JDS.L Regulatory News (JDS)

29 Feb 2008 09:20

Jardine Strategic Hldgs Ld29 February 2008 To: Business Editor 29th February 2008 For immediate release Jardine Cycle & Carriage Limited2007 Financial Statements and Dividend Announcement The following announcement was issued today by the Company's 65%-ownedsubsidiary, 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 GolinHarrisCharlotte Fan (852) 2501 7978 Weber Shandwick FinancialRichard Hews / Hannah Marwood (020) 7067 0700 JARDINE CYCLE & CARRIAGE LIMITED2007 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights • Underlying earnings per share up 79% to USc108.28 • Excellent profit growth in most of Astra's businesses • Good performance from Singapore motor interests • Full year dividend up 115% "Jardine Cycle & Carriage has entered 2008 with most of its businessesperforming well, although competition remains significant and any deteriorationin the economic environment could adversely affect the markets in which theGroup operates. Nevertheless, our sound finances and the quality of ouroperations position us well to meet any challenges." Anthony Nightingale, Chairman29th February 2008 Group Results--------------------------------------------------------------------- Year ended 31st December --------------------------------------------------------------------- Restated 2007 2006 Change 2007 US$m US$m % S$m ---------------------------------------------------------------------Revenue 8,896 7,186 24 13,364 Profit after tax 825 527 56 1,239 Underlying profit attributable to shareholders* 374 205 82 562 Profit attributable to shareholders 340 224 52 511 --------------------------------------------------------------------- USc USc Sc ---------------------------------------------------------------------Underlying earnings* per share 108.28 60.53 79 162.68 Earnings per share 98.47 66.02 49 147.94 Gross dividend per share** 43.00 20.00 115 62.98 --------------------------------------------------------------------- US$m US$m S$m ----------------------------------------------------------------------Shareholders'funds 2,160 1,906 13 3,118 ---------------------------------------------------------------------- US$ US$ S$ ----------------------------------------------------------------------Net asset value per share 6.18 5.56 11 8.93 --------------------------------------------------------------------- The exchange rate of US$1=S$1.44 (31.12.2006: US$1=S$1.54) was used fortranslating assets and liabilities at the balance sheet date and US$1=S$1.50(31.12.2006: US$1=S$1.58) was used for translating the results for the year. The financial results for the year ended 31st December 2007 have been preparedin accordance with the International Financial Reporting Standards. Theseresults have not been audited or reviewed by the auditors. * The basis for calculating underlying profit and earnings is set out in Note 5 of this report.** The Sc equivalent is an estimate as the actual amount of the final dividend will be determined on Books Closure Date referred to in Note 16. CHAIRMAN'S STATEMENT Overview The Group performed well in 2007 following the difficult trading conditions thatwere experienced by Astra in the previous year. A low interest rate environment,strong recovery in the motor car market in Indonesia and high palm oil pricesled to an excellent increase in earnings. Performance The Group's revenue for the year ended 31st December 2007 increased by 24% toUS$8,896 million. Underlying profit for the year rose by 82% to US$374 million.Underlying earnings per share were USc108.28, up 79%. Profit attributable toshareholders increased by 52% to US$340 million. Astra's contribution to the underlying profit was 76% higher at US$356 millionwith its non-automotive activities performing particularly well and theirunderlying profit contribution exceeding that of the automotive businesses. Theshare of the underlying profit from the Group's other motor interests increasedby 34% to US$43 million. Corporate costs and withholding tax on dividends fromIndonesia amounted to US$25 million. At the half year, the Board decided that the proportion of the dividend payableat the interim stage should be rebalanced to represent approximately one thirdof the total dividend payable for the year and that the percentage of earningspaid out by way of dividend be raised. Accordingly, the interim dividend wasincreased from USc3.00 to USc11.00 per share less tax. The Board is nowrecommending a final tax exempt (one-tier) dividend of USc32.00 per share which,together with the interim dividend, will give a total dividend for 2007 ofUSc43.00 per share, compared to USc20.00 per share less tax in 2006. The finaldividend is available in cash in US Dollars or Singapore Dollars with a scripalternative. Business activity The Group took further steps to focus its investments with the disposal of a 40%interest in Ampang Investments, the owner of the Concorde Hotel in Malaysia, anda reduction to 15% of its shareholding in UMF, a consumer finance company inSingapore. These sales raised US$36 million and helped to strengthen the parentcompany balance sheet, which at the end of December 2007 showed net debt of justUS$31 million. During 2007, Astra benefited from the strong growth in the Indonesian economy asGDP rose by 6% supported by improved consumer sentiment following reductions indomestic interest rates, a relatively stable Rupiah and inflation contained at7%. In the motor car sector Astra's share of the new car market in 2007 was 52% andits share of the motorcycle market was 46%. While these market shares were downon 2006, particularly for motorcycles due to intense competition, they remainimpressive. A 69% increase in crude palm oil prices enhanced the performance of Astra AgroLestari, making it one of Astra's largest profit contributors