Investor memo. Full Year March 2017

Transcription

1 Investor memo Tickers IDX : ISAT Market Capitalization IDR35.05 trillion Issued Shares 5,433,933,500 Share Price IDR6,450 Hi / Lo IDR7,075 / IDR4,800 Shareholder Structure Ooredoo Asia Pte. Ltd % Republic of Indonesia 14.29% Free Float 20.71% Full Year March 2017 Indosat booked positive bottom line as a result of operational improvement, stable currency movement and lower foreign currency denominated debt Strong top-line growth, driven by data : Good traction from Indosat Ooredoo successfully data centric promotion has been proven with strong consolidated revenue growth (9.0% YoY), delivering total revenues of IDR29.2 trillion. Cellular revenue solid growth of 10.0% YoY was mainly driven by data revenue, which also grew very strong with 46.7% growth YoY. Revenues from data, voice, SMS and VAS contributed 43%, 32%, 21% and 5% respectively to cellular revenue. Operational improving : EBITDA also improved with 12.1% growth YoY to IDR12.9 trillion (FY 2015: IDR11.5 trillion), with EBITDA margin of 44.1%. Having cost control improvement strictly maintained in all aspect, the Company expects to see that the trend should be sustainable. IDR to USD Conversion 1 USD = IDR13,436 Corporate and Bond Ratings Moody s : Positive Outlook : Ba1 S&P : Positive 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@indosatooredoo.com Lower foreign currency exposure, positive bottom line : The Company has managed to reduce USD Debt by 58.3% from USD432.1 million (representing 25% of total debt) in 2015 to become USD180.0 million (representing 12% of total debt) as Indosat Ooredoo continues its plan to reduce the impact of the foreign currency rate fluctuation to its profitability in net profit level, and this also contribute some stability on interest expenses. The impact from this plan has started to be seen where the Company delivered IDR1.1 trillion net profit as of FY Total outstanding debt from bank loan and bond has also dropped IDR 3.5 trillion or 14.8% decline Year-on-Year. USD Debt (in billion IDR) Net Profit (in billion IDR) Please refer to the important disclaimer at the back of this document Expanded network roll out, growing data user : The Company continued its effort to expand its network across the country, adding 5,796 BTSs where 57% of them are 3G and 4G BTSs to support the growth in data usage. Number of cellular customers increased by 16 million customers in FY 2016 compared to FY 2015 due to Company s attractive bundling offerings across services that is strongly related to customers live style. The company also saw number of data user growth which drove 147.1% data traffic growth and 46.7% data revenue growth year-on-year. In FY 2016, 52% of Indosat Ooredoo s customers connected to data using smartphone. On average, the data users consumed 1.7GB/month.

2 Full YEAR 2016 OPERATING AND FINANCIAL RESULTS PT Indosat Tbk ( Indosat Ooredoo or the Company ) has released its audited consolidated financial statements for the Full Year 2016 ( FY 2016 ). The audited consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards (IFAS). Audited Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Indicators YoY Quarterly (in IDR billion) FY 2016 FY 2015 Growth % 4Q Q 2016 Growth % Revenues 29, , , , Cellular 24, , , ,300.7 (1.5) MIDI 4, , , , Fixed Telecom ,119.3 (14.3) Expenses (25,244.1) (24,406.4) 3.4 (6,573.8) (6,433.5) 2.2 Operating Profit 3, , , ,149.0 (5.5) Other Expenses - Net (2,145.3) (4,147.9) (48.3) (630.7) (529.7) 19.1 Profit (Loss) for the Year Attributable to Owners of The Parent 1,105.0 (1,310.0) (37.8) EBITDA* 12, , , ,425.2 (0.8) EBITDA Margin 44.1% 42.9% 1.2 ppt 44.4% 45.2% (0.8) ppt Audited Consolidated Statement of Financial Position as of 31 December 2016 and 31 December 2015 (in IDR billion) FY 2016 FY 2015 Change (%) Total Assets 50, ,388.5 (8.2) Total Liabilities 36, ,124.7 (13.0) Total Equity** 14, , Total Debt 20, ,676.0 (14.8) Obligation Under Finance Lease 3, ,967.1 (11.4) Financial Ratios as of 31 December 2016 and 2015 Formula FY 2016 FY 2015 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, 2016 and AUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Revenues of IDR29,184.6 billion were recorded for FY 2016, an increase of IDR2,416.1 billion or 9.0% compared to FY Indosat s Cellular, MIDI, and Fixed Telecommunication businesses contributed 83%, 14%, and 3% respectively to the consolidated operating revenues for the year ended 31 December Cellular Revenues increased by 10.0% in FY 2016, mainly attributable to increases in Data, Voice, SMS and VAS revenue, offset by decrease in Interconnection revenue. MIDI Revenues increased by 10.0% compared to FY 2015, mainly driven by growth from IT service business contributed by Lintasarta, one Company s subsidiary. Fixed Telecommunication Revenues decreased by 14.3% compared to FY 2015, contributed by lower incoming traffic and appreciation of IDR rate against USD. Expenses of IDR25,244.1 billion were recorded for FY 2016, an increase of IDR837.7 billion or 3.4% over FY This increase is mainly contributed by Cost of Service, Depreciation and Amortization, Marketing expense, Personnel expense and General and Administration. Cost of Telecommunication Services: increased by IDR704.9 billion or 6.3% compared to FY 2015 mainly as a result of increase in frequency fees, rent, cost of SIM cards and installation cost offset by decrease in utilities, BlackBerry license fee and interconnection expenses which are in line with lower interconnection revenues. 2

