Indosat 1H16 updated
PT. Indosat Tbk.
First Half 2016 Results
PT Indosat Tbk – 1H 2016 Results
2
Indosat Ooredoo Juara
Revenue growth
4.6% growth QoQ
Cellular Revenue growth
4.2% growth for QoQ
Data Revenue growth
20.1% growth QoQ
55.5% growth YoY
Voice & SMS Revenue growth
5.7% growth YoY
Data Traffic growth
46.3% growth QoQ
83.5% growth YoY
PT Indosat Tbk – 1H 2016 Results
3
Moving into LTE
Pontianak
Balikpapan
Samarinda
Banjarmasin
Padang
Bukittinggi
Batam
Karawang
Bandung
Tasikmalaya
Sukabumi
Cianjur
Lampung
Metro
Jakarta
Bogor
Depok
Bekasi
Tangerang
Makassar
Yogyakarta
Semarang
Solo
Purwokerto
Salatiga
Demak
Rembang
Kudus
Magelang
CIlacap
Surabaya
Malang
Mojokerto
Tuban
Gresik
Bojonegoro
Sidoarjo
Kediri
Denpasar
Badung (Kuta
/ Nusa Dua)
40 Cities, 43 million population coverage
PT Indosat Tbk – 1H 2016 Results
4
Indosat Ooredoo Business
Services
3 Stream of Services
Fixed
Connectivity
Leased Circuit
Fixed Internet
IP Transit
Data Center
Cloud Infrastructure
as-a-Service
Ethernet Link
IPVPN
IT Services
Dedicated Internet
Access
Disaster Recovery
Center 3
Business is coming from Large Enterprise customer with focus on fixed connectivity & internet
and IT Services.
In the last 2 years, we develop B2B mobile business which related to mobile data connectivity
and application.
PT Indosat Tbk – 1H 2016 Results
6
Our business transformation journey is moving
towards being “Indonesia’s Leading Digital Telco”
PT Indosat Tbk – 1H 2016 Results
7
Financial and
Operational Highlights
1H16 YoY Overview
Consolidated Revenue increased 10.5%
from IDR 12,620 billion to IDR 13,942 billion
EBITDA increased 12.6% from IDR 5,362
billion to IDR 6,040 billion, EBITDA Margin
reached 43.3%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 734 billion to a
profit of IDR 428 billion
Free Cash Flow decreased from IDR 1,792
billion to IDR 1,340 billion
PT Indosat Tbk – 1H 2016 Results
9
2Q16 QoQ Overview
Consolidated Revenue increased 4.6%
from IDR 6,813 billion to IDR 7,129 billion
EBITDA increased 4.0% from IDR 2,961
billion to IDR 3,080 billion, EBITDA Margin
reached 43.2%
Profit Attributable to Owners of The Parent
slightly decreased from IDR 217 billion to
IDR 211 billion
Free Cash Flow increased from IDR 463
billion to IDR 877 billion
PT Indosat Tbk – 1H 2016 Results
10
Financial Highlights
in IDR billion
Operating Revenue
EBITDA
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
•
•
QoQ
1H-15
1H-16
YoY
1Q-16
2Q-16
12,620
13,942
10.5%
6,813
7,129
4.6%
5,362
6,040
12.6%
2,961
3,080
4.0%
42.5%
43.3%
0.8ppt
43.5%
43.2%
-0.3ppt
428 158.3%
217
211
-2.9%
-734
Double digit Revenue and EBITDA growth YoY in 2 consecutive quarters supported
by growth in all services (voice, SMS, data dan VAS).
Positive bottom line maintained in line with stabilized currency and reduction of USD
debt portion.
PT Indosat Tbk – 1H 2016 Results
11
Segment Revenue Overview
in IDR billion
Operating Revenue Breakdown
+9.2% YoY
6,962
271
272
286
936
921
997
5,321
5,768
2Q-15
3Q-15
Fixed Voice
•
•
7,187
6,527
Fixed Data
+4.6% QoQ
6,813
7,129
QoQ / YoY
226
-1.0% / -16.5%
909
989
+8.9% / +5.7%
5,904
5,676
5,914
4Q-15
1Q-16
2Q-16
228
+4.2% / +11.2%
Cellular
Strong data cellular revenue continue to grow and surpass traditional cellular services.
IDR appreciation drove IDD revenue down and eventually brought down Fixed voice
revenue QoQ and YoY.
PT Indosat Tbk – 1H 2016 Results
12
Cellular Revenue Performance
Voice
1H16
YoY
2Q16
QoQ
5.2%
0.9%
SMS
6.4%
-3.6%
Data
55.5%
20.1%
VAS
23.1%
30.8%
PT Indosat Tbk – 1H 2016 Results
- Healthy growth in all services YoY
- Data took the lead in driving the cellular
revenue growth
Digital business initiatives had pushed VAS
revenue growth
13
Cellular Customer Base
Number of cellular customers
in million
Net cellular customers additions
in million
+17.3% YoY
+15.3% QoQ
80.5
68.5
69.0
10.7
69.8
69.7
2.0
0.5
2Q-15
•
3Q-15
4Q-15
1Q-16
2Q-16
2Q-15
3Q-15
0.8
0.1
4Q-15
1Q-16
2Q-16
A combination of data campaign and specific marketing program for ex-Java market
had taken the momentum in Ramadhan month
PT Indosat Tbk – 1H 2016 Results
14
Improving ARPU
ARPU and ARPM
in thousand IDR
(ARPU)
143
145
Voice Traffic and MOU
in IDR
(ARPM)
137
135
in billion minutes
(Voice Traffic)
126
76
70
67
+0.9% YoY
in minute/subscriber
(MOU)
69
-3.4% QoQ
+15.8% YoY
25.3
26.9
27.9
26.4
25.5
13.5
14.6
15.6
2Q-15
3Q-15
4Q-15
1Q-16
2Q-16
2Q-15
3Q-15
4Q-15
ARPU
•
•
71
ARPM
Voice Traffic
+7.7% QoQ
14.5
1Q-16
15.6
2Q-16
MOU
ARPU growth maintained YoY in line with data users growth.
Voice traffic was growing due to our expansion in outside of Java area continues.
PT Indosat Tbk – 1H 2016 Results
15
Strong Data Usage
Data Usage
SMS Delivered
in TByte
in billion
+103.4% YoY
93,641
55,871
57,276
3Q-15
4Q-15
-7.8% YoY
+46.3% QoQ
60
62
+5.6% QoQ
59
52
63,987
55
46,027
2Q-15
•
•
1Q-16
2Q-16
2Q-15
3Q-15
4Q-15
1Q-16
2Q-16
4G traffic started to drive data usage growth
SMS declined due shifting trend toward messaging application started to be seen.
PT Indosat Tbk – 1H 2016 Results
16
Operational expenses
as percentage of revenue
2Q-15
3Q-15
4Q-15
1Q-16
2Q-16
42.1%
40.5%
42.1%
40.4%
41.4%
Personnel
6.9%
6.8%
7.6%
7.8%
7.3%
Marketing
4.6%
3.8%
6.8%
4.7%
4.9%
General and Administration
4.2%
2.9%
3.0%
3.7%
3.2%
57.7%
54.0%
59.6%
56.5%
56.8%
32.2%
29.8%
35.1%
32.6%
31.3%
89.9%
83.8%
94.7%
89.1%
88.1%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Moderated operational expenses
Marketing ratio was higher due to Ramadhan campaign
PT Indosat Tbk – 1H 2016 Results
17
EBITDA performance
EBITDA and EBITDA margin
in IDR billion
46.0%
42.3%
43.5%
40.4%
+11.7% YoY
3,205
2,906
2Q-15
3Q-15
EBITDA
4Q-15
2,758
43.2%
+4.0% QoQ
2,961
EBITDA performance is supported by
strong revenue growth combined with
strict cost management initiatives.
3,080
1Q-16
2Q-16
EBITDA Margin
PT Indosat Tbk – 1H 2016 Results
18
Net profit
Net profit
in IDR billion
+34.3% YoY
+158.3% YoY
428
•
Strong revenue growth, good cost
management and stabilized currency
resulted in positive net profit
-734
-1,117
1H-14*
1H-15
1H-16
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 1H 2016 Results
19
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
Net debt* and net debt/EBITDA
in IDR billion
3.13
2.54
2.32
2.22
2.03
1.85
-23.9% YoY
-2.5% YoY
32,437
25,598
1H-14
Gross Debt
1H-15
24,690
23,379
23,017
22,438
1H-16
1H-14
1H-15
1H-16
Gross Debt/EBITDA
Net Debt
Net Debt/EBITDA
* IDR 3.84tn, IDR 4.05tn and IDR 3.61tn of obligation under finance lease are included in 1H14, 1H15 and 1H16 respectively
•
•
Gearing level continuously improved
US debt portion has come down to 14% level
PT Indosat Tbk – 1H 2016 Results
20
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in IDR billion
in IDR billion
in %
37.6
29.7
26.8
21.0
1,310
2,117
1,869
837
463
877
-1,067
3Q-15*
4Q-15*
1Q-16
2Q-16
1,663
1,372
2Q-15
2Q-15*
24.4
2,699
3Q-15
Capex
4Q-15
1Q-16
2Q-16
Capex/Revenue
* Reclassification from repayment of obligation under finance lease
•
•
FCF strengthening with improved operating CF generation and moderating capex
Capex disbursement is in line with guidance toward end of year.
PT Indosat Tbk – 1H 2016 Results
21
Network & Data User
Number of BTS
+1.9% QoQ
+23.8% YoY
50,687
3,361
52,326
3,544
20,067
22,671
23,730
25,068
25,816
22,902
23,525
23,596
23,714
23,793
2Q-15
4G
3Q-15
3G
4Q-15
1Q-16
In million
53,333
3,724
46,361
165
43,075
106
•
•
Data User
2Q-16
+16.6% YoY
30.1
32.2
2Q-15
3Q-15
+12.5% QoQ
34.0
31.2
4Q-15
1Q-16
35.1
2Q-16
2G
Strong network performance to support data service.
Data users is steadily growing.
PT Indosat Tbk – 1H 2016 Results
22
Management focus
& Key updates
Management Focus
● Continue to transform Indosat Ooredoo to
become the leading digital telco in
Indonesia, both from a product offering
perspective as well as the way it interacts
with its stake holders
● Continue to build operational excellence
and efficiency as part of the company
culture
● To explore industry synergies to become
more efficient and effective
● To further strengthen the corporate (b2b)
offering to build a stable base through
connectivity and services.
PT Indosat Tbk – 1H 2016 Results
24
2016 Guidance
FY 2015 Actual
FY 2016 Guidance
Consolidated Revenue Growth
11.1%
In line with market
EBITDA Margin*
42.9%
Low to Mid 40’s
IDR 7.3 trillion
IDR 6.5 – 7.5 trillion
CAPEX
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 1H 2016 Results
25
Thank You
Investor Relations & Corporate Secretary
Jl. Medan Merdeka Barat No. 21
Jakarta - 10110
Tel: +62 21 30442615
Investor@indosatooredoo.com
Supplemental
Information
IM2 case development
On September 16, 2014, the South Jakarta Attorney Office (“Kejaksaan
Negeri Jakarta Selatan”), without preliminary notification, executed the
Supreme Court’s Decision on Mr. Indar Atmanto. The execution was
done based on a quotation of the Supreme Court’s Decision, which
states, among others, that (i) Mr. Indar Atmanto is found guilty and
sentenced to eight years imprisonment and charged with penalty of
Rp300,000,000,- (if the penalty is not paid, Mr. Indar Atmanto would
serve an additional six months imprisonment), and (ii) IM2 pay the
losses sustained by the State amounting to Rp1,358,343,346,674,-.
Subsequently, on January 16, 2015, Mr.Indar Atmanto and/or his lawyer
or IM2 received the document on the Supreme Court’s decision
regarding the litigation case. As of the issuance date of the consolidated
financial statements, Mr. Indar Atmanto and IM2 plan to conduct further
legal act by submitting a reconsideration request peninjauan kembali
(”PK”).
On March 16, 2015, Mr. Indar Atmanto’s submission of Judicial Review
[Peninjauan Kembali (”PK”)] was officially registered at the Corruption
Court under No. 08/AKTA.PID.SUS/PK/TPK/2015/PN.Jkt.Pst.
