Indosat Full Year 2014 Investor Memo 30 March 2015

Transcription

1 Tickers IDX : ISAT Market Capitalization (As of 31 December 2014) IDR22.00 trillion Issued Shares 5,433,933,500 Share Price (IDX: ISAT) (As of 31 December 2014) IDR4,050 Hi/Lo (twelve months) IDR3,100/IDR4,295 Shareholder Structure (As of 31 December 2014) Ooredoo Asia 65.00% (formerly known as Qtel Asia) Republic of Indonesia 14.29% Skagen AS 5.39% Free Float 15.32% IDR to USD Conversion 1 USD = IDR12,440 (31 December 2014) Corporate and Bond Ratings (31 December 2014) Moody s : Stable Outlook : Ba1 S&P : Stable Outlook : BB+ Fitch : Stable Outlook : BBB AAA (idn) Pefindo : Stable Outlook idaaa/local Currency Debt idaaa (sy)/local Sukuk Ijarah Investor Relations & Corporate Secretary PT Indosat Tbk - Indonesia Ph: / Fax: investor@indosat.com Please refer to the important disclaimer at the back of this document Indosat Full Year 2014 Investor Memo 30 March 2015 Revenue growth continued quarterly, supported by cellular data and fixed data performances Results Highlights Consolidated revenues increased by 1.0% in year ended 31 December 2014 compared to the previous year. This growth was driven primarily by Cellular revenues, which increased by 0.5%. Cellular revenue growth was contributed mainly by Data revenue growth. Fixed Data continued to grow by a healthy 7.4% compared to the previous year mainly driven by new customers of Transponders, IPVPN, MPLS, increases in capacity usage of internet services (INP), and IT services projects. Fixed Voice (Fixed Telecom) revenues decreased by 9.8% resulting primarily from decreasing IDD outgoing revenue. Cash-out for CAPEX investments of IDR6,443.4 billion in the year focused on network modernization, and capacity expansion and coverage to support future demands for data services, as well as internal business support system enhancements. Consolidated Financial Summary for the Years ended 31 December 2014 and 2013 (in IDR billion) FY 2014 FY 2013 Change (%) Operating Revenues 24, , Cellular 19, , Fixed Data 3, , Fixed Telecom 1, ,214.8 (9.8) Operating Profit ,509.2 (55.4) Loss for the Year Attributable to (1,987.2) (2,782.0) (28.6) Owners of the Company EBITDA* 10, ,376.0 (3.1) Consolidated Statement of Financial Position as of 31 December 2014 and 31 December 2013 (in IDR billion) FY 2014 FY 2013 Change (%) Total Assets 53, ,520.9 (2.3) Total Liabilities 39, , Total Equity** 14, ,517.6 (14.1) Total Debt 23, ,931.1 (3.3) Obligation Under Finance Lease 4, , Financial Ratios as of 31 December 2014 and 2013 Formula FY 2014 FY 2013 EBITDA Margin EBITDA/Operating Revenue Interest Coverage*** EBITDA/Interest Expense Gross Debt to Equity Gross Debt /Total Equity Debt to EBITDA Gross Debt / Total EBITDA * EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-gaap measure that management believes is a useful a supplemental measure of cash available prior to debt service, capital expenditures and income tax. Investors are cautioned that EBITDA should not be construed as an alternative to net income determined in accordance with GAAP as an indicator of the Company s performance or to cash flows from operations as a measure of liquidity and cash flows. EBITDA does not have a standardized meaning prescribed by GAAP. The Company s method of calculating EBITDA may differ from the methods used by other companies and, accordingly, it may not be comparable to similarly titled measures used by other companies. ** Including non controlling interests. *** Calculated using EBITDA and interest expense for the years ended December 31, 2014 and

