TIDMJDS TIDMJAR
RNS Number : 7969X
Jardine Strategic Hldgs Ltd
27 February 2017
To: Business Editor 27th February 2017
For immediate release
PT Astra International Tbk
2016 Full Year Financial Statements
The following announcement was issued today by the Company's
75%-owned subsidiary, Jardine Cycle & Carriage Limited, which
holds 50.1% of PT Astra International Tbk.
For further information, please contact:
Jardine Matheson Limited
Neil M McNamara (852) 2843 8227
Brunswick Group Limited
Karin Wong (852) 3512 5077
27th February 2017
PT ASTRA INTERNATIONAL TBK
2016 FULL YEAR FINANCIAL STATEMENTS
Highlights
-- Net earnings per share up 5% at Rp374
-- Increased market shares for cars and motorcycles
-- Heavy equipment and mining result up due to non-recurrence of impairment charge
-- Agribusiness benefited from improved prices
-- Significant increase in loan-loss provisions by Permata Bank
"The Group's underlying trading results for the year were
satisfactory with steady progress seen in a number of areas. The
outlook for 2017 appears positive with improving economic
conditions and the benefit of higher coal prices."
Prijono Sugiarto
President Director
Group Results
For the year ended 31st December
----------------------------- ----------------------------------------------
2016 2015 Change
Rp bn Rp bn %
----------------------------- --------------- -------------------- -------
Net revenue 181,084 184,196 (2)
----------------------------- --------------- -------------------- -------
Net income* 15,156 14,464 5
----------------------------- --------------- -------------------- -------
Rp Rp
----------------------------- --------------- -------------------- -------
Net earnings per share 374 357 5
----------------------------- --------------- -------------------- -------
As at 31st As at 31st December Change
December 2016 2015 %
Rp bn Rp bn
----------------------------- --------------- -------------------- -------
Shareholders' funds** 111,951 102,043 10
----------------------------- --------------- -------------------- -------
Rp Rp
----------------------------- --------------- -------------------- -------
Net asset value per share** 2,765 2,521 10
----------------------------- --------------- -------------------- -------
* Net income is profit attributable to owners of the parent,
i.e. Astra International shareholders.
** Shareholders' funds and net asset value per share are based
on equity attributable to owners of the parent.
The financial results for the year ended 31st December 2016 and
2015 as well as the financial position as at 31st December 2016 and
2015 have been prepared in accordance with Indonesian Financial
Accounting Standards and are audited in accordance with the
auditing standards established by the Indonesian Institute of
Certified Public Accountants.
PRESIDENT DIRECTOR'S STATEMENT
Overview
During 2016 the Group's automotive businesses performed well,
achieving good growth in market share for both cars and
motorcycles. The trading performance of heavy equipment and mining
was adversely impacted by low coal prices for most of the year,
however the situation improved in the final quarter. Agribusiness
benefited from an improvement in crude palm oil prices, although
the impact of poor weather conditions limited production and sales
in the first half. While most of the Group's financial services
businesses performed well, Permata Bank recorded a significant
increase in loan loss provisions leading to a Rp3.0 trillion
reduction in its contribution.
Performance
The Group's consolidated net revenue in 2016 was down 2% at
Rp181.1 trillion, with lower revenue within heavy equipment and
mining coupled with a reduced revenue contribution from Astra's
Toyota sales operations following the introduction of a two-tiered
distribution model at the beginning of the year.
The Group's net income for the year was 5% higher at Rp15.2
trillion, with improved results in automotive, heavy equipment and
mining, agribusiness, and infrastructure and logistics being
partially offset by lower contributions from financial services,
information technology and property.
The net asset value per share of Rp2,765 at 31st December 2016
was 10% higher than at the end of 2015.
Net cash, excluding the Group's financial services subsidiaries,
was Rp6.2 trillion at the end of 2016, compared to net cash of
Rp1.0 trillion at the end of 2015. The Group's financial services
subsidiaries had net debt of Rp47.7 trillion, compared to Rp44.6
trillion at the end of 2015.
A final dividend of Rp113 per share (2015: Rp113 per share) will
be proposed at the Annual General Meeting to be held in April 2017.
The proposed final dividend together with the interim dividend of
Rp55 per share (2015: Rp64 per share) will bring the total dividend
for the year to Rp168 per share (2015: Rp177 per share),
representing a dividend payout ratio of 45% (2015: 50%, or 45%
excluding the profit impact of the impairment charge).
