PT Astra International Tbk 1H 2014 Results Presentation

PT Astra International Tbk 1H 2014 Results Presentation

Disclaimer This report has been prepared by PT Astra International Tbk independently and is circulated for the purpose of general information only. It is not intended for the specific person who may receive this report. The information in this report has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made as to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice. 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 PT Astra International Tbk 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. Cautionary note on forward-looking statements: This report may contain statements regarding the business of PT Astra International Tbk and its subsidiaries that are of a forward-looking nature and are therefore based on management's assumptions about future developments. Forward-looking statements involve certain risks and uncertainties because they relate to future events. Actual results may vary materially from those targeted, expected or projected due to several factors. Potential risks and uncertainties includes such factors as general economic conditions, foreign exchange fluctuations, interest rate changes, commodity price fluctuations and regulatory developments. The reader and/or listener is cautioned to not unduly rely on these forward-looking statements. We do not undertake any duty to publish any update or revision of any forward-looking statements.

Highlights Indonesia economic growth slowed moderately to 5.2% in 1H 2014 (1H 2013: 5.8%), driven by lower export growth while consumption remained strong. Improved results from the Group s agribusiness and contract mining operations were partially offset by a decline in earnings from the Group s automotive businesses as margins declined in the car sector. The Group s financial services businesses recorded earnings up 15%, which included a Rp 440 billion one-time gain on the acquisition of 50% of Astra Aviva Life. Period ended 30 th June 2014 2013 Change Net Revenue (Rp bn) 101,528 94,279 8% Net Income (Rp bn)* 9,815 8,819 11% Net earnings per share (Rp) 242 218 11% As at 30 th June 2014 As at 31 st December 2013 Change Shareholders Funds (Rp bn)** 88,418 83,938 5% Net asset value per share (Rp)** 2,184 2,073 5% * Net income is profit attributable to owners of the parent. ** Shareholders' funds and Net asset value per share are based on equity attributable to owners of the parent. 2

Business structure Automotive Financial Services Heavy Equipment & Mining Agribusiness Infrastructure, Logistics & Others Information Technology Automobile Toyota Daihatsu Isuzu BMW Peugeot UD Trucks Motorcycle Honda Component Astra Otoparts Others Astraworld Automobile Astra Credit Companies Toyota Astra Finance Motorcycle Federal Intl. Finance Heavy Equipment SAN Finance Komatsu Astra Finance Banking Bank Permata Insurance Asuransi Astra Buana Astra Aviva Life Construction Machinery United Tractors Traktor Nusantara Mining Contractor PAMA Persada Nusantara Coal Mining PMM TTA ABP BEE ABB / ABJ DS / DN PJU Palm Oil Astra Agro Lestari Toll Road MMS : 72km MTN : 11km MHI : 41km Logistics SERA / TRAC Mobil 88 (used) SELOG TFLI Water Utility Water Utility Palyja Palyja Fuel Logistic Gresik Terminal Fuel Logistic Sea Port Gresik Eastkal Terminal Property Sea Port Menara Astra Anandamaya Eastkal Apartment Document Solution Astra Graphia IT Solution Astra Graphia Information Technology 3

Market position at 31 June 2014 Astra s car market share decreased from 53% to 52%, and Astra s motorcycle market share increased from 60% to 62%. Komatsu continue to maintain leading market position with 40% market share. Honda 13% Car Others 6% Toyota 35% Suzuki 4% Motorcycle Kawasaki 2% Nissan 3% Yamaha 32% Suzuki 13% Heavy Equipment Honda 62% Mitsubishi 12% Isuzu 2% Source : Gaikindo Daihatsu 15% Kobelco 14% Others 13% Komatsu 40% Source : AISI Hitachi 19% Caterpillar 14% Source: United Tractors Internal Market Research 4

Corporate actions Jan 14 Mar 14 Astra International and Aviva signed an agreement to establish Joint Venture Astra Aviva Life with ownership structure 50:50, to provide life insurance product in Indonesia. Bank Permata completed a Rp 1.5 trillion Right Issue VI at price of Rp 1,242 per share. Bank Permata acquired 25% share of PT Astra Sedaya Finance amounted to Rp 2.2 trillion. May 14 AI completed acquisition of 50% stake in Astra Aviva Life. Jun 14 Astra Graphia sold its 51% interest in AGIT Monitise Indonesia, and recorded a gain on disposal of Rp 42 billion. 5

