JDS.L Regulatory News (JDS)

1 Mar 2007 09:21

Jardine Strategic Hldgs Ld01 March 2007 To: Business Editor 1st March 2007 For immediate release Jardine Cycle & Carriage Limited2006 Financial Statements and Dividend Announcement The following announcement was issued today by the Company's 64%-ownedsubsidiary, Jardine Cycle & Carriage Limited. For further information, please contact: Jardine Matheson LimitedNeil M McNamara (852) 2843 8227 Matheson & Co., LimitedPhilip Hawkins (020) 7816 8136 GolinHarrisKennes Young (852) 2501 7987 Weber Shandwick FinancialRichard Hews/ Helen Thomas (020) 7067 0700 1 March 2007 JARDINE CYCLE & CARRIAGE LIMITED2006 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights • Underlying earnings per share 30% lower at USc62.33 • Significant decline in Astra's automotive sales in difficult markets • Consumer confidence in Indonesia showing some improvement • Strong performance from Singapore motors • Full year dividend per share up 11% "Astra's performance is expected to show steady improvement as Indonesianmarkets continue to recover, although competitive pressures remain significant.In the medium term, Astra's leadership in the automotive sector, its strongmarket positions in financial services, agribusiness and heavy equipment and itsinfrastructure investments provide excellent opportunities for growth." Anthony Nightingale, Chairman1 March 2007 Group Results+------------------------------------------------------------------------------+| Year ended 31 December |+------------------------------------------------------------------------------+| Restated || 2006 2005* Change 2006 Change || US$m US$m % S$m % |+------------------------------------------------------------------------------+|Revenue 7,186 3,798 89 11,377 80 ||Profit after tax 527 426 24 835 18 ||Underlying profit attributable || to shareholders 211 297 -29 335 -32 | |Profit attributable to || shareholders 224 282 -21 354 -25 |+------------------------------------------------------------------------------+| USc USc Sc |+------------------------------------------------------------------------------+|Underlying earnings per share **62.33 88.54 -30 98.70 -33 | |Earnings per share 66.02 84.06 -21 104.51 -25 ||Gross dividend per share 20.00 18.00 11 30.70 2 |+------------------------------------------------------------------------------+| At Restated At || 31.12.06 31.12.05 Change 31.12.06 Change || US$m US$m % S$m % |+------------------------------------------------------------------------------+|Shareholders' funds *** 1,906 1,544 23 2,925 14|+------------------------------------------------------------------------------+| US$ US$ S$ |+------------------------------------------------------------------------------+|Net asset value per share *** 5.56 4.59 21 8.54 12|+------------------------------------------------------------------------------+ The exchange rate of US$1=S$1.5350 (31.12.2005: US$1=S$1.6650) was used fortranslating assets and liabilities at the balance sheet date and US$1=S$1.5832(31.12.2005: US$1=S$1.6664) was used for translating the results for the period. The financial results for the year ended 31 December 2006 have been prepared inaccordance with the International Financial Reporting Standards ("IFRS"). Theseresults have not been audited or reviewed by the Auditors. Astra became a subsidiary on 1 August 2005, and its results have beenconsolidated since then. * The contribution from Astra in 2005 is for 13 months.** The basis of calculating underlying earnings is set out in Note 6 of this report*** The prior year adjustment is set out in Note 1 of this report. CHAIRMAN'S STATEMENT Overview Difficult trading conditions persisted in Indonesia throughout 2006 and led to areduced contribution from Astra. Reductions in interest rates did, however, leadto some improvement in consumer confidence in the latter part of the year.Following the distribution in specie of MCL Land in January 2006, the Group isnow focused on its strategic investment in Astra and its motor businesses inSoutheast Asia. Performance The consolidation of Astra, following it becoming a subsidiary on 1 August 2005,led to the Group's revenue for the year ended 31 December 2006 increasing 89% toUS$7.2 billion. Underlying profit for the year fell by 29% to US$211 million in2006. The 2005 comparative included 13 months' contribution for Astra, requiredto align its accounting period to that of the Group and a US$19 millioncontribution from the Group's stake in MCL Land, which was distributed in speciein early 2006. Without these elements the year-on-year decline would have been18%. Underlying earnings per share on a comparable basis were down 19% atUSc62.33. The contribution from Astra in 2006, compared to the 12 months of 2005, declinedby 18% to US$208 million due to the poor market conditions in Indonesia,particularly in the automotive sector. The impact on Jardine Cycle & Carriage'sresults was mitigated to some extent by the strengthening of the Rupiah againstthe US Dollar. The contribution from the Company's other motor interestsincreased marginally to US$32 million. Profit attributable to shareholders benefited from non-trading gains of US$13million arising from asset sales in Malaysia, translation gains on theliquidation of the Australian operation and revaluation gains on investmentproperties in Indonesia, compared with non-trading losses of US$15 million in2005. The Group's consolidated net debt, excluding borrowings within Astra's financialservices operations, was US$9 million lower at US$600 million. The decrease wasdue to the disposal of Malaysian properties, the exclusion of MCL Land's netdebt, offset partly by the purchase of additional shares in Bank Permata andcapital expenditure within United Tractors. The Company's balance sheet wasstrengthened during the year as net debt was reduced by US$101 