Pt Solusi Tunas Pratama Tbk · IDX:SUPR
Pt Solusi Tunas Pratama Tbk — Investor Presentation (May 2016)
37 slides from Pt Solusi Tunas Pratama Tbk's investor presentation, May 2016
Slide 1: Investor Presentation PT Solusi Tunas Pratama Tbk
Investor Presentation PT Solusi Tunas Pratama Tbk May 2016
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: Indonesia's premier wireless data network infrastructure provider
We are Indonesia’s premier wireless data network infrastructure provider STP at a glance Assets Profitability Customers Top-tier and differentiated ~90% of revenue from asset portfolio: the top-4 telcos1 6,279 macro towers and 464 microcell poles with Industry-leading 11,377 tenants EBITDA margin
Slide 4: Key financial and operational highlights for 1Q16
Our key financial and operational highlights for 1Q16 1 6.2% year-on-year increase in quarterly revenue to IDR 466 billion Attractive EBITDA margin maintained at 86.0% for the quarter, with quarterly 2 EBITDA of IDR 401 billion 3 Improvement in tenancy ratio to 1.69x from 1.59x as of March 31, 2015
Slide 5: Indonesia's telecom sector is transitioning from 3G to 4G
Indonesia’s telecom sector is transitioning from 3G to 4G… Based on experience from other countries, 4G rollout will require Indonesia’s 4G network build out is just beginning substantially more base stations than 3G Industry1 BTS (‘000) 2G 3G 4G 3G BTS 4G BTS 222 206 213 194 8 11 ~3x 184 3 178 1 1
Slide 6: 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 traffic is expected to Mobile is expected to account for 42% of total Smartphone penetration is expected increase 11- fold from 2015 to 2020 fixed and mobile data traffic i
Slide 7: Microcell poles and fiber required for network densification
Microcell poles and fiber are required to cater to network densification needs Increase in data usage narrowing Initial 3G rollout transmission radius of existing towers Densification of network “MCP” = Microcell pole and supporting fiber backhaul MCP MCP MCP MCP MCP MCP MCP MCP MCP MCP MCP MCP MCP
Slide 8: Business model offerings
We are at the crossroads of a rapidly evolving Indonesian telecommunications industry “Space-based” “Capacity-based and services” Our product and service offerings Data Macro Microcell poles Microcell poles Fiber optic BTS hotel network DAS Shelter sites backhaul services towers (hybrid) (hybrid)
Slide 9: Most LTE ready tower operator with diverse asset portfolio
We are the most LTE ready tower operator with a consistently growing and diverse asset portfolio Macro towers Fiber-related assets 1 1 1 6.243 6.279 2.541 2.563 6.123 2.398 2.073 2.579 893 1.821 1.309 431 464 219 301 125 2011 2012 2013 2014 2015 1Q16 2012 2013 2014 2015 1Q16 Microcell poles Fiber (k
Slide 10: Unique asset base concentrated in densely populated areas
Our unique asset base and infrastructure concentration in densely populated areas provide us with a competitive edge Microcell poles Fiber (km) DAS Tenants First listed TowerCo in Indonesia to: Obtain license to lease out space on microcell poles (20- ~500 2.563 82 464 year contract) 64 Posses
Slide 11: Entrenched relationships with the big-4 telecom operators
We have entrenched our relationships with the big-4 telecom operators Breakdown of 1Q16 revenue contribution by operator We continue to grow our Telkom tenancies quickly Others 10% 38% Indosat 52% 49% 54% 6% 68% 88% IDR466Bn XL Telkom 1Q16 42% Group 20% revenue 62% 48% 51% 46% 32% 12% Hutchison 22%
Slide 12: Consistent growth with industry-leading profitability metrics
We have delivered consistent growth with industry-leading profitability metrics Strong growth trajectory with industry-leading profitability metrics Revenue (IDR Bn) EBITDA (IDR Bn) 1.864 82,5% 82,9% 85,9% 86,0% 1.786 1.534 1.602 1.072 840 888 693 2013 2014 2015 Ann.1Q16 2013 2014 2015 Ann.1Q16 EBIT
Slide 13: Operating leverage will drive ROIC higher over time
Significant operating leverage will drive ROIC higher over time FY15A ROIC1 of microcell poles + fiber has ample headroom for …Driven by attractive EBITDA per tenant as we increase our expansion… rollout of microcell poles with fiber network already in place (FY15A ROIC) Incremental ROIC Annual EBIT
Slide 14: Led our peers across key operating and financial metrics in 2015
We led our peers across several key operating and financial metrics in 2015 Operating and financial metrics Organic gross tower adds +242 +2571 +675 % growth 3.6% 2.2% 6.2% Organic gross tenancy adds +755 +5881 +1,488 % growth 7.2% 2.9% 8.2% 2015 tenancy ratio 1.69x 1.72x 1.65x FY15 EBITDA IDR1,534B
Slide 15: Commitment to deleveraging with no near term debt maturities
Commitment to deleveraging with no near term debt maturities 1Q16 Net Debt Build-Up We have disciplined risk management policy IDR Bn Hedging policy in place to safeguard against FX and interest 4.9x (0.1x) (0.3x) 4.5x rate risk 7.809 100% of all outstanding debt hedged against the interest rate
Slide 16: Full year 2016 outlook
Full year 2016 outlook ~8% revenue growth with stable EBITDA margin 40-50% of growth from macro towers 50-60% of growth from fiber related assets 15
Slide 17: Appendix A Industry Materials
Appendix A Industry Materials 16
Slide 18: Short term headwinds for tower operators
Short term headwinds for tower operators Tower and tenant growth witnessing a temporary slowdown as the telecom sector prepares for the transition… Tower Bersama Protelindo STP 5.322 4.051 3.771 3.473 2.985 2.772 2.187 1.959 2.097 1.829 1.811 1.816 1.306 580 540 512 758 134 309 163 101 231 154 187 4
Slide 19: Case study: 4G rollout sustains growth for US tower operators
Case study: 4G rollout continues to sustain growth for US tower operators The major U.S. wireless carriers are in The technology transition from 3G to As we entered 2012, in the United various stages of deploying 4G long- 4G wireless services in the U.S. is in States both Verizon and AT&T were term
Slide 20: Appendix B Growth Strategy
Appendix B Growth Strategy 19
Slide 21: Executing our pillars of growth
We execute our strategy by executing our 4 pillars of growth CONTINUED PRUDENT & SELECTIVE DISCIPLINED E X PA N S I O N O F APPROACH TO COLOCATION BUILD-TO-SUIT DATA ON EXISTING ROLLOUT M&A-DRIVEN N E T W O R K / LT E PORTFOLIO GROWTH INFRASTRUCTURE SERVICES 20
Slide 22: 1G – Significant tenancy ratio expansion potential
1G – Significant tenancy ratio expansion potential Global benchmarking shows clear upside for Evolution of our tenancies over time STP’s long-term tenancy ratio Beginning tenancy ratio for all acquired / B2S sites3 1.15x Peer Tenancy ratio at Sep 20144 1.71x groups Organic colocation by STP +0.56x T
Slide 23: 2G – Organic growth via disciplined build-to-suit initiatives
2G – Organic growth via disciplined build-to-suit initiatives Build-to-suits per year 418 No speculative build-to-suits Assessment of colocation potential before tower builds 233 242 Towers are FCF-accretive on Day 1 116 Contracts with tenants legally binding 2012 2013 2014 2015 Majority o
Slide 24: 3G – Inorganic growth from M&A and operational synergies
3G – Inorganic growth from M&A and operational synergies Track record in acquisition of sites with high colocation potential Strong track record of M&As with almost 6,000 towers acquired over the last 9 years, securing our Tenancy ratio position as one of the top 3 tower operators in Year Telco # to
Slide 25: XL Towers Case Study
XL Towers Case Study Deal Structure1 We have steadily improved tenancy ratios since the acquisition Towers acquired 3,500 1,72 Tenancy ratio (x) 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
Slide 26: 4G – Diversifying data network / LTE infra revenue streams
4G – Diversifying our data network / LTE infra revenue streams STP’s data network / LTE infra related products and services Capabilities WiFi access we have IBS / Indoor Mobile point & MCP ISP services today DAS backhaul hotspot leasing Capabilities Fiber to the being home services developed (Jun 20
Slide 27: Growth prospects protected by high barriers to entry
Our growth prospects are well-protected by high barriers to entry… Very challenging for new entrants to replicate Regulations Operations Capital Ownership restrictions for private Long-term, locked-in contracts of Significant upfront capex tower companies ~10 year tenor Mission critical natu
Slide 28: Resilient business model with high revenue visibility
…and a resilient business model with high revenue visibility Typical contract length Long contract tenors with weighted average remaining life of 6.11 years as of March 2016 Weighted Average Remaining Life = 6.11 years Mission critical nature of towers lead to contract tenors usually longer than
Slide 29: Capex profile
Capex profile Capex profile Non-discretionary capex comprises of: Property and equipment Investment properties Ground lease (IDR Bn) Operation and maintenance (minimal) 6,295 247 Land rental renewal (y-o-y basis based on renewal schedule) License renewal (same as above) Discretionary capex
Slide 30: Stable lease rates over the last few years
Stable lease rates over the last few years Lease rates have been relatively stable over the last few years Breakdown of contracted revenue by operator as of 1Q16 despite the increased competition IDR MM / month Others 9% 16 Indosat 15 1 7% 14 14 14 IDR466Bn XL Telkom 1Q16A 48% Group revenue 19% Hutc
Slide 31: Appendix C Summary Financials
Appendix C Summary Financials 30
Slide 32: Income statement
Income statement Income statement (in IDR millions, unless otherwise specified) 2013 2014 2015 1Q2015 1Q2016 (in IDR millions) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Revenue 840,097 1,071,929 1,785,853 438,545 465,900 Cost of Revenue Depreciation and Amortization (103,818) (117,791) (
Slide 33: Statements of financial position (Assets)
Statements of financial position (Assets) Statements of financial position (Assets, in IDR millions, unless otherwise specified) 2013 2014 2015 1Q2016 (in IDR millions) (Audited) (Audited) (Audited) (Unaudited) Current Assets Cash and Cash Equivalents 525,226 1,318,888 229,325 497,797 Trade Receivab
Slide 34: Statements of financial position (Liabilities)
Statements of financial position (Liabilities) Statements of financial position (Liabilities, in IDR millions, unless otherwise specified) 2013 2014 2015 1Q2016 (in IDR millions) (Audited) (Audited) (Audited) (Unaudited) Current Liabilities Trade Payables - Related Party 18,007 3,562 293 437 - Third
Slide 35: Statements of financial position (Equity)
Statements of financial position (Equity) Statements of financial position (Equity, in IDR millions, unless otherwise specified) 2013 2014 2015 1Q2016 (in IDR millions) (Audited) (Audited) (Audited) (Unaudited) Equity Issued and Paid-Up Capital 79,429 79,436 113,758 113,758 Additional Paid-in Capita
Slide 36: Appendix D Fiber Optics Network
Appendix D Fiber Optics Network 35
Slide 37: Fiber Optics Network (as of March 31, 2016)
Fiber Optics Network (as of March 31, 2016) (Km) Medan 102 Batam – Singapura 84 Jabode- tabek Jatim-Kalsel 1.496 Bandung 483 Banten – Lampung 259 71 Surabaya 68 Land fiber asset Submarine fiber asset 36
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