Pt Solusi Tunas Pratama Tbk · IDX:SUPR
Pt Solusi Tunas Pratama Tbk — Investor Presentation (April 2014)
31 slides from Pt Solusi Tunas Pratama Tbk's investor presentation, April 2014
Slide 1: Investor Presentation
Investor Presentation PT Solusi Tunas Pratama Tbk April 2014
Slide 2: Disclaimer
Disclaimer These materials have been prepared by PT Solusi Tunas Pratama, Tbk (“STP” or the “Company”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information
Slide 3: Contents
Contents Section 1 Introduction to STP 1 2 Favorable industry backdrop 4 3 Key investment highlights 7 4 Strong financials performance and funding headroom 14 5 Well positioned for growth 17 Appendix I Additional materials 18
Slide 4: Introduction to STP
Section 1 Introduction to STP
Slide 5: Company overview
Company overview Third largest and fast growing independent Indonesian tower company Unique combination of tower assets and fiber network Founded in 2006 Listed on IDX in Oct 2011 Current market cap of US$593m(a) Top 3 independent Indonesian tower company All telecom operators and two LTE operators
Slide 6: Key corporate milestones
Key corporate milestones Fast growth business transformation from pure-play tower company to an integrated telco services provider 2012: Successful rights issue of 135m new shares at IDR 4,800 per share and 2012: 59.4m warrants Expanded into fiber optics convertible into 59.4m infrastructure through
Slide 7: Attractive business model
Attractive business model Stable, recurring and predictable revenues Traditional service line New service lines • Lease space on our towers sites to telcos • Lease space on our micro cell poles to • Offer efficient backhaul solutions for for placing their antennas and other telecom traditional telco
Slide 8: Favorable industry backdrop
Section 2 Favorable industry backdrop
Slide 9: Robust growth in telecom industry in Indonesia
Robust growth in telecom industry in Indonesia Data revenues are growing much faster than voice Strong growth in 3G subscribers or text 3G Revenue growth by segment (YoY as of 9M 2013) 7% 9% 13% penetration(a) 32.2% 44 3G subscribers (m) 28 18 4.6% 2.5% 2011 2013E 2017E Voice SMS Data (a) Calculated
Slide 10: Favourable tower industry dynamics in Indonesia
Favourable tower industry dynamics in Indonesia Except for Telkomsel, telcos are generating Highest capex ratio in the region (2013E) low FCFF 2013 EBITDA – capex 1,944 31.8% Average % of Capex as revenue 22.2% 14.7% 12.4% 186 83 Negative FCFF Telkomsel (a) Indosat (a) XL (a) Sinarmas Bakrie Indones
Slide 11: High entry barriers into our industry
High entry barriers into our industry Indonesian market very conducive to tower and fiber company business model Government regulations • On 30 March 2009, four Ministries issued a Joint Decree regarding Construction and Utilization of Shared Telecommunication Towers. The Joint Decree strongly promo
Slide 12: Key investment highlights
Section 3 Key investment highlights
Slide 13: Key investment highlights
Key investment highlights 1 Proven growth track record in a fast emerging sector with high entry barriers 2 National presence with asset concentration in the lucrative Greater Jakarta region 3 Rapidly diversifying client base towards leading telcos in Indonesia Unique fiber network, providing abilit
Slide 14: Proven growth track record in a fast emerging sector with high entry barriers
1 Proven growth track record in a fast emerging sector with high entry barriers Towers have grown by 150% in last 3 years Tower tenancies have grown by 205% Current tenancy ratio leaves room for upside Tenancy 1.37x 1.53x 1.62x 1.68x ratio 4,708 3,159 2,798 1,946 1,998 1,539 1,309 1,121 2010 2011 20
Slide 15: Robust organic growth momentum and an effective M&A strategy
1 Robust organic growth momentum and an effective M&A strategy Organic tower addition by STP – growth More efficient acquisitions and accelerated integration is accelerating Acquisition Year Acquisition Annual tower addition completion 418 NTS Tower Acquisition • 528 towers located in Jakarta and Gr
Slide 16: National presence with asset concentration in the lucrative Greater Jakarta region
2 National presence with asset concentration in the lucrative Greater Jakarta region Tower assets are strategically located across Indonesia No. of towers Area Growth 2012 2013 Greater Jakarta 1,164 1,352 188 Java 566 984 418 Sumatra Kalimantan Sumatera 142 227 85 Sulawesi Kalimantan - Papua 32 100
Slide 17: Rapidly diversifying client base towards leading telcos in Indonesia
3 Rapidly diversifying client base towards leading telcos in Indonesia STP has successfully diversified its customer base towards high quality operators 2009 4Q 2013 Revenue breakdown by operators Tier 1 customers = 1.9% Indosat Telkom Telkomsel 1.5% 0.2% Indosat 0.2% Bakrie 4.9% 16.7% Telkom 10.8%
Slide 18: Unique fiber network, providing ability to deploy LTE solutions with superior economics
4 Unique fiber network, providing ability to deploy LTE solutions with superior economics We have a high quality portfolio of fiber assets (km) • 2,073km of fiber optic assets as of Dec 2013 • - of which 1,000+km is in Jakarta • Offering fiber backhaul solutions to telecom operators Medan • Rolli
Slide 19: Experienced management team and reputable Board
5 Experienced management team and reputable Board Board of Directors Nobel Tanihaha Juliawati Gunawan Yan Heryana Eko Abdurrahman Saleh Tommy Gustavi Utomo President Director Finance Director Marketing Director Operations Director Property Management • 7 years on the BoD • 3 years on the BoD • 2 yea
Slide 20: Strong financials performance and funding headroom
Section 4 Strong financials performance and funding headroom
Slide 21: Robust revenue and EBITDA growth
Robust revenue and EBITDA growth Revenue growth (IDRbn) EBITDA growth (IDRbn) 783 959 693 840 442 529 331 254 278 286 2010 2011 2012 2013 LQA 2013 2010 2011 2012 2013 LQA 2013 EBIT growth (IDRbn) EBITDA & EBIT margins (%) 666 89% 582 84% 84% 83% 354 70% 68% 67% 69% 202 223 2010 2011 2012 2013 LQA 20
Slide 22: Diversified loan maturity, debt headroom for growth and prudent FX hedging
Diversified loan maturity, debt headroom for growth and prudent FX hedging Total debt and net debt (IDRbn) Debt repayments over 5 years (IDRbn) 2,787 Debt repayment schedule 1,115 2,250 599 902 907 432 362 589 279 293 229 255 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E Debt Net debt Leverage r
Slide 23: Key accounting policies
Key accounting policies • Rental income from operating lease is recognized as revenue when earned. The rental received in advance is Revenue & presented as “deferred income” and recognized as income on a straight-line basis over the lease term expenses • Expenses are recognized as incurred (accrual
Slide 24: Well positioned for growth
Section 5 Well positioned for growth
Slide 25: Our growth strategies
Our growth strategies 1 Grow tenancies on our existing tower portfolio to drive ROIC Continue expansion pre-dominantly in high density locations with 2 leading telcos Selectively expand our fiber network and increase in-building solutions 3 footprint in high traffic areas 4 Build on our first mover
Slide 26: Additional materials
Appendix I Additional materials
Slide 27: Key financial performance
Key financial performance 2009 2010 2011 2012 2013 (in IDR millions) (Audited) (Audited) (Audited) (Audited) (Audited) Revenues 197,426 286,366 330,956 529,408 840,096 Growth 405% 45% 16% 60% 59% Cost of revenue 11,172 16,866 23,679 41,705 70,809 Operating expenses 13,310 15,613 28,963 45,656 76,146
Slide 28: Balance sheet and capital structure
Balance sheet and capital structure 2009 2010 2011 2012 2013 (in IDR billions) (Audited) (Audited) (Audited) (Audited) (Audited) Consolidated Balance Sheet Current assets 213 340 965 917 1,370 Non-current Assets 1,137 1,458 1,880 2,965 4,941 Total assets 1,349 1,799 2,845 3,882 6,311 Current liabili
Slide 29: Organisation structure
Organisation structure Board of Commissioners Audit Committee President Director Internal Audit Corporate Secretary Quality Management Sales and Finance and Property Supply Chain Planning and Operations Human Resources Marketing Accounting Management Management Engineering People and Sales Project C
Slide 30: Key features of our Master Lease Agreements ("MLAs")
Key features of our Master Lease Agreements (“MLAs”) • Long term contract Tenor • 10 – 12 years for Towers and 5 years for Indoor DAS Network Termination penalty • Customers shall pay the rental fee for the entire remaining term of the MLA Base rental • Rental fee is fixed for the whole period of th
Slide 31: Thank you
stp) Thank you
PT Solusi Tunas Pratama — Investor Presentation (April 2014) on 6ix