6-K 1 f1q08infomemoedgr.htm For immediate release:


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First Quarter 2008 Results


28 May 2008


PT Indosat Tbk


IDX : ISAT

NYSE : IIT

Reuters : ISAT.JK

Bloomberg : ISAT.IJ


Market Capitalization

(As of 31 March 2008)

Rp38.58 trillion


Issued shares

5,433,933,500


Share Price (IIT)

(As of 31 March 2008) US$38.31

Hi/Lo (3 mo) US$47.01 / US$32.72


Share Price (ISAT)

(As of 31 March 2008) Rp7,100

Hi/Lo (3 mo) Rp8,750 / Rp5,850


Major Shareholders

(As of 31 March 2008)

ICL entities                                     40.81%

Public                                             36.38%

Government of Indonesia              14.29%

Fidelity entities                                 8.52%


IDR  to  USD Conversion

1 USD = Rp9,217 (31 March 2008)


Corporate and Bond Ratings

Moodys: Stable Outlook

: Ba1/LC Currency Issuer Rating

: Ba1/LC Corp Family Rating

S&P

: Stable Outlook

: BB/LT Foreign Issuer Credit

: BB/LT Local Issuer Credit

Fitch

: Stable Outlook

: BB-/Foreign Currency LT Debt

: BB-/Local Currency LT Debt

Pefindo: idAA+/Long Term



Investor Relations Division                               

PT Indosat Tbk - Indonesia

Ph: +62 21 3869614/300030001

Fax : +62 21 3804045








Financial Summary For Period Ended 31 March 2008

In Rp Billion

1Q -2007

1Q -2008

(%) Change

Operating Revenues

3,774.8

4,269.2

13.1%

Operating Expenses

2,733.0

3,222.1

17.9%

Operating Income

1,041.8

1,047.1

0.5%

Other Income (Expenses)

(329.4)

(165.5)

(49.8%)

Net Income

483.9

613.9

26.9%

EBITDA

2,018.7

2,205.7

9.3%

EPS (in Rp)

89.1

113.0

26.8%


Balance Sheet as of  31 March 2008


 

1Q -2007

1Q -2008

(%) Change

Total Assets

35,027.4

46,459.0

32.6%

Total Liabilities

19,341.0

29,298.2

51.5%

Total Stockholders Equity

15,686.4

17,160.8

9.4%


Financial Ratios For Period Ended 31 March 2008


 

Formula

1Q-2007

1Q-2008

EBITDA Margin

EBITDA / Operating Revenues

53.5%

  51.7%

Interest Coverage

EBITDA/Interest Expense

686.9%

530.2%

Gross Debt to Equity

Gross Debt /Total Equity

73.1%

101.9%

Net Debt to Equity

Net Debt / Total Equity

54.3%

  57.1%



Highlights of the 1Q-2008


·

Indosat continues growing its revenue, EBITDA and net income year on year and realizes the intensifying competition and price war in 1Q 2008.


·

Cellular revenues grew by 11.0% driven by increasing subscriber base reaching 26.4 million.


·

Fixed data (MIDI) services grew by 30.8% driven mainly by an increase revenues in Internet, IPVPN and Word Link/Direct Link services.


·

Fixed voice (Fixed Telecommunication) services revenues grew by 6.1% driven mainly by increase of IDD traffic and increase of fixed wireless services (Starone) subscriber reaching of 716 thousand.












FIRST QUARTER 2008

OPERATING AND FINANCIAL RESULTS


Jakarta, 28 May 2008.  PT Indosat Tbk (“Indosat” or “the Company”) released its consolidated First Quarter 2008 with limited audited by independent auditor (Purwantono, Sarwoko & Sandjaja, a member of Ernst & Young Global). The financial statements were prepared in accordance with the Indonesian Generally Accepted Accounting Principles.


The Company recorded operating revenues and operating income for the period ended 31 March 2008 amounting to Rp4,269.2 billion and Rp1,047.1 billion or grew 13% and 1% respectively. Net income was recorded Rp613.9 billion or grew 27%.


Operating revenues

 






Operating Revenues was Rp4,269 billion, an increase of Rp495 billion or grew 13.1% compared to 1Q-2007. The cellular services, fixed data services and fixed voice services contributed 75%, 15% and 10% respectively.

