9M14 Conference Call Presentation Final

(1)

PT

Telekomunikasi

Indonesia,

Tbk.

9M14

Results

(2)

Disclaimer

This document may contain forward

‐

looking statement within the meaning of safe

‐

harbor.

Actual results could differ materially from projections, estimations or

expectations. These may involve risk and uncertainty, and may cause actual results

and development to differ

substantially from those expressed or implied in the

statements. The company does not guarantee that any action, which may have been

taken in reliance of this document will bring specific results as expected.

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Content

1 Telkom in Brief

1. Telkom

in

Brief

(4)

T lk

i B i f

Telkom in Brief

(5)

Business and Customer Portfolio

Business

and

Customer

Portfolio

Telecommunication

Information

Media

&

Edutainment

M di P TV & FTA POTS

FWA

Mobile / Cellular

International Services

Premise Integration Services

VA, Managed App & Performance/ITO

E‐Payment

Media : Pay TV & FTA

Content / Portal

International Services

Broadband

Network Services

T

y

ITeS (BPO, KPO)

Tower

Retail

Wholesale

Personal

Consumer/Home

SME

Enterprise

OLO

(

Other

Licensed

Operators

)

S

er

vice

International

(6)

Telkom

and

Subsidiaries

(7)

Current Ownership

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%

Public

47.4%

Treasury

Shares

2.6%

Total Shares

Market Capitalization at IDX

Total

Shares

100,799,996,400

shares

Market

Capitalization

at

IDX

Rp293.8Tn

TOP

3

(8)

Financial and Operational

Res lts

Results

(9)

Highlights

Well

maintained

strong

financial

results

Consol

Revenue

grew

7.1%

YoY

to

Rp65.8tn

Tsel

Revenue

grew

by

10.0%

YoY

to

Rp48.4tn

Well

maintained

strong

financial

results

Consol

Revenue

grew

7.1%

YoY

to

Rp65.8tn

Tsel

Revenue

grew

by

10.0%

YoY

to

Rp48.4tn

Gaining

remarkable

subscribers

growth

Broadband

users

grew

31.8%

YoY

to

more

than

29.8mn

*)

Cellular

subscribers

grew

8.9%

YoY

to

139.3mn

Gaining

remarkable

subscribers

growth

Broadband

users

grew

31.8%

YoY

to

more

than

29.8mn

*)

Cellular

subscribers

grew

g

8.9%

YoY

to

139.3mn

*) exclude PAYU

g

*) exclude PAYU

Telkomsel

continues

the

leadership

in

network

quality

and

coverage

Total BTS 83 346

units a 26 9% YoY growth

Telkomsel

continues

the

leadership

in

network

quality

and

coverage

Total BTS 83 346

units a 26 9% YoY growth

Total

BTS

83,346

units,

a

26.9%

YoY

growth

3G

BTS

37,082

units,

a

58.2%

YoY

growth.

New BTS

9M14 13,482

units,

a

18.7%

YoY

growth,

average

±

1,500

BTS/month

Total

BTS

83,346

units,

a

26.9%

YoY

growth

3G

BTS

37,082

units,

a

58.2%

YoY

growth.

New BTS

9M14 13,482

units,

a

18.7%

YoY

growth,

average

±

1,500

BTS/month

(10)

Data Services

Data

Services

Revenues

(Rp

Tn)

Users

(Million)

Mobile Data

Speedy

▲

32.9%

10.0

7 6

▲

14.1%

▲

14.8%

2.9

3.3

Fi d Bb d

▲

8.0%

3 4

3.7

7.6

55.3

63.5

Fixed Bband

9M13

9M14

3.4

3.7

Mobile Data

▲

14.8%

9M13

9M14

10

(11)

Revenues YoY

(

Rp Tn

)

Revenues

YoY

(

Rp

Tn

)

9M13 9M14

▲

7.1

%

▲5.8% ▲15.4%

9.9 10.0 3.3 9.6 7.3 6.4

61.5 65.8 23,665 23,333 25,032

26,915

Cellular SMS Data Comm Oth Others 7,395 2 562 6,770 2 645 9M13 9M14

▼7.5% ▲3.2%

▼8.5%

▲0.1%

Note: “Other” among others consists of CPE, Pay TV, Leased Revenue, Directory

9M13 9M14

3,633 911

2,562 3,636 843

2,645

Cellular voice Fixed line voice Data, Internet, & IT

Interconnection Network Other

Assistance, USO and Modem Sales

(12)

Expenses YoY

(

Rp Tn

)

Expenses

YoY

(

Rp

Tn

)

▲

8.7%

16,606

9M13 9M14

▲17.6%

40.2 43.7

14,115

11,072 12,036

▲3.6%

▲8.7%

6,967

3,636 7,215

3,680

▲1.2%

▲9.9% ▼_0.3%

▼

TOTAL

9M13 9M14

,

2,105 2,398

(96) ,

2,314 2,390

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

▼454.2%

TOTAL

(13)

