6-K 1 infomemofy2010telkom.htm PT TELEKOMUNIKASI INDONESIA infomemofy2010telkom.htm - Generated by SEC Publisher for SEC Filing  

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16

 

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of March, 2011

 

Perusahaan Perseroan (Persero)

PT Telekomunikasi Indonesia Tbk.

(Exact name of Registrant as specified in its charter)

 

Telecommunications Indonesia

(a state-owned public limited liability company)

(Translation of Registrant’s name into English)

 

 

Jalan Japati No. 1 Bandung-40133 INDONESIA

 

(Address of principal executive office)

 

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.]

 

Form 20-F þ             Form 40-F  ¨ 

 

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934] 

 

Yes ¨           No þ 

 

[If “yes” is marked, indicate below the file number assigned to the registrant in connection with  

Rule 12g3-2(b): 82-                    ]   

 

 

 

 

F-6 

 
 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be

signed on behalf by the undersigned, thereunto duly authorized.

 

 

Perusahaan Perseroan (Persero)

PT TELEKOMUNIKASI INDONESIA,TBK

 

 

 

 

 

 

(Registrant)

 

 

Date

April 1, 2011

 

 

By     /s/ Agus Murdiyatno

 

 

 

 

 

 

 

 

(Signature)

 

 

 

 

 

 

 

 

 

 

Agus Murdiyatno

 

 

 

 

 

Vice President Investor Relation

 

  

 

 

 

 

 

THE YEAR END 2010 RESULTS (AUDITED)

 

  

FY/10

 
 

Highlights

n Cellular customer base grew strongly by 15% year on year (YoY) to 94.0 million customers in December 2010 with a total net add of 12.4 million.

n Data, internet and IT services was well performed well, contributing 28.9% to total revenues in 2010 the revenue increased by 23.1% YoY.

n Our fixed broadband service, TELKOMSpeedy, recorded a 38.0% growth in revenues and a 44.0% in the number of subscribers to 1,649K.

n FY10 Operating Revenue reached Rp68,629 billion.

 

 

TICKERS: 

NYSE       :    TLK

LSE          :    TKIA

IDX          :    TLKM

 

ISSUED SHARES:

20,159,999,280 shares

 

SHAREHOLDER COMPOSITION:

Govt. of Indonesia   : 52.47%

Public                        : 47.53%

(exclude treasury stock 490,574,500  shares)

(As of Dec 31, 2010)

 

CONVERSION RATES (US$ 1.00):

2009 = Rp9,425.0 (Dec 31,2009)

2010 = Rp9,010.0 (Dec 31,2010)

 

OPERATIONAL HIGHLIGHT

 

 

Descriptions

YoY

  

QoQ

  

 

FY09

FY10

Growth

  

Q1/10

Q2/10

Q3/10

Q4/10

Growth

 

(‘000)

(‘000)

(%)

  

(‘000)

(‘000)

(‘000)

(‘000)

(%)

 

Fixed Line:

  

  

  

  

  

  

  

  

  

 

LIS Wireline

 8,377 

 8,303 

(0.9) 

  

 8,382 

 8,397 

 8,334 

 8,303 

(0.4)

 

LIS Wireless (Flexi):

 15,139 

 18,161 

20.0 

  

 15,948 

 15,896 

 16,756 

 18,161 

8.4 

 

          - Post paid

 649 

 546 

(15.8) 

  

 594 

 565 

 554 

 546 

(1.3)

 

          - Prepaid

 14,490 

 17,615 

21.6 

  

 15,354 

 15,330 

 16,202 

 17,615 

8.7 

 

Total

 23,516 

 26,464 

12.5 

  

 24,330 

 24,293 

 25,090 

 26,464 

5.5 

 

Cellular:

  

  

  

  

  

  

  

  

  

 

          - Post paid

 2,035 

 2,127 

4.5 

  

 2,047 

 2,098 

 2,101 

 2,127 

1.2 

 

          - Prepaid

 79,609 

 91,884 

15.4 

  

 79,903 

 86,218 

 91,034 

 91,884 

0.9 

 

Total

 81,644 

 94,011 

15.1 

  

 81,950 

 88,316 

 93,135 

 94,011 

0.9 

 

  

  

  

  

  

  

  

  

  

  

 

Broadband:

  

  

  

  

  

  

  

  

  

 

        - Fixed broadband / Speedy

 1,145  

 1,649  

44.0

  

 1,283  

 1,416  

 1,530  

 1,649  

7.8

 

        - Mobile broadband / Flash

 1,665  

 3,796  

128.0

  

 2,139  

 2,976  

 4,278  

 3,796  

(11.3)

 

        - Blackberry

 207  

 966  

366.7

  

 280  

 456  

 573  

 966  

68.9

 

 

FINANCIAL HIGHLIGHT  

 

 

TELKOM GROUP

  

  

  

  

  

  

  

  

  

 

 

YoY

  

QoQ

 

Key Indicators

FY/09*

FY/10

Growth (%)

  

Q1/10*

Q2/10*

Q3/10*

Q4/10

Growth (%)

 

Op. Revenues (Rp Bn)

 67,678 

 68,629 

 1.4 

  

 16,356 

 17,351 

 17,601 

 17,321 

(1.6)

 

Op. Expenses (Rp Bn)

 44,890 

 46,138 

 2.8 

  

 11,037 

 11,334 

 11,744 

 12,023 

2.4

 

Op. Income (Rp Bn)

 22,788 

 22,491 

 (1.3) 

  

 5,320 

 6,017 

 5,858 

 5,296 

(9.6)

 

EBITDA (Rp Bn)

 36,762 

 37,103 

 0.9 

  

 9,059 

 9,700 

 9,478 

 8,866 

(6.5)

 

EBITDA Margin

54%

54%

 (0.2) 

  

55%

56%

54%

51%

(2.7)

 

Net Inc. (Rp Bn)

 11,399 

 11,537 

 1.2 

  

 2,777 

 3,227 

 2,930 

 2,603 

(11.1)

 

Net Inc./Share(Rp)

 580 

 587 

 1.2 

  

 141 

 164 

 149 

 133 

(11.1)

 

Net Inc./ADS(Rp)

 23,181 

 23,462 

 1.2 

  

 5,646 

 6,562 

 5,959 

 5,295 

(11.1)

 

  

  

  

  

  

  

  

  

  

  

 

 

*as restated

 

TELKOMSEL

  

  

  

  

  

  

  

  

  

 

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 Indonesia does not guarantee that any action, which may have been taken in reliance on this document will bring specific results as expected.

 

Investor Relations

PT. TELEKOMUNIKASI INDONESIA Tbk

Grha Citra Caraka, 5th floor
Jl. Gatot Subroto No.52, Jakarta

Phone                       :       62 21 5215109

Fax                             :       62 21 5220500

Email                          :       investor@telkom.co.id

Website                     :       www.telkom.co.id

 

  

YoY

  

QoQ

 

Key Indicators

FY/09*

FY/10

Growth (%)

  

Q1/10*

Q2/10*

Q3/10*

Q4/10

Growth (%)

 

Op. Revenues (Rp Bn)

 44,443 

 45,567 

 2.5 

  

 10,775 

 11,393 

 11,916 

 11,483 

              (3.6)

 

Op. Expenses (Rp Bn)

 25,653 

 28,386 

 10.7 

  

 6,712 

7,109 

 7,462 

 7,103 

              (4.8)

 

Op. Income (Rp Bn)

 18,791 

 17,181 

 (8.6) 

  

 4,063 

 4,284 

 4,454 

 4,380 

              (1.6)

 

EBITDA (Rp Bn)

 27,332 

 26,598 

 (2.7) 

  

 6,400 

 6,597 

 6,841 

 6,760 

              (1.2)

 

EBITDA Margin

61%

58%

 (3.1) 

  

59%

58%

57%

59%

 2.0 

 

Net Inc. (Rp Bn)

 13,160 

 12,362 

 (6.1) 

  

 2,838 

 3,088 

 3,264 

 3,172 

              (2.8)

 

*as restated

 

 

 

 

 

 

 

 

 

 

 

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 1 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

PT. TELEKOMUNIKASI INDONESIA, Tbk.

THE YEAR END 2010 RESULTS (AUDITED)

 

The following analysis and discussion is based on our financial statements for the year ended on December 31, 2009 and December 31, 2010 respectively. The reports have been submitted to the Indonesia BAPEPAM-LK, the Indonesia Capital Market and Financial Institutions Supervisory Agency, and to the US Securities and Exchange Commission.

