Company Announcements

Jardine Cycle & Carriage Ltd – Half Year Results

Source: RNS
RNS Number : 1275U
Jardine Matheson Hldgs Ltd
28 July 2022
 


To:  Business Editor                                                                          28th July 2022

                                                                                                           For immediate release

 

 

Jardine Cycle & Carriage Limited

2022 Half-Year Financial Statements and Dividend Announcement

 

 

 

 

The following announcement was issued today by the Company's 75.9%-owned subsidiary, Jardine Cycle & Carriage Limited.

 

 

 

 

For further information, please contact:

 

Jardine Matheson Limited

Joey Ho                                                                                                 (65) 9765 0717

 

Brunswick Group Limited

Ben Fry                                                                                                  (65) 9017 9886

 

 

 

28th July 2022                                                

 

JARDINE CYCLE & CARRIAGE LIMITED

2022 HALF-YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

 

Highlights

 

·   

Underlying profit 51% higher at US$522 million

·   

Higher earnings principally from Astra and THACO

·   

Interim dividend per share increased from US¢18 to US¢28, reflecting the Board's decision to pay out a higher share of the full-year dividend as interim

 

 

"The Group performed strongly in the first half of 2022 and achieved a record half-year underlying profit, mainly due to higher contributions from Astra and THACO. Astra's performance, in particular, benefited from improved economic conditions and higher commodity prices. The Group expects results in the second half of the year to  remain strong, although it remains cautious as a result of global economic challenges, ongoing geopolitical developments and the continuing impact of the pandemic."

 

Ben Keswick, Chairman

 

 

Group Results



 

 

 


Six months ended 30th June

 


2022

US$m

2021

US$m

Change

%

2022

S$m

Revenue

10,681

8,287

29%

14,618

Underlying profit attributable to

 


 

 

shareholders *

522

346

51%

715

Non-trading items^

(35)

 (120)

-71%

(48)

Profit attributable to shareholders

487

226

115%

667


US¢

US¢

 

Underlying earnings per share *

132

88

51%

181

Earnings per share

123

57

115%

169

Interim dividend per share

28

18

56%

38


At

30.6.2022

At

31.12.2021

 

At

30.6.2022


US$m

US$m

 

S$m

Shareholders' funds

7,351

7,368

  -

10,233


US$

US$

 

S$

Net asset value per share

18.60

18.64

 -

25.89

 

The exchange rate of US$1=S$1.39 (31st December 2021: US$1=S$1.35) was used for translating assets and liabilities at the balance sheet date, and US$1=S$1.37 (30th June 2021: US$1=S$1.33) was used for translating the results for the period. The financial results for the six months ended 30th June 2022 and 30th June 2021 have been prepared in accordance with International Financial Reporting Standards and have not been audited or reviewed by the auditors.

 

*       The Group uses 'underlying profit attributable to shareholders' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in Note 6 to the condensed financial statements.  Management considers this to be a key performance                measurement that enhances the understanding of the Group's underlying business performances.

^       Included in 'non-trading items' are unrealised gains/losses arising from the revaluation of the Group's equity investments.
nm not meaningful

 

 

CHAIRMAN'S STATEMENT

 

Overview

 

Jardine Cycle & Carriage ("JC&C" or "the Group") delivered strong results in the first half of 2022, compared to the same period in 2021, mainly due to higher contributions from Astra and THACO.

 

Astra contributed US$465 million to the Group's underlying profit, 58% higher than the same period last year, driven primarily by improved economic conditions and higher commodity prices.

 

THACO contributed US$52 million, 43% higher than the same period last year, due to a strong automotive performance.

 

Direct Motor Interests contributed US$28 million, an increase of 20% compared to the same period last year. Lower profits from the Singapore operations were offset by an improved performance by Tunas Ridean in Indonesia.

 

Other Strategic Interests contributed US$34 million, 13% higher than the same period last year, mainly due to higher profits from Siam City Cement and REE.

 

Exchange losses of US$35 million from the translation of foreign currency loans at JC&C parent company were higher than in the same period last year. Other corporate costs saw an increase  mainly due to higher net financing charges.

 

The Group's underlying profit attributable to shareholders increased by 51% to US$522 million. After accounting for non-trading items, which mainly comprised unrealised gains and losses arising from the revaluation of the Group's equity investments, the Group's profit attributable to shareholders was US$487 million, compared to US$226 million in the same period last year.

 

The Group's consolidated net cash position, excluding the net borrowings from Astra's financial services subsidiaries, was US$884 million at the end of June 2022, compared to US$770 million at the end of 2021. Net debt within Astra's financial services subsidiaries was at US$2.4 billion. JC&C parent company's net debt was US$1.5 billion at the end of June 2022.

 

During the first half of the year, JC&C slightly increased its interest in Cycle & Carriage Bintang from 89.0% to 89.99%, through on-market purchases. In July, it announced a general offer to acquire the remaining shares in the company. JC&C also increased its interest in REE from 31.0% to 32.9%.

 

Group Review

 

The contributions to JC&C's underlying profit attributable to shareholders by business segment were as follows:  


 

Contribution to JC&C's underlying profit

 


 

Six months ended 30th June

 

 

Business segments

 

2022

US$m

2021

US$m

Change

%

 

 

Astra

 

465

293

58%

 

THACO

 

52

37

43%

 

Direct Motor Interests

 

28

24

20%

 

Other Strategic Interests

 

34

29

13%

 

Corporate Costs - exchange losses

 

(35)

(21)

64%

 

Corporate Costs - others

 

(22)

(16)

    40%

 

Underlying profit attributable to

   shareholders

 

 

522

 

346

 

51%

 

 

Astra

 

Astra contributed US$465 million to JC&C's underlying profit, 58% higher than the same period last year. Excluding the unrealised gain from the revaluation of its equity investments, Astra reported a net profit equivalent to US$998 million under Indonesian accounting standards, with stronger performances from all its businesses, and particularly its automotive, financial services, heavy equipment and mining operations.

 

Automotive

 

Net income increased by 29% to US$295 million, reflecting higher sales volumes. Key points are as follows:

 

·    The wholesale car market increased by 21% in the first half to 475,000 units. Astra's car sales were 23% higher at 259,000 units, with its market share increasing from 53% to 54%. 

·    The wholesale market for motorcycles decreased by 8% in the first half to 2.2 million units. Astra's Honda motorcycle sales were 13% down to 1.6 million units due to production constraints caused by semiconductor supply issues, which led to a decline in market share from 77% to 73%.

·    Components business, Astra Otoparts, reported a 62% increase in net profit to US$30 million, mainly due to higher revenues from the original equipment manufacturer and replacement market segments.

 

Financial Services

 

Net income increased by 36% to US$200 million due to higher contributions from the consumer finance businesses. Key points are as follows:

 

·    Consumer finance businesses saw an 18% increase in the amounts financed to US$3.3 billion. The net income contribution from the car-focused finance companies increased by 47% to US$57 million due to larger loan portfolios, and the contribution from the motorcycle-focused financing business increased by 60% to US$103 million, mainly due to lower levels of non-performing loans.

·    General insurance company, Asuransi Astra Buana, reported a 6% increase in net income to US$44 million, due to higher underwriting income and investment income.

 

Heavy Equipment, Mining, Construction and Energy

 

Net income increased significantly from US$187 million to US$427 million, mainly due to improved profits from heavy equipment sales, mining contracting and coal mining, all of which benefited from higher coal prices. However, coal operating volumes were adversely impacted by the temporary coal export ban. Key points are as follows:

 

·   

Komatsu heavy equipment sales increased from 1,361 units to 2,900 units, while revenue from its parts and service business was also higher.

·   

Mining contracting operations reported a 13% decrease in coal production at 50 million tonnes but saw a 7% increase in overburden removal volume at 437 million bank cubic metres.