million to US$153million at 31 December 2006. The Board is recommending a final dividend of USc 17.00 per share less taxwhich, together with the interim dividend paid in November 2006, will give atotal dividend for the year of USc 20.00 per share less tax, compared with USc18.00 per share less tax in the previous year. This excludes the dividend inspecie of MCL Land shares that was made in January 2006. The final dividend isavailable in cash in US dollars or Singapore dollars with a scrip alternative. Group Review Astra The Indonesian economy was affected by a sharp increase in inflation and highinterest rates following the removal of fuel subsidies in late 2005, althoughconsumer confidence improved towards the end of 2006 as interest rates werelowered. Within Astra's automotive operations, motor vehicle sales in 2006 weredown 32%, although its market share rose from 49% to 55% with a number of newmodel launches. The decline in motorcycle sales was less severe at 12% asvolumes increased in the second half, albeit at lower margins, and Astra'smarket share was stable at some 53%. The performances of Astra's financialservices businesses, which primarily support its automotive operations, declinedin line with the market sector and recorded an increase in doubtful debt provisions and losses on repossessions. Its automotive component manufacturing operations were similarly affected. Astra's agribusiness produced an improved profit contribution in US dollar-termsdue to the appreciation of the Rupiah, but the underlying performance wasrelatively flat as higher production costs offset a 11% increase in crude palmoil sales volumes and firmer prices. Nevertheless, prospects remain promisingand Astra is continuing to source land for new oil palm and rubber plantations.Astra's heavy equipment business, United Tractors, produced satisfactory growthin contract mining with 20% increases achieved in both overburden removal andcoal extraction, although additional provisions for doubtful debts were requiredfor mining contracts. The company's overall profit was also affected by lowersales of Komatsu equipment despite its market share remaining stable at 48%. InJanuary 2007, United Tractors through its mining subsidiary invested US$34million to acquire five companies, which together hold the rights to mine andmarket the coal from concessions located in South Kalimantan. In September 2006, Astra increased its shareholding in Bank Permata from 31.6%to 44.5% in tandem with its partner, Standard Chartered Bank. Bank Permataproduced a marginal increase in profit, but further steps are being taken toimprove productivity and profitability. In infrastructure, Astra's investment ina toll road project performed satisfactorily and, in July 2006, it acquired a30% interest in the franchise for the Western Jakarta water utility. It isreviewing further infrastructure investments. Motor Profit from Jardine Cycle & Carriage's motor operations in Singapore improvedstrongly in 2006 with Mitsubishi and Mercedes-Benz performing particularly well,offsetting declines in Cycle & Carriage Bintang in Malaysia and Tunas Ridean inIndonesia and the cessation of contribution from Australia. The underlyingperformance from Cycle & Carriage Bintang was impacted by the new NationalAutomotive Policy and profits declined, although the efficiency of its balancesheet was improved with the payment of a special dividend. Tunas Ridean was alsoimpacted by the poor market conditions in Indonesia. People Neville Venter retired as Group Finance Director on 31 October 2006, and wassucceeded on 1 November 2006 by SC Chiew. Adam Keswick steps down as GroupManaging Director on 31 March 2007 and will be replaced by Ben Keswick on 1April 2007. I would like to thank both Neville and Adam for their significantcontributions to the Group. Mark Greenberg, Group Strategy Director of Jardine Matheson Limited, joined theBoard as a non-executive director on 7 June 2006. On behalf of the Directors, I wish to thank all the employees of the Company,its subsidiaries and associates for their dedication and loyal service. I alsowish to thank all our customers, shareholders and business partners for theirsupport. Prospects Astra's performance is expected to show steady improvement as Indonesian marketscontinue to recover, although competitive pressures remain significant. In themedium term, Astra's leadership in the automotive sector, its strong marketpositions in financial services, agribusiness and heavy equipment and itsinfrastructure investments provide excellent opportunities for growth. Anthony NightingaleChairman1 March 2007 --------------------------------------------------------------------------------Jardine Cycle & Carriage Limited Consolidated Profit and Loss Account for the year ended 31 December -------------------------------------------------------------------------------- Restated 2006 2005 Change Note US$m US$m %Continuing operations----------------------- Revenue 3 7,186.3 3,768.3 91Cost of sales (5,733.3) (3,074.1) 87 -------- --------Group profit 1,453.0 694.2 109 Other operating income 168.1 65.6 156Selling and distribution expenses (464.2) (263.9) 76Administrative expenses (435.1) (233.3) 86Other operating expenses (120.0) (41.4) 190 -------- --------Operating profit 601.8 221.2 172 Net financing charges (55.3) (16.3) 239Share of associates' and joint ventures' results 155.0 276.0 -44 -------- --------Profit before tax 3 701.5 480.9 46Tax 4 (174.2) (71.7) 143 -------- --------Profit after tax from continuing operations 527.3 409.2 29 -------- -------- Discontinued operations------------------------- Revenue 3 - 29.4 -100 ======== ========Profit before tax 3 - 18.7 -100Tax 4 - (2.1) -100 -------- --------Profit after tax from discontinued operations 14 - 16.6 -100 -------- --------Profit after tax 3 527.3 425.8 24 ======== ========Profit