Megaport Ltd. · ASX:MP1
Megaport — Investor Presentation (December 2019)
27 slides from Megaport's investor presentation, Dec 5, 2019
Slide 1: ASX cover letter - Share Placement
5 December 2019 For personal use only Listings Compliance ASX Compliance Pty Ltd Megaport Limited - Share Placement Attached is a copy of an investor presentation titled “Share Placement” lodged by Megaport Limited ACN 607 301 959 (ASX: MP1) (Megaport). The attached presentation is authorised by the
Slide 2: Share Placement
For personal use only Share Placement DECEMBER 5, 2019 Not for release to US wire services or distribution in the United States Megaport Limited | ACN 607 301 959 | ASX: MP1
Slide 3: Important information
Important information This presentation has been prepared by Megaport Limited (ACN 607 301 959) (Megaport or No offer to acquire Megaport shares Company) in connection with an institutional placement of new fully paid ordinary shares in Megaport The information in this presentation is not an offer o
Slide 4: Important information (cont'd)
Important information (cont’d) Hong Kong This presentation has been given to you on the basis that you are (i) an existing holder of the WARNING: This presentation has not been, and will not be, registered as a prospectus under the Company’s shares, (ii) an "institutional investor" (as defined in th
Slide 5: Important information (cont'd)
Important information (cont’d) United Kingdom No offer of invitation to subscribe for Securities is valid, or permitted from any person, in the Abu Neither the information in this presentation nor any other document relating to the Placement has been Dhabi Global Market or the Dubai International Fi
Slide 6: Investment Opportunity
Investment Opportunity Key Risks About Megaport Financial Performance For personal use only SHARE PLACEMENT Investment Opportunity 5
Slide 7: The Opportunity
The Opportunity Megaport is a leading global Interconnection Platform that: For personal use only ● Enables Network-as-a-Service: on-demand, elastic, self-serve interconnection aligned to cloud consumption models ● Simplifies real-world networking problems and unlocks next generation IT use cases li
Slide 8: Capital Raising - Accelerating Growth
Capital Raising - Accelerating Growth Consolidating and accelerating first mover advantage: For personal use only ● Accelerate expansion of markets within North America, Europe and Asia Pacific as well as new markets such as recently announced Japan. Growing from 21 countries to 30 over the next 18
Slide 9: Placement Details
Placement Details Placement Details Indicative Timetable 1 2019 For personal use only Trading Halt and Thursday 5 December Fully underwritten institutional placement to raise Announcement of Placement approximately $62 million via the issue of 7.1 million fully paid ordinary shares (Placement). Trad
Slide 10: Use of Proceeds
Use of Proceeds A$ US$1 For personal use only Source of funds (million) (million) Cash position at Cash on hand $66 $45 31 October 2019 Placement proceeds (net of fees) $60 $41 $65.6M TOTAL $126 $86 Use of Funds Capital Expenditure to 30-Jun-22 ~US$44.5M New locations, new markets & capacity upgrade
Slide 11: Outlook
Outlook ● Megaport’s investment in its sales, growing data centre footprint and integration with more cloud For personal use only onramps position the business for growth. ● Further investment into technology, like Megaport Cloud Router, provide an opportunity to build on the strong momentum to furt
Slide 12: Key Risks
Investment Opportunity Key Risks About Megaport Financial Performance For personal use only SHARE PLACEMENT Key Risks 11
Slide 13: Key Risks
Key Risks These risks are a summary of the key risks to Megaport, and are not an exhaustive list of all Competitive landscape and action of others For personal use only possible risks faced by Megaport. Shareholders could consult their stockbroker, solicitor, Megaport operates in a competitive lands
Slide 14: Key Risks
Key Risks Protection of intellectual property Megaport’s ability to meet these needs while controlling costs associated with hiring and training new For personal use only employees is subject to external factors such as unemployment rates, prevailing wage legislation and Megaport’s ability to levera
Slide 15: Key Risks
Key Risks Interruptions to operations, including infrastructure, and technology failure Counterparty obligations For personal use only Megaport could be exposed to short-, medium- or long-term interruptions to its operations as it Megaport relies on third parties, such as customers, suppliers, landl
Slide 16: Key Risks
Key Risks Regulatory compliance Macroeconomic risks For personal use only Megaport is required to comply with the laws governing telecommunications and related sectors in Megaport’s operational and financial performance is affected by the Australian and other international each jurisdiction in which
Slide 17: Appendix: About Megaport
Investment Opportunity Key Risks About Megaport Financial Performance For personal use only SHARE PLACEMENT Appendix About Megaport 16
Slide 18: Industry Growth Trends
Industry Growth Trends For personal use only Enterprise Cloud Service Spend ($B) Enterprise Cloud Strategy 1000+ Employees 9% Multiple Private 17% Multiple Public Single Public 10% Multicloud 84% Single Private 3% 3% 58% Hybrid Cloud No Plans Total of: BPaaS, PaaS, SaaS, Cloud Management & Security
Slide 19: Who is Megaport?
Who is Megaport? For personal use only Pay for what you use Ease of use Secure and on-demand Leading service providers Who we connect Enterprises Cloud service providers Data centre operators Network service providers 18
Slide 20: The Leader in Network as a Service (NaaS)
The Leader in Network as a Service (NaaS) For personal use only Megaport’s Connectivity Model Traditional Connectivity Pricing Pay for what you use, no setup fees Expensive locked-in pricing model, expensive setup costs Speed Real-time provisioning (59 seconds) Long setup times (one week – several m
Slide 21: Connectivity Ecosystem
Connectivity Ecosystem For personal use only 90 Unique Data Megaport’s Unique 346+ Service Providers 1,584+ Customers Centre Operators Value Proposition Scalable and on demand Multicloud connectivity Private and Secure Flexible Terms 20
Slide 22: Appendix: FY19 Financial Performance
Investment Opportunity Key Risks About Megaport Financial Performance For personal use only SHARE PLACEMENT Appendix FY19 Financial Performance 21
Slide 23: Financial Results
ANNUAL RESULTS FY19 Financial Results FY19 FY18 For personal use only Consolidated Profit & Loss $’000 $’000 Financial Results For year ended 30 June 2019 Revenue 35,065 19,753 Direct network costs 1 (23,117) (15,264) Revenue $35.1M up 78% Profit after direct network costs 1 11,948 4,489 Profit afte
Slide 24: Operating Costs
ANNUAL RESULTS FY19 Operating Costs For personal use only FY19 FY18 Financial Results $’000 $’000 For year ended 30 June 2019 Direct network costs 23,117 15,264 Average direct network cost 1 per Profit after direct network costs 1 11,948 4,489 data centre per month is $7.4K in FY19 (up 3% compared t
Slide 25: Financial Position
ANNUAL RESULTS FY19 Financial Position For personal use only 30 June 2019 30 June 2018 Consolidated Financial Position Financial Results $’000 $’000 For year ended 30 June 2019 Current assets 85,134 61,355 $60M in equity raised in 2H FY19 Non-current assets 41,811 30,802 Total assets 126,945 92,157
Slide 26: Important Information
Important Information For personal use only 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
Slide 27: Thank you
For personal use only Thank you ASX: MP1 Social /megaportnetworks On the Web @megaport Megaport.com/investor Megaport.com/newsroom @megaportnetwork 26