PT Astra International Tbk 9M 2015 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 • Consolidated net revenue 8% lower at Rp 138.2 trillion • Net earnings per share down 17% to Rp 296 • Unit car sales down by 20% and motorcycles down by 14% • Lower contribution from all segments except heavy equipment and mining Period ended 30th September 2015 2014* Change Net revenue (Rp bn) 138,177 150,582 (8%) Net income (Rp bn)** 11,997 14,499 (17%) Net earnings per share (Rp) 296 358 (17%) As at 30th As at 31st Change September 2015 December 2014* Shareholders’ funds (Rp bn)*** 100,313 95,494 5% Net asset value per share (Rp)*** 2,478 2,359 5% * Restated due to implementation of PSAK 24 (revised 2013) – Employee Benefits ** 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 nine months ended 30th September 2015 and 2014 as well as the financial position as at 30th September 2015 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. 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• MMS: 72km • Daihatsu Companies • MHI • United Tractors •MTN : 11km • Astra Graphia • Isuzu • Toyota Astra • MTN • Traktor • Astra Agro Lestari •MHI : 41km • BMW Finance • TMJ • Peugeot Nusantara • UD Trucks Logistics Motorcycle Logistics IT Solution • SERA / TRAC • Federal Mining Contracting •SERA / TRAC Motorcycle • Mobil 88 (used) • Astra Graphia International •Mobil 88 (used) Finance • SELOG Information • Pamapersada •SELOG • Toyofuji Logistics Technology • Honda Nusantara •TFLI Heavy Equipment Indonesia Water Utility Office Services • SAN Finance Water Utility Component • Komatsu Astra • Palyja Coal Mining • Astra Graphia Finance Palyja Sea Port Xprins Indonesia • Astra Otoparts • Tuah Turangga Banking Agung • Eastkal Fuel Logistic Property • Bank Permata Construction •GresikMenara Terminal Astra Contractor • Anandamaya Insurance ResidencesSea Port • • Asuransi Astra Acset Indonusa Buana Eastkal • Astra Life 3 Market position at 30 September 2015 • Astra’s car market share decreased from 51% to 50%, while Astra’s motorcycle market share increased from 63% to 68%. • Komatsu maintained its leading market position with a 37% market share, down from 40% last year. Car Motorcycle Kawasaki Others Suzuki 2% 8% 2% Honda Toyota Yamaha 15% 32% 28% Nissan 3% Suzuki Honda 12% Heavy Equipment 68% Daihatsu Others Mitsubishi Isuzu 17% 13% 11% 2% Kobelco Komatsu Source : Gaikindo Source : AISI 10% 37% Hitachi 19% Caterpillar 21% Source: United Tractors – Internal Market Research 4 Corporate actions Jan ‘15 • United Tractors acquired 40% of PT Acset Indonusa Tbk, a construction company for a purchase consideration of Rp 650 billion. • Astra Agro Lestari acquired 50% of PT Kreasijaya Adhikarya, a refinery operator in Dumai, Riau Province, with a daily production capacity of 2,000 tonnes of CPO, for a purchase consideration of Rp 75 billion. Apr ‘15 • United Tractors through Pama Persada Nusantara acquired 75.5% of PT Sumbawa Jutaraya, a gold mining company, for USD 7.4 million. May ‘15 • United Tractors acquired a further 10.1% shares of Acset Indonusa, raising its shareholding to 50.1%. • Astra Honda Motor started exporting the All New Honda Beat eSP to the Philippines to expand the market. Jun‘15 • AOP acquired a further 25.8% interest in SKF Indonesia, a bearing producer for Rp 67 billion, raising AOP’s shareholding to 40%. 