PT ASTRA INTERNATIONAL TBK. First Quarter Results Presentation

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1 PT ASTRA INTERNATIONAL TBK First Quarter Results Presentation

2 Disclaimer The materials in this presentation have been prepared by PT Astra International Tbk (Astra) and are general background information about Astra Group business performances current as at the date of this presentation and are subject to change without prior notice. This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account their particular investment objectives, financial situation or needs. Before acting on any information, readers should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, readers should seek independent financial advice. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Astra businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements; past performance is not a reliable indication of future performance. Astra does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. We disclaim any responsibility or liability whatsoever arising which may be brought or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither Astra and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise. 1

3 Highlights Net earnings per share Rp123 Auto Market Share 2% 49% 73% Higher coal prices benefited heavy equipment, mining contracting and mining volumes Agribusiness net income down due to lower prices Group Results For the year ended 31 st March * Change Net revenue (Rp bn) 55,822 48,780 14% Net income (Rp bn) ** 4,980 5,078 (2%) Net earnings per share (Rp) (2%) As at 31 st March 2018 As at 31 st December 2017* Change Shareholders funds (Rp bn) *** 128, ,780 4% Net asset value per share (Rp) *** 3,186 3,058 4% * Restated due to implementation of PSAK No. 69 : Agriculture ** Net income is profit attributable to owners of the parent, i.e. Astra International shareholders. *** Shareholders' funds and net asset value per share are based on equity attributable to owners of the parent. The financial results for the three months ended 31st March 2018 and 2017 as well as the financial position as at 31st March 2018 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2017 has been prepared in accordance with Indonesian Financial Accounting Standards and audited in accordance with the auditing standards established by the Indonesian Institute of Certified Public Accountants. 2

Business Structure Automotive Property Automobile Toyota Daihatsu Isuzu BMW Peugeot UD Trucks Motorcycle Honda Component Astra

Heavy Equipment, Mining, Construction and Energy Agribusiness Infrastructure and Logistics Information Technology Automobile Astra

Komatsu Astra Finance Banking Permata Bank Insurance Asuransi Astra Buana Astra Life Construction Machinery United Tractors Traktor

Jati Power Palm Oil Plantation Astra Agro Lestari Refineries Tanjung Sarana Lestari Kreasijaya Adhikarya Tanjung Bina Lestari

Ltd Cattle in Palm Oil Plantation Agro Menara Rachmat Toll Road Marga Mandalasakti Marga Harjaya Infrastruktur Marga Trans Nusantara

4 Business Structure Automotive Property Automobile Toyota Daihatsu Isuzu BMW Peugeot UD Trucks Motorcycle Honda Component Astra Otoparts Others AstraWorld Menara Astra Brahmayasa Bahtera Samadista Karya Astra Land Indonesia Astra Modern Land Financial Services Heavy Equipment, Mining, Construction and Energy Agribusiness Infrastructure and Logistics Information Technology Automobile Astra Credit Companies Toyota Astra Other Finance Motorcycle Federal International Finance Heavy Equipment Surya Artha Nusantara Finance Komatsu Astra Finance Banking Permata Bank Insurance Asuransi Astra Buana Astra Life Construction Machinery United Tractors Traktor Nusantara Mining Contracting Pamapersada Nusantara Coal Mining Tuah Turangga Agung Construction Industry Acset Indonusa Energy Bhumi Jati Power Palm Oil Plantation Astra Agro Lestari Refineries Tanjung Sarana Lestari Kreasijaya Adhikarya Tanjung Bina Lestari Commodity Trading Astra-KLK Pte.Ltd Cattle in Palm Oil Plantation Agro Menara Rachmat Toll Road Marga Mandalasakti Marga Harjaya Infrastruktur Marga Trans Nusantara Trans Marga Jateng Trans Bumi Serbaraja Lintas Marga Sedaya Sea Port Pelabuhan Penajam Banua Taka Logistics Serasi Autoraya Document Solution Astra Graphia IT Solution Astra Graphia Information Technology Office Services Solution Astragraphia Xprins Indonesia

