Pt Solusi Tunas Pratama Tbk · IDX:SUPR
Pt Solusi Tunas Pratama Tbk — Investor Presentation (June 2017)
37 slides from Pt Solusi Tunas Pratama Tbk's investor presentation, June 2017
Slide 1: Management Presentation
Management Presentation PT Solusi Tunas Pratama Tbk June 2017
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. These materials are highly confidential and are being given solely for your information and for your use. By accepting these materials you agree that you w
Slide 3: Section 1: Country and Industry Overview
Section 1 Country and Industry Overview 2
Slide 4: Indonesia has one of the most attractive tower markets globally
Indonesia has one of the most attractive tower markets globally… Indonesia Tower Market Global Tower Market Benchmarking High barriers to entry including local regulations Independent Independent Independent 2 Captive Business model Significant growth opportunity Lease rate per tenant 900 – 1,10
Slide 5: Underpinned by strong organic growth fundamentals
…underpinned by strong organic growth fundamentals Network Coverage Expansion Palapa Ring ● Telkomsel currently has c. 30,000 coverage sites ● A nationwide fibre optic backbone expected to improve internet access across towns and villages in ex-Java where standalone ● To achieve similar coverage, In
Slide 6: Indonesia's telecom sector is transitioning from 3G to 4G
Indonesia’s telecom sector is transitioning from 3G to 4G… Indonesia’s 4G network roll-out is just beginning… …with 55% of SIM card users expected to use 4G by 2021 Industry1 BTS (‘000) 2G 3G 4G Wireless SIM base (MM) 2G 3G 4G Penetration +8k 281 270 27 +11k 19 132% 129% 125% 121% 117% 213 113% 109%
Slide 7: As demand for mobile data continues to boom
…as demand for mobile data continues to boom We are only in the first inning of Indonesia's mobile data revolution… Mobile data usage per connection is Mobile connections are expected to Smartphone penetration is expected expected to increase 14.2x from 2015 to account for 92% of total broadband to
Slide 8: Indonesia's fixed broadband market is nascent
Indonesia’s fixed broadband market is nascent Indonesia has amongst the lowest fixed broadband penetration… …and a relatively low average fixed broadband speed (%) Mbps 104% 28.6 88% 86% 21.9 20.3 34% 8.9 7.2 9% Korea Singapore Hong Kong Malaysia Indonesia Korea Hong Kong Singapore Malaysia Indonesi
Slide 9: Section 2: Company Overview
Section 2 Company Overview 8
Slide 10: Indonesia's premier wireless data network infrastructure provider
Indonesia’s premier wireless data network infrastructure provider 6,346 macro towers and 555 microcell poles with 11,471 tenants ~89% of revenue from 2,783 km fiber the top-4 telcos1 optic network 1Q17 EBITDA 39 indoor DAS sites margin of 86.1% with 83 tenants Note: 1Revenues from Telkom Group inclu
Slide 11: Key investment highlights
Key investment highlights 1 Prime provider of tower and fiber telecom infrastructure in Indonesia 2 Strong execution track record of both organic and inorganic growth Entrenched customer relationships underpinning significant high 3 quality contracted revenue backlog 4 Data network / LTE infrastruct
Slide 12: Prime provider of tower and fiber telecom infrastructure in Indonesia
1 Prime provider of tower and fiber telecom infrastructure in Indonesia Tower, microcell and DAS Fiber 2,783 km Fiber Others 12% Java Medan 102 66% Sumatra Batam – Singapore 84 22% 66% 6,346 Towers of towers in Java 1 (29% in Jakarta) Kalimantan 555 Microcells Sumatra Bandung Jatim – Kalsel 83 Distr
Slide 13: Strong execution track record
2 Strong execution track record… Towers Tenants Revenue (IDR Bn) 6,901 11,471 1,915 > 6.2x > 7.5x > 6.7x increase in increase in increase in towers tenants revenue 1,121 286 1,539 2010 1Q17 2010 1Q17 2010 LQA 1Q17 12
Slide 14: Of both organic and inorganic growth
2 …of both organic and inorganic growth Build-to-suits (“BTS”) towers Acquired towers 418 3,642 329 238 244 1,274 116 521 493 35 Pre-2012 2012 2013 2014 2015 2016 Pre-2012 2012 2013 2014 Indonesia's third largest independent tower portfolio comprising 1,380 build-to-suit ("B2S") towers and 5,930 acq
Slide 15: Entrenched customer relationships
3 Entrenched customer relationships… Breakdown of 1Q17 revenue contribution by operator We continue to grow our Telkomsel tenancies Breakdown of new tenancies (%) Others 11% 11.4% 27% 38% 38% 37% 52% 49% 54% 6.9% 68% IDR478.7Bn Average of 58% 1Q17 42.9% 89% 18.3% revenue 73% 62% 62% 63% 48% 51% 46%
Slide 16: Underpinning significant high quality backlog
3 …underpinning significant high quality backlog Contracted revenue as of 1Q17 Tenancies expiry schedule Others 7.5% 0 – 2 years 12.4% 6.7% 7+ years 45.8% 48.0% Contracted 11,471 3 – 4 years 22.5% 24.0% Revenue Tenancies 15.3% 5 – 6 years 17.8% 92.5% of contracted revenue are sourced 63.6% of tenanc
Slide 17: Data network / LTE infrastructure services are our key differentiators
4 Data network / LTE infrastructure services are our key differentiators STP’s data network / LTE infra related products and services Wi-fi access Our IBS / Indoor Mobile point & Fiber to the MCP ISP services capabilities DAS backhaul hotspot home services leasing Telecom Telecom Telecom operators o
Slide 18: Consistent growth with industry-leading profitability metrics
5 Consistent growth with industry-leading profitability metrics Strong growth trajectory with industry-leading profitability metrics (IDR Bn) (IDR Bn) 112 2,000 85.9% 85.3% 86.1% 90.0% 1,800 85.3% 1,600 82.9% 1,400 112 80.0% 99 1,915 1,200 1,674 1,821 89 1,000 800 99 1,554 1,648 973 600 89 1,422 70.
Slide 19: Well-utilized balance sheet
6 Well-utilized balance sheet 1Q17 net debt build-up Prudent risk management policy IDR Bn FX hedges in place to mitigate volatility in currency and 4.9x (0.2x) (0.5x) 4.2x interest rate 8,044 6,861 90%3 of all outstanding debt is hedged against interest rate (389) (793) fluctuation risk 87% o
Slide 20: Strong management team
7 Strong management team Nobel Tanihaha Juliawati Gunawan Tommy Gustavi Utomo President Director Director Director • President Director of STP since • Financial Controller of STP from • Head of Property Management 2006 2009 to 2011, and Director of of STP from 2012 to 2013, and STP since 2011 Direct
Slide 21: We lead our peers across several key operating and financial metrics
We lead our peers across several key operating and financial metrics Towers 6,901 14,587 12,874 Organic 281 2 85 3 1,150 Tower Adds 1 Tenancy 1.66x 1.65x 1.66x Ratio “Big 4” Revenue 89% 84% 1 89% 1 Contribution Fiber & Microcells Revenue 10.2% 6.0% 1 None Contribution EBITDA 86.1% 86.3% 86.6% Margin
Slide 22: Section 3: Growth Strategy
Section 3 Growth Strategy 21
Slide 23: Our four pillars of organic growth
Our four pillars of organic growth CONTINUED PRUDENT & SELECTIVE TOWER E X PA N S I O N O F GROWTH TO COLOCATION BUILD-TO-SUIT FIBERISATION ON EXISTING ROLL-OUT NEW VECTORS PORTFOLIO 22
Slide 24: Significant tenancy ratio expansion potential
1 Significant tenancy ratio expansion potential Evolution of our tenancies over time Beginning tenancy ratio for all acquired / B2S sites1 1.15x Tenancy ratio at Mar 20172 1.77x Organic colocation by STP +0.62x Axis case study3 – our first acquisition 2.48x 2.48x 2.32x 2.40x 1,309 1,308 1.92x 1,268
Slide 25: Organic growth via disciplined build-to-suit initiatives
2 Organic growth via disciplined build-to-suit initiatives Build-to-suits (“BTS”) Our philosophy 418 No speculative build-to-suits Average of 319 Assessment of colocation potential 313 BTS per year before tower builds 233 242 Towers are FCF-accretive on Day 1 Contracts with tenants legally b
Slide 26: Superior competitive advantage in tower fiberisation
3 Superior competitive advantage in tower fiberisation Partnership with icon+ unlocks new potential for STP to tap on existing electrical infrastructure to expand fiber network Electrical cable Electrical cable Electrical cable Right to use fiber built alongside Right to use fiber built alongside el
Slide 27: Expansion of growth to new vectors
4 Expansion of growth to new vectors Home fiberisation Enterprise solution Partnership with icon+ unlocks potential of home Signed a framework agreement with Hitachi to jointly fiberization provide data center and cloud services to enterprises in Indonesia Solution for telecom operators to off
Slide 28: Highly fragmented market provides inorganic growth opportunities
Highly fragmented market provides inorganic growth opportunities Indonesia independent tower market 1 # of towers Total towers of c. 42,000 2 14,587 12,874 6,901 1,040 1,000 719 500 Protelindo Tower Bersama STP Bali Tower KIN Centrin Gihon Indonesia independent tower market is highly fragmented, a
Slide 29: Appendix A: Summary Financials
Appendix A Summary Financials 28
Slide 30: Income statement
Income statement Income statement (in IDR millions, unless otherwise specified) 2013 2014 2015 2016 1Q 2016 1Q 2017 (in IDR millions) (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Revenue 840,097 1,071,929 1,785,853 1,821,446 465,900 478,731 Cost of Revenue Depreciation and Amortiz
Slide 31: Statements of financial position (assets)
Statements of financial position (assets) Statements of financial position (Assets, in IDR millions, unless otherwise specified) 2013 2014 2015 2016 1Q 2017 (Audited) (Audited) (Audited) (Audited) (Unudited) Current Assets Cash and Cash Equivalents 525,226 1,318,888 229,325 184,996 793,465 Trade Rec
Slide 32: Statements of financial position (liabilities)
Statements of financial position (liabilities) Statements of financial position (Liabilities, in IDR millions, unless otherwise specified) 2013 2014 2015 2016 1Q 2017 (Audited) (Audited) (Audited) (Audited) (Unaudited) Current Liabilities Trade Payables - Related Party 18,007 3,562 293 17,227 3,510
Slide 33: Statements of financial position (equity)
Statements of financial position (equity) Statements of financial position (Equity, in IDR millions, unless otherwise specified) 2013 2014 2015 2016 1Q 2017 (Audited) (Audited) (Audited) (Audited) (Unaudited) Equity Issued and Paid-Up Capital 79,429 79,436 113,758 113,758 113,758 Additional Paid-in
Slide 34: Statements of cash flows
Statements of cash flows Statements of Cash Flows ( in IDR millions) 2013 2014 2015 2016 1Q 2017 (Audited) (Audited) (Audited) (Audited) (Unaudited) Cash Flows from Operating activites Cash Received from Customers 603,107 1,432,225 1,201,587 1,622,474 1,244,970 Payment to Suppliers and Opex (371,175
Slide 35: Appendix B: Additional Materials
Appendix B Additional Materials 34
Slide 36: Proven track record of sites acquisition and synergies extraction
Proven track record of sites acquisition and synergies extraction Track record in acquisition of sites with high colocation potential Key criteria for target tower portfolios Tenancy ratio at Year Telco # towers acquisition High potential for future co-locations 2014 XL Axiata 3,500 1.66x 2014 Ind
Slide 37: XL towers case study
XL towers case study Deal Structure1 We have steadily improved tenancy ratios since the acquisition Towers acquired 3,500 Tenancy ratio (x) 1.72 Tenants acquired 5,793 1.71 Tenancy ratio 1.66x Purchase price IDR5,600Bn / c. US$464MM 1.69 EBITDA multiple 8.0-8.5x EBITDA Value per tower IDR1,600MM / c
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