PT Telekomunikasi Indonesia, Tbk.

PT Telekomunikasi Indonesia, Tbk.
INVESTOR SUMMIT
& CAPITAL MARKET EXPO 2013
November 2013
Disclaimer
This document may contain forward-looking statement within the meaning of safe-harbor.
Actual results could differ materially from projections, estimations or expectations. These
may involve risk and uncertainty, 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.
1
C O N T E N T
01
02
03
04
05
Telkom in Brief
9M13 Result
Cellular Business
Fixedline Business
Company Outlook
2
01
Telkom in Brief
3
Board of Directors
President Director and Chief Executive Officer
Director of Finance & Chief Financial Officer
Director of IT Network and Solution & Chief Technology Officer
Director of Human Capital Management
Director of Enterprise & Business Service
Director of Wholesale & International Service
Director of Consumer Service
Director of Innovation & Strategic Portfolio
: Arief Yahya
: Honesti Basyir
: Rizkan Chandra
: Priyantono Rudito
: Muhammad Awaluddin
: Ririek Adriansyah
: Sukardi Silalahi
: Indra Utoyo
4
Current Ownership
Telkom Indonesia is listed at
Indonesia Stock Exchange (IDX),
New York Stock Exchange (NYSE),
London Stock Exchange (LSE) and
also Publicly Offering Without Listing
(POWL) in Japan.
Government
53, 1%
Public
46, 9%
Treasury Shares 3,7%
Total Shares (after Stock Split)
100.799.996.400 shares
Market Capitalization at IDX
Top 5
211,7Tn*
*) as of September 30, 2013
1:5 stock split done on August 28, 2013 to make the share more affordable in IDX
5
Business and Customer Portfolio
Since 2009 Telkom expanded its business portfolio into TIMES:
Telecommunication, Information, Media & Edutainment, and Service
Telecommunication
Information
Media & Edutainment
POTS
Premise Integration Services
Media : Pay TV & FTA
FWA
Content / Portal
Mobile / Cellular
VA, Managed App &
Performance/ITO
International Services
E-Payment
Broadband
ITeS (BPO, KPO)
Network Services
Service
Tower
Retail
Wholesale
Personal
Consumer/Home
SME
Enterprise
OLO ( Other Local Operators )
International
6
Telkom and Subsidiaries
Consolidated
Unconsolidated
As of Sept 2013, Telkom has 9 consolidated subsidiaries
7
Indonesia Telecommunication Industry
With 10 operators, Indonesian telecommunication industry is very competitive
Prabayar
Pasca
Bayar
9M-2013 Subscriber Market Share
Penetration (SIM Card)
•Total Cell Subs >315 mn
•Total BIG 3 Subs: 239.8 mn
TSEL
127.9 mn
40%
ISAT
54.2M
53.8 mn
XL
17%
17%
56.5M
58.1 mn
18%
18%
Telkom Flexi
8
Telkom Customers
Telkom is dominating fixed line and cellular market…
>171 Million
9
02 9M13 Results
10
Highlights
Well maintained strong financial results
Consol Revenue grew 8.2% YoY to Rp61.5tn
Tsel Revenue grew by 10.4% YoY to Rp44.0tn
Telkom unconsol improve the positive growth at 1.2% YoY
Gaining remarkable subscribers growth
Broadband users grew 41.8% YoY to more than 22.5mn.
Cellular subscribers grew 5.3% YoY to 127.9mn
Telkomsel continues the leadership in network quality and coverage
Total BTS 65,653 units, a 28.7% YoY growth
3G BTS 23,443 units, a 74.8% YoY growth.
New BTS 9M13 11,356 units, a 35.5% YoY growth, average >1,000
BTS/month.
Telkom recorded a sound operational and financial results in 9M13…
11
Data Services
4.8
Users (Mn)
Revenues (Rp Tn)
▲ 36.5%
Mobile
Data
Speedy
7.6
▲ 10.5%
▲ 35.8%
2.9
Fixed Bband
2.1
Mobile Data
50.6
55.3
9M12
9M13
5.5
▲ 7.3%
3.2
3.4
▲ 9.4%
9M12
Data services, especially mobile data, is being the growth driver…
9M13
12
Revenues YoY (Rp Tn)
Tn)
9M12
▲ 8.2%
9M13
0.2
0.2
9.2
61.5
22.6
23.7
8.1
9M13
TOTAL
13.4
Data Comm, Internet, IT
SMS
VoIP & e-Business
7.6
3.1
9M12
9.7
23.3
20.1
56.9
10.7
3.6
Cellular voice Data, Internet, & Fixed line voice Interconnection
IT
0.9
0.9
Network
2.0
2.4
Other
Note: “Other” among others consists of CPE, Pay TV, Leased
Revenue, Directory Assistance, USO and Modem Sales
Cellular voice, SMS and data services are the biggest contributor of revenue…
13
Expenses YoY (Rp Tn)
Tn)
▲ 7.0%
14.1
12.8
9M12
40.2
10.6
11.1
9M13
7.0
6.3
3.4
37.6
3.6
2.2
2.1
2.2
2.4
0.1
0.0
O&M
9M12
D&A
Personnel
Interconnection
Marketing
G&A
Other
9M13
TOTAL
Note: “Other” consist of (gain)on forex – net, Other Income & Expense – net.
Expense grew lower than the revenue growth…
14
Capital Expenditure (Rp Tn)
Tn)
9M13, Total CAPEX Rp12.0 Tn or 13.3% over Revenue
2.6
6.8
2.6
Other
Subsidiaries
Backbone & Access
Infrastructure
Tower, IT, Media, Interna
tional Expansion
Radio access network
As we are still expanding our broadband infrastructure, Capex spending will be 20-25% of revenue…
15
03
Cellular Business
16
9M 2013 Continue double digit growth in financial performance
YoY Performance
REVENUE
In IDR Tn
Digital
Business
Legacy
10%
39.9
6.2 36%
EBITDA
In IDR Tn
44.0
NET INCOME
25.2
22.7
8.4
6%
9M13
CUSTOMER BASE
In Million
2%
9M13
Margin
57%
57%
DATA USER
In Million
9M12
9M13
Margin
BTS NEWROLL OUT
9%
9M13
9M12
3.9
9M13
BTS ON AIR
29%
11.4
8.4
9M12
9M13
In Thousand
35%
55
4.5
9M12
9M12
In Thousand
51
5%
30%
29%
128
121
6.8
6.9
12%
35.6
9M12
9M12
13.1
11.7
11%
33.7
CAPEX
In IDR Tn
In IDR Tn
3G
3G
105%
8.0
-25%
3.3 2G
9M13
2G
65.7
51.0
13.4
75%
23.4
37.6
12%
42.2 2G
9M12
9M13
Strong performance of cellular business in the middle of tight competition…
Source: 3Q 2013 Management Report Telkomsel
3G
17
Cellular BTS
Telkomsel is continuously expanding its coverage and capacity.
Until end of September, 11,356 new BTS deployed
KALIMANTAN 9%
SUMATERA 31%
6.2K BTS
SULAWESI & PAPUA 12%
8.0K BTS
20.0K BTS
JAVA 42%
BALI & NUSRA 6%
27.7K BTS
3.8K BTS
Java
42%
19
Non Java
58%
18
Key Strategic Focus
Legacy Business
Continue exploit voice and SMS through
- Enhanced micro-cluster based pricing
- Segmentation focus on Youth Segment
- Improve loyalty program
Mobile
Broadband
Business
Strengthening mobile broadband on
- Data education
- Push smartphone growth
- Broadband Network Quality in big city
Digital Services
Trigger Digital Services on
- Enterprise solution (M2M)
- Mobile Advertising & Mobile Payment
- Aggressive in content and application
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04
Fixedline Business
20
Roadmap: Indonesia Digital Network 2015
IDN
Indonesia Digital Network
• High Speed Optical Access
Network
• 15 million Home pass
• 1 million WiFi
High Speed Broadband Access through Optical Fiber Network & Wifi
Id-Ring
• IP and Optical Backbone Network
• 30 Tera Router Nodes
• 75,000 km national & regional
backbone network
IP-based and Optical Backbone Network
Id-Con
• Convergence Service Platform
• Multi Services
• Multi Screen
Integrated Next Generation Network for Multi Services & Multi Screen
We expect by end of 2015, 30% of Indonesia household are connected to our broadband services…
21
05
Company Outlook
22
2013 Company Outlooks
Continue to Deliver Value to Shareholders
Revenue Growth
In line with or better than the market for
both TLKM Consolidated and Telkomsel
EBITDA Margin
Stable to slight decline for TLKM
Consolidated and stable for Telkomsel
Capex
Group (Consolidated): 20-25% over Revenue
Allocation:
Telkomsel: 60%
TLKM (Unconsol) & Others: 40%
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