5 Market Position as at 31 March 2018 Astra s car market share decreased from 57% to 49%. Astra s motorcycle market share decreased from 77% to 73%. Komatsu maintained its leading market position with 34% market share. Car Motorcycle Suzuki 1% Kawasaki 2% Toyota 29% Yamaha 24% Others 51% Heavy Equipment Isuzu 2% Daihatsu 18% Others 20% Komatsu 34% Honda 73% Source : Gaikindo Source : AISI Kobelco 16% Hitachi 14% Caterpillar 16% Source: United Tractors Internal Market Research 4

6 Corporate Actions Feb 18 The Group invested US$150 million for a minority stake in GO-JEK, Indonesia s leading multi-platform technology group, which provides access to a wide range of services from transportation and payments to food delivery, logistics and other on-demand services. 5

7 Financial Performance 6

8 Consolidated Income Statement The Group is expected to continue benefiting from stable coal prices, but in the car market, competitive pressures are likely to intensify. - Prijono Sugiarto, President Director - In Billion Rupiah * Change IDR / USD, average 13,625 13,337 2% Net Revenue 55,822 48,780 14% Gross Profit 11,350 10,012 13% Selling, General and Administrative Expenses (5,346) (4,939) 8% Other Income % Share of Results of Joint Ventures and Associates 1,536 1,893 (19%) Income Tax Expenses (1,610) (1,277) 26% Non-controlling Interests (1,354) (994) 36% Net Income 4,980 5,078 (2%) * Restated due to implementation of PSAK No. 69 : Agriculture 7

9 Divisional Net Revenue and Net Income Divisional Net Revenue In Billion Rupiah Change Automotive 25,676 23,891 7% Financial Services 4,680 4,505 4% Heavy Equipment, Mining, Construction and Energy 18,972 13,602 39% Agribusiness 4,446 4,491 (1%) Infrastructure and Logistics 1,484 1,787 (17%) Information Technology % Property % Total 55,822 48,780 14% Divisional Net Income In Billion Rupiah * Change Automotive 2,109 2,288 (8%) Financial Services 1,060 1,124 (6%) Heavy Equipment, Mining, Construction and Energy 1, % Agribusiness (55%) Infrastructure and Logistics (23) 67 (134%) Information Technology % Property 6 42 (86%) Total 4,980 5,078 (2%) * Restated due to implementation of PSAK No. 69 : Agriculture 8

10 Consolidated Balance Sheet The net asset value per share was Rp3,186 at 31st March 2018, 4% higher than at the prior year end. Net debt, excluding the Group s financial services subsidiaries, was Rp2.4 trillion compared with net cash of Rp2.7 trillion at 31st December 2017, due mainly to the Group s toll road and GO-JEK investments and capital expenditure in its mining contracting business. The Group s financial services subsidiaries had net debt of Rp44.8 trillion, compared with Rp46.1 trillion at the end of In Billion Rupiah 31-Mar Dec-17* Change Cash and Cash Equivalents 32,304 31,574 2% Trade Receivables 26,980 25,420 6% Inventories 19,086 19,504 (2%) Financing Receivables 62,822 63,252 (1%) Investment in Joint Ventures and Associates 39,307 39,260 0% Fixed Assets 50,006 48,402 3% Other Assets 75,839 68,418 11% Total Assets 306, ,830 4% Short-term Borrowings 16,999 16,321 4% Trade Payables 28,170 29,468 (4%) Long-term Debt 62,433 58,657 6% Other Liabilities 35,539 34,879 2% Total Liabilities 143, ,325 3% Equity Attributable to the Owners of The Parent 128, ,780 4% Non controlling Interest 34,230 32,725 5% Total Equity 163, ,505 4% Net Debt (Cash) 47,128 43,404 9% Net Debt (Cash) (Excl. Financial Services) 2,352 (2,654) (189%) * Restated due to implementation of PSAK No. 69 : Agriculture 9

