Telkom Corporate Presentation Investor Summit

PT Telekomunikasi Indonesia, Tbk.

Investor Summit 2014

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

Financial and Operational Results

02

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

Since 2009 Telkom expanded its business portfolio into TIMES: Telecommunication, Information, Media & Edutainment, and Service

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%

Telkom 2014 Main Focus

Supporting Cellular

Business

Developing Data/Broadband

Infrastructure

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

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%

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

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%

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%

EBITDA NET INCOME In Trillion In Trillion Margin 55% 56% Margin 28% 30% 17.4 1H-13 16.1 1H-14 1H-14 8.8 1H-13 8.6 3% 8% 1H-14 69 1H-13 60 14% 137 125 1H-14 1H-13 10%

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

1H-13 1H-14 22%

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

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 and

for Telkomsel

EBITDA Margin



Group (Consolidated): 20-25% over Revenue



Allocation:



Telkomsel: 70%



TLKM & Others: 30%

Capex

2014 Company Outlooks

ARPU

BTS Roll Out



Telkomsel: Slightly Increase compare to FY13



Telkomsel: Average 1,000 BTS/month with

75% are 3G

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

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%

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%

Capital Expenditure

(

Rp Tn

)

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

Radio access network

Backbone & Access

Infrastructure

Other

Subsidiaries

Tower, IT, Media, Interna

tional Expansion

18

6.5

3.9

1.7

Revenues YoY

(

Rp Tn

)

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

and Modem Sales

8.4%

1H13

1H14

TOTAL

Cellular SMS Data Comm Oth Others

22

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

Data Internet & IT service (incl SMS) and Cellular voice are the biggest contributor of revenue…

40.2

43.5

1H13 1H14

16.0%

Expenses YoY

(

Rp Tn

)

11.5%

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

TOTAL

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%

26.3

29.3

1H13 1H14

17.6%

1.4%

8.7% 12.7%