PT. CENTRATAMA TELEKOMUNIKASI INDONESIA, TBK Company ... · 3I r 9 2,008.5 1,336.7 671.8 Debt Cash Net Debt Net Debt, Rp B 2.2x Net Debt to LQA EBITDA 73.6 100.3 26.7 Fixed Assets

PT. CENTRATAMA TELEKOMUNIKASI INDONESIA, TBKCompany PresentationApril 2019 (1Q19 Update)

Company Presentation | April 2019PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK 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 notbeen independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of theinformation presented or contained in these materials. Neither the Company nor any of its affiliates, advisers or representatives accepts any liability whatsoever for any lossarising from any information presented or contained in these materials. It is your responsibility to evaluate the accuracy, completeness and usefulness of any information in thismaterials 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 ordistributed, 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 withoutnotice 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 theCompany 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 wordssuch as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” “outlook” or words of similar meaning. Such forward-looking statements are not guarantees of futureperformance 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. TheCompany 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 inany 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 decisionwhatsoever.


GENERAL OVERVIEW

Group Structure Brief Profile

PT. Centratama Telekomunikasi Indonesia Tbk

PT. Network Quality Indonesia

PT. Mac Sarana Djaya

PT. Fastel SaranaIndonesia

PT. CentratamaMenara Indonesia

• PT. Centratama Telekomunikasi, Tbk, and itssubsidiaries, (“the Group”, “Company”) is anindependent telecommunication infrastructurecompany, providing integrated services for towerand in-building DAS1 as well as internet

• The Company managed 1,801 towers with 1.43xtenancy ratio and 839 in-building DAS sites with1.83x tenancy ratio as of March 2019

• During 1Q19, the Company booked Rp 198.4Brevenue, Rp 149.4B EBITDA (75.3% EBITDA margin),and Rp 8.7B net profit

Key Milestones

• Acquired PT. Centratama Menara Indonesia, theoperating company for telecommunication towerbusiness, in 2013

• Acquired PT. Network Quality Indonesia (“NQI”)and its subsidiaries in 2017:

o PT. Mac Sarana Djaya - the in-building DASbusiness operating company

o PT. Fastel Sarana Indonesia - the internetservices provider and other value addedbusinesses operating company

Revenue by Business Segments

Tower Lease44%

In-building DAS Lease

54%

Internet2%

Note: 1 Distributed Antenna System

99.99%

99.99%

99.99%

99.99%

1


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

c.60%Independent in-building

DAS Market share

2.2xNet Debt toLQA EBITDA

50%CAGR in # ofTower Tenants

1

(1 Management estimate)

1010101101101010101101101010001111010101101010010101001001

DigitalSignage

01010101010110001010101010111000111011010010101010001000100100010100000

5

Section 1Industry Overview


DEMAND FOR MOBILE NETWORK INFRASTRUCTURES

Surging data usage to drive demand for quality telco infrastructure

Growth in the mobile data consumption is expected to persist…

4.4

28.3

2017 2022F

Indonesia’s Annual Mobile Trafficin Exabytes (EB)

1.1

5.9

2017 2022F

Average Mobile Connection Trafficin Gigabytes (GB)/month

…yet the network infrastructures is still relatively less developed

3.4 3.6 5.9 6.1 6.1 7.1 7.6 9.3 14.3

India IndonesiaS.Korea Australia USA MalaysiaThailand Vietnam China

Average: 8.1 Towers

Number of Towers

/10,000 persons, 3Q18

4G Adoption (2017)% of Total Connections

10% 21% 26% 47% 71% 75% 82%

Philippines India Indonesia Malaysia China Japan S. Korea

Source: GSM Association (GSMA)Source: Cisco VNI

Source: Tower Exchange, EIU, DBS, in-house calculation & estimates


INTRODUCTION TO IN-BUILDING DISTRIBUTED ANTENNA SYSTEM (DAS)

• 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

Indoor Antennas

Repeater Antenna Pole

Operator BTS

Site Acquisition – MAC:▪ Pays upfront lease▪ Secures long term exclusivity▪ Exclusivity over vast scope of

services related to telecommunication and media

MAC provides:▪ Design▪ Equipment sourcing▪ Project management expertise▪ Site maintenance

