TLKM 9M13 InvestorSummit2013

PT Telekomunikasi Indonesia, Tbk.

INVESTOR SUMMIT

& CAPITAL MARKET EXPO 2013

Disclaimer

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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01

01

9M13 Result

02

02

Telkom in Brief

9M13 Result

02

02

03

03

Cellular Business

04

04

Fixedline Business

05

01

01

Telkom in Brief

Board of Directors

Board of Directors

President Director and Chief Executive Officer : Arief Yahya Director of Finance & Chief Financial Officer : Honesti Basyir Director of IT Network and Solution & Chief Technology Officer : Rizkan Chandra

Director of Human Capital Management : Priyantono Rudito

Director of Enterprise & Business Service : Muhammad Awaluddin Director of Wholesale & International Service : Ririek Adriansyah

Director of Consumer Service : Sukardi Silalahi

Current Ownership

Current Ownership

Telkom Indonesia is listed at Indonesia Stock Exchange (IDX), New York Stock Exchange (NYSE), London Stock Exchange (LSE) and also Publicly Offering Without Listing (POWL) in Japan.

Public

44446666,,,,9999%

%

%

%

Government

55553333,,,,1111%

%

%

%

Treasury Shares

3333,,,,7777%

%

%

%

100.799.996.400

shares

211,7Tn

*

*) as of September 30, 2013

5

Business and Customer Portfolio

Business and Customer Portfolio

Telecommunication

POTS FWA

Mobile / Cellular International Services Broadband

Information

Premise Integration Services VA, Managed App &

Performance/ITO E-Payment

ITeS (BPO, KPO)

Media & Edutainment

Media : Pay TV & FTA

Content / Portal

Since 2009 Telkom expanded its business portfolio into TIMES:

Telecommunication, Information, Media & Edutainment, and Service

Broadband

Network Services Tower

ITeS (BPO, KPO)

Retail

Wholesale

International

Personal

Consumer/Home

_SME

_Enterprise

OLO ( Other Local Operators )

S

e

rv

ic

Telkom and Subsidiaries

Telkom and Subsidiaries

Consolidated

Unconsolidated

7

Indonesia Telecommunication Industry

Indonesia Telecommunication Industry

Prabayar Pasca Bayar

With 10 operators, Indonesian telecommunication industry is very competitive

9M-2013 Subscriber Market Share

Penetration (SIM Card)

•Total Cell Subs >315 mn •Total BIG 3 Subs: 239.8 mn

56.5M

18%

54.2M

17%

TSEL 127.9 mn

40% XL

58.1 mn 18%

ISAT 53.8 mn

17%

Telkom Customers

Telkom Customers

Telkom is dominating fixed line and cellular market…

02

Highlights

Highlights

Well maintained strong financial results

Consol Revenue

grew 8.2% YoY to Rp61.5tn

Tsel Revenue

grew by 10.4% YoY to Rp44.0tn

Telkom unconsol improve the positive

growth at 1.2% YoY

Well maintained strong financial results

Consol Revenue

grew 8.2% YoY to Rp61.5tn

Tsel Revenue

grew by 10.4% YoY to Rp44.0tn

Telkom unconsol improve the positive

growth at 1.2% YoY

Gaining remarkable subscribers growth

Gaining remarkable subscribers growth

Gaining remarkable subscribers growth

Broadband users

grew 41.8% YoY to more than 22.5mn.

Cellular subscribers

grew 5.3% YoY to 127.9mn

Gaining remarkable subscribers growth

Broadband users

grew 41.8% YoY to more than 22.5mn.

Cellular subscribers

grew 5.3% YoY to 127.9mn

Telkomsel continues the leadership in network quality and coverage

Total BTS

65,653 units, a 28.7% YoY growth

3G BTS

23,443 units, a 74.8% YoY growth.

New BTS 9M13

11,356 units, a 35.5% YoY growth, average >1,000

BTS/month

.

Telkomsel continues the leadership in network quality and coverage

Total BTS

65,653 units, a 28.7% YoY growth

3G BTS

23,443 units, a 74.8% YoY growth.

New BTS 9M13

11,356 units, a 35.5% YoY growth, average >1,000

BTS/month

.

11

Data Services

Data Services

Revenues (Rp Tn)

Users (Mn)

▲

10.5%

4.8

Mobile Data Speedy

▲

36.5%

7.6

9M12

_9M13

9M12

9M13

Fixed Bband

Mobile Data

▲

10.5%

▲

35.8%

▲

9.4%

50.6

55.3

2.1

2.9

▲

7.3%

5.5

Revenues YoY

Revenues YoY

((

Rp Tn

Rp Tn

))

▲

8.2%

9M12 9M13

61.5

22.6

20.1

23.7 _23.3

10.7 9.2 0.2 13.4 9.7 0.2

Data Comm, Internet, IT SMS

Note: “Other” among others consists of CPE, Pay TV, Leased Revenue, Directory Assistance, USO and Modem Sales

9M12 9M13

TOTAL

56.9 8.1

3.1 0.9

2.0 7.6

3.6 _0.9 2.4

Cellular voice Data, Internet, & IT

Fixed line voice Interconnection Network Other SMS

VoIP & e-Business

13 Cellular voice, SMS and data services are the biggest contributor of revenue…

Expenses YoY

Expenses YoY

((

Rp Tn

Rp Tn

))

