Megaport Ltd. · ASX:MP1
Megaport — Investor Presentation (March 2018)
26 slides from Megaport's investor presentation, Mar 20, 2018
Slide 1: Share Placement & Share Purchase Plan
For personal use only Megaport Share Placement & Share Purchase Plan 20 March 2018 Megaport Limited ACN 607 301 959 Note / Strictly Private & Confidential
Slide 2: Important Information
Important Information No reliance Forward-looking statements To the maximum extent permitted by law, the information contained in this presentation is To the maximum extent permitted by law, Megaport and the Relevant Parties disclaim any For personal use only given without any liability whatsoever b
Slide 3: Important Information (cont'd)
Important Information (cont’d) Accordingly, the securities have not been and will not be offered or sold in Hong Kong other than to There are on-sale restrictions in Singapore that may be applicable to investors who acquire Securities. "professional investors" (as defined in the SFO and any rules ma
Slide 4: About Megaport
For personal use only About Megaport More information: megaport.com/investor 4
Slide 5: Megaport is a leading Network as a Service Provider
Megaport is a leading Network as a Service Provider For personal use only Virtualised networking that aligns to cloud consumption There are over 4000 commercial 195 Megaport-enabled Megaport SDN Highly distributed Cloud Service enterprise data centres data centres Private, secure, global Provider Ec
Slide 6: Extending Cloud Services to the Enterprise
Extending Cloud Services to the Enterprise Tier 2 and 3 Metros are in non-interconnection focused markets with large populations For personal use only of enterprises that enable private IT infrastructure. 6
Slide 7: Growing Global Ecosystem
Growing Global Ecosystem For personal use only 907 *Active Customers 281 **Service Providers 195 Data Centres = Service Metros which consist of multiple Megaported data centres *Customer = at least one ordered service as at February 28 2018. 7 **Available on Megaport Exchange
Slide 8: Our Competitive Advantage
Our Competitive Advantage For personal use only Megaport SDN Traditional Telco Pricing Consumption-based, pay for what you use Rigid non-competitive “locked-In” costs, no flexibility Speed Real-time provisioning (59 seconds or less) Long setup times (one week to several months) Elastic Dynamic, on-d
Slide 9: Industry Growth Trends
Industry Growth Trends Worldwide Public Cloud Service Provider Revenue Forecast For personal use only Cloud Data Centre Traffic Growth (Billions of U.S. Dollars) Zettabytes per year 27% Compound Annual Growth Rate 2016-2021 Source: Cisco Global Cloud Index, 2018. Source: Gartner (October 2017) 79% o
Slide 10: Performance Update
For personal use only Performance Update 10
Slide 11: Group KPIs
Group KPIs For personal use only Total number of data centres Total number of Ports Total number of services 165 195 1829 2401 3764 5410 JUNE 2017 FEB 2018 JUNE 2017 FEB 2018 JUNE 2017 FEB 2018 Total number of customers Monthly Recurring Revenue* Annualised Revenue** * 738 907 $1.2M $1.7M $14.6M $20
Slide 12: Growth Trends
Growth Trends 5410 What’s driving For personal use only revenue growth? Average Revenue per Port** 3764 June 2017 February 2018 2401 $667 $709 1829 $1.7M $1.2M +$42 GROWTH 165 195 The increase in services per Port directly increases DATA CENTRES MRR* PORTS TOTAL SERVICES*** Port value +18% +40% +31%
Slide 13: Growth Trends
Growth Trends Annualised Revenue Feb-18 $20.4M Ecosystem richness For personal use only drives greater service connection opportunities 3,009 Growth in services is an indicator of overall customer usage on the network Increased services per Port drives greater Monthly Recurring Revenue (MRR) growth
Slide 14: Building the Network Effect
Building the Network Effect Megaport Service Connections: For personal use only Ports Services June 2016 Dec 2016 June 2017 Dec 2017 Feb 2018 Service Connection Types: Direct Public Cloud Internet Exchange Private 14
Slide 15: Competitive Differentiation
For personal use only Competitive Differentiation 15
Slide 16: Cloud Focus and Capability
Cloud Focus and Capability AMSTERDAM STOCKHOLM For personal use only 102 Total onramps 57 Cloud regions US West 1 (Silicon Valley) Asia Pacific South US East 1 (Virginia) EU central US East US Asia Pacific SE1 (Singapore) UK South Central EU 40 new onramps since Asia Pacific SE2 (Sydney) US East Cen
Slide 17: Megaport Cloud Router (MCR)
Megaport Cloud Router (MCR) New addressable Market Virtual router For personal use only Greater connectivity Born in Existing Addressable the Cloud options and traffic Market control On-prem Rapid, private, secure Enterprises connections to one or more service providers without the need for physical
Slide 18: Enterprise Customers
Enterprise Customers For personal use only 18
Slide 19: Investment Opportunity
For personal use only Investment Opportunity 19
Slide 20: The Opportunity
The Opportunity For personal use only Megaport is the first global Software Defined Network (SDN) aligning network to cloud and virtualizes network services. Megaport services 195 data centres with 70 unique data centre operators. Megaport’s global network provides rapid, scalable, and secure connec
Slide 21: Capital Raising
Capital Raising For personal use only Offer Details Indicative Timetable Fully underwritten placement to institutions, sophisticated and professional Trading Halt and Announcement of Equity Tuesday 20 March 2018 Raising investors to raise $50 million via the issue of ~13.33 million shares (Placement
Slide 22: Use of Proceeds
Use of Proceeds A$ US$1 For personal use only Capital Expenditure Cash position at 28 Feb 2018 Network capacity upgrade (to 100GB) $12.3 $9.6 $15.4M New Locations and Platform Upgrades $8.8 $6.8 $21.1M $16.4 Ongoing Operating Costs of Network, Staff Entering new markets & Development investment $10.
Slide 23: Risks
Risks Dependence on key personnel financial performance, position and growth prospects of the Company. Megaport depends on the skills and experience of its staff and employees. With only a small number of employees, it is essential that appropriately skilled staff be Megaport’s continued ability to
Slide 24: Risks (cont'd)
Risks (cont’d) adverse media coverage. A significant impact to the reputation of Megaport Megaport currently enjoys early mover advantage in its deployed markets. could have an adverse effect on Megaport’s future financial performance and For personal use only However, Megaport may face competition
Slide 25: Risks (cont'd)
Risks (cont’d) Act (Chapter 323) and Megaport Hong Kong is required to and does hold a The management team of Megaport has diverse and global operational services-based operator licence under the Telecommunications Ordinance. experience building and operating networks outside of Australia, including
Slide 26: Thank you
Thank you For personal use only Social On the Web: ASX: MP1 /megaportnetworks Megaport.com/investor @megaport Megaport.com/newsroom @megaportnetwork