pt indosat tbk full year 2012 highlights › assets › upload › pdf... · 2015-11-12 · indosat...

1 Indosat IR - New Template v23 1220.pptx

1

PT Indosat Tbk Full Year 2012 Highlights

2 Indosat IR - New Template v23 1220.pptx 2 Indosat IR - New Template v23 1220.pptx

2 Indosat Presentation FY 2012

2

Agenda

Financial and Operational Results

Management Focus and Key Updates

Supplemental Information


3

Financial and Operational Highlights



4

YoY Overview

Consolidated Revenue growth of 10.4% to IDR 22.72 trillion

EBITDA growth of 10.2% to IDR 10.57 trillion, EBITDA Margin fall of 0.1 ppt to 46.5%

Profit Attributable to Owners of The Company decreased to IDR 417.4 billion

Free Cash Flow increased 237.1% to IDR 4.3 trillion



5

QoQ Overview

Consolidated Revenue growth of 1.3% to IDR 6.21 trillion

EBITDA growth of 5.7% to IDR 2.93 trillion, EBITDA Margin growth 2.0 ppt to 47.1%

Profit Attributable to Owners of The Company decreased to a loss of IDR 1.21 trillion

Free Cash Flow decreased 112.1% to negative IDR 425.3 billion



6

Financial highlights

20,577 Operating Revenue

EBITDA

EBITDA Margin

Profit Attribution to Owners of the Company

22,719

FY-11 FY-12 YoY

10.4%

9,591 10,574 10.2%

46.6% 46.5% -0.1ppt

880 417 -52.5%

6,132 6,209

3Q-12 4Q-12 QoQ

1.3%

2,768 2,927 5.7%

45.1% 47.1% 2.0ppt

1,760 -1,211 -168.8%

In IDR billion

• Improvement in the top line and cost efficiency continue to drive positive EBITDA growth



636 739

672

699

730 833

7

Strong annual growth in cellular and fixed data businesses

Operating Revenue Breakdown

in IDR billion

3Q-12

+1.3% QoQ +18.8% YoY

4Q12

6,209 6,132

2Q-12 1Q-12 4Q-11 3Q-11

Cellular

Fixed Data

Fixed Voice

-4.9% / -15.7%

14.1% / 12.8%

-0.2% / 22.4%

• Improvement in commercial execution driving strong growth in cellular business in FY12 • E-KTP project and transponder contributed solid growth in fixed data

QoQ / YoY

315

5,307

314

5,228 4,977

5,400

278

254

225

264

4,447

4,080 4,357 4,175

5,112 5,124



8

Cellular revenue driven by strong SMS and data revenue development

Voice

SMS

Data

VAS

-2.2%

YoY

66.1%

10.8%

-65.6%

-1.3%

QoQ

0.9%

2.6%

2.4%

YoY negative revenue growth is in line with the market

Successful SMS campaigns, especially on IM3, driving positive growth

Data growth accelerating driven by increased smartphone penetration

VAS revenue impacted by uncertain market conditions after SMS Premium regulated in October 2011



9

Strong growth in customer base

4Q-12

+13.1% YoY +5.4% QoQ

3Q-12 2Q-12 1Q-12 4Q-11 3Q-11

Number of cellular customers

in million

3.0

4.5

-1.2

0.40.2

4.3

4Q-12 3Q-11 3Q-12 2Q-12 1Q-12 4Q-11

Net customer additions

in million

• Successful campaigns and distribution improvements key to increased net adds • Improving churn trend

51.5 51.7 52.1 50.9 55.5 58.5



10

ARPU trend improving on higher voice and SMS traffic

Voice traffic and MOU

+40.3% YoY

Q4-12

+9.1% QoQ

3Q-12 2Q-12 1Q-12 4Q-11 3Q-11

Voice Traffic

in billion minute in minute/subscriber

111115

989190

98

MOU

• 2012 commercial programs resulted in positive voice traffic & revenue elasticity

ARPU and ARPM

28.430.826.925.125.229.7

3Q-12 2Q-12 1Q-12 4Q-11 3Q-11

-7.6% QoQ +12.8% YoY

4Q-12

ARPU

in thousand IDR (ARPU) in IDR (ARPM)

119125130137152

166

ARPM

in IDR/minute

14.2 14.1 13.8 15.0 18.1 19.7



11

Improving SMS traffic trend; data usage picking up

Data usage

in TByte +11.6% QoQ +58.4 YoY

4Q-12 3Q-12 2Q-12 1Q-12 4Q-11 3Q-11

SMS delivered

in billion +14.6% YoY

4Q-12 3Q-12

+1.9% QoQ

2Q-12 1Q-12 4Q-11 3Q-11

• Data usage showing good improvement • Still solid growth in SMS traffic

2,520 2,842

3,240 3,423

4,032 4,500

66 63

58

67 71 73



12

Operational expenses

Cost of Service

Depreciation and Amortization

Personnel

Marketing

3Q-11 As percentage of revenue

General and Administration

Total Expenses

34.7%

4Q-11

31.6%

7.0%

5.8%

1.4%

80.5%

40.1%

1Q-12

33.3%

7.3%

4.9%

3.5%

89.0%

37.6%

2Q-12

34.2%

6.8%

4.9%

3.7%

87.3%

39.4%

3Q-12

32.0%

6.7%

4.7%

2.1%

84.9%

41.1%

4Q-12

38.1%

5.8%

5.6%

2.4%

93.0%

• Cost of service and deprecation impacted by SMS interconnect and change in network equipment useful life

38.5%

40.5%

6.0%

5.4%

2.9%

93.4%

Total Operating Expenses 48.9% 55.8% 53.0% 52.9% 54.9% 52.9%



10,574 144 9 10,727

2,681 2,346 2,338 2,541

2,768 2,927

13

Strong EBITDA growth

EBITDA and EBITDA margin

+5.7% QoQ +24.8% YoY

4Q-12 3Q-12 2Q-12 1Q-12 4Q-11 3Q-11

EBITDA

in IDR billion

45.1% 47.1% 47.0%

44.9%

50.5%

EBITDA Margin

Normalized EBITDA bridge

in IDR billion FY12

• Improvement in top line growth driving solid EBITDA growth

Tower

Transaction

Normalized SMS

Interconn.

Reported

47.1%



417

1,646

14

Normalized net profit* up on improved operational performance

Net profit

417

880

709

-52.6% YoY +24.1% YoY

FY-12 FY-11 FY-10

in IDR billion

Normalized net profit bridge

in IDR billion FY12

• Net profit impacted by tower sale & leaseback transaction, and change in useful life of network equipment

Normalized Change in

Useful Life

Tower

Transaction

Reported

* Net profit is Profit Attribution to Owners of the Company

Nett – FX

Loss

1,780

1,257

695

-723



2.422.552.57

24,845 24,498 25,554

2.05

2.322.35

22,770 22,274 21,637

15

Balance sheet strengthening

Gross debt* and gross debt/EBITDA Net debt* and net debt/EBITDA

FY-11 FY-10 FY-12

4.31% YoY

Gross Debt

in IDR billion

Gross Debt/EBITDA

FY-12 FY-10 FY-11

-2.86% YoY

Net Debt Net Debt/EBITDA

in IDR billion

• Better operational cash flow together with the tower proceeds enables decreased gearing

* IDR 446bn, IDR 826bn and IDR 3.3tn of obligation under capital lease are included in FY10, FY11 and FY12 respectively



16

Free Cash Flow trend improving

Free cash flow

in IDR billion

-425

3,527

1,137

83

-970

906

4Q-12 3Q-12 2Q-12 1Q-12 4Q-11 3Q-11

Capex and Capex/Revenue

1,832

1,3341,731

1,403

2,103

1,202

4Q-12 3Q-12 2Q-12 1Q-12 4Q-11 3Q-11

Capex

in IDR billion

29.4% 22.3%

32.1%

40.2%

22.7%

28.2%

Capex/Revenue

• FCF improving YoY, even when net tower proceed of IDR 2.8tn is excluded • FCF down in 4Q due to CAPEX and working capital seasonality

FY-12 FY-11 FY-10 FY-09 FY-08 FY-07

984

-3,773

-6,620

878 1,282

4,322



17

Network roll-out

Number of BTS

+1.3% QoQ +13.9% YoY

4Q-12

21,642

17,211

4,431

3Q-12

21,039

16,898

4,141

2Q-12

20,063

16,291

3,772

1Q-12

19,253

15,816

3,437

4Q-11

18,776

15,577

3,199

3Q-11

2G 3G

Revenue per BTS

In IDR million

FY 2012 FY 2011

XL

Indosat

Telkomsel

• Network modernization program (incl. 3G on 900MHz) started in Q412

17,344

4,596

21,930 1,143

781 798

1,036

468

753

*9M12 Figures

*


18

Management Focus and Key updates



19

Wrapping-up 2012

We improved commercial execution & created good revenue momentum

We strengthened data traffic & revenue growth

We secured 3G on 900MHZ and commenced modernization program We improved operational efficiencies further



20

2013 Guidance

FY 2012 Actual FY 2013 Guidance

Consolidated Revenue Growth 10.4% In line with Industry or better

EBITDA Margin 46.5% Mid 40’s

Cash CAPEX IDR 6.3 trillion IDR 8 trillion +10%



21

Thank You

Any further questions?

Upcoming events Indosat Capital Market Day 2013

Indosat Investor Relations Jl. Medan Merdeka Barat No. 21 Jakarta - 10110 Tel: +62 21 30442615 [email protected]



22

Disclaimer

• PT Indosat Tbk cautions investors that certain statements contained in this document state management's intentions, hopes, beliefs, expectations, or predictions of the future are forward-looking statements

• Management 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:

• Our ability to manage domestic and international growth and maintain a high level of customer service

• Future sales growth

• Market acceptance of our product and service offerings

• Our ability to secure adequate financing or equity capital to fund our operations

• Network expansion

• Performance of our network and equipment

• Our 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

• Please be advised that the information provided herein are merely issued to coincide with the release of Ooredoo (formerly known as Qtel Group - with the legal name: Qatar Telecom Q.S.C.) results for the year ended December 31, 2012, as our indirect majority shareholder that consolidates Indosat’s results in its financial statements. Subject to the completion of, including but not limited to the audit by the Public Accountant on the Company’s consolidated financial statements which are prepared in accordance with the Indonesian Financial Accounting Standards as well as the Company's consolidated financial statements which are prepared in accordance with the IFRS to comply with the requirements under the US law (since we are a Foreign Private Issuer) which to the certain extent might affect the determination of accounting treatment presented hereto, Indosat expects the filing and release of its official results for the year ended December 31, 2012 shall be done on April 30, 2013 at the latest (“Indosat’s Official Release”). Accordingly, the information provided herein may differ from what is contained in Indosat's Official Release.


23


24

Supplemental Information



25

Credit ratings maintained

On 30 April 2012, FitchRatings upgraded Indonesia-based Indosat Long-Term Foreign and Local-Currency Issuer Default Ratings (IDR) and Foreign Currency senior unsecured rating to ‘BBB’ from ‘BBB-‘. The Outlook is Stable.

On 3 July 2012, Standard and Poor’s (“S&P”) has upgraded Long-Term Credit Rating and the Indosat’s Guaranteed Notes Rating to ‘BB+’ from ‘BB‘. S&P also removed all the ratings from their CreditWatch. The Outlook is Stable to reflect S&P expectation that Indosat's operating performance will be stable. The agency also raised their long-term ASEAN regional rating scale on Indosat to ‘axBBB+’ from ‘axBBB-’.

On 12 June 2012, Pefindo assigned Indosat, all its IDR Bond and Sukuk Ijarah rating ‘idAA+’ and ‘idAA+(sy)‘ respectively. The Outlook is stable. The ratings reflect the strong parent support, Indosat’s stable market position, and its stable operating performance. However, the ratings are offset by Indosat aggressive capital structure and intense competition within the telecommunication industry.

On 8 February 2012, Moody’s affirmed Indosat Ba1 ratings and Stable outlook, follows

announcement that Indosat has agreed to sell 2,500 of its communications towers to PT Tower

Bersama Infrastructure Tbk.



26

Accounting Treatment on Sale and Lease Back Transaction

Before January 1, 2012, there was no requirement to separately evaluate lease agreement that contained land and building elements. As such, the assessment was performed on a combined basis.

Starting January 1, 2012, based on PSAK 30 (Revised 2011), when a lease includes both land and building elements, an entity should assess the classification of each element separately whether as a finance or an operating lease.

Determining whether a lease transaction is a finance lease or an operating lease is a complex issue and requires substantial judgment as to whether the lease agreement transfer substantially all the risks and rewards of ownership to or from the Group.

In sale and leaseback transactions, the classification of the lease back arrangements as described above determines how the gain or loss on the sale transaction is recognized.



27

Impact of tower sale and lease back transaction on Financial Statement

Fair value adjustment of TBIG shares

Gain deferred (finance lease)

Net gain recognized

9M 2012

-69

2,187

in IDR billion

Gross gain recognized 2,256

• Accounting treatment for tower sale and lease back transaction is classified as finance lease

Differences

-1,342

-1,062

FY 2012

280

-1,411

1,125

2,256

2,083 -1,029 1,054

Initial cost and others -105 -71

Net gain recognized after initial cost and others

280

34

0

0



28


YTD Dec 12

4,742

723

4,019

Net impact FY 2012 in IDR billion


Assets

Liabilities

Equity

Differences

2,132

-1,057

3,183

YTD Sept 12

2,610

1,780

830



29


Income/Expense Related to Tower Transaction

Net Gain recognized

Income Statement

Balance Sheet

Assets

Liabilities

Equity

Net profit

-314

4,742

1,125

723

723

4,019

Net impact FY 2012 in IDR billion

Potential Revenue Loss -88




30

We are within our covenants

Net debt to equity*

Gross debt to equity*

Net debt to EBITDA*

Gross debt to EBITDA*

1.12

FY-12

1.32

2.05

2.42

Interest coverage 6.18

< 2.5x

> 3.0x

< 3.5x

1.24

1.36

2.35

2.57

4.65

FY-10

1.18

1.29

2.32

2.55

5.64

FY-11

* Including obligation under capital lease



31

Debt maturity profile

Debt maturity profile*

In IDR trillion

2.68

0.67 0.67 0.60

6.30 1.33

3.26

0.42 0.77 1.37

0

1.50 1.50

3.93 4.01

6.30

2019

1.70

0.20

2018

0.20

0.20

2017

0.38

2013 2020 2022

1.50

2016

1.76

0.59

2015

1.37

2014

1.09

IDR

USD in IDR

* Excluding obligation under capital lease



32

Spectrum overview for top 3 cellular operators

10.0

900 Mhz

7.5

7.5

Indosat

Telkomsel

XL Axiata

20.0

1800 Mhz

22.5

7.5

10.0

2100 Mhz

15.0

15.0

15.0

2300 Mhz

15.0

0.0

in Mhz

• Telkomsel and XL each acquire 5Mhz on the last auction

pt indosat tbk full year 2012 highlights › assets › upload › pdf... · 2015-11-12 · indosat...

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