TLKM Corporate Presentation 1Q17

(1)

Corporate Presentation

1Q17

Results

PT Telkom Indonesia (Persero) Tbk

(2)

Disclaimer

This document may contain forward-looking statements within the meaning of

safe-harbor. Actual results could differ materially from projections, estimations or

expectations. These may involve risks and uncertainties, 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.

(3)

TELKOM in Brief

1Q17 Financial & Operational Results

(4)

4

Telkom and Subsidiaries

Note:

T: Telecommunication

(5)

Telkom Group Portfolios

5

6

product portfolios

with

5

Customer Facing Units

(CFU)

6

Product Portfolios

5

Customer Facing Units Mobile CFU Digital Services CFU Enterprise CFU Consumer CFU Wholesale/ International CFU

1

2

3

4

5

Mobile Services

n Mobile Legacy

n Mobile Broadbandt

1

Fixed Services

2

Interconnect’ & Int’l Traffic

3

Enterprise Digital ICT Platform n Enterprise Connectivity

n IT Services

n Data Center and Cloud n BPO n Devices/Hardware

5

Consumer Digital

6

ME ME II T T Smart Enablers n Payments

n Digital Advertising

n Big Data & Other Smart Enablers

n e-Commerce

n Video/TV

n Mobile Digital (e.g., Games, Music)

Others n Property

Network Infrastructure

4

n Fixed Voice

n Fixed

Broadbandt

n Wholesale -Interconnection

n International Businest

(6)

Share Ownership

6

Government

52.1%

Public

47.9%

Treasury Stock

1.7 Bn shares

Total Shares

100,799,996,400

shares

Market Capitalization

Rp

445.5

Tn (USD

32.8

Bn)*

Telkom Indonesia is listed at

Indonesia Stock Exchange (Bloomberg: TLKM IJ) and New York Stock Exchange(TLK US)

(7)

Board of Directors

7

Telkomsel

Telkom

CEO Telkomsel

RIRIEK ADRIANSYAH

Director

HERI SUPRIADI

Director

EDWARD YING SIEW HENG

Director

ALISTAIR D JOHNSTON

Director of Consumer

MAS’UD KHAMID

Director

SUKARDI SILALAHI

Director

PRIYANTONO RUDITO

PRESIDENT DIRECTOR

ALEX J. SINAGA

Director of FInance

HARRY M. ZEN

Director of HCM

HERDI R. HARMAN

Director of WINS

ABDUS SOMAD ARIEF

Director of EBIS

DIAN RACHMAWAN

Director

MONTGOMERY HONG

Director of NITS

ZULHEFI ABIDIN

Director of DSP

(8)

TELKOM Introduction

1Q17 Financial & Operational Results

(9)

1Q17 Performance Highlights

Telkom Indonesia

delivered

remarkable results in 1Q17, posting triple

double-digit growth in

Revenue

,

EBITDA

, and

Net Income

of

12.6%

,

14.7%

,and

45.8%

YoY respectively.

Data, Internet & IT Services

sharply increased by

25.4%

YoY.

The segment contributed

41.6%

to total revenue.

Telkomsel

recorded another triple double-digit with

Revenue

grew by

10.4%

,

EBITDA 13.0%

, and

Net Income 17.8%

respectively.

Telkomsel

installed

7,060

new BTSs, all of which are 3G/4G BTSs to

enhance mobile broadband experience.

(10)

Strong EBITDA & Net Income Growth

with Healthy Margins

8

10

EBITDA

YoY

(Rp Trilion)

EBITDA Margin

ì

14.7%

Net Income

YoY

(Rp Trilion)

Net Income Margin

(11)

ì

12.6%

Strong Revenue Growth, Driven by

Data Business

12,9

10,3

1,9

1,1 1,3

13,0 12,9

1,9

1,3

2,0

1Q16 1Q17

ì

12.6%

Revenue

YoY

(Rp Trillion)

Cellular Voice and SMS

ì0.9%

Data, Internet & IT Services

ì25.4%

Fixed Line Voice

î4.1%

Interconnection

ì17.4%

Network & Other Telco Services

ì48.2%

Note: SMS included SMS Banking and SMS advertising 1Q16 1Q17

41.6%

contribution to total revenue (vs 37.4% in 1Q16)

(12)

12

Relatively Low Growth in Expenses

7,7

3,0

0,8 0,8 0,7

4,4

0,7

8,3

3,0

0,7 1,0

1,2

4,8

-0,5

Expenses

YoY

(Rp Trillion)

O & M

ì8.5%

Personnel

î0.7%

Interconnection

î7.3%

Marketing

ì31.0%

G & A

ì74.9%

D & A

ì8.4%

ì

3.1%

Others-net*

î167.1%

*Others-net included Forex loss

(13)

