Astra International. Exhibit 1 : Financial Highlights. Source : ASII, Ciptadana Estimates

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1 HOLD TP: Rp8,050 (+9.9%) Astra International In-line results, Hold rating kept with lower TP Sector Bloomberg Ticker Share Price Performance Automotive ASII IJ Last price (Rp) 7,325 Avg. daily T/O (Rpbn/USDmn) 228.7/16.5 3m 6m 12m Absolute (%) Relative to JCI (%) w High/Low price (Rp) 9,350/7,050 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Outstanding shrs (mn) 40,484 Mkt. Cap (Rpbn/USDmn) 296,542/21,351 Estimated free float (%) 49.0 Major shareholders Jardine Cycle & Carriage 50.1% EPS Consensus Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 ASII Ciptadana Cons. % Diff 2018F F F Arief Budiman ext. 819 budimanarief@ciptadana.com 0% -5% -10% -15% -20% -25% -30% -35% 1yr Rel. to JCI (RHS) 1Q18 net income still within expectation, operating profit beats Astra International (ASII) 1Q18 net income came at Rp4.98 tn, which was slightly down by 2% YoY and met 23-24% of our and consensus FY18F. 1Q18 revenue managed to grow by 14.4% YoY to Rp55.8 tn (25% of our FY18F) while operating profit grew at faster rate of 18.4% YoY to Rp6.0 tn, forming 27% of our FY18F. GPM slightly contracted by 20bps to 20.3% but OPM improved by 40bps to 10.8%. Below operating line, Astra s profitability was weighed down by lower other income (-14.8% YoY) and higher tax effective tax. On quarterly basis, net profit inched up by 6% QoQ as profitability was supported by lower opex (14.2% QoQ) despite flat revenue. We view 1Q18 results were broadly in-line despite slightly weaker net profit but operating profit came higher than our forecast. United Tractors as a savior for group Almost Astra s whole business segments posted lower net income with exception of UNTR which runs heavy equipment, mining contractor, coal mining and general contractor operations. Automotive net income was down by 8% YoY to Rp2.1 tn mainly on the back of sluggish car sales volume (-12% YoY) to 142k units on intensifying competition. This led to ASII market share contracting to 49% in 1Q18 from 57% in 1Q17. Auto operating margin was also lower to 1.5% in 1Q18 from 1.8% in 1Q17. However, this still improved from 0.5% in 4Q17 as the company sold more new model with less discount. ASII launched seven new models and two revamped models. Financial unit net income was down by 6% to Rp1.1 tn, due to a lower contribution from Permata Bank (BNLI) and higher provision in the low-cost car financing segment. Another significant drag to group s earnings came from agribusiness unit (AALI) which saw its net income sharply declining by 55% to Rp283 bn. This was caused by 12% YoY lower in CPO prices and higher costs. The earnings decline at most of segments was nearly offset by 68% increase in UNTR s net income. The strong net income growth was boosted by 39% YoY increase in revenue owing to very solid operating data and margin rise across the board. UNTR reported 1,171 unit (+38% YoY) heavy equipment (HE) volume, 22% increase in overburden (OB) removal and 36% growth in coal production from its own mine. The company also enjoyed higher ASPs on HE, mining contracting and its own mining units as all segments revenue outgrew sales volume. Tweaking down target price to Rp8,050, retaining Hold rating ASII share price has declined by 13.5% Ytd, significantly underperforming the JCI by 9.1%. We believe that much of the negative sentiment towards ASII has been attributed to the declining car market share on tighter competition. At this juncture, we maintain our earnings forecast following in-line 1Q18 results. However, we tweak down our target price for ASII from Rp8,800 to Rp8,050 as we lower basis for our TP to FY18F PER of 15.2x, implying around -0.5stdev of mean valuation (prev: mean PER). We believe intensifying competition in Indonesia car market will remain as Mitsubishi (supported by Xpander) continues stealing market share from Toyota, Daihatsu and Honda. Mitsubishi was ranked No 2 (after Toyota) in 1Q18 with market share gaining from only 11% in 1Q17 to 19% in 1Q18. As our new TP provides limited upside potential from current share price, we retain our Hold rating on ASII. Exhibit 1 : Financial Highlights Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Revenue (Rpbn) 181, , , , ,594 Operating profit (Rpbn) 17,534 20,326 22,056 24,339 27,303 Net profit (Rpbn) 15,156 18,881 21,390 24,446 27,328 EPS (Rp) EPS growth (%) EV/EBITDA (x) PER (x) PBV (x) Dividend yield (%) ROE (%) Source : ASII, Ciptadana Estimates Please see analyst certification and other important disclosures at the back of this report 2

2 Exhibit 2: ASII 1Q18 results Rp bn 1Q18 1Q17 YoY 1Q18 4Q17 QoQ 2018F 1Q/18F Revenue 55,822 48, % 55,822 55, % 221,037 25% Cost of revenue -44,472-38, % -44,472-44, % -176,903 Gross profit 11,350 10, % 11,350 11, % 44,135 26% Gross margin (%) Opex -5,346-4, % -5,346-6, % Operating profit 6,004 5, % 6,004 5, % 22,056 27% Operating margin (%) Interest income % % Interest expenses % % Forex gain (loss) % % Share of controlled entities 1,199 1, % 1, % Share of results of asso % % Other income % 469 1, % Total other income 1,940 2, % 1,940 2, % Profit before tax 7,944 7, % 7,944 7, % Income tax expenses -1,610-1, % -1,610-1, % Minority interest -1, % -1,354-1, % Net income 4,980 5, % 4,980 4, % 21,390 23% Net margin (%) Source: Company and Ciptadana Sekuritas Exhibit 3: Domestic car market share by major brands 45 (%) Toyota Mitsubishi Daihatsu Honda Suzuki Source: ASII Please see analyst certification and other important disclosures at the back of this report 3

3 Exhibit 4: ASII forward PER band (x) 21.4x 19.2x 16.9x 14.8x 11.6x Source: Bloomberg and Ciptadana Sekuritas Please see analyst certification and other important disclosures at the back of this report 4

4 Exhibit 5 - Income Statement Year to 31 Dec (Rpbn) 2016A 2017A 2018F 2019F 2020F Revenue 181, , , , ,594 COGS -144, , , , ,113 Gross profit 36,432 42,368 44,135 48,513 51,481 Oper. expenses -18,898-22,042-22,078-24,175-24,178 Oper. profit 17,534 20,326 22,056 24,339 27,303 EBITDA 25,076 28,192 32,176 35,244 39,068 Interest income 1,699 1,982 1,263 1,481 1,931 Interest expense -1,745-2,042-1,411-1,641-1,536 Other income (exp.) 4,920 8,939 9,368 10,088 10,819 Pre-tax profit 22,253 29,196 31,275 34,267 38,516 Income tax -3,951-6,031-5,175-5,012-5,292 Minority interest -3,178-4,112-4,710-4,809-5,896 Net profit 15,156 18,881 21,390 24,446 27,328 Exhibit 6 - Balance Sheet Year to 31 Dec (Rpbn) 2016A 2017A 2018F 2019F 2020F Cash & cash equivalent 30,256 31,879 37,163 48,429 54,499 Acct, receivables 18,946 25,351 23,736 25,535 27,447 Inventory 17,771 19,504 20,841 22,299 24,046 Other curr, asset 43,430 44,559 44,157 45,844 46,689 Total current asset 110, , , , ,681 Fixed assets - net 42,237 48,402 64,477 65,073 60,626 Other non-curr.asset 102, , , , ,664 Total asset 261, , , , ,302 ST debt + curr. maturity 45,820 43,584 44,413 41,040 42,286 Acct, payable 22,489 29,468 32,542 34,819 37,548 Advances received 4,436 4,465 3,285 3,534 3,799 Other curr. liab 16,334 21,205 18,258 19,346 20,802 Long term debt 25,090 31,394 36,644 39,794 28,448 Other non-curr, liab, 7,780 9,201 7,617 8,039 8,663 Total liabilities 121, , , , ,546 Shareholder equity 111, , , , ,451 Minority interest 27,955 32,684 39,592 43,792 48,305 Total liab + SHE 261, , , , ,302 Exhibit 7 - Per Share Data (Rp) 2016A 2017A 2018F 2019F 2020F EPS BVPS 2, , , , ,062.2 DPS FCF per share Source : ASII, Ciptadana Estimates Please see analyst certification and other important disclosures at the back of this report 5

5 Exhibit 8 - Cash Flow Year to 31 Dec (Rpbn) 2016A 2017A 2018F 2019F 2020F Net income 15,156 18,881 21,390 24,446 27,328 Depreciation 7,542 7,866 10,120 10,905 11,765 Chg in working cap. 1,328-1,159 3, Other -4,619 4,254-3, CF-Oper activities 19,407 29,842 31,137 34,022 39,038 Capital expenditure -4,478-13,731-11,319-9,677-8,671 Others -6,320-16,442-16,332-6,792-7,126 CF-Investing activities -10,798-30,173-27,652-16,470-15,797 Net change in debt 261 4,068 6, ,099 Net change in equity Dividend payment -7,232-7,578-9,441-10,695-12,223 Other financing -5,090 6,150 5,325 4,621 5,137 CF-Financing activities -6,354 2,548 1,963-6,297-17,185 Net cash flow 2,255 2,217 5,449 11,254 6,056 Cash - begin of the year 27,102 29,357 31,574 37,023 48,278 Cash - end of the year 29,357 31,574 37,023 48,278 54,334 Exhibit 9 - Key Ratios Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Growth Revenue (%) Operating profit (%) Net profit (%) Profitability Ratios Gross margin (%) Operating margin (%) EBITDA margin (%) Net margin (%) ROA (%) ROE (%) Liquidity Ratios Current ratio (x) Quick ratio (x) Cash conversion cycle (days) Activity Ratio Inventory turnover (days) Receivable turnover (days) Payable turnover (days) Solvency Ratio Interest cover (x) Debt to equity ratio (x) Net debt to equity (x) Source : ASII, Ciptadana Estimates Please see analyst certification and other important disclosures at the back of this report 6

6 HEAD OF RESEARCH ANALYST ANALYST Arief Budiman Erni Marsella Siahaan, CFA Yasmin Soulisa Strategy, Automotive, Heavy Equipment, Banking Property, Plantations Construction, Shipping T ext 919 T ext 799 T ext 819 E siahaanerni@ciptadana.com E soulisayasmin@ciptadana.com E budimanarief@ciptadana.com ECONOMIST ANALYST ANALYST Imanuel Reinaldo Niko Margaronis Fahressi Fahalmesta T ext 820 Telecommunication, Tower, Healthcare Cement, Toll Road, Poultry E reinaldoimanuel@ciptadana.com T ext 734 T ext 735 E margaronisniko@ciptadana.com E fahalmestafahressi@ciptadana.com ANALYST ANALYST TECHNICAL ANALYST Stella Amelinda Fransisca Maharani Putri Trevor Gasman Consumer Media, Retail T ext 934 T ext 740 T ext 760 E gasmantrevor@ciptadana.com E amelindastella@ciptadana.com E putrifransisca@ciptadana.com RESEARCH ASSISTANT Sumarni T ext 920 E sumarni@ciptadana.com EQUITY SALES Co HEAD OF INSTITUTIONAL SALES Dadang Mulyana Plaza ASIA Office Park unit 2 Plaza ASIA Office Park unit 2 Jl. Jend. Sudirman Kav. 59 Jl. Jend. Sudirman Kav. 59 Jakarta Jakarta T ext 838 T ext 807 Co HEAD OF INSTITUTIONAL SALES The Fei Ming F F E mulyanadadang@ciptadana.com E thefeiming@ciptadana.com BRANCH OFFICES JAKARTA - MANGGA DUA JAKARTA - PURI KENCANA SURABAYA Komplek Harco Mangga Dua Perkantoran Puri Niaga III Intiland Tower Surabaya Rukan Blok C No.10 Jl. Puri Kencana Blok M8 No.2E Ground Floor Suite 5 & 6 Jl. Mangga Dua Raya Kembangan Jl. Panglima Sudirman Jakarta Jakarta Surabaya T T T F F F SEMARANG Gedung Menara Suara Merdeka 6th Floor Unit 02 Jl. Pandanaran No.30 Semarang T F Please see analyst certification and other important disclosures at the back of this report 7

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