TLKM FY16 Earnings Call Final

Corporate Presentation

FY16 Results
PT Telkom Indonesia (Persero) Tbk
7 March 2017

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

TELKOM in Brief

FY16 Financial & Operational Results
Company Guidance 2016


3

Share Ownership
Government

52.1%

Public

47.9%

Total Shares

100,799,996,400 shares

Treasury Stock
1.7 Bn shares
Telkom Indonesia is listed at
Indonesia Stock Exchange (Bloomberg: TLKM IJ)

and New York Stock Exchange (TLK US)

Market Capitalization

Rp401.2 Tn (USD29.4 Bn)*

*as of Dec31, 2016
4

Board of Directors
Telkom

CEO TELKOM GROUP

Director

Director

Director


ALEX J. SINAGA

INDRA UTOYO

HARRY M. ZEN

HERDI R. HARMAN

Director

Director

Director

ABDUS SOMAD ARIEF

DIAN RACHMAWAN

HONESTI BASYIR


Telkomsel

CEO Telkomsel

Director

Director

RIRIEK ADRIANSYAH

HERI SUPRIADI

EDWARD YING SIEW HENG

Director

MAS’UD KHAMID

Director
ALISTAIR D JOHNSTON


Director

Director

SUKARDI SILALAHI

Director

PRIYANTONO RUDITO

MONTGOMERY HONG

5

TELKOM Introduction

FY16 Financial & Operational Results
Company Guidance 2016


6

FY16 Performance Highlights

Telkom Indonesia delivered remarkable remark in FY16, posting triple doubledigit growth in Revenue, EBITDA, and Net Income of 13.5%, 15.7%,and
24.9% YoY respectively.

Data, Internet & IT Services sharply increased by more than 31% YoY. This
segment contributed 37.0% to total revenue.

Telkomsel recorded another triple double-digit with Revenue grew by 14.0%,
EBITDA 16.9%, and Net Income 26.1% respectively.

Telkomsel installed 25,744 new BTS, of which around 92% are 3G/4G BTS to
enhance mobile broadband experience.

7

Strong EBITDA & Net Income Growth
with Healthy Margins

59.5
EBITDA YoY

51.4

(Rp Trillion)

19.4
 15.7%

15.5
 24.9%

Net Income YoY
(Rp Trillion)

Margin
50.2%

FY15


51.1%

FY16

Margin
15.1%

16.6%

FY15

FY16

8

Strong Revenue Growth, Driven by
Data Business
116.3
Revenue YoY (Rp Trillion)

52.4

102.5

54.5

13.5%

43.0

37.0%
32.7

contribution to total
revenue (increased from
31.9% in FY15)

7.8

7.5

4.3

Cellular Voice
and SMS

Data, Internet
& IT Services

Fixed Line
Voice

 3.9%

 31.5%

 3.7%

Note: SMS included SMS Banking and SMS advertising

4.2


Interconnection

 3.2%

5.2

7.2

Network &
Other Telco
Services

 36.8%
FY15

FY16

FY15

FY16

Moderate Growth in Expenses
77.1
70.1

Expenses YoY (Rp Trillion)
31.3
28.1

 10.1%
18.5 18.5

13.6
11.9

3.6 3.2

O&M

 11.2%

3.3

4.1

Personnel

Interconnection

Marketing

 14.6%

 10.3%

 26.2%

4.2 4.6

G&A

D&A

 9.7%

 0.0%

FY15

FY16

FY15

FY16

TSEL: PERFORMANCE HIGHLIGHTS
Maintained Strong Performance Momentum during 2016
YEAR-ON-YEAR ACHIEVEMENT
EBITDA

REVENUES
In Trillion

+14%

In Trillion

Digital
Business

22.4

49.8

42.6
37% 30.7

CAPEX
In Trillion PAID

In Trillion

86.7
76.1

NET INCOME

28.2

22.4

17%

13.5

13.1
4%

26%
4%

Legacy

53.7

56.1

FY16

FY15

TOTAL ASSET

In Trillion

FY15
FY16
Margin
56%

57%

CUSTOMER

In Million

FY15

89.8

29%

+44%

14.3
2.0
FY16

FY15

FY16

BTS ON AIR

BTS ROLL OUT

In Thousand

In Thousand

17.9
1.6

7%

FY15

33%

152.6
14%

FY16

Margin

173.9
84.1

FY15

FY16

FY15

+25%

25.7
4.6 4G

192%

34% 19.2

2%

2.0
FY16

3G

103.3 261%
1.8
53.1

36%

48.4

4%

129.0
6.4 4G
72.3

50.3

3G

2G

2G

FY15

FY16
11

TSEL: PERFORMANCE HIGHLIGHTS
Continue to Focus on Digital Business
YEAR-ON-YEAR ACHIEVEMENT
DIGITAL BUSINESS
REVENUE

