Asia Pacific Equity Research

19 March 2010

India Ahead of the Pack

Contents

India
Economics Bharat Iyer
AC

S&P raises outlook on India to stable (Gunjan Gulati) (91-22) 6157-3600

bharat.x.iyer@jpmorgan.com

Sector Research J.P. Morgan India Private Limited

Cosmetics & Personal Care, Vineet Sharma, CFA / Latika Chopra, CFA
Asia Consumer: HPC Competition Heats Up in Asia
Wireless Services, Nishit Jasani
India Telecom: Tele Talk: 3G auctions to stretch balance sheets amid ongoing
price wars; Remain cautious

J.P. Morgan Daily Valuations

See page 9 for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision.
 Asia Pacific Equity Research
18 March 2010

Asia Consumer
HPC Competition Heats Up in Asia

In the wake of heightened competitive activity in the Household/Personal Care Asia ex Consumer
space in India & Indonesia, JPM Consumer Team hosted an investor call to AC
Vineet Sharma, CFA
discuss the implications and strategies of the key global players. Key takeaways: (852) 2800-8523
• Why is P&G getting aggressive? We believe P&G is strategically trying vineet.k.sharma@jpmorgan.com
to expand its presence in emerging markets in order to achieve its stated J.P. Morgan Securities (Asia Pacific) Limited
target of acquiring one billion new consumers over the next five years.
India
P&G would need to capture a wider audience in mass segment to do so AC
and hence is trying to introduce low price points (like Tide Naturals Latika Chopra, CFA
(91-22) 6157-3584
detergent in India) and reducing prices across shampoos and skin creams latika.chopra@jpmorgan.com
in Indonesia. We believe this is not a short term volume grab strategy for
J.P. Morgan India Private Limited
P&G but is more consistent with its long term strategy of gaining share in
emerging markets. Indonesia
AC
• Unilever is more vulnerable in India and Indonesia. While India and Stevanus Juanda
Indonesia together account for low single digit share of P&G’s profits, for (62-21) 5291 8574
stevanus.x.juanda@jpmorgan.com
Unilever these countries account for 12% of EBIT. Hence these markets
are much more important to Unilever which will continue to defend its PT J.P. Morgan Securities Indonesia

market share in response to any competitive challenge and in the process US HPC
risk its margins in these markets. John Faucher
• Emerging modern retailers and urbanization erode distribution (1-212) 622-6443
john.faucher@jpmorgan.com
advantage: The emergence of modern retailers and rapid urbanization
J.P. Morgan Securities Inc.
will erode the competitive advantage of Unilever’s distribution. A new
product launching will need only be offered to a couple of key retailers to Europe HPC
have sizable overnight presence in the market: in Indonesia 35% of the Celine Pannuti, CFA
FMCG market is sold through modern channels. A new product will only (44-20) 7325-9276
need to be launched in first and second tier cities as the population of celine.pannuti@jpmorgan.com

these cities encompasses 50% of the population. J.P. Morgan Securities Ltd.

• Unilever guiding for price decline in 1H10; P&G lowers long term
EPS growth target. P&G has indicated preference for topline growth over
margins and even Unilever in India has mentioned defending market share
as a top priority. With consumer opportunity lying in emerging markets,
the market is likely to be increasingly competitive.
• Maintain UW on Hindustan Unilever and Unilever Indonesia. We
would expect lower price growth (high inflation further hurting price/mix
growth), high competitive spends and rising input costs to weigh on
margins for Unilever in India and Indonesia in coming quarters.
Replay for the Call through 3/24: 800-944-1519 (US); +1- 203-369-3420 (outside US);
Passcode: 6827
Table 1: Revenue and EBIT contribution of emerging markets for global HPC majors
Company Revenue Contribution Operating Profit Contribution
Beiersdorf 38% 17%
L'Oreal 33% 30%
Unilever 47% 42%
P&G 27% NA
Colgate 57% 61%
Source: Company, J.P. Morgan estimates.

See page 9 for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision.
Vineet Sharma, CFA Asia Pacific Equity Research
(852) 2800-8523 18 March 2010
vineet.k.sharma@jpmorgan.com
Latika Chopra, CFA
(91-22) 6157-3584
latika.chopra@jpmorgan.com

Figure 1: Price Cuts undertaken in detergent powder segment recently in India

Over the past 2-3 months we
have seen, in particular, P&G
upping the ante here. What
started as P&G’s foray into
discount segment which
accounts for over 70% of
laundry market in India with
launch of low price Tide
Naturals, has now led to a
series of price reductions by
both Unilever and P&G. While
Unilever has cut prices for its
Rin brand by 30%, P&G has
reduced prices for Tide by 20-
45%.

