PT. Indosat Tbk.
Our Strategy Direction
to be survive in this market and competition
Digital Partner
Being a strong interface
for our digital partners
Building a strong organization with strong
All players are directing toward “Digital Telco”
Indonesia’s
Leading Digital
Telco
We have been doing our part in digital space
Building the best digital infrastructure in our presence (4G)
We redefine our digital partnership
How we differentiate to outperform the
competition
As a “Best Brother” to grow digital business
To become the best and preferred Telco partner for all digital
company (local and international). Focus on core (cellular, B2B,
FTTH) profitability, no investment/resources allocation on non core
business
To become telco company with the best Digital Touch Point for our
external stakeholder (Consumer & B2B) as well as internal staff
To have the fastest revenue growth in B2B ICT business by being
digital corporate partner
To become telco company with best digital customer experience
where we have coverage
To become the most attractive and preferred telco company to work
for the next generation
Building completely digital ecosystem
Re-incumbent ICT market place
Financial and
1Q17 YoY Overview
Consolidated Revenue increased 7.0%
from IDR 6,813 billion to IDR 7,290 billion
EBITDA increased 4.7% from IDR 2,961
billion to IDR 3,100 billion, EBITDA Margin
reached 42.5%
Profit Attributable to Owners of The Parent
decreased from IDR 217 billion to IDR 174
billion
1Q17 QoQ Overview
Consolidated Revenue decreased 4.8%
from IDR 7,660 billion to IDR 7,290 billion
EBITDA decreased 8.8% from IDR 3,398
billion to IDR 3,100 billion, EBITDA Margin
reached 42.5%
Profit Attributable to Owners of The Parent
decreased 33.0% from IDR 260 billion to
IDR 174 billion
Operating Revenue
EBITDA
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
7,290
1Q-16
1Q-17
YoY
7.0%
3,100
4.7%
42.5% -1.0ppt
174
-19.9%
7,290
1Q-17
QoQ
-4.8%
3,100
-8.8%
42.5%
-1.9ppt
174
-33.0%
in IDR billion
6,813
2,961
43.5%
217
Financial Highlights
909 989
1,044 1,190
998
228 226
238 266
241 in IDR billion
-4.8% QoQ +7.0% YoY
Cellular Fixed Data
Fixed Voice
-9.4% / +5.7%
-16.1% / +9.9%
-2.5% / +6.6%
QoQ / YoY
1Q-16
Operating Revenue Breakdown
Segment Revenue Overview
2Q-16 5,676
6,813
3Q-16
•
Cellular revenue decline QoQ due to seasonality impact in 1Q.
•
Solid YoY growth in fixed data segment supported by IT services.
Voice
-13.1%
Digital business initiatives continued to find its
form to generate growth
Cellular Revenue Performance
- Data took the lead in driving the cellular
revenue growth.
- Voice service through apps started to
replace traditional voice service.
69.8
80.5 81.6 85.7
95.6 +37.0% YoY +11.6% QoQ
Number of cellular customers
in million in million
0.1
10.7
1.1
4.0
10.0
1Q-16 1Q-16
Net cellular customers additions
2Q-16 2Q-16
Cellular Customer Base
ARPU and ARPM
Voice Traffic and MOU
•
Significant customers additions may take time to generate usage and eventually
drive up ARPU.
•
Total voice traffic was growing coming from customers additions.
69 71
66 68
57
137
126 124 123 125
14.5 15.6 16.6 16.6 15.3 +10.3% YoY -7.3% QoQ
Voice Traffic in billion minutes (Voice Traffic)
in minute/subscriber (MOU)
MOU 26.4 25.5 24.2 24.5 21.7
-11.3% QoQ -17.8% YoY
ARPU in thousand IDR (ARPU)
ARPM
1Q-16
1Q-16 2Q-16 2Q-16
in IDR (ARPM)
ARPU and voice usage indicator
Data Usage
SMS Delivered
•
Quarterly data revenue grew faster than traffic growth, showing better data monetization
•
SMS traffic continued to decline as trend shifting toward messaging application.
52 55 in TByte
+11.4% QoQ +227.6% YoY
in billion
-29.8% YoY -15.4% QoQ
1Q-16 2Q-16 1Q-16
Strong Data Usage
2Q-16
•
Larger network coverage drove increase in cost of service expense.
•
Moderated operational expenses relative to revenue.
Cost of Service (CoS)
Depreciation and Amortization
Personnel
Marketing
as percentage of revenue
General and Administration
Total Expenses
Total Operating Expenses
Operational expenses
2,961 3,080 3,425 3,398 3,100
EBITDA and EBITDA margin
-8.8% QoQ +4.7% YoY
EBITDA in IDR billion
EBITDA Margin 1Q-16
EBITDA and Net Profit performance
2Q-16 43.5%
3Q-16 4Q-16 43.2% 45.2% 44.4%
1Q-17 42.5%
Net profit
-456
217 174
-19.9% YoY +147.7% YoY
1Q-17 1Q-16
1Q-15 in IDR billion
•
EBITDA margin inline with guidance.
2.73
2.19
1.84
27,398 25,913
22,798
2.39
1.97
1.68
23,924 23,331 20,839
Gross debt* and gross debt/EBITDA
Net debt* and net debt/EBITDA
•
Currency mixed has improved and shall continue toward lower USD debt portion
followed by further downward debt level
* IDR 4.07tn, IDR 3.76tn and IDR 3.44tn of obligation under finance lease are included in 1Q15, 1Q16 and 1Q17 respectively 1Q-16
1Q-15 1Q-17
-12.0% YoY
Gross Debt in IDR billion
Gross Debt/EBITDA
1Q-17 1Q-15 1Q-16
Net Debt Net Debt/EBITDA in IDR billion
Balance sheet
557 1,057
Free cash flow
Capex and Capex/Revenue
•
Capex spent for 1Q-2017 was in line with guidance
in IDR billion
463
877
1,307
-186
1,051
Capex (Spent)
in IDR billion
Capex/Revenue
1Q-16 2Q-16 1Q-16 2Q-16
Free cash flow & Capex
3Q-16 3Q-16
in %
Number of BTS
Data User
•
4G coverage has reached 136 cities and counting
23,714 23,793 23,859 24,042 24,219 25,068 25,816 26,273 27,724 28,510 3,544 3,724 4,080 4,717 5,446 +3.0% QoQ +11.2% YoY
3Q-16
2G 3G
In million
52,326
1Q-16 1Q-16 2Q-16
31.2 35.1
39.4 40.5 41.1 +1.5% QoQ +31.7% YoY
Network & Data User
2Q-16 54,212 56,483
1Q-17 58,175
Management Focus
●
Continue to transform Indosat Ooredoo to
become the leading digital telco
in
Indonesia, both from a product offering
perspective as well as the way it interacts
with its stake holders
●
Continue to build operational excellence
and efficiency as part of the company
culture
●
To explore industry synergies to become
more efficient and effective
FY-16
Actual
2017
Guidance
Consolidated Revenue Growth
9.0%
In line with market
EBITDA Margin
44.1%
Low to Mid
40’s
CAPEX
IDR 7.3 trillion
(Cash out)
~ IDR 6 trillion
(Spent)
Thank You
Investor Relations & Corporate Secretary
Jl. Medan Merdeka Barat No. 21
Jakarta - 10110
Tel: +62 21 30442615
On September 16, 2014, the South Jakarta Attorney Office (“Kejaksaan Negeri Jakarta Selatan”), without preliminary notification, executed the Supreme Court’s Decision on Mr. Indar Atmanto. The execution was done based on a quotation of the Supreme Court’s Decision, which states, among others, that (i) Mr. Indar Atmanto is found guilty and sentenced to eight years imprisonment and charged with penalty of Rp300,000,000,- (if the penalty is not paid, Mr. Indar Atmanto would serve an additional six months imprisonment), and (ii) IM2 pay the losses sustained by the State amounting to Rp1,358,343,346,674,-.
Subsequently, on January 16, 2015, Mr.Indar Atmanto and/or his lawyer or IM2 received the document on the Supreme Court’s decision regarding the litigation case. As of the issuance date of the consolidated financial statements, Mr. Indar Atmanto and IM2 plan to conduct further legal act by submitting a reconsideration request peninjauan kembali
(”PK”).
On March 16, 2015, Mr. Indar Atmanto’s submission of Judicial Review [Peninjauan Kembali (”PK”)] was officially registered at the Corruption Court under No. 08/AKTA.PID.SUS/PK/TPK/2015/PN.Jkt.Pst.
On November 4, 2015, the Supreme Court’s official website announced that the Judicial Review filed by Mr. Indar Atmanto was rejected based on Supreme Court’s decision dated October 20, 2015. However, no detailed information regarding the exact content of such Supreme Court’s decision was available. As of the issuance date of the interim
On January 17, 2017, S&P Global Ratings affirmed its 'BB+' long-term corporate credit rating on PT Indosat Tbk. The outlook remains positive. At the same time, they affirmed their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based On 17 March 2017, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk (ISAT) and its Shelf Registration Bond I/2014-2016, Bond VIII/2012, and Bond V/2007 Serie B. PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s Shelf Registration Sukuk Ijarah I/2014-2016 and Sukuk Ijarah V/2012. PEFINDO has also assigned its “idAAA” and
“idAAA(sy)” ratings to ISAT’s Shelf Registration Bond II/2017-2019 of a maximum of IDR9 trillion and Shelf Registration Sukuk Ijarah II/2017-2019 of a maximum of IDR1 trillion, including the first phase issuance of IDR2.7 trillion Shelf Registration Bond II/2017 and IDR0.3 trillion Shelf Registration Sukuk Ijarah II/2017.
On 12 May 2017, Moody's Investors Service has has upgraded to Baa3 from Ba1 the issuer rating of Indosat Tbk. (P.T.) (Indosat Ooredoo). The outlook for the rating is stable. At the same time, Moody's has withdrawn the company's Ba1 Corporate Family Rating. The rating upgrade reflects the continued strengthening of Indosat Ooredoo's operational metrics as well as the ongoing stabilization of its financial profile, including lower leverage levels.
On 10 March 2017, Fitch Ratings has upgraded PT Indosat Tbk's (Indosat Ooredoo) Long-Term Foreign-Currency Issuer Default Rating (IDR) and foreigncurrency senior unsecured debt rating to 'BBB+' from 'BBB' and simultaneously affirmed its LongTerm Local Currency IDR at 'BBB+'. Fitch Ratings Indonesia has also affirmed the National LongTerm Rating at 'AAA(idn)'. The Outlook is Stable.
1.58 In IDR trillion
2020
2019 2022
2018 2017
IDR
USD in IDR
2021 2023 2024
Debt maturity profile*
Number of BTS
2 x 10.0
900 Mhz
2 x 7.5
2 x 7.5
Indosat
Telkomsel
XL Axiata
2 x 20.0
1800 Mhz
2 x 22.5
2 x 22.5
2 x 10.0
2100 Mhz
2 x 15.0
2 x 15.0
in Mhz
Hutchison
- 2 x 10.0 2 x 10.02 x 2.5
850 Mhz
2 x 4.5
-15.0*
2300 Mhz
15.0
-* Indosat/IM2: West Java exclude Bogor, Depok & Bekasi
