JDS.L Regulatory News (JDS)

14 Nov 2007 09:29

Jardine Strategic Hldgs Ld14 November 2007 To: Business Editor 14th November 2007 For immediate release Jardine Cycle & Carriage Limited2007 Third Quarter Financial Statements and Dividend Announcement The following announcement was issued today by the Company's 65%-owned subsidiary, Jardine Cycle & Carriage Limited. For further information, please contact: Jardine Matheson LimitedNeil M McNamara (852) 2843 8227 Matheson & Co., Limited Philip Hawkins (020) 7816 8136 GolinHarrisKennes Young (852) 2501 7987 Weber Shandwick FinancialRichard Hews/ Hannah Marwood (020) 7067 0700 14 November 2007 JARDINE CYCLE & CARRIAGE LIMITED2007 THIRD QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights • Underlying earnings per share increase 61% to USc76.90 • Astra's motor vehicle sales up 29%, but motorcycle sales decline • Strong growth from Astra's non-motor businesses • Good performance in Singapore motor operations "High palm oil prices, the low interest rate environment and recovery in the automotive market in Indonesia are expected to continue to have a positive impact on the Group's results for the remainder of the year." Anthony Nightingale, Chairman14 November 2007 Group Results -------------------------------------------------------------------------- Nine months ended 30 September-------------------------------------------------------------------------- 2007 2006 Change 2007 US$m US$m % S$m--------------------------------------------------------------------------Revenue 6,529 5,310 23 9,930Underlying profit attributable to shareholders 265 162 64 403Profit attributable to shareholders 267 163 64 406-------------------------------------------------------------------------- USc USc Sc--------------------------------------------------------------------------Underlying earnings* per share 76.90 47.88 61 116.97Earnings per share 77.48 48.24 61 117.84Interim dividend per share (gross) 11.00 3.00 267 16.79(Rebalanced)**-------------------------------------------------------------------------- At At At 30.9.07 31.12.06 Change 30.9.07 US$m US$m % S$m-------------------------------------------------------------------------- Shareholders' funds 2,101 1,906 10 3,131-------------------------------------------------------------------------- US$ US$ S$--------------------------------------------------------------------------Net asset value per share 6.06 5.56 9 9.03-------------------------------------------------------------------------- The exchange rate of US$1=S$1.49 (31.12.2006: US$1=S$1.54) was used fortranslating assets and liabilities at the balance sheet date and US$1=S$1.52(30.9.2006: US$1=S$1.60) was used for translating the results for the period. The financial results for the nine months ended 30 September 2007 have beenprepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors. * The basis for calculating underlying earnings is set out in Note 5 of thisreport. ** The proportion of dividend payable announced at half year was rebalanced toapproximate one third of the anticipated total for the full year. CHAIRMAN'S STATEMENT Overview Trading conditions continued to improve due to the low interest rateenvironment, and ongoing recovery in the automotive markets in Indonesia andhigher palm oil prices. Performance The Group's underlying profit after tax and minority interests for the ninemonths ended 30 September 2007 rose by 64% to US$265 million. Underlyingearnings per share grew by 61% to USc76.90. Astra's contribution to the Group's underlying profit was US$251 million, 55% higher than the same period last year. Consolidated net debt excluding financial services at 30 September 2007 wasUS$234 million, US$366 million lower than at the end of 2006 due to strongoperating cashflows. Debt within the Group's financial services activities atUS$1,266 million was US$236 million lower than the prior year end following areduction in joint financing with recourse. The Company's net debt was US$106million, US$47 million below the previous year end. The Board does not propose to declare a dividend for the three months ended 30September (30 September 2006: Nil). Group Review Astra Astra continued to perform well with improved earnings in most of its majorbusinesses, other than its motorcycle operations. The contribution from Astra's automotive businesses grew by 34% overall due tothe ongoing market recovery. The Indonesian wholesale motor vehicle market roseby 36% to 318,000 units in the nine months to September. Astra's sales in theperiod grew at