Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — Macquarie Telecom Group — Investor Presentation (March 2017)
26 slides from Macquarie Technology's investor presentation, Mar 16, 2017
Slide 1: Investor Presentation
For personal use only Investor Presentation. March 2017
Slide 2: Key Business Highlights
22 Key Business Highlights. For personal use only ● EBITDA CAGR of 19.4% over the last 3 years ● High cashflow conversion and zero debt ● A differentiated market offering across hybrid IT and telecom ● A high quality, diverse, corporate customer base with multi-year contracts ● Primary focus on cust
Slide 3: Business Summary
3 Business Summary. For personal use only Business Areas Percentage of 50% 33% 50% 67% Revenue & EBITDA in H1 FY17 For business, we are the full service provider For business customers we are the specialists We are the Australian specialists in cyber of data, voice, mobile & colocation in hybrid IT.
Slide 4: High Quality & Diverse Corporate & Government Customers
4 High Quality & Diverse Corporate & Government Customers. • Top 20 customers account for c. 20% of revenue in CY 2016 For personal use only • Federal Government accounts for a quarter of these customers • Most contracts are signed for 2 or 3 year terms • Cross-selling of services increasing between
Slide 5: A Differentiated Offering
For personal use only A Differentiated Offering. Macquarie Telecom Group | Investor Presentation
Slide 6: Customer focus… is delivering improved performance
6 Customer focus… is delivering improved performance. For personal use only • Our continued focus on providing a great customer experience is core to our service NPS Q2FY17i offering & differentiation Larger Smaller National Telco Range Telco Range Leaders (+45) • Macquarie’s net promoter score (NPS
Slide 7: Market for Macquarie Cloud Services & Government
7 Market for Macquarie Cloud Services & Government. For personal use only The market is moving to cloud both at the infrastructure as a service level where we operate and at a software as a service level. Macquarie competes at an infrastructure level and our customers are the software as a service c
Slide 8: Macquarie Cloud Services Differentiation
8 Macquarie Cloud Services Differentiation. For personal use only Gartner estimate 58% of companies pursue a hybrid IT strategy One stop shop The breadth of our product range sets us apart from our competitors: colocation, dedicated servers and private cloud for hybrid IT Macquarie offers a un
Slide 9: Macquarie's Cloud Service Hybrid IT vs Public Cloud
9 Macquarie’s Cloud Service Hybrid IT vs Public Cloud. For personal use only Macquarie Telecom Group | Investor Presentation
Slide 10: Macquarie Government Differentiation
10 Macquarie Government Differentiation. One stop shop For personal use only for hybrid IT This means we can offer a unique level of accountability for the entire customer experience journey from commercials to solution service delivery, to integration & then support & billing tailored for The b
Slide 11: Macquarie Government's Offering: Cloud & Cyber Security focus
11 Macquarie Government’s Offering Cloud & Cyber Security focus. For personal use only Cyber Security Secure Cloud Network Macquarie Telecom Group | Investor Presentation
Slide 12: Macquarie's Telecom Differentiation: Mid market competitive landscape
12 Macquarie’s Telecom Differentiation Mid market competitive landscape. For personal use only ● The Company’s differentiation in the corporate market is reinforced by its outstanding customer service experience & competitive pricing ● Macquarie Telecom’s focus on NPS customer service experience has
Slide 13: Quality Infrastructure
For personal use only Quality Infrastructure. Macquarie Telecom Group
Slide 14: Data Centre Portfolio
14 Data Centre Portfolio. For personal use only Intellicentre 1 Intellicentre 2 Intellicentre 4 Sydney Macquarie Park Bunker, Canberra ● Geographically located with interconnections to reduce redundancy and ensure failover of critical workloads ● Carrier neutral ● Data Centre capacity sold by all 3