attributable to: Shareholders of the Company 223.8 281.7 -21 Minority interests 303.5 144.1 111 -------- -------- 527.3 425.8 24 ======== ========-------------------------------------------------------------------------- USc USc--------------------------------------------------------------------------Earnings per share - basic 6 66.02 84.06 -21 - diluted 65.98 83.99 -21 Earnings per share from continuing operations - basic 6 66.02 82.18 -20 - diluted 65.98 82.11 -20-------------------------------------------------------------------------- --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Balance Sheet at 31 December-------------------------------------------------------------------------------- Restated Note 2006 2005 US$m US$mNon-current assetsIntangible assets 457.7 421.9Leasehold land use rights 429.9 399.4Property, plant and equipment 1,274.4 1,037.5Investment properties 33.0 51.1Plantations 460.1 383.1Interests in associates and joint 1,372.3 1,093.7venturesNon-current investments 85.5 43.4Debtors 963.1 1,218.0Deferred tax assets 57.6 51.7Other non-current assets 71.5 73.1 -------- -------- 5,205.1 4,772.9 -------- --------Current assetsDevelopment properties for sale - 415.9Stocks 613.2 678.2Debtors 1,694.8 2,054.3Current tax assets 123.6 45.1Current investments 17.3 -Bank balances and other liquid funds - non-finance companies 395.6 317.2- finance companies 172.8 186.6 568.4 503.8 -------- -------- 3,017.3 3,697.3Non-current assets classified as 2.2 -held for sale -------- -------- 3,019.5 3,697.3 -------- --------Total assets 8,224.6 8,470.2 -------- --------Non-current liabilitiesProvisions 15.5 10.6Long-term borrowings 8 - non-finance companies 325.0 394.6- finance companies 722.7 1,005.3 1,047.7 1,399.9Deferred tax liabilities 299.6 270.6Other non-current liabilities 179.7 166.4 -------- -------- 1,542.5 1,847.5 -------- --------Current liabilitiesProvisions 26.3 38.9Current borrowings 8 - non-finance companies 675.3 542.0- finance companies 953.9 1,168.9 1,629.2 1,710.9Current tax liabilities 36.3 74.0Dividend payable - 250.6Creditors 935.1 1,017.1 -------- -------- 2,626.9 3,091.5 -------- --------Total liabilities 4,169.4 4,939.0 -------- --------Net assets 4,055.2 3,531.2 ======== ========EquityShare capital 9 495.7 185.4Share premium 9 - 274.0Fair value and other reserves 10 330.2 307.3Revenue reserve 11 1,079.7 777.3 -------- --------Shareholders' funds 1,905.6 1,544.0Minority interests 12 2,149.6 1,987.2 -------- -------- 4,055.2 3,531.2 ======== ======== Net asset value per share US$5.56 US$4.59 --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Statement of Recognised Income and Expense for the year ended 31 December-------------------------------------------------------------------------------- Restated 2006 2005 US$m US$mRevaluation surplus of intangible assets, net of tax - 280.5 Revaluation surplus of land and buildings, net of tax 35.2 14.0 Fair value changes of hedging derivatives (1.4) - Fair value changes of available-for-sale investments, net of tax 17.4 (4.2) Actuarial gain/(loss) on defined benefit pension plans (10.8) 25.1 Loss on dilution of interest in investments - (0.2) Translation difference 296.2 (37.3) -------- --------Net gain recognised directly in equity 336.6 277.9 Profit after tax 527.3 425.8 -------- --------Total recognised income and expense for the year 863.9 703.7 ======== ========Profit attributable to:Shareholders of the Company 374.1 536.0Minority interests 489.8 167.7 -------- -------- 863.9 703.7 ======== ======== --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedCompany Balance Sheet at 31 December-------------------------------------------------------------------------------- 2006 2005 US$m US$mNon-current assets Property, plant and equipment 0.9 0.9Interests in subsidiaries 1,202.0 1,358.3Interests in associates 47.8 44.6 -------- -------- 1,250.7 1,403.8 -------- --------Current assetsDebtors 20.0 19.8Bank balances and other liquid funds 29.1 0.3 -------- -------- 49.1 20.1 -------- --------Total assets 1,299.8 1,423.9 -------- --------Non-current liabilitiesDeferred tax liabilities 0.4 0.4 -------- -------- 0.4 0.4 -------- --------Current liabilitiesCurrent borrowings 182.4 254.0Current tax liabilities 0.8 0.8Creditors 70.1 316.8 -------- -------- 253.3 571.6 -------- --------Total liabilities 253.7 572.0 -------- --------Net assets 1,046.1 851.9 ======== ========Share capital and reservesShare capital 495.7 185.4Share premium - 274.0Share option reserve 0.3 0.3Revenue reserve 550.1 392.2 -------- --------Shareholders' funds 1,046.1 851.9 ======== ========Net asset value per share US$3.05 US$2.53 --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedCompany Statement of Recognised Income and Expenses-------------------------------------------------------------------------------- 2006 2005 US$m US$m Translation difference 75.9 (19.8) -------- --------Net gain/(loss) recognised directly in equity 75.9 (19.8)Profit after tax 130.8 82.9 -------- --------Total recognised income and expense for the year 206.7 63.1 ======== ========Profit attributable to: Shareholders of the Company 206.7 63.1 ======== ======== --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Statement of Cash Flows for the year ended 31 December-------------------------------------------------------------------------------- 2006 2005 Note US$m US$m Cash flows from operating activities 13 1,596.7 11.4Cash generated from operations Interest paid (89.2) (32.1)Interest received 39.1 16.3Other finance costs paid (1.4) (0.7)Income tax paid (283.0) (114.0) (334.5) (130.5) -------- --------Net cash flows from/(used in) 1,262.2 (119.1)operating activities Cash flows from investing activitiesSale of leasehold land use rights 19.6 6.2Sale of property, plant and equipment 47.2 47.5Sale of investment properties - 49.6Sale of shares in associates 