Telkomsel Corporate Presentation Q1-2014
0 AGENDA
1. Performance Highlights Q1-2014
2. Brief Corporate Strategy
3. 2014 Guidance
1 Telkomsel Profile
Profile
SingTel • Operating since 1995, a subsidiary of Telkom Indonesia (65%) and SingTel (35%) 35% • Largest Customer base of 65% 132.7 million • 4,697 employees Telkom
Brands Network Ownership of the brands with the top brand Continue to roll out Network equities in Indonesia • 74,326 BTS on-air covering ± 95% of population • ± 300 Broadband Cities
2 2 Source: Management Report Telkomsel, 1Q14 Solid Revenue Growth, Maintained Healthy Margins
YEAR-ON-YEAR ACHIEVEMENT
REVENUE EBITDA NET INCOME CAPEX TO In Trillion +10% In Trillion In Trillion REVENUE 15.3 8.5 13.9 7.9 Digital 31% 3.4 4.3 4.4 2.6 16.3% Business 14.4% 7% 2% 13%
Legacy 11.4 5% 11.9 Q1-13 Q1-14 Q1-13 Q1-14 Q1-13 Q1-14 Margin Margin Q1-13 Q1-14 57% 55% 31% 29%
TOTAL ASSETS CUSTOMER BASE TOTAL BTS ROLL OUT TOTAL BTS ON AIR In Trillion In Million In Thousand In Thousand 75.9 132.7 +33% +29% 67.3 120.6 4.5 74.3 3.4 57.7 3G 3G 10 ppt 41% 10 ppt 79% 31% 69% 13% 10% 2G -10ppt 2G 69% -10ppt 59% 31% 21% Q1-13 Q1-14 Q1-13 Q1-14 Q1-13 Q1-14 Q1-13 Q1-14
Debt to Equity Ratio (DER)*: Free Cash Flow Mar-14: 3% (Mar-13: 6%) Mar-14: Rp.4.0tn (Mar-13: Rp.5.1tn) *) excluding obligation for finance lease 3
1Q14 Continue to grow Digital Business
YEAR-ON-YEAR ACHIEVEMENT Broadband: DIGITAL BUSINESS DATA ENABLED REVENUE CUSTOMER DATA TRAFFIC In Trillion +31% In Million In TB 3.4 42.7 63.0 Telkomsel BlackBerry Flash 2.6 49.9
32% 3.1 17.6 Digital Services: Broadband 2.3 26% 142% - Digital Lifestyle - Digital Advertising Digital 23% - Digital Payment & Mobile Banking Services 0.3 0.3 Q1-13 Q1-14 Q1-13 Q1-14 Q1-13 Q1-14
3G DEVICE 3G BTS 3G BTS CAPABLE ROLL OUT ON AIR In Thousand In Thousand In Thousand 28.2 3.5 30.6
18.1 2.3 17.8
56% 52% 72%
Q1-13 Q1-14 Q1-13 Q1-14 Q1-13 Q1-14
4 AGENDA
1. Performance Highlights Q1-2014
2. Brief Corporate Strategy
3. 2014 Guidance
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Maintain Growth Through 5-Part Strategies
Exploit voice and SMS services by enhancing micro-cluster 1 based pricing and providing the best class of network quality
Strengthen the broadband services through a focus on driving 2 the number of data users, smartphone penetration and network quality and coverage
Trigger the digital ecosystem through the creation of
innovative and differentiated digital products and deliver new 3 revenue streams from digital lifestyle, digital payment, digital
advertising and M2M
Drive investment in innovation by investing in and incubating 4 digital platform businesses
Acquire selectively as a part of the Telkom Group’s strategy by
5 partnering with regional operators and mobile data/broadband service providers
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AGENDA
1. Performance Highlights Q1-2014
2. Brief Corporate Strategy
3. 2014 Guidance
7 2014 Telkomsel Guidance
Revenue Inline with or above market growth
EBITDA Margin Slightly decline compared to FY13
CAPEX 20% over revenue
ARPU Slightly increase compare to FY13
BTS roll out ± 1,000 BTS / month (75% are 3G BTS)
8 Telkomsel ... ”Karya Tiada Henti Membangun Negeri”
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