Slide 1: FY24 Full Year results
FY24 Full Year results 26 August 2024
Slide 2: We acknowledge
We acknowledge Aussie Broadband acknowledges Aboriginal and Torres Strait Islanders as the First Australians, and their role as the original communicators, connectors, and carers of the land and waters across Australia. We pay our respects to Elders past and present. We commit to working respectfull
Slide 3: Agenda
Agenda Full-Year results to 30 June 2024 Our Speakers 1. FY24 highlights Phillip Britt 2. Group financial results Co-Founder & Group Managing Director 3. Symbio Brian Maher CEO of Aussie Broadband 4. Segment results Michael Omeros CEO of Symbio 5. Fibre infrastructure update Andy Giles Knopp 6. FY25
Slide 4: Why Aussie Broadband Group
Why Aussie Broadband Group Growth drivers for long-term shareholder return Loved by Diversified Strategic Strong customers revenue streams infrastructure financials Diversified business with The Aussie owned Fibre Roy Morgan’s Most Trusted Robust balance sheet and multiple growth pathways network ex
Slide 5: Aussie Broadband Group: Our operating segments
Aussie Broadband Group Our operating segments Enterprise & Residential Business Wholesale Symbio Government • Enterprise grade • Communications • Residential broadband broadband & mobile • Wholesale Voice Platform as a Service • Business grade Focus / broadband & mobile • White label • Mobile • Clou
Slide 6: Aussie Broadband Group's evolution
Aussie Broadband Group’s evolution Sustainable earnings and consistent year on year growth Revenue Gross Margin 1200 51% CAGR 400 68% CAGR 40.0% 1000 35.4% 36.1% Gross Margin % 800 300 30.0% $ Millions 29.5% $ Millions 28.1% 600 200 23.5% 20.0% 999.7 360.5 400 788.0 278.6 546.9 100 10.0% 200 161.4 3
Slide 7: FY24 highlights
FY24 highlights Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 8: Strong FY24 results across the Group
Strong FY24 results across the Group In FY24 Aussie Broadband Group: Delivered solid Group financial results with the Group hitting the top end of EBITDA guidance at $120.5m and generating strong operating cashflow Continued to execute on the Group’s focus on diversification of earnings across multi
Slide 9: Aussie Broadband Group at a glance
Aussie Broadband Group at a glance 7.4% Market share of on-net NBN 1,721 km 503 Connected buildings 186,800 Mobile services services1 Aussie Fibre >2,000 across the Group2 network Able to connect Australia’s most 700,879 trusted telco Broadband connections 7.5m 8.6bn 34th overall most trusted brand
Slide 10: Group financial results
Group financial results Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 11: FY24 financial statutory highlights
FY24 financial statutory highlights Strong growth through effective execution of the Group’s strategy $1bn 36.1% $120.5m $128.2m Revenue Gross Margin % Underlying Op Cash Flow Up 26.9% Up 0.7 ppt EBITDA1 Up 54.1%2 Up 34.5% Fully franked dividend of 4 cents per share 1. Underlying EBITDA includes sha
Slide 12: Cash flow & leverage
Cash flow & leverage Strong balance sheet, well positioned to support ongoing growth Operating cash flow FY23 FY24 Change Operating cash flow (before interest and tax) $121.9m $128.2m 5.2% Normalised operating cash flow1 $83.2m $128.2m 54.1% Normalised cash conversion ratio2 92.9% 106.5% 13.6 ppts N
Slide 13: Capex
Capex Investment in growth and platforms FY24 Capex profile1 FY24 highlights 50 $47.4m Total 2.0 Lifecycle Replacement • Capex spend focused on growth and core 45 platforms across the group. Investment to 8.1 Customer Growth ensure competitiveness and operational 40 efficiencies 35 6.6 • Continued f
Slide 14: Capital management approach
Capital management approach Objectives Principles Maximise 1. Committed to balance sheet settings consistent with net leverage shareholder value ratio of 1.75x – 2.50x 2. Ongoing business as usual Capex (FY25 guidance $55m - $60m) Maintain 3. Invest in growth - both organic and M&A financial flexibi
