Investor Summit 2011 20111005 final
PT. Telekomunikasi Indonesia, Tbk
Investor Summit 2011
Jakarta, October 5th, 2011
Disclaimer
This document contains financial conditions and result of operation, and may also
contain certain projections, plans, strategies, and objectives of the Company, which
would be treated as forward looking statements within the meaning of applicable
law.
Forward looking statements, by their nature, involve risk and uncertainty that
could cause actual results and development to differ materially from those
expressed or implied in these statements.
Telkom Indonesia does not guarantee that any action, which should have been
taken in reliance on this document will bring specific results as expected.
2
Telkom Indonesia
in Brief
Telkom Indonesia Ownership
Telkom Indonesia is the largest telecommunication
company and network provider in Indonesia, majority
owned by the Government of Indonesia
(Total shares = 20,159,999,280, including 1 Dwiwarna share series A)
Telkom Indonesia is listed at
Indonesia Stock Exchange (IDX), New
York Stock Exchange (NYSE), London
Stock Exchange (LSE) and also Publicly
Offering Without Listing (POWL)
as of June 30, 2011
Government
10,320,470,712
Local
2,102,511,798
Foreign
7,204,741,770
52.58%
10.71%
36.71%
Treasury Stock
532,275,000
4
Highlights of 1H11 Results
• Cellular customer base grew strongly by 15.8% year on year
(“YoY”) to 102.3 million customers with net add for 2Q11 of 2.9
million new customers.
• Our broadband service recorded a 63.7% growth in the number of
subscribers to 7.2 million in 1H11.
• Data, internet and IT revenues performed well, contributing 33.5%
to total revenues in 1H11 and during this period the revenues
increased by 11.8%. Our fixed broadband revenues is Rp1,964
billion and Rp2,197 billion for our mobile broadband revenues.
5
Business Results
(Operational & Financial)
6
Cellular Business
As of June 30, 2011, we remained the largest national licensed provider of cellular
services in Indonesia with around 46% market share.
1H10
1H11
Cellular
Subscribers (‘000)
88,316
102,291
BTS (unit)
34,005
39,609
MoU (Bn minutes)
59
83
ARPU – blended (Rp’000)
43
38
Revenue (Rp Bn)*
14,161 **
13,532
Growth (%)
16%
17%
41%
12%
4%
Note : *) Voice cellular revenue
**) As Restated. Please refer to our Consolidated Financial Statements Note 2p
7
Broadband Business
1H10
1H11
Subscribers (‘000)
1,416
2,000
Revenue (Rp Bn)
1,728
1,964
228
181
21%
User (‘000)
2,976
5,190
74%
Revenue (Rp Bn)*
1,417
2,197
27
24
Fixed broadband/Speedy:
ARPU (Rp‘000)
Mobile broadband/Flash:
ARPU (Rp‘000)
Growth (%)
41%
14 %
55%
11%
Note: *) Broadband covered: Access Data Package (Flash), Pay as you use
(Rp.5/kB + Rp.1/kB) and Blackberry
8
Fixed Line Business
1H10
1H11
8,397
8,420
106
101
5%
15,896
18,736
18%
Fixed Wireline
Line in Service/LIS (‘000)
ARPU (‘000)
Fixed Wireless / Flexi
Subscribers (‘000)
BTS (unit)
5,552
5,705
MoU (Mn minutes)
6,153
4,528
ARPU – blended (Rp’000)
17
9
Fixed Line Revenues (Rp Bn)*
6,614 **
5,865
Growth (%)
0.3%
3%
26%
47%
11%
Note : *) Fixed Line revenues including monthly, usage and installation charges
**) As Restated. Please refer to our Consolidated Financial Statements Note 2p
9
Financial Highlights
(in Rp Tn )
Financial Position
FY10
1H11
Growth (%)
Total Assets
99.8
44.5
-
Total Liabilities
99.8
43.3
Total Equity (including noncontrolling interest)
56.4
55.3
2%
1H10
1H11
Growth (%)
33.7
22.4
18.8
55.7
34.5
23.5
18.1
52.4
4%
3%
Income for the period attributable
to owner of the parent
6.0
5.9
Income per Share (Rp)
307
302
Income Statement
Operating Revenues
Operating Expenses
EBITDA
EBITDA Margin (%)
3%
2%
5%
2%
2%
10
Income Statement (1/2)
Revenue contribution to total revenues
Total revenues
Rp34.4 Tn
14.2
13.5
42%
39%
11.5
1H10
9.7
34%
29%
1H11
(in Rp trillion)
6.6
5.9
20%
17%
1.8
5%
Cellular
Data, Internet & IT
Fixed Line
1.7
5%
Interconnection
0.6
2%
0.6
2%
Network
0.8
2%
1.2
3%
Other
11
Income Statement (2/2)
Expense contribution to total expenses
Total expenses
Rp23.5 Tn
8.3
7.9
35%
35%
7.4
33%
7.2
1H10
30%
1H11
(in Rp trillion)
O&M
Depr &
Amortization
3.5
3.9
15%
16%
Personnel
1.5
1.6
1.0
1.6
1.1
1.1
7%
7%
4%
7%
5%
5%
Interconnection
Marketing
G&A
12
Capital Expenditure (Capex)
(in Bn USD)
Other
Subsidiaries
Telkomsel
1.52
26%
0.27
Others
Coverage & Quality
71%
Telkomsel
0.73
Capacity
0.78
0.18
Allocation
Telkom
9%
0.41
Telkom
40%
0.52
Others
0.19
2011E
New Wave
1H11A
51%
Infrastructure
13
Recent Development
14
Human Resources - ERP
In September 2011, 762 Telkom’s employees participated in Early Retirement program
(ERP), the execution was done in early October 2011
34.0
32.5
30.2
28.8
26.8
27.7
in (‘000)
25.4
25.0
23.2
21.1
5.2
5.6
5.7
2008
2009
2010
Telkom as a parent
company
Subsidiaries
6.4
7.1
2006
2007
In five years, the parent company
workforces decreasing by 4,362
employees through early retirement
program.
15
Telkom Share Buy Back
Share Buy Back I-III
Carried out within 2005-2009
Numbers of shares bought: 490,574,500
Total amount of money spent Rp 4.263 Tn
Share Buy Back IV Program
Increasing Shareholders
Value
Telkom Financial
Performance
Optimize Cash
Excess
AGMS approved the
Company’s Share Buyback
Program IV amounting to
Rp5Tn,- over a maximum
period of 18 months.
Until September 29, 2011, Telkom has bought back 141.31Mn shares through the
Indonesia Stock Exchange (“IDX”) and New York Stock Exchange (“NYSE”)
amounting Rp1.03Tn or 21% of Rp5 trillion.
16
Telkom Backbone Infrastructure
Telkom continues to realize network infrastructure expansion of optical network
platform-based known as Nusantara Super Highway
Currently Telkom has around 21,000 km fiber optic backbone, consist of:
13,000 km terrestrial and 8,000 km submarine cable.
17
Towers
Through Mitratel, our wholly-owned subsidiary, we leverage our tower asset…
By end of 2011:
Own
2,500
Operate 3,500
TELKOM: 1,300 units
Telkomsel: 2,200 units
Towers
Towers owned by others
Tenancy Ratio
Target > 2x
18
Any further questions?
Contact Address :
Investor Relations
Grha Citra Caraka 5th floor
Jl. Jend. Gatot Subroto Kav. 52
Jakarta, 12710
Indonesia
Tel : +62-21-5215109
Fax : +62-21-5220500
Email : investor@telkom.co.id
Website: www.telkom.co.id
Investor Summit 2011
Jakarta, October 5th, 2011
Disclaimer
This document contains financial conditions and result of operation, and may also
contain certain projections, plans, strategies, and objectives of the Company, which
would be treated as forward looking statements within the meaning of applicable
law.
Forward looking statements, by their nature, involve risk and uncertainty that
could cause actual results and development to differ materially from those
expressed or implied in these statements.
Telkom Indonesia does not guarantee that any action, which should have been
taken in reliance on this document will bring specific results as expected.
2
Telkom Indonesia
in Brief
Telkom Indonesia Ownership
Telkom Indonesia is the largest telecommunication
company and network provider in Indonesia, majority
owned by the Government of Indonesia
(Total shares = 20,159,999,280, including 1 Dwiwarna share series A)
Telkom Indonesia is listed at
Indonesia Stock Exchange (IDX), New
York Stock Exchange (NYSE), London
Stock Exchange (LSE) and also Publicly
Offering Without Listing (POWL)
as of June 30, 2011
Government
10,320,470,712
Local
2,102,511,798
Foreign
7,204,741,770
52.58%
10.71%
36.71%
Treasury Stock
532,275,000
4
Highlights of 1H11 Results
• Cellular customer base grew strongly by 15.8% year on year
(“YoY”) to 102.3 million customers with net add for 2Q11 of 2.9
million new customers.
• Our broadband service recorded a 63.7% growth in the number of
subscribers to 7.2 million in 1H11.
• Data, internet and IT revenues performed well, contributing 33.5%
to total revenues in 1H11 and during this period the revenues
increased by 11.8%. Our fixed broadband revenues is Rp1,964
billion and Rp2,197 billion for our mobile broadband revenues.
5
Business Results
(Operational & Financial)
6
Cellular Business
As of June 30, 2011, we remained the largest national licensed provider of cellular
services in Indonesia with around 46% market share.
