Brief Presentation September 2005 Page 1. Corporate Presentation PT Indosat Tbk First Half 2005

Transcription

1 Brief Presentation September 2005 Page 1 Corporate Presentation PT Indosat Tbk First Half 2005

2 Key Business Segment Indosat s key businesses are Cellular, Fixed Telecom and MIDI Description Cellular Business Fixed Telecom MIDI Second largest cellular operator in Indonesia Revenue comes primarily from IDD business (87%) Corporate Data Communications, Leased Lines, Satellite, Internet Contribution (1H 2005) 75% of revenue 11% of revenue 14% of revenue Target Market Segment Corporate Youth Mass Corporate SME Residential Wholesale Corporate Residential Services Matrix Postpaid for high end with advanced features Mentari Prepaid for general users IM3 Prepaid for the young trendy IDD 001 IDD 008 Flat call StarOne Frame Relay Leased Circuits Data Comms Internet Access VSATs Brief Presentation September 2005 Page 2

3 Ownership Structure Indosat s shares are majority owned by public investors (44.2%) ST Telemedia through Indonesia Communications Limited owns (41.0%) Indonesian Government owns 14.7% including Series A share Republic of Indonesia Public 41.0% 44.2% 14.7% Listed on the JSX, SSX and NYSE with market cap of around Rp29.1 trilion (1) Note: (1) Per 30 Juni 2005 Brief Presentation September 2005 Page 3

4 Vision and Strategy VISION : To become a leading cellular / wireless focused telecommunication network and service provider in Indonesia Strategy Focus on cellular subs growth Maintain IDD business and entering into DLD and FWA business Nurturing MIDI business through synergy among business lines Increase efficiency and synergy development Brief Presentation September 2005 Page 4

5 Main Initiatives Enhanced Customer Focus Enhance services in new regions Enhance market segmentation and targeting Acceleration of network roll out and investment (Around US$900 mio in 2005 and US$670 mio in 2006, 85% for cellular) Committed to Good Corporate Governance due to the listing in the Jakarta, Surabaya and NY Stock Exchanges Brief Presentation September 2005 Page 5

6 Major Achievements in First Half cellular subscribers with a cellular revenues growth of 31% (YoY) MIDI revenues increased 13% (YoY) IDD traffic increased 6% despite a decline in its revenues due to a tighter competition The succesful financing program (US$ note and IDR bond) and decrease in cost of borrowing/debt Realization of merger benefits (cost efficiencies) Brief Presentation September 2005 Page 6

7 Cellular Services Recording a high subs growth in recent years (CAGR 65% ) In first half 2005 Indosat recorded net add of 3.1 mio subs, hence the cellular subs base on June 30, 2005 was 12.9 mio subscribers. Indonesian cellular penetration is relatively lower compared to other countries. (dalam ribu) Cellular Subscriber Growth Cellular Penetration (GSM) 1 45, Singapore 91.0% 40, ,000.0 Indosat CAGR 65% Indonesia CAGR 62% Malaysia 49.9% 30, ,000.0 Thailand 41.9% 20, ,000.0 Phillippines 36.4% 10,000.0 China 26.0% 5, Indonesia 17.5% Jun-05 Indosat Indonesia India 4.5% Notes : (1) Penetration data as of end 2004, except Indonesia per 30 June 2005 Brief Presentation September 2005 Page 7

8 Cellular Subscribers Composition Subs composition as at June (in 000) Subs Composition as at June Prepaid 96% Java, 74.5% Postpaid 4% (Rp billion) Cellular Operating Revenues CAGR 51% 3,272 5,118 7,451 3,370 4, H-04 1H , , , , ,000 50,000 0 ARPU 30 Juni Juni-05 Prepaid Postpaid Blended Non Java, 25.5% Brief Presentation September 2005 Page 8

9 Fixed Telecommunication and MIDI (in thousands minutes)) 1,000,000 Trend in IDD Traffic Revenues Composition (1H 2005) Cellular 75% 900, , , , , , , , , % 73% 78% 83% 40% 27% 22% 17% H-05 Outgoing Incoming MIDI 14% SLI 11% Fixed telecommunication contributed 11% to operating revenues. IDD contributed 87% to fixed telecom revenues. MIDI revenues increased 13.1% (YoY), mainly due to continued demand in the domestic wholesale market. Brief Presentation September 2005 Page 9

10 Cellular Network Coverage Indosat Cellular Coverage Non- Java 33% Number of BTS Java 67% 1H-05 Base Stations Base Station Controllers Mobile Switching Centers 4, Brief Presentation September 2005 Page 10

11 International and National Backbone Network Sea-Me-We 3 APCN Palapa C2 (113 o BT) Duri Batam Pk.Pinang Lampung Bogor Pacet Solo Madiun Kertosono existing (International) existing (Domestic) Plan Plan Brief Presentation September 2005 Page 11

