Nextdc Limited · ASX:NXT
Nextdc — Non-Deal Roadshow (October 2014)
41 slides from Nextdc's roadshow presentation, Oct 6, 2014
Slide 1: US investor roadshow October 2014
For personal use only US investor roadshow October 2014 NEXTDC LIMITED ACN 143 582 521 www.nextdc.com | 13 NEXT 1
Slide 2: NEXTDC is building Australia's leading independent market place for the digital economy
For personal use only NEXTDC is building Australia’s leading independent market place for the digital economy 2
Slide 3: For personal use only
For personal use only NEXTDC US ROADSHOW – OCT 2014 3
Slide 4: The NEXT generation data centre
The NEXT generation data centre For personal use only NEXTDC US ROADSHOW – OCT 2014 4
Slide 5: Fully certified Tier III provider
Fully certified Tier III provider Uptime Institute For personal use only Sydney (September 2013) and P1 Perth (February 2014) achieved UTI Tier III certification Tier III certification for design and construction. M1 Melbourne (October 2013) achieved UTI Tier III certification for design. Certificat
Slide 6: NEXTDC has come a long way in a short space of time
NEXTDC has come a long way in a short space of time… For personal use only NEXTDC US ROADSHOW – OCT 2014 6
Slide 7: NEXTDC's strategy and product suite is a key differentiator
For personal use only NEXTDC’s strategy and product suite is a key differentiator from other providers 7
Slide 8: NEXTDC's strategic focus
NEXTDC’s strategic focus For personal use only NEXTDC US ROADSHOW – OCT 2014 8
Slide 9: NEXTDC data centres are a marketplace for the digital economy
NEXTDC data centres are a marketplace for the digital economy For personal use only NEXTDC US ROADSHOW – OCT 2014 9
Slide 10: NEXTDC is Where the cloud lives
NEXTDC is Where the cloud livesTM Consumption economics is a powerful driver of hybrid cloud and colocation For personal use only NEXTDC customers enjoy a wide choice of public, private and hybrid cloud solutions through our nationwide community of interconnected cloud buyers and sellers. They can i
Slide 11: NEXTDC product and services portfolio
NEXTDC product and services portfolio For personal use only Rack Ready Whitespace Cross Connects Services Portal & Mobile BCP space Energy-efficient hot or Our custom whitespace One-to-one, secure Technical services, Our award winning NXTdesk features cold aisle containment, offers complete privacy
Slide 12: The NEXTDC Partner Program advantage
The NEXTDC Partner Program advantage For personal use only The NEXTDC Cloud Centre Community Cloud Centre is the driving force behind our ecosystem. It’s here businesses connect and leverage the combined capacity of the enterprises hard at work in this diverse and rapidly growing commercial environm
Slide 13: Announcing ONEDC Software-as-a-Service
Announcing ONEDC® Software-as-a-Service ONEDC® is an open, vendor-independent, subscription SaaS platform for managing data centre intelligence (DCI). For personal use only We’re focused on helping our customers efficiently manage their IT infrastructure stored in data centres anywhere in the world
Slide 14: Attractive market fundamentals will drive long term growth
For personal use only Attractive market fundamentals will drive long term growth 14
Slide 15: Australian colocation data centre growth
Australian colocation data centre growth Frost & Sullivan Australian Data Centre Services 2014 For personal use only Outsourced data centre Revenue At the end of 2013 the DC Services 2013 space2020 2013 2020 market grew to $698m representing 230,000m2 500,000m2 $698m $1,737m 17% growth over the cour
Slide 16: What's driving the move to colocation data centres
What’s driving the move to colocation data centres Key drivers of data centre growth and investment in Australia What’s driving the move to cloud computing For personal use only By % of surveyed Australian organisations 73% 61% 59% 33% Compute costs 1990-2013 Network Access to Cost of connectivity c
Slide 17: Australia's cloud computing growth
Australia’s cloud computing growth ANZ region cloud computing market growth For personal use only 65% of respondents expect investments to centre on private or a hybrid cloud approach over the next 12-18 months.1 25.5% Nearly half of large enterprises will have hybrid cloud deployments by the end of
Slide 18: Australian DC colocation market landscape
Australian DC colocation market landscape Total Australian market Australian carrier neutral market share share by size (m2) For personal use only by size (m2) by number of locations Market size 250,000m2+ “[NEXTDC] is the only true carrier neutral data centre operator with a strategic footprint in
Slide 19: NEXTDC has achieved strong growth across key operating metrics
For personal use only NEXTDC has achieved strong growth across key operating metrics
Slide 20: Strong development in sales finance metrics
Strong development in sales finance metrics Cumulative Incremental $m Interconnection For personal use only contracted MW per MW achieved (number of cross connects) 1500 12 6 1,488 11.86 10 5 1200 5.1 9.74 8 4 900 6 3 2.9 600 4 2 513 300 2 1 0 0 0 FY13 FY14 FY13 FY14 FY13 FY14 Contracted MW $5.1m pe
Slide 21: Pipeline conversion
Pipeline conversion Pipeline and annualized contracted recurring revenue Customer agreements For personal use only Annualized unweighted pipeline at 30 June of $144m 1 The Master Services Agreement (MSA) sets out the general terms and 21% growth in annualized unweighted pipeline conditions upon
Slide 22: Ecosystem growth
