Corporate Presentation

The Result of 

Q1 2010

2

Disclaimer

This document contains financial conditions and result of operation, and may 

also contain certain projections, plans, strategies, and objectives of the 

Company, which would be treated as forward looking statements within the 

meaning of applicable law. 

Forward looking statements,  by their nature, involve risk and uncertainty that 

could cause actual results and development to differ materially from those 

expressed or implied in these statements.

Telkom Indonesia does not guarantee that any action, which should have been 

taken in reliance on this document will bring specific results as expected.

3

Double Digit Growth on Net Income  in Q1 / 2010

TelkomGroup

revenue

6.2%,6.2%,

EBITDA 

5.5%,5.5%,

and Net Income 

13% 13% YoYYoY

Cellular and Internet businesses well performed

Data, Internet & IT revenue grows 24.7%24.7%

YoYYoY

Cellular revenue grows 3.0% 3.0% YoYYoY

Fixed line voice revenue decline rate was stemmed at minus 14.2%  minus 14.2%  

(compared to minus 16% in 2009)

The growth in Data, Internet & IT revenue reflects the gradual increasing result of 

company’s strategy in growing new wave businesses

Cost management showed tangible result in Q1/2010

Growth QoQ

(Q4/09 –

Q1/10) 

Op. Expenses (Rp.Tn) 16.3%

Personnel 32.9%

O&M 13.3%

Interconnection 10.8%

G & A 17.0%

Marketing 45.5%

Depreciation 0.2%

4

Content

Telkom Indonesia in Brief

Telco Industry in Indonesia

Business Results (Operational & Financial)

5

Telkom Board of Directors

Rinaldi Firmansyah

President 

Director

(CEO)

Sudiro Asno

Director of 

Finance(CFO)

Faisal Syam

Director of

Human Capital &

General Affair 

I Nyoman G Wiryanata

Director of

Consumers

Indra

Utoyo

Director of

Information

Technology

& Supply

(CIO)

Ermady Dahlan

Director of

Network & 

Solution(COO)

Arief Yahya

Director of

Enterprise &

Wholesale

Prasetio

Director of

Compliance &

Risk

Management

6

Telkom’s Map of Operations

Full National coverage: 33 provinces and 440 districts

Bandung(Head Office)

7

Telkom Ownership

Telkom is the largest telecommunication company and 

network provider in Indonesia, majority owned by the 

Government of Indonesia 

(Total shares = 20,159,999,280, including 1 Dwiwarna share series A)

Government

Public

52.47%

10,320,470,712

shares

Treasury Stock

490,574,500

shares

47.53%

9,348,954,068

shares

Market cap : Rp162TnRp162Tn, or 7.2%7.2%

of total market cap. at IDX 

Indonesia

TELKOM is listed at 

Indonesia Stock Exchange (IDX), New 

York Stock Exchange (NYSE), London 

Stock Exchange (LSE)

and also Publicly

Offering Without Listing (POWL) at 

Tokyo Stock Exchange (TSE)as of  March 31, 2010

8

Telkom Market Capitalization

8.0%

13.5%14.5% 14.8% 14.3% 14.8%

16.3%

10.3%

12.9%

9.4%

7.2%

2132 39

68

97119

205191

162204

139

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10

Market Cap TLKM of IDX (%)Market Cap (Rp Tn)

67,868

34,617

24,4893,786

33,659

16,52210,197

NTT DoCoMo Telstra SingTel Bharti Telkom PLDT TM Berhad

Telkom market cap 

among Telco Operators

Source : Bloomberg, May 6, 2010Source : Bloomberg, May 6, 2010

Telkom market cap history in IDX

Source : IDX Monthly ReportSource : IDX Monthly Report

(in USD Million)

9

Telkom and Subsidiaries (ownership)

Government of Indonesia

Public/Listed

52.47%52.47% 47. 53%47. 53%

100%100%100%100% 99.99%99.99%65%65%

(Cellular)(Cellular)

100%100%

(Tower business)(Tower business)(Multimedia)(Multimedia)

100%100%

(IT Services)(IT Services)

(Property & construction)(Property & construction)(Edutainment)(Edutainment)

100%100%

(International business)(International business)

(Fixed Line)(Fixed Line)(VSAT)(VSAT) (Telco. construction& maintenance)(Telco. construction& maintenance)

