27^th February 2024
PT ASTRA INTERNATIONAL TBK ("the Company" or "Astra") 2023 FULL YEAR FINANCIAL STATEMENTS

Highlights

• Record earnings boosted by economic recovery, with strong performance across most businesses
• Motorcycle sales grew by 22%, with an increase in market share, while car market share increased in a soft market
• Net earnings per share up 12% at Rp840 (excluding fair value adjustments)
• Enhanced final dividend of Rp421 per share will be proposed on the basis of record results and elevated coal prices in the first half of 2023
• The Group’s capex and investment for 2023 increased to Rp45.9 trillion

"The Group achieved record earnings in 2023 on the back of a strong recovery in motorcycle sales and growth in the consumer finance businesses. The Group continued to demonstrate resilience through its diversified portfolio, despite lower commodity prices and softening economic conditions in the second half of the year. While these conditions remain, we anticipate a cyclical dip in growth in 2024. However, we are confident that the Group is well- positioned to achieve long-term growth through the strengthening of our core businesses, as well as new investments to support our strategic priorities.

I would like to thank our stakeholders for their ongoing support and trust, in particular the Group’s employees, whose unwavering commitment and dedication have made all our achievements possible.”

Djony Bunarto Tjondro
President Director

Astra group (“Group”) Results

* Profit attributable to owners of the parent

The financial results for the years ended 31st December 2023 and 2022 and the financial position as at 31st December 2023 and 2022 have 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

Performance

The Group’s consolidated net revenue for 2023 was Rp316.6 trillion, an increase of 5% compared with the previous year. The Group’s net income, excluding fair value adjustments on investments in GoTo and Hermina, was Rp34.0 trillion, a record result which was 12% higher than the same period last year. Including these fair value adjustments, the Group’s net income increased by 17% to Rp33.8 trillion. This earnings growth reflects improved performances from most of the Group’s business divisions, especially the automotive and financial services divisions.

Net asset value per share at 31st December 2023 was Rp4,907, 3% higher than at 31st December 2022.

Net cash, excluding the Group's financial services subsidiaries, at 31st December 2023 was Rp29 billion, compared to Rp35.1 trillion at 31st December 2022. In addition to the enhanced dividend distributed in April 2023, the Group’s consolidated capital expenditure and investment for 2023 doubled to Rp45.9 trillion, mainly attributable to United Tractors’ investments in nickel and renewable energy as part its transition plan. United Tractors also incurred higher capital expenditure for replacements of heavy equipment post-pandemic to accommodate increased business activity. Net debt within the Group's financial services subsidiaries grew to Rp52.2 trillion at 31st December 2023, from Rp44.5 trillion at the end of 2022, in line with the growth in motorcycle lending.

An enhanced final dividend of Rp421 per share (2022: Rp552 per share) will be proposed at the Annual General Meeting of Shareholders of the Company to be held in April 2024. The proposed final dividend, together with the interim dividend of Rp98 per share (2022: Rp88 per share) distributed in October 2023, will bring the proposed total dividend for 2023 to Rp519 per share (2022: Rp640 per share), representing a dividend payout ratio of 62% (based on the Group’s net income of Rp34.0 trillion, excluding the fair value adjustments on investments in GoTo and Hermina). This ratio is higher compared to the historical average dividend payout ratio of the Company.

The Board of Directors’ proposal of the enhanced final dividend is based on the record results and elevated coal prices in the first half of 2023, reflecting the continued strong recovery post- pandemic, which enables the Company to return some excess capital to shareholders. The Company remains confident in its long-term growth potential and balance sheet capacity to continue investing capital in support of its strategic priorities.

Business Activities

The Group’s net income by division in 2023, compared with the previous year, is set out in the table below:

* Profit attributable to owners of the parent

Automotive

Net income from the Group's automotive division increased by 18% to Rp11.4 trillion, reflecting higher sales in the motorcycle and components businesses.

• The wholesale car market decreased by 4% to 1.0 million units in 2023 (source: Gaikindo). Astra's car sales in 2023 were 2% lower at 561,000 units, while market share increased from 55% to 56%. Sixteen new and eleven revamped models were launched during the year.
• The Group launched the Lexus RZ, a battery electric model (“BEV”), and the Toyota Yaris Cross and Toyota Alphard, two hybrid electric models (“HEV”). The Group now sells six BEV models and thirteen HEV models in Indonesia, under Toyota, Lexus and BMW brands.
• The wholesale motorcycle market grew 19% to 6.2 million units in 2023 (source: Ministry of Industry). Astra Honda Motor's sales increased by 22% to 4.9 million units in 2023, and its market share increased from 77% to 78%. Three new and thirteen revamped models were launched during the year, including a BEV model, the EM1e.
• The Group’s 80%-owned components business, Astra Otoparts, reported a 39% increase in net income to Rp1.8 trillion in 2023, mainly due to higher sales volumes and improved operating margin.

Financial Services

Net income from the Group’s financial services division increased by 30% to Rp7.9 trillion in 2023, primarily due to higher contributions from its consumer finance businesses.

• The Group’s consumer finance businesses saw a 15% increase in new amounts financed to Rp117.3 trillion. Supported by larger loan portfolios and lower loan loss provisions, the net income contribution from the Group’s car-focused finance companies increased by 24% to Rp2.3 trillion, and the net income contribution from the Group’s motorcycle-focused finance company, Federal International Finance, increased by 29% to Rp4.1 trillion.
• The Group's heavy equipment-focused finance businesses saw an 8% increase in new amounts financed to Rp10.7 trillion. The net income contribution from these businesses increased significantly by 75% to Rp178 billion, mainly due to a larger loan portfolio.
• General insurance company Asuransi Astra Buana reported a 14% increase in net income to Rp1.4 trillion, mainly due to higher underwriting income and investment income. The Group's life insurance company, Asuransi Jiwa Astra, recorded a 2% increase in gross written premiums to Rp6.1 trillion.

Heavy Equipment, Mining, Construction and Energy

Net income from the Group’s heavy equipment, mining, construction and energy division was stable at Rp12.7 trillion, with improved performance from construction machinery and mining contracting offsetting lower contributions from its coal and gold mining businesses.

• 59.5%-owned United Tractors reported a 2% decrease in net income to Rp20.6 trillion.
• Komatsu heavy equipment sales decreased by 8% to 5,300 units, while revenues from its parts and service businesses were higher.
• Mining services contractor Pamapersada Nusantara recorded 21% higher overburden removal volume at 1.2 billion bank cubic metres, and coal production for its customers increased by 11% to 129 million tonnes.
• United Tractors’ coal mining subsidiaries recorded 19% higher coal sales volume at
• 11.8 million tonnes (including 2.5 million tonnes of metallurgical coal), but revenue declined due to lower coal prices.
• Agincourt Resources, 95%-owned by United Tractors, reported a 39% decrease in gold sales to 175,000 oz.
• General contractor Acset Indonusa, 87.7%-owned by United Tractors, reported a lower net loss of Rp270 billion, compared with a net loss of Rp449 billion in the previous year.

Agribusiness

Net income from the Group’s agribusiness division decreased by 39% to Rp841 billion, largely due to lower crude palm oil (“CPO”) selling prices, partly offset by higher sales.

• 79.7%-owned Astra Agro Lestari reported a 39% decrease in net income to Rp1.1 trillion.
• CPO and derivative product sales increased by 13% to 1.7 million tonnes.
• CPO prices were 14% lower at Rp11,142/kg.

Infrastructure and Logistics

The Group’s infrastructure and logistics division reported an 85% increase in net income to Rp973 billion, due to improved performance in its toll road, transportation solutions and logistics businesses.

• The Group has interests in 396km of operational toll roads along the Trans-Java network and in the Jakarta Outer Ring Road. The Group’s toll road concessions saw 7% higher daily toll revenue during the year.
• Serasi Autoraya’s net income increased by 26% to Rp213 billion, mainly due to higher contributions from its transportation solutions and logistics services businesses, with vehicles under contract relatively stable at 25,800 units, which more than offset a lower contribution from its used car business.

Information Technology

The Group’s information technology division, represented by 76.9%-owned Astra Graphia, reported a 45% increase in net income to Rp109 billion, primarily due to improved operating margin.

Property

The Group’s property division saw a 10% increase in net income to Rp142 billion, mainly due to an improvement in occupancy at Menara Astra.

Corporate Actions

Over the past year, the Group continued to invest capital to strengthen its core portfolio and for business diversification:

Automotive

• Acquisition of Tokobagus (OLX), a company operating a leading classifieds platform in Indonesia. This acquisition is expected to strengthen the Group’s digital ecosystem.

Heavy Equipment, Mining, Construction and Energy

• Acquisition of 70% stakes in Stargate Pasific Resources (“SPR”), a nickel mining company, and Stargate Mineral Asia (“SMA”), a nickel processing company, for Rp3.2 trillion. In addition, acquisition of a 66.7% stake in Anugerah Surya Pacific Resources, which owns 30% in each of SPR and SMA, for Rp1.6 trillion.
• Acquisition of 19.99% stake in Nickel Industries Limited (“NIC”) for AUD942.7 million. While listed on the Australian Securities Exchange, NIC is an integrated nickel mining and processing company with major assets located in Indonesia.
• Acquisition of 49.6% stake in Supreme Energy Sriwijaya (“SES”) for USD51.9 million. SES is a 25.2% shareholder of Supreme Energy Rantau Dedap, which owns an operating geothermal project in South Sumatera with an existing capacity of 2 x 49 MW.

Others

• Additional investment of USD100 million in Halodoc, a leading digital health ecosystem platform in Indonesia. The Group’s cumulative investment increased to USD135 million for a total shareholding of 21.04%.
• Acquisition of 96.92% stake in Bhumi Prama Arjasa (“BPA”) for USD85 million. BPA owns the Mandarin Oriental Hotel (Jakarta) and the prime 1-hectare land where it is located.
• A joint venture with Equinix, Inc., one of the world’s largest digital infrastructure companies, to develop data centres in Indonesia, where the Group has a 25% shareholding.

Prospects

The Group achieved record earnings in 2023 on the back of a strong recovery in motorcycle sales and growth in the consumer finance businesses. The Group continued to demonstrate resilience through its diversified portfolio, despite lower commodity prices and softening economic conditions in the second half of the year. While these conditions remain, we anticipate a cyclical dip in growth in 2024. However, we are confident that the Group is well- positioned to achieve long-term growth through the strengthening of our core businesses, as well as new investments to support our strategic priorities.

Djony Bunarto Tjondro
President Director