PT Indosat Tbk – 1H 2016 Results
On November 4, 2015, the Supreme Court’s official website announced
that the Judicial Review filed by Mr. Indar Atmanto was rejected based
on Supreme Court’s decision dated October 20, 2015. However, no
detailed information regarding the exact content of such Supreme
Court’s decision was available. As of the issuance date of the interim
consolidated financial statements, the official copy of such Supreme
Court’s decision hasn’t been received.
28
Credit ratings
On 1 June 2016, Moody's Investors Service has affirmed Indosat Tbk. (P.T.)'s Ba1
corporate family rating. At the same time, Moody's has changed the rating outlook to
positive from stable. The change in outlook to positive reflects the substantial
improvement evident in Indosat's operational and financial profiles, with the company -over the last four quarters -- reporting YoY revenue growth of 11%-13%, above the sector
average in Indonesia of about 9%.
On 15 March 2016, Fitch Ratings has upgraded the Long-Term Local-Currency Issuer
Default Rating (LC IDR) of Indonesia’s second-largest telecommunications operator, PT
Indosat Tbk (Indosat Ooredoo), to ‘BBB+’ from ‘BBB’. The agency has simultaneously
affirmed Indosat Ooredoo’s Long-Term Foreign-Currency IDR (FC IDR) and its foreigncurrency senior unsecured rating at ‘BBB’. Fitch has also affirmed the National Long-Term
Rating at ‘AAA(idn)’. The Outlook on the ratings is Stable.
On 25 January 2016, Standard & Poor's Ratings Services (“S&P”) affirmed its 'BB+‘ longterm corporate credit rating on PT Indosat Tbk. The outlook is positive. S&P also affirmed
their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based
telecommunications company. S&P affirmed the rating because they expect Indosat to
maintain its solid No.2 position in Indonesia's growing cellular market. The positive outlook
reflects their view that the company's financial risk profile will improve over the next 12-18
months.
On 28 September 2015, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk
(ISAT) and its Shelf-Registered Bond I/2014-2016, Bonds V/2007 Serie B, Bonds VII/2009
Serie B, and Bonds VIII/2012. PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s
Sukuk Ijarah I/2014-2016, Sukuk Ijarah IV/2009 Serie B, and Sukuk Ijarah V/2012. The
outlook for the corporate rating is “stable”. The ratings reflect ISAT’s strong support from its
majority shareholder, strong market position, and stable operating performance.
PT Indosat Tbk – 1H 2016 Results
29
Debt maturity profile*
In IDR trillion
5.98
2.72
2.11
0.36
2016
2017
2.56
2.27
0.27
0.27
0.95
0.36
2018
2019
2020
2021
IDR
2.08
2022
0.36
0.81
2024
2025
* Excluding obligation under capital lease
USD in IDR
PT Indosat Tbk – 1H 2016 Results
30
Spectrum overview
in Mhz
Number of BTS850 Mhz
Indosat
900 Mhz
1800 Mhz
2100 Mhz
2300 Mhz
2.5
10.0
20.0
10.0
15.0**
4.5*
7.5
22.5
15.0
15.0**
XL Axiata
-
7.5
22.5
15.0
-
Hutchison
-
-
10.0
10.0
-
Telkomsel
* Telkom and Bakrie Telekom have the same spectrum, differentiated by its operational areas
** Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku
PT Indosat Tbk – 1H 2016 Results
31
Disclaimer
•
PT Indosat Tbk ( “Indosat” or “Company” ) cautions investors that certain statements contained in this
document state its management's intentions, hopes, beliefs, expectations, or predictions of the future are
forward-looking statements
•
The Company wishes to caution the reader that forward-looking statements are not historical facts and are
only estimates or predictions. Actual results may differ materially from those projected as a result of risks and
uncertainties including, but not limited to:
•
The Company’s ability to manage domestic and international growth and maintain a high level of
customer service
•
Future sales growth
•
Market acceptance of the Company’s product and service offerings