▲

7.0%

12.8

10.6 14.1

11.1

7.0

9M12

9M13

40.2

Note: “Other” consist of (gain)on forex – net, Other Income & Expense – net. 6.3

3.4

2.2 2.2

0.0 7.0

3.6

2.1 2.4

0.1

O&M D&A Personnel Interconnection Marketing G&A Other 9M12 9M13

37.6

TOTAL

Capital Expenditure

Capital Expenditure

((

Rp Tn

Rp Tn

))

9M13, Total CAPEX Rp12.0 Tn or 13.3% over Revenue

6.8

2.6

2.6

Radio access network

Backbone & Access

Infrastructure

Other Subsidiaries

Tower, IT, Media, Interna

tional Expansion

15 As we are still expanding our broadband infrastructure, Capex spending will be 20-25% of revenue…

03

9M 2013 Continue double digit growth in financial performance

10% 44.0 35.6 8.4 39.9 33.7 6.2

REVENUE EBITDA NET INCOME

9M13 25.2 9M12 22.7 9M13 13.1 9M12 11.7

In IDR Tn

6.8 6.9

CAPEX

11%

11% _12%12%

2% 2% Margin 6 6%% Legacy Digital Business Margin 36% 36%

YoY Performance

In IDR Tn In IDR Tn In IDR Tn

9M13 9M12 128 121 9M13 9M12 35% 9M13 11.4 3.3 8.0 9M12 8.4 4.5 3.9

In Million _{In Thousand}

9M13 9M12

CUSTOMER BASE BTS NEWROLL OUT BTS ON AIR

In Thousand 29% 9M13 65.7 42.2 23.4 9M12 51.0 37.6 13.4 DATA USER In Million 3G 2G 3G 2G 5 5%% Margin 57% 57% Margin 30% 29% 105% 105% --25%25% 75% 75% 1 122%%

Source: 3Q 2013 Management Report Telkomsel

55 51 9M13 9M12 9 9%% 3G 2G 17

Cellular BTS

Cellular BTS

Telkomsel is continuously expanding its coverage and capacity.

Until end of September, 11,356 new BTS deployed

!

!

!

!

"

Key Strategic Focus

Key Strategic Focus

Legacy Business

Continue exploit voice and SMS through

-

Enhanced micro-cluster based pricing

-

Segmentation focus on Youth Segment

-

Improve loyalty program

Mobile

Strengthening mobile broadband on

Mobile

Broadband

Business

Strengthening mobile broadband on

-

Data education

-

Push smartphone growth

-

Broadband Network Quality in big city

Digital Services

Trigger Digital Services on

-

Enterprise solution (M2M)

-

Mobile Advertising & Mobile Payment

-

Aggressive in content and application

04

Roadmap: Indonesia Digital Network 2015

Roadmap: Indonesia Digital Network 2015

High Speed Broadband Access through Optical Fiber Network & Wifi

Indonesia Digital Network

• • •

High Speed Broadband Access through Optical Fiber Network & Wifi

IP-based and Optical Backbone Network

Integrated Next Generation Network for Multi Services & Multi Screen

Id-Ring

Id-Con

•

• ! ! ! ! """" # $# $# $# $

• % &!!!% &!!!% &!!!% &!!! ''''

• (((( )))) )))) ****

• +$+$+$+$ ))))

• +$+$+$+$

21 We expect by end of 2015, 30% of Indonesia household are connected to our broadband services…

05

Continue to Deliver Value to Shareholders

Continue to Deliver Value to Shareholders

In line with or better than the market for

both TLKM Consolidated and Telkomsel

Revenue Growth

Revenue Growth

Stable to slight decline for TLKM

2013 Company Outlooks

2013 Company Outlooks

Stable to slight decline for TLKM

Consolidated and stable for Telkomsel

EBITDA Margin

EBITDA Margin

Group (Consolidated): 20-25% over Revenue

Allocation:

Telkomsel: 60%

TLKM (Unconsol) & Others: 40%

Capex

Capex

Key Strategic Focus

Key Strategic Focus

Legacy Business

Continue exploit voice and SMS through

- Enhanced micro-cluster based pricing

- Segmentation focus on Youth Segment

- Improve loyalty program

Mobile Strengthening mobile broadband on

Mobile

Broadband Business

Strengthening mobile broadband on

- Data education

- Push smartphone growth

- Broadband Network Quality in big city

Digital Services

Trigger Digital Services on

- Enterprise solution (M2M)

- Mobile Advertising & Mobile Payment

- Aggressive in content and application

04

04

Fixedline Business

Roadmap: Indonesia Digital Network 2015

Roadmap: Indonesia Digital Network 2015

High Speed Broadband Access through Optical Fiber Network & Wifi

Indonesia Digital Network

• • •

High Speed Broadband Access through Optical Fiber Network & Wifi

IP-based and Optical Backbone Network

Integrated Next Generation Network for Multi Services & Multi Screen

Id-Ring

Id-Con

•

• ! ! ! ! """" # $# $# $# $

• % &!!!% &!!!% &!!!% &!!! ''''

• (((( )))) )))) ****

• +$+$+$+$ ))))

• +$+$+$+$

21 We expect by end of 2015, 30% of Indonesia household are connected to our broadband services…

05

05

Company Outlook

Continue to Deliver Value to Shareholders

Continue to Deliver Value to Shareholders

In line with or better than the market for both TLKM Consolidated and Telkomsel

Revenue Growth Revenue Growth

Stable to slight decline for TLKM

2013 Company Outlooks

2013 Company Outlooks

Stable to slight decline for TLKM

Consolidated and stable for Telkomsel

EBITDA Margin EBITDA Margin

Group (Consolidated): 20-25% over Revenue Allocation:

Telkomsel: 60%

TLKM (Unconsol) & Others: 40%

Capex Capex