Group Overview
Jardine Cycle & Carriage ("JC&C" or "the Group") is the investment holding company of the Jardine Matheson Group in Southeast Asia.
JC&C seeks to grow with Southeast Asia by investing in market-leading businesses based on the themes of urbanisation and the emerging consumer class. The Group works closely with its businesses to enable them to achieve their potential and to elevate their communities.
The Group has a 50.1% interest in Astra, a diversified group in Indonesia, which is also the largest independent automotive group in Southeast Asia.
JC&C also has significant interests in Vietnam, including 26.6% in Truong Hai Auto Corporation, 29% in Refrigeration Electrical Engineering Corporation and 10.6% in Vinamilk. Its 25.5%-owned Siam City Cement also has a presence in South Vietnam, in addition to operating in Thailand, Sri Lanka, Cambodia and Bangladesh.
The other investments in JC&C’s portfolio are the Cycle & Carriage businesses in Singapore, Malaysia and Myanmar, and 46.2%-owned Tunas Ridean in Indonesia. These motor businesses are managed by Jardine International Motors.
JC&C is a leading Singapore-listed company, 75%-owned by the Jardine Matheson Group. Together with the Group's subsidiaries and associates, JC&C employs more than 250,000 people across Southeast Asia.
Download GROUP OVERVIEW
Revenue
US$19bn
Combined gross revenue*
US$41bn
Underlying profit attributable to shareholders
US$863m
Dividend per share
US¢87
* Includes 100% of revenue from associates and joint ventures
The exchange rate of US$1= S$1.35 (31st December 2018: US$1= S$1.37) was used for translating assets and liabilities at the balance sheet date and US$1= S$1.36 (2018: US$1= S$1.35 ) was used for translating the results for the period. The financial results for the year ended 31st December 2019 have been prepared in accordance with International Financial Reporting Standards.
-
†
The accounts have been restated due to changes in accounting policies upon adoption of IFRS 16 Leases.
-
#
The Group uses underlying profit in its internal financial reporting to distinguish between ongoing business performance and non-trading items. Items classified as non-trading items include fair value gains or losses on revaluation of investment properties, agricultural produce and equity investments which are measured at fair value through profit and loss; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets and other investments; provisions for closure for businesses; acquisition-related costs in business combinations and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into the Group's underlying business performance.
-
^
Included in ‘non-trading items’ are unrealised gain/losses arising from the revaluation of the Group’s equity investments.
-
*
not meaningful
Underlying profit attributable to shareholders
US$863m
- Automotive 37%
- Financial Services 25%
- Heavy Equipment & Mining 26%
- Agribusiness 1%
- Utilities & Infrastructure 2%
- Consumer Products 4%
- Property 1%
- Cement 3%
- Others 1%
- Indonesia 80%
- Vietnam 11%
- Singapore6%
- Thailand 3%
- Insignificant contribution from Malaysia and Myanmar
CONVERSATION WITH GROUP MANAGING DIRECTOR BENJAMIN BIRKS
Mr Birks shares his approach for JC&C’s strategy in Southeast Asia.
Our approach as a regional investment holding company, is to work closely with our market-leading businesses and to help provide the conditions that will assist them reach their potential.
Read MoreQ HAVING RECENTLY TAKEN ON THE ROLE OF GROUP MANAGING DIRECTOR, WHAT ARE YOUR FIRST IMPRESSIONS OF JC&C?
A My first impressions come from visiting our interests in Vietnam, Indonesia, Thailand, Myanmar, Singapore and Malaysia, and taking the opportunity to connect with our many partners and colleagues to gain a broader understanding of the backdrop and context within which we operate.
I feel excited about the long-term opportunities for this region. Over the next decade, Southeast Asia’s population is expected to grow to over 700 million. There should be an additional 100 million urban residents, with over US$2 trillion of infrastructure required to keep pace with this development. By 2025, the “middle income” sector will make up two-thirds of the population and growth will be driven by a young, educated and ever more digitally savvy population. Taken together, we can expect growth at an annual rate of around 6%, with GDP projected to double by 2030. Southeast Asia is on track to become the fourth largest global economy within the next 10 years.
I’m also increasingly aware that this pace of change will bring a unique set of challenges for society to solve. With ever more people wishing to enjoy the opportunities of development, there will be pressure to find good answers to meet the growing need for energy and infrastructure, housing and transportation, healthcare and education, and to do this in a clean and safe environment, with solid institutions where people can access decent work. I would like Jardine Cycle & Carriage to play an active role in doing our bit to help solve some of societies’ bigger challenges.
Q WHAT IS JC&C’S LONG-TERM VISION?
A We will achieve this by focusing on Southeast Asia, where we have proximity, management expertise, and have built up local knowledge and established relationships. This is the foundation upon which we have built a track record of delivering performance.
Our investment themes are around urbanisation and the emerging consumer class in Southeast Asia and our interests continue to be well-plugged into these macroeconomic fundamentals.
Our approach as a regional investment holding company is to work closely with our market leading businesses and to help provide the conditions that will assist them reach their potential.
Our vision is to grow with Southeast Asia while also playing an active role in improving and elevating the communities where we operate.
Q HOW IS JC&C GROWING ALONGSIDE SOUTHEAST ASIA?
A Our interests are closely aligned with the long-term development of Southeast Asia: We have market-leading businesses in six countries and across eight sectors. These businesses can actively contribute to the development of our society and communities.
Astra’s wide range of businesses are key to Indonesia’s development. Its automotive, financial services, heavy equipment and mining, toll roads, agribusiness, property and information technology businesses support the country’s growth and provide over 220,000 jobs.
We have also built up significant presence in Vietnam. Through Truong Hai Auto Corporation, Refrigeration Electrical Engineering Corporation and Vinamilk, we are invested in transport, real estate, agriculture, power generation, utilities, mechanical and electrical engineering services, and dairy. These businesses are well set up to serve Vietnam’s fast-growing urban populations and emerging consumer needs.
Another strategic interest, Thailand’s Siam City Cement likewise has a leading position in the region operating in South Vietnam, Cambodia, Sri Lanka and Bangladesh. The production of cement, concrete and other building materials complements the region's appetite for new infrastructure.
We are also well aware that consumer demands change and there is a pressing need to evolve to stay relevant and competitive. The automotive industry, a core sector for us, is a good example of an industry transforming. We responded by setting up Jardine International Motors in 2019 to better allow us to evolve faster by leveraging our scale, knowledge and capability held across the Jardine Matheson Group.
Within this annual report, we share our strategy towards the shifts in the automotive business, showcase our interest in Vietnam, as well as present in greater depth the opportunity we see in Southeast Asia.
