AI Business Update 2017

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AI Business Update 2017 PT ASTRA INTERNATIONAL TBK Full Year 2017 - 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 Net earnings per share Return to Sustained higher commodity Rp466 profitability prices benefited heavy equipment at and mining businesses, as well as Permata Bank agribusiness 25% 54% 75% For the year ended 31st December Group Results 2017 2016 Change Net revenue (Rp bn) 206,057 181,084 14% Net income (Rp bn)* 18,881 15,156 25% Net earnings per share (Rp) 466 374 25% As at 31st As at 31st Change December 2017 December 2016 Shareholders’ funds (Rp bn)** 123,645 111,951 10% Net asset value per share (Rp)** 3,054 2,765 10% * 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 2017 and 2016 as well as the financial position as at 31st December 2017 and 2016 have been prepared in accordance with Indonesian Financial Accounting Standards and are 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 Equipment Construction Machinery Palm Oil Plantation Toll Road Document Solution •Astra Credit • Surya Artha • United Tractors • Astra Agro Lestari • Marga Mandalasakti •Astra Graphia Companies Nusantara • Traktor Nusantara • Marga Harjaya •Toyota AstraOther Finance Refineries Infrastruktur IT Solution Finance • Komatsu Astra Mining Contracting • Tanjung Sarana Lestari • Marga Trans Nusantara • Astra Graphia Finance • Pamapersada Nusantara • Kreasijaya Adhikarya • Trans Marga Jateng Information Motorcycle • Tanjung Bina Lestari • Trans Bumi Serbaraja Technology • Federal Banking Coal Mining • Lintas Marga Sedaya International • Permata Bank • Tuah Turangga Agung Commodity Trading Office Services Solution Finance • Astra-KLK Pte.Ltd Sea Port • Astragraphia Xprins Insurance Construction Industry • Pelabuhan Penajam Indonesia • Asuransi Astra • Acset Indonusa Cattle in Palm Oil Banua Taka Buana Plantation • Astra Life Energy • Agro Menara Rachmat Logistics • Bhumi Jati Power • Serasi Autoraya 3 Market Position as at 31 December 2017 • Astra’s car market share decreased from 55% to 54%. • Astra’s motorcycle market share increased from 74% to 75%. • Komatsu market share increased from 32% to 35%. Car Motorcycle Suzuki Kawasaki 1% 1% Yamaha Toyota 23% 35% Others 46% Heavy Equipment Daihatsu Others Honda Isuzu 17% 17% 2% Komatsu 75% 35% Source : Gaikindo Source : AISI Kobelco 15% Hitachi 15% Caterpillar 18% 4 Source: United Tractors – Internal Market Research Corporate Actions Jan ‘17 • Astratel Nusantara completed the acquisition of an initial 40% interest in PT Baskhara Utama Sedaya, which owns 45% of Lintas Marga Sedaya, the operator of the newly operational 116.8km Cikopo-Palimanan toll road, and subsequently conditionally agreed to acquire the remaining 60% interest. Mar‘17 • United Tractors’ 25%-owned 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 the remaining 60% interest in PT Baskhara Utama Sedaya, which owns 45% of the operator of 116.8km 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 stake in the 72.6km Semarang-Solo toll road from 25% to 40%. Jun‘17 • Permata Bank completed its Rp3.0 trillion right issue. 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% stake in PAM Lyonnaise Jaya. 6 Financial Performance 7 Consolidated Income Statement “After a satisfactory overall result in 2017, the Group should continue to benefit from improving economic conditions and stable commodity prices, although competition seen in the car market is expected to intensify.” - Prijono Sugiarto, President Director - In Billion Rupiah 2017 2016 Change IDR / USD, average 13,398 13,330 1% Net Revenue 206,057 181,084 14% Gross Profit 42,368 36,432 16% Selling, General and Administrative (22,042) (18,898) 17% Expenses Other Income 2,176 1,370 59% Share of Results of Joint Ventures and 6,694 3,349 100% Associates Income Tax Expenses (6,031) (3,951) 53% Non-controlling Interests (4,284) (3,146) 36% Net Income 18,881 15,156 25% 8 Divisional Net Revenue and Net Income Divisional Net Revenue In Billion Rupiah 2017 2016 Change Automotive 95,210 94,440 1% Financial Services 18,641 17,762 5% Heavy Equipment, Mining, Construction and Energy 64,429 45,112 43% Agribusiness 17,306 14,121 23% Infrastructure and Logistics 6,841 7,189 (5%) Information Technology 3,610 2,451 47% Property 20 9 122% Total 206,057 181,084 14% Divisional Net Income In Billion Rupiah 2017 2016 Change Automotive 8,868 9,166 (3%) Financial Services 3,752 789 376% Heavy Equipment, Mining, Construction and Energy 4,469 3,032 47% Agribusiness 1,602 1,599 0% Infrastructure and Logistics (231) 263 (188%) Information Technology 198 196 1% Property 223 111 101% Total 18,881 15,156 25% 9 Consolidated Balance Sheet • The net asset value per share was Rp3,054 at 31st December 2017, 10% higher than at the end of 2016. • Net cash, excluding the Group’s financial services subsidiaries, was Rp2.7 trillion at the end of 2017 compared with net cash of Rp6.2 trillion at 31st December 2016. The decrease was due mainly to new investments in toll roads, property and power plants. Correspondingly, at the Group’s parent company, Astra International, net debt rose to Rp9.2 trillion compared with net debt of Rp7.1 trillion at the end of 2016. The Group’s financial services subsidiaries had net debt of Rp46.1 trillion at the end of 2017, compared with Rp47.7 trillion at the end of 2016. In Billion Rupiah 31-Dec-17 31-Dec-16 Change Cash and Cash Equivalents 31,574 29,357 8% Trade Receivables 25,420 19,426 31% Inventories 19,504 17,771 10% Financing Receivables 63,252 64,639 (2%) Investment in Joint Ventures and Associates 39,260 33,987 16% Fixed Assets 48,402 43,237 12% Other Assets 68,234 53,438 28% Total Assets 295,646 261,855 13% Short-term Borrowings 16,321 18,764 (13%) Trade Payables 29,468 22,489 31% Long-term Debt 58,657 52,146 12% Other Liabilities 34,871 28,550 22% Total Liabilities 139,317 121,949 14% Equity Attributable to the Owners of The Parent 123,645 111,951 10% Non – controlling Interest 32,684 27,955 17% Total Equity 156,329 139,906
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