25th February 2010 JARDINE … · 2009 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights...

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25th February 2010

JARDINE CYCLE & CARRIAGE LIMITED 2009 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights

• Underlying earnings per share up 7%

• Record results from Astra

• Interest in Thaco in Vietnam increased to 29%

• A 16% increase in full year dividend proposed

“The outlook for 2010 is positive for Jardine Cycle & Carriage as the countries in which the Group is represented continue to provide a reasonable operating environment. Concerns remain, however, that global uncertainties still have the potential to impact the Group’s activities.” Anthony Nightingale, Chairman 25th February 2010

Group Results

Year ended 31st December

2009 US$m

2008 US$m

Change

%

2009 S$m

Revenue 10,640 11,192 -5 15,457

Profit after tax 1,194 1,063 12 1,734

Underlying profit attributable to shareholders* 515 477 8 748

Profit attributable to shareholders 503 448 12 730

US¢ US¢ S¢

Underlying earnings* per share 144.73 135.38 7 210.24

Earnings per share 141.36 127.15 11 205.34

Dividend per share** 58.0 50.0 16 81.8

US$m US$m S$m

Shareholders’ funds 2,971 2,263 31 4,169

US$ US$ S$

Net asset value per share 8.35 6.36 31 11.72

The exchange rate of US$1=S$1.40 (31st December 2008: US$1=S$1.44) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.45 (31st December 2008: US$1=S$1.41) was used for translating the results for the year. The financial results for the year ended 31st December 2009 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors. * The basis for calculating underlying earnings is set out in Note 5 of this report.

** The S$ equivalent is an estimate as the actual amount of the final dividend will be determined on Books Closure Date referred to in Note 14.

Jardine Cycle & Carriage Limited 239 Alexandra Road Singapore 159930 Tel (65) 6473 3122 Fax (65) 6475 7088 [email protected]

www.jcclgroup.com

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CHAIRMAN’S STATEMENT Overview While 2009 began with concerns over the possibility of a deep and prolonged recession, by the middle of the year the positive measures taken by central banks and governments worldwide began to be felt. In particular, strong domestic demand and a relatively low dependence on exports led to growth in the Indonesian economy, enabling Astra to produce a fine result. Performance The Group’s revenue for the year ended 31st December 2009 was US$10.6 billion, 5% below the previous year. Underlying profit for the year grew by 8% to US$515 million. Underlying earnings per share were 7% higher at US¢144.73. Profit attributable to shareholders increased by 12% to US$503 million after accounting for a net non-trading loss of US$12 million, mainly representing fair value losses on oil palm plantations partly offset by a gain on a disposal by Tunas Ridean. Astra’s contribution to the Group’s underlying profit increased by 5% to US$485 million. The Group’s share of profit from its non-Astra motor interests increased by 32% to US$58 million. Corporate costs and withholding tax on dividends received from Indonesia amounted to US$28 million. The Board is recommending a final one-tier tax exempt dividend of US¢47.00 per share (2008: US¢36.00 per share). This, together with the interim dividend, will give a total dividend per share of US¢58.00 for 2009, an increase of 16%. Business Activity Astra enjoyed an excellent year and produced record results as the Indonesian economy was largely insulated from the global economic recession. Earnings from its motor car, auto component, financial services and contract mining activities improved, more than compensating for weaker results from its agribusiness and motorcycle operations. While the wholesale market for motor cars in Indonesia experienced a reduction, strong performances from its Toyota and Daihatsu marques enabled Astra to increase its market share. The motorcycle wholesale market also declined, although Astra did well to maintain its leadership position amidst aggressive competition. Its consumer finance operations showed improvement following growth in their overall loan book, while Bank Permata also reported a higher profit. Astra Agro Lestari experienced a decline in profit due to lower palm oil prices. United Tractor’s results improved following an excellent performance from its contract mining subsidiary, Pamapersada Nusantara, which benefited from the continued strength of the coal industry in Indonesia. The Group’s motor operations in Singapore did well in a challenging year. The performance of Mercedes-Benz was fairly resilient, showing only a modest decline in sales. Mitsubishi sales were adversely affected by the strong Yen, but Kia exceeded expectations with healthy demand for its competitively priced vehicles. In Malaysia, Cycle & Carriage Bintang reported an improvement in earnings, largely due to cost savings arising from its restructuring in 2008 and a refund of duties written off in earlier years. Tunas Ridean’s automotive sales reduced in line with the Indonesian market. It recorded a non-recurring gain upon the sale of a 51% interest in its wholly-owned finance business to Bank Mandiri at the beginning of the year. In February 2010, the Group increased its interest in Tunas Ridean from 38% to 44% at a cost of US$13 million.

