1
PT EXCELCOMINDO PRATAMA Tbk. (XL)
Q1 2007 Results PresentationApril 2007
PT EXCELCOMINDO PRATAMA Tbk. (XL)
Q1 2007 Results PresentationApril 2007
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Accomplishments
XL - OverviewIndonesian Market
Financial performance
XL Focus
3
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Brief overview
* Through Indocel Holding Sdn Bhd which is 100% owned by TM** Through PT Rajawali Corpora
*** Will be acquired by TMIL, estimated to be completed in Q2 07
16.0%
TM*
59.6%
16.8%
Rajawali**
7.4%
Public
16.8%
7.4%
Rajawali**
Khazanah
16.8%AIF***
7.4%
16.0%
0.2 %
������������� ��� ������������������� ������������������ �� ���� �����������������������������
� Started commercial operation in October 1996� Third largest mobile operator in Indonesia� GSM 900/1800/3G services� Only operator with own extensive backbone in Java,
Sumatra, Sulawesi and Kalimantan� Listed on JSX since September 2005. Current market
capitalization of c. US$1.7bn� Telekom Malaysia (“TM”) is the majority shareholder
with a 59.6% stake� Khazanah Nasional is the second largest shareholder
with a 16.8% stake
Shareholding structure as of 31 March 2007
4
Accomplishments
XL - Overview
Indonesian Market
Financial performance
XL Focus
5
916 1,066 2,2213,6696,519
11,400
18,915
31,997
51,688
68,500
88,000
105,000
121,000
136,000
�� �������� ������� �����
Industry subscriber growth
Source: Various research reports and XL’s estimates
Market Share of Subscribers
� Indonesian mobile market still offers significant growth potential withestimated penetration rate of only 28% as at 31 December 2006
� Prepaid dominates the market with about 96% share� Three GSM operators (Telkomsel 51%*, Indosat 24%*, XL 14% as at
31 December 2006) dominate the mobile industry
� Competition also comes from FWA and CDMA operators which offer limited coverage at lower price
� New foreign operators (Maxis and Hutchison) enter the 3G business and may increase competition landscape. Hutch has launched its service in Mar 07, Maxis not yet.
* Published Report** Consists of Telkom Flexi, Mobile 8, Bakrie Telecom, StarOne, & Natrindo
51%
24%
14%
11%
XL
Others
Telkomsel
Indosat *
*
**
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� The new interconnection regulation (cost based vs revenue share) has been implemented since 1 January 2007.
� Government plans to tender USO projects in 2007.
� Regulator plans to set minimum floor price for voice service. The Government has issued the Minister Decree (KM No. 12/02/2006), but has not issued the detailed operational regulation.
� Government has issued the Ministerial Decree that regulates maximum retail tariff for leased lines. The Decree is expected to be effective in 2H 2007.
� Industry is waiting for the Government action to issue a new IDD license this year and BWA license in the near future.
�� �������� ������� �������������� �
Regulations:
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Accomplishments
XL - Overview
Indonesian Market
Financial performance
XL Focus
8
2,9083,743
6,802
9,1417,973
9,653
447
248
387
176
48
36
2003 2004 2005 2006 1Q06 1Q07
Prepaid Postpaid
8,221
2,944
3,791
6,979
9,52810,100
2,6923,323
4,301
6,466
1,2871,763
2003 2004 2005 2006 Q1-06 Q1-07
1,4491,626
1,735
2,554
572759
2003 2004 2005 2006 Q1-06 Q1-07
� �� ��������������������� !
EBITDA (Rp bn)
Subscribers (‘000)
03 - 06 CAGR = 21%
03 - 06 CAGR = 48%
33%
23%
1,4912,357
4,324
6,2794,886
6,851
9811,020
2003 2004 2005 2006 Q1-06 Q1-07
BTS 2G BTS 3G
7,871
1,4912,357
4,3244,886
7,260
Network build up
Number of BTS
Gross revenue (Rp bn)
03 - 06 CAGR = 34%
03 - 06 CAGR = 70%
37%
61%
9
230
570
1,040
1,988
3,284
1,7871,261
5,2725,758
2,113
2003 2004 2005 2006 Q1-07
Java, Bali, Nusra Outside Java, Bali, Nusra
1,491
2,357
4,324
7,260
7,871
" �� ��#�$��������� � ������ ��� ��%���
&'��(����Network Coverage as of March 2007
2003 2004 2005 2006Q1-07Q1-06 Q1-07Customers (m) 2.9 3.8 7.0 9.5 8.2 10.1 BTS 1,491 2,357 4,324 7,260 4,886 7,871
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Accomplishments
XL - Overview
Indonesian Market
Financial performance
XL Focus
11
���)����
�� Drive top line growth, at least in line with market Drive top line growth, at least in line with market revenue growth, while managing efficiency and revenue growth, while managing efficiency and productivity in order to drastically improve productivity in order to drastically improve RoARoA / / RoERoE
�� Aggressive marketing and communicationAggressive marketing and communication
�� Significant expansion of distribution networkSignificant expansion of distribution network
�� Expand network coverage outside Java to strengthen Expand network coverage outside Java to strengthen market positionmarket position
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Accomplishments
XL - Overview
Indonesian Market
Financial performanceXL Focus
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37% 39% 43% 46% 44% 47%
63% 61% 57% 56% 53%
54%
2003 2004 2005 2006 Q1 06 Q1 07
OG Minutes IC Minutes
1,7401,560
1,150
8801,120
820
2003 2004 2005 2006 Q1 06 Q1 07
0.8 1.01.5
2.9
0.50.9
2003 2004 2005 2006 Q1-06 Q1-07
Outgoing MoU (bn) Outgoing MoU per subs (min)
Ratio incoming and outgoing MoU Voice revenue per minute (Rp)
*�������+�����
30
2326
29
21
29
2003 2004 2005 2006 Q1 06 Q1 07
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,��(��- ������. �������
In billion Rupiah*
2005 2006 Growth 2006 2007 GrowthGross Revenue 4,301 6,466 50% 1,287 1,763 37%Discount and COGS 1,242 1,784 44% 316 390 23%Net Revenue 3,059 4,682 53% 971 1,373 41%OPEX 1,324 2,128 61% 399 614 54%EBITDA 1,735 2,554 47% 572 759 33%EBITDA margin 40% 39% N/A 44% 43% N/ADepreciation & Amortization 1,165 1,526 31% 338 411 22%EBIT 570 1,028 80% 234 348 49%Other (Expense) / Income (883) (25) -97% 267 (108) N/AEBT (313) 1,002 N/A 501 240 -52%Net (Loss) / Income (224) 652 N/A 355 176 -50%*Any difference comes from rounding
One year ended31 December
Three months ended31 March
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$����)�� ��� �&��������������. �������
2.42.1
2.9
2.1
2005 2006 Q1-06 Q1-07
4.3
6.15.6
7.1
2005 2006 Q1-06 Q1-07
Total Debt/LTM EBITDA (x) EBITDA/Interest Expense (x) Total Debt/Equity (x)
1.1 1.2 1.3 1.3
2005 2006 Q1-06 Q1-07
Cash Flow (Rp bn)
Balance Sheet (Rp bn)
In billion Rupiah
2005 2006 2006 2007Cash flow from operating activities 1,833 2,861 313 583 Cash flow used in investing activities (3,133) (4,518) (1,313) (1,172) Free cash flow (1,300) (1,657) (1,000) (589)
One year ended31 December
Three months ended31 March
In billion Rupiah2005 2006 2006 2007
Total Liabilities 5,725 8,355 7,027 8,999 Equity 3,629 4,281 3,984 4,457 Total Liabilities and Equity/Assets 9,354 12,637 11,010 13,456
31 December 31 March
Moody'sStandard & Poor's Stable
Foreign Currency Outlook
Ba3 PositiveBB-
Fitch RatingsPefindo idAA- Stable
AA(idn) Stable
Local Currency Outlook
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� /�� �����#
Further strengthen Java and expand in non Java
Strengthen Company / brand image
Will grow by at least 30%Revenue
Will be comparable or slightly higher than 2006EBITDA margin
Will likely be around 2006 levelBlended ARPU
USD 700 mn, to add more than 3,000 BTSCapex plan
Coverage
Marketing
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