Indosat 1Q16 Final
PT. Indosat Tbk.
First Quarter 2016 Results
Reborn Update
New Stream to focus on
Why
Change?
•
•
•
Increase Attractive to help the business
Quality perception and retention challenges
Faster growth, renewed sense of purpose
Market and consumers are evolving…
DIGITALIZATION is a new opportunity for us to win the market
We can leverage the Ooredoo brand to capture this opportunity
Innovative & global brand association
Technical & funding support
Data and digital leadership
The New Indosat Ooredoo Positioning & Streams
We are building Indonesia's
1
greater
Liberating products
& services
Affordability &
Accessibility
What does
this mean?
leading digital telco, enabling access and…
2
A data strong
network
4G LTE for Everybody
3
We treat our
customer like a friend
New Behavior & Customercentric Experience
✓ New look & feel! New logo & designs, reskinned Galeri/ outlets/ office/ materials
✓ Digital customer experience! Revamped digital touchpoints, Apps Corner
✓ New culture & behavior! Can-do attitude, Reform mindset: positive & curious
PT Indosat Tbk – 1Q 2016 Results
3
1
Liberating products & services
From High Variety package offer…
PT Indosat Tbk – 1Q 2016 Results
..Becoming Clear and Simple
package
4
2
A Data Strong Network
Indosat Ooredoo won Speedtest
Award for Fastest Mobile Network and
Fastest 4G Network in Indonesia
based on the results of tests
performed on Speedtest.net and
Speedtest mobile applications.
Network performance test results show
21.54 Mbps download speed and 9.43
Mbps upload speed
Speedtest rank cellular network based
on average download performance
with the fastest technology available in
Indonesia.
PT Indosat Tbk – 1Q 2016 Results
5
3
We treat our customer like a friend
0815XXXXXXX
Enrich customers touch point
for easiness and ability to
customize their own needs
PT Indosat Tbk – 1Q 2016 Results
6
Mobile Financial Services
Serving all customer segments
Mobile Banking
Telco Wallet
Micro Savings, loans
Pay with QR
OTT Wallet
Cash Management
Remittance
Mobile POS
PT Indosat Tbk – 1Q 2016 Results
Micro insurance
8
MFS trend
Transaction
Volume (in Million)
5.3
Number of Agent
Locations
154K
42
(Dec-14)
222K
(Dec-14)
(Dec-15)
(Dec-15)
Dec-15
IDR 2,500 Bn
63%
900%
Jan-15
IDR 64Bn
Number of Subscribers
(in Million)
Jan-14
IDR 27Bn
1,3
(Dec-14)
2,5
(Dec-15)
84%
PT Indosat Tbk – 1Q 2016 Results
Transaction Value
(in trillion IDR)
0,19
(Dec-14)
2,5
(Dec-15)
1000%
Active Agents
12k
115k
(Dec-14)
(Dec-15)
614%
9
Building biggest ever eco-payment system
Cash in
Cash out
Chain Stores
ATM Switching
Service
Payment
Billers
Airtime
Insurance
FIs
Online
Merchant
In Store
Payment
Transfer &
Remittance
MTO
Pay with
QR Codes
PT Indosat Tbk – 1Q 2016 Results
MNO
Classic Pizza Cone
Coffee Kulture
E-Claire Coffee
Rasa Sabananyo
Heidy’s Kitchen
Soho Conv. Store
Uncle Yaya’s
Steak
10
Financial and
Operational Highlights
1Q16 YoY Overview
Consolidated Revenue increased 11.8%
from IDR 6,093 billion to IDR 6,813 billion
EBITDA increased 13.7% from IDR 2,604
billion to IDR 2,961 billion, EBITDA Margin
reached 43.5%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 456 billion to a
profit of IDR 217 billion
Free Cash Flow decreased from IDR 587
billion to IDR 463 billion
PT Indosat Tbk – 1Q 2016 Results
12
1Q16 QoQ Overview
Consolidated Revenue decreased 5.2%
from IDR 7,187 billion to IDR 6,813 billion
EBITDA increased 1.9% from IDR 2,906
billion to IDR 2,961 billion, EBITDA Margin
reached 43.5%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 188 billion to a
profit of IDR 217 billion
Free Cash Flow increased from IDR -1,509
billion to IDR 463 billion
PT Indosat Tbk – 1Q 2016 Results
13
Financial Highlights
1Q-15
1Q-16
YoY
4Q-15
1Q-16
QoQ
Operating Revenue
6,093
6,813
11.8%
7,187
6,813
-5.2%
EBITDA
2,604
2,961
13.7%
2,906
2,961
1.9%
42.7%
43.5%
0.8ppt
40.4%
43.5%
3.1ppt
217 147.7%
-188
in IDR billion
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
•
•
-456
217 215.8%
Revenue and EBITDA continued to grow, supported by strong growth in cellular
revenue and cost management initiative that starts to deliver the result.
