PT Tower Bersama InfrastructureTbk ("TBIG") Announces Its First Half 2018 Financial Performance

Posted on 30th August 2018

JAKARTA, 30 August 2018 - PT Tower Bersama Infrastructure Tbk. ("TBIG") today released its interim financial statements for the six months period ended 30 June 2018.

Financial Highlights and Operational Indicators

During the six months ended 30 June 2018, TBIG generated revenue and EBITDA amounting to Rp2,079 billion and Rp1,793 billion, respectively.  Using the second quarter 2018 results on an annualized basis, revenue and EBITDA reached Rp4,169 billion and Rp3,591 billion, respectively.

As of 30 June 2018, TBIG had 23,794 tenants and 13,821 telecommunication sites. The Company’s telecommunication sites comprised 13,765 telecommunication towers and 56 DAS networks. With total tower tenants amounting to 23,738 on tower sites, the Company’s tenancy ratio is 1.72.

“In the first six months of 2018, we organically added 356 telecommunication sites and 861 collocations to our existing portfolio.  Although we added 1,217 organic tenancies in the first half of 2018, our net tenants were lower, primarily due to the non-renewal of tenancies. Based on our order book, we see a robust third quarter and we maintain our guidance of 2,500 tenancy growth for the full year 2018 as our telecommunication customers continue to densify and expand their 4G networks across the country,” commented Hardi Wijaya Liong, CEO of TBIG.

“While our focus has been on organic growth, we do evaluate all inorganic opportunities that may add value to our business. In April, we acquired a 19.8% stake in a listed tower company, PT Gihon Telekomunikasi Indonesia Tbk (“Gihon”) for Rp 127 billion. We have also paid Rp64 billion as an exchangeable bond to acquire another 10% of Gihon from the founding shareholder, that will take our overall stake to 29.8%. As of the end of June 2018, Gihon had 766 tenants consisting of 529 towers and 237 collocations,” added Hardi.

Total debt as of 30 June 2018, valuing USD loans at their hedged exchange rate, was Rp19,688 billion and gross senior debt was Rp13,744 billion while cash balance was Rp700 billion, resulting in a net debt of Rp18,988 billion and a net senior debt of Rp13,044 billion. Using the second quarter 2018 annualized EBITDA, the net senior debt to EBITDA ratio is 3.6x, and net debt to EBITDA ratio is 5.3x. We continue to have ample borrowing headroom based on the financial covenants contained in our bank and bond facilities.

“Our prudent hedging strategy of hedging all of our debt with life-of-debt hedges which match the maturity of the debt have ensured that recent movements in the Rupiah have not had any adverse impact on our business or financials. All of our hedges remain effective.  Moreover, we have continued to access the local IDR bond market at competitive rates. In the 2nd quarter of 2018, our effective interest rate (using the hedged rate of debt) has reduced to 9.6% from 10.3% at the end of 2017,” remarked Helmy Yusman Santoso, CFO of TBIG.

Helmy added, “This quarter, our leverage increased to 5.3x mostly due to the investment in Gihon (Gihon’s EBITDA is not consolidated), the payment of the FY2017 Final Cash Dividend of IDR 750bn, and spending on share buy backs.  We expect our leverage ratio to reduce over the next few quarters as a result of EBITDA growth and operational cashflow.  Our long term, guaranteed contracts from telecom operators provide excellent coverage over all of our future debt obligations.”

“As of 30 June 2018, we have 3.75% in treasury shares. Based on 2nd quarter 2018 annualized EBITDA (“run-rate EBITDA”), the 2nd quarter 2018 net debt (taking into account hedging contracts), and market capitalisation (adjusted for 3.75% treasury shares held at the end of June 2018), the run-rate EV/EBITDA is ~12x based on a Rp5,650 share price,” commented Helmy.

About PT Tower Bersama Infrastructure Tbk:

PT Tower Bersama Infrastructure Tbk (“TBIG”), is a provider of telecommunications infrastructure for the placement of BTS by telecommunications operators in Indonesia. TBIG is publicly listed on the Indonesian Stock Exchange and is majority owned by Saratoga Group and Provident Capital.

For more information contact:

Corporate Secretary:

Helmy Yusman Santoso – Tower Bersama Group

Telp. (62-21) 2924 8900

Email: corporate.secretary@tower-bersama.com

Investor Relations:

Veronica Jordan

Telp. (62-21) 2924 8900

Email: veronica.jordan@tower-bersama.com

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