TLKM Corporate Presentation 1Q17
Corporate Presentation
1Q17 Results
PT Telkom Indonesia (Persero) Tbk
May 2017
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
1Q17 Financial & Operational Results
Company Guidance 2017
Telkom and Subsidiaries
Note:
T : Telecommunication
IME : Information, Media & Edutainment
4
Telkom Group Portfolios
6 product portfolios with 5 Customer Facing Units (CFU)
Mobile
n
n
6
Mobile Legacy
Mobile
Broadbandt
n
Wholesale Interconnection
International
Businest
n
n
1
Mobile
Services
3
1
Fixed
Services
Enterprise
Digital
6
n
n
5
Consumer
Digital
Others
4
Interconnect’
& Int’l Traffic
ICT Platform
n Enterprise
Connectivity
n IT Services
n Data Center and
Cloud
n BPO
n Devices/Hardware
I
ME
2
Network
Infrastructure
Smart Enablers
n Payments
n Digital Advertising
n Big Data & Other
Smart Enablers
n
e-Commerce
Video/TV
Mobile Digital (e.g., Games, Music)
n
Property
CFU
Satellites
Towerst
T
Product
Portfolios
5
Fixed Voice
Fixed
Broadbandt
n
n
n
5
Customer
Facing Units
Digital
Services
CFU
2
Enterprise
CFU
3
Consumer
CFU
4
Wholesale/
International
CFU
5
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
Rp445.5 Tn (USD32.8 Bn)*
*as of April 21, 2017
6
Board of Directors
Telkom
PRESIDENT DIRECTOR
Director of FInance
Director of HCM
Director of WINS
ALEX J. SINAGA
HARRY M. ZEN
HERDI R. HARMAN
ABDUS SOMAD ARIEF
Director of EBIS
Director of Consumer
Director of NITS
Director of DSP
DIAN RACHMAWAN
MAS’UD KHAMID
ZULHEFI ABIDIN
DAVID BANGUN
CEO Telkomsel
Director
Director
RIRIEK ADRIANSYAH
HERI SUPRIADI
EDWARD YING SIEW HENG
Telkomsel
Director
Director
Director
SUKARDI SILALAHI
PRIYANTONO RUDITO
MONTGOMERY HONG
Director
ALISTAIR D JOHNSTON
7
TELKOM Introduction
1Q17 Financial & Operational Results
Company Guidance 2017
1Q17 Performance Highlights
Telkom Indonesia delivered remarkable results in 1Q17, posting triple
double-digit growth in Revenue, EBITDA, and Net Income
of 12.6%, 14.7%,and 45.8% YoY respectively.
Data, Internet & IT Services sharply increased by 25.4% YoY.
The segment contributed 41.6% to total revenue.
Telkomsel recorded another triple double-digit with Revenue grew by
10.4%, EBITDA 13.0%, and Net Income 17.8% respectively.
Telkomsel installed 7,060 new BTSs, all of which are 3G/4G BTSs to
enhance mobile broadband experience.
9
Strong EBITDA & Net Income Growth
with Healthy Margins
EBITDA YoY
(Rp Trilion)
Net Income YoY
(Rp Trilion)
Net Income
Margin
EBITDA Margin
ì45.8%
ì14.7%
10
8
Strong Revenue Growth, Driven by
Data Business
Revenue YoY (Rp Trillion)
12,9 13,0
12,9
10,3
ì12.6%
41.6%
contribution to total
revenue (vs 37.4%
in 1Q16)
1,9
2,0
1,9
1,1
Cellular Voice
and SMS
Data, Internet
& IT Services
Fixed Line
Voice
ì 0.9%
ì 25.4%
î 4.1%
1,3
Interconnection
ì 17.4%
1Q16
1,3
Network &
Other Telco
Services
1Q17
ì 48.2%
ì12.6%
Note: SMS included SMS Banking and SMS advertising
1Q16
1Q17
11
Relatively Low Growth in Expenses
Expenses YoY (Rp Trillion)
8,3
7,7
4,4
4,8
3,0 3,0
0,8 0,7
0,8
1,0
1,2
0,7
0,7
-0,5
O&M
Personnel
Interconnection Marketing
G&A
ì 8.5%
î 0.7%
î 7.3%
ì 74.9% ì 8.4%
ì3.1%
ì 31.0%
D&A
1Q16
Others-net*
î 167.1%
1Q17
*Others-net included Forex loss
12
Telkomsel: Performance Highlights
Maintained Strong Performance Momentum during 1Q17
YEAR-ON-YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
+10%
22.3
20.2
Digital
Business
6.9
23%
NET INCOME
In Trillion
7.7
6.5
13%
4%
13.3
13.9
1Q16
1Q17
1Q16
23%
In Trillion
58%
1Q17
TOTAL ASSET
93.9
92.9
1Q16
1Q17
1Q17
Margin
Margin
1Q16
2.8
2.3
18%
Legacy
CAPEX
PAID
13.2
11.7
8.4
In Trillion
