PT ASTRA INTERNATIONAL TBK FULL YEAR 2019 - Results Presentation 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. 2 Highlights Net earnings per share Astra’s automotive wholesales Higher earnings contribution from Heavy equipment, coal mining Rp536 financial services and gold mining and agribusiness activities 0% 3% 8% operation impacted by lower commodity prices Net revenue 1Q192019 237,166 1% (Rp bn) 1Q182018 239,205 Net income* 2019 21,707 0% (Rp bn) 2018 21,673 Net earnings 2019 536 0% per share (Rp) 2018 535 As at 31st 147,847 Shareholder’s funds** December 2019 8% (Rp bn) As at 31st 136,947 December 2018 177,044 As at 31st 3,652 Net asset value December 2019 8% per share** (Rp) As at 31st December 2018 3,383 * 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 year ended 31st December 2019 and 2018 as well as the financial position as at 31st December 2019 and 2018 have 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. 3 Business Structure Automobile Automobile Financing Construction Machinery Palm Oil Plantation Toll Road Infrastructure Document Solution Commercial Properties • Toyota • Astra Credit Companies • United Tractors • Astra Agro Lestari • Marga Mandalasakti • Astra Graphia • Menara Astra • Lexus • Toyota Astra Financial Services • Traktor Nusantara • Marga Harjaya Infrastruktur • Samadista Karya • Daihatsu Refineries • Marga Trans Nusantara IT Solution • Astra Astari Sejahtera • Isuzu Motorcycle Financing Mining Contracting • Tanjung Sarana Lestari • Trans Marga Jateng • Astra Graphia • Astari Marga Sarana • BMW • Federal International Finance • Pamapersada Nusantara • Kreasijaya Adhikarya • Lintas Marga Sedaya Information • Peugeot • Jasamarga Surabaya Mojokerto Technology Trading Properties • UD Trucks Mobile Lending Fintech Mining Commodity Trading • Brahmayasa Bahtera • Astra WeLab Digital Arta • Tuah Turangga Agung • Astra-KLK Pte.Ltd Infrastructure Solutions Office Services Solution • Astra Land Indonesia Motorcycle • Agincourt Resources • Astra Infra Solutions • Astragraphia Xprins • Astra Modern Land • Honda Heavy Equipment Financing Cattle in Palm Oil Indonesia • Award Global Infinity • Surya Artha Nusantara Finance Construction Industry Plantation Logistics Infrastructure Component • Komatsu Astra Finance • Acset Indonusa • Agro Menara Rachmat • Pelabuhan Penajam Banua Taka • Astra Otoparts Banking Energy Logistics Other Automotive • Permata Bank • Bhumi Jati Power • Serasi Autoraya Related Product & Service • Solusi Mobilitas Bangsa • AstraWorld General Insurance • Astra Digital Internasional • Asuransi Astra Buana Life Insurance • Astra Aviva Life 4 Astra Market Position for Full Year ended 31 December 2019 Car Motorcycle Heavy Equipment 52% 76% 30% 2019 2019 2019 2018 : 51% 2018 : 75% 2018 : 36% Brand Market Share Brand Market Share Brand Market Share Toyota 32% Honda 76% Komatsu 30% 2019 Daihatsu 17% Others 24% Caterpillar 19% 2019 Isuzu 3% Source : Ministry of Industry Hitachi 19% 2019 Others 48% Kobelco 13% Source : Gaikindo Sumitomo 6% Others 13% Source: United Tractors – Internal Market Research 5 Corporate Actions Feb‘19 As part of the collaboration between the Group and Gojek, a joint venture company was formed to provide fleet for the ride-hailing online transportation system of GoCar in Indonesia. This strategic collaboration was taken following an additional US$100 million of equity investment by Astra in Gojek in January 2019, which brought the Astra’s total investment in Gojek to US$250 million. May‘19 Astra Tol Nusantara acquired 44.5% shares in Jasamarga Surabaya Mojokerto, the concession