Nextdc Limited · ASX:NXT

Nextdc — Investor Presentation (April 2024)

51 slides from Nextdc's investor presentation, Apr 11, 2024

Slide 1: Entitlement Offer to Accelerate Development
ENTITLEMENT OFFER TO ACCELERATE DEVELOPMENT 11 April 2024
Slide 2: Important Disclaimer
IMPORTANT DISCLAIMER DISCLAIMER This presentation (the “Presentation”) is dated 11 April 2024 and has been prepared by NEXTDC Limited (ACN 143 582 521) (“NEXTDC”) in connection with a fully underwritten pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares (“New S
Slide 3: Important Disclaimer (cont.)
IMPORTANT DISCLAIMER (CONT.) SUMMARY INFORMATION This Presentation is for information purposes only and is a summary only. It is not a prospectus, product disclosure statement or other offering document under Australian law or any other law and will not be lodged with the Australian Securities and I
Slide 4: Important Disclaimer (cont.)
IMPORTANT DISCLAIMER (CONT.) Investors should not place undue reliance on such forward-looking statements, especially in view of the current and challenging economic, market, climate, supply chain and other uncertainty and disruption, including the conflicts in Ukraine and the Middle East. Neither N
Slide 5: Important Disclaimer (cont.)
IMPORTANT DISCLAIMER (CONT.) This Presentation also contains pro-forma historical financial information to show the impact of the Entitlement Offer. The pro-forma information has not been audited or reviewed by NEXTDC’s auditors. The pro-forma financial information provided in this Presentation is f
Slide 6: Contents
CONTENTS 7 9 19 22 28 38 42 48 Summary Accelerated Entitlement Appendix A Appendix B Appendix C Appendix D Appendix E Development Offer Details Selected Site Key Risks Summary of International Glossary Overviews Underwriting Offer Agreement Restrictions NEXTDC © Copyright 2024 | 2024 Entitlement Off
Slide 8: Summary
SUMMARY Unprecedented growth in customer demand, as highlighted by NEXTDC’s record forward order book of 68.8MW 1,2, Demand which the Company projects will convert into billings across FY25 to FY29, driving future growth in revenues and Dynamics earnings NEXTDC is today launching a fully underwritte
Slide 10: Opportunity for NEXTDC
OPPORTUNITY FOR NEXTDC ▪ Growth in global data volume and migration to cloud have driven data centre market growth over the last decade Compelling ▪ These demand drivers continue to remain robust and are forecast to grow over the medium-term, supporting industry Fundamentals fundamentals Emerging ▪
Slide 11: Digitisation and cloud migration megatrends have historically supported industry fundamentals
DIGITISATION AND CLOUD MIGRATION MEGATRENDS HAVE HISTORICALLY SUPPORTED INDUSTRY FUNDAMENTALS… Global Data Volume (Zettabytes)1 Public Cloud Services Market (US$ billion)2 Consumer Enterprise 291 69 1,340 106 222 553 42 64 2022A 2027E 2022A 2027E ▪ Global data volume growth and migration to cloud ha
Slide 12: AI is now shaping up to be the next megatrend
AI IS NOW SHAPING UP TO BE THE NEXT MEGATREND… Mainframe Client / Server Cloud / Mobile AI / Large Language Models 100’s of 1,000’s of users Millions of users Billions of users 10s of billions of connected people, devices and applications Pioneers Pioneers Pioneers Pioneers AI is expected to be the
Slide 13: Unprecedented adoption speed and amplified power requirements
…DEMONSTRATING UNPRECEDENTED ADOPTION SPEED AND AMPLIFIED POWER REQUIREMENTS… Time to Reach 100 Million Users1 Average Power Density (kW / Rack)2 ChatGPT 2 months TikTok 9 months 2.5x Instagram 30 months Snapchat 44 months ~80 – 100kW YouTube 49 months Facebook 54 months ~36kW Pinterest 71 months Pr
Slide 14: Driving unprecedented growth in global demand for data centre capacity
…DRIVING UNPRECEDENTED GROWTH IN GLOBAL DEMAND FOR DATA CENTRE CAPACITY Global Data Centre Market (MW)1 Historically, the global data centre market has grown at a 15% CAGR Emergence of AI megatrend and the pace (2017A – 2023A) supported by digitisation and cloud migration mega trends of adoption is
Slide 15: NEXTDC's forward order book is now at record highs
NEXTDC’S FORWARD ORDER BOOK IS NOW AT RECORD HIGHS Forward Order Book1 69MW 45MW 14MW 10MW 10MW 10MW 8MW 12/20A 6/21A 12/21A 6/22A 12/22A 6/23A 12/23A NEXTDC’s forward order book is at a record high of 68.8MW1,2 as at 31 December 2023 1. Forward order book represents the difference between contracte
Slide 16: Contracted utilisation has stepped up and now exceeds built capacity
NEXTDC’S CONTRACTED UTILISATION HAS STEPPED UP AND NOW EXCEEDS BUILT CAPACITY Built Capacity1 and Contracted Utilisation2 Built Capacity (MW) Contracted Utilisation (% built) 106% 92% 82% 73% 65% 79% 80% 141 129 133 114 96 99 89 12/20A 6/21A 12/21A 6/22A 12/22A 6/23A 12/23A ▪ NEXTDC’s contracted uti