Cellular

Industry

:

TSEL

Profile

TSEL

Population

Coverage

2G:

± 95%

|

3G:

± 60%

Papua, Maluku, Papua, Maluku, Sulawesi, Kalimantan Sulawesi, Kalimantan

Sumatera Sumatera

CB portion: 29%

Sulawesi, Kalimantan Sulawesi, Kalimantan

CB portion: 22%

Greater Jakarta & Greater Jakarta & West Java

West Java

CB portion: 22% _CBJavaJava_portion: && BaliBali _27%

1. Occupied by 9 players (4 GSM+5 CDMA), telco industry is

Industry

Overview

Subscriber

Market

Share

(Estimated)

1. Occupied by 9 players (4 GSM+5 CDMA), telco industry is mature 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 25% smartphone penetration

44%

56%

TSEL Others

9M13 9M14 Diff.

and 25% smartphone penetration.

3. Tremendous growth in digital business; data traffic grew ‐

(14)

Cellular

:

9M14

Digital

Business

YEAR

‐

ON

‐

YEAR ACHIEVEMENT

Broadband:

+32% 11.1 DIGITAL BUSINESS REVENUE In Million

YEAR ON YEAR

ACHIEVEMENT

In Trillion DATA ENABLED CUSTOMER 155.9 DATA TRAFFIC In PB 63 5 Telkomsel Flash BlackBerry 10.0 8.4 7.6 Broadband 33% 33% 63.4 146% 146% 55.3 63.5 15% 15%

Digital Services:

-Digital Lifestyle - Digital Advertising

- Digital Payment & Mobile Banking

9M‐14

1.1

9M‐13

0.8 28%28%

Digital Services

9M‐13 9M‐14

3G DEVICE 3G BTS 3G BTS

9M‐14

9M‐13

35.4 3G DEVICE CAPABLE In Million 10.0 8.0 3G BTS ROLL OUT In Thousand 37.1 3G BTS ON AIR In Thousand 20.0 76%

76% 25%25%

23.4

58% 58%

14

9M‐14

(15)

Cellular:

9M14

Solid

Revenue

YEAR ON YEAR ACHIEVEMENT

+10%

48.4 44.0

REVENUE

YEAR

‐

ON

‐

YEAR

ACHIEVEMENT

In Trillion

CAPEX TO REVENUE

32% 32%

EBITDA NET INCOME

In Trillion In Trillion 26.8 25.4 13 8 13 1 37.3 11.1 35.6 8.4

9M‐14

20%

9M‐13

19% 1ppt 1ppt 5% 5% Legacy Digital Business 32% 32%

9M 13 9M 14 9M‐14

13.8

9M‐13

13.1

5% 5% 6%

6%

9M‐14

9M‐13

I Milli I Th d

9M‐14

9M‐13

TOTAL ASSET BTS ROLL OUT BTS ON AIR

I Th d

CUSTOMER

I T illi

Margin 55% 58% Margin 29% 30%

9M‐13 9M‐14 9M‐13 9M‐14

8.0

+19%

13.5

10.0

11.4

In Million In Thousand In Thousand

+27% 83.3 37.1 65.7 23.4 In Trillion 3G 3G 25%

25% 58%58%

66.6 74.0 11% 11% 139.3 127.9 9% 9%

9M‐14

3.4

9M‐13

3.3

9M‐14

46.3

9M‐13

42.2 2G

2G

3%

3% 10%10%

9M‐14

9M‐13

11% 11%

9M‐13 9M‐14

9% 9%

Debt to Equity Ratio (DER)*: _F _C _{h Fl}

Debt to Equity Ratio (DER)*:

(16)

Corporate Actions in 9M14

Corporate

Actions

in

9M14

•

PINS Indonesia Acquire 25% of Tiphone Shares

•

PINS

Indonesia

Acquire

25%

of

Tiphone Shares

•

Telkom

Redirecting

Flexi’s Customers

to

Telkomsel

•

Telkom and Telstra formed a JV for Network

Telkom

and

Telstra

formed

a

JV

for

Network

Application

Services

(NAS)

A

i iti

f M j it Sh

h ldi

i

•

Acquisition

of

Majority

Shareholding

in

Contact

Centre

Australia

(CCA)

(17)

2014

Company

Outlooks

Continue

to

Deliver

Value

to

Shareholders



In

line

with

or

slightly

above

the

market

for

both

TLKM Consolidated

and

Telkomsel

Revenue

Growth



Slight

decline

for

both

TLKM

Consolidated

d f

T lk

l

EBITDA

Margin

and for

Telkomsel



Group (Consolidated): 20

‐

25% over Revenue

C



Group

(Consolidated):

20

‐

25%

over

Revenue



Allocation:



Telkomsel:

70%



TLKM & Others: 30%

Capex

(18)

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