PT Tekom Info Memo 20131 h

8/12/2019 PT Tekom Info Memo 20131 h

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T H E F I R S T H A L F 2 0 1 3 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 : 53.7%Public : 46.3%Excl. Treasury stock 951,119,060 shares.

CONVERSION RATES (US$ 1.00):June 30, 2013 = Rp9,925June 30, 2012 = Rp9,392.5

FINANCIAL PERFORMANCERevenue(in Rp. Bn)

OPERATIONAL PERFORMANCESubscribers(million)

HighlightOur consolidated revenue in 1H13 grew by 9.4% YoY to Rp 40.2 trillion and our celullar

subsidiary recorded a 12.0% YoY revenue growth to Rp 28.5 trillion.

Our broadband users grew by 71.1% YoY, meanwhile cellular subscribers increased6.7% YoY to 125.1 million.

Fixed line business maintained its positive revenue growth at level of 1.1% YoY.

Telkomsel continued to accelerate network deployment with more than 1,300 new BTSper month were deployed during 1H13 and almost 70% of it was 3G Node B.

Investor Relations

PT Telekomunikasi Indonesia TbkGrha Citra Caraka, 5th FloorJl. Gatot Subroto No. 52, Jakarta 12710Phone : 62 21 5215109Fax : 62 21 5220500Email : [email protected] : www.telkom.co.id

DISCLAIMER

This document contains financial conditions and result of operation, and may also contain certainprojections, plans, strategies, and objectives of the Company, which would be treated as forward lookingstatements within the meaning of applicable law. Forward looking statements, by their nature, involve riskand uncertainty that could cause actual results and development to differ materially from those expressed orimplied in these statements. Telkom Indonesia does not guarantee that any action, which may have beentaken in reliance on this document, will bring specific results as expected.

Financial HighlightsKey Indicators YoY QoQ

(Rp. Bn) 1H12 1H13 Growt h(%)

3Q12 4Q12 1Q13 2Q13 Growth(%)

Revenues 36,720 40,160 9.4 20,144 20,279 19,547 20,613 5.5

Expenses 24,419 26,314 7.8 13,138 13,888 12,797 13,517 5.6

Operating Profit 12,301 13,846 12.6 7,006 6,391 6,750 7,096 5.1

EBITDA 19,282 20,475 6.2 10,638 9,837 10,049 10,426 3.8

EBITDA Margin (%) 52.5 51.0 (1.5) 52.8 48.5 51.4 50.6 (0.8)

Net Income 6,428 7,125 10.8 3,573 2,849 3,477 3,648 4.9

Operational Highlights

Subscriber (000)YoY QoQ

1H12 1H13 Growt h(%)

3Q12 4Q12 1Q13 2Q13 Growth(%)

Broadband

Fixed Broadband/Speedy 1,957 2,781 42.1 2,131 2,341 2,652 2,781 4.9

Mobile Broadband/Flash 5,807 11,113 91.4 8,662 11,039 8,767 11,113 26.8

BlackBerry 4,055 6,332 56.2 5,126 5,764 5,557 6,332 13.9

Total 11,819 20,226 71.1 15,919 19,144 16,976 20,226 19.1

Cellular

Postpaid 2,119 2,326 9.8 2,155 2,149 2,219 2,326 4.8

Prepaid 115,116 122,765 6.6 119,322 122,997 118,392 122,765 3.7

Total 117,235 125,091 6.7 121,477 125,146 120,611 125,091 3.7

Fixed Line

LIS Wireline 8,774 9,151 4.3 8,854 8,946 9,044 9,151 1.2

LIS Wireless 16,237 15,550 (4.2) 16,782 17,870 18,384 15,550 (15.4)

Total 25,011 24,701 (1.2) 25,636 26,816 27,428 24,701 (9.9)


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THE FIRST HALF 2013 (UNAUDITED)

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PT TELEKOMUNIKASI INDONESIA, Tbk.THE FIRST HALF 2013 RESULTS (UNAUDITED)

The following analysis and discussion is based on our Indonesian GAAP financial statements for thesix months ended June 30, 2012 and 2013. The reports have been submitted to Indonesia FinancialServices Authority (OJK).

