Infomemo PT Telekomunikasi Indonesia 9M12

7/29/2019 Infomemo PT Telekomunikasi Indonesia 9M12

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Investor RelationsPT Telekomunikasi Indonesia TbkGrha Citra Caraka, 5th FloorJl. Gatot Subroto No. 52, JakartaPhone : 62 21 5215109Fax : 62 21 5220500Email : [email protected] : www.telkom.co. id

DISCLAIMERThis document contains financial conditions and result of operation, and may also contain certain projections, plans,strategies, and objectives of the Company, which would be treated as forward looking statements within the meaning ofapplicable law. Forward looking statements, by their nature, involve risk and uncertainty that could cause actual resultsand development to differ materially from those expressed or implied in these statements. Telkom Indonesia does notguarantee that any action, which may have been taken in reliance on this document, will bring specific results asexpected.

N I N E M O N T H S O F 2 0 1 2 R E S U L T S ( U N A U D I T E D ) TICKERS:IDX : TLKMNYSE : TLKLSE : TKID

ISSUED SHARES:20,159,999,280 shares

SHAREHOLDER COMPOSITION:Govt. of Indonesia : 53.9%Public : 46.1%Excl. Treasury stock 1,006,430,460 shares.

CONVERSION RATES (US$ 1.00):September 30, 2012 = Rp9,570.0September 30, 2011 = Rp8,790.0

FINANCIAL PERFORMANCERevenue(in Rp. Bn)

OPERATIONAL PERFORMANCESubscribers (million)

Highlight Telkomsel recorded strong financial results with double digit growth. Revenue grew 10.6%

YoY to Rp39.9 trillion, EBITDA grew 10.4%YoY to Rp22.7 trillion, and net income increased23.3%YoY to Rp11.7 trillion. Telkomsel strong performance is a result of substantial dataservices growth combined with a well maintained basic service.

Our broadband users grew more than double compared to last quarters growth. It grew by42.5% YoY to 15.9 million users.

Cellular customer base increased by 16.6% YoY to 121.5 million, with total net-add 14.5million in 9M12.

Telkomsel BTS reached 51,005 units on air, including 13,415 3G Node-B, an increase of24.3% YoY. We added 3,752 new BTSs in 3Q12 only, an average of more than 1,000 BTSper month.

Telkom consolidated Net Income increased by 19.3% YoY to Rp10.0 trillion.

Financial Highlights

Operational Highlights


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NINE MONTHS 2012 RESULTS (UNAUDITED)

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PT TELEKOMUNIKASI INDONESIA, Tbk.NINE MONTHS 2012 RESULTS (UNAUDITED)

The following analysis and discussion is based on our Indonesian GAAP financial statements for thenine months ended September 30, 2011 and 2012. The reports have been submitted to IndonesiaStock Exchange, BAPEPAM-LK, the Indonesia Capital Market and Financial Institutions SupervisoryAgency, and to US Securities and Exchange Commission.

FINANCIAL RESULTS

Revenues

We made total revenue of Rp56.9 trillion in 9M12, an increase of 7.6% YoY. Cellular voice revenuesis still the largest contributor followed by Data, internet and IT Services as the second contributor.Total revenue increased by 6.5% QoQ with the following details are as follows:

Cellular voice revenues increased by 6.2% QoQ resulting from the increase of local and longdistance usage revenue due to Ramadhan and Lebaran season.

Fixed line voice revenues, consisted of fixed wireline and fixed wireless voice revenues,decreased by 7.6% QoQ.

o Fixed wireline voice revenue decreased by 7.7% or amounting to Rp186.9 billion triggeredby decrease in local and long distance usage revenue.

o Fixed wireless voice revenue decreased by 7.5% or amounting to Rp24.0 billion triggeredby decrease in prepaid and postpaid usage revenue.

Data, Internet & IT Services revenues increased 10.9% QoQ. The increase was contributedmostly by domestic cellular SMS and cellular data revenue.

Interconnection revenues increased by 14.0% QoQ or amounting to Rp145.1 billion mostlyderived from local incoming cellular interconnection revenue.

Network revenues decreased by 3.9% QoQ or amounting to Rp12.3 billion mostly triggered bydecrease in leased lines and transponder revenue.

Other revenues increased by 16.3% QoQ or amounting to Rp117.1 billion. The increase mostlycontributed by CPE, USO & tower lease revenue.


