TIDMJDS TIDMJAR
RNS Number : 4718U
Jardine Strategic Hldgs Ltd
29 July 2020
To: Business Editor
29th July 2020
For immediate release
PT Astra International Tbk
2020 First Half 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
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
Ben Fry (65) 9017 9886
29th July 2020
PT ASTRA INTERNATIONAL TBK (the Company or Astra)
20 20 FIRST HALF FINANCIAL STATEMENTS
Highlights
-- Net earnings per share down 44% (before gain on sale of investment in Permata Bank)
-- Car sales down 45% and motorcycle sales down 40%
-- Lower coal prices impact heavy equipment sales and mining contracting volumes
-- Agribusiness benefits from higher crude palm oil prices
-- Interest in Permata Bank sold resulting in proceeds of Rp16.8 trillion
-- Strong balance sheet
"The COVID-19 pandemic has had a significant adverse impact on
Astra's businesses and its financial results, especially in the
second quarter. The pandemic containment measures implemented
across most of the country have caused severe disruption to the
Group's operations, including the temporary closure of its
automotive manufacturing and distribution operations, and there was
also a significant rise in the number of restructured loans in its
financial services businesses. In addition, depressed coal prices
led to a deterioration in its heavy equipment, mining contracting
and mining businesses. The pandemic, and the measures taken to
contain it, are expected to continue to adversely affect results
for the rest of this year.
During this challenging period of business disruption and
uncertainty, the Group has put a particular focus on reducing its
operational and capital expenditure, managing its working capital
and ensuring liquidity. The Group's balance sheet remains strong,
with Rp38.6 trillion of available committed credit facilities.
Ensuring the safety and wellbeing of employees during the
pandemic is our top priority and the Group has adopted a range of
health and safety measures. The strength of the Group has always
been its people, so we are grateful to our employees across the
Group who have responded with professionalism and dedication in the
face of these unprecedented challenges."
Djony Bunarto Tjondro
President Director
Astra Group Results
For the period ended 30th June
20 20 2019 Change
Rp bn Rp bn %
---------------- --------------------- -------
Net revenue 89,795 116,182 ( 23 )
---------------- --------------------- -------
Net income (before
gain on sale of investment
in Permata Bank) 5,497 9,803 (44)
---------------- --------------------- -------
Net income 11,378 9,803 16
---------------- --------------------- -------
Rp Rp
---------------- --------------------- -------
Net earnings per share
(before gain on sale
of investment in Permata
Bank) 137 242 (44)
---------------- --------------------- -------
Net earnings per share 281 242 16
---------------- --------------------- -------
As at 30th June As at 31st D ecember Change
2020 2019 %
Rp bn Rp bn
---------------- --------------------- -------
Shareholders' funds 152,759 147,847 3
---------------- --------------------- -------
Rp Rp
---------------- --------------------- -------
Net asset value per
share 3, 773 3,652 3
---------------- --------------------- -------
The financial results for the six months ended 30th June 2020
and 2019 as well as the financial position as at 30th June 2020
have been prepared in accordance with Indonesian Financial
Accounting Standards and are un audited . The financial position as
at 31st December 20 1 9 has been prepared in accordance with
Indonesian Financial Accounting Standards and audited in accordance
with the auditing standards established by the Indonesian Institute
of Certified Public Accountants.
PRESIDENT DIRECTOR'S STATEMENT
Performance
The Group's consolidated net revenue in the first half of 2020
was Rp89.8 trillion, a decrease of 2 3% from comparable period last
year. Net income was Rp 1 1.4 trillion, 16% higher than the first
half of 2019, including the gain from the sale of its stake in
Permata Bank. Excluding this one-off gain, the G roup's net income
would have decreased by 44 % to Rp 5.5 t rillion, primarily due to
weaker performances by its automotive, heavy equipment and mining,
and financial services divisions , as a result of the impact of the
COVID-19 pandemic and related containment measures .
The net asset value per share at 30th June 2020 was Rp 3, 773,
3% higher than the net asset value per share at 31st December
2019.
Net cash, excluding the Group's financial services subsidiaries,
was Rp1.4 trillion at 30 th June 2020, compared with net debt of Rp
22.2 trillion at the end of 2019, following the receipt of proceeds
from the sale of the stake in Permata Bank in May. The net debt of
the Group's financial services subsidiaries increased from
Rp45.8
trillion at the end of 2019 to Rp 4 6 . 4 trillion at 30 th June 2020.
In each of the Group's businesses, debt levels and liquidity
positions are being carefully monitored and steps are being taken
to mitigate both operational and financial risks. A range of
actions are also being taken to manage costs and preserve cash,
including reducing capital expenditure and managing working
capital.
