9M14 Conference Call Presentation Final
PT Telekomunikasi Indonesia, Tbk.
9M14 Results
October, 2014
Disclaimer
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
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.
2
Content
1. Telkom in Brief
1
Telkom in Brief
2. Financial and Operational Results
3
T lk
Telkom
iin B
Brief
i f
4
Business and Customer Portfolio
Business and Customer Portfolio
Telecommunication
Information
Media & Edutainment
POTS
Premise Integration Services
M di P TV & FTA
Media : Pay
TV & FTA
FWA
Content / Portal
Mobile / Cellular
VA, Managed App &
Performance/ITO
International Services
International Services
E‐Payment
y
Broadband
ITeS (BPO, KPO)
Network Services
S
Service
T
Tower
Retail
Wholesale
Personal Consumer/Home
SME
Enterprise
OLO ( Other Licensed Operators )
International
5
Telkom and Subsidiaries
6
Current Ownership
Current Ownership
Government 52.6%
Public
Public
Telkom Indonesia is listed at
Indonesia Stock Exchange (TLKM IJ)
and New York Stock Exchange (TLK
US)
47.4%
47.4%
Treasury Shares 2.6%
Total Shares
Total Shares
100,799,996,400 shares
Market Capitalization at IDX
Market Capitalization at IDX
TOP 3
Rp293.8Tn
*) as of September 30, 2014
7
Financial and Operational
Res lts
Results
8
Highlights
Well maintained strong financial results
Consol Revenue grew 7.1% YoY to Rp65.8tn
Tsel Revenue grew by 10.0% YoY to Rp48.4tn
Gaining remarkable subscribers growth
Broadband users grew 31.8% YoY to more than 29.8mn*)
Cellular subscribers ggrew 8.9% YoY to 139.3mn
*) exclude PAYU
Telkomsel continues the leadership in network quality and coverage
Total BTS 83 346 units, a 26.9% YoY growth
Total BTS 83,346
units a 26 9% YoY growth
3G BTS 37,082 units, a 58.2% YoY growth.
New BTS 9M14 13,482 units, a 18.7% YoY growth, average ±1,500 BTS/month
Telkom recorded a strong operational and financial results in 9M14
9
Data Services
Data Services
Users (Million)
Revenues (Rp Tn)
Mobile Data
Speedy
▲ 14.8%
▲ 32.9%
3.3
▲ 14.1%
10.0
2.9
76
7.6
Fixed Bband
Fi d Bb d
▲ 8.0%
55.3
63.5
9M13
9M14
3.7
34
3.4
▲ 14.8%
Mobile Data
9M13
9M14
Data services, especially mobile data, is being the growth driver
10
Revenues YoY (Rp Tn)
Revenues YoY
(Rp Tn)
9M13
▲ 7.1%
9M14
3.3
6.4
▲ 15.4%
▲ 5.8%
9.6
9.9
10.0
7.3
26,915
61.5
65.8
25,032
23,665
23,333
Cellular SMS
Data Comm Oth
Others
9M13
9M14
▼8.5%
7,395 6,770
▲ 0.1%
3,633 3,636
9M13
9M14
TOTAL
Cellular voice
Fixed line voice Data, Internet, & Interconnection
IT
▼7.5%
911
843
Network
▲ 3.2%
2 562 2,645
2,562
2 645
Other
Note: “Other” among others consists of CPE, Pay TV, Leased Revenue, Directory
Assistance, USO and Modem Sales
11
Expenses YoY (Rp Tn)
Expenses YoY
(Rp Tn)
▲ 8.7%
▲ 17.6%
9M13
9M14
16,606
▲ 8.7%
14,115
12,036
11,072
43.7
40.2
▲ 3.6%
6,967 7,215
▲ 1.2%
▲ 9.9%
▼0.3%
2,105 2,314
2,398 2,390
Marketing
G&A
3,680
,
3,636
,
9M13
9M14
O&M
Personnel
Interconnection
▼
▼454.2%
D&A
(96) (532)
Other
TOTAL
12
Cellular Industry : TSEL Profile
TSEL Population Coverage
2G: ± 95% | 3G: ± 60%
Papua, Maluku,
Sulawesi, Kalimantan
Sulawesi, Kalimantan
CB portion: 22%
Sumatera
CB portion: 29%
Greater Jakarta &
West Java
CB portion: 22%
Java & Bali
CB portion: 27%
Industry Overview
1.