a lesser rate of 29% to 164,000 units, leading to its marketshare reducing from 54% to 51%. The wholesale motorcycle market grew by 9% toreach 3.4 million units in the first nine months, but the sales of associate,Astra Honda Motor, declined by 8% to 1.5 million units due to intensecompetition. Its market share was down from 52% to 44%. Astra's automotivecomponent business performed well. Astra's non-automotive businesses continued to perform strongly, with an 80%growth in contribution. Its financial services activities benefited fromimprovements in the automotive sector, with the volume financed by FederalInternational Finance and Astra Credit Companies increasing by 17%. At 30September 2007, the financial services' loan book stood at US$1.7 billion, downfrom US$2 billion at the end of 2006 despite an increase in volume financed asthe loans repaid exceeded the amount of the new loans. The charge for doubtfuldebts was reduced by 11% and losses incurred on repossessed assets fell by 35%.The results of Bank Permata also improved as it achieved higher net interestmargins and lower operating expenses. The contribution from Astra's agribusiness was more than double that of thefirst nine months of 2006, benefiting from a 66% rise in crude palm oil priceswhich more than offset a 10% reduction in palm oil production. United Tractor'sheavy equipment business was strongly ahead as Komatsu sales were 59% higher at2,600 units, reflecting strong growth in the mining, forestry, agriculture andconstruction industries in Indonesia. Mining subsidiary, Pamapersada Nusantara,overcame earlier setbacks caused by adverse weather and operationalinterruptions and achieved a 25% increase in coal extracted, although overburdenremoval was flat. It also benefited from the writeback of a bad debt provision. Motors The profit contribution from the Group's directly owned motor interests was 48%higher, primarily due to good results in Singapore arising from higher marginsand improved demand for Mercedes-Benz vehicles. The Group's 37%-owned associate,Tunas Ridean, also benefited from the recovery in the Indonesian automotivemarket, but Cycle & Carriage Bintang continued to struggle as trading conditionsin Malaysia remained difficult. Prospects High palm oil prices, the low interest rate environment and recovery in the automotive market in Indonesia are expected to continue to have a positive impact on the Group's results for the remainder of the year. Anthony NightingaleChairman14 November 2007 Statement pursuant to Rule 705(4) of the Listing Manual The directors confirm that, to the best of their knowledge, nothing has come tothe attention of the Board of Directors which may render the accompanyingunaudited interim financial results for the nine months ended 30 September 2007to be false or misleading in any material respect. On behalf of the Directors Anthony NightingaleDirector Hassan AbasDirector 14 November 2007 ---------------------------------------------------------------------------------------------Jardine Cycle & Carriage Limited Consolidated Profit and Loss Account --------------------------------------------------------------------------------------------- Three months ended Nine months ended 30.9.07 30.9.06 Change 30.9.07 30.9.06 Change Note US$m US$m % US$m US$m % Revenue 2,400.4 1,795.7 34 6,528.6 5,309.7 23Cost of sales (1,860.0) (1,414.4) 32 (5,132.1) (4,218.2) 22 ------- ------ ------- ------Group profit 540.4 381.3 42 1,396.5 1,091.5 28 Other operating income 31.1 24.0 30 102.1 98.2 4Selling and distribution expenses (119.2) (152.5) -22 (368.4) (435.9) -15Administrative expenses (130.3) (105.4) 24 (369.2) (315.6) 17Other operating expenses (7.2) (1.6) 350 (14.1) (6.9) 104 ------- ------ ------- ------Operating profit 314.8 145.8 116 746.9 431.3 73 ------- ------ ------- ------Financing charges (19.4) (26.0) -25 (63.8) (67.0) -5Financing income 8.7 11.1 -22 25.1 31.8 -21 ------- ------ ------- ------Net financing charges (10.7) (14.9) -28 (38.7) (35.2) 10 Share of associates' and joint ventures' results after tax 58.4 56.9 3 148.8 129.1 15 ------- ------ ------- ------Profit before tax 2 362.5 187.8 93 857.0 525.2 63Tax 3 (94.0) (37.0) 154 (221.0) (127.7) 73 ------- ------ ------- ------Profit after tax 268.5 150.8 78 636.0 397.5 60 ======= ====== ======= ====== Profit attributable to:Shareholders 113.1 64.4 76 266.6 163.0 64Minority interests 155.4 86.4 80 369.4 234.5 58 ------- ------ ------- ------ 268.5 150.8 78 636.0 397.5 60 ======= ====== ======= ======--------------------------------------------------------------------------------------------- USc