PT Sarana Menara Nusantara Tbk · IDX:TOWR
PT Sarana Menara Nusantara Tbk — Q2 2017 Earnings Presentation
24 slides from PT Sarana Menara Nusantara Tbk's earnings presentation, 2017
Slide 1: Indonesia's Premier Tower Company: 2Q 2017 Results Presentation
PROTELINDO PT. SARANA MENARA NUSANTARA, TBK. (TOWR) Indonesia’s Premier Tower Company 2Q 2017 Results Presentation
Slide 2: Disclaimer
Disclaimer These materials have been prepared by PT Sarana Menara Nusantara, Tbk. (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 prese
Slide 3: Agenda
Agenda Strategy Market Overview Summary Financial Results 2
Slide 4: Indonesia Macro Economy – Key Indicators
Indonesia Macro Economy – Key Indicators An attractive investment environment 1 Market performance • The Jakarta Composite Index • Indonesian CPI Inflation Index The JCI Index continued to trade up in 2Q17 and has increased by 6,000 7.00% 26.9% since 2016 5,830 5,500 6.00% 5,000 5.00% 4.20% 2 Infl
Slide 5: 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 remains relatively Increasing smartphone penetration.. Top 5 Indonesian Wireless Operators by low connections Data usage (MB) per connection per month 2015 –
Slide 6: Indonesian Tower Industry – Key Growth Drivers
Indonesian Tower Industry – Key Growth Drivers 1 Potential for organic growth in line with increasing demand for Telco services 2 3 Telecom industry coverage growth Telecom industry capacity growth iForte • Major operators are beginning to expand coverage ex- • Surging data demand is generating the
Slide 7: Indonesian Tower Industry – Key Growth Drivers
Indonesian Tower Industry – Key Growth Drivers 4 Highly fragmented market with consolidation potential Total number of towers owned by MNOs that have Total number of towers owned by ITCs in Indonesia: ~42,000 divested tower assets: ~14,000 35% of total ITCs 14,6141 STP and KIN are understood 31% of
Slide 8: Leading Tower Company Globally
Leading Tower Company Globally ROIC Comparison (1) 2015 2016 2Q 2017 (2) 20.7% 21.2% 20.9% 14.4% 14.9% 13.1% 8.1% 9.0% 8.8% 6.6% 7.0% 7.0% 5.0% 4.9% 5.0% (3) TOWR TOWR TBIG SUPR AMT CCI TBIG Baa3 Ba2 - Baa3 Baa3 Moody's SUPR BBB- BB- BB- BBB- BBB- Credit Ratings S&P AMT BBB- BB- BB- BBB BBB- Fitch C
Slide 9: Indonesia's Tower Company Comparison
Indonesia’s Tower Company Comparison Net Debt / LQA EBITDA (x) 1.9 x 1.6 x 1.2 x FY15 FY16 2Q17 (Dec-15) (Dec-16) (Jun-17) (4) (4) LQA EBITDA (IDR bn) 4,543.4 3,418.5 1,667.8 Interest Cost Annualized 615.3 1,783.8 895.0 (IDR bn) Recurring FCF (IDR bn) 3,928.2 1,634.6 772.8 EBITDA Margin 85.4% 86.8%
Slide 10: Improved Stock Liquidity and Valuation Post re-IPO
Improved Stock Liquidity and Valuation Post re-IPO 9
Slide 11: Debt Profile
Debt Profile Debt Maturity Stated in USD Mio Previous 31.2 291.0 - 150.6 2.7 75.1 - 73.6 7.7 138.4 Current 31.2 171.0 60.0 150.6 2.7 75.1 60.0 73.6 7.7 138.4 53.9 38.0 138.4 30.0 37.5 112.6 75.1 60.0 73.6 60.0 49.6 31.2 2.7 7.7 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2018 2019 2020 2021 2022 2023
Slide 12: 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 2Q 2017 2010 Go public Increased demand for new sites and Achieved Global Investment Grade 2014 BTS 1,500 towers for new equipment leases by operato
Slide 13: Protelindo Snapshot
Protelindo Snapshot Indonesia’s largest Strong revenue Solid balance sheet and Founded by former American independent tower operator with growth of 22.1% (2) and amongst the lowest Tower management and #14,614 towers(1) and EBITDA growth of 22.9% (2) financing costs in the pioneers in the tower indu
