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Transcript of PT Indosat Tbk · PT Telkom SK Telecom Chunghwa Telecom China Mobile Bharti Airtel Indosat EBITDA...
FY-07 Indosat Presentation page2
Six quarter consecutive
growth
Our brands are well positioned with the
clearest messages in the market
Three pronged strategies are againproven to improve the company performance
Three pronged strategies are againproven to improve the company performance
Indosat Key Messages for 2007
FY 2007 resultexceeds our full
guidance
Our three line of businesses, Cellular, Fixed data and FixedVoice are growing
• Asia Telecom Industry • Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 initiatives• Our awards
Content
FY-07 Indosat Presentation page4
Asia Telco benchmark: Revenue, EBITDA and Earning Growth
In 2007, Indosat financial growth is among “the highest “ in the region
Revenue Growth
Citigroup, Asia Connect, January 2008 & Company Data
0.2%
4.1%
5.7%
11.0%
17.0%
21.0%
22.0%
23.4%
59.4%
SingTel
Advanced Info
SK Telecom
StarHub
Chunghwa Telecom
PT Telkom
China Mobile
Indosat
Bharti Airtel
7.5%
13.0%
28.7%
29.0%
30.6%
44.8%
12.6%
16.0%
20.0%
23.0%
23.0%
23.6%
40.0%
-13.0%
-0.3%
-4.1%
-0.5%
-0.4%
StarHub
AdvancedInfo
SingTel
PT Telkom
SK Telecom
ChunghwaTelecom
ChinaMobile
Bharti Airtel
Indosat
EBITDA growthEarning growth
• Asia Telecom Industry• Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 initiatives• Our awards
Content
FY-07 Indosat Presentation page6
CDMA 13.5%14.0 million
Subs
GSM 86.5%87.9 Million Subs
Telkom (Flexi)45.8%
Mobile8 (Fren)22.7%
Bakrie (Esia)27.1%
Indosat (StarOne)4.5%
Telkomsel54.5%
Indosat27.9%
Exelcomindo17.6%
Maxis
Sampoerna
Smart
Company’s data and estimates
Hutchison : 2 Million subs
Ten player telecommunications industry
Indosat lives in the most crowded industry in the world, but GSM dominates the industry
FY-07 Indosat Presentation page7
IndonesianTelecommunication Market
Telecommunication Penetration
total telecom market: 110.6 mn(penetration 44.9%)
Source Merrill Lynch Global Wireless Matrix 3Q 2007; Company data, Analyst report and media info
Wireless Penetration 3Q 2007
GSM 80.8 Million Subscribers
GSM 87.9 mn 35.68%
Fixed Phone 8.7 mn 3.53%
CDMA 14.0 mn 5.68%
40%
82%
71%
57%
Malaysia Thailand* Philipines Indonesia
• Asia Telecom Industry • Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 initiatives• Our awards
Content
FY-07 Indosat Presentation page9
Indosat shareholding structure
ICL 44.9%
14.29%
ST Telemedia
AMH
75%
100%
40.8%
Qatar Telecom
25%
AMH combined ownership: 40.81%
PublicGovernment of
Indonesia
• Indonesian Government owns 14.29%, including Series A share• Indosat’s shares are majority owned by public investors (44.90%). They have been listed in JSX and
NYSE for more than 10 years.• ST Telemedia stake in Indosat remains 75% through its AMH. AMH through Indonesia
Communications Limited owns (40.81%)
• Asia Telecom Industry • Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 initiatives• Our awards
Content
FY-07 Indosat Presentation page12
Operating Revenues
EBITDA
Fixed Data (MIDI) Revenues
Net Income
Cellular subscribers
Fixed Voice Revenues
BTS (Network) expansion
Cellular Revenues
Rp. 16,489 mn
Rp. 8,715 mn
Rp. 2,169 mn
Rp. 2,042 mn
24.5 mn
Rp. 1,567 mn
10,760
Rp. 12,752 mn
35%
24%
14%
45%
47%
41%
49%
38%
achievement YoY
23.7 mn
10,721
guidance
EBITDA margin 57.7% 57%-59%
20%
25%
v
v
achieved
v
vv
(1) installed
Key highlights
FY-07 Indosat Presentation page13
Start of Turnaround
Six consecutive quarter revenue growth since second quarter 2006
Revenue growth ramp
2,8152,868
3,105
3,454
3,613
3,816
2,965
2,965
2,844
2,900
4,224
3,368
Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407
In R
p B
io
FY-07 Indosat Presentation page14
Net Income (Rp. bn)EBITDA (Rp. bn) and EBITDA margin
Robust Earnings
Earning perShare (EPS)
Indosat delivers “growth” in EBITDA, net income and EPS. Even in the intensified competition, we are able
to maintain EBITDA margin by 57.7%
8,715
7,052
6,017
6,732
57.70% 58.10% 57.60%57.78%
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2004 2005 2006 200740.00%
45.00%
50.00%
55.00%
60.00%
65.00%
EBITDA EBITDA Margin
1,633 1,6241,410
2,042
2004 2005 2006 2007
313.9 309.0
260.9
375.9
2004 2005 2006 2007
FY-07 Indosat Presentation page15
Gearing Ratio (Net Debt)
Strong balance sheet and sufficient flexibility to support
business growth
Interest Coverage
Debt to EBITDA
Strong balance sheet
624.3%585.4%
542.6%559.2%
531.4%
2003 2004 2005 2006 2007
48.90%41.60%
54.40% 56.70%52.20%
2003 2004 2005 2006 2007
190.7%
224.5%208.7%
262.7%
191.9%
2003 2004 2005 2006 2007
FY-07 Indosat Presentation page16
Market rewarded Indosat growth momentum
Growth momentum
starts
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• Asia Telecom Industry • Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 in initiatives• Our awards
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FY-07 Indosat Presentation page18
Cover all provinces; most regencies and around 60% districts
Cover almost 90% population
Subs per BTSIndosat: 2,424;Tsel: 2,289, XL: 1,386
MOU per BTS:Indosat: 119,929;Tsel: 113,454, XL:69,324
Performance based incentives
More than 100.000 outlets
Saving costs
Prudent Network rollout
Enhanced distribution
scheme
Continued product and
services innovation
The most clearestbrand positioning
Top brand awareness
Leading wireless broadband
StarOne rebound
Source: Macquarie 2008 and Company’s data
Proven three pronged cellular strategy
Company Data and Market Estimates
• Asia Telecom Industry • Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 initiatives• Our awards
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FY-07 Indosat Presentation page20
Grow fixed data services through
provision of Indosat Corporate
Solution
w i r e l e s s s e r v i c e s r e b o u n d
Lead in wireless broadband services
Accelerate expansion outside Java and maintain dominant position
in Java
Prepare for competition with the best capacity capability and product and offering
innovations
Key initiatives in 2008
Continue prudent network rollout policy
FY-07 Indosat Presentation page21
Grow total (net) revenue at least 18%;Grow cellular (net) revenue at least 20%
Increase subscriber (net add ) byaround 6 million subs
Maintain EBITDA margin (over net) between 57%-59%
Add CAPEX around USD 1.2 billion (85% will be dedicated for cellular expansion)
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Guidance 2008 for Investor
• Asia Telecom Industry • Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 initiatives• Our awards
Content
FY-07 Indosat Presentation page24
Corporate Governance and Social Responsibility
Indosat adopts the best corporate governance and undertakes high responsibility to the society
The company maintained, in all material control , effective internal control over financial reporting as of December 31, 2006, based on the COSO criteria. (Auditor opinion of 2006)
The Indonesia Institute for Corporate Governance (IICG) and SWA magazine acknowledge Indosat as the trusted publicly owned company for infrastructure, utility and transportation category in its Corporate Governance Perception Index (CGPI) award.
Our CSR programs
Ø EDUCATION
• Indosat Wireless Innovation Contest (IWIC)
• Teacher Development Program • Building schools• Scholarship• Financial Assistance
Ø INDONESIA HEALTH PROGRAMØ DISASTER RECOVERYØ JOINT PHILANTHROPY/CHARITY
PROGRAM