Indosat FY16 Final
PT. Indosat Tbk.
Full Year 2016 Results
2016 was the year of data price war
Summary
Competition in data services pricing was very though in 2016. All operators competed to offer very
cheap data services price and bundled with various trade marketing program that is very attractive
to win retailers/outlets engagement.
Hutch 3 consistently offered outlets championship/league program on a seasonal basis that was
targeting big outlet segment (wholesales) for a high revenue target with a great prize. Hutch 3
consistently offered Low price in Low quota in the beginning of 2016, then reduce the price further
in mid-2016 due to XL movement in competition.
XL surprisingly changed its move from campaigning value to offering very cheap data prices in mid2016. For 1 GB product XL has significantly lowered the trade price 50% in Q3 2016 compared to
the offering in beginning 2016. This was also followed by a decreasing price in 2 GB price.
XL with AXIS Brand has also conducted very significant price reduction data that offered a simple
and low quota. Axis also did a big move with lowering its 1 GB BRONET price ~50%, followed by
its 2 GB reduction. XL and Axis aggressiveness in very cheap data offers was triggering some
responds from competitors including Indosat.
Responding to tough competition, Indosat has determined its positioning in data pricing not as the
lowest price but not too far from competition.
PT Indosat Tbk – FY 2016 Results
2
Facing 2017
It seems that facing 2017 all operators began to try to increase the price
of data services.
Hutch 3 has started to increase in offering its 1 GB in Feb 2017. The
same increase also happened for 2 GB package.
XL also increased its 1 GB price, followed by increasing its 2 GB price.
Indosat also has planned to increase data price as a strategic move in
improving profitability as well as strengthening Indosat positioning in the
competition.
PT Indosat Tbk – FY 2016 Results
3
Financial and
Operational Highlights
FY16 YoY Overview
Consolidated Revenue increased 9.0%
from IDR 26,769 billion to IDR 29,185 billion
EBITDA increased 12.1% from IDR 11,473
billion to IDR 12,864 billion, EBITDA Margin
reached 44.1%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 1,310 billion to
a profit of IDR 1,105 billion
Free Cash Flow increased from IDR 1,561
billion to IDR 2,460 billion
PT Indosat Tbk – FY 2016 Results
5
4Q16 QoQ Overview
Consolidated Revenue increased 1.0%
from IDR 7,583 billion to IDR 7,660 billion
EBITDA decreased 0.8% from IDR 3,425
billion to IDR 3,398 billion, EBITDA Margin
reached 44.4%
Profit Attributable to Owners of The Parent
decreased 37.8% from IDR 417 billion to
IDR 260 billion
Free Cash Flow decreased from IDR 1,307
billion to a negative IDR186 billion
PT Indosat Tbk – FY 2016 Results
6
Financial Highlights
in IDR billion
•
QoQ
FY-15
FY-16
YoY
3Q-16
4Q-16
Operating Revenue
26,769
29,185
9.0%
7,583
7,660
1.0%
EBITDA
11,473
12,864
12.1%
3,425
3,398
-0.8%
EBITDA Margin
42.9%
44.1%
1.2ppt
45.2%
44.4%
-0.8ppt
Profit (Loss)Attributable
to Owners of the Parent
-1,310
1,105 184.4%
417
260
-37.8%
Revenue growth and EBITDA margin meet guidance while profitability strongly
improved
PT Indosat Tbk – FY 2016 Results
7
Segment Revenue Overview
Operating Revenue Breakdown
in IDR billion
+1.0% QoQ
+6.6% YoY
7,187
286
228
7,129
7,583
226
238
989
997
909
5,904
5,676
5,914
4Q-15
1Q-16
2Q-16
Fixed Voice
•
•
6,813
Fixed Data
QoQ / YoY
7,660
266
+11.8% / -6.9%
1,044
1,190
+14.0% / +19.3%
6,301
6,204
3Q-16
-1.5% / +5.1%
4Q-16
Cellular
Quarterly cellular revenue in 4Q-16 declined after peak season in 3Q-16
Initiative in fixed data segment to provide IT service that was launched back in 1Q-16
continued to deliver a result to support revenue growth.
PT Indosat Tbk – FY 2016 Results
8
Cellular Revenue Performance
Voice
FY-16
YoY
4Q-16
QoQ
1.1%
-1.4%
SMS
-0.4%
-3.3%
Data
46.7%
3.0%
VAS
39.1%
0.0%
PT Indosat Tbk – FY 2016 Results
- Marketing initiative focus on voice service
was able to generate growth in voice
revenue YoY while data messaging service
replaced traditional SMS.
Digital business initiatives pushed VAS
revenue growth
9
Cellular Customer Base
Number of cellular customers
in million
in million
+22.8% YoY
+4.9% QoQ
81.6
80.5
69.7
Net cellular customers additions
85.7
10.7
69.8
4.0
0.8
4Q-15
•
1Q-16
2Q-16
3Q-16
4Q-16
4Q-15
1.1
0.1
1Q-16
2Q-16
3Q-16
4Q-16
Number of customer continued to growth, acquiring data and traditional voice users
PT Indosat Tbk – FY 2016 Results
10
ARPU maintained
ARPU and ARPM
in thousand IDR
(ARPU)
Voice Traffic and MOU
in IDR
(ARPM)
in billion minutes
(Voice Traffic)
in minute/subscriber
(MOU)
137
135
126
124
-12.2% YoY
123
76
69
71
27.9
26.4
25.5
24.2
24.5
15.6
14.5
15.6
4Q-15
1Q-16
2Q-16
3Q-16
4Q-16
4Q-15
1Q-16
2Q-16
ARPU
•
68
+1.3% QoQ
+6.1% YoY
•
66
ARPM
Voice Traffic
-0.3% QoQ
16.6
3Q-16
16.6
4Q-16
MOU
A combination of high ARPU in Java and lower ARPU in ex-Java resulting a well
managed ARPU level QoQ.
Voice traffic maintained high coming from ex-Java area
PT Indosat Tbk – FY 2016 Results
11
Strong Data Usage
Data Usage
SMS Delivered
in TByte
in billion
+228.4% YoY
+28.8% QoQ
-26.7% YoY
-11.1% QoQ
188,101
59
146,060
52
55
49
44
93,641
57,276
4Q-15
•
•
63,987
1Q-16
2Q-16
3Q-16
4Q-16
4Q-15
1Q-16
2Q-16
3Q-16
4Q-16
Increase in data traffic driven by increase in number of data user and consumption
per user
SMS traffic continued to decline as trend shifting toward messaging application.
PT Indosat Tbk – FY 2016 Results
12
Operational expenses
as percentage of revenue
4Q-15
1Q-16
2Q-16
3Q-16
4Q-16
42.1%
40.4%
41.4%
40.6%
40.9%
Personnel
7.6%
7.8%
7.3%
6.8%
7.2%
Marketing
6.8%
4.7%
4.9%
4.0%
3.5%
General and Administration
3.0%
3.7%
3.2%
3.5%
4.0%
59.6%
56.5%
56.8%
54.9%
55.6%
35.1%
32.6%
31.3%
29.9%
29.4%
94.7%
89.1%
88.1%
84.8%
85.1%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Moderated operational expenses
Continued improvement in operational process
PT Indosat Tbk – FY 2016 Results
13
EBITDA performance
EBITDA and EBITDA margin
in IDR billion
40.4%
43.5%
43.2%
45.2%
-0.8% QoQ
+17.0% YoY
2,906
2,961
3,080
4Q-15
1Q-16
EBITDA
2Q-16
44.4%
3,425
EBITDA margin in line with guidance
3,398
3Q-16
4Q-16
EBITDA Margin
PT Indosat Tbk – FY 2016 Results
14
Net profit
Net profit
in IDR billion
+34.8% YoY
+184.4% YoY
1,105
Improvement in operational level combine
with stable currency movement and low
USD debt resulted positive net profit
-1,310
-2,008
FY-14*
FY-15
FY-16
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – FY 2016 Results
15
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
Net debt* and net debt/EBITDA
in IDR billion
2.73
2.38
2.42
2.10
1.84
1.70
-14.4% YoY
27,346
27,721
FY-14
FY-15
Gross Debt
-9.2% YoY
23,725
23,866
24,098
21,874
FY-16
FY-14
FY-15
FY-16
Gross Debt/EBITDA
Net Debt
Net Debt/EBITDA
* IDR 4.05tn, IDR 3.97tn and IDR 3.51tn of obligation under finance lease are included in FY14, FY15 and FY16 respectively
•
Currency mixed has improved and shall continue toward lower USD debt portion
followed by further downward debt level
PT Indosat Tbk – FY 2016 Results
16
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in IDR billion
in IDR billion
in %
37.6
29.7
25.2
24.4
2,699
21.1
2,117
1,663
1,307
1,910
1,603
877
463
-186
4Q-15
1Q-16
2Q-16
3Q-16
4Q-16
-1,392
4Q-15*
1Q-16
2Q-16
3Q-16
4Q-16
Capex
Capex/Revenue
* Reclassification from repayment of obligation under finance lease
•
Capex disbursement for FY-2016 was in line with guidance
PT Indosat Tbk – FY 2016 Results
17
Network & Data User
Number of BTS
+4.2% QoQ
+11.4% YoY
50,687
52,326
53,333
54,212
56,483
3,361
3,544
3,724
4,080
4,717
25,068
25,816
26,273
27,724
23,596
23,714
23,793
23,859
24,042
4G
1Q-16
3G
2Q-16
3Q-16
In million
34.0
23,730
4Q-15
•
•
Data User
4Q-16
4Q-15
+19.1% YoY
35.1
+2.8% QoQ
39.4
40.5
3Q-16
4Q-16
31.2
1Q-16
2Q-16
2G
4G coverage has reached 112 cities and counting
Data users are steadily growing with 1.7Gb/month usage on average.
PT Indosat Tbk – FY 2016 Results
18
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 – FY 2016 Results
20
2017 Guidance
FY-16
Actual
Consolidated Revenue Growth
EBITDA Margin
CAPEX
PT Indosat Tbk – FY 2016 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)
21
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 – FY 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.
24
Credit ratings
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.
On 13 December 2016, Moody's Investors Service has affirmed Indosat Tbk. (P.T.)'s Ba1
corporate family rating, combines The company's standalone credit strength, which
reflects its established market position, their expectation of moderate growth in the
cellular market, and an improving macro environment. However, competition, especially in
mobile data space, will continue to pressure EBITDA margins although we expect them to
remain high for the rating level around 50%.
On 1 December 2016, PEFINDO has affirmed its “idAAA” rating for PT Indosat Tbk
(ISAT)’s Bonds VII Year 2009 Serie B of IDR600 billion and its “idAAA(sy)” rating for ISAT’s
Sukuk Ijarah IV Year 2009 Serie B of IDR172 billion that will mature on December 8, 2016.
ISAT should be able to repay the maturing Bond and Sukuk Ijarah using its internal fund.
As of September 30, 2016, it had cash and cash equivalents amounting to IDR2.4 trillion.
On 9 August 2016, Fitch Ratings Indonesia has assigned National Long-Term Ratings of
'AAA(idn)' to PT Indosat Tbk's (Indosat Ooredoo: Long-Term IDR BBB/National Rating
AAA(idn)/Stable) IDR3,172bn senior unsecured bonds and IDR288bn sukuk ijarah issues.
The issues are launched from Indosat Ooredoo's IDR9trn bond programme and IDR1trn
sukuk ijarah programme - affirmed at 'AAA(idn)' on 15 March 2016 - and are consequently
rated at the same level as the programmes.
PT Indosat Tbk – FY 2016 Results
25
Debt maturity profile*
In IDR trillion
5.94
3.62
2.56
2.08
0.95
1.88
2017
0.27
0.27
2018
2019
2020
1.10
2021
0.81
2022
0.12
0.36
2023
2024
0.26
2025
2026
IDR
USD in IDR
* Excluding obligation under capital lease
PT Indosat Tbk – FY 2016 Results
26
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 – FY 2016 Results
27
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 – FY 2016 Results
28
Full Year 2016 Results
2016 was the year of data price war
Summary
Competition in data services pricing was very though in 2016. All operators competed to offer very
cheap data services price and bundled with various trade marketing program that is very attractive
to win retailers/outlets engagement.
Hutch 3 consistently offered outlets championship/league program on a seasonal basis that was
targeting big outlet segment (wholesales) for a high revenue target with a great prize. Hutch 3
consistently offered Low price in Low quota in the beginning of 2016, then reduce the price further
in mid-2016 due to XL movement in competition.
XL surprisingly changed its move from campaigning value to offering very cheap data prices in mid2016. For 1 GB product XL has significantly lowered the trade price 50% in Q3 2016 compared to
the offering in beginning 2016. This was also followed by a decreasing price in 2 GB price.
XL with AXIS Brand has also conducted very significant price reduction data that offered a simple
and low quota. Axis also did a big move with lowering its 1 GB BRONET price ~50%, followed by
its 2 GB reduction. XL and Axis aggressiveness in very cheap data offers was triggering some
responds from competitors including Indosat.
Responding to tough competition, Indosat has determined its positioning in data pricing not as the
lowest price but not too far from competition.
PT Indosat Tbk – FY 2016 Results
2
Facing 2017
It seems that facing 2017 all operators began to try to increase the price
of data services.
Hutch 3 has started to increase in offering its 1 GB in Feb 2017. The
same increase also happened for 2 GB package.
XL also increased its 1 GB price, followed by increasing its 2 GB price.
Indosat also has planned to increase data price as a strategic move in
improving profitability as well as strengthening Indosat positioning in the
competition.
PT Indosat Tbk – FY 2016 Results
3
Financial and
Operational Highlights
FY16 YoY Overview
Consolidated Revenue increased 9.0%
from IDR 26,769 billion to IDR 29,185 billion
EBITDA increased 12.1% from IDR 11,473
billion to IDR 12,864 billion, EBITDA Margin
reached 44.1%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 1,310 billion to
a profit of IDR 1,105 billion
Free Cash Flow increased from IDR 1,561
billion to IDR 2,460 billion
PT Indosat Tbk – FY 2016 Results
5
4Q16 QoQ Overview
Consolidated Revenue increased 1.0%
from IDR 7,583 billion to IDR 7,660 billion
EBITDA decreased 0.8% from IDR 3,425
billion to IDR 3,398 billion, EBITDA Margin
reached 44.4%
Profit Attributable to Owners of The Parent
decreased 37.8% from IDR 417 billion to
IDR 260 billion
Free Cash Flow decreased from IDR 1,307
billion to a negative IDR186 billion
PT Indosat Tbk – FY 2016 Results
6
Financial Highlights
in IDR billion
•
QoQ
FY-15
FY-16
YoY
3Q-16
4Q-16
Operating Revenue
26,769
29,185
9.0%
7,583
7,660
1.0%
EBITDA
11,473
12,864
12.1%
3,425
3,398
-0.8%
EBITDA Margin
42.9%
44.1%
1.2ppt
45.2%
44.4%
-0.8ppt
Profit (Loss)Attributable
to Owners of the Parent
-1,310
1,105 184.4%
417
260
-37.8%
Revenue growth and EBITDA margin meet guidance while profitability strongly
improved
PT Indosat Tbk – FY 2016 Results
7
Segment Revenue Overview
Operating Revenue Breakdown
in IDR billion
+1.0% QoQ
+6.6% YoY
7,187
286
228
7,129
7,583
226
238
989
997
909
5,904
5,676
5,914
4Q-15
1Q-16
2Q-16
Fixed Voice
•
•
6,813
Fixed Data
QoQ / YoY
7,660
266
+11.8% / -6.9%
1,044
1,190
+14.0% / +19.3%
6,301
6,204
3Q-16
-1.5% / +5.1%
4Q-16
Cellular
Quarterly cellular revenue in 4Q-16 declined after peak season in 3Q-16
Initiative in fixed data segment to provide IT service that was launched back in 1Q-16
continued to deliver a result to support revenue growth.
PT Indosat Tbk – FY 2016 Results
8
Cellular Revenue Performance
Voice
FY-16
YoY
4Q-16
QoQ
1.1%
-1.4%
SMS
-0.4%
-3.3%
Data
46.7%
3.0%
VAS
39.1%
0.0%
PT Indosat Tbk – FY 2016 Results
- Marketing initiative focus on voice service
was able to generate growth in voice
revenue YoY while data messaging service
replaced traditional SMS.
Digital business initiatives pushed VAS
revenue growth
9
Cellular Customer Base
Number of cellular customers
in million
in million
+22.8% YoY
+4.9% QoQ
81.6
80.5
69.7
Net cellular customers additions
85.7
10.7
69.8
4.0
0.8
4Q-15
•
1Q-16
2Q-16
3Q-16
4Q-16
4Q-15
1.1
0.1
1Q-16
2Q-16
3Q-16
4Q-16
Number of customer continued to growth, acquiring data and traditional voice users
PT Indosat Tbk – FY 2016 Results
10
ARPU maintained
ARPU and ARPM
in thousand IDR
(ARPU)
Voice Traffic and MOU
in IDR
(ARPM)
in billion minutes
(Voice Traffic)
in minute/subscriber
(MOU)
137
135
126
124
-12.2% YoY
123
76
69
71
27.9
26.4
25.5
24.2
24.5
15.6
14.5
15.6
4Q-15
1Q-16
2Q-16
3Q-16
4Q-16
4Q-15
1Q-16
2Q-16
ARPU
•
68
+1.3% QoQ
+6.1% YoY
•
66
ARPM
Voice Traffic
-0.3% QoQ
16.6
3Q-16
16.6
4Q-16
MOU
A combination of high ARPU in Java and lower ARPU in ex-Java resulting a well
managed ARPU level QoQ.
Voice traffic maintained high coming from ex-Java area
PT Indosat Tbk – FY 2016 Results
11
Strong Data Usage
Data Usage
SMS Delivered
in TByte
in billion
+228.4% YoY
+28.8% QoQ
-26.7% YoY
-11.1% QoQ
188,101
59
146,060
52
55
49
44
93,641
57,276
4Q-15
•
•
63,987
1Q-16
2Q-16
3Q-16
4Q-16
4Q-15
1Q-16
2Q-16
3Q-16
4Q-16
Increase in data traffic driven by increase in number of data user and consumption
per user
SMS traffic continued to decline as trend shifting toward messaging application.
PT Indosat Tbk – FY 2016 Results
12
Operational expenses
as percentage of revenue
4Q-15
1Q-16
2Q-16
3Q-16
4Q-16
42.1%
40.4%
41.4%
40.6%
40.9%
Personnel
7.6%
7.8%
7.3%
6.8%
7.2%
Marketing
6.8%
4.7%
4.9%
4.0%
3.5%
General and Administration
3.0%
3.7%
3.2%
3.5%
4.0%
59.6%
56.5%
56.8%
54.9%
55.6%
35.1%
32.6%
31.3%
29.9%
29.4%
94.7%
89.1%
88.1%
84.8%
85.1%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Moderated operational expenses
Continued improvement in operational process
PT Indosat Tbk – FY 2016 Results
13
EBITDA performance
EBITDA and EBITDA margin
in IDR billion
40.4%
43.5%
43.2%
45.2%
-0.8% QoQ
+17.0% YoY
2,906
2,961
3,080
4Q-15
1Q-16
EBITDA
2Q-16
44.4%
3,425
EBITDA margin in line with guidance
3,398
3Q-16
4Q-16
EBITDA Margin
PT Indosat Tbk – FY 2016 Results
14
Net profit
Net profit
in IDR billion
+34.8% YoY
+184.4% YoY
1,105
Improvement in operational level combine
with stable currency movement and low
USD debt resulted positive net profit
-1,310
-2,008
FY-14*
FY-15
FY-16
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – FY 2016 Results
15
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
Net debt* and net debt/EBITDA
in IDR billion
2.73
2.38
2.42
2.10
1.84
1.70
-14.4% YoY
27,346
27,721
FY-14
FY-15
Gross Debt
-9.2% YoY
23,725
23,866
24,098
21,874
FY-16
FY-14
FY-15
FY-16
Gross Debt/EBITDA
Net Debt
Net Debt/EBITDA
* IDR 4.05tn, IDR 3.97tn and IDR 3.51tn of obligation under finance lease are included in FY14, FY15 and FY16 respectively
•
Currency mixed has improved and shall continue toward lower USD debt portion
followed by further downward debt level
PT Indosat Tbk – FY 2016 Results
16
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in IDR billion
in IDR billion
in %
37.6
29.7
25.2
24.4
2,699
21.1
2,117
1,663
1,307
1,910
1,603
877
463
-186
4Q-15
1Q-16
2Q-16
3Q-16
4Q-16
-1,392
4Q-15*
1Q-16
2Q-16
3Q-16
4Q-16
Capex
Capex/Revenue
* Reclassification from repayment of obligation under finance lease
•
Capex disbursement for FY-2016 was in line with guidance
PT Indosat Tbk – FY 2016 Results
17
Network & Data User
Number of BTS
+4.2% QoQ
+11.4% YoY
50,687
52,326
53,333
54,212
56,483
3,361
3,544
3,724
4,080
4,717
25,068
25,816
26,273
27,724
23,596
23,714
23,793
23,859
24,042
4G
1Q-16
3G
2Q-16
3Q-16
In million
34.0
23,730
4Q-15
•
•
Data User
4Q-16
4Q-15
+19.1% YoY
35.1
+2.8% QoQ
39.4
40.5
3Q-16
4Q-16
31.2
1Q-16
2Q-16
2G
4G coverage has reached 112 cities and counting
Data users are steadily growing with 1.7Gb/month usage on average.
PT Indosat Tbk – FY 2016 Results
18
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 – FY 2016 Results
20
2017 Guidance
FY-16
Actual
Consolidated Revenue Growth
EBITDA Margin
CAPEX
PT Indosat Tbk – FY 2016 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)
21
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 – FY 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.
24
Credit ratings
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.
On 13 December 2016, Moody's Investors Service has affirmed Indosat Tbk. (P.T.)'s Ba1
corporate family rating, combines The company's standalone credit strength, which
reflects its established market position, their expectation of moderate growth in the
cellular market, and an improving macro environment. However, competition, especially in
mobile data space, will continue to pressure EBITDA margins although we expect them to
remain high for the rating level around 50%.
On 1 December 2016, PEFINDO has affirmed its “idAAA” rating for PT Indosat Tbk
(ISAT)’s Bonds VII Year 2009 Serie B of IDR600 billion and its “idAAA(sy)” rating for ISAT’s
Sukuk Ijarah IV Year 2009 Serie B of IDR172 billion that will mature on December 8, 2016.
ISAT should be able to repay the maturing Bond and Sukuk Ijarah using its internal fund.
As of September 30, 2016, it had cash and cash equivalents amounting to IDR2.4 trillion.
On 9 August 2016, Fitch Ratings Indonesia has assigned National Long-Term Ratings of
'AAA(idn)' to PT Indosat Tbk's (Indosat Ooredoo: Long-Term IDR BBB/National Rating
AAA(idn)/Stable) IDR3,172bn senior unsecured bonds and IDR288bn sukuk ijarah issues.
The issues are launched from Indosat Ooredoo's IDR9trn bond programme and IDR1trn
sukuk ijarah programme - affirmed at 'AAA(idn)' on 15 March 2016 - and are consequently
rated at the same level as the programmes.
PT Indosat Tbk – FY 2016 Results
25
Debt maturity profile*
In IDR trillion
5.94
3.62
2.56
2.08
0.95
1.88
2017
0.27
0.27
2018
2019
2020
1.10
2021
0.81
2022
0.12
0.36
2023
2024
0.26
2025
2026
IDR
USD in IDR
* Excluding obligation under capital lease
PT Indosat Tbk – FY 2016 Results
26
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 – FY 2016 Results
27
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 – FY 2016 Results
28