Pt Solusi Tunas Pratama Tbk · IDX:SUPR
Pt Solusi Tunas Pratama Tbk — Investor Presentation (November 2018)
33 slides from Pt Solusi Tunas Pratama Tbk's investor presentation, November 2018
Slide 1: Company Presentation PT Solusi Tunas Pratama Tbk
Company Presentation PT Solusi Tunas Pratama Tbk November 2018
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. These materials are highly confidential and are being given solely for your information and for your use. By accepting these materials you agree that you w
Slide 3: Company Overview
Company Overview 2
Slide 4: Indonesia's premier wireless data network infrastructure provider
Indonesia’s premier wireless data network infrastructure provider 6,070 towers and 538 microcell poles with 11,189 tenants ~87% of revenue from 2,929 km fiber the top-4 telcos1 optic network 9M 2018 EBITDA 37 indoor DAS margin of 86.3% sites with 52 tenants Note: 1Revenues from Telkom Group includes
Slide 5: Key investment highlights
Key investment highlights 1 Prime provider of tower and fiber telecom infrastructure in Indonesia 2 Strong execution track record of both organic and inorganic growth Entrenched customer relationships underpinning significant high 3 quality contracted revenue backlog 4 Data network / LTE infrastruct
Slide 6: Prime provider of tower and fiber telecom infrastructure in Indonesia
1 Prime provider of tower and fiber telecom infrastructure in Indonesia Tower, microcell and DAS Fiber 2,929 km Fiber Others 12% Java 64% Medan 102 Batam – Singapore 84 Sumatra 24% 64% 6,070 Towers of towers in Java 1 (28% in Jakarta) Kalimantan 538 Microcells Sumatra Bandung Jatim – Kalsel 37 Distr
Slide 7: Strong execution track record…
2 Strong execution track record… Towers Tenants Revenue (IDR Bn) 1,881 6,608 11,189 > 5.9x > 7.3x > 6.6x increase in increase in increase in towers tenants revenues 1,121 286 1,539 2010 3Q 2018 2010 3Q 2018 2010 Ann. 3Q 2018 6
Slide 8: …of both organic and inorganic growth
2 …of both organic and inorganic growth Build-to-suits (“BTS”) towers1 Acquired towers 418 3,642 329 238 244 1,274 116 521 493 50 35 Pre-2012 2012 2013 2014 2015 2016 2017 Pre-2012 2012 2013 2014 Note: 1In gross tower additions p.a. Indonesia's third largest listed independent tower portfolio with 1
Slide 9: Entrenched customer relationships underpinning significant high quality backlog
Entrenched customer relationships underpinning significant high quality 3 backlog 3Q 2018 Revenue breakdown (%) Tenancies expiry schedule Others 0 – 2 years 12.9% 6.9% 6.9% 7+ years 25.0% 39.9% 11,189 3 – 4 years 20.8% Revenue 21.5% Tenancies 5 – 6 years 19.6% 46.9% Key customers are Indonesia’s f
Slide 10: Data network / LTE infrastructure services are our key differentiators
4 Data network / LTE infrastructure services are our key differentiators STP’s data network / LTE infra related products and services Wi-fi access Our IBS / Indoor Mobile point & Fiber to the MCP ISP services capabilities DAS backhaul hotspot home services leasing Telecom Telecom Telecom operators o
Slide 11: Consistent growth with industry-leading profitability metrics
5 Consistent growth with industry-leading profitability metrics Strong growth trajectory with industry-leading profitability metrics (IDR Bn) (IDR Bn) 112 2,000 85.9% 85.3% 86.2% 86.3% 86.3% 90.0% 1,800 82.9% 1,600 1,400 112 80.0% 1,200 99 1,908 1,8811,000 1,674 1,821 89 800 99 1,554 1,646 1,618 600
Slide 12: Well-utilized balance sheet
6 Well-utilized balance sheet 3Q18 net debt build-up Prudent risk management policy IDR Bn FX hedges in place to mitigate volatility in currency and 4.9x (0.4x) (0.2x) 4.3x interest rate 7,885 6,903 (705) (276) 59% of all outstanding debt is USD denominated which is 100% hedged against FX risk f
Slide 13: Strong management team
7 Strong management team Nobel Tanihaha Juliawati Gunawan Tommy Gustavi Utomo President Director Director Director • President Director of STP since • Financial Controller of STP from • Head of Property Management 2006 2009 to 2011, and Director of of STP from 2012 to 2013, and STP since 2011 Direct
Slide 14: Growth Strategy
Growth Strategy 13
Slide 15: Our four pillars of organic growth
Our four pillars of organic growth CONTINUED PRUDENT & SELECTIVE M O N E T I Z AT I O N O F E X PA N S I O N O F GROWTH TO COLOCATION BUILD-TO-SUIT FIBER ON EXISTING ROLL-OUT ASSETS NEW VECTORS PORTFOLIO 14
Slide 16: Significant tenancy ratio expansion potential
Significant tenancy ratio expansion potential Evolution of our tenancies1 over time 1.71x 1.66x 1.65x 1.60x 1.51x 2013A 2014A 2015A 2016A 2017A Upside in tenancy ratio driven by capacity growth Deployment of higher frequency spectrum is expected to increase as Illustrative overview of coverage are
Slide 17: Expansion of growth to new vectors
Expansion of growth to new vectors Home fiberisation Enterprise solution Partnership with icon+ unlocks potential of home Signed a framework agreement with Hitachi to jointly fiberization provide data center and cloud services to enterprises in Indonesia Solution for telecom operators to offlo
Slide 18: Highly fragmented market provides inorganic growth opportunities
Highly fragmented market provides inorganic growth opportunities Indonesia independent tower market 1 # of towers Total towers of c. 42,000 2 17,234 13,765 6,608 1,225 719 500 Protelindo Tower Bersama STP Bali Tower Centrin Gihon Indonesia independent tower market is highly fragmented, and thus of
Slide 19: Industry Overview
Industry Overview 18
Slide 20: Indonesia has one of the most attractive tower markets globally…
Indonesia has one of the most attractive tower markets globally… Indonesia Tower Market Global Tower Market Benchmarking High barriers to entry including local regulations Independent Independent Independent 2 Captive Business model Significant growth opportunity Lease rate per tenant 900 – 1,10
Slide 21: …underpinned by strong organic growth fundamentals
…underpinned by strong organic growth fundamentals Network Coverage Expansion Palapa Ring ● Telkomsel currently has c. 30,000 coverage sites ● A nationwide fibre optic backbone expected to improve internet access across towns and villages in ex-Java where standalone ● To achieve similar coverage, In
Slide 22: Indonesia's telecom sector is transitioning from 3G to 4G…
Indonesia’s telecom sector is transitioning from 3G to 4G… Indonesia’s 4G network roll-out is just beginning… …with 55% of SIM card users expected to use 4G by 2021 Industry1 BTS (‘000) 2G 3G 4G Wireless SIM base (MM) 2G 3G 4G Penetration 323 +28k 47 270 19 132% +11k 129% 125% 121% 117% 213 113% 109
Slide 23: …as demand for mobile data continues to boom
…as demand for mobile data continues to boom We are only in the first inning of Indonesia's mobile data revolution… Mobile data usage per connection is Mobile connections are expected to Smartphone penetration is expected expected to increase 14.2x from 2015 to account for 92% of total broadband to
Slide 24: Indonesia's fixed broadband market is nascent
Indonesia’s fixed broadband market is nascent Indonesia has amongst the lowest fixed broadband penetration… …and a relatively low average fixed broadband speed (%) Mbps 104% 28.6 88% 86% 21.9 20.3 34% 8.9 7.2 9% Korea Singapore Hong Kong Malaysia Indonesia Korea Hong Kong Singapore Malaysia Indonesi
Slide 25: Appendix: Summary Financials
Appendix: Summary Financials 24
Slide 26: Income statement
Income statement Income statement (in IDR millions, unless otherwise specified) 2013 2014 2015 2016* 2017 9M 2017* 9M 2018 (in IDR millions) (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Revenue 840,097 1,071,929 1,785,853 1,821,446 1,908,487 1,442,345 1,438,652 Cost of R
Slide 27: Statements of financial position (assets)
Statements of financial position (assets) Statements of financial position (Assets, in IDR millions, unless otherwise specified) 2013 2014 2015 2016* 2017* 3Q 2018 (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) Current Assets Cash and Cash Equivalents 525,226 1,318,888 229,325 184,996
Slide 28: Statements of financial position (liabilities)
Statements of financial position (liabilities) Statements of financial position (Liabilities, in IDR millions, unless otherwise specified) 2013 2014 2015 2016* 2017* 3Q 2018 (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) Current Liabilities Trade Payables - Related Party 18,007 3,562
Slide 29: Statements of financial position (equity)
Statements of financial position (equity) Statements of financial position (Equity, in IDR millions, unless otherwise specified) 2013 2014 2015 2016* 2017* 3Q 2018 (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) Equity Issued and Paid-Up Capital 79,429 79,436 113,758 113,758 113,758 11
Slide 30: Statements of cash flows
Statements of cash flows Statements of cash flows ( in IDR millions) 2013 2014 2015 2016* 2017 3Q 2018 (Audited) (Audited) (Audited) (Audited) (Audited) Unaudited) Cash Flows from Operating activites Cash Received from Customers 603,107 1,432,225 1,201,587 1,622,474 2,225,161 1,538,332 Payment to Su
Slide 31: Appendix: Additional Materials
Appendix: Additional Materials 30
Slide 32: Proven track record of sites acquisition and synergies extraction
Proven track record of sites acquisition and synergies extraction Track record in acquisition of sites with high colocation potential Key criteria for target tower portfolios Tenancy ratio at Year Seller # towers acquisition High potential for future co-locations 20071 Axis 528 1.00x 2009 Bakrie 5
Slide 33: XL towers case study
XL towers case study Deal Structure1 We have steadily improved tenancy ratios since the acquisition Towers acquired 3,500 Tenancy ratio (x) 1.72 Tenants acquired 5,793 1.71 Tenancy ratio 1.66x Purchase price IDR5,600Bn / c. US$464MM 1.69 EBITDA multiple 8.0-8.5x EBITDA Value per tower IDR1,600MM / c
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