TLKM NDR SEPT OCT 2013

September 2013

1

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

1H13 Result

02

Telkom in Brief

03

Cellular Business

04

Fixedline Business

President Director and Chief Executive Officer : Arief Yahya Director of Finance & Chief Financial Officer : Honesti Basyir Director of IT Network and Solution & Chief Technology Officer : Rizkan Chandra Director of Human Capital Management : Priyantono Rudito Director of Enterprise & Business Service : Muhammad Awaluddin Director of Wholesale & International Service : Ririek Adriansyah Director of Consumer Service : Sukardi Silalahi Director of Innovation & Strategic Portfolio : Indra Utoyo

Board of Directors

Tot a l Sha re s (a ft e r St oc k Split )

100.799.996.400

shares

M a rke t Ca pit a liza t ion a t I DX

To p 4

221,8Tn

*

Current Ownership

6

Telkom Indonesia is listed at Indonesia Stock Exchange (IDX), New York Stock Exchange (NYSE), London Stock Exchange (LSE) and also Publicly Offering Without Listing (POWL) in Japan.

Public

45,1%

Government

51,2%

*) as of August 31, 2013

Business and Customer Portfolio

7

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 Local Operators )

Ser

vi

8

Telkom and Subsidiaries

(Satellite)

TSFL

49%

Government

of I ndonesia Public/ Listed

53.7% 46.3%

100% 65%

(Cellular) (Multimedia)

(Property & construction)

Consolidated Unconsolidated 100% (VSAT) 22.38% 25% (VSAT) 40% 100% 100% 100% 75% 60% TFBV 100% 100% 100% (Edutainment) 51% (Tower business) 100% 100% (International business) 100% (Telco Equipment) 51% 55% 100% 100% 60% 51% 100% 51% 49% 100% 100% 100% 100%

Indonesia Telecommunication Industry

9

1H-2013 Subscriber Market Share

Prabayar

Pasca Bayar

Penetration (SIM Card)

•Total Cell Subs >310 mn •Total BIG 3 Subs: 235 mn

56.5M

18%

54.2M

17%

TSEL 125.1 M

40%

XL 54.2 M

17%

ISAT 56.5 M

Telkom Customers

10

Highlights

Well maintained strong financial results

Consol Revenue

grew 9.4% YoY to Rp40.2tn

Tsel Revenue

grew by 12.0% YoY to Rp28.5tn

Telkom unconsol improve the positive

growth at 1.1% YoY

Gaining strong subscribers growth

Broadband users

grew 71.1% YoY to more than 20.2mn.

Cellular subscribers

grew 6.7% YoY to 125.1mn, back to the same

level as year end 2012 subscribers.

Telkomsel continues the leadership in network quality and coverage

Total BTS

62,225 units, a 31.7% YoY growth

3G BTS

20,828 units, a 86.6% YoY growth.

New BTS 1H13

7,928 units, a 71.2% YoY growth, average >1,300

BTS/month

.

Data Services

Revenues (Rp Tn)

13

1H12

1H13

Users (Mn)

1H12

1H13

Fixed Bband

Mobile Data

▲

11.1%

▲

42.1%

▲

9.9%

Mobile Data Speedy

▲

6.4%

▲

37.9%

47.1

51.8

2.0

2.8

3.5

4.8

Revenues YoY

(

Rp Tn

)

14

14

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

1H12

1H13

▲

9.4%

36.7 40.2 14.7 12.7 5.6

1.9 0.6

1.2

15.4 _15.0

5.0

2.4 _0.7 1.7

Cellular voice Data, Internet, & IT

Fixed line voice Interconnection Network Other

1H12 1H13

1H12 1H13

Data Comm, Internet, IT SMS

VoIP & e-Business 6.9 5.8 0.1 8.6 6.4 0.1

Expenses YoY

(

Rp Tn

)

15

▲

7.8%

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

1H12

1H13

26.3

24.4

8.2

7.0

4.2

2.1

1.5 1.4

0.0 9.7

6.9

4.6

2.4

1.3 1.6

(0.3) O&M D&A Personnel Interconnection Marketing G&A Other

1H12 1H13

Capital Expenditure

(

Rp Tn

)

4.9

1.5

1.7

1H13, Total CAPEX Rp8.2 Tn or 20.3% over Revenue

Radio access network

Backbone & Access

Infrastructure

Other Subsidiaries

Tower, IT, Media, Interna

tional Expansion

1

st

Half 2013 Telkomsel Performance

+12% 1H13 28.5 23.2 5.3 1H12 25.4 21.5 3.9

REVENUE EBITDA NET INCOME

In IDR Tn In IDR Tn

1H13 15.9 1H12 14.4 1H13 8.6 1H12 7.3 125 117 1H13 1H12 +71.2% 1H13 7.9 2.5 5.4 1H12 4.6 3.0 1.7

In Million In Thousand

Year on Year Result

In IDR Tn

1H13 5.0

1H12 4.4

CAPEX

CUSTOMER BASE BTS ROLL OUT BTS NEW ON AIR

In Thousand In IDR Tn

REVENUE 12.0% EBITDA 10.6% NET INCOME 17.6% 11.2 +31.7% 1H13 62.2 41.4 20.8 1H12 47.3 36.1 DATA USER In Million CUSTOMER BASE 6.7%

BTS NEW ON AIR 31.7% 3G 2G 3G 2G 10.6% _17.6% 15.4% 6.7% Margin 56% 57% 7.6% Voice SMS Other Broadband Digital Services Margin 30% 29% 226% -15% 36.4% 87% 15% 52 47 1H12 1H13 9.9%