Slide 17: NEXTDC is raising A$1,321 million to accelerate capacity expansion
NEXTDC IS RAISING A$1,321 MILLION TO ACCELERATE CAPACITY EXPANSION TO MEET INCREASED DEMAND Entitlement Offer of A$1,321 million to largely fund the accelerated development and fitout in core Sydney and Melbourne markets to support unprecedented customer demand Sources A$ million ▪ S3 Sydney: accele
Slide 18: Pro-forma balance sheet summary
PRO-FORMA BALANCE SHEET SUMMARY A$ million 31 Dec 2023 Entitlement 31 Dec 2023 (Statutory) Offer1 (Pro-forma) ▪ On a pro-forma basis, NEXTDC will have a Cash and cash equivalents 589 1,296 1,885 tangible asset backing of ~A$5.1 billion, underpinned by high quality data centres in prime Property, pla
Slide 20: Entitlement Offer Summary
ENTITLEMENT OFFER SUMMARY Offer Size ▪ 1 for 6 pro-rata accelerated non-renounceable entitlement offer to raise A$1,321 million & Structure ▪ ~85.8 million New Shares to be issued under the Entitlement Offer, equivalent to 16.7% of Existing Shares on issue ▪ Offer Price of A$15.40 per New Share repr
Slide 21: Entitlement Offer Timetable
ENTITLEMENT OFFER TIMETABLE Event Date1 Trading halt and announcement of Entitlement Offer Thursday, 11 April 2024 Announcement of results of Institutional Entitlement Offer Monday, 15 April 2024 Trading halt lifted and NEXTDC shares recommence trading Monday, 15 April 2024 Entitlement Offer Record
Slide 23: Regional Data Centre Platform
REGIONAL DATA CENTRE PLATFORM TK1 Tokyo ▪ A rapidly growing portfolio of operational data centres and development projects across the APAC region. Bangkok BK1 ▪ NEXTDC anticipates entering the new Kuala Lumpur markets of Tokyo (Japan) and KL1 Bangkok (Thailand) in the near-term SG1 Singapore Guam ▪
Slide 24: S3 Sydney
S3 SYDNEY TECHNICAL SPECIFICATIONS Technical Space 20,000sqm+ Total IT Capacity 80MW Built Capacity 20MW plus 30MW in progress Target PUE 1.151 / 1.292 UI Tier IV Design Design & Construction UI Tier IV Constructed Facility Standard UI Tier IV Gold for Operational Sustainability Status Operational ▪
Slide 25: S4 Sydney
Artist’s impression only S4 SYDNEY TECHNICAL SPECIFICATIONS1 Land Area ~124,000sqm Target IT Capacity ~300MW+ Target Built Capacity 10MW for Stage 1 Development FY25+ Commencement Status Design & Town Planning ▪ S1, S2, S3, S4, S5 and S6 Sydney metropolitan campus will be interconnected via Data Cen
Slide 26: S5 Sydney
S5 SYDNEY TECHNICAL SPECIFICATIONS1 Land Area ~22,600sqm Technical Space ~16,000sqm Target IT Capacity ~60MW+ n/a - Stage 1 building works Built Capacity only UI Tier IV Design and Construct Design & Construction UI Tier IV Constructed Facility Standard UI Tier IV Gold for Operational Sustainability
Slide 27: M2 Melbourne
M2 MELBOURNE TECHNICAL SPECIFICATIONS Technical Space 25,000sqm+ Target IT Capacity 100MW Built Capacity 28MW plus 32MW in progress Target PUE 1.101 / 1.282 UI Tier IV Design Design & Construction UI Tier IV Constructed Facility Standard UI Tier IV Gold for Operational Sustainability Status Operatio
Slide 29: Key Risks
KEY RISKS This section discusses some of the key risks associated with an investment in NEXTDC, together with risks relating to participation in the Entitlement Offer, which may affect the value and performance of NEXTDC shares. The below risks should not be taken as a complete list of the risks ass
Slide 30: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC is involved in the development of data centres. Generally, development projects, including S4 and S5, have a number of key risks including: (i) the risk that suitable sites or required planning consents, access to power and regulatory approvals are not obtained or, if obtain
Slide 31: Key Risks (cont.)
KEY RISKS (CONT.) One of the keys to the success of NEXTDC’s business is its ability to retain and grow existing customer relationships and develop new customer relationships. There is no guarantee that these relationships will continue or, if they do continue, that these relationships will be succe
Slide 32: Key Risks (cont.)
KEY RISKS (CONT.) Loss of Key NEXTDC depends on the talent and experience of its staff and employees. It is essential that appropriately skilled staff be available in sufficient numbers to Management support NEXTDC’s business. While NEXTDC has initiatives in place to mitigate the risk of its key sta
Slide 33: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC’s business involves the cloud hosting and storage of information, including confidential and proprietary data of organisations and personal information of individuals. Advances in technological capabilities and tools and methods used by hackers and cyber terrorists may resul
