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Jardine Strategic (JDS)

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Friday 26 February, 2021

Jardine Strategic

Jardine Cycle & Carriage - Final Results

RNS Number : 4999Q
Jardine Strategic Hldgs Ltd
26 February 2021
 

 

To:  Business Editor  26th February 2021
  For immediate release


Jardine Cycle & Carriage Limited
2020 Financial Statements and Dividend Announcement

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


For further information, please contact:

Jardine Matheson Limited
Joey Ho       (65) 9765 0717

Brunswick Group Limited
Ben Fry      (65) 9017 9886



26th February 2021
JARDINE CYCLE & CARRIAGE LIMITED
2020 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

●Underlying profit 50% lower at US$429 million

●Significantly weaker performances from Astra's automotive, financial services and heavy equipment and mining operations

●Direct Motor Interests performance affected by lower profitability in Cycle & Carriage Singapore and Tunas Ridean

●Other Strategic Interests performance relatively stable

●Proposed final dividend of US¢34 per share, total dividend of US¢43 per share for the year, 51% lower than 2019

 

"Jardine Cycle & Carriage's full-year performance reflected the impact of the COVID-19 pandemic, particularly in the second quarter when movement restrictions were in place in the markets where we operate. Some of the Group's businesses began to see improvements in performance over the second half of the year, but full-year results for most of them were lower compared to the previous year.

The Group continues to operate in challenging conditions and uncertainty remains about the duration of the pandemic. We expect these conditions to continue for some time and it is too early to predict what the impact of the pandemic will be on the Group's performance in 2021. "

Ben Keswick, Chairman


Group Results

 

Year ended 31st December

 


2020
US$m


2019
US$m


Change
%


2020
S$m

Revenue

13,234

18,591

-29

18,225

Underlying profit attributable to

 

 

 

 

shareholders #

429

863

-50

591

Non-trading items^

111

18

nm

153

Profit attributable to shareholders

540

881

-39

744

Shareholders' funds

6,974

6,860

2

9,217

 

US¢

US¢

 

Underlying earnings per share #

109

218

-50

150

Earnings per share

137

223

-39

188

Dividend per share

43

87

-51

57

 

US$

US$

 

S$

Net asset value per share

17.65

17.36

 

23.33

 

The exchange rate of US$1 =S$1.32 (31st December 2019: US$1=S$1.35) was used for translating assets and liabilities at the balance sheet date, and US$1=S$1.38 (2019: US$1=S$1.36) was used for translating the results for the period. The financial results for the year ended 31st December 2020 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 5 to the condensed financial statements.  Management considers this to be a key performance measurement which enhances the understanding of the Group's underlying business performances.

^  Included in 'non-trading items' are unrealised gain/losses arising from the revaluation of the Group's equity investments .

 

 

CHAIRMAN'S STATEMENT

Overview


The full year performance of Jardine Cycle & Carriage ("JC&C" or "the Group") reflected the continuing challenging conditions it faced as a result of the pandemic.

Astra contributed US$309 million to the Group's underlying profit in the year, 57% lower than the previous year, reflecting weaker performance s from its automotive, financial services and heavy equipment and mining operations.

The underlyin g profit from Direct Motor Interests was 78% lower at US$14 million, mainly due to lower contributions from Cycle & Carriage Singapore and Tunas Ridean.

Other Strategic Interests contributed an underlying profit of US$120 million, down 5% from the previous year. Truong Hai Auto Corporation's ("Thaco") automotive business was adversely affected by lockdown restrictions in the second quarter, but performance has since improved.

Corporate costs were US$14 million, down from US$42 million in the previous year, primarily due to lower net financing charges and higher foreign exchange gains from the translation of foreign currency loans.


The Group's underlying profit attributable to shareholders was 50% lower than the previous year at US$429 million. After accounting for non-trading items, profit attributable to shareholders was US$540 million, 39% lower than the previous year. The non-trading items recorded in the year included a US$188 million gain on the disposal of Astra's investment in Permata Bank and unrealised fair value gains related to non-current investments. These gains in non-trading items were partly offset by an impairment loss of US$182 million in respect of the Group's investment in Siam City Cement due to challenging market conditions over several years.

The Group's financial position remains strong, with shareholders' funds of US$6,974 million and a net asset value per share of US$17.65 at the year-end.
Consolidated net debt, excluding Astra's financial services subsidiaries, was US$0.9 billion at the end of December 2020, compared to US$3.0 billion at the end of 2019, mainly due to the receipt of proceeds from the disposal of Astra's investment in Permata Bank.

Net debt within Astra's financial services subsidiaries decreased from US$3.3 billion to US$2.8 billion. JC&C parent company's net debt was US$1.5 billion, similar to the previous year-end.


Strategic Developments

In May 2020, Astra completed the sale of its 44.6% interest in Permata Bank for sale proceeds of US$1.1 billion.

In September 2020, Acset Indonusa, a subsidiary of United Tractors, raised US$102 million from a rights issue to reduce debt and to strengthen its capital structure. Following the rights issue, United Tractors' ownership in Acset Indonusa increased from 50.1% to 64.8%.

In November 2020, Astra acquired a 100% stake for US$45 million in Jakarta Marga Jaya, which owns 35% of Marga Lingkar Jakarta, the operator of the 7.7km Kebon Jeruk-Ulujami toll road as part of the Jakarta Outer Ring Road I.

In November 2020, Astra acquired a further 50% of Astra Aviva Life (now Asuransi Jiwa Astra) from Aviva International Holdings Limited for US$95 million, which brought its ownership to 100%.


Dividends

The Board is recommending a final one-tier tax-exempt dividend of US¢34 per share (2019: US¢69 per share) which, together with the interim dividend, will produce a total dividend for the year of US¢43 per share (2019: US¢87 per share).

People

On behalf of the Board, I would like to express our gratitude to our 240,000 employees across the region for their continuing hard work and dedication in this challenging business environment.

Mr Mark Greenberg has stepped down from the Board after more than 14 years.  He has also served as a member of the Audit Committee. On behalf of the Board, I would like to record our appreciation for his valuable contribution to the Group.

I am delighted to welcome Ms Tan Yen Yen, who joined the Board in January 2021 as an independent director. She has extensive experience in the area of technology, and we look forward to the contribution she will bring to the Group.

Outlook

The Group continues to operate in challenging conditions and uncertainty remains about the duration of the pandemic. We expect these conditions to continue for some time and it is too early to predict what the impact of the pandemic will be on the Group's performance in 2021.

Ben Keswick
Chairman


GROUP MANAGING DIRECTOR'S REVIEW

Group Review


The Group's structure comprises three business pillars: (i) Astra; (ii) Direct Motor Interests ("DMI"), which consists of the Group's non-Astra automotive businesses; and (iii) Other Strategic Interests. 
The contribution to JC&C's underlying profit attributable to shareholders by business segment was as follows:  
 

 

 

Contribution to JC&C's underlying profit

 

 

 

Year ended 31st December

 

 

 

Business segments

 


2020
US$m


2019
US$m


Change
%

 

 

Astra

 

309

716

-57

 

Direct Motor Interests

 

14

63

-78

 

Other Strategic Interests

 

120

126

-5

 

Corporate Costs

 

(14)

(42)

-66

 

Underlying profit attributable to shareholders

 


429


863


-50

 

 

Astra

Astra contributed US$309 million to JC&C's underlying profit, 57% down from the previous year.  Excluding the gain on disposal of its investment in Permata Bank, Astra r eported a net profit equivalent to US$702 million under Indonesian accounting standards, 53% lower in its local currency terms than the same period last year. There were weaker performances from its automotive, financial services, and heavy equipment and mining divisions .

