Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — 9M FY21 Earnings Presentation
16 slides from Netlink Nbn Trust's earnings presentation, Mar 25, 2021
Slide 1: 9M FY21 Investor Presentation
9M FY21 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in NetLink NBN Trust (the “Trust” and the units in the Trust, the “Units”
Slide 3: Financial snapshot
Financial snapshot1 S$276m (0.5)%2 S$123m S$3,761m Revenue Cash Balance Market Capitalisation3 S$210m 3.6% 2 S$666m S$4,303m EBITDA Gross Debt Enterprise Value 1 9M FY21 2 Variance versus 9M FY20 3 Based on the unit price of S$0.965 at 31 Dec 2020 3
Slide 4: Fibre is 'future proof'
Fibre is ‘future proof’ #1 PREFERRED Only means of fixed broadband delivery in Singapore HIGH PENETRATION Over 90% residential penetration rate LOW PRICES Fibre broadband prices are lower in Singapore than many other countries CRITICAL INFRASTRUCTURE Fibre supports last-mile wireless access solution
Slide 5: Our network
Our network 1,443,032 1,884 End-Users 48,004 Connections End-Users 5
Slide 6: A resilient business model
A resilient business model RAB Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of 9M FY21 64.5%
Slide 7: Fibre connections
Fibre connections Non-Building Address Points Residential Non-Residential And Segment connections1 ’000 ’000 1,500 50 47.7 47.0 47.6 48.0 NBAP connections 1,443 46.2 1,427 1,428 1,437 Segment connections 43.9 2,000 1,400 1,847 1,884 1,772 1,800 1,328 40 1,679 1,587 1,300 1,600 1,400 1,192 30 1,200 1
Slide 8: 9M FY21 Profit & loss statement
9M FY21 Profit & loss statement S$’000 9M FY21 9M FY20 Variance (%) Revenue for 9M FY21 Revenue 276,279 277,750 (0.5) was 0.5% lower mainly due to lower installation- related revenue. This EBITDA 209,915 202,647 3.6 was partially offset by higher residential and NBAP & Segment EBITDA margin connecti
Slide 9: Robust balance sheet
Robust balance sheet1 S$123m S$666m S$2,784m Cash Balance Gross Debt Net Assets 2.5x 14.2x 71.4 cents Gross Debt/ EBITDA Interest Net Assets per Unit EBITDA2 Cover2 • The Group entered into a one-year extension for the outstanding term loan of S$510m to mature on 24 March 2022 • Stable capital struc
Slide 10: Attractive distribution yield with low risk
Attractive distribution yield with low risk Distribution per Unit Distribution Yield (%) (Singapore cents) (2) 5.05 5.2%(2) 4.88 4.6% 4.3% 3.24 2.53 0.9% 0.4% FP18 (1) FY19 FY20 H1FY21 NetLink 10-YR Bank STI FTSE NBN Yield SG Govt 12 mth Yield ST REIT Bond FD Rate Yield Bloomberg as at 30 Sep 2020 (
Slide 11: Our focus for FY21
Our focus for FY21 NON-RESIDENTIAL, 01 RESIDENTIAL 02 NBAP & SEGMENT • Connect households not • Denser network – adding on fibre via initiatives such capacity, flexibility and as IMDA’s Home Access resilience programme for low-income • Prepare to support 5G households infrastructure • Connect new ho
Slide 12: Thank You
Thank You
Slide 13: Supplemental Business Information
Supplemental Business Information
Slide 14: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Pricing of NLT’s principal services are regulated by IMDA • IMDA shall hold a review of pricing terms every five years following the last price review, or at any such time as IMDA may consider appropriate (which may include a mid-term review in the third year
Slide 15: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Framework for RAB Based Pricing Model Methodology for RAB based pricing model 1 1 • Base year of the RAB is 2012 RAB WACC – Assets purchased up to 2012 are valued at 2012 Cost Base prices for RAB – Assets purchased after 2012 are valued at actual cost 2 2 • N
Slide 16: Understanding the ICO pricing framework
Understanding the ICO pricing framework Illustrative Worked Example How Does EAC Work for 1 Year’s Outflow on Capex? Assuming Opening RAB of S$1Bn, WACC of 7.0% and Asset Useful Life of 10 Years EAC (S$ MM) RAB (S$MM) 300 1,000 750 200 142 142 142 142 142 142 142 142 142 142 500 34 26 18 9 65 60 54