Slide 1: 1H24 Results
1H24 Results. Superloop Limited (ASX:SLC) Thursday, 22 February 2024
Slide 2: Disclaimer
Disclaimer. No reliance No offer to acquire Superloop shares To the maximum extent permitted by law, the information contained in this presentation is given The information in this presentation is not an offer or recommendation to purchase or subscribe for without any liability whatsoever being acce
Slide 3: Performance Highlights
Performance Highlights. Total Underlying Operating Customers3 Revenue1 EBITDA2 Cash Flow $197.6M $23.0M $23.7M 408k 32.7% YoY 83.3% YoY 102.9% 38.1% 20.0% organic conversion 1 Revenue including Other Income. Organic revenue growth % calculation excludes VostroNet contribution in Jul-Oct 2023 and MyR
Slide 4: The 3 Year 'Double Down' strategy has started strongly
The 3 Year ’Double Down’ strategy has started strongly: Record organic revenue growth, expanding gross margin and continuing EBITDA growth Group revenue1 Consumer Business revenue Record Wholesale Operating Underlying 102.9% operating up 32.7% and revenue growth of up 9.2% and new sales leverage now
Slide 5: Our value-based offers driving traffic, revenue and EBITDA margin growth
Our value-based offers driving traffic, revenue and EBITDA margin growth. Revenue1 (A#039;m) Underlying EBITDA2 from continuing operations (A#039;m) EBITDA Margin: 11.8% (+3.3% vs PCP) +32.7% YoY +83.3% YoY 24.8 197.6 23.0 174.6 148.9 136.7 113.0 13.9 12.6 6.4 6.6 46.5 49.4 6.0 1H 21 2H 21 1H 22 2H 22 1H
Slide 6: Record organic Consumer revenue and continuing growth in all segments
Record organic Consumer revenue and continuing growth in all segments. Our products are resonating with consumers and businesses facing increasing cost pressures Consumer (A#039;m) Business (A#039;m) Wholesale (A#039;m) +5.3% YoY +52.6% YoY +9.2% YoY 23.0 21.8 22.1 51.6 52.6 20.3 118.9 48.1 44.8 18.0 101.9 1
Slide 7: 40,000 net new customers
40,000 net new customers1. Record organic growth to over 400k customers Consumer Group (‘000) Consumer (‘000) • 34,100 net new customers added. Record organic +38% +48% growth half. Acquired MyRepublic Custom ers YoY Acquired MyRepublic Custom ers YoY 368.3 408.3 • Share of new nbn orders in 1H24 of
Slide 8: Superloop Brand Refresh
Superloop Brand Refresh. Consumer segment results demonstrate our marketing investment is delivering Awareness • Only two brands have grown aided awareness1 in 12 months: Superloop is the fastest growing and has doubled brand awareness • Superloop is now second in category in converting brand awaren
Slide 9: 3 Year 'Double Down' Strategy
3 Year 'Double Down’ Strategy. FY24 is year 1 of the new ‘Double Down’ strategy, execution running to plan. Margin expansion with Compelling propositions Value-led strategy, lowest Strong free-cash flow, Our Double FY23 Revenue Consumer Subs balance across segments cost operating model in balance sh
Slide 10: Products enabled by our modern platform and simple operating model
Products enabled by our modern platform and simple operating model. Strong segment revenue growth driving increased utilisation across our Tier 1 network CONSUMER BUSINESS WHOLESALE Internet, Data & nbn products Mobile & Voice Security Solutions Security & Managed Services Products Managed Wi-Fi and
Slide 11: Ownership economics
Ownership economics. Increased utilisation of available capacity is driving TO MARSEILLE SAN JOSE margin growth JAPAN LOS ANGELES HONG KONG OMAN On-Net data centres / buildings 560 HAWAII in Australia / worldwide GUAM > 100,000 Fibre Network route kilometres1 SINGAPORE Connected and contracted on-ne
Slide 12: Financial Performance
Financial Performance. 1H24 Highlights Financial Performance Segment Update FY24 Outlook Appendices
Slide 13: Positive momentum across key financial metrics
Positive momentum across Revenue and other income key financial metrics. grew across all three segments; up $48.7m (+32.7%) A#039;m 1H 23 1H 24 Change Change % Gross Margin increased by $19.2m through Revenue and other income 148.9 197.6 +48.7 +32.7% higher revenue and continued GM% expansion (increase
Slide 14: Operating leverage evident as Group gross margin % expands
Operating leverage evident as Group gross margin % expands. Gross margin growth across all segments Gross Margin (A#039;m) Gross Margin Bridge (A#039;m) GM%: 35.3% (+1.9% vs PCP) 0.8 68.7 68.7 3.9 67.4 Wholesale 13.6 59.3% (+0.4% YoY) 14.5 49.5 49.5 21.3 Business 45.3 12.8 40.5% (+4.4% YoY) 36.3 17.4 21.5
Slide 15: Efficient cost structure delivering operating leverage
Efficient cost structure delivering operating leverage. Scaling revenues across our network and utilising our offshore capabilities Opex/Revenue1 FTE by Location 1H24 vs 1H23: 2% reduction in $/FTE 21.0% 240 18.7% 18.2% 20.0% 220 198 200 15.0% 52% 51% 49% 180 175 10.0% 160 149 140 5.0% 51% 49% 48% 1
Slide 16: Cash flow and Liquidity