USc USc USc--------------------------------------------------------------------------------------------- Earnings per share 4 - basic 32.61 18.93 72 77.48 48.24 61 - diluted 32.60 18.92 72 77.45 48.21 61--------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Balance Sheet--------------------------------------------------------------------------------------------- At At Note 30.9.07 31.12.06 US$m US$mNon-current assetsIntangible assets 506.1 457.7Leasehold land use rights 417.8 429.9Property, plant and equipment 1,264.9 1,274.4Investment properties 27.6 33.0Plantations 483.9 460.1Interests in associates and joint ventures 1,455.7 1,372.3Other investments 115.0 99.8Non-current debtors 816.6 963.1Deferred tax assets 57.0 57.6Other non-current assets 50.9 71.5 --------- --------- 5,195.5 5,219.4 --------- ---------Current assets Stocks 536.7 613.2Current debtors 1,912.7 1,694.8Current tax assets 126.5 123.6Current investments 21.0 3.0Bank balances and other liquid funds --------- ---------- non-financial services companies 528.8 395.6- financial services companies 153.9 172.8 --------- --------- 682.7 568.4 --------- --------- 3,279.6 3,003.0Non-current assets classified as held for sale 6 23.2 2.2 --------- --------- 3,302.8 3,005.2 --------- --------- Total assets 8,498.3 8,224.6 --------- ---------Non-current liabilitiesProvisions 19.1 15.5 Long-term borrowings 7 --------- ---------- non-financial services companies 271.0 325.0- financial services companies 589.3 722.7 --------- --------- 860.3 1,047.7Deferred tax liabilities 287.7 299.6Other non-current liabilities 173.0 179.7 --------- --------- 1,340.1 1,542.5Current liabilities --------- ---------Provisions 27.3 26.3Current borrowings 7 --------- ---------- non-financial services companies 493.7 675.3- financial services companies 831.9 953.9 --------- --------- 1,325.6 1,629.2Current tax liabilities 120.5 36.3Dividend payable 32.0 -Current creditors 1,173.4 935.1 --------- --------- 2,678.8 2,626.9Liabilities directly associated with non-current assets classified as held for sale 6 0.1 - --------- --------- 2,678.9 2,626.9 --------- ---------Total liabilities 4,019.0 4,169.4 --------- --------- --------- ---------Net assets 4,479.3 4,055.2 --------- ---------EquityShare capital 8 531.0 495.7Fair value and other reserves 9 322.8 330.2Revenue reserve 10 1,247.6 1,079.7 --------- --------- Shareholders' funds 2,101.4 1,905.6Minority interests 11 2,377.9 2,149.6 --------- ---------Total equity 4,479.3 4,055.2 --------- --------- ---------------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Statement of Recognised Income and Expense--------------------------------------------------------------------------------------------- Three months ended Nine months ended 30.9.07 30.9.06 30.9.07 30.9.06 US$m US$m US$m US$m Revaluation surplus of land and buildings, net of tax - 1.8 0.7 1.8 Fair value changes of available-for-sale investments, net of tax (0.5) 5.7 (13.1) 11.2 Fair value changes of hedging derivatives, net of tax (0.1) - (0.7) - Actuarial gain/(loss) on defined benefit pension plans, net of tax 0.1 (3.3) (2.6) (10.3) Translation difference (35.1) 25.1 (43.8) 205.6 ------ ----- ----- ------ Net gain/(loss) recognised directly in equity (35.6) 29.3 (59.5) 208.3 Profit after tax 268.5 150.8 636.0 397.5 ------ ----- ----- ------ Total recognised income and expense for the period 232.9 180.1 576.5 605.8 ====== ====== ===== ====== Total recognised income andexpense attributable to: Shareholders of the Company 96.6 78.3 239.3 257.5 Minority interests 136.3 101.8 337.2 348.3 ------ ----- ----- ------ 232.9 180.1 576.5 605.8 ====== ===== ===== ====== ---------------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedCompany Balance Sheet--------------------------------------------------------------------------------------------- At At Note 30.9.07 31.12.06 US$m US$mNon-current assetsProperty, plant and equipment 0.6 0.9Interests in subsidiaries 1,238.4 1,202.0Interests in associates 49.3 47.8 ------- ------- 1,288.3 1,250.7 ------- -------Current assetsCurrent debtors 10.8 20.0Bank balances and other liquid funds 1.5 29.1 ------- ------- 12.3 49.1 ------- ------- Non current assets held for sale 6 9.7 - ------- -------Total assets 1,310.3 1,299.8 ------- -------Non-current liabilitiesDeferred tax liabilities 0.3 0.4 ------- ------- 0.3 0.4 ------- ------- Current liabilitiesCurrent borrowings 107.4 182.4Current tax liabilities 0.8 0.8Dividend payable 32.0 -Current