TELKOMs FY15 Conf Call Invitation
Corporate Presentation
FY15
Conference Call
March 8, 2016
1
Disclaimer
This document may contain forward-looking statements within the meaning of safeharbor. 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.
2
Content
TELKOM in Brief
FY15 Financial & Operational Results
Company Guidance 2016
3
Content
TELKOM in Brief
FY15 Financial & Operational Results
Company Guidance 2016
4
Telkom and Subsidiaries
Government
Public
%
Business
%
Business
Business
Business
Note:
: Telecommunication
: Information, Media & Edutainment
Affiliation
Current Ownership
Government
Public
Total Shares
shares
Treasury Shares
Telkom Indonesia is listed at
Indonesia Stock Exchange (Bloomberg: TLKM IJ)
and New York Stock Exchange (Bloomberg: TLK
US)
Market Capitalization at IDX
Rp344.2Tn*
*as of March 4, 2016
6
Content
TELKOM in Brief
9M15Financial
Financial&&Operational
OperationalResults
Results
FY15
Company Guidance 2016
7
FY15 Performance Highlights
recorded strong growth of
(YoY) recorded revenue of over Rp
trillion.
!
#
grew
!
$" YoY to Rp
" Year on Year
trillion.
' '* revenue grew by
" YoY ; mobile digital business jumped + " YoY.
%
+
&
grew by
'
!
( )
. / remained healthy with voice rose
" YoY.
continued its leading network supply with
installed to strengthen mobile broadband experience.
#
Around
" YoY and SMS
$
,- '
" of new BTSs are 3G/4G BTS.
8
FY15 Operational Results
#
01
Total customers: 152.6 mn, increased 8.6% YoY.
3G/4G-capable device users: 61.7 mn (+52.7%).
Mobile data payload jumped 110% to 492 Peta-bytes.
2.2 mn customers changed to USIM to enjoy 4G LTE.
Added 17,869 new BTS in FY15, 90% are 3G/4G BTS.
230
01
IndiHome subs reached 1.1 Million in FY15
Fixed broadband users (incl. non-IndiHome)
increased 17.2 % YoY to 4 million
Fixed line subs increased to 10.3 million (+6.0% YoY)
9
Strong Revenue Growth, Driven by
Data Business
!
YoY
(Rp Trillion)
37.3
34.3
$
32.7
FY14
FY15
23.8
14.0
15.1
8.4
7.8
4.5
Cellular Voice
FY14
FY15
Data Internet & IT
Service (Excl. SMS)
SMS
5.2
4.7
4.3
Fixed Line Voice Network and Other Interconnection
Telco Services
Note: in TSEL, SMS Banking and SMS advertising were recorded in digital services
10
Strong Normalized EBITDA & Net Income
Growth
(Excluding Early Retirement Program)
-
%4 YoY
(Rp Trillion)
5
YoY
(Rp Trillion)
-
%4 6
5
6 , 7
without ERP
, 7
without ERP
FY14
FY15
FY14
FY15
11
Increased Operating Expenses in line with
Infrastructure Development
01
.
)1
YoY
(Rp Trillion)
28.1
22.3
FY14
FY15
18.5
17.1
11.9
9.8
4.0
FY14
4.2
4.9
3.6
3.1
3.3
FY15
12
Telkomsel: Strong Revenue Growth with Healthy
Profitability
YEAR-ON-YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
In Trillion
+15%
76.1
66.3
Digital
Business
15.6
NET INCOME
In Trillion
In Trillion
CAPEX
PAID
42.6
37.2
43% 22.4
22.4
19.4
14.5
15%
Legacy
50.6
6%
FY14
53.7
FY15
TOTAL ASSET
In Trillion
FY14
FY15
Margin
56%
56%
CUSTOMER
In Million
FY14
-10%
FY15
84.1
79.4
152.6
140.6
29%
9%
BTS ROLL OUT
In Thousand
FY14
17.9
1.6 4G
15.6
0.2
11.8
3.6
FY15
FY15
FY15
29%
FY14
BTS ON AIR
In Thousand
+21%
85.4
0.2
38.8
21%
6%
FY14
Margin
+15%
FY14
13.1
14%
103.3
1.8 4G
37% 53.1
3G
14.3 3G
-44%
46.4
2.0 2G
FY15
FY14
4%
48.4
2G
FY15
13
Telkomsel: Continue to Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+43%
Broadband:
492.2
39%
FY14
FY14
FY15
110%
3G & 4G BTS
ROLL OUT
61.7
40.4
Digital Services:
15.9
1.6
4G
3G
21% 14.3
11.8
FY14
FY15
- Digital Lifestyle
- Digital Advertising
- Digital Payment & Mobile Banking
- M2M
3G & 4G BTS
ON AIR
In Thousand
12.0
0.2
53%
FY15
FY14
FY15
In Thousand
In Million
BlackBerry
234.9
2.1
3G/4G CAPABLE
DEVICE
FY14
Telkomsel
Flash
9%
14.1
1.5
73.9
67.9
44% 20.3
Digital
Services
In PB
22.4
15.6
Broadband
DATA TRAFFIC
DATA USER
In Million
FY15
54.9
1.8
4G
39.0
0.2
3G
38.8
FY14
37% 53.1
FY15
14
Accelerating Fixed Line Business
4
.
