PT Indosat Tbk. First Half 2006 Results. First Half 2006 Results Page 1

Transcription

1 PT Indosat Tbk First Half 2006 Results First Half 2006 Results Page 1

2 Key Highlights in 1H 2006 (YoY) Cellular Subscribers growth by 7.7% Operating revenues Flat (-0.2%) MIDI revenues increased by 13.1% IDD traffic increased by 14.3 % EBITDA increased by -2.6% Net Income increased by -30.2% First Half 2006 Results Page 2

3 Key Business Segment Cellular Business Fixed Telecomm (Voice) Data Com & Broadband Matrix Postpaid for high end with advanced features Mentari Prepaid for general users IDD 001 Premium IDD IDD 008 Budget IDD Indosat International Leased Circuit International Frame Relay/ATM VSATs Wholesale Internet Access IM3 Prepaid for the young & trendy FlatCall 016 Flat Rate IDD Domestic Leased Circuit Domestic Frame Relay/ATM VSATs Corporate Solutions StarOne Fixed Wireless Access GlobalSave VoIP Service IP Virtual Private Network Dedicated and Dial Up Internets Wi-Fi & HotSpots First Half 2006 Results Page 3

4 Operators & Market Share at 1H-06 GSM Operators (Major Holders) Indosat (ST Telemedia) Telkomsel (Singtel & Telkom) Excelcom (Telekom Malaysia) Mobile CDMA Mobile-8 (Bimantara) BAKRIE TELCO, 17.9% MOBILE8, 24.7% TELKOM, 54.1% CDMA, 11% StarOne, 3.3% Fixed Wireless CDMA Bakrie Telecom (Bakrie) Telkom Flexi (Telkom) StarOne (Indosat) XL, 16.3% GSM, 89% INDOSAT, 26.9% New License Holders Hutchison CP Tel LippoTelecom (Maxis) TELKOMSEL, 56.8% Source: Company reports and estimates First Half 2006 Results Page 4

5 Cellular Subscribers Composition Subs composition as end of 1H06 (in 000) Prepaid 95% Java, 81% Subs Composition as end of 1H06 Postpaid 5% Non Java, 19% (Rp billion) Cellular Subscribers 13,860 12,875 7,355 4,312 1H03 1H04 1H05 1H06 300, , , , ,000 50,000 0 ARPU 1H-05 1H-06 Prepaid Postpaid Blended First Half 2006 Results Page 5

6 Data Communications & Broadband Revenue (In Million Rupiah) 1, MIDI Revenue Revenue 1H03 1H04 1H05 1H06 MIDI revenues increased 13.1% (YoY). The main driver of growth is the increase from corporate IP-related services such as IP-VPN, Internet Access and Frame Relay Description Unit 1H05 1H06 Change Indosat : (Accumulated Numbers) Wholesale International High Speed Leased Circuit cct/64k 3,342 7, % Domestic High Speed Leased Circuit cct/64k 21,618 37, % Satellite Transponder Leased (external usage) # transp % Datacom International High Speed Leased Circuit cct/64k % Domestic High Speed Leased Circuit cct/64k 4,276 6, % Frame Relay port % IPVPN cct/64k 645 4, % Lintasarta : (Accumulated Numbers) High Speed Leased Line (SDL) link 1,626 1, % Frame Relay access 4,450 4, % VSAT terminal 1,736 1, % IPVPN link 1,598 2, % IM2 Internet Dial Up user 29,048 28, % Internet Dedicated link 717 1, % IPVPN link % First Half 2006 Results Page 6

7 Fixed Telecommunication (Voice) (in thousands minutes)) 600, ,000 Trend in IDD Traffic Revenues Composition (2Q06) Cellular 74.4% 400, ,000 MIDI 16.1% SLI 9.5% 200, ,000 70% 75% 83% 87% Fixed telecommunication contributed 9.5% to operating revenues mostly from IDD revenues. 0 30% 25% 17% 13% 1H03 1H04 1H05 1H06 Outgoing Incoming Increasing contribution from FWA, fixed line and DLD but not yet significant at this moment. First Half 2006 Results Page 7

8 Cellular Network Coverage Indosat Nationwide Cellular Coverage Non Java, 32.6% Number of BTS Java, 67.4% Base Transceiver Stations Base Station Controllers Mobile Switching Centers 1H06 6, First Half 2006 Results Page 8

9 Financial Performance (YoY) In billion Rupiah Operating Revenues Rp5, % Operating Income Rp1, % EBITDA Rp3, % Other Income (Expenses) (Rp744.5) 2.6% Net Income Rp % First Half 2006 Results Page 9

