TLKM Corp 9M16 Earnings Call With Melon

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Corporate Presentation

9M16

PT Telkom Indonesia (Persero) Tbk

November 2016

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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.

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TELKOM Introduction

9M16 Financial & Operational Results

Company Guidance 2016

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Board of Directors

CEO TELKOM GROUP

ALEX J. SINAGA

Director

INDRA UTOYO

Director

HERDI R. HARMAN

Director

HARRY M. ZEN

4 Director

ABDUS SOMAD ARIEF

Director

DIAN RACHMAWAN

Director

HONESTI BASYIR

CEO Telkomsel

RIRIEK ADRIANSYAH

Director

HERI SUPRIADI

Director

EDWARD YING SIEW HENG

Director

ALISTAIR D JOHNSTON

Director

MAS’UD KHAMID

Director

SUKARDI SILALAHI

Director

PRIYANTONO RUDITO

Director

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TELKOM Introduction

9M16 Financial & Operational Results

Company Guidance 2016

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9M16 Performance Highlights

continued strong momentum in 9M16 by posting triple

double-digit growth in , , and of ,

,and YoY respectively.

! " # $ " sharply increased by YoY. This

segment contributed to total revenue.

%& grew moderately by with manageable O&M charges.

delivered another triple double-digit growth in ,

, and of ' ' , ( , and YoY respectively.

installed ! new BTSs, of which around ( are 3G/4G BTS to enhance mobile broadband experience.

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Strong Revenue Growth, Driven by

Data Business

38.6

23.7

' '

)

YoY

(Rp Trillion)

23.7

5.9

3.4 4.1

)

Cellular Voice and SMS

Data, Internet & IT Services

Fixed Line Voice

Interconnection Network & Other Telco Services

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Strong EBITDA & Net Income Growth

with Healthy Margins

YoY

(Rp Trillion)

YoY

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Moderate Growth in Expenses

21.4

13.5 '

%&

YoY

(Rp Trillion)

9.2

2.7 _2.2 3.3

13.5

)

Operation, Mai ntenance & Telco Services

Personnel Interconnection Marketing General & Administrative

Depreciation & Amortization

9M16 9M15

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Excellent Operational Results

IndiHome subs reached 1,524K in 9M16, increased 124.8% YoY Fixed broadband users (incl. non-IndiHome) increased 15.4% YoY Total customers: 163.7mn, increased

10.2% YoY.

3G/4G-capable device users: 76.4 mn (+37.3% YoY). 11.9 mn has enjoyed 4G. Mobile data payload jumped 84.7% YoY to 631,269 TB.

!

10 IndiHome) increased 15.4% YoY

to 4.3 Million to 631,269 TB.

Added 20,808 new BTS (90% 3G/4G). Total BTS 124,097 (59% 3G/4G).

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+41% 22.2 2.1 20.1 15.7 1.5 14.3 DIGITAL BUSINESS REVENUE In Million

YEAR-ON-YEAR ACHIEVEMENT

In Trillion DATA USER 40% 40% Digital Services Broadband 41% 41% 616.5 333.7 DATA TRAFFIC 85% 85% In PB Broadband: Telkomsel Flash BlackBerry Digital Services: - Digital Lifestyle - Digital Advertising

76.7 67.9

13% 13%

Engine of growth and accounted for 35% of Total Revenues

Telkomsel : Continue to Focus on Digital Business

9M16 2.1 9M15

1.5 40%40%

Services 9M16 9M15 9M16 76.4 9M15 55.6 3G/4G CAPABLE DEVICE 37% 37% In Million 9M16 9M15

3G & 4G BTS ROLL OUT

In Thousand

3G & 4G BTS ON AIR

In Thousand

- Digital Advertising

- Digital Payment & Mobile Banking - M2M Business

9M16 9M15 3G 4G 18.8 15.5 3.3 13.2 12.2 1.0 27% 27% 3G 4G 73.7 68.7 5.0 52.3 51.1 1.2 9M16 9M15 34% 34% 11 223% 223% 321% 321%

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Strong Enterprise & Wholesale Business

! "#!

!!

$ % & !

$#

$

' ( )

% !

Implementation of IT-based public services system

&

!

Smart City System by TELKOM including Surabaya, Bandung

Delivers fixed line services to corporate, SMEs, and

government

Corporate Government

*+

!

"#!

!!

To serve other

licensed operators in Indonesia

12 including Surabaya, Bandung

& Bogor Corporate

Customers

SME Customers

Government institution

,- !

total bandwidth in service (integrated IT Solutions)

64%

National market share (Traffic)

(13)

Superior Network

.

fiber-based homes passed IndiHome 3P customers

.