.1
.
8
8
1 /
, #
By strengthened capacity and capability
of Human Resources as well as improved
business process
subscribers as of
December 2015
%
7
7 .
As of end of Dec 2015 we have
4,800 fiber technicians
More than 60 million households
with growing middle class segments
Very low fixed broadband
penetration (around 6%)
15
Progress in 2015
' 49;' '
94
True
Broadband
Access
10 million fiber-based
homes passed
320 thousand WiFi access
points
Connecting Indonesia to United States
Consortium of 7 operators , expected
completion 4Q17
' 49
9
.
Nationwide
Broadband
Backbone
9
Convergence
Digital
Innovation
81.9 thousand km of
nationwide fiber-based
backbone network
74 thousand square meters of Data
Center
20 thousand square meters of Data
Center in Jurong Malaysia (under
contsruction)
'/
9:
'
'/
Connecting Indonesia to West Europe
Consortium of 22 operators, expected
completion 4Q16
4 <
6
Still under review by
US Authorities
16
Awards & Recognition
8
4,
1
'
/
7 Awards for Telkom from
Dunamis and Business News
Week
>
1
-
?
Brand Finance & SWA Magazine
A
#
.+
4,
&'
!
)
7 =
ASEAN Marketing Summit
' 4
4,
1
Forbes Indonesia
-
National Center for Sustainabiliy
Reporting
7 -
#
Infrasctructure Week 2015
7 =
Indonesia Marketing Champion
2015 in Telco from MarkPlus
Inc.
:0:
)
4' 4
'
4,
' !
4,
3 Categories for Telkomsel
MarkPlus Inc.
for Telkomsel from Mobile
Marketing Association
' !
4,
4,
'
Frontier Consulting Group &
Marketing Magazine
6
Frontier Consulting Group &
SWA Magazine
Telecommunication Operator
Association in Indonesia
@ .
7 =
&@
1
Mix-Marcomm Magazine
%.
4,
4,
4,
'
@
#
.
For Telkomsel from Surveyone
& Marketing Magazine
.
4,
4
!
Mix-Marcomm Magazine
17
Content
TELKOM in Brief
FY15 Financial & Operational Results
2015
Company Guidance 2016
18
2016 Management Guidance
!
6 , 7
To grow inline with or better than market rate in FY16 by continued
effort in growing digital business
5
To slightly decline in line with continued broadband infrastructure
development both in mobile and fixed line businesses
%4 &
.
#
2
%.
%.
.
-
5
,
#
)1
% ! %.
8
&
1
'
-
6
, 7
19
Telkom Group Portfolios
In 2016 we have new portfolio structure
1
1
with
Mobile Legacy
Mobile
Broadbandt
A
.;
(CFU)
Wholesale Interconnection
International
Businest
Fixed Voice
Fixed
Broadbandt
CFU
Satellites
Towerst
%.
' !
@
Portfolios
CFU
'
A)
' !
!
1
%.
@
Enterprise
Connectivity
IT Services
Data Center and
Cloud
BPO
Devices/Hardware
5
,
>
#
Facing Units
1
'
Payments
Digital Advertising
Big Data & Other
Smart Enablers
CFU
CFU
e-Commerce
Video/TV
Mobile Digital (e.g., Games, Music)
:7
Property
CFU
%.
0 7
>
&
B
20
C&4
21
Thank You
22
FY15
Conference Call
March 8, 2016
1
Disclaimer
This document may contain forward-looking statements within the meaning of safeharbor. 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.
2
Content
TELKOM in Brief
FY15 Financial & Operational Results
Company Guidance 2016
3
Content
TELKOM in Brief
FY15 Financial & Operational Results
Company Guidance 2016
4
Telkom and Subsidiaries
Government
Public
%
Business
%
Business
Business
Business
Note:
: Telecommunication
: Information, Media & Edutainment
Affiliation
Current Ownership
Government
Public
Total Shares
shares
Treasury Shares
Telkom Indonesia is listed at
Indonesia Stock Exchange (Bloomberg: TLKM IJ)
and New York Stock Exchange (Bloomberg: TLK
US)
Market Capitalization at IDX
Rp344.2Tn*
*as of March 4, 2016
6
Content
TELKOM in Brief
9M15Financial
Financial&&Operational
OperationalResults
Results
FY15
Company Guidance 2016
7
FY15 Performance Highlights
recorded strong growth of
(YoY) recorded revenue of over Rp
trillion.
!
#
grew
!
$" YoY to Rp
" Year on Year
trillion.
' '* revenue grew by
" YoY ; mobile digital business jumped + " YoY.
%
+
&
grew by
'
!
( )
. / remained healthy with voice rose
" YoY.
continued its leading network supply with
installed to strengthen mobile broadband experience.
#
Around
" YoY and SMS
$
,- '
" of new BTSs are 3G/4G BTS.
8
FY15 Operational Results
#
01
Total customers: 152.6 mn, increased 8.6% YoY.
3G/4G-capable device users: 61.7 mn (+52.7%).
Mobile data payload jumped 110% to 492 Peta-bytes.
2.2 mn customers changed to USIM to enjoy 4G LTE.
Added 17,869 new BTS in FY15, 90% are 3G/4G BTS.
230
01
IndiHome subs reached 1.1 Million in FY15
Fixed broadband users (incl. non-IndiHome)
increased 17.2 % YoY to 4 million
Fixed line subs increased to 10.3 million (+6.0% YoY)
9
Strong Revenue Growth, Driven by
Data Business
!
YoY
(Rp Trillion)
37.3
34.3
$
32.7
FY14
FY15
23.8
14.0
15.1
8.4
7.8
4.5
Cellular Voice
FY14
FY15
Data Internet & IT
Service (Excl. SMS)
SMS
5.2
4.7
4.3
Fixed Line Voice Network and Other Interconnection
Telco Services
Note: in TSEL, SMS Banking and SMS advertising were recorded in digital services
10
Strong Normalized EBITDA & Net Income
Growth
(Excluding Early Retirement Program)
-
%4 YoY
(Rp Trillion)
5
YoY
(Rp Trillion)
-
%4 6
5
6 , 7
without ERP
, 7
without ERP
FY14
FY15
FY14
FY15
11
Increased Operating Expenses in line with
Infrastructure Development
01
.
)1
YoY
(Rp Trillion)
28.1
22.3
FY14
FY15
18.5
17.1
11.9
9.8
4.0
FY14
4.2
4.9
3.6
3.1
3.3
FY15
12
Telkomsel: Strong Revenue Growth with Healthy
Profitability
YEAR-ON-YEAR ACHIEVEMENT
EBITDA
REVENUES
In Trillion
In Trillion
+15%
76.1
66.3
Digital
Business
15.6
NET INCOME
In Trillion
In Trillion
CAPEX
PAID
42.6
37.2
43% 22.4
22.4
19.4
14.5
15%
Legacy
50.6
6%
FY14
53.7
FY15
TOTAL ASSET
In Trillion
FY14
FY15
Margin
56%
56%
CUSTOMER
In Million
FY14
-10%
FY15
84.1
79.4
152.6
140.6
29%
9%
BTS ROLL OUT
In Thousand
FY14
17.9
1.6 4G
15.6
0.2
11.8
3.6
FY15
FY15
FY15
29%
FY14
BTS ON AIR
In Thousand
+21%
85.4
0.2
38.8
21%
6%
FY14
Margin
+15%
FY14
13.1
14%
103.3
1.8 4G
37% 53.1
3G
14.3 3G
-44%
46.4
2.0 2G
FY15
FY14
4%
48.4
2G
FY15
13
Telkomsel: Continue to Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE
In Trillion
+43%
Broadband:
492.2
39%
FY14
FY14
FY15
110%
3G & 4G BTS
ROLL OUT
61.7
40.4
Digital Services:
15.9
1.6
4G
3G
21% 14.3
11.8
FY14
FY15
- Digital Lifestyle
- Digital Advertising
- Digital Payment & Mobile Banking
- M2M
3G & 4G BTS
ON AIR
In Thousand
12.0
0.2
53%
FY15
FY14
FY15
In Thousand
In Million
BlackBerry
234.9
2.1
3G/4G CAPABLE
DEVICE
FY14
Telkomsel
Flash
9%
14.1
1.5
73.9
67.9
44% 20.3
Digital
Services
In PB
22.4
15.6
Broadband
DATA TRAFFIC
DATA USER
In Million
FY15
54.9
1.8
4G
39.0
0.2
3G
38.8
FY14
37% 53.1
FY15
14
Accelerating Fixed Line Business
4
.
.1
.
8
8
1 /
, #
By strengthened capacity and capability
of Human Resources as well as improved
business process
subscribers as of
December 2015
%
7
7 .
As of end of Dec 2015 we have
4,800 fiber technicians
More than 60 million households
with growing middle class segments
Very low fixed broadband
penetration (around 6%)
15
Progress in 2015
' 49;' '
94
True
Broadband
Access
10 million fiber-based
homes passed
320 thousand WiFi access
points
Connecting Indonesia to United States
Consortium of 7 operators , expected
completion 4Q17
' 49
9
.
Nationwide
Broadband
Backbone
9
Convergence
Digital
Innovation
81.9 thousand km of
nationwide fiber-based
backbone network
74 thousand square meters of Data
Center
20 thousand square meters of Data
Center in Jurong Malaysia (under
contsruction)
'/
9:
'
'/
Connecting Indonesia to West Europe
Consortium of 22 operators, expected
completion 4Q16
4 <
6
Still under review by
US Authorities
16
Awards & Recognition
8
4,
1
'
/
7 Awards for Telkom from
Dunamis and Business News
Week
>
1
-
?
Brand Finance & SWA Magazine
A
#
.+
4,
&'
!
)
7 =
ASEAN Marketing Summit
' 4
4,
1
Forbes Indonesia
-
National Center for Sustainabiliy
Reporting
7 -
#
Infrasctructure Week 2015
7 =
Indonesia Marketing Champion
2015 in Telco from MarkPlus
Inc.
:0:
)
4' 4
'
4,
' !
4,
3 Categories for Telkomsel
MarkPlus Inc.
for Telkomsel from Mobile
Marketing Association
' !
4,
4,
'
Frontier Consulting Group &
Marketing Magazine
6
Frontier Consulting Group &
SWA Magazine
Telecommunication Operator
Association in Indonesia
@ .
7 =
&@
1
Mix-Marcomm Magazine
%.
4,
4,
4,
'
@
#
.
For Telkomsel from Surveyone
& Marketing Magazine
.
4,
4
!
Mix-Marcomm Magazine
17
Content
TELKOM in Brief
FY15 Financial & Operational Results
2015
Company Guidance 2016
18
2016 Management Guidance
!
6 , 7
To grow inline with or better than market rate in FY16 by continued
effort in growing digital business
5
To slightly decline in line with continued broadband infrastructure
development both in mobile and fixed line businesses
%4 &
.
#
2
%.
%.
.
-
5
,
#
)1
% ! %.
8
&
1
'
-
6
, 7
19
Telkom Group Portfolios
In 2016 we have new portfolio structure
1
1
with
Mobile Legacy
Mobile
Broadbandt
A
.;
(CFU)
Wholesale Interconnection
International
Businest
Fixed Voice
Fixed
Broadbandt
CFU
Satellites
Towerst
%.
' !
@
Portfolios
CFU
'
A)
' !
!
1
%.
@
Enterprise
Connectivity
IT Services
Data Center and
Cloud
BPO
Devices/Hardware
5
,
>
#
Facing Units
1
'
Payments
Digital Advertising
Big Data & Other
Smart Enablers
CFU
CFU
e-Commerce
Video/TV
Mobile Digital (e.g., Games, Music)
:7
Property
CFU
%.
0 7
>
&
B
20
C&4
21
Thank You
22