Bottom line has entered into positive territory due to stabilized currency.
PT Indosat Tbk – 1Q 2016 Results
14
Segment Revenue Overview
in IDR billion
Operating Revenue Breakdown
+11.8% YoY
QoQ / YoY
6,527
6,962
7,187
271
272
286
921
997
900
936
4,903
5,321
5,768
5,904
5,676
1Q-15
2Q-15
4Q-15
1Q-16
6,093
290
Fixed Voice
•
•
•
-5.2% QoQ
Fixed Data
3Q-15
6,813
228
-20.1% / -21.4%
908
-8.9% / +1.0%
-3.9% / +15.8%
Cellular
Strong data cellular revenue growth has driven up overall cellular business performance
IDR appreciation drove IDD revenue down and eventually brought down Fixed voice revenue QoQ and YoY.
Project related to government was stop caused a lower Fixed data revenue QoQ. However, revenue growth
YoY is still maintained.
PT Indosat Tbk – 1Q 2016 Results
15
Cellular Revenue Performance
Voice
YoY
QoQ
8.2%
-6.2%
SMS
13.3%
-8.3%
Data
45.5%
7.4%
VAS
21.8%
5.8%
PT Indosat Tbk – 1Q 2016 Results
- Healthy growth in all services YoY
- Seasonality impacted voice and sms revenue,
but data, supported by 4G network and
offering, continued to grow
Increased VAS usage from various gaming &
content packages
16
Cellular Customer Base
Number of cellular customers
in million
in million
+4.9% YoY
66.5
Net cellular customers additions
68.5
69.0
+0.1% QoQ
69.7
69.8
3.3
2.0
0.5
1Q-15
•
2Q-15
3Q-15
4Q-15
1Q-16
1Q-15
2Q-15
3Q-15
0.8
4Q-15
0.1
1Q-16
Number of customer continued to grow, shifting from acquisition mode to
monetization mode.
PT Indosat Tbk – 1Q 2016 Results
17
Improving ARPU
ARPU and ARPM
in thousand IDR
(ARPU)
140
145
Voice Traffic and MOU
in IDR
(ARPM)
143
135
in billion minutes
(Voice Traffic)
137
67
+9.9% YoY
in minute/subscriber
(MOU)
67
70
76
-5.3% QoQ
+9.8% YoY
-7.3% QoQ
24.0
25.3
26.9
27.9
26.4
13.2
13.5
14.6
15.6
14.5
1Q-15
2Q-15
3Q-15
4Q-15
1Q-16
1Q-15
2Q-15
3Q-15
4Q-15
1Q-16
ARPU
•
•
69
ARPM
Voice Traffic
MOU
ARPU grew inline with customer addition YoY
Voice traffic was growing due to our expansion in outside of Java area
PT Indosat Tbk – 1Q 2016 Results
18
Strong Data Usage
Data Usage
SMS Delivered
in TByte
in billion
+60.5% YoY
55,871
-6.8% YoY
+11.7% QoQ
57,276
-11.6% QoQ
63,987
56
60
62
1Q-15
2Q-15
3Q-15
46,027
59
52
39,880
1Q-15
•
•
2Q-15
3Q-15
4Q-15
1Q-16
4Q-15
1Q-16
Increase in data traffic continued driven by 4G data plan focused
SMS declined due to seasonality
PT Indosat Tbk – 1Q 2016 Results
19
Operational expenses
as percentage of revenue
1Q-15
2Q-15
3Q-15
4Q-15
1Q-16
42.9%
42.1%
40.5%
42.1%
40.4%
Personnel
7.4%
6.9%
6.8%
7.6%
7.8%
Marketing
3.0%
4.6%
3.8%
6.8%
4.7%
General and Administration
3.8%
4.2%
2.9%
3.0%
3.7%
57.3%
57.7%
54.0%
59.6%
56.5%
33.9%
32.2%
29.8%
35.1%
32.6%
91.2%
89.9%
83.8%
94.7%
89.1%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Moderated operational expenses
G&A ratio was higher due to professional fees related to new marketing strategy and
campaign being implemented
PT Indosat Tbk – 1Q 2016 Results
20
EBITDA performance
EBITDA and EBITDA margin
in IDR billion
42.7%
46.0%
42.3%
40.4%
+13.7% YoY
2,604
2,758
1Q-15
2Q-15
EBITDA
3,205
3Q-15
43.5%
+1.9% QoQ
2,906
2,961
EBITDA performance is supported by
strong revenue growth combined with
strict cost management initiative that