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Expenses

Compared to last quarter results, total expenses slightly increased by 2.0% with the following details:

Operation, Maintenance & Telecommunication Services expenses increased by 6.7% QoQ oramounting to Rp290.4 billion. This increase derived from customer CPE, cost of IT services,operation and maintenance antenna and tower expense. The increase was still closely related tothe acceleration of infrastructures have been built and the growing IT service business. Duringthird quarter 2012, we managed to save O&M expenses for base station, related outsourcing andelectricity.

Personnel expenses increased by 0.7% QoQ or amounting to Rp15.6 billion mostly due to theincrease of quarterly incentives expense.

Interconnection expenses increased by 9.6% QoQ or amounting to Rp109.2 billion mainly due

to the increase in domestic cellular interconnection expense.

Marketing expenses decreased by 9.3% QoQ or amounting to Rp76.4 billion mainly due todecrease in advertising and promotions expense.

General & Administrative expenses decreased by 11.3% QoQ or amounting to Rp97.5 billion.The decrease occurred since there was severence payment for the former BoD and BoC bookedin the second quarter.

Depreciation & Amortization expenses slighty increased by 3.8% QoQ or amounting toRp131.8 billion was derived from depreciation of transmission equipment, power supply & dataprocessing equipment.

EBITDA, EBITDA Margin and Net Income

Nine-month 2012 EBITDA increased by 10.4% YoY to Rp 29.9 trillion and 10.1% QoQ to Rp10.6trillion. This was due the higher increase in revenue rather than the expenses growth. The resultingEBITDA margin for 9M12 and 3Q12 increased 1.3% YoY and 1.8% QoQ, to 52.6% and 52.8%,respectively.

Net Income for 9M12 increased by 19.3% YoY to Rp10.0 trillion and increased 15.0% QoQ toRp3.6 trillion.

The basis to calculate the EBITDA is the expenses without loss on forex - net, share of loss ofassociated company, others - net and depreciation & amortization expenses.


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Financial Position

Increase in assets by 3.8% QoQ was a result of:

Increase in Current assets. This was mainly due to the increase in short term deposit andother receivables.

Slightly decrease in Non-current assets. This was mainly driven by the decrease in non-current prepayment.

Decrease in Liabilities by 2.5% QoQ was a result of:

Decrease in Non-current liabilities. This was mostly contributed by the decrease in banksloans.

Increase in Current Liabilities. This was attributable to the increase of accrued operations andmaintenance expenses.

Increase in non-controlling interest and equity was mainly due to increase in net income forcurrent period.

Cash Flow

Net cash generated from operations increased by 9.9% YoY as a result of the cash revenuereceived from customers.

Net cash used for investment increased by 3.2% YoY mostly due to the increase in cash spent forfixed assets acquisition.

Net cash used for financing activities increased by 0.4% YoY. This was driven by the increase ofcash out for dividend for 2011 financial year.


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Debts

Gearing

Telkom debts consisted of Two-Step Loans, Bonds, Notes and Banks Loans. During the third quarter2012, Telkom made repayment of Banks Loans, MTN and Notes of Rp146.9 billion, Rp57.7 billionand Rp61.6 billion, respectively. Telkom made new debts for working capital purposes in the form ofNotes amounting Rp778 billion.

Financial Ratio

Telkomsel Financial ResultFinancial Results

For the first nine months of 2012 Telkomsel showed solid financial performance indicated by:

Operating revenues increased 10.6% YoY to Rp 39.9 trillion included non-voice (SMS/data/VAS)revenues that increased 15.3% YoY to Rp 15.1 trillion. EBITDA reached Rp22.7 trillion and Profit was Rp11.7 trillion, 10.4% and 23.3% YoY growth

respectively.

In the following table, we present a summary of YoY and QoQ comparison of Telkomsel financialresults:


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Statement of Comprehensive Income

Operating revenues of Rp39.9 trillion were recorded in 9M12, an increase of 10.6% YoY or 9.9%QoQ, which is the highest growth for the last fourteen quarters.

Postpaid revenuedecreased 1.9% YoY to Rp3.2 trillion in 9M12 due to a lower subscriber base.

Prepaid revenue increased 12.3% YoY to Rp33.1 trillion in 9M12 and grew 9.8% QoQ in 3Q12,

which was contributed by increase in revenues of voice, SMS and data services altogether.

