Jardine Matheson : PT Astra International Tbk 2016 Full Year Financial Statements

To: Business Editor 27th February 2017

For immediate release

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.

PRESS RELEASE

• Net earnings per share up 5% at Rp374

• Increased market shares for cars and motorcycles

• Heavy equipment and mining result up due to non-recurrence of impairment charge

• Agribusiness benefited from improved prices

• Significant increase in loan-loss provisions by Permata Bank

"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

* 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.

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During 2016 the Group's automotive businesses performed well, achieving good growth in market share for both cars and motorcycles. The trading performance of heavy equipment and mining was adversely impacted by low coal prices for most of the year, however the situation improved in the final quarter. Agribusiness benefited from an improvement in crude palm oil prices, although the impact of poor weather conditions limited production and sales in the first half. While most of the Group's financial services businesses performed well, Permata Bank recorded a significant increase in loan loss provisions leading to a Rp3.0 trillion reduction in its contribution.

The Group's consolidated net revenue in 2016 was down 2% at Rp181.1 trillion, with lower revenue within heavy equipment and mining coupled with a reduced revenue contribution from Astra's Toyota sales operations following the introduction of a two-tiered distribution model at the beginning of the year.

The Group's net income for the year was 5% higher at Rp15.2 trillion, with improved results in automotive, heavy equipment and mining, agribusiness, and infrastructure and logistics being partially offset by lower contributions from financial services, information technology and property.

The net asset value per share of Rp2,765 at 31st 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 the end of 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.

A final dividend of Rp113 per share (2015: Rp113 per share) will be proposed at the Annual General Meeting to be held in April 2017. The proposed final dividend together with the interim dividend of Rp55 per share (2015: Rp64 per share) will bring the total dividend for the year to Rp168 per share (2015: Rp177 per share), representing a dividend payout ratio of 45% (2015: 50%, or 45% excluding the profit impact of the impairment charge).

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

Automotive

Net income from the Group's automotive businesses increased by 23% to Rp9.2 trillion, largely due to successful new model introductions and their positive effect on margins.

The wholesale market for cars increased by 5% to 1.1 million units. Astra's car sales were 16% higher at 591,000 units, resulting in an increase in market share from 50% to 56%. The Group launched 14 new models and nine revamped models during the year.

The wholesale market for motorcycles decreased by 8% to 5.9 million units. Astra Honda Motor's domestic sales were 2% lower at 4.4 million units, although its market share increased from 69% to 74%, supported by the launch of seven new models and eight revamped models in 2016.

Net income at Astra Otoparts, the Group's component business, increased 31% to Rp418 billion, with higher revenues from its OEM and aftermarket segments combined with higher earnings contributions from its associated companies.

Financial Services

Net income from the Group's financial services businesses in 2016 declined 78% to Rp789 billion. Improved contributions from Federal International Finance, Toyota Astra Financial Services and Asuransi Astra Buana, were more than offset by declines in the Group's other financial services businesses, mainly Permata Bank which recorded a significant increase in loan-loss provisions primarily in its commercial loan book.