PT Telekomunikasi Indonesia Tbk

Full Year 2014 Results

March 2015

Disclaimer

This document may contain forward-looking statement within the meaning of safe-harbor. Actual results could differ materially from projections, estimations orexpectations. These may involve risk and uncertainty, 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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Content

1. Telkom in Brief

2. FY14 Financial and Operational Results

3. Guidance 2015

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Telkom in Brief

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Telkom Group Portfolios

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15 business portfolio: 9 product portfolio and 6 customer portfolio

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

Mobile

Services

NW & Infra

Services

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

Big

Data

Digital Home Digital AdvertisingME

Big Data

654

987

15

14

13

12

11

10

16

Government

Telkom and Subsidiaries

Mobile

BusinessMultimedia

BusinessInternational

BusinessInfrastructure

Business

Singapore Hongkong Timorleste Australia

Macau Arab Saudi USA Malaysia

New Zeland Myanmar

Metra

Digital

Investama

Government

52.6%

Public

47.4%

Affiliation

T IME T T

Note :

T : Telecommunication

IME : Information, Media & Edutainment

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Current OwnershipTelkom Indonesia is listed atIndonesia Stock Exchange (TLKM IJ)and New York Stock Exchange (TLKUS)

Public 47.4%

Government 52.6%

Treasury Shares 2.6%

Total Shares

100,799,996,400 shares

Market Capitalization at IDX

*) as of December 31, 2014

Rp288.8Tn*TOP 4

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FY14 Financial and Operational Results

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Highlights Performance FY14

Continued strong revenue growth with healthy margins Consolidated Revenue grew by 8.1% YoY to Rp89.7tn with 51.1% EBITDA marginTelkomsel Revenue grew by 10.4% YoY to Rp66.3tn with 56.2% EBITDA margin

Gaining remarkable subscribers growthBroadband users grew 45.3% YoY to 40.4mn*)

Cellular subscribers grew 6.9% YoY to 140.6mn*) exclude PAYU

Continued leadership in infrastructureFiber based backbone network 76,700 kmTotal BTS Telkomsel 85,420 units (22.3% YoY), New roll-out BTS 15,556 units.Total 3G BTS Telkomsel 38,836 units (43.7% YoY), New roll-out 3G BTS 11,807 units (1.7%)

Telkom recorded a strong operational and financial results in FY14

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Revenues YoY (Rp Tn)

▲ 8.1%

TOTAL

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Note: “Other” among others consists of CPE, Pay TV, Leased Revenue, Directory Assistance, USO and Modem Sales

▲ 15.7%

83.0

89.7

FY13 FY14

▲6.7%

32.6 32.1

9.7

4.8 2.41.3

37.7

34.3

8.9

4.7 2.8 1.3

Data, Internet, &IT (incl SMS)

Cellular voice Fixed line voice Interconnection Other Network

FY13

FY14

▼ 8.5%

▼ 2.8%▲ 16.3% ▲2.2%

Expenses YoY (Rp Tn)

▲ 9.4%

TOTAL

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55.1

60.3

FY13 FY14

▲ 15.3%

▼ 1.2%

▼ 0.7%

▲ 1.6%▲ 64.1%

▲ 8.6%

▼ 4.6%

19.3

15.8

9.7

4.9 4,2

3.0 (1.9)

22.3

17.1

9.6

4.9 4,0

3.1 (0,7)

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

FY13

FY14

Broadband ServicesRevenues (Rp Tn)

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Data services, especially mobile data, is being the growth driver

Users (Million)

Flash

▲ 12.8%

▲ 80.7%

Fixed Bband

Mobile Data

Fixed Broadband

▲ 7.8%

FY13 FY14

▲ 32.9%

▲ 34.2%

14.1

4.6 4.9

10.5

(Including PAYU)

FY14FY13

Blackberry▼ 22.8%

17.3

7.6

3.0

3.4

5.8

31.2

▲ 45.3%

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1. 8 players (4 GSM + 4 CDMA) and mature telco industry with estimated 130% SIM penetration (± 75% population-based penetration). Relatively stable competition in legacy businesses.

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

3. Tremendous growth in digital business; data traffic grew by more than 100% YoY and data revenue grew more than 30% in FY-14.

Industry Overview

TSEL Population Coverage 2G: ± 95% |

3G: ± 60%

Subscriber Market Share (Estimated)

Source: Company’s Data & Market Intelligence

44%56%

TSEL Others

Sumatera

CB portion: 28%

Greater Jakarta & West Java

CB portion: 24%Java & Bali CB portion: 26%

Papua, Maluku, Sulawesi, KalimantanCB portion: 22%

Cellular Industry: Telkomsel Profile

FY13 FY14 Diff.

TSEL 41% 44% 3ppt

Others 59% 56% -3ppt

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+10%

FY-14

66.3

50.6

15.6

FY-13

60.0

48.4

11.7

REVENUE

0%

FY-14

3.6

11.8

0.2

FY-13

4.0

11.6

0.0

In Million In Thousand

YEAR-ON-YEAR ACHIEVEMENT

In Trillion

FY-14

14.5

FY-13

12.4

CAPEX PAID

TOTAL ASSET BTS ROLL OUT BTS ON AIRIn Thousand

+22%

FY-14

85.4

46.4

0.2

27.0

FY-13

69.9

42.8

38.8

CUSTOMER In Trillion

3G

2G

17%

5%Legacy

Digital

Business

2%

-10%

34%

44%

8%

EBITDA NET INCOMEIn TrillionIn Trillion

Margin

56%56%

Margin

29%29%

FY-14

37.3

FY-13

33.9

17.3

FY-13

19.4

FY-14

12%10%

78.2

FY-13

73.3

FY-14

7%

140.6131.5

FY-14FY-13

7%

Free Cash Flow

Dec-14: Rp16.5tn (Dec-13: Rp17.3tn)

Telkomsel: Solid Revenue Growth with Healthy Profitability

In Trillion

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Debt to Equity Ratio (DER):

Dec-14: 4.4% (Dec-13: 4.5%)*

Dec-14: 15.3% (Dec-13: 15.9%)**

*) excluding obligation under finance lease

**) Including obligation under finance lease

4G

3G

2G

4G

+34%

FY-14

15.6

1.5

14.1

FY-13

11.7

1.2

10.5

DIGITAL BUSINESS

REVENUEIn Million

YEAR-ON-YEAR ACHIEVEMENT

In Trillion

DATA ENABLED

CUSTOMER

32%Digital

Services

Broadband

34%

FY-14

234.9

FY-13

96.7

DATA TRAFFIC

143%

In PB

FY-14

40.4

FY-13

23.7

3G CAPABLE

DEVICE

71%

In Million

FY-14

11.8

FY-13

11.6

3G BTS

ROLL OUT

2%

In Thousand

FY-14

38.8

FY-13

27.0

3G BTS

ON AIR

44%

In Thousand

Broadband:

Telkomsel Flash

BlackBerry

Digital Services:- Digital Lifestyle

- Digital Advertising

- Digital Payment & Mobile Banking

FY-14

67.9

FY-13

60.5

12%

Telkomsel: Continue to Focus on Digital Business

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IDN: Drive Digital Business

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High Speed Broadband Access through Optical Fiber Network & Wifi

IP-based and Optical Backbone Network

Integrated Next Generation Network for Multi Services & Multi Screen

Id-Ring

Indonesia Digital Network

Id-Con

• High Speed Optical Access

Network

• 13.2 million Homes passed

• 170 Thousands WiFi

• IP and Optical Backbone Network

• 76,724 km national & regional

backbone network

• 54,800 Square Meter Data Center

Progress

TIMES International Portfolio

BPO &IT Solution

Mobile Business AllianceMVNO & MNO

International Expansion

International Expasion: Strengthen Footprint in the Region

Borderless “T”

Satellite & Network

CDN / Data

Center

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DiCO(Digital Company)

Guidance 2015

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2015 Company OutlooksContinue to Deliver Value to Shareholders

▪ In line with or slightly above the market for both TLKM Consolidated and TelkomselRevenue Growth

▪ Slightly decline for both TLKM Consolidated and for TelkomselEBITDA Margin

▪ Group (Consolidated): 25-28% over Revenue▪ Allocation:

▪ Mobile related: 60 - 70%▪ Fixed broadband related: 20 - 25%▪ Other business: 10-15%

Capex

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Thank You

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