PT Indosat Tbk · PT Telkom SK Telecom Chunghwa Telecom China Mobile Bharti Airtel Indosat EBITDA growth Earning growth ... The Indonesia Institute for Corporate Governance (IICG)

FY-07 Indosat Presentation page1

PT Indosat TbkFull Year 2007 Results


Six quarter consecutive

growth

Our brands are well positioned with the

clearest messages in the market

Three pronged strategies are againproven to improve the company performance

Three pronged strategies are againproven to improve the company performance

Indosat Key Messages for 2007

FY 2007 resultexceeds our full

guidance

Our three line of businesses, Cellular, Fixed data and FixedVoice are growing

• Asia Telecom Industry • Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 initiatives• Our awards

Content


Asia Telco benchmark: Revenue, EBITDA and Earning Growth

In 2007, Indosat financial growth is among “the highest “ in the region

Revenue Growth

Citigroup, Asia Connect, January 2008 & Company Data

0.2%

4.1%

5.7%

11.0%

17.0%

21.0%

22.0%

23.4%

59.4%

SingTel

Advanced Info

SK Telecom

StarHub

Chunghwa Telecom

PT Telkom

China Mobile

Indosat

Bharti Airtel

7.5%

13.0%

28.7%

29.0%

30.6%

44.8%

12.6%

16.0%

20.0%

23.0%

23.0%

23.6%

40.0%

-13.0%

-0.3%

-4.1%

-0.5%

-0.4%

StarHub

AdvancedInfo

SingTel

PT Telkom

SK Telecom

ChunghwaTelecom

ChinaMobile

Bharti Airtel

Indosat

EBITDA growthEarning growth

• Asia Telecom Industry• Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 initiatives• Our awards

Content


CDMA 13.5%14.0 million

Subs

GSM 86.5%87.9 Million Subs

Telkom (Flexi)45.8%

Mobile8 (Fren)22.7%

Bakrie (Esia)27.1%

Indosat (StarOne)4.5%

Telkomsel54.5%

Indosat27.9%

Exelcomindo17.6%

Maxis

Sampoerna

Smart

Company’s data and estimates

Hutchison : 2 Million subs

Ten player telecommunications industry

Indosat lives in the most crowded industry in the world, but GSM dominates the industry


IndonesianTelecommunication Market

Telecommunication Penetration

total telecom market: 110.6 mn(penetration 44.9%)

Source Merrill Lynch Global Wireless Matrix 3Q 2007; Company data, Analyst report and media info

Wireless Penetration 3Q 2007

GSM 80.8 Million Subscribers

GSM 87.9 mn 35.68%

Fixed Phone 8.7 mn 3.53%

CDMA 14.0 mn 5.68%

40%

82%

71%

57%

Malaysia Thailand* Philipines Indonesia


Content


Indosat shareholding structure

ICL 44.9%

14.29%

ST Telemedia

AMH

75%

100%

40.8%

Qatar Telecom

25%

AMH combined ownership: 40.81%

PublicGovernment of

Indonesia

• Indonesian Government owns 14.29%, including Series A share• Indosat’s shares are majority owned by public investors (44.90%). They have been listed in JSX and

NYSE for more than 10 years.• ST Telemedia stake in Indosat remains 75% through its AMH. AMH through Indonesia

Communications Limited owns (40.81%)


Wide range of service for customers


Content


Operating Revenues

EBITDA

Fixed Data (MIDI) Revenues

Net Income

Cellular subscribers

Fixed Voice Revenues

BTS (Network) expansion

Cellular Revenues

Rp. 16,489 mn

Rp. 8,715 mn

Rp. 2,169 mn

Rp. 2,042 mn

24.5 mn

Rp. 1,567 mn

10,760

Rp. 12,752 mn

35%

24%

14%

45%

47%

41%

49%

38%

achievement YoY

23.7 mn

10,721

guidance

EBITDA margin 57.7% 57%-59%

20%

25%

v

v

achieved

v

vv

(1) installed

Key highlights


Start of Turnaround

Six consecutive quarter revenue growth since second quarter 2006

Revenue growth ramp

2,8152,868

3,105

3,454

3,613

3,816

2,965

2,965

2,844

2,900

4,224

3,368

Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407

In R

p B

io


Net Income (Rp. bn)EBITDA (Rp. bn) and EBITDA margin

Robust Earnings

Earning perShare (EPS)

Indosat delivers “growth” in EBITDA, net income and EPS. Even in the intensified competition, we are able

to maintain EBITDA margin by 57.7%

8,715

7,052

6,017

6,732

57.70% 58.10% 57.60%57.78%

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2004 2005 2006 200740.00%

45.00%

50.00%

55.00%

60.00%

65.00%

EBITDA EBITDA Margin

1,633 1,6241,410

2,042

2004 2005 2006 2007

313.9 309.0

260.9

375.9

2004 2005 2006 2007


Gearing Ratio (Net Debt)

Strong balance sheet and sufficient flexibility to support

business growth

Interest Coverage

Debt to EBITDA

Strong balance sheet

624.3%585.4%

542.6%559.2%

531.4%

2003 2004 2005 2006 2007

48.90%41.60%

54.40% 56.70%52.20%

2003 2004 2005 2006 2007

190.7%

224.5%208.7%

262.7%

191.9%

2003 2004 2005 2006 2007


Market rewarded Indosat growth momentum

Growth momentum

starts

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ISAT IHSG

• Asia Telecom Industry • Emerging Market• Indosat overview• Our performance• Our Strategy• Our 2008 in initiatives• Our awards

Content


Cover all provinces; most regencies and around 60% districts

Cover almost 90% population

Subs per BTSIndosat: 2,424;Tsel: 2,289, XL: 1,386

MOU per BTS:Indosat: 119,929;Tsel: 113,454, XL:69,324

Performance based incentives

More than 100.000 outlets

Saving costs

Prudent Network rollout

Enhanced distribution

scheme

Continued product and

services innovation

The most clearestbrand positioning

Top brand awareness

Leading wireless broadband

StarOne rebound

Source: Macquarie 2008 and Company’s data

Proven three pronged cellular strategy

Company Data and Market Estimates


Content


Grow fixed data services through

provision of Indosat Corporate

Solution

w i r e l e s s s e r v i c e s r e b o u n d

Lead in wireless broadband services

Accelerate expansion outside Java and maintain dominant position

in Java

Prepare for competition with the best capacity capability and product and offering

innovations

Key initiatives in 2008

Continue prudent network rollout policy


Grow total (net) revenue at least 18%;Grow cellular (net) revenue at least 20%

Increase subscriber (net add ) byaround 6 million subs

Maintain EBITDA margin (over net) between 57%-59%

Add CAPEX around USD 1.2 billion (85% will be dedicated for cellular expansion)

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Guidance 2008 for Investor


Content


Products Awareness


Corporate Governance and Social Responsibility

Indosat adopts the best corporate governance and undertakes high responsibility to the society

The company maintained, in all material control , effective internal control over financial reporting as of December 31, 2006, based on the COSO criteria. (Auditor opinion of 2006)

The Indonesia Institute for Corporate Governance (IICG) and SWA magazine acknowledge Indosat as the trusted publicly owned company for infrastructure, utility and transportation category in its Corporate Governance Perception Index (CGPI) award.

Our CSR programs

Ø EDUCATION

• Indosat Wireless Innovation Contest (IWIC)

• Teacher Development Program • Building schools• Scholarship• Financial Assistance

Ø INDONESIA HEALTH PROGRAMØ DISASTER RECOVERYØ JOINT PHILANTHROPY/CHARITY

PROGRAM


Thank You

PT Indosat Tbk · PT Telkom SK Telecom Chunghwa Telecom China Mobile Bharti Airtel Indosat EBITDA growth Earning growth ... The Indonesia Institute for Corporate Governance (IICG)

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