Sunevision Holdings Ltd. · HKEX:1686
Sunevision — H1 2021/22 Earnings Presentation
30 slides from Sunevision's earnings presentation, February 2022
Slide 1: 1H21/22 Interim Results Presentation
1H21/22 INTERIM RESULTS PRESENTATION (HKSE: 1686) February 2022
Slide 2: SUNeVision at a Glance
01 SUNeVison AT A GLANCE
Slide 3: SUNeVision at a Glance
SUNeVision AT A GLANCE Hong Kong based largest data centre service provider with differentiating capabilities Most Carrier - Cloud Largest Connected Neutral Gateways Scalable Trusted ~25% 9 200+ All 5+3 21+ market share1 subsea cable carriers, ISPs major cloud strategic years’ of PoPs3 & other servi
Slide 4: Proven Track Record of Growth Over 21 Years
PROVEN TRACK RECORD OF GROWTH OVER 21 YEARS 1 2 3 4 21+ years track record of Consistently maintained Over HK$18.1b of total Strong revenue CAGR of developing data centre portfolio industry leading EBITDA margins capital invested over the years1 13% from FY2017–2021 and building strong clientele of
Slide 5: 1H21/22 Highlights
02 1H21/22 HIGHLIGHTS
Slide 6: 1H21/22 Highlights
1H21/22 HIGHLIGHTS SUNeVision is pleased to announce another strong interim results for 1H2021/22 ✓ Revenue increased 8% YoY to HK$995mn ✓ Revenue from data centre and IT facilities increased 9% YoY to HK$935mn Financial Results ✓ EBITDA grew 12% YoY to HK$728mn (excluding subsidies1) ✓ NPAT increas
Slide 7: Sustainable Growth from Strong Pipeline
SUSTAINABLE GROWTH FROM STRONG PIPELINE Exciting growth opportunity as MEGA Fanling, MEGA Gateway and MEGA IDC - Phase 1 are getting ready for service within the next 3-18 months, enabling SUNeVision to continue to deliver healthy and sustainable growth Capacity Expansion Plan 4x in Total IT Power C
Slide 8: Project Update (Construction Progress)
PROJECT UPDATE (CONSTRUCTION PROGRESS) Despite the ongoing challenges with global supply chains and logistics, construction of the new data centre projects has progressed to the final stages MEGA Fanling MEGA Gateway MEGA IDC ▪ Opening date: 1H-CY2022 ▪ Opening date: 2H-CY2022 ▪ Opening date: 1H-CY2
Slide 9: Solid Pre-Launch Commitments and Pipelines
SOLID PRE-LAUNCH COMMITMENTS AND PIPELINES MEGA Gateway already 35% pre-committed with 6 months until opening date, and MEGA IDC has received firm interest from multiple cloud service providers despite a year before operational MEGA Fanling MEGA Gateway MEGA IDC ▪ Pre-committed single tenant on- ▪ 3
Slide 10: Strong Foundation of Connectivity Platform Well-Positioned for Data Traffic Boom
STRONG FOUNDATION OF CONNECTIVITY PLATFORM WELL-POSITIONED FOR DATA TRAFFIC BOOM The recent launch of our carrier-neutral cable landing station in Chung Hom Kok further strengthens MEGA Campus’s leading connectivity, well positioned to capture the demand from the delayed subsea cables expecting to m
Slide 11: 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
Slide 12: 1H21/22 Financial Results
03 1H21/22 FINANCIAL RESULTS
Slide 13: Solid Revenue Growth Driven by Capacity Expansion
SOLID REVENUE GROWTH DRIVEN BY CAPACITY EXPANSION Healthy and sustainable revenue growth on the back of increased IT capacity as well as continuing growth from hyperscale and cloud customers Net Revenue1 Total IT Capacity2: ~70MW (HK$mn) IT Occupancy3: ~87% 996 951 923 61 895 61 832 819 67 91 729 93
Slide 14: Healthy EBITDA Growth with Margin Expansion
HEALTHY EBITDA GROWTH WITH MARGIN EXPANSION Excluding impact from subsidies, EBITDA increased 12% YoY to HK$728mn and NPAT increased 10% YoY to HK$410mn. Margin expansion as a result of continued increase in economies of scale and improved operating leverage EBITDA and Margin1,2 NPAT2,3 (HK$mn) (HK$
Slide 15: 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 / EBITDA1,2 Debt structure as of 31 December 2021 (HK$mn) Shareholder's loan 33% Total debt: HK$11.4bn 7.5x 7.3x 7.5x 7.7x 7.6x HK$3.8bn 4.
Slide 16: Corporate Highlights
04 CORPORATE HIGHLIGHTS
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 Largest IDC player with 1.4mn sq ft GFA (~25% market share1) and best-in-class assets across HK SUNeVision's Data Centre Portfolio SUNeVision’s Pipeline DCs Location GFA (sq ft) Highlights Revitalisation ✓ Tier 3+
Slide 22: Scalable Self-Owned Data Centre Portfolio in Strategic Locations
2 LARGEST IDC PLAYER WITH BEST-IN-CLASS ASSETS IN STRATEGIC LOCATIONS ACROSS HONG KONG Scalable and self owned data centre portfolio with strategic locations in Hong Kong SUNeVision’s IDCs are Developed in Strategic Locations in HK Strategic Focus in HK Scale and cluster effect Gateway to China • In
Slide 23: Diversified, Quality and Sticky Client Base
3 DIVERSIFIED, QUALITY AND STICKY CLIENT BASE Diversified clientele with robust and accelerating demand, with top 5 customers accounted for ~47% of data centre revenue Top DC Ecosystems in HK* Clients’ Demand SUNeVision’s Solution (% of Market Ecosystem) • Demand from hyperscale / MEGA Plus cloud pl
Slide 24: Case Study: Collaboration with Tencent Cloud
3 CASE STUDY: COLLABORATION WITH TENCENT CLOUD Strategic Collaboration with Tencent Cloud In August 2021, SUNeVision announced a strategic collaboration “We are excited to strategically collaborate with Tencent Cloud to with Tencent Cloud to further expand both parties’ presence and accelerate digit
Slide 25: Dual Core Strategy to Further Accelerate Growth
4 DUAL CORE STRATEGY TO FURTHER ACCELERATE GROWTH SUNeVision to quadruple its total IT capacity to 280MW+ based on its current pipeline projects Construction of New Data Centres Revitalising Existing Facilities 1 1 MEGA Gateway MEGA-i (TWTL 428) • Combined with JUMBO to strengthen Tsuen Wan • +40% p
Slide 26: Strong Future Growth Pipeline
4 STRONG FUTURE GROWTH PIPELINE 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) ✓ Limited land suppl
Slide 27: Strong Future Growth Pipeline
4 STRONG FUTURE GROWTH PIPELINE Exciting growth opportunity as MEGA Gateway (TWTL 428), MEGA IDC – Phase 1 (TKOTL 131) and MEGA Fanling are getting ready for service within the next 3-18 months, coupling with continual power upgrades and revitalisation projects Capacity Expansion Plan 4x in Total IT
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 built in Hong Kong Industry Veteran Management Key Leadership Raymond Tong Martin Chan Fiona Lau Andrew Wong A
Slide 29: Thank You
THANK YOU oxahed
Slide 30: 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
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