Slide 1: Superloop Limited (ASX:SLC)
Superloop Limited (ASX:SLC) 22 February 2023
Slide 2: Disclaimer
Disclaimer No reliance No offer to acquire Superloop shares To the maximum extent permitted by law, the information contained in this presentation is given without any The information in this presentation is not an offer or recommendation to purchase or subscribe for securities liability whatsoever
Slide 3: 1H FY23 Highlights
1H FY23 Highlights Underlying Operating Total Revenue1 Customers4 EBITDA2 Cash Flow3 $148.9M $12.6M $13.0M 296k 31.7% 88.8% 103.5% 42.3% 28.0% organic conversion 1. Based on continuing operations and inclusive of Other Income. The 1H FY22 prior comparative period excludes the contribution from disco
Slide 4: Strong revenue growth across all segments
Strong revenue growth across all segments1 Consumer (A$M) Business (A$M) Wholesale (A$M) 2 Year CAGR : 130.2% 2 Year CAGR : 73.9% 2 Year CAGR : 16.7% 1H FY23 vs. 1H FY22 Growth : 31.4% 1H FY23 vs. 1H FY22 Growth : 34.7% 1H FY23 vs. 1H FY22 Growth : 21.1% 77.9 21.8 48.1 20.3 71.6 44.8 18.0 59.3 16.0
Slide 5: 1H FY23 Gross Margin
1H FY23 Gross Margin1 Total Group Consumer Business Wholesale Gross Margin Gross Margin Gross Margin Gross Margin $49.5M $19.3M $17.4M $12.8M Gross Margin Gross Margin Gross Margin 33.5% Gross Margin Percentage 24.7% Gross Margin Percentage 36.1% Gross Margin Percentage 58.9% Gross Margin Percentage
Slide 6: Total Customers
Total Customers1 • Total number of customers utilising the Superloop Network has increased 42.3%, strong growth across all segments. • Churn remains stable at around industry average. • Full year customer numbers will include the addition of 50,000 MyRepublic customers - migration completed 21 Febru
Slide 7: Rebranding underpins future growth
Rebranding underpins future growth • Superloop's turnaround has involved dramatic simplification of the business, portfolio optimisation, channel development and asset monetisation. Brand evolution is the natural next step for the company. • Core to our plan to grow our market share to 5% is having
Slide 8: Simplification and Portfolio Optimisation
Simplification and Portfolio Optimisation Scale Acquisition Scale Acquisition ✓ >100,000 Customers ✓ 50,000 Customers ✓ Offshore Centre of Excellence ✓ Migration completed in 3 weeks ✓ EBITDA Accretive ✓ Leveraging Infrastructure on Demand ✓ Realised >$6M in Synergies since acquisition ✓ Network syn
Slide 9: Improving cost to serve via digital transformation + super customer experience
Improving cost to serve via digital transformation + super customer experience Introduced Consolidated stack Improved Reinvigorated Digital Products into Tier 1 systems Support with AI digital: website, Making customer experience super, enabled by portal, app Tier 1 cloud services + internal innovat
Slide 10: Fixed wireless strategic review concludes with divestment of underperforming assets and cash optimisation
Fixed wireless strategic review concludes with divestment of underperforming assets and cash optimisation Pre-Review Phase 2 - Optimisation 1 ~$2.0M Fixed Wireless product cash flow outlook (post lease costs) 2H FY23 EBITDA declining on path to negative negative impact from Maximise efficiencies on
Slide 11: Segment Update
1H FY23 Segment Update
Slide 12: Consumer
Consumer Consumer Subscriber Numbers CY 20223 192,338 • 24.1% net subscriber growth for the 12 months 166,131 ended 31 Dec 2022, 70% of which was in 1H FY23 • NBN market share up to 2.3%, sharing lead position for fastest growing NBN Retail Service Provider in Q1FY23 1 • Gross Margin 24.7% maintaine
Slide 13: Business
Business Business Revenue and Gross Margin (A$M) 70 30.1% 32.4% 36.1% 42.0% • Strong performance in student accommodation with 44.3% 60 38.0% return of international students post COVID, growth in 17.4 22.0% core internet/data products and capturing market 50 14.5 2.0% opportunity in security. 40 10
Slide 14: Wholesale
Wholesale Revenue and Gross Margin (A$M)1 Wholesale 40.0 80.0% 67.8% 65.5% • Superloop Connect nbn platform 58.9% 35.0 71.2% 60.0% • fastest growing product 30.0 61.7% 12.2 13.3 12.8 • Launched September 2021 25.0 40.0% 12.2 • 35k broadband aggregation customers 20.0 9.8 11.2 20.0% as of 31 Dec 2022
