Nextdc Limited · ASX:NXT
Nextdc — Investor Presentation (May 2023)
43 slides from Nextdc's investor presentation, May 11, 2023
Slide 1: Regional Expansion and Entitlement Offer
REGIONAL EXPANSION AND ENTITLEMENT OFFER 11 May 2023 19 NOVEMBER 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Important Disclaimer
IMPORTANT DISCLAIMER Disclaimer This presentation (the “Presentation”) is dated 11 May 2023 and has been prepared by NEXTDC Limited (ACN 143 582 521) (“NEXTDC”) in connection with a fully underwritten pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares (“New Sha
Slide 3: Important Disclaimer (cont.)
IMPORTANT DISCLAIMER (CONT.) advice and must not be relied upon as such. In all cases, recipients should conduct their own investigation and analysis of NEXTDC. Before making an investment decision, you should consider whether such an investment is appropriate to your particular objective, financial
Slide 4: Important Disclaimer (cont.)
IMPORTANT DISCLAIMER (CONT.) of any state or other jurisdiction of the United States. Accordingly, the entitlements may not be taken up or exercised by, and the New Shares may not be offered or sold, directly or indirectly, in the United States or to any person acting for the account or benefit of a
Slide 5: Contents
CONTENTS CONTENTS 6 10 15 20 30 34 40 Summary Regional Entitlement Appendix A Appendix B Appendix C Appendix D Expansion Offer Details Key Risks Summary of the International Glossary Underwriting Offer Agreement Restrictions NEXTDC © Copyright 2023 | 2023 Regional Expansion and Entitlement Offer NOT
Slide 6: Summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES SUMMARY NEXTDC © Copyright 2023 | 2023 Regional Expansion and Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 6
Slide 7: Summary
SUMMARY NEXTDC is today launching a fully underwritten ~A$618 million pro-rata accelerated non-renounceable entitlement offer (“Entitlement Offer”) ▪ 1 for 8 Entitlement Offer ▪ A$10.80 per New Share (“Offer Price”) − 7.5% discount to the TERP1 of A$11.67 Net proceeds of the Entitlement Offer will p
Slide 8: NEXTDC Investment Highlights
NEXTDC INVESTMENT HIGHLIGHTS Compelling industry fundamentals Proven business model and Recurring revenue model with underpin significant long-term substantial experience delivering exposure to long-term contracts growth for NEXTDC and operating greenfield data centre projects in Australia ▪ NEXTDC
Slide 9: NEXTDC Investment Highlights (cont.)
NEXTDC INVESTMENT HIGHLIGHTS (CONT.) Strong track record in delivering Highly disciplined approach to Robust balance sheet, supported by growth in contracted utilisation, capital investment substantial liquidity to fund future revenue, and EBITDA expansion and growth ▪ Investment in data centre deve
Slide 10: Regional Expansion
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES REGIONAL EXPANSION NEXTDC © Copyright 2023 | 2023 Regional Expansion and Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 10
Slide 11: Expanding Regional Data Centre Presence
EXPANDING REGIONAL DATA CENTRE PRESENCE • With a rapidly growing portfolio of data centres and development projects across the APAC region, our continued expansion reflects our commitment to meeting the growing demand for high-quality, reliable, and secure data centre services across the region • NE
Slide 12: KL1 Kuala Lumpur
Artist’s impression only KL1 KUALA LUMPUR TECHNICAL SPECIFICATIONS Land area ~42,000sqm Total target IT capacity ~18,250sqm Total Power Planned 65MW 1 Target PUE 1.35 Design & construction UI Tier IV Design and Construct standard UI Tier IV Constructed Facility UI Tier IV Gold for Operational Sustai
Slide 13: AK1 Auckland
Artist’s impression only AK1 AUCKLAND TECHNICAL SPECIFICATIONS Land area ~2,900sqm Total target IT capacity ~3,000sqm Total Power Planned 10MW+1,2 Target PUE 1.35 Design & construction UI Tier IV Design and Construct standard UI Tier IV Constructed Facility UI Tier IV Gold for Operational Sustainabi
Slide 14: Sydney Market Update
SYDNEY MARKET UPDATE Step change in contracted utilisation requires an acceleration of S3 fit out ▪ NEXTDC announced significant contract wins in April, increasing the Company’s CONTRACTED UTILISATION VS BUILT CAPACITY (NSW/ACT) contracted utilisation by 35.9MW (43%) to 120MW since 31 December 2022
Slide 15: Entitlement Offer Details
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ENTITLEMENT OFFER DETAILS NEXTDC © Copyright 2022 NEXTDC © Copyright 2023 | 2023 Regional Expansion and Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 15
Slide 16: Use of Proceeds
USE OF PROCEEDS Sources A$m ▪ Net proceeds from the Entitlement Offer will be applied to the funding of new incremental growth initiatives including proposed new data Entitlement Offer 618 centre developments of KL1 and AK1, and accelerated data hall fit out at S3 Total Sources of Funds 618 ▪ Constr
Slide 17: Pro-forma Balance Sheet
PRO-FORMA BALANCE SHEET Pro-forma Adjustments Balance Sheet Summary (A$m) 31 Dec 2022 Term Debt1 Entitlement 31 Dec 2022 ▪ On a pro-forma basis, NEXTDC has a significant (Statutory) Offer2 (Pro-forma) tangible asset backing of ~A$3.8 billion, with Cash and cash equivalents 364 91 604 1,059 PP&E of ~
Slide 18: Entitlement Offer Summary
ENTITLEMENT OFFER SUMMARY ▪ 1 for 8 pro-rata accelerated non-renounceable entitlement offer to raise ~A$618 million Offer Size & Structure ▪ ~57.2 million New Shares to be issued under the Entitlement Offer, equivalent to 12.5% of Existing Shares on issue ▪ Offer Price of A$10.80 per New Share repre
Slide 19: Entitlement Offer Timetable
ENTITLEMENT OFFER TIMETABLE Event Date1 Trading halt and announcement of Entitlement Offer Thursday, 11 May 2023 Announcement of results of Institutional Entitlement Offer Monday, 15 May 2023 Trading halt lifted and NEXTDC shares recommence trading Monday, 15 May 2023 Entitlement Offer Record Date 7
Slide 20: Appendix A: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES APPENDIX A KEY RISKS NEXTDC © Copyright 2023 | 2023 Regional Expansion and Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 20
Slide 21: Key Risks
KEY RISKS This section discusses some of the key risks associated with an investment in NEXTDC, together with risks relating to participation in the Entitlement Offer, which may affect the value and performance of NEXTDC shares. The below risks should not be taken as a complete list of the risks ass
Slide 22: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC is involved in the development of data centres. Generally, development projects, including KL1 and AK1, have a number of key risks including: (i) the risk that suitable sites or required planning consents, access to power and regulatory approvals are not obtained or, if obta
Slide 23: Key Risks (cont.)
KEY RISKS (CONT.) One of the keys to the success of NEXTDC’s business is its ability to retain and grow existing customer relationships and develop new customer relationships. There is no guarantee that these relationships will continue or, if they do continue, that these relationships will be succe
Slide 24: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC depends on the talent and experience of its staff and employees. It is essential that appropriately skilled staff be available in sufficient numbers Loss of Key to support NEXTDC’s business. While NEXTDC has initiatives in place to mitigate the risk of its key staff leaving,
Slide 25: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC’s business involves the cloud hosting and storage of information, including confidential and proprietary data of organisations and personal information of individuals. Advances in technological capabilities and tools and methods used by hackers and cyber terrorists may resul
Slide 26: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC will continue to evaluate a range of growth driven initiatives in the future, which may include the acquisition of new data centre sites or business acquisitions or investments. There can be no assurances that NEXTDC will identify suitable future acquisition or investment op
Slide 27: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC may in the ordinary course of business become involved in litigation, arbitration and disputes, for example with its suppliers, clients or other contractual counterparties. Such disputes may relate to, but are not limited to, contractual disputes, indemnity claims, employmen
Slide 28: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC may, in the future, require additional debt or equity in order to fund growth strategies and/or to refinance its existing debt obligations. NEXTDC may be unable to access debt or equity funding on commercially acceptable terms, or at all in the future. Any drawdown under NEX
Slide 29: Key Risks (cont.)