2 FULL YEAR 2014 OPERATING AND FINANCIAL RESULTS PT Indosat Tbk ( Indosat or the Company ) has released its audited consolidated financial statements for the Year 2014 ( FY 2014 ). The consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards (IFAS). Consolidated Statement of Comprehensive Income Key Indicators YoY Quarterly (in IDR billion) FY 2014 FY 2013 Growth % 4Q Q 2014 Growth % Revenues 24, , , , Cellular 19, , , , Fixed Data 3, , Fixed Telecom 1, ,214.8 (9.8) (10.2) Expenses 23, , , , Operating Profit ,509.2 (55.4) (64.3) Other Expenses - Net (2,608.8) (4,843.0) (46.1) (823.5) (701.4) 17.4 Loss for the Year Attributable to Owners of The Company (1,987.2) (2,782.0) (28.6) (664.2) (210.6) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Revenues of IDR24,085.1 billion were recorded in FY 2014, an increase of IDR229.8 billion or 1.0% compared to FY Indosat s Cellular, Fixed Data, and Fixed Voice businesses contributed 81%, 14%, and 5% respectively to the consolidated operating revenues for the year ended 31 December Cellular revenues increased by 0.5% in FY 2014, mainly attributable to increases in Data and VAS revenue compensated by decreased in Voice, SMS, and Interconnection revenue. Revenue growth mostly contributed by modernized areas. Fixed Data (MIDI) revenues increased by 7.4% compared to FY 2013, driven by new customers of Transponders, IPVPN, MPLS, increase capacity from internet services and IT services project. Fixed Voice (Fixed Telecom) revenues decreased by 9.8% over the year 2013, owing to lower international direct dial (IDD) revenues, Indosat phone and transfer of customers from FWA services to Cellular services. Expenses of IDR23,412.2 billion were recorded for FY 2014, an increase of IDR1,066.1 billion or 4.8% over FY The increase was a result of increased cost of service, marketing expenses, and provision for IM2 legal case, partly offset by decreased depreciation & amortization, personnel expenses, general and administration expenses, and recognition of gain from sale of investment in share of PT Tower Bersama Infrastructure Tbk ( TBIG ) in 1Q Cost of services: increased by IDR452.4 billion or 4.5% over FY 2013 mainly as a result of increased in frequency fees, maintenance, rent and costs of handsets and modems, offset by decreased in interconnection expenses in line with lower revenues, decreased leased circuit due to cost optimization and decreased BlackBerry license fee. Depreciation and amortization: decreased by IDR732.3 billion or 8.2% over FY 2013, due to delay of network modernization deployment and less accelerated depreciation. Personnel expenses: decreased by IDR15.1 billion or 0.9% over FY 2013 mainly owing to lower headcount and lower postretirement healthcare. Marketing expenses: increased by IDR151.3 billion or 16.9% over FY 2013, primarily due to pushed Data campaign starting in 3Q General and Administration expenses: decreased by IDR42.0 billion or 4.7% over FY 2013 mainly owing to lower professional fees. Provision for legal case: increased by IDR1,358.6 billion or 100.0% over FY 2013, due to the recognition of provision for legal case in subsidiary (detailed explanations can be read at the Company s disclosure to OJK). Other Expense - net: decreased by IDR2,234.2 billion or 46.1% over FY 2013 driven primarily by decreased loss on foreign exchange - net and increase in interest income. Loss on Foreign Exchange - net: Indosat recorded a net foreign exchange loss in FY 2014 of IDR243.2 billion compared to a net loss of IDR3,011.4 billion in FY 2013 as a result of lower outstanding USD debt in 2014 compared to 2013 and lower IDR depreciation against USD in 2014 compared to Financing costs: increased by IDR194.4 billion or 8.8% over FY 2013 as a result increase in interest expense on higher interest rate of IDR loans and finance charge under finance lease. Interest income: increased by IDR35.6 billion or 33.2% over FY 2013 as a result of higher average cash balances. 2