3 Depreciation and Amortization: increased by IDR203.5 billion or 2.3% over FY 2015, due to additional asset recognition from network modernization deployment. Personnel Expenses: increased by IDR193.7 billion or 10.1% over FY 2015 mainly due to higher headcount. Marketing Expenses: increased by IDR1.1 billion or 0.1% over FY 2015, primarily from marketing activities related to intense offering in cellular business, offset by the absent of rebranding related expense in FY 2016 that occurred in FY General and Administration expenses: increased by IDR125.8 billion or 13.6% over FY 2015 mainly owing to brand license fee accrual. Other Expense - net: Indosat recorded expense of IDR2,145.3 billion, decreased by IDR2,002.6 billion or 48.3% lower over expense recorded in FY 2015 driven primarily by higher gain on foreign exchange - net and lower financing cost. Gain (Loss) on Foreign Exchange - net: Indosat recorded a net foreign exchange gain in FY 2016 of IDR273.8 billion compared to a net foreign exchange loss of IDR1,292.5 billion in FY 2015 as a result of IDR appreciation against USD in FY 2016 compared to IDR depreciation against USD in FY 2015 over respective previous year end. Please refer to Loss on Change in Fair Value of Derivatives - net account to see the full impact from USD/IDR exchange rate. Financing Costs: decreased by IDR573.2 billion or 20.3% lower over FY 2015 in line with lower debt as part of the Company s strategy. Interest Income: decreased by IDR107.1 billion or 49.0% lower over FY 2015 as a result of lower USD denominated time deposits in respective year. Loss on Change in Fair Value of Derivatives - net: Indosat recorded loss of IDR274.3 billion, increased by IDR29.8 billion over loss recorded in FY 2015 mainly due to the impact of higher derivative contract rates compared to JISDOR during Profit (Loss) for the Year Attributable to Owners of the Parent: Indosat recorded profit of IDR1,105.0 billion, increased by 184.4% over loss recorded in FY 2015 caused primarily by healthy operating income and lower financing cost of 20.3%. Audited Consolidated Statement of Financial Position Key Indicators (in IDR billion) FY 2016 FY 2015 Growth % Total Assets 50, ,388.5 (8.2) Total Liabilities 36, ,124.7 (13.0) Total Equity 14, , Current assets decreased by 18.6% to IDR8,073.5 billion, mainly resulting from decrease in cash and cash equivalent, lower prepaid expenses and lower prepaid taxes. Non-current assets decreased by 5.9% to IDR42,765.2 billion, mainly resulting from decrease in fixed assets due to depreciation. Current liabilities decreased by 4.8% to IDR19,086.6 billion mainly due to higher current maturities debts and bonds. Non-current liabilities decreased by 20.4% to IDR17,575.0 billion mainly due to lower long term debt payable and lower obligation under finance lease. Cash Flow and Capital Expenditure Key Indicators (in IDR billion) FY 2016 FY 2015 Growth % Net Cash Provided by Operating Activities 9, , Net Cash Used in Investing Activities (7,291.4) (7,145.4) 2.0 Net Cash Used in Financing Activities (4,251.3) (1,527.1) Net Foreign Exchange Differences from Cash and Cash Equivalents (83.2) Net Increase (Decrease) in Cash and Cash Equivalents (1,772.9) (1,337.2) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 3, , CASH AND CASH EQUIVALENTS AT END OF THE YEAR 1, ,623.4 (48.9) Net Cash Provided by Operating Activities increased by 12.0% mainly due to higher revenue. Net Cash Used in Investing Activities increased by 2.0% mainly due to higher payments for acquisition of fixed asset. Net Cash Used in Financing Activities increased by 178.4% mainly due to debts repayment. 3