Automotive

Net income fell by 68 % to US$185 million, reflecting a significant drop in sales volume. After suffering a net loss in the second quarter, the automotive division saw a return to profitability in the second half of the year, following a partial easing of the pandemic containment measures. Key points were as follows:
 

●The wholesale car market declined by 48% to 532,000 units in 2020.  Astra's car sales were 50% lower at 270,000 units, reflecting a slight decline in market share. 16 new models and 18 revamped models were launched in the year.

●The wholesale market for motorcycles declined by 44% to 3.7 million units in 2020. Astra's Honda motorcycle sales fell by 41% to 2.9 million units but it saw an increase in market share.  Five new models and 11 revamped models were launched in the year.

●Components business, Astra Otoparts, reported a net income of less than US$1 million, compared to US$52 million in 2019, mainly due to lower revenues from the original equipment manufacturer, replacement market and export segments.

 

Financial Services

Net income from financial services fell by 44% to US$226 million, primarily due to increased loan loss provision s to cover higher non-performing loan losses in the consumer and heavy equipment-focused finance businesses .  Key points were as follows:
 

●Consumer finance businesses saw a 23% decrease in the amounts financed to US$4.6 billion. The net income contribution from the car-focused finance companies decreased by 46% to US$55 million, while the contribution from the motorcycle-focused financing business fell by 42% to US$105 million, in both cases due to higher loan loss provisioning, as non-performing loans increased.

●Heavy equipment-focused finance operations saw a 17% decrease in the amounts financed to US$246 million, with the net income contribution from this business down 59% to US$3 million.

●General insurance company, Asuransi Astra Buana, reported a 16% decrease in net income to US$62 million, caused by lower underwriting income.

 

Heavy Equipment, Mining, Construction & Energy

Net income decreased by 49% to US$234 million, mainly due to lower heavy equipment sales and mining contracting volume, caused by weaker coal prices for most of the year. Key points were as follows:
 

●United Tractors reported a 47% decrease in net income to US$410 million.

●Komatsu heavy equipment sales fell by 47% to 1,564 units, and parts and service revenues were also lower.

●Mining contracting operations reported 17% lower overburden removal volume at 825 million bank cubic metres and 13% lower coal production at 115 million tonnes.

●Coal mining subsidiaries achieved 9% higher coal sales at 9.3 million tonnes, including 1.9 million tonnes of coking coal sales, but profits were affected by lower coal prices.

●Agincourt Resources saw 22% lower gold sales at 320,000 oz.

●General contractor, Acset Indonusa, reported a net loss of US$90 million, mainly due to the slowdown of several ongoing projects and reduced project opportunities.

 

Infrastructure & Logistics

Net income from Astra's infrastru c ture and logistics division decreased from US$21 million to US$3 million, due to lower toll road revenues and lower operating margins in Serasi Autoraya. Key points were as follows:
 

●Traffic volumes were 12% lower. Astra has interests in almost 358km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road.

●Serasi Autoraya's net income decreased by 55% to US$8 million, mainly due to lower operating margins in its car rental business and lower used car sales, despite a 2% increase in vehicles under contract at 23,000 units.

 

Agribusiness

Net income from Agribusiness increased significantly to US$45 million, mainly as a result of a 28% increase in average crude palm oil prices, which offset a 14% decline in crude palm oil and derivative sales.

Direct Motor Interests

Direct Motor Interests faced challenging trading conditions during the year and made a reduced contribution of US$14 million to the Group's underlying profit, 78% lower than the prior year. Key points were as follows: 
 

●C ycle & Carriage Singapore contributed US$19 million, 68% down from the previous year, due to lower sales and weaker margins. Passenger car sales fell by 44% to 7,572 units and market share was reduced from 19% to 17%.

●In Indonesia, Tunas Ridean's contribution of US$1 million was 94% lower. Its automotive business saw reduced sales, while its consumer finance operations were adversely impacted by lower lending volumes and increased loan provisioning.

Cycle & Carriage Bintang in Malaysia contributed a loss of US$1 million, compared to a loss of US$6 million in 2019. Despite challenging trading conditions, the financial performance of the business benefited from improved sales in the second half of the year due to a sales tax reduction, as well as cost savings initiatives.

 

Other Strategic Interests

Other Strategic Interests contributed US$120 million to the Group's underlying profit, 5% down on the previous year. Key points were as follows:
 

Thaco contributed US$39 million, which included an adjustment of US$7 million in respect of its 2019 results. Excluding the adjustment, the profit contribution would have been US$46 million, 9% up from the previous year. Thaco's automotive business contributed US$39 million, this was impacted by lower margins attributable mainly to difficult market conditions in the first half of the year as a result of the pandemic, but was partly offset by higher unit sales for the full year. Thaco's real estate business contributed US$7 million, compared to US$2 million in the previous year as sales resumed on the back of a market recovery, while its new venture in the agriculture sector contributed a loss of US$8 million.

●Siam City Cement's contribution of US$24 million was 3% higher than the previous year. Margins benefited from improved operational efficiencies, which helped to offset the decline in sales.

The contribution of US$21 million from REE was 13% higher than the previous year, due to a stronger contribution from real estate and the effect of an increase in the Group's shareholding to 29.8%, partly offset by weaker performances from its hydropower investments and its M&E business.

●The Group's investment in Vinamilk delivered dividend income of US$37 million, compared to US$36 million in the previous year. Vinamilk's 2020 profit was 5% higher in local currency ter ms as its export business continued to grow, while its domestic dairy segment remained relatively stable.  

 

Corporate Costs

Corporate costs were US$14 million, compared to US$42 million in the previous year, which improved the overall underlying profit of the Group. This was primarily due to lower net financing charges and higher foreign exchange gains from the translation of foreign currency loans. 

Summary

The operating environment remains uncertain and trading conditions are expected to remain challenging for some time. The Group remains confident, however, in the long-term economic prospects for Southeast Asia and it will remain focused on delivering its strategic objectives.


Ben Birks
Group Managing Director



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, which is also the largest independent automotive group in Southeast Asia.

JC&C also has significant interests in Vietnam, including 26.6% in Truong Hai Auto Corporation, 29.8% in Refrigeration Electrical Engineering Corporation and 10.6% in Vinamilk. Its 25.5%-owned Siam City Cement also has a presence in South Vietnam, in addition to operating in Thailand, Sri Lanka, Cambodia and Bangladesh.

The other investments in JC&C's portfolio are the Cycle & Carriage businesses in Singapore, Malaysia and Myanmar, and 46.2%-owned Tunas Ridean in Indonesia. These motor businesses are managed by Jardine International Motors.

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.


