PT ASTRA INTERNATIONAL TBK Nine Months 2018

PT ASTRA INTERNATIONAL TBK Nine Months 2018 - 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

Net earnings per share Auto Market Share Higher coal prices Rp422 continued to benefit Lower crude palm oil heavy equipment, mining prices adversely contracting and mining impacted agribusiness 21% 50% 75% revenue

9 months ended 30th September Group Results 2018 2017* Change Net revenue (Rp bn) 174,881 150,225 16% Net income (Rp bn) 17,073 14,159 21% Net earnings per share (Rp) 422 350 21% As at 30th As at 31st Change September 2018 December 2017* Shareholders’ funds (Rp bn) 132,480 123,780 7% Net asset value per share (Rp) 3,272 3,058 7%

* Restated due to implementation of PSAK No. 69: Agriculture The financial results for the nine months ended 30th September 2018 and 2017 as well as the financial position as at 30th September 2018 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2017 has been prepared in accordance with Indonesian Financial Accounting Standards and 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 Mining, Construction Agribusiness and Logistics Technology and Energy

Automobile Heavy Construction Machinery Palm Oil Plantation Toll Road Document Solution •Astra Credit Equipment • United Tractors • Astra Agro Lestari • Marga Mandalasakti •Astra Graphia Companies • Surya Artha • Traktor Nusantara • Marga Harjaya •Toyota AstraOther Nusantara Refineries Infrastruktur IT Solution Finance Finance Mining Contracting • Tanjung Sarana Lestari • Marga Trans Nusantara • Astra Graphia • Komatsu Astra • Pamapersada Nusantara • Kreasijaya Adhikarya • Trans Marga Jateng Information Motorcycle Finance • Tanjung Bina Lestari • Trans Bumi Serbaraja Technology • Federal Coal Mining • Lintas Marga Sedaya International Banking • Tuah Turangga Agung Commodity Trading Office Services Solution Finance • Permata Bank • Astra-KLK Pte.Ltd Sea Port • Astragraphia Xprins Construction Industry • Pelabuhan Penajam Indonesia Mobile Lending Insurance • Acset Indonusa Cattle in Palm Oil Banua Taka Fintech • Asuransi Astra Plantation • Astra WeLab Buana Energy • Agro Menara Rachmat Logistics Digital Arta • Astra Life • Bhumi Jati Power • Serasi Autoraya

Market Position as at 30 September 2018 • Astra’s car market share decreased from 55% to 50%. • Astra’s motorcycle market share maintained at 75%. • Komatsu maintained its leading market position with 35% market share.

Car Motorcycle

Toyota Others 30% 25%

Others 51% Heavy Equipment

Honda Others 75% Daihatsu 15% Isuzu 17% Komatsu 2% 35% Sumitomo 5% Source : Gaikindo Source : AISI

Kobelco 13%

Hitachi 14% Caterpillar 18% 4 Source: United Tractors – Internal Market Research Corporate Actions

Feb ‘18 • The Group invested US$150 million for a minority stake in GO-JEK, Indonesia’s leading multi-platform technology group, which provides access to a wide range of services from transportation and payments to food delivery, logistics and other on-demand services.

Apr‘18 • 50%-owned Astra Land Indonesia purchased a 3-hectare site in Jakarta’s Central Business District, for residential and commercial development.

May‘18 • Permata Bank divested its 25% shareholding in Astra Sedaya Finance to the Group for Rp2.8 trillion, in order to strengthen the bank’s capital position and maximize its capital allocation for lending.

5 Corporate Actions

Aug‘18 • United Tractors’ subsidiary, Danusa Tambang Nusantara, signed a Conditional Share Sale Agreement to acquire a 95% stake in Agincourt Resources, which operates a gold mine in North Sumatera, for approximately US$1.0 billion.