Cash flow and Liquidity. Cash Flow A#039;000 1H 22 2H 22 1H 23 2H 23 1H 24 Cash inflow / (outflow) from operating activities (2,748) (8,724) 10,667 32,530 23,684 Operating cash flow of $23.7m, Cash inflow / (outflow) from investing activities (103,949) 111,339 (61,318) (16,113) (11,222) representing 10
Slide 17: Segment Update
Segment Update. 1H24 Highlights Financial Performance Segment Update FY24 Outlook Appendices
Slide 18: Record growth in Consumer segment
Record growth in Consumer segment. 34,100 net new subscribers and revenue growth of $41m (+52.6%) Revenue Consumer Revenue and Gross Margin (A#039;m) Increased by 52.6% to $118.9m, driven by record nbn organic net 32.5% 28.7% 28.4% adds and strong momentum in higher speed plans. 26.1% 25.6% 24.7% 118.9
Slide 19: Successful Consumer segment marketing strategy
Successful Consumer segment marketing strategy. Delivering volume growth, higher value plans and lower acquisition costs Capturing large share of high-speed plans, Marketing investment delivering volume Challengers continue to take market share increasing ARPU and gross margin $ per user growth & im
Slide 20: Achieved Business segment 40% gross margin aspiration
Achieved Business segment 40% gross margin aspiration. Consistent revenue and margin growth Revenue Business Revenue and Gross Margin (A$’m) Increased by 9.2%, driven by increased nbn connections and strong 44.3% 40.1% 40.5% growth in Large Corporate. 38.0% 36.1% 32.4% 52.6 Gross Margin 30.1% 51.6 4
Slide 21: Record $9.1m new sales in Wholesale segment
Record $9.1m new sales in Wholesale segment. Supporting future growth in Revenue and Gross Margin Revenue Wholesale Revenue and Gross Margin (A#039;m) Record sales half with $9.1m in annualised revenue in new orders. 71.2% 67.8% Revenue increased by 5.3%, driven by increased connections on 61.7% 65.5%
Slide 22: Largest ever wholesale customer contract: AGL
Largest ever wholesale customer contract: AGL. Deal worth $31 million over 5-year term Landmark AGL win • Superloop signed contract with AGL for recently launched ‘Hosted Backhaul’ solution, worth at least $31m over the 5 year term. • Contract supports the fixed broadband needs of AGL’s overall 318,
Slide 23: FY24 Outlook
FY24 Outlook. Highlights Financial Performance Segment Update FY24 Outlook Appendices
Slide 24: Positive Outlook for FY24
Positive Outlook for FY24. Strong trading in 1H24 with guidance unchanged YTD Trading FY24 Guidance • Superloop has accelerated in 1H24, with record organic • Affirming Underlying EBITDA1 range of $49-$53m revenue growth and record subscribers added. (31%-42% increase on FY23). • Consumer broadband
Slide 25: Appendices
Appendices. Highlights Financial Performance Segment Update FY24 Outlook Appendices
Slide 26: Group Income Statement
Group Income Statement. A#039;000 1H 23 1H 24 Consumer Business Wholesale TOTAL Consumer Business Wholesale TOTAL Revenue 77,907 48,149 21,801 147,857 118,868 52,596 22,965 194,429 Cost of Goods Sold (58,632) (30,783) (8,963) (98,378) (85,073) (31,305) (9,348) (125,726) GROSS MARGIN 19,275 17,366 12,83
Slide 27: Half Year Gross Margin – Segment Breakdown
Half Year Gross Margin – Segment Breakdown. A#039;000 1H 21 2H 21 1H 22 2H 22 1H 23 2H 23 1H 24 Revenue Consumer 14,678 20,144 59,309 71,575 77,907 101,924 118,868 Business 15,900 13,433 35,734 44,788 48,149 51,631 52,596 Wholesale 15,954 15,773 17,996 20,329 21,801 22,110 22,965 Discontinued 6,733 8,1
Slide 28: Operating Expenses
Operating Expenses. Operating expenses growth rate below revenue growth A#039;000 1H 23 1H 24 % Change • Employee expenses increase of 14.2%, while employee expense as % of revenue has Employee Expenses 23,652 27,017 14.2% declined from 15.9% to 13.8%. Increase Professional fees 1,202 1,496 24.5% inclu
Slide 29: Adjusting for Non-Cash Intangible Amortisation (NPATA)
Adjusting for Non-Cash Intangible Amortisation (NPATA). A#039;m 1H 22 2H 22 1H 23 2H 23 1H 24 STATUTORY EBITDA 3.2 9.5 10.0 15.7 16.5 Depreciation & Amortisation Depreciation (10.6) (11.1) (11.7) (12.1) (12.2) Amortisation (3.0) (3.1) (6.7) (8.9) (9.0) Amortisation of Acquired Intangible Assets (8.1) (
Slide 30: Balance Sheet
Balance Sheet. A#039;m 30 Jun 23 31 Dec 23 Cash & Cash Equivalents 32.2 42.8 Current Assets 34.5 39.7 Property, Plant & Equipment 126.7 124.3 Rights and Licences 70.7 67.1 Other Intangible Assets 87.5 75.8 Goodwill From Acquisitions 166.8 166.8 Non-Current Assets 7.6 11.2 TOTAL ASSETS 525.9 527.7 Inter
Slide 31: Customer number definition
Consumer Unique customers on various access technologies such as nbn™, Superloop Fixed Wireless and mobile. A single customer with multiple services (such as broadband, VoiP and mobile) only counts as a single customer. Business Unique end business locations on various access technologies such as Su
Slide 32: Thank you
Thank you. Superloop Limited investor@superloop.com https://investors.superloop.com