Business Activities
Net income attributable to Astra International's shareholders by
business segment for the year was as follows:
Net Income Attributable to Astra International
------------------------------ ---------------------------------------------------
For the year ended 31st December
------------------------------ ---------------------------------------------------
2016 2015 Change
Rp bn Rp bn %
------------------------------ ---------------- ---------------- ---------------
Automotive 9,166 7,464 23
------------------------------ ---------------- ---------------- ---------------
Financial Services 789 3,555 (78)
------------------------------ ---------------- ---------------- ---------------
Heavy Equipment and Mining 3,032 2,342 30
------------------------------ ---------------- ---------------- ---------------
Agribusiness 1,599 493 224
------------------------------ ---------------- ---------------- ---------------
Infrastructure and Logistics 263 195 35
------------------------------ ---------------- ---------------- ---------------
Information Technology 196 204 (4)
------------------------------ ---------------- ---------------- ---------------
Property 111 211 (47)
------------------------------ ---------------- ---------------- ---------------
Attributable Net Income 15,156 14,464 5
------------------------------ ---------------- ---------------- ---------------
Automotive
Net income from the Group's automotive businesses increased by
23% to Rp9.2 trillion, largely due to successful new model
indtroductions and their positive effect on margins.
The wholesale market for cars increased by 5% to 1.1 million
units. Astra's car sales were 16% higher at 591,000 units,
resulting in an increase in market share from 50% to 56%. The Group
launched 14 new models and nine revamped models during the
year.
The wholesale market for motorcycles decreased by 8% to 5.9
million units. Astra Honda Motor's domestic sales were 2% lower at
4.4 million units, although its market share increased from 69% to
74%, supported by the launch of seven new models and eight revamped
models in 2016.
Net income at Astra Otoparts, the Group's component business,
increased 31% to Rp418 billion, with higher revenues from its OEM
and aftermarket segments combined with higher earnings
contributions from its associated companies.
Financial Services
Net income from the Group's financial services businesses in
2016 declined 78% to Rp789 billion. Improved contributions from
Federal International Finance, Toyota Astra Financial Services and
Asuransi Astra Buana, were more than offset by declines in the
Group's other financial services businesses, mainly Permata Bank
which recorded a significant increase in loan-loss provisions,
primarily in its commercial loan book.
The consumer finance businesses saw a 21% increase in the
aggregate amount financed, which rose to Rp74.0 trillion, including
balances financed through joint bank financing without recourse.
The car-focused Astra Sedaya Finance reported net income 4% lower
at Rp934 billion following a reduction in used car financing,
whereas Toyota Astra Financial Services recorded net income up 15%
at Rp351 billion. Motorcycle-focused Federal International
Finance's net income was up 20% at Rp1.8 trillion, benefiting from
loan product diversification.
The aggregate amount financed through the Group's heavy
equipment-focused finance operations increased by 20% to Rp4.7
trillion. Surya Artha Nusantara Finance, which specialises in small
and medium heavy equipment financing, reported net income 26% lower
at Rp81 billion.
Astra's 44.6%-held joint venture, Permata Bank, reported a net
loss of Rp6.5 trillion compared with net income of Rp247 billion in
2015. The loss was due to a significant increase in loan-loss
provisions amounting to Rp12.3 trillion, which saw the bank's gross
non-performing loan ratio rise from 2.7% at the end of 2015 to 8.8%
at the end of 2016, while its net non-performing loan ratio rose
from 1.4% to 2.2%. In order to further strengthen its capital base,
a Rp3.0 trillion rights issue is expected to be completed in the
first half of 2017, of which Rp1.5 trillion has already been
injected as capital advance by Astra and Standard Chartered Bank,
its two major shareholders. Combined with the Rp5.5 trillion rights
issue completed in June 2016, this results in Rp8.5 trillion of new
capital.
Net Income at Asuransi Astra Buana, the Group's general
insurance company, was slightly higher at Rp923 billion, primarily
due to increased investment income.
During the year, the Group's life insurance joint venture, Astra
Aviva Life, acquired more than 158,000 individual life customers
and 133,000 participants for its corporate employee benefits
programmes, bringing the respective totals to 228,000 and 596,000
at the end of 2016.
Heavy Equipment and Mining
The net income contribution from heavy equipment and mining
businesses to the Group increased by 30% to Rp3.0 trillion in 2016.
Most of the activities were adversely impacted by low coal prices
for a large part of the year, although the situation improved in
the final quarter.
United Tractors, which is 59.5%-owned, reported net income 30%
higher at Rp5.0 trillion due to the absence of an impairment charge
on the carrying value of its coal mining properties which affected
its 2015 result. Excluding the impact of this impairment charge,
the 2016 net income would have been 22% lower than the prior year.
