Slide 1: 2014 Full Year Results
For personal use only 2014 Full Year Results 25 August 2014 NEXTDC LIMITED ACN 143 582 521 www.nextdc.com | 13 NEXT 1
Slide 2: FY14 highlights
FY14 highlights Inflection point reached For personal use only Strong § Data centre services revenue up 237% to $30.4m revenue § Annualised contracted recurring revenue up 36% to $41.7m growth § Average price per MW achieved of $5.1m Impressive § Contracted customer utilisation up 22% to 11.9MW
Slide 3: Agenda
Agenda! For personal use only § FY14 Financial results § FY14 Key performance metrics § FY14 Operational highlights § FY15 Outlook – EBITDA positive § Appendices 3!
Slide 4: Financial results
For personal use only FY2014 Full Year Results Financial results 4!
Slide 5: Full year profit and loss summary
Full year profit and loss summary For personal use only FY14 FY13 Change Statutory financial results: ($m) ($m) ($m) Increase in data centre services revenue with Revenue from continuing operations: contribution from all 5 operating data centres from February 2014 Data centre services revenue 30.4 9
Slide 6: Full year profit and loss summary – underlying
Full year profit and loss summary – underlying For personal use only FY14 FY13 Change Non-statutory financial metrics for the year ($m) ($m) ($m) include1: FY14 EBITDA is a non-statutory financial metric calculated as loss after tax attributable to members ($22.9m) plus tax ($3.0m), depreciation ($1
Slide 7: Significant lift in revenue and utilisation levels
Significant lift in revenue and utilisation levels FY14 data centre services revenue of $30.4m! FY14 contracted utilisation of 11.9MW! For personal use only § Revenue up 65% half on half and 237% year on year § Contracted utilisation up 11% half on half and 22% year on year § Recurring revenue re
Slide 8: Strong balance sheet
Strong balance sheet For personal use only 30 June 2014 30 June 2013 Investment Note ($m) ($m) $91.0m invested Cash and term deposits 70.8 51.4 § M1 Melbourne halls 4 and 5 fitout completed Property, plant, equipment 1 207.8 127.1 § S1 Sydney halls 1 and 3 fitout completed Net assets 223.6 196.4 §
Slide 9: FY14 cash flow profile
FY14 cash flow profile Increased cash balance For personal use only Sources Uses $0.8m $24.1m $103.4m $28.1m $53.7m $10.6m $50.4m $23.5m $0.2m $27.9m $70.8m $51.4m Cash and Equity Unsecured Proceeds Building Other Fitout capital Building Cashflow Other Cash and term raisings (net notes raising from
Slide 10: Growth platform in place
Growth platform in place Historical capital expenditure Installed capacity vs contracted utilisation For personal use only Future capital expenditure tied to customer FY14 capacity added of 10.7MW! demand to leverage scale of existing facilities! § 7.8MW available for sale § $214m fitout expenditu
Slide 11: Key performance metrics
For personal use only FY2014 Full Year Results Key performance metrics
Slide 12: Strong development in sales finance metrics
Strong development in sales finance metrics Cumulative Incremental $m Interconnection For personal use only (number of cross connects) contracted MW per MW achieved 1500 12 6 1,488! 11.86! 10 5 1200 9.74! 5.1! 8 4 900 6 3 600 2.9! 4 2 513! 300 2 1 0 0 0 FY13 FY14 FY13 FY14 FY13 FY14 Contracted MW# $
Slide 13: Diversified recurring revenue model
Diversified recurring revenue model Metrics calculated as at 30 June 2014! For personal use only Customer by industry Utilisation by density National coverage 4% 2% 1% 4% 6% Cloud 13% 4% Enterprise 6 kW+ 1 location 6% 34% 38% 16% Connectivity 5 kW 2 locations Digital media 4 kW 3 locations 22% Syste
Slide 14: Pipeline conversion
Pipeline conversion Pipeline and annualised contracted recurring revenue Customer agreements For personal use only § Annualised unweighted pipeline at 30 June of $144m1 The Master Services Agreement (MSA) sets out the general terms and § 21% growth in annualised unweighted pipeline conditions upon
Slide 15: Ecosystem growth
Ecosystem growth Customer Service Orders Cross Connects (interconnections) For personal use only 800 1600 Service orders reflect the number of orders for NEXTDC cross connect services provide a physical services received under an MSA. cable connection to link customers’ racks to each 1,488 722 other
Slide 16: Operational highlights
For personal use only FY2014 Full Year Results Operational highlights 16!
Slide 17: Facilities' capacities and contracted utilisation
Facilities’ capacities and contracted utilisation As at 30 June 2014! 12 For personal use only M1 Melbourne! Contracted utilisation § Two data hall additions, adding 4MW capacity 10 Future build Built S1 Sydney! 8 § Commenced operations in September 2013 with 3.1 MW capacity MW! 6 § Second data h
Slide 18: Scale drives operating leverage
Scale drives operating leverage Q4 FY14 net revenue1 up to 84% of Costs in context Closing active (billing) utilisation reaches 30%! For personal use only normalised operating costs! Other corporate § Stable cost base creates EBITDA leverage § Net revenue rapidly approaching operating Sales DC mai
Slide 19: Project PLUS: engineering innovation drives inventory growth
Project PLUS: engineering innovation drives inventory growth Incremental capacity at two thirds of the current cost per MW For personal use only § Capability to expand network capacity by 5MW within existing footprint – no requirement for additional land, buildings or fitout of additional halls §
Slide 20: Outlook
For personal use only FY2015 The road ahead Outlook 20!
Slide 21: FY15 Outlook – leveraging growth platform
FY15 Outlook – leveraging growth platform For personal use only New sales for FY15 between 2.4MW and 3.0MW1! § FY15 Q1 sales progress (1 July to 22 August) 621kW, with P1 Perth contributing 257kW Rate § More than 250 cross connects added since 1 July of sales § Leveraging benefits of scale – nati
Slide 22: Inflection point reached / Leveraging growth platform
FY14 FY15 For personal use only Inflection point reached! Leveraging growth platform! § Strong growth in revenue and § EBITDA breakeven in 1H FY15 key performance drivers § Strong pipeline driving new sales § National network footprint § Fixed operating cost base in place complete § Capital ex
Slide 23: Appendices
For personal use only FY2014 Full Year Results Appendices 23!
Slide 24: Case studies
For personal use only FY2014 Full Year Results Case studies 24!
Slide 25: Case Study – B1 Brisbane
Case Study – B1 Brisbane 1,2 Highlights Facility EBITDA ($m) Active utilisation For personal use only Facility EBITDA § NEXTDC’s first facility, H1 FY12 H2 FY12 H1 FY13 H2 FY13 H1 FY14 H2 FY14 3.5 70% commenced operations in October 2011 3.0 60% 2.5 § Breakeven reached after 50% 2.0 9 months of op
Slide 26: Case Study – M1 Melbourne
Case Study – M1 Melbourne 1 Active utilisation Facility EBITDA ($m) For personal use only Facility EBITDA Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 3.5 50% 3.0 40% 2.5 2.0 30% 1.5 1.0 20% Highlights 0.5 10% § NEXTDC’s second facility, commenced operations in September 2012 0.0 Q2 FY13
Slide 27: Case Study – S1 Sydney
Case Study – S1 Sydney 1 Facility EBITDA ($m) For personal use only Q2 FY14 Q3 FY14 Q4 FY14 0.8 33% Active utilisation 0.6 32% Facility EBITDA 0.4 31% 0.2 30% 0.0 29% Q2 FY14 Q3 FY14 Q4 FY14 -0.2 28% Highlights -0.4 27% § NEXTDC’s fourth facility, commenced operations in September 2013 -0.6 26% §
Slide 28: Facility certifications
For personal use only FY2014 Full Year Results Facility certifications 28!
Slide 29: Systems and certifications
Systems and certifications Uptime Institute For personal use only Tier III certification Sydney (September 2013) and P1 Perth (February 2014) achieved UTI Tier III certification for design and construction. M1 Melbourne (October 2013) achieved UTI Tier III certification for design. Certification dem
Slide 30: Business strategy
For personal use only FY2015 The road ahead Business strategy 30!
Slide 31: For personal use only
For personal use only NEXTDC FY14 RESULTS – AUG 2014 31!
Slide 32: The NEXT generation data centre
The NEXT generation data centre For personal use only NEXTDC FY14 RESULTS – AUG 2014 32!
Slide 33: NEXTDC data centres are a marketplace for the digital economy
NEXTDC data centres are a marketplace for the digital economy For personal use only NEXTDC FY14 RESULTS – AUG 2014 33!
Slide 34: NEXTDC is Where the cloud lives
NEXTDC is Where the cloud livesTM Consumption economics is a powerful driver of hybrid cloud and colocation For personal use only NEXTDC customers enjoy a wide choice of public, private and hybrid cloud solutions through our nationwide community of interconnected cloud buyers and sellers. They can i
Slide 35: NEXTDC product and services portfolio
NEXTDC product and services portfolio For personal use only Rack Ready Whitespace Cross Connects Services Portal & Mobile BCP space Energy-efficient hot or Our custom whitespace One-to-one, secure Technical services, Our award winning NXTdesk features # cold aisle containment, offers complete privac
Slide 36: The NEXTDC Partner Program advantage
The NEXTDC Partner Program advantage For personal use only The NEXTDC Cloud Centre Community Cloud Centre is the driving force behind our ecosystem. It’s here businesses connect and leverage the combined capacity of the enterprises hard at work in this diverse and rapidly growing commercial environm
Slide 37: Announcing ONEDC Software-as-a-Service
Announcing ONEDC® Software-as-a-Service ONEDC® is an open, vendor-independent, subscription SaaS platform for managing data centre intelligence (DCI). We’re For personal use only focused on helping our customers efficiently manage their IT infrastructure stored in data centres anywhere in the world
Slide 38: NEXTDC's strategic priorities
NEXTDC’s strategic priorities For personal use only NEXTDC FY14 RESULTS – AUG 2014 38!
Slide 39: Industry and market drivers
For personal use only FY2014 Full Year Results Industry and market drivers 39!
Slide 40: Australian colocation data centre growth
Australian colocation data centre growth Frost & Sullivan Australian Data Centre Services 2014 For personal use only Outsourced data centre space Revenue At the end of 2013 the DC Services 2013 2020 2013 2020 market grew to $698m representing 230,000m2! 500,000m2! $698m! $1,737m! 17% growth over the
Slide 41: What's driving the move to colocation data centres
What’s driving the move to colocation data centres Key drivers of data centre growth and investment in Australia What’s driving the move to cloud computing For personal use only By % of surveyed Australian organisations 73% 61% 59% 33% Compute costs 1990-2013 Network Access to Cost of connectivity c
Slide 42: Australia's cloud computing growth
Australia’s cloud computing growth ANZ region cloud computing market growth For personal use only 65% of respondents expect investments to centre on private or a hybrid cloud approach over the next 12-18 months.1 25.5% Nearly half of large enterprises will have hybrid cloud deployments by the end of
Slide 43: Australian DC colocation market landscape
Australian DC colocation market landscape Total Australian market Australian carrier neutral market share share by size (m2) For personal use only by size (m2) by number of locations Market size 250,000m2+ “[NEXTDC] is the only true carrier neutral data centre operator with a strategic footprint in
Slide 44: More information
More information For personal use only DISCLAIMER: The information may not be reproduced or distributed to any third party or published in whole or in part for any purpose. The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription,