Slide 1: H1 FY19 Results & Capital Raise
H1 FY19 Results & Capital Raise Investor Presentation Monday 25th February 2019 Our vision is to be the most trusted enabler of connectivity and managed networks in Asia Pacific Superloop H1 FY19 1 Results & Capital Raise Not for distribution into US or to US persons
Slide 2: Disclaimer
Disclaimer No reliance To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Superloop Limited (Superloop) or any of its related bodies corporate or their respective directors, officers, partners, employees,
Slide 3: Founder quote: scalable, repeatable and profitable services
“We are building a business that is focused on scalable, repeatable and profitable services based on a core portfolio of on-net connectivity products.” BEVAN SLATTERY - FOUNDER Superloop H1 FY19 Results & Capital Raise
Slide 4: CEO quote: nearing completion of transition phase
“We are now nearing completion of the transition phase and entering the leverage phase which will start to generate significant returns with expected strong growth in gross margin.” DREW KELTON - CEO Superloop H1 FY19 Results & Capital Raise
Slide 5: Summary of H1 FY19 Results & Capital Raise
Summary of Results & Capital Raise H1 FY19 • $60.3m Revenue, up 18% year on year (like-for-like adopting AASB15 retrospectively) • $4.5m EBITDA vs $7.5m in the previous corresponding period on a like-for-like basis; reflecting Results a) the change in focus from managed services to connectivity and
Slide 6: Over the past 3 years we have created a truly Asia Pacific network
Over the past 3 years we have created a truly Asia Pacific network 2016 2019 378 km owned1 Fibre connected to 74 data centres & offices 758 km of owned1 Fibre connected to 275 data centres & offices $67 million carrying value of Network Assets (PPE) $218 million carrying value of Network Assets (PPE
Slide 7: Where we started in 2016
Where we started in 2016 Metro fibre networks with a small footprint Customer Segment Access Network Domestic Network Int’l Network Internet 24 SG Data centres & offices 2016 HK Data centres & offices Owned National Fibre, Subsea World Metro Fibre Backhaul & Cable Wide Web IP Networks Network 50 AU
Slide 8: The Superloop Advantage in 2019
The Superloop Advantage in 2019 Connecting Asia Pacific with low-latency, high speed secure bandwidth Customer Segment Access Network Domestic Network Int’l Network Internet 59 SG Data centres & offices 2019 29 HK Data centres & offices Owned National Fibre, Subsea World Metro Fibre Backhaul & Cable
Slide 9: Superloop owns & provides high speed network services to businesses & homes
Superloop owns & provides high speed network services to businesses & homes in Asia Pacific Connectivity Broadband Services Australian national network connecting CyberSecurity incl. CyberHound offices, campuses, data centres & homes Superloop WiFi providing Guest WiFi in for Education via owned fib
Slide 10: H1 FY19 Results
H1 FY19 Results Superloop H1 FY19 10 Results & Capital Raise
Slide 11: Sales & Operational Highlights
Sales & Operational Highlights H1 FY2019 Sales highlights Operations highlights ● Sales momentum accelerating with a strong ● Indigo final splice completed December 2018 order book of contracted connectivity services expected to commence billing in 2019 ● International 100G backbone well advanced on
Slide 12: H1 FY19 Revenue of $60.3m & EBITDA of $4.5m
H1 FY19 Revenue of $60.3m & EBITDA of $4.5m H1 FY18(2) H2 FY18(1) (2) Singapore Revenue +$2.1m $m AUD (adjusted) (Underlying excluding H1 FY19 H1 YoY $ H1 YoY % one-off) Hong Kong Revenue +$0.7m Revenue $51.3 $57.7 $60.3 $9.0 +18% COGS $(23.6) $(27.5) $(30.6) $(7.0) +30% AU Connectivity Rev $(0.8)m
Slide 13: Cashflow for H1FY19 & Balance Sheet at 31st Dec 2018
Cashflow for H1FY19 & Balance Sheet at 31st Dec 2018 H1 FY18 H1 FY19 Change ($m) ($m) ($m) ($m) Operating cash flows 6.3 2.0 (4.3) Invested $40m in property, plant Investing cash flows (35.4) (34.3) (1.1) & equipment and intangible Financing cash flows 29.5 25.3 (4.2) assets including $15m for the (
Slide 14: Fibre Connectivity sales accelerating
Fibre Connectivity Sales accelerating, to translate into higher cash receipts and revenue recognition Customer Decision point Cash Receipt from Customer Revenue Recognition End-to-end sales & delivery cycle for Fibre Connectivity Revenue Value of Fibre Connectivity Contract Contracts Signed in Perio
Slide 15: Strong Connectivity Revenue Growth especially in Singapore and Hong Kong
Strong Connectivity Revenue Growth especially in Singapore and Hong Kong +INDIGO Total Connectivity Total Connectivity H1 FY18 H2 FY18 H1 FY19 subsea cable Recurring Connectivity Revenue Recurring Connectivity Gross Margin Recurring Connectivity Revenue $20.1m $21.2m $22.2m to commence Subsea Cable
Slide 16: Superloop WiFi and Home Broadband brands launching 2nd March 2019
Superloop WiFi and Superloop Home Broadband brands launching on 2nd March 2019, integrating acquired brands H2 FY17 H1 FY18 H2 FY18 H1 FY19 Broadband Performance Broadband Revenue $6.8m $9.8m $17.6m $20.3m Total Broadband Revenue Broadband Gross Margin $4.2m $6.8m $10.2m $8.8m Total Broadband Gross
Slide 17: Focusing on Connectivity and Broadband; Services margin decline
Focusing capital and resources on Connectivity and Broadband has seen Services Margin decline by $1.1m yoy Services Performance H2 FY17 H1 FY18 H2 FY18 H1 FY19 More focused product set Services Revenue $19.7m $18.0m $17.5m $14.1m Services Revenue Services Gross Margin $7.9m $7.5m $7.9m $6.4m Service
Slide 18: Investment cycle for subsea & national backbone peaked in H1 FY2019
Investment cycle for subsea & national backbone peaked in H1 FY2019 Over the half, significant capital was invested with INDIGO subsea cable and national ‘RED’ NBN backbone nearing completion & duplication of certain operating expenses. Focus has shifted to leveraging this investment FY 2019 INVESTM
Slide 19: Strategy to meet insatiable demand for secure high-bandwidth internet
Strategy to meet insatiable demand for secure high-bandwidth internet throughout Asia Pacific Superloop H1 FY19 19 Results & Capital Raise
Slide 20: Growth drivers Superloop is leveraging
Growth drivers Superloop is leveraging Demand for bandwidth in Asia Pacific– Increased data consumption, growth of cloud computing, drives demand for Superloop’s connectivity infrastructure Optic fibre infrastructure – 758 km of optic fibre across Australia, Singapore and Hong Kong metro regions as
Slide 21: FY19/FY20 EBITDA guidance
New Revenues from contracts already signed, and identified cost savings, to drive FY19/FY20 EBITDA higher than H1 FY19 FY 2019 Guidance FY 2020 Guidance Statutory EBITDA (under new AASB15 revenue standard) $13-18m Statutory EBITDA (under new AASB15 revenue standard) $26-30m Guidance range is predica
Slide 22: Superloop is well positioned for future value creation
Superloop is well positioned for future value creation Nearing end of major capital investment program Significant new sales opportunity on our owned infrastructure Our on-net footprint in Australia and Asia Pacific is positioned to take advantage of the burgeoning demand for connectivity and broadb
Slide 23: Institutional Placement & Entitlement Offer
Institutional Placement & Entitlement Offer Superloop H1 FY19 23 Results & Capital Raise
Slide 24: Overview of Entitlement & Placement Offer
Overview of Entitlement & Placement Offer Overview of • Fully underwritten placement and 1 for 18 accelerated Offer non-renounceable entitlement offer at $1.25 to raise gross proceeds of approximately $31 million Rationale for ✓ Strengthen balance sheet by reducing net debt the placement ✓ Provide a
Slide 25: Key terms of the Placement & Entitlement Offer
Key terms of the Placement & Entitlement Offer • Fully underwritten Institutional Placement and 1 for 18 accelerated non-renounceable entitlement offer to raise gross proceeds of approximately $31 million (the Offer) Offer size & • Approximately 24.7 million new Superloop ordinary shares to be issue
Slide 26: Key Timetable
Key Timetable Activity Date Trading halt and announcement of 1HFY19 Results and Capital Raise Monday, 25 Feb 2019 Investor briefings Monday, 25 Feb 2019 Monday, 25 Feb 2019 and Tuesday, 26 Feb Placement Bookbuild and Institutional entitlement offer conducted 2019 Announcement of the completion of Pl
Slide 27: Pro-forma Balance Sheet & Use of Funds
Pro-forma Balance Sheet & Use of Funds Pro-forma Balance Sheet 31 Dec 2018 Proceeds of Offer Pro-forma Balance Sheet Source of Funds (after Costs) ($m) ($m) ($m) 31 Dec 2018 ($m) Placement and Entitlement $31m Cash & cash equivalents 8.0 10 18.0 Offer Property, plant & equipment 217.9 217.9 Total So
Slide 28: Key Risk Factors
Key Risk Factors Page 1 of 3 These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to participate
Slide 29: Key Risk Factors
Key Risk Factors Page 2 of 3 These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to participate
Slide 30: Key Risk Factors
Key Risk Factors Page 3 of 3 These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to participate
Slide 31: Appendix
Appendix Glossary Foreign Selling Restrictions Superloop H1 FY19 31 Results & Capital Raise
Slide 32: Appendix 1: Definitions
Appendix 1: Definitions IRU: Indefeasible Right of Use: is a permanent contractual agreement, that cannot be undone, between the owners of a communications system and a customer of that system. The word "indefeasible" means "not capable of being annulled, or voided, or undone." The customer purchase
Slide 33: Appendix 2: Foreign Selling Restrictions
Appendix 2: Foreign Selling Restrictions Foreign selling restrictions - investor presentation Page 1 of 3 Superloop Limited This document does not constitute an offer of new ordinary shares in Superloop Limited (New Shares) in any jurisdiction in which it would be unlawful. In particular, this docum
Slide 34: Appendix 2: Foreign Selling Restrictions
Appendix 2: Foreign Selling Restrictions Foreign selling restrictions - investor presentation Page 2 of 3 Hong Kong WARNING This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has
Slide 35: Appendix 2: Foreign Selling Restrictions
Appendix 2: Foreign Selling Restrictions Foreign selling restrictions - investor presentation Page 3 of 3 Malaysia This document may not be distributed or made available in Malaysia. No approval from, or recognition by, the Securities Commission of Malaysia has or will be obtained in relation to any