PT Link Net Presentation event vF
PT Link Net Tbk
Signing Ceremony
5 September 2017
Indonesia macro: a massive opportunity
Rapid GDP/capita growth(a)
Rising population growth
GDP per capita (US$)
Population (m)
~53% of population under 30 years of age
Millennials with “internet lifestyle”
3,598
5,312
GDP (US$bn)
259
1,466
276
932
2016
2021
Increasing disposable incomes(b)
2016
2021
Increasing urbanization(c)
Annual household
disposable incomes (US$)
As % of GDP
Urban
54%
Rural
46%
66%
4,973
+12%
3,770
2016
Source: 2017 Media Partners Asia unless otherwise stated
a) Source: IMF Data (GDP refers to nominal GDP)
b) Source: OECD Data
c) Source: World Bank and IMF
2021
2016
34%
2030
1
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
88.5%
2016 penetration
28.3% 32.3%
14.4%
Indonesia
10.6%
94.8%
74.2%
2020 penetration
45.0%
9.1%
955
33.4%
52.3%
34.4% 38.8%
17.1%
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
85.8%
2016 penetration
2020 penetration
Indonesia
Source: 2016 Media Partners Asia
17.6%
22.5%
Philippines
1,161
79.2% 77.9%
69.0%
40.3%
11.2% 13.4%
1,062
44.9%
52.4% 52.6%
30.7% 31.1%
Thailand
Vietnam
Malaysia
China
Singapore
2
Link Net at a glance
A leading
HSBB(a) provider
in Indonesia(b)
with ~1.9m
Homes passed
Targets large and
fast growing affluent
segment(c). Large
subscriber base (~1.1m
RGUs) with low and
stable churn
Strong enterprise
portfolio offering
with certain
governmental and
financial institutions
including IDX
as customers
Innovation led
premium product
offering supporting
premium ARPUs
with 97%
bundling rate
Track record of
strong growth – 18%
revenue CAGR(d)
with 59% EBITDA(e)
margin along
with resilient
balance sheet
Fully-owned(f),
technology neutral
network
with abundant
capacity
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
b) Source: 2017 Media Partners Asia. Link Net is a leading HSBB provider in Indonesia in terms of subscriber market share as of 30
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
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
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
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
•
Addressable households(a): 380k
•
Homes passed: ~4k(b)
•
Estimated coverage ratio(c): ~1%
Total LN homes passed: 1.9m
Total cable length: 24,890km
Batam
•
Roll outs started in June 2017
5%
1
Bandung
•
Addressable households(a): 580k
•
Homes passed: ~97k
•
Estimated coverage ratio(c): ~17%
18%
1
Greater Surabaya & Malang
77%
1
Greater Jakarta
•
Addressable households(a): 5,157k
•
Homes passed: ~1.457m
•
Estimated coverage ratio(c): ~28%
•
Addressable households(a): 1,204k
•
Homes passed: ~351k
•
Estimated coverage ratio(c): ~29%
Bali
• Focus on hotels
Note: Company data as of 30 June 2017 unless otherwise stated
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
c) Coverage ratio calculated as homes passed divided by the total addressable households (based on Nielsen data)
1
City homes passed / Total homes passed
4
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)
Leveraging
existing fiber
backbone
Cable length (km)
2,500
24,266
24,890
22,859
2,000
26,000
19,689
21,000
16,309
1,500
Acquiring
fiber
infrastructure
Regular
rollout
Growing
homes
passed
12,805
1,000
933
1,194
1,433
31,000
1,673
1,862
1,909
16,000
11,000
6,000
500
1,000
2012
2013
2014
2015
2016
1H2017
Strong execution track record in rolling new homes passed
Partnering
home
developers
Extensions
Maximized investment returns by cherry picking the premium households
who can afford Link Net services
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%
('000)
2.2%
2.3%
2.2%
Maintaining premium ARPU
(IDR '000)
2.3%
419
1,075
2.0%
415
1,024
528
407
1.5%
890
402
503
755
1.0%
433
363
392
457
521
547
0.5%
–
2014
2015
Broadband
2016
Cable TV
1H 2017
2014
2015
2016
1H 2017
Churn
7
Highly attractive financial profile…
Revenue
(IDR billions)
1,651
1,393
842
719
1H16
1H17
2Q16
2Q17
8
… with potential leverage capacity
Net Profit
EBITDA
(IDR in billions)
EBITDA margin (%)
(IDR in billions)
Net Profit margin (%)
59.8%
59.1%
29.7%
28.5%
490
976
834
397
1H 2016
1H 2017
1H 2016
1H 2017
Net Cash with potential leverage capacity(2)
Capex (IDR bn)(1)
(IDR in billions)
154
452
1H 2016
408
1H 2017
Source: Company information
(1)
Capex represents additions to property and equipment
(2)
Total cash and debt position as of June 30, 2017. Total debt mainly comprises vendor financing
531
377
Total Cash
Total Debt
Net Cash
9
Fully-owned(a) advanced and technologically resilient HSBB network
Future proof network with abundant bandwidth capacity and high level of network redundancy
Headend
Distribution hubs
>24,800 km of cable across Indonesia
Has access to a total of 780 Gbps of International
bandwidth capacity
Owns and has the capability to operate up to 8 Tbps fiber lines to
Singapore gateway
Fully owned fiber backbone and last
a) Limited exceptions for certain last mile owned by property developers
b) Refers to greenfield network rollouts only
c) Gigabit Passive Optical Network
mile(a)
Node
Subscriber premises
Technologically agnostic approach to future rollout:
- HFC network in the existing brownfield areas and FTTH network to be
rolled out in new areas within the brownfield for enhancement
- FTTH network to be rolled-out in greenfield areas with market skewed
to the fiber-centric infrastructure
Offering a high quality HFC and FTTH network offering speeds
upgradable to 10Gbps
10
Fully-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
fibre lines / submarine
cables providing
bandwidth to Singapore
Acquired pan-Java
backbone in 2017
24,890 km(a) of cable network
100% proprietary intracity connection in all of
the operating cities
Acquired Jakabare in
2013 and B2JS in 2015
Substantially self-owned
last mile roll-out(b)
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
11
First 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
13
Regional 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.