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In Vietnam, Truong Hai Auto Corporation delivered a strong set of results as it benefited from a recovery in the economy. This compares with a loss recorded for the five-month period in 2008 that followed the Group’s acquisition of its initial 20% interest. The Group’s shareholding was increased to 29% in 2009 through a further investment of US$44 million. People We were deeply saddened by the passing of Michael Ruslim, President Director of Astra, who died on 20th January 2010 after a short but severe illness. Michael was a good friend and trusted colleague, and his death came as a great shock to us all. He first joined Astra in 1983 and became its inspirational leader following his appointment as President Director in 2005. He will be remembered for his outstanding achievements and for his great contribution to Indonesia. Prijono Sugiarto has become the acting President Director of Astra prior to the consideration of his formal appointment as the new President Director at an Extraordinary General Meeting to be held in March. Prijono joined Astra in 1990 and has most recently been responsible for all of Astra’s non-Toyota automotive businesses. On behalf of the Directors, I wish to thank our 137,000 staff employed across the Group. The Group’s success is due in large part to their hard work, dedication and spirit of excellence in the face of challenging times. I also wish to thank our customers, shareholders and business partners for their continued support. Outlook The outlook for 2010 is positive for Jardine Cycle & Carriage as the countries in which the Group is represented continue to provide a reasonable operating environment. Concerns remain, however, that global uncertainties still have the potential to impact the Group’s activities. Anthony Nightingale Chairman 25th February 2010

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Group Managing Director’s Review

Overview The Group’s excellent results for 2009 were significantly better than expected at the start of the year due primarily to the continued growth of the Indonesian economy which helped Astra to achieve a record profit. Performance The Group’s revenue of US$10.6 billion for the year ended 31st December 2009 was 5% down on the previous year. Underlying profit was 8% higher at US$515 million, while underlying earnings per share were up 7% at US¢144.73. Astra’s contribution to underlying profit grew by 5% to US$485 million, despite a 6% decline in the Rupiah exchange rate compared with the previous year. The Group’s non-Astra motor interests contributed US$58 million, an increase of 32%, mainly due to strong results from Vietnam. Corporate costs and withholding tax on dividends from Indonesia amounted to US$28 million. The profit attributable to shareholders for the year was 12% higher at US$503 million, after accounting for a non-trading loss of US$12 million. The non-trading loss consisted of a fair value loss in the Group’s oil palm plantations, partly offset by a gain on the sale by Tunas Ridean of a 51% interest in its finance company. The Group’s consolidated net cash, excluding borrowings within Astra’s financial services operations, was US$64 million at 31st December 2009. Strong operating cash flows during the year led to an improvement over the consolidated net debt of US$157 million existing at the end of 2008. The net debt within Astra’s financial services operations was US$1.5 billion, up from US$1.2 billion at the end of 2008. At the Jardine Cycle & Carriage parent company level, there was net cash of US$1 million. Group Review Astra The Indonesian economy was one of the very few in Southeast Asia that grew in 2009, benefiting from a fairly resilient domestic demand and a relatively low dependence on exports. Following a slow first half, Astra achieved a record net profit for the year equivalent to US$969 million under Indonesian accounting standards, some 9% higher in its reporting currency than in 2008. While earnings from its agribusiness and motorcycle business were down, this was more than compensated by improved profits in its motor car, auto component, financial services and contract mining activities. Automotive and Financial Services Astra’s automotive and financial services businesses contributed US$314 million to the Group’s underlying profit in 2009, 6% higher than the previous year despite reduced motorcycle sales and the weaker Rupiah. The Indonesian wholesale motor car market faced weaker demand, particularly in the first half and declined by 20% to some 486,000 units in 2009. A popular model range meant that Astra’s motor car sales decreased by only 12% to 281,000 units, producing a strong improvement in its market share from 52% to 58%. The group’s overall results benefited from a firming exchange rate and cost reduction programmes.

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The Indonesian wholesale motorcycle market declined by 6% to 5.9 million units, having been 17% down at the half year. Astra Honda Motor’s sales declined in line with the market to 2.7 million units, maintaining its market share at 46%. Automotive component manufacturer Astra Otoparts reported a 36% increase in net profit, with improvements across most of its activities. Astra’s consumer finance operations produced higher profits following the growth in their loan book. Astra’s 45%-owned associate, Bank Permata, reported a 6% improvement in net profit, mainly due to higher operating income. Natural Resources & Other Astra’s natural resources and other businesses, comprising agribusiness, heavy equipment, mining, information technology and infrastructure, contributed US$191 million to the Group’s underlying profit, unchanged from the previous year. This was primarily due to the strong performance from most of the businesses, which more than compensated for the impact of lower crude palm oil prices. In agribusiness, 80%-held Astra Agro Lestari reported a net profit of US$160 million, representing a 37% decline. While palm oil production rose 10% in 2009 to 1.1 million tonnes, crude palm oil prices achieved were some 13% lower than in the previous year. In heavy equipment, 60%-held United Tractors recorded a 43% rise in net profit to US$369 million. While sales of Komatsu heavy equipment fell 28% to 3,100 units, the negative effect on earnings was offset by higher revenues from parts and services. Mining subsidiary Pamapersada Nusantara recorded a strong improvement in its results as it benefited from the continued expansion of coal production in Indonesia. It increased coal extraction by 15% to 68 million tonnes and overburden removal by 35% to 598 million bcm. In information technology, 77%-owned Astra Graphia reported a 7% improvement in net profit, due to higher revenues. Astra’s infrastructure investments performed satisfactorily as 30%-held PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, increased its sales volume by 2% to 138 million cubic metres, and Marga Mandalasakti, the 79%-owned toll road operator, reported slightly higher traffic volume of 27 million vehicles during the year.

Other Motor Interests Underlying profit from the Group’s other motor interests in 2009 was up 32% at US$58 million.

