JDS.L Regulatory News (JDS)

To: Business Editor 4th August 2017

For immediate release

Jardine Cycle & Carriage Limited

2017 Half Year Financial Statements and Dividend Announcement

The following announcement was issued today by the Company's 75%-owned subsidiary, Jardine Cycle & Carriage Limited.

For further information, please contact:

Jardine Matheson Limited

Neil M McNamara (852) 2843 8227

Brunswick Group Limited

Karin Wong (852) 3512 5077

4th August 2017

JARDINE CYCLE & CARRIAGE LIMITED

2017 HALF YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

· Underlying earnings per share up 13%

· Stronger performances from most of Astra's businesses

· Lower contributions from non-Astra interests

"The outlook for the rest of the year is positive for Astra, although its results may be tempered by increasing competition in the car market and soft demand in the motorcycle market. The Group's Direct Motor Interests and Other Interests will continue to face challenges."

Ben Keswick, Chairman

4th August 2017

The exchange rate of US$1=S$1.38 (31st December 2016: US$1=S$1.44) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.40 (30th June 2016: US$1=S$1.38) was used for translating the results for the period.

The financial results for the six months ended 30th June 2017 and 30th June 2016 have been prepared in accordance with International Financial Reporting Standards. These results have not been audited or reviewed by the auditors.

#The Group uses 'underlying profit' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in Note 4 to the financial statements. Management considers this to be a key measure which provides additional information to enhance understanding of the Group's underlying business performance.

* The Singapore currency equivalent is an estimate as the actual amount will be determined on Books Closure Date referred to in Note 11.

CHAIRMAN'S STATEMENT

Overview

Jardine Cycle & Carriage produced a good result for the first half of 2017 as strong performances from Astra's businesses more than compensated for weaker results from the Group's Direct Motor Interests and Other Interests.

Performance

The Group's revenue in the first half was US$8.5 billion, 11% up on the previous year, with increases in most of Astra's businesses. The Group's underlying profit grew by 13% to US$375 million. Profit attributable to shareholders was US$399 million, an increase of 22%, after accounting for non-trading gains of US$24 million, which primarily comprised fair value gains on an investment held by an associate and on an investment property. Earnings per share rose 22% to US¢101.

Astra contributed US$315 million to the Group's underlying profit, an increase of 27%. The Group's Direct Motor Interests contributed US$63 million, a decline of 20%, while the Group's Other Interests contributed US$8 million, 46% down on the previous year.

The Group's net cash, excluding net borrowings within Astra's financial services subsidiaries, was US$291 million at the end of June compared to US$709 million at the end of 2016. The reduction was mainly due to investments made by Astra in toll roads, a power plant and property, together with the Company's participation in the rights issue of Siam City Cement. Net debt within Astra's financial services subsidiaries was US$3.7 billion, similar to the end of 2016. JC&C's parent net cash was US$14 million, compared to US$154 million at the end of 2016 following its subscription for Siam City Cement's rights issue at US$127 million.

The Board has declared an interim one-tier tax exempt dividend of US¢18 per share (2016: US¢18 per share).

Group Review

Astra

Astra reported a net profit equivalent to US$702 million under Indonesian accounting standards, 31% up in its local currency, with increases in most businesses. The group's automotive businesses achieved improved market shares for both cars and motorcycles. The results from its financial services businesses improved with a return to profit by Permata Bank. There were good performances from heavy equipment and mining, as well as the group's agribusiness activities, as they benefited from higher commodity prices.

Automotive

Net income from Astra's automotive business increased by 9% to US$315 million, largely due to higher car sales, which continued to benefit from new model introductions, including those in the second half of 2016, although price competition increased.

The wholesale market for cars increased marginally to 534,000 units. Astra's car sales were 9% higher at 298,000 units, resulting in an increase in market share from 51% to 56%. The wholesale market for motorcycles reduced by 9% to 2.7 million units, while Astra Honda Motor's domestic sales fell by 7% to 2.0 million units, resulting in its market share rising from 73% to 74%.

Net income of Astra Otoparts, the group's components business, increased 30% to US$15 million, mainly due to higher earnings contributions from its joint venture and associated companies.

Financial Services 

Net income from Astra's financial services business increased 62% to US$153 million, with improved contributions from operations.

The group's consumer finance businesses saw an 8% increase in the amount financed, including amounts financed through joint bank financing without recourse, to US$2.9 billion. Car-focused Astra Sedaya Finance reported a 6% increase in net income at US$34 million, while Toyota Astra Financial Services recorded a stable profit of US$12 million. Motorcycle-focused Federal International Finance's net income was 15% higher at US$70 million, benefiting from Honda's improved market share and loan product diversification.

The amount financed through the group's heavy equipment-focused finance operations increased by 68% to US$237 million. Net income at Surya Artha Nusantara Finance, which specialises in small and medium size heavy equipment financing, was lower at US$2 million.

Astra's 44.6%-held joint venture, Permata Bank, reported a net income of US$47 million compared with a net loss of US$62 million in the same period in 2016. The bank's gross non-performing loan ratio declined from 8.8% at the end of 2016 to 4.7% at the end of June 2017, while its net non-performing loan ratio also declined from 2.2% to 1.8%. The improved performance of Permata Bank was mainly driven by an improvement in asset quality and the sale of a portfolio of its non-performing loans as planned. In June 2017, the bank completed a further US$220 million rights issue, which was fully subscribed.