started to deliver result
4Q-15
1Q-16
EBITDA Margin
PT Indosat Tbk – 1Q 2016 Results
21
Net profit
Net profit
in IDR billion
-157.2% YoY
+147.7% YoY
797
•
Strong revenue growth, good cost
management and stabilized currency
resulted in positive net profit
217
-456
1Q-14*
1Q-15
1Q-16
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 1Q 2016 Results
22
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
Net debt* and net debt/EBITDA
in IDR billion
2.73
2.58
2.19
2.25
1.97
-5.4% YoY
27,174
1Q-14
Gross Debt
27,398
1Q-15
2.39
-2.5% YoY
25,913
23,649
23,924
23,331
1Q-16
1Q-14
1Q-15
1Q-16
Gross Debt/EBITDA
Net Debt
Net Debt/EBITDA
* IDR 3.73tn, IDR 4.07tn and IDR 3.76tn of obligation under finance lease are included in 1Q14, 1Q15 and 1Q16 respectively
•
•
Gearing level continuously improved
Reducing US debt portion is progressing
PT Indosat Tbk – 1Q 2016 Results
23
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in %
in IDR billion
in IDR billion
37.6
26.8
23.2
1,096
1,051
481
•
1,414
1,372
1Q-15
2Q-15
1,869
24.4
1,663
463
-1,509
1Q-15
21.1
2,699
2Q-15
3Q-15
4Q-15
1Q-16
Capex
3Q-15
4Q-15
1Q-16
Capex/Revenue
Moderated capex to revenue ratio as a result of price negotiation supported by
Ooredoo, the parent
PT Indosat Tbk – 1Q 2016 Results
24
Network & Data User
Number of BTS
+3.2% QoQ
+28.2% YoY
•
•
50,687
3,361
52,326
3,544
22,671
23,730
25,068
22,902
23,525
23,596
23,714
2Q-15
3Q-15
4Q-15
1Q-16
40,831
75
43,075
106
46,361
165
18,544
20,067
22,212
1Q-15
4G
Data User
3G
In million
+6.0% YoY
30.1
29.5
1Q-15
2Q-15
32.2
3Q-15
-8.0% QoQ
34.0
4Q-15
31.2
1Q-16
2G
Strong network performance to support data service
Shifting the focus from acquisition toward monetization
PT Indosat Tbk – 1Q 2016 Results
25
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 2016 Results
27
2016 Guidance
FY 2015 Actual
FY 2016 Guidance
Consolidated Revenue Growth
11.1%
In line with market
EBITDA Margin*
42.9%
Low to Mid 40’s
IDR 7.3 trillion
IDR 6.5 – 7.5 trillion
CAPEX
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 1Q 2016 Results
28
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 2016 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.
31
Credit ratings
On 15 March 2016, Fitch Ratings has upgraded the Long-Term Local-Currency Issuer
Default Rating (LC IDR) of Indonesia’s second-largest telecommunications operator, PT
Indosat Tbk (Indosat Ooredoo), to ‘BBB+’ from ‘BBB’. The agency has simultaneously
affirmed Indosat Ooredoo’s Long-Term Foreign-Currency IDR (FC IDR) and its foreigncurrency senior unsecured rating at ‘BBB’. Fitch has also affirmed the National Long-Term
Rating at ‘AAA(idn)’. The Outlook on the ratings is Stable.
On 25 January 2016, Standard & Poor's Ratings Services (“S&P”) affirmed its 'BB+‘ longterm corporate credit rating on PT Indosat Tbk. The outlook is positive. S&P also affirmed
their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based
telecommunications company. S&P affirmed the rating because they expect Indosat to
maintain its solid No.2 position in Indonesia's growing cellular market. The positive outlook
reflects their view that the company's financial risk profile will improve over the next 12-18
months.
