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Financial Statements And Related Announcement - Full Yearly Results

Financials Archive

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Full Year 2016 Financial Statements and Dividend Announcement

Profit & Loss


N.M. denotes "Not Meaningful"

Balance Sheet

Review of Performance

4th Quarter 2016 (4Q 2016) vs. 4th Quarter 2015 (4Q 2015)

Profit & Loss Statement

IMAS's 4Q 2016 revenue was S$386.4 million as compared to S$471.5 million in 4Q 2015. Lower revenue from IMAS was mainly due to lower passenger vehicle, heavy duty trucks and equipment sales. The Group (excluding IMAS) registered higher revenue of S$45.4 million as compared to S$39.4 million in 4Q 2015 and was mainly due to the sales of factory. The Consolidated Group revenue was S$431.8 million, 15.5% lower than 4Q 2015's S$511.0 million.

In line with the revenue, IMAS's 4Q 2016 cost of sales was S$313.7 million as compared to previous period's S$397.3 million while the Group's (excluding IMAS) cost of sales was S$33.4 million as compared to S$32.0 million in 4Q 2015. Accordingly, the Consolidated Group's cost of sales decreased from S$429.2 million in 4Q 2015 to 4Q 2016's S$347.1 million. The Consolidated Group's gross profit was S$84.6 million in 4Q 2016 as compared to S$81.7 million in 4Q 2015 and was mainly due to gain from sales of factory building.

IMAS's 4Q 2016 "other income" was S$26.4 million as compared to S$49.0 million in 4Q 2015. This was mainly due to lower sales incentives from car manufacturers and revaluation gain on the investment properties in the previous period. The Group's (excluding IMAS) "other income" was S$209.7 million as compared to S$1.5 million expenses in 4Q 2015 was mainly to the gain from divestment of MSL. The Consolidated Group's "other income" was S$187.5 million in 4Q 2016 as compared to 4Q 2015's S$1.8 million expenses. The revaluation gain on investment properties from IMAS was not taken up in the Consolidated Group's level as the Group adopt cost method for investment properties.

IMAS's 4Q 2016 "general and administrative expenses" was S$36.2 million as compared to S$35.3 million in 4Q 2015. Higher expenses were mainly due to higher provision for doubtful debts. The Group's (excluding IMAS) "general and administrative expenses" was S$9.1 million as compared to 4Q 2015's S$9.3 million. The Consolidated Group's "general and administrative expenses" was S$50.7 million as compared to 4Q 2015's S$49.5 million.

IMAS's 4Q 2016 "other operating expenses" was S$33.9 million as compared to 4Q 2015's S$36.7 million. Lower expenses were mainly due to lower packaging and delivery cost and lower provision for impairment on foreclosed assets. The Group's (excluding IMAS) "other operating expenses" was S$6.4 million as compared to 4Q 2015's S$5.7 million and was mainly due to higher professional fees. The Consolidated Group's 4Q 2016 "other operating expenses" was S$40.3 million as compared to 4Q 2015's S$42.4 million.

The Consolidated Group's 4Q 2016 "share of associate's result" was S$8.5 million loss as compared to 4Q 2015's S$7.6 million loss and was mainly due to lower losses from the automotive associated companies.

IMAS's 4Q 2016 "finance costs" was S$22.4 million as compared to 4Q 2015's S$20.8 million and the Group's (excluding IMAS) "finance costs" was S$11.1 million as compared to 4Q 2015's S$18.1 million. The Consolidated Group's "finance costs" was S$33.5 million as compared to S$38.8 million in 4Q 2015 and lower finance costs were mainly due to repayment of external bank borrowings.

IMAS's 4Q 2016 net loss was S$10.6 million as compared to S$14.2 million profit in 4Q 2015 and was mainly due lower vehicle revenue and revaluation gain on the investment properties. The Group's (excluding IMAS) net profit was S$187.0 million as compared to S$28.3 million loss in 4Q 2015. The Consolidated Group's net profit attributable to equity holders of the Company for 4Q 2016 was S$144.0 million profit as compared to 4Q 2015's S$57.8 million net loss.

12 months 2016 (FY 2016) vs. 12 months 2015 (FY 2016)

Profit & Loss Statement

IMAS's FY 2016 revenue was S$1,559.3 million as compared to FY 2015's S$1,864.6 million. Lower revenue was mainly due to lower passenger vehicle sales and heavy duty truck and equipment sales. The Group (excluding IMAS) registered lower revenue of S$160.4 million as compared to FY2015's S$163.5 million and was mainly due to lower revenue from utilities and resort segment. The Consolidated Group's FY 2016 revenue was S$1,719.7 million, representing 15.2% decline from FY 2015's S$2,028.1 million.

In line with lower revenue, IMAS's FY 2016 cost of sales was S$1,283.7 million as compared to S$1,582.1 million in FY 2015 and the Group (excluding IMAS) FY 2016's cost of sales was S$128.2 million as compared to FY 2015's S$133.1 million. Consolidated Group's cost of sales was S$1,412.0 million, representing 17.7% lower than FY 2015's S$1,715.2 million. Consequentially, the Group reported a lower gross profit of S$307.7 million in FY 2016 as compared to S$312.9 million in FY 2015.

IMAS's FY 2016's "other income" was S$63.3 million as compared to FY 2015's S$105.5 million. The difference arises mainly due to one-time gain on disposal of non-core investment, higher sales incentives from car manufacturer and higher revaluation gain on investment properties in FY 2015. The Group's (excluding IMAS) "other income" was S$219.8 million as compared to FY 2015's S$7.7 million and the significant increase was mainly to the gain on divestment of MSL. The Consolidated Group's "other income" was S$232.5 million in FY 2016 as compared to FY 2015's S$59.0 million. The revaluation gain on investment properties from IMAS was not taken up in the Consolidated Group's level as the Group adopt cost method for investment properties.

IMAS's FY 2016 "general and administrative expenses" was S$130.9 million as compared to FY 2015's S$125.5 million. Higher expenses were mainly due to higher provision for doubtful debts. The Group's (excluding IMAS) "general and administrative expenses" was S$22.1 million as compared to FY 2015's S$23.2 million. The Consolidated Group's "general and administrative expenses" was S$173.8 million as compared to FY 2015's S$168.4 million.

IMAS's FY 2016 "other operating expenses" was S$132.6 million as compared to FY 2015's S$146.7 million. Lower expenses were mainly due to lower cost of packaging and delivery and decease in provision for impairment on foreclosed assets. The Group's (excluding IMAS) "other operating expenses" was S$23.3 million as compared to S$21.6 million in FY 2015 was mainly due to higher manpower costs. The Consolidated Group's "other operating expenses" was S$155.9 million as compared to FY 2015's S$168.3 million.

The Consolidated Group's FY 2016 "share of associate's result" was S$14.4 million loss as compared to FY 2015's S$26.3 million loss and mainly due to lower losses from associated companies in the automotive segment.

IMAS's FY 2016 "finance costs" was S$83.7 million as compared to FY 2015's S$78.4 million. The Group's (excluding IMAS) "finance costs" was S$49.2 million in FY 2016 as compared to FY 2015's S$66.8 million. The Consolidated Group's "finance costs" was S$132.9 million as compared to FY 2015's S$145.2 million and lower financing cost was mainly due to repayment of external bank borrowings and redemption of April 2016 EMTN amounted to S$175 million.

IMAS's FY 2016 net loss was S$33.6 million as compared to S$2.3 million loss in FY 2015 and was mainly due to lower revaluation gain from investment properties and one-time gain on disposal of non-core investment in the previous period. The Group's (excluding IMAS) net profit was S$140.8 million as compared to S$93.1 million loss in FY 2015 and was mainly due to the gain on the divestment of MSL. The Consolidated Group's net profit attributable to equity holders of the Company was S$71.4 million for FY 2016 as compared to FY 2015's S$144.9 million net loss.

Balance Sheet

The Group's total assets of S$4,770.6 million as at 31 December 2016 were S$7.3 million higher than as at the previous year end. Other non-current assets decreased by S$150.8 million and was mainly due to the divestment of the Group's non-core investments. Current assets increased by S$227.2 million to S$2,303.9 and was mainly due to the increase in trade and other receivables and cash and bank balances arising from financing activities.

The Group's total liabilities of S$2,906.0 million as at 31 December 2016 were S$23.0 million lower than as at the previous year end mainly due to the decrease in the trade and other payables. The Group's borrowings and debt securities as at 31 December 2016 were S$2.4 billion of which S$1.0 billion relates to IMAS' car rental and financial services business.

Cash Flow Statement

Net cash generated from operating activities was S$102.1 million as compared to S$65.1 million last year.

Net cash generated in investing activities was S$152.8 million and was mainly due to proceeds from divestment of Group's non-core investments. The inflow was partially offset by capital expenditure.

Net cash used in financing activities was S$37.6 million, was mainly due from repayment of bank borrowings and bonds.

Commentary On Current Year Prospects

IMAS's passenger car results have been affected by the lack of new product launch versus the competitors. IMAS's commercial and heavy duty truck and equipment businesses continue to be affected by the reduced consumer and poor economic sentiment. However, contributions from its financing services, vehicle service, car rental and logistics businesses are continuing to grow.

The refocusing of our industrial parks business continues. The utilities business has benefited from lower energy prices that may not continue. We continue to pursue land sales in Bintan Resorts.