PT Astra International Tbk 1H 2013 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 Overview The Group’s net earnings declined by 9%, with improved contributions from the financial services and mining contracting businesses offset by lower contributions from the automotive, heavy equipment and agribusiness segments. Group results Period ended 30th June 2013 2012 Change Net Revenue (Rp bn) 94,279 95,919 (2%) Net Income (Rp bn)* 8,819 9,678 (9%) Earnings per share (Rp) 218 239 (9%) As at 30th As at 31st Change June 2013 December 2012 Shareholders’ Funds (Rp bn)** 75,061 71,201 5% Net asset value per share (Rp)** 1,854 1,759 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 Agribusiness Infrastructure Information & Mining & Logistics Technology Automobile Automobile Construction Palm Oil Toll Road Document •Toyota Machinery Solution •Daihatsu •Astra Credit •MMS : 72km Companies •Isuzu •United Tractors •MTN : 11km Astra Graphia •Toyota Astra •BMW •Traktor Astra Agro Lestari •MHI : 41km Finance •Peugeot Nusantara •UD Trucks Motorcycle Logistics IT Solution Motorcycle Federal Intl. Mining Contractor •SERA / TRAC Finance •Mobil 88 (used) PAMA Persada •SELOG Astra Graphia Honda Nusantara •TFLI Information Heavy Equipment Technology Water Utility Component •SAN Finance •Komatsu Astra Coal Mining Finance Palyja Astra Otoparts •PMM Banking • TTA • ABP Fuel Logistic • BEE Others Bank Permata • ABB / ABJ Gresik Terminal • DS / DN Astraworld • PJU Insurance Sea Port Asuransi Astra Buana Eastkal 3 Market position at 30 June 2013 • Astra’s car market share declined from 56% to 53%, while Astra’s motorcycle market share increased from 57% to 60% • Komatsu maintains its leading market position, despite tight competition and weaker demand for heavy equipment Car Motorcycle Others Kawasaki 8% Honda Suzuki 2% 5% 8% Toyota 36% Nissan 5% Yamaha Suzuki 33% Honda 12% 60% Heavy Equipment Others Mitsubishi Daihatsu 2% Isuzu Kobelco 13% 15% 3% 17% Komatsu Source : Gaikindo 41% Source : AISI Hitachi 22% Caterpillar 18% Source: United Tractors – Internal Market Research 4 2Q13 corporate actions • AOP acquired 51% share of PT Pakoakuina (Pako), a wheel rim April player for both 2W and 4W for Rp 700 billion May • AOP completed right issue of Rp 3.0 trillion, with AI participation of Rp 2.9 trillion June • AI placed 15.7% of AOP shares at a price of Rp 3,750 to increase the liquidity of the stock, generating Rp 2.8 trillion in gross proceeds 5 Financial Performance 1H13 environment Economic conditions continue to support domestic demand, but the Group’s operations are facing increased competition in the car market, higher labour costs and lower commodity prices Automotive demand remained favorable, benefiting from rising income, with increasing competition as a consequence of the introduction of additional domestic capacity New minimum down-payment requirements in automotive Shariah-financing had a negligible impact on automotive sales in the first-half results; it is too early to determine the impact of the fuel price increase on automotive sales Strong financial services performance, benefiting from loan book growth and a favorable credit environment Reduced demand in the heavy equipment business due to soft commodity prices. Improved coal mining contracting performance driven by increased mine site capacity Increased palm oil production, amidst lower average CPO prices 7 Consolidated income statement “While the outlook for domestic demand remains positive, it is expected that increased competition in the car market, higher employee costs and lower commodity prices will continue to impact results in the second half of the year.” - Prijono Sugiarto, President Director In Billion Rupiah 1H 2013 1H 2012 Change USD / IDR, average 