PT Telekomunikasi Indonesia Tbk
Full Year 2014 Results
March 2015
Disclaimer
This document may contain forward-looking statement within the meaning of safe- harbor. Actual results could differ materially from projections, estimations or expectations. These may involve risk and uncertainty, and may cause actual results and development to differ substantially from those expressed or implied in the statements. The company does not guarantee that any action, which may have been taken in reliance of this document will bring specific results as expected.
Content
1. Telkom in Brief
2. FY14 Financial and Operational Results
3. Guidance 2015
Telkom in Brief
Telkom Group Portfolios
15 business portfolio: 9 product portfolio and 6 customer portfolio
Product Portfolio
1
Customer Portfolio
Services
2
• Fixed Phone
• Fixed Broadband
• WiFi
• Full Mobility
• Limited Mobility
•Interconnection &
International Traffic
•Network Service
•Satellite
•Tower
Fixed Services
Mobile Services
NW & Infra Services Platform
Services
•Managed Apps & SI
•BPM
•Premise Integration
•E-Payment
•DataCenter & Cloud
•M2M
Digital Life
T I
2 3 1
Ecosystem Solution
•E-Health
•E-Tourism
•E-Transportation
•E-Gov
Big Data
Digital Home Digital Advertising
ME
Big Data
6 5
4
9 7 8
15 14 13 12 11 10
16
Government
Telkom and Subsidiaries
Mobile Business
Multimedia Business
International Business
Infrastructure Business
Singapore Hongkong Timorleste Australia
Macau Arab Saudi USA Malaysia
New Zeland Myanmar
Metra Digital Investama
Government
52.6%
Public 47.4%
Affiliation
T IME T T
Note :
T: Telecommunication
IME : Information, Media & Edutainment
Current Ownership
Telkom Indonesia is listed at Indonesia Stock Exchange (TLKM IJ) and New York Stock Exchange (TLK US)
Public 47.4%
Government 52.6%
Treasury Shares 2.6%
Total Shares
100,799,996,400 shares
Market Capitalization at IDX
*) as of December 31, 2014
Rp288.8Tn*
TOP 4
FY14 Financial
and Operational Results
Highlights Performance FY14
Continued strong revenue growth with healthy margins
Consolidated Revenue grew by 8.1% YoY to Rp89.7tn with 51.1% EBITDA margin Telkomsel Revenue grew by 10.4% YoY to Rp66.3tn with 56.2% EBITDA margin
Gaining remarkable subscribers growth
Broadband users grew 45.3% YoY to 40.4mn*) Cellular subscribers grew 6.9% YoY to 140.6mn
*) exclude PAYU
Continued leadership in infrastructure Fiber based backbone network 76,700 km
Total BTS Telkomsel85,420 units (22.3% YoY), New roll-out BTS 15,556 units.
Total 3G BTS Telkomsel38,836 units (43.7% YoY), New roll-out 3G BTS 11,807 units (1.7%)
Telkom recorded a strong operational and financial results in FY14
Revenues YoY (Rp Tn)
▲
8.1
%TOTAL Note: “Other” among others consists of CPE, Pay TV, Leased Revenue, Directory Assistance, USO and Modem Sales
▲15.7%
83.0
89.7
FY13 FY14
▲6.7%
32.6 32.1
9.7
4.8 2.4 1.3
37.7
34.3
8.9
4.7 2.8 1.3
Data, Internet, &
IT (incl SMS)
Cellular voice Fixed line voice Interconnection Other Network
FY13 FY14
▼8.5%
▼2.8%
▲16.3% ▲2.2%
Expenses YoY (Rp Tn)
▲ 9.4%
TOTAL
55.1
60.3
FY13 FY14
▲15.3%
▼1.2%
▼0.7%
▲1.6%
▲64.1%
▲8.6%
▼4.6%
19.3
15.8
9.7
4.9 4,2
3.0 (1.9)
22.3
17.1
9.6
4.9 4,0
3.1 (0,7)
O&M D&A Personnel Interconnection G&A Marketing Other
FY13 FY14
Broadband Services
Revenues (Rp Tn)
Data services, especially mobile data, is being the growth driver
Users (Million)
Flash
▲ 12.8%
▲80.7%
Fixed Bband
Mobile Data Fixed Broadband
▲ 7.8%
FY13 FY14
▲ 32.9%
▲34.2%
14.1
4.6 4.9
10.5
(Including PAYU)
FY14 FY13
Blackberry
▼22.8%
17.3
7.6 3.0
3.4 5.8
31.2
▲ 45.3%
1. 8 players (4 GSM + 4 CDMA) and mature telco industry with estimated 130% SIM penetration (± 75% population-based penetration). Relatively stable competition in legacy businesses.
