PT Sarana Menara Nusantara Tbk · IDX:TOWR

PT Sarana Menara Nusantara Tbk — Q3 2018 Earnings Presentation

25 slides from PT Sarana Menara Nusantara Tbk's earnings presentation, Dec 23, 2018

  1. Slide 1: 3Q 2018 Results Presentation

    Indonesia’s Premier Telecommunication Infrastructure Company 3Q 2018 Results Presentation 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 © 2018 PT Sarana Menara Nusantara, Tbk 2

  3. Slide 3: Strategy & Achievements

    Divider slide Strategy & Achievements © 2018 PT Sarana Menara Nusantara, Tbk 3

  4. Slide 4: Executing “Build, Buy, Return” Strategy

    Executing “Build, Buy, Return” Strategy Strategy and Achievements …In the absence of large acquisition Maintain position as the leading telecom opportunities, we expect Protelindo to continue infrastructure company in Indonesia paying high shareholder returns over the next few years. Nonetheless, th

  5. Slide 5: Market Overview

    Divider slide Market Overview © 2018 PT Sarana Menara Nusantara, Tbk 5

  6. Slide 6: Indonesia Macro Economy – Key Indicators

    Indonesia Macro Economy – Key Indicators Strong Fundamentals in an Uncertain Environment • Markets negatively The Jakarta Composite Index Indonesian CPI Inflation Index impacted a global trade 7.000 war issue and US interest 7,00% CPI Inflation Index rate policy 6,00% 6.000 5,797 Price (IDR) 5,00% •

  7. Slide 7: Indonesia Telecom Industry – Outlook

    Indonesia Telecom Industry – Outlook Strong demand for data services expected over the next five years …Indonesia's average mobile data usage …Increasing smartphone penetration.. remains relatively low Data usage (GB) per connection per month Jun'18 8,0 128% 7,9 7,7 120% 112% 102% 92% 81% 68% 47% 2,

  8. Slide 8: Indonesian Tower Industry – Key Growth Drivers

    Indonesian Tower Industry – Key Growth Drivers Potential for organic growth in line with the increasing demand for Telco services 1. Telecom industry coverage growth 2. Telecom industry capacity growth 3. iForte and non tower business • Major operators are continuing to expand • Surging data demand

  9. Slide 9: Indonesian Independent Tower Industry – Key Growth Driver

    Indonesian Independent Tower Industry – Key Growth Driver Potential for organic growth in line with 4. Highly fragmented the market withincreasing demand for Telco services consolidation potential Total number of towers owned by ITCs in Indonesia: ~42,000 Total number of towers in Indonesia : ~90,00

  10. Slide 10: Work orders in progress

    Work orders in progress • Tenant Lease work orders for organic BTS & colo in progress through end of Oct 2018 Period Organic tenancies Full year 2017 Commenced 1,591 tenancies YTD Sept 2018 Commenced 1,940 tenancies Accumulated new orders of 3,076 tenancies; remaining YTD Oct 2018 balance of 1,136 n

  11. Slide 11: Indonesia’s tower company comparison

    Indonesia’s tower company comparison TOWR Net debt / LQA EBITDA 1.9x 1.8x 1.4x Subtitle runs here FY17 2Q18 3Q18 (Dec 17) (June 18) (Sept 18) 3Q18 2Q18 2Q18 LQA Revenue (IDR bn) (1) 6,161.6 4,168.8 1,912.4 LQA EBITDA (IDR bn) (1) 5,178.0 3,591.1 1,649.1 EBITDA Margin 84.0% 86.1% 86.2% Interest Cost

  12. Slide 12: Indonesian Tower Industry – Defining Features

    Indonesian Tower Industry – Defining Features One of the most attractive tower industries globally High barriers to entry, Long term High EBITDA including economies of Market leaders revenues with Significant growth margins and free Strong operating scale and the need for have the highest minimal ch

  13. Slide 13: Debt profile

    Debt profile Debt maturity Subtitle runs here (stated in USD Mio) 0.6 1.2 100.1 1.8 52.7 103.6 5.8 70.7 3.9 176.9 57.2 138.4 176,9 138.4 44,3 6,9 103,6 55,8 70,7 52,7 50,3 0,6 1,2 1,8 2,4 3,9 3,4 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2018 2019 2020 2021 2022 2023 2024 IDR Loan IDR Bond USD Bond

  14. Slide 14: And history of strong growth

    And history of strong growth Protelindo has demonstrated a strong track record of both organic and acquisition-led growth 2008 2009-2015 2016 2017-3Q 2018 • 2010 Go public • Achieved Global • 2017 Protelindo’s best year for • 2014 BTS 1,500 Investment Grade organic orders since 2013 with towers for

  15. Slide 15: Protelindo snapshot

    Protelindo snapshot Protelindo has demonstrated a strong track record of both organic and acquisition-led growth Strong average Diversified revenue revenue growth of mix servicing the 10.5%(2) and largest MNOs in EBITDA growth of Indonesia with 52% 9.3%(2) of towers in Java Indonesia’s largest indep

  16. Slide 16: Summary Financial Results

    Divider slide Summary Financial Results © 2018 PT Sarana Menara Nusantara, Tbk 16

  17. Slide 17: Company’s Performance Highlights Q3 2017 vs Q3 2018

    Company’s Performance Highlights Q3 2017 vs Q3 2018 Revenue (in IDR Bio) 122.7 * 1,540.4 83.1 9.2% 1,334.6 6.2% Reported Growth of 15.4% Actual Revenue New Lease New Lease Actual Revenue 3Q 2017 KIN Revenue Revenue 3Q 2018 • Solid growth in new tenancies and additional equipment leases supported by

  18. Slide 18: Company’s Performance Highlights Q3 2017 vs Q3 2018

    Company’s Performance Highlights Q3 2017 vs Q3 2018 EBITDA (in IDR Bio) * 81.4 1,294.5 64.4 7.1% 1,148.7 5.6% Reported Growth of 12.7% Actual EBITDA New Lease New Lease Actual EBITDA 3Q 2017 KIN EBITDA EBITDA 3Q 2018 • Maintained EBITDA cash flow generating capacity with commencement of new lease re

  19. Slide 19: Tower Growth

    Tower Growth EBITDA (in IDR Bio) 1,036 17,234 1,459 7.0% 14,739 9.9% Reported Increase of 16.9% Actual Towers Additional Additional Actual Towers 3Q 2017 Towers KIN Towers 3Q 2018 • New BTS orders expected to continue to develop through 2018 © 2018 PT Sarana Menara Nusantara, Tbk 19

  20. Slide 20: Tenancy Growth

    Tenancy Growth EBITDA (in IDR Bio) 2,226 28,113 2,015 24,728 (856) 9.0% (3.5%) 8.1% Reported Increase of 13.7% Actual Tenants Lease Expiry Additional Additional Actual Tenants 3Q 2017 Tenants KIN Tenants 3Q 2018 • New tenancies as strong organic growth comes on line • Does not include 2,637 revenue

  21. Slide 21: Balance Sheet and Income Statement Snapshot

    Balance Sheet and Income Statement Snapshot EBITDA (in IDR Bio) In IDR Billions 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 (unless otherwise stated) Income Statement Revenue 1,334.6 1,360.1 1,361.9 1,442.8 1,540.4 Revenue Growth (QoQ) 0.4% 1.9% 0.1% 5.9% 6.8% EBITDA 1,148.7 1,185.3 1,167.8 1,217.0 1,294.5 EBITDA

  22. Slide 22: Change in Accounting on Protelindo

    Change in Accounting on Protelindo Balance Sheet Comparison* Dec - 2016 Dec - 2017 In IDR Billions • PSAK 13: Investment PSAK 16 PSAK 16 PSAK 13 Cost PSAK 13 Cost Properties, PSAK 16: Fixed Assets Equity Retained Earnings 10,201 5,998 11,712 6,546 • This is an accounting change only and does not imp

  23. Slide 23: SMN Consolidated Statement of Profit or Loss

    SMN Consolidated Statement of Profit or Loss Balance Chat (IDRSheet Bn) Comparison 2015A 2016A 2017A 1Q 2018 2Q 2018 3Q 2018 Revenues 4,469.8 5,053.1 5,337.9 1,361.9 1,442.8 1,540.4 Cost of revenues (181.7) (209.5) (277.4) (78.0) (101.7) (111.7) Depreciation and amortization (1,026.5) (1,185.0) (894

  24. Slide 24: SMN Consolidated Statement of Financial Position

    SMN Consolidated Statement of Financial Position As at 30 September 2018 (IDR Bn) 2015A 2016A 2017A 1Q 2018 2Q 2018 3Q 2018 ASSETS Current assets Cash and cash equivalents 2,986.8 2,905.3 2,348.3 1,281.3 1,945.2 1,297.6 Trade receivables 470.5 351.7 624.0 1,696.3 2,175.5 1,105.3 Other receivables 0.

  25. Slide 25: 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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