Hmc Capital Limited · ASX:HMC
Hmc Capital — Investor Presentation (October 2024)
35 slides from Hmc Capital's investor presentation, Oct 24, 2024
Slide 1: Strategic Acquisitions to Seed Global DigiCo Platform & $300m Equity Raising
HM Capital Strategic Acquisitions to Seed Global a DigiCo Platform & $300m Equity Raising 24 October 2024
Slide 2: Agenda
01 02 03 Executive Acquisition of Global DigiCo Summary Global Switch REIT Australia 04 05 Equity Raising Appendices 1
Slide 3: Journey of Creation Artwork by Billy Reynolds
“Journey of Creation” Artwork by Billy Reynolds
Slide 4: Important notices and disclaimer
Important notices and disclaimer This investor presentation (Presentation) is dated 24 October 2024 and has been prepared by HMC Capital Limited ACN 138 990 593 (HMC) as corporate authorised representative of the holder of AFSL 291466. Both entities may be contacted on 1300 426 326. By attending an
Slide 5: Important notices and disclaimer
Important notices and disclaimer Financial information All financial information in this Presentation is in Australian dollars ($ or AUD) unless otherwise stated. This Presentation may include certain pro forma financial information. Any such pro forma historical financial information provided in th
Slide 6: Executive Summary
Executive Summary Strategic initiatives to establish a global digital infrastructure platform 1 ▪ HMC Capital (HMC) is establishing a Global Digital Infrastructure Platform (DigiCo) comprising: ‒ The global DigiCo Infrastructure REIT (DigiCo REIT) intended to be listed on the ASX alongside a new ins
Slide 7: HMC Capital Platform
HMC Capital Platform Scalable platforms supported by market leading investment capability and track record PRIVATE DIGITAL REAL ESTATE PRIVATE EQUITY ENERGY TRANSITION CREDIT INFRASTRUCTURE $15.4bn $9.7bn $0.9bn $1.8bn In development $3.0bn+2 Current AUM1 Sector Head Divisional Leadership Sid Sharma
Slide 8: Acquisition of Global Switch Australia
ACQUISITION OF GLOBAL SWITCH AUSTRALIA
Slide 9: Global Switch Australia
Global Switch Australia Only large-scale data centre campus in the Sydney CBD Overview of Global Switch ▪ Global Switch Australia currently comprises two adjoining data centre sites in Sydney, Two adjacent operating data centre sites with significant representing the only large-scale data centre cam
Slide 10: Global Switch Australia
Global Switch Australia High quality and diverse customer base with key hyperscalers already on site Substantial recent 110 9 3 4 Direct access to intracity and investment in structured fibre to Accessible Cloud on-ramps to intercity fibre Tier 1 and Tier 2 Internet support submarine cable leading g
Slide 11: Attractive growth tailwinds supported by industry megatrends and a supply constrained Sydney market
Attractive growth tailwinds supported by industry megatrends and a supply constrained Sydney market Rapid increase in data centre-dependent generative AI … … has led to a significant increase in IT power capacity required Global generative AI market size (US$bn) Incremental GPU-driven demand in addi
Slide 12: Global DigiCo REIT
ee | HM Copital GLOBAL DigiCo REIT 1
Slide 13: DigiCo REIT – Investment Highlights
DigiCo REIT – Investment Highlights Differentiated ✓ Investment strategy comprising a model portfolio of stabilised assets, lease-up/value-add assets and value accretive investment developments strategy Unique listed ✓ Targeting a stable distribution yield with earnings growth being driven through e
Slide 14: DigiCo REIT – Model Portfolio
DigiCo REIT – Model Portfolio Multiple seed assets secured or under exclusive due diligence across the digital infrastructure value chain STABILISED LEASE UP & VALUE ADD DEVELOPMENT PORTFOLIO MODEL ~40 – 50% ~40 – 50% ~10 – 20% Greenfield Development ✓ Wholesale Asset colocation with Secured develop
Slide 15: DigiCo REIT – Update
DigiCo REIT – Update Global DigiCo Infrastructure REIT proposed to be listed on the ASX alongside unlisted fund with seed portfolio secured or under exclusive due diligence DigiCo seed portfolio secured or under exclusive DD The only large-scale data centre campus in Sydney CBD ✓ Acquisition of Glob
Slide 16: DigiCo REIT – Proposed Structure
DigiCo REIT – Proposed Structure 2 underwriting options IPO INVESTORS UNLISTED INSTITUTIONAL INVESTORS DigiCo REIT HMC UNLISTED DIGITAL INFRASTRUCTURE FUND (HDIF) ▪ Proposed ASX listed vehicle, holding direct ownership of both stabilised, yield ▪ HDIF will hold operating and greenfield assets with s
Slide 17: DigiCo REIT – Management Team