2. Early stage in data business with around 50% data users and around 30% smartphone penetration.
3. Tremendous growth in digital business; data traffic grew by more than 100% YoY and data revenue grew more than 30%
in FY-14.
Industry Overview
TSEL Population Coverage 2G: ± 95% |
3G: ± 60%
Subscriber Market Share (Estimated)
Source: Company’s Data & Market Intelligence
56% 44%
TSEL Others Sumatera
CB portion: 28%
Greater Jakarta &
West Java
CB portion: 24% Java & Bali CB portion: 26%
Papua, Maluku, Sulawesi, Kalimantan CB portion: 22%
Cellular Industry: Telkomsel Profile
FY13 FY14 Diff.
TSEL 41% 44% 3ppt
Others 59% 56% -3ppt
+10%
FY-14 66.3
50.6 15.6
FY-13 60.0
48.4 11.7
REVENUE
0%
FY-14 3.6 11.8
0.2
FY-13 4.0 11.6
0.0
In Million In Thousand
YEAR-ON-YEAR ACHIEVEMENT
In Trillion
FY-14 14.5
FY-13 12.4
CAPEX PAID
TOTAL ASSET BTS ROLL OUT BTS ON AIR
In Thousand +22%
FY-14 85.4
46.4 0.2 27.0
FY-13 69.9
42.8
38.8 CUSTOMER
In Trillion
3G
2G
17%
5%
Legacy Digital Business
2%
-10%
34%
44%
8%
EBITDA NET INCOME
In Trillion In Trillion
Margin 56%
56%
Margin 29%
29%
FY-14 37.3
FY-13 33.9
17.3
FY-13
19.4
FY-14 12%
10%
78.2
FY-13 73.3
FY-14 7%
140.6 131.5
FY-14 FY-13
7%
Free Cash Flow
Dec-14: Rp16.5tn (Dec-13: Rp17.3tn)
Telkomsel: Solid Revenue Growth with Healthy Profitability
In Trillion
Debt to Equity Ratio (DER):
Dec-14: 4.4% (Dec-13: 4.5%)*
Dec-14: 15.3% (Dec-13: 15.9%)**
*) excluding obligation under finance lease
**) Including obligation under finance lease
4G
3G
2G 4G
+34%
FY-14 15.6
1.5 14.1
FY-13 11.7
1.2 10.5
DIGITAL BUSINESS REVENUE
In Million
YEAR-ON-YEAR ACHIEVEMENT
In Trillion
DATA ENABLED CUSTOMER
Digital 32%
Services Broadband
34%
FY-14 234.9
FY-13 96.7
DATA TRAFFIC
143%
In PB
FY-14 40.4
FY-13 23.7
3G CAPABLE DEVICE
71%
In Million
FY-14 11.8
FY-13 11.6
3G BTS ROLL OUT
2%
In Thousand
FY-14 38.8
FY-13 27.0
3G BTS ON AIR
44%
In Thousand
Broadband:
Telkomsel Flash
BlackBerry
Digital Services:
- Digital Lifestyle - Digital Advertising
- Digital Payment & Mobile Banking
FY-14 67.9
FY-13 60.5
12%
Telkomsel: Continue to Focus on Digital Business
IDN: Drive Digital Business
High Speed Broadband Access through Optical Fiber Network & Wifi
IP-based and Optical Backbone Network
Integrated Next Generation Network for Multi Services & Multi Screen
Id-Ring
Indonesia Digital Network
Id-Con
• High Speed Optical Access Network
• 13.2 million Homes passed
• 170 Thousands WiFi
• IP and Optical Backbone Network
• 76,724 km national & regional backbone network
• 54,800 Square Meter Data Center
Progress
TIMES International Portfolio
BPO &
IT Solution
Mobile Business Alliance MVNO & MNO
International Expansion
International Expasion:
Strengthen Footprint in the Region
Borderless
“T”
Satellite &
Network
CDN / Data Center
DiCO (Digital Company)