Asuransi Astra Buana, the group's general insurance company, reported net income 24% higher at US$38 million, primarily due to higher underwriting and investment income.

During the period, the group's life insurance joint venture, Astra Aviva Life, acquired some 123,000 new individual life customers and 224,000 new participants for its corporate employee benefits programmes, bringing the respective totals to 304,000 and 652,000 at the end of the first half of 2017.

Heavy Equipment and Mining

The net income contribution from Astra's heavy equipment and mining business increased by 83% to US$154 million.

United Tractors, which is 59.5%-owned, reported net income 85% higher at US$257 million, mainly due to improved performances in its construction machinery, mining contracting and mining operations, all of which benefited from higher coal prices.

In its construction machinery business, Komatsu heavy equipment sales were up 69% to 1,751 units, while parts and service revenues were also higher. The mining contracting operations of Pamapersada Nusantara recorded a 4% increase in coal production at 52 million tonnes, while overburden removal was 6% higher at 360 million bank cubic metres. United Tractors' mining subsidiaries reported 18% lower coal sales at 3.6 million tonnes.

General contractor Acset Indonusa, a 50.1% subsidiary of United Tractors, reported net income up 95% at US$5 million, with US$536 million in new contracts secured during the period, compared with US$178 million secured in the first half of 2016.

The group's 25%-owned Bhumi Jati Power, which is constructing two 1,000 MW power plants in Central Java, is scheduled to start commercial operations in 2021.

Suprabari Mapanindo Mineral, an 80%-owned coking coal company in Central Kalimantan, is expected to start production by the end of 2017.

Agribusiness

Net income from Astra's agribusiness increased by 32% to US$62 million.

Astra Agro Lestari, which is 79.7%-owned, reported net income of US$78 million, up from US$59 million in the first half of 2016, due to improved revenue from higher crude palm oil prices and increased production. Average crude palm oil prices achieved were 16% higher at Rp8,536/kg, while sales of crude palm oil and its derivatives were 10% higher at 833,000 tonnes compared to the same period last year.

Infrastructure and Logistics

The profit contribution from Astra's infrastructure and logistics business decreased by 21% to US$8 million, mainly due to initial losses arising from the operational commencement of the Cikopo-Palimanan toll road and lower earnings from its water utility business.

The group continues to expand its toll road interests which, including interests in 51km of greenfield sites, now extend to 353 km. The 79.3%-owned 72km Tangerang-Merak toll road saw traffic volumes increase by 4% to 24 million vehicles during the period. Construction continues at the wholly-owned 41km Jombang-Mojokerto toll road, where 20km is already operational. The group now owns 45% of the fully operational 116km Cikopo-Palimanan toll road, and has also increased its stake from 25% to 40% in the 73km Semarang-Solo toll road.

PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, experienced a 3% lower sales volume at 78 million cubic metres.

Serasi Autoraya's net income increased by 82% to US$6 million, due to higher net margins in its car leasing and rental business, despite a 5% decline in vehicles under contract.

Information Technology

Net income from Astra's information technology business was 25% lower at US$4 million. Astra Graphia, which is 76.9%-owned, reported a 25% decrease in net income to US$5 million, mainly due to lower revenue from its IT solutions business.

Property

Net income from Astra's property business at US$5 million was 94% higher, mainly due to higher development earnings recognised on its Anandamaya Residences development under Indonesian accounting standards. The project is scheduled for completion in 2018.

Direct Motor Interests

The Group's Direct Motor Interests contributed an underlying profit of US$63 million, 20% down on the previous year. The reduction was due largely to lower earnings in the automotive activities of Truong Hai Auto Corporation in Vietnam following a decrease in unit sales and increased competition, which was partly offset by a contribution from its real estate business. Cycle & Carriage Singapore's earnings rose due to higher unit sales and an improvement in its used car business. In Malaysia, Cycle & Carriage Bintang's profit suffered from intense price competition in the premium car market. In Indonesia, Tunas Ridean's earnings were down as lower profits from its motor vehicles and finance activities were partly offset by stronger contributions from the motorcycle and rental businesses.

Other Interests

The Group's Other Interests comprising 25.5%-held Siam City Cement in Thailand and 22.9%-held Refrigeration Electrical Engineering Corporation ("REE") in Vietnam contributed a profit of US$8 million, a decline of 46%.

Siam City Cement's profit was 69% down in its reporting currency, due mainly to lower prices and sales volumes in Thailand and one-off expenses, partly offset by contributions from recently acquired operations in Sri Lanka and Vietnam. In May 2017, the Company supported Siam City Cement's rights issue, which raised approximately US$500 million, following which the Company increased its interest to 25.5%.

REE's contribution based on its first quarter performance was significantly higher than the same period in the previous year due to improvements in its M&E, real estate, and power and water distribution businesses. REE's second quarter results are not expected to have a material impact to the Group and will be accounted for in the third quarter.

Outlook

The outlook for the rest of the year is positive for Astra, although its results may be tempered by increasing competition in the car market and soft demand in the motorcycle market. The Group's Direct Motor Interests and Other Interests will continue to face challenges.

Ben Keswick

Chairman

4th August 2017

Statement pursuant to Rule 705(5) of the Listing Manual

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 2017 to be false or misleading in any material respect.

On behalf of the Directors

Ben Keswick

Director

James Watkins

Director

4th August 2017

For the three months ended 30th June 2017

For the six months ended 30th June 2017