PT. Astra Otoparts Tbk Business Report FY ended Dec. 2014

Financial Overview

(in billion IDR)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	12,255.4	10,702.0	14.5	-Overall automotive sales growth, both in four-wheelers and two-wheelers. -The increase results of acquisitions in 2013 which was fully contributed to the increased sales in OEM market segment. -Increasing production capacity and expanding the distribution coverage resulted in the increase of revenue.
Net income	871.7	948.0	(8.0)	-Rising prices of raw materials which were triggered by fluctuation in exchange rate of Rupiah against the US dollar and a highly increase in labor costs are the major factors of decrease.

Recent Development in Indonesia

Date	Company name	Location	Main business / Products	Contents
Dec., 2014	PT GS Battery	Central Java, Bumi Semarang Baru Industrial Estate	Battery for 4 wheelers and 2 wheelers	Opening ceremony of the 3rd factory
Nov., 2014	PT TD Automotive Compressor Indonesia	Bekasi Mitra Industrial Estate	-	Started operation in new plant.
Oct., 2014	PT MetalArt Astra Indonesia	West Java, Karawang Industrial Estate (KIIC)	Forged parts for 4 wheelers	Opening ceremony
May, 2014	PT Topy Palingda Manufacturing Indonesia	Karawang	-	Started operation.
Mar., 2014	PT Denso Indonesia	Bekasi	-	Started operation in the 3rd factory.
Jan., 2014	-PT Aisin Indonesia Automotive -PT Advics Manufacturing Indonesia	Karawang	-Engine/Body parts for 4 wheelers -Brake system	Groundbreaking ceremony
Jan., 2014	PT Astra Juoku Indonesia	Karawang	-	Started operation.

Awards

-Major awards for FY ended Dec., 2014

Award presented by	Name of award	Award winner
Suzuki Indomobil Motor	The Best Vendor Performance 2013	-PT Astra Nippon Gasket Indonesia -PT Federal Nittan Industries -PT Pakoakuina
Suzuki Indomobil Motor	Certification of Appreciation in Recognition for Outstanding Support and Thoroughly Cooperation in Suzuki Business in 2013	-PT Akebono Brake Astra Indonesia
Hino Motor Manufacturing Indonesia	Appreciation of Quality Performance Award 2013	-PT Astra Nippon Gasket Indonesia -PT Menara Terus Makmur
Hino Motor Manufacturing Indonesia	Best Contribution Achievement in Recognition for The Outstanding Performance and Support to HMMI	-PT Astra Otoparts Adiwira Plastik Division -PT GS Battery
Toyota Motor Manufacturing Indonesia	The Best Safety Supplier	-PT Kayaba Indonesia
	In Recognition of the Top 10 Outstanding Cost Performance in 2013	-PT Astra Nippon Gasket Indonesia
	Quality Award in Year 2013	-PT Pakaokuina
Krama Yudha Tiga Berlian Motors (Mitsubishi)	Zero Delay Delivery Achievement	-PT Toyoda Gosei Safety Systems Indonesia -PT Astra Otoparts Nusametal Division
	Zero PPM Quality Achievement	-PT Toyoda Gosei Safety Systems Indonesia
	Best Quality Supplier in recognition of the Excellent Contribution in 2013	-PT GS Battery

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. Indokarlo Perkasa, a subsidiary of PT. Astra Otoparts Tbk, has signed a technical collaboration agreement with Saitama Kiki Co. Ltd., Japan, for production process of rod assy torque rod for Hino. Saitama Kiki is a company owned by Nishiumi Group (68%) with Hino Motor Ltd. (32%) which produces various automotive components, among others, brake system, tie end rod, torque assy rod, pump oil master clutch, etc. (From a press release on February 6, 2014)

Product Development

-In 2014, PT Astra Komponen Indonesia (ASKI) manufactured seat assembly for 2 wheelers and double seat for trucks.

Capital Expenditure

-Capital expenditure in 2014 amounted to IDR 1.22 trillion was in form of the Company's investments in Subsidiaries and/or Associates and/or Jointly Controlled Entities amounted to IDR 455.87 billion and to increase capacity and business expansion of the Company amounted to IDR 764.00 billion.