2.
3.
Occupied by 9 players (4 GSM+5 CDMA), telco industry is
mature with estimated 130% SIM penetration (± 75%
population‐based
penetration).
Relatively
stable
competition in legacy businesses.
Early stage in data business with around 50% data users
and 25% smartphone penetration.
penetration
Tremendous growth in digital business; data traffic grew
by 146% YoY and data revenue grew by 32% in 9M‐14.
Subscriber Market Share (Estimated)
56%
44%
TSEL
Others
9M13
9M14
Diff.
TSEL
40%
44%
4ppt
Others
60%
56%
‐4ppt
Source: Company’s Data & Market Intelligence
13
Cellular: 9M14 Digital Business
YEAR‐ON‐YEAR
YEAR
ON YEAR ACHIEVEMENT
ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+32%
DATA ENABLED
CUSTOMER
In Million
DATA TRAFFIC
In PB
11.1
155.9
63 5
63.5
55.3
8.4
33%
10.0
Broadband
7.6
Digital
Services
0.8
1.1
9M‐13
9M‐14
3G DEVICE
CAPABLE
In Million
Telkomsel
Flash
63.4
15%
28%
BlackBerry
146%
Digital Services:
- Digital Lifestyle
9M‐13
9M‐14
9M‐13
3G BTS
ROLL OUT
9M‐14
- Digital Advertising
- Digital Payment & Mobile Banking
3G BTS
ON AIR
In Thousand
In Thousand
10.0
35.4
37.1
8.0
23.4
20.0
25%
76%
9M‐13
Broadband:
9M‐14
9M‐13
58%
9M‐14
9M‐13
9M‐14
14
Cellular: 9M14 Solid Revenue
YEAR ON YEAR ACHIEVEMENT
YEAR‐ON‐YEAR ACHIEVEMENT
REVENUE
In Trillion
+10%
44.0
Digital
Business
In Trillion
8.4
48.4
32%
NET INCOME
EBITDA
26.8
25.4
13 8
13.8
13 1
13.1
11.1
35.6
5%
5%
9M‐13
9M‐14
58%
74.0
66.6
55%
CUSTOMER
TOTAL ASSET
I Trillion
In
T illi
1ppt
37.3
9M‐13
9M
13
9M 14
9M‐14
Margin
I Million
In
Milli
9M‐13
9M‐14
9M‐13
30%
29%
BTS ROLL OUT
BTS ON AIR
I Thousand
In
Th
d
I Thousand
In
Th
d
+19%
139.3
127.9
11%
+27%
83.3
13.5
8.0
9%
3.3
9M‐14
9M‐13
Debt to Equity Ratio (DER)*:
Sep-14: 7% (Sep-13: 5%)
*) excluding obligation under finance lease
9M‐14
9M‐14
Margin
11.4
9M‐13
20%
19%
6%
Legacy
CAPEX TO
REVENUE
In Trillion
9M‐13
65.7
25%
3%
10.0
3G
23.4
3.4
2G
42.2
9M‐14
9M‐13
58%
37.1
3G
10%
46.3
2G
9M‐14
Free Cash
F
C h Flow
Fl
Sep-14: Rp14.0tn (Sep-13: Rp14.4tn)
15
Corporate Actions in 9M14
Corporate Actions in 9M14
• PINS Indonesia Acquire 25% of Tiphone
PINS Indonesia Acquire 25% of Tiphone Shares
• Telkom Redirecting Flexi’s Customers to
Telkomsel
• Telkom
Telkom and Telstra formed a JV for Network
and Telstra formed a JV for Network
Application Services (NAS)
• A
Acquisition of Majority Shareholding in
i iti
f M j it Sh h ldi i
Contact Centre Australia (CCA)
16
2014 Company Outlooks
Continue to Deliver Value to Shareholders
Revenue Growth
In line with or slightly above the market for
both TLKM Consolidated and Telkomsel
EBITDA Margin
Slight decline for both TLKM Consolidated
and
d for Telkomsel
f T lk
l
C
Capex
Group
Group (Consolidated): 20‐25% over Revenue
(Consolidated): 20‐25% over Revenue
Allocation:
Telkomsel: 70%
TLKM & Others: 30%
TLKM & Others: 30%
17
Thank You
9M14 Results
October, 2014
Disclaimer
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
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.
