globaltower minibrosur 25x18 low - global tower ukraine, belarus and turkish republic of northern...

Aydınevler Mahallesi No:20 Küçükyalı Ofis Park Maltepe, İstanbulTel:0850 229 78 00 Fax: 0216 376 58 53

www.globaltower.com.tr

Global Tower is the first and onlystandalone towerco in Turkey

and one of the largest standalonetowerco in Europe

GLOBAL TOWER AT A GLANCE

Established in 2006 as 100% subsidiary of Turkcell as

Pioneer of infrastructure sharing

Serves not only MNOs, but also broadcasters, ISPs, energy

& public institutions

In 2008, our subsidiary UkrTower has become Ukraine’s

sole independent towerco

In 2016, our subsidiary BelTower was established as

Belarus’s sole independent towerco

With its more than 10.000 unique portfolio of sites in

Turkey, Ukraine, Belarus and Turkish Republic of Northern

Cyprus, Global Tower became a regional player

1

2.376TURKEYManaged Sites

3.471TURKEYFully Owned

2.220TURKEYContractManagement

1.187UKRAINEFully Owned

830BELARUSRight of Use/ Sublease115

Turkish Republic ofNorthern CYPRUSRight of Use

SCOPE FOR EXPANSION BOTH IN AND OUT OF EXISTING MARKETS GLOBAL TOWER BUSINESS MODEL

2 3

1st in Turkey Tower Co

5th in Europe Tower Co

15th in Global Tower Co

With its more than 10.000 uniqueportfolio of sites in four countries

TURKEY

TURKISH REPUBLIC OF NORTHERN

CYPRUS

UKRAINE

BELARUS

Core Business

Buy&Lease Back

Built to Suite

Colocation

Contract Management

Passive & Active Maintenance

Energy Solutions

Site Search & Acquisition

Site Inspection & Monitoring

Additional Services

• Ground lease contract management services to MNOs

Services

TowerRental

Description

Build andSale

of Towers

ContractManagement

MaintenanceServices

Other

• MNOs, ISPs, Radio&TV broadcasters, administrative bodies & ISPs

• Only standalone licensed tower operator in Turkey and Ukraine

• Largest contributor to Global Tower’s revenues

• Tower infrastructure to MNOs, service integrators and technology service providers

• Site search & acquisition

• Technical & administrative services to launch new sites on a turn-key basis

• Maintenance services for MNOs, broadcasters periodically

• Tower dismantling services to MNOs for the towers in its portfolio

• Supply of active equipment for Radio&TV broadcasters

• Supply of energy infrastructure systems for the MNOs

• Tower inspection & reinforcement

En

gin

eeri

ng

Ser

vice

sWHAT WE OFFER? OUR PORTFOLIO BY PRODUCT TYPE

4 5

Tower Portfolio Consisting Purely of Greenfield Sites

Lattice Towers Monopole Towers Totem Towers Mobile Towers Wind Towers

HeightBetween 10 and

100 meters, with an average height of

52 metres

Antenna Capacity Between 5m2 and

35m2

HeightBetween 6 and 42

meters, with an average height of

28 metres


25m2



20 metres


25m2



25 metres


6m2

HeightDeveloped as free standing towers,

carrying measuring instruments and meteorological

instruments

Innovative ProductsCamouflage Products

Clock Towers Flag PostTowers

Palm TreeTowers Totem Towers

Telescopic Tower Atlas Tower Composite Tower

Res Tower Water Based Tower

Atlas & Spinning Wheel Tower with Safety Catch MultiRoom Shelter

Portable Cat Walkaway

TOWER INFRASTRUCTURE ELEMENTS ATTRACTIVE MACROECONOMIC FUNDAMENTALS AND DEMOGRAPHICS

6 7

Infrastructure Components Ownership

Component

Tower

Anten Apparatus

Antenna

Generator

Concrete Area

Shelter Room

Energy Line

Feeder Cable

Global Tower Customer

1

2

3

4

5

6

GE TR GB FR IT ES RO BE GR CZ HU SE

82 79

64 6460

46

2011 11 11 10 10S

eco

nd

Lar

ges

tP

op

ula

tio

n in

Eu

rop

e

Population 2016A (m)

