Sunevision Holdings Ltd. · HKEX:1686
Sunevision — FY2021/22 Earnings Presentation
30 slides from Sunevision's earnings presentation, September 2022
Slide 1: FY21/22 Results Presentation
FY21/22 RESULTS PRESENTATION (HKSE: 1686) September 2022
Slide 2: Disclaimer
DISCLAIMER The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, recommendation or suggestion by SUNeVision Holdings Limited
Slide 3: SUNeVision at a Glance
SUNeVision AT A GLANCE The largest Hong Kong based data centre service provider with differentiating capabilities Largest Scalable Carrier - Neutral 6 Existing Data Centres + 2 Pipeline Projects + 2 Cable Landing Stations 200+ ~26% Newly Upcoming carriers, ISPs & market share¹ Operated other service
Slide 4: Proven Track Record of Growth Over 22 Years
PROVEN TRACK RECORD OF GROWTH OVER 22 YEARS 1 2 3 4 22 years track record of Consistently maintained Over HK$20.2b of total Strong revenue CAGR of developing data centre portfolio industry leading EBITDA margins capital invested over the years1 13% from FY2017–2022 and building strong clientele of o
Slide 5: Next Chapter of Sustainable Growth
NEXT CHAPTER OF SUSTAINABLE GROWTH An accelerating expansion in IT capacity and connectivity
Slide 6: Expansion Plan Progression as Scheduled
EXPANSION PLAN PROGRESSION AS SCHEDULED … Foreseeable growth with MEGA Gateway (TWTL 428) and MEGA IDC – Phase 1 (TKOTL 131) ready for service within the next 3-9 months, coupling with the newly operated MEGA Fanling Capacity Expansion Plan (MW) 4x in Total IT Power Capacity 130+ 280+ 50 20 10 80 70
Slide 7: New Infrastructures
... ADVANCING SUNEVISION TO NEXT CHAPTER OF SUSTAINABLE GROWTH WITH AN EXPANDED DATA CENTRE PORTFOLIO MEGA Campus Cable Landing Stations New Infrastructures Gateway Fanling HKIS-1 HKIS-2 MEGA MEGA MEGA IDC Location Fanling Tsuen Wan Tseung Kwan O Chung Hom Kok Chung Hom Kok GFA 129k sq. ft. 201k sq.
Slide 8: Project Update (Construction Progress)
PROJECT UPDATE (CONSTRUCTION PROGRESS) Despite the ongoing challenges with global supply chains and logistics, construction of the new data centre projects has progressed to the final stages MEGA Fanling MEGA Gateway MEGA IDC ▪ Opening date: 1H-CY2022 ▪ Opening date: 2H-CY2022 ▪ Opening date: 1H-CY2
Slide 9: Pre-Launch Commitments and Pipelines
PRE-LAUNCH COMMITMENTS AND PIPELINES MEGA MEGAGateway Gateway MEGA Fanling ▪ Project on schedule for Q4 opening ▪ Remarkable interest levels with 60% pre- commitment within 12 months of presales ▪ Mix of hyperscale and colocation customers ▪ Portfolio of global, regional and local relationships ▪ Qu
Slide 10: Boost in Connectivity by Cable Landing Stations
BOOST IN CONNECTIVITY BY CABLE LANDING STATIONS Apart from the successful launch of the first carrier-neutral cable landing station in 2021, SUNeVision secured the second cable landing site in Chung Hom Kok, further strengthening SUNeVision’s position as the leading connectivity hub in Asia Carrier-
Slide 11: Update on Judicial Review
UPDATE ON JUDICIAL REVIEW A fair and healthy environment is beneficial to every participant in innovation and technology industry Sep 2018 • SUNeVision applied for judicial review to challenge HKSTP’s decision not to take immediate steps to rectify the failure / refusal to take reasonable steps to e
Slide 12: ESG and Sustainability Initiatives
ESG AND SUSTAINABILITY INITIATIVES SUNeVision believes sustainability is key to a successful business, implementing sustainable initiatives from environmental-friendly DC designs to community investment to structured employment and labor practices that attract top talents Environment Awards ✓ Ambiti
Slide 13: FY2021/22 Financial Highlights
FY2021/22 FINANCIAL HIGHLIGHTS
Slide 14: FY21/22 Highlights
FY21/22 HIGHLIGHTS SUNeVision is pleased to announce another strong full year results for FY2021/22 amid global uncertainties ✓ Revenue increased 11% YoY to HK$2,086mn ✓ Revenue from data centre and IT facilities increased 11% YoY to HK$1,940mn Financial Results1 ✓ EBITDA grew 11% YoY to HK$1,495mn
Slide 15: Stable Revenue Growth Driven by Demand from Customers
STABLE REVENUE GROWTH DRIVEN BY DEMAND FROM CUSTOMERS Sustainable revenue growth on the back of strong demand from hyperscale customers for high-tier data centre and the Group’s timely expansion of data centre capacity, as well as the Group’s leading position in connectivity Net Revenue¹ (HK$mn) Tot
Slide 16: Healthy EBITDA Growth and Margins
HEALTHY EBITDA GROWTH AND MARGINS EBITDA growth continues on the back of strong revenue growth and strong yet sustainable EBITDA margins from increased operating leverage Net Revenue¹ – Annual EBITDA²,³ and EBITDA Margin²,³ (HK$mn) (HK$mn) 2,000 72% 72% 69% 70% 1,800 64% 1,600 2,086 1,501 60% 6 1,87
Slide 17: Business Model Provides Protection Against Inflation
BUSINESS MODEL PROVIDES PROTECTION AGAINST INFLATION Impact of inflation remains under control by implementing effectives measures Challenges Mitigants Hyperscale Rising Electricity ✓ All electricity bill pass-through to customers Prices Colocation ✓ Annual renewal of contracts allow for price adjus
Slide 18: Proportional Dividend per Share to Net Profit After Tax
PROPORTIONAL DIVIDEND PER SHARE TO NET PROFIT AFTER TAX 1,600 60% Attractive dividend per share on the back of sustainable and continuous growth in NPAT 1,400 NPAT1,2 Dividend Per Share5 50% (HK$mn) 1,200 (HK cents) 41% 40% 40% 40% 40% 1,000 5 847 20.8 788 6- 19.4 800 30% 14 709 17.5 670 15 16.5 42
Slide 19: Attractive Dividend Growth for Shareholders
ATTRACTIVE DIVIDEND GROWTH FOR SHAREHOLDERS SUNeVision provides stable and sustainable dividend growth for investors DPS – Ordinary Share (HK cents) Accumulated Ordinary Share & Convertible Note Dividend: HK$6.5bn since 2004 20.8 19.4 17.5 16.5 DPS Growth 15.1 10.1 11.5 12.3 12.6 13.7 ~14X Since 200
Slide 20: Strong Funding Platform with Competitive Financing Cost
STRONG FUNDING PLATFORM WITH COMPETITIVE FINANCING COST Access to competitively priced bank financing and strong financial support by major shareholder Net debt / EBITDA Debt structure as of 30 June 2022 (HK$mn) Shareholder's loan 32% Total debt: HK$11.9bn 7.5x 7.3x 7.5x 7.7x HK$3.8bn 4.3x 4.6x 5.1x
Slide 21: Thank You
THANK YOU oxahed
Slide 22: Appendix
APPENDIX
Slide 23: Corporate Highlights
Sizable and growing addressable market 1 driven by secular tailwinds Largest IDC player with best-in-class assets 2 in strategic locations across Hong Kong Diversified, quality and sticky 3 client base CORPORATE HIGHLIGHTS 4 Strong future growth pipeline SUNeVision is a leading data centre service p
Slide 24: Sizable and Growing Addressable Market Driven by Secular Tailwinds
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY SECULAR TAILWINDS Unprecedented demand for data and traffic continues to drive demand for DC services. HK is a global DC hub in the fastest growing region for DC Demand for data and traffic HK public cloud market1 HK data centre market2 Cloud Softwa
Slide 25: Hong Kong – Global Connectivity Hub
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY SECULAR TAILWINDS Hong Kong – global connectivity hub with subsea cables concentrated around the city Hong Kong as Key Hub for Data Traffic Growth Japan ✓ Geographical location, strong subsea cable China Korea Tokyo connections & well-established co
Slide 26: Reliable Power Supply and Supportive Government Policies
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY SECULAR TAILWINDS Reliable and abundant power supply and supportive government policies further serve as HK’s competitive advantages for data centre services Reliable and Abundant Power Supply1 Supportive Government Policies2 • HK has 2 power compan
Slide 27: Largest IDC Player with Best-in-Class Assets in Strategic Locations
2 LARGEST IDC PLAYER WITH BEST-IN-CLASS ASSETS IN STRATEGIC LOCATIONS ACROSS HONG KONG Scalable data centre portfolio with strategic locations in Hong Kong SUNeVision’s IDCs and Cable Landing Station are Developed in Strategic Strategic Focus in HK Locations in HK Scale and cluster effect Gateway to
Slide 28: Diversified, Quality and Sticky Client Base
3 DIVERSIFIED, QUALITY AND STICKY CLIENT BASE Diversified clientele with robust and accelerating demand from both hyperscale and retail customers, with top 5 customers accounted for ~48% of data centre revenue Top DC Ecosystems in HK* Clients’ Demand SUNeVision’s Solution (% of Market Ecosystem) • D
Slide 29: Proven Dual Core Strategy for Future Growth
4 PROVEN DUAL CORE STRATEGY FOR FUTURE GROWTH Full Asset Ownership Model ✓ Provides Company with superior control in managing underlying properties – Decisions optimised based on business needs Asset Light Model – Long-term stability an important consideration MEGA-i for DC clients (Chai Wan) ✓ Limi
Slide 30: Industry Veteran Management and Strategic Shareholder Support
5 INDUSTRY VETERAN MANAGEMENT AND STRATEGIC SHAREHOLDER SUPPORT Veteran management and strong backing by strategic shareholder, enabling the fastest and most efficient high-tier data centre build in Hong Kong Industry Veteran Management Key Leadership Raymond Tong Martin Chan Fiona Lau Alvin Hui Hel
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