PT ASTRA INTERNATIONAL TBK Full Year 2018

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PT ASTRA INTERNATIONAL TBK Full Year 2018 PT ASTRA INTERNATIONAL TBK Full Year 2018 - 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. 1 Highlights Auto Market Share Higher coal prices Net earnings per share Improved benefit heavy Lower crude palm Rp535 earnings equipment, oil prices contribution from mining adversely impact 15% 51% 75% financial services contracting and agribusiness mining revenue Net revenue 2018 239,205 (Rp bn) 16% 2017 206,057 Net income 2018 21,673 (Rp bn) 15% 2017 18,847 roup Results Results roup G Net earnings 2018 535 15% per share (Rp) For the year ended the31st year For December 2017 466 Shareholder’s funds 2018 136,947 11% (Rp bn) 123,780 2017 2018 3,383 roup Results Results roup Net asset value 11% G per share (Rp) As at 31st 31st at As December 2017 3,058 * Restated due to implementation of PSAK No. 69: Agriculture The financial results for the year ended 31st December 2018 and 2017 as well as the financial position as at 31st December 2018 and 2017 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. 2 Business Structure Automotive Property 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 Heavy Equipment, Infrastructure Information Financial Services Agribusiness Mining, Construction and Logistics Technology and Energy Automobile Heavy Construction Machinery Palm Oil Plantation Toll Road Document Solution •Astra Credit Equipment • United Tractors • Astra Agro Lestari • Marga Mandalasakti •Astra Graphia Companies • Surya Artha • Traktor Nusantara • Marga Harjaya •Toyota AstraOther Nusantara Refineries Infrastruktur IT Solution Finance Finance Mining Contracting • Tanjung Sarana Lestari • Marga Trans Nusantara • Astra Graphia • Komatsu Astra • Pamapersada Nusantara • Kreasijaya Adhikarya • Trans Marga Jateng Information Motorcycle Finance • Trans Bumi Serbaraja Technology • Federal Mining Commodity Trading • Lintas Marga Sedaya International Banking • Tuah Turangga Agung • Astra-KLK Pte.Ltd Office Services Solution Finance • Permata Bank • Agincourt Resources Sea Port • Astragraphia Xprins Cattle in Palm Oil • Pelabuhan Penajam Indonesia Mobile Lending Insurance Construction Industry Plantation Banua Taka Fintech • Asuransi Astra • Acset Indonusa • Astra WeLab Buana Logistics Digital Arta • Astra Life Energy • Serasi Autoraya • Bhumi Jati Power Market Position as at 31 December 2018 • Astra’s car market share decreased from 54% to 51%. • Astra’s motorcycle market share maintained at 75%. • Komatsu heavy equipment market share increased from 35% to 36%. Car Motorcycle Toyota Others 31% 25% Others 49% Heavy Equipment Honda Daihatsu 75% Isuzu 18% 2% Others Komatsu 13% 36% Sumitomo 5% Kobelco Source : AISI Source : Gaikindo 12% Hitachi 15% Caterpillar 19% 4 Source: United Tractors – Internal Market Research Corporate Actions Feb ‘18 • The Group invested US$150 million for a minority stake in GOJEK, 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. Apr‘18 • 50%-owned Astra Land Indonesia purchased a 3-hectare site in Jakarta’s Central Business District, for residential and commercial development. May‘18 • Permata Bank divested its 25% shareholding in Astra Sedaya Finance to the Group for Rp2.8 trillion, in order to strengthen the bank’s capital position and maximize its capital allocation for lending. 5 Corporate Actions Sep‘18 • Astra (through its subsidiary, Sedaya Multi Investama) and WeLab, a leading technology enabler for consumer lending in China established Astra WeLab Digital Arta, 60%-owned by the Group, to offer mobile lending products to retail consumers and provide financial technology solutions to enterprise customers in Indonesia. Dec ‘18 • United Tractors, through Danusa Tambang Nusantara, completed the acquisition of a 95% stake in Agincourt Resources (owner of the Martabe gold mine concession), for approximately US$1.0 billion. 