0.9 3.2Sale of subsidiaries, net of cash disposed (28.6) -Sale of other investments 35.7 -Purchase of intangible assets (1.0) -Purchase of leasehold land use rights (17.3) (11.7)Purchase of property, plant and equipment (394.2) (266.9)Purchase of an investment property - (8.1)Purchase of plantations (21.5) (6.2)Purchase of shares in associates (175.2) (35.6)Purchase of other investments (144.5) (1.0)Acquisition of Astra, net of cash acquired* - 319.8Acquisition of other subsidiaries, net of cash acquired (6.8) (18.1)Capital repayment of long-term investments 53.4 2.9Dividends received from associates (net) 143.9 126.5 Net cash flows from/(used in) (488.4) 208.1investing activities Cash flows from financing activitiesProceeds from issue of shares 0.2 1.2Drawdown of loans 2,420.0 1,785.9Repayment of loans (2,993.1) (1,486.4) Investment by minority interests 9.5 -Dividends paid to minority interests (174.1) (66.7)Dividends paid (12.7) (9.7) Net cash flows from/(used in) (750.2) 224.3financing activities -------- -------- Net change in cash and cash equivalents 23.6 313.3Cash and cash equivalents at thebeginning of the year 491.0 177.0Effect of exchange rate changes 37.3 0.7 -------- --------Cash and cash equivalents at the end 551.9 491.0of the year ======== ======== * For the year ended 31 December 2005, the cash inflow of US$319.8 millionconsisted of cash acquired of US$453.8 million offset by the consideration paidof US$134.0 million arising from the purchase of additional interest in Astra. --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedNotes-------------------------------------------------------------------------------- 1 Basis of preparation The financial statements are consistent with those set out in the 2005 auditedaccounts which have been prepared in accordance with International FinancialReporting Standards ("IFRS"). There have been no changes to the accountingpolicies described in the 2005 audited accounts except for the adoption of theamendments and interpretation to existing standards shown below: IAS 19 (amended 2005) Employee BenefitsIAS 39 (amended 2005) Cash Flow Hedge Accounting of Forecast Intragroup TransactionsIAS 39 (amended 2005) The Fair Value OptionIAS 39 and IFRS 4 (amended 2005)Financial Guarantee ContractsIFRIC 4 Determining whether an Arrangement contains a Lease The adoption of these amendments and interpretation did not have a materialimpact on the results of the Group. The preparation of financial statements in conformity with IFRS requires the useof certain critical accounting estimates. It also requires management toexercise its judgment in the process of applying the Group's accounting polices.Estimates and judgments used in preparing the financial statements arecontinually evaluated and are based on historical experience and other factors,including expectations of future events that are believed to be reasonable underthe circumstances. The resulting accounting estimates will, by definition,seldom equal the related actual results. With Astra becoming a subsidiary in August 2005, the initial accounting for thebusiness combination under IFRS 3 Business Combinations involved identifying anddetermining the fair values to be assigned to Astra's identifiable assets,liabilities and contingent liabilities and the cost of the combination. Prior year adjustmentThe finalisation of the initial accounting for the business combination hasresulted in changes to the Group's balance sheet as at 1 January 2006 and 31December 2005. The impact of the prior year adjustment is as follows: US$m Decrease in intangible assets (60.4)Decrease in interests in associates and joint ventures (60.0)Decrease in deferred tax liabilities 21.8Decrease in minority interests 63.4 -----Decrease in shareholders' funds (35.2) ===== UScDecrease in net asset value per share (0.10) ===== 2 Reconciliation between IAS 17 and IAS 40 and FRS 25 A reconciliation of the differences between IAS 17 Leases ("IAS 17") and IAS 40Investment Properties ("IAS 40") and Singapore's FRS 25 Accounting forInvestments ("FRS 25") is to be disclosed as required by the Accounting andCorporate Regulatory Authority in approving the Company's application for theadoption of International Financial Reporting Standards. The differences between IAS 17 and IAS 40 and FRS 25 arise from the accountingtreatment of valuation changes in investment properties. Under IAS 40,investment properties are carried at fair value and changes in fair values arerecognised directly in the consolidated profit and loss account. This contrastswith FRS 25 where the investment properties are carried at revalued amounts. Thenet surplus or deficit on revaluation is first taken to revaluation reserveunless the revaluation surplus is insufficient to cover the deficit, in whichcase, the amount by which the deficit exceeds the available surplus is chargedto the consolidated profit and loss account. The surplus on revaluation notutilised at the date of the sale of investment properties is taken to theconsolidated profit and loss account. The financial effects on key financial information are disclosed as follows: Profit Profit attributable Earnings Investment Net before to per properties assets tax shareholders share US$m US$m US$m US$m UScIFRS Group balancesas at 31 December 33.0 4,055.2 701.5 223.8 66.022006 =========Effect of transferof fair valuechanges to assetrevaluationreserve on:- profit before tax - - (7.2) (7.2)- tax - - - 2.2- minority interests - - - 2.5 -------- ------- -------- --------- - - (7.2) (2.5) (0.74)FRS 25 Group adjustedbalances as at31 December 2006 33.0 4,055.2 694.3 221.3 65.28 ======== ======= ======== ========= ========= 3 Profit before tax GroupYear ended 31 December 2006 2005 Change US$m US$m %Revenue:- 1st half 3,583.2 543.2 560- 2nd half 3,603.1 3,254.5 11 ------- ------- 7,186.3 3,797.7 89 ======= =======Profit