2
Content
1. Telkom in Brief
1
Telkom in Brief
2. Financial and Operational Results
3
T lk
Telkom
iin B
Brief
i f
4
Business and Customer Portfolio
Business and Customer Portfolio
Telecommunication
Information
Media & Edutainment
POTS
Premise Integration Services
M di P TV & FTA
Media : Pay
TV & FTA
FWA
Content / Portal
Mobile / Cellular
VA, Managed App &
Performance/ITO
International Services
International Services
E‐Payment
y
Broadband
ITeS (BPO, KPO)
Network Services
S
Service
T
Tower
Retail
Wholesale
Personal Consumer/Home
SME
Enterprise
OLO ( Other Licensed Operators )
International
5
Telkom and Subsidiaries
6
Current Ownership
Current Ownership
Government 52.6%
Public
Public
Telkom Indonesia is listed at
Indonesia Stock Exchange (TLKM IJ)
and New York Stock Exchange (TLK
US)
47.4%
47.4%
Treasury Shares 2.6%
Total Shares
Total Shares
100,799,996,400 shares
Market Capitalization at IDX
Market Capitalization at IDX
TOP 3
Rp293.8Tn
*) as of September 30, 2014
7
Financial and Operational
Res lts
Results
8
Highlights
Well maintained strong financial results
Consol Revenue grew 7.1% YoY to Rp65.8tn
Tsel Revenue grew by 10.0% YoY to Rp48.4tn
Gaining remarkable subscribers growth
Broadband users grew 31.8% YoY to more than 29.8mn*)
Cellular subscribers ggrew 8.9% YoY to 139.3mn
*) exclude PAYU
Telkomsel continues the leadership in network quality and coverage
Total BTS 83 346 units, a 26.9% YoY growth
Total BTS 83,346
units a 26 9% YoY growth
3G BTS 37,082 units, a 58.2% YoY growth.
New BTS 9M14 13,482 units, a 18.7% YoY growth, average ±1,500 BTS/month
Telkom recorded a strong operational and financial results in 9M14
9
Data Services
Data Services
Users (Million)
Revenues (Rp Tn)
Mobile Data
Speedy
▲ 14.8%
▲ 32.9%
3.3
▲ 14.1%
10.0
2.9
76
7.6
Fixed Bband
Fi d Bb d
▲ 8.0%
55.3
63.5
9M13
9M14
3.7
34
3.4
▲ 14.8%
Mobile Data
9M13
9M14
Data services, especially mobile data, is being the growth driver
10
Revenues YoY (Rp Tn)
Revenues YoY
(Rp Tn)
9M13
▲ 7.1%
9M14
3.3
6.4
▲ 15.4%
▲ 5.8%
9.6
9.9
10.0
7.3
26,915
61.5
65.8
25,032
23,665
23,333
Cellular SMS
Data Comm Oth
Others
9M13
9M14
▼8.5%
7,395 6,770
▲ 0.1%
3,633 3,636
9M13
9M14
TOTAL
Cellular voice
Fixed line voice Data, Internet, & Interconnection
IT
▼7.5%
911
843
Network
▲ 3.2%
2 562 2,645
2,562
2 645
Other
Note: “Other” among others consists of CPE, Pay TV, Leased Revenue, Directory
Assistance, USO and Modem Sales
11
Expenses YoY (Rp Tn)
Expenses YoY
(Rp Tn)
▲ 8.7%
▲ 17.6%
9M13
9M14
16,606
▲ 8.7%
14,115
12,036
11,072
43.7
40.2
▲ 3.6%
6,967 7,215
▲ 1.2%
▲ 9.9%
▼0.3%
2,105 2,314
2,398 2,390
Marketing
G&A
3,680
,
3,636
,
9M13
9M14
O&M
Personnel
Interconnection
▼
▼454.2%
D&A
(96) (532)
Other
TOTAL
12
Cellular Industry : TSEL Profile
TSEL Population Coverage
2G: ± 95% | 3G: ± 60%
Papua, Maluku,
Sulawesi, Kalimantan
Sulawesi, Kalimantan
CB portion: 22%
Sumatera
CB portion: 29%
Greater Jakarta &
West Java
CB portion: 22%
Java & Bali
CB portion: 27%
Industry Overview
1.
