Pt Solusi Tunas Pratama Tbk · IDX:SUPR

Pt Solusi Tunas Pratama Tbk — Investor Presentation (May 2016)

36 slides from Pt Solusi Tunas Pratama Tbk's investor presentation, May 2016

  1. Slide 1: Investor Presentation

    Investor Presentation PT Solusi Tunas Pratama Tbk Presentation Title May 2016

  2. 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

  3. Slide 3: We are STP

    We are STP Top-tier tower portfolio Robust financial growth IDR1,786bn 2015A revenue 6,674 towers3,4 2012-14A PF1 revenue CAGR of 78% 11,276 tower tenancies3 (IDR1,675bn 2014A PF1 revenue) Differentiated asset base Industry leading profitability 2,541km of fibre network3 IDR1,534bn FY15A EBITDA Pion

  4. Slide 4: Session 1 Investment highlights

    Session 1 Investment highlights 3

  5. Slide 5: A-C-E strategy and growth

    A - C - E strategy and growth GROWTH E C A 4

  6. Slide 6: A-C-E strategy and growth – Assets

    A - C - E strategy and growth – Assets GROWTH E C A 5

  7. Slide 7: Unique integrated network infrastructure provider

    Unique integrated network infrastructure provider 2 Fibre 4 Indoor DAS 1 Macro towers 3 Microcell poles STP is able to provide an end-to-end integrated network infrastructure 6

  8. Slide 8: We have a highly concentrated urban macro tower footprint

    We have a highly concentrated urban macro tower footprint Geographic breakdown of towers Others 6% Sumatra Others Others 8% 23% 18% Kalimantan 71% 7% 57% Kalimantan 52% 10% Java of towers Sumatra of towers Java of towers 52% 28% in Java1 57% in Java1 in Java1 (33% in Jakarta) Sumatra 20% Java 71% 3

  9. Slide 9: We have the most substantial fibre base in Indonesia amongst all tower operators

    We have the most substantial fibre base in Indonesia amongst all tower operators (km) Medan 102  Efficient backhaul network, including submarine cables between islands  c.1,474km in Greater Jakarta region alone, where demand for data bandwidth is at peak Batam – Singapore 84  Unique fibre network

  10. Slide 10: We are the best prepared for LTE

    We are the best prepared for LTE 4G rollout will require substantially more Exploding data revenues base stations than 3G Indonesian GDP per capita by region (Data % total telco revenues) (IDR ‘000s) 3G BTS 4G BTS 33% +3x 31% 41,177 28% 94,000 24% 18% 14% +2x 11% 32,000 21,000 9,252 7,893 7,568 11,0

  11. Slide 11: Our asset portfolio continues to grow

    Our asset portfolio continues to grow Macro towers Microcell poles Fibre (km) 6,350 6,243 431 2,541 2,398 2,073 301 219 2,579 893 1,821 125 1,309 - - 2011A 2012A 2013A 2014A 2015A 2011A 2012A 2013A 2014A 2015A 2011A 2012A 2013A 2014A 2015A Our asset base has grown rapidly, consistently, and in great

  12. Slide 12: A-C-E strategy and growth – Customers

    A - C - E strategy and growth – Customers GROWTH E C A 11

  13. Slide 13: In ~3 years, we have refocused almost all of our business with the Big-4 operators

    In ~3 years, we have refocused almost all of our business with the Big- 4 operators Revenue contribution from the Big-4 operators have grown steadily, to reach 90% as of FY15A 2011A 2014A PF1, 2 LQA FY15A XL Telkom Others Others 3% Group 16% 11% 9% Indosat 3% Hutchison XL Hutchison XL 3% 41% 22% 41%

  14. Slide 14: Increasing exposure to the Big-4 GSM operators investing in 3G/LTE rollout

    Increasing exposure to the Big-4 GSM operators who are investing heavily into 3G / LTE rollout Key initiatives and drivers of growth Growing tenancy contribution 2011-2015A increase  Telkomsel focuses on strengthening its leading position through +11x consistent investment in network infrastructure

  15. Slide 15: Strong anchor revenue base with growing exposure to the rest of the Big-4

    Strong anchor revenue base with growing exposure to the rest of the Big-4 GSM operators Breakdown of FY15A revenue contribution by operator Others 10% Indosat 6% Others Hutchison 6% Others 11% 22% XL Telkom Group 42% 42% XL 44% Telkom Group 44% 38% Hutchison 38% 15% Telkom 20% Group Telkom Group Hut

  16. Slide 16: A-C-E strategy and growth – Execution

    A - C - E strategy and growth – Execution GROWTH E C A 15

  17. Slide 17: Proven execution capabilities

    Proven execution capabilities 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Traditional TowerCo Integrated Fibre + Microcell poles + DAS + Tower  STP  Started its  Signed  Signed  Expanded  Expanded established commercial MLAs with MLAs with into fibre into DAS operations Indosat, XL Axiat

  18. Slide 18: Stable top-line growth supported by healthy profitability

    Stable top-line growth supported by healthy profitability Revenues EBITDA (IDRbn) (IDRbn) EBITDA EBITDA margin (%) 83% 83% 83% 85% 86% 1,837 1,786 1,565 1,534 1,072 888 840 693 529 442 1, 2 1 2012A 2013A 2014A 2014A PF 2015A 2012A 2013A 2014A 2014A PF 2015A Source: Company filings Note: 1 Pro forma

  19. Slide 19: Session 2 Our growth story

    Session 2 Our growth story 18

  20. Slide 20: Growth pillars that drive our future – 4G

    4 growth pillars that drive our future – “4G” GROWTH Continued Prudent and Disciplined Expansion of colocation selective approach to data network / on existing build-to-suit M&A-driven LTE portfolio roll out growth infrastructure services 1G 2G 3G 4G 19

  21. Slide 21: 1G – Significant tenancy ratio expansion potential

    1G – Significant tenancy ratio expansion potential Global benchmarking shows clear upside for STP’s Evolution of our tenancies over time (Axis case study1) long-term tenancy ratio Towers Tenancy ratio Tenancies2 (excluding Bakrie) Peer 2.45x groups Beginning tenancy ratio for all 1.15x 2.37x acquire

  22. Slide 22: 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 244 233  Towers are FCF-accretive on Day 1 116  Contracts with tenants legally binding 2012A 2013A 2014A 2015A  Majori

  23. Slide 23: 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 Tenancy ratio towers acquired over the last 8 years, securing its Year Telco # towers at acquisition position as one of the top 3

  24. Slide 24: 4G – Diversifying our 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 Fibre to the to be home services developed Telecom

  25. Slide 25: Our growth prospects are well-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

  26. Slide 26: A 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 6.171 years as of December 2015 Weighted Average Remaining Life = 6.171 years  Mission critical nature of towers lead to contract tenors usually longer

  27. Slide 27: Session 3 Financial performance

    Session 3 Financial performance 26

  28. Slide 28: Strong growth trajectory with leading profitability metrics

    Strong growth trajectory with leading profitability metrics Revenue EBITDA EBIT (IDRbn) (IDRbn) (IDRbn) EBITDA EBIT EBITDA margin (%) EBIT margin (%) 83.5% 82.5% 82.9% 85.2% 85.9% 1,837 70.9% 76.0% 74.5% 1,786 66.8% 69.2% 1,565 1,534 1,397 1,331 1,072 888 840 760 693 582 529 442 354 1, 2 2012A 2013A

  29. Slide 29: Healthy balance sheet with no near term debt maturities

    Healthy balance sheet with no near term debt maturities Debt maturity profile (as % of total Cash and cash equivalent Gross debt1 outstanding) (IDRbn) (IDRbn) 8,167 7,691 49% 32% 2,787 1,411 7% 8% 907 525 4% 263 229 0% 2 2012A 2013A 2014A PF 2015A 2012A 2013A 2014A PF2 2015A 2015E 2016E 2017E 2018E

  30. Slide 30: Prudent capital structure management with diversified sources of capital

    Prudent capital structure management with diversified sources of capital  STP has consistently demonstrated discipline in capital management  Net debt / LQA EBITDA decreased from 4.0x post the first syndicated bank loan to 1.2x in Dec 2012  After taking on the second syndicated bank loan to re-le

  31. Slide 31: Appendix

    Appendix 30

  32. Slide 32: Overview of XL Towers acquisition

    Overview of XL Towers acquisition Metrics shown on September 2014 / 3Q14 LQA basis Deal structure Strategic rationale Towers acquired 3,500  Solidifies STP’s position as a “Big 3” player in the Indo tower landscape, doubling its portfolio to 6,625 towers and 10,423 tenants Tenants acquired 5,793 

  33. Slide 33: Income statement

    Income statement Income statement (in IDR million, unless otherwise specified) 1 2012A 2013A 2014A 2015A (Audited) (Audited) (Audited) (Audited) Revenue 529,408 840,096 1,071,929 1,785,853 Cost of Revenue Depreciation and Amortization (83,924) (103,818) (117,791) (186,766) Other Cost of Revenues (41

  34. Slide 34: Statements of financial position (Assets)

    Statements of financial position (Assets) Statements of financial position (Assets, in IDR million, unless otherwise specified) 2012A 2013A 2014A 2015A (Audited) (Audited) (Audited) (Audited) Current Assets Cash and Cash Equivalents 263,326 525,226 1,318,888 229,325 Trade Receivables – Third Parties

  35. Slide 35: Statements of financial position (Liabilities)

    Statements of financial position (Liabilities) Statements of financial position (Liabilities, in IDR million, unless otherwise specified) 1 1 2012A 2013A 2014A 2015A (Audited) (Audited) (Audited) (Audited) Current Liabilities Trade Payables - Related Party 8,663 18,007 3,562 293 - Third Parties - 17

  36. Slide 36: Statements of financial position (Equity)

    Statements of financial position (Equity) Statements of financial position (Equity, in IDR million, unless otherwise specified) 1 1 2012A 2013A 2014A 2015A (Audited) (Audited) (Audited) (Audited) Equity Issued and Paid-Up Capital 73,500 79,429 79,436 113,758 Additional Paid-in Capital – Net 951,120

PT Solusi Tunas Pratama — Investor Presentation (May 2016) on 6ix