after tax:- 1st half 249.9 162.4 54- 2nd half 277.4 263.4 5 ------- ------- 527.3 425.8 24 ======= =======Profit before tax is determined after including:Interest income 39.4 15.8 149Interest expense (92.9) (29.5) 215Depreciation and amortisation of property,plant and equipment and leasehold land use rights (237.2) (88.4) 168 Fair value changes of: - plantations 22.2 15.2 46- investment properties 5.8 (0.8) nm- financial derivative contracts (15.8) (5.2) 204 (Provision)/write-back for:- development properties - 10.4 -100- loss arising from the distribution of MCL Land shares in specie - (12.8) -100- closure costs (0.3) (3.6) -92- warranty and goodwill claims (6.4) (7.3) -12 Profit/(loss) on disposal of:- leasehold land use rights 13.0 (2.6) nm- property, plant and equipment 11.5 2.9 297- investment properties - 1.2 -100- shares in subsidiaries/liquidation of subsidiaries 11.3 - 100- repossessed assets (103.8) (17.1) 507 Write-down of stocks (2.0) (2.0) -Impairment of:- intangible assets - (0.8) -100- debtors (118.2) (85.1) 39 Net exchange gain 48.9 6.7 630 ======= =======nm: not meaningful 4 Tax The provision for income tax is based on the statutory tax rates of therespective countries in which the companies operate after taking into accountnon-deductible expenses and group tax relief. 5 Dividends Group and CompanyYear ended 31 December 2006 2005 Change US$m US$m %Dividends paid (net of tax):- Final dividend in respect of 2005 of US$0.15 per share, 40.6 21.3 91 (2004: US$0.08) less income tax- Interim dividend in respect of 2006 of US$0.03 per share, 8.2 8.0 3 (2005: US$0.03) less income tax- Interim dividend in respect of 2005 distribution in specie - 250.6 -100 ------- ------- 48.8 279.9 -83 ======= ======= Value of scrip dividends allotted and issued:- Final dividend of previous financial 30.6 14.4 113 year- Interim dividend of current financial 5.5 5.2 6 year ------- ------- 36.1 19.6 84 ======= ======= On 25 January 2006, the distribution of 242,824,655 ordinary shares of MCL LandLimited held by the Company to its shareholders by way of a dividend in speciewas completed. The distribution was in the proportion of 0.72 MCL Land StockUnits for every one ordinary share of S$1.00 in the capital of the Company. Thedividend rate was S$1.55 per share less income tax. The Board is recommending a final dividend of USc 17.00 per share less taxwhich, together with the interim dividend but excluding the dividend in specie,will give a total dividend for the year of USc20.00 per share less tax. 6 Earnings per share GroupYear ended 31 December 2006 2005 US$m US$mBasic earnings per share Profit attributable to shareholders 223.8 281.7Weighted average number of ordinaryshares in issue (millions) 339.0 335.1Basic earnings per share USc66.02 USc84.06 ======= =======Profit attributable to shareholders fromcontinuing operations 223.8 275.4Basic earnings per share from continuing USc66.02 USc82.18operations ======= ======= Profit attributable to shareholders fromdiscontinued operations - 6.3Basic earnings per share from discontinued USc- USc1.88operations ======= ======= Diluted earnings per share Profit attributable to shareholders 223.8 281.7Weighted average number of ordinaryshares in issue (millions) 339.0 335.1Adjustment for assumed conversion ofshare options (millions) 0.2 0.3 ------- -------Weighted average number of ordinaryshares for dilutedearnings per share (millions) 339.2 335.4 ======= =======Diluted earnings per share USc65.98 USc83.99 ======= ======= Profit attributable to shareholders fromcontinuing operations 223.8 275.4Diluted earnings per share from continuing USc65.98 USc82.11operations ======= ======= Profit attributable to shareholders fromdiscontinued operations - 6.3Diluted earnings per share from discontinued USc- USc1.88operations ======= ======= Underlying earnings per shareUnderlying profit attributable toshareholders 211.3 296.7 Basic underlying earnings per share USc62.33 USc88.54 ======= =======Diluted underlying earnings per share USc62.29 USc88.46 ======= ======= A reconciliation of the profit attributable to shareholders and underlyingprofit attributable to shareholders is as follows: GroupYear ended 31 December 2006 2005 US$m US$m Profit attributable to shareholders 223.8 281.7 Less: Non-trading items (net of tax and minorityinterests) Profit on disposal of Malaysian properties 6.5 -Profit on liquidation/closure of Australian 3.5 3.6operationsRevaluation of investment properties 2.5 -Loss on closure of Thailand operations - (5.0)Provision for loss arising from the distribution ofMCL Land shares in specie - (12.8)Impairment of intangible assets - (0.8) 12.5 (15.0) ------- -------Underlying profit attributable to shareholders 211.3 296.7 ======= ======= The underlying profit attributable to shareholders by business is shown below: Group 2006 2005 Change US$m US$m %AstraMotor vehicles 45.4 81.9 -45Motorcycles 56.5 98.1 -42Other automotive 12.9 16.1 -20 -------- --------Total automotive 114.8 196.1 -41Non-automotive 104.4 94.1 11Corporate costs (14.3) (17.1) -16 -------- --------Trading profit 204.9 273.1 -25Forex and others 3.1 (0.3) nm -------- -------- 208.0 272.8 -24 -------- --------MotorsSingapore 29.6 20.2 47Malaysia 0.9 2.9 -69Indonesia (Tunas Ridean) 1.3 5.9 -78Australia - 2.6 -100Others - (2.6) -100 -------- -------- 31.8 29.0 10 -------- --------Property - 20.1 -100 -------- --------Corporate costs and others (17.8) (17.4) 2Withholding tax on dividends from (10.7) (7.8) 37Indonesia -------- -------- (28.5) (25.2) 13 -------- -------- -------- --------Underlying profit attributable to 211.3 296.7 -29shareholders ======== ======== In 2005, the contribution from Astra, which has been consolidated since 1 August2005, was for 13 months. 