JDS.L Regulatory News (JDS)

28 Feb 2008 10:46

Jardine Strategic Hldgs Ld28 February 2008 To: Business Editor 28th February 2008 For immediate release PT Astra International Tbk2007 Full Year Financial Statements The following announcement was issued today by the Company's 65%-ownedsubsidiary, Jardine Cycle & Carriage Limited, which holds 50.1% of PT AstraInternational Tbk. For further information, please contact: Jardine Matheson LimitedNeil M McNamara (852) 2843 8227 GolinHarrisKennes Young (852) 2501 7987 28th February 2008 PT ASTRA INTERNATIONAL TBK2007 FULL YEAR FINANCIAL STATEMENTS Highlights • Excellent profit growth in most of the Group's businesses • Earnings per share increased 76% to Rp1,610 • Proposed full year dividend of Rp644, up 46% "2007 ended on a strong note, with Astra achieving record earnings. The overalloutlook for 2008 is positive, although competitive challenges remain and theimpact of high oil prices and food price inflation could adversely affectconsumer demand." Michael D. Ruslim President Director 28th February 2008 Group Results Year to 31 December 2007 2006 Change Rp bn Rp bn %Net revenue 70,183 55,709 26Operating income 8,501 4,243 100 Net income 6,519 3,712 76 Rp RpNet earnings per share 1,610 917 76 As at 31 As at 31 December 2007 December 2006 Change Rp bn Rp bn %Shareholders' funds 26,963 22,376 20 Rp RpNet asset value per share 6,660 5,527 20 The financial results for the year ended 31 December 2007 and 31 December 2006have been prepared in accordance with accounting principles generally acceptedin Indonesia and have been audited in accordance with auditing standardsestablished by the Indonesian Institute of Certified Public Accountants. PRESIDENT DIRECTOR'S STATEMENT Overview The Indonesian economy grew strongly in 2007, with GDP increasing by 6.3%,supported by improved consumer sentiment in line with the steady reduction indomestic interest rates, stability in the currency and moderate inflation at6.6%. Performance The Group's revenue for the year ended 31 December 2007 rose by 26% to Rp70trillion. Net income grew by 76% to a record Rp6.5 trillion, while earnings pershare increased to Rp1,610. Automotive Operating income from the Group's automotive businesses, excluding associatesand joint ventures, was Rp1,718 billion, double that of the previous year. TheGroup's share of results from its automotive associates and joint ventures wasRp1,496 billion, 21% higher than the previous year. The wholesale market for motor cars grew by 36% to 434 thousand units. Astra'ssales increased at a reduced rate of 28% to 223 thousand units, leading to adecline in market share from 55% to 52%, reflecting the more conventional marketconditions in 2007. During the year, Astra launched three new models and sixrevamped models that have all been well received. The wholesale market for motorcycles grew by 6% to 4.7 million units. In theface of keen competition, Astra Honda Motor's sales were 9% lower than last yearat 2.1 million units and, its market share declined from 53% to 46%. Astra HondaMotor launched two new models and three revamped models. It has alsoreengineered its marketing strategy, helping to stabilise its market position,but competitive pressures will remain significant. Overall, improvements inmargins and a more stable retail share have enabled the Group to achieve agrowth in earnings from the sector in 2007. The net income of PT Astra Otoparts Tbk, which is 86.7% owned, increasedstrongly by 61% to Rp455 billion, benefiting from the recovery in the domesticautomotive market and, to a lesser extent, growth in export markets. Non-Automotive Operating income from the Group's non-automotive businesses, comprising mainlyfinancial services, agribusiness and heavy equipment, rose by 100% to Rp6.8trillion. The Group's financial services activities also benefited from the growth in theautomotive market. The volume financed by Federal International Finance andAstra Credit Companies grew by 11% to Rp20.7 trillion. Despite this increase involume, the consumer finance loan book was 12% lower at Rp15.6 trillion due to achange in mix of funding towards joint financing without recourse. PT Bank Permata Tbk, a 44.5%-held associate, saw net income grow by 60% to Rp499billion, due to improvements in net interest margins, growth of 11% in the loanbook and profits on sale of marketable securities. The bank also reduced itsrecurring operating expenses with a voluntary redundancy exercise in the firsthalf of the year. The net income of PT Astra Agro Lestari Tbk, which is 79.7% owned, was Rp1,973billion, an increase of 151% over 2006. Palm oil production at 921 thousandtonnes was relatively flat following low rainfall conditions that adverselyaffected output at the start of the year. However, a 69% increase in the crudepalm oil prices achieved boosted revenues and profits. During the year, thecompany increased its planted area by 19 thousand hectares, bringing the totalarea to 235 thousand hectares by the end of 2007. PT United Tractors Tbk, which is 58.5% owned, produced net income of Rp1,493billion, up 60%. Sales of Komatsu heavy equipment increased by 54% to 3,454units, due to strong demand for heavy equipment. The Company's miningsubsidiary, PT Pamapersada Nusantara, overcame setbacks caused by adverseweather and operational interruptions in the earlier part of the year to achievea 28% increase in coal extracted and a 4% increase in overburden removed. TheUnited Tractors goup also returned to coal mine ownership through acquisitionsby Pama in early 2007 and by the recent acquisition of 70% effective interest inTuah Turangga Agung by United Tractors in early 2008. The Group's information technology business and infrastructure investments areperforming satisfactorily. 30%-held water distributor, PAM Lyonnaise Jaya,maintained sales of water of 130 million cubic metres while toll road operator,Marga Mandala Sakti in which Astra has a 34% shareholding, handled a 5% increasein traffic volumes. Astra is continuing to review further infrastructureinvestments. Group The Group's net asset value grew by 20% from 31 December 2006 to Rp27 trillion,and the net asset value per share to Rp6,660. The Group's net debt as at the end of 2007, excluding debt within the financialservices activities, was Rp1.7 trillion, down from Rp4.8 trillion as at 31December 2006, with the net debt to equity ratio reducing from 22% to 6%.Including financial services activities, the Group's net debt as at 31 December2007 was Rp13.5 trillion, compared to Rp18.4 trillion at the end of 2006. Dividend An interim dividend of Rp160 per share (2006: Rp150 per share) was paid on 15November 2007. A final dividend of Rp484 per share will be proposed toshareholders at the Annual General Meeting in May 2008, bringing the totaldividend for the year, if approved, to Rp644 per share (2006: Rp440 per share),up 46%. Prospects The overall outlook for 2008 is positive, although competitive challenges remainand the impact of high oil prices and food price inflation could adverselyaffect consumer demand. Michael D. RuslimPresident Director28th February 2008 -end- For further information, please contact: PT Astra International TbkAminuddin, Corporate SecretaryTel: 62 - 21 - 6531 0418 This information is provided by RNS The company news service from the London Stock Exchange