(in billion Rupiah, except for Net income per share and Net income per ADS)
2006*
2007*
2008*
2009*
2010*
Total Operating Revenues
54,748
62,683
64,166
67,678
68,629
Total Operating Expenses
32,980
36,093
41,729
44,890
46,138
Adjusted EBITDA**)
31,902
37,200
34,770
36,762
37,102
OPERATING INCOME
21,768
26,590
22,437
22,788
22,491
Other Income (Expenses)-net
258
(721)
(2,038)
(341)
(1,075)
INCOME BEFORE TAX
22,026
25,869
20,399
22,447
21,416
NET INCOME
11,029
13,043
10,672
11,399
11,537
Net income per share of Common Stock
548.3
653.4
540.4
579.5
586.5
Net income per ADS(40:1 Common Stock:ADS)
21,932.9
26,136.4
21,615.2
23,180.8
23,461.6
Consolidated Financial and Operational Ratios
Year ended December 31,
2006*
2007*
2008*
2009*
2010*
Return on Assets (ROA)(%)
14.7
15.9
11.7
11.7
11.6
Return on Equity (ROE)(%)
40.2
39.2
31.5
29.5
26.0
Current Ratio (%)
66.5
76.0
53.7
60.2
91.5
Total Liabilities to Total Assets (%)
52.6
48.1
52.2
49.3
43.4
Operating Margin (%)
39.8
42.4
35.0
33.7
32.8
Average Collection Period (Days)
24.8
19.6
20.0
20.4
23.1
Adjusted EBITDA Margin (%)
58.3
59.3
54.2
54.3
54.1
Net Income Margin(%)
20.1
20.8
16.6
16.8
16.8
Debt to Equity (%)
56.1
47.4
58.2
56.6
48.2
Debt to Adjusted EBITDA(%)
48.2
42.4
56.8
59.5
57.7
Adjusted EBITDA to Interest Expense(times)1
24.8
25.9
21.2
17.5
19.2
Adjusted EBITDA to Net Debt(%)2
457.5
680.2
277.2
267.5
312.4
PRODUCTIVITY RATIOS :
Total Revenue/Employee (Rp billion)
1.6
1.9
2.1
2.4
2.6
LIS/Employee (line)3
465.9
593.4
853.7
1,015.6
1,252.0
(1). Adjusted EBITDA to interest expense represents adjusted EBITDA divided by interest expense. (2). Adjusted EBITDA to net debt represents adjusted EBITDA divided by total debt minus cash and cash equivalents, temporary investments and
escrow accounts as of December 31 of that year.
(3). LIS per employee represents fixed wireline and fixed wireless subscribers dividedby total TELKOM's employees as a parent company.
*) As restated, with the implementation of PPSAK 1 (see Note 2.p.i to Consolidated Financial Statement, (i) the presentation of the interconnection revenue from net to gross basis, which previously in accordance with telecommunication industry practice in Indonesia, the Company adopted a net basis; (ii) reclassification of outgoing calls to other operator from interconnection revenues to telephone revenues; (iii) deferral of the installation and connection revenues; (iv) recognition of revenue sharing arrangement in a manner similar to capital lease.
**) Adjusted EBITDA is defined as operating income before depreciation and amortization. Adjusted EBITDA and the related ratios presented in this Annual Report are supplemental measures of our performance and liquidity that are not required by, or presented in accordance with, Indonesian GAAP. EBITDA is not a measurement of our performance under Indonesian GAAP and should not be considered as alternative to net income, operating income or any other performance measures derived in accordance with Indonesian GAAP or as alternatives 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 costs 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 operating income to our Adjusted EBITDA.
