PT Sarana Menara Nusantara Tbk · IDX:TOWR
PT Sarana Menara Nusantara Tbk — Q1 2020 Earnings Presentation
22 slides from PT Sarana Menara Nusantara Tbk's earnings presentation, 2020
Slide 1: Indonesia's Premier Telecommunication Infrastructure Company: 1Q 2020 Results Presentation
Indonesia’s Premier Telecommunication Infrastructure Company 1Q 2020 Results Presentation PT Sarana Menara Nusantara Tbk IDX ticker: TOWR.JK / TOWR IJ www.ptsmn.co.id
Slide 2: SMN Investment Highlights
SMN Investment Highlights Leading telco infrastructure company in Indonesia Largest independent tower Solid business model with company with 20,914 towers predictable cash flow and providing critical foundation for diversification to fiber optic coverage & capacity Sustained strong performance 22% t
Slide 3: The Industry
The Industry @2020 PT SARANA MENARA NUSANTARA TBK
Slide 4: Tower Business – Long-Term Predictable Revenue with Potential Upside
Tower Business – Long-Term Predictable Revenue with Potential Upside Long-term contracts* (10 years for TOWR), non- PREDICTABLE REVENUE cancellable and renewable PREDICTABLE REVENUE DEPENDENT TENANTS Contract renewal probable due to high relocation cost and network impact UPSIDE FROM ADDITIONAL REVE
Slide 5: Typical Tower Company Growth Model
Typical Tower Company Growth Model New Built-to-Suit Tower Colocation Boosts ROI Additional towers and contract renewals grow revenue Colocation boosts unlevered ROI and accelerates payback period Contract renewals *Assuming 10 years ground lease Assuming 100 existing towers with 10 year lease perio
Slide 6: Indonesia Tower Industry – A Growing Market
Indonesia Tower Industry – A Growing Market Low network penetration, significant High EBITDA margin, low capex, no colocation discount, no headroom in 4G expansion and low obligation to provide power in contract 4G download speed Western Indonesia USA India China Europe Non Non Predominant Tower bus
Slide 7: SMN 1Q 2020 Performance
Divider slide SMN 1Q 2020 Performance 6
Slide 8: Company Strategy: Build – Buy – Return
Company Strategy: Build – Buy – Return We intend to maintain position as a leading telecom infrastructure company and to deliver optimal value to our stakeholders • Invest in Build-to-Suit towers and - Number of towers grew to 20,914 as of 1Q20 BUILD colocation from 19,319 in 2019 • Expand fiber opt
Slide 9: Most Diverse Portfolio Among Independent Tower Companies
Most Diverse Portfolio Among Independent Tower Companies TOWER TOWER FIBERIZATION CONNECTIVITY • Total 20,914 towers with • Tower fiberization increases • Explore opportunities to 36,778 tenants nation wide. the value and utility of our provide connections via VSAT Tendency to telco network to Telco
Slide 10: Towers: Track Record of Strong Performance, Consistent Growth
Towers: Track Record of Strong Performance, Consistent Growth… #Towers or Tenants In Rp Bn Hutch towers Hutch towers iForte acquisition 2,500 XL towers KIN Acquisition Indosat 1,399 XL towers 40,000 acquired (421 towers) (1,369 towers) Acquisition acquired 7,000 acquired acquired (1,000 towers) 35,0
Slide 11: … with Excellent Future Revenue Visibility …
… with Excellent Future Revenue Visibility … Long term contracts underwrite stable revenue. ~Rp54.4 trillion of committed future revenue through 2032, not including value of potential future contract renewals in Rp Bn 55,000 54,414 51,007 50,000 45,062 45,000 42,626 42,240 40,000 35,000 30,000 26,05
Slide 12: … and Growing Non-Tower Revenue
… and Growing Non-Tower Revenue In Rp bn 2,000 1,800 15.1% 1,600 18.4% 13.6% 11.5% 1,400 9.5% 1,200 1,000 800 84.9% 86.4% 81.6% 90.5% 88.5% 600 400 200 - 1Q19 2Q19 3Q19 4Q19 1Q20 Tower Non Tower 11
Slide 13: Strong Investment Grade Balance Sheet
Strong Investment Grade Balance Sheet Leverage comfortably within investment grade range despite acquisitions and dividend 3.0 Indicative Term for Investment Grade 2.5 Net Debt to LQA 2.0 EBITDA (x) 1.5 2.4 2.5 2.1 2.3 1.0 2.1 1.8 2.0 1.6 1.5 0.5 0.0 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 Acqu
Slide 14: Summary of Financial Results
Divider slide Summary of Financial Results 13
Slide 15: Consolidated Statement of Profit and Loss
Sarana Menara Nusantara (SMN) Group Consolidated Statement of Profit and Loss (In RP Bn) 2016 2017 2018 2019 1Q19 1Q20 Growth Revenues 5,053.1 5,337.9 5,867.9 6,454.3 1,481.9 1,819.9 22.8% Cost of revenues (209.5) (277.4) (427.5) (458.3) (113.0) (100.3) -11.2% Depreciation and amortization (1,185.0)
Slide 16: Consolidated Statement of Financial Position
Sarana Menara Nusantara (SMN) Group Consolidated Statement of Financial Position (In RP bn) 2016 2017 2018 2019 1Q 20 ASSETS Current assets Cash and cash equivalents 2,905.3 2,348.3 963.4 593.8 894.3 Restricted cash - - - 6.6 3.6 Trade receivables 351.7 624.0 821.0 1,347.6 1,502.0 Other receivables
Slide 17: Revenue & EBITDA 1Q20 vs 1Q19
Revenue & EBITDA 1Q20 vs 1Q19 in RP Bn in RP Bn Revenue Growth 22.8% EBITDA Growth 27.7% 268.9 1,819.9 69.1 45.0 1,560.6 1,481.9 231.0 4.7% 18.1% 3.7% 62.2 1,222.4 5.1% 18.9% Actual Revenue Indosat Net New Lease Actual Revenue Actual EBITDA Indosat New Lease Cost Actual EBITDA 1Q19 Towers Revenue 1Q
Slide 18: Tower & Tenancy Growth 1Q20 vs 1Q19
Tower & Tenancy Growth 1Q20 vs 1Q19 Towers Growth 17.1% Tenancy Growth 30.6% * 4,555 36,778 2,201 1,869 16.2% 28,153 7.8% 6.6% 659 20,914 1,399 1,000 3.7% 17,856 7.8% 5.6% Actual Towers Indosat XL Net Organic Actual Towers Actual Tenants Indosat Net Organic Actual Tenants XL 1Q19 Towers Towers Tower
Slide 19: Appendix
Appendix @2020 PT SARANA MENARA NUSANTARA TBK
Slide 20: Foreign Exchange Exposure as of April 2020
Foreign Exchange Exposure as of 30 April 2020 ASSET CONTRACTED REVENUE LIABILITIES Cash USD 80.5mn 2020 – USD 7mn Bank Loan Investments USD 15.5mn 2021 – USD 54mn JPY 5.7bn (~USD 53mn) 2022 – USD 31mn 2023 – USD 22mn Bond 2024 – USD 17mn USD 138mn Total USD 96mn Total – USD 131mn Total - ~USD 191mn
Slide 21: Long Term Debt: 81.0% Floating, 19.0% Fixed, Avg Interest 6.0%
Long Term Debt*: 81.0% Floating, 19.0% Fixed, Avg Interest 6.0% in Rp Bn Maturity Profile 0 751 1,500 536 1,863 650 908 978 2,000 4,369 500 0 5,000 4,500 4,000 3,500 USD138mn 3,000 2,500 - 2,000 - - 1,500 - JPY5,7bn 103 2,300 1,000 - - 2,000 - - 1,500 36- - 500 - 1,000 908 875 - 751 650 500 500 - -
Slide 22: 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
PT Sarana Menara Nusantara — Q1 2020 Earnings Presentation on 6ix