27 Feb 2009 09:24
| To: Business Editor | 27th February 2009 |
| For immediate release |
PT Astra International Tbk
2008 Full Year Financial Statements
The following announcement was issued today by the Company's 68%-owned subsidiary, Jardine Cycle & Carriage Limited, which holds 50.1% of PT Astra International Tbk.
| For further information, please contact: | |
| Jardine Matheson Limited | (852) 2843 8227 |
| Neil M McNamara | |
| Golin Harris | (852) 2501 7987 |
| Kennes Young |
27th February 2009
PT ASTRA INTERNATIONAL TBK
2008 FULL YEAR FINANCIAL STATEMENTS
Highlights
| Excellent contributions from all major businesses |
| Earnings per share up 41% to Rp2,270 |
| Business environment deteriorates in final quarter |
| Palm oil prices decline sharply from recent highs |
| 35% increase in full-year dividends proposed |
"The Group performed exceptionally well in 2008 despite more difficult market conditions developing in the last quarter. The economic downturn has made the outlook for 2009 challenging as businesses face tight liquidity and reduced consumer demand, while there has also been a sharp decline in commodity prices. Despite this, the Group remains well capitalised and is in a strong position to take advantage of opportunities as they arise."
Michael D. Ruslim
President Director
27th February 2009
Group Results
| Year ended 31st December | |||
|
| 2008 Rp bn | 2007 Rp bn | Change % |
| Net revenue | 97,064 | 70,183 | 38 |
| Operating income | 11,876 | 8,501 | 40 |
| Net income | 9,191 | 6,519 | 41 |
| Rp | Rp |
| |
| Net earnings per share | 2,270 | 1,610 | 41 |
|
| As at 31st December 2008 Rp bn | As at 31st December 2007 Rp bn | Change % |
| Shareholders' funds | 33,080 | 26,963 | 23 |
| Rp | Rp | ||
| Net asset value per share | 8,171 | 6,660 | 23 |
The financial results for the year ended 31st December 2008 and 31st December 2007 have been prepared in accordance with accounting principles generally accepted in Indonesia and have been audited in accordance with auditing standards established by the Indonesian Institute of Certified Public Accountants.
PRESIDENT DIRECTOR'S STATEMENT
Overview
Economic conditions in Indonesia were relatively strong in the first nine months of 2008, but during the last quarter the impact from the global economic downturn was felt in all sectors. Nevertheless, the Group ended the year with an excellent result with fine contributions from all its major businesses.
Performance
The Indonesian economy grew by 6.1% in 2008 and Astra benefited from strong consumer demand and high crude palm oil prices for most of the year. The Group's revenue for the year ended 31st December 2008 increased by 38% to Rp97.1 trillion. Net income grew by 41% to Rp9.2 trillion, while earnings per share also rose to Rp2,270.
The Group's net asset value grew by 23% from Rp27 trillion at the end of 2007 to Rp33.1 trillion at 31st December 2008, representing a net asset value per share of Rp8,171.
Astra's financial position benefited from strong operating cashflows, a substantial dividend received from an associate and proceeds from a rights issue by United Tractors, although this was largely offset by the cost of acquisitions and investment in shares in Group companies. At 31st December 2008, the Group had net debt of Rp1.8 trillion (excluding debt within its financial services activities) compared to net debt of Rp1.7 trillion at the end of 2007. This represents a net debt to shareholders' funds ratio of 6% at the end of 2008, unchanged from the previous year. Including its financial services activities, the Group's net debt at 31st December 2008 was Rp14.7 trillion, compared to Rp13.5 trillion at the end of 2007.
An interim dividend of Rp300 per share (2007: Rp160 per share) was paid on 14th November 2008. A final dividend of Rp570 per share will be proposed to shareholders at the Annual General Meeting in May 2009, bringing the total dividend for the year, if approved, to Rp870 per share (2007: Rp644 per share), an increase of 35% compared to 2007.
Business Activity
Automotive and Financial Services
Operating income from the Group's automotive and financial services businesses, excluding associates and joint ventures, was 33% higher in 2008 at Rp4.1 trillion. The Group's share of results from its automotive and financial services associates and joint ventures was Rp2.3 trillion, an increase of 32%.
