9M2017 Indosat Ooredoo Final

9M 2017 Results

Consolidated Revenue increased 4.8%
from IDR 21,525 billion to IDR 22,566 billion

EBITDA increased 4.7% from IDR 9,466
billion to IDR 9,906 billion, EBITDA Margin
reached 43.9%
Profit Attributable to Owners of The Parent
increased from IDR 845 billion to IDR 1,090
billion
Free Cash Flow increased from IDR 2,647
billion to IDR 3,523 billion

PT Indosat Tbk. - 9M 2017 Results

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Consolidated Revenue decreased 4.7%
from IDR 7,823 billion to IDR 7,453 billion
EBITDA decreased 9.6% from IDR 3,574
billion to IDR 3,232 billion, EBITDA Margin
reached 43.4%
Profit Attributable to Owners of The Parent
decreased from IDR 610 billion to IDR 306
billion
Free Cash Flow decreased from IDR 1,464
billion to IDR 1,008 billion

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in IDR billion

Operating Revenue

21,525

22,566

4.8%

7,823

7,453

-4.7%

EBITDA

9,466


9,906

4.7%

3,574

3,232

-9.6%

EBITDA Margin

44.0%

43.9%

0.1ppt

45.7%


43.4%

-2.3ppt

845

1,090

29.0%

610

306

-49.9%

Profit Attributable to
Owners of the Parent




Operating performance YoY maintained

PT Indosat Tbk. - 9M 2017 Results

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in IDR billion
-4.7% QoQ

-1.7% YoY
7,583
238

7,823


7,660
266

7,290
241

1,060

1,044

1,190

6,301

6,204

6,051

6,529


3Q-16

4Q-16

1Q-17

2Q-17

Fixed Voice




234

Fixed Data

998

QoQ / YoY


7,453
217

-7.3% / -8.9%

1,085

+2.4% / +4.0%

6,151

-5.8% / -2.4%

3Q-17

Cellular

Fixed data segment delivered outstanding performance supported by B2B IT services
Soft cellular revenue QoQ due to seasonality impact both in 3Q16 and 2Q17.


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Voice

-4.7%

-1.7%

SMS

-17.2%

-16.5%


Data

38.7%

-0.7%

VAS

7.1%

-3.3%

- Data took the lead in driving cellular
revenue growth
- Legacy services continued to decline as
data usage is growing

Gaming and content usage grew in youth
segment.


PT Indosat Tbk. - 9M 2017 Results

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7

in million

in million

+18.8% YoY

81.6

85.7

95.6

+0.7% QoQ

96.4

97.0

10.0

4.0
1.1

3Q-16

4Q-16

1Q-17

2Q-17

3Q-17

3Q-16

4Q-16

PT Indosat Tbk. - 9M 2017 Results

1Q-17

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0.7

0.6

2Q-17

3Q-17

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8

in thousand IDR
(ARPU)

in IDR
(ARPM)

in billion minutes
(Voice Traffic)

in minute/subscriber
(MOU)

68

66
144
124

123

125

-14.9% YoY

57

131
-8.6% QoQ

-25.4% YoY

53

47

-20.8% QoQ

24.2

24.5

21.7

22.5

20.6

16.6

16.6

15.3

15.6

12.4

3Q-16

4Q-16

1Q-17

2Q-17

3Q-17

3Q-16

4Q-16

1Q-17

2Q-17

3Q-17

ARPU

ARPM

Voice Traffic

PT Indosat Tbk. - 9M 2017 Results

MOU

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9

in billion

in TByte
+100.8% YoY

+18.8% QoQ

-51.4% YoY

-25.5% QoQ

293,225
246,862
188,101

49

209,591

44
37

146,060

3Q-16




32
24

4Q-16

1Q-17

2Q-17

3Q-17

3Q-16

4Q-16

1Q-17

2Q-17

3Q-17

Data traffic grew double digit QoQ amid intensifying competition in data
SMS traffic continued to decline as trend shifting toward messaging application
PT Indosat Tbk. - 9M 2017 Results

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as percentage of revenue

40.6%

40.9%

42.6%

39.6%

41.2%

Personnel

6.8%

7.2%

8.2%

7.2%

7.6%

Marketing

4.0%

3.5%

3.6%

4.2%

4.7%

General and Administration

3.5%

4.0%

3.1%

3.2%

3.2%

54.9%

55.6%

57.5%

54.3%

56.6%

29.9%

29.4%

30.5%

28.2%

29.8%

84.8%

85.1%

88.0%

82.5%

86.4%

Cost of Service (CoS)

Total Operating Expenses
Depreciation and Amortization
Total Expenses

PT Indosat Tbk. - 9M 2017 Results

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in IDR billion
45.2%

in IDR billion
44.4%

45.7%
42.5%

-5.6% YoY
3,425

3Q-16
EBITDA

3,398

4Q-16

3,100

1Q-17

43.4%

-9.6% QoQ
3,574

+175.3% YoY

3,232

3Q-17
2Q-17
EBITDA Margin

845

1,090

9M-16

9M-17

-1,122

9M-15




+29.0% YoY

EBITDA margin inline with guidance.
Profitability maintained.

PT Indosat Tbk. - 9M 2017 Results

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in IDR billion

in IDR billion
2.45

2.11
1.71

1.90

1.43

1.55

27,002

-12.0% YoY
23,476

9M-15
Gross Debt

9M-16

-10.0% YoY

20,668

23,273

21,120

19,014

9M-17

9M-15

9M-16

9M-17

Gross Debt/EBITDA

Net Debt

Net Debt/EBITDA

* IDR 4.24tn, IDR 3.46tn and IDR 3.02tn of obligation under finance lease are included in 9M15, 9M16 and 9M17 respectively




Gearing level continuously improved
USD debt portion has come down to 3% level
PT Indosat Tbk. - 9M 2017 Results

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in IDR billion

in IDR billion

in %
47.2

15.1
1,307

1,051

1,464

1,008

3,616
8.5

1,147

622

13.8

10.5

1,078

785

2Q-17

3Q-17

-186

3Q-16

4Q-16

1Q-17

2Q-17

3Q-17

3Q-16

4Q-16

1Q-17

Capex (Spent)




Capex/Revenue

Capex rollout will accelerate in 4Q17
Capex guidance unchanged.
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+11.1% YoY

5,446

59,023
5,533

60,247
6,110

27,724

28,510

29,255

29,912

23,859

24,042

24,219

24,235

24,225

3Q-16

4Q-16

1Q-17

2Q-17

3Q-17

54,212
4,080

56,483

58,175

4,717

26,273

4G



+2.1% QoQ

3G

In million

+14.7% YoY

+10.0% QoQ

39.4

40.5

41.1

41.1

3Q-16

4Q-16

1Q-17

2Q-17

45.2

3Q-17

2G

4G coverage has reached 175 cities in Indonesia, 63 cities addition during 9M-17.

PT Indosat Tbk. - 9M 2017 Results

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Consolidated Revenue Growth
EBITDA Margin

CAPEX

9.0%

4.8%

In line with market

44.1%

43.9%

Low to Mid 40’s

IDR 7.3 trillion
(Cash out)

IDR 2.5 trillion
(Spent)

~ IDR 6 trillion
(Spent)

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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.
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.
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On 21 August 2017, PEFINDO has affirmed its “idAAA” rating for PT Indosat Tbk (ISAT)’s
Shelf Registered Bond I Phase IV Year 2016 Serie A of IDR1,075 billion and its “idAAA(sy)”
rating for ISAT’s Shelf Registered Sukuk Ijarah I Phase IV Year 2016 Serie A of IDR163 billion
that will mature on September 12, 2017.
On 12 May 2017, Moody's Investors Service has has upgraded to Baa3 from Ba1 the issuer
rating of Indosat Tbk. (P.T.) (Indosat Ooredoo). The outlook for the rating is stable. At the
same time, Moody's has withdrawn the company's Ba1 Corporate Family Rating. The
rating upgrade reflects the continued strengthening of Indosat Ooredoo's operational
metrics as well as the ongoing stabilization of its financial profile, including lower
leverage levels.
On 10 March 2017, Fitch Ratings has upgraded PT Indosat Tbk's (Indosat Ooredoo) LongTerm Foreign-Currency Issuer Default Rating (IDR) and foreigncurrency senior unsecured
debt rating to 'BBB+' from 'BBB' and simultaneously affirmed its LongTerm Local Currency
IDR at 'BBB+'. Fitch Ratings Indonesia has also affirmed the National LongTerm Rating at
'AAA(idn)'. The Outlook is Stable.
On January 17, 2017, S&P Global Ratings affirmed its 'BB+' long-term corporate credit
rating on PT Indosat Tbk. The outlook remains positive. At the same time, they affirmed
their 'axBBB+' long-term ASEAN regional scale rating on the Indonesia-based
telecommunications company.

PT Indosat Tbk. - 9M 2017 Results

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In IDR trillion
3.90

3.13
2.42

2.55

1.16

1.10

1.00

0.81
0.60

0.06

0.27

4Q17
2017

2018

2019

0.26

0.12

0.27

2020

2021

2022

2023

2024

2025

2026

2027

IDR

USD in IDR
* Excluding obligation under finance lease

PT Indosat Tbk. - 9M 2017 Results

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in Mhz

Number of BTS
Indosat

2 x 2.5

2 x 10.0

2 x 20.0

2020

2020

2020

2 x 4.5

2 x 7.5

2 x 22.5

2 x 15.0

30.0

XL Axiata

-

2 x 7.5

2 x 22.5

2 x 15.0

-

Hutchison

-

-

2 x 10.0

2 x 10.0

-

Valid until

Telkomsel

15.0*

2 x 10.0

2019

2019 & 2026

* Indosat/IM2: West Java exclude Bogor, Depok & Bekasi

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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

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