6 Financial Performance 7 Consolidated Income Statement In Billion Rupiah 2018 2017* Change USD / IDR, average (full rupiah) 14,267 13,398 6% Net Revenue 239,205 206,057 16% Gross Profit 50,769 42,368 20% Selling, General and Administrative Expenses (23,901) (22,042) 8% Finance Costs - net (1,246) (60) 1,977% Foreign Exchange Losses - net (87) (9) 867% Other Income - net 2,424 2,186 11% Share of Results of Joint Ventures and Associates 7,036 6,694 5% Income Tax Expenses (7,623) (6,016) 27% Non-controlling Interests (5,699) (4,274) 33% Net Income 21,673 18,847 15% * Restated due to implementation of PSAK No. 69 : Agriculture “The Group achieved satisfactory results in 2018 but 2019 is likely to be a more challenging year, owing to macro economic uncertainties, the highly competitive car market and lower commodity prices.” - Prijono Sugiarto, President Director - 8 Divisional Net Revenue and Net Income Divisional Net Revenue 16% 239,205 206,057 44% 46% Automotive 8% 9% 35% 31% Financial Services 8% 9% 44%5% 46%5% Heavy Equipment, Mining, Construction & 2018 2017 Energy 8% 9% Agribusiness Divisional35% Net Income 31% 8% 15% 9% 21,6735% 18,847*5% Others (Infrastructure & Logistics, IT and Property) 2018 2017 39% 47% 22% 20% 31% 24% 5% 8% 3% 1% 2018 2017* *Restated due to implementation of PSAK No. 69 : Agriculture 9 Consolidated Balance Sheet • The net asset value per share was Rp3,383 as at 31st December 2018, 11% higher than at the end of 2017. • Net debt, excluding the Group’s financial services subsidiaries, was Rp13.0 trillion at the end of 2018, down from a net cash position of Rp2.7 trillion at the end of 2017, due mainly to the Group’s investments in its toll road businesses, a gold mining concession and GOJEK. The Group’s financial services subsidiaries had net debt of Rp47.7 trillion, compared with Rp46.1 trillion at the end of 2017. In Billion Rupiah 31-Dec-18 31-Dec-17* Change Cash and Cash Equivalents 25,193 31,574 (20%) Trade Receivables 31,226 25,420 23% Inventories 30,622 22,648 35% Financing Receivables 65,907 63,252 4% Investment in Joint Ventures and Associates 40,358 39,260 3% Fixed Assets 57,733 48,402 19% Other Assets 93,672 65,274 44% Total Assets 344,711 295,830 17% Short-term Borrowings 19,588 16,321 20% Trade Payables 42,263 29,468 43% Long-term Debt 66,326 58,657 13% Other Liabilities 42,171 34,879 21% Total Liabilities 170,348 139,325 22% Equity Attributable to the Owners of The Parent 136,947 123,780 11% Non – controlling Interests 37,416 32,725 14% Total Equity 174,363 156,505 11% Net Debt (Cash) 60,721 43,404 40% Net Debt (Cash) (Excl. Financial Services) 13,040 (2,654) N/A 10 * Restated due to implementation of PSAK No. 69 : Agriculture Consolidated Cash Flow As at 31 December 2018, Astra’s consolidated closing cash balance (incl. bank overdraft) was Rp24.9 trillion. In Billion Rupiah 2018 2017 Change Cash generated from operations 33,119 26,976 6,143 Tax Payments (7,044) (5,390) (1,654) Interest Received 1,617 1,699 (82) Net Cash flows provided from Operating Activities 27,692 23,285 4,407 Dividend Received 7,021 7,033 (12) Net Investment (21,179) (9,356) (11,823) Net Capex (14,029) (11,816) (2,213) Other Investing (1,544) (802) (742) Net Cash flows used in Investing Activities (29,731) (14,941) (14,790) Net Proceeds of Debt 8,900 3,560 5,340 Finance Costs Paid (1,723) (2,017) 294 Dividend Payments (10,197) (8,587) (1,610) Other Financing (1,853) 860 (2,713) Net Cash flows used in Financing Activities (4,873) (6,184) 1,311 (Decrease) / Increase in Cash (6,912) 2,160 (9,072) Opening Cash Balance (incl. Bank Overdraft) 31,574 29,356 2,218 Exchange Rate Adjustment 279 58 221 Closing Cash Balance (incl.
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