Slide 1: FY24 Results
FY24 Results. Superloop Limited (ASX:SLC) Wednesday, 21 August 2024
Slide 2: Disclaimer
Disclaimer. No reliance No offer to acquire Superloop shares To the maximum extent permitted by law, the information contained in this presentation is given The information in this presentation is not an offer or recommendation to purchase or subscribe for without any liability whatsoever being acce
Slide 3: Performance Highlights
Performance Highlights. Total Underlying Free Customers4 Revenue1 EBITDA2 Cash Flow3 $420.5m $54.3m $29.2m 455k 30.0% YoY 45.2% YoY 26.0% YoY 23.9% YoY 23.0% organic 1 Revenue including Other Income. Organic revenue growth % calculation removes impact of VostroNet and MyRepublic user acquisitions in
Slide 4: Strong growth, Guidance exceeded
Strong growth, Guidance exceeded. Tracking ahead of 3-Year Plan: milestone contract wins, record organic revenue growth, continuing EBITDA growth Groundbreaking Continuing nbn Consumer Business revenue Wholesale Lowest cost Tracking ahead of 6-year Origin and market share revenue growth of up 4.3% w
Slide 5: Revenue up 30% driving strong profitability
Revenue up 30% driving strong profitability. Operating leverage evident with Underlying EBITDA increase of 45.2% exceeding revenue growth. Underlying EBITDA margin increased by 1.3% to 12.9% Revenue1 ($m) Underlying EBITDA2 from continuing operations ($m) 1H 2H +30.0% 1H 2H EBITD A % 80,000 14.0% 13
Slide 6: Revenue growth contributions across all segments
Revenue growth contributions across all segments. Consumer the stand-out with 47.1% revenue growth. Contract wins to substantially increase Wholesale revenue from FY25. CONSUMER ($m) BUSINESS ($m) WHOLESALE ($m) +47.1% 1H 2H +4.3% +9.4% 1H 2H 1H 2H 104.0 48.0 264.6 99.8 43.9 80.5 38.3 51.4 179.8 145
Slide 7: Continuing market share gain with large opportunity
Continuing market share gain with large opportunity. Record nbn adds of 78k in FY24, across all segments. nbn market share increased by 0.9% to 4.0% at 30 June 2024 Strong nbn net add performance by Superloop Sustained market share gains from Superloop over last two years (nbn Wholesale Market Indic
Slide 8: Growing brand awareness is enabling strong gains
Growing brand awareness is enabling strong gains in higher value products. Brand awareness has continued to improve Significant market share gains Capturing market share as nbn since relaunch of Superloop in Q3 FY23 in high-speed plans expands Fibre-to-the-Premises (FTTP) footprint Superloop Prompte
Slide 9: Over 87,000 net new customers
Over 87,000 net new customers1. Consumer • 80k net new customers added, including Record organic growth, now servicing more than 455k customers 68k net nbn adds. Record organic growth year. • Group share of new nbn orders in FY24 Superloop Group (‘000) Consumer (‘000) of 8.0%, increasing overall mar
Slide 10: Products enabled by our modern network and simple operating model
Products enabled by our modern network and simple operating model. Strong segment revenue growth driving increased utilisation across our Tier 1 network CONSUMER BUSINESS WHOLESALE Internet, Data & nbn Products Mobile & Voice Products: Security Solutions Security & Managed Services Managed WiFi and
Slide 11: Infrastructure economics enables our value play
Infrastructure economics enables our value play. Domestic and global networks combined with integrated digital stack delivers low-cost base. Existing capacity to support more than 1 million active nbn connections. Our Connectivity to nbn with Global network Common digital stack Capabilities >1 milli
Slide 12: Our approach to ESG
Our approach to ESG. Integrating ESG principles across the business Maintain a solid Our ESG 1 2 3 Reduce our Use our influence foundation for Framework environmental impact for good sustainable growth Governance Environmental Governance: best practice governance practices including regular reviews
Slide 13: Financial Performance
Financial Performance. FY24 Highlights Financial Performance Segment Update FY25 Outlook Appendices
Slide 14: Positive momentum across key financial metrics
