23 March 2006 PT ASTRA INTERNATIONAL TBK 2005 FINANCIAL STATEMENTS Highlights " Underlying earnings per share up 9.9% to Rp 1,348 " Significant growth in motor vehicle and motorcycle sales " Strong performance from United Tractors and its mining contracting subsidiary, Pama " Growth in Astra Agro Lestari 9s palm oil output offset by reduction in CPO price " New financial services joint ventures c2005 has been a strong year for Astra. The Group performed above expectations across all its major lines of business, although this slowed down in the last quarter as consumer purchasing power declined in the face of escalating fuel prices and higher interest rates. Current market conditions are expected to soften Astra 9s performance in 2006.
However the Group is well financed with a strong balance sheet and its medium-term prospects remain positive. d Michael D. Ruslim President Director 23 March 2006 Group Results Year ended 31 December 2005 Rp bn 2004 Rp bn Change % Revenue 61,172 44,924 36 Operating profit 6,414 4,975 29 Underlying profit 5,457 4,966 10 Net income 5,457 5,406 1 Rp Rp Underlying earnings per share* 1,348 1,227 10 Earnings per share* 1,348 1,335 1 As at 31 December 2005 Rp bn ... more. less.
2004 Rp bn Change % Shareholders 9 funds 20,424 16,485 24 Rp Rp Net asset value per share 5,045 4,072 24 The financial results for the twelve months ended 31 December 2005 and 31 December 2004 have been prepared in accordance with accounting principles generally accepted in Indonesia. These results have been audited in accordance with the auditing standards established by the Indonesian Institute of Accountants.<br><br> PT United Tractors Tbk has been consolidated since June 2004. *The basis for calculating underlying profit and earnings per share is set out in the Note. - more - - more - Page 2 PRESIDENT DIRECTOR 9S STATEMENT Overview The Indonesian economy grew strongly during 2005, although consumer purchasing power was impacted in the last quarter of the year by escalating fuel prices and higher interest rates.<br><br> Despite the more difficult trading conditions, Astra closed the year well. Performance The Group 9s underlying profit for 2005 increased by 9.9% to Rp 5.5 trillion and underlying per earnings per share increased to Rp 1,348, with most Group businesses reporting strong growth. Net income increased by 1% to Rp 5.5 trillion from Rp 5.4 trillion in 2004.<br><br> Automotive Underlying profit from the automotive businesses rose by 10.9% to Rp 3.2 trillion, benefiting from strong consumer demand for both motor vehicles and motorcycles for most of the year. The overall market for motor vehicles grew by 10.5% to 533,917 units while Astra 9s motor vehicle sales grew by 20.1% to 258,892 units mainly due to sales of the Toyota Avanza, Toyota Innova, Daihatsu Xenia and Isuzu Panther, while its market share increased by 3.9% from last year to 48.5%. The market for motorcycles increased by 30.5% to 5.1 million units while Honda motorcycle sales grew by 30.1% to 2.6 million units maintaining its market at 52.2%.<br><br> PT Astra Honda Motor completed the construction of its third manufacturing plant in Cikarang and started full production at the end of September 2005. PT Astra Otoparts Tbk ( cAOP d) component sales rose by 31.7% to Rp 3.9 trillion benefiting from the overall growth in the automotive market. Net profit increased from Rp 223.2 billion to Rp 279.0 billion.<br><br> Non-automotive Underlying profit from the non-automotive businesses, which comprise mainly financial services, heavy equipment and agribusiness, grew by 8.5% to Rp 2.3 trillion. Profit from the financial services sector grew as motor vehicle and motorcycle financing also benefited from the improved motor vehicle and motorcycle markets. The amount financed by Federal International Finance and Astra Credit Companies for the year increased by 30.4% to Rp 23.9 trillion.<br><br> Bank Permata registered substantial loan growth in 2005, driven by the consumer and SME segments. However, the increase in interest rates, mark-to-market loss on government bonds, and investments in building capabilities resulted in a lower net profit for the Bank. Although PT Astra Agro Lestari Tbk ( cAAL d) crude palm oil ( cCPO d) sales volume was 13.4% higher, net profit from agribusiness was slightly lower at Rp 790.4 billion compared to Rp 800.8 billion as a result of a 9% decline in CPO prices.