Slide 1: 1H17 Half-Year Results
For personal use only 1H17 HALF-YEAR RESULTS 24 FEBRUARY 2017 NEXTDC LIMITED ACN 143 582 521
Slide 2: 1H17 Highlights
1H17 HIGHLIGHTS For personal use only REVENUE EBITDA UTILISATION $58.7m $23.9m 30MW +39% +110% +32% CUSTOMERS PARTNERS INTERCONNECTIONS 699 300+ 5,472 +23% 50+ NETWORKS +42% NEXTDC 1H17 Results 2
Slide 3: 1H17 highlights (cont)
1H17 highlights (cont) For personal use only Revenue from continuing operations up $16.6m1 (39%)1 to $58.7m Solid revenue Contracted utilisation up 7.2MW2 (32%)2 to 30.0MW growth Interconnection up 1,6292 (42%)2 to 5,472, representing 5.5% of recurring revenue EBITDA up $12.5m1 (110%)1 to $2
Slide 4: Agenda
Agenda For personal use only 1H17 Financial results 1H17 Business performance FY17E Outlook Appendices 4
Slide 5: Financial results
For personal use only FY17 Half-Year Results Financial results 5
Slide 6: 1H17 profit and loss summary
1H17 profit and loss summary 1H17 1H16 Change For personal use only Statutory financial results: Note ($m) ($m) ($m) Revenue from continuing operations: Data centre services revenue 56.0 41.3 14.7 Data centre services Other revenue 2.8 0.8 1.9 Total revenue from continuing operations 58.7 42.1 16.6
Slide 7: Strong asset base
Strong asset base For personal use only 31 December 2016 30 June 2016 ($m) ($m) Cash flow profile Cash and term deposits 276.5 191.4 $146.1m $86.4m Property, plant, equipment 365.9 302.7 Net assets 501.8 333.1 $276.5m $25.4m $191.4m Operating cash flow of $25.4m achieved in 1H17 Raised $150m of
Slide 8: Continued sales momentum drives revenue and EBITDA growth
Continued sales momentum drives revenue and EBITDA growth 110% EBITDA growth on 1H16 For personal use only 36% revenue growth on 1H16 Recurring and project revenue1 EBITDA3 $23.9m $56.0m Project revenue2 EBITDA Recurring revenue $48.0m $16.4m $41.3m $11.4m $31.9m $5.0m $26.7m $3.0m $18.9m $11.4m ($6
Slide 9: Revenue per unit metrics
Revenue per unit metrics Annualised revenue per square metre ($)1 For personal use only 8,837 8,472 Demonstrates ongoing growth 8,359 in revenue per square metre, 7,991 noting the deployment of large, 7,452 high density, ecosystem 7,205 enhancing deals over time 6,606 New facility developments d
Slide 10: Strong growth in earnings metrics
Strong growth in earnings metrics EBITDAR / Data Centre Services Revenue1,2 For personal use only 57% 51% EBITDAR margin is a 47% 40% 40% property-agnostic indicator of underlying profitability 9% Continuous improvement in margins reflect the benefit of (30%) operating leverage 1H14 2H14 1H15 2H
Slide 11: Business performance
For personal use only FY17 Half-Year Results Business performance 11
Slide 12: Strong growth in customers and connectivity
Strong growth in customers and connectivity For personal use only Customers 699 647 Strong growth in 566 interconnection drives cross connects per 478 customer up 15% to 7.8 at 375 31 December 2016 (from 302 6.8 at 31 December 2015) 202 130 Growth in cross connects 2H13 1H14 2H14 1H15 2H15 1H16
Slide 13: Diversified recurring revenue model
Diversified recurring revenue model Customer by industry1,2 Utilisation by density3 5% For personal use only 6% Enterprise More than 6kW 7% Cloud 4kW to 6kW Connectivity 25% 3kW or less 33% System Integrators 12% 42% Government Financial Services Digital Media 17% 20% 33% Cloud, connectivity and as-
Slide 14: Utilisation
Utilisation Installed capacity1 vs contracted utilisation Billing vs contracted utilisation For personal use only 87% of installed capacity was contracted at 31 December 2016 Contracted utilisation up 7.2MW (32%) to 30.0MW since 31 December 20154 Capacity at S1 is being upgraded from 14.0MW to
Slide 15: Facilities capacity and utilisation
Facilities capacity and utilisation As at 31 December 2016 M1 Melbourne Additional data hall space being fitted out to support customer 30 Contracted utilisation requirements and drive higher utilisation For personal use only Future build S1 Sydney Build in progress 25 Planned power increase fro
Slide 16: B2 Brisbane
B2 BRISBANE1 Technical space ~3,000sqm For personal use only Total IT capacity 6 MW Initial capacity ~1.5 MW Target PUE ~1.342 / 1.253 Design standard UTI Tier III Practical completion 2H17 1. Artist’s impression. Subject to change 2. Value relates to total energy consumption ratio during a full cal
Slide 17: M2 Melbourne
M2 MELBOURNE1 Technical space 10,000sqm+ For personal use only Total IT capacity 25 MW+ Initial capacity ~2 MW Target PUE ~1.282 / 1.103 Design standard UTI Tier III Practical completion 2H17 1. Artist’s impression. Subject to change 2. Value relates to total energy consumption ratio during a full c
Slide 18: S2 Sydney
1. Artist’s impression. Subject to change S2 SYDNEY1 2. Value relates to total energy consumption ratio during a full calendar year, dependent on load and supports a NABERS 5 star rating 3. Value refers to best instantaneous power consumption ratio within a calendar Technical space ~8,000sqm4 year,
Slide 19: Outlook
For personal use only FY17 Half-Year Results Outlook 19
Slide 20: FY17E outlook
FY17E outlook For personal use only Strong Revenue in the range of $115m to $122m (up 24% to 31% on FY16) growth in Growth in recurring revenue underpinned by long-term customer contracts revenue Expecting further growth in connectivity revenue underpinned by 42%1 growth in cross connects Benefi