11 Consolidated Cash Flow As at 31 March 2018, Astra s consolidated closing cash balance (incl. bank overdraft) was Rp32.3 trillion. In Billion Rupiah Change Cash generated from operations 6,270 4,845 1,425 Tax Payments (1,113) (809) (304) Interest Received Net Cash flow provided from Operating Activities 5,537 4,416 1,121 Dividend Received 2 39 (37) Net Capex (3,458) (2,606) (852) Net Investment (4,850) (5,682) 832 Other Investing (150) (102) (48) Net Cash flow used in Investing Activities (8,456) (8,351) (105) Net Proceeds of Debt 4,079 5,781 (1,702) Finance Costs Paid (520) (539) 19 Dividend Payments (330) - (330) Other Financing 275 (11) 286 Net Cash flow used in Financing Activities 3,504 5,231 (1,727) Increase in Cash 585 1,296 (711) Opening Cash Balance (incl. Bank Overdraft) 31,574 29,356 2,218 Exchange Rate Adjustment 145 (31) 176 Closing Cash Balance (incl. Bank Overdraft) 32,304 30,621 1,683 10

12 Business Updates 11

13 Automotive Wholesale Car Market Astra s The wholesale car sales market were 10% for cars higher grew at by 421,000 3% at 292,000 units, resulting units. Astra s in an increase car sales, in however, market share were from 12% lower 50% to at 54%. 142,000 units, due to the impact of intense competition which resulted in a decline in market share from 57% to 49%. 3% 292, ,760 Others 150,076 / 51.4% LCGC 58,615 / 20.1% LCGC 64,411/ 22.7% Commercial Others 71,831 / 24.6% Other Brands Commercial, 150,076 / 51.4% 122,407/ 43.1% 58,021/ 20.5% Other Brands 122,407/ 43.1% Isuzu, 4,005 / 1.4% Astra 141,952 / 48.6% 4x2 & 4x4 159,708 / 54.7% Sedan 1,874 / 0.6% Isuzu, 5,395 / 1.8% Daihatsu 51,607 / 17.7% Toyota 84,931 / 29.1% Astra 161,353/ 56.9% 4x2 & 4x4 158,678/ 55.9% Sedan 2,650 / 0.9% Daihatsu 49,730/ 17.6% Toyota 107,611/ 37.9% M/S Market Segment Brand M/S Source: Gaikindo Market Segment Brand 12

14 Automotive Car Product Launches During first quarter 2018, Astra launched 7 new models and 2 revamped models. BMW 520i Luxury (NEW) January 2018 Daihatsu Sirion (NEW) February 2018 Toyota Yaris February 2018 Lexus RX350L (NEW) March 2018 Peugeot 3008 SUV (NEW) March 2018 Isuzu Giga FVZ 34 (NEW) March

15 Automotive Wholesale Motorcycle Market The wholesale market for motorcycles increased by 4% to 1.5 million units. Astra Honda Motor s domestic sales were flat at 1.1 million units, mainly due to inventory management ahead of several key model launches, which resulted in its market share decreasing from 77% to 73%. 4% Kawasaki 2.2% Suzuki 1% Kawasaki 1.7% Yamaha 341, % 1,457,494 Sport/Others 7.2% 1,401,538 Sport/Others Sport/Others 53.6% 9.9% Suzuki 1.3% Sport/Others Sport/Others Yamaha 53.9% 10.1% 285, % Sport/Others 7.1% Honda 1,069, % Scooter 921, % Scooter 921, % Scooter 1,214, % Honda 1,073, % Scooter 926, % Scooter 926,212 80% Scooter 1,157, % Brand Cub 69, % Honda Segment Cub 69, % Honda Product M/S Cub 98, % Segment Source: AISI Brand Cub 70, % Honda Segment Cub 70, % Honda Product M/S Cub 102, % Segment 14

