or 13.2, due to the increase of our operating revenue and also due to the decrease in cash payment for our
expense of Rp.6,211 billion, or 18.5. This was partially offset by an increase of Rp1,809 billion, or 32.4, in
payment for income tax and cash payment to employees of Rp1,721 billion, or 21.1.
2. Cash Flows from Investing Activities Net cash flows used in investing activities in 2013 was
Rp22,702 billion US1,865 million compared to Rp11,311 billion in 2012. This increase was primarily due to an
increase of Rp11,423 billion in acquisition of property and equipment. This was partially offset by a decrease
of Rp1,720 billion, or 42.9, in placement in time deposit and an increase of cash received in divestment of subsidiary
and associate company Rp926 billion.
3. Cash Flows from Financing Activities Net cash flows used in financing activities totaled Rp13,327
billion US1,095 million in 2013 compared to Rp13,314 billion in 2012. This increase by Rp13 billion, or 0.1, was
primarily due to a increase of Rp2,368 billion in proceed from sale of treasury stock and a decrease of Rp1,744
billion, in payments for treasury stock. This was partially offset by an increase of Rp1,227 billion, or 17.2, in cash
dividends paid to our stockholders and Rp1,083, or 30, to non-controlling stockholders subsidiaries due to the
increase of our operating profit and a decrease of Rp1,271 billion obtain from additional bank loan.
Obligation and Commitment
A. Contractual Obligation
The following table sets forth information on certain of our material contractual obligations as of December 31, 2014.
Contractual Obligations By Payment Due Dates
Total Less than 1
year
7
1-3 years
7
3-5 years
7
More than 5 years
7
Rp billion Rp billion
Rp billion Rp billion
Rp billion Long-Term Debts
15
16,853 5,328
5,035 3,059
3,431 Capital Lease Obligations
2
4,789 571
1,175 1,163
1,880 Operating Leases
3
29,373 3,847
6,791 6,426
12,309 Interest on Long-term Debts and Capital
Lease Obligations
6
6,097 1,718
2,323 1,337
719 Unconditional Purchase Obligations
4
16,195 16,195
- -
-
Total 73,307
27,659 15,324
11,985 18,339
1 See Notes 18-21 to our Consolidated Financial Statements. 2 Related to the leases of the slot of the tower, property and equipment
under RSA, transmission installation and equipment, data processing equipment, office equipment, vehicles and CPE assets.
3 Related primarily to leases of leased line, telecommunication equipment and land and building.
4 Capital expenditures committed under contractual arrangements. 5 Excludes the related contractually committed interest obligations.
6 See “Risk Management - Risk Factors –We are exposed to interest rate risk”.
7 Less than 1 year = 2015, 1-3 years = 2016-2017, 3-5 years = 2018-2019, more than 5 years=2020 thereafter.
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See Note 41 to our Consolidated Financial Statements for further details on our contractual commitments. In addition to the above contractual obligations, as of December 31, 2014, we had long-term liabilities for pension plan and
post-retirement health care benefits and contributed Rp226 billion to plan. See Notes 36 to our Consolidated Financial Statements..
B. Indebtedness
Consolidated total indebtedness consisting of short-term and long-term loans and other borrowings as of December 31, 2014, 2013 and 2012 were as follows:
As of December 31, 2014
2013 2012
Rp billion US million
Rp billion Rp billion
Indonesian Rupiah 20,013
1,615 17,543
16,192 US Dollar
1
2,643 213
1,734 2,053
Japanese Yen
2
796 64
979 1,031
Total 23,452
1,892 20,256
19,276
1 The amounts as of December 31, 2012, 2013 and 2014 translated into Rupiah at Rp9,645, Rp12,180 and Rp12,390 = US1, respectively, being the Reuters sell rates for US Dollar at each of those dates.
2 The amounts as of December 31, 2012, 2013 and 2014 translated into Rupiah at Rp111.8, Rp115.9 and Rp103.6 = Yen 1, respectively, being the Reuters sell rates for Yen at each of those dates.
Of our total indebtedness, as of December 31, 2014, Rp7,709 billion Rp6,210 billion, Rp4,222 billion and Rp5,311
billion were scheduled for repayment in 2015, 2016 to 2017, 2018 to 2019 and thereafter, respectively.
For further information on our Company’s indebtedness, see Notes 17-21 to our Consolidated Financial Statements.
