Aussie Broadband Ltd. · ASX:ABB
Aussie Broadband — Merger or Acquisition (November 2023)
37 slides from Aussie Broadband's merger presentation, Nov 2, 2023
Slide 1: Update on Symbio transaction and equity raising
Update on Symbio transaction and equity raising 2 November 2023 Not for release to US wire services or distribution in the United States 1
Slide 2: We acknowledge
We acknowledge Aussie Broadband acknowledges Aboriginal and Torres Strait Islanders as the First Australians, and their role as the original communicators, connectors, and carers of the land and waters across Australia. We pay our respects to Elders past and present. We commit to working respectfull
Slide 3: Important notice and disclaimer
Important notice and disclaimer Important information Not an offer This presentation (Presentation) has been prepared by Aussie Broadband Limited (Aussie Broadband or ABB) in The Placement will be conducted under section 708A of the Corporations Act 2001 (Cth) (Corporations Act) as relation to: modi
Slide 4: Important notice and disclaimer
Important notice and disclaimer Aussie Broadband does not guarantee any particular rate of return or the performance of Aussie Broadband, nor Future performance does it guarantee any particular tax treatment. Investors should have regard to (amongst other things) the risk Forward-looking statements
Slide 5: Important notice and disclaimer
Important notice and disclaimer The Underwriters Disclosure No party other than Aussie Broadband has authorised or caused the issue, lodgement, submission, dispatch or Each Underwriter, together with their respective affiliates and related bodies corporate, is a full service financial provision of t
Slide 6: Important notice and disclaimer
Important notice and disclaimer These transactions may, together with other shares in Aussie Broadband acquired by the Underwriters or their respective affiliates in connection with their ordinary course sales and trading, principal investing and other activities, result in the Underwriters or their
Slide 7: Executive summary
Executive summary • Continuing to execute on strategy and build scale across our segments • Strong FY23 results with growth across all key metrics including revenue of $788m (up 23.1%), EBITDA of Aussie Broadband $89.6m (up 52.1%) and broadband connections of 691k (up 18.2%) Key Business • Successfu
Slide 8: Aussie Broadband Key Business Highlights
Aussie Broadband Key Business Highlights 8 Not for release to US wire services or distribution in the United States
Slide 9: Delivering our strategy
Delivering our strategy Continuing to build scale across our segments In FY23 Aussie Broadband: Built a strong and resilient network while delivering quality communications services and exceptional customer experiences for Residential and all other segments Accelerated growth across our Business, En
Slide 10: FY23 highlights
FY23 highlights Delivered strong growth across all key metrics vs pcp1 $788.0m 35.4% $89.6m $116.7m Revenue Gross Margin EBITDA Op Cash Flow2 Up 23.1% Up 2.1 ppt Up 52.1% Up 147.2% nbn® Market Broadband Share3 Connections 7.6% 691k Up 1.1 ppt Up 18.2% 1. Prior year comparable (pcp) calculated based
Slide 11: Successful integration of Over the Wire
Successful integration of Over the Wire FY23 exit run rate synergy of $6.0m achieved, driven by quick network and Aussie Broadband voice wins, removal of operational duplication and other efficiency gains transformed into multi- segmented technology Team integration between Aussie Broadband and
Slide 12: Expanding our reach
Expanding our reach Investing in our infrastructure capability Aussie Fibre Tier 1 Voice Network Cloud Platform 1,426km 144.1m 10,000+ Tbs Aussie Fibre rolled out Average Voice Minutes Per Month Cloud storage under management About Aussie’s Fibre Network: About Aussie’s Tier 1 Voice Network: About A
Slide 13: FY24 guidance reaffirmed
FY24 guidance reaffirmed Building on momentum to further accelerate non-residential segments 1QFY24 saw broadband connections grow by more than 40,000 (inclusive of 8,700 from the Uniti acquisition) Strongest organic growth quarter in the past 18 months driven by FY24 Guidance (ex. Symbio) increased
Slide 14: Update on Symbio transaction
Update on Symbio transaction 14 Not for release to US wire services or distribution in the United States
Slide 15: Transaction summary
Transaction summary • Highly complementary to existing Aussie Broadband business and strategy • Combined entity will be attractively positioned as a scale, diversified modern voice, business and unified communications player in Australia Strategic rationale • Opportunity to fast-track presence in Wh
Slide 16: Transaction summary (cont.)
