Jardine Cycle & Carriage

• Underlying profit 50% lower at US$429 million
• Significantly weaker performances from Astra’s automotive, financial services and heavy equipment and mining operations
• Direct Motor Interests performance affected by lower profitability in Cycle & Carriage Singapore and Tunas Ridean
• Other Strategic Interests performance relatively stable
• Proposed final dividend of US¢34 per share, total dividend of US¢43 per share for the year, 51% lower than 2019

Jardine Cycle & Carriage’s (‘JC&C’) underlying profit attributable to shareholders was 50% lower than the same period last year at US$429 million. After accounting for non-trading items, profit attributable to shareholders was US$540 million, 39% lower than the same period last year. Non-trading items in 2020 included a US$188 million gain on the disposal of Astra’s investment in Permata Bank and US$109 million unrealised fair value gains related to non-current investments. These were partly offset by an impairment loss of US$182 million in respect of the group’s investment in Siam City Cement, reflecting several years of challenging market conditions.

Astra’s contribution to the group’s underlying profit of US$309 million was 57% down from the previous year. There were weaker performances from its automotive, financial services, and heavy equipment and mining divisions.

The underlying profit from Direct Motor Interests was 78% lower at US$14 million, mainly due to lower contributions from Cycle & Carriage Singapore and Tunas Ridean in Indonesia.

Other Strategic Interests contributed an underlying profit of US$120 million, down 5% from the previous year.

Direct Motor Interests

Direct Motor Interests faced challenging trading conditions during the year. Cycle & Carriage Singapore saw lower sales and weaker margins. Passenger car sales and market share both fell. In Indonesia, Tunas Ridean’s automotive business saw reduced sales, while its consumer finance operations were adversely impacted by lower lending volumes and increased loan provisioning. Cycle & Carriage Bintang in Malaysia contributed a lower loss than the prior year, with improved sales in the second half of the year due to a sales tax reduction, as well as cost savings initiatives.

Other Strategic Interests

Under Other Strategic Interests, Thaco saw a lower underlying performance than last year. Its automotive business provided a lower contribution due to reduced margins, attributable mainly to difficult market conditions in the first half of the year as a result of the pandemic, partly offset by higher unit sales. Thaco’s real estate business saw better performance than the previous year, as sales resumed on the back of a market recovery, while its new venture in the agriculture sector contributed a loss.

Siam City Cement’s contribution was higher than the previous year, with margins benefitting from improved operational efficiencies, which helped to offset a decline in sales.

There was a higher contribution from REE, due to a stronger performance by the real estate business and the effect of an increase in JC&C’s shareholding to 29.8%, partly offset by weaker performances from its hydropower investments and its M&E business.

The group’s investment in Vinamilk delivered slightly higher dividend income of US$37 million. Vinamilk’s export business continued to grow while its domestic dairy segment remained relatively stable.