Pt Solusi Tunas Pratama Tbk · IDX:SUPR
Pt Solusi Tunas Pratama Tbk — Investor Presentation (April 2018)
34 slides from Pt Solusi Tunas Pratama Tbk's investor presentation, April 2018
Slide 1: Company Presentation PT Solusi Tunas Pratama Tbk
Company Presentation PT Solusi Tunas Pratama Tbk Apri l 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: Table of Content
Table of Content Company Overview 3 Growth Strategy 14 Industry Overview 19 Appendix 25 2
Slide 4: Company Overview
Company Overview 3
Slide 5: Indonesia's premier wireless data network infrastructure provider
Indonesia’s premier wireless data network infrastructure provider 6,333 towers and 562 microcell poles with 11,774 tenants ~89% of revenue from 2,847 km fiber the top-4 telcos1 optic network 2017 EBITDA 38 indoor DAS margin of 86.2% sites with 63 tenants Note: 1Revenues from Telkom Group includes Te
Slide 6: 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 7: 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 2,847 km Fiber Others 8% Java Sumatra 69% Medan 102 23% Batam – Singapore 84 69% 6,333 Towers of towers in Java 1 (28% in Jakarta) Kalimantan 562 Microcells Sumatra Bandung Jatim – Kalsel 38 Distri
Slide 8: Strong execution track record…
2 Strong execution track record… Towers Tenants Revenue (IDR Bn) 6,895 11,774 1,908 > 6.2x > 7.7x > 6.7x increase in increase in increase in towers tenants revenues 1,121 286 1,539 2010 2017 2010 2017 2010 2017 7
Slide 9: …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 10: Entrenched customer relationships underpinning significant high quality backlog
Entrenched customer relationships underpinning significant high quality 3 backlog 2017 Revenue breakdown (%) Tenancies expiry schedule Others 0 – 2 years 11.3% 10.9% 6.6% 7+ years 47.5% 41.1% 11,774 3 – 4 years 20.5% Revenue 23.4% Tenancies 5 – 6 years 20.5% 18.2% Key customers are Indonesia’s fou
Slide 11: 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 12: 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) 2,000 85.9% 85.3% 86.3% 90.0% 112 1,800 85.3% 1,600 82.9% 1,400 112 80.0% 1,200 99 1,908 1,000 1,674 1,821 89 800 99 1,554 1,646 600 89 1,422 70.0% 9
Slide 13: Well-utilized balance sheet
6 Well-utilized balance sheet 4Q17 net debt build-up Prudent risk management policy IDR Bn FX hedges in place to mitigate volatility in currency and 4.9x (0.3x) (0.2x) 4.4x interest rate 7,852 7,082 74% of all outstanding debt is hedged against interest rate (490) (280) fluctuation risk2 53% o
Slide 14: 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 15: Growth Strategy
Growth Strategy 14
Slide 16: 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 15
Slide 17: 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 18: 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 19: 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 14,854 13,461 6,895 1,400 1,040 719 500 Protelindo Tower Bersama STP KIN Bali Tower Centrin Gihon Indonesia independent tower market is highly fragmented, a
Slide 20: Industry Overview
Industry Overview 19
Slide 21: 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 22: …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 23: 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 24: …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 25: 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 26: Appendix: Summary Financials
Appendix: Summary Financials 25
Slide 27: Income statement
Income statement Income statement (in IDR millions, unless otherwise specified) 2013 2014 2015 2016* 2017 (in IDR millions) (Audited) (Audited) (Audited) (Audited) (Audited) Revenue 840,097 1,071,929 1,785,853 1,821,446 1,908,487 Cost of Revenue Depreciation and Amortization (103,818) (117,791) (186
Slide 28: 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 (Audited) (Audited) (Audited) (Audited) (Audited) Current Assets Cash and Cash Equivalents 525,226 1,318,888 229,325 184,996 280,149 Trade Receiv
Slide 29: 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 (Audited) (Audited) (Audited) (Audited) (Audited) Current Liabilities Trade Payables - Related Party 18,007 3,562 293 17,227 9,578 - Th
Slide 30: 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 (Audited) (Audited) (Audited) (Audited) (Audited) Equity Issued and Paid-Up Capital 79,429 79,436 113,758 113,758 113,758 Additional Paid-in Capi
Slide 31: Statements of cash flows
Statements of cash flows Statements of cash flows ( in IDR millions) 2013 2014 2015 2016* 2017 (Audited) (Audited) (Audited) (Audited) (Audited) Cash Flows from Operating activites Cash Received from Customers 603,107 1,432,225 1,201,587 1,622,474 2,225,161 Payment to Suppliers and Opex (371,175) (7
Slide 32: Appendix: Additional Materials
Appendix: Additional Materials 31
Slide 33: 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 34: 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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