PT ASTRA INTERNATIONAL TBK Full Year 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 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 5% 56% 74% Higher Result in heavy Significant increase in equipment and loan loss provisions Net earnings per share mining as well as reported by Permata Rp374 Auto Market Share agribusiness Bank For the years ended 31st December 2016 2016 2015 Change Net revenue (Rp bn) 181,084 184,196 (2%) Net income (Rp bn)* 15,156 14,464 5% Net earnings per share (Rp) 374 357 5% As at 31st As at 31st Change December 2016 December 2015 Shareholders’ funds (Rp bn)** 111,951 102,043 10% Net asset value per share (Rp)** 2,765 2,521 10% * 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 year ended 31st December 2016 and 2015 as well as the financial position as at 31st December 2016 and 2015 have been prepared in accordance with Indonesian Financial Accounting Standards and are 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 Water Utility Document Solution •Astra CreditOther • SAN Finance • United Tractors • Astra Agro Lestari • MMS • Palyja •Astra Graphia Companies • Komatsu Astra • Traktor Nusantara • MHI •Toyota Astra Finance Olein Refinery • MTN Sea Port IT Solution Finance Mining Contracting • Tanjung • TMJ • Eastkal • Astra Graphia Banking • Pamapersada Nusantara Sarana Lestari • TBS Information Motorcycle • Bank Permata • Kreasijaya Adhikarya • LMS Technology • Federal Coal 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 31 December 2016 • Astra’s car market share increased from 50% to 56% and Astra’s motorcycle market share increased from 69% to 74%. • Komatsu maintained its leading market position with a 32% market share, down from 36% last year. Car Motorcycle Suzuki Kawasaki 1% 2% Others Yamaha 23% 44% Toyota 36% Heavy Equipment Others 13% Honda Isuzu Daihatsu Sumitomo 74% 18% Komatsu 2% 4% 32% Source : Gaikindo Source : AISI Kobelco 14% Hitachi Caterpillar 20% 17% 4 Source: United Tractors – Internal Market Research Corporate Actions Apr ‘16 • Astratel Nusantara acquired 25% stakes in PT Trans Bumi Serbaraja, a company that operates 30km long Serpong Balaraja Toll Road. Jun ‘16 • Permata Bank completed a rights issue which raised Rp5.5 trillion in order to strengthen its capital base. • General contractor Acset Indonusa, a 50.1% subsidiary of United Tractors, completed a rights issue raising Rp600 billion to support its business growth. • Astra Agro Lestari completed a Rp4.0 trillion rights issue to strengthen its balance sheet. Jul ‘16 • United Tractors, through PT Karya Supra Perkasa, established PT Supra Alphaplus Handal, a synergy in its construction business in manufacturing and distributing concrete products. 5 Corporate Actions Oct ‘16 • PT Astra Land Indonesia, owned 50% by Astra and 50% by Hongkong Land, signed an agreement with a subsidiary of PT Modernland Realty Tbk to acquire and jointly develop a 67-hectare site in Cakung, East Jakarta. • UT, through PT Tuah Turangga Agung, signed a Conditional Shares and Purchase Agreement (CSPA) to acquire coal mining company (coking coal) in Central Kalimantan, PT Suprabari Mapindo Mineral. Dec‘16 • AAL and its subsidiary, PT Eka Dura Perdana, acquired all stakes in PT Mitra Barito Gemilang, a rubber plantation company, rising AAL’s total rubber plantation land to 1,700 hectare. 6 Financial Performances 7 Consolidated Income Statement “The Group’s underlying trading results for the year were satisfactory with steady progress seen in a number of areas. The outlook for 2017 appears positive with improving economic conditions and the benefit of higher coal prices.” - Prijono Sugiarto, President Director - In Billion Rupiah 2016 2015 Change IDR / USD, average 13,330 13,458 (1%) Net Revenue 181,084 184,196 (2%) Gross Profit 36,432 36,710 (1%) Selling, General and Administrative (18,898) (19,498) (3%) Expenses Impairment Losses Related to Mining - (5,255) (100%) Properties Other Income 1,370 3,206 (57%) Shares of Results of Joint Ventures and 3,349 4,467 (25%) Associates Income Tax Expenses (3,951) (4,017) (2%) Non-controlling Interests (3,146) (1,149) 174% Net Income 15,156 14,464 5% 8 Astra Portfolio as at 31 December 2016 2016 2015 Share of Net Income (%) Ownership % Auto Non-Auto Auto Non-Auto 4W Automotive SO – Toyota, Daihatsu, Isuzu 100 Toyota Astra Motor 51 34 31 Astra Daihatsu Motor 32 Isuzu Astra Motor Indonesia 50 2W Automotive Astra Honda Motor 50 24 19 Honda SO 100 Component Astra Otoparts 80 2 2 Financial Services Astra Sedaya Finance 86 Federal International Finance 100 2001 2014 2015 2016 Toyota Astra Financial Services 50 Komatsu Astra Finance 50 60 25 (20)* 24 1 SAN Finance Auto (Incl. auto Asuransi Astra Buana 96 Permata Bank 45 related Financial 89% 63% 76% 85% Astra Life 50 Services) Heavy Equipment & Mining United Tractors 60 Pamapersada Nusantara 60 Tuah Turangga Agung 60 20 16 Non-Auto 11% 37% 24% 15% Acset Indonusa 30 Traktor Nusantara 50 Agribusiness Astra Agro Lestari 80 11 3 Infrastructure, Logistics, IT & Property Marga Mandalasakti 79 SERA 100 Palyja 49 Astra Graphia 77 4 4 Menara Astra 100 Brahmayasa Bahtera 60 Samadista Karya 100 9 * Permata Bank reported a loss of Rp6.5 trillion in 2016. (2015: Permata Bank net income of Rp247 billion). Consolidated Balance Sheet • Astra’s net asset value per share of Rp2,765 at 31 December 2016 was 10% higher than at the end of 2015. • Net cash, excluding the Group’s financial services subsidiaries, was Rp6.2 trillion at 31st December 2016, compared to net cash of Rp1.0 trillion at the end of 2015. The Group’s financial services subsidiaries had net debt of Rp47.7 trillion, compared to Rp44.6 trillion at the end of 2015. In Billion Rupiah 31-Dec-16 31-Dec-15 Change Cash and Cash Equivalents 29,357 27,102 8% Trade Receivables 19,426 18,088 7% Inventories 17,771 18,337 (3%) Financing Receivables 64,639 60,105 8% Investment in Joint Ventures and Associates 33,987 29,640 15% Fixed Assets 43,237 41,702 4% Other Assets 53,438 50,461 6% Total Assets 261,855 245,435 7% Short-term Borrowings 18,764 11,975 57% Trade Payables 22,489 20,557 9% Long-term Debt 52,146 58,674 (11%) Other Liabilities 28,550 27,696 3% Total Liabilities 121,949 118,902 3% Equity Attributable to the Owners of The Parent 111,951 102,043 10% Non – controlling Interest 27,955 24,490 14% Total Equity 139,906 126,533 11% Net Debt 41,553 43,547 (5%) Net Cash (Excl. Financial Services) (6,193) (1,034) 499% 10 Consolidated Cash Flow As at 31 December 2016, Astra’s ending consolidated cash balance (incl. Bank Overdraft) was Rp29.4 trillion. In Billion Rupiah 2016 2015 Change Cash generated from operations 22,734 31,117 (8,383) Tax Payments (4,706) (6,498) 1,792 Interest Received 1,379 1,280 99 Dividend Received 3,820 3,554 266 Net Cash flow provided from Operating Activities 23,227 29,453 (6,226) Net Capex (8,368) (7,499) (869) Net Investment (6,263) (2,251) (4,012) Other Investing 13 (954) 967 Net Cash flow used in Investing Activities (14,618) (10,704) (3,914) Net Proceeds / (Repayments) of Debt 2,685 (2,120) 4,805 Finance Costs Paid (2,042) (718) (1,324) Dividend Payments (8,140) (10,585) 2,445 Other Financing 1,609 16 1,593 Net Cash flow used in Financing Activities (5,888) (13,407) 7,519 Increase in Cash 2,721 5,342 (2,621) Opening Cash Balance (incl.