Slide 14: Summary Financial Results
Summary Financial Results h PROTELINDO
Slide 15: 2Q 2017 Financial Results: Revenue
2Q 2017 Financial Results Revenue (in IDR Billions) *** IDR 165.6** IDR 1,329.9 IDR 41.2 IDR 1,252.8 * (IDR 58.4) IDR 124.4 (IDR 30.1) (4.7%) (2.4%) 13.3% Solid Top Line Revenue Growth New Lease Actual Revenue Non-Recurring Netherland Actual Revenue Revenue 2Q 2016 Revenue Revenue 2Q 2017 2Q 2017 •
Slide 16: 2Q 2017 Financial Results: EBITDA
2Q 2017 Financial Results EBITDA (in IDR Billions) ** IDR 112.4 IDR 1,135.9 IDR 1,108.3 * (IDR 58.4) (IDR 26.4) (5.3%) (2.4%) 10.2% Solid Top Line EBITDA Growth New Lease Actual EBITDA Non-Recurring Netherland Actual EBITDA EBITDA 2Q 2016 EBITDA EBITDA 2Q 2017 2Q 2017 • Growth in EBITDA generating c
Slide 17: Tower Growth
Tower Growth Towers 14,775* 99 (260) 14,614 0.7% (1.8%) Reported Decrease of 1.1% Actual Towers Additional Actual Towers Sale NL Towers 2Q 2016 Towers 2Q 2017 • Decrease in number of towers due to sale of Netherlands operation. Notes: * includes towers from acquisition of towers from XL Axiata; reve
Slide 18: Tenant Growth
Tenant Growth Tenants 24,726 * (548) (535) 753 ** 24,396 62 691 (2.2%) (2.1%) 3.0% Slight Decline in Tenancies Actual Tenants Sale Netherland Additional Actual Tenants Lease Expiry 2Q 2016 Tenancies Tenants 2Q 2017 • Does not include 3,467 new revenue generating leases for additional equipment. Note
Slide 19: Balance Sheet and Income Statement Snapshot
Balance Sheet and Income Statement Snapshot Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 (IDR Billions, unless otherwise stated) Income Statement Tower Revenue 1,209.7 1,271.5 1,270.0 1,244.3 1,246.6 Growth 6.7% 5.1% -0.1% -2.0% 0.2% VSAT Services 28.8 22.4 30.9 43.1 53.3 Growth 21.8% -22.0% 37.9% 39.2% 23.8% MWIF
Slide 20: Change in Accounting on Protelindo
Change in Accounting on Protelindo Balance Sheet Comparison* Dec-2016 June-2017 In IDR Bio PSAK 16 PSAK 16 PSAK 13 PSAK 13 Cost Cost • PSAK 13: Investment Assets: Current Assets 3,595 3,595 5,439 5,439 Properties, PSAK 16: Fixed Assets 239 12,903 302 12,533 Fixed Assets Investment Properties 18,269
Slide 21: SMN Consolidated Statement of Profit or Loss
SMN Consolidated Statement of Profit or Loss (IDR Bn) 2014A 2015A 2016A 1Q 2017 2Q 2017 Revenues 4,106.2 4,469.8 5,053.1 1,313.3 1,329.9 Cost of revenues (238.3) (181.7) (209.5) (66.4) (74.2) Depreciation and amortization (338.2) (389.8) (459.3) (121.4) (117.5) Gross income 3,529.7 3,898.3 4,384.3 1
Slide 22: SMN Consolidated Statement of Financial Position
SMN Consolidated Statement of Financial Position As at 31 December (IDR Bn) 2014A 2015A 2016A 1Q 2017 2Q 2017 ASSETS Current assets Cash and cash equivalents 2,009.6 2,986.8 2,905.3 2,421.9 4,743.3 Trade receivables 571.9 470.5 351.7 849.9 594.5 Other receivables 1.0 0.8 1.3 1.5 1.9 Inventories – 11
Slide 23: Strategy
Strategy q)) PROTELINDO
Slide 24: Enhancing Shareholder Value - Build, Buy, Return
Enhancing Shareholder Value - Build, Buy, Return Indonesia's Premier Tower Company Protelindo remains committed to maintaining its investment-grade rating, and plans to operate below net debt/last quarter annualised (LQA) EBITDA of 3.0x (2016: 1.6x). We see scope for M&A opportunities as the company
PT Sarana Menara Nusantara Tbk (Protelindo) — Q2 2017 Earnings Presentation on 6ix