INVESTOR SUMMIT. Corporate Presentation PT Telekomunikasi Indonesia Tbk. by djoko soesilo (IRCS)

Transcription

1 INVESTOR SUMMIT Corporate Presentation PT Telekomunikasi Indonesia Tbk. by djoko soesilo (IRCS)

2 Disclaimer This document contains financial conditions and result of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements, by their nature, involve risk and uncertainty that could cause actual results and development to differ materially from those expressed or implied in these statements. TELKOM does not guarantee that any action, which should have been taken in reliance on this document will bring specific results as expected. 2

3 Content A. TELKOM in Brief B. Telco Industry in Indonesia C. Share Price Performance D. Operational Performances E. Financial Performances F. Recent Developments 3

4 TELKOM Ownership and its business As of September 30, 2007 & 2008 Goverment of Indonesia Public Local 7.71 % Foreign % 52.44% 48.8% Mostly US Investors Treasury Stock ( ) Divisions : Regional 1-7, Fixed Wireless Network, Long Distance TLKM 65% SingTel 35% Division : MM Metra, Indonusa, Infomedia Division & Subsidiaries Subsidiaries Fixed Phone Cellular Multimedia Market leader with more than 90% market share No. 1 mobile operator Market Challenger with significant growth Market Position 4

5 Board of Directors President Director Compliance & Risk Management Director Rinaldi Firmansyah Network Solution Director Prasetio Ermady Dahlan Information Technology & CIO Director Finance Director Indra Utoyo Sudiro Asno Human Capital & General Affairs Director Consumer Director Enterprise & Wholesale Director Faisal Syam I Nyoman G Wiryanata Arief Yahya 5

6 Highly Performance Organization lead to Some Domestic and International Recognitions Until September 2008 : Ranked 1 in the 2007 Annual Report Award (ARA) in BUMN Non Financial Listed of Indonesia ARA ISRA IFRA Ranked 1 in ISRA (Indonesia Social Responsibility Award) 2008 The best in Indonesian Financial Reporting Award (IFRA) for company which has a great loyalty to Bapepam-LK Regulation Wealth Added Creator Award 2008, from SWA Magazine, Stren & Co, SWANETWORK for Best Public Companies Base on Wealth Added Index and Best Public Companies 6

7 Content A. TELKOM in Brief B. Telco Industry in Indonesia C. Share Price Performance D. Operational Performances E. Financial Performances F. Recent Developments 7

8 Indonesia : 4 th populous country with steady economic growth Population by Age Wireless Market Revenue 31% 34% 31% Market Revenue (Rp. Tr) Growth (%) 51 24% E Economic Growth 5.32% 5.5% 6.32% 4 th most populous nation Population: approx. 230 million + Young dynamic population Wireless market grew at 5 times economic growth 8

9 Subscribers growth shared among 11 players Subscribers (millions) Cellular PSTN, ISDN, xdsl Fixed Wireless E 2009E 2010E 2011E 2012E 11 Operators and Services Source: Independent Analyst Reports FWL, FWA, BB Cellular Cellular, FWA, BB Cellular, BB Cellular FWA Cellular Cellular Cellular Cellular Satellite 9

10 Content A. TELKOM in Brief B. Telco Industry in Indonesia C. Share Price Performance D. Operational Performances E. Financial Performances F. Recent Developments 10

11 TELKOM as a Biggest Market Cap at IDX Composition of TLKM s Market Cap from Total IDX (in %) % Rp.T Market Cap (%) Market Cap (Rp.T) 50 0 Jan'08 Feb'08 Mar'08 Apr'08 May'08 Jun'08 Jul'08 Agst'08 Sept'08 Oct'08 0

12 Content A. TELKOM in Brief B. Telco Industry in Indonesia C. Share Price Performance D. Operational Performances E. Financial Performances F. Recent Developments 12

13 Continued Growth in Operations... As of September 30, 2007 & 2008 Cellular Business Fixed Wireline Business Fixed Wireless Business Data & Internet Business 36% 184% % % Cellular Subsc in milion Fixed Wireline Subs. in milion Fixed Wireless Subs. in milion ADSL Speedy Subs. in

14 Cellular Business... As of September 30, 2007 & 2008 Increasing MoUand managing RPM TSEL delivering price elasticity for both voice and sms Different pricing strategy for different segment will optimize elasticity factor % % 59 Better network deployment Growth of BTS 07-EoY 08: 26-31% 2008 total BTS will be 25 28K 2008 total TRX will be 300 K 19,767 27% 25, Subscriber in mn MoU in bn minutes BTS 14

