PT Astra International Tbk 9M 2016 - Results Presentation

Disclaimer The materials in this presentation have been prepared by PT Astra International Tbk (Astra) and are general background information about Astra activities 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 Car unit sales up 10% Lower revenue in Significant increase in share down by & Motorcycle unit heavy equipment and loan-loss provisions at 6% at Rp279/share sales down 3% mining contracting Permata Bank

9 months ended 30th September 2016 2015 Change Net revenue (Rp bn) 132,294 138,177 (4%) Net income (Rp bn)* 11,277 11,997 (6%) Net earnings per share (Rp) 279 296 (6%) As at 30th As at 31st Change September 2016 December 2015 Shareholders’ funds (Rp bn)** 105,706 102,043 4% Net asset value per share (Rp)** 2,611 2,521 4%

* 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 nine months ended 30th September 2016 and 2015 as well as the financial position as at 30th September 2016 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2015 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

Automobile Motorcycle • Menara Astra • •Honda • Brahmayasa Bahtera • • Samadista Karya • Isuzu Component • Astra Land Indonesia • BMW •Astra • Astra Modern Land • Otoparts • UD Trucks Others •AstraWorld

Automobile Heavy Equipment Construction Machinery Palm Oil Plantation Toll Road Water Utility Document Solution •Astra CreditOther • SAN Finance • United Tractors • Astra Agro Lestari • MMS • Palyja •Astragraphia Companies • Komatsu Astra • Traktor Nusantara • MHI •Toyota Astra Finance Olein Refinery • MTN Sea Port IT Solution Finance Mining Contracting • Tanjung • TMJ • Eastkal • Astragraphia Banking • Pamapersada Nusantara Sarana Lestari • TBS Information Technology Motorcycle • Bank Permata • Kreasijaya Adhikarya • Federal Coal Mining Logistics Office Services International Insurance • Tuah Turangga Agung Commodity Trading • SERA / TRAC • Astra Graphia Xprins Finance • Asuransi Astra • Astra-KLK Pte.Ltd • Mobil88 Indonesia Buana Construction Industry • SELOG • Astralife • Acset Indonusa • TFLI

3 Market Position as at 30 September 2016 • Astra’s car market share increased from 50% to 54% and Astra’s motorcycle market share increased from 68% to 73%. • Komatsu maintained its leading market position with a 33% market share, down from 37% last year. Car Motorcycle

Others Kawasaki 9% 1% 2% Yamaha Honda Toyota 24% 19% 35%

Nissan Heavy Equipment 1% Suzuki 9% Others Honda Mitsubishi Daihatsu 17% 73% Isuzu Komatsu 9% 17% 1% 33% Source : Gaikindo Source : AISI Kobelco 14%

Hitachi Caterpillar 20% 16% 4 Source: United Tractors – Internal Market Research Financial Performances

5 Consolidated Income Statement “The Group is expecting to see a satisfactory result for the full year with the automotive business continuing to perform well, some improvement expected in agribusiness and modest recovery in the heavy equipment and mining operations, although concerns remain over the level of loan-loss provisions at Permata Bank.” - Prijono Sugiarto, President Director -

In Billion Rupiah 9M16 9M15 Change IDR / USD, average 13,323 13,357 (0%) Net Revenue 132,294 138,177 (4%) Gross Profit 25,737 27,263 (6%) Selling, General and Administrative (13,976) (14,520) (4%) Expenses Other Income (Expense) 1,210 2,091 (42%) Shares of Results of Joint Ventures and 3,331 3,557 (6%) Associates Income Tax Expenses (3,071) (3,780) (19%) Non-controlling Interests (1,954) (2,614) (25%) Net Income 11,277 11,997 (6%)

