TLKM FY14 EARNINGS CALL 160315 final

PT Telekomunikasi Indonesia Tbk

PT

 

Telekomunikasi

 

Indonesia

 

Tbk

Full Year 2014 Results

Full

 

Year

 

2014

 

Results

Disclaimer

Disclaimer

hi d i f d l ki i hi h i f f

This document may contain forward‐looking statement within the meaning of safe‐ harbor. Actual results could differ materially from projections, estimations or expectations. These may involve risk and uncertainty, and may cause actual results

d d l t t diff b t ti ll f th d i li d i th

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

Content

1. Telkom

 

in

 

Brief

2. FY14 Financial and Operational Results

2. FY14

 

Financial

 

and

 

Operational

 

Results

3. Company

 

Guidance

 

2015

T

e

lkom in Brie

f

Telkom

 

Group

 

Portfolios

Well diversified business portfolio:  9 Product Portfolios and 6 Customer Portfolios

10

1

ME

Digital Life Digital Home Digital Advertising

2

9 8

7 11

•Managed Apps & SI

•BPM

•Premise Integration

•E-Payment

•DataCenter & Cloud

•M2M

I

•E-Health •E-Tourism •E-Transportation •E-Gov

Big Data 12

Product Portfolio Customer Portfolio S e rv ic e s Platform Platform Services Services •M2M Ecosystem Ecosystem Solution Solution Big Big Data

Data _{5 6}

4

13

•Fixed Phone

•Fixed Broadband

•Wi-Fi

•Full Mobility

•Limited Mobility

•Interconnection & International Traffic

•Network Service

•Satellite •Tower

T

15 14_Government •Tower Fixed Fixed Services Services Mobile Mobile Services Services

NW & Infra NW & Infra Services Services ₃ 2 1 15 16

Telkom

 

and

 

Subsidiaries

Government 52.6%

Public 47.4%

Mobile Business

Multimedia Business

International Business

Infrastructure Business

T

IME

_T

_T

Singapore Hongkong Timorleste _Australia Singapore Hongkong Timorleste _Australia

Macau Arab Saudi USA Malaysia

N Z l d M New Zeland Myanmar

Metra

Digital Note :

T T l i ti

Digital Investama

Affiliation

T: Telecommunication

Current Ownership

Current

 

Ownership

Telkom Indonesia is listed at Indonesia Stock Exchange (Bloomberg: TLKM IJ) and New York Stock Exchange (Bloomberg: TLK US)

Government    52.6%  Public     47.4%  Treasuryy Shares   2.6% 

Total

 

Shares

Market

 

Capitalization

 

at

 

IDX

100,799,996,400

 

shares

*) as of March 13, 2015

FY14 Financial

FY14 Financial

and Operational Results

and Operational Results

Highlights Performance FY14

Highlights

 

Performance

 

FY14

Continued strong revenue growth with healthy margins 

Consolidated Revenue grew  by 8.1% YoY to Rp89.7tn with 51.1% EBITDA margin

Telkomsel Revenue grew by 10.4% YoY to Rp66.3tn with 56.2% EBITDA margin

Continued strong revenue growth with healthy margins 

Consolidated Revenue grew  by 8.1% YoY to Rp89.7tn with 51.1% EBITDA margin

Telkomsel Revenue grew by 10.4% YoY to Rp66.3tn with 56.2% EBITDA margin

Gaining remarkable subscribers growth

db d

Gaining remarkable subscribers growth

db d

Broadband users grew 12.1% YoY to 71.3mn

Cellular subscribers grew 6.9% YoY to 140.6mn

Mobile data user grew  12.1% YoY to 67.9mn

Broadband users grew 12.1% YoY to 71.3mn

Cellular subscribers grew 6.9% YoY to 140.6mn

Mobile data user grew  12.1% YoY to 67.9mn

Continued leadership in infrastructure

Fiber based backbone network 76,700 km, Homes passed 13.2 million (61% YoY)

Total BTS Telkomsel 85 420 units (22 3% YoY) New BTS 15 556 units

Continued leadership in infrastructure

Fiber based backbone network 76,700 km, Homes passed 13.2 million (61% YoY)

Total BTS Telkomsel 85 420 units (22 3% YoY) New BTS 15 556 units

Total BTS Telkomsel85,420 units (22.3% YoY), New BTS 15,556 units.

Total 3G BTS 38,836 units (43.7% YoY), New 3G BTS 11,802 units (76% of new BTS)

Total BTS Telkomsel85,420 units (22.3% YoY), New BTS 15,556 units.

Total 3G BTS 38,836 units (43.7% YoY), New 3G BTS 11,802 units (76% of new BTS)

Healthy

 

Revenue

 

Growth

 

on

 

Back

 

of

 

Data Business

Data

 

Business

Revenue

 

YoY (Rp Trillion)

▲32.9%

▲

8.1

%

▲6.7% 4.6

4.9

▲34.2%

▲7.8%

Fixed Broadband Revenue

83 0

89.7 ▲24.0%

10.5

14.1 Mobile Data Revenue 32.1 34.3 83.0  ▼8.5% ▲3.3% 19.5 13 1 24.1 13 6 FY13 FY14 ▼2.8%

▲16.3% ▲2.2% 13.1

9.7

4.8

2.4 1.3 

13.6 8.9 4.7 2.8 1.3 TOTAL Note: 

1.“Other” among others consists of CPE, Infrastructure Lease, Directory Assistance and USO. 2 SMS excluding SMS for mobile advertising (it is included to Data Internet & IT)

FY13 FY14 _{Cellular voiceData, Internet, & IT SMS Fixed line voice Interconnection Other Network}

Manageable

 

Operating

 

Expenses

Operating

 

Expenses

 

YoY (Rp Trillion)

▲

6.5%

▲15.3%

19.3 

22,3 

FY13 FY14

▼1.2%

41.2 

43.9 

FY14

▼0.7%

▲1.6%

▼4.6%

9.7 

4 9 9,6 

4 8

TOTAL

FY13 FY14

4.9 

4.2 

3.0 4.8

4.0 

3,1 

O&M Personnel Interconnection G&A Marketing

Healthy

 

EBITDA

 

&

 

Net

 

Income

 

Growth

EBITDA (Rp Tn)

Net Income (Rp Tn)

▲

9.7%

▲

3.0%

EBITDA (Rp

 

Tn)

Net

 

Income

 

(Rp Tn)

14 6 45.8

14.2 14.6 

41.8

One-off income from

Telkom Vision divestment in 2013.

Normalized net income growth is 13.4%.

FY13 FY14

Population Coverage: ± 95%

Telkomsel: Widest

 

coverage

Population Coverage:  ± 95%   with 3G Coverage:  ± 60% 

Papua, Maluku,  Papua, Maluku,  Sulawesi, Kalimantan Sulawesi, Kalimantan CB ti 22%

Sumatera Sumatera

CB portion 28%

CB portion: 22%

CB portion: 28%

Greater Jakarta &  Greater Jakarta & 

W J

W J

Indonesia Telco Industry Overview

West Java 

West Java 

CB portion: 24%

Java & Bali  Java & Bali  CB portion: 26%

Indonesia Telco Industry Overview

 8 players (4 GSM + 4 CDMA) in mature industry with estimated 130% SIM penetration (± 75% population‐based). Relatively stable competition in legacy businesses.

( p p ) y p g y

 Early stage in data business with around 50% data users and 30% smartphone penetration.

 Tremendous growth in digital business; data traffic grew by more than 100% YoY and data revenue grew more than 30% in FY‐14.

Telkomsel:

 

Solid

 

Revenue

 

Growth

 

with

 

Healthy

 

Profitability

66 3

+10% REVENUE

YEAR‐ON‐YEAR ACHIEVEMENT

In Trillion

CAPEX PAID

EBITDA NET INCOME

In Trillion

In Trillion In Trillion

66.3 15.6 60.0 11.7 14.5 12.4 17% 17% Digital Business 34% 34% 33.9 37.3 19.4 17.3 12% 12% 10% 10% 50.6 FY 13 48.4 FY 14

FY‐14 FY‐13

5% 5% Legacy Margin 56% 56% Margin 29% 29%

FY‐13 FY‐14 FY‐13 FY‐14

FY‐13 FY‐14

0%

In Million In Thousand

TOTAL ASSET BTS ROLL OUT BTS ON AIR

In Thousand CUSTOMER In Trillion % % 11 8 0.2 15.6 11 6 0.0 0% 15.6 +22% 85.4 38.8 0.2 69.9 27.0 3G 2%

2% _44%44%

78.2 73.3 _140.6 131.5 4G 3G 4G 11.8 4.0 11.6 3.6 FY 14 46.4 FY 13 42.8 3G 2G

--10%10% 8%8%

FY‐14 FY‐13

7% 7%

FY‐13 FY‐14

7%

7% _2G

FY‐13 FY‐14 FY‐13 FY‐14

FY 14

Telkomsel:

 

Market

 

leader

 

with

 

increased

 

market

 

share

Cellular Customer Base Share (BIG‐3 vs others)

Cellular Customer Base Share

(TSEL vs BIG‐3)

BIG‐3 Revenue Share

(TSEL vs BIG‐3)

( ) ( ) ( )

85% _55% 61%

YEAR ON YEAR ACHIEVEMENT

Telkomsel:

 

Continue

 

to

 

Focus

 

on

 

Digital

 

Business

34%

DIGITAL BUSINESS REVENUE

In Million

YEAR‐ON‐YEAR ACHIEVEMENT

In Trillion

DATA USER DATA TRAFFIC

I PB Broadband: +34% 15.6 14 1 11.7 34% 34% 234.9 In PB Telkomsel Flash BlackBerry 67.9 60.5 1.5 14.1 1.2 10.5 32% 32% Digital Services Broadband 34% 34%

FY 13 FY 14

96.7

143%

143% _{Digital Services:} - Digital Lifestyle - Digital Advertising

- Digital Payment & Mobile Banking

FY 13 FY 14

12% 12%

FY‐14

FY‐13 FY‐13 FY‐14

3G CAPABLE DEVICE

3G & 4G BTS ROLL OUT

In Thousand

3G & 4G BTS ON AIR

FY‐13 FY‐14

23 7

40.4

In Million In Thousand In Thousand

0.0 12.0 0.2 11.6 4G 0.2 39.0 27.0 23.7

FY‐13 FY‐14

71% 71%

FY‐14 FY‐13

11.6 11.8

3G 2%2%

4G

3G

38.8 27.0

0.0

FY‐14 FY‐13

44% 44%

IDN:

 

Drive

 

Digital

 

Business

Remarkable Progress

High Speed Broadband Access through Optical Fiber Network & Wifi

• High Speed Optical Access Network

• 13.2 million Homes passed

IP-based and Optical Backbone Network

• 170 Thousands Wi‐Fi

Id

‐

Ring

•_{• 76,700 km}IP and Optical _nationwide Backbone _backbone Network _network

Integrated Next Generation Network for Multi Services & Multi Screen

d

International

 

Expansion:

 

h

h

TIMES International Portfolio

Strengthen

 

Footprint

 

in

 

the

 

Region

Business Process  Outsourcing &

IT Solution MNO

MVNO Satellite & 

Network

Data 

Center

Malaysia Timor Leste Malaysia Japan Singapore _Australia

Brunei

H k

Singapore Korea Timor Leste _{New Zealand}

International 

International 

Expansion Expansion

Hongkong

Macau

Hongkong USA

UEA Netherland

Arab Saudi _{Myanmar Germany}

Company Guidance 2015

1

2015

 

Management

 

Guidance

Mobile Business

3 Main Program : To Be King of Digital

Indonesia Digital Network International Expansion

1. Exploit 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 

In line ith or slightl abo e the market for TLKM and TSEL

19  Maintain double digit growth

 Grow digital business

 Turn-around fixed line

 Drive digital business

 Stretch & Expand int’l business  Strengthen footprint in regional

In line with or slightly above the market for TLKM and TSEL:

‐Increase digital business’s portion close to 40% for Telkom Group

‐Strengthen mobile & fixed broadband through triple play and FTTH

Revenue

 

Growth

Slightly decline for TLKM and Telkomsel in line with aggressive investment in digital business.

EBITDA

 

Margin

Groupp :  22% ‐25% of Revenue.

 Mobile related: 60% ‐65%

 Fixed broadband related: 20% ‐25%

 Other business: 10% 

Capex

Thank

Y

ou

Thank

Yo

u

2

IDN:

 

Drive

 

Digital

 

Business

Remarkable Progress

High Speed Broadband Access through Optical Fiber Network & Wifi

• High Speed Optical Access Network • 13.2 million Homes passed

IP-based and Optical Backbone Network

• 170 Thousands Wi‐Fi

Id

‐

Ring

•_{• 76,700 km}IP and Optical _nationwide Backbone _backbone Network _network

Integrated Next Generation Network for Multi Services & Multi Screen

d

International

 

Expansion:

 

h

h

TIMES International Portfolio

Strengthen

 

Footprint

 

in

 

the

 

Region

Business Process  Outsourcing &

IT Solution

MNO

MVNO Satellite &  Network

Data  Center

Malaysia Timor Leste Malaysia Japan Singapore _Australia

Brunei

H k

Singapore Korea Timor Leste _{New Zealand}

International  International  Expansion Expansion Hongkong Macau Hongkong USA UEA Netherland

Arab Saudi _{Myanmar Germany}

18

Company Guidance 2015

1

2015

 

Management

 

Guidance

Mobile Business

3 Main Program : To Be King of Digital

Indonesia Digital Network International Expansion

1. Exploit 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 

In line ith or slightl abo e the market for TLKM and TSEL

19

 Maintain double digit growth

 Grow digital business

 Turn-around fixed line

 Drive digital business

 Stretch & Expand int’l business

 Strengthen footprint in regional

In line with or slightly above the market for TLKM and TSEL:

‐Increase digital business’s portion close to 40% for Telkom Group

‐Strengthen mobile & fixed broadband through triple play and FTTH

Revenue

 

Growth

Slightly decline for TLKM and Telkomsel in line with aggressive investment in digital business.

EBITDA

 

Margin

Groupp :  22% ‐25% of Revenue.

 Mobile related: 60% ‐65%

 Fixed broadband related: 20% ‐25%

 Other business: 10% 

Capex

20

Thank

Y

ou

Thank

Yo

u

2