Slide 34: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC continues to evaluate a range of growth driven initiatives, which may include the acquisition of new data centre sites or business acquisitions or investments both domestically and internationally. There can be no assurances that NEXTDC will identify suitable future acquisit
Slide 35: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC may in the ordinary course of business become involved in litigation, arbitration and disputes, for example with its suppliers, clients or other Adverse contractual counterparties. Such disputes may relate to, but are not limited to, contractual disputes, indemnity claims, e
Slide 36: Key Risks (cont.)
KEY RISKS (CONT.) NEXTDC may, in the future, require additional debt or equity in order to fund growth strategies and/or to refinance its existing debt obligations. NEXTDC may be unable to access debt or equity funding on commercially acceptable terms, or at all, in the future. Ability to Access Any
Slide 37: Key Risks (cont.)
KEY RISKS (CONT.) As inflation continues to remain elevated, this may result in unmitigated increases in the prices of key elements of NEXTDC’s supply chain, including critical Adverse Inflation capital equipment and/or labour costs. NEXTDC has a large development pipeline with material capital expe
Slide 38: Appendix C: Summary of Underwriting Agreement
APPENDIX C SUMMARY OF UNDERWRITING AGREEMENT NEXTDC © Copyright 2024 2023 | 2024 Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 38
Slide 39: Summary of Underwriting Agreement
SUMMARY OF UNDERWRITING AGREEMENT NEXTDC has entered into an underwriting agreement with the Joint Lead Managers pursuant to which the Joint Lead Managers have been appointed as joint lead managers, bookrunners and underwriters of this Entitlement Offer (“Underwriting Agreement”). The Underwriting A
Slide 40: Summary of Underwriting Agreement (cont.)
SUMMARY OF UNDERWRITING AGREEMENT (CONT.) ▪ NEXTDC or any of its directors or the Chief Executive Officer or Chief Financial Officer engages in any fraudulent conduct or activity whether or not in connection with the Entitlement Offer; ▪ a change occurs to the Chief Executive Officer or Chief Financ
Slide 41: Summary of Underwriting Agreement (cont.)
SUMMARY OF UNDERWRITING AGREEMENT (CONT.) ▪ any adverse change or disruption occurs to the existing financial markets, political or economic conditions of Australia, the United States, the United Kingdom or Hong Kong, or there is any change or development involving a prospective change in national o
Slide 42: Appendix D: International Offer Restrictions
APPENDIX D INTERNATIONAL OFFER RESTRICTIONS NEXTDC © Copyright 2022 NEXTDC © Copyright 2024 | 2024 Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 42
Slide 43: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of New Shares of the Company 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 be offered or sold, in any country outside Austral
Slide 44: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) Any financial information contained in this document has been prepared in accordance with Australian Accounting Standards and also comply with International Financial Reporting Standards and interpretations issued by the International Accounting Standards Boa
Slide 45: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsewhere that is directed at, or the contents of which are likely
Slide 46: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) Norway This document has not been approved by, or registered with, any Norwegian securities regulator under the Norwegian Securities Trading Act of 29 June 2007 no. 75. Accordingly, this document shall not be deemed to constitute an offer to the public in Nor
Slide 47: International Offer Restrictions (cont.)
INTERNATIONAL OFFER RESTRICTIONS (CONT.) United Arab Emirates This document does not constitute a public offer of securities in the United Arab Emirates and the New Shares may not be offered or sold, directly or indirectly, to the public in the UAE. Neither this document nor the New Shares have been
Slide 49: Glossary
GLOSSARY The arranging for payment of the relevant Application Monies through Bpay® in accordance with Institutional The pro-rata accelerated non-renounceable entitlement offer to Eligible Institutional Shareholders Application the instructions on the Entitlement and Acceptance Form or the submissio
Slide 50: NEXTDC Investor Relations
NEXTDC INVESTOR RELATIONS investorrelations@nextdc.com 13 63 98 linkedin.com/company/nextdc twitter.com/nextdc facebook.com/datacentres youtube.com/user/nextdatacentre www.nextdc.com/blog NEXTDC © Copyright 2024 | 2024 Entitlement Offer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 50
Slide 51: Where A.I. Thrives
-agsQpo-; pgs! Where A.|. Thrives™

