PT Astra International Tbk 2012 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 Overview The Group’s net earnings per share were up 9% to Rp 480, with improved contributions from the Group’s car and financial services businesses partially offset by lower earnings in the Group’s heavy equipment and mining activities and motorcycle businesses. 2012 full year financial statements • Net earnings per share up 9% to Rp 480 • Unit sales of cars up by 25%, while motorcycles 4% lower • Good earnings growth from financial services • Strong operating results from mining contracting • Reduced contribution from heavy equipment due to softening coal sector demand Group results Full Year ended 31st December 2012 2011 Change % Net Revenue (Rp bn) 188,053 162,564 16% Net Income (Rp bn)* 19,421 17,785 9% Earnings per share (Rp) 480 439 9% As at 31st As at 31st December 2012 December 2011 Shareholders’ Funds (Rp bn)** 71,201 60,449 18% Net asset value per share (Rp)** 1,759 1,493 18% * 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. 1 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 Companies •Isuzu •United Tractors •MMS : 72km Astra Graphia •Toyota Astra •BMW •Traktor Astra Agro Lestari •MTN : 11km Finance •Peugeot Nusantara •MHI : 41km •UD Trucks Motorcycle Logistics IT Solution Motorcycle Federal Intl. Mining Contractor Finance •SERA / TRAC PAMA Persada •Mobil 88 (used) Astra Graphia Honda Nusantara •SELOG Information Heavy Equipment •TFLI Technology Component •SAN Finance •Komatsu Astra Coal Mining Water Utility Finance Astra Otoparts •PMM Palyja Banking • TTA • ABP • Bank Permata BEE Fuel Logistic Others • ABB / ABJ • DS / DN Astraworld • PJU Gresik Terminal Insurance Asuransi Astra Buana 2 Market position at 31 December 2012 • Astra maintains car market share at 54%, while motorcycle market share increasing from 53% to 58% • Market share for Komatsu declined by 6% driven by weakening coal price and increased competition Car Motorcycle Others Kawasaki 10% Suzuki Honda 2% 6% 6% Toyota 36% Nissan 6% Yamaha Suzuki Honda 34% 11% Heavy Equipment 58% Others, 4% Kobelco, Mitsubishi Daihatsu 13% 13% Isuzu 15% 3% Komatsu, 43% Source : AISI Source : Gaikindo Hitachi, 21% Caterpillar, 19% Source: United Tractors – Internal Market Research 3 2012 corporate actions January • SANF issued Bond II amounting to Rp 1.5 trillion February • ASF issued Bond (PUB 1 2012) with total of Rp 5 trillion April • TTA completed coal mining acquisition of Duta Nurcahya (DN) with share ownership of 60% • FIF issued Bond (PUB 1 2012) with total of Rp 4 trillion • AI announced a 10 for 1 stock split June • AI paid final 2011 dividend amounting to Rp 5.6 trillion with DPR 45%. Total 2011 dividend Rp 8 trillion • AOP and Pirelli established a joint venture “PT Evoluzione Tyres” to produce auto tire in Indonesia • TAFS issued Bond II amounting to Rp 1.3 trillion • Bank Permata issued Subordinated Debt amounting to Rp 700 billion • July SERA issued “Serasi Autoraya III” bonds with total principal amount of Rp 780 billion • AOP formed a JV company “PT Astra Juoku Indonesia” to produce automotive lamp 4 2012 corporate actions September • AOP established two subsidiary companies to produce 4W plastic parts, tube, hose, and transmission belt • Astra introduced new collaboration for Low Cost Fuel Efficient cars named “Astra Toyota Agya” and “Astra Daihatsu Ayla” • UT through TTA acquired 60% of Piranti Jaya Utama (“PJU”), a coal concession in Barunang, Central Kalimantan • ASF issued Bond (PUB 1 2012) with total of Rp 1.53 trillion October • AHM completed cub to scooter facility conversion project, effectively increased scooter capacity by 1,000 units/day to become 10,600 units/day • ADM completed new plant in Karawang with total production capacity 120k units/year November • AI paid interim dividend for book year 2012 with DPS of Rp 66 (DPR 45%) • AI established PT Astra Auto Prima for BMW used car trading December • Bank Permata completed Right Issue V of Rp 2 trillion and issued subordinated loan of Rp 1.8 trillion to strengthen CAR above 12% 5 Financial Performance 2012 environment Indonesia domestic consumption and investment remain strong, despite widening trade deficit that put pressure on IDR against USD Strong domestic car sales benefited from rising incomes. The impact of new minimum down-payment requirements in automotive conventional financing introduced in mid-June 2012 was mild for car sales Motorcycle sales adversely affected by new minimum down-payment requirements and lower demand in some areas from outside Java due to declining commodity prices Financial services business recorded higher financing growth benefited from ample funding liquidity and competitive funding cost Slowing demand in the heavy equipment business reflects weakening coal prices and increased competition from excess production redirected from the Chinese market Despite lower average crude palm oil prices, palm oil production increased due to higher matured area and seasonally high crops productivity 7 Consolidated income statement “The Group’s good result in 2012 was due primarily to strong car sales, enabling Astra to report another year of record earnings and net assets per share. Slowing demand in the heavy equipment business reflected weakening coal prices, while falling CPO prices also affected profitability despite output increasing. While the prospects for our businesses remain sound, the outlook is susceptible to coal and CPO price volatility as well as the effects of new minimum down-payment regulations in automotive Shariah-financing.” Prijono Sugiarto President Director In Billion Rupiah 2012 2011 % Chg USD / IDR, average 9,419 8,773 7% Revenue 188,053 162,564 16% Gross Profit 36,200 32,034 13% Operating Expenses (16,330) (14,202) 15% Other Income 2,352 2,182 8% Equity Income 5,676 5,760 (1%) Income Tax Expense (5,156) (4,697) 10% Non-controlling interest (3,321) (3,292) 1% Net Income 19,421 17,785 9% 8 Astra portfolio as at 31 December 2012 Ownership % Share of NI % • Higher net income contribution from Auto Non-Auto 4W on stronger consumer demand and 4W Automotive solid new models line up SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 51 30.1 Astra Daihatsu Motor 32 • Lower contribution from 2W due to Isuzu Astra Motor Indonesia 45 down-payment regulation, lower 2W Automotive margin from scooter & FI models, and Astra Honda Motor 50 13.5 reduced demand driven by weakening Honda SO 100 commodity prices in some areas Component Astra Otoparts 96 5.2 • Net income contribution Auto vs. Non- Financial Services Auto segments: Astra Sedaya Finance 100 Federal International Finance 100 2001 2010 2011 2012 Toyota Astra Financial Services 50 15.0 4.1 Komatsu Astra Finance 50 SAN Finance 60 Auto (Incl. auto 89% 66% 61% 64% Asuransi Astra Buana 96 related Financial Permata Bank 45 Services) Heavy Equipment & Mining United Tractors 60 18.0 Pamapersada Nusantara 60 Non-Auto 11% 34% 39% 36% Agribusiness Astra Agro Lestari 80 9.9 Infrastructure, Logistics, IT SERA 100 Palyja 49 4.2 Marga Mandalasakti 79 77 Astra Graphia 9 Consolidated balance sheet • Astra’s net asset value of Rp 1,759 per share* at Dec’12 was 18% higher than at the end of 2011 • Net debt at Dec’12 was Rp 45.6 tn, up by 43% primarily due to investment and capital expenditure in the heavy equipment, mining, automotive and agribusiness sectors. Overall,