Turkey Romania Serbia Hungary Spain Germany France Austria ItalyCzechRepublic

UnitedKingdom

3.8% 3.7%3.4%

2.3% 2.3% 2.2%

1.4% 1.3% 1.3%

0.9%

0.4%On

e o

f th

e m

ost

Fas

test

GD

P G

row

ths

in E

uro

pe

Average Real GDP Growth 16E-19E

Pre

do

min

antl

y Y

ou

ng

<25 years 25-50 years >50 years

27%

34% 39% 38% 36%

26%

37%21%

42%

Turkey WE CEE

Un

der

pin

nin

g A

ttre

ctiv

enes

s o

fG

lob

al T

ow

er’s

Co

re M

ark

et

GDP per Capita (Thousands of US$ at PPP)

20,617,3

11,06,1

55,8

35,9 34,5

Turkey Mexico Indonesia India US Italy Spain

Sources: Euromonitor, EIU, CIA World Factbook, Geohive.

(%, 2016A)

1

2

3

4

5

6

9

SIZABLE AND ATTRACTIVE TELECOM MARKET: EXPANDING SUBSCRIBER BASE INCREASING USAGESIZABLE AND ATTRACTIVE TELECOM MARKET:

8

Turkey Average WE Average CEE(2) (3)

74

34

24

Larg

e S

ub

scri

ber

Bas

e(1

)

Turkey Average WE Average CEE(2) (3)

5.0

2.8

1.2

Exp

ecte

d t

o G

row

at

a fa

st P

ace

As

Mo

bil

e M

ark

et is

Su

bst

anti

ally

Un

der

pen

etra

ted

78%86%

94%109%

125%134% 138%

131% 136%

India Mexico Spain USA Indonesia Italy Total WE Total CEETurkey

Low penetrationwith no competing

TowerCo

(2) (3)

Mobile Penetration (as % Population, FY16A)

Mobile Subscribers (2016A, m) Total Subscribers Net Adds (2016A-2019E,m)

Pro

life

rati

on

of

Ad

van

ced

Mo

bil

e D

evic

es...

Average Data Usage per Device (2016A, MB/Month Data Consumption)

311.500

2.700

5.800

x50

x90

x190

FeaturePhone

SmartPhone Tablet LapTop

...to

Bo

ost

Mo

bil

e D

ata

Tra

�c.

..

(GB/Month per Sub)

2013A 2016A 2020E

0,5 x2,4

X5,51,3

7,1

7,27,7

1,9

(%0,1)

%1,0

16E-19E CAGR

%3,7

...ar

e E

xpec

ted

to

Tra

nsl

ate

into

Su

stai

nab

le M

ob

ile

Rev

enu

e G

row

th (GB/Month per Sub)

Turkey WE CEE(2) (3)

330399

560

... w

hic

h C

ou

ple

d w

ith

Incr

easi

ng

Mo

bil

e V

oic

e T

ra�

c...

(Minutes of Use/Month))

2013A 2016A 202E

+20%

+40%

20.0

20.0

35.0

40.0

24.8

20.0

20.0

70.0

30.0

35.0

20.0

24.8

59.6

70.0

60.0

11

TURKEY: LTE SPECTRUM AUCTION COMPLETED IN 2015 TURKEY’S TELECOM NETWORK DESIGN REQUIRES HIGHER DENSIFICATION

10

Limited bandwidth in a key frequency providing capacity (1800MHz) results in high demand for tower

space to meet the expected surge in data tra�c2600 MHz 4.5G capacity boost layer for hot spots

Main layer for 4.5G Terminal support,capacity and coverage layer

2G/3G coverage and voice layer

4.5G main coverage layer

Mobile broadband layer for 3G 4.5G usage for mid/long-term

2100 MHz

1800 MHz

900 MHz

800 MHz

Cap

acit

yC

apac

ity

Co

vera

ge

Co

vera

ge

Traditional Network Design(Voice + Some Data)

• Traditional network topology designed to ensure high quality voice services

• Unable to adequally handle exponential growth in the demand for tra�c

Densified Network Design(High Data Tra�c)

• Higher network density required, especially in urban areas

- Smartphone penetration leading to growth of data hungry applications

- Anticipated VoLTE (Voice over LTE) adoption

Network densification on the back of limited availability of

spectrum

Regulatory framework enforcing passive

infrastructure sharing

Expected to boost increase in colocation

13

COVERAGE OBLIGATIONS TO RESULT IN A HIGHER DEMAND PER TOWER SPACE PREMIER ESTABLISHED TELECOM INFRASTRUCTURE OPERATOR

12

Licensing Date

>50% ofCountry

Population

>90% ofCountry

Population2G

Implication

3G

LTE

1998 2001

3 Years 2 Years

2003

3 Years 3 Years 2 Years 2 Years

Licensing Date

MetropolitanMunicipalities

(~77% ofPopulation)

AllProvince/

DistrictMunicipalities

(~93% ofPopulation)

2009 2012 2015

Rural Areaswith >5k

Population

2017

Rural Areaswith >1k

Population

2019

• No residual obligation

• Coverage not a competitive advantage

• Opportunity for POP consolidation

• Rural/low density coverage remain as part of obligation

• Opportunity for tower business

• Rollout starting from higher density zones

• Small cell/DAS opportunities for indoor coverage

• Infrastructure coverage requirement necessitating POP deployment

3 Years 3 Years 2 Years 2 Years

Licensing Date

99% ofHighways,Tunnels,

High SpeedRailroads

95% ofAll Double

Roads

2016 2019 2022

90% of AllConven-tional

Railroads

2024

95% of Country Population,>90% of All Province/Districts95% of Country Population,

>90% of All Province/Districts

Areas Coveredwith LTE areRegarded asCovered with

3G

15th Largest Standalone Global TowerCo(No. of towers)

5th Largest Standalone Tower Operator in Europe(No. of towers)

Largest and Only Standalone Tower Operator in Turkey(No. of towers)

144.000

40.000

29.432

25.670

23.493

16.776

16.450

15.135

14.737

12.874

12.138

11.519

11.154

10.550

10.140

8.400

7.770

7.070

6.966

6.556

15th Largest TowerCo Globally

DiF

15.135

13.893

11.519

10.550

10.140

6.966

2.618

15th Largest TowerCo Globally

Owned Towers Managed with right to sub-lease

Managed without the right to sub-lease

6.000

7.994

5.500

1.300

3.393 2.388 2.213

15

FINANCIAL OUTLOOK: FINANCIAL OUTLOOK:

14

(1)KEY INDICATORS CASH FLOW CONVERSION

Cash Flow Conversion 2016(EBITDA - CAPEX )/ EBITDA

91.7%

61.3%

79.7% 80.5%

96.6% 97.0%

23.1%

37.2%

55.4%

62.9%

81.1%

Developed Markets Emerging Markets

REVENUEGROWTH 32%

41% 52%

18% 22%

Zero debt & unleveraged balance sheet

Global Tower has dividend distribution policy with 75% payout ratio

11%

ADJ. EBITDAMARGIN(*)

NET INCOMEMARGIN

BALANCESHEET

2015 2016

Rev

enu

es T

L/m

n

Rental Non-Rental

2015 2016

251

50

331

201

56

275

Rev

enu

es T

L/m

n

Turkey Ukraine

92%

8%

17

GLOBAL TOWER’S STRATEGY TO FOCUS ON VALUE MAXIMISATION GLOBAL TOWER OFFERS COMPELLING BENEFITS TO ITS CUSTOMERS

16

Global Tower Provides a Fully Outsourced Infrastructure Solution for Wireless Operators

1 Tenant

% of Approximate Site Capex

ActiveEquipment

PassiveEquipment

Multiple Tenants

Compelling TowerCo Model Benefits Global Tower’s Customer

Reduced Capex

Focused on ImprovingProfitability and

Cash Flow Conversion

Increasing Tenancy & Land ownership M&ANetwork Expansion and

managed-to-owned conversion

Continued OrganicExpansion of theTower Portfolio

Selective and DisciplinedInorganic Growth

Outsourcing of Non-core Operations

Short Time to Market

Increased E�ciency

Highly experienced management team with strong industry know how,

Regional leader in the tower infrastructure sector with vision to become a global company

Strong cash flow generation capacity to support targeted growth and shareholder value maximization

Colocation provides significant reductions in capital costs to MNOs

Allows MNOs to focus on their main activities

Flexibility for MNOs to expand / increase capacity in a short time frame

Dedicated operator able to maintain sites

1/3

2/3Outsourced to TowerCo

1 2 3

19

INCREASE IN COLOCATION: OUR COMPETITIVE ADVANTAGE

18

TANGIBLE ECONOMIC BENEFITS

Growing Industry

Strong Financials

Visibility

Growing & profitable sector

Sizeable and attractive telecom market

Further growth in mobile data and coverage obligations

Increasing coverage, particularly for LTE, as well as usage of higher frequencies, which drive the requirement of additional POPs, are expected to create an additional POP demand of around 3k by 2025

Higher network density required, not only in urban areas but also in less populated zones

Gradual decrease of POP reutilisation expected to lead to higher POP requirement

Formation of standalone Tower Co. to accelerate the proportion of passive infrastructure sharing

Global Tower to benefit from increasing demand for tower space given size and premium location of tower assets

Solid cash flow generation; cash flow conversion close to 1

High operating leverage; EBITDA margin above 50%

Attractive dividend policy; 75% dividend payout ratio

Unleveraged balance sheet with zero debt

High revenue visibility &long-term contractual relations

Strong & credible customers with secured revenue growth

Significant Expected Demand for Tower Space… … Mainly Satisfied by Collocation on Existing TowersComparison of Collocation vs. Build-to-Suit

2G

UpfrontInvestment TRY 77 - TRY 119K

TRY 19K c. TRY 12K

2 Weeks 2-3 Months

In Place

All EquipmentOperational

Immediately at SLA

Equipment Needs to bePurchased

Ramp-up Period toReach SLA

To be Obtained

(1)-

AnnualOpex

Time toLive Status

Permits

PowerManagement

Qualityof Services

Collocation Build-to-Suit

Sources: Arthur D. Little Turkish Tower Report and Market Model, Company information. Notes: (1) Range for material and installation costs of Global Tower assets (including lattice, monopole, totem and mobile towers; excluding ecotowers).

EXPERIENCED TOP MANAGEMENT TEAM

20

CEO of Global Tower since 2016

MBA from Middlesex University

Commenced work at Ata Invest as a telecom analyst in 1996

Joined Turkcell in 2000 as a Senior Specialist at the Investor Relations division until 2004

Investor Relations and M&A Director from 2009-2016

CFO of Global Tower since 2016

Joined Turkcell in 2013 as the Financial Advisor to the chairman and the board of directors

Started working at Pricewaterhouse Coopers’s assurance department in 2006., incl. 1 year in the US

Certified public accountant and licensed independent auditor in Turkey

Chief Strategy and Investor Relations O�cer of Global Tower since 2016

Served as Vice President at the UK and Northern Ireland Representative of the Turkish Prime Ministry‘s Investment Support and Promotion Agency.

Served as the Board Member of Ari Teknokent at Istanbul Technical University between 2012 and 2015

Telco Services Sales Director of Global Tower as of August 2016

Joined Global Tower in 2013 as Telco Services Sales Manager

Radio Network and Site Acquisition Manager of Turkcell between 2008-2013

Joined Turkcell’s Radio Network and Site Acquisition unit in 2006

Non-Telco Services Sales and Business Development Director of Global Tower since 2016

Non-Telco Services Sales Manager from 2012 to 2016

Joined Global Tower in 2007 and served as Turkey Site Acquisition and Business Development Manager as well as UkrTower Manager till 2012

Held several managerial positions at Turkcell between 2000-2007

Nihat NARİNCEO

Hıfzullah ÖZKAYACFO

Dr. Hüseyin AslanChief Strategy &

Investor Relations O�cer

Barış ENGİNTelco Services Director

Murat KURANNon Telco Services &

Business Development Director

globaltower minibrosur 25x18 low - global tower ukraine, belarus and turkish republic of northern...

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