Investor memo

Tickers Nine Months 2019

IDX : ISAT
6 November 2019
Market Capitalization
As of 30 September 2019
IDR 15.5 trillion Indosat Ooredoo Outperforms With 12.4% YoY Growth in the Top Line,
Issued Shares
Improved Network Experience Continues to Drive Positive Subscribers
5,433,933,500 Growth
Share Price
As of 30 September 2019 During 9M 2019, Indosat Ooredoo recorded IDR 15.1tn in cellular revenue, a 14.5% robust increase
IDR2,850 compared with the same period last year. This growth was mainly driven by substantial data revenue
Hi / Lo growth for 9M 2019, in the back of 71.7% YoY growth in data traffic. Total revenue for 9M 2019
IDR3,830 / IDR1,645
reached IDR 18.9tn, a solid 12.4% YoY growth compared to 9M 2018, this led to a robust EBITDA
Shareholder Structure growth of 40.7% YoY to IDR 7.2tn for 9M 2019, with EBITDA margin at 38.4%. CAPEX in 9M 2019
As of 30 September 2019 recorded at IDR 8.6tn, an increase of 76.7% compared to the same period last year, maintaining
Ooredoo Asia Pte. Ltd. 65.00%
Republic of Indonesia 14.29% intensive 4G network rollout.
Free Float 20.71%

IDR to USD Conversion

As of 30 September 2019
1 USD = IDR14,174
Corporate & Bond Ratings
As of 30 September 2019
Pefindo : Stable Outlook
idAAA
Local Currency Debt
idAAA(sy)
Local Sukuk Ijarah
Fitch : Negative Outlook
: AAA (idn)
Investor Relations
PT Indosat Tbk - Indonesia
Ph: +62 21 30442292
E-mail:
investor@indosatooredoo.com
http://www.indosatooredoo.com
IO continued to build on subscriber growth delivered by improved network experience and simplified
product portfolio. We remain committed to our strategy of delivering the best services to our
customers. Customer base is recorded at 58.8mn an addition of 2.1 million subscriber or 3.6%
increase compared to 2Q 2019.
The Company’s three years strategy to expand 4G coverage and improving experience is
consistently being executed. The Company now operates more than 29K 4G BTS which cover 83.5%
of the population.
On 14 October 2019, the Company signed Sales and Purchase Agreements with PT Dayamitra
Telekomunikasi (Mitratel) and PT Professional Telekomunikasi Indonesia (Protelindo), whom have
been declared as the winners of competitive tender process for the sale of 3,100 towers. Mitratel and
Protelindo have been awarded with 2,100 and 1,000 towers respectively, with a total transaction
amount of IDR 6.39 trillion. The transaction consideration is all in cash and to be fully paid at closing,
which is anticipated to take place before the end of the year, subject to customary closing conditions
including shareholders approval of the Company’s EGMS on 21 November 2019.

Please refer to the important

disclaimer at the back of this
document
 NINE MONTHS 2019
OPERATING AND FINANCIAL RESULTS

PT Indosat Tbk (“Indosat Ooredoo” or the “Company”) has released its unaudited interim consolidated financial
statements for the Nine Months 2019 (“9M 2019”). The unaudited interim consolidated financial statements have
been prepared in accordance with Indonesian Financial Accounting Standards (IFAS).
Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)
Key Indicators YoY Quarterly
(in IDR billion) 9M 2019 9M 2018 Growth % 3Q 2019 2Q 2019 Growth %
Revenues 18,853.0 16,769.8 12.4 6,561.5 6,245.3 5.1
• Cellular 15,084.6 13,175.8 14.5 5,122.9 5,103.3 0.4
• MIDI 3,248.1 3,025.4 7.4 1,260.1 961.8 31.0
• Fixed Telecom 520.3 568.6 (8.5) 178.5 180.2 (0.9)
Expenses (17,331.7) (16,586.5) 4.5 (5,837.2) (5,685.8) 2.7
Operating Profit 1,521.3 183.3 730.2 724.3 559.5 29.5
Other Expenses - Net (1,942.5) (1,673.6) 16.1 (667.8) (649.2) 2.9
(Loss) Profit for the Period
Attributable to Owners
of The Parent (284.6) (1,539.0) 81.5 47.3 (39.4) 220.1
EBITDA* 7,237.6 5,144.8 40.7 2,804.7 2,276.2 23.2
EBITDA Margin 38.4% 30.7% 7.7 ppt 42.7% 36.4% 6.3 ppt

Financial Ratios
Formula 9M 2019 9M 2018
EBITDA Margin EBITDA/Operating Revenue 38.4 30.7
Interest Coverage*** EBITDA/Interest Expense 4.36 4.91
Net Debt to EBITDA**** (Debt - Cash & Cash Equivalent)/Total EBITDA 2.71 2.44
* EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-IFAS measure that management believes is a useful a
supplemental measure of cash generated 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 IFAS 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 IFAS. 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 periods ended September 30, 2019 and 2018.
**** Net debt excludes obligation under financial lease

INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(UNAUDITED)

Revenues of IDR18,853.0 billion were recorded for 9M 2019, an increase of IDR2,083.2 billion or 12.4% higher
compared to 9M 2018. Indosat Ooredoo’s Cellular, MIDI, and Fixed Telecommunication business each contributed
80%, 17%, and 3% respectively to the consolidated operating revenues for the period ended 30 September 2019.

• Cellular Revenues increased by 14.5% compared to 9M 2018, attributable to an increase in Data revenue,
offsetting the decrease in voice and SMS.
• MIDI Revenues increased by 7.4% compared to 9M 2018, mainly attributable to increase in Internet and IT
services revenues.
• Fixed Telecommunication Revenues decreased by 8.5% compared to 9M 2018 due to a decline in
incoming traffic.

Expenses of IDR17,331.7 billion were recorded for 9M 2019, an increase of IDR745.2 billion or 4.5% higher over
9M 2018. This increase is mainly contributed by Depreciation and Amortization, Cost of Services, General and
Administration, and Marketing expenses, offset by decrease in Personnel Expense.

• Cost of Services: increased by IDR232.8 billion or 2.7% higher compared to 9M 2018 in line with the
increase in revenue.
• Depreciation and Amortization: increased by IDR950.2 billion or 15.5% higher over 9M 2018, due to
additional fixed assets from network roll out.
• Personnel Expenses: decreased by IDR391.7 billion or 23.4% lower over 9M 2018 mainly due to one-off
reversal.
• Marketing Expenses: increased by IDR49.4 billion or 6.9% higher over 9M 2018, mainly due to intensive
marketing initiatives to strengthen its distribution network to enable last mile product availability.
• General and Administration expenses: increased by IDR99.9 billion or 18.8% higher over 9M 2018 mainly
due to higher professional fees during 9M 2019.

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Other Expense - net: Indosat Ooredoo recorded expense of IDR1,942.5 billion, increased by IDR268.9 billion or
16.1% higher over expense recorded in 9M 2018 driven primarily by higher finance costs on loans and under
lease liabilities due to PSAK 73 early implementation which is offset by the gain on foreign exchange.

Loss for the Period Attributable to Owners of the Parent: Indosat Ooredoo recorded net loss of IDR284.6
billion, decreased by 81.5% over net loss recorded in 9M 2018 primarily caused by recovery on revenue growth.

UNAUDITED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Key Indicators (in IDR billion) 9M 2019 FY 2018 Growth %
ASSETS
Current Assets 10,627.5 7,906.5 34.4
Non-Current Assets 47,745.0 45,233.1 5.6
TOTAL ASSETS 58,372.5 53,139.6 9.8
LIABILITIES
Current Liabilities 21,190.7 21,040.4 0.7
Non-Current Liabilities 25,337.8 19,963.0 26.9
TOTAL LIABILITIES 46,528.5 41,003.4 13.5
TOTAL EQUITY 11,844.0 12,136.2 (2.4)
TOTAL LIABILITIES & EQUITY 58,372.5 53,139.6 9.8

• Current assets increased by 34.4% to IDR10,627.5 billion, mainly due to frequency fee prepayment and
reclassification of assets held for sale related to tower and investment to be sold in near future.
• Non-current assets increased by 5.6% to IDR47,745.0 billion, mainly due to higher property and equipment
related to early implementation of PSAK 73.
• Current liabilities remain stable at IDR21,190.7 billion.
• Non-current liabilities increased by 26.9% to IDR25,337.8 billion mainly due to higher long-term payables
and lease liabilities - long-term portion related to early implementation of PSAK 73.

Cash Flow and Capital Expenditure

Key Indicators (in IDR billion) 9M 2019 9M 2018 Growth %
Net Cash Flows Provided by Operating Activities 5,176.3 2,910.8 77.8
Net Cash Flows Used in Investing Activities (6,825.2) (3,910.7) 74.5
Net Cash Flows Provided by Financing Activities 1,811.9 415.3 336.3
Net Foreign Exchange Differences from Cash and Cash Equivalents (1.4) 38.1 (103.8)
Net Increase (Decrease) in Cash and Cash Equivalents 161.6 (546.5) (129.6)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 1,045.0 1,674.7 (37.6)
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 1,206.6 1,128.2 6.9

CAPEX in 9M 2019 amounted to IDR8,578.0 billion, increased 76.7% over 9M 2018. Approximately 90.6% of the
capex was allocated to cellular, to support data services demand and the remaining balance was allocated to
MIDI, infrastructure and IT Capex.

STATUS OF DEBT
Total outstanding debt: As of 30 September 2019, the Company had total outstanding gross debts (excluding
unamortized transaction costs and obligation under finance lease) of IDR24,501.1 billion. The Company’s cash
position as at 30 September 2019 stood at IDR1,206.6 billion and net debt is at IDR23,294.5 billion. The
composition of the Company’s gross debt, excluding obligation under finance lease, is as follows:

Debt Proportion (Principal amount) 9M 2019 9M 2018 Growth %

IDR Loans (billion) 6,856.1 3,111.0 120.4
USD Loans (million) - 20.1 (100.0)
IDR Bonds (billion) 17,645.0 17,519.0 0.7
Total maturing debt: in the next twelve months, IDR6,1 trillion of the Company’s debt is maturing. The average
tenor of debt is 3.0 years as of 30 September 2019.