4 Net Foreign Exchange Differences from Cash and Cash Equivalents decreased by 83.2% due to appreciation of the IDR on Cash and Cash Equivalents. Net change in Cash and Cash Equivalents decreased by 1,337.2% mainly due to higher payments for acquisition of fixed assets, repayments of debts and payment of obligation under finance lease. Cash-out CAPEX in FY 2016 amounted to IDR7,292.6 billion, a decrease of 0.8% over FY Of this amount, approximately 88.4% was allocated to cellular, mainly to support data services demand. The remaining balance was allocated to MIDI, infrastructure and IT Capex. STATUS OF DEBT, Indosat s total debt decreased by 14.8% compared to 31 December Debt repayments during the year were for SEK Loan Tranche A, B & C installments of USD37.9 million, HSBC Coface and Sinosure installments of USD20.1 million, 9-Year Commercial Loan installment from HSBC of USD4.1 million, RCF BTMU Facility of USD50.0 million, RCF Citibank Facility of USD30.0 million, RCF Mizuho Facility of USD60.0 million, RCF DBS Facility of USD50.0 million, Seventh Indosat Bonds Series B settlement of IDR600.0 billion, Sukuk Ijarah IV Series B settlement of billion, Indosat Bond I Phase II Seri A settlement of IDR554.0 billion, Indosat Sukuk Ijarah I Phase II Seri A settlement of IDR55.0 billion, BCA Investment credit facility of IDR150.0 billion, RCF BNI of IDR1,200.0 billion, RCF BNPP of IDR350.0 billion, RCF BTMU of IDR250.0 billion, RCF IIF/SMI of IDR750.0 billion, and RCF SMI of IDR100.0 billion. Debt issuance during the year were RCF Citibank Facility drawdown of IDR200.0 billion, RCF CIMB Niaga Facility drawdown of IDR400.0 billion, RCF BSMI Facility drawdown of IDR20.0 billion, Indosat Bond I Phase IV issuance of IDR3,172.0 billion and Indosat Sukuk Ijarah I Phase IV issuance of IDR288.0 billion. Total outstanding debt: As at 31 December 2016, the Company had total outstanding debts (net of unamortized debt issuance cost and consent solicitation fees) including obligation under finance lease of IDR23,674.7 billion. The Company has foreign exchange forward swaps covering USD119.0 million or 66.1% of the Company s USD denominated loans. The Company s cash position as at 31 December 2016 stood at IDR1,850.4 billion and net debt at IDR21,824.3 billion. The composition of Indosat debt is as follows: Debt Proportion (Principal amount) FY 2016 FY 2015 Growth % IDR Loans (billion) 4, ,151.0 (33.8) USD Loans (million) (58.3) IDR Bonds (billion) 13, , Total maturing debt: in the next twelve months, the Company has debts of IDR5.94 trillion and USD139.8 million coming to maturity. The average tenor of debt is 2.99 years as at 31 December OPERATIONAL RESULTS Cellular Key Indicators YoY Quarterly FY 2016 FY 2015 Growth % 4Q Q 2016 Growth % Customers - Postpaid (million) Customers - Prepaid (million) Customers - Total (million) ARPU (Postpaid) (IDR thousand) (1.0) ARPU (Prepaid) (IDR thousand) (3.5) ARPU (Blended) (IDR thousand) (3.4) MoU (2.8) ARPM (9.5) (1.0) The Company ended FY 2016 with a cellular customer base of 85.7 million, an increase of 22.8% or 16 million customers over FY 2015, following successful launching of Freedom Combo packages and Rp1/sec campaign. Average Revenue Per User (ARPU) for cellular customers in FY 2016 stood at IDR25.2 thousand or 3.4% lower compared to last year due to Indosat Ooredoo market share growth in ex-java where those areas currently deliver lower ARPU compared to Java. Average Minutes of Usage (MOU) per customer decreased to 68.4 minutes, a 2.8% decrease compared to FY 2015 in line with the downtrend of traditional voice service globally. Average Revenue Per Minute (ARPM) decreased to IDR127 representing a decrease of 9.5% compared to FY

5 MIDI Key Indicators Unit FY 2016 FY 2015 Growth % Indosat (Fixed Internet) International IP Transit (International IPT) Mbps 26,021 23, Dedicated Internet (IDIA) Mbps 9,258 6, Dedicated Internet (IDIA) - Flexi Mbps 1,717 1,925 (10.8) Domestic IP Transit (Domestic IPT) Mbps 15,411 11, Indosat (Fixed Connectivity) International Leased Circuit (IWL) Mbps 14,938 4, Domestic Leased Circuit (INL) Mbps 38,449 8, Domestic Ethernet Link (MPLS) Mbps 226, , International Ethernet Link (MPLS) Mbps 23,177 19, Domestic IPVPN Link (IPVPN Link) Mbps 11,217 4, International IPVPN Link (IPVPN Link) Mbps Lintasarta High Speed Leased Line 64Kbps 9,597,997 7,052, Frame Relay 64Kbps 85,610 99,722 (14.2) VSAT 64Kbps 171, , IPVPN 64Kbps 2,476,193 1,822, IM2 Internet Dial Up User 3,464 3,527 (1.8) Internet Dedicated Link IPVPN Link (37.4) In FY 2016, Fixed Internet revenue increased by 56.2% mainly driven by significant performance in subsidiary Lintasarta from government segment. Fixed Connectivity revenue decreased by 4.5% attributable to competitive pressure and migration of clear channels to IP in Wholesale, also termination of government related projects. IT Services revenue increased by 49.6% was driven by significant performance in subsidiary Lintasarta from government segment and ITSP IBM. MARKETING ACTIVITIES Cellular Dompetku feature for loan request and installment payment via DBS Launched on 19 October 2016, this was a new additional feature from Dompetku, offering loan request and installment payment through Dana Bantuan Sahabat, a product released by PT Bank DBS Indonesia. This feature is valid for all Dompetku customer, both Premium and Reguler, from transaction by UMB *789*9# (loan request) or *789*3*5# (installment payment) and from mobile apps Android as well. Tariff Local Pricing Tariff local pricing was charged for Indosat subscriber both on registration and on automatic package renewal based on its location, started from 23 December Voice & SMS package has 8 tariff zone based on subscriber location. For the time being, prevailing add-on packages namely Standalone Voice, Standalone SMS, Freedom Mini, Pro-Rakyat and Paket Hebat. Pintar Freedom (Indosat Business) Pintar Freedom is an additional special package dedicated for Indosat Business postpaid subscriber, with the need for unlimited communication solution, both for voice and SMS. Started from Desember 2016, this program offers various business solution, e.g.: 24 hour free on-net voice and SMS; Internet quota in all network (3G&4G); and 24 jam internet access. This program is not only supported by full option package, but also complemented by add-on option, which adjustable with company s bigger need, e.g. add-on off-net voice up to 600 minutes and SMS up to 3000 messages. 5

6 NETWORKS The Company operated 56,483 BTSs as of 31 December 2016, including 4G BTSs or added 5,796 BTSs compared to the previous year. To date, The Company operates 4,717 sites for 4G network in 112 main cities in Indonesia. Significant CAPEX investments focused on network modernization and data readiness, coverage, and capacity expansion to support ongoing growth. Key Indicators YoY FY 2016 FY 2015 Additional Base Transceiver Stations (BTS) 2G 24,042 23, G 27,724 23,730 3,994 4G 4,717 3,361 1,356 Base Station Controllers (BSC) (83) Mobile Switching Centers (MSC) About Indosat Indosat Ooredoo (IDX:ISAT), member of Ooredoo Group, is building Indonesia s leading digital telco, enabling access and greater connectivity for everybody and every business. Focusing on human growth, Indosat Ooredoo aspires to enrich the lives of Indonesians in the digital world and proactively offer solutions to fulfill their needs. The company reported 85.7 million mobile customers as of end of year 2016 and has recorded an increase of 147% in data usage compared to last year. Supported by more than 4,000 employees, Indosat Ooredoo has recorded an increase revenue of 9% compared to last year. Indosat Ooredoo was recognised in the Most Innovative Company of the Year category in the 2015 Asia Pacific Stevie Awards. 6

