PT Link Net Tbk Signing Ceremony 5 September 2017 - event vFINAL FINAL FINAL
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PT Link Net Tbk Signing Ceremony 5 September 2017
Indonesia macro: a massive opportunity
Rising population growth Rapid GDP/capita growth(a)
Population (m) GDP per capita (US$)
~53% of population under 30 years of age
Millennials with “internet lifestyle”
3,598 5,312
GDP (US$bn)
276 1,466
259
932
2016 2021 2016 2021
Increasing disposable incomes(b) Increasing urbanization(c)
Annual household As % of GDP
disposable incomes (US$)
Urban 54%
66%
4,973
+12%
3,770
Rural 46%
34%
2016 2021
2016 2030
Source: 2017 Media Partners Asia unless otherwise stated
a) Source: IMF Data (GDP refers to nominal GDP)
1
b) Source: OECD Data
c) Source: World Bank and IMF
Indonesia fixed broadband and Pay TV are significantly underpenetrated
Fixed broadband penetration rate of key comparable countries
Subscriber (000)
4,372 5,674 3,359 4,580 6,840 7,108 8,969 10,877 3,790 3,959 317,280 407,122 948 955
94.8%
88.5%
2016 penetration 2020 penetration 74.2%
52.3%
45.0%
33.4% 34.4% 38.8%
28.3% 32.3%
14.4% 17.1%
9.1% 10.6%
Indonesia Philippines Thailand Vietnam Malaysia China Singapore
Pay TV penetration rate of key comparable countries
Subscriber (000)
5,750 9,270 2,396 3,999 6,540 7,628 8,562 12,353 2,510 2,952 244,955 355,881 1,062 1,161
85.8%
79.2% 77.9%
2016 penetration 2020 penetration 69.0%
52.4% 52.6%
44.9%
40.3%
30.7% 31.1%
22.5%
17.6%
11.2% 13.4%
Indonesia Philippines Thailand Vietnam Malaysia China Singapore
Source: 2016 Media Partners Asia 2
Link Net at a glance
Targets large and
A leading
fast growing affluent
HSBB(a) provider
segment(c). Large
in Indonesia(b)
subscriber base (~1.1m
with ~1.9m
RGUs) with low and
Homes passed
stable churn
Strong enterprise
Innovation led
portfolio offering
premium product
with certain
offering supporting
governmental and
premium ARPUs
financial institutions
with 97%
including IDX
bundling rate
as customers
Track record of Note: Company data as of 30 June 2017 unless otherwise stated
a) HSBB refers to High Speed Broadband which is a fixed network capable of providing internet speeds of at least 4Mbps
strong growth – 18% Fully-owned(f), b) Source: 2017 Media Partners Asia. Link Net is a leading HSBB provider in Indonesia in terms of subscriber market share as of 30
revenue CAGR(d) technology neutral June 2017 according to Media Partners Asia
c) 7.3m addressable homes – According to, and based on addressable market of Upper 1, Upper 2 and Middle 1 SEC households, as
with 59% EBITDA(e) network defined by, Nielsen (2Q17 definition of SEC classification) – For Greater Jakarta, Greater Surabaya (Includes Malang) and Medan.
