Aussie Broadband Ltd. · ASX:ABB
Aussie Broadband — H1 FY2023 Earnings Presentation
31 slides from Aussie Broadband's earnings presentation, Feb 27, 2023
Slide 1: 1H FY23 Results presentation
1H FY23 Results presentation 27 February 2023
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation is for information purposes only and it is not financial product or Investors should also be aware that certain financial data included in this presentation investment advice. The presentation is not intended to be comprehensive or provide all includ
Slide 3: Delivering on our Aussie 2.0 strategy
Delivering on our Aussie 2.0 strategy
Slide 4: Aussie 2023 – our game
Aussie 2023 – our game Building the base for our 2025 ambition to be Australia’s 4th largest provider of communications and technology services Leverage our One of Australia’s largest Modern, highly scalable systems Innovative, high-quality products technology infrastructure operators across enablin
Slide 5: Our business model
Our business model Residential Business Enterprise & Government Wholesale Continuing to show Australians what a Making getting connected and Providing a genuine, full-service Leveraging our infrastructure and good telco looks like staying connected as easy at work as alternative to the big 4 experti
Slide 6: Continuing to scale our business
Continuing to scale our business Led by a strategy to extend our product offering and diversify earnings Create scale through the delivery of high-quality network 1 and communications services and exceptional customer experience Leverage our strategic acquisition of Over the Wire to grow 2 greater m
Slide 7: Financial and operational highlights
Financial and operational highlights
Slide 8: 1H FY23 financial highlights
1H FY23 financial highlights Growth across all key financial metrics i $379.0m $41.1m 34.9% $30.8m Revenue EBITDA Gross Margin Op Cash Flow Up 27% Up 86% Up 2.5ppt Up 35% pcp pcp pcp pcp 1. Prior comparable period (pcp) calculated based on aggregated ABB and OTW 1H FY22 results 2. Operating cash flo
Slide 9: 1H FY23 operational highlights
1H FY23 operational highlights Delivering across all key operational metrics Broadband nbn® Market OTW Integration One team Connections Share $6m annualised operating 635.2k 7.01% synergies model Up 27% Up 1.4 ppt Up $0.8m on > 1,100 pcp pcp 1Q FY23 team members 1. Prior comparable period (pcp) calc
Slide 10: Strong performance across our key segments
Strong performance across our 4 key segments A shift in earnings from primarily residential NBN to other segments 1H FY23 revenue 1H FY23 gross profit and margin by segment as % of revenue by segment Positive mix shift towards higher margin segments $18.0 $49.4 37% GM Proactively managing $36.6 $19.
Slide 11: Key 1H FY23 revenue drivers
Key 1H FY23 revenue drivers Growth across all key metrics 1H FY23 revenue bridge 400 30.8 379.0 350 49.6 300 69.3 298.6 250 27% growth in top line revenue $ in millions 229.3 200 150 100 50 0 1H FY22 1H FY22 Pro-forma Residential E&G, Business 1H FY23 ABB OTW 1H FY22 Revenue & Wholesale Consolidated
Slide 12: Key 1H FY23 EBITDA drivers
Key 1H FY23 EBITDA drivers EBITDA growth underpinned by scale and shift in mix 1H FY23 EBITDA bridge 50 45 2.2 (3.1) 40 10.3 41.1 35 30 9.1 86% growth $ in millions in EBITDA 25 20 13.0 22.1 15 10 9.1 5 0 1H FY22 1H FY22 Pro-forma Network Growth Synergy Marketing / Wage 1H FY23 Consol ABB OTW 1H FY2
Slide 13: Capex
Capex Investing for growth Summary Capex ($m) 1H FY23 60 1H FY23 capex profile Recurring (Network & Software) 5.4 FY22 spend dominated Fibre backbone 8.3 50 2.3 by fibre backbone with 1.3 Indicative Growth 17.5 FY23 focused on growth 9.2 2H FY23 Total 31.2 40 $23.8m Indicative 2H FY23 23.8 Fibre bui
Slide 14: Cashflow
Cashflow Strong operating cash generation 1H FY22) 1H FY23) Operating cashflows at $30.8m remains $m) $m) strong Cash flows from operating activities 22.8) 30.8) Net interest (0.7) (3.6) Investing activities Income taxes paid (1.4) (1.4) largely reflect Net cash from operating activities 19.2) 25.8)
Slide 15: Segment performance
Segment performance h Aussie = Broadband
Slide 16: Residential: No. of Connections
Residential Connection numbers continue to grow despite slowing new nbn connection market Summary 1H FY22 1H FY23 Change Residential broadband connections performance ($m) Revenue 193.4 243.0 26% 500,000 Net additions growth continues to outpace COGS (144.9) (171.0) 18% 30,077 nbn market trends Gros
Slide 17: Business: No. of Connections
Business Connection growth continues and now includes expanded product offering Summary 1H FY22 1H FY23 Change Business broadband connections performance ($m) Revenue 46.8 50.0 7% 50,000 Connections of 9.1k, up 24% from COGS (23.7) (27.0) 14% 4,161 1H FY22 45,000 Gross margin 23.1 23.0 (1%) Gross ma
Slide 18: Enterprise and government
Enterprise and government High margin, value add segment with longer term contracts Summary 1H FY22 1H FY23 Change performance ($m) E&G revenue Recurring 30.0 31.5 5% E&G revenue mix weighted towards Non-recurring 6.7 5.0 (25%) Voice 15.5% value-add services Total revenue 36.7 36.6 0% COGS (18.8) (1
Slide 19: Wholesale: No. of Connections
Wholesale Partner broadband connection growth through focus on new connections and churn Wholesale broadband connections Summary 1H FY22 1H FY23 Change performance ($m) 100,000 Revenue 21.6 49.4 129% Three core products: 90,000 broadband, voice and COGS (13.0) (31.4) 141% white label Gross margin 8.
