Dxn Ltd. · ASX:DXN
Dxn — Investor Presentation (March 2021)
32 slides from Dxn's investor presentation, Mar 10, 2021
Slide 1: Investor Presentation & Strategic Update
Investor Presentation & Strategic Update March 2021
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by DXN Limited (ACN 620 888 548) (DXN or Company). NOT AN OFFER This presentation is for information purposes only. This presentation does not comprise a prospectus, product disclosure statement or other offering document under Australian law (and will
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation, including information as to the future financial or operating performance of the Company and its assets, are forward looking statements. Such forward looking statements: (a) are necessarily based upon a number of estimates
Slide 4: Contents
Contents 1. Overview 2. Edge Data Centre Strategy 3. Modular Manufacturing 4. Data Centre Operations 5. Appendix • Management & Board • Factsheet 4
Slide 5: DXN designs, manufactures and operates data centres
DXN designs, manufactures, operates and owns data centres that bring critical communication infrastructure closer to where users need it 5
Slide 6: Overview
Overview 6
Slide 7: Design Manufacture and Operate
Design Manufacture and Operate Modular Manufacturing Data Centre Operations • Scalable, purpose-built data • Designed and constructed to meet a client’s centre solutions specific technical, security and operational requirements • Turnkey prefabricated modular data centres 2–500 racks client flexibil
Slide 8: Timeline
Timeline Business Development Milestones Nov 2018 April 2019 Aug 2019 Sept 2019 2021 Modular First undersea cable New management, New focus on pre-fabricated New modular fit for manufacturing landing station with Matthew Madden modular solutions for Subsea purpose commenced focused order signed join
Slide 9: Sample Deployment Locations
Sample Deployment Locations Global Locations Existing DXN Data Centre Facilities 1 Sydney 2 Melbourne Site 3 Tasmania DXN Modules 4 AGIG 5 Teletok 6 SpeedCast Design Phase 1 7 Telcom Niue 13 8 Avaroa Cable Limited 9 Southern Cross Cable Network 10 SES | Networks 14 11 10 6 5 11 SpeedCast Project 2 9
Slide 10: Edge Data Centre Strategy
Edge Data Centre Strategy QDXN Maxine ctobaL Loca 10
Slide 11: Edge Data Centres What is Edge Computing?
Edge Data Centres What is Edge Computing? Current Model: The Cloud New Model: Edge Computing “The Cloud” Centralised Data “The Cloud” Centres Centralised Data Centres Local EDGE Local EDGE Local EDGE Data Centre Data Centre Data Centre Factories, Factories, Households & Households & Offices hospital
Slide 12: Edge Market Drivers
Edge Market Drivers User expectations for improvements in speed & latency Requirement to have closer access to data and customers Expectation for access to data at a lower cost Exponential growth in data & capacity requirements 12
Slide 13: The Regional EDGE Data Centre
The Regional EDGE Data Centre “Our edge data strategy involves building out a number of smaller facilities in regional centres and capital city location outside of Sydney and Melbourne. Hobart Tasmania was our first step towards this goal” 13
Slide 14: DXN's Addressable Markets
DXN’s Addressable Markets Global and local market trends Global Edge Capex Spend (US$b) • The global market for PFM DC* is accelerating at a 160 compound annual growth rate of 14.4%1 Modular • The global addressable market size is currently US$1.6bn 140 Manufacturing • The prefabricated use case is
Slide 15: Market Segments
Market Segments Broad and growing market opportunities Cable Landing Telco and Mining Micro DC EDGE DC Government Stations • Pre-fabricate specific • Purpose built • Plug and play, fully • 1-3 MW deployment • Edge deployment for submarine cable • High quality integrated solution • 100-400 racks • 20
Slide 16: Market Opportunity
Market Opportunity DXN is ideally placed to address the market opportunity Demand for data centres Undersea landing sites in regional and remote across Australia and Asia- areas of Australia - Pac generates demand for brownfield and greenfield adjacent data centre opportunities to build data capabil
Slide 17: Complimentary offering
