JC&C 2024 Half Year Financial Statements and Dividend Announcement

FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT::HALF YEARLY RESULTS

Issuer & Securities

Issuer/ Manager

JARDINE CYCLE & CARRIAGE LIMITED

Securities

JARDINE CYCLE & CARRIAGE LTD - SG1B51001017 - C07

Stapled Security

No

Announcement Details

Announcement Title

Financial Statements and Related Announcement

Date &Time of Broadcast

01-Aug-2024 17:17:24

Status

New

Announcement Sub Title

Half Yearly Results

Announcement Reference

SG240801OTHR3ZY5

Submitted By (Co./ Ind. Name)

Jeffery Tan Eng Heong

Designation

Company Secretary

Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format)

Please see attachment.

Additional Details

For Financial Period Ended

30/06/2024

Attachments

JCC_Jun 2024_Final.pdf

Total size =1067K MB

JARDINE CYCLE & CARRIAGE LIMITED

2024 HALF-YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

• Adopted new business segment reporting to reflect JC&C's strategic market focus
• Underlying profit 14% lower at US$500 million
• Interim dividend per share of US¢28, unchanged from 2023

"In the first half of 2024, the Group's businesses in Indonesia and Vietnam experienced softer consumer demand and lower commodity prices compared to previous high levels. Weaker domestic currencies in these countries also had an impact on the overall profit contribution in US dollar terms. Notwithstanding these current headwinds, to deliver attractive returns to our shareholders, JC&C has continued to actively take steps to strengthen future earnings through aligning strategies, capital allocation and leadership. We expect the performance of our market- leading businesses to be resilient for the rest of the year, and we remain confident that our portfolio can deliver sustainable long-term growth."

Ben Birks, Group Managing Director

Group Results

The exchange rate of US$1=S$1.36 (31st December 2023: US$1=S$1.32) was used for translating assets and liabilities at the balance sheet date, and

US$1=S$1.35 (30th June 2023: US$1=S$1.34) was used for translating the results for the period. The financial results for the six months ended 30th June 2024 and 30th June 2023 have been prepared in accordance with International Financial Reporting Standards and have not been audited or reviewed by the auditors.

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

measurement that enhances the understanding of the Group's underlying business performances.

• Included in 'non-trading items' are unrealised gains/losses arising from the revaluation of the Group's non-current investments.

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GROUP MANAGING DIRECTOR'S STATEMENT

OVERVIEW

Jardine Cycle & Carriage ("JC&C" or "the Group") has a high-quality portfolio that is invested in current and future market-leading businesses of Southeast Asia, in particular, the largest and fastest growing economies of Indonesia and Vietnam.

We aim to achieve sustainable long-term growth that outperforms Southeast Asia's GDP rates and to consistently deliver attractive shareholder returns. We do so by actively evolving and rebalancing our portfolio and strategically allocating capital to enhance current profits and grow future earnings through business development opportunities.

During the first half of 2024, we made good progress towards these strategic objectives.

• We succeeded in releasing a further US$25 million from within our portfolio through monetising non-core assets in Malaysia.
• We continued to allocate capital to our future market leaders and to new investment opportunities. JC&C applied to launch a Public Tender Offer for Refrigeration Electrical
  Engineering Corporation ("REE"), while through United Tractors, the Group invested US$81 million in PT Supreme Energy Rantau Dedap ("SERD"), which owns a geothermal project in Sumatera, Indonesia. These developments are in line with JC&C's long-term growth and sustainability objectives.
• A key role of the Group is to enable the future strategies of our portfolio companies through people and leadership. In Vietnam, the new finance appointments of Truong Hai Group
  Corporation ("THACO") and REE Corporation are talents from the wider Jardine Matheson Group.
• We maintained our interim dividend payout of US¢28 to our shareholders.

In line with these portfolio developments, JC&C reorganised its business segment reporting in 2024, to provide greater clarity and add emphasis to the Group's focus on the Indonesian and Vietnamese markets. The new group structure comprises three business pillars:

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For the first six months of 2024, JC&C recorded 14% lower profits than in the same period in 2023. The Group's businesses in Indonesia contributed US$513 million, a decrease of 9%, and Vietnam's contribution was 12% lower at US$30 million. JC&C's Regional Interests contributed US$25 million, down 13%.

Corporate costs totalled US$68 million, compared to US$41 million in the same period last year. The increase was mainly due to higher foreign exchange losses from the translation of foreign currency loans.

The Group's underlying profit attributable to shareholders decreased by 14% to US$500 million. After accounting for non-trading items of US$17 million, which mainly comprised unrealised fair value losses related to non-current investments, the Group's profit attributable to shareholders was US$483 million, compared to US$648 million in the same period last year.

The Group's consolidated net debt position, excluding the net borrowings from Astra's financial services subsidiaries, was US$543 million at the end of June 2024, compared to US$1,145 million at the end of 2023 mainly due to strong operating cashflow. Net debt within Astra's financial services subsidiaries increased from US$3.4 billion to US$3.5 billion. JC&C parent company's net debt reduced from US$1.3 billion at the end of 2023 to US$1.1 billion at the end of June 2024, following the receipt of enhanced dividends from Astra.

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GROUP REVIEW

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

The Group's Indonesian businesses contributed US$513 million to its underlying profit, down 9%.

