2011 Annual Report

PT TELEKOMUNIKASI INDONESIA, Tbk.

Financial Highlights
(Based on IFAS)

 

Consolidated Statements of Financial Position

(in billion of Rupiah)
  As of December 31,
2007* 2008* 2009* 2010 2011
Total Current Assets 15,978 14,622 16,095 18,729 21,258
Total Non-Current Assets 66,078 76,634 81,836 81,772 81,796
Total Assets 82,056 91,256 97,931 100,501 103,054
Total Current Liabilities 21,018 27,218 26,892 20,473 22,189
Total Non-Current Liabilities 18,441 20,444 21,544 23,613 19,884
Total Liabilities 39,459 47,662 48,436 44,086 42,073
Equity Attributable to Owners of the Parent 33,292 33,910 38,562 44,419 47,510
Non-Controlling Interest 9,305 9,684 10,933 11,996 13,471
Net Working Capital (5,040) (12,596) (10,797) (1,744) (931)

 

Consolidated Statements of Comprehensive Income

(in billions of Rupiah, except for Income per Share and Income per ADS)

  Year ended December 31,
2007* 2008* 2009* 2010 2011
Total Revenues 63,303 64,974 68,220 69,177 71,918
Total Expenses 36,392 43,606 44,139 46,254 49,970
Adjusted EBITDA** 37,521 33,700 38,056 37,535 36,811
PROFIT 26,911 21,368 24,081 22,923 21,948
Total Finance Costs - Net (1,042) (969) (1,634) (1,507) (1,091)
PROFIT BEFORE INCOME TAX 25,869 20,399 22,447 21,416 20,857
Income Tax (Expense) Benefit (8,015) (5,674) (6,404) (5,546) (5,387)
PROFIT FOR THE YEAR 17,854 14,725 16,043 15,870 15,470
Profit for the year attributable to:
Owners of the parent 13,043 10,672 11,399 11,537 10,965
Non-Controlling Interest 4,811 4,053 4,644 4,333 4,505
17,854 14,725 16,043 15,870 15,470
Income per share of Common Stock 653.40 540.38 579.52 586.54 559.67
Income per ADS (40:1 Common Stock:ADS) 26,135.70 21,615.20 23,180.80 23,461.60 22,386.80

 

Capital Expenditures

(in billions of Rupiah)

  Year ended December 31,
2007 2008 2009 2010 2011
Telkom 3,508 6,087 5,652 3,623 4,202
Telkomsel 12,132 15,915 12,673 8,197 8,472
Others Subsidiaries 140 243 836 831 1,929
Total 15,780 22,245 19,161 12,651 14,603

 