·   

Coal mining subsidiaries reported a 8% decline in coal sales at 5.8 million tonnes, including 1.3 million tonnes of metallurgical coal. However, this volume impact was more than offset by higher coal selling prices.

·   

Agincourt Resources saw 18% lower gold sales at 144,000 oz.

·   

General contractor, Acset Indonusa, reported a net loss of US$8 million in the period, compared to a net loss of US$11 million in the same period last year. The company continued to be impacted by the slowdown of several ongoing projects and reduced construction project opportunities during the pandemic.

 

 

Agribusiness

 

Net income increased by 25% to US$44 million, mainly due to improved crude palm oil prices which offset lower sales resulting from the temporary export ban on palm oil.

 

Infrastructure and Logistics

 

Astra's infrastructure and logistics division reported an increase in net profit from US$6 million to US$24 million, mainly due to improved performance in its toll road businesses, which saw a 34% increase in toll road revenues.  Astra has 396km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road.

 

THACO

 

THACO contributed a US$52 million profit, 43% up compared to the same period last year, mainly due to a strong automotive performance supported by a temporary reduction in registration fees for locally-assembled vehicles. THACO's automotive unit sales were up 54%, with market share increasing from 22% to 29%, while margins also increased due to an improved sales mix.

 

Direct Motor Interests

 

The Group's Direct Motor Interests contributed a US$28 million profit, 20% up compared to the same period last year. Key points are as follows: 

 

·    Cycle & Carriage Singapore's contribution was 41% lower at US$11 million. Passenger car sales fell 25% to 3,144 units as sales volume was adversely impacted by the tightened COE cycle and stock supply shortages. Its market share, however, increased from 16% to 19%.

·    In Indonesia, Tunas Ridean contributed US$15 million, compared to US$7 million in the same period last year, supported by improved profitability across its automotive and financial services businesses.

·    Cycle & Carriage Bintang in Malaysia contributed a profit of US$3 million, compared to US$0.2 million in the same period last year. Despite challenging trading conditions, its financial performance benefited from improved business volume due to the sales tax reduction and cost savings initiatives.

 

Other Strategic Interests

 

The Group's Other Strategic Interests contributed a US$34 million profit, 13% up compared to the same period last year.  Key points are as follows:

 

·    The contribution from Siam City Cement was US$15 million, 9% higher than the previous year. Its performance was supported by improved cement volumes and prices in most of its markets, despite being adversely impacted by inflationary pressure and high energy costs.

·    REE's contribution of US$9 million, based on its first-quarter results, was 71% higher than the previous year. The better result was mainly due to an improved performance from its hydropower investments, due to favourable hydrography.

·    The Group's investment in Vinamilk produced a dividend income of US$9 million, compared to US$11 million last year. Vinamilk reported a 20% decrease in net profit, mainly due to higher raw material and transportation costs.

 

Corporate Costs

 

Corporate costs totalled US$57 million, compared to US$37 million in the same period last year. The increase was mainly due to higher foreign exchange losses from the translation of foreign currency loans, and higher net financing charges.

 

Dividend

 

The Board has declared an interim one-tier tax-exempt dividend of US¢28 per share (2021: US¢18 per share) for the half-year ended 30th June 2022, reflecting its decision to pay out a higher share of the full-year dividend as interim.

 

People

 

Mr Anthony Nightingale, a non-executive director of JC&C and former Chairman of the Board (2002-2012), will be retiring from the Board on 31st July 2022. On behalf of the Board, I would like to record our deep appreciation to Anthony for his valuable contribution and past leadership during his long tenure on the Board.

 

Outlook 

 

The Group expects results in the second half of the year to remain strong, although it remains cautious as a result of global economic challenges, ongoing geopolitical developments and the continuing impact of the pandemic.

 

Ben Keswick

Chairman

 

 

CORPORATE PROFILE

 

Jardine Cycle & Carriage is the investment holding company of the Jardine Matheson Group in Southeast Asia. JC&C seeks to grow with Southeast Asia by investing in market-leading businesses based on the themes of urbanisation and the emerging consumer class. The Group works closely with its businesses to enable them to achieve their potential and to elevate their communities.

 

The Group has a 50.1% interest in Astra, a diversified group in Indonesia and the largest independent automotive group in Southeast Asia.

 

JC&C also has significant interests in Vietnam, including 26.6% in THACO Corporation, 33.2% in Refrigeration Electrical Engineering Corporation and 10.6% in Vinamilk. Siam City Cement, in which it has a 25.5% interest, also has a presence in South Vietnam and operates in Thailand, Sri Lanka, Cambodia and Bangladesh.

 

The Direct Motor Interests in JC&C's portfolio are the Cycle & Carriage businesses in Singapore, Malaysia and Myanmar, and 46.2%-owned Tunas Ridean in Indonesia.

 

JC&C is a leading Singapore-listed company, 75%-owned by the Jardine Matheson group. Together with its subsidiaries and associates, JC&C employs around 240,000 people across Southeast Asia.

 

Statement pursuant to Rule 705(5) of the Listing Rules of the Singapore Exchange Securities Trading Limited ("SGX-ST")

 

The directors confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the accompanying unaudited interim financial results for the six months ended 30th June 2022 to be false or misleading in any material aspect.

 

 

On behalf of the Board of Directors

 

 

Ben Keswick

Director

 

 

Steven Phan

Director

 

 

28th July 2022

 

 

 

Jardine Cycle & Carriage Limited

Consolidated Profit and Loss Account for the six months ended 30th June 2022

 



2022


2021

Change


Note

US$m


US$m

%



 



 

Revenue (1)

2

  10,680.5


   8,287.0

29

Net operating costs

3

   (9,128.5)


  (7,622.6)

20

Operating profit

3

    1,552.0


       664.4

134



 



 

Financing income


          57.6


         63.1

-9

Financing charges (2)


        (82.2)


       (90.5)

-9

Net financing charges


        (24.6)


       (27.4)

-10

Share of associates' and joint


 



 

   ventures' results after tax


        320.7


       263.6

22

Profit before tax


    1,848.1


       900.6

105

Tax

4

      (359.9)


     (209.1)

72

Profit after tax


    1,488.2


       691.5

115



 



 

Profit attributable to:


 



 

Shareholders of the Company


        487.5


       226.3

115

Non-controlling interests


    1,000.7


       465.2

115



    1,488.2


       691.5

115



 



 



 US¢


 US¢

 

Earnings per share


 

 


 

- basic

6

           123

 

            57

115

- diluted

6

           123

 

            57

115

 

(1)    Higher revenue was mainly due to higher sales in Astra's automotive and heavy equipment and mining operations.

(2)    Decrease in financing charges was mainly due to lower level of net debt.

 

 

Jardine Cycle & Carriage Limited

Consolidated Statement of Comprehensive Income for the six months ended 30th June 2022

 


2022


2021


US$m


US$m


 



Profit for the year

    1,488.2


       691.5


 



Items that will not be reclassified to profit and loss:

 




 



Asset revaluation

 



- surplus during the year

             -  


           0.1


 



Remeasurements of defined benefit pension plans

           0.7


          (4.5)


 



Tax relating to items that will not be reclassified

          (0.2)


           0.7


 



Share of other comprehensive income/(expense) of

 



   associates and joint ventures, net of tax

           1.4


          (2.0)


 




           1.9


          (5.7)


 



Items that may be reclassified subsequently to profit and loss:

 




 



Translation difference

 



- gain/(loss) arising during the year

      (581.7)


      (339.9)

- transfer to profit and loss

             -  


             -  


      (581.7)


      (339.9)

Financial assets at FVOCI (1)

 



- gain/(loss) arising during the year

        (12.0)


        (10.4)

- transfer to profit and loss

          (1.9)


          (1.7)


        (13.9)


        (12.1)

Cash flow hedges

 



- gain/(loss) arising during the year

         25.7


         81.8

- transfer to profit and loss

             -  


             -  


         25.7


         81.8


 



Tax relating to items that may be reclassified

          (5.5)


        (16.7)


 



Share of other comprehensive income of

 



   associates and joint ventures, net of tax

         74.1


         35.2


      (501.3)


      (251.7)


 



Other comprehensive income/(expense) for the year

      (499.4)


      (257.4)

 

 

 


Total comprehensive income for the year

       988.8


       434.1


 



Attributable to:

 

 


Shareholders of the Company

       233.4


         92.3

Non-controlling interests

       755.4


       341.8


       988.8


434.1

 

 

(1)   Fair value through other comprehensive income ("FVOCI")

 

Jardine Cycle & Carriage Limited

Consolidated Balance Sheet at 30th June 2022

 





At

 

At



Note


30.06.2022

 

31.12.2021

 

 

 

 

US$m

 

US$m

Non-current assets

 



 

 


Intangible assets




      1,732.4

 

      1,775.9

Right-of-use assets




         708.0

 

         769.4

Property, plant and equipment




      3,747.2

 

      3,852.1

Investment properties




         508.5

 

         529.1

Bearer plants




         484.0

 

         498.6

Interests in associates and joint ventures




      4,292.0

 

      4,385.5

Non-current investments




      2,434.3

 

      2,255.3

Non-current debtors




      2,803.3

 

      2,782.7

Deferred tax assets




         398.0

 

         391.6





    17,107.7

 

    17,240.2

Current assets

 



 

 


Current investments




           14.9

 

           45.6

Properties for sale




         354.2

 

         374.7

Stocks




      1,739.4

 

      1,531.9

Current debtors




      5,552.2

 

      5,147.1

Current tax assets




           80.2

 

         125.4

Bank balances and other liquid funds




 

 


- non-financial services companies




      4,070.0

 

      4,210.7

- financial services companies




         644.9

 

         378.1





      4,714.9

 

      4,588.8





    12,455.8

 

    11,813.5





 

 


Total assets

 



    29,563.5

 

    29,053.7





 

 


Non-current liabilities

 



 

 


Non-current creditors




         154.6

 

         201.5

Non-current provisions




         184.9

 

         183.8

Non-current lease liabilities




           56.0

 

           64.4

Long-term borrowings


8


 

 


- non-financial services companies




      2,246.3

 

      2,597.1

- financial services companies




      1,432.9

 

      1,273.2





      3,679.2

 

      3,870.3

Deferred tax liabilities




         342.4

 

         358.9

Pension liabilities




         395.6

 

         396.6





      4,812.7

 

      5,075.5





 

 






 

 






 

 


Current liabilities

 



 

 


Current creditors




      5,121.8

 

      4,488.4

Current provisions




         108.6

 

         113.0

Current lease liabilities




           51.0

 

           52.6

Current borrowings


8


 

 


- non-financial services companies




         939.5

 

         843.3

- financial services companies




      1,623.7

 

      1,846.6





      2,563.2

 

      2,689.9

Current tax liabilities




         192.0

 

         239.0





      8,036.6

 

      7,582.9

 

 



 

 


Total liabilities

 



    12,849.3

 

    12,658.4

 

 



 

 


Net assets

 



    16,714.2

 

    16,395.3

 

 



 

 


Equity

 



 

 


Share capital


9


      1,381.0

 

      1,381.0

Revenue reserve


10


      7,612.4

 

      7,374.3

Other reserves


11


     (1,642.9)

 

     (1,387.1)

Shareholders' funds




      7,350.5

 

      7,368.2

Non-controlling interests


12


      9,363.7

 

      9,027.1

Total equity

 



    16,714.2

 

    16,395.3

 

 

Jardine Cycle & Carriage Limited

Consolidated Statement of Changes in Equity for the six months ended 30th June 2022

Attributable to shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable

 

 

 

 

 

 

 

 

Asset

 

 

 

Fair value

 

 

 

to non-

 

 

 

 

Share

 

Revenue

 

revaluation

 

Translation

 

and other

 

 

 

controlling

 

Total

 

 

capital

 

reserve

 

reserve

 

reserve

 

reserves

 

Total

 

interests

 

equity

 

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1st January


1,381.0

 

7,374.3

 

404.7

 

(1,774.6)

 

(17.2)

 

7,368.2

 

9,027.1

 

16,395.3

Total comprehensive income


-

 

488.9

 

-

 

(280.9)

 

25.4

 

233.4

 

755.4

 

988.8

Dividends paid by the Company


             -  

 

          (247.2)

 


                -  

 


               -  

 

               -  

 

        (247.2)

 


                -  

 

        (247.2)

Dividends declared/paid to non-controlling


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   interests


-

 

-

 

-

 

-

 

-

 

-

 

(418.7)

 

(418.7)

Issue of shares to non-controlling interests


             -  

 

                 -  

 


                -  

 


               -  

 

               -  

 

               -  

 


3.2

 


3.2

Change in shareholding


             -  

 


(3.6)

 

               

-  

 

              

-  

 

               -  

 


(3.6)

 


(3.1)

 


(6.7)

Other


             -  

 

                 -  

 


(0.3)

 

              

-  

 

               -  

 


(0.3)

 


(0.2)

 


(0.5)

Balance at 30th June


1,381.0

 

7,612.4

 

404.4

 

(2,055.5)

 

 8.2

 

7,350.5

 

9,363.7

 

16,714.2



 

 

 



 


 

 



 


 




 

 

 



 


 

 



 


 


2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1st January


 1,381.0

 

6,937.7

 

403.4

 

(1,683.7)

 

(64.3)

 

6,974.1

 

8,332.5

 

15,306.6

Total comprehensive income


         -  

 

223.7

 

0.1

 

(164.8)

 

33.3

 

92.3

 

341.8

 

434.1

Dividends paid by the Company


          -  

 

(134.2)

 

                -  

 

               -  

 

           -  

 

(134.2)

 

                -  

 

(134.2)

Dividends declared/paid to non-controlling


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   interests


             -  

 

                 -  

 

              

  -  

 

            

   -  

 

               -  

 

               -  

 

         (198.1)

 

        (198.1)

Issue of shares to non-controlling interests


             -  

 

                 -  

 

            

    -  

 

          

     -  

 

               -  

 

               -  

 

            

   0.3

 

             0.3

Change in shareholding


             -  

 

            (14.3)

 

            

    -  

 

          

     -  

 

               -  

 

          (14.3)

 

           (21.5)

 

          (35.8)

Other


             -  

 

                 -  

 

            

    -  

 

         

      -  

 

               -  

 

               -  

 

             (1.0)

 

            (1.0)

Balance at 30th June


     1,381.0


        7,012.9


           403.5


     (1,848.5)


          (31.0)


      6,917.9



8,454.0


    15,371.9

 

     

 

Jardine Cycle & Carriage Limited

Company Balance Sheet at 30th June 2022

 


 



At


At


 

Note


30.06.2022


31.12.2021

 

 

 


US$m


US$m

 

 



 



Non-current assets

 



 



Property, plant and equipment

 



              31.7


              33.1

Interests in subsidiaries

 



        1,379.4


        1,416.5

Interests in associates and joint ventures

 



           947.6


           976.0

Non-current investment

 



           222.1


           264.5


 



        2,580.8


        2,690.1


 



 



Current assets

 



 



Current debtors

 



        1,093.6


        1,129.8

Bank balances and other liquid funds

 



              50.7


              24.2


 



        1,144.3


        1,154.0

 

 



 



Total assets

 



        3,725.1


        3,844.1

 

 



 



Non-current liabilities

 



 



Non-current borrowings

 



        1,527.3


        1,535.9

Deferred tax liabilities

 


 

                6.0

 

                6.2

 

 



        1,533.3


        1,542.1

 

 



 



Current liabilities

 



 



Current creditors

 



           105.4


           109.2

Current borrowings

 



                  -  


              10.0

Current tax liabilities

 



                1.5


                1.5


 



           106.9


           120.7

 

 



 



Total liabilities

 



        1,640.2


        1,662.8

 

 



 



Net assets

 



        2,084.9


        2,181.3

 

 



 



Equity




 



Share capital

 

9


        1,381.0


        1,381.0

Revenue reserve

 

10


           440.6


           474.1

Other reserves

 

11


           263.3


           326.2

Total equity

 



        2,084.9


        2,181.3

 

 



 



 

 



 



Net asset value per share

 



US$5.28


US$5.52

 

 

Jardine Cycle & Carriage Limited

Company Statement of Comprehensive Income for the six months ended 30th June 2022

 


2022


2021

 

US$m


US$m


 



Profit for the year

     213.6


     143.1


 



Items that may be reclassified subsequently to

 



   profit and loss:

 



Translation difference

 



- loss arising during the year

     (62.9)


     (37.9)


 



Other comprehensive expense for the year

     (62.9)


     (37.9)


 



Total comprehensive income for the year

     150.7


     105.2

 

 

Jardine Cycle & Carriage Limited

Company Statement of Changes in Equity for the six months ended 30th June 2022

 



Share

 

Revenue

 

Translation

 

Total


Note

capital

 

reserve

 

reserve

 

equity

 

 

US$m

 

US$m

 

US$m

 

US$m



 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

Balance at 1st January


   1,381.0

 

       474.1

 

         326.2

 

    2,181.3



 

 

 

 

 

 

 

Total comprehensive income/(expense)


            -  

 

       213.6

 

          (62.9)

 

       150.7



 

 

 

 

 

 

 

Dividends paid

5

            -  

 

      (247.1)

 

               -  

 

      (247.1)



 

 

 

 

 

 

 

Balance at 30th June


 1,381.0

 

       440.6

 

         263.3

 

    2,084.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

Balance at 1st January


1,381.0


       471.7


         375.9


    2,228.6










Total comprehensive income/(expense)


            -  


       143.1


          (37.9)


       105.2










Dividends paid

5

            -  


      (134.2)


               -  


      (134.2)










Balance at 30th June


   1,381.0


       480.6


         338.0


    2,199.6

 

 

Jardine Cycle & Carriage Limited

Consolidated Statement of Cash Flows for the six months ended 30th June 2022

 

 


2022

2021


Note

US$m

US$m

Cash flows from operating activities


 


Cash generated from operations

15

    1,805.0

    1,513.5



 


Interest paid


        (58.1)

        (75.5)

Interest received


         56.5

         63.1

Other finance costs paid


          (4.3)

        (14.8)

Income tax paid


      (401.3)

      (168.9)

 


      (407.2)

      (196.1)

Dividends received from associates and joint

 

       335.8

       226.7

   ventures (net)

 

 



 

 



 

        (71.4)

         30.6


 

 


Net cash flows from operating activities

 

    1,733.6

    1,544.1

 

 

 


Cash flows from investing activities


 


Sale of property, plant and equipment


         22.9

         18.2

Sale of investments


       139.9

       131.9

Purchase of intangible assets


        (60.2)

        (55.9)

Additions to right-of-use assets


          (2.9)

          (7.0)

Purchase of property, plant and equipment


      (281.8)

      (122.7)

Purchase of investment properties


          (0.2)

          (0.9)

Additions to bearer plants


        (18.2)

        (15.5)

Purchase of associates and joint ventures


        (70.3)

        (26.3)

Purchase of investments


      (289.3)

      (217.0)

 


 


Net cash flows from investing activities


      (560.1)

      (295.2)

 


 


Cash flows from financing activities


 


Drawdown of loans (1)


    1,519.5

    3,271.1

Repayment of loans (1)


   (1,725.2)

   (3,419.0)

Principal elements of lease payments


        (35.7)

        (45.4)

Changes in controlling interests in subsidiaries


          (6.7)

        (35.8)

Investments by non-controlling interests


           3.2

           0.3

Dividends paid to non-controlling interests


      (412.8)

      (191.0)

Dividends paid by the Company


      (247.2)

      (134.2)

 


 


Net cash flows from financing activities


      (904.9)

      (554.0)



 




 


Net change in cash and cash equivalents


       268.6

       694.9

Cash and cash equivalents at the beginning of the year


    4,588.8

    3,497.6

Effect of exchange rate changes


      (142.5)

        (79.2)



 


Cash and cash equivalents at the end of the year (2)


    4,714.9

    4,113.3

 

(1)  The drawdown and repayment of loans in 2021 includes the refinancing effect of the Company's borrowings from current liabilities to non-current liabilities.

 

(2)  For the purpose of the Consolidated Statement of Cash Flows, cash and cash equivalents comprise deposits with bank and financial institutions, bank and cash balances, net of bank overdrafts. In the balance sheet, bank overdrafts are included under current borrowings.

 

Jardine Cycle & Carriage Limited

Notes to the financial statements for the six months ended 30th June 2022

 

1      Basis of preparation

 

The condensed interim financial statements for the six months ended 30th June 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance of the Group since the last annual financial statements for the year ended 31st December 2021. There have been no changes to the accounting policies described in the 2021 audited accounts which have been prepared in accordance with Singapore Financial Reporting Standards (International) ("SFRS(I)") and International Financial Reporting Standards ("IFRS"), except for the adoption of new and amended standards as set out below. The Group has not early adopted any other standard or amendments that have been issued but not yet effective. 

 

The exchange rates used for translating assets and liabilities at the balance sheet date are US$1=S$1.3922 (2021: US$1=S$1.3517), US$1=RM4.4035 (2021: US$1=RM4.1735), US$1=IDR14,848 (2021: US$1=IDR14,269), US$1=VND23,254 (2021: US$1=VND22,790) and US$1=THB35.27 (2021: US$1= THB33.318).

 

The exchange rates used for translating the results for the period are US$1=S$1.3687 (2021: US$1=S$1.3328), US$1=RM4.2868 (2021: US$1=RM4.1096), US$1=IDR14,495 (2021: US$1=IDR14,360), US$1=VND22,958 (2021: US$1=VND23,042) and US$1=THB33.856 (2021: US$1=THB31.016).

 

Interpretations and amendments to published standard effective in 2022

 

There are no changes to the accounting policies as described in the 2021 annual financial statements and the Group has not early adopted any standard or amendments that have been issued but not yet effective. A number of amendments were effective from 1st January 2022. The more important amendments applicable to the Group is as follows:

 

Amendments to IAS 37 - Onerous Contracts - Cost of Fulfilling a Contract (effective from 1st January 2022)

The amendments clarify that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts.  The Group applied the amendment from 1st January 2022 and there is no  significant impact on the Group's consolidated financial statements.

 

Critical accounting estimates and judgements

 

The preparation of the condensed interim financial statements require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

 

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31st December 2021.

 

2      Revenue

 

 

 

 

 Direct 

 

 

 

 

 

 Motor 

 

 

 

 Astra

 

 Interests

 

 Total

 

 US$m

 

 US$m

 

 US$m

Group

 

 

 

 

 

2022

 

 

 

 

 

Property

         32.1

 

             -  

 

         32.1

Motor vehicles

    3,774.4

 

       763.6

 

    4,538.0

Financial services

       884.2

 

             -  

 

       884.2

Heavy equipment, mining, construction & energy

    4,165.6

 

             -  

 

    4,165.6

Other

    1,060.6

 

             -  

 

    1,060.6

 

    9,916.9

 

       763.6

 

  10,680.5

 






From contracts with customers:






Recognised at a point in time

    8,809.9

 

       713.3

 

    9,523.2

Recognised over time

         98.3

 

         48.3

 

       146.6


    8,908.2

 

       761.6

 

    9,669.8


 

 

 

 

 

From other sources:

 

 

 

 

 

Rental income from investment properties

           0.7

 

             -  

 

           0.7

Revenue from financial services companies

       884.2

 

             -  

 

       884.2

Other

       123.8

 

           2.0

 

       125.8


    1,008.7

 

           2.0

 

    1,010.7


 

 

 

 

 


    9,916.9

 

       763.6

 

  10,680.5













2021






Property

         24.2


             -  


         24.2

Motor vehicles

    2,988.7


       803.3


    3,792.0

Financial services

       839.1


             -  


       839.1

Heavy equipment, mining, construction & energy

    2,592.6


             -  


    2,592.6

Other

    1,039.1


             -  


    1,039.1


    7,483.7


       803.3


    8,287.0







From contracts with customers:






Recognised at a point in time

    6,433.4


       769.9


    7,203.3

Recognised over time

       108.4


         32.3


       140.7


    6,541.8


       802.2


    7,344.0







From other sources:






Rental income from investment properties

           6.0


             -  


           6.0

Revenue from financial services companies

       839.1


             -  


       839.1

Other

         96.8


           1.1


         97.9


       941.9


           1.1


       943.0








    7,483.7


       803.3


    8,287.0

 

 

3      Net operating costs and operating profit

 


Group

 



2022



2021

Change



US$m



US$m

%

Cost of sales


  (8,270.0)



  (6,582.0)

26

Other operating income


       204.7



       118.4

73

Selling and distribution expenses


      (438.2)



      (408.7)

7

Administrative expenses


      (574.3)



      (540.6)

6

Other operating expenses


        (50.7)



      (209.7)

-76

Net operating costs


  (9,128.5)



  (7,622.6)

20

 

 






Operating profit is determined after including:

 

 




 

Amortisation/depreciation of:


 




 

- intangible assets


        (67.1)



        (66.1)

2

- right-of-use assets


        (63.5)



        (74.1)

-14

- property, plant and equipment


      (341.9)



      (367.0)

-7

- bearer plants


        (14.3)



        (13.7)

4

(Impairment)/write-back of:


 




 

- property, plant and equipment


            0.1



          (0.4)

nm

- debtors


        (89.0)



        (95.4)

-7

Fair value gain/(loss) on:


 




 

- investments (1)


          96.7



      (123.2)

nm

- agricultural produce


          (0.1)



            3.5

nm

- livestock


              -  



            3.4

> -100

- derivative not qualifying as hedge


            0.1



              -  

nm

Profit/(loss) on disposal of:


 





- intangible assets


          (0.3)



              -  

nm

- property, plant and equipment


         11.3



         11.1

2

- investments


           1.6



           1.7

-6

Loss on disposal/write-down of receivables from






 

   collateral vehicles


        (22.8)



        (35.1)

-35

Write-down of stocks, net


          (1.7)



          (0.5)

>100

Net exchange loss (2)


        (31.2)



        (26.9)

16

Dividend and interest income from investments


          14.8



          41.0

-64

 

 nm - not meaningful

 

(1) Fair value gain/(loss) relates mainly to equity investments in GoTo, Vinamilk and Toyota Motor Corporation

(2) Net loss relates mainly to the impact of revaluing monetary liabilities denominated in US dollars

 

 

4      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.

 

5      Dividends

 

An interim dividend in respect of 2022 of US¢28 (2021: US¢18) per share amounting to a total of US$110.7 million (2021: US$71.5 million) is declared by the Board. These financial statements do not reflect this dividend payable, which will be accounted for in shareholders' equity as an appropriation of retained earnings in the six months ending 31st December 2022.

 


Group and Company

 


2022


2021


US$m


US$m


 



Final one-tier tax exempt dividend in respect of previous year of

 



US¢62 per share (2021: in respect of 2020 of US¢34)

       247.1


       134.2

 

6      Earnings per share

 


Group

 

 

2022

 

2021

 

US$m

 

US$m

Basic earnings per share

 

 


Profit attributable to shareholders

       487.5

 

       226.3

Weighted average number of ordinary shares in issue (millions)

       395.2

 

       395.2


 

 


Basic earnings per share

US¢123


US¢57


 



Diluted earnings per share

US¢123

 

US¢57


 

 


Underlying earnings per share

 

 


Underlying profit attributable to shareholders

       522.4

 

       346.5

Weighted average number of ordinary shares in issue (millions)

       395.2

 

       395.2


 

 


Basic underlying earnings per share

US¢132

 

US¢88


 

 


Diluted underlying earnings per share

US¢132

 

US¢88

 

As at 30th June 2022 and 2021, there were no dilutive potential ordinary shares in issue.

 

A reconciliation of the profit attributable to shareholders and underlying profit attributable to shareholders is as follows:

 


Group

 

 

2022


2021

 

US$m


US$m

 

 



Profit attributable to shareholders

       487.5


       226.3

 

 



Less:

 



Non-trading items (net of tax and non-controlling interests)

 



Fair value changes of agricultural produce and live stock

             -  


           2.2

Fair value changes of investments

       (34.9)


     (122.4)


       (34.9)


     (120.2)


 



Underlying profit attributable to shareholders

       522.4


       346.5

 

Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance. Items classified as non-trading items include fair value gains or losses on revaluation of investment properties, agricultural produce and equity investments which are measured at fair value through profit and loss; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets and other investments; provisions for closure of businesses; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into the Group's underlying business performance.

 

7      Financial Instruments

 

Financial instruments by category

 

The fair values of financial assets and financial liabilities, together with carrying amounts at 30th June 2022 and 31st December 2021 are as follows:

 




Fair














value











 



through


Fair value


Financial







 

Fair value of

profit


 through other


 assets at


Other


Total



 

hedging


and


 comprehensive

 amortised

financial


carrying


Fair

 

  instruments

loss


income


costs


liabilities


amount


value


US$m


US$m


US$m


US$m


US$m


US$m


US$m

At 30.06.2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets














   measured at fair value














Other investments














- equity investments

                -  

 

   1,686.9

 

                        -  

 

              -  

 

             -  

 

    1,686.9

 

    1,686.9

- debt investments

                -  

 

            -  

 

                  762.3

 

              -  

 

             -  

 

       762.3

 

       762.3

Derivative financial

 


 


 


 


 


 


 

   instruments

            72.5


            -  


                        -  


              -  


             -  


         72.5


         72.5


            72.5

 

   1,686.9

 

                  762.3

 

              -  

 

             -  

 

    2,521.7

 

    2,521.7

Financial assets not 














   measured at fair value














Debtors

                -  

 

            -  

 

                        -  

 

     7,341.5

 

             -  

 

    7,341.5

 

    7,188.6

Bank balances

                -  

 

            -  

 

                        -  

 

     4,714.9

 

             -  

 

    4,714.9

 

    4,714.9


                -  

 

            -  

 

                        -  

 

   12,056.4

 

             -  

 

  12,056.4

 

  11,903.5

Financial liabilities














   measured at fair value














Derivative financial

 


 


 


 


 


 


 

   instruments

           (16.8)


            -  


                        -  


              -  


             -  


        (16.8)


        (16.8)

Contingent consideration














   payable

                -  


         (8.8)


                        -  


              -  


             -  


          (8.8)


          (8.8)


           (16.8)

 

         (8.8)

 

                        -  

 

              -  

 

             -  

 

        (25.6)

 

        (25.6)

Financial liabilities not 














   measured at fair value














Borrowings excluding














   lease liabilities

                -  


            -  


                        -  


              -  


   (6,242.4)


   (6,242.4)


   (6,259.9)

Lease liabilities

                -  

 

            -  

 

                        -  

 

              -  

 

      (107.0)

 

      (107.0)

 

      (107.0)