19

SUMATERA

30%

18.8K BTS

JAVA

43%

26.6K BTS

KALIMANTAN

9%

5.7K BTS

SULAWESI & PAPUA

12%

7.6 K BTS

BALI & NUSRA

6%

3.5K BTS

Cellular BTS

Java

43%

Non Java

57%

A comprehensive Telkomsel 2013–2015 5-part growth strategy

Growth Strategy Framework

Exploit the Legacy

 Drive leadership in key strategic segments (high-value, youth)  Leverage shareholders

to drive structural change

 Drive cost leadership

Strengthen the Core

 Become the market leader in mobile data

Trigger Digital Ecosystem

 Establish a leading advertising business  Build a new payments

business

 Enter low-cost banking (LCB) platform business  Develop new portfolio of

consumer and enterprise digital services

Acquire Selectively

(as a management company for Telkom Group)

 Acquire/partner regional operators (e.g., Myanmar, Vietnam)

 Acquire/partner regional mobile data/broadband service providers

Drive investment in Innovation

 Invest in digital platforms

Data Carriage Digital

Current Markets Legacy Platforms  Voice  SMS

 Network Leased

 Mobile Internet

 Mobile Broadband

 Digital services & platforms

M

ar

k

e

ts

Blue Ocean / International 1 2 5 3 4 20

Marketing Initiatives

Exploit the

Legacy

Strengthen

the Core

Trigger

Digital

Ecosystem

Greater focus on:

 High value customers (HVC)

 High value Youth customers

Needs-based Market

Segmentation enable highly relevant marketing programs

1

 Increase overall price levels and raise ARPU

 Drive data adoption while mitigating cannibalization

 Embed world-class pricing tools in day-to-day operations

Maximizing Value through Pricing Excellence

2

 Propensity scoring

 BTL micro-segmentation campaigns

Improved Analytics for customer retention and cross/up-selling

3

 Differentiated approach for regional sales and marketing activities

 Factors based on network utilisation & quality, competition and market segments

Zone Marking and Micro-Clustering

4

Data will be the next major growth engine

Deliver Advanced Package Bundling Exploit 3G Network Assets Expand Broadband Channel Deliver Mobile Connection Apps

Secure 3G & Wi-Fi Network Deployment Bring Data Capable Device to Telkomsel Network Broadband Strategic Initiatives

Exploit the

Legacy

Strengthen

the Core

Trigger

Digital

Ecosystem

Building the foundation for the next generation of digital Services

Digital Advertising Digital Payments Digital Lifestyle

• Establish a leading mobile advertising business

• Deliver targeted and relevant ads over mobile and web portals

• Become a dominant mobile proximity payment player

• Launch physical and

mobile based multipurpose cards

• Develop digital services addressing customer lifestyle areas

• Build a multimillion

subscriber base for digital services

Payments roadmap

Launch a prepaid card for transit and toll payments

Expand card acceptance to retail points

Launch NFC sol’n with virtual transit and retail cards

Expand NFC offerings: Multiple cards, discounts

Exploit the

Legacy

Strengthen

the Core

Trigger

Digital

Ecosystem

Roadmap: Indonesia Digital Network 2015

25

High Speed Broadband Access through Optical Fiber Network & Wifi

IP-based and Optical Backbone Network

Integrated Next Generation Network for Multi Services & Multi Screen

I DN

Id-Ring

Indonesia Digital Network

Id-Con

• High Speed Optical Access Network

• 15 million Home pass • 1 million WiFi

• IP and Optical Backbone Network • 30 Tera Router Nodes

• 75,000 km national & regional backbone network

• Convergence Service Platform • Multi Services

27

Continue to Deliver Value to Shareholders



In line with or better than the market for

both TLKM Consolidated and Telkomsel

Revenue Growth



Stable or slight decline for both

TLKM Consolidated and Telkomsel

EBITDA Margin



Group (Consolidated): 20-25% over Revenue



Allocation:



Telkomsel: 60%



TLKM (Unconsol) & Others: 40%

Capex

Building the foundation for the next generation of digital Services

Digital

Advertising

Digital

Payments

Digital

Lifestyle

• Establish a leading mobile advertising business

• Deliver targeted and relevant ads over mobile and web portals

• Become a dominant mobile proximity payment player • Launch physical and

mobile based multipurpose cards

• Develop digital services addressing customer lifestyle areas

• Build a multimillion

subscriber base for digital services

Payments roadmap

Launch a prepaid card for transit and toll payments

Expand card acceptance to retail points

Launch NFC sol’n with virtual transit and retail cards

Expand NFC offerings: Multiple cards, discounts

Exploit the

Legacy

Strengthen

the Core

Trigger

Digital

Ecosystem

Roadmap: Indonesia Digital Network 2015

25

High Speed Broadband Access through Optical Fiber Network & Wifi

IP-based and Optical Backbone Network

Integrated Next Generation Network for Multi Services & Multi Screen

I DN

Id-Ring

Indonesia Digital Network

Id-Con

•

High Speed Optical Access

Network

•

15 million Home pass

•

1 million WiFi

•

IP and Optical Backbone Network

•

30 Tera Router Nodes

•

75,000 km national & regional

backbone network

•

Convergence Service Platform

•

Multi Services

27

Continue to Deliver Value to Shareholders



In line with or better than the market for

both TLKM Consolidated and Telkomsel

Revenue Growth



Stable or slight decline for both

TLKM Consolidated and Telkomsel

EBITDA Margin



Group (Consolidated): 20-25% over Revenue



Allocation:



Telkomsel: 60%



TLKM (Unconsol) & Others: 40%

Capex