listrik tariff

PT Perusahaan Listrik Negara (Persero)
Investor Presentation
March 2014
1. Company Overview
Introduction
PLN is the only state-owned power utility company and the only fully-integrated power utility company in Indonesia.
 PLN is Indonesia’s state-owned electric utility company, wholly-owned by the Republic of Indonesia and is represented by the Ministry of State-Owned
Enterprises
 PLN is the major provider of all public electricity and electricity infrastructure in Indonesia, including power generation, transmission, distribution, construction of power
plans and retail sales of electricity
 Charges for electricity are based on electricity tariff rates that are set by the Government
– Law No. 19/2003 on State-Owned Enterprises (“SOEs”): the Government is obligated to provide subsidy to PLN for the difference between the price charged for
electricity and the cost to produce electricity
Key Business Segments1
Generation
Distribution
Transmission
 Controls 83% of installed generating capacity
approximately 38,502 MW including rentals by an
increase 5.2% (vs 36,612MW as at 2012)
 Owns and operates 5,599 generation
 Main purchaser of electricity from Independent
Power Producers (IPPs)
 Sole provider of power transmission in Indonesia
 Approximately 39,395 kmc of transmission lines by
an increase 3.4% (vs. 38,096 kmc as at 2012)
 81,345 MVA of transmission transformer capacity
by an increase 5.5% (vs. 77,073 MVA as at 2012)
 Sole distributor of electricity to end customers in
Indonesia
 Approximately 798,944 kmc of distribution lines
and 43,184 MVA of distribution transformer
capacity by an increase 7.7% and 6.2%
(vs 741,957 kmc and 40,654 MVA as at 2012)
 Serving approximately 54 million customers
Electricity Sales
Customer Base
(in TWh)
(in millions)
129,0
134,6
2008
2009
147,3
2010
158,0
2011
174,0
2012
187,5
2013
38,6
40,1
42,4
2008
2009
2010
45,9
2011
49,8
54,0
2012
2013
Note: PLN is also the provider of electricity of last resort, in that if PLN is not supplying a particular area and there are no regional-owned companies, private enterprises or cooperatives that elect to supply electricity in that
area, the Government is obligated to instruct SOEs (which includes PLN) to supply electricity to the area.
2
1. As of December 31, 2013
Business Snapshot as of December 31, 2013
PLN distributes and sells electricity to several customer types. The electricity sold is either generated by PLN or
purchased from IPPs.
PLN’s Generating Capacity
Generation Composition
Others
0,02%
Diesel
16%
12%
Purchased
24% 24%
2%
Geothermal
1%
22%
Hydro
9%
Own
Production
76%
Total: 216,189 GWh
Distribution Network Detail
 500 kV interconnected transmission
system with 5,053 kmc
 Medium-voltage line distribution
network of 329,409 kmc
 275 kV transmission system with
1,374 kmc
 Low-voltage line distribution
network of 469,479 kmc
 150 kV transmission system with
28,851 kmc
2%
 362,746
units of distribution
transformers with total capacity of
approximately 43,184 MVA
27%
28%
Combined
Cycle
31%
Gas23%
Turbine
10%
76%
Transmission Network Detail
SteamTurbine
41%
 4,117 kmc of transmissions
systems up to 70 kV
12%
26%
Total: 38,502 MW
Electricity Transmitted and Distributed by Customer Type
Number of Customers by Type
(in TWh)
(in millions)
147,3
129,0
134,6
50,2
54,9
59,8
65,1
48,0
46,2
51,0
54,7
60,2
64,4
22,9
24,8
27,2
28,3
31,0
34,5
2008
7,9
2009
77,2
72,1
9,8
9,3
8,6
Public
3
187,5
174,0
158,0
2010
2011
Business
Industrial
10,7
2012