Singapore The Singapore motor operations performed satisfactorily in a challenging year, contributing a profit of US$36 million. This result, which was marginally higher than the previous year, benefited from government stimulus subsidies. The overall passenger car market fell by 27% to 72,400 units in 2009, while the commercial vehicle market fell by 31% to 7,500 units. Although the Group sold a total of 11,000 passenger cars, which was 16% lower than the previous year, its market share increased from 13% to 15%. Sales of commercial vehicles were 22% lower at 600 units, reflecting an 8% market share. Mercedes-Benz passenger car sales were fairly resilient, showing only a modest sales decline. Mitsubishi passenger car sales were adversely impacted by the strong Yen and fell by 60%, while Kia passenger car sales grew by 87% owing to competitive pricing.

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Malaysia In Malaysia, 59%-owned Cycle & Carriage Bintang contributed a 29% increase in underlying profit of US$4 million as it benefited from a refund of duties written off in earlier years and lower overhead expenses following the restructuring in 2008. Its Mercedes-Benz passenger car sales in 2009 were some 6% higher than in the previous year, which had suffered from supply constraints of the C-Class.

Indonesia Tunas Ridean saw sales of motor vehicles and motorcycles decline by 6% and 10%, respectively. In addition, lower finance income was earned due to the sale of a 51% stake in the wholly-owned Tunas Finance to Bank Mandiri. It contributed an underlying profit of US$7 million, 19% lower, with the impact of lower volume and the weaker Rupiah partly mitigated by higher interest income earned from the proceeds from the sale of its finance business. The Group increased its shareholding in Tunas Ridean from 38% to 44% in February 2010.

Vietnam 29%-owned associate, Truong Hai Auto Corporation (“Thaco”), contributed an underlying profit of US$11 million. This compares with a loss in 2008 for the five months following the Group’s initial investment. In 2009, the vehicle market in Vietnam grew by 9% to 119,000 units as the economy recovered, while Thaco’s vehicle sales grew by 35% to 21,600 units, resulting in its market share increasing from 15% to 18%. Outlook After the fine result in 2009, the outlook for the Group in 2010 remains positive as the Group’s businesses are continuing to trade well. The overall performance for the year, however, is dependent on the economic recovery in the region being maintained. Ben Keswick Group Managing Director 25th February 2010

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Jardine Cycle & Carriage Limited

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

2009 2008 Change

Note US$m US$m %

Revenue 3 10,640.4 11,192.2 -5

Net operating costs 2 (9,333.7) (10,041.1) -7

Operating profit 2 1,306.7 1,151.1 14

Financing income 54.2 63.7 -15

Financing charges (48.4) (54.9) -12

Net financing income 5.8 8.8 -34

Share of associates’ and joint ventures’ results after tax

274.5

270.1 2

Profit before tax 1,587.0 1,430.0 11

Tax (393.4) (366.6) 7

Profit after tax 3 1,193.6 1,063.4 12

Profit attributable to:

Shareholders of the Company 502.8 448.2 12

Minority interests 690.8 615.2 12

1,193.6 1,063.4 12

US¢ US¢

Earnings per share 5 141.36 127.15 11

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

2009 2008 US$m US$m Profit for the year 1,193.6 1,063.4 Revaluation of assets - surplus arising during the year 17.2 77.5 Translation differences - gains/(losses) arising during the year 812.3 (708.6) Available-for-sale investments - gains/(losses) arising during the year 48.6 (17.0) - transfer to profit and loss (8.4) 3.6 Cash flow hedges - gains/(losses) arising during the year (17.3) 7.9 Defined benefit pension plans - actuarial losses arising during the year (6.3) (25.4) Share of other comprehensive income of associates and joint ventures, net of tax

3.5

16.4

Tax relating to components of other comprehensive income 2.5 63.7

Other comprehensive income for the year 852.1 (581.9) Total comprehensive income for the year 2,045.7 481.5

Attributable to: Shareholders of the Company 877.9 186.3 Minority interests 1,167.8 295.2 2,045.7 481.5

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Consolidated Balance Sheet at 31st December

Note 2009 2008 US$m US$m

Non-current assets Intangible assets 634.7 531.2 Leasehold land use rights 414.4 347.8 Property, plant and equipment 2,140.4 1,599.2 Investment properties 23.1 17.4 Plantations 425.4 352.7 Interests in associates and joint ventures 1,715.4 1,355.6 Non-current investments 309.1 179.7 Non-current debtors 1,196.7 893.4 Deferred tax assets 69.3 57.4 6,928.5 5,334.4

Current assets Current investments 2.3 3.7 Stocks 895.7 921.4 Current debtors 2,222.2 1,690.3 Current tax assets 66.8 40.8 Bank balances and other liquid funds - non-financial services companies 805.3 656.1 - financial services companies 156.2 183.5

961.5 839.6 4,148.5 3,495.8

Non-current assets classified as held for sale - 0.1 4,148.5 3,495.9 Total assets 11,077.0 8,830.3

Non-current liabilities Non-current creditors 74.4 93.5 Provisions 41.2 30.9 Long-term borrowings 7 - non-financial services companies 417.2 400.7 - financial services companies 717.6 563.1 1,134.8 963.8 Deferred tax liabilities 246.3 219.3 Pension liabilities 101.5 67.0 1,598.2 1,374.5