Slide 15: Intellicentre Sales success
15 Intellicentre 2 Sales success. For personal use only ● Continued strong colocation sales momentum ● 2.5MW sale in May 2016 – first revenue commences in March 2017 ● Large hosting sales totaling 0.5MW have been made in H1 FY17: – co-location deal with Accenture Australia – co-location/infrastructu
Slide 16: Utilisation
16 Utilisation. For personal use only ● Our flagship Intellicentre 2 data centre has achieved strong utilisation Mechanical Electrical Plant Data Hall 3 is presold with the first stage completed & billing Data Hall 4 will from March 2017 be completed in September 2017 Stage 2 will involve additional
Slide 17: Financials
For personal use only Financials. Macquarie Telecom Group | Investor Presentation
Slide 18: Group Financial Performance
18 Group Financial Performance. For personal use only • Over the last 3 years: − revenue CAGR of 3.9% − EBITDA CAGR of 19.4% − EBITDA margin improved from 12.6% to 17.8% • Reflects strategic shift in 1H 2015 & the change in revenue mix to high margin hosting business • Profitable growth is expected
Slide 19: Group NPAT Performance & Fully Franked Dividends
19 Group NPAT Performance & Fully Franked Dividends. For personal use only As our new strategy began to deliver from 2HFY15, fully franked dividends of $0.25 per share in each half. Macquarie Telecom Group | Investor Presentation
Slide 20: Financial Performance – Hosting
20 Financial Performance – Hosting For personal use only • Over the last 3 years − revenue CAGR of 9.0% − EBITDA CAGR of 41.1% − EBITDA margin improved to 25.7% • Highly leveraged business with improving margins as infrastructure utilisation increases • Profitable growth is expected to continue in F
Slide 21: Financial Performance - Telecom
21 Financial Performance - Telecom For personal use only Telecom Revenue ($m) Telecom EBITDA ($m) 71.2 9.3 9.0 9.3 8.8 70.0 8.1 68.9 68.9 7.7 68.2 67.0 2H14 1H15 2H15 1H16 2H16 1H17 2H14 1H15 2H15 1H16 2H16 1H17 • Over the last 3 years: − revenue CAGR of 1.3% − EBITDA CAGR of 5.7% • Reflects growth
Slide 22: Growth Capex. Business as Usual (BAU) Capex
22 Growth Capex. Business as Usual (BAU) Capex. For personal use only ● Growth Capex is for the building of new data centre capacity, increased power supply, ● Business as Usual (BAU) Capex is all other new technology creation & transformational capex. investment. ● In recent years, around half of B
Slide 23: Financial Results
23 Financial Results. $m 1H16 2H16 1H17 1H17 v 1H16 % change For personal use only Service Revenue Telecom 70.0 68.9 71.2 1.2 2% Hosting 32.5 35.9 37.8 5.3 16% Inter-segment (2.4) (2.3) (2.2) 0.2 Total Service Revenue 100.1 102.5 106.8 6.7 7% EBITDA Telecom 9.3 9.0 9.3 - - Hosting 6.3 7.7 9.7 3.4 54
Slide 24: Balance Sheet & Cash Flows
24 $m FY16 1H17 24 Balance Sheet & Cash and cash equivalent s 36.5 24.7 Cash Flows. Ot her current asset s 19.8 21.3 For personal use only Ot her non-current asset s 63.5 76.0 ● Cash of $24.7m & no debt. Total Assets 119.8 122.0 ● Business as usual capex increased to $12.5m Credit ors 27.1 26.1 from
Slide 25: Outlook
25 25 Outlook For personal use only ● Underpinned by strong sales growth, full year FY17 $m FY17 ($m) EBITDA is expected to be approximately $37 to $39 million. EBITDA 37 - 39 ● We are confident that Hosting revenue will continue to grow in 2H FY17 however profitability Business as usual capex 21 -
Slide 26: Disclaimer
Disclaimer. For personal use only No express or implied warranty is given as to the accuracy or completeness of the information in this document or any corresponding presentation. This document may contain forward looking statements that, while used in good faith, reflect Macquarie Telecom Group Lim
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