Telkoms9M09Result
Corporate Presentation
The Result of Third Quarter 2009
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 New Corporate Identity
Expertise – Circle represents
completeness of products/services
Empowering – Expanding hand indicates
growth and reaching out from the world
Assured – Hand symbolizes trust and
personal connection
Progressive – Hand and circle
combination suggests a sunrise reflecting
new beginnings and change
Heart – Hand is a universal human
symbol which can tell the story of one’s
life (e.g., life line) and implies human
touch which can demonstrate care
“Life in Touch”
New positioning: Life Confident
New tagline: the world in your hand
3
Content
Telkom Indonesia in Brief
Telco Industry in Indonesia
Business Results (Operational & Financial) – 9M09
Strategic Corporate Actions
4
Telkom Ownership ...
Telkom is the largest telecommunication company and
network provider in Indonesia, owned by the Government
of Indonesia and Public.
(Total shares = 20,159,999,280, including 1 Dwiwarna share series A)
as of September 30, 2009
TELKOM is listed at
Indonesia Stock Exchange (IDX), New
York Stock Exchange (NYSE), London
Stock Exchange (LSE) and also Publicly
Offering Without Listing (POWL) at
Tokyo Stock Exchange (TSE)
Government
52.47%
10,320,470,711 shares
Public
47.53%
9,348,954,069 shares
Treasury Stock
490,574,500 shares
The biggest public listed company in Indonesia
( Market cap : Rp174Tn, or 8,97% of total market cap. at IDX)
5
Telkom Core Business
As of September 30, 2009
Market leader with
more than 90% market
share for fixed wireline
and 59% for fixed
wireless
Operated by Division :
Reg. Div 1-7; Flexi Div; Infratel Div;
CISC Div; Enterprise Div, Access Div.;
and Subsidiaries :
No.1 cellular
operator with 52%
market share
Operated by:
New wave business
with significant
growth
Property, telco
infrastructure,
trade and finance
services, call center
and directory, and
printing
Operated by:
6
Telkom’s Map of Operations
Full National coverage : 33 provinces and 440 districts
7
Board of Directors
8
Content
Telkom Indonesia in Brief
Telco Industry in Indonesia
Business Results (Operational & Financial) – 9M09
Strategic Corporate Actions
9
Telco Industry :
Environment Overview
There are 11 operators for more than 231 Mn population with 56 % young dynamic population…
Population by Age
8%
27%
56%
9%
0-14
15-19
20-59
60+
Indonesia population
Population: approx. 231 million +
Young dynamic population
10
Telco Industry:
Mobile Market Share
Full Mobility Market Share
Total industry: ∼ 178 Mn subscribers
Total subscribers ∼ 149 Mn
Mobile-8 , 2%
A xis , 2%
Telkom Group, 49%
S mart , 2%
S ampoerna TI ,
1%
Hutc h , 5%
Telkom Group, 53%
XL , 18%
T elkoms el ,
52%
Indos at-G S M ,
19%
Limited Mobility Market Share
Total subscribers ∼ 29 Mn
Indosat, 22%
Indosat, 16%
XL, 16%
Hepi (Mobile-8)
, 2%
S tarOne , 2%
XL, 15%
E s ia , 36%
Esia, 5%
Esia, 5%
Hutch, 3%
Axis, 2%
Smart, 1%
Hutch, 4%
Axis, 2%
Smart, 1%
Sampoerna, 1%
Sampoerna, 0%
Jan
Flexi , 59%
Feb
Mar
Apr
May
Source: Internal market research
Jun
Jul
Aug
Sep
11
Telco Penetration
Amid intensifying competition, Telkom remains market
leader in all product lines
Fixed
Wireline
Total
Industry
Fixed
Wireless
± 8.7 mn
± 29 mn
Penetration
± 16%
Cellular
as of September 30, 2009
Broadband
± 149 mn
± 2.5 mn
Penetration
Penetration
± 2%
±64%
Fixed Line
12
Source: Internal market research
Content
Telkom Indonesia in Brief
Telco Industry in Indonesia
Business Results (Operational & Financial) – 9M09
Strategic Corporate Actions
13
Operational Highlights
..in almost all business segments, TELKOM has had impressive customer base
growth and Telkom consistently maintains a dominant market share both in
cellular and fixed line.