In Trillion

+37%

Broadband:

Broadband

Digital
Services

In TB

958,733

30.7

22.4

84.7

73.9
37%

DATA TRAFFIC

DATA USER
In Million

27.7

492,245

15%

95%

20.3
39%

2.1
FY15

FY15

FY16

In Million

3G & 4G BTS
ROLL OUT
In Thousand

82.6
61.7
4G

34%

3G
FY16

FY15

FY16

FY16

- Digital Lifestyle
- Digital Advertising
- Mobile Financial Services
- Enterprise Digital Services

3G & 4G BTS
ON AIR
In Thousand

23.8
15.9 192% 4.6
1.6
19.2
14.3 34%
FY15

BlackBerry

Digital Services:

3.0

3G/4G CAPABLE
DEVICE

FY15

Telkomsel
Flash

FY16

78.7
261% 6.4

4G

54.9
1.8

3G

53.1 36%

FY15

72.3

FY16
12

Excellent Operational Results
Telkomsel Operational

TELKOM Operational



3G/4G-capable device users: 82.6 mn
(+33.9% YoY). 19 mn has enjoyed 4G.



IndiHome subs reached 1.62 Mn
increased 52.1% YoY



Mobile data payload jumped 94.8% YoY
to 958.7 TB.





Added 25,700 new BTS (around 90%
3G/4G). Total BTS 129K (61% 3G/4G).

More content including video
streaming platform and attractive
features such as Movin’.



ARPU in 4Q Rp341K (vs Rp313K in 3Q)



Fixed broadband users (incl. nonIndiHome) increased 8.7% YoY to
4.3 Mn



4G LTE Service: 169 cities across
Indonesia, 6,362 BTS



Total customers: 173.9 mn, increased
13.9% YoY.

13

Strong Enterprise & Wholesale Business
Enterprise Business
Services

Supporting Smart
City Initiatives

Delivers fixed line services to
corporate, SMEs, and
government

Implementation of IT-based
public services system

1,339

944

Corporate
Customers

Government
institution

299,900

Wholesale
Business
To serve other
licensed operators in
Indonesia

219 cities
Smart City System by TELKOM
including Surabaya, Bandung
& Bogor

Recent Development

SME Customers

Telkom-3S Satellite Launch

65%

2,524 Gbps

National market
share (Traffic)

total bandwidth in service
(integrated IT Solutions)

Telkom launched Telkom-3S
satellite on 15 February 2017 in
Kourou, French Guiana. Telkom-3S
carries 42 transponders consists of
24 C-Band, 8 extended C-Band, 10
Ku-Band.

Next year Telkom is going to
launch another satellite with
bigger capacity, in an effort to
reduce dependency on foreign
satellite operators.

14

Superior Network
+213K

20,000 sqm

wifi access point
added

world class data center in Jurong
completed
Maps of Indonesia Backbone Network

SEA-ME-WE-5
20,000 km from Dumai,
Indonesia - Marseille, France

SEA-US
14,400 km from Manado,
Indonesia - California, USA
Expected completion Q3 2017

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



Completed Sulawesi-Maluku-Papua Cable System
(SMPCS) in Q4



Completed SEA-ME-WE-5



Still constructing SEA-US submarine cable system,
scheduled to commence in 3Q17



Indonesia Global Gateway integrate two submarines
cable systems with domestic network, to complete in
1Q18

>4,000 km
SMPCS cable system
completed

15

TELKOM in Introduction

FY16 Operational & Financial Results
Company Guidance 2016

16

2017 Guidance
Revenue
Growth

EBITDA &
Net Income Margins

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.

CAPEX
Around 23%-25% of
revenue with focus on
mobile and broadband
infrastructure

MAIN PROGRAM
Telkomsel

Indonesia
Digital Network

International
Expansion

Leading Mobile
Digital Business

Drive Digital Home
& Enterprise

Smart International
Business Growth

Thank You

Thank You
PT Telkom Indonesia (Persero) Tbk
March 2017

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