<br><br> Astra 9s heavy equipment business also made a strong contribution. A total of 2,406 units of Komatsu heavy equipment were sold, an increase of 49% on the previous year, due to strong growth in the mining sector. Mining contractor, PT Pamapersada Nusantara, also contributed to the strong results with 41% higher overburden and 20% higher coal extraction.<br><br> - more - Page 3 Group The Group 9s net asset value grew by 23.9% to Rp 20.4 trillion as at 31 December 2005 and the net asset value per share rose to Rp 5,045. The Group 9s net debt as at 31 December was Rp 8.4 trillion (2004: Rp 5.1 trillion). Excluding the Group 9s financial services businesses, the Group 9s net debt at the year end was Rp 2.7 trillion (2004: zero), representing a net debt to equity ratio of 13.4%.<br><br> The directors intend to propose a final dividend of Rp 340 per share (2004: Rp 270 per share) for approval at the Annual General Meeting on 24 May 2006, which together with the interim dividend of Rp 100 per share (2004: Rp 100 per share) paid in November 2005, will give a total dividend for the year of Rp 440 per share (2004: Rp 370 per share). Developments During the year, Astra invested a total of Rp 220 billion to increase its ownership in UT by 2.00% to 58.46%, in AOP by 1.33% to 86.72% and in AAL by 0.04% to 79.68%. The Group continues to expand its financial services activities.<br><br> Komatsu Astra Finance, a 50:50 joint venture with Komatsu, was established to finance heavy equipment in the mining sector. Astra also signed a joint venture agreement with Toyota Financial Services Corporation of Japan in October 2005. The 50:50 joint venture, Toyota Astra Financial Services, will provide finance for Toyota vehicle sales, commencing later in 2006.<br><br> In February 2006, Marubeni Corporation increased its shareholding in SAN Finance from 4.91% to 40% through a rights issue of Rp 77.0 billion. SAN Finance (now 60% owned by the Group) is involved in the heavy equipment financing business. Marubeni will be providing SAN Finance with USD funding support to meet USD financing demand in the market.<br><br> Astra together with Citigroup purchased a 53.99% interest in PT Marga Mandalasakti. Astra paid Rp 146.8 billion for a 34% shareholding. The company operates the toll road between Tangerang and Merak.<br><br> The Group continues to review opportunities in the infrastructure sector, concentrating on toll roads, power plants and water utility companies. Prospects c2005 has been a strong year for Astra. The Group performed above expectations across all its major lines of business, although this slowed down in the last quarter as consumer purchasing power declined in the face of escalating fuel prices and higher interest rates.<br><br> Current market conditions are expected to soften Astra 9s performance in 2006. However the Group is well financed with a strong balance sheet and its medium-term prospects remain positive. d Michael D. Ruslim President Director 23 March 2006 Page 4 NOTE Earnings per share Group Year ended 31 December 2005 2004 Basic earnings per share Profit attributable to shareholders (Rupiah billions) 5,457 5,406 Weighted average number of ordinary shares in issue (millions) 4,048 4,048 Basic and diluted earnings per share (Rupiah) 1,348 1,335 Underlying earnings per share Underlying profit attributable to shareholders (Rupiah billio n 5,457 4,966 Weighted average number of ordinary shares in issue (millions) 4,048 4,048 Basic and diluted earnings per share (Rupiah) 1,348 1,227 A reconciliation of net income and underlying profit is as follows: Group Year ended 31 December 2005 Rp bn 2004 Rp bn Change % Net income 5,457 5,406 1 Less: Gain on sale of investments - 324 n.m.<br><br> Adjustments arising from adoption of PSAK 38 (Revised 2004) - 116 n.m. - 440 Underlying profit 5,457 4,966 10 n.m. 3 not meaningful - end - For further information, please contact: PT Astra International Tbk Aminuddin, Corporate Secretary Tel: 62 - 21 3 6530 4956 1/<br><br>