Current liabilities Current creditors 1,654.8 1,254.9 Provisions 34.0 24.8 Current borrowings 7 - non-financial services companies 324.6 413.2 - financial services companies 918.3 798.5 1,242.9 1,211.7 Current tax liabilities 115.8 141.9 3,047.5 2,633.3

Total liabilities 4,645.7 4,007.8

Net assets 6,431.3 4,822.5

Equity Share capital 8 632.3 632.3 Revenue reserve 9 1,885.3 1,552.4 Other reserves 10 453.6 78.0 Shareholders' funds 2,971.2 2,262.7 Minority interests 11 3,460.1 2,559.8 Total equity 6,431.3 4,822.5

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

Attributable to shareholders of the Company Asset Fair value Attributable Share Revenue revaluation Translation and other to minority 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 2009 Balance at 1st January 632.3 1,552.4 397.7 (323.0) 3.3 2,262.7 2,559.8 4,822.5 Total comprehensive income - 502.3 9.0 354.7 11.9 877.9 1,167.8 2,045.7 Dividends paid by the Company - (171.1) - - - (171.1) - (171.1) Dividends paid to minority shareholders - - - - - - (258.1) (258.1) Change in shareholding - 1.7 - - - 1.7 (16.0) (14.3) Acquisition/disposal of subsidiaries - - - - - - 6.6 6.6 Balance at 31st December 632.3 1,885.3 406.7 31.7 15.2 2,971.2 3,460.1 6,431.3

2008 Balance at 1st January 555.2 1,272.9 329.6 (3.2) 5.2 2,159.7 2,398.2 4,557.9 Total comprehensive income - 439.9 68.1 (319.8) (1.9) 186.3 295.2 481.5 Issue of shares by the Company 77.1 - - - - 77.1 - 77.1 Issue of shares to minority shareholders - - - - - - 153.8 153.8 Dividends paid by the Company - (159.5) - - - (159.5) - (159.5) Dividends paid to minority shareholders - - - - - - (257.8) (257.8) Acquisition/disposal of subsidiaries - - - - - - (26.8) (26.8) Change in shareholding - 0.2 - - - 0.2 (0.2) - Other - (1.1) - - - (1.1) (2.6) (3.7) Balance at 31st December 632.3 1,552.4 397.7 (323.0) 3.3 2,262.7 2,559.8 4,822.5

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Company Balance Sheet at 31st December

Note

2009

2008 US$m US$m Non-current assets Property, plant and equipment 0.5 0.5 Interests in subsidiaries 1,260.1 1,275.7 Interests in associates 146.9 100.1 Non-current investment 7.6 6.8 1,415.1 1,383.1

Current assets Current debtors 0.8 8.5 Bank balances and other liquid funds 1.1 4.0 1.9 12.5 Total assets 1,417.0 1,395.6 Non-current liabilities Deferred tax liabilities 0.4 0.3 0.4 0.3

Current liabilities Current creditors 30.5 73.2 Current tax liabilities 0.9 0.8 31.4 74.0 Total liabilities 31.8 74.3 Net assets 1,385.2 1,321.3

Share capital and reserves Share capital 8 632.3 632.3 Revenue reserve 9 492.1 463.5 Other reserves 10 260.8 225.5

Shareholders’ funds 1,385.2 1,321.3

Net asset value per share US$3.89 US$3.71

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

2009 2008 US$m US$m Profit after tax 199.7 190.3 Translation difference - gains arising during the year 34.7 1.7 Available-for-sale investment - gains arising during the year 0.6 0.3 Other comprehensive income for the year 35.3 2.0 Total comprehensive income for the year 235.0 192.3

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

Share

capital

Revenue reserve

Translation

reserve

Fair value and other reserves

Total equity

US$m US$m US$m US$m US$m 2009 Balance at 1st January 632.3 463.5 224.9 0.6 1,321.3 Total comprehensive income - 199.7 34.7 0.6 235.0 Dividends paid - (171.1) - - (171.1) Balance at 31st December 632.3 492.1 259.6 1.2 1,385.2

2008 Balance at 1st January 555.2 432.7 223.2 0.3 1,211.4 Total comprehensive income - 190.3 1.7 0.3 192.3 Issue of shares 77.1 - - - 77.1 Dividends paid - (159.5) - - (159.5) Balance at 31st

December 632.3 463.5 224.9 0.6 1,321.3

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

2009 2008

Note US$m US$m

Cash flows from operating activities

Cash generated from operations 12 1,536.5 1,409.6

Interest paid (46.1) (55.4)

Interest received 54.3 64.4

Other finance costs paid (3.6) (3.1)

Income tax paid (462.6) (353.5)

(458.0) (347.6)

Net cash flows from operating activities 1,078.5 1,062.0

Cash flows from investing activities

Sale of leasehold land use rights 1.7 9.4

Sale of property, plant and equipment 15.7 56.6

Sale of investment properties 1.2 9.1

Sale of plantations 0.4 13.8

Sale of subsidiaries, net of cash disposed (1.7) (33.3)

Sale of shares in associates and joint ventures 0.1 4.0

Sale of investments 52.0 66.4

Purchase of intangible assets (38.8) (20.5)

Purchase of leasehold land use rights (20.2) (19.8)

Purchase of property, plant and equipment (418.6) (499.9)

Purchase of plantations (77.4) (70.5)

Purchase of subsidiaries, net of cash acquired - (187.2)

Purchase of shares in associates and joint ventures (46.2) (80.4)

Purchase of investments (105.1) (156.2)

Capital repayment of investments 3.9 14.3

Advances to associates (60.0) -

Dividends received from associates and joint ventures (net) 184.7 168.2

Net cash flows used in investing activities (508.3) (726.0)

Cash flows from financing activities

Proceeds from issue of shares - 0.1

Drawdown of loans 1,745.9 2,528.6

Repayment of loans (1,860.2) (2,364.0)

Changes in controlling interests in subsidiaries (14.3) (42.3)

Investments by minority shareholders 9.7 152.7

Dividends paid to minority interests (258.1) (257.8)

Dividends paid by the Company (171.1) (82.5)

Net cash flows used in financing activities (548.1) (65.2)

Net change in cash and cash equivalents 22.1 270.8

Cash and cash equivalents at the beginning of the year 839.1 672.1

Effect of exchange rate changes 100.9 (103.8)

Cash and cash equivalents at the end of the year 962.1 839.1

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Notes

1 Basis of preparation

The financial statements are consistent with those set out in the 2008 audited accounts which have been prepared in accordance with International Financial Reporting Standards (“IFRS”). There have been no changes to the accounting policies described in the 2008 audited accounts except for the adoption of the new standards, amendments and interpretations shown below: IFRS 8 Operating Segments IAS 1 (revised 2007) Presentation of Financial Statements IAS 23 (revised 2007) Borrowing Costs Amendments to IFRS 1 Cost of an Investment in a Subsidiary, Jointly Controlled Entity or and IAS 27 Associate Amendment to IFRS 2 Vesting Conditions and Cancellations Amendments to IFRS 7 Improving Disclosures about Financial Instruments IFRIC 13 Customer Loyalty Programmes IFRIC 16 Hedges of a Net Investment in a Foreign Operation Improvements to IFRSs (2008)

The Group also early adopted the following standards and amendments to existing standards which are

relevant to its operations: IFRS 3 (revised 2008) Business Combinations Amendment to IFRS 8 Operating Segments Amendment to IAS 27 Consolidated and Separate Financial Statements The adoption of these new standards, amendments and interpretations did not have a material impact on the results of the Group. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting 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$1.4032 (2008:US$1=S$1.4390), US$1=RM3.4218 (2008:US$1=RM3.4735), US$1=IDR9,400 (2008:US$1=IDR 10,950) and US$1=VND18,479 (2008:US$1=VND17,483).

The exchange rates used for translating the results for the year are US$1=S$1.4527 (2008: US$1=S$1.4099), US$1=RM3.5238 (2008:US$1=RM3.3364), US$1=IDR10,359 (2008:US$1=IDR 9,757) and US$1=VND17,810 (2008:US$1=VND16,532).

2 Net operating costs and operating profit 2009 2008 Change

US$m US$m %

Cost of sales (8,304.8) (8,829.2) -6

Other operating income 130.0 156.7 -17

Selling and distribution expenses (518.1) (565.8) -8

Administrative expenses (564.8) (592.6) -5

Other operating expenses (1)

(76.0) (210.2) -64

Net operating costs (9,333.7) (10,041.1) -7

(1) Decrease mainly due to lower fair value changes of plantations

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2 Net operating costs and operating profit (continued) 2009 2008 Change

US$m US$m %

Operating profit is determined after including:

Depreciation of property, plant and equipment (346.7) (287.1) 21

Amortisation of leasehold land use rights and intangible assets (36.9) (26.3) 40

Fair value changes of plantations (63.5) (161.9) -61

Profit/(loss) on disposal of:

- leasehold land use rights (1.2) 6.5 nm

- property, plant and equipment 7.8 46.0 -83

- subsidiaries (2.4) 3.3 nm

- associates and joint ventures - 1.1 -100

- repossessed assets (37.6) (50.7) -26

- investments 8.0 (3.1) nm

Dividend and interest income from investments 14.5 15.8 -8

(Write-down)/reversal of write-down of stocks 0.6 (15.1) nm

(Impairment)/reversal of impairment of:

- debtors (63.0) (106.6) -41

- leasehold land use rights 4.8 (5.1) nm

Fair value changes of derivatives not qualified as hedges (1)

(9.9) 16.7 nm

Net exchange gain/(loss) (2)

14.9 (49.7) nm

nm: not meaningful

(1) Decrease due mainly to hedging of Indonesian Rupiah against United States Dollars (2) Increase due mainly to stronger Indonesian Rupiah against United States Dollars

3 Revenue and Profit after tax

2009 2008 Change

US$m US$m %

Revenue:

- 1st half 4,615.1 5,718.5 -19

- 2nd half 6,025.3 5,473.7 10

10,640.4 11,192.2 -5

Profit after tax:

- 1st half 508.1 637.3 -20

- 2nd half 685.5 426.1 61

1,193.6 1,063.4 12

4 Dividends

Group and Company 2009 2008 US$m US$m Dividends paid: - Final one-tier tax exempt dividend in respect of previous year of US¢36.00 per share (2008: in respect of 2007 of US¢32.00)

132.2

109.1

- Interim one-tier tax exempt dividend in respect of current year of US¢11.00 per share (2008: US¢14.00)

38.9

50.4

171.1 159.5

Value of scrip dividends allotted and issued: - Final dividend of previous financial year - 77.0

The Board is recommending a final dividend of US¢47.00 per share which, together with the interim dividend, will give a total dividend for the year of US¢58.00 per share.

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5 Earnings per share 2009 2008 US$m US$m Basic earnings per share Profit attributable to shareholders 502.8 448.2 Weighted average number of ordinary shares in issue (millions) 355.7 352.5

Basic earnings per share US¢141.36 US¢127.15

Diluted earnings per share Profit attributable to shareholders 502.8 448.2 Weighted average number of ordinary shares in issue (millions)

355.7

352.5 Adjustment for assumed conversion of share options (millions) - * - * Weighted average number of ordinary shares for diluted earnings per share (millions)

355.7

352.5

Diluted earnings per share US¢141.36 US¢127.15

Underlying earnings per share Underlying profit attributable to shareholders 514.8 477.2 Basic underlying earnings per share US¢144.73 US¢135.38

Diluted underlying earnings per share US¢144.73 US¢135.38

* less than 0.1 million

A reconciliation of the profit attributable to shareholders and underlying profit attributable to shareholders is as follows: 2009 2008 US$m US$m Profit attributable to shareholders 502.8 448.2 Less: Non-trading items (net of tax and minority interests) Fair value changes of: - plantations (18.8) (47.0) - investment properties 1.0 0.2 Impact of reduced tax rates on deferred tax on valuation of franchise rights - 4.9 Profit/(loss) on disposal of: - plantation assets - 9.3 - surplus properties - 2.2 - subsidiaries and associates 1.0 (0.1) - subsidiary of an associate 4.1 -

Restructuring of operations 0.7 1.5

(12.0) (29.0) Underlying profit attributable to shareholders 514.8 477.2

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5 Earnings per share (continued)

The underlying profit attributable to shareholders by business is shown below:

2009 2008 Change

US$m US$m %

Astra

Motor vehicles 121.5 111.4 9

Motorcycles 70.1 82.6 -15

Other automotive 33.8 25.3 34

Financial services 88.2 76.2 16

Automotive and financial services 313.6 295.5 6

Agribusiness 64.6 95.9 -33

Heavy equipment and mining 111.1 81.3 37

Other 15.7 14.4 9

Natural resources and other 191.4 191.6 -

Corporate costs and other (20.0) (26.6) -25

485.0 460.5 5

Other motor interests

Singapore 35.7 34.6 3

Malaysia 4.5 3.5 29

Indonesia (Tunas Ridean) 7.2 8.9 -19

Vietnam 10.8 (2.9) nm

58.2 44.1 32

Corporate costs (11.2) (10.8) 4

Withholding tax on dividends from Indonesia (17.2) (16.6) 4

(28.4) (27.4) 4

Underlying profit attributable to shareholders 514.8 477.2 8

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:

Other Corporate motor and other Astra interests costs Group US$m US$m US$m US$m

2009 Revenue 9,537.3 1,103.1 - 10,640.4 Net operating costs (8,276.4) (1,047.6) (9.7) (9,333.7) Operating profit 1,260.9 55.5 (9.7) 1,306.7 Financing income 53.8 0.4 - 54.2 Financing charges (46.8) (0.8) (0.8) (48.4) Net financing income/(charges) 7.0 (0.4) (0.8) 5.8 Share of associates’ and joint ventures’ results after tax 252.4 22.1 - 274.5 Profit before tax 1,520.3 77.2 (10.5) 1,587.0 Tax (366.0) (10.2) (17.2) (393.4) Profit after tax 1,154.3 67.0 (27.7) 1,193.6 Minority interests (686.1) (4.7) - (690.8) Profit attributable to shareholders 468.2 62.3 (27.7) 502.8

Non-trading items 16.8 (4.1) (0.7) 12.0

Underlying profit attributable to shareholders 485.0 58.2 (28.4) 514.8

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

77.6

(14.8)

1.6

64.4

Total equity 6,109.4 328.3 (6.4) 6,431.3

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6 Segment information (continued)

Other Corporate motor and other Astra interests costs Group US$m US$m US$m US$m

2008 Revenue 9,973.6 1,218.6 - 11,192.2 Net operating costs (8,869.2) (1,161.7) (10.2) (10,041.1) Operating profit 1,104.4 56.9 (10.2) 1,151.1 Financing income 63.0 0.6 0.1 63.7 Financing charges (52.5) (1.1) (1.3) (54.9) Net financing income/(charges) 10.5 (0.5) (1.2) 8.8 Share of associates’ and joint ventures’ results after tax 264.0 6.1 - 270.1 Profit before tax 1,378.9 62.5 (11.4) 1,430.0 Tax (342.1) (8.5) (16.0) (366.6) Profit after tax 1,036.8 54.0 (27.4) 1,063.4

Minority interests (609.1) (6.1) - (615.2)

Profit attributable to shareholders 427.7 47.9 (27.4) 448.2

Non-trading items 32.8 (3.8) - 29.0

Underlying profit attributable to shareholders 460.5 44.1 (27.4) 477.2

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

(168.6)

6.3

4.7

(157.6)

Total equity 4,520.1 292.5 9.9 4,822.5

7 Borrowings

Group

2009 2008 US$m US$m

Long-term borrowings: - secured 920.1 637.9 - unsecured 214.7 325.9 1,134.8 963.8 Current borrowings: - secured 969.9 832.4 - unsecured 273.0 379.3 1,242.9 1,211.7 Total borrowings 2,377.7 2,175.5

Certain subsidiaries of the Group have pledged their assets in order to obtain bank facilities from financial

institutions. The value of assets pledged was US$1,369.9 million (31st December 2008: US$1,074.1 million).

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8 Share capital Company

2009 2008

US$m US$m Issued and fully paid: Balance at 1st January – 355,677,660 (2008: 349,260,506) ordinary shares 632.3 555.2 Issue of 1,000 (2008: 66,000) ordinary shares under the CCL Executives’ Share Option Scheme -* 0.1 Issue of Nil (2008: 6,351,154) ordinary shares under the Scrip Dividend Scheme - 77.0 Balance at 31st December – 355,678,660 (2008: 355,677,660) ordinary shares 632.3 632.3

* less than 0.1 million

The Company did not hold any treasury shares as at 31st December 2009 (31st December 2008: Nil). The number of shares that may be issued on conversion of all outstanding options granted pursuant to the

CCL Executives’ Share Option Scheme amounted to 34,000 as at 31st December 2009 (31st December 2008: 35,000).

Except for those mentioned above, there were no other rights, bonus or equity issues during the financial

year. 9 Revenue reserve

Group Company 2009 2008 2009 2008

US$m US$m US$m US$m Movements: Balance at 1st January 1,552.4 1,272.9 463.5 432.7 Asset revaluation reserve realised on disposal of land and buildings

2.5

0.7

-

-

Defined benefit pension plans - actuarial loss (1.5) (10.3) - - - deferred tax 0.4 2.9 - -

Share of associates’ and joint ventures’ actuarial loss on defined benefit pension plans, net of tax

(1.9)

(1.6)

-

- Profit attributable to shareholders 502.8 448.2 199.7 190.3 Dividends paid by the Company (171.1) (159.5) (171.1) (159.5) Change in shareholding 1.7 0.2 - - Other - (1.1) - -

Balance at 31st December 1,885.3 1,552.4 492.1 463.5

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10 Other reserves

Group Company

2009 2008 2009 2008

US$m US$m US$m US$m Composition: Asset revaluation reserve 406.7 397.7 - -

Translation reserve 31.7 (323.0) 259.6 224.9

Fair value reserve 16.4 (3.0) 0.9 0.3

Hedging reserve (4.8) 2.7 - -

Share option reserve 0.3 0.3 0.3 0.3

Other reserve 3.3 3.3 - -

Balance at 31st December 453.6 78.0 260.8 225.5

Group Company

2009 2008 2009 2008 US$m US$m US$m US$m

Movements: Asset revaluation reserve Balance at 1st January 397.7 329.6 - - Asset revaluation - revaluation surplus 8.7 33.9 - - - deferred tax (1.5) 25.4 - - - transfer to revenue reserve on disposal of assets (2.5) (0.7) - -

Share of associates’ and joint ventures’ asset revaluation, net of tax

4.3

9.5

-

-

Balance at 31st December 406.7 397.7 - -

Translation reserve Balance at 1st January (323.0) (3.2) 224.9 223.2 Translation difference 354.7 (319.8) 34.7 1.7 Balance at 31st December 31.7 (323.0) 259.6 224.9

Fair value reserve Balance at 1st January (3.0) 2.5 0.3 - Available-for-sale investments

- fair value changes 21.9 (6.7) 0.6 0.3 - deferred tax (0.3) 0.4 - - - transfer to profit and loss (4.0) 1.7 - -

Share of associates’ and joint ventures’ fair value changes of available-for-sale investments, net of tax

1.8

(0.9)

-

-

Balance at 31st December 16.4 (3.0) 0.9 0.3

Hedging reserve Balance at 1st January 2.7 (0.9) - - Cash flow hedges - -

- fair value changes (6.7) 3.3 - - - deferred tax 1.7 (0.8) - -

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

(2.5)

1.1

-

-

Balance at 31st December (4.8) 2.7 - -

Share option reserve

Balance at 1st January and 31st December 0.3 0.3 0.3 0.3

Other reserve Balance at 1st January and 31st December 3.3 3.3 - -

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11 Minority interests

Group 2009 2008 US$m US$m Balance at 1st January 2,559.8 2,398.2 Asset revaluation - revaluation surplus 8.5 43.6 - deferred tax (1.3) 32.1 Share of associates’ and joint ventures’ asset revaluation, net of tax 4.4 9.7 Available-for-sale investments - fair value changes 26.7 (10.3) - deferred tax (0.3) 0.8 - transfer to profit and loss (4.4) 1.9 Share of associates’ and joint ventures’ fair value changes of

available-for-sale investments, net of tax

1.8

(0.9) Cash flow hedges - fair value changes (10.6) 4.6 - deferred tax 2.6 (1.2) Share of associates’ and joint ventures’ fair value changes of cash

flow hedges, net of tax

(2.5)

1.1 Defined benefit pension plans - actuarial loss (4.8) (15.1) - deferred tax 1.2 4.1 Share of associates’ and joint ventures’ actuarial loss on defined

benefit pension plans, net of tax

(1.9)

