Corp Presentation Tlkm 1Q16

(1)

Corporate Presentation

Corporate

Presentation

1Q16 Re sult s

PT

Telkom

Indonesia

(Persero)

Tbk

(2)

Disclaimer

(3)

TELKOM

in

Brief

TELKOM

in

Brief

1Q16 Financial

&

Operational

Results

1Q16 Financial

&

Operational

Results

(4)

Telkom

and

Subsidiaries

Government Public

5 2 .6% 4 7 .4%

M obile

Business

M obile

Business

T T

I nt e rna t iona l

Business

I nt e rna t iona l

Business

T

T _{I nfra st ruc t ure}

Business

I nfra st ruc t ure

Business

T T

M ult im e dia

Business

M ult im e dia

Business

I M E

Hong Kong Singapore

Timor Leste Malaysia

Kingdom of Saudi Arabia

Myanmar

Note:

T: Telecommunication

Affiliation

(5)

Telkom

Group

Portfolios

6 produc t por t folios with 5 Cust om e r Fa c ing U nit s (CFU)

M obile

CFU

 Mobile Legacy  Fixed Voice  Wholesale ‐  Satellites

6

5

Digit a l

Se rvic e s

1

g y

 Mobile Broadbandt

1

2

3

T T

4

 Fixed Broadbandt

Interconnection

 International Businest

 Towerst

Produc t

Portfolios

Cust om e r

Facing Units

CFU

Ent e rprise

CFU

2

M obile

Se rvic e s

1

Fix e d Se rvic e s

2

I nt e rc onne c t ’ & I nt ’l T ra ffic

3

I CT Pla t form

 Enterprise

Sm a rt Ena ble rs

 Payments

N e t w ork I nfra st ruc t ure

4

Consum e r

CFU

3

Ent e rprise Digit a l

 Enterprise Connectivity

 IT Services

 Data Center and Cloud

 BPO

 Devices/Hardware

5

II  Payments

 Digital Advertising

 Big Data & Other Smart Enablers

Whole sa le / I nt e rna t iona l

4

Digit a l _ _{Devices/Hardware}

Consum e r Digit a l

6

M E M E

 e‐Commerce

 Video/TV

 Mobile Digital (e.g., Games, Music)

CFU

(6)

Share Ownership

Government

52.6%

Public

47.4%

Treasury

Stock

2.6 Bn sha re s

Total Shares

100 799 996 400

shares

Telkom Indonesia is listed at

Indonesia Stock Exchange (Bloomberg: TLKM IJ)

and New York Stock Exchange(TLK US)

100,799,996,400

shares

Market Capitalization

Rp

348

Tn (USD

26 4

Bn)*

and New York Stock Exchange(TLK US)

Rp

348

Tn (USD

26.4

Bn)*

(7)

TELKOM

in

Brief

TELKOM

in

Brief

1Q16

Financial

&

Operational

Results

1Q16

Financial

&

Operational

Results

(8)

1Q16

Performance

Highlights



TLKM

recorded

a

remarkable

results

in

1Q16.

Triple

‐

double

‐

digit growth in

Reve nue EBI T DA

d

N e t I nc om e

f

1 6 6 % 1 8 8 %

d

Reve nue , EBI T DA

,

and

N e t I nc om e

of

1 6 .6 %

,

1 8 .8 %

,

and

2 0 .3 %

YoY respectively.



Healthy

profitability

with

EBI T DA M a rgin

of

5 3 .2 %

and

N e t

I nc om e M a rgin

of

1 6 .7 %



Da t a , I nt e r ne t , & I T Se r vic e (ex clude SM S)

remained the

T lk

l

b il

7 0 0 0

BTS d i

1Q16



Da t a , I nt e r ne t , & I T Se r vic e (ex clude SM S)

remained

the

biggest

contributor

with

3 7 .4 %

of

revenue,

increased

4 5 .1 %

YoY.



Te lkom se l

built

ove r 7 ,0 0 0

new

BTSs

during

1Q16.



Around

9 0 %

of

new

BTSs

are

3G/4G

BTS to enhance

mobile

broadband

(9)

Strong

Revenue

Growth,

Driven

by

D t B

i

Data

Business

Reve nue YoY

(Rp Trillion)

2 7 .5

(Rp Trillion)

10 3

45.1%

5.0%

2 3 .6

7.1

8.5

10.3

8.9

15.4%  _1Q15



16.6%

3.4

2.0

4.0

1.9

 %

3.8%

7.0% __4.7%

 1Q15

 1Q16

2.0

1.4 _1.1

1.9

1.3 1.1

Data, Internet & IT Service (Excl. SMS)

Cellular Voice SMS Fixed Line Voice Network and Other Telco Services

(10)

Strong

EBITDA

&

Net

Income

Growth with

Healthy Margins

Healthy

Margins

EBI T DA YoY

(Rp Trillion)

1 4 .7

(Rp Trillion)

1 2 .3



18.8%

4 .6

N e t I nc om e YoY

(Rp Trillion)

3 .8



20.3%

52.2% 53.2%

Margin

Margin

16.2% 16.7%

(11)

Increased

Operating

Expenses in

line

with

Infrastructure Development

1 6 2

1 8 .0

Infrastructure

Development

Ex pe nse s YoY

(Rp Trillion) _{1 6 .2}

(Rp Trillion)

7 7

22.3%

6.3

5.1

7.7

4 4

13.6%

29.5%

 1Q15

 1Q16



11.1%

2.3

4.4

3.0

9.1%

 %

26.1%

26.8%

1.1 _0.8 _0.7 _0.8 _1.0 _0.7

(12)

Excellent Operational

Results

Te lkom se l Ope ra t iona l

 Total customers: 153.6 mn, increased 8.6% YoY.

 3G/4G‐capable device users: 64.5 mn (+47.5% YoY).

 Mobile data payload jumped 89.6% YoY to 169,845 TB.

 3.1 mn customers changed to USIM to enjoy 4G LTE.

 Added 7,223 new BTS in 1Q16, 90% are 3G/4G BTS.

T ELKOM Ope ra t iona l

 IndiHome subs reached 1.35 Million in 1Q16

 Fixed broadband users (incl non‐IndiHome)

(13)

Another triple double digit growth in Revenues EBITDA and Net Income

Telkomsel: Sustained Strong Performance

+18% REVENUES

YEAR-ON-YEAR ACHIEVEMENT

In Trillion CAPEX PAID EBITDA NET INCOME

In Trillion

In Trillion In Trillion

Another triple double-digit growth in Revenues, EBITDA and Net Income

18%

20.2

6.9

17.1

4.6 2.8 2.3

PAID Digital Business 49% 49% 11.7 9.2 _6.5 4.9 34% 34% 27% 27% --19%19% 1Q16 13.3 1Q15 12.5 1Q16 1Q15 6 6%% Legacy Margin 58% 54% Margin 32% 28% 1Q16

1Q15 1Q15 1Q16

+41%

7.2

In Million In Thousand

TOTAL ASSET BTS ROLL OUT BTS ON AIR

In Thousand

+22%

110.5 CUSTOMER

In Trillion

141 5 153.6 4G

4.1 2.4 5.1 3.9 0.7 0.9 49 1 57.2 4.2 90.6 47 0 42.7 4 4%% 34% 34% % % 93.9 82.9 13% 13% 141.5 9 9%% 3G 4G 3G 2G 4G 267% 267% 394% 394% 0.7 0.6 49.1 47.0 2

24%4% 2G 55%%

(14)

Engine of growth with increased contribution that already accounted 34% of Total Revenues

Telkomsel: Continued to Focus on Digital Business

+49% DIGITAL BUSINESS REVENUE In Million

YEAR-ON-YEAR ACHIEVEMENT

In Trillion

DATA USER DATA TRAFFIC

In PB Broadband: +49% 6.9 6.3 4.6 Broadband 48% 48% 169.8 89.6 Telkomsel Flash BlackBerry 71.7 63.9 12% 12% 1Q16 0.6 1Q15 0.4 4.2 51% 51% Digital Services Broadband 1Q16 1Q15 90%

90% Digital Services: - Digital Lifestyle - Digital Advertising

- Digital Payment & Mobile Banking - M2M 1Q16 1Q15 12% 12% 64 5 3G/4G CAPABLE DEVICE In Million

3G & 4G BTS ROLL OUT

In Thousand

3G & 4G BTS ON AIR In Thousand 6 5 61.4 4.2 394% 394% 64.5 43.7 48% 48% 4G 6.5 4.1 2.4 4.6 3.9 0.7

3G 44%%

3G 4G 43.6 42.7 57.2 0.9 34% 34% 267% 267% 394% 394% 1Q16

(15)

Progress in

1Q16

 10 Mnfiber‐based homes passed

id-Ac c e ss

True

AGM S ke ypoint s:

i id

d

homes passed

 1.35 Mn IndiHome 3P customers

82 200 k ti id

id Ri

Broadband Access



Dividend:



60%

pay

out

(50%

Regular

+

10%

Special).



Recording date May 4 2016

 82,200 km nationwide

fiber‐based backbone network

id-Ring

Nationwide Broadband Backbone



Recording

date

May

4,

2016.



Payment

date

May

26,

2016.



New

CFO

Mr Harry

M.

Zen

I nt e r na t iona l Busine ss

Convergence Digital Innovation

replacing

Mr Heri

Sunaryadi

 To launch TELKOM‐3

T ELKOM ’s Sa t e llit e

 Acquisition of GTA Teleguam still under evaluation of US Authorities

I nt e r na t iona l Busine ss

satellite

 To prepare TELKOM‐4 satellite.

Authorities

T ELKOM -3

4Q‐2016

T ELKOM -4

(16)

TELKOM

in

Brief

TELKOM

in

Brief

1Q16 Operational

&

Financial

Results

1Q16 Operational

&

Financial

Results

(17)

2016

Guidance

Reve nue Grow t h

To grow better than market rate in FY16 by continued effort in growing digital business

EBI T DA & N e t I nc om e M a rgins

To slightly decline in line with continued broadband infrastructure development both in mobile and fixed line businesses

22% to 25% of revenue with focus on broadband infrastructure

CAPEX

22% to 25% of revenue with focus on broadband infrastructure

• 60% ‐65% for mobile‐related business

• +/‐ 25% for fixed broadband‐related business

• The balance for other businesses

Ma in Pro g ra ms

M & A Aspirat ion To Enhance and increase digital business. Guidelines: 80% is digital /

new wave portion of inorganic programs.

g

Te lkom se l I ndone sia Digit a l N e t w ork I nt e r na t iona l Ex pa nsion

Le a ding M obile

Drive Digit a l H om e

Sm a r t

I nt e r na t iona l

g

Digit a l Busine ss

g

& Ent e r prise

I nt e r na t iona l

(18)

Thank

You

Thank

You

PT Telkom Indonesia (Persero) Tbk