15 Fixed Line Business As of September 30, 2007 & 2008 Total Fixed Line Fixed Wireline Business 24% % Fixed wirelinebusiness will focus on enterprise market Despite the declining fixed-voice market revenue pool, enterprise access & connectivity market projected to grow TLKM strategy to reduce declining wirelinerevenue is by expanding on enterprise market Subs. in milion Fixed Wireline Subs. in milion 15

16 Fixed Wireless Business As of September 30, 2007 & % 3,181 TELKOM Flexi Fixed Wireless Available in 321 cities with 3,181 BTS 63% % 1,677 ARPU (Blended) Rp. 40 K Fixed Wireless Subs. in milion MoU in bn seconds BTS (unit) 16

17 Broadband Internet Business... As of September 30, 2007 & % 593 Opportunity in Broadband Indonesia has a huge BB market In 2007 TLKM Group grabbed ~70% of BB subscriber Synovate/APJII estimates 2.5 million internet subscribers & 31 million users in Subscribers in 000 Telkomsel 5% Others 30% TELKOM 65% Market Share of Broadband 17

18 Content A. TELKOM in Brief B. Telco Industry in Indonesia C. Share Price Performance D. Operational Performances E. Financial Performances F. Recent Developments 18

19 Financial Highlights As of September 30, 2007 & 2008 in Rp Tr Operating Revenues 2.2% Operating Expenses 15.5% EBITDA (Rp.T) 6.2% EBITDA Margin 5.2% Net Income 9.2% 63.5% 58.3% NI / Share = Rp

20 Revenues Drivers As of September 30, 2007 & 2008 in Rp Tr. 9.4% 18.3 Data & Internet Speedy subscriber ( 184%) Cellular in Rp Tr. 2.2% MoU ( 234%) Subscriber ( 36%) % 10.8 Network Leased Line Revenue ( 231%) 32.4% Data & Internet Cellular Network Operating Revenue 20

21 Expense Drivers As of September 30, 2007 & 2008 in Rp Tr. 15.5% in Rp Tr. Depreciation Operation, Maintenance & Telecom. Service % % 8.7 Telkomsel Network Infrastructure Growth % 6.5 Telkomsel s BTS ( 27%) Telkomsel s Capacity ( 30%) Affected in increasing frequency fees and repair & maintenance cost for the network equipment Marketing Due to increasing competition (cellular & wireless market) Personnel 36.0% Pension cost increased due to decreasing the discount rate for actuary calculation by 0.25% Operating Expense Depreciation O & M Marketing Personnel 21

22 Capital Expenditure As of September 30, 2007 & 2008 CAPEX Absorption in 3Q/08 (Rp Tr) 14.8 Optimizing Legacy New Wave Infrastructure Support TELKOM Group Telkom Telkomsel (Unconsolidated) 22

23 Consolidated Debt As of September 30, 2007 & 2008 Yen 1,095 Euro 190 (1%) Yen 1,141 Euro (0%) USD 5,132 37% 8% 54% IDR 7,434 USD 3,911 22% 6% 72% IDR 12,913 3Q/2007 Total Rp. 13,851 bn 3Q/2008 Total Rp. 17,964 bn TELKOM hedged its foreign currency exposures through time deposit placements, mainly in US Dollars that covered 24.8% of foreign debts from October 1, 2008 to September 30,

24 Increased Positive Cash Flow... As of September 30, 2007 & 2008 in Rp Tr. Net Cash : Operating Activities Investing Activities Financing Activities Net (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalent at Beginning of Year 3Q/ (11.3) (9.7) (1.7) 8.3 3Q/ (12.7) (8.9) (2.6) 10.1 Cash and Cash Equivalent at End of Period

25 Content A. TELKOM in Brief B. Telco Industry in Indonesia C. Share Price Performance D. Operational Performances E. Financial Performances F. Recent Developments 25

26 Recent Developments Bring world-class Pay TV Services to Indonesia Telkom and Indonusa Telemedia joined forces with PCCW to increase the business growth of Pay TV Services in Indonesia Available on 3 service delivery platform (broadband internet, Satellite TV and mobile content) Will service more than 230 million population of Indonesia Resolution of the Extraordinary General Meeting of Shareholders (September 19, 2008) Approve Mr Bobby A.A. Nazief as Commissioner for 5 years Approve the extension of the term of the Company s Board of Commissioner (until the closing of the Company s Annual General Meeting of Shareholders in 2009) New Share Buyback Program (based on BAPEPAM Regulation) Total funds which be allocated is Rp. 3 Tr The funds will be taken from un-appropriated retained earning as of December 31, 2007 (Rp Tr). 26

27 Thank You by djoko soesilo (IRCS)