Slide 1: FY2016 Half Year Results
For personal use only FY2016 HALF YEAR RESULTS 18 FEBRUARY 2016 NEXTDC LIMITED ACN 143 582 521
Slide 2: 1H16 highlights
1H16 highlights For personal use only CONTRACTED REVENUE1 EBITDA UTILISATION $42.1m $11.4m 22.8MW 51% 279% 59% on 1H15 on 1H15 since Dec-14 1. Total revenue from ordinary activities (including data centre services revenue as well as other revenue) NEXTDC 1H16 Results 2
Slide 3: 1H16 highlights (cont)
1H16 highlights (cont) For personal use only Revenue from ordinary activities up $14.1m (51%)1 to $42.1m Ongoing growth in Contracted utilisation up 8.5MW (59%)2 to 22.8MW revenue Interconnection up 1,645 (75%2) to 3,843, representing ~5% of recurring revenue3 EBITDA up $8.4m (279%)1 to $11.
Slide 4: Agenda
For personal use only Agenda 1H16 Financial results 1H16 Operational performance FY16 Outlook Appendices S1 Sydney data centre 4
Slide 5: Financial results
For personal use only FY16 Half Year Results Financial results P1 Perth data centre 5
Slide 6: 1H16 profit and loss summary
1H16 profit and loss summary For personal use only 1H16 1H15 Change Statutory financial results: ($m) ($m) ($m) Revenue from ordinary activities: Data centre services revenue 41.3 26.7 14.6 Data centre services Other revenue Total revenue from ordinary activities 0.8 42.1 1.2 28.0 (0.4) 14.1 REVENUE
Slide 7: 1H16 profit and loss summary (cont)
1H16 profit and loss summary (cont) For personal use only 1H16 1H15 Change Note ($m) ($m) ($m) Non-statutory financial highlights for the year include: 1 Operating performance EBITDA 2 11.4 3.0 8.4 $8.4m improvement in EBITDA vs 1H15 EBIT 3.8 (4.0) 7.8 Direct costs (predominately power) rose sig
Slide 8: Substantial liquidity
Substantial liquidity For personal use only 31 December 2015 30 June 2015 ($m) ($m) Cash flow profile Cash and term deposits 225.3 52.9 $205.7m $39.2m Property, plant, equipment 253.4 221.2 Net assets 331.3 214.9 $225.3m $5.9m Financing $52.9m Positive operating cash flow of $5.9m achieved in 1H16
Slide 9: Operational performance
For personal use only FY16 Half Year Results Operational performance 9
Slide 10: Strong sales momentum
Strong sales momentum 1H16 data centre services revenue of $41.3m 1 1H16 EBITDA of $11.4m For personal use only Reflects 55% growth on 1H15 Reflects 279% growth on 1H15 Recurring revenue represented 85% of total 1H16 revenue Substantial headroom for earnings growth Recurring and project reve
Slide 11: Strong growth in sales metrics
Strong growth in sales metrics For personal use only Annualised unweighted Customers2 Interconnection pipeline ($m)1 (number of cross connects) 3,843 566 203 198 478 172 2,893 375 18% 51% 75% 2,198 Dec 14 Jun 15 Dec 15 Dec 14 Jun 15 Dec 15 Dec 14 Jun 15 Dec 15 1. 30 June 2015 figure excludes Federal
Slide 12: Strong growth in revenue per unit metrics
Strong growth in revenue per unit metrics Annualised revenue per MW ($m)1 Demonstrates strong growth in revenue per MW For personal use only since the billing commencement of Leading 4.49 4.45 Corporation in 2H14 4.26 Revenue derived from larger ecosystem-enhancing 3.90 deals tends to increase o
Slide 13: Strong growth in earnings metrics
Strong growth in earnings metrics EBITDAR / Data Centre Services Revenue1,2 For personal use only 47% Highlights the rapid growth in the company’s 40% 40% operating performance Is a property-agnostic measure of EBITDA margin Demonstrates the operating leverage achievable by 9% owning the land
Slide 14: Diversified recurring revenue model
Diversified recurring revenue model Customer by industry1 Utilisation by density1,2 For personal use only 5% 5% Enterprise More than 6kW 6% Cloud 6kW 18% 16% 29% Connectivity 5kW System Integrators 4kW 13% Government 3kW Digital Media 26% 2kW or less 31% 19% 26% Financial Services 3% 9% Cloud, conne
Slide 15: Utilisation
Utilisation Installed capacity vs contracted utilisation Billing vs contracted utilisation For personal use only 1.6MW available for sale at 31 December 2015 Contracted utilisation up 8.5MW (59%) to 22.8MW since 31 December 2014 Project works underway at M1, S1 and C1 to bring on additional ca
Slide 16: Facilities capacity and utilisation
Facilities capacity and utilisation As at 31 December 2015 M1 Melbourne 25 Contracted utilisation Final data hall (DH6) due for completion in February 2016; For personal use only Project Plus capacity high density customer requirements make use of Project Future build Plus capacity across halls Bu
Slide 17: FY16 new developments: national footprint
FY16 NEW DEVELOPMENTS B2 M2 For personal use only +6MW +25MW NATIONAL FOOTPRINT NEXTDC 1H16 Results 73MW 17
Slide 18: Outlook
For personal use only FY16 Half Year Results Outlook 18
Slide 19: FY16E Outlook
FY16E Outlook Revenue trending towards top end of $85m to $90m range (up 40% to 48% on FY15) For personal use only 2H16E revenues underpinned by the expected commencement of Leading Corporation deployment (4MW contract announced on 29 June 2015 and 2MW contract announced on 25 January 2016) as wel
Slide 20: Appendices
For personal use only FY16 Half Year Results Appendices 20
Slide 21: Industry overview
For personal use only FY16 Half Year Results Industry overview 21
Slide 22: The rise of the on-demand economy
The rise of the on-demand economy “Services delivered through the cloud will foster an economy based on delivery For personal use only and consumption of everything from storage to computation to video…” Chris Howard, research VP at Gartner 6bn Facebook pages 33% of internet users 50,000 new Uber 1b
Slide 23: Cloud answers challenge of digital economy
