Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — Q3 FY19 Earnings Presentation
18 slides from Netlink Nbn Trust's earnings presentation, April 2019
Slide 1: Investor Presentation
Investor Presentation April 2019 The joint issue managers of the initial public offering and listing of NetLink NBN Trust were DBS Bank Ltd., Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch. The joint underwriters of the initial public offering and listing of NetLink NBN Trust wer
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: Overview
Overview Key Highlights Financial Snapshot • YTD EBITDA & PAT have exceeded Q3 Variance vs $m projections by 3.8% and 20.1% FY19 Projection(1) respectively Revenue 89.0 3.4% • Residential fibre connections has EBITDA 62.8 3.7% surpassed the full-year IPO projections with 1.28 million EBITDA Margin 7
Slide 4: Fibre is a critical infrastructure enabling Singapore's Next Gen NBN
Fibre is a critical infrastructure enabling Singapore’s Next Gen NBN Fibre is the medium of #1 choice for delivering broadband services Fibre capacity is scalable About 9 out of 10 FIBRE IS homes in Singapore ‘FUTURE PROOF’ has a fibre termination point installed Fibre is used to Fibre broadband sup
Slide 5: Our network
Our network 1,283,801 45,734 1,462 End-Users End-Users Connections * Figures are as at 31 Dec 2018 5
Slide 6: A resilient business model
A resilient business model RAB Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of Q3 FY19 Reven
Slide 7: Fibre connections
Fibre connections Residential Non-Residential Non-Building Address Points ’000 ’000 1,300 1,283.8 50 3.4% 1,278.3 47.3 1,592 45.5 45.7 1,600 1,241.0 44.8 43.9 0.5% 1,462 1,217.1 14.2% 1,192.5 1,400 1,200 40 38.5 1,280 1,200 1,129 1,094.8 1,100 30 1,000 835 IPO Projection IPO Projection IPO Projectio
Slide 8: Q3 FY19 Profit & loss statement
Q3 FY19 Profit & loss statement S$’000 Q3 FY19 Projection(1) Variance (%) Revenue was higher due to Revenue 89,012 86,108 3.4 higher diversion revenue and ducts and manholes service revenue. This was EBITDA 62,834 60,588 3.7 partially offset by lower than projected installation-related revenue. EBIT
Slide 9: 9M FY19 Profit & loss statement
9M FY19 Profit & loss statement S$’000 9M FY19 Projection(1) Variance (%) Revenue was higher due to Revenue 265,717 254,779 4.3 higher diversion revenue and ducts and manholes service revenue. This was partially EBITDA 185,065 178,355 3.8 offset by lower than projected installation-related EBITDA ma
Slide 10: Balance sheet as at 31 Dec 2018
Balance sheet as at 31 Dec 2018 Cash Balance S$102m Gross Debt S$636m Net Assets S$3,009m Gross Debt/EBITDA 2.6x EBITDA Interest Cover 13.5x Net Assets Per Unit(1) 77.2 ( (1) Net assets per unit represents equity divided by total number of units (3,896,971,100) 10
Slide 11: Growth opportunities
Growth opportunities In the next Residential homes not on Increasing Non-residential NBAP demand 5 years fibre broadband & new end-users from Smart household formations Nation, IoT and mobile Residential and Non-residential Smart 5G Mobile Beyond the IoT Nation technology next 5 years 11
Slide 12: Attractive distribution yield with low risk
Attractive distribution yield with low risk NetLink NBN’s Distribution Yield vs Other Investments 1 7% 2 6.4% 6% 5.1% Distribution Yield (%) 5% 4.4% 4% 3% 2.5% 2.0% 1.9% 2% 1% 0.5% 0% NBN Yield 10-YR Singapore 5-YR Singapore Govt Bank 12-month Fixed CPF Ordinary A/C STI Yield FTSE ST REIT Yield Govt
Slide 13: Well-positioned to deliver long-term value and growth
Well-positioned to deliver long-term value and growth 1 Critical infrastructure enabling Singapore’s Next Gen NBN Resilient business model with transparent, predictable and 2 regulated revenue stream Sole nationwide provider of residential fibre network in 3 Singapore Well-positioned to benefit from
Slide 14: Thank You
Thank You NetLinkNBN
Slide 15: Supplemental Business Information
Supplemental Business Information 15
Slide 16: 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 17: 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 18: 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