Consolidated Financial and Operational Ratios

  Year ended December 31,
2007* 2008* 2009* 2010 2011
Return on Asset (ROA) (%)1  15.9 11.7 11.6 11.5 10.6
Return on Equity (ROE) (%)2  39.2 31.5 29.6 26.0 23.1
Current Ratio (%)3  76.0 53.7 59.9 91.5 95.8
Total Liabilities to Total Assets (%)4  48.1 52.2 49.5 43.9 40.8
Total Liabilities to Equity (%)5  118.5 140.6 125.6 99.3 88.6
Profit Margin (%)6  42.5 32.9 35.3 33.1 30.5
Average Collection Period (days)7  19.4 19.7 19.8 22.9 24.9
Adjusted EBITDA Margin (%)8  59.3 51.9 55.8 54.3 51.2
Net Income Margin (%)9  20.6 16.4 16.7 16.7 15.2
Debt to Equity (%)10 47.4 58.2 56.7 48.2 36.5
Debt to Adjusted EBITDA (%)11  42.0 58.6 57.5 57.0 47.2
Adjusted EBITDA to Interest Expense (times)12  24.0 20.5 18.2 19.5 22.5
Adjusted EBITDA to Net Debt (%)13  686.1 268.6 278.4 316.0 499.6
PRODUCTIVITY RATIOS:          
Total Revenue/Employee (in billions of Rupiah) 1.9 2.2 2.4 2.6 2.8
LIS/Employee (line)14 593.4 853.7 1,015.6 1,252.0 1,154.7
(1) ROA represents profit for the year attributable to owners of the parent divided by total assets as of December 31 of that year.
(2) ROE represents profit for the year attributable to owners of the parent divided by equity attributable to owners of the parent as of December 31 of that year.
(3) Current ratio represents current assets divided by current liabilities as of December 31 of that year.
(4) Total liabilities to total assets represent total liabilities divided by total assets as of December 31 of that year.
(5) Total liabilities to equity represent total liabilities divided by equity attributable to owners of the parent as of December 31 of that year.
(6) Profit margin represents profit divided by total revenues.
(7) Average collection period represents trade receivables divided by total revenues times 365 days.
(8) Adjusted EBITDA margin represents adjusted EBITDA divided by total revenues.
(9) Net income margin represents profit for the year attributable to owners of the parent divided by total revenues.
(10) Debt to equity represents total debt exclude obligation under finance lease divided by equity attributable to owner of the parent as of December 31 of that year.
(11) Debt to adjusted EBITDA represents debt exclude obligation under finance lease divided by adjusted EBITDA.
(12) Adjusted EBITDA to interest expense represents adjusted EBITDA divided by interest expense.
(13) Adjusted EBITDA to net debt represents adjusted EBITDA divided by total debt exclude obligation under finance lease minus cash and cash equivalents, available for sale financial assets and escrow accounts as of December 31 of that year.
(14) LIS per employee represents fixed wireline and fixed wireless subscribers divided by total TELKOM's employees as a parent company.
*)
Reclassified, refer to Note 2a and 47 to our Consolidated Financial Statements.

 

Reconciliation of Profit to Adjusted EBITDA

(in billions of Rupiah)

  2007* 2008* 2009* 2010 2011
Profit 26,911 21,368 24,081 22,923 21,948
Add:          
Depreciation 9,440 11,070 12,566 13,085 13,701
Amortization 1,170 1,262 1,409 1,527 599
Impairment loss - - - - 563
Adjusted EBITDA 37,521 33,700 38,056 37,535 36,811

**)

Adjusted EBITDA is defined as profit before depreciation and amortization (including impairment loss). Adjusted EBITDA and the related
ratios presented in this Annual Report are supplemental measure of our performance and liquidity that are not required by, or presented in accordance with, IFAS. Adjusted EBITDA is not a measurement of our performance under IFAS and should not be considered as alternative to net profit or any other performance measures derived in accordance with IFAS or as alternative to cash flow from operating activities as a measure of our liquidity. We consider adjusted EBITDA to be a useful measure of our operating performance because it reflects the underlying operating cash cost by eliminating depreciation and amortization. The methods we use to calculate adjusted EBITDA may differ from the use of the term EBITDA or adjusted EBITDA by other companies. The following table shows the reconciliation of our profit to our adjusted EBITDA.

 

Financial Highlights

KAP Tanudiredja, Wibisana & Rekan, a member firm of the PwC global network ("PwC"), was appointed to audit our Consolidated Financial Statements for the fiscal years 2006, 2007, 2008, 2009, 2010 and 2011 (collectively the "Consolidated Financial Statements"). Prior to March 8, 2010, KAP Tanudiredja, Wibisana & Rekan was named KAP Haryanto Sahari & Rekan.

Our Consolidated Financial Statements were prepared in accordance with IFAS, which differ in certain significant respects from International Financial Reporting Standards ("IFRS"). See Note 48 to our Consolidated Financial Statements for a summary of the significant differences between IFAS and IFRS, as well as reconciliation to IFRS of the statement of financial position and statement of comprehensive income for the year ended December 31, 2011.

On December 31, 2011, the financial statements of nine of our subsidiaries were consolidated into the Consolidated Financial Statements for the year 2011. The nine companies are PT Telekomunikasi Indonesia International ("Telin", a wholly-owned subsidiary), PT Dayamitra Telekomunikasi ("Mitratel", a wholly-owned subsidiary), PT Pramindo Ikat Nusantara ("Pramindo", a wholly-owned subsidiary), PT Telekomunikasi Selular ("Telkomsel", in which we own a 65.00% stake), PT Multimedia Nusantara ("Metra", a wholly-owned subsidiary), PT Infomedia Nusantara ("Infomedia", wholly-owned through a direct interest and a 49.00% stake owned by Metra), PT Indonusa Telemedia ("Indonusa", wholly-owned through a direct interest and a 0.46% stake owned by Metra), PT Graha Sarana Duta ("GSD", in which we own a 99.99% stake), and PT Napsindo Primatel Internasional ("Napsindo", in which we own a 60.00% stake). See Note 1d to our Consolidated Financial Statements.

The table below summarizes our financial information for each specified year. This information should be read in conjunction with "Management's Discussion and Analysis – Financial Overview" and please also refer to our Consolidated Financial Statements and the related notes in this Annual Report.

 
Year ended December 31,
2007* 2008* 2009* 2010 2011 2011
(In billions of Rupiah, except for per share, dividend and per
ADS amounts)
(In millions
of US$,
except for
per share,
dividend
and per ADS
amounts)(1)

Consolidated Statements of Comprehensive Income Data
IFAS

REVENUES

Telephone
           
Cellular
23,541 26,529 28,532 29,134 28,598 3,154
Fixed lines 19,683 16,709 14,286 12,940 11,619 1,281
Data, internet and information technology services 14,785 14,768 18,512 19,801 23,924 2,638
Interconnection 3,637 4,363 3,867 3,735 3,509 387
Network 707 1,079 1,218 1,058 1,301 143
Other telecommunications services 330 718 1,263 1,961 2,302 254
Total Revenues 62,683 64,166 67,678 68,629 71,253 7,857
Other Income 620 808 542 548 665 73
EXPENSES            
Operation, maintenance and telecommunication services 9,662 12,301 14,549 16,046 16,372 1,806
Depreciation and amortization 10,610 12,332 13,975 14,612 14,863 1,639
Personnel 8,414 8,979 8,371 7,332 8,555 943
Interconnection 3,055 3,263 2,929 3,086 3,555 392
Marketing 1,769 2,350 2,260 2,525 3,278 362
General and administrative 2,583 2,504 2,806 2,537 2,935 324
Loss (gain) on foreign exchange - net 295 1,614 (973) (43) 210 23
Share of (profit) loss of associated companies (7) (20) 30 14 10 1
Others - net 11 283 192 145 192 21
Total Expenses 36,392 43,606 44,139 46,254 49,970 5,511
PROFIT BEFORE FINANCE (COST) INCOME 26,911 21,368 24,081 22,923 21,948 2,419
Finance income 519 672 462 421 546 60
Finance costs (1,561) (1,641) (2,096) (1,928) (1,637) (181)
Total Finance Costs - Net (1,042) (969) (1,634) (1,507 (1,091 (121)
PROFIT BEFORE INCOME TAX 25,869 20,399 22,447 21,416 20,857 2,298
INCOME TAX (EXPENSE) BENEFIT            
Current tax (7,234) (5,824) (6,030) (4,669) (5,673) (626)
Deferred tax (781) 150 (374) (877) 286 32
  (8,015) (5,674) (6,404) (5,546) (5,387) (594)
PROFIT FOR THE YEAR 17,854 14,725 16,043 15,870 15,470 1,704
OTHER COMPREHENSIVE INCOME (EXPENSE)            
Foreign currency translation - net of tax 2 8 (7) 2 7
Change in fair value of available-for-sale financial assets - net of tax 2 (30) 37 32 4
Total comprehensive (expense) income - net of tax 4 (22) 30 34 11
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 17,858 14,703 16,073 15,904 15,481 1,705
Profit for the year attributable to:            
Owners of the parent 13,043 10,672 11,399 11,537 10,965 1,209
Non-controlling interest 4,811 4,053 4,644 4,333 4,505 495
  17,854 14,725 16,043 15,870 15,470 1,704
Total comprehensive income attributable to:            
Owners of the parent 13,047 10,650 11,429 11,571 10,976 1,210
Non-controlling interest 4,811 4,053 4,644 4,333 4,505 495
  17,858 14,703 16,073 15,904 15,481 1,705
BASIC EARNING PER SHARE            
Weighted average number of shares outstanding (in millions) 19,962 19,749 19,669 19,669 19,592 19,592
Income per share 653.40 540.38 579.52 586.54 559.67 0.06
Income per ADS (40 series B shares per ADS) 26,135.70 21,615.20 23,180.80 23,461.60 22,386.80 2.47
Dividend relating to the period (accrual basis)            
Dividends declared per share 455.87 296.94 288.06 322.59 - -
Dividends declared per ADS 18,234.80 11,877.60 11,522.40 12,903.60 - -
Dividend paid in the period (cash basis)            
Dividends declared per share(2) 303.25 407.42 323.59 275.45 308.56 0.03
Dividends declared per ADS 12,130.00 16,296.80 12,943.60 11,017.83 12,342.57 1.36

 

 
Year ended December 31,
2007*  2008*  2009*  2010  2011  2011 
(In billions of Rupiah, except for per share, dividend and per ADS
amounts)
(In millions
of US$,
except for
per share,
dividend
and per
ADS
amount)(1)
Consolidated Statements of
Financial Position Data
           
IFAS            
Current assets 15,978 14,622 16,095 18,729 21,258 2,344
Non-current assets 66,078 76,634 81,836 81,772 81,796 9,020
Total assets 82,056 91,256 97,931 100,501 103,054 11,364
Current liabilities(3) 21,018 27,218 26,892 20,473 22,189 2,447
Non-current liabilities 18,441 20,444 21,544 23,613 19,884 2,193
Total liabilities 39,459 47,662 48,436 44,086 42,073 4,640
Capital Stock 5,040 5,040 5,040 5,040 5,040 556
Equity attributable to owners of
the parents
33,292 33,910 38,562 44,419 47,510 5,240
Non-controlling interest 9,305 9,684 10,933 11,996 13,471 1,484
Total liabilities and equity 82,056 91,256 97,931 100,501 103,054 11,364

 

(1) US Dollar figures are included solely for reader convenience and were made using the middle of the market buying and selling rates published by Reuters on December 31, 2011, which is Rp9,067.5 per US Dollar. This rate should not be construed as representative of the rate at which Rupiah amounts have been, could have been or could in the future be converted into US Dollar.
(2) In 2007, we paid a dividend computed as a cash dividend for 2006 of Rp254.80 per share and interim cash dividend 2007 of Rp48.45 per share. In 2008, we paid a dividend computed as a cash dividend and special dividend for 2007 of Rp455.87 per share less the interim cash dividend of Rp48.45 per share paid in November 2007. In 2009, we paid a cash dividend for 2008 of Rp296.94 per share and interim cash dividend 2009 of Rp26.65 per share. In 2010, we paid a cash dividend for 2009 of Rp261.41 per share and interim cash dividend 2010 of Rp26.75 per share. In 2011, we paid a cash dividend for 2010 of Rp322.59 per share (see Note 33 to our Consolidated Financial Statements).
(3) Includes current maturities of long term loans..
*)
Reclassified, refer to Note 2a and 47 Consolidated Financial Statements.

 

Financial Achievements

  1. Our consolidated revenue grew by 3.8% to Rp71,253 billion.
  2. We increased the contribution of our data, internet and IT business by 4.7% to 33.6% of our total revenue.