In Trillion
32%
59%
CUSTOMER
In Million
35%
BTS ON AIR
In Thousand
136.1
169.4
153.6
110.5
10%
23%
-1%
1Q16
1Q17
1Q16
1Q17
1Q16
1Q17
13
Telkomsel: Performance Highlights
Continued to Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+23%
Broadband:
In PB
In Million
357.4
8.4
6.9
Digital
Services
Telkomsel
Flash
89.6
71.7
21%
Broadband
DATA TRAFFIC
DATA USER
7.6
165.9
25%
6.3
115%
35%
0.6
0.8
1Q16
1Q17
1Q16
Digital Services:
1Q17
- Digital Lifestyle
- Digital Banking & Advertising
- Mobile Financial Services
- Enterprise Digital Services
3G & 4G BTS
ON AIR
In Thousand
84
65
1Q17
164%
86.3
11.1
4G
61.4
4.2
3G
75.2
57.2 31%
30%
1Q16
1Q16
1Q17
3G/4G CAPABLE
DEVICE
In Million
BlackBerry
1Q16
1Q17
14
Excellent Operational Results
Telkomsel Operational
n
3G/4G-capable device users: 83.8 mn
(+29.9% YoY). 22 Mn has enjoyed 4G.
n
Mobile data payload jumped 115.5%
YoY to 366.0 TB.
n
Added 7,060 new BTSs (all are 3G/4G).
Total BTS 136K (63% 3G/4G).
n
n
4G LTE Service: 239 cities across
Indonesia, 11,130 BTS
Total customers: 169.4 mn, increased
10.3% YoY.
TELKOM Operational
n
IndiHome subs reached 1.78 Mn increased
31.7% YoY
n
More content, added HOOQ video
streaming platform.
n
ARPU in 1Q17 Rp350K (vs Rp341K in 4Q16)
n
Pursuing new revenue stream from
advertising
n
Fixed broadband users (incl. non-IndiHome)
increased 4.8% YoY to 4.4 Mn
15
Satellite
After successfully launched on 15
February 2017, Telkom 3S
Satellite was officially
operated. The satellite is
managed by Telkom Satellite Main
Control Station in Cibinong
Indonesia starting 17 April 2017.
Telkom-4 Satellite is planned to
be launched in 3Q18.
It will carry 48 C-Band and 12
extended C-Band transponders
and cover Southeast Asia and
South Asia region.
Currently, the progress of this
project is around 53%.
16
Recent Development
70% Dividend Payout
AGMS on April 21, 2017 approved total 70% of dividend
payout, consists of 60% cash dividend or
Rp11,611,211,188,567.60 (inclusive of interim dividend) and
10% special dividend or Rp1,935,200,213,724.32, represents
total dividend per share of Rp136.7465.
Payment date is on 26 May 2017.
17
Recent Development
Change in Board of Directors and Board of Commissioners
AGMS on April 21, 2017 approved new composition of BoD & BoC:
Board of Commisioners
Board of Directors
President Director
: Alex J. Sinaga
President Commissioner
:
Hendri Saparini
Director of Finance
: Harry M. Zen
Commissioner
:
Hadiyanto
Director of Consumers Service : Mas’ud Khamid
Commissioner
:
Devy W. Suradji
Director of Human Capital
Management
: Herdy R. Harman
Commissioner
:
Rinaldi Firmansyah
Independent Commissioner
:
Director of Network & IT
Solution
: Zulhelfi Abidin
Dolfie Othniel Fredric
Palit
Independent Commissioner
:
Director of Digital & Strategic
Portfolio
: David Bangun
Margiyono
Darsasumarja
Independent Commissioner
:
Director of Wholesale &
International Service
: Abdus Somad Arief
Pamiyati Pamela
Johanna Waluyo
Independent Commissioner
:
Cahyana Ahmadjayadi
Director of Enterprise &
Business Service
: Dian Rachmawan
18
TELKOM in Introduction
1Q17 Operational & Financial Results
Company Guidance 2017
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 and lower
revenue portion from
legacy (voice and SMS
services)
CAPEX
Around 23%-25% of
revenue with focus on
broadband infrastructures,
both mobile and fixed line
MAIN PROGRAM
Customer Experience
Digital Business
Inorganic
Leading Digital
Capability to Provide
Excellent Customer
Experience
Champion of Digital
inHome, Personal,
Enterprise and
Wholesale Services
