Nextdc Limited · ASX:NXT

Nextdc — H1 2023 Earnings Presentation

49 slides from Nextdc's earnings presentation, Feb 28, 2023

Slide 2: Agenda
AGENDA 1H23 RESULTS 1H23 HIGHLIGHTS 1H23 FINANCIAL RESULTS 1H23 BUSINESS PERFORMANCE 1H23 ESG & WHS HIGHLIGHTS FY23 GUIDANCE APPENDICES NEXTDC © Copyright 2023 2022 | 1H23 Results Presentation 2
Slide 4: 1H23 Highlights
1H23 HIGHLIGHTS DATA CENTRE UNDERLYING CONTRACTED INTER- SERVICES REVENUE EBITDA1 UTILISATION CONNECTIONS2 A$159.7m A$97.5m 84.2MW 17,301 10% 15% 4% 9% Note: All percentage increases are expressed relative to the 1H22 results: 1. Refer page 43 for reconciliation to underlying EBITDA 2. Comprises bot
Slide 5: 1H23 Highlights
1H23 HIGHLIGHTS ▪ Data centre services revenue increased A$15.2m (10%) to A$159.7m ▪ Contracted utilisation increased 3.2MW 1 (4%) to 84.2MW SOLID REVENUE GROWTH ▪ Interconnections2 increased 1,422 (9%) to 17,301, representing 7.9% of recurring revenue 3 ▪ Underlying EBITDA4 increased A$12.5m (15%)
Slide 7: 1H23 Profit and Loss Summary
1H23 PROFIT AND LOSS SUMMARY 1H23 1H22 Change Data centre services Underlying Note (A$m) (A$m) (A$m) (%) Data centre services revenue 159.7 144.5 15.2 10.5% REVENUE EBITDA1 Direct costs (power and consumables) 21.3 22.7 (1.4) (6.1)% 10% 15% Facility costs (property costs, 16.1 13.3 2.7 20.6% ▪ Ene
Slide 8: Strong Revenue and EBITDA Growth
STRONG REVENUE AND EBITDA GROWTH Data centre services revenue Underlying EBITDA1 Project revenue Underlying EBITDA Recurring revenue A$97.5m A$85.0m A$84.0m A$159.7m A$144.5m A$146.5m A$68.8m A$65.7m A$121.6m A$124.4m A$105.4m A$53.7m A$95.4m A$50.9m A$85.6m A$42.9m 2H19 1H20 2H20 1H21 2H21 1H22 2H2
Slide 9: Revenue Per Unit Metrics
REVENUE PER UNIT METRICS Annualised revenue per square metre1,2 (A$) Annualised revenue per MW 1,3 (A$m) 11,041 4.56 10,765 10,669 10,816 10,772 10,595 4.43 4.38 10,484 4.31 9,973 4.14 4.04 3.94 3.78 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 1. Based on recurrin
Slide 10: Well Capitalised for Growth
WELL CAPITALISED FOR GROWTH 31 Dec 22 30 Jun 22 Cash Flows $199.5m $363.5m Balance sheet summary (A$m) Cash 364 457 Property (land and buildings)1 1,551 1,302 $71.3m Plant and equipment 958 959 $456.6m Other assets 280 259 $363.8m Total assets 3,153 2,977 Borrowings2 1,263 1,059 Other liabilities 19
Slide 12: Strong Growth in Customers and Interconnections
STRONG GROWTH IN CUSTOMERS AND INTERCONNECTIONS Number of customers1 Number of interconnections2 17,301 1,701 16,613 1,613 15,879 1,569 1,507 14,718 1,425 13,911 1,324 13,051 1,225 12,012 1,145 10,972 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 ▪ Strong ongoing gr
Slide 13: Diversified Recurring Revenue Model
DIVERSIFIED RECURRING REVENUE MODEL 4% Customers by industry1,2,3 Utilisation by power density1,3,4 6% Enterprise Government > 6kW 8% Connectivity Financial Services 24% 4kW to 6kW 38% System Integrators Digital Media < 4kW 12% Cloud 55% 14% Cloud, Systems Integrators and Connectivity 22% Customer p
Slide 14: Utilisation
UTILISATION Built capacity1 vs contracted utilisation2 Billing vs contracted utilisation2 ▪ 65% of built capacity was contracted at 31 December 2022 ▪ Contracted utilisation up 3.2MW (4%) to 84.2MW since 1H222 ▪ 15.5MW of new built capacity added in 6 months to 31 December 2022 ▪ Billing utilisation
Slide 15: Facilities Capacity and Contracted Utilisation
FACILITIES CAPACITY AND CONTRACTED UTILISATION 100 Contracted utilisation ▪ NEXTDC’s expansion potential continues to grow with S4, S5 and M4, new regions in Adelaide and Darwin as Build in progress well as future planned Edge locations including PH1 Built capacity ▪ S3 Sydney: Additional 10MW of ca
Slide 17: ESG Highlights