Residential
2013
38,6
40,1
42,4
35,8
37,1
39,3
0,05
1,7
1,0
11,5
2008
0,05
1,9
1,1
2009
Public
2010
Business
50,1
46,2
42,6
0,05
1,9
1,2
54,0
49,8
45,9
0,05
2,0
1,2
2011
Industrial
0,06
2,4
1,4
0,05
2,2
1,3
2012
Residential
2013
Extensive Generation Network
PLN controls 83% of Indonesia’s total installed generation portfolio of 46,245 MW
Sumatera
Sulawesi
Kalimantan
Hydro
864 MW
Geothermal
110 MW
Steam-turbine
1,332 MW
Combined Cycle
858 MW
Hydro
32 MW
Steam-turbine
266 MW
Combined Cycle
60 MW
Gas-turbine
179 MW
Hydro
223 MW
Geothermal
Steam-turbine
112 MW
Gas-turbine
183 MW
6,193 MW
2,244 MW
Others
2,284 MW
Others
0 MW
Others
3 MW
1,202 MW
Total
1,975 MW
IPP
Total
IPP
Total
Sumatera
Maluku
Kalimantan
Papua
Sulawesi
Java-Bali
NTB
NTT
Java-Bali
Hydro
Geothermal
Steam-turbine
4
2,392 MW
375 MW
13,970 MW
Combined Cycle
7,896 MW
NTB
Gas turbine
2,034 MW
Steam-turbine
NTT
30 MW
Diesel
Diesel
Geothermal
3 MW
Hydro
6 MW
1 MW
Total
272 MW
457 MW
Diesel
324 MW
Others
1 MW
Hydro
1 MW
Hydro
1 MW
Others
5,791 MW
Others
Total
32,916MW
Total
356 MW
Papua
237 MW
Diesel
IPP
15,710 MW
695 MW
Diesel
7,944 MW
568 MW
3,690 MW
948 MW
Total
Steam-turbine
3,519 MW
Diesel
Diesel
IPP
296 MW
Geothermal
Gas-turbine
1,382 MW
56 MW
Total
1 MW
Hydro
8,814 MW
Diesel
IPP
Others
295 MW
Combined
Cycle
1,294 MW
0 MW
Diesel
80 MW
Gas-turbine
Others
Total
Maluku
Total
266 MW
2 MW
243 MW
As of December 31, 2013
8 MW
7,743MW
46,245MW
2. Credit Highlights
Credit Highlights
1
Strong Government Support
2
Benefit From a Fast-Growing Indonesian Electricity Market
3
Efficient Operations with Continuing Improvements
1
Strong Government Support—Clear Subsidy Mechanism
PLN’s subsidy mechanism is based on the Ministry of Finance Regulation No.170/PMK.02/2013. It ensures certainty of the
subsidy amount and a timely cost recovery.
Example:
100%
PSO
Year 01
Subsidy Payment
100%
1Q Yr 1
100%
4Q Yr 0
95%
Dec
Jan
95%
Jan
Feb
95%
Feb
Mar
95%
Mar
Apr
95%
Apr
May
95%
May
Jun
100%
3Q Yr 1
100%
2Q Yr 1
95%
Jun
Jul
95%
Jul
Aug
95%
Aug
Sep
95%
Sep
Oct
95%
Oct
Nov
95%
Nov
Dec
100%
4Q Yr 1
95%
Dec
Jan
95%
Jan
Feb
Year 1
95%
Feb
Mar
95%
Mar
Apr
100%
1Q Yr 2
 PLN receives 95% of the difference between
budgeted costs of production (including the
PSO margin) and actual revenues as its
subsidy each month, received in the
subsequent month
95%
May
 Remainder will be received quarterly – based
on an un-audited report of PLN’s actual costs
95%
Apr
May
Year 2
MOF Regulation No. 170/PMK.02/2013
Budgeted Subsidy
(including PSO margin)
Quarterly adjustment
Subsidy Based on Actual Sales and
Budgeted Costs
Adjustment Based on Audit Report
1. Illustrative timing – the timing of the final amount of electricity subsidy will be based on the timing of the State Auditor’s audit report.
Jun
 The subsidy for the month of November is to
be paid in December and the subsidy for the
month of December is to be put in an escrow
account for PLN’s benefit and paid in
January, in each case based on actual sales
and budgeted costs of electricity
 The final amount of electricity subsidy in one
fiscal year shall be stipulated based on the
State Auditor’s audit report which is submitted
to the Minister of Finance
Total Government Subsidy to PLN
(Rp. in Trillions)
78.6
37.5
2007
7
2008
53.7
58.1
2009
2010
93.2
103.3
101.2
2011
2012
2013
As of December 31, 2013
1
Strong Government Support
The Government of Indonesia’s active involvement emphasizes the importance of PLN’s role in ensuring stable electricity
supply in Indonesia.
Subsidy Calculation
 Extended government loan maturities, converted overdue & penalties into equity in 1998
Government
Financial
Assistance
 Channels loans in which GoI is the primary obligor to lenders (2-step loan)
 Irrevocable and unconditional guarantee on loans for FTP I
 In accordance with Presidential Regulation No. 48/2011, the GoI is required to provide
business viability guarantee letters (“BVGLs”) on FTP II projects
 GoI is involved in almost every critical stage of PLN’s operations: budget setting, capital
expenditure plans, IPP developments and primary energy supply
Close
Involvement of
Indonesian
Government
Costs Covered by Subsidy
 Law No. 19/2003: Obligation to provide subsidy to PLN
 Direct and close involvement of various ministries, such as the Ministry of State Owned
Enterprises, Ministry of Energy and Mineral Resources, Ministry of Finance and Ministry of
the Environment
 Government agencies (i.e. the Board of Finance & Development Control - BPKP, Corruption
Eradication Commission (KPK) and Attorney General Office) assist in implementing Good
Corporate Governance







Power purchases
Fuel and lubricants
Maintenance
Personnel
Administration
Depreciation
Financing costs
Plus…
7% PSO Margin based on Unit Cost
in each voltage level
Minus…
Electricity sales
Timely
& Adequate
Subsidies
 MoF Regulation No. 170/PMK.02/2013
 Continuous review ensuring adequate and timely subsidy payments
Equals...
 7% PSO margin stipulated under Law No. 19 Year 2012.
Electricity subsidy
8
1
Strong Government Support—Tariff Mechanism
Charges for electricity are based on electricity tariff rates which are set by the Government.
 The electricity tariff was raised by an average of 15% in 2013 with the increases being effected on a quarterly basis based on Ministry of Energy and
Mineral Resources (MEMR) Regulation No. 30/2012
 Presidential Regulation No. 8/2011: GOI raised the electricity tariff by an average of 10% with retroactive effect from July 1, 2010
 4 categories of electricity tariffs based on consumer type: residential, industrial, business, and public (such as government agencies and hospitals)
 Each customer category has either a monthly minimum payment or demand charges and variable energy charges
– Prices paid depend on both consumer category and electricity consumption
 Special services tariff for special circumstances and based on a business-to-business approach
 In 2014 GOI will increase tariff for a specific industries (industries I3 (only listed companies) and big industries I4) and impose an automatic adjustment
tariff for residential R3 and business (B2 and B3) including public P1.
Types of Charges
 Demand Charge: Rates vary depending on capacity of electricity
connection and this charge is only applicable to small customers such
as those with a capacity of 450 VA or 900 VA
 Monthly Minimum Payment: Charged for each customer apart from
customers with a capacity of 450 VA or 900 VA
 Variable Energy Charge: Charge fixed rates according to the customer
categories. Charges are increased for peak usage between 6:00 pm
and 10:00 pm for big scale industrial, business and public customers,
but not for residential customers
 Special Service Tariff: Charged for special circumstances and in
particular, for business and industrial customers who require special
services
9
Average Selling Price by Each Customer Group
Rp per KWh
2008
2009
2010
2011
2012
2013
Residential
588
589
616
618
632
692
Industrial
622
644
661
695
710
796
Business
851
891
934
951
965
1,117
Public
680
686
756
775
798
906
Composite
Average
Selling Price
653
670
699
714
728
818
Growing Indonesia Electricity Market Benefits PLN
2
Backed by strong macroeconomic indicators, energy demand in Indonesia is expected to grow significantly in the next
few years.
Relatively Low Per Capita Electricity Consumption1
Growing of Peak Load
(in GW)
(in MWh per Capita)
64.3
59.5
31.9
35.0
38.1
41.3
44.5
47.9
51.3
10,2
55.2
8,4
7,8
5,9
4,2
3,3
Peak Load (GW)
Source: PLN, MEMR
 With higher income levels, increasing urbanization and improving
standard of living, electricity demand is expected to continue to increase
 Ongoing transformation from an agricultural to a manufacturing-oriented
economy has also played a particularly important role in the growth of
demand for electricity
0,4
Source: 1. World Bank.
2. Indonesia’s figure as 2013
 Indonesia’s per capita consumption of electricity, electrification levels
and the installed capacity levels are among the lowest in Asia
 Need for substantial increase in generating capacity is evident by
increasing number of power outages in recent years
As the major provider of electricity in Indonesia,
PLN expects to benefit from Indonesia’s growth in demand for electricity.
10
2
0,6
Pakistan
2022
0,7
Philippines
2021
0,7
Indonesia
2020
Vietnam
2019
Thailand
2018
China
2017
Malaysia
2016
Hongkong
2015
Japan
2014
Singapore
2013
South Korea
1,1
India
2,3
Efficient Operations with Continuing Improvements
3
PLN has continued to successfully improve its operating efficiency.
Implementation of Efficiency Program
Fuel Mix (IPP + PLN Production)
Improving Fuel Mix  Reducing Oil Consumption 2012 from 15% (29.6TWh) to
12% (26.6TWh) in 2013
1
2
Improving and Controlling T&D and Overheads Costs
7%
7%
3
Maintaining Collection Period
Implementing Centralized Online Payment System, Centralized Administration
System & Cash Pooling, Centralized Non Cash Loan Facility, On Line Trade Finance
4
Expanding Prepaid System Intensively Increasing Customers in 2013 (13.15M)
vs 2012 (7.83M) up to 68% and has been No.1 in the world for serving largest
prepaid customers
5
6
Joint Procurement for Maintenance and Material Distribution
7
Manufacturers are the only parties eligible to bid in generation, transmission and
distribution tender processes, open book procurement
System Average Interruption Duration Index (SAIDI)
20%
22%
25%
23%
9%
6%
15%
12%
5%
6%
20%
21%
2%
2%
33%
35%
13%
18%
19%
18%
2%
2%
2%
2%
28%
28%
27%
30%
24%
23%
22%
22%
25%
24%
2008
2009
2010
2011
2012
2013
IPP
Coal
Geothermal
Natural Gas
Hydro
Fuel Oil
Transmission and Distribution Losses
(Hour/customer)
12.0%
10.5%
9.9%
9.7%
9.4%
9.2%
7.9%
7.6%
7.3%
16,7
13,3
9.9%
8.0%
8.5%
7,0
4,7
5,8
3,9
4.0%
2.2%
2.2%
2.3%
2.3%
7.0%
2.4%
2008
2009
2010
2011
2012
7.8%
2.3%
0.0%
2008
2009
2010
2011
2012
2013
Transmission Losses
11
Distribution Losses
2013
System Losses
3. Industry Overview
Still Favorable Macroeconomic Outlook
The ongoing transformation of Indonesia from an agricultural to a service-oriented economy is expected to drive GDP
growth and underpin further demand for electricity consumption.
GDP Growth1
Growing Electricity Demand
(in TWh)
384
280,0
355
329
6%
210,0
188
4%
140,0
0%
51
271
340,
252
236
290,
240,
190,
57
64
70
77
85
94
103
113
2013
2014E
2015E
2016E
2017E
2018E
Global
 Indonesia is the largest economy in Southeast Asia
2013
2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E
Java-Bali
Outside Java-Bali
– 5.9% average real GDP growth over the period of 2008 – 2012
– Indonesia is projected to be the 7th largest economy in the world by
2030 (McKinsey)
 Projected electricity demand growth of 8.29% per annum on average
between 2013 and 2022E
– Consumer expenditure has grown at a CAGR of 13.8% from 2000 –
2012
– 66.6% of the population is of working age (15 – 64 years old) and
68.5% were 39 years and younger as of 2012
Source: Economist Intelligence Unit, IMF, McKinsey, PLN.
1. Percent change, constant prices.
90,0
-10,0
 PLN expects to benefit from the growth in electricity demand given its
dominant presence in the Indonesian electricity market
 Large consumer base with fast growing spending power
140,
40,0
0,0
2012
Indonesia
13
194
306
221
207
70,0
46
2011
245
181
168
155
142
2%
206
225
328
284
390,
 Java-Bali represents ~75 – 80% of energy demand requirements in
Indonesia and more than 70% of total generating capacity
 Expansion of the commercial sector has significantly contributed to the
growth of electricity demand
Electrification Ratio Demonstrates Room for Growth
Ample room for growth in electricity sector based on current Electrification Ratio in Indonesia.
 Low electrification ratio of 80.4% compared to other Asian Developing Countries underscores undersupply
 PLN is mandated to implement Fast Track Programs for capacity expansion to meet Indonesia’s growing demand
– Aim to achieve >90% electrification rate by 2019
– The role of IPPs in providing domestic power will also become increasingly important as the domestic electricity consumption increases
Growing of Indonesia’s Electrification Ratio
Electrification Ratio for Asian Developing Countries1
2019 target: > 90%
100.0%
99.7%
99.4%
97.6%
87.7%
83.3%
80.4%
75.0%
67.4%
(2)
62.4%
63.8%
66.5%
2008
2009
2010
74.3%
76.2%
2011
2012
Electrif ication Ratio
Source: PLN, IEA World Energy Outlook 2012
1. Percentage of population with electricity access
2. Indonesia’s figure as of December 31, 2013
14
80.4%
2013
Fast-Track Programs – Overview
FTP I
Overview of
Fast Track
Program I
36 EPC
Contracts
signed
FTP II
 Presidential Regulation No. 71/2006, subsequently amended by
Presidential Regulations No. 59/2009 and 47/2011
 PLN mandated to build coal-fired power plants in order to reduce
reliance on fuel oil and meet rising domestic electricity demand
 The Government has provided an irrevocable an unconditional
guarantee on loans used to finance FTP I
Overview of
Fast Track
Program II
 36 EPC contracts have been signed:
– 10 locations in Java-Bali (7.5 GW)
– 22 locations outside Java-Bali (2.4 GW)
– 4 contracts have been terminated
 Total additional capacity of 9,9 GW
Project
Construction
 64%, 98%, and 100 % of the construction has / will be
completed as at 2013, 2014E, and 2015E respectively
 6,377 MW of additional capacity has come into operation
Coal Supply
 100% of projected coal requirements for FTP I have been
secured through coal supply contracts
– The coal supply contracts are fixed-volume contracts
expiring in or before 2029
 Presidential Regulation No. 4/2010, subsequently amended by
Presidential Regulation No. 48/2011:and revised by Minister of
Energy and Mineral Resources Regulation No.21/2013 to
procure 17.918 MW
– Additional 9 Unit CFPPs over 7,000 MW are spreading in
West Java and Central Java which will be operated from
2018 to 2020.
 MoF Regulation No. 139, No. 4 Year 2012: the Government
provides business viability guarantees to our company for
undertaking power plant projects, including IPP projects listed in
MEMR Regulations No. 15 Year 2011 through No. 1 Year 2012
and then the latest revision is No.21 Year 2013.
 IPPs to build more than half of the 17,918 MW
Program
Description
Coal-fired
steam
60%
Gas
2%
Hydro
10%
15
 Transmission development projects amounting to approximately
Rp6,303bn plus US$150mm are being developed as part of
FTP I
IPP
68%
Geothermal
28%
Type
Transmission
System
PLN
32%
Project
Construction
Financing
Owner
 Have started construction of coal-fired electricity generating
plants in three locations with aggregate capacity of 140 MW
– Have entered into EPC contracts in relation to these
projects
 PLN’s own projects are mostly financed by two-step loans, and
the remaining from the state budget, bank loans, capital markets
and internal sources
Rationale for Fast Track Program - Fuel Mix Improvement
The Fast Track Program is designed to reduce PLN’s reliance on fuel oil, which currently is PLN’s most expensive fuel
cost of electricity on a per-kWh basis.
Fuel Cost Comparison
Production by Fuel Source
(Rp/kWh)
(GWh)
2,564
2,390
2,500
100%
2,079
2,000
80%
29%
26%
29%
9%
12%
7%
24%
23%
1,610
1,500
1,368
60%
24%
1,000
602
560
500
706
374 326
352 368
789
693
582
556
389
354 349
338
40%
3%
20%
0
8%
26%
27%
3%
46%
45%
0%
2009
2010
Fuel oil
2011
Natural Gas
2012
Coal
2013
2009
Geothermal
2010
Coal
Fuel Costs Breakdown
(IDR)
(IDR)
100% 0,4%
100%
11%
8%
8%
80%
2%
2%
3%
3%
9%
10%
7%
9%
7%
8%
3%
1% 2%
1%
1% 3%
2%
3%
10%
6%
9%
10%
7%
9%
1%
60%
4%
2011
Geothermal
Operating Expenses Breakdown
2012
Natural Gas
Hydro
0,2%
0,2%
0,3%
2013
Fuel Oil
0,2%
80%
1%
56%
46%
52%
58%
67%
60%
0,2%
40%
40%
67%
66%
71%
67%
68%
0%
0,2%
0,1%
0,3%
13%
4%
14%
3%
26%
24%
20%
20%
0,2%
10%
3%
21%
17%
26%
3%
3%
27%
25%
0%
2009
Fuel & lubricants
Maintenance
Others
16
7%
2%
38%
35%
16%
2%
3%
36%
20%
2010
2011
Purchased electricity
Personnel
2012
2013
Lease
Depreciation
2009
Coal
2010
Geothermal
2011
Natural Gas
2012
Hydro
Fuel Oil
2013
Lubricants
As of December 31, 2013
Fast Track I Funding and Development Schedule
COD Schedule
Fast Track I Plants By Owner
(in MW)
3,350
PLN
100%
2,560
1,990
1,867
Total: 9.9 GW
187
Fast Track I Plants by Type and Location
2,560
1,680
Outside
Java-Bali
25%
Coal
100%
1,360
1,290
Java-Bali
75%
300
300
300
300
2009
2010
200
200
-
2011
Java-Bali
17
1,350
60
2012
2013
2014
2015
Outside Java-Bali
As of December 31, 2013
FTP II Development Schedule
Fast Track II Plants By Owner
COD Schedule
(in MW)
PLN
32%
IPP
68%
4,433
Total: 17.9 GW
3,329
Fast Track II Plants by Type and Location
3,110
2,570
Coal-fired
steam
66%
Gas
2%
Outside
Java-Bali
29%
Java-Bali
71%
Hydro
4%
Geothermal
28%
570
1,300
1,146
2,000
615
280
Fast Track II Plants by PLN
Gas
5%
4,358
3,110
Total: 17.9 GW
Coal-fired
steam
65%
2,300
1,875
Outside
Java-Bali
28%
55
55
0
280
2014
2015
786
1,454
115
500
2016
1,000
360
2017
75
2018
2019
PLN
2020
2021
2022
0
40
40
40
40
2023
2024
2025
IPP
Java-Bali
72%
Hydro
24% Geothermal
6%
Note: Status as of December 31, 2013
Total: 5.8 GW
18
IPP Program
Current IPPs in Operation and Under Development1
Background
In Operation
Under
Development
PPAs
 Since 1994 the Government has licensed IPPs to
generate electricity for use in Indonesia
 License allows IPPs to generate a stated amount of
electricity which is to be sold to PLN
 7,743 MW in operation or about 17% of total
national capacity
– Supplied by 40 IPPs
 173 IPPs totaling 9,596 MW are currently under
development
– Mini power plant represents contracts with 142 IPPs
and are generated by Coal, Geothermal and Mini
Hydro with capacity of each power plant’s capacity of
less than 50 MW.
 Agreements with IPPs comprises:
– 40 contracts with respect to electricity generating
plants that have already commenced operations
– 108 agreements with respect o electricity generating
plants that are under development
 Coal-fired IPP PPAs are for periods of approximately 30
years while natural gas IPP PPAs are for periods of
approximately 20 years
 Agreement to purchase 80% of energy base availability
In Operation - 40 IPPs
Under Development - 173 IPPs
(7,743 MW)
(9,596 MW) 1
By type…
Marine Fuel
Oil Diesel
1% 1%
Geothermal
9%
Coal
66%
Others
10%
Hydro
7%
Coal
65%
Geothermal
24%
Gas
16%
By location…
Java
74%
Bali
1%
Kalimantan
1%
Sumatra
13%
Sulawesi
9%
Batam Island
2%
Bali
6% Others
11%
Java
38%
Sumatra
42%
Kalimantan
2%
Sulawesi
1%
1. As of December 31, 2013.
19
Gas
1%
4. Financial Highlights
Financial Profile
Revenue
EBITDA1
(Rp. in Trillion)
(Rp. in Trillion)
300
257.4
232.7
208.0
200
164.0
79.0
100
84.0
1.0 145.0
1.0
54.0
1.0 93.2
103.3
40.0
30.0
112.8
126.7
52.1
50.0
58.0
103.0
90.0
101.2
41.3
37.7
34.0
50%
38.5
42.9
10.0
16.2%
20%
17.3%
2010
2011
2012
2013
Government Subsidy
Others
16.7%
16.5%
15.0%
0.0
2009
Adjusted
(Rp. in Trillion)
35%
36.6
40
29.5
30
20
10
18.4
12.7%
20.7
25%
22.4
4.7x
4.0x
10.8%
12.7%
14.2%
10%
EBIT
2011
3.2x
2012
2013
2.0x
5%
0%
2010
3.2x
2.4x
15%
12.7%
4.0x
3.9x
20%
0
2009
6.0x
30%
2012
2013
0.0x
2008
2009
2010
2011
EBIT Margin
Source: Company filings.
1.
EBITDA refers to income before financial and other items plus depreciation expense, amortization expense and actuarial employee benefit expense — net of payments made during the period
2.
Adjusted EBITDA excluding the effects of IFRIC 4 is derived by eliminating from PLN’s Adjusted EBITDA the components of purchased electricity expense that have been allocated to other line items outside of operating expense in PLN’s consolidated statement of
comprehensive income and consolidated statement of financial position due to the adoption of the IFRIC 4
3.
Interest Expense derived by deducting away the components of financial cost that are considered as part of purchased electricity expense prior to the implementation of the IFRIC 4 Interpretation.
21
10%
0%
2012
2013
Excluding IFRIC 4 Margin
2010
2011
Excluding IFRIC 4
Adjusted EBITDA2 / Adjusted Interest Expense3
EBIT
40%
30%
31.2
28.1
23.5
20.0
153.5
0
2008
2009
Sale of Electricity
60%
60.9
60.0
2.6
2.0
162.0
70.0
2.7
Financial Profile cont’d
Total Borrowings1 / Adjusted EBITDA2
Cash Flow from Operations
(Rp. in Trillion)
38.2
40.0
5.6x
6.0x
5.0x
31.6
30.5
5.0x
4.5x
4.5x
30.0
5.6x
5.4x
4.9x
5.0x
4.8x
4.3x
23.3
3.0x
20.0
10.0
1.5x
6.5
0.0x
0.0
2009
2010
2011
2012
2009
2013
2010
Debt / Adjusted EBITDA
Total Borrowings1 / (Total Borrowings1 plus Total Equity)
64.3%
60.0%
47.0%
49.5%
53.0%
2011
2012
2013
Net Debt / Adjusted EBITDA
Total Borrowings1 / Equity
200.0%
179.9%
56.6%
150.0%
130.3%
45.0%
112.7%
100.0%
88.8%
98.1%
30.0%
50.0%
15.0%
0.0%
0.0%
2009
2010
2011
3
3
2012
2013
2009
2010
3
2011
2012
3
2013
Source: Company filings.
1. Include two-step loans, Government loans, bonds payable, bank loans and medium term notes, certain lease liabilities and electricity purchase payable, but excludes certain lease liabilities and electricity purchase payable that
were recognized due to the implementation of the IFRIC 4 Interpretation1.
2. Adjusted EBITDA refers to income before financial and other items plus depreciation expense, amortization expense and actuarial employee benefit expense — net of payments made during the period
3. As Restated-Financial Statement December 31, 2013 Audited
22
Borrowings Profile As of December 31, 2013
Borrowings1 Summary 2
Borrowings1 Breakdown by Interest Type
(Rp. in Million)
Type
Amount
32,707,043*
Two-Step Loans
8,872,509*
Government Loans
Lease Liability
31,642,916*
Bank Loans—Related to Fast Track Program
59,642,800*
Bank Loans—Not Related to Fast Track Program
15,203,029
Bonds Payable
83,825,989
Electricity Purchase Payable
7,744,673
Total
239,638,959
* Represents debt, directly or indirectly, guaranteed by the Government of Indonesia.
1 Breakdown by Tenor
Borrowings
Total Borrowings1 Breakdown by Currency
Current
7%
Non
current
93%
Source: Company filings.
1. Include two-step loans, Government loans, bonds payable, bank loans and medium term notes, certain lease liabilities and electricity purchase payable, but excludes certain lease liabilities and electricity purchase payable that were
recognized due to the implementation of the IFRIC 4 Interpretation
2. Unamortized discounts allocated pro-rata according to the total debt amounts before discount.
23
Thank You
Appendix
Corporate Structure
Ministry of State Owned
Enterprises (MSOE)
Ministry of Energy and Mineral
Resources (MEMR)
GoI will continue to hold
100% of PLN
Ministry of Finance (MoF)
Ministry of the Environment
National Development Planning
Authority (BAPPENAS)
PT PLN (Persero)
Oversight
PT Indonesia Power
PT Pembangkitan
Jawa Bali
Electricity Generation
Electricity Generation
PT PLN Geothermal
PT Indonesia
Comnets Plus
PT Prima Layanan
Nasional Enjiniring
Geothermal Energy
Generation
Telecommunications for
the Electricity Sector
Engineering and
Construction Services
Note: Excludes Joint Ventures.
26
PT PLN Batam
PT PLN Tarakan
Regional Fully Integrated
Electric Utility
Regional Fully Integrated
Electric Utility
PT PLN Batubara
PT Pelayaran
Bahtera Adhiguna
Majapahit Holding
B.V.
PT Haleyora Power
Coal Supplier for PLN
Shipping Activities
Financial Institution
Electricity Supplier
Corporate Milestones
 2009: 3rd & 4th issuance of US$
Note (US$2 billion), PLN X Bonds
(Rp1.4 Trillion) and PLN III Sukuk
bonds (Rp0.8 Trillion)
 Issuance of the New Electricity
Law (No. 30/2009)
 PSO margin is implemented
 1994: PLN established as a
limited liability state-owned
enterprise
 1992: PLN acquires
funding from capital
markets (1st domestic
bond)
2011
2010
2009
2007
2006
1994
1985
 1989: Electricity supply
business opened to the
private sector
27
 2012: Rating upgrade by
Moody’s to Baa3
2012
 2004: PLN issues
PLN VII Bonds
(Rp1.5 Trillion)
2004
1989
 2012: Enactment of
Government Regulation No
14/2012
2013
 1985: Enactment of Law No.
15/1985 of the Electricity
Act gave PLN exclusive
control over providing
electricity in Indonesia
1992
 2012: 2nd Drawdown of
US$1bn of existing GMTN
Program
 2006: PLN issues 1st
US$ Note (US$1 billion),
PLN VIII Bonds (Rp2.2
Trillion) and PLN I
Syariah Bonds
(Rp0.2 Trillion)
 1994–2004: PLN accesses
the capital markets for
bonds PLN I – PLN VI
 2010: Issuance of
PLN XI and XII
Bonds (Rp5.2
Trillion) and PLN IV
and V Sukuk bonds
(Rp0.8 Trillion)
 2007: 2nd issuance of US$
Note (US$1 billion), PLN IX
Bonds (Rp2.7 Trillion) and
PLN II Sukuk bonds (Rp0.3
Trillion)
 2013: Issuance of
Continuous Bonds PLN I
1st Phase Rp1 Trilion
(Bonds and Sukuk)
 2nd Phase Rp1,67 Trilion
(Bonds and Sukuk)
 2011: Presidential
Regulation No. 8/2011:
Increased Electricity Tariff,
effective 1 July 2010
 2011: Established US$2bn
Global Medium Term Note
Program. Inaugural GMTN
drawdown of US$1bn
 2011: Rating Upgrade by
Fitch to BBB-