-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DC90LXdreVvCn4c1TA4xGwgBemm1QpQtXaER1cf6O0913n18+RkJbYc62BxHRyjB jz4cdEdhRHZSbBxqMcW2/w== 0001145549-03-000506.txt : 20030502 0001145549-03-000506.hdr.sgml : 20030502 20030502100855 ACCESSION NUMBER: 0001145549-03-000506 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK CENTRAL INDEX KEY: 0001001807 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 999999999 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14406 FILM NUMBER: 03678243 6-K 1 u92129e6vk.txt PT TELEKOMUNIKASI INDONESIA UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 APRIL FOR THE MONTH OF ___________________________________________ , 2003 PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA - -------------------------------------------------------------------------------- (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 [X] 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 [X] [IF "YES" IS MARKED, INDICATE BELOW THE FILE NUMBER ASSIGNED TO THE REGISTRANT IN CONNECTION WITH RULE 12g3-2(b): 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 --------------------------------------- (REGISTRANT) APRIL 30TH, 2003 /s/ Rochiman Sukarno DATE_______________________________ BY ____________________________________ (SIGNATURE) ROCHIMAN SUKARNO HEAD OF INVESTOR RELATION UNIT [TELKOM LOGO] INFO MEMO-Q1/2003 No.: 213/PR110/UHI/2003 Date: April 30, 2003 This document contains certain financial conditions and results 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 do not guarantee that any action, which should have been taken in reliance on this document will bring specific results as expected. TICKERS o NYSE: TLK o LSE: TKID o JSX: TLKM DIVISIONS - --------- o Telkom Regions: I, II, V, VI o KSO Regions: III, IV, VII SHARES IN ISSUE - ---------------- 10,079,999,639 shares MAJOR SHAREHOLDERS o Govt. of Indonesia 51.19% o Public 48.81% CONVERSION RATES (US$ 1.00) - --------------------------- 2003 =Rp. 8,720.00 (April 23 '03) 2002 =Rp. 9,275.00(May 13 '02) STOCK PERFORMANCE Q1/2003 [Chart of Stock Performance Q1/2003] Investor Relation Dept. PT. TELKOM Grha Citra Caraka Jl. Gatot Subroto Kav 52 Jakarta 12710 Phone: 62 21 5215109 Fax: 62 21 5220500 Email: investor@telkom.co.id Website: http//www.telkom.co.id FINANCIAL HIGHLIGHTS (CONSOLIDATED)
In billion Rp. -------------- KEY Q1*) Q1**) GROWTH INDICATORS 2002 2003 (%) ---------- ---- ---- ------ Operating Revenues 4,431,02 5,945.32 34.18 Operating Expenses 2,051,82 2,849.19 38.86 Operating Income 2,379,20 3,096.13 30.13 Net Income 1,498,76 1,660.31 10.78 EBITDA 3,149.73 4,093.57 29.97 Net Income per share (EPS) 148,79 164.71 10.78 Net Income per ADS 2,973.74 3,294.26 10.78
*) The consolidated subsidiaries Q1/2002: Telkomsel (77.72%), Infomedia (51%), Indonusa (57.50%), Graha Sarana Duta (99.99%), Dayamitra (90.32%) & KSO VI. **) Since July 2002, TELKOM share in Telkomsel decreased to 65%. and in August 2002 Pramindo Ikat Nusantara ("Pramindo") & KSO I entered into the consolidation. In January 2003, NAPSINDO (60%) consolidated to TELKOM. o INCREASE OF OPERATING REVENUES Total consolidated Operating Revenues grew by 34.18% to Rp 5,945.3 billion (US$ 681.8 million). The main contributor to the Operating Revenues were generated by Fixed Phone (33.76%), Cellular (30.23%) and Interconnection Revenues (15.91%). o INCREASE OF OPERATING EXPENSES Total consolidated Operating Expenses grew by 38.86% to Rp 2,849.2 billion (US$ 326.7 million).Personnel and Operation & Maintenance Expenses contributed to the Operating Expenses by 27.8% and 25.1%, respectively. o INCREASE OF OPERATING INCOME Total Operating Income grew by 30.13% to Rp.3,096.1 billion (US$.326.7 billion). o INCREASE OF NET INCOME For the first quarter 2003 the Company reported Net Income of Rp 1,660.3 billion (US$ 190.4 million), representing an increase of 10.78% compared to the comparable period of 2002. o STEADY GROWTH OF LINE IN SERVICE TELKOM recorded 7.8 million fixed lines in service, which grew by 6.83% consisted of 5.7 million lines in TELKOM Regions and 2.1 million lines in KSO Regions. The main contributors of the line in service growth were from TELKOM Regions-I (10.01%), Regions-V (7.60%) and Regions-VI (7.59%). o STRONG GROWTH IN CELLULAR SUBSCRIBERS As of March 31, 2003 Telkomsel recorded 6,600,468 subscribers which grew 76.82% compared to period of 2002. The total additional subscribers were 589,696 which was 22.66% compared to subscribers added during first quarter 2002. Page 1 of 17 PT. TELEKOMUNIKASI INDONESIA, TBK. ANNOUNCEMENT FOR THE FIRST QUARTER YEAR 2003 RESULTS CONSOLIDATED NET INCOME FOR THE FIRST QUARTER 2003 WAS Rp 1.66 TRILLION (OR 10.78% GROWTH) - -------------------------------------------------------------------------------- JAKARTA, APRIL 30TH, 2003 - PT Telekomunikasi Indonesia, Tbk. ("TELKOM"/"the Company"), today announced its unaudited consolidated financial statements and operational results for the first quarter 2003. All figures in this report are prepared in accordance with Generally Accepted Accounting Principles in Indonesia (Indonesian GAAP). BUSINESS HIGHLIGHT OPERATING REVENUES The main contributors to the Operating Revenues were: A. FIXED PHONE revenues amounted to Rp.2.0 trillion (grew by 20.58%) which were supported by the 6.95% of subscriber growth and impact of consolidation of KSO-I since August 2002 as well as 15% tariff increase since February 2002. B. CELLULAR revenues were Rp.1.7 trillion (grew by 33.95%) as a result of the significant growth rate in the number of prepaid subscribers whereas prepaid grew 99.5%. C. INTERCONNECTION revenues were Rp. 946 