Nielsen reports based on number of people aged 10 and above. Addressable homes or households is derived by assuming each
margin along with abundant home or household has 4 people each
with resilient capacity d) Revenue CAGR over FY2014 to FY2016
e) Refers to 2016. EBITDA is a non-GAAP financial measure of the Company’s performance and should not be considered as an
balance sheet alternative to performance measures derived in accordance with IFAS. See slide 38 for more information, including a reconciliation to
profit for the period. EBITDA margin is defined as EBITDA divided by revenue
f) Limited exceptions for certain last mile owned by property developers
3
…and operates in most attractive metropolitan areas
Total addressable HH’s: 7.3m(a)
Medan Total LN homes passed: 1.9m
• Addressable households(a): 380k Total cable length: 24,890km
• Homes passed: ~4k(b)
• Estimated coverage ratio(c): ~1%
Batam
• Roll outs started in June 2017
1
5%
Bandung
•
•
Addressable households(a): 580k
Homes passed: ~97k
1
18%
• Estimated coverage ratio(c): ~17%
Greater Surabaya & Malang
1
77% • Addressable households(a): 1,204k
Homes passed: ~351k
Greater Jakarta •
• Estimated coverage ratio(c): ~29%
• Addressable households(a): 5,157k
• Homes passed: ~1.457m
• Estimated coverage ratio(c): ~28%
Bali
• Focus on hotels
Note: Company data as of 30 June 2017 unless otherwise stated 1 City homes passed / Total homes passed
a) According to, and based on addressable market of Upper 1, Upper 2 and Middle 1 SEC households as defined by, Nielsen (2Q17 definition of SEC classification) – For Greater Jakarta, Greater Surabaya (Includes Malang) and Medan. Nielsen
reports based on number of people aged 10 and above. Addressable homes or households is derived by assuming each home or household has 4 people each
b) Includes homes passed for Batam, where roll outs started in June 2017
4
c) Coverage ratio calculated as homes passed divided by the total addressable households (based on Nielsen data)
Link Net has achieved roll-out success …
Link Net is able to gradually ramp up new roll-outs over the past 5 years, supported by continuing growth in existing markets, expansion into in
new regions and new avenues such as partnering housing developers to accelerate this deployment, and acquiring fiber infrastructure
Leveraging existing & new channels
to accelerate homes passed Homes passed and cable length
Homes passed (000) Cable length (km)
Leveraging 2,500 24,890 31,000
existing fiber 24,266
backbone 22,859 26,000
2,000 19,689
16,309 21,000
1,500 12,805 16,000
1,909
1,862 11,000
Acquiring 1,673
Regular 1,000 1,433
fiber 1,194 6,000
rollout 933
infrastructure
Growing 500 1,000
2012 2013 2014 2015 2016 1H2017
homes
passed
Strong execution track record in rolling new homes passed
Maximized investment returns by cherry picking the premium households
Partnering who can afford Link Net services
home Extensions
developers
Proven expansion strategy and technical know-how
5
Partnering home developers to accelerate homes passed
Indonet
Cowell Development
Intiland
Jakarta Garden City
Residence One, Serpong
Summarecon Apartments
Bumi Serpong Damai (BSD)
Mangkuluhur City Apartment
Citraland, Surabaya
6
…and enlarge its subscriber base whilst maintaining its premium ARPU
Link Net achieved strong RGU additions with further penetrations while retaining premium ARPU
Added new RGUs while keeping churn at 2.3% Maintaining premium ARPU
('000) (IDR '000)
2.3% 2.3%
2.2% 2.2% 419
1,075
2.0%
415
1,024
407
528 1.5%
890 402
503
755 1.0%
433
363
547 0.5%
521
457
392
–
2014 2015 2016 1H 2017 2014 2015 2016 1H 2017
Broadband Cable TV Churn
7
Highly attractive financial profile…
Revenue
(IDR billions)
1,651
1,393 842
719
1H16 1H17 2Q16 2Q17
8
… with potential leverage capacity
EBITDA Net Profit
(IDR in billions) (IDR in billions)
EBITDA margin (%) Net Profit margin (%)
59.8% 59.1% 28.5% 29.7%
976 490
834 397
1H 2016 1H 2017 1H 2016 1H 2017
Capex (IDR bn)(1) Net Cash with potential leverage capacity(2)
(IDR in billions)
154
452 408
531
377
1H 2016 1H 2017 Total Cash Total Debt Net Cash
Source: Company information
(1) Capex represents additions to property and equipment 9
(2) Total cash and debt position as of June 30, 2017. Total debt mainly comprises vendor financingFully-owned(a) advanced and technologically resilient HSBB network
Future proof network with abundant bandwidth capacity and high level of network redundancy
Headend Distribution hubs Node Subscriber premises
>24,800 km of cable across Indonesia Technologically agnostic approach to future rollout:
- HFC network in the existing brownfield areas and FTTH network to be
Has access to a total of 780 Gbps of International rolled out in new areas within the brownfield for enhancement
bandwidth capacity - FTTH network to be rolled-out in greenfield areas with market skewed
to the fiber-centric infrastructure
Owns and has the capability to operate up to 8 Tbps fiber lines to
Singapore gateway
Offering a high quality HFC and FTTH network offering speeds
Fully owned fiber backbone and last mile(a) upgradable to 10Gbps
a) Limited exceptions for certain last mile owned by property developers
b) Refers to greenfield network rollouts only
c) Gigabit Passive Optical Network 10Fully-owned(b) advanced and technologically resilient HSBB network (cont’d)
Link Net has already completed most of its end-to-end network infrastructure, assuring network quality and
reducing future investment requirement
International Gateway Inter-city Connection Intra-city Connection Last Mile Roll-out
Vertically Integrated End-to-end Network Infrastructure
2 proprietary international Acquired pan-Java
fibre lines / submarine backbone in 2017 24,890 km(a) of cable network
cables providing
bandwidth to Singapore
Acquired Jakabare in 100% proprietary intra- Substantially self-owned
2013 and B2JS in 2015 city connection in all of last mile roll-out(b)
the operating cities
Selective usage of Third Party Network for Quality
a) Total cable length includes HFC and FTTH
b) Limited exceptions for certain last mile owned by property developers 11First Media accelerating expansion momentum
Regional expansion through intercity hub acquisition in Java
Ultimate Capacity & Network Design
The Network will employ DWDM technology with a maximum capacity 8000Gbps. It
will be design with 1+1+R redundancy configuration using the five protection rings to
achieve high network availability. The DWDM system can upgraded easily to meet
future demand
Coverage
The Network will cover most of major cities in Java Island with 43 POP sites. A
full 100G wavelength will be activated at every city commissioned to provide
ample capacity to support future growth
Time Delivery
The DWDM system is being designed and implemented now and will be ready by Q1
2018
13Regional expansion through intercity hub acquisition in Java
The intercity fiber backbone will open doors to more than 43 cities that were previously untapped by Link Net
Build and managed by Triasmitra Group, the
telecommunication infrastructure deployer,
including rolling out fiber optic and power cable
network with a total over 7,000 km of
submarine and inland FO cable system
deployed.
- Route using national way
CITIES COVERED: - Total 5 Rings
No City No City No City No City No City - Total distance of 2,615 km
1 Bandung 10 Ciranjang 19 Jombang 28 Purwakarta 37 Surabaya - Capacity: 4 cores (North), 4 cores (South)
2 Bekasi 11 Cirebon 20 Karawang 29 Purwodadi 38 Tegal
3 Bobotsari 12 Depok 21 Kebumen 30 Purwokerto 39 Tjepu To achieve 2.8 million homes passed
4 Bogor 13 Gandrungmangu 22 Lamongan 31 Salatiga 40 Ungaran cumulative in 5 years (existing and new cities)
5 Bojonegoro 14 Garut 23 Madiun 32 Semarang 41 Wates
6 Boyolali 15 Gendingan 24 Mojokerto 33 Solo 42 Weleri
7 Cepu 16 Gresik 25 Nganjuk 34 Subang 43 Yogyakarta
8 Ciamis 17 Indramayu 26 Patrol 35 Sukabumi
9 Cilacap 18 Jakarta 27 Pekalongan 36 Sumedang
14PT Ketrosden Triasmitra
23 years 3 Core Businesses 15 Premier Customers
of experience in telco Strong competence as telco
industry Developer, Contractor, and
Managed Service company
7,304 km
More than 7,000 km of
submarine and inland FO cable
system deployed
Certification
The Certification
Jartup License Construction ISO 9001 The Committee
No. 325 - 2015 Service ISO 14001 Safety & Health
Work Permit OHSAS 18001 Supervisory
Grade 7 15Thank you
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