10 Revenues and EBITDA growth Indosat recorded healthy revenues and EBITDA growth Revenues EBITDA and EBITDA Margin (Rp billion) (Rp billion) 6,767 8,230 10,430 11,590 5,781 5,767 3,662 4,386 6,732 6, % 57.7% 58.7% 57.3% 3,394 3, % 53.3% H05 1H H05 1H06 EBITDA EBITDA Margin First Half 2006 Results Page 10

11 Sound Balance Sheet EBITDA Margin Interest Coverage 57.7% 58.1% 58.7% 57.3% 578.9% 559.2% 53.3% 531.4% 542.6% 536.7% H05 1H H05 1H06 Debt to EBITDA Net Debt to Equity 190.7% 191.9% 224.5% 222.5% 220.8% 48.9% 41.6% 54.4% 42.5% 56.0% H05 1H H05 1H06 First Half 2006 Results Page 11

12 Composition of Assets & Liabilities Indosat is relatively hedged against currency and interest rate fluctuations (94% of debts had fixed interest rate as of 30 June 2006). Net liabilities in US$ was US$512.3 million of which US$375 million was hedged as of 30 June Cash and its Equivalent Rupiah 41% (Per 30 June 2006 Total Rp 3,671.5 bio) US$ 59% In US$ million as of 30 June Payables (Per 30 June 2006 Total Rp11,633 bio) % 46% 0 Liabilities Assets Net Others 512 Payables 293 Bonds Payable 550 Receivables 121 Cash & Equivalent 210 First Half 2006 Results Page 12

13 Committed Shareholders Indosat s shares are majority owned by public investors (44.56%) ST Telemedia through Indonesia Communications Limited owns (41.06%) Indonesian Government owns 14.38% including Series A share Republic of Indonesia Public 41.06% 44.56% 14.38% Listed on the JSX, SSX and NYSE Note: (1) Per 30 June 2006 First Half 2006 Results Page 13

14 Key Initiatives in 1H-2006 Established Sales and Performance Focus Organization New Structure Launch in April Expand regional offices from 5 regions to 8 regions Enhance network Coverage, Quality and Capacity Resolved the network swap issues Roll-out additional BTS Improve capacity and quality (in Java) and coverage (ex-java) Confidently launch innovative marketing and promotion initiatives First Half 2006 Results Page 14

15 Marketing initiatives Initial Results MentariFreetalk, FlatZone, Bundle with Nokia Daily Sales increased by 12.2% Average Daily User at Freetalk period increased by 376% Reload voucher increased by 5.9% MoU increased by 31.4% (local) and 67.5%(on-net) Intention To position Mentari as a best offer in voice services Raja SMS IM3, Long Validity Voucher, Bundling with Motorola C-113 Daily Sales increased by 23% Traffic SMS IM3 (delivered) increased by 43% Cheapest bundle for GSM Handset (Rp299K) To position IM3 as the best offer in SMS services Innovative Value Added Services: I-Ring (Ring backtone) I-Say (Voice SMS) I-mofis (Mobile Office) To increase revenue through various Value Added Services First Half 2006 Results Page 15

16 Recent Development New Interconnection Scheme All operators have submitted Reference Interconnect Offer (RIO) to and approved by regulator. New Interconnection scheme will be implemented in January Prepaid Registration The regulator requires operator to complete mandatory prepaid registration by September Unregistered customers should deleted from the system. As of August , we have registered million customers or around 97% of our total customers. Fixed Wireless Access (StarOne) Indosat launched Fixed Wireless Access (FWA) through its brand Jagoan and StarOne Postpaid for Palembang area as part of its plan to expand FWA services in 15 cities during year In addition to Palembang, currently, StarOne is available in 8 cities in Indonesia, Jakarta, Bogor, Surabaya, Malang, Medan, Batam and Pekanbaru. First Half 2006 Results Page 16

17 Moving Forward Marketing Strategy Following up the next phases of Marketing Initiatives Allocating additional marketing and promotion dollars Fine tuning the distribution network and strategy Network and Services Continue Network Improvement : simplifying and integration Prepare the roll-out of 3G Network for launch in the second half of 2006 Opening up new cities for GSM and FWA Capex Committed US$700 million for 2006 Business growth justifies aggressive roll-out moving forward Planning had started and will be announced after 3Q-06 results release First Half 2006 Results Page 17

18 First Half 2006 Results Page 18 Thank You