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1Q 2007 Results Page 1
PT Indosat Tbk
First Quarter 2007 Results
1Q 2007 Results Page 2
Key Highlights in 1Q 2007 (YoY)
Operating revenues (New Reporting Format) increased by 30.2%
IDD traffic increased by 25.8 %
EBITDA increased by 19.8%
Fixed Data (MIDI) revenues increased by 8.3%
Net Income increased by 26%
Cellular Subscribers growth by 39.1%
Operating revenues (Old Reporting Format) increased by 19.14%
1Q 2007 Results Page 3
Key Business Segment
Cellular Business Fixed Telecomm (Voice)Fixed Data (MIDI)
Indosat• International Leased Circuit• International Frame Relay/ATM• VSATs• Wholesale Internet Access
IDD 001 – Premium IDD
IDD 008 – Budget IDD
FlatCall 016 – Flat Rate IDD
StarOne – Fixed Wireless Access
GlobalSave – VoIP Service
• Domestic Leased Circuit• Domestic Frame Relay/ATM• VSATs• Corporate Solutions
• IP – Virtual Private Network• Dedicated and Dial Up Internets• Wi-Fi & HotSpots
77% of Total Revenues 10% of Total Revenues13% of Total Revenues
Matrix – Postpaid for high end users
Mentari –Prepaid for general users
IM3 – Prepaid for the young & trendy
3G – HSDPA services for wireless broadband
1Q 2007 Results Page 4
FLEXI51%
ESIA20%
Mobile 824%
Indosat FWA5%
ISAT27%
TSEL58%
XL15%
Wireless Market 1Q-07
Source: Company reports and estimates
New License Holders• Hutchison CP Tel• Maxis
CDMA12%
GSM88%
1Q 2007 Results Page 5
Cellular Subscribers Composition
ARPU (Rupiah)
48,50150,448
194,006217,469
55,50758,836
2006 2007
Prepaid Postpaid Blended
Subs composition as end of Mar-07
Postpaid5%
Prepaid95%
Cellular Subscribers
1,316
-1,556
16,705
14,512
9,754
2004 2005 2006 1Q06 1Q07
In thousands
1Q 2007 Results Page 6
Data Communications & Broadband
§ Fixed Data (MIDI) revenues increased 8.3% (YoY).
§ The main driver of growth is the increase from both corporate IP-related services such as IP-VPN, and Non IP based services such as high speed leased lines
§ Key Growth Performances in 1Q 2007 are:
• International High Speed Leased Circuit 180.1%
• Domestic High Speed Leased Circuit 48.6%
• IP-VPN 103.2%
Fixed Data (MIDI) Revenue
494456
1,902
1,694
1,484
2004 2005 2006 1Q06 1Q07
(In billion rupiah)
1Q 2007 Results Page 7
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2004 2005 2006 1Q06 1Q07Outgoing Incoming
Revenues Composition (1Q 2007)
§ Fixed (Voice) telecommunication contributed 10% to operating revenues mostly from IDD revenues. The revenues increased as the impact of the increase in revenue from International calls (IDD) and Fixed Wireless Access services.
Fixed (Voice) Telecommunication
FIXED (Voice)
10%
Fixed Data (MIDI)13%
Cellular77%
Trend in IDD Traffic(in thousands minutes))
78%
22% 16% 13%
84%
87% 84%
16%
87%
13%
1Q 2007 Results Page 8
Cellular Network Coverage
51
162
5,971
180BSC
50MSC
7,666BTS 2G & 3G1Q 2006 1Q 2007
Indosat NationwideCellular Coverage
Number of BTS 1Q 2007
Non Java; 34%
Java; 66%
1Q 2007 Results Page 9
Financial Performance (YoY) In billion Rupiah
Operating Revenues Rp 3,774.8 30.2% (New Reporting Format)
Operating Income Rp 1,041.8 22.8%
EBITDA Rp 2,018.7 19.8%
Other Income (Expenses) Rp (329.4) 13.2%
Net Income Rp 483.9 26.0%
Operating Revenues Rp 3,454.4 19.1% (Old Reporting Format)
1Q 2007 Results Page 10
Revenues and EBITDA growth
3,454
12,23911,590 10,430
2,900
2004 2005 2006 1Q06 1Q07
• Top Line 14.5% growth YoY• Maintain EBITDA Margin (new reporting format) within the range of 57 – 59%• Positive trend continue to show up since April 2006
(Rp billion)
Operating Revenues (Old reporting format)
EBITDA and EBITDA Margin (New)(Rp billion)
2,0181,685
7,0526,7326,017
53.5%
58.1%
57.6%58.1%
57.7%
2004 2005 2006 1Q06 1Q07
EBITDA and EBITDA Margin (Old)(Rp billion)
2,0181,685
7,0526,732
6,017
57.7%
58.1%
57.6%
58.1%
58.4%
2004 2005 2006 1Q06 1Q07
3,775
12,23911,590 10,430
2,900
2004 2005 2006 1Q06 1Q07
(Rp billion)
Operating Revenues (New reporting format)
1Q 2007 Results Page 11
Sound Balance Sheet
57,7%
58,1%
57,6%
58,1%
58,4%
2004 2005 2006 1Q06 1Q07
EBITDA Margin (Old Reporting Format) Interest Coverage
Debt to EBITDA Net Debt to Equity
191.9%224.5% 208.7% 213.5%
184.3%
2004 2005 2006 1Q06 1Q07
41.6%
54.4% 56.7% 53.8% 54.3%
2004 2005 2006 1Q06 1Q07
559.2% 542.6% 585.4%524.7%
686.8%
2004 2005 2006 1Q06 1Q07
Sufficient resources and flexibility to support plans and actions
1Q 2007 Results Page 12
Public
Listed on the JSX, SSX and NYSE
Note:(1) Per 31 December 2006
Republic of Indonesia
40.81% 44.90% 14.29%
§ Indosat’s shares are majority owned by public investors (44.90%)
§ ST Telemedia through Indonesia Communications Limited owns (39.96%) and Indonesia Communications Pte Limited owns (0.85%)
§ Indonesian Government owns 14.29% including Series A share
Committed Shareholders
1Q 2007 Results Page 13
Key Initiatives in 1Q 2007
Continued innovative marketing and promotion initiatives by commencing “Mentari Seru”
Provided 7,666 BTS on air at the end of 1Q 2007
Improved distribution scheme and mechanism to support product availability and market expansion
1Q 2007 Results Page 14
Guidance for 2007
Total Revenue growth by 20%
Maintain current market share
Net Additional 5-6 million customers
Maintain EBITDA Margin (Old Reporting Format) within 57-59%
Capital Expenditures of at least USD 1 Billion
Fixed Data (MIDI) to grow by 15-20%
Deploy 3500-4000 BTS
1Q 2007 Results Page 15
Recent Development
Indosat gained approval from BAPEPAM to issue Indosat Bond V of Rp2.6 Trillion and Sukuk Ijarah II of Rp400 Billion in Indonesian Rupiah to support our aggressive network expansion. Indosat Bond V are divided by two series i.e, series A will mature in seven years and series B will mature in ten years. Indosat SukukIjarah II will mature in seven years.
Bond issuance of total Rp 3 Trillion
Marketing promotion to strengthen Mentari positioning. This initiative consist of competitive local call
Mentari Tariff Program
Indosat lauched 3.5G services in 16 cities which are Jakarta, Surabaya, Bandung, Yogyakarta, Medan, Balikpapan, Semarang, Denpasar, Batam, Makassar, Jepara, Kudus, Cepu, Salatiga, Magelang dan Cilacap. With Full HSDPA technology, data transfer can reach up to 3.6 Mbps or nine times faster than regular 3G.
Launched 3.5G services in 16
cities
1Q 2007 Results Page 16
Thank You