in 2007. Thecompany is continuing to increase its planted area and to seek new land toexpand its oil palm plantations, while at the same time improving the yield ofexisting plantations. Following the acquisition of a coal mining concession in South Kalimantan inJanuary 2007, Astra's heavy equipment subsidiary, United Tractors, has beenactively seeking coal mining investment opportunities. In February 2008, itacquired a 70% effective interest in a further mining concession in CentralKalimantan. The Group's directly held motor operations in Singapore and Indonesia had a goodyear in 2007, while the profit contribution from Cycle & Carriage Bintang inMalaysia remained low and steps are being taken to restructure the business. Outlook Jardine Cycle & Carriage has entered 2008 with most of its businesses performingwell, although competition remains significant and any deterioration in theeconomic environment could adversely affect the markets in which the Groupoperates. Nevertheless, our sound finances and the quality of our operationsposition us well to meet any challenges. Anthony NightingaleChairman29th February 2008 Group Managing Director's Review The Group produced a strong recovery in earnings in 2007 as underlying profitincreased by 82% to US$374 million. Profit attributable to shareholders in 2007was US$340 million, after net non-trading losses of US$34 million arising mainlyfrom an impairment charge against the carrying value of Astra's motorcycledistribution franchise due to a reduction in market share and net losses on thedisposal of certain subsidiaries and associates, mitigated by a fair value gainon oil palm plantations. This compares with US$224 million in 2006 after anon-trading gain of US$19 million. All of Astra's major businesses recorded profit growth, producing an overallunderlying profit contribution to Jardine Cycle & Carriage's result of US$356million, up 76%. The profit contribution from Astra's automotive operations wasUS$174 million, up 42%, while its agribusiness, heavy equipment, financialservices and other businesses performed extremely well with their profitcontribution doubling to US$215 million. The underlying profit contribution fromthe Group's other directly held motor interests grew 34% to US$43 million. The Company's corporate costs of US$15 million were 17% lower than the previousyear following a reduction in interest expenses, while US$10 million ofwithholding tax on dividends from Indonesia was incurred. In addition, theGroup's share of Astra's corporate costs together with the adjustments requiredto align Astra's results with the Group's accounting policies was 15% higher atUS$33 million. The Group's consolidated net debt, excluding borrowings within Astra's financialservices operations, was US$235 million at 31st December 2007, US$501 millionlower than at the end of 2006 following strong operating cash flows. The debtwithin the Group's financial services operations of US$1,254 million was US$249million lower than the prior year end following a reduction in joint financingwith recourse. Astra The much improved trading conditions in Indonesia and record palm oil pricesprovided Astra, in which the Group has a 50.1% interest, with an excellentfoundation for profit growth in 2007. Astra reported a net profit for 2007,under Indonesian accounting standards, equivalent to US$711 million, an increaseof 75%. Astra's financial position benefited from strong operating cash flows and netdebt, excluding borrowings within its financial services operations, was reducedby US$352 million to US$182 million at the end of 2007. This represents a netdebt to shareholders' funds of 6%, down from 22% at the end of 2006. AutomotiveAstra's automotive businesses recovered strongly in 2007 producing acontribution to the Group's underlying profit of US$174 million, up 42%. The Indonesian wholesale motor vehicle market rose by 36% in 2007 to 434,000units. Astra's sales grew at a lesser rate of 28% to 223,000 units and itsmarket share was reduced to 52%, which is more in line with past levels. Duringthe year, Astra launched three new models and six revamped models that have beenwell received. The wholesale motorcycle market in Indonesia grew by 6% in 2007 to 4.7 millionunits, although it remained intensely competitive. The Astra Honda Motormanufacturing and distribution joint venture saw sales decline by 9% to 2.1million units leading to its market share falling to 46%. Two new models andthree revamped models were launched in 2007, which together with a revisedmarketing strategy have helped to underpin its market position. Overall,improvements in margins and a more stable retail share have enabled Astra toachieve a growth in earnings from the sector in 2007. The profit contribution from 86.7%-held subsidiary, Astra Otoparts, was wellahead of 2006 as its automotive component activities benefited from the recoveryin the Indonesian automotive market and, to a lesser extent, a growth inexports. Non-automotiveAstra's non-automotive businesses performed particularly well and theircontribution to the Group's underlying profit in 2007 doubled to US$215 million. The performance of Astra's consumer finance operations also reflected the growthin vehicle sales. The volume financed by Federal International Finance and AstraCredit Companies was 11% higher than 2006 at US$2.3 billion. Despite thisincrease in volume, the consumer finance loan book was 12% lower at the end of2007 at US$1.7 billion due to a greater proportion of joint funding withoutrecourse. The earnings at 44.5%-held Bank Permata improved in 2007 due to higher netinterest margins, growth of 11% in its loan book and profits on the sale ofmarketable securities. The bank also reduced its recurring operating expenseswith a voluntary redundancy exercise in the first half of the year. In agribusiness, the profit contribution to the Group from Astra's 79.7%-heldsubsidiary, Astra Agro Lestari, was 151% higher at some US$86 million. Palm oilproduction was relatively flat at 921,000 tonnes as poor weather conditionsaffected output at the start of the year. However, a 69% increase in the crudepalm oil prices achieved boosted revenues and profits. During 2007, the companyadded 19,000 hectares to its planted area, bringing its total to 235,000hectares. Heavy equipment, which includes 58.5%-held subsidiary United Tractors, alsoperformed well and generated a profit contribution to the Group of US$44million, up 42%. Sales of Komatsu equipment rose 54% to almost 3,500 units dueto strong demand in the mining, forestry, agriculture and constructionindustries in Indonesia. The company's mining subsidiary, Pamapersada Nusantara,overcame setbacks caused by adverse weather and operational interruptions in theearlier part of the year to achieve a 28% increase in coal extracted and a 4%increase in overburden removed. The group's information technology business and infrastructure investmentsperformed satisfactorily. Toll road operator, Marga Mandala Sakti, in whichAstra has a 34% shareholding, handled a further 5% in traffic volume, while30%-held water distributor, PAM Lyonnaise Jaya, maintained its sales of water at130 million cubic metres in 2007. Astra is reviewing further potentialinfrastructure investments. Other Motor Interests SingaporeThe profit contribution from the Group's Singapore motor operations increased by11% to US$33 million following a good performance by Mercedes-Benz. The overall passenger car market in Singapore declined by 9% in 2007 to 110,500units, while the commercial vehicle market fell by 19% to 11,500 units. TheGroup's passenger car sales were also 9% lower at 15,500 units, maintaining amarket share of 14%, while its commercial vehicle sales were 28% lower at 1,000units, giving a market share of 9%. Sales of Mercedes-Benz passenger cars rose by 21% to 3,900 units, with goodinterest in the facelifted E-Class. The new C-Class, which was launched inAugust 2007, was well received and is expected to generate good demand in 2008when the full range of variants becomes available. Mercedes-Benz commercialvehicle sales were relatively stable at 200 units. Sales of Mitsubishi passenger cars were 6% lower at 8,200 units, with the Lanceraccounting for 85% of the sales mix. Mitsubishi commercial vehicle sales fellsignificantly to just over 100 units in 2007 due to the lack of a replacementvan which meets Euro IV emissions standards. Kia sales fell by 37% to 3,200 units in the face of intense competitionexacerbated by the relative weakness in the Yen that led to Japanese marquesbecoming more price competitive. Citroen performed satisfactorily in its firstfull year of operation and achieved sales of 200 passenger cars and 700commercial vehicles. MalaysiaTrading conditions in the Malaysian automotive market remained difficultthroughout 2007. Cycle & Carriage Bintang, which is 59%-owned, continued tostruggle and made only a US$2 million contribution to underlying profit. Modestimprovements in its Mercedes-Benz operation offset the under-performance in itsother businesses, most of which remain unprofitable. Its loss-making Peugeotfranchise was discontinued in the last quarter of 2007. IndonesiaIn the stronger Indonesian automotive market, 37%-owned associate Tunas Rideanperformed extremely well. A profit contribution of US$8 million was made,compared with US$1 million in 2006. Ben KeswickGroup Managing Director29th February 2008 ----------------------------------------------------------------------------Jardine Cycle & Carriage Limited Consolidated Profit and Loss Account for the year ended 31 December ---------------------------------------------------------------------------- Restated 2007 2006 Change Note US$m US$m % Revenue 2 8,895.6 7,186.3 24Cost of sales (6,983.0) (5,733.3) 22 -------- --------Group profit 1,912.6 1,453.0 32 Other operating income 178.2 174.3 2Selling and distribution expenses (486.2) (568.0) -14Administrative expenses (509.9) (435.1) 17Other operating expenses (34.1) (16.2) 110 -------- --------Operating profit 1,060.6 608.0 74 -------- --------Financing charges (79.9) (94.1) -15Financing income 35.6 40.5 -12 -------- --------Net financing charges (44.3) (53.6) -17Share of associates' and joint ventures' results after tax 125.7 155.0 -19 -------- --------Profit before tax 2 1,142.0 709.4 61Tax 3 (317.5) (182.1) 74 -------- --------Profit after tax 2 824.5 527.3 56 ======== ======== Profit attributable to:Shareholders of the Company 340.1 223.8 52Minority interests 484.4 303.5 60 -------- -------- 824.5 527.3 56 ======== ========---------------------------------------------------------------------------- USc USc----------------------------------------------------------------------------Earnings per share 5 - basic 98.47 66.02 49 - diluted 98.47 65.98 49---------------------------------------------------------------------------- ----------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Balance Sheet at 31 December---------------------------------------------------------------------------- Restated Note 2007 2006 US$m US$mNon-current assetsIntangible assets 460.4 457.7Leasehold land use rights 403.7 429.9Property, plant and equipment 1,313.2 1,274.4Investment properties 28.0 33.0Plantations 514.6 460.1Interests in associates and joint ventures 1,342.9 1,372.3Other investments 133.9 94.8Non-current debtors 814.0 963.1Deferred tax assets 60.1 57.6Other non-current assets 64.3 76.5 -------- --------- 5,135.1 5,219.4 -------- ---------Current assetsStocks 642.9 613.2Current debtors 1,817.3 1,695.5Current tax assets 120.8 123.6Current investments 20.8 2.3 Bank balances and other liquid funds -------- --------- - non-financial services companies 529.6 395.6- financial services companies 166.7 172.8 -------- --------- 696.3 568.4 -------- --------- 3,298.1 3,003.0Non-current assets classified as held for sale 3.1 2.2 -------- --------- 3,301.2 3,005.2 -------- --------- Total assets 8,436.3 8,224.6 -------- ---------Non-current liabilitiesProvisions 17.8 15.5Long-term borrowings 7 -------- --------- non-financial services companies 323.7 409.6- financial services companies 615.5 722.7 -------- -------- 939.2 1,132.3Deferred tax liabilities 306.4 299.6Pension liabilities 42.3 41.8Other non-current liabilities 58.6 53.3 -------- --------- 1,364.3 1,542.5Current liabilitiesProvisions 29.7 26.3Current borrowings 7 -------- ---------- non-financial services companies 446.2 726.4- financial services companies 806.1 953.9 -------- --------- 1,252.3 1,680.3Current tax liabilities 136.3 36.3Current creditors 1,095.8 884.0 -------- --------- 2,514.1 2,626.9 -------- --------- Total liabilities 3,878.4 4,169.4 -------- --------- -------- ---------Net assets 4,557.9 4,055.2 EquityShare capital 8 555.2 495.7Fair value and other reserves 9 334.8 330.2Revenue reserve 10 1,269.7 1,079.7 -------- ---------Shareholders' funds 2,159.7 1,905.6Minority interests 11 2,398.2 2,149.6 -------- --------- Total equity 4,557.9 4,055.2 ======== ========= --------------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Statement of Recognised Income and Expense for the year ended 31 December-------------------------------------------------------------------------------------- Restated 2007 2006 US$m US$m Revaluation surplus of land and buildings, net of tax 25.6 35.2 Fair value changes of hedging derivatives, net of tax (1.3) (1.4) Fair value changes of available-for-sale investments, net of tax (12.3) 17.4 Actuarial loss on defined benefit pension plans, net of tax (0.9) (10.8) Translation difference (164.6) 296.2 Reserves realised 0.7 - -------- --------Net gain/(loss) recognised directly in equity (152.8) 336.6 Profit after tax 824.5 527.3 -------- --------Total recognised income and expense for the year 671.7 863.9 ======== ======== Total recognised income and expense attributable to: Shareholders of the Company 274.6 374.1 Minority interests 397.1 489.8 -------- -------- 671.7 863.9 ======== ======== --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedCompany Balance Sheet at 31 December-------------------------------------------------------------------------------- 2007 2006 US$m US$m Non-current assetsProperty, plant and equipment 0.7 0.9Interests in subsidiaries 1,276.3 1,202.0Interests in associates 26.4 47.8Other investment 6.5 - -------- --------- 1,309.9 1,250.7 -------- --------- Current assetsDebtors 8.4 20.0Bank balances and other liquid funds 6.9 29.1 -------- --------- 15.3 49.1 -------- --------- Total assets 1,325.2 1,299.8 -------- ---------Non-current liabilitiesDeferred tax liabilities 0.3 0.4 -------- --------- 0.3 0.4 -------- --------- Current liabilitiesCurrent borrowings 38.1 182.4Current tax liabilities 0.8 0.8Creditors 74.6 70.1 -------- --------- 113.5 253.3 -------- --------- Total liabilities 113.8 253.7 -------- --------- Net assets 1,211.4 1,046.1 ======== ========= Share capital and reserves Share capital 555.2 495.7Share option reserve 0.3 0.3Revenue reserve 655.9 550.1 -------- ---------Shareholders' funds 1,211.4 1,046.1 ======== ========= Net asset value per share US$3.47 US$3.05 --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedCompany Statement of Recognised Income and Expenses-------------------------------------------------------------------------------- 2007 2006 US$m US$m Translation difference 70.0 75.9 --------- --------Net gain recognised directly in equity 70.0 75.9 Profit after tax 115.8 130.8 --------- --------Total recognised income and expense for the year 185.8 206.7 ========= ======== Total recognised income and expense attributable to shareholders of the Company 185.8 206.7 ========= ======== --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedConsolidated Statement of Cash Flows for the year ended 31 December-------------------------------------------------------------------------------- Restated 2007 2006 Note US$m US$m Cash flows from operating activities Cash generated from operations 12 1,491.6 1,592.7 -------- --------Interest paid (79.9) (89.2)Interest received 35.6 40.9Other finance costs paid (6.2) (1.4)Income tax paid (211.8) (290.9) -------- -------- (262.3) (340.6) -------- --------Net cash flows from operating activities 1,229.3 1,252.1 Cash flows from investing activities -------- --------Sale of leasehold land use rights 10.9 19.6Sale of property, plant and equipment 41.4 46.9Sale of investment properties 6.3 -Sale of shares in associates and joint ventures 33.6 0.9Sale of other investments 7.3 -Sale of subsidiaries, net of cash disposed - (28.6)Purchase of intangible assets (22.0) (1.0)Purchase of leasehold land use rights (8.7) (17.3)Purchase of property, plant and equipment (332.2) (310.9)Purchase of plantations (41.1) (21.5)Purchase of shares in associates and joint ventures - (175.2)Purchase of other investments (61.2) (80.0)Acquisition of subsidiaries, net of cash acquired 2.0 (6.8)Capital repayment of other investments 8.1 26.8Dividends received from associates and joint ventures (net) 39.3 143.9 -------- --------Net cash flows used in investing activities (316.3) (403.2) Cash flows from financing activities -------- --------Proceeds from issue of shares 0.2 0.2Drawdown of loans 2,193.8 2,407.4Repayment of loans (2,799.2) (3,055.6)Investment by minority interests 0.4 9.5Dividends paid to minority interests (148.9) (174.1)Dividends paid (net) (20.7) (12.7) -------- --------Net cash flows used in financing activities (774.4) (825.3) -------- -------- Net change in cash and cash equivalents 138.6 23.6Cash and cash equivalents at the beginning of the year 551.9 491.0Effect of exchange rate changes (18.4) 37.3 -------- --------Cash and cash equivalents at the end of the year 672.1 551.9 ======== ======== --------------------------------------------------------------------------------Jardine Cycle & Carriage LimitedNotes-------------------------------------------------------------------------------- 1 Basis of preparation The financial statements are consistent with those set out in the 2006 auditedaccounts which have been prepared in accordance with International FinancialReporting Standards ("IFRS"). There have been no changes to the accountingpolicies described in the 2006 audited accounts except for the adoption of theamendment, new standard and interpretations to existing standards shown below: Amendment to IAS 1 Presentation of Financial Statements - Capital Disclosure IFRS 7 Financial Instruments: DisclosuresIFRIC 8 Scope of IFRS 2 Share-based PaymentIFRIC 9 Reassessment of Embedded DerivativesIFRIC 10 Interim Financial Reporting and Impairment The adoption of the amendment, new standard and interpretations did not have amaterial impact on the results of the Group. The preparation of financial statements in conformity with IFRS requires the useof certain critical accounting estimates. It also requires management toexercise its judgment in the process of applying the Group's accounting polices.Estimates and judgments used in preparing the financial statements arecontinually evaluated and are based on historical experience and other factors,including expectations of future events that are believed to be reasonable. Theresulting accounting estimates will, by definition, seldom equal the relatedactual results. 2 Profit before tax GroupYear ended 31 December 2007 2006 Change US$m US$m %Revenue:- 1st half 4,197.1 3,583.2 17- 2nd half 4,698.5 3,603.1 30 ------- ------- 8,895.6 7,186.3 24 ======= =======Profit after tax:- 1st half 373.7 249.9 50- 2nd half 450.8 277.4 63 ------- ------- 824.5 527.3 56 ======= ======= Profit before tax is determined after including: Depreciation of property, plant and equipment (269.2) (222.3) 21Amortisation of leasehold land use rights and intangible assets (18.4) (14.9) 23Fair value changes of: - plantations 35.0 22.2 58- investment properties 1.7 5.8 -71- financial derivative contracts 2.0 (15.8) nmProvision for:- closure costs (3.7) (0.3) nm- warranty and goodwill claims (3.9) (6.4) -39Profit/(loss) on disposal of:- leasehold land use rights 7.2 13.0 -45- property, plant and equipment 11.6 11.5 1- subsidiaries (1.5) 11.3 nm- associates and joint ventures (5.1) - 100- repossessed assets (73.3) (103.8) -29Net write-down of stocks (5.4) (2.0) 170Impairment of debtors (68.5) (119.8) -43Interest income from other investments 7.7 6.7 15Dividend income from other investments 4.9 5.1 -4Net exchange gain/(loss) (16.3) 48.9 nmExcess of net fair value of identified assets, liabilities and contingent liabilities acquired over cost of business combination 5.4 0.2 nm ======= =======nm: not meaningful 3 Tax The provision for income tax is based on the statutory tax rates of therespective countries in which the companies operate after taking into accountnon-deductible expenses and group tax relief. 4 Dividends Group and CompanyYear ended 31 December 2007 2006 Change US$m US$m %Dividends paid (net of tax):- Final dividend in respect of 2006 of US$0.17 per share, (2006: in respect of 2005 of US$0.15) less income tax 48.2 40.6 19- Interim dividend in respect of 2007 of US$0.11 per share, (2006: US$0.03) less income tax 31.8 8.2 288 ------ ------ 80.0 48.8 64 ====== ====== Value of scrip dividends allotted and issued:- Final dividend of previous financial year 35.7 30.6 17- Interim dividend of current financial year 23.6 5.5 329 ------ ------ 59.3 36.1 64 ====== ====== The Board is recommending a final dividend of USc32.00 per share which, togetherwith the interim dividend, will give a total dividend for the year of USc43.00 per share. 5 Earnings per share GroupYear ended 31 December 2007 2006 US$m US$mBasic earnings per share Profit attributable to shareholders 340.1 223.8 Weighted average number of ordinary shares in issue (millions) 345.4 339.0 Basic earnings per share USc98.47 USc66.02 ======= =======Diluted earnings per share Profit attributable to shareholders 340.1 223.8 Weighted average number of ordinary shares in issue (millions) 345.4 339.0Adjustment for assumed conversion of share options (millions) - 0.2 ------- -------Weighted average number of ordinary shares for diluted earnings per share (millions) 345.4 339.2 ======= =======Diluted earnings per share USc98.47 USc65.98 ======= ======= Underlying profit attributable to shareholders 374.0 205.2 Basic underlying earnings per share USc108.28 USc60.53 ======= ======= Diluted underlying earnings per share USc108.28 USc60.50 ======= ======= A reconciliation of the profit attributable to shareholders and underlyingprofit attributable to shareholders is as follows: GroupYear ended 31 December 2007 2006 US$m US$m Profit attributable to shareholders 340.1 223.8 Less: Non-trading items (net of tax and minority interests) ------- -------Impairment of motorcycle distributionfranchise rights in an associate (37.6) -Fair value changes of:- plantations 9.5 6.1- investment properties 0.4 2.5Net gain/(loss) on disposal/liquidation of subsidiaries and associates (5.8) 3.5Restructuring of operations (4.0) -Profit on disposal of surplus properties 0.2 6.5Others 3.4 - ------- ------- (33.9) 18.6 ------- -------Underlying profit attributable to shareholders 374.0 205.2 ======= ======= The underlying profit attributable to shareholders by business is shown below: Group 2007 2006 Change US$m US$m %Astra ------- -------Motor vehicles 84.9 53.2 