TELKOM Conf Call FY10 005

(1)

PT

 

TELEKOMUNIKASI

 

INDONESIA,

 

Tbk.

Conference

 

Call

Full

 

Year

 

2010

 

Results


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Disclaimer

This

 

document

 

contains

 

financial

 

conditions

 

and

 

result

 

of

 

operation,

 

and

 

may

 

also

 

contain

 

certain

 

projections,

 

plans,

 

strategies,

 

and

 

objectives

 

of

 

the

 

Company,

 

which

 

would

 

be

 

treated

 

as

 

forward

 

looking

 

statements

 

within

 

the

 

meaning

 

of

 

applicable

 

law.

 

Forward

 

looking

 

statements,

  

by

 

their

 

nature,

 

involve

 

risk

 

and

 

uncertainty

 

that

 

could

 

cause

 

actual

 

results

 

and

 

development

 

to

 

differ

 

materially

 

from

 

those

 

expressed

 

or

 

implied

 

in

 

these

 

statements.

Telkom

 

Indonesia

 

does

 

not

 

guarantee

 

that

 

any

 

action,

 

which

 

should

 

have

 

been

 

taken

 

in

 

reliance

 

on

 

this

 

document

 

will

 

bring

 

specific

 

results

 

as

 

expected.


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Board of Directors

Rina ldi Firm a nsya h

CEO

Sudiro Asno

Director of Finance/ CFO

Erm a di Da hla n

Director of Network & Solution

Arie f Y a hya

Director of Enterprise & Wholesale

Fa isa l Sya m

Director of Human Capital & General Affair

I N yom a n G Wirya na t a

Director of Consumer

Pra se t io

Director of Compliance & Risk

Management

I ndra U t oyo

Director Information Technology & Supply / CIO

Sa rw ot o At m osut a rno President Director

T ri

Wa hyusa ri Director of Finance

Le ong Shin Loong

Director of Commerce N g K w on

K e e Director of Operation

H e rfini H a ryono Director of Planning & Development

TELKOM INDONESIA


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Telkom Indonesia Ownership

Telkom Indonesia is the largest telecommunication  company and network provider in Indonesia, majority  owned by the Government of Indonesia 

(Total shares = 20,159,999,280, including 1 Dwiwarna share series A)

Market cap : Rp160.2Tn, or 4.94% of  total market cap. at IDX Indonesia

Telkom Indonesia is listed at  Indonesia Stock Exchange (IDX), New 

York Stock Exchange (NYSE), London  Stock Exchange (LSE)and also Publicly

Offering Without Listing (POWL)

as of  December 31, 2010

Government 10,320,470,711 Local 1,933,971,630

52.5%

9.8%

37.7%

Treasury Stock 490,574,500 Foreign 7,414,982,438


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Indonesia

 Strong economic growth

 Stable political landscape

 Open market policies

Indonesia

is proving to be one of the 

most attractive opportunities in the region


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Telkom Indonesia is the Leading Provider

of Data Services

Go

 

to

 

market

 

services

 

:

 

IPTV,

 

Music

 

Distribution,

 

Application

 

and

 

Services,

 

E

Commerce

 

Portal

 

and

 

Remittance

 

Services


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Telkom Indonesia Business Portfolio – TIME

Our product portfolio, which includes the products of our key subsidiaries is  outlined by the following categories.

Telecommunication POTS

FWA

Mobile / Cellular International Services Broadband

Network Services Tower

Information

Premise Integration Services VA, Managed App & 

Performance/ITO E‐Payment ITeS(BPO, KPO)

Media & Edutainment

Media : PayTV& FTA Content / Portal

Indonesia

Retail

Wholesale

International Investment

CONSUMER SME LARGE ENTERPRISE


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Telkom Indonesia Enhance and Modernize

Network Infrastructure

BANDAACEH PALEMBANG DENPASAR KUPANG DLI  BDRLAMPUNG MANADO FAKFAK JAYAPURA PALU PBR PONTIANAK BANDUNG AMBON SORONG BALIKPAPAN JAKARTA BATAM MATARAM PAREPARE SAMARNDA SINGAPORE PENANG SATUN SEMARANG BANJARMASIN MAKASAR SURABAYA ENDE MEDAN Songkhla

TIS (Thailand)

SANGATA BATURAJA DMCS,  BENGKULU WAINGAPU KETAPANG PKL.BUN AAG (Hongkong, USA)

JAMBI

TERNATE

IP Core Link : ‐170 GBps‐

8 pair Core Router 8 x 2 x 10 GBps

& 1 x 10 GBps

IP Core Link :

‐170 GBps‐ 8 pair Core Router

8 x 2 x 10 GBps & 1 x 10 GBps

International Link :