billion (grew by 113.65%), mainly as the result from cellular interconnection amounted to Rp.817.4 billion which was grew 127.23%. D. DATA AND INTERNET revenues were Rp. 579 billion (grew by 155.72%) mainly contributed by SMS revenues amounted to Rp.418.4 billion which was grew by 195.05%. While the other contributors were VoIP, TelkomNet Instan and Data & ISDN revenue amounted to Rp.50.6 billion (grew by 1,716.61%), Rp.54.5 billion (grew by 16.02%) and Rp.56.3 billion (grew by 60.02%), respectively. OPERATING EXPENSES The 38.86% growth of Operating Expenses were mainly contributed by: A. PERSONNEL expenses grew by 53.87%, which was mainly caused by the impact of consolidation of KSO-I and Pramindo amounted to Rp.185 billion and by the increase of TELKOM personnel expenses amounted Rp. 70 billion. If we do not consider the consolidation of KSO-I and Pramindo we record the personnel expense growth of only 18%. B. OPERATION, MAINTENANCE & TELECOMMUNICATIONS SERVICES expenses increase Rp. 261.5 billion (grew by 57.75%), which was mainly driven by the increase of Operation and Maintenance expenses by Rp.121.8 billion which was mainly due to 70% increase of Telkomsel's Operation and Maintenance expenses. The other telecommunications services expenses also increase i.e radio frequency charges increase by Rp.80 billion as well as building maintenance expenses amounted to Rp. 60 billion. C. MARKETING expenses grew by 36.88%, which was reflected by the 120.05% increase of promotion expenses such as TELKOM Rewards, TELKOM Flexi, TELKOMSMS, TELKOMNet Instan and TELKOM Global and TELKOMSave. NET INCOME For the first quarter 2003, the Company recorded 10.78% increase of consolidated Net Income which caused by the increase of Total Other Charges (316.53%) and by the Minority Interest in Net Income of Subsidiaries (157.31%). FIXED-LINES IN SERVICE As of March 31, 2003, TELKOM and all KSO Units recorded 7,825,152 fixed lines in service, consisting of 5,766,434 lines in service in TELKOM Regions, while 2,058,718 lines in service were in KSO Regions. Net additional lines in service during the first quarter 2003 were 75,117 lines, which was 28.96% lower to the figure of the comparable period of 2002. Of the net additional lines in service, 56,007 lines were in TELKOM Regions and 19,110 lines were in KSO Regions. As of March 31, 2003, the subscriber-mix consists of 18.57% business, 81.17% residential and 0.27% social subscribers. For the Operational Performance of the first quarter 2003, please refer to Table 4. FIXED-WIRELESS CDMA SERVICES As of March 31, 2003, the number of TELKOMFlexi subscribers in Surabaya, Denpasar and Balikpapan area were 2,432. CELLULAR SERVICES As of March 31, 2003, the number of active cellular subscribers of TELKOM's associated companies were 6,691,184. The breakdown for each operator is as follows:
OPERATOR, AND TELKOM'S % MARCH 31 MARCH 31 GROWTH OF OWNERSHIP 2002 2003 (%) - ------------ --------- --------- ------ TELKOMSEL (65.00) *) 3,732,788 6,600,468 76.82 KOMSELINDO (14.20) 38,245 23,485 (38.59) METROSEL (20.17) 78,519 51,778 (34.06) MOBISEL (25.00) 8,780 6,415 (26.94) TELESERA (100.00) 10,197 9,038 (11.37) --------- --------- ------ TOTAL 3,868,529 6,691,184 72.96 ========= ========= ======
*) Telkomsel's prepaid subscribers: 86% ARPU: Postpaid: Rp 305,000; total subs.: 944,413 Prepaid: Rp 93,000; total subs.: 5,656,055 Blended: Rp 125,000; total subs.: 6,600,468 Page 2 of 17 DATA AND INTERNET SERVICES By the end of March 2003, total usage access TELKOMNet Instan was 423.46 million minutes or grew 9.40% compared to the figure of the comparable period of last year. While the TELKOMSave and TELKOMGlobal usage access was 12.68 million minutes or grew 212.85% compared to the last year figure. CAPITAL EXPENDITURE TELKOM (AS INDIVIDUAL ENTITY) By March 31, 2003, CAPEX spent was Rp. 289.56 billion. Out of this amount, approximately Rp. 191.04 billion was spent for infrastructure development (transmission, data backbone and PSTN backbone), Rp. 89,99 billion for Phone-net (access, switching), View-net (HFC), Internet (B2B, VoIP, Multimedia), and Services (Billing, TelkomSMS, etc) and the remaining Rp. 8.53 billion was for supporting facilities (building and power plant). TELKOMSEL During the first quarter 2003, Telkomsel invested Rp 1,173 billion (US$131.67 million) for network infrastructures and other investments. A number of 420 new BTSs and 4,240 TRXs were installed and 1,120,000 subscribers capacity were added during the period. CONSOLIDATED DEBT*) The breakdown of debt portfolio (short-term and long-term) as of March 31, 2003 in original currencies and Rupiah equivalents was as follows:
ORIGINAL RUPIAH CURRENCIES YEAR CURRENCIES EQUIVALENT % - ---------- ---- ---------- ---------- ------ (MILLIONS) (BILLIONS) IDR/Rupiah 2002 4,639.67 4,639.67 40.58 2003 4,631.13 4,631.13 39.22 US Dollar 2002 533.94 5,227.26 45.72 2003 631.03 5,618.54 47.58 Japanese Yen 2002 18,150.24 1,340.36 11.72 2003 17,978.37 1,346.49 11.40 Euro 2002 26.14 225.98 1.98 2003 21.89 212.02 1.80 --------- ------ Total 2002 11,433.27 100.00 ========= ====== 2003 11,808.18 100.00 ========= ======
*) including short-term bank loan of Telkomsel As of March 31, 2003, 39.22% of the total consolidated debt portfolio was denominated in Rupiah and 60.78% was denominated in foreign currencies, whereas in the same period of 2002, 40.58% of TELKOM's debt portfolio was denominated in Rupiah and 59.42% was in foreign currencies. TELKOM'S DEBTS (AS INDIVIDUAL ENTITY) The breakdown of TELKOM portfolio (unconsolidated short-term and long-term) as of March 31, 2003 was as follows:
ORIGINAL RUPIAH CURRENCIES YEAR CURRENCIES EQUIVALENT % - ---------- ---- ---------- ---------- ------ (MILLIONS) (BILLIONS) IDR/Rupiah*) 2002 4,224.62 4,224.62 38.34 2003 4,621.98 4,621.98 46.41 US Dollar 2002 533.94 5,227.26 47.44 2003 424.26 3,778.02 37.94 Japanese Yen 2002 18,150.24 1,340.36 12.16 2003 17,978.37 1,346.49 13.52 Euro 2002 26.14 225.98 2.05 2003 21.89 212.02 2.13 --------- ------ Total 2002 11,018.22 100.00 ========= ====== 2003 9,958.51 100.00 ========= ======
*) in billions As of March 31, 2003, 46.41% of loan portfolio was denominated in Rupiah and 53.59% was denominated in foreign currencies, whereas in the same period of 2002, 38.34% was denominated in Rupiah and 61.66% was in foreign currencies. TELKOM hedges its foreign currencies exposures through time deposit placement, mainly in US Dollar. As of March 31, 2003, the Company's deposit was US$ 221.1 million, covering approximately 29.98% of all obligations in foreign currencies from April 1, 2003 to February 28, 2004. HUMAN RESOURCES As of March 31, 2003 TELKOM (as individual entity), employees were 34,630 persons consisting of 24,520 persons in TELKOM Regions and 10,110 persons in the KSO Regions. Productivity per employee as measured by the number of fixed lines in service per employee as at March 31, 2003 was 225.96 while as at March 31, 2002 was 197.86. RECENT DEVELOPMENT INCREASE THE OWNERSHIP OF NAPSINDO On January 8, 2003 TELKOM increase the ownership on PT Napsindo by acquiring 28% interest from other shareholder parties (PT Info Asia Sukses Mandiri) therefore ownership goes to 60% and beginning first quarter 2003 Napsindo has been consolidated to TELKOM. Napsindo's primary business is Network Access Point (NAP) for Internet Traffic Consolidation in Indonesia. PENDING ARBITRATION PROCEEDING TELKOM and AriaWest shareholders have agreed to prolong the pending of the arbitration proceeding between TELKOM and AWI before the International Chamber of Commerce Court of Arbitration which previously set on April 17, 2003 to be extended until June 17, 2003 as a token of good faith to resume AWI's debt restructuring with its lenders. /s/ Woeryanto Soeradji - ------------------------------ WOERYANTO SOERADJI Corporate Secretary JAKARTA, APRIL 30, 2003 Page 3 of 17 TABLE-1.a PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, TBK BALANCE SHEET MARCH 31, 2002 AND 2003 (IN MILLIONS OF RUPIAH AND THOUSANDS OF U.S. DOLLAR)
CONSOLIDATED ------------------------------------ UNCONSOL. 2002 2003 2003 ---------- ----------------------- ---------- Rp Rp US $ Rp ---------- ---------- --------- ---------- ASSETS CURRENT ASSETS Cash and cash equivalents 3,026,655 6,201,912 711,228 4,722,129 TEMPORARY INVESTMENTS 551,500 10,000 1,147 -- ---------- ---------- --------- ---------- SUB TOTAL 3,578,155 6,211,912 712,375 4,722,129 ---------- ---------- --------- ---------- Trade accounts receivables Related parties - net of allowance for doubtful accounts of Rp 360,422 million in 2002 and Rp 592,478 million in 2003 1,148,980 1,381,273 158,403 1,709,242 Third parties - net of allowance for doubtful accounts of Rp 281,101 million in 2002 and Rp 344,577 million in 2003 1,390,095 1,930,125 221,345 1,142,982 ---------- ---------- --------- ---------- SUB TOTAL 2,539,075 3,311,398 379,748 2,852,224 ---------- ---------- --------- ---------- Other account receivables - net of allowance for doubtful accounts Rp 28,949 million in 2002 and Rp 21,648 million in 2003 119,444 227,311 26,068 1,083,279 Inventories - net of allowance for obsolescence of Rp 51,193 million in 2002 and Rp 51,002 million in 2003 195,152 155,461 17,828 71,637 Prepaid expenses 360,802 555,564 63,711 243,902 Prepaid taxes -- -- -- Other current Assets 304,405 119,910 13,751 16,092 ---------- ---------- --------- ---------- TOTAL CURRENT ASSETS 7,097,033 10,581,556 1,213,481 8,989,263 ---------- ---------- --------- ---------- NON CURRENT ASSETS Long-term investments - net 182,224 176,733 20,268 5,388,994 Property, plant and equipment - net of accumulated depreciation of Rp 16,675,761 million in 2002 and Rp 20,721,166 million in 2003 22,829,078 28,689,571 3,290,088 15,967,901 Property, plant and equipment under revenue sharing arrangements - net of accumulated depreciation of Rp 862,222 million in 2002 and Rp 861,681 million in 2003 431,428 358,905 41,159 358,905 Advances and other non current assets 391,734 420,251 47,429 327,242 Intangible assets 1,228,157 2,008,387 231,085 2,008,387 Advances payment for investment in share of stock 34,802 255,505 29,301 255,505 Escrow accounts 140,590 253,945 29,122 253,264 Property not used in operations 3,421 6,219 713 6,219 ---------- ---------- --------- ---------- TOTAL NON CURRENT ASSETS 25,241,434 32,169,516 3,689,165 24,566,417 ---------- ---------- --------- ---------- TOTAL ASSETS 32,338,467 42,751,072 4,902,646 33,555,680 ========== ========== ========= ==========
Page 5 of 17 TABLE-1.B (CONTINUED) PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, TBK BALANCE SHEET MARCH 31, 2002 AND 2003 (IN MILLIONS OF RUPIAH AND THOUSANDS OF U.S. DOLLAR)