•
The Company’s ability to secure adequate financing or equity capital to fund our operations
•
Network expansion
•
Performance of the Company’s network and equipment
•
The Company’s ability to enter into strategic alliances or transactions
•
Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our
equipment
•
Regulatory approval processes
•
Changes in technology
•
Price competition
•
Other market conditions and associated risks
•
The company undertakes no obligation to update publicly any forward-looking statements, whether as a result
of future events, new information, or otherwise
PT Indosat Tbk – 1H 2016 Results
32
First Half 2016 Results
PT Indosat Tbk – 1H 2016 Results
2
Indosat Ooredoo Juara
Revenue growth
4.6% growth QoQ
Cellular Revenue growth
4.2% growth for QoQ
Data Revenue growth
20.1% growth QoQ
55.5% growth YoY
Voice & SMS Revenue growth
5.7% growth YoY
Data Traffic growth
46.3% growth QoQ
83.5% growth YoY
PT Indosat Tbk – 1H 2016 Results
3
Moving into LTE
Pontianak
Balikpapan
Samarinda
Banjarmasin
Padang
Bukittinggi
Batam
Karawang
Bandung
Tasikmalaya
Sukabumi
Cianjur
Lampung
Metro
Jakarta
Bogor
Depok
Bekasi
Tangerang
Makassar
Yogyakarta
Semarang
Solo
Purwokerto
Salatiga
Demak
Rembang
Kudus
Magelang
CIlacap
Surabaya
Malang
Mojokerto
Tuban
Gresik
Bojonegoro
Sidoarjo
Kediri
Denpasar
Badung (Kuta
/ Nusa Dua)
40 Cities, 43 million population coverage
PT Indosat Tbk – 1H 2016 Results
4
Indosat Ooredoo Business
Services
3 Stream of Services
Fixed
Connectivity
Leased Circuit
Fixed Internet
IP Transit
Data Center
Cloud Infrastructure
as-a-Service
Ethernet Link
IPVPN
IT Services
Dedicated Internet
Access
Disaster Recovery
Center 3
Business is coming from Large Enterprise customer with focus on fixed connectivity & internet
and IT Services.
In the last 2 years, we develop B2B mobile business which related to mobile data connectivity
and application.
PT Indosat Tbk – 1H 2016 Results
6
Our business transformation journey is moving
towards being “Indonesia’s Leading Digital Telco”
PT Indosat Tbk – 1H 2016 Results
7
Financial and
Operational Highlights
1H16 YoY Overview
Consolidated Revenue increased 10.5%
from IDR 12,620 billion to IDR 13,942 billion
EBITDA increased 12.6% from IDR 5,362
billion to IDR 6,040 billion, EBITDA Margin
reached 43.3%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 734 billion to a
profit of IDR 428 billion
Free Cash Flow decreased from IDR 1,792
billion to IDR 1,340 billion
PT Indosat Tbk – 1H 2016 Results
9
2Q16 QoQ Overview
Consolidated Revenue increased 4.6%
from IDR 6,813 billion to IDR 7,129 billion
EBITDA increased 4.0% from IDR 2,961
billion to IDR 3,080 billion, EBITDA Margin
reached 43.2%
Profit Attributable to Owners of The Parent
slightly decreased from IDR 217 billion to
IDR 211 billion
Free Cash Flow increased from IDR 463
billion to IDR 877 billion
PT Indosat Tbk – 1H 2016 Results
10
Financial Highlights
in IDR billion
Operating Revenue
EBITDA
EBITDA Margin
Profit (Loss)Attributable
to Owners of the Parent
•
•
QoQ
1H-15
1H-16
YoY
1Q-16
2Q-16
12,620
13,942
10.5%
6,813
7,129
4.6%
5,362
6,040
12.6%
2,961
3,080
4.0%
42.5%
43.3%
0.8ppt
43.5%
43.2%
-0.3ppt
428 158.3%
217
211
-2.9%
-734
Double digit Revenue and EBITDA growth YoY in 2 consecutive quarters supported
by growth in all services (voice, SMS, data dan VAS).
Positive bottom line maintained in line with stabilized currency and reduction of USD
debt portion.
PT Indosat Tbk – 1H 2016 Results
11
Segment Revenue Overview
in IDR billion
Operating Revenue Breakdown
+9.2% YoY
6,962
271
272
286
936
921
997
5,321
5,768
2Q-15
3Q-15
Fixed Voice
•
•
7,187
6,527
Fixed Data
+4.6% QoQ
6,813
7,129
QoQ / YoY
226
-1.0% / -16.5%
909
989
+8.9% / +5.7%
5,904
5,676
5,914
4Q-15
1Q-16
2Q-16
228
+4.2% / +11.2%
Cellular
Strong data cellular revenue continue to grow and surpass traditional cellular services.
IDR appreciation drove IDD revenue down and eventually brought down Fixed voice
revenue QoQ and YoY.
PT Indosat Tbk – 1H 2016 Results
12
Cellular Revenue Performance
Voice
1H16
YoY
2Q16
QoQ
5.2%
0.9%
SMS
6.4%
-3.6%
Data
55.5%
20.1%
VAS
23.1%
30.8%
PT Indosat Tbk – 1H 2016 Results
- Healthy growth in all services YoY
- Data took the lead in driving the cellular
revenue growth
Digital business initiatives had pushed VAS
revenue growth
13
Cellular Customer Base
Number of cellular customers
in million
Net cellular customers additions
in million
+17.3% YoY
+15.3% QoQ
80.5
68.5
69.0
10.7
69.8
69.7
2.0
0.5
2Q-15
•
3Q-15
4Q-15
1Q-16
2Q-16
2Q-15
3Q-15
0.8
0.1
4Q-15
1Q-16
2Q-16
A combination of data campaign and specific marketing program for ex-Java market
had taken the momentum in Ramadhan month
PT Indosat Tbk – 1H 2016 Results
14
Improving ARPU
ARPU and ARPM
in thousand IDR
(ARPU)
143
145
Voice Traffic and MOU
in IDR
(ARPM)
137
135
in billion minutes
(Voice Traffic)
126
76
70
67
+0.9% YoY
in minute/subscriber
(MOU)
69
-3.4% QoQ
+15.8% YoY
25.3
26.9
27.9
26.4
25.5
13.5
14.6
15.6
2Q-15
3Q-15
4Q-15
1Q-16
2Q-16
2Q-15
3Q-15
4Q-15
ARPU
•
•
71
ARPM
Voice Traffic
+7.7% QoQ
14.5
1Q-16
15.6
2Q-16
MOU
ARPU growth maintained YoY in line with data users growth.
Voice traffic was growing due to our expansion in outside of Java area continues.
PT Indosat Tbk – 1H 2016 Results
15
Strong Data Usage
Data Usage
SMS Delivered
in TByte
in billion
+103.4% YoY
93,641
55,871
57,276
3Q-15
4Q-15
-7.8% YoY
+46.3% QoQ
60
62
+5.6% QoQ
59
52
63,987
55
46,027
2Q-15
•
•
1Q-16
2Q-16
2Q-15
3Q-15
4Q-15
1Q-16
2Q-16
4G traffic started to drive data usage growth
SMS declined due shifting trend toward messaging application started to be seen.
PT Indosat Tbk – 1H 2016 Results
16
Operational expenses
as percentage of revenue
2Q-15
3Q-15
4Q-15
1Q-16
2Q-16
42.1%
40.5%
42.1%
40.4%
41.4%
Personnel
6.9%
6.8%
7.6%
7.8%
7.3%
Marketing
4.6%
3.8%
6.8%
4.7%
4.9%
General and Administration
4.2%
2.9%
3.0%
3.7%
3.2%
57.7%
54.0%
59.6%
56.5%
56.8%
32.2%
29.8%
35.1%
32.6%
31.3%
89.9%
83.8%
94.7%
89.1%
88.1%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Moderated operational expenses
Marketing ratio was higher due to Ramadhan campaign
PT Indosat Tbk – 1H 2016 Results
17
EBITDA performance
EBITDA and EBITDA margin
in IDR billion
46.0%
42.3%
43.5%
40.4%
+11.7% YoY
3,205
2,906
2Q-15
3Q-15
EBITDA
4Q-15
2,758
43.2%
+4.0% QoQ
2,961
EBITDA performance is supported by
strong revenue growth combined with
strict cost management initiatives.
3,080
1Q-16
2Q-16
EBITDA Margin
PT Indosat Tbk – 1H 2016 Results
18
Net profit
Net profit
in IDR billion
+34.3% YoY
+158.3% YoY
428
•
Strong revenue growth, good cost
management and stabilized currency
resulted in positive net profit
-734
-1,117
1H-14*
1H-15
1H-16
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 1H 2016 Results
19
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
Net debt* and net debt/EBITDA
in IDR billion
3.13
2.54
2.32
2.22
2.03
1.85
-23.9% YoY
-2.5% YoY
32,437
25,598
1H-14
Gross Debt
1H-15
24,690
23,379
23,017
22,438
1H-16
1H-14
1H-15
1H-16
Gross Debt/EBITDA
Net Debt
Net Debt/EBITDA
* IDR 3.84tn, IDR 4.05tn and IDR 3.61tn of obligation under finance lease are included in 1H14, 1H15 and 1H16 respectively
•
•
Gearing level continuously improved
US debt portion has come down to 14% level
PT Indosat Tbk – 1H 2016 Results
20
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in IDR billion
in IDR billion
in %
37.6
29.7
26.8
21.0
1,310
2,117
1,869
837
463
877
-1,067
3Q-15*
4Q-15*
1Q-16
2Q-16
1,663
1,372
2Q-15
2Q-15*
24.4
2,699
3Q-15
Capex
4Q-15
1Q-16
2Q-16
Capex/Revenue
* Reclassification from repayment of obligation under finance lease
•
•
FCF strengthening with improved operating CF generation and moderating capex
Capex disbursement is in line with guidance toward end of year.
PT Indosat Tbk – 1H 2016 Results
21
Network & Data User
Number of BTS
+1.9% QoQ
+23.8% YoY
50,687
3,361
52,326
3,544
20,067
22,671
23,730
25,068
25,816
22,902
23,525
23,596
23,714
23,793
2Q-15
4G
3Q-15
3G
4Q-15
1Q-16
In million
53,333
3,724
46,361
165
43,075
106
•
•
Data User
2Q-16
+16.6% YoY
30.1
32.2
2Q-15
3Q-15
+12.5% QoQ
34.0
31.2
4Q-15
1Q-16
35.1
2Q-16
2G
Strong network performance to support data service.
Data users is steadily growing.
PT Indosat Tbk – 1H 2016 Results
22
Management focus
& Key updates
Management Focus
● Continue to transform Indosat Ooredoo to
become the leading digital telco in
Indonesia, both from a product offering
perspective as well as the way it interacts
with its stake holders
● Continue to build operational excellence
and efficiency as part of the company
culture
● To explore industry synergies to become
more efficient and effective
● To further strengthen the corporate (b2b)
offering to build a stable base through
connectivity and services.
PT Indosat Tbk – 1H 2016 Results
24
2016 Guidance
FY 2015 Actual
FY 2016 Guidance
Consolidated Revenue Growth
11.1%
In line with market
EBITDA Margin*
42.9%
Low to Mid 40’s
IDR 7.3 trillion
IDR 6.5 – 7.5 trillion
CAPEX
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 1H 2016 Results
25
Thank You
Investor Relations & Corporate Secretary
Jl. Medan Merdeka Barat No. 21
Jakarta - 10110
Tel: +62 21 30442615
Investor@indosatooredoo.com
Supplemental
Information
IM2 case development
On September 16, 2014, the South Jakarta Attorney Office (“Kejaksaan
Negeri Jakarta Selatan”), without preliminary notification, executed the
Supreme Court’s Decision on Mr. Indar Atmanto. The execution was
done based on a quotation of the Supreme Court’s Decision, which
states, among others, that (i) Mr. Indar Atmanto is found guilty and
sentenced to eight years imprisonment and charged with penalty of
Rp300,000,000,- (if the penalty is not paid, Mr. Indar Atmanto would
serve an additional six months imprisonment), and (ii) IM2 pay the
losses sustained by the State amounting to Rp1,358,343,346,674,-.
Subsequently, on January 16, 2015, Mr.Indar Atmanto and/or his lawyer
or IM2 received the document on the Supreme Court’s decision
regarding the litigation case. As of the issuance date of the consolidated
financial statements, Mr. Indar Atmanto and IM2 plan to conduct further
legal act by submitting a reconsideration request peninjauan kembali
(”PK”).
On March 16, 2015, Mr. Indar Atmanto’s submission of Judicial Review
[Peninjauan Kembali (”PK”)] was officially registered at the Corruption
Court under No. 08/AKTA.PID.SUS/PK/TPK/2015/PN.Jkt.Pst.
PT Indosat Tbk – 1H 2016 Results
On November 4, 2015, the Supreme Court’s official website announced
that the Judicial Review filed by Mr. Indar Atmanto was rejected based
on Supreme Court’s decision dated October 20, 2015. However, no
detailed information regarding the exact content of such Supreme
Court’s decision was available. As of the issuance date of the interim
consolidated financial statements, the official copy of such Supreme
Court’s decision hasn’t been received.
28
Credit ratings
On 1 June 2016, Moody's Investors Service has affirmed Indosat Tbk. (P.T.)'s Ba1
corporate family rating. At the same time, Moody's has changed the rating outlook to
positive from stable. The change in outlook to positive reflects the substantial
improvement evident in Indosat's operational and financial profiles, with the company -over the last four quarters -- reporting YoY revenue growth of 11%-13%, above the sector
average in Indonesia of about 9%.
On 15 March 2016, Fitch Ratings has upgraded the Long-Term Local-Currency Issuer
Default Rating (LC IDR) of Indonesia’s second-largest telecommunications operator, PT
Indosat Tbk (Indosat Ooredoo), to ‘BBB+’ from ‘BBB’. The agency has simultaneously
affirmed Indosat Ooredoo’s Long-Term Foreign-Currency IDR (FC IDR) and its foreigncurrency senior unsecured rating at ‘BBB’. Fitch has also affirmed the National Long-Term
Rating at ‘AAA(idn)’. The Outlook on the ratings is Stable.
On 25 January 2016, Standard & Poor's Ratings Services (“S&P”) affirmed its 'BB+‘ longterm corporate credit rating on PT Indosat Tbk. The outlook is positive. S&P also affirmed
their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based
telecommunications company. S&P affirmed the rating because they expect Indosat to
maintain its solid No.2 position in Indonesia's growing cellular market. The positive outlook
reflects their view that the company's financial risk profile will improve over the next 12-18
months.
On 28 September 2015, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk
(ISAT) and its Shelf-Registered Bond I/2014-2016, Bonds V/2007 Serie B, Bonds VII/2009
Serie B, and Bonds VIII/2012. PEFINDO has also affirmed its “idAAA(sy)” ratings for ISAT’s
Sukuk Ijarah I/2014-2016, Sukuk Ijarah IV/2009 Serie B, and Sukuk Ijarah V/2012. The
outlook for the corporate rating is “stable”. The ratings reflect ISAT’s strong support from its
majority shareholder, strong market position, and stable operating performance.
PT Indosat Tbk – 1H 2016 Results
29
Debt maturity profile*
In IDR trillion
5.98
2.72
2.11
0.36
2016
2017
2.56
2.27
0.27
0.27
0.95
0.36
2018
2019
2020
2021
IDR
2.08
2022
0.36
0.81
2024
2025
* Excluding obligation under capital lease
USD in IDR
PT Indosat Tbk – 1H 2016 Results
30
Spectrum overview
in Mhz
Number of BTS850 Mhz
Indosat
900 Mhz
1800 Mhz
2100 Mhz
2300 Mhz
2.5
10.0
20.0
10.0
15.0**
4.5*
7.5
22.5
15.0
15.0**
XL Axiata
-
7.5
22.5
15.0
-
Hutchison
-
-
10.0
10.0
-
Telkomsel
* Telkom and Bakrie Telekom have the same spectrum, differentiated by its operational areas
** Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku
PT Indosat Tbk – 1H 2016 Results
31
Disclaimer
•
PT Indosat Tbk ( “Indosat” or “Company” ) cautions investors that certain statements contained in this
document state its management's intentions, hopes, beliefs, expectations, or predictions of the future are
forward-looking statements
•
The Company wishes to caution the reader that forward-looking statements are not historical facts and are
only estimates or predictions. Actual results may differ materially from those projected as a result of risks and
uncertainties including, but not limited to:
•
The Company’s ability to manage domestic and international growth and maintain a high level of
customer service
•
Future sales growth
•
Market acceptance of the Company’s product and service offerings
•
The Company’s ability to secure adequate financing or equity capital to fund our operations
•
Network expansion
•
Performance of the Company’s network and equipment
•
The Company’s ability to enter into strategic alliances or transactions
•
Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our
equipment
•
Regulatory approval processes
•
Changes in technology
•
Price competition
•
Other market conditions and associated risks
•
The company undertakes no obligation to update publicly any forward-looking statements, whether as a result
of future events, new information, or otherwise
PT Indosat Tbk – 1H 2016 Results
32