Spark New Zealand Limited · NZX:SPK
Spark New Zealand — Debt Investor Presentation (March 2024)
28 slides from Spark New Zealand's debt investor presentation, Mar 4, 2024
Slide 1: Market release: investor presentation for intended retail bond offer
MARKET RELEASE – Monday, 4 March 2024 Investor presentation in relation to intended retail bond offer As announced on 29 February 2024, Spark Finance Limited (SFL) is considering making an offer (Offer) of up to NZ$250 million (with the ability to accept oversubscriptions of up to an additional NZ$5
Slide 2: Contact information and About Spark
For more information please contact: For media queries: For investor queries: Althea Lovell Chante Mueller Corporate Relations Lead Partner Head of Investor Relations & Insurance (64) 21 222 2992 (64) 27 469 3062 althea.lovell@spark.co.nz chante.mueller@spark.co.nz About Spark As New Zealand's large
Slide 3: Intended Offer of Bonds
For personal use only Spark Finance Limited Intended Offer of Bonds Stefan Knight, Chief Financial Officer
Slide 4: Important Notice
Important Notice This presentation contains the key terms of a proposed offer by Spark Finance Limited (“SFL”) for up to $250,000,000 (with the ability to accept oversubscriptions of up to $50,000,000 at SFL’s discretion) of unsecured, unsubordinated fixed rate bonds ("Bonds") in two separate series
Slide 5: Disclaimer
Disclaimer This presentation may include forward-looking statements regarding future events and the future financial performance of Spark New Zealand Limited (“Spark New Zealand”). Such forward-looking statements are based on the beliefs of and assumptions made by management along with information c
Slide 6: Spark Overview
For personal use only Spark Overview
Slide 7: Spark at a glance
Spark New Zealand | Copyright © 2024 Spark at a glance 98% 99% For personal use only of New Zealanders of the population reached by our reached by our Internet 4G network of Things network 63 24 retail stores regional business hubs +2.7m ~700k mobile connections broadband connections ~1.8m ~5.5k Int
Slide 8: SPK-26 Strategy
For personal use only SPK-26 Strategy
Slide 9: Dual focus on resilience and growth
For personal use only Dual focus on resilience and growth
Slide 10: SPK-26 Strategy Update
For personal use only SPK-26 Strategy Update PAGE 8 Spark New Zealand | Copyright © 2024
Slide 11: Digital Infrastructure Growth Investments
Spark New Zealand | Copyright © 2024 Digital Infrastructure Growth Investments Building on the strength of Spark’s core connectivity assets, data centre and 5G Standalone investments will underpin ongoing competitive advantage For personal use only Digital infrastructure and new technology investmen
Slide 12: High-tech Roadmap
High-tech Roadmap Growing returns in mature markets while building growth markets of the future TECH MATURE EMERGING NEW For personal use only MARKETS EXISTING NEW IoT 5G STANDALONE MATTR • ~1.8m connections • $40-$60m investment FY24-26, enabling • Digital identity market forming • Established and
Slide 13: Data Centre Growth Ambition
Spark New Zealand | Copyright © 2024 Data Centre Growth Ambition Data centre investments accelerating in line with strategic ambition Supportive Exponential growth in data, continued migration to the cloud, and the advent of tailwinds generative AI boosting demand for data centre capacity For person
Slide 14: Data Centre Portfolio Overview
Spark New Zealand | Copyright © 2024 Data Centre Portfolio Overview Total built capacity at 88% contracted utilisation and significant pipeline of potential development opportunities available FACILITY STATUS SITE CAPACITY (MW) DATA CENTRE SITE CAPACITY (MW) For personal use only 100 Auckland – Taka
Slide 15: Toitū Sustainability Performance
Spark New Zealand | Copyright © 2024 Toitū Sustainability Performance Continued ESG progress secured ongoing inclusion in the Dow Jones Sustainability Australia Index (DJSI) For personal use only ECONOMIC DIGITAL SUSTAINABLE TRANSFORMATION EQUITY SPARK 5G live in 95 locations across the country, Ove
Slide 16: H1 FY24 Results Overview
For personal use only H1 FY24 Results Overview
Slide 17: H1 FY24 Results Summary
Spark New Zealand | Copyright © 2024 H1 FY24 Results Summary Market momentum and cost control underpinning adjusted revenue and EBITDAI growth in challenging environment Top-line growth(1) in challenging economic environment • Delivered adjusted revenue growth of 1.3% to $1,976 million, reflecting s
Slide 18: H1 FY24 Financial Snapshot
Spark New Zealand | Copyright © 2024 H1 FY24 Financial Snapshot SPK-26 strategy delivering adjusted revenue and EBITDAI growth $1,976m $530m $157m For personal use only 1.3% increase vs. adjusted H1 FY23 3.9% increase vs. adjusted H1 FY23 4.8% decrease vs. adjusted H1 FY23 ADJUSTED REVENUE(1)(2) ADJ
Slide 19: Telco Market Performance
Spark New Zealand | Copyright © 2024 Telco Market Performance Strong mobile growth and stability in broadband continues $510m MOBILE SERVICE REVENUE $309m For personal use only MARKET SHARE(1) 0% 21% 6.3% increase vs. H1 FY23 1.3% decrease vs. H1 FY23 MOBILE SERVICE REVENUE BROADBAND REVENUE 44% Ser
Slide 20: Digital Services Market Performance
Spark New Zealand | Copyright © 2024 Digital Services Market Performance Stabilisation in IT and growth in data centres and high-tech For personal use only ⎼ $345m $18m $35m $42m flat vs. H1 FY23 Up 38.5% vs. H1 FY23 12.9% increase vs. H1 FY23 Down 8.7% H1 FY23 TOTAL IT DATA CENTRES TOTAL HIGH-TECH
Slide 21: Net Debt
Net Debt Spark New Zealand | Copyright © 2024 Increase in net debt as TowerCo proceeds are returned to shareholders and growth capex is invested Increase in debt levels and interest rates reflecting: H1 FY23 H1 FY24 For personal use only • On-market share buy-back returning $305m of TowerCo proceeds
Slide 22: Key takeouts for H2
Spark New Zealand | Copyright © 2024 Key takeouts for H2 Spark is well positioned to build further momentum as economic conditions improve For personal use only 11 Emerging signs of economic conditions improving, with ongoing demand for data supporting core growth engine of mobile 2 2 SPK-26 on trac
Slide 23: Capital Structure
For personal use only Capital Structure
Slide 24: Capital Management Policy
Capital Management Policy Spark New Zealand | Copyright © 2024 Capital Management Framework For personal use only • Growing dividends via growth in earnings and sustainable free cash flow(1) Maximising • Dividend Policy: pay-out ratio of ~80%-100% of free cash flow on a long 1 shareholder run basis
Slide 25: Debt profile
Debt profile Spark New Zealand | Copyright © 2024 Proposed new issue will further diversify Spark’s debt profile and reduce reliance on short term funding For personal use only The proposed new issue of up to NZ$250m(2) of unsecured, unsubordinated Sources of long term debt as at 31 December 2023(1)
Slide 26: Details of the Intended Offer
For personal use only Details of the Intended Offer
Slide 27: Details of the intended offer
Details of the intended offer Spark New Zealand | Copyright © 2024 Issuer Spark Finance Limited (“SFL”) Description Unsecured, unsubordinated, fixed rate bonds For personal use only The Bonds will, if offered, be jointly and severally guaranteed by Spark New Zealand Limited and the other Guarantee G
Slide 28: Q&A
For personal use only Q&A
Spark New Zealand — Debt Investor Presentation (March 2024) on 6ix