+10% 1Q17 22.3 13.9 8.4 1Q16 20.2 13.3 6.9 REVENUES In Million

YEAR-ON-YEAR ACHIEVEMENT

In Trillion 1Q17 2.8 1Q16 2.3 CAPEX PAID

TOTAL ASSET BTS ON AIR

In Thousand 1Q17 136.1 1Q16 110.5 CUSTOMER In Trillion 4% 4% Legacy Digital

Business 23%23%

EBITDA NET INCOME

In Trillion In Trillion Margin 59% 58% Margin 35% 32% 1Q17 13.2 1Q16 11.7 1Q17 7.7 1Q16 6.5 18% 18% 13% 13% 1Q17 92.9 1Q16 93.9 153.6 1Q17 169.4 1Q16 10% 10% In Trillion

Maintained Strong Performance Momentum during 1Q17

Telkomsel: Performance Highlights

(14)

0.6 6.3 +23% 1Q17 8.4 0.8 7.6 1Q16 6.9 DIGITAL BUSINESS REVENUE In Million

YEAR-ON-YEAR ACHIEVEMENT

In Trillion DATA USER 35% 35% Digital Services Broadband 21% 21% 1Q17 357.4 1Q16 165.9 DATA TRAFFIC 115% 115% In PB 84 65 1Q17 1Q16 3G/4G CAPABLE DEVICE 30% 30% In Million

3G & 4G BTS ON AIR In Thousand Broadband: Telkomsel Flash BlackBerry Digital Services: - Digital Lifestyle

- Digital Banking & Advertising - Mobile Financial Services - Enterprise Digital Services

1Q17 89.6 1Q16 71.7 25% 25%

Continued to Focus on Digital Business

3G 4G 86.3 75.2 11.1 61.4 57.2 4.2 1Q17 1Q16 31% 31%

Telkomsel: Performance Highlights

14 164%

(15)

15

Excellent Operational Results

n IndiHome subs reached 1.78 Mn increased

31.7% YoY

n More content, added HOOQ video

streaming platform.

n ARPU in 1Q17 Rp350K (vs Rp341K in 4Q16) n Pursuing new revenue stream from

advertising

n Fixed broadband users (incl. non-IndiHome)

increased 4.8% YoY to 4.4 Mn

n 3G/4G-capable device users: 83.8 mn

(+29.9% YoY). 22 Mn has enjoyed 4G.

n Mobile data payload jumped 115.5%

YoY to 366.0 TB.

n Added 7,060 new BTSs (all are 3G/4G).

Total BTS 136K (63% 3G/4G).

n 4G LTE Service: 239 cities across

Indonesia, 11,130 BTS

n Total customers: 169.4 mn, increased

10.3% YoY.

TELKOM Operational

(16)

Satellite

16

After successfully launched on 15

February 2017, Telkom 3S

Satellite was officially

operated. The satellite is

managed by Telkom Satellite Main

Control Station in Cibinong

Indonesia starting 17 April 2017.

Telkom-4 Satellite is planned to

be launched in 3Q18.

It will carry 48 C-Band and 12

extended C-Band transponders

and cover Southeast Asia and

South Asia region.

(17)

17

Recent Development

70% Dividend Payout

AGMS on April 21, 2017 approved total 70% of dividend

payout, consists of 60% cash dividend or

Rp11,611,211,188,567.60 (inclusive of interim dividend) and

10% special dividend or Rp1,935,200,213,724.32, represents

total dividend per share of Rp136.7465.

(18)

18

Recent Development

Change in Board of Directors and Board of Commissioners

AGMS on April 21, 2017 approved new composition of BoD & BoC:

Board of Directors

President Director : Alex J. Sinaga

Director of Finance : Harry M. Zen

Director of Consumers Service : Mas’ud Khamid

Director of Human Capital Management

: Herdy R. Harman

Director of Network & IT Solution

: Zulhelfi Abidin

Director of Digital & Strategic Portfolio

: David Bangun

Director of Wholesale & International Service

: Abdus Somad Arief

Director of Enterprise & Business Service

: Dian Rachmawan

Board of Commisioners

President Commissioner : Hendri Saparini

Commissioner : Hadiyanto

Commissioner : Devy W. Suradji

Commissioner : Rinaldi Firmansyah

Independent Commissioner : Dolfie Othniel Fredric Palit

Independent Commissioner : Margiyono Darsasumarja

Independent Commissioner : Pamiyati Pamela Johanna Waluyo

(19)

TELKOM in Introduction

1Q17 Operational & Financial Results

(20)

20

2017 Guidance

MAIN PROGRAM

Revenue

Growth

EBITDA &

Net Income Margins

CAPEX

To grow better than industry.

Telco industry is

expected to grow at 8% to 9% in 2017.

To slightly decline as Telkom is shifting towards digital telco company with higher proportion of revenue from digital business and lower revenue portion from legacy (voice and SMS services)

Around 23%-25% of revenue with focus on broadband infrastructures, both mobile and fixed line

Customer Experience Digital Business _Inorganic

Leading Digital

Capability to Provide

Excellent Customer

Experience

Champion of Digital

inHome, Personal,

Enterprise and

Wholesale Services