7 Segment information (a) Primary reporting format - business segments The segment results for the years ended 31 December 2006 and 2005 are as follows: Revenue Segment Results 2006 2005 2006 2005 US$m US$m US$m US$mAstra:- Automotive 3,308.1 1,603.6 121.9 52.8- Financial services 805.3 321.5 82.2 20.1- Heavy equipment 1,500.0 619.7 177.8 69.7- Agribusiness 410.8 156.5 158.6 59.3- Others 69.8 28.0 14.4 1.7- Elimination (26.6) (17.9) - (4.7) ------- ------- ------- -------- 6,067.4 2,711.4 554.9 198.9Motor 1,118.9 1,056.5 55.5 30.7Property* - 29.8 - 31.0Others - - (8.6) (22.0) ------- ------- ------- -------- 7,186.3 3,797.7 601.8 238.6 ======= =======Net financing charges (55.3) (14.8) ------- --------Share of associates' and joint ventures' results: - Astra 151.1 266.0- Motor 3.2 9.5- Property* - (0.2)- Others 0.7 0.5 155.0 275.8 ------- --------Profit before tax 701.5 499.6Tax (174.2) (73.8) ------- --------Profit after tax 527.3 425.8 ======= ======== The segment assets and liabilities as at 31 December 2006 and 2005 and capitalexpenditure for the years then ended are as follows: Segment Assets Segment Liabilities Capital Expenditure 2006 2005 2006 2005 2006 2005 US$m US$m US$m US$m US$m US$mAstra: - Automotive 1,439.8 1,189.0 341.2 339.6 97.7 56.4 - Financial 2,083.5 2,651.7 295.3 278.5 14.8 6.9 services - Heavy 1,263.8 1,237.2 339.5 354.7 219.4 155.9 equipment - Agribusiness 780.0 687.5 40.3 39.2 40.8 20.1 - Others 72.1 97.4 19.9 13.1 7.5 3.3 - Elimination (8.3) (81.8) (7.7) (55.5) - - 5,630.9 5,781.0 1,028.5 969.6 380.2 242.6Motor 348.2 347.0 119.5 113.0 13.5 21.9Property* 4.2 523.4 0.2 106.7 - 1.6Others 11.0 11.2 8.2 272.4 0.5 0.8 ------- ------ ------- ------ ------ ------ 5,994.3 6,662.6 1,156.4 1,461.7 394.2 266.9Investments inassociates and joint ventures: - Astra 1,305.0 1,053.2 - - - - - Motor 61.5 61.6 - - - - - Property* - 34.0 - - - - - Others 5.8 4.9 - - - - 1,372.3 1,153.7 - - - -Unallocatedassets/liabilities 858.0 653.9 3,013.0 3,477.3 - - ------- ------ ------- ------ ------ ------ 8,224.6 8,470.2 4,169.4 4,939.0 394.2 266.9 ======= ====== ======= ====== ====== ======* discontinued operations Other segment items are as follows: Depreciation and Impairment of debtors amortisation 2006 2005 2006 2005 US$m US$m US$m US$mAstra:- Automotive 79.0 32.1 1.3 (0.2)- Financial 10.8 4.3 86.5 90.5 services- Heavy 115.8 34.8 30.5 8.7 equipment- Agribusiness 16.1 6.0 - -- Others 7.8 3.0 - -- Elimination - - 0.2 - ------- ------- ------- ------- 229.5 80.2 118.5 99.0Motor 7.5 7.5 (0.3) (2.1)Property* - 0.4 - (11.8)Others 0.2 0.3 - - ------- ------- ------- ------- 237.2 88.4 118.2 85.1 ======= ======= ======= =======* discontinued operations The Group is organised into two main business segments, namely Astra and Motorwhile the Others segment consists of investment holding activities. Astra isfurther organised into four main business segments, namely Automotive, FinancialServices, Heavy Equipment and Agribusiness while its Others segment comprisemainly information technology and infrastructure. Inter-segment revenue is not significant. Unallocated assets and liabilitiescomprise other investments, tax assets and liabilities, cash and cashequivalents and borrowings. Capital expenditure comprises additions tointangible assets, leasehold land use rights, property, plant and equipment,investment properties and plantations, including those arising from acquisitionsof subsidiaries. On 25 January 2006, the Group exited the property segment following thedistribution of its 65.6% interest in MCL Land to its shareholders by way of adividend in specie. (b) Secondary reporting format - geographical segments The Group's two business segments operate in three main geographical areas: Singapore is the home country of the Company. The areas of operation are motorvehicle distribution, retail and provision of after-sales services and otherinvestment holding activities. Indonesia - the areas of operation are mainly the assembly, distribution andretailing of motor vehicles and motorcycles and related spare parts, financialservices, agribusiness, heavy equipment and others consisting mainly ofinformation technology and infrastructure. Malaysia - the areas of operation are vehicle distribution, retailing and theprovision of after-sales services. Revenue is based on the country in which the customer is located. It would notbe materially different if it is based on the country in which the order isreceived. Total assets and capital expenditure are shown by the geographicalarea in which the assets are located. Total Capital Revenue assets expenditure US$m US$m US$mYear ended 31 December 2006Singapore 941.7 317.1 10.7Indonesia 6,067.4 7,758.2 380.2Malaysia 175.2 149.1 3.3Others 2.0 0.2 - -------- -------- --------- 7,186.3 8,224.6 394.2 ======== ======== ========= Total Capital Revenue assets expenditure US$m US$m US$mYear ended 31 December 2005Singapore 856.8 834.1 15.9Indonesia 2,711.4 7,433.8 242.6Malaysia 201.5 193.6 7.3Australasia - 3.1 -Others 28.0 5.6 1.1 -------- -------- --------- 3,797.7 8,470.2 266.9 ======== ======== ========= 8 Borrowings Group 2006 2005 US$m US$mLong-term borrowings:- secured 519.4 581.9- unsecured 528.3 818.0 -------- -------- 1,047.7 1,399.9 -------- -------- Current borrowings:- secured 502.8 472.2- unsecured 1,126.4 1,238.7 -------- -------- 1,629.2 1,710.9 -------- -------- -------- --------Total borrowings 2,676.9 3,110.8 ======== ======== Certain subsidiaries of the Group have pledged their assets in order to obtainbank loans and guarantee facilities from financial institutions. The value ofassets pledged/mortgaged was US$944.5 million (31 December 2005: US$1,145.6million). 