Jardine Strategic : PT Astra International Tbk - 2017 Third Quarter Financial Statements

To: Business Editor 31st October 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 26% at Rp350

• Increased market share for both cars and motorcycles

• Positive contribution from Permata Bank

• Heavy equipment and mining contracting volumes benefit from strong coal prices

• Agribusiness improved with higher crude palm oil prices and sales volume

"The outlook for the rest of the year is expected to remain positive as the results will continue to benefit from the increased commodity prices, although there are concerns over greater competition in the car market as well as increased provisioning in certain of the Group's financing activities."

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 nine months ended 30th September 2017 and 2016 as well as the financial position as at 30th September 2017 have been prepared in accordance with Indonesian Financial Accounting Standards and are unaudited. The financial position as at 31st December 2016 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.

- more -

The Group's automotive businesses achieved improved market shares for both cars and motorcycles during the period under review, but experienced discounting pressure in an increasingly competitive car market. The results from the Group's financial services businesses improved with a return to profit by Permata Bank, while increased commodity prices led to strong performances from heavy equipment and mining, as well as its agribusiness activities.

The Group's consolidated net revenue for the period increased by 14% to Rp150.2 trillion, with higher revenues achieved in most of its business segments.

The Group's net income was higher at Rp14.2 trillion, an increase of 26% over the comparable period last year.

The net asset value per share was Rp2,946 at 30th September 2017, 7% higher than at the end of 2016.

Net cash, excluding the Group's financial services subsidiaries, was Rp1.2 trillion at the end of September 2017. This was significantly lower compared with net cash of Rp6.2 trillion at the end of 2016 mainly due to investments in toll roads, power plants and property during the period. The Group's financial services subsidiaries had net debt of Rp46.9 trillion, compared with Rp47.7 trillion at the end of 2016.

Net income attributable to shareholders by business segment was as follows:

Automotive

Net income from the Group's automotive division increased by 10% to Rp6.6 trillion, primarily due to higher car and motorcycle sales, although there was increasing discounting pressure in the car market.

The wholesale market for cars rose by 3% to 804,000 units. Astra's car sales were 5% higher at 444,000 units, resulting in its market share improving from 54% to 55%. The Group launched nine new models and ten revamped models during the period.

The wholesale market for motorcycles was flat at 4.3 million units. Astra Honda Motor's domestic sales were, however, 2% higher at 3.2 million units, resulting in its market share improving from 73% to 75%. The Group launched seven new models and fourteen revamped models during the period.

Net income of Astra Otoparts, the Group's component business, increased 30% to Rp370 billion, reflecting higher earnings contributions from its joint venture and associate companies driven by increased sales volumes.

Financial Services

Net income from the Group's financial services division increased 42% to Rp2.9 trillion, largely due to a return to profit at Permata Bank.

The Group's consumer finance businesses saw a 6% increase in the aggregate amount financed, including amounts financed through joint bank financing without recourse, to Rp56.7 trillion. Car-focused Astra Sedaya Finance reported a 9% increase in net income at Rp711 billion. Toyota Astra Financial Services recorded a 33% decrease in net income to Rp169 billion following increased loan loss provisions. Motorcycle-focused Federal International Finance's net income was 14% higher at Rp1.5 trillion, as it benefited from Honda's improved market share as well as loan product diversification.

The aggregate amount financed through the Group's heavy equipment-focused finance operations increased by 56% to Rp5.2 trillion. Net income at Surya Artha Nusantara Finance, which specialises in small and medium size heavy equipment financing, was 40% lower at Rp36 billion, mainly due to larger loan loss provisions.

Permata Bank, in which Astra's holds a 44.6% interest, reported a net income of Rp708 billion for the period, compared with a net loss of Rp1.2 trillion in 2016. The Bank's gross non-performing loan ratio improved from 8.8% at the end of 2016 to 4.7% at 30th September 2017, while its net non-performing loan ratio improved from 2.2% to 1.8%. Permata Bank's return to profitability was mainly driven by an improvement in asset quality and the previously announced sale of a portfolio of its non-performing loans.

Asuransi Astra Buana, the Group's general insurance company achieved higher investment income and reported net income up 7% at Rp749 billion.