9M15 Results

Conference Call10 November 2015

Corporate Presentation

Disclaimer

This document may contain forward-looking statements within the meaning of safe-harbor. Actual results could differ materially from projections, estimations orexpectations. These may involve risks and uncertainty, and may cause actual resultsand development to differ substantially from those expressed or implied in thestatements. The company does not guarantee that any action, which may have beentaken 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 Parenting Structure

Government Public

52.6% 47.4%

Mobile

BusinessMultimedia

BusinessInternational

Business

Infrastructure

Business

Singapore Hongkong Timor Leste Australia

Macau Saudi Arabia USA Malaysia

New Zealand Myanmar

Affiliation

TT TIME

Note:T : TelecommunicationIME : Information, Media & Edutainment

Telkom Group PortfoliosWell diversified business portfolio: 9 Product Portfolios and 7 Customer Portfolios

9Product

Portfolio

7Customer

Portfolio

Personal

1

HomeConsumer

2

Business

3

Enterprise

4

Government

5

Wholesale

6

International

7

Fixed

Services

◼Fixed Phone◼Fixed Broadband◼WiFi

1 Mobile

Services

◼Full Mobility◼Limited Mobility

2 NW & Infra

Services

◼Interconnection & International Traffic

◼Network Service◼Satellite◼Tower

3

Platform

Services

◼Managed Apps & SI◼BPM◼Premise Integration◼E-Payment◼DataCenter &

Cloud◼M2M

4 Big

Data

◼Big Data

5 Ecosystem

Solution

◼ E-Health◼ E-Tourism◼ E-Transportation◼ E-Gov

6

Digital

Life7 Digital

Home8 Digital

Advertising9ME

I

T

Share Ownership

Government 52.6% Public 47.4% Treasury Shares 2.6%

Total Shares

100,799,996,400 shares

Market Capitalization at IDX

Rp275.1 Tn*

Telkom Indonesia is listed at Indonesia Stock Exchange (Bloomberg: TLKM IJ) and New York Stock Exchange(Bloomberg: TLK US)

*as of 31 October 2015

Content

TELKOM in Brief

9M15 Financial & Operational Results

Company Guidance FY15

9M15 Financial & Operational Results

9M15 Performance Highlights

◼ Consolidated Revenue grew by 15.0% Year on Year (YoY) to Rp75.7 trillion

◼ Cellular business contributed 70% to consolidated revenues.

◼ EBITDA Margin remained strong at 49.0%

◼ Net Income Margin remained healthy at 15.2%

9M15 Operational Results

Telkomsel Operational

◼ 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.

TELKOM Operational

◼ IndiHome subs reach 678K in 9M15

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

◼ Fixed line subs increase to 10.03 million

Strong Revenue Growth, Driven by Data Business

65,8

75,7

9M14 9M15

15.0%Revenue YoY(Rp Trillion)

25,1

17,4

10,3

6,8

2,63,5

27,5

23,5

11,2

6,5

3,7 3,4

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

SMS Fixed Line Voice Network andOther Telco

Services

Interconnection

9.5%

34.7%

8.1%

4.7%

40.9% 3.9%

◼ 9M14

◼ 9M15

11,3 11,5

9M14 9M15

Strong Normalized EBITDA & Net Income Growth(Excluding Early Retirement Program)

33,3

37,1

9M14 9M15

EBITDA YoY (Rp Trillion)

11.4%

Net Income YoY (Rp Trillion)

2.5%

EBITDA Growth

without ERP

13.5%

Net Income

Growth

without ERP

7.4%

Increased Operating Expenses in line with Infrastructure Development

43,9

51,7

9M14 9M15

17.9% Operating Expenses YoY (Rp Trillion)

16,8

12,0

7,4

2,43,7

2,3

21,3

13,5

9,2

3,3 2,7 2,2

Operation,Maintenance &

TelecommunicationServices

Depreciation &Amortization

Personnel General &Administrative

Interconnection Marketing

24.5%

26.6%

27.0%

12.2%

36.9% 6.2%

◼ 9M14

◼ 9M15

Telkomsel : Solid Revenue Growth with Strong Profitability

14

+15%

9M15

55.6

39.9

15.7

9M14

48.4

37.3

11.1

REVENUES

1.0

9M14

13.5

3.4

10.0

0.0

+11%

9M15

15.0

1.7

12.2

In Million In Thousand

In Trillion

9M15

9.7

9M14

9.5

CAPEX

PAID

TOTAL ASSET BTS ROLL OUT BTS ON AIRIn Thousand

+20%

9M15

100.4

48.1

51.1

1.2

9M14

83.3

46.3

37.1

0.0

CUSTOMER In Trillion

7%Legacy

Digital

Business

22%

-50%

42%

38%

4%

EBITDA NET INCOMEIn TrillionIn Trillion

Margin

56%55%

Margin

30%29%

9M15

31.2

9M14

26.8

9M15

16.5

9M14

13.8

20%16%

9M15

82.8

9M14

74.7

11%

9M15

148.6

9M14

139.3

7%

In Trillion

3G

2G

4G

3G

2G

4G

2%

YEAR-ON-YEAR ACHIEVEMENT

Telkomsel: Continued Focus on Digital Business

15

YEAR-ON-YEAR ACHIEVEMENT

9M15

15.7

1.5

14.3

9M14

11.1

1.1

10.0

+42%

DIGITAL BUSINESS

REVENUEIn MillionIn Trillion

DATA USER

39%Digital

Services

Broadband

42%

9M15

341.7

9M14

155.9

DATA TRAFFIC

119%

In PB

55.6

9M14

35.4

9M15

3G/4G CAPABLE

DEVICE

57%

In Million

9M159M14

3G & 4G BTS

ROLL OUT In Thousand

3G & 4G BTS

ON AIR In Thousand

67.9

9M14

63.5

9M15

7%

3G

4G

13.2

12.2

1.010.0

10.0

0.0

22% 37.1

0.0

3G

4G

52.3

51.1

1.237.1

9M159M14

38%

Broadband:

Telkomsel Flash

BlackBerry

Digital Services:- Digital Lifestyle

- Digital Advertising

- Digital Payment & Mobile Banking

- M2M

Rejuvenated Fixed Line Business

❑ Huge Potential Demand for IndiHome

◼ More than 60 mn households with growing middle class segments

◼ Very low fixed broadband penetration of around 5%

❑ Accelerating the deployment of fiber to the home

◼ Strengthening capacity & capability of technicians as well as business process

◼ Telkom expects to have 10K technicians with 10K of NAL/day going forward

❑ Encouraging progress of IndiHome

◼ 678K subscribers at September (only 9 month after IndiHome was launched)

Monetising 6.3 mn fiber homes-passed

Recent Development

Tower Assets

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

◼ Next step: To evaluate available options to unlock value of tower asset

Fiber Backbone

◼ Continued the development of fiber backbone nationwide

◼ 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 2015Company Guidance FY15

EBITDA &

Net Income

Margins

To decline slightly in line with continued broadband infrastructure development both in mobile and fixed line businesses

FY15 Management Guidance

Revenue

Growth

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

Main Programs

Mobile Business Indonesia Digital Network International Expansion

◼ 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

✓ Maintain double digit

growth

✓ Grow digital business

✓ Turn-around fixed line

✓ Drive digital business

✓ Stretch & Expand int’l

business

✓ Strengthen footprint in

regional

Thank You