PT Astra International Tbk Full Year 2014 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. Highlights Improved results from the Group’s agribusiness, contract mining operations and financial services businesses were offset by lower earnings from the automotive businesses, and impairment charge in relation to coal mining properties. Period ended 31st December 2014 2013 Change Net Revenue (Rp bn) 201,701 193,880 4% Net Income (Rp bn)* 19,181 19,417 (1%) Net earnings per share (Rp) 474 480 (1%) Net Income exc. impairment (Rp bn) 20,100 19,417 4% As at 31st As at 31st Change December 2014 December 2013 Shareholders’ Funds (Rp bn)** 95,611 83,938 14% Net asset value per share (Rp)** 2,362 2,073 14% * 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. 2 Business structure Automotive Financial Services Heavy Equipment Agribusiness Infrastructure, Information & Mining Logistics & Technology Others Automobile Automobile Construction Palm Oil Toll Road Document Machinery Solution •Toyota •Astra Credit •MMS : 72km •Daihatsu Companies •United Tractors •MTNMHI : 11km41km Astra Graphia •Isuzu •Toyota Astra •Traktor Astra Agro Lestari •MHIMTN : 41km11km •BMW Finance •Peugeot Nusantara •UD Trucks Logistics Motorcycle Logistics IT Solution •SERA / TRAC Mining Contracting •SERA / TRAC Motorcycle Federal Intl. •Mobil 88 (used) Astra Graphia •Mobil 88 (used) Finance •SELOG Information Pamapersada •SELOG •Toyofuji Logistics Technology Honda Nusantara •TFLI Heavy Equipment Indonesia Water Utility •SAN Finance Water Utility Component •Komatsu Astra Coal Mining Palyja Finance Palyja Fuel Logistic Astra Otoparts Tuah Turangga Banking Agung Gresik Terminal Fuel Logistic Sea Port Bank Permata General GresikEastkal Terminal Construction Property Insurance Acset Indonusa Sea Port • Asuransi Astra •Menara Astra Buana •AnandamayaEastkal • Astra Life Residences 3 Market position at 31 December 2014 • Astra’s car market share decreased from 53% to 51%, while Astra’s motorcycle market share increased from 61% to 64%. • Komatsu maintained its leading market position with a 40% market share, marginally down from 41% last year. Car Motorcycle Kawasaki Others Suzuki 2% 9% 4% Honda Toyota 13% 33% Yamaha Nissan 30% 3% Suzuki Honda 13% Heavy Equipment 64% Others Daihatsu Mitsubishi 10% Isuzu 15% 12% 2% Kobelco Source : Gaikindo 12% Komatsu Source : AISI 40% Hitachi 20% Caterpillar 18% Source: United Tractors – Internal Market Research 4 Corporate actions • Jan ‘14 Bank Permata completed a Rp 1.5 trillion right issue at a price of Rp 1,242 per share. • Bank Permata acquired a 25% share of Astra Sedaya Finance Mar ‘14 amounting to Rp 2.2 trillion. • Astra International established a 50:50 Joint Venture “Astra Life” May‘14 with Aviva plc, to provide life insurance products in Indonesia. • Astra Graphia sold its 51% interest in AGIT Monitise Jun‘14 Indonesia, and recorded a gain on disposal of Rp 44 billion. 5 Corporate actions • Astra Agro Lestari acquired 100% of oil palm plantation firm Jul‘14 PT Palma Plantasindo in East Kalimantan, for Rp 309 billion. • United Tractors and Pamapersada Nusantara restructured their Sep‘14 coal mines under a common holding company, Tuah Turangga Agung. • United Tractors entered into an agreement to acquire a majority Dec‘14 share in Acset Indonesia. • AHM commenced its new plant 4 in Karawang with additional production capacity of 1.1 million units per year, increasing the annual production capacity by 26% to 5.3 million units per year. 6 Financial Performance Consolidated income statement “The Group's 2014 results were mixed, with strong performances from agribusiness and contract mining being offset by a decline in contribution from automotive and a non-cash impairment charge recorded in relation to coal mining properties. While we remain cautious about the immediate outlook given the uncertain external macro environment, competition in the car market and the likelihood of lower coal prices, we note that the Group is well financed and the quality of our businesses provides the basis for excellent prospects over the longer term.” - Prijono Sugiarto, President Director In Billion