PT Sarana Menara Nusantara Tbk · IDX:TOWR
PT Sarana Menara Nusantara Tbk — Investor Presentation (March 2017)
30 slides from PT Sarana Menara Nusantara Tbk's investor presentation, Mar 13, 2017
Slide 1: Protelindo
Protelindo Indonesia's Premier Tower Company Build, Buy, Return... 13 March 2017
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: Country and Sector Overview
Section 1 Country and Sector Overview
Slide 4: Indonesia Macro Economy – Outlook
Indonesia Macro Economy – Outlook Expected to remain favorable over the next five years Forecast of real and nominal GDP Young 25,000 population with 20,000 '15-21 CAGR: 11.3% Solid GDP growth driven by robust direct 59% under investment flows, government spending the age 35 (IDR trillion) 15,000
Slide 5: Indonesia Macro Economy – Key Indicators
Indonesia Macro Economy – Key Indicators An attractive investment environment 1 Market performance The Jakarta Composite Index Indonesian and Asia ex. Japan CPI Inflation Index The JCI Index is trading up in 1Q17 and has increased by 6,000 7.00% 30.7% since its lowest point in 5,386 mid 2015 6.00%
Slide 6: Indonesia Telecom Industry – Outlook
Indonesia Telecom Industry – Outlook Strong growth expected over the next five years Indonesia's average mobile data usage remains Increasing smartphone penetration.. Top 5 Indonesian Wireless Operators by relatively low connections Data usage (MB) per connection per month Smartphone penetration 201
Slide 7: Indonesian Tower Industry – Defining Features
Indonesian Tower Industry – Defining Features One of the most attractive tower industries globally Long term High EBITDA Market leaders revenues with High barriers to Significant margins and free Strong operating have the highest minimal churn entry including growth cash flow leverage ROIC globally
Slide 8: Indonesian Tower Industry – Key Growth Drivers
Indonesian Tower Industry – Key Growth Drivers Potential for organic growth in line with increasing demand for Telco services 1 2 3 Telecom industry coverage growth Telecom industry capacity growth New growth areas Important initiatives identified to encourage ex-Java Surging data demand along with
Slide 9: 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 14,562 towers as at December 2016 35% of total ITCs 14,5291
Slide 10: Protelindo Overview
Section 2 Protelindo Overview
Slide 11: Protelindo at A Glance
Protelindo at A Glance Protelindo is Indonesia’s largest independent provider of tower and network services with a young tower portfolio in strategic locations across Indonesia Indonesia’s largest Strong revenue Solid balance sheet and Founded by former independent tower operator growth of 25.1% YoY
Slide 12: Protelindo's Evolution
Protelindo's Evolution Protelindo has demonstrated a strong track record of both organic and acquisition-led growth 2008 2011 2015 2016 Partnership Formed Achieved Global Investment Michael Gearon led Phased in turn over to Djarum Management Team Grade ratings 1 Ex-American Tower Djarum Ma
Slide 13: Largest Portfolio with Highly Attractive Locations
Largest Portfolio with Highly Attractive Locations A 'difficult to replicate' advantage The #1 independent tower operator in Indonesia with 14,562 towers as of December 2016 Protelindo's tower footprint # of towers % portfolio Key features Well positioned to satisfy Largest independent tower netwo
Slide 14: Protelindo's Strong Indonesian Sponsor
Protelindo's Strong Indonesian Sponsor Backed by the Djarum Group – 100% owned by the Hartono Family 3 One of the largest private conglomerates in Indonesia Djarum Group 3 Market leader for corporate governance in Indonesia Telecommunication Selected other Financial Services Tobacco Towers investmen
Slide 15: Protelindo's Key Differentiators
Protelindo's Key Differentiators Indonesia's Premier Tower Company Text Text Industry leading balance sheet and free Largest independent tower portfolio with 1 cash flow generation capacity 2 highly attractive locations Solid Balance Sheet to support organic and Largest independent tower company
Slide 16: Introducing iForte – Leading Micro-cell Tower Provider in Indonesia
Introducing iForte – Leading Micro-cell Tower Provider in Indonesia Existing platform and scale enables Protelindo to maximize synergies from acquisitions An attractive B2B business with Benefits of Protelindo parentage iForte has experienced strong expansion driven by customer revenue growth post-a
Slide 17: Key Financial Highlights
Section 3 Key Financial Highlights
Slide 18: Long Track Record of Growth and Profitability
Long Track Record of Growth and Profitability Revenue Grew at 25.1% CAGR from 2011 to 2016 (IDR Bn) YoY Growth 37.2% 41.1% 28.4% 8.9% 13.0% 5,053 5,285 4,470 4,106 3,197 2,265 1,651 (1) 2011 2012 2013 2014 2015 2016 LQA 4Q16 EBITDA (2) Grew at 26.0% CAGR from 2011 to 2016 (IDR Bn) Margin 84.0% 83.4%
Slide 19: Strong and Growing Cash Flow Generation Coupled with Attractive ROIC
Strong and Growing Cash Flow Generation Coupled with Attractive ROIC Recurring Free Cash Flow (1) (IDR Bn) 75.5% 74.6% 73.2% 68.9% 70.1% 64.4% 3,941 3,817 61.3% 3,272 2,880 2,204 1,458 1,011 (2) 2011 2012 2013 2014 2015 2016 LQA 4Q16 Recurring FCF % Revenue FY 2016 Return on Invested Capital (3) of
Slide 20: Leading Tower Company Globally
Leading Tower Company Globally Global Tower Company Comparison (1) 10.8% Recurring FCF Yield (2) 9.0% 8.5% 6.8% 6.4% 6.2% 5.7% Indonesia USA USA USA Spain India Indonesia EBITDA Margin 87.3% 60.4% 68.9% 55.7% 43.4% 44.0% 86.9% 4Q'12 – 4Q'16 20.9% 17.0% 15.7% 8.5% NA 11.1% 16.7% EBITDA Growth (3) LQA
Slide 21: Leading Deleveraging and Credit Profile
Leading Deleveraging and Credit Profile XL Tower Acquisition (1) – Quick Deleveraging Post Acquisition Net Debt / EBITDA (x) 2.8 x 1.9 x 1.6 x (2) (3) FY15 FY15 + XL Tower 4Q16 (Dec-15) Acquisition (Dec-16) Indonesia USA USA USA Spain Indonesia Key Credit Metrics (4) Net Debt / LQA EBITDA 1.6x 5.0x
Slide 22: Protelindo's Winning Edge
Protelindo's Winning Edge Well positioned to deliver on growth and returns Strong balance sheet and cash flows… …and what it means One of the Lowest Global Investment leveraged independent Grade ratings from Organic growth Inorganic growth all 3 international rating towerco on a global basis agencie
Slide 23: Summary
Section 4 Summary
Slide 24: Enhancing Shareholder Value - Build, Buy, Return
Enhancing Shareholder Value - Build, Buy, Return Indonesia's Premier Tower Company Fitch believes that the company's current scale and financial strength can comfortably support a combination of organic and inorganic 1 Maintain position as the leading tower growth, and progressive dividends, without
Slide 25: Appendix
Appendix A Appendix
Slide 26: The Sarana Menara Nusantara (SMN) Management Structure
The Sarana Menara Nusantara (“SMN”) Management Structure Individuals ● Tonny Kusnadi, President Commissioner1 SMN ● Ario Wibisono, Commissioner ● John Aristianto Prasetio, Independent Commissioner Board of Commissioners ("BoC") Listed Company ● Ferdinandus Aming Santoso, President Director1 SMN ● Ad
Slide 27: Protelindo's Management Team
Protelindo's Management Team Highly experienced team managing over 800 employees Ferdinandus Aming Adam Gifari Stephen Duffus Weiss Anthony Elam * Santoso * Vice President Director Vice President Director Investor Relations President Director ● From 2015 ● From 2007 ● From 2012 ● Newly appointed ● D
Slide 28: SMN Consolidated Statement of Profit or Loss
SMN Consolidated Statement of Profit or Loss (IDR bn) 2014A 2015A 2016A Revenues 4,106.2 4,469.8 5,053.1 Cost of revenues (238.3) (181.7) (209.5) Depreciation and amortization (338.2) (389.8) (459.3) Gross income 3,529.7 3,898.3 4,384.3 Operating expenses (449.5) (512.4) (435.7) Operating income 3,0
Slide 29: SMN Consolidated Statement of Financial Position
SMN Consolidated Statement of Financial Position As at 31 December (IDR bn) 2014A 2015A 2016A ASSETS Current assets Cash and cash equivalents 2,009.6 2,986.8 2,905.3 Trade receivables 571.9 470.5 351.7 Other receivables 1.0 0.8 1.3 Inventories – 11.1 – Prepaid expenses and advances 40.7 39.7 37.3 Re
Slide 30: Detailed Debt Profile as of FY16
Detailed Debt Profile as of FY16 Payment Schedule Summary (USD MM) (1) Total 96.6 296.6 152.3 81.4 138.4 60.2 150.0 38.0 37.2 138.4 111.6 74.4 73.7 49.2 22.2 7.7 2.7 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2017 2018 2019 2020 2021 2022 2023 2024 1-Yr Bullet (IDR) 3-Yr Bonds (IDR) 3-Yr Amorti
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