JDS.L Regulatory News (JDS)

8 Sep 2006 10:36

Jardine Strategic Hldgs Ld08 September 2006 To: Business Editor 8th September 2006 For immediate release Jardine Cycle & Carriage Limited2006 Half Year 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 LimitedMartin Henderson (44) 207 816 8135 GolinHarrisKennes Young (852) 2501 7987 Weber Shandwick Square MileRichard Hews/Helen Thomas (44) 207 067 0700 8 September 2006 JARDINE CYCLE & CARRIAGE LIMITED2006 HALF YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights • Underlying earnings decline by 39% to USc28.51 per share • Indonesian markets for motor vehicles and motorcycles decline by 49% and 26%, respectively • Appointed by Citroen as distributor in Singapore • Interim dividend maintained at USc3.00 per share "While the recent lowering of interest rates in Indonesia should be of benefitto our operations there, it remains too early to predict the extent of arecovery in consumer demand." Anthony Nightingale, Chairman8 September 2006 Group Results ----------------------------------------------------------------------------- Six months ended 30 June----------------------------------------------------------------------------- 2006 2005 Change 2006 US$m US$m % S$m-----------------------------------------------------------------------------Revenue 3,539 543 551 5,673Underlying profit attributable to shareholders 96 156 -38 154Profit attributable to shareholders 99 159 -38 158----------------------------------------------------------------------------- USc USc Sc-----------------------------------------------------------------------------Underlying earnings* per share 28.51 46.73 -39 45.71Earnings per share 29.28 47.57 -38 46.96Interim dividend per share (gross)^ 3.00 3.00 - 4.77----------------------------------------------------------------------------- At Restated At 30.6.06 31.12.05 Change 30.6.06----------------------------------------------------------------------------- US$m US$m % S$m-----------------------------------------------------------------------------Shareholders' funds+ 1,683 1,544 9 2,674 US$ US$ S$Net asset value per share+ 5.00 4.59 9 7.94----------------------------------------------------------------------------- The exchange rate of US$1=S$1.589 (31.12.2005: US$1=S$1.665) was used fortranslating assets and liabilities at the balance sheet date and US$1=S$1.603(30.6.2005: US$1=S$1.652) was used for translating the results for the period. The financial results for the six months ended 30 June 2006 have been preparedin accordance with the International Financial Reporting Standards ("IFRS").These results have not been audited or reviewed by the Auditors. The financialresults for the year ended 31 December 2005 were audited in accordance with theSingapore Standards on Auditing. Astra became a subsidiary on 1 August 2005, and its results have beenconsolidated since then. \* The basis for calculating underlying earnings is set out in Note 6 of thisreport. ^The S$ amount is estimated. The actual amount will be determined on the BooksClosure Date referred to in Note 16. +The prior year adjustment is set out in Note 1 of this report. CHAIRMAN'S STATEMENT Overview The continuing weak consumer demand has led to a significant reduction in thecontribution to the Group's results from its Indonesian interests. Performance The Group's underlying profit after tax and minority interests for the sixmonths ended 30 June 2006 declined by 38% to US$96 million. Underlying earningsper share were 39% lower at USc28.51. The decline arose primarily in Indonesiawhere both Astra and Tunas Ridean were impacted by the poor market conditions.After exceptional gains of US$3 million from asset sales, net profit was down38% at US$99 million. The Group's consolidated net debt (excluding Astra's financial servicesactivities) was US$79 million lower than the previous year end at US$531million. The reduction was due to asset sales by Cycle & Carriage Bintang, thedistribution in specie of the Group's shareholding in MCL Land Limited, and thereceipt of dividends by Astra from associates, partly offset by an increase innet debt at the corporate level resulting from a weaker US Dollar. Dividends The Board has declared an unchanged interim dividend of USc3.00 (2005: USc3.00)per share less income tax. The dividend is available in cash in US dollars orSingapore dollars with a scrip alternative. Group Review Astra Astra's contribution to the Group's underlying profit declined by 32% to US$99million. Weaker consumer demand in Indonesia saw the market for motor carsdecline by 49% to 149,600 units and for motorcycles by 26% to 1.8 million units.Astra's market share for motor cars rose from 46% to 56% supported by Toyota'sstrong