9 Share capital and share premium Company 2006 2005 US$m US$mShare capital:Balance at 1 January 185.4 183.6Transfer from share premium 274.0 -Issue of shares under Scrip Dividend Scheme 36.1 1.5Issue of shares under CCL Executives' 0.2 0.3Shares Option Schemes -------- --------Balance at 31 December 495.7 185.4 ======== ======== Share premium:Balance at 1 January 274.0 254.9Transfer to share capital (274.0) -Issue of shares under Scrip Dividend Scheme - 18.1Issue of shares under CCL Executives' - 0.9Shares Option SchemesTransfer from share option reserve - 0.1 -------- --------Balance at 31 December - 274.0 ======== ======== Pursuant to the abolition of the concepts of authorised share capital and thenominal value of share capital in the Companies (Amendment) Act 2005 which tookeffect on 30 January 2006, the amount in share premium has become part of theCompany's share capital. 10 Fair value and other reserves Group Company 2006 2005 2006 2005Composition: US$m US$m US$m US$m-------------- Fair value reserve 9.5 1.2 - -Asset revaluation reserve 317.9 302.0 - -Hedging reserve (0.8) - - -Share option reserve 0.3 0.3 0.3 0.3Other reserve 3.3 3.8 - - ------- ------- ------- -------- 330.2 307.3 0.3 0.3 ======= ======= ======= ========Movements:------------Fair value reserveBalance at 1 January 1.2 2.7 - -Fair value changes ofavailable-for-sale 8.3 (1.5) - -investments, net of tax ------- ------- ------- --------Balance at 31 December 9.5 1.2 - - ======= ======= ======= ========Asset revaluation reserveBalance at 1 January as 336.9 10.3 - -previously reportedPrior year adjustment (Note 1) (34.9) - - - ------- ------- ------- --------Balance at 1 January restated 302.0 10.3 - -Revaluation surplus ofintangible assets, - 280.5 - -net of taxRevaluation surplus of land andbuildings, 16.0 14.1 - -net of taxReserve realised on disposal ofland and (0.1) (2.9) - -buildings ------- ------- ------- --------Balance at 31 December 317.9 302.0 - - ======= ======= ======= ========Hedging reserveBalance at 1 January - - - -Fair value changes of (0.8) - - -derivatives ------- ------- ------- --------Balance at 31 December (0.8) - - - ======= ======= ======= ======== Share option reserveBalance at 1 January 0.3 0.4 0.3 0.4Transfer to share premium foroptions exercised - (0.1) - (0.1) ------- ------- ------- --------Balance at 31 December 0.3 0.3 0.3 0.3 ======= ======= ======= ========Other reserveBalance at 1 January 3.8 3.8 - -Reserve realised on disposal of (0.5) - - -subsidiary ------- ------- ------- --------Balance at 31 December 3.3 3.8 - - ======= ======= ======= ======== 11 Revenue reserve Group Company 2006 2005 2006 2005 US$m US$m US$m US$mComposition:--------------Translation reserve 66.9 (63.4) 153.2 77.3Retained earnings 1,012.8 840.7 396.9 314.9 ------- ------- ------- ------- 1,079.7 777.3 550.1 392.2 ======= ======= ======= =======Movements:------------Translation reserveBalance at 1 January aspreviously reported (63.1) (13.8) 77.3 97.1Prior year adjustment (Note 1) (0.3) - - - ------- ------- ------- -------Balance at 1 January restated (63.4) (13.8) 77.3 97.1Translation difference 131.6 (47.4) 75.9 (19.8) Reserve realised on:- disposal of subsidiaries (1.3) - - -- repayment of equity loans - (2.2) - - ------- ------- ------- ------- 66.9 (63.4) 153.2 77.3 ======= ======= ======= =======Balance at 31 December Retained earningsBalance at 1 January 840.7 827.4 314.9 511.9Asset revaluation reserverealised on disposalof land and buildings 0.1 2.9 - -Capital reserve realised ondisposal of subsidiary 0.5 - - -Actuarial gain/(loss) ondefined benefit pensionplans, net of tax (4.6) 8.8 - -Gain/(loss) on dilution ofinterest in investments 1.1 (0.2) - -Profit attributable toshareholders 223.8 281.7 130.8 82.9Dividends (net) (48.8) (279.9) (48.8) (279.9) ------- ------- ------- -------Balance at 31 December 1,012.8 840.7 396.9 314.9 ======= ======= ======= ======= 12 Minority interests Group 2006 2005 US$m US$m Balance at 1 January as previously reported 2,050.6 222.4Prior year adjustment (Note 1) (63.4) - -------- --------Balance at 1 January as restated 1,987.2 222.4 Revaluation surplus of land and buildings, net 19.2 (0.1)of taxFair value changes of available-for-saleinvestments, net of tax 9.1 (2.7)Fair value changes of derivatives (0.6) -Actuarial gain/(loss) on defined benefit (6.2) 16.3pension plansLoss on dilution of interest in investments (1.1) -Translation difference 165.9 10.1 Net gain recognised directly in equity 186.3 23.6Profit for the year 303.5 144.1 -------- --------Total recognised gain for the year 489.8 167.7Dividends (net) (174.1) (66.7)Issue of shares 9.5 -Acquisition/disposal of subsidiaries (162.8) 1,663.8 -------- --------Balance at 31 December 2,149.6 1,987.2 ======== ======== 13 Cash flows from operating activities Group 2006 2005 US$m US$m Profit before tax 701.5 499.6Adjustments for: Interest income (39.4) (15.8)Financing charges 94.1 30.3Share of associates' and joint (155.0) (275.8)ventures' resultsDepreciation, amortisation and impairment of property, plant and equipment and leasehold land use rights 237.2 88.4Impairment of intangible assets - 0.8Impairment of other investments - 0.2Revaluation deficit of property, plant and equipment 1.4 1.8Foreign exchange translation difference (38.4) (8.9)Profit on disposal of property, plant and equipment (11.5) (2.9)Loss/(profit) on disposal of leasehold land use rights (13.0) 2.6Loss on disposal of plantations 0.2 0.2Write-down of stocks 2.0 2.0Impairment of debtors and bad debts written off 118.2 85.1Loss on disposal of repossessed assets 103.8 17.1Changes in provisions 11.6 32.4Profit on disposal/liquidation of subsidiaries (11.3) -Fair value changes of investment properties (5.8) 0.8Fair value changes of plantations (22.2) (15.2)Write-back in provision for foreseeable losses - (4.7)Profit on disposal of investment properties - (1.2)Loss on disposal of associates - 0.1Negative goodwill on acquisition of subsidiaries (0.2) - 271.7 (62.7) -------- --------Operating profit before working 973.2 436.9capital changes Changes in working capital: Development properties for sale - (128.5)Stocks 111.8 (93.3)Financing debtors 