PT Astra Daihatsu Motor

Attachment 1

Report Update On	24^th June, 2003

Report on	PT ASTRA DAIHATSU MOTOR

Registered Office	Jalan Gaya Motor III/5 Sunter II, Jakarta 14330, Indonesia

Tel. No.	(021) 6510300, 6510400, 6510500
Fax No.	(021) 6510834
E-Mail
Telex

Attachment 2

SUMMARY

Incorporated	31.05.1978	Status	Satisfactory

Registration No.	C-20367	Chief Executive	Mr. Kantaro Shimizu

Capital (Rp)	338,850,000,000	Payments	Regular

Sales (Rp)	1,604.1 billions	Litigation	--

Net Worth (Rp)		Banking Reputation	Good

No. of Employees	1,400	Auditors

Credit Rating	B (See attachment 3)

BACKGROUND/OFFICIAL DATA

1. Address

Head Office & Factory

Jalan Gaya Motor III/5 Sunter II

Jakarta 14330, Indonesia

Tel. (021) 6510300, 6510400, 6510500

Fax. (021) 6510834

Factory II

Jalan Gaya Motor Barat No. 1 Sunter II

Jakarta 14330

Tel. (021) 6515919, 6515951

Factory III

KIIC, Karawang

West Java

Factory IV

Jalan Gaya Motor Barat No. 2, Sunter

Jakarta 14330

Tel. (021) 6531002

2. Established

31 May 1978 as P.T. Daihatsu Indonesia

Changed to P.T. Astra Daihatsu Motor on 20 December 1991

3. Organization Style

P.T. (Perseroan Terbatas) or Private Limited Liability Company

4. Legalization

No. C-20367.HT.01.04.TH.2002

Dated 21 October 2002

5. Government Permit(s)

a. Investment Coordinating Board

- No. 71/II/PMA/1991

Dated 13 June 1991

- No. 1704/III/PMA/1997

Dated 26 November 1997

- No. 152/II/PMA/1998

Dated 19 October 1998

- No. 23/II/PMA/2000

Dated 21 February 2000

b. Department of Finance

NPWP : 1.000.571.8-055

6. Capitalization

Authorized Capital - Rp. 338,850,000,000

Issued Capital - Rp. 338,850,000,000

Paid-up Capital - Rp. 338,850,000,000

Notes:

Consist of 338,850,000 shares @ Rp. 1,000

7. Shareholder(s)

Foreign Partner(s)

a. Daihatsu Motor Co. of Japan - 61.75%

b. Nichimen Co. of Japan - 6.38%

Local Partner(s)

- P.T. Astra International Tbk - 31.87%

8. Supervisory Board

Chairman - Mr. Kentaro Shimizu

Vice Chairman - Mr. Prijono Sugiarto

Member(s) - a. Mr. Jitsuro Ito

b. Mr. Kenji Okazaki

c. Mr. Meiehiro Morita

d. Mr. Kenzo Miyaki

e. Mr. Budi Setiadharma

9. Management Board

President Director - Mr. Tetsuya Honda

Vice President Director - Mr. Noetjahjo Darmadji

Director(s) - a. Mr. Hiroyuki Hamada

- b. Drs. Sudirman Maman Rusdi

c. Mr. Wiltarsa Halim

d. Mr. Goro Watanabe

e. Mr. Toshihiro Tsuda

f. Mr. Eiji Matsuki

g. Mr. Hiroshi Ueno

10. Registered Activities

a. Automotive Industry

b. General Trading

OPERATIONAL

11. Started Operation

1980

12. Business Category

Manufacturer

13. Line of Business

Automotive Industry

Sole Agent for;

- Daihatsu of Japan

14. Product & Capacity

(Annual)

a. Motor Car (Passenger Car, Commercial

Car and Jeep)

b. Gasoline Motor

c. Steering System

d. Pressbody Component

e. Cylinder Block

f. Transmission Case

g. Cover Transmission

h. Housing Extension

i. Retainer Bearing

j. Cabin & Rear Body (Pick-up and Jeep

k. Chassis (Pick-up and Jeep)

l. Fuel Tank (Pick-up and Jeep)

m. End Tie Rod Sub Assy RH

n. End Tie Sub Assy LH

o. Knuckle Steering RH

p. Knuckle Steering LH

q. Shaft Real Axle

r. Aluminum Parts

100,000

65,000

108,000

60,000

90,000

126,000

90,000

20,000

36,000

108,000

79,817

units

tons

15. Status of Investment

Foreign Investment (PMA)

16. Sales Territory

Local - 97%

Export - 3%

17. Number of Employee

1,400

FINANCIAL INFORMATION

18. Sales Turnover

1999 - Rp. 727.6 billion (audited)

2000 - Rp. 2,097.3 billion (audited)

2001 - Rp. 1,597.3 billion (audited)

2002 - Rp. 1,604.1 billion (estimated)

19. Total Asset

Rp. 1,939 billion (as of 30 June 2002, audited)

20. Investment

US$ 425 million

21. Banker(s)

a. P.T. Bank Permata

Jakarta Sunter Branch

Jalan Gaya Motor I /10, Sunter

North Jakarta

b. P.T. Bank UFJ Indonesia

Jakarta Main Branch

Jalan Jend. Sudirman Kav. 27

Jakarta 12920

c. The Bank of Tokyo Mitsubishi Ltd.

Jakarta Branch

Jalan Jend. Sudirman Kav. 10-11

Central Jakarta

CREDITWORTHINESS

22. Operating Trend

Fluctuated

23. Industrial Trend

Medium

24. Banking Relation

Good

25. Financial Condition

Medium

26. Commercial Morality

Good

27. Management Capability

Good

28. Payment Manner

Prompt

29. Authorized Signatories

President Director, Vice President Director or Director which must be approved by Chairman, Vice Chairman or Member of Supervisory Board

30. Credit Opinion

Caution should be needed in granting credit

31. Affiliate(s)/Associate(s)

Member of the Astra Group

****

P.T. ASTRA DAIHATSU MOTOR

Background

Subject was initially established under the name of P.T. Daihatsu Indonesia as a foreign investment company (PMA) in Jakarta on May 31, 1978. The authorized capital was Rp. 622,500,000 of which was issued and only Rp. 62,250,000 was paid-up. The founding shareholders were Daihatsu Motor Co. Ltd. (10%), Daihatsu Motor Sales Co. Ltd. (10%) and Nichimen Corporation (10%) - three of Japan - and P.T. Astra International Inc. (70%) of Indonesia. Notably, subject's notarial deed has been revised many times. In 1986, its authorized capital was increased to Rp. 3,320,000,000 that was fully issued and paid-up. In this occasion, subject's whole shares are sold to P.T. Daihatsu Motor Co. Ltd. In 1991, subject merged with two members of the Astra Group in automotive, namely P.T. Daihatsu Engine Manufacturing Indonesia and P.T. National Astra Motor. Its authorized capital was then increased to Rp. 86,593,000,000, which was entirely issued and paid-up. At the time, subject was renamed to P.T. Astra Daihatsu Motor. In November 1998, subject’s authorized capital was increased to Rp. 216,000,000,000, which was fully issued and paid-up. Its shares consist of 216,000,000 shares with par value of Rp. 1,000 per share. Meanwhile, its shareholders structure consists of Daihatsu Motor Co. (40%), Nichimen Co. of Japan (10%) – both of Japan, and P.T. Astra International Tbk of Indonesia (50%). Lastly, on 18 September 2002, the authorized capital was increased to Rp. 338,250,000,000 that was entirely issued and paid-up. Meanwhile, the shareholders structure consists of Daihatsu Motor Co. (61.75%), Nichimen Co. (6.38%) and P.T. Astra International Tbk (31.87%). The notarial deed has been legalized by the Ministry of Justice with the deed No. C-20367.HT.01.04.TH.2002 Dated 21 October 2002.

There is information that in March 2003 the shares of Nichimen Co. were taken over by Toyota Tsusho Corp., of Japan. Yet, the notarial deed that stated such revision is not available.

Subject’s local parent company, P.T. Astra International Tbk is a member of the Astra Group, the biggest business group in automotive industry in the country. The group also expands the business into other activities, such as motorcycle industry, heavy equipment industry, photocopy machine industry and IT, agribusiness, infrastructure and others. However, since the monetary crisis in the country since mid 1997, the group's business performance has declined. In the meantime, the group is also facing serious financial problem due to its huge debt of about US$ 2 billion. The debt is now under the restructuring process by Indonesian Bank Restructuring Agency (IBRA).

Operations Outlook

Subject is registered to engage in automotive industry and general trading. In fact, subject has realized its business in automotive industry. It started operation in 1980. In this business, subject acts as the sole agent and assembler of Daihatsu car of Japan that includes jeep, commercial car and passenger car. Besides, subject also manufactures automotive components. To support the business, subject initially managed and operated 3 units of factories for the manufacturing of press-body, engine machines and casing. In 1998, subject constructed another factory on an area of 6-hectare land with the production capacity of 100,000 units per year. This later factory is actually run in three shifts, yet subject only runs in one shift. In its operation, subject receives technical assistance and know-how from Daihatsu of Japan.

Among the cars that are distributed by subject are Daihatsu Zebra, Daihatsu Espass, Daihatsu Feroza, Daihatsu Taft GT 4x4, Daihatsu Carage and Daihatsu Taruna. The 97% of the cars are marketed through 110 Daihatsu outlets all over the country, where the distribution is handled by P.T. Astra Internasional Tbk. While the rest 3% are exported to Malaysia and Vietnam.

Notably, subject has been awarded ISO 9001 and ISO 14001 as an acknowledgement for its quality and environmental management systems, respectively.

In general, business prospect of the automobile electrical system greatly depends on prospect of automotive industry. The prospect of automotive in Indonesia is now going down in line with the drastic decline of motorcars’ demand. In 1998, local demand on automotive products is estimated to decline to more than 70%. Automotive sector is badly influenced because its major components are imported. So far, several companies in this industry have stopped operations. Additionally, the increasing price of various imported products and production cost has also increased the burdens of industrial companies and raise unemployment figures. The total Indonesian car sales have been fluctuating in the last five years. It was 392,185 units in 1997, but abruptly declined to 68,809 units in 1998, later increased to 93,843 units in 1999, then increased again to 310,634 units in 2000, but dropped again to 299,629 units in 2001 and 317,761 unit in 2003

In 2000, subject’s sales percentage was 9.4% of the total national market shares of cars, 6.9% in 2001 and 6.4% in 2002, with the sales volume of 20,586 units in 2001, 20,288 units in 2002 and is projected to reach 23,000 units in 2003.

Basically, subject’s operation has fluctuated in the last three years. Yet, so far subject is still capable to survive owing to its long experience in the business with wide marketing network.

Financial Condition

Subject’s sales turnover has fluctuated in the last three years. It was Rp. 727.6 billion in 1999, Rp. 2,097 billion in 2000, Rp. 1,597.3 billion in 2001, and Rp. 1,604.1 billion in 2002. Meanwhile, its total asset as of 30 June 2002 was Rp. 1,939 billion.

Management

Standing as the management leader is Mr. Tetsuya Honda as president director, assisted by Mr. Nortjahjo Darmadji as vice president director, as well as other seven directors as listed in the profile. They are also supported by a number of capable staffs. The management has long experience in the business and maintains good business relationship with entrepreneurs related to the business, both inside as well as outside the country.

Creditworthiness

Based on the aforementioned facts, we conclude that subject’s operation has fluctuated in the last three years. Yet, so far subject is still capable to survive owing to its long experience in the business with wide marketing network. Basically, subject is evaluated capable to maintain the business up to the short coming time. Yet, considering the uncertainties in the country so far, we suggest caution in granting credit to subject.

Attachment 3

SCORE SHEET

SCORE	CREDIT RATING	STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments. Maybe drawn to slightly difficult position as unfavourable conditions arise. Minimal assurance for timely payment on interest and principal sums	Moderate
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively limited or considered not known. Capability to pay both interest and principal sums is doubtful	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Attachment 4

ACKNOWLEDGEMENT

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