Our aim is to grow with Southeast Asia and elevate communities. I look forward to helping JC&C realise these goals and would like to thank our business and community partners as well as my fellow colleagues for the continued support.
FEATURES
DowNload FEATURESTHE SOUTHEAST ASIA OPPORTUNITY
In the past decade, Southeast Asia has undergone transformation from being a predominantly commodity-driven economy to one that is driven by domestic consumption today.
Read MoreAUTOMOTIVE
Southeast Asia has become a key player in the global automotive market – both in production and consumption. Indonesia and Thailand are the two largest automotive manufacturers in the region but Vietnam, Malaysia, Myanmar and the Philippines are increasingly establishing themselves as manufacturing and assembly bases that are well-equipped to serve the region and beyond.
The total Southeast Asia new car market for 2019 is estimated at 3.4 million units. With stable economic development and higher per capita income, this is projected to increase to 4 million units by 2025.
Read MoreVIETNAM
Vietnam is on the rise to becoming one of Southeast Asia’s biggest economies. The country’s robust manufacturing industry and foreign direct investment ("FDI") inflows have delivered
7% GDP growth in 2019
6.3% - 6.9% over the next five years
Over the past decade, Vietnam has experienced significant growth from urbanisation and a transition to a more industrial and market-driven economy. Its population is burgeoning and will reach 100 million by 2023. The country also has a relatively young population, with a median age of 30.
Read MoreTHE SOUTHEAST ASIA OPPORTUNITY
In the past decade, Southeast Asia has undergone transformation from being a predominantly commodity-driven economy to one that is driven by domestic consumption today.
| today | 2030 |
|---|---|
| 657 million population | 710 million population1 |
| US$3 trillion GDP* | US$6 trillion GDP |
| 6% GDP growth | Expected annual average growth of 6% for the next decade |
*2018 figure
Over the past years, Southeast Asia has been undergoing transformations due to the growth of countries such as Vietnam, Thailand, Indonesia and the Philippines, which have been developing as the manufacturing hubs of multinational corporations. Exports are expected to be a major source of economic growth over the next few years.
Foreign Direct Investment ("FDI") inflows to the manufacturing sector increased to a record level of US$55 billion in 2018, accounting for 35% of total inflows in the region.2
Southeast Asia is also home to abundant natural resources such as key minerals and agricultural products: a majority of the world’s rubber, palm oil and fruit products are produced and exported to the rest of the world.
In addition, the digital economy in Southeast Asia is growing. In 2018, the digital economy comprised 7% of Southeast Asia’s Gross Domestic Product ("GDP").
By 2025, the internet economy in the six largest markets in Southeast Asia – Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam – is projected to reach US$200 billion, a 400% increase and could uplift the region’s economy further by US$1 trillion.
JC&C’s investments are centered around these key sectors in Southeast Asia.
Our strategy
- We focus on Southeast Asia, where we have proximity, management expertise, knowledge, relationships and a track record of delivering performance.
- Our investment themes are around the urbanisation and the emerging consumer class in Southeast Asia.
- We invest in market-leading businesses and work closely with them to reach their potential and elevate their communities.
INVESTMENT THEMES
URBANISATION
Urbanisation is poised to accelerate. Today, half the region’s population live in cities. This is expected to increase to two-in-three people by 2025.3
This will need to be supported by further infrastructure development, which in turn will drive consumption. More people in countries with low urban populations such as Vietnam, Indonesia and the Philippines, are moving to the cities for better employment and education opportunities. To support this, infrastructure projects such as roads, railways, airports and sea ports are being built.
An investment of US$2.8 trillion is required for infrastructure from 2016 through 2030 to meet the region’s urbanisation needs.4
EMERGING CONSUMER CLASS
Today, Southeast Asia has the world’s third largest labour force with an average age of 30 years.
The average GDP per capita is projected to grow from US$4,500 in 2018 to over US$6,500 by 2025 – representing a significant growth in buying power.
Southeast Asia is the world’s third largest recipient of FDI5, helping to drive the region’s continued urbanisation and economic development. The region has also succeeded in reducing poverty from 47% in 1990 to 14% in 2015.
By 2030, 163 million individuals' household income will become “consuming class”, expected to demand more goods and services.5
With Southeast Asia’s urbanisation and growing consumer class, there is an increased demand for infrastructure, housing, energy, transportation, financing and consumables. We seek to invest in businesses that participate in key sectors that provide products and services to meet these growing needs.
These businesses also contribute to the economic growth of the country and improve lives of the local people by actively engaging with their communities as well as creating employment opportunities.
At JC&C, we invest in businesses that are leaders in their respective sectors and markets. With their strong market position, competitiveness, best practice and good governance, these businesses are positioned to succeed for the future.
1. Enterprise Singapore
2. ASEAN Investment Report 2019
3. ASEAN Smart Cities Network 2018
4. ADB Special Infrastructure report 2017
5. ASEAN Investment Report 2018
AUTOMOTIVE
Southeast Asia has become a key player in the global automotive market – both in production and consumption. Indonesia and Thailand are the two largest automotive manufacturers in the region but Vietnam, Malaysia, Myanmar and the Philippines are increasingly establishing themselves as manufacturing and assembly bases that are well-equipped to serve the region and beyond.
The total Southeast Asia new car market for 2019 is estimated at 3.4 million units. With stable economic development and higher per capita income, this is projected to increase to 4 million units by 2025.
Automotive contribution to JC&C's underlying profit
37%
THE FUTURE OF MOBILITY
At JC&C, we recognise that mobility disruptions and shifts will significantly impact the automotive value chain. The sector in Southeast Asia is expected to evolve according to the following five themes.
CONNECTED
As the customers are more connected directly to Original Equipment Manufacturers ("OEMs") and other service providers through technology, dealers have to relook at their operating models and uncover new ways to deliver a more customer-centric experience.
ELECTRIC VEHICLES
A growing focus on environmental sustainability and stricter emission regulations have driven the popularity of electric vehicles. By 2030, it is estimated that Southeast Asia’s annual new investment in passenger electric vehicles will reach US$6 billion.1 The shift towards electric vehicles may impact the aftersales segment and compel dealers to reassess how they sell both electric and conventional vehicles.
SHARED MOBILITY
The increasingly popular ride-hailing services have propelled brands such as Gojek and Grab to success. The future of mobility in Southeast Asia will be a combination of ownership and mobility.
AUTONOMOUS
Autonomous vehicles promise to deliver enhanced mobility, less traffic congestion and increased safety. This shift towards driver-less vehicles may increase the attractiveness of mobility as a service. Businesses have to position themselves as providers of integrated mobility concepts.