KEY RISKS (CONT.) As inflation continues to remain elevated, this may result in unmitigated increases in the prices of key elements of NEXTDC’s supply chain, including Adverse Inflation critical capital equipment and/or labour costs. NEXTDC has a large development pipeline with material capital expe
Slide 30: Appendix B: Summary of the Underwriting Agreement
APPENDIX B SUMMARY OF THE UNDERWRITING AGREEMENT NEXTDC © Copyright 2023 | 2023 Regional Expansion and Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 30
Slide 31: Summary of Underwriting Agreement
SUMMARY OF UNDERWRITING AGREEMENT NEXTDC has entered into an underwriting agreement with the Joint Lead Managers pursuant to which the Joint Lead Managers have been appointed as joint lead managers, bookrunners and underwriters of this Entitlement Offer (“Underwriting Agreement”). The Underwriting A
Slide 32: Summary of Underwriting Agreement (cont.)
SUMMARY OF UNDERWRITING AGREEMENT (CONT.) ▪ NEXTDC or any of its directors or the Chief Executive Officer or Chief Financial Officer engages in any fraudulent conduct or activity whether or not in connection with the Entitlement Offer; ▪ a change occurs to the Chief Executive Officer or Chief Financ
Slide 33: Summary of Underwriting Agreement (cont.)
SUMMARY OF UNDERWRITING AGREEMENT (CONT.) ▪ any adverse change or disruption occurs to the existing financial markets, political or economic conditions of Australia, the United States, the United Kingdom or Hong Kong, or there is any change or development involving a prospective change in national o
Slide 34: Appendix C: International Offer Restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES APPENDIX C INTERNATIONAL OFFER RESTRICTIONS NEXTDC © Copyright 2023 | 2023 Regional Expansion and Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 34
Slide 35: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austral
Slide 36: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) Any financial information contained in this document has been prepared in accordance with Australian Accounting Standards and also comply with International Financial Reporting Standards and interpretations issued by the International Accounting Standards Boa
Slide 37: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsewhere that is directed at, or the contents of which are likely
Slide 38: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) Norway This document has not been approved by, or registered with, any Norwegian securities regulator under the Norwegian Securities Trading Act of 29 June 2007 no. 75. Accordingly, this document shall not be deemed to constitute an offer to the public in Nor
Slide 39: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) United Arab Emirates This document does not constitute a public offer of securities in the United Arab Emirates and the New Shares may not be offered or sold, directly or indirectly, to the public in the UAE. Neither this document nor the New Shares have been
Slide 40: Appendix D: Glossary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES APPENDIX D GLOSSARY NEXTDC © Copyright 2023 | 2023 Regional Expansion and Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 40
Slide 41: Glossary
GLOSSARY Application The arranging for payment of the relevant Application Monies through Bpay® in Entitlement Offer The Institutional Entitlement Offer and the Retail Entitlement Offer accordance with the instructions on the Entitlement and Acceptance Form or the Ineligible A Shareholder who is an
Slide 42: NEXTDC Investor Relations
NEXTDC INVESTOR RELATIONS investorrelations@nextdc.com 13 63 98 linkedin.com/company/nextdc twitter.com/nextdc facebook.com/datacentres youtube.com/user/nextdatacentre www.nextdc.com/blog NEXTDC © Copyright 2023 2022 | 2023 FY22 Regional Results Presentation Expansion and Entitlement Offer NOT FOR D
Slide 43: Not for Distribution or Release in the United States
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES