PT. CENTRATAMA TELEKOMUNIKASI INDONESIA, TBK Company Presentation August 2018

Transcription

1 PT. CENTRATAMA TELEKOMUNIKASI INDONESIA, TBK Company Presentation August 2018

2 DISCLAIMER These materials and information have been prepared by PT Centratama Telekomunikasi Indonesia, Tbk. (the Company ) as is and without warranties of any kind 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 presented or contained in these materials. Neither the Company nor any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss arising from any information presented or contained in these materials. It is your responsibility to evaluate the accuracy, completeness and usefulness of any information in this materials or other information provided. Unless otherwise noted, these materials are the exclusive property of the Company or used with permission and may not be copied or distributed, in whole or in part, without the express written consent of the Company. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as expects, plan, will, estimates, projects, intends, outlook or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation to buy or subscribe for any securities of the Company in any jurisdiction, nor should these materials or any part of them form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. 2

3 GENERAL OVERVIEW 99.99% PT. Centratama Menara Indonesia Internet 1% Note: 1 Distributed antenna system Group Structure PT. Centratama Telekomunikasi Indonesia Tbk Revenue by Business Segments Tower Lease 37% In-building 1 DAS Lease 62% 99.99% PT. Network Quality Indonesia 99.99% PT. Mac Sarana Djaya 99.99% PT. Fastel Sarana Indonesia Brief Profile PT. Centratama Telekomunikasi, Tbk, and its subsidiaries, ( the Group, Company ) is an independent telecommunication infrastructure company, providing integrated services for tower and in-building DAS 1 as well as internet The Company managed 1,641 towers with 1.43x tenancy ratio and 841 in-building DAS sites with 1.79x tenancy ratio as of June 2018 During 1H18, the Company booked Rp 400.0B revenue, Rp 312.8B EBITDA (78.2% EBITDA margin), and Rp 68.6B net profit Key Milestones Acquired PT. Centratama Menara Indonesia, the operating company for telecommunication tower business, in 2013 Acquired PT. Network Quality Indonesia ( NQI ) and its subsidiaries in 2017: o o PT. Mac Sarana Djaya - the in-building DAS business operating company PT. Fastel Sarana Indonesia - the internet services provider and other value added businesses 3

4 OUR CORE STRENGTHS An integrated telco infrastructure company Fastest growing tower company in the market The largest independent in-building DAS provider in Indonesia Proven execution track record with national scale footprints Robust balance sheet position Untapped growth potential from vast range of new product offerings 4

5 Section 1 Industry Overview 5

6 DEMAND FOR MOBILE NETWORK INFRASTRUCTURES Growth in the mobile data consumption is expected to persist yet the network infrastructures is still relatively less developed Indonesia s Annual Mobile Traffic in Exabytes (EB) Number of Towers /10,000 persons, 4Q Average: 7.9 Towers F Average Mobile Connection Traffic in Gigabytes (GB)/month India IndonesiaS. Korea Australia USA Malaysia Vietnam Thailand China Source: Tower Exchange, EIU, in-house calculation & estimates 4G Adoption (2017) % of Total Connections 3.8 Source: Cisco VNI F 10% 21% 26% 47% 71% 75% 82% Philippines India Indonesia Malaysia China Japan S. Korea Source: GSM Association (GSMA) Surging data usage to drive demand for quality telco infrastructure 6

7 INTRODUCTION TO IN-BUILDING DISTRIBUTED ANTENNA SYSTEM (DAS) What is In-building DAS? Typical Business Model Indoor Antennas Repeater Antenna Pole Site Acquisition Site Acquisition MAC: Pays upfront lease Secures long term exclusivity Exclusivity over vast scope of services related to telecommunication and media Coaxial Cables DAS Installation MAC provides: Design Equipment sourcing Project management expertise Site maintenance Operator BTS Outdoor towers cellular signal have limited indoor coverage DAS extends the telco coverage into buildings Perfect solution for urban area coverage with dense high rise building population Tenant Placement DAS Infrastructure Rental : Secures long term revenue with operators Fixed rent bases 7

8 In-Building DAS GROWTH DRIVERS Network coverage remains the most important factor to mobile subscribers in a 2016 survey especially given that 70%-90% of voice and data demand is generated by mobile subscribers indoor usage Network Coverage 61% Price 52% Longtime User 26% Unlimited Data Plan 23% Corporate Discount Available 19% Wanted a Non-Contract Plan 18% Wider Phone Selection 17% Good Customer Service 14% International Coverage 12% Source: Computerworld Mobile Data Service Survey 2016 Strong construction pipeline of addressable buildings across Indonesia ~70% Voice Source: Indonesian Small Cell Industry Alliance Voice and Data Demand % of Usage Indoor ~90% Data Number of Addressable 1 Buildings by year of construction completion , E 2019F 2020F 2021F Onwards Total Pipeline Note: 1 Defined as buildings with a minimum 10 storeys or 15,000m 2 floor area; Source: BCI Asia 8

9 COMPETITIVE LANDSCAPE: TOWER Highly Fragmented Market MNOs are adopting asset light model Number of Towers 16,370 5 Independent Tower Providers (ITPs) MNOs 7 & MNOs Affiliated % of Towers owned by MNOs vs ITPs 6 #4 31, % ITPs MNOs 13, % 8, ,273 1 c.5, % 3, , % 1, , , Protelindo Tower STP Centratama Balitowedasokka Persa- Gihon Others Telkom, Indosat XL Others KIN Bersama Telkomsel, Tama Mitratel Notes: 1 As of end of 1Q18 based on the respective company filing, 2 Estimated tower count based on TowerXchange 2017, 3 As of end of 2017 based on the company filing, 4 Management estimate, 5 Protelindo number of towers as of 1Q18 based on company filing +1,659 (KIN s number of towers as on Protelindo s 2Q18 result presentation), 6 TBG Global Unsecured Note Offering Circular, DBS Equity Research, in-house calculations, 7 Mobile Network Operators 9

10 COMPETITIVE LANDSCAPE: In-building DAS c.70% of Indonesia s DAS market is owned by MNOs 1 Estimated c.4,900 in-building DAS installed MAC dominates the independent in-building DAS market Estimated c.1,500 independent in-building DAS installed MNOs c.70% Independent DAS Players c.30% MAC c.60% Others c.40% Notes: 1 Mobile Network Operators and the affiliated companies; Source: Management estimates of current landscape 10

11 Section 2 Company Overview 11

12 INTEGRATED AND INDEPENDENT TELECO INFRASTRUCTURE COMPANY Telecommunication Tower 4 th largest 1 independent tower operator in Indonesia Owns/operates 1,641 towers nationwide with 1.43x tenancy ratio as of June 2018 Stellar growth track record: 54% tower portfolio CAGR from December 2013 to June DAS (Indoor site) Largest independent operator of inbuilding distributed antenna system ( DAS ) with c.60% share 1 Operates 841 sites across Indonesia with tenancy ratio of 1.79x as of June 2018 In-Building Coverage Value Added Services Product offerings utilizing the group s relationships with the building managements Internet Service Provider ( ISP ) license Triple Play capability Serving 1,321 corporate and retail ISP customers as of June Microcell (Outdoor Site) Bundled Indoor and Outdoor BTS Capex sharing for operator 2 Operators BTS Note: 1 management estimate 12

13 WELL DIVERSIFIED PORTFOLIO Revenue by MNO in 1H18 (1H17) Tower Sites by Geographical Location as of 1H18 (1H17) in % (Rp B) Others 11.7% (11.5%) Kalimantan 5.2% (5.3%) Sulawesi 5.3% (1.5%) Jabodetabek 6.8% (8.8%) Indosat 11.6% (12.2%) Telkomsel 22.4% (17.2%) Hutchison 27.3% (32.6%) XL 27.0% (26.4%) Sumatra 30.2% (21.6%) Java (excl. Jabodetabek) 46.5% (57.5%) Bali & Nusa Tenggara 5.9% (4.7%) In-building DAS Sites by Geographical Location 1H18 (1H17) Bali & Nusa Tenggara 9.4% (9.4%) Sumatra 10.2% (10.6%) Sulawesi 5.6% (5.6%) Java (excl. Jabodetabek) 27.3% (26.1%) Kalimantan 2.9% (2.7%) Jabodetabek 44.6% (45.7%) In-building DAS Sites by Building Type 1H18 (1H17) Airport 1.9% (1.9%) University 5.8% (5.5%) Hospital 9.5% (9.6%) Office 12.8% (11.9%) Others 6.5% (6.5%) Hotel & Resort 26.0% (26.7%) Apartment Mall 22.7% (23.6%) 14.6% (14.3%) 13

14 SENIOR MANAGEMENT TEAM Raymond Yan Chief Executive Officer 14+ years in telecom industry in Indonesia Hartanto Kusmanto Chief Financial Officer 25+ years in Finance Yuana Susatyo Chief Marketing Officer 20+ years in sales & marketing for various telecoms products Adi Mulyono VP, Implementation 13+ years in engineering and execution Bambang Noegroho VP, Estate Management 15+ years in project management and operations Michael Loebis VP, Human Capital 16+ years in HR Experienced management team 14

15 INCREASING ORDERS FROM BIG 4 OPERATORS Increasing orders from big 4 operators 1 supported by the service quality Number of Orders Received from Big 4 Operator Tenancies 1, Note: 1 Big 4 Operators refer to Telkomsel, XL, Indosat and H3I Most Interactive (2018) The Highest Revenue Growth Bali Nusra Region ( ) Best Partner for B2S Tower (2017) Best TP Non MLA Kalimantan Region (2016) Winner Non MLA TP North Sumatra Region (2016) 2 nd Runner Up on MLA TP Collo S. Sumatra (2016) 15

16 Section 3 Performance Update 16

17 ROBUST FINANCIAL PERFORMANCE Revenue (Rp B) EBITDA (Rp B) PF 2016PF H17 1H EBITDA Margin (%) Improving margin due to gain in the economies of scale % 72% 74% 74% 78% PF 2016PF H17 1H PF 2016PF H17 1H18 Note: 1 The proforma figures include MAC and Fastel s historical figures 17

18 AMPLE DEBT HEADROOM TO SUPPORT EXPANSION (5.1)x (0.2)x 0.8x 1.5x 1 Unutilized Loan Facility 2 1, (14) 424 (208) Jun-18 Net Debt 3 / (Cash), Rp B Net Debt / EBITDA Note: 1 Based on annualized 1H18 EBITDA, 2 Based on total facility amount of US$ 195M and FX rate of Rp 14,404/US$, 3 Based on debt figures after adding back the unamortized transaction costs 18

19 NUMBER OF SITES AND TENANCY RATIOS Tower Sites and Tenancy Ratio In-building DAS Sites and Tenancy Ratio x 1.24x 1.32x 1.40x 1.45x 1.43x 2.64x 1.82x 1.65x 1.59x 1.63x 1.79x XL-Axis merger impact Land Grab Period Enhanced site selection framework and elimination of legacy contracts 1,641 1, H18 Tower Sites Tower Tenancy Ratio, x Note: 1 Based on NQI s historical numbers H18 DAS Sites DAS Tenancy Ratio, x 19

20 FINANCIAL & OPERATING METRICS SUMMARY P&L, in Rp B H17 1H18 Operating Metrics Dec-15 Dec-16 Dec-17 Jun-17 Jun-18 Revenue Tower YoY Growth 34.0% 403.3% 18.7% # of Sites , ,641 Cost of Revenue (10.2) (15.2) (21.4) (17.9) (24.4) YoY Growth 39.4% 59.3% 86.5% Gross Profit Tenancy Ratio, x 1.32x 1.40x 1.45x 1.46x 1.43x % of Revenue 90.2% 89.2% 97.0% 94.7% 93.9% YoY Growth 32.4% 447.2% 17.7% DAS (Under NQI) Opex (53.6) (45.6) (161.8) (71.1) (62.9) # of Sites EBITDA YoY Growth 9.5% -2.5% -1.8% % of Revenue 39.2% 56.8% 74.1% 73.6% 78.2% Tenancy Ratio, x 1.65x 1.59x 1.63x 1.44x 1.79x YoY Growth 94.1% 556.6% 26.1% Net Profit (53.4) (29.8) (119.0) (39.9) 68.6 % of Revenue -50.9% -21.2% -16.8% -11.8% 17.2% YoY Growth -44.2% 299.3% % BS, in Rp B Dec-15 Dec-16 Dec-17 Jun-17 Jun-18 Total Asset 1, , , , ,082.4 Net Debt / (Cash) (208.2) (14.1) Cash Debt ,453.4 Net Debt to EBITDA, x 2 (5.1)x (0.2)x 0.8x 0.3x 1.5x Note: 1 Debt figures after adding back the unamortized transaction cost, the Company s current US$ debt is hedged at the FX rate of Rp 13,510/US$, 2 Jun-17 and Jun-18 ratios are based on annualized first half EBITDA figures 20

21 END OF PRESENTATION Thank you 21