 

OPERATIONAL RESULTS

Cellular Service

We continued our network coverage expansion and capacity and quality enhancement to improve our services to customers. In 2010, we added 5,565 new BTS to reach a total of 36,557 BTS across the nation. Through Universal Service Obligation (USO) program, we have also served more than 25,000 remote villages, while our Telkomsel Merah Putih program has provided coverage in more than 200 sites in isolated areas and 15 ships of PT Pelayaran Indonesia (PELNI). On broadband network deployment, we have served 25 cities in Indonesia using HSDPA/HSPA technology.

 

In the last quarter of 2010, competition was heightened with operators repackaging their products by offering more aggressive pricing and providing more minutes and SMS to attract more customers. Although this intensified competition impacted our performance in 4Q10, Telkomsel remained leading the market by 46% share of customers in December 2010 with 94.01 million of customers. We recorded 12.37 million net add in FY10.  

  

Customer Base  

In the fourth quarter of 2010, Telkomsel added 872,000 new customers, which in total stretched the customer base net-add during 2010 to 12.37 million customers. The launch of Kartu As Rp20/menit promotional programs in 4Q10 was positively responded by the market and deepened our market penetration. At the end of 2010, Telkomsel customer base reached 94.01 million customers, consisting of 2.13 million postpaid and 91.88 million prepaid customers. Telkomsel’s customer base grew by 15% from last year, that was driven mainly by the ongoing expansion of the network coverage, continuous product and service innovation and the growth of our data business. Estimated market share as of December 2010 was approximately 46% of the full mobility market.

 

Telkomsel’s BlackBerry customers reached 966 thousand or grew by 366.7% and Flash customers was 3,796 million or grew by 128% in December 2010.

 

Minutes of Use (MOU) & RPM

The MOU (chargeable) showed an increase in 4Q10 that booked 37 billion minutes, an increase of 12% from 3Q10. After a declining trend from 3Q09 until 1Q10, MoU has shown a steady growth since 2Q10. However, total MoU generated in 2010 was still slightly lower than MoU in 2009, which declined 1% to 128.6 billion minutes.

Due to intensified competition, average RPM in 4Q10 was lower compared to 3Q10, which has brought down the RPM for FY 10 to the level of Rp220. It was still slightly higher compared to last year.

 

SMS & Revenue per SMS (RPS)

We recorded 26.1 billion chargeable SMS records in 4Q10, a decrease of 1% from earlier quarter. For FY10, chargeable SMS traffic reached 94.3 billion records, 6% lower than the previous year figure of 100.4 billion records, as an impact of more aggressive competition on SMS promotional package in 2010.

The revenue per SMS (chargeable only) increased from previous year by 5% to Rp109 in FY10. This is due to the optimization of SMS tariff plan.

 

Despite the declining growth rate of our voice and SMS traffic, data traffic/payload has shown a strong growth during the last few years in line with the growth of our broadband business. It grew almost 50% year-on-year in 2010.

 

ARPU

Blended ARPU for FY10 was Rp42K, which was 12% lower than the ARPU during the same period last year. The ARPU from Q1 to Q3 2010 was quite stable, which was around 43K. The decline of 4Q10 ARPU was attributable to the decline of our prepaid products ARPU due to the intensified competition.

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 2 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

 

Network Expansion  

During FY10, Telkomsel added 5,565 units new BTS (including 2,901 units 3G-BTS). As of December 31, 2010, there were 36,557 units BTS on air, increased 18% from the same period last year.

 

New Products and Programs

·        In October 2010, a new package of 100 minutes call with attractive pricing in simPATI Freedom was introduced. By registering through *999# access, customers can have 100 minutes calls consist of 98 minutes for on-network and 2 minutes for off-net network starting from 00:00-17:00 hours every day.

·        Rp20/minute promotion from Kartu As was modified in October 2010. Customer can have tariff of Rp20/minute at the 1st minute and Rp1,000/minute will be charged after Rp600 or 30 minutes was reached.

·        A new kartuHALO package HALO Fit was introduced in December 2010 with five pricing schemes adjusted to customers monthly spending patterns. It offers attractive pricing (from Rp20K to Rp300K per month) and additional minutes, SMS and data access with monthly fee.

·        simPATI Double TalkMania program was launched in December 2010. By daily registration of Rp2,000 (day time, 01:00-18:00 hours) and Rp2,500 (night time, 18:00-24:00 hours), this program provides 50-100 minutes call to Telkomsel numbers and additional 50-100 SMS to all operators.

·        In December 2010, additional offer for Rp20/minute promotion from Kartu As was launched. It gives additional 5,000 SMS to all operators after sending one chargeable SMS of Rp150, starting from 00:00-16:59 hours.

·        We launched iPhone 4 in December 2010 with variety packages and consist of free minutes, SMS/MMS and data access.

·        In December 2010, Rp0/minute promotion from Kartu As for the first 30 seconds was introduced. New customers that activate the starter pack from December 22, 2010 will receive special tariff of Rp0 at the first 30 seconds and Rp10/30 seconds afterwards from 00:00-16:59 hours. Different tariff calculation applies for each zone from 17:00-23:59 with 30 minutes limitation for each call. Additional 5,000 SMS to all operators are also provided.

 

In the following table, we present a YoY and QoQ comparison for our cellular performance:

 

Unit

YoY

  

QoQ

  

FY09

FY10

Growth (%)

 

Q1/10

Q2/10

Q3/10

Q4/10

Growth (%)

CUSTOMER BASE

  

  

  

  

  

  

  

  

  

  

Customer Base

  

  

  

  

  

  

  

  

  

  

     Postpaid (kartuHALO) 

Subs (000)

 2,035 

 2,126 

4.5 

 

 2,047 

 2,098 

 2,101 

 2,127 

1.2 

     Prepaid (simPATI  + Kartu As)

Subs (000)

 79,609 

 91,884 

15.4 

 

 79,903 

 86,218 

 91,034 

 91,884 

0.9 

     Total

Subs (000)

 81,644 

 94,010 

15.1 

 

 81,950 

 88,316 

 93,135 

 94,011 

0.9 

Net Add

  

  

  

  

  

  

  

  

  

  

     Postpaid (kartuHALO) 

Subs (000)

94 

92 

(2.1)

 

12 

52 

3 

25 

733.3 

     Prepaid (simPATI  + Kartu As)

Subs (000)

 16,249 

 12,275 

(24.5)

 

 294 

 6,315 

 4,816 

 847 

(82.4)

     Total

Subs (000)

 16,343 

 12,367 

(24.3)

 

 306 

 6,367 

 4,819 

 872 

(81.9)

MOU (chargeable)*

Bn minutes

 130.3 

 128.6 

(1.3)

 

 27.7 

 30.8 

 33.1 

 37.0 

11.8 

SMS (chargeable)

Bn units

100.4 

94.3 

(6.1)

 

21.0 

20.7 

26.4 

26.1 

(1.1) 

  

  

  

  

  

 

  

  

  

  

  

ARPU

  

  

  

  

 

  

  

  

  

  

Total (12 months average)

  

  

  

  

 

  

  

  

  

  

     Postpaid (kartuHALO) 

Rp.'000 per mo.

214 

211 

 (1.4) 

 

208 

211 

212 

 206 

 (2.8) 

     Prepaid (simPATI + Kartu As)

Rp.'000 per mo.

43 

38 

 (11.6) 

 

39 

39 

39 

 36 

 (7.7) 

     Blended

Rp.'000 per mo.