DigiCo REIT – Management Team Highly credentialed management team with an average of >20 years' experience in the data centre sector Australia Damon Reid Kate Mitchell Emma Hayward Aaron Smith Murray Goldring George Gashovski CEO, DigiCo REIT Operations & Customer Commercial Director Project Directo
Slide 18: Equity Raising
EQUITY RAISING HM Copital 7
Slide 19: Offer Terms
Offer Terms ▪ HMC is undertaking a $300m fully underwritten institutional placement (Placement) ▪ Issue of approximately 34 million New Shares under the Placement, representing 9.07% of HMC's ordinary shares on Offer structure issue ▪ The Placement will be conducted by way of bookbuild process, open
Slide 20: Sources & Uses
Sources & Uses Sources of funds $m Equity Raising – Institutional Placement 300.0 Total sources of funds 300.0 Uses of funds $m Cash at bank (underwriting support) 295.0 Transaction costs 5.0 Total uses of funds 300.0 19
Slide 21: Indicative timetable
Indicative timetable Event Date Trading halt and announcement of Placement Thursday, 24 October 2024 Shares recommence trading on ASX (trading halt lifted and announcement of completion of Placement) Friday, 25 October 2024 Settlement of New Shares issued under the Placement Tuesday, 29 October 2024
Slide 22: Appendix A: Key Risks
APPENDIX A: KEY RISKS HM Copital 2]
Slide 23: Key Risks
Key Risks This Appendix discusses some of the key risks associated with an investment in HMC shares. A number of risks and uncertainties may adversely affect the operating and financial performance or position of HMC and, in turn, affect the value of HMC shares. These include specific risks associat
Slide 24: Key Risks
Key Risks 1.7 Liquidity risk Funding and liquidity are material risks to HMC because of the need to adequately fund operations, investments and future growth. An inability to adequately fund business operations, investments and growth plans may lead to difficulty in executing HMC’s funds management
Slide 25: Key Risks
Key Risks 1.15 Failure to complete or effectively integrate acquisitions If key conditions or warranties under any acquisition agreements are not satisfied, completion of the acquisitions may be deferred or delayed, may not occur on the terms of the acquisition agreements or may not occur at all. Th
Slide 26: Key Risks
Key Risks 2 Risks in relation to the Acquisition 2.1 Reliance on information provided by the vendors HMC undertook a due diligence process in respect of the Acquisition, which relied in part on the review of financial (including unaudited and other financial information), operational and other infor
Slide 27: Key Risks
Key Risks 2.6 Global Switch Australia may not be successfully integrated The integration of Global Switch Australia carries risk, including potential delays or costs in implementing necessary changes, and difficulties in integrating various operations. The success of the Acquisition, and the ability
Slide 28: Key Risks
Key Risks 3 Risks in relation to the proposed IPO of DigiCo REIT 3.1 DigiCo REIT listing risk While DigiCo REIT is intended to list on the ASX in December 2024, there is a risk that the DigiCo REIT initial public offering (IPO) may not proceed as planned (or may not proceed at all) or is delayed. Th
Slide 29: Key Risks
Key Risks 4 Key general and share related risks 4.1 Risks associated with an investment in shares There are general risks associated with investments in equity capital. The trading price of shares may fluctuate with movements in equity capital markets in Australia and internationally. Generally appl
Slide 30: Appendix B: Summary of Equity Underwriting Arrangements
HM Copital APPENDIX B: SUMMARY OF EQUITY UNDERWRITING ARRANGEMENTS 29
Slide 31: Summary of Equity Underwriting Arrangements
Summary of Equity Underwriting Arrangements Goldman Sachs Australia Pty Ltd, J.P. Morgan Securities Australia Limited, Macquarie Capital (Australia) Limited and UBS Securities Australia Limited (Joint Lead Managers) are acting as joint lead managers, underwriters and bookrunners of the Placement. HM
Slide 32: Appendix C: International Offer Restrictions
HM Copital APPENDIX C: INTERNATIONAL OFFER RESTRICTIONS 3]
Slide 33: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 34: Further Information
Further Information Investors and analysts Media Misha Mohl Will McMicking John Frey Group Head of Strategy, Research & Group Chief Financial Officer Corporate communications Investor Relations +61 422 371 575 +61 451 634 991 +61 411 361 361 misha.mohl@hmccapital.com.au william.mcmicking@hmccapital.
Slide 35: HM Capital
HM Copital