TLKM PPT 1Q15 Results Rev
PT Telkom Indonesia (Persero) Tbk
The First Quarter 2015 (1Q15) Results
The First Quarter 2015
May 7, 2015
Disclaimer
This
hi document
d
may contain
i forward‐looking
f
d l ki statements within
i hi the
h meaning
i off safe‐
f
harbor. Actual results could differ materially from projections, estimations or
expectations. These may involve risks and uncertainties, and may cause actual results
and
d development
d l
t to
t differ
diff substantially
b t ti ll from
f
th
those
expressed
d or implied
i li d in
i the
th
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
Content
1. Telkom in Brief
2. 1Q15 Financial and Operational Results
3. Company Guidance 2015
3
Telkom in Brief
Telkom in Brief
4
Telkom Group Portfolios
p
Well diversified business portfolio: 9 Product Portfolios and 6 Customer Portfolios
10
ME
Digital Life
Digital Home
7
I
• Managed Apps & SI
• BPM
• Premise Integration
• E‐Payment
• DataCenter & Cloud
• M2M
Platform
Services
Product
Portfolio
T
• Fixed Phone
• Fixed Broadband
• WiFi
Fixed
Services
8
1
Big
Data
5
Mobile
Services
2
11
E-Health
E-Tourism
E-Transportation
E-Gov
E
Gov
Ecosystem
Solution
6
• Interconnection &
International Traffic
• Network Service
• Satellite
• Tower
• Full Mobility
• Limited
Mobility
2
9
•
•
•
•
Big Data
4
Digital Advertising
NW & Infra
Services
12
Customer
Portfolio
Se
ervices
1
13
14Government
15
16
3
5
Telkom and Subsidiaries
Mobile
Business
T
Multimedia
Business
Government
Public
52.6%
47.4%
IME
International
Business
T
Singapore
Hongkong
Timorleste
Australia
Macau
Arab Saudi
USA
Malaysia
New Zeland
Affiliation
Infrastructure
Business
T
Myanmar
Note :
T : Telecommunication
IME : Information, Media & Edutainment
6
Current Ownership
p
Government 52.6%
Public
Telkom Indonesia is listed at
Indonesia
Stock
Exchange
(Bloomberg: TLKM IJ) and New York
Stock Exchange (Bloomberg: TLK US)
47.4%
Treasury Shares 2.6%
y
Total Shares
Market Capitalization at IDX
100,799,996,400 shares
Rp291.3Tn*
*) as of March 31, 2015
7
1Q15 Financial
and Operational Results
p
8
1Q15 Performance
Q
Highlights
g g
Continued strong revenue growth with healthy margins
Consolidated Revenue grew by 11.1% Year‐on‐Year (YoY) with EBITDA and Net
Income grew by 13.9% and 6.4% YoY, respectively
Telkomsel Revenue grew by 12.1%, EBITDA by 9.0%, and Net Income by 11.3% YoY
Data, Internet, and IT Services (exclude SMS) recorded the highest revenue
growth, with 27.6% increase from 1Q14.
Telkomsel’s digital business grew by 37.4%, with data traffic jumped 110%.
Continued leadership in infrastructure
p
Telkomsel expands its 4G LTE network and services in key cities including
Jakarta, Bali, Bandung, Surabaya and Medan
Telkom continued strong operational and financial results in 1Q15
9
Strong Revenue Growth, Driven by
D t B i
Data Business
Revenue YoY (Rp Trillion)
▲ 11.1%
▲ 5.6%
8.0
8.5
▲ 27.6%
7.1
1Q14
1Q15
5.5
▲5.2%
23 6
23.6
21.3
3.4
3.3
▼ 6.4%
2.3
2.2
▼ 4.5%
1.2
1Q14
1Q15
TOTAL
Cellular voice
Data, Internet, &
IT (excl SMS)
SMS
Fixed line voice
1.1
Interconnection
▲ 47.6%
0.9
1.3
Network and
other telco service
Note: “Other” among others consists of CPE, Infrastructure Lease, Directory Assistance and USO.
10
Strongg EBITDA & Net Income Growth
EBITDA (Rp Tn)
(Rp Tn)
Net Income (Rp Tn)
Net Income (Rp
▲ 13.9%
▲ 6.4%
12.4
10.9
1Q14
1Q15
3.6
3.8
1Q14
1Q15
Flexi Impairment
R 870 B in 1Q15 vs
Rp870 Bn
i 1Q15
Rp30 Bn in 1Q14
11
Manageable Operating Expenses
g
p
g p
Operating Expenses YoY (Rp Trillion)
▲ 12.8%
▲ 20.2%
6.2
▲ 29.1%
5.1
5.1
3.9
3.9
14.3
1Q14
1Q15
16.2
▲ 0.7%
2.3
2.3
▼ 18.0%
1.3
1Q14
1Q15
O&M
D&A
Personnel
1.0
Interconnection
▲ 3.6%
0.9
G&A
1.0
▼ 1.1%
0.7
▼ 1,050.0%
0.7
Marketing
(0.02)
(0.2)
Other
TOTAL
12
Telkomsel: Continued Solid Financial and
O
Operational Performance
ti
lP f
YEAR‐ON‐YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
In Trillion
+12%
17.1
15.3
Digital
Business
34
3.4
37%
NET INCOME
In Trillion
In Trillion
CAPEX
PAID
9.2
8.5
4.6
4.9
4.4
11%
Legacy
11.9
5%
1Q‐14
12.5
1Q‐15
TOTAL ASSET
In Trillion
1Q‐14
1Q‐15
Margin
55%
54%
CUSTOMER
In Million
1Q‐14
8%
1Q‐15
1Q‐14
29%
28%
BTS ON AIR
BTS ROLL OUT
In Thousand
+15%
141.5
82 9
82.9
76.9
1Q‐15
1Q‐14
5.1
07
0.7
4.5
0.0
3.5
8%
1Q‐14
+22%
4G
10%
7%
1Q‐15
1Q‐15
Margin
In Thousand
132.7
28
2.8
26
2.6
9%
0.9
1Q‐14
3.9
-39%
74.3
74
3
0.0
40%
30.6
90.6
0.9
4G
42.7
3G
7%
47 0
47.0
2G
3G
43 8
43.8
0.6 2G
1Q‐15
1Q14
1Q15
13
Telkomsel: Continued Focus on Digital
B i
Business
Broadband:
YEAR‐ON‐YEAR ACHIEVEMENT
DIGITAL BUSINESS
DIGITAL
BUSINESS
REVENUE
DATA USER
In Trillion
+37%
89.6
4.6
31%
1Q‐14
2%
110%
0.4
1Q‐14
1Q‐15
In Thousand
43 7
43.7
28.2
4G
10%
3G
1Q‐15
3G & 4G BTS
3G
& 4G BTS
ON AIR
In Thousand
4.6
4
6
0.7
3.5
0.0
55%
1Q‐15
1Q‐14
1Q‐15
3G & 4G BTS
3G
& 4G BTS
ROLL OUT
3G/4G CAPABLE
3G/4G
CAPABLE
DEVICE
In Million
1Q‐14
•- Digital Lifestyle
•- Digital Advertising
•- Digital Payment & Mobile Banking
•- M2M
42.7
4.2
3.1
0.3
BlackBerry
Digital Services:
38%
Digital
Services
Telkomsel
Flash
63 9
63.9
63 0
63.0
3.4
Broadband
DATA TRAFFIC
In PB
In Million
3.5
3.9
1Q‐14
1Q‐15
43.6
0.9
4G
3G
30.6
0.0
30.6
1Q‐14
40% 42.7
1Q‐15
14
Telkomsel: Widest coverage
Population Coverage:
2G: ± 95% | 3G: ± 60%
Papua, Maluku,
Sulawesi, Kalimantan
l
l
CB portion: 22%
Sumatera
CB portion: 28%
Greater Jakarta &
West Java
CB portion: 24%
Java & Bali
CB portion: 26%
Flexi Spectrum in 800 Mhz to be utilized by Telkomsel
15
Completed Sulawesi‐Maluku‐Papua Cable
S t
(SMPCS) U til P
System (SMPCS) Until Papua
Kauditan‐Ambon‐
Sorong + branches
Sorong‐Waisai
Sorong‐
y p
Jayapura
Kendari‐Ambon
Ambon‐Fakfak +
branches
(Masohi, Bandaneira)
16
Company Guidance 2015
Company Guidance 2015
17
2015 Management Guidance
g
Revenue Growth
Revenue Growth
In line with or slightly above the market for TLKM and
Telkomsel, with focus on strengthening mobile broadband and
,
g
g
accellerated fixed broadband through triple play and FTTH
EBITDA Margin
EBITDA Margin
Slightly decline for TLKM and Telkomsel in line with
accellerated investment in digital business
Capex
Group (Consolidated): around 25% over Revenue
Mobile related: 60% ‐ 65%
Fixed broadband related: 20% ‐ 25%
Other business: 10%
Main Program
Mobile Business
1. Protect Legacy Business
2. Strengthen The Core
3. Trigger Digital Services
Maintain double digit growth
Grow digital business
Indonesia Digital Network
1. ID‐Ring
2. ID‐Access
3. ID‐Convergence
Turn‐around fixed line
Drive digital business
International Expansion
1. Follow the People
2. Follow the Network
3. Follow the Traffic & Money
Stretch & Expand int’l business
Strengthen footprint in regional
19
18
19
Jayalah
y
Indonesia !
Jayalah Telkom Indonesia !