Sep‘18 • Astra (through its subsidiary, Sedaya Multi Investama) and WeLab, a leading technology enabler for consumer lending in China including Hong Kong, announced the establishment of Astra WeLab Digital Arta, 60%-owned by Astra, to offer mobile lending products to retail consumers and provide financial technology solutions to enterprise customers.

6 Financial Performance

7 Consolidated Income Statement “We expect the Group to achieve satisfactory full year results, notwithstanding concerns over competitive pressure in the car market and weak crude palm oil prices.”

- Prijono Sugiarto, President Director -

In Billion Rupiah 9M18 9M17* Change IDR / USD, average 14,129 13,349 6% Net Revenue 174,881 150,225 16% Gross Profit 36,702 30,673 20% Selling, General and Administrative (16,500) (15,808) 4% Expenses Other Income 1,702 1,020 67% Share of Results of Joint Ventures and 5,281 5,594 (6%) Associates Income Tax Expenses (5,668) (4,091) 39% Non-controlling Interests (4,444) (3,229) 38% Net Income 17,073 14,159 21%

* Restated due to implementation of PSAK No. 69 : Agriculture 8 Divisional Net Revenue and Net Income Divisional Net Revenue

16% Others (Infrastructure & Logistics, IT and Property)

174,881 150,225 4% 5% Agribusiness 8% 8% 35% 31% Heavy Equipment, Mining, Construction & Energy 8% 9% Financial Services 45% 47% Automotive 9M18 9M17 Divisional Net Income

Others (Infrastructure & Logistics IT and Property)

21%

17,073 14,159* 2% 1% Agribusiness 5% 8% 24% 32% Heavy Equipment, Mining, Construction & Energy 20% 21% Financial Services 41% 46% Automotive 9M18 9M17* *Restated due to implementation of PSAK No. 69 : Agriculture 9 Consolidated Balance Sheet • The net asset value per share was Rp3,272 at 30th September 2018, 7% higher than at the prior year end. • Net cash excluding the Group’s financial services subsidiaries was Rp1.7 trillion, down from Rp2.7 trillion at 31st December 2017, due mainly to the Group’s toll road and GO-JEK investments and capital expenditure in its mining contracting business. The Group’s financial services subsidiaries had net debt of Rp47.8 trillion, compared with Rp46.1 trillion at the end of 2017.

In Billion Rupiah 30-Sep-18 31-Dec-17* Change

Cash and Cash Equivalents 36,669 31,574 16%

Trade Receivables 31,390 25,420 23% Inventories 24,357 19,504 25% Financing Receivables 65,057 63,252 3% Investment in Joint Ventures and Associates 41,927 39,260 7% Fixed Assets 53,472 48,402 10% Other Assets 80,453 68,418 18% Total Assets 333,325 295,830 13% Short-term Borrowings 14,851 16,321 (9%) Trade Payables 39,997 29,468 36% Long-term Debt 67,892 58,657 16% Other Liabilities 42,654 34,879 22% Total Liabilities 165,394 139,325 19% Equity Attributable to the Owners of The Parent 132,480 123,780 7% Non – controlling Interest 35,451 32,725 8% Total Equity 167,931 156,505 7% Net Debt (Cash) 46,074 43,404 6% Net Debt (Cash) (Excl. Financial Services) (1,686) (2,654) (36%) 10 * Restated due to implementation of PSAK No. 69 : Agriculture Consolidated Cash Flow As at 30 September 2018, Astra’s consolidated closing cash balance (incl. bank overdraft) was Rp36.2 trillion.

