PT Perusahaan Gas Negara (Persero) Tbk

Investor Summit Presentation

November 2012 Update

Disclaimer:
The information contained in our presentation is intended solely for your personal
reference. In addition, such information contains projections and forwardlooking
statements that reflect the Companys current views with respect to future events and
financial performance. These views are based on assumptions subject to various risk. No
assurance can be given that further events will occur, that projections will be achieved, or
that the Companys assumptions are correct. Actual results may differ materially from
those projected.

2 2

OurBusinessModel
Dominantplayerindomesticnaturalgas
transmissionanddistribution

Transporter

GTA

Offtaker

Distributor

GSA

Industrial,
Commercial,
Residential

Producer

3 3

ShareholdingStructure

43.03%
Public

56.96%
Governmentof
RepublicIndonesia

*)Total:24,241,508,196shares
PublicShareincludes1,850,000sharesofTreasuryStock

4 4

SubsidiariesandAffiliates

PT
Transportasi
Gas
Indonesia

60%

PT PGAS
Telekomunika
si Nusantara

100%

PT PGAS
Solution

100%

PT
Nusantara
Regas

40%

PT Saka
Energi
Indonesia

99%

PT Gagas
Energi
Indonesia

PT PGN
LNG
Indonesia

99%

99%

40%

60%

Transasia
PipelineCompany

40%

PetronasInternationalCorporation
Ltd.(35%)
ConocoIndonesiaHoldingLtd.(35%)
SPCIndoPipelineCo.Ltd.(15%)
TalismanTransgasindoLtd.(15%)

Pertamina

60%

60%

40%

PGN

PGN
5 5

KeyStakeholders
Minister of State Own Enterprise
To act as Government of Republic of Indonesia shareholder proxy.
KEMENTERIAN
BADANUSAHAMILIKNEGARA

Minister of Energy and Mineral Resources

To formulate national, implementation and technical policies in
energy and mineral resources sector.

Downstream Oil and Gas Regulator

To regulate and to supervise downstream oil and gas activities
(processing, transportation, storage and trading).

6 6

RelatedRegulations
Minister of Energy and Mineral Resources Decree No. 19/2009

Set the structure of natural gas trading, transmission and distribution

business and licensing.

Provides special rights and licensing for dedicated downstream.
Set pricing mechanism for piped natural gas:

o
o
o

Residential regulated by BPH Migas.

Special users determined by Minister of Energy.
General users determined by the companies.

Minister of Energy and Mineral Resources Decree No. 3/2010

Upstream has a mandate to serve domestic demand by 25% of natural gas

production.
Domestic gas utilization priorities for national oil and gas production,
fertilizer, electricity and industrial uses.
Exemption for existing Gas Sales & Purchase Agreements, Heads of
Agreement, Memoranda of Understanding or negotiations in progress.

7 7

DemandforNaturalGas2012
2,411

No Subsidy of Fuel for the Industries

TotalDemand:5,284 MMSCFD

Subsidies for industries revoked in 2005.

Pricing and Efficiencies

Significant price and efficiencies benefits by converting to
natural gas, as well as environmental concerns.
995

[MMSCFD]

813

Conversion of Power Plants

394

Pentup demand from the conversion of existing dual fired

285

270

power plants pending availability of gas.

116

Demand from the industries

Require natural gas to compete in the era of Free Trade
Agreement.
Source:MinistryofIndustryRepublicofIndonesia&PLN

8 8

StrategytoFulfillDemand
Obtain access to new gas supplies

Actively seeking new gas supplies, starting from the ones

located in the proximity of existing infrastructure.

Seek to obtain more allocation from the imposed domestic
market obligations to new production and contracts, but will
require new infrastructure to be built.

Develop existing and build new infrastructure

Expand existing distribution and transmission capacity.

Plan for intermode gas transportation such as CNG and LNG.
Aim for nonconventional sources

Plan and anticipate the nonconventional sources such as Coal

Bed Methane.

9 9

OpportunityinPriceAdvantage
ComparisonBetweenHSDvs NaturalGas

LPG3Kg
(Subsidized)

40
35
30
25
20

NaturalGas

HSDUnsubsidizedPrice
NaturalGasPGN'sPrice

LPG12Kg
(Subsidized)

PGNAverage
SellingPrice

8.45
10.38
14.04

[USD/MMBTU]

LPG50Kg

17.71

LPGBulk

17.89

MFO

22.21

15

MDF/IDO(Diesel)

27.79

10

HSD(Diesel)

29.26

5
0

Gasoline88Ron

31.51

Kerosene

30.68
Note:
FuelpricePertamina asof1stOctober2012
ExchangerateUSD1=IDR 9,200

USD/MMBtu

1010

DistributionPricingScheme
CostofGas

Minister of Energy and Mineral Resources Decree No. 19

Year 2009

Transport&
Distribution
Costs

Gas
SellingPrice
InternalCost

Allows pricing for general users to be determined by the

Companies.
General users are nonsubsidized industries and power plants.

Pricing Considerations

Demand and Supply Dynamics

Affordability
Reasonable Margin

Intended to stimulate more supplies to meet the growing

demands
Implementation

Margin/
Spread

PGN has taken the effort to communicate and educate the

end users market on the merit of new pricing flexibility.
Implement new pricing scheme with regionalized and
differentiated pricing on nationwide basis from 1 April 2010.

1111

TransmissionPipelineFacilitiesand
DistributionArea
PLN Medan

Panaran St.

Duri

KALIMANTAN

Pagardewa CompressorSt.

Labuhan Maringgai St.

Grissik ReceivingSt.

Legend:
StrategicBusinessUnit(SBU)I
StrategicBusinessUnit(SBU)II
StrategicBusinessUnit(SBU)III
SouthSumatera WestJavaTransmission
Pipeline(SSWJ)
Grissik Duri transmissionpipeline
Grissik Singaporetransmissionpipeline

Pagardewa St.

Terbanggi Besar St.

BojonegaraSt.

Muara Bekasi St.

Wampu - Belawan transmission pipeline

1212

SourcesofGas
Pertamina EP
FieldP.Susu
PertiwiNusantaraResources
(gasexSalamanderEnergy)

CorridorPSC

Inti Daya Latu Prima

(gasexJambiMerang)
MedcoE&PLematang
Lematang PSC

MedcoE&PIndonesia
South&CentralSumatraPSC
Pertamina EP
RegionSumatera
Indonesia

PHEWMO
WestMaduraOffshorePSC

Pertamina TACEllipse
Jatirarangon PSC

Pertamina EP
RegionJawa

GagasEnergi
(gasexPHEWMO)

Lapindo Brantas,Inc
Brantas PSC

HuskyOil
MaduraStraitPSC

BBG&WNE,IKD,
Sadikun(gasexTSB)
MaduraOffshorePSC

1313

WeServeAllSegments
COMMERCIALS
&SME

INDUSTRIES AND
POWERPLANTS

2.7%
oftotalvolumes

97%

1,658

oftotalvolumes

Customers

1,245
Customers

HOUSEHOLDS

<1%
oftotalvolumes

86,965
Customers

*)asof9M2012

1414

15

Diversified Industrial Customer

43%

Domestic industrial consumption 9M-2012

was 777 MMScfd or 97% of PGNs sales

15%
11%
8%
6%

5%

4%

4%

3%
1%

Power
Plant

Chemical

Ceramic

Food

Fabricated
Metal

Others

Paper

BasicMetal

Textile

Cement

1515

GrowingOperationalPerformance
878

845

824

844

836
801
795
792

(MMSCFD)

(MMSCFD)

785

767

2009

2010

2011

9M11

9M12

Transmission

2009

2010

2011

9M11

9M12

Distribution
1616

17

Interim Consolidated Statements of

Comprehensive Income 9M 2012

InUSD Mio

9M2011

9M2012

1,635.6

1,827.8

12

Cost ofRevenues

619.1

746.9

21

OperatingIncome

698.2

768.8

10

EBITDA

846.1

904.3

NetIncome

533.8

621.3

16

Revenues

1717

18

Interim Consolidated Statements of

Financial Position
InUSDMio
CurrentAssets
NonCurrentAssets

TotalAssets
CurrentLiabilities
NonCurrentLiabilities
TotalEquity

TotalLiabilitiesAndShareholdersEquity

Key Ratios

Jan1,2011/Dec
31,2010

Dec31,2011

30Sep,2012

1,542
1,998

1,507
1,893

1,726
1,886

3,540

3,400

3,612

449
1,440
1,651

274
1,247
1,879

330
1,202
2,080

3,540

3,400

3,612

9M 11

9M 12

0.58

0.49

EBITDA/Interestexpense(x)

38.7

54.9

ReturnonInvestment(%)

24.9

25.1

DebttoEquityRatio(x)
Netdebt/Equity(x)

1818

DebtComposition
asof9M2012

Longtermdebtamountingto
USD867 million
Mostlylongdated/maturityloans
fromDevelopmentalBanks

USD
27.8%

JPY
72.2%
Float
18%

Fixed
82%

EffectiveCostof
DebtofAround

1.9%
1919

RecentUpdates
Event

Detail of Event

October 17, 2012

Amendmentandrestatement
agreementwithHoegh andRekayasa
Indonesia

Strengthening the sinergy between PGN and Hoegh Rekayasa Industri to

follow up the relocation of FSRF in Medan to Lampung

August 30, 2012

Price increase of gas supply from major
suppliers

Application of two phases price increase for upstream supply

Starting September 1, 2012 :
ConocoPhillips increased its selling price from $ 1.85/mmbtu to $ 4.36/mmbtu
Pertamina increased its selling price from $ 2.2/mmtu to $ 4.42/mmbtu
Starting April 1, 2013 :
ConocoPhillips selling price will go up from $ 4.36/mmtu to $ 5.44/mmbtu
Pertaminas selling price will go up from $ 4.42/mmbtu to $ 5.33/mmbtu

June 28, 2012

Price adjustment of PGNs gas selling
price to customers

PGN will increase its selling price by 50% to customers in West Java
The increase will be implemented in stages: 35% starting September 2012
and 15% starting April 2013

2020

PlanforNewLNGInfrastructure

(Revitalisation)

Arun
Block
Mahakam
Block

Tangguh
Block
Donggi
Senoro
Block

(planned)

(PGNInvolvement)
(PGNInvolvement)

Masela
Block
(planned)
ExistingLNGLiquefactionPlant

Existingtransmissionpipelines(PGNinvolvement)

PlannedLNGLiquefactionPlant

ExistingLNGReceivingTerminal

PlannedLNGReceivingTerminal

2121

FloatingLNGTerminalOverview

2222

LNGReceivingTerminals

Location
Capacity(MTPA)
Customers
Owner
Scope

West Java

Lampung

JakartaBay

LabuhanMaringgai

3MTPA

23 MTPA
Power plants,industry

PGN(40%)Pertamina (60%)

PGN

FSRU, jetty, subseaandoverlandpipelines

2323

FSRUProject WestJava

2424

FSRUProjects RecentDevelopment
West Java:

Gas has been source with Mahakam PSC to the ammount of

11.75 MT of LNG supply over 11 years and backtoback HoA with

PLN as the offtaker.
FSRU Nusantara Regas1 has been positioning at Jakarta Bay and
operating starting June 2012.
LNG supplies is coming from Bontang.

Lampung:

Advance survey and Environment Impact Analysis Document.

Target of project completion in 2014.
Principal permit from local authority for project location.
Amendment and restatement agreement with Hoegh on October
17, 2012.

2525

Thank You
Contact:
Investor Relations
PT Perusahaan Gas Negara (Persero) Tbk
Jl. K H Zainul Arifin No. 20, Jakarta-11140,
Indonesia
Ph: +62 21 6334838
http://www.pgn.co.id

Fax: +62 21 6331632

26