On 21 October 2015, Moody's Investors Service says that PT Indosat Tbk's (Ba1 stable)
1H 2015 results were in line with their expectations, with continued improvement in
operating performance from the second half of 2014. The stable outlook reflects Moody's
expectation that Indosat will maintain its position as a leading mobile operator in
Indonesia amid increasing competition for data services, and leverage, in terms of
adjusted debt/EBITDA will remain in the 2.5x -3.0x range for the next 12 - 15 months as
Indosat continues its high capex for network modernization.
On 28 September 2015, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk
(ISAT) and its Shelf-Registered Bond I/2014-2016, Bonds V/2007 Serie B, Bonds VII/2009
Serie B, and Bonds VIII/2012. PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s
Sukuk Ijarah I/2014-2016, Sukuk Ijarah IV/2009 Serie B, and Sukuk Ijarah V/2012. The
outlook for the corporate rating is “stable”. The ratings reflect ISAT’s strong support from its
majority shareholder, strong market position, and stable operating performance.
PT Indosat Tbk – 1Q 2016 Results
32
Debt maturity profile*
In IDR trillion
3.83
4.38
2.92
2.27
2.08
1.21
2016
2.46
2017
0.27
0.27
0.95
2018
2019
2020
IDR
0.36
2021
2022
0.36
0.81
2024
2025
* Excluding obligation under capital lease
USD in IDR
PT Indosat Tbk – 1Q 2016 Results
33
Spectrum overview
in Mhz
Number of BTS850 Mhz
Indosat
900 Mhz
1800 Mhz
2100 Mhz
2300 Mhz
2.5
10.0
20.0
10.0
15.0**
3.5 – 5.0*
7.5
22.5
15.0
15.0**
XL Axiata
-
7.5
22.5
15.0
-
Hutchison
-
-
10.0
10.0
-
Telkomsel
* Telkom and Bakrie Telekom have the same spectrum, differentiated by its operational areas
** Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku
PT Indosat Tbk – 1Q 2016 Results
34
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 2016 Results
35
First Quarter 2016 Results
Reborn Update
New Stream to focus on
Why
Change?
•
•
•
Increase Attractive to help the business
Quality perception and retention challenges
Faster growth, renewed sense of purpose
Market and consumers are evolving…
DIGITALIZATION is a new opportunity for us to win the market
We can leverage the Ooredoo brand to capture this opportunity
Innovative & global brand association
Technical & funding support
Data and digital leadership
The New Indosat Ooredoo Positioning & Streams
We are building Indonesia's
1
greater
Liberating products
& services
Affordability &
Accessibility
What does
this mean?
leading digital telco, enabling access and…
2
A data strong
network
4G LTE for Everybody
3
We treat our
customer like a friend
New Behavior & Customercentric Experience
✓ New look & feel! New logo & designs, reskinned Galeri/ outlets/ office/ materials
✓ Digital customer experience! Revamped digital touchpoints, Apps Corner
✓ New culture & behavior! Can-do attitude, Reform mindset: positive & curious
PT Indosat Tbk – 1Q 2016 Results
3
1
Liberating products & services
From High Variety package offer…
PT Indosat Tbk – 1Q 2016 Results
..Becoming Clear and Simple
package
4
2
A Data Strong Network
Indosat Ooredoo won Speedtest
Award for Fastest Mobile Network and
Fastest 4G Network in Indonesia
based on the results of tests
performed on Speedtest.net and
Speedtest mobile applications.
Network performance test results show
21.54 Mbps download speed and 9.43
Mbps upload speed
Speedtest rank cellular network based
on average download performance
with the fastest technology available in
Indonesia.