creditors 70.3 70.1 ------- ------- 210.5 253.3 ------- ------- Total liabilities 210.8 253.7 ------- ------- Net assets 1,099.5 1,046.1 ======= ======= Equity Share capital 8 531.0 495.7Share option reserve 9 0.3 0.3Revenue reserve 10 568.2 550.1 ------- ------- 1,099.5 1,046.1 ======= ======= Net asset value per share US$3.17 US$3.05 ---------------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedCompany Statement of Recognised Income and Expense--------------------------------------------------------------------------------------------- Three months ended Nine months ended 30.9.07 30.9.06 30.9.07 30.9.06 US$m US$m US$m US$m Translation difference 30.0 0.9 32.2 41.9 ----- ------ ------ ------Profit recognised directly in equity 30.0 0.9 32.2 41.9 Profit after tax (3.2) 19.8 64.9 78.3 ----- ------ ------ ------Total recognised income andexpense for the period 26.8 20.7 97.1 120.2 ===== ====== ====== ====== Total recognised income andexpense attributable to: Shareholders of the Company 26.8 20.7 97.1 120.2 ===== ====== ====== ====== ---------------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Statement of Cash Flows--------------------------------------------------------------------------------------------- Three months ended Nine months ended 30.9.07 30.9.06 30.9.07 30.9.06 Note US$m US$m US$m US$m Cash flows from operating activities 12 389.0 405.0 1,172.7 1,224.8 Cash generated from operations ------- ------ ------- -------Interest paid (28.6) (19.8) (69.7) (61.2)Interest received 7.6 10.3 25.0 29.4Other finance costs paid (0.9) (0.7) (3.7) (0.8)Income tax paid (60.2) (68.2) (147.6) (229.5) ------- ------ ------- ------- (82.1) (78.4) (196.0) (262.1) ------- ------ ------- -------Net cash flows from operating activities 306.9 326.6 976.7 962.7 Cash flows from investing activities ------- ------ ------- -------Sale of investment properties 1.5 - 1.5 -Sale of leasehold land use rights 0.3 0.2 10.0 8.2Sale of property, plant and equipment 12.8 11.7 35.7 35.7Sale of subsidiaries, net of cash disposed - (0.9) - (28.2)Sale of shares in associates and joint ventures 1.6 - 6.7 -Sale of other investments 1.4 - 8.4 -Purchase of intangible assets (15.9) - (63.7) -Purchase of leasehold land use rights (3.1) (2.1) (6.6) (5.9)Purchase of property, plant and equipment (61.5) (74.8) (187.0) (298.4)Purchase of plantations (13.9) (4.9) (29.6) (13.1)Purchase of subsidiaries, net of cash acquired (0.1) (3.3) 4.5 (6.8)Purchase of shares in associates and joint ventures - (142.6) - (174.3)Purchase of other investments (20.8) (8.7) (46.4) (8.7)Capital repayment of other investments 5.3 1.6 8.3 2.1Dividends received from associates and joint ventures (net) 0.3 1.4 19.3 116.9 ------- ------ ------- -------Net cash flows used in investing activities (92.1) (222.4) (238.9) (372.5) Cash flows from financing activities------- ------ ------- -------Proceeds from issue of shares - - 0.1 0.1Drawdown of loans 469.4 610.4 1,398.3 1,843.7Repayment of loans (607.6) (688.4) (1,902.7) (2,280.7)Investment by minority interests - - - 9.4Dividends paid to minority interests (62.7) (102.6) (109.5) (138.2)Dividends paid (net) (12.4) (9.9) (12.4) (9.9) ------- ------ ------- -------Net cash flows used in financing activities (213.3) (190.5) (626.2) (575.6) ------- ------ ------- ------- Net change in cash and cash equivalents 1.5 (86.3) 111.6 14.6Cash and cash equivalents at the beginning of the period 661.6 607.3 551.9 491.0Effect of exchange rate changes (2.9) 7.0 (3.3) 22.4 ------- ------- ------- -------Cash and cash equivalents at the end of the period 660.2 528.0 660.2 528.0 ======= ======= ======= ======= --------------------------------------------------------------------------------------------- Jardine Cycle & Carriage LimitedNotes--------------------------------------------------------------------------------------------- 1 Basis of preparation The financial statements are consistent with those set out in the 2006 audited accounts which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). There have been no changes to the accounting policies described in the 2006 audited accounts except for the adoption of the amendment, new standard and interpretations to existing standards shown below: Amendment to IAS 1 Capital Disclosure IFRS 7 Financial Instruments: Disclosures IFRIC 8 Scope of IFRS 2 Share-based Payment IFRIC 9 Reassessment of Embedded Derivatives IFRIC 10 Interim Financial Reporting and Impairment The adoption of the amendment, new standard and interpretations did not have a material impact on the results of the Group. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting polices. Estimates and judgments used in preparing the financial statements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. 2 Profit before tax Group Three months ended Nine months ended 30.9.07 30.9.06 Change 30.9.07 30.9.06 Change US$m US$m % US$m US$m % Profit before tax is determined after including: Depreciation of property, plant and equipment (65.0) (56.4) 15 (190.4) (161.6) 18 Amortisation of leasehold land use rights and intangible assets (8.7) (3.7) 135 (22.2) (10.9) 104 Fair value changes of financial derivative contracts 8.2 0.9 811 8.5 (3.5) nm Profit/(loss) on disposal of: - leasehold land use rights (0.5) 0.2 nm 6.8 3.9 74 - property, plant and equipment 7.7 3.6 114 12.4 8.0 55 - repossessed assets (22.3) (27.3) -18 (52.0) (79.5) -35 - subsidiaries - - - (1.5) 7.2 nm - associates and joint ventures 0.5 - 100 (2.1) - 100 Reversal of write-down/ (write-down) of stocks 0.2 4.0 -95 (1.8) 1.1 nm Impairment of debtors (9.4) (25.5) -63 (56.6) (89.2) -37 Provision for warranty and goodwill claims (0.5) (2.5) -80 (4.9) (6.8) -28 Net exchange gain/(loss) (6.6) (1.0) 560 (9.2) 17.3 nm Excess of net fair value of identified assets, liabilities and contingent liabilities acquired over cost of business combination 0.1 - 100 9.0 0.2 nm ====== ====== ====== ====== nm: not meaningful 3 Tax The provision for income tax is based on the statutory tax rates of the respective countries in which the companies operate after taking into account non-deductible expenses and group tax relief. 4 Earnings per share Group Three months ended Nine months ended 30.9.07 30.9.06 30.9.07 30.9.06 US$m US$m US$m US$m Basic earnings per share Profit attributable to shareholders 113.1 64.4 266.6 163.0 Weighted average number of ordinary shares in issue (millions) 346.8 340.2 344.1 337.9 Basic earnings per share USc32.61 USc18.93 USc77.48 USc48.24 ======== ======== ======== ======== Diluted earnings per share Profit attributable to shareholders 113.1 64.4 266.6 163.0 Weighted average number of ordinary shares in issue (millions) 346.8 340.2 344.1 337.9 Adjustment for assumed conversion of share options (millions) 0.1 0.2 0.1 0.2 -------- -------- -------- ------- Weighted average number of ordinary shares for diluted earnings per share (millions) 346.9 340.4 344.2 338.1 ======== ======== ======== ======== Diluted earnings per share USc32.60 USc18.92 USc77.45 USc48.21 ======== ======== ======== ======== Underlying earnings per share Underlying profit attributable to shareholders (Note 5) 112.3 64.4 264.6 161.8 Basic underlying earnings per share USc32.38 USc18.93 USc76.90 USc47.88 ======== ======== ======== ======== Diluted underlying earnings per share USc32.37 USc18.92 USc76.87 USc47.86 ======== ======== ======== ======== 5 Underlying profit attributable to shareholders A reconciliation of the profit attributable to shareholders and underlying profit attributable to shareholders is as follows: Group Three months ended Nine months ended 30.9.07 30.9.06 30.9.07 30.9.06 US$m US$m US$m US$m Profit attributable to shareholders 113.1 64.4 266.6 163.0 Less: Non-trading items (net of tax and minority interests) ------ ------- ------ ------- Excess of net fair value of identified assets, liabilities and contingent liabilities acquired over cost of business combination - - 4.0 - Loss on disposal of associates 0.1 - (1.2) - Loss on disposal of a subsidiary - - (1.5) - Profit on disposal of surplus Malaysian properties 0.2 - 0.2 1.2 Profit on disposal of other investments 0.5 - 0.5 - ------ ------- ------ ------- 0.8 - 2.0 1.2 ------ ------- ------ ------- Underlying profit attributable to shareholders 112.3 64.4 264.6 161.8 ====== ======= ====== ======= The underlying profit attributable to shareholders by business is shown below: Group Three months ended Nine months ended 30.9.07 30.9.06 Change 30.9.07 30.9.06 Change US$m US$m % US$m US$m % Astra Total automotive 49.5 39.2 26 129.3 96.6 34 ------ ------ ------ ------ Agribusiness 26.2 14.0 87 56.3 27.4 105 Financial services 20.9 7.7 171 49.1 26.4 86 Heavy equipment 18.6 9.9 88 37.1 24.4 52 Other non-automotive 2.3 (3.3) nm 5.0 3.8 32 ------ ------ ------ ------ Total non-automotive 68.0 28.3 140 147.5 82.0 80 Corporate costs and others (11.0) (6.3) 75 (23.3) (18.5) 26 ------ ------ ------ ------ Trading profit 106.5 61.2 74 253.5 160.1 58 Forex (2.0) 0.2 nm (2.1) 1.6 nm ------ ------ ------ ------ 104.5 61.4 70 251.4 161.7 55 ------ ------ ------ ------ Motors Singapore 