Slide 1: FY22 Full Year Results Presentation
FY22 Full Year Results Presentation 29 August 2022
Slide 2: Our evolution
Our evolution 1.0 2.0 Over ~20 years built a market-leading telco Over ~15 years built a strong technology Leading diversified communications and business business technology business • Primarily providing broadband, VOIP • Deep capability across data, voice, cloud • Targeting to be Australia’s 4th
Slide 3: Our Why, Our Values, Our Game
Our Why Our Values Our Game (Why we show up (How we change (What we’re to work every day) the game) playing for) We are in business 1. Don’t be ordinary, By 2025, we are to Change the be awesome Australia’s 4th Game 2. Think BIG largest provider of 3. No Bullsh*t communications & technology 4. Be go
Slide 4: Delivering on our growth strategy in FY22
Delivering on our growth strategy in FY22
Slide 5: Growing across all key metrics
Growing across all key metrics… $546.9m $39.4m $105.5m Revenue EBITDA before Business transaction costs Revenue1 56% 107% 142% ($350.3m FY21) ($43.5m FY21) ($19.1m FY21) 90% 584,793 6.46% of the Aussie fibre Broadband Share of nbn services 2 network complete with services (4.74% as at 30 June 20
Slide 6: ...with continued strong and profitable growth
…with continued strong and profitable growth Growing Revenue Growing EBITDA and increasing EBITDA margin 600 40 8% 35 7% 500 30 6% 400 25 5% $ millions $ millions 300 20 4% 15 3% 200 10 2% 100 5 1% - - 0% FY20 FY21 FY22 FY20 FY21 FY22 Residential Business Wholesale OTW Residential Business Wholesale
Slide 7: Evolving into a communications and technology business at scale
Evolving into a communications and technology business at scale Business Over the Wire Revenue $67.0m 54% Revenue $38.5m EBITDA $10.8m 62% EBITDA $9.6m ARPC $188.07 p/m ARPC $742.36 p/m 3.5 months contribution since owned by ABB Residential Wholesale Revenue $415.0m 36% Revenue $26.4m EBITDA $17.4m
Slide 8: Exceeded FY22 EBITDA guidance
Exceeded FY22 EBITDA guidance
Slide 9: Strong growth in revenue and earnings
Strong growth in revenue and earnings FY22 FY21 Change • Residential revenue increased by 36%, $m $m % business 54% Revenue 546.9 350.3 56% • Wholesale revenue increased by $24.7m Network and hardware expenses (385.6) (252.0) 53% and OTW contributed $38.5m Gross margin 161.3 98.3 64% • Gross mar
Slide 10: Balance sheet
Balance sheet 30 June 2022 30 June 2021 • 19 days of revenue in trade debtors $m $m • Plant & equipment increased with the OTW Cash and cash equivalents 47.7 57.0 acquisition and $30m of fibre build spend Trade and other receivables 37.2 16.9 • Right of use assets increased due to Plant and equipm
Slide 11: Strong growth in operating cashflow
Strong growth in operating cashflow FY22 FY21 Change • Strong EBITDA to cash conversion $m $m % • 80% of consideration for OTW was in cash Receipts from customers 595.1 384.7 55% with the balance scrip Payments to suppliers & employees (552.9) (359.2) 54% • Payments net of $9.5m cash acquired Ne
Slide 12: Rapid growth in Business, Enterprise & Government and Wholesale
Rapid growth in Business, Enterprise & Government and Wholesale
Slide 13: Business, Enterprise & Government
Business, Enterprise & Government Consistent strong growth half on half Broadband Connections • 24,002 business, enterprise & government net broadband 65,000 additions resulting in 68% growth for the year 55,000 • Over 1 million numbers and 120 million minutes per month on 45,000 the NetSIP voice
Slide 14: Wholesale
Wholesale Broadband Connections Rapid growth as the business 70,000 quickly scales 60,000 • Developed a new capability to provide white-label broadband 50,000 and voice services in 6 months 40,000 • End-to-end support for retail providers, including network provisioning, hardware dispatch, customer
Slide 15: Residential broadband
Residential broadband Broadband Connections Sustained growth in a highly 500,000 competitive market 450,000 400,000 • Continued year-on-year growth in share of connections 350,000 • YoY growth in share of new orders by +1% from 8% to 9% 300,000 • H2 FY22 share of orders steady at 9% despite aggre
Slide 16: Mobile services
Mobile services Mobile Services 40,000 35,000 Mobile repositioning is accelerating 30,000 growth GR 25,000 CA • 12,290 net mobile additions in FY22, up 48% YoY % 20,000 83 • Mobile continues to be a growth opportunity for ABB, with repositioned offers in market – launched June 22 – to support furt
Slide 17: Growing market share nationally
Growing market share nationally National market share of NBN services 7.0% 6.5% 5.3% 6.0% 6.3% 5.5% 5.0% 6.8% 4.5% 5.9% 5.6% 4.0% 7.8% ACT 3.5% 8.0% 3.0% Market share 2.5% by state 3.2% 2.0% Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Steadily growing towards 10% market share • Strong brand awa
Slide 18: Marketing focused on ABB's value proposition
Marketing focused on ABB's value proposition 18.