1H10
1H11
Cellular
Subscribers (‘000)
88,316
102,291
BTS (unit)
34,005
39,609
MoU (Bn minutes)
59
83
ARPU – blended (Rp’000)
43
38
Revenue (Rp Bn)*
14,161 **
13,532
Growth (%)
16%
17%
41%
12%
4%
Note : *) Voice cellular revenue
**) As Restated. Please refer to our Consolidated Financial Statements Note 2p
7
Broadband Business
1H10
1H11
Subscribers (‘000)
1,416
2,000
Revenue (Rp Bn)
1,728
1,964
228
181
21%
User (‘000)
2,976
5,190
74%
Revenue (Rp Bn)*
1,417
2,197
27
24
Fixed broadband/Speedy:
ARPU (Rp‘000)
Mobile broadband/Flash:
ARPU (Rp‘000)
Growth (%)
41%
14 %
55%
11%
Note: *) Broadband covered: Access Data Package (Flash), Pay as you use
(Rp.5/kB + Rp.1/kB) and Blackberry
8
Fixed Line Business
1H10
1H11
8,397
8,420
106
101
5%
15,896
18,736
18%
Fixed Wireline
Line in Service/LIS (‘000)
ARPU (‘000)
Fixed Wireless / Flexi
Subscribers (‘000)
BTS (unit)
5,552
5,705
MoU (Mn minutes)
6,153
4,528
ARPU – blended (Rp’000)
17
9
Fixed Line Revenues (Rp Bn)*
6,614 **
5,865
Growth (%)
0.3%
3%
26%
47%
11%
Note : *) Fixed Line revenues including monthly, usage and installation charges
**) As Restated. Please refer to our Consolidated Financial Statements Note 2p
9
Financial Highlights
(in Rp Tn )
Financial Position
FY10
1H11
Growth (%)
Total Assets
99.8
44.5
-
Total Liabilities
99.8
43.3
Total Equity (including noncontrolling interest)
56.4
55.3
2%
1H10
1H11
Growth (%)
33.7
22.4
18.8
55.7
34.5
23.5
18.1
52.4
4%
3%
Income for the period attributable
to owner of the parent
6.0
5.9
Income per Share (Rp)
307
302
Income Statement
Operating Revenues
Operating Expenses
EBITDA
EBITDA Margin (%)
3%
2%
5%
2%
2%
10
Income Statement (1/2)
Revenue contribution to total revenues
Total revenues
Rp34.4 Tn
14.2
13.5
42%
39%
11.5
1H10
9.7
34%
29%
1H11
(in Rp trillion)
6.6
5.9
20%
17%
1.8
5%
Cellular
Data, Internet & IT
Fixed Line
1.7
5%
Interconnection
0.6
2%
0.6
2%
Network
0.8
2%
1.2
3%
Other
11
Income Statement (2/2)
Expense contribution to total expenses
Total expenses
Rp23.5 Tn
8.3
7.9
35%
35%
7.4
33%
7.2
1H10
30%
1H11
(in Rp trillion)
O&M
Depr &
Amortization
3.5
3.9
15%
16%
Personnel
1.5
1.6
1.0
1.6
1.1
1.1
7%
7%
4%
7%
5%
5%
Interconnection
Marketing
G&A
12
Capital Expenditure (Capex)
(in Bn USD)
Other
Subsidiaries
Telkomsel
1.52
26%
0.27
Others
Coverage & Quality
71%
Telkomsel
0.73
Capacity
0.78
0.18
Allocation
Telkom
9%
0.41
Telkom
40%
0.52
Others
0.19
2011E
New Wave
1H11A
51%
Infrastructure
13
Recent Development
14
Human Resources - ERP
In September 2011, 762 Telkom’s employees participated in Early Retirement program
(ERP), the execution was done in early October 2011
34.0
32.5
30.2
28.8
26.8
27.7
in (‘000)
25.4
25.0
23.2
21.1
5.2
5.6
5.7
2008
2009
2010
Telkom as a parent
company
Subsidiaries
6.4
7.1
2006
2007
In five years, the parent company
workforces decreasing by 4,362
employees through early retirement
program.
15
Telkom Share Buy Back
Share Buy Back I-III
Carried out within 2005-2009
Numbers of shares bought: 490,574,500
Total amount of money spent Rp 4.263 Tn
Share Buy Back IV Program
Increasing Shareholders
Value
Telkom Financial
Performance
Optimize Cash
Excess
AGMS approved the
Company’s Share Buyback
Program IV amounting to
Rp5Tn,- over a maximum
period of 18 months.
Until September 29, 2011, Telkom has bought back 141.31Mn shares through the
Indonesia Stock Exchange (“IDX”) and New York Stock Exchange (“NYSE”)
amounting Rp1.03Tn or 21% of Rp5 trillion.
16
Telkom Backbone Infrastructure
Telkom continues to realize network infrastructure expansion of optical network
platform-based known as Nusantara Super Highway
Currently Telkom has around 21,000 km fiber optic backbone, consist of:
13,000 km terrestrial and 8,000 km submarine cable.
17
Towers
Through Mitratel, our wholly-owned subsidiary, we leverage our tower asset…
By end of 2011:
Own
2,500
Operate 3,500
TELKOM: 1,300 units
Telkomsel: 2,200 units
Towers
Towers owned by others
Tenancy Ratio
Target > 2x
18
Any further questions?
Contact Address :
Investor Relations
Grha Citra Caraka 5th floor
Jl. Jend. Gatot Subroto Kav. 52
Jakarta, 12710
Indonesia
Tel : +62-21-5215109
Fax : +62-21-5220500
Email : investor@telkom.co.id
Website: www.telkom.co.id