Pt Sarana Menara Nusantara Tbk · IDX:TOWR
Pt Sarana Menara Nusantara Tbk — Q1 2023 Earnings Presentation
26 slides from Pt Sarana Menara Nusantara Tbk's earnings presentation, May 2023
Slide 1: Indonesia's Premier Digital Infrastructure Company: 1Q 2023 Results Presentation
Indonesia’s Premier Digital Infrastructure Company 1Q 2023 Results Presentation PT Sarana Menara Nusantara Tbk TOWR.JK / TOWRIJ www.ptsmn.co.id [email protected]
Slide 2: SMN Investment Highlights
SMN Investment Highlights Premier digital infrastructure company in Indonesia One of the largest digital infrastructure Continuous strong performance companies in Indonesia with 29,757 (a) 5-yr Revenue 16.0% towers and 179,155 km fiber* (a) 5-yr EBITDA CAGR 15.9% Solid build-to-suit model for Sustai
Slide 3: TOWR strategy supports ESG & sustainability goals
TOWR strategy supports ESG & sustainability goals 1. Capital Management 2. Low-risk business 3. ESG-conscious company - Access to low-cost funding - Digital infrastructure business with - Very small carbon footprint high demand difficult to replace. - 95% of internet traffic in Indonesia is - Liquid
Slide 4: The Industry
The Industry @2023 PT Sarana Menara Nusantara Tbk 3
Slide 5: Tower and Fiber Business
Tower and Fiber Business Long-term Predictable Revenue with Upside Long-term contracts* (10 years for tower and can be longer PREDICTABLE REVENUE for fiber), non-cancellable and renewable DEPENDENT TENANTS Contract renewal likely due to high relocation cost and significant network impact UPSIDE FROM
Slide 6: Typical Tower Company Growth Model
Typical Tower Company Growth Model New Built-to-Suit Tower Colocation Boosts ROI Additional towers and contract renewals grow revenue Colocation boosts unlevered ROI and accelerates payback period Contract renewals *Assuming 10 years ground lease Assuming 100 existing towers with 10 year lease perio
Slide 7: Indonesia Tower Industry – A Growing Market
Indonesia Tower Industry – A Growing Market Low network penetration with High EBITDA margin, low capex, no colocation discount, no significant headroom in 4G expansion obligation to provide power in contract and low 4G internet speed Western Indonesia USA India China Europe Non Non Predominant Tower
Slide 8: SMN 1Q2023 Performance
SMN 1Q2023 Performance @2023 PT Sarana Menara Nusantara Tbk 7
Slide 9: Company Strategy: Build – Buy – Return
Company Strategy: Build – Buy – Return We will maintain our position as a leading telecom infrastructure company and continue to deliver optimal value to our stakeholders. • Invest in Built-to-suit towers and BUILD colocation. • Expand fiber optic network, in ➢ Added 746 towers yoy. particular tower
Slide 10: Diverse Product Portfolio
Diverse Product Portfolio TOWER Fiber to The Tower (FTTT) CONNECTIVITY • Total 29,757 towers and • FTTT increases the value and • Actively seeking opportunities 53,820 tenants as of 31 utility of our network to Telcos. to provide connectivity (with March 2023. Tenancy ratio various offering using VS
Slide 11: Diversifying Business Base
Diversifying Business Base Capex Spend 2016-1Q23 20,000 60,000 18,000 48,053 18,259 46,439 50,000 16,000 39,850 14,000 40,000 12,000 20,568 10,000 30,000 8,000 15,670 10,085 20,000 6,000 6,072 3,144 4,000 4,715 4,586 3,713 4,221 10,000 2,000 999 677 1,023 605 1,009 86 301 3,445 1,114 157 - - 2016 20
Slide 12: Track Record of Consistent Growth …
Track Record of Consistent Growth … XL towers acquisition STP and XL acq Hutch towers Hutch acq Hutch towers iForte acq (2,500 towers) KIN Acq Indosat Acq Bumen acq GIK acq (125 (1,646 acq (5,085 towers) acq (421 towers) (1,369 towers) (1,000 towers) towers) (6,943 towers) towers) 60,000 182,000 162
Slide 13: and Strong Financial Performance
and Strong Financial Performance In Rp Bn 12,000 10,000 8,000 8,606 8,246 7,101 6,000 6,332 5,583 4,000 4,885 4,998 5,339 3,213 2,430 2,000 1,534 1,114 872 340 529 168 - 2016 2017 2018 2019 2020 2021 2022 1Q23 Ann Revenue Tower Revenue Non Tower EBITDA AFFO* 1Q23 2016 2017 2018 2019 2020 2021 2022 C
Slide 14: … with Excellent Future Revenue Visibility
… with Excellent Future Revenue Visibility Long term contracts and commitments underwrite more than Rp68.1 trillion of committed future revenue through 2042, not including value of potential future contract renewals. 68,563 68,069 63,204 4,958 4,447 63,6228,098 52,238 6,582 51,007 63,605 7,157 26,05
Slide 15: Strong Investment Grade Balance Sheet
Strong Investment Grade Balance Sheet Leverage comfortably within investment grade range despite acquisitions and dividend. 5.0 4.4 4.4 4.4 4.5 4.3 4.2 4.2 4.0 3.5 Net Debt to LQA EBITDA (x) 3.0 2.4 2.5 2.4 2.5 2.1 2.2 2.1 2.0 1.8 1.6 1.5 1.5 1.0 0.5 0.0 2015 2016 2017 2018 2019 2020 1Q21 2Q21 3Q21
Slide 16: SMN 1Q2023 Summary of Financial Results
SMN 1Q2023 Summary of Financial Results @2023 PT Sarana Menara Nusantara Tbk 15
Slide 17: Sarana Menara Nusantara (SMN) Group
Sarana Menara Nusantara (SMN) Group Abridged consolidated statement of profit and loss. (In RP Bn) 2017 2018 2019 2020 2021 2022 1Q22 1Q23 yoy Revenues 5,337.9 5,867.9 6,454.3 7,445.4 8,635.3 11,035.7 2,619.3 2,864.7 9.4% Cost of revenues (277.4) (427.5) (458.3) (415.2) (480.4) (607.8) (143.6) (176.
Slide 18: Sarana Menara Nusantara (SMN) Group
Sarana Menara Nusantara (SMN) Group Abridged consolidated statement of financial position. (In RP bn) 2016 2017 2018 2019 2020 2021 2022 1Q23 ASSETS Current assets Cash and cash equivalents 2,905.3 2,348.3 963.4 593.8 1,442.6 4,748.4 308.6 821.6 Restricted cash - - - 6.6 4.9 2.0 0.0 0.0 Trade receiv
Slide 19: Sarana Menara Nusantara (SMN) Group
Sarana Menara Nusantara (SMN) Group Abridged consolidated statement of cashflows (3 months ended March 2023). in Rp Bn 2,640 * Numbers included VAT ** Including ground lease *** ATMI Acquisition @2023 PT Sarana Menara Nusantara Tbk 18
Slide 20: Profit and Loss Movement 1Q2023
Profit and Loss Movement 1Q2023 in Rp Bn Revenue EBITDA Net Income 2,928.5 2,549.7 2,864.7 2,438.9 -63.9 (-2.2%) -110.9 (-4.3%) 853.5 883.3 2,619.3 2,250.6 752.4 -130.9 (-14.8%) +245.3 (9.4%) +188.2 (8.4%) -101.1 (-11.8%) 1Q22 4Q22 1Q23 1Q22 4Q22 1Q23 1Q22 4Q22 1Q23 @2023 PT Sarana Menara Nusantara
Slide 21: Revenue Analysis (1Q22 vs 1Q23)
Revenue Analysis (1Q22 vs 1Q23) in Rp Bn Towers FTTT 2,140.0 ( 78.6 ) 194.9 412.3 2,061.4 (3.7%) 217.3 89.7% 1Q22 Net Movement 1Q23 1Q22 Net Movement 1Q23 1Q22 Connectivity Total Revenue 245.4 2,864.7 391.0 129.0 2,619.3 9.4% 262.0 49.2% 1Q22 Net Movement 1Q23 1Q22 Net Movement 1Q23 @2023 PT Sarana
Slide 22: Summary Operational Data (Mar vs Mar 23)
Summary Operational Data (Mar 22 vs Mar 23) Towers Tenancy 54,580 29,757 53,820 29,011 #of Towers #of Tenancy -760 (-1.4%) +746 (2.6%) 1Q22 1Q23 1Q22 1Q23 FTTT Connectivity 34,842 162,399 81,319 12,833 #Activations Kms +81,080 (99.7%) +22,009(171.5%) 1Q22 1Q23 1Q22 1Q23 @2023 PT Sarana Menara Nusant
Slide 23: Appendix
Appendix @2023 PT Sarana Menara Nusantara Tbk 22
Slide 24: Foreign Exchange Exposure as of Mar 2023
Foreign Exchange Exposure as of 31 Mar 2023 Low risk from FX exposure as balance sheet naturally hedged. ASSET CONTRACTED REVENUE LIABILITIES Cash USD 128.6mn 2023 - USD 22mn Bond Investments USD 15.0mn 2024 - USD 17mn USD 138mn Total USD 143.6mn Total - USD 39mn Total ~USD 138mn Risk Mitigation: •
Slide 25: Long Term Debt: 49.1% floating, 50.9% fixed, avg. interest 6.5%
Long Term Debt*: 49.1% floating, 50.9% fixed, avg. interest 6.5% in Rp Billion Maturity Profile * USD loan hedged into IDR 250 1,368 3,055 4,760 4,594 2,410 1,007 7,381 4,574 1,500 2,902 1,335 1,506 9,000 744 7,500 6,000 USD 138mn 4,500 2,761 6,637 USD 40.0mn* 3,000 USD 34.8mn* 4,594 4,574 1,593 136
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
PT Sarana Menara Nusantara — Q1 2023 Earnings Presentation on 6ix