!/

data center facility area

Finalizing Jurong data center ( 20,000 sqm facility area)

$ *+ *, *)

17,800 km from Dumai, Indonesia -Marseille, France

Expected completion Q4 2016

$ *-$

14,400 km from Manado, Indonesia

-13

.

existing nationwide fiber-based backbone network Manado, Indonesia

-California, USA

Expected completion Q3 2017 ..

Indonesia Global Gateway Connect ME-WE 5, SEA-US and our domestic network

0 $

replacing Telkom-2 42 active trp, 24 std band trp, 8 extended C-band trp & 10 Ku-C-band trp.

expected launch Q1/2017

.

additional fiber-based backbone in 2016 - 2018

0

replacing Telkom-1 48 std C-band trp, 12 extended C-band trp expected launch Q3/2018

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Major Development in 3Q16

Telkom acquired 49% stake in Melon Indonesia from SK Planet. Melon has > 5 Million song catalogues to enrich digital contents.

/0 1 "

2 " "

On September 9, 2016, Mr. Muhammad Awaluddin was appointed as President Director of PT Angkasa Pura II (Persero).

$ " 3

+4 "

Telin Myanmar awarded license for ISP, private line voice/data services and value added services.

(15)

TELKOM in Introduction

9M16 Operational & Financial Results

Company Guidance 2016

(16)

2016 Guidance

." 5 0

+ "1 / 6 7

To grow better than market rate in FY16 by

continued effort in growing digital business

To slightly decline in line with continued broadband infrastructure development and revenue shift towards digital business

Around 25% of revenue with focus on broadband infrastructure

1 5 "

" %&

1 -2

"#!

!!

2 % 2

3

4 !

$

)

"#!

!! , 5 +

(17)

Thank You

PT Telkom Indonesia (Persero) Tbk

October 2016

Thank You

(1)

Strong Enterprise & Wholesale Business

! "#!

!!

$ % & !

$#

$

' ( )

% !

Implementation of IT-based

public services system

&

!

Smart City System by TELKOM including Surabaya, Bandung

Delivers fixed line services to

corporate, SMEs, and

government

Corporate

Government

*+

!

"#!

!!

To serve other

licensed operators in

Indonesia

12 including Surabaya, Bandung

& Bogor

Corporate

Customers

SME Customers

Government

institution

,- !

total bandwidth in service (integrated IT Solutions)

64%

National market share (Traffic)

(2)

Superior Network

.

fiber-based homes passed IndiHome 3P customers

.

!/

data center facility area

Finalizing Jurong data center ( 20,000 sqm facility area)

$ *+ *, *)

17,800 km from Dumai, Indonesia -Marseille, France

Expected completion Q4 2016

$ *-$

14,400 km from Manado, Indonesia

-13

.

existing nationwide fiber-based backbone network

Manado, Indonesia -California, USA

Expected completion Q3 2017

Indonesia Global Gateway Connect ME-WE 5, SEA-US and our domestic network

0 $

replacing Telkom-2 42 active trp, 24 std band trp, 8 extended C-band trp & 10 Ku-C-band trp.

expected launch Q1/2017

.

additional fiber-based backbone in 2016 - 2018

0

replacing Telkom-1 48 std C-band trp, 12 extended C-band trp expected launch Q3/2018

(3)

Major Development in 3Q16

+

Telkom acquired 49% stake in Melon

Indonesia from SK Planet. Melon has

> 5 Million song catalogues to enrich

digital contents.

/0

1 "

2 "

On September 9, 2016,

Mr. Muhammad Awaluddin

was appointed as President

Director of PT Angkasa Pura

II (Persero).

&&

$ "

3 +4

"

Telin Myanmar awarded

license for ISP, private line

voice/data services and

value added services.

(4)

TELKOM in Introduction

9M16 Operational & Financial Results

Company Guidance 2016

(5)

2016 Guidance

." 5 0

#

+ "1

/ 6 7

To grow better

than market rate

in FY16 by

continued effort

in growing digital

business

To slightly decline in line

with continued broadband

infrastructure development

and revenue shift towards

digital business

Around 25% of revenue

with focus on broadband

infrastructure

1 5 "

"

%&

1 -2

"#!

!!

2 % 2

3

4 !

$

)

"#!

!! , 5 +

6)7 89 ,96

(6)

Thank You

PT Telkom Indonesia (Persero) Tbk

October 2016

Thank You