Complimentary offering DXN designs, manufactures, operates and owns data centres Modular Manufacturing • Pre-fabricated modular (PFM) design allows for scale to be capital efficient • Annual build capacity of up to 100 modules • Growing reputation as a subsea cable landing station (CLS) provider • T
Slide 18: Competitive Advantages – More towards the customer
Competitive Advantages – More towards the customer Australia’s only vertically integrated manufacturer and operator of modular Rapid Deployment data centres DXN Provides a complete solution for Data Centre Infrastructure but is completely Vendor Agnostic vendor agnostic. Modular and Our pre-fabricat
Slide 19: Revenue Streams
Revenue Streams Modular Manufacturing Cross Over Services Data Centre Operations • Engineering Design • Rack and Power Charges Maintenance • Modular Construction • Cross Connect Charges Operations support • Network Services • Site Commissioning • Internet • Connectivity services Once Off Revenue Ann
Slide 20: Modular Manufacturing
Modular Manufacturing 20
Slide 21: Modular Data Centres
Modular Data Centres What is a prefabricated modular data centre? DXN’s modular design Prefabricated data centre The prefabricated data means the data centres modules are built at DXN’s centre is deployed can be deployed in in-house manufacturing to site any location and facility in Perth, WA easily
Slide 22: Modular Data Centres for the Edge
Modular Data Centres for the Edge DXN’s prefabricated modular centres are delivered from a controlled manufacturing facility in Perth and offer customers: Bespoke - specific technical, security and operational requirements Vendor Agnostic Cost control Self contained and transportable Rapid
Slide 23: Capacity & Pipeline
Capacity & Pipeline Strong pipeline and capacity to grow • Maximum manufacturing capacity of 100 modules a year with an extra shift and have further capacity growth • Pivoted sales pipeline targeting from large projects into smaller, modular opportunities • Strong pipeline growth in primary targeted
Slide 24: Edge Data Centre Operations
Edge Data Centre Operations 24
Slide 25: Edge Data Centres
Edge Data Centres Operational advantages Modular construction allows for capital to match capacity requirements Focus on under-served regional markets with latency issues For Data sovereignty and security Customers Centralised cloud data centres are located too far from data source (increases latenc
Slide 26: Greenfield & Brownfield Opportunities
Greenfield & Brownfield Opportunities Annuity and value-add strategies Greenfield Brownfield • Opportunities to develop data centres in • Contracted quality existing customer base major regional areas • Potential to expand sites with a high return • Utilising DXN’s modular infrastructure on investme
Slide 27: Opportunities for Improvement
Opportunities for Improvement Specialist advisors appointed to assist in resolving exposure to loss-making, large-scale data centres Melbourne Melbourne currently running at a loss and a solution would dramatically improve working capital strain Sydney Have turned Sydney into a network hub with
Slide 28: DXN designs, manufactures, operates and owns data centres – Thank you
DXN designs, manufactures, operates and owns data centres that bring critical communication infrastructure closer to where users need it – the EDGE Thank you. 28
Slide 29: Appendix
Appendix 29
Slide 30: Management
Management A structure that will support the growth Matthew Madden CEO and MD Alan Henry Blair Taylor Sri Murugan Shalini Lagrutta Greg Blenkiron Head of DC Head of Head of Head of Sales and CFO Facilities Manufacturing Engineering Marketing Finance DC Management Fabrication Presales Colocation Lega
Slide 31: Board
Board A board with proven experience Matthew Madden John Baillie Richard Carden John Dimitropoulos George Lazarou CEO and MD Non-Exec Chairman Non-Exec Director Non-Exec Director Company Secretary 31
Slide 32: Factsheet / Financials as at Dec 2020
Factsheet / Financials as at Dec 31 2020 December 2020 Half Year Highlights: • Sales $4.1m – an improvement of 65% on H1FY20 • Gross margin 35% - a gain of 158% on H1FY20 • EBITDA loss $225,854 – a 92% improvement on H1FY20 • New contracts secured – $3.6m To be Income Statement Key financials (A$m)