Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk Q3 FY2022 earnings call

• Telkom is navigating challenging macroeconomic conditions post-COVID, adjusting FMC timeline for B2C telco market. - Exploring collaborations in data center and cloud with Microsoft, Singtel; restructuring data center business under PT Telkom Data Ekosistem. - Pursuing infrastructure value unlock starting from tower, expanding fiber optic connection. - Mobile segment (Telkomsel) focusing on customer value, fixed broadband (IndiHome) adding customers, enterprise and wholesale/international showing growth. - Implemented 5 Bold Moves strategy including FMC initiatives, data center/cloud restructuring, infrastructure value unlock, etc.

In the 9 months of 2022, Telkom's revenue grew 2.7%. The mobile segment (Telkomsel) had revenue growth of 1.6% y-o-y with an EBITDA margin of 37.1% and net income margin of 25.4%. The fixed broadband business (IndiHome) added 138,000 customers, reaching 9 million subscribers, with revenue of IDR 20.9 trillion, a growth of 6.4% and blended ARPU of IDR 269,000. The enterprise segment contributed IDR 13.7 trillion in revenue, slightly declined by 0.8% y-o-y but grew 10.5% q-o-q. The wholesale and international business segment posted revenue of IDR 11.3 trillion, significantly increased by 7.6% y-o-y, driven by international wholesale voice and digital business.

• FMC: In process of finding best business model with advisers, leveraging features like Orbit and Smooa. - Data Center: Restructuring to complete in 2024, offering products/solutions integrated with Telkom network. - InfraCo: Expanding fiber optic, exploring new models, aiming to optimize CapEx and achieve strategic differentiation.

• Intense competition in B2C telco market affecting growth. - Higher inflation and interest rate hikes impacting affordability. - Potential risks in opening infrastructure assets to competitors, need for balance in InfraCo expansion.

Q: On mobile, what's driving subscriber decline and if subs decline stabilized?

A: Consolidation for quality customers, focus on CVM approach to drive productivity.

Q: On InfraCo, strategic intent and assets?

A: Regulatory compliance, optimize investment, potential to lease to other operators.

Q: On dividend, will it be from normalized profit?

A: Consider shareholder interests, propose dividend comparable to industry.

Q: On mobile price increases and outlook?

A: Leading healthier market direction, on search for optimal pricing mindful of macro conditions.

Q: On broadband growth slowdown and competition?

A: Selective in choosing subscribers, pursuing FMC for more efficiency.

Q: On InfraCo IPO plans?

A: Currently not on plan, start with private and strategic investors first.