pt indosat tbk 1h 2015 results - assets.indosatooredoo.com · * restated due to implementation of...
TRANSCRIPT
PT Indosat Tbk
1H 2015 Results
PT Indosat Tbk - 1H 2015 Results
Agenda
PT Indosat Tbk - 1H 2015 Results
Financial and Operational Highlights
Management Focus and Key Updates
Supplemental Information
Financial and Operational Highlights
PT Indosat Tbk - 1H 2015 Results
2Q15 QoQ Overview
Consolidated Revenue increased 7.1% to IDR 6,527 billion
EBITDA increased 5.9% to IDR 2,758 billion, EBITDA Margin reached 42.3%
Loss Attributable to Owners of The Parent decreased to a loss of IDR 278 billion
Free Cash Flow increased to IDR 1,096 billion
PT Indosat Tbk - 1H 2015 Results
1H15 YoY Overview
Consolidated Revenue increased 8.7% to IDR 12,620 billion
EBITDA increased 6.7% to IDR 5,362 billion, EBITDA Margin reached 42.5%
Loss Attributable to Owners of The Parent decreased to a loss of IDR 734 billion
Free Cash Flow decreased to IDR 1,578 billion
PT Indosat Tbk - 1H 2015 Results
Financial Highlights
Operating Revenue
EBITDA
EBITDA Margin
Loss Attributable to Owners of the Parent
12,620
1H-14* 1H-15 YoY
8.7%
5,362 6.7%
42.5% -0.8ppt
-734 -34.3%
6,527
1Q-15 2Q-15 QoQ
7.1%
2,758 5.9%
42.3% -0.4ppt
-278 -38.9%
in IDR billion
11,613
5,027
43.3%
-1,117
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
• Network modernization completion continued to lead the revenue growth YoY • EBITDA start to improve in line with revenue growth
PT Indosat Tbk - 1H 2015 Results
6,093
2,604
42.7%
-456
861 845 887 916 900 935
261 281 292 262 290 271
in IDR billion
3Q-14
+7.1% QoQ +11.8% YoY
4Q-14
5,840 5,773
2Q-14 1Q-14
Cellular Fixed Data Fixed Voice
-6.8% / -3.8%
+4.0% / +10.8%
+8.5% / +12.9%
QoQ / YoY
4,714 4,651 4,925
6,104
1Q-15
5,190
6,368
4,903
6,093
• Cellular and Fixed Data developing well in 2Q compared to same period last year
PT Indosat Tbk - 1H 2015 Results
Segment Revenue Overview
2Q-15
5,321
6,527
Operating Revenue Breakdown
Voice
SMS
Data
VAS
1.5%
2Q15 YoY
3.4%
83.6%
24.4%
6.6%
2Q15 QoQ
9.0%
17.7%
22.6% Increase VAS usage from various gaming & content packages
- Migration to data continues to impact voice and SMS usage and revenue
- Voice and SMS usage increased at the beginning of fasting month
Increase data usage from attractive data offerings related to month of Ramadhan in 2Q
Cellular Revenue Performance
PT Indosat Tbk - 1H 2015 Results
Cellular Customer Base
59.7 54.9 54.2
63.2 66.5 68.5
4Q-14
+24.7% YoY +2.9% QoQ
3Q-14 2Q-14 1Q-14
Number of cellular customers in million
4Q-14 3Q-14 2Q-14 1Q-14
in million
0.1
-4.8
-0.7
9.0
3.3 2.0
1Q-15 1Q-15
Net cellular customers additions
• Significant customer additions in the past 3 quarters due to aggressive acquisition campaigns following improved network quality perception
PT Indosat Tbk - 1H 2015 Results
2Q-15 2Q-15
PT Indosat Tbk - 1H 2015 Results
Improving ARPU in 2Q15
ARPU and ARPM Voice Traffic and MOU
• ARPU has improved in 2Q15. It has been declining since 3Q14 in line with increasing customer base
• MOU decreasing in line with expectation and general industry trend
79 80 78 78 67 67
140 143 148 142 140 145
13.5 13.6 13.1 13.6 13.2 13.5
-0.7% YoY
4Q-14
+2.1% QoQ
3Q-14 2Q-14 1Q-14
Voice Traffic
in billion minutes (Voice Traffic)
in minute/subscriber (MOU)
MOU
25.8 26.6 28.3 28.0 24.0 25.3
3Q-14 2Q-14 1Q-14
+5.3% QoQ -5.0% YoY
4Q-14
ARPU
in thousand IDR (ARPU)
ARPM
1Q-15 1Q-15 2Q-15 2Q-15
in IDR (ARPM)
Data Usage SMS Delivered
Strong Data Usage
• Number of data users growing in line with Company’s strategy to acquire customers through data offering stimulated by improved network
60 61 57 59 56 60
15,372 19,185
20,911
29,891
39,880
46,027
in TByte
+15.4% QoQ +139.9% YoY
4Q-14 3Q-14 2Q-14 1Q-14
in billion
-1.8% YoY
4Q-14 3Q-14
+6.8% QoQ
2Q-14 1Q-14 1Q-15 1Q-15
PT Indosat Tbk - 1H 2015 Results
2Q-15 2Q-15
Operational expenses
PT Indosat Tbk - 1H 2015 Results
• Moderated operational expense • Impact from accelerated Depreciation has been diminished
Cost of Service (CoS)
Depreciation and Amortization
Personnel
Marketing
as percentage of revenue
General and Administration
Total Expenses
Total Operating Expenses
1Q-14
41.4%
34.4%
7.3%
2.8%
3.4%
89.3%
54.9%
2Q-14*
43.4%
33.6%
7.4%
3.6%
4.1%
115.5%
58.6%
3Q-14*
42.7%
33.4%
7.4%
4.9%
3.0%
91.4%
58.0%
Provision for Legal Case 23.3%
4Q-14*
45.2%
35.1%
6.9%
5.9%
3.8%
96.8%
61.7%
1Q-15
42.9%
33.9%
7.4%
3.0%
3.8%
91.2%
57.3%
2Q-15
42.1%
32.2%
6.9%
4.6%
4.2%
89.9%
57.7%
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
EBITDA performance
EBITDA and EBITDA margin
2,607 2,420 2,567 2,440 2,604 2,758