range and the introduction of new models. The company's market share formotorcycles was slightly lower at 50% or 914,000 units due to delays in newmodel launches. Astra's component manufacturing operations were affected by boththe lower volumes and increased raw material costs. Its related consumer financeoperations experienced a similar decline in activity and have increased theirprovisions for doubtful debts. On 7 September 2006, Astra announced that inpartnership with Standard Chartered Bank, each is investing a further US$97million to acquire additional shares in PT Bank Permata Tbk, thereby increasingtheir respective shareholdings from 31.6% to 44.5%. Within Astra's other non-automotive operations, United Tractors' Komatsuequipment sales declined by 25% to 1,100 units primarily due to lower demand inthe mining sector. Pamapersada's contract coal mining operations, however,increased production by 23% to over 20 million tons. Astra Agro Lestari was ableto increase its crude palm oil production by 14% and benefited from firmerprices. In infrastructure, Astra's small investment in a toll road performedwell. On 25 July 2006, Astra purchased a 30% interest in the franchise for theWestern Jakarta water system which runs until 2023. Further infrastructureinvestments are under consideration. Net debt within Astra, excluding its financial services operations, reduced byUS$30 million to US$233 million during the period as dividends from associateswere partially offset by an increase in equipment purchases for contract mining.Net debt in Astra's financial services operations was down by US$325 million to US$1,663 million due to a decline in the activity level. Motor The underlying profit of US$13 million from the Group's motor operations was 23%lower due to the decline in earnings in Tunas Ridean and no further contributionfrom Australia. Earnings in Singapore rose by 24% to US$12 million. There was good growth byMitsubishi where passenger car sales increased by 41% to 4,530 units, andMercedes-Benz benefited from the launch of the new S-Class. Sales for bothMercedes-Benz and Kia grew by 6% to 1,490 units and 2,820 units, respectively.The Group has been appointed as the distributor for Citroen in Singapore witheffect from 1 October 2006. The underlying profit contribution from Cycle & Carriage Bintang in Malaysiadeclined 60% to US$0.6 million. The introduction of a new national automotivepolicy that favours locally assembled vehicles has caused considerabledisruption to the market, which is expected to take some time to adapt to thechanges. Following the disposal of surplus properties, Cycle & Carriage Bintangis to distribute to shareholders some US$40 million by way of a special dividendwhich is due to be paid in October 2006. PT Tunas Ridean, the Group's 37% owned associate, was also impacted by the weakdemand in Indonesia and increased doubtful debt provisions. Its contribution tounderlying profit reduced to US$0.8 million from US$4 million in the same periodlast year. Property There was no contribution from property for the period following thedistribution in specie on 25 January 2006 of the Group's 65.6% interest in MCLLand, which completed the withdrawal from property activities. Prospects While the recent lowering of interest rates in Indonesia should be of benefit toour operations there, it remains too early to predict the extent of a recoveryin consumer demand. Anthony NightingaleChairman8 September 2006 Statement pursuant to Rule 705(4) of the Listing Manual The directors confirm that, to the best of their knowledge, nothing has come tothe attention of the Board of Directors which may render the accompanyingunaudited interim financial results for the six months ended 30 June 2006 to befalse or misleading in any material respect. On behalf of the Directors Anthony NightingaleDirector Alan YeoDirector 8 September 2006 ---------------------------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Profit and Loss Account--------------------------------------------------------------------------------------------------------- Three months ended Six months ended 30.6.06 30.6.05 Change 30.6.06 30.6.05 Change Note US$m US$m % US$m US$m % Continuing operationsRevenue 1,744.0 271.0 544 3,538.5 542.2 553Cost of sales (1,369.6) (247.7) 453 (2,809.7) (494.6) 468 ---------- ---------- ---------- ----------Group profit 374.4 23.3 nm 728.8 47.6 nm Other operating income 29.1 8.5 242 88.9 14.7 505Selling and distribution expenses (142.9) (14.7) 872 (232.4) (29.6) 685Administrative expenses (109.9) (4.6) nm (226.3) (11.1) nmOther operating expenses (30.5) (1.3) nm (58.1) (1.5) nm ---------- ---------- ---------- ----------Operating profit 120.2 11.2 973 300.9 20.1 nm Financing