PT ASTRA INTERNATIONAL TBK 2005 FINANCIAL STATEMENTS by nyl11041

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									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’s palm oil output offset by reduction in CPO price
• New financial services joint ventures

“2005 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’s performance in 2006. However the Group is well
financed with a strong balance sheet and its medium-term prospects remain positive.”

Michael D. Ruslim
President Director
23 March 2006

Group Results
                                                                             Year ended 31 December
                                                                              2005           2004   Change
                                                                             Rp bn          Rp bn       %
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           2004       Change
                                                                             Rp bn          Rp bn           %
Shareholders’ 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.
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.


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PRESIDENT DIRECTOR’S 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. Despite the more difficult
trading conditions, Astra closed the year well.

Performance

The Group’s 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.

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’s 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%. 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 (“AOP”) 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.

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. 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 (“AAL”) crude palm oil (“CPO”) 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.

Astra’s 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.




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Group

The Group’s 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’s net debt as at 31 December was Rp 8.4 trillion (2004: Rp 5.1 trillion). Excluding the Group’s
financial services businesses, the Group’s net debt at the year end was Rp 2.7 trillion (2004: zero),
representing a net debt to equity ratio of 13.4%.

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. 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.

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.

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.
The Group continues to review opportunities in the infrastructure sector, concentrating on toll roads,
power plants and water utility companies.

Prospects

“2005 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’s performance in 2006. However the Group is well
financed with a strong balance sheet and its medium-term prospects remain positive.”


Michael D. Ruslim
President Director
23 March 2006




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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                        4,048           4,048
 in issue (millions)
Basic and diluted earnings per share (Rupiah)                     1,348           1,335

Underlying earnings per share
Underlying profit attributable to shareholders (Rupiah billion 5,457              4,966
Weighted average number of ordinary shares                     4,048              4,048
 in issue (millions)
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           2004                   Change
                                               Rp bn          Rp bn                      %


Net income                                     5,457              5,406                     1
Less:
Gain on sale of investments                    -                  324                     n.m.
Adjustments arising from adoption of
PSAK 38 (Revised 2004)                         -                  116                     n.m.
                                               -                  440
Underlying profit                              5,457              4,966                    10



n.m. – not meaningful


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For further information, please contact:
PT Astra International Tbk
Aminuddin, Corporate Secretary
Tel: 62 - 21 – 6530 4956




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