Cellular. The cellular operating revenues was Rp3,218.3 billion, an increase of 11.0% from Rp2,899.0 billion in the 1Q-2007 driven by an increase in subscriber base. As of 31 March 2008, Indosat reached 26.4 million subscribers or a total net add of 8.4 million subscribers from end 1Q-2007 or 1.9 million from end of 2007. ARPU cellular was Rp42,784 or decline 23% due to penetrating lower market and decrease in tariff as the impact of lower interconnection charges and tighter competition.


Fixed Data (MIDI). Operating revenues from fixed data services grew 30.8%, from Rp493.5 billion in 1Q-2007 to Rp645.3 billion in 1Q-2008 primarily due to increase revenues in Internet, IPVPN and Word Link/Direct Link services.


Fixed Voice (Fixed Telecommunication). Operating revenues from fixed voice services increased from Rp382.3 billion to Rp405.6 billion or grew by 6.1% on a year-on-year basis mainly due to increase of international call (IDD) revenue and increase of fixed wireless services revenue. The increase in IDD revenue was driven by increase of IDD traffic mainly the incoming traffic. Fixed wireless services contribution increased due to increase customer based after frequency migration.



Operating expenses

 







Operating expenses increased by Rp489 billion, or 17.9%, from Rp2,733.0 billion in the 1Q-2007 to Rp3,222.2 billion in the 1Q-2008 mostly due to increase in cost of services and depreciation expenses related to company expansion program, and also increase in marketing expense as the competition becoming intensifying.

Cost of Services expenses. It increased by Rp219.6 billion, or 20.2%, from Rp1,087.1 billion in 1Q-2007 to Rp1,306.7 billion in 1Q-2008. The increase was due to increase in government levies, utilities sites and rental site due to network expansion. Government levies consist of frequency fee including annual 3G license payment, USO and concession fee.


Depreciation and Amortization expenses. It increased by Rp181.7 billion or 18.6% from Rp.977.0 billion in the 1Q-2007 to Rp1,158.6 billion in  1Q-2008. The increase was due to the increase in capital expenditures.


Personnel expenses. It increased by Rp28.2 billion, or 7.9%, from Rp355.8 billion in 1Q-2007 to Rp384.0 billion in 1Q-2008. Personnel expenses grew primarily due to increase in salary, incentives and allowance.


Administration & General expenses. It increased by Rp6.6 billion or 3.9%, from Rp171.7 billion in 1Q-2007 to Rp178.3 billion in 1Q-2008. The increase was due to increase in rental and utilities expenses for offices.


Marketing expenses. It increased by Rp53.0 billion or 37.5%, from Rp141.4 billion in 1Q-2007 to Rp194.4 billion in 1Q-2008. The increase was due to aggressive marketing campaigns & promotion as well as customer loyalty programs in responding to tighter competition. As the percentage of revenue, Indosat still maintain its marketing expense below 5%.

 



Other income/ (expenses)

 





Other expenses decreased from Rp329.4 billion in 1Q-2007 to Rp165.5 billion in 1Q-2008 due mainly to gain on foreign exchange and increase in interest income despite increase in financing cost.

Financing cost. It increased by Rp120.8 or 39.8% from Rp303.5 billion in 1Q-2007 to Rp424.2 billion in 1Q-2008, due to new bond and loan issuances in 2007 and 2008. These new debts are to finance capital expenditure.


Gain (Loss) on Foreign Exchange-Net and Gain (Loss) on change in fair value of derivative-net.


Indosat recorded a gain in net-foreign exchange of Rp118.9 billion in 1Q-2008 compared to a loss of Rp48.5 billion in 1Q-2007 due to strengthening of the Rupiah against the US Dollar during first quarter of this year compared to weakening of Rupiah against US Dollar during the same period of last year. Indosat recorded a gain on change in fair value of derivative-net of Rp79.0 billion in 1Q-2008 which higher compared to gain on change in fair value of derivative-net Rp68.6 billion in 1Q-2007, due to decreased on interest swap rate.


Interest income. It increased by Rp72.6 billion or 206.1% from Rp.35.2 billion in 1Q-2007 to Rp.107.8 billion in 1Q-2008 due to the higher average cash balance.


Status of debt


Indosat debt composition in 1Q-2008 was Rp11,857.0 billion in bonds and Rp5,634.9 billion in loans.  Debt currency composition was 67.2% in Rupiah and 32.8% in USD.

