Mr. Jodjana J. Chief Executive Officer Auto 2000 · MARKET & TOYOTA SHARE Toyota & Automotive Market 1 176,941 77,517 262,749 324,680 498,152 319,726 402,787 560,097 458,083 686,03529.1

Institut Teknologi Bandung, 09 December ‘12

Mr. Jodjana J. – Chief Executive Officer

Auto 2000

Toyota & Automotive Market – The Milestone

Toyota’s Success Story 2

Content:

Future Opportunities & Challenges

1

2

3



Content:


1

2

3

MARKET & TOYOTA SHARE

Toyota & Automotive Market 1

176,941

77,517

262,749

324,680

498,152

319,726

402,787

560,097

458,083

686,035

1,065,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Market

24.6

28.5 28.6

31.4

28.5 29.1 30.5 31.3

35.2

39.9

36.9 36.4

40.5 39.7

36.8 37.4

Toyota Market Share (%) Oil Price Hike

Global Financial Crisis

*) 2012 Full Year Projection

COMPETITION MAP

Maker 2000 2012 (Jan – Oct)

# of Model M/S (%) # of Model M/S (%)

Toyota 10 28.8 19 36.5

Daihatsu 3 9.0 6 14.8

Mitsubishi 11 21.6 13 13.4

Suzuki 6 14.7 11 10.8

Honda 3 2.8 7 5.7

Nissan 4 0.7 13 6.4

Others 65 22.4 131 12.4

Total 102 100 190 100


TOYOTA – INDONESIA’s POSITION

Rank 2006 2007 2008 2009 2010 2011 Rank

1 USA USA USA USA USA USA 1

2 JAPAN JAPAN JAPAN JAPAN JAPAN JAPAN 2

3 CHINA CHINA CHINA CHINA CHINA CHINA 3

4 THAILAND THAILAND THAILAND THAILAND THAILAND INDONESIA 4

5 AUSTRALIA AUSTRALIA AUSTRALIA SAUDI ARABIA INDONESIA THAILAND 5

6 CANADA CANADA CANADA AUSTRALIA SAUDI ARABIA SAUDI ARABIA 6

7 SAUDI ARABIA SAUDI ARABIA SAUDI ARABIA CANADA AUSTRALIA AUSTRALIA 7

8 SOUTH AFRICA RUSSIA RUSSIA INDONESIA TAIWAN CANADA 8

9 GERMANY SOUTH AFRICA INDONESIA GERMANY OMAN 9

10 UK INDONESIA OTHERS AFRICA UK CANADA 10

11 ITALY 11

12 INDONESIA 12


TOYOTA’s BUSINESS CHAIN

TOYOTA MOTOR

CORPORATION

(Principal)

TOYOTA ASTRA

MOTOR

(ATPM & Distributor)

HADJI KALLA

NEW RATNA

MOTOR

HASJRAT

ABADI

AGUNG

AUTOMALL

SO ASTRA

INTERNATIONAL

(Corporate)

DEALER

Toyota & Auto 2000 Overview 2

AGUNG AUTOMALL

NEW RATNA MOTOR

HADJI KALLA

HASJRAT ABADI


TOYOTA – MAIN DEALER COVERAGE

NETWORK TOTAL

DKI 78

WEST JAVA 29

EAST JAVA 36

SUMATERA 19

NATIONAL 162

78% of Toyota Indonesia

Customer

Branch Dealer General

Repair

Mainte

nance

Body

Repair

Parts

Counter

Dealer &

Part shop

New Car Service Parts

EM

Stall

Regular

Stall

AUTO 2000’s BUSINESS MODEL


CHIEF

EXECUTIVE

CHIEF

MARKETING

CHIEF

OPERATION

HUMAN

CAPITAL &

GENERAL

SERVICES

FINANCE &

ADMINISTRATION

MARKETING AFTER SALES

OPERATION :

-DKI

-West Java

-East Java +

-Sumatra


AUTO 2000’s ORGANIZATION



Content:


2 2 1

2 3

Customer

Productivity

Satisfaction

Expertise

Loyalty

Loyalty

Satisfaction

Value

Profit

External Service Quality

Employee

Internal Service Quality


THE FRAMEWORK:

Service-Profit Chain Harvard group (James L. Heskett, Thomas Jones,

Gary Loveman, W. Earl Sasser, and Leonard

Schlesinger)

KSF : Delivering Customer Service Excellence

The way we

‘act’ The way we

‘serve’ The way we

‘promise’

Ease

Personal

Reliable

Auto 2000 culture :

Focus on Customer

Integrity

Respect for others

Strive for excellence

Teamwork

AUTO 2000’s CUSTOMER VALUE

Good Corporate

Governance

a. Fairness

b. Efficiency

c. Transparency

d. Accountability


PERFECT HANDLING

TOTAL CUSTOMER OWNERSHIP EXPERIENCE

PROVIDE BEST TOTAL OWNERSHIP EXPERIENCE

OWN


AUTO 2000’s CUSTOMER VALUE




Content:


2 2 1

2 3

BUSINESS OPPORTUNITIES

Future Opportunities & Challenges 3

Indicator 2011 2012 2013 2014 2015 2016

a. Household Consumption 4.7 4.7 – 5.1 4.6 – 5.0 4.7 – 5.3 4.8 – 5.6 4.8 – 5.6

b. Government Consumption 3.2 5.7 – 6.1 4.2 – 4.6 3.6 – 4.2 3.3 – 4.1 3.0 – 3.8

c. Export 13.6 10.6 – 11.1 12.3 – 12.7 12.6 – 13.2 13.0 – 13.8 13.4 – 14.2

d. Import 13.3 11.6 – 12.0 14.3 – 14.7 15.5 – 16.1 16.1 – 16.9 16.4 – 17.2

e. Gross Domestic Product 6.5 6.3 – 6.7 6.4 – 6.8 6.4 – 7.0 6.5 – 7.3 6.6 – 7.4

f. Inflation 3.8 4.5% ± 1.0% 4.5% ± 1.0% 4.5% ± 1.0% 4.0% ± 1.0% 4.0% ± 1.0%

1. Steady Economic Growth

2. Increasing Middle Class Segment ( 38% in 2003 50% in 2010)

*) Source : World Bank, June 2012

BUSINESS OPPORTUNITIES


3. Indonesia still in the Pre Motorization Stage

POTENTIAL FOR ACCELERATED MARKET GROWTH


1. Government Regulation impacting to Automotive Market

BUSINESS CHALLENGES

1. Low Carbon Emission

Low Cost Green Car

LCGC will be the key trend & create new

segment : Good possibility of fiscal

incentive for the automakers

Hybrid Car Program

Government will release government

policy related to hybrid car technology

Import duty will be set to zero percent in

2 years but the automotive industry who

get the incentive should establish hybrid

technology assembly plant in Indonesia

Fuel Subsidy New Regulation

Based on RUU APBN-P 2012 Article 7 par. 6A

“Allows government to adjust price fuel if more

than 15% of ICP in average 6 months”

2. Fuel Subsidy New Regulation

3. Government preference

toward local produced cars

Difficulties in securing number of CBU allocation

from the government


BUSINESS CHALLENGES

2. Aggressive Competitor Movement

Mitsubishi

Mirage Honda

Brio

Suzuki A-Star

Suzuki Alto

Suzuki

Ertiga

Nissan

Evalia

60 83

100 179

181

189

229

231 250

2011 Aug ‘12 End of 2012

9%

6%

Nissan

Growth 67%

c. Network

b. Capacity Enhancement

a. Product: MPV, LCC and SUV Segments

Company Invest

ment*

Business

Plan Capacity Year

Toyota 5.2 Plant

Expansion 100K230K 2013

Daihatsu 3.0 New Plant,

R&D 330K430K 2012

Nissan 3.1 New Plant ,

R&D 100K180K 2014

Suzuki 7.8 New Plant 100K200K 2016

Mitsubishi 1 Capacity Up 70K90K 2013

Honda 3.3 New Plant 60K180K 2014

Hyundai ? Capacity Up 23K73K ?

VW 1.4 New Plant 0K60K ?

GM 1.5 Re-Start

operating 0K50K ?

*100Million$

222

243 316

42.3%

Mitsubishi

Outlander

THANK YOU

Documents

Mr. Jodjana J. Chief Executive Officer Auto 2000 · MARKET & TOYOTA SHARE Toyota & Automotive Market 1 176,941 77,517 262,749 324,680 498,152 319,726 402,787 560,097 458,083 686,03529.1