6 Astra Portfolio as at 30 September 2016 9M16 9M15 Share of Net Income (%) Ownership % Auto Non-Auto Auto Non-Auto 4W Automotive SO – Toyota, Daihatsu, Isuzu 100 51 31 26 32 Isuzu Astra Motor Indonesia 50 2W Automotive Astra Honda Motor 50 20 17 Honda SO 100 Component Astra Otoparts 80 2 1 Financial Services 86 Astra Sedaya Finance 2001 2014 2015 9M16 Federal International Finance 100 Toyota Astra Financial Services 50 50 24 (6) 21 4 Komatsu Astra Finance (Incl. auto SAN Finance 60 Auto Asuransi Astra Buana 96 related Financial 89% 63% 76% 77% Permata Bank 45 Services) Astra Life 50 Heavy Equipment & Mining United Tractors 60 Non-Auto 11% 37% 24% 23% Pamapersada Nusantara 60 Tuah Turangga Agung 60 17 28 Acset Indonusa 30 Traktor Nusantara 50

Agribusiness Astra Agro Lestari 80 8 1

Infrastructure, Logistics, IT & Property Marga Mandalasakti 79 SERA 100 Palyja 49 4 2 Astra Graphia 77 Menara Astra 100 7 Brahmayasa Bahtera 60

Consolidated Balance Sheet • Astra’s net asset value per share of Rp2,611 at 30 September 2016 was 4% higher than at the end of 2015. • Net cash, excluding the Group’s financial services subsidiaries, was Rp5.5 trillion at 30th September 2016, compared to net cash of Rp1.0 trillion at the end of 2015. The Group’s financial services subsidiaries had net debt of Rp41.9 trillion, compared to Rp44.6 trillion at the end of 2015. In Billion Rupiah 30-Sep-16 31-Dec-15 Change Cash and Cash Equivalents 27,216 27,102 0% Trade Receivables 19,270 17,776 8% Inventories 15,916 18,337 (13%) Financing Receivables 61,751 60,105 3% Investment in Joint Ventures and Associates 33,293 29,640 12% Fixed Assets 41,762 41,702 0% Other Assets 50,769 50,773 (0%) Total Assets 249,977 245,435 2% Short-term Borrowings 11,380 11,975 (5%) Trade Payables 20,820 20,557 1% Long-term Debt 52,241 58,674 (11%) Other Liabilities 33,733 27,696 22% Total Liabilities 118,174 118,902 (1%) Equity Attributable to the Owners of The Parent 105,706 102,043 4% Non – controlling Interest 26,097 24,490 7% Total Equity 131,803 126,533 4% Net Debt 36,405 43,547 (16%) Net Cash (Excl. Financial Services) (5,474) (1,034) 429% 8 Consolidated Cash Flow As at 30 September 2016, Astra’s ending consolidated cash balance (incl. Bank Overdraft) was Rp27.2 trillion. In Billion Rupiah 9M16 9M15 Change Cash generated from operations 18,491 23,426 (4,935) Tax Payments (3,525) (4,327) 802 Interest Received 1,020 951 69 Dividend Received 2,460 2,682 (222) Net Cash flow provided from Operating Activities 18,446 22,732 (4,286) Net Capex (5,216) (5,274) 58 Net Investment (2,873) (2,494) (379) Other Investing 160 (995) 1,155 Net Cash flow used in Investing Activities (7,929) (8,763) 834 Net Proceeds of Debt (3,804) (4,808) 1,004 Finance Costs Paid (1,627) (442) (1,185) Dividend Payments (5,550) (7,538) 1,988 Other Financing 1,230 20 1,210 Net Cash flow used in Financing Activities (9,751) (12,768) 3,017 Increase in Cash 766 1,201 (435) Opening Cash Balance (incl. Bank Overdraft) 27,072 20,728 6,344 Exchange Rate Adjustment (662) 2,682 (3,344) Closing Cash Balance (incl. Bank Overdraft) 27,176 24,611 2,565 9 Business Updates

10 Automotive – Wholesale Car Market Astra’s car sales were 10% higher at 421422,000 units, resulting in an increase in market share from 50% to 54%. 2% 9M16 9M15 783,470 764,481