In Billion Rupiah 9M18 9M17 Change Cash generated from operations 27,523 18,944 8,579 Tax Payments (5,060) (3,272) (1,788) Interest Received 1,162 1,280 (118) Net Cash flow provided from Operating Activities 23,625 16,952 6,673 Dividend Received 3,942 4,300 (358) Net Capex (10,193) (8,301) (1,892) Net Investment (5,796) (7,744) 1,948 Other Investing (594) (648) 54 Net Cash flow used in Investing Activities (12,641) (12,393) (248) Net Proceeds of Debt 3,846 2,422 1,424 Interest Paid (1,893) (1,597) (296) Dividend Payments (7,065) (5,746) (1,319) Other Financing (1,876) (14) (1,862) Net Cash flow used in Financing Activities (6,988) (4,935) (2,053) Increase / (Decrease) in Cash 3,996 (376) 4,372 Opening Cash Balance (incl. Bank Overdraft) 31,574 29,356 2,218 Exchange Rate Adjustment 599 29 570 Closing Cash Balance (incl. Bank Overdraft) 36,169 29,009 7,160 11 Business Updates

12 Automotive – Wholesale Car Market Astra’sThe wholesale car sales market were 10 for% highercars was at 4217% ,higher000 units, in the resulting period in at an 857 increase,000 units in market. Astra’s share car fromsales, 50 however,% to 54 %were. 4% lower at 424,000 units as a result of increased competition, which resulted in a decline in market share from 55% to 50%. 9M18 7% 9M17 856,559 804,164

LCGC 168,756 / 19.7% LCGC 179,768 / 22.4% Others Other Brands Others Other Brands 431,955 / 50.4% 432,043 / 50.4% Commercial 360,258 / 44.8% 360,287 / 44.8% 207,826 / 24.3% Commercial 173,211 / 21.5%

Isuzu, 13,723 / 1.7% Isuzu, 18,480 / 2.2% Daihatsu Daihatsu 4x2 & 4x4 140,233 / 17.4% 147,513 / 17.2% 4x2 & 4x4 474,481 / 55.4% 443,500 / 55.2% Astra Astra 424,604 / 49.6% 443,906 / 55.2% Toyota & Lexus Toyota & Lexus 258,523 / 30.2% 289,921 / 36.1%

Sedan Sedan 5,496 / 0.6% 7,685 / 1% M/S Market Segment Brand M/S Market Segment Brand 9M18 9M17 13 Source: Gaikindo Automotive – Car Product Launches During first nine months 2018 , Astra launched 17 new models and 6 revamped models.

Daihatsu Sirion (NEW) Peugeot 3008 SUV (NEW) Toyota C-HR (NEW) February 2018 March 2018 April 2018

Isuzu Traga (NEW) BMW 6 Series GT (NEW) Lexus ES (NEW) May 2018 August 2018 August 2018 14 Automotive – Wholesale Motorcycle Market The wholesale market for motorcycles increased by 9% to 4.7 million units. Astra Honda Motor’s domestic sales increased by 9% to 3.5 million units, with its market share stable at 75%. 9% 9M18 9M17

Others Others 25.1% 25.4%

4,722,242 4,340,252 units units

Honda Honda 74.9% 74.6%

15 Source: AISI Automotive – Motorcycle Product Launches During first nine months 2018, Astra Honda Motor launched 5 new model and 16 revamped models.

Honda BeAT Sporty Honda CB 150 Verza Honda GL 1800 Gold Wing (NEW) January 2018 February 2018 April 2018

Honda Vario 150 (NEW) Honda Super Cub Honda Forza (NEW) April 2018 August 2018 August 2018

16 Automotive – Components Astra Otoparts, the Group’s automotive components business, reported net income 12% higher at Rp414 billion, due to increased revenues from its original equipment manufacturing and replacement market sales.

Share of Results of Joint Revenue (Rp bio) Net Income (Rp bio) Ventures and Associates (Rp bio)

15% 12% 36%

11,501 414 322 9,975 370 236

9M18 9M17 9M18 9M17 9M18 9M17

17 Financial Services Net income from the Group’s financial services division increased by 17% to Rp3.5 trillion, with an improved contribution from its consumer finance businesses.

Unit Financed 9M18 9M17 % Amount Financed (Rp bio) 9M18 9M17 % ACC 130,988 137,229 (5%) ACC 19,638 21,018 (7%) TAF 60,424 86,447 (30%) TAF 12,014 15,737 (24%)

Total ACC & TAF 191,412 223,676 (14%) Auto Total ACC & TAF 31,653 36,755 (14%) Auto FIF (Incl.Electronics)’000 2,807,636 2,661,335 5% FIF (Incl.Electronics) 28,445 25,841 10% Total Auto 2,998,986 2,884,912 5% Total Auto 60,098 62,596 (4%) SANF 801 689 16% SANF 1,206 2,613 (54%) HE KAF 427 514 (17%) HE KAF* 2,553 2,608 (2%) Total HE 1,227 1,203 2% Total HE 3,758 5,221 (28%)

Permata Bank Asuransi Astra Buana • 9M18 consolidated net income of Rp494 billion • Higher net income by 2% to Rp764 billion. (9M17: consolidated net income of Rp708 billion, • 9M18 Gross Written Premium up by 7% YoY to benefited from a one-off gain on the sale of non- Rp3.4 trillion. performing loans). • RBC: 230%** vs regulatory minimum of 120%. • Loan book increased by 15% YoY to Rp107 trillion. • LDR 91%, Total CAR 19%, and CET-1 ratio 17%. • Gross and Net NPL at the end of September 2018 were * Average exchange rate USD/IDR: 14,129 (9M18) & 13,349 (9M17) **Tentative figure, waiting confirmation from OJK 4.8% and 1.7% respectively, with NPL coverage ratio of 18 189%. Heavy Equipment, Mining, Construction and Energy United Tractors, which is 59.5%-owned, reported 61% higher net income at Rp9.1 trillion, mainly due to improved performances in its construction machinery, mining contracting and mining operations, all of which benefited from increased coal prices.

Revenue (Rp bio) Mining Contracting

32%

61,125

4% 46,258 Coal OB 13% 4% Production Removal 12% 10% 716.6 22% 47% 586.6 46% 90.3 82.4 35% 38% 9M18 9M17 9M18 9M17 Construction Machinery Mining Contracting Coal Production (mn tonnes) Overburden Removal (mn bcm) Mining Construction Industry Komatsu Unit Sales Coal Sales (incl. Trading) General Contractor New Contracts 3,681 During 9M18, Acset has secured Rp835 billion of new

16% construction projects.

2,744

21% 34% 15% 124%

16% 10% 22% 12% 5,815 8.4 53% 50% 5,078 3.8

9M18 9M17 9M18 9M17 2017 2016 19 Mining Forestry Construction Agro Total Coal Sales (all in thousand tonnes) New Contracts Secured (Rp tn) Agribusiness Astra Agro Lestari, which is 79.7%-owned, reported an 18% decline in net income at Rp1.1 trillion. The decline was primarily due to a fall in crude palm oil prices which were 8% lower at Rp7,639/kg. This more than offset a 23% increase in crude palm oil and derivatives sales at 1.6 million tonnes.

Revenue (Rp bio)

CPO Productivity (tonne/Ha)

13,762 12,493 10% 39% 7% 42% Export

Local 3.17 2.95 61% 58%

9M18 9M17 9M18 9M17

CPO Production (‘K tonnes) CPO & Derivatives Sales (‘K tonnes) Average CPO Price (Rp/Kg)

18% 23% 8%

1,555 1,425 1,264 8,309 1,203 7,639

9M18 9M17 9M18 9M17 9M18 9M17 CPO Production CPO & Derivatives Sales 20 Infrastructure and Logistics The Group’s infrastructure and logistics division reported a net income of Rp112 billion, compared to a Rp66 billion net loss in the first nine months of 2017. This was mainly due to improved earnings from the Tangerang-Merak toll road and Serasi Autoraya as well as the inclusion in the prior year’s results of a one-off loss on the disposal of the Group’s 49% interest in PAM Lyonnaise Jaya. MMS Toll Revenue (Rp bio) MHI Toll Revenue (Rp bio) LMS Toll Revenue (Rp bio) TMJ Toll Revenue (Rp bio)

[72.5km] [40.5km]* [116.8km] [72.6km]*

11% 972% 12% 44 %

793 715 151 1,041 180 929 125 14 9M18 9M17 9M18 9M17 9M18 9M17 9M18 9M17 * 39.6 km is in operation * 40.1km is in operation

SERA Vehicles under Contract (units) Astra Toll Roads Portfolio (Km)

1% As at Toll Road Concessions 30 September 2018 In Operation 269.0 22,800 22,562 Under Development 84.4

Total 353.4

9M18 9M17 21 Information Technology Astra Graphia, which is 76.9%-owned, reported 1% higher net income of Rp138 billion due to increased revenue from all of its businesses.

Astra Graphia Revenue (Rp bio) Astra Graphia Net Income (Rp bio)

2,673 32% 1% 33% 2,026

17%

38%27% 32% 113 138 136 25% 1,134 40% 51% 37% 1,543 9M18 9M17 9M18 9M17

AGDS AGIT AXI

22 Property

Net Income (Rp bio) The Group’s property division reported 32% 32% lower net profit of Rp66 billion, due mainly to reduced development earnings recognised from its Anandamaya Residences project as a result of lower 97 percentage completion in its final stages of 66 construction.

The Group’s other property development 9M18 9M17 projects comprise Arumaya in South Jakarta and Asya in East Jakarta.

23 Appendices

24 Car Product Launches 2018

Models Launched Launching Period Engine Capacity Prices (Rp mio) BMW 520i Luxury Jan’18 2,000cc 1,009* Daihatsu Sirion Feb’18 1,300cc 182.5-193.5 Toyota Yaris Feb’18 1,500cc 235.4-275.9 Lexus RX 350L Mar’18 3,500cc 2,135 Peugeot 3008 Mar’18 1,600cc 697 Isuzu Giga FVR34 Mar’18 7,800cc 543-557 Isuzu Giga FVM34 Mar’18 7,800cc 648-675 Isuzu Giga FVZ34 Mar’18 7,800cc 820-833 Toyota Alphard Mar’18 2,500-3,500cc 925.2-1,773.4 Toyota C-HR Apr’18 1,800cc 488.7-490.2 Toyota Vios Apr’18 1,500cc 291.1-326 BMW X3 xDrive20i Luxury Apr’18 2,000cc 1,009* Isuzu Traga May'18 2,500cc 190

* Off the Road price

25 Car Product Launches 2018

Models Launched Launching Period Engine Capacity Prices (Rp mio) BMW X1 xDrive18i Dynamic Jun'18 1,500cc 609* BMW i8 Roadster Jun'18 1,500cc 3,969* BMW i8 Coupe Jun'18 1,500cc 3,559* BMW 530i Touring M Sport Aug'18 1,998cc 1,429* BMW 6 series GT Aug'18 1,998cc 1,569* Lexus ES Aug'18 2,487cc 1,150 Lexus UX Aug'18 1,987cc N/A Isuzu NMR81 T SHD Aug'18 4,788cc 342.6 Toyota Innova Aug'18 2,000cc-2,400cc 305.2-460.3 Toyota Fortuner Aug'18 2,400cc-2,700cc 471.9-663.9 * Off the Road price

26 Motorcycle Product Launches 2018

Models Launched Launching Period Engine Capacity Prices (Rp mio) Honda BeAT Sporty Jan’18 110cc 15.2-15.4 Honda BeAT Street Jan’18 110cc 15.9 Honda CBR 150 R Jan’18 150cc 32.9-33.7 Honda CB 150 Verza Feb’18 150cc 19.3-19.9 Honda Scoopy Feb’18 110cc 17.8 Honda Supra X 125 FI Mar’18 125cc 17.1-18.1 Honda GL1800 Gold Wing Apr'18 1,800cc 1,010 Honda Vario 150 Apr'18 150cc 22.5 Honda Vario 125 Apr'18 125cc 19.9 Honda CB500R Apr'18 500cc 144.9 Honda CB500F Apr'18 500cc 139.9 Honda CB500X Apr'18 500cc 148.9 Honda CB650F Apr'18 650cc 235.38 Honda PCX Hybrid Apr'18 150cc 40.3 Honda Supra GTR150R May'18 150cc 22.3

27 Motorcycle Product Launches 2018

Models Launched Launching Period Engine Capacity Prices (Rp mio) CB 150R Jul’18 150cc 26.8-27.9 CBR 250RR Jul’18 250cc 59.9-71.3 Super Cub 125 Aug'18 125cc 55 Forza Aug'18 250cc N/A CRF1000L Africa Twin Aug'18 998cc 464.1-499.1 Sonic 150R Aug'18 150cc 22.5-22.7

28 Equity Research Contact Details No Brokerage House Analyst Name Contact Number Email Address 1 BCA Sekuritas Aditya Eka Prakasa +62 21 23587222 [email protected] 2 BoA Merrill Lynch Swati Chopra +65 6678 0405 [email protected] 3 CIMB Sekuritas Indonesia Jovent Muliadi +62 21 3006 1727 [email protected] 4 Ciptadana Sekuritas Asia Arief Budiman +62 21 2557 4800 [email protected] 5 Citigroup Investment Research Ferry Wong +62 21 2924 9213 [email protected] 6 CLSA Indonesia Sarina Lesmina +62 21 2554 8820 [email protected] 7 Danareksa Sekuritas Stefanus Darmagiri +62 21 2955 5831 [email protected] 8 DBS Vickers Maynard Priajaya Arif +62 21 3003 4900 [email protected] 9 Deutsche Verdhana Securities Joko Sogie +62 21 2964 4543 [email protected] 10 Goldman Sachs Pramod Kumar +91 22 6616 9043 [email protected] 11 HSBC Global Research Colin Davis +65 6658 0606 [email protected] 12 Indo Premier Sekuritas Raditya Immanzah +62 21 5793 1168 [email protected] 13 J.P. Morgan Securities Indonesia Benny Kurniawan +62 21 5291 8024 [email protected] 14 Kresna Securities Franky Rivan +62 21 2939 1900 [email protected] 15 Macquarie Sekuritas Indonesia Robert Pranata +62 21 2598 8366 [email protected] 16 Mandiri Sekuritas Ariyanto Kurniawan +62 21 5296 9682 [email protected] 17 Maybank Kim Eng Securities Isnaputra Iskandar +62 21 2557 1129 [email protected] 18 Morgan Stanley Divya Gangahar Kothiyal +65 6834-6438 [email protected] 19 NH Korindo Sekuritas Arnold Sampeliling +62 21 797 6202 [email protected] 20 Nomura Indonesia Elvira Tjandrawinata +62 21 2991 3341 [email protected] 21 Onix Capital Bagus Hananto +62 21 3190 1777 [email protected] 22 RHB Sekuritas Indonesia Andrey Wijaya +62 21 2598 6888 [email protected] 23 Samuel Sekuritas Akhmad Nurcahyadi +62 21 2854 8144 [email protected] 24 Sinarmas Sekuritas Evan Lie Hadiwidjaja +62 21 392 5550 [email protected] 25 Trimegah Securities Willinoy Sitorus +62 21 2924 9088 [email protected] 26 UOB Kay Hian Securities Stevanus Juanda +62 21 2993 3845 [email protected] 27 Valbury Asia Securities Budi Rustanto +62 21 2553 3600 [email protected] 28 Yuanta Securities Indonesia Kristiadi +62 21 5153 608 [email protected] 29 For further information please contact: PT Astra International Tbk Corporate Investor Relations P: (+62 21) 5082 1997 E: [email protected]