Investor presentation v14.ppt

Transcription

1 PT PT EXCELCOMINDO EXCELCOMINDO PRATAMA PRATAMA Tbk. Tbk. (XL) (XL) 1Q09 1Q09 Corporate Corporate Presentation Presentation May May

2 Agenda Indonesia macro situation Recap of our strategy and 2008 results Continuing strong growth in Q

3 Limited impact of global crisis on Indonesian economy Stimulus package of IDR 2.9Tn may result in 2.6 Mn job creation and lower May number Inflation may hit lower end of central bank 09 forecast of 5-7 % by year end 15% Unemployment Rate % YoY Inflation 10% 5% 0% 8.0 Nov Dec Jan Feb Mar Apr Nov 08 Dec 09 Jan 09 Feb 09 Mar Apr 09 % Stickiness in base lending rate despite systematic reduction in central bank benchmark rate BI and Base Lending Rates Foreign exchange rate against the US Dollar Source: Indonesian Central Bank, BPS (National Statistics Bureau), Bloomberg Nov 08 Dec 09 Jan 09 Feb 09 Mar 09 Apr Base Lending Rate BI Rate FX Rate 1 12,500 12,000 11,500 11,000 10,500 10,000 9,500 Peaceful election resulted in renewed optimism over political stability Foreign Exchange and Jakarta Stock Exchange Rate F X R ate JSX Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 JSX 1,800 1,600 1,400 1,200 1,000 2

4 Innovative "minute factory" strategy implemented in '08 Offer the Indonesian consumer a unique proposition Compete on region by region basis Increase organizational productivity "Better value through comparable quality and aggressive pricing" "Win by region" "Fast, eager, lean" 3

5 Creating outstanding growth and value Growing revenue profitably Operational Efficiency Capital Productivity VALUE CREATION AND RETURN 1 Simple: Realizing elasticity RPM RPM MoU YoY 2008 Growth Tot OG Mins: 54.9 bn 705% RPM Rp % 2 Less simple: Growing revenue RPM RPM MoU YoY 2008 Growth Revenue: Rp 12.2 tn 45% Ending Subs: 26.0 mn 68% 3 Challenging: Growing revenue profitably Rp 1, RPM CPM EBITDA % YoY 2008 Growth EBITDA: Rp 5.1 tn 46% Margin: 42.2% Outgrew industry revenue growth rate by 3.5x and EBITDA growth rate by 9.2x Source: Company data, Company calculation based on public filings 4

6 Effective improvement in our cost position We have reduced our cost per minute... and our CAPEX per capacity unit Cash cost/total minute vs total MoU/sub/mth ( ) Gross fixed assets / Total Erlang offered (IDR / Erlang, Indexed to 2006) Cash CPM (US ) % Operator Operator XL Bharti Q1 09 Total MoU/sub/mth Note: Operator 2 reported Minutes assuming Total Minutes (incl. incoming and Outgoing) Source: Company Data, Public Filings 5

7 Growth trajectory continues in Q1 09 Revenue Average daily subscriber with events 4 IDR Bn 3,000 2,000 1,000 2, , Q % EBITDA 2, , Q1 09 Non-voice Voice Other 1 Mn SWE ,6 Q % 10,0 Q1 09 Average daily MOU IDR Bn 1,300 1,200 4% 2 Including tower rental expense 3 MoU Mn % 215 1,100 1,000 1,134 Q ,176 1,222 1,113 Q Excluding tower rental expense Q1 08 Q1 09 Growth resulting from a well executed strategy 1. Other revenue includes interconnection, roaming, leased lines, and towers 2. Growth excluding tower expenses 3. Number of leased towers went from 275 in Q1 08 to 1519 in Q1 2009, a 453% increase 4. A subscriber who used and reloaded within 2 months from activation of starter pack Source: Company data 6

8 Executing the next stage of our strategy in : "Building Volume" 2009: "Driving Value" 1 Brand / Product Affordable voice Fun & exciting in voice & beyond 2 Subscriber / Traffic MoU & gross adds Quality subs & customer value 3 Distribution Reach & availability Advocacy and control 4 Network Coverage & capacity Quality 5 Operating mindset Fast & lean: driving scale Fast & lean: driving productivity 7

9 Driving XL brand preference beyond affordable voice First Mover on Pricing Driving Call Duration with per Call Benefits Driving Call Frequency with Bucket Pricing Solidifying image as best value across products, beyond voice Brand Strength Percent of Potential Users 80% 60% 40% 59% 39% 44% 30% 29% Considerred for Purchase Preferred for Purchase 20% 0% GSM operator 1 15% 12% 8% 10% 10% XL GSM operator 2 CDMA operator 1 CDMA operator 2 Source: TNS 8

10 Getting known for being fun and exciting Strong image of creative, fun and exciting......supported by attractive ads and promotions Percentage respondents Percentage respondents 50% 40% Creative Fun and Exciting 80% 60% Attractive Ads A lot of exciting promo tariff 30% 40% 20% 10% 20% 0% 0% Simpati GSM 1 XL GSM IM3 2 CDMA Flexi 1 CDMA Esia 2 XL GSM Simpati 1 GSM IM32 CDMA Flexi1 CDMA Esia2 Source: TNS 9

11 Growing high quality subscriber base Lower total subs... Total Subscribers -4%... but growing what counts... Daily Outgoing Revenue 14% Dec 08 Mar 09 Prepaid RGB 1 2%... through specific channel actions Tighter supply of starter packs to better match supply to demand End-to-end, granular visibility and management of stock level in the channel Greater focus on indicators of quality subs growth Dec 08 Mar 09 Dec 08 Mar 09 Unique Subs with Reloads 14% Enforcing channel discipline in cross area shipment Dec 08 Mar RGB = Revenue Generating Base, number of unique subscribers during one month, creating one or more revenue generating events Source: Company data 10

12 Creating more value from existing subscriber base Increase Revenue Focus on driving minutes of use Focus on driving revenue from installed network Reduce Churn Broad churn reduction initiatives Tailored churn reduction programs Optimize Yield No specific yield programs Targeted yield management programs 11

13 Driving channel advocacy with broad reach established Reach and availability established Number of XL retail outlets 1 644% 250,000 Driving better channel advocacy and control Outlets as advocates for XL Advocacy 33,600 Q1 07 Q1 09 Share of SP display in outlets in Jabotabek 2 Availability Control 35% 29% 21% 15% XL products are always available Visibility into channel performance XL Operator 1 Operator 2 Others 1. Outlets holding XL reload chips 2. Internal survey of 1291 outlets in Jabotabek, April 2009 Note: SP = Starter Pack Source: Company data 12

14 Evolving network focus from coverage to capacity and quality Coverage Capacity Quality % population coverage Q1 09 Erlangs Offered (Indexed to 2005) 2,000 1,500 1, Q1 09 Answer Success Rate (indexed to '06) Q1 09 Number of BTS 20,000 10, Q1 09 Utilization (%) Optimal range Q1 09 % Call Success Rate (Q4 08) XL Operator coverage estimated Source: Company data, Public filings 13

15 Executing the next stage of our strategy in : "Building Volume" 2009: "Driving Value" 1 Brand / Product Affordable voice Fun & exciting in voice & beyond 2 Subscriber / Traffic MoU & gross adds Quality subs & customer value 3 Distribution Reach & availability Advocacy and control 4 Network Coverage & capacity Quality 5 Operating mindset Fast & lean: driving scale Fast & lean: driving productivity 14

16 Appendix

17 XL 1 st Quarter 2009 Performance 1Q Q 2008 YoY Growth Revenue- Net of discount Rp 2,902 bn Rp 2,623 bn 11% EBITDA Rp 1,113 bn Rp 1,134 bn -2% Profit/(Loss) After Tax Rp (306) bn Rp 320 bn n/a # Total Subscriber 24.9 mn 18.4 mn 35% # Prepaid Subs RGB* 21.3 mn 15.9 mn 34% Total BTS 17,232 12,290 40% Source: Company data 16