Others 7.2% Commercial Nissan 1.4% Others 8.4% 147,902 Commercial Commercial Nissan 2.7% 18.9% 209,607 Others Honda 19.4% 31.7% Honda 15.4% 360,976 Others 27.4% Commercial 46.1% 382,322 33.2% 50.0% Suzuki 8.7 % Suzuki 12.1% Mitsubishi 9.4% Mitsubishi Commercial Isuzu 1.5% 11.4% 11.1% Daihatsu 4x2 & 4x4 Commercial Isuzu 1.9% 17.0% 625,414 18.2% Daihatsu 4x2 & 4x4 79.7% 16.6% 540,176 Astra Astra 70.6% 4x2 & 4x4 422,494 4x2 & 4x4 4x2 & 4x4 4x2 & 4x4 382,389 56.5% 53.9% 87.6% 59.2% 79.8% Toyota 50.0% 35.2% Toyota 31.5%

Sedan 1.3% Sedan 1.4% Sedan 48.2% Sedan 2.1% Sedan 2.0% Sedan 52.8% M/S AI Product Brand Segment AI Product M/S AI Product Brand Segment AI Product 9M16 Segment M/S 9M15 Segment M/S 11 Source: Gaikindo Automotive – Car Product Launches During first nine month 2016, Astra has launched 10 new models and 7 revamped models.

Toyota All New Fortuner GSF Isuzu Elf NMR January 2016 March 2016 May 2016

Toyota Sienta BMW i8 Astra July 2016 August 2016 August 2016

12 Automotive – Wholesale Motorcycle Market Astra Honda Motor’s domestic sales were 3% lower at 3.2 million units; however, its market share increasing from 68% to 73%. 10% 9M16 9M15 4,351,397 4,821,191

Kawasaki 2% Suzuki 1.8% Sport/Others Kawasaki 1.8% Sport/Others 12.8% Suzuki 1.1% Sport/Others Sport/Others Yamaha 26.8% Yamaha 47.2% 12.6% 1,371,633 1,054,006 28.5% Sport/Others 24.2% Sport/Others 5.1% 8.2% Scooter Scooter 3,639,362 Scooter 3,401,617 75.5% Scooter Scooter 2,806,750 Honda Scooter 78.2% Honda 2,642,075 2,806,750 77.1% 3,174,150 2,642,075 3,266,227 77.7% 85.9% 72.9% 83.2% 67.7%

Cub Cub Cub Cub Cub Cub 272,634 272,634 400,637 293,987 293,987 563,206 8.6% 68.1% 9.2% 9.0% 52.2% 11.7% Brand Honda Segment Honda Product Segment Brand Honda Segment Honda Product Segment 9M16 M/S 9M15 M/S 13 Source: AISI Automotive – Motorcycle Product Launches During first nine month 2016, Astra Honda Motor has launched 6 new models and 8 revamped models.

Honda CBR150R Honda Vario 150 eSP Honda Supra GTR 150 February 2016 February 2016 May 2016

Honda CBR 250 RR Honda BeAT Sporty Esp Honda CB 150 Street fire July 2016 August 2016 August 2016 14 Automotive – Components Net income at Astra Otoparts, the Group’s component business, increased 59% to Rp284 billion with higher revenue from its OEM, after market and export segments.

Revenue (IDR billion) Net Income (IDR billion)

10 % 59%

9,557 284 10% 8,670 11% 65

42% 179 42% 30

219

48% 47% 149

9M16 9M15 9M16 9M15 Export After Market OEM Shares of Results of Joint Ventures & Associates Consolidated Income

15 Financial Services Net income from the Group’s financial services businesses declined 31% to Rp2.1 trillion. Higher earnings at Federal International Finance and Toyota Astra Financial Services were more than offset by a decline in the contribution from the Group’s other financial services businesses, particularly Permata Bank which recorded a net loss following a significant increase in loan-loss provisions.

