2013 Results Presentation - Astra International

PT Astra International Tbk2013 Results Presentation

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Overview Indonesia economic growth slowed moderately to 5.78% in2013 (2012: 6.23%), driven by slowdown in investment whileconsumption remained strong Strong results from the Group’s financial services and miningcontracting businesses were offset by a decline in earnings fromthe Group’s heavy equipment and palm oil businesses. While automotive demand remained favourable, increasedcompetition coupled with higher labour costs led to the earningscontribution from the car sector being little changed.2

Highlights Indonesia economic growth slowed moderately to 5.78% in 2013 (2012: 6.23%),driven by slowdown in investment while consumption remained strong Strong results from the Group’s financial services and mining contractingbusinesses were offset by a decline in earnings from the Group’s heavyequipment and palm oil businesses. While automotive demand remained favourable, increased competition coupledwith higher labour costs led to the earnings contribution from the car sectorbeing little changed.Period ended 31st December20132012Net Revenue (Rp bn)193,880188,0533%Net Income (Rp bn)*19,41719,4210%4804800%As at 31stDecember 2013As at 31stDecember 201283,93871,20118%2,0731,75918%Net earnings per share (Rp)Shareholders’ Funds (Rp bn)**Net asset value per share (Rp)**ChangeChange* 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.3

Business structureAutomotiveAutomobile Toyota Daihatsu Isuzu BMW Peugeot UD TrucksMotorcycleFinancial Services Heavy Equipment Agribusiness& MiningAutomobile Astra CreditCompanies Toyota AstraFinanceFederal Intl.FinanceHeavy EquipmentAstra Otoparts SAN Finance Komatsu AstraFinanceBankingOthersAstraworld United Tractors onMachineryBank PermataInsuranceAsuransi AstraBuanaPalm OilAstra Agro LestariInfrastructure& LogisticsToll Road MMS : 72km MTN : 11km MHI : 41kmInformationTechnologyDocumentSolutionAstra GraphiaLogisticsMining ContractorPAMA PersadaNusantara SERA / TRAC Mobil 88 (used) SELOG TFLIIT SolutionAstra GraphiaInformationTechnologyWater UtilityCoal Mining PMM TTA ABP BEE ABB / ABJ DS / DN PJUPalyjaFuel LogisticGresik TerminalSea PortEastkal4

Market position at 31 December 2013 Astra’s car market share declined from 54% to 53%, while Astra’s motorcycle market shareincreased from 58% to 61%. Komatsu’s market share was 41% and maintained it’s leading market position despite tightcompetition and weaker demand for heavy equipment due to lower commodity y belco17%Source : GaikindoKomatsu41%Source : AISIHitachi21%Caterpillar19%Source: United Tractors – Internal Market Research5

Corporate actionsJan ‘13 Astratel acquired 100% share of PT Pelabuhan Penajam BanuaTaka (Eastkal Seaport) in Balikpapan, East Kalimantan for Rp442 billion, to provide an integrated logistic hub for Astra group.March ‘13 Pama Persada completed final payment of USD 80m to increaseits ownership to 75.40% in Asmin Bara Bronang/Jaan coal mines.April ‘13 AOP acquired 51% share of PT Pakoakuina (Pako), a wheel rimmanufacturer, for Rp 700 billion.May ‘13 AOP completed right issue of Rp 3.0 trillion, with AI participation ofRp 2.9 trillion.May ‘13 AI placed 15.7% of AOP shares at a price of Rp 3,750 per share toincrease the liquidity of the stock, generating Rp 2.8 trillion in grossproceeds.6

Corporate actionsAug ‘13Sep ‘13Oct ‘13 AAL established a joint venture in Singapore (Astra – KLK Pte. Ltd),to market its palm oil products. AAL holds a 49% stake andMalaysian partner KL-Kepong Plantation Holdings owns 51%. Astra commercially launched the Low Cost Green Cars AstraToyota Agya and the Astra-Daihatsu Ayla. AI announced agreements to develop 2.4 hectares of landfor an office tower and residential apartment complex incentral Jakarta.Dec ‘13 Bank Permata completed a Rp 2.2 trillion senior andsubordinated debt issuance.Jan ‘14 Bank Permata completed a Rp 1.5 trillion rights issue. JV Agreement signed with Aviva plc to form Astra Aviva Life.7

Financial Performance

Consolidated income statement“The Group produced satisfactory results in 2013, particularly as a number of ourbusinesses faced challenging conditions. The outlook for 2014 remains sound, although itis expected that there will continue to be heightened competition in the car market andweakness in coal prices, while concerns remain about increases in interest rates andrupiah volatility.”- Prijono Sugiarto, President DirectorIn Billion RupiahUSD / IDR, %35,31136,200(2%)(16,708)(16,330)2%Other Income2,6232,35212%Equity Income6,2975,67611%Income Tax Expense(5,226)(5,156)1%Non-controlling interest(2,880)(3,321)(13%)Net Income19,41719,4210%RevenueGross ProfitOperating Expenses9

Astra portfolio as at 31 December 2013Share of NI %Ownership%2013Auto2012Non-AutoAutoNon-Auto4W AutomotiveSO – Toyota, Daihatsu, IsuzuToyota Astra MotorAstra Daihatsu MotorIsuzu Astra Motor Indonesia1005132453130Net income contribution Auto vs.Non-Auto segments:5010015142001 201180552W AutomotiveAstra Honda MotorHonda SOComponentAstra Otoparts1001005050609645175152013Auto (Incl. autoFinancial ServicesAstra Sedaya FinanceFederal International FinanceToyota Astra Financial ServicesKomatsu Astra FinanceSAN FinanceAsuransi Astra BuanaPermata Bank20124related Financial 89%Services)61%64%68%Non-Auto39%36%32%11%Heavy Equipment & MiningUnited TractorsPamapersada NusantaraAgribusinessAstra Agro Lestari606015188071054Infrastructure, Logistics, ITSERAPalyjaMarga MandalasaktiAstra Graphia10049797710