5 Corporate actions Jul ‘15 • During July, Astratel announced the acquisition of a 25% stake in the 73 km Semarang - Solo toll road. Aug ‘15 • AOP and Bridgestone Indonesia signed a JV agreement to establish a joint venture, Bridgestone Astra Indonesia, with ownership structure: Bridgestone 51% and AOP 49%. Sep ‘15 • AHM commenced its new 5th plant in Karawang with additional production capacity of 500 thousand units per year for sport type, increasing the annual production capacity to 5.8 million units per year. 6 Financial Performance Consolidated income statement “The challenging trading conditions facing the Group are set to continue and we expect our trading performance to remain little changed for the remainder of the year.” - Prijono Sugiarto, President Director - In Billion Rupiah 9M15 9M14* Change IDR / USD, average 13,357 11,766 14% Net Revenue 138,177 150,582 (8%) Gross Profit 27,263 28,787 (5%) Selling, General and Administrative (14,520) (14,127) 3% Expenses Other Income 2,091 2,222 (6%) Equity Income 3,557 4,642 (23%) Income Tax Expenses (3,780) (4,051) (7%) Non-controlling interests (2,614) (2,974) (12%) Net Income 11,997 14,499 (17%) * Restated due to implementation of PSAK 24 (revised 2013) – Employee Benefits 8 Astra portfolio as at 30 September 2015 Ownership Share of NI % % 9M15 9M14 Auto Non-Auto Auto Non-Auto 4W Automotive SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 51 26 23 Astra Daihatsu Motor 32 Isuzu Astra Motor Indonesia 45 2W Automotive 17 15 Astra Honda Motor 50 2001 2013 2014 9M15 Honda SO 100 Component Astra Otoparts 80 1 3 Auto (Incl. auto related Financial 89% 68% 63% 65% Financial Services Services) Astra Sedaya Finance 86 Federal International Finance 100 Toyota Astra Financial Services 50 Komatsu Astra Finance 50 21 4 19 7 Non-Auto 11% 32% 37% 35% SAN Finance 60 Asuransi Astra Buana 96 Permata Bank 45 Astra Life 50 Heavy Equipment & Mining United Tractors 60 28 Pamapersada Nusantara 60 20 Tuah Turangga Agung 60 Traktor Nusantara 50 Agribusiness Astra Agro Lestari 80 1 10 Infrastructure, Logistics, IT & Others SERA 100 Palyja 49 2 3 Marga Mandalasakti 79 Astra Graphia 77 9 Consolidated balance sheet • Astra’s net asset value per share of Rp 2,478 at 30th September 2015 was 5% higher than at the end of 2014. • Net debt excluding the Group’s financial services subsidiaries, was Rp 283 billion, compared to net debt of Rp 3.3 trillion at the end of 2014. The Group’s financial services subsidiaries had net debt of Rp 47.5 trillion, compared to Rp 45.9 trillion at 2014 year end. In Billion Rupiah 30-Sep-15 31-Dec-14* Change Cash and Cash Equivalents 24,778 20,902 19% Trade Receivables 21,176 21,332 (1%) Inventories 17,819 16,986 5% Financing Receivables 60,773 60,705 0% Investment in Joint Ventures and Associates 29,539 27,218 9% Fixed Assets 42,273 41,250 2% Other Assets 59,401 47,634 25% Total Assets 255,759 236,027 8% Short-term Borrowings 8,579 10,586 (19%) Trade Payables 22,021 18,839 17% Long-term Debt 63,933 59,486 7% Other Liabilities 34,616 26,929 29% Total Liabilities 129,149 115,840 11% Equity Attributable to the Owners of The Parent 100,313 95,494 5% Non – controlling Interest 26,297 24,693 6% Total Equity 126,610 120,187 5% Net Debt (47,734) (49,170) (3%) Net Debt (Excl. Financial Services) (283) (3,314) (91%) * Restated due to implementation of PSAK 24 (revised 2013) – Employee Benefits 10 Consolidated cash flow As at 30th September 2015, Astra’s ending consolidated cash balance (incl. Bank Overdraft) was Rp 24.6 trillion. In Billion Rupiah 9M15 9M14 Change Cash generated from operations 23,757 13,553 10,204 Tax Payments (4,327) (3,860) (467) Interest received 951 950 1 Dividend Received 2,682 2,935 (253) Net Cash flow provided from Operating Activities + 23,063 13,578 9,485 Dividend Received Net Capex (5,605) (8,223) 2,618 Net Investment (2,494) (1,365) (1,129) Other Investing (995) (325) (670) Net Cash flow used in Investing Activities – Dividend (9,094) (9,913) 819 Received Net Proceeds of Debt (4,808) 2,549 (7,357) Finance Costs Paid (442) (754) 312 Dividend Payments (7,538) (7,130) (408) Other Financing 20 2,194 (2,174) Net Cash flow used in Financing Activities (12,768) (3,141) (9,627) Increase/ (Decrease) in Cash 1,201 524 677 Opening Cash Balance (incl.