Consolidated100%100%

(Telco Equipment)(Telco Equipment)

Unconsolidated

5%5%

(Satellite)(Satellite)

22.38%22.38%25%25%

(VSAT)(VSAT)

40%40% 2.11%2.11%

15.86% 100%80% 100%75%60%65%

100%

AWI B.VAWI B.V

10

Telkom’s Business Portfolio

ProductPortfolio

FWL/POTS

FWA

Mobile/Cellular

Broadband

Satellite 

Tower

Premise Integration

E‐Money

Media: PayTV

& FTA

Content/Portal 

CustomerPortfolio

Consumer

SME

Enterprise

Wholesale

Geography

Domestic

International

TI

M

E

2

1

3

IT Services(Managed

App & 

Perf, IT Outsourcing) & BPO/KPO Geography coverage for international investment 

is basically all over the world, however for the 

initial investment, Asia and Middle‐East will be the 

priority.

T

I

M

E

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

11

Content

Telkom Indonesia in Brief

Telco Industry in Indonesia

Business Results (Operational & Financial)

12

Indonesia’s Telco Industry Landscape 

There are 11 operators serving more than 234 Mn

population, in which 56% of them 

are young dynamic population…

9%

27%8%

56%

0-1415-1920-5960+

Population by Age

Indonesia population

Population: approx. 234

million +

Young dynamic population 56%

OperatorsOperators

13

Telco Penetration

as of March 31, 2010

Total Industry

± 8.4 mn ± 28 mn ± 180 mn ± 3.9 mn

Cellular (full mobility)

Fixed Wireline

Fixed Wireless 

(limited mobility)

Broadband

Penetration

4%Penetration 77%

Penetration

2%

Source: internal market researchSource: internal market research

Penetration

12%

Telkom Market Share

99%

57%

46%

71%

14

Content

Telkom Indonesia in Brief

Telco Industry in Indonesia

Business Results (Operational & Financial)

15

Cellular

Business

1Q/09 1Q/10Growth 

(%)   

Cellular

Subscribers (mn) 72.1 82.0 14%

BTS (unit) 27,800 32,243 16%

MoU

(Bn

minutes) 33.1 27.8 16%

MoU/Subs/Month (mnt) 161 114 30%

ARPU –

blended (Rp’000) 47 43 9%

Revenue (Rp

Bn) 8,585 9,101 6%

As of March 31, 2010,   

Telkomsel

maintained its 

leading position in the cellular 

market with 82 mn subscribers 

reflecting

46%46%

full mobility 

market share in Indonesia.

16

Broadband

Services

1Q/09 1Q/10Growth 

(%)   

Fixed wireline

broadband / Speedy:

Subscribers (‘000) 716 1,283 79%

ARPU (Rp’000) 278 233 16%

Revenue (Rp

Bn) 573 830 45%

Mobile broadband / Flash:

User (‘000) 302 2,134 607%

ARPU (Rp’000) ‐ 37 ‐

Revenue (Rp

Bn) 251 690 175%

Broadband services grew 

significantly in 1Q/2010

17

Fixed Wireless Business

1Q/09 1Q/10Growth 

(%)   

Fixed Wireless / Flexi

Subscribers (mn) 13.4 15.9 19%

BTS (unit) 4,540 5,543 22%

MoU

(Bn

minutes) 4.2 3.1 27%

MoU/Subs/Month (mnt) 107 66 38%

ARPU –

blended (Rp’000) 23 17 25%

Revenue (Rp

Bn) 694 673 3%

Flexi maintained its 

leading position in 

CDMA limited mobility 

service with 57% 57% 

market share

18

Fixed Wireline

Business

1Q/09 1Q/10Growth 

(%)   

Fixed Wireline

Line in Service/LIS (mn) 8.7 8.4 3%

ARPU (‘000) 114 106 7%

Revenue (Rp

Bn) 2,981 2,799 6%

As a part of our strategy to mitigate the decrease of fixed wireline

revenue, 

we launched a fixed business improvement program / FBIP.

As of March 31, 2009, there were 1.8 1.8 mnmn

subscribers enrolled in the FBIP 

(reflecting 22% of total wireline

subs).

