PT Perusahaan Gas Negara (Persero) Tbk Class B · IDX:PGAS
PT Perusahaan Gas Negara (Persero) Tbk Class B — Perusahaan Gas Negara — Morgan Stanley Asia Pacific Summit 2008
32 slides from PT Perusahaan Gas Negara (Persero) Tbk Class B's conference presentation, Nov 12, 2008
Slide 1: Perusahaan Gas Negara
Perusahaan Gas Negara Morgan Stanley Asia Pacific Summit November 12 12‐‐13, 2008
Slide 2: Table of Content
Table of Content Recent Update Background g & Overview Operational Review and Performance Financial Review and Performance Project and Capex Outlook and Future Plan
Slide 3: Recent Update
¢ Gas Negara WN Recent Update
Slide 4: Recent Update
RECENT UPDATE AGMS appointed i d new management team (June (J 2008) Completion of SSWJ Pipelines (August 2008) Major GSA with PLN (April & September 2008) Gas Supply HOA from Ketapang Block PSC (April 2008) Major LNG supply MOA with Total E&P (July 2008) 1
Slide 5: 9M-2008 Results (YoY Comparison)
9M‐‐2008 RESULTS (YOY COMPARISON) 9M Consolidated Revenues Rp9 02 T Rp9.02 47 2% 47.2% Consolidated EBITDA Rp4 61 T Rp4.61 63 8% 63.8% Consolidated Net Profit Rp2.04 T 56.8% Transmission Flow (MMScfd) 747 1.8% Distribution Flow ((MMScfd)) 566 40.4% 2
Slide 6: SSWJ in Operation August 2008
SSWJ IN OPERATION AUGUST 2008 The 1035 km length of gas transmission pipeline has been in operations since August 2008 with capacity of 970 MMScfd ConocoPhillips Gas Plant P t i Gas Pertamina G Plant Operated Pagardewa Compressor 3
Slide 7: Background & Overview
WN Background & Overview ¢ Gas Negara
Slide 8: Overview
OVERVIEW Established in 1859 as a private Dutch company Firma LL.II Einthoven n Co Gravenhage Established as Perusahaan Gas Negara g in 1965 Licensed under the Oil and Gas Law Number 22 Year 2001 Went IPO in 2003 S k li 5:1 Stock‐split 5 1 iin A August 2008 Stock price IDR 2175, Mkt. Cap. IDR 49.95
Slide 9: Corporate Structure
CORPORATE STRUCTURE PT Perusahaan Gas Negara (Persero) Tbk Distribution Transmission SBU I SBU Transmission (Western Part of Java and South Sumatera) SSWJ SBU II PT TGI (Eastern Part of Java) Grissik-Duri and Grissik-Singapore SBU III (Northern Part of Sumatera) 5
Slide 10: Our Shareholders
OUR SHAREHOLDERS As of September 30, 2008 Shareholders Shares IDR Percentage The Government of The Republic of Indonesia Series A Dwiwarna Share 1 100 Series B Shares , , , 12,534,716,524 1,253,471,652,400 , , , , Total Government Shares 12,534,716,525 1,253,471,652,500 54.58% Public Series B Shares
Slide 11: Indonesian Gas Market Overview
INDONESIAN GAS MARKET OVERVIEW Indonesia has proven gas reserves 112.47 TCF Underserved Domestic Gas Demand (Geographical Constraints) INDONESIA GAS RESERVES (STATUS AS OF : JANUARY 1, 2008) 1.27 52.59 8.15 24.06 Indonesian Gas Reserves as of 1 Jan 2007 24.21 3.18 28.0 4.16 13.65 5.08 PROVEN : 112.4
Slide 12: Potential Shift from Oil to Gas
POTENTIAL SHIFT FROM OIL TO GAS Competitive gas price relative to other sources of energy Demand for gas exceeds supply Relative Energy Price (as of November 1, 2008) PGN Gas Price Vs HSD Price Gasoline (non‐subsidized) 17.3 US$/MMBtu Kerosene (non‐subsidized) 17.3 40 HSD (non‐subsidized) 15.8 35 30
Slide 13: Operational Review & Performance
O Operational ti l Review R i & Performance P f
Slide 14: Our Business Model
OUR BUSINESS MODEL We have strong market position in gas distribution and transmission Our transmission network allows for greater control over distribution volume PGN Gas Sales Agreement • Industry Distribution (Sales ( Price)) • Commercial G Purchase Gas P h SSWJ • Retail Upstream • Chevron U PGN
Slide 15: Our Transmission Network
OUR TRANSMISSION NETWORK Completion of the SSWJ Gas Transmission Pipeline enables PGN to operate transmission pipelines with a total length of 2109 km PLN – Medan Grissik – Singapore Capacity = 80 mmscfd Capacity = 364 mmscfd Medan Grissik – Pagardewa – Labuhan Maringgai – Muara Bekasi – Rawamaju (S
Slide 16: Our Transmission Business
OUR TRANSMISSION BUSINESS G Transportation Agreement (GTA) Gas (G ) 1,000 110% 84% 84% 86% 78% 90% 69% – Long-term contract (USD) 750 70% – Minimum ship-or-pay ship or pay volumes 50% – Tarif regulated based on 12% IRR and 80% utilization m m s c fd rate 500 30% – Grissik-Duri US$ 0.62/ MMBtu 681 73
Slide 17: Our Distribution Network
OUR DISTRIBUTION NETWORK • Extensive distribution network covering 9 major cities in Indonesia with capacity of 1005 MMScfd (56% utilization rate) • The network and facilities are managed by three SBUs – West Java (SBU I), East Java (SBU II) and Sumatra (SBU III) Medan – SBU III Capacity = 46 mmscfd
Slide 18: Our Distribution Business
OUR DISTRIBUTION BUSINESS Distribution – Sale of Gas to End User 700 56% 56% 60% 54% • Gas Sales Agreements (GSA) 47% 600 46% 50% – Minimum pay volumes – Price in US$ & IDR 500 40% 400 m m s c fd Selling Price (per MMBtu) 30% – Industry / Commercial US$ 5.49 300 566 – Household US$ 6.62 20% 200 422
Slide 19: Strong Distribution Customer Base
STRONG DISTRIBUTION CUSTOMER BASE • Industrial customers continue to dominate PGN’s customer base and drive PGN’s distribution business growth growth. As of June 30, 30 2008, 2008 sales volume of industrial customers was 544 MMScfd or equal to 98.7% of PGN’s sales. H1 2007 Industrial Customer Consum
Slide 20: Our Market Share
OUR MARKET SHARE H1 2008 Transmission H1 2008 Distribution PGN 87% Pertagas 13% PGN 93% Manggala 1% Bayu Buana 1% Rabana 1% Sadikun 1% EHK 2% Banten Inti Gasindo 1% 15
Slide 21: Financial Review & Performance
Fi Financial i lRReview i &PPerformance f
Slide 22: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue Trend 5,000 EBITDA and EBIT Trend 51% 4,500 47% 10 000 10,000 44% 46% 8,802 9,021 4,000 9,000 39% 1,208 1,083 3,500 8,000 Rp billions 6,632 3,000 7,000 6,128 In Rp. billioons 6 000 6,000 , 5,434 1,101 2 500 2,500 827 In R 4,609 5,000 1,154 4,094 2,000 4,000 7,594 7,938 3
Slide 23: Income Statement
INCOME STATEMENT (billion rupiah) FX Gain/Loss Loss Loss IDR 192 bio IDR 148 bio 9,021 Up to Q3 2007 Up to Q3 2008 47.2% Forex as of : ‐ September 30, 2007 USD 1 = IDR 9,137 ‐ September 30, 2007 JPY 1 = IDR 79.35 ‐ December 31, 2007 USD 1 = IDR 9,419 ‐ December 31, 2007 JPY 1 = IDR 83.06 6,128 ‐ Sep
Slide 24: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET (billion rupiah) Dec 31, Sept 30, Sept 30, % 2007 2007 2008 (30 Sept S t 2007 vs 30 Sept S t 2008) Current Assets 3,715 3,907 4,935 26 Non Current Assets 16,633 16,359 16,994 4 T t l Assets Total A t 20 348 20,348 20 266 20,266 21 929 21,929 8 Current Liabilities 3,169 3,9
Slide 25: Debt Composition as of Sep 30, 2008
DEBT COMPOSITION AS OF Sep 30, 200 2008 8 Long‐term debt amounting to USD 1.056 billion Mostly long dated/maturity loans from Developmental Banks Floating (33.12%) JPY (33.02%) USD (66.98%) Fixed (66.88%) 19
Slide 26: Project & Capex
¢ Gas Negara WN Project & CAPEX
Slide 27: West Java Distribution Expansion
WEST JAVA DISTRIBUTION EXPANSION The West Java Distribution Expansion Project with 463km main pipelines commenced in 2005. The project aims to distribute the gas from SSWJ and is expected to be fully completed in 2009 • PGN is expanding its distribution network in Jakarta, Bekasi, Cikampek, Bogor, B
Slide 28: West Java Distribution Progress & Key Milestones
WEST JAVA DISTRIBUTION PROGRESS & KEY MILESTONES Aug 2007 Sept 2007 Dec 2007 Mar & Jun Oct 2008 – Pipeline Distribution mainline 2008 Completion of World Bank Distribution mainlines for Distribution for Bitung-Batuceper Di t ib ti Distribution P k Packages Rawamaju-Kalimalang-Kedep- mainline for Bit
Slide 29: Projected Capex
PROJECTED CAPEX (Million USD) Project 2008E Transmission 191 Distribution 54 LNG 0.9 Totall 2 9 245.9 (Million USD) Source off Fund d 2008E PGN 106.9 JBIC & World Bank 139 22
Slide 30: Outlook & Future Plan
O tl k & Future Outlook F t Pl Plan
Slide 31: Future Projects
FUTURE PROJECTS PILOT PROJECT CNG PONDOK UNGU LNG RECEIVING TERMINAL DURI – MEDAN TRANSMISSION PIPELINE Integrated CBM Development with Pipeline Transmission 23
Slide 32: Thank You
Thank You PT Perusahaan Gas Negara (Persero) Tbk Investor Relations Jl. K H Zainul Arifin No. 20, Jakarta 11140 Indonesia d i Ph: 62 21 6334838 Fax: 62 21 6331632 www.pgn.co.id
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