16 Automotive Motorcycle Product Launches During first quarter 2018, Astra Honda Motor launched 1 new model and 5 revamped models. Honda CMX BeAT 500 Sporty Rebel January March Honda BeAT Street January 2018 Honda CBR 150 R January 2018 Honda CB 150 Verza (New) February 2018 Honda Scoopy February 2018 Honda Supra X 125 FI March

17 Automotive Components Astra Otoparts, the Group s components business, reported net income 1% lower at Rp146 billion, despite an 11% increase in revenue. The decline in net income was mainly due to reduced contributions from its joint venture and associate companies, which were impacted by forex translation losses. Revenue (Rp bio) Net Income (Rp bio) Share of Results of Joint Ventures and Associates (Rp bio) 11 % 1% (21%) 3,838 3,

18 Financial Services Net income from the Group s financial services division decreased by 6% to Rp1.1 trillion, due to lower contribution from Permata Bank. Auto HE Unit Financed % ACC 49,594 47,596 4 TAF 19,085 30,069 (38) Total ACC & TAF 68,679 77,665 (12) FIF (Incl.Electronics) SANF KAF (19) Total HE (1) Amount Financed (Rp bio) % ACC 7,488 7,288 3 TAF 3,750 5,449 (31) Auto Total ACC & TAF 11,238 12,737 (12) FIF (Incl.Electronics) 8,487 7,926 7 Total Auto 19,725 20,663 (5) SANF HE KAF * (11) Total HE (6) Permata Bank consolidated net income of Rp164 billion (: consolidated net income of Rp453 billion, benefited from a one-off gain on the sale of nonperforming loans). Loan book increased by 4% YoY to Rp100 trillion. LDR 89%, Total CAR 18%, and CET-1 ratio 15%. Gross and Net NPL were relatively stable at 4.6% and 1.7% respectively, with NPL coverage ratio of 194%. Asuransi Astra Buana Higher net income by 15% to Rp247 billion. Gross Written Premium up by 9% YoY to Rp1.2 trillion. RBC: 228% ** vs regulatory minimum of 120%. * Average exchange rate USD/IDR: 13,625 () & 13,337 () **Tentative figure, waiting confirmation from OJK 17

19 Heavy Equipment, Mining, Construction and Energy United Tractors, which is 59.5%-owned, reported net income 69% higher at Rp2.5 trillion. The increase was mainly due to improved performances in its construction machinery and mining contracting businesses, as well as its mining operations, as a result of increased coal prices. Revenue (Rp bio) Mining Contracting 19, ,460 7, ,082 6,299 6,862 4, Construction Machinery Mining Contracting Coal (mn tonnes) Overburden (mn bcm) Mining Construction Industry 13% 19% 8% 60% Komatsu Unit Sales 1,171 38% 39% % 24% 20% 41% 13,679 Mining Forestry Construction Agro Coal Sales (incl. Trading) 2,593 Coal Production 6% 36% 1, Total Coal Sales (all in thousand tonnes) New Contracts Secured (Rp tn) OB Removal 22% General Contractor New Contracts In, Acset still has approximately Rp9.8 trillion outstanding contract works carried over from previous years %

20 Agribusiness Astra Agro Lestari, which is 79.7%-owned, reported net income 55% lower at Rp355 billion, primarily due to lower crude palm oil prices. Achieved average crude palm oil prices were 12% lower at Rp7,855/kg, while sales of crude palm oil and its derivatives were 17% higher at 480,000 tonnes. Revenue (Rp bio) CPO Yield (tonne/ha) 4,446 1% 4,491 8% 1,703 1,475 Export Local 2,744 3, CPO Production ( K tonnes) CPO & Derivatives Sales ( K tonnes) Average CPO Price (Rp/Kg) 0% 17% 12% ,855 8, CPO Production CPO & Derivatives Sales

21 Infrastructure and Logistics The Group s infrastructure and logistics division reported a net loss of Rp23 billion, compared with a net profit Rp67 billion in the first quarter of 2017, as results were affected by initial losses on the Cikopo-Palimanan toll road acquired in the first half of MMS Toll Revenue (Rp bio) MHI Toll Revenue (Rp bio) LMS Toll Revenue (Rp bio) TMJ Toll Revenue (Rp bio) [72.5km] [40.5km] [116.8km] [72.6km]* 14% 1,101% 4% 36% * 40.1km is in operation SERA Vehicles under Contract (units) Astra Toll Roads Portfolio (Km) 4% Toll Road Concessions As at 31 March ,629 23,474 In Operation Under Development 84.4 Total

22 Information Technology Astra Graphia, which is 76.9%-owned, reported net income higher at Rp35 billion due to higher revenues across all its business segments. Astra Graphia Revenue (Rp bio) Astra Graphia Net Income (Rp bio) 630 8% 9% 578 5% 38% 41% 38% % 54% 1,134 59% 37% 1,543 AGDS AGIT AXI

Property Net Income (Rp bio) 86% 42 6 The Group s property division reported a net income of Rp6 billion compared to net income of Rp42 billion in the prior year.

23 Property Net Income (Rp bio) 86% 42 6 The Group s property division reported a net income of Rp6 billion compared to net income of Rp42 billion in the prior year. This was primarily due to lower development earnings recognised from its Anandamaya Residences project, reflecting lower percentage completion in the final stages of the project. Arumaya, the Group s 60%-held residential development project located in South Jakarta, commenced marketing in March 2018 and is scheduled for completion in %-owned Astra Land Indonesia, which owns 67% of Astra Modern Land, is in the process of developing a 67-hectare site in East Jakarta and has started marketing activities for the first two clusters of landed houses in the first quarter of

24 Appendices 23

25 Car Product Launches 2018 Models Launched Launching Period Engine Capacity Prices (Rp mio) BMW 520i Luxury Jan 18 2,000cc 1,009* Daihatsu Sirion Feb 18 1,300cc Toyota Yaris Feb 18 1,500cc Lexus RX 350L Mar 18 3,500cc 2,135 Peugeot 3008 Mar 18 1,600cc 697 Isuzu Giga FVR34 Mar 18 7,800cc Isuzu Giga FVM34 Mar 18 7,800cc Isuzu Giga FVZ34 Mar 18 7,800cc Toyota Alphard Mar 18 2,500-3,500cc ,773.4 * Off the Road price 24

26 Motorcycle Product Launches 2018 Models Launched Launching Period Engine Capacity Prices (Rp mio) Honda BeAT Sporty Jan cc Honda BeAT Street Jan cc 15.9 Honda CBR 150 R Jan cc Honda CB 150 Verza Feb cc Honda Scoopy Feb cc 17.8 Honda Supra X 125 FI Mar cc

27 Motorcycle Car National Automotive Market Data Wholesale Astra Wholesale Astra Non LCGC 233,455 43% 219,536 50% LCGC 58,573 71% 64,224 81% Total 292,028 49% 283,760 57% Cub 98,408 71% 102,334 69% Scooter 1,214,733 76% 1,157,241 80% Sport 144,353 54% 141,953 54% Total 1,457,494 73% 1,401,538 77% Major Brands Toyota Avanza, Innova, Fortuner; Honda HR-V, Mobilio, BR-V, Daihatsu Xenia, Terios, Gran Max Astra Toyota Calya, Agya; Astra Daihatsu Sigra, Ayla; Honda - Brio Satya; Datsun - GO Panca; Suzuki - Karimun Wagon R Honda - Revo Series, Supra Series, Blade; Yamaha Jupiter MX King, Jupiter ZX, Vega Force; Suzuki Smash Honda - BeAT, Vario, Scoopy; Yamaha - N-Max, Mio, Aerox; Suzuki Address, Nex Honda - CB 150 R Street Fire, Verza, CBR 150R; Yamaha - V-ixion R - 15, Xabre, Byson; Suzuki - Satria F 150; Kawasaki Ninja 26