7 APPENDICES AUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For The Years Ended 31 December 2016 and 2015 (Expressed in Billions of Rupiah and Millions of U.S. Dollar) Description Periods Ended 31 December IDR USD (1) IDR Growth (2) (%) REVENUES Cellular 24, , , Multimedia, Data Communication, Internet (MIDI) 4, , Fixed Telecommunications ,119.3 (14.3) TOTAL REVENUES 29, , , (EXPENSES) INCOME Cost of Telecommunication Services (11,918.8) (887.1) (11,213.9) 6.3 Depreciation and Amortization (8,972.6) (667.8) (8,769.1) 2.3 Personnel (2,114,8) (157.4) (1,921.1) 10.1 Marketing (1,237.8) (92.1) (1,236.7) 0.1 General and Administration (1,049.4) (78.1) (923.6) 13.6 Amortization of Deferred Gain on Sale and Leaseback of Towers Loss on Foreign Exchange - net (5.9) (0.4) (306.6) (98.1) Others - net (85.9) (6.4) (176.5) (51.3) TOTAL EXPENSES (25,244.1) (1,878.8) (24,406.4) 3.4 OPERATING PROFIT 3, , Gain (Loss) on Foreign Exchange - net (1,292.5) Interest Income (49.0) Financing Cost (2,256.3) (167.9) (2,829.5) (20.3) Loss on Change in Fair Value of Derivatives - net (274.3) (20.4) (244.5) 12.2 OTHER EXPENSES - Net (2,145.3) (159.7) (4,147.9) (48.3) PROFIT (LOSS) BEFORE INCOME TAX 1, (1,785.8) INCOME TAX (EXPENSE) BENEFIT (519.6) (38.7) (183.5) PROFIT (LOSS) FOR THE YEAR 1, (1,163.5) PROFIT (LOSS) FOR THE YEAR ATTRIBUTABLE TO : OWNERS OF THE PARENT 1, (1,310.0) NON-CONTROLLING INTERESTS TOTAL 1, (1,163.5) ) Translated into U.S. dollars using IDR13,436 to USD1 (in full amounts) as the prevailing exchange rate as of the balance sheet date 2) Percentage changes may vary due to rounding. 7

8 AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Expressed in Billions of Rupiah and Millions of U.S. Dollar) Description 31 December December 2015 Growth (2) IDR USD (1) IDR (%) ASSETS Current Assets 8, ,918.7 (18.6) Non-Current Assets 42, , ,469.8 (5.9) TOTAL ASSETS 50, , ,388.5 (8.2) LIABILITIES Current Liabilities 19, , ,052.6 (4.8) Non-Current Liabilities 17, , ,072.1 (20.4) TOTAL LIABILITIES 36, , ,124.7 (13.0) TOTAL EQUITY 14, , , TOTAL LIABILITIES & EQUITY 50, , ,388.5 (8.2) 1) Translated into U.S. dollars using IDR13,436 to USD1 (in full amounts) as the prevailing exchange rate as of the balance sheet date 2) Percentage changes may vary due to rounding. AUDITED CONSOLIDATED STATEMENT OF CASH FLOWS For The Years Ended 31 December 2016 and 2015 (Expressed in Billions of Rupiah and Millions of U.S. Dollar) Description IDR USD (1) IDR Net Cash Provided by Operating Activities 9, ,706.7 Net Cash Used in Investing Activities (7,291.4) (542.7) (7,145.4) Net Cash Used in Financing Activities (4,251.3) (316.4) (1,527.1) Net Foreign Exchange Differences from Cash and Cash Equivalents Net Increase (Decrease) in Cash and Cash Equivalents (1,772.9) (132.0) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 3, ,480.0 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 1, , ) Translated into U.S. dollars using IDR13,436 to USD1 (in full amounts) as the prevailing exchange rate as of the balance sheet date 8

