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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
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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
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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)