As of 31 March 2008, Indosat had outstanding debt of Rp17,491.9 billion. The portion of Rupiah debt increased due to issuances of Rupiah Bond V and Sukuk Ijarah II in May 2007 and additional loans in 2007 and 2008. The portion of US Dollar debt also increased as Indosat received loan for Palapa D satellite financing from HSBC France Coface in 1Q-2008. Indosat has hedging facility amounting to USD400.0 million or representing 63.13% of company’s USD denominated borrowings while the cash position as of 31 March 2008 was Rp7,695.8 billion. Therefore the net debt was Rp9,796.1 billion.


Capital expenditures


In 1Q-2008 Indosat committed of Rp2,047.4 billion capital expenditure plan as part of its 2008 capex plan of USD 1.2 billion

The capital expenditure as of 1Q-2008 was: (i)Rp1,530.2 billion for cellular network, (ii) Rp496.8 billion for fixed telecom, fixed data, backbone and subsidiary company capital expenditures, (iii)Rp16.9 billion for network and IT  and (iv) Rp3.5 billion for Regionals activities and Properties


Network Development


   





In First Quarter of 2008, Indosat added 907 new BTSs so that the total BTSs as of 31 March 2008 were 11,667.

In the first three months of 2008, we have installed 907 new BTSs, and as a result company’s BTSs as of March 31, 2008 were 11,667. Indosat cellular coverage has covered all 33 provinces, 425 Regencies or 97% of total regencies in Indonesia and 3,270 districts or 61% of total districts in Indonesia. As of March 31, 2007, we operate 7,666 BTS, 180 base station controllers and 50 mobile switching centers.






As of 31 March

  FY 2007

1Q 2008

Additional

Base Stations

10,760

11,667

907

Base station controllers

238

247

9

Mobile switching centers

56

61

5

 






Cellular Services


Mentari (prepaid cellular)

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In January 2008, Indosat continued Mentari Freetalk Rp.5,000 program which offers customers who spend Rp5,000 to have Rp.5,000 free of voice call for the same day to all Indosat customers. We communicated this program through Mentari Rp 0,-  program which offers customers tariff of Rp0, until it reach the value of Rp.5.000. The program valid until April 30, 2008.

In February 2008, Indosat launched Mentari Free 1st minute program for Mentari customers which offers free of charge in the first minute up to 20 calls per day for customers who reload at least  Rp 10.000 for making local call to Mentari, IM3, and Matrix from 5.00 AM to 5.00PM. The Free 1st Minute will be given based on reload denomination. For reload amounted Rp10k and Rp20k will have free 1st minute for 7 days while reload more than Rp25k will get it for 15 days

Indosat extended Mentari Hebat 50 program which offers competitive local tariff for only Rp.50/30sec from Friday to Sunday for Mentari customers to other 4 Indosat registered customers.

Indosat continued its bonus SMS for every reload for all denomination.


IM3 (prepaid cellular)

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In January 2008, Indosat launched new program namely IM3 Ce-eSan for IM3 customers, which is offers free SMS to their two friends which the GSM numbers has been registered to be their Ce-eSan. The IM3 customers can feel the benefit if their has doing voice call with accumulated Rp2000,-/day

In February 2008, Indosat launched IM3 per second tariff or IM3 Rp0.0000000000…1/sec which offers IM3 customers Rp15/second for on net call in the first 90 seconds and Rp0.0000000000…1/sec for the remaining of the call and Rp25/second for off net call in the first 90 second and Rp0.0000000000…1/second for the next 90 seconds and repeated cycle. The program valid until 30 June 2008.

Indosat offers SMS Rp88 to all operators in Bali and Nusa Tenggara area, Sulawesi, Maluku, Papua and also Medan/Nanggroe Aceh Darussalam. This program will be valid until 30 April 2008.

Indosat continued its bonus SMS for every reload for all denomination.

 


[f1q08infomemoedgr008.gif]Matrix (postpaid cellular)


In February 2008, Indosat launched the supplementary package to add Matrix with unlimited GPRS for email and browsing using the blackberry handheld. The package is available for Matrix user and also newly potential Matrix BlackBerry user that may activate the service through Gallery or Indosat Account Executive.

In March 2008, Indosat offers unlimited GPRS access enabling existing Matrix BlackBerry users for retention purposes and loyalty rewards. Indosat also release newly Blackberry handset type of 8820, 8310 and 8320.


Fixed Data (MIDI) Services


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In March 2008, Indosat decreased its Indosat World Link Tariff up to 15% on average basis to stay competitive.  