48 

42 

 (12.5) 

 

43 

43 

43 

 40 

 (7.0) 

  

  

  

  

  

  

  

  

  

  

  

NETWORK DATA

  

  

  

  

  

  

  

  

  

  

Network Expansion

  

  

  

  

  

  

  

  

  

  

     Base stations installed (GSM/DCS/3G)

Unit

 30,992 

 36,557 

 18.0 

 

 32,243 

 34,005 

 35,316 

 36,557 

 3.5 

  

  

  

  

  

 

  

  

  

  

  

EMPLOYEE DATA

  

  

  

  

 

  

  

  

  

  

     Total employees **)

person

 4,205 

 4,421 

 5.1 

 

 4,229 

 4,313 

 4,354 

 4,421 

 1.5 

     Efficiency ratio

Subs/employee

 19,416 

 21,265 

 9.5 

 

 19,378 

 20,477 

 21,391 

 21,265 

 (0.6) 

  

  

  

  

  

  

  

  

  

  

  

*)   Adjusted

**) Excluding Board of Directors

  

  

  

  

  

  

  

  

  

  

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 3 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

Broadband Services

Fixed Broadband (Speedy)

Customer Base

We have been providing fixed line-based broadband internet access using ADSL technology since 2004 under the brand name “Speedy”. As of December 31, 2010, we had 1.6 million Speedy customers, representing 44.0% growth from 1.1 million Speedy customers as of December 31, 2009. Since May 2008, Speedy had a speed of up to 3 Mbps.

 

ARPU

ARPU for FY10 was Rp215K, representing 16% decrease from Rp256K in FY09.

 

New Products and Programs

In line with our new business portfolio (Telecommunication, Information, Media and Edutainment - TIME) and adjusted to current market conditions, Speedy with its tagline “Lead Your Life”, is bundling the service with other TELKOMGroup offerings. Special tariff promo for Speedy package includes “Socialia – 384Kbps”, “Load – 512Kbps”, “Familia – 1Mbps”, “Executive – 2Mbps” and “Biz – 3Mbps”.

 

Mobile Broadband (Flash)

Customer Base

Telkomsel provides a mobile broadband product under the brand name “Flash”. As of December 31, 2010, we had 3.8 million Flash customers, representing 128.0% growth from 1.7 million customers as of December 31, 2009. To support mobile broadband service, our backbone infrastructures have been used by Telkomsel as part of our synergy.

 

New Products and Programs

As official partner for Apple in December 2010, we introduced “Flash Unlimited for iPad” targeting market on potential prepaid users in Indonesia.

 

Fixed Wireline Services

Customer Base

As of December 31, 2010, our total number of fixed wireline in service has remained flat at 8.3 million subscribers, representing a 1% decrease of from 8.4 million subscribers in FY09. We consistently maintained our leading position as a dominant player in the fixed wireline market with approximately 99% market share.

ARPU

Fixed wireline  ARPU for FY10 was RP105K, representing a 1% decrease from Rp109K in FY09.

 

New Product and Program

We still continued our reward points program namely Telkom Point Rejeki Tumpah (“TPRT”) introduced since Q2/2010. TPRT is a continuation of the program Telepon Rumah Rejeki Tumpah (“TRRT”) designed to increase customer loyalty among our fixed wireline, TELKOMSpeedy and YesTV customers. This rewards program allows customers to exchange accumulated points for gifts or to enter prize draws.

 

Fixed Wireless Service (Flexi)

Customer Base  

We offer CDMA-based fixed wireless access with limited mobility under the "TELKOMFlexi" or “Flexi” brand. As of December 31, 2010, Flexi obtained 1,406K net additional subscribers, bringing total subscribers to 18.2 million. We maintained our leading position as a dominant player in the fixed wireless market.

ARPU

ARPU (blended) for this period was Rp16K, a 28.8% decrease from Rp22K in FY09. Revenue per Minute (RPM) was Rp177, a 3.5% decreased from Rp183 in FY09. Total MoU decreased by 25.3% from 16.0 billion minutes in FY09 to 12.0 billion minutes in FY10.

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 4 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

Network capacity

During 2010, total number of BTS increased by 1.8% to 5,641 units. As of December 31, 2010, 370 cities have been covered by these BTSs.  The proportion of BTSs located in Java and outside Java is about 35% and 65%, respectively.

 

New Products and Programs

·        “Flexi Chatting” facilitates the exchange of chat messages amongst users of different social media, such as Facebook, Twitter, Yahoo Messenger, Google Talk and TELKOM’s Flexi Messenger.

·        “Flexi ngROOMpi” enable our customers to talk with others at once easily (by dialing *55*0) at affordable tariff (Rp49/minute, one tariff).

·        In “Flexi Irit Mingguan”, customers pay Rp5,000 in exchange for a Rp500,000 worth of bonus minutes which can be used for Flexi on-net calls (local and DLD 01017) during seven days after registration.

 

The following table presents YoY and QoQ of comparison Flexi performance:

  

UNIT

YoY

  

QoQ

  

FY09

FY10

Growth (%)

  

Q1/10

Q2/10

Q3/10

Q4/10

Growth (%)

Customer Base

  

  

  

  

  

  

  

  

  

  

Classy/Postpaid

SSF('000)

 649 

 546 

(15.8) 

  

594 

565 

554 

 546 

(1.3)

Trendy/Prepaid

SSF('000)

 14,490 

 17,615 

21.6 

  

15,354 

15,330 

16,202 

 17,615 

8.7

Total Blended

SSF('000)

 15,139 

 18,161 

20.0 

  

15,948 

15,896 

16,756 

 18,161 

8.4

  

  

  

  

  

  

  

  

  

  

  

Net additional

  

  

  

  

  

  

  

  

  

  

Classy/Postpaid

SSF('000)

 (82) 

 (103) 

25.1 

  

(55) 

(29)

(12) 

(7)

37.6

Trendy/Prepaid

SSF('000)

 2,496 

 3,125 

25.2 

  

864 

(24)

872 

 1,413 

62.1

Total Blended

SSF('000)

 2,414 

 3,022 

25.2 

  

809 

(53)

860 

 1,406 

63.4

  

  

  

  

  

  

  

  

  

  

  

ARPU

  

  

  

  

  

  

  

  

  

  

Classy/Postpaid

Rp('000)

 85 

 85 

(0.2) 

  

83 

88 

84 

 84 

(0.8)

Trendy/Prepaid

Rp('000)

 19 

 13 

(30.1) 

  

15 

14 

14 

 11 

(22.0)

Total Blended

Rp('000)

 22 

 16 

(28.8) 

  

17 

17 

16 

 13 

(19.4)

  

  

  

  

  

  

  

  

  

  

  

MoU (Minute of use)

mn minutes

 16,001 

 11,957 

(25.3) 

  

3,073 

3,080 

3,045 

 2,759 

(9.4)

SMS

mn messages

4,939 

 3,981 

(19.4) 

  

1,073 

1,030 

943 

 934 

(0.9)

  

  

  

  

  

  

  

  

  

  

  

NETWORK

  

  

  

  

  

  

  

  

  

  

BTS

BTS

 5,543 

 5,641 

1.8 

  

5,543 

5,552 

5,580 

 5,641 

1.1 

Coverage

Cities

 370 

 370 

- 

  

370 

370 

370 

 370 

- 

 

FINANCIAL RESULTS

TELKOM GROUP

Profit and Loss Statement

The following table presents a YoY and QoQ comparison of of Statements of Income

  

YoY

  

QoQ

Key Indicators

FY/09*

FY/10

Growth (%)

  

Q1/10*

Q2/10*

Q3/10*

Q4/10

Growth (%)

Op. Revenues (Rp Bn)

 67,678 

 68,629 

 1.4 

  

 16,356 

 17,351 

 17,601 

 17,321  

 (1.6) 

Op. Expenses (Rp Bn)

 44,890 

 46,138 

 2.8 

  

 11,037 

 11,334 

 11,744 

 12,023  

 2.4 

Op. Income (Rp Bn)

 22,788 

 22,491 

 (1.3) 

  

 5,320 

 6,017 

 5,858 

 5,296  

 (9.6) 

EBITDA (Rp Bn)

 36,762 

 37,103 

 0.9 

  

 9,059 

 9,700 

 9,478 

 8,866 

 (6.5) 

EBITDA Margin (%)

54%

54%

 (0.3) 

  

55%

56%

54%

51%

 (2.7) 

Net Inc. (Rp Bn)

 11,399 

 11,537 

 1.2 

  

 2,777 

 3,227 

 2,930 

 2,603 

 (11.1) 

Net Inc./Share(Rp)

 580 

 587 

 1.2 

  

 141 

 164 

 149 

 133 

 (11.1) 

Net Inc./ADS(Rp)

 23,181 

 23,462 

 1.2 

  

 5,646 

 6,562 

 5,959 

 5,295 

 (11.1) 

*as restated

 

In June 2009, the Indonesian Financial Accounting Standard Board (“DSAK”) issued Statement of Withdrawal of Financial Accounting Standard  No. 1 (PPSAK 1), effective for financial statement periods beginning on or after January 1, 2010.  PPSAK 1, among other things, revokes PSAK 35 “Accounting for Revenue from Telecommunications Services”. TELKOM adopted PPSAK 1 starting January 1, 2010 and applied retrospectively. The effect of such implementation, among other things, include: presentation of the interconnection revenues from a “net” to a “gross” basis; reclassification of outgoing calls to other operators from interconnection revenues to telephone revenues.

