PT Sarana Menara Nusantara Tbk · IDX:TOWR

PT Sarana Menara Nusantara Tbk — FY2017 Earnings Presentation

26 slides from PT Sarana Menara Nusantara Tbk's earnings presentation, March 2018

  1. Slide 1: 4Q 2017 and FY 2017 Results Presentation

    Indonesia’s Premier Telecommunication Infrastructure Company 4Q 2017 and FY 2017 Results Presentation PT Sarana Menara Nusantara, Tbk (SMN) 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 Maintain position as the leading telecom Protelindo* remains committed to maintaining its infrastructure company in Indonesia investment-grade rating, and plans to operate below net debt/last quarter annualised (LQA) 1 - Strong organi

  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 An attractive investment environment • Market performance The Jakarta Composite Index Indonesian CPI Inflation Index The JCI Index gained ~20% in 7,000 2017 and is one of the top 6,356 7.00% 6,500 performers in Southeast Asia 6,000 6.00% • Inflation and inter

  7. Slide 7: Indonesia Telecom Industry – Outlook

    Indonesia Telecom Industry – Outlook Strong demand for data services expected over the next five years Top 5 Indonesian Wireless Indonesia's average mobile data usage remains Increasing smartphone penetration.. Operators by connections relatively low Data usage (MB) per connection per month Smartpho

  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 • Major operators are continuing to expand • Surging data demand is generating the • New

  9. Slide 9: Indonesian Tower Industry – Key Growth Drivers

    Indonesian Tower Industry – Key Growth Drivers 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 Proforma impact of KIN acquisition on SMN3 27,011 ~2,00

  10. Slide 10: Work orders in progress through March 2018

    Work orders in progress through March 2018 Subtitle runs here • Tenant Lease work orders for organic BTS & colo in progress through end of March 2018 Period Organic tenancies Full year 2017 Commenced 1,591 tenancies YTD March 2018 Pipeline of over 2,000 tenancies • 2017 was SMN’s best year for new o

  11. Slide 11: Indonesia’s tower company comparison

    Indonesia’s tower company comparison Net debt / LQA EBITDA Subtitle runs here 1.9x 1.6x 1.4x FY15 FY16 FY17 (Dec 15) (Dec 16) (Dec 17) 4Q17 4Q17 4Q17 LQA Revenue (IDR bn) 5,440.2 4,191.7 1,864.6 LQA EBITDA (IDR bn) 4,741.8 3,631.9 1,608.3 EBITDA Margin 87.2% 86.6% 86.3% Interest Cost Annualized (IDR

  12. Slide 12: Debt profile

    Debt profile Debt maturity Subtitle runs here (stated in USD Mio) 3.3 45.0 3.0 71.2 4.4 98.7 156.5 11.6 83.0 45.6 15.5 7.6 138.4 138.4 38.0 36.0 45.0 18.0 118.5 83.0 48.8 62.7 2.7 36.0 15.5 7.6 3.3 3.0 4.4 4.4 8.9 9.6 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2018 2019 2020 2021 2022 2023 2024 IDR L

  13. Slide 13: And history of strong growth

    And history of strong growth SMN has demonstrated a strong track record of both organic and acquisition-led growth 2008 2009-2015 2016 2017 • Strongest demand for new sites • Achieved Global • 2010 Go public and new equipment leases by • Purchased Hutch Investment Grade operators since 2014 • 2014 B

  14. Slide 14: SMN snapshot

    SMN snapshot Protelindo has demonstrated a strong track record of both organic and acquisition-led growth Diversified revenue Strong revenue mix servicing the growth of 16.1%(2) largest MNOs in and EBITDA growth Indonesia with 54% of 21.4%(2) of towers in Java Indonesia’s largest independent telecom

  15. Slide 15: Summary Financial Results

    Divider slide Summary Financial Results © 2018 PT Sarana Menara Nusantara Tbk 15

  16. Slide 16: Full Year Financial Results

    Full Year Financial Results Revenue (in IDR Bio) * 419.1 5,337.9 5,053.1 (60.2) (74.1) (1.2%) (1.5%) 8.3% Reported Growth of 5.6% Actual Revenue NL Revenue Non-recurring New Lease Actual Revenue FY 2016 Revenue Revenue FY 2017 • New Lease revenue grew more than 8%,based on new tenancies and addition

  17. Slide 17: Full Year Financial Results

    Full Year Financial Results EBITDA (in IDR Bio) * 322.1 4,603.6 4,408.0 (52.4) (74.1) (1.2%) (1.7%) 7.3% Reported Growth of 4.4% Actual EBITDA NL EBITDA Non-recurring New Lease Actual EBITDA FY 2016 EBITDA EBITDA FY 2017 • New Lease EBITDA (net of churn) grew over 7%, with full growth impact for new

  18. Slide 18: 4Q17 Financial Results

    4Q17 Financial Results Revenue (in IDR Bio) * 92.2 1,360.1 1,321.3 (53.4) (4.0%) 6.9% Actual Revenue Non-recurring New Lease Actual Revenue 4Q 2016 Revenue Revenue 4Q 2017 4Q 2017 • Strong growth in new tenancies and additional equipment leases supported revenue growth offset by some non-renewals No

  19. Slide 19: 4Q17 Financial Results

    4Q17 Financial Results EBITDA (in IDR Bio) * 85.4 1,185.5 1,153.5 (53.4) (4.6%) 7.5% Actual EBITDA Non-recurring New Lease Actual EBITDA 4Q 2016 EBITDA EBITDA 4Q 2017 4Q 2017 • Maintained solid EBITDA cash flow generating capacity with commencement of new lease revenue Notes: * Management account /

  20. Slide 20: Tower Growth

    Tower Growth EBITDA (in IDR Bio) 292 14,854 14,562 2.0% Reported Increase of 2.0% Actual Towers Additional Actual Towers 4Q 2016 Towers 4Q 2017 • New BTS orders expected to continue to develop through 2018 © 2018 PT Sarana Menara Nusantara Tbk 20

  21. Slide 21: Tenancy Growth

    Tenancy Growth EBITDA (in IDR Bio) 1,591 25,011 24,144 (724) (3.0%) 6.6% Reported Increase of 3.6% Actual Tenants Lease Expiry Additional Actual Tenants 4Q 2016 Tenants 4Q 2017 • New tenancies partially offset by non-renewal on some leases • Does not include 3,643 new revenue generating additional e

  22. Slide 22: Balance Sheet and Income Statement Snapshot

    Balance Sheet and Income Statement Snapshot EBITDA (in IDR Bio) In IDR Billions 1Q 17 2Q 17 3Q 17 4Q 17 (unless otherwise stated) Income Statement Revenue 1,313.3 1,329.9 1,334.6 1,360.1 Revenue Growth (QoQ) - 0.6% 1.3% 0.4% 1.9% EBITDA 1,133.6 1,135.9 1,148.7 1,185.3 EBITDA Margin 86.3% 85.4% 86.1%

  23. Slide 23: Change in Accounting on SMN

    Change in Accounting on SMN 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 impact EBI

  24. Slide 24: SMN Consolidated Statement of Profit or Loss

    SMN Consolidated Statement of Profit or Loss Balance Chat Sheet Comparison (IDR Bn) 2015A 2016A 2017A Revenues 4,469.8 5,053.1 5,337.9 Cost of revenues (181.7) (209.5) (277.4) Depreciation and amortization (1,026.5) (1,185.0) (894.9) Gross income 3,261.6 3,658.7 4,165.6 Operating expenses (512.4) (4

  25. Slide 25: SMN Consolidated Statement of Financial Position

    SMN Consolidated Statement of Financial Position Balance As at 31 Sheet December Comparison 2017 (IDR Bn) 2015A 2016A 2017A ASSETS Current assets Cash and cash equivalents 2,986.8 2,905.3 2,348.3 Trade receivables 470.5 351.7 624.0 Other receivables 0.8 1.3 22.4 Inventories 11.1 – - Prepaid expenses

  26. Slide 26: 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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