616.7 (234.5)Debtors (66.6) 50.3Creditors (60.4) (37.4)Pensions 5.6 17.3Financial derivatives 16.4 0.6 623.5 (425.5) -------- --------Cash flows from operations 1,596.7 11.4 ======== ======== 14 Discontinued operations On 25 January 2006, following the distribution of 242,824,655 ordinary shares ofMCL Land Limited held by the Company to its shareholders by way of a dividend inspecie, MCL Land Limited ceased to be a subsidiary of the Company. Thedistribution completes the Group's strategy of withdrawing from propertyactivities. GroupYear ended 31 December 2005 US$mProfit of discontinued operations:Revenue 29.4Operating income 0.8 ---------Operating profit 30.2Financing income 1.5Share of associates' and joint ventures' results (0.2) ---------Profit before tax 31.5Tax (2.1) ---------Profit after tax 29.4Loss arising from the distribution of shares in specie (12.8) --------- 16.6 =========Cashflow of discontinued operations:Operating cash flows 2.6Investment cash flows (26.6)Financing cash flows (87.3) ---------Total cash outflows (111.3) ========= 15 Interested person transactions Name of interested person Aggregate value of Aggregate value of--------------------------- all interested all interested person person transactions transactions (excluding conducted under transactions less shareholders' mandate than S$100,000 and pursuant to Rule 920 transactions (excluding conducted under transactions less shareholders' than S$100,000) mandate pursuant to Rule 920) -------------- --------------- US$m US$mThree months ended 31 December 2006Gammon Construction Limited- variation orders relating tothe construction of a building - 1.7Jardine Matheson Limited- management consultancy services - 0.4Jardine OneSolution (2001) Pte Ltd- engagement of IT services - 0.2Director of the Company, Cheah Kim Teck- purchase of a used motor vehicle 0.1 - -------------- --------------- 0.1 2.3 ============== =============== Year ended 31 December 2006Gammon Construction Limited- variation orders relating tothe construction of a building - 1.7Jardine Matheson Limited- management consultancy services - 1.1Jardine OneSolution (2001) Pte Ltd- engagement of IT services - 0.3Jardine Shipping Agencies- sale of a motor vehicle - 0.1- purchase of a used motor vehicle - 0.1MCL Land Limited- sale of a used motor vehicle - 0.1Director of the Company, Chang See Hiang- sale of a motor vehicle 0.2 -- purchase of a used motor vehicle 0.1 -Director of the Company, Cheah Kim Teck- purchase of a used motor vehicle 0.1 -Director of the Company, Alan Yeo- sale of a motor vehicle 0.1 - -------------- --------------- 0.5 3.4 ============== =============== 16 Issue of shares The number of shares that may be issued on conversion of all outstanding optionsgranted pursuant to the CCL Executives' Share Option Schemes amounted to 291,000as at 31 December 2006 (31 December 2005: 466,000). Between 1 October 2006 and 31 December 2006, 18,000 ordinary shares were issuedfor cash to executives who exercised the options granted under the CCLExecutives' Share Option Schemes to subscribe for shares in the capital of theCompany at the exercise prices of S$1.067 and S$1.664 per share. On 14 November2006, 705,310 ordinary shares were allotted and issued to the eligible membersof the Company who have elected to participate in the Jardine Cycle & CarriageLimited Scrip Dividend Scheme in respect of the interim dividend of US$0.03 perordinary share less 20% Singapore Income Tax for the financial year ended 31December 2006 at the issue price of S$12.37 for each new share. Except for those mentioned above, there were no other rights, bonus or equityissues during the period between 1 October 2006 and 31 December 2006. 17 Closure of books NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members willbe closed from 5.00 pm on Monday, 14 May 2007 to Tuesday, 15 May 2007 for thepurpose of determining shareholders' entitlement to the final dividend. Duly completed transfers received by Jardine Cycle & Carriage Limited's ShareRegistrar, M & C Services Private Limited at 138 Robinson Road #17-00, TheCorporate Office, Singapore 068906 up to 5.00 p.m. on Monday, 14 May 2007("Books Closure Date") will be registered before entitlements to the finaldividend are determined. Shareholders whose securities accounts with The CentralDepository (Pte) Limited ("CDP") are credited with shares as at the BooksClosure Date will be entitled to the final dividend. The final dividend will bepaid on or about 3 July 2007. As in the previous years, shareholders willcontinue to have the option to receive the dividend in scrip. Shareholders whodo not elect for the scrip alternative will have the option to receive thedividend in Singapore dollars. In the absence of any election, the dividend willbe paid in US dollars. Details on these electives will be furnished toshareholders in due course. 18 Others The results do not include any pre-acquisition profits and have not beenaffected by any item, transaction or event of a material or unusual nature otherthan the non-trading items set out in note 6 of this report.No significant transaction or event has occurred between 1 January 2007 and thedate of this report. 19 Notice pursuant to Rule 704(11) of the Listing Manual Pursuant to Rule 704(11) of the SGX-ST Listing Manual, Jardine Cycle & CarriageLimited wishes to announce that no person occupying a managerial position in theCompany or any of its principal subsidiaries is a relative of a director orchief executive officer or substantial shareholder of the Company. - end - For further information, please contact: Jardine Cycle & Carriage LimitedHo Yeng Tat Tel: 65 64708108 The full text of the Financial Statements and Dividend Announcement for the yearended 31 December 2006 can be accessed through the internet at'www.jcclgroup.com'. 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