TLKM FY16 Earnings Call Final
Corporate Presentation
FY16 Results
PT Telkom Indonesia (Persero) Tbk
7 March 2017
1
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.
2
TELKOM in Brief
FY16 Financial & Operational Results
Company Guidance 2016
3
Share Ownership
Government
52.1%
Public
47.9%
Total Shares
100,799,996,400 shares
Treasury Stock
1.7 Bn shares
Telkom Indonesia is listed at
Indonesia Stock Exchange (Bloomberg: TLKM IJ)
and New York Stock Exchange (TLK US)
Market Capitalization
Rp401.2 Tn (USD29.4 Bn)*
*as of Dec31, 2016
4
Board of Directors
Telkom
CEO TELKOM GROUP
Director
Director
Director
ALEX J. SINAGA
INDRA UTOYO
HARRY M. ZEN
HERDI R. HARMAN
Director
Director
Director
ABDUS SOMAD ARIEF
DIAN RACHMAWAN
HONESTI BASYIR
Telkomsel
CEO Telkomsel
Director
Director
RIRIEK ADRIANSYAH
HERI SUPRIADI
EDWARD YING SIEW HENG
Director
MAS’UD KHAMID
Director
ALISTAIR D JOHNSTON
Director
Director
SUKARDI SILALAHI
Director
PRIYANTONO RUDITO
MONTGOMERY HONG
5
TELKOM Introduction
FY16 Financial & Operational Results
Company Guidance 2016
6
FY16 Performance Highlights
Telkom Indonesia delivered remarkable remark in FY16, posting triple doubledigit growth in Revenue, EBITDA, and Net Income of 13.5%, 15.7%,and
24.9% YoY respectively.
Data, Internet & IT Services sharply increased by more than 31% YoY. This
segment contributed 37.0% to total revenue.
Telkomsel recorded another triple double-digit with Revenue grew by 14.0%,
EBITDA 16.9%, and Net Income 26.1% respectively.
Telkomsel installed 25,744 new BTS, of which around 92% are 3G/4G BTS to
enhance mobile broadband experience.
7
Strong EBITDA & Net Income Growth
with Healthy Margins
59.5
EBITDA YoY
51.4
(Rp Trillion)
19.4
15.7%
15.5
24.9%
Net Income YoY
(Rp Trillion)
Margin
50.2%
FY15
51.1%
FY16
Margin
15.1%
16.6%
FY15
FY16
8
Strong Revenue Growth, Driven by
Data Business
116.3
Revenue YoY (Rp Trillion)
52.4
102.5
54.5
13.5%
43.0
37.0%
32.7
contribution to total
revenue (increased from
31.9% in FY15)
7.8
7.5
4.3
Cellular Voice
and SMS
Data, Internet
& IT Services
Fixed Line
Voice
3.9%
31.5%
3.7%
Note: SMS included SMS Banking and SMS advertising
4.2
Interconnection
3.2%
5.2
7.2
Network &
Other Telco
Services
36.8%
FY15
FY16
FY15
FY16
Moderate Growth in Expenses
77.1
70.1
Expenses YoY (Rp Trillion)
31.3
28.1
10.1%
18.5 18.5
13.6
11.9
3.6 3.2
O&M
11.2%
3.3
4.1
Personnel
Interconnection
Marketing
14.6%
10.3%
26.2%
4.2 4.6
G&A
D&A
9.7%
0.0%
FY15
FY16
FY15
FY16
TSEL: PERFORMANCE HIGHLIGHTS
Maintained Strong Performance Momentum during 2016
YEAR-ON-YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
+14%
In Trillion
Digital
Business
22.4
49.8
42.6
37% 30.7
CAPEX
In Trillion PAID
In Trillion
86.7
76.1
NET INCOME
28.2
22.4
17%
13.5
13.1
4%
26%
4%
Legacy
53.7
56.1
FY16
FY15
TOTAL ASSET
In Trillion
FY15
FY16
Margin
56%
57%
CUSTOMER
In Million
FY15
89.8
29%
+44%
14.3
2.0
FY16
FY15
FY16
BTS ON AIR
BTS ROLL OUT
In Thousand
In Thousand
17.9
1.6
7%
FY15
33%
152.6
14%
FY16
Margin
173.9
84.1
FY15
FY16
FY15
+25%
25.7
4.6 4G
192%
34% 19.2
2%
2.0
FY16
3G
103.3 261%
1.8
53.1
36%
48.4
4%
129.0
6.4 4G
72.3
50.3
3G
2G
2G
FY15
FY16
11
TSEL: PERFORMANCE HIGHLIGHTS
Continue to Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+37%
Broadband:
Broadband
Digital
Services
In TB
958,733
30.7
22.4
84.7
73.9
37%
DATA TRAFFIC
DATA USER
In Million
27.7
492,245
15%
95%
20.3
39%
2.1
FY15
FY15
FY16
In Million
3G & 4G BTS
ROLL OUT
In Thousand
82.6
61.7
4G
34%
3G
FY16
FY15
FY16
FY16
- Digital Lifestyle
- Digital Advertising
- Mobile Financial Services
- Enterprise Digital Services
3G & 4G BTS
ON AIR
In Thousand
23.8
15.9 192% 4.6
1.6
19.2
14.3 34%
FY15
BlackBerry
Digital Services:
3.0
3G/4G CAPABLE
DEVICE
FY15
Telkomsel
Flash
FY16
78.7
261% 6.4
4G
54.9
1.8
3G
53.1 36%
FY15
72.3
FY16
12
Excellent Operational Results
Telkomsel Operational
TELKOM Operational
3G/4G-capable device users: 82.6 mn
(+33.9% YoY). 19 mn has enjoyed 4G.