Slide 15: Financial Performance
1H FY23 Financial Performance
Slide 16: Gross Margin from continuing operations
Gross Margin from continuing operations 33.5% Gross Margin Bridge A$M 0.6 $49.5 Gross Margin percentage • Margin expansion from 31.3% in the 6.6 PCP to 33.5% 12.8 6.9 • Limiting cost expansion where possible $35.41 12.2 17.4 10.7 $49.5M 19.3 12.4 Total Gross Margin GM 1H FY22 Consumer Business Whole
Slide 17: Half on Half Underlying EBITDA trend for continuing operations
Half on Half Underlying EBITDA trend for continuing operations Underlying EBITDA Bridge (A$M) 1H FY21 2H FY21 1H FY22 2H FY22 1H FY23 Underlying EBITDA from continuing operations by half (A$M) 8.2 10.4 9.1 16.3 12.6 Reported Underlying EBITDA 1H 2H (3.8) (3.8) (2.4) (2.3) - 14.0 Discontinued Operati
Slide 18: Operating Expenses
Operating Expenses A$(k) 1H FY23 1H FY22 % Change Employee Expenses 23,652 19,392 22.0% • Non-Marketing Expenses as a percentage of total revenue has fallen from 23.3% to 20.8% Professional fees 1,202 1,117 7.6% • Marketing as a percentage of total revenue Board Costs 639 427 49.6% has increased fro
Slide 19: Performance from continuing operations
Performance from continuing operations A$M 1H FY23 1H FY22 % Change • Strong revenue growth across all three segments Revenue 147.8 113.0 30.8% • Organic revenue growth of 28.0% (ex acquisitions Cost of Goods Sold (98.4) (76.8) (28.2%) of Acurus, VostroNet and discontinued operations Gross Margin 49
Slide 20: Cash flow and Liquidity
Cash flow and Liquidity • Strong cash conversion at 103.5% impacted by some timing of Cash Flow ($k) for the 6 months ended 31 Dec 2022 31 Dec 2021 customer receipts from 2H FY22 and accrued expenses not yet paid Net cash inflow from operating activities 10,667 (2,748) • Ample debt capacity with 0.7
Slide 21: FY23 Outlook
FY23 Outlook
Slide 22: 1H FY23 vs. FY23 Underlying EBITDA estimate
1H FY23 vs. FY23 Underlying EBITDA estimate1 ~1 ~2 – 2.5 ~2 - 3 ~2 33 - 36 ~5 - 6 A$M 12.6 12.6 1H FY23 Duplicate 1H Organic incl. Uniti VostroNet MyRepublic Cost Control Fixed Wireless FY23 Underlying Underlying FY23 Underlying EBITDA Guidance EBITDA EBITDA On track to meet underlying EBITDA guidan
Slide 23: Looking forward
Looking forward Strong momentum in customer Continue to extract value from historical Grow and execute on white label and growth. Expect 2H FY23 customer M&A and digital transformation FTTP opportunities growth at similar levels to 1H FY23 Optimise Fixed Wireless business Deliver super customer On t
Slide 24: Appendices
Appendices
Slide 25: Last 5 halves Gross Margin – Segment Breakdown
Last 5 halves Gross Margin – Segment Breakdown A$k 1H FY23 2H FY22 1H FY22 2H FY21 1H FY21 REVENUE Consumer 77,907 71,575 59,309 20,144 14,678 Business 48,149 44,788 35,734 13,433 15,900 Wholesale 21,801 20,329 17,996 15,773 15,954 Discontinued - 5,968 6,788 8,109 6,733 TOTAL REVENUE 147,857 142,659
Slide 26: Group Income Statement – continuing operations
Group Income Statement – continuing operations A$k 1H FY23 1H FY22 Consumer Business Wholesale TOTAL Consumer Business Wholesale TOTAL Revenue 77,907 48,149 21,801 147,857 59,309 35,734 17,996 113,039 Cost of Goods Sold (58,632) (30,783) (8,963) (98,378) (46,886) (24,970) (4,910) (76,766) Gross Marg
Slide 27: Balance Sheet
Balance Sheet Balance Sheet ($k) 31 Dec 22 30 Jun 22 Cash & Cash Equivalents 24,045 83,133 Property, Plant & Equipment 123,852 127,271 Indefeasible Rights of Use 77,439 59,373 Other Intangible Assets 60,861 60,567 Goodwill From Acquisitions 221,067 181,312 Other Assets 42,200 42,015 TOTAL ASSETS 549
Slide 28: Customer number definition
Consumer Unique customers on various access technologies such as nbn™, Uniti, Superloop Fixed Wireless and mobile. A single customer with multiple services (such as broadband, VoiP and mobile) only counts as a single customer. Business Unique end business locations on various access technologies suc
Slide 29: Superloop Limited
Superloop Limited investor@superloop.com https://investors.superloop.com