PT. Indosat Tbk.
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3
PT Indosat Tbk – 1H 2016 Results
Revenue growth
4.6% growth QoQ
Cellular Revenue growth
4.2% growth for QoQ
Data Traffic growth
46.3% growth QoQ
83.5% growth YoY
Indosat Ooredoo Juara
Data Revenue growth
20.1% growth QoQ
55.5% growth YoY
Voice & SMS Revenue growth
Moving into LTE
40 Cities, 43 million population coverage
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3 Stream of Services
PT Indosat Tbk – 1H 2016 Results
Business is coming from Large Enterprise customer with focus on fixed connectivity & internet
and IT Services.
In the last 2 years, we develop B2B mobile business which related to mobile data connectivity
and application.
Fixed
Connectivity
Leased Circuit
Ethernet Link
IPVPN
Fixed Internet
IP Transit
Dedicated Internet
Access
IT Services
Data Center
Cloud Infrastructure
as-a-Service
7
Our business transformation journey is moving
towards being “Indonesia’s Leading Digital Telco”
Financial and
9
1H16 YoY Overview
Consolidated Revenue increased 10.5%
from IDR 12,620 billion to IDR 13,942 billion
EBITDA increased 12.6% from IDR 5,362
billion to IDR 6,040 billion, EBITDA Margin
reached 43.3%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 734 billion to a
profit of IDR 428 billion
Free Cash Flow decreased from IDR 1,792
billion to IDR 1,340 billion
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2Q16 QoQ Overview
Consolidated Revenue increased 4.6%
from IDR 6,813 billion to IDR 7,129 billion
EBITDA increased 4.0% from IDR 2,961
billion to IDR 3,080 billion, EBITDA Margin
reached 43.2%
Profit Attributable to Owners of The Parent
slightly decreased from IDR 217 billion to
IDR 211 billion
Free Cash Flow increased from IDR 463
billion to IDR 877 billion
Operating Revenue
EBITDA
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
13,942
in IDR billion
12,620
5,362
42.5%
-734
Financial Highlights
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Double digit Revenue and EBITDA growth YoY in 2 consecutive quarters supported
by growth in all services (voice, SMS, data dan VAS).
936 921 997 909 989
271 272 286 228 226
in IDR billion
+4.6% QoQ +9.2% YoY
Cellular Fixed Data
Fixed Voice
-1.0% / -16.5%
Operating Revenue Breakdown
5,904
6,962
Segment Revenue Overview
4Q-15
•
Strong data cellular revenue continue to grow and surpass traditional cellular services.
•
IDR appreciation drove IDD revenue down and eventually brought down Fixed voice
revenue QoQ and YoY.
PT Indosat Tbk – 1H 2016 Results
2Q-16 5,914
Voice
SMS
Data
VAS
5.2%
1H16
YoY
6.4%
55.5%
23.1%
0.9%
2Q16
QoQ
-3.6%
20.1%
30.8%
Digital business initiatives had pushed VAS
revenue growth
Cellular Revenue Performance
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- Healthy growth in all services YoY
- Data took the lead in driving the cellular
revenue growth
68.5 69.0 69.7 69.8
80.5
2Q-15
+17.3% YoY +15.3% QoQ
Number of cellular customers
in million
2Q-15
in million
2.0
0.5 0.8
0.1
10.7
3Q-15 3Q-15
Net cellular customers additions
•
A combination of data campaign and specific marketing program for ex-Java market
had taken the momentum in Ramadhan month
4Q-15 4Q-15
Cellular Customer Base
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1Q-16 1Q-16
PT Indosat Tbk – 1H 2016 Results
ARPU and ARPM
Voice Traffic and MOU
•
ARPU growth maintained YoY in line with data users growth.
•
Voice traffic was growing due to our expansion in outside of Java area continues.
67 70 76 69 71
Voice Traffic
in billion minutes
(Voice Traffic)
in minute/subscriber
(MOU)
Improving ARPU
15
1Q-16 1Q-16
PT Indosat Tbk – 1H 2016 Results
Data Usage
SMS Delivered
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4G traffic started to drive data usage growth
•
SMS declined due shifting trend toward messaging application started to be seen.
