Indosat 1Q17 Final
PT. Indosat Tbk.
First Quarter 2017 Results
Our Strategy Direction
to be survive in this market and competition
Building a strong
organization with strong
execution capability
Digital Partner
Being a strong interface
for our digital partners
PT Indosat Tbk – 1Q 2017 Results
2
All players are directing toward “Digital Telco”
Indonesia’s
Leading Digital
Telco
PT Indosat Tbk – 1Q 2017 Results
The King of
Digital
3
We have been doing our part in digital space
Building the best digital infrastructure in our presence (4G)
We redefine our digital partnership
We attempt to build end to end digital experience for our customer
PT Indosat Tbk – 1Q 2017 Results
4
How we differentiate to outperform the
competition
To become the best and preferred Telco partner for all digital
company (local and international). Focus on core (cellular, B2B,
FTTH) profitability, no investment/resources allocation on non core
business
As a “Best Brother” to grow digital business
To become telco company with the best Digital Touch Point for our
external stakeholder (Consumer & B2B) as well as internal staff
Building completely digital ecosystem
To have the fastest revenue growth in B2B ICT business by being
digital corporate partner
Re-incumbent ICT market place
To become telco company with best digital customer experience
where we have coverage
Customer focus in our presence
To become the most attractive and preferred telco company to work
for the next generation
Less people more caliber
PT Indosat Tbk – 1Q 2017 Results
5
Financial and
Operational Highlights
1Q17 YoY Overview
Consolidated Revenue increased 7.0%
from IDR 6,813 billion to IDR 7,290 billion
EBITDA increased 4.7% from IDR 2,961
billion to IDR 3,100 billion, EBITDA Margin
reached 42.5%
Profit Attributable to Owners of The Parent
decreased from IDR 217 billion to IDR 174
billion
Free Cash Flow increased from IDR 463
billion to IDR 1,051 billion
PT Indosat Tbk – 1Q 2017 Results
7
1Q17 QoQ Overview
Consolidated Revenue decreased 4.8%
from IDR 7,660 billion to IDR 7,290 billion
EBITDA decreased 8.8% from IDR 3,398
billion to IDR 3,100 billion, EBITDA Margin
reached 42.5%
Profit Attributable to Owners of The Parent
decreased 33.0% from IDR 260 billion to
IDR 174 billion
Free Cash Flow increased from negative
IDR186 billion to IDR1,051 billion
PT Indosat Tbk – 1Q 2017 Results
8
Financial Highlights
1Q-16
1Q-17
YoY
4Q-16
1Q-17
QoQ
Operating Revenue
6,813
7,290
7.0%
7,660
7,290
-4.8%
EBITDA
2,961
3,100
4.7%
3,398
3,100
-8.8%
42.5% -1.0ppt
44.4%
42.5%
-1.9ppt
-19.9%
260
174
-33.0%
in IDR billion
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
•
43.5%
217
174
Revenue growth, EBITDA margin and profitability maintained despite seasonality
impact.
PT Indosat Tbk – 1Q 2017 Results
9
Segment Revenue Overview
Operating Revenue Breakdown
in IDR billion
-4.8% QoQ
+7.0% YoY
6,813
228
909
•
•
7,129
7,583
226
238
266
989
1,044
1,190
6,301
6,204
6,051
3Q-16
4Q-16
1Q-17
5,676
5,914
1Q-16
2Q-16
Fixed Voice
QoQ / YoY
7,660
Fixed Data
7,290
241
-9.4% / +5.7%
998
-16.1% / +9.9%
-2.5% / +6.6%
Cellular
Cellular revenue decline QoQ due to seasonality impact in 1Q.
Solid YoY growth in fixed data segment supported by IT services.
PT Indosat Tbk – 1Q 2017 Results
10
Cellular Revenue Performance
1Q-17
vs
1Q-16
1Q-17
Vs
4Q-16
Voice
-4.8%
-6.6%
SMS
-10.9%
-11.5%
Data
40.5%
13.1%
VAS
32.2%
-13.1%
PT Indosat Tbk – 1Q 2017 Results
- Data took the lead in driving the cellular
revenue growth.
