PT Sarana Menara Nusantara Tbk · IDX:TOWR

PT Sarana Menara Nusantara Tbk — Q1 2018 Earnings Presentation

24 slides from PT Sarana Menara Nusantara Tbk's earnings presentation, 2018

  1. Slide 1: Indonesia's Premier Telecommunication Infrastructure Company: 1Q 2018 Results Presentation

    Indonesia’s Premier Telecommunication Infrastructure Company 1Q 2018 Results Presentation PT Sarana Menara Nusantara, Tbk IDX ticker: TOWR.JK / TOWR IJ www.ptsmn.co.id

  2. Slide 2: Agenda

    Agenda Strategy & Achievements Market Overview Summary Financial Results © 2018 PT Sarana Menara Nusantara, Tbk 2

  3. Slide 3: Strategy & Achievements

    Divider slide Strategy & Achievements © 2018 PT Sarana Menara Nusantara, Tbk 3

  4. Slide 4: Executing "Build, Buy, Return" Strategy

    Executing “Build, Buy, Return” Strategy Strategy and Achievements Maintain position as the leading telecom Protelindo remains committed to maintaining its infrastructure company in Indonesia investment-grade rating, and plans to operate below net debt/last quarter annualised (LQA) 1 - Strong organic

  5. Slide 5: Market Overview

    Divider slide Market Overview © 2018 PT Sarana Menara Nusantara, Tbk 5

  6. Slide 6: Indonesia Macro Economy – Key Indicators

    Indonesia Macro Economy – Key Indicators An attractive investment environment • Market performance The Jakarta Composite Index Indonesian CPI Inflation Index The JCI Index gained ~20% in 7,000 7.00% 2017. Markets negatively 6,500 impacted on 1Q18 due to 6,337 concerns about the possibility 6,000 6.0

  7. Slide 7: Indonesia Telecom Industry – Outlook

    Indonesia Telecom Industry – Outlook Strong demand for data services expected over the next five years Top 5 Indonesian Wireless Indonesia's average mobile data usage remains Increasing smartphone penetration.. Operators by connections relatively low Data usage (MB) per connection per month Smartpho

  8. Slide 8: Indonesian Tower Industry – Key Growth Drivers

    Indonesian Tower Industry – Key Growth Drivers Potential for organic growth in line with the increasing demand for Telco services 1. Telecom industry coverage growth 2. Telecom industry capacity growth 3. iForte • Major operators are continuing to expand • Surging data demand is generating the • New

  9. Slide 9: Indonesian Tower Industry – Key Growth Drivers

    Indonesian Tower Industry – Key Growth Drivers Potential for organic growth in line with 4. Highly fragmented the market withincreasing demand for Telco services consolidation potential Total number of towers owned by ITCs in Indonesia: ~42,000 Proforma impact of KIN acquisition on Protelindo2 27,27

  10. Slide 10: Work orders in progress through March 2018

    Work orders in progress through March 2018 Subtitle runs here • Tenant Lease work orders for organic BTS & colo in progress through end of March 2018 Period Organic tenancies Full year 2017 Commenced 1,591 tenancies During 1Q 2018 Commenced nearly 400 tenancies YTD April 2018 Pipeline balance of ove

  11. Slide 11: Indonesia's tower company comparison

    Indonesia’s tower company comparison Net debt / LQA EBITDA Subtitle runs here 1.6x 1.5x 1.4x FY16 FY17 1Q18 (Dec 16) (Dec 17) (Mar 18) 1Q18 1Q18 1Q18 LQA Revenue (IDR bn) 5,447.8 4,145.3 1,961.6 LQA EBITDA (IDR bn) 4,671.1 3,582.2 1,701.7 EBITDA Margin 85.7% 86.4% 86.7% Interest Cost Annualized (IDR

  12. Slide 12: Debt profile

    Debt profile Debt maturity Subtitle runs here (stated in USD Mio) 2.2 47.3 21.1 52.5 4.4 71.8 154.7 11.3 81.8 9.5 10.2 7.5 138.4 138.4 38.0 10.0 47.3 116.7 81.8 21.1 48.1 61.8 2.6 7.5 10.2 2.2 4.4 4.4 8.7 9.5 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2018 2019 2020 2021 2022 2023 2024 IDR Loan IDR B

  13. Slide 13: And history of strong growth

    And history of strong growth Protelindo has demonstrated a strong track record of both organic and acquisition-led growth 2008 2009-2015 2016 2017-1Q 2018 • Strongest demand for new sites • Achieved Global • 2010 Go public and new equipment leases by • Purchased Hutch Investment Grade operators sinc

  14. Slide 14: Protelindo snapshot

    Protelindo snapshot Protelindo has demonstrated a strong track record of both organic and acquisition-led growth Diversified revenue Strong revenue mix servicing the growth of 15.3%(2) largest MNOs in and EBITDA growth Indonesia with 53% of 15.9%(2) of towers in Java Indonesia’s largest independent

  15. Slide 15: Summary Financial Results

    Divider slide Summary Financial Results © 2018 PT Sarana Menara Nusantara, Tbk 15

  16. Slide 16: Company's Performance Highlights Q1 2017 vs Q1 2018

    Company’s Performance Highlights Q1 2017 vs Q1 2018 Revenue (in IDR Bio) * 95.8 1,361.9 1,313.3 (47.2) (3.6%) 7.3% Reported Growth of 3.7% Actual Revenue Non-recurring New Lease Actual Revenue 1Q 2017 Revenue Revenue 1Q 2018 • Solid growth in new tenancies and additional equipment leases offset by n

  17. Slide 17: Company's Performance Highlights Q1 2017 vs Q1 2018

    Company’s Performance Highlights Q1 2017 vs Q1 2018 EBITDA (in IDR Bio) * 1,167.8 81.4 1,133.6 (47.2) (4.2%) 7.2% Actual EBITDA Non-recurring New Lease Actual EBITDA 1Q 2017 EBITDA EBITDA 1Q 2018 • Maintained EBITDA cash flow generating capacity with commencement of new lease revenue Notes: * Manage

  18. Slide 18: Tower Growth

    Tower Growth EBITDA (in IDR Bio) 414 15,001 14,587 2.8% Reported Increase of 2.8% Actual Towers Additional Actual Towers 1Q 2017 Towers 1Q 2018 • New BTS orders expected to continue to develop through 2018 © 2018 PT Sarana Menara Nusantara, Tbk 18

  19. Slide 19: Tenancy Growth

    Tenancy Growth EBITDA (in IDR Bio) 1,881 25,278 24,070 (673) (2.8%) 7.8% Reported Increase of 5.0% Actual Tenants Lease Expiry Additional Actual Tenants 1Q 2017 Tenants 1Q 2018 • New tenancies partially offset by non-renewal on some leases • Does not include 3,426 new revenue generating additional e

  20. Slide 20: Balance Sheet and Income Statement Snapshot

    Balance Sheet and Income Statement Snapshot EBITDA (in IDR Bio) In IDR Billions 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 (unless otherwise stated) Income Statement Revenue 1,313.3 1,329.9 1,334.6 1,360.1 1,361.9 Revenue Growth (QoQ) - 0.6% 1.3% 0.4% 1.9% 0.1% EBITDA 1,133.6 1,135.9 1,148.7 1,185.3 1,167.8 EBIT

  21. Slide 21: Change in Accounting on Protelindo

    Change in Accounting on Protelindo Balance Sheet Comparison* Dec - 2016 Dec - 2017 In IDR Billions • PSAK 13: Investment PSAK 16 PSAK 16 PSAK 13 Cost PSAK 13 Cost Properties, PSAK 16: Fixed Assets Equity Retained Earnings 10,201 5,998 11,712 6,546 • This is an accounting change only and does not imp

  22. Slide 22: SMN Consolidated Statement of Profit or Loss

    SMN Consolidated Statement of Profit or Loss Balance Chat(IDR Bn)Sheet Comparison 2015A 2016A 2017A 1Q 2018 Revenues 4,469.8 5,053.1 5,337.9 1,361.9 Cost of revenues (181.7) (209.5) (277.4) (78.0) Depreciation and amortization (1,026.5) (1,185.0) (894.9) (232.2) Gross income 3,261.6 3,658.7 4,165.6

  23. Slide 23: SMN Consolidated Statement of Financial Position

    SMN Consolidated Statement of Financial Position As at 31 March 2018 (IDR Bn) 2015A 2016A 2017A 1Q 2018 ASSETS Current assets Cash and cash equivalents 2,986.8 2,905.3 2,348.3 1,281.3 Trade receivables 470.5 351.7 624.0 1,696.3 Other receivables 0.8 1.3 22.4 4.5 Inventories 11.1 – - - Prepaid expens

  24. Slide 24: Disclaimer

    This presentation material has been prepared solely for use in a presentation to be made by PT Sarana Menara Nusantara Tbk (the “Company”). This presentation material and any information contained herein is highly confidential and may not be copied, reproduced, redistributed, transmitted or disclose

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