Business Activities
In the second quarter of 2020, the Group's operations have
experienced significant disruption due to the COVID-19 pandemic and
related containment measures. These included the temporary closures
of corporate offices, manufacturing facilities and automotive
dealerships. Net income attributable to shareholders by business
segment was as follows:
Net Income Attributable to Astra
International
For the period ended 30th June
-------------------------------------
20 20 201 9 Change
Rp bn Rp bn %
-------------- ---------- ---------
Automotive 716 3,458 (79)
-------------- ---------- ---------
Financial Services 2, 102 2,819 (2 5 )
-------------- ---------- ---------
Heavy Equipment, Mining, Construction
and Energy 2, 368 3,332 ( 29 )
-------------- ---------- ---------
Agribusiness 31 2 35 791
-------------- ---------- ---------
Infrastructure and Logistics ( 88 ) 83 N/A
-------------- ---------- ---------
Information Technology 16 44 ( 64 )
-------------- ---------- ---------
Property 71 32 122
-------------- ---------- ---------
Attributable net income (before
gain on sale of investment in
Permata Bank) 5,497 9,803 (44)
-------------- ---------- ---------
Gain on sale of investment in 5,881 - N/A
Permata Bank
-------------- ---------- ---------
Attributable Net Income 1 1 , 378 9,803 16
-------------- ---------- ---------
Automotive
Net income from the Group's automotive division decreased by 79%
to Rp716 billion, mainly due to a significant
drop in sales volume in the second quarter . Key points were as follows:
-- The wholesale market for cars declined by 46% to 2 61 ,000
units in the first half of 2020 (source: Gaikindo). Astra's car
sales were 4 5% lower at 1 39,500 units with market share
maintained at 53%. In the second quarter of 2020, Astra's car sales
declined by 92%, compared with the first quarter. 6 new models and
10 revamped models were launched in the first half of 2020.
-- The wholesale market for motorcycles declined by 42% to 1.9
million units in the first half of 2020 (source: Ministry of
Industry). Astra Honda Motor's sales decreased by 4 0% to 1. 5
million units with an increase in market share from 75% to 77%. In
the second quarter of 2020, Astra's motorcycle sales declined by
80%, compared with the first quarter. 3 new models and 6 revamped
models were launched in the first half of 2020.
-- The Group's 80%-owned components business, Astra Otoparts,
reported a net loss of Rp296 billion compared to a net profit of
Rp246 billion in the equivalent period last year , mainly due to
lower revenues from the OEM (original equipment manufacturer) and
replacement market segments.
Financial Services
Net income from the Group's financial services division de
crease d by 2 5% to Rp 2.1 trillion in the period, primarily due to
increased provision s to cover higher non-performing loan losses in
the consumer and heavy equipment-focused finance businesses. Key
points were as follows:
-- The Group's consumer finance businesses saw a 1 6% de crease
in amounts financed to Rp 3 5.3 trillion. The net income
contribution from Astra's car-focused finance companies de creased
by 24 % to Rp 5 45 billion, while the net income contribution from
its motorcycle-focused business, Federal International Finance, de
creased by 2 5% to Rp 9 18 billion. The decrease in both were due
to higher loan loss provisioning, as non-performing loans
increased.
-- Astra's heavy equipment-focused finance operations saw a 1 4%
de crease in amounts financed to Rp 1.8 trillion. The net income
contribution from this segment decreased by 30% to Rp35
billion.
-- General insurance company Asuransi Astra Buana reported a 4 %
decrease in net income to Rp 52 1 billion, caused by lower
underwriting income. The Group's life insurance joint venture,
Astra Aviva Life, acquired more than 781,000 new individual life
customers and 57,000 new participants for its corporate employee
benefits programme in the period.
-- In March 2020, the Group signed a conditional agreement for
the purchase of Aviva's stake in the Astra Aviva Life joint
venture.
-- In May 2020, the Group completed the sale of its 44.56% stake
in Permata Bank, for a net consideration of Rp16.8 trillion.
Heavy Equipment, Mining, Construction and Energy
Net income from Astra's heavy equipment, mining, construction
and energy division decreased by 29% to Rp 2. 4 trillion, mainly
due to lower heavy equipment sales and mining contracting volume
caused by weaker coal
prices. Key points were as follows:
-- 59.5%-owned United Tractors reported a 28% de crease in net income to Rp4.1 trillion.
-- Komatsu heavy equipment sales fell by 56 % to 8 53 units,
while parts and service revenues were also lower.
-- Mining contractor Pamapersada Nusantara recorded 1 0% lower
overburden removal volume at 4 20 million
bank cubic metres and 8% lower coal production at 5 6 million tonnes.
-- United Tractors' coal mining subsidiaries achieved 14 %
higher coal sales at 5.6 million tonnes, including 8 69 ,000 tonnes
of coking coal, but their performance was affected by lower coal
prices.
-- Agincourt Resources, 95%-owned by United Tractors, reported 4
% lower gold sales at 1 86,000 oz .
-- General contractor Acset Indonusa, 50.1%-owned by United
Tractors, reported a 3 8 % lower net loss of Rp 25 2 billion ,
mainly due to reduced funding costs following the collection of
amounts due in respect of the Jakarta-Cikampek elevated toll road
project.
