Corporate Presentation 1Q20 Results
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Corporate Presentation 1Q20 Results PT Telkom Indonesia (Persero) Tbk July 2020 Disclaimer This document may contain forward-looking statements within the meaning of safe- harbor. Actual results could differ materially from projections, estimations or expectations. These may involve risks and uncertainties, and may cause actual results and development to differ substantially from those expressed or implied in the 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. 2 1Q20 Results Telkom in Brief 1Q20 Financial and Operational Results Board of Directors CEO TELKOM GROUP DIRECTOR DIRECTOR DIRECTOR DIRECTOR RIRIEK HERI SUPRIADI HERLAN DIAN EDI ADRIANSYAH WIDJANARKO RACHMAWAN WITJARA DIRECTOR DIRECTOR DIRECTOR DIRECTOR FM VENUSIANA R BUDI SETYAWAN FAJRIN AFRIWANDI TELKOM TELKOM Group WIJAYA RASYID CEO TELKOMSEL DIRECTOR DIRECTOR DIRECTOR DIRECTOR SETYANTO LEONARDUS EDWARD YING RACHEL GOH RIRIN HANTORO WAHYU WIDARYANI WASONO DIRECTOR DIRECTOR DIRECTOR Telkomsel HENDRI MULYA R. MUHARAM BHARAT ALVA SYAM PERBAWAMUKTI 4 Share Ownership 52.1% 47.9% Government Public Telkom Indonesia is listed at Indonesia Stock Exchange (Bloomberg: TLKM IJ) and New York Stock Exchange (TLK US) Total Shares 99,062,216,600 shares Market Capitalization Rp302 Tn (USD21.7 Bn)* *as of Jun 30, 2020 5 1Q20 Results Telkom in Brief 1Q20 Financial and Operational Results 1Q20 Highlights Covid-19 pandemic has impacted all sectors, including in telecommunication. For Telkom, the degree of impact for each segment is different. Our well diversified revenue portfolios allow us to be less dependent on one particular segment IndiHome continued its strong momentum with revenue increased by 19.7% YoY to Rp5.1 trillion in 1Q20 driven by the increasing number of IndiHome subscribers Telkomsel's digital business grew by 16.3% YoY to Rp15.8 trillion and increased its contribution to total revenue progressively to 70.6% from 61.4% last year. 7 IndiHome and Mobile Digital Services as the Growth Driver 1Q20 1Q20 Revenue YoY 1Q19 (Rp Trillion) 17.8 18.8 16.6 17.5 6.2 1.9% 5.9 34.8 34.2 53.0% 54.9% 17.9% 17.1% 9.0 EBITDA Net Income Rp Trillion Rp Trillion 7.0 5.1 4.2 3.4 2.1 2.2 1.6 Data, Internet & SMS, Fixed & IndiHome Interconnection Network & Other IT Services Cellular Voice 19.7% 27.1% Telco Services 7.2% 21.4% 35.6% 1Q19 1Q20 8 Expenses are Manageable 1Q20 Expense YoY (Rp Trillion) 10.7 1Q19 1Q20 8.3 2.4% 6.8 5.6 22.8 22.3 3.5 3.1 1.5 1.6 1.3 1.3 0.9 0.6 Operation, Personnel Interconnection Marketing General & Depreciation & Maintenance & 10.2% 19.8% 29.3% Administrative Amortization Telco Services 21.5% 21.4% 22.9% 1Q19 1Q20 9 Telkomsel Performance Industry is going toward a healthier and rational condition for the overall telecommunications industry TSEL recorded a positive performance of Revenues, EBITDA & Net Income in 1Q20 YEAR ON YEAR REVENUES EBITDA NET INCOME CAPEX 13.9% In Trillion 1.1% In Trillion In Trillion In Trillion 4.1% 9.0% 22.2 22.4 13.8 12.1 2.5 Digital 2.4 Business 47.3 58.2 7.1 16.3% 6.5 Legacy Margin 55% 62% Margin 29% 32% 23.1% 41.9 32.9 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 TOTAL ASSET CUSTOMER BTS In Trillion In Million 3.6% In Thousand 21.2% 11.1% 108.8 168.6 162.6 219.3 89.7 197.5 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 10 Telkomsel Performance Continue to Focus on Digital Business : Engine of growth and accounted for 71% of Total Revenues YEAR ON YEAR DIGITAL BUSINESS DATA USER DATA USER Digital Business REVENUES In Million CONSUMPTION 16.3% 5.4% In Trillion In MB 42.4% 15.8 13.6 111.1 105.1 6,533 Broadband 16.7% 13.9 11.9 4,588 Digital Services 1.7 2.0 13.6% 1Q191Q19 1Q201Q20 1Q19 1Q20 1Q19 1Q20 DATA TRAFFIC 3G/4G CAPABLE DEVICE 3G & 4G BTS ON AIR In PB In Million In Thousand 41.7% 3.6% 14.8% 169.0 147.2 109.6 113.6 1,950 86.9 4G BTS 65.1 1,376 33.6% 3G BTS 82.1 82.1 ➔ 0.0% 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 11 Fixed Broadband IndiHome Revenue (Rp) 5.1tn ◼ Net additional subscribers 1Q20 252K ◼ Total IndiHome subscribers FY19 7.3 Mn (+31.4%) 19.7% YoY ◼ Dual Play 54% of total subs ◼ Triple Play 46% of total subs ◼ Revenue from add-ons contributed around 14.0% of total Indihome 1Q20 ◼ ARPU 1Q20 Rp240K 12 Enterprise Business Continue to focus on improving the Enterprise Business fundamentals. Revenue (Rp) 4.3tn 31.6 % YoY Prioritize to focus to higher profitability products to get better quality revenues. Contribution to Enterprise Revenue 61% 21% 18% Significant increase in Service Solutions, Data Center & Cloud business, and Enterprise Connectivity Corporate Government SME Segment Segment Segment 13 Wholesale & International Business Wholesale & Growing on the back of tower business. International Business 3.4tn Revenue (Rp) 15.1% YoY Key enabler for other segments, and serve external customers SEA-US 15,000 km from Manado, SEA-ME-WE-5 Indonesia - California, USA 20,000 km from Dumai, Indonesia - Marseille, France Indonesia Global Gateway Connect SEA-ME-WE 5, SEA-US and our domestic network 14 Recent Activities New Accounting Standards Dividend and Changes of BoD and BoC of Telkom ❖ We adopted new Indonesian accounting standards for PSAK 71, 72 and 73 which are ❖ Annual General Meeting of Shareholders (AGMS) mirroring to IFRS 9, 15 and 16. approved the distribution of dividends in the amount of Rp15.26 trillion (payout ratio of 81.78%), equals to ❖ Mainly impacted to lower O&M cost, higher Rp154.1 per share. asset, higher liability, higher depreciation and higher interest charges. ❖ AGMS also approved the changes of the Company's Board of Commissioners and Board of Directors. 15 Thank You PT. Telekomunikasi Indonesia, Tbk. July 2020.