TELKOMSEL FINANCIAL PERFORMANCE

A Procurement Perspective

NPD Sharing Session

RAN & Transmission Procurement Telkomsel

8 July 2015

@zaidmuttaqien

a. Capital Structure

b. Financial Activities (Operation Expense, Investing & Dividen)

TELKOMSEL FIANNCIAL PERFORMANCE

1. Financial Report Review

2. Financial Perfomance

3. Telco Ratio and Trend

4. What Next?

a. Revenue & Market

b. Corporate Objective (Revenue, EBITDA & Net Income)

a. EBITDA Margin, Profit Margin, Return on Equity (ROE) & Return on Asset (ROA)

b. Revenue & Cost per BTS

c. New Business Contribution (2nd Curve)

1. FINANCIAL REPORT REVIEW & HIGHLIGHT

Description (IDR Bio) 2010 2011 2012 2013 2014

Debt 23,137 20,347 19,085 25,514 26,575

Equity 34,206 38,376 43,832 47,821 51,612

a. Financial Position (Capital Structure)

Description (IDR Bio) 2011 2012 2013 2014

Debt ISAT 34263 35829 38003 39058

Equity ISAT 18515 18861 16517 14195

Description (IDR Bio) 2011 2012 2013 2014

Debt XL 17,478 20,086 24,977 49,746

Equity XL 13,693 15,370 15,300 13,961

Solvency Telkomsel paling kuat (Debt/Asset Ratio) Indosat paling rawan Exposure Financial Risk XL Dominasi Longterm Debt (akuisisi Axis) WACC (Weighted Average Capital Cost)

68% 32%

54% 46%

31% 69%

1. FINANCIAL REPORT REVIEW & HIGHLIGHT

b. Cash Flow (Financial Activities)

Description (IDR Bio) TSEL XL ISAT

Revenues 66,252 23,569 24,085

Expenses 40,563 17,000 23,412

Investing 11,052 7,095 7,044

y 2014

2 FINANCIAL PERFORMANCE

a. Revenue Growth

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Revenue 21,133 29,145 36,670 37,199 44,443 45,567 48,733 54,531 60,031 66,252

Opex 8,772 12,836 16,791 20,401 25,227 28,210 31,065 33,538 36,761 40,563

Capex 8,438 13,144 13,170 12,322 13,364 9,870 7,665 13,528 14,445 11,052

2. FINANCIAL PERFORMANCE

b. Market Growth

2. FINANCIAL PERFORMANCE

c. Revenue, EBITDA & Net Income Growth (Corporate Objective)

2008 2009 2010 2011 2012 2013 2014 AVG

Revenue growth 1% 19% 3% 7% 12% 10% 10% 9%

EBITDA growth -6% 14% -3% 4% 12% 10% 10% 6%

Net Income growth -16% 15% -6% 4% 23% 10% 12% 6%

Pertumbuhan Double Digit (Revenue, EBITDA & Net Income

3. TELCO RATIOS & TRENDS

a. Financial Performance Ratios

Description 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EBITDA Margin 73% 71% 65% 60% 61% 58% 57% 56% 56% 56%

Profit Margin 41% 38% 35% 28% 30% 27% 26% 29% 29% 29%

Return on Asset 35% 38% 33% 24% 24% 21% 22% 26% 25% 26%

Return on Equity 55% 55% 55% 43% 45% 38% 35% 38% 38% 39%

Notes:

1 EBITDA divided by Revenues

2 Net Income divided by Revenues

3 Net Income divided by Average Total Assets

4 Net Income divided by Average Total Equity

Nilai Ratio yang mengukur kinerja perusahaan mengalami trend pemenurunan

3. TELCO RATIOS & TRENDS

b. New Business Revenue Performance

Pertumbuhan dan porsi New Business Revenue (Data & Digital Business) competitor lebih tinggi

3. TELCO RATIOS & TRENDS

c. Telco Revenue & Cost per BTS

Trend penurunan Revenue per BTS lebih besar dari Penurunan Cost per BTS

4. WHAT NEXT?

A. INCREASE REVENUE VS REDUCE COST

Internet of Things (IoT)

Remote Access Services

Mobile UC and Collaboration

Mob. Enterprise infrastructure software

Mobile Enterprise services

Video Conferencing

Large File Transfers

Mobile Payment

Capital Expenditure

Cost Expenditure

4. WHAT NEXT?

B. CAPITAL EXPENDITURE (CAPEX)

27 euro/sub

140,000,000.00 sub

42,000,000 30% sub LTE penetration

1,134,000,000.00 Capex euro

15,876,000,000,000.00 Capex IDR

Expense IDR Bio Nilai Porsi

Operation & Maintenance 15,127 42%

Depreciation & Amortization 11,672 32%

Cost of Interconnection 3,157 9%

Personel Expense 2,687 7%

Marketing 2,451 7%

General & Others 1,292 4%

y 2014 36,386

OM IDR Bio Nilai Porsi

Transmission 3,733 25%

Network Space Rental 3,489 23%

Frequency 3,086 20%

Repair & Maintenance 2,821 19%

Power Supply 1,998 13%

y 2014 15,127

4. WHAT NEXT ?

C. OPERATIONAL EXPENDITURE (OPEX)

B. titipan

OM in IDR Bio 2010 2011 2012 2013 2014

Transmission 2,526 2,625 2,649 3,159 3,733

Network Space Rental 770 1,259 1,673 2,177 3,489

Frequency 2,962 2,695 2,904 3,011 3,086

Repair & Maintenance 2,040 1,964 2,157 2,728 2,821

Power Supply 1,577 1,769 1,793 1,918 1,998

TOTAL 9,875 10,312 11,176 12,993 15,127

4. WHAT NEXT ?

D. OM Growth

Kenaikan average NSR 5 tahun terakhir 47%

4. WHAT NEXT ?

D. COST REDUCTION OPPORTUNITY