Creditors excluding














   non-financial liabilities

                -  


            -  


                        -  


              -  


   (3,734.3)


   (3,734.3)


   (3,734.3)


                -  

 

            -  

 

                        -  

 

              -  

 

 (10,083.7)

 

 (10,083.7)

 

 (10,101.2)

 














At 31.12.2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets














   measured at fair value














Other investments














- equity investments

                -  


   1,524.5


                        -  


              -  


             -  


    1,524.5


    1,524.5

- debt investments

                -  


            -  


                  776.4


              -  


             -  


       776.4


       776.4

Derivative financial














   instruments

            15.7


          0.6


                        -  


              -  


             -  


         16.3


         16.3


            15.7


   1,525.1


                  776.4


              -  


             -  


    2,317.2


    2,317.2

Financial assets not 














   measured at fair value














Debtors

                -  


            -  


                        -  


     7,091.7


             -  


    7,091.7


    7,153.3

Bank balances

                -  


            -  


                        -  


     4,588.8


             -  


    4,588.8


    4,588.8


                -  


            -  


                        -  


   11,680.5


             -  


  11,680.5


  11,742.1

Financial liabilities














   measured at fair value














Derivative financial














   instruments

           (54.9)


         (0.1)


                        -  


              -  


             -  


        (55.0)


        (55.0)

Contingent consideration














   payable

                -  


         (8.8)


                        -  


              -  


             -  


          (8.8)


          (8.8)


           (54.9)


         (8.9)


                        -  


              -  


             -  


        (63.8)


        (63.8)

Financial liabilities not 














   measured at fair value














Borrowings excluding














   lease liabilities

                -  


            -  


                        -  


              -  


   (6,560.2)


   (6,560.2)


   (6,589.3)

Lease liabilities

                -  


            -  


                        -  


              -  


      (117.0)


      (117.0)


      (117.0)

Creditors excluding














   non-financial liabilities

                -  


            -  


                        -  


              -  


   (3,075.3)


   (3,075.3)


   (3,075.3)


                -  


            -  


                        -  


              -  


   (9,752.5)


   (9,752.5)


   (9,781.6)

 

Fair value estimation

 

a)    Financial instruments that are measured at fair value

For financial instruments that are measured at fair value in the balance sheet, the corresponding fair value measurements are disclosed by level of the following fair value measurement hierarchy:

 

Quoted prices (unadjusted) in active markets for identical assets or liabilities ("quoted prices in active markets")

The fair values of listed securities and bonds are based on quoted prices in active markets at the balance sheet date. The quoted market price used for listed investments held by the Group is the current bid price.

 

Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly ("observable current market transactions")

The fair values of derivative financial instruments are determined using rates quoted by the Group's bankers at the balance sheet date. The rates for interest rate swaps and caps, cross-currency swaps and forward foreign exchange contracts are calculated by reference to the market interest rates and foreign exchange rates.

 

Inputs for the asset or liability that are not based on observable market data ("unobservable inputs")

The fair values of other unlisted equity investments are determined using valuation techniques by reference to observable current market transactions or the market prices of the underlying investments with certain degree of entity-specific estimates or discounted cash flows by projecting the cash inflows from these investments.

 

There were no changes in valuation techniques during the year.

 

The table below analyses the Group's financial instruments carried at fair value, by the levels in the fair value measurement hierarchy.

 

 

 

Quoted


Observable





 

 prices in


 current





 

active


market


Unobservable



 

 markets


transactions


inputs


Total


US$m


US$m


US$m


US$m

At 30.06.2022








Assets








Other investments








- equity investments

 1,522.7

 

                 -  

 

             164.2

 

 1,686.9

- debt investments

     762.3

 

                 -  

 

                    -  

 

    762.3

 

 2,285.0

 

                 -  

 

             164.2

 

 2,449.2

Derivative financial instruments at fair value

 

 

 

 

 

 

 

- through other comprehensive income

            -  

 

             72.5

 

                    -  

 

      72.5


 2,285.0

 

             72.5

 

             164.2

 

 2,521.7

Liabilities

 

 

 

 

 

 

 

Contingent consideration payable

            -  

 

                 -  

 

                (8.8)

 

       (8.8)

Derivative financial instruments at fair value

 

 

 

 

 

 

 

- through other comprehensive income

            -  

 

           (16.8)

 

                    -  

 

     (16.8)


            -  

 

           (16.8)

 

                (8.8)

 

     (25.6)

 

 

 

Quoted


Observable





 

 prices in


 current





 

active


market


Unobservable



 

 markets


transactions


inputs


Total


US$m


US$m


US$m


US$m

At 31.12.2021








Assets








Other investments








- equity investments

  1,136.7


                -  


             387.8


  1,524.5

- debt investments

     776.4


                -  


                   -  


     776.4

 

  1,913.1


                -  


             387.8


  2,300.9

Derivative financial instruments at fair value








- through other comprehensive income

           -  


             15.7


                   -  


       15.7

- through profit and loss

           -  


               0.6


                   -  


         0.6


  1,913.1


             16.3


             387.8


  2,317.2

Liabilities








Contingent consideration payable

           -  


                -  


                (8.8)


       (8.8)

Derivative financial instruments at fair value








- through other comprehensive income

           -  


           (54.9)


                   -  


     (54.9)

- through profit and loss

           -  


             (0.1)


                   -  


       (0.1)


           -  


           (55.0)


                   -  


     (55.0)


           -  


           (55.0)


                (8.8)


     (63.8)

 

During the six months ended 30th June 2022, the GoTo investment was transferred from Unobservable inputs category to Quoted prices in active markets category. There were no transfers among the three categories during the year ended 31st December 2021.

 

b)    Financial instruments that are not measured at fair value

 

The fair values of current debtors, bank balances and other liquid funds, current creditors, current borrowings and current lease liabilities of the Group and the Company are assumed to approximate their carrying amounts due to the short-term maturities of these assets and liabilities.

 

The fair values of long-term borrowings disclosed are based on market prices or are estimated using the expected future payments discounted at market interest rates. The fair values of non-current lease liabilities are estimated using the expected future payments discounted at market interest rates.

 

 

8      Borrowings

 


Group

 

 

At

 

At

 

30.06.2022

 

31.12.2021


US$m

 

US$m

Long-term borrowings:

 

 


- secured

          11.1

 

          12.8

- unsecured

     3,668.1

 

     3,857.5


     3,679.2

 

     3,870.3

Current borrowings:

 

 


- secured

          70.7

 

        164.6

- unsecured

     2,492.5

 

     2,525.3


     2,563.2

 

     2,689.9


 

 


Total borrowings

     6,242.4

 

     6,560.2

 

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$53.5 million (31st December 2021: US$92.6 million).

 

 

9      Share capital

 


Group

 

 

2022

 

2021


US$m

 

US$m

Six months ended 30th June

 

 


Issued and fully paid:

 

 


Balance at 1st January and 30th June

 

 


- 395,236,288 (2021: 395,236,288) ordinary shares

    1,381.0

 

    1,381.0

 

There were no rights, bonus or equity issues during the period.

 

The Company did not hold any treasury shares as at 30th June 2022 (30th June 2021: Nil) and did not have any unissued shares under convertibles as at 30th June 2022 (30th June 2021: Nil).

 

There were no subsidiary holdings (as defined in the Listing Rules of the SGX-ST) as at 30th June 2022 (30th June 2021: Nil).