Source: Companies and J.P.Morgan

Indonesia Price War Figure 2: Price Cuts undertaken in shampoo and skin care segment recently in Indonesia
Started in sachet shampoo and
then extended into bottled
shampoo followed by skin care –
the most profitable segment.
Price reductions ranged between
20-40%.

Source: Companies

3
 Asia Pacific Equity Research
18 March 2010

India Telecom
Tele Talk: 3G auctions to stretch balance sheets amid
ongoing price wars; Remain cautious Volume 5

“Tele Talk” is our product that looks at regular newsflow in the Indian India
Telecom sector. Wireless Services
• 3G spectrum auctions: Current focus is on the 3G auctions where Nishit Jasani
AC

interested entities have to submit their applications by end of this week (91-22) 6157-3578
(19 March) – auctions are scheduled for 9th April. We expect intense nishit.x.jasani@jpmorgan.com

competition for the 3 available spectrum slots as 3 incumbents (Bharti, J.P. Morgan India Private Limited
Vodafone, RCOM) potentially compete with Idea, Tata Teleservices, Gourav Vijayvergiya
Aircel. New operators like Etisalat and Uninor are not likely to bid for 3G (91-22) 6157-3278
in our view. We expect the auction price for pan-India spectrum to gourav.x.vijayvergiya@jpmorgan.com
exceed Rs55Bn (vs. base price of Rs35Bn). BWA spectrum auction J.P. Morgan India Private Limited
would be an equally competitive affair with TCOM, Qualcomm, Orange Tim Storey
in the fray and RCOM, Google said to be interested. (852) 2800-8563
• Tata DoCoMo slashes rates again – competition extends to non-voice: tim.storey@jpmorgan.com

The company has started offering daily packs at effective rates of Rs0.17 / J.P. Morgan Securities (Asia Pacific) Limited
Rs0.40 / Rs0.47 per minute for on-net / off-net / STD. The company has
also slashed international calling rates (more details on page 2). More Price Performance: Absolute
importantly, the company has also launched very competitive pricing on In % 3M 6M 12M
non-voice plans – GPRS, music and cricket alerts. Tata Docomo has Bharti (7.9) (30.9) 4.5
also launched 'Rollover Plan' where enterprise customers pay by month Idea 9.8 (16.2) 42.9
RCOM (7.2) (48.4) 2.0
and enjoy the facility of carrying forward their unused free talk time and Sensex 3.4 4.5 97.1
SMS for a period of three months (for 8 such 3-month cycles). Source: Bloomberg.
• Tata-Quippo is buying 2535 towers from TTML for Rs 13Bn (EV of
Rs 5.2mn per tower) making it India’s largest independent tower player. Share price returns relative to Sensex
In % 3M 6M 12M
• Bharti-Zain deal: Bharti is in exclusive talks with Zain until 25 March -
Bharti (11.3) (35.4) (92.6)
media reports indicate that management have not faced any hurdles so far Idea 6.4 (20.7) (54.2)
in due diligence for Zain Africa and Bharti is confident of closing the deal. RCOM (10.6) (52.9) (95.1)
According to media reports (Livemint), Bharti has already issued a term Source: Bloomberg.
sheet to raise US$8.5Bn debt at 176 bps to 179 bps over Libor.
Wireless subscriber base and monthly net-adds (MM)

Subscriber base (L)

Net monthly adds (R)
18 18 18
600 15 14 15 21.0
540 15 12 12 15 17 18.0
480 10 10 11 12 13 15.0
420 9 9 9 9 10 12.0
360 9.0
300 6.0
240 3.0
180 0.0
Oct-08

Dec-08

Oct-09

Dec-09
Jun-08
Jul-08
Aug-08
Sep-08

Jan-09
Feb-09
Mar-09
Apr-09

Jun-09
Jul-09
Aug-09
Sep-09

Jan-10
May-08

Nov-08

May-09

Nov-09

Source: COAI, AUSPI and J.P. Morgan, Note: Wireless subs do not include BSNL’s CDMA-FWLL subs (~4.6 MM)

See page 9 for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision.
Nishit Jasani Asia Pacific Equity Research
(91-22) 6157-3578 18 March 2010
nishit.x.jasani@jpmorgan.com

Tariffs
Tata DoCoMo launches new “Daily plans” for prepaid
Table 2: Tata DoCoMo’s daily plans for prepaid customers
Plans Details
Talkathon 30 local minutes @ Rs.5 on Tata DOCOMO Network
30 local minutes @Rs.12 across Networks
30 local/National minutes @Rs.14
10 local minutes @Rs.5
Night Birds 60 Free Local Night minutes on Tata DOCOMO Network
World Calling 10 minutes to USA/Canada @ Rs.20
5 minutes to USA/Canada @ Rs.10
3 minutes to Gulf @ Rs.20
GPRS 10MB Free Browsing @Rs.5 only
Entertainment 15 minutes FREE music @Rs.5
Cricket alerts @ Rs.5/day
Source: company

Table 3: Comparison with other operators’ offerings

Tata DoCoMo daily plan Bharti Airtel Vodafone RCOM simply reliance Idea
0.28paise per sec (on-net) 1paise per second (on-net) 1paise per second (on-net) 1 p per sec/ Rs 0.5 per min/
Local Tariffs 0.67paise per sec (off-net) 1.2paise per second (off-net) 1.2 paise per second (off-net) Rs 1 per 3 min/ 1p per second
1paise per second (on-net) 1paise per second (on-net) 1 p per sec/ Rs 0.5 per min/
STD Tariffs 0.78 paise per sec 1.2paise per second (off-net) 1.2 paise per second (off-net) Rs 1 per 3 min/ 1p per second
International Rs 2 per min USA/Canada Rs 6.4 per min USA/Canada Rs 6 per min USA/Canada Rs 2.5 per min USA/Canada 11p per sec USA/Canada
Calls (Rs/min) Rs 6.7 per min to Gulf Rs 9.2 per min Gulf Rs 11 per min to Gulf Rs 8.5 per min to Gulf 18p per sec to Gulf
One time
charge & Till 12 midnight on the
Validity same day Rs 90-100 for lifetime validity Rs 90-100 for lifetime validity Rs 48 for lifetime validity Rs 40 for 12 months
Source: Companies' websites

Tata DoCoMo offers unused talktime rollover for 3 months

Tata Docomo, the GSM brand of Tata Teleservices Ltd, launched a tariff plan for its
enterprise customers, which carries unused free talk time and SMS forward for a
period of three months. Under the 'Rollover Plan' (RO Plan), customers pay by
month and enjoy the facility of carrying forward their unused free talk time and SMS
for a period of three months, TTSL said in a statement. Under the offer, there are
four variants of plans available -- RO 500, RO 799, RO 1,000 and RO 1,099. For
example, under RO 1099, the user is offered 1.5 lakh seconds of free local calls and
72,000 seconds of free STD calls per month. The customers can carry forward the
accumulated unused free talk time and SMS each month for a period of three
consecutive months. The roll over benefit will be applicable for 8 consecutive cycles
with each cycle comprising of 3 months. (ET)

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Nishit Jasani Asia Pacific Equity Research
(91-22) 6157-3578 18 March 2010
nishit.x.jasani@jpmorgan.com

India Wireless
TTML to sell telecom towers to Tata Quippo for Rs 13.18 Bn
Tata Teleservices Maharashtra (TTML), the listed subsidiary of telecom services
operator Tata Teleservices, has agreed to sell its telecom towers for an enterprise
value of Rs 13,180 mn to Wireless-TT Info Services (WTTIL), popularly known as
Tata Quippo. As part of the deal, TTML (offers services in Mumbai, Maharashtra
and Goa circles) will give its 2,535 towers and will receive net cash of about Rs 9 Bn
from the transaction. WTTIL will now have over 38,000 towers – making it the
largest independent tower company in India.

Each of TTML’s towers has been valued at Rs 5.2mn, close to the Rs 4.8mn per
tower paid by GTL Infrastructure for acquiring Aircel Cellular’s towers earlier this
year. The acquisition will strengthen Tata-Quippo’s current tenancy ratio, which is in
excess of 2 (ET).

Qualcomm applies to bid broadband spectrum

Qualcomm has filed an application with the Indian government to bid for upcoming
Broadband Wireless Access (BWA) spectrum in India. Qualcomm and its partners
intend to demonstrate TD-LTE technology with the goal of creating a TD-LTE
infrastructure in concert with 3G (Third Generation) networks and devices. It will
also enable a broadband experience for consumers within India and while roaming
globally. However, the move by Qualcomm has not gone down well with some
Wimax players. "Qualcomm belongs to the anti-Wimax lobby, by bidding in for
Wimax spectrum they are trying to spoil the case of the Wimax players by
unnecessarily hiking the base price," one of the players said. (ET)

Bharti very confident of completing Zain deal

Bharti Enterprises’s Vice-Chairman and MD, Rajan Mittal said the company is
confident of closing its proposed acquisition of Zain’s African stake though the time
frame within which the deal will be completed remains vague as of now. The two
companies are in talks till March 25. Bharti has offered to pay $9 billion to Zain
towards acquiring the latter’s stake in African market. (ET)

Bharti issues term sheet for debt of US$8.5Bn

Bharti Airtel has issued a term sheet to banks to raise up to $8.5 billion in offshore
loans to fund the deal, banking sources said. The six-year offshore facility has four
tranches and carries a blended average life of 4.75 years, with a margin ranging from
176 bps to 179 bps over Libor, the sources said. A banker familiar with the deal said
that Bharti opted to drop the onshore tranche of its loan due to the strong response
from offshore lenders. By raising the facility all in US dollars, the borrower also
minimises execution risks and the time needed to complete the financing, the same
banker said. Barclays Capital, Citigroup, Standard Chartered Bank and State Bank of
India are expected to underwrite larger amounts than other banks. Banks have until
Wednesday to respond to the borrower, while documentation is expected to be
completed by Friday (ET)

BSNL board approves Pitroda panel reports on 30% stake sale

The board of state-owned telco BSNL on Wednesday gave an in-principle approval
to the Sam Pitroda committee report that called for a 30% stake sale in the PSU, but

6
Nishit Jasani Asia Pacific Equity Research
(91-22) 6157-3578 18 March 2010
nishit.x.jasani@jpmorgan.com

said that the government should take the final call on the quantum of stake to be
divested. This marks the third instance of the BSNL board clearing the stake sale.
Since 2007, BSNL has twice approved the proposal to divest 10% stake in the
company but has been unable to go ahead with the same due to stiff opposition from
its employee unions. (ET)

Uninor to raise Rs 9,400 Cr debt

Telecom operator Uninor, which offers its services in eight of the 22 circles in the
country, will soon start the exercise of raising debt to the tune of Rs 9,400 crore. The
company expects to launch its services across India soon and that would require an
investment of Rs 15,500 crore. Its immediate plans are to launch in the Mumbai,
Maharashtra, Gujarat and Goa circles, which the company hopes to achieve in the
second quarter of the calendar year. They are looking for foreign and Indian banks,
both public and private sector, for project financing. Uninor is currently operating on
a bridge loan of Rs 5,000 crore which will be repaid after project financing.
(Business Standard)

Bharti Airtel integrates all telecom, satellite infrastructure to save costs

In a bid to achieve operational and cost efficiency on the network side, Bharti Airtel
has decided to integrate its entire telecom and satellite infrastructure under a single
unit to be called Network Services Group (NSG). The creation of this umbrella group
will also mean that Bharti's equipment and managed services deals to vendors for the
entire range of network. Until now, Bharti Airtel managed its mobile, fixed line and
broadband; enterprise, domestic and international long distance; and satellite
networks separately. Therefore, network deals were also given separately. For
example, Nokia Siemens and Ericsson manage its mobile network while the fixed
line network is being managed by Alcatel-Lucent. All this could change for future
deals allowing Airtel to leverage on synergies and avoid overlapping. Bharti
currently has 1.2 lakh mobile towers and an optical fibre network of 118, 337 route
km. (Business Line)

Regulatory Bytes
DoT announces 3G Details
Table 4: India Telecom: 3G Auction Time Table
Activity Date
Final date for Applications 19-Mar-10
Publication of ownership details of Applicants 23-Mar-10
Bidder Ownership Compliance Certificate 26-Mar-10
Pre-qualification of Bidders 30-Mar-10
Mock Auction 5th - 6th April, 2010
Start of the 3G Auction 9-Apr-10
Start of the BWA Auction 2 days from the day of close of the 3G,Auction
Payment of the successful bid amount Within 10 calendar days of close of relevant auctions
Source: DoT

7
Nishit Jasani Asia Pacific Equity Research
(91-22) 6157-3578 18 March 2010
nishit.x.jasani@jpmorgan.com

Table 5: India Telecom: Details of 3G and BWA blocks to be auctioned – Circle wise (excluding
one block reserved for MTNL/BSNL)
Service area Category 3G No. of blocks BWA No. of blocks of
Reserve of 2x5 MHz Reserve 20 MHz
price available for price (Rs. available for
(Rs. Cr) 3G auction Cr) BWA auction
Delhi Metro 320 3 160 2
Mumbai Metro 320 3 160 2
Kolkata Metro 120 3 60 2
Maharashtra A 320 3 160 2
Gujarat A 320 3 160 2
Andhra Pradesh A 320 3 160 2
Karnataka A 320 3 160 2
Tamil Nadu A 320 3 160 2
Kerala B 120 3 60 2
Punjab B 120 4 60 2
Haryana B 120 3 60 2
Uttar Pradesh (E) B 120 3 60 2
Uttar Pradesh (W) B 120 3 60 2
Rajasthan B 120 3 60 2
Madhya Pradesh B 120 3 60 2
West Bengal B 120 4 60 2
Himachal Pradesh C 30 4 15 2
Bihar C 30 4 15 2
Orissa C 30 3 15 2
Assam C 30 3 15 2
North East C 30 3 15 2
Jammu & Kashmir C 30 4 15 2
Total Reserve Price 3,500 10,830 1,750 3,500
Source: DoT (Chennai Included in Tamil Nadu)

MNP to be delayed by at least 3 months

Mobile number portability is likely to be delayed by at least another three months till
July as a system is not yet in place to roll out the service. This was decided at an
internal meeting of the Department of Telecom (DoT) today, highly placed sources
said, adding the service may see light of the day earliest by July this year. (ET)

Vodafone wants higher 3G levies on Tata Tele, RCOM

Vodafone Essar has now alleged that Reliance Communications and Tata
Teleservices have already launched third generation (3G) services and, therefore,
should be charged higher levies that are applicable to 3G operators. In the case of
CDMA operators, both second generation (2G) and 3G services are offered using the
same airwaves or spectrum. (ET)

Telcos oppose Trai move to charge for new numbers

Telecom operators, including BSNL and MTNL, have opposed the Trai move to
charge a price for allocating new numbers, saying an additional levy is totally
unwarranted. Sectoral regulator Trai’s main reason behind suggesting a price on
allocating new numbers is that the numbers are not being efficiently utilized and it
feels a price can make the operators not to dole out numbers to lure more customers.
Telcos argue that new block of numbers are alloted only after demonstrating 60 and
80% utilisation stringently for mobile and fixed line respectively. (ET)

8
Bharat Iyer Asia Pacific Equity Research
(91-22) 6157-3600 19 March 2010
bharat.x.iyer@jpmorgan.com

Analyst Certification:
The research analyst who is primarily responsible for this research and whose name is listed first on the front cover certifies (or in a case
where multiple research analysts are primarily responsible for this research, the research analyst named first in each group on the front
cover or named within the document individually certifies, with respect to each security or issuer that the research analyst covered in this
research) that: (1) all of the views expressed in this research accurately reflect his or her personal views about any and all of the subject
securities or issuers; and (2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the
specific recommendations or views expressed by the research analyst in this research.
Important Disclosures

• Lead or Co-manager: JPMSI or its affiliates acted as lead or co-manager in a public offering of equity and/or debt securities for
Unilever Indonesia Tbk within the past 12 months.
• Beneficial Ownership (1% or more): JPMSI or its affiliates beneficially own 1% or more of a class of common equity securities of
Hindustan Unilever Limited, Unilever Indonesia Tbk.
• Client of the Firm: Hindustan Unilever Limited is or was in the past 12 months a client of JPMSI. Unilever Indonesia Tbk is or was
in the past 12 months a client of JPMSI; during the past 12 months, JPMSI provided to the company investment banking services.
• Investment Banking (past 12 months): JPMSI or its affiliates received in the past 12 months compensation for investment banking
services from Unilever Indonesia Tbk.
• Investment Banking (next 3 months): JPMSI or its affiliates expect to receive, or intend to seek, compensation for investment
banking services in the next three months from Unilever Indonesia Tbk.
• Non-Investment Banking Compensation: An affiliate of JPMSI has received compensation in the past 12 months for products or
services other than investment banking from Unilever Indonesia Tbk.
• MSCI: The MSCI sourced information is the exclusive property of Morgan Stanley Capital International Inc. (MSCI). Without prior
written permission of MSCI, this information and any other MSCI intellectual property may not be reproduced, redisseminated or
used to create any financial products, including any indices. This information is provided on an 'as is' basis. The user assumes the
entire risk of any use made of this information. MSCI, its affiliates and any third party involved in, or related to, computing or
compiling the information hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness
for a particular purpose with respect to any of this information. Without limiting any of the foregoing, in no event shall MSCI, any of
its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages
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Important Disclosures for Equity Research Compendium Reports: Important disclosures, including price charts for all companies
under coverage for at least one year, are available through the search function on J.P. Morgan’s website
https://mm.jpmorgan.com/disclosures/company or by calling this U.S. toll-free number (1-800-477-0406)

Hindustan Unilever Limited (HLL.BO) Price Chart

480
Date Rating Share Price Price Target
UW Rs225 (Rs) (Rs)
420 20-Feb-07 N 205.10 220.00
N Rs275 UW Rs220
01-Nov-07 N 207.60 230.00
360
02-Mar-08 N 227.35 250.00
N Rs220 N Rs230 N Rs250 UW Rs230 UW Rs210
300 28-Apr-08 N 249.75 275.00
Price(Rs) 240 04-Mar-09 UW 241.50 230.00
12-May-09 UW 226.05 220.00
180 30-Jul-09 UW 268.05 225.00
16-Mar-10 UW 225.55 210.00
120

60

0
Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan
06 07 07 07 07 08 08 08 08 09 09 09 09 10

Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends.
Break in coverage Mar 03, 2004 - Jun 07, 2004. This chart shows J.P. Morgan's continuing coverage of this stock; the
current analyst may or may not have covered it over the entire period.
J.P. Morgan ratings: OW = Overweight, N = Neutral, UW = Underweight.

9
Bharat Iyer Asia Pacific Equity Research
(91-22) 6157-3600 19 March 2010
bharat.x.iyer@jpmorgan.com

Unilever Indonesia Tbk (UNVR.JK) Price Chart

Date Rating Share Price Price Target

20,083 N Rp7,100 (Rp) (Rp)
01-Nov-06 N 4800 4750
17,214 N Rp7,000 UW Rp9,700
07-Mar-07 N 5550 5100
14,345 03-Jul-07 N 6750 6400
N Rp4,750N Rp5,100
N Rp6,400 N Rp7,000 N Rp7,400 UW Rp7,000
UW Rp9,750
UW Rp10,000
01-Aug-07 N 7550 7000
11,476 08-Nov-07 N 6650 7100
Price(Rp)
01-Feb-08 N 6900 7000
8,607
13-Aug-08 N 6800 7400
5,738 26-Mar-09 UW 7900 7000
22-Jul-09 UW 10750 9750
2,869 20-Aug-09 UW 11000 9700
08-Dec-09 UW 11300 10000
0
Sep Jun Mar Dec Sep
06 07 08 08 09

Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends.
Break in coverage Sep 26, 2004 - Jan 23, 2006. This chart shows J.P. Morgan's continuing coverage of this stock; the
current analyst may or may not have covered it over the entire period.
J.P. Morgan ratings: OW = Overweight, N = Neutral, UW = Underweight.

Explanation of Equity Research Ratings and Analyst(s) Coverage Universe:

J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the
average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelve
months, we expect this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s)
coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of
the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] J.P. Morgan Cazenove’s UK Small/Mid-Cap dedicated research
analysts use the same rating categories; however, each stock’s expected total return is compared to the expected total return of the FTSE
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J.P. Morgan Equity Research Ratings Distribution, as of December 31, 2009

Overweight Neutral Underweight
(buy) (hold) (sell)
JPM Global Equity Research Coverage 42% 44% 14%
IB clients* 58% 57% 42%
JPMSI Equity Research Coverage 41% 49% 10%
IB clients* 78% 73% 57%
*Percentage of investment banking clients in each rating category.
For purposes only of NASD/NYSE ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a hold
rating category; and our Underweight rating falls into a sell rating category.

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appearances, and trading securities held by a research analyst account.

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Bharat Iyer Asia Pacific Equity Research
(91-22) 6157-3600 19 March 2010
bharat.x.iyer@jpmorgan.com

Other Disclosures

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Bharat Iyer Asia Pacific Equity Research
(91-22) 6157-3600 19 March 2010
bharat.x.iyer@jpmorgan.com

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“Other Disclosures” last revised March 1, 2010.

Copyright 2010 JPMorgan Chase & Co. All rights reserved. This report or any portion hereof may not be reprinted, sold or
redistributed without the written consent of J.P. Morgan.

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