1 page

PT Indosat Tbk. First Half 2012 Results

2 page

Today’s Agenda

● 1H 2012 Results

● Operational Updates

● Financial Results

● Management Focus

● Supplemental Information

3 page

Financial KPIs

Profit Attributable to Owners of The Company decline due to non-cash FX-related loss

* Restated June 2012

In IDR bn 1H 2012 1H 2011* YoY 1Q 2012 2Q 2012 QoQ

Cellular 8,526 8,219 3.7% 4,080 4,447 9.0%

Fixed Data 1,371 1,201 14.2% 672 699 4.0%

Fixed Voice 479 621 (22.9%) 225 254 13.1%

Operating Revenue 10,377 10,042 3.3% 4,977 5,400 8.5%

EBITDA 4,879 4,565 6.9% 2,338 2,541 8.7%

EBITDA Margin 47.0 45.5 1.5ppt 47.0 47.1 0.1ppt

Profit Attributable to

Owners of The Company

(132) 724 (118%) 17 (149) (990%)

4 page

1H 2012 Overview

• Consolidated Revenue growth of 3.3% to

IDR10.37tn

• Cellular Revenue growth of 3.7% to IDR8.5tn

• EBITDA growth of 6.9% to IDR4.9tn; EBITDA

Margin growth of 1.5 ppt. to 47.0%

• Free Cash Flow declined 7.5% to IDR1,245bn

• Profit Attributable to Owners of The Company

declined to a loss of IDR132 bn

• Debt increased by 16.9%

• Customer base growth 7.6% to 50.9 million

customers

YoY Results

5 page

1H 2012 Quarterly Overview

• Consolidated Revenue growth of 8.5%

• Cellular Revenue growth of 9.0%

• EBITDA growth of 8.7%; EBITDA Margin growth of

0.1ppt to 47.1%

• Free Cash Flow increased to IDR1.16 tn

• Profit Attributable to Owners of The Company

declined to a loss of IDR149 bn

• Debt increased by 11.6%

• -1.2m Net Additions in 2Q 2012

QoQ Results

6 page

Today’s Agenda

● 1H 2012 Results

● Operational Updates

● Financial Results

● Management Focus

● Supplemental Information

7 page

Customer Market Share

Total Customer (mn)

Customer Growth Market Share

• Stable customer base, slow growth

expected going forward due to maturing

market

• Focus on customer value; active base

growing healthily

YoY QoQ

Total 245.4 million Customer

Sources : Company data & IA Estimation

Note : Excluding CDMA

34%

17%

8%

-2%

Market Share

20.7%

47.2%

18.7%

5.6%7.8%

TSEL

ISAT NTS

Hutch

XL

1H-12

8 page

Usage Trends

Data Usage (Tbyte)

Voice (bn minutes) SMS Delivered (bn)

• Voice traffic still growing at a solid pace

• Strong quarterly SMS traffic growth amidst

continued migration of SMS traffic towards

data

13.4 14.2 14.1 13.8 15.0

Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

12%

9%

67 66 63 58 67

Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

0.1%

16%

1,074 849 735 671 593

1,263 1,671 2,107 2,569 2,830

Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

Wireless Broadband Mobile Internet

46%

6%

9 page

Operational Overview

ARPU (IDR Thousand)

ARPM (IDR) MOU (minute)

95.3 96.2 97.9 90.3 90.7 98.0

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

3%

8%

160 160 154 152 137 130

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

-19%

-5%

28.8 29.8 29.7 25.2 25.1 26.9

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

-7%

7%

• ARPU and MoU grew healthily amidst

lower ARPM

• Relatively stable metrics with good

potential to stimulate usage, especially

driven by data

10 page

Q2 -2012

vs

Q2 2011

2Q 2012

vs

1Q 2012

Voice 8.7% 1.8% Voice revenue increased 1.8% QoQ due to IM3

Seru Anti Galau campaign

SMS 55.8% 19.3% Successful SMS campaigns driving growth

Data 8.3% 6.0%

Mobile Internet 17.1% 7.8% Resulting from change from tariff realignment to

Rp. 1/Kb

Wireless Broadband 53.1% 17.9% Customer growth 10.2% YoY and growth 8.5%

QoQ, offset by lower traffic due to IM2 integration

VAS 70.4% 10.6% Mainly impacted by CP Regulation

Cellular Revenue Performance

SMS showed solid growth while Data continues to transition from high ARPU wireless

broadband to mobile internet

11 page

12,846 14,385 15,216 15,816 16,898

1,316

1,9682,892

3,437

4,141

2008 2009 2010 2011 1H-12

2G 3G

Network Roll-out Progress

BTS Roll-out

• Reached 4,141 Node-B Stations by end

of 1H 2012

• Additional 1,551 2G BTSs and 1,080 3G

BTSs in 1H2012

• Roll-out of low cost and high quality

3G/HSPA (U900) network a key priority

50%

47% 19%

6% 4%

21%

12%

7%

12 page

Today’s Agenda

● 1H 2012 Results

● Operational Updates

● Financial Results

● Management Focus

● Supplemental Information

13 page

Total Revenue

• Revenue uplift from newly implemented

SMS interconnect regulation

• Cellular continues to dominate the

revenue mix while fixed data has also

shown strong growth.

Operating Revenues

Figures in IDR billion

3%

9%

14 page

Revenue Profile

Cellular

14,30016,016 16,736

2009 2010 2011

12%5%

Fixed Data Fixed Voice

Competitive and regulatory environment impacting cellular growth,

data growth not yet enough to compensate

Figures in IDR billion

8,219 8,526

4,080 4,447

1H-11 1H-12 1Q-12 2Q-12

4%

9%

2,721 2,476 2,576

2009 2010 2011

4% -9%

1,201 1,371 672 699

1H-11 1H-12 1Q-12 2Q-12

4% 14%

1,803 1,293 1,250

2009 2010 2011

-28% -3%

621 479 225 254

1H-11 1H-12 1Q-12 2Q-12

13% -23%

9%

15 page

3,567 4,002

1,874 2,128

1,162 698

336 362

455 500

245 254

293 299

184 115

3,152 3,431

1,704 1,727

1H-11 1H-12 1Q-12 2Q-12

COS Personel Marketing G&A D&A

Operating Expenses

• Lower Personnel expenses YoY and

QoQ due to VSS cost taken in H1 2011

• Improved costs control and efficiency

resulted in better OPEX profile

Operating Expenses

6%

4%

Figures in IDR billion

16 page

EBITDA

EBITDA EBITDA Margin

Improved cost control and efficiency results in strong EBITDA growth

8,7459,641 9,541

2009 2010 2011

10%-1%

4,565 4,8792,338 2,541

1H-11 1H-12 1Q-12 2Q-12

7%

8%

46.6% 48.5% 46.4%

2009 2010 2011

-2.1ppt 1.9ppt

45.5% 47.0% 47.0% 47.1%

1H-11 1H-12 1Q-12 2Q-12

1.5ppt 0.1ppt

Figures in IDR billion

17 page

Profit Attributable to Owners of The Company

Profit

1,498

760903

2009 2010 2011

19%-50%

724

-132 17 -149

1H-11 1H-12 1Q-12 2Q-12

-118%

-990%

• Significant decline in Net Profit due to

FX rate movements in the period,

caused by weakening IDR against

USD from December 2011 to June

2012

• 8.8% increase in D&A charges due to

continued high investment levels

Figures in IDR billion

18 page

FCF and CAPEX

Free Cash Flow CAPEX and CAPEX / Revenue

(6,619)