Positive momentum across Revenue and other income Growth across all three segments with key financial metrics. revenue up $97.0m (+30.0%) $m FY23 FY24 Change Change % Gross Margin increased by $28.2m from higher revenue. Strong growth in Consumer Revenue and other income 323.5 420.5 +97.0 +30.0% res
Slide 15: Gross margin growth of 24%
Gross margin growth of 24% with all segments contributing. Gross Margin ($m) Gross Margin YoY Growth ($m) GM%: 34.8% (-1.3% vs PCP) Gross Margin 2.2 145.1 3.8 GM % 28.6 Wholesale 22.3 59.5% (-0.6% YoY) 44.7% 116.9 26.4 36.1% Business 34.8% 41.8 32.7% 40.2% (+2.1% YoY) 145.1 38.0 116.9 81.5 74.7 Cons
Slide 16: Low-cost structure delivering operating leverage
Low-cost structure delivering operating leverage. Opex/Revenue1 Opex by Type ($m) Revenue (#039;m) Opex/Revenue (%) Employee Exp enses Other Opex Marketing 46.2 45.9 21.0% 41.5 +1% HoH 38.0 18.7% 18.2% 16.1% 31.4 29.6 -2% HoH 223 198 175 -1% HoH 149 1H 23 2H 23 1H 24 2H24 1H 22 2H 22 1H 23 2H 23 1H 24
Slide 17: Disciplined investment in capex to support growth
Disciplined investment in capex to support growth. FY24 cash capex of $25.0m inclusive of additional capex of $3m for Origin and AGL wholesale wins FY24 FY24 Capex FY25 Capex ($m) • FY24 cash capex of $25m. Category $m 5-6 28 - 30 • Includes $3m of the announced $5m additional capex to 2 upgrade net
Slide 18: Continued upward trend of cash flow generation
Continued upward trend of cash flow generation. Metric FY24 Underlying EBITDA – Operating cash Operating Cash Flow ($m) flow conversion (%) Operating Cash Flow $49.9m 49.9 115.6% 43.2 92.0% Operating Cash Flow Conversion 92% Net Cash/(Debt) $3.6m Indicative Net Leverage Ratio n/a (net cash) Indicati
Slide 19: Segment Update
Segment Update. FY24 Highlights Financial Performance Segment Update FY25 Outlook Appendices
Slide 20: Record growth in Consumer segment
Record growth in Consumer segment. 80k net new customers and revenue growth of $84.7m (+47.1%) $m FY24 FY23 % Change Consumer Revenue ($) and Gross Margin (%) Revenue 264.6 179.8 47.1% 32.5% 28.4% 28.1% COGS (189.9) (127.4) 49.0% 25.6% 24.7% Gross Margin 74.7 52.4 42.5% 20.9% 145.7 118.9 101.9 Gross
Slide 21: Steady profitable growth in Business segment
Steady profitable growth in Business segment. Gross Margin up 9.9%, driven by growth in Large Corporate $m FY24 FY23 % Change Business Revenue ($) and Gross Margin (%) Revenue 104.0 99.8 4.3% 40.1% 40.5% 39.9% COGS (62.2) (61.7) 0.8% 36.1% 32.4% Gross Margin 41.8 38.0 9.9% 30.1% 52.6 51.6 51.4 48.1
Slide 22: Business signed over 90 new corporate logos
Business signed over 90 new corporate logos in FY24 including: 22 FY24 Results | Superloop Limited
Slide 23: Acceleration in Smart Communities
Acceleration in Smart Communities. Strong year with wins entrenching market leadership in Build-to-Rent and Tertiary Accommodation Sales Smart Communities Lots1 • Increased lots 1 secured by 10k or 15% to 79k, including: • Significant wins in Fibre-to-the-Premises (FTTP) offering in Build-to-Rent +1
Slide 24: Record year for Wholesale segment
Record year for Wholesale segment, set up for FY25. Ground-breaking year with Origin and AGL contract wins $m FY24 FY23 % Change Wholesale Revenue ($) and Gross Margin (%) Revenue 48.0 43.9 9.4% COGS (19.4) (17.5) 11.0% 67.8% 65.5% 58.9% 61.4% 59.3% 59.7% Gross Margin 28.6 26.4 8.3% 25.1 Gross Margi
Slide 25: Wholesale signed 39 new logos in FY24
Wholesale signed 39 new logos in FY24 including: 25 FY24 Results | Superloop Limited
Slide 26: Origin win to provide step-change in FY25 earnings
Origin win to provide step-change in FY25 earnings. Exclusive six-year broadband services contract to contribute Underlying EBITDA of $19m annually, based on Origin’s 130k subscribers at time of signing. Growth in Origin’s customer base will generate additional earnings. 14 March 2024 April-June Jul
Slide 27: FY25 Outlook
FY25 Outlook. Highlights Financial Performance Segment Update FY25 Outlook Appendices
Slide 28: Double-Down strategy is to accelerate revenue and profitability