International roaming revenuesincreased 3.8% YoY to Rp0.5 trillion. It increased 12.9% QoQ due

to increase in outbound traffic.

Interconnection revenuesincreased 12.0% YoY to Rp2.6 trillion and 17.2% QoQ to, as a result of

the implementation of SMS interconnection that commenced in June 2012.

Other revenues resulted from network lease and USO compensation fee totaling of Rp368.5

billion.

We continued our cost-based optimization program. Until the 9M12 period,expenses increased onlyby 5.5% YoY and 6.0% QoQ to Rp24.21 trillion, down 3 points percentage compared to YoY growthin the same period last year. The growth of expenses, both YoY and QoQ, was much lower thanrevenue growth that grew 10.6% YoY and 9.9% QoQ.

Personnel expensesincreased 23.9% YoY to Rp1.5 trillion and 8.4% growth QoQ, mainly due to

the impact of remuneration adjustment, monthly allocation of employee allowances and

organization restructuring.

Operation & maintenance expenses increased 4.6% YoY to Rp8.2 trillion and was 3.2% higher

QoQ. The YoY and QoQ growth was mainly due to increase in payment for network space rental.

As a result of our effort to optimize the operational cost, this year we managed to lower down our

power supply costs (electricity cost) by 13% compared to last year.

General & administration expenses increased by 9.1% YoY to Rp673.8 billion mostly on rental

expenses.

Marketing expensesdecreased 7.5% YoY to Rp1.5 trillion, which was mainly due to decrease in

advertising and promotional activities due to relatively stable competition. Compared to 2Q12,

marketing expenses in 3Q12 were 9.0% higher due to Ramadhan and Lebaran seasons.

Interconnection charge (domestic and international) increased 21.5% to Rp2.4 trillion mostly due

to implementation of SMS interconnection tariff. It increased 18.7% QoQ.

Cost of Servicesgrew 29.7% YoY to Rp2.9 trillion in 9M12 mainly due to increase in data access

fee for Blackberry services. It increased 6.1% QoQ due to increase in cost of card (in line with

sales increase) and concession fee.

Depreciation expenses decreased 5.9% YoY to Rp7.1 trillion and increased 6% from previous

quarter related to network infrastructures growth.

Net finance costs (interest income and financing charges) declined 100% YoY mainly because ofdecrease in financing charges due to debt repayment in 2011.


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EBITDA increased by 10.4% YoY as part of efficiency efforts and improvement on revenue growth,while Profit increased by 23.3% YoY. EBITDA margin remained stable at 57%.

Statement of Financial Position

Total Assets increased by 1.8% to Rp58.9 trillion. Total liabilities decreased by 16.3% to Rp19.1trillion, while total equity increased 13.6% to Rp39.8 trillion.

Current assets increased 14.8% to Rp10.8 trillion, mainly due to increase in cash and cash

equivalent.

Fixed assets recorded at Rp45.2 trillion, slightly decreased compared to last year at Rp45.9

trillion.

Current liabilities decreased 6.2% to Rp14.2 trillion following the decline in dividend payable.

Non-current liabilities decreased 36.1% to Rp4.9 trillion, mainly due to repayment of loans.

As of September 30, 2012 Telkomsel had Rp3.6 trillion loans outstanding, which Rp1.5 trillion was

presented as current liabilities and Rp2.1 trillion as non-current liabilities.

Cash Flow

Net cash generated from operations in 9M12 was Rp21.2 trillion, increased 14.3% compared to9M11. Cash flow for investing activities, which was mostly spent for the acquisition of property, plant,and equipment, increased 25.6% to Rp6.7 trillion (approximately USD 698 million).Net cash used infinancing activities decreased 24% to Rp2.1 trillion.

