Nine Months 2017 - Results Presentation PT ASTRA INTERNATIONAL TBK Disclaimer The materials in this presentation have been prepared by PT Astra International Tbk (Astra) and are general background information about current Astra Group business performances 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 Highlights Heavy equipment and mining contracting Positive 26% 55% 75% volumes benefit from strong coal prices contribution from Net earnings per share Permata Bank Agribusiness improved with higher crude Rp350 Auto Market Share palm oil prices and sales volume 9 months ended 30th September 2017 2016 Change Net revenue (Rp bn) 150,225 132,294 14% Net income (Rp bn)* 14,184 11,277 26% Net earnings per share (Rp) 350 279 26% As at 30th As at 31st Change September 2017 December 2016 Shareholders’ funds (Rp bn)** 119,265 111,951 7% Net asset value per share (Rp)** 2,946 2,765 7% * 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 nine months ended 30th September 2017 and 2016 as well as the financial position as at 30th September 2017 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2016 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 Automobile Motorcycle • Menara Astra • Toyota •Honda • Brahmayasa Bahtera • Daihatsu • Samadista Karya • Isuzu Component • Astra Land Indonesia • BMW •Astra Otoparts • Astra Modern Land • Peugeot • UD Trucks Others •AstraWorld Automobile Heavy Equipment Construction Machinery Palm Oil Plantation Toll Road Document Solutions •Astra Credit • SAN Finance • United Tractors • Astra Agro Lestari • Marga Mandalasakti •Astra Graphia CompaniesOther • Komatsu Astra • Traktor Nusantara • Marga Harjaya Infrastruktur •Toyota Astra Finance Refineries • Marga Trans Nusantara IT Solutions Finance Mining Contracting • Tanjung Sarana Lestari • Trans Marga Jateng • Astra Graphia Banking • Pamapersada Nusantara • Kreasijaya Adhikarya • Trans Bumi Serbaraja Information Motorcycle • Permata Bank • Tanjung Bina Lestari • Lintas Marga Sedaya Technology • Federal Mining International Insurance • Tuah Turangga Agung Commodity Trading Seaport Office Solutions Finance • Asuransi Astra • Astra-KLK Pte.Ltd • Pelabuhan Penajam • Astragraphia Xprins Buana Construction Industry Banua Taka Indonesia • Astralife • Acset Indonusa Cattle in Palm Oil Plantation Logistics • Agro Menara Rahmat • Serasi Auto Raya Market Position as at 30 September 2017 • Astra’s car market share increased from 54% to 55% and Astra’s motorcycle market share increased from 73% to 75%. • Komatsu maintained its leading market position with a 36% market share, 3% higher than the same period last year. Car Motorcycle Kawasaki Suzuki 1% 1% Yamaha Others 23% 45% Toyota 36% Heavy Equipment Others 16% Honda Isuzu Daihatsu 75% 2% 17% Komatsu 36% Source : Gaikindo Kobelco Source : AISI 15% Hitachi Caterpillar 16% 17% Source: United Tractors – Internal Market Research 4 Corporate Actions Jan ‘17 • Astratel Nusantara completed the acquisition of an initial 40% interest in PT Baskhara Utama Sedaya, which owns 45% of the operator of the fully operational 116km Cikopo-Palimanan toll road, and has subsequently conditionally agreed to acquire the remaining 60% interest. Mar‘17 • United Tractors through Unitra Persada Energia owned 25% Bhumi Jati Power, which will develop and operate two 1,000 MW thermal power plants in Central Java, completed its project financing agreement with lenders. This build, operate and transfer project is expected to cost approximately US$4.2 billion and is scheduled to start commercial operation in 2021. Bhumi Jati Power is a joint venture with Sumitomo Power Corporation and Kansai Electric Power. Mar‘17 • United Tractors through its subsidiary Tuah Turangga Agung, completed the acquisition of an 80.1% stake in PT Suprabari Mapanindo Mineral, a coking coal company in Central Kalimantan. 