Infotrust Ltd · ASX:ITS

Infotrust — Merger or Acquisition (April 2019)

17 slides from Infotrust's merger presentation, Apr 3, 2019

  1. Slide 1: Spirit Telecom Limited (ST1) Acquisition & Capital Raising

    Spirit Telecom Limited (ST1) Acquisition & Capital Raising April 2019

  2. Slide 2: Disclaimer

    Disclaimer IMPORTANTINFORMATION The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examination and consult the

  3. Slide 3: Transaction Overview

    Draft Transaction Overview Announcement: Spirit Telecom Limited (“Spirit”) (“ST1”) has reached an agreement to acquire LinkOne Pty Limited (“LinkOne Group”) (the “Acquisition”) including subsidiaries Anttel Communications Group Pty Ltd (“Anttel”) and Ignite Broadband Pty Ltd (“Ignite”) Complimentary

  4. Slide 4: Investor Highlights

    Investor Highlights Strategically compelling acquisition of a highly complimentary telecommunications network Immediate geographic expansion into target markets of Brisbane and Sydney Increases Points-of-Presence (PoP’s) by c.40% Strengthens Spirit’s lead generation capabilities outside of pre-exist

  5. Slide 5: Compelling Acquisition Metrics

    Compelling Acquisition Metrics (A$m) Spirit LinkOne Group(1) Pro Forma(2) Uplift % 12 months to 31-Dec-18 Revenue 16.3 3.2 19.5 19.6% Gross profit 11.7 2.2 13.9 18.8% EBITDA (underlying) 1.8 1.1 2.9 62.4% NPAT (underlying) (0.2) 0.7 0.5 nm Spirit LinkOne Group Pro Forma Uplift Towers/POP’s 115 44 15

  6. Slide 6: LinkOne Group Overview

    LinkOne Group Overview Customer Split • Established in 2008, LinkOne Group’s network commenced construction By customer numbers By revenue contribution in 2015 10% 46% • Wholesale licensed telecommunications carrier operating a 54% 90% predominantly Fixed Wireless network Residential Business • c.57

  7. Slide 7: Transaction Terms and Funding

    Draft Transaction Terms and Funding • Spirit has entered into an agreement to acquire 100% of LinkOne Group for upfront consideration of A$5.7 million comprising: Purchase price − 70% of consideration paid in cash on completion ($4.0 million) − 30% of consideration paid in scrip ($1.7 million issued

  8. Slide 8: Timetable

    Draft Timetable Indicative Placement timetable Date Trading Halt lifted and Placement announcement 10:00am Wednesday, 3 April 2019 Settlement (New Shares under the Offer) Wednesday, 10 April 2019 Allotment and Issue of New Shares under the Offer Thursday, 11 April 2019 Normal trading commences (New

  9. Slide 9: Spirit Telecom Limited Overview

    Spirit Telecom Limited Overview 8 April 2019 © Spirit Telecom Limited 9

  10. Slide 10: Who is Spirit?

    Who is Spirit? • Spirit Telecom Limited (ASX: ST1) • A fast-growing Fixed Wireless Telecommunications Carrier, supplying superfast internet and ancillary services to business and residential customers • Recognised as being Australia’s fastest overall Internet Service Provider (ISP)(1) − product lead

  11. Slide 11: Spirit Timeline

    Spirit Timeline April 2019 © Spirit Telecom Limited 11

  12. Slide 12: Spirit Business Model: Totally Non-NBN

    Spirit Business Model: Totally Non-NBN Fixed Wireless network • Speeds up to 1Gbps Primarily targeting SME/Business sector • Higher ARPU • Higher Gross Margin Growth will deliver operating leverage April 2019 © Spirit Telecom Limited 11 12

  13. Slide 13: How we differentiate

    How we differentiate Net Promoter Score (Sept/Oct 18) Overall 53 Rebill (legacy) On-net customers customers 28 71 “Net Promoter or Net Promoter Score is a management tool that can be used to gauge the loyalty of a firm's customer relationships. It serves as an alternative to traditional customer sat

  14. Slide 14: Executive Leadership Team

    Executive Leadership Team Two key operational drivers: • Chief Sales & Marketing – Driving top line growth • COO – Enabling Network and infrastructure Two key support roles: • CFO • People & Culture Leaner executive leadership team to enhance focus April 2019 © Spirit Telecom Limited 14

  15. Slide 15: H1/19 Financial Performance Summary

    H1/19 Financial Performance Summary Revenue Gross Profit Underlying1 EBITDA 1.3% increase from H1/18 9.6% increase from H1/18 77% decrease from H1/18 5.9 5.7 1.60 8.1 8.1 8.2 5.4 1.40 1.17 6.2 4.0 $ millions 5.2 $ millions 3.2 4.6 $ millions 4.2 2.5 0.70 2.2 0.58 0.42 0.36 H1/16 H2/16 H1/17 H2/17 H1

  16. Slide 16: H2/19 Outlook

    H2/19 Outlook High Speed B2B Services Bespoke High Speed Networks M&A builds • Strong Demand across SME – • Awarded $1.7 million tender to build • Focus on acquisition targets Corporate business segments a superfast network in Horsham with complementary wireless under-served • The network will allow

  17. Slide 17: © Spirit Telecom Limited

    © Spirit Telecom Limited

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