FULL YEAR 2018 Results

| |PT Indosat Tbk. – FY 2018 Results 2

• PT Indosat Tbk ( “Indosat Ooredoo” or “Company” ) cautions investors that certain statements contained in this document state its management's intentions, hopes, beliefs, expectations, or predictions of the future are forward-looking statements

• The Company wishes to caution the reader that forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to:

• The Company’s ability to manage domestic and international growth and maintain a high level of customer service

• Future sales growth

• Market acceptance of the Company’s product and service offerings

• The Company’s ability to secure adequate financing or equity capital to fund our operations

• Network expansion

• Performance of the Company’s network and equipment

• The Company’s ability to enter into strategic alliances or transactions

• Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment

• Regulatory approval processes

• Changes in technology

• Price competition

• Other market conditions and associated risks

• The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information, or otherwise


4G Pop. Coverage

Java (%)

4G Pop. Coverage

Ex-Java (%)


Operating Revenue

EBITDA

EBITDA Margin

Profit (Loss) Attributable to shareholders

23,140 -22.7%

6,500 -49.1%

-14.5ppt

-2,404 -311.6%

6,370 11.7%

1,355 -17.5%

21.3% -7.5ppt

-865 -2.3%

in IDR billion

28.1%

29,926

12,763

42.6%

1,136

5,704

1,642

28.8%

-845


1,375

1,043 9671,016

1,358

220

232 178158

161

in IDR billion

+11.7% QoQ-13.5% YoY

CellularFixed DataFixed Voice

+1.9% | -27.1%

+33.7% | -1.2%

+7.1% | -15.9%

QoQ | YoY

4Q-17 1Q-18

4,228

7,360

5,692

2Q-18

5,765

5,373

4,417

3Q-18

5,704

4,530 4,851

4Q-18

6,370


110.296.2

75.364.1 58.0

-47.3% YoY -9.5% QoQ

in million in million

13.2

-14.0

-20.9

-11.1

-6.1

4Q-17 4Q-171Q-18 1Q-182Q-18 2Q-183Q-18 3Q-184Q-18 4Q-18

| |

3729

3540 40

PT Indosat Tbk. – FY 2018 Results 8

-38.3% YoY -9.6% QoQ

Voice Traffic

in billion minutes (Voice Traffic)

in minute/subscriber (MOU)

MOU

17.6 12.4 15.9 21.6 24.6

+13.8% QoQ+39.8% YoY

ARPU

in thousand IDR (ARPU)

4Q-17 4Q-171Q-18 1Q-182Q-18

11.6 9.4 8.5 7.9 7.2

2Q-183Q-18 3Q-184Q-18 4Q-18


333,263368,232

449,105490,476

562,615

in TByte

+14.7% QoQ+68.8% YoY

4Q-17 1Q-18 4Q-17

66% 70%72% 71%

76%

+5.0% QoQ+10.0% YoY

1Q-182Q-18 2Q-183Q-18 3Q-18 4Q-184Q-18


38.8

34.1

29.0 28.8

21.3

2,856

1,9421,560 1,642

1,356

-17.5% QoQ-52.5% YoY

EBITDA

in IDR billion

EBITDA Margin

4Q-17

1,105 1,136

-2,404

-311.6% YoY+2.8% YoY

FY-18FY-17FY-16

in IDR billion

1Q-18 2Q-18 3Q-18

in %

4Q-18


1.43 1.38

18,36117,868 20,419

FY-18FY-16 FY-17

Net Debt Net Debt/EBITDA

in IDR billion

+14.3% YoY

3.14

*Excluding obligation under finance lease

Higher gearing during investment

mode, committed to maintain the

ratio below the covenant which as

4x net debt to EBITDA.

| |

3,752

1,322 1,350

2,183

4,434

51.0

23.2 25.1

38.3

69.6

PT Indosat Tbk. – FY 2018 Results 12

in IDR billion

-1,335

55041

-1,591

-290

Capex (Spent)

in IDR billion

Capex/Revenue

4Q-17

in %

4Q-17

1Q-18

1Q-18 2Q-18

2Q-18

3Q-18

3Q-18 4Q-18

4Q-18


23,999 24,294 24,427 22,127 22,423

30,179 31,062 31,880 33,23935,453

7,179 9,019 10,066 11,636 17,050

+11.8% QoQ+22.1% YoY

2G3G

4Q-17

4G

61,357

1Q-18

64,375

2Q-18

66,373

3Q-18

67,002

• Massive network expansion at

the end of 2018

• Delivered more than 1,000 4G

sites per week, with top speed of

1,200 sites per week.

