2008 investor summit _PT. TELKOM by jianglifang

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									                                  INVESTOR SUMMIT
                                       Corporate Presentation
                          PT Telekomunikasi Indonesia Tbk.




by djoko soesilo (IRCS)
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 does not guarantee that any action, which should have been
taken in reliance on this document will bring specific results as
expected.




                                                                             2
Content


    A. TELKOM in Brief

    B. Telco Industry in Indonesia

    C. Share Price Performance

    D. Operational Performances

    E. Financial Performances

    F. Recent Developments


                                     3
TELKOM Ownership and its business…
As of September 30, 2007 & 2008




                    Goverment                           Public
                    of Indonesia                          Local    7.71 %                 Mostly US
                                                          Foreign 39.85 %
                                                                                          Investors
                            52.44%                                           48.8%
   Treasury Stock
   (480.163.000)


                 Divisions :           TLKM   65%            Division : MM
                 Regional 1-7, Fixed                         Metra, Indonusa,
                 Wireless Network,
                                       SingTel 35%                                Division &
                                                             Infomedia
                 Long Distance                                                    Subsidiaries
                 Subsidiaries


             Fixed Phone               Cellular          Multimedia


             Market leader with          No. 1 mobile     Market Challenger          Market Position
            more than 90% market          operator      with significant growth
                    share

                                                                                                   4
Board of Directors

                      President
                      Director
       Compliance &                          Network
       Risk                                  Solution
       Management                            Director
       Director
                      Rinaldi Firmansyah

       Prasetio                              Ermady Dahlan


Information                                             Finance
Technology                                              Director
& CIO
Director


Indra Utoyo                                             Sudiro Asno


      Human                                  Enterprise &
      Capital &       Consumer               Wholesale
      General         Director               Director
      Affairs
      Director

      Faisal Syam                            Arief Yahya
                      I Nyoman G Wiryanata                            5
Highly Performance Organization lead to Some
Domestic and International Recognitions …

                                       Until September 2008 :
                                            Ranked 1 in the 2007 Annual Report Award (ARA) in
                                            BUMN Non Financial – Listed of Indonesia
                                            The best in Indonesian Financial Reporting Award
                                            (IFRA) for company which has a great loyalty to
                                            Bapepam-LK Regulation
                                            Wealth Added Creator Award 2008, from SWA
                                            Magazine, Stren & Co, SWANETWORK for Best Public
    ARA                 IFRA                Companies Base on Wealth Added Index and Best
                                            Public Companies base on Wealth Added in sector :
                                            infrastructure, utilities & transportation




                                                                                                6
Content


    A. TELKOM in Brief

    B. Telco Industry in Indonesia

    C. Share Price Performance

    D. Operational Performances

    E. Financial Performances

    F. Recent Developments


                                     7
Indonesia : 4th populous country with steady economic
growth

    Population by Age                     Wireless Market Revenue
                                                                            Market Revenue
                                                 34%    31%     83          (Rp. Tr)
                                           31%
                                                                            Growth (%)
                                                        67
                                                 51                  24%
                                           38



                                          2005   2006   2007   2008E



                                                               2005        2006      2007
                                          Economic Growth      5.32%       5.5%      6.32%


                                          Wireless market grew at
4th   most populous nation                5 times economic growth
■     Population: approx. 230 million +
■     Young dynamic population

                                                                                             8
Subscribers growth shared among 11 players


 Subscribers (millions)                                                                                           178
                                                                                    164
                                                        151                                                                      Cellular
                              133                                                                                                PSTN, ISDN, xDSL
  116                                                                                                                            Fixed Wireless




                                                                                                                                     43
                                                                                                      35
                                                                             27
                       18                        20
            9                            10                       10                          11                            12


          2008E                         2009E                    2010E                       2011E                        2012E
                                                                                                          Source: Independent Analyst Reports


                                                11 Operators and Services


 FWL,                       Cellular,     Cellular,
FWA, BB         Cellular    FWA, BB         BB        Cellular         FWA        Cellular     Cellular        Cellular       Cellular      Satellite



                                                                                                                                                        9
Content


    A. TELKOM in Brief

    B. Telco Industry in Indonesia

    C. Share Price Performance

    D. Operational Performances

    E. Financial Performances

    F. Recent Developments


                                     10
TLKM’s Share Price Performance
( 2 Jan – 20 Nov 2008)


   TLKM                                                                IHSG
   12,000                                                               3,000



   10,000                                                               2,500



    8,000                                                               2,000



    6,000                                                               1,500



    4,000                                                               1,000


                                            TLKM
    2,000                                                               500
                                            IHSG

       0                                                                0


             During this period, TLKM share price declined by 43%,
            IHSG declined by 58%

             Compared to others telco operators, TLKM is better than
            ISAT (-55%), EXCL (-59%), FREN (-81%) and BTEL (-87%)
TELKOM as a Biggest Market Cap at IDX

Composition of TLKM’s Market Cap from Total IDX (in %)

  %                                                                                                        Rp.T
  12                                                                                                        250