In Rp. Billion 9M-12 9M-11

Cash Flow from Operating Activities 21,248 18,592

Cash Flow for Investing Activities (6,698) (5,334)

Cash Flow from Financing Activities (2,120) (2,792)

Dividend (9,900) (6,755)

Net Increase in Cash & Cash Equivalents 2,530 3,711

Effect of Foreign Exchange Rate Changes 46 (12)

Cash and Cash Equivalents at Beginning of Periods 4,223 1,222

Cash and Cash Equivalents at End of Periods 6,800 4,921

Addition to Fixed Assets (incl. CIP) 7,000 5,426

STATEMENT OF CASHFLOW

AS OF SEPTEMBER 30, 2012 AND 2011

(In Billions of Rupiah)

Loan/DebtTelkomsel has to observe certain agreed financial covenants related to its loans/debts. As ofSeptember 30, 2012 these covenants were as follows:

Covenants t/b maintained Required Actual

Bank Loans EBITDA to debt service 1.25 7.25

Debt to tangible net worth 2.00 0.09

Ratings

In September 2012, rating issued by Moodys, S&P and Fitch are as follows:Local Currency Foreign Currency Outlook

Moodys Baa1 - StableS&P BBB- - StableFitch BBB+ BBB Stable/Stable


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OPERATIONAL RESULTS

Broadband/Data Services

Customer Base Mobile Broadband/Data Services

Telkomsel data users (Blackberry, Flash and GPRS/PAYU) reached 51 million, increased 47.2%YoY. The BlackBerry users still recorded a strong growth with 68.7% YoY or 26.4% QoQ growthin September 2012. Our Flash broadband subscriber also showed a significant growth 45.6%YoY.

Fixed Broadband2.1 million users, an increase of 8.9% QoQ.

ARPU & Traffic Production

Mobile BroadbandWith the additional of Telkomsel data users, data traffic/payload has shown a solid growth of89.2% from the same period last year at 36,227 terabytes.

Fixed Broadband 3Q12 ARPU was Rp174 thousand, a 5.9% decrease compared to ARPU of previous quarter. 9M12 ARPU was Rp182 thousand, a 4.1% increase YoY. Additional Speedy user during 2012 brought Speedy revenue achieved Rp3.2 trillion in 9M12,

an increase of 6.0% YoY.

Cellular Services

Customer BaseTelkomsel continued to record a strong net add in3Q12 with 4.24 million new customers, resulting atotal net-add for 9M12 of 14.5 million newcustomers. This 9M12 net-add achievementalready past the full year 2011 net-add by 11%.As of September 2012, Telkomsel served 121.5million customers, consisting of 2.2 millionpostpaid and 119.3 million prepaid customers. Itgrew strongly by 16.6% from a year ago or 3.6%from previous quarter.

Traffic Production & ARPU

Total outgoing minutes (MoU, chargeable and non-chargeable) continued to increase in 3Q12. It grew7.8% compared to 2Q12, mainly due to school and Lebaran holidays during the quarter. Total MoUproduction for 9M12 reached 136.6 billion minutes, an increase of 9.9% YoY. Average RPM of 9M12was relatively stable at Rp158.

Total SMS production in 3Q12 decreased slightly 1.1% particularly due to impact of SMSinterconnection regulation, while total SMS production for 9M12 increased 14.9% to 190.0 billionunits. For the nine months 2012, revenue per SMS reached Rp52, which was 13.0% higher than9M11.

Blended ARPU increased 2.7% in 3Q12 compared to previous quarter result. This increase relatedwith Ramadhan festive in August 2012. For 9M12, it was Rp37,000.


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Network DevelopmentWe have expedited our network development plan with more focus on 3G network deployment. In3Q12, Telkomsel added 3,752 units new BTS (an average of more than 1,000 BTS per month), ofwhich 2,252 units were 3G Node-B. This underlines our commitment to achieve the 100 broadband

cities program by the end of this year. By end of September 2012, we had 51,005 BTSs on air (YoYincrease 24.3%), including 13,415 3G Node-B (YoY increase 48.5%).

The following table presents a comparison of our cellular business performance:

Fixed Line Services

Customer Base

Fixed Wireline8.9 million customers, 4.0% growth from last year and slightly increase 0.9% from last quarter.

Fixed Wireless

16.8 million customers at the end of 9M12, consisting of 428 thousand postpaid subscribers and16.3 million prepaid subscribers. Compare to previous quarter, fixed wireless customersincreased by 3.4%.

ARPU

Fixed Wireline3Q12 ARPU was at Rp82.9 thousand, a decrease 1.8% QoQ. 9M12 ARPU was Rp88.1 thousand,a decrease 11.5% YoY.

Fixed Wireless3Q12 blended ARPU was at Rp8 thousand. 9M12 ARPU was Rp9.2 thousand, a 0.1% YoYincrease.


