Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk Q2 FY2021 earnings call

• Amidst COVID-19, Telkom recorded IDR 69.5 trillion revenue, up 3.9% y-o-y; expenses grew at 2.8%, EBITDA up 4.7%, net income up 13.3% y-o-y. - IndiHome was growth engine, revenue 12.9T, up 24.2%, EBITDA margin 47.6% (vs 38.6% in H1 2020). - Telkom collaborated with digital and tech companies, e.g., invested in Gojek, signed MoU with Microsoft. - MDI portfolio showed strong performance, invested in over 50 start-ups in 12 countries. - Data center contributed IDR 713 billion in H1 2021, up 11.7% y-o-y; developing Hyperscale Data Center near Jakarta. - Mitratel booked revenue IDR 3.2 trillion in H1 2021, up 10.9% y-o-y, EBITDA margin 76.8%.

IndiHome: Revenue reached IDR 12.9 trillion, grew by 24.2%, contributing 18.5% to consolidated revenue. Telkomsel: Revenue in Q2 2021 grew by 3.5%, Digital Business contributed 77.3% of revenue. Enterprise segment: Grew by 12.2% to IDR 8.7 trillion, with IT Services and Enterprise Connectivity solution as major contributors. Wholesale and International Business segment: Recorded revenue of IDR 6.9 trillion, increased by 1.2% year-on-year, supported by tower business, data center and A2P services.

• Expect consolidated revenue to grow by low- to mid-single digit. - EBITDA margin expected to be relatively stable. - Capital expenditure or CapEx for the group expected to be around 25% of revenue, excluding additional CapEx on 5G.

• COVID-19 pandemic causing lower spending power, potentially affecting ARPU development. - Risk of smaller mobile players adjusting prices due to lower consumer spending power, impacting competition dynamics.

Q: On mobile business competitive dynamics, are tariff hikes sustainable and what are other levers for ARPU development?

A: Tariff hikes started in stages, expecting ARPU to stabilize then improve despite COVID headwinds.

Q: On data center CapEx for Hyperscale Data Center, is $70 million for first phase?

A: $70 million is for first phase, includes land acquisition, and capacity is being presold.

Q: On OpEx items like G&A and personnel expenses jumping, any one-off bookings?

A: Increase in G&A due to consultancy etc., personnel cost related to last year bonus and pension benefit changes, not one-off.

Q: On MDI investments, size of stakes in unicorns?

A: Size of stakes varies by start-up, MDI has $900 million AUM with potential to increase investment.

Q: On Microsoft deal, expected targets?

A: No specific targets on additional revenues or cost savings yet, but exploring cooperation in intelligent infrastructure, digital talent etc.