Consolidated balance sheet Astra’s net asset value of Rp 2,073 per share at 31st December 2013 was 18% higher than at the end of 2012. Net debt at 31st December 2013, exclusive of the Group’s financial services subsidiaries, was Rp 3.7 trillion,mainly due to the sell down of 15.7% stake in Astra Otoparts and a reduction in working capital in the Group’sheavy equipment businesses.In Billion RupiahCash and Cash EquivalentsTrade ReceivablesInventoriesFinancing ReceivablesInvestments in Associates and Jointly Controlled EntitiesFixed AssetsOther AssetsTotal AssetsShort-term BorrowingsTrade PayablesLong-term DebtOther LiabilitiesTotal LiabilitiesEquity Attributable to The Owners of The ParentNon – controlling InterestTotal EquityNet DebtNet Debt (Excl. Financial 20%18%1%(59%)11

Consolidated cash flowThe Group’s cash balance at 31 December 2013 increased by Rp 7.7 trillion, mainly driven bystronger working capital inflows.In Billion Rupiah20132012ChangeCash from operations26,69013,94312,747Tax )24,58612,99411,592Net Capex(9,998)(10,576)578Net Investment(1,321)(2,534)1,213Other 63(7,083)Interest Payment(1,105)(990)(115)Dividend ,4611781,28318,555*10,815*7,740Interest receivedDividends ReceivedCash flow from Operating Activities Dividends ReceivedCash flow for Investing ActivitiesNet proceed of DebtOther FinancingCash flow from Financing ActivitiesIncrease/(Decrease) in CashOpening Cash BalanceExchange Rate AdjustmentClosing Cash Balance* Inclusive of bank overdraft12

Business Updates

Historical domestic car salesThe wholesale market for cars grew by 10% in 2013, benefitting from rising incomes andincreased domestic capacity1,2301,116In thousand unitsAstraFuel price increase( 40%)OthersLehman Crisis( 120122013Sedan8%11%8%7%6%6%6%5%4%3%3%3%4x2 & 7%36%36%31%31%28%30%26%29%33%30%28%Source: Gaikindo14

Automotive – car & wholesale marketAstra’s car sales rose by 8%, leading to a decline in market share from 54% to 53%20121,116,23020131,229,901Others 8.4%Nissan 5.0%Honda 7.4%Others 9.2%Nissan 6.0%Honda 6.2%Others511,03945.8%Commercial335,13530.0%Suzuki 54.2%4x2 & 4x479.4%AI ProductSegment4x2 & 4x4746,37366.9%Toyota36.4%Sedan 3.%M/S2012Commercial16.6%Isuzu 3.0%Daihatsu14.6%BrandSuzuki 13.3%4x2 & 4x464.4%Sedan 3.1%Sedan 56.6%SegmentAI 13.3%Commercial17.4%Commercial349,61628.4 %Astra654,55853.2%Isuzu 2.6%Daihatsu15.1%4x2 & 4x480.4%4x2 & 4x4845,54168.7%4x2 & 4x462.3%Toyota35.4%Sedan 3.0%M/S2013AI ProductSegmentBrandSedan 2.8%Sedan 43.1%SegmentAI ProductM/SSource: Gaikindo15

Automotive – car product launchesDuring 2013, Astra launched 23 new models and 12 facelift modelsToyota Etios ValcoMarch 2013Isuzu Giga FVM High PowerSeptember 2013All New ViosMay 2013Peugeot 208 GTiSeptember 2013Astra Daihatsu AylaSeptember 2013BMW Z4 sDriveSeptember 2013Astra Toyota AgyaSeptember 2013Lexus ES SeriesOctober 201316

Historical domestic motorcycle sales The wholesale market for motorcycles grew by 10% in 2013 to 7.7 millionShifting consumer demand from cub to automatic scooter type, and improvedcontribution from sport typeMin. DPrequirementFuel price increase( 13%)In thousand unitsAstraOthers3,8882,2878502,810Lehman Crisis( 9%8%8%9%11%9%9%11%14%18%2010Source: AISI17

Automotive – motorcycle & wholesale marketAstra Honda Motor’s sales increased by 15%, with it’s market share increasing from 58%to 61%201220137,064,4577,743,879Others 2.0%Others 1.9%Sport/Others17.0 %Suzuki, 5.9%Sport & 125.9%Brand2012Source: AISISport/Others29.3%Suzuki, 5.1%Honda SegmentScooter2,859,98968%Cub1,058,28157.1%Honda 26.2%SegmentSport & 425,07570%Cub874,75718.6%Cub874,75758.5%Honda SegmentHonda gment18

Automotive – motorcycle product launchesDuring 2013, Astra Honda Motor launched 2 new models and 9 revamped modelsHonda VerzaJanuary 2013Supra X 125 Helm-In FIJuly 2013Honda Scoopy FIFebruary 2013Honda CBR 150 ROctober 2013Honda Vario 125 CBS Idling StopMarch 2013Honda CB 150 RDecember 201319

Automotive - componentsAstra Otoparts, the Group’s 80%-owned automotive components business, reported net income ofRp 1 trillion, a decrease of 4%. The decline in earnings was largely due to higher raw material andlabour costs that could not be passed on fully to customers.Revenue (IDR billion)Net Income (IDR 682013After Market605OEM68%51%2012OEMExport7%Equity IncomeOEM56%4012013Consolidated20