- Voice service through apps started to
replace traditional voice service.
- Data messaging service replaced
traditional SMS further.
Digital business initiatives continued to find its
form to generate growth
11
Cellular Customer Base
Number of cellular customers
in million
Net cellular customers additions
in million
+37.0% YoY
80.5
+11.6% QoQ
85.7
81.6
10.7
95.6
10.0
69.8
4.0
1.1
0.1
1Q-16
2Q-16
3Q-16
4Q-16
PT Indosat Tbk – 1Q 2017 Results
1Q-17
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
12
ARPU and voice usage indicator
ARPU and ARPM
in thousand IDR
(ARPU)
137
in IDR
(ARPM)
126
123
124
in minute/subscriber
(MOU)
71
66
68
125
57
-11.3% QoQ
+10.3% YoY
-7.3% QoQ
26.4
25.5
24.2
24.5
21.7
14.5
15.6
16.6
16.6
15.3
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
ARPU
•
in billion minutes
(Voice Traffic)
69
-17.8% YoY
•
Voice Traffic and MOU
ARPM
Voice Traffic
MOU
Significant customers additions may take time to generate usage and eventually
drive up ARPU.
Total voice traffic was growing coming from customers additions.
PT Indosat Tbk – 1Q 2017 Results
13
Strong Data Usage
Data Usage
SMS Delivered
in TByte
in billion
+227.6% YoY
+11.4% QoQ
-29.8% YoY
-15.4% QoQ
209,591
188,101
52
55
49
44
146,060
37
93,641
63,987
1Q-16
•
•
2Q-16
3Q-16
4Q-16
1Q-17
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
Quarterly data revenue grew faster than traffic growth, showing better data monetization
SMS traffic continued to decline as trend shifting toward messaging application.
PT Indosat Tbk – 1Q 2017 Results
14
Operational expenses
as percentage of revenue
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
40.4%
41.4%
40.6%
40.9%
42.6%
Personnel
7.8%
7.3%
6.8%
7.2%
8.2%
Marketing
4.7%
4.9%
4.0%
3.5%
3.6%
General and Administration
3.7%
3.2%
3.5%
4.0%
3.1%
56.5%
56.8%
54.9%
55.6%
57.5%
32.6%
31.3%
29.9%
29.4%
30.5%
89.1%
88.1%
84.8%
85.1%
88.0%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Larger network coverage drove increase in cost of service expense.
Moderated operational expenses relative to revenue.
PT Indosat Tbk – 1Q 2017 Results
15
EBITDA and Net Profit performance
EBITDA and EBITDA margin
in IDR billion
in IDR billion
43.5%
43.2%
45.2%
44.4%
3,080
3,425
42.5%
-8.8% QoQ
+4.7% YoY
2,961
Net profit
3,398
+147.7% YoY
-19.9% YoY
3,100
217
2Q-16
1Q-16
EBITDA
3Q-16
174
4Q-16
1Q-17
EBITDA Margin
-456
1Q-15
•
•
1Q-16
1Q-17
EBITDA margin inline with guidance.
Profitability maintained.
