Overview

JC&C saw strong underlying profit growth of 6% in 2023, mainly supported by record results from Astra.

Astra contributed US$1,019 million to the Group’s underlying profit, 12% higher than the previous year, reflecting improved performances from most of its businesses.

Direct Motor Interests contributed US$68 million, an increase of 8%, with higher profits from Tunas Ridean in Indonesia and Cycle & Carriage Bintang in Malaysia.

The contribution from the Group’s Other Strategic Interests was 2% down at US$84 million, due to lower earnings reported by REE, offset by higher profits in SCCC.

THACO contributed US$36 million, 57% down from the previous year, mainly due to lower automotive profits.

Corporate costs fell from US$48 million to US$47 million, mainly due to the translation of foreign currency loans, which led to a US$18 million increase in foreign exchange gains, partly offset by a US$13 million increase in net financing charges.

The Group’s underlying profit attributable to shareholders increased by 6% to US$1,160 million. After accounting for non-trading items, the Group’s profit attributable to shareholders was US$1,215 million, 64% higher than the previous year. The non-trading items recorded in the year mainly comprised an US$81 million gain from the sale and leaseback of properties under Cycle & Carriage Singapore, partly offset by unrealised fair value losses of US$20 million related to non-current investments.

The Group’s consolidated net debt position, excluding the net borrowings within Astra’s financial services subsidiaries, was US$1,145 million at the end of 2023, compared to a net cash position of US$893 million at the end of 2022. This increase was mainly due to the deployment of capital at Astra in a number of strategic projects as well as continued investment in the organic capital expenditure needs of its ongoing businesses, and enhanced dividends paid in 2023 at Astra. Net debt within Astra’s financial services subsidiaries increased from US$2.8 billion at the end of 2022 to US$3.4 billion. JC&C corporate net debt was US$1.3 billion, down from US$1.5 billion at the end of 2022.

Dividends

The Board is recommending a final one-tier tax-exempt dividend of US¢90 per share (2022: US¢83 per share) which, together with the interim dividend of US¢28 per share (2022: US¢28 per share), will produce a total dividend for the year of US¢118 per share (2022: US¢111 per share), 6% higher than 2022.

Sustainability

JC&C is a long-term investor in Southeast Asia and remains committed to the region’s development. We firmly believe in sustainable growth to deliver positive impact to the communities we serve, and we continue to commit to embedding sustainability as a core component of our overall corporate strategy.

The Group is focusing in particular on decarbonising our businesses and enhancing the long-term resilience of our portfolio. This involves making increased investments, which support the transition to a low-carbon future. Moving forward, we plan to continue maximising our renewable energy generation on-site, as well as exploring electrification opportunities.

People

On behalf of the Board, I would like to express our appreciation to our teams across the region for their continuing dedication and effort.

I would like to welcome Mikkel Larsen, who joined the Board in January 2024 and was also appointed as a member of the Audit & Risk Committee. Mikkel is currently the Chief Executive Officer of Climate Impact X, a global exchange and marketplace for high-quality carbon credits. We look forward to Mikkel’s contribution to the Group.

Outlook

The Group expects a challenging year ahead in view of lower commodity prices and only a mild recovery of sentiment in Vietnam.

The Group’s businesses, nevertheless, have made good progress in 2023 and will remain focused on their strategic priorities to build a solid foundation for strong long-term growth.



Ben Keswick

Chairman