PT Astra International Tbk Full Year 2015 - 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. 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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 • Net earnings per share down 25% to Rp 357 • Net income excluding coal mining impairment down 20% to Rp 16.0 trillion • Automotive markets weaken, although the Group’s market share remains strong • Sound balance sheet position supportive of future investment Period ended 31st December 2015 2014* Change Net revenue (Rp bn) 184,196 201,701 (9%) Net income (Rp bn)** 14,464 19,191 (25%) Net earnings per share (Rp) 357 474 (25%) As at 31st As at 31st Change December 2015 December 2014* Shareholders’ funds (Rp bn)*** 102,043 95,494 7% Net asset value per share (Rp)*** 2,521 2,359 7% * Restated due to implementation of PSAK 24 (Revised 2013) – Employee Benefits ** 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 2015 and 2014 as well as the financial position as at 31st December 2015 and 2014 have been prepared in accordance with Indonesian Financial Accounting Standards and are audited. 2 Business Structure Automotive Financial Services Heavy Equipment Agribusiness Infrastructure Information & Mining Logistics & Technology Others Automobile Automobile Construction Palm Oil Toll Road Document Machinery Plantation Solution • Toyota • Astra Credit •MMS• MMS: 72km • Daihatsu Companies • MHI • United Tractors •MTN : 11km • Astra Graphia • Isuzu • Toyota Astra • MTN • Traktor • Astra Agro Lestari •MHI : 41km • BMW Finance • TMJ • Peugeot Nusantara • UD Trucks Logistics Motorcycle Logistics IT Solution • SERA / TRAC • Federal Mining Contracting •SERA / TRAC Motorcycle Olein Refinery • Mobil 88 (used) • Astra Graphia International •Mobil 88 (used) Finance • SELOG Information •SELOG Technology • Honda • Pamapersada • Tanjung • Toyofuji Logistics •TFLI Heavy Equipment Nusantara Sarana Lestari Indonesia • Water Utility Office Services • SAN Finance Kreasijaya Water Utility Component • Komatsu Astra Adhikarya • Palyja Coal Mining • Astra Graphia Finance Palyja Sea Port Xprins Indonesia • Astra Otoparts • Tuah Turangga Banking Agung • Eastkal Commodity Trading Fuel Logistic Property Other • Bank Permata Construction •Gresik Menara Terminal Astra Industry • Astra-KLK Pte.Ltd • Anandamaya • AstraWorld Insurance ResidencesSea Port • • Asuransi Astra Acset Indonusa Buana Eastkal • Astra Life 3 Market Position at 31 December 2015 • Astra’s car market share decreased from 51% to 50%, while Astra’s motorcycle market share increased from 64% to 69%. • Komatsu maintained its leading market position with a 36% market share, down from 40% last year. Car Motorcycle Others Suzuki Kawasaki 8% 1% 2% Honda Toyota 16% 32% Yamaha 28% Nissan 2% Suzuki Heavy Equipment 12% Honda 69% Daihatsu Others Mitsubishi Isuzu 17% 14% 11% 2% Komatsu Source : AISI Source : Gaikindo Kobelco 36% 10% Hitachi 18% Caterpillar 22% Source: United Tractors – Internal Market Research 4 Corporate Actions Jan ‘15 • United Tractors acquired 40% of PT Acset Indonusa Tbk, a construction company for a purchase consideration of Rp 650 billion. • Astra Agro Lestari acquired 50% of PT Kreasijaya Adhikarya, a refinery operator in Dumai, Riau Province, with a daily production capacity of 2,000 tonnes of CPO, for a purchase consideration of Rp 75 billion. Apr ‘15 • United Tractors through Pamapersada Nusantara acquired 75.5% of PT Sumbawa Jutaraya, a gold mining company, for USD 7.4 million. May ‘15 • United Tractors acquired a further 10.1% shares of Acset Indonusa, with purchase consideration Rp 164 billion, raising its shareholding to 50.1%. • Astra Honda Motor started exporting the All New Honda Beat eSP to the Philippines to expand the market. Jun‘15 • Astra Otoparts acquired a further 25.8% interest in SKF Indonesia, a bearing producer for Rp 67 billion, raising its shareholding to 40%. 5 Corporate Actions Jul ‘15 • During July, Astratel announced the acquisition of a 25% stake in the 73 km Semarang - Solo toll road, for a purchase consideration of Rp 780 billion. Aug ‘15 • Astra Otoparts and Bridgestone Indonesia signed a JV agreement to establish Bridgestone Astra Indonesia, with ownership structure: Bridgestone 51% and AOP 49%. Sep ‘15 • Astra Honda Motor commenced its new 5th plant in Karawang with additional production capacity of 500 thousand units per year for sport type, increasing the annual production capacity to 5.8 million units per year. Dec‘15 • United Tractors, together with Sumitomo Corporation and Kansai Electric Power Co, Inc, have signed the Power Purchase Agreement with PLN to develop Tanjung Jati B coal-fired power plant Unit 5 & 6 with the expansion project, each having a capacity of 1,000 MW, located in Central Java. 6 Financial Performance Consolidated Income Statement “The Group experienced challenging trading conditions during 2015 with lower contributions from all segments, except Information Technology, and we remain cautious about the immediate outlook. Nevertheless, the Group’s strong cash generation and sound balance sheet is enabling it to invest for the future and benefit from any improvement in economic conditions.” - Prijono Sugiarto, President Director - In Billion Rupiah 2015 2014* Change IDR / USD, average 13,458 11,885 13% Net Revenue 184,196 201,701 (9%) Gross Profit 36,710 38,809 (5%) Selling, General and Administrative (19,498) (18,646) 5% Expenses Impairment Losses Related to Mining (5,255) (2,744) 92% Properties Other Income (Expense) 3,206 3,394 (6%) Equity Income 4,467 6,245 (28%) Income Tax Expenses (4,017) (4,927) (18%) Non-controlling interests (1,149) (2,940) (61%) Net Income 14,464 19,191 (25%) * Restated due to implementation of PSAK 24 (revised 2013) – Employee Benefits 8 Astra Portfolio as at 31 December 2015 Ownership Share of NI % % 2015 2014 Auto Non-Auto Auto Non-Auto 4W Automotive SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 51 31 26 Astra Daihatsu Motor 32 Isuzu Astra Motor Indonesia 50 2W Automotive Astra Honda Motor 50 19 15 Honda SO 100 2001 2013 2014 2015 Component 80 2 3 Astra Otoparts Auto (Incl. auto Financial Services related Financial 89% 68% 63% 76% Astra Sedaya Finance 86 Services) Federal International Finance 100 Toyota Astra Financial Services 50 Komatsu Astra Finance 50 24 1 19 6 Non-Auto 11% 32% 37% 24% SAN Finance 60 Asuransi Astra Buana 96 Permata Bank 45 Astra Life 50 Heavy Equipment & Mining United Tractors 60 Pamapersada Nusantara 60 16 17 Tuah Turangga Agung 60 Acset Indonusa 30 Traktor Nusantara 50 Agribusiness Astra Agro Lestari 80 3 10 Infrastructure, Logistics, IT & Others SERA 100 Palyja 49 4 4 Marga Mandalasakti 79 Astra Graphia 77 9 Consolidated Balance Sheet • Astra’s net asset value per share of Rp 2,521 at 31 December 2015 was 7% higher than at the end of 2014. • Net cash, excluding the Group’s financial services subsidiaries, was Rp 1.0 trillion, compared to net debt of Rp 3.3 trillion at the end of 2014, due to strong working capital inflows. The Group’s financial services subsidiaries had net debt of Rp 44.6 trillion, compared to Rp 45.9 trillion at the end of 2014. In Billion Rupiah 31-Dec-15 31-Dec-14* Change Cash and Cash Equivalents 27,102 20,902 30% Trade Receivables 17,776 21,332 (17%) Inventories 18,337 16,986 8% Financing Receivables 60,105 60,705 (1%) Investment in Joint Ventures and Associates 29,640 27,218 9% Fixed Assets 41,702 41,250 1% Other Assets 50,773 47,634 7% Total Assets 245,435 236,027 4% Short-term Borrowings 11,975 10,586 13% Trade Payables 20,557 18,839 9% Long-term Debt 58,674 59,486 (1%) Other Liabilities 27,696 26,929 3% Total Liabilities 118,902 115,840 3% Equity Attributable to the Owners of The Parent 102,043 95,494 7% Non – controlling Interest 24,490 24,693 (1%) Total Equity 126,533 120,187 5% Net Debt (Cash) 43,547 49,170 (11%) Net Debt (Cash) (Excl. Financial Services) (1,034) 3,314 (131%) * Restated due to implementation of PSAK 24 (revised 2013) – Employee Benefits 10 Consolidated Cash Flow • In 2015, Astra’s booked cash surplus of Rp 5.3 trillion, with ending consolidated cash balance (incl.