PT Indosat Tbk – 1Q 2017 Results
16
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
Net debt* and net debt/EBITDA
in IDR billion
2.73
2.39
2.19
1.97
1.84
1.68
-12.0% YoY
27,398
25,913
1Q-15
1Q-16
Gross Debt
-10.7% YoY
22,798
23,924
23,331
20,839
1Q-17
1Q-15
1Q-16
1Q-17
Gross Debt/EBITDA
Net Debt
Net Debt/EBITDA
* IDR 4.07tn, IDR 3.76tn and IDR 3.44tn of obligation under finance lease are included in 1Q15, 1Q16 and 1Q17 respectively
•
Currency mixed has improved and shall continue toward lower USD debt portion
followed by further downward debt level
PT Indosat Tbk – 1Q 2017 Results
17
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in IDR billion
in IDR billion
in %
47.2
3,616
14.8
1,307
1,051
877
8.5
8.2
557
463
15.1
1,057
1,147
622
-186
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
1Q-16
2Q-16
3Q-16
Capex (Spent)
•
4Q-16
1Q-17
Capex/Revenue
Capex spent for 1Q-2017 was in line with guidance
PT Indosat Tbk – 1Q 2017 Results
18
Network & Data User
Number of BTS
+11.2% YoY
Data User
+3.0% QoQ
52,326
53,333
54,212
56,483
3,544
3,724
4,080
4,717
In million
+31.7% YoY
58,175
5,446
35.1
+1.5% QoQ
39.4
40.5
41.1
3Q-16
4Q-16
1Q-17
31.2
25,068
25,816
26,273
27,724
28,510
23,714
23,793
23,859
24,042
24,219
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
4G
•
3G
1Q-16
2Q-16
2G
4G coverage has reached 136 cities and counting
PT Indosat Tbk – 1Q 2017 Results
19
Management focus
& Key updates
Management Focus
● 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
● Continue to build operational excellence
and efficiency as part of the company
culture
● 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.
PT Indosat Tbk – 1Q 2017 Results
21
2017 Guidance
FY-16
Actual
Consolidated Revenue Growth
EBITDA Margin
CAPEX
PT Indosat Tbk – 1Q 2017 Results
2017
Guidance
9.0%
In line with market
44.1%
Low to Mid 40’s
IDR 7.3 trillion
(Cash out)
~ IDR 6 trillion
(Spent)
22
Thank You
Investor Relations & Corporate Secretary
Jl. Medan Merdeka Barat No. 21
Jakarta - 10110
Tel: +62 21 30442615
Investor@indosatooredoo.com
Supplemental
Information
IM2 case development
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
done based on a quotation of the Supreme Court’s Decision, which
states, among others, that (i) Mr. Indar Atmanto is found guilty and
sentenced to eight years imprisonment and charged with penalty of
Rp300,000,000,- (if the penalty is not paid, Mr. Indar Atmanto would
serve an additional six months imprisonment), and (ii) IM2 pay the
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.
PT Indosat Tbk – 1Q 2017 Results
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.
25
Credit ratings
On 12 May 2017, Moody's Investors Service has has upgraded to Baa3 from Ba1 the
issuer rating of Indosat Tbk. (P.T.) (Indosat Ooredoo). The outlook for the rating is stable.
At the same time, Moody's has withdrawn the company's Ba1 Corporate Family Rating.
The rating upgrade reflects the continued strengthening of Indosat Ooredoo's operational
metrics as well as the ongoing stabilization of its financial profile, including lower leverage
levels.
On 17 March 2017, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk (ISAT)
and its Shelf Registration Bond I/2014-2016, Bond VIII/2012, and Bond V/2007 Serie B.
PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s Shelf Registration Sukuk
Ijarah I/2014-2016 and Sukuk Ijarah V/2012. PEFINDO has also assigned its “idAAA” and
“idAAA(sy)” ratings to ISAT’s Shelf Registration Bond II/2017-2019 of a maximum of IDR9
trillion and Shelf Registration Sukuk Ijarah II/2017-2019 of a maximum of IDR1 trillion,
including the first phase issuance of IDR2.7 trillion Shelf Registration Bond II/2017 and
IDR0.3 trillion Shelf Registration Sukuk Ijarah II/2017.
On 10 March 2017, Fitch Ratings has upgraded PT Indosat Tbk's (Indosat Ooredoo) LongTerm Foreign-Currency Issuer Default Rating (IDR) and foreigncurrency senior unsecured
debt rating to 'BBB+' from 'BBB' and simultaneously affirmed its LongTerm Local Currency
IDR at 'BBB+'. Fitch Ratings Indonesia has also affirmed the National LongTerm Rating at
'AAA(idn)'. The Outlook is Stable.
On January 17, 2017, S&P Global Ratings affirmed its 'BB+' long-term corporate credit
rating on PT Indosat Tbk. The outlook remains positive. At the same time, they affirmed
their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based
telecommunications company.
PT Indosat Tbk – 1Q 2017 Results
26
Debt maturity profile*
In IDR trillion
4.74
3.82
2.46
2.08
1.50
1.10
1.58
2017
0.81
0.27
0.27
2018
2019
0.36
0.12
2020
2021
2022
2023
2024
0.26
2025
2026
IDR
USD in IDR
* Excluding obligation under capital lease
PT Indosat Tbk – 1Q 2017 Results
27
Spectrum overview
in Mhz
Number of BTS850 Mhz
900 Mhz
1800 Mhz
2100 Mhz
2 x 2.5
2 x 10.0
2 x 20.0
2 x 10.0
2020
2020
2020
2 x 4.5
2 x 7.5
2 x 22.5
2 x 15.0
15.0
XL Axiata
-
2 x 7.5
2 x 22.5
2 x 15.0
-
Hutchison
-
-
2 x 10.0
2 x 10.0
-
Indosat
Valid until
Telkomsel
2019 & 2026
2300 Mhz
15.0*
2019
* Indosat/IM2: West Java exclude Bogor, Depok & Bekasi
PT Indosat Tbk – 1Q 2017 Results
28
Disclaimer
•
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
•
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:
•
The Company’s ability to manage domestic and international growth and maintain a high level of
customer service
•
Future sales growth
•
Market acceptance of the Company’s product and service offerings
•
The Company’s ability to secure adequate financing or equity capital to fund our operations
•
Network expansion
•
Performance of the Company’s network and equipment
•
The Company’s ability to enter into strategic alliances or transactions
•
Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our
equipment
•
Regulatory approval processes
•
Changes in technology
•
Price competition
•
Other market conditions and associated risks
•
The company undertakes no obligation to update publicly any forward-looking statements, whether as a result
of future events, new information, or otherwise
PT Indosat Tbk – 1Q 2017 Results
29
First Quarter 2017 Results
Our Strategy Direction
to be survive in this market and competition
Building a strong
organization with strong
execution capability
Digital Partner
Being a strong interface
for our digital partners
PT Indosat Tbk – 1Q 2017 Results
2
All players are directing toward “Digital Telco”
Indonesia’s
Leading Digital
Telco
PT Indosat Tbk – 1Q 2017 Results
The King of
Digital
3
We have been doing our part in digital space
Building the best digital infrastructure in our presence (4G)
We redefine our digital partnership
We attempt to build end to end digital experience for our customer
PT Indosat Tbk – 1Q 2017 Results
4
How we differentiate to outperform the
competition
To become the best and preferred Telco partner for all digital
company (local and international). Focus on core (cellular, B2B,
FTTH) profitability, no investment/resources allocation on non core
business
As a “Best Brother” to grow digital business
To become telco company with the best Digital Touch Point for our
external stakeholder (Consumer & B2B) as well as internal staff
Building completely digital ecosystem
To have the fastest revenue growth in B2B ICT business by being
digital corporate partner
Re-incumbent ICT market place
To become telco company with best digital customer experience
where we have coverage
Customer focus in our presence
To become the most attractive and preferred telco company to work
for the next generation
Less people more caliber
PT Indosat Tbk – 1Q 2017 Results
5
Financial and
Operational Highlights
1Q17 YoY Overview
Consolidated Revenue increased 7.0%
from IDR 6,813 billion to IDR 7,290 billion
EBITDA increased 4.7% from IDR 2,961
billion to IDR 3,100 billion, EBITDA Margin
reached 42.5%
Profit Attributable to Owners of The Parent
decreased from IDR 217 billion to IDR 174
billion
Free Cash Flow increased from IDR 463
billion to IDR 1,051 billion
PT Indosat Tbk – 1Q 2017 Results
7
1Q17 QoQ Overview
Consolidated Revenue decreased 4.8%
from IDR 7,660 billion to IDR 7,290 billion
EBITDA decreased 8.8% from IDR 3,398
billion to IDR 3,100 billion, EBITDA Margin
reached 42.5%
Profit Attributable to Owners of The Parent
decreased 33.0% from IDR 260 billion to
IDR 174 billion
Free Cash Flow increased from negative
IDR186 billion to IDR1,051 billion
PT Indosat Tbk – 1Q 2017 Results
8
Financial Highlights
1Q-16
1Q-17
YoY
4Q-16
1Q-17
QoQ
Operating Revenue
6,813
7,290
7.0%
7,660
7,290
-4.8%
EBITDA
2,961
3,100
4.7%
3,398
3,100
-8.8%
42.5% -1.0ppt
44.4%
42.5%
-1.9ppt
-19.9%
260
174
-33.0%
in IDR billion
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
•
43.5%
217
174
Revenue growth, EBITDA margin and profitability maintained despite seasonality
impact.
PT Indosat Tbk – 1Q 2017 Results
9
Segment Revenue Overview
Operating Revenue Breakdown
in IDR billion
-4.8% QoQ
+7.0% YoY
6,813
228
909
•
•
7,129
7,583
226
238
266
989
1,044
1,190
6,301
6,204
6,051
3Q-16
4Q-16
1Q-17
5,676
5,914
1Q-16
2Q-16
Fixed Voice
QoQ / YoY
7,660
Fixed Data
7,290
241
-9.4% / +5.7%
998
-16.1% / +9.9%
-2.5% / +6.6%
Cellular
Cellular revenue decline QoQ due to seasonality impact in 1Q.
Solid YoY growth in fixed data segment supported by IT services.
PT Indosat Tbk – 1Q 2017 Results
10
Cellular Revenue Performance
1Q-17
vs
1Q-16
1Q-17
Vs
4Q-16
Voice
-4.8%
-6.6%
SMS
-10.9%
-11.5%
Data
40.5%
13.1%
VAS
32.2%
-13.1%
PT Indosat Tbk – 1Q 2017 Results
- Data took the lead in driving the cellular
revenue growth.
- Voice service through apps started to
replace traditional voice service.
- Data messaging service replaced
traditional SMS further.
Digital business initiatives continued to find its
form to generate growth
11
Cellular Customer Base
Number of cellular customers
in million
Net cellular customers additions
in million
+37.0% YoY
80.5
+11.6% QoQ
85.7
81.6
10.7
95.6
10.0
69.8
4.0
1.1
0.1
1Q-16
2Q-16
3Q-16
4Q-16
PT Indosat Tbk – 1Q 2017 Results
1Q-17
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
12
ARPU and voice usage indicator
ARPU and ARPM
in thousand IDR
(ARPU)
137
in IDR
(ARPM)
126
123
124
in minute/subscriber
(MOU)
71
66
68
125
57
-11.3% QoQ
+10.3% YoY
-7.3% QoQ
26.4
25.5
24.2
24.5
21.7
14.5
15.6
16.6
16.6
15.3
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
ARPU
•
in billion minutes
(Voice Traffic)
69
-17.8% YoY
•
Voice Traffic and MOU
ARPM
Voice Traffic
MOU
Significant customers additions may take time to generate usage and eventually
drive up ARPU.
Total voice traffic was growing coming from customers additions.
PT Indosat Tbk – 1Q 2017 Results
13
Strong Data Usage
Data Usage
SMS Delivered
in TByte
in billion
+227.6% YoY
+11.4% QoQ
-29.8% YoY
-15.4% QoQ
209,591
188,101
52
55
49
44
146,060
37
93,641
63,987
1Q-16
•
•
2Q-16
3Q-16
4Q-16
1Q-17
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
Quarterly data revenue grew faster than traffic growth, showing better data monetization
SMS traffic continued to decline as trend shifting toward messaging application.