 

Jardine Cycle & Carriage Limited

Consolidated Profit and Loss Account for the year ended 31st December 2020

 

 

 

 

2020

 

2019

Change

 

Note

 

US$m

 

US$m

%

 

 

 

 

 

 

 

Revenue 1

3

 

13,234.2

 

18,591.1

-29

Net operating costs

2

 

(11,717.0)

 

(16,394.7)

-29

 

 

 

 

 

 

 

Operating profit

 

 

1,517.2

 

2,196.4

-31

 

 

 

 

 

 

 

Financing income

 

 

121.6

 

93.0

31

Financing charges 2

 

 

(258.6)

 

(362.7)

-29

Net financing charges

 

 

(137.0)

 

(269.7)

-49

Share of associates' and joint

 

 

 

 

 

 

ventures' results after tax

 

 

100.2

 

622.3

-84

 

 

 

 

 

 

 

Profit before tax

 

 

1,480.4

 

2,549.0

-42

Tax

 

 

(234.8)

 

(573.5)

-59

 

 

 

 

 

 

 

Profit after tax

3

 

1,245.6

 

1,975.5

-37

 

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

 

Shareholders of the Company

 

 

540.3

 

881.4

-39

Non-controlling interests

 

 

705.3

 

1,094.1

-36

 

 

 

 

 

 

 

 

 

 

1,245.6

 

1,975.5

-37

 

 

 

 

 

 

 

 

 

 

US¢

 

US¢

 

Earnings per share

5

 

137

 

223

-39

 

(1)  Lower revenue was mainly due to lower sales in Astra's automotive and heavy equipment, mining, construction and energy businesses, as well as Direct Motor Interests;

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


 

Jardine Cycle & Carriage Limited

Consolidated Statement of Comprehensive Income for the year ended 31st December 2020

 

 

2020

 

2019

 

US$m

 

US$m

 

 

 

 

Profit for the year

1,245.6

 

1,975.5

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 


Asset revaluation

 

 

 

- surplus during the year

1.1

 

0.2

 

 

 

 

Remeasurements of defined benefit pension plans

(15.5)

 

(29.7)

 

 

 

 

Tax on items that will not be reclassified

1.3

 

6.9

 

 

 

 

Share of other comprehensive income/(expense) of

 

 

 

associates and joint ventures, net of tax

(11.2)

 

(14.1)

 

(24.3)

 

(36.7)

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

Translation difference

 

 

 

- gain/(loss) arising during the year

(160.7)

 

501.1

 

 

 

 

Financial assets at FVOCI1

 

 

 

- gain arising during the year

19.1

 

20.2

- transfer to profit and loss

1.9

 

(1.0)

 

 

 

 

Cash flow hedges

 

 

 

- loss arising during the year

(45.9)

 

(130.1)

- transfer to profit and loss

2.8

 

1.6

 

 

 

 

Tax relating to items that may be reclassified

4.8

 

31.3

 

 

 

 

Share of other comprehensive income/(expense) of

 

 

 

associates and joint ventures, net of tax

(56.8)

 

(43.6)

 

(234.8)

 

379.5

 

 

 

 

Other comprehensive income/(expense) for the year

(259.1)

 

342.8

 

 

 

 

Total comprehensive income for the year

986.5

 

2,318.3

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Shareholders of the Company

427.3

 

1,064.2

 

 

 

 

Non-controlling interests

559.2

 

1,254.1

 

 

 

 

 

986.5

 

2,318.3

 

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

 

 

Jardine Cycle & Carriage Limited

Consolidated Balance Sheet at 31st December 2020

 

 

 

At

 

At

 

Note

31.12.2020

 

31.12.2019

 

 

US$m

 

US$m

Non-current assets

 

 

 

 

Intangible assets

 

1,816.9

 

1,802.0

Right-of-use assets

 

832.4

 

872.5

Property, plant and equipment

 

4,243.2

 

4,718.2

Investment properties

 

532.2

 

543.2

Bearer plants

 

496.7

 

502.9

Interests in associates and joint ventures

 

4,032.6

 

5,067.3

Non-current investments

 

2,283.9

 

2,105.9

Non-current debtors

 

2,846.8

 

2,826.7

Deferred tax assets

 

370.8

 

359.2

 

 

17,455.5

 

18,797.9

Current assets

 

 

 

 

Current investments

 

60.4

 

28.8

Properties for sale

 

390.2

 

398.7

Stocks

 

1,320.2

 

1,907.1

Current debtors

 

4,676.9

 

5,891.2

Current tax assets

 

111.4

 

204.9

Bank balances and other liquid funds

 

 

 

 

- non-financial services companies

 

3,095.1

 

1,588.0

- financial services companies

 

402.5

 

255.8

 

 

3,497.6

 

1,843.8

 

 

10,056.7

 

10,274.5

 

 

 

 

 

Total assets

 

27,512.2

 

29,072.4

 

 

 

 

 

Non-current liabilities

 

 

 

 

Non-current creditors

 

278.4

 

324.4

Provisions

 

186.3

 

163.4

Non-current lease liabilities

 

79.7

 

93.7

Long-term borrowings

7

 

 

 

- non-financial services companies

 

1,719.3

 

1,923.7

- financial services companies

 

1,246.0

 

1,696.9

 

 

2,965.3

 

3,620.6

Deferred tax liabilities

 

343.5

 

416.5

Pension liabilities

 

389.4

 

330.9

 

 

4,242.6

 

4,949.5

Current liabilities

 

 

 

 

Current creditors

 

3,534.9

 

4,307.8

Current provisions

 

115.9

 

108.6

Current lease liabilities

 

65.2

 

56.9

Current borrowings

7

 

 

 

- non-financial services companies

 

2,229.3

 

2,712.5

- financial services companies

 

1,930.4

 

1,852.6

 

 

4,159.7

 

4,565.1

Current tax liabilities

 

87.3

 

100.0

 

 

7,963.0

 

9,138.4

 

 

 

 

 

Total liabilities

 

12,205.6

 

14,087.9

 

 

 

 

 

Net assets

 

15,306.6

 

14,984.5

 

 

 

 

 

Equity

 

 

 

 

Share capital

8

1,381.0

 

1,381.0

Revenue reserve

9

6,937.7

 

6,720.0

Other reserves

10

(1,344.6)

 

(1,240.9)

Shareholders' funds

 

6,974.1

 

6,860.1

Non-controlling interests

11

8,332.5

 

8,124.4

Total equity

 

15,306.6

 

14,984.5

 

 

Jardine Cycle & Carriage Limited

Consolidated Statement of Changes in Equity for the year ended 31st December 2020

 

Attributable to shareholders of the Company

 

 

Attributable
to non-
controlling
interests

 

 

 

 

 

 

 

Asset
revaluation
reserve

 

 

 

Fair value
and other
reserves

 

 

 

 

 

 

Share
capital

 

Revenue
reserve

 

 

Translation
reserve

 

 

 

 

 

Total
equity

 

 

 

 

 

 

Total

 

 

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1st January

1,381.0

 

6,720.0

 

403.4

 

(1,611.0)

 

(33.3)

 

6,860.1

 

8,124.4

 

14,984.5

Total comprehensive income

-

 

529.4

 

-

 

(72.7)

 

(29.4)

 

427.3

 

559.2

 

986.5

Dividends paid by the Company

-

 

(311.2)

 

-

 

-

 

-

 

(311.2)

 

-

 

(311.2)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

(390.6)

 

(390.6)

Issue of shares to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

38.9

 

38.9

Change in shareholding

-

 

(0.8)

 

-

 

-

 

-

 

(0.8)

 

0.8

 

-

Others

-

 

0.3

 

-

 

-

 

(1.6)

 

(1.3)

 

(0.2)

 

(1.5)

Balance at 31st December

1,381.0

 

6,937.7

 

403.4

 

(1,683.7)

 

(64.3)

 

6,974.1

 

8,332.5

 

15,306.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1st January

1,381.0

 

6,202.4

 

403.3

 

(1,852.5)

 

9.6

 

6,143.8

 

7,342.1

 

13,485.9

Total comprehensive income

-

 

865.5

 

0.1

 

241.5

 

(42.9)

 

1,064.2

 

1,254.1

 

2,318.3

Dividends paid by the Company

-

 

(347.3)

 

-

 

-

 

-

 

(347.3)

 

-

 

(347.3)

Dividends paid to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

(497.7)

 

(497.7)

Issue of shares to non-controlling interests

-

 

-

 

-

 

-

 

-

 

-

 

28.6

 

28.6

Change in shareholding

-

 

(0.6)

 

-

 

-

 

-

 

(0.6)

 

(2.5)

 

(3.1)

Acquisition of subsidiaries

-

 

-

 

-

 

-

 

-

 

-

 

(0.2)

 

(0.2)

Balance at 31st December

1,381.0

 

6,720.0

 

403.4

 

(1,611.0)

 

(33.3)

 

6,860.1

 

8,124.4

 

14,984.5

 

 

Jardine Cycle & Carriage Limited

Company Balance Sheet at 31st December 2020

 

 

 

 

 

 

At

 

At

 

Note

 

 

 

31.12.2020

 

31.12.2019

 

 

 

 

 

US$m

 

US$m

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

 

34.1

 

34.6

Interests in subsidiaries

 

 

 

 

1,412.2

 

1,380.8

Interests in associates and joint ventures

 

 

 

 

998.2

 

1,169.5

Non-current investment

 

 

 

 

223.0

 

205.1

 

 

 

 

 

2,667.5

 

2,790.0

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Current debtors

 

 

 

 

1,157.0

 

1,181.8

Bank balances and other liquid funds

 

 

 

 

46.5

 

42.7

 

 

 

 

 

  1,203.5

 

  1,224.5

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

3,871.0

 

4,014.5

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

6.3

 

6.2

 

 

 

 

 

6.3

 

6.2

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Current creditors

 

 

 

 

65.2

 

74.7

Current borrowings

 

 

 

 

1,569.1

 

1,529.4

Current tax liabilities

 

 

 

 

1.8

 

1.6

 

 

 

 

 

1,636.1

 

1,605.7

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

 

1,642.4

 

1,611.9

 

 

 

 

 

 

 

 

Net assets

 

 

 

 

2,228.6

 

2,402.6

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

Share capital

8

 

 

 

1,381.0

 

1,381.0

Revenue reserve

9

 

 

 

471.7

 

683.6

Other reserves

10

 

 

 

375.9

 

338.0

Total equity

 

 

 

 

2,228.6

 

2,402.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value per share

 

 

 

 

US$5.64

 

US$6.08

 

 

Jardine Cycle & Carriage Limited

Company Statement of Comprehensive Income for the year ended 31st December 2020

 

 

2020

 

2019

 

US$m

 

US$m

 

 

 

 

Profit for the year

99.3

 

358.3

 

 

 

 

Item s that may be reclassified subsequently to profit or loss:

 

 

 

Translation difference

 

 

 

- gain arising during the year

37.9

 

32.7

 

 

 

 

 

 

 

 

Other comprehensive income for the year

37.9

 

32.7

 

 

 

 

Total comprehensive income for the year

137.2

 

391.0

 

 

Jardine Cycle & Carriage Limited

Company Statement of Changes in Equity for the year ended 31st December 2020

 

 

Share
capital

 

Revenue
reserve

 

Translation
reserve

 

 

Total
equity

 

US$m

 

US$m

 

US$m

 

 

US$m

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

Balance at 1st January

1,381.0

 

683.6

 

338.0

 

 

2,402.6

 

 

 

 

 

 

 

 

 

Total comprehensive income

-

 

99.3

 

37.9

 

 

137.2

 

 

 

 

 

 

 

 

 

Dividends paid

-

 

(311.2)

 

-

 

 

  (311.2)

 

 

 

 

 

 

 

 

 

Balance at 31st December

1,381.0

 

471.7

 

375.9

 

 

2,228.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

Balance at 1st January

1,381.0

 

672.6

 

305.3

 

 

2,358.9

 

 

 

 

 

 

 

 

 

Total comprehensive income

-

 

358.3

 

32.7

 

 

391.0

 

 

 

 

 

 

 

 

 

Dividends paid

-

 

(347.3)

 

-

 

 

  (347.3)

 

 

 

 

 

 

 

 

 

Balance at 31st December

1,381.0

 

683.6

 

338.0

 

 

2,402.6

 

 

Jardine Cycle & Carriage Limited

Consolidated Statement of Cash Flows for the year ended 31st December 2020

 

 

 

 

2020

 

2019

 

Note

 

US$m

 

US$m

Cash flows from operating activities

 

 

 

 

 

Cash generated from operations

12

 

3,002.1

 

2,315.0

 

 

 

 

 

 

Interest paid

 

 

(215.5)

 

(243.4)

Interest received

 

 

112.0

 

86.8

Other finance costs paid

 

 

(68.4)

 

(119.2)

Income tax paid

 

 

(361.7)

 

(780.0)

 

 

 

(533.6)

 

(1,055.8)

Dividends received from associates and joint ventures (net)

 

 

285.9

 

453.1

 

 

 

 

 

 

 

 

 

(247.7)

 

(602.7)

 

 

 

 

 

 

Net cash flows from operating activities

 

 

2,754.4

 

1,712.3

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Sale of intangible assets

 

 

0.6

 

-

Sale of right-of-use assets

 

 

-

 

1.9

Sale of property, plant and equipment

 

 

34.4

 

26.8

Sale of investment properties

 

 

-

 

0.2

Sale of subsidiaries, net of cash disposed

 

 

-

 

0.8

Sale of associate and joint venture

 

 

1,138.3

 

3.2

Sale of investments

 

 

444.8

 

292.3

Purchase of intangible assets

 

 

(96.5)

 

(154.2)

Purchase of right-of-use assets

 

 

(18.1)

 

(41.2)

Purchase of property, plant and equipment

 

 

(309.4)

 

(837.6)

Purchase of investment properties

 

 

(6.3)

 

(18.2)

Additions to bearer plants

 

 

(34.8)

 

(43.8)

Purchase of subsidiaries, net of cash acquired

 

 

(51.8)

 

-

Purchase of associates and joint ventures

 

 

(32.5)

 

(477.7)

Purchase of investments

 

 

(483.4)

 

(401.1)

 

 

 

 

 

 

Net cash flows used in investing activities

 

 

585.3

 

(1,648.6)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Drawdown of loans

 

 

1,903.0

 

3,618.3

Repayment of loans

 

 

(2,865.8)

 

(2,869.6)

Principal elements of lease payments

 

 

(133.8)

 

(91.0)

Changes in controlling interests in subsidiaries

 

 

-

 

(3.1)

Investments by non-controlling interests

 

 

38.9

 

28.6

Dividends paid to non-controlling interests

 

 

(390.6)

 

(497.7)

Dividends paid by the Company

 

 

(311.2)

 

(347.3)

 

 

 

 

 

 

Net cash flows used in financing activities

 

 

(1,759.5)

 

(161.8)

 

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

1,580.2

 

(98.1)

Cash and cash equivalents at the beginning of the year

 

 

1,843.4

 

1,881.5

Effect of exchange rate changes

 

 

74.0

 

60.0

 

 

 

 

 

 

Cash and cash equivalents at the end of the year(1)

 

 

3,497.6

 

1,843.4

 

(1) 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 year ended 31st December 2020

 

1  Basis of preparation

 

The financial statements are consistent with those set out in the 2019 audited accounts which have been prepared in accordance with Singapore Financial Reporting Standards (International) ("SFRS(I)") and International Financial Reporting Standards ("IFRS"). There have been no changes to the accounting policies described in the 2019 audited accounts other than the following changes in relation to rent concessions and government grants.  Other amendments which are effective in 2020 and relevant to the Group's operations, do not have a significant effect on the Group's accounting policies.  The Group has not early adopted any other standard or amendments that have been issued but not yet effective. 