878 1,282

2009 2010 2011

114%

46%

1,346 1,247

83

1,164

1H-11 1H-12 1Q-12 2Q-12

1,308%

Figures in IDR billion

-7%

10,670

6,535 6,058

57%

33%

29%

0%

10%

20%

30%

40%

50%

60%

0

2,000

4,000

6,000

8,000

10,000

2009 2010 2011

-39% -7%

2,558

3,174

1,4021,771

25%

30%28%

33%

0%

5%

10%

15%

20%

25%

30%

35%

0

500

1,000

1,500

2,000

2,500

3,000

1H-11 1H-12 1Q-12 2Q-12

24%

26%

Improved FCF position in Q2 2012 due to higher revenue generation and

better working capital management, amidst higher CAPEX spending

19 page

Debt Summary

Gross Debt* and Gross Debt / EBITDA

Net Debt and Net Debt / EBITDA Maturity Profile

Covenants

24,99322,376

26,063

2.77

2.342.64

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

0

5,000

10,000

15,000

20,000

25,000

1H-10 1H-11 1H-12

17% -11%

*Before amortized issuance cost, to calculate ratio

Figures in IDR billion

• Net Debt to Equity

• Gross Debt to Equity

• Net Debt to EBITDA

• Gross Debt to EBITDA

• Interest Coverage

1.15X

1.41X

2.64X

5.93X

2.15X

2.5X

3.5X

3.0X

Note : RCF Mandiri is placed in 2014

21,504 20,365 21,189

2.382.13 2.15

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

0

5,000

10,000

15,000

20,000

25,000

1H-10 1H-11 1H-12

4% -5%

20 page

Today’s Agenda

● 1H 2012 Results

● Operational Updates

● Financial Results

● Management Focus

● Supplemental Information

21 page

21

Near-Term Management Focus

1. Execution focus - accelerate commercial momentum

2. Strengthen data value proposition

3. Enhance customer experience

4. Drive operational excellence culture

5. High performance data network – U900 Trial

22 page

Today’s Agenda

● 1H 2012 Results

● Operational Updates

● Financial Results

● Management Focus

● Supplemental Information

23 page

Ratings Updates

FitchRatings

On 30 April 2012, FitchRatings upgraded Indonesia-

based Indosat Long-Term Foreign and Local-

Currency Issuer Default Ratings (IDR) and Foreign

Currency senior unsecured rating to ‘BBB’ from

‘BBB-‘. The Outlook is Stable.

Pefindo

On 12 June 2012, Pefindo assigned Indosat, all its

IDR Bond and Sukuk Ijarah rating ‘idAA+’, ‘idAA+’, and

‘idAA+(sy)‘ respectively. The Outlook is stable. The

ratings reflect the strong parent support, Indosat’s

stable market position, and its stable operating

performance. However, the ratings are offset by

Indosat aggressive capital structure and intense

competition within the telecommunication industry.

Standard & Poor’s

The upgrades reflect the improvement in

Indosat's credit profile expectations and also

reflects Indosat’s high leverage in competitive

Indonesian cellular market

On 3 July 2012, Standard and Poor’s (“S&P”) has

upgraded Long-Term Credit Rating and the Indosat’s

Guaranteed Notes Rating to ‘BB+’ from ‘BB‘. S&P

also removed all the ratings from their CreditWatch.

The Outlook is Stable to reflect S&P expectation that

Indosat's operating performance will be stable. The

agency also raised their long-term ASEAN regional

rating scale on Indosat to ‘axBBB+’ from ‘axBBB-’.

24 page

Thank You

Upcoming

events

Any further

questions?

Indosat Investor Relations

Jl. Medan Merdeka Barat No. 21

Jakarta - 10110

Tel: +62 21 30442615

Investor@indosat.com

3Q-2012 Results

Mid Q4 2012

25 page

• PT Indosat Tbk cautions investors that certain statements contained in this document state

management's intentions, hopes, beliefs, expectations, or predictions of the future are forward-looking

statements

• Management 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:

• Our ability to manage domestic and international growth and maintain a high level of customer service

• Future sales growth

• Market acceptance of our product and service offerings

• Our ability to secure adequate financing or equity capital to fund our operations

• Network expansion

• Performance of our network and equipment

• Our 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

Disclaimer