Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — Macquarie Telecom Group — FY2009 Earnings Presentation
23 slides from Macquarie Technology's earnings presentation, August 2009
Slide 1: Full Year Results 2009
Full Year Results 2009 For personal use only Macquarie Telecom
Slide 2: Delivering on Strategy: Profit Momentum
Full Year Results 2009 For personal use only Delivering on Strategy Profit Momentum
Slide 3: Agenda
1. Agenda For personal use only • Full Year in Review • EBITDA Growth • EBIT Growth • Revenue Summary • Australian Data and Hosting Business • Australian Voice Business • Mobiles Business • Asian Business • Financials • Summary
Slide 4: Full Year in Review
2. Full Year in Review For personal use only • EBITDA profit of $25.0 million up 81.9% on pcp. • Strong operating cash flows of $27.6 million up 46.9% on pcp. • EBIT profit up $11.4 million. • Healthy balance sheet with cash & cash equivalents of $35.3 million creates opportunities for investments.
Slide 5: Personal Accountable Service
3. Personal Accountable Service For personal use only • Macquarie Telecom judged on a global stage for the best customer care through the 'Personal Accountable Service' (PAS) program. • PAS is “Our attitude and commitment to delivering a superior experience for our customers through Ownership, Proac
Slide 6: EBITDA Growth
4. EBITDA Growth For personal use only $millions 30 25.0 25 20 13.8 15 11.3 10 4.5 5 - FY06 FY07 FY08 FY09 EBITDA on solid growth path
Slide 7: EBIT Growth
5. EBIT Growth For personal use only 14 $millions 9.7 9 4 -1 (1.7) (4.1) -6 (9.3) -11 FY06 FY07 FY08 FY09 Transition to EBIT profitability
Slide 8: Revenue Summary – FY09
6. Revenue Summary – FY09 For personal use only • Total service revenue up 3.6% to $253.8 million on pcp. • Data & Hosting revenue up 17.6% to $95.5 million on pcp. • Voice revenue down 5.7% to $118.0 million on pcp. • Mobile revenue steady on pcp at $28.1 million. • Singapore revenue up 18.9% to $1
Slide 9: Revenue by Line of Business
7. Revenue by Line of Business For personal use only $millions 250 21.02 26.38 28.14 28.31 11.89 11.03 12.17 10.24 200 66.75 72.08 81.20 95.48 150 100 149.34 145.12 125.15 118.02 50 - FY06 FY07 FY08 FY09 Voice Revenue Data & Hosting Revenue Singapore Revenue Mobile Revenue Ongoing mix change towards
Slide 10: Revenue % mix by Line of Business
8. Revenue % mix by Line of Business For personal use only 8% 10% 12% 11% 5% 4% 4% 5% 27% 28% 33% 38% 60% 57% 51% 46% !" Ongoing mix change towards higher margin business
Slide 11: Australian Data & Hosting Business
9. Australian Data & Hosting Business For personal use only • Data & Hosting revenue up 17.6% on pcp to $95.5 million for FY09. • Data & Hosting 38% of total revenue for the full year. • Corporate & Government Hosting revenue is approximately 35% of Data & Hosting revenue. • Investments in infrastru
Slide 12: Australian Voice Business
10. Australian Voice Business For personal use only • Voice service revenue of $118.0 million down 5.7% on pcp. • Voice revenue reduction primarily attributable to continued industry wide price pressure although customer retention remains strong. • Voice EBITDA grows 96.0% on pcp to $16.0 million. •
Slide 13: Mobile Business
11. Mobile Business For personal use only • Revenues steady at $28.1 million on pcp. • EBITDA profit of $2.1 million up from $1.6 million in pcp. • Continues to be an important element in bundled service solutions. • Growth in sophisticated and secure mobile data products. Mobile data continues to g
Slide 14: Asian Business
12. Asian Business For personal use only • Revenue up 18.9% on pcp to $12.2 million. • Asian EBITDA profit of $1.8 million. • Sale of Macquarie Singapore to CITIC 1616 Holdings completed on 31 July 2009. • Sold for cash consideration of approximately SGD10.5 million. • Macquarie Telecom will be CITI
Slide 15: Financials - Gross Profit
13. Financials - Gross Profit For personal use only 120.0 50.0% 45.0% 100.0 40.0% 43.8% 38.6% 35.0% 80.0 33.4% 34.3% 30.0% 60.0 25.0% 20.0% 40.0 15.0% 10.0% 20.0 5.0% - 0.0% FY06 FY07 FY08 FY09 Gross Margin $m Gross Margin % Gross margin grows in both dollar and % terms
Slide 16: Financials - Opex
14. Financials - Opex For personal use only 100.00 100.0% 90.00 95.0% 80.00 94.6% 90.0% 70.00 85.0% 60.00 87.0% 85.5% 50.00 80.0% 40.00 77.5% 75.0% 30.00 70.0% 20.00 65.0% 10.00 - 60.0% FY06 FY07 FY08 FY09 Opex $m Opex % Gross Margin Opex as a % of gross margin continues to reduce
Slide 17: Financials - EBITDA
15. Financials - EBITDA For personal use only #$ " " % % % % % % % % !" % & % % % % ' % % % ( )* * + &%, +% ', + &%&, + &%, - " % & % ' '% &% Voice share of allocated operating expenses reduced in FY09 as resources are redirected to the Data & Hosting line of business to support future growth. Momen
Slide 18: Financials - Capex
16. Financials - Capex For personal use only 16.00 20.0% 18.0% 14.00 17.7% 16.0% 12.00 14.0% 10.00 13.9% 13.8% 12.0% 11.6% 8.00 10.0% 8.0% 6.00 6.0% 4.00 4.0% 2.00 2.0% - 0.0% FY06 FY07 FY08 FY09 Capex $m Capex % Gross Margin Capex spend remains stable
Slide 19: Financials - Profit & Loss
17. Financials - Profit & Loss For personal use only Year on Year ($ millions) FY08 FY09 Revenue from services 244.9 253.8 Carrier Costs 156.0 148.3 Personnel Costs 53.1 56.2 Other Operating Costs 22.0 24.3 Total Costs 231.1 228.8 EBITDA 13.8 25.0 Depreciation & Amortisation 15.4 15.3 EBIT (1.7) 9.7
Slide 20: Financials - Cash flow
18. Financials - Cash flow For personal use only Year on Year ($ millions) FY08 FY09 Cash flows from Operating Activities 18.8 27.6 Cash flows from Investing Activities (13.2) (13.0) Cash flows from Financing Activities (3.0) (1.8) Net Increase in Cash Held 2.6 12.8 Opening Cash & Cash Equivalents 2
Slide 21: Financials - Cash flow
19. Financials - Cash flow For personal use only • Cash & cash equivalents of $35.3 million at 30 June 2009 (excludes SGD10.5 million proceeds from sale of Singapore business in July 2009). • Strong operating cash flow of $27.6 million. • Net cash inflow of $12.8 million. • Capex $13.0 million. • Ad
Slide 22: Summary
20. Summary For personal use only • Profitable growth • Customer service is a key differentiator • Hosting & Data business performing strongly • Strong and growing operating cash flows and healthy balance sheet Macquarie Telecom is a business with momentum
Slide 23: Full Year Results 2009
Full Year Results 2009 For personal use only Macquarie Telecom
Macquarie Telecom Group — FY2009 Earnings Presentation on 6ix