PT Sarana Menara Nusantara Tbk · IDX:TOWR

PT Sarana Menara Nusantara Tbk — Q3 2019 Earnings Presentation

21 slides from PT Sarana Menara Nusantara Tbk's earnings presentation, October 2019

  1. Slide 1: Indonesia's Premier Telecommunication Infrastructure Company 3Q 2019 Results Presentation

    Indonesia’s Premier Telecommunication Infrastructure Company 3Q 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 Maintain position as the leading telecom as Indonesia’s largest independent tower 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 and a demographic bonus as the digitally savvy Gen Z enter their productive years Indonesia’s economy continues to grow. Strong economic performance

  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 Secured long term Strong operating margins and free entry, including and business revenues leverage cash flow conversion economies of scale opportunity W

  8. Slide 8: Sarana Menara Nusantara (SMN) Group – Key Growth Drivers

    Sarana Menara Nusantara (SMN) Group – Key Growth Drivers Surging Data Demand is Generating New Business – New Opportunity 1. Organic Tower Business 2. Fiber Optics to Improve Capacity 3. Satellite Link and VSAT • YTD Sep 2019 organic growth highest in • Fiber improves network capacity in dense • New

  9. Slide 9: Indonesian Telecom Infrastructure Industry – Overview

    Indonesian Telecom Infrastructure Industry – Overview Including Proforma Potential for Post-Indosat organic growth Transaction in line with Tower the increasing Count for Telco services demand Total number of towers owned by ITCs in Indonesia: ~43,000 Total number of towers in Indonesia : ~92,000 19

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

    Value of Total Long Term Contracts (in IDR bn) in IDR Bn 50,000 45,062 45,000 42,240 42,626 40,000 35,000 30,000 26,057 25,000 24,437 20,000 '17 '18 Q1 19* Q2 19* Q3 19* Year • Revenue based on existing lease contracts and committed new lease contracts driven principally by renewal of Hutch contract

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

    And History of Strong Growth Protelindo Has Demonstrated a Track Record of Strong Growth No. of (#) in IDR bn CAGR 2015 – 2Q19 A Adj. EV/EBITDA 80,000 7,000 Revenue EBITDA 2Q19 70,000 5,868 6,000 US Towers 11.9% 11.1% 25.7x 5,341 60,000 5,053 4,932 5,000 12.5% 12.5% 22.2x 4,470 4,604 4,408 50,000 4,

  12. Slide 12: Financial Highlights Q3 2019

    Financial Highlights Q3 2019 Subtitle runs here Revenue (IDR bn) 1,626.5 EBITDA (IDR bn) 1,368.5 EBITDA Margin 84.1% Interest Cost (IDR bn) 199.9 Recurring FCF (IDR bn) (1) 1,168.6 Recurring FCF Margin (1) 71.8% Net Debt / LQA EBITDA 2.0x Key Credit Metrics Interest Coverage Ratio 6.8x Average Inter

  13. Slide 13: Summary Financial Results

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

  14. Slide 14: Company's Consolidated Performance Highlights 3Q 2018 vs 3Q 2019

    Company’s Consolidated Performance Highlights 3Q 2018 vs 3Q 2019 in IDR Bn 144.5 1,626.5 9.4% 1,540.4 (58.4) 1,368.5 126.6 (3.8%) 1,294.5 (52.6) 9.8% (4.1%) Reported Growth of 5.6% Reported Growth of 5.7% Actual Revenue Internux Net New Lease Actual Revenue Internux Actual EBITDA Net New Lease Actua

  15. Slide 15: Tower & Tenancy Growth

    Tower & Tenancy Growth EBITDA (in IDR Bio) 3,181 30,430 28,113 (864) 11.3% 999 18,233 (3.1%) 17,234 5.8% Reported Increase of 5.8% Reported Increase of 8.2% Actual Towers Additional Actual Towers Actual Tenants Internux Net Additional Actual Tenants 3Q 2018 Towers 3Q 2019 3Q 2018 Tenants 3Q 2019 • N

  16. Slide 16: Segment Contribution – Revenue & EBITDA

    Segment Contribution – Revenue & EBITDA In IDR Bn Revenue EBITDA 1,800 1,800 84.5% 84.1% 1,600 1,600 13.6% 84.0% 11.5% 1,400 9.5% 1,400 1,200 1,200 83.5% 1,000 1,000 83.0% 800 800 82.9% 90.5% 88.5% 86.4% 600 600 82.5% 82.5% 400 400 82.0% 200 200 - - 81.5% Q1 19 Q2 19 Q3 19 Q1 19 Q2 19 Q3 19 Tower No

  17. Slide 17: SMN Consolidated Statement of Profit or Loss

    SMN Consolidated Statement of Profit or Loss Balance (IDR Bn) Chat Sheet Comparison FY2016 FY2017 FY2018 1Q 2019 2Q 2019 3Q 2019 Revenues 5,053.1 5,337.9 5,867.9 1,481.9 1,546.4 1,626.5 Cost of revenues (209.5) (277.4) (427.5) (113.0) (105.9) (112.8) Depreciation and amortization (1,185.0) (894.9) (

  18. Slide 18: SMN Consolidated Statement of Financial Position

    SMN Consolidated Statement of Financial Position As at 30 Sep 2019 (IDR Bn) 2016A 2017A 2018A 1Q 2019 2Q 2019 3Q 2019 ASSETS Current assets Cash and cash equivalents 2,905.3 2,348.3 963.4 451.2 1,869.5 2,241.1 Trade receivables 351.7 624.0 821.0 1,990.9 1,988.4 1,122.8 Other receivables 1.3 22.4 196

  19. Slide 19: Appendix

    Appendix © 2019 PT Sarana Menara Nusantara, Tbk 19

  20. Slide 20: Long Term Debt Profile

    Long Term Debt Profile Debt Maturity Subtitle runs(stated here in IDR Bn) 0 900 1,500 471 2,545 1,458 908 103 0 1,846 3,000 2,500 - 2,000 1,045 1,500 - - 1,000 - - 1,846 1,500 1,500 1,458 500 900 -- 36 908 435 - 103 - - - - - - H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2020 2021 2022 2023 2024 IDR Loan JPY Loan

  21. Slide 21: 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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