REGULATORY
The government in each country will play a critical role in driving the adoption of electric and autonomous vehicles. Monetary incentives, tax exemptions and subsidies are some of the ways authorities may stimulate interest in the supply and demand of these next-generation vehicles in Southeast Asia.
JARDINE INTERNATIONAL MOTORS
To address the disruptive challenges facing the automotive sector, the Jardine Matheson Group (“Jardines”) established Jardine International Motors (“JIM”) in May 2019. JIM provides a unified approach that combines the leadership and experience of JC&C’s Cycle & Carriage business in Singapore, Malaysia and Myanmar, and Tunas Ridean in Indonesia, as well as Zung Fu Motors Group in Greater China. The shared wisdom, expertise, scale and relationships will enable JIM to position itself to respond to the disruptive themes faced by the automotive industry.
JIM’s unified strategy is digitally-led, customer-centric and focused on taking full advantage of future opportunities to generate new streams of revenue in the automotive field.
Our strategy
-
DIGITAL TRANSFORMATION
(i) Digital Enterprise: digital transformation of JIM's core systems
(ii) Digital Business: data transformation to map and manage customer journey
(iii) Digital Customer: building digital connectivity to the customer
-
DOWNSTREAM GROWTH
Develop downstream capabilities from retail e.g. used cars, insurance, finance and mobility -
EVER MORE CUSTOMERS
Use our digital and expanding customer service offerings to attract and enhance customer connectivity -
OPERATIONAL EFFICIENCY
Streamline core capability to delivery our strategy and maximise efficiency -
CORE VALUES
Ensure that what we believe in is at the heart of our business and operations
1. Bain & Company, “Finding a New Route to Southeast Asia’s Vehicle Future”, June 2019
VIETNAM
Vietnam is on the rise to becoming one of Southeast Asia’s biggest economies. The country’s robust manufacturing industry and foreign direct investment ("FDI") inflows have delivered
7% GDP growth in 2019
6.3% - 6.9% over the next five years
Over the past decade, Vietnam has experienced significant growth from urbanisation and a transition to a more industrial and market-driven economy. Its population is burgeoning and will reach 100 million by 2023. The country also has a relatively young population, with a median age of 30.
OUR PORTFOLIO
TRUONG HAI AUTO CORPORATION ("THACO")
#1
in commercial vehicle market
#2
in passenger car market
AUTOMOTIVE
The Vietnamese car market grew from 80,000 units in 2012 to 306,000 in 2019, recording a compound annual growth rate ("CAGR") of 21%. This strong growth is expected to continue in the passenger car market.
In Vietnam, THACO is a leading automotive manufacturer, assembler, distributor and retailer with close to 200 branches nationwide. Its automotive brands for passenger cars include Kia, Mazda, Peugeot as well as BMW and MINI, and commercial vehicles Foton, Kia, Hyundai and FUSO.
REAL ESTATE
Demand for affordable to high-end residential properties in Vietnam will continue to be driven by strong population growth, a high urbanisation rate and increased foreign participation and investments.
Vietnam is currently witnessing a high absorption rate of
70–80%
of new supply, at 30,000 to 40,000 new apartment units each year.
The office market in Ho Chi Minh City remains strong with an occupancy rate above 90% despite the major growth of office supply.
REAL ESTATE PROJECTS:
VIETNAM
An urban development project within the prime site of Thu Thiem New Urban Area, District 2 of Ho Chi Minh City, VIETNAM covering 1,000,000 sqm of land area.
– Residential (shophouses, apartments, condominiums, high-end villas) – Commercial (office buildings, retail complex)
MYANMAR
Myanmar Centre is a large mixed-use development in Yangon which currently comprises a total net lettable area of 144,000 sqm. Phase 2 of the development has been progressively launched from 2020 which comprises 196,000 sqm of total lettable area.
– Residential (apartments, service apartments) – Commercial (office buildings, retail complex) – Melia Hotel – five-star hotel offering 429 rooms
AGRICULTURE
THACO has a sizeable footprint in Cambodia and Laos with about 20,000 hectares of plantation area growing fruit crops – primarily bananas.
LOGISTICS
THACO provides an end-to-end logistics service supply chain from warehousing including bonded warehousing as well as freight forwarding down to seaport services.
REFRIGERATION ELECTRICAL ENGINEERING CORPORATION ("REE")
POWER & UTILITIES
Vietnam’s total energy demand is expected to increase nearly 2.5 times from 2015 to 2035. Demand for electricity is projected to grow 8% annually on average till 2035.
Despite a wide range of primary energy sources such as oil, gas, coal and hydro power, Vietnam has become a net energy importer since 2015. Renewable energy sources such as hydro, solar and wind represent about 45% of the installed capacity in 2015. It is projected to increase in the longer term to about 50% in 2035.
REE holds a portfolio of infrastructure assets, mainly in power (hydro and thermal) and water (treatment and distribution). REE’s interests in these assets range from 19% to 66%.
- Total designed capacity (gross) 3,704MW
- Hydro 1,289MW
- Thermal 2,340MW
- Solar and wind 75MW
MECHANICAL AND ELECTRICAL ENGINEERING
REE is a mechanical and electrical engineering contractor in infrastructure, commercial and industrial engineering works.
REAL ESTATE
REE’s real estate portfolio comprises the management and leasing of Grade B office space, as well as property development and trading.
Total lease office area of over
150,000 sqm
under management, primarily located in Ho Chi Minh City.
REE’s flagship properties are located in e.town, an extensive campus with office buildings and ancillary facilities such as conference halls, food & beverage outlets, swimming pool, gym and 24-hour security.
VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY ("VINAMILK")
#1
in Vietnam by market share
12 farms
(With a further 4 farms under construction in Vietnam and Laos)
The dairy consumption per capita in Vietnam is about 20kg* per capita. Dairy market size was about US$5 billion* and is expected to continue with strong growth.
A NETWORK OF OVER
250,000
distribution points in Vietnam
A global footprint operating in USA, New Zealand, Cambodia and Laos.
15 factories
(13 in Vietnam, 1 in Cambodia, 1 in USA)
APPROXIMATELY
157,500
cowheads
* Information as at August 2019
Underlying profit at
US$863m
Stable performance from Astra
Direct Motor Interests down due to Singapore and Malaysia
Other Strategic Interests impacted by THACO’s lower automotive profits
Chairman’s statement
Jardine Cycle & Carriage (“JC&C” or “the Group”) delivered a stable performance in 2019. Astra saw strong contributions from financial services and gold mining, but its automotive, heavy equipment and agribusiness results were impacted by relatively weak domestic consumption and low commodity prices. Truong Hai Auto Corporation (“THACO”) saw lower performance from its automotive business as a result of increased competition. There was a higher contribution from Siam City Cement and the Group received an increased dividend from its investment in Vinamilk.
Read MoreOVERVIEW
Jardine Cycle & Carriage (“JC&C” or “the Group”) delivered a stable performance in 2019. Astra saw strong contributions from financial services and gold mining, but its automotive, heavy equipment and agribusiness results were impacted by relatively weak domestic consumption and low commodity prices. Truong Hai Auto Corporation (“THACO”) saw lower performance from its automotive business as a result of increased competition. There was a higher contribution from Siam City Cement and the Group received an increased dividend from its investment in Vinamilk.
The Group’s underlying profit attributable to shareholders for 2019 was 1% higher at US$863 million. Profit attributable to shareholders increased to US$881 million, after net non-trading gains of US$18 million.
Astra contributed US$716 million to the Group’s underlying profit, relatively stable compared to the previous year. The underlying profit from the Group’s Direct Motor Interests was 11% lower at US$63 million, while its Other Strategic Interests contributed an underlying profit of US$126 million, down 13% from the previous year. Corporate costs were US$42 million, down from US$77 million in the previous year primarily due to a foreign exchange gain from the translation of foreign currency loans in 2019, compared to a foreign exchange loss in the previous year.
The Group’s financial position remains strong, with shareholders’ funds up 12% at US$6,860 million and net asset value per share at US$17.36 at the year end. Consolidated net debt excluding financial services companies was US$3.0 billion at 31st December 2019, representing gearing of 20%, up from 16% at the end of 2018.
Astra’s financial services subsidiaries had net debt totalling US$3.3 billion, relatively flat compared to the end of 2018. JC&C parent company’s net debt was US$1.5 billion, compared with US$1.3 billion at the previous year end.
STRATEGIC DEVELOPMENTS
ASTRA
During the year, a further investment of US$100 million was made in Gojek, bringing Astra’s total investment to US$250 million. As part of the collaboration between Astra and Gojek, a joint venture company was formed to provide fleet management support for GoCar, a ride-hailing online transportation system in Indonesia.
In May 2019, Astra acquired a 44.5% stake in the 36km Surabaya-Mojokerto toll road for US$113 million. It also completed the acquisition of an additional 10% stake in the 117km Cikopo-Palimanan toll road in November 2019, bringing its ownership to 55%.
In December 2019, Astra announced the sale of its 44.6% interest in Permata Bank to Bangkok Bank Public Company Limited. The divestment is in line with Astra’s ongoing strategic review of its portfolio. Completion of the sale is subject to the fulfillment of certain conditions and the obtaining of necessary approvals.
DIRECT MOTOR INTERESTS
Jardine Matheson has a long-term vision and commitment to strengthen its automotive businesses and ensure that they are resilient and able to address anticipated disruption in the sector. In support of this ambition, Jardine International Motors (“JIM”) was formed in 2019 to provide management and oversight across the wider Jardine Matheson Group’s automotive interests, in order to effectively harness expertise and talent, increase customer focus and create economies of scale. As a result, JC&C’s Direct Motor Interests are now managed by JIM while the Group maintains its full ownership of these businesses.
The Chief Executive of JIM is former JC&C Group Managing Director Alex Newbigging.
OTHER STRATEGIC INTERESTS
During the year, JC&C increased its interest in THACO from 25.3% to 26.6% through subscribing to a share placement, for consideration of US$168 million. THACO continues to diversify its business into property and agriculture, and its property interests in particular are expected to grow in importance going forward.
JC&C also increased its stake in Refrigeration Electrical Engineering Corporation (“REE”) from 24.9 % to 29.0% for US$25 million, by way of a public tender offer and market purchases.
DIVIDENDS
The Board is recommending a final one-tier tax exempt dividend of US¢69 per share (2018: US¢69 per share) which, together with the interim dividend, will produce a total dividend for the year of US¢87 per share (2018: US¢87 per share).
PEOPLE
On behalf of the Board, I would like to express our appreciation to our more than 250,000 employees across the region for their continuing hard work and dedication in what remains a challenging business environment.
Mr Hassan Abas will be retiring as a director at the close of the upcoming Annual General Meeting in 2020, after more than 27 years on the Board. He has also served as the Lead Independent Director, chairman of the Audit and Remuneration Committees, and as a member of the Nominating Committee for a number of years. On behalf of the Board, I would like to record our thanks for his valuable contribution to the Group.
Shareholders’ funds
US$7bn
Dividend per share
US¢87
OUTLOOK
In 2020, market conditions in Indonesia are expected to remain challenging and conditions generally in Southeast Asia may be impacted by COVID-19.
Ben Keswick
Chairman
GROUP MANAGING DIRECTOR’S REVIEW
The Group’s structure comprises three business pillars: (i) Astra; (ii) Direct Motor Interests (“DMI”), which consists of the Group’s non-Astra automotive businesses; and (iii) Other Strategic Interests, which covers a range of business interests and which now includes THACO following its expansion beyond automotive into property and agriculture. The contribution to JC&C’s underlying profit attributable to shareholders by business segments was as follows:
Read MoreClick to view: UNDERLYING PROFIT ATTRIBUTABLE TO SHAREHOLDERS BY BUSINESS
ASTRA
Astra contributed US$716 million to JC&C’s underlying profit, a stable performance compared to the previous year. Astra reported a net profit equivalent to US$1.5 billion under Indonesian accounting standards, largely unchanged from the previous year. There were lower contributions from Astra’s automotive and agribusiness divisions, which offset a higher contribution from its financial services business and gold mining operation.
Automotive
Net income from Astra’s automotive division was down 1% at US$594 million. This was mainly due to lower car sales volumes and increased manufacturing costs, partially offset by higher motorcycle sales volumes. Highlights were as follows:
- Car sales were 8% lower at 536,000 units. The Indonesian wholesale market declined by 11% to 1.0 million units in 2019. Astra launched 15 new models and 11 revamped models during the year and increased its market share from 51% to 52%.
- Motorcycle sales increased by 3% to 4.9 million units. The Indonesian wholesale market increased by 2% to 6.5 million units. Astra’s market share was slightly higher at 76%. Six new models and 21 revamped models were launched during the year.
- Astra Otoparts reported a 21% increase in net income at US$52 million. This was largely due to higher revenue from the replacement market and lower production costs.
Financial Services
Net income from Astra’s financial services division increased by 22% to US$415 million, mainly due to a larger loan portfolio and an improvement in non-performing loans. Highlights were as follows:
- Consumer finance businesses saw an 8% increase in the amount financed to US$6.2 billion. The net income contribution from Astra’s car-focused finance companies increased by 29% to US$106 million, with lower non-performing loan losses. The net income contribution from the group’s motorcycle-focused finance business increased by 11% to US$187 million, mainly due to a larger loan portfolio.