charges (21.5) (3.0) 617 (41.0) (5.6) 632Share of associates' and joint ventures' results 38.8 78.7 -51 72.2 153.1 -53 ---------- ---------- ---------- ----------Profit before tax 3 137.5 86.9 58 332.1 167.6 98Tax 4 (37.1) (4.5) 724 (85.4) (6.2) nm ---------- ---------- ---------- ----------Profit after tax from continuing operations 100.4 82.4 22 246.7 161.4 53 ========== ========== ========== ========== Discontinued operations Revenue - 0.5 -100 - 1.0 -100 Profit before tax - 1.0 -100 - 1.2 -100Tax - (0.1) -100 - (0.2) -100 ---------- ---------- ---------- ----------Profit after tax from discontinued operations 13 - 0.9 -100 - 1.0 -100 ========== ========== ========== ========== Profit attributable to:Shareholders 38.2 80.4 -52 98.6 158.8 -38Minority interests 62.2 2.9 nm 148.1 3.6 nm ---------- ---------- ---------- ---------- 100.4 83.3 21 246.7 162.4 52 ========== ========== ========== ========== --------------------------------------------------------------------------------------------------------- USc USc USc USc---------------------------------------------------------------------------------------------------------Earnings per share: 5 - Basic 11.34 24.08 -53 29.28 47.57 -38 - fully diluted 11.33 24.05 -53 29.27 47.52 -38 Earnings per share from continuing operations: 5 - basic 11.34 23.93 -53 29.28 47.39 -38 - fully diluted 11.33 23.90 -53 29.27 47.34 -38--------------------------------------------------------------------------------------------------------- nm: not meaningful ------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Balance Sheet------------------------------------------------------------------------------------ At Restated Note 30.6.06 31.12.05 US$m US$mNon-current assetsIntangible assets 443.0 422.0Leasehold land use rights 407.6 399.4Property, plant and equipment 1,166.7 1,037.5Investment properties 26.9 51.1Plantations 412.6 383.1Interests in associates and joint ventures 1,119.1 1,093.7Non-current investments 43.9 43.4Debtors 1,013.5 1,218.0Deferred tax assets 55.2 51.7Other non-current assets 71.2 71.1 ---------- ---------- 4,759.7 4,771.0 ---------- ----------Current assetsDevelopment properties for sale - 415.9Stocks 603.1 678.2Debtors 1,968.7 2,056.3Current tax assets 73.8 45.1Bank balances and other liquid funds - non-finance companies 438.7 317.2- finance companies 188.9 186.6 627.6 503.8 ---------- ---------- 3,273.2 3,699.3 ---------- ----------Total assets 8,032.9 8,470.3 ---------- ---------- Non-current liabilitiesProvisions 12.4 10.6Long-term borrowings 7 - non-finance companies 387.7 394.6- finance companies 824.6 1,005.3 1,212.3 1,399.9Deferred tax liabilities 271.7 270.6Other non-current liabilities 183.5 166.4 ---------- ---------- 1,679.9 1,847.5 ---------- ----------Current liabilitiesProvisions 25.0 38.9Current borrowings 7 - non-finance companies 586.6 542.0- finance companies 1,026.9 1,168.9 1,613.5 1,710.9Current tax liabilities 35.9 74.0Dividend payable 40.1 250.6Creditors 984.6 1,017.1 ---------- ---------- 2,699.1 3,091.5 ---------- ----------Total liabilities 4,379.0 4,939.0 ---------- ---------- ---------- ----------Net assets 3,653.9 3,531.3 ========== ========== EquityShare capital 8 459.5 185.4Share premium 8 - 274.0Fair value and other reserves 9 309.3 307.3Revenue reserve 10 914.5 777.4 ---------- ----------Shareholders' funds 1,683.3 1,544.1Minority interests 11 1,970.6 1,987.2 ---------- ---------- 3,653.9 3,531.3 ========== ========== Net asset value per share US$5.00 US$4.59 ------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Statement of Recognised Income and Expense------------------------------------------------------------------------------------ Three months ended Six months ended 30.6.06 30.6.05 30.6.06 30.6.05 US$m US$m US$m US$mFair value changes of available-for-sale investments, net of tax 2.3 (0.4) 5.5 0.2 Actuarial loss on defined benefit pension plans, net of tax (7.0) - (7.0) - Surplus/(deficit) on revaluation of land and buildings, net of tax 0.1 0.5 - (0.3) Translation difference (80.8) (42.6) 180.5 (71.0) ---------- ---------- ---------- ----------Net gain/(loss) recognised directly in equity (85.4) (42.5) 179.0 (71.1) Profit after tax 100.4 83.3 246.7 162.4 ---------- ---------- ---------- ----------Total recognised income and expense for the period 15.0 40.8 425.7 91.3 ========== ========== ========== ========== Profit attributable to: Shareholders of the Company (4.6) 40.8 179.2 92.2 Minority interests 19.6 - 246.5 (0.9) ---------- ---------- ---------- ---------- 15.0 40.8 425.7 91.3 ========== ========== ========== ========== ------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedCompany Balance Sheet------------------------------------------------------------------------------------ Note At At 30.6.06 31.12.05 US$m US$mNon-current assetsProperty, plant and equipment 0.7 0.9Interests in subsidiaries 1,162.1 1,358.3Interests in associates 46.8 44.6 ---------- ---------- 1,209.6 1,403.8 ---------- ----------Current assetsDebtors 87.1 19.8Bank balances and other liquid funds 1.6 0.3 ---------- ---------- 88.7 20.1 ---------- ---------- Total assets 1,298.3 1,423.9 ---------- ---------- Non-current liabilitiesDeferred tax liabilities 0.4 0.4 ---------- ---------- 0.4 0.4 ---------- ---------- Current liabilitiesCurrent borrowings 275.2 254.0Current tax liabilities 0.9 0.8Dividend payable 40.1 250.6Creditors 70.3 66.2 ---------- ---------- 386.5 571.6 ---------- ---------- Total liabilities 386.9 572.0 ---------- ---------- Net assets 911.4 851.9 ========== ========== Share capital and reservesShare capital 8 459.5 185.4Share premium 8 - 274.0Share option reserve 9 0.3 0.3Revenue reserve 10 451.6 392.2 ---------- ----------Shareholders' funds 911.4 851.9 ========== ========== Net asset value per share US$2.71 US$2.53 ------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedCompany Statement of Recognised Income and Expense------------------------------------------------------------------------------------ Three months ended Six months ended 30.6.06 30.6.05 30.6.06 30.6.05 US$m US$m US$m US$m Translation difference 17.0 (23.7) 41.0 (33.0) ---------- ---------- ---------- ----------Net gain/(loss) recognised directly in equity 17.0 (23.7) 41.0 (33.0) Profit after tax 68.1 90.9 58.5 87.7 ---------- ---------- ---------- ----------Total recognised income and expense for the period 85.1 67.2 99.5 54.7 ========== ========== ========== ========== Profit attributable to: Shareholders of the Company 85.1 67.2 99.5 54.7 ========== ========== ========== ========== ------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Statement of Cash Flows------------------------------------------------------------------------------------ Three months ended Six months ended 30.6.06 30.6.05 30.6.06 30.6.05 Note US$m US$m US$m US$m Cash flows from/(used in) operating activities 12 461.0 (101.7) 814.5 (80.0) Cash generated from operations Interest paid (19.0) (3.4) (41.4) (5.7)Interest received 10.0 0.9 19.1 2.5Other finance costs paid - - (0.1) (0.4)Income tax paid (66.1) (7.1) (156.0) (8.4) (75.1) (9.6) (178.4) (12.0) -------- -------- -------- --------Net cash flows from/ (used in) operating activities 385.9 (111.3) 636.1 (92.0) -------- -------- -------- -------- Cash flows from investing activities Sale of leasehold land use rights 5.7 - 8.0 -Sale of property, plant and equipment 11.9 0.8 24.0 1.7Sale of investment properties - 8.7 - 45.4Sale of subsidiaries, net of cash disposed 0.4 - (27.3) -Sale of shares in associates - 2.1 - 3.2Purchase of property, plant and equipment (105.6) (4.2) (223.6) (8.2)Purchase of leasehold land use rights (1.1) - (3.8) (0.3)Purchase of plantations (5.1) - (8.2) -Purchase of subsidiaries, net of cash acquired - (7.2) (3.5) (7.2)Purchase of investment property - - - (8.2)Purchase of shares in associates (0.2) (101.2) (31.7) (124.3)Capital repayment of other investments 0.3 - 0.5 -Dividends received from associates (net) 21.1 10.1 115.5 10.1 Net cash flows used in investing activities (72.6) (90.9) (150.1) (87.8) Cash flows from financing activities Proceeds from issue of shares 0.1 0.6 0.1 1.1Drawdown of loans 737.6 132.8 1,233.3 480.3Repayment of loans (909.5) (3.8) (1,592.3) (340.4)Investment by minority interests - - 9.4 -Dividends paid to minority interests (35.4) (44.9) (35.6) (44.9) Net cash flows from/ (used in) financing activities (207.2) 84.7 (385.1) 96.1 -------- -------- -------- -------- Net change in cash and cash equivalents 106.1 (117.5) 100.9 (83.7)Cash and cash equivalents at the beginning of the period 517.0 209.4 491.0 177.0Effect of exchange rate changes (15.8) (1.1) 15.4 (2.5) -------- -------- -------- --------Cash and cash equivalents at the end of the period 607.3 90.8 607.3 90.8 ======== ======== ======== ======== ------------------------------------------------------------------------------------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 shown below: IAS 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. The Group makes estimates andassumptions concerning the future. It also requires management to exercise itsjudgment in the process of applying the Group's accounting polices. Estimatesand judgments are continually evaluated and are based on historical experienceand other factors, including expectations of future events that are believed tobe reasonable under the 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 adjustment The adjustments to 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 (60.3)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 (35.1) ======== 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. There were no financial effects in adopting these financial standards for thesix months ended 30 June 2006. 