CONSOLIDATED ------------------------------------ UNCONSOL. 2002 2003 2003 ---------- ---------- --------- ---------- Rp Rp US $ Rp LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable Related parties 881,808 882,044 101,152 569,351 Third parties 917,354 2,056,162 235,798 855,759 Other accounts payable 72,704 58,706 6,732 36,087 Taxes payable 1,227,276 707,898 81,181 407,349 Dividend payable 9,084 404,093 46,341 1,713 Accrued expenses 1,208,966 2,442,995 280,160 1,971,006 Unearned income 278,849 483,069 55,398 57,880 Advances from customers and suppliers 326,068 1,136,022 130,278 995,008 Short term bank loan 500,000 52,374 6,006 -- Current maturities of long-term debts 1,748,714 1,453,748 166,714 1,228,210 Liabilities for cross-ownership transaction 1,693,377 -- -- -- ---------- ---------- --------- ---------- TOTAL CURRENT LIABILITIES 8,864,200 9,677,111 1,109,760 6,122,363 ---------- ---------- --------- ---------- NON CURRENT LIABILITIES Deferred tax liabilities - net 1,814,281 1,592,610 182,639 874,356 Unearned income under revenue sharing arrangements 208,110 151,023 17,319 151,023 Unearned initial investor payment under joint operation scheme 87,987 64,781 7,429 118,957 LONG-TERM DEBTS - NET OF CURRENT MATURITIES Two-step loans - related parties 8,269,600 7,525,787 863,049 7,525,787 Suppliers' credit loans 370,072 173,656 19,915 -- Bridging loan 104,365 53,077 6,087 -- Project cost payable 315,195 12,523 1,436 12,523 Bond payable and guaranteed notes -- 2,332,893 267,534 1,000,000 Bank loan -- 135,101 15,493 135,101 Other long-term debts 819 69,022 7,915 56,893 Liability for acquisition of a subsidiaries 124,509 -- -- ---------- ---------- --------- ---------- SUB TOTAL LONG-TERM DEBTS 9,184,560 10,302,059 1,181,429 8,730,304 ---------- ---------- --------- ---------- TOTAL NON CURRENT LIABILITIES 11,294,938 12,110,473 1,388,816 9,874,640 ---------- ---------- --------- ---------- MINORITY INTEREST IN NET ASSETS OF SUBSIDIARY 1,366,427 3,404,811 390,459 -- EQUITY Capital stock - Rp 500 par value per series-A Dwiwarna share and series-B shares. Authorized - 1 A Dwiwarna share and 39.999.999.999 B shares Issued and fully paid - 1 A Dwiwarna share and 10.079.999.639 B shares 5,040,000 5,040,000 577,982 5,040,000 Additional paid-in capital 1,073,333 1,073,333 123,089 1,073,333 Difference in value of restructuring transactions between entities under common control (7,402,343) (7,032,455) (806,474) (7,032,455) Difference due to change of equity in associated companies 332,987 342,425 39,269 342,425 Transaction adjustment 179,672 164,153 18,825 164,153 Unrealized loss on decline in value of securities (207) -- Retained earning: Appropriated 320,393 745,403 85,482 745,403 Un-appropriated 11,269,067 17,225,818 1,975,438 17,225,818 ---------- ---------- --------- ---------- TOTAL EQUITY 10,812,902 17,558,677 2,013,611 17,558,677 ---------- ---------- --------- ---------- TOTAL LIABILITIES AND EQUITY 32,338,467 42,751,072 4,902,646 33,555,680 ========== ========== ========= ==========
Page 6 of 17 TABLE-2 PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, TBK STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2003 (IN MILLIONS OF RUPIAH AND THOUSANDS OF U.S. DOLLAR, EXCEPT SHARE AND ADS DATA)
CONSOLIDATED ------------------------------------- UNCONSOL. 2002 2003 2003 --------- ----------------------- --------- Rp Rp US $ Rp OPERATING REVENUE Telephone Fixed phone 1,664,415 2,006,997 230,160 1,401,357 Cellular 1,341,551 1,797,072 206,086 -- Interconnection revenues 442,806 946,073 108,495 683,424 Revenue under joint operation scheme 609,524 427,362 49,009 693,708 Data and internet 226,741 579,822 66,493 130,034 Network 74,864 122,387 14,035 208,085 Revenues under revenue sharing arrangement 69,934 64,165 7,358 64,056 Other telecommunications services 1,184 1,444 166 511 --------- --------- ------- --------- TOTAL OPERATING REVENUE 4,431,019 5,945,322 681,802 3,181,175 ========= ========= ======= ========= OPERATING EXPENSES Personnel 515,388 793,022 90,943 477,802 Depreciation 770,538 997,436 114,385 563,063 Operation, maintenance and telecommunications services 452,917 714,463 81,934 265,036 General and administrative 245,511 251,914 28,889 146,418 Marketing 67,469 92,354 10,591 42,138 --------- --------- ------- --------- TOTAL OPERATING EXPENSES 2,051,823 2,849,189 326,742 1,494,457 ========= ========= ======= ========= OPERATING INCOME 2,379,196 3,096,133 355,060 1,686,718 ========= ========= ======= ========= OTHER INCOME (CHARGES) Interest income 122,288 103,971 11,923 82,441 Interest expense (443,731) (334,781) (38,392) (287,027) Gain (loss) on foreign exchange - net 222,568 65,641 7,528 65,306 Equity in net income (loss) of associated companies 334 357 41 622,095 Others - net 51,378 (31,634) (3,628) (61,798) TOTAL OTHER INCOME (CHARGES) (47,163) (196,446) (22,528) 421,017 INCOME BEFORE TAX 2,332,033 2,899,687 332,532 2,107,735 TAX EXPENSE (694,342) (881,549) (101,095) (447,427) INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES 1,637,691 2,018,138 231,437 1,660,308 PRE ACQUISITION (INCOME) LOSS OF SUBSIDIARIES -- 351 40 -- MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES (138,927) (357,479) (40,995) -- NET INCOME 1,498,764 1,660,308 190,402 1,660,308 NET INCOME PER SHARE 148.69 164.71 0.02 164.71 NET INCOME PER ADS (20 SERIES-B SHARES PER ADS) 2,973.74 3,294.26 0.38 3,294.26
Page 7 of 17 TABLE-3.A: BREAKDOWN OF THE STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2003