5 Corporate Actions May‘17 • Astratel Nusantara acquired of the remaining 60% interest in PT Baskhara Utama Sedaya, which owns 45% stakes of the fully operational 116km Cikopo- Palimanan toll road. The total acquisition cost of the Group’s ownership of PT Baskhara Utama Sedaya is approximately Rp5 trillion. • Astratel Nusantara increased its stakes in the 73km Semarang-Solo toll road from 25% to 40%. Jun‘17 • Permata Bank completed its Rp3.0 trillion right issue, which was fully subscribed. Sep‘17 • Astra Land Indonesia entered into an agreement to increase its shareholding in Astra Modern Land from 50% to 67%. • Astratel Nusantara divested its 49% shares in PAM Lyonnaise Jaya, a water concession with five years left to run. 6 Financial Performances 7 Consolidated Income Statement “The outlook for the rest of the year is expected to remain positive as the results will continue to benefit from the increased commodity prices, although there are concerns over greater competition in the car market as well as increased provisioning in certain of the Group’s financing activities.” - Prijono Sugiarto, President Director - In Billion Rupiah 9M17 9M16 Change IDR / USD, average 13,349 13,323 0% Net Revenue 150,225 132,294 14% Gross Profit 30,673 25,737 19% Selling, General and Administrative (15,808) (13,976) 13% Expenses Other Income 1,064 1,210 (12%) Shares of Results of Joint Ventures and 5,594 3,331 68% Associates Income Tax Expenses (4,102) (3,071) 34% Non-controlling Interests (3,237) (1,954) 66% Net Income 14,184 11,277 26% 8 Astra Portfolio as at 30 September 2017 9M17 9M16 Share of Net Income (%) Ownership % Auto Non-Auto Auto Non-Auto 4W Automotive SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 50 24 31 Astra Daihatsu Motor 32 Isuzu Astra Motor Indonesia 50 2W Automotive Astra Honda Motor 50 19 20 Honda SO 100 Component Astra Otoparts 80 2 2 Financial Services Astra Sedaya Finance 86 2001 2015 2016 9M17 Federal International Finance 100 Toyota Astra Financial Services 50 Komatsu Astra Finance 50 20 1 24 (6) Auto SAN Finance 60 (Incl. auto related 89% 76% 85% 65% Asuransi Astra Buana 96 Financial Services) Permata Bank 45 Astra Life 50 Heavy Equipment & Mining United Tractors 60 Non-Auto 11% 24% 15% 35% Pamapersada Nusantara 60 Tuah Turangga Agung 60 24 17 Acset Indonusa 30 Traktor Nusantara 50 Agribusiness Astra Agro Lestari 80 8 8 Infrastructure, Logistics, IT & Property Marga Mandalasakti 79 SERA 100 Astra Graphia 77 Menara Astra 100 2 4 Brahmayasa Bahtera 60 Samadista Karya 100 9 Consolidated Balance Sheet • Net asset value per share was Rp2,946 at 30th September 2017, 7% higher than at the end of 2016. • Net cash, excluding the Group’s financial services subsidiaries, was Rp1.2 trillion at the end of September 2017. This was significantly lower compared with net cash of Rp6.2 trillion at the end of 2016 mainly due to investments in toll roads, power plants and property during the period. The Group’s financial services subsidiaries had net debt of Rp46.9 trillion, compared with Rp47.7 trillion at the end of 2016. In Billion Rupiah 30-Sep-17 31-Dec-16 Change Cash and Cash Equivalents 29,068 29,357 (1%) Trade Receivables 24,958 19,426 28% Inventories 20,258 17,771 14% Financing Receivables 64,507 64,639 0% Investment in Joint Ventures and Associates 38,306 33,987 13% Fixed Assets 46,763 43,237 8% Other Assets 67,613 53,438 27% Total Assets 291,473 261,855 11% Short-term Borrowings 17,866 18,764 (5%) Trade Payables 28,201 22,489 25% Long-term Debt 56,955 52,146 9% Other Liabilities 39,541 28,550 38% Total Liabilities 142,563 121,949 17% Equity Attributable to the Owners of The Parent 119,265 111,951 7% Non – controlling Interest 29,645 27,955 6% Total Equity 148,910 139,906 6% Net Debt (Cash) 45,753 41,553 10% Net Cash (Excl. Financial Services) (1,167) (6,193) (81%) 10 Consolidated Cash Flow As at 30th September 2017, Astra’s ending consolidated cash balance (incl.