No
1
2
3
4
5
6
7
8
9
City
Bandung
Bekasi
Bobotsari
Bogor
Bojonegoro
Boyolali
Cepu
Ciamis
Cilacap
CITIES COVERED:
No
City
No
City
10
Ciranjang
19
Jombang
11
Cirebon
20
Karawang
12
Depok
21
Kebumen
13 Gandrungmangu 22
Lamongan
14
Garut
23
Madiun
15
Gendingan
24
Mojokerto
16
Gresik
25
Nganjuk
17
Indramayu
26
Patrol
18
Jakarta
27
Pekalongan
No
28
29
30
31
32
33
34
35
36
City
Purwakarta
Purwodadi
Purwokerto
Salatiga
Semarang
Solo
Subang
Sukabumi
Sumedang
No
37
38
39
40
City
Surabaya
Tegal
Tjepu
Ungaran
41
42
43
Wates
Weleri
Yogyakarta
- Route using national way
- Total 5 Rings
- Total distance of 2,615 km
- Capacity: 4 cores (North), 4 cores (South)
To achieve 2.8 million homes passed
cumulative in 5 years (existing and new cities)
14
PT Ketrosden Triasmitra
23 years
of experience in telco
industry
3 Core Businesses
15 Premier Customers
Strong competence as telco
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
Service
No. 325 - 2015
Work Permit
Grade 7
ISO 9001
ISO 14001
OHSAS 18001
The Committee
Safety & Health
Supervisory
15
Thank you
Signing Ceremony
5 September 2017
Indonesia macro: a massive opportunity
Rapid GDP/capita growth(a)
Rising population growth
GDP per capita (US$)
Population (m)
~53% of population under 30 years of age
Millennials with “internet lifestyle”
3,598
5,312
GDP (US$bn)
259
1,466
276
932
2016
2021
Increasing disposable incomes(b)
2016
2021
Increasing urbanization(c)
Annual household
disposable incomes (US$)
As % of GDP
Urban
54%
Rural
46%
66%
4,973
+12%
3,770
2016
Source: 2017 Media Partners Asia unless otherwise stated
a) Source: IMF Data (GDP refers to nominal GDP)
b) Source: OECD Data
c) Source: World Bank and IMF
2021
2016
34%
2030
1
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
88.5%
2016 penetration
28.3% 32.3%
14.4%
Indonesia
10.6%
94.8%
74.2%
2020 penetration
45.0%
9.1%
955
33.4%
52.3%
34.4% 38.8%
17.1%
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
85.8%
2016 penetration
2020 penetration
Indonesia
Source: 2016 Media Partners Asia
17.6%
22.5%
Philippines
1,161
79.2% 77.9%
69.0%
40.3%
11.2% 13.4%
1,062
44.9%
52.4% 52.6%
30.7% 31.1%
Thailand
Vietnam
Malaysia
China
Singapore
2
Link Net at a glance
A leading
HSBB(a) provider
in Indonesia(b)
with ~1.9m
Homes passed
Targets large and
fast growing affluent
segment(c). Large
subscriber base (~1.1m
RGUs) with low and
stable churn
Strong enterprise
portfolio offering
with certain
governmental and
financial institutions
including IDX
as customers
Innovation led
premium product
offering supporting
premium ARPUs
with 97%
bundling rate
Track record of
strong growth – 18%
revenue CAGR(d)
with 59% EBITDA(e)
margin along
with resilient
balance sheet
Fully-owned(f),
technology neutral
network
with abundant
capacity
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
b) Source: 2017 Media Partners Asia. Link Net is a leading HSBB provider in Indonesia in terms of subscriber market share as of 30
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
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
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
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
•
Addressable households(a): 380k
•
Homes passed: ~4k(b)
•
Estimated coverage ratio(c): ~1%
Total LN homes passed: 1.9m
Total cable length: 24,890km
Batam
•
Roll outs started in June 2017
5%
1
Bandung
•
Addressable households(a): 580k
•
Homes passed: ~97k
•
Estimated coverage ratio(c): ~17%
18%
1
Greater Surabaya & Malang
77%
1
Greater Jakarta
•
Addressable households(a): 5,157k
•
Homes passed: ~1.457m
•
Estimated coverage ratio(c): ~28%
•
Addressable households(a): 1,204k
•
Homes passed: ~351k
•
Estimated coverage ratio(c): ~29%
Bali
• Focus on hotels
Note: Company data as of 30 June 2017 unless otherwise stated
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
c) Coverage ratio calculated as homes passed divided by the total addressable households (based on Nielsen data)
1
City homes passed / Total homes passed
4
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)
Leveraging
existing fiber
backbone
Cable length (km)
2,500
24,266
24,890
22,859
2,000
26,000
19,689
21,000
16,309
1,500
Acquiring
fiber
infrastructure
Regular
rollout
Growing
homes
passed
12,805
1,000
933
1,194
1,433
31,000
1,673
1,862
1,909
16,000
11,000
6,000
500
1,000
2012
2013
2014
2015
2016
1H2017
Strong execution track record in rolling new homes passed
Partnering
home
developers
Extensions
Maximized investment returns by cherry picking the premium households
who can afford Link Net services
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%
('000)
2.2%
2.3%
2.2%
Maintaining premium ARPU
(IDR '000)
2.3%
419
1,075
2.0%
415
1,024
528
407
1.5%
890
402
503
755
1.0%
433
363
392
457
521
547
0.5%
–
2014
2015
Broadband
2016
Cable TV
1H 2017
2014
2015
2016
1H 2017
Churn
7
Highly attractive financial profile…
Revenue
(IDR billions)
1,651
1,393
842
719
1H16
1H17
2Q16
2Q17
8
… with potential leverage capacity
Net Profit
EBITDA
(IDR in billions)
EBITDA margin (%)
(IDR in billions)
Net Profit margin (%)
59.8%
59.1%
29.7%
28.5%
490
976
834
397
1H 2016
1H 2017
1H 2016
1H 2017
Net Cash with potential leverage capacity(2)
Capex (IDR bn)(1)
(IDR in billions)
154
452
1H 2016
408
1H 2017
Source: Company information
(1)
Capex represents additions to property and equipment
(2)
Total cash and debt position as of June 30, 2017. Total debt mainly comprises vendor financing
531
377
Total Cash
Total Debt
Net Cash
9
Fully-owned(a) advanced and technologically resilient HSBB network
Future proof network with abundant bandwidth capacity and high level of network redundancy
Headend
Distribution hubs
>24,800 km of cable across Indonesia
Has access to a total of 780 Gbps of International
bandwidth capacity
Owns and has the capability to operate up to 8 Tbps fiber lines to
Singapore gateway
Fully owned fiber backbone and last
a) Limited exceptions for certain last mile owned by property developers
b) Refers to greenfield network rollouts only
c) Gigabit Passive Optical Network
mile(a)
Node
Subscriber premises
Technologically agnostic approach to future rollout:
- HFC network in the existing brownfield areas and FTTH network to be
rolled out in new areas within the brownfield for enhancement
- FTTH network to be rolled-out in greenfield areas with market skewed
to the fiber-centric infrastructure
Offering a high quality HFC and FTTH network offering speeds
upgradable to 10Gbps
10
Fully-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
fibre lines / submarine
cables providing
bandwidth to Singapore
Acquired pan-Java
backbone in 2017
24,890 km(a) of cable network
100% proprietary intracity connection in all of
the operating cities
Acquired Jakabare in
2013 and B2JS in 2015
Substantially self-owned
last mile roll-out(b)
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
11
First 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
13
Regional 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.
No
1
2
3
4
5
6
7
8
9
City
Bandung
Bekasi
Bobotsari
Bogor
Bojonegoro
Boyolali
Cepu
Ciamis
Cilacap
CITIES COVERED:
No
City
No
City
10
Ciranjang
19
Jombang
11
Cirebon
20
Karawang
12
Depok
21
Kebumen
13 Gandrungmangu 22
Lamongan
14
Garut
23
Madiun
15
Gendingan
24
Mojokerto
16
Gresik
25
Nganjuk
17
Indramayu
26
Patrol
18
Jakarta
27
Pekalongan
No
28
29
30
31
32
33
34
35
36
City
Purwakarta
Purwodadi
Purwokerto
Salatiga
Semarang
Solo
Subang
Sukabumi
Sumedang
No
37
38
39
40
City
Surabaya
Tegal
Tjepu
Ungaran
41
42
43
Wates
Weleri
Yogyakarta
- Route using national way
- Total 5 Rings
- Total distance of 2,615 km
- Capacity: 4 cores (North), 4 cores (South)
To achieve 2.8 million homes passed
cumulative in 5 years (existing and new cities)
14
PT Ketrosden Triasmitra
23 years
of experience in telco
industry
3 Core Businesses
15 Premier Customers
Strong competence as telco
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
Service
No. 325 - 2015
Work Permit
Grade 7
ISO 9001
ISO 14001
OHSAS 18001
The Committee
Safety & Health
Supervisory
15
Thank you