2002 2003 GROWTH (Rp. MILLION) (Rp. MILLION) (%) ------------- ------------- ------------ 1 2 3 4 = (3-2)/2 OPERATING REVENUE FIXED PHONE Local 479,904 529,670 10.37 Long distance 744,771 945,129 26.90 Monthly subscription charges 382,639 436,682 14.12 Instalation charges 30,016 40,818 35.99 Phone card - net 5,873 8,437 43.66 Others 21,212 46,261 118.09 --------- --------- -------- TOTAL FIXED PHONE REVENUES 1,664,415 2,006,997 20.58 ========= ========= ======== CELLULAR 1,341,551 1,797,072 33.95 INTERCONNECTION International calls 66,740 119,949 79.73 Cellular 359,738 792,907 120.41 Others 16,328 33,218 103.44 --------- --------- -------- TOTAL INTERCONNECTION REVENUES 442,806 946,074 113.65 ========= ========= ======== REVENUE UNDER JOINT OPERATION SCHEME (JOS) Minimum TELKOM Revenue (MTR) 382,832 268,247 (29.93) Distributable TELKOM Revenue (DTR) 224,340 156,446 (30.26) Amortization of Initial Investor Payments 2,352 2,669 13.48 --------- --------- -------- TOTAL REVENUE UNDER JOS 609,524 427,362 (29.89) ========= ========= ======== DATA AND INTERNET SMS 141,808 418,407 195.05 Multimedia 60,972 92,189 51.20 VOiP 2,787 50,629 1,716.61 ISDN 21,174 18,597 (12.17) --------- --------- -------- TOTAL DATA AND INTERNET REVENUES 226,741 579,822 155.72 ========= ========= ======== NETWORK Leased lines 23,438 43,526 85.71 Satellite transponder 51,426 78,861 53.35 --------- --------- -------- TOTAL NETWORK REVENUES 74,864 122,387 63.48 ========= ========= ======== REVENUES UNDER REVENUE SHARING ARRANGEMENT 69,934 64,165 (8.25) OTHER TELECOMMUNICATION SERVICES (OTS) Telex and telegram 1,184 694 (41.39) Others -- 750 -- --------- --------- -------- TOTAL OTS REVENUES 1,184 1,444 21.96 ========= ========= ======== TOTAL OPERATING REVENUES 4,431,019 5,945,323 34.18 ========= ========= ======== OPERATING EXPENSES PERSONNEL 515,388 793,022 53.87 DEPRECIATION 770,538 997,436 29.45 OPERATION, MAINTENANCE AND TELECOMMUNICATIONS SERVICES Operation and maintenance 193,193 314,997 63.05 Cost of phone cards 59,595 33,910 (43.10) Others 200,129 365,556 82.66 --------- --------- -------- TOTAL O & M 452,917 714,463 57.75 ========= ========= ======== GENERAL AND ADMINISTRATIVE Provision for DOUBTFUL account and inventory obsolescence 67,534 68,715 1.75 Training, education and recruitment 20,291 18,818 (7.26) Research, development and professional fees 48,505 14,616 (69.87) Others 109,181 149,765 37.17 --------- --------- -------- TOTAL G & A 245,511 251,914 2.61 ========= ========= ======== MARKETING 67,469 92,354 36.88 --------- --------- -------- TOTAL OPERATING EXPENSES 2,051,823 2,849,189 38.86 ========= ========= ======== OPERATING INCOME 2,379,196 3,096,134 30.13 ========= ========= ========
Page 8 of 17 TABLE-3.B. (CONTINUED) BREAKDOWN OF THE STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2003
2002 2003 GROWTH (Rp. MILLION) (Rp. MILLION) (%) ------------- ------------- ----------- 1 2 3 4 = (3-2)/2 OPERATING INCOME 2,379,196 3,096,133 30.13 OTHER INCOME (CHARGE) -- -- -- Interest income 122,288 103,971 (14.98) Interest expense (443,731) (334,781) (24.55) Gain (loss) on foreign exchange - net 222,568 65,641 (70.51) Equity in net income (loss) of associated companies 334 357 6.89 Others 51,378 (31,634) (161.57) TOTAL OTHER INCOME (CHARGE) (47,163) (196,446) 316.53 INCOME BEFORE TAX 2,332,033 2,899,687 24.34 TAX EXPENSE Current tax (641,477) (812,872) 26.72 Deferred tax (52,865) (68,677) 29.91 TOTAL TAX EXPENSE (694,342) (881,549) 26.96 INCOME BEFORE MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES 1,637,691 2,018,138 23.23 PRE ACQUISITION (INCOME) LOSS -- 351 -- MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES (138,927) (357,479) 157.31 NET INCOME 1,498,764 1,660,308 10.78 NET INCOME PER SHARE 148.69 164.71 10.78 NET INCOME PER ADS (20 B SHARE PER ADS) 2,973.74 3,294.26 10.78
Page 9 of 17 TABLE-3.C: FINANCIAL RATIOS FOR THE THREE MONTHS ENDED MARCH 31, 2002 & 2003
GROWTH 2002 2003 (%) --------- --------- ---------- 1 2 3 4=(3-2)/2 Contribution of pulses to total fixed-phone revenue: Local Calls (%) 28.83 26.39 (2.44) Domestic Long Distance Calls (%) 44.75 47.09 2.34 Monthly subscription charges (%) 22.99 21.76 (1.23) Installation charges (%) 1.80 2.03 0.23 Phone-card 0.35 0.42 0.07 Others (%) 1.27 2.30 1.03 Contribution to total operating revenues: Cellular (%) 30.28 30.23 (0.05) Fixed-phone (%) 37.56 33.76 (3.80) Revenue under JOS (%) 13.76 7.19 (6.57) Interconnection (%) 9.99 15.91 5.92 Network (%) 1.69 2.06 0.37 Data dan internet (%) 5.12 9.75 4.63 Revenue under RSA (%) 1.58 1.08 (0.50) Other telecommunications services (%) 0.03 0.02 (0.01) Average Fixed Phone Revenue per user/month 144,344 173,384 20.12 EBITDA (Rp million) *) 3,149,734 4,093,569 29.97 EBITDA margin (%) 71.08 68.85 (2.23) Operating margin (%) 53.69 52.08 (1.62) Profit Margin (%) 33.82 27.93 (5.90) Current ratio (%) 80.06 109.35 29.28 Return on Assets (%) 4.63 3.88 (0.75) Return on Equity (%) 13.86 9.46 (4.41) Average collection period (days) 44.26 49.28 5.02 Average on Allowance for Bad Debt (%) **) 25.27 28.79 3.52 Gearing (Net Debt to Equity) (%) 88.31 31.87 (56.44)
Page 10 of 17 TABLE 4.A.: FIXED-LINE AS OF MARCH 31, 2002 & 2003
GROWTH UNIT 2002* 2003 (%) ----- --------------------- --------- ----------- 1 2 3a 3b 4 5=(4-3b)/3b EXCHANGE CAPACITY TELKOM Division Lines 5,144,905 6,369,667 6,803,342 6.81 KSO Division Lines 3,673,747 2,448,985 2,452,173 0.13 --------- --------- --------- ---- TOTAL EXCHANGE CAP (KSO & TELKOM DIVISION) LINES 8,818,652 8,818,652 9,255,515 4.95 ========= ========= ========= ==== INSTALLED LINES TELKOM Division Lines 4,765,446 5,913,060 6,270,161 6.04 KSO Division Lines 3,348,552 2,200,938 2,247,658 2.12 --------- --------- --------- ---- TOTAL INSTALLED LINES (KSO & TELKOM DIVISIONS) LINES 8,113,998 8,113,998 8,517,819 4.98 ========= ========= ========= ==== SUBSCRIBERS - TELKOM DIVISION: Non PBH Subscribers: Lines 3,647,216 4,649,716 5,022,437 8.02 PBH Subscribers Lines 417,647 418,933 426,271 1.75 --------- --------- --------- ---- TOTAL SUBSCRIBERS (TELKOM DIVISIONS) LINES 4,064,863 5,068,649 5,448,708 7.50 ========= ========= ========= ==== SUBSCRIBERS - KSO DIVISION: Non PBH Subscribers: Lines 2,857,296 1,854,796 1,957,854 5.56 PBH Subscribers Lines 16,293 15,007 14,308 (4.66) --------- --------- --------- ---- TOTAL SUBSCRIBERS ( KSO DIVISION) LINES 2,873,589 1,869,803 1,972,162 5.47 ========= ========= ========= ==== SUBSCRIBERS - TELKOM & KSO DIVISION Non PBH Subscribers: Lines 6,504,512 6,504,512 6,980,291 7.31 PBH Subscribers Lines 433,940 433,940 440,579 1.53 --------- --------- --------- ---- TOTAL SUBSCRIBERS (TELKOM & KSO DIVISION) LINES 6,938,452 6,938,452 7,420,870 6.95 ========= ========= ========= ==== PUBLIC PHONE - TELKOM DIVISION: Coin-phone Lines 53,151 60,817 52,717 (13.32) Card-phone Lines 45,594 47,861 42,237 (11.75) --------- --------- --------- ----- TOTAL PAYPHONE LINES 98,745 108,678 94,954 (12.63) ========= ========= ========= ===== Wartel Lines 169,347 188,802 222,772 17.99 --------- --------- --------- ----- TOTAL PUBLIC PHONE TELKOM DIVISION LINES 268,092 297,480 317,726 6.81 ========= ========= ========= ==== PUBLIC PHONE - KSO DIVISION : Coin-phone Lines 32,275 24,609 21,295 (13.47) Card-phone Lines 13,823 11,556 8,740 (24.37) --------- --------- --------- ----- TOTAL PAYPHONE LINES 46,098 36,165 30,035 (16.95) ========= ========= ========= ===== Wartel Lines 72,036 52,581 56,521 7.49 --------- --------- --------- ---- TOTAL PUBLIC PHONE KSO DIVISION LINES 118,134 88,746 86,556 (2.47) ========= ========= ========= ==== PUBLIC PHONE (TELKOM & KSO DIVISION) Coin-phone Lines 85,426 85,426 74,012 (13.36) Card-phone Lines 59,417 59,417 50,977 (14.20) --------- --------- --------- ----- TOTAL PAYPHONE LINES 144,843 144,843 124,989 (13.71) ========= ========= ========= ===== Wartel/Kiosk/TUT Lines 241,383 241,383 279,293 15.71 --------- --------- --------- ----- TOTAL PUBLIC PHONE (TELKOM & KSO DIVISION) LINES 386,226 386,226 404,282 4.67 ========= ========= ========= ==== LINES IN SERVICE TELKOM Division Lines 4,332,955 5,366,129 5,766,434 7.46 KSO Division Lines 2,991,723 1,958,549 2,058,718 5.11 --------- --------- --------- ---- TOTAL LINES IN SERVICE (TELKOM & KSO DIVISION) LINES 7,324,678 7,324,678 7,825,152 6.83 ========= ========= ========= ====
*) COLUMN 3A COLUMN 3B COLUMN 4 -------------------------------- ----------------------------- ------------------------------- TELKOM DIVISION INCLUDES: TELKOM DIVISION INCLUDES: TELKOM DIVISION INCLUDES: -------------------------------- ----------------------------- ------------------------------- Regional Division-II Jakarta Regional Division-I Sumatera Regional Division-I Sumatera Regional Division-V East Java Regional Division-II Jakarta Regional Division-II Jakarta Regional Division-VI Kalimantan Regional Division-V East Java Regional Division-V East Java Regional Division-VI Kalimantan Regional Division-VI Kalimantan
Page 11 of 17 TABLE 4.B.: PULSE PRODUCTION FOR THE THREE MONTHS ENDED MARCH 31, 2002 & 2003
GROWTH UNIT 2002* 2003 (%) ------------ ------------------------------- -------------- -------- 1 2 3a 3b 4 5=(4-3b)/3b PULSE PRODUCTION: SUBSCRIBERS - TELKOM DIVISION: Non-PBH Subscribers Pulses 7,621,221,479 9,932,441,900 9,803,304,286 -1.30 PBH Subscribers Pulses 984,667,091 990,398,733 941,058,821 -4.98 ------------- ------------- ------------- ----- TOTAL PULSE PRODUCTION - TELKOM DIVISION PULSES 8,605,888,570 10,922,840,633 10,744,363,107 -1.63 ============== ============== ============== ==== SUBSCRIBERS - KSO DIVISION: Non-PBH Subscribers Pulses 6,475,946,026 4,164,725,605 3,888,376,374 -6.64 PBH Subscribers Pulses 35,605,027 29,873,385 26,160,664 -12.43 ------------- ------------- ------------- ----- TOTAL PULSE PRODUCTION - KSO DIVISION PULSES 6,511,551,053 4,194,598,990 3,914,537,038 -6.68 ============== ============== ============== ==== SUBSCRIBERS (TELKOM & KSO DIVISION) Non-PBH Subscribers Pulses 14,097,167,505 14,097,167,505 13,691,680,660 -2.88 PBH Subscribers Pulses 1,020,272,118 1,020,272,118 967,219,485 -5.20 ------------- ------------- ------------- ----- TOTAL PULSE PRODUCTION - KSO & TELKOM DIVISION PULSES 15,117,439,623 15,117,439,623 14,658,900,145 -3.03 ============== ============== ============== ==== PUBLIC PHONES - TELKOM DIVISION Coin Pulses 108,405,542 129,691,250 102,623,013 -20.87 Card-phone Pulses 27,432,862 35,277,564 25,343,569 -28.16 Wartel Pulses 2,257,167,595 3,026,405,401 2,836,178,502 -6.29 ------------- ------------- ------------- ----- TOTAL PUBLIC PHONE - TELKOM DIVISION PULSES 2,393,005,999 3,191,374,215 2,964,145,084 -7.12 ============== ============== ============== ==== PUBLIC PHONES - KSO DIVISION Coin Pulses 75,875,276 54,589,568 37,263,132 -31.74 Card-phone Pulses 18,173,557 10,328,855 5,605,492 -45.73 Wartel Pulses 2,536,895,650 1,767,657,844 1,369,017,597 -22.55 ------------- ------------- ------------- ----- TOTAL PUBLIC PHONE - KSO DIVISION PULSES 2,630,944,483 1,832,576,267 1,411,886,221 -22.96 ============== ============== ============== ==== PUBLIC PHONES - TELKOM & KSO DIVISION Coin Pulses 184,280,818 184,280,818 139,886,145 -24.09 Card-phone Pulses 45,606,419 45,606,419 30,949,061 -32.14 Wartel Pulses 4,794,063,245 4,794,063,245 4,205,196,099 -12.28 ------------- ------------- ------------- ----- TOTAL PUBLIC PHONE - TELKOM & KSO DIVISION PULSES 5,023,950,482 5,023,950,482 4,376,031,305 -12.90 ============== ============== ============== ==== LINES IN SERVICE- PRODUCTION TELKOM Division Pulses 10,998,894,569 14,114,214,848 13,708,508,191 -2.87 KSO Division Pulses 9,142,495,536 6,027,175,257 5,326,423,258 -11.63 ------------- ------------- ------------- ----- TOTAL LIS'S PULSE PRODUCTION (TELKOM&KSO DIV,) PULSES 20,141,390,105 20,141,390,105 19,034,931,449 -5.49 ============== ============== ============== ==== PULSES PER AVERAGE SUBSCRIBER LINE TELKOM Division Pulses/line 2,133 2,173 1,982 -8.79 KSO Division Pulses/line 2,283 2,254 1,995 -11.49 PULSES PER AVRG, SUBSCR, LINE (TELKOM&KSO) Pulses/line 2,195 2,195 1,985 -9.57 PULSES PER AVERAGE LIS TELKOM Division Pulses/line 2,557 2,652 2,389 -9.92 KSO Division Pulses/line 3,078 3,091 2,599 -15.92 PULSES PER AVERAGE LIS (TELKOM&KSO) PULSES/LINE 2,770 2,770 2,444 -11.77
*) COLUMN 3A COLUMN 3B COLUMN 4 --------------------------------- ------------------------------- ------------------------------- TELKOM DIVISION INCLUDES: TELKOM DIVISION INCLUDES: TELKOM DIVISION INCLUDES: --------------------------------- ------------------------------- ------------------------------- Regional Division-II Jakarta Regional Division-I Sumatera Regional Division-I Sumatera Regional Division-V East Java Regional Division-II Jakarta Regional Division-II Jakarta Regional Division-VI Kalimantan Regional Division-V East Java Regional Division-V East Java Regional Division-VI Kalimantan Regional Division-VI Kalimantan
Page 12 of 17 TABLE-4.C.: OPERATIONAL RATIO AS AT MARCH 31, 2002 & 2003
GROWTH FIXED-LINE PHONE UNIT 2002* 2003 (%) ---------------- ------- ------------------ -------- ---------- 1 2 3a 3b 4 5=(4-3b) SUBSCRIBER MIX - TELKOM DIVISION Business Percent 19.79 19.01 19.62 0.61 Residential Percent 80.03 80.77 80.17 -0.60 Social Percent 0.19 0.22 0.21 -0.01 SUBSCRIBER MIX - KSO DIVISION Business Percent 15.51 15.31 15.64 0.33 Residential Percent 84.07 84.23 83.93 -0.31 Social Percent 0.42 0.46 0.43 -0.03 SUBSCRIBER MIX - TELKOM & KSO DIVISION Business Percent 18.02 18.02 18.57 0.55 Residential Percent 81.70 81.70 81.17 -0.53 Social Percent 0.28 0.28 0.27 -0.02 PULSES (LOCAL & DLD), SUBSCRIBER (TELKOM & KSO) Local Percent 33.52 33.52 31.89 -1.63 DLD Percent 66.48 66.48 68.11 1.63 UTILIZATION RATE (LIS/IL) TELKOM Division Percent 90.92 90.75 91.97 1.22 KSO Division Percent 89.34 88.99 91.59 2.61 UTILIZATION RATE (TELKOM & KSO DIVISION) PERCENT 90.27 90.27 91.87 1.6 OCCUPANCY RATE (TELKOM & KSO DIVISION) TELKOM Division Percent 84.80 84.86 85.30 0.44 KSO Division Percent 82.16 80.69 84.74 4.05 ----- ----- ----- ---- TOTAL OCCUPANCY RATE (TELKOM & KSO DIVISION) PERCENT 83.70 83.70 85.15 1.45 ===== ===== ===== ==== CALL COMPLETION RATE (TELKOM & KSO DIVISION) Local Percent 73.95 73.95 75.60 1.65 Domestic Long Distance Percent 64.70 64.70 66.59 1.88 EMPLOYEES TELKOM Division Persons 20,113 25,874 24,520 -5.23 KSO Division Persons 16,907 11,146 10,110 -9.29 EMPLOYEES (TELKOM & KSO DIVISION) PERSONS 37,020 37,020 34,630 -6.46 PRODUCTIVITY ( LIS/EMPLOYEES) TELKOM Division Lines/ 215.43 207.39 235.17 13.39 Empl KSO Division Lines/ 176.95 175.72 203.63 15.89 Empl PRODUCTIVITY (TELKOM & KSO DIVISION) LINES/ 197.86 197.86 225.96 14.21 EMPL DENSITY ( LIS PER 100 INHABITANTS) TELKOM Division Percent 5.51 4.29 4.55 0.26 KSO Division Percent 2.06 1.98 2.01 0.03 DENSITY (TELKOM & KSO DIVISION) PERCENT 3.27 3.27 3.42 0.15
*) COLUMN 3A COLUMN 3B COLUMN 4 --------------------------------- ------------------------------- ------------------------------- TELKOM DIVISION INCLUDES: TELKOM DIVISION INCLUDES: TELKOM DIVISION INCLUDES: --------------------------------- ------------------------------- ------------------------------- Regional Division-II Jakarta Regional Division-I Sumatera Regional Division-I Sumatera Regional Division-V East Java Regional Division-II Jakarta Regional Division-II Jakarta Regional Division-VI Kalimantan Regional Division-V East Java Regional Division-V East Java Regional Division-VI Regional Division-VI Kalimantan Kalimantan
Page 13 of 17 KSO PERFORMANCE FOR FIRST QUARTER, 2003
KSO-I KSO-III KSO-IV KSO-VI KSO-VII TOTAL ------- ------- ------- ------- -------- ------- (million of Rupiah) Minimum TELKOM Revenue 129,509 103,874 101,070 35,849 63,302 433,604 Distributable TELKOM Revenue 93,934 33,974 41,331 31,206 55,820 256,266 ------- ------- ------- ------ ------- ------- Total 223,443 137,849 142,401 67,055 119,123 689,870 ======= ======= ======= ====== ======= =======
OPERATIONAL PERFORMANCE REGIONAL DIVISION
Regional Division Mar 31, 2002 Mar 31, 2003 Growth (%) ---------- ----------------- ----------------- ------------ Exchange capacity (lines) I 1,224,762 1,269,208 3.63 II 3,218,389 3,396,484 5.53 III 878,644 868,654 -1.14 IV 770,254 770,289 0.00 V 1,534,454 1,726,392 12.51 VI 392,062 411,258 4.90 VII 800,087 813,230 1.64 -------------- -------------- ------ Total 8,818,652 9,255,515 4.95 ============== ============== ====== Installed lines I 1,147,614 1,213,454 5.74 II 2,957,197 3,116,494 5.39 III 707,842 731,463 3.34 IV 729,540 731,260 0.24 V 1,452,145 1,549,905 6.73 VI 356,104 390,308 9.61 VII 763,556 784,935 2.80 -------------- -------------- ------ Total 8,113,998 8,517,819 4.98 ============== ============== ====== Subscribers I 1,003,786 1,096,507 9.24 II 2,508,682 2,666,121 6.28 III 614,040 652,804 6.31 IV 594,858 619,458 4.14 V 1,244,997 1,351,050 8.52 VI 311,184 335,030 7.66 VII 660,905 699,900 5.90 -------------- -------------- ------ Total 6,938,452 7,420,870 6.95 ============== ============== ====== Lines in service I 1,033,174 1,136,553 10.01 II 2,659,147 2,828,866 6.38 III 648,144 682,988 5.38 IV 624,823 650,258 4.07 V 1,349,708 1,452,331 7.60 VI 324,100 348,684 7.59 VII 685,582 725,472 5.82 -------------- -------------- ------ Total 7,324,678 7,825,152 6.83 ============== ============== ====== LIS pulse production (pulses) I 3,115,320,279 3,109,912,383 -0.17 II 6,767,509,666 6,523,373,823 -3.61 III 1,608,554,407 1,538,489,429 -4.36 IV 2,196,448,833 1,664,872,327 -24.20 V 3,018,354,322 2,930,762,708 -2.90 VI 1,213,030,581 1,144,459,278 -5.65 VII 2,222,172,017 2,123,061,502 -4.46 -------------- -------------- ------ Total 20,141,390,105 19,034,931,450 -5.49 ============== ============== ======
Page 14 of 17 Attachment: TABLE-6 PT TELEKOMUNIKASI SELULAR (TELKOMSEL) BALANCE SHEETS AS OF MARCH 31, 2002 AND 2003 (In Millions of Rupiah and Thousands of U.S. Dollar)
GROWTH A S S E T S 2002 2003 (%) - ----------- ---------- ------------------------- ---------- Rp Rp U.S.$ CURRENT ASSETS Cash and cash equivalents 588,862 1,110,873 127,394 88.65 Trade accounts receivables 315,799 161,755 18,550 (48.78) Accrued Income - net of allowance for doubtful accounts 280,915 322,369 36,969 14.76 Inventories - net of allowance for obsolescence 59,638 49,822 5,714 (16.46) Prepaid tax and expense 80,218 215,321 24,693 168.42 Advances 145,100 7,770 891 (94.65) Others 304,405 103,818 11,906 (65.89) --------- ---------- --------- ------ TOTAL CURRENT ASSETS 1,774,937 1,971,728 226,116 11.09 ========= ========== ========= ====== PROPERTY, PLANT AND EQUIPMENT (PPE) Fixed assets 7,948,555 13,009,795 1,491,949 63.67 Accumulated depreciation (1,650,689) (2,721,919) (312,147) 64.90 --------- ---------- --------- ------ TOTAL PPE. - NET 6,297,866 10,287,876 1,179,802 63.35 ========= ========== ========= ====== OTHER ASSETS 11,618 47,473 5,444 308.62 --------- ---------- --------- ------ TOTAL ASSETS 8,084,421 12,307,077 1,411,362 52.23 ========= ========== ========= ====== LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term loan 810,078 52,374 6,006 (93.53) Accounts payable 170,945 440,445 50,510 157.65 Accrued liabilities 913,453 1,505,336 172,630 64.80 Taxes payable 199,293 223,343 25,613 12.07 Unearned revenues 154,328 356,151 40,843 130.78 Dividend payable -- 1,114,870 127,852 -- Current maturities of obligation under capital lease 766 819 94 6.83 --------- --------- ------- ------ TOTAL CURRENT LIABILITIES 2,248,864 3,693,337 423,548 64.23 ========= ========= ======= ====== LONG TERM LIABILITIES Long-term guaranteed notes payable (net) -- 1,332,893 152,855 -- Obligation under capital lease - net of current maturities 818 -- -- (100.00) --------- --------- ------- ---------- TOTAL LONG-TERM LIABILITIES 818 1,332,893 152,855 162,845.40 ========= ========= ======= ========== DEFERRED TAX LIABILITIES - NET 28,061 327,083 37,510 1,065.61 STOCKHOLDERS EQUITY Capital stock - Rp1,000,000 par value Authorized - 650,000 shares Issued and fully paid - 182,570 shares 182,570 182,570 20,937 -- Additional paid-in capital 1,504,854 1,504,854 172,575 -- Retained earnings 4,119,254 5,266,340 603,938 27.85 --------- ---------- --------- ----- TOTAL STOCKHOLDER EQUITY 5,806,678 6,953,764 797,450 19.75 --------- ---------- --------- ----- TOTAL LIABILITIES AND EQUITY 8,084,421 12,307,077 1,411,362 52.23 ========= ========== ========= =====
Page 15 of 17 TABLE-7 PT TELEKOMUNIKASI SELULAR (TELKOMSEL) STATEMENTS OF INCOME FOR THE FIRST QUARTER 2002 AND 2003 (In Millions of Rupiah and Thousands of U.S. Dollar)
GROWTH 2002 2003 % --------- ------------------------ -------- Rp Rp U.S.$ (%) OPERATING REVENUES Post-paid (KartuHALO) 689,980 794,326 91,092 15.12 Prepaid (SimPATI) 745,961 1,421,077 162,968 90.50 International roaming 102,633 102,148 11,714 (0.47) Interconnection revenues (out-payment)- net (14,017) 2,360 271 (116.84) --------- --------- ------- ------ TOTAL OPERATING REVENUES 1,524,557 2,319,911 266,045 52.17 ========= ========= ======= ===== OPERATING EXPENSES Personnel 59,950 68,421 7,846 14.13 Depreciation 196,159 344,784 39,539 75.77 Operation and maintenance 224,528 382,535 43,869 70.37 General and administrative 60,207 76,092 8,726 26.38 Marketing 23,894 22,625 2,595 (5.31) Other cost of services 104,779 114,007 13,074 8.81 --------- --------- ------- ----- TOTAL OPERATING EXPENSES 669,517 1,008,464 115,650 50.63 ========= ========= ======= ===== OPERATING INCOME 855,040 1,311,447 150,395 53.38 OTHER INCOME (CHARGES) Interest income/expenses 1,447 (23,678) (2,715) (1,736.35) Foreign exchange gain/loss 9,032 (5,137) (589) (156.88) Others -- net (25,033) (15,898) (1,823) (36.49) OTHER INCOME (CHARGES) - NET (14,554) (44,713) (5,128) 207.22 INCOME BEFORE TAX 840,486 1,266,734 145,268 50.71 TAX EXPENSE (253,324) (387,190) (44,403) 52.84 NET INCOME 587,162 879,544 100,865 49.80 EBITDA 1,051,199 1,656,231 189,935 57.56 EBITDA MARGIN 68.95% 71.39% 71.39% 3.54
Page 16 of 17 TABLE-8 PT TELEKOMUNIKASI SELULAR (TELKOMSEL) OPERATIONAL INDICATORS AS OF MARCH 31, 2002 & 2003
GROWTH UNIT 2002 2003 (%) -------------- --------- ---------- ------- 1 2 3 4 5 CUSTOMER BASE NET ADDITION Postpaid (KartuHALO) Subscriber 32,945 21,408 -35% Prepaid (SimPATI) Subscriber 447,811 568,288 27% --------- --------- ---- TOTAL SUBSCRIBER 480,756 589,696 23% ========= ========= ==== CUSTOMER BASE Postpaid Subscriber 898,156 944,413 5% Prepaid Subscriber 2,834,632 5,656,055 100% --------- --------- ---- TOTAL SUBSCRIBER 3,732,788 6,600,468 77% ========= ========= ==== ARPU/MONTH Postpaid Rp (thousand) 285 305 7% Prepaid Rp (thousand) 102 93 -9% BLENDED RP (THOUSAND) 149 125 -16% ARPU NON VOICE/SMS/MONTH Postpaid Rp (thousand) 18 27 50% Prepaid Rp (thousand) 16 21 31% BLENDED RP (THOUSAND) 16 22 38% NETWORK DATA BTS/TRX Base Transceiver Station (BTS) on air Unit 2,338 3,903 67% Transit Receive Exchange (TRX)RX on air Unit 18,841 32,301 71% CAPACITY Home Location Register (HLR) Subscriber 5,805 10,295 77% Visitor Location Register (VLR) Subscriber 3,506 7,740 121% QUALITY OF SERVICE Call success ratio % 89.21% 90.69% 1.48% Call completion ratio % 97.81% 98.74% 0.93% EMPLOYEE Total Employees Persons 2,477 2,629 6% Efficiency (subs per employee) Subscr/employee 1,507 2,510 67%
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