+5.9% QoQ +14.0% YoY
4Q-14* 3Q-14* 2Q-14* 1Q-14
EBITDA
in IDR billion
EBITDA Margin
45.1% 41.4% 42.0%
38.3% 42.7%
1Q-15
• 2Q15 EBITDA margin in line with guidance • Revenue development improving with
continued good cost management
PT Indosat Tbk - 1H 2015 Results
2Q-15
42.3%
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
-734
Net profit Normalized net loss bridge
Normalized net profit
• 1H15 net loss impacted mainly by IDR depreciation
-231
-1,117
-734
+34.3% YoY -383.3% YoY
1H-15 1H-14* 1H-13
in IDR billion in IDR billion 1H-15
Normalized Net –
FX Loss
Reported
PT Indosat Tbk - 1H 2015 Results
-637
-97
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
2.17
2.54
3.13
Balance sheet
Gross debt* and gross debt/EBITDA Net debt* and net debt/EBITDA
PT Indosat Tbk - 1H 2015 Results
• Total debt increased due to Rupiah depreciation and loan facility withdrawal as part of USD bond early repayment preparation
* IDR 3.4tn, IDR 3.8tn and IDR 4.0tn of obligation under finance lease are included in 1H13, 1H14 and 1H15 respectively
23,931 25,598
32,437
2.01
2.32 2.22
22,133 23,379 23,017
1H-14 1H-13 1H-15
+26.7% YoY
Gross Debt
in IDR billion
Gross Debt/EBITDA
1H-15 1H-13 1H-14
-1.6% YoY
Net Debt Net Debt/EBITDA
in IDR billion
Free cash flow & Capex
Free cash flow Capex and Capex/Revenue
PT Indosat Tbk - 1H 2015 Results
• FCF strengthening with improved operating CF generation and moderating capex • Capex to revenue trend improving
in IDR billion
1,319
876
356
-206
481
1,096
4Q-14 3Q-14 2Q-14 1Q-14
4Q-14 3Q-14 2Q-14 1Q-14
Capex
in IDR billion
Capex/Revenue 1Q-15
1Q-15
27.5 28.6 25.7 25.4 23.2
21.1
2Q-15
2Q-15
1,590 1,669 1,566 1,618 1,414 1,372
Network development
Number of BTS Cellular Revenue per BTS
PT Indosat Tbk - 1H 2015 Results
• Network modernization is completed • Strong network performance in already modernized areas
394 365
276 238 226 195
19,892 20,585 21,420 22,166 22,212 22,902
6,363 13,328
15,962 18,063 18,544 20,067
+5.4 QoQ +26.7% YoY
4Q-14 3Q-14 2Q-14 1Q-14
2G 3G
In IDR million
1H 2015 1H 2014
XL
Indosat
Telkomsel
26,255
33,913 37,382
1Q-15
40,229 40,756
2Q-15
42,969
2Q in summary
PT Indosat Tbk - 1H 2015 Results
Management Focus and Key Updates
PT Indosat Tbk - 1H 2015 Results
Our Focus
Develop adjacent and new businesses
Increase cost efficiencies enabling continued investments
Improve monetization on the strong growth of data users and increasing traffic
Leverage modernized network and improved customer experience driving revenue growth
LTE roll out to further enhance data experience
PT Indosat Tbk - 1H 2015 Results
2015 Guidance
PT Indosat Tbk - 1H 2015 Results
FY 2014 Actual FY 2015 Guidance
Consolidated Revenue Growth 1.0% In line with market
EBITDA Margin* 41.7% Low to Mid 40’s
Cash CAPEX IDR 6.4 trillion IDR 6.5 - 7.5 trillion
* Restated due to implementation of PSAK 24 (revised 2013) effective 1 January 2015
Thank you
PT Indosat Tbk - 1H 2015 Results
Investor Relations & Corporate Secretary Jl. Medan Merdeka Barat No. 21 Jakarta - 10110 Tel: +62 21 30442615 [email protected]
Disclaimer
PT Indosat Tbk - 1H 2015 Results
• PT Indosat Tbk ( “Indosat” or “Company” ) cautions investors that certain statements contained in this document state its management's intentions, hopes, beliefs, expectations, or predictions of the future are forward-looking statements
• The Company 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:
• The Company’s ability to manage domestic and international growth and maintain a high level of customer service
• Future sales growth
• Market acceptance of the Company’s product and service offerings
• The Company’s ability to secure adequate financing or equity capital to fund our operations
• Network expansion
• Performance of the Company’s network and equipment
• The Company’s 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 also advised that the information provided herein are merely issued to coincide with the release of Ooredoo QSC (formerly known as Qatar Telecom QSC) results for the year ended 31 December 2013, as the Company’s 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 Firm on the Company’s consolidated financial statements which are prepared in accordance with the Indonesian Financial Accounting Standards (IFAS), Indosat expects to file and release its consolidated financial statements for the year ended 31 December 2013 on 30 April 2014 at the latest (“Indosat’s Official Release”). Accordingly, the information provided herein may differ from what is contained in Indosat's Official Release.
Supplemental Information
PT Indosat Tbk - 1H 2015 Results
IM2 case development
PT Indosat Tbk - 1H 2015 Results
On September 16, 2014, the South Jakarta Attorney Office
(“Kejaksaan Negeri Jakarta Selatan”), without preliminary
notification, executed the Supreme Court’s Decision on Mr. Indar
Atmanto. The execution was done based on a quotation of the
Supreme Court’s Decision, which states, among others, that (i) Mr.
Indar Atmanto is found guilty and sentenced to eight years
imprisonment and charged with penalty of Rp300,000,000,- (if the
penalty is not paid, Mr. Indar Atmanto would serve an additional six
months imprisonment), and (ii) IM2 pay the losses sustained by the
State amounting to Rp1,358,343,346,674,-.
Subsequently, on January 16, 2015, Mr.Indar Atmanto and/or his
lawyer or IM2 received the document on the Supreme Court’s
decision regarding the litigation case. As of the issuance date of
the consolidated financial statements, Mr. Indar Atmanto and IM2
plan to conduct further legal act by submitting a reconsideration
request peninjauan kembali (”PK”).
On March 16, 2015, Mr. Indar Atmanto’s submission of judicial
review [Peninjauan Kembali (”PK”)] was officialy registered at the
Corruption Court under No.
08/AKTA.PID.SUS/PK/TPK/2015/PN.Jkt.Pst.
Credit ratings
PT Indosat Tbk - 1H 2015 Results
On 25 May 2015, Standard and Poor’s (“S&P”) revised its outlook on eight Indonesian companies and two Indonesian financial institutions to positive from stable. They revised the outlook on Indosat to reflect the prospect for exceptional support from Ooredoo Q.S.C. following the outlook revision on the sovereign credit rating on Indonesia. They consider Indosat to be a strategically important subsidiary of its parent but they do not consider parental support as a basis for a rating above the sovereign foreign currency rating for strategically important subsidiaries.
On 3 February 2015, PEFINDO has affirmed “idAAA” rating of PT. Indosat Tbk’s Bond VI Year 2008 Seri B amounting to IDR320 billion that will mature on April 9, 2015. ISAT should be able to repay the maturing bond using its internal fund. At the end of 2014, it had cash and cash equivalent amounting to IDR3.5 trillion and unused credit facilities totalling almost IDR3.0 trillion.
On 1 April 2015, Moody's Investors Service says that PT Indosat Tbk's (Ba1 stable)
overall FY2014 financial performance is in line with expectations, with an improved
operating performance in the second half of the year offsetting a weaker first half.
On 5 May 2015: Fitch Ratings Indonesia has assigned National Long-Term Ratings of
'AAA(idn)' to PT Indosat Tbk's (Indosat; BBB/AAA(idn)/Stable) IDR1.75trn senior
unsecured bonds and IDR250bn sukuk ijarah issues. The issues are from Indosat’s
IDR9trn bond programme and IDR1trn sukuk ijarah programme - affirmed at 'AAA(idn)' on
27 March 2015 - and are consequently rated at the same level as the programmes.
Debt maturity profile*
PT Indosat Tbk - 1H 2015 Results
In IDR trillion
2019 2018 2022 2017 2016 2015
IDR
USD in IDR
2021 2025
Number of BTS
* Excluding obligation under capital lease
9.13
1.49 2.53 2.13
0.27
1.00
1.81
2.53
1.36
2.27
0.65 0.36 1.88
0.36 0.60
2020 2024
Spectrum overview
PT Indosat Tbk - 1H 2015 Results
Number of BTS
10.0
900 Mhz
7.5
7.5
Indosat
Telkomsel
XL Axiata
20.0
1800 Mhz
22.5
22.5
10.0
2100 Mhz
15.0
15.0
in Mhz
Hutchison - 10.0 10.0
2.5
850 Mhz
3.5 – 5.0*
-
-
* Telkom and Bakrie Telekom have the same spectrum, differentiated by its operational areas
15.0**
2300 Mhz
15.0**
-
-
** Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku