Slide 1: FY22 Full Year Results
Superloop Limited (ASX:SLC) FY22 Full Year Results 26 August 2022 1
Slide 2: Disclaimer
Disclaimer No reliance No offer to acquire Superloop shares To the maximum extent permitted by law, the information contained in this The information in this presentation is not an offer or recommendation to purchase or presentation is given without any liability whatsoever being accepted by Superlo
Slide 3: FY22 Highlights
FY22 Highlights Revenue 1 EBITDA Strong cash Strategy Outlook Growth Growth position Reached halfway Strong momentum Underlying EBITDA2 84% cashflow point in 3-year $262.5m 37% to $25.4m conversion3 turnaround plan. in customer growth, Q1 FY23 on track for Exceeds $23m - 137% $25m guidance Net cash
Slide 4: Revenue
Revenue Total Revenue1 Consumer Business Wholesale $262.5m $130.9m $80.5m $38.3m $151.8m | 137% $96.1m | 276% $51.1m | 175% $6.6m | 21% FY21: $110.7m FY21: $34.8m FY21: $29.3m FY21: $31.7m Strong revenue growth driven by Exetel acquisition, 41%2 organic subscriber growth and, 17%3 organic revenue gr
Slide 5: Underlying EBITDA and Gross Margin
Underlying EBITDA1 and Gross Margin (GM) Underlying EBITDA1 Consumer Business Wholesale $25.4m $30.7m GM $25.3m GM $25.5m GM $6.8m | 37% $21.1m | 220% $13.1m | 108% $4.4m | 21% FY21: $18.6m FY21: $9.6m GM FY21: $12.1m GM FY21: $21.1m GM Exceeded full year underlying EBITDA guidance range of $23m-$25
Slide 6: Cash
Cash Normalised Operating Normalised Cash Net Cash Cash Flow Conversion $21.2m 84.4% $42.8m 1 2 3 $6.1m | 40.4% 3.2% $7.5m FY21: $15.1m FY21: 81.2% FY21: $35.3m On market share buyback announced, well positioned to deploy capital prudently on M&A (1) (2) Normalised operating cash flow represents ope
Slide 7: Strategic Delivery
Strategic Delivery Strategic Objectives FY22 Achievements FY23 Focus Deeper embedding of new accelerated ‣ Improve margins toward target levels growth strategy through scale and accelerated growth Fuel challenger providers towards 30% collective market share Repositioned business to address thre
Slide 8: Acquisition update
Acquisition update ▶ Completed the $110m acquisition of Exetel on 31 July 2021, ▶ Completed late June 2022 adding in excess of 110,000 new consumer and business ▶ $15m up front ($12m cash, $3m in Superloop shares). customers Additional $20m of earn outs, capped, subject to ▶ Contributed $133m revenu
Slide 9: Consumer
Consumer ‣ 17,621 organic net subscriber growth in FY22 166,131 ‣ Revenues from 24,400 mobile and 35,360 Segment result FY22 FY21 Total home VOIP customers were approximately broadband subscribers 4% of the Consumer total revenue Revenue $130.9m $34.8m ‣ Cost to serve has fallen by 10% year on year
Slide 10: Business
Business ‣ FY22 result includes Exetel’s small and Business 1HFY22 vs 2HFY22 medium sub segments augmenting existing large customer focus 32.4% GM ‣ SD WAN & SASE products launched 30.1% GM 44.8 in partnership with Palo Alto 35.7 ‣ Managed Wi-Fi Business experiencing pre-COVID 10.8 14.5 student acco
Slide 11: Wholesale
Wholesale Major white Label Customers ‣ Superloop Connect platform launched • Significant expansion in addressable market September 2021 - growing quickly through addition of white label capability with Acurus acquisition ‣ 20.6k broadband aggregation customers as at 30 June 2022. • White labelling
Slide 12: Total subscribers
Total subscribers Superloop Total Subscribers % Share of Subscribers, 30 June 2021 2.0% 1.2 20.8 Market Share of Consumer NBN Subscribers, up from 9.7 17.4 0.5% in March 2021 16.6 166.1 Consumer 154.7 Business 98.8 Wholesale 20.6k Growth in Wholesale % Share of Subscribers, 30 June 2022 Aggregation
Slide 13: Financial Performance
@ superloop Financial Performance
Slide 14: Revenue Growth
Revenue Growth Consumer Revenue ($m) Business Revenue1 ($m) Wholesale Revenue2 ($m) Half Year Full Year Half Year Full Year Half Year Full Year 137.1% 130.9 80.5 77.3 55.8 21% Increase in Group Revenue 276% 175% 38.3 driven by Exetel Acquisition 31.7 42.2 30.3 16.8% 3 35.1 20.3 Organic Revenue 25.5
Slide 15: Gross margin FY22 vs. FY21
Gross margin FY22 vs. FY21 A$m 71.8% 89.7 8.2 17.3 Gross margin increase driven by Exetel acquisition 25.5 17.9 4.4 54.5 52.2 3.2 34.2% (1.2) 8.2 9.4 (1.7) (2.5) 25.3 Gross Margin 25.5 21.1 32.7% excluding discontinued operations 9.8 12.2 30.7 9.6 12.8 Even spread of Gross Gross Margin CMS (1) Consu
Slide 16: Underlying EBITDA FY22 vs. FY21
Underlying EBITDA FY22 vs. FY21 A$m 36.6% 4.0 6.0 Increase in Underlying EBITDA(1) 13.1 1.7 2.5 25.4 76.4% Increase in underlying 18.6 14.4 EBITDA(1) excluding Job Keeper and CMS business Underlying EBITDA Discontinued CMS Job Keeper Re-Based EBITDA Growth Exetel Synergies Additional Underlying EBIT
Slide 17: NPAT performance
NPAT performance Strong revenue and $M FY22 FY21 % Change EBITDA increase driven Revenue 262.5 110.7 137.1% by Exetel acquisition Cost of Goods Sold (172.8) (58.5) (195.4%) Gross Margin 89.7 52.2 71.8% Operating Expenses (64.2) (33.6) (91.1%) Sale of Hong Kong & select Singapore assets above Underly
Slide 18: Consumer marketing efficiency
Consumer marketing efficiency Gross Subscriber Additions FY22 FY22 marketing spend of 8,000 ~$8m, up $6m relative to FY21 Estimated 7-8 months to recover initial marketing investment 4,000 Assumed churn rate at around industry averages Estimated 16.5% return Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr M
Slide 19: FY22 Normalised Operating Cashflow
FY22 Normalised Operating Cashflow (A$m) FY22 Statutory FY22 Operating Cashflow (including Discontinued Operations) Add Back (11.5) 84.4% Operating Cash Conversion Transaction Costs 7.5 Exetel Income Tax Payment 3.4 Movement in Working Capital – Exetel Acquisition Related 4.9 30 June FY21 Trade Cred
Slide 20: Balance sheet
Balance sheet Strong Cash Position reflecting disposal of Hong Kong and Singapore Balance Sheet ($M) 30 June 2022 30 June 2021 Cash & cash equivalents (excluding held for sale) 83.1 89.7 Decline in value of PPE Property, plant & equipment 127.3 219.4 reflects disposal of Hong Kong and Singapore Asse
Slide 21: Capital management
Capital management ‣ Sale of the Hong Kong and Singapore assets realised approximately $125m in FY22 (net of transaction costs) Well positioned to fund ‣ Maintain Bank debt facility of $96.9m maturing June 2024 growth and return cash to shareholders ‣ Pro Forma FY21 Net Debt of $37m, i.e. had Exetel
Slide 22: FY23 EBITDA considerations
FY23 EBITDA considerations ‣ Acurus acquisition + expected to contribute $2.5m in EBITDA in FY23 ‣ Annualised benefit of $6m of Exetel synergies ‣ Profitable organic sales and revenue growth ‣ No further contribution ‣ $5m increase in ‣ Change in accounting - from discontinued operations marketing s
Slide 23: Outlook
superloop Outlook
Slide 24: Looking forward
Looking forward Strong momentum in customer Continued benefit from growth, Q1 FY23 on track for record synergies in Acurus and customer additions Exetel acquisitions Continued investment in customer Strong balance sheet provides acquisition via additional marketing flexibility for buyback, disciplin
Slide 25: Appendices
@ superloop Appendices
Slide 26: Our business
Our business Integrated provider ~ 200,000 Connected across all Australian major data centres and the of connectivity services Customers connected to high-quality in Australia fibre networks predominantly in Australia 121 nbn™ POIs 5 Tbps > 1m Subscriber Providing high-quality residential and busine
Slide 27: Fibre network map
Fibre network map SAN JOSE LOS ANGELES TOKYO On-Net data centres /buildings 466 TO MARSEILLE in Australia / worldwide HONG KONG Indigo capacity available >5 Tbps for sale On a nightly basis the growth 25-350 GBS SINGAPORE since 2018 has been 10 fold >100,000 Network route kilometres 305 Fixed Wirele
Slide 28: Segment financials FY22 vs. FY21
Segment financials FY22 vs. FY21 FY21 FY22 First Half Second Half First Half Second Half FY21 FY22 Consumer 14.7 19.9 59.3 71.6 34.8 130.9 Business 15.9 13.4 35.7 44.8 29.3 80.5 Revenue Wholesale 16.0 16.1 18.0 20.3 31.7 38.3 Discontinued 6.7 8.1 6.8 6.0 14.8 12.8 Total 53.3 57.5 119.8 142.7 110.7 2
Slide 29: FY22 underlying EBITDA reconciliation
FY22 underlying EBITDA reconciliation $k Consumer Business Wholesale TOTAL Discontinued TOTAL Revenue 130.9 80.5 38.3 249.7 12.8 262.5 Cost of Goods Sold (100.1) (55.2) (12.8) (168.1) (4.6) (172.7) Gross Margin 30.7 25.3 25.5 81.5 8.2 89.7 Operating Expenses - - - (61.1) (3.3) (64.2) Underlying EBIT
Slide 30: Thank you
Thank you Superloop Limited investor@superloop.com https://investors.superloop.com 30