Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — Merger or Acquisition (April 2024)
32 slides from Macquarie Technology's merger presentation, Apr 16, 2024
Slide 1: Strategic Acquisition and Equity Raising
Strategic Acquisition and Equity Raising Funding Growth in our Data Centre Platform. April 2024 Authorised for release by the Board of Directors of Macquarie Technology Group Limited
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer. This presentation has been prepared by Macquarie Technology Group Limited ACN 056 712 228) (MAQ or the Group) in connection with its proposed two tranche institutional placement of new fully paid ordinary shares in the Group (“New Shares”) to raise $100,000,000 to ce
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer. Lead managers’ disclaimer The Lead Manager, together with its respective related bodies corporate, shareholders or affiliates and each of their respective officers, directors, employees, affiliates, agents or advisers (each a "Limited Party") have not authorised, per
Slide 4: Important Notice and Disclaimer
Important Notice and Disclaimer. Basis of Preparation This Presentation incorporates results on a statutory as well and non-statutory basis with financial results presented in AUD unless otherwise stated. Data used for calculating percentage movements have been based on whole actual numbers and esti
Slide 5: Strategic Acquisition of Land & Building and Equity Raising
Strategic Acquisition of Land & Building and Equity Raising Strategic Acquisition of Land and Building ● MAQ has entered into a binding agreement to acquire the Intellicentre 2 (“IC2”) and Intellicentre 3 East (“IC3 East”) land and buildings at its existing Macquarie Park Data Centre Campus (“MPDCC”
Slide 6: Strategic Acquisition of Land & Building and Equity Raising
Strategic Acquisition of Land & Building and Equity Raising Details of the Acquisition ● The purchase price, stamp duty and related transaction costs of $190 million will be funded by a fully underwritten $100 million equity raising and a $90 million data centre loan note (“Loan Note”). ● The Loan N
Slide 7: Investment Highlights
Investment Highlights ● MAQ has a high-quality revenue model and customer base. Group EBITDA ($m) – Over 95% of revenue has come from Range 108 to 111 contracted monthly recurring revenue. – Circa 60% of billings of top 20 customers are AA+ rated or better. 103.1 – Continued healthy cash conversion
Slide 8: Our Data Centre Credentials
Our Data Centre Credentials. Sydney CBD Campus Macquarie Park Data Centre Campus Canberra Data Centre Campus Intellicentre 1 Intellicentre 2, Intellicentre 3 East Intellicentre 4 Bunker & Intellicentre 5 Bunker Intellicentre 3 Super West ● We are currently developing a major data centre campus in Sy
Slide 9: Megatrends Generating Significant Tailwinds
Megatrends Generating Significant Tailwinds. ● As our economy becomes more digitised, organisations are moving their data and software applications to the cloud. Clouds live in the latest generation of data centres, like ours. Data centres are digital infrastructure along with our cloud and cyber se
Slide 10: Reaffirmed Outlook
Reaffirmed Outlook. Reaffirming FY24 EBITDA is expected to be approximately $108 to $111 million which includes Macquarie Data Centres’ EBITDA of $34 to $35 million. Continuing investment across the Group to drive future profitable growth. CS&G FY24 EBITDA margin is expected to be in line with FY23.
Slide 11: Updated Outlook
Updated Outlook. The DA and business case for IC3 Super West have been approved. Site preparation and early works are underway to prepare the Macquarie Park Data Centre Campus. Construction contract negotiations are in the final phase. Demand from the AI megatrend could result in the IT load of IC3
Slide 12: Equity Raising
(phi Equity Raisii Ts
Slide 13: Equity Raising Overview
Equity Raising Overview. ● Fully underwritten $100 million two-tranche placement comprising the issue of approximately 1.38 million new fully paid ordinary shares (“New Shares”) – Tranche 1 to raise $29.4 million utilising the Group’s available placement capacity Offer Structure under ASX Listing Ru
Slide 14: Sources and Uses
Sources and Uses. Sources $m ● Net proceeds from the Placement will be applied to the acquisition of land and building at our existing Tranche 1 proceeds 29.4 Macquarie Park Data Centre Campus from Keppel Tranche 2 proceeds 70.6 DC REIT. Loan Note 90.0 ● Strengthen the Group’s balance sheet and prov
Slide 15: Pro-Forma Balance Sheet
Pro-Forma Balance Sheet. As at 31-Dec-23 MPDCC Acquisition As at 31-Dec-23 $m (Statutory) Lease Placement1 (inc Loan Note) 2 (Pro Forma) Assets Cash and cash equivalents 10 94 (100) 4 Financial Assets 75 75 Property plant and 268 (5) 184 447 equipment Right of use assets 126 (89) 37 Financial instru
Slide 16: Indicative Placement Timetable
Indicative Placement Timetable. Event Date (2024) Trading halt and launch of Placement Tuesday, 16 April 2024 Results of Placement announced, trading halt lifted and Wednesday, 17 April 2024 recommencement of trading Settlement of Tranche 1 of the Placement Tuesday, 23 April 2024 Allotment of New Sh
Slide 17: Macquarie Technology Group
Macquarie Technology Group.
Slide 18: Business design
Business desi gn. Business Areas Percentage of Revenue and EBITDA in 1H24 What we do Value proposition Competitors People / Skill ® macquarie Revenue colocation, cloud & dedicated servers. Different applications need different types of hosting. We manage Customer Service, Specialised and Compliant H
Slide 19: Appendix 1 – Key Risks
Appendix 1 – Key Risks.
Slide 20: Key Risks
Key Risks. This following section comments on the risks associated with an investment in Macquarie Technology Group Limited (the Group) and in connection with the Placement and the associated transactions outlined in this presentation . Like any investment, there are risks associated with an investm
Slide 21: Key Risks
Key Risks. Some aspects of the Group’s business are highly regulated such as the provision of telecommunication services and the storage and Regulatory and Legislative processing of data. As these regulatory regimes evolve, opportunities and threats for the business are created and the maintenance a
Slide 22: Key Risks
Key Risks. The Group’s activities include being an owner, operator and developer of data centres in Australia. The development phase of projects involves the acquisition of sites, obtaining authority consents, securing utilities (such as power and water), design & construction activities and custome
Slide 23: Key Risks
Key Risks. General investment risks As an ASX listed Group, the Group is subject to the general market risk that is inherent in all securities traded on a stock exchange. As a result, the Group may experience fluctuations in its share price that cannot be explained by the Group’s fundamental operati
Slide 24: Key Risks
Key Risks. The Group has previously highlighted the impact of COVID-19 on global and domestic economies, and in turn, on the Group and its customers’ businesses. Although the Group’s business performance has been resilient to the external business and economic pressures Impact of COVID-19 arising fr
Slide 25: Appendix 2 – International Offer Restrictions
Appendix 2 – International Offer Restrictions.
Slide 26: International Offer Restrictions
International Offer Restrictions. This document does not constitute an offer of new ordinary shares (“New Shares”) of the Group in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 27: International Offer Restrictions
International Offer Restrictions. New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the “FMC Act”). The New Shares are not being offered or sold in New Zealand (or allotted with a view to be
Slide 28: International Offer Restrictions
International Offer Restrictions. United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2
Slide 29: Appendix 3 – Summary of Key Terms of the Underwriting Agreement
Appendix 3 – Summary of Key Terms of the Underwriting Agreement.
Slide 30: Summary of Key Terms of the Underwriting Agreement
Summary of Key Terms of the Underwriting Agreement Macquarie Technology Group has entered into an underwriting agreement with the Underwriter (Underwriting Agreement), pursuant to which the Lead Manager is acting as co-lead manager, sole underwriter and bookrunner of the Placement, subject to the te
Slide 31: Summary of Key Terms of the Underwriting Agreement
Summary of Key Terms of the Underwriting Agreement • There is an alteration of Macquarie Technology Group’s capital structure without the prior consent of the Lead Manager (except as contemplated by the Underwriting Agreement or the ASX Announcement). • Macquarie Technology Group is prevented from a
Slide 32: Summary of Key Terms of the Underwriting Agreement
Summary of Key Terms of the Underwriting Agreement The Underwriter may immediately terminate its obligations under the Underwriting Agreement if any of the following events occurs, and the Underwriter has reasonable grounds to believe and does believe that the event (1) has had, or is likely to have
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