PT Astra International Tbk 2013 Results Presentation Disclaimer
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PT Astra International Tbk 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. Overview Indonesia economic growth slowed moderately to 5.78% in 2013 (2012: 6.23%), driven by slowdown in investment while consumption remained strong Strong results from the Group’s financial services and mining contracting businesses were offset by a decline in earnings from the Group’s heavy equipment and palm oil businesses. While automotive demand remained favourable, increased competition coupled with higher labour costs led to the earnings contribution from the car sector being little changed. 2 Highlights • Indonesia economic growth slowed moderately to 5.78% in 2013 (2012: 6.23%), driven by slowdown in investment while consumption remained strong • Strong results from the Group’s financial services and mining contracting businesses were offset by a decline in earnings from the Group’s heavy equipment and palm oil businesses. • While automotive demand remained favourable, increased competition coupled with higher labour costs led to the earnings contribution from the car sector being little changed. Period ended 31st December 2013 2012 Change Net Revenue (Rp bn) 193,880 188,053 3% Net Income (Rp bn)* 19,417 19,421 0% Net earnings per share (Rp) 480 480 0% As at 31st As at 31st Change December 2013 December 2012 Shareholders’ Funds (Rp bn)** 83,938 71,201 18% Net asset value per share (Rp)** 2,073 1,759 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. 3 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 4 Market position at 31 December 2013 • Astra’s car market share declined from 54% to 53%, while Astra’s motorcycle market share increased from 58% to 61%. • Komatsu’s market share was 41% and maintained it’s leading market position despite tight competition and weaker demand for heavy equipment due to lower commodity prices. Car Motorcycle Others Kawasaki 9% Suzuki Honda 2% 5% 7% Toyota 35% Nissan 5% Yamaha 32% Suzuki Honda 13% 61% Heavy Equipment Others 2% Mitsubishi Daihatsu Isuzu Kobelco 13% 15% 3% 17% Komatsu Source : Gaikindo 41% Source : AISI Hitachi 21% Caterpillar 19% Source: United Tractors – Internal Market Research 5 Corporate actions • Astratel acquired 100% share of PT Pelabuhan Penajam Banua Jan ‘13 Taka (Eastkal Seaport) in Balikpapan, East Kalimantan for Rp 442 billion, to provide an integrated logistic hub for Astra group. • Pama Persada completed final payment of USD 80m to increase March ‘13 its ownership to 75.40% in Asmin Bara Bronang/Jaan coal mines. • AOP acquired 51% share of PT Pakoakuina (Pako), a wheel rim April ‘13 manufacturer, for Rp 700 billion. May ‘13 • AOP completed right issue of Rp 3.0 trillion, with AI participation of Rp 2.9 trillion. May ‘13 • AI placed 15.7% of AOP shares at a price of Rp 3,750 per share to increase the liquidity of the stock, generating Rp 2.8 trillion in gross proceeds. 6 Corporate actions Aug ‘13 • AAL established a joint venture in Singapore (Astra – KLK Pte. Ltd), to market its palm oil products. AAL holds a 49% stake and Malaysian partner KL-Kepong Plantation Holdings owns 51%. Sep ‘13 • Astra commercially launched the Low Cost Green Cars Astra- Toyota Agya and the Astra-Daihatsu Ayla. Oct ‘13 • AI announced agreements to develop 2.4 hectares of land for an office tower and residential apartment complex in central Jakarta. Dec ‘13 • Bank Permata completed a Rp 2.2 trillion senior and subordinated debt issuance. Jan ‘14 • Bank Permata completed a Rp 1.5 trillion rights issue. • JV Agreement signed with Aviva plc to form Astra Aviva Life. 7 Financial Performance Consolidated income statement “The Group produced satisfactory results in 2013, particularly as a number of our businesses faced challenging conditions. The outlook for 2014 remains sound, although it is expected that there will continue to be heightened competition in the car market and weakness in coal prices, while concerns remain about increases in interest rates and rupiah volatility.” - Prijono Sugiarto, President Director In Billion Rupiah 2013 2012 Change USD / IDR, average 10,563 9,419 12% Revenue 193,880 188,053 3% Gross Profit 35,311 36,200 (2%) Operating Expenses (16,708) (16,330) 2% Other Income 2,623 2,352 12% Equity Income 6,297 5,676 11% Income Tax Expense (5,226) (5,156) 1% Non-controlling interest (2,880) (3,321) (13%) Net Income 19,417 19,421 0% 9 Astra portfolio as at 31 December 2013 Ownership Share of NI % % 2013 2012 Auto Non-Auto Auto Non-Auto 4W Automotive SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 51 31 30 Astra Daihatsu Motor 32 Net income contribution Auto vs. Isuzu Astra Motor Indonesia 45 Non-Auto segments: 2W Automotive Astra Honda Motor 50 15 14 2001 2011 2012 2013 Honda SO 100 Component Auto (Incl. auto Astra Otoparts 80 5 5 related Financial 89% 61% 64% 68% Financial Services Services) Astra Sedaya Finance 100 Federal International Finance 100 Toyota Astra Financial Services 50 17 5 15 4 Non-Auto 11% 39% 36% 32% Komatsu Astra Finance 50 SAN Finance 60 Asuransi Astra Buana 96 Permata Bank 45 Heavy Equipment & Mining United Tractors 60 15 18 Pamapersada Nusantara 60 Agribusiness Astra Agro Lestari 80 7 10 Infrastructure, Logistics, IT SERA 100 Palyja 49 5 4 Marga Mandalasakti 79 77 Astra Graphia 10 Consolidated balance sheet • Astra’s net asset value of Rp 2,073 per share at 31st December 2013 was 18% higher than at the end of 2012. • Net debt at 31st December 2013, exclusive of the Group’s financial services subsidiaries, was Rp 3.7 trillion, mainly due to the sell down of 15.7% stake in Astra Otoparts and a reduction in working capital in the Group’s heavy equipment businesses. In Billion Rupiah 31-Dec-13 31-Dec-12 Change Cash and Cash Equivalents 18,557 11,055 68% Trade Receivables 19,843 16,443 21% Inventories 14,433 15,285 (6%) Financing Receivables 54,677 48,631 12% Investments in Associates and Jointly Controlled Entities 23,870 19,801 21% Fixed Assets 37,862 34,326 10% Other Assets 44,752 36,733 22% Total Assets 213,994 182,274 17% Short-term Borrowings 12,854 7,202 78% Trade Payables 17,275 12,685 36% Long-term Debt 51,669 49,555 4% Other Liabilities 26,008 23,018 13% Total Liabilities 107,806 92,460 17% Equity Attributable to The Owners of The Parent 83,938 71,201 18% Non – controlling Interest 22,250 18,613 20% Total Equity 106,188 89,814 18% Net Debt (45,966) (45,702) 1% Net Debt (Excl. Financial Services) (3,687) (8,918) (59%) 11 Consolidated cash flow The Group’s cash balance at 31 December 2013 increased by Rp 7.7 trillion, mainly driven by stronger working capital inflows. In Billion Rupiah 2013 2012 Change Cash from operations 26,690 13,943 12,747 Tax Payments (6,382) (5,688) (694) Interest received 942 675 267 Dividends Received 3,336 4,064 (728) Cash flow from Operating