60Motorcycles 65.0 56.5 15Other automotive 24.3 12.9 88 ------- -------Total automotive 174.2 122.6 42 ------- -------Agribusiness 86.0 34.2 151Financial services 78.6 39.5 99Heavy equipment 43.6 30.6 42Other non-automotive 6.5 3.4 91 ------- -------Total non-automotive 214.7 107.7 99 Corporate costs and other (32.6) (28.4) 15 ------- ------- 356.3 201.9 76 ------- -------Other motor interestsSingapore 32.8 29.6 11Malaysia 2.3 0.9 156Indonesia (Tunas Ridean) 7.5 1.3 477 ------- ------- 42.6 31.8 34 ------- -------Corporate costs and withholding taxCorporate costs (14.8) (17.8) -17Withholding tax on dividends from Indonesia (10.1) (10.7) -6 ------- ------- (24.9) (28.5) -13 ------- ------- ------- -------Underlying profit attributable to shareholders 374.0 205.2 82 ======= ======= 6 Segment information (a) Primary reporting format - business segments The segment results for the years ended 31 December 2007 and 2006 are as follows: Revenue Segment Results 2007 2006 2007 2006 US$m US$m US$m US$m Astra: - Automotive 4,181.4 3,308.1 234.7 127.9 - Financial services 797.6 805.3 173.5 88.4 - Heavy equipment 1,982.3 1,500.0 259.6 176.8 - Agribusiness 650.5 410.8 352.3 155.0 - Others 80.6 69.8 11.3 11.9 - Elimination (35.6) (26.6) 0.9 1.1 ------- ------- ------- -------- 7,656.8 6,067.4 1,032.3 561.1 Motor 1,238.8 1,118.9 43.2 51.9 Others - - (14.9) (5.0) ------- ------- ------- -------- 8,895.6 7,186.3 1,060.6 608.0 ======= ======= (44.3) (53.6) Net financing charges Share of associates' and joint ventures' results: ------- -------- - Astra 116.0 151.1 - Motor 9.2 3.2 - Others 0.5 0.7 ------- -------- 125.7 155.0 ------- --------Profit before tax 1,142.0 709.4 Tax (317.5) (182.1) ------- --------Profit after tax 824.5 527.3 ======= ======== The segment assets and liabilities as at 31 December 2007 and 2006 and capitalexpenditure for the years then ended are as follows: Capital Segment Assets Segment Liabilities Expenditure 2007 2006 2007 2006 2007 2006 US$m US$m US$m US$m US$m US$m Astra: ------- ------- ------- ------- ------ ------- Automotive 1,464.1 1,439.8 387.4 341.2 110.0 123.7 - Financial services 2,070.6 2,263.1 1,731.9 1,971.9 31.7 19.1 - Heavy equipment 1,379.4 1,263.8 338.7 203.8 195.2 221.5 - Agribusiness 897.3 780.0 69.3 40.3 85.7 62.7 - Others 77.5 72.1 22.0 19.9 8.5 7.5 - Elimination (20.3) (8.3) (20.0) (7.7) - - ------- ------- ------- ------- ------ ------ 5,868.6 5,810.5 2,529.3 2,569.4 431.1 434.5 Motor 352.3 348.2 125.7 117.7 4.4 13.8 Others 1.1 15.2 10.9 10.2 0.3 0.6 ------- ------- ------- ------- ------ ------ 6,222.0 6,173.9 2,665.9 2,697.3 435.8 448.9 Investments in associates and joint ventures: ------- ------- ------- ------- ------ ------ - Astra 1,305.0 1,305.0 - - - - - Motor 37.9 61.5 - - - - - Others - 5.8 - - - - ------- ------- ------- ------- ------ ------ 1,342.9 1,372.3 - - - - Unallocated assets/ liabilities 871.4 678.4 1,212.5 1,472.1 - - ------- ------- ------- ------- ------ ------ 8,436.3 8,224.6 3,878.4 4,169.4 435.8 448.9 ======= ======= ======= ======= ====== ====== Other segment items are as follows: Depreciation and amortisation Impairment of debtors 2007 2006 2007 2006 US$m US$m US$m US$mAstra:- Automotive 89.1 79.0 0.6 1.3- Financial services 13.3 10.8 77.7 88.1- Heavy equipment 149.3 115.8 (10.2) 30.5- Agribusiness 19.2 16.1 (0.1) -- Others 8.0 7.8 0.2 -- Elimination - - - 0.2 ------- ------- ------- ------- 278.9 229.5 68.2 120.1Motor 8.5 7.5 0.3 (0.3)Others 0.2 0.2 - - ------- ------- ------- ------- 287.6 237.2 68.5 119.8 ======= ======= ======= ======= The Group is organised into two main business segments, namely Astra and Motorwhile the Others segment consists of investment holding activities. Astra isfurther organised into four main business segments, namely Automotive, FinancialServices, Heavy Equipment and Agribusiness while its Others segment comprisemainly information technology and infrastructure businesses. Inter-segment revenue is not significant. Unallocated assets and liabilitiescomprise other investments, tax assets and liabilities, cash and cashequivalents and borrowings. Capital expenditure comprises additions to property,plant and equipment, intangible assets, investment properties and plantations,including those arising from acquisitions of subsidiary undertakings. (b) Secondary reporting format - geographical segments The Group's two business segments operate in three main geographical areas: Singapore is the home country of the Company. The areas of operation are motorvehicle distribution, retail and provision of after-sales services and otherinvestment holding activities. Indonesia - the areas of operation are mainly the assembly, distribution andretailing of motor vehicles and motorcycles, financial services, heavyequipment, agribusiness and others consisting mainly of information technologyand infrastructure. Malaysia - the areas of operation are mainly motor vehicle distribution, retailand provision of after-sales services. Revenue is based on the country in which the customer is located. It would notbe materially different if it is based on the country in which the order isreceived. Total assets and capital expenditure are shown by the geographicalarea in which the assets are located. Total Capital Revenue assets expenditure US$m US$m US$mYear ended 31 December 2007Singapore 1,046.6 289.0 2.2Indonesia 7,656.8 8,018.4 431.1Malaysia 192.2 128.7 2.5Others - 0.2 - -------- -------- --------- 8,895.6 8,436.3 435.8 ======== ======== ========= Total Capital Revenue assets expenditure US$m US$m US$mYear ended 31 December 2006Singapore 941.7 317.1 10.7Indonesia 6,067.4 7,758.2 434.5Malaysia 175.2 149.1 3.7Others 2.0 0.2 - -------- -------- --------- 7,186.3 8,224.6 448.9 ======== ======== ========= 7 Borrowings Group 2007 2006 US$m US$mLong-term borrowings:- secured 718.2 603.0- unsecured 221.0 529.3 -------- -------- 939.2 1,132.3 -------- --------Current borrowings:- secured 845.2 542.6- unsecured 407.1 1,137.7 -------- -------- 1,252.3 1,680.3 -------- -------- -------- --------Total borrowings 2,191.5 2,812.6 ======== ======== Certain subsidiaries of the Group have pledged their assets in order to obtainbank loans and guarantee facilities from financial institutions. The value ofassets pledged was US$1,224.5 million (31 December 2006: US$1,086.6million). 