Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — Macquarie Corporate Telecommunications Holdings — FY2004 Earnings Presentation
22 slides from Macquarie Technology's earnings presentation, Aug 31, 2004
Slide 1: Macquarie Corporate Telecommunications Holdings Limited
ens Macquarie Corporate Telecommunications Holdings Limited Next generation integrated 17 andiieleca!
Slide 2: Year in Review
Year in Review Financial Highlights Australian Data Business Australian Voice Business Mobiles Business Singapore Business 1. 2. 3. 4. 5. 6. 8. 9. Regulatory Financials 10. Intelligent Business Network 11. Outlook Adding value through strategi¢
Slide 3: Macquarie is executing on its strategy
Macquarie is executing on its strategy + EBITDA profit of $7.9 million, up $5.1 million on pep * Total service revenues down by 3.2% on pcp - Revenue mix improving - Data revenues up - Voice revenue under pressure Macquarie is in a strong financial position + Strong cash position of $31.8 million *
Slide 4: Revenue growth
a ee 1 PYOS FY04 20% Revenue Grn)
Slide 5: Converged Services Target Markets
Converged Services Target Markets Security
Slide 6: Strong revenue growth up 25.3% on FY03 to $51.1 million
+ Strong revenue growth up 25.3% on FY03 to $51.1 million * All growth is organic * Data 24.5% of total revenue in second half of year Date services revenue 7 — : 154 & 4 qH08 2608 440A. Dd. a BData Revenue % @ Other Revenue % Data Business achieves EBITD,
Slide 7: Data revenue growth derived from leveraging of competitive strengths
+ Data revenue growth derived from leveraging of competitive strengths in data services * “Gateway” certification and increasing security awareness drives momentum in Data hosting revenue growth * Macquarie is well placed to benefit from the convergence in telecommunications and its inherent securit
Slide 8: Voice service revenue of $161.5 million down $20.7 on FY03
* Voice service revenue of $161.5 million down $20.7 on FY03 $93.9 $884 $85.3 $76.2 Long Distance Voice revenues reduced due
Slide 9: Voice EBITDA of $13.2 million up 1.9% on FY03
* Voice EBITDA of $13.2 million up 1.9% on FY03 Voice EBITDA Volce Carrier Cast ow _ - 7 Poa 7 BOs @4 asa + 7 PRES al SGA ay 46.0 4 7 Bs a | x 44 7 SB.O% 6 Bae + + + 50.0% 4 Bie WA, hd, THOS BHO’ EDS 204
Slide 10: Mobiles revenues of $4.1 million
* Revenues of $4.1 million * Competitive necessity for bundled solutions * Integrated mobile billing and real time reporting * EBITDA loss of $2.4 million in line with expectation Mobile services combat com
Slide 11: Singapore revenue down 9.7% on FY03 to $10.1 million
* Revenue down 9.7% on FY03 to $10.1 million *« Revenue growth adversely affected by price reductions and SGD depreciation against AUD + Revenue flat in local currency
Slide 12: Year on Year
Year on Year OS ee 8 excel CuBlOmer Mum Oere) PY LISS PESO Revenue from services 234.5 226.9 (3.2%) Carrier Costs 173.2 156.4 (9.7%) Personnel Costs 39.7 43.3 9.1% Other Operating Costs 18.8 19.2 2.2% Total Costs 231.7 218.9 (5.5%) EBITDA 2.8 79 184.3% Depreciation & Amortisation 9.1 8.7 EBIT (6.3)
Slide 13: Half on Half Financials
Firaneials Half on Half (% eyilons except customer nurmbers) TAGS BOS 404 BRO ‘Revenue from services. ——~CSBS”~=~iLKSSSC«SSSC Carrier Costs 89.8 83.4 81.2 75.2 Personnel Costs 19.5 20.2 20.8 22.5 Other Operating Costs 8.1 10.7 10.1 9.1 Total Costs 117.4 114.3 112.2 106.7 EBITDA 0.7 2.1 3.7 4.2 Depre
Slide 14: Gross Profit
' Gross Profit $millions 40 5 35 4 Ml Gross Profit 30 5 ° 25 - 20-12 2 - ae wl : 10 - 5 4 0 r - r r 1HOO =. 2HO0 1HO1 2HO1 1HO2 = 2HO2 1HO3 2HO3 1HO4 2H04 Gross profit benefits from i
Slide 15: EBITDA
Slide 16: — = = = s ew @ =~ — Ete) ” = = s
— = = = s ew @ =~ — Ete) 3 ” = = 5 2 s ¢ 2 = 5 = > | 2 Ba F o 2 : c eo & i Ye = & A Ss -& § & a
Slide 17: Data breaks even at EBITDA
Data breaks even at EBI fc Corp Office Mobiles Singapore Data Voice Corp Office Mobiles Singapore Data Voice Tot, FY2ZO04 (6.1) (2.4) (1.0) 42 13.2 PYAZOG4 (6.1) (2.5) (1.9) 0.0 97 (0.8)
Slide 18: Strong Balance Sheet
' Strong Bal * Strong cash position of $31.8 million * Positive net cash flow of $1.9 million + Positive operating cash flow of $14.0 million * Capex of $11.3 million * No Debt Strong balance sheet with opti
Slide 19: Regulatory
* Final ACCC decision on mobile terminating rates * Access undertakings ~ ACCC decisions pending (PSTN interconnect, ULL, Local calls) « Federal election
Slide 20: Intelligent Business Network
igent * Capital investment program to establish an IP based Intelligent Business Network + Represents the next stage of Macquarie’s evolution * Provide ability to leverage the increasing convergence of data and voice data telecommunications * The new IP Network will enhance capacity for product deve
Slide 21: Outlook: investment in IP based products and services
* Significant investment of resources in IP based products and services + Additional investment in marketing and branding within the corporate and government sectors + EBITDA profitability impacted in the short term by investments in marketing, infrastructure and depth of expertise * EBITDA for firs
Slide 22: Macquarie Corporate Telecommunications Holdings Limited
: 6 iat | Volce : Dae Macquarie Corporate Telecommunications Holdings Limited Next generation integrated 17 a
Macquarie Corporate Telecommunications Holdings — FY2004 Earnings Presentation on 6ix