PT Telkom Indonesia (Persero) Tbk
The First Half 2015 (1H15) Results
August 4, 2015
Disclaimer
This document may contain forward-looking statements within the meaning of safe- harbor. Actual results could differ materially from projections, estimations or expectations. These may involve risks and uncertainties, 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
3
1. Telkom in Brief
2. 1H15 Financial and Operational Results
3. Company Guidance 2015
Telkom in Brief
Telkom and Subsidiaries
5 Mobile
Business
Multimedia Business
International Business
Infrastructure Business
Singapore Hongkong Timorleste Australia
Macau Arab Saudi USA Malaysia
New Zeland Myanmar Government
52.6%
Public 47.4%
Affiliation
T IME T T
Note :
T: Telecommunication
IME : Information, Media & Edutainment
Telkom Group Portfolios
Well diversified business portfolio: 9 Product Portfolios and 6 Customer Portfolios
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
8 9 7
15 14 13 12 11 10
16
Government
Current Ownership
7
Telkom Indonesia is listed at Indonesia Stock Exchange (Bloomberg: TLKM IJ) and New York Stock Exchange (Bloomberg: 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 June 30, 2015
Rp295.3Tn*
1H15 Financial
and Operational Results
1H15 Performance Highlights
9
Consolidated Revenue grew by 12.2% Year-on-Year (YoY) with EBITDA and Net Income grew by 6.3% and 2.2% YoY, respectively.
Telkomsel Revenue grew by 13.0%, EBITDA by 10.7%, and Net Income by 14.7% YoY.
Data, Internet, and IT Services (exclude SMS) recorded the highest revenue growth, with 28.3% increase.
Telkomsel’s digital business grew by 37.7%, with data traffic jumped 121.4%.
Telkomsel installed 11,495 new BTS, of which around 90% were 3G/4G BTS Telkomsel expands its 4G LTE network and services in 7 key cities (Jakarta, Bali, Bandung, Surabaya, Medan, Makassar and Lombok)
1H15 Operational Results
Telkomsel Operational:
•
3.5 mn net add in H15. Total customers: 144.1 mn
• Mobile data payload jumped 121.4%. Smartphone users grew 54.2% to 48.1 million.
• Added 11,495 new BTSs in 1H15
Telkom Operational:
• Fixed line subs increase xx% to 10.2 million
• Fixed broadband users increased 15.9% YoY to
3.7 million, contributed by IndiHome Triple Play
Strong Revenue Growth, Driven by Data Business
11
▲
12.2
%TOTAL Note: “Other” among others consists of CPE, Infrastructure Lease, Directory Assistance and USO.
▲7.8%
▲28.3%
▼5.6%
▲36.3% ▼6.1%
Revenue YoY (Rp Trillin)
▲6.8%
43.5 48.8
1H14 1H15
16.4
11.6
6.6
4.6
1.9 2.4
17.7
14.9
7.1
4.4
2.5 2.2
Cellular voiceData, Internet, & IT (excl SMS) SMS Fixed line voiceNetwork & Other telco servicesInterconnection
1H14 1H15
Strong Normalized EBITDA & Net Income Growth
▲ 6.3%
▲ 2.2%
EBITDA (Rp Tn) Net Income (Rp Tn)
Without ERP :
EBITDA growth 10.1%
Net Income growth 11.3%.