9.0 6.8 32 23.6 18.6 27 Malaysia 0.3 0.2 50 1.5 0.8 88 Indonesia (Tunas Ridean) 2.3 0.4 475 5.4 1.2 350 ------ ------ ------ ------ 11.6 7.4 57 30.5 20.6 48 ------ ------ ------ ------ Corporate costs and others (3.8) (4.4) -14 (10.7) (13.1) -18 Withholding tax on dividends from Indonesia - - - (6.6) (7.4) -11 ------ ------ ------ ------ (3.8) (4.4) -14 (17.3) (20.5) -16 ------ ------ ------ ------ Underlying profit attributable to shareholders 112.3 64.4 74 264.6 161.8 64 ====== ====== ====== ====== nm: not meaningful 6 Non-current assets held for sale and directly associated liabilities Group Company At At At At 30.9.07 31.12.06 30.9.07 31.12.06 US$m US$m US$m US$m Non-current assets held for sale: Property, plant and equipment - 0.2 - - Investment property 6.9 2.0 - - Interests in associates and joint ventures 6.6 - - - Debtors 9.7 - 9.7 - ------- ----- ------- ----- Total assets 23.2 2.2 9.7 - ======= ===== ======= ===== Liabilities directly associated with non-current assets held for sale: Creditors 0.1 - - - ------- ----- ------- ----- Total liabilities 0.1 - - - ======= ===== ======= ===== On 4 October 2007, the Group completed the sale of its 40% interest in Ampang Investments Pte Ltd, an investment holding company whose principal investment is the Concorde Hotel in Malaysia, in line with the Group's strategy of exiting from its non-core activities and focusing on its core automotive businesses. 7 Borrowings Group At At 30.9.07 31.12.06 US$m US$m Long-term borrowings: - secured 566.4 519.4 - unsecured 293.9 528.3 -------- -------- 860.3 1,047.7 -------- -------- Current borrowings: - secured 672.2 502.8 - unsecured 653.4 1,126.4 -------- -------- 1,325.6 1,629.2 -------- -------- Total borrowings 2,185.9 2,676.9 ======== ======== Certain subsidiaries of the Group have pledged their assets in order to obtain bank facilities from financial institutions. The value of assets pledged was US$1,062.1 million (31.12.06: US$944.5 million). 8 Share capital Company Three months ended 30 September 2007 2006 US$m US$m Share capital: Balance at 1 July 495.8 459.5 Issue of shares 35.2 30.4 ------- -------- Balance at 30 September 531.0 489.9 ======= ======== Nine months ended 30 September 2007 2006 US$m US$m Share capital: Balance at 1 January 495.7 185.4 Issue of shares 35.3 30.5 Transfer from share premium - 274.0 -------- -------- Balance at 30 September 531.0 489.9 ======== ======== Share premium: Balance at 1 January - 274.0 Transfer to share capital - (274.0) -------- -------- Balance at 30 September - - ======== ======== Pursuant to the abolition of par or nominal value of share capital in the Companies (Amendment) Act 2005 which took effect on 30 January 2006, the amount in share premium has become part of the Company's share capital. 9 Fair value and other reserves Group Company At At At At 30.9.07 30.9.06 30.9.07 30.9.06 US$m US$m US$m US$m Composition: -------------- Fair value reserve 2.2 6.4 - - Asset revaluation reserve 318.1 303.0 - - Hedging reserve (1.1) - - - Share option reserve 0.3 0.3 0.3 0.3 Other reserve 3.3 3.4 - - ------- ------- ------- ------ 322.8 313.1 0.3 0.3 ======= ======= ======= ====== Group Company Three months ended 30 September 2007 2006 2007 2006 US$m US$m US$m US$m Movements: ------------ Fair value reserve Balance at 1 July 2.5 3.6 - - Fair value changes of available-for-sale investments, net of tax (0.3) 2.8 - - ------- ------- ------- ------- Balance at 30 September 2.2 6.4 - - ======= ======= ======= ======= Asset revaluation reserve Balance at 1 July 318.1 302.0 - - Revaluation surplus of land and buildings, net of tax - 0.9 - - Reserve realised on and buildings - 0.1 - - ------- ------- ------- ------- Balance at 30 September 318.1 303.0 - - ======= ======= ======= ======= Hedging reserve Balance at 1 July (1.0) - - - Fair value changes of derivatives, net of tax (0.1) - - - ------- ------- ------- ------- Balance at 30 September (1.1) - - - ======= ======= ======= ======= Share option reserve Balance at 1 July 0.3 0.3 0.3 0.3 ------- ------- ------- ------- Balance at 30 September 0.3 0.3 0.3 0.3 ======= ======= ======= ======= Other reserve Balance at 1 July 3.3 3.4 - - ------- ------- ------- ------- Balance at 30 September 3.3 3.4 - - ======= ======= ======= ======= Group Company Nine months ended 30 September 2007 2006 2007 2006 US$m US$m US$m US$m Movements: ------------ Fair value reserve Balance at 1 January 9.5 1.2 - - Fair value changes of available-for-sale investments, net of tax (7.3) 5.2 - - ------- ------- ------- ------- Balance