Slide 1: Discover Asia's New Extraordinary Network
Discover Asia’s New Extraordinary Network SLC:ASX H1 FY20 Results & Market Update Tuesday 18th February 2020 SINGAPORE
Slide 2: Disclaimer
Disclaimer No reliance To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Superloop Limited (Superloop) or any of its related bodies corporate or their respective directors, officers, partners, employees,
Slide 3: SLC:ASX H1 FY20 Results: Agenda
SLC:ASX H1 FY20 Results: Agenda H1 FY20 Performance: EBITDA $4.1m in line with our expectations Connectivity Growth: Customers buying more and we are delivering quicker Customer Proof Points: Strong multi-year, annuity style large contracts signed in H1 prove portfolio is compelling Platforms Levera
Slide 4: H1 FY20 Operational Highlights
H1 FY20 Operational Highlights Connectivity Growth Key major Asia Pacific Network 48% PcP customer wins Complete 30% growth in Home Broadband since July 2019 Capex(1) 70% down yoy & Recapitalisation to 23k subscribers opex spend 11% down yoy Completed (1) Capex additions during the period excluding I
Slide 5: Overview of Superloop's portfolio connecting Asia Pacific
Overview of Superloop’s portfolio connecting Asia Pacific 1 Asia Pacific 2 Platforms leveraging 3 Non-core Core Fibre Network APAC Fibre Network CMS being retired Fibre networks connecting key hubs Fixed Wireless (Connectivity), Guest WiFi Cloud Managed Services providing in Singapore, Australia & Hon
Slide 6: H1 FY20 Performance by Segment
H1 FY20 Performance by Segment Divisional performance reflects our refinement of focus to core segments announced in 2019 1 Fibre networks 2 Platforms 3 Services Core Fibre Connectivity +50% growth in gross margin as recurring revenue from young Connectivity Broadband Services network is onboarded and
Slide 7: H1 FY20 EBITDA Movements on Prior H1 FY19
H1 FY20 EBITDA Movements on Prior H1 FY19 H1 EBITDA Growth Drivers $1.0m $2.1m growth in core $(1.5)m Connectivity Revenues $0.5m Opex $1.0m Fixed Wireless incl Fixed Wireless Connectivity savings AASB16 margin (incl. (inc AASB16 WiFi margin AASB16 $(2.9)m impact) from non impact) $0.9m Home Broadba
Slide 8: H1 FY20 Group Profit & Loss Performance
H1 FY20 Group Profit & Loss Performance H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 PcP $4.1m EBITDA in line with Total Revenue $51.3 $66.9 $60.3 $59.5 $51.3 (15)% our expectations Revenue excl. subsea dev. $47.7 $56.6 $57.3 $58.9 $51.3 (10)% Strong underlying margin growth in our core Direct Costs $(23.
Slide 9: Financial Position at 31 December 2019
Financial Position at 31 December 2019 Cash Flow ($m) H1 FY19 H1 FY20 Change Operating cash flows 2.0 6.0 4.0 Cash Flows $6.0m +$4m operating cash flows year Investing cash flows (34.3) (44.9)* (10.6) Operating on year Financing cash flows 25.3 36.0 10.7 Cashflow $2.0m Operating + Investing cash flows inc
Slide 10: Connectivity Growth
Connectivity Growth PERTH 10 H1 FY20 Performance Connectivity Growth Customer Success Stories Platforms Leveraging Network Investments in Our Strategy Outlook Appendix H1 FY20 Update
Slide 11: Customers are buying more and we are delivering quicker
Customers are buying more and we are delivering quicker NEW FIBRE CONNECTIVITY ANNUALISED CONNECTIVITY DELIVERY TURNAROUND TIME REVENUE SOLD (excluding IRUs & swaps) 158 days Weighted 104 days average calendar days from order received to service $7.8m commenced Factors impacting 88 days “Turnaround
Slide 12: Higher sales & quicker delivery translating to strong growth
Higher sales & quicker delivery translating to strong growth FIBRE CONNECTIVITY VOLUMES CORE FIBRE CONNECTIVITY REVENUE $17.2m Core Fibre Connectivity $1.6 Revenues(1) KPI Jun 2018 Dec 2018 Jun 2019 Dec 2019 Hong Kong # Services being 1,827 2,100 2,679 3,063 billed Australia Services Growth $11.6m +
Slide 13: Customer Success Stories
Customer Success Stories SYDNEY 13 H1 FY20 Performance Connectivity Growth Customer Success Stories Platforms Leveraging Network Investments in Our Strategy Outlook Appendix H1 FY20 Update
Slide 14: Super network for super customers across Asia Pacific
Super network for super customers across Asia Pacific Cloud & Content Global Service Multinational Key verticals for Superloop Providers Providers Companies Content & cloud providers Global & local service providers (wholesale) Managed Service Providers requiring NBN access and Services Multinational
Slide 15: Superloop's high-bandwidth network is being chosen for mission critical networks
Superloop’s high-bandwidth network is being chosen for mission critical networks for major customers KEY NEW WINS IN H1 FY20 VALIDATION OF OUR MARKET OPPORTUNITY Aurizon (ASX:AZJ) selected Customer Value Superloop Advantage Legacy Networks Superloop to provide high-bandwidth nationwide Designed to d
Slide 16: Platforms Leveraging Our Network
Platforms Leveraging Our Network MELBOURNE 16 H1 FY20 Performance Connectivity Growth Customer Success Stories Platforms Leveraging Network Investments in Our Strategy Outlook Appendix H1 FY20 Update
Slide 17: Platforms leveraging our Asia Pacific network
Platforms leveraging our Asia Pacific network (Reporting segment) Fibre Networks in Singapore, (Connectivity) Australia & Hong Kong Fixed Wireless Network (Connectivity) across Australia CyberHound secure (Services) internet Guest WiFi platform for leisure, health & education (Broadband) campuses Res