Financial Performance

Consolidated income statement The Group s businesses produced mixed results in the first half, despite generally strong operating volumes. While the outlook for the remainder of the year is for a satisfactory operating performance, it is expected that there will continue to be heightened competition in the car market and a subdued outlook for coal prices. - Prijono Sugiarto, President Director In Billion Rupiah 1H14 1H13 Change USD / IDR, average 11,729 9,756 20% Revenue 101,528 94,279 8% Gross Profit 19,144 16,568 16% Operating Expenses (9,224) (8,673) 6% Other Income 1,413 1,292 9% Equity Income 3,329 3,067 9% Income Tax Expense (2,841) (2,125) 34% Non-controlling interest (2,006) (1,310) 53% Net Income 9,815 8,819 11% 7

Astra portfolio as at 30 June 2014 4W Automotive SO Toyota, Daihatsu, Isuzu Toyota Astra Motor Astra Daihatsu Motor Isuzu Astra Motor Indonesia 2W Automotive Astra Honda Motor Honda SO Ownership % 100 51 32 45 50 100 1H14 Share of NI % 1H13 Auto Non-Auto Auto Non-Auto 23 28 16 17 Component Astra Otoparts 80 3 6 Financial Services Astra Sedaya Finance Federal International Finance Toyota Astra Financial Services Komatsu Astra Finance SAN Finance Asuransi Astra Buana Permata Bank Astra Aviva Life Heavy Equipment & Mining United Tractors Pamapersada Nusantara 75 100 50 50 60 96 45 50 60 60 16 9 19 5 20 16 Agribusiness Astra Agro Lestari 80 11 7 Infrastructure, Logistics, IT SERA Palyja Marga Mandalasakti Astra Graphia 100 49 79 77 2 2 Increased Net Income contribution from Non-Auto segment, driven by Agribusiness and Heavy Equipment and Mining: 2001 2012 2013 1H14 Auto (Incl. auto related Financial Services) 89% 64% 68% 58% Non-Auto 11% 36% 32% 42% 8

Consolidated balance sheet Astra s net asset value of Rp 2,184 per share at 30th June 2014 was 5% higher than at the end of 2013. Net debt at 30th June 2014, exclusive of the Group s financial services subsidiaries, was Rp 4.2 trillion, compared to net debt of Rp 3.7 trillion at the end of 2013, a 14% increase. In Billion Rupiah 30-Jun-14 31-Dec-13 Change Cash and Cash Equivalents 17,160 18,557 (8%) Trade Receivables 22,947 19,843 16% Inventories 18,708 14,433 30% Financing Receivables 57,265 54,677 5% Investment in Jointly Controlled Entities and Associates 25,144 23,870 5% Fixed Assets 39,017 37,862 3% Other Assets 46,888 44,752 5% Total Assets 227,129 213,994 6% Short-term Borrowings 12,022 12,854 (6%) Trade Payables 20,681 17,275 20% Long-term Debt 51,456 51,669 (0%) Other Liabilities 30,177 26,008 16% Total Liabilities 114,336 107,806 6% Equity Attributable to Owners of The Parent 88,418 83,938 5% Non controlling Interest 24,375 22,250 10% Total Equity 112,793 106,188 6% Net Debt (46,318) (45,966) 1% Net Debt (Excl. Financial Services) (4,219) (3,687) 14% 9

Consolidated cash flow As at 30 June 2014, Astra ending cash balance was Rp 17 trillion. In Billion Rupiah 1H14 1H13 Change Cash from operations 9,866 13,110 (3,244) Tax Payments (2,612) (3,336) 724 Interest received 666 404 262 Dividends Received 2,858 2,100 758 Cash flow from Operating Activities + Dividends Received 10,778 12,278 (1,500) Net Capex (5,293) (4,867) (426) Net Investment (1,194) (1,174) (20) Other Investing (279) (152) (127) Cash flow for Investing Activities Dividends Received (6,766) (6,193) (573) Net proceed of Debt (539) 2,349 (2,888) Interest Payment (485) (562) 77 Dividend Payment (7,132) (7,051) (81) Other Financing 2,194 2,393 (199) Cash flow for Financing Activities (5,962) (2,871) (3,091) (Decrease) / Increase in Cash (1,950) 3,214 (5,164) Opening Cash Balance 18,555 10,815 7,740 Exchange Rate Adjustment 227 185 42 Closing Cash Balance (incl. Bank overdraft) 16,832 14,214 2,618 10