Unit Financed 9M16 9M15 % Amount Financed (Rp bio) 9M16 9M15 %

ACC (new & used cars) 132,816 125,450 6 ACC (Incl. HE) 19,864 17,064 16 TAFS 58,982 49,637 19 TAFS 9,844 7,501 31 Auto Total 4W 191,798 175,087 10 Auto Total 4W 29,708 24,565 21

FIF (Incl.Electronics)’000 2,559 2,351 9 FIF 24,027 21,166 14

ACC (HE - Fleet) 344 729 (53) Total Auto 53,735 45,731 18 SANF 306 1,577 (81) SANF 2,102 2,551 (18) HE KAF 222 40 455 HE KAF* 1,245 679 83 Total SANF & KAF 528 1,617 (67) Total HE 3,347 3,230 4 Asuransi Astra PermataBank • Lower net income by 1% to Rp697 billion. • 9M16 consolidated net loss Rp1.2 trillion (9M15: • 9M16 Gross Written Premium down by 8% year net income Rp938 billion) on year to Rp3.0 trillion. • Loan book decreased by 16% to Rp114 trillion. • RBC : 266%, requirement 120%. • LDR 86% & CAR 19%. • Gross-NPL ratio up from 2.7% at the end of 2015

* Average exchange rate USD/IDR: 13,323 (9M16) & 13,357 (9M15) to 4.9%. 16 Heavy Equipment & Mining United Tractors, which is 59.5%-owned, reported net income 44% lower at Rp3.1 trillion, due to lower heavy equipment and mining contracting revenue, caused largely by low coal prices. There was also a negative impact of the stronger rupiah on translation of its US dollar monetary assets, whereas the previous year saw a positive impact on translation. Revenue (Rp bio) Mining Contracting 11% 38,295 33,897 853 3,320 1,290 4,226 Coal OB Production Removal 23,368 3% 12% 17,731 594.7 524.2 10,650 10,754 78.6 81.4 9M16 9M15 9M16 z 9M15 Construction Machinery Mining Contracting Coal Production (mn tonnes) Overburden Removal (mn bcm) Mining Construction Contracting

Komatsu Unit Sales Coal Mines: Sales

12% 1,799 46 % 1,588 15% 9% 34% 49%

22% 5,746 16% 3,946 26% 29% 9M16 9M15 9M16 9M15 17 Mining Forestry Construction Agro TTA Mine (all in thousand tonnes) Agribusiness Astra Agro Lestari, which is 79.7%-owned, reported net income of Rp1.1 trillion, up from Rp145 billion, due to the benefit of the stronger rupiah on the translation of its US dollar monetary liabilities.

Revenue (Rp bio) CPO Yield (tonne/Ha) 10,347 9,587 7% 25%

3,247 3,060 Export Local 3.49 6,527 7,100 2.60

9M16 9M15 9M16 9M15 CPO Production & Sales (‘K tonnes) Area Maturity (‘K Ha)* 298 298 37 41

CPO CPO Production Sales Immature 19% 12% 1,282 261 Mature 257 1,044 730 826

231 300

9M16 9M15 9M16 9M15 18 Production Sales Olein Sales * Incl. plasma plantation Infrastructure & Logistics

MMS Vehicle Traffic Volume (‘K unit)

3%

The 72.5km Tangerang-Merak toll road, operated by 79.3%-owned Marga Mandalasakti, achieved a 3% 35,395 34,287 increase in traffic volumes to 35 million vehicles.

9M16 9M15

SERA Unit in Contract (unit)

6%

Serasi Autoraya’s net income increased by 43% to Rp68 billion. Higher net margins in used vehicle 24,117 25,578 sales and logistics businesses outweighed the effect of an 6% decline in contracted vehicles in its car leasing and rental business.

9M16 9M15 19 Information Technology Astra Graphia, which is 76.9%-owned, reported a 15% decline in net income to Rp137 billion, despite an increase in revenue mainly due to lower net margins.

Astragraphia Revenue (Rp bio) Astragraphia Net Income (Rp bio)

1,704 15% 1,605

39% 42% 44% AGIT

160 11% 137 61% 58% AGDS

9M16 9M15 9M16 9M15

20 Property

Net Income (Rp bio) Net income from the Group’s new property division was Rp84 billion, significantly higher than the Rp5 billion achieved in the same period 1,580% in 2015.

84 Construction continues to progress at the 92%- sold Anandamaya Residences, the Group’s 60%- owned luxury residential development project located in Jakarta’s Central Business District which, together with the Group’s adjacent grade 5 A office tower, Menara Astra, are on schedule for 9M16 9M15 completion in 2018.

21 Appendices

22 Divisional Net Revenue and Net Income Divisional Net Revenue In Billion Rupiah 9M16 9M15 Change Automotive 69,239 70,347 (2%) Financial Services 13,002 12,742 2% Heavy Equipment & Mining 33,601 38,207 (12%) Agribusiness 9,587 10,347 (7%) Infrastructure & Logistics 5,364 5,037 6% Information Technology 1,495 1,482 1% Property 6 15 (60%) Total 132,294 138,177 (4%) Divisional Net Income In Billion Rupiah 9M16 9M15 Change Automotive 5,995 5,329 12% Financial Services 2,074 2,996 (31%) Heavy Equipment & Mining 1,893 3,342 (43%) Agribusiness 913 116 687% Infrastructure & Logistics 213 86 148% Information Technology 105 123 (15%) Property 84 5 1,580% 23 Total 11,277 11,997 (6%) Car Products Launched in 9M16 Models Launched Launching Period Engine Capacity Prices (Rp mio) Toyota All New Fortuner Jan’16 2,400cc – 2,700cc 442-631.5 Sport Jan’16 1,300cc 168.3-179.3 Toyota Rush Feb’16 1,500cc 237.8-262.5 Feb’16 1,500cc 228.1-242.2 Lexus GSF Mar’16 2,000cc 1,245 Lexus GS Mar’16 2,000cc 1,185 Lexus LX Mar’16 5,700cc 3,015 BMW M2 Apr’16 3,000cc 1,349* Isuzu NMR 71T May’16 4,500cc 387.5-302.5 BMW X1 18i May’16 1,500cc 619* BMW X1 18i xLine May’16 1,500cc 659* Jul’16 1,500cc 230-295 BMW i8 Aug’16 1,500cc 3,499* Astra Daihatsu Sigra Aug’16 1,000cc-1,200cc 106.6-147.4 Astra Toyota Calya Aug’16 1,200cc 132.5-150 Isuzu MU-X 2.5 VGS Aug’16 2,500cc 448-478 Isuzu D-MAX 2.5 VGS Aug’16 2,500cc 341-514.5 *off the road price 24 Motorcycle Products Launched in 9M16

Models Launched Launching Period Engine Capacity Prices (Rp mio) Honda BeAT POP eSP Jan’16 110cc 14.3-15 Honda CBR 150 R Feb’16 150cc 32.5-33.3 Honda CBR 500 R Feb’16 500cc 144 Honda PCX 150 Feb’16 150cc 39.8 Honda Vario 150 eSP Feb’16 150cc 20.7 Honda Vario 125 eSP Feb’16 125cc 17.7-18.3 Honda CB 500 F Feb’16 500cc 133-139 Honda CB 500 X Feb’16 500cc 147 Honda CB 650 F Feb’16 650cc 235 Honda Supra GTR 150 May’16 150cc 21.3-21.5 Honda CBR 250 RR Jul’16 250cc 47.8-56.2 Honda BeAT Sporty eSP Aug’16 110cc 14.7-15.4 Honda CB 150 R Street Fire Aug’16 150cc 25.6-26.6 Honda Sonic 150R Aug’16 150cc 21.4-22