3 Loss on change in fair value of Derivatives - net: increased by IDR375.2 billion over FY 2013 as the impact of lower IDR depreciation against USD during 2014 and higher derivative contract exchange rate. Loss for the Year Attributable to Owners of the Company: decreased by 28.6% over FY 2013 caused primarily by decreased in Net Foreign Exchange Loss (91.9%). Consolidated Statement of Financial Position Key Indicators (in IDR billion) FY 2014 FY 2013 Growth % Total Assets 53, ,520.9 (2.3) Total Liabilities 39, , Total Equity 14, ,517.6 (14.1) Total assets decreased by 2.3% to IDR53,254.8 billion. Total liabilities increased by 2.8% to IDR39,058.9 billion. Total equity decreased by 14.1% to IDR14,195.9 billion. Current assets increased by 19.8% to IDR8,591.7 billion, mainly resulting from an increase in cash and cash equivalent due to proceeds from bonds 2014 issuance. Non-current assets decreased by 5.7% to IDR44,663.1 billion, largely as a result of lower other long term investment due to the sale of investment in TBIG shares. Current liabilities increased by 56.7% to IDR21,147.9 billion as a result of higher current maturities of long term debt, mainly contributed by USD Guaranteed Notes-2020, and provision for legal case in subsidiary. Non-current liabilities decreased by 26.9% to IDR17,911.0 billion mainly as a result of lower long-term debt payable due to reclassification of sixth Indosat Bond which will be due in Cash Flow and Capital Expenditure Key Indicators (in IDR billion) FY 2014 FY 2013 Growth % Net Cash Provided by Operating Activities 7, ,392.1 (12.4) Net Cash Used in Investing Activities (5,003.6) (9,068.0) (44.8) Net Cash Used in Financing Activities (1,057.4) (748.8) 41.2 Net Foreign Exchange Differences from Cash and Cash Equivalents (41.3) (221.3) (81.3) Net Increase (Decrease) in Cash and Cash Equivalents 1,246.5 (1,646.0) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2, ,917.2 (43.0) Cash and Cash Equivalents of a Liquidated Subsidiary - (37.7) CASH AND CASH EQUIVALENTS AT END OF YEAR 3, , Net Cash Provided by Operating Activities decreased by 12.4% mainly due to higher payment to authorities & vendors, and higher payments for financing cost. Net Cash Used in Investing Activities decreased by 44.8% mainly contributed by recognition of proceeds from sale of investment in TBIG shares and lower payments for capital expenditures. Net Cash Used in Financing Activities increased by 41.2% mainly due to higher repayment of short-term debt. Net Foreign Exchange Differences from Cash and Cash Equivalents decreased by 81.3% due to appreciation of the IDR. Net change in Cash and Cash Equivalents increased by 175.7% mainly due to net proceed from sale of investment in TBIG shares and lower payment for capital expenditures. Cash-out CAPEX in FY 2014 amounted to IDR6,443.4 billion, a decrease of 30.9% over FY Of this amount, approximately 86.0% was allocated to cellular, mainly to support data services demand. The remaining balance was allocated to fixed voice, fixed data, infrastructure and IT Capex. STATUS OF DEBT As of 31 December 2014, Indosat s total debt decreased by 3.3% compared to 31 December Debt repayments during the year were for SEK Loan Tranche A, B & C installments of USD45.0 million, HSBC Coface and Sinosure installments of USD20.1 million, 9-Year Commercial Loan installment from HSBC of USD4.1 million, Indosat Bond V series A settlement of IDR1.23 trillion, Indosat Sukuk Ijarah II settlement of IDR400.0 billion, RCF Mandiri Facility of IDR1,5 trillion, RCF BCA Facility of IDR500.0 billion, BCA Investment credit facility of IDR100.0 billion, Indosat Bond VII Series A settlement of IDR700.0 billion and Indosat Sukuk Ijarah IV settlement of IDR28.0 billion. Debt issuance during the year were RCF IIF-SMI Facility drawdown of IDR450.0 billion, RCF BNI Facility drawdown of IDR600.0 billion, RCF Mizuho Facility drawdown of IDR250.0 billion, RCF BNPP Facility drawdown of IDR350.0 billion, RCF SMI Facility drawdown of IDR100.0 billion, loans from non-controlling interest 3

4 of APE of IDR15.75 billion and Shelf Registration Indosat Bond I Phase I issuance of IDR2.31 trillion and Shelf Registration Indosat Sukuk Ijarah I Phase I issuance of IDR billion. Total outstanding debt: As at 31 December 2014, the Company had total outstanding debts including obligation under financial lease of IDR27,198.5 billion. The Company has hedging facilities in place covering USD433.0 million or 50.27% of the Company s USD denominated bonds and loans. The Company s cash position as at 31 December 2014 stood at IDR3,480.0 billion and net debt at IDR23,718.5 billion. The composition of Indosat debt is as follows: Debt Proportion (Principal amount) FY 2014 FY 2013 Growth % IDR Loans (billion) 4, ,951.1 (6.8) USD Loans (million) (24.7) IDR Bonds (billion) 7, , USD Bonds (million) Total maturing debt: in the next twelve months, the Company has debts of IDR2,923.2 billion and USD719.2 million coming to maturity. The average tenor of debt is 2.6 years as at 31 December OPERATIONAL RESULTS Cellular Key Indicators YoY Quarterly FY 2014 FY 2013 Growth % 4Q Q 2014 Growth % Customers - Postpaid (million) Customers - Prepaid (million) Customers - Total (million) ARPU (Postpaid) (IDR thousand) (19.1) (0.0) ARPU (Prepaid) (IDR thousand) (1.8) ARPU (Blended) (IDR thousand) (1.2) (1.0) MoU (15.7) ARPM (3.6) The Company ended FY 2014 with a cellular customer base of 63.2 million, an increase of 6.1% or 3.6 million customers over FY Average Revenue Per User (ARPU) for cellular customers in 4Q 2014 ended December 31, 2014, stood at IDR28.0 thousand, a decrease of 1.0% over 3Q The ARPU in FY 2014 decreased versus the ARPU of the same period last year. Average Minutes of Usage (MOU) per customer decreased to 78.4 minutes (a decrease of 15.7% compared to FY 2013). Average Revenue Per Minute (ARPM) increased to IDR143.2 (representing an increase of 8.0% compared to FY 2013) amid a continued competitive environment. Fixed Data (MIDI) Key Indicators Unit FY 2014 FY 2013 Growth % Indosat International High Speed Leased Circuit Mbps 94,338 44, Domestic High Speed Leased Circuit Mbps 129, ,513 (1.6) Transponder Mhz 1,119 1, IPVPN Mbps 4,197 3, Internet Mbps 43,653 45,106 (3.2) Frame Relay Mbps 2 4 (50.0) Lintasarta High Speed Leased Line 64Kbps 3,948,164 3,378, Frame Relay 64Kbps 114, ,947 (14.4) VSAT 64Kbps 156, , IPVPN 64Kbps 1,423,541 1,059, IM2 Internet Dial Up User 3,614 3,937 (8.2) Internet Dedicated Link IPVPN Link (2.7) Fixed connectivity and the strong satellite transponder demand contributed significant growth in Fixed Data. Decline in Frame Relay and VSAT were due to migration to IPVPN and / or other terrestrial solution, respectively in cities. 4

5 MARKETING ACTIVITIES Cellular Pro Rakyat Launched on 23 October 2014, Paket Pro Rakyat is an add-on program for Indosat prepaid, offering compelling various packages with very affordable pricing. Starting from only IDR1,000, a subscriber is entitled for up to 90 minutes voices, 1000 SMS, and 10 MB of data, within a certain time band. Indosat Super Internet Revamp Launched on 30 September 2014, Indosat Super Internet is a special internet package offering a high speed internet access up to 42 Mbps with up to 18 GB quota. Starting from only IDR2,000, packages are available for daily, weekly and monthly subscription, and consists of quota package, unlimited package, and extra package. This program is supported by new Indosat network which is available in more than 23 cities in Indonesia. IM3 Play 24 Jam (New) Launched on 10 November 2014, IM3 Play 24 Jam (New) is the refreshment of the previous IM3 Play 24 Jam program, replacing bonus social media access from previous program with free 10 MB internet access and Super Wifi in the new program. This new program offers free 10 MB internet (after IDR1,000 usage), free 1000 minutes on-net call (after 1 minute paid on-net call) free 1000 SMS to all operator (after 1 paid SMS), and free access to Indosat Super Wifi. Happy Sunday Return Launched on 12 October 2014, Happy Sunday is a special reload program offering free voices and SMS for every reload in Sunday. Subscribers entitle for free 100 Minutes call and 100 SMS for a IDR10,000-20,000 reload exercised in time band, and for IDR25,000 reload and above exercised in time band. NETWORKS Cellular (GSM) Network. The Company operated 40,229 BTSs as of 31 December 2014, including 2G and 3G BTSs or added 15,949 BTSs compared to the previous year. Significant CAPEX investments focused on network modernization and data readiness, coverage, and capacity expansion to support ongoing growth. Key Indicators YoY FY 2014 FY 2013 Additional Base Transceiver Stations (BTS) 2G 22,166 18,871 3,295 3G 18,063 5,409 12,654 Base Station Controllers (BSC) Mobile Switching Centers (MSC) (10) Fixed Wireless (CDMA) Network. As of 31 December 2014 the Company had 1,550 BTSs, 37 BSCs and 8 MSCs in operation. About Indosat Indosat is the leading telecommunication and information operator in Indonesia that provides cellular services, fixed line, data communications and internet (MIDI). In the third quarter of 2014, the company has 54.2 million mobile subscribers through a variety of brands, among others; IM3, Mentari and Matrix. Indosat operates international direct dialing (IDD) through the access codes 001, 008 and Flatcall The company also offers corporate and SME solutions namely Indosat Business that supported by integrated telecommunications network throughout Indonesia as well as satellite services via satellite Palapa-C2 and Palapa-D. Indosat also has a very broad digital services program including a dedicated digital services unit ( Indonesia s first innovation competition IWIC (Indosat Wireless Innovation Contest) and Indonesia s leading startup incubator Ideabox ( Indosat is a subsidiary of the Ooredoo Group. Indosat's shares are listed on the Indonesia Stock Exchange (IDX: ISAT). 5

6 APPENDICES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Years Ended 31 December 2014 and 2013 (Expressed in Billions of Indonesian Rupiah and Millions of U.S. Dollar) Description Full Year Ended 31 December IDR USD (1) IDR Growth (2) (%) REVENUES Cellular 19, , , Multimedia, Data Communication, Internet (Fixed Data) 3, , Fixed Telecommunications 1, ,214.8 (9.8) TOTAL REVENUES 24, , , EXPENSES Cost of Services 10, , Depreciation and Amortization 8, ,958.4 (8.2) Personnel 1, ,727.6 (0.9) Provision for IM2 Legal Case 1, Marketing 1, General and Administration (4.7) Loss (Gain) on Foreign Exchange - net (224.5) (167.8) Gain on Sale of Available-for-Sale Investment (413.7) (33.3) Amortization of Deferred Gain on Sales and Leaseback of Towers (141.0) (11.3) (141.0) 0.0 Others - net (25.5) NET EXPENSES 23, , , OPERATING PROFIT ,509.2 (55.4) Interest Income Financing Cost (2,406.5) (193.5) (2,212.1) 8.8 Loss on Foreign Exchange - net (243.2) (19.5) (3,011.4) (91.9) Gain (Loss) on Change in Fair Value of Derivatives - net (101.9) (8.2) (137.3) OTHER EXPENSES - Net (2,608.8) (209.7) (4,843.0) (46.1) LOSS BEFORE INCOME TAX (1,935.9) (155.6) (3,333.8) (41.9) INCOME TAX BENEFIT - Net (88.3) LOSS FOR THE YEAR (1,858.0) (149.3) (2,666.4) (30.3) PROFIT (LOSS) FOR THE YEAR ATTRIBUTABLE TO : OWNERS OF THE COMPANY (1,987.2) (159.7) (2,782.0) (28.6) NON-CONTROLLING INTERESTS TOTAL (1,858.0) (149.3) (2,666.4) (30.3) 1) Translated into U.S. dollars using IDR12,440 to USD1 (in full amounts) as the prevailing exchange rate as of the balance sheet date 2) Percentage changes may vary due to rounding. 6

7 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of 31 December 2014 and 2013 (Expressed in Billions of Indonesian Rupiah and Millions of US Dollar) Description 31 December December 2013 Growth (2) IDR USD (1) IDR (%) ASSETS Current Assets 8, , Non-Current Assets 44, , ,351.9 (5.7) TOTAL ASSETS 53, , ,520.9 (2.3) LIABILITIES Current Liabilities 21, , , Non-Current Liabilities 17, , ,508.9 (26.9) TOTAL LIABILITIES 39, , , TOTAL EQUITY 14, , ,517.6 (14.1) TOTAL LIABILITIES & EQUITY 53, , ,520.9 (2.3) 1) Translated into U.S. dollars using IDR12,440 to USD1 (in full amounts) as the prevailing exchange rate as of the balance sheet date 2) Percentage changes may vary due to rounding. CONSOLIDATED STATEMENT OF CASH FLOWS Full Years Ended 31 December 2014 and 2013 (Expressed in Billions of Indonesian Rupiah and Millions of U.S. Dollar) Description IDR USD (1) IDR Net Cash Provided by Operating Activities 7, ,392.1 Net Cash Used in Investing Activities (5,003.6) (402.2) (9,068.0) Net Cash Used in Financing Activities (1,057.4) (85.0) (748.8) Net Foreign Exchange Differences from Cash and Cash Equivalents (41.3) (3.3) (221.3) Net Increase (Decrease) in Cash and Cash Equivalents 1, (1,646.0) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2, ,917.2 Cash and Cash Equivalents of a Liquidated Subsidiary - - (37.7) CASH AND CASH EQUIVALENTS AT END OF YEAR 3, , ) Translated into U.S. dollars using IDR12,440 to USD1 (in full amounts) as the prevailing exchange rate as of the balance sheet date STATUS OF DEBT Facility Amount Maturity Interest Indosat IDR Bond (IDR Billion) Bond V 1, Series B Fixed 10.65% p.a Bond VI Series B Fixed 10.8% p.a Bond VII Series B Fixed 11.75% p.a Bond VIII 2, & 2022 Series A Fixed 8.625% p.a and Series B Fixed 8.875% p.a Shelf Registration Indosat Bond I Phase I USD Bond (USD Million) 2,310 Guaranteed Notes Sharia Bond (IDR Billion) 2017, 2019, 2021 & (First Call Option in 2015) Sukuk Ijarah IV Sukuk Ijarah V Shelf Registration Indosat Sukuk Ijarah I Phase I , 2019 & 2021 Series A Fixed 10.0% p.a, Series B Fixed 10.3% p.a, Series C Fixed 10.5% p.a and Series D Fixed 10.7% p.a Fixed 7.375% p.a Fixed Ijarah Return amounting to IDR 5.05 for Series B payable on a quarterly basis Fixed Ijarah Return amounting to IDR 6.47 payable on a quarterly basis Fixed Ijarah Return amounting to IDR1.60, IDR0.412, and IDR2.89 for Series A, B and C payable on a quarterly basis 7

8 Facility Amount Maturity Interest IDR Loan (IDR Billion) RCF - BCA 1, Floating rate 1 month JIBOR % p.a. RCF - BSMI Floating rate 1 month JIBOR % p.a. RCF - IIF / SMI Floating rate 3 months JIBOR % p.a. RCF - BNI Floating rate 1 month JIBOR % p.a. RCF - BNPP Floating rate 1 month JIBOR % p.a. RCF - Mizuho Floating rate 1 month JIBOR % p.a. RCF - SMI Floating rate 3 months JIBOR % p.a. BCA - Investment Credit Fixed 10.25% p.a. Facility Loans from Fixed 10.50% p.a. non-controlling interest of APE*** Loans from non-controlling interest Fixed 2.00% p.a. of LMD*** USD Loan (USD Million) HSBC France - Coface Fixed 5.69% p.a HSBC France - Sinosure Floating Rate based on 6m US LIBOR % p.a* 9 Year Commercial Facility SEK Loan & Floating Rate based on 6m US LIBOR % p.a** Floating Rate based on 6m US LIBOR % p.a over USD21.43; Fixed rate 4.26% p.a over USD55.36; Fixed rate 4.24% p.a over USD25.71 *Swapped to Fixed Rate 4.82% p.a. **Swapped to Fixed Rate 5.42% p.a. ***APE (PT Artajasa Pembayaran Elektronis) and LMD (PT Lintas Media Danawa) are indirect subsidiaries of the Company through PT Aplikanusa Lintasarta ( Lintasarta ). DEBT MATURITIES WITHIN THE NEXT TWELVE MONTHS (FULL AMOUNTS) Maturity 1Q Q Q Q 2015 Facility Amount USD IDR SEK Loan Tranche B Inst. 11,071,429 HSBC France Coface Inst. 7,859,335 HSBC France - Sinosure Inst. 2,210,000 RCF BCA 1,000,000,000,000 9 Year Commercial Inst. 2,027,775 SEK Loan Tranche A Inst. 7,142,857 SEK Loan Tranche C Inst. 4,285,714 Bond VI Series B 320,000,000,000 RCF - BNI 600,000,000,000 SEK Loan Tranche B Inst. HSBC France Coface Inst. HSBC France - Sinosure Inst. Guaranteed Notes Year Commercial Inst. SEK Loan Tranche A Inst. SEK Loan Tranche C Inst. RCF - BSMI RCF - Mizuho BCA - Investment Credit Facility Loans from non-controlling interest of APE 11,071,429 7,859,335 2,210, ,000,000 2,027,775 7,142,857 4,285, ,000,000, ,000,000, ,000,000,000 3,150,000,000 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 a prospectus 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 offering in the United States. 8

9 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. The financial information provided herein is based on Indosat s consolidated financial statements in accordance with Indonesian Financial Accounting Standards. 9