5g Networks Limited · ASX:5GN
5g Networks — Non-Deal Roadshow (June 2017)
38 slides from 5g Networks's roadshow presentation, Jun 14, 2017
Slide 1: Investor Roadshow Presentation
Melbourne IT Ltd 14 June 2017 ABN 21 073 716 793 ACN 073 716 793 Level 4, 1-3 Smail Street Ultimo NSW 2007 Australia www.melbourneit.info MELBOURNE IT LTD (ASX: MLB) INVESTOR ROADSHOW PRESENTATION Attached is a copy of the presentation to be delivered at the Investor Roadshows which will be held in
Slide 2: Investor Strategy Days
Investor Strategy Days 14 & 15 June 2017
Slide 3: Agenda
Investor Strategy Days Agenda • Strategy overview Martin Mercer • Enterprise Services unwrapped Peter Wright • SMB growth through solutions Emma Hunt • Bringing our purpose to life • Conclusions and Q&A 2
Slide 4: Purpose and Vision
Purpose and Vision • We fuel our customers’ success through the smart use of technology. • We aspire to be Australia’s most impactful digital technology partner. 3
Slide 5: Priorities: mission accomplished
Priorities: mission accomplished We have achieved the three priorities that underpinned our turnaround. The future is all about growth. Priority Status Comment We have repaired the legacy domains and hosting business and succeeded in developing a new “managed marketing solutions” Return SMB to Growt
Slide 6: Growth: consistently strong growth
Growth: consistently strong growth 3YR 3YR CAGR CAGR 28.2 69% 28.4 70% 22.0 16.5 16.3 12.8 5.8 5.8 3YR CAGR 3YR 14.3 32% CAGR 14.2 24% 10.7 11.5 8.9 9.5 7.5 6.2 H2 H1 Underlying financial information presented adjusts for one-off and non-recurring costs and the pro forma impacts of acquisitions and
Slide 7: FY 2017 Outlook: strong growth to continue
FY 2017 Outlook: strong growth to continue Measure Range ⇳ %1 Comment Guidance has been revised up (original guidance range was Underlying EBITDA $37.5M - $41.5M 39% $31M - $34M) following the acquisition of WME Group. Guidance has been revised up (original guidance range was Underlying EPS $0.17 -
Slide 8: Four major growth opportunities: execution underway
Four major growth opportunities: execution underway 1 Strong market growth (ES) 2 Enhancing cross- sell (ES) 3 Increasing ARPU (SMB) 4 Growing market share (SMB) 7
Slide 9: ES: strategy and execution
ES: strategy and execution ENTERPRISE SOLUTIONS. OUR SOLUTIONS.
Slide 10: Digital Solutions: an attractive and strongly growing market
Digital Solutions: an attractive and strongly growing market CAMSS foundation digital technologies CAMSS will grow at 11.2% in 2017 $13.5B market in Australia Non-CAMSS will decline at -5.8% Total Cloud $8.8B 23.2% Growth $B Total Analytics Total Mobility $7.1B $2.8B 9.1% Growth 19.1% Growth Total S
Slide 11: Execution: capturing revenue synergies
Execution: capturing revenue synergies Mobile (Outware Mobile) Data & Analytics (Infoready) June 2016 May 2017 Cloud & Managed Services 10
Slide 12: SMB: strategy and execution
SMB: strategy and execution 11
Slide 13: Marketing Solutions: an attractive and rapidly growing market
Marketing Solutions: an attractive and rapidly growing market SMB Growth 90% SOLUTIONS MARKET from Solutions • Customers prepared to pay for solutions that meet a need or solve a problem • Highly fragmented market with no major competitor in Australia • Market growing at 20%+ per annum TOTAL • Avera
Slide 14: WME & MLB: a powerful combination
WME & MLB: a powerful combination MLB1 WME Group Combined Customer Metrics Customers ~3,5002 ~1,9002 ~5,400 The acquisition of WME Group ARPU ~$1,800pa ~$12,000pa ~$5,400pa accelerates the Capabilities transformation of Web Design MLB’s SMB division to a SEO leading provider PPC of managed marketing
Slide 15: Execution: driving ARPU growth
Execution: driving ARPU growth 1. IPSOS: Melbourne IT Customer Web Journey Study 4. IPSOS report 14 2. IPSOS report 3. IPSOS report
Slide 16: Summary
Summary 1. Turnaround complete; • $8.5M of synergy savings and clear line of sight to the remaining $1.5M, • SMB enters 2017 with good organic growth driven by strong performance in new solutions products, • ES tripled in size in past three years, in 2016 revenue grew 73% and EBITDA 87%, enters 2017
Slide 17: Enterprise Services
Enterprise Services Peter Wright 16
Slide 18: ES: Purpose
ES: Purpose We fuel our customers’ success through the smart use of technology. We aspire to be Australia’s most impactful digital technology partner. Enabling our customers to deliver new services to market that make people’s lives better through the use of digital tech. 17
Slide 19: ES: Market facing solutions
ES: Market facing solutions Mode 2 + CAMSS = Differentiated customer solutions Bimodal IT = Marathon Runners + Sprinters Think Think Sprinter Marathon Runner CAMMS – Foundations of Digital Tech Cloud Analytics Mobile Security Social Source: Gartner Source: Gartner Source: IBM 18
Slide 20: Almost every Australian uses a service that MLB has developed
Almost every Australian uses a service that MLB has developed in partnership with its customers Transport for NSW Dominos Pizza Education Queensland 19
Slide 21: ES: facts and figures
ES: facts and figures Successful reinvention. A provider of complete digital solutions with for large companies 1 and government customers with more than 400 employees across Melbourne, Sydney, and Brisbane 2 Strong Growth, underlying EBITDA growing at +20%pa Expertise: Outware founders retained; In
Slide 22: Long term partnerships with customer BU's
Long term partnerships with customer BU’s 21
Slide 23: Market facing partnerships reward our customers and MLB
Market facing partnerships reward our customers and MLB Continuous Value Delivery 22
Slide 24: Managing revenue risk through ongoing services and customer diversity
Managing revenue risk through ongoing services and customer diversity Recurring, Repeatable Project and One Diversified Revenue Contribution From time project Revenue - 2016 Clients 23
Slide 25: Supporting Growth: The structure to scale
Supporting Growth: The structure to scale 474 Headcount growth: 187 2015 328 2016 2017 Our expertise in the foundational CAMMS practices enables us to embrace new Emerging Technologies technologies without additional org complexity Mobile Analytics Cloud Managed Services supports the continuous valu
Slide 26: Today you're going to see……
Today you’re going to see…… 2 Customer Example: Customer Example: 1 End to end digital solution Seeking to differentiate with new services 3 Customer Example: Building customer loyalty 4 Customer Example: Keeping ahead of the market 25
Slide 27: SMB
SMB Emma Hunt 26
Slide 28: SMB: Purpose
SMB: Purpose We fuel our customers’ success through the smart use of technology. We aspire to be Australia’s most impactful digital technology partner. We want every business to succeed online 27
Slide 29: SMB
SMB We help businesses develop the right online presence and marketing activities to attract new customers to their business, or develop deeper relationships with their existing customers. We will sell them their domain name, we will build their website, and we will manage their online marketing cam
Slide 30: SMB: facts and figures
SMB: facts and figures 1 More than 450 employees (300 12 months ago) with offices in Melbourne, Sydney, Brisbane and Canberra 2 Largest Australian domain name and web hosting provider, with more than 40% market share 3 We have helped fuel the success of more than 600,000 Australian SMB customers 4 A
Slide 31: Digital Solutions: working the lifecycle
Digital Solutions: working the lifecycle WME ARPU of $12k - 10% of MLB base- 1. IPSOS: Melbourne IT Customer Web Journey Study 30 2. “Typical” DIFM customer with average attach rates on digital marketing services spends $1,742pa with us
Slide 32: Execution: maintaining yield despite mix change
Execution: maintaining yield despite mix change 31
Slide 33: Today you're going to see……
Today you’re going to see…… 1 New customer evolving online 2 Long-term domain customer looking for leads New customer 3 building an online business 4 New solutions customers 32
Slide 34: Bringing our purpose to life: customer stories
Bringing our purpose to life: customer stories 33
Slide 35: Q&A
or MELBOURNE IT... Q&A
Slide 36: Melbourne IT – 21 years
Melbourne IT – 21 years 35
Slide 37: Glossary
Glossary Capex Capital expenditure Enterprise Services, a division of the Melbourne IT Group focusing on cloud, mobile and data ES analytics services for enterprise customers FY15 Financial year ended 31 December 2015 FY16 Financial year ended 31 December 2016 FY17 Financial year ending 31 December
Slide 38: Glossary (cont'd)
Glossary (cont’d) Net Profit after Taxation - A non-IFRS financial metric included in this presentation that is relevant for users understanding the underlying performance of the Melbourne IT Group. Underlying NPAT Underlying NPAT adjusts for one-off and non-recurring costs and the pro forma impacts