PT Sarana Menara Nusantara Tbk · IDX:TOWR
PT Sarana Menara Nusantara Tbk — Q2 2023 Earnings Presentation
26 slides from PT Sarana Menara Nusantara Tbk's earnings presentation, Sep 28, 2023
Slide 1: Indonesia's Premier Digital Infrastructure Company: 2Q 2023 Results Presentation
Indonesia’s Premier Digital Infrastructure Company 2Q 2023 Results Presentation PT S arana Menara Nusantara Tbk TOWR.JK / TOWRIJ www.ptsmn.co.id investor.relations@ptsmn.co.id
Slide 2: SMN Investment Highlights
SMN Investment Highlights Premier digital infrastructure company in Indonesia One of the largest digital infrastructure Continuous strong performance companies in Indonesia with 29,792 (a) 5-yr Revenue 15.1% towers and 189,888 km fiber* (a) 5-yr EBITDA CAGR 15.3% Solid build-to-suit model for Sustai
Slide 3: TOWR strategy supports ESG & sustainability goals
TOWR strategy supports ESG & sustainability goals 1. Capital Management 2. Low-risk business 3. ESG-conscious company - Access to low-cost funding - Digital infrastructure business with - Very small carbon footprint - Liquidity amounts to $897 mn 1 as of high demand difficult to replace. - 95% of in
Slide 4: The Industry
The Industry @2023 PT Sarana Menara Nusantara Tbk 3
Slide 5: Tower and Fiber Business
Tower and Fiber Business Long-term Predictable Revenue with Upside Long-term contracts* (10 years for tower and can be longer PREDICTABLE REVENUE for fiber), non-cancellable and renewable DEPENDENT TENANTS Contract renewal likely due to high relocation cost and significant network impact UPSIDE FROM
Slide 6: 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 7: Indonesia Tower Industry – A Growing Market
Indonesia Tower Industry – A Growing Market Low network penetration with High EBITDA margin, low capex, no colocation discount, no significant headroom in 4G expansion obligation to provide power in contract and low 4G internet speed Western Indonesia USA India China Europe Non Non Predominant Tower
Slide 8: SMN 2Q2023 Performance
SMN 2Q2023 Performance @2023 PT Sarana Menara Nusantara Tbk 7
Slide 9: Company Strategy: Build – Buy – Return
Company Strategy: Build – Buy – Return We will maintain our position as a leading telecom infrastructure company and continue to deliver optimal value to our stakeholders. • Invest in Built-to-suit towers and colocation. BUILD • Expand fiber optic network, in particular tower fiberization, to ➢ Adde
Slide 10: Diverse Product Portfolio
Diverse Product Portfolio Currently we are the only tower provider that provides end to end services to teleco operators TOWER Fiber to The Tower (FTTT) CONNECTIVITY • Total 29,792 towers and • FTTT increases the value and • Actively seeking opportunities to 53,771 tenants as of 30 June utility of o
Slide 11: Diversifying Business Base
Diversifying Business Base Capex Spend 2016-June 23 20,000 60,000 18,000 49,436 18,259 46,439 50,000 16,000 39,850 14,000 40,000 12,000 20,568 10,000 30,000 8,000 15,670 10,085 20,000 6,000 6,072 4,000 3,144 4,715 4,586 10,000 4,221 1,816 2,000 3,713 1,023 1,182 999 677 86 301 3,445 - 1,114 157 - 20
Slide 12: Track Record of Consistent Growth
Track Record of Consistent Growth … XL towers acquisition STP and XL acq Hutch towers Hutch acq Hutch towers iForte acq (2,500 towers) KIN Acq Indosat Acq Bumen acq GIK acq (125 (1,646 acq (5,085 towers) acq (421 towers) (1,369 towers) (1,000 towers) towers) (6,943 towers) towers) 60,000 182,000 162
Slide 13: and Strong Financial Performance
and Strong Financial Performance In Rp Bn 12,000 10,000 8,532 8,000 8,606 7,101 6,000 6,332 5,583 4,000 4,885 4,998 5,339 3,114 2,430 2,000 1,534 1,114 872 340 529 168 - 2016 2017 2018 2019 2020 2021 2022 2Q23 Annl Revenue Tower Revenue Non Tower EBITDA AFFO* 2Q23 2016 2017 2018 2019 2020 2021 2022
Slide 14: … with Excellent Future Revenue Visibility
… with Excellent Future Revenue Visibility Long term contracts and commitments underwrite more than Rp69.3 trillion of committed future revenue through 2042, not including value of potential future contract renewals. 68,069 69,258 68,563 63,204 2,996 4,204 65,073 52,238 51,007 8,098 6,582 7,157 65,0
Slide 15: Strong Investment Grade Balance Sheet
Strong Investment Grade Balance Sheet Leverage comfortably within investment grade range despite acquisitions and dividend. 5.0 4.4 4.4 4.4 4.3 4.5 4.3 4.2 4.2 4.0 3.5 Net Debt to LQA 3.0 EBITDA (x) 2.5 2.4 2.4 2.5 2.2 2.1 2.1 2.0 1.8 1.6 1.5 1.5 1.0 0.5 0.0 2015 2016 2017 2018 2019 2020 1Q21 2Q21 3
Slide 16: SMN 2Q2023 Summary of Financial Results
SMN 2Q2023 Summary of Financial Results @2023 PT Sarana Menara Nusantara Tbk 15
Slide 17: Sarana Menara Nusantara (SMN) Group
Sarana Menara Nusantara (SMN) Group Abridged consolidated statement of profit and loss. (In RP Bn) 2017 2018 2019 2020 2021 2022 2Q22 2Q23 yoy Revenues 5,337.9 5,867.9 6,454.3 7,445.4 8,635.3 11,035.7 2,697.0 2,911.6 8.0% Cost of revenues (277.4) (427.5) (458.3) (415.2) (480.4) (607.8) (153.1) (169.
