Corporate Presentation TELKOM 9M15 final

9M15

Corporate Presentation

9M15

Conference Call

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 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.

Content

TELKOM in Brief

9M15 Financial & Operational Results

Company Guidance FY15

Content

TELKOM in Brief

9M15 Financial & Operational Results

Company Guidance FY15

TELKOM in Brief

Telkom and Subsidiaries

Government Public

% %

Business

Business BusinessBusiness BusinessBusiness BusinessBusiness

Affiliation

Note:

: Telecommunication

Telkom Group Portfolios

Well diversified business portfolio:

Portfolios and Portfolios

Portfolio Portfolio Personal Home Consumer Business ! " Fixed Phone Fixed Broadband WiFi ! " Full Mobility Limited Mobility #$ % ! " Interconnection & International Traffic Network Service Satellite Tower Portfolio Enterprise Government Wholesale International

! " ! " ! "

! "

Managed Apps & SI BPM Premise Integration E-Payment DataCenter & Cloud M2M & ' ( Big Data ) ! E-Health E-Tourism E-Transportation E-Gov ( ' * ( ' + ( '

Share Ownership

Government Public Treasury Shares

Total Shares

-../

/

/ ..

shares

Telkom Indonesia is listed at

Indonesia Stock Exchange (Bloomberg: TLKM IJ) and New York Stock Exchange

Market Capitalization at IDX

Rp

-

Tn*

TLKM IJ) and New York Stock Exchange (Bloomberg: TLK US)

Content

TELKOM in Brief

9M15 Financial & Operational Results

Company Guidance FY15

9M15 Financial & Operational Results

9M15 Performance Highlights

"

grew by

- .0

Year on Year (YoY)

to Rp

trillion

.0

to consolidated revenues.

& (, '

remained strong at

.0

9M15 Operational Results

1 23

Added 14,962 new BTSs in 9M15, 88% are 3G/4G BTS 8.0 mn net add in 9M15. Total customers: 148.6 mn Mobile data payload jumped 119.2%.

3G/4G capable device users grew 57.3% to 55.6 million.

*42 23

IndiHome subs reach 678K in 9M15

Fixed broadband users (incl. IndiHome) increased 13% YoY to 3.7 million

Strong Revenue Growth, Driven by

Data Business

/5

/

" YoY

(Rp Trillion)

25,1

27,5

23,5

9M14 9M15

17,4

10,3

6,8

2,6 3,5

11,2

6,5

3,7 _3,4

Cellular Voice Data, Internet & IT Service (Excl.SMS)

SMS Fixed Line Voice Network and Other Telco

Services

Interconnection 9M14 9M15

--/6 --/

Strong Normalized EBITDA & Net Income

Growth

(Excluding Early Retirement Program)

66/6

6

/-& (, YoY

(Rp Trillion) # YoY

(Rp Trillion)

9M14 9M15 9M14 9M15

& (, 7 8 9

without ERP

#

7 8 9

Increased Operating Expenses in line with

Infrastructure Development

6/

-/

23 ' 3 YoY

(Rp Trillion)

21,3

9M14 9M15

16,8

12,0

7,4

2,4 3,7 2,3

13,5

9,2

3,3 _2,7

2,2

Operation, Maintenance & Telecommunication

Services

Depreciation & Amortization

Personnel General & Administrative

Interconnection Marketing 9M14 9M15

Telkomsel : Solid Revenue Growth with

Strong Profitability

+15% 55.6 39.9 15.7 48.4 37.3 11.1 REVENUES In Trillion 9M15 9.7 9M14 9.5 CAPEX PAID 7% Legacy Digital Business 42%

EBITDA NET INCOME

In Trillion In Trillion 9M15 31.2 9M14 26.8 9M15 16.5 9M14 13.8 20% 16% In Trillion 2% YEAR-ON-YEAR ACHIEVEMENT YEAR-ON-YEAR ACHIEVEMENT 9M15 9M14 1.0 9M14 13.5 3.4 10.0 0.0 +11% 9M15 15.0 1.7 12.2

In Million In Thousand

9M15 9M14

TOTAL ASSET BTS ROLL OUT BTS ON AIR

In Thousand +20% 9M15 100.4 48.1 51.1 1.2 9M14 83.3 46.3 37.1 0.0 CUSTOMER In Trillion 22% -50% 38% 4% Margin 56% 55% Margin 30% 29% 9M15

9M14 9M14 9M15

9M15 82.8 9M14 74.7 11% 9M15 148.6 9M14 139.3 7% 3G 2G 4G 3G 2G 4G

Telkomsel: Continued Focus on Digital Business

YEAR-ON-YEAR ACHIEVEMENT YEAR-ON-YEAR ACHIEVEMENT 15.7 14.3 11.1 10.0 +42% DIGITAL BUSINESS REVENUE In Million In Trillion DATA USER Digital Broadband 42% 341.7 155.9 DATA TRAFFIC 119% In PB 67.9 63.5 7% Broadband: Telkomsel Flash BlackBerry Digital Services: 9M15 1.5 9M14 1.1 39% Digital Services 9M15 9M14 55.6 9M14 35.4 9M15 3G/4G CAPABLE DEVICE 57% In Million 9M15 9M14

