PT Sarana Menara Nusantara Tbk · IDX:TOWR

PT Sarana Menara Nusantara Tbk — Q2 2019 Earnings Presentation

20 slides from PT Sarana Menara Nusantara Tbk's earnings presentation, Sep 17, 2019

1. Slide 1: Indonesia's Premier Telecommunication Infrastructure Company – 2Q 2019 Results

   Indonesia’s Premier Telecommunication Infrastructure Company 2Q 2019 Results Presentation (Unaudited) PT Sarana Menara Nusantara, Tbk IDX ticker: TOWR.JK / TOWR IJ www.ptsmn.co.id

2. Slide 2: Agenda

   Agenda Strategy & Achievements Market Overview Summary Financial Results Appendix © 2019 PT Sarana Menara Nusantara, Tbk 2

3. Slide 3: Strategy & Achievements

   Divider slide Strategy & Achievements © 2019 PT Sarana Menara Nusantara, Tbk 3

4. Slide 4: Executing "Build, Buy, Return" Strategy

   Executing “Build, Buy, Return” Strategy Strategy and Achievements Protelindo’s Baa3 issuer rating reflects its position as Indonesia’s largest independent tower Maintain position as the leading telecom company. Its resilient and contractually based infrastructure company in Indonesia business model

5. Slide 5: Market Overview

   Divider slide Market Overview © 2019 PT Sarana Menara Nusantara, Tbk 5

6. Slide 6: Indonesia Digital Economy – Key Indicators

   Indonesia Digital Economy – Key Indicators Solid Potential in a Growing Economy Over 60% of Indonesians are under 40 years old with a median age of 29 years old Indonesia enjoys a demographic bonus as the digitally savvy Gen Z enter their productive years Indonesia’s economy continues to grow with a

7. Slide 7: Indonesian Tower Industry – Defining Features

   Indonesian Tower Industry – Defining Features One of The Most Attractive Tower Industries Globally High EBITDA High barriers to Significant growth Strong operating Long term revenues margins and free entry, including and business leverage cash flow conversion economies of scale opportunity Western I

8. Slide 8: SMN Group – Key Growth Drivers

   Sarana Menara Nusantara (SMN) Group – Key Growth Drivers Surging Data Demand is Generating New Business – New Opportunity 1. Telecom Industry Coverage Growth 2. Fiber Optics to Improve Capacity 3. Satellite Link and VSAT • Major operators are continuing to expand • Fiber improves network capacity in

9. Slide 9: Indonesian Telecom Infrastructure Industry – Overview

   Indonesian Telecom Infrastructure Industry – Overview Potential for Weorganic Are Thegrowth in line Largest Ownerwithofthe increasing Telecom demand Towers for Telco services in Indonesia Total number of towers owned by ITCs in Indonesia: ~50,000 Total number of towers in Indonesia : ~92,000 18,1521

10. Slide 10: Value of Total Long Term Contracts (in IDR bn)

    Value of Total Long Term Contracts (in IDR bn) in IDR Bn 45,000 42,240 42,626 40,000 35,000 30,000 27,485 26,055 26,057 25,000 24,437 20,000 15,000 10,000 5,000 0 '15 '16 '17 '18 Q1 19* Q2 19* Year • Revenue based on existing lease contracts and committed new lease contracts and renewals, net of Int

11. Slide 11: Protelindo Has Demonstrated a Strong Track Record of Growth

    And History of Strong Growth Protelindo Has Demonstrated a Strong Track Record of Growth CAGR (2014 – 2Q 19)* Adj. EV/EBITDA* No. of (#) in IDR bn Revenue EBITDA 2Q 19 80,000 7,000 US Towers 6,185 13.5% 12.3% 24.8x 5,928 70,000 5,868 6,000 5,341 5,127 10.2% 10.0% 20.9x 5,053 60,000 4,932 4,889 4,604

12. Slide 12: Indonesia's Tower Company Comparison

    Indonesia’s Tower Company Comparison Subtitle runs here 2Q 2019 1Q 2019 1Q 2019 LQA Revenue (IDR bn) 6,185.4 4,524.3 1,778.9 LQA EBITDA (IDR bn) 5,126.8 3,861.9 1,512.7 EBITDA Margin 82.9% 85.4% 85.0% Interest Cost Annualized (IDR bn) 940.4 1,950.1 837.5 Recurring FCF (IDR bn) 1 4,186.4 1,911.8 675.

13. Slide 13: Summary Financial Results

    Divider slide Summary Financial Results © 2019 PT Sarana Menara Nusantara, Tbk 13

14. Slide 14: Consolidated Performance Highlights 2Q 2018 vs 2Q 2019

    Company’s Consolidated Performance Highlights 2Q 2018 vs 2Q 2019 in IDR Bn 101.4 1,546.3 39.7 1,442.8 7.0% 1,281.7 (37.6) 66.8 2.8% 31.8 1,217.0 (33.9) 5.5% (2.6%) 2.6% (2.8%) Reported Growth of 7.2% Reported Growth of 5.3% Actual Revenue Internux KIN Net New Lease Actual Revenue Actual EBITDA Inter

15. Slide 15: Tower & Tenancy Growth

    Tower & Tenancy Growth EBITDA (in IDR Bio) 2,299 29,153 27,918 (1,064) 8.2% 1,362 18,152 (3.8%) 16,790 8.1% Reported Increase of 8.1% Reported Increase of 4.4% Actual Towers Net Additional Actual Towers Actual Tenants Internux Net Additional Actual Tenants 2Q 2018 Towers 2Q 2019 2Q 2018 Tenants 2Q 2

16. Slide 16: SMN Consolidated Statement of Profit or Loss

    SMN Consolidated Statement of Profit or Loss (IDR Bn) FY2016 FY2017 FY2018 1Q 2019 2Q 2019 Balance Chat Revenues Sheet Comparison 5,053.1 5,337.9 5,867.9 1,481.9 1,546.4 Cost of revenues (209.5) (277.4) (427.5) (113.0) (105.9) Depreciation and amortization (1,185.0) (894.9) (1,114.4) (328.5) (348.3)

17. Slide 17: SMN Consolidated Statement of Financial Position

    SMN Consolidated Statement of Financial Position As at 30 Jun 2019 (IDR Bn) 2016A 2017A 2018A 1Q 2019 2Q 2019 ASSETS Current assets Cash and cash equivalents 2,905.3 2,348.3 963.4 451.2 1,869.5 Trade receivables 351.7 624.0 821.0 1,990.9 1,988.4 Other receivables 1.3 22.4 196.5 168.2 8.1 Inventories

18. Slide 18: Appendix

    Appendix © 2019 PT Sarana Menara Nusantara, Tbk 18

19. Slide 19: Long Term Debt Profile

    Long Term Debt Profile Debt Maturity Subtitle runs here (stated in IDR Bn) 0 750 1,500 536 2,023 745 1,508 853 0 1,880 2,500 2,000 - 523 1,500 - - 1,000 1,880 - 103 - 1,500 1,500 - 1,508 - 500 -- 36 750 745 750 500 - - - - - H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2020 2021 2022 2023 2024 IDR Loan JPY Loan ID

20. Slide 20: 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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