Megaport Ltd. · ASX:MP1
Megaport — Investor Presentation (April 2020)
29 slides from Megaport's investor presentation, Apr 7, 2020
Slide 1: Placement & Share Purchase Plan
Placement & Share Purchase Plan APRIL 7, 2020 Not for release to US wire services or distribution in the United States Megaport Limited | ACN 607 301 959 | ASX: MP1
Slide 2: Important information
Important information No offer to acquire Megaport shares This presentation has been prepared by Megaport Limited (ACN 607 301 959) (Megaport or Company) in The information in this presentation is not an offer or recommendation to purchase or subscribe for connection with an institutional placement
Slide 3: Important information (cont’d)
Important information (cont’d) Canada (British Columbia, Ontario and Quebec provinces) These rights and remedies must be exercised within prescribed time limits and are subject to the This document constitutes an offering of New Shares only in the Provinces of British Columbia, Ontario and defenses
Slide 4: Important information (cont’d)
Important information (cont’d) Certain Canadian income tax considerations. Prospective purchasers of the New Shares should New Zealand consult their own tax adviser with respect to any taxes payable in connection with the acquisition, This document has not been registered, filed with or approved by
Slide 5: Important information (cont’d)
Important information (cont’d) This document has been given to you on the basis that you are (i) an existing holder of the Company’s Any invitation or inducement to engage in investment activity (within the meaning of section 21 of the shares, (ii) an "institutional investor" (as defined in the SFA)
Slide 6: Important information (cont’d)
Important information (cont’d) Disclaimer The Joint Lead Managers, together with each of their related bodies corporate, shareholders and affiliates, and each of their respective officers, directors, employees, affiliates, agents or advisers (Limited Parties) have not authorised, permitted or caused
Slide 7: Business Update
Business Update Investment Opportunity Key Risks About Megaport Financial Performance PLACEMENT & SHARE PURCHASE PLAN Business Update 7
Slide 8: Company Highlights Q3 FY20
Company Highlights Q3 FY20 +19% +9% +10% Monthly Recurring Revenue1 Total Enabled Data Centres2 Cloud On-Ramps $4.6M $5.4M 552 601 156 171 DEC 2019 MAR 2020 DEC 2019 MAR 2020 DEC 2019 MAR 2020 +6% +11% +12% Total Number of Customers Total Number of Ports Total Number of Services3 1,679 1,777 4,863 5
Slide 9: Business Update
Business Update ● Continued expansion to new markets on target: 380 installed DCs by 1 July, 2020 ● Product uptake accelerating in Q3: Q/Q Ports +11%, VXCs +14%, MCR +18% ● MRR grew 19% to $5.4M in March 2020 ● Strong cloud partnerships: 171 onramps - 15 new onramps, more integrations ● Path to prof
Slide 10: Investment Opportunity
Business Update Investment Opportunity Key Risks About Megaport Financial Performance PLACEMENT & SHARE PURCHASE PLAN Investment Opportunity 10
Slide 11: Capital Raising - Accelerating Growth
Capital Raising - Accelerating Growth Megaport is experiencing ● Capital raise: $50M Placement and up to $15M via a Share Purchase Plan significant growth and intends to ● Expansion of Sales team and go-to-market apply proceeds of the Capital activities to access greater market share Raising to furth
Slide 12: Capital Raising
Capital Raising Offer Details Indicative Timetable Fully underwritten placement to exempt investors1 to raise $50 Announcement of Capital Raising Tuesday 7 April 2020 million via the issue of 5.3 million fully paid ordinary shares (Placement). Settlement of Placement Shares Tuesday 14 April 2020 Iss
Slide 13: Use of Proceeds
Use of Proceeds A$ US$1 Cash position at Sources (million) (million) 31 Mar 2020 Offer proceeds $50 - 652 $31 - 402 TOTAL $50 - 65 $31 - 40 $108.7M ~US$66M Uses Accelerate revenue growth, sales and marketing $11 $7 Software and Product Development $9 $5 Capital Raising Network and Hosting infrastruc
Slide 14: Key Risks
Business Update Investment Opportunity Key Risks About Megaport Financial Performance PLACEMENT & SHARE PURCHASE PLAN Key Risks 14
Slide 15: Key Risks
Key Risks These risks are a summary of the key risks to Megaport, and are not an exhaustive list of all greater name recognition, longer operating history, existing market presence in similar or adjacent possible risks faced by Megaport. Shareholders could consult their stockbroker, solicitor, marke
Slide 16: Key Risks
Key Risks Funding and capital Short operating record Whilst Megaport’s business is not capital intensive in nature, the continued growth of the Company Megaport was established in 2013 and has a relatively short operational track record, and has only relies on the development of new markets, new loc
Slide 17: Key Risks
Key Risks Doing business outside of Australia Regulatory compliance Megaport currently has operations in Australia, Singapore, Hong Kong, New Zealand, Japan, Megaport is required to comply with the laws governing telecommunications and related sectors in each USA, Canada, UK, Ireland, Germany, Franc
Slide 18: Key Risks
Key Risks Credit risk of customers / counterparties Investment risks Risk of a significant credit event / insolvency of one or a group of Megaport’s major customers / Megaport shares are traded on ASX, and the price at which they trade could be affected by a range of factors counterparties that resu
Slide 19: About Megaport
Business Update Investment Opportunity Key Risks About Megaport Financial Performance PLACEMENT & SHARE PURCHASE PLAN About Megaport Appendix 19
Slide 20: Connecting the Ecosystem
Connecting the Ecosystem 98 Unique Data Megaport’s Unique 360+ Service Providers 1,777 Customers Centre Operators Value Proposition Scalable and on demand Multicloud connectivity Private and Secure Flexible Terms 20
Slide 21: The Leader in Network as a Service (NaaS)
The Leader in Network as a Service (NaaS) Megaport’s Connectivity Model Traditional Connectivity Pricing Pay for what you use, no setup fees Expensive locked-in pricing model, expensive setup costs Real-time provisioning Speed Long setup times (one week – several months) (59 seconds) Capacity Elasti
Slide 22: Selection of Major Customers
Selection of Major Customers 22
Slide 23: 1HFY20 Financial Performance
Business Update Investment Opportunity Key Risks About Megaport Financial Performance PLACEMENT & SHARE PURCHASE PLAN 1HFY20 Financial Performance Appendix 23
Slide 24: Financial Results
Financial Results 1HFY20 1HFY19 Change Consolidated Profit & Loss Financial Results $’000 $’000 % For six months ended 31 December 2019 Revenue 25,856 15,184 70% Revenue $25.9M up 70% 1 Direct network costs (12,689) (10,356) (23%) Profit after direct network costs1 of Profit after direct network cos
Slide 25: Operating Costs
Operating Costs 1HFY20 2HFY19 1HFY19 Financial Results $’000 $’000 $’000 For six months ended 31 December 2019 Direct network costs1 12,689 12,761 10,356 Average direct network cost1 per Profit after direct network costs 13,167 7,120 4,828 data centre per month is $6.9K in 1HFY20, excluding AASB163
Slide 26: Financial Position
Financial Position Dec 2019 Jun 2019 Consolidated Financial Position Financial Position $’000 $’000 At 31 December 2019 Current assets 131,718 85,134 ~$62M in equity raised in 1HFY20 Non-current assets 57,076 41,811 Capital invested in deploying to new Total assets 188,794 126,945 data centres globa
Slide 27: Financial Results Impact of AASB16 Leases
Financial Results Impact of AASB16 Leases 1HFY20 AASB161 1HFY20 1HFY19 Change Consolidated Profit & Loss Reported Adjustment Pre-AASB16 Reported % Financial Results $’000 $’000 $’000 $’000 Pre-AASB16 Revenue 25,856 - 25,856 15,184 70% For six months ended 31 December 2019 Direct network costs3 (12,6
Slide 28: Important Information
Important Information Megaport Limited ACN 607 301 959 Nothing in this presentation should be construed as either an offer to sell or a solicitation of an Direct network costs: Revenue less direct network costs, which comprise of data centre power offer to buy or sell Megaport securities in any juri
Slide 29: Thank you
Thank you ASX: MP1 Social /megaportnetworks On the Web @megaport Megaport.com/investor Megaport.com/newsroom @megaportnetwork 29