COVID-19 Related Rent Concessions: Amendment to IFRS 16 Leases

The Group has applied the Amendment, which is effective for annual reporting periods beginning on and after 1st June 2020, for the Group's annual reporting period commencing 1st January 2020.  Where the Group is a lessee, the practical expedient is applied to account for the change in lease payments resulting from rent concessions granted as a direct consequence of the COVID-19 pandemic and elects not to assess these concessions as lease modifications when all of the following conditions are met:

 

(i)  the revised lease payments are substantially the same as, or less than, the consideration for the lease immediately preceding the change;

 

(ii)  reduction in lease payments relates to payment due on or before 31st December 2021; and

 

(iii)  there is no substantive change to the other terms and conditions of the lease.

 

Rent concessions fulfilling the above conditions are recognised in the profit and loss over the period in which they cover.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies.  Estimates and judgments used in preparing the financial statements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.  The resulting accounting estimates will, by definition, seldom equal the related actual results.


The exchange rates used for translating assets and liabilities at the balance sheet date are US$1= S$1.3216 (2019: US$1=S$1.3473), US$1= RM4.0245 (2019: US$1= RM4.0925), US$1= IDR14,105 (2019: US$1=IDR13,901), US$1= VND23,086 (2019: US$1= VND23,173) and US$1= THB29.920 (2019: US$1=THB29.863).

The exchange rates used for translating the results for the period are US$1= S$1.3771 (2019: US$1=S$1.3635), US$1= RM4.202 (2019: US$1= RM4.142), US$1= IDR14,647 (2019: US$1=IDR14,131), US$1= VND23,247 (2019: US$1= VND23,234) and US$1= THB31.309 (2019: US$1=THB30.938).

 

2  Net operating costs and operating profit

 

 

Group

 

 

 

 

 

 

 

2020

 

2019

Change

 

US$m

 

US$m

%

Cost of sales

(10,419.0)

 

(14,766.3)

-29

Other operating income

827.2

 

379.0

118

Selling and distribution expenses

(933.8)

 

(838.7)

11

Administrative expenses

(1,065.2)

 

(1,105.9)

-4

Other operating expenses

(126.2)

 

(62.8)

101

Net operating costs

(11,717.0)

 

(16,394.7)

-29

 

Operating profit is determined after including:

 

 

 

 

Amortisation/depreciation of

 

 

 

 

-  intangible assets

(126.7)

 

(136.6)

-7

-  right-of-use assets

(189.7)

 

(127.3)

49

-  property, plant and equipment

(763.0)

 

(795.5)

-4

-  bearer plants

(26.7)

 

(27.1)

-1

Fair value changes of

 

 

 

 

-  investment properties

3.2

 

6.4

-50

-  investments(1)

113.4

 

(9.6)

nm

-  agricultural produce

5.8

 

4.8

21

-  livestock

(3.4)

 

-

nm

-  derivative not qualifying as hedges

(2.4)

 

-

nm

Profit/(loss) on disposal of:

 

 

 

 

-  intangible assets

(1.3)

 

(0.1)

nm

-  right-of-use assets

-

 

2.3

-100

-  property, plant and equipment

22.2

 

6.6

236

-  associates and joint ventures(2)

428.5

 

0.5

nm

-  investments

1.7

 

3.5

-51

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

(80.8)

 

(59.7)

35

Dividend and interest income from investments

88.8

 

97.6

-9

Write-down of stocks, net

(14.3)

 

(33.5)

-57

(Impairment)/reversal of impairment of

 

 

 

 

-  intangible assets 

(33.9)

 

-

nm

-  right-of-use assets

-

 

(9.3)

-100

-  property, plant and equipment

(9.4)

 

(2.1)

348

-  bearer plants

-

 

(7.9)

-100

-  debtors(3)

(361.4)

 

(111.6)

224

Net exchange gain/(loss)(4)

20.2

 

12.9

57

nm - not meaningful

 

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

(2) Profit in 2020 relates mainly to the gain from disposal of Permata Bank

(3) Increase in impairment of debtors relates mainly to higher loss provision attributable to higher non-performing loan losses

(4) Net exchange gain relates mainly to the impact of revaluating monetary liabilities denominated in US dollars

 

 

3  Revenue and Profit after tax

 

Group

 

 

 

 

 

 

 

2020

 

2019

Change

 

US$m

 

US$m

%

Revenue:

 

 

 

 

- 1st half

6,594.6

 

9,157.1

-28

- 2nd half

6,639.6

 

9,434.0

-30

 

13,234.2

 

18,591.1

-29

 

Profit after tax:

 

 

 

 

- 1st half

813.4

 

938.6

-13

- 2nd half

432.2

 

1,036.9

-58

 

1,245.6

 

1,975.5

-37

 

 

4  Dividends

 

Group and Company

 

2020

 

2019

 

US$m

 

US$m

Dividend paid:

 

 

 

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

275.8

 

275.4

US¢69 per share (2019: in respect of 2018 of US¢69)

 

 

 

Interim one-tier tax exempt dividend in respect of current year of

35.4

 

71.9

US¢9 per share (2019: US¢18)

 

 

 

 

311.2

 

347.3

 

The Board is recommending a final dividend of US¢34 per share which, together with the interim dividend of US¢9 per share , will give a total dividend for the year of US¢43 per share.

 

5  Earnings per share

 

Group

 

 

 

 

 

2020

 

2019

 

US$m

 

US$m

Basic earnings per share

 

 

 

Profit attributable to shareholders

540.3

 

881.4

Weighted average number of ordinary shares in issue (millions)

395.2

 

395.2

Basic earnings per share

US¢137

 

US¢223

Diluted earnings per share

US¢137

 

US¢223

 

 

 

 

 

 

 

 

Underlying earnings per share

 

 

 

Underlying profit attributable to shareholders

429.1

 

863.1

Basic underlying earnings per share

US¢109

 

US¢218

Diluted underlying earnings per share

US¢109

 

US¢218

 

 

As at 31st December 2019 and 2020, 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

 

 

 

 

 

2020

 

2019

 

US$m

 

US$m

 

 

 

 

Profit attributable to shareholders

540.3

 

881.4

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

Fair value changes of agricultural produce and live stock

0.7

 

1.4

Fair value changes of an investment properties

0.8

 

3.3

Fair value changes of investments

109.1

 

(6.8)

Impairment loss on associates and joint ventures

(182.8)

 

-

Impairment loss on goodwill on subsidiaries

(8.5)

 

-

Net gain on disposal of interests in associates and joint ventures

188.3

 

0.2

Share of associate's negative goodwill arising from business combination

-

 

20.2

Others

3.6

 

-

 

 

 

 

 

 

18.3

Underlying profit attributable to shareholders

429.1

 

863.1

 

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, associates and joint ventures 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.

