Pt Solusi Tunas Pratama Tbk · IDX:SUPR
Pt Solusi Tunas Pratama Tbk — Investor Presentation (March 2014)
32 slides from Pt Solusi Tunas Pratama Tbk's investor presentation, March 2014
Slide 1: Investor Presentation
Investor Presentation PT Solusi Tunas Pratama Tbk March 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 5 3 Key investment highlights 8 4 Strong financial performance 16 5 Well positioned for growth 19 Appendix I Additional materials 20
Slide 4: Introduction to STP
Section 1 Introduction to STP
Slide 5: STP company overview
STP company overview Third largest 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$622m(a) Top 3 independent tower company in Indonesia All telecom operators and two LTE operators are current
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 • Lease space at our sites to telecommunication operators Traditional service line for antennas and other telecom equipment for wireless signal transmission under long term agreements • Essentially a leasing business with an anchor tenant from day one – no speculative new
Slide 8: 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 • Customer shall pay the rental fee for the entire remaining term of the MLA Base rental • Rental fee is fixed for the whole period of the
Slide 9: Favorable industry backdrop
Section 2 Favorable industry backdrop
Slide 10: 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 11: Favourable tower industry dynamics in Indonesia
Favourable tower industry dynamics in Indonesia Low tower availability in Indonesia Telcos are capital constrained (2013E) 3,905 31.8% Average % of Capex Population/tower as revenue 2,600 22.2% 14.7% 12.4% Indonesia India Indonesia Philippines Malaysia Singapore Note: Average for Indonesia comprises
Slide 12: High entry barriers into our industry
High entry barriers into our industry Indonesian market very conducive to tower and fiber company business model • Ownership of tower companies must comply with the Negative List Regulatory • The Negative List was last amended to include tower companies (prohibiting foreign investment in private tow
Slide 13: Key investment highlights
Section 3 Key investment highlights
Slide 14: Key investment highlights
Key investment highlights 1 Proven growth track record in a fast emerging sector 2 National presence with asset concentration in Greater Jakarta 3 Rapidly diversifying client base towards top tier operators Valuable domestic fiber assets to offer integrated, LTE ready, last mile access 4 solutions 5
Slide 15: Proven track record of growth
1 Proven track record of growth 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 2012 2013 2010 2011 2012 2013 Source: Company data
Slide 16: Robust organic momentum and an effective M&A strategy
1 Robust organic momentum and an effective M&A strategy Organic tower by STP – growth is More efficient acquisitions and accelerated integration accelerating Acquisition Year Acquisition completion 569 NTS Tower Acquisition • 528 towers located in Jakarta and Greater Jakarta 2007 2 years • Contracte
Slide 17: National presence with asset concentration in Greater Jakarta
2 National presence with asset concentration in Greater Jakarta 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 Sumatera 142 227 85 Kalimantan - 32 100 68 Sulawesi Bali – Nusa Tenggara 25 118 93 Papua 17 17
Slide 18: Rapidly diversifying client base towards top tier operators
3 Rapidly diversifying client base towards top tier operators STP has successfully diversified its customer base towards high quality operators Revenue breakdown by operators 2% Tier 1 operators (a) 44% 48% 61% Others (b) 35% 34% Bakrie 37% 21% 18% 2009 9M 2013 Q3-13 Relationships with all the telco
Slide 19: Valuable domestic fiber assets to offer integrated, LTE ready, last mile access solutions
4 Valuable domestic fiber assets to offer integrated, LTE ready, last mile access solutions We have a quality portfolio of fiber assets (km) • 2,073km of fiber optic assets as of Dec 2013 • Offering fiber backhaul solutions to telecom operators Medan • Rolling out micro cell sites for LTE service
Slide 20: Strong EBITDA growth; conservative leverage and cash balances
5 Strong EBITDA growth 6 Conservative leverage and cash balances to drive further growth Conservatively geared and IDR 764bn (US$68m) cash on hand EBITDA (IDRbn) for STP to take advantage of market opportunities Leverage ratio (as of Sep 2013) 497 (b) 3.8x 442 (b) 2.7x 278 254 (a) (a) 2010 2011 2012
Slide 21: Experienced, forward looking management team and reputable Board of Commissioners
7 Experienced, forward looking management team and reputable Board of Commissioners 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 th
Slide 22: Strong financial performance
Section 4 Strong financial performance
Slide 23: Robust revenue and EBITDA growth
Robust revenue and EBITDA growth Revenue growth (IDRbn) EBITDA growth (IDRbn) 600 497 529 442 331 278 286 254 2010 2011 2012 9M 2013 2010 2011 2012 9M 2013 EBIT growth (IDRbn) EBITDA & EBIT margins (%) 415 89% 84% 84% 83% 354 223 70% 68% 67% 69% 202 2010 2011 2012 9M 2013 2010 2011 2012 9M 2013 EBIT
Slide 24: Conservative capital structure, well spread loan maturity profile and FX hedging
Conservative capital structure, well spread loan maturity profile and FX hedging Total debt and net debt (IDRbn) Debt repayments over 5 years (IDRbn) 2,787 Debt repayment schedule 1,115 2,011 599 902 907 432 362 589 279 293 229 255 2010 2011 2012 9M 2013 2014E 2015E 2016E 2017E 2018E Debt Net debt L
Slide 25: 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 26: Well positioned for growth
Section 5 Well positioned for growth
Slide 27: Our growth strategies
Our growth strategies 1 Focus on building towers in high density locations 2 Continue raising organic growth contribution 3 Further increase contribution from Tier 1 telcos 4 Expand fiber optic network and inbuilding coverage Offer ready and integrated solutions for next generation telco networks, 5
Slide 28: Additional materials
Appendix I Additional materials
Slide 29: Key financial performance
Key financial performance 2009 2010 2011 2012 9M 2012 9M 2013 (in IDR millions) (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Revenues 197,426 286,366 330,956 529,408 351,210 600,339 Growth 405% 45% 16% 60% 46% 71% Cost of revenue 11,172 16,866 23,679 41,705 28,308 51,084 Operating
Slide 30: Balance sheet and capital structure
Balance sheet and capital structure 2009 2010 2011 2012 9M 2013 (in IDR billions) (Audited) (Audited) (Audited) (Audited) (Unaudited) Consolidated Balance Sheet Current assets 213 340 965 917 1,667 Non-current Assets 1,137 1,458 1,880 2,965 4,446 Total assets 1,349 1,799 2,845 3,882 6,113 Current li
Slide 31: 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 32: Thank you
stp) Thank you
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