Corporate Presentation
1H17 Results
PT Telkom Indonesia (Persero) TbkAugust 2017
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 uncertainties, 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.
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Board of Directors
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Telkomsel
Telkom
CEO TelkomselRIRIEK ADRIANSYAH
DirectorHERI SUPRIADI
DirectorEDWARD YING SIEW HENG
DirectorALISTAIR D JOHNSTON
DirectorMAS’UD KHAMID
DirectorSUKARDI SILALAHI
DirectorBOB APRIAWAN
CEO TELKOM GROUPALEX J. SINAGA
DirectorHARRY M. ZEN
DirectorHERDIY R. HARMAN
DirectorABDUS SOMAD ARIEF
DirectorDIAN RACHMAWAN
DirectorMONTGOMERY HONG
DirectorZULHELFI ABIDIN
DirectorDAVID BANGUN
DirectorIRFAN TACHRIR
TELKOM in Brief
1H17 Financial & Operational Results
Company Guidance 2017
Share Ownership
5
Government 52.1% Public 47.9%Treasury Stock
1.7 Bn shares
Total Shares
100,799,996,400 shares
Market Capitalization
Rp473.7 Tn (USD35.2Bn)*
Telkom Indonesia is listed at Indonesia Stock Exchange (Bloomberg: TLKM IJ)and New York Stock Exchange (TLK US)
*as of July 26, 2017
TELKOM Introduction
1H17 Financial & Operational Results
Company Guidance 2017
1H17 Performance Highlights
Telkom Indonesia delivered remarkable remark in 1H17, posting triple double-digit growth in Revenue, EBITDA, and Net Income
of 13.4%, 15.4%,and 21.9% YoY respectively.
Data, Internet & IT Services sharply increased close to 20.0% YoY. This segment contributed 42.4% to total revenue.
Telkomsel recorded another triple double-digit growth with Revenue
grew by 11.9%, EBITDA 14.0%, and Net Income 15.6% respectively.
Telkomsel installed 17,538 new BTSs, all of which are 3G/4G BTSs toenhance mobile broadband experience.
7
28.8
33.2
Strong EBITDA & Net Income Growthwith Healthy Margins
EBITDA YoY(Rp Trillion)
Net Income YoY(Rp Trillion)
15.4%
Margin17.6% 18.9%
21.9%
1H16 1H17
8
Margin51.9%51.0%
1H16 1H17
9.9
12.1
22.6
25.1
3.9
1.93.0
27.126.0
3.72.7
4.6
Strong Revenue Growth, Driven by Data Business
56.5
64.0
1H16 1H17
13.4%
Revenue YoY (Rp Trillion)
Data, Internet & IT Services
19.8%
Cellular Voice and SMS
3.6%
Fixed Line Voice
5.7%
Interconnection
41.8%Network & Other Telco Services
54.4%
Note: SMS included SMS Banking and SMS advertising 1H171H169
16.2
6.4
1.4 1.7 1.9
8.7
18.4
6.7
1.42.1 2.2
9.6
10
Moderate Growth in Expenses
Expenses YoY (Rp Trillion)
O & M
13.8%Personnel
4.8%Interconnection
0.2%Marketing
18.6%G & A
13.7%D & A
10.2%
1H171H16
36.6
40.2
1H16 1H17
10.0%
REVENUES
In Million
YEAR-ON-YEAR ACHIEVEMENT
In TrillionCAPEX
TOTAL ASSET BTS ON AIRIn Thousand
CUSTOMER In Trillion
Legacy
Digital
Business
EBITDA NET INCOMEIn TrillionIn Trillion
Margin
59%
Margin
34%33%
In Trillion
Maintained Strong Performance Momentum during 2017
TSEL: PERFORMANCE HIGHLIGHTS
11
-1%
26.9 27.9
14.218.1
1H16 1H17
41.146.0
+12%
+27%SS
+4%1H16 1H17
+14%
23.8
27.2
1H16 1H17
13.4
15.5
+16%
1H16 1H17
6.0
6.5+9%
1H16 1H17
+3%
78.9
80.9
1H16 1H17
157.4
178.0
+13%
1H16 1H17
118.7
146.6
+24%
58%
DIGITAL BUSINESS
REVENUEIn MillionIn Trillion
DATA USER DATA TRAFFIC In PB
3G/4G CAPABLE
DEVICE In Million
3G & 4G BTS
ON AIR In Thousand
Digital Business:
Continue to Focus on Digital Business
TSEL: PERFORMANCE HIGHLIGHTS
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1.3 1.8
12.9
16.3
1H16 1H17
Digital Services
Broadband
14.2
18.1+27%
+26%
+33%
1H16 1H17
76.2
101.7
+34%
1H16 1H17
369.7
808.4
+119%
1H16 1H17
70.1
90.0
+28%
63.978.4
4.9
17.8
1H16 1H17
3G
4G
68.8
96.2
+40%
YEAR-ON-YEAR ACHIEVEMENT
+262%
+23%
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Excellent Operational Results
◼ IndiHome subs reached 2.0 Mnincreased 34.2% YoY
◼ More content including video streaming platform and attractive features such as Movin’.
◼ ARPU in 2Q17 Rp344K (vs Rp350K in 1Q17)
◼ Fixed broadband users (incl. non-IndiHome) increased 4.7% YoY to 4.5 Mn
◼ 3G/4G-capable device users: 89.9 mn(+28.3% YoY). 29.7 mn has enjoyed 4G.
◼ Mobile data payload jumped 118.7% YoY to 827,800 TB.
◼ Added 17,538 new BTSs (all are 3G/4G). Total BTS 147K (66% 3G/4G).
◼ 4G LTE Service: 482 municipal cities across Indonesia, 18K BTS
◼ Total customers: 178.0 mn, increased13.1% YoY.
TELKOM Operational
Telkomsel Operational
Progress Indonesia Digital Network 1H17
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Maps of Indonesia Backbone Network
Fiber Optic Backbone
◼ Length: 107,961 Km ◼ Submarine 37.1K km, Terestrial: 70.8 km
SEA-ME-WE-5
20,000 km from Dumai, Indonesia - Marseille, France
SEA-US
14,400 km from Manado, Indonesia - California, USAExpected completion Q3 2017
IGG
Indonesia Global GatewayConnect SEA-ME-WE 5, SEA-US and our domestic network
TELKOM 1
TELKOM 3SLaunch Feb17
TELKOM 2 TELKOM 4Est. Launch Q3/18
TELKOM’s
Satellite
101.8K sqm Tier-II, III & IV Data Center
355.8Kwifi.id access points
146,571TSEL BTS incl. 17,837 4G BTS
Big Data & Analytics
APIFactory
Internet ofThings17.2mio
Fiber homepass
2 mioLIS Indihome Fiber
TELKOM in Introduction
1H17 Operational & Financial Results
Company Guidance 2017
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2017 Guidance
Customer Experience Digital Business Inorganic
Leading Digital
Capability to Provide
Excellent Customer
Experience
Champion of Digital
inHome, Personal,
Enterprise and
Wholesale Services
Smart Inorganic
Growth
MAIN PROGRAM
Revenue
Growth
EBITDA &
Net Income Margins CAPEX
To grow better than industry.Telco industry is expected to grow at mid to high single digit in 2017.
To slightly decline as Telkom is shifting towards digital telco company with higher proportion of revenue from digital business and lower revenue portion from legacy (voice and SMS services)
Around 23%-25% of revenue with focus onbroadband infrastructures, both mobile and fixed line
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PT Telkom Indonesia (Persero) Tbk
August 2017
Thank You