8 Share capital Company 2007 2006 US$m US$m Share capital:Balance at 1 January 495.7 185.4Transfer from share premium - 274.0Issue of shares under Scrip Dividend Scheme 59.3 36.1Issue of shares under CCL Executives' Shares Option Schemes 0.2 0.2 -------- --------Balance at 31 December 555.2 495.7 ======== ========Share premium:Balance at 1 January - 274.0Transfer to share capital - (274.0) -------- --------Balance at 31 December - - ======== ======== The number of shares issued as at 31 December 2007 was 349,260,506 (31 December2006: 342,611,386). The Company did not hold any treasury shares as at 31December 2007 (31 December 2006: Nil). Pursuant to the abolition of the concepts of authorised share capital and thenominal value of share capital in the Companies (Amendment) Act 2005 which tookeffect on 30 January 2006, the amount in share premium has become part of theCompany's share capital. 9 Fair value and other reserves Group Company 2007 2006 2007 2006Composition: US$m US$m US$m US$m Fair value reserve 2.5 9.5 - -Asset revaluation reserve 329.6 317.9 - -Hedging reserve (0.9) (0.8) - -Share option reserve 0.3 0.3 0.3 0.3Other reserve 3.3 3.3 - - ------- ------- ------- -------- 334.8 330.2 0.3 0.3 ======= ======= ======= ======== Movements: Fair value reserveBalance at 1 January 9.5 1.2 - -Fair value changes of available-for-sale investments, net of tax (7.5) 8.3 - -Reserve realised 0.5 - - - ------- ------- ------- --------Balance at 31 December 2.5 9.5 - - ======= ======= ======= ======== Asset revaluation reserveBalance at 1 January 317.9 302.0 - -Revaluation surplus of land and buildings, net of tax 12.8 16.0 - -Reserve realised on disposal of land and buildings (1.1) (0.1) - - ------- ------- ------- --------Balance at 31 December 329.6 317.9 - - ======= ======= ======= ========Hedging reserveBalance at 1 January (0.8) - - -Fair value changes of derivatives (0.6) (0.8) - -Reserve realised 0.5 - - - ------- ------- ------- --------Balance at 31 December (0.9) (0.8) - - ======= ======= ======= ========Share option reserveBalance at 1 January 0.3 0.3 0.3 0.3 ------- ------- ------- --------Balance at 31 December 0.3 0.3 0.3 0.3 ======= ======= ======= ========Other reserveBalance at 1 January 3.3 3.8 - -Reserve realised on disposal of subsidiary - (0.5) - - ------- ------- ------- --------Balance at 31 December 3.3 3.3 - - ======= ======= ======= ======== 10 Revenue reserve Group Company 2007 2006 2007 2006 US$m US$m US$m US$mComposition:Translation reserve (3.2) 66.9 223.2 153.2Retained earnings 1,272.9 1,012.8 432.7 396.9 ------- ------- ------- ------- 1,269.7 1,079.7 655.9 550.1 ======= ======= ======= =======Movements:Translation reserveBalance at 1 January 66.9 (63.4) 153.2 77.3Translation difference (76.6) 131.6 70.0 75.9Reserve realised on disposal of subsidiaries and associates 6.5 (1.3) - - ------- ------- ------- -------Balance at 31 December (3.2) 66.9 223.2 153.2 ======= ======= ======= ======= Retained earningsBalance at 1 January 1,012.8 840.7 396.9 314.9Asset revaluation reserve realised on disposal of land and buildings 1.1 0.1 - -Capital reserve realised on disposal of subsidiary - 0.5 - -Actuarial loss on defined benefit pension plans, net of tax (0.5) (4.6) - -Gain on dilution of interest in investments - 1.1 - -Reserves realised (0.6) - - -Profit attributable to shareholders 340.1 223.8 115.8 130.8Dividends (net) (80.0) (48.8) (80.0) (48.8) ------- ------- ------- -------Balance at 31 December 1,272.9 1,012.8 432.7 396.9 ======= ======= ======= ======= 11 Minority interests Group 2007 2006 US$m US$m Balance at 1 January 2,149.6 1,987.2 ------- -------Revaluation surplus of land and buildings, net of tax 12.8 19.2Fair value changes of available-for-sale investments, net of tax (4.8) 9.1Fair value changes of hedging derivatives (0.7) (0.6)Actuarial loss on defined benefit pension plans, net of tax (0.4) (6.2)Loss on dilution of interest in investments - (1.1)Translation difference (94.5) 165.9 ------- -------Net gain/(loss) recognised directly in equity (87.6) 186.3Reserves realised 0.3 -Profit for the year 484.4 303.5 ------- -------Total recognised gain for the year 397.1 489.8Dividends (net) (148.9) (174.1)Issue of shares 0.4 9.5Disposal of subsidiaries - (162.8) ------- -------Balance at 31 December 2,398.2 2,149.6 ======= ======= 12 Cash flows from operating activities Group 2007 2006 US$m US$m Profit before tax 1,142.0 709.4 Adjustments for: -------- --------Financing income (35.6) (40.5)Financing charges 79.9 94.1Share of associates' and joint ventures' (125.7) (155.0) resultsDepreciation and amortisation of property, plant and equipment, leasehold land use rights and intangible assets 287.6 237.2Impairment of : - property, plant and equipment 0.2 -- debtors 68.5 119.8(Profit)/loss on disposal of:- leasehold land use rights (7.2) (13.0)- other investments (0.3) -- property, plant and equipment (11.6) (11.5)- plantations 0.2 0.2- repossessed assets 73.3 103.8- subsidiaries 1.5 (11.3)- associates and joint ventures 5.1 -Fair value changes of:- investment properties (1.7) (5.8)- plantations (35.0) (22.2)Revaluation deficit on property, plant and 4.2 1.4 equipmentWrite-down of stocks 5.4 2.0Increase in provisions 10.6 11.6Foreign exchange (gain)/loss 29.8 (41.1)Excess of net fair value of identifiable assets, liabilities and