PT Telkom Indonesia (Persero) TbkThe First Half 2015 (1H15) Results

August 4, 2015

Disclaimer

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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.

Content

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1. Telkom in Brief

2. 1H15 Financial and Operational Results

3. Company Guidance 2015

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Telkom in Brief

Telkom and Subsidiaries

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Mobile Business

Multimedia Business

International Business

Infrastructure Business

Singapore Hongkong Timorleste Australia

Macau Arab Saudi USA Malaysia

New Zeland Myanmar

Government

52.6%

Public

47.4%

Affiliation

T IME T T

Note :T : TelecommunicationIME : Information, Media & Edutainment

Telkom Group Portfolios

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Well diversified business portfolio: 9 Product Portfolios and 6 Customer Portfolios

ProductPortfolio

1

CustomerPortfolio

Serv

ice

s

2

• Fixed Phone

• Fixed Broadband

• WiFi

• Full Mobility

• Limited

Mobility

• Interconnection &

International Traffic

• Network Service

• Satellite

• Tower

Fixed Services

MobileServices

NW & InfraServices

Platform Services

• Managed Apps & SI• BPM• Premise Integration• E-Payment• DataCenter & Cloud• M2M

Digital Life

T

I

321

Ecosystem Solution

• E-Health

• E-Tourism

• E-Transportation

• E-Gov

BigData

Digital Home Digital AdvertisingME

Big Data

654

987

15

14

13

12

11

10

16

Government

Current Ownership

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

Public 47.4%

Government 52.6%

Treasury Shares 2.6%

Total Shares

100,799,996,400 shares

Market Capitalization at IDX

*) as of June 30, 2015

Rp295.3Tn*

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1H15 Financial and Operational Results

1H15 Performance Highlights

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Consolidated Revenue grew by 12.2% Year-on-Year (YoY) with EBITDA and Net Income grew by 6.3% and 2.2% YoY, respectively.

Telkomsel Revenue grew by 13.0%, EBITDA by 10.7%, and Net Income by 14.7% YoY.

Data, Internet, and IT Services (exclude SMS) recorded the highest revenue growth, with 28.3% increase.

Telkomsel’s digital business grew by 37.7%, with data traffic jumped 121.4%.

Telkomsel installed 11,495 new BTS, of which around 90% were 3G/4G BTS

Telkomsel expands its 4G LTE network and services in 7 key cities (Jakarta, Bali, Bandung, Surabaya, Medan, Makassar and Lombok)

1H15 Operational Results

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Telkomsel Operational:

• 3.5 mn net add in H15. Total customers: 144.1 mn• Mobile data payload jumped 121.4%. Smartphone users grew 54.2% to 48.1 million. • Added 11,495 new BTSs in 1H15

Telkom Operational:

• Fixed line subs increase xx% to 10.2 million • Fixed broadband users increased 15.9% YoY to 3.7 million, contributed by IndiHome Triple Play

Strong Revenue Growth, Driven by Data Business

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▲ 12.2%

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

▲ 7.8%

▲28.3%

▼ 5.6%

▲ 36.3% ▼ 6.1%

Revenue YoY (Rp Trillin)

▲ 6.8%

43.5 48.8

1H14 1H15

16.4

11.6

6.6

4.6

1.92.4

17.7

14.9

7.1

4.4

2.5 2.2

Cellular voiceData, Internet, & IT (excl SMS) SMS Fixed line voiceNetwork & Other telco servicesInterconnection

1H14

1H15

Strong Normalized EBITDA & Net Income Growth

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▲ 6.3%▲ 2.2%

EBITDA (Rp Tn) Net Income (Rp Tn)

Without ERP :

EBITDA growth 10.1%

Net Income growth 11.3%.

7.3 7.4

1H14 1H15

22.1 23.5

1H14 1H15

Increased Operating Expenses in line with Infrastructure Development

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Operating Expenses YoY (Rp Trillion)

▲ 14.4%

TOTAL

▲ 30.3%

▼ 23.3%▼ 2.8%▲ 9.2%

▼ 287,6%

▲ 7.7%

▲ 23.0%

Note: others included (gain)/loss on forex

29.5

33.7

1H14 1H15

10.8

8.2

4.8

2.5 1.8

1.5 (1.9)

14.0

8.8

5.9

2.0 2.01.4 (0.7)

O&M D&A Personnel Interconnection G&A Marketing Others

1H14

1H15

ERP amounting Rp844 billion in 1H15

-TSEL BTS increased 21.8%-Additional backbone -Additional IndiHome subs

+13%

1H-15

35.4

25.7

9.7

1H-14

31.3

24.3

7.0

REVENUES

+19%

1H-15

11.5

1.2

9.3

0.9

1H-14

9.7

2.5

7.2

0.0

In Million In Thousand

YEAR-ON-YEAR ACHIEVEMENT

In Trillion

1H-15

5.8

1H-14

6.0

CAPEX

PAID

TOTAL ASSET BTS ROLL OUT BTS ON AIRIn Thousand

+22%

1H15

96.9

47.6

48.2

1.1

1H14

79.6

45.3

34.3

0.0

CUSTOMER In Trillion

6%Legacy

Digital

Business

29%

-50%

38%

41%

5%

EBITDA NET INCOMEIn TrillionIn Trillion

Margin

54%56%

Margin

29%28%

1H-15

19.2

1H-14

17.4

1H-15

10.1

1H-14

8.8

15%11%

1H-15

78.8

1H-14

69.2

14%

1H-14

144.1

1H-15

137.4

5%

In Trillion

3G

2G

4G

3G

2G

4G

-4%

Telkomsel: Triple Double-Digit Growth

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+38%

1H-15

9.7

0.9

8.8

1H-14

7.0

0.7

6.4

DIGITAL BUSINESS REVENUE

In Million

YEAR-ON-YEAR ACHIEVEMENT

In TrillionDATA USER

37%Digital

Services

Broadband

38%

1H-15

207.2

1H-14

93.6

DATA TRAFFIC

121%

In PB

1H-15

48.1

1H-14

31.2

3G/4G CAPABLEDEVICE

54%

In Million

1H-151H-14

3G & 4G BTS ROLL OUT

In Thousand

3G & 4G BTS ON AIR

In Thousand

Broadband:

Telkomsel Flash

BlackBerry

Digital Services:- Digital Lifestyle

- Digital Advertising

- Digital Payment & Mobile Banking

- M2M1H-15

66.1

1H-14

63.3

4%

3G

4G

10.3

9.3

0.97.2

7.2

0.0

29% 3G

4G

49.3

48.2

1.134.3

34.3

0.0

1H-151H-14

41%

Telkomsel: Continued Focus on Digital Business

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▪ On July 6, 2015 Telkomsel officially used 1800 MHz spectrumfor 4G LTE services.

▪ Now available in 7 cities: Jakarta, Bali, Bandung, Surabaya, Medan, Makassar and Lombok. More cities to come.

▪ Current subscribers: 800,000

Strenthen Footprint on 4G LTE

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Recent Development

▪ Review on Interconnection tariff▪ 1800 Mhz spectrum rearrangement:

expected completion by end 2015

International Expansion

▪ To build data center in Jurong Singapore of 20,000 M2

▪ To acquire Guam GTA. Expected closing by end 2015.

Current Development

Indonesia Digital Network

▪Employee: 576 (TLKM) & 161 (TSEL)▪Expenses: Rp844Bn

▪ Rp7 trillion bonds in June 2015▪ Tenor: 7 yrs, 10 yrs, 15 yrs, 30 yrs to

support infrastructure development

HR & Corporate Finance

▪ Id-Ring: 76.000 km fiber backbone▪ Id-Access: o 6.5 million fiber HomepassedoWiFi: 150,000 access point

▪ Id-Conv: 55,000 M2 Data center

Regulation

Mitratel Deal

Early Retirement Program

Telkom Bond I

CSEA is in the process of termination.

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Company Guidance 2015

2015 Management Guidance

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In line with or slightly above the market for TLKM andTelkomsel, with focus on strengthening mobile broadband and accellerated fixed broadband through triple play and FTTH

Revenue Growth

Slightly decline for TLKM and Telkomsel in line with accellerated investment in digital business

EBITDA Margin

Group (Consolidated): around 25% over Revenue▪ Mobile related: 60% - 65%▪ Fixed broadband related: 20% - 25%▪ Other business: 10%

Capex

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Mobile Business

Main Program

Indonesia Digital Network International Expansion

1. Protect 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

✓ Maintain double digit growth

✓ Grow digital business

✓ Turn-around fixed line

✓ Drive digital business

✓ Stretch & Expand int’l business

✓ Strengthen footprint in regional

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Thank You

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Jayalah Indonesia !Jayalah Telkom Indonesia !