holder of Surabaya Mojokerto toll road. Nov‘19 Astra Tol Nusantara (ATN) through Baskhara Utama Sedaya, together with the Canada Pension Plan Investment Board, completed the acquisition process of Lintas Marga Sedaya (LMS) stake which was marked by the signing of a purchase agreement of 55% shares of PLUS Expressways International Berhad. Dec‘19 Astra and Standard Chartered PLC signed a Conditional Share Purchase Agreement to sell both stakes in PermataBank to Bangkok Bank Public Company Limited. Completion of the transaction is subject to certain conditions, including approvals by the shareholders of Bangkok Bank and approvals from the regulators in Indonesia and Thailand. The inaguration of the Group's Kunciran-Serpong toll road, which is managed by Marga Trans Nusantara. 6 Financial Performance 7 Consolidated Income Statement In Billion Rupiah 2019 2018 Change USD / IDR, average 14,131 14,267 (1%) Net Revenue 237,166 239,205 (1%) Gross Profit 50,239 50,769 (1%) Selling, General and Administrative Expenses (24,055) (23,901) 1% Finance Costs - net (2,429) (1,246) 95% Foreign Exchange Losses - net (57) (87) (34%) Other Income - net 3,269 2,424 35% Share of Results of Joint Ventures and Associates 7,087 7,036 1% Income Tax Expenses (7,433) (7,623) (2%) Non-controlling Interests (4,914) (5,699) (14%) Net Income 21,707 21,673 0% “The Group’s full year result in 2019 was impacted by relatively weak domestic consumption and low commodity prices, but benefited from an improved performance from financial services and the strong contribution from the Group’s newly acquired gold mine. The outlook for 2020 remains challenging given the uncertain external macro environment, competition in the car market and weak commodity prices. Nevertheless, we are encouraged that the Group is well positioned to benefit from any improvement in economic conditions.” 8 Divisional Net Revenue and Net Income Divisional Net Revenue (Rp bn) 237,166 239,205 44% 1% 44% Automotive Automotive Automotive 9% 8% Financial Services 35% 35% Financial Services Financial Services 7% 8% 5% 5% 44% 46% Heavy Equipment, Mining, Construction & 44% 44% 46% 46% 2019 2018 Heavy Equipment, Mining,Heavy Construction Equipment, & Mining, Construction & Energy Divisional Net Income (Rp bn) 8% Energy Energy 9% Agribusiness 8% 8% 9% 9% 21,707 21,67335% Agribusiness Agribusiness 31% 35% 35% 31% 31%8% 9% 5% 5% Others (Infrastructure & Logistics, IT and 8% 8% 9% 9% 5% 5% 5% 5% Others (Infrastructure &Others Logistics, (Infrastructure IT and & Logistics, IT and Property) 39% 0% 39%2018 2017 Property) Property) 2018 2018 27% 2017 22%2017 31% 31% 3%* 5% 3% 2019 2018 *Total Agribusiness & Others 9 Consolidated Balance Sheet • The net asset value per share at 31st December 2019 was Rp3,652, 8% higher than at the end of 2018. • Net debt, excluding the Group’s financial services subsidiaries, was Rp22.2 trillion at 31st December 2019, compared with Rp13.0 trillion at the end of 2018, mainly due to the Group’s additional toll road and Gojek investments, as well as capital expenditure in its mining contracting business. The Group’s financial services subsidiaries had net debt totalling Rp45.8 trillion at 31st December 2019, compared with Rp47.7 trillion at the end of 2018. In Billion Rupiah 31-Dec-19 31-Dec-18 Change Cash and Cash Equivalents 24,330 25,193 (3%) Trade Receivables 29,546 31,226 (5%) Inventories 28,174 30,622 (8%) Financing Receivables 68,534 65,907 4% Investment in Joint Ventures and Associates 45,683 40,358 13% Fixed Assets 62,337 57,733 8% Other Assets 93,354 93,672 0% Total Assets 351,958