3G & 4G BTS ROLL OUT

In Thousand

3G & 4G BTS ON AIR In Thousand 9M14 9M15 3G 4G 13.2 12.2 1.0 10.0 10.0 0.0 22% 37.1 0.0 3G 4G 52.3 51.1 1.2 37.1 9M15 9M14 38% Digital Services:

- Digital Lifestyle - Digital Advertising

- Digital Payment & Mobile Banking - M2M

Rejuvenated Fixed Line Business

+ ' ( +

More than 60 mn households with growing middle class segments Very low fixed broadband penetration of around 5%

, ' 9 3 ) 9 9

Strengthening capacity & capability of technicians as well as business process

Monetising 6.3 mn fiber homes-passed

Strengthening capacity & capability of technicians as well as business process Telkom expects to have 10K technicians with 10K of NAL/day going forward

' ' 3 ' +

Recent Development

8 ,

Officially called off the plan to swap Mitratel's shares with TBIG due to unfulfilled terms and conditions

& 1

Continued the development of fiber backbone nationwide Connected Merauke through and conditions

Next step: To evaluate

available options to unlock value of tower asset

Connected Merauke through SMPCS submarine broadband highway

Total fiber based backbone nationwide around 80,000km

Content

TELKOM in Brief

9M15 Financial & Operational Results

Company Guidance 2015

Company Guidance FY15

Company Guidance 2015

& (, % #

'

To decline slightly in line with continued broadband

infrastructure development both in mobile and fixed line businesses

FY15 Management Guidance

"

7 8 9

To grow better than market rate in FY15 by continued effort in growing digital business

& ( ' # 8 1 3

Exploit Legacy Business

Strengthen The Core Trigger Digital

Services

ID-Ring ID-Access

ID-Convergence

Follow the People Follow the Network

Follow the Traffic & Money

'

' 8 9

7 8 '

:

( " '

! 9 % 3 ;

! ' 9 3

Telkomsel: Continued Focus on Digital Business

YEAR-ON-YEAR ACHIEVEMENT YEAR-ON-YEAR ACHIEVEMENT 15.7 14.3 11.1 10.0 +42% DIGITAL BUSINESS REVENUE In Million In Trillion DATA USER Digital Broadband 42% 341.7 155.9 DATA TRAFFIC 119% In PB 67.9 63.5 7% Broadband: Telkomsel Flash BlackBerry Digital Services: 15 9M15 1.5 9M14 1.1 39% Digital Services 9M15 9M14 55.6 9M14 35.4 9M15 3G/4G CAPABLE DEVICE 57% In Million 9M15 9M14

3G & 4G BTS ROLL OUT

In Thousand

3G & 4G BTS ON AIR In Thousand 9M14 9M15 3G 4G 13.2 12.2 1.0 10.0 10.0 0.0 22% 37.1 0.0 3G 4G 52.3 51.1 1.2 37.1 9M15 9M14 38% Digital Services:

- Digital Lifestyle - Digital Advertising

- Digital Payment & Mobile Banking - M2M

Rejuvenated Fixed Line Business

+ ' ( +

More than 60 mn households with growing middle class segments Very low fixed broadband penetration of around 5%

, ' 9 3 ) 9 9

Strengthening capacity & capability of technicians as well as business process

Monetising 6.3 mn fiber homes-passed

Strengthening capacity & capability of technicians as well as business process Telkom expects to have 10K technicians with 10K of NAL/day going forward

' ' 3 ' +

Recent Development

8 ,

Officially called off the plan to swap Mitratel's shares with TBIG due to unfulfilled terms and conditions

& 1

Continued the development of fiber backbone nationwide Connected Merauke through and conditions

Next step: To evaluate

available options to unlock value of tower asset

Connected Merauke through SMPCS submarine broadband highway

Total fiber based backbone nationwide around 80,000km

Content

TELKOM in Brief

9M15 Financial & Operational Results

Company Guidance 2015

Company Guidance FY15

Company Guidance 2015

& (, % #

'

To decline slightly in line with continued broadband

infrastructure development both in mobile and fixed line businesses

FY15 Management Guidance

"

7 8 9

To grow better than market rate in FY15 by continued effort in growing digital business

& ( ' # 8 1 3

Exploit Legacy Business

Strengthen The Core Trigger Digital

Services

ID-Ring ID-Access

ID-Convergence

Follow the People Follow the Network

Follow the Traffic & Money

'

' 8 9

7 8 '

:

( " '

! 9 % 3 ;

! ' 9 3

'