9M08
9M09
Fixed Line
17.7
23.6
33%
Cellular
60.5
79.8
32%
Speedy (subscriber)
593
979
65%
Flash (user)
123
1,375
1,013%
Growth (%)
Customer Base (LIS)
Telephone (mn):
Broadband Services (‘000):
14
Fixed Line Business
9M08
9M09 Growth (%)
Fixed Wireline
Line in Service/LIS (mn)
8.6
8.7
1.4%
Revenue – voice (Rp Tn)
6.4
5.5
14%
9.2
14.9
63%
3,181
5,296
66%
MoU (Bn minutes)
9.6
12.4
30%
Revenue – voice (Rp Tn)
1.1
0.9
18%
Fixed Wireless / Flexi
Subscribers (mn)
BTS (unit)
Revenue (Rp Tn)
In the next 3-4 years, it is
expected that the decline will
be compensated by the
increase revenue of fixed
broadband and other new
wave business.
During 9M09, broadband
services have grown
significantly.
Fixed broadband (Speedy)
Subscribers (‘000)
The decline of fixed wireline
revenue was inline with the
trend in Telco industry.
593
979
65%
0.59
1.85
92%
15
Cellular Business
9M08
9M09 Growth (%)
Cellular
60,5
79.8
32%
25,089
29,781
19%
MoU (Bn minutes)
58.8
100.8
71%
Revenue – voice (Rp Tn)
18.3
21.0
15%
123
1,375
1,013%
69
339
391%
Subscribers (mn)
BTS (unit)
Telkomsel continued to
maintain a dominant
leading position of cellular
market with a total
subscribers 79.8 mn,
reflecting 52% market
share.
Mobile broadband (Flash)
User (‘000)
Revenue (Rp Bn)
16
Financial Highlights
In tight competition, total revenues has delivered positive during 9M09…
(in Tn Rp. )
9M08
9M09
Growth (%)
Total Assets
86.0
95.2
10.7%
Total Liabilities
44.6
47.9
7.5%
8.8
9.8
10.6%
32.6
37.5
15.1%
Operating Revenues
44.7
47.1
5.5%
Operating Expenses
27.5
29.2
6.1%
EBITDA
26.0
28.1
8.3%
EBITDA Margin (%)
58.2
59.7
1.5%
8.9
9.3
4.3%
451.1
472.8
4.8%
Balance Sheet:
Minority Interest
Total Equity
Profit & Loss Statement:
Net Income
Net Income/Share (Rp.)
17
Legacy and New Wave Revenues
Total (Rp. Bn)
44,650
2,791
47,114
The increased revenue of both legacy and new wave businesses was a
strong signals that Telkom is on the right track
4,188
New Wave Business
50.1%
(Rp.1,397 bn)
Legacy Business
41,859
42,926
2.6%
(Rp. 1.068 bn)
9M08
Our New Wave business has grown
significantly (50.1%)….
…and the contribution to total revenues
reached 8.9% (2009) from 6.3% (2008)
9M09
18
Revenue Contribution
Total Revenue 9M09 increased by 5.5% to Rp47.1 Tn
9M08
9M09
19
Capital Expenditure
......continuing to increase capacity, coverage and quality of service as well as
providing investment to develop new wave businesses…
TELKOM CAPEX 9M09 (Rp 4,399 Bn)
Total (Rp Bn)
14,370
12,826
Long-term investment
Other
Subsidiaries
74%
63%
TELKOMSEL
36%
TELKOM
Support
670
136
175
1,954
2,166
1,420
1,388
9M08
9M09
New Wave
& infrastructure
63%
25%
9M08
34%
Legacy
9M09
20
Consolidated Debt
To minimize effect on forex fluctuation, company has reduced
foreign debt in US$...
Total (Rp. Bn)
17,964
23,529
12%
Japanese Yen
U.S Dollar
82%
IDR/Rupiah
6%
Forex Debt in US$
has decreased
by 10% in 9M09
6%
22%
72%
Decrease in forex debt will
minimize forex loss
9M08
9M09
21
Content
Telkom Indonesia in Brief
Telco Industry in Indonesia
Business Results (Operational & Financial) – 9M09
Strategic Corporate Actions
22
Key Strategic
Corporate Developments
Dayamitra Telekomunikasi is
in the process of acquiring a
majority ownership to 80% of
Dayamitra is now operating 1,400 towers across Indonesia
indonesiatower is the pioneer in the tower industry in
Indonesia
indonesiatower
indonesiatower is one of the leading independent tower
companies with more than 800 tower across Indonesia
23
Thanks
for your attention
Any further questions?