 

 

6  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. Set out below is an analysis of the segment information:

 

 

Underlying businesses performance

 

 

 

 

 

 

 

Direct

 

Other

 

 

 

Non-

 

 

 

 

 

Motor

 

Strategic

 

Corporate

 

trading

 

 

 

Astra

 

Interests

 

Interests

 

Costs

 

items

 

Group

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

2020

 

 

 

 

 

 

 

 

 

 

 

Revenue

11,964.8

 

1,269.4

 

-

 

-

 

-

 

13,234.2

Net operating costs

(11,041.8)

 

(1,241.3)

 

36.7

 

8.8

 

520.6

 

(11,717.0)

Operating profit/(loss)

923.0

 

28.1

 

36.7

 

8.8

 

520.6

 

1,517.2

 

 

 

 

 

 

 

 

 

 

 

 

Financing income

121.2

 

0.3

 

-

 

0.1

 

-

 

121.6

Financing charges

(233.6)

 

(3.1)

 

-

 

(21.9)

 

-

 

(258.6)

Net financing charges

(112.4)

 

(2.8)

 

-

 

(21.8)

 

-

 

(137.0)

Share of associates' and joint ventures'

 

 

 

 

 

 

 

 

 

 

 

results after tax

202.8

 

(2.3)

 

86.4

 

-

 

(186.7)

 

100.2

Profit before tax

1,013.4

 

23.0

 

123.1

 

(13.0)

 

333.9

 

1,480.4

Tax

(220.1)

 

(7.1)

 

(3.0)

 

(1.1)

 

(3.5)

 

(234.8)

Profit after tax

793.3

 

15.9

 

120.1

 

(14.1)

 

330.4

 

1,245.6

Non-controlling interests

(483.9)

 

(2.2)

 

-

 

-

 

(219.2)

 

(705.3)

Profit attributable to shareholders

309.4

 

13.7

 

120.1

 

(14.1)

 

111.2

 

540.3

Net cash/(debt) (excluding net debt

 

 

 

 

 

 

 

 

 

 

 

of financial services companies)

626.4

 

39.1

 

-

 

(1,519.0)

 

 

 

(853.5)

Total equity

13,953.3

 

282.7

 

1,366.6

 

(296.0)

 

 

 

15,306.6

 

 

 

Underlying businesses performance

 

 

 

 

 

 

 

Direct

 

Other

 

 

 

Non-

 

 

 

 

 

Motor

 

Strategic

 

Corporate

 

trading

 

 

 

Astra

 

Interests

 

Interests

 

Costs

 

items

 

Group

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

 

US$m

2019

 

 

 

 

 

 

 

 

 

 

 

Revenue

16,802.9

 

1,788.2

 

-

 

-

 

-

 

18,591.1

Net operating costs

(14,711.0)

 

(1,721.2)

 

35.7

 

(0.3)

 

2.1

 

(16,394.7)

Operating profit/(loss)

2,091.9

 

67.0

 

35.7

 

(0.3)

 

2.1

 

2,196.4

 

 

 

 

 

 

 

 

 

 

 

 

Financing income

92.1

 

0.4

 

-

 

0.5

 

-

 

93.0

Financing charges

(317.6)

 

(4.4)

 

-

 

(40.7)

 

-

 

(362.7)

Net financing charges

(225.5)

 

(4.0)

 

-

 

(40.2)

 

-

 

(269.7)

Share of associates' and joint ventures'

 

 

 

 

 

 

 

 

 

 

 

results after tax

493.0

 

15.0

 

92.9

 

-

 

21.4

 

622.3

Profit before tax

2,359.4

 

78.0

 

128.6

 

(40.5)

 

23.5

 

2,549.0

Tax

(555.5)

 

(12.9)

 

(2.6)

 

(1.0)

 

(1.5)

 

(573.5)

Profit after tax

1,803.9

 

65.1

 

126.0

 

(41.5)

 

22.0

 

1,975.5

Non-controlling interests

(1,088.2)

 

(2.2)

 

-

 

-

 

(3.7)

 

(1,094.1)

Profit attributable to shareholders

715.7

 

62.9

 

126.0

 

(41.5)

 

18.3

 

881.4

 

 

 

 

 

 

 

 

 

 

 

 

Net cash/(debt) (excluding net debt of financial services companies)

(1,553.8)

 

(19.9)

 

-

 

(1,474.5)

 

 

 

(3,048.2)

Total equity

13,591.0

 

287.8

 

1,500.4

 

(394.7)

 

 

 

14,984.5

                         

 

 

7  Borrowings

 

 

Group

 

 

 

 

 

2020

 

2019

 

US$m

 

US$m

Long-term borrowings:

 

 

 

- secured

391.6

 

765.1

- unsecured

2,573.7

 

2,855.5

 

2,965.3

 

3,620.6

 

 

 

 

Current borrowings:

 

 

 

- secured

443.1

 

1,138.5

- unsecured

3,716.6

 

3,426.6

 

4,159.7

 

4,565.1

 

 

 

 

Total borrowings

7,125.0

 

8,185.7

 

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$295.6 million (31st December 2019: US$877.1 million).

 

 

8  Share capital

 

 

Group

 

2020

 

2019

 

US$m

 

US$m

Six months ended 31st December

 

 

 

Issued and fully paid:

 

 

 

Balance at 1st July and 31st December

 

 

 

- 395,236,288 (2019: 395,236,288) ordinary shares

1,381.0

 

1,381.0

 

 

 

 

Year ended 31st December

 

 

 

Issued and fully paid:

 

 

 

Balance at 1st January and 31st December

 

 

 

- 395,236,288 (2019: 395,236,288) ordinary shares

1,381.0

 

1,381.0

 

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

The Company did not hold any treasury shares as at 31st December 2020 (31st December 2019: Nil) and did not have any unissued shares under convertibles as at 31st December 2020 (31st December 2019: Nil).


There were no subsidiary holdings (as defined in the Listing Manual of the SGX-ST) as at 31st December 2020 (31st December 2019: Nil).
 

 

9  Revenue reserve

 

 

Group

 

Company

 

 

 

 

 

 

 

 

 

2020

 

2019

 

2020

 

2019

 

US$m

 

US$m

 

US$m

 

US$m

Movements :

 

 

 

 

 

 

 

Balance at 1st January

6,720.0

 

6,202.4

 

683.6

 

672.6

Defined benefit pension plans

 

 

 

 

 

 

 

- remeasurements

(5.6)

 

(12.7)

 

-

 

-

- deferred tax

0.5

 

2.5

 

-

 

-

Share of associates' and joint ventures' remeasurements

 

 

 

 

 

 

 

of defined benefit pension plans, net of tax

(5.8)

 

(5.7)

 

-

 

-

Profit attributable to shareholders

540.3

 

881.4

 

99.3

 

358.3

Dividends paid by the Company

(311.2)

 

(347.3)

 

(311.2)

 

(347.3)

Change in shareholding

(0.8)

 

(0.6)

 

-

 

-

Other

0.3

 

-

 

-

 

-

Balance at 31st December

6,937.7

 

6,720.0

 

471.7

 

683.6

 

 

10  Other reserves

 

 

Group

 

Company

 

 

 

 

 

 

 

 

 

2020

 

2019

 

2020

 

2019

 

US$m

 

US$m

 

US$m

 

US$m

Composition :

 

 

 

 

 

 

 

Asset revaluation reserve

403.4

 

403.4

 

-

 

-

Translation reserve

(1,683.7)

 

(1,611.0)

 

375.9

 

338.0

Fair value reserve

18.5

 

12.2

 

-

 

-

Hedging reserve

(86.1)

 

(48.8)

 

-

 

-

Other reserve

3.3

 

3.3

 

-

 

-

Balance at 31st December

(1,344.6)

 

(1,240.9)

 

375.9

 

338.0

 

 

 

 

 

 

 

 

Movements :

 

 

 

 

 

 

 

Asset revaluation reserve

 

 

 

 

 

 

 

Balance at 1st January

403.4

 

403.3

 

-

 

-

Revaluation surplus

-

 

0.1

 

-

 

-

Balance at 31st December

403.4

 

403.4

 

-

 

-

 

 

 

 

 

 

 

 

Translation reserve

 

 

 

 

 

 

 

Balance at 1st January

(1,611.0)

 

(1,852.5)

 

338.0

 

305.3

Translation difference

(72.7)

 

241.5

 

 37.9

 

 32.7

Balance at 31st December

(1,683.7)

 

(1,611.0)

 

375.9

 

338.0

 

Fair value reserve

 

 

 

 

 

 

 

Balance at 1st January

12.2

 

0.5

 

-

 

-

Financial assets at FVOCI

 

 

 

 

 

 

 

- fair value changes

9.2

 

9.7

 

-

 

-

- deferred tax

(0.1)

 

(0.1)

 

-

 

-

- transfer to profit and loss

1.1

 

(0.5)

 

-

 

-

Share of associates' and joint ventures' fair

 

 

 

 

 

 

 

value changes of financial assets at FVOCI,

 

 

 

 

 

 

 

net of tax 

(2.3)

 

2.6

 

-

 

-

Others

(1.6)

 

-

 

-

 

-

Balance at 31st December

18.5

 

12.2

 

-

 

-

 

 

 

 

 

 

 

 

Hedging reserve

 

 

 

 

 

 

 

Balance at 1st January

(48.8)

 

5.8

 

-

 

-

Cash flow hedges

 

 

 

 

 

 

 

- fair value changes

(25.1)

 

(52.2)

 

-

 

-

- deferred tax

3.5

 

12.6

 

-

 

-

- transfer to profit and loss

1.4

 

0.8

 

-

 

-

Share of associates' and joint ventures' fair

 

 

 

 

 

 

 

value changes of cash flow hedges, net of tax

(17.1)

 

(15.8)

 

-

 

-

Balance at 31st December

(86.1)

 

(48.8)

 

-

 

-

 

 

 

 

 

 

 

 

Other reserve

 

 

 

 

 

 

 

Balance at 1st January and 31st December

3.3

 

3.3

 

-

 

-

 

 

11  Non-controlling interests

 

Group

 

 

 

 

 

2020

 

2019

 

US$m

 

US$m

 

 

 

 

Balance at 1st January

8,124.4

 

7,342.1

Asset revaluation surplus

1.1

 

0.1

Financial assets at FVOCI

 

 

 

- fair value changes

9.9

 

10.5

- deferred tax

(0.1)

 

(0.2)

- transfer to profit and loss

0.8

 

(0.5)

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

 

 

 

Financial assets at FVOCI, net of tax

(2.2)

 

2.6

Cash flow hedges

 

 

 

- fair value changes

(20.8)

 

(77.9)

- deferred tax

1.5

 

19.0

- transfer to profit and loss

1.4

 

0.8

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

 

 

 

flow hedges, net of tax

(35.2)

 

(33.0)

Defined benefit pension plans

 

 

 

- remeasurements

(9.9)

 

(18.9)

- deferred tax

0.8

 

4.4

Share of associates' and joint ventures' remeasurements of

 

 

 

defined benefit pension plans, net of tax

(5.4)

 

(6.5)

Translation difference

(88.0)

 

259.6

Profit for the year

705.3

 

1,094.1

Issue of shares to non-controlling interests

38.9

 

28.6

Dividends paid

(390.6)

 

(497.7)

Change in shareholding

0.8

 

(2.5)

Acquisition of subsidiaries

-

 

(0.2)

Other

(0.2)

 

-

Balance at 31st December

8,332.5

 

8,124.4

 

 

12  Cash flows from operating activities

 

Group

 

 

 

 

 

2020

 

2019

 

US$m

 

US$m

 

 

 

 

Profit before tax

1,480.4

 

2,549.0

 

 

 

 

Adjustments for:

 

 

 

Financing income

(121.6)

 

(93.0)

Financing charges

258.6

 

362.7

Share of associates' and joint ventures' results after tax

(100.2)

 

(622.3)

Amortisation/depreciation of

 

 

 

- intangible assets

126.7

 

136.6

- right-of-use assets

189.7

 

127.3

- property, plant and equipment

763.0

 

795.5

- bearer plants

26.7

 

27.1

Impairment/(reversal of impairment) of

 

 

 

- intangible assets

33.9

 

-

- right-of-use assets

-

 

9.3

- property, plant and equipment

9.4

 

2.1

- bearer plants

-

 

7.9

- debtors

361.4

 

111.6

Fair value changes of:

 

 

 

- investment properties

(3.2)

 

(6.4)

- investment

 (113.4)

 

9.6

- agricultural produce

(5.8)

 

(4.8)

- livestock

3.4

 

-

- derivative not qualifying as hedges

2.4

 

-

(Profit)/loss on disposal of:

 

 

 

- intangible assets

1.3

 

0.1

- right-of-use assets

  -

 

(2.3)

- property, plant and equipment

(22.2)

 

(6.6)

- associates and joint ventures

(428.5)

 

(0.5)

- investments

(1.7)

 

(3.5)

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

80.8

 

59.7

Amortisation of borrowing costs for financial services companies

9.5

 

9.7

Write-down of stocks

14.3

 

33.5

Loss on modifications to lease terms

4.4

 

-

Changes in provisions

37.2

 

32.9

Foreign exchange loss

(22.6)

 

(10.4)

 

1,103.5

 

975.8

Operating profit before working capital changes

2,583.9

 

3,524.8

 

 

 

 

Changes in working capital:

 

 

 

Properties for sale

2.6

 

(27.6)

Stocks (1)

447.9

 

78.0

Concession rights

(9.8)

 

(77.3)

Financing debtors

135.2

 

(291.0)

Debtors (2)

910.8

 

(8.7)

Creditors (3)

(1,110.5)

 

(919.7)

Pensions

42.0

 

36.5

 

418.2

 

(1,209.8)

Cash flows from operating activities

3,002.1

 

2,315.0

 

(1)  Decrease in stock balance mainly due to lower purchases

(2)  Decrease in debtors balance due mainly to lower sales activities and repayment

(3)  Decrease in creditors balance due mainly to lower trade purchases amid slowdown in demand

 

 

13  Interested person transactions

 

 

 

Aggregate value of all interested person transactions (excluding transactions less than S$100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920)

 

Aggregate value of all interested person transactions conducted under shareholders' mandate pursuant to Rule 920 (excluding transactions less than S$100,000)

Name of interested person and nature of transaction

Nature of relationship

 

