Time Dotcom Bhd. · MYX:TIMECOM
Time Dotcom Bhd — Merger or Acquisition (November 2022)
25 slides from Time Dotcom Bhd's merger presentation, Nov 22, 2022
Slide 1: Supercharging AIMS to grow across Asia: Time partners DigitalBridge
SUPERCHARGiNG AIMS TO GROW ACROSS ASiA: TiME PARTNERS DiGiTALBRiDGE 22 November 2022
Slide 2: Disclaimer
DISCLAIMER This presentation and the discussion following may contain forward looking statements by TIME dotCom Berhad (“Time”) related to financial, market or industry trends for a future period. These forward-looking statements involve known and unknown risks and uncertainties which may cause the
Slide 3: Introduction
INTRODUCTiON TIME 3
Slide 4: Introduction
Introduction Strategic Partnership for AIMS Regional Expansion Time is pleased to announce a strategic partnership with DigitalBridge to boost the regional expansion of its AIMS data centre business • AIMS, a wholly-owned subsidiary of Time, is Malaysia’s leading highly connected, ecosystem-centric
Slide 5: Summary partnership terms
Summary partnership terms Strategic Partnership for AIMS Regional Expansion Key terms Summary DigitalBridge acquires stakes in AIMS HoldCo (Malaysia and Partnership Structure Singapore) and AIMS Thailand Valuation RM3.2 billion (100% enterprise value) Proceeds to Time Approx. RM2.0 billion(1) (1) Sp
Slide 6: The strategic rationale
THE STRATEGiC RATiONALE TIME 6
Slide 7: Overview and history of AIMS
Overview and history of AIMS Strategic Partnership for AIMS Regional Expansion AIMS has grown significantly since its inception, and in particular since its acquisition by Time in 2012 AIMS standalone AIMS part of Time Group 1990 2000 2006 2012 2019 2020 2021 2022 Incorporation Refocusing of MBO of
Slide 8: Strong and growing addressable market opportunity for AIMS
Strong and growing addressable market opportunity for AIMS Strategic Partnership for AIMS Regional Expansion Data centre demand across ASEAN is expected to remain strong Key drivers: • Cloud adoption (public and private) • Edge nodes moving closer to the end-user • Continued growth in data exchange
Slide 9: The strategic rationale for the partnership
The strategic rationale for the partnership Strategic Partnership for AIMS Regional Expansion Based on the strategic review carried out, Time believes there are significant opportunities in under-served markets across ASEAN and beyond, particularly in the highly connected, ecosystem-centric data cen
Slide 10: Overview of DigitalBridge
Overview of DigitalBridge Strategic Partnership for AIMS Regional Expansion Who is DigitalBridge • One of the world’s largest digital infrastructure firms investing across five key digital infrastructure verticals: data centres, macro cell towers, fibre networks, small cells, and edge infrastructure
Slide 11: Supercharging AIMS
Supercharging AIMS Strategic Partnership for AIMS Regional Expansion What Time and DigitalBridge intend to do together: • Bring together a unique combination of two entities with distinctly different backgrounds – a focused telecoms and data centre operator with assets across ASEAN, and a digital in
Slide 12: Continued commitment by Time to AIMS
Continued commitment by Time to AIMS Strategic Partnership for AIMS Regional Expansion Time continues to be committed to the data centre business • Time will continue to have data centre products available for its customers, offered in a seamless and integrated manner • Time will retain significant
Slide 13: Transaction structure and use of proceeds
TRANSACTiON STRUCTURE AND USE OF PROCEEDS TIME 13
Slide 14: Transaction structure overview
Strategic Partnership for AIMS Regional Expansion Transaction structure overview DigitalBridge will acquire shareholdings in AIMS HoldCo and AIMS Thailand based on a 100% enterprise valuation of RM3.2 billion • Acquisition of 490,000 ordinary shares and 699,850 irredeemable convertible preference sh
Slide 15: Shareholding overview
Strategic Partnership for AIMS Regional Expansion Shareholding overview Current Shareholding (AIMS HoldCo) Shareholding Post Transaction (AIMS HoldCo) Time Time DigitalBridge 100% OS: 51% OS: 49% ICPS: 0% ICPS: 100% AIMS HoldCo AIMS HoldCo 100% 100% 100% 100% 100% 100% AIMS Data AIMS AIMS AIMS Data
Slide 16: Attractive valuation secured for AIMS
Strategic Partnership for AIMS Regional Expansion Attractive valuation secured for AIMS Valuation for AIMS business is attractive and also compares favourably to the current book value of RM240 million and the original TIME acquisition cost of AIMS in 2012 of RM119 million 100% Enterprise Valuation
Slide 17: Timing and utilisation of proceeds
Timing and utilisation of proceeds Strategic Partnership for AIMS Regional Expansion The AIMS HoldCo and AIMS Thailand transactions are expected to close before the end of Q2 FY23, subject to certain conditions precedent (incl. Time shareholder approval) being satisfied at or prior to closing Time e
Slide 18: Powering Time's other segments
POWERiNG TiME’S OTHER SEGMENTS TIME 18
Slide 19: AIMS in the context of Time
AIMS in the context of Time Strategic Partnership for AIMS Regional Expansion AIMS is a strategically important part of Time, although its financial contribution to the Group is relatively modest Time Group Revenue (FY21) Time Group PAT (FY21) 9.5% 13.0% 87.0% 90.5% AIMS Rest of Time Group TIME Note
Slide 20: Time pro forma growth
Time pro forma growth Strategic Partnership for AIMS Regional Expansion Time Group growth is historically not impacted by the exclusion of AIMS Revenue (RM million) Adjusted EBITDA (RM million) +14% 1,396 +14% 1,223 1,214 1,069 +14% +14% 673 590 587 515 TIME TIME ex-AIMS TIME TIME ex-AIMS FY20 FY21
Slide 21: Time segment growth
Time segment growth Strategic Partnership for AIMS Regional Expansion Time has benefitted from strong growth momentum in its 3 core market segments, even after adjusting for AIMS Proceeds from the transaction will be utilised to continue investing in these core market segments Revenue CAGR (2018 – 2
Slide 22: Conclusion
CONCLUSiON TIME 22
Slide 23: Conclusion
Conclusion Strategic Partnership for AIMS Regional Expansion This is a financially and strategically solid move – it enables Time to expand the AIMS data centre business regionally with a strong partner and in a value-accretive and financially prudent manner • Time is committed to being in the data
Slide 24: Any questions?
ANY QUESTiONS? TIME 24
Slide 25: Thank you
THANK YOU TIME 25
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