In February 2008, PT Indosat Mega Media (IndosatM2) introduced newly IM2 Prepaid Wireless Broadband which enables the users to access internet through HSDPA (High Speed Downlink Packet Access) with prepaid method of payment. The user must buy the USIM inserted starter pack, and reload voucher with amount of Rp150.000,- , further activation can be made online through IM2 websites.




Fixed Voice Services


International call services


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Indosat recorded total international call traffic of Indosat of 454 million minutes, an increase of 33% compared to the same period last year. Outgoing international grew by 76% mostly driven by successful FlatCall 01016 programs and incoming international call grew by 25% by successful volume commitment program.

Fixed Wireless Access Services (Star One)

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Indosat continued  Starone program namely NGORBIT, which offers the cheap calls to others Starone customers Rp 25 per minutes or Rp 750 per hours, and tariff package only Rp 25.000 per month for unlimited calls to all Starone customers. The program valid until March 31, 2008.


RECENT DEVELOPMENTS



Mentari Sakti





IM3 Rp240 & Rp88 for unlimited call





Indosat Bond VI and Sukuk Ijarah III





Extended IM3 10-4-10





Indosat deploy Submarine Cable



Mentari Hebat All day




Plan for Syndicated Loan of US$200 million


Special tariff Flatcall 01016





Indosat offers HSPA  technology





StarOne Multi Package





Indosat Duo



Matrix Single Tariff

In April 2008, Indosat launched Mentari Sakti which offers Rp5/sec on Off Peak hours (23:00 – 17:00) and Rp20/sec on Peak hours (17:00 – 23:00) to call all operators nationwide.

In May 2008, Indosat extended its IM3 per second billing promotion into Rp8/sec for 30 seconds followed by Rp0.0000000000...1/sec for the remaining call for Java (Rp240/call) and Rp4/sec for 22 seconds followed by Rp0.0000000000...1/sec for the remaining call for outside Java (Rp88/call).

In April 9, 2008, Indosat issued Indosat Bond VI and Sukuk Ijarah III. Indosat Series A bonds in amount of Rp760.0 billion which bear interest at the fixed rate of 10.25% per annum will mature on April 9, 2013. Indosat Series B bonds in amount of Rp320.0 billion which bear interest at the fixed rate of 10.8% per annum will mature on April 9, 2015. Indosat Sukuk Ijarah III in amount of Rp570.0 billion and pays Rp14.6 billion on a qurterly basis.

In April 2008, Indosat extended its Raja SMS 10-4-10 program for IM3 customer with additional benefit of which is SMS bonus can be used to other operator.

In May 2008, Indosat started to deploy a submarine cable system, called “JAKABARE” (Java – Kalimantan – Batam – Singapore) project, connecting Indonesia and Singapore to fulfill broadband requirement in anticipating the growth of data and internet services in Indonesia.

In May 2008, Indosat launched Mentari Hebat 100 which modified previous Mentari 50 program which offers customers a local call of Rp100/30sec flat to 4 registered members all day and all week long.

Indosat has appointed DBS Bank and ING Bank as the arranger for Syndicated Loan of US$200 million with Green Shoe Option up to US$100 million.

In April 2008, Indosat launched FlatCall 01016 Special Tariff for Matrix, Mentari, IM3 and StarOne customers to have special tariff for international call by using 01016 to 15 countries. The tariff scheme is depend on which brand is being used, and the destination country.

In May, 2008, Indosat launched HSPA (High Speed Packet Access) technology to become the first operator to offer such advanced technology with the fastest Wireless Broadband in Indonesia with DownLink speed up to 14.4 Mbps and Uplink speed up to 1.4Mbps.

In April 2008, Indosat launched Starone Multi Package which offers several packages of voice & sms tariff as expansion of Ngorbit Rp.25.000/month with tagline “Pilih Semuanya, Irit Semuanya” (Choose All, All Cheap). Starone subscriber can choose the packages of Rp25/minute, Rp500/hour, Rp1500/day, Rp7500/week, Rp25,000/month and SMS Rp1,500/week.

CDMA & GSM service synergy by offering discount tariff for call forward from starone Jagoan to registered GSM Indosat number and 10% bonus on Reload GSM Indosat will be transferred to registered Starone number.

In April 2008, Indosat launched Matrix single tariff of Rp15/sec to all operators nationwide with free monthly fee and with minimum usage of Rp25,000.




Disclaimer Statement


This document is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of an offering circular that may be obtained from the Company and will contain detailed information about the Company and management, as well as financial statements. The Company does not intend to register any part of the offering in the United States.


This document contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of Indosat, that are not statements of historical fact which would be treated as forward looking statements within the meaning of applicable law.


Forward looking statements are subject to risks and uncertainties that may cause actual events and Indosat's future results to be materially different than expected or indicated by such statements. No assurance can be given that the results anticipated by Indosat, or indicated by any such forward looking statements, will be achieved.


























































Attachment 1

PT INDOSAT Tbk AND SUBSIDIARIES

STATUS OF DEBT

FOR THE THREE MONTHS ENDED MARCH 31, 2008

     

Facility

Amount

Maturity

Interest Rate

INDOSAT

IDR Bond

Bonds II (Rp billion)

200

2032

Series B Fixed 16% p.a.

Bonds III (Rp billion)

2,500

2008 and 2010

Series A Fixed 12.5% p.a. and Series B Fixed 12.875% p.a.

Bonds IV (Rp billion)

815

2011

Fixed 12% p.a.

Bonds V (Rp billion)

2,600

2014 and 2017

Series A Fixed 10.2% p.a. and Series B Fixed 10.65% p.a.

USD Bond

Guaranteed Notes I (US$ Million)

300

2010

Fixed 7.75% p.a.

Guaranteed Notes II (US$ Million)

250

2012

Fixed 7.125% p.a.

Sharia Bond

Syariah Ijarah I (Rp billion)

285

2011

Fixed Ijarah Return amounting to Rp8.55 payable on  a quarterly basis

Sukuk Ijarah II (Rp billion)

400

2014

Fixed Ijarah Return amounting to Rp10.2 payable on  a quarterly basis

IDR Loan

Mandiri Loan (Rp billion)

2,000

2012

Fixed rate of 9.75% p.a. and 10.5% p.a. for the first 2 years, floating rate 3-month JIBOR + 1.5% p.a. for the following years

BCA Loan (Rp billion)

2,000

2012

Fixed rate of 9.75% p.a. and 10.5% p.a. for the first 2 years, floating rate 3-month JIBOR + 1.5% p.a. for the following years

DBS Loan (Rp billion)

500

2013

Fixed rate of 9.7% p.a. and 10.4% p.a. for the first 2 years, floating rate SBI 3M + 1.5% p.a. p.a. for the following years

Goldman Sachs International (“GSI”) (Rp billion)

434.3

2013

Fixed annual rate 8.75% p.a. times Rp434.3 billion.

Fixed annual rate 6.45% p.a. times US$50 million if GSI exercise its option on the beginning of 5th year.

USD Loan

Finnish Export Credit Facility (US$ Million)

26.6

2011

Fixed 4.15% p.a.

HSBC France - Coface

57.0

2019

Fixed 5.69% p.a.

LINTASARTA

IDR Bond

Limited Bonds (Rp billion)

56.4*

2009

Floating maximum 19% p.a. and minimum 11% p.a.

IDR Loan

Facility 4 from Niaga        (Rp billion)

18.0

2009

Annual rate of 3-month Certificates of Bank Indonesia plus 3% p.a.

Facility 5 from Niaga        (Rp billion)

19.4

2011

Annual rate of 1-month Certificate of Bank Indonesia plus 2.25% p.a.

*After elimination of limited bonds issued to the Company

     









Attachment 2

PT INDOSAT Tbk AND SUBSIDIARIES

KEY OPERATIONAL DATA

FOR THE THREE MONTHS ENDED MARCH 31, 2007 & 2008

Description

Unit

YTD

YTD

Growth

  

Ended

Ended

 
  

31 Mar 2007

31 Mar 2008

 
  

1

2

3=(2-1)/1

CELLULAR

    

Prepaid

subs

1,293,334

1,805,197

39.6%

Postpaid

subs

22,843

87,347

282.4%

Total Net Additions

subs

1,316,177

1,892,544

43.8%

     

Prepaid

subs

17,172,114

25,750,628

50.0%

Postpaid

subs

848,702

687,338

-19.0%

Total Cellular Subscribers

subs

18,020,816

26,437,966

46.7%

     

ARPU Prepaid

Rp

48,501

37,580

-22.5%

ARPU Postpaid

Rp

194,006

240,417

23.9%

ARPU Blended

Rp

55,507

42,784

-22.9%

BTS (2G & 3G)

Unit

7,666

11,667

52.2%

MOU Blended

Minutes

64.8

77.8

20.1%

     

MIDI

    

Indosat : (Accumulated Numbers)

    

   Wholesale

    

   International High Speed Leased Circuit

cct/64k

15,368

40,626

164.4%

   Domestic High Speed Leased Circuit

cct/64k

50,279

105,838

110.5%

   Satellite Transponder Leased  (external usage)

# transp

13.7

13.7

0.2%

   Datacom

    

   International High Speed Leased Circuit

cct/64k

973

808

-17.0%

   Domestic High Speed Leased Circuit

cct/64k

8,200

10,729

30.8%

   Frame Relay  

port

883

752

-14.8%

   IPVPN

cct/64k

3,496

9,782

179.8%

 

    

Lintasarta : (Accumulated Numbers)

    

   High Speed Leased Line   (SDL)

 link

1,094

929

-15.1%

   Frame Relay  

 access

4,516

4,545

0.6%

   VSAT

 terminal

1,672

2,071

23.9%

   IPVPN

 link

3,245

 4,715

45.3%

     

IM2

    

   Internet Dial Up

user

26,029

19,173

-26.3%

   Internet Dedicated

link

1,183

1,348

13.9%

   IPVPN

link

274

454

65.7%

     

IDD

 

   

  

Outgoing Traffic  

min

54,435,342

95,920,768

76.2%

Incoming Traffic  

 min

287,207,948

359,900,452

25.3%

Total Traffic  

 min

341,643,290

455,821,220

33.4%

I/C Ratio

-

5.3

3.8

-28.9%

     

Fixed Wireless

    

Prepaid

subs

410,166

677,163

65.1%

Postpaid

subs

24,051

39,050

62.4%

Total Subscribers

subs

434,217

716,213

64.9%

     

ARPU Prepaid

Rp

26,449

25,294

-4.4%

ARPU Postpaid

Rp

191,286

123,786

-35.3%

ARPU Blended

Rp

35,354

30,588

-13.5%

     

EMPLOYEES

    

   Indosat and its subsidiaries

person

               7,786

                  7,592

-2.5%

   (including non permanent employees)

    
     














































































Attachment 3

PT INDOSAT Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2007 & 2008

(Expressed in Billions of Indonesian Rupiah and Millions of U.S.Dollars, except Share Data)

 
 
     

Three Months

  
     

Ended March 31

  
 

DESCRIPTION

2007

2008

Growth (2)

    

Rp

Rp

US $ (1)

 
         
              
 

OPERATING REVENUES

  

Cellular

 

2,899.0

 

3,218.3

349.2

  

11.0%

  
  

Multimedia, Data Communication, Internet ("MIDI")

 

493.5

 

645.3

70.0

  

30.8%

  
  

Fixed Telecommunication

 

382.3

 

405.6

44.0

  

6.1%

  
 

TOTAL OPERATING REVENUES

 

3,774.8

 

4,269.2

463.2

  

13.1%

  
  
 

OPERATING EXPENSES

  

Cost of services

 

1,087.1

 

1,306.7

141.8

  

20.2%

  
  

Depreciation & amortization

 

977.0

 

1,158.6

125.7

  

18.6%

  
  

Personnel  

 

355.8

 

384.0

41.7

  

7.9%

  
  

Marketing

 

141.4

 

194.4

21.1

  

37.5%

  
  

Administration and general

 

171.7

 

178.3

19.3

  

3.9%

  
 

TOTAL OPERATING EXPENSES

2,733.0

 

3,222.1

349.6

  

17.9%

  
  
 

OPERATING INCOME

 

1,041.8

 

1,047.1

113.6

  

0.5%

  
  
 

OTHER INCOME (EXPENSES)

  

Gain (loss) on foreign exchange - net

 

(48.6)

 

118.9

12.9

  

344.9%

  
  

Interest income

 

35.2

 

107.8

11.7

  

206.1%

  
  

Gain on change in fair value of derivatives - net

 

68.6

 

79.0

8.6

  

15.1%

  
  

Financing cost

 

(303.5)

 

(424.2)

 (46.0)

  

39.8%

  
  

Amortization of goodwill

 

(56.6)

 

(56.6)

 (6.1)

  

0.0%

  
  

Others - net

 

(24.6)

 

9.7

1.0

  