- Heavy equipment-focused finance operations saw an 18% decrease in the amounts financed to US$302 million. The net income contribution from this business grew, however, by 14% to US$7 million, as a result of lower loan provisions.
- Permata Bank reported a 66% increase in net income to US$106 million, due to improved revenue and lower loan impairment levels, attributable to improved loan quality and better levels of recovery from non-performing loans. The bank’s gross and net non-performing loan ratios improved to 2.8% and 1.3%, respectively, compared to 4.4% and 1.7% at the end of 2018.
- General insurance company Asuransi Astra Buana reported 4% growth in net income at US$77 million, with increased investment income.
Heavy Equipment, Mining, Construction & Energy
Net income from Astra’s heavy equipment, mining, construction and energy division increased by 1% to US$475 million, mainly due to the contribution from the new gold mining operation, offset by the impact of lower heavy equipment sales and a loss incurred in the general contracting business. Highlights were as follows:
- United Tractors reported a 2% increase in net income to US$801 million.
- Agincourt Resources achieved gold sales of 410,000 oz.
- Komatsu heavy equipment sales fell by 40% to 2,926 units, while parts and service revenues were also lower.
- Mining contracting operations saw a 1% higher overburden removal volume at 989 million bank cubic metres, and 5% higher coal production at 131 million tonnes.
- Coal mining subsidiaries delivered 21% higher coal sales at 8.5 million tonnes, including 1.2 million tonnes of coking coal. However, the business was impacted by lower coal prices.
- General contractor Acset Indonusa reported a net loss of US$77 million, compared to a net income of US$1 million the year before. This was mainly due to increased project and funding costs for several ongoing contracts.
Infrastructure & Logistics
Net income from Astra’s infrastructure and logistics division increased by 49% to US$21 million, mainly due to improved toll road revenue. Highlights were as follows:
- Toll road revenue increased, with 22% higher traffic volume in Astra’s 350km of operational toll roads along the Trans-Java network and Kunciran-Serpong toll road.
- Serasi Autoraya’s net income decreased by 17% to US$18 million, due to lower used car sales and a decline in its car leasing business.
Agribusiness
Net income from Astra’s agribusiness was down 85% at US$12 million. This was primarily due to an 8% fall in average crude palm oil prices, despite a 3% increase in crude palm oil and derivatives sales to 2.3 million tonnes. There have, however, recently been signs of improvement in prices.
DIRECT MOTOR INTERESTS
Direct Motor Interests contributed US$63 million to the Group’s underlying profit, 11% lower than the prior year. Highlights were as follows:
- Cycle & Carriage Singapore (“CCS”) contributed US$57 million, 5% lower than the previous year. Its passenger car sales grew by 2% to 13,500 units, despite a 10% decrease in the overall Singapore passenger car market. This was, however, partly offset by lower margins due to stronger competitive pressure. CCS’ market share increased from 17% to 19%, with the launch of new models and competitive pricing.
- In Indonesia, Tunas Ridean contributed US$19 million, 7% higher than the previous year. The stronger contribution from its automotive and consumer finance operations was partially offset by a lower contribution from its rental business.
- Cycle & Carriage Bintang in Malaysia contributed a loss of US$6 million, compared to a profit of US$2 million in 2018. This was the result of vehicle sales having benefited from a period of zero GST in 2018, and the 2019 results being impacted by a one-off impairment charge in respect of a property asset.
OTHER STRATEGIC INTERESTS
Other Strategic Interests contributed US$126 million to the Group’s underlying profit, 13% down on the previous year. Other Strategic Interests now include THACO following its diversification into property and agriculture. Highlights were as follows:
- THACO’s contribution of US$49 million was 34% lower than last year. The contribution of US$46 million from its automotive business was 30% down on the previous year, due to a 9% decline in THACO’s vehicle sales and lower margins. Tariffs were eliminated following the full implementation of the ASEAN Trade in Goods Agreement in 2018, which led to intense competition in the completely built-up import segment. THACO’s real estate business contributed US$2 million, significantly lower than the US$7 million in 2018 due to the slowdown in the property market.
- Siam City Cement’s contribution of US$24 million was 16% higher than the previous year. Its improved domestic performance in Thailand was, however, offset by a lower contribution from its regional operations, mainly South Vietnam.
- The contribution of US$18 million from REE was 4% lower than the previous year, due to weaker performances from its hydropower investments and its M&E business, which were partially offset by a stronger contribution from real estate and the effect of an increase in the Group’s shareholding in 2019.
- The Group’s investment in Vinamilk delivered dividend income of US$36 million, compared to US$32 million in the previous year. Vinamilk’s 2019 profit was up 3% in local currency terms, with the progressive recovery of the fast-moving consumer goods sector in Vietnam.
CORPORATE COSTS
Corporate costs were US$42 million, compared to US$77 million in the previous year, which has improved the underlying profit of the Group overall. This was primarily due to a foreign exchange gain from the translation of foreign currency loans in 2019 compared to a foreign exchange loss in the previous year, partly offset by higher net financing charges and overheads.
SUMMARY
While conditions over the next year are likely to remain challenging in our key markets, the Group has a track record of delivering strong performance over time. Our portfolio of market-leading businesses is well-placed to benefit from increasing urbanisation and the growth of the emerging consumer class in Southeast Asia.
Ben Birks
Group Managing Director
GROUP FINANCE DIRECTOR’S REVIEW
In 2019, the Group’s revenue fell by 2% to US$18.6 billion, mainly due to declines in Astra’s automotive, agribusiness and heavy equipment businesses, partly offset by increases in Astra’s financial services and infrastructure and logistics businesses. Gross revenue, including 100% of revenue from associates and joint ventures, which is a measure of the full extent of the Group’s operations, increased marginally to US$40.7 billion. The increase in revenue from Astra’s associates and joint ventures was offset by a fall in revenue from Truong Hai Auto Corporation (“THACO”) due to a decline in vehicle sales and the slowdown of the property market.
Read MoreACCOUNTING POLICIES
The Company and Group accounts have been prepared under the dual compliance framework of both Singapore Financial Reporting Standards (International) (“SFRS(I)”) and (“IFRS”). The Directors continue to review the appropriateness of the accounting policies adopted by the Group, having regard to developments in SFRS(I) and IFRS. The Group adopted IFRS 16 Leases when it became effective from 1st January 2019. The adoption of this new standard does not have a material effect on the financial statements, but the comparative financial statements have been restated as the Group applied this standard using the retrospective approach.
RESULTS
In 2019, the Group’s revenue fell by 2% to US$18.6 billion, mainly due to declines in Astra’s automotive, agribusiness and heavy equipment businesses, partly offset by increases in Astra’s financial services and infrastructure and logistics businesses. Gross revenue, including 100% of revenue from associates and joint ventures, which is a measure of the full extent of the Group’s operations, increased marginally to US$40.7 billion. The increase in revenue from Astra’s associates and joint ventures was offset by a fall in revenue from Truong Hai Auto Corporation (“THACO”) due to a decline in vehicle sales and the slowdown of the property market.
Underlying operating profit from the Group’s parent company and subsidiaries of US$2,194 million was US$30 million or 2% higher than the previous year. Astra’s underlying operating profit was relatively stable compared to the previous year. The Group’s Direct Motor Interests saw a US$17 million or 21% decrease in contribution due to weaker margins in Cycle & Carriage Singapore, and an impairment loss recognised in Cycle & Carriage Bintang for its Sungei Besi site, which had been previously acquired for network expansion. Dividends from Vinamilk increased by US$4 million to US$36 million. Corporate costs excluding net financing charges were US$43 million lower mainly due to US$17 million exchange gains arising from the translation of US dollar net borrowings, compared with US$31 million of losses in the previous year.
Net financing charges, excluding those relating to the Group’s consumer finance and leasing activities, increased by US$101 million to US$269 million, mainly due to the higher levels of average net debt at the Group’s parent company, Astra’s parent company as well as Astra’s heavy equipment, mining, construction and energy operations. Interest cover (calculated as underlying operating profit before the deduction of amortisation/ depreciation of right-of-use assets, net of actual lease payments, and share of results of associates and joint ventures divided by net financing charges excluding interest on lease liabilities) excluding the financial services companies decreased to 9 times (2018: 14 times) due to the increase in consolidated debt.
The Group’s share of underlying results of associates and joint ventures fell by 2% to US$601 million. Contributions from Astra’s associates and joint ventures increased by US$6 million with better performance from the financial services and infrastructure and logistics businesses, partly offset by lower share of results from the automotive business. The contribution from Direct Motor Interests’ associates and joint ventures increased by US$2 million due to improved performance at Tunas Ridean. In Other Strategic Interests, the contribution from Siam City Cement (“SCCC”) was higher than the previous year due to an improved domestic performance in Thailand. This was offset by weaker performances by Refrigeration Electrical Engineering Corporation’s (“REE”) hydropower investments, and THACO across both its automotive and property businesses.
The underlying effective tax rate of the Group in 2019, excluding associates and joint ventures was 30%, which remains fairly comparable to 2018.
The Group’s underlying profit attributable to shareholders for the year was up by 1% at US$863 million.
NON-TRADING ITEMS
In 2019, the Group had net non-trading gains of US$18 million, principally due to unrealised fair value gains related to non-current investments. In 2018, the net non-trading losses was US$438 million mainly due to unrealised fair value losses related to non-current investments.
DIVIDENDS
The Board is recommending a final one-tier tax-exempt dividend of US¢69 per share (2018: US¢69 per share) which together with the interim dividend, will produce total dividend for the year of US¢87 per share (2018: US¢87 per share). The final dividend is intended to be payable on 25th June 2020 or such other date as may be subsequently advised by the Company, subject to approval at the Annual General Meeting to be held in 2020, to those persons registered as shareholders, as at the Record Date of the final dividend. Shareholders will have the option to receive the dividend in Singapore dollars and in the absence of any election, the dividend will be paid in US dollars. Dividends are usually declared on a semi-annual basis for every six-month period ending 30th June (in respect of an interim dividend) and 31st December (in respect of a final dividend).
CASH FLOW
SUMMARISED CASH FLOW
Cash inflow from the Group’s operating activities was US$1.7 billion, US$902 million lower than the previous year, mainly due to higher outflow from working capital changes and lower dividends received from associates and joint ventures.
Cash outflow from investing activities before disposals amounted to US$2.0 billion, US$1.1 billion lower than the previous year. This included the following:
- US$154 million for the purchase of intangible assets, which included US$40 million for the acquisition costs of contracts in Astra’s general insurance business and US$86 million for the mining exploration costs in Astra;
- US$838 million of property, plant and equipment comprising US$626 million of heavy equipment and machinery for Astra’s heavy equipment and mining, construction and energy businesses, US$87 million of equipment and network development for its automotive businesses and US$44 million for its agribusiness;
- US$18 million for additions to investment properties in Astra and US$44 million for additions to bearer plants in Astra;
- US$478 million for acquisitions and capital injection into various associates and joint ventures, including additional interest in THACO and investments in toll roads;
- US$401 million for investments mainly by Astra’s general insurance business and additional interest in Gojek.
The contribution to the Group’s cashflow from disposals for the year amounted to US$325 million which arose mainly from the sale of investments by Astra’s general insurance business and the disposal of its 49% shareholding in Mercedes-Benz Malaysia Sdn Bhd.
TREASURY POLICY
The Group manages its exposure to financial risks using a variety of techniques and instruments. The Group’s treasury policies are designed to mitigate the financial impact of fluctuations in interest rates and exchange rate and to minimise the Group’s financial risks. The investment of the Group’s surplus cash resources is managed so as to minimise risk while seeking to enhance yield. Appropriate credit guidelines are in place to manage counterparty risk.
When economically sensible to do so, borrowings are taken in local currency to hedge foreign exposures on investments. A portion of borrowings is denominated in fixed rates. Adequate headroom in committed facilities is maintained to facilitate the Group’s capacity to pursue new investment opportunities and to provide some protection against market uncertainties. Overall, the Group’s funding arrangements are designed to keep an appropriate balance between equity and debt from banks and capital markets, both short and long term, to give flexibility to develop the business.
The Group’s treasury operations are managed as cost centres and are not permitted to undertake speculative transactions unrelated to underlying financial exposures.
The Group’s financial risk factors are set out on pages 88 to 93.
FUNDING
The Group is well-financed with strong liquidity. The Group’s consolidated net debt, excluding borrowings within Astra’s financial services subsidiaries, was US$3.0 billion at the end of 2019, representing gearing of 20%, compared to net debt of US$2.2 billion at the end of 2018, with gearing at 16%. The Group parent company’s net debt increased from US$1.3 billion to US$1.5 billion.
Net debt within Astra’s financial services operations was US$3.3 billion at the end of 2019, relatively flat compared with the end of 2018.
At the year-end, the Group had undrawn committed facilities of some US$3.7 billion. In addition, the Group had available liquid funds of US$1.8 billion.
Approximately 73% of the Group’s borrowings were non-US dollar denominated and directly related to the Group’s businesses in the countries of the currencies concerned. At the year-end, approximately 63% of the Group’s borrowings, excluding Astra’s financial services companies, were at floating rates and the remaining 37% were at fixed rates including those hedges with derivative instruments with major creditworthy financial institutions. For Astra’s financial services companies, 92% of their borrowings were at fixed rates.
Debt Profile
as at 31st December 2019
- Currency
- IDR 69%
- USD 27%
- Others 4%
Debt Profile
as at 31st December 2019
- Maturity
- <1 years 56%
- 1-2 years 17%
- 2-5 years 25%
- >5 years 2%
Net Debt* and Total Equity
(US$ billion)
- Net Debt
- Total Equity
- * Excluding net debt of Astra’s financial services companies
SHAREHOLDERS’ FUNDS
Shareholders’ funds as at 31st December 2019 are analysed by business below. There were no significant changes from the previous year.
By Business
- Astra 76%
- Direct Motor Interests 4%
- Other Strategic Interests 20%
RISK MANAGEMENT REVIEW
A review of the major risks facing the Group is set out on pages 44 to 45.
Stephen Gore
Group Finance Director
Group at a Glance
DowNload group at a glance
Contribution to Underlying Profit
US$715.7m+
-0.3% from US$718.1m in 2018
- Automotive
- Financial Services
- Heavy Equipment, Mining, Construction & Energy
- Agribusiness
- Infrastructure & Logistics
- Information Technology
- Property*
+ After withholding tax on dividend
* Insignificant contribution
JC&C has 50.1% interest in Astra. Astra is a diversified business group in Indonesia with seven core businesses. It is listed on the Indonesia Stock Exchange and is one of the largest companies in Indonesia by market capitalisation. Astra employs over 220,000 people.
AUTOMOTIVE
Astra is the largest independent automotive group in Southeast Asia. Its automotive business comprises the production, distribution, retail and aftersales service of motor vehicles and motorcycles.
It manufactures, assemble, distributes, and owns dealership networks for Toyota, Daihatsu, Isuzu, Peugeot, UD Trucks and Honda motorcycles. It is also the manufacturer and the retailer of BMW and Lexus passenger cars. Additionally, Astra also manufactures and distributes automotive components.
- Astra
- Toyota
- Daihatsu
- Isuzu
- UD Trucks
- BMW
- Lexus
- Peugeot
- Honda (motorcycles)
- Key for Status
-
Manufacturer/Assembler
Distributor and Dealer
Dealer
FINANCIAL SERVICES
Astra’s financial services are extensive, consisting of consumer financing for motor vehicles and motorcycles, heavy equipment financing and banking, as well as general and life insurance. In December 2019, Astra announced the proposed disposal of its 44.6% interest in Bank Permata.
HEAVY EQUIPMENT, MINING, CONSTRUCTION & ENERGY
Astra supplies and provides aftersales services for construction and mining equipment. It is the sole distributor of Komatsu heavy equipment and is the largest coal mining services contractor in Indonesia. It also participates in general construction, thermal power businesses and gold mining.
AGRIBUSINESS
Astra’s agribusiness includes the cultivation, harvesting and processing of palm oil. It is a major producer of crude palm oil in Indonesia.
INFRASTRUCTURE & LOGISTICS
Astra’s infrastructure and logistics business includes toll road development and management, with a total interest in 350km of operational toll roads in Indonesia. This includes the Merak-Tangerang, Cikopo-Palimanan, Semarang-Solo, Jombang-Mojokerto, Surabaya-Mojokerto and Kunciran-Serpong toll roads.
INFORMATION TECHNOLOGY
Astra’s information technology business provides document information and communication technology solutions. It is the sole distributor of Fuji Xerox office equipment in Indonesia.
PROPERTY
Astra’s property development business includes the Grade A office building, Menara Astra, the 509-unit Anandamaya Residences and two residential development projects, namely Arumaya in South Jakarta and Asya in East Jakarta, as well as a 3-hectare residential and commercial development in Jakarta’s Central Business District.
Contribution to Underlying Profit
US$62.9m
-11% from US$70.7m in 2018
- Singapore
- Tunas Ridean
- Malaysia*
- Myanmar*
* Insignificant contribution
CYCLE & CARRIAGE SINGAPORE
Cycle & Carriage Singapore (100%) is a leading diverse automotive group in Singapore. It is engaged in the distribution, retail and aftersales services of Mercedes-Benz, Mitsubishi, Kia, Citroën, DS Automobiles and Maxus motor vehicles, and retails used cars under its Republic Auto brand. It is also the exclusive distributor of BYD electric forklifts in Singapore and entered into the leasing business in July 2019.
CYCLE & CARRIAGE BINTANG
Listed on Bursa Malaysia Securities Berhad, Cycle & Carriage Bintang Berhad is one of the leading Mercedes-Benz (59.1%) dealers in Peninsula Malaysia with a network of 13 outlets, providing sales and aftersales services for Mercedes-Benz passenger cars and commercial vehicles.
CYCLE & CARRIAGE MYANMAR
Cycle & Carriage Myanmar (60%) distributes, retails and provides aftersales services for Mercedes-Benz and Mazda passenger cars and commercial vehicles, as well as for FUSO commercial vehicles in Myanmar. Cycle & Carriage Myanmar has seven facilities across two cities in Myanmar.
- Cycle & Carriage
- Mercedes-Benz (Singapore, Malaysia, Myanmar)
- Mitsubishi (Singapore)
- Kia (Singapore)
- Citroën (Singapore)
- DS Automobiles (Singapore)
- Maxus (Singapore)
- BYD (Singapore)
- FUSO (Malaysia, Myanmar)
- Mazda (Myanmar)
- Tunas Ridean
- Toyota
- BMW
- Daihatsu
- Isuzu
- Honda (motorcycles)
- Key for Status
-
Distributor and Dealer
Dealer
TUNAS RIDEAN
Tunas Ridean (46.2%) is listed on the Indonesia Stock Exchange and is a leading automotive dealer group in Indonesia. With 89 motorcycle and 68 passenger car facilities across Indonesia, Tunas Ridean represents Toyota, Daihatsu, BMW and Isuzu passenger cars, as well as Honda motorcycles. In addition, Tunas Ridean provides automotive rental and fleet management services, and offers vehicle financing through its associate, Mandiri Tunas Finance.