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 OPERATIONAL RESULTS

YoY Quarterly
Key Indicators
9M 2019 9M 2018 Growth % 3Q 2019 2Q 2019 Growth %
Customers - Postpaid (million) 1.5 1.5 0.7 1.5 1.6 (8.4)
Customers - Prepaid (million) 57.3 62.6 (8.6) 57.3 55.1 3.9
Customers - Total (million) 58.8 64.1 (8.4) 58.8 56.7 3.6
ARPU (Postpaid) (IDR thousand) 96.4 95.3 1.1 95.6 111.5 (14.3)
ARPU (Prepaid) (IDR thousand) 25.8 15.4 67.6 25.7 26.9 (4.4)
ARPU (Blended) (IDR thousand) 27.8 16.8 66.0 27.6 29.3 (5.8)
MoU 33.7 34.9 (3.5) 30.2 34.1 (11.6)
Data Traffic (TB) 2,245,733 1,307,813 71.7 866,927 755,930 14.7
SMS Traffic (bn) 11.3 25.0 (54.8) 3.2 3.8 (14.2)

The Company ended 9M 2019 with total cellular customer base of 58.8 million, a decrease of 8.4% over 9M 2018
due to implementation of SIM card registration regulation, however, for 3Q 2019 subscriber grew by 3.6%
compared with 2Q 2019, this is the second quarter of positive net subscriber add for Indosat.

Average Revenue per User (ARPU) for cellular customers in 9M 2019 stood at IDR27.8 thousand or IDR11.0
thousand higher compared to 9M 2018.

Average Minutes of Usage (MOU) per customer decreased to 33.7 minutes, a 3.5% decrease compared to
9M 2018 in-line with the industry downtrend of traditional voice service.

NETWORKS

The Company operated 95,190 BTSs as of 30 September 2019, adding 28,188 BTSs compared to the same
period last year. To date, the Company has operated 29,317 4G BTS.

YoY
Key Indicators
9M 2019 9M 2018 Change
Base Transceiver Stations (BTS) 2G 23,268 22,127 1,141
3G 42,605 33,239 9,366
4G 29,317 11,636 17,681

About Indosat Ooredoo

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. Indosat Ooredoo aspires to enrich the lives of Indonesians in the digital world.

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INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
For Nine-Month Periods Ended 30 September 2019 and 2018
(Expressed in Billions of Rupiah)
Growth
Description 2019 2018
(%) (1)
REVENUES
Cellular 15,084.6 13,175.8 14.5
Multimedia, Data Communication, Internet (MIDI) 3,248.1 3,025.4 7.4
Fixed Telecommunications 520.3 568.6 (8.5)
TOTAL REVENUES 18,853.0 16,769.8 12.4

(EXPENSES) INCOME
Cost of Services (8,926.9) (8,694.1) 2.7
Depreciation and Amortization (7,089.2) (6,139.0) 15.5
Personnel (1,285.8) (1,677.5) (23.4)
Marketing (770.4) (721.0) 6.9
General and Administration (632.3) (532.4) 18.8
Net Gain on Asset Received 534.7 - 100.0
Amortization of Deferred Gain on Sale and Leaseback of Towers 105.8 105.8 0.0
Share of Net Profit of Associates and Joint Ventures 105.8 84.8 24.7
Gain (Loss) on Foreign Exchange - net 11.2 (9.5) 218.1
Gain Associated with the Loss of Control of a Subsidiary - 924.9 (100.0)
Others - net 615.4 71.5 760.7
TOTAL EXPENSES (17,331.7) (16.586,5) 4.5

OPERATING PROFIT 1,521.3 183.3 730.2

Interest Income 59.8 29.9 100.3

Gain (Loss) on Foreign Exchange - net 20.9 (188.3) (111.1)
Finance Costs (2,005.0) (1,556.5) 28.8
(Loss) Gain on Change in Fair Value of Derivatives - net (18.2) 41.3 (144.1)

OTHER EXPENSES - Net (1,942.5) (1,673.6) 16.1

LOSS BEFORE INCOME TAX (421.2) (1,490.3) 71.7

INCOME TAX BENEFIT 165.0 237.3 (30.5)

LOSS FOR THE PERIOD (256.2) (1,253.0) 79.6

(LOSS) PROFIT FOR THE PERIOD ATTRIBUTABLE TO :
OWNERS OF THE PARENT (284.6) (1,539.0) 81.5
NON-CONTROLLING INTERESTS 28.4 286.0 (90.1)
TOTAL (256.2) (1,253.0) 79.6
1) Percentage changes may vary due to rounding.

Disclaimer
This document contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of Indosat
Ooredoo, 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 Ooredoo'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 Ooredoo, or indicated by any such forward looking statements, will be achieved.

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