Indosat 9M16 Final
PT. Indosat Tbk.
Nine Months 2016 Results
49th Anniversary
20 November 1967 – 20 November 2016
PT Indosat Tbk – 9M 2016 Results
2
Indosat Ooredoo reborn
After 1 year
Leading the market with innovations
Innovative content-enriched offerings, simple and fair
tariff schemes attract more and better customers to us
PT Indosat Tbk – 9M 2016 Results
4
High-impact and distinctive branding
Continuous M3 Ooredoo and 4Gplus campaigns with strong
visibility and recognition drive brand preference and
differentiation
PT Indosat Tbk – 9M 2016 Results
5
Simplified and superior customer experience
Create a more open, streamlined and agile products and way
of doing things; inject the “digital spirit”
PT Indosat Tbk – 9M 2016 Results
6
Financial and
Operational Highlights
9M16 YoY Overview
Consolidated Revenue increased 9.9%
from IDR 19,582 billion to IDR 21,525 billion
EBITDA increased 10.5% from IDR 8,568
billion to IDR 9,466 billion, EBITDA Margin
reached 44.0%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 1,122 billion to
a profit of IDR 845 billion
Free Cash Flow decreased from IDR 2,953
billion to IDR 2,647 billion
PT Indosat Tbk – 9M 2016 Results
8
3Q16 QoQ Overview
Consolidated Revenue increased 6.4%
from IDR 7,129 billion to IDR 7,583 billion
EBITDA increased 11.2% from IDR 3,080
billion to IDR 3,425 billion, EBITDA Margin
reached 45.2%
Profit Attributable to Owners of The Parent
increased 97.9% from IDR 211 billion to IDR
417 billion
Free Cash Flow increased from IDR 877
billion to IDR 1,307 billion
PT Indosat Tbk – 9M 2016 Results
9
Financial Highlights
in IDR billion
9M-16
YoY
2Q-16
3Q-16
19,582
21,525
9.9%
7,129
7,583
6.4%
8,568
9,466
10.5%
3,080
3,425
11.2%
EBITDA Margin
43.8%
44.0%
0.2ppt
43.2%
45.2%
2ppt
Profit (Loss)Attributable
to Owners of the Parent
-1,122
845 175.3%
211
417
97.9%
Operating Revenue
EBITDA
•
QoQ
9M-15
Strong growth in revenue combine with successful cost control initiative and stable
currency rate contribute to strong growth in EBITDA and positive bottom line.
PT Indosat Tbk – 9M 2016 Results
10
Segment Revenue Overview
Operating Revenue Breakdown
in IDR billion
+6.4% QoQ
+8.9% YoY
6,962
272
286
7,583
228
226
238
909
989
1044
+5.5% / +13.3%
+6.5% / +9.2%
6,813
997
5,768
5,904
5,676
5,914
6,301
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
Fixed Data
QoQ / YoY
7,129
921
Fixed Voice
•
•
7,187
+5.3% / -12.8%
Cellular
Quarterly cellular revenue in 3Q-16 grew due to seasonality – Ramadan and Hajj.
Initiative in fixed data segment to provide IT service that was launched back in 1Q-16
started to deliver a result to support revenue growth.
PT Indosat Tbk – 9M 2016 Results
11
Cellular Revenue Performance
Voice
9M-16
YoY
3Q-16
QoQ
2.9%
2.9%
SMS
2.4%
8.0%
Data
52.2%
0.3%
VAS
32.7%
13.2%
PT Indosat Tbk – 9M 2016 Results
- Healthy growth in all services YoY and
QoQ.
- Initiative to optimize revenue generated by
traditional business was able to prevent
sharp decline from data cannibalization.
Digital business initiatives pushed VAS
revenue growth
12
Cellular Customer Base
Number of cellular customers
in million
in million
+18.3% YoY
+1.4% QoQ
80.5
69.0
Net cellular customers additions
69.7
10.7
81.6
69.8
0.5
3Q-15
•
4Q-15
1Q-16
2Q-16
3Q-16
3Q-15
0.8
4Q-15
1.1
0.1
1Q-16
2Q-16
3Q-16
Momentum continued due to Ramadan and Hajj season, raised number of data
users.
PT Indosat Tbk – 9M 2016 Results
13
ARPU maintained
ARPU and ARPM
in thousand IDR
(ARPU)
143
Voice Traffic and MOU
in IDR
(ARPM)
135
137
126
in billion minutes
(Voice Traffic)
124
76
70
-10.2% YoY
in minute/subscriber
(MOU)
69
+6.6% QoQ
26.9
27.9
26.4
25.5
24.2
14.6
15.6
14.5
15.6
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
3Q-15
4Q-15
1Q-16
2Q-16
ARPU
•
66
-5.3% QoQ
+13.9% YoY
•
71
ARPM
Voice Traffic
16.6
3Q-16
MOU
ARPU slightly declined on QoQ basis due to aggressive campaign in ex-Java market.
However, ARPU as of 9M-16 YoY maintained.
Voice traffic increased due to our expansion in ex-Java area continues.
PT Indosat Tbk – 9M 2016 Results
14
Strong Data Usage
Data Usage
SMS Delivered
in billion
in TByte
+161.4% YoY
+56.0% QoQ
146,060
-21.2% YoY
62
59
52
-11.6% QoQ
55
49
93,641
55,871
3Q-15
•
•
57,276
4Q-15
63,987
1Q-16
2Q-16
3Q-16
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
Data traffic spiked due to aggressive campaign during Ramadan and Hajj season.
SMS traffic continued to decline as trend shifting toward messaging application.
PT Indosat Tbk – 9M 2016 Results
15
Operational expenses
as percentage of revenue
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
40.5%
42.1%
40.4%
41.4%
40.6%
Personnel
6.8%
7.6%
7.8%
7.3%
6.8%
Marketing
3.8%
6.8%
4.7%
4.9%
4.0%
General and Administration
2.9%
3.0%
3.7%
3.2%
3.5%
54.0%
59.6%
56.5%
56.8%
54.9%
29.8%
35.1%
32.6%
31.3%
29.9%
83.8%
94.7%
89.1%
88.1%
84.8%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Moderated operational expenses
Continued improvement in operational process
PT Indosat Tbk – 9M 2016 Results
16
EBITDA performance
EBITDA and EBITDA margin
in IDR billion
46.0%
40.4%
43.5%
43.2%
+11.2% QoQ
+6.9% YoY
3,205
2,906
2,961
4Q-15
3Q-15
EBITDA
1Q-16
45.2%
3,080
Quarterly EBITDA in 3Q-16 in line with
guidance.
3,425
2Q-16
3Q-16
EBITDA Margin
PT Indosat Tbk – 9M 2016 Results
17
Net profit
Net profit
in IDR billion
+15.6% YoY
+175.3% YoY
845
Improvement in operational level combine
with stable currency movement and low
USD debt resulted positive net profit.
-1,122
-1,330
9M-14*
9M-15
9M-16
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 9M 2016 Results
18
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
2.57
Net debt* and net debt/EBITDA
in IDR billion
2.33
2.45
2.11
1.90
1.71
-13.1% YoY
25,676
27,002
9M-14
9M-15
Gross Debt
23,476
9M-16
Gross Debt/EBITDA
-9.3% YoY
23,340
23,273
21,120
9M-14
9M-15
9M-16
Net Debt
Net Debt/EBITDA
* IDR 3.95tn, IDR 4.24tn and IDR 3.46tn of obligation under finance lease are included in 9M14, 9M15 and 9M16 respectively
•
•
Gearing level continuously improved
US debt portion has come down to 12% level
PT Indosat Tbk – 9M 2016 Results
19
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in %
in IDR billion
in IDR billion
37.6
29.7
26.8
2,699
1,307
1,161
1,869
25.2
24.4
2,117
1,910
2Q-16
3Q-16
1,663
877
463
3Q-15
-1,392
3Q-15*
4Q-15*
1Q-16
2Q-16
3Q-16
4Q-15
Capex
1Q-16
Capex/Revenue
* Reclassification from repayment of obligation under finance lease
•
•
FCF is steadily growing, supported by improved operating CF generation and
moderated capex.
Capex disbursement is in line with guidance toward end of year.
PT Indosat Tbk – 9M 2016 Results
20
Network & Data User
Number of BTS
+1.6% QoQ
+16.9% YoY
53,333
3,724
165
22,671
23,730
25,068
25,816
26,273
23,525
23,596
23,714
23,793
23,859
3Q-15
4G
4Q-15
3G
1Q-16
2Q-16
In million
+22.4% YoY
+12.3% QoQ
54,212
50,687
3,361
46,361
•
•
52,326
3,544
Data User
4,080
3Q-16
32.2
34.0
3Q-15
4Q-15
35.1
39.4
31.2
1Q-16
2Q-16
3Q-16
2G
4G coverage has reached 94 cities and counting
Data users are steadily growing with 1.3Gb/month usage on average.
PT Indosat Tbk – 9M 2016 Results
21
Management focus
& Key updates
Competition in Data today
•
RPMB*
in IDR / MB
33.1
34.2
30.9
32.8
•
27.6
17.7
•
2Q-15
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
* RPMB: Revenue Per Megabyte
PT Indosat Tbk – 9M 2016 Results
We observe a trend of decreasing data
yields in the market with Indosat data
yields also significantly decreasing over
the last two quarters.
The yield reduction reflects the
intensifying competition in the market with
major players offering significant bonus
quotas of data to secure market share.
Starting in 4Q-16 Indosat Ooredoo is
reducing the bonus quotas of data from
the currently high levels to more moderate
levels to effectively bring the data yields.
We hope that the other market players will
also realign behind this positive trend and
contribute to a healthier and more rational
market.
23
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 – 9M 2016 Results
24
2016 Guidance
9M-16
Actual
Consolidated Revenue Growth
EBITDA Margin
CAPEX
PT Indosat Tbk – 9M 2016 Results
FY 2016
Guidance
9.9%
In line with market
44.0%
Low to Mid 40’s
IDR 5.7 trillion
IDR 6.5 – 7.5 trillion
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 – 9M 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 12 August 2016, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk (ISAT)
and its Shelf Registration Bond I/2014-2016 including its proposed fourth phase issuance
of up to IDR3.2 trillion; 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 Shelf Registration
Sukuk Ijarah I/2014-2016, including its proposed fourth phase issuance of up to IDR288
billion; Sukuk Ijarah IV/2009 Serie B; and Sukuk Ijarah V/2012. The outlook for the
corporate rating is “stable”.
PT Indosat Tbk – 9M 2016 Results
29
Debt maturity profile*
In IDR trillion
5.32
3.62
2.06
2.08
1.82
0.95
0.92
0.08
2016
2017
0.26
0.26
2018
2019
IDR
1.10
0.81
0.12
2020
2021
2022
2023
0.36
2024
0.26
2025
2026
* Excluding obligation under capital lease
USD in IDR
PT Indosat Tbk – 9M 2016 Results
30
Spectrum overview
in Mhz
Number of BTS850 Mhz
900 Mhz
1800 Mhz
2100 Mhz
2 x 2.5
2 x 10.0
2 x 20.0
2 x 10.0
2020
2020
2020
2 x 4.5
2 x 7.5
2 x 22.5
2 x 15.0
15.0*
XL Axiata
-
2 x 7.5
2 x 22.5
2 x 15.0
-
Hutchison
-
-
2 x 10.0
2 x 10.0
-
Indosat
Valid until
Telkomsel
2019 & 2026
2300 Mhz
15.0*
2019
* Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku
PT Indosat Tbk – 9M 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 – 9M 2016 Results
32
Nine Months 2016 Results
49th Anniversary
20 November 1967 – 20 November 2016
PT Indosat Tbk – 9M 2016 Results
2
Indosat Ooredoo reborn
After 1 year
Leading the market with innovations
Innovative content-enriched offerings, simple and fair
tariff schemes attract more and better customers to us
PT Indosat Tbk – 9M 2016 Results
4
High-impact and distinctive branding
Continuous M3 Ooredoo and 4Gplus campaigns with strong
visibility and recognition drive brand preference and
differentiation
PT Indosat Tbk – 9M 2016 Results
5
Simplified and superior customer experience
Create a more open, streamlined and agile products and way
of doing things; inject the “digital spirit”
PT Indosat Tbk – 9M 2016 Results
6
Financial and
Operational Highlights
9M16 YoY Overview
Consolidated Revenue increased 9.9%
from IDR 19,582 billion to IDR 21,525 billion
EBITDA increased 10.5% from IDR 8,568
billion to IDR 9,466 billion, EBITDA Margin
reached 44.0%
Profit Attributable to Owners of The Parent
increased from a loss of IDR 1,122 billion to
a profit of IDR 845 billion
Free Cash Flow decreased from IDR 2,953
billion to IDR 2,647 billion
PT Indosat Tbk – 9M 2016 Results
8
3Q16 QoQ Overview
Consolidated Revenue increased 6.4%
from IDR 7,129 billion to IDR 7,583 billion
EBITDA increased 11.2% from IDR 3,080
billion to IDR 3,425 billion, EBITDA Margin
reached 45.2%
Profit Attributable to Owners of The Parent
increased 97.9% from IDR 211 billion to IDR
417 billion
Free Cash Flow increased from IDR 877
billion to IDR 1,307 billion
PT Indosat Tbk – 9M 2016 Results
9
Financial Highlights
in IDR billion
9M-16
YoY
2Q-16
3Q-16
19,582
21,525
9.9%
7,129
7,583
6.4%
8,568
9,466
10.5%
3,080
3,425
11.2%
EBITDA Margin
43.8%
44.0%
0.2ppt
43.2%
45.2%
2ppt
Profit (Loss)Attributable
to Owners of the Parent
-1,122
845 175.3%
211
417
97.9%
Operating Revenue
EBITDA
•
QoQ
9M-15
Strong growth in revenue combine with successful cost control initiative and stable
currency rate contribute to strong growth in EBITDA and positive bottom line.
PT Indosat Tbk – 9M 2016 Results
10
Segment Revenue Overview
Operating Revenue Breakdown
in IDR billion
+6.4% QoQ
+8.9% YoY
6,962
272
286
7,583
228
226
238
909
989
1044
+5.5% / +13.3%
+6.5% / +9.2%
6,813
997
5,768
5,904
5,676
5,914
6,301
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
Fixed Data
QoQ / YoY
7,129
921
Fixed Voice
•
•
7,187
+5.3% / -12.8%
Cellular
Quarterly cellular revenue in 3Q-16 grew due to seasonality – Ramadan and Hajj.
Initiative in fixed data segment to provide IT service that was launched back in 1Q-16
started to deliver a result to support revenue growth.
PT Indosat Tbk – 9M 2016 Results
11
Cellular Revenue Performance
Voice
9M-16
YoY
3Q-16
QoQ
2.9%
2.9%
SMS
2.4%
8.0%
Data
52.2%
0.3%
VAS
32.7%
13.2%
PT Indosat Tbk – 9M 2016 Results
- Healthy growth in all services YoY and
QoQ.
- Initiative to optimize revenue generated by
traditional business was able to prevent
sharp decline from data cannibalization.
Digital business initiatives pushed VAS
revenue growth
12
Cellular Customer Base
Number of cellular customers
in million
in million
+18.3% YoY
+1.4% QoQ
80.5
69.0
Net cellular customers additions
69.7
10.7
81.6
69.8
0.5
3Q-15
•
4Q-15
1Q-16
2Q-16
3Q-16
3Q-15
0.8
4Q-15
1.1
0.1
1Q-16
2Q-16
3Q-16
Momentum continued due to Ramadan and Hajj season, raised number of data
users.
PT Indosat Tbk – 9M 2016 Results
13
ARPU maintained
ARPU and ARPM
in thousand IDR
(ARPU)
143
Voice Traffic and MOU
in IDR
(ARPM)
135
137
126
in billion minutes
(Voice Traffic)
124
76
70
-10.2% YoY
in minute/subscriber
(MOU)
69
+6.6% QoQ
26.9
27.9
26.4
25.5
24.2
14.6
15.6
14.5
15.6
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
3Q-15
4Q-15
1Q-16
2Q-16
ARPU
•
66
-5.3% QoQ
+13.9% YoY
•
71
ARPM
Voice Traffic
16.6
3Q-16
MOU
ARPU slightly declined on QoQ basis due to aggressive campaign in ex-Java market.
However, ARPU as of 9M-16 YoY maintained.
Voice traffic increased due to our expansion in ex-Java area continues.
PT Indosat Tbk – 9M 2016 Results
14
Strong Data Usage
Data Usage
SMS Delivered
in billion
in TByte
+161.4% YoY
+56.0% QoQ
146,060
-21.2% YoY
62
59
52
-11.6% QoQ
55
49
93,641
55,871
3Q-15
•
•
57,276
4Q-15
63,987
1Q-16
2Q-16
3Q-16
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
Data traffic spiked due to aggressive campaign during Ramadan and Hajj season.
SMS traffic continued to decline as trend shifting toward messaging application.
PT Indosat Tbk – 9M 2016 Results
15
Operational expenses
as percentage of revenue
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
40.5%
42.1%
40.4%
41.4%
40.6%
Personnel
6.8%
7.6%
7.8%
7.3%
6.8%
Marketing
3.8%
6.8%
4.7%
4.9%
4.0%
General and Administration
2.9%
3.0%
3.7%
3.2%
3.5%
54.0%
59.6%
56.5%
56.8%
54.9%
29.8%
35.1%
32.6%
31.3%
29.9%
83.8%
94.7%
89.1%
88.1%
84.8%
Cost of Service (CoS)
Total Operating Expenses
Depreciation and Amortization
Total Expenses
•
•
Moderated operational expenses
Continued improvement in operational process
PT Indosat Tbk – 9M 2016 Results
16
EBITDA performance
EBITDA and EBITDA margin
in IDR billion
46.0%
40.4%
43.5%
43.2%
+11.2% QoQ
+6.9% YoY
3,205
2,906
2,961
4Q-15
3Q-15
EBITDA
1Q-16
45.2%
3,080
Quarterly EBITDA in 3Q-16 in line with
guidance.
3,425
2Q-16
3Q-16
EBITDA Margin
PT Indosat Tbk – 9M 2016 Results
17
Net profit
Net profit
in IDR billion
+15.6% YoY
+175.3% YoY
845
Improvement in operational level combine
with stable currency movement and low
USD debt resulted positive net profit.
-1,122
-1,330
9M-14*
9M-15
9M-16
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
PT Indosat Tbk – 9M 2016 Results
18
Balance sheet
Gross debt* and gross debt/EBITDA
in IDR billion
2.57
Net debt* and net debt/EBITDA
in IDR billion
2.33
2.45
2.11
1.90
1.71
-13.1% YoY
25,676
27,002
9M-14
9M-15
Gross Debt
23,476
9M-16
Gross Debt/EBITDA
-9.3% YoY
23,340
23,273
21,120
9M-14
9M-15
9M-16
Net Debt
Net Debt/EBITDA
* IDR 3.95tn, IDR 4.24tn and IDR 3.46tn of obligation under finance lease are included in 9M14, 9M15 and 9M16 respectively
•
•
Gearing level continuously improved
US debt portion has come down to 12% level
PT Indosat Tbk – 9M 2016 Results
19
Free cash flow & Capex
Free cash flow
Capex and Capex/Revenue
in %
in IDR billion
in IDR billion
37.6
29.7
26.8
2,699
1,307
1,161
1,869
25.2
24.4
2,117
1,910
2Q-16
3Q-16
1,663
877
463
3Q-15
-1,392
3Q-15*
4Q-15*
1Q-16
2Q-16
3Q-16
4Q-15
Capex
1Q-16
Capex/Revenue
* Reclassification from repayment of obligation under finance lease
•
•
FCF is steadily growing, supported by improved operating CF generation and
moderated capex.
Capex disbursement is in line with guidance toward end of year.
PT Indosat Tbk – 9M 2016 Results
20
Network & Data User
Number of BTS
+1.6% QoQ
+16.9% YoY
53,333
3,724
165
22,671
23,730
25,068
25,816
26,273
23,525
23,596
23,714
23,793
23,859
3Q-15
4G
4Q-15
3G
1Q-16
2Q-16
In million
+22.4% YoY
+12.3% QoQ
54,212
50,687
3,361
46,361
•
•
52,326
3,544
Data User
4,080
3Q-16
32.2
34.0
3Q-15
4Q-15
35.1
39.4
31.2
1Q-16
2Q-16
3Q-16
2G
4G coverage has reached 94 cities and counting
Data users are steadily growing with 1.3Gb/month usage on average.
PT Indosat Tbk – 9M 2016 Results
21
Management focus
& Key updates
Competition in Data today
•
RPMB*
in IDR / MB
33.1
34.2
30.9
32.8
•
27.6
17.7
•
2Q-15
3Q-15
4Q-15
1Q-16
2Q-16
3Q-16
* RPMB: Revenue Per Megabyte
PT Indosat Tbk – 9M 2016 Results
We observe a trend of decreasing data
yields in the market with Indosat data
yields also significantly decreasing over
the last two quarters.
The yield reduction reflects the
intensifying competition in the market with
major players offering significant bonus
quotas of data to secure market share.
Starting in 4Q-16 Indosat Ooredoo is
reducing the bonus quotas of data from
the currently high levels to more moderate
levels to effectively bring the data yields.
We hope that the other market players will
also realign behind this positive trend and
contribute to a healthier and more rational
market.
23
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 – 9M 2016 Results
24
2016 Guidance
9M-16
Actual
Consolidated Revenue Growth
EBITDA Margin
CAPEX
PT Indosat Tbk – 9M 2016 Results
FY 2016
Guidance
9.9%
In line with market
44.0%
Low to Mid 40’s
IDR 5.7 trillion
IDR 6.5 – 7.5 trillion
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 – 9M 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 12 August 2016, PEFINDO has affirmed its “idAAA” ratings for PT Indosat Tbk (ISAT)
and its Shelf Registration Bond I/2014-2016 including its proposed fourth phase issuance
of up to IDR3.2 trillion; 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 Shelf Registration
Sukuk Ijarah I/2014-2016, including its proposed fourth phase issuance of up to IDR288
billion; Sukuk Ijarah IV/2009 Serie B; and Sukuk Ijarah V/2012. The outlook for the
corporate rating is “stable”.
PT Indosat Tbk – 9M 2016 Results
29
Debt maturity profile*
In IDR trillion
5.32
3.62
2.06
2.08
1.82
0.95
0.92
0.08
2016
2017
0.26
0.26
2018
2019
IDR
1.10
0.81
0.12
2020
2021
2022
2023
0.36
2024
0.26
2025
2026
* Excluding obligation under capital lease
USD in IDR
PT Indosat Tbk – 9M 2016 Results
30
Spectrum overview
in Mhz
Number of BTS850 Mhz
900 Mhz
1800 Mhz
2100 Mhz
2 x 2.5
2 x 10.0
2 x 20.0
2 x 10.0
2020
2020
2020
2 x 4.5
2 x 7.5
2 x 22.5
2 x 15.0
15.0*
XL Axiata
-
2 x 7.5
2 x 22.5
2 x 15.0
-
Hutchison
-
-
2 x 10.0
2 x 10.0
-
Indosat
Valid until
Telkomsel
2019 & 2026
2300 Mhz
15.0*
2019
* Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku
PT Indosat Tbk – 9M 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 – 9M 2016 Results
32