Sunevision Holdings Ltd. · HKEX:1686
Sunevision — H1 2022/23 Earnings Presentation
29 slides from Sunevision's earnings presentation, February 2023
Slide 1: 1H22/23 Interim Results Presentation
1H22/23 INTERIM RESULTS PRESENTATION (HKSE: 1686) February 2023
Slide 2: Disclaimer
DISCLAIMER The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, recommendation or suggestion by SUNeVision Holdings Limited
Slide 3: SUNeVision at a Glance
SUNeVision AT A GLANCE The largest Hong Kong based data centre service provider with differentiating capabilities Largest Scalable Carrier - Neutral 6 Existing Data Centres + 2 Pipeline Projects + 2 Cable Landing Stations 300+ ~26% carriers, ISPs & market share¹ Launched Upcoming Launched Upcoming o
Slide 4: Proven Track Record of Growth Over 22 Years
PROVEN TRACK RECORD OF GROWTH OVER 22 YEARS 1 2 3 4 22+ years track record of Consistently maintained Over HK$20.2b of total Strong revenue CAGR of developing data centre portfolio industry leading EBITDA margins capital invested over the years1 13% from FY2017–2022 and building strong clientele of
Slide 5: Advancing SUNeVision to Next Chapter of Sustainable Growth with Expanded Data Centre Portfolio
ADVANCING SUNEVISION TO NEXT CHAPTER OF SUSTAINABLE GROWTH WITH AN EXPANDED DATA CENTRE PORTFOLIO MEGA Campus Cable Landing Stations New Infrastructures Gateway Fanling HKIS-1 HKIS-2 MEGA MEGA MEGA IDC Location Fanling Tsuen Wan Tseung Kwan O Chung Hom Kok Chung Hom Kok GFA 129k sq. ft. 201k sq. ft.
Slide 6: Diversified Customer Franchise with Both Hyperscale and Retail Customers
DIVERSIFIED CUSTOMER FRANCHISE WITH BOTH HYPERSCALE AND RETAIL CUSTOMERS ✓ Trusted By 300+ Providers of Telco, Cloud, ISP, CDN, OTT, etc. Leading ✓ Direct Access to Major Global Major Cloud Service Providers HYPERSCALERS CLOUD Service Providers Top 5 customers accounted for ~49% of data centre reven
Slide 7: 1H22/23 Performance Highlights
1H22/23 PERFORMANCE HIGHLIGHTS NEXT CHAPTER OF SUSTAINABLE GROWTH
Slide 8: 1H22/23 Updates
1H22/23 UPDATES SUNeVision is pleased to announce another strong interim results for 1H22/23 amid global uncertainties ✓ Revenue increased 11% YoY to HK$1,108mn Strong Financial ✓ Revenue from data centre and IT facilities increased 9% YoY to HK$1,019mn Performance1 ✓ EBITDA grew 11% YoY to HK$805mn
Slide 9: Expansion Plan Progressing as Scheduled
EXPANSION PLAN PROGRESSING AS SCHEDULED Construction of MEGA Gateway has been completed with customers starting to move in; Target opening of MEGA IDC (Phase 1) by 4Q2023 Capacity Expansion Plan (MW) ~ 4x in Total IT Power Capacity 130+ 280+ Ready for Service Imminently 50 20 100 10 80 70 2H2021 MEG
Slide 10: Launch of MEGA Gateway
LAUNCH OF MEGA GATEWAY Construction of MEGA Gateway completed. Customers have started their fit-outs and have begun to move in. Operations will commence shortly. Strong demand from connectivity customers with 65% pre-commitment 10
Slide 11: MEGA Gateway Highlights
MEGA GATEWAY HIGHLIGHTS MEGA Gateway is a green-field data centre development meeting current and future customers needs of high- tier, high power density and strong connectivity ▪ Purpose-built high-grade superstructure building en bloc for data centre use, providing superb security and resilience
Slide 12: MEGA IDC Progressing Well
MEGA IDC PROGRESSING WELL MEGA IDC : Data Centre of Tomorrow ▪ Major updates − Project to be built by 2 phases. Phase 1 (500,000 square feet GFA and >50MW IT load) opening up in 4Q-CY23 − Phase 1 superstructure well advanced with construction up to 9th floor, expected topping off in April 2023 − Con
Slide 13: Asia Direct Cable (ADC) Lands at HKIS-1
ASIA DIRECT CABLE (ADC) LANDS AT HKIS-1 The ADC has landed its Hong Kong segment at SUNeVision’s HKIS-1, with a new City Point-of-Presence (PoP) at MEGA Plus. This will enable substantially more connectivity between Hong Kong and other countries ▪ ADC is the first international cable to land in Hong
Slide 14: Final Conclusion of Judicial Review
FINAL CONCLUSION OF JUDICIAL REVIEW A fair and healthy environment is beneficial to every participant in innovation and technology industry Sep 2018 • SUNeVision applied for judicial review to challenge HKSTP’s decision not to take immediate steps to rectify the failure / refusal to take reasonable
Slide 15: 1H22/23 Financial Review
1H22/23 FINANCIAL REVIEW
Slide 16: Stable Revenue Growth Driven by Demand from Customers
STABLE REVENUE GROWTH DRIVEN BY DEMAND FROM CUSTOMERS Strong revenue growth of 11% YoY to HK$1,108mn reflecting strong demand for high-quality data centre space from both hyperscale and connectivity customers Net Revenue¹ (HK$mn) Total IT Capacity²: ~80MW IT Occupancy³: ~78% 1,091 1,108 995 85 89 92
Slide 17: Healthy EBITDA Growth and Margins
HEALTHY EBITDA GROWTH AND MARGINS 3,500 EBITDA increased 11% YoY to HK$805mn and NPAT increased 6% YoY to HK$433mn. EBITDA margins 100% 3,000 remained strong at 73% with NPAT margin decreasing slightly due to increased finance cost 1,800 1 EBITDA and EBITDA Margin NPAT1 0 1,600 (HK$mn) (HK$mn) 80% 4
Slide 18: Strong Funding Platform with Competitive Financing Cost
STRONG FUNDING PLATFORM WITH COMPETITIVE FINANCING COST Access to competitively priced bank financing and strong financial support by major shareholder Net debt / EBITDA1 Debt structure as of 31 December 2022 7.9X Shareholder's loan Total debt: HK$13.0bn 7.3X 7.5X 7.7X 7.6X 29% HK$3.8bn 4.6X 5.1X 5.
Slide 19: Thank You
THANK YOU oxahed
Slide 20: Appendix
APPENDIX
Slide 21: Corporate Highlights
Sizable and growing addressable market 1 driven by secular tailwinds Largest IDC player with best-in-class assets 2 in strategic locations across Hong Kong Diversified, quality and sticky 3 client base CORPORATE HIGHLIGHTS 4 Strong future growth pipeline SUNeVision is a leading data centre service p
Slide 22: Sizable and Growing Addressable Market Driven by Secular Tailwinds
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY SECULAR TAILWINDS Unprecedented demand for data and traffic continues to drive demand for DC services. HK is a global DC hub in the fastest growing region for DC Demand for data and traffic HK public cloud market1 HK data centre market2 Cloud Softwa
Slide 23: Hong Kong Global Connectivity Hub
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY SECULAR TAILWINDS Hong Kong – global connectivity hub with subsea cables concentrated around the city Hong Kong as Key Hub for Data Traffic Growth Japan ✓ Geographical location, strong subsea cable China Korea Tokyo connections & well-established co
Slide 24: Reliable Power Supply and Supportive Government Policies
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY SECULAR TAILWINDS Reliable and abundant power supply and supportive government policies further serve as HK’s competitive advantages for data centre services Reliable and Abundant Power Supply1 Supportive Government Policies2 • HK has 2 power compan
Slide 25: Largest IDC Player with Best-in-Class Assets in Strategic Locations
2 LARGEST IDC PLAYER WITH BEST-IN-CLASS ASSETS IN STRATEGIC LOCATIONS ACROSS HONG KONG Scalable data centre portfolio with strategic locations in Hong Kong SUNeVision’s IDCs and Cable Landing Station are Developed in Strategic Strategic Focus in HK Locations in HK Scale and cluster effect Gateway to
Slide 26: Diversified, Quality and Sticky Client Base
3 DIVERSIFIED, QUALITY AND STICKY CLIENT BASE Diversified clientele with robust and accelerating demand from both hyperscale and retail customers, with top 5 customers accounted for ~49% of data centre revenue Top DC Ecosystems in HK* Clients’ Demand SUNeVision’s Solution (% of Market Ecosystem) • D
Slide 27: Proven Dual Core Strategy for Future Growth
4 PROVEN DUAL CORE STRATEGY FOR FUTURE GROWTH Full Asset Ownership Model ✓ Provides Company with superior control in managing underlying properties – Decisions optimised based on business needs Asset Light Model – Long-term stability an important consideration MEGA-i for DC clients (Chai Wan) ✓ Limi
Slide 28: Industry Veteran Management and Strategic Shareholder Support
5 INDUSTRY VETERAN MANAGEMENT AND STRATEGIC SHAREHOLDER SUPPORT Veteran management and strong backing by strategic shareholder, enabling the fastest and most efficient high-tier data centre build in Hong Kong Industry Veteran Management Key Leadership Raymond Tong Martin Chan Helen Lo Elisha Tong Al
Slide 29: ESG and Sustainability Initiatives
ESG AND SUSTAINABILITY INITIATIVES SUNeVision believes sustainability is key to a successful business, implementing sustainable initiatives from environmental-friendly DC designs to community investment to structured employment and labor practices that attract top talents Environment Awards ✓ Ambiti
SUNeVision Holdings — H1 2022/23 Earnings Presentation on 6ix