60 62
59
52 55
46,027
55,871 57,276 63,987
93,641
in TByte
+46.3% QoQ +103.4% YoY
2Q-15
in billion
-7.8% YoY +5.6% QoQ
3Q-15 4Q-15 2Q-15 3Q-15
Strong Data Usage
4Q-15
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1Q-16 1Q-16
PT Indosat Tbk – 1H 2016 Results
•
Moderated operational expenses
•
Marketing ratio was higher due to Ramadhan campaign
Cost of Service (CoS)
Depreciation and Amortization
Personnel
Marketing
as percentage of revenue
General and Administration
Total Expenses
Total Operating Expenses
2Q-15
Operational expenses
2,758 3,205 2,906 2,961 3,080
EBITDA and EBITDA margin
+4.0% QoQ +11.7% YoY
EBITDA
in IDR billion
EBITDA Margin 2Q-15
EBITDA performance is supported by
strong revenue growth combined with
strict cost management initiatives.
3Q-15 42.3%
46.0%
EBITDA performance
4Q-15 40.4%
18
43.5%
1Q-16
PT Indosat Tbk – 1H 2016 Results
Net profit
•
Strong revenue growth, good cost
management and stabilized currency
resulted in positive net profit
-1,117
-734
428
+158.3% YoY +34.3% YoY
1H-16 1H-15
1H-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
•
US debt portion has come down to 14% level
* IDR 3.84tn, IDR 4.05tn and IDR 3.61tn of obligation under finance lease are included in 1H14, 1H15 and 1H16 respectively 1H-15
1H-14 1H-16
-23.9% YoY
Gross Debt
in IDR billion
Gross Debt/EBITDA
1H-16
1H-14 1H-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
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FCF strengthening with improved operating CF generation and moderating capex
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Capex disbursement is in line with guidance toward end of year.
in IDR billion
1,310
in IDR billion
Capex/Revenue 3Q-15*
3Q-15
4Q-15*
4Q-15
Free cash flow & Capex
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Number of BTS
Data User
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Strong network performance to support data service.
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Data users is steadily growing.
22,902 23,525 23,596 23,714 23,793
In million
2Q-15
Network & Data User
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
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Continue to build operational excellence
and efficiency as part of the company
culture
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To explore industry synergies to become
more efficient and effective
●
To further strengthen the corporate (b2b)
offering to build a stable base through
connectivity and services.
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
25
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 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 1 June 2016, Moody's Investors Service has affirmed Indosat Tbk. (P.T.)'s Ba1 corporate family rating. At the same time, Moody's has changed the rating outlook to positive from stable. The change in outlook to positive reflects the substantial improvement evident in Indosat's operational and financial profiles, with the company -- over the last four quarters -- reporting YoY revenue growth of 11%-13%, above the sector average in Indonesia of about 9%.
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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0.36
2.11
0.27 0.27 2.72
5.98
2.56 2.27
0.95 0.36 2.08 0.36 0.81
In IDR trillion
2020
2019 2022
2018 2017
2016
IDR
USD in IDR
2021 2025
* 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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PT Indosat Tbk
( “Indosat” or “Company” ) cautions investors that certain statements contained in this
document state its management's intentions, hopes, beliefs, expectations, or predictions of the future are
forward-looking statements
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The Company wishes to caution the reader that forward-looking statements are not historical facts and are
only estimates or predictions. Actual results may differ materially from those projected as a result of risks and
uncertainties including, but not limited to:
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The Company’s ability to manage domestic and international growth and maintain a high level of
customer service
•
Future sales growth
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Market acceptance of the Company’s product and service offerings
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The Company’s ability to secure adequate financing or equity capital to fund our operations
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Network expansion
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Performance of the Company’s network and equipment
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The Company’s ability to enter into strategic alliances or transactions
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Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our
equipment
•
Regulatory approval processes
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Changes in technology
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Price competition
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Other market conditions and associated risks
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The company undertakes no obligation to update publicly any forward-looking statements, whether as a result
of future events, new information, or otherwise
Disclaimer
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