 

 

10   Revenue reserve

 

Group

Company

 


2022


2021


2022


2021


US$m


US$m


US$m


US$m

Movements:

 




 



Balance at 1st January

      7,374.3


   6,937.7


      474.1


      471.7

Defined benefit pension plans

 







- remeasurements

             0.3


         (1.6)


            -  


            -  

- deferred tax

            (0.1)


          0.2


            -  


            -  

Share of associates' and joint ventures'

 




 



   remeasurements of defined benefit








   pension plans, net of tax

             1.2


         (1.2)


            -  


            -  

Profit/(loss) attributable to shareholders

         487.5


      226.3


      213.6


      143.1

Dividends paid by the Company

        (247.2)


     (134.2)


     (247.1)


     (134.2)

Change in shareholding

            (3.6)


       (14.3)


            -  


            -  

Balance at 30th June

      7,612.4


   7,012.9


      440.6


      480.6

 

 

11   Other reserves

 

Group

Company

 


2022


2021


2022


2021


US$m


US$m


US$m


US$m

Composition:

 




 



Asset revaluation reserve

       404.4


       403.5


             -  


             -  

Translation reserve

   (2,055.5)


   (1,848.5)


       263.3


       338.0

Fair value reserve

           9.8


         12.8


             -  


             -  

Hedging reserve

          (4.9)


        (47.1)


             -  


             -  

Other reserve

           3.3


           3.3


             -  


             -  

Balance at 30th June

   (1,642.9)


   (1,476.0)


       263.3


       338.0






 



Movements:





 



Asset revaluation reserve

 




 



Balance at 1st January

       404.7


       403.4


             -  


             -  

Surplus on revaluation of assets

             -  


           0.1


             -  


             -  

Other

          (0.3)


             -  


             -  


             -  

Balance at 30th June

       404.4


       403.5


             -  


             -  

 





 



Translation reserve

 




 



Balance at 1st January

   (1,774.6)


   (1,683.7)


       326.2


       375.9

Translation difference

      (280.9)


      (164.8)


        (62.9)


        (37.9)

Translation reserve realised

             -  


             -  


             -  


             -  

Balance at 30th June

   (2,055.5)


   (1,848.5)


       263.3


       338.0






 



Fair value reserve

 



 

 



Balance at 1st January

         16.5


         18.5

 

             -  


             -  

Financial assets at FVOCI

 



 

 



- fair value changes

          (5.8)


          (5.0)

 

             -  


             -  

- deferred tax

             -  


           0.1

 

             -  


             -  

- transfer to profit and loss

          (0.9)


          (0.8)

 

             -  


             -  

Balance at 30th June

           9.8


         12.8

 

             -  


             -  


 



 

 



Hedging reserve

 



 

 



Balance at 1st January

        (37.0)


        (86.1)

 

             -  


             -  

Cash flow hedges

 



 

 



- fair value changes

         11.1


         34.4

 

             -  


             -  

- deferred tax

          (2.4)


          (7.1)

 

             -  


             -  

   Share of associates' and joint ventures' fair value changes of cash flow hedges, net of tax

 

 

23.4


 

 

11.7

 

 

 

-  


 

 

 -  

Balance at 30th June

          (4.9)


        (47.1)

 

             -  


             -  


 



 

 



Other reserve

 



 

 



Balance at 1st January and 30th June

           3.3


           3.3

 

             -  


             -  

 

 

12    Non-controlling interests

                                                                                                                                                                                Group

 


2022


2021


US$m


US$m


 



Balance at 1st January

    9,027.1


    8,332.5

Financial assets at FVOCI

 



- fair value changes

          (6.2)


          (5.4)

- deferred tax

           0.1


           0.1

- transfer to profit and loss

          (1.0)


          (0.9)


          (7.1)


          (6.2)

Cash flow hedges

 



- fair value changes

         14.6


         47.4

- deferred tax

          (3.2)


          (9.8)

- transfer to profit and loss

             -  


             -  


         11.4


         37.6

Share of associates' and joint ventures' fair value changes of

 



   cash flow hedges, net of tax

         50.7


         23.5

Defined benefit pension plans

 



- remeasurements

           0.4


          (2.9)

- deferred tax

          (0.1)


           0.5


           0.3


          (2.4)

Share of associates' and joint ventures' remeasurements of

 



   defined benefit pension plans, net of tax

           0.2


          (0.8)

Translation difference

      (300.8)


      (175.1)

Profit for the year

    1,000.7


       465.2

Issue of shares to non-controlling interests

           3.2


           0.3

Dividends paid

      (418.7)


      (198.1)

Change in shareholding

          (3.1)


        (21.5)

Other

          (0.2)


          (1.0)

Balance at 30th June

    9,363.7


    8,454.0

 

 

13    Related party transactions

       

The following significant related party transactions took place during the six months ended 30th June:

 

 



2022


2021



US$m


US$m

 

 

 



(a)

With associates and joint ventures:

 




Purchase of goods and services

   (2,765.6)


   (2,179.9)


Sale of goods and services

    1,030.2


       541.2


Commission and incentives earned

           3.2


           2.3


Interest received

           8.7


           8.9



 



(b)

With related companies and

 



 

  associates of ultimate holding

 



 

  company:

 




Management fees paid

          (2.7)


          (1.5)


Purchase of goods and services

          (1.7)


          (1.6)


Sale of goods and services

           0.9


           0.4



 



(c)

Remuneration of directors of the

 



 

  Company and key management

 



 

  personnel of the Group:

 




Salaries and other short-term

 




   employee benefits

           5.9


           4.6

 

 

14    Commitments

 

Capital expenditure authorised for at the balance sheet date, but not recognised in the financial statements is as follows:

 

Group

 

 


At


At


30.06.2022


31.12.2021


US$m


US$m


 



Authorised and contracted

         137.5

 

         106.3

Authorised but not contracted

         254.9

 

         282.0


         392.4

 

         388.3

 

 

15     Cash flows from operating activities

 

Group

 

 


2022


2021


US$m


US$m


 



Profit before tax

     1,848.1


        900.6


 



Adjustments for:

 



Financing income

         (57.6)


         (63.1)

Financing charges

          82.2


          90.5

Share of associates' and joint ventures' results after tax

       (320.7)


       (263.6)

Amortisation/depreciation of:

 



- intangible assets

          67.1


          66.1

- right-of-use assets

          63.5


          74.1

- property, plant and equipment

        341.9


        367.0

- bearer plants

          14.3


          13.7

Impairment/(write-back of impairment) of:

 



- property, plant and equipment

           (0.1)


             0.4

- debtors

          89.0


          95.4

Fair value (gain)/loss on:

 



- investment

         (96.7)


        123.2

- agricultural produce

             0.1


           (3.5)

- livestock

               -  


           (3.4)

- derivative not qualifying as hedge

           (0.1)


               -  

(Profit)/loss on disposal of:

 



- intangible assets

             0.3


               -  

- property, plant and equipment

         (11.3)


         (11.1)

- investments

           (1.6)


           (1.7)

Loss on disposal/write-down of receivables from collateral vehicles

          22.8


          35.1

Amortisation of borrowing costs for financial services companies

             4.4


             4.4

Write-down of stocks

             1.7


             0.5

Changes in provisions

          10.0


          10.8

Foreign exchange loss

          53.8


          26.6


        263.0


        561.4


 



Operating profit before working capital changes

     2,111.1


     1,462.0


 



Changes in working capital:

 



Properties for sale

             6.1


             4.1

Stocks (1)

       (332.2)


          21.7

Concession rights

           (5.6)


           (3.7)

Financing debtors

       (209.7)


       (307.5)

Debtors (2)

       (600.3)


       (263.7)

Creditors (3)

        820.5


        590.2

Pensions

          15.1


          10.4


       (306.1)


          51.5


 



Cash flows from operating activities

     1,805.0


     1,513.5

 

(1)   Increase in stock balance mainly due to higher purchases amid higher sales

(2)   Increase in debtors balance mainly due to higher sales activities

(3)   Increase in creditors balance mainly due to higher trade purchases

 

 

16     Notes to consolidated statement of cash flows

 

(a)  Purchase of shares in associates and joint ventures

 

Purchase of shares in associates and joint ventures for the six months ended 30th June 2022 mainly included US$45.1 million for Astra's investment in PT Jasamarga Pandaan Malang, a toll road operator in Indonesia and US$23.6 million for additional purchase of shares in Refrigeration Electrical Engineering Corporation.

