PT ASTRA INTERNATIONAL TBK PUBLIC EXPOSE First Half of 2017 - Results Presentation 9 August 2017, Indonesia Stock Exchange 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 • Strong recovery in coal prices 31% 56% 74% Positive benefited heavy equipment and contribution mining contracting volumes from • Agribusiness improved with higher Net earnings per share Permata Bank crude palm oil prices and Rp231 Auto Market Share production 6 months ended 30th June 2017 2016 Change Net revenue (Rp bn) 98,031 88,208 11% Net income (Rp bn)* 9,357 7,116 31% Net earnings per share (Rp) 231 176 31% As at 30th As at 31st Change June 2017 December 2016 Shareholders’ funds (Rp bn)** 116,627 111,951 4% Net asset value per share (Rp)** 2,881 2,765 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 six months ended 30th June 2017 and 2016 as well as the financial position as at 30th June 2017 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2016 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 • Toyota •Honda • Brahmayasa Bahtera • Daihatsu • Samadista Karya • Isuzu Component • Astra Land Indonesia • BMW •Astra • Astra Modern Land • Peugeot Otoparts • UD Trucks Others •AstraWorld Automobile Heavy Equipment Construction Machinery Palm Oil Plantation Toll Road Sea Port Document Solution •Astra CreditOther • SAN Finance • United Tractors • Astra Agro Lestari • MMS • Eastkal •Astra Graphia Companies • Komatsu Astra • Traktor Nusantara • MHI •Toyota Astra Finance Refineries • MTN Water Supply IT Solution Finance Mining Contracting • Tanjung Sarana Lestari • TMJ • Palyja • Astra Graphia Banking • Pamapersada Nusantara • Kreasijaya Adhikarya • TBS Information Motorcycle • Permata Bank • Tanjung Bina Lestari • LMS Technology • Federal Mining International Insurance • Tuah Turangga Agung Commodity Trading Logistics Office Services Finance • Asuransi Astra • Astra-KLK Pte.Ltd • SERA / TRAC • Astragraphia Xprins Buana Construction Industry • Mobil88 Indonesia • Astralife • Acset Indonusa Cattle in Palm Oil • SELOG Plantation • TFSI • Agro Menara Rahmat 3 Market Position as at 30 June 2017 • Astra’s car market share increased from 51% to 56% and Astra’s motorcycle market share increased from 73% to 74%. • Komatsu maintained its leading market position with a 37% market share, higher than the same period last year. Car Motorcycle Suzuki Kawasaki 1% 2% Others Yamaha 43% 23% Toyota 37% Heavy Equipment Others 15% Honda Isuzu Daihatsu 74% 2% 18% Komatsu 37% Source : Gaikindo Kobelco Source : AISI 14% Hitachi Caterpillar 17% 17% 4 Source: United Tractors – Internal Market Research Corporate Actions Jan ‘17 • Astratel Nusantara completed the acquisition of an initial 40% interest in PT Baskhara Utama Sedaya, which owns 45% of the operator of the fully operational 116km Cikopo-Palimanan toll road, and has subsequently conditionally agreed to acquire the remaining 60% interest. Mar‘17 • United Tractors through Unitra Persada Energia owned 25% Bhumi Jati Power, which will develop and operate two 1,000 MW thermal power plants in Central Java, completed its project financing agreement with lenders. This build, operate and transfer project is expected to cost approximately US$4.2 billion and is scheduled to start commercial operation in 2021. Bhumi Jati Power is a joint venture with Sumitomo Power Corporation and Kansai Electric Power. Mar‘17 • United Tractors through its subsidiary Tuah Turangga Agung, completed the acquisition of an 80.1% stake in PT Suprabari Mapanindo Mineral, a coking coal company in Central Kalimantan. 5 Corporate Actions May‘17 • Astratel Nusantara acquired of the remaining 60% interest in PT Baskhara Utama Sedaya, which owns 45% stakes of the fully operational 116km Cikopo- Palimanan toll road. The total acquisition cost of the Group’s ownership of PT Baskhara Utama Sedaya is approximately Rp5 trillion. • Astratel Nusantara increased its stakes in the 73km Semarang-Solo toll road from 25% to 40%. Jun‘17 • Permata Bank completed its Rp3.0 trillion right issue. 6 Financial Performances 7 Consolidated Income Statement “Most of the Group’s businesses performed well in the first half of 2017. For the remainder of this year, the Group is expected to continue to benefit from stable coal prices, although results may be tempered by increasing competition in the car market and soft demand in the motorcycle market.” - Prijono Sugiarto, President Director - In Billion Rupiah 1H17 1H16 Change IDR / USD, average 13,330 13,419 (1%) Net Revenue 98,031 88,208 11% Gross Profit 19,674 16,847 17% Selling, General and Administrative (10,387) (9,381) 11% Expenses Other Income 878 695 26% Shares of Results of Joint Ventures and 3,772 2,071 82% Associates Income Tax Expenses (2,580) (1,922) 34% Non-controlling Interests (2,000) (1,194) 68% Net Income 9,357 7,116 31% 8 Astra Portfolio as at 30 June 2017 1H17 1H16 Share of Net Income (%) Ownership % Auto Non-Auto Auto Non-Auto 4W Automotive SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 50 25 31 Astra Daihatsu Motor 32 Isuzu Astra Motor Indonesia 50 2W Automotive Astra Honda Motor 50 18 21 Honda SO 100 Component Astra Otoparts 80 2 2 Financial Services Astra Sedaya Finance 86 2001 2015 2016 1H17 Federal International Finance 100 Toyota Astra Financial Services 50 Komatsu Astra Finance 50 20 2 25 (7) Auto (Incl. auto 60 SAN Finance related Financial 89% 76% 85% 65% Asuransi Astra Buana 96 Permata Bank 45 Services) Astra Life 50 Heavy Equipment & Mining 60 United Tractors Non-Auto 11% 24% 15% 35% Pamapersada Nusantara 60 Tuah Turangga Agung 60 22 16 Acset Indonusa 30 Traktor Nusantara 50 Agribusiness Astra Agro Lestari 80 9 9 Infrastructure, Logistics, IT & Property Marga Mandalasakti 79 SERA 100 Palyja 49 Astra Graphia 77 2 3 Menara Astra 100 Brahmayasa Bahtera 60 Samadista Karya 100 9 Consolidated Balance Sheet • Net asset value per share was Rp2,881 at 30th June 2017, 4% higher than at the end of 2016. • Net cash, excluding the Group’s financial services subsidiaries, was Rp2.6 trillion, significantly lower compared with net cash of Rp6.2 trillion at the end of 2016, mainly due to toll road, power plant and property investments made during the first half of 2017. The Group’s financial services subsidiaries had net debt of Rp49.1 trillion, compared with Rp47.7 trillion at the end of 2016. In Billion Rupiah 30-Jun-17 31-Dec-16 Change Cash and Cash Equivalents 31,725 29,357 8% Trade Receivables 22,539 19,426 16% Inventories 18,902 17,771 6% Financing Receivables 65,600 64,639 1% Investment in Joint Ventures and Associates 37,649 33,987 11% Fixed Assets 46,067 43,237 7% Other Assets 64,135 53,438 20% Total Assets 286,617 261,855 9% Short-term Borrowings 19,742 18,764 5% Trade Payables 28,565 22,489 27% Long-term Debt 58,449 52,146 12% Other Liabilities 34,345 28,550 20% Total Liabilities 141,101 121,949 16% Equity Attributable to the Owners of The Parent 116,627 111,951 4% Non – controlling Interest 28,889 27,955 3% Total Equity 145,516 139,906 4% Net Debt (Cash) 46,466 41,553 12% Net Cash