Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia (TLKM) Corporate presentation summary

Strategic transformation and operational highlights

• Continued execution of the TLKM30 transformation, focusing on operational excellence, streamlining, value unlocking, and a shift to a HoldCo-OpCo model for improved transparency and efficiency.

• Completed Phase-1 spin-off of fiber assets to Infranexia, transferring over 50% of selected assets valued at Rp 35.8tn, with Phase-2 and data center monetization underway.

• Implemented accounting policy changes, including revised asset useful lives, and strengthened governance with new compliance structures and enhanced disclosure protocols.

• Share buyback programs approved and executed, with Rp 3tn allocated and 195mn shares repurchased as of March 2026.

Financial performance and segment results

• 1Q26 consolidated revenue grew 1.5% YoY to Rp 37.2tn, driven by digital business and mobile ARPU growth, while EBITDA margin was 48.3% and net income declined 21.7% YoY due to higher D&A and investment MTM losses.

• B2C revenue rose 2.3% YoY, led by a 13.9% increase in Data, Internet & IT Services; B2B Infra grew 6.8% YoY, while B2B ICT and International segments saw declines due to restructuring and market shifts.

• Free cash flow to the firm (FCFF) increased 15.5% YoY to Rp 43.3tn, supported by resilient operating cash flow and lower capex.

• Capex remained disciplined at Rp 4.9tn in 1Q26, with over 96% allocated to B2C and B2B Infra for digital connectivity expansion.

Telkomsel performance and convergence strategy

• Telkomsel maintained pricing discipline, driving ARPU up 6.4% YoY to Rp 45.1k and supporting EBITDA growth of 6.9% YoY to Rp 13.1tn.

• Normalized net income for Telkomsel rose 7.1% YoY to Rp 5.4tn, reflecting improved earnings quality.

• IndiHome B2C added 3k new subscribers, with convergence penetration at ~60%, strengthening household ecosystem engagement.