Telkom Investor Summit Nov 10

(1)

Corporate Presentation

Investor

Summit

November

10,

2010

(2)

2

Disclaimer

This

document

contains

financial

conditions

and

result

of

operation,

and

may

also

contain

certain

projections,

plans,

strategies,

and

objectives

of

the

Company,

which

would

be

treated

as

forward

looking

statements

within

the

meaning

of

applicable

law.

Forward

looking

statements,

by

their

nature,

involve

risk

and

uncertainty

that

could

cause

actual

results

and

development

to

differ

materially

from

those

expressed

or

implied

in

these

statements.

(3)

Highlights of Nine Month 2010 Results



TELKOM consolidated operating revenue

for

9M10

increased

to

Rp52.1

trillion

or

3.9%.



Cellular subscribers base grew strongly

by

17%

year

on

year

(YoY)

to

93.1

million

subscribers

during

9M10

with

a

total

net

add

of

11.5

million

subscribers

.



Broadband subscribers

rose by 155% to 6,381K

with

Data,

Internet

and

IT

services

consolidated

revenue

increasing

by

15%.

(4)

Telkom

Indonesia

(5)

Telkom Board of Directors

Rina ldi Firm a nsya h

President Director (CEO)

Sudiro Asno

Director of Finance (CFO)

Erm a di Da hla n

Director of Network & Solution (COO)

Arie f Y a hya

Director of Enterprise & Wholesale

Fa isa l Sya m

Director of Human Capital & General Affair

I N yom a n G Wirya na t a

Director of Consumer

Pra se t io

Director of

Compliance & Risk Management

I ndra U t oyo

(6)

6

Telkom Backbone Network

BANDAACEH PALEMBANG DENPASAR KUPANG DLI BDRLAMPUNG MANADO FAKFAK JAYAPURA PALU PBR PONTIANAK BANDUNG AMBON SORONG BALIKPAPAN JAKARTA BATAM MATARAM PAREPARE SAMARNDA SINGAPORE PENANG SATUN SEMARANG BANJARMASIN MAKASAR SURABAYA ENDE MEDAN Songkhla

TIS (Thailand)

SANGATA BATURAJA DMCS, BENGKULU WAINGAPU KETAPANG PKL.BUN AAG (Hongkong, USA)

JAMBI

TERNATE

IP Core Link :

‐170 GBps‐

8 pair Core Router 8 x 2 x 10 GBps

& 1 x 10 GBps

IP Core Link :

‐170 GBps‐

8 pair Core Router 8 x 2 x 10 GBps

& 1 x 10 GBps

International Link :

34.5 GBps

International Link :

34.5 GBps

TIMIKA

MERAUKE Main IP Core Link :

‐465.6 GBps‐

3 pair Terra Router 3 x 2 x 77.6 GBps

Main IP Core Link :

‐465.6 GBps‐

3 pair Terra Router 3 x 2 x 77.6 GBps

AAG Consortium : Development of

(7)

Telkom Ownership

Telkom is the largest telecommunication company and

network provider in Indonesia, majority owned by the

Government of Indonesia

(Total shares = 20,159,999,280, including 1 Dwiwarna share series A)

Government

Public

52.47%

10,320,470,712shares

Treasury Stock

490,574,500 shares

47.53%

9,348,954,068shares

Market cap : Rp185.5TnRp185.5Tn, or 6.35%6.35%of total market cap. at IDX Indonesia

TELKOM is listed at

Indonesia Stock Exchange (IDX), New York Stock Exchange (NYSE), London Stock Exchange (LSE)and also Publicly Offering Without Listing (POWL) at

(8)

8

Telkom Subsidiaries and Affiliates

(ownership)

Government

of I ndonesia Public/ Listed

52.47%

52.47% 47. 53%47. 53%

100% 100% 100%

100% 99.99%99.99%

65% 65% (Cellular) (Cellular) 100% 100% (Tower business) (Tower business) (Multimedia) (Multimedia) 100% 100% (IT Services) (IT Services)

(Property & construction) (Property & construction) (Media & Edutainment)

(Media & Edutainment)

100% 100% (International business) (International business) 100% 100% (Telco Equipment) (Telco Equipment) 29.71% 29.71% 100% 100% 100%

100% 75%75% 60%60% 51%51%

by metra-net

Melon I ndonesia

100% 100%

Direct Subsidiaries with majority ownership

Affiliates

(9)

Telkom’s Business Portfolio – T.I.M.E

(Telecommunication, Information, Media, Edutainment)

POTS

FWA

Mobile/Cellular

Broadband

Network Services

Tower 1 2 3 5 6 7

International Services

4

Premise Integration Services

E‐Payment

Media: PayTV& FTA

Content/Portal

VAS, Managed App & Performance (IT Outsourcing)

8

9

10

12

13

IT enabler Services (ITeS): Business Process Outsourcing (BPO)

11

T

elecommunication

T

elecommunication

I

nformationnformation

M

ediaedia &&

E

dutainmentdutainment

Consumer

SME

Large

Enterprise

International

Investment

Wholesale

Retail

OLO

(other

local

operators)

(10)