                          10.8                                                                      10.8
                                   10.2
                 9.9                                                                 9.8
  10    9.7
                                                                       9.4                                  200
                                            8.9      8.9
                197.6                                         8.6
                         194.5
       186.5
   8                              178.4
                                           163.3                      161.3                                 150
                                                    159.1
                                                             155.2
   6                                                                               144.1


                                                                                                            100
                                                                                                 108.9
   4


                                                                                Market Cap (%)              50
   2                                                                            Market Cap (Rp.T)



   0                                                                                                        0
       Jan'08   Feb'08   Mar'08   Apr'08   May'08   Jun'08   Jul'08   Agst'08      Sept'08       Oct'08
Content


    A. TELKOM in Brief

    B. Telco Industry in Indonesia

    C. Share Price Performance

    D. Operational Performances

    E. Financial Performances

    F. Recent Developments


                                     13
Continued Growth in Operations...
As of September 30, 2007 & 2008


       Cellular                    Fixed Wireline          Fixed Wireless         Data & Internet
      Business                           Business                Business               Business

           ▲36%                                                                          ▲184%
             60.5                                                                           593



 44.5

                                                                    ▲63%
                                             ▼2%
                                   8.7                                9.1
                                              8.6

                                                                                   209
                                                           5.6




3Q/07 3Q/08                   3Q/07 3Q/08                 3Q/07 3Q/08             3Q/07 3Q/08
     Cellular Subsc               Fixed Wireline Subs.    Fixed Wireless Subs.      ADSL Speedy Subs.
            in milion                         in milion               in milion                in ‘000
                                                                                                         14
Cellular Business...
As of September 30, 2007 & 2008


   Increasing MoU and
   managing RPM                                                   Better network deployment
   ■    TSEL delivering price elasticity for both voice and sms   ■   Growth of BTS ’07-EoY 08: 26-31%
   ■    Different pricing strategy for different segment will     ■   2008 total BTS will be 25 – 28K
        optimize elasticity factor                                ■   2008 total TRX will be 300 K

                 ▲36%                                                                 ▲27%
                                                                                       25,089
                   60.5                         ▲234%
                                                   59
                                                                           19,767
       44.5




                                      18



   3Q/07 3Q/08                     3Q/07 3Q/08                            3Q/07 3Q/08
           Subscriber                          MoU                            BTS
              in mn                        in bn minutes
                                                                                                         15
Fixed Line Business
As of September 30, 2007 & 2008




               Total                 Fixed Wireline
          Fixed Line                       Business



              ▲24%
               17.7
                                                          Fixed wireline business will focus on
                                             ▼2%
   14.3                                                   enterprise market…
                                   8.7        8.6
                                                          ■   Despite the declining fixed-voice market revenue
                                                              pool, enterprise access & connectivity market
                                                              projected to grow

                                                          ■   TLKM strategy to reduce declining wireline revenue
                                                              is by expanding on enterprise market

  3Q/07 3Q/08                     3Q/07 3Q/08
                  Subs.           Fixed Wireline Subs.
                in milion                     in milion

                                                                                                                 16
Fixed Wireless Business
 As of September 30, 2007 & 2008




                                                          ▲90%
                                                             3,181

                                                                     TELKOM Flexi
                                                                     Fixed Wireless
                                                                        Available in 321 cities
                                                                        with 3,181 BTS
           ▲63%                                                         ARPU (Blended)
                                               1,677                    Rp. 40 K
             9.1                       ▲32%
                                         514
 5.6                         389




3Q/07 3Q/08                3Q/07 3Q/08         3Q/07 3Q/08
Fixed Wireless Subs.               MoU                 BTS
              in milion        in bn seconds           (unit)
                                                                                                  17
Broadband Internet Business...
As of September 30, 2007 & 2008



                              Opportunity in Broadband …
            ▲184%
                              ■   Indonesia has a huge BB market
               593
                              ■   In 2007 TLKM Group grabbed ~70% of BB subscriber

                              ■   Synovate/APJII estimates 2.5 million internet subscribers & 31
                                  million users in 2010




   209                                                      Others
                                                             30%
                                                                     TELKOM
                                                                       65%
                                              Telkomsel
                                                  5%
 3Q/07       3Q/08

  Subscribers                                        Market Share of Broadband
         in 000
                                                                                                   18
Content


    A. TELKOM in Brief

    B. Telco Industry in Indonesia

    C. Share Price Performance

    D. Operational Performances

    E. Financial Performances

    F. Recent Developments


                                     19
Financial Highlights
As of September 30, 2007 & 2008


   in Rp Tr.
                    44.6
    43.6                       Operating
                               Revenues
                                ▲2.2%

                                                          EBITDA (Rp.T)
                                                                    ▼6.2%
                      27.4
                                                          27.7
                                  Operating                       26.0
      23.8
                                  Expenses
                                  ▲15.5%
                                                                            EBITDA Margin
                                                                                   ▼5.2%

                                                                             63.5%
                                                                                     58.3%
         9.8                        Net Income
                         8.9
                                     ▼9.2%

                                  NI / Share = Rp.451.1
                                                          3Q/07   3Q/08      3Q/07   3Q/08
     3Q/07           3Q/08
                                                                                             20
                                                                                             20
Revenues Drivers
As of September 30, 2007 & 2008


 in Rp Tr.                                                                           in Rp Tr.
                                                   Data & Internet
                                                       Speedy subscriber (▲184%)            ▲2.2%
                             ▲9.4%
                                                                                     43.6    44.6
                                  18.3             Cellular
                                                       MoU (▲234%)
                      16.7
                                                       Subscriber (▲36%)


          ▲5.9%
                                                   Network
           10.8                                        Leased Line Revenue (▲231%)
  10.2


                                                ▲32.4%
                                                 0.8
                                          0.6




 3Q/07 3Q/08         3Q/07 3Q/08         3Q/07 3Q/08                                 3Q/07 3Q/08
     Data &             Cellular            Network                                    Operating
     Internet                                                                          Revenue

                                                                                                    21
Expense Drivers
As of September 30, 2007 & 2008


   in Rp Tr.              in Rp Tr.
                                                                                            Operation, Maintenance
          ▲15.5%                                              Depreciation                  & Telecom. Service

           27.4                                                   Telkomsel Network           Telkomsel’s BTS (▲27%)
                                                                  Infrastructure Growth       Telkomsel’s Capacity (▲30%)
                                                                                              Affected in increasing
   23.8                                                                                       frequency fees and repair &
                                                                                              maintenance cost for the
                                                                                              network equipment
                                                 ▲27.7%
                                    ▲13.8%                                                  Marketing
                                                    8.7
                                                                                              Due to increasing
                                        8.0
                                                                                    ▲4.9%     competition (cellular &
                                  7.0         6.8                                             wireless market)
                                                                                      6.5
                                                                              6.2           Personnel
                                                                                              Pension cost increased due
                                                                                              to decreasing the discount
                                                                                              rate for actuary calculation
                                                                                              by 0.25%
                                                               ▲36.0%
                                                                   1.6
                                                            1.2
  3Q/07 3Q/08                 3Q/07 3Q/08     3Q/07 3Q/08   3Q/07 3Q/08      3Q/07 3Q/08

    Operating                 Depreciation      O&M         Marketing        Personnel
    Expense
                                                                                                                             22
Capital Expenditure
As of September 30, 2007 & 2008




                                       CAPEX Absorption in 3Q/08
                                                  (Rp Tr)


                                      14.8


          Optimizing Legacy                                   10.7
          New Wave
          Infrastructure
          Support
                                                      3.9



                                  TELKOM Group       Telkom Telkomsel
                                                 (Unconsolidated)



                                                                        23
Consolidated Debt
 As of September 30, 2007 & 2008



                Yen Euro (1%)                                    Yen
                                                                      Euro (0%)
               1,095 190                                        1,141

                     8%                                             6%
                                                     USD
                                                    3,911
     USD
    5,132                                                    22%
                37%                54%    IDR
                                         7,434                             72%


                                                                                     IDR
                                                                                    12,913

                 3Q/2007                                         3Q/2008
            Total Rp.   13,851 bn                           Total Rp.   17,964 bn
     TELKOM hedged its foreign currency exposures through time deposit placements,
     mainly in US Dollars that covered 24.8% of foreign debts from October 1, 2008 to
     September 30, 2009


                                                                                             24
Increased Positive Cash Flow...
   As of September 30, 2007 & 2008



  in Rp Tr.
                                     3Q/07     3Q/08
Net Cash :
   Operating Activities                19.3      19.0
   Investing Activities               (11.3)    (12.7)
   Financing Activities                (9.7)     (8.9)

Net (Decrease) Increase                (1.7)     (2.6)
in Cash and Cash Equivalents

Cash and Cash Equivalent                8.3      10.1
at Beginning of Year

Cash and Cash Equivalent
                                        6.5       7.6
at End of Period



                                                         25
Content


    A. TELKOM in Brief

    B. Telco Industry in Indonesia

    C. Share Price Performance

    D. Operational Performances

    E. Financial Performances

    F. Recent Developments


                                     26
Recent Developments

Bring world-class Pay            ■ Telkom and Indonusa Telemedia joined forces with PCCW to
TV Services to                     increase the business growth of Pay TV Services in
Indonesia                          Indonesia
                                     ● Available on 3 service delivery platform (broadband internet,
                                       Satellite TV and mobile content)
                                     ● Will service more than 230 million population of Indonesia



Resolution of the       ■ Approve Mr Bobby A.A. Nazief as Commissioner for 5 years
Extraordinary General   ■ Approve the extension of the term of the Company’s Board
Meeting of Shareholders   of Commissioner (until the closing of the Company’s Annual
(September 19, 2008)               General Meeting of Shareholders in 2009)



New Share Buyback                ■ Total funds which be allocated is Rp. 3 Tr
Program                       ■ The funds will be taken from un-appropriated retained earning as
(based on BAPEPAM Regulation)   of December 31, 2007 (Rp. 22.2 Tr).



                                                                                                       27
                          Thank You
                           www.telkom-indonesia.com



by djoko soesilo (IRCS)

								
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