25 National Market Data

9M16 9M15 Major Brands Wholesale Astra Wholesale Astra Toyota - Vios/Limo, Camry, Altis; Honda - City, Civic, Sedan 11,153 48.2% 14,898 52.8% Accord; BMW - 3 Series, 5 Series Toyota - Avanza, Innova, Fortuner, Rush, Sienta; Honda - Mobilio, HR-V, BR-V, Jazz; Daihatsu - Xenia, 4X2 & 4X4 465,414 57.6% 421,407 56.7% Terios, Sirion; Suzuki - Ertiga, APV; Mitsubishi – Pajero Sport, Mirage, Outlander Sport; Nissan – Livina, X-Trail, March

Car Daihatsu –-Gran Max; Suzuki – Carry, APV; Commercial 147,902 31.7% 209,607 33.2% Mitsubishi - Canter, L-300, Strada; Isuzu – Elf, Giga; Panther, D-Max; Toyota - Hi-Lux, Dyna, Hi-Ace Astra Toyota - Agya, Calya; Astra Daihatsu - Ayla, LCGC 159,001 64.4% 118,769 56.3% Sigra; Honda - Brio Satya; Datsun - GO Panca; Suzuki - Karimun Wagon R Total 783,470 53.9% 764,681 50.0% Honda - Supra Series, Revo Series, Blade; Yamaha –

Cub 400,637 68.1% 563,206 52.2% Jupiter MX King, Jupiter ZX, Vega Force; Suzuki –

Smash; Kawasaki - ZX130, Edge Honda - BeAT, Vario, Scoopy; Yamaha - Mio, N-Max, Scooter 3,401,617 77.7% 3,639,362 72.9% Fino; Suzuki – Address, Nex Honda - CB 150 R Street Fire, Verza, CBR 150R, Sport & Others 549,143 47.2% 618,623 26.8% Sonic 150R; Yamaha - V-ixion R - 15, Xabre, Byson; Motorcycle Suzuki - Satria F 150; Kawasaki – Ninja Total 4,351,397 72.9% 4,821,191 67.7%

26 Equity Research Contact Details No Brokerage Analyst Email 1 Bahana Securities Leonardo Henry Gavaza [email protected] 2 BCA Sekuritas Darmawan Halim [email protected] 3 CIMB Securities Indonesia Erindra Krisnawan [email protected] 4 Ciptadana Securities Arief Budiman [email protected] 5 Citigroup Investment Research Ferry Wong [email protected] 6 CLSA Indonesia Sarina Lesmina [email protected] 7 Credit Suisse Securities Indonesia Jahanzeb Naseer [email protected] 8 Danareksa Sekuritas Stefanus Darmagiri [email protected] 9 DBS Vickers Maynard Priajaya Arif [email protected] 10 Deutsche Verdhana Securities Reggy Susanto [email protected] 11 Goldman Sachs Pramod Kumar [email protected] 12 HSBC Tarun Bhatnagar [email protected] 13 IndoPremier Securities Chandra Pasaribu [email protected] 14 J.P. Morgan Aditya Srinath [email protected] 15 Mandiri Sekuritas Ariyanto Kurniawan [email protected] 16 Macquarie Capital Securities Jayden Vantarakis [email protected] 17 Maybank Kim Eng Securities Isnaputra Iskandar [email protected] 18 Merrill Lynch Swati Chopra [email protected] 19 Morgan Stanley Andri Ngaserin [email protected] 20 Nomura Indonesia Elvira Tjandrawinata [email protected] 21 Onix Capital Bagus Hananto [email protected] 22 Reliance Securities Robertus Yanuar Hardi [email protected] 23 RHB OSK Securities Indonesia Andrey Wijaya [email protected] 24 Trimegah Securities Frederick Daniel [email protected] 25 UBS Securities Indonesia Ronald Liem [email protected] 26 UOB Kay Hian Securities Stevanus Juanda [email protected] 27 Valbury Asia Securities Budi Rustanto [email protected] 27 28 Yuanta Securities Indonesia Kim Kwie Sjamsudin [email protected] For further information please contact: PT Astra International Tbk Corporate Investor Relations P: (+62 21) 652 2555 F: (+62 21) 6530 4953 E: [email protected]

28