NetLink NBN Trust · SGX:CJLU
NetLink NBN Trust — Shareholder Meeting (July 2018)
12 slides from NetLink NBN Trust's shareholder meeting presentation, Jul 25, 2018
Slide 1: Annual General Meeting
Annual General Meeting 25 July 2018 The joint issue managers of the initial public offering and listing of NetLink NBN Trust were DBS Bank Ltd., Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch. The joint underwriters of the initial public offering and listing of NetLink NBN Trust
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in NetLink NBN Trust (the “Trust” and the units in the Trust, the “Units”
Slide 3: Overview
Overview Key Highlights Financial Snapshot • Sole appointed “Network Company” Variance $m FP18(1) vs Forecast for Singapore's Next Gen NBN • Resilient business model generates Revenue 228.6 (1.8%) long-term, predictable cash flows EBITDA 167.3 3.8% through: • Growing demand for fibre EBITDA Margin 7
Slide 4: Fibre is a critical infrastructure enabling Singapore's Next Gen NBN
Fibre is a critical infrastructure enabling Singapore’s Next Gen NBN Fibre is the medium of choice for delivering #1 broadband services Fibre capacity is About 9 out of 10 scalable homes in Singapore has a fibre termination FIBRE IS point installed ‘FUTURE PROOF’ Fibre is used to Fibre broadband sup
Slide 5: Our network
Our network 1,192,493 43,855 835 End-Users End-Users Connections * Figures are as at 31 Mar 2018 ~89% share of ~34% share of residential market non-residential market 5
Slide 6: A resilient business model
A resilient business model Fibre Business Revenue (84.9%) Ancillary Revenue (15.1%) NLT Residential Non- NBAP and Co-Location Installation Ducts and Central Connections Residential Segment and Other Related Manholes Office Connections Fibre Revenue Revenue Service Revenue % of Connections Revenue FP
Slide 7: Growth opportunities
Growth opportunities In the next 5 years 300,000 Residential homes Increasing Non-residential NBAP demand not on fibre broadband & market share from 34% from Smart new household formations Nation, IoT and mobile Residential and Non-residential Beyond the next 5 years Smart 5G Mobile IoT technology N
Slide 8: Strong balance sheet to support growth
Strong balance sheet to support growth As at 31 Mar 2018 • 2.62% p.a. average effective interest rate Total Debt $591m • 86% of interest rate exposure is hedged Cash Balance $166m • $219m of remaining undrawn loan Gross Debt/EBITDA(1) 2.5x facilities Interest Coverage(1) 9.8x (1) Ratios calculated b
Slide 9: Attractive distribution yield with low risk
Attractive distribution yield with low risk NetLink NBN’s Distribution Yield vs Other Investments 1 7% 6.2% 6% 5.5% 5% 4.0% Yield (%) 4% 3% 2.5% 2.3% 2.5% 2% 1% 0.4% 0% • Resilient business model with recurring, predictable and regulated revenues • Customers are telcos with stable pool of fibre broa
Slide 10: Unit price performance since IPO
Unit price performance since IPO Unit price has maintained its value well relative to Singapore telecoms industry 0.95 0.90 0.85 0.80 0.75 0.70 0.65 0.60 0.55 0.50 STI Index Netlink NBN Singtel M1 Starhub Source: Bloomberg as at 29 Jun 2018 10
Slide 11: Well-positioned to deliver long-term value and growth
Well-positioned to deliver long-term value and growth 1 Critical infrastructure enabling Singapore’s Next Gen NBN Resilient business model with transparent, predictable and regulated revenue 2 stream 3 Sole nationwide provider of residential fibre network in Singapore Well-positioned to benefit from
Slide 12: Thank You
Thank You 12