(1.6) Translation difference 457.6 (388.8) Profit for the year 690.8 615.2 Issue of shares - 151.2 Dividends paid (258.1) (257.8) Change in shareholding (16.0) (0.2) Acquisition/disposal of subsidiaries 6.6 (26.8) Balance at 31st December 3,460.1 2,559.8

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12 Cash flows from operating activities

2009 2008 US$m US$m Profit before tax 1,587.0 1,430.0 Adjustments for: Financing income (54.2) (63.7) Financing charges 48.4 54.9 Share of associates’ and joint ventures’ results after tax (274.5) (270.1) Depreciation of property, plant and equipment 346.7 287.1 Amortisation of leasehold land use rights and intangible assets 36.9 26.3 Fair value changes of: - plantations 63.5 161.9 - investment properties (2.4) (0.5) Impairment/(reversal of impairment) of: - debtors 63.0 106.6 - leasehold land use rights (4.8) 5.1 - property, plant and equipment 0.3 - - intangible assets 0.6 0.5 (Profit)/loss on disposal of: - leasehold land use rights 1.2 (6.5) - property, plant and equipment (7.8) (46.0) - intangible assets 0.3 - - investment properties 0.1 (0.9) - plantations - (3.6) - subsidiaries 2.4 (3.3) - associates and joint ventures - (1.1) - repossessed assets 37.6 50.7 - investments (8.0) 3.1 (Reversal of write-down)/write-down of stocks (0.6) 15.1 Revaluation deficit on property, plant and equipment 1.5 2.8 Changes in provisions 17.6 21.3 Foreign exchange (gain)/loss (9.1) 3.9 258.7 343.6 Operating profit before working capital changes 1,845.7 1,773.6 Changes in working capital: Stocks 54.2 (485.6)

Financing debtors (1)

(341.7) (218.8)

Debtors (2)

(212.9) 1.8

Creditors (3)

175.6 329.7

Pensions 15.6 8.9 (309.2) (364.0) Cash flows from operating activities 1,536.5 1,409.6

(1) Increase due to higher financing activities (2) Increase due to higher sales activities (3) Increase due to higher purchases, deferred income and longer credit period

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13 Interested person transactions

Name of interested person

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)

US$m US$m Three months ended 31st December 2009

Jardine Matheson Limited - management consultancy services

-

1.2 MCL Land Limited - sale of a motor vehicle - 0.2 Jardine OneSolution (2001) Pte Ltd - purchase of services - 0.1 - 1.5

Year ended 31st December 2009

Jardine Matheson Limited

- management consultancy services - 2.6

Cold Storage Singapore (1983) Pte Ltd

- sale of a motor vehicle - 0.2 MCL Land Limited - sale of a motor vehicle - 0.2 Jardine OneSolution (2001) Pte Ltd - purchase of computer equipment and services - 0.2 JLT Risk Solutions Asia Pte Limited - insurance services - 0.1

- 3.3

14 Closure of books

NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members will be closed from 5.00 pm on

Friday, 14th May 2010 to Monday, 17th May 2010 for the purpose of determining shareholders’ entitlement to the final dividend.

Duly completed transfers received by Jardine Cycle & Carriage Limited’s Share Registrar, M & C Services

Private Limited at 138 Robinson Road #17-00, The Corporate Office, Singapore 068906 up to 5.00 p.m. on Friday, 14th May 2010 (“Books Closure Date”) will be registered before entitlements to the final dividend are determined. Shareholders whose securities accounts with The Central Depository (Pte) Limited (“CDP”) are credited with shares as at the Books Closure Date will be entitled to the final dividend. The final dividend will be paid on or about Thursday, 24th June 2010. Shareholders will have the option to receive the dividend in Singapore Dollars and in the absence of any election, the dividend will be paid in US Dollars. Details on this elective will be furnished to shareholders in due course.

15 Others

The results do not include any pre-acquisition profits and have not been affected by any item, transaction or event

of a material or unusual nature other than the non-trading items shown in Note 5 of this report. No significant event or transaction has occurred between 1st January 2010 and the date of this report, except that

on 4th February 2010, the Company purchased an additional 5.5% stake in PT Tunas Ridean Tbk for approximately US$12.5 million, increasing its interest to 43.8%.

- end -

For further information, please contact:


Ho Yeng Tat Tel: 65 64708108

The full text of the Financial Statements and Dividend Announcement for the year ended 31st December 2009 can be

accessed through the internet at ‘www.jcclgroup.com’.

Corporate Profile Jardine Cycle & Carriage (“JC&C”) is a leading Singapore-listed company and a member of the Jardine Matheson group. It has an interest of just over 50% in Astra, a major listed Indonesian conglomerate, and other motor interests in Southeast Asia. Together with its subsidiaries and associates, JC&C employs some 137,000 people across Indonesia, Malaysia, Singapore and Vietnam. Astra is the largest independent automotive group in Southeast Asia, with additional interests in financial services, agribusiness, heavy equipment and mining, information technology and infrastructure. JC&C has directly-held subsidiaries operating in Singapore and Malaysia under the Cycle & Carriage banner, and associates, Tunas Ridean in Indonesia and Truong Hai Auto Corporation in Vietnam. The JC&C Group represents some of the world’s leading motoring marques including Mercedes-Benz, Honda and Toyota.

25th February 2010 JARDINE … · 2009 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights...

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