PT Indosat Tbk – 1Q 2017 Results
14
Operational expenses
as percentage of revenue
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
40.4%
41.4%
40.6%
40.9%
42.6%
Personnel
7.8%
7.3%
6.8%
7.2%
8.2%
Marketing
4.7%
4.9%
4.0%
3.5%
3.6%
General and Administration
3.7%
3.2%
3.5%
4.0%
3.1%
56.5%
56.8%
54.9%
55.6%
57.5%
32.6%
31.3%
29.9%
29.4%
30.5%
89.1%
88.1%
84.8%
85.1%
88.0%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Larger network coverage drove increase in cost of service expense.
Moderated operational expenses relative to revenue.
PT Indosat Tbk – 1Q 2017 Results
15
EBITDA and Net Profit performance
EBITDA and EBITDA margin
in IDR billion
in IDR billion
43.5%
43.2%
45.2%
44.4%
3,080
3,425
42.5%
-8.8% QoQ
+4.7% YoY
2,961
Net profit
3,398
+147.7% YoY
-19.9% YoY
3,100
217
2Q-16
1Q-16
EBITDA
3Q-16
174
4Q-16
1Q-17
EBITDA Margin
-456
1Q-15
•
•
1Q-16
1Q-17
EBITDA margin inline with guidance.
Profitability maintained.
PT Indosat Tbk – 1Q 2017 Results
16
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
Net debt* and net debt/EBITDA
in IDR billion
2.73
2.39
2.19
1.97
1.84
1.68
-12.0% YoY
27,398
25,913
1Q-15
1Q-16
Gross Debt
-10.7% YoY
22,798
23,924
23,331
20,839
1Q-17
1Q-15
1Q-16
1Q-17
Gross Debt/EBITDA
Net Debt
Net Debt/EBITDA
* IDR 4.07tn, IDR 3.76tn and IDR 3.44tn of obligation under finance lease are included in 1Q15, 1Q16 and 1Q17 respectively
•
Currency mixed has improved and shall continue toward lower USD debt portion
followed by further downward debt level
PT Indosat Tbk – 1Q 2017 Results
17
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in IDR billion
in IDR billion
in %
47.2
3,616
14.8
1,307
1,051
877
8.5
8.2
557
463
15.1
1,057
1,147
622
-186
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
1Q-16
2Q-16
3Q-16
Capex (Spent)
•
4Q-16
1Q-17
Capex/Revenue
Capex spent for 1Q-2017 was in line with guidance
PT Indosat Tbk – 1Q 2017 Results
18
Network & Data User
Number of BTS
+11.2% YoY
Data User
+3.0% QoQ
52,326
53,333
54,212
56,483
3,544
3,724
4,080
4,717
In million
+31.7% YoY
58,175
5,446
35.1
+1.5% QoQ
39.4
40.5
41.1
3Q-16
4Q-16
1Q-17
31.2
25,068
25,816
26,273
27,724
28,510
23,714
23,793
23,859
24,042
24,219
1Q-16
2Q-16
3Q-16
4Q-16
1Q-17
4G
•
3G
1Q-16
2Q-16
2G
4G coverage has reached 136 cities and counting
PT Indosat Tbk – 1Q 2017 Results
19
Management focus
& Key updates
Management Focus
● 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
● Continue to build operational excellence
and efficiency as part of the company
culture
● 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.
PT Indosat Tbk – 1Q 2017 Results
21
2017 Guidance
FY-16
Actual
Consolidated Revenue Growth
EBITDA Margin
CAPEX
PT Indosat Tbk – 1Q 2017 Results
2017
Guidance
9.0%
In line with market
44.1%
Low to Mid 40’s
IDR 7.3 trillion
(Cash out)
~ IDR 6 trillion
(Spent)
22
Thank You
Investor Relations & Corporate Secretary
Jl. Medan Merdeka Barat No. 21
Jakarta - 10110
Tel: +62 21 30442615
Investor@indosatooredoo.com
Supplemental
Information
IM2 case development
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
done based on a quotation of the Supreme Court’s Decision, which
states, among others, that (i) Mr. Indar Atmanto is found guilty and
sentenced to eight years imprisonment and charged with penalty of
Rp300,000,000,- (if the penalty is not paid, Mr. Indar Atmanto would
serve an additional six months imprisonment), and (ii) IM2 pay the
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.
PT Indosat Tbk – 1Q 2017 Results
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.
25
Credit ratings
On 12 May 2017, Moody's Investors Service has has upgraded to Baa3 from Ba1 the
issuer rating of Indosat Tbk. (P.T.) (Indosat Ooredoo). The outlook for the rating is stable.
At the same time, Moody's has withdrawn the company's Ba1 Corporate Family Rating.
The rating upgrade reflects the continued strengthening of Indosat Ooredoo's operational
metrics as well as the ongoing stabilization of its financial profile, including lower leverage
levels.
On 17 March 2017, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk (ISAT)
and its Shelf Registration Bond I/2014-2016, Bond VIII/2012, and Bond V/2007 Serie B.
PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s Shelf Registration Sukuk
Ijarah I/2014-2016 and Sukuk Ijarah V/2012. PEFINDO has also assigned its “idAAA” and
“idAAA(sy)” ratings to ISAT’s Shelf Registration Bond II/2017-2019 of a maximum of IDR9
trillion and Shelf Registration Sukuk Ijarah II/2017-2019 of a maximum of IDR1 trillion,
including the first phase issuance of IDR2.7 trillion Shelf Registration Bond II/2017 and
IDR0.3 trillion Shelf Registration Sukuk Ijarah II/2017.
On 10 March 2017, Fitch Ratings has upgraded PT Indosat Tbk's (Indosat Ooredoo) LongTerm Foreign-Currency Issuer Default Rating (IDR) and foreigncurrency senior unsecured
debt rating to 'BBB+' from 'BBB' and simultaneously affirmed its LongTerm Local Currency
IDR at 'BBB+'. Fitch Ratings Indonesia has also affirmed the National LongTerm Rating at
'AAA(idn)'. The Outlook is Stable.
On January 17, 2017, S&P Global Ratings affirmed its 'BB+' long-term corporate credit
rating on PT Indosat Tbk. The outlook remains positive. At the same time, they affirmed
their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based
telecommunications company.
PT Indosat Tbk – 1Q 2017 Results
26
Debt maturity profile*
In IDR trillion
4.74
3.82
2.46
2.08
1.50
1.10
1.58
2017
0.81
0.27
0.27
2018
2019
0.36
0.12
2020
2021
2022
2023
2024
0.26
2025
2026
IDR
USD in IDR
* Excluding obligation under capital lease
PT Indosat Tbk – 1Q 2017 Results
27
Spectrum overview
in Mhz
Number of BTS850 Mhz
900 Mhz
1800 Mhz
2100 Mhz
2 x 2.5
2 x 10.0
2 x 20.0
2 x 10.0
2020
2020
2020
2 x 4.5
2 x 7.5
2 x 22.5
2 x 15.0
15.0
XL Axiata
-
2 x 7.5
2 x 22.5
2 x 15.0
-
Hutchison
-
-
2 x 10.0
2 x 10.0
-
Indosat
Valid until
Telkomsel
2019 & 2026
2300 Mhz
15.0*
2019
* Indosat/IM2: West Java exclude Bogor, Depok & Bekasi
PT Indosat Tbk – 1Q 2017 Results
28
Disclaimer
•
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
•
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:
•
The Company’s ability to manage domestic and international growth and maintain a high level of
customer service
•
Future sales growth
•
Market acceptance of the Company’s product and service offerings
•
The Company’s ability to secure adequate financing or equity capital to fund our operations
•
Network expansion
•
Performance of the Company’s network and equipment
•
The Company’s ability to enter into strategic alliances or transactions
•
Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our
equipment
•
Regulatory approval processes
•
Changes in technology
•
Price competition
•
Other market conditions and associated risks
•
The company undertakes no obligation to update publicly any forward-looking statements, whether as a result
of future events, new information, or otherwise
PT Indosat Tbk – 1Q 2017 Results
29