ESG HIGHLIGHTS ▪ Industry leading energy efficiency, portfolio average PUE of 1.38 ▪ Australia’s first NABERS 5-Star data centres for energy efficiency (M1 & S1) ▪ Active management of water usage for industry leading portfolio average 1.61 WUE ▪ 100% Carbon Neutral corporate operations certified by
Slide 18: WHS Highlights
WHS HIGHLIGHTS ▪ ZERO Recordable Lost Time Injuries during 1H23 ▪ Safety First corporate goal of zero injuries in the workplace ▪ Every ‘all company’ meeting starts with a safety focused ‘tool box talk’ ▪ NEXTDC uses Lessons Learnt Program to share all incident and near miss learnings between suppli
Slide 20: FY23 Guidance
FY23 GUIDANCE Data centre services revenue towards the top end of A$340 million to A$355 million (range unchanged) ▪ Continued strong growth in enterprise, network and partner pipeline driving healthy margin ▪ Revenue growth assisted by higher power passthrough revenues in 2H23 and contract protecti
Slide 24: Regional Footprint
REGIONAL FOOTPRINT ully Operational n Planning Development Regional Offices ndigo Cable ocus J AS NEXTDC Backhaul NEXTDC n Planning NEXTDC © Copyright 2023 | 1H23 Results Presentation 24
Slide 25: Digital Infrastructure Platform
DIGITAL INFRASTRUCTURE PLATFORM ONEDC PLATFORM DIGITAL INFRASTRUCTURE SERVICES PLATFORM AXON NETWORK CONNECTIVITY SERVICES CLOUD, CAMPUS, METRO, INTERCAP, SUBSEA MISSION CRITICAL OPERATIONS CENTRES 5G, SATELLITE, MINING, REMOTE OPERATIONS, FINANCIAL SERVICES, SPACE, SECURITY HYPERSCALE MAJOR METRO R
Slide 27: AXON Ecosystem
AXON ECOSYSTEM CARRIERS PUBLIC CLOUD Transforming digitally relies on being supported by an ecosystem CLOUD CENTRE of specialist networks and partners. PRIVATE CONTENT CLOUD Australia’s most dynamic and network dense providers & delivery networks partner marketplace – helping customers embrace an ag
Slide 28: ONEDC Real Time Intelligence
ONEDC REAL TIME ® INTELLIGENCE COLOCATION AT NEXTDC MEANS CONTROL AND TRANSPARENCY. Manage your infrastructure on your terms. We give you the tools to empower real-time decision making. NEXTDC © Copyright 2023 | 1H23 Results Presentation 28
Slide 30: M2 Melbourne
M2 MELBOURNE TECHNICAL SPECIFICATIONS Technical Space 25,000sqm+ Total target IT capacity 100MW Installed capacity 25MW Target PUE 1.101 / 1.282 Design & construction UI Tier IV Design standard UI Tier IV Constructed Facility UI Tier IV Gold for Operational Sustainability Status Operational • M2 Mis
Slide 31: M3 Melbourne
M3 MELBOURNE TECHNICAL SPECIFICATIONS Land area ~100,000sqm Total target IT capacity 150MW Installed capacity 13.5MW Target PUE 1.091 / 1.252 Design & construction UI Tier IV Design standard UI Tier IV Constructed Facility UI Tier IV Gold for Operational Sustainability Status Operational • Planned i
Slide 32: S3 Sydney
S3 SYDNEY TECHNICAL SPECIFICATIONS Technical Space 20,000sqm+ Total IT capacity 80MW Installed capacity 12MW Target PUE 1.151 / 1.292 Design & construction UI Tier IV Design standard UI Tier IV Constructed Facility UI Tier IV Gold for Operational Sustainability Status Operational • Seamless Cross Co
Slide 33: S4 Sydney
S4 SYDNEY TECHNICAL SPECIFICATIONS Land Area ~124,000sqm Proposed IT capacity ~300MW Development FY25+ commencement • S1, S2, S3 and S4 Sydney metropolitan campus will be interconnected via Data Centre Interconnect and AXON • S4 will provide data centre services to Hyperscale Cloud Providers, enterp
Slide 34: D1 Darwin
D1 DARWIN TECHNICAL SPECIFICATIONS Land area ~4,000sqm Target Technical Space ~3,000sqm Total power planned 7MW+ Development 2H23 commencement • First purpose built commercial data centre in the Northern Territory • D1 will provide data centre services to Enterprise, Government, and network carriers
Slide 35: A1 Adelaide
A1 ADELAIDE TECHNICAL SPECIFICATIONS Land area ~1,570sqm Target IT capacity 5MW Development 2H23 commencement • A1 will provide data centre services to Enterprise and Government customers within the Adelaide region • t will also house customers’ mission critical operation centres, business continuit