Slide 21: Appendices
For personal use only FY17 Half-Year Results Appendices 21
Slide 22: Business strategy
For personal use only FY17 Half-Year Results Business strategy 22
Slide 23: Vision and Mission
VISION MISSION For personal use only Our vision is to help Our mission is to be the enterprises harness the leading customer-centric digital age, improving data centre services our society through the company, delivering advancement of solutions that power, secure technology and connect enterprise N
Slide 24: 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 25: Connect your physical and virtual worlds with AXON
Connect your physical and virtual worlds with AXON AXONVX connects your data centres, clouds and offices with your choice of network For personal use only Neutral Connect to any cloud, network or data centre anywhere in the world Connected Connection points in 49 data centres nationwide and growing
Slide 26: Seamless national network with cloud on-ramps
Seamless national network with cloud on-ramps For personal use only Inter-site connectivity Cloud and carrier on-ramp Carrier neutral Data centre neutral Carrier On demand interstate connections Marketplace Geo-redundancy Enterprise Premise B1 B2 Brisbane, QLD Enterprise P1 S1 S2 Colocatio
Slide 27: Australia's biggest network of ICT suppliers
Australia’s BIGGEST network of ICT suppliers Our growing network of 300+ partners For personal use only PREMIER PARTNERS CONTENT SOLUTIONS CLOUD CARRIER DISTRIBUTORS INTEGRATORS SERVICES NETWORKS NEXTDC 1H17 Results 27
Slide 28: Channel-first sales strategy
Channel-first sales strategy For personal use only Customers easily connect to a wide choice of service providers for seamless hybrid cloud NEXTDC 1H17 Results 28
Slide 29: Cloud Centre – network effects drive profit in the digital economy
Cloud Centre – network effects drive profit in the digital economy For personal use only NEXTDC’s Cloud Centre is the online marketplace for software, “Your new digital platform will allow you to participate in application or service providers to the evolving world of business, government, and consu
Slide 30: Leadership in sustainability
Leadership in sustainability For personal use only NABERS 4.5 star rating 2014 Finalist: M1 Melbourne – 2013 Winner: for energy efficiency the ‘Green’ data centre Sustainability M1 Melbourne (awarded June 2016) DatacenterDynamics Awards, Asia-Pacific ARN ICT Industry Awards National Australian Built
Slide 31: Certifications & Awards
Certifications & Awards Leading the Australian data centre industry For personal use only NEXTDC 1H17 Results 31
Slide 32: Industry overview
For personal use only FY17 Half-Year Results Industry overview 32
Slide 33: Virtualised, on-demand services drive rapid IT change
Virtualised, on-demand services drive rapid IT change "Cloud services will remain the essential foundation of the IT industry's 3rd For personal use only Platform of innovation and growth. As the cloud market enters an 'innovation stage', there will be an explosion of new solutions and value creatio
Slide 34: Cloud answers challenge of digital economy
Cloud answers challenge of digital economy "In our view, a near-tripling of the public-cloud-based workload mix represents For personal use only a monumental architectural shift…and is likely to create a major ripple effect across the entire technology landscape.” JP Morgan analysts Mark Murphy, Dou
Slide 35: Colocation data centres are hubs for cloud access
Colocation data centres are hubs for cloud access “Cloud services providers are amongst the largest users of For personal use only data centre facilities in the world and this is a catalyst for growth in the DC ecosystem, drawing enterprise customers, telcos and IT services firms.” Wonjae Shim, Rese
Slide 36: The shift to cloud has passed the tipping point
The shift to cloud has passed the tipping point "Cloud-first strategies are the foundation for staying relevant in a fast-paced For personal use only world…helping to create a new generation of start-ups and "born in the cloud" providers." Ed Anderson, research vice president at Gartner By 2020 In 2
Slide 37: Case studies
For personal use only FY17 Half-Year Results Case studies 37
Slide 38: 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, 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 6.0 100% commenced operations in 90% October 2011 5.0 80% Break-even reached after 4.0 70% 9 months of operation
Slide 39: Case study – M1 Melbourne
Case study – M1 Melbourne 1 Billing utilisation For personal use only Facility EBITDA ($m) Facility EBITDA 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 20.0 90% 18.0 80% 16.0 70% 14.0 60% 12.0 10.0 50% 8.0 40% 6.0 30% Highlights 4.0 20% 2.0 NEXTDC’s second facility, commenced operations in September 20
Slide 40: Case study – S1 Sydney
Case study – S1 Sydney 1 Billing utilisation For personal use only Facility EBITDA ($m) Facility EBITDA 2Q14 2H14 1H15 2H15 1H16 2H16 1H17 12.0 80% 10.0 70% 60% 8.0 50% 6.0 40% 4.0 30% Highlights 2.0 20% NEXTDC’s fourth facility commenced operations in September 2013 0.0 10% Break-even reached a
Slide 41: Disclaimer
For personal use only 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 at the pre