Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — Investor Presentation (October 2018)
17 slides from Netlink Nbn Trust's investor presentation, October 2018
Slide 1: Investor Presentation
Investor Presentation October 2018 The joint issue managers of the initial public offering and listing of NetLink NBN Trust were DBS Bank Ltd., Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch. The joint underwriters of the initial public offering and listing of NetLink NBN Trust w
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in NetLink NBN Trust (the “Trust” and the units in the Trust, the “Units”
Slide 3: Overview
Overview Key Highlights Financial Snapshot • Sole appointed “Network Company” Q1 Variance vs $m FY19 Projection(1) for Singapore's Next Gen NBN • Resilient business model generates Revenue 86.1 2.8% long-term, predictable cash flows EBITDA 61.0 4.5% through: • Growing demand for fibre EBITDA Margin
Slide 4: Fibre is a critical infrastructure enabling Singapore's Next Gen NBN
Fibre is a critical infrastructure enabling Singapore’s Next Gen NBN Fibre is the medium of #1 choice for delivering broadband services Fibre capacity is scalable About 9 out of 10 FIBRE IS homes in Singapore ‘FUTURE PROOF’ has a fibre termination point installed Fibre is used to Fibre broadband sup
Slide 5: Our network
Our network 1,217,079 44,784 1,129 End-Users End-Users Connections * Figures are as at 30 Jun 2018 ~90% share of ~35% share of residential market non-residential market 5
Slide 6: A resilient business model
A resilient business model RAB Regulated Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of Q1
Slide 7: Fibre connections
Fibre connections Residential Non-Residential Non-Building Address Points ’000 ’000 1,300 1,278 50 47.3 1,800 43.9 44.8 1,592 1,600 1,217 2.1% 1,200 1,192 40 38.5 1,400 2.1% 31.5 1,200 1,129 1,095 1,100 30 1,000 835 IPO Projection IPO Projection IPO Projection 800 35.2% 1,000 20 600 938 400 357 900
Slide 8: Q1 FY19 Profit & loss statement
Q1 FY19 Profit & loss statement Variance S$’000 Q1 FY19(1) Projection(2) (%) Revenue was higher than IPO projection mainly due to higher Revenue 86,112 83,795 2.8 diversion revenue and ducts & manhole revenue, which was EBITDA 60,992 58,339 4.5 partially offset by lower installation-related revenue.
Slide 9: Balance sheet as at 30 Jun 2018
Balance sheet as at 30 Jun 2018 Cash Balance S$69m Gross Debt S$591m Net Assets S$3,069m Gross Debt/EBITDA(1) 2.5x EBITDA Interest Cover(1) 13.1x Net Assets per unit(2) 78.8 cents (1) Ratios calculated based on NetLink Trust Group’s trailing 12-month financials (2) Net assets per unit represents equ
Slide 10: Growth opportunities
Growth opportunities In the next 300,000 Residential Increasing Non-residential NBAP demand 5 years homes not on fibre market share from 35% from Smart broadband & new Nation, IoT household formations and mobile Residential and Non-residential Smart 5G Mobile Beyond the IoT Nation technology next 5
Slide 11: Attractive distribution yield with low risk
Attractive distribution yield with low risk NetLink NBN’s Distribution Yield vs Other Investments 1 7% 6.2% 6% 5.5% 5% 4.0% Yield (%) 4% 3% 2.5% 2.3% 2.5% 2% 1% 0.4% 0% • The Trust’s distribution policy is to distribute 100% of its cash available for distribution • Distributions made by the Trust ar
Slide 12: Well-positioned to deliver long-term value and growth
Well-positioned to deliver long-term value and growth 1 Critical infrastructure enabling Singapore’s Next Gen NBN Resilient business model with transparent, predictable and 2 regulated revenue stream Sole nationwide provider of residential fibre network in 3 Singapore Well-positioned to benefit from
Slide 13: Thank You
Thank You NetLinkNBN
Slide 14: Supplemental Business Information
Supplemental Business Information 14
Slide 15: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Pricing of NLT’s principal services are regulated by IMDA • IMDA shall hold a review of pricing terms every five years following the last price review, or at any such time as IMDA may consider appropriate (which may include a mid-term review in the third year
Slide 16: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Framework for RAB Based Pricing Model Methodology for RAB based pricing model 1 1 • Base year of the RAB is 2012 RAB WACC – Assets purchased up to 2012 are valued at 2012 Cost Base prices for RAB – Assets purchased after 2012 are valued at actual cost 2 2 • N
Slide 17: Understanding the ICO pricing framework
Understanding the ICO pricing framework Illustrative Worked Example How Does EAC Work for 1 Year’s Outflow on Capex? Assuming Opening RAB of S$1Bn, WACC of 7.0% and Asset Useful Life of 10 Years EAC (S$ MM) RAB (S$MM) 300 1,000 750 200 142 142 142 142 142 142 142 142 142 142 500 34 26 18 9 65 60 54
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