IndiHome subs reached 1.62 Mn
increased 52.1% YoY
Mobile data payload jumped 94.8% YoY
to 958.7 TB.
Added 25,700 new BTS (around 90%
3G/4G). Total BTS 129K (61% 3G/4G).
More content including video
streaming platform and attractive
features such as Movin’.
ARPU in 4Q Rp341K (vs Rp313K in 3Q)
Fixed broadband users (incl. nonIndiHome) increased 8.7% YoY to
4.3 Mn
4G LTE Service: 169 cities across
Indonesia, 6,362 BTS
Total customers: 173.9 mn, increased
13.9% YoY.
13
Strong Enterprise & Wholesale Business
Enterprise Business
Services
Supporting Smart
City Initiatives
Delivers fixed line services to
corporate, SMEs, and
government
Implementation of IT-based
public services system
1,339
944
Corporate
Customers
Government
institution
299,900
Wholesale
Business
To serve other
licensed operators in
Indonesia
219 cities
Smart City System by TELKOM
including Surabaya, Bandung
& Bogor
Recent Development
SME Customers
Telkom-3S Satellite Launch
65%
2,524 Gbps
National market
share (Traffic)
total bandwidth in service
(integrated IT Solutions)
Telkom launched Telkom-3S
satellite on 15 February 2017 in
Kourou, French Guiana. Telkom-3S
carries 42 transponders consists of
24 C-Band, 8 extended C-Band, 10
Ku-Band.
Next year Telkom is going to
launch another satellite with
bigger capacity, in an effort to
reduce dependency on foreign
satellite operators.
14
Superior Network
+213K
20,000 sqm
wifi access point
added
world class data center in Jurong
completed
Maps of Indonesia Backbone Network
SEA-ME-WE-5
20,000 km from Dumai,
Indonesia - Marseille, France
SEA-US
14,400 km from Manado,
Indonesia - California, USA
Expected completion Q3 2017
IGG
Indonesia Global Gateway
Connect SEA-ME-WE 5, SEAUS and our domestic network
Completed Sulawesi-Maluku-Papua Cable System
(SMPCS) in Q4
Completed SEA-ME-WE-5
Still constructing SEA-US submarine cable system,
scheduled to commence in 3Q17
Indonesia Global Gateway integrate two submarines
cable systems with domestic network, to complete in
1Q18
>4,000 km
SMPCS cable system
completed
15
TELKOM in Introduction
FY16 Operational & Financial Results
Company Guidance 2016
16
2017 Guidance
Revenue
Growth
EBITDA &
Net Income Margins
To grow better than
industry.
Telco industry is
expected to grow at 8%
to 9% in 2017.
To slightly decline as Telkom
is shifting towards digital
telco company with higher
proportion of revenue from
digital business.
CAPEX
Around 23%-25% of
revenue with focus on
mobile and broadband
infrastructure
MAIN PROGRAM
Telkomsel
Indonesia
Digital Network
International
Expansion
Leading Mobile
Digital Business
Drive Digital Home
& Enterprise
Smart International
Business Growth
Thank You
Thank You
PT Telkom Indonesia (Persero) Tbk
March 2017
18
FY16 Results
PT Telkom Indonesia (Persero) Tbk
7 March 2017
1
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.
2
TELKOM in Brief
FY16 Financial & Operational Results
Company Guidance 2016
3
Share Ownership
Government
52.1%
Public
47.9%
Total Shares
100,799,996,400 shares
Treasury Stock
1.7 Bn shares
Telkom Indonesia is listed at
Indonesia Stock Exchange (Bloomberg: TLKM IJ)
and New York Stock Exchange (TLK US)
Market Capitalization
Rp401.2 Tn (USD29.4 Bn)*
*as of Dec31, 2016
4
Board of Directors
Telkom
CEO TELKOM GROUP
Director
Director
Director
ALEX J. SINAGA
INDRA UTOYO
HARRY M. ZEN
HERDI R. HARMAN
Director
Director
Director
ABDUS SOMAD ARIEF
DIAN RACHMAWAN
HONESTI BASYIR
Telkomsel
CEO Telkomsel
Director
Director
RIRIEK ADRIANSYAH
HERI SUPRIADI
EDWARD YING SIEW HENG
Director
MAS’UD KHAMID
Director
ALISTAIR D JOHNSTON
Director
Director
SUKARDI SILALAHI
Director
PRIYANTONO RUDITO
MONTGOMERY HONG
5
TELKOM Introduction
FY16 Financial & Operational Results
Company Guidance 2016
6
FY16 Performance Highlights
Telkom Indonesia delivered remarkable remark in FY16, posting triple doubledigit growth in Revenue, EBITDA, and Net Income of 13.5%, 15.7%,and
24.9% YoY respectively.
Data, Internet & IT Services sharply increased by more than 31% YoY. This
segment contributed 37.0% to total revenue.
Telkomsel recorded another triple double-digit with Revenue grew by 14.0%,
EBITDA 16.9%, and Net Income 26.1% respectively.
Telkomsel installed 25,744 new BTS, of which around 92% are 3G/4G BTS to
enhance mobile broadband experience.
7
Strong EBITDA & Net Income Growth
with Healthy Margins
59.5
EBITDA YoY
51.4
(Rp Trillion)
19.4
15.7%
15.5
24.9%
Net Income YoY
(Rp Trillion)
Margin
50.2%
FY15
51.1%
FY16
Margin
15.1%
16.6%
FY15
FY16
8
Strong Revenue Growth, Driven by
Data Business
116.3
Revenue YoY (Rp Trillion)
52.4
102.5
54.5
13.5%
43.0
37.0%
32.7
contribution to total
revenue (increased from
31.9% in FY15)
7.8
7.5
4.3
Cellular Voice
and SMS
Data, Internet
& IT Services
Fixed Line
Voice
3.9%
31.5%
3.7%
Note: SMS included SMS Banking and SMS advertising
4.2
Interconnection
3.2%
5.2
7.2
Network &
Other Telco
Services
36.8%
FY15
FY16
FY15
FY16
Moderate Growth in Expenses
77.1
70.1
Expenses YoY (Rp Trillion)
31.3
28.1
10.1%
18.5 18.5
13.6
11.9
3.6 3.2
O&M
11.2%
3.3
4.1
Personnel
Interconnection
Marketing
14.6%
10.3%
26.2%
4.2 4.6
G&A
D&A
9.7%
0.0%
FY15
FY16
FY15
FY16
TSEL: PERFORMANCE HIGHLIGHTS
Maintained Strong Performance Momentum during 2016
YEAR-ON-YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
+14%
In Trillion
Digital
Business
22.4
49.8
42.6
37% 30.7
CAPEX
In Trillion PAID
In Trillion
86.7
76.1
NET INCOME
28.2
22.4
17%
13.5
13.1
4%
26%
4%
Legacy
53.7
56.1
FY16
FY15
TOTAL ASSET
In Trillion
FY15
FY16
Margin
56%
57%
CUSTOMER
In Million
FY15
89.8
29%
+44%
14.3
2.0
FY16
FY15
FY16
BTS ON AIR
BTS ROLL OUT
In Thousand
In Thousand
17.9
1.6
7%
FY15
33%
152.6
14%
FY16
Margin
173.9
84.1
FY15
FY16
FY15
+25%
25.7
4.6 4G
192%
34% 19.2
2%
2.0
FY16
3G
103.3 261%
1.8
53.1
36%
48.4
4%
129.0
6.4 4G
72.3
50.3
3G
2G
2G
FY15
FY16
11
TSEL: PERFORMANCE HIGHLIGHTS
Continue to Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+37%
Broadband:
Broadband
Digital
Services
In TB
958,733
30.7
22.4
84.7
73.9
37%
DATA TRAFFIC
DATA USER
In Million
27.7
492,245
15%
95%
20.3
39%
2.1
FY15
FY15
FY16
In Million
3G & 4G BTS
ROLL OUT
In Thousand
82.6
61.7
4G
34%
3G
FY16
FY15
FY16
FY16
- Digital Lifestyle
- Digital Advertising
- Mobile Financial Services
- Enterprise Digital Services
3G & 4G BTS
ON AIR
In Thousand
23.8
15.9 192% 4.6
1.6
19.2
14.3 34%
FY15
BlackBerry
Digital Services:
3.0
3G/4G CAPABLE
DEVICE
FY15
Telkomsel
Flash
FY16
78.7
261% 6.4
4G
54.9
1.8
3G
53.1 36%
FY15
72.3
FY16
12
Excellent Operational Results
Telkomsel Operational
TELKOM Operational
3G/4G-capable device users: 82.6 mn
(+33.9% YoY). 19 mn has enjoyed 4G.