Slide 15: Segment performance
segment performance Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 16: Symbio
Symbio h Aussie = Broadband THE ACTUAL AUSSIE WAY
Slide 17: Symbio
Symbio1 Meets top end of pre-acquisition guidance with further growth forecast in FY25 Revenue1,2 1H 2H Gross Margin1,2 1H 2H 250 ▼0.5% ▲4% 100 200 80 108.3 104.2 48.3 $ Millions 150 48.4 FY24 highlights $ Millions 60 100 40 • Symbio contributed $12m4 in EBITDA in FY24 on an 50 103.5 106.7 20 45.6 4
Slide 18: Symbio at a glance
Symbio at a glance Trusted by the world's largest cloud communications providers Capabilities FY25 focus • APAC coverage – multi regional coverage for voice and • Grow numbers and minutes on our domestic1 networks messaging in key markets throughout Asia and Oceania • Grow SIOs in our Telecommunicat
Slide 19: Symbio synergies upgraded
Symbio synergies upgraded Additional synergies targeted by the end of FY26 Executed synergies Future synergies Synergies to be delivered by end of FY25 ü ASX listing costs o Aligning team structure with future go to market strategy $4.7m ü Board costs o Margin improvement by leveraging ü Senior lead
Slide 20: Aussie Broadband
Aussie Broadband Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 21: Residential
Residential Continued double digit YoY growth Revenue 1H 2H Gross Margin 1H 2H 700 200 ▲16% ▲14% 600 500 150 99.6 FY24 highlights 301.2 $ Millions $ Millions 400 84.4 265.7 100 • Achieved double digit revenue growth of 14.3% 300 with connection growth of 12.7% 200 50 100 246.1 283.9 75.4 85.8 • NBN
Slide 22: Buddy Telco trading update
Buddy Telco trading update Successful launch • Buddy Telco launched in July with a strong start • Strong marketing focus on establishing Buddy in FY25. The group reaffirms expected spend of $10m in OPEX in supporting the set up of Buddy • Management expect increased scaling of growth in the next six
Slide 23: Business
Business Consistent sustainable growth Revenue 1H 2H Gross Margin 1H 2H 120 50 ▲9% ▲5% 100 40 FY24 highlights 80 22.4 • Increase in revenue of 8.5% YoY driven by strong $ Millions 49.0 30 21.9 $ Millions 46.2 60 connection growth of 19.0% YoY 20 40 • Business customers growth of 17% 20 43.2 48.0 10
Slide 24: Enterprise & Government
Enterprise & Government Increasing deal size and revenue Revenue 1H 2H Gross Margin 1H 2H 100 50 ▲3% ▲2% FY24 highlights 80 40 44.2 46.3 22.8 23.6 • Segment continued to retain existing strategic $ Millions 60 30 partnerships, with resigning of existing customers $ Millions 11% HoH retaining $1m in
Slide 25: E&G customer highlights
E&G customer highlights 400 new customers in FY24 25
Slide 26: Wholesale
Wholesale Refocusing on MSP partnerships and high-margin voice Revenue 1H 2H Gross Margin 1H 2H FY24 highlights 200 60 ▲64% • Increase in revenue of 59.1% compared to FY23 ▲59% 50 150 • NetSIP monthly minutes growth of 18.1%, driven by the 40 28.3 NetSIP’s platforms superior customer experience $ Mi
Slide 27: Fibre infrastructure update
Fibre infrastructure update 27
Slide 28: Aussie Fibre
Aussie Fibre Providing margin benefit of $20m+ and setting the foundations for further growth • 1,721km of owned Aussie Fibre deployed, with 288 km completed in FY24, driven by customer demand • Aussie Fibre enables greater levels of control, margin and ability to scale quickly 503 Aussie Fibre 158
Slide 29: Aussie Fibre
Aussie Fibre Owned Aussie Fibre deployed across all major cities and growth corridors, future proofing growth channels Note: Network maps show Aussie Broadband owned and installed fibre and exclude routes where Aussie Broadband has leased fibre or used swap arrangements 29
Slide 30: FY25 focus and outlook
FY25 focus and outlook Aussie Broadband THE ACTUAL AUSSIE WAY
Slide 31: Areas of focus
Areas of focus Drive growth, diversification, differentiation and productivity Focus on growth in fully Continue to diversify brand Leveraging technology Protect our customer owned infrastructure and product offerings service advantage • Expanding and growing • Multi-brand strategy of • Focus on del