34.5 GBps

International Link :

34.5 GBps

TIMIKA

MERAUKE Main IP Core Link :

‐465.6 GBps‐

3 pair Terra Router 3 x 2 x 77.6 GBps

Main IP Core Link :

‐465.6 GBps‐

3 pair Terra Router 3 x 2 x 77.6 GBps

AAG Consortium : Development of 


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Cellular Business

FY09  FY10 Growth (%)   

Cellular

 Subscribers (mn) 81.6 94.015%

 BTS (unit) 30,992 36,55718%

 MoU (Bnminutes) 130.3 128.61%

 ARPU – blended (Rp’000) 48 4213%

 Revenue (RpBn)* 28,533 ** 29,1342%

As of December 31, 2010, we remained the largest national licensed provider of  cellular services in Indonesia with around 46% market share.

Note : *) Cellular revenue including monthly, usage and features


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Broadband Business

FY09 FY10 Growth (%)   

Fixed broadband/Speedy:

 Subscribers (‘000) 1,145 1,64944%

 Revenue (RpBn) 2,601 3,58938%

Mobile broadband/Flash:

 User (‘000)  1,665 3,796128%

 Revenue (RpBn) 542 98682%

Through INSYNC 2014, we implement all IP‐based next generation networks; shift  to leaner operations with a strong focus on managing the customer experience  and develop multiplay and convergent services, with broadband as the key  driver.

We dominated the broadband business in Indonesia with approximately 


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Fixed Line Business

FY09 FY10 Growth (%)   

Fixed Wireline

 Line in Service/LIS (mn) 8.38 8.301%

 ARPU (‘000) 109 1054%

Fixed Wireless / Flexi

 Subscribers (mn) 15.1 18.221%

 BTS (unit) 5,543 5,6412%

 MoU (Bnminutes) 16 1225%

 ARPU – blended (Rp’000) 22 1627%

Fixed Line Revenues (RpBn)* 14,286 ** 12,9409%

At a time when the over‐whelming consumer preference for mobile telephony has led  to a slowing in the decline of fixed line revenues, our fixed wirelinebusiness managed  to outperform expectations by slowing the rate of decline in 2010 to single digits. 

Note : *) Fixed Line revenues including monthly, usage and installation charges 


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Financial Highlights

Telkom Indonesia strong financial positionenables us to pursue strategic 

investment to enhance both the capacity and quality of our core network capability  and infrastructure.

(in Rp Tn) FY09* FY10 Growth YoY (%)

Balance Sheet

Total Assets 97.8 99.82%

Total Liabilities 48.2 43.310%

Minority Interest 10.9 12.010%

Total Equity 38.7 44.415%

Profit & Loss Statement

Operating Revenues 67.7 68.6  1%

Operating Expenses 44.9 46.1  3%

EBITDA** 36.8 37.1  1%

EBITDA Margin (%) 54 54

Net Income 11.4 11.5  1%

Net Income/Share (Rp) 580 587  1%

Note :  *) As Restated, with the implementation of PPSAK 1.


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Income Statement

(1/2)

Revenue contribution to total revenues

Total revenues 

Rp68.6 Tn

4 2 %

2 7%

2 1%

4 2 %

2 9 %

19 %

2 % 3 % 6 %

2 % 2 %

5%

C ellular D at a, Int er net & IT

F ixed Line Int er co n * ) N et wo r k O t her

FY09 FY10 28.5 29.1

18.5 19.8

14.3 12.9

3.9 3.7

1.2 1.1 1.3 2.0

Note: *)In accordance with the change in accounting treatment from net to gross (PPSAKNo.1) in 2010,  we present outgoing interconnection revenue on gross basis as part of operating revenues.  The 2009 presentation is reclassified to conform with the current standard.

(in Rptrillion)

In FY10, Data, Internet & IT services revenues contributed 29%29%to total revenues  (growth 7% YoY)


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Income Statement

(2/2)

Expense contribution to total expenses

Total expenses

Rp46.1 Tn

3 2 % 3 1 %

1 9 %

3 5 %

3 2 %

1 6 %

7 % 7 % 6 % 5 % 5 % 5 %

O&M Depr & Amor t Per sonnel Inter con *) G&A Mar keti ng

FY09

FY10

14.5 16.0

13.9 14.6

8.5 7.5

2.9 3.1 2.6 2.4 2.3 2.5

(in Rptrillion)

Expense was manageable, personnel and G&A expenses has decreasedby 12%12%  and 11%11%,  respectively 


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Additional Information

Telkom

Rp3,623 Bn

TELKOMSEL

Rp8,197 Bn

Other subsidiaries

Rp831 

Rp831 BnBn(7%)(7%)

30%

28% 66%

65%

FY09 FY10

12,651 19,161

Total (Rp Bn)

T ot a l Ca pe x Alloc a t ion

6.6

%

21,138 23,154

FY09

FY10

T e lk om I ndone sia e m ploye e s

(as a parent company)

The decreasing size of our workforce reflects the  impact of our multi‐exit programs, particularly early  retirement programs implemented since 2002.


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Contact Address : Investor Relations

GrhaCitra Caraka5thfloor

Jl. Jend. GatotSubrotoKav. 52 Jakarta, 12710

Indonesia

Tel  : +62‐21‐5215109 Fax : +62‐21‐5220500

Email : investor@telkom.co.id Website: www.telkom.co.id

Any further questions?


(1)

Financial Highlights

Telkom Indonesia strong financial position

enables

 

us

 

to

 

pursue

 

strategic

 

investment

 

to

 

enhance

 

both

 

the

 

capacity

 

and

 

quality

 

of

 

our

 

core

 

network

 

capability

 

and

 

infrastructure.

(in

 

Rp

Tn

)

FY09*

FY10 Growth

 

YoY

(%)

Balance Sheet

Total

 

Assets

97.8

99.8

2%

Total

 

Liabilities

48.2

43.3

10%

Minority

 

Interest

10.9

12.0

10%

Total

 

Equity

38.7

44.4

15%

Profit & Loss Statement

Operating

 

Revenues

67.7

68.6

1%

Operating

 

Expenses

44.9

46.1

3%

EBITDA**

36.8

37.1

1%

EBITDA

 

Margin

 

(%)

54

54

Net

 

Income

11.4

11.5

1%


(2)

13

Income Statement

(1/2)

Revenue

 

contribution

 

to

 

total

 

revenues

Total

 

revenues

 

Rp68.6

 

Tn

4 2 %

2 7%

2 1%

4 2 %

2 9 %

19 %

2 % 3 %

6 %

2 % 2 %

5%

C ellular D at a, Int er net & IT

F ixed Line Int er co n * ) N et wo r k O t her

FY09

FY10

28.5 29.1

18.5 19.8

14.3 12.9

3.9 3.7

1.2 1.1

1.3 2.0

Note: *)In accordance with the change in accounting treatment from net to gross (PPSAKNo.1) in 2010,  we present outgoing interconnection revenue on gross basis as part of operating revenues.  The 2009 presentation is reclassified to conform with the current standard.

(in Rptrillion)

In

 

FY10,

 

Data,

 

Internet

 

&

 

IT

 

services

 

revenues

 

contributed

 29%

29%

to

 

total

 

revenues

 

(growth

 

7%

 

YoY)


(3)

Income Statement

(2/2)

Expense

 

contribution

 

to

 

total

 

expenses

Total

 

expenses

Rp46.1

 

Tn

3 2 % 3 1 %

1 9 % 3 5 %

3 2 %

1 6 %

7 % 7 % 6 % 5 % 5 % 5 %

O&M Depr & Amor t Per sonnel Inter con *) G&A Mar keti ng

FY09

FY10

14.5 16.0

13.9 14.6

8.5

7.5

2.9

3.1

2.6

2.4

2.3

2.5

(in Rptrillion)

Expense

 

was

 

manageable,

 

personnel

 

and

 

G&A

 

expenses

 

has

 

decreased

by

 

12%

12%

 and

 

11%

11%

,

 

respectively

 


(4)

15

Additional Information

Telkom

Rp3,623

 

Bn

TELKOMSEL

Rp8,197

 

Bn

Other

 

subsidiaries

Rp831

 

Rp831

 

Bn

Bn

(7%)

(7%)

30% 28% 66% 65%

FY09

FY10

12,651

19,161

Total

 

(Rp

 

Bn)

T ot a l Ca pe x Alloc a t ion

6.6%

21,138 23,154

FY09

FY10

T e lk om I ndone sia e m ploye e s

(as a parent company)

The

 

decreasing

 

size

 

of

 

our

 

workforce

 

reflects

 

the

 

impact

 

of

 

our

 

multi

exit

 

programs,

 

particularly

 

early

 

retirement

 

programs

 

implemented

 

since

 

2002.


(5)

(6)

Contact

 

Address

 

:

Investor Relations

Grha

Citra Caraka

5

th

floor

Jl. Jend. Gatot

Subroto

Kav. 52

Jakarta, 12710

Indonesia

Tel 

: +62‐21‐5215109

Fax

: +62‐21‐5220500

Email

: investor@telkom.co.id

Website: www.telkom.co.id