139.3%

  
 

TOTAL OTHER INCOME(EXPENSES) - Net

 

(329.4)

 

(165.5)

(18.0)

  

-49.8%

  
  
 

INCOME BEFORE INCOME TAX

 

712.4

 

881.6

95.6

  

23.8%

  
  
 

INCOME TAX EXPENSE

  

Current

 

207.9

 

298.9

32.4

  

43.7%

  
  

Deferred

 

12.0

 

(39.7)

 (4.3)

  

-430.1%

  
 

TOTAL INCOME TAX EXPENSE

 

220.0

 

259.2

28.1

  

17.8%

  
  
 

INCOME BEFORE MINORITY INTEREST IN NET INCOME OF

 
 

OF SUBSIDIARIES

 

492.4

 

622.4

67.5

  

26.4%

  
   
 

MINORITY  INTEREST IN NET INCOME OF SUBSIDIARIES

 

(8.5)

 

(8.5)

 (0.9)

  

0.0%

  
   
 

NET INCOME

 

483.9

 

613.9

66.6

  

26.9%

  
    
 

BASIC EARNINGS PER SHARE

 

89.05

 

112.97

0.01

  

26.9%

  
   
 

DILUTED EARNINGS PER SHARE

 

88.63

 

112.97

0.01

  

27.5%

  
  
 

BASIC EARNINGS PER ADS (50 B shares per ADS)

 

4,452.43

 

5,648.50

0.61

  

26.9%

  
  
 

DILUTED EARNINGS PER ADS

 

4,431.67

 

5,648.50

0.61

  

27.5%

  
 

(1)

Translated into U.S. dollars using Rp9,217 to US$1 (in full amounts) as the prevailing exchange rate as of the balance sheet date

(2)

Percentage changes may vary due to rounding.

           
              

Attachment 4

PT INDOSAT Tbk AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS  

AS OF MARCH 31,  2007  AND  2008

(Expressed in Billions of Indonesian Rupiah and Millions of U.S. Dollars)

          
          
     

2007

 

2008

  
   

DESCRIPTION

Rp

 

Rp

US$ (1)

 
          
          
          
 

ASSETS

          
 

CURRENT ASSETS

  

Cash and cash equivalents

2,954.6

 

7,695.8

835.0

 
  

Short-term investments - net of allowance

0.0

 

1.3

0.1

 
  

Accounts receivable - net of allowance

   

                           -   

 
   

Trade

   

                           -   

 
   

  Related parties

195.6

 

237.6

25.8

 
   

  Third parties

992.3

 

1,062.2

115.2

 
   

Others

11.6

 

39.8

4.3

 
  

Inventories

102.3

 

220.3

23.9

 
  

Derivative assets

25.3

 

193.6

21.0

 
  

Advances

30.0

 

40.0

4.3

 
  

Prepaid taxes

1,014.2

 

662.1

71.8

 
  

Prepaid expenses

255.8

 

477.5

51.8

 
  

Other current assets

47.8

 

34.8

3.8

 
 

Total Current Assets

5,629.6

10,664.8

1,157.1

 
          
 

NON-CURRENT ASSETS

  

Due from related parties - net of allowance

24.0

 

47.6

5.2

 
  

Deferred tax assets - net

50.6

 

93.9

10.2

 
  

Investment in associated companies - net of allowance

0.3

 

0.3

0.0

 
  

Other long-term investments - net of allowance

8.5

 

2.7

0.3

 
  

Property and equipment - net

25,354.3

 

32,126.5

3,485.6

 
  

Goodwill and other intangible assets - net

2,592.0

 

2,276.2

247.0

 
  

Long-term receivables

104.7

 

76.4

8.3

 
  

Long-term prepaid pension - net of current portion

220.1

 

187.7

20.4

 
  

Long-term advances

679.1

 

417.4

45.3

 
  

Others

364.2

 

565.6

61.4

 
 

Total Non-current Assets

29,397.8

35,794.3

3,883.5

          
 

TOTAL ASSETS

35,027.4

46,459.0

5,040.6


(1)

Translated into U.S. dollars using Rp9,217 to US$1 (in full amounts) as the prevailing exchange rate as of the balance sheet date


















LIABILITIES AND STOCKHOKDERS' EQUITY

          
 

CURRENT LIABILITIES

     
  

Accounts payable - trade

     
   

Related parties

48.8

 

32.3

3.5

 
   

Third parties

290.5

 

468.4

50.8

 
  

Procurement payable

3,411.5

 

6,163.6

668.7

 
  

Taxes payable

225.5

 

282.1

30.6

 
  

Accrued expenses

975.4

 

1,282.5

139.1

 
  

Unearned income

581.9

 

743.9

80.7

 
  

Deposits from customers

106.6

 

30.4

3.3

 
  

Derivative liabilities

164.4

 

33.6

3.6

 
  

Current maturities of :

   

                           -   

 
   

Loans payable

116.6

 

548.0

59.5

 
   

Bonds payable

1,055.5

 

1,860.0

201.8

 
  

Other current liabilities

27.5

 

72.9

7.9

 
 

Total Current Liabilities

7,004.4

 

11,517.7

1,249.6

 
          
 

NON-CURRENT LIABILITIES

     
  

Due to related parties

18.0

 

20.4

2.2

 
  

Deferred tax liabilities - net

1,260.9

 

1,450.3

157.3

 
  

Loans payable - net of current maturities  

   

                           -   

 
   

Related parties

637.1

 

2,244.3

243.5

 
   

Third parties

868.7

 

2,842.5

308.4

 
  

Bonds payable - net of current maturities

8,792.4

 

9,997.0

1,084.6

 
  

Other non-current libilities

550.4

 

929.0

100.8

 
 

Total Non-Current Liabilities

12,127.4

 

17,483.5

1,896.9

 
          
 

MINORITY INTEREST

209.2

 

297.0

32.2

 
          
 

STOCKHOLDERS' EQUITY

     
  

Capital stock

543.4

 

543.4

59.0

 
  

Premium on capital stock

1,546.6

 

1,546.6

167.8

 
  

Difference in transactions of equity changes in

   

                           -   

 
   

associated companies / subsidiaries

403.8

 

403.8

43.8

 
  

Difference in foreign currency translation

1.0

 

8.4

0.9

 
  

Retained Earning

   

                           -   

 
   

Appropriated

66.2

 

80.3

8.7

 
   

Unappropriated

12,641.6

 

13,964.5

1,515.1

 
   

Net income for this period

483.9

 

613.9

66.6

 
  

Total Retained Earning

13,191.7

 

14,658.6

1,590.4

 
 

Total Stockholders' Equity

                   15,686.4

 

                17,160.8

                  1,861.9

 
          

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

35,027.4

 

46,459.0

5,040.6

 

(1 ) Translated into U.S. dollars using Rp9,217 to US$1 (in full amounts) as the prevailing exchange rate as of the balance sheet date


















Attachment 5

PT INDOSAT Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 Three Months Ended March 31, 2007 and 2008

(Expressed in Billions of Indonesian Rupiah and Millions of U.S.Dollars)

     

 Description

 2007

 2008

 
  

 Rp

 Rp

 US$

     

 CASH FLOWS FROM OPERATING ACTIVITIES

   

 Cash received from:

   
 

 Customers

3,842.1

3,992.1

433.1

 

 Interest income

35.0

104.4

11.3

     

 Cash paid for:

   
 

 Employees, suppliers and others

(1,517.1)

(2,438.0)

(264.5)

 

 Taxes

(157.0)

(476.3)

(51.7)

 

 Financing cost

(191.5)

(328.7)

(35.7)

 Net Cash Provided by Operating Activities

2,011.5

853.5

92.6

     

 CASH FLOWS FROM INVESTING ACTIVITIES

   

Acquisition of property and equipment

(1,847.3)

(1,713.8)

(185.9)

Acquisition of intangible asset

                 -   

               (4.8)

           (0.52)

Proceeds from sale of property and equipment

0.1

                 -   

               -   

 Net Cash Used in Investing Activities

(1,847.2)

(1,718.6)

(186.5)

     

 CASH FLOWS FROM FINANCING ACTIVITIES

   

Proceeds from long-term loans

                 -   

510.0

55.3

Decrease (increase) in restricted cash and cash equivalents

(1.1)

2.4

0.3

Repayment of long-term loans

(15.8)

(4.5)

(0.5)

 Net Cash Provided by (Used in) Financing Activities

(16.9)

507.9

55.1

     

 NET INCREASE IN CASH AND CASH EQUIVALENTS

147.4

(357.2)

(38.8)

     

 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

2,807.3

8,053.0

873.7

     

Stock options

(90.8)

                 -   

               -   

     




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