Superloop Ltd. · ASX:SLC
Superloop — Investor Presentation (June 2016)
36 slides from Superloop's investor presentation, Jun 17, 2016
Slide 1: Funding Strategic Expansion in Asia
Funding Strategic Expansion in Asia 17 June 2016
Slide 2: Important Information
IMPORTANT INFORMATION To the maximum extent permitted by law, the information contained in this The information in this presentation is not an offer or recommendation to presentation is given without any liability whatsoever being accepted by purchase or subscribe for securities in Superloop or to r
Slide 3: Executive Chairman quote on building telecommunications infrastructure in Asia
Building a telecommunications infrastructure business to help interconnect the fastest-growing industry in the world and doing it in Asia, the fastest- growing region in the world, is exactly where I wanted to be. - Executive Chairman, Bevan Slattery, Courier Mail, Sept 2015
Slide 4: Agenda
AGENDA 01 02 03 Market Trends Network Update Business Performance 04 05 06 Strategic Network Outlook & Priorities Capital Raising - Strategic Expansion Investments 4
Slide 5: Market Trends
01 MARKET TRENDS
Slide 6: Megatrend Recap / Data on the Rise
MEGATREND RECAP / DATA ON THE RISE Cloud data centre traffic Of total global traffic connected mobile devices 4-fold increase from 2013 to 2018 1 by 2018 1 greater than the world’s population 2 1. Cisco Public, Cisco Global Cloud Index: Forecast and Methodology White Paper, 2013 to 2018 2. Cisco Pub
Slide 7: Why Hong Kong
WHY HONG KONG International springboard to Mainland China and also gateway for Mainland China to the rest of the World Key DC Market in 13 International Submarine Key Hub for International Competitiveness APAC Region - with 10 cable (telecommunication) International Internet new DCs planned systems
Slide 8: Why Singapore
WHY SINGAPORE International springboard to and gateway between Asia and Europe Key DC Market in 15 International Submarine Key Hub for International Trade APAC Region - with 7 cable (telecommunication) International Internet new DCs planned systems Bandwidth/Connectivity Major Financial Hub for and
Slide 9: Network Update
02 NETWORK UPDATE
Slide 10: Singapore Investment
SINGAPORE INVESTMENT Singapore is home to more than 80 of the top 100 software and services companies. Many of them, including the top 15 software companies, have regional or Asia Pacific headquarters in the region. As a major global data management hub it features 15 international submarine cable s
Slide 11: Hong Kong Investment
NEW TERRITORIES HONG KONG INVESTMENT (completion in Dec 2016) TSUEN WAN Gateway to Asia & Mainland China & Global Leader in Digital Economy KOWLOON Agreement to establish fibre optic telecommunications network with KOWLOON BAY credible infrastructure partner - 25 year IRU with 5+5 year options ~110k
Slide 12: Australian Network
Brisbane AUSTRALIAN NETWORK AUSTRALIAN NETWORK (completed in Sep 2015) 15+10yr IRU on 288 cores of fibre connecting 40 Data Centres across Sydney, Melbourne and Brisbane Ability to breakout and extend Melbourne network to new enterprise buildings and data centres Sydney 12
Slide 13: International Network
INTERNATIONAL NETWORK (AS OF JUNE 2016) INTERNATIONAL NETWORK HONG KONG LOS ANGELES INTERNATIONAL NETWORK ABLE TO DELIVER END TO END CONNECTIVITY SOLUTIONS FOR CARRIER/WHOLESALE AND ENTERPRISE CUSTOMERS IN SINGAPORE AUSTRALIA, SINGAPORE, HONG KONG AND THE UNITED STATES Legend BRISBANE Metro Fibre Ex
Slide 14: Business Performance
03 BUSINESS PERFORMANCE
Slide 15: Key Achievements to June 2016
KEY ACHIEVEMENTS TO JUNE 2016 $10.0m Progressed development of Singapore and Australia monthly products including Superloop 360, Contracted annualised recurring recurring revenue covering direct Wavelength, Ethernet Backhaul revenue over $10m on 31 March, network operating costs and Ethernet Access
Slide 16: Performance Year to Date (9 months to March 2016)
PERFORMANCE YEAR TO DATE (9 months to 31 March 2016) FIBRE DATA CENTRES REVENUE MARGIN 300km 48 $10m+ 20.6% SINCE 1 JULY 2015 SINCE 1 JULY 2015 SINCE 1 JULY 2015 SINCE 1 JULY 2015 annualised contracted recurring gross margin: revenue at 31 March 2016 revenue less network operating costs DECEMBER 201
Slide 17: The Power of Infrastructure
THE POWER OF INFRASTRUCTURE How additional revenue is translating to significantly increased margin due to low incremental operating costs associated with selling available capacity Annualised Contracted Revenue Increase in revenue compared to direct costs (Singapore) Annualised Network Costs increa
Slide 18: The Power of Infrastructure: Singapore Example
THE POWER OF INFRASTRUCTURE Singapore Example Contracted Customer Margin Core Cable Utilisation 60% Incremental new on-net sales have 50% a high gross margin (>85%) 40% 30% 20% 10% Core cable utilisation is low, with significant spare capacity to sell more FY16-Q1 FY16-Q2 FY16-Q3 18
Slide 19: Power of Infrastructure - Duct Ownership
POWER OF INFRASTRUCTURE - DUCT OWNERSHIP There are two key elements of Singapore duct ownership provides an ability for Superloop infrastructure: to double capacity for an additional $6m investment Superloop owns its Singapore duct network, and the cable(s) installed in it. Duct $29m $0m The existin
Slide 20: Sales Update
SALES UPDATE $10m+ +23% Contracted annualised recurring revenue Increase in qualified (unweighted) pipeline at 31 March 2016 (up) since December 2015 Contracted annualised recurring revenue now over $10m, Innovative products being deployed to meet customer achieved by March 2016, three months ahead
Slide 21: Expanded Product Set (Greater Share of Wallet)
EXPANDED PRODUCT SET (GREATER SHARE OF WALLET) LIVE LIVE .SG LIVE .SG Q3 2016 Ethernet Backhaul is a layer 2 Wavelength provides a dedicated Ethernet is the preferred solution Dark Fibre is a dedicated fibre-optic point-to-point service connecting circuit provisioned between two for many carriers an
Slide 22: Strategic Network Expansion
04 STRATEGIC NETWORK EXPANSION
Slide 23: Singapore Exchange Expansion Opportunity
SINGAPORE EXCHANGE EXPANSION OPPORTUNITY The SGX (Singapore Exchange) low latency, diverse loop (17km, Pre-committed/initial diverse paths) is a Investment Annual Revenue , connecting 4 strategic locations including the Singapore Exchange, iO and NTT data centres. (key financial Initial pre-committe
Slide 24: Hong Kong's Tech Hub: TKO Industrial Estate & Adjacent Precinct
HONG KONG’S TECH HUB APG SCS TKO INDUSTRIAL ESTATE & ADJACENT PRECINCT Site north of Global Switch has had interest. Land Sale north of TKO IE (Sunevision site) was undertaken for high tier DCs ASE CLS Global Switch HK Stock Exchange DC Digital Realty/Savvis HSBC Data Centre NTT Next Media Pacnet TV
Slide 25: Proposed TKO Express
PROPOSED TKO EXPRESS CONNECTING CHAI WAN TO TKO. TECH HUB Data Centres Fibre Network TKO Express is a new domestic TKO Express Submarine Cable submarine cable designed to provide the most direct path between Superloop’s core network in the data centre campuses of Chai Wan and Tseung Kwan O (TKO) Ind
Slide 26: Outlook and Priorities
05 OUTLOOK AND PRIORITIES
Slide 27: Outlook / Priorities
OUTLOOK / PRIORITIES Deliver further transaction synergies from APEXN and Cinenet Absolute focus on achieving EBITDA Complete installation of remaining Execute key strategic sales acquisitions breakeven as quickly as possible Hong Kong core network and TKO opportunities in each market to Express sub
Slide 28: Capital Raising - Strategic Investment
06 CAPITAL RAISING - STRATEGIC INVESTMENT
Slide 29: Capital Raising - Strategic Investment
CAPITAL RAISING - STRATEGIC INVESTMENT Fully underwritten 1 for 7 accelerated pro-rata non-renounceable entitlement offer to raise gross proceeds of approximately A$35.3 million. Approximately 16.8 million new Superloop ordinary shares to be issued (or 12.5% of the ordinary shares on issue after $2.
Slide 30: Use of Proceeds - Strategic Investments
USE OF PROCEEDS - STRATEGIC INVESTMENTS Additional sites beyond initial 30 strategic sites Supercharging our network Other customer led opportunities to drive further growth in customer acquisition, now and in the future. Project Red Lion future phases (buildings beyond initial 25) iO / SGX loop cus
Slide 31: Pro Forma Balance Sheet
PRO FORMA BALANCE SHEET Cash and cash equivalents 35,055 34,268 69,323 Receivables and other current assets 1,502 - 1.502 Property, plant and equipment 54,572 - 54,572 Intangible assets 12,429 - 12,429 - 31
Slide 32: Pro Forma Balance Sheet (Cont)
PRO FORMA BALANCE SHEET (Cont) Trade and other payables 2,649 - 2,649 100,909 34,268 135,177 Issued capital 109,628 34,268 146,470 Other Equity (8,719) - (8,719) 32
Slide 33: Indicative Timetable
INDICATIVE TIMETABLE Institutional Entitlement Offer opens Friday, 17 June 2016 Institutional Entitlement Offer closes Monday, 20 June 2016 Existing shares recommence trading on ex-entitlement basis Tuesday, 21 June 2016 Record Date for the Entitlement Offer Tuesday, 21 June 2016 Retail Entitlement
Slide 34: Specific Risks
SPECIFIC RISKS Superloop is highly dependent upon qualified, technical and managerial Superloop may undertake development of new fibre optic telecommunications personnel. With only a small number of employees, it is essential that infrastructure, and expansion, maintenance, and refurbishment of exis
Slide 35: Specific Risks and General Risks
SPECIFIC RISKS GENERAL RISKS Superloop’s business is capital intensive in nature, and the continued As Superloop currently conducts business in Australia, Singapore Factors affecting the price at which Superloop shares are traded on ASX growth of Superloop relies on the acquisition and development o
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