The total incremental revenue in Q1/2010 generated by FBIP was Rp85 Rp85 BnBn

19

Financial Highlights

Q1/09 *) Q1/10 Growth YoY

(%)

Op. Revenues (Rp.Tn) 15.6 16.6 6.2%

Op. Expenses (Rp.Tn) 10.3 11.3 9.1%

EBITDA (Rp

Tn) 8.6 9.0 5.5%

Net Income (Rp

Tn) 2.5 2.8 13.0%

CAPEX (Rp

Tn) 3.04 3.06 0.8%

CAPEX to Revenue (%) 19.5 18.5 1.0%

ROA (%) 2.7 2.9 0.2%

Debt to Equity/DER (%) 49.6 46.9 2.7%

Net Debt to Equity/Gearing (%) 31.0 29.8 1.2%

In tight competition,

operating revenues increased by 6.2%6.2%

Note:Note:••

In 2010, we present operating revenues from interconnection on aIn 2010, we present operating revenues from interconnection on a

gross basis with interconnection gross basis with interconnection 

charges are presented as part of operating expensescharges are presented as part of operating expenses••

*) re*) re‐‐class to grossclass to gross

20

Revenues and Expenses Contributions

42%

26%23%

7%

40%

30%

20%

6% 2% 1%2% 2%

Cellular Data,internet & IT

Fixed line Intercon Network Others

1Q/09 1Q/10

Expense

was manageable,

and 

personnel expense has decreased by 

1.6%

Expense contribution to 

total expenses Rp11.3 Rp11.3 TnTn

In Q1/2010, data, internet & IT 

services revenues contributed 30%30%

to total revenues (increased by 4%)

Revenue contribution to 

total revenues Rp16.6 Rp16.6 TnTn

34%

29%

8%

4%

18%

7%

35%

30%

9%

4%

17%

6%

O&M Depreciation G&A Marketing Personnel Interconnection

1Q/09 1Q/10

6.5 6.7

4.0 5.0

3.6 3.3

1.1 1.00.3 0.3 0.2 0.3

3.5 4.0

3.0 3.4

0.8 1.0

0.4 0.4

1.9 1.9

0.7 0.7

21

Our New Wave business has grown

significantly (33%)

…and the contribution to total revenues 

reached

14%

(Q1/2010)

from 11% (Q1/2010)

Legacy and New Wave Revenues

13,849 14,243

1,7702,344

Q1/09 Q1/10

Total (Rp. Bn)

15,618 16,587

New Wave Business

33%

Legacy Business

3%

The increasing emphasis on the new wave business 

was the foundation for the Company’s transformation

as of March 31, 2010

22Capacity

Others

Q1/09 Q1/10

Support & IJPA

Legacy

Capital Expenditure

38%3%

76%

54%

21%8%

Q1/09 Q1/10

Telkomsel

Capex

(Rp Bn)

1,517 2,086

Our Capex

to Operating Revenue decreased 

from

19.5% (Q1/2009) to 18.5%

(Q1/2010)

TELKOM

Rp912 bn

TELKOMSEL

Rp2,086 bn

47%

50%

30%

68%

Total (Rp Bn)

3,040 3,063

Other subsidiaries

Rp65 bn

(2%)

New Wave & infrastructure

50%50%

40%

40%

1%

1%

Q1/09 Q1/10

Telkom

Capex

(Rp Bn)

1,431 912

Coverage & Quality

23

Consolidated Debt

To minimize impact on forex

fluctuation, the company has reduced 

foreign debt portion from 29.9% in Q1/2009 to 16.8% in Q1/2010

Forex

Debt in US$ 

has decreased by 

10.9%

in Q1/2010

Q1/09 Q1/10

70.1%

83.1%

19,59518,235Total (Rp. Bn)

5.7%7.9%

IDR/Rupiah

U.S

Dollar

Japanese

Yen

22.0%

11.1%

The current maturity debt (due date in 2010) is 

amounted to 7.8 trillion.

The Company will issue Rupiah‐denominated bonds

in H1/2010 with an amount around Rp3 trillion.

Contact Address :Investor Relations & Corporate Secretary DepartmentGrha

Citra Caraka

5th

floorJl. Jend. Gatot

Subroto

Kav. 52Jakarta, 12710IndonesiaTel 

: +62‐21‐5215109Fax

: +62‐21‐5220500Email

: investor@telkom.co.idWebsite: www.telkom.co.id

Any further questions?