Contact Address :
Investor Relations & Corporate Secretary Department
Grha Citra Caraka 5th fl
Jl. Jend. Gatot Subroto Kav. 52
Jakarta, 12710
Indonesia
Tel : +62-21-5215109
Fax : +62-21-5220500
Email : [email protected]
Website: www.telkom.co.id
The Result of Third Quarter 2009
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 New Corporate Identity
Expertise – Circle represents
completeness of products/services
Empowering – Expanding hand indicates
growth and reaching out from the world
Assured – Hand symbolizes trust and
personal connection
Progressive – Hand and circle
combination suggests a sunrise reflecting
new beginnings and change
Heart – Hand is a universal human
symbol which can tell the story of one’s
life (e.g., life line) and implies human
touch which can demonstrate care
“Life in Touch”
New positioning: Life Confident
New tagline: the world in your hand
3
Content
Telkom Indonesia in Brief
Telco Industry in Indonesia
Business Results (Operational & Financial) – 9M09
Strategic Corporate Actions
4
Telkom Ownership ...
Telkom is the largest telecommunication company and
network provider in Indonesia, owned by the Government
of Indonesia and Public.
(Total shares = 20,159,999,280, including 1 Dwiwarna share series A)
as of September 30, 2009
TELKOM is listed at
Indonesia Stock Exchange (IDX), New
York Stock Exchange (NYSE), London
Stock Exchange (LSE) and also Publicly
Offering Without Listing (POWL) at
Tokyo Stock Exchange (TSE)
Government
52.47%
10,320,470,711 shares
Public
47.53%
9,348,954,069 shares
Treasury Stock
490,574,500 shares
The biggest public listed company in Indonesia
( Market cap : Rp174Tn, or 8,97% of total market cap. at IDX)
5
Telkom Core Business
As of September 30, 2009
Market leader with
more than 90% market
share for fixed wireline
and 59% for fixed
wireless
Operated by Division :
Reg. Div 1-7; Flexi Div; Infratel Div;
CISC Div; Enterprise Div, Access Div.;
and Subsidiaries :
No.1 cellular
operator with 52%
market share
Operated by:
New wave business
with significant
growth
Property, telco
infrastructure,
trade and finance
services, call center
and directory, and
printing
Operated by:
6
Telkom’s Map of Operations
Full National coverage : 33 provinces and 440 districts
7
Board of Directors
8
Content
Telkom Indonesia in Brief
Telco Industry in Indonesia
Business Results (Operational & Financial) – 9M09
Strategic Corporate Actions
9
Telco Industry :
Environment Overview
There are 11 operators for more than 231 Mn population with 56 % young dynamic population…
Population by Age
8%
27%
56%
9%
0-14
15-19
20-59
60+
Indonesia population
Population: approx. 231 million +
Young dynamic population
10
Telco Industry:
Mobile Market Share
Full Mobility Market Share
Total industry: ∼ 178 Mn subscribers
Total subscribers ∼ 149 Mn
Mobile-8 , 2%
A xis , 2%
Telkom Group, 49%
S mart , 2%
S ampoerna TI ,
1%
Hutc h , 5%
Telkom Group, 53%
XL , 18%
T elkoms el ,
52%
Indos at-G S M ,
19%
Limited Mobility Market Share
Total subscribers ∼ 29 Mn
Indosat, 22%
Indosat, 16%
XL, 16%
Hepi (Mobile-8)
, 2%
S tarOne , 2%
XL, 15%
E s ia , 36%
Esia, 5%
Esia, 5%
Hutch, 3%
Axis, 2%
Smart, 1%
Hutch, 4%
Axis, 2%
Smart, 1%
Sampoerna, 1%
Sampoerna, 0%
Jan
Flexi , 59%
Feb
Mar
Apr
May
Source: Internal market research
Jun
Jul
Aug
Sep
11
Telco Penetration
Amid intensifying competition, Telkom remains market
leader in all product lines
Fixed
Wireline
Total
Industry
Fixed
Wireless
± 8.7 mn
± 29 mn
Penetration
± 16%
Cellular
as of September 30, 2009
Broadband
± 149 mn
± 2.5 mn
Penetration
Penetration
± 2%
±64%
Fixed Line
12
Source: Internal market research
Content
Telkom Indonesia in Brief
Telco Industry in Indonesia
Business Results (Operational & Financial) – 9M09
Strategic Corporate Actions
13
Operational Highlights
..in almost all business segments, TELKOM has had impressive customer base
growth and Telkom consistently maintains a dominant market share both in
cellular and fixed line.
9M08
9M09
Fixed Line
17.7
23.6
33%
Cellular
60.5
79.8
32%
Speedy (subscriber)
593
979
65%
Flash (user)
123
1,375
1,013%
Growth (%)
Customer Base (LIS)
Telephone (mn):
Broadband Services (‘000):
14
Fixed Line Business
9M08
9M09 Growth (%)
Fixed Wireline
Line in Service/LIS (mn)
8.6
8.7
1.4%
Revenue – voice (Rp Tn)
6.4
5.5
14%
9.2
14.9
63%
3,181
5,296
66%
MoU (Bn minutes)
9.6
12.4
30%
Revenue – voice (Rp Tn)
1.1
0.9
18%
Fixed Wireless / Flexi
Subscribers (mn)
BTS (unit)
Revenue (Rp Tn)
In the next 3-4 years, it is
expected that the decline will
be compensated by the
increase revenue of fixed
broadband and other new
wave business.
During 9M09, broadband
services have grown
significantly.
Fixed broadband (Speedy)
Subscribers (‘000)
The decline of fixed wireline
revenue was inline with the
trend in Telco industry.
593
979
65%
0.59
1.85
92%
15
Cellular Business
9M08
9M09 Growth (%)
Cellular
60,5
79.8
32%
25,089
29,781
19%
MoU (Bn minutes)
58.8
100.8
71%
Revenue – voice (Rp Tn)
18.3
21.0
15%
123
1,375
1,013%
69
339
391%
Subscribers (mn)
BTS (unit)
Telkomsel continued to
maintain a dominant
leading position of cellular
market with a total
subscribers 79.8 mn,
reflecting 52% market
share.
Mobile broadband (Flash)
User (‘000)
Revenue (Rp Bn)
16
Financial Highlights
In tight competition, total revenues has delivered positive during 9M09…
(in Tn Rp. )
9M08
9M09
Growth (%)
Total Assets
86.0
95.2
10.7%
Total Liabilities
44.6
47.9
7.5%
8.8
9.8
10.6%
32.6
37.5
15.1%
Operating Revenues
44.7
47.1
5.5%
Operating Expenses
27.5
29.2
6.1%
EBITDA
26.0
28.1
8.3%
EBITDA Margin (%)
58.2
59.7
1.5%
8.9
9.3
4.3%
451.1
472.8
4.8%
Balance Sheet:
Minority Interest
Total Equity
Profit & Loss Statement:
Net Income
Net Income/Share (Rp.)
17
Legacy and New Wave Revenues
Total (Rp. Bn)
44,650
2,791
47,114
The increased revenue of both legacy and new wave businesses was a
strong signals that Telkom is on the right track
4,188
New Wave Business
50.1%
(Rp.1,397 bn)
Legacy Business
41,859
42,926
2.6%
(Rp. 1.068 bn)
9M08
Our New Wave business has grown
significantly (50.1%)….
…and the contribution to total revenues
reached 8.9% (2009) from 6.3% (2008)
9M09
18
Revenue Contribution
Total Revenue 9M09 increased by 5.5% to Rp47.1 Tn
9M08
9M09
19
Capital Expenditure
......continuing to increase capacity, coverage and quality of service as well as
providing investment to develop new wave businesses…
TELKOM CAPEX 9M09 (Rp 4,399 Bn)
Total (Rp Bn)
14,370
12,826
Long-term investment
Other
Subsidiaries
74%
63%
TELKOMSEL
36%
TELKOM
Support
670
136
175
1,954
2,166
1,420
1,388
9M08
9M09
New Wave
& infrastructure
63%
25%
9M08
34%
Legacy
9M09
20
Consolidated Debt
To minimize effect on forex fluctuation, company has reduced
foreign debt in US$...
Total (Rp. Bn)
17,964
23,529
12%
Japanese Yen
U.S Dollar
82%
IDR/Rupiah
6%
Forex Debt in US$
has decreased
by 10% in 9M09
6%
22%
72%
Decrease in forex debt will
minimize forex loss
9M08
9M09
21
Content
Telkom Indonesia in Brief
Telco Industry in Indonesia
Business Results (Operational & Financial) – 9M09
Strategic Corporate Actions
22
Key Strategic
Corporate Developments
Dayamitra Telekomunikasi is
in the process of acquiring a
majority ownership to 80% of
Dayamitra is now operating 1,400 towers across Indonesia
indonesiatower is the pioneer in the tower industry in
Indonesia
indonesiatower
indonesiatower is one of the leading independent tower
companies with more than 800 tower across Indonesia
23
Thanks
for your attention
Any further questions?
Contact Address :
Investor Relations & Corporate Secretary Department
Grha Citra Caraka 5th fl
Jl. Jend. Gatot Subroto Kav. 52
Jakarta, 12710
Indonesia
Tel : +62-21-5215109
Fax : +62-21-5220500
Email : [email protected]
Website: www.telkom.co.id