28 Equity Research Contact Details No Brokerage House Analyst Name Contact Number Address 1 Bahana Sekuritas Andri Ngaserin andri@bahana.co.id 2 BCA Sekuritas Aditya Eka Prakasa aditya.prakasa@bcasekuritas.co.id 3 BoA Merrill Lynch Swati Chopra swati.chopra@baml.com 4 Ciptadana Sekuritas Asia Arief Budiman budimanarief@ciptadana.com 5 Citigroup Investment Research Ferry Wong ferry.wong@citi.com 6 CLSA Indonesia Sarina Lesmina sarina.lesmina@clsa.com 7 Credit Suisse Sekuritas Indonesia Jahanzeb Naseer jahanzeb.naseer@credit-suisse.com 8 Danareksa Sekuritas Stefanus Darmagiri stefanus.darmagiri@danareksa.com 9 DBS Vickers Maynard Priajaya Arif maynard.arif@id.dbsvickers.com 10 Deutsche Verdhana Securities Joko Sogie joko.sogie@db-gmresearch.com 11 Goldman Sachs Pramod Kumar pramod.kumar@gs.com 12 HSBC Global Research Tarun Bhatnagar tarunbhatnagar@hsbc.com.sg 13 Indo Premier Sekuritas Raditya Immanzah raditya.immanzah@ipc.co.id 14 J.P. Morgan Securities Indonesia Aditya Srinath aditya.s.srinath@jpmorgan.com 15 Kresna Securities Franky Rivan franky.rivan@kresnasecurities.com 16 Macquarie Sekuritas Indonesia Robert Pranata Robert.pranata@macquarie.com 17 Mandiri Sekuritas Ariyanto Kurniawan ariyanto.kurniawan@mandirisek.co.id 18 Maybank Kim Eng Securities Isnaputra Iskandar isnaputra.iskandar@maybank-ke.co.id 19 NH Korindo Sekuritas Arnold Sampeliling arnold@nhsec.co.id 20 Nomura Indonesia Elvira Tjandrawinata elvira.tjandrawinata@nomura.com 21 Onix Capital Bagus Hananto bagus.hananto@ocap.co.id 22 RHB Sekuritas Indonesia Andrey Wijaya andrey.wijaya@id.oskgroup.com 23 Samuel Sekuritas Akhmad Nurcahyadi akhmad.nurcahyadi@samuel.co.id 24 Sinarmas Sekuritas Evan Lie Hadiwidjaja evan.hadiwidjaja@sinarmassekuritas.co.id 25 Sucor Sekuritas Raditya Immanzah raditya.immanzah@sucorsekuritas.com 26 Trimegah Securities Willinoy Sitorus willinoy.sitorus@trimegah.com 27 UBS Securities Indonesia Ronald Liem ronald.liem@ubs.com 28 UOB Kay Hian Securities Stevanus Juanda stevanusjuanda@uobkayhian.com 29 Valbury Asia Securities Budi Rustanto budi.rustanto@valbury.com 30 Yuanta Securities Indonesia Yusuf Ade Winoto yusuf.winoto@yuanta.co.id 27

29 For further information please contact: PT Astra International Tbk Corporate Investor Relations P: (+62 21) F: (+62 21) E: 28

The Group is expected to continue benefiting from stable coal prices, but in the car market, competitive pressures are likely to intensify.

The Group is expected to continue benefiting from stable coal prices, but in the car market, competitive pressures are likely to intensify. PRESS RELEASE 24th April 2018 PT ASTRA INTERNATIONAL TBK 2018 FIRST QUARTER FINANCIAL STATEMENTS Highlights Net earnings per share down 2 at 123 Lower market share for cars and motorcycles Higher coal