Netlink Nbn Trust · SGX:CJLU

Netlink Nbn Trust — Investor Presentation (November 2019)

18 slides from Netlink Nbn Trust's investor presentation, November 2019

  1. Slide 1: Investor Presentation November 2019

    Investor Presentation November 2019 1

  2. Slide 2: Disclaimer

    Disclaimer This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in NetLink NBN Trust (the “Trust” and the units in the Trust, the “Units”

  3. Slide 3: Financial snapshot

    Financial snapshot1 Revenue Cash Balance Market Cap3 S$186m S$142m S$3,468m ▲ 5.3%2 EBITDA Gross Debt Enterprise Value3 S$135m S$636m S$3,962m ▲ 10.6%2 Profit After Tax S$44m 1 H1 FY20 2 Variance versus H1 FY19 ▲ 17.0%2 3 Based on the unit price of S$0.89 at 30 Sep 2019 3

  4. Slide 4: Fibre is 'future proof'

    Fibre is ‘future proof’ Fibre is the About 9 out Fibre Fibre supports Fibre medium of of 10 homes broadband wireless access capacity is choice for in Singapore prices are solution such scalable and delivering has a fibre lower in as WiFi can support broadband termination Singapore hotspots and futur

  5. Slide 5: Our network

    Our network 1,410,627 46,742 1,569 End-Users Connections End-Users 5

  6. Slide 6: A resilient business model

    A resilient business model RAB Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of H1 FY20 61.2%

  7. Slide 7: Fibre connections: residential, non-residential, NBAP and segment

    Fibre connections Non-Building Address Points Residential Non-Residential And Segment connections1 ’000 ’000 1,500 50 2,000 46.5 46.7 NBAP Connections 46.2 43.9 Segment connections 1,411 1,800 1,400 1,383 1,587 1,569 40 1,600 1,328 1,505 1,300 1,400 1,192 30 1,200 1,200 1,000 IPO Projection IPO Proj

  8. Slide 8: Q2 FY20 Profit & loss statement

    Q2 FY20 Profit & loss statement S$’000 Q2 FY20 Q2 FY19 Variance (%) Revenue grew by 3.8% mainly due to higher residential connections Revenue 94,072 90,594 3.8 and installation-related revenue, partially offset by lower ducts and manholes EBITDA 68,660 61,239 12.1 service and diversion revenue. EBIT

  9. Slide 9: H1 FY20 Profit & loss statement

    H1 FY20 Profit & loss statement Revenue for H1 FY20 S$’000 H1 FY20 H1 FY19 Variance (%) grew by 5.3% mainly due to higher residential connections and Revenue 186,113 176,706 5.3 installation-related revenue, partially offset by lower ducts and EBITDA 135,186 122,231 10.6 manholes service and diversi

  10. Slide 10: Robust balance sheet

    Robust balance sheet1 S$142m S$636m S$2,975m Cash Balance Gross Debt Net Assets 2.4x 13.6x 76.3 cents Gross Debt/ EBITDA Interest Net Assets per Unit EBITDA2 Cover2 • Interest rate exposure fully hedged • Stable capital structure with debt headroom to fund future capex 1 As at 30 Sep 2019 2 Ratios c

  11. Slide 11: Attractive distribution yield with low risk

    Attractive distribution yield with low risk (1) 6 5.7 5 4.2 Distribution Yield (%) 4.0 4 3 2 1.8 1 0.6 0 NBN Yield 10-YR Singapore Govt Bank 12-month Fixed STI Yield FTSE ST REIT Yield Bond Deposit Rate Source: Bloomberg as at 30 Sep 2019 • A distribution of 2.52 Singapore cents per Unit was declare

  12. Slide 12: Our focus for FY20

    Our focus for FY20 Residential Non-Residential NBAP & Segment  Migration of cable  Partnership with  Denser network – adding end-users to fibre Requesting Licensees capacity, flexibility and  Residential homes  Serving Enterprises and resilience not on fibre Government Agencies  New product of

  13. Slide 13: Well-positioned to deliver long-term value and growth

    Well-positioned to deliver long-term value and growth Resilient Critical Sole nationwide business model infrastructure provider of with transparent, enabling residential fibre predictable and Singapore’s Next network in regulated Gen NBN Singapore revenue stream Well-positioned to Well-positioned to

  14. Slide 14: Thank You

    Thank You

  15. Slide 15: Supplemental Business Information

    Supplemental Business Information

  16. Slide 16: NetLink Trust's pricing for its services

    NetLink Trust’s pricing for its services Pricing of NLT’s principal services are regulated by IMDA • IMDA shall hold a review of pricing terms every five years following the last price review, or at any such time as IMDA may consider appropriate (which may include a mid-term review in the third year

  17. Slide 17: NetLink Trust's pricing for its services: RAB framework

    NetLink Trust’s pricing for its services Framework for RAB Based Pricing Model Methodology for RAB based pricing model 1 1 • Base year of the RAB is 2012 RAB WACC – Assets purchased up to 2012 are valued at 2012 Cost Base prices for RAB – Assets purchased after 2012 are valued at actual cost 2 2 • N

  18. Slide 18: Understanding the ICO pricing framework

    Understanding the ICO pricing framework Illustrative Worked Example How Does EAC Work for 1 Year’s Outflow on Capex? Assuming Opening RAB of S$1Bn, WACC of 7.0% and Asset Useful Life of 10 Years EAC (S$ MM) RAB (S$MM) 300 1,000 750 200 142 142 142 142 142 142 142 142 142 142 500 34 26 18 9 65 60 54

NetLink NBN Trust — Investor Presentation (November 2019) on 6ix