Astra First Quarter 2010 Results

PT Astra International Tbk

First Quarter 2010 Financial Statements

The following announcement was issued today by the Company's 69%-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

GolinHarris

Kennes Young (852) 2501 7987

29th April 2010

PT ASTRA INTERNATIONAL TBK

FIRST QUARTER 2010 FINANCIAL STATEMENTS

Highlights

·; Earnings per share up 61% to Rp744

·; Improvements in all major businesses

·; Sales of motor vehicles and motorcycles up 71% and 28%, respectively

·; Stronger results from coal mining and heavy equipment business

·; Reduced palm oil volumes compensated by firmer prices

"The Group is benefiting from Indonesia's continued economic growth, and the outlook for the rest of the year is promising. Competition in the motorcycle segment remains intense, however, and potential changes in vehicle related taxes may dampen growth in the automotive sector later in the year."

Prijono Sugiarto

President Director

29th April 2010

Group Results

The financial results for the three months ended 31st March 2010 and 2009 have been prepared in accordance with accounting principles generally accepted in Indonesia. These results are unaudited.

The financial position as at 31st December 2009 has been audited in accordance with the auditing standards established by the Indonesian Institute of Certified Public Accountants

PRESIDENT DIRECTOR'S STATEMENT

Overview

The Indonesian economy continued to grow in the first quarter of 2010. Consumer demand strengthened, supported by the availability of financing at low interest rates, the strengthening of the Rupiah and a low inflation rate. These favourable economic factors led to improvements across all segments of the Group's business.

Performance

The Group's net revenue for the three months ended 31st March 2010 at Rp29.7 trillion was 38% higher than the previous year. Net income grew by 61% to Rp3 trillion. Earnings per share were also up 61% at Rp744.

Astra's net asset value of Rp43 trillion, or Rp10,620 per share, at the end of March 2010 was 8% higher than at the end of the previous year.

The Group benefited from strong operating cash flows during the quarter. At 31st March 2010, net cash excluding borrowings within financial services activities was Rp2.3 trillion, compared to net cash of Rp729 billion at the end of 2009. The net debt including the Group's financial services activities at 31st March 2010 was Rp13.3 trillion, compared to Rp13.2 trillion at the prior year end.

Business Activities

Operating income from the Group's automotive and financial services businesses, excluding associates and jointly controlled entities, was 44% higher at Rp1.3 trillion in the first quarter of 2010. The share of results from associates and jointly controlled entities was Rp1 trillion, an increase of 178% from the first quarter last year.

The wholesale market for motor vehicles grew by 74% to 174,000 units, albeit from a low base as trading conditions in the first quarter of 2009 had been difficult. Astra's motor vehicle sales grew by 71% to 99,000 units, representing a market share of 57%, a slight decline on the first quarter of the previous year. Astra launched several models during the period, including the Lexus LS 600hL, Peugeot 207 2T and Toyota Vios TRD.

The wholesale market for motorcycles grew by 35% to some 1.6 million units. Astra Honda Motor's sales improved by 28% to 750,000 units in the face of strong competition, leading to a decline in market share from 48% to 45% as competition remained strong. During the first quarter, Astra Honda Motor launched the Honda Absolute Revo and the Honda Supra X 125. 

In 2009, legislation was introduced which permits provincial governments to increase certain vehicle related taxes. The date of implementation and the extent of the increases have, however, not yet been determined.

Astra Otoparts, which is 95.7%-owned, reported a 110% increase in net income to Rp278 billion, with improvements across most of its activities. 

The contribution from Astra's consumer finance operations improved following the recent growth in their loan books. In the first quarter of 2010, the amount directly financed by Federal International Finance and Astra Credit Companies was 50% higher at Rp8.4 trillion. The net profit of 45%-held associate, Bank Permata, was Rp269 billion, 62% up on the first quarter of 2009 as it benefited from higher operating and non-operating income.

Natural Resources and Other

The operating income from the Group's natural resources and other businesses, comprising agribusiness, heavy equipment, mining, information technology and infrastructure increased by 13% to Rp1.9 trillion.

The Group's 80%-held Astra Agro Lestari reported a 25% increase in net income to Rp272 billion due to improvements in crude palm oil prices achieved, which were on average 19% higher than in the first quarter of the previous year. Palm oil production was, however, 3% lower at 219,000 tonnes.

United Tractors, which is 60%-owned, produced a net income of Rp907 billion, an increase of 12%. Komatsu heavy equipment sales recovered and were 94% higher at 1,200 units. Mining contracting subsidiary, Pamapersada Nusantara also did well with a 27% increase in coal extracted to 19 million tonnes while overburden removed rose by 27% to 154 million bcm. Sales from its own mines amounted to just over 744,000 tonnes.

77%-owned Astra Graphia, which is involved in information technology solutions and is the sole distributor of Fuji Xerox equipment in Indonesia, produced a 52% increase in net income as a result of improving margin in the outright sales segment and service maintenance and lower interest expense.

The Group's infrastructure investments performed satisfactorily. The 30%-held PAM Lyonnaise Jaya, which operates the western Jakarta water utility system, increased its sales volume by 8% to 36 million cubic metres. The toll road operated by 79%-owned Marga Mandalasakti, reported higher traffic volume of 7 million vehicles during the period or 9% higher than the first quarter of 2009.

Prospects

The Group is benefiting from Indonesia's continued economic growth, and the outlook for the rest of the year is promising. Competition in the motorcycle segment remains intense, however, and potential changes in vehicle related taxes may dampen growth in the automotive sector later in the year.

Prijono Sugiarto

President Director

29th April 2010

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For further information, please contact:

PT Astra International Tbk

Tel: + 62 - 21 - 6530 4956