Slide 20: Aussie Fibre
Aussie Fibre Connected buildings has accelerated in 1H FY23 Connected Buildings being Buildings buildings provisioned available for 288 73 connection 1,400+ 100% of core Up 320% pcp network completed 1. Connected buildings includes 172 commercial buildings, 86 nbn POIs and 30 data centres 20
Slide 21: Over the Wire integration
Over the Wire integration Integration synergies delivered amount to $6m annualised Summary 1H FY23 Full year FY23 performance ($m) estimate FY23 synergy estimate of $5.3m Gross synergy $2.2m $5.3m FY25 synergy guidance $8.0 - $12.0m Divestment of two non-core businesses generating $6.5m gross procee
Slide 22: FY23 closing summary
FY23 closing summary h Aussie = Broadband
Slide 23: Closing summary
Closing summary Strong financial performance in 1H FY23 - growth across all key metrics Over the Wire acquisition embedded - synergies realisation of $2.2 million in 1H FY23, with full year FY23 estimate of $5.3 million and on track to achieve $8-12 million p.a. by FY25 Investment for future growth
Slide 24: Appendices
Appendices h Aussie = Broadband
Slide 25: Broadband connections by segment
Broadband connections by segment Connections revised to be aligned with business model Revised segment broadband connections Prior disclosed segment connections 1H FY22 2H FY22 1H FY23 1H FY22 2H FY22 Residential2 421,909 464,909 494,986 Residential 422,034 464,979 Proactively managing Business3 38,
Slide 26: Metrics - mobile, voice and fetch
Metrics - mobile, voice and fetch Mobile services Voice services 55,000 100,000 50,951 97,905 50,000 98,000 96,000 94,451 45,000 40,282 94,000 Mobile net additions 40,000 35,242 92,000 have almost doubled 35,000 90,000 since 2H FY22 88,193 30,000 88,000 25,000 86,000 20,000 84,000 Voice services tot
Slide 27: Profit & loss
Profit & loss Summary profit and loss 1H FY22) 1H FY23) $m) $m) Revenue 298.6) 379.0) Network & hardware expenses (202.0) (246.8) Net profit Gross margin 96.6) 132.2) growth to $8.6m Gross margin % 32.3%) 34.9%) Employee expenses (47.4) (60.2) Low level of business Marketing expenses (16.4) (15.8) a
Slide 28: 1H FY23 – profit and loss by segment
1H FY23 – profit and loss by segment Segment Reconciliation Residential) Business) E&G) Wholesale) Total) $m) $m) $m) $m) $m) Revenue 243.0) 50.0) 36.6) 49.4) 379.0) Network and hardware expenses (171.0) (27.0) (17.4) (31.4) (246.8) Margin 72.0) 23.0) 19.2) 18.0) 132.2) Margin % 30%) 46%) 52%) 37%)
Slide 29: Balance sheet
Balance sheet Summary balance sheet Jun-22 Dec-22 $m $m Cash and cash equivalents 47.7 33.7 Pro-forma banking Trade and other receivables 37.2 43.1 covenant leverage Plant and equipment 64.1 83.0 ratio <2.0 times Right-of-use assets 44.3 41.4 Intangibles 416.4 411.8 Net assets of Other assets 18.8 2
Slide 30: Definitions
Definitions Residential segment Wholesale segment E&G broadband connections Typically residential or home business A range of building block products including nbn, Includes nbn TC4, TC2 & TC1, Opticomm/Uniti, customers who require broadband, Aussie Fibre and NetSIP Voice that allow other nbn Enterp
Slide 31: Thank you
Thank you Aussie Broadband Limited Authorised for release by the Aussie Broadband Board Investors contact: Ronn Bechler - 0400 009 774 investors@team.aussiebroadband.com.au