9 STATUS OF DEBT Facility Amount Maturity Interest IDR Bond (IDR Billion) Bond V 1, Series B Fixed 10.65% p.a. Bond VIII 2, & 2022 Series A Fixed 8.625% p.a. and Series B Fixed 8.875% p.a. 2, , 2019, Series A Fixed 10.00% p.a., Series B Fixed 10.30% p.a., Indosat Bond I Phase I Indosat Bond I Phase II Indosat Bond I Phase III Indosat Bond I Phase IV Sharia Bond (IDR Billion) 2, , & , 2020, 2022 & , 2020, 2022 & , 2019, 2021, 2023 & 2026 Series C Fixed 10.50% p.a. and Series D Fixed 10.70% p.a. Series B Fixed 9.25% p.a, Series C Fixed 10.00% p.a, Series D Fixed 10.25% p.a and Series E Fixed 10.40% Series A Fixed 10.00% p.a, Series B Fixed 10.25% p.a, Series C Fixed 10.60% p.a and Series D Fixed 11.20% p.a Series A Fixed 7.50% p.a, Series B Fixed 8.00% p.a, Series C Fixed 8.60% p.a, Series D Fixed 9.00% p.a and Series E Fixed 9.15% p.a Sukuk Ijarah V Fixed Ijarah Return amounting to IDR 6.47 payable on a quarterly basis Indosat Sukuk Ijarah I Phase I , 2019 & 2021 Fixed Ijarah Return amounting to IDR1.60, IDR0.412, and IDR2.89 for Series A, B and C payable on a quarterly basis Indosat Sukuk Ijarah I Phase II , 2020, 2022 & 2025 Fixed Ijarah Return amounting to IDR1.76, IDR1.68, IDR1.10 and IDR4.55 for Series B,C D and E payable on a quarterly basis Indosat Sukuk Ijarah I Phase III & 2025 Fixed Ijarah Return amounting to IDR1.72 and IDR1.15 for Series A and B payable on a quarterly basis Indosat Sukuk Ijarah I Phase IV , 2019, 2021 & 2026 Fixed Ijarah Return amounting to IDR3.06, IDR1.22, IDR0.22 and IDR1.24 for Series A, B, C and D payable on a quarterly basis IDR Loan (IDR Billion) RCF - BCA 2, & 2018 Floating rate 1 month JIBOR % p.a. RCF - BSMI Floating rate 1 month JIBOR % p.a. RCF - CIMB Niaga & 2019 Floating rate 1 month JIBOR % p.a. RCF - Citibank BCA - Investment Credit Facility Floating rate 1 month JIBOR % p.a. Fixed 9.50% p.a. RCF - Mizuho Floating rate 1 month JIBOR % p.a. Loans from non-controlling interest of LMD** Fixed 2.00% p.a. USD Loan (USD Million) HSBC France - Coface Fixed 5.69% p.a. HSBC France - Sinosure Floating Rate based on 6m US LIBOR % p.a.* SEK Loan Fixed rate 4.26% p.a. over USD11.07; Fixed rate 4.24% p.a. over USD8.57 RCF - ANZ Floating Rate based on 1m US LIBOR % p.a.*** * Swapped to Fixed Rate at 4.82% p.a. ** LMD (PT Lintas Media Danawa) are indirect subsidiary of the Company through PT Aplikanusa Lintasarta ( Lintasarta ) *** Libor 1M swapped to Fixed Rate 0.73% p.a. 9

10 DEBT MATURITIES WITHIN THE NEXT TWELVE MONTHS (FULL AMOUNTS) Maturity 1Q Q Q Q 2017 Facility SEK Loan Tranche B Inst. HSBC France - Coface HSBC France - Sinosure Inst. RCF - BCA RCF - Citibank RCF - ANZ SEK Loan Tranche C Inst. RCF - BSMI Indosat V B RCF - CMIB Niaga HSBC France - Coface HSBC France - Sinosure Inst. Indosat Bond I Phase IV - Series A Indosat Sukuk Ijarah I Phase IV - Series A SEK Loan Tranche C Inst. Investment Credit BCA Indosat Bond I Phase I - Series A Indosat Sukuk Ijarah I Phase I - Series A RCF Mizuho Amount USD 11,071,429 7,859,335 2,210, ,000,000 4,285,714 7,859,335 2,210,000 4,285,714 IDR 1,000,000,000, ,000,000, ,000,000,000 1,370,000,000, ,000,000,000 1,075,000,000, ,000,000, ,000,000, ,000,000,000 64,000,000, ,000,000,000 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. 10