Th k Y
Thank You
20
The First Quarter 2015 (1Q15) Results
The First Quarter 2015
May 7, 2015
Disclaimer
This
hi document
d
may contain
i forward‐looking
f
d l ki statements within
i hi the
h meaning
i off safe‐
f
harbor. Actual results could differ materially from projections, estimations or
expectations. These may involve risks and uncertainties, and may cause actual results
and
d development
d l
t to
t differ
diff substantially
b t ti ll from
f
th
those
expressed
d or implied
i li d in
i the
th
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
Content
1. Telkom in Brief
2. 1Q15 Financial and Operational Results
3. Company Guidance 2015
3
Telkom in Brief
Telkom in Brief
4
Telkom Group Portfolios
p
Well diversified business portfolio: 9 Product Portfolios and 6 Customer Portfolios
10
ME
Digital Life
Digital Home
7
I
• Managed Apps & SI
• BPM
• Premise Integration
• E‐Payment
• DataCenter & Cloud
• M2M
Platform
Services
Product
Portfolio
T
• Fixed Phone
• Fixed Broadband
• WiFi
Fixed
Services
8
1
Big
Data
5
Mobile
Services
2
11
E-Health
E-Tourism
E-Transportation
E-Gov
E
Gov
Ecosystem
Solution
6
• Interconnection &
International Traffic
• Network Service
• Satellite
• Tower
• Full Mobility
• Limited
Mobility
2
9
•
•
•
•
Big Data
4
Digital Advertising
NW & Infra
Services
12
Customer
Portfolio
Se
ervices
1
13
14Government
15
16
3
5
Telkom and Subsidiaries
Mobile
Business
T
Multimedia
Business
Government
Public
52.6%
47.4%
IME
International
Business
T
Singapore
Hongkong
Timorleste
Australia
Macau
Arab Saudi
USA
Malaysia
New Zeland
Affiliation
Infrastructure
Business
T
Myanmar
Note :
T : Telecommunication
IME : Information, Media & Edutainment
6
Current Ownership
p
Government 52.6%
Public
Telkom Indonesia is listed at
Indonesia
Stock
Exchange
(Bloomberg: TLKM IJ) and New York
Stock Exchange (Bloomberg: TLK US)
47.4%
Treasury Shares 2.6%
y
Total Shares
Market Capitalization at IDX
100,799,996,400 shares
Rp291.3Tn*
*) as of March 31, 2015
7
1Q15 Financial
and Operational Results
p
8
1Q15 Performance
Q
Highlights
g g
Continued strong revenue growth with healthy margins
Consolidated Revenue grew by 11.1% Year‐on‐Year (YoY) with EBITDA and Net
Income grew by 13.9% and 6.4% YoY, respectively
Telkomsel Revenue grew by 12.1%, EBITDA by 9.0%, and Net Income by 11.3% YoY
Data, Internet, and IT Services (exclude SMS) recorded the highest revenue
growth, with 27.6% increase from 1Q14.
Telkomsel’s digital business grew by 37.4%, with data traffic jumped 110%.
Continued leadership in infrastructure
p
Telkomsel expands its 4G LTE network and services in key cities including
Jakarta, Bali, Bandung, Surabaya and Medan
Telkom continued strong operational and financial results in 1Q15
9
Strong Revenue Growth, Driven by
D t B i
Data Business
Revenue YoY (Rp Trillion)
▲ 11.1%
▲ 5.6%
8.0
8.5
▲ 27.6%
7.1
1Q14
1Q15
5.5
▲5.2%
23 6
23.6
21.3
3.4
3.3
▼ 6.4%
2.3
2.2
▼ 4.5%
1.2
1Q14
1Q15
TOTAL
Cellular voice
Data, Internet, &
IT (excl SMS)
SMS
Fixed line voice
1.1
Interconnection
▲ 47.6%
0.9
1.3
Network and
other telco service
Note: “Other” among others consists of CPE, Infrastructure Lease, Directory Assistance and USO.
10
Strongg EBITDA & Net Income Growth
EBITDA (Rp Tn)
(Rp Tn)
Net Income (Rp Tn)
Net Income (Rp
▲ 13.9%
▲ 6.4%
12.4
10.9
1Q14
1Q15
3.6
3.8
1Q14
1Q15
Flexi Impairment
R 870 B in 1Q15 vs
Rp870 Bn
i 1Q15
Rp30 Bn in 1Q14
11
Manageable Operating Expenses
g
p
g p
Operating Expenses YoY (Rp Trillion)
▲ 12.8%
▲ 20.2%
6.2
▲ 29.1%
5.1
5.1
3.9
3.9
14.3
1Q14
1Q15
16.2
▲ 0.7%
2.3
2.3
▼ 18.0%
1.3
1Q14
1Q15
O&M
D&A
Personnel
1.0
Interconnection
▲ 3.6%
0.9
G&A
1.0
▼ 1.1%
0.7
▼ 1,050.0%
0.7
Marketing
(0.02)
(0.2)
Other
TOTAL
12
Telkomsel: Continued Solid Financial and
O
Operational Performance
ti
lP f
YEAR‐ON‐YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
In Trillion
+12%
17.1
15.3
Digital
Business
34
3.4
37%
NET INCOME
In Trillion
In Trillion
CAPEX
PAID
9.2
8.5
4.6
4.9
4.4
11%
Legacy
11.9
5%
1Q‐14
12.5
1Q‐15
TOTAL ASSET
In Trillion
1Q‐14
1Q‐15
Margin
55%
54%
CUSTOMER
In Million
1Q‐14
8%
1Q‐15
1Q‐14
29%
28%
BTS ON AIR
BTS ROLL OUT
In Thousand
+15%
141.5
82 9
82.9
76.9
1Q‐15
1Q‐14
5.1
07
0.7
4.5
0.0
3.5
8%
1Q‐14
+22%
4G
10%
7%
1Q‐15
1Q‐15
Margin
In Thousand
132.7
28
2.8
26
2.6
9%
0.9
1Q‐14
3.9
-39%
74.3
74
3
0.0
40%
30.6
90.6
0.9
4G
42.7
3G
7%
47 0
47.0
2G
3G
43 8
43.8
0.6 2G
1Q‐15
1Q14
1Q15
13
Telkomsel: Continued Focus on Digital
B i
Business
Broadband:
YEAR‐ON‐YEAR ACHIEVEMENT
DIGITAL BUSINESS
DIGITAL
BUSINESS
REVENUE
DATA USER
In Trillion
+37%
89.6
4.6
31%
1Q‐14
2%
110%
0.4
1Q‐14
1Q‐15
In Thousand
43 7
43.7
28.2
4G
10%
3G
1Q‐15
3G & 4G BTS
3G
& 4G BTS
ON AIR
In Thousand
4.6
4
6
0.7
3.5
0.0
55%
1Q‐15
1Q‐14
1Q‐15
3G & 4G BTS
3G
& 4G BTS
ROLL OUT
3G/4G CAPABLE
3G/4G
CAPABLE
DEVICE
In Million
1Q‐14
•- Digital Lifestyle
•- Digital Advertising
•- Digital Payment & Mobile Banking
•- M2M
42.7
4.2
3.1
0.3
BlackBerry
Digital Services:
38%
Digital
Services
Telkomsel
Flash
63 9
63.9
63 0
63.0
3.4
Broadband
DATA TRAFFIC
In PB
In Million
3.5
3.9
1Q‐14
1Q‐15
43.6
0.9
4G
3G
30.6
0.0
30.6
1Q‐14
40% 42.7
1Q‐15
14
Telkomsel: Widest coverage
Population Coverage:
2G: ± 95% | 3G: ± 60%
Papua, Maluku,
Sulawesi, Kalimantan
l
l
CB portion: 22%
Sumatera
CB portion: 28%
Greater Jakarta &
West Java
CB portion: 24%
Java & Bali
CB portion: 26%
Flexi Spectrum in 800 Mhz to be utilized by Telkomsel
15
Completed Sulawesi‐Maluku‐Papua Cable
S t
(SMPCS) U til P
System (SMPCS) Until Papua
Kauditan‐Ambon‐
Sorong + branches
Sorong‐Waisai
Sorong‐
y p
Jayapura
Kendari‐Ambon
Ambon‐Fakfak +
branches
(Masohi, Bandaneira)
16
Company Guidance 2015
Company Guidance 2015
17
2015 Management Guidance
g
Revenue Growth
Revenue Growth
In line with or slightly above the market for TLKM and
Telkomsel, with focus on strengthening mobile broadband and
,
g
g
accellerated fixed broadband through triple play and FTTH
EBITDA Margin
EBITDA Margin
Slightly decline for TLKM and Telkomsel in line with
accellerated investment in digital business
Capex
Group (Consolidated): around 25% over Revenue
Mobile related: 60% ‐ 65%
Fixed broadband related: 20% ‐ 25%
Other business: 10%
Main Program
Mobile Business
1. Protect Legacy Business
2. Strengthen The Core
3. Trigger Digital Services
Maintain double digit growth
Grow digital business
Indonesia Digital Network
1. ID‐Ring
2. ID‐Access
3. ID‐Convergence
Turn‐around fixed line
Drive digital business
International Expansion
1. Follow the People
2. Follow the Network
3. Follow the Traffic & Money
Stretch & Expand int’l business
Strengthen footprint in regional
19
18
19
Jayalah
y
Indonesia !
Jayalah Telkom Indonesia !
Th k Y
Thank You
20