at 30 September 2.2 6.4 - - ======= ======= ======= ======= Asset revaluation reserve Balance at 1 January 317.9 302.0 - - Revaluation surplus of land and buildings, net of tax 0.3 0.9 - - Reserve realised on disposal of land and buildings (0.1) 0.1 - - ------- ------- ------- ------- Balance at 30 September 318.1 303.0 - - ======= ======= ======= ======= Hedging reserve Balance at 1 January (0.8) - - - Fair value changes of derivatives, net of tax (0.3) - - - ------- ------- ------- ------- Balance at 30 September (1.1) - - - ======= ======= ======= ======= Share option reserve Balance at 1 January 0.3 0.3 0.3 0.3 ------- ------- ------- ------- Balance at 30 September 0.3 0.3 0.3 0.3 ======= ======= ======= ======= Other reserve Balance at 1 January 3.3 3.8 - - Reserve realised on disposal of a subsidiary - (0.4) - - ------- ------- ------- ------- Balance at 30 September 3.3 3.4 - - ======= ======= ======= ======= 10 Revenue reserve Group Company At At At At 30.9.07 30.9.06 30.9.07 30.9.06 US$m US$m US$m US$m Composition: -------------- Translation reserve 48.0 28.0 185.4 119.2 Retained earnings 1,199.6 952.7 382.8 344.8 ------- ------- ------- ------- 1,247.6 980.7 568.2 464.0 ======= ======= ======= ======= Group Company Three months ended 30 September 2007 2006 2007 2006 US$m US$m US$m US$m Movements: ------------ Translation reserve Balance at 1 July 64.1 16.5 155.4 118.3 Translation difference (16.1) 11.5 30.0 0.9 ------- ------- ------- ------- Balance at 30 September 48.0 28.0 185.4 119.2 ======= ======= ======= ======= Retained earnings Balance at 1 July 1,118.1 898.0 417.6 333.3 Asset revaluation reserve realised on disposal of land and buildings - (0.1) - - Actuarial loss on defined benefit pension plans, net of tax - (1.3) - - Profit/(loss) attributable to shareholders 113.1 64.4 (3.2) 19.8 Dividends (net) (31.6) (8.3) (31.6) (8.3) ------- ------- ------- ------- Balance at 30 September 1,199.6 952.7 382.8 344.8 ======= ======= ======= ======= Group Company Nine months ended 30 September 2007 2006 2007 2006 US$m US$m US$m US$m Movements: ------------ Translation reserve Balance at 1 January 66.9 (63.3) 153.2 77.3 Translation difference (20.4) 88.2 32.2 41.9 Reserve realised on disposal of investments 1.5 3.1 - - ------- ------- ------- -------Balance at 30 September 48.0 28.0 185.4 119.2 ======= ======= ======= ======= Retained earnings Balance at 1 January 1,012.8 840.7 396.9 314.9 Asset revaluation reserve realised on disposal of land and buildings 0.1 (0.1) - - Other reserve realised on disposal of a subsidiary - 0.4 - -Actuarial loss on defined benefit pension plans, net of tax (1.1) (4.0) - -Gain on dilution of interests in investments - 1.1 - -Profit attributable to shareholders 266.6 163.0 64.9 78.3Dividends (net) (79.0) (48.4) (79.0) (48.4)Reserve realised on disposal of investments 0.2 - - - ------- ------- ------- -------Balance at 30 September 1,199.6 952.7 382.8 344.8 ======= ======= ======= ======= 11 Minority interests Group Three months ended 30 September 2007 2006 US$m US$m Balance at 1July 2,256.2 1,970.6 --------- --------- Revaluation surplus of land and buildings, net of tax - 0.9 Fair value changes of available-for-sale investments, net of tax (0.2) 2.9 Actuarial gain/(loss) on defined benefit pension plans, net of tax 0.1 (2.0) Translation difference (19.0) 13.6 --------- --------- Total gain/(loss) recognised directly in equity (19.1) 15.4 Profit for the period 155.4 86.4 --------- --------- Total recognised gain for the period 136.3 101.8 Dividends (net) (14.6) (27.3) Acquisition/disposal of subsidiaries - (4.2) --------- --------- Balance at 30 September 2,377.9 2,040.9 ========= ========= Nine months ended 30 September 2007 2006 US$m US$m Balance at 1 January 2,149.6 1,987.2 --------- --------- Revaluation surplus of land and buildings, net of tax 0.4 0.9 Fair value changes of hedging derivatives, net of tax (0.4) - Fair value changes of available-for-sale investments, net of tax (5.8) 6.0 Actuarial loss on defined benefit pension plans, net of tax (1.5) (6.3) Loss on dilution of interest in investments - (1.1) Translation difference (24.9) 114.3 --------- --------- Net gain/(loss) recognised directly in equity (32.2) 113.8 Profit for the period 369.4 234.5 --------- --------- Total recognised gain for the period 337.2 348.3 Dividends (net) (109.5) (138.2) Issue of shares - 9.4 Acquisition/disposal of subsidiaries 0.6 (165.8) --------- --------- Balance at 30 September 2,377.9 2,040.9 ========= ========= 12 Cash flows from operating