S I N G T E L I N V E S T O R D A Y 2018

Transcription

1 S I N G T E L I N V E S T O R D A Y 2018 H e r i S u p r i a d i A l i s t a i r J o h n s t o n Singapore, 13 June

2 TABLE OF CONTENTS 1 T E L K O M S E L P E R F O R M A N C E 2 I N D O N E S I A D I G I T A L T R E N D S 3 T E L K O M S E L D I G I T A L I N I T I A T I V E S 2

3 TELKOMSEL Performance 3

4 TELKOMSEL IN BRIEF Company s Profile Revenues in trillion Rupiah Started operations in 1995, Telkomsel is the subsidiary of PT Telekomunikasi Indonesia Tbk (65%) and Singapore Telecom Mobile Pte Ltd (35%) Within 23 years, Telkomsel has established itself as the leading cellular operator in Indonesia with 193 million customers and more than 5,400 employees It has the widest network coverage with more than 167,600 BTS On-Air covering ± 99% of population Positioned as the postpaid brand of choice for professionals and corporate customers segment Positioned as the prepaid brand for the savvy middle class segment +7.5% 93.2 EBITDA & EBITDA Margin in trillion Rupiah 56.0% % % 57.5% Main Products Positioned as an affordable and value prepaid brand for the mid-low segment Positioned as youth segment prepaid brand with focus on offering attractive Data and Digital Services Key Performances EBITDA Margin Net Income & Net Income Margin in trillion Rupiah 29.4% % % 32.6% 30.4 NI Margin Total Customer Base in million % Total BTS On-Air & Total 3G/4G BTS in thousand % G/4G BTS

5 TELKOMSEL IN BRIEF Population Coverage: ± 99% with 3G Coverage: ± 85% & 4G Coverage: ± 80% Papua, Maluku, Sulawesi, Kalimantan CB portion: 21% Sumatera CB portion: 27% Greater Jakarta & West Java CB portion: 24% Java & Bali CB portion: 28% Indonesia Telco Industry Overview Mature industry with estimated 135% SIM-card penetration (±75% population-based). Rapidly shifting dynamics industry with transition of Legacy to Data services Growing Data Business with around 70% of which were 3G/4G BTS and 59% 3G/4G capable device penetration Tremendous growth in Digital Business with Data traffic and Data revenue grew by 146% and 21% YoY, respectively in 1Q

6 PERFORMANCE HIGHLIGHTS 1Q-2018 Accelerated transition of Legacy to Data Services & continuous intense competition landscape TSEL was able to still booked a substantial amount of Revenues, EBITDA & Net Income In Trillion Digital Business REVENUES % % EBITDA In Trillion -9.2% 13.2 YEAR-ON-YEAR 12.0 In Trillion NET INCOME -16.7% In Trillion CAPEX % 3.6 Legacy % Margin Margin 59% 55% 35% 29% In Trillion TOTAL ASSET -1.0% In Million CUSTOMER +13.8% In Thousand BTS ON AIR +23.2% %

7 PERFORMANCE HIGHLIGHTS 1Q-2018 Continue to Focus on Digital Business Engine of growth and accounted for 48% of Total Revenues DIGITAL BUSINESS REVENUE In Trillion Broadband 7.6 Digital Services % % +61.1% DATA USER In Million 89.6 YEAR-ON-YEAR +21.3% DATA TRAFFIC In PB % Digital Business: 3G/4G CAPABLE DEVICE In Million +35.2% G & 4G BTS ON AIR In Thousand +35.9% 4G 3G % +9.4% 7

8 BIG 3 PERFORMANCE (1Q-2018 YoY) Cellular Revenue (Rp.Tn) Industry Growth (BIG-3) -5.4% -1.9% ppt ISAT -4.1ppt 14% -27.0% 12% XL 17% Rev share TSEL 69% +4.5% +2.5ppt EBITDA (Rp.Tn) -9.2% % +7.5% Margin 59% 55% 43% 34% 35% 36% Net Income (Rp.Tn) -16.7% % -66.8% Margin 35% 29% 3% -8% 1% 0% Customer Base (Mn) Industry Growth (BIG-3) +9.7% +13.8% ppt -2.5ppt +0.6% % XL 16% ISAT 28% Market share TSEL 56% +13.5% ARPU (Rp.000) ppt % +23.2% % BTS On Air (000) +10.7% % % +20.7% % 17% 19% 4G BTS Addition (000) 49% 45% 4.7 3G 55% 45% % % 9% 41% % 49% 43% 36% 100% 61% 67% 37% 38% 2G 100% 43% 42% 42% 46% 29% 32% -8% 10% 10% 1% -1% % -1.6% +78.4% +48.5% 8