US$m

 

 

US$m

 

 

 

 

 

 

 

 

 

Six months ended 31st December 2020

 

 

 

 

 

 

 

 

 Jardine Engineering (S) Pte Ltd

Associate of the Company's controlling shareholder

 

 

 

 

 

 

  - Air conditioner replacement

 

 

-

 

 

0.1

 

 Jardine International Motors Limited

Associate of the Company's controlling shareholder

 

 

 

 

 

 

 - management consultancy services

 

 

1.6

 

 

-

 

 Jardine International Motors (S) Pte. Limited

Associate of the Company's controlling shareholder

 

 

 

 

 

 

 - management consultancy services

 

 

 0.3

 

 

-

 

Jardine Matheson Limited

Associate of the Company's controlling shareholder

 

 

 

 

 

 

- management support services

 

 

-

 

 

2.1

 

- digital and innovation services

 

 

1.0

 

 

-

 

- cyber security services

 

 

-

 

 

0.3

 

Jardine Matheson & Co., Ltd

Associate of the Company's controlling shareholder

 

 

 

 

 

 

- human resource and administration services

 

 

-

 

 

0.2

 

Jardine Matheson (Singapore) Ltd

Associate of the Company's controlling shareholder

 

 

 

 

 

 

- digital and innovation services

 

 

0.5

 

 

-

 

 

 

 

3.4

 

 

2.7

 

 

 

13  Interested person transactions (continued)

 

 

 

 

 

Aggregate value of all interested person transactions (excluding transactions less than S$100,000 and transactions conducted under shareholders' mandate pursuant  to Rule 920)

 

 

Aggregate value of all interested person transactions conducted under shareholders' mandate pursuant to Rule 920 (excluding transactions less than S$100,000)

Name of interested person and nature of transaction

Nature of relationship

 

US$m

 

 

US$m

 

  Year ended 31st December 2020

 

 

 

 

 

 

 

  Hongkong Land Ltd

Associate of the Company's controlling shareholder

 

 

 

 

 

 

  - management support services

 

 

-

 

 

0.1

 

 Jardine Engineering (S) Pte Ltd

Associate of the Company's controlling shareholder

 

 

 

 

 

 

  - Air conditioner replacement

 

 

-

 

 

0.1

 

 Jardine International Motors Limited

Associate of the Company's controlling shareholder

 

 

 

 

 

 

 - management consultancy services

 

 

3.7

 

 

-

 

 Jardine International Motors (S) Pte. Limited

Associate of the Company's controlling shareholder

 

 

 

 

 

 

 - management consultancy services

 

 

0.5

 

 

-

 

Jardine Matheson Limited

Associate of the Company's controlling shareholder

 

 

 

 

 

 

- management support services

 

 

-

 

 

3.1

 

- digital and innovation services

 

 

1.0

 

 

-

 

- cyber security services

 

 

-

 

 

0.3

 

Jardine Matheson & Co., Ltd

Associate of the Company's controlling shareholder

 

 

 

 

 

 

- human resource and administration services

 

 

-

 

 

0.4

 

Jardine Matheson (Singapore) Ltd

Associate of the Company's controlling shareholder

 

 

 

 

 

 

- digital and innovation services

 

 

0.5

 

 

-

 

 

 

 

5.7

 

 

4.0

 

 

 

14  Additional information

 

 

Group

 

 

 

 

 

 

 

2020

 

2019

Change

 

US$m

 

US$m

%

Astra International

 

 

 

 

Automotive

64.3

 

268.9

-76

Financial services

110.8

 

215.9

-49

Heavy equipment, mining, construction & energy

122.7

 

238.3

-49

Agribusiness

22.0

 

4.5

389

Infrastructure & logistics

1.2

 

9.9

-88

Information technology

0.5

 

6.8

-93

Property

2.9

 

2.7

7

 

324.4

 

747.0

-57

Less: Withholding tax on dividend

(15.0)

 

(31.3)

-52

 

309.4

 

715.7

-57

Direct Motor Interests

 

 

 

 

Singapore

18.5

 

57.1

-68

Malaysia

(0.7)

 

(5.6)

-88

Myanmar

(3.4)

 

(4.3)

-21

Indonesia (Tunas Ridean)

0.8

 

18.8

-96

Less: central overheads

(1.5)

 

(3.1)

-52

 

13.7

 

62.9

-78

 

 

 

 

 

Other Strategic Interests

 

 

 

 

Siam City Cement

24.2

 

23.5

3

Refrigeration Electrical Engineering

20.6

 

18.3

13

Vinamilk

36.7

 

35.7

3

Truong Hai Auto Corporation

 

 

 

 

- automotive

39.3

 

46.3

-15

- real estate

7.4

 

1.7

335

- agriculture

(8.1)

 

0.5

nm

 

38.6

 

48.5

-20

 

120.1

 

126.0

-5

 

 

 

 

 

Corporate costs

 

 

 

 

Central overheads

(21.4)

 

(23.5)

-9

Dividend income from other investments

5.1

 

5.0

2

Net financing charges

(21.7)

 

(40.2)

-46

Exchange differences

23.9

 

17.2

39

 

(14.1)

 

(41.5)

-66

 

 

 

 

 

Underlying profit attributable to shareholders

429.1

 

863.1

-50

 

 

15  Record Date


NOTICE IS HEREBY GIVEN that, subject to shareholders' approval being obtained at the forthcoming 52nd Annual General Meeting of the Company ("AGM") for the proposed final one-tier tax-exempt dividend of US$0.34 per share for the financial year ended 31st December 2020 (the "Final Dividend"), the Transfer Books and Register of Members of the Company will be closed from 5.00 p.m. on Friday, 28th May 2021 (the "Record Date") up to, and including Monday, 31st May 2021, for the purpose of determining shareholders' entitlement to the Final Dividend. Duly completed transfers of shares of the Company in physical scrip received by the Company's Share Registrar, M & C Services Private Limited at 112 Robinson Road #05-01, Singapore 068902 up to 5.00 p.m. on the Record Date will be registered before entitlements to the Final Dividend are determined.

Subject to approval being obtained as aforesaid, shareholders (being Depositors) whose securities accounts with The Central Depository (Pte) Limited are credited with shares of the Company as at 5.00 p.m. on the Record Date will rank for the Final Dividend.
 

The Final Dividend, if approved at the AGM, will be paid on 25th June 2021.

 

 

16  Others


The results do not include any pre-acquisition profits and have not been affected by any item, transaction or event of a material or unusual nature other than the non-trading items shown in Note 5 of this report.

The Company confirms that it has procured undertakings from all its directors and executive officers under Rule 720(1) of the Listing Manual.

No significant event or transaction other than as contained in this report has occurred between 1st January 2021 and the date of this report.

 

17  Notice pursuant to Rule 704(13) of the Listing Manual


Pursuant to Rule 704(13) of the SGX-ST Listing Manual, Jardine Cycle & Carriage Limited wishes to announce that no person occupying a managerial position in the Company or any of its principal subsidiaries is a relative of a director or chief executive officer or substantial shareholder of the Company.

 

- end -

 

 

 

For further information, please contact:
Jardine Cycle & Carriage Limited
Jeffery Tan Eng Heong
Tel: 65 64708111

The full text of the Financial Statements and Dividend Announcement for the year ended 31st December 2020 can be accessed through the internet at 'www.jcclgroup.com'.

 

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