Business Updates

Automotive wholesale car market Astra s car sales rose by 4% with the market share decreasing from 53% to 52%. 1H14 642,311 1H13 602,214 Others 7.4% Others 307,831 47.9% Nissan 3.1% Honda 12.9% Suzuki 12.7% Commercial 171,707 26.7% Commercial 31.8% Others 281,032 46.7% Others 8.0% Nissan 5.2% Honda 8.2% Suzuki 12.5% Commercial 173,210 28.8% Commercial 33.5% Astra 334,480 52.1% Commercial 16.3% 4x2 & 4x4 81.3% Mitsubishi 11.9% Isuzu 2.3% Daihatsu 14.8% Toyota 34.9% 4x2 & 4x4 457,628 71.2% 4x2 & 4x4 59.5% Astra 321,182 53.3% Commercial 18.0% 4x2 & 4x4 79.7% Mitsubishi 12.9% Isuzu 2.7% Daihatsu 14.7% Toyota 35.8% 4x2 & 4x4 412,615 68.5% 4x2 & 4x4 62.1% M/S 1H14 Sedan 2.4% Sedan 2.0% Sedan 60.7% Sedan 2.2% Sedan 2.7% Sedan 43.8% AI Product Segment Brand Segment AI Product M/S M/S 1H13 AI Product Segment Brand Segment AI Product M/S Source: Gaikindo 12

Automotive car product launches During first semester 2014, Astra launched 11 new models and 7 revamped models. Toyota All New Corolla Altis January 2014 Luxio February 2014 All New Yaris March 2014 320i Gran Turismo Luxury May 2014 Avanza Luxury June 2014 Isuzu FVZ 34K MX June 2014 13

Automotive wholesale motorcycle market Astra Honda Motor s sales increased by 11%, with it s market share increasing from 60% to 62%. 1H14 7% 1H13 4,202,296 3,923,695 Others, 2.0% Suzuki,4.0% Suzuki, 5.3% Yamaha, 1,329,967 31.6 % Yamaha, 1,277,781 32.6% Honda, 2,623,175 62.4% Scooter 1,876,415 71.5% Sport/Others 34.3 % Scooter 1,876,415 69.2% Sport & Others 16.3% Others, 1.9% Sport/Others 8.9% Sport/Others Scooter 7.6% 2,710,555 64.5% Honda, 2,364,297 60.3% Scooter 1,717,700 72.7% Sport/Others 28.0% Scooter 1,717,700 68.7% Sport & Others 16.3% Scooter 2,498,641 63.7% Cub 512,344 19.5% Cub 512,344 63.4% Cub 807,732 19.2% Cub 466,995 19.8% Cub 225,668 59.5% Cub 784,760 20.0% Brand 1H14 Honda Segment Honda Product M/S Segment Source: AISI Brand 1H13 Honda Segment Honda Product M/S Segment 14

Automotive motorcycle product launches During first semester of 2014, Astra Honda Motor launched 11 revamped models. Honda Mega Pro PGM-FI January 2014 Honda Supra-X 125 PGM-FI February 2014 Honda Vario PGM-FI March 2014 Honda Beat-FI May 2014 Honda CBR 250 R May 2014 Honda Spacy-FI June 2014 15

Automotive - components Astra Otoparts, the Group s 80%-held component business, saw higher sales volumes although net income fell by 11% to Rp 454 billion on lower manufacturing margins. Revenue (IDR billion) 6,227 26% 11% Net Income (IDR billion) 511 454 9% 37% 54% 4,961 8% 40% 52% After Market, 45% Export, 7% OEM, 48% 243 371 211 140 After Market, 29%, Export, 6% OEM, 65%, 1H14 1H13 1H14 1H13 Export After Market OEM Equity Income Consolidated 16

