Management Presentation 2016_Update 1Q-16_v20

© 2016 PT Nusantara Infrastructure Tbk

1

PT Nusantara Infrastructure Tbk. Management Presentation

Jakarta, May 2016


Presentation Contents

2

PART I : Company Profile 3

PART II : Business Strategy 8

PART III : Business Overview 12

PART IV : Financial Highlights 34

www.nusantarainfrastructure.com


Indonesia‟s Leading Private Infrastructure Investor and Operator

PT Nusantara Infrastructure Tbk. is listed at the

Indonesia Stock Exchange. The company currently

serves over 103 million customers, 550,000

households, 266 factories and 210 vessels, 1,269

telecommunication tenancies, in its toll road, water,

port, energy, and telecommunication tower

businesses.

3


Company Overview

Founded through backdoor listing in 2006, PT Nusantara Infrastructure Tbk. is an

Indonesia‟s leading private infrastructure company.

PT Nusantara Infrastructure Tbk. is listed at the Indonesia Stock Exchange (Ticker: META).

The company manages diversified infrastructure sectors across:

1. Toll Road

2. Port

3. Water

4. Renewable Energy

5. Telecommunication Tower

4

Transportation

Infrastructure

Utilities

Infrastructure


Company Overview

Consistent growth throughout year 2006 to 2015 on financial performance.

Company’s Financial Performance Snapshot:

─ Total Assets 1Q-16 IDR 5.139 Billion CAGR 2006 – 2015 = 29%

─ Total Equity 1Q-16 IDR 2.667 Billion CAGR 2006 – 2015 = 26%

─ Total Revenue 2015 IDR 618 Billion CAGR 2006 – 2015 = 21%

─ EBITDA 2015 IDR 349 Billion CAGR 2006 – 2015 = 29%

─ Net Income 2015 IDR 131 Billion CAGR 2006 – 2015 = 74%

5


99.99%

Shareholding Structure

PT Hijau Makmur

Sejahtera

21.00%

Eagle Infrastructure

22.32%

Public and Others

56.68%

6

PT Margautama

Nusantara

(“MUN”)

PT Portco

Infranusantara

(“Portco”)

PT Potum Mundi

Infranusantara

(“POTUM”)

PT Telekom

Infranusantara

(“TI”)

PT Energi

Infranusantara

(“EI”)

74.98% 99.99% 99.99% 99.99%

Note:

(1) As of December 2015.


Corporate Structure

Cap Asia

invested in 2013 Partnered with

PEP in 2014

ISAB

Acquired

2012

Acquired &

Developed

2013

Acquired &

Developed

2012

SCTK

Developed

2012

Acquired

2014

Acquired

2006

Expanded

2008

Acquired

2006

Acquired &

Developed

2009

Developed

2007

BSD JLB

Acquired

2012

TBN

TKCM

74.99% 99.99% 99.99% 99.99% 99.99%

88.93% 98.53% 25.00% 39.00% 51.00% 51.00% 64.99% 54.64% 69.36%

99.39% 28.00%

Partnered with

JEXWAY

in 2014

Partnered

with LDC in 2012

7

Note:


BMN

JTSE

DCC KIN IME

Acquired

2012

Legend:

: Business Unit Level

BSD : PT Bintaro Serpong Damai

BMN : PT Bosowa Marga Nusantara

JTSE : PT Jalan Tol Seksi Empat

JLB : PT Jalan Lingkar Baratsatu

ISAB : PT Inti Sentosa Alam Bahtera

TBN : PT Tirta Bangun Nusantara

TKCM : PT Tirta Kencana Cahaya Mandiri

DCC : PT Dain Celicani Cemerlang

SCTK : PT Sarata Catur Tirtakelola

IME : PT Inpola Meka Energi

KIN : PT Komet Infra Nusantara

Partnered

with PTPP in

2012

© 2016 PT Nusantara Infrastructure Tbk 8

PART II: Business Strategy


Investment Policy and Strategy

Diversified Infrastructure Portfolio

Focus Strategic Assets

Stable & Growth Assets

Relatively High Margin

Medium – Long Term Contract

9


Business Strategy

Grow through Organic (Business Development), Acquisitions, and Optimizing & Enhancement Existing

Assets

Alliances with Strategic Partners, Co-Investment with Global Players

Value Engineering, Structuring Competence, Creative Financing

Well Positioned to benefit Indonesia Infrastructure Gap

10


Business Sector Growth Drivers

11

Toll Roads Ports Water Renewable Energy Telco Tower

901 Telecommunication

Towers across Java,

Sumatera, Kalimantan,

and East Region

4 Toll Roads in Jakarta

and Makassar City

Panjang Seaport in

Lampung, South

Sumatera

3 Water Treatment

Plants in Greater Jakarta

and North Sumatera

Mini Hydro Power Plant

in North Sumatera

Medium to Long-Term

key contracts (10 – 12

years period) with

Telecommunication

Operators.

