Slide 1: FY20 Results & Transformational Growth Presentation
Spirit Telecom Limited (ASX: ST1) FY20 Results & Transformational Growth Presentation Building a Modern Telco For Major Market Disruption 25 August 2020 Spirit Telecom (ASX:ST1) conference call on Tuesday 25 August from 12:30pm to 1:00pm AEST. To register your attendance, please follow this link: ht
Slide 2: FY 2020 Summary & FY21 Fast Start
FY 2020 Summary & FY21 Fast Start FY20 FY21 – FAST START • FY20 revenue up 100% to $34.9M, marking a • Current revenue run rate is circa $80.0M transformative year for Spirit. • Current balance sheet capital at $36.0M (Assumes SPP fully subscribed at $5.0M) • Underlying EBITDA* up 88% on FY19 to • F
Slide 3: Growth Strategy Targeting Industry Verticals & Geographies
Growth Strategy Targeting Industry Verticals & Geographies More in-demand services + Modern Telco Offering large industry clients = High Speed Voice/ Cloud high value recurring revenue (avg of IT Support Security >$20k pm per customer) with long Internet Telephone Storage tenure Spirit IT&T = Revenu
Slide 4: Combining the Opportunities of Telco & IT Markets
Combining the Opportunities of Telco & IT Markets $15B High growth FY19 Spirit opportunity Category Business Telco High Speed Internet $49B IT Support Combined IT Security Services & Business Voice/Telephone Telco markets Cloud Storage $34B FY20 Spirit Acquired Capability IT Services High growth are
Slide 5: The Need for the Modern Telco for Business
The Need for the Modern Telco for Business “60% of organizations will use an external service provider’s cloud managed Modern businesses have service offering, which is double the percentage of organizations from 2018*” modern requirements… Problem being solved: • Major telcos are not equipped to Di
Slide 6: Outlook Q1 & Q2: Execution & Reaching Scale Quickly
Outlook Q1 & Q2: Execution & Reaching Scale Quickly 12,000+ leads in H2 FY20 +300 hungry wholesale Telco & IT in SpiritX digital service dealer network by DEC 20… aggregation platform… Spirit has a growing network of telco dealers National advertising campaign Historically only supplied basic telco
Slide 7: Spirit – Major Expansion & Disruption to Major Telco’s
Spirit – Major Expansion & Disruption to Major Telco’s INSTANT SYDNEY & NSW MARKET EXPANSION WITH THE AGREED ACQUISITION OF THREE IT SERVICES COMPANIES. Acquisitions X 3 Capital Raise • Immediate geographic expansion with the • Total capital raise size $23.2M simultaneous strategic acquisition of th
Slide 8: Spirit – Major Expansion & Disruption to Major Telco’s
Spirit – Major Expansion & Disruption to Major Telco’s INSTANT SYDNEY & NSW MARKET EXPANSION WITH THE AGREED ACQUISITION OF THREE IT SERVICES COMPANIES. 1 July Phase: VPD acquisition 2 August Phase: Three IT Companies acquired created a new Spirit Wholesaler – who become Spirit Solutions Partners: &
Slide 9: Capital Available for Acquisitions & Growth
Capital Available for Acquisitions & Growth Capital Availability $36.0M $40.0M Capital Components * $35.0M SPP (*), Cash at Bank $4.1M $5.0M $30.0M Equity Raising (net) $17.3M Debt Facility Debt Facility Headroom $9.6M Headroom, $25.0M $9.6M Share Purchase Plan ** $5.0M $20.0M Total Capital $36.0M $
Slide 10: Year on Year Revenue up 100%
Year on Year Revenue up 100% $34.9M $35.0M $30.0M +100% Highlights - Total Revenue Growth to $25.0M $34.9M $20.0M • Total revenue growth up 100% to $34.9M. $17.4M • Recurring revenue growth up 48% to $15.0M $23.5M. $10.0M • S&P revenue growth up to $11.4M. $5.0M $0.0M F19 F20 Recurring Revenue *S&P
Slide 11: FY 2020 Underlying EBITDA Growth
FY 2020 Underlying EBITDA* Growth $4.0M $3.7M $3.5M Highlights – Underlying EBITDA $3.0M GROWTH to $3.73M +88% • Total EBITDA growth up 88%. $2.5M • Economics of Telco & IT cross selling, $2.0M $2.0M bundling into solutions for B2B showing material gains. $1.5M • Full year EBITDA gains from Trident
Slide 12: Year on Year Recurring Revenue up 48%
Year on Year Recurring Revenue up 48% $25.0M $23.5M +48% $20.0M Highlights - Recurring Revenue Growth to $15.9M $23.5M $15.0M • Recurring revenue growth up 48% to $23.5M. $10.0M • B2B recurring revenue growth up 75% to $18.7M. • B2C recurring revenue at $3.5M. $5.0M • Legacy and other recurring reve
Slide 13: B2B Year on Year Revenue up 147%
B2B Year on Year Revenue up 147% $30.0M $28.9M $25.0M +147% Highlights - Total Revenue Growth to $20.0M $28.9M • B2B revenue growth up 147% to $28.9M. $15.0M $11.7M • B2B recurring revenue growth up 75% to $18.7M. $10.0M • B2B S&P revenue growth up to $10.2M. $5.0M $0.0M F19 F20 Recurring Revenue S&
Slide 14: Total Revenue Breakdown
Total Revenue Breakdown 100% B2B Mix 17% uplift to 84% through 5% 10% IT/Managed services & Data acquisition & 90% 10% organic growth. 80% 23% • IT/Managed services bundles and cross 70% sell will further drive growth through higher ARPU, a lower capex cost base 60% and increase in sales conversions
Slide 15: ST1 Accelerated Growth Plan 2020-21
ST1 ACCELERATED GROWTH PLAN 2020-21 ORGANIC 2020-21 ST1 TARGET M&A 1. Current revenue rate is circa $80.0M 1. Total current balance 1. Build scale via organic + M&A. sheet capital availability 2. National marketing launch of Spirit at $36.0M (Assumes SPP 2. Circa +$85M Revenue run rate Sydney, Melbo
Slide 16: Disclaimer – Important Information
Disclaimer – Important Information The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examination and consult
Slide 17: Spirit Telecom Limited (ASX: ST1)
Spirit Telecom Limited (ASX: ST1) Building a Modern Telco For Major Market Disruption