FINANCIAL RESULTS

Revenues

Key Indicators YoY QoQ(Rp. Bn)

1H12 1H13Growth

(%)3Q12 4Q12 1Q13 2Q13

Growth(%)

Cellular 14,666 15,398 5.0 7,931 8,134 7,578 7,820 3.2

Fixed Line Voice 5,565 5,013 (9.9) 2,548 2,549 2,494 2,519 1.0

Data, Internet & ITService (Incl.SMS)

12,742 15,039 18.0 7,348 7,534 7,347 7,692 4.7

Interconnection 1,910 2,355 23.3 1,178 1,185 1,145 1,210 5.7

Network 624 655 5.0 306 278 332 323 (2.7)

Other Telco Services 1,213 1,700 40.1 833 599 651 1,049 61.1

Total 36,720 40,160 9.4 20,144 20,279 19,547 20,613 5.5

Total revenue for 1H13 is Rp40.2 trillion, an increase of 9.4% YoY. Cellular revenues is still thelargest contributor followed by Data, internet and IT services as the second contributor. Total revenueincreased by 5.5% QoQ with details are as follows:

Cellular revenues increased by 3.2% QoQ resulting from the increase of monthly commitmentand also the increase in usage revenues.

Fixed line revenues, consisted of fixed wireline and fixed wireless voice revenues, increased byonly 1.0% QoQ.

o Fixed wireline revenue increased by 1.3% as a result of increase in long distance usagerevenues.

o Fixed wireless revenue decreased by 1.2% as results of decrease in prepaid local usagerevenues.

Data, Internet & IT Services revenues increased by 4.7% QoQ. The increase was contributed

by internet and data communication revenues that increased by 7.0% QoQ or amounting toRp291 trillion, mostly derived from celullar data and fixed line data communication. SMS revenuesalso increased by 1.4% QoQ that solely from cellular SMS.

Interconnection revenuesincreased by 5.7% QoQ or amounting to Rp64.8 billion mostly derivedfrom cellular interconnection.

Network revenuesdecreased by 2.7% QoQ resulting from the decrease in transponder revenueamounting to Rp5.0 billion and other lease line revenue amounting to Rp5.8 billion.

Other telecommunication services revenuesincreased by 61.1% QoQ as a results of increasein modem selling revenue, directory assistant revenue, CPE and USO services.


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Expenses

Key Indicators YoY QoQ

(Rp. Bn)1H12 1H13

Growth(%)

3Q12 4Q12 1Q13 2Q13Growth

(%)

Operation, Maintenance &Telecommunication Service 8,235 9,732 18.2 4,610 3,958 4,698 5,034 7.2

Personnel 4,165 4,605 10.6 2,134 3,487 2,331 2,274 (2.4)

Interconnection 2,131 2,371 11.3 1,244 1,292 1,175 1,196 1.8

Marketing 1,460 1,339 (8.3) 749 885 651 688 5.7

General Administrative 1,447 1,638 13.2 769 820 643 995 54.7

Depreciation & Amortization 6,967 6,940 (0.4) 3,634 3,855 3,462 3,478 0.5

(Gain)/Loss on forex net &others net 14 (311) (2,321.4) (2) (409) (163) (148) (9.2)

Total 24,419 26,314 7.8 13,138 13,888 12,797 13,517 5.6

Compared to last quarter results, total expenses increased by 5.6% with the following details:

Operation & Maintenance (O&M) expenses increased by 7.2% QoQ mostly due to theincrease in IT services expense for the software maintenance and software licence, modem andCPE expense, USO expenses and frequency fees.

Personnel expensesdecreased by 2.4% QoQ mostly due to the decrease in bonus expenses.

Interconnection expensesincreased by 1.8% QoQ which was contributed by increase in cellularinterconnection charges.

Marketing expenses increased by 5.7% QoQ mostly due to increase in promotion and sales

expense.

General & Administrative expensesincreased by 54.7% QoQ. The increase contributed by thepayment of BOD and BOC remuneration as decided on the AGM in April 2013, domestic trainingexpense, social contribution expense and collection fees.

Depreciation & Amortization expenses slightly increased by 0.5% QoQ as a result of theincrease in installation and transmission equipment which compensated by the decrease in dataprocessing equipment.

EBITDA, EBITDA Margin and Net Income

First half 2013 EBITDA increased by 6.2% YoY to Rp20.5 trillion and represents an increase of3.8% QoQ to Rp10.4 trillion and resulting EBITDA margin a bit lower 1.5% YoY to 51.0% anddecrease 0.8% QoQ, to 50.6%.