Agribusiness
Net income from the Group's agribusiness division was Rp 3 12
billion, significantly higher compared to the first half of 2019,
due to higher crude palm oil prices. Key points were as
follows:
-- The net income of 79.7%-owned Astra Agro Lestari increased
from Rp44 billion to Rp 39 2 billion, primarily due to higher crude
palm oil prices, especially in the first quarter of 2020, although
prices declined in the second quarter.
-- Average crude palm oil prices rose by 2 6 % to Rp 8, 109/k g
compared with the equivalent period last year.
-- Crude palm oil and derivatives sales fell by 1 3 % to 1,030,000 tonnes.
Infras tru cture and Logistics
Astra's infrastru c ture and logistics division reported a net
loss of Rp 88 billion, compared with a net profit of Rp83 billion
in the first half of 2019, mainly due to lower toll road revenues.
Key points were as follows:
-- The Group has interests in 350km of operational toll roads
along the Trans-Java network and in the Jakarta Outer Ring
Road.
-- There was 18% lower traffic volume in the Group's toll road concessions.
-- Serasi Autoraya's net income decreased by 62 % to Rp 34
billion, mainly due t o lower operating margin, despite 3% higher
vehicle s under contract at 22,900 units and 3% higher used car
sales at 15,300 units .
Information Technology
Net income from Astra's information technology division was 64 %
lower at Rp16 billion, primarily due to lower revenue s in the
document solution and office service businesses of 76.9%- owned
Astra Graphia.
Property
Net income from the Group's property division increased from Rp
32 billion to Rp 71 billion, mainly due to higher occupancy at
Menara Astra and earnings recognised from its development project,
Asya Residences.
People
Mr. Prijono Sugiarto was appointed as President Commissioner on
16th June 2020. The Company would like to express its gratitude to
Mr. Prijono for his contributions as President Director since
2010.
Prospects
The COVID-19 pandemic has had a significant adverse impact on
Astra's businesses and its financial results, especially in the
second quarter. The pandemic containment measures implemented
across most of the country have caused severe disruption to the
Group's operations, including the temporary closure of its
automotive manufacturing and distribution operations, and there was
also a significant rise in the number of restructured loans in its
financial services businesses. In addition, depressed coal prices
led to a deterioration in the heavy equipment, mining contracting,
and mining businesses. The pandemic and the measures taken to
contain it are expected to continue to adversely affect results for
the rest of this year.
Djony Bunarto Tjondro
President Director
29th July 2020
For further information, please contact:
PT Astra International Tbk
Riza Deliansyah, Chief of Corporate Affairs
Tel: +62 - 21 - 5084 3888
-end-
About Astra
PT Astra International Tbk was established in 1957 in Jakarta as
a general trading company under the name Astra International Inc.
In 1990, for the purpose of the company's initial public offering
(IPO), the name of the company changed to PT Astra International
Tbk, followed by listing its shares on the Indonesia Stock Exchange
under the ticker code ASII.
Astra has developed its business by implementing a business
model based on synergies and diversification within seven business
segments, consisting of: 1) Automotive, 2) Financial Services, 3)
Heavy Equipment, Mining, Construction & Energy, 4)
Agribusiness, 5) Infrastructure and Logistics, 6) Information
Technology and 7) Property.
Astra conducts business operations in all parts of Indonesia
under the management of more than 235 subsidiaries, joint ventures
and associates companies, and was supported by more than 194,000
employees, as of June 2020.
As one of the largest national business groups today, Astra has
built a strong reputation through offering a range of quality
products and services, taking into account the implementation of
good corporate governance and environmental governance. Astra
always aspires to be the pride of the nation that participates in
efforts to improve the welfare of the Indonesian people.
Therefore, Astra's business activities strive to apply a
balanced mix in the commercial aspects of business and non-business
contributions through 9 foundations and a variety of sustainable
social responsibility programmes Astra Untuk Indonesia Sehat, Astra
Untuk Indonesia Cerdas, Astra Untuk Indonesia Hijau and Astra Untuk
Indonesia Kreatif.
Astra initiated the Semangat Astra Terpadu Untuk (SATU)
Indonesia Awards programme, which has entered the eleventh year,
and has given recognition awards to 305 young Indonesians,
consisting of 59 national level recipients and 246 provincial level
recipients in the fields of Health, Education, the Environment,
Entrepreneurship and Technology, which are integrated with Astra's
wide range of community activities through 87 Kampung Berseri Astra
and 645 Desa Sejahtera Astra initiated in 34 provinces throughout
Indonesia.
For further information, please visit www.astra.co.id &
www.satu-indonesia.com , and follow Astra through Instagram
(@SATU_Indonesia), Youtube (SATU Indonesia), Facebook (Semangat
Astra Terpadu) and Twitter (@SATU_Indonesia).
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END
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