3 Profit before tax Group Three months ended Six months ended 30.6.06 30.6.05 Change 30.6.06 30.6.05 Change US$m US$m % US$m US$m % Profit before tax is determined after including:Interest income 10.4 0.7 nm 19.5 1.7 nmInterest expense (21.6) (2.9) 645 (41.3) (5.2) 694Depreciation and amortisation of property, plant and equipment and leasehold land use rights (57.7) (2.2) nm (112.4) (4.3) nmProfit on sale of shares in a subsidiary - - - 7.2 - 100Profit on sale of property, plant and equipment 2.7 - 100 4.4 - 100Profit on sale of leasehold land use rights 2.5 - 100 3.7 - 100Loss on sale of repossessed assets (27.1) - 100 (52.2) - 100Fair value changes of forward exchange contracts (0.1) (0.6) -83 (1.2) (0.5) 140Impairment of intangible assets - (0.8) -100 - (0.8) -100Net exchange gain/(loss) (6.8) 0.1 nm 16.2 2.4 575Write-down of stocks (1.7) (1.0) 70 (2.9) (1.0) 190Write-back of impairment/ (impairment) of debtors (64.2) 0.2 nm (63.7) 1.6 nmProvision for warranty and goodwill claims (2.3) (1.7) 35 (4.3) (3.9) 10Write-back of provision for closure costs - - - - 1.2 -100 ======== ======== ======== ======== 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 Earnings per share Group Three months ended Six months ended 30.6.06 30.6.05 30.6.06 30.6.05 US$m US$m US$m US$mBasic earnings per share Profit attributable to shareholders 38.2 80.4 98.6 158.8Weighted average number of ordinary shares in issue (millions) 336.8 333.9 336.7 333.8 Basic earnings per share USc11.34 USc24.08 USc29.28 USc47.57 ======== ======== ======== ======== Profit attributable to shareholders from continuing operations 38.2 79.9 98.6 158.2Basic earnings per share from continuing operations USc11.34 USc23.93 USc29.28 USc47.39 ======== ======== ======== ======== Profit attributable to shareholders from discontinued operations - 0.5 - 0.6Basic earnings per share from discontinued operations USc - USc0.15 USc - USc0.18 ======== ======== ======== ======== Diluted earnings per share Profit attributable to shareholders 38.2 80.4 98.6 158.8Weighted averagenumber of ordinary shares in issue (millions) 336.8 333.9 336.7 333.8Adjustment for assumed conversion of share options (millions) 0.2 0.4 0.2 0.4 -------- -------- -------- --------Weighted average number of ordinary shares for diluted earnings per share (millions) 337.0 334.3 336.9 334.2 ======== ======== ======== ========Diluted earnings per share USc11.33 USc24.05 USc29.27 USc47.52 ======== ======== ======== ======== Profit attributable to shareholders from continuing operations 38.2 79.9 98.6 158.2Diluted earnings per share from continuing operations USc11.33 USc23.90 USc29.27 USc47.34 ======== ======== ======== ======== Profit attributable to shareholders from discontinued operations - 0.5 - 0.6 Diluted earnings per share from discontinued operations USc - USc 0.15 USc - USc0.18 ======== ======== ======== ======== Underlying earnings per share Underlying profit attributable to shareholders (note 6) 37.0 81.2 96.0 156.0 Basic underlying earnings per share USc10.99 USc24.32 USc28.51 USc46.73 ======== ======== ======== ========Diluted underlying earnings per share USc10.98 USc24.29 USc28.50 USc46.68 ======== ======== ======== ======== 6 Underlying profit attributable to shareholders A reconciliation of the profit attributable to shareholders and underlyingprofit attributable to shareholders is as follows: Group Three months ended Six months ended 30.6.06 30.6.05 30.6.06 30.6.05 US$m US$m US$m US$m Profit attributable to shareholders 38.2 80.4 98.6 158.8Less:Exceptional items Profit on sale of shares in a subsidiary (0.2) - 1.2 -Profit on sale of surplusMalaysian properties 1.4 - 1.4 -Profit on closure ofAustralian operations - - - 3.6Impairment of intangible assets - (0.8) - (0.8) 1.2 (0.8) 2.6 2.8 -------- -------- -------- --------Underlying profit attributable to shareholders 37.0 81.2 96.0 156.0 ======== ======== ======== ======== The underlying profit attributable to shareholders by business is shown below: Group Three months ended Six months ended 30.6.06 30.6.05 Change 30.6.06 30.6.05 Change US$m US$m % US$m US$m %AstraMotor vehicles 9.8 25.0 -61 20.0 44.4 -55Motorcycles 16.5 24.8 -33 32.2 48.2 -33 Other automotive 1.8 4.8 -63 3.8 8.7 -56 ------- ------- ------- -------Total automotive 28.1 54.6 -49 56.0 101.3 -45Non-automotive 24.5 26.2 -6 53.7 49.2 9Corporate costs (6.8) (2.1) 224 (12.2) (3.0) 307 ------- ------- ------- -------Trading profit 45.8 