Highlights

• Earnings per share increased 40%
• Motor vehicle unit sales up 3% while motorcycle unit sales down 2%
• Mandiri Tunas Finance saw 32% lending growth

“The Group’s earnings were 40% higher, supported by stronger contributions from motor vehicle sales, Mandiri Tunas Finance and Rental businesses, partly offset by the lower contribution from the motorcycle business. The outlook for the rest of the year is expected to be challenging, with risks of weaker market demand alongside increasing competitive pressure.”
Group Results

Three months ended 31st March
(Rp bn) 2016 2015 Change (%)
 
Net revenue 2,833 2,479 14
Profit attributable to shareholders 104 74 40
   
Earnings per share (Rp) * 19 13 40

 

   As at
(Rp bn) 31stMarch

2016

31stDecember     2015 Change (%)
Equity attributable to shareholders 2,478 2,372 4
   
Net asset value per share (Rp) * 444 425 4

The financial results for the three months ended 31st March 2016 and 2015 have been prepared in accordance with Indonesian Financial Accounting Standards. These results were unaudited. The financial position as at 31st December 2015 was audited.

* Based on total number of shares currently in issue (5,580 million shares)
President Director’s Statement
Overview

The Group’s earnings were 40% higher, supported by stronger contributions from motor vehicle sales, Mandiri Tunas Finance and Rental businesses, partly offset by the lower contribution from the motorcycle business.

Performance

The Group’s revenue for the first quarter ended 31st March 2016 was Rp2.8 trillion, an increase of 14% from the previous year. Profit attributable to shareholders at Rp104.2 billion was 40% higher, while earnings per share was also 40% higher at Rp19.

Profit from the Group’s automotive business increased by 54% to Rp51.2 billion. The national car market fell by 5% to 267,227 units reflecting the sluggish economy, while the Group’s car sales were up 3% to 11,663 units, which also recorded improved margins from the launch of new models.  Tunas’ motorcycle sales, which are mainly located in Sumatra, were slightly lower at 42,301 units, compared to the national motorcycle market which declined by 6% to 1.5 million units.

Tunas Rental’s profit was 156% higher at Rp8.7 billion primarily due to an increased volume of disposals of ex-rental cars at higher average gains. Tunas Rental’s fleet size decreased 1% to 7,646 units.

The Group’s 49%-owned associate, Mandiri Tunas Finance, contributed a profit of Rp44.3 billion, 18% higher year-on-year.  The improvement was mainly due to higher net interest and fee income earned from a growing loan portfolio. New lending volume increased by 32% to Rp4.9 trillion.

Final Dividend

A final dividend of Rp12 per share (2014: Rp10 per share) has been approved at the Annual General Meeting held on 21st April 2016. The final dividend together with the interim dividend of Rp4  per share (2014: Rp4  per share) will bring the total dividend for 2015 to Rp16 per share (2014: Rp14 per share).

Prospects

The outlook for the rest of the year is expected to be challenging, with risks of weaker market demand alongside increasing competitive pressure.