Jardine Matheson Holdings Limited · SGX:J36
Jardine Matheson — Jardine Cycle & Carriage — FY2018 Earnings Presentation
35 slides from Jardine Matheson's earnings presentation, Mar 8, 2019
Slide 1: SGX Financial Statements Announcement: Full Yearly Results
3/8/2019 REPL::Financial Statements and Related Announcement::Full Yearly Results REPL::FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT::FULL YEARLY RESULTS Issuer & Securities Issuer/ Manager JARDINE CYCLE & CARRIAGE LIMITED Securities JARDINE CYCLE & CARRIAGE LTD - SG1B51001017 - C07 Stapled Securit
Slide 2: Related Announcements
3/8/2019 REPL::Financial Statements and Related Announcement::Full Yearly Results Related Announcements Related Announcements 27/02/2019 17:34:18 https://links.sgx.com/1.0.0/corporate-announcements/OJ24QJSPO3QSNWWS/cd803543ae471ac8a13cb2d04f9ca7c6b7009d15a5efb6cb68cd16e3f2… 2/2
Slide 3: FY 2018 Results
YEARS OF SOUTHEAST ASIAN PARTNERSHIPS FY 2018 Results Disclaimer: Jardine Cycle & Carriage accepts no liability whatsoever with respect to the use of this document or its contents.
Slide 4: Long-term, strategic business interests in Southeast Asia
Long-term, strategic business interests in Southeast Asia JARDINE CYCLE & CARRIAGE
Slide 5: Presence in Southeast Asia
Presence in Southeast Asia MYANMAR LEGEND VIETNAM Our Presence Astra International Direct Motor Interests SINGAPORE: THAILAND • Cycle & Carriage Singapore MALAYSIA: • Cycle & Carriage Bintang MYANMAR: • Cycle & Carriage Myanmar INDONESIA: • Tunas Ridean VIETNAM: MALAYSIA • Truong Hai Auto Corporatio
Slide 6: Group Structure
Group Structure ASTRA INTERNATIONAL DIRECT MOTOR INTERESTS OTHER STRATEGIC INTERESTS 50.1% Astra International 100% Cycle & Carriage 25.5% Siam City Cement Singapore Refrigeration Electrical 59.1% Cycle & Carriage Bintang 24.9% Engineering Corporation Cycle & Carriage 60% 10.6% Vinamilk Myanmar 46.2
Slide 7: Financial Highlights
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Slide 8: Jardine Cycle & Carriage 2018 snapshot
Jardine Cycle & Carriage Founded in 1899 75% Employs over held by 250,000 people Jardine Strategic Listed on SGX STI constituent 2018 snapshot: Combined gross revenue* Revenue Underlying profit Market cap US$40 billion US$19 billion US$858 million US$10 billion + * Includes 100% of revenue from asso
Slide 9: Financial Highlights
Financial Highlights • Revenue and underlying earnings per share up 10% and 12%, respectively • Strong performances across all businesses • Underlying profit contributions: – Astra’s contribution to Group’s underlying profit up 15% – Direct Motor Interests’ contribution to Group’s underlying profit
Slide 10: Financial Highlights – Profit & Loss Account
Financial Highlights – Profit & Loss Account Revenue and underlying profit up 10% and 12%, respectively Underlying Revenue Underlying Profit and Revenue from 2000 to present (US$'m) Profit (US$'m) 1,200 30,000 1,000 25,000 800 20,000 600 15,000 400 10,000 200 5,000 0 0 (200) -5,000 Astra Non Astra /
Slide 11: Financial Highlights – Profit & Loss Account
Financial Highlights – Profit & Loss Account Revenue and underlying profit up 10% and 12%, respectively 2018 2017 US$m US$m Change Revenue 18,992 17,337 10% Underlying profit 858 770 12% Non-trading items (438) 169 nm Net profit 420 939 -55% *The 2017 accounts have been restated due to the adoption
Slide 12: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet Net debt up largely due to investments by Astra in its road toll business, a gold mining concession, GOJEK and other capital expenditure Dec-18 Dec-17 US$m US$m Change Shareholders' funds 6,148 6,408 -4% Total equity 13,493 13,398 1% Net debt (5,482) (4,219) 30%
Slide 13: Financial Highlights – Other
Financial Highlights – Other Underlying EPS up 12%, dividend per share at US¢87 Restated 2018 2017 US¢ US¢ Change Underlying EPS 217 195 12% EPS 106 238 -55% Dividend per share 87 86 1% 11
Slide 14: Contribution by Business
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Slide 15: Underlying Profit – By Business
Underlying Profit – By Business Growth in underlying profit driven by higher contributions across all businesses Restated 2018 2017 US$m US$m Change Astra 718.7 622.3 15% Direct motor interests 144.6 121.3 19% Other strategic interests 71.1 34.3 107% Corporate costs (76.4) (8.4) nm Underlying profit
Slide 16: Astra International
Majority shareholder of leading Indonesian diversified group ASTRA INTERNATIONAL
Slide 17: Astra – Diversified Business Group in Indonesia
Astra – Diversified Business Group in Indonesia 7 core businesses Automotive Financial Services Heavy equipment, mining, construction & energy Market share Total amount financed from Astra’s Largest coal mining contractor in 51% Cars | 75% Motorcycles consumer finance businesses Indonesia US$5.6 bil
Slide 18: Underlying Profit – Astra
Underlying Profit – Astra Key growth contributors include heavy equipment, mining, construction and energy, and financial services Restated 2018 2017 US$m US$m Change Automotive 272 284 -4% Financial services 171 125 38% Heavy equipment, mining, construction and energy 231 168 38% Agribusiness 43 60