NEXTDC — Investor Presentation (April 2024) on 6ix

Nextdc — Investor Presentation (April 2024)

Slide 1: Entitlement Offer to Accelerate Development

Slide 2: Important Disclaimer

Slide 3: Important Disclaimer (cont.)

Slide 4: Important Disclaimer (cont.)

Slide 5: Important Disclaimer (cont.)

Slide 6: Contents

Slide 7: Summary

Slide 8: Summary

Slide 9: Accelerated Development

Slide 10: Opportunity for NEXTDC

Slide 11: Digitisation and cloud migration megatrends have historically supported industry fundamentals

Slide 12: AI is now shaping up to be the next megatrend

Slide 13: Unprecedented adoption speed and amplified power requirements

Slide 14: Driving unprecedented growth in global demand for data centre capacity

Slide 15: NEXTDC's forward order book is now at record highs

Slide 16: Contracted utilisation has stepped up and now exceeds built capacity

Slide 17: NEXTDC is raising A$1,321 million to accelerate capacity expansion

Slide 18: Pro-forma balance sheet summary

Slide 19: Entitlement Offer Details

Slide 20: Entitlement Offer Summary

Slide 21: Entitlement Offer Timetable

Slide 22: Appendix A: Selected Site Overviews

Slide 23: Regional Data Centre Platform

Slide 24: S3 Sydney

Slide 25: S4 Sydney

Slide 26: S5 Sydney

Slide 27: M2 Melbourne

Slide 28: Appendix B: Key Risks

Slide 29: Key Risks

Slide 30: Key Risks (cont.)

Slide 31: Key Risks (cont.)

Slide 32: Key Risks (cont.)

Slide 33: Key Risks (cont.)

Slide 34: Key Risks (cont.)

Slide 35: Key Risks (cont.)

Slide 36: Key Risks (cont.)

Slide 37: Key Risks (cont.)

Slide 38: Appendix C: Summary of Underwriting Agreement

Slide 39: Summary of Underwriting Agreement

Slide 40: Summary of Underwriting Agreement (cont.)

Slide 41: Summary of Underwriting Agreement (cont.)

Slide 42: Appendix D: International Offer Restrictions

Slide 43: International Offer Restrictions

Slide 44: International Offer Restrictions (cont.)

Slide 45: International Offer Restrictions (cont.)

Slide 46: International Offer Restrictions (cont.)

Slide 47: International Offer Restrictions (cont.)

Slide 48: Appendix E: Glossary

Slide 49: Glossary

Slide 50: NEXTDC Investor Relations

Slide 51: Where A.I. Thrives