JDS.L Regulatory News (JDS)

28 Feb 2007 10:53

Jardine Strategic Hldgs Ld28 February 2007 To: Business Editor 28th February 2007 For immediate release PT Astra International Tbk Financial Statements For the Year Ended 31st December 2006 The following announcement was issued today by the Company's 64%-ownedsubsidiary, Jardine Cycle & Carriage Limited, which holds 50.1% of PT AstraInternational Tbk. For further information, please contact: Jardine Matheson LimitedNeil M McNamara (852) 2843 8227 Matheson & Co., LimitedPhilip Hawkins (020) 7816 8136 GolinHarrisKennes Young (852) 2501 7987 Weber Shandwick FinancialRichard Hews/ Helen Thomas (020) 7067 0700 28 February 2007 PT ASTRA INTERNATIONAL TBKFINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 Highlights • Earnings per share down 32% to Rp 917 • Decline in wholesale motor vehicles and motorcycle volumes for the year • Increased production levels in contract mining business • Growth in palm oil sales volumes and firmer CPO prices offset by cost increases "2006 proved, as expected, to be a challenging year. The Group's businessesperformed satisfactorily in the circumstances. Whilst the first quarterperformance may be impacted by the effects of the recent flooding in Jakarta,the more positive macro conditions should lead to improved performance in 2007." Michael D. RuslimPresident Director28 February 2007 Group Results Year to 31 December 2006 2005 Change Rp bn Rp bn % Net revenue 55,508 61,732 -10Operating income 4,991 6,414 -22Net income 3,712 5,457 -32 Rp RpNet earnings per share 917 1,348 -32 As at 31 As at 31 December December Change 2006 2005 % Rp bn Rp bnShareholders' funds 22,376 20,424 10 Rp RpNet asset value per share 5,527 5,045 10 The financial results for the year ended 31 December 2006 and 31 December 2005have been prepared in accordance with accounting principles generally acceptedin Indonesia and have been audited in accordance with auditing standardsestablished by the Indonesian Institute of Accountants. PRESIDENT DIRECTOR'S STATEMENT Overview Trading conditions in 2006 were challenging as the Indonesian economy adapted tothe changes brought about by the reduction of fuel subsidies in the last quarterof 2005. Improvements in the economic outlook over the course of the yearallowed a moderation in the level of interest rates, leading to improvedconsumer confidence and an increase in motorcycle volumes, albeit at reducedmargins. Performance The Group's net income for the year ended 31 December 2006 declined by 32% to Rp3.7 trillion. Earnings per share decreased to Rp 917. Automotive Operating income from the automotive business was 51% lower for the year 2006 atRp 859 billion. Weak demand saw the overall wholesale market for motor vehicles fall by 40% to318,904 units. Astra's motor vehicle sales declined to 174,827 units, areduction of 32%, such that its market share increased from 49% to 55%. Duringthe period, Astra successfully launched four new models, the Toyota Yaris, thenew Toyota Camry, the Toyota Rush, the Daihatsu Terios and six revamped models.At the end of the year, Astra Daihatsu Motor opened its new engine plant inKarawang and increased its production capacity from 114,000 to 150,000 units peryear. The overall wholesale market for motorcycles declined by 13% to 4.4 millionunits. Astra Honda motorcycle sales were 12% lower compared to 2005 at 2.4million units, with a market share of 53%. Second half volumes improvedmarkedly, increasing to 1.4 million units compared to 0.9 million units in thefirst half, albeit at lower margins. Astra Honda broadened its product rangeduring the period with the launch of one new model, the Vario, its firstautomatic model and four revamped models, the Supra Fit R, the new Mega Pro, thenew Tiger and the Fit S. PT Astra Otoparts Tbk's component manufacturing operations continued to beaffected by lower volumes and resulted in a slightly lower net income of Rp 282billion. Non-Automotive Operating income from the non-automotive businesses, comprising mainlyagribusiness, financial services, and heavy equipment was Rp 4.1 trillion, areduction of 12%. Net income of PT Astra Agro Lestari Tbk ("AAL") remained flat at Rp 787 billion.AAL booked higher sales due to an increase of 11% in crude palm oil ("CPO")sales volumes and firmer CPO prices, although this was offset by cost increases.AAL continues to replenish its land bank for new palm oil and rubberplantations. Astra's financial services activities declined as a consequence of the moredifficult conditions in the automotive markets. The amounts financed by FederalInternational Finance, Astra Credit Companies and Toyota Astra Financial Servicewere down 20% to Rp 19.1 trillion. Provisions for loan losses increased over theperiod. On 16 September 2006 Astra increased its stake in Bank Permata ("BP") from31.55% to 44.51% for a consideration of Rp 894 billion. Astra's total investmentin BP is now Rp 3.1 trillion. BP's net income for the period was Rp 311 billion,an increase of 6% from last year which was satisfactory in the challengingmarket conditions. Net income of PT United Tractors Tbk ("UT") decreased by 11% to Rp 930 billion.UT's contract mining subsidiary, PT Pamapersada Nusantara, is continuing toperform satisfactorily with increases in both overburden removal and coalextracted of 20%. Profitability has however been impacted by an increase inprovisions for doubtful accounts. Sales of Komatsu heavy equipment declined by6% to 2,250 units due to lower demand levels, but its market share remainedstable at 48%. Astra's infrastructure investment in a toll road is performing satisfactorily.In July, Astra purchased a 30% interest in the franchise for one of the twoGreater Jakarta water utilities that runs until 2023. Further infrastructureinvestments are under review. Group The Group's net asset value grew by 10% over the year to Rp 22.4 trillion andthe net asset value per share rose to Rp 5,527. The Group's net debt as at 31 December 2006 was Rp 17.1 trillion, compared to Rp22.5 trillion at the end of 2005. Excluding net debt within the Group'sfinancial services businesses, the Group's net debt at 31 December 2006 was Rp3.6 trillion (2005: Rp 2.6 trillion), representing a net debt to equity ratio of16% up from 13% at the end of 2005. Borrowings increased primarily as a resultof the group's investment in Bank Permata. At the beginning of February 2007, the Greater Jakarta area suffered majorflooding. The level of property damage to the Group is not significant but theimpact on automotive sales in the short term is somewhat unpredictable. Dividend An interim dividend of Rp 150 per share (2005: Rp 100) was paid on 15 November2006. A remaining dividend of Rp 290 per share will be proposed to shareholders at the Annual General Meeting on 23 May 2007, bringing the total dividend for this year, if approved, to Rp 440 per share (2005: Rp 440) Prospects Whilst the first quarter performance may be impacted by the effects of therecent flooding in Jakarta, the more positive macro conditions should lead toimproved performance in 2007. Michael D. RuslimPresident Director28 February 2007 For further information, please contact: PT Astra International TbkAminuddin, Corporate SecretaryTel: 62 - 21 - 6531 0418 This information is provided by RNS The company news service from the London Stock Exchange