First Half 2020 Results 29 July 2020 PT Indosat Tbk ( Indosat - - PowerPoint PPT Presentation

First Half 2020 Results

29 July 2020

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• PT Indosat Tbk ( “Indosat Ooredoo” or “Company” ) cautions investors that certain statements contained in this

document state its management's intentions, hopes, beliefs, expectations, or predictions of the future are forward-looking statements

• The Company wishes to caution the reader that forward-looking statements are not historical facts and are only

estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to:

• The Company’s ability to manage domestic and international growth and maintain a high level of customer

service

• Future sales growth
• Market acceptance of the Company’s product and service offerings
• The Company’s ability to secure adequate financing or equity capital to fund our operations
• Network expansion
• Performance of the Company’s network and equipment
• The Company’s ability to enter into strategic alliances or transactions
• Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment
• Regulatory approval processes
• Changes in technology
• Price competition
• Other market conditions and associated risks
• The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of

future events, new information, or otherwise

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Key Highlights

40% increase in Daily Email Traffic Over 93% employees checking in for work daily

91 %

Employees feel they work with same or more energy during WFH

82 %

Employees feel HAPPY during WFH Over 1000 daily online meetings

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Performance growth trends maintained in 1H 2020. Revenue up by 9.4% YoY and EBITDA up by 22.5% YoY.

57.2 Mn

+0.9% YoY

40.4%

+4.3 ppt YoY

31.4

(IDR ‘000)

+12.4% YoY

Key Highlights

13,452 Bn

(IDR)

+9.4% YoY

• 341.1Bn

(IDR)

• 9.2Bn YoY

5,430 Bn

(IDR)

+22.5% YoY

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H119 H120 Q120 Q220 12,292 6,929 13,452 6,523

+9.4% +6.2%

H119 H120 Q220 5,430 Q120 4,433 2,380 3,050

+22.5% +28.2%

H119 Q220 Q120 H120 44.0% 36.1% 40.4% 36.5% Q220 H119 H120 Q120

In IDR Billion In IDR Billion In IDR Billion In IDR Billion

• Solid revenue growth driven by data surge
• EBITDA improvement driven by higher revenue and cost optimisation

Financial Highlights

• 9.2Bn

+870.1Bn

• 332
• 341
• 606

265

+4.3 ppt +7.5 ppt

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H119 H120 Q120 Q220 9,962 11,141 5,372 5,769

+11,8%

+7,4%

1,007 Q220 H119 H120 Q120 1,988 2,036 1,029

+2.4% +2.1%

In IDR Billion In IDR Billion In IDR Billion

Financial Highlights

• Strong growth continues in cellular revenue, 11.8% YOY and 7.4% QoQ
• Fixed data grows despite challenging situation
• Fixed voice degrowth , mainly attributed to COVID-19 situation

342 274 144 130 H119 H120 Q120 Q220

• 19.8%
• 9.4%

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H119 H120 Q120 Q220 7,859 8,022 4,143 3,879

+2.1%

• 6.4%

In IDR Billion

Financial Highlights

• Personnel Expenses growth implies Organization rightsizing result
• Seasonality in Marketing Expenses
• Further cost optimisation maintained, normalized growth 4.8%

In IDR Billion 1H 2019 1H 2020 % Change 1Q 2020 2Q 2020 % Change Cost of Services 5,853.5 5,764.4

• 1.5%

2,866.4 2,898.0 1.1% Personnel 1,000.7 1,432.4 43.1% 893.2 539.2

• 39.6%

Marketing 557.9 541.7

• 2.9%

249.4 292.3 17.2% General & Administration 446.6 283.2

• 36.6%

134.1 149.1 11.2% Total OPEX 7,858.7 8,021.7 2.1% 4,143.1 3,878.6

• 6.4%

Depreciation & Amortization 4,710.7 4,961.4 5.3% 2,467.6 2,493.8 1.1% Other Operating Income/(Expenses)

• 1,074.9
• 619.2
• 42.4%
• 283.9
• 335.3

18.1% Total Expenses 11,494.5 12,363.9 7.6% 6,326.8 6,037.1

• 4.6%

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In IDR Billion

Financial Highlights

• Stronger balance sheet resulted in improved financial ratio
• Committed to maintain a ratio below the bank covenant value of 4x Net Debt to EBITDA

20,885 14,625 15,306 14,625 2.81 1.35 1.52 1.35

• 2.00

H1 19 H1 20 Q1 20 Q2 20

• 5,000

Net Debt Net Debt to EBITDA

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In IDR Billion

Financial Highlights

• Accelerated network rollout in Q2’20
• IO on track to meet 2020 network expansion plans

In %

4,204 3,262 634 2,628

H1 19 H1 20 Q1 20 Q2 20

34.2% 24.2% 9.7% 37.9%

H1 19 H1 20 Q1 20 Q2 20

• 22.4%

+314.4% *excluding Right of Use assets under PSAK 73

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Continued growth in key operational KPIs

57.2 Mn

+0.9% YoY

29.5

• 16.8% YoY

31.4

(IDR ‘000) +12.4% YoY

Key Highlights

2,217

(‘000 TB) +61% YoY

52,776

+28k YoY

124,944

+39k YoY

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Key Highlights

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Q120 H119 57.2 H120 Q220 57.2 56.7 56.2 +0.9% +1.8% H119 Q120 Q220 H120 33.2 27.9 31.4 29.6 +12.4% +12.1%

In Million In IDR ‘000 In TB

Operational Highlights

• 57.2 million subscribers, growth of 0.9% YoY, 1 mn subscriber addition in Q2’20
• Continued growth in ARPU, over 12% YoY & QoQ ARPU growth
• Data traffic continues on sustainable growth trajectory

H120 Q120 H119 Q220 2,216,632 1,378,806 1,015,373 1,201,259 +60.8% +18,3%

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124,9 H119 H120 86,4 Q120 Q220 133,2 124,9 H120 H119 24,9 52,8 Q120 Q220 52,2 52,8 H119 45,4 H120 40,1 Q120 Q220 51,0 45,4 H119 H120 21,4 26,8 Q120 Q220 30,0 26,8

In ‘000 Count

• Accelerating 4G network roll-out
• 27,902 4G BTS added
• Initiated 3G Spectrum refarming

Operational Highlights

In ‘000 Count In ‘000 Count In ‘000 Count