Slide 18: Sarana Menara Nusantara (SMN) Group
Sarana Menara Nusantara (SMN) Group Abridged consolidated statement of financial position. (In RP bn) 2016 2017 2018 2019 2020 2021 2022 2Q23 ASSETS Current assets Cash and cash equivalents 2,905.3 2,348.3 963.4 593.8 1,442.6 4,748.4 308.6 485.8 Restricted cash - - - 6.6 4.9 2.0 0.0 0.1 Trade receiv
Slide 19: Sarana Menara Nusantara (SMN) Group
Sarana Menara Nusantara (SMN) Group Abridged consolidated statement of cashflows (6 months ended June 2023). in Rp Bn 6,233 * Numbers included VAT ** Including ground lease *** ATMI, MCP and Varnion Acquisition @2023 PT Sarana Menara Nusantara Tbk 18
Slide 20: Profit and Loss Movement 2Q2023
Profit and Loss Movement 2Q2023 in Rp Bn Revenue EBITDA Net Income 2,475.2 2,911.6 2,438.9 2,864.7 46.9 (1.6%) 36.4 (1.5%) 2,320.2 2,697.0 837.6 752.4 806.7 54.3 (7.2%) +214.6 (8.0%) +155.0 (6.7%) -30.9 (-3.7%) 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 @2023 PT Sarana Menara Nusantara Tbk 19
Slide 21: Revenue Analysis (2Q22 vs 2Q23)
Revenue Analysis (2Q22 vs 2Q23) in Rp Bn Towers* FTTT 209.0 426.4 2,141.3 ( 8.3 ) 2,133.0 (0.4%) 217.4 96.1% 2Q22 Net Movement 2Q23 2Q22 Net Movement 2Q23 Connectivity Total Revenue 352.2 214.6 2,911.6 338.3 13.9 4.1% 2,697.0 8.0% 2Q22 Net Movement 2Q23 * Including managed services 2Q22 Net Movement
Slide 22: Summary Operational Data (Jun vs Jun 23)
Summary Operational Data (Jun 22 vs Jun 23) Towers Tenancy 54,716 29,792 53,771 29,263 #of Towers #of Tenancy -945 (-1.7%) +529 (1.8%) 2Q22 2Q23 2Q22 2Q23 FTTT Connectivity* 50,144 172,593 95,400 13,333 #Activations Kms +77,193 (80.9%) +36,811(276.1%) 2Q22 2Q23 2Q22 2Q23 * Including home connect @20
Slide 23: Appendix
Appendix @2023 PT Sarana Menara Nusantara Tbk 22
Slide 24: Foreign Exchange Exposure as of Jun 2023
Foreign Exchange Exposure as of 30 Jun 2023 Low risk from FX exposure as balance sheet naturally hedged. ASSET CONTRACTED REVENUE LIABILITIES Cash USD 166.4mn 2024 - USD 18mn Bond USD 138mn Total USD 166.4mn Total - USD 18mn Total ~USD 138mn Risk Mitigation: • USD financial assets and USD contracted
Slide 25: Long Term Debt: 46.0% floating, 54.0% fixed, avg. interest 6.3%
Long Term Debt*: 46.0% floating, 54.0% fixed, avg. interest 6.3% in Rp Billion Maturity Profile * USD loan hedged into IDR 2,243 3,684 4,592 4,425 1,784 1,066 7,869 3,125 2,300 1,901 2,335 1,503 9,000 744 7,500 6,000 USD 138mn 4,500 3,559 7,125 3,000 1,118 USD 34.8mn* USD 40.0mn* 4,425 1,593 USD 100
Slide 26: 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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