Slide 36: SC1 Sunshine Coast
SC1 SUNSHINE COAST TECHNICAL SPECIFICATIONS Land Area ~1,200sqm Target IT capacity 1MW+ Built capacity 0.2MW Status Operational • Strategically located in proximity to critical telecommunications infrastructure, SC1 hosts the Sunshine Coast International Broadband Network (‘SC BN’) Cable Landing Sta
Slide 37: PH1 Port Hedland
PH1 PORT HEDLAND TECHNICAL SPECIFICATIONS Technical Space ~727sqm Target IT capacity 1.5MW+ Target Rack Capacity 320 Sustainability Targets Behind the meter power generation Leveraging in-region renewable energy hubs Design & construction Designed to Tier III Standards standard Modular Design & Cons
Slide 39: M4 Melbourne
M4 MELBOURNE TECHNICAL SPECIFICATIONS Land Area ~58,200sqm Technical Space ~26,400sqm Target IT capacity ~80MW 1 Design & construction UI Tier IV Design and Construct standard UI Tier IV Constructed Facility UI Tier IV Gold for Operational Sustainability Project Status Detailed Design & Approvals •
Slide 40: Proximity and Performance M2
PROXIMITY AND Melbourne Airport M2 75 Sharps Road PERFORMANCE Tullamarine VIC 3043 NEXTDC’s metropolitan data centres offer superior network connectivity when it comes to bridging the distance and latency between your primary location M3 and DR site, enabling you to 11km 14km 25 Indwe Street failove
Slide 41: S5 Sydney
S5 SYDNEY TECHNICAL SPECIFICATIONS Land Area ~22,600sqm Technical Space ~16,000sqm Target IT capacity ~60MW+1 Design & construction UI Tier IV Design and Construct standard UI Tier IV Constructed Facility UI Tier IV Gold for Operational Sustainability Status Detailed Design & Approvals • UI Tier Des
Slide 42: Proximity and Performance S4
PROXIMITY AND S1 S2 4 Eden Park Drive 6-8 Giffnock Avenue PERFORMANCE Macquarie Park Macquarie Park NSW 2113 NSW 2113 NEXTDC’s metropolitan data centres offer superior network S3 750m 9.3km connectivity when it comes to bridging the distance and latency 9km between your primary location 44km 2 Broad
Slide 43: Underlying EBITDA Reconciliation
UNDERLYING EBITDA RECONCILIATION 1H23 1H22 (A$m) (A$m) Net profit / (loss) after tax (2.8) 10.3 Add: finance costs 31.3 21.6 Less: interest income (4.5) (0.6) Add: income tax expense 1.8 - Add: depreciation and amortisation 66.0 51.1 EBITDA 91.9 82.4 Add: expensed SaaS costs previously capitalised -
Slide 45: Case Study: M1 Melbourne
CASE STUDY: M1 MELBOURNE Facility EBITDA1 (A$m) 30 Billing utilisation 100% Highlights Facility EBITDA 25 80% ▪ NEXTDC’s second facility, commenced operations in September 2012 20 60% ▪ Break-even reached after 11 months of operation 15 40% 10 5 20% 0 0% ($’000s) Period ended 1H14 2H14 1H15 2H15 1H1
Slide 46: Case Study: S1 Sydney
CASE STUDY: S1 SYDNEY Facility EBITDA1 (A$m) Billing utilisation 100% Highlights 25 Facility EBITDA 80% ▪ NEXTDC’s fourth facility commenced operations in 20 September 2013 60% ▪ Break-even reached after 7 months of operation 15 40% 10 5 20% 0 0% ($’000s) Period ended 1H14 2H14 1H15 2H15 1H16 2H16 1
Slide 47: Important Disclaimer
IMPORTANT DISCLAIMER DISCLAIMER This presentation has been prepared by NEXTDC Limited (ACN 143 582 521) (‘NEXTDC’) and makes statements about it as well as its subsidiaries (together the ‘NEXTDC roup’). To the maximum extent permitted by law, no member of NEXTDC Group, or any of its officers, employ
Slide 48: NEXTDC Investor Relations
NEXTDC INVESTOR RELATIONS investorrelations@nextdc.com 13 63 98 linkedin.com/company/nextdc twitter.com/nextdc facebook.com/datacentres youtube.com/user/nextdatacentre www.nextdc.com/blog NEXTDC © Copyright 2022 2023 | FY22 1H23 Results Presentation 48
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NEXTDC — H1 2023 Earnings Presentation on 6ix