Contract Inflationary

Adjusted – Relatively

stable margin.

Additional colocation to

capture higher margin.

Strategic roads

providing direct access

between urban areas

and Central Business

District Area (CBD),

Airports, and Seaports.

Business Development

initiatives to capture

potential traffic

surroundings.

Commercial port with

local and international

customers. Major

customers: Louis

Dreyfus Commodities

and Wilmar

International.

Operational of 105,000

MT tank storage

capacity to drive future

growth.

Long term off-take

contracts with Local

Government (PDAM),

Industrial Developer

(KIM), and Commercial

customers.

Water treatment

capacity upgrades

drive future business

growth.

Long term concession

of 30 years with PLN as

off taker.

Amendment of PPA

with Feed-In tariff (US$

9 cent per KWh)

secures the business

revenue model.

Diversified and Agile Growth Drivers Allows Company to Achieve Sustainable Growth

Growth + Stability Growth Growth + Stability Growth + Stability Growth + Stability


PART II: Business Overview

12


Toll Road

13


Margautama Nusantara (MUN)

Focus in Developing Strategic Roads.

Current Portfolio:

1. Harbour Road – Makassar

2. Commuter Road – Greater Jakarta

3. Airport Toll Road – Makassar

4. Jakarta International Airport Road (2nd) – JORR 1

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Toll Roads Portfolio Profile

15

Connectivity

Direct access from South

Tangerang area to Jakarta

inner city

Direct Access from Makassar

city to Soekarno – Hatta

Harbour

Direct Access to Makassar

Airport from Makassar inner

city.

Direct access to Jakarta

International Airport from West

Jakarta area

Length 7.25 Km 5.95 Km 11.57 Km 10.00 Km

Concession 1999 - 2028 1998 - 2028 2007 - 2041 2007 - 2042

Tariff Class I: IDR 5,000 Class I: IDR 3,500 Class I: IDR 8,500 Class I: IDR 8,500

Traffic

2015: 79.1

2014: 80.8

2015: 57.2

2014: 55.6

2015: 42.4

2014: 40.3

2015: 103.3

2014: 87.2

Commuter Road (BSD) Harbour Road (BMN) Airport Toll Road (JTSE) Jakarta International Airport Road

JORR 1 (JLB)

CAGR 1999 – 2015

19.4%

Average Daily Traffic

In „000 Vehicles per Day







CAGR 1998 – 2015

8.4%

CAGR 2008 – 2015

16.8%

CAGR 2010 – 2015

27.3%


Triple Double Digit Growth

16

149 185

229 269

307 337 347

413

2009 2010 2011 2012 2013 2014 2015 2016

CAGR 5 Years (2009 – 2014)

Revenue(1) 17.7%

Solid performance over 5 years period reflected in triple double digit growth in toll roads sector.

Note:

(1) Total Toll Road Revenue, excluding Construction Revenue.

Actual Actual Actual Actual Actual Actual Actual Target

2016 Target vs. 2015

Revenue(1) +19.0% YoY

Margautama Nusantara (MUN) Revenue Trend 2010 – 2015

IDR Billion; unless otherwise stated



17

56 66

116

148

182

212 208

252

2009 2010 2011 2012 2013 2014 2015 2016



CAGR 5 Years (2009 – 2014)

Operating Income 30.5%


Operating Income +22.3% YoY

Margautama Nusantara (MUN) Operating Income Trend 2010 – 2015




18

106 127

173

211 242

276 275

331

2009 2010 2011 2012 2013 2014 2015 2016


Note:

(1) Earnings Before Interest, Taxes, Depreciation & Amortization.

CAGR 5 Years (2009 – 2014)

EBITDA(1) 21.1%


EBITDA(1) +21.2% YoY


Margautama Nusantara (MUN) EBITDA Trend 2010 – 2015



JEXWAY Partnership

Signing Ceremony at Osaka, Japan Group Photo with JEXWAY Team

19

In November 2014, JEXWAY joined as part of BSD shareholders.

JEXWAY is entering a mutually beneficial cooperation agreement, to ensure the business

expansion of MUN, using Japanese Advance Technologies, comprise of:

1. Project estimation

2. Traffic Control System

3. Facilities Control Center

4. Asset Management


Water

20


Potum Mundi Infranusantara (POTUM)

Providing clean water supply, distributed in bulk water to PDAM and end-

customers (households and commercial / industrial).

Current Portfolio:

1. Cisadane Water Treatment Plant – TKCM

2. Medan Industrial Water Treatment Plant – DCC

3. East Serang Industrial Water Treatment Plant – SCTK

21


1,275

1,286

1,575

2014 2015 Future

100 100

235

2014 2015 Future

65 110

375

2014 2015 Future

Water Portfolio Profile

22

Location Tangerang (Greater Jakarta) Medan (North Sumatera) Serang (Greater Jakarta)

Water Tariff IDR 1,507 / m3 IDR 5,800 / m3 IDR 8,500 / m3

Concession 2004 – 2019 2012 – 2032 2015 – 2038 (Amendment)

Customers

Tangerang PDAM

Tangerang area households through

PDAM

Kawasan Industri Medan consists of

153 industrial customers

140 industrial customers in East

Serang Regency

Surrounding households through

PDAM

Capacity

Cisadane WTP (TKCM) Medan Industrial WTP (DCC) East Serang WTP (SCTK)

+300 lps +135 lps +310 lps

Water Production Capacity

In liter per second (lps)






POTUM Financial Performance

23

Potum Mundi Infranusantara (POTUM) Financial Performance 2015 vs. 2014


Future capacity upgrades drive the potential performance growth in water sector.

24

8 6 9

32

11 10

19

Revenue EBITDA Operating Income Net Income

Revenue(1)

+31.6% YoY

+8 Billion

2014 2015

EBITDA(2)

+48.8% YoY

2015 Margin

35.7%

Operating Income

+66.3% YoY

2015 Margin

32.6%

Net Income(3)

+104.9% YoY

2015 Margin

61.1%

2014 2015 2014 2015 2014 2015

Note:

(1) Excluding Construction Revenue, as per Stated in the Financial Statements.


(3) Net Income Attributable to Owner of the Parent Entity (After Minority Interest).


Port

24


ISAB – Panjang Seaport

One of Indonesia’s 25 strategic seaports

located in Lampung (South Sumatera).

Major customers are Louis Dreyfus

Commodities and Wilmar International.

ISAB is the operator of Panjang Seaport,

providing port services, warehousing,

stevedoring services, and tank storage

rental.

The tank storage is mostly serving liquid

storage (crude palm oil) and dry bulk

storage (fertilizers).

ISAB Port Jetty ISAB Port Liquid Tank Storage Dry Bulk Warehouse

14,000

48,000 48,000

105,000 105,000

2011 2012 2013 2014 2015

Tank Storage Capacity

In Metric Ton

25


PORTCO Financial Performance

26

Portco Infranusantara (Portco) Financial Performance 2015 vs. 2014


Stable performance in port services benefit from tank farm capacity upgrades.

216

62

16 3

280

64

31 15

Total Assets Investment in ISAB Retained Earnings Net Income

Total Assets

+25.5% YoY

2014 2015

Investment in

ISAB(1)

+48.8% YoY

Retained

Earnings

+66.3% YoY

Net Income(2)

+502.8% YoY

2014 2015 2014 2015 2014 2015

Note:

(1) Total Investment in Associate Company (ISAB: PT Inti Sentosa Alam Bahtera).



Renewable Energy

27


Lau Gunung Mini Hydro Power Plant

Currently constructing a Mini Hydro Power Plant, 2 x 7.5 MW capacity located in North Sumatera.

The project has a 30 year contract with PLN with Feed-In tariff regulation of US$ 9 cent per KWh.

First operation is expected to start by 3Q-2018 (third quarter year 2018).

The company is partnering with PT Pembangunan Perumahan (Persero) Tbk. (PTPP) as a joint shareholder and the

main contractor.

Location Lau Gunung River, North Sumatera

Energy Type Hydro / Run-off River

Concession 30 years

Annual Energy Output 107 GWh

Installed Capacity 15 MW (2 x 7.5 MW)

Feed-In Tariff US$ 9 cent per KWh

Project Cost IDR 288 Billion (US$1.44 Million per MW)

Estimated Y1 Revenue IDR 115 Billion

Project Profile Project Location

74.5 km from Medan Capital City

28


Telecommunication Tower Sector

29


Komet Infra Nusantara (KIN)

30

KIN is an independent telecommunication tower operator in Indonesia, providing tower space for lease and

services based on long-term contracts to telecommunication operators in Indonesia.

KIN is committed to be one of the major players in the telecommunication tower industry, and to achieve this, KIN is

growing aggressively through organic growth and asset acquisitions.

KIN Corporate Structure(1)

KIN

69.36%

99.99%

PT Tara Telco Indonesia

(existing founder shareholder,

individual)

PT Grha Mekatama Telindo

(existing founder shareholder,

individual)

13.70% 16.94%

Telekom Infranusantara

Providence Equity Partners

Debt Instrument

Legend:

KIN : PT Komet Infra Nusantara Note:



Portfolio Overview

31

Note:


Operator Total Tenants

(Anchor + Colo)

Avg. Rental per

Month (IDR

Million)

% of Total

Tenancies

% of 2015

Revenue

353 15.5 28% 30%

272 12.6 21% 20%

191 15.1 15% 15%

238 14.1 19% 21%

165 12.8 13% 11%

43 12.5 3% 3%

7 9.0 1% 0%

Total 1,269 14.1 100% 100%

Tie

r 1

Op

era

tor

Tie

r 2

Op

era

tor

Tier-1

operator as

% of 2015

Revenue:

86%

Tier-2

operator as

% of 2015

Revenue:

14%

KIN 901 telecommunication towers(1) cover the area of 45% Sumatera Island, 41% Java Island, 8% Jabodetabek,

and 7% in Kalimantan, Bali, and Nusa Tenggara (East Region).

Asset Type consists of 76% Ground Based (Macro Tower) and 24% Rooftop Based.

KIN Customer Contract Profile(1)


Tower Growth Evolution

Summary Chart KIN Tower Evolution 2014 – 2015

Number of Tower

32

KIN 21-Jan-14 2014 OrganicB2S

2014 InorganicM&A

KIN 2014 2015 OrganicB2S

2015 InorganicM&A

KIN 2015

193 30

368 591 80

230 901

Size Growth +3.7x in 2 years period

5 M&A transactions

(portfolio size ~20 –

70 towers per

acquisition)

3 M&A transactions

(portfolio size ~10 –

156 towers per

acquisition)

Fair Valuation: Careful and adequate due diligence to value the fundamentals and understand the true asset potential.

Efficient Process: Best in class M&A team, swift transactions to maintain a good reputation for KIN.

Flexible structure: Open to suggestions on the transaction structure that would fit best for both parties.

KIN Growth Strategy


KIN Financial Performance

33

133

77 76 86

199

119 103 102


Revenue

+50.1% YoY

+67 Billion

2014 2015

EBITDA(1)

+53.1% YoY

2015 Margin

59.5%

Operating Income

+34.8% YoY

2015 Margin

51.7%

Net Income(2)

+17.8% YoY

2015 Margin

51.0%

2014 2015 2014 2015 2014 2015

Komet Infra Nusantara (KIN) Performance 2015 vs. 2014


Combination between organic and inorganic strategy resulting strong growth in financial performance.

Note:




PART III: Financial Highlights


Financial Performance

35

518

278

202

92

618

349

252

131


Revenue(1)

+19.3% YoY

+100 Billion

2014 2015

EBITDA(2)

+25.5% YoY

2015 Margin

56.5%

Operating Income

+24.7% YoY

2015 Margin

40.8%

Net Income(3)

+42.4% YoY

2015 Margin

21.2%

2014 2015 2014 2015 2014 2015

NI Consolidated Financial Performance 2015 vs. 2014


Solid growth on 2015 Financial Performance as the Company maintained its double digit growth.

Note:

(1) Including Construction Revenue, as per Stated in the Financial Statements.




641

4,075

942

2,361

637

4,840

1,280

2,604

Cash and Cash Equivalents Total Assets Interest Bearing Liabilities Total Equity

Financial Position

36

Cash and Cash

Equivalents

IDR 637 Billion

Current Ratio

252.8%

Total Assets

+18.8% YoY

Debt(1) to Assets

Ratio

26.4%

Interest Bearing

Liabilities(2)

+35.9% YoY

Net Debt(3) to

EBITDA

1.84x

Total Equity

+10.3% YoY

Debt(1) to Equity

Ratio

49.2%

NI Consolidated Financial Position 2015 vs. 2014


Strong Financial Position remained in 2015, stable cash flows and maintained leverage ratio for future growth.

2014 2015 2014 2015 2014 2015 2014 2015

Note:

(1) Debt = Outstanding Interest Bearing Liabilities (Current & Non-Current).

(2) Excluding Islamic Financing debt from Providence Equity Partners in Telecommunication Tower segment (Non-Interest Bearing Liabilities).

(3) Net Debt = Debt minus Cash and Cash Equivalents


Financial Performance Trend

37

270

426 518

618

131 163

2012 2013 2014 2015 1Q-15 1Q-16

CAGR 3 Years (2012 – 2015)

31.7%

1Q-16

+24.7% YoY

+32 Billion

NI Consolidated Revenue(1) Contribution 2015 vs. 1Q-16

59%

6%

35%

63%

5%

32%

2015 1Q-16

Note:

(1) Including Construction Revenue, as per Stated in the Financial Statements.

NI Consolidated Revenue(1) Trend 2012 – 1Q-16




38

104 127

202

252

63 82

171 193

278

349

84 107

2012 2013 2014 2015 1Q-15 1Q-16

CAGR 3 Years (2012 – 2015)

Operating Income 34.4%

EBITDA(1) 26.8%

1Q-16

Operating Income +30.4% YoY

50.1% Margin

EBITDA(1) +27.4 YoY

65.7% Margin

Operating

Income EBITDA

Operating

Income EBITDA

Operating

Income EBITDA

Operating

Income EBITDA

Operating

Income EBITDA

Operating

Income EBITDA

Well diversified portfolio drives the company to achieve robust growth.

Note:


NI Consolidated Operating Income and EBITDA Trend 2012 – 1Q-16




39

43 60

92

131

26 37

2.8 3.9 6.1

8.6

1.7 2.4

2012 2013 2014 2015 1Q-15 1Q-16

Net Income

EPS

CAGR 3 Years (2012 – 2015)

Net Income(1) 44.6%

1Q-16

Net Income(1) +40.2% YoY

22.7% Margin

With stable and growth assets, the Company manages to maintain its earning generation.

Note:


NI Consolidated Net Income and EPS Trend 2012 – 1Q-16

IDR Billion for Net Income and IDR for EPS; unless otherwise stated


513

2,580

737

1,756

641

4,075

942

2,361

637

4,840

1,280

2,604

632

5,139

1,366

2,662

Cash and Cash Equivalents Total Assets Interest Bearing Liabilities Total Equity

Financial Position Trend

40

1Q-16

Cash Ratio 94.7%

Current Ratio 247.6%

NI Consolidated Financial Position Trend 2013 – 1Q-16


Trend showed company‟s financial position is at healthy condition and well-maintained.

2013 2014 2015 1Q-16 2013 2014 2015 1Q-16 2013 2014 2015 1Q-16 2013 2014 2015 1Q-16

1Q-16

Total Assets +6.2% vs.

2015

Debt(1) to Assets Ratio

26.6%

1Q-16

Debt(1) Service

Coverage Ratio 2.47x

Net Debt(2) to EBITDA

1.71x

1Q-16

Total Equity +2.2% vs.

2015

Debt(1) to Equity Ratio

51.3%

CAGR 3 Years (2012 – 2015)

33.8%

CAGR 3 Years (2012 – 2015)

35.5%

Note:

(1) Debt = Outstanding Interest Bearing Liabilities (Current & Non-Current).

(2) Net Debt = Debt minus Cash and Cash Equivalents


Positioning Local Company with Global Partners

41

Proven track record of operating, building and acquiring strategic assets throughout Indonesia and working with

foreign investors and partners, including

1. Louis Dreyfus Commodities Holdings Limited (“LDC”).

2. Capital Advisors Partners Asia Pte Ltd (“Cap Asia”).

3. Providence Equity Partners (“PEP”).

4. Japan Expressway and West Nippon Expressway (“JEXWAY”).

2012

Strategic Partnership with Louis Dreyfus Commodities

(“LDC”)

In ISAB for a multi-purpose seaport in Lampung

2013

Investment with Capital Advisors Partners Asia Pte.

Ltd. (“Cap Asia”)

25% in MUN amounting IDR 681 Billion via capital

enlargement and divestment

2014

Co-Investment with Providence Equity Partners (“PEP”)

IDR 460 Billion of debt instrument for KIN

acquisitions

2015

Cooperation with JEXWAY (Japan Expressway) and W-NEXCO (West Nippon

Expressway)

Entering to a mutually beneficial cooperation in Toll Road Operational

Excellence programs, as a following action on BSD Share Purchase 4.18%


www.nusantarainfrastructure.com

Thank You

Management Presentation 2016_Update 1Q-16_v20

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Transcript of Management Presentation 2016_Update 1Q-16_v20