contingent liabilities acquired over cost of business combination (5.4) (0.2) -------- -------- 343.8 269.5 -------- --------Operating profit before working capital changes 1,485.8 978.9 Changes in working capital: -------- -------- Stocks (42.3) 111.8 Financing debtors 42.2 616.7 Debtors (227.6) (68.2) Creditors 250.4 (68.5) Pensions 3.0 5.6 Financial derivatives (19.9) 16.4 -------- -------- 5.8 613.8 -------- --------Cash flows from operations 1,491.6 1,592.7 ======== ======== 13 Comparative figures The following comparative figures of the Group consolidated balance sheet andprofit and loss account have been reclassified to conform with the currentyear's presentation: Before After Reclassification Reclassification Reclassification US$m US$m US$m Other investments 99.8 (5.0) 94.8Other non-current assets 71.5 5.0 76.5Current debtors 1,694.8 0.7 1,695.5Current investments 3.0 (0.7) 2.3Long-term borrowings - non-financial services 325.0 84.6 409.6Other non-current liabilities 137.9 (84.6) 53.3Current borrowings - non-financial services 675.3 51.1 726.4Current creditors 935.1 (51.1) 884.0Other operating income 168.1 6.2 174.3Selling and distribution expenses (464.2) (103.8) (568.0)Other operating expenses (120.0) 103.8 (16.2)Net financing charges (55.3) 1.7 (53.6)Profit before tax 701.5 7.9 709.4Tax (174.2) (7.9) (182.1) ========= ========= ========== 14 Interested person transactions Aggregate value of all interested person transactions (excluding Aggregate value of all transactions less than interested person S$100,000 and transactions conducted transactions conducted under shareholders' under shareholders' mandate pursuant to Rule mandate pursuant to Rule 920 (excluding transactions 920) less than S$100,000)Name of interested person --------------------------- --------------------------- US$m US$mThree months ended 31 December 2007Jardine Matheson Limited- management consultancy services - 0.8Sogood Enterprises Limited- sale of an associate 12.1 - --------------------------- --------------------------- 12.1 0.8 =========================== =========================== Year ended 31 December 2007Jardine Matheson Limited- management consultancy services - 1.8Jardine Matheson (Singapore) Ltd- rental of premises - 0.1Jardine Engineering (Singapore) Pte Ltd- maintenance of air-conditioning equipment - 0.1Sogood Enterprises Limited- sale of an associate 12.1 -Director of the Company, Owen Howell-Price*- sale of a motor vehicle 0.2 -- purchase of a used motor vehicle 0.1 - --------------------------- --------------------------- 12.4 2.0 =========================== =========================== * transactions were entered into before retirement from the Board at the end ofthe AGM on 30 April 2007 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 101,000as at 31 December 2007 (31 December 2006: 291,000). Between 1 October 2007 and 31 December 2007, 48,000 ordinary shares were issuedfor 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 atthe exercise prices of S$1.664 and S$4.340 per share. On 17 October 2007,2,401,043 ordinary shares were allotted and issued to the eligible members ofthe Company who have elected to participate in the Jardine Cycle & CarriageLimited Scrip Dividend Scheme in respect of the interim dividend of US$0.11 perordinary share less 18% Singapore Income Tax for the financial year ended 31December 2007 at the issue price of S$14.80 for each new share. Except for those mentioned above, there were no other rights, bonus or equityissues during the period between 1 October 2007 and 31 December 2007. 16 Closure of books NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members willbe closed from 5.00 pm on Thursday, 15 May 2008 to Friday, 16 May 2008 for thepurpose of determining shareholders' entitlement to the final dividend. Duly completed transfers received by Jardine Cycle & Carriage Limited's ShareRegistrar, M & C Services Private Limited at 138 Robinson Road #17-00, TheCorporate Office, Singapore 068906 up to 5.00 p.m. on Thursday, 15 May 2008("Books Closure Date") will be registered before entitlements to the finaldividend are determined. Shareholders whose securities accounts with The CentralDepository (Pte) Limited ("CDP") are credited with shares as at the BooksClosure Date will be entitled to the final dividend. The final dividend will bepaid on or about Thursday, 3 July 2008. As in the previous years, shareholderswill continue to have the option to receive the dividend in scrip. Shareholderswho do not elect for the scrip alternative will have the option to receive thedividend in Singapore dollars. In the absence of any election, the dividend willbe paid in US dollars. Details on these electives will be furnished toshareholders in due course. 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 non-trading items set out in note 5 of this report. No significant transaction or event has occurred between 1 January 2008 and thedate of this report other than on 11 February 2008, PT United Tractors Tbk, a58.4%-held subsidiary of PT Astra International Tbk, acquired a 70% interest inPT Tuah Turangga Agung ("TTA") for US$115.6 million. TTA through a subsidiaryholds coal mining rights in Central Kalimantan. 18 Notice pursuant to Rule 704(11) of the Listing Manual Pursuant to Rule 704(11) of the SGX-ST Listing Manual, Jardine Cycle & CarriageLimited wishes to announce that no person occupying a managerial position in theCompany or any of its principal subsidiaries is a relative of a director orchief executive officer or substantial shareholder of the Company. - end - For further information, please contact:Jardine Cycle & Carriage LimitedHo Yeng Tat Tel: 65 64708108 The full text of the Financial Statements and Dividend Announcement for the yearended 31 December 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