Investor Presentation PT Solusi Tunas Pratama Tbk M ay 2020 - PowerPoint PPT Presentation

Investor Presentation PT Solusi Tunas Pratama Tbk M ay 2020

Disclaimer These materials have been prepared by PT Solusi Tunas Pratama, Tbk (“STP” or the “Company”) and have not been independently verified. These materials are highly confidential and are being given solely for your information and for your use. By accepting these materials you agree that you will, and will cause your directors, officers, employees, agents and representatives to keep these materials strictly confidential and that these materials may not be (i) copied, photocopied or duplicated in any form by any means in whole or in part, or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose. 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, financial and legal advisers or their respective directors, officers, employees and representatives accepts any liability whatsoever for any loss arising from any information presented or contained in these materials. The information presented or contained in these materials is as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. The Company has no obligation to update the materials. 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. 1

Table of Content Company Overview 3 Potential Business Opportunities 9 Growth Strategy 14 Appendix 18 2

Company Overview 3

STP at a glance: Indonesia’s premier wireless data network infrastructure provider 2019 6,384 towers 3,382 km 1 38 indoor DAS ~89% of EBITDA margin fiber optic sites with revenue from 11,154 tenants of 83.6% network 68 tenants the top-4 telcos 2 1,75x tenancy ratio Towers Tenants Revenue (IDR Bn) 11,154 6,384 1,767 > 5.7x > 6.2x > 7.2x increase in towers increase in revenues increase in tenants 1,121 286 1,539 2010 2019 2010 2019 2010 2019 Notes: 1 Including fiber optic networks that STP operates under Icon+ partnership 2 Revenue from Telkom Group includes Telkomsel, Mitratel, and resellers with Telkomsel as the end customer 4

Strong portfolio of tower and fiber assets covering major prime locations Tower and DAS Fiber 3,382 km Fiber 2 Others 13% Medan 102 63% Batam – Singapore 84 Sumatra 6,384 Towers 24% of towers in Java 1 Kalimantan (13% in Jakarta) 38 Distributed Java Sumatra 63% Antenna Systems Bandung Jatim – Kalsel 610 Banten – Lampung 483 71 Java Surabaya 68 Greater Jakarta 1,964 (2) Land fiber asset Submarines fiber asset  Prime tower and fiber assets portfolio to support STP’s comprehensive solutions offering , including an expanding fiber optics network that allows the Company to capture surging demand driven by aggressive urban 4G / LTE rollout by mobile telecommunication operators  Potential new business opportunities for providing wholesale fiber connection to broadband and pay TV operators Notes: 1 Java includes both Java and Bali Island as well as Greater Jakarta; 2 Including fiber optic networks that STP operates under Icon+ partnership 5

STP has been achieving robust growth of both revenue and EBITDA from core customers 1 ~2% revenue and EBITDA CAGR during 2015 – 2019 from core customers (i.e. excluding Flexi and Internux/First Media) Reported Revenue and EBITDA Adjusted Revenue and EBITDA 1 IDR Bn IDR Bn 2,000 2,000 CAGR: -0.2% 1,800 1,800 CAGR: -0.7% 1,600 1,600 1,786 1,767 1,767 1,400 1,400 1,577 1,534 1,478 1,478 1,325 1,200 1,200 2015 2019 2015 2019 2015 2019 2015 2019 Revenue EBITDA Note: 1 Adjusted to exclude Flexi and Internux/First Media, which ceased operations in 2016 and 2018 respectively to present a comparable basis for 2019 6

Entrenched relationship with prime customers, underpinning significant high quality backlog ~89% of revenue from top 4 operators… … complemented by longer tenancy expiry schedule Tenancies expiry schedule as of Dec 31, 2019 Others 0 – 2 years 11.2% 8.0% 7.7% 7+ years 25.9% Weighted 36.7% 2019 average 3 – 4 years 16.4% Revenue 1 life of 21.5% 5.1 years 5 – 6 years 49.7% 22.9%  Key customers are Indonesia’s four largest and most creditworthy mobile telecommunication operators contributing ~89% of revenue 1  STP has been successful in renewing its tenancies, which results in a longer tenancy expiry schedule  Our lease rates are fully reflective of current market rates and c. 98% of our leases are IDR denominated (remaining 2% USD denominated) Note: 1 Revenue from Telkom Group includes Telkomsel, Mitratel, and resellers with Telkomsel as the end customer 7

Well-utilized balance sheet with continuous deleveraging and prudent hedging program 2019 net debt build-up Prudent risk management policy IDR Bn  FX hedges in place to mitigate volatility in currency and 4.70x (0.13x) (0.23x) 4.33x interest rate 7,258 6,691 (206) (362)  54% of all outstanding debt is USD denominated which is 100% hedged against FX risk for principal and interest payments Unhedged FX Hedges Cash and Cash Net Debt Gross Debt Equivalents # Multiple of LQA EBITDA Deleveraging profile Debt maturity profile (as % of total outstanding) Net debt / LQA EBITDA 1 (x) 79.1% 5.5x 4.3x 10.5% 5.2% 5.2% 2014 2019 2020 2021 2022 2023 Note: 1 Net debt refers to gross debt stated at hedge rate less cash 8

Potential Business Opportunities 9

Indonesia has one of the most attractive tower markets globally… Indonesia Tower Market Global Tower Market Benchmarking  High barriers to entry including local regulations Non Non Independent Independent Independent 2 Independent Independent / Captive / Captive Business model  Significant growth opportunity 800 – 1,000 2,500 – 3,000 1,400 – 2,600 600 – 800 400 – 600 Lease rate per tenant per month (USD) 1  Long term revenues Ranges from Ranges from No discount No discount No discount with minimal churn 5% – 20% 30% – 45% and default risk Multi-tenancy discount 80% – 86% 55% – 70% 40% – 50% 40% – 45% 3 55% – 60%  High EBITDA EBITDA margins (%) margins and free cash flow conversion No No No Yes Yes Tower + Power  Strong operating leverage 55 - 85 200 – 250 75 – 90 35 – 50 35 – 50 New tower capex (USD ‘000 per tower) 1 Source: Industry report Notes: 1 In local currency, and stated in approximate USD for comparison purposes 10 2 Independent tower business model in Western Europe, with the exception of Inwit in Italy 3 Indian average EBITDA margins relatively lower as revenue includes pass-through items, such as fuel cost