Post on 17-Mar-2019
PT XL PT XL AxiataAxiata, , TbkTbk. (XL). (XL)
Corporate PresentationCorporate Presentation
9M 20109M 2010
This document contains confidential and proprietary information belonging to PT XL AxiataTbk.,
which information may be used only in connection with the business of PT XL AxiataTbk.
1
XL has generated steady increase in shareholder values
0
5
10
15
20
8.20%
3Q 09
4.20%
2Q 09
4.40%
3Q 10
16.50%
2Q 10
14.20%
1Q 10
11.20%
4Q 09
5,400
3,500
1,300
1,2500
1,000
2,000
3,000
4,000
5,000
6,000
3Q 102Q 10
4,075
1Q 104Q 09
1,930
3Q 092Q 09
-10
0
10
20
30
40
3Q 10
36.80%
2Q 10
32.90%
1Q 10
27.20%
4Q 09
20.80%
3Q 09
-0.90%
2Q 09
1.80%
34.7029.80
16.40
9.20
8.90
45.90
0
10
20
30
40
50
3Q 102Q 101Q 104Q 093Q 092Q 09
Closing Share Price (Rp)Closing Share Price (Rp) Market Capitalization (Rp. Tn)Market Capitalization (Rp. Tn)
RoICRoIC Normalized ROENormalized ROE
XL ranks 16th
for market capitalization in
IHSG (Indonesia)
2
Revenue
EBITDA
EBIT
PAT
Total Assets
9M10 vs. 9M09
32%
60%
157%
73%
-6%
Net Debt/Equity
Net Debt/EBITDA
3.1 x 0.9 x
3.2 x 1.2 x
9M09 9M10
RoIC
Normalized ROA
Normalized ROE
4.2%
- 0.2%
- 0.9%
16.5%
10.7%
36.8%
Asset
Productivity
Operating
Profitability2
Top-Line
Growth1
3
XL will continue to execute against 3 key value drivers
3
Asset
Productivity
Operating
Profitability2
Top-Line
Growth1
3
� Strong brand preference
� Relevant offers
� “Menu” based offers through *123#
� Capture growth in Data services through Motricity platform
� Intentional user experience
4
Driving affordable voice benefits
Source: Company data; Jun 2010 State of Indonesian Market Survey
Driving Blackberry
and internet
Fun & exciting brand – Fun book, XL Smile portal
Leading in innovation and affordability
Second brand preferred for purchase2nd strongest brand in “Spontaneous
Awareness” inducing strong usage
Strong brand preferrence
3789
26
34
9
XL
495357
7181
XL
5
Pulsa Rp.1000 aktif s/d 12 May10. Pilih Nelpon GILA!
1.Nelpon GILA
2.Jagoan Nelpon Xtra
3.Paket SMS
4.Internet & Blackberry
5.XL Konten
6.Lainnya
Response:
• Relevant info
• E.g. Account Balance
information
• Single access for all
• No need for different access
codes to purchase different
offers
• New & relevant offerings
• New pricing plans for Voice
and SMS
• BB registration
• Add-ons: e.g. for Data and
VAS
Current capabilityCurrent capability
Enhanced *123# for better
user experience
Single interface, *123#
Already ahead of competition
NextNext
6
Strong analytics to support Marketing campaigns
Special Blackberry
offer
Unique UMB menu
Unlimited Facebook for
the day
Special yahoo messenger
promo
RIGHT CHANNEL “Parallel intentional marketing campaign based on subscriber handset capabilities”
Understand Me!
Special Blackberry
offer
Unique UMB menu
Unlimited Facebook for
the day
Special yahoo messenger
promo
RIGHT CHANNEL “Parallel intentional marketing campaign based on subscriber handset capabilities”
Understand Me!
Campaign A
Campaign B
Campaign C
Campaign D
Right channel, right offer, right target of subs, in the right timeRight channel, right offer, right target of subs, in the right time Mobile Data Service AnalyticsMobile Data Service Analytics
Subscriber network and circle of
friends in running campaigns
Subscriber network and circle of
friends in running campaigns
7
Content operations
Business analysis and go-to-market
Device R&D
IT and Service Operations
Engagement model: Technical and Business
Motricity has a vast, global experiences across Data Services value chain
Partnering with Motricity to tap into data opportunity
� Cost Management
� Operational Excellence
� Distribution Excellence
� Monolithic XL brand
� Network modernization
Asset
Productivity
Operating
Profitability2
Top-Line
Growth1
3
Focus on operational excellence has helped improve EBITDA margin
3Q2010
52%
45%
2008
42%
2007
42%
2006
39%
2Q2010
52%52
50
51%
00
1Q2010
40
42
48
44
46
2009
EBITDA MarginEBITDA Margin Key examples of Operational ExcellenceKey examples of Operational Excellence
Distribution
• Major overhaul in Distribution
has strengthened control and
widen coverage
• At the same time reduced
Sales Commission cost
EBITDA margin (%)
Network
• Continues to explore more
efficient Network (e.g.
through modernization)
Employee
• Launched initiatives to
improve employee
productivity
A&P
• Strong monolithic XL brand
• At the same time, reduced
A&P spending
2006
2007
2009
Direct distribution• Limited reach
(35K retail outlets)• Lack of control• No clear
distribution strategy
Hybrid distribution
• Wider coverage• However, still lack
control of
distribution channels
Best-in-class
Distribution• Significant improvement
in product availability
• More efficient supply management
• Advocacy
• Performance-based selection (e.g. rationalized non-
performing dealers)• Exclusive cluster• Sales Academy
Low
High
HighControl
Re
ac
h
2006
2007
-2008
2009
We have achieved “best-in-class” in distribution
Asset
Productivity
Operating
Profitability2
Top-Line
Growth1
3
�Demand-based capacity
planning
�Balanced traffic
� Infrastructure sharing
�Managed service
12
Enhanced Enhanced Enhanced Enhanced CapExCapExCapExCapEx management for asset productivitymanagement for asset productivitymanagement for asset productivitymanagement for asset productivity
Optimized Network utilizationOptimized Network utilization Demand-based capacity planningDemand-based capacity planning
• Build capacity based on market demand
• Market understanding at segmented
“POC”
• Careful balancing of 2G and 3G
investments
• Minimize waste and inefficiencies
• Higher return on investment
0.0
1.0
2.0
3.0
4.0
5.0
0 2 4 6 8 10 12 14 16 18 20 22
Traffic profile by hour (Mn Minutes)
587600
277
Sept 2010 YTD
20092008
Continue to grow Asset (TowerCo) business
Continue to grow Asset (TowerCo) business
Asset business beyond “passive” infrastructure
Asset business beyond “passive” infrastructure
Passive infrastructure
• Rented ~5,000 towers in 2010
• 9 customers
• >5,000 tenancy
Active infrastructure
• Leased out Network capacity for domestic roaming
Maximize our asset utilization from non core
Revenues (in IDR Bn)
14
We have adopted “managed service” model in certain areasWe have adopted “managed service” model in certain areasWe have adopted “managed service” model in certain areasWe have adopted “managed service” model in certain areas
BenefitBenefit Potential impactPotential impact• Partnership in providing
operations for CRM & Billing
system for period 2010-2017• Expertise and high
quality service
• Save on Capital Expenditure
• Streamline business focus and operations for a more flexible organization
• TCO reduction
• Better customer experience
• High dependability• Partnership in Billing
Infrastructure as an “application
ready” platform for period 2010-
2014, including Disaster
Recovery Center
15
2010 Old Guidance2010 Old Guidance Current guidanceCurrent guidance
Cash out CAPEX
More than 20%
More than 50%
Approximately IDR 4.5-5 Tn, of which about 25 - 30% for data service, internally
funded
EBITDA Margin
Revenue growth
XL’s 2010 revised guidanceXL’s 2010 revised guidanceXL’s 2010 revised guidanceXL’s 2010 revised guidance
Expected more than 20%
Around 50%
Approximately IDR 4.5-5 Tn, of which about 25 - 30% for data service, internally
funded