PT Indosat Tbk – 1Q 2016 Results
5
3
We treat our customer like a friend
0815XXXXXXX
Enrich customers touch point
for easiness and ability to
customize their own needs
PT Indosat Tbk – 1Q 2016 Results
6
Mobile Financial Services
Serving all customer segments
Mobile Banking
Telco Wallet
Micro Savings, loans
Pay with QR
OTT Wallet
Cash Management
Remittance
Mobile POS
PT Indosat Tbk – 1Q 2016 Results
Micro insurance
8
MFS trend
Transaction
Volume (in Million)
5.3
Number of Agent
Locations
154K
42
(Dec-14)
222K
(Dec-14)
(Dec-15)
(Dec-15)
Dec-15
IDR 2,500 Bn
63%
900%
Jan-15
IDR 64Bn
Number of Subscribers
(in Million)
Jan-14
IDR 27Bn
1,3
(Dec-14)
2,5
(Dec-15)
84%
PT Indosat Tbk – 1Q 2016 Results
Transaction Value
(in trillion IDR)
0,19
(Dec-14)
2,5
(Dec-15)
1000%
Active Agents
12k
115k
(Dec-14)
(Dec-15)
614%
9
Building biggest ever eco-payment system
Cash in
Cash out
Chain Stores
ATM Switching
Service
Payment
Billers
Airtime
Insurance
FIs
Online
Merchant
In Store
Payment
Transfer &
Remittance
MTO
Pay with
QR Codes
PT Indosat Tbk – 1Q 2016 Results
MNO
Classic Pizza Cone
Coffee Kulture
E-Claire Coffee
Rasa Sabananyo
Heidy’s Kitchen
Soho Conv. Store
Uncle Yaya’s
Steak
10
Financial and
Operational Highlights
1Q16 YoY Overview
Consolidated Revenue increased 11.8%
from IDR 6,093 billion to IDR 6,813 billion
EBITDA increased 13.7% from IDR 2,604
billion to IDR 2,961 billion, EBITDA Margin
reached 43.5%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 456 billion to a
profit of IDR 217 billion
Free Cash Flow decreased from IDR 587
billion to IDR 463 billion
PT Indosat Tbk – 1Q 2016 Results
12
1Q16 QoQ Overview
Consolidated Revenue decreased 5.2%
from IDR 7,187 billion to IDR 6,813 billion
EBITDA increased 1.9% from IDR 2,906
billion to IDR 2,961 billion, EBITDA Margin
reached 43.5%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 188 billion to a
profit of IDR 217 billion
Free Cash Flow increased from IDR -1,509
billion to IDR 463 billion
PT Indosat Tbk – 1Q 2016 Results
13
Financial Highlights
1Q-15
1Q-16
YoY
4Q-15
1Q-16
QoQ
Operating Revenue
6,093
6,813
11.8%
7,187
6,813
-5.2%
EBITDA
2,604
2,961
13.7%
2,906
2,961
1.9%
42.7%
43.5%
0.8ppt
40.4%
43.5%
3.1ppt
217 147.7%
-188
in IDR billion
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
•
•
-456
217 215.8%
Revenue and EBITDA continued to grow, supported by strong growth in cellular
revenue and cost management initiative that starts to deliver the result.
Bottom line has entered into positive territory due to stabilized currency.
PT Indosat Tbk – 1Q 2016 Results
14
Segment Revenue Overview
in IDR billion
Operating Revenue Breakdown
+11.8% YoY
QoQ / YoY
6,527
6,962
7,187
271
272
286
921
997
900
936
4,903
5,321
5,768
5,904
5,676
1Q-15
2Q-15
4Q-15
1Q-16
6,093
290
Fixed Voice
•
•
•
-5.2% QoQ
Fixed Data
3Q-15
6,813
228
-20.1% / -21.4%
908
-8.9% / +1.0%
-3.9% / +15.8%
Cellular
Strong data cellular revenue growth has driven up overall cellular business performance
IDR appreciation drove IDD revenue down and eventually brought down Fixed voice revenue QoQ and YoY.
Project related to government was stop caused a lower Fixed data revenue QoQ. However, revenue growth
YoY is still maintained.
PT Indosat Tbk – 1Q 2016 Results
15
Cellular Revenue Performance
Voice
YoY
QoQ
8.2%
-6.2%
SMS
13.3%
-8.3%
Data
45.5%
7.4%
VAS
21.8%
5.8%
PT Indosat Tbk – 1Q 2016 Results
- Healthy growth in all services YoY
- Seasonality impacted voice and sms revenue,
but data, supported by 4G network and
offering, continued to grow
Increased VAS usage from various gaming &
content packages
16
Cellular Customer Base
Number of cellular customers
in million
in million
+4.9% YoY
66.5
Net cellular customers additions
68.5
69.0
+0.1% QoQ
69.7
69.8
3.3
2.0
0.5
1Q-15
•
2Q-15
3Q-15
4Q-15
1Q-16
1Q-15
2Q-15
3Q-15
0.8
4Q-15
0.1
1Q-16
Number of customer continued to grow, shifting from acquisition mode to
monetization mode.