C. Material Contract
In 2014 and 2013, we did not enter into any new material contracts nor did we amend any existing material contracts,
other than contracts entered into or amended in the ordinary course of business.
LIQUIDITY
Liquidity Sources The main source of our corporate liquidity is cash provided
by operating activities and long-term debt through the capital markets as well as long-term and short-term
loans through bank facilities. We divide our liquidity sources into internal and external liquidity.
A. Internal Liquidity Sources To fulfill our obligations, we rely primarily on our internal
liquidity. As of December 31, 2014, we had Rp17,672 billion in cash and cash equivalents available, which
increased by Rp2,976 billion compared to Rp14,696 billion in 2013. In 2014, the increase of cash flow provided
by operating activities primarily arise from cash receipts from customers of Rp84,748 billion.
We made net repayments of current indebtedness for borrowed money of Rp5,843 billion in 2012, Rp6,239
billion in 2013 and Rp7,724 billion in 2014. Cash outflows in 2014 reflected payments for short-term loans and
other borrowings of Rp2,247 billion and long-term loans and other borrowings of Rp4,538 billion.
Our internal liquidity strength reflected in our current ratio, which we calculate as current assets divided by
current liabilities, maintain over 100. In 2014 our curent ratio was to 106.2 compared to 116.3 in 2013.
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FINANCIAL AND PERF
ORMANCE HIGHLIGHT
MANA GEMENT
REPOR T
PREF A
GENERAL INF
ORMA TION OF
TELK OM INDONE
SIA
MANA GEMENT’S DISCUSSION
AND ANAL Y
SIS
CORPORA TE GO
VERNANCE
SOCIAL AND ENVIRONMENT
AL
RE SPONSIBILITY
APPENDICE S
B. External Liquidity Sources Our primary external sources of liquidity are short and
long-term bank loans, two-step loans, bonds and notes payable. In 2014 we used external liquidity bank loans
of Rp6,626 billion and other borrowings of Rp3,580 billion.
C. Outstanding Liquidity Sources We had undrawn loan facilities which include the following
sources of unused liquidity:
-
CIMB Niaga loan facility in the amount of Rp820 billion;
-
BNI loan facility in the amount of Rp234 billion;
-
BRI loan facility in the amount of Rp6 billion;
-
Danamon Bank loan facility in the amount of Rp20 billion;
-
Bank Ekonomi Raharja loan facility in the amount of Rp70 billion;
-
Syndicated loan facility of BNI, BRI and Bank Mandiri in the amount of Rp103 million.
WORKING CAPITAL
Net working capital, calculated as the difference between current assets and current liabilities, amounted to Rp4,638
billion as of December 31, 2013 and Rp1,976 billion US160 million as of December 31, 2014. The decrease
in net working capital was primarily due to:
-
A decrease of Rp4,075 billion in other current financial assets;
-
A decrease of Rp48 billion in asset held for sale;
-
A decrease of Rp35 billion in inventories – net of provision for obsolescene; and
-
A decrease of Rp12 billion in other receivable - net of provision for impairment of receivable.
This was partially offset by:
-
An increase of Rp1,378 billion in short-term bank loan;
-
An increase of Rp806 billion in current marturities of long-term liabilities;
-
An increase of Rp473 billion in unearned income; and
-
An increase of Rp286 billion in trade payable – third parties.
We believe that our working capital is sufficient for our present requirements. We expect that our working capital
will continue to be addressed by various funding sources, including cash from operating activities and bank loans.
SOLVENCY
Our solvency or our ability to meet our short-term and long-term obligations highly influenced by our source of liquidity. Refer to explanation on “Liquidity”.
A. Current Liabilities Our ability to pay our current liabilities is indicated by the ratios on the table below:
Ratios 2014
2013 2012
Current ratio 106.2
116.3 116.0
Quick ratio 104.7
114.5 113.6
Cash ratio 64.4
75.8 74.4
B. Non-Current Liabilities Our ability to pay our debt is indicated by the ratios on the table below
Ratios 2014
2013 2012
Debt to equity ratio 34.6
33.5 37.4
Debt to EBITDA 50.4
46.4 48.0
Times interest earned ratio 25.6 times
29.0 times 19.5 times
For detail discussion about our debt, see Notes 17-21 to our Consolidated Financial Statements.
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