The wholesale market for motorcars grew by 40% to 608,000 units. Astra's motorcar sales increased by 43% to 318,000 units, resulting in a slightly higher market share of 52%. Sales during the year were well supported by the launch of four new models, the Lexus LX570, the Alphard 3,500 cc variant, the Peugeot 308, and the Peugeot New Expert Tepee, together with six revamped models including the Toyota Avanza, the Daihatsu Sirion, and the Gran Max Front Facing.
The wholesale market for motorcycles grew by 33% year-on-year to some 6.2 million units, with particularly strong demand from areas outside of Java, attributable in large part by the increased prosperity following the peak in crude palm oil ("CPO") prices in the middle of the year. Demand has, however, declined following recent falls in commodity prices and tighter liquidity. Astra Honda Motor's sales rose 34% to about 2.9 million units, representing a market share of 46%. During the year, Astra Honda Motor launched three new motorcycle models, the CS-1, the BeAT and the Blade, as well as three revamped models, including the Tiger.
The component manufacturing sector benefited from the strong automotive market. Sales at PT Astra Otoparts Tbk, which is now 93.9%-owned, rose 27% with increases in both the domestic and export markets. Its net income grew by 24% to Rp566 billion.
The Group's financial services activities also improved in line with the growth in automotive sales. The amount financed by Federal International Finance and Astra Credit Companies increased by 29% to Rp26.8 trillion. At 31st December 2008 the consumer finance loan book was Rp14.7 trillion, the same as the previous year end as most of the growth was in joint finance without recourse.
PT Bank Permata Tbk, a 44.5%-held associate, saw its net income reduce by 9% to Rp452 billion as the effect of changes in future tax rates on deferred tax assets more than offset the improvement in profitability of its banking operations.
Resources and Other
Operating income from the Group's resources and other businesses, comprising agribusiness, heavy equipment, mining, information technology and infrastructure, rose 42% to Rp7.6 trillion.
The net income of PT Astra Agro Lestari Tbk, which is 79.7%-owned, rose strongly to Rp2.6 trillion in 2008, up 33% over the previous year. This was due to a 19% increase in average CPO prices achieved and a 7% rise in palm oil production to 982,000 tonnes. There have, however, been significant falls in CPO prices recently as demand weakened. Good progress was made in improving the yield of existing plantations and increasing the planted area by 22,000 hectares, bringing the total to more than 251,000 hectares.
PT United Tractors Tbk, which is now 59.5%-owned, produced a net income of Rp2.7 trillion, up 78% from 2007. Sales of Komatsu heavy equipment increased by 26% to more than 4,300 units in response to strong demand. The group's coal mining interests were expanded in early 2008 with the acquisition of Tuah Turangga Agung, which has coal mines in Central Kalimantan. United Tractors completed a Rp3.6 trillion rights issue in September, raising funds for debt refinancing, working capital and capital expenditure, including acquisitions. The company's mining subsidiary, PT Pamapersada Nusantara, extracted 59 million tonnes of coal in 2008, a rise of 8%, while overburden removed increased by 25% to 442 million bcm. Coal sales from its own mines amounted to almost 4 million tonnes.
PT Astra Graphia Tbk, which is 76.9%-owned, operates through a wide network of 75 service points located at 21 branch offices across Indonesia. Its net income in 2008 was 13% lower due to reduced margins.
The Group's infrastructure investments performed satisfactorily. The 30%-held PT PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, increased its sales volume by 3% to 135 million cubic metres. Toll road operator, PT Marga Mandalasakti, which is 62.6% owned, handled a 6% increase in traffic volume.
Prospects
The Group performed exceptionally well in 2008 despite more difficult market conditions developing in the last quarter. The economic downturn has made the outlook for 2009 challenging as businesses face tight liquidity and reduced consumer demand, while there has also been a sharp decline in commodity prices. Despite this, the Group remains well capitalised and is in a strong position to take advantage of opportunities as they arise.
Michael D. Ruslim
President Director
27th February 2009
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For further information, please contact:
PT Astra International Tbk
Arief Istanto, Chief of Corporate Communication
Tel: + 62 - 21 - 6530 4956