Jardine Matheson : PT Astra International Tbk 2016 First Half Financial Statements

To: Business Editor 28th July 2016

For immediate release

PT Astra International Tbk 2016 First Half Financial Statements

The following announcement was issued today by the Company's 75%-owned subsidiary, Jardine Cycle & Carriage Limited, which holds 50.1% of PT Astra International Tbk.

For further information, please contact: Jardine Matheson Limited
Neil M McNamara	(852) 2843 8227
Brunswick Group Limited Karin Wong	(852) 3512 5077

28th July 2016 PT ASTRA INTERNATIONAL TBK 2016 FIRST HALF FINANCIAL STATEMENTS Highlights

• Net earnings per share down 12% at Rp176

• Car unit sales up 4% and motorcycle unit sales up 1%

• Lower volumes in heavy equipment and mining

• Significant increase in loan-loss provisions at Permata Bank

P a g e 1

PRESS RELEASE

"The first half challenges of soft commodity prices, weak heavy equipment demand, declines in mining contracting volumes and increases in non-performing loans at Permata Bank are likely to persist for the remainder of the year. Nevertheless, steady performances are expected from the consumer finance and automotive businesses."

Prijono Sugiarto President Director

Group Results

6 months ended 30th June
2016 Rp bn	2015 Rp bn	Change %
Net revenue	88,208	92,505	(5)
Net income*	7,116	8,052	(12)
Rp	Rp
Net earnings per share	176	199	(12)
As at 30th June 2016 Rp bn	As at 31st December 2015 Rp bn	Change %
Shareholders' funds**	104,251	102,043	2
Rp	Rp
Net asset value per share**	2,575	2,521	2

* 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 2016 and 2015 as well as the financial position as at 30th June 2016 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2015 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.

PRESIDENT DIRECTOR'S STATEMENT Overview

The Group experienced lower revenues within its heavy equipment and mining, and agribusiness activities, while the revenue contribution from Astra's Toyota sales operations was also reduced following the introduction of a two-tiered distribution model at the beginning of the year.

The Group's net income for the period fell, despite higher automotive profits that benefited from new model launches, as weak commodity prices adversely affected its heavy equipment, mining contracting and agribusiness operations, and a significant increase in loan-loss provisions at Permata Bank led to a lower contribution from financial services.

Performance

The Group's consolidated net revenue for the first half was down 5% at Rp88.2 trillion, while net income was 12% lower at Rp7.1 trillion.

Net asset value per share of Rp2,575 at 30th June 2016 was 2% higher than at the end of 2015.

Net cash, excluding the Group's financial services subsidiaries, was Rp2.0 trillion at 30th June 2016, compared to net cash of Rp1.0 trillion at the end of 2015. The Group's financial services subsidiaries had net debt of Rp44.2 trillion, compared to Rp44.6 trillion at the end of 2015.

Business Activities

Net income attributable to Astra International's shareholders by business segment for the period was as follows:

Net Income Attributable to Astra International
6 months ended 30th June
2016 Rp bn	2015 Rp bn	Change %
Automotive	3,864	3,422	13
Financial Services	1,253	2,085	(40)
Heavy Equipment and Mining	1,121	2,048	(45)
Agribusiness	631	354	78
Infrastructure, Logistics and Others	174	68	156
Information Technology	73	75	(3)
Attributable Net Income	7,116	8,052	(12)

Automotive

Net income from the Group's automotive businesses increased by 13% to Rp3.9 trillion. The Group's overall automotive sales improved slightly during the period largely due to new model introductions, which also had a positive effect on margins.

The wholesale market for cars increased by 1% to 532,000 units. Astra's car sales were 4% higher at 273,000 units, resulting in an increase in market share from 50% to 51%. The Group launched six new models and five revamped models during the period.

The wholesale market for motorcycles decreased by 7% to 3.0 million units. Astra Honda Motor's domestic sales were 1% higher at 2.2 million units, resulting in its market share increasing from 67% to 73%. Astra Honda Motor launched three new models and seven revamped models during the period.

Net income at Astra Otoparts, the Group's component business, was little changed at Rp152 billion with increased revenue from its OEM, after market, and export segments largely offset by higher operating costs and foreign exchange translation loss in its associated companies.

Financial Services

Net income from the Group's financial services businesses declined 40% to Rp1.3 trillion. Higher earnings at Federal International Finance and Toyota Astra Financial Services were more than offset by a decline in the contribution from the Group's other financial services businesses, particularly Permata Bank which recorded a loss following a significant increase in loan-loss provisions.

The consumer finance businesses saw a 13% increase in the aggregate amount financed, which rose to Rp35.7 trillion, including balances financed through joint bank financing without recourse. The car-focused Astra Sedaya Finance reported net income 15% lower at Rp430 billion, whereas Toyota Astra Financial Services recorded net income 8% higher at Rp155 billion. Motorcycle-focused Federal International Finance's net income was up 22% at Rp811 billion, benefiting from an improved market share and product diversification.

The aggregate amount financed through the Group's heavy equipment-focused finance operations decreased by 11% to Rp1.9 trillion. Surya Artha Nusantara Finance, which specialises in small and medium heavy equipment financing, reported net income 46% lower at Rp43 billion.

Astra's 44.6%-held joint venture, Permata Bank, reported a net loss of Rp836 billion compared with net income of Rp837 billion in the first half of 2015. The decline was due to a significant increase in loan-loss provisions as non-performing loans rose to 4.6% from 2.7% at the end of 2015. In order to strengthen its capital base, the bank completed a rights issue in June which raised Rp5.5 trillion.

The Group's general insurance company, Asuransi Astra Buana, recorded net income 17% lower at Rp407 billion, primarily due to reduced investment earnings.

During the first six months the Group's life insurance joint venture with Aviva plc, Astra Aviva Life, acquired more than 50,000 individual life customers and more than 100,000 participants for its corporate employee benefits programmes, compared with 28,500 and 186,000, respectively, in the whole of 2015.