Slide 19: Astra – FY2018 Review
Astra – FY2018 Review 15% increase in net profit • Net profit equivalent to US$1.5bn, 15% higher in local currency terms • US$719m contribution to the Group’s underlying profit, up 15% • Wholesale 4W market grew 7% at 1.2m units. Astra’s wholesale sales 1% higher at 582,000 units (market share down
Slide 20: Astra – FY2018 Review
Astra – FY2018 Review United Tractors net income up by 50% • Amount financed through the heavy equipment-focused finance operations decreased 12% to US$363m, mainly due to reduced lending to the small and medium-sized segment • Permata Bank’s net income at US$63m, compared to US$56m in 2017, mainly
Slide 21: Astra – FY2018 Review
Astra – FY2018 Review Improved earnings from infrastructure and logistics • Astra Agro Lestari’s net income down 27% at US$101m, primarily due to lower crude palm oil prices. Average CPO prices 12% lower at Rp7,275/kg, while sales of CPO and its derivatives were 30% higher at 2.3m tonnes • Infrastru
Slide 22: Direct Motor Interests
Established automotive presence across Southeast Asia DIRECT MOTOR INTERESTS
Slide 23: Direct Motor Interests
Direct Motor Interests Singapore Bintang Myanmar Singapore | Malaysia | Myanmar Leading diverse automotive group Leading MB dealer group in Malaysia 6 Facilities | represents 3 brands 6 Facilities | represents 8 brands 13 Facilities | represents 2 brands 17% Passenger Cars market share Listed on Bur
Slide 24: Underlying Profit – Direct Motor Interests
Underlying Profit – Direct Motor Interests Overall underlying profit across Direct Motor Interests up 19% Restated 2018 2017 US$m US$m Change Singapore (Cycle & Carriage Singapore) 61.6 57.0 8% Malaysia (Cycle & Carriage Bintang) 1.9 (1.3) nm Myanmar (Cycle & Carriage Myanmar) (4.9) (2.5) 96% Indone
Slide 25: Cycle & Carriage Singapore – FY2018 Review
Cycle & Carriage Singapore – FY2018 Review Improved margins on passenger cars • Contribution of US$62m, up 8% - Margins improved on passenger cars • PC market down 13% to 80,300 units • PC sales down 7% at 13,300 units, market share rose from 16% to 17% - Mercedes-Benz unit sales down 6% - Kia unit
Slide 26: Cycle & Carriage Bintang – FY2018 Review
Cycle & Carriage Bintang – FY2018 Review 9% increase in unit sales • Contributed a profit of US$2m, compared to a loss of US$1m in the prior year • 9% increase in unit sales as the company benefited from the zero rate of GST from June to August 24
Slide 27: Cycle & Carriage Myanmar – FY2018 Review
Cycle & Carriage Myanmar – FY2018 Review • Contributed a higher loss of US$5m (2017: US$3m loss) mainly due to higher capex depreciation and stock provisions, partly offset by increased sales volume 25
Slide 28: Tunas Ridean – FY2018 Review
Tunas Ridean – FY2018 Review Higher contributions from automotive, consumer finance and rental operations • Contribution of US$18m up 17%, due to improved performances from its automotive, consumer finance and rental operations • 4W sales down 6% to 48,300 units, but margins improved due to less dis
Slide 29: Truong Hai Auto Corporation (Thaco) – FY2018 Review
Truong Hai Auto Corporation (Thaco) – FY2018 Review Overall unit sales up 11% to 97,100 units • Contribution of US$73m up 29%, due mainly to higher unit sales and improved margins • Vehicle market grew 9% to 362,000 units as tariffs on CBUs were eliminated, following the full implementation of the A
Slide 30: Formation of Jardine International Motors (JIM)
Formation of Jardine International Motors (JIM) • Single point of accountability for Jardine Matheson Group automotive interests (Southeast Asia + Greater China) - Leverage scale, maximise partnerships, consolidate expertise, share innovation, optimise transformation initiatives • No change in share
Slide 31: Other Strategic Interests
Diversified interests supporting Southeast Asia’s growth OTHER STRATEGIC INTERESTS
Slide 32: Other Strategic Interests
OTHER STRATEGIC INTERESTS Siam City Cement REE Corp Vinamilk Listed on Thailand Stock Exchange Listed on Ho Chi Minh Stock Exchange Listed on Ho Chi Minh Stock Exchange > 25 million tonnes per annum of cement Engages in #1 dairy producer in Vietnam capacity M&E services > 250 products over 35 coun
Slide 33: Underlying Profit – Other Strategic Interests
Underlying Profit – Other Strategic Interests Substantial growth to US$71m driven by Vinamilk dividends • Siam City Cement’s contribution of US$20 million was significantly higher than the prior year, due to improved domestic performance and lower one-off expenses, partially offset by lower contribu
Slide 34: Outlook
Outlook “The Group achieved good overall results in 2018, but Astra is likely to face a number of macro-economic and commercial headwinds in 2019, while the Group’s Direct Motor Interests and Other Strategic Interests may also see slower growth.” Ben Keswick, Chairman 27th February 2019 32
Slide 35: Thank You
Wy ad Jardine Cycle & Carriage THANK YOU
Jardine Cycle & Carriage — FY2018 Earnings Presentation on 6ix