PT Indosat Tbk – 1Q 2016 Results
17
Improving ARPU
ARPU and ARPM
in thousand IDR
(ARPU)
140
145
Voice Traffic and MOU
in IDR
(ARPM)
143
135
in billion minutes
(Voice Traffic)
137
67
+9.9% YoY
in minute/subscriber
(MOU)
67
70
76
-5.3% QoQ
+9.8% YoY
-7.3% QoQ
24.0
25.3
26.9
27.9
26.4
13.2
13.5
14.6
15.6
14.5
1Q-15
2Q-15
3Q-15
4Q-15
1Q-16
1Q-15
2Q-15
3Q-15
4Q-15
1Q-16
ARPU
•
•
69
ARPM
Voice Traffic
MOU
ARPU grew inline with customer addition YoY
Voice traffic was growing due to our expansion in outside of Java area
PT Indosat Tbk – 1Q 2016 Results
18
Strong Data Usage
Data Usage
SMS Delivered
in TByte
in billion
+60.5% YoY
55,871
-6.8% YoY
+11.7% QoQ
57,276
-11.6% QoQ
63,987
56
60
62
1Q-15
2Q-15
3Q-15
46,027
59
52
39,880
1Q-15
•
•
2Q-15
3Q-15
4Q-15
1Q-16
4Q-15
1Q-16
Increase in data traffic continued driven by 4G data plan focused
SMS declined due to seasonality
PT Indosat Tbk – 1Q 2016 Results
19
Operational expenses
as percentage of revenue
1Q-15
2Q-15
3Q-15
4Q-15
1Q-16
42.9%
42.1%
40.5%
42.1%
40.4%
Personnel
7.4%
6.9%
6.8%
7.6%
7.8%
Marketing
3.0%
4.6%
3.8%
6.8%
4.7%
General and Administration
3.8%
4.2%
2.9%
3.0%
3.7%
57.3%
57.7%
54.0%
59.6%
56.5%
33.9%
32.2%
29.8%
35.1%
32.6%
91.2%
89.9%
83.8%
94.7%
89.1%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Moderated operational expenses
G&A ratio was higher due to professional fees related to new marketing strategy and
campaign being implemented
PT Indosat Tbk – 1Q 2016 Results
20
EBITDA performance
EBITDA and EBITDA margin
in IDR billion
42.7%
46.0%
42.3%
40.4%
+13.7% YoY
2,604
2,758
1Q-15
2Q-15
EBITDA
3,205
3Q-15
43.5%
+1.9% QoQ
2,906
2,961
EBITDA performance is supported by
strong revenue growth combined with
strict cost management initiative that
started to deliver result
4Q-15
1Q-16
EBITDA Margin
PT Indosat Tbk – 1Q 2016 Results
21
Net profit
Net profit
in IDR billion
-157.2% YoY
+147.7% YoY
797
•
Strong revenue growth, good cost
management and stabilized currency
resulted in positive net profit
217
-456
1Q-14*
1Q-15
1Q-16
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 1Q 2016 Results
22
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
Net debt* and net debt/EBITDA
in IDR billion
2.73
2.58
2.19
2.25
1.97
-5.4% YoY
27,174
1Q-14
Gross Debt
27,398
1Q-15
2.39
-2.5% YoY
25,913
23,649
23,924
23,331
1Q-16
1Q-14
1Q-15
1Q-16
Gross Debt/EBITDA
Net Debt
Net Debt/EBITDA
* IDR 3.73tn, IDR 4.07tn and IDR 3.76tn of obligation under finance lease are included in 1Q14, 1Q15 and 1Q16 respectively
•
•
Gearing level continuously improved
Reducing US debt portion is progressing
PT Indosat Tbk – 1Q 2016 Results
23
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in %
in IDR billion
in IDR billion
37.6
26.8
23.2
1,096
1,051
481
•
1,414
1,372
1Q-15
2Q-15
1,869
24.4
1,663
463
-1,509
1Q-15
21.1
2,699
2Q-15
3Q-15
4Q-15
1Q-16
Capex
3Q-15
4Q-15
1Q-16
Capex/Revenue
Moderated capex to revenue ratio as a result of price negotiation supported by
Ooredoo, the parent
PT Indosat Tbk – 1Q 2016 Results
24
Network & Data User
Number of BTS
+3.2% QoQ
+28.2% YoY
•
•
50,687
3,361
52,326
3,544
22,671
23,730
25,068
22,902
23,525
23,596
23,714
2Q-15
3Q-15
4Q-15
1Q-16
40,831
75
43,075
106
46,361
165
18,544
20,067
22,212
1Q-15
4G
Data User
3G
In million
+6.0% YoY
30.1
29.5
1Q-15
2Q-15
32.2
3Q-15
-8.0% QoQ
34.0
4Q-15
31.2
1Q-16
2G
Strong network performance to support data service
Shifting the focus from acquisition toward monetization
PT Indosat Tbk – 1Q 2016 Results
25
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 2016 Results
27
2016 Guidance
FY 2015 Actual
FY 2016 Guidance
Consolidated Revenue Growth
11.1%
In line with market
EBITDA Margin*
42.9%
Low to Mid 40’s
IDR 7.3 trillion
IDR 6.5 – 7.5 trillion
CAPEX
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 1Q 2016 Results
28
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 2016 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.
