5g Networks Limited · ASX:5GN
5g Networks — Shareholder Meeting (November 2019)
19 slides from 5g Networks's shareholder meeting presentation, Nov 21, 2019
Slide 1: Annual General Meeting Presentation FY2019
Annual General Meeting Presentation FY2019
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that 5G Netwo
Slide 3: Key Business Achievements for 5G Networks
Key Business Achievements for 5G Networks Key Milestones Achieved since 2017 IPO: • 6 acquisitions successfully completed and integrated; • End to End IT proposition for clients supported by our integrated product offering – Cloud, Data Centre, Data Networking and Managed IT; • Integration of people
Slide 4: Financial Performance and Strategic Growth Plan
Financial Performance and Strategic Growth Plan Key Financial Achievements in FY19 • Positive Operating Cashflow; • Revenue growth 848% from FY18 to $51M: • 71% contracted; • $27M Total Contract Value of re-contracted and new revenue in FY19; • Underlying EBITDA* of $3.2M; • EBITDA margin 8.4% for H
Slide 5: What We Do
What We Do 5G Networks empower digital technologies for business by offering simplified, end to end service experiences for our customers. Core Products & Services Data Data Centre Managed Networking & Cloud Services Enterprise grade connectivity Delivering on the cloud strategies of Optimising ICT
Slide 6: FY19 Key Outcomes and Achievements
FY19 Key Outcomes and Achievements 3 2500 Acquisitions completed Customers with strong National expansion and integrated in FY19 growth in B2B mid-market to 12 offices and 200 experienced employees 71% +$27M Of total FY19 revenue National Salesforce In (TCV) revenue from contracted & recurring rollo
Slide 7: FY19 Results Highlight Significant Growth in Profitability
FY19 Results Highlight Significant Growth in Profitability 1c 8.4%* $2.3M* Inaugural dividend Revenue to EBITDA 1c fully franked ratio for H2FY19 $3.2M* National expansion to 12 offices and 200 experienced FY19 EBITDA 421% growth from FY18 “We are focussed on EBITDA growth and clearly we $51M have a
Slide 8: Future Strategic Agenda Dedicated to Accelerating Growth
Future Strategic Agenda Dedicated to Accelerating Growth Acquisitions and Upsell Acquisitions and Channel Expansion Growth strategy • APTel – Managed Voice/Network • Anittel – Managed IT • Sydney Data Centre • Strategic acquisitions • Enspire – Data Networks & Cloud • Hostworks – Cloud Hosting Acqui
Slide 9: Strategic Principles Underpin our Acquisition Strategy
Strategic Principles Underpin our Acquisition Strategy Discipline & Framework The 5GN acquisition targets are identified, managed and integrated in accord with our Strategic Framework Financial Value Products & Infrastructure People & Culture Operational Scale • Purchase price <4X EBITDA • Offerings
Slide 10: Targeted Acquisitions Continue To Grow Our Capacity
Targeted Acquisitions Continue To Grow Our Capacity Data Networks Data Centre Cloud Managed Services Management of customers’ entire digital experience MPLS Network connecting all Major Rack Capacity Private and Managed capital cities 6MW of Power Public Cloud Devices 10 GB 600 2000+ 20,000 Capacity
Slide 11: Growth Strategy Including New Indirect Sales Channel
Growth Strategy Including New Indirect Sales Channel New Indirect Sales Channel to leverage capacity • Leverage high capacity product and platform assets • Accelerate growth outcomes to meet aggressive revenue targets in FY2020+ Cross-sell, up-sell for customer revenue growth • Harvest acquired cust
Slide 12: Appendices
Appendices SEN
Slide 13: Revenue Breakdown
Revenue Breakdown H2 FY 19 H1 FY 19 Total FY2019 FY 2018 $000 $000 $000 $000 Key Highlights Network and Voice 3,263 3,515 6,778 2,020 Data Centre 2,516 1,557 4,073 - • 17% growth on H1 revenue; Hardware Software 8,438 6,559 14,997 564 focus on high margin products and annuity Managed Services 7,175
Slide 14: Profit & Loss
Profit & Loss H2 FY 19 H1 FY 19 Total FY2019 FY 2018 $000 $000 $000 $000 Key Highlights Revenue 27,593 23,579 51,172 6,129 Network and Data (13,100) (11,556) (24,656) (2,538) • Operational synergies Employee Benefits (11,393) (9,552) (20,945) (2,269) implemented and nearing Rent and Office (141) (24
Slide 15: Cash Flow
Cash Flow H2 FY19 H1 FY19 Total FY2019 FY 2018 $000 $000 $000 $000 Key Highlights Cash flows from operating activities Receipts from customers 30,811 22,753 53,564 5,601 • Strong cash receipts of Payments to suppliers and employees (30,784) (21,339) (52,122) (6,442) $53m; increase of 35% on H1 Inter
Slide 16: Balance Sheet
Balance Sheet H2 FY 19 H1 FY 19 FY 2018 $000 $000 $000 Key Highlights Cash and cash equivalents 6,660 2,811 3,357 Trade and other receivables Other current assets 3,981 1,834 3,576 2,196 1,136 839 • Strong cash balance Total Current Assets 12,475 8,583 5,332 of $6.7m Property, plant and equipment 5,
Slide 17: Capital Structure
Capital Structure ASX Code 5GN Shares on issue 65,579,298 Options (exercise price $0.30) 400,000 Options (exercise price $0.80) 600,000 Options (exercise price $0.60) 2,660,000 Options (exercise price $0.65) 500,000 1.80 Options (exercise price $0.80) 1,750,000 Options (exercise price $0.80) 2,000,0
Slide 18: The 5GN Growth Journey
The 5GN Growth Journey Demonstrates the Acquisition Strategy is Delivering Accretive Value 5GN Milestone and growth journey IPO $4M Raise Acquisition Acquisition Acquisition Acquisition Revenue $55M - $65M and Acquisition EBITDA target 8%-12% excluding acquisitions FY2021+ FY2018 2018 JUN DEC JUN JU
Slide 19: Thank you
For further information contact Joe Demase Glen Dymond Managing Director Investor Relations Thank you jd@5gn.com.au 1300 10 11 12 gdy@5gn.com.au 04 0819 9712