Slide 1: FY23 Full Year Results Presentation
FY23 Full Year Results Presentation 25 August 2023
Slide 2: We acknowledge
We acknowledge Aussie Broadband acknowledges Aboriginal and Torres Strait Islanders as the First Australians, and their role as the original communicators, connectors, and carers of the land and waters across Australia. We pay our respects to Elders past and present. We commit to working respectfull
Slide 3: Important notice and disclaimer
Important notice and disclaimer This presentation is for information purposes only and it is not financial product or Investors should also be aware that certain financial data included in this presentation investment advice. The presentation is not intended to be comprehensive or provide including
Slide 4: The game worth playing
The game worth playing Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 5: The game worth playing
The game worth playing Continuing to build scale across our segments In FY23 Aussie Broadband: Built a strong and resilient network while delivering quality communications services and exceptional customer experiences for Residential and all other segments Accelerated growth across our Business, Ent
Slide 6: FY23 highlights
FY23 highlights Delivered strong growth across all key metrics vs pcp1 $788.0m 35.4% $89.6m $116.7m Revenue Gross Margin EBITDA Op Cash Flow2 Up 23.1% Up 2.1 ppt Up 52.1% Up 147.2% nbn® Market Broadband Share3 Connections 7.6% 691k Up 1.1 ppt Up 18.2% 1. Prior year comparable (pcp) calculated based
Slide 7: Financial Performance & Highlights
Financial Performance & Highlights 7
Slide 8: Profit & Loss
Profit & Loss FY22 FY23 Change % $m $m Revenue 640.0 788.0 23.1% 35.4% Gross Margin, 2.1 ppt Network & Hardware expenses (426.9) (509.4) 19.3% improvement Gross Profit 213.1 278.6 30.7% Gross Margin % 33.3% 35.4% 2.1 ppt Employee Expenses (100.1) (123.7) 23.6% 52.1% increase in EBITDA Marketing Expe
Slide 9: FY23 Revenue Drivers
FY23 Revenue Drivers Delivering growth across all segments FY23 Revenue Drivers 800 38.3 788.0 Strong growth in Residential and Wholesale segments 6.4 750 6.1 96.8 Accelerating Business 700 and E&G segments from a smaller base $ in Millions 650 640.0 600 550 500 FY22 Total Residential Business E&G W
Slide 10: FY23 EBITDA drivers
FY23 EBITDA drivers Scale and network investments underpinning EBITDA growth FY23 EBITDA Bridge 120 Strong growth across all segments and network 100 19.8 5.3 investment delivered (5.3) (1.0) 89.6 increase of 52.1% EBITDA (4.9) 80 16.8 $ in Millions 60 58.9 40 20 0 FY22 EBITDA Growth Network Synergi
Slide 11: Cash flow and leverage
Cash flow and leverage Strong cash generation Operating Cash Flow $116.7m – up $69.5m Strong cash flow position assisted by a one-off change to NBN billing timing Cash Conversion Ratio 130.2% - up 50.1 ppt Net Interest $7.1m – up $5.5m Working Capital Movement $121.9m – up $61.8m Indicative Net Leve
Slide 12: Capex
Capex Disciplined investment in Capex FY23 Capex Profile Summary Performance FY23 50 0.4 Lower than expected ($m) 45 Capex investment in 9.7 Replacement (Network & 9.7 40 FY23 due to timing of Software) 35 5.8 customer fibre builds Fibre Backbone 9.4 30 3.6 $ Millions Growth 30.0 25 6.1 Fibre invest
Slide 13: Segment Performance
segment Performance Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 14: Residential Segment
Residential Segment Improving margins through network synergies and more profitable services Summary FY22 FY23 Change Residential Broadband Connections Performance 550,000 ($m) Network Revenue 415.0 511.8 23.3% investments COGS (302.2) (352.0) 16.5% 500,000 27,551 delivering improved Gross Margin 11
Slide 15: Business Segment
Business Segment Consistent growth in a high margin segment Business Broadband Connections Summary FY22 FY23 Change 50,000 Performance ($m) 48,000 Consistent growth Revenue 83.3 89.4 7.3% momentum 46,000 COGS (44.6) (47.3) 6.8% 4,270 throughout FY23 Gross Margin 38.7 42.1 8.8% 44,000 Gross Margin %
Slide 16: Enterprise & Government Segment
Enterprise & Government Segment Building a pipeline for future growth Summary FY22 FY23 Change FY23 – E&G New Customer Highlights Performance ($m) Recurring 68.8 74.9 8.9% Revenue New customer growth reflecting investment Non-Recurring 10.8 11.5 6.5% in sales Total Revenue 79.6 86.4 8.5% COGS (37.9)
Slide 17: Wholesale Segment
