Swoop Holdings Limited · ASX:SWP
Swoop — Investor Presentation (October 2021)
33 slides from Swoop's investor presentation, Oct 14, 2021
Slide 1: Operational Update & Capital Raising
Operational Update & Capital Raising Investor Presentation 14 October 2021 STRICTLY PRIVATE AND CONFIDENTIAL 1
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This presentation is issued on a confidential basis by Swoop Holdings Limited ACN 009 256 535 (Swoop or the Company) for information purposes only. It risks, significant uncertainties, assumptions, contingencies, and other factors, many of which are outside the control
Slide 3: Introduction
Introduction 3
Slide 4: Swoop is a national provider of fixed wireless internet services for wholesale and retail
Swoop is a national provider of fixed wireless internet services for wholesale and retail residential customers Key operating metrics as at 30 September 20211 454 ~157 33,202 No. of fixed wireless Staff across Services in masts/towers Australia operation 3,078 4,307 25,817 Wholesale services Busines
Slide 5: National network of masts and towers
National network of masts and towers Masts/towers coloured in orange (SA) and blue (VIC) represent network infrastructure acquired via Beam and Speedweb. National network of 454 masts and towers (excluding recently announced Countrytell) 5
Slide 6: FY21 Highlights
FY21 Highlights 6
Slide 7: FY21 highlights
FY21 highlights 27th May successfully listed on ASX via reverse takeover with accounting FY211 Pro Forma treatment as Swoop acquired Stemify & Node1 from 20th May Revenue2 Raised $20m by public offer of shares in conjunction with listing for +104% yoy organic and acquisition growth Strong Balance Sh
Slide 8: FY21 SIO growth
FY21 SIO growth 24% yoy growth in SIOs from FY20 to FY21 Residential SIOs 23,611 Strong organic growth into FY22 from new regions 27% 18,601 Strong momentum with June record residential sales month FY20 FY21 Services In Operation Revenue Mix Business 4,027 30,723 Wholesale 17% Residential 24% 48% 42
Slide 9: FY21 infrastructure expansion
FY21 infrastructure expansion Increased the coverage and number of towers organically and by acquisition in FY21 Significant increase in On-Net services driving improved margins One of Australia's largest fixed wireless networks FY20 On-Net SIOs FY21 On-Net SIOs Towers 390 51% yoy Growth 259 Off-Net
Slide 10: Acquisitions
Acquisitions 10
Slide 11: Acquisition strategy
Acquisition strategy Expanding our capabilities to create an Australia-wide full service telco including fixed wireless, fibre, voice and reseller Geography Product Infrastructure Customer Focused on Expanding our products Expand our infrastructure Acquiring customers in infrastructure with compleme
Slide 12: Acquisition as a pathway to rapid expansion
Acquisition as a pathway to rapid expansion Provide rapid access to existing SIOs without incurring up front customer acquisition and connection costs Acquiring at attractive private company multiples Immediate access to turnkey infrastructure in regions that are on our expansion road map Vendors ar
Slide 13: Acquisitions to date and planned
Acquisitions to date and planned Name Product Geography Segment Infrastructure Purchase Price FY21 EBITDA Completed Speedweb Fixed Wireless (FW) Regional VIC Residential 51 Towers $1.75m $0.5m1 Beam FW Regional SA Residential/SME 65 Towers $6.7m $1.6m1 Community FW Perth Residential 14 Towers $0.3m
Slide 14: Acquisition as pathway to rapid expansion
Acquisition as pathway to rapid expansion $2.25m Higher revenue remaining and cost $8.75m cost efficiencies $2.1m Total acquisition 5,400 Network EBITDA3 consideration1 infrastructure On-Net SIOs2 $6.5m ~$417 Equivalent infrastructure cost Cost to acquire and connect each SIO (replacement cost/tower
Slide 15: Acquisition highlight - Countrytell
Acquisition highlight - Countrytell Countrytell is a Regional Wireless ISP (WISP) operating in the markets of the Hunter Valley, the Snowy Mountains, Albury, and Expected to complete the Mid North Coast 31 October 2021 Strong, highly experienced team Purchase price of $4.2m (net Quality infrastructu
Slide 16: Experienced M&A Team – Done it before
Experienced M&A Team – Done it before James Spenceley Anthony (Tony) Grist Matthew Hollis Alex West John Phillips Non-Executive Chairman Non-Executive Deputy Chairman Executive Director Group Chief Executive Officer Chief Financial Officer Previously founder & CEO of Vocus Previously co-founder and
Slide 17: FY22 Summary
FY22 Summary 17
Slide 18: Four pillars of growth
Four pillars of growth Fixed Wireless Business Residential Wholesale (Infrastructure) Leverage & Expand Resell NBN Enterprise & Retail NBN Internet Infrastructure Assets & Existing Infrastructure Value add products Products NBN resale Assets Regional & National Coverage National Coverage Regional &
Slide 19: Q1 FY22 SIO growth
Q1 FY22 SIO growth Residential SIOs Annualised organic Q1 FY22 growth ~10%; ~32% including acquisitions 25,979 (excludes Countrytell) 162 10% Countrytell Strong organic increase in business and residential SIO’s consistent 23,611 with growth strategy Services in Operation End Q4 FY21 End Q4 FY22 34,
Slide 20: Q1 FY22 infrastructure expansion
Q1 FY22 infrastructure expansion Significant margin increase for on net services vs off net services Organic increase in towers reflects regional roll out in Victoria Towers 487 33 Countrytell 25% FY20 On-Net SIOs End Q4 FY21 On-Net SIOs End Q1 FY22 On-Net SIOs 390 Off-Net 51% Off-Net On-Net Off-Net
Slide 21: FY22 Summary
FY22 Summary Organic revenue Acquire complementary Expand infrastructure in growth in FY22 businesses across our key 4 regional areas with low growth areas speed alternatives Invest in our people and Scale & Acquisition Synergies Build the next large scale systems to improve services beginning in FY
Slide 22: FY22 Revenue and Underlying EBITDA Guidance
FY22 Revenue and Underlying EBITDA Guidance Revenue Guidance Underlying EBITDA Guidance >39% $43.0m-$45.0m $10.5m-$11.0m yoy Growth >114% $30.9m yoy Growth $4.9m $15.2m $1.8m FY20 (PFA) FY21 (PFA) FY22 (F) FY20 (PFA) FY21 (PFA) FY22 (F) FY22 Guidance confirmed (pre Countrytell acquisition): Revenue
Slide 23: Offer details
Offer details 23
Slide 24: Key offer information
Key offer information • ~A$41.0 million fully underwritten institutional placement (“Placement”) • ~22.2 million new ordinary shares to be issued, representing 12.9% of Swoop’s existing ordinary shares on issue (“Placement Shares”) • Placement Shares will rank equally with existing Swoop ordinary sh
Slide 25: Indicative timetable
Indicative timetable Trading halt Thursday, 14 October 2021 Placement bookbuild Thursday, 14 October 2021 – Friday, 15 October 2021 Record date for SPP 7:00pm (AEDT) Wednesday, 13 October 2021 Announcement of the Placement Thursday, 14 October 2021 Trading halt lifted Monday, 18 October 2021 SPP off
Slide 26: Financials
Financials 26
Slide 27: Pro Forma Financial Position – June 2021
Pro Forma Financial Position – 30 June 2021 Swoop Group Effects of Offer Acquisitions Speedweb Countrytell Pro Forma Group • The facing table shows the pro forma consolidated preliminary statement of financial position as Notes: *1 *2 *3 *4 *5 at 30 June 2021 reflecting: Cash and cash equivalents 17
Slide 28: Key risks
Key risks 28
Slide 29: Key risks
Key risks These risks are in addition to the risks set out in the Swoop Holdings Ltd prospectus issued in April 2021 in connection with its listing in May 2021. Growth risks The Group is exposed to risks associated with pursuing growth through the continued rollout of its fixed wireless network, the
Slide 30: Appendix
Appendix 30
Slide 31: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares of the Company (New Shares) in any jurisdiction in which it would and Futures Act, Chapter 289 of Singapore (the "SFA"), or as otherwise pursuant to, and in accordance with the conditions of any other
Slide 32: Underwriting Agreement – Summary of key terms
Underwriting Agreement – Summary of key terms The Company has entered into an underwriting agreement (Underwriting Agreement) with Morgans Corporate Limited (Lead Manager, Underwriter) who with a criminal offence; or has agreed to manage and underwrite the Placement. • any of James Spenceley, Matthe
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