Ecosystem growth Customer Service Orders Cross Connects (interconnections) For personal use only 800 1600 Service orders reflect the number of orders for NEXTDC cross connect services provide a physical services received under an MSA. cable connection to link customers’ racks to each 1,488 722 other
Slide 23: Leveraging platform through inflection point to drive strong earnings growth
For personal use only Leveraging platform through inflection point to drive strong earnings growth 23
Slide 24: Outlook for FY15
Outlook for FY15 For personal use only New sales for FY15 between 2.4MW and 3.0MW1 FY15 Q1 sales progress (1 July to 22 August) 621kW, with P1 Perth contributing 257kW Rate More than 250 cross connects added since 1 July of sales Leveraging benefits of scale – national footprint, service provi
Slide 25: In summary
In summary… For personal use only NEXTDC is Australia’s leading independent Data-Centre-as-a- Service provider NEXTDC’s strategy and product suite is a key differentiator from other providers Attractive market fundamentals will drive long term growth NEXTDC is achieving strong growth across
Slide 26: Appendices
For personal use only Appendices 26
Slide 27: Facilities' capacities and contracted utilization
Facilities’ capacities and contracted utilization As at 30 June 2014 12 For personal use only M1 Melbourne Contracted utilization Two data hall additions, adding 4MW capacity 10 Future build Built S1 Sydney 8 Commenced operations in September 2013 with 3.1 MW capacity MW 6 Second data hall add
Slide 28: Established facilities generating positive EBITDA
3 “established” For personal use only facilities generating positive EBITDA 28
Slide 29: Case Study – B1 Brisbane
Case Study – B1 Brisbane 1,2 Active utilization Highlights For personal use only Facility EBITDA ($m) Facility EBITDA NEXTDC’s first facility, H1 FY12 H2 FY12 H1 FY13 H2 FY13 H1 FY14 H2 FY14 3.5 70% commenced operations in October 2011 3.0 60% 2.5 Breakeven reached 50% 2.0 after 9 months of 40%
Slide 30: Case Study – M1 Melbourne
Case Study – M1 Melbourne 1 Active utilization For personal use only Facility EBITDA ($m) Facility EBITDA Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 3.5 50% 3.0 40% 2.5 2.0 30% 1.5 1.0 20% Highlights 0.5 10% NEXTDC’s second facility, commenced operations in September 0.0 2012 -0.5 0%
Slide 31: Case Study – S1 Sydney
Case Study – S1 Sydney 1 For personal use only Facility EBITDA ($m) Q2 FY14 Q3 FY14 Q4 FY14 0.8 33% Active utilization 0.6 32% Facility EBITDA 0.4 31% 0.2 30% 0.0 29% -0.2 28% Highlights -0.4 27% NEXTDC’s fourth facility, commenced operations in September 2013 -0.6 26% Breakeven reached after 7
Slide 32: Inflection point reached in FY14
For personal use only Inflection point reached in FY14 32
Slide 33: FY14 highlights
FY14 highlights Inflection point reached For personal use only Strong Data centre services revenue up 237% to $30.4m revenue Annualized contracted recurring revenue up 36% to $41.7m growth Average price per MW achieved of $5.1m Impressive Contracted customer utilization up 22% to 11.9MW key
Slide 34: Diversified recurring revenue model
Diversified recurring revenue model Metrics calculated as at 30 June 2014 For personal use only Customer by industry Utilisation by density National coverage 4% 2% 1% 4% 6% Cloud 13% 4% Enterprise 6 kW+ 1 location 6% 34% 38% 16% Connectivity 5 kW 2 locations Digital media 4 kW 3 locations 22% System
Slide 35: FY14 profit and loss summary
FY14 profit and loss summary For personal use only FY14 FY13 Change Statutory financial results: ($m) ($m) ($m) Increase in data centre services revenue with contribution Revenue from continuing operations: from all 5 operating data centres from February 2014 Data centre services revenue 30.4 9.0 21
Slide 36: FY14 profit and loss summary – underlying
FY14 profit and loss summary – underlying For personal use only FY14 FY13 Change Non-statutory financial metrics for the year ($m) ($m) ($m) include1: FY14 EBITDA is a non-statutory financial metric calculated as loss after tax attributable to members ($22.9m) plus tax ($3.0m), depreciation ($10.3m)
Slide 37: Significant lift in revenue and utilization levels
Significant lift in revenue and utilization levels FY14 data centre services revenue of $30.4m FY14 contracted utilization of 11.9MW For personal use only Revenue up 65% half on half and 237% year on year Contracted utilization up 11% half on half and 22% year on Recurring revenue represents 8
Slide 38: Strong balance sheet
Strong balance sheet For personal use only 30 June 2014 30 June 2013 Investment Note ($m) ($m) $91.0m invested Cash and term deposits 70.8 51.4 M1 Melbourne halls 4 and 5 fitout completed Property, plant, equipment 1 207.8 127.1 S1 Sydney halls 1 and 3 fitout completed Net assets 223.6 196.4 P
Slide 39: FY14 cash flow profile
FY14 cash flow profile Increased cash balance For personal use only Sources Uses $0.8m $24.1m $103.4m $28.1m $53.7m $10.6m $50.4m $23.5m $0.2m $27.9m $70.8m $51.4m Cash and Equity Unsecured Proceeds Building Other Fitout capital Building Cashflow Other Cash and term raisings (net notes raising from
Slide 40: Growth platform in place
Growth platform in place Historical capital expenditure Installed capacity vs contracted utilization For personal use only Future capital expenditure tied to customer demand FY14 capacity added of 10.7MW to leverage scale of existing facilities 7.8MW available for sale $214m fitout expenditure t
Slide 41: More information
More information For personal use only DISCLAIMER: The information may not be reproduced or distributed to any third party or published in whole or in part for any purpose. The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription,