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PT Perusahaan Listrik Negara (Persero

)
Investor Presentation

December 2011

Disclaimer
THIS DOCUMENT IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE.
This document and any related presentations have been prepared by Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara (the ―Company‖) solely for use at its presentation to prospective investors held in connection with the proposed offering of securities by the Company and may not be taken away, reproduced or redistributed to any other person. By attendi ng this presentation, you are agreeing to be bound by these restrictions. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The information contained in these materials (―Information‖) has been provided by the Company and has not been independently verified. 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1

Table of Contents
1. Company Overview

2. Credit Highlights
3. Industry Overview 4. Financial Highlights

2

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 (SOEs) PLN is the major provider of all public electricity and electricity infrastructure in Indonesia, including power generation, transmission, distribution 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 SOEs: the Government is obligated to provide a subsidy to PLN for the difference between the price charged for electricity and the cost to produce electricity

Key Business Segments
Generation
 Controls approximately 28,308 MW of installed generating capacity, over 85% of Indonesia’s total Owns and operates 1,261 generation plants Main purchaser of electricity from Independent Power Producers (IPPs)   

Transmission
Sole provider of power transmission in Indonesia Approximately 36,741 kmc of transmission lines 66,354 MVA of transmission transformer capacity  

Distribution
Sole distributor of electricity to end customers in Indonesia (1) Approximately 685,785 kmc of distribution lines and 36,430 MVA of transformer capacity Serving approximately 44 million customers

 

Electricity Sales
(In TWh)

Customer Base
(In millions)

4

(1) 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.

Corporate Structure
Ministry of State Owned Enterprises (MSOE) Ministry of Energy and Mineral Resources (MEMR) Ministry of Finance (MoF) Ministry of the Environment National Development Planning Authority (BAPPENAS)

100% Owned by GoI

PT PLN (Persero)
Oversight

PT Indonesia Power

PT Pembangkitan Jawa Bali
Electricity Generation

PT PLN Batam

PT PLN Tarakan
Regional Fully Integrated Electric Utility

Electricity Generation

Regional Fully Integrated Electric Utility

Majapahit Holding B.V. PT Indonesia Comnets Plus
Financial Institution Telecommunications for the Electricity Sector

PT Prima Layanan Nasional Enjiniring
Engineering and Construction Services

PT PLN Batubara

PT Pelayaran Bahtera Adhiguna
Shipping Activities

PT PLN Geothermal
Geothermal Energy Generation

Coal Supplier for PLN

Note: Excludes Joint Ventures.

5

Business Snapshot as of September 30, 2011
PLN distributes and sells electricity to several customer types. The electricity sold is either generated by PLN or purchased from IPPs.
Generation Composition Generating Capacity
Hydro Geo thermal

Transmission Network Detail
 500 kV interconnected transmission system with 5,092 kilometers-circuits  150 kV transmission system with 26,733 kilometers-circuits  4,916 kilometers-circuits of transmissions systems up to 70 kV

Distribution Network Detail
 Medium-voltage line distribution network of 278,277 kilometerscircuits
2%  Low-voltage line distribution network of 407,508 kilometer-circuits

2%

12% 27%

Oil

22%

22%
Gas

28% 31%
Co al

78%

 300,149 units of distribution 12% transformers with total capacity of  Transformer capacity of 66,354 MVA 26% approximately 36,430 MVA

Total: 134,774 GWh

Total: 28,308 MW

Electricity Transmitted and Distributed by Customer Type
(in TWh) (in millions)

Number of Customers by Type

6

Extensive Generation Network
PLN has an extensive generation portfolio with total installed capacity of approximately 28,308 MW across Indonesia.
Kalimantan Hydro Sumatera Hydro Geothermal 867 MW 0 MW Steamturbine Combined Cycle Gas-turbine 858 MW 874 MW 953 MW 601 MW 5,328 MW Diesel Others IPP TOTAL 32 MW Sulawesi 201 MW 60 MW 113 MW 969 MW 39 MW 45 MW 1,459 MW Hydro Geothermal Steamturbine Gas-turbine Diesel IPP TOTAL 220 MW 60 MW 55 MW 123 MW 567 MW 300 MW 1,325 MW Maluku Diesel TOTAL 198 MW 198 MW Total Hydro Geothermal Steamturbine Combined Cycle Gas-turbine Diesel Others IPP TOTAL 3,523 MW 439 MW 10,111 MW 7,704 MW 3,224 MW 3,268 MW 39 MW 4,943 MW 33,251 MW

Steamturbine
Combined Cycle Gas-turbine Diesel IPP TOTAL

1,175 MW

Maluku

Kalimantan
Sumatera Sulawesi

Papua

Java-Bali
Hydro Geo Steamturbine Combined Cycle Gas turbine Diesel IPP TOTAL 2,399 MW 375 MW 8,680 MW

Java-Bali

NTB

NTT
Papua

6,786 MW NTB 2,114 MW 120 MW 3,997 MW 24,471 MW Diesel Hydro TOTAL 141 MW 1 MW 142 MW

NTT Diesel Geothermal 53 MW 4 MW

Diesel Hydro TOTAL

266 MW 4 MW 270 MW

Hydro
TOTAL

1 MW
58 MW

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Corporate Milestones
• 2009: 3rd & 4th issuance of US$ Guaranteed 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 • 2010: Issuance of PLN XI and XII Bonds (Rp5.2 Trillion) and PLN IV and V Sukuk bonds (Rp0.8 Trillion)

• 1985: Enactment of Law No. 15/1985 of the Electricity Act gave PLN exclusive control over providing electricity in Indonesia

• 1992: PLN acquires funding from capital markets (1st domestic bond)

• 2004: PLN issues PLN VII Bonds (Rp1.5 Trillion)

• 1994: PLN established as a limited liability state-owned enterprise

2011 2010 2009 2006 2004 2007
• 2011: Presidential Regulation No. 8/2011: Increased Electricity Tariff, effective 1 July 2010 • 2007: 2nd issuance of US$ Guaranteed Note (US$1 billion), PLN IX Bonds (Rp2.7 Trillion) and PLN II Sukuk bonds (Rp0.3 Trillion)

1994 1992 1989 1985
• 1994-2004: PLN accesses the capital markets for bonds PLN I – PLN VI • 2006: PLN issues 1st US$ Guaranteed Note (US$1 billion), PLN VIII Bonds (Rp2.2 Trillion) and PLN I Syariah Bonds (Rp. 0.2 Trillion)

• 1989: Electricity supply business opened to the private sector
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2. Credit Highlights

Credit Highlights

1

Strong Government Support

2

Dominant Presence in the Indonesian Electricity Market

3

Benefit From a Fast-Growing Indonesian Electricity Market

4

Efficient Operations with Continuing Improvements

5

Stable Financial Profile

10

1

Strong Government Support
Subsidy Calculation
Costs covered by Subsidy
       Power purchases Fuel and lubricants Maintenance Personnel Administration Depreciation Financing costs

The Government of Indonesia’s active involvement emphasizes the importance of PLN’s role in ensuring stable electricity supply in Indonesia.
 Extended government loan maturities, converted overdue & penalties into equity in 1998  Channels loans in which GoI is the primary obligor to lenders (2-step loan)

Government Financial Assistance

 Law No. 19/2003: Obligation to provide subsidy to PLN  GoI injected equity to fund development plans: Rp3.9 trillion in 2009 and Rp2.3 trillion in 2010

 Irrevocable and unconditional guarantee on loans for FTP I  Presidential Regulation No.8/2011: GoI raised the electricity tariff effective July 2010
 In 2010, GoI approved a Rp7.5 trillion loan to finance a portion of PLN’s capex for certain projects

Close Involvement of Indonesian Government

 GoI is involved in almost every critical stage of PLN’s operations: budget setting, capital expenditure plans, IPP developments and primary energy supply  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

Plus…
8% PSO Margin based on Unit Cost in each voltage level

Minus…
Electricity sales

Timely & Adequate Subsidies

 MoF Regulation No. 111/PMK.02/2007 and its amendments: Blanket Subsidy  Continuous review ensuring adequate and timely subsidy payments  8% margin for 2010 and 2011 approved

Equals...
Electricity subsidy

Total Government Subsidy to PLN(1)
(Rp. in trillion)

Note:

(1) Government’s electricity subsidy as a result of audit by state auditor, except for 1H2011 which is the subsidy accrued for the first half of 2011.

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1

Strong Government Support – Clear Subsidy Mechanism

PLN’s Subsidy mechanism is based on the Ministry of Finance Regulation No.111/PMK.02/2007 and its amendments. It ensures certainty of the subsidy amount and a timely cost recovery. Example:
100% PSO Year 0(1) 100% 4Q Yr 0 100% 1Q Yr 1 100% 2Q Yr 1 100% 3Q Yr 1 100% 4Q Yr 1 100% 1Q Yr 2

Subsidy Payment
 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  Remainder will be received quarterly – based on an un-audited report of PLN’s actual costs  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

95% Dec

95% Jan

95% Feb

95% Mar

95% Apr

95% May

95% Jun

95% Jul

95% Aug

95% Sep

95% Oct

95% Nov

95% Dec

95% Jan

95% Feb

95% Mar

95% Apr

95% May

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Year 1
MOF Regulation No. 111/PMK.02/2007 and No. 162/PMK.02/2007

Year 2

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 which is submitted to the Ministry of Finance.

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1

Strong Government Support – Tariff Mechanism

Charges for electricity are based on electricity tariff rates which are set by the Government.

 

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 Presidential Regulation No. 8/2011: GoI raised the electricity tariff by an average of 10% with effect from July 1, 2011

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

Average selling price by each customer group
Rp per KWh Residential Industrial Business Public Composite Average selling price 2006 571 624 764 651 628 2007 572 621 773 645 629 2008 588 622 851 680 653 2009 589 644 891 686 670 2010 616 661 934 756 699 3Q2011 634 714 977 808 734

 

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2

Dominant Presence in the Indonesian Electricity Market

PLN is the only integrated electric utility company in Indonesia, controls the majority of generation capacity and is the sole transmission and distribution provider.

Generation
 28,308 MW of installed capacity out of 33,251 MW in Indonesia (1)  

Transmission
36,741 kmc of transmission lines 66,354 MVA of transmission transformer capacity  

Distribution
685,785 kmc of distribution lines 36,430 MVA of transformer capacity

IPPs 15% PLN 85% PLN 100% PLN 100%

 

PLN remains the country’s largest electricity producer and the only business entity in charge of transmitting and distributing electric power in Indonesia Under the New Electricity Law (No. 30/2009), SOEs, which includes PLN, have the first priority to decide whether to be the electricity supplier for the public needs of a specified area before such right can be awarded to anyone else – If PLN declines to undertake a public electricity supply business for a certain area, the Government or regional governments may offer this right to regional-owned companies, private enterprises or cooperatives  If 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

(1) As of June 30, 2011.

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3

Growing Indonesia Electricity Market Benefits PLN

Backed by strong macroeconomic indicators, energy demand in Indonesia is expected to grow significantly in the next few years.
Growing Electricity Demand
(in TWh)

Relatively Low Per Capita Electricity Consumption
(in MWh per Capita)

350 281 280 210 140 70 0 194 161 36 125 44 150 179 213 234 55 68

334 82

10.7 9.7 8.5 8.0 5.9

253

3.7

3.0

2.2 1.0 0.6 0.6 0.6 0.5

hi na Th ai la nd Vi et na m In do ne si Ph a i li pp in es

Java-Bali

Outside Java-Bali

Ta iw So an ut h Ko re a Si ng ap or e Ja pa H n on g K on g M al ay si a

 

With higher income levels, increasing urbanization and improving standard of living, electricity demand has increased Ongoing transformation from an agricultural to a manufacturingoriented economy has also played a particularly important role in the growth of demand for electricity

 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.
Source: PLN, EIU.

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In di a Pa ki st an

2011

2013

2015

2017

2019

C

4

Efficient Operations with Continuing Improvements
Transmission and Distribution Losses
1 2 3 4 5 6 7

PLN has continued to successfully improve its operating efficiency. Implementation of Efficiency Program
Improving Energy Mix  Reducing Oil Consumption Improving and Controlling T&D and Overheads Costs Safeguarding Collection Period Implementing Centralized Online Payment System & Cash Pooling Introducing Prepaid System Joint Procurement for Maintenance E Procurement for which manufacturer only eligible to bid in tender process

Capacity Factor

Customers per Employee

Source: PLN.

16

5

Stable Financial Profile
Total Debt / Adjusted EBITDA
(Rp. in trillion)

 Strong financial profile: – Growing interest coverage – Sustainable gearing – Healthy balance sheet  Growing EBITDA, which has been supported by the Government PSO Margin  Stable EBITDA margins
8.0x 6.0x

Revenue

5.8x

5.4

5.1x

4.5

4.9x 4.2

4.0x 2.0x 0.0x 2008
Debt / A djusted EB ITDA

2009

2010

Net Debt / A djusted EB ITDA

Adjusted EBITDA / Interest Expense
(Rp. in trillion)

Adjusted EBITDA

6.0x 4.7x 4.0x 2.4x 2.0x 3.9x

0.0x 2008 2009 2010

Note: 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.

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3. Industry Overview

Strong 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 Growth(1)
7% 5% 3% 1% -1% -3% 2008
(in TWh)

Indonesia Electricity Demand
350 281 280 210 140 70 0 194 161 36 125 150 179 213 44 253 234 55 68 334 82

2009

2010

2011E

2012E

2013E Global

2014E

2015E

2011

2013 Java-Bali

2015

2017

2019

Indonesia

Outside Java-Bali

Indonesia is one of the largest economies in Southeast Asia, both in terms of domestic value-added GDP and population – Indonesia’s real GDP is expected to increase 6-7% per year between 2010 and 2015, according to the IMF Indonesia is one of the fastest growing economies among the G20 countries

   

Projected electricity demand growth of 9.3% per annum on average between 2011 and 2019 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 PLN expects to benefit from the growth in electricity demand given its dominant presence in the Indonesian electricity market

Resilient economy driven by strong domestic consumption –

Experienced better than expected economic outlook with ratings upgraded in 2011 – currently one notch below investment grade

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Source: IMF. (1) Percent change, constant prices.

Electrification Ratio Demonstrates Room for Growth
Ample room for growth in electricity sector based on current Electrification Rate(1) in Indonesia.
 Low electrification ratio of 66.5% (as of end 2010) 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 end-2019 – The role of IPPs in providing domestic power will also become increasingly important as the domestic electricity consumption increases

Electrification Rate for Asian Developing Countries (2009)
100.0% 99.7% 99.4% 99.4% 99.3% 97.6% 89.7% 76.6% 67.0% 66.5% 66.3% 62.4%

2019 target: c. 90%

Singapore

Brunei

China

Malaysia

Thailand

Vietnam

Philippines

Sri Lanka

Mongolia

Indonesia

India

Pakistan

20

Source: IEA, World Energy Outlook 2010. (1) Percentage of population with electricity access.

Fast-Track Programs – Overview
1st Program
 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 1 

2nd Program
Presidential Regulation No. 4/2010, subsequently amended by Presidential Regulation No. 48/2011: Mandated PLN to procure 9,522 MW of renewable energy, gas and coal fired plants – Major projects include Indramayu (Coal, 1,000 MW), and Upper Cisokan (Hydro, 1,000 MW) Fulfill increasing electricity demand in Indonesia beyond completion of FTP I MoF Regulation No. 139/2011: Government provides business feasibility guarantees to IPPs in respect of PLNs obligations to IPPs for the purchase of electricity under PPAs IPPs to build more than half of the 9,522 MW
Hydro Gas 13% 1%

Overview of Fast Track Program I

Overview of Fast Track Program II

 

36 EPC Contracts signed

36 EPC contracts have been signed: – 10 locations in Java-Bali (7.5 GW) – 25 locations outside Java-Bali (2.4 GW)
– 1 contract has been terminated (14 MW) Total additional capacity of ~9.9 GW

Project Construction

 

Most plants expected to be in operation by 2012 Substantially all plants are expected to be built and in operation by 2014 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

Program Description

Combined gas-steam 9%

Geothermal 42%

Coal-fired steam 35%

Coal Supply

Project Construction

Have started construction of coal-fired electricity generating plants in four locations with aggregate capacity of 154 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

Transmission System

Transmission development projects amounting to approximately Rp6,303bn plus US$150mm are being developed as part of FTP I

Financing

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Rationale for Fast Track Program – Fuel Mix Improvement
Fuel Cost Comparison
(Rp/kWh) (GWh)

Production by Fuel Source

Operating Expenses Breakdown
(Rp. in trillion) (Rp. in trillion)

Breakdown of Fuel and Lubricant Costs

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.
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Fast Track I Funding and Development Schedule
Generation Plant Funding
USD Portion
Committed 5% Signed 95%

COD Schedule
(in MW)

Rp Portion
Committed 10% Signed 90%

4000 3,598 408 3200 1,497 2400 3,487

Total: US$5,175 million

Total: Rp 21,596 billion

1600

3,190 1,990

1,363 313 880 220

Fast Track I Plants
800

By Type
Coal 100%

By Location
Outside Java-Bali 24.5%

300 0
Java-Bali 75.5%

300 300 2010 2011 Java-Bali 2012

1,050 660 2013 2014

300 2009

Outside Java-Bali

Total: 9.9 GW

Funding

 Generation: 90% local and 95% foreign funding has been signed; the remaining has been committed  Transmission: 100% funding has been secured

23

IPP Program

Background

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

Current IPPs in Operation and Under Development
In Operation – 26 IPPs
(4,943 MW)

Under Development – 52 IPPs
(4,633 MW)

By type…

In Operation

4,943 MW in operation or about 15% of total national capacity – Supplied by 26 IPPs
Hydro 7%

Gas 1 5%

M arine Fuel Oil 1 %

Hydro 1 0% Geo thermal 1 7%

Under Development

52 IPPs totaling 4,633 MW are currently under development – In August 2010, the Government reviewed the price for 25 PPAs with a total capacity of 1,913 MW

Geo thermal 1 4%

Co al 62%

Co al 73%

By location…
 Agreements with IPPs comprises: – 26 contracts with respect to electricity generating plants that have already commenced operations – 52 agreements with respect to electricity generating plants that are under development Coal-fired IPP PPAs are for periods of approximately 30 years while gas IPP PPAs are for periods of approximately 20 years Agreement to purchase 80% of energy base availability
B atam Island 4% Kalimantan 1 % Sulawesi 6% Sumatra 8%

Kalimantan 3% B atam Island 2% Sulawesi 1% 1

B ali 1 2%

Other 1 %

Java 37%

PPAs

Java 81 %

Sumatra 32%

24

4. Financial Highlights

Financial Metrics
Revenue
(Rp. in trillion) (Rp. in trillion)

EBIT

Adjusted EBITDA
(Rp. in trillion) (Rp. in trillion)

Cash Flow from Operations

Note: 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.

26

Credit Ratios
Total Debt / Adjusted EBITDA
8.0x 6.0x 4.0x
2.0x 5.0x

Adjusted EBITDA / Interest Expense
4.7x 3.9x

5.8x

5.4

5.1x

4.0x

4.5

4.9x 4.2
3.0x 2.4x

2.0x 0.0x 2008
Debt / Adjusted EBITDA

1.0x 0.0x

2009

2010

2008

2009

2010

Net Debt / Adjusted EBITDA

Total Debt / Book Capitalization

Total Debt / Equity

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Capital Expenditure Plan
2011E Planned Capital Expenditures by Type
(Rp. in billion)

2012E Planned Capital Expenditures by Type

Distribution 19%

Distribution 24%

Generation 47%

Generation 45%

Transmission 34%

Transmission 31%

Total: Rp 58,501 billions

Total: Rp 42,061 billions

A significant portion of PLN’s planned capital expenditures are for generation projects, with the remainder for transmission and distribution projects.

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Debt Profile As of September 30, 2011
Total Debt Summary(1)
(Rp. in million)

Debt Breakdown by Type

Type Two-Step Loans Government Loans Lease Liability Bank Loans – Related to Fast Track Program Bank Loans – Not Related to Fast Track Program Medium Term Notes Bonds Payable Electricity Purchase Payable Total
* Represents debt Guaranteed by the Government of Indonesia.

Amount 26,509,759* 2,150,111* 15,552,412 42,233,445* 15,424,253 2,500,000 50,072,986 5,990,482 160,433,448

Debt Breakdown by Tenor

Debt Breakdown by Currency

29

Source: Company filings. (1) Unamortized discounts allocated pro-rata according to the total debt amounts before discount. (2) Others include AUD and GBP.

Credit Highlights

1

Strong Government Support

2

Dominant Presence in the Indonesian Electricity Market

3

Benefit From a Fast-Growing Indonesian Electricity Market

4

Efficient Operations with Continuing Improvements

5

Stable Financial Profile

30

Peer Ratios
EBITDA Margins
PT PLN 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 10.0% 2008 60.0x 50.0x 40.0x 30.0x 20.0x 10.0x 0.0x
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Operating Margin
120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% 2008 2009 2010 2.2% 6.8% 8.2% PT PLN China Resources Power Cheung Kong Infrastructure CLP Holdings Limited Hongkong Electric Tata Power Company KEPCO TNB PSALM Pertamina

China Resources Power Cheung Kong Infrastructure CLP Holdings Limited Hongkong Electric Tata Power Company KEPCO

16.0%
2009

17.0% 2010

TNB
PSALM Pertamina PT PLN China Resources Power Cheung Kong Infrastructure CLP Holdings Limited Tata Power Company KEPCO TNB PSALM

EBITDA/Gross Interest

Debt/LTM EBITDA
50 45 40 35 30 25 20 15 10 5 0 5.1x 2008 2009 5.2x 2010 PT PLN China Resources Power Cheung Kong Infrastructure CLP Holdings Limited Hongkong Electric Tata Power Company KEPCO TNB PSALM Pertamina

2.4x 2008

3.9x 2009

4.7x 2010

Pertamina

Peer Ratios
40 35 30 25 20 15 10 5 0 -5 -10 -15 4.5x 4.4x

Net Debt/LTM EBITDA

PT PLN China Resources Power Cheung Kong Infrastructure CLP Holdings Limited Hongkong Electric Tata Power Company KEPCO TNB PSALM 120.0% 100.0% 80.0% 60.0% 40.0% 42.5% 20.0% 0.0%

Debt/Capital
PT PLN China Resources Power Cheung Kong Infrastructure CLP Holdings Limited Hongkong Electric Tata Power Company KEPCO 44.2% 47.1% TNB PSALM Pertamina 2008 2009 2010 FFO/Debt PT PLN China Resources Power Cheung Kong Infrastructure CLP Holdings Limited Hongkong Electric Tata Power Company KEPCO TNB 5.3% 2008 2009 17.2% 2010 PSALM Pertamina

2008

2009

2010

Pertamina

Adjusted Debt/EBITDAR
60.0x PT PLN 50.0x 40.0x China Resources Power Cheung Kong Infrastructure CLP Holdings Limited Hongkong Electric Tata Power Company KEPCO 0.45 0.4 0.35 0.3 0.25 20.0x 10.0x 0.0x
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FFO/Debt

30.0x

0.2 0.15 0.1 0.05 0

TNB
5.8x 2008 5.1x 2009 4.9x 2010 PSALM Pertamina