12 Organization Structure President President Hasnul Hasnul Suhaimi Suhaimi Deputy Deputy President President Ng Ng Eng Eng Ho Ho Consumer Consumer Market Market Johnny Johnny S. S. Sjam Sjam Corporate Corporate Market Market Wahyu Wahyu Wijayadi Wijayadi Planning Planning Project Project Dev Dev Wityasmoro Wityasmoro S. S. H. H. Network Network Ops Ops Quality Quality Mgmt Mgmt Raymond Raymond Tan Tan Information Information Technology Technology Joseph Joseph Chan Chan Finance Finance Wong Wong Heang Heang Tuck Tuck Corporate Corporate Services Services S. S. Wimbo Wimbo S. S. Hardjito Hardjito Jabotabek Jabotabek Banten Banten Sumatera Sumatera Jawa Jawa Barat Barat Jawa Jawa Tengah Tengah Jawa Jawa Timur Timur Kalimantan Kalimantan Sulawesi, Sulawesi, Maluku Maluku Papua Papua Senior Senior Vice Vice Presidents Presidents Brief Presentation September 2005 Page 12

13 Human Resources Employees Composition (Total Headcount 7,931 per 30 June 2005) Permanent 61% 7,000 6,000 5,000 4,000 3,000 2,000 Indosat Lintasarta IM2 Sisindosat Nonpermanent 39% 1, /06/04 30/06/05 Indosat employees comprise of permanent employees (61%) and nonpermanent employees (39%). Non-permanent employees are hired for support functions. Brief Presentation September 2005 Page 13

14 Financial Performance (1H 05 vs 1H 04) In billion Rupiah Operating Revenues Rp5, % Operating Profit Rp1, % EBITDA Rp3, % Net Income 1,2 ) Rp % (increased 9.6% before restatement) Total Assets Rp32, % (1)Restated for the early adoption of SAK 24 (Revised 2004), Accounting for Employee Benefits, and SAK 38 (Revised 2004), Accounting for Restructuring Transactions of Entities under Common Control. (2) In 1H-04 we recorded gain from the sale of our shares in MGTI amounting to Rp278.7 billion and gain from the sale of our shares in PIN amounting to Rp110.9 billion. Brief Presentation September 2005 Page 14

15 Revenues and EBITDA growth Indosat recorded strong revenues and EBITDA growth Revenues EBITDA and EBITDA Margin (Rp billion) (Rp billion) CAGR 25% 10, CAGR 29% 6,053 6,767 8,235 5,884 3,662 4, % 57.7% 3, % 53.3% H H-05 EBITDA EBITDA Margin Brief Presentation September 2005 Page 15

16 Sound Balance Sheet Net Debt (1) / EBITDA Interest Coverage 1.7x 1.6x 1.2x 1.2x 6.2x 5.2x 5.5x 5.8x H-05 (2) H-05 (1) Notes: (1) Including procurement payables (2) Annualized EBITDA Per 30 June 2005 Notes: (1) Annualized EBITDA per 30 June 2005 Net Debt (1) / Capitalization Gross Cash Flows / Debt (1) 46% 49% 47% 43% 32% 38% 46% 48% H H-05 (3) Notes: (1) including procurement payables Notes: (1) Cash flows calculated as EBITDA minus tax (2) Annualized cash flow per 30 June 2005 Brief Presentation September 2005 Page 16

17 Composition of Assets Liabilities Indosat is relatively hedged against currency and interest rate fluctuations (98% of debts had fixed interest rate as at 30 June 2005). Net liabilities in US$ was US$311 million and US$225 million was hedged as at 30 June Cash Equivalent (Total US$703 million as at 30 June 2005 ) In US$ million as at 30 June 2005 Rupiah 53% US$ 47% Outstanding Borrowings (Total US$1.285 billion as at 30 June 2005) including current maturities) Rupiah, 57.2% US Dollar 42.7% Liabilities Assets Net Others 311 Payables 213 Bonds Payable 548 Receivables 118 Cash Equivalent 332 Brief Presentation September 2005 Page 17

18 Recent Development 3G Trial USO Trial until end of the year with 5MHz in Jakarta and 10 MHz in Surabaya. DG Postel announced plan to tender 2 x 5 MHz of 3G spectrum this year and 25 MHz in DG Postel will evaluate the existing spectrum allocation and utilization. Government Regulation No 28/2005 issued on 5 July 2005 regulates, among others, the USO contribution. USO Contribution defined as 0.75% of operating revenues. Divestment of non-core subsidiaries Sale of investment in Camintel amounted to US$1.5 million and in Patrakomindo amounted to Rp3.5 billion, both at around carrying book value. Closing will be subject to fulfillment of conditions. Brief Presentation September 2005 Page 18

19 Brief Presentation September 2005 Page 19 Thank You