Transaction summary (cont.) • Proposed transaction expected to be EPS accretive in the first full financial year after completion, before synergies1 Financial • ABB to maintain a conservative net leverage profile, with pro forma FY23 leverage expected to be ~1.5x2 highlights • Combined pro-forma sta
Slide 17: Strategic rationale
Strategic rationale A scale, diversified modern voice, business and unified communications player in Australia Accelerates significant growth in Wholesale and Enterprise & Government segments 1 Fast track Aussie Broadband’s presence in Wholesale and Enterprise & Government segments and grow post OTW
Slide 18: Symbio overview
Symbio overview Leading communications software company and provider of SaaS capabilities • Founded in 2002 by Rene Sugo and Andy Fung Gross margin Key customers / contribution Description partners • Operations in Australia, New Zealand, Singapore and Malaysia, with (FY23A) planned expansion into Ta
Slide 19: Key highlights and strategic alignment
Key highlights and strategic alignment Highly strategic acquisition of a “Fixed Voice as a Service” player Key highlights Strong strategic alignment and highly complementary Offering and competitive advantage Key added value for ABB Owned tier 1 carrier network that is specifically dedicated to vo
Slide 20: Fixed Voice as a Service
Fixed Voice as a Service Enhancing our competitive position in an underserved, attractive growth product Voice over internet protocol growth Symbio’s capabilities • Benefit from shift to hybrid working and cloud based communications • Transition away from traditional telephone lines Tier 1 voice c
Slide 21: Diversification benefits
Diversification benefits Providing more products to our business customers Pro Forma 11% 10% 7% Residential Residential Revenue Revenue Business 13% Business = CPaaS and TaaS Wholesale 11% 65% + UCaaS Wholesale 30% 51% E&G E&G 9% 93% $788m $211m $999m 16% 9% 14% Gross margin Gross margin Residential
Slide 22: Increased scale (pro forma FY23 actuals)
Increased scale (pro forma FY23 actuals) Delivering on our goal to be a leading provider of communications and technology services in Australia FY23 Revenue ($m) 999 ~$1bn• Combined pro-forma FY23 revenue, exclusive of any synergies +27% 788 49%• Pro forma FY23 business revenue contribution Pre-acqu
Slide 23: Scheme overview
Scheme overview • Aussie Broadband and Symbio have entered into a Scheme Implementation Agreement (SIA) which governs Summary the terms upon which Symbio will propose and implement the Scheme with its shareholders • Implementation of the Scheme is subject to a number of conditions including: • Symbi
Slide 24: Equity raising
Equity raising 24 Not for release to US wire services or distribution in the United States
Slide 25: Equity raising overview
Equity raising overview • A$120m institutional placement (Placement), comprising issuance of approximately 34 million new shares at the Placement Price (Placement Shares), equivalent to approximately 14% of Aussie Broadband’s current Offer size and shares on issue of 239 million1 structure • A$15-20
Slide 26: Key dates
Key dates SPP Record Date Wednesday, 1 November 2023 Announcement of Placement and SPP Thursday, 2 November 2023 Announcement of the outcome of the Placement and Friday, 3 November 2023 trading halt lifted Settlement of New Placement Shares Tuesday, 7 November 2023 Allotment and normal trading of Ne
Slide 27: Pro forma balance sheet (FY23 actuals)
Pro forma balance sheet (FY23 actuals) Expected gearing following placement and acquisition close Credit metrics1 Leverage profile1 Pro forma Aussie Pro forma A$m Placement2 ABB + Broadband placement2 Symbio3 1.5 x Cash and cash equivalents 75.1 115.8 190.9 200.1 1.0 x Borrowings 149.3 149.3 339.3 N
Slide 28: Appendix – Key Risks
Appendix 1 – Key Risks 28 Not for release to US wire services or distribution in the United States
Slide 29: Key risks
Key risks This section outlines some of the key risks Key Business Risks However, any failure of such systems may result in Design, construction and development risk associated with an investment in Aussie Broadband reputational damage, regulatory impositions (such As Aussie Broadband continues to c
Slide 30: Key risks
Key risks Labour cost risk Risks may exist in relation to Symbio of which Aussie Any failure to complete, or delay in completing the The loss of a significant portion of these customers Like all businesses currently Aussie Broadband is not Broadband may be unaware, including latent, future Proposed
Slide 31: Key risks
Key risks In addition, Aussie Broadband will be more Economic, political and social conditions in foreign Other socioeconomic and macroeconomic factors Litigation exposed to general risks relating to any jurisdictions that could have a material adverse impact on Aussie Legal proceedings and claims m
Slide 32: Key risks
(iii) x (iv) x (v) x (vi) there is introduced into the Parliament of Key risks the Commonwealth of Australia or any a) X State or Territory of Australia a new or b) X materially revised law or any new c) X regulation is made under any law, or a d) X Government Agency adopts a policy, or e) X (i) x t
Slide 33: Key risks
b) X f) X c) X g) X d) X h) X e) X i) x f) X j) X Key risks g) X k) x h) X l) X i) x m) X j) X n) X k) x o) X l) Aussie Broadband commits a material p) such person in their capacity as such in Aussie Broadband will pay the Underwriters, in breach of the Corporations Act, the relation to any fraudule
Slide 34: Appendix – Key Selling Restrictions
Appendix 2 – Key Selling Restrictions 34 Not for release to US wire services or distribution in the United States
Slide 35: Key selling restrictions
Key selling restrictions This document does not constitute an offer of new ordinary shares The contents of this document have not been reviewed by any Hong Accordingly, this document and any other document or materials in (New Shares) of Aussie Broadband in any jurisdiction in which it would Kong re
Slide 36: Key selling restrictions
Key selling restrictions United Kingdom United States Neither this document nor any other document relating to the offer has This document does not constitute an offer to sell, or a solicitation of been delivered for approval to the Financial Conduct Authority in the an offer to buy, securities in t
Slide 37: Thank you
Thank you Aussie Broadband Limited Investors contact: Aline van Deventer – 0423 553 434 investors@team.aussiebroadband.com.au Authorised for release by the Aussie Broadband Board 37 Not for release to US wire services or distribution in the United States
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