2.
3.
Occupied by 9 players (4 GSM+5 CDMA), telco industry is
mature with estimated 130% SIM penetration (± 75%
population‐based
penetration).
Relatively
stable
competition in legacy businesses.
Early stage in data business with around 50% data users
and 25% smartphone penetration.
penetration
Tremendous growth in digital business; data traffic grew
by 146% YoY and data revenue grew by 32% in 9M‐14.
Subscriber Market Share (Estimated)
56%
44%
TSEL
Others
9M13
9M14
Diff.
TSEL
40%
44%
4ppt
Others
60%
56%
‐4ppt
Source: Company’s Data & Market Intelligence
13
Cellular: 9M14 Digital Business
YEAR‐ON‐YEAR
YEAR
ON YEAR ACHIEVEMENT
ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+32%
DATA ENABLED
CUSTOMER
In Million
DATA TRAFFIC
In PB
11.1
155.9
63 5
63.5
55.3
8.4
33%
10.0
Broadband
7.6
Digital
Services
0.8
1.1
9M‐13
9M‐14
3G DEVICE
CAPABLE
In Million
Telkomsel
Flash
63.4
15%
28%
BlackBerry
146%
Digital Services:
- Digital Lifestyle
9M‐13
9M‐14
9M‐13
3G BTS
ROLL OUT
9M‐14
- Digital Advertising
- Digital Payment & Mobile Banking
3G BTS
ON AIR
In Thousand
In Thousand
10.0
35.4
37.1
8.0
23.4
20.0
25%
76%
9M‐13
Broadband:
9M‐14
9M‐13
58%
9M‐14
9M‐13
9M‐14
14
Cellular: 9M14 Solid Revenue
YEAR ON YEAR ACHIEVEMENT
YEAR‐ON‐YEAR ACHIEVEMENT
REVENUE
In Trillion
+10%
44.0
Digital
Business
In Trillion
8.4
48.4
32%
NET INCOME
EBITDA
26.8
25.4
13 8
13.8
13 1
13.1
11.1
35.6
5%
5%
9M‐13
9M‐14
58%
74.0
66.6
55%
CUSTOMER
TOTAL ASSET
I Trillion
In
T illi
1ppt
37.3
9M‐13
9M
13
9M 14
9M‐14
Margin
I Million
In
Milli
9M‐13
9M‐14
9M‐13
30%
29%
BTS ROLL OUT
BTS ON AIR
I Thousand
In
Th
d
I Thousand
In
Th
d
+19%
139.3
127.9
11%
+27%
83.3
13.5
8.0
9%
3.3
9M‐14
9M‐13
Debt to Equity Ratio (DER)*:
Sep-14: 7% (Sep-13: 5%)
*) excluding obligation under finance lease
9M‐14
9M‐14
Margin
11.4
9M‐13
20%
19%
6%
Legacy
CAPEX TO
REVENUE
In Trillion
9M‐13
65.7
25%
3%
10.0
3G
23.4
3.4
2G
42.2
9M‐14
9M‐13
58%
37.1
3G
10%
46.3
2G
9M‐14
Free Cash
F
C h Flow
Fl
Sep-14: Rp14.0tn (Sep-13: Rp14.4tn)
15
Corporate Actions in 9M14
Corporate Actions in 9M14
• PINS Indonesia Acquire 25% of Tiphone
PINS Indonesia Acquire 25% of Tiphone Shares
• Telkom Redirecting Flexi’s Customers to
Telkomsel
• Telkom
Telkom and Telstra formed a JV for Network
and Telstra formed a JV for Network
Application Services (NAS)
• A
Acquisition of Majority Shareholding in
i iti
f M j it Sh h ldi i
Contact Centre Australia (CCA)
16
2014 Company Outlooks
Continue to Deliver Value to Shareholders
Revenue Growth
In line with or slightly above the market for
both TLKM Consolidated and Telkomsel
EBITDA Margin
Slight decline for both TLKM Consolidated
and
d for Telkomsel
f T lk
l
C
Capex
Group
Group (Consolidated): 20‐25% over Revenue
(Consolidated): 20‐25% over Revenue
Allocation:
Telkomsel: 70%
TLKM & Others: 30%
TLKM & Others: 30%
17
Thank You