activities Group Three months ended Nine months ended 30.9.07 30.9.06 30.9.07 30.9.06 US$m US$m US$m US$m Profit before tax 362.5 187.8 857.0 525.2 Adjustments for: ------- ------- ------- ------- Financing income (8.7) (11.1) (25.1) (31.8) Financing charges 19.4 26.0 63.8 67.0 Share of associates' and joint ventures' results (58.4) (56.9) (148.8) (129.1) Depreciation of property, plant & equipment 65.0 56.4 190.4 161.6 Amortisation of leasehold land use rights and intangible assets 8.7 3.7 22.2 10.9 (Profit)/loss on disposal of: - leasehold land use rights 0.5 (0.2) (6.8) (3.9) - property, plant and equipment (7.7) (3.6) (12.4) (8.0) - repossessed assets 22.3 27.3 52.0 79.5 - subsidiaries - - 1.5 (7.2) - associates and joint ventures (0.5) - 2.1 - Fair value changes of: - investment properties - - (0.4) 1.3 - plantations - (1.0) - (2.2) Write-down of stocks (0.2) (4.0) 1.8 (1.1) Impairment of debtors 9.4 25.5 56.6 89.2 Impairment of other investments - 0.1 - 0.1 Changes in provisions 2.7 3.2 8.2 9.7 Foreign exchange translation difference (5.2) 3.7 (0.7) (17.8) Excess of net fair value of identified assets, liabilities and contingent liabilities acquired over cost of business combination (0.1) - (9.0) (0.2) ------- ------- ------- ------- 47.2 69.1 195.4 218.0 ------- ------- ------- ------- Operating profit before working capital changes 409.7 256.9 1,052.4 743.2 Changes in working capital: ------- ------- ------- ------- Financing debtors (24.3) 81.5 90.2 512.6 Stocks 43.5 14.3 76.9 115.0 Debtors (73.1) (59.2) (286.6) (235.1) Creditors 31.1 107.6 233.3 85.2 Pensions 2.1 3.9 6.5 3.9 ------- ------- ------- ------- (20.7) 148.1 120.3 481.6 ------- ------- ------- ------- Cash flows from operating activities 389.0 405.0 1,172.7 1,224.8 ======= ======= ======= ======= 13 Interested person transactions Aggregate value of all interested person transactions Aggregate value of (excluding all interested transactions less person transactions than S$100,000 and conducted under transactions shareholders' conducted under mandate pursuant to shareholders' Rule 920 (excluding mandate pursuant transactions less Name of interested person to Rule 920) than S$100,000) --------------------------- ------------- -------------- US$m US$m Three months ended 30 September 2007 Jardine Matheson Limited - management consultancy services - 0.4 Jardine Matheson (Singapore) Ltd - rental of premises - 0.1 ------------- -------------- - 0.5 ============= ============== Nine months ended 30 September 2007 Jardine Matheson Limited - management consultancy services - 1.0 Jardine Matheson (Singapore)Ltd - rental of premises - 0.1 Jardine Engineering (Singapore) Pte Ltd - maintenance of air-conditioning equipment - 0.1 Director of the Company, Owen Howell-Price Owen Howell-Price* - sale of a motor vehicle 0.2 - - purchase of a motor vehicle 0.1 - ------------- -------------- 0.3 1.2 ============= ============== * transactions were entered into before retirement from the Board at the end of the AGM on 30 April 2007. 14 Issue of shares The number of shares that may be issued on conversion of all outstanding options granted pursuant to the CCL Executives' Share Option Schemes amounted to 149,000 as at 30 September 2007 (30.9.2006: 309,000). Between 1 July 2007 and 30 September 2007, 12,000 ordinary shares were issued for cash pursuant to the exercise of options granted under the CCL Executives' Share Option Schemes to subscribe for shares in the capital of the Company at the exercise price of S$1.664 per share. Except for those mentioned above, there were no other rights, bonus or equity issues during the period between 1 July 2007 and 30 September 2007. 15 Others The results do not include any pre-acquisition profits and have not been affected by any item, transaction or event of a material or unusual nature other than the non-trading items shown in Note 5 of this report. No significant transaction or event has occurred between 1 October 2007 and the date of this report, except that on 4 October 2007, the Group completed the sale of its 40% interest in Ampang Investments Pte Ltd, an investment holding company whose principal investment is the Concorde Hotel in Malaysia, in line with its strategy of exiting from its non-core activities and focusing on its core automotive businesses. - 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 ninemonths ended 30 September 2007 can be accessed through the internet at'www.jcclgroup.com'. This information is provided by RNS The company news service from the London Stock Exchange