Indosat 1Q16 Final

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PT. Indosat Tbk.

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New Stream to focus on

PT Indosat Tbk – 1Q 2016 Results

Market and consumers are evolving…

DIGITALIZATION is a new opportunity for us to win the market

Why

Change?

• Increase Attractive to help the business

• Quality perception and retention challenges

• Faster growth, renewed sense of purpose

We can leverage the Ooredoo brand to capture this opportunity

Innovative & global brand association Technical & funding support Data and digital leadership

The New Indosat Ooredoo Positioning & Streams

We are building

Indonesia's leading digital telco

, enabling access and…

greater

_{Liberating products}

& services

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Affordability &

Accessibility 4G LTE for Everybody

New Behavior & Customer-centric Experience

A data strong network

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We treat our

customer like a friend

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New look & feel!

New logo & designs, reskinned Galeri/ outlets/ office/ materials

✓

Digital customer experience!

Revamped digital touchpoints, Apps Corner

✓

New culture & behavior!

Can-do attitude, Reform mindset: positive & curious

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Liberating products & services

From High Variety package offer…

..Becoming Clear and Simple

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5

A Data Strong Network

2 Indosat Ooredoo won Speedtest

Award for Fastest Mobile Network and

Fastest 4G Network in Indonesia

based on the results of tests

performed on Speedtest.net and

Speedtest mobile applications.

Network performance test results show

21.54 Mbps download speed and 9.43

Mbps upload speed

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We treat our customer like a friend

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0815XXXXXXX

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Serving all customer segments

Mobile Banking

Telco Wallet

Micro Savings, loans

Cash Management

Micro insurance

Pay with QR

Remittance

Mobile POS

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Volume

(in Million)

(Dec-14) (Dec-15)

900%

Number of Agent

Locations

154K

222K

(Dec-14) (Dec-15)

63%

Number of Subscribers

(in Million)

1,3

2,5

(Dec-14) (Dec-15)

84%

Active Agents

12k

115k

(Dec-14) (Dec-15)

614%

Transaction Value

(in trillion IDR)

2,5

(Dec-14) (Dec-15)

0,19

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Building biggest ever eco-payment system

Chain Stores

Cash in

Transfer &

Remittance

ATM Switching

Airtime Billers

MTO MNO

Insurance FIs

Pay with

QR Codes

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Financial and

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1Q16 YoY Overview

Consolidated Revenue increased 11.8%

from IDR 6,093 billion to IDR 6,813 billion

EBITDA increased 13.7% from IDR 2,604

billion to IDR 2,961 billion, EBITDA Margin

reached 43.5%

Profit Attributable to Owners of The Parent

increased from a loss of IDR 456 billion to a

profit of IDR 217 billion

Free Cash Flow decreased from IDR 587

billion to IDR 463 billion

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1Q16 QoQ Overview

Consolidated Revenue decreased 5.2%

from IDR 7,187 billion to IDR 6,813 billion

EBITDA increased 1.9% from IDR 2,906

billion to IDR 2,961 billion, EBITDA Margin

reached 43.5%

Profit Attributable to Owners of The Parent

increased from a loss of IDR 188 billion to a

profit of IDR 217 billion

Free Cash Flow increased from IDR -1,509

billion to IDR 463 billion

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Operating Revenue

EBITDA

EBITDA Margin

Profit (Loss)Attributable

to Owners of the Parent

6,813

in IDR billion

6,093

Financial Highlights

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• Revenue and EBITDA continued to grow, supported by strong growth in cellular

revenue and cost management initiative that starts to deliver the result.

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in IDR billion

-5.2% QoQ +11.8% YoY

1Q-15

Cellular Fixed Data

Fixed Voice

-20.1% / -21.4%

Operating Revenue Breakdown

5,904

6,962

Segment Revenue Overview

4Q-15

• Strong data cellular revenue growth has driven up overall cellular business performance

• IDR appreciation drove IDD revenue down and eventually brought down Fixed voice revenue QoQ and YoY.

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Voice

SMS

Data

VAS

8.2%

YoY

13.3%

45.5%

21.8%

-6.2%

QoQ

-8.3%

7.4%

5.8%

Increased VAS usage from various gaming &

_{content packages}

Cellular Revenue Performance

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- Healthy growth in all services YoY

- Seasonality impacted voice and sms revenue,

but data, supported by 4G network and

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66.5 68.5 69.0 69.7 69.8

2Q-15

+4.9% YoY +0.1% QoQ

1Q-15

Number of cellular customers

in million

2Q-15 1Q-15

in million

3.3

Net cellular customers additions

• Number of customer continued to grow, shifting from acquisition mode to

monetization mode.

4Q-15 _4Q-15

Cellular Customer Base

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ARPU and ARPM

Voice Traffic and MOU

• ARPU grew inline with customer addition YoY

• Voice traffic was growing due to our expansion in outside of Java area

67 67 70 76 69

Voice Traffic in billion minutes

(Voice Traffic)

in minute/subscriber

(MOU)

Improving ARPU

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Data Usage

SMS Delivered

• Increase in data traffic continued driven by 4G data plan focused

• SMS declined due to seasonality

56 60 62 59

in billion

-6.8% YoY

1Q-15

-11.6% QoQ

3Q-15 4Q-15 2Q-15 3Q-15

Strong Data Usage

4Q-15

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• Moderated operational expenses

• G&A ratio was higher due to professional fees related to new marketing strategy and

campaign being implemented

Cost of Service (CoS)

Depreciation and Amortization

Personnel

Marketing

as percentage of revenue

General and Administration

Total Expenses

Total Operating Expenses

1Q-15

Operational expenses

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2,604 2,758

3,205 _2,906 _2,961

EBITDA and EBITDA margin

+1.9% QoQ +13.7% YoY

1Q-15 EBITDA in IDR billion

EBITDA Margin 42.7%

2Q-15

EBITDA performance is supported by

strong revenue growth combined with

strict cost management initiative that

started to deliver result

3Q-15 42.3%

46.0%

EBITDA performance

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Net profit

• Strong revenue growth, good cost

management and stabilized currency

resulted in positive net profit

797

-456

217

+147.7% YoY -157.2% YoY

1Q-16 1Q-15

1Q-14* in IDR billion

* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015

Net profit

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Gross debt* and gross debt/EBITDA

Net debt* and net debt/EBITDA

• Gearing level continuously improved

• Reducing US debt portion is progressing

* IDR 3.73tn, IDR 4.07tn and IDR 3.76tn of obligation under finance lease are included in 1Q14, 1Q15 and 1Q16 respectively

27,174 27,398 _25,913

1Q-15

1Q-14 1Q-16

-5.4% YoY

Gross Debt in IDR billion

Gross Debt/EBITDA

1Q-16 1Q-14 1Q-15

Net Debt Net Debt/EBITDA in IDR billion

Balance sheet

-2.5% YoY

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Free cash flow

Capex and Capex/Revenue

• Moderated capex to revenue ratio as a result of price negotiation supported by

Ooredoo, the parent

in IDR billion

481 in IDR billion

Capex/Revenue 3Q-15

3Q-15

4Q-15

Free cash flow & Capex

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1Q-16

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Number of BTS

Data User

• Strong network performance to support data service

• Shifting the focus from acquisition toward monetization

22,212 22,902 23,525 23,596 23,714

In million

2Q-15

Network & Data User

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Management Focus

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● 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

● To further strengthen the corporate (b2b)

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FY 2015 Actual

FY 2016 Guidance

Consolidated Revenue Growth

11.1%

In line with market

EBITDA Margin*

42.9%

Low to Mid

40’s

CAPEX

IDR 7.3 trillion

IDR 6.5

–

7.5 trillion

* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015

2016 Guidance

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Thank You

Investor Relations & Corporate Secretary

Jl. Medan Merdeka Barat No. 21

Jakarta - 10110

Tel: +62 21 30442615

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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 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

consolidated financial statements, the official copy of such Supreme

Court’s decision hasn’t been received.

IM2 case development

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On 25 January 2016, Standard & Poor's Ratings Services (“S&P”) affirmed its 'BB+‘ long-term corporate credit rating on PT Indosat Tbk. The outlook is positive. S&P also affirmed their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based telecommunications company. S&P affirmed the rating because they expect Indosat to maintain its solid No.2 position in Indonesia's growing cellular market. The positive outlook reflects their view that the company's financial risk profile will improve over the next 12-18 months.

On 28 September 2015, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk (ISAT) and its Shelf-Registered Bond I/2014-2016, Bonds V/2007 Serie B, Bonds VII/2009 Serie B, and Bonds VIII/2012. PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s Sukuk Ijarah I/2014-2016, Sukuk Ijarah IV/2009 Serie B, and Sukuk Ijarah V/2012. The outlook for the corporate rating is “stable”. The ratings reflect ISAT’s strong support from its majority shareholder, strong market position, and stable operating performance.

On 21 October 2015, Moody's Investors Service says that PT Indosat Tbk's (Ba1 stable) 1H 2015 results were in line with their expectations, with continued improvement in operating performance from the second half of 2014. The stable outlook reflects Moody's expectation that Indosat will maintain its position as a leading mobile operator in Indonesia amid increasing competition for data services, and leverage, in terms of adjusted debt/EBITDA will remain in the 2.5x -3.0x range for the next 12 - 15 months as Indosat continues its high capex for network modernization.

On 15 March 2016, Fitch Ratings has upgraded the Long-Term Local-Currency Issuer Default Rating (LC IDR) of Indonesia’s second-largest telecommunications operator, PT Indosat Tbk (Indosat Ooredoo), to ‘BBB+’ from ‘BBB’. The agency has simultaneously affirmed Indosat Ooredoo’s Long-Term Foreign-Currency IDR (FC IDR) and its foreign-currency senior unsecured rating at ‘BBB’. Fitch has also affirmed the National Long-Term Rating at ‘AAA(idn)’. The Outlook on the ratings is Stable.

Credit ratings

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In IDR trillion

2020

* Excluding obligation under capital lease

2024

Debt maturity profile*

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* Telkom and Bakrie Telekom have the same spectrum, differentiated by its operational areas

15.0**

2300 Mhz

15.0**

-

** Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku

Spectrum overview

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