• 4G population coverage also

improved from 45% to 80% by

end of 2018.4Q-18

74,926


Consolidated Revenue Growth Below market

EBITDA Margin Mid 30’s

CAPEX ~ IDR 8 trillion(Spent)

-22.7%

28.1%

IDR 9.3 trillion(Spent)

In Line w/ Market

Low 30’s

~ IDR 10 trillion(Spent)


On September 16, 2014, the South Jakarta Attorney Office (“Kejaksaan

Negeri Jakarta Selatan”), without preliminary notification, executed the

Supreme Court’s Decision on Mr. Indar Atmanto. The execution was

done based on a quotation of the Supreme Court’s Decision, which

states, among others, that (i) Mr. Indar Atmanto is found guilty and

sentenced to eight years imprisonment and charged with penalty of

Rp300,000,000,- (if the penalty is not paid, Mr. Indar Atmanto would

serve an additional six months imprisonment), and (ii) IM2 pay the

losses sustained by the State amounting to Rp1,358,343,346,674,-.

Subsequently, on January 16, 2015, Mr.Indar Atmanto and/or his lawyer

or IM2 received the document on the Supreme Court’s decision

regarding the litigation case. As of the issuance date of the

consolidated financial statements, Mr. Indar Atmanto and IM2 plan to

conduct further legal act by submitting a reconsideration request

peninjauan kembali (”PK”).

On March 16, 2015, Mr. Indar Atmanto’s submission of Judicial Review

[Peninjauan Kembali (”PK”)] was officially registered at the Corruption

Court under No. 08/AKTA.PID.SUS/PK/TPK/2015/PN.Jkt.Pst.

On November 4, 2015, the Supreme Court’s official website announced

that the Judicial Review filed by Mr. Indar Atmanto was rejected based

on Supreme Court’s decision dated October 20, 2015. However, no

detailed information regarding the exact content of such Supreme

Court’s decision was available. As of the issuance date of the interim

consolidated financial statements, the official copy of such Supreme

Court’s decision hasn’t been received.


On December 8, 2017, S&P Global Ratings raised its long-term corporate credit rating on

Indonesia-based telecommunications operator PT Indosat Tbk. (Indosat) to 'BBB-' from

'BB+'. The outlook is stable. The upgrade reflects their expectation that Indosat will

maintain its solid cash flow adequacy and reduce debt over the next 12-24 months. The

company's steady cash flows, moderate capital spending, and prudent financial policies

should support the improvement. We anticipate that Indosat's ratio of funds from

operations (FFO) to debt will remain above 40% until 2019.

On 25 January 2019, PEFINDO has assigned “idAAA” rating to PT Indosat Tbk (ISAT)’s

proposed Shelf Registration Bond III Year 2018-2020 and “idAAA(sy)” rating to ISAT’s

proposed Shelf Registration Sukuk Ijarah III Year 2018-2020. PEFINDO has also affirmed its

“idAAA” ratings for ISAT and its Shelf Registration Bond II Year 2017-2019, Shelf

Registration Bond I Year 2014-2016, and Bond VIII Year 2012. PEFINDO has also affirmed its

“idAAA(sy)” ratings for ISAT’s Shelf Registration Sukuk Ijarah II Year 2017-2019, Shelf

Registration Sukuk Ijarah I Year 2014-2016, and Sukuk Ijarah V Year 2012. The outlook for

the corporate rating is “stable”.

On 18 February 2019, Moody's Investors Service has reaffirmed Baa3 of Indosat Tbk. (P.T.)

(Indosat Ooredoo)’s standalone credit strength, which reflects its established market

position, strong financial profile and their expectation of moderate growth in the cellular

market. The outlook for the rating is stable. The stable outlook reflects their expectation

that Indosat Ooredoo will maintain a strong financial profile through steady revenue and

earnings growth and that the competitive and regulatory environments will remain

moderate.

On 19 February 2019, Fitch Ratings has revised Indonesian telecom operator PT Indosat

Tbk's (Indosat Ooredoo) Outlook to Negative from Stable. At the same time, the agency

has affirmed the company’s Long-Term Foreign- and Local-Currency Issuer Default Ratings

(IDR) at 'BBB+', and the foreign-currency senior unsecured rating at 'BBB+'. Fitch Ratings

Indonesia has also affirmed the National Long-Term Rating at ‘AAA(idn)’, with Stable

Outlook.


0.29

6.07

4.44

2.16

3.26

1.06

1.03 1.07

0.26

1.31

0.52

In IDR trillion

20202019 2022

IDR

USD in IDR

2021 20242023 2025 2026

* Excluding obligation under finance lease

2027 2028


Number of BTS

2 x 12.5

2 x 15

2 x 7.5

Indosat

Telkomsel

XL Axiata

2 x 20.0

2 x 22.5

2 x 22.5

2 x 15.0

2 x 15.0

2 x 15.0

in Mhz

Hutchison - 2 x 10.0 2 x 15.0

15.0*

45.0

-

-

* Indosat/IM2: West Java exclude Bogor, Depok & Bekasi

2020 2020 2019, 2026,2028

2019Valid until

Smartfren 2 x 11.0 30.0 - -

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