Singapore Telecommunications : Singtel Investor Day 2023 - Telkomsel

SINGTEL INVESTOR DAY

24 AUGUST 2023

MOHAMAD RAMZY - DERRICK HENG

CFRO - CMO TELKOMSEL

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Disclaimer

This document may contain forward-looking statements which actual results could differ materially from projections, estimations or expectations. These may involve risks and uncertainties and may cause actual results and development to differ substantially from those expressed or implied in the statements. The company does not guarantee that any action, which may have been taken in reliance of this document will bring specific results as expected.

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Resilience of the national economy and Indonesian cellular industry

Economic recovery projected to grow at around 5.0% YoY with inflation rate remain under control as of June 23 at 3.5% YoY. The declined of poverty rate demonstrated the resilience of the national economy

GDP - INFLATION RATE - POVERTY RATE

9.66%	9.22%	10.19%	9.71%	9.57%	9.36%
5.17%		5.02%		3.69%	5.31%	5.20%
							5.51%
						1.68%
3.13%					Fuel	3.70%
	2.72%			adjustment
					1.87%	impact
2018		2019	2020	2021	2022	2023F
		GDP		Inflation		Poverty Rate -2.07%

Source: BPS.co.id, Analyst Report of Ciptadana, IndoPremier, Mandiri Sekuritas

2023 Economy Projection

Optimistic Indonesia economic outlook to grow around 5.0 - 5.2%

Under control inflation rate at around 3.2 -

3.7%

Decline of poverty rate of the period of pre pandemic levels at 9.36%

Align with better economic condition, TSEL continue to implement healthy conduct and improve customer productivity resulting strong ARPU growth and traffic improvement with yield stabilization. However, naturally decline in Legacy suppressed overall growth

	YOY				INDUSTRY
REVENUE				(BIG 3)
				+4.9%
					77.2	81.0
					9.0
		+1.0%			11.5
CELLULAR			-21.9%
+7.4%	(80.5%)	44.0
		43.6
	-25.7%	8.5	6.3	+9.5%	65.7	72.0
			(88.9%)
					(85.1%)
		35.1	37.7
		(85.6%)
Internal		1H22	1H23		1H22	1H23

QoQ				INDUSTRY
			(BIG 3)
				+6.0%
Revenue by				39.3	41.6
			4.3
Service	+4.7%		4.7
Non-Data
21.5	22.5	-7.3%
			37.3
-11.4%	3.3	3.0	+7.7%	34.6
	(89.6%)
		(88.2%)
Data		19.5
18.2
+7.7%
(86.8%)
	(84.4%)
*) TSEL Data includes Digital Service	1Q23	2Q23		1Q23	2Q23

H1 23 positive momentum of growth underpinned by Digital Business revenue as a result of healthy conduct initiative with pricing rationalization

	Digital Business Revenue (Rp Bn)
			ARPU (Rp 000)						YIELD (RPMB)
						+7.4%												4.1		4.2	4.3	4.1	4.1
							37,693
					35,082				+9.8%
			+7.7%											+13.1%				Data Payload (PB)
										49.7			47.5
								45.3											+9.4%
									42.0
			19,543
	18,150
																			+7.0%				8,524
																						7,794
																					4,406
																		4,119
																			1Q23		2Q23	1H22	1H23
	1Q23	2Q23	1H22	1H23		1Q23	2Q23	1H22		1H23

• ARPU uplift opportunity from cellular - FWA - FBB - FMC and potency of improvement in data consumption per customers compare with region
• Traffic improvement with stabilization of data yield as we applying right pricing initiative and stimulate customer productivity
• As we consistently applying cost efficiency initiative, we able to secure profitability and sustainable margin

EBITDA Margin Trend

54.0%	58.7%	57.2%	56.7%	56.0%				TSEL able to consistently
											maintain sustainable margin
										AVG. INDUSTRY
43.8%	49.9%	50.2%	49.1%	50.2%			(BIG 3)	higher than industry for the
2019	2020	2021	2022		1H23	last 4 years

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Strategic actions to seize opportunities and ensure business sustainability

Healthy		Fixed Mobile		Digital Business		Securing
Conduct & CVM		Convergence		portfolio		profitability

➢ Right Pricing & Right	➢	Maintain business	➢	Improve	➢	Managing top-line
	Offering		continuity		Productivity	➢	Cost optimization
➢	Market share	➢	Leverage existing	➢	Capture growth		measures
	recovery		asset, scale, and		opportunities	➢	Network
➢	Personalization,		maximize data	➢	Secure long-term		improvement &
	Segmentation &		analytics		growth		optimization

Differentiation

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