Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk Q4 FY2020 earnings call

• Telkom successfully managed business and financial performance in 2020 despite COVID-19. - Consolidated revenue up 0.7% to IDR136.5T. - EBITDA grew 11.2%, margin up to 52.8%. - Net income up 11.5% to 20.83T with margin 15.2% (up from 13.8%). - IndiHome as growth engine: revenue IDR22.2T, +21.2%, contribution to consolidated revenue 16% (up from 14%). - IndiHome EBITDA margin 38.9% (up from 33.9%). - Subscribers for IndiHome grew 14.5% to 8M with ARPU improvement.

Consolidated revenue was IDR136.5 trillion, increased 0.7% from previous year. EBITDA grew by 11.2% with margin from 47.8% to 52.8%. Net income increased by 11.5% to 20.83% with net income margin at 15.2% from 13.8%. IndiHome contributed IDR22.2 trillion, grew by 21.2% with 16% contribution to consolidated revenue (up from 14% last year). IndiHome EBITDA margin reached 38.9% (up from 33.9% last year). Total subscribers for IndiHome grew by 14.5% to 8 million via improved ARPU, with ads-on revenue growing 27.8%.

• Expected low to mid-single digit growth in revenue overall. - EBITDA margin expected to be stable. - 5G rollout in 2021 to be selective, both B2B and B2C in certain areas.

• Competition in mobile and IndiHome spaces could pose risks. - Impact of accounting changes like PSAK 72 on revenue classification. - Uncertainties with COVID-19 affecting enterprise business performance.

Q: On mobile, talk about competitive dynamics in the industry and outlook for 2021; and network rollout plans for 20MHz in 2.3 and 5G launch.

A: Rachel Goh addressed mobile competition, stating Telkom adjusted strategy to protect market position and review pricing. Setyanto Hantoro mentioned 20MHz acquisition for strengthening 4G and preparing 5G, with 5G launch in 2021.

Q: On IndiHome competition, risks to ARPU and subscriber targets; enterprise business outlook; OPEX trend.

A: Setyanto Hantoro said IndiHome faces manageable competition with strong fiber; Ririek Adriansyah discussed enterprise business uncertainties and OPEX trends related to network and digitalization.

Q: On Telkomsel capital allocation strategy, digital investments balance; 5G rollout details.

A: Ririek Adriansyah talked about capital allocation alignment with revenue; Leonardus Wahyu Wasono and others discussed digital investments and 5G being selective in 2021.

Q: On EBITDA margin breakdown by business pillar; PSAK 72 impact on data revenue; 5G rollout selectivity.

A: Setyanto Hantoro mentioned EBITDA margin details are complex due to common assets; unidentified rep explained PSAK 72 impact on data revenue; Setyanto Hantoro said 5G rollout is selective in 2021.

Q: On IndiHome home pause/pullback, synergy with Gojek, Mitratel organic growth; Telkomsel towers, capital deployment; Gojek investment, data center IPO.

A: Rachel Goh and Heri Supriadi discussed IndiHome metrics; Setyanto Hantoro talked about Gojek synergy and Mitratel IPO; Sunam discussed Telkomsel towers; Leonardus Wahyu Wasono and others discussed capital deployment and data center IPO plans.