78.7 -42 97.5 147.5 -34Forex and others (2.3) (2.6) -12 1.4 (1.1) nm ------- ------- ------- ------- 43.5 76.1 -43 98.9 146.4 -32 ------- ------- ------- ------- MotorsSingapore 6.3 5.0 26 11.8 9.5 24Malaysia (0.3) 1.0 nm 0.6 1.5 -60Indonesia (Tunas Ridean) 0.2 1.8 -89 0.8 4.0 -80Others (0.2) 1.7 nm (0.2) 1.9 nm ------- ------- ------- ------- 6.0 9.5 -37 13.0 16.9 -23 ------- ------- ------- ------- Property - 1.1 -100 - 1.4 -100 ------- ------- ------- ------- Corporate costs and others (5.1) (5.5) -7 (8.5) (8.7) -2Withholding tax on dividends from Indonesia (7.4) - 100 (7.4) - 100 ------- ------- ------- ------- (12.5) (5.5) 127 (15.9) (8.7) 83 ------- ------- ------- ------- ------- ------- ------- -------Underlying profit attributable to shareholders 37.0 81.2 -54 96.0 156.0 -38 ======= ======= ======= ======= 7 Borrowings Group At At 30.6.06 31.12.05 US$m US$m Long-term borrowings:- secured 605.0 581.9- unsecured 607.3 818.0 --------- --------- 1,212.3 1,399.9 --------- --------- Current borrowings:- secured 489.8 472.2- unsecured 1,123.7 1,238.7 --------- --------- 1,613.5 1,710.9 --------- --------- --------- ---------Total borrowings 2,825.8 3,110.8 ========= ========= Certain subsidiaries of the Group have pledged their assets in order to obtainbank facilities from financial institutions. The value of assets pledged wasUS$1,097.8 million (31.12.05: US$1,145.6 million). 8 Share capital CompanyThree months ended 30 June 2006 2005 US$m US$m Share capital:Balance at 1 April 459.4 183.7Issue of shares 0.1 0.1 --------- ---------Balance at 30 June 459.5 183.8 ========= ========= Share premium:Balance at 1 April - 255.3Issue of shares - 0.5 --------- ---------Balance at 30 June - 255.8 ========= ========= Six months ended 30 June 2006 2005 US$m US$m Share capital:Balance at 1 January 185.4 183.6Issue of shares 0.1 0.2Transfer from share premium 274.0 - --------- ---------Balance at 30 June 459.5 183.8 ========= ========= Share premium:Balance at 1 January 274.0 254.9Issue of shares - 0.9Transfer to share capital (274.0) - --------- ---------Balance at 30 June - 255.8 ========= ========= Pursuant to the abolition of par or nominal value of share capital in theCompanies (Amendment) Act 2005 which took effect on 30 January 2006, the amountin share premium has become part of the Company's share capital. 9 Fair value and other reserves Group Company At At At At 30.6.06 30.6.05 30.6.06 30.6.05 US$m US$m US$m US$mComposition:Fair value reserve 3.6 3.1 - -Asset revaluation reserve 302.0 10.0 - -Share option reserve 0.3 0.4 0.3 0.4Other reserve 3.4 3.8 - - --------- --------- --------- --------- 309.3 17.3 0.3 0.4 ========= ========= ========= ========= Group CompanyThree months ended 30 June 2006 2005 2006 2005 US$m US$m US$m US$mMovements:Fair value reserveBalance at 1 April 2.8 3.4 - -Fair value changes of available-for-sale investments, net of tax 0.8 (0.3) - - ------- ------- ------- -------Balance at 30 June 3.6 3.1 - - ======= ======= ======= ======= Asset revaluation reserveBalance at 1 April as reported previously 336.9 9.5 - -Prior year adjustment (Note 1) (34.9) - - - ------- ------- ------- -------Balance at 1 April as restated 302.0 9.5 - -Surplus on revaluation of land and buildings, net of tax 0.1 0.5 - -Reserve realised on disposal of land and buildings (0.1) - - - ------- ------- ------- -------Balance at 30 June 302.0 10.0 - - ======= ======= ======= ======= Share option reserveBalance at 1 April 0.3 0.4 0.3 0.4 ------- ------- ------- -------Balance at 30 June 0.3 0.4 0.3 0.4 ======= ======= ======= ======= Other reserveBalance at 1 April 3.4 3.8 - - ------- ------- ------- -------Balance at 30 June 3.4 3.8 - - ======= ======= ======= ======= Group CompanySix months ended 30 June 2006 2005 2006 2005 US$m US$m US$m US$mMovements:Fair value reserveBalance at 1 January 1.2 2.7 - -Fair value changes of available-for-sale investments, net of tax 2.4 0.4 - - ------- ------- ------- -------Balance at 30 June 3.6 3.1 - - ======= ======= ======= ======= Asset revaluation reserveBalance at 1 January as previously reported 336.9 10.3 - -Prior year adjustment (Note 1) (34.9) - - - ------- ------- ------- -------Balance at 1 January as restated 302.0 10.3 - -Deficit on revaluation of land and buildings, net of tax - (0.3) - - ------- ------- ------- -------Balance at 30 June 302.0 10.0 - - ======= ======= ======= ======= Share option reserveBalance at 1 January 0.3 0.4 0.3 0.4 ------- ------- ------- -------Balance at 30 June 0.3 0.4 0.3 0.4 ======= ======= ======= ======= Other reserveBalance at 1 January 3.8 3.8 - -Reserve realised on disposal of a subsidiary (0.4) - - - ------- ------- ------- -------Balance at 30 June 3.4 3.8 - - ======= ======= ======= ======= 10 Revenue reserve Group Company At At At At 30.6.06 30.6.05 30.6.06 30.6.05 US$m US$m US$m US$mComposition:Translation reserve 16.5 (80.5) 118.3 64.1Retained earnings 898.0 964.7 333.3 578.1 ------- ------- ------- ------- 914.5 884.2 451.6 642.2 ======= ======= ======= ======= Group CompanyThree months ended 30 June 2006 2005 2006 2005 US$m US$m US$m US$mMovements:Translation reserveBalance at 1 April as previously reported 57.7 (40.7) 101.3 87.8Prior year adjustment (Note 1) (0.2) - - - ------- ------- ------- -------Balance at 1 April as restated 57.5 (40.7) 101.3 87.8Translation difference (41.1) (39.8) 17.0 (23.7)Reserve realised on disposal of subsidiaries 0.1 - - - ------- ------- ------- -------Balance at 30 June 16.5 (80.5) 118.3 64.1 ======= ======= ======= ======= Retained earningsBalance at 1 April 902.5 905.8 305.3 508.7Asset revaluation reserve realised on disposal of land and buildings 0.1 - - -Actuarial loss on defined benefit pension plans, net of tax (2.7) - - -Profit attributable to shareholders 38.2 80.4 68.1 90.9Dividends (net) (40.1) (21.5) (40.1) (21.5) ------- ------- ------- -------Balance at 30 June 898.0 964.7 333.3 578.1 ======= ======= ======= ======= Group CompanySix months ended 30 June 2006 2005 2006 2005 US$m US$m US$m US$mMovements:Translation reserveBalance at 1 January as previously reported (63.1) (13.8) 77.3 97.1Prior year adjustment (Note 1) (0.2) - - - ------- ------- ------- -------Balance at 1 January as restated (63.3) (13.8) 77.3 97.1Translation difference 76.7 (66.7) 41.0 (33.0)Reserve realised on disposal of subsidiaries 3.1 - - - ------- ------- ------- -------Balance at 30 June 16.5 (80.5) 118.3 64.1 ======= ======= ======= ======= Retained earningsBalance at 1 January 840.7 827.4 314.9 511.9Other reserve realised on disposal of a subsidiary 0.4 - - -Actuarial loss on defined benefit pension plans, net of tax (2.7) - - -Gain on dilution of interests in investments 1.1 - - -Profit attributable to shareholders 98.6 158.8 58.5 87.7Dividends (net) (40.1) (21.5) (40.1) (21.5) ------- ------- ------- -------Balance at 30 June 898.0 964.7 333.3 578.1 ======= ======= ======= ======= 11 Minority interests GroupThree months ended 30 June 2006 2005 US$m US$m Balance at 1 April as previously reported 2,126.1 221.5Prior year adjustment (Note 1) (63.4) - --------- ---------Balance at 1 April as restated 2,062.7 221.5 --------- ---------Fair value changes of available-for-sale investments, net of tax 1.5 (0.1)Actuarial loss on defined benefit pension plans, net of tax (4.3) -Translation difference (39.8) (2.8) Net loss recognised directly in equity (42.6) (2.9)Profit for the period 62.2 2.9 --------- ---------Total recognised gain for the period 19.6 -Dividends (net) (110.7) (44.9)Acquisition/disposal of subsidiaries (1.0) 0.9 --------- ---------Balance at 30 June 1,970.6 177.5 ========= ========= Six months ended 30 June 2006 2005 US$m US$m Balance at 1 January as previously reported 2,050.6 222.4Prior year adjustment (Note 1) (63.4) - --------- ---------Balance at 1 January as restated 1,987.2 222.4 Fair value changes of available-for-sale investments, net of tax 3.1 (0.2)Actuarial loss on defined benefit pension plans, net of tax (4.3) -Loss on dilution of interest in investments (1.1) -Translation difference 100.7 (4.3) Net gain/(loss) recognised directly in equity 98.4 (4.5)Profit for the period 148.1 3.6 --------- ---------Total recognised gain for the period 246.5 (0.9)Dividends (net) (110.9) (44.9)Issue of shares 9.4 -Acquisition/disposal of subsidiaries (161.6) 0.9 --------- ---------Balance at 30 June 1,970.6 177.5 ========= ========= 12 Cash flows from operating activities Group Three months ended Six months ended 30.6.06 30.6.05 30.6.06 30.6.05 US$m US$m US$m US$m Profit before tax 137.5 87.9 332.1 168.8 Adjustments for: Interest income (10.4) (0.7) (19.5) (1.7)Financing charges 21.5 3.1 41.0 5.7Share of associates' and joint ventures' results (38.8) (78.7) (72.2) (153.1)Depreciation and amortisation of property, plant and equipment and leasehold land use rights 57.7 2.2 112.4 4.3Impairment of other investments - - 0.1 -Impairment of intangible assets - 0.8 - 0.8Negative goodwill on acquisition of a subsidiary - - (0.2) -Foreign exchange translation difference 35.5 (0.2) (21.6) (2.5)Profit on sale of property, plant and equipment (2.7) - (4.4) -Profit on sale of leasehold land use right (2.5) - (3.7) -Profit on sale of investment properties - (0.8) - (0.8)Loss on sale of repossessed assets 27.1 - 52.2 -Write-down of stocks 1.7 1.0 2.9 1.0Impairment/(write-back of impairment) of debtors 64.2 (0.2) 63.7 (1.6)Changes in provisions 3.6 1.7 6.5 2.7Profit on sale of shares in a subsidiary - - (7.2) -Fair value