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ADDITIONAL INFORMATION

Capital Expenditure

For the nine months 2012, paid Capex of Telkom, Telkomsel and other subsidiaries were amounting

to Rp2.3 trillion, Rp6.9 trillion and Rp1.7 trillion respectively. Telkoms Capex was mainly utilized forenhancing infrastructure and broadband. Meanwhile, Telkomsel's Capex was utilized for radio accessnetwork. Other Subsidiaries Capex mainly utilized for tower infrastructure.

Share Buyback IV Program

As of September 30, 2012, under the SBB IV program we have bought back 515.9 million shares inthe Indonesian Stock Exchange (IDX) and New York Stock Exchange (NYSE) amounting toRp3.8 trillion or 75.2% from total target Rp5 trillion. The program will expire on November 2012. Itmade our total number of treasury stocks reached more than1 billion shares.

Segment Information

Telkom changed operating segment information that previously was reported based on productnamely Fixed Wireline, Fixed Wireless and Cellular to be based on customer line namelyConsumer, Corporate, and Other. Consumer segment provides services to individual and homebased customers, meanwhile Corporate segment provides services to corporation and institutioncustomers. Other segment reconciles other than Consumer and Corporate segment.

The Consumer segment derives revenue mainly from cellular services, fixed line (wireline andwireless), pay tv, data and internet. The Corporate segment derives revenue mainly frominterconnection services, leased lines, satellite, VSAT, contact center, broadbandaccess, information technology services, data and internet. The remaining operations within Othersegment derives revenue mainly from property management services.

Recent Development In August 2012, through one of its subsidiaries, Telkomsigma, Telkom acquired a 3,200 m2 data

center in Sentul, West Java. This will increase our capacity to serve the demands on data centerservices. The acquisition makes total capacity of Telkoms data center to be 11,500 m2. This is apart of efforts to strengthen our IT business. We aimed to increase our data center capacity to be24,000 m2 by 2016.

PT. Telekomunikasi Indonesia International (Telin), one of Telkoms Subsidiaries, was awarded 15years of spectrum licenses for mobile telecommunications services at a frequency of 850 MHz,900MHz, 1800 MHz, and 2.1 GHz band and the Registration Service Provider in the DemocraticRepublic of Timor-Leste. By bagging the license, Telin was ready to hold service for Global System

for Mobile Communications (GSM) and third generation (3G) in Timor-Leste with total investmentamount no less than US$ 50 million during the first five years. Telin will provide a complete servicein Timor-Leste, with strong support from PT Telekomunikasi Selular (Telkomsel). Telin will providethe core service in the form of wireless broadband, business solutions and digital lifestyle. Inaddition, Telin also will provide network-based service, such as data service and Internet Protocol(IP) Transit.

Telkom has received a letter from ISS Reshetnev Rusia as the main contractor of Telkom-3Satellite. It officialy stated that Telkom-3 Satellite has been lost since it could not be returned to theintended orbit, as there was an anomaly in the launching process on August 7, 2012. Telkom fullyinsured the satellite to PT Asuransi Jasa Indonesia (Jasindo) and Jasindo has confirmed to pay thefull amount of Telkoms claim.


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Following the dispute between Telkomsel and PT Prima Jaya Informatika (PT Prima), aTelkomsels distributor of pulse reload vouchers under a distribution agreement by both parties, theJakarta Commercial Court at the Central Jakarta District Court accepted the bankruptcy petitionagainst Telkomsel filed by PT Prima based on its verdict on September 14, 2012.

The bankruptcy petition was filed by PT Prima on the basis of:

PT Primas claim on overdue receivable from Telkomsel amounted to Rp5.26 billion whichrepresents the value of undelivered pulse reload vouchers based on orders covered bypurchase orders; and

receivable of another company from Telkomsel.

Telkomsel has contested PT Primas claim and stated that Telkomsels payable to the othercompany has been fully repaid. Besides, PT Prima has no right to claim receivable fromTelkomsel, considering that PT Prima has not made any payment to Telkomsel on its orders. PTPrima has also breached the terms and conditions as stipulated in the above-mentionedagreement. Therefore, the requirement for a bankruptcy petition should have not been met.

The decision of the Jakarta Commercial Court at the Central Jakarta District Court is not in thefavor of Telkomsel.

Telkomsel has taken necessary actions and legal remedy to challenge the above court decision byfiling an appeal to the Supreme Court on September 21, 2012. As of the date of this report, theappeal to the Supreme Court is still in process.

Notwithstanding the bankruptcy status, considering that Telkomsel is a healthy company withsufficient resources to fulfill its obligations, the Supervisory Judge has allowed Telkomsel tocontinue its business activity.

While the examination of the appeal to the Supreme Court is still in process, Telkomsel cannotdetermine the financial impact of bankruptcy.


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Table 1PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2011 (AUDITED) AND SEPTEMBER 30, 2012 (UNAUDITED)(Figures in tables are presented in billions of Rupiah)

DEC 31, 2011 SEP 30, 2012

ASSETSCURRENT ASSETSCash and cash equivalents 9,634 11,925Available-for-sale financial assets 361 333Trade receivables

Related parties 932 2,164Third parties 3,983 3,995

Other receivables - net of provision for impairment of receivable 335 2,288Inventories - net of provision for obsolesce 758 664Advances and prepaid expenses 3,294 2,532

Claims for tax refund 371 423Prepaid taxes 787 244Assets held for sale 791 453Other current assets 12 4

Total Current Assets 21,258 25,025

NON-CURRENT ASSETSLong-term investment - net 235 266Property, plant and equipment - net of accumulated depreciation 74,897 74,501Prepaid pension benefit costs 991 1,023Advances and other non-current assets 3,817 2,854Intangible assets - net of accumulated amortisation 1,789 1,661Deferred tax assets - net 67 72

Total Non-current Assets 81,796 80,377

TOTAL ASSETS 103,054 105,402


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Table 1 (Continued)PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2011 (AUDITED) AND SEPTEMBER 30, 2012 (UNAUDITED)(Figures in tables are presented in billions of Rupiah)

DEC 31, 2011 SEP 30, 2012LIABILITIES AND EQUITY

CURRENT LIABILITIESTrade payables

Related parties 838 908Third parties 7,479 7,103

Other payables 37 163Taxes payables 1,039 2,263Dividend payables 1 3Accrued expenses 4,790 5,393Unearned income 2,821 2,888

Advances from customers and suppliers 271 319Short-term bank loans 100 238Current maturities of long-term liabilities 4,813 4,736

Total Current Liabilities 22,189 24,014

NON-CURRENT LIABILITIESDeferred tax liabilities - net 3,794 3,448Unearned income 242 199Long service awards provisions 287 283Post-retirement health care benefit provisions 888 686Retirement benefits obligation 1,715 2,147Long-term liabilities - net of current maturities:

Obligations under finance leases 314 255

Two-step loans - related party 2,012 1,966Bonds and notes 3,401 3,358Bank loans 7,231 6,281

Total Non-current Liabilities 19,884 18,623TOTAL LIABILITIES 42,073 42,637

EQUITYEQUITY ATTRIBUTABLE TO OWNERS OF THE PARENTCapital stock - Rp.250 par value per Series A

Dwiwarna share and Series B shareAuthorized - 1 Series A Dwiwarna share and

79,999,999,999 Series B sharesIssued and fully paid - 1 Series A Dwiwarna

share and 20,159,999,279 Series B shares 5,040 5,040Additional paid-in capital 1,073 1,073Treasury stock (6,323) (8,024)Difference in value arising from restructuring transactions and

other transactions between entities under common control 478 478Difference due to change of equity in associated companies 386 386Unrealized holding gain from available-for-sale securities 47 55Translation adjustment 240 244Difference due to acquisition of non-controlling interest in subsidiaries (485) (501)Other reserves - 49Retained earnings

Appropriated 15,337 15,337Unappropriated 31,717 34,591

Total Equity Attributable to Owners Of The Parent 47,510 48,728

Non-controlling Interest 13,471 14,037

TOTAL EQUITY 60,981 62,765TOTAL LIABILITIES AND EQUITY 103,054 105,402


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Table 2PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2011 AND 2012 (UNAUDITED)(Figures in tables are presented in billions of Rupiah, except per share and per ADS data)

2011 2012

REVENUES 52,833 56,864

Other income 388 549

EXPENSESOperations, maintenance and telecommunication services (12,566) (12,845)Depreciation and amortization (10,782) (10,601)Personnel (6,468) (6,299)Interconnection (2,531) (3,375)General and administrative (1,795) (2,216)

Marketing (2,370) (2,209)Loss on foreign exchange - net (40) (297)Share of loss of associated companies (2) (4)Others expense (100) (264)

Total Expenses (36,654) (38,110)

PROFIT BEFORE FINANCE (COST) INCOME AND INCOME TAX 16,567 19,303

Finance income 386 364Finance costs (1,209) (847)Total Finance Costs - Net (823) (483)

PROFIT BEFORE INCOME TAX 15,744 18,820

INCOME TAX (EXPENSE) BENEFITCurrent (4,294) (5,071)Deferred 256 369

(4,038) (4,702)PROFIT FOR THE PERIOD 11,706 14,118

OTHER COMPREHENSIVE INCOMEForeign currency translation 1 4Change in fair value of available-for-sale financial assets (5) 8

Total Other Comprehensive Income net of tax (4) 12

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 11,702 14,130

Profit for the period attributable to:Owners of the parent 8,385 10,001Non-controlling interest 3,321 4,117

11,706 14,118

Total comprehensive income attributable to:Owners of the parent 8,381 10,013Non-controlling interest 3,321 4,117

11,702 14,130

BASIC EARNINGS PER SHAREIncome per share 427.03 520.34Income per ADS (40 Series B shares per ADS) 17,081.20 20,813.60


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Table 3PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES

STATEMENT OF FINANCIAL POSITIONDECEMBER 31, 2011 (AUDITED) AND SEPTEMBER 30, 2012 (UNAUDITED)

(figures are presented in billions of Rupiah)

DEC 31, 2011 SEP 30, 2012ASSETSCURRENT ASSETS

Cash & cash equivalents 4,223 6,800Acct. / including Unbilled receivables 1,038 1,119Prepayments 2,472 1,513Others 2,122 1,325Total Current Assets 9,855 10,757

NON-CURRENT ASSETSLong-term investment 20 20Fixed assets-net 46,208 45,273Advances for fixed assets 530 552Intangible assets-net 1,033 1,028Prepayments Non Current Portion 947 1,028Others 129 276Total Non-Current Assets 48,868 48,177

TOTAL ASSETS 58,723 58,934

LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIES

Accounts payable & Accrued Liabilities 8,466 8,588Taxes payable 760 1,508Unearned revenue 2,478 2,557Current maturities of medium-term & long-term loans 2,271 1,507Total Current Liabilities 13,975 14,160

NON-CURRENT LIABILITIESMedium-term & long-term - net of current maturities 3,486 2,049Deferred tax liabilities 2,363 2,051Others 523 837Total Non-current Liabilities 6,372 4,937

EQUITYCapital Stock - Rp1,000,000 par value

Authorized - 650,000 sharesIssued and fully paid - 182,570 shares 183 183

Additional paid-in capital 1,505 1,505Retained earnings 36,688 38,149

Total Equity 38,376 39,837

TOTAL LIABILITIES AND EQUITY 58,723 58,934


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Table 4PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES

STATEMENT OF COMPREHENSIVE INCOMENINE MONTHS PERIOD ENDED SEPTEMBER 30, 2011 AND 2012 (UNAUDITED)

(figures in tables are presented in bi llions of Rupiah, otherwise stated)

2011 2012REVENUES

Postpaid 3,251 3,190Prepaid 29,504 33,121International Roaming revenues 520 540Interconnection revenues 2,354 2,638Other (USO compensation & network lease) 400 369Total Revenues 36,029 39,858

EXPENSESPersonnel 1,245 1,543Operation & maintenance 7,835 8,193

General & administrative 618 674Marketing 1,569 1,451Interconnection 1,957 2,378Cost of services 2,255 2,925Depreciation 7,591 7,141Others - net (122) (98)

Total Expenses 22,948 24,207

Interest income & financing charges (359) -

INCOME BEFORE TAX 12,722 15,651INCOME TAX EXPENSE 3,213 3,931TOTAL PROFIT/COMPREHENSIVE INCOME FOR THE PERIOD 9,509 11,720

EBITDA 20,550 22,694EBITDA Margin 57% 57%

ROA 21% 26%ROE 38% 40%

Documents

Infomemo PT Telekomunikasi Indonesia 9M12