(A) Astra

Astra contributed US$497 million to JC&C's underlying profit, 8% down from the same period last year, mainly due to weaker performances from its heavy equipment and mining operations, as well as the translation impact from a weaker foreign exchange rate. Assuming constant foreign exchange rates with the equivalent period last year, Astra's contribution would have been 2% lower. Under Indonesian accounting standards, Astra reported a net profit equivalent to US$1 billion, excluding the unrealised fair value losses arising from the revaluation of its GoTo and Hermina investments.

Automotive

Net income decreased by 3% to US$345 million, reflecting lower sales volumes in a softer automotive market.

• The wholesale car market decreased by 19% to 408,000 units in the first half. Astra's car sales were 17% lower at 232,000 units, and its market share increased from 55% to 57%.
• The wholesale market for motorcycles decreased slightly to 3.2 million units in the first half. Astra Honda motorcycle sales were 4% lower at 2.4 million units, with its market share decreasing from 80% to 77%.

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VIETNAM

JC&C's businesses in Vietnam contributed US$30 million to the Group's underlying profit, down 12%.

(A) THACO

THACO contributed US$15 million, 5% up compared to the previous year. The car market increased marginally as it continued to be impacted by weak consumer demand. THACO's unit sales, meanwhile, were up 10% to 36,600 units, improving its market share from 21% to 23%. Nonetheless, automotive profit declined due to lower margins, as a result of greater competitive pressure.

(B) REE Corporation

Based on its first-quarter results, REE's contribution of US$7 million was 39% lower than the previous year. This was mainly due to lower hydropower demand which led to lower earnings from the power generation business.

In July, JC&C applied to launch a public tender offer ("PTO") to acquire additional shares of REE. JC&C currently owns a 34.9% interest in REE, and a PTO is required to cross the 35.0% shareholding threshold. The application is pending regulatory approval.

(C) Vinamilk

JC&C's holding in Vinamilk produced a dividend income of US$8 million, compared to US$9 million in the previous year, due to the translation effect from a weaker foreign exchange rate.

REGIONAL INTERESTS

Regional Interests contributed US$25 million, 13% down compared to the same period last year.

(A) Cycle & Carriage

The contribution from Cycle & Carriage was 46% lower at US$9 million. In Singapore, new car sales were 16% higher at 3,174 units. However, its profit was impacted by higher leasing expenses, and a lower profit contribution from the used car operations of Republic Auto due to a 40% reduction in shareholding since October 2023. Profit from the Malaysia operations was also lower, as the business transitioned to an agency model at the start of the year.

(B) SCCC

The contribution from Siam City Cement was US$12 million, 38% higher than the previous year, as lower energy costs supported improved profits.

(C) TMC

The Group's investment in TMC produced a dividend income of US$4 million in the first half of 2024, compared to US$3 million in the same period last year.

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Corporate Costs

Corporate costs were US$68 million compared to US$41 million in the same period last year, as foreign exchange losses from the translation of foreign currency loans increased from US$7 million to US$28 million.

Dividend

The Board has declared an interim one-tiertax-exempt dividend of US¢28 per share (2023: US¢28 per share) for the half-year ended 30th June 2024.

OUTLOOK

"To deliver attractive returns to our shareholders, JC&C has continued to actively take steps to strengthen future earnings through aligning strategies, capital allocation and leadership. We expect the performance of our market-leading businesses to be resilient for the rest of the year, and we remain confident that our portfolio can deliver sustainable long-term growth."

Ben Birks

Group Managing Director

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CORPORATE PROFILE

Jardine Cycle & Carriage ("JC&C" or "the Group") is an investment holding company with a strategic focus on the fast-growing economies of Indonesia and Vietnam. Our portfolio comprises market- leading businesses across different sectors in these countries, alongside further interests in other regional markets.

Indonesia:

• Astra (50.1%-owned) is an excellent proxy to Indonesia, with leadership positions in automotive, financial services, heavy equipment, mining, construction & energy, agribusiness, infrastructure, IT and property.
• Tunas Ridean (49.9%-owned), one of the largest automotive dealerships in Indonesia.

Vietnam:

• Truong Hai Group Corporation (26.6%-owned), Vietnam's automotive market leader and largest private business group in the country, has significant interests in agriculture, real estate, logistics, infrastructure construction, and retail.
• REE Corporation (34.9%-owned), the first public listed company in Vietnam participating in power and utilities including renewable energy as well as property development and office leasing, and mechanical & electrical engineering.
• Vinamilk (10.6%-owned), the leading dairy producer in Vietnam.

Regional Interests:

• Cycle & Carriage, a leading automotive dealership group in Southeast Asia with an extensive network in Singapore (100%-owned), Malaysia (97.1%-owned) and Myanmar (60%-owned).
• Siam City Cement (25.5%-owned), Thailand's second largest cement producer with regional operations in Vietnam, Sri Lanka, Cambodia and Bangladesh.
• Toyota Motor Corporation (0.09%-owned), a leading multinational automotive manufacturer and the best-selling automotive brand in Indonesia.

Headquartered in Singapore, JC&C is listed on the Mainboard of the Singapore Exchange and a constituent of the Straits Times Index. JC&C is 83%-owned by the Jardine Matheson Group.

For more information on JC&C and our businesses, visit www.jcclgroup.com.

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

The directors confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the accompanying unaudited interim financial results for the six months ended 30th June 2024 to be false or misleading in any material aspect.

On behalf of the Board of Directors

Ben Birks

Director

Steven Phan

Director

1st August 2024

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