‘Double-Down’ strategy is to accelerate revenue and profitability. Key metrics of ‘Double Down’ Strategy Ambition FY23 Growth (End of FY26) Consumer Customers 242k +258k 500k Revenue $323.5m +$376.5m $700m Underlying EBITDA 1 $37.4m +$67.6m $105m Underlying EBITDA Margin 11.6% +3.4% >15% Net Profit
Slide 29: Tracking ahead of plan
Tracking ahead of plan. Contract wins in FY24 the foundation for step-change in FY25. Customer numbers, revenue and EBITDA reflect strong performance across the three segments Ambition Metric FY24 FY24 Scorecard (End of FY26) Consumer Customers 322.9k 500k Record organic net adds of 80k in FY24 Reve
Slide 30: FY25 Focus - Year 2 of Double Down
FY25 Focus – Year 2 of Double Down. Expand on the strong foundations laid in FY24 Maintain Cost Leadership Organic growth Acceleration via M&A • Maintain cost to acquire • Successfully deliver Origin • Continuing M&A opportunity • Invest in digitisation and contract assessment automation • Increase
Slide 31: FY25 Outlook
FY25 Outlook. Positive outlook for FY25 with substantial growth in Underlying EBITDA1 reflecting nbn market share gains and transitioning of key contract wins FY25 Outlook FY24 Actual • Affirming Underlying EBITDA1 outlook provided on 14 March 2024, range of Underlying EBITDA1 $83m - $88m $54.3m $83
Slide 32: Appendices
Appendices. Highlights Financial Performance Segment Update FY25 Outlook Appendices
Slide 33: Group Income Statement
Group Income Statement. $m FY24 FY23 Consumer Business Wholesale TOTAL Consumer Business Wholesale TOTAL Revenue 264.6 104.0 48.0 416.6 179.8 99.8 43.9 323.5 Cost of Goods Sold (189.9) (62.2) (19.4) (271.5) (127.4) (61.7) (17.5) (206.7) GROSS MARGIN 74.7 41.8 28.6 145.1 52.4 38.0 26.4 116.9 Other In
Slide 34: Operating Expenses
Operating Expenses. $m FY24 FY23 Change % Employee Expenses 53.9 48.6 10.9% Professional fees 2.8 2.4 16.8% Board Costs 1.0 1.3 (27.2%) Travel & Communications 2.0 1.4 40.8% Office Administration Costs 12.3 10.1 21.3% Doubtful Debts 1.7 1.3 26.6% NON-MARKETING OPERATING EXPENSES 73.6 65.2 12.9% Mark
Slide 35: Adjusting for Non-Cash Intangible Amortisation (NPATA)
Adjusting for Non-Cash Intangible Amortisation (NPATA). $m 1H 22 2H 22 1H 23 2H 23 1H 24 2H 24 STATUTORY EBITDA 3.2 9.5 10.0 15.7 16.5 22.0 Depreciation & Amortisation Depreciation (10.6) (11.1) (11.7) (12.1) (12.2) (12.8) Amortisation (3.0) (3.1) (6.7) (8.9) (9.0) (10.3) Amortisation of Acquired In
Slide 36: Underlying EBITDA to NPAT: FY25 Commentary
Underlying EBITDA to NPAT: FY25 Commentary. $m FY23 FY24 FY25 Notes Origin Equity Consideration of $4m-$5m to be recognised in FY25, UNDERLYING EBITDA 37.4 54.3 relating to the shares provided as part of the Origin contract. Amounts Share Based Payments - Employees (non-cash) (1.8) (2.0) will be e
Slide 37: Cash flow
Cash flow. $m FY24 FY23 Change % Gross operating cash flow 56.6 45.6 +24.1% Transaction and rebranding payments (3.0) (2.4) +20.7% Taxes paid on sale of SG assets (3.8) - Cash inflow / (outflow) from operating activities 49.9 43.2 +15.6% Capex (25.0) (20.7) +20.4% Investing cash flows on M&A activit
Slide 38: Underlying EBITDA to Cash Flow
Underlying EBITDA to Cash Flow. 2.4 56.6 (25.0) 54.3 Tax payment relating to FY22 divestment of SG assets (3.0) 0.5 29.2 (3.8) (6.5) 0.5 19.4 Underlying Working Capital Gross Operating Capex Transaction costs Other Investing Free Cash Flow M&A-related Lease payments Other finance Net movement in EBI
Slide 39: Balance Sheet
Balance Sheet. $m 30 Jun 23 31 Dec 23 30 Jun 24 Cash & Cash Equivalents 32.2 42.8 51.6 Current Assets 34.5 39.7 51.7 Property, Plant & Equipment 126.7 124.3 124.0 Rights and Licences 70.7 67.1 59.4 Other Intangible Assets 87.5 75.8 66.2 Goodwill From Acquisitions 166.8 166.8 166.8 Non-Current Assets
Slide 40: Customer number definition
Consumer Unique customers on various access technologies such as nbn™, Superloop Fixed Wireless and mobile. A single customer with multiple services (such as broadband, VoiP and mobile) only counts as a single customer. Business Unique end business locations on various access technologies such as Su
Slide 41: Thank you
Thank you. Superloop Limited investor@superloop.com https://investors.superloop.com