Telco

Industry

in

(11)

Telco Penetration

Total

Industry ± 8.3 mn ± 29 mn ± 196 mn ± 8.2 mn

Cellular

(full mobility)

Fixed Wireline

Fixed Wireless

(limited mobility)

Broadband

Penetration 

4%

Penetration



82%

Source : internal market research as of Sept 30, 2010 Note : Indonesia population 2010: approx. 237.6 million

Penetration 

12%

Telkom

Market Share 

99%



57%



47%



70%

…and Indonesia’s wireless penetrationis now approaching a saturation stage …

(12)

Business

Results

(13)

Cellular Business

9M09

9M10

Growth (%)

Cellular

Subscribers (mn) 79.8 93.1  17%

BTS (unit) 29,781 35,316  19%

MoU(Bnminutes) 101 93 8%

ARPU –blended (Rp’000) 48 43  10%

Revenue (RpBn) *) 21,504 22,057 3%

We are the leader in the cellular/full mobility market. As of September 30, 2010,

our market share was around

47%

.

(14)

14

Broadband Services

9M09

9M10 Growth

(%)

Fixed

broadband/Speedy:

Subscribers (‘000) 979 1,530 56%

Revenue (RpBn) 1,850 2,662 44%

Mobile

broadband/Flash:

User (‘000) 1,375 4,278 211%

Revenue (RpBn) 341 684 101%

Speedy and Flash remained the market leader in broadband businesses with total market share of approximately

80%

and

64%

Our broadband service showed strong growth,with total 1.5 Mn sub. in fixed

(15)

Fixed Line Business

9M09

9M10

Growth

(%)

Fixed

Wireline

Line in Service/LIS (mn) 8.7 8.3 4%

ARPU (‘000) 112 105 6%

Fixed

Wireless

/

Flexi

Subscribers (mn) 14.9 16.8  13%

BTS (unit) 5,296 5,580 5%

MoU(Bn minutes) 12 9  26%

ARPU – blended (Rp’000) 23 17  26%

Fixed

Line

Revenues

(Rp

Bn)

*) 10,806 9,854 9%

Note: *)Fixed Line revenue including monthly charge, voice and featuresrevenues.

We continue

defending the decline in fixed

wirelinevoice

revenue through

flat tariff program

(16)

16

Financial Highlights

(in

Tn

Rp

)

9M09

9M10

Growth YoY

(%)

Balance Sheet

Total Assets

95.3

100.1

 5%

Total Liabilities

48.0

46.4

 3%

Total Equity

37.5

42.7

14%

Profit & Loss Statement

*)

Operating Revenues

50.2

52.1

 3.9%

Operating Expenses

32.2

34.9

 8.4%

EBITDA

28.2

 0.3%

EBITDA Margin (%)

56.1

54.2

 1.9%

Net Income

9.3

8.9

 3.9%

Net Income/Share (Rp)

473

454

 3.9%

(17)

43%

27%

22% 42%

30%

19%

2% 2%

5%

2% 2%

4%

Cellular Data,

Internet & IT

Fixed Line Intercon Netw ork Other

9M09 9M10

Income Statement

(1/2)

21.5 22.1

13.8 15.8

10.8 9.9

2.4 2.3

0.9 0.9 0.8 1.2

Note: In accordance with the change in accounting treatment fromnet to gross (PPSAKNo.1) in 2010, we present outgoing interconnection revenue on grossbasis as part of operating revenues. The 2009 presentation is reclassified to conform with the current standard.

Revenue contribution to total revenues

Total revenues =

Rp52.1

Tn

(in Rptrillion)

In 9M10, Data, Internet & IT services revenues contributed 30%30%to total revenues

(18)

18

3 4 % _{3 2 %}

17 %

3 7 %

3 2 %

16 % 7 % 7 % 6 % 5 % _{5 %} 5 %

O&M D ep r eciat io n Per so nnel Int er co n G&A M ar ket ing

9M09

9M10

Income Statement

(2/2)

Expense contribution to total expenses

10.9 12.9

10.2 11.0

5.6 5.4

2.2 2.3 _1.8 _1.7 _1.5 _1.6

Total expenses =

Rp34.9

Tn

(in Rptrillion)

(19)

Capital Expenditure (Capex)

Telkom

Rp2,729

Bn

TELKOMSEL

Rp6,416

Bn

Other subsidiaries

Rp471

Bn

(5%)

34% 28% 63% 67%

9M09

9M10

9,616

12,796

Total (Rp Bn)

Capacity Others Others Legacy 4% 32% 49% 83% 19% 13% 9M09 9M10 55% 49% 40% 43% 8% 5% New Wave & infrastructure

Coverage & Quality

Programs Allocation

Telkom Capex (Rp Bn)

Telkomsel Capex (Rp Bn)

4,399

2,729

8,048

(20)

Contact Address :

Investor Relations

GrhaCitra Caraka5th_floor

Jl. Jend. GatotSubrotoKav. 52 Jakarta, 12710

Indonesia

Tel : +62‐21‐5215109 Fax : +62‐21‐5220500

Email : investor@telkom.co.id Website: www.telkom.co.id