PT BFI FINANCE INDONESIA: 9M16 RESULTS

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October 2016

* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations

9M16 KEY UPDATES

2

GROWTH

• Receivables and Revenue growth, amidst economic challenges

• Total Receivables grew 13%

• Net Revenue growth of 12% driven largely by shifting receivables composition to higher yield products

• 3 new outlets in 3Q16

PROFITABILITY

• 9M16 PAT 22% yoy to Rp554 billion, with ability to maintain yields, lower cost of credit and strong receivables growth

ASSET QUALITY

• NPL is 1.75% and Net Write-off is 1.09%

BALANCE SHEET HIGHLIGHTS

3

In Rp bil (unless otherwise stated)

9M16 9M15 YoY FY15 FY14 YoY

New Bookings 7,669 7,844 2.2% 10,058 9,295 8.2%

Managed Receivables^ 12,639 12,439 1.6% 12,229 11,220 9.0%

Total Receivables 11,029 9,781 12.8% 10,078 8,720 15.6%

Total Assets 13,334 14,454 7.8% 11,770 9,683 21.6%

Total Borrowings^ 8,569 10,122 15.4% 9,457 8,039 17.6%

Total Equity 4,197 3,935 6.7% 4,019 3,567 12.7%

^ Includes channeling and joint financing transactions

* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations

Continued slowdown in New 4W and HE businesses resulting in slower bookings and receivables growth

• In line with strategy to scale down New 4W business which has shrunk by 80.5% yoy

• Mainly due to strengthening of IDR against USD which affect the amount of derivative financial assets

• No economic value impact from this adjustment

PROFIT & LOSS HIGHLIGHTS

4

In Rp bil (unless otherwise stated)

9M16 9M15 YoY FY15 FY14 YoY

Interest Income 1,873 1,786 4.9% 2,415 1,989 21.4%

Financing Cost (759) (784) 3.2% 1,063 822 29.3%

Net Interest Income 1,115 1,003 11.2% 1,353 1,167 15.9%

Fee Based & Other Income

598 524 14.2% 713 588 21.3%

Net Revenue 1,713 1,526 12.2% 2,066 1,754 17.8%

Operating Expenses (798) (723) 10.3% 968 802 20.7%

Operating Income 916 803 14.0% 1,099 953 15.3%

Cost of Credit (197) (238) 17.5% 263 202 30.0%

PBT 719 565 27.3% 835 751 11.3%

PAT 554 455 21.7% 650 600 8.4%

• Yield improvement of 42 bps YoY attributable to non-dealer financing

• In line with revenue growth

• Includes tax provisions for tax assessment in prior FY

Continued improvements in portfolio yield and Net Interest Margins

* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations

• Lower interest rates for new borrowings and decrease in total borrowings yoy

• Coming off the top of the delinquency cycle, resulting in lower write-offs

NOTE: Profit & Loss Highlights includes channeling and joint financing activities

KEY RATIOS

5

9M16 9M15 YoY FY15 FY14 YoY

Net Interest Margin 8.63% 8.16% 47 bps 8.20% 7.85% 35 bps

Cost to Income 46.56% 47.38% 82 bps 46.83% 45.84% 99 bps

COC 2.12% 2.64% 52 bps 2.17% 1.94% 23 bps

ROAA** 8.23% 7.20% 103 bps 7.79% 8.35% 56 bps

NPL* 1.75% 1.59% 16 bps 1.33% 1.48% 15 bps

Debt / Equity 1.6x 1.7x 0.1x 1.6x 1.5x 0.1x

* Defined as Pastdue >90 days, Calculated from total managed receivables (included off B/S receivables) ** Calculated as PBT/Average Assets

• Continue focusing on products with higher yields with ability to maintain NIMs

• Continue to show manageable asset quality despite challenging economic conditions

Maintains stable NIM and NPL despite of industry headwind

• Mainly driven by several large Leasing accounts

5,487 7,373 9,570 11,220 12,229

5,742

6,993

8,652 9,295

10,058

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2011 2012 2013 2014 2015

Rp

bil

ABILITY TO BUILD A MORE ROBUST BALANCE SHEET

6

Bookings vs Receivables Growth (2011-9M16)

Sustainable loan and revenue growth over the years – backed by better asset mix

Revenue Growth (2011-9M16)

12,439

12,639

7,844 7,669

9M15 9M16

Bookings Managed Receivables

CAGR B: 15% R: 22% • Able to improve quality and

tenor of loans booked, resulting in consistently faster Receivables growth compared to Bookings

• Slower bookings due to decrease in New 4W and Heavy Equipment financing

1,261 1,582 1,890 2,299 2,831

-

500

1,000

1,500

2,000

2,500

3,000

2011 2012 2013 2014 2015

Rp

bil

Revenue

• Consistently strong growth in Revenue as a result of robust balance sheet

• Shows ability to maximise income generation from assets 2,070 2,360

9M15 9M16

CAGR 22%

* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations

+14%

2%

STABLE PROFITABILITY OVER THE YEARS

7

PAT Growth ROAA Performance Cost-to-Income*

425 490 509

600 650

455

554

-

100

200

300

400

500

600

700

Rp

bil

11.5%

7.4%

9.0% 8.3%

7.8% 8.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2011 2012 2013 2014 2015 2016

42% 42% 45% 45% 46% 45%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 9M16

• PAT growth in spite of slowing economy

• Continued efficient OPEX management in spite of aggressive expansion over the years

• One of the highest ROA companies in the industry

• Consistently outperformed industry

• Cost-to-income stable in spite of expansion

* G&A + Marketing Expense/Net Revenue * 2016 annualised based on Sep-16 results ** Using PBT/Average Assets

Still one of the most profitable multifinance companies, with ROAs much ahead of the industry

CAGR 11%

ASSET QUALITY UNDER CONTROL

8

NPL Trend (2011-1H16) Write-Offs (2011-1H16)

0.66%

0.82% 0.89%

1.38%

1.83%

1.67%

0.43% 0.52%

0.64%

0.99%

1.38%

1.09%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

2011 2012 2013 2014 2015 9M16

Gross Write-Off % Net Write-Off %

• Increase in NPL from Heavy Equipment business • In spite of difficult economic and commodities sector conditions, managed to record lower write off than its peers

1.20% 1.05%

1.38% 1.48% 1.33%

1.75%

2.66%

2.18%

2.58%

3.46%

1.58%

4.35%

0.98% 0.85%

1.20% 1.22% 1.30% 1.39%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

2011 2012 2013 2014 2015 9M16

NPL % Leasing NPL% Consumer Financing NPL %

Improved write-offs and manageable NPLs due to rigorous collections and balance sheet management

STRONG CAPITAL BASE

Cost of Funds (2011-9M16)

9

41% 37% 33% 31% 30% 33%

40%

31% 31% 34%

42% 39%

8%

15% 14% 14%

12% 15%

12% 18% 22% 21%

16% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 9M16

Equity Bank borrowings Bonds & MTN Channelling & JF

• Increasingly more diversified funding sources, which has helped especially in the last year to mitigate increasing cost of borrowings from local banks

Source of Funding (2011-9M16)

12.7%

11.3% 10.6%

11.2% 11.5% 11.4%

6.6% 5.8%

6.5%

7.8% 7.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2011 2012 2013 2014 2015 9M16

BFIN Cost of Funds Average BI Rate

* SBI Rate no longer relevant after July 2016

Capital structure more diversified, resulting in better management of borrowing cost and stable NIM

• Cost of fund improving due to cheaper new borrowing rates

2,366 2,862 3,363 3,567 4,019 4,197 Equity

(Rp bil)

10

MINIMUM MARKET RISK EXPOSURE

Interest rate mismatch (Sep-2016)

• Strong balance sheet, consistently showing positive maturity mismatch in assets and liabilities

Maturity mismatch (Sep-2016)

Minimal mismatch – highly resilient to market downturns

• Minimal interest rate exposure - Receivables are in fixed rate, whilst only 3% of total debt have floating interest rate

6,479

3,297

1,904

3,771

2,332

1,380

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1 year 2 years 3 years

Rp

bil

Assets Liabilities

Fixed rate, 97%

Floating rate, 3%

ASSET COMPOSITION

11

Booking Composition (9M15 vs 9M16)

Managed Receivables Composition (9M15 vs 9M16)

14% 3%

18%

19%

48%

54%

9% 11%

9% 11%

2% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

9M15 9M16

Dealer New 4W Dealer Used 4W Non Dealer 4WNon Dealer 2W Leasing - HETO Other

20% 12%

24%

24%

39% 44%

5% 6%

11% 12%

1% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

9M15 9M16

Dealer New 4W Dealer Used 4W Non Dealer 4WNon Dealer 2W Leasing - HETO Other

Continuous effort to shift the business towards higher yield and lower ticket segments

Sumatera

55 outlets

20%

Greater Jakarta

32 outlets

20%

Sulawesi and East

55 outlets

Java and Bali

107 outlets

Total 281

Outlets

Kalimantan

32 outlets 11%

DISTRIBUTION NETWORK

11%

12

Business Distribution and Branch Network

38%

Denotes % Outlets by Region

Current expansion strategy continues in more highly populated and higher income areas

19%

2015 Sep-16

19% 19%

2015 Sep-16

15% 13%

2015 Sep-16

19% 17%

2015 Sep-16

13% 14%

2015 Sep-16

34% 37%

Denotes % Managed Receivables by Region