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 5 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

In 2006, the DSAK issued PSAK 50 (Revised 2006) "Financial Instruments: Presentation and Disclosures" and PSAK 55 (Revised 2006) "Financial Instruments: Recognition and Measurement". These standards amend both PSAK 50 "Accounting for Investments in Certain Securities" and PSAK 55 "Accounting for Derivative Instruments and Hedging Activities".  Both standards  are  applicable  for  financial statements covering periods beginning on or after January 1, 2010. The adoption of the standards did not have a material impact on the result of TELKOM. In accordance with the transitional provision of PSAK 55 (Revised 2006), the impact of recalculating the provision for impairment loss of Rp.91,237 million has been adjusted to retained earnings at January 1, 2010.

 

Operating Revenues

We recorded operating revenues of Rp68,629.2 billion in FY10, a 1.4% increase from Rp67,677.6 billion in FY09.

·        Fixed line revenue decreased by 9.4% from Rp14,286.3 billion in FY09 to Rp12,940.0 billion in FY10, mainly due to a decrease in usage charges and monthly subscription revenue.

·        Cellular revenue increased by 2.1% from  Rp28,532.5 billion in FY09 to Rp29,133.6 billion in FY10 due to increase in usage charges, features, and monthly subscription revenue.

·        Interconnection revenue decreased by 3.4% from Rp3,866.7 billion in FY09 to Rp3,735.4 billion in FY10.  This was mainly due to decline in domestic interconnection and transit revenue.

·        Data, internet and information technology services revenues increased by Rp1,289.5 billion or 7.0% from Rp18,511.6 billion in FY09 to Rp19,801.1 billion in FY10, primarily due to growth in SMS revenue, internet and data communications and information technology services revenues, as a result of significant growth in Speedy subscribers and mobile broadband users by 44% and 128%, respectively.

·        Network revenues decreased by 13.1% from Rp1,218.0 billion in FY09 to Rp1,058.2 billion in FY10, mainly due to the decrease in satellite transponder lease services and leased channel.

·        Other revenues increased by 55.3% from Rp1,262.5 billion in FY09 to Rp1,960.9 billion in FY10, mainly caused by Universal Service Obligation (USO) compensation.

 

  

YoY

  

QoQ

FY09*

FY10

Growth (%)

  

Q1/10*

Q2/10*

Q3/10*

Q4/10

Growth (%)

Fixed line (Rp Bn)

 14,286 

 12,940 

(9.4)

 

 3,308 

 3,306 

 3,133 

 3,193 

2

Cellular (Rp Bn)

 28,533 

 29,134 

2.1

 

 6,691 

 7,470 

 7,523 

 7,450 

(1)

Interconnection (Rp Bn)

 3,867 

 3,735 

(3.4)

 

 1,051 

 781 

 943 

 960 

2

Data, Internet & IT Services (Rp Bn)

 18,512 

 19,801 

7.0

 

 4,764 

 4,939 

 5,332 

 4,766 

(11)

Network (Rp Bn)

 1,218 

 1,058 

(13.1)

 

 277 

 278 

 348 

 155 

(56)

Other (Rp Bn)

 1,263 

 1,961 

55.3

 

 264 

 577 

 322 

 798 

147

*as restated

 

Operating Expenses

Total Operating Expenses was Rp46,138.1 billion in FY10, increased by 2.8% from Rp44,889.9 billion in FY09.

·        Depreciation and amortization expense increased by 4.6% from Rp13,974.8 billion to Rp14,611 billion, mainly due to increase in depreciation of supporting facilities, BTS and transport.

·        Personnel expenses decreased by 11.9%, from Rp8,533.1 billion to Rp7,516.5 billion, as a result of early retirement program performed in the previous years.

·        Operation & maintenance expenses increased by Rp1,497.0 billion or 10.3% from Rp14,549.4 billion in FY09 to Rp16,046.4 billion in FY10, mainly due to increase of expenses associated with the expanded capacity of Telkomsel transmitting and receiving station and switching and intelligent network equipment, and an increase in outsourcing expenses.

·        General and administrative expenses decreased by 11.0% from Rp2,643.8 billion in FY09 to Rp2,352.1 billion, due to decrease in collection expense and security and screening expense.

·        Interconnection expense increased by 5.4% from Rp2,929.3 billion in FY09 to Rp3,086.4 billion due to increase in domestic interconnection and transit expense.

·        Marketing expenses slightly increased by 11.8% from Rp2,259.5 billion in FY09 to Rp2,525.2 billion, mainly due to an increase in advertising and promotion.

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 6 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

 

  

YoY

  

QoQ

FY09*

FY10

Growth (%)

  

Q1/10*

Q2/10*

Q3/10*

Q4/10

Growth (%)

Depreciation and Amortization (Rp Bn)

 13,975  

 14,611  

4.6

  

 3,739 

 3,683 

 3,620 

 3,568 

(1.4)

Personnel (Rp Bn)

 8,533  

 7,516  

(11.9)

  

 1,874 

 1,593 

 1,960 

 2,089 

6.6

O & M (Rp Bn)

 14,549  

 16,046  

10.3

  

 3,738 

 4,160 

 4,145 

 4,004 

(3.4)

G & A (Rp Bn)

 2,644  

 2,352  

(11.0)

  

 599 

 519 

 608 

 626 

2.9

Interconnection (Rp Bn)

 2,929  

 3,086  

5.4

  

 670 

 829 

 778 

 809 

4.0

Marketing (Rp Bn)

 2,259  

 2,525  

11.8

  

 416 

 550 

 632 

 927 

46.6

*as restated

 

EBITDA and EBITDA Margin

During 2010, EBITDA reached Rp37.1 trillion, increase by 0.9% from the same period in 2009, while EBITDA margin decline by 0.2% to 54%.

Net income

Net income increased by 1.2% to Rp11,537.0 billion and net income margin remained stable at 16.8%. Return on Equity (ROE) and Return on Assets (ROA) for this period reached 26.0% and 11.6%, respectively.

 

Balance Sheet

  

  

  

  

  

  

  

  

  

The following table presents YoY and QoQ comparison of our Balance Sheet:

  

Balance Sheet

YoY

  

QoQ

FY09*

FY10

Growth (%)

  

Q1/10*

Q2/10*

Q3/10*

Q4/10

Growth (%)

Total Assets (Rp Tn)

 97.8 

 99.8 

2.0

  

 96.5 

 99.1 

 100.1 

 99.8 

(0.3)

Total Liabilities (Rp Tn)

 48.2 

 43.3 

(10.1)

  

 49.4 

 49.4 

 46.4 

 43.3 

(6.7)

Minority interest (Rp Tn)

 10.9 

 12.0 

9.7

  

 9.7 

 9.7 

 10.9 

 12.0 

10.2

Total Equity (Rp Tn)

 38.7 

 44.4 

14.9

  

 39.9 

 39.9 

 42.7 

 44.4 

3.9

*as restated

 

As of December 31, 2010, our total assets increased by Rp1.9 trillion or 2.0% from Rp97.8 trillion in FY09 to Rp99.8 trillion in FY10.  This was mainly contributed by increase in current assets, which were cash and cash equivalent and advances and prepaid expenses.

 

Total liabilities decreased by Rp4.9 trillion or 10.1% from Rp48.2 trillion to Rp43.3 trillion, mainly due to:

·        Current Liabilities decreased by 8.1% to Rp23.7 trillion, mainly due to a decrease in taxes payable.

·        Non-current Liabilities increased by 2.2% to Rp22.7 trillion due to the bonds issued.

Total equity increased by Rp5.7 trillion or 14.9% from Rp38.7 trillion at the end of December 31, 2009 to Rp44.4 trillion on December 31, 2010.

 

Cash Flow

Total cash and cash equivalents at the end of this period was Rp1.3 trillion, a 16.8% increase compared to the FY09, as a result of:

·        Net cash flows from operating activities decreased by Rp2.1 trillion, or 6.9%, primarily due to an increase in cash payments for operating cash expenses;

·        Net cash flows from investing activities decreased by Rp5.3 trillion, or 24.3%, primarily due to a decrease in acquisition of property, plant and equipment; and

·        Net cash flows from financing activities increased by Rp3.1 trillion, or 45.5%, primarily due to an increase in proceeds from bonds.

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 7 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

 

FINANCIAL RATIOS

  

  

  

  

  

  

  

  

  

  

YoY

  

QoQ

  

FY09*

FY10

Growth (%)

  

Q1/10*

Q2/10*

Q3/10*

Q4/10

Growth (%)

Operating Margin (%)

 33.7  

 32.8  

 (2.7) 

  

 32.5  

 34.7  

 33.3  

 30.6  

 (8.1) 

Profit Margin (%)

 16.8  

 16.8  

 (0.2) 

  

 17.0  

 18.6  

 16.6  

 15.0  

 (9.7) 

Current Ratio (%)

 60.2  

 91.5  

 52.0  

  

 62.8  

 57.6  

 78.6  

 91.5  

 16.4  

Return on Asset (%)

 11.7  

 11.6  

 (0.9) 

  

 2.9  

 3.3  

 2.9  

 2.6  

 (10.9) 

Return on Equity (%)

 29.5  

 26.0  

 (11.9) 

  

 6.6  

 8.1  

 6.9  

 5.9  

 (14.5) 

Total Liabilities to Total Asset (%)

 124.8  

 97.6  

 (21.8) 

  

 102.5  

 124.0  

 108.6  

 97.6  

 (10.2) 

Debt Equity (%)

 56.6  

 48.2  

 (14.8) 

  

 46.9  

 46.3  

 52.6  

 48.2  

 (8.4) 

Debt to EBITDA (%)

 59.5  

 57.7  

 (3.0) 

  

 216.3  

 190.4  

 237.3  

 241.5  

 1.8  

EBITDA to Interest Expense (Times)

 17.5  

 19.2  

 9.7  

  

 18.0  

 21.4  

 20.1  

 17.8  

 (11.4) 

EBITDA to Net Debt (%)

 268.9  

 312.4  

 16.2  

  

 72.8  

 99.1  

 72.1  

 74.6  

 3.5  

*as restated

 

TELKOMSEL

Profit and Loss Statement

The following table, presents YoY and QoQ comparison of our Statements of Income.

  

YoY

  

QoQ

Key Indicators

FY/09*

FY/10

Growth (%)

  

Q1/10*

Q2/10*

Q3/10*

Q4/10

Growth (%)

Op. Revenues (Rp Bn)

 44,443 

 45,567 

 2.5 

  

 10,775  

 11,393  

 11,916  

 11,483  

 (3.6) 

Op. Expenses (Rp Bn)

 25,653 

 28,386 

 10.7 

  

 6,712  

7,109

 7,462  

 7,103  

 (4.8) 

Op. Income (Rp Bn)

 18,791 

 17,181 

 (8.6) 

  

 4,063  

 4,284  

 4,454  

 4,380  

 (1.6) 

EBITDA (Rp Bn)

 27,332 

 26,598 

 (2.7) 

  

 6,400 

 6,597 

 6,841 

 6,760 

 (1.2) 

EBITDA Margin (%)

61%

58%

 (3.1) 

  

59%

58%

57%

59% 

 2.0 

Net Inc. (Rp Bn)

 13,160 

 12,362 

 (6.1) 

  

 2,838 

 3,088 

 3,264 

 3,173 

 (2.8) 

*as restated

 

In reference to EITF 99-19 (Reporting Revenue Gross as a Principal versus Net as an Agent) and the issuance of PPSAK No.1 (Statement on Withdrawal of Accounting Standard) that covers among other the withdrawal of PSAK No.35 (Statement on Accounting Standard) regarding Accounting for Revenue of Telecommunication Services, revenues from interconnection (domestic and international) should be presented on a gross basis with interconnection charges (domestic and international) are presented as part of operating expenses.

 

Operating Revenues

Operating revenues of Rp45.6 trillion were recognized in FY10, an increase of 2.5% YoY. The growth is relatively lower compared to the growth of operating revenues in 2009, due to the decline in the chargeable traffic production in relation with more competitive pricing.

·        Both postpaid and prepaid revenues increased 2% to Rp4.4 trillion and Rp36.7 trillion, respectively, driven by the growth of data revenues;

·        International roaming revenues slightly decline to Rp1.2 trillion as a result of a decline in traffic from inbound roamers;

·        Interconnection revenues increased 5% to Rp2.7 trillion, due to the increase in incoming interconnection traffic from international calls; and

·        Other operating revenues resulted from network lease and USO compensation fee, which increased to Rp527 billion.

 

Operating Expenses

Operating expenses increased by 10.7% to Rp28.4 trillion:

·        Personnel expenses increased by 16% YoY to Rp1.6 trillion, as a result of organization restructuring and increase in number of employees;

·        Operation & maintenance expenses grew by 14% YoY to Rp9.9 trillion, which was mainly on frequency fees and additional maintenance costs for new sites as a result of network infrastructure growth;

·        General & administration expenses increased to Rp854 billion or by 8% YoY, which was mostly in relation with increase of space rental;

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 8 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

 

·        Marketing expenses grew by 18% to Rp1.4 trillion, mainly on sales support costs (such as outlet cost) and promotion expenses due to the heightened competition; and

·        International roaming and Interconnection charges decreased by 2% to Rp2.8 trillion, as a result of increase in on-network traffic;

·        Other operating expenses increased by 10% to Rp2.4 trillion, mainly due to increase in data access fee in line with the growth of data business;

·        Depreciation expenses increased to Rp9.4 trillion or by 10% YoY, related to network infrastructure growth and impact of changes in estimated useful life.

 

In December 2010, the government of the Republic of Indonesia issued a new formula for 2G frequency fee based on frequency bandwidth. With the new formula, the growth of Telkomsel’s frequency fees will be more manageable.

 

Other (non-operating) expenses increased by 18% from net expenses of Rp519 billion in FY09 to Rp612 billion in FY10, which was largely due to higher foreign exchange gains recorded in 2009 compared to 2010 as a result of exchange rates different and also due to lower financing charges in 2010 as a result of lower interest rates.

 

Balance Sheet

Total Assets decreased by 3% to Rp57.3 trillion. Total liabilities decreased significantly by 18% to Rp23.1 trillion due to loan repayments, while total equity increased by 10% to Rp34.2 trillion.

·        Current assets decreased by 18% to Rp5.8 trillion, mainly in cash & cash equivalents, as a result of the acceleration of debt repayment in order to optimize our liquidity;

·        Property, plan and equipment decreased by 2% to Rp49.1 trillion as a result of network infrastructure growth combined with impact of accelerated depreciation of fixed-assets;

·        Current liabilities decreased by 29% to Rp13.5 trillion, in relation with decline in current maturities of medium-term loans due to the acceleration of debt repayment; and

·        Non-current liabilities increased by 5% to Rp9.6 trillion which was mainly from increase of long-term loans.

 

As of December 31, 2010 Telkomsel had Rp9.6 trillion loans outstanding after transaction cost in, which Rp2.9 trillion was presented as current liabilities and Rp6.6 trillion as non-current liabilities.

 

Cash Flow

Net cash generated from operations in FY10 was Rp19.5 trillion, declined by 11% compared to FY09 due to increase in payment of taxes, license fees and trade payable. Cash flow for investment activities, which was mostly spent for the acquisition of network infrastructures, decreased by 26% to Rp9.9 trillion (approximately US$ 1.1 billion) due to the adjustment to budgeted capex and the changes of term of payments. Net cash used in financing activities increased by 106% mainly due to higher loan repayments and dividend payments.