Financial services Net income from the Group s financial services businesses increased by 15% to Rp 2.5 trillion, driven by the strong growth from FIF and one-time gain from the acquisition of a 50% stake in Astra Aviva Life. Unit Financed 1H14 1H13 % ACC (new & used cars) 108,030 95,047 14 Auto TAFS 32,548 32,124 1 Total 4W 140,578 127,171 11 FIF (Incl.Electronics) 1,434K 1,234K 16 SANF 991 1,479 (33) HE KAF 95 199 (52) Total HE 1,086 1,678 (35) Amount Financed (Rp bio) 1H14 1H13 % ACC 13,934 13,056 7 TAFS 4,877 4,883 0 Auto Total 4W 18,811 17,939 5 FIF 12,092 9,878 22 Total Auto 30,903 27,817 11 SANF 1,379 1,663 (17) HE KAF 591 904 (35) Total HE 1,970 2,567 (23) * Incl. Joint Financing Asuransi Astra Buana 1H14 Gross Written Premium up by 9% year on year to Rp 2 trillion RBC : 149%, requirement 120% Bank Permata 1H14 consolidated net income decreased by 2% to Rp 800 billion Loan book grew by 19% to Rp 128 trillion LDR 92% & CAR 14% Gross-NPL ratio was up from 1.2% to 1.5% 17

Heavy equipment & mining United Tractors, 59.5%-owned, reported a 42% improvement in net income to Rp 3.3 trillion, driven by strong performance from its mining contracting business. Revenue (Rp bio) Mining Contracting 27,533 2,889 11% 24,901 1,981 16,203 14,436 Coal Prod: 20% 401.3 415.6 OB Removal: 3% 8,441 8,484 59.9 50.1 1H14 1H13 1H14 1H13 Construction Machinery Mining Contracting Mining Coal Production (mn tonnes) Overburden Removal (mn bcm) Komatsu Unit Sales Coal Mines: Reserves and Sales 10% 51% 2,452 3,432 2,207 Est. Combined Coal 515 Reserves (Mio Tons)* 486 TTA 30 1,690 564 2,277 618 PMM 3 196 ABP 9 309 1,459 ABB/ABJ 101 1,177 1,742 794 DS/DN 45 818 BEE 177 1H14 1H13 1H14 1H13 PJU 45 Mining Forestry Construction Agro Total 409 PMM & Asmin TTA & DN (all in thousand tonnes) * As at 2013 year end 18

Agribusiness Astra Agro Lestari, which is 79.7%-held, reported net income of Rp 1.4 trillion, up 91 % mainly due to higher average CPO price by 31%. CPO sales decreased by 10% to 675 thousand tonnes, primarily due to the commencement of operations of Astra Agro Lestari s refinery in West Sulawesi, which sold 92,000 tonnes of olein during the first half. 8,008 1,099 Revenue (Rp bio) 5,496 100 CPO Yield (tonne/ha) 46% 8% 6,909 Export Local 5,396 2.42 2.25 CPO Prod: 21% CPO Production & Sales ( K tonnes) 853 1H14 1H13 1H14 1H13 675 1H14 92 704 752 1H13 Production Sales Olein Sales - CPO Sales 10% 283 34 Area Maturity ( K Ha) * Immature 275 37 249 Mature 238 1H14 * Incl. plasma plantation 4% 1H13 19

Infrastructure, logistics and others TRAC Rental Car (unit) 5% 29,545 31,223 Serasi Autoraya s revenue improved, despite the number of vehicles under contract at its TRAC car rental business being lower by 5% at 29,545. 1H14 1H13 MMS Vehicle Traffic Volume ( K unit) 4% 20,830 19,958 Marga Mandalasakti, the Tangerang Merak 72.5km toll road operator, reported a 4% increase in traffic volumes to 21 million vehicles, with 14% higher average tariffs. 1H14 1H13 20

Appendices

Divisional revenue and net income Divisional Revenue In Billion Rupiah 1H14 1H13 % Chg Automotive 54,188 53,208 2% Financial Services 7,489 6,707 12% Heavy Equipment 27,458 24,864 10% Agribusiness 8,008 5,495 46% Infrastructure, Logistics & Others 3,556 3,105 15% Information Technology 829 900 (8%) Total 101,528 94,279 8% Divisional Net Income In Billion Rupiah 1H14 1H13 % Chg Automotive 4,003 4,413 (9%) Financial Services 2,478 2,147 15% Heavy Equipment 1,988 1,410 41% Agribusiness 1,091 571 91% Infrastructure, Logistics & Others 171 223 (23%) Information Technology 84 55 53% Total 9,815 8,819 11% 22

Car products launched in 1H14 Models Launched Launching Time Engine Capacity Prices (IDR mn) Car Toyota All New Altis Jan 14 1,800cc 375 410 BMW 520d Modern Jan 14 2,000cc 838* BMW 520i Modern Jan 14 2,000cc 858* BMW 528i Luxury Jan 14 2,000cc 998* BMW 535i M Sport Jan 14 3,000cc 1,298* Isuzu Giga FVZ Long Wheel Base Feb 14 7,800cc 798 Daihatsu Luxio Feb 14 1,500cc 157.4 182.6 Toyota All New Yaris Mar 14 1,500cc 219.2 256.1 BMW M235i Mar 14 3,000cc 928* BMW X5 xdrive 35i M Sport Apr 14 3,000cc 1,348* BMW 320i Gran Turismo Luxury May 14 2,000cc 859* BMW 428i Convertible Sport May 14 2,000cc 1,088* BMW 428i Gran Coupe M Sport May 14 2,000cc 968* Toyota Nav - 1 May 14 2,000cc 386.7-412.5 BMW M3 Jun 14 3,000cc 1,699* BMW M4 Coupe Jun 14 3,000cc 1,799* Isuzu Giga FVZ 34K MX Jun 14 7,800cc 820 Toyota Avanza Luxury Jun 14 1,300cc 1,500cc 184.6-191.6 *Off the road 23

Motorcycle products launched in 1H14 Models Launched Launching Time Engine Capacity Prices (IDR mn) Motorcycle Honda Revo Series FI Jan 14 110cc 12.7 14.1 Honda Mega Pro FI Jan 14 150cc 20.5 Honda Supra X 125 FI Feb 14 125cc 15.4 16.4 Honda Verza Feb 14 150cc 17.1 17.9 Honda Blade 125 FI Mar 14 125cc 15.4 16.1 Honda Vario FI Mar 14 110cc 15.2 Honda Vario Techno 125 FI Mar 14 125cc 16.1 16.8 Honda BeAT FI May 14 110cc 12.9 14.3 Honda CBR 250 R May 14 250cc 53.7 55.2 Honda Scoopy FI May 14 110cc 15.2 Honda Spacy FI Jun 14 110cc 13.4 24

Motorcycle Car National market data (summary) 1H14 1H13 Wholesale Astra Wholesale Astra Sedan 12,976 60.7% 16,389 43.8% 4X2 & 4X4 457,628 59.5% 412,615 62.1% Pick Up/ Trucks/ Bus 165,846 31.2% 165,581 33.3% Double Cabin 5,861 47.7% 7,629 37.2% Total 642,311 52.1% 602,214 53.3% Cub 807,732 63.4% 784,760 59.5% Scooter 2,710,555 69.2% 2,498,641 68.7% Sport & Others 684,009 34.3% 640,294 28.0% Total 4,202,296 62.4% 3,923,695 60.3% Major Brands Toyota - Vios/Limo, Altis, Camry; Honda - City, Civic, Accord; Mercedes - E Series, C Series Toyota - Avanza, Innova, Rush, Agya Daihatsu - Xenia, Terios, Ayla; Nissan - Grand Livina, March, Evalia; Suzuki - Ertiga, APV, Splash; Honda Mobilio, CR-V, Jazz, Freed; Mitsubishi Pajero Sport, Mirage, Outlander Sport Mitsubishi Canter, L-300, Strada; Daihatsu Gran Max; Suzuki Carry, APV; Isuzu Elf, Panther, Giga; Toyota Dyna,Hi-Lux, Hi-Ace Toyota Hilux; Mitsubishi Strada; Ford Ranger; Isuzu D-Max Honda - Supra X 125, Revo Series, Blade; Yamaha - Jupiter MX, Vega RR, Jupiter Z; Suzuki Smash Titan, Shooter, Shogun Axello 125 Honda - BeAT, Vario, Scoopy; Yamaha - Mio, Xeon, X-Ride; Suzuki Nex, Hayate, Let s Yamaha - V-ixion, Byson, Scorpio Z; Honda - CB 150 R, Verza, New Mega Pro; Suzuki - Satria F 150, Thunder 125 Source: Gaikindo & AISI 25

For further information please contact: Investor Relations of PT Astra International Tbk - Attn: Iwan Hadiantoro / Tira Ardianti / Christian P: (+62 21) 652 2555 F: (+62 21) 6530 4953 E: iwan.hadiantoro@ai.astra.co.id / tira.ardianti@ai.astra.co.id / christian@ai.astra.co.id 26