Cloud answers challenge of digital economy “…organisations across By 2017 By 2018 For personal use only the industries will shift steadily toward cloud-first >50% 65% IT budgets spent Global 2000 strategies to enable digital on mobile enterprise CEOs transformation.” computing, social with digital E
Slide 24: Colocation data centres are hubs for cloud access
Colocation data centres are hubs for cloud access “The new data centre will enable By 2019 By 2016 For personal use only internal customers to consume IT as a service, host critical applications and data, and augment capacity by 86% Workloads processed >50% Australian CIOs adopting using an external
Slide 25: Complex hybrid environments driving converged infrastructure
Complex hybrid environments driving converged infrastructure “Virtualisation, service orientation, and the internet have converged For personal use only to sponsor a phenomenon that enables individuals and businesses to choose how they’ll acquire or deliver IT services, with reduced emphasis on the
Slide 26: Business strategy
For personal use only FY16 Half Year Results Business strategy 26
Slide 27: Vision and mission
For personal use only VISION Our vision is to help enterprises harness the digital age, improving our society through the advancement of technology MISSION Our mission is to be the leading customer- centric data centre services company, delivering solutions that power, secure and connect enterprise
Slide 28: NEXTDC is where the cloud lives
NEXTDC is where the cloud lives® For personal use only Consumption economics is a powerful driver of hybrid cloud and colocation. NEXTDC customers enjoy a wide choice of public, private and hybrid cloud solutions through our Cloud Centre partner community: the largest carrier, vendor and integrator
Slide 29: Channel-first sales strategy
Channel-first sales strategy For personal use only Australia’s largest independent network of carriers, and cloud and IT service providers Partners tailor solutions with NEXTDC data centre services NEXTDC 1H16 Results 29
Slide 30: Cloud Centre
Cloud Centre NEXTDC data centres are a marketplace for the digital economy For personal use only NEXTDC is home to many enterprises, government organisations, and some of the world’s largest cloud computing providers. Our ecosystem value grows through interconnectedness. The data centre is the heart
Slide 31: Data centre services life cycle and product portfolio
Data centre services life cycle Product & services portfolio For personal use only Data Centre-as-a-Service • Hyper-scale • Full, half and quarter racks • Multi-tenant rack ready • Private suites Data Centre-as-a-Service • Micro data centre • Containerised data centre • Modular data centre DCIM-as-a
Slide 32: Certifications & Industry awards
Certifications & Industry awards For personal use only NEXTDC 1H16 Results 32
Slide 33: Customer testimonials
For personal use only FY16 Half Year Results Customer testimonials 33
Slide 34: Stefan Jansen, Amazon Web Services testimonial
For personal use only Stefan Jansen Australia and New Zealand Head of Channels and Alliances, Amazon Web Services (AWS) “Our customers are using the AWS Cloud to drive agility and innovation in Australia and beyond. NEXTDC is playing a key role in supporting customer success by expanding AWS Direct
Slide 35: Vik Sharma, Balmain testimonial
For personal use only Vik Sharma Head of Information Technology, Balmain “The decision we had to make was clear when we considered the cost of implementing a data centre from scratch as opposed to using existing, ready-to- move facilities such as NEXTDC’s.” Australia’s leading independent Data-Centr
Slide 36: Mike Riad, Telstra testimonial
For personal use only Mike Riad Director Cloud Services, Global Products and Solutions, Telstra “We value the relationship we have with NEXTDC and the importance it brings in serving our customers as part of our multi-cloud offering." Australia’s leading independent Data-Centre-as-a-Service provider
Slide 37: Nick Brant, BDO testimonial
For personal use only Nick Brant CIO, BDO “NEXTDC is perfect in the business it does: rock-solid, safe, secure, bullet-proof data centres and facility services, at a level we could not compete with for the value they deliver. It lets me focus on providing the information and business support systems
Slide 38: Case studies
For personal use only FY16 Half Year Results Case studies 38
Slide 39: Case study – B1 Brisbane
Case study – B1 Brisbane 1,2 Billing utilisation Highlights For personal use only Facility EBITDA ($m) Facility EBITDA NEXTDC’s first facility, 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 6.0 100% commenced operations 5.5 90% in October 2011 5.0 80% 4.5 Breakeven reached 4.0 70% after 9 months
Slide 40: Case study – M1 Melbourne
Case study – M1 Melbourne 1 Billing utilisation For personal use only Facility EBITDA ($m) Facility EBITDA 2Q13 2H13 1H14 2H14 1H15 2H15 1H16 14.0 60% 12.0 50% 10.0 40% 8.0 6.0 30% 4.0 Highlights 20% 2.0 NEXTDC’s second facility, commenced operations in September 10% 0.0 2012 -2.0 0% Break-even
Slide 41: Case study – S1 Sydney
Case study – S1 Sydney 1 Billing utilisation For personal use only Facility EBITDA ($m) Facility EBITDA 2Q14 2H14 1H15 2H15 1H16 8.0 60% 7.0 50% 6.0 5.0 40% 4.0 30% 3.0 2.0 20% Highlights 1.0 10% 0.0 NEXTDC’s fourth facility commenced operations in September 2013 -1.0 0% Breakeven reached after
Slide 42: Thank you
For personal use only Thank you Register for Investor Updates at www.nextdc.com/our-company/investor-centre 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