TLKM 1H15 Results FINAL 04agust15
PT Telkom Indonesia (Persero) Tbk
The First Half 2015 Results
August 4, 2015
Disclaimer
This document may contain forward-looking statements within the meaning of safeharbor. Actual results could differ materially from projections, estimations or
expectations. These may involve risks and uncertainties, and may cause actual results
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.
1
Content
1. Telkom in Brief
2. 1H15 Financial and Operational Results
3. Company Guidance 2015
Telkom in Brief
2
Telkom and Subsidiaries
Government
Public
52.6%
Mobile
Business
47.4%
Multimedia
Business
International
Business
Infrastructure
Business
Singapore
Hongkong
Timorleste
Australia
Macau
Arab Saudi
USA
Malaysia
New Zeland
Myanmar
Note :
T : Telecommunication
IME : Information, Media & Edutainment
Affiliation
Telkom Group Portfolios
Well diversified business portfolio: 9 Product Portfolios and 6 Customer Portfolios
10
ME
Digital Life
Digital Home
7
I
• Managed Apps & SI
• BPM
• Premise Integration
• E-Payment
• DataCenter & Cloud
• M2M
Platform
Services
Product
Portfolio
T
• Fixed Phone
• Fixed Broadband
• WiFi
Fixed
Services
1
Big
Data
5
Mobile
Services
2
11
E-Health
E-Tourism
E-Transportation
E-Gov
Ecosystem
Solution
6
• Interconnection &
International Traffic
• Network Service
• Satellite
• Tower
• Full Mobility
• Limited
Mobility
2
9
•
•
•
•
Big Data
4
Digital Advertising
8
NW & Infra
Services
12
Customer
Portfolio
Services
1
13
14Government
15
16
3
3
Current Ownership
Government
52.6%
Public
47.4%
Telkom Indonesia is listed at
Indonesia
Stock
Exchange
(Bloomberg: TLKM IJ) and New York
Stock Exchange (Bloomberg: TLK US)
Treasury Shares 2.6%
Total Shares
Market Capitalization at IDX
100,799,996,400 shares
Rp295.3Tn*
*) as of June 30, 2015
1H15 Financial
and Operational Results
4
1H15 Performance Highlights
Consolidated Revenue grew by 12.2% Year-on-Year (YoY) with EBITDA and Net
Income grew by 6.3% and 2.2% YoY, respectively.
Telkomsel Revenue grew by 13.0%, EBITDA by 10.7%, and Net Income by 14.7% YoY.
Data, Internet, and IT Services (exclude SMS) recorded the highest revenue
growth, with 28.3% increase.
Telkomsel’s digital business grew by 37.6%, with data traffic jumped 121.4%.
Telkomsel installed 11,495 new BTS, of which around 90% were 3G/4G BTS
Telkomsel expands its 4G LTE network and services in 7 key cities
(Jakarta, Bali, Bandung, Surabaya, Medan, Makassar and Lombok)
1H15 Operational Results
Telkom Operational:
• Fixed line subs increase 7.0% to 10.2 million
• Fixed broadband users increased 15.9% YoY to
3.7 million, contributed by IndiHome Triple Play
Telkomsel Operational:
• 3.5 mn net add in 1H15. Total customers: 144.1 mn
• Mobile data payload jumped 121.4%. 3G/4G
capable device users grew 54.2% to 48.1 million.
• Added 11,495 new BTSs in 1H15
5
Strong Revenue Growth, Driven by
Data Business
Revenue YoY (Rp Trillion)
▲ 12.2%
▲ 7.8%
17.7
▲28.3%
16.4
1H14
1H15
14.9
11.6
▲ 6.8%
48.8
43.5
▼ 5.6%
7.1
6.6
4.6
4.4
▲ 36.3%
1.9
1H14
Cellular voice
1H15
TOTAL
Data, Internet, &
IT (excl SMS)
SMS
2.5
▼ 6.1%
2.4
2.2
Fixed line voice Network & Other Interconnection
telco services
Note: “Other” among others consists of CPE, Infrastructure Lease, Directory Assistance and USO.
Strong Normalized EBITDA & Net Income Growth
(Excluding Early Retirement Program)
EBITDA (Rp Tn)
▲ 6.3%
22.1
Net Income (Rp Tn)
▲ 2.2%
23.5
7.3
7.4
Without ERP :
EBITDA growth 10.2%
Net Income growth 11.3%.
