exchange impact was, however, offset by a US$11 million increase in net financing charges.Dividend The Board has declared an interim one-tier tax-exempt dividend of US¢28 per share (2022: US¢28 per share) for the half-year ended 30th June 2023. Outlook  While economic uncertainties remain, the Group expects progress to continue into the second half of the year. Ben KeswickChairman CORPORATE PROFILE Jardine Cycle & Carriage ("JC&C" or "the Group") is the investment holding company of the Jardine Matheson Group ("Jardines") in Southeast Asia. Listed on the Mainboard of the Singapore Exchange and a constituent of the Straits Times Index, the Group is 76.8%-owned by Jardines.By investing in the region's market leaders, we aim to deliver sustainable growth to create evermore opportunities for the people and communities of Southeast Asia. Together with our subsidiaries and associates, JC&C provides over 240,000 jobs across the region.A diversified portfolio

n Astra (50.1%-owned), a prominent Indonesian group participating in automotive, financial services, heavy equipment, mining, construction & energy, agribusiness, infrastructure, IT and property.

n THACO (26.6%-owned), Vietnam's fast growing business group with market leading positions in automotive, real estate and agriculture.

n Direct Motor Interests making up an extensive dealership network through the Cycle & Carriage businesses in Singapore (100%-owned), Malaysia (97.0%-owned), and Myanmar (60%-owned), and Tunas Ridean (49.9%-owned) in Indonesia.

n Other Strategic Interests comprising Refrigeration Electrical Engineering Corporation (34.4%-owned) in Vietnam with interests in power and utilities including renewable energy, property development and office leasing, and mechanical & electrical engineering; Siam City Cement (25.5%-owned) operating in Thailand, Vietnam, Sri Lanka, Cambodia and Bangladesh; and Vinamilk (10.6%-owned), the leading dairy producer in Vietnam.

For more information on JC&C and our businesses, visit www.jcclgroup.com.Statement pursuant to Rule 705(5) of the Listing Rules of the Singapore Exchange Securities Trading Limited ("SGX-ST") 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 six months ended 30th June 2023 to be false or misleading in any material aspect.On behalf of the Board of DirectorsBen KeswickDirectorSteven PhanDirector28th July 2023

(1) Higher revenue was mainly due to higher sales from Astra's automotive, and heavy equipment and mining contracting operations, as well as Direct Motor Interests.

(2) Increase in financing charges was mainly due to higher interest cost.

(1) Fair value through other comprehensive income ("FVOCI")