Nextdc — H1 2023 Earnings Presentation

Slide 1: FY23 Half-Year Results

Slide 2: Agenda

Slide 3: 1H23 Highlights

Slide 4: 1H23 Highlights

Slide 5: 1H23 Highlights

Slide 6: 1H23 Financial Results

Slide 7: 1H23 Profit and Loss Summary

Slide 8: Strong Revenue and EBITDA Growth

Slide 9: Revenue Per Unit Metrics

Slide 10: Well Capitalised for Growth

Slide 11: 1H23 Business Performance

Slide 12: Strong Growth in Customers and Interconnections

Slide 13: Diversified Recurring Revenue Model

Slide 14: Utilisation

Slide 15: Facilities Capacity and Contracted Utilisation

Slide 16: 1H23 ESG & WHS Highlights

Slide 17: ESG Highlights

Slide 18: WHS Highlights

Slide 19: FY23 Guidance

Slide 20: FY23 Guidance

Slide 21: Q&A

Slide 22: Appendices

Slide 23: Business Strategy

Slide 24: Regional Footprint

Slide 25: Digital Infrastructure Platform

Slide 26: Mission Critical Operations

Slide 27: AXON Ecosystem

Slide 28: ONEDC Real Time Intelligence

Slide 29: Development Projects

Slide 30: M2 Melbourne

Slide 31: M3 Melbourne

Slide 32: S3 Sydney

Slide 33: S4 Sydney

Slide 34: D1 Darwin

Slide 35: A1 Adelaide

Slide 36: SC1 Sunshine Coast

Slide 37: PH1 Port Hedland

Slide 38: New Site Acquisitions

Slide 39: M4 Melbourne

Slide 40: Proximity and Performance M2

Slide 41: S5 Sydney

Slide 42: Proximity and Performance S4

Slide 43: Underlying EBITDA Reconciliation

Slide 44: Case Studies

Slide 45: Case Study: M1 Melbourne

Slide 46: Case Study: S1 Sydney

Slide 47: Important Disclaimer

Slide 48: NEXTDC Investor Relations

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