United Tractors recorded lower mining contracting revenue, caused
largely by relatively weak coal prices for much of the year. It
also recognised a foreign exchange translation loss on its US
dollar monetary assets.
In its construction machinery business, Komatsu heavy equipment
sales were up 3% to 2,181 units, while parts and service revenues
declined. The mining contracting operations of Pamapersada
Nusantara recorded coal production little changed at 109 million
tonnes, while overburden removal was 8% lower at 702 million bank
cubic metres. United Tractors' mining subsidiaries reported 48%
higher coal sales at 6.8 million tonnes.
General contractor Acset Indonusa, a 50.1% subsidiary of United
Tractors, reported net income up 63% at Rp68 billion. Acset secured
new contracts worth Rp3.8 trillion during the year, compared with
Rp3.1 trillion in 2015. To support its business growth, Acset
completed a Rp600 billion rights issue in June 2016.
Agribusiness
Net income from the Group's agribusiness division increased
significantly to Rp1.6 trillion from Rp493 billion.
Astra Agro Lestari, which is 79.7%-owned, reported net income of
Rp2.0 trillion, up from Rp619 billion, due to improved revenue from
higher crude palm oil prices and the benefit of the stronger rupiah
on the translation of its US dollar monetary liabilities. Crude
palm oil sales were 3% lower at 1.0 million tonnes, while average
crude palm oil prices were 11% higher at Rp7,768/kg. Olein sales
were 22% lower at 320,000 tonnes. To strengthen its balance sheet,
Astra Agro Lestari completed a Rp4.0 trillion rights issue in June
2016.
Infrastructure and Logistics
Higher earnings from the Group's infrastructure and logistics
businesses led to a 35% increase in net income to Rp263
billion.
The 72km Tangerang-Merak toll road, operated by 79.3%-owned
Marga Mandalasakti, saw traffic volumes increase by 3% to 48
million vehicles. Construction continues at the wholly-owned 41km
Jombang-Mojokerto toll road, where 20km is already operational. At
the 73km Semarang-Solo toll road, in which the Group has a 25%
interest, 23km is now in operation.
In January 2017, the Group completed the acquisition of an
initial 40% interest in PT Baskhara Utama Sedaya, which owns 45% of
the operator of the fully operational 116km Cikopo-Palimanan toll
road, and has subsequently conditionally agreed to acquire the
remaining 60% interest.
Along with its 40% stake in the 11km Kunciran-Serpong toll road
and a 25% stake in the 30km Serpong-Balaraja toll road, both of
which are greenfield, the Group's total interest in toll roads
amounts to 343km.
PAM Lyonnaise Jaya, which operates the western Jakarta water
utility system, experienced a 1% increase in sales volume to 162
million cubic metres.
Serasi Autoraya's net income increased by 96% to Rp100 billion,
due to higher net margins in its car leasing and rental, used
vehicle sales and logistics businesses, despite a 3% decline in
contracted vehicles in its car leasing and rental business.
Information Technology
Net income from the Group's information technology division
decreased by 4% to Rp196 billion.
Astra Graphia, which is 76.9%-owned, reported a 4% decline in
net income to Rp255 billion, despite an increase in revenue mainly
due to lower net margins.
Property
Net income from the Group's new property division at Rp111
billion was lower than the Rp211 billion achieved in 2015, mainly
due to a lower revaluation gain on the Group's Grade A office tower
development, Menara Astra.
Construction continues to progress at the 93%-sold Anandamaya
Residences, the Group's 60%-owned luxury residential development in
Jakarta's Central Business District which, together with the
adjacent Menara Astra, are on schedule for completion in 2018.
In October, PT Astra Land Indonesia, owned 50% by Astra and 50%
by Hongkong Land, signed an agreement with a subsidiary of PT
Modernland Realty Tbk to acquire and jointly develop a 67-hectare
site in Cakung, East Jakarta.
Prospects
The Group's underlying trading results for the year were
satisfactory with steady progress seen in a number of areas. The
outlook for 2017 appears positive with improving economic
conditions and the benefit of higher coal prices.
Prijono Sugiarto
President Director
27th February 2017
- end -
For further information, please contact:
PT Astra International Tbk
Pongki Pamungkas, Chief of Corporate Communication, Social
Responsibility & Security
Tel: + 62 - 21 - 6530 4956
This information is provided by RNS
The company news service from the London Stock Exchange
END
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