(in Rp billion)

YoY

 

FY/09*

FY/10

Growth (%)

Cash Flow from Operating Activities

 21,826 

 19,515 

(10.6)

Cash Flow for Investing Activities

 (13,364) 

 (9,870) 

(26.1)

Cash Flow from Financing Activities

 (5,840) 

 (12,021) 

105.8

Net Increase in Cash & Cash Equivalents

 2,622 

 (2,376) 

(190.6)

Effect of Foreign Exchange Rate Changes

 136 

 (43) 

(131.6)

Cash and Cash Equivalents at Beginning of Periods

 1,155 

 3,641 

215.2

Cash and Cash Equivalents at End of Years

 3641 

 1222 

(33.56)

Addition to Fixed Assets (incl. CIP)

 12,663 

8,197 

(35.3)

*as restated

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 9 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

Loan/Debt

For FY10, Telkomsel drew down Rp3.3 trillion and USD134.8 million from our existing facilities. Telkomsel has to observe certain agreed financial covenants related to its loans/debts. As of December 31, 2010 these covenants were as follows:

Covenants to be maintained

 

Required

Actual

EBITDA To Debt Service

≥ 1.25

3.73

Debt to Tangible Net Worth

≤ 2.00

0.29

 

ADDITIONAL INFORMATION

 

Capital Expenditure

In 2010, we incurred capital expenditures of Rp12,650.8 billion (US$1,404.1 million), which was Rp8,336.7 billion less than the amount originally budgeted for in our capital expenditure plan. This was primarily caused by Telkomsel’s decision to scale back budgeted capital expenditure after adjusting projections for the cellular market’s growth made at the end of 2010. Of the Rp12,650.8 billion, Telkomsel incurred capital expenditures of Rp8,197.0 billion (US$909.8 million) for network infrastructure, IT System and other investments, and our other subsidiaries incurred capital expenditures of Rp831.0 billion (US$92.2 million) in 2010.

 

Human Resources

As of December 31, 2010, TELKOM had 26,847 employees, with 21,138 employed by TELKOM and 5,709 employed by our subsidiaries. This represents a decrease of 6.6% from 28,750 employees as of December 31, 2009, with 23,154 employed by TELKOM and 5,596 by our subsidiaries.

 

The decreasing size of our workforce reflects the impact of our multi-exit programs, particularly early retirement programs implemented since 2002. We implemented these programs to decrease our fixed wireline workforce in proportion to the decline in revenues from this legacy business segment.

 

Recent Development

Tower Lease Business

We plan to expand our tower lease business, which belongs to TELKOM and Telkomsel. TELKOMGroup currently has approximately 16,000 towers leasable nationwide. By the end of 2010, TELKOM has added 733 new tenants. In 2011, TELKOM plans to lease more than 2,000 towers.

 

Extraordinary Meeting of Shareholders

Based on the EGM of Stockholders of the Company dated December 17, 2010, the Company’s stockholders agreed, among others to:

1)       Reappoint Rinaldi Firmansyah as President Director and Arief Yahya as Director of Enterprise and Wholesale with the terms of service effective from the closing of the EGM of Stockholders of the Company and to be ended on the date of the AGM of Stockholders of the Company in 2015;

2)       Appoint Jusman Syafii Djamal as President Commissioner, Rudiantara as Independent Commissioner, and Johnny Swandi Sjam as Independent Commissioner with the terms of service effective from January 1, 2011 and to be ended on the date of the AGM of Stockholders of the Company in 2015.

 

Bandwidth Base 2G Frequency Fee

Bandwidth base 2G frequency fee has been applied as of mid December 2010. In 2011, we expect the frequency fee will be flat due to increasing in frequency fee on CDMA, microwave and annual increase on 3G despite of the 20% decrease in cellular 2G frequency.

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 10 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

IPTV

Supported with the available system and operation license, IPTV will serve as an icon for TELKOM’s product and service in the future. In September 2010, TELKOM launched the trial of Internet Protocol Based Television (IPTV) service in five cities, namely Jakarta, Bandung, Semarang, Yogyakarta and Surabaya. We plan to commercially launch our IPTV service in May 2011.

 

Palapa Ring

In 2010, we have completed a submarine cable links the islands of Java, Kalimantan, Sulawesi, Bali (Denpasar) and Lombok (Mataram) to high speed bandwidth for voice, video and data services. Work also continued on the installation of a fiber optic cable extending from Mataram to Kupang in East Nusa Tenggara, which is part of the Palapa Ring project. The Mataram-Kupang Cable System, which we expect to deploy in the second quarter of 2011, will also cater to the ever-increasing demand for greater bandwidth by supporting a reliable, high capacity network capable of carrying a variety of services. Totaling 2,500 km, these two cables provide a powerful backbone for the rapidly growing volume of internet traffic and are part of TELKOM’s commitment to extend next generation network capability to Eastern Indonesia.

 

Satellite TELKOM-3

Another major investment project underway is the TELKOM-3 communications satellite. With the tender completed in 2010, the satellite is now being built in Russia at a cost of almost US$178.9 million. With deployment expected by early 2012, the TELKOM-3 satellite will significantly enhance our broadcast capacity as well as providing valuable support for enterprises and national defense systems.

 

Infrastructure Modernization

To support broadband and data services, we commit to improve our infrastructure quality through:

·        Replacing the copper wire to fiber optic;

·        Transforming to IP based technology (from TDM technology to MSAN/GPON); and

·        Implementing newest technology of transport layer, i.e. 10/40 GBps with Terra Router.

 

Awards

We continued to receive appreciation for our innovative products, reliable network and excellent customer service. The following are the awards that we received during the forth quarter of 2010:

·        Two of our leading products, Speedy and Flexi, won “2010 Indonesian Customer Satisfaction Awards (ICSA)” in the “Internet Service Provider Wireline/Fixed” and “Simcard Postpaid Fixed Wireless Access” categories, respectively. Three others Telkomsel products also won awards: simPATI, in the “Simcard Prepaid Cellular” category, Kartu Halo in the “Simcard Postpaid Cellular” category and Telkomsel Flash in the “Internet Service Provider Wireless/Mobile” category.

·        In recognition of our proactive concern for advancing education in Indonesia, we were awarded by the Ministry of National Education’s The Anugerah Peduli Pendidikan (Education Concern Award).

·        TELKOM was named ”Best of The Best Corporate 2010” in the ” Business Review Awards 2010” while our President Director, Rinaldi Firmansyah, was chosen as “CEO of the Year 2010”. We were also ranked first for Good Corporate Governance and Human Capital management. The Business Review Awards are presented by Business Review Magazine to listed companies and SOEs who have achieved significant improvements in performance and have played a major role in contributing to the development of business and national economic growth.

·        We received awards in the Best CSR for Indonesia, CSR for Education and CSR for People’s Economies categories at the CSR for Indonesia Awards 2010.

·        We received the Most Trusted Company 2010 based on the Corporate Governance Perception Index and Indonesia’s Most Trusted Company 2010 based on a Survey of Analysts and Investors in implementing Good Corporate Governance.

·        At the HR Excellence Awards 2010, we received an award in the Performance Management category.

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 11 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

PERUSAHAAN PERSEROAN (PERSERO)

P. T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2009 AND 2010

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

  

  

  

  

  

  

  

  

  

  

  

2009*

  

2010

ASSETS

  

  

  

  

CURRENT ASSETS

  

  

  

  

Cash and cash equivalents

  

 7,805,460 

  

 9,119,849 

Temporary investments

  

 359,507 

  

 370,433 

  

Related parties - net of allowance for doubtful

  

  

  

  

  

  

accounts of Rp.93,483 million in 2009

  

  

  

  

  

  

and Rp.151,266 million in 2010

  

 604,768 

  

 780,043 

  

Third parties - net of allowance for doubtful

  

  

  

  

  

  

accounts of Rp.1,180,067 million in 2009

  

  

  

  

  

  

and Rp.1,294,078 million in 2010

  

 3,184,916 

  

 3,563,666 

Other receivables - net of allowance for

  

  

  

  

  

doubtful accounts of Rp.9,517 million in 2009

  

  

  

  

  

and Rp.6,304 million in 2010

  

 128,025 

  

 90,140 

Inventories - net of allowance for obsolescence of

  

  

  

  

  

Rp.72,174 million in 2009 and Rp.83,286

  

  

  

  

  

million in 2010

  

 435,244 

  

 515,536 

Advances and prepaid expenses

  

 2,496,539 

  

 3,441,031 

Claims for tax refund

  

 666,351 

  

 133,056 

Prepaid taxes

  

 379,732 

  

 715,698 

Other current assets

  

 125,482 

  

 1,175 

Total Current Assets

  

 16,186,024 

  

 18,730,627 

NON-CURRENT ASSETS

  

  

  

  

Long-term investments - net

  

 151,553 

  

 253,850 

Property, plant and equipment - net of accumulated

  

  

  

  

  

depreciation of Rp.72,716,079 million in 2009

  

  

  

  

  

and Rp.83,712,378 million in 2010

  

 76,419,897 

  

 75,832,408 

Property, plant and equipment under Revenue-

  

  

  

  

  

Sharing Arrangements - net of accumulated

  

  

  

  

  

depreciation of Rp.181,917 million in 2009

  

  

  

  

Prepaid pension benefit cost

  

 497 

  

 988 

Advances and other non-current assets

  

 2,488,842 

  

 3,052,695 

Goodwill and other intangible assets - net of

  

  

  

  

  

accumulated amortization of Rp.7,570,659 million

  

  

  

  

  

in 2009 and Rp.9,094,032 million in 2010

  

 2,428,280 

  

 1,784,525 

Escrow accounts

  

 44,114 

  

 41,662 

Deffered tax assets - net

  

 94,953 

  

 61,692 

Total Non-current Assets

  

 81,628,136 

  

 81,027,820 

TOTAL ASSETS

  

 97,814,160 

  

 99,758,447 

*as restated

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 12 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

 

PERUSAHAAN PERSEROAN (PERSERO)

P. T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS  (continued)

 AS OF DECEMBER 31, 2009 AND 2010

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars)

  

  

  

  

  

  

  

  

  

  

  

2009*

  

2010

LIABILITIES AND STOCKHOLDERS' EQUITY

  

  

  

  

CURRENT LIABILITIES

  

  

  

  

Trade payables

  

  

  

  

  

Related parties

  

 1,759,468 

  

 1,153,874 

  

Third parties

  

 8,038,586 

  

 6,356,921 

Other payables

  

 3,162 

  

 20,953 

Taxes payables

  

 1,749,789 

  

 735,690 

Dividend payables

  

 405,175 

  

 255,545 

Accrued expenses

  

 4,118,994 

  

 3,409,260 

Unearned income

  

 2,946,532 

  

 2,681,483 

Advances from customers and suppliers

  

 111,356 

  

 499,705 

Short-term bank loans

  

 43,850 

  

 55,831 

Current maturities of long-term liabilities

  

 7,716,213 

  

 5,303,636 

Total Current Liabilities

  

 26,893,125 

  

 20,472,898 

NON-CURRENT LIABILITIES

  

  

  

  

Deferred tax liabilities - net

  

 3,220,510 

  

 4,073,814 

Unearned income

  

 393,078 

  

 312,029 

Accrued long service awards

  

 212,518 

  

 242,149 

Accrued post-retirement health care benefits

  

 1,801,776 

  

 1,050,030 

Accrued pension and other post-retirement benefits costs

  

 808,317 

  

 536,990 

  

Obligations under finance leases

  

 541,575 

  

 408,867 

  

Two-step loans - related party

  

 3,094,110 

  

 2,741,303 

  

Bonds and Notes

  

 68,777 

  

 3,249,379 

  

Bank loans

  

 11,086,688 

  

 10,256,205 

  

Deferred consideration for business combinations

  

 108,079 

  

 - 

Total Non-current Liabilities

  

 21,335,428 

  

 22,870,766 

TOTAL LIABILITIES

  

 48,228,553 

  

 43,343,664 

MINORITY INTEREST

  

 10,933,347 

  

 11,996,041 

STOCKHOLDERS' EQUITY

  

  

  

  

Capital stock - Rp.250 par value per Series A

  

 

 

 

  

Dwiwarna share and Series B share

  

 

 

 

  

Authorized - 1 Series A Dwiwarna share and

  

 

 

 

  

  

79,999,999,999 Series B shares

  

 

 

 

  

Issued and fully paid - 1 Series A Dwiwarna share

  

 

 

 

  

  

and 20,159,999,279 Series B shares

  

 5,040,000 

  

 5,040,000 

Additional paid-in capital

  

 1,073,333 

  

 1,073,333 

Treasury stock - 490,574,500 shares in 2009 and 2010

  

 (4,264,073) 

  

 (4,264,073) 

  

transactions between entities under common control

  

 478,000 

  

 478,000 

  

companies

  

 385,595 

  

 385,595 

Unrealized holding gain from available-for-sale securities

  

 18,136 

  

 49,695 

Translation adjustment

  

 230,995 

  

 233,378 

Difference due to acquisition of minority interest in subsidiaries

  

 (439,444) 

  

 (484,629) 

  

Appropriated

  

 15,336,746 

  

 15,336,746 

  

Unappropriated

  

 20,792,972 

  

 26,570,697 

Total Stockholders' Equity

  

 38,652,260 

  

 44,418,742 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

  

 97,814,160 

  

 99,758,447 

*as restated

  

 

 

 

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 13 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

 

PERUSAHAAN PERSEROAN (PERSERO)

P. T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2010

(Figures in tables are presented in millions of Rupiah and thousands of United States Dollars, except per share and per ADS data)

  

  

  

  

 

 

 

 

  

2009*

  

2010

  OPERATING REVENUES

  

Telephone

  

  

  

  

  

  

Fixed lines

  

 14,286,212 

  

 12,940,007 

  

  

Cellular

  

 28,532,530 

  

 29,133,595 

  

Interconnection

  

 3,866,642 

  

 3,735,376 

  

Data, internet and information technology services

  

 18,511,587 

  

 19,801,097 

  

Network

  

 1,218,013 

  

 1,058,159 

  

Other telecommunications services

  

 1,262,534 

  

 1,960,947 

  

Total Operating Revenues

  

 67,677,518 

  

 68,629,181 

OPERATING EXPENSES

  

  

  

  

  

Depreciation and amortization

  

 13,974,804 

  

 14,611,458 

  

Personnel

  

 8,533,157 

  

 7,516,470 

  

Operations, maintenance and telecommunication

  

  

  

  

  

  

services

  

 14,549,413 

  

 16,046,414 

  

General and administrative

  

 2,643,788 

  

 2,352,146 

  

Interconnection

  

 2,929,260 

  

 3,086,355 

  

Marketing

  

 2,259,460 

  

 2,525,218 

  

Total Operating Expenses

  

 44,889,882 

  

 46,138,061 

OPERATING INCOME

  

 22,787,636 

  

 22,491,120 

OTHER (EXPENSES) INCOME

  

  

  

  

  

Interest income

  

 462,169 

  

 421,354 

  

Equity in net (loss) income of associated companies

  

 (29,715) 

  

 (13,622) 

  

Interest expense

  

 (2,095,978) 

  

 (1,928,035) 

  

Gain (loss) on foreign exchange - net

  

 972,947 

  

 42,948 

  

Others - net

  

 349,962 

  

 402,586 

  

Other expenses - net

  

 (340,615) 

  

 (1,074,769) 

INCOME BEFORE TAX

  

 22,447,021 

  

 21,416,351 

TAX (EXPENSE) BENEFIT

  

  

  

  

  

Current

  

 (6,029,701) 

  

 (4,669,394) 

  

Deferred

  

 (374,422) 

  

 (876,645) 

  

  

  

  

 (6,404,123) 

  

 (5,546,039) 

INCOME BEFORE MINORITY INTEREST IN NET

  

  

  

  

  

INCOME OF CONSOLIDATED SUBSIDIARIES

  

 16,042,898 

  

 15,870,312 

MINORITY INTEREST IN NET INCOME OF

  

  

  

  

  

CONSOLIDATED SUBSIDIARIES - net

  

 (4,644,072) 

  

 (4,333,313) 

NET INCOME

  

 11,398,826 

  

 11,536,999 

BASIC EARNINGS PER SHARE

  

  

  

  

  

Net income per share

  

 579.52 

  

 586.54 

  

(40 Series B shares per ADS)

  

 23,180.80 

  

 23,461.60 

  

  

  

  

  

  

  

*as restated

 

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 14 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

PT TELEKOMUNIKASI INDONESIA Tbk and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

PERIOD ENDED DECEMBER 31, 2009 AND 2010

(in millions of Rupiah)

  

  

  

  

  

  

  

  

  

  

  

  

  

2009*

  

2010

CASH FLOWS FROM OPERATING ACTIVITIES

  

  

  

  

  

Cash receipts from operating revenues

  

  

  

  

  

  

Telephone

  

  

  

  

  

  

  

Fixed lines

  

 13,943,529 

  

 12,384,188 

  

  

  

Cellular

  

 28,440,414 

  

 28,904,281 

  

  

Interconnection

  

 3,796,937 

  

 3,630,369 

  

  

Data, internet and information technology services

  

 18,035,563 

  

 20,670,321 

  

  

Other services

  

 2,418,830 

  

 2,607,353 

  

  

Total cash receipts from operating revenues

  

 66,635,273 

  

 68,196,512 

  

Cash payments for operating expenses

  

 (21,056,721) 

  

 (25,079,528) 

  

Cash payments to employees

  

 (9,333,153) 

  

 (9,167,438) 

  

Cash paid (refund) from (to) customers

  

 (32,519) 

  

 386,290 

Cash generated from operations

  

 36,212,880 

  

 34,335,836 

  

Interest received

  

 471,965 

  

 419,576 

  

Interest paid

  

 (2,185,799) 

  

 (1,826,045) 

  

Income tax paid

  

 (5,035,463) 

  

 (5,829,422) 

  

Receipt of claims for tax refund

  

 348,021 

  

 658,818 

Net cash provided by operating activities

  

 29,811,604 

  

 27,758,763 

  

  

  

  

  

  

  

  

CASH FLOWS FROM INVESTING ACTIVITIES

  

  

  

  

  

  

maturity of time deposits

  

 24,820 

  

 26,304 

  

  

and placements in time deposits

  

 (80,081) 

  

 (5,671) 

  

Proceeds from sale of property, plant and equipment

  

 12,465 

  

 11,702 

  

Acquisition of property, plant and equipment

  

 (20,479,460) 

  

 (14,951,864) 

  

  

property, plant and equipment

  

 74,850 

  

 (641,166) 

  

(Increase) decrease in advances, other assets, escrow accounts

  

 (101,432) 

  

 88,438 

  

Business combinations, net of cash paid

  

 - 

  

 (116,503) 

  

Acquisition of intangible assets

  

 (663,702) 

  

 (723,130) 

  

Acquisition of minority interest in subsidiary

  

 (600,154) 

  

 (95,576) 

  

Cash dividends received

  

 2,575 

  

 4,520 

  

Acquisition of long-term investments

  

 (18,760) 

  

 (115,358) 

Net cash used in investing activities

  

 (21,828,879) 

  

 (16,518,304) 

  

  

  

  

  

  

Cash dividends paid

  

 (6,364,898) 

  

 (5,417,952) 

  

Cash dividends paid to minority stockholders of subsidiaries

  

 (2,831,023) 

  

 (3,624,089) 

  

Proceeds from short-term borrowings

  

 117,673 

  

 163,133 

  

Repayments of short-term borrowings

  

 (118,529) 

  

 (151,077) 

  

Proceeds from Medium-term Notes

  

 70,000 

  

 35,000 

  

Repayment of Medium-term Notes

  

 - 

  

 (4,250) 

  

Proceeds from long-term borrowings

  

 9,536,558 

  

 4,840,252 

  

Repayment of long-term borrowings

  

 (6,669,574) 

  

 (8,715,798) 

  

Proceeds from bonds

  

 - 

  

 2,990,759 

  

Proceeds from promissory notes

  

 - 

  

 291,058 

  

Repayment of promissory notes

  

 (123,927) 

  

 (19,741) 

  

Repayment of obligations under finance leases

  

 (364,974) 

  

 (206,873) 

Net cash used in financing activities

  

 (6,748,694) 

  

 (9,819,578) 

NET INCREASE IN CASH AND

  

  

  

  

  

CASH EQUIVALENTS

  

 1,234,031 

  

 1,420,881 

  

  

  

  

  

  

  

  

EFFECT OF EXCHANGE RATE CHANGES

  

  

  

  

  

ON CASH AND CASH EQUIVALENTS

  

 (318,516) 

  

 (106,492) 

CASH AND CASH EQUIVALENTS AT BEGINNING

  

  

  

  

  

OF YEAR

  

 6,889,945 

  

 7,805,460 

  

  

  

  

  

  

  

  

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  

 7,805,460 

  

 9,119,849 

*as restated

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 15 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

PT TELEKOMUNIKASI SELULAR (TELKOMSEL)

BALANCE SHEET

AS OF DECEMBER 31, 2009 AND 2010

(In billions of Rupiah)

  

  

  

  

  

2009 

  

2010 

ASSETS

  

  

  

CURRENT ASSETS

  

  

  

   Cash and cash equivalents

 3,641 

  

 1,222 

   Acct. /Unbilled receivables

 698 

  

 840 

   Prepayments

 1,942 

  

 2,856 

   Others

 804 

  

 869 

   Total Current Assets

 7,085 

  

 5,787 

  

  

  

  

NON-CURRENT ASSETS

  

  

  

   Long-term Investment

 20 

  

 20 

   Fixed assets - net

 50,346 

  

 49,118 

   Advances for fixed assets

 11 

  

 304 

   Intangible assets - net

 718 

  

 1,019 

   Others

 1,047 

  

 1,095 

   Total Non-Current Assets

 52,142 

  

 51,556 

TOTAL ASSETS

 59,227 

  

 57,343 

  

  

  

  

CURRENT LIABILITIES

  

  

  

   Accounts payable & Accr. Liabilities

 8,996 

  

 7,547 

   Taxes payable

 1,342 

  

 524 

   Unearned revenue

 2,498 

  

 2,467 

   Dividend payable

 1,142 

  

 - 

   Curr. maturities of med-term loans

 4,982 

  

 2,955 

   Curr. maturities of oblig. under finance leases

 30 

  

 - 

   Total Current Liabilities

 18,990 

  

 13,493 

  

  

  

  

NON-CURRENT LIABILITIES

  

  

  

   Med-term & long term loans - net of current maturities

 6,398 

  

 6,604 

   Deferred tax liabilities

 2,472 

  

 2,672 

   Others

 311 

  

 368 

   Total Non-current Liabilities

 9,181 

  

 9,644 

  

  

  

  

   Capital stock - Rp1,000,000 par value

  

  

  

        Authorized - 650,000 shares

  

  

  

        Issued and fully paid - 182,570 shares

 183 

  

 183 

   Additional paid-in capital

 1,505 

  

 1,505 

   Retained earnings

 29,368 

  

 32,518 

   Total Equity

 31,056 

  

 34,206 

  

  

  

  

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

 59,227 

  

 57,343 

 

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 16 of 17 

 

THE YEAR END 2010 Results (AUDITED) 

 

 

 

  

  

  

PT TELEKOMUNIKASI SELULAR (TELKOMSEL)

INCOME STATEMENT

FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

(In billions of Rupiah)

  

  

  

  

  

2009*

  

2010

OPERATING REVENUES

  

  

  

     Post-paid

 4,358 

  

 4,430 

     Prepaid

 36,093 

  

 36,724 

     International roaming

 1,236 

  

 1,228 

     Interconnection revenues

 2,528 

  

 2,658 

     Other (USO compensation & network lease)

 229 

  

 527 

Total Operating Revenues

 44,443 

  

 45,567 

  

  

  

  

OPERATING EXPENSES

  

  

  

     Personnel

 1,406 

  

 1,634 

     Operation & maintenance

 8,673 

  

 9,875 

     General & administrative

 791 

  

 854 

     Marketing

 1,213 

  

 1,428 

     Interconnection charges

 2,861 

  

 2,797 

     Other operating expenses

 2,168 

  

 2,381 

     Depreciation

 8,541 

  

 9,417 

     Total Operating Expenses

 25,653 

  

 28,386 

  

  

  

  

EBIT (EARNINGS BEFORE INTEREST & TAXES)

 18,791 

  

 17,181 

OTHER INCOME/(EXPENSES)

  

  

  

     Interest income & financing charges

 (945) 

  

 (788) 

     Foreign exchange gain

 336 

  

 59 

     Others - net

 90 

  

 117 

     Other income/(expenses) - net

 (519) 

  

 (612) 

  

  

  

  

INCOME BEFORE TAX

 18,272 

  

 16,569 

INCOME TAX EXPENSE

 5,112 

  

 4,207 

NET INCOME

 13,160 

  

 12,362 

  

  

  

  

EBITDA

 27,331 

  

 26,598 

EBITDA Margin - over gross oper. revenues

61%

  

58%

  

  

  

  

ROA

24%

  

21%

ROE

45%

  

38%

 

*as restated

 

No: TEL   65 /LP 000/COP-A00700000/2011     Pages 17 of 17