Financial Overview

(in billion IDR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	10,702.0	8,277.5	29.3	-Overall automotive sales growth, both in four-wheelers and two-wheelers. -The increase in production capacity by building new plants and the expansion of product portfolio by acquiring existing component companies resulted in the increase of revenue.
Net income	1,006.3	1,053.2	(4.5)	-

Acquisitions

-In April 2013, the Company has acquired 51% of PT Pakoakuina shares by purchasing partial shares belonging to minority shareholders and taking over all new shares issued by PT Pakoakuina amounting IDR 700 billion (approximately USD 71.4 million). Thus, the new composition of PT Pakoakuina's share ownership is 51% owned by PT Astra Otoparts, 46.75% by Trikirana Investindo Prima, and 2.25% by Hadi Kasim. In association with Pakoakuina group, the Company has new automotive component business, that is wheel rim product for both two and four wheeler, produced in Sunter factory on 3.8 hectares of land and Karawang on 14.5 hectares with production capacity 7.4 million units per year.

Joint Ventures

-In September 2013, the Company and Metalart Corporation had signed JV Agreement to form a joint venture company to manufacture forging parts serving car makers, i.e. crankshaft, gears, and connecting-rod. The new factory located on area of 3.2 hectare in Karawang International Industrial City (KIIC), in West Java, Indonesia. The accord entails the creation of a joint venture in which Metalart will hold the majority position with 70% of the capital and Astra Otoparts will hold the remaining 30%. The joint venture, which will be called PT Metalart Astra Indonesia, will invest a total of USD 45.3 million. The new factory is expected to start mass production in July 2014 with an estimated production of around 60,000 units in 2014 and could reach 8.7 million units in 2017.

Contracts

-In September 2013, PT Akebono Brake Astra Indonesia has exported 1,800 units of caliper assemblies to Nissan Motor Manufacturing (UK) Ltd. It also plans to export products for Renault automobile assembly plant in France.

R&D Facilities

-The Company conducts R&D activities mainly in Engineering Development Center Division established in 2010. More than 100 engineers engage in the R&D activities.

Technology Licensing-in Agreement

-PT Kayaba Indonesia signed an agreement to license in technology from KYB, its joint-venture partner, for automotive shock absorbers, and motorcycle front forks and oil cushion units. The agreement, which covers industrial property rights; manufacturing and sales rights; and technological knowledge, information and expertise, is from February 1, 2010 to January 31, 2014.

-PT Federal Nittan Industries renewed the technical-license agreement it formed with its joint-venture partner Nittan Valve. The licensing agreement, which covers compact engine valves, is for a five-year period starting June 1, 2010. The Company is paying Nittan Value licensing fees for some of the technical rights.

Product Development

-In 2013, the Nusametal Division developed new products within aluminum die casting component series, which are valve rocker cover assembly, gear shift cylinder cover, retainer, torque rod bracket and transmission.

Investment in Indonesia

-In December 2013, TD Automotive Compressor Indonesia (TACI), a joint venture between the Company, Toyota Industries Corporation, Denso Corporation, and Toyota Tsusho Indonesia, started to build their own factory. Since 2011 TACI has been producing compressors in the Denso Indonesia's plant, and gradually will move its activities to their factory until 2018. The plant which will be built on 10 ha land area is planned to start operating in October 2014 and targeted to produce 3.5 million units compressor in 2015, where, previously, it produced approximately 1.75 million units. In this new factory, TACI invests JPY 6.5 billion investment or approximately IDR 747 billion and targeted to recruit approximately 500 new workers. It is expected that if TACI's compressor business develops well, TACI will supply compressor not only for domestic and ASEAN markets but also European and American markets.

-In July 2013, the Company and Toyoda Gosei Co., Ltd. announced plans to increase production capacity of their Indonesian joint venture PT. Toyoda Gosei Safety Systems Indonesia (TGSSI), i.e. the steering wheel products 1.5 times in 2016 from the current capacity to be 800,000 units/year, while airbag products to be 1.5 million units/year in 2016, or about five times from the current capacity. The additional investment will be IDR 80 billion (approximately JPY 800 million) through the construction of a new plant at the site adjacent to the current location, which is targeted to absorb 130 new employees.

-Other major capacity expansion in FY ended Dec. 31, 2013

Month	Company name	Partner	Contents	Products: Capacity
End of December 2013	PT Astra Juoku Indonesia	Juoku Technology (Taiwan)	-Conducted inauguration of the new factory in Cibitung.	-Lamp components: 3.5 million units
November 2013	PT Velasto Indonesia	-	-Conducted ground breaking of first factory in Purwakarta. Start of operation in 2015.	-Torque rod ASSY: 150,000 units -Metal bonding rubber components: 468,000 units -Rubber hoses: 5.8 million units
November 2013	PT Inti Ganda Perdana	-	-Started operation in new factory in Karawang.	-Rear axles, Propeller shafts
October 2013	PT Century Batteries Indonesia	-	-Finished the second stage building of factory in Mitra Karawang.	-Battery: 1 million units
August 2013	PT Autoplastik Indonesia	-	-Started operation in new factory in Mitra Karawang.	-Plastic injection components: 16.9 million units
January 2013	PT GS Battery Indonesia	GS Yuasa, Toyota Tsusho	-Conducted ground breaking of the third factory in Semarang. Start of operation in 2014.	-Battery: 5.0 million units