Slides for team presentation at MMUGM class of Industry and Competitive analysis

1. Industry & Competitive Analysis - Automotive Industry - Group 4 Danny Dharmawan Kosasih Ratih Damayanti Widyarini Utami

3. Introduction

8. IIMS 15 th 19 - 28 July ‘07

9. Structure

11. Market Structure: ATPM Competition Source: Gaikindo – Q1 2007 China Chery Unicor Prima Motor, PT France Renault Auto Euro Indonesia, PT Japan Hino Hino Motor Sales Indonesia, PT South Korea Ssangyong Indobuana Auto Raya, PT Japan Nissan Nissan Motor Indonesia, PT Germany Audi, VW Caravelle Garuda Mataram Motor Sweden Volvo Central Sole Agency, PT Japan Suzuki Indomobil Suzuki International, PT Indomobil Group Germany BMW Tjahja Sakti Motor, PT France Peugeot Astra France Motor, PT Japan Daihatsu Astra Daihatsu Motor, PT Japan Nissan Diesel Astra Nissan Diesel Indonesia, PT Japan Isuzu Pantja Motor Japan Toyota Toyota Astra Motor, PT Astra Group : Countries of Origin Brands Name of company ATPM by groups and brands

17. Assembling Companies & Capacity Source: Gaikindo – Q1 2007 51,000 Isuzu PMA 1974 Pantja Motor, PT 170,000 Toyota PMA 1971 Toyota Astra Motor, PT 1,440 Mitsubishi Bus PMDN 1986 Trijaya Union, PT 21,000 Suzuki, Mazda, KIA PMDN 1971 National Assemblers, PT 100,000 Mitsubishi Colt 120SS, Colt L300, Colt Diesel FE, Fuso PMDN 1975 Krama Yudha Ratu Motors,PT 12,000 Audi, VW, Ssangyong, Volvo, Nissan PMA 1995 Nissan Motor Indonesia, PT 42,000 Honda PMA 1976 Honda Prospect Motor, PT 10,000 Hino PMA 1982 Hino Indonesia Manufacturing, PT 120,000 Suzuki PMA 1976 Indomobil Suzuki International, PT 30,400 Chevrolet PMA 1993 General Motor Indonesia, PT 60,000 BMW, Isuzu, Peugeot, Daihatsu, Nissan, Diesel PMDN 1969 Gaya Motor, PT 8,000 Chrysler, Dodge, Jeep PMA 1970 PT (Mercedes Benz Ind, PT) Mercedes Benz, Daimler Chrysler Indonesia, 6,500 Nissan Diesel (Truck) PMA 1984 Astra Nissan Diesel Ind, PT 105,000 Daihatsu PMA 1978 Astra Daihatsu Motor, PT Prod. Cap. (unit/year) Brand Status Year of Estblsh Name of assembling Company

18. Largest Brands Sales in Indonesia 2005-2006 Source: Gaikindo – 2007 100 318,904 Total Domestic Sales 100 533,917 Total Domestic sales 73,4 234,101 Sub total 71,1 379,465 Sub total 3,4 10,722 Mitsubishi L 300 3,5 18,846 Isuzu Panther 10 3,6 11,615 Isuzu Panther 3,6 19,431 Mitsubishi L 300 9 3,9 12,283 Suzuki APV 4,2 22,187 Mitsubishi T-120 SS 8 4,2 13,479 Toyota Dyna 5,2 27,505 Daihatsu Xenia 7 5,8 18,581 Honda Jazz 5,2 27,882 Suzuki APV 6 6,8 21,740 Mitsubishi Colt Diesel FE 6,0 32,241 Honda Jazz 5 7,3 23,301 Suzuki Carry/ Futura 6,6 35,470 Mitsubishi Colt Diesel FE 4 7,4 23,555 Daihatsu Xenia 9,9 47,896 Suzuki Carry/ Futura 3 14,6 46,565 Toyota Kijang 10,3 54,893 Toyota Avanza 2 16,4 52,260 Toyota Avanza 17,4 93,114 Toyota Kijang 1 % Units Brand/model % Units Brand/model Year 2006 Year 2005 Ranks

21. Luxury sales tax (PPnBM) effective after the revocation of PP No. 41 Source: Gaikindo – Q1 2007 5% 25% 20% GVW < 5 ton Double Cabin, All CC Double Cabin 4X2/4X4 Commercial Car 0% 75% 75% CC > 3,0 lt 10% 50% 40% 1,5 lt < CC = 3,0 lt 0% 30% 30% CC < 1,5 lt SUV (4X4) 0% 75% 75% CC > 3,0 lt 10% 50% 40% 2,5 lt < CC = 3,0 lt 5% 25% 20% 1,5 lt < CC = 2,5 lt 0% 10% 10% CC < 1,5 lt MPV (4X2) 0% 75% 75% CC < 3.0 lt 10% 50% 40% 1,5 lt < CC <3,0 lt 0% 30% 30% CC < 1,5 lt Sedan Passenger Car Increase 2005 (cancelled) 2003 (effective) PPnBM Engine Capacity Category

23. Conduct

24. Automotive Industry in Porter’s Five Forces Competition among Rivalry Buyers (Buyer Power) Suppliers (Suppliers Power) Threat of New Entrant Substitutes Source: Michael E. Porter - Competitive Strategy

26. Rivalry among the competition: Car maker companies Source: Gaikindo – 2007 PT. Honda Prospect Motor PT. Tjahja Sakti Motor PT. Hino Indonesia Manufacturing PT. Indomobil Suzuki PT. Astra Daihatsu Motor PT.Toyota Astra Motor Name of companies Honda Motor Co. Ltd 51% Honda Prospect Motor 49% Honda Motor Co. Ltd 49% Honda Prospect Motor 51 % 1,602 bio PT. Tjahja Sakti Motor (manufacturing) - Astra International 100% PT BMW Indonesia (Sales / Distribution) - BMW AG 100% BMW AG 50% Astra International 50% n/a Hino Manufacturing 90% Indomobil Sukses Int'l 10%- Hino Manufacturing 60% Indomobil Sukses 20% Sumitomo Corp. 10% 557 bio Suzuki Motor Corp. 90% Indomobil Sukses Int'l 10% Suzuki Motor Corp 40% Indomobil Sukses Int'l 51% n/a Daihatsu Motor Corp 61.75% Toyota Tsusho Corp. 6.38% Astra International 31.87% Daihatsu Motor Corp. 40% Nichimen Corp. 10% Astra Int'l 50% 2,174 bio Toyota Motor Manufacturing Indonesia (TMMIN) - (manufacturing) - Toyota Motor Corp. 95% - Astra International 5% Toyota Astra Motor (TAM) - (distribution) - Toyota Motor Corp. 49% - Astra International 51% Toyota Motor Corp. 49 /o Astra International 51% 4,065 bio Shareholders and share split after restructuring Shareholders and share split before restructuring Total Assets (Rp)

27. Rivalry among the competition: New Brand/Model (1) BMW 740i BMW 620i BMW X3 BMW 320i Honda New City BMW 120i Suzuki Carabian Toyota Hi Lux Hyundai New Atoz Toyota Camry June Mercy A-150 BMW 760 Li May Chevrolet Zafira KIA Big Up KIA Picanto KIA Carens SE Plus Toyota Limo April Peugeot 407 Mercedes CLS 500 Mercedes CLS 350 Audi A8 Daihatsu Taruna OXXY KIA Sorento March Nissan Murano Nissan TiiDa Honda Jazz Mitsubishi Grandis Suzuki Every February Honda New CRV Mazda RX 8 Honda Odyssey Daihatsu Xenia Toyota Yaris Toyota Kijang Innova Toyota Avanza January Year 2006 Year 2005 Year 2004 New products Month

28. Rivalry among the competition: New Brand/Model (2) Mercedes B170 Mercedes E280 Mercedes C280 Mercedes C230 VW Touareg October KIA Pride Ford Ranger DC Ford Focus Nissan Teana Chery QQ Suzuki Swift Toyota Kijang Innova September VW New Caravelle Mercedes R350L Chevrolet Spark Nissan Latio Peugeot 407 2,9 Nissan New Serena Chevrolet Kalos BMW 750 Li Daihatsu New Taruna Daihatsu Xenia VVTi BMW 523 Daihatsu New Zebra Toyota Avanza VVTi Mitsubishi Maven Suzuki APV August Nissan X-Trail STT Renault Megane Hyundai Azera Hyundai Tucson Chevrolet Aveo Suzuki Grand Vitara Toyota Fortuner Nissan New Cedric July Year 2006 Year 2005 Year 2004 New products Month

32. Buyers (1) : Sole Distributor Source: Gaikindo – 2007 124 PT Astra International Daihatsu Sales Operation PT Astra Daihatsu Motor Daihatsu Motor Co. Daihatsu 25 PT Astra International Peugeot Sales Operation PT Astra France Motor Peugeot Motor Co. Peugeot 30 PT Hino Motor Sales Indonesia PT Hino Motor Manufacturing Indonesia Hino Motor Ltd Hino 22 PT Daimler Chrysler Distribution Indonesia PT Daimler Chrysler Indonesia Daimler Chrysler Mercedes 23 PT BMW Indonesia PT Tjahja Sakti Motor BMW AG BMW 98 PT Astra Intl. - Isuzu Sales Operation PT Pantja Motor Isuzu Motor Ltd Isuzu 202 PT Indomobil Niaga International PT Indomobil Suzuki International Suzuki Motor Corporation Suzuki Number of Dealers Sole distributors ATPM Principals Brands

33. Buyers (2) : Main Dealers Source: Gaikindo – 2007 54 Honda Jakarta Centre Honda Bandung Centre Honda Semarang Centre Honda Surabaya Centre Honda Cikarang Centre PT. Honda Prospect Motor Honda Motor Co. Ltd Honda 142 Auto 2000 PT. New Ratna Motor PT. Hadji Kalla Trading Company PT. Hasrat Abadi PT. Agung Automall Toyota Astra Motor Toyota Motor Corporation Toyota Number of Dealers Main Dealers ATPM Principals Brands

34. Buyers (3) : Official & Independent Dealers Source: Gaikindo – 2007 46 PT. General Motor Indonesia General Motor Corporation Chevrolet 6 PT. Ford Motor Indonesia Ford Motor Company Ford 77 PT. KIA Mobil Indonesia KIA Motor Corporation KIA 36 PT. Hyundai Indonesia Motor Hyundai Motor Company Hyundai 140 PT. KTB Mitsubishi Motor Company Mitsubishi Number of Dealers ATPM Principals Brands

36. New Entrant – Threat From Chinese Car

38. Summary High Industry Attractiveness Low Buyer power Medium Supplier power Medium to High Substitutes/Complements Low to Medium Entry High Internal rivalry Threat to profits Force

39. Performance

42. Car Sales By Categories 2005 - 2006 Source : Gaikindo Q1 2007 318,904 40,738 56,921 203,342 17,903 2006 533,917 66,401 103,731 328,272 35,513 2005 Truck Pick Up MPV-SUV Sedan Total Category of comm. Cars Category of pass. Cars Year

43. Sales in 2007 Increasing Source: Gaikindo – 2007

44. Profitability Sources: Financial Statement each company 0.11 0.14 0.13 0.13 0.14 ROE 0.04 0.05 0.05 0.05 0.05 ROA Toyota 0.16 0.16 0.15 0.14 0.13 ROE 0.06 0.06 0.05 0.06 0.05 ROA Honda 2003 2004 2005 2006 2007 – Q1

45. Competitive Strategy

49. Thank You