IndiHome subs reached 1.62 Mn
increased 52.1% YoY
Mobile data payload jumped 94.8% YoY
to 958.7 TB.
Added 25,700 new BTS (around 90%
3G/4G). Total BTS 129K (61% 3G/4G).
More content including video
streaming platform and attractive
features such as Movin’.
ARPU in 4Q Rp341K (vs Rp313K in 3Q)
Fixed broadband users (incl. nonIndiHome) increased 8.7% YoY to
4.3 Mn
4G LTE Service: 169 cities across
Indonesia, 6,362 BTS
Total customers: 173.9 mn, increased
13.9% YoY.
13
Strong Enterprise & Wholesale Business
Enterprise Business
Services
Supporting Smart
City Initiatives
Delivers fixed line services to
corporate, SMEs, and
government
Implementation of IT-based
public services system
1,339
944
Corporate
Customers
Government
institution
299,900
Wholesale
Business
To serve other
licensed operators in
Indonesia
219 cities
Smart City System by TELKOM
including Surabaya, Bandung
& Bogor
Recent Development
SME Customers
Telkom-3S Satellite Launch
65%
2,524 Gbps
National market
share (Traffic)
total bandwidth in service
(integrated IT Solutions)
Telkom launched Telkom-3S
satellite on 15 February 2017 in
Kourou, French Guiana. Telkom-3S
carries 42 transponders consists of
24 C-Band, 8 extended C-Band, 10
Ku-Band.
Next year Telkom is going to
launch another satellite with
bigger capacity, in an effort to
reduce dependency on foreign
satellite operators.
14
Superior Network
+213K
20,000 sqm
wifi access point
added
world class data center in Jurong
completed
Maps of Indonesia Backbone Network
SEA-ME-WE-5
20,000 km from Dumai,
Indonesia - Marseille, France
SEA-US
14,400 km from Manado,
Indonesia - California, USA
Expected completion Q3 2017
IGG
Indonesia Global Gateway
Connect SEA-ME-WE 5, SEAUS and our domestic network
Completed Sulawesi-Maluku-Papua Cable System
(SMPCS) in Q4
Completed SEA-ME-WE-5
Still constructing SEA-US submarine cable system,
scheduled to commence in 3Q17
Indonesia Global Gateway integrate two submarines
cable systems with domestic network, to complete in
1Q18
>4,000 km
SMPCS cable system
completed
15
TELKOM in Introduction
FY16 Operational & Financial Results
Company Guidance 2016
16
2017 Guidance
Revenue
Growth
EBITDA &
Net Income Margins
To grow better than
industry.
Telco industry is
expected to grow at 8%
to 9% in 2017.
To slightly decline as Telkom
is shifting towards digital
telco company with higher
proportion of revenue from
digital business.
CAPEX
Around 23%-25% of
revenue with focus on
mobile and broadband
infrastructure
MAIN PROGRAM
Telkomsel
Indonesia
Digital Network
International
Expansion
Leading Mobile
Digital Business
Drive Digital Home
& Enterprise
Smart International
Business Growth
Thank You
Thank You
PT Telkom Indonesia (Persero) Tbk
March 2017
18