Rupiah 2014 2013 Change USD / IDR, average 11,885 10,563 13% Revenue 201,701 193,880 4% Gross Profit 38,809 35,311 10% Operating Expenses (18,646) (16,708) 12% Other Income 950 2,623 (64%) Equity Income 6,239 6,297 (1%) Income Tax Expense (5,227) (5,226) 0% Non-controlling interest (2,944) (2,880) 2% Net Income 19,181 19,417 (1%) 8 Astra portfolio as at 31 December 2014 Ownership Share of NI % % 2014 2013 Auto Non-Auto Auto Non-Auto Increased contribution from Non- 4W Automotive Auto segment, driven by SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 51 26 31 Agribusiness and Contract Mining: Astra Daihatsu Motor 32 Isuzu Astra Motor Indonesia 45 2W Automotive 15 15 Astra Honda Motor 50 2001 2012 2013 2014 Honda SO 100 Component Astra Otoparts 80 3 5 Auto (Incl. auto related Financial Services) 89% 64% 68% 63% Financial Services Astra Sedaya Finance 75 Federal International Finance 100 Toyota Astra Financial Services 50 Non-Auto 11% 36% 32% 37% Komatsu Astra Finance 50 19 6 17 5 SAN Finance 60 Asuransi Astra Buana 96 Permata Bank 45 Astra Life 50 Heavy Equipment & Mining United Tractors 60 Pamapersada Nusantara 60 17 15 Tuah Turangga Agung 60 Tractor Nusantara 50 Agribusiness Astra Agro Lestari 80 10 7 Infrastructure, Logistics, IT SERA 100 Palyja 49 4 5 Marga Mandalasakti 79 Astra Graphia 77 9 Consolidated balance sheet • Astra’s net asset value of Rp 2,362 per share at 31st December 2014 was 14% higher than at the end of 2013. • Net debt at 31st December 2014, exclusive of the Group’s financial services subsidiaries, was Rp 3.3 trillion, a 10% decrease, compared to net debt of Rp 3.7 trillion at the end of 2013. In Billion Rupiah 31-Dec-14 31-Dec-13 Change Cash and Cash Equivalents 20,902 18,557 13% Trade Receivables 21,332 19,843 8% Inventories 16,986 14,433 18% Financing Receivables 60,705 54,677 11% Investment in Jointly Controlled Entities and Associates 27,250 23,870 14% Fixed Assets 41,250 37,862 9% Other Assets 47,604 44,752 6% Total Assets 236,029 213,994 10% Short-term Borrowings 10,586 12,854 -18% Trade Payables 18,839 1 17,275 9% Long-term Debt 59,486 51,669 15% Other Liabilities 26,794 26,008 3% Total Liabilities 115,705 107,806 7% Equity Attributable to Owners of The Parent 95,611 83,938 14% Non – controlling Interest 24,713 22,250 11% Total Equity 120,324 106,188 13% Net Debt (49,170) (45,966) 7% Net Debt (Excl. Financial Services) (3,314) (3,687) -10% 10 Consolidated cash flow As at 31 December 2014, Astra’s ending consolidated cash balance was Rp 20.7 trillion. In Billion Rupiah 2014 2013 Change Cash from operations 19,280 26,690 -28% Tax Payments (5,588) (6,382) -12% Interest received 1,271 942 35% Dividends Received 4,062 3,336 22% Cash flow from Operating Activities + Dividends Received 19,025 24,586 -23% Net Capex (10,771) (9,998) 8% Net Investment (2,418) (1,321) 83% Other Investing (437) (323) 35% Cash flow for Investing Activities – Dividends Received (13,626) (11,642) 17% Net proceeds of Debt 4,874 2,080 134% Finance Costs Paid (912) (1,105) -17% Dividend Payments (10,201) (10,017) 2% Other Financing 2,194 2,377 -8% Cash flow for Financing Activities (4,045) (6,665) -39% Increase/ (Decrease) in Cash 1,354 6,279 -78% Opening Cash Balance (incl. Bank Overdraft) 18,555 10,815 72% Exchange Rate Adjustment 819 1,461 -44% Closing Cash Balance (incl. Bank overdraft) 20,728 18,555 12% 11 Business Updates Historical domestic car sales Annual sales decline in 2014 for the first time since 2009. LTV Policy (↑25%) 1,230 1,208 1,116 In thousand units Fuel price increase Lehman Crisis 894 (↓40%) Astra Others (↓20%) 575 594 764 511 608 411 534 338 484 434 486 354 290 275 319 266 205 211 605 655 614 207 144 426 483 259 318 281 147 218 175 223 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Segment 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sedan 11% 8% 7% 6% 6% 6% 5% 4% 3% 3% 3% 2% 4x2 & 4x4 53% 56% 62% 63% 66% 64% 69% 67% 64% 67% 69% 71% Commercial 36% 36% 31% 31% 28% 30% 26% 29% 33% 30% 28% 27% Source: Gaikindo 13 Automotive – wholesale car market Astra’s car sales fell by 6% to 614,000 units, with its market share decreasing from 53% to 51%.