Pt Solusi Tunas Pratama Tbk · IDX:SUPR
Pt Solusi Tunas Pratama Tbk — 3Q 2020 Earnings Presentation
24 slides from Pt Solusi Tunas Pratama Tbk's earnings presentation, November 2020
Slide 1: Investor Presentation PT Solusi Tunas Pratama Tbk
Investor Presentation PT Solusi Tunas Pratama Tbk November 2020
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: STP at a glance: Indonesia's premier optical & wireless infrastructure provider
STP at a glance: Indonesia’s premier optical & wireless infrastructure provider 6,418 towers1) 5,843 km2) 38 indoor DAS 3Q 2020 ~87% of 12,038 tenants1) fiber optic sites with EBITDA margin revenue from 1.9x tenancy ratio network 68 tenants of 83% the top-4 telcos3) Towers Tenants Revenue (IDR Bn) 6
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 Non Non Independent Independent Independent 2 Independent Independent Business model / Captive / Captive Significant growth
Slide 5: Supported by favourable mobile industry dynamics
…supported by favourable mobile industry dynamics… Supportive competitive and Healthy revenue growth amongst 4G coverage a focus area for pricing environment telecom operators mobile operators ● Post the SIM registration period (ended in May ● On the back of improving pricing dynamics, ● Indonesia i
Slide 6: Demand for mobile data continues to boom, driving need for higher quality coverage
…as demand for mobile data continues to boom which will drive the requirement for higher quality coverage We are only in the first inning of Indonesia's mobile data revolution… Mobile data per connection is expected Mobile broadband to continue being the Smartphone penetration is expected to increas
Slide 7: Tower industry poised to benefit from higher capex spend by mobile operators
Tower industry poised to benefit from higher capex spend by mobile operators Higher Capex for Network Investments 4G Coverage Growth: Operators looking to ex-Java expansion ● Both XL Axiata and Indosat have publicly committed to Operators planning to spend more capex over the next few years in an ef
Slide 8: Strong portfolio of tower and fiber assets covering major prime locations
Strong portfolio of tower and fiber assets covering major prime locations Tower and DAS Fiber 2), 3) Others 5,843km Fiber2), 3) 13% Medan 320 6,418 Towers Sumatra 63% Batam – Singapore 40 Pontianak 84 24% Batam 44 of towers in Java1) 12,038 Tenants (13% in Jakarta) Java Sumatra Kalimantan 63% 38 Dis
Slide 9: Optimized business strategy for STP's core tower business
Optimized business strategy for STP’s core tower business Colocation Customer Quality Pricing Strategy Land Lease • Leveraging prime • Improved quality of • Optimizing pricing • Negotiations of land locations of existing earnings with the strategy to enhance lease renewal start 1–2 tower portfolio,
Slide 10: Actively enhancing returns on its tower portfolio through colocation
Actively enhancing returns on its tower portfolio through colocation Continued focus on colocation in a challenging operating environment… …resulting in increasing tenancy ratio over the last 5 years Annual gross tenancy additions 1.88 961 931 781 1.75 1.71 564 1.69 1) 2) 1.65 1.64 482 204 2015 2016
Slide 11: Entrenched relationship with prime customers, underpinning significant high quality backlog
Entrenched relationship with prime customers, underpinning significant high quality backlog 87% of revenue from top 4 operators… … complemented by longer tower tenancy expiry schedule Annualized 3Q 2020 Revenue Tenancies expiry schedule as at Sep 30, 2020 Others 0 – 2 years 12.9% 7+ years 9.7% 21.2%
Slide 12: Growth strategy for our fiber business
Growth strategy for our fiber business Continue B2S Fiber to Aggressive 2nd tenant Expand FTTH Open Increase NAP1 Capacity Tower onboarding Access Home Pass • Continue implementation • Engagement with 2nd • Greater engagement with • Overall increase in plans for rolling out fiber tenant or 3rd tenan
Slide 13: Fiber network offers growth upside through mobile backhaul and FTTH roll-out
STP’s fiber network offers potential growth upside through mobile backhaul and fiber-to-the-home (“FTTH”) roll-out Mobile Backhaul overview FTTH overview Home Pass(1) Home Connect • Mobile Backhaul refers to the network between the base station • FTTH refers to fiber optics roll-out in residential a
Slide 14: Well-utilized balance sheet with continuous deleveraging and prudent hedging program
Well-utilized balance sheet with continuous deleveraging and prudent hedging program 3Q20 net debt build-up Prudent risk management policy IDR Bn FX hedges in place to mitigate volatility in currency and 4.3x (0.2x) (0.1x) 4.0x interest rate 7,131 6,486 (383) (262) 54% of all outstanding debt2)
Slide 15: Business resilient despite COVID-19 with positive tailwinds for growth
Business resilient despite COVID-19 with positive tailwinds for growth Tenancies Growing as Fiber Demand Sustained Growth while Planned Maintaining Liquidity ● COVID 19 increases demand for ● Large increase in fiber connectivity ● Revenue growth sustained despite wireless broadband connectivity dema
Slide 16: Appendix A: Supplementary Information
Appendix A: Supplementary Information 1 16 15 6
Slide 17: 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 2019 (%) Download Speed (Mbps) 122% 208 192 94% 171 89% 159 49% 44% 81 38% 55 14% 13% 24 21 Korea Hong Kong Singapore Vietnam Thailand Malay
Slide 18: Appendix B: Summary Financials
Appendix B: Summary Financials 17
Slide 19: Income statement
Income statement Income statement (in IDR millions, unless otherwise specified) FY 2016* FY 2017 FY 2018 FY 2019 3Q 2019 3Q 2020 (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Revenue 1,821,446 1,908,487 1,899,775 1,767,050 1,306,690 1,430,588 Cost of revenue (130,218) (125,183) (11
Slide 20: Statements of financial position (assets)
Statements of financial position (assets) Statements of financial position (Assets, in IDR millions, unless otherwise specified) FY 2016* FY 2017 FY 2018 FY 2019 3Q 2019 3Q 2020 (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Current Assets Cash and Cash Equivalents 184,996 280,149 1
Slide 21: Statements of financial position (liabilities)
Statements of financial position (liabilities) Statements of financial position (Liabilities, in IDR millions, unless otherwise specified) FY 2016* FY 2017 FY 2018 FY 2019 3Q 2019 3Q 2020 (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Current Liabilities Trade Payables - Related Par
Slide 22: Statements of financial position (equity)
Statements of financial position (equity) Statements of financial position (Equity, in IDR millions, unless otherwise specified) FY 2016* FY 2017 FY 2018 FY 2019 3Q 2019 3Q 2020 (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Equity Issued and Paid-Up Capital 113,758 113,758 113,758
Slide 23: Statements of cash flows
Statements of cash flows Statements of cash flows ( in IDR millions) FY 2016* FY 2017 FY 2018 FY 2019 3Q 2019 3Q 2020 (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Cash Flows from Operating Activities Cash Received from Customers 1,622,474 2,225,161 1,892,016 2,035,354 1,688,551 1,
Slide 24: Thank You
Thank You 23
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