 

Purchase of shares in associates and joint ventures for the six months ended 30th June 2021 mainly included US$19.0 million for Astra's investment in PT Marga Lingkar, a toll road operator in Indonesia and US$7.2 million for additional purchase of shares in Refrigeration Electrical Engineering Corporation.

 

(b)  Changes in controlling interests in subsidiaries

 

Change in controlling interests of subsidiaries for the six months ended 2022 included an outflow of US$2.5 million for Astra's acquisition of additional interest in PT Marga Mandalasakti, US$0.5 million and US$3.7 million for acquisition of additional interests in Cycle and Carriage Bintang Berhad and Republic Auto Pte Ltd, respectively.

 

Change in controlling interests of subsidiaries for the six months ended 2021 included an outflow of US$17.0 million and US$18.8 million for acquisition of additional interests in Cycle and Carriage Bintang Berhad and Republic Auto Pte Ltd, respectively.

 

 

17     Segment Information

 

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the Board for the purpose of resource allocation and performance assessment. The Board considers Astra as one operating segment because it represents a single direct investment made by the Company. Decisions for resource allocation and performance assessment of Astra are made by the Board of the Company while resource allocation and performance assessment of the various Astra businesses are made by the board of Astra, taking into consideration the opinions of the Board of the Company. THACO is identified as another operating segment.  Direct Motor Interests are aggregated into one reportable segment based on the similar automotive nature of their products and services, while Other Strategic Interests, comprising the Group's strategic investment portfolio, are aggregated into another reportable segment based on their exposure to market-leading companies in key regional economies. Set out below is an analysis of the segment information.          

 

Underlying business performance

 






Direct


Other




Non-








Motor


Strategic


Corporate


trading




Astra


THACO


Interests


Interests


costs


items


Group


US$m


US$m


US$m


US$m


US$m


US$m


US$m















6 months ended 30th June 2022














Revenue

        9,916.9

 

                 -  

 

      763.6

 

             -  

 

             -  

 

             -  

 

  10,680.5

Net operating costs

      (8,445.7)

 

                 -  

 

     (743.5)

 

           9.3

 

       (45.2)

 

         96.6

 

  (9,128.5)

Operating profit

        1,471.2

 

                 -  

 

         20.1

 

           9.3

 

       (45.2)

 

         96.6

 

    1,552.0

Financing income

              57.3

 

                 -  

 

           0.2

 

             -  

 

           0.1

 

             -  

 

          57.6

Financing charges

            (70.2)

 

                 -  

 

         (1.1)

 

             -  

 

       (10.9)

 

             -  

 

        (82.2)

Net financing charges

            (12.9)

 

                 -  

 

         (0.9)

 

             -  

 

       (10.8)

 

             -  

 

        (24.6)

Share of associates' and joint

 

 

 

 

 

 

 

 

 

 

 

 

 

   ventures' results after tax

           227.6

 

            52.3

 

         14.9

 

         25.9

 

             -  

 

             -  

 

       320.7

Profit before tax

        1,685.9

 

            52.3

 

         34.1

 

         35.2

 

       (56.0)

 

         96.6

 

    1,848.1

Tax

          (352.3)

 

                 -  

 

         (4.9)

 

         (1.5)

 

         (0.8)

 

         (0.4)

 

      (359.9)

Profit after tax

        1,333.6

 

            52.3

 

         29.2

 

         33.7

 

       (56.8)

 

         96.2

 

    1,488.2

Non-controlling interests

          (868.9)

 

                 -  

 

         (0.7)

 

             -  

 

             -  

 

     (131.1)

 

  (1,000.7)

Profit attributable to

 

 

 

 

 

 

 

 

 

 

 

 

 

   shareholders

           464.7

 

            52.3

 

         28.5

 

         33.7

 

       (56.8)

 

       (34.9)

 

       487.5


 

 

 

 

 

 

 

 

 

 

 

 

 

As at 30.06.2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash/(debt) (excluding

 

 

 

 

 

 

 

 

 

 

 

 

 

   net debt of financial    

 

 

 

 

 

 

 

 

 

 

 

 

 

   services companies)

        2,335.4

 

                 -  

 

         10.7

 

             -  

 

 (1,461.9)

 

 

 

       884.2

Total equity

      15,637.7

 

          685.7

 

      288.1

 

      738.4

 

     (635.7)

 

 

 

  16,714.2















 














6 months ended 30th June 2021














Revenue

        7,483.7


                 -  


      803.3


             -  


             -  


             -  


    8,287.0

Net operating costs

      (6,714.7)


                 -  


     (773.8)


         10.5


       (28.2)


     (116.4)


  (7,622.6)

Operating profit

           769.0


                 -  


         29.5


         10.5


       (28.2)


     (116.4)


       664.4

Financing income

              62.9


                 -  


           0.2


             -  


             -  


             -  


          63.1

Financing charges

            (81.5)


                 -  


         (1.0)


             -  


         (8.0)


             -  


        (90.5)

Net financing charges

            (18.6)


                 -  


         (0.8)


             -  


         (8.0)


             -  


        (27.4)

Share of associates' and joint














   ventures' results after tax

           201.4


            36.6


           5.0


         20.6


             -  


             -  


       263.6

Profit before tax

           951.8


            36.6


         33.7


         31.1


       (36.2)


     (116.4)


       900.6

Tax

          (199.5)


                 -  


         (6.1)


         (1.4)


         (0.7)


         (1.4)


      (209.1)

Profit after tax

           752.3


            36.6


         27.6


         29.7


       (36.9)


     (117.8)


       691.5

Non-controlling interests

          (458.9)


                 -  


         (3.9)


             -  


             -  


         (2.4)


      (465.2)

Profit attributable to














   shareholders

           293.4


            36.6


         23.7


         29.7


       (36.9)


     (120.2)


       226.3















As at 31.12.2021














Net cash/(debt) (excluding














   net debt of financial    














   services companies)

        2,233.1


                 -  


         34.5


             -  


 (1,497.3)




       770.3

Total equity

      15,160.6


          672.3


      281.0


      770.0


     (488.6)




  16,395.3

 

 

Segment assets and liabilities are not disclosed as these are not regularly provided to the Board of the Company.

 

Set out below are analyses of the Group's revenue and non-current assets, by geographical areas:

 










Indonesia


Other


Total










US$m


US$m


US$m

Non-current assets as at














30.06.2022









    9,892.2


    1,579.9


   11,472.1

31.12.2021









  10,204.7


    1,605.9


   11,810.6

 

Non-current assets excluded financial instruments and deferred tax assets. Indonesia is disclosed separately as a geographical area as most of the customers are based in Indonesia.

 

 

18     Interested person transactions

 



 

Aggregate value  

 

Aggregate value



 

of all interested

 

 of all interested



 

person

 

person



 

transactions

 

transactions



 

(excluding

 

conducted under



 

transactions less

 

shareholders' 



 

than S$100,000

 

mandate



 

and transactions

 

pursuant to Rule



 

conducted under

 

920 (excluding



 

shareholders'

 

 transactions less



 

mandate

 

 than S$100,000)

 


 

 pursuant to

 

 



 

Rule 920)

 

 

Name of interested person and

Nature of relationship


US$m

 

                    US$m

    nature of transaction

 


 

 

 

Six months ended 30th June 2022






 






Jardine Matheson Limited

Associate of the Company's




                   

   - Management support services

   controlling shareholder


 -   


                         2.6







Jardine Matheson Limited

Associate of the Company's




                   

   - Business support services

   controlling shareholder


 -   


                         0.1







The Dairy Farm Company Ltd

Associate of the Company's





   - Data analytics services

   controlling shareholder


                         -