Telkom Corporate Presentation Investor Summit

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PT Telekomunikasi Indonesia, Tbk.

Investor Summit 2014

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Disclaimer

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Financial and Operational Results

02

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Business and Customer Portfolio

Telecommunication

POTS

FWA

Mobile / Cellular

International Services

Broadband

Network Services

Tower

Information

Premise Integration Services

VA, Managed App & Performance/ITO

E-Payment

ITeS (BPO, KPO)

Media & Edutainment

Media : Pay TV & FTA

Content / Portal

Retail

Wholesale

International

Personal

Consumer/Home

SME

Enterprise

OLO ( Other Licensed Operators )

S

e

rv

ic

e

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Tot a l Sha re s

100,799,996,400

shares

M a rke t Ca pit a liza t ion a t I DX

To p 5

Rp 248.5Tn

*

Current Ownership

Telkom Indonesia is listed at Indonesia Stock Exchange (TLKM IJ) and New York Stock Exchange (TLK US)

Public

47.4%

Government

52.6%

*) as of June 30, 2014

Treasury Shares

2.6%

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Telkom 2014 Main Focus

Supporting Cellular

Business

Developing Data/Broadband

Infrastructure

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Highlights

Well maintained strong financial results

Consol Revenue grew 8.4% YoY to Rp43.5tn Tsel Revenue grew by 10.0% YoY to Rp31.3tn

Gaining remarkable subscribers growth

Broadband users grew 41.8% YoY to more than 28.6mn*)

Cellular subscribers grew 9.8% YoY to 137.4mn

*) exclude PAYU

Telkomsel continues the leadership in network quality and coverage

Total BTS 79,560 units, a 27.9% YoY growth 3G BTS 34,274 units, a 64.6% YoY growth.

New BTS 1H14 9,696 units, a 22.3% YoY growth, average >1,600

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Telkom Achievements

REVENUE

In Trillion

EBITDA NET INCOME

40.2 43.5 20.5 22.3 7.1 7.4

Margin

51.0% 51.3%

1H13 1H14 1H13 1H14 1H13 1H14

8.4%

9.1%

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Mobile Data Speedy

Data Services

Revenues (Rp Tn)

Users (Mn)

Fixed Bband

Mobile Data

15.6%

22.3%

4.8

21.9%

51.8

63.3

2.8

3.2

33.6%

1H13 1H14

8.1%

6.4

2.2

2.4

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1. Mature industry with estimated 130% SIM penetration (± 75% population-based penetration). Relatively stable competition in legacy businesses.

2. Early stage in data business with around 50% data users and 23% smartphone penetration. Competition is relatively intense. 3. Tremendous growth in digital

business

Revenue Market Share

Industry Overview

Source: Company’s Data

Tsel Population

Coverage 2G: ± 95% | 3G: ± 60%

Subscriber Market Share

Source: Company’s Data

53%

47%

TSEL Others

1H13 1H14 diff

TSEL 51% 53% 2ppt

Others 49% 47% -2ppt

1H13 1H14 diff

TSEL 40% 44% 4ppt

Others 60% 56% -4ppt

44%

56%

TSEL Others Sumatera

CB portion: 29%

Greater Jakarta & West Java

CB portion: 22% Java & Bali _{CB portion: 27%}

Papua, Maluku, Sulawesi, Kalimantan

CB portion: 22%

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Cellular: 1H14 Solid Revenue Growth

1H-14 31.3 24.3 7.0 1H-13 28.5 23.2 5.3 +10% REVENUE +22% 2.5 1H-14 7.9 5.4 7.2 9.7 2.5 1H-13

In Million In Thousand

YEAR-ON-YEAR ACHIEVEMENT

In Trillion 18% 1H-14 19% 1H-13 CAPEX TO REVENUE

TOTAL ASSET BTS ROLL OUT BTS ON AIR

In Thousand +28% 1H-14 79.6 45.3 34.3 1H-13 62.2 41.4 20.8 CUSTOMER In Trillion 3G 2G 3G 2G 1ppt 5% Legacy Digital Business 34% -3% 33% 65% 9%

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Cellular: 1H14 Digital Business as Growth Engine

1H-13 5.3 0.5 4.8 +33% 1H-14 7.0 0.7 6.4 DIGITAL BUSINESS REVENUE In Million

YEAR-ON-YEAR ACHIEVEMENT

In Trillion DATA ENABLED CUSTOMER 29% Digital Services Broadband 34% 1H-14 93.6 1H-13 37.9 DATA TRAFFIC 147% In TB 1H-14 31.2 1H-13 19.9 3G DEVICE CAPABLE 57% In Million 1H-14 7.2 1H-13 5.4 3G BTS ROLL OUT 34% In Thousand 34.3 1H-13 20.8 1H-14 3G BTS ON AIR 65% In Thousand Broadband: Telkomsel Flash BlackBerry Digital Services: -Digital Lifestyle

- Digital Advertising

- Digital Payment & Mobile Banking

63 52

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Legacy Business

Continue exploit voice and SMS through

- Enhanced micro-cluster based pricing

- Segmentation focus on Youth Segment

- Improved loyalty program on high value

customer

Mobile

Broadband

Business

Strengthen mobile broadband by

- Data education

- Pushing smartphone adoption

- Broadband network quality in big cities

Digital Services

Trigger Digital Services on

- Enterprise solution (M2M)

- Mobile Advertising & Mobile Payment

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Continue to Deliver Value to Shareholders



In line with or slightly above the market

for both TLKM Consolidated and

Telkomsel

Revenue Growth

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Slight decline for both TLKM Consolidated and

for Telkomsel

EBITDA Margin

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Group (Consolidated): 20-25% over Revenue

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Allocation:

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Telkomsel: 70%

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TLKM & Others: 30%

Capex

2014 Company Outlooks

ARPU

BTS Roll Out

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Telkomsel: Slightly Increase compare to FY13

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Capital Expenditure

(Rp Tn)

1H14, Total CAPEX Rp12.1 Tn or 27.8% over Revenue

Backbone & Access

Other Subsidiaries

Tower, IT, Media, Interna

6.5 3.9

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Revenues YoY

(Rp Tn)

8.4%

1H13 1H14

Cellular SMS Data Comm Oth Others

15,398 _15,039

5,013

2,355 655 1,700

16,379

17,443

4,570

2,492 ₇₀₆ 1,952

Cellular voice Data, Internet, & IT Fixed line voice Interconnection Network Other

1H13 1H14 6.4% 8.8% 5.8% 14.8% 6.3 4.6 2.2 6.4 6.3 2.4

40.2 43.5

1H13 1H14

16.0%

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Expenses YoY

(Rp Tn)

11.5%

Note: “Other” consist of (gain)on forex – net, Other Income & Expense – net.

TOTAL 23 9,732 6,940 4,605 2,371

1,339 1,638

(311) 10,699

8,163

4,668

2,545

1,455 1,846

(27) O&M D&A Personnel Interconnection Marketing G&A Other

1H13

1H14

9.9%

7.3%

O&M and D&A expense went up which in line with our accelerated network development… 26.3 29.3

1H13 1H14

17.6%

1.4%

8.7% 12.7%