Slide 19: Improved customer acquisition cost and strength of brand
Improved customer acquisition cost and strength of brand Rising awareness and consideration underpins future growth Growth in marketing spend with • Year-on-year unprompted brand awareness has grown increased use of promotions to drive +5pp from 7% FY21 to 12% FY22 broadband growth, mobile retention
Slide 20: It's all about customer experience and value
It's all about customer experience and value
Slide 21: Focused on team and customer engagement
Focused on team and customer engagement Australian Service 82% 8.1/10 Excellence of our staff say this Customer satisfaction Award Winner is a great place to work (8.4/10 FY21 average) (86% FY21) Customer Service Organisation of the year (Large) for 2020 & 2021 21. aussiebroadband.com.au
Slide 22: High levels of customer engagement
High levels of customer engagement 4.5 Stars from 6,821 reviews 4.2 Stars from 2,799 reviews 4.6 Stars from 6,808 reviews 22.
Slide 23: Awards reflect ABB's focus on product innovation and customer service
Awards reflect ABB's focus on product innovation and customer service CUSTOMER SATISFACTION AWARDS ROY MORGAN 2021 23. aussiebroadband.com.au
Slide 24: Churn remained steady on FY22 view
Churn remained steady on FY22 view • FY22 ABB residential & business customer churn (ex Wholesale) • Whilst our long term churn profile has remained stable, remained steady at 1.1% ABB has introduced a number of initiatives to try and improve this over time including: • Peak in January and April 2
Slide 25: Well positioned to continue growth trajectory
Well positioned to continue growth trajectory
Slide 26: Aspirations for 2025
Aspirations for 2025 Thriving and talented people Exceptional customer service • One of the best places to work in Australia • Multi-award winner • Staff say this is a place they belong • Customers love and promote us • Long term client relationships Delivering sustainable growth Innovative produ
Slide 27: Successfully integrating Over The Wire into Aussie 2.0
Successfully integrating Over The Wire into Aussie 2.0 • Added a wide range of business, enterprise, government and wholesale customers • Significantly expanded product offering in the business, enterprise & government and wholesale segments, in particular leveraging the tier 1 voice network, OTW-o
Slide 28: Proprietary software supporting customer growth, retention & profitability
Proprietary software supporting customer growth, retention & profitability Industry leading automation Cutting edge enablement and control for data services platform for voice services • Single platform that enables businesses and partners to qualify, • NetSIP is the backbone of ABB's voice platform
Slide 29: Continuing the fibre build
Continuing the fibre build Additional opportunities to unlock Aussie fibre stats: further fibre savings in FY23 and FY24 • 83 NBN POIs, 22 data centres, and 77 multi-storey buildings are connected to Aussie fibre today • Over 90% of the original fibre build is now complete • A further 5 POIs and 1
Slide 30: Building better communities
Building better communities Aussie Broadband is aiming to be a Certified B Corporation, as part of our goal to benchmark ourselves and improve in ESG (environmental, social, governance) practice • We have made our first submission for assessment, exceeding the initial threshold to progress further
Slide 31: Proposed NBN long term pricing likely to have a positive impact
Proposed NBN long term pricing likely to have a positive impact • Proposed NBN Co SAU is still a work in progress and Aussie Broadband continues to constructively engage with NBN Co, the ACCC, industry and government • Latest update (August 2022) is a positive step forward • CVC to be phased out ov
Slide 32: FY23 Outlook
FY23 Outlook YTD trading Key drivers to EBITDA in FY23 • First 8 weeks’ total net adds (gross sales, less churn) of 15,332 • Incremental uplift in connections in 2H FY22 flowing through for a full year across business, enterprise & government, residential and • Annualised contribution from Over the
Slide 33: In closing
In closing • FY22 delivered continued growth across all key metrics, exceeding EBITDA guidance • ABB is successfully evolving into Aussie 2.0 • Our ambition is to be Australia’s 4th largest provider of communications & technology services • Rapidly growing business, enterprise & government, and whol
Slide 34: Thank you. Any questions?
Thank you. Any questions? We» Aussie = Broadband
Slide 35: Appendices
Appendices r/ Aussie = Broadband
Slide 36: NBN proposed long term pricing
NBN proposed long term pricing Current March 22 SAU August 22 SAU Bundle Price CVC Inclusions Bundle Price CVC Inclusions Bundle Price CVC Inclusions 12/1 Voice Only $22.50 0.150 $12.00 0.000 $12.00 0.000 12/1 Broadband $22.50 0.150 $26.00 0.000 $24.40 0.000 25Mbps $37.00 1.600 $25.00 0.100 $26.00 0
Slide 37: ABB fibre footprint in VIC
ABB fibre footprint in VIC South Morang POI Next DC M2 Tullamarine POI Reservoir POI Thornbury POI Exhibition POI Next DC M1 Kings Park POI Vocus DC Equinix ME1 North Ringwood POI Balwyn POI Lilydale POI Footscray POI Kew POI Nunawading Depot POI Hawthorn POI Caulfield POI Port Melb C Depot POI St K
Slide 38: ABB fibre footprint in NSW & ACT
ABB fibre footprint in NSW & ACT Windsor POI Asquith Depot POI Castle Hill POI NextDC C1 Penrith POI Blacktown POI Frenchs Forest POI Next DC S2 Next DC S1 Eastern Creek Pendle Hill POI Depot POI Parramatta POI Chatswood POI Ryde POI St Leonards POI Mosman POI Civic POI Global Lidcombe POI Switch Gl
Slide 39: ABB fibre footprint in QLD
ABB fibre footprint in QLD Petrie POI Aspley Depot POI Aspley POI Next DC B2 Over The Wire Next DC B1 Brisbane Woolloongabba POI Bundamba POI Camp Hill POI Ipswich POI Acacia Ridge Goodna POI Depot POI Eight Mile POI Stacks Creek POI Polaris DC Stats: 22 NBN POIs 4 Connected data centres 7 Connect
Slide 40: ABB fibre footprint in WA & SA
ABB fibre footprint in WA & SA Wangara Depot POI Elizabeth POI Mullaloo POI YourDC Edinburgh Doubleview POI Next DC P1 Perth Bassendean POI Greenfields Depot POI Modbury POI Next DC P2 Subiaco POI Adelaide Bentley Depot POI Prospect POI Applecross Cannington POI POI YourDC Edwardstown POI Hawthorn H
Slide 41: Disclaimer
Disclaimer Not an offer Future performance The material contained in this presentation is for information purposes only and is intended to be general Forward-looking statements are statements about matters that are not historical facts. Forward-looking background information on Aussie Broadband Limi
Slide 42: Authorised for release by the Aussie Broadband Board
Authorised for release by the Aussie Broadband Board. For investor enquiries please contact Ronn Bechler on 0400 009 774 or investors@team.aussiebroadband.com.au For media enquiries please contact Alex Walker on 0448 110 962 For registry queries please contact Link Market Services on 1300 554 47