9,756 9,250 5% Revenue 94,279 95,919 (2%) Gross Profit 16,568 17,915 (8%) Operating Expenses (8,673) (7,923) 9% Other Income 1,292 952 36% Equity Income 3,067 2,937 4% Income Tax Expense (2,125) (2,512) (15%) Non-controlling interest (1,310) (1,691) (23%) Net Income 8,819 9,678 (9%) 8 Astra portfolio for the period 6 months to June 2013 Ownership Share of NI % % 1H 2013 1H 2012 Auto Non-Auto Auto Non-Auto 4W Automotive SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 51 28.0 30.5 Astra Daihatsu Motor 32 Net income contribution Auto vs. Isuzu Astra Motor Indonesia 45 Non-Auto segments: 2W Automotive 16.6 14.7 Astra Honda Motor 50 2001 2012 1H 12 1H 13 Honda SO 100 Component Auto (Incl. auto 80 5.5 5.2 Astra Otoparts related Financial 89% 64% 65% 69% Financial Services Services) Astra Sedaya Finance 100 Federal International Finance 100 50 19.0 5.3 14.3 4.3 Toyota Astra Financial Services Non-Auto 11% 36% 35% 31% Komatsu Astra Finance 50 SAN Finance 60 Asuransi Astra Buana 96 Permata Bank 45 Heavy Equipment & Mining United Tractors 60 16.0 19.3 Pamapersada Nusantara 60 Agribusiness Astra Agro Lestari 80 6.5 7.9 Infrastructure, Logistics, IT SERA 100 Palyja 49 3.1 3.8 Marga Mandalasakti 79 Astra Graphia 77 9 Consolidated balance sheet • Astra’s net asset value of Rp 1,854 per share* at 30th June 2013 was 5% higher than at the end of 2012 • Overall net debt at 30th June 2013, excluding financial services subsidiaries, was Rp 6.2 trillion, compared to net debt of Rp 8.9 trillion at the end of 2012. DER (incl. FinSer) was maintained at 47% In Billion Rupiah 30-Jun-13 31-Dec-12 Change Cash and Cash Equivalents 14,512 11,055 3,457 Trade Receivables 18,502 16,443 2,059 Inventories 14,780 15,285 (505) Financing Receivables 52,045 48,631 3,414 Investments in Associates and Jointly Controlled Entities 21,328 19,801 1,527 Fixed Assets 36,435 34,326 2,109 Other Assets 39,557 36,733 2,824 Total Assets 197,159 182,274 14,885 Short-term Borrowings 10,031 7,202 2,829 Trade Payables 16,224 12,685 3,539 Long-term Debt 49,801 49,555 246 Other Liabilities 25,566 23,018 2,548 Total Liabilities 101,622 92,460 9,162 Equity Attributable to The Owners of The Parent 75,061 71,201 3,860 Non – controlling Interest 20,476 18,613 1,863 Total Equity 95,537 89,814 5,723 Net Debt 45,320 45,702 (382) Net Debt (Excl. Financial Services) 6,166 8,918 (2,752) * Net asset value per share is based on equity attributable to the owners of the parent. 10 Consolidated cash flow The cash inflow from operating activities for the first-half of 2013 was Rp 12.3 trillion, an increase of Rp 4.3 trillion due to working capital improvement. In Billion Rupiah 1H 2013 1H 2012 Change Cash from operations 13,094 7,919 5,175 Tax Payments (3,336) (3,096) (240) Interest received 404 365 39 Dividend Received 2,100 2,784 (684) Cash flow from Operating Activities + Dividend Received 12,262 7,972 4,290 Net Capex (4,851) (6,208) 1,357 Net Investment (1,174) (706) (468) Other Investing (152) (347) 195 Cash flow for Investing Activities (6,177) (7,261) 1,084 Net proceed of Debt 2,349 6,793 (4,444) Interest Payment (562) (482) (80) Dividend Payment (7,051) (6,664) (387) Other Financing 2,393 (62) 2,455 Cash flow from Financing Activities (2,871) (415) (2,456) Increase in Cash 3,214 296 2,918 Opening Cash Balance 10,815 13,071 (2,256) Exchange Rate Adjustment 185 93 92 Closing Cash Balance 14,214 13,460 754 11 Business Updates Car Domestic car sales grew by 12%. Astra was able to maintain a leading market position with market share of 53%. 1H12 1H13 535,261 601,952 Others 7.8% Commercial Nissan 5.2% Others 8.9% 169,849 Others Honda 8.2% Commercial 28.2% Commercial Nissan 6.4% 280,768 Others 162,680 34.1% Honda 4.9% 46.6% Suzuki 12.5% 233,626 30.4% Suzuki