astra 2011-02-24 - fy10 results release

7/31/2019 Astra 2011-02-24 - FY10 Results Release

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24th February 2011

PT ASTRA INTERNATIONAL TBK2010 FULL YEAR FINANCIAL STATEMENTSHighlights

Net earnings per share up 43% to Rp3,549 Net asset value per share up 24% to Rp12,180

A 43% increase in full year dividend proposed

Strong performances from automotive, heavy equipment and financial services

Our businesses performed well in 2010 to produce an excellent set of results, enabling Astra toreport record earnings and net assets per share. While the outlook remains encouraging, therate of earnings growth is expected to moderate in 2011.

Prijono SugiartoPresident Director24th February 2011

Group ResultsYear ended 31st December

2010Rp bn

2009Rp bn

Change%

Net revenue 129,991 98,526 32Operating income 14,725 12,756 15Share of results of associates and jointly

controlled entities4,896 2,567 91

Net income 14,366 10,040 43Rp Rp

Net earnings per share 3,549 2,480 43

As at 31stDecember 2010Rp bn

As at 31stDecember 2009Rp bn

Change%

Shareholders' funds 49,310 39,894 24Rp Rp

Net asset value per share 12,180 9,854 24

The financial results for the years ended 31st December 2010 and 2009 have been prepared in accordance withaccounting principles generally accepted in Indonesia and been audited in accordance with the auditing standardsestablished by the Indonesian Institute of Certified Public Accountants.


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PRESIDENT DIRECTOR'S STATEMENT

Overview

The Indonesian economy grew by 6.1% in 2010, supported by a continuation of robustconsumer demand, net foreign investment inflows and the availability of consumer finance atattractive interest rates. Strong earnings growth from the Groups Automotive, FinancialServices and Heavy Equipment activities enabled Astra to achieve a record profit for the year.

Performance

The Group's net income for the year ended 31st December 2010 grew by 43% to Rp14.4 trillion.Earnings per share were also up 43% at Rp3,549. Net revenue increased by 32% to Rp130.0trillion. Astras net asset value of Rp49.3 trillion, or Rp12,180 per share, at 31 December 2010was 24% higher than at the end of 2009.

The Group has continued to benefit from strong operating cash flows. Overall net debt excluding

borrowings within the Groups financial services subsidiaries was Rp3.5 trillion, compared to netcash of Rp729 billion at the end of 2009, due to significant business expansion. The Groupsfinancial services subsidiaries had net debt at 31st December 2010 of Rp21.1 trillion, comparedto Rp13.9 trillion at the prior year end, due to an increase in the volume financed.

A final dividend of Rp1,130 per share (2009: Rp830 per share) will be proposed at the AnnualGeneral Meeting to be held in May 2011. The proposed final dividend together with the interimdividend of Rp470 per share (2009: Rp290 per share) will bring the total dividend for the year toRp1,600 (2009: Rp1,120), a 43% increase.

Business Activities

Automotive

The contribution to net income from the Groups automotive businesses grew by 55% to Rp7.1trillion.

The wholesale market for motor vehicles grew by 57% during the year to 765,000 units. Astrasmotor vehicle sales grew by 52% to 426,000 units, representing a market share of 56%compared with 58% in 2009. Astra launched several facelift models during the fourth quarter,including Toyota New Rush, Daihatsu New Terios and the New MPV Peugeot 5008.

The wholesale market for motorcycles grew by 26% to 7.4 million units during 2010. AstraHonda Motor maintained its market leading position with sales improving by 26% to 3.4 million

units, a market share of 46%. During the fourth quarter, the company launched the New HondaCS1 and New Honda Blade.

Astra Otoparts, the Groups component manufacturing business, benefited from the expansionin the wholesale automotive market and reported a net income up 49% at Rp1.1 trillion.

Financial Services

Net income from the Groups financial services businesses grew by 77% to Rp2.9 trillion.

An improved contribution from Astras consumer finance operations reflected loan book growth,stable net interest margins and ample liquidity in the local banking sector. The amount financedthrough Federal International Finance, Astra Credit Companies and Toyota Astra FinancialServices in 2010 grew by 39% to Rp 44 trillion, excluding balances financed through joint bank


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financing without recourse. In December 2010 the transaction to acquire the 47% of AstraSedaya Finance, the largest of the Astra Credit Companies, that Astra did not already own wascompleted.

Group insurance company, Asuransi Astra Buana, generated higher earnings from retail andcommercial premiums and investment income.

Astras 44.5%-held joint venture, PT Bank Permata Tbk, benefited from the positive economicconditions and reported net income of Rp997 billion for the year ended 31st December 2010, anincrease of 108%. During November 2010, Permata completed a Rp2 trillion, 6:1 rights issue,raising funds to strengthen capital adequacy. In December 2010, the acquisition of GE FinanceIndonesia, a domestic credit card issuer, was completed following the formal approval by BankIndonesia.

Heavy Equipment and Mining

The Groups net income from its heavy equipment and mining business grew by 2% to Rp2.3

trillion.

United Tractors, which is 59.5%-owned, reported net income of Rp3.9 trillion for the year ended31st December 2010, little changed from 2009. Strong results were seen in its Komatsu heavyequipment business, which sold 5,400 units during the year, an increase of 74%. This earningsimprovement was, however, offset by a reduced contribution from the contract coal miningoperations of subsidiary, Pamapersada Nusantara (Pama). While Pama achieved higherproduction targets, with an increase in contract coal production of 14% to 78 million tonnes andan increase in contract overburden removal of 9% to 651 million bcm, it continued to be affectedby unfavourable weather conditions and a weak US dollar. Through its own mines, Pama sold2.6 million tonnes of coal.

Agribusiness

The contribution to the Groups net income from agribusiness increased by 21% to Rp1.6 trillion.

Astra Agro Lestari, which is 79.7%-held, reported a net income of Rp2.0 trillion for the yearended 31st December 2010, an increase of 21% over 2009 due to improved crude palm oilprices achieved, which were on average 13% higher than previous year. Palm oil productionduring 2010 was up 3% compared to the corresponding period in 2009, at 1.1 million tonnes.

Infrastructure and Logistics

Net income from infrastructure and logistics grew by 34% to Rp358 billion.

In December 2010, Astra acquired an additional 19% of PAM Lyonnaise Jaya, which operatesthe western Jakarta water utility system, increasing its stake from 30% to 49%. PAM LyonnaiseJaya increased its sales volume in 2010 by 7% to 147.3 million cubic metres.

The toll road operated by 79.3%-owned Marga Mandalasakti, reported a 7% increase in trafficvolume to 29.4 million vehicles on higher average tariffs, while Serasi Autoraya improved profitwas supported by higher sales of rental vehicles.


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Information Technology

Net income from information technology grew by 76% to Rp90 billion.

Astra Graphia, 76.9%-owned, which is active in the area of information technology solutions andis the sole distributor of Fuji Xerox equipment in Indonesia, reported net income of Rp118 billion,up 77%.

People

On behalf of the Board of Directors, I wish to thank our 145,200 staff employed across theGroup. The Groups excellent results are due in large measure to their hard work anddedication. I also wish to thank our customers, shareholders and business partners for theircontinued support.

Prospects

Our businesses performed well in 2010 to produce an excellent set of results, enabling Astra toreport record earnings and net assets per share. While the outlook remains encouraging, therate of earnings growth is expected to moderate in 2011.

Prijono SugiartoPresident Director24th February 2011

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For further information, please contact:

PT Astra International TbkArief Istanto, Chief of Corporate CommunicationTel: + 62 21 6530 4956

astra 2011-02-24 - fy10 results release

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