changes of investment properties 1.3 - 1.3 -Fair value changes of plantations (0.7) - (1.2) - 157.5 (71.8) 150.1 (145.2) ------- ------- ------- -------Operating profit before working capital changes 295.0 16.1 482.2 23.6 Changes in working capital: Development properties for sale - (112.1) - (115.2)Stocks 54.3 (18.0) 100.7 (6.7)Financing debtors 162.1 0.3 431.1 0.6Debtors (67.1) (14.9) (177.1) (5.9)Creditors 16.7 26.9 (22.4) 23.6 166.0 (117.8) 332.3 (103.6) ------- ------- ------- -------Cash flows from operating activities 461.0 (101.7) 814.5 (80.0) ======= ======= ======= ======= 13 Discontinued operations On 23 December 2005, a proposed distribution of 242,824,655 ordinary shares ofMCL Land Limited held by the Company to its shareholders by way of a dividend inspecie, was approved by the shareholders at the Extraordinary General Meeting ofthe Company. The distribution, in the proportion of 0.721394388 MCL Land StockUnits for every one ordinary share in the capital of the Company, was completedon 25 January 2006. MCL Land Limited ceased to be a subsidiary of the Companyaccordingly. The distribution completes the Group's strategy of withdrawing from propertyactivities. Group Three months Six months ended ended 30.6.2005 30.6.2005 US$m US$mProfit of discontinued operations:Revenue 0.5 1.0Operating income 0.5 0.2 --------- ---------Profit before tax 1.0 1.2Tax (0.1) (0.2) --------- ---------Profit after tax 0.9 1.0 ========= ========= Cash flow of discontinued operations:Operating cash flows (96.2) (56.7)Investment cash flows 7.6 (2.0)Financing cash flows (5.6) (38.6) --------- ---------Total cash flows (94.2) (97.3) ========= ========= 14 Interested person transactions Aggregate value of all interested person Aggregate value of all transactions (excluding interested person transactions transactions less than conducted under shareholders' S$100,000 and transactions mandate pursuant to Rule 920 conducted under shareholders' (excluding transactions lessName of interested person mandate pursuant to Rule 920) than S$100,000)-------------------------- ----------------------------- ----------------------------- US$m US$m Three months ended 30 June 2006Jardine Matheson Limited- management consultancy services - 0.3MCL Land Limited- sale of a used car - 0.1 Six months ended 30 June 2006Jardine Matheson Limited- management consultancy services - 0.4MCL Land Limited- sale of a used car - 0.1Director of the Company, Chang See Hiang- sale of a motor car 0.2 -- purchase of a used car 0.1 - ============================= ============================= 15 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 311,000as at 30 June 2006 (30.6.2005: 497,000). Between 1 April 2006 and 30 June 2006, 115,000 ordinary shares were issued forcash pursuant to the exercise of options granted under the CCL Executives' ShareOption Schemes to subscribe for shares in the capital of the Company at theexercise prices of S$4.340 and S$1.204 per share. Except for those mentioned above, there were no other rights, bonus or equityissues during the period between 1 April 2006 and 30 June 2006. 16 Closure of books NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members willbe closed on Tuesday, 26 September 2006 for the purpose of determining shareholders' entitlement to the interim 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 25 September 2006 ("BooksClosure Date") will be registered before entitlements to the interim dividendare 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 interim dividend. The interim dividend willbe paid on or about Tuesday, 14 November 2006. As in the previous years,shareholders will continue to have the option to receive the dividend in scrip.Shareholders who do not elect for the scrip alternative will have the option toreceive the dividend in Singapore dollars. In the absence of any election, thedividend will be paid in US dollars. Details on these electives will befurnished to shareholders in due course. 17 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 exceptional items shown in note 6 of this report. No significant transaction or event has occurred between 1 July 2006 and thedate of this report, except that on 7 September 2006, PT Astra InternationalTbk, the Group's 50.1% owned subsidiary, announced that in partnership withStandard Chartered Bank each is investing a further US$97 million to acquireadditional shares in PT Bank Permata Tbk, thereby increasing their respectiveshareholdings from 31.6% to 44.5%. - 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 sixmonths ended 30 June 2006 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 END This information is provided by RNS The company news service from the London Stock Exchange