Contribution to Underlying Profit
US$126.0m
-13% from US$144.1m in 2018
- Truong Hai Auto Corporation
- Refrigeration Electrical Engineering Corporation
- Siam City Cement
- Vinamilk
TRUONG HAI AUTO CORPORATION
Truong Hai Auto Corporation (“THACO”) (26.6%) is a multi-industry group headquartered in Vietnam. As one of the leading automotive players in Vietnam, THACO participates in R&D, manufacturing, assembly, logistics, distribution and retail. It manufactures and distributes Kia, Mazda, Peugeot, FUSO (trucks and buses), Frontier, Foton and Hyundai motor vehicles. It also distributes BMW and MINI. THACO is a developer of residential and commercial properties in District 2 of Ho Chi Minh City, Vietnam as well as owns residential and commercial assets in Yangon, Myanmar. Its agriculture business includes fruit trees, cereal, forestry and livestock in Vietnam, Laos and Cambodia. THACO also provides logistics services from warehousing and freight forwarding to seaport services.
- THACO
- Kia
- Mazda
- Peugeot
- FUSO
- Frontier
- Foton
- Hyundai
- BMW
- MINI
- Key for Status
-
Manufacturer/Assembler
Distributor and Dealer
REFRIGERATION ELECTRICAL ENGINEERING CORPORATION
Refrigeration Electrical Engineering Corporation (“REE”) (29.0%) is listed on the Ho Chi Minh Stock Exchange. It is a diversified business group in Vietnam with operations in power and utilities, real estate and mechanical and electrical engineering services. It has strategic interests in thermal, hydro, solar, wind businesses, and operates over 150,000 sqm of total lease area of Grade B office space in Vietnam.
SIAM CITY CEMENT
Siam City Cement Public Company Limited (“SCCC”) (25.5%) is listed on the Stock Exchange of Thailand. Operating in Thailand, South Vietnam, Sri Lanka, Cambodia and Bangladesh, SCCC holds market-leading positions in most of its markets. SCCC produces cement, concrete and aggregates, fiber cement and other building materials, as well as participates in industrial waste management solutions.
VINAMILK
Vietnam Dairy Products Joint Stock Company (“Vinamilk”) (10.6%) is the largest food & beverage company on the Ho Chi Minh Stock Exchange by market capitalisation. It has 12 farms and 15 factories in Vietnam, Laos, Cambodia and USA. Vinamilk is the country’s largest dairy producer with a dominant market share and a strong network of over 250,000 distribution points in Vietnam.
Sustainability
As a holding company, JC&C focuses on the governance of its business interests and the management of sustainability at a corporate office level.
JC&C partners with its portfolio companies to ensure sound corporate governance, professionalism and ethical business conduct, to build trust in shareholders, stakeholders and the public.
Download SustainabilityINVESTING IN SOUTHEAST ASIA’S YOUTH
By improving access to education and working alongside local partner universities, JC&C hopes to build stronger and more prosperous communities across the region.
In 2019, JC&C marked 120 years in Southeast Asia with the launch of the Jardine Cycle & Carriage Scholarship which aims to support young local talents across the region with full funding for their university education. This reaffirms JC&C’s commitment to invest in Southeast Asia for the long-term.
Through a series of endowments and donations that are long-term in nature, JC&C’s support will run in perpetuity or for a sustained period of eight to 12 years. In the next decade, about 60 Southeast Asian undergraduates will receive the Jardine Cycle & Carriage Scholarships.
Candidates are recommended by their respective universities based on academic merit, means testing, personal qualities and character that reflect high commitment to perform public duties and/or community involvement. By investing in their education, JC&C believes these students will not only advance their lives through education but will also go on further to improve the communities around them.
GOVERNANCE
* Singapore Governance and Transparency Index published by the National University of Singapore Business School.
JC&C is committed to upholding high standards of corporate governance across all its business operations, which is essential for the long-term sustainability of the organisation.
JC&C adheres to a Corporate Governance Policies Manual that sets out the terms of reference of the Board of Directors and its various committees to adhere to the principles prescribed in Singapore’s Code of Corporate Governance (“CCG”) and SGX Listing Rules. Periodic audits are also conducted by internal and external auditors, which are reported to the JC&C Audit Committee. Any issues are addressed by management.
As a member of the Jardine Matheson Group, JC&C adopts the Jardine Matheson Group Code of Conduct (“CoC”) that sets out the standar ds and values which employees should uphold when operating our businesses. All employees have easy access to the CoC through Workplace by Facebook, JC&C’s internal communications platform. The CoC is available on the JC&C corporate website too, along with the Reporting Matters of Serious Concern policy. In 2019, there were no cases of non-compliance with laws and regulations identified for JC&C.
A CORPORATE LEADER IN MENTAL HEALTH
JC&C strongly advocates for and contributes to the mental health community through MINDSET Care Limited ("MINDSET"), a Jardine Matheson Group registered charity. In 2019, JC&C contributed and pledged close to S$500,000 towards MINDSET to support its programmes and activities.
Apart from financial contributions, JC&C senior leaders actively participate in the Board and Steering Committee of MINDSET to set out clear objectives, policies and procedures to ensure good governance and management of funds. Every quarter, the Steering Committee meets to update and assess MINDSET’s progress and provide strategic guidance on MINDSET’s programmes and activities. JC&C is well-represented in the MINDSET Steering Committee, including advisors from the communications, legal and finance functions. MINDSET's Chairman is also the Group Managing Director of JC&C, while MINDSET's Chief Executive Officer is the Group General Counsel of JC&C.
JC&C also supports the communications, finance and legal functions of MINDSET. The JC&C Legal & Corporate Affairs department also serves as MINDSET’s secretariat to plan, manage and ex ecute MINDSET’s initiatives.
In addition, JC&C believes in the reintegration of mental health persons-in-recovery through employment. JC&C has provided 10 job placements for mental health persons-in-recovery and also approached its business partners and other corporations to do the same.
MINDSET'S HIGHLIGHTS
DigitalMINDSET was set up with TOUCH Community Services, with a support of S$1.6 million over five years from MINDSET. The intervention programme is targeted at managing pathological gamers' behaviour and excessive device use, as well as helping them regulate their emotions.
Raised S$1.5 million in five years for MINDSET Learning Hub (“MLH”) through The MINDSET Challenge & Carnival, the annual fund raiser. Since 2016, MLH has provided 247 job placements and trained 372 individuals.
Launched Art Therapy Meets with the Singapore Association for Mental Health to raise awareness through interactive art exhibitions and tours. The two-day exhibition was attended by 900 participants.
Partnered Guardian Health & Beauty to sell Christmas-packaged candies to raise greater awareness of mental health and wellbeing. A total of 3,000 boxes were sold in three months.
MINDSET and the Jardine Matheson Group co-organised and sponsored the International Together Against Stigma Conference 2019, which was held in Singapore for the first time.
Awarded the Charity Transparency Award for the fourth consecutive year for exemplary governance and transparency practices.
Opened the SGX Securities Market by striking the SGX Gong.