Slide 18: Platforms leveraging our fibre connectivity foundation
Platforms leveraging our fibre connectivity foundation $m Revenue by Half H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 Margin % Fixed Wireless Connectivity Revenue reduction of 13% PcP due to net churn, predominantly Fixed Wireless due to a small number of high (Connectivity) 85% value contracts. $10.6 $1
Slide 19: Home Broadband leveraging our network & platforms
Strong lead indicators for guests on WiFi and homes on Superloop Home Broadband leveraging our network & platforms Superloop Home Broadband Guest WiFi subscribers Home Broadband subscribers have grown 30% migrated to new platform since July 2019 which enables future expansion Subscription growth rat
Slide 20: Investments in Our Strategy
Investments in Our Strategy AUCKLAND 20 H1 FY20 Performance Connectivity Growth Customer Success Stories Platforms Leveraging Network Investments in Our Strategy Outlook Appendix H1 FY20 Update
Slide 21: Superloop's international subsea network connecting Asia Pacific to Europe and North America
Superloop’s international subsea network connecting Asia Pacific to Europe and North America APAC SUBSEA CABLE NETWORK 21 H1 FY20 Performance Connectivity Growth Customer Success Stories Platforms Leveraging Network Investments in Our Strategy Outlook Appendix H1 FY20 Update
Slide 22: CapEx & OpEx reducing, with COGS investments from expansion
CapEx & OpEx reducing, with COGS investments from expansion $55m Capital Expenditure Operational Expenses Capital Expenditure $4m Reduction in capital expenditure Intangible Employee Expenses due to completion of Network Additions $55m infrastructure in H2 FY2019. IRU Additions (swaps) Property, Pla
Slide 23: H1 FY20 Outlook
H1 FY20 Outlook HONG KONG 23 H1 FY20 Performance Connectivity Growth Customer Success Stories Platforms Leveraging Network Investments in Our Strategy Outlook Appendix H1 FY20 Update
Slide 24: FY20 Focus Areas
FY20 Focus Areas Focus Area FY20 Execute further master Exploit unique Continue to drive Leverage core fibre service agreements, Superloop national operational efficiencies networks to extend contracts and orders to backbone extension with particular focus on Superloop’s platform provide connectivity
Slide 25: FY20 EBITDA Outlook $12-$15m
FY20 EBITDA Outlook $12-$15m calling out downside risk $1-$3m $2m FY20 Guidance Net other Potential downside risk revised to growth and $3m savings incl. of macro Delivery timing environment $12m-$15m of new limiting contracts international travel & related H1 Sales Guest WiFi and EBITDA(1) not yet
Slide 26: Superloop is Well Positioned for Future Value Creation
Superloop is Well Positioned for Future Value Creation Major capital investment program is complete. Incremental capex predominantly success-based projects and process automation Proof points in sales pipeline converting into new customers and future revenue growth on Superloop owned core fibre conne
Slide 27: Appendix
Appendix Historical Performance by sub-segment Direct & Indirect Operating Cost performance 27 H1 FY20 Performance Connectivity Growth Customer Success Stories Platforms Leveraging Network Investments in Our Strategy Outlook Appendix H1 FY20 Update
Slide 28: Historical Financial Performance by Sub-Segment (1/2)
Historical Financial Performance by Sub-Segment (1/2) $000 H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 Connectivity Revenue Connectivity revenues & Australia Fibre 6,281 4,592 5,562 16,204 8,155 margins consist of fibre Singapore Fibre 2,812 3,157 4,929 5,376 7,415 networks in Singapore, Hong Hong Kong F
Slide 29: Historical Financial Performance by Sub-Segment (2/2)
Historical Financial Performance by Sub-Segment (2/2) $000 H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 Rest of Business Revenue Guest WiFi Revenue 7,866 11,387 11,590 7,117 5,792 Home Broadband Revenue 1,934 5,465 8,706 8,173 8,761 Total Broadband Revenue 9,800 16,852 20,296 15,290 14,554 ‘Rest of busin
Slide 30: H1 FY20 Direct & Indirect Operating Costs Performance
H1 FY20 Direct & Indirect Operating Costs Performance H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 HoH Connectivity Direct Costs $(7.5) $(11.3) $(11.3) $(16.4) $(12.3) (9%) Broadband Direct Costs $ (5.8) $(6.6) $(11.5) $(8.2) $(7.5) 35% Direct Costs Reduction of Direct costs of Services Direct Costs $(10
Slide 31: Services Segment includes non-core CMS + core Cyberhound
Services Segment includes non-core CMS + core Cyberhound Cloud Managed Services $m Revenue by Half H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 Margin % In 2019, SLC notified investors and customers that CMS would be discontinued, and customers migrated to other providers on a case-by-case basis. As per t
Slide 32: Fibre Scale Economics
Fibre Scale Economics REVENUE H1 FY20 REVENUE H1 FY20 REVENUE H1 FY20 Australia Singapore Hong Kong $8.2million $7.4million $1.6million 48% HoH growth 50% HoH growth 40% HoH growth $94m Invested Cap $58m Invested Cap $68m Invested Cap $88m Invested (IRUs) $67m Invested (IRUs) $83m Invested (IRUs) 28
Slide 33: Thank You Contact Details
Thank You Contact Details investor@superloop.com https://investors.superloop.com/Investors/ BRISBANE 33