7.3 7.4
1H14 1H15
22.1 23.5
1H14 1H15
Increased Operating Expenses in line with Infrastructure Development
13
Operating Expenses YoY (Rp Trillion)
▲ 14.4%
TOTAL
▲30.3%
▼23.3%
▼2.8%
▲9.2%
▼287,6%
▲7.7%
▲23.0%
Note: others included (gain)/loss on forex 29.5
33.7
1H14 1H15
10.8
8.2
4.8
2.5 1.8
1.5 (1.9)
14.0
8.8
5.9
2.0 2.0
1.4 (0.7)
O&M D&A Personnel Interconnection G&A Marketing Others
1H14 1H15 ERP amounting Rp844
billion in 1H15 -TSEL BTS increased 21.8%
-Additional backbone -Additional IndiHome subs
+13%
1H-15 35.4
25.7 9.7
1H-14 31.3
24.3 7.0
REVENUES
+19%
1H-15 11.5
1.2 9.3 0.9
1H-14 9.7
2.5 7.2 0.0
In Million In Thousand
YEAR-ON-YEAR ACHIEVEMENT
In Trillion
1H-15 5.8
1H-14 6.0
CAPEX PAID
TOTAL ASSET BTS ROLL OUT BTS ON AIR
In Thousand +22%
1H15 96.9
47.6 48.2 1.1
1H14 79.6
45.3 34.3 0.0 CUSTOMER
In Trillion
Legacy 6%
Digital Business
29%
-50%
38%
41%
5%
EBITDA NET INCOME
In Trillion In Trillion
Margin 54%
56%
Margin 29%
28%
1H-15 19.2
1H-14 17.4
1H-15 10.1
1H-14 8.8
15%
11%
1H-15 78.8
1H-14 69.2
14%
1H-14
144.1
1H-15 137.4
5%
In Trillion
3G
2G 4G
3G
2G 4G -4%
Telkomsel: Triple Double-Digit Growth
+38%
1H-15 9.7
0.9 8.8
1H-14 7.0
0.7 6.4
DIGITAL BUSINESS REVENUE
In Million
YEAR-ON-YEAR ACHIEVEMENT
In Trillion
DATA USER
Digital 37%
Services Broadband
38%
1H-15 207.2
1H-14 93.6
DATA TRAFFIC
121%
In PB
1H-15 48.1
1H-14 31.2
3G/4G CAPABLE DEVICE
54%
In Million
1H-15 1H-14
3G & 4G BTS ROLL OUT
In Thousand
3G & 4G BTS ON AIR
In Thousand
Broadband:
Telkomsel Flash
BlackBerry
Digital Services:
- Digital Lifestyle - Digital Advertising
- Digital Payment & Mobile Banking - M2M
1H-15 66.1
1H-14 63.3
4%
3G 4G
10.3
9.3 7.2 0.9
7.2 0.0
29% 3G
4G
49.3
48.2 1.1 34.3
34.3 0.0
1H-15 1H-14
41%
Telkomsel: Continued Focus on Digital Business
15
▪ On July 6, 2015 Telkomsel officially used 1800 MHz spectrum for 4G LTE services.
▪ Now available in 7 cities: Jakarta, Bali, Bandung, Surabaya, Medan, Makassar and Lombok. More cities to come.
▪ Current subscribers: 800,000
Strenthen Footprint on 4G LTE
17
Recent Development
▪ Review on Interconnection tariff
▪ 1800 Mhz spectrum rearrangement:
expected completion by end 2015 International Expansion
▪ To build data center in Jurong Singapore of 20,000 M2
▪ To acquire Guam GTA. Expected
closing by end 2015.
Current Development Indonesia Digital Network
▪Employee: 576 (TLKM) & 161 (TSEL)
▪Expenses: Rp844Bn
▪ Rp7 trillion bonds in June 2015
▪ Tenor: 7 yrs, 10 yrs, 15 yrs, 30 yrs to support infrastructure development
HR & Corporate Finance
▪ Id-Ring: 76.000 km fiber backbone
▪ Id-Access:
o 6.5 million fiber Homepassed oWiFi: 150,000 access point
▪ Id-Conv: 55,000 M2 Data center
Regulation
Mitratel Deal Early Retirement Program
Telkom Bond I
CSEA is in the process of termination.
Company Guidance 2015
2015 Management Guidance
19
In line with or slightly above the market for TLKM and
Telkomsel, with focus on strengthening mobile broadband and accellerated fixed broadband through triple play and FTTH
Revenue Growth
Slightly decline for TLKM and Telkomsel in line with accellerated investment in digital business
EBITDA Margin
Group (Consolidated): around 25% over Revenue
▪ Mobile related: 60% - 65%
▪ Fixed broadband related: 20% - 25%
▪ Other business: 10%
Capex
19
Mobile Business
Main Program
Indonesia Digital Network International Expansion
1. Protect Legacy Business 2. Strengthen The Core 3. Trigger Digital Services
1. ID-Ring 2. ID-Access 3. ID-Convergence
1. Follow the People 2. Follow the Network
3. Follow the Traffic & Money
✓ Maintain double digit growth
✓ Grow digital business
✓ Turn-around fixed line
✓ Drive digital business
✓ Stretch & Expand int’l business
✓ Strengthen footprint in regional
Thank You
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