April 2019 DISCLAIMER These materials and information have been - PowerPoint PPT Presentation

PT. CENTRATAMA TELEKOMUNIKASI INDONESIA, TBK Company Presentation April 2019

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. PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 2

GENERAL OVERVIEW Group Structure Brief Profile • PT. Centratama Telekomunikasi, Tbk, and its PT. Centratama Telekomunikasi subsidiaries, (“the Group”, “Company”) is an Indonesia Tbk independent telecommunication infrastructure company, providing integrated services for tower 99.99% 99.99% and in-building DAS 1 as well as internet PT. Centratama PT. Network Quality Menara Indonesia • The Company managed 1,773 towers with 1.38x Indonesia tenancy ratio and 839 in-building DAS sites with 99.99% 1.84x tenancy ratio as of December 2018 PT. Mac Sarana Djaya • During 2018, the Company booked Rp 801.2B 99.99% revenue, Rp 562.5B EBITDA (70.2% EBITDA margin), PT. Fastel Sarana and Rp 35.6B net profit Indonesia Revenue by Business Segments Key Milestones • Acquired PT. Centratama Menara Indonesia, the operating company for telecommunication tower Tower business, in 2013 Lease 39% • Acquired PT. Network Quality Indonesia (“NQI”) Internet and its subsidiaries in 2017: 2% o PT. Mac Sarana Djaya - the in-building DAS In-building business operating company 1 DAS Lease 59% o PT. Fastel Sarana Indonesia - the internet services provider and other value added businesses Note: 1 Distributed Antenna System PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 3

OUR CORE STRENGTHS An integrated telco infrastructure company 52% Untapped growth Fastest growing potential from tower company in vast range of new the market CAGR in # of 10101011011010101011 product offerings 0110101000111101010 1101010010101001001 Digital tal Tower Tenants Signa nage 0101010101011000101 0101010111000111011 01001010101000100 0100100010100000 The largest independent in- Robust balance building DAS sheet position provider in Indonesia c. 60% 1 2.3x Proven execution track record with national scale footprints Independent in-building Net Debt to DAS Market share EBITDA 2018 ( 1 Management estimate) PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 4

Section 1 Industry Overview 5

DEMAND FOR MOBILE NETWORK INFRASTRUCTURES Growth in the mobile data consumption is expected to persist… …yet the network infrastructures is still relatively less developed Number of Towers Indonesia’s Annual Mobile Traffic /10,000 persons , 3Q18 in Exabytes (EB) 28.3 Average: 8.1 Towers 4.4 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 2017 2022F Source: Tower Exchange, EIU, DBS, in-house calculation & estimates Average Mobile Connection Traffic 4G Adoption (2017) in Gigabytes (GB)/month % of Total Connections 5.9 1.1 10% 21% 26% 47% 71% 75% 82% Philippines India Indonesia Malaysia China Japan S. Korea 2017 2022F Source: Cisco VNI Source: GSM Association (GSMA) Surging data usage to drive demand for quality telco infrastructure PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 6

INTRODUCTION TO IN-BUILDING DISTRIBUTED ANTENNA SYSTEM (DAS) Typical Business Model What is In-building DAS? Site Acquisition – MAC: Pays upfront lease ▪ Repeater Site Secures long term exclusivity ▪ Antenna Pole Acquisition Exclusivity over vast scope of ▪ services related to telecommunication and media Indoor Antennas Coaxial Cables MAC provides: Design ▪ DAS Equipment sourcing ▪ Installation Project management expertise ▪ Site maintenance ▪ Operator BTS DAS Infrastructure Rental : • Outdoor towers cellular signal have limited indoor Secures long term revenue with Tenant ▪ coverage Placement operators • DAS “extends” the telco coverage into buildings Fixed rent bases ▪ • Perfect solution for urban area coverage with dense high rise building population PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 7

IN-BUILDING DAS GROWTH DRIVERS Network coverage remains the most important factor to … especially given that 70% -90% of voice and data demand is mobile subscribers in a 2016 survey… generated by mobile subscribers’ indoor usage Voice and Data Demand Reason of using particular mobile internet operator % of Usage Indoor Strong Signal 45% Affordable Pricing 26% ~90% ~70% Saving 8% Plenty of Bonuses 6% Voice Data Source: APJII Source: Indonesian Small Cell Industry Alliance Strong construction pipeline of addressable buildings across Indonesia Number of Addressable 1 Buildings | by year of construction completion 206 289 1,332 420 417 2019F 2020F 2021F 2022F Onwards Total Pipeline Note: 1 Defined as buildings with a minimum 10 storeys or 15,000m 2 floor area; Source: BCI Asia PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 8

COMPETITIVE LANDSCAPE: TOWER MNOs 6 & MNOs Affiliated Independent Tower Providers (ITPs) Number of Towers 32,125 4 17,437 1 #4 15,032 1 8,600 4 6,070 2 c. 5,300 5 4,000 4 3,800 4 1,773 1 1,297 3 Protelindo Tower STP Centratama Bali- Others Telkom, Indosat XL Others Bersama tower Telkomsel, Mitratel, PST 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 PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 9

COMPETITIVE LANDSCAPE: IN-BUILDING DAS MAC dominates the independent in-building DAS market c.70% of Indonesia’s DAS market is owned by MNOs 1 Estimated c.4,900 in-building DAS installed Estimated c.1,500 independent in-building DAS installed MAC c.60% Independent DAS MNOs Players c.70% Others c.30% c.40% Notes: 1 Mobile Network Operators and the affiliated companies; Source: Management estimates of current landscape PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 10

Section 2 Company Overview 11

INTEGRATED AND INDEPENDENT TELECO INFRASTRUCTURE COMPANY ▪ 4 th largest 1 independent tower 1 DAS operator in Indonesia (Indoor site) ▪ Owns/operates 1,773 towers nationwide with 1.38x tenancy ratio as of December 2018 ▪ Stellar growth track record: 52% tower tenants portfolio CAGR from Telecommunication 2013 to 2018 Tower ▪ Largest independent operator of in- building distributed antenna system (“DAS”) with c.60% share 1 ▪ Operates 839 sites across Indonesia with tenancy ratio of 1.84x as of December 2018 In-Building Coverage 1 Microcell ▪ Product offerings utilizing the group’s (Outdoor Site) relationships with the building managements ▪ Internet Service Provider (“ISP”) license Operators’ BTS 2 ▪ Triple play capability ▪ Serving 1,383 corporate and retail Bundled Indoor and Outdoor 1 ISP customers as of December 2018 BTS Capex sharing for operator 2 Value Added Services Note: 1 management estimate Note: 1 management estimate PT CENTRATAMA TELEKOMUNIKASI INDONESIA TBK Company Presentation | April 2019 12