31
Credit ratings
On 15 March 2016, Fitch Ratings has upgraded the Long-Term Local-Currency Issuer
Default Rating (LC IDR) of Indonesia’s second-largest telecommunications operator, PT
Indosat Tbk (Indosat Ooredoo), to ‘BBB+’ from ‘BBB’. The agency has simultaneously
affirmed Indosat Ooredoo’s Long-Term Foreign-Currency IDR (FC IDR) and its foreigncurrency senior unsecured rating at ‘BBB’. Fitch has also affirmed the National Long-Term
Rating at ‘AAA(idn)’. The Outlook on the ratings is Stable.
On 25 January 2016, Standard & Poor's Ratings Services (“S&P”) affirmed its 'BB+‘ longterm corporate credit rating on PT Indosat Tbk. The outlook is positive. S&P also affirmed
their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based
telecommunications company. S&P affirmed the rating because they expect Indosat to
maintain its solid No.2 position in Indonesia's growing cellular market. The positive outlook
reflects their view that the company's financial risk profile will improve over the next 12-18
months.
On 21 October 2015, Moody's Investors Service says that PT Indosat Tbk's (Ba1 stable)
1H 2015 results were in line with their expectations, with continued improvement in
operating performance from the second half of 2014. The stable outlook reflects Moody's
expectation that Indosat will maintain its position as a leading mobile operator in
Indonesia amid increasing competition for data services, and leverage, in terms of
adjusted debt/EBITDA will remain in the 2.5x -3.0x range for the next 12 - 15 months as
Indosat continues its high capex for network modernization.
On 28 September 2015, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk
(ISAT) and its Shelf-Registered Bond I/2014-2016, Bonds V/2007 Serie B, Bonds VII/2009
Serie B, and Bonds VIII/2012. PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s
Sukuk Ijarah I/2014-2016, Sukuk Ijarah IV/2009 Serie B, and Sukuk Ijarah V/2012. The
outlook for the corporate rating is “stable”. The ratings reflect ISAT’s strong support from its
majority shareholder, strong market position, and stable operating performance.
PT Indosat Tbk – 1Q 2016 Results
32
Debt maturity profile*
In IDR trillion
3.83
4.38
2.92
2.27
2.08
1.21
2016
2.46
2017
0.27
0.27
0.95
2018
2019
2020
IDR
0.36
2021
2022
0.36
0.81
2024
2025
* Excluding obligation under capital lease
USD in IDR
PT Indosat Tbk – 1Q 2016 Results
33
Spectrum overview
in Mhz
Number of BTS850 Mhz
Indosat
900 Mhz
1800 Mhz
2100 Mhz
2300 Mhz
2.5
10.0
20.0
10.0
15.0**
3.5 – 5.0*
7.5
22.5
15.0
15.0**
XL Axiata
-
7.5
22.5
15.0
-
Hutchison
-
-
10.0
10.0
-
Telkomsel
* Telkom and Bakrie Telekom have the same spectrum, differentiated by its operational areas
** Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku
PT Indosat Tbk – 1Q 2016 Results
34
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 2016 Results
35