Wholesale Segment Strong white-label and wholesale voice momentum Summary FY22 FY23 Change Wholesale Broadband Connections Performance ($m) 130,000 White label Revenue 62.1 100.4 61.7% 110,000 delivering COGS (42.2) (68.0) 61.1% 90,000 23,021 connections and Gross Margin 19.9 32.4 62.3% 16,014 reven
Slide 18: Other highlights
Other highlights Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 19: Successful integration of Over the Wire
Successful integration of Over the Wire ü FY23 exit run rate synergy of $6.0m achieved, driven by quick network and Aussie Broadband voice wins, removal of operational duplication and other efficiency gains transformed into multi- segmented technology ü Team integration between Aussie Broadband and
Slide 20: Being good ... is good for business
Being good ... is good for business Aussie Broadband has achieved B Corp certification Being good to people and planet - the actual Aussie Way • Aussie Broadband is largest telco in Australia to be an accredited B Corporation. • Our impact score of 96.3 places us in the Top 6 B Corps in Australia fo
Slide 21: Aussie's approach to ESG
Aussie’s approach to ESG Making progress on our ESG Framework Environmental Social Governance We are committed to having a positive Carbon footprint Addressing social Rigorous governance impact on our society • Carbon neutral for scope 1 challenges • Aligned constitution's purpose and 2 emissions •
Slide 22: Expanding our reach
Expanding our reach Investing in our infrastructure capability Aussie Fibre Tier 1 Voice Network Cloud Platform 1,426km 144.1m 10,000+ Tbs Aussie Fibre rolled out Average Voice Minutes Per Month Cloud storage under management About Aussie’s Fibre Network: About Aussie’s Tier 1 Voice Network: About A
Slide 23: Australia's Most Trusted Telco
Australia’s Most Trusted Telco Unique customer experience across all segments 23
Slide 24: FY24 Outlook & Guidance
FY24 Outlook & Guidance Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 25: FY24 Focus
FY24 Focus Building on momentum to further accelerate non-residential segments Further build momentum in Business and E&G through increased solution selling and leveraging the trust customers have with the retail brand to win in Enterprise Capture further voice market share to continue to scale our
Slide 26: FY24 Performance Upsides & Downsides
FY24 Performance Upsides & Downsides Upside opportunities for FY24 • Continued momentum across all market segments • Efficiency initiatives leading to cost control outcomes • Improved operating leverage • Greater than anticipated deal volumes in E&G Downside risks to FY24 • Potential for continued d
Slide 27: Positive outlook for FY24
Positive outlook for FY24 YTD trading • Aussie Broadband’s growth trajectory has continued into FY24 • Broadband services have increased to over 715k • Price competition has been increasing, especially in high-speed tiers • Pipeline and deals signed in E&G continues to grow Guidance • EBITDA range o
Slide 28: Appendices
Appendices h Aussie = Broadband THE ACTUAL AUSSIE WAY
Slide 29: Balance Sheet
Balance Sheet FY22 FY23 Change Cash and cash equivalents 47.7 75.1 57.4% Trade and other receivables 37.2 43.4 16.7% Plant and equipment Plant and equipment 64.1 91.8 43.2% assets grew 43.2% driven Right-of-use assets 44.3 56.5 27.5% by fibre investments Intangibles 416.4 398.1 (4.4)% Other assets 1
Slide 30: Cashflow
Cashflow FY22 FY23 Change $m $m Receipts from customers 701.7 866.6 23.5% Payments to suppliers & employees (647.6) (744.7) 15.0% Working capital Net Interest Payments (1.6) (7.1) 343.8% improvements driving cash flow increases Tax payments (5.3) 1.9 135.8% Operating cash flows 47.2 116.7 147.2% Pay
Slide 31: 1H FY23 Segment Results On Same Basis
1H FY23 Segment Results On Same Basis1 Revised segment Results xx Functional integration of 1H FY23 Residential Business E&G Wholesale ABB Total OTW driving finalisation Revenue 246.1m 43.2m 42.2m 47.4m 379.0m of segments COGS (170.7m) (23.0m) (32.4m) (20.7m) (246.8m) Gross Margin 75.4m 20.2m 15.1m
Slide 32: 1H FY23 Segment Connections On Same Basis
1H FY23 Segment Connections On Same Basis1 1H FY22 2H FY22 1H FY23 2H FY23 Further refinement of Residential 422,273 465,249 494,954 522,505 12.3% market segments Business 34,244 39,017 43,061 47,331 21.3% E&G 8,539 9,097 9,783 10,871 19.5% Future changes to Wholesale 36,344 71,430 87,444 110,465 54
Slide 33: Thank you
Thank you Aussie Broadband Limited Investors contact: Aline van Deventer – 0423 553 434 investors@team.aussiebroadband.com.au Authorised for release by the Aussie Broadband Board