Net Income for 1H13 increased by 10.8% YoY to Rp7.1 trillion and increase 4.9% QoQ to Rp3.6trillion.

The basis to calculate the EBITDA is the expenses without depreciation & amortization expenses,forex exchange gain or loss, and others-net.


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Financial Position

Key Indicators YoY QoQ

(Rp. Bn)1H12 1H13

Growth(%)


(%)

Assets 101,536 111,472 9.8 105,402 111,369 116,104 111,472 (4.0)Liabilities 43,717 46,723 6.9 42,637 44,391 44,137 46,723 5.9

Non-controlling Interests 12,434 13,783 10.8 14,037 15,437 16,935 13,783 (18.6)

Equity attributable toowners of the company 45,385 50,966 12.3 48,728 51,541 55,032 50,966 (7.4)

Decrease in assets by 4.0% QoQ was a result of decrease in cash and cash equivalent after thedivident of 2012 financial year was paid.

Increase in Liabilities by 5.9% QoQ was a result of increase in trade payables, obligation underfinance lease and banks loans.

Decrease in non-controlling interest of 18.6% QoQ was due to the decrease of non-controlling net

assets of subsidiaries, notably of Telkomsels assets in the event of divident payment.

Decrease in Equity of 7.4% QoQ was due to the decrease in retained earnings due to the dividenpayment of 2012 financial year.

Cash Flows

Key Indicators YoY

(Rp. Bn)1H12 1H13

Growth(%)

Cash Flow from Operating Activities 16,781 14,388 (14.3)

Cash Flow from Investing Activities (6,658) (2,447) (63.2)

Cash Flow from Financing Activities (11,233) (13,605) 21.1

Net Increase (Decrease) in Cash & Cash Equivalent (1,110) (1,664) 49.9Effect of Foreign Rate Changes 58 97 67.2

Cash & Cash Equivalents at Beginning of Periods 9,634 13,118 36.2

Cash & Cash Equivalents at End of Periods 8,582 11,551 34.6

Net cash generated from operations decreased by 14.3% YoY due to the higher cash out forexpense and tax payment during 1H13 compared to the same period last year.

Net cash used for investment decreased by 63.2% YoY due to the cash received as the shortterm investment maturing (time deposits more than 3 months) during 1H13.

Net cash used for financing activities increased by 21.1% YoY as a results of combined impact of

the higher cash out for 2012 dividen payment compared to the 2011 dividend paid last year, whichoffset by the absence of cash used for share buy back during 1H13 since the last program, SBBIV, was expired in November 2012.

Debts

Currencies YoY QoQ Portion (%)(Rp. Bn)

1H12 1H13Growth

(%)1Q13 2Q13

Growth(%)

1H12 1Q13 2Q13

IDR/Rupiah 14,095 14,014 (0.6) 13,293 14,014 5.4 80.6 82.2 84.6

USD/US Dollar 2,257 1,659 (26.5) 1,927 1,659 (13.9) 12.9 11.9 10.0

JPY/JapaneseYen 1,135 886 (21.9) 951 886 (6.8) 6.5 5.9 5.4

Total 17,487 16,559 (5.3) 16,171 16,559 2.4 100.0 100.0 100.0


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Our debts consisted of Two-Step Loans (TSL), Bonds, Notes and Banks Loans. During secondquarter 2013, we made repayment of Banks Loans, TSL, and Notes of Rp516 billion, Rp88 billion,and Rp164 billion, respectively. We made new debts for working capital purposes in the form ofBanks loans amounting to Rp1,165 billion.

Gearing

Key Indicators YoY

1H12 1H13 Growth

Net Debt to Equity (%) 19.3 8.5 (10.9)

Debt to Equity (%) 39.0 32.5 (6.5)

Debt to EBITDA (%) 91.8 80.9 (10.9)

Debt Service Ratio (Times) 3.6 3.5 (0.1)

Financial RatioRatios YoY QoQ

(%)1H12 1H13

Growth(%)


(%)

Profit Margin 33.5 34.5 1.0 34.8 31.5 34.5 34.4 (0.1)

Profit for the yearattributable to ownersMargin 17.5 17.7 0.2 17.7 14.0 17.8 17.7 (0.1)

EBITDA Margin 52.5 51.0 (1.5) 52.8 48.5 51.4 50.6 (0.8)

Current Ratio 84.0 95.4 11.4 104.2 116.0 133.9 95.4 (38.6)

Return on Assets 6.3 6.4 0.1 3.4 2.6 3.0 3.3 0.3

Return on Equity 14.2 14.0 (0.2) 7.3 5.5 6.3 7.2 0.9

Total Liabilities to Equity 96.3 91.7 (4.7) 87.5 86.1 80.2 91.7 11.5

Telkomsel Financial Result

Telkomsel sustained its strong performance in 1H13 with strong results both in financial andoperational performance. The revenue growth was driven by continued strong growth in mobile data,while voice and SMS also maintained its expected growth.

Income Statement

Statement of Income YoY QoQ

(Rp. Bn) 1H12 1H13 Growth(%)

1Q13 2Q13 Growth(%)

Revenues 25,427 28,471 12.0 13,928 14,543 4.4Expenses (incl. Depreciation) 15,660 17,092 9.1 8,279 8,813 6.5EBITDA 14,423 15,956 10.6 7,838 8,118 3.6EBITDA Margin (%) 56.7 56.0 (0.7) 56.3 55.8 (0.5)Net Income 7,295 8,575 17.5 4,294 4,280 (0.3)

Operating revenuesfor 1H13 was Rp28,471 billion, an increase of 12.0% YoY (+4.4% QoQ).

Postpaid revenueincreased 4.2% YoY to Rp2,232 billion. It also increased by 3.7% QoQ due togrowth from data broadband.

Prepaid revenue increased 11.4% YoY to Rp23,552 billion (+3.4% QoQ) contributed by databroadband, voice and SMS.


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Interconnection and international roaming revenues increased 21.2% YoY to Rp2,336 billion dueto implementation of SMS interconnection charging that commenced in June 2012. It grew 9.2%QoQ.

For the first half of 2013,expensesincreased by 9.1% YoY, lower than revenue growth of 12.0%. Personnel expenses increased 14.9% YoY (-3.2% QoQ) to Rp1,138 billion, due to additional

employee and incentive impact of better financial performance in 1H13 compared to 1H12.

Operation & maintenance expensesgrew 18.1% YoY (+4.5% QoQ) to Rp6,335 billion, in line withincreased network deployment, repair and maintenance of billing system.

General & administration expenses increased 32.5% YoY (+39.2 QoQ) to Rp582 billion due tocost of office and vehicle rental.

Marketing expensesincreased 10.1% YoY (-1.9% QoQ) to Rp995 billion due to sales activity andmarketing research and sales support cost in line with increased business activities.

Interconnection charges increased 11.1% YoY (+1.7% QoQ) to Rp1,583 billion, largely as a result

of higher domestic interconnection due to the implementation of SMS interconnection charges.

Cost of Services was stable YoY at Rp1,881 billion. It was 13.1% higher QoQ due to higher costof cards.

Depreciation expensesdecreased 1.8% YoY (+5.5% QoQ) to Rp4,612 billion due to infrastructureroll out.

First half 2013 EBITDA grew by 10.6% YoY to Rp15,956 billion and 3.6% QoQ to Rp8,118 billion.Net incomefor 1H13 increased by 17.5% YoY to Rp8,575 billion but slightly decreased 0.3% QoQ toRp4,280 billion.

Financial Position

Total Assets increased 6.8% to Rp60,200 billion.Total liabilities slightly increased 0.9% to Rp21,151billion and total equity increased 10.3% to Rp39,049 billion.

Current assetsincreased 1.0% to Rp8,418 billion.

Fixed assets increased by 7.3% to Rp48,565 billion came from infrastructure and businesssupport system.

Current liabilities decreased 4.5% to Rp14,703 billion mainly due to decline in dividend payableand taxes payable.

Non-current liabilities increased 15.9% to Rp6,448 billion mainly due to obligation under capitallease and provision for employee benefits.

As of June 30, 2013 Telkomsel had Rp2,745 billion loans outstanding, of which Rp1,477 billion was

presented as current liabilities and Rp1,269 billion as non-current liabilities.

Cash Flows

We recorded a 4.4% increase in net cash generated from operations in 1H13 to Rp14,320 billion. Cash flow from investment activities decreased 76.9% to Rp1,022 billion due to proceed from short-term investment. Net cash used in financing activities fell 43.2% to Rp817 billion due to lower loanspayment.


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STATEMENT OF CASH FLOWSFOR SIX MONTHS ENDED JUNE 30, 2012 AND 2013

(In Billions of Rupiah)

1H12 1H13

Cash Flow from Operating Activities 13,711 14,320Cash Flow from Investing Activities (4,418) (1,022)

Cash Flow from Financing Activities (1,439) (817)

Dividend (7,848) (12,890)

Net Increase in Cash & Cash Equivalents 6 (409)

Effect of Foreign Exchange Rate Changes 37 41

Cash and Cash Equivalents at Beginning of Periods 4,223 4,787

Cash and Cash Equivalents at End of Periods 4,266 4,418

Addition to Fixed Assets (incl. CIP) 4,282 7,002

Loan/ Debt

Telkomsel has to observe certain agreed financial covenants related to its loans/debts. As of June 30,2013 these covenants were as follows:erve certain agreed financial covenants related to itsloans/debts. As o f June 30, 2013 these covenants w ere as fol lows:

Covenant t/b maintained Required Actual

Bank Loans EBITDA to Debt Service 1.25 17.63

Debt to Tangible Net Worth 2.00 0.07


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OPERATIONAL RESULTS

Broadband Services

Customer Base

Fixed Broadband2.8 million users, grew 42.1% YoY and 4.9% QoQ.

Mobile Data & Broadband11.1 million Flash users, grew 91.4% YoY.Telkomsels BlackBerry customers reached 6.3million, a 56.2% YoY growth. Total number of datausers including of pay-as-you-use reached 51.8million, grew 9.9% from the same period last year.

ARPU & Traf fi c Production

Fixed Broadband2Q13 ARPU was Rp139thousand, decreased of 4.6% QoQ while ARPU 1H13 wasRp143thousand, decreased 23.6% YoY, caused by the increase of Speedy Instant users, prepaidservice of fixed broadband with lower ARPU.

Mobile Data & BroadbandData traffic/payload continued to show a significant growth in 1H13 reached 37,873 terabytes,grew 65.6% YoY.

New Products & Programs

Mobile BroadbandsimPATIAgnes data campaign was launched to engage customer with video upload competitionand smartphone bundling packages (Samsung Galaxy S4 and BlackBerry Q10 & Z10).

Cellu lar Services

Customer Base

As of June 2013, Telkomsel served 125.1 million customers comprising 2.3 million postpaid and122.8 million prepaid customers. This represents an increase of 7.9 million customers or growth of6.7% YoY.

Traffic Production & ARPU

Total MOU production for 1H13 reached 94.6 billion minutes, an increase of 7.5% YoY. Average RPMfor 1H13 declined 2.3% YoY to Rp155.

Total SMS production for 1H13 increased by 1.1% to 127.7 billion units compared to 1H12. For 1H13average RPS reached Rp48, which was 7.4% higher than 1H12.

Blended ARPU for 1H13 was stable compared to previous year at Rp36K and increased by 4.5%compared to previous quarter, the contribution mainly came from data broadband and digital services.


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New Products & Programs

simPATI Loop starter pack was launched with morebenefits on data package, attractive tariff and bonusesscheme in voice & SMS. Kartu AS PlayMania starterpack was launched providing activation bonus,attractive tariff & packages available for voice, SMSand kid digital contents.

simPATI Kupon was launched by giving couponbenefit to purchase special package. Kartu AS Gokilwas launched by giving package selection for bonuseson voice, SMS and data.

Network Development

Telkomsel continued to accelerate its networkdevelopment to support the increasing data traffic by giving more focus on 3G Node-B deployment. In1H13, Telkomsel added 7,928 units new BTS, of which 5,395 units were 3G Node-B (increased226.0% YoY). Total BTS on air as of the end 1H13 were 62,225 units (increased 31.7% YoY),including 20,828 3G Node-Bs (increased 86.6% YoY).

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

Key Indicators UnitYoY QoQ

1H12 1H13 Growth 3Q12 4Q12 1Q13 2Q13 Growth

CUSTOMER BASE

Total CustomerPostpaid (kartuHALO) Subs (000) 2,119 2,326 9.8 2,155 2,149 2,219 2,326 4.8Prepaid (simPATI+Kartu As)

Subs (000) 115,116 122,765 6.6 119,322 122,997 118,392 122,765 3.7

Total Subs (000) 117,235 125,091 6.7 121,477 125,146 120,611 125,091 3.7Net AddPostpaid (kartuHALO) Subs (000) (69) 177 355.3 37 (7) 70 107 51.3Prepaid (simPATI+Kartu As)

Subs (000) 10,287 (232) (102.3) 4,206 3,676 (4,606) 4,374 (195.0)

Total Subs (000) 10,218 (55) (100.5) 4,243 3,669 (4,536) 4,481 (198.8)MoU (Total) Bn Minutes 88 95 7.5 49 48 46 49 6.0SMS (Total) Bn Units 126.4 127.7 1.1 64 63 62 65 5.1

ARPU

Postpaid (kartuHALO) Rp.'000 per mo 184 186 1.2 189 199 187 185 (1.2)Prepaid (simPATI+Kartu As)

Rp.'000 per mo 33 34 2.7 35 35 33 34 4.6

Blended Rp.'000 per mo 36 36 0.1 38 38 36 37 4.5

NETWORK DATA

BTS Unit 47,253 62,225 31.7 51,005 54,297 57,664 62,225 7.9

EMPLOYEE DATA

Total employees Person 4,448 4,671 5.0 4,454 4,557 4,603 4,671 1.5

Efficiency ratio000 Subs/employee 26 27 1.6 27 27 26 27 2.2


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Fixed Line Services

Customer Base

Fixed Wireline9.2 million subscribers, 4.3% growth from last year and 1.2% from last quarter.

Fixed Wireless15.6 million subscribers at the end of 2Q13, decrease both YoY and QoQ respectively by 4.2%and 15.4%.

ARPU

Fixed Wireline1H13 ARPU was at Rp79 thousand, a decrease 12.6% YoY.

Fixed Wireless1H13 ARPU was at Rp7 thousand, a 33.6% decrease YoY.

ADDITIONAL INFORMATION

Capital Expenditure

For the first half of 2013, paid Capex of Telkom, Telkomsel and other subsidiaries were amounting toRp1.5trillion, Rp4.9trillion and Rp1.7trillion respectively. Telkoms Capex was mainly utilized fordeploying access and backbone infrastructure to support the broadband services, Telkomsel's Capexwas utilized for radio access network. Other Subsidiaries Capex was utilized among others forerecting towers and developing infrastructure.

Recent Development

Telkom Group and CT Corp Enter Into Strategic Partnership to Foster Telkomvision

Telkom Group and CT Corp, two leading consumer-focused group in Indonesia, June 4, 2013announced a strategic partnership to further strengthen Telkom Visions leading position in the payTV industry. In this partnership, Telkom Group will be the infrastructure provider and CT will be thecontent provider. The vision is focused on providing more value to Telkom Group subscribers andcreates a strengthened alliance empowering Telkom Vision and digital media to advance in

competitive media market.

Telkom Transferred Treasury Stocks f rom SBB III Program to Employees Through ESOP

On June 14, 2013, Telkom transferred a portion of the treasury stock to its employees as part of the2012 annual incentives. The 59,811,400 treasury stock transferred had a total fair value of Rp641billion. The excess of the transfer value of the treasury stock over their cost amounted Rp208 billionwas credited to additional paid-in capital.

Awards & Recogni tion

During 2Q13, we have been awarded by several institution for our achievements, among others:


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Table 1

PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED)

(figures are presented in billions of Rupiah)

DEC 31, 2012 JUN 30, 2013 Growth (%)

ASSETS

CURRENT ASSETSCash and cash equivalents 13,118 11,551 (11.9)Other current financial assets 4,338 696 (84.0)Trade receivables net of provision for impairment of receivables

Related parties 701 1,131 61.3Third parties 4,522 5,483 21.3

Other receivables net of provision for impairment of receivables 186 525 182.3Inventories net of provision for impairment obsolescence 579 634 9.5Advances and prepaid expenses 3,721 3,091 (16.9)Claims for tax refund 436 423 (3.0)

Prepaid taxes 372 488 31.2Asset held-for-sale - 131 -

Total Current Assets 27,973 24,153 (13.7)

NON-CURRENT ASSETSLong-term investments - net 275 264 (4.0)Property, plant and equipment net of accumulated depreciation 77,047 80,621 4.6Prepaid pension benefit cost 1,032 981 (4.9)Advances and other non-current assets 3,510 3,798 8.2Intangible assets net of accumulated amortization 1,443 1,525 5.7Deferred tax assets - net 89 130 46.1

Total Non-current Assets 83,396 87,319 4.7

TOTAL ASSETS 111,369 111,472 0.1


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Table 1 (Continued)PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED)(figures are presented in billions of Rupiah)

DEC 31, 2012 JUNE 30, 2013 Growth (%)

LIABIL ITIES AND EQUITY

CURRENT LIABIL ITIESTrade payables

Related parties 432 1,242 187.5

Third parties 6,848 7,074 3.3

Other payables 176 156 (11.4)

Taxes payables 1,844 2,206 19.6

Accrued expenses 6,163 5,622 (8.8)

Unearned income 2,729 3,067 12.4

Advances from customers and suppliers 257 295 14.8

Short-term bank loans 37 257 594.6

Current maturities of long-term liabilities 5,621 5,404 (3.9)

Total Current Liabil iti es 24,107 25,323 5.0

NON-CURRENT LIABILITIESDeferred tax liabilities 3,059 3,338 9.1

Other liabilities 334 301 (9.9)

Long service awards provisions 347 358 3.2

Post-retirement health care benefit provisions 679 686 1.0

Retirement benefits obligation and other post retirement benefits 2,248 2,513 11.8

Long-term liabilities - net of current maturities

Obligations under finance leases 1,814 2,754 51.8

Two-step loans - related party 1,791 1,609 (10.2)

Bonds and Notes 3,229 3,111 (3.7)

Bank loans 6,783 6,730 (0.8)

Total Non-cur rent Liabil iti es 20,284 21,400 5.5

TOTAL LIABILITIES 44,391 46,723 5.3

EQUITY

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENTCapital stock - Rp250 par value per Series A

Dwiwarna share and Series B share

Authorized - 1 Series A Dwiwarna share and

79,999,999,999 Series B shares

Issued and fully paid - 1 Series A Dwiwarna share

and 20,159,999,279 Series B shares 5,040 5,040 -

Additional paid-in capital 1,073 1,281 19.4

Treasury stock (8,067) (7,634) (5.4)

Difference in value arising from restructuring transactions and other

transactions between entities under common control 478 478 -

Effect of change in equity of associated companies 386 386 -

Unrealized holding gain from available-for-sale securities 42 43 2.4

Translation adjustment 271 282 4.1Difference due to acquisition of non-controlling interest in subsidiaries (508) (508) -

Other reserves 49 49 -

Retained earnings

Appropriated 15,337 15,337 -

Inappropriate 37,440 36,212 (3.3)

Total Equity Attributable To Owners Of The Parent Company 51,541 50,966 (1.1)

Non-Controlling Interest 15,437 13,783 (10.7)

TOTAL EQUITY 66,978 64,749 (3.3)

TOTAL LIABILITIES AND EQUITY 111,369 111,472 0.1


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Table 2PERUSAHAAN PERSEROAN (PERSERO)

PT. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

SIX MONTHS ENDED JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES FOR 2012 (UNAUDITED)(in billions of Rupiah, except per share and per ADS data)

2012 2013 Growth (%)

REVENUES 36,720 40,160 9.4

EXPENSESOperations, maintenance and telecommunication services (8,235) (9,732) 18.2Depreciation and amortization (6,967) (6,940) (0.4)Personnel (4,165) (4,605) 10.6Interconnection (2,131) (2,371) 11.3Marketing (1,460) (1,339) (8.3)General and Administrative (1,447) (1,638) 13.2Loss on foreign exchange net (213) 100 (146.9)

Other income 379 339 (10.6)Other expense (180) (128) (28.9)

OPERATING PROFIT 12,301 13,846 12.6

Finance income 271 413 52.4Finance costs (565) (696) 23.2

Share of loss of associated companies (3) (6) 100.0

PROFIT BEFORE INCOME TAX 12,004 13,557 12.9

INCOME TAX (EXPENSE) BENEFITCurrent (3,230) (3,187) (1.3)Deferred 215 (237) (210.2)

(3,015) (3,424) 13.6

PROFIT FOR THE YEAR 8,989 10,133 12.7

OTHER COMPREHENSIVE INCOMEForeign currency translation 0 11 -Change in fair value of available-for-sale financial assets (1) 1 (200.0)

Total Other Comprehensive Income net (1) 12 (1,300.0)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 8,988 10,145 12.9

Profit for the period attributable to:Owners of the parent company 6,428 7,125 10.8Non-controlling interests 2,561 3,008 17.5

8,989 10,133 12.7

Total comprehensive income for the period attributable to:Owners of the parent company 6,427 7,137 11.0Non-controlling interests 2,561 3,008 17.5

8,988 10,145 12.9

BASIC AND DILUTED EARNINGS PER SHAREIncome per share 333.97 372.08 11.4Income per ADS (40 Series B shares per ADS) 13,358.80 14,883.20 11.4


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Table 3PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES

STATEMENT OF FINANCIAL POSITIONAS OF JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 (AUDITED)

(figures are presented in billions of Rupiah)

DEC 31, 2012 JUNE 30, 2013 Growt h (%)

ASSETS

CURRENT ASSETS

Cash & cash equivalents 4,787 4,419 (7.7)

Short-term Investments 4,000 - (100.0)

Accounts receivables including Unbilled revenues 1,045 1,274 21.9

Current portion of long-term prepayments 3,081 1,950 (36.7)

Others 669 775 15.8

Total Current Assets 13,582 8,418 (38.0)

NON-CURRENT ASSETS

Long-term investment 20 20 -

Fixed assets-net 46,480 48,565 4.5

Advances for fixed assets 558 482 (13.6)

Intangible assets-net 680 714 5.0

Prepayments Non Current Portion 1,327 1,745 31.5

Others 270 256 (5.2)

Total Non-Current Assets 49,335 51,782 5.0

TOTAL ASSETS 62,917 60,200 (4.3)

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable & Accrued Liabilities 8,071 9,524 18.0

Taxes payable 1,075 917 (14.7)

Unearned revenue 2,323 2,566 10.5

Current maturities of medium-term & long-term loans 1,472 1,477 0.3

Current portion of obligations under finance lease 98 219 123.5

Total Current Liabi lit ies 13,039 14,703 12.8

NON-CURRENT LIABILITIES

Medium-term & long-term loans - net of current maturities 2,013 1,269 (37.0)

Obligations under finance lease net of current maturities 1,057 2,060 94.9

Deferred tax liabilities 2,099 2,131 1.5

Others 877 988 12.7

Total Non-current Liabil ities 6,046 6,448 6.6

EQUITY

Capital Stock - Rp1,000,000 par valueAuthorized - 650,000 shares

Issued and fully paid - 182,570 shares 183 183 -

Additional paid-in capital 1,505 1,505 -

Retained earnings 42,144 37,361 (11.3)

Total Equit y 43,832 39,049 (10.9)

TOTAL LIABILITIES AND EQUITY 62,917 60,200 (4.3)


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Table 4

PT. TELEKOMUNIKASI SELULAR (TELKOMSEL) AND SUBSIDIARIES

STATEMENT OF COMPREHENSIVE INCOME

SIX MONTHS ENDED JUNE 30, 2013 (UNAUDITED) WITH COMPARATIVE FIGURES FOR 2012 (UNAUDITED)

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

2012 2013 Growt h (%)

REVENUES

Postpaid 2,143 2,232 4.2

Prepaid 21,146 23,552 11.4

Interconnection & International roaming 1,927 2,336 21.2

Other 211 351 66.4

Total Revenues 25,427 28,471 12.0

EXPENSES

Personnel 991 1,138 14.8

Operation & maintenance 5,363 6,335 18.1

General & administrative 439 582 32.6

Marketing 904 995 10.1

Interconnection 1,425 1,583 11.1

Cost of services 1,881 1,881 -

Depreciation 4,697 4,612 (1.8)

Others - net (40) (36) (10.0)

Total Expenses 15,660 17,092 9.1

Interest income & financing charges (17) 25 (247.1)

INCOME BEFORE TAX 9,749 11,404 17.0

INCOME TAX EXPENSE 2,454 2,829 15.3

NET INCOME 7,295 8,575 17.5

EBITDA 14,423 15,956 10.6

EBITDA Margin - over revenues 56.7% 56.0% -0.7

ROA 25.4% 29.2% 3.7

ROE 42.2% 45.6% 3.4

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