Slide 32: M&A update
M&A update Continue to evaluate accretive M&A opportunities SLC stake Values • Group remains focused on organic growth, and will pursue acquisition opportunities that align with our strategic objectives, should they arise SLC 11.99% stake - cost $57.1m SLC shareholding update Market value at 23 Augu
Slide 33: FY25 outlook & guidance
FY25 outlook & guidance Continuing momentum in core growth while investing in growth opportunities FY24 FY25 guidance Underlying EBITDA1 $120.5m $135m to $145m Underlying EBITDA after n/a $125m to $135m Buddy investment Capex2 $47.4m $55m to $60m Trading update • For the quarter to date3, net broadb
Slide 34: The pathway to FY25 EBITDA
The pathway to FY25 EBITDA EBITDA guidance range $125m to $135m 160 150 Guidance Range 21% YoY $135m to Guidance 140 137.0 growth3 $145m Range (10.0) $125m to 130 13% YoY $135m growth3 $ Millions 4.0 120.0 120 (21.0) 110 100 90 80 FY24 P/F Origin Impact Costs Baseline FY25 EBITDA Buddy FY25 EBITDA E
Slide 35: Key takeaways
Key takeaways Continuing momentum in core growth while investing in growth opportunities Aussie’s core business foundation remains strong and continues to grow YoY We are well positioned to leverage our diversified product offering to drive further growth Our core financials remain strong, with focu
Slide 36: Appendices
Appendices h Aussie = Broadband THE ACTUAL AUSSIE WAY
Slide 37: Our evolution
Our evolution Leading diversified communications and technology provider Over – 20 years built a market- Over – 15 years built a market- Over - 20 years built a leading Leading diversified communication leading telco business leading business and enterprise communications software company and techno
Slide 38: Aussie's commitment to ESG outcomes
Aussie’s commitment to ESG outcomes Committed to continual improvement Environmental Social Governance Carbon footprint Addressing social Rigorous governance • Carbon neutral for scope 1 challenges • Aligned Constitution's and 2 emissions • Committed to Pledge 1% purpose with B-Corp • Scope 3 emissi
Slide 39: Profit & Loss
Profit & Loss FY23 FY24 Change % $m $m Revenue 788.0 999.7 26.9% Network & hardware expenses (509.4) (639.2) 25.5% Gross Profit 278.6 360.6 29.4% Gross Margin % 35.4% 36.1% 0.7 ppt Employee expenses (123.7) (164.5) 33.0% Marketing expenses (33.0) (42.0) 27.3% Administration and other expenses (32.3)
Slide 40: Cashflow
Cashflow FY23 FY24 Change $m $m Receipts from customers 866.6 1,095.0 26.4% Payments to suppliers & employees (744.7) (966.8) 29.8% Operating cash flows before interest and tax 122.0 128.2 5.1% Net Interest Payments (7.1) (7.9) 11.3% Tax payments 1.9 (0.1) (105.3%) Operating cash flows after tax and
Slide 41: Balance Sheet
Balance Sheet FY23 FY24 Change $m $m Cash and cash equivalents 75.1 213.5 184.3% Trade and other receivables 43.4 94.8 118.4% Plant and equipment 91.8 130.8 42.5% Right-of-use assets 56.5 49.7 (12.0%) Intangibles 398.1 609.8 53.2% Other assets 28.7 139.2 385.0% Total assets 693.6 1,237.8 78.5% Trade
Slide 42: Pro-forma segment results and connections
Pro-forma segment results and connections Segment results1 FY24 pro-forma Residential $m Business $m E&G $m Wholesale $m Symbio $m Group Total $m Revenue 585.1 97.0 88.0 159.7 210.9 1,140.7 COGS (399.7) (52.9) (42.5) (106.6) (113.6) (715.3) Gross Margin 185.4 44.0 45.6 53.1 97.4 425.5 Gross Margin %
Slide 43: Thank you
Thank you Aussie Broadband Limited Investors contact: Gurjit Mann – investors@team.aussiebroadband.com.au Authorised for release by the Aussie Broadband Board 43
Slide 44: Important notice and disclaimer
Important notice and disclaimer This presentation is for information purposes only and it is not financial product or Investors should also be aware that certain financial data included in this presentation investment advice. The presentation is not intended to be comprehensive or provide including