DAS Infrastructure Rental :▪ Secures long term revenue with

operators▪ Fixed rent bases

Tenant Placement

Site Acquisition

DAS Installation

Coaxial Cables

What is In-building DAS? Typical Business Model


417

420

289

206

1,332

2019F 2020F 2021F 2022F Onwards Total Pipeline

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

Note: 1 Defined as buildings with a minimum 10 storeys or 15,000m2 floor area; Source: BCI Asia

~70%~90%

Voice Data

Voice and Data Demand% of Usage Indoor

Source: Indonesian Small Cell Industry Alliance

Strong construction pipeline of addressable buildings across Indonesia

Number of Addressable1 Buildings | by year of construction completion

45%

26%

8%

6%

Strong Signal

Affordable Pricing

Saving

Plenty of Bonuses

Source: APJII

Reason of using particular mobile internet operator


17,437 1

15,032 1

6,070 2

1,773 11,297 3

3,800 4

32,1254

8,600 4

4,000 4

c. 5,300 5

Protelindo TowerBersama

STP Centratama Bali-tower

Others Telkom,Telkomsel,

Mitratel, PST

Indosat XL Others

COMPETITIVE LANDSCAPE: TOWER

Numberof Towers

#4

Independent Tower Providers (ITPs) MNOs6 & MNOs Affiliated

Notes: 1 As of end of 4Q18 based on the respective company filing, 2 As of end of 3Q18 based on the respective company filing, 3 As of end of 1Q18 based on the respective company filing, 4 Estimated tower count based on TowerXchange 2017, 5 Management estimate, 6 Mobile Network Operators


MACc.60%

Othersc.40%

MNOsc.70%

Independent DAS Playersc.30%

COMPETITIVE LANDSCAPE: IN-BUILDING DAS

c.70% of Indonesia’s DAS market is owned by MNOs1 MAC dominates the independent in-building DAS market

Notes: 1 Mobile Network Operators and the affiliated companies; Source: Management estimates of current landscape

Estimated c.1,500 independent in-building DAS installedEstimated c.4,900 in-building DAS installed

11

Section 2Company Overview


INTEGRATED AND INDEPENDENT TELECO INFRASTRUCTURE COMPANY

Note: 1 management estimate

Telecommunication Tower

▪ 4th largest1 independent toweroperator in Indonesia

▪ Owns/operates 1,801 towersnationwide with 1.43x tenancy ratioas of March 2019

▪ Stellar growth track record: 50%tower tenants portfolio CAGR from2013 to March 2019

In-Building DAS

▪ Largest independent operator of in-building distributed antenna system(“DAS”) with c.60% share1

▪ Operates 839 sites across Indonesiawith tenancy ratio of 1.83x as ofMarch 2019

Value Added Services

▪ Product offerings utilizing the group’srelationships with the buildingmanagements

▪ Internet Service Provider (“ISP”)license

▪ Triple play capability

▪ Serving 1,416 corporate and retailISP customers as of March 2019

Note: 1 management estimate

DAS (Indoor site)

Operators’ BTS

Microcell (Outdoor Site)

1

1

2

Bundled Indoor and Outdoor

BTS Capex sharing for operator

1

2


NATIONAL SCALE FOOTPRINTSTower Sites by Geographical Location as of March 2019

Jabodetabek5.4%

Java (excl. Jabodetabek)

45.5%

Bali & Nusa Tenggara

5.8%

Sumatra29.0%

Kalimantan8.1%

Sulawesi6.2%

Jabodetabek44.6%

Java (excl. Jabodetabek)

27.4%

Sumatra10.0%

Bali & Nusa Tenggara

9.3%

Sulawesi5.7%

Kalimantan3.0%

In-building DAS Sites by Geographical Location as of March 2019

Proven execution track record with national scale footprints

Best Partnerfor B2S Tower

(2017)

Winner Non MLA TPNorth Sumatra Region

(2016)

2nd Runner Up on MLA TP Collo

S. Sumatra (2016)

Best TP Non MLAKalimantan Region

(2016)

Most Interactive(2018)

The Highest Revenue GrowthBali Nusra Region

(2016-2017)


SENIOR MANAGEMENT TEAM

Yuana SusatyoChief Marketing Officer20+ years in sales & marketing for various telecoms products

Adi MulyonoVP, Implementation13+ years in engineering and execution

Michael LoebisVP, Human Capital16+ years in HR

Hartanto KusmantoChief Financial Officer25+ years in Finance

Asep SuhendiVP, iVAS25+ years in Sales & Marketing in Telco Industry

Experienced management team

Raymond YanChief Executive Officer14+ years in telecom industry in

Indonesia


237473 581

810

1,290

1,773 1,801

302

586

765

1,134

1,872

2,4442,576

2013 2014 2015 2016 2017 2018 1Q19

6584

119136 142 142 143

173

152

196

216233

263 261

2013 2014 2015 2016 2017 2018 1Q19

Tenancy Ratio, x Sites

HISTORICAL OPERATING GROWTH

Tenancy Ratio, x

2.64x 1.82x 1.65x 1.84x1.59x

Land Grab Period

InstalledAntennas, ‘000

1.63x

Tower Sites, Tenants, and Tenancy RatioIn-building DAS Installed Antennas, Antenna Lessees, and Tenancy Ratio1

XL-Axis merger impact

1.27x 1.24x 1.32x 1.38x1.40x 1.45x

Note: 1 Based on NQI’s historical numbers

AntennaLessees, ‘000

###Tenants###

Enhanced site selection frameworkand elimination of legacy contracts

1.43x 1.83x


563

648 708

801

194 198

2015PF 2016PF 2017 2018 1Q18 1Q19

ROBUST FINANCIAL PERFORMANCE

Note: 1 The proforma figures include MAC and Fastel’s historical figures

Revenue(Rp B)

EBITDA(Rp B)

1 1 1 1

324

467

526 563

149 149

2015PF 2016PF 2017 2018 1Q18 1Q19

17

Section 31Q19 Performance Update


1Q19 PERFORMANCE: HIGHLIGHTS

TOWERS1,801 sites

2,576 tenants(28.3% YoY, 1.43x

Tenancy Ratio)

IN-BUILDINGDAS

143k antennas261k lessees

(8.0% YoY, 1.83xTenancy Ratio)

1Q19

Rp B YoY

Revenue 198.4 2.5%

EBITDA 149.4 0.6%

Net Profit 8.7 35.5B

P&L YoY Revenue Increaseby Customer, Rp B

19

3.6

19

8.4

19.56.5 4.9 4.2 (30.2)

1Q

18

Telko

msel

XL

Ind

osat

H3

I

Oth

er

1Q

19

2,008.5

1,336.7

671.8

Debt Cash NetDebt

Net Debt,Rp B

2.2xNet Debt toLQA EBITDA

73.6100.3

26.7

FixedAssets

Site LeasePrepayment

Total

CapExPayment, Rp B

182.0 198.4

11.6

1Q18 1Q19

Discontinuation ofthe Revenues from

Internux & First Media

Inux& FM

Revenues, Rp B


1Q19 PERFORMANCE: TENANTS

# of Tower Tenants (% of total) # of In-Building DAS Antenna Lessees ‘000 (% of total)

25.5%

34.4%

27.7%

28.5%21.4%

17.5%

9.8%

11.5%

15.6%

8.1%

2,008

2,576

1Q18 1Q19

Others

Indosat

Telkomsel

H3I

XL

1.49xTenancyRatio

1.43x

36.2%39.7%

22.3%

21.6%

20.6%

23.0%

15.0%

14.8%5.9%

0.8%

241

261

1Q18 1Q19

Others

Indosat

Telkomsel

H3I

XL

1.63xTenancyRatio

1.84x


1Q19 PERFORMANCE: REVENUES

Revenue by Business Line, Rp B (%) Revenue by Customer, Rp B(%)

62.3%54.2%

35,4%44.2%

2.3% 1.6%

193.6 198.4

1Q18 1Q19

Internet & Others

Tower

In Building DAS 29.2% 30.6%

28.0%

30.6%

11.6%

21.2%10.8%

13.0%20.4%

4.7%193.6

198.4

1Q18 1Q19

Other

Indosat

Telkomsel

XL

H3I


1Q19 PERFORMANCE: FINANCIALS

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 Last Quarter Annualized

Highlights:

- The recognition of the revenues from Internux (Inux) & First Media (FM) were being discontinued during 2H18. If the 1Q18 revenues from Inux and FM are carved out, the 1Q19 revenue implies 9.0% YoY growth.

- The company started adopting new fixed assets accounting in 2Q18 (30 years useful life for towers and 15 years useful life for in-building DAS)

1

2

1

2

P&L, in Rp B 1Q18 1Q19 YoY CASFHLOWS, in Rp B 1Q18 1Q19 YoY

Revenue 193.6 198.4 2.5% Cash Provided by Operation 19.4 67.3 247.0%

Cost of Revenue (Ex. D&A) (13.5) (12.9) -4.5% Receipt of Interest 1.6 3.7 130.9%

Gross Profit 180.1 185.5 3.0% Income Tax (2.9) (10.6) 266.1%

% of Revenue 93.0% 93.5% +0.5pps Cashflow from Operations 18.1 60.5 233.5%

Opex (Ex. D&A) (31.6) (36.1) 14.1% Site Lease Prepayment (47.9) (26.7) -44.2%

EBITDA 148.5 149.4 0.6% Acquisition of PP&E (214.4) (73.6) -65.7%

% of Revenue 76.7% 75.3% -1.4pps Other 3.5 (5.1) -247.1%

D&A (135.9) (80.6) -40.7% Cashflow from Investments (258.8) (105.4) -59.3%

EBIT 12.6 68.8 5625.9% Debt Drawdown/(Repayment) 262.7 306.3 16.6%

% of Revenue 6.5% 34.7% +28.2pps Interest Expense (16.0) (43.8) 174.3%

Other Income/(Expense) (10.3) (0.7) -93.1% Casflow from Financing 246.7 262.4 6.4%

Interest Income/(Expense) (28.0) (51.0) 82.4% TOTAL CASHFLOW 6.0 217.5 3511.6%

EBITDA/Interest, x 5.3x 2.9x -44.8%

Pre-Tax Income (25.7) 17.1 +42.8B BALANCE SHEET, in Rp B Mar-18 Mar-19 YoY

% of Revenue -13.3% 8.6% +21.9pps Cash 374.2 671.8 79.5%

Tax (1.1) (8.4) -730.0% PP&E 2,336.3 2,664.7 14.1%

Net Profit (26.8) 8.7 +35.5B Other Assets 1,975.6 2,131.2 7.9%

% of Revenue -13.9% 4.4% +18.2pps Total Asset 4,686.2 5,467.6 16.7%

Debt1 1,065.8 2,008.5 88.4%

Net Debt / (Cash) 691.6 1,336.7 93.3%

Net Debt to LQA 2 EBITDA, x 1.2x 2.2x 92.0%

Other Liabilities 675.1 421.1 -37.6%

Total Liabilities 1,741.0 2,429.6 39.6%

Total Equity 2,945.2 3,038.0 3.2%

22

Contact UsInvestor RelationsPT. Centratama Telekomunikasi Indonesia Tbk

[email protected]

+62 21 2952 9404

TCC Batavia Tower One 19th FloorJl. KH Mas Mansyur Kav. 126, Jakarta Pusat 10220

Thank YouEnd of Presentation

mailto:[email protected]

Documents

PT. CENTRATAMA TELEKOMUNIKASI INDONESIA, TBK Company ... · 3I r 9 2,008.5 1,336.7 671.8 Debt Cash Net Debt Net Debt, Rp B 2.2x Net Debt to LQA EBITDA 73.6 100.3 26.7 Fixed Assets