Slide 1: Discover Asia's New Extraordinary Network
Discover Asia’s New Extraordinary Network SLC:ASX Recapitalisation Update Tuesday 24 September 2019 BRISBANE 1 24/9/19 ASX Update
Slide 2: Disclaimer
Disclaimer • No reliance To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Superloop Limited (Superloop) or any of its related bodies corporate or their respective directors, officers, partners, employees
Slide 3: Agenda
Agenda Overview of Recapitalisation Plan Company Overview FY20 Guidance Placement and Entitlement Offer Appendices ADELAIDE 3 24/9/19 ASX Update
Slide 4: Executive Summary: Recapitalisation of Superloop
Executive Summary: Recapitalisation of Superloop Recap of 27 Aug ASX Update Recapitalisation Plan announced today ● Superloop has invested $256m capital into ● $90m Placement and rights issue underwritten APAC fibre networks, ~2 years into 20+ year by Canaccord Genuity & Morgans useful asset life ● R
Slide 5: Overview of Recapitalisation Plan
Overview of Recapitalisation Plan PERTH 5 24/9/19 ASX Update
Slide 6: Recapitalisation reduces drawn debt below $10m with >$60m headroom
Recapitalisation reduces drawn debt below $10m with >$60m headroom on a 30 Jun 2019 pro-forma basis $93.5m Net debt plus net payables $89.2m at 30 June 2019 of $93.5m $6.3m A Equip. Lease Recapitalisation Plan $23.2m announced today: $18.9m $68.0m $70.3m $6.3m $90m underwritten Equip. Lease A placem
Slide 7: Proposed Recapitalisation
Proposed Recapitalisation Capital Plan of $90m equity raising via Placement and Entitlement Offer coupled with restructured of Senior Bank Facility General Sources and Uses Restructured Senior Bank Facility Sources $’m Share placement and rights issue 90 $61.7m Facility Limit, 4-year term, Available
Slide 8: Restructured Senior Bank Facility - Key Terms (page 1 of 2)
Restructured Senior Bank Facility- Key Terms (page 1 of 2) Key Terms • Australia and New Zealand Banking Group Limited ABN 11 005 357 522 1 Lenders • Westpac Banking Corporation ABN 33 007 457 141 2 Amount A$61.7m 3 Maturity Date 4 yr maturity Amount Facility Type Purpose (A$) Revolving capex • Succ
Slide 9: Restructured Senior Bank Facility - Key Terms (page 2 of 2)
Restructured Senior Bank Facility- Key Terms (page 2 of 2) Key Terms 6 Security First ranking security over all assets and undertakings SLC undertakes to ensure compliance with the following financial undertakings (tested at 31 December, 31 March, 30 June and 30 September in each year): Leverage Rati
Slide 10: Company Overview
Company Overview HONG KONG 10 24/9/19 ASX Update
Slide 11: Company Highlights
Company Highlights Founded in 2014 to connect Asia Pacific to the cloud, with a legacy-free network capable of fulfilling the growth in demand for bandwidth Invested $256m in advanced fibre networks connecting bandwidth-intensive properties across Asia Pacific, on average 2 years into 20+ year useful li
Slide 12: Overview of Superloop's portfolio connecting Asia Pacific
Overview of Superloop’s portfolio connecting Asia Pacific 1 2 3 Asia Pacific Platforms leveraging Non-core Total Group Core Fibre Network Fibre Network CMS Fibre networks connecting Fixed Wireless (Connectivity), Cloud Managed Services key hubs in Singapore, Australia & Guest WiFi (Broadband), Home pr
Slide 13: Changing revenue profile towards infrastructure
Changing revenue profile towards infrastructure FY18 Revenue: $118.2m FY19 Revenue: $119.8m Connectivity revenues from brand new fibre network 3% Subsea infrastructure (+ fixed 12% Dev. wireless) already Subsea contributing 47% of group revenue Dev. 34% 21% Broadband segment, Connectivity Services 47%
Slide 14: Complete connectivity platform for Asia Pacific
Complete connectivity platform for Asia Pacific (Reporting segment) Fibre Networks in Singapore, (Connectivity) Australia & Hong Kong Fixed Wireless Network (Connectivity) across Australia CyberHound secure (Services) internet Guest WiFi platform for leisure, health & education (Broadband) campuses R
Slide 15: FY19 Operational Highlights
FY19 OPERATIONAL HIGHLIGHTS On-Net Buildings Award-winning Completed Asia Pacific network core network loop ~392 Best Telco Innovation Best Fixed Wireless Provider INDIGO & AU backbone +26% YoY Best Virtual Network Operator Traffic on Network Re-launched Integrated teams +1900% portfolio Unified ~300-s
Slide 16: Invested capital in fibre network assets now live
Invested capital in fibre network assets now live(1) $256m INDIGO subsea cable $48m Year Old <2 Hong Kong Network Australia Assets Singapore $163m $82m Weighted average asset age as at 30th June 2019 $129m $69m + Years $57m $41m $68m 20 Useful Life $45m $23m $33m $7m Weighted average asset useful lif
Slide 17: Revenue growth on new fibre network assets
Revenue growth on new fibre network assets $35.2m $3.1m Core Fibre Connectivity Revenues(1) Hong Kong 89% YoY Australia(2) $21.8m Core Fibre Connectivity Revenues(1) $18.6m Singapore $1.3m $12.3m 67% $0.1m $11.3m $7.6m $9.4m 3 Yr CAGR (3) $10.3m $7.6m $6.0m $0.0 $2.9m FY15 FY16 FY17 FY18 FY19 (1) Cor
Slide 18: Platforms leveraging fibre connectivity foundation
Platforms leveraging fibre connectivity foundation $61m Fixed Wireless Connectivity Total Annual Revenue provides primary and alternative secondary access to Fixed Wireless (Connectivity) $55m businesses across Australia, leveraging the fibre backbone Guest WiFi (Broadband) $21m Guest WiFi Broadband H
Slide 19: Brand new core fibre networks across Asia Pacific
Brand new core fibre networks across Asia Pacific HONG KONG SINGAPORE FIBRE FIBRE & NETWORK DUCT NETWORK APAC AUSTRALIA SUBSEA FIBRE CABLE NETWORK NETWORK (INCL. INDIGO) 1 19 24/9/19 ASX Update
Slide 20: Fibre connectivity network footprint: buildings & fibre kms
Fibre connectivity network footprint: buildings & fibre kms Buildings Connected Fibre Kms excluding INDIGO ~894km Hong Kong ~392 Australia 32 ~671km 248 Australia Singapore ~310 ~614km 239 28 ~265 221 17 301 430 Singapore 225 242 200 217 216 176 190 48 57 59 Hong Kong FY17 FY18 FY19 FY17 FY18 FY19 1
Slide 21: Fibre connectivity markets
Fibre connectivity markets Singapore Australia Hong Kong REVENUE FY19 REVENUE FY19 REVENUE FY19 $10.3million $20.8million (1) $3.1million 73% YoY growth 100% YoY growth 74% YoY growth $59m Invested Capital $68m invested capital $82m Invested capital 15% Utilisation 12.3% Utilisation 3.5% Utilisation
Slide 22: FY20 Guidance
FY20 Guidance SINGAPORE 22 24/9/19 ASX Update
Slide 23: FY20 Guidance Reiterated
FY20 Guidance Reiterated ● INDIGO subsea cable live & billing recurring revenues with strong pipeline of opportunities ● Recurring revenue growth from core fibre connectivity FY20 EBITDA Growth networks across Asia Pacific ● Lower direct costs from removing duplication & migration of off-net customers
Slide 24: Placement and Entitlement Offer
Placement and Entitlement Offer MELBOURNE 24 24/9/19 ASX Update
Slide 25: Key terms of the offer
Key terms of the offer ● Fully underwritten Placement and 1 for 6 accelerated non-renounceable entitlement offer to raise gross proceeds of up to Offer Size and Structure approximately $90 million (Offer) z ● Issue of approximately 110 million new ordinary shares (“New Shares”) representing 30% of p
Slide 26: Pro Forma Balance Sheet and Use of Funds
Pro Forma Balance Sheet and Use of Funds 30 June Proceeds of Pro Forma Pro Forma Balance Sheet 2019 the Offer 30 June 2019 ($m) (after costs) ($m) Sources $’m Cash & cash equivalents 18.9 18.9 Share placement & 90.0 Trade Receivables 27.1 27.1 rights issue Property, plant & equipment 228.7 228.7 Tot
Slide 27: Offer Timetable
Offer Timetable Milestone Milestone Date Trading halt and announcement of Capital Raise Tuesday, 24 September 2019 Placement Bookbuild and Institutional entitlement offer conducted Tuesday , 24 September 2019 and Wednesday, 25 September 2019 Record Date for Retail Entitlement Offer (7pm AEDT) Thursd
Slide 28: Key Risk Factors (page 1 of 3)
Key Risk Factors (page 1 of 3) These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to participat
Slide 29: Key Risk Factors (page 2 of 3)
Key Risk Factors (page 2 of 3) These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to participat
Slide 30: Key Risk Factors (page 3 of 3)
Key Risk Factors (page 3 of 3) These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to participat
Slide 31: Appendix
Appendix Definitions Foreign Selling Restrictions MELBOURNE 31 24/9/19 ASX Update
Slide 32: Appendix 1: Definitions
Appendix 1: Definitions IRU: Indefeasible Right of Use: is a permanent contractual agreement, that cannot be undone, between the owners of a communications system and a customer of that system. The word "indefeasible" means "not capable of being annulled, or voided, or undone." The customer purchases
Slide 33: Appendix 2: Foreign Selling Restrictions (page 1 of 3)
Appendix 2: Foreign Selling Restrictions (page 1 of 3) This document does not constitute an offer of new ordinary shares in Superloop Limited (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not
Slide 34: Appendix 2: Foreign Selling Restrictions (page 2 of 3)
Appendix 2: Foreign Selling Restrictions (page 2 of 3) This document does not constitute an offer of new ordinary shares in Superloop Limited (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not
Slide 35: Appendix 2: Foreign Selling Restrictions (page 3 of 3)
Appendix 2: Foreign Selling Restrictions (page 3 of 3) This document does not constitute an offer of new ordinary shares in Superloop Limited (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not
Slide 36: Thank you Contact details
Thank you Contact details investor@superloop.com https://investors.superloop.com/Investors/ Upcoming Events Superloop Annual General Meeting, Brisbane 30th October 2019 SYDNEY 36 24/9/19 ASX Update