9 2018 GUIDANCE Revenue Inline with or slightly above market growth EBITDA Margin Slightly decline compared to last year CAPEX Approximately 15-17% over revenue BTS roll out Focus on 4G roll out 9

10 Indonesia Digital Trends 10

11 Indonesia An emerging market with digital growth potential By going digital, Indonesia can unleash the next level of economic growth to the tune of $ 150 Bio in annual economic impact by 2025 In 2017, invested money in Start Up $ 2,932 Mio rising 60x larger than 2016 Start Up Market +38% E-commerce industry growth for the last 4 years $7.1Bio Total E-Commerce Sales reached in 2017 *source: CBInsights (Sept 2017), DBSInsight (2018), Katadata (2018), McKinsey&Company (Oct 2016), Fintech Indonesia (2018) >230 Financial Technology (Fintech) players in Dec

12 TELKOMSEL Digital Initiatives 12

13 TELKOMSEL Continued To Transform All Aspects Of The Digital Business To Become A Digital Telco Company And Leading Mobile Digital Business Digital Lifestyle Video Music Games Tcash Tap & QR Digital Business Solutions Big Data Internet of Things Digital Advertising Enterprise Solutions MyTelkomsel Apps Telkomsel.com LOOPKita Apps Digital Channel 13

14 WHAT WE HAVE DONE STRATGY & INITIATIVES MyTelkomsel App becomes the best selfcare app in Indonesia and will focus to expand from only feature delivery to business driven execution ACHIEVEMENTS The Best Customer Self Service App (Selular Award 2018) KEY MILESTONE 53.5 Mio Downloaders 11.6 Mio Active User 3.7 Mio Package User FEATURES AND UI/UX Continue Improve MyTsel UI/UX based on UI/UX heuristic benchmarks TACTICAL TRADITONAL CHANNEL ACTIVITIES through traditional channels ( Grapari, UMB, etc ) and tactical events PRODUCT AND OFFERS Offering introductory products and personalized Offers to drive app adoption PARTNERSHIP collaboration with 3 rd parties to give more Values. DIGITAL MARKETING drive awareness and engagement on digital marketing channel TECHNOLOGY AND CORE PLATFORM enhance scalability, capability and performance at current technology infrastructure 14

15 WHAT WE HAVE DONE STRATGY & INITIATIVES Video - The strategy is to increase relevancy and utility of VideoMAX and shift portion of video payload into VideoMAX Launched Maxstream on 5 Jun 18 Partners Maxstream is a video application that features thousands of movies, TV shows and Cartoons as well as offers wide range of attractive VideoMax package Present: With MAXStream capability to playout, portion of youtube is expected to go lower. MAXStream to contribute 14% of video payload in Q1 19 By increased of utility of VideoMAX and numbers of MAXStream users, it becomes opportunity for us to monetize thru add-on package Next: Engagement with device manufacturer, smarttv, and setup box will be established as well 15

16 GAMES - Telkomsel Plays In Payment, Direct Distribution, E-Sport And Media Along The Game's Value Chain WHAT WE HAVE DONE STRATGY & INITIATIVES A. Telco Billing.. A. Payment Provides payment infrastructure for moving cash into the game ecosystem. B. Dataplan Bundling.. B. Direct Distribution Distribute games and its items to the users. C. Platforms - Dunia Games.. C. Marketing and Media Media Create or distribute media content D. E-Sport.. D. Marketing and Media e-sport Organize, host and market gaming tournaments online and offline Event Stadium Team 16

17 WHAT WE HAVE DONE STRATGY & INITIATIVES LangitMusik - Has introduce Multimedia experience through video A. Langit Musik Introduce Multimedia experience through Video on LM (Live Streaming and Interactive) A. Langit Musik Continue to enhance LM platform with introduce : UGC capability, distribute to 3rd Party, etc. Start to monetize through new revenue stream: Ads, In Apps Purchase, Pay Per View, etc. B. MusicMax Introduce Data Quota special to access Music Apps Expand to Bundle with Premium (Joox VIP+1GB) B. MusicMax More partnership with Global Partner (Spotify, Tidal, etc) Modify Quota with bundle All Access Data C. RBT Maintain positive YoY growth on Digital Era Introduce various RBT improvement : Pricing, Smart Campaign, etc. C. RBT Introduce Video RBT to bring RBT to Digital Era Develop UGC capability on RBT to acquire more millennials user. 17

18 THANK YOU! 18