Smart Inorganic
Growth
20
1Q17 Results
PT Telkom Indonesia (Persero) Tbk
May 2017
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
1Q17 Financial & Operational Results
Company Guidance 2017
Telkom and Subsidiaries
Note:
T : Telecommunication
IME : Information, Media & Edutainment
4
Telkom Group Portfolios
6 product portfolios with 5 Customer Facing Units (CFU)
Mobile
n
n
6
Mobile Legacy
Mobile
Broadbandt
n
Wholesale Interconnection
International
Businest
n
n
1
Mobile
Services
3
1
Fixed
Services
Enterprise
Digital
6
n
n
5
Consumer
Digital
Others
4
Interconnect’
& Int’l Traffic
ICT Platform
n Enterprise
Connectivity
n IT Services
n Data Center and
Cloud
n BPO
n Devices/Hardware
I
ME
2
Network
Infrastructure
Smart Enablers
n Payments
n Digital Advertising
n Big Data & Other
Smart Enablers
n
e-Commerce
Video/TV
Mobile Digital (e.g., Games, Music)
n
Property
CFU
Satellites
Towerst
T
Product
Portfolios
5
Fixed Voice
Fixed
Broadbandt
n
n
n
5
Customer
Facing Units
Digital
Services
CFU
2
Enterprise
CFU
3
Consumer
CFU
4
Wholesale/
International
CFU
5
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
Rp445.5 Tn (USD32.8 Bn)*
*as of April 21, 2017
6
Board of Directors
Telkom
PRESIDENT DIRECTOR
Director of FInance
Director of HCM
Director of WINS
ALEX J. SINAGA
HARRY M. ZEN
HERDI R. HARMAN
ABDUS SOMAD ARIEF
Director of EBIS
Director of Consumer
Director of NITS
Director of DSP
DIAN RACHMAWAN
MAS’UD KHAMID
ZULHEFI ABIDIN
DAVID BANGUN
CEO Telkomsel
Director
Director
RIRIEK ADRIANSYAH
HERI SUPRIADI
EDWARD YING SIEW HENG
Telkomsel
Director
Director
Director
SUKARDI SILALAHI
PRIYANTONO RUDITO
MONTGOMERY HONG
Director
ALISTAIR D JOHNSTON
7
TELKOM Introduction
1Q17 Financial & Operational Results
Company Guidance 2017
1Q17 Performance Highlights
Telkom Indonesia delivered remarkable results in 1Q17, posting triple
double-digit growth in Revenue, EBITDA, and Net Income
of 12.6%, 14.7%,and 45.8% YoY respectively.
Data, Internet & IT Services sharply increased by 25.4% YoY.
The segment contributed 41.6% to total revenue.
Telkomsel recorded another triple double-digit with Revenue grew by
10.4%, EBITDA 13.0%, and Net Income 17.8% respectively.
Telkomsel installed 7,060 new BTSs, all of which are 3G/4G BTSs to
enhance mobile broadband experience.
9
Strong EBITDA & Net Income Growth
with Healthy Margins
EBITDA YoY
(Rp Trilion)
Net Income YoY
(Rp Trilion)
Net Income
Margin
EBITDA Margin
ì45.8%
ì14.7%
10
8
Strong Revenue Growth, Driven by
Data Business
Revenue YoY (Rp Trillion)
12,9 13,0
12,9
10,3
ì12.6%
41.6%
contribution to total
revenue (vs 37.4%
in 1Q16)
1,9
2,0
1,9
1,1
Cellular Voice
and SMS
Data, Internet
& IT Services
Fixed Line
Voice
ì 0.9%
ì 25.4%
î 4.1%
1,3
Interconnection
ì 17.4%
1Q16
1,3
Network &
Other Telco
Services
1Q17
ì 48.2%
ì12.6%
Note: SMS included SMS Banking and SMS advertising
1Q16
1Q17
11
Relatively Low Growth in Expenses
Expenses YoY (Rp Trillion)
8,3
7,7
4,4
4,8
3,0 3,0
0,8 0,7
0,8
1,0
1,2
0,7
0,7
-0,5
O&M
Personnel
Interconnection Marketing
G&A
ì 8.5%
î 0.7%
î 7.3%
ì 74.9% ì 8.4%
ì3.1%
ì 31.0%
D&A
1Q16
Others-net*
î 167.1%
1Q17
*Others-net included Forex loss
12
Telkomsel: Performance Highlights
Maintained Strong Performance Momentum during 1Q17
YEAR-ON-YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
+10%
22.3
20.2
Digital
Business
6.9
23%
NET INCOME
In Trillion
7.7
6.5
13%
4%
13.3
13.9
1Q16
1Q17
1Q16
23%
In Trillion
58%
1Q17
TOTAL ASSET
93.9
92.9
1Q16
1Q17
1Q17
Margin
Margin
1Q16
2.8
2.3
18%
Legacy
CAPEX
PAID
13.2
11.7
8.4
In Trillion
In Trillion
32%
59%
CUSTOMER
In Million
35%
BTS ON AIR
In Thousand
136.1
169.4
153.6
110.5
10%
23%
-1%
1Q16
1Q17
1Q16
1Q17
1Q16
1Q17
13
Telkomsel: Performance Highlights
Continued to Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+23%
Broadband:
In PB
In Million
357.4
8.4
6.9
Digital
Services
Telkomsel
Flash
89.6
71.7
21%
Broadband
DATA TRAFFIC
DATA USER
7.6
165.9
25%
6.3
115%
35%
0.6
0.8
1Q16
1Q17
1Q16
Digital Services:
1Q17
- Digital Lifestyle
- Digital Banking & Advertising
- Mobile Financial Services
- Enterprise Digital Services
3G & 4G BTS
ON AIR
In Thousand
84
65
1Q17
164%
86.3
11.1
4G
61.4
4.2
3G
75.2
57.2 31%
30%
1Q16
1Q16
1Q17
3G/4G CAPABLE
DEVICE
In Million
BlackBerry
1Q16
1Q17
14
Excellent Operational Results
Telkomsel Operational
n
3G/4G-capable device users: 83.8 mn
(+29.9% YoY). 22 Mn has enjoyed 4G.
n
Mobile data payload jumped 115.5%
YoY to 366.0 TB.
n
Added 7,060 new BTSs (all are 3G/4G).
Total BTS 136K (63% 3G/4G).
n
n
4G LTE Service: 239 cities across
Indonesia, 11,130 BTS
Total customers: 169.4 mn, increased
10.3% YoY.
TELKOM Operational
n
IndiHome subs reached 1.78 Mn increased
31.7% YoY
n
More content, added HOOQ video
streaming platform.
n
ARPU in 1Q17 Rp350K (vs Rp341K in 4Q16)
n
Pursuing new revenue stream from
advertising
n
Fixed broadband users (incl. non-IndiHome)
increased 4.8% YoY to 4.4 Mn
15
Satellite
After successfully launched on 15
February 2017, Telkom 3S
Satellite was officially
operated. The satellite is
managed by Telkom Satellite Main
Control Station in Cibinong
Indonesia starting 17 April 2017.
Telkom-4 Satellite is planned to
be launched in 3Q18.
It will carry 48 C-Band and 12
extended C-Band transponders
and cover Southeast Asia and
South Asia region.
Currently, the progress of this
project is around 53%.
16
Recent Development
70% Dividend Payout
AGMS on April 21, 2017 approved total 70% of dividend
payout, consists of 60% cash dividend or
Rp11,611,211,188,567.60 (inclusive of interim dividend) and
10% special dividend or Rp1,935,200,213,724.32, represents
total dividend per share of Rp136.7465.
Payment date is on 26 May 2017.
17
Recent Development
Change in Board of Directors and Board of Commissioners
AGMS on April 21, 2017 approved new composition of BoD & BoC:
Board of Commisioners
Board of Directors
President Director
: Alex J. Sinaga
President Commissioner
:
Hendri Saparini
Director of Finance
: Harry M. Zen
Commissioner
:
Hadiyanto
Director of Consumers Service : Mas’ud Khamid
Commissioner
:
Devy W. Suradji
Director of Human Capital
Management
: Herdy R. Harman
Commissioner
:
Rinaldi Firmansyah
Independent Commissioner
:
Director of Network & IT
Solution
: Zulhelfi Abidin
Dolfie Othniel Fredric
Palit
Independent Commissioner
:
Director of Digital & Strategic
Portfolio
: David Bangun
Margiyono
Darsasumarja
Independent Commissioner
:
Director of Wholesale &
International Service
: Abdus Somad Arief
Pamiyati Pamela
Johanna Waluyo
Independent Commissioner
:
Cahyana Ahmadjayadi
Director of Enterprise &
Business Service
: Dian Rachmawan
18
TELKOM in Introduction
1Q17 Operational & Financial Results
Company Guidance 2017
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 and lower
revenue portion from
legacy (voice and SMS
services)
CAPEX
Around 23%-25% of
revenue with focus on
broadband infrastructures,
both mobile and fixed line
MAIN PROGRAM
Customer Experience
Digital Business
Inorganic
Leading Digital
Capability to Provide
Excellent Customer
Experience
Champion of Digital
inHome, Personal,
Enterprise and
Wholesale Services
Smart Inorganic
Growth
20