1H14
1H15
1H14
1H15
6
Increased Operating Expenses in line with
Infrastructure Development
Operating Expenses YoY (Rp Trillion)
-TSEL BTS increased 21.8%
-IndiHome roll-out
-Additional backbone
▲ 14.4%
▲ 30.3%
14.0
ERP amounting Rp844
billion in 1H15
▲ 7.7%
10.8
33.7
8.2
29.5
8.8
1H14
1H15
▲ 23.0%
5.9
▼ 23.3%
4.8
2.5
1H14
1H15
O&M
TOTAL
D&A
Personnel
▲ 9.2%
2.0
1.8
Interconnection
▼ 2.8%
▼ 287,6%
2.0
G&A
1.5
(1.9) (0.7)
1.4
Marketing
Others
Note: others included (gain)/loss on forex
Telkomsel: Triple Double-Digit Growth
YEAR-ON-YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
In Trillion
+13%
35.4
31.3
Digital
Business
7.0
38%
NET INCOME
In Trillion
In Trillion
CAPEX
PAID
19.2
17.4
9.7
10.1
8.8
6.0
-4%
15%
Legacy
24.3
6%
25.7
1H-14
1H-15
1H-14
Margin
1H-15
1H-14
TOTAL ASSET
In Trillion
56%
1H-14
1H-15
CUSTOMER
In Million
28%
29%
BTS ON AIR
BTS ROLL OUT
In Thousand
+22%
In Thousand
+19%
144.1
5%
14%
7.2
2.5
1H-15
1H-14
11.5
0.9 4G
9.7
0.0
78.8
69.2
1H-15
Margin
54%
137.4
1H-14
5.8
11%
1H-15
1H-14
29%
9.3
-50%
79.6
0.0
34.3
96.9
1.1
4G
41%
48.2
3G
5%
47.6
2G
3G
45.3
1.2 2G
1H-15
1H14
1H15
14
7
Telkomsel: Continued Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+38%
Broadband:
Broadband
Digital
Services
In PB
207.2
9.7
66.1
63.3
7.0
38%
8.8
0.7
1H-14
0.9
1H-15
1H-14
In Thousand
31.2
4G
7.2
0.0
3G
7.2
54%
1H-15
1H-14
1H-15
1H-14
Digital Services:
1H-15
-
Digital Lifestyle
Digital Advertising
Digital Payment & Mobile Banking
M2M
3G & 4G BTS
ON AIR
In Thousand
48.1
1H-14
121%
3G & 4G BTS
ROLL OUT
3G/4G CAPABLE
DEVICE
In Million
93.6
4%
6.4
37%
DATA TRAFFIC
DATA USER
In Million
29%
49.3
1.1
10.3
0.9
4G
34.3
0.0
9.3
3G
34.3
1H-15
41%
1H-14
48.2
1H-15
15
Strengthen Footprint on 4G LTE
On July 6, 2015 Telkomsel officially used 1800 MHz spectrum
for 4G LTE services.
Now available in 7 cities:
Jakarta, Bali, Bandung, Surabaya, Medan, Makassar and
Lombok. More cities to come.
Current subscribers: 655,000
16
8
Recent Development
Fixed Broadband/Capex
International Expansion
3.7 mn Fixed Broadband subs
427 thousand Indihome subs
To acquire Guam
GTA. Expected
closing by end 2015.
1H2015 Capex: Rp11.9 Tn
Telkomsel: Rp5.8 Tn
Telkom & Other Subs: Rp6.1 Tn
To build data center in
Jurong Singapore of
20,000 M2
HR & Corporate Finance
Early Retirement Program
Employee: 692 persons
Expenses: Rp844 Bn
Current Development
Regulation
Review on Interconnection tariff
1800 Mhz spectrum rearrangement:
expected completion by end 2015
Telkom Bond I
Rp7 trillion bonds in June 2015
Tenor: 7 yrs, 10 yrs, 15 yrs, 30 yrs to
support infrastructure development
Mitratel Deal
CSEA is in the process of termination.
Company Guidance 2015
9
2015 Management Guidance
Revenue Growth
In line with or slightly above the market for TLKM and
Telkomsel, with focus on strengthening mobile broadband and
accellerated fixed broadband through triple play and FTTH
EBITDA Margin
Slightly decline for TLKM and Telkomsel in line with
accellerated investment in digital business
Main Program
Mobile Business
1. Protect Legacy Business
2. Strengthen The Core
3. Trigger Digital Services
Maintain double digit growth
Grow digital business
Indonesia Digital Network
1. ID-Ring
2. ID-Access
3. ID-Convergence
Turn-around fixed line
Drive digital business
International Expansion
1. Follow the People
2. Follow the Network
3. Follow the Traffic & Money
Stretch & Expand int’l business
Strengthen footprint in regional
19
10
Jayalah Indonesia !
Jayalah Telkom Indonesia !
Thank You
11
The First Half 2015 Results
August 4, 2015
Disclaimer
This document may contain forward-looking statements within the meaning of safeharbor. Actual results could differ materially from projections, estimations or
expectations. These may involve risks and uncertainties, and may cause actual results
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.
1
Content
1. Telkom in Brief
2. 1H15 Financial and Operational Results
3. Company Guidance 2015
Telkom in Brief
2
Telkom and Subsidiaries
Government
Public
52.6%
Mobile
Business
47.4%
Multimedia
Business
International
Business
Infrastructure
Business
Singapore
Hongkong
Timorleste
Australia
Macau
Arab Saudi
USA
Malaysia
New Zeland
Myanmar
Note :
T : Telecommunication
IME : Information, Media & Edutainment
Affiliation
Telkom Group Portfolios
Well diversified business portfolio: 9 Product Portfolios and 6 Customer Portfolios
10
ME
Digital Life
Digital Home
7
I
• Managed Apps & SI
• BPM
• Premise Integration
• E-Payment
• DataCenter & Cloud
• M2M
Platform
Services
Product
Portfolio
T
• Fixed Phone
• Fixed Broadband
• WiFi
Fixed
Services
1
Big
Data
5
Mobile
Services
2
11
E-Health
E-Tourism
E-Transportation
E-Gov
Ecosystem
Solution
6
• Interconnection &
International Traffic
• Network Service
• Satellite
• Tower
• Full Mobility
• Limited
Mobility
2
9
•
•
•
•
Big Data
4
Digital Advertising
8
NW & Infra
Services
12
Customer
Portfolio
Services
1
13
14Government
15
16
3
3
Current Ownership
Government
52.6%
Public
47.4%
Telkom Indonesia is listed at
Indonesia
Stock
Exchange
(Bloomberg: TLKM IJ) and New York
Stock Exchange (Bloomberg: TLK US)
Treasury Shares 2.6%
Total Shares
Market Capitalization at IDX
100,799,996,400 shares
Rp295.3Tn*
*) as of June 30, 2015
1H15 Financial
and Operational Results
4
1H15 Performance Highlights
Consolidated Revenue grew by 12.2% Year-on-Year (YoY) with EBITDA and Net
Income grew by 6.3% and 2.2% YoY, respectively.
Telkomsel Revenue grew by 13.0%, EBITDA by 10.7%, and Net Income by 14.7% YoY.
Data, Internet, and IT Services (exclude SMS) recorded the highest revenue
growth, with 28.3% increase.
Telkomsel’s digital business grew by 37.6%, with data traffic jumped 121.4%.
Telkomsel installed 11,495 new BTS, of which around 90% were 3G/4G BTS
Telkomsel expands its 4G LTE network and services in 7 key cities
(Jakarta, Bali, Bandung, Surabaya, Medan, Makassar and Lombok)
1H15 Operational Results
Telkom Operational:
• Fixed line subs increase 7.0% to 10.2 million
• Fixed broadband users increased 15.9% YoY to
3.7 million, contributed by IndiHome Triple Play
Telkomsel Operational:
• 3.5 mn net add in 1H15. Total customers: 144.1 mn
• Mobile data payload jumped 121.4%. 3G/4G
capable device users grew 54.2% to 48.1 million.
• Added 11,495 new BTSs in 1H15
5
Strong Revenue Growth, Driven by
Data Business
Revenue YoY (Rp Trillion)
▲ 12.2%
▲ 7.8%
17.7
▲28.3%
16.4
1H14
1H15
14.9
11.6
▲ 6.8%
48.8
43.5
▼ 5.6%
7.1
6.6
4.6
4.4
▲ 36.3%
1.9
1H14
Cellular voice
1H15
TOTAL
Data, Internet, &
IT (excl SMS)
SMS
2.5
▼ 6.1%
2.4
2.2
Fixed line voice Network & Other Interconnection
telco services
Note: “Other” among others consists of CPE, Infrastructure Lease, Directory Assistance and USO.
Strong Normalized EBITDA & Net Income Growth
(Excluding Early Retirement Program)
EBITDA (Rp Tn)
▲ 6.3%
22.1
Net Income (Rp Tn)
▲ 2.2%
23.5
7.3
7.4
Without ERP :
EBITDA growth 10.2%
Net Income growth 11.3%.
1H14
1H15
1H14
1H15
6
Increased Operating Expenses in line with
Infrastructure Development
Operating Expenses YoY (Rp Trillion)
-TSEL BTS increased 21.8%
-IndiHome roll-out
-Additional backbone
▲ 14.4%
▲ 30.3%
14.0
ERP amounting Rp844
billion in 1H15
▲ 7.7%
10.8
33.7
8.2
29.5
8.8
1H14
1H15
▲ 23.0%
5.9
▼ 23.3%
4.8
2.5
1H14
1H15
O&M
TOTAL
D&A
Personnel
▲ 9.2%
2.0
1.8
Interconnection
▼ 2.8%
▼ 287,6%
2.0
G&A
1.5
(1.9) (0.7)
1.4
Marketing
Others
Note: others included (gain)/loss on forex
Telkomsel: Triple Double-Digit Growth
YEAR-ON-YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
In Trillion
+13%
35.4
31.3
Digital
Business
7.0
38%
NET INCOME
In Trillion
In Trillion
CAPEX
PAID
19.2
17.4
9.7
10.1
8.8
6.0
-4%
15%
Legacy
24.3
6%
25.7
1H-14
1H-15
1H-14
Margin
1H-15
1H-14
TOTAL ASSET
In Trillion
56%
1H-14
1H-15
CUSTOMER
In Million
28%
29%
BTS ON AIR
BTS ROLL OUT
In Thousand
+22%
In Thousand
+19%
144.1
5%
14%
7.2
2.5
1H-15
1H-14
11.5
0.9 4G
9.7
0.0
78.8
69.2
1H-15
Margin
54%
137.4
1H-14
5.8
11%
1H-15
1H-14
29%
9.3
-50%
79.6
0.0
34.3
96.9
1.1
4G
41%
48.2
3G
5%
47.6
2G
3G
45.3
1.2 2G
1H-15
1H14
1H15
14
7
Telkomsel: Continued Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+38%
Broadband:
Broadband
Digital
Services
In PB
207.2
9.7
66.1
63.3
7.0
38%
8.8
0.7
1H-14
0.9
1H-15
1H-14
In Thousand
31.2
4G
7.2
0.0
3G
7.2
54%
1H-15
1H-14
1H-15
1H-14
Digital Services:
1H-15
-
Digital Lifestyle
Digital Advertising
Digital Payment & Mobile Banking
M2M
3G & 4G BTS
ON AIR
In Thousand
48.1
1H-14
121%
3G & 4G BTS
ROLL OUT
3G/4G CAPABLE
DEVICE
In Million
93.6
4%
6.4
37%
DATA TRAFFIC
DATA USER
In Million
29%
49.3
1.1
10.3
0.9
4G
34.3
0.0
9.3
3G
34.3
1H-15
41%
1H-14
48.2
1H-15
15
Strengthen Footprint on 4G LTE
On July 6, 2015 Telkomsel officially used 1800 MHz spectrum
for 4G LTE services.
Now available in 7 cities:
Jakarta, Bali, Bandung, Surabaya, Medan, Makassar and
Lombok. More cities to come.
Current subscribers: 655,000
16
8
Recent Development
Fixed Broadband/Capex
International Expansion
3.7 mn Fixed Broadband subs
427 thousand Indihome subs
To acquire Guam
GTA. Expected
closing by end 2015.
1H2015 Capex: Rp11.9 Tn
Telkomsel: Rp5.8 Tn
Telkom & Other Subs: Rp6.1 Tn
To build data center in
Jurong Singapore of
20,000 M2
HR & Corporate Finance
Early Retirement Program
Employee: 692 persons
Expenses: Rp844 Bn
Current Development
Regulation
Review on Interconnection tariff
1800 Mhz spectrum rearrangement:
expected completion by end 2015
Telkom Bond I
Rp7 trillion bonds in June 2015
Tenor: 7 yrs, 10 yrs, 15 yrs, 30 yrs to
support infrastructure development
Mitratel Deal
CSEA is in the process of termination.
Company Guidance 2015
9
2015 Management Guidance
Revenue Growth
In line with or slightly above the market for TLKM and
Telkomsel, with focus on strengthening mobile broadband and
accellerated fixed broadband through triple play and FTTH
EBITDA Margin
Slightly decline for TLKM and Telkomsel in line with
accellerated investment in digital business
Main Program
Mobile Business
1. Protect Legacy Business
2. Strengthen The Core
3. Trigger Digital Services
Maintain double digit growth
Grow digital business
Indonesia Digital Network
1. ID-Ring
2. ID-Access
3. ID-Convergence
Turn-around fixed line
Drive digital business
International Expansion
1. Follow the People
2. Follow the Network
3. Follow the Traffic & Money
Stretch & Expand int’l business
Strengthen footprint in regional
19
10
Jayalah Indonesia !
Jayalah Telkom Indonesia !
Thank You
11