Tlkm Fy14 Earnings Call 160315 Final

8/21/2019 Tlkm Fy14 Earnings Call 160315 Final

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March 16, 2015


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T s ocument may conta n orwar ‐ oo ng statement w t n t e mean ng o sa e‐

harbor. Actual results could differ materially from projections, estimations or

expectations. These may involve risk and uncertainty, and may cause actual resultsan eve opmen o er su s an a y rom ose expresse or mp e n e

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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1. Telkom in Brief

.

3. Company Guidance 2015

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Telkom in Brief

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Telkom Group PortfoliosWell

diversified

business

portfolio:

9 Product Portfolios and

6 Customer

Portfolios

10

1 2Digital Life Digital Home Digital AdvertisingME987 11

• Managed Apps & SI

• BPM

• Premise Integration

• E-Payment

• DataCenter & CloudI

• E-Health

• E-Tourism

• E-Transportation

• E-Gov

Big Data 12

Product

Portfolio

Customer

Portfolio S e r v i c e

s

PlatformPlatformServicesServices

EcosystemEcosystemSolutionSolution

BigBigDataData 654

13

• Fixed Phone

• Fixed Broadband

• Wi-Fi

• Full Mobility

• Limited

Mobility

• Interconnection &

International Traffic

• Network Service

• Satellite•T

14Government

FixedFixed

ServicesServices

MobileMobile

ServicesServices

NW & InfraNW & Infra

ServicesServices 32116

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Telkom and Subsidiaries

Government

52.6%

Public

47.4%

Mobile

BusinessMultimedia

Business

International

Business

Infrastructure

BusinessTIME

T T

Macau Arab Saudi USA Malaysia

ew e an yanmar

Metra

Di italNote :

Investama

Affiliation

: e ecommun ca on

IME : Information, Media & Edutainment

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Telkom Indonesia is listed at

Indonesia Stock Exchange

(Bloomberg: TLKM IJ) and New York

Stock Exchange (Bloomberg: TLK US)Government

52.6%

Public 47.4%

Treasury Shares 2.6%

Total

Shares Market

Capitalization

at

IDX

100,799,996,400 shares

*) as of March 13, 2015

Rp297.9Tn*

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Continued strong revenue growth with healthy margins

Consolidated Revenue grew by 8.1% YoY to Rp89.7tn with 51.1% EBITDA margin

Telkomsel Revenue

grew

by

10.4%

YoY

to

Rp66.3tn with

56.2%

EBITDA

margin

Continued strong revenue growth with healthy margins

Consolidated Revenue grew by 8.1% YoY to Rp89.7tn with 51.1% EBITDA margin

Telkomsel Revenue

grew

by

10.4%

YoY

to

Rp66.3tn with

56.2%

EBITDA

margin

Gaining remarkable subscribers growthGaining remarkable subscribers growth

Broad and users grew 12.1% YoY to 71.3mn

Cellular subscribers grew 6.9% YoY to 140.6mn

Mobile data user grew 12.1% YoY to 67.9mn

Broad and users grew 12.1% YoY to 71.3mn

Cellular subscribers grew 6.9% YoY to 140.6mn

Mobile data user grew 12.1% YoY to 67.9mn

Continued leadership in infrastructure

Fiber based backbone network 76,700 km, Homes passed 13.2 million (61% YoY)

Continued leadership in infrastructure

Fiber based backbone network 76,700 km, Homes passed 13.2 million (61% YoY)

, . , , .

Total 3G BTS 38,836 units (43.7% YoY), New 3G BTS 11,802 units (76% of new BTS)

, . , , .

Total 3G BTS 38,836 units (43.7% YoY), New 3G BTS 11,802 units (76% of new BTS)

Telkom recorded a strong financial and operational results in FY14

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Healthy Revenue Growth on Back of

Revenue YoY (Rp Trillion)▲ 32.9%

▲ 8.1%▲ 6.7% 4.6

4.9

▲ 34.2%

▲ 7.8%Fixed Broadband

Revenue

89.7 ▲24.0%

10.514.1 Mobile Data

Revenue32.134.3

.

▼ 8.5%

▲ 3.3%19.5

24.1

FY13FY14

▼ 2.8%▲ 16.3% ▲2.2%

.

9.7

4.82.4 1.3

.

8.9

4.72.8 1.3

TOTALNote:

1. “ Other” among others consists of CPE, Infrastructure Lease, Directory Assistance and USO.

FY13 FY14 Cellular voiceData, Internet, & IT SMS Fixed line voice Interconnection Other Network

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Manageable Operating Expenses

Operating Expenses YoY (Rp Trillion)

▲ 6.5%▲ 15.3%

19.3

22,3 FY13

▼ 1.2%41.2

43.9

▼ 0.7%

▲ 1.6%▼ 4.6%

9.7 9,6

FY13 FY14

. 4.2

3.0

.4.0

3,1

O&M Personnel Interconnection G&A Marketing

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Healthy EBITDA & Net Income Growth

Net Income R Tn

▲ 9.7% ▲ 3.0%

45.8

14.2

14.

41.8

One-off income from

Telkom Vision divestment in 2013.

Normalized net income growth is 13.4%.

FY13 FY14FY13 FY14

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Telkomsel: Widest coverage

with

3G

Coverage:

± 60%

Papua, Maluku, Papua, Maluku,

Sulawesi, KalimantanSulawesi, Kalimantan

SumateraSumatera

port on:

por on:

Greater Jakarta & Greater Jakarta &

West Java West Java

CB portion:

24%

Java & Bali Java & Bali

CB portion:

26%

8 players (4 GSM + 4 CDMA) in mature industry with estimated 130% SIM penetration

± 75% o ulation‐based . Relativel stable com etition in le ac businesses.

Early stage in data business with around 50% data users and 30% smartphone

penetration.

Tremendous growth in digital business; data traffic grew by more than 100% YoY and

1313

data revenue grew more than 30% in FY‐14.


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Telkomsel: Solid Revenue Growth with Healthy Profitability

+10%

REVENUE

YEAR‐ON

‐YEAR

ACHIEVEMENT

In TrillionCAPEX PAIDEBITDA NET INCOME

In TrillionIn Trillion In Trillion

66.3

15.660.0

11.7 14.512.4

17%17%

Digital

Business34%34%

33.9 37.3

19.417.3

12%12%10%10%

50.648.4FY‐14FY‐13

5%5%Legacy

Margin

56%56%

Margin

29%29%

FY‐13 FY‐14 FY‐14FY‐13

‐ ‐

In Million In Thousand

TOTAL ASSET BTS ROLL OUT BTS ON AIRIn Thousand

CUSTOMERIn Trillion

0.2

15.60.0

15.6+22%

85.4

38.8

0.269.9

27.02%2% 44%44%

78.273.3 140.6131.5

4G

3G

4G

.

4.0

.

3.6

46.442.82G--10%10%

8%8%

‐‐

7%7%

‐ ‐

7%7%2G

FY‐13 FY‐14 FY‐14FY‐13

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Telkomsel: Market leader with increased market share

Cellular Customer Base Share

(BIG‐3 vs others)

Cellular Customer Base Share

(TSEL vs BIG‐3)

BIG‐3 Revenue Share

(TSEL vs BIG‐3)

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Source: Company’s Data, Internal estimation & Market Intelligence


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Telkomsel: Continue to Focus on Digital Business

DIGITAL BUSINESS

REVENUEIn Million

YEAR‐

N‐

YEAR

ACHIEVEMENT

In TrillionDATA USER DATA TRAFFIC

Broadband:

+3415.6

11.7

234.9n

Telkomsel

Flash

BlackBerry67.9

60.5

1.5

.

1.2

10.5

32%32%Digital

Services

Broadband 96.7

143%143% Digital Services:- Digital Lifestyle- Digital Advertising

- Digital Payment & Mobile Banking

12%12%

FY‐14FY‐13 FY‐13 FY‐14

3G CAPABLE

DEVICE

3G & 4G BTS

ROLL OUT

3G & 4G BTS

ON AIR

FY‐13 FY‐14

40.4

In Million In Thousand

0.0

12.0

0.211.6

4G 0.2

39.0

27.0.

FY‐13 FY‐14

71%71%

FY‐14FY‐13

11.6 11.83G2%2%

4G

3G38.8

27.0

0.0

‐‐

44%44%

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IDN: Drive Digital Business

Remarkable Progress

High Speed Broadband Access through Optical Fiber Network & Wifi

• High Speed Optical Access Network

• 13.2 million Homes passed

IP-based and Optical Backbone Network

• 170 Thousands Wi‐Fi

Id‐Ring • IP and Optical Backbone Network• 76,700 km nationwide backbone network

Integrated Next Generation Network for Multi Services & Multi Screen

I ‐Con • 54,800 Square Meter Data Center

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International Expansion:

TIMES International Portfolio

Strengthen Footprint

in

the

Region

Business Process

Outsourcing &

IT Solution

MNOMVNO Satellite &

Network

Data

Center

Malaysia Timor Leste Malaysia Japan Singapore Australia

Brunei Singapore Korea Timor Leste New Zealand

International International

ExpansionExpansion

ong ong

Macau

Hongkong USA

UEA Netherland

Arab Saudi Myanmar Germany

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Timor Leste England


19/22

Company Guidance 2015

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2015 Management Guidance

Mobile Business

3 Main Program : To Be King of Digital

Indonesia Digital Network International Expansion

1. Exploit Legacy Business

2. Strengthen The Core

3. Trigger Digital Services

1. ID‐Ring

2. ID‐Access

3. ID‐Convergence

1. Follow the People

2. Follow the Network

3. Follow the Traffic & Money

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Maintain double digit growth

Grow digital business

Turn-around fixed line

Drive digital business

Stretch & Expand int

l business

Strengthen footprint in regional

n ne w or s g y a ove e mar e or an :

‐ Increase

digital

business’s

portion

close

to

40%

for

Telkom

Group

‐ Strengthen mobile & fixed broadband through triple play and FTTHRevenue

Growth

Slightly decline for TLKM and Telkomsel in line with aggressive

investment in digital business.EBITDA Margin

Grou

:

22% ‐

25% of

Revenue.

Mobile related: 60% ‐ 65%

Fixed broadband related: 20% ‐ 25%

Other business: 10%

Capex

20

Inorganic

80/20 rules,

where

80%

initiatives

to

support

digital

business.


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Tlkm Fy14 Earnings Call 160315 Final

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