Megaport Ltd. · ASX:MP1
Megaport — Investor Presentation (March 2019)
41 slides from Megaport's investor presentation, Mar 13, 2019
Slide 1: Share Placement & Share Purchase Plan
For personal use only Megaport Share Placement & Share Purchase Plan 13 March 2019 Not for release to US wire services or distribution in the United States except to Approved US Investors Megaport Limited ACN 607 301 959 Note / Strictly Private & Confidential
Slide 2: Important Information
Important Information This presentation has been prepared by Megaport Limited (ACN 607 301 959) (Megaport or Company) in Forward-looking statements connection with an institutional placement of new fully paid ordinary shares in Megaport (Placement), a To the maximum extent permitted by law, Megaport
Slide 3: Important Information (cont'd)
Important Information (cont’d) No advertisement, invitation or document relating to the Securities has been or will be issued, or has Australia been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsewhere that The Placement and Secondary Offering will be conduc
Slide 4: Important Information (cont'd)
Important Information (cont’d) For personal use only Disclaimer The Lead Managers, together with each of their respective related bodies corporate, shareholders and affiliates, and each of their respective officers, directors, employees, affiliates, agents or advisers (each a Limited Party) have not
Slide 5: Investment Opportunity
For personal use only Investment Opportunity 55
Slide 6: The Opportunity
The Opportunity Megaport is the industry-changing, leading global Software Defined Network (SDN) that: For personal use only ● Enables Network as a Service: on-demand, elastic, self-serve capacity aligned to cloud consumption models ● Simplifies real-world networking problems and unlocks next genera
Slide 7: Capital Raising
Capital Raising Offer Details Indicative Timetable For personal use only Fully underwritten placement to exempt investors1 to raise $50 million Trading Halt and Announcement of Capital Raising 13 March 2019 via the issue of 12.5 million fully paid ordinary shares (Placement). Issue price of $4.00 pe
Slide 8: Use of Proceeds
Use of Proceeds A$ US$1 ($’000,000) ($’000,000) For personal use only Source of funds Cash position at Cash on hand $26 $19 28 February 2019 Gross placement proceeds3 $50 $36 TOTAL $76 $54 $26.4M Use of Funds ~US$19M Capital Expenditure New locations, new markets & capacity upgrades $24 $17 Innovati
Slide 9: Outlook
Outlook For personal use only ○ Megaport’s investments in its sales and go-to-market engine, growing data centre footprint and integration with more cloud onramps position the business for strong growth. ○ Further investment into technology, like Megaport Cloud Router, provide an opportunity to buil
Slide 10: Risks
Risks Breach of Information Security interconnection markets who may have significant advantages including greater name recognition, For personal use only longer operating history, existing market presence in similar or adjacent markets, lower operating costs, Megaport is exposed to the risk of a ma
Slide 11: Risks (Cont'd)
Risks (Cont’d) Ability to attract and retain employees Interruptions to operations, including infrastructure, and technology failure For personal use only Megaport depends on the skills and experience of its staff and employees. With a relatively small Megaport could be exposed to short-, medium- or
Slide 12: Risks (Cont'd)
Risks (Cont’d) Doing business outside of Australia Regulatory compliance For personal use only Megaport currently has operations in Australia, New Zealand, Singapore, Hong Kong, USA, Megaport is required to comply with the laws governing telecommunications and related sectors in each Canada, UK, Ire
Slide 13: Appendix
Appendix For personal use only Note / Strictly Private & Confidential
Slide 14: Company Highlights
Company Highlights For personal use only City Presence Cloud Regions Profit after direct 8 82 3 65 network costs1 NEW* TOTAL^ NEW* TOTAL^ Data Centre Operators Cloud Onramps 1HFY19 82 7 115 $4.8M TOTAL^ NEW* TOTAL^ $2.7M | 131% Installed Data Centres North America 1HFY18: $2.1M 24 245 Monthly Recurr
Slide 15: KPIs
KPIs For personal use only Total Installed Data Centres Total Number of Ports Total Number of Services3 221 245 2,755 3,344 6,567 8,735 30 JUNE 2018 31 DEC 2018 30 JUNE 2018 31 DEC 2018 30 JUNE 2018 31 DEC 2018 Total Number of Customers Monthly Recurring Revenue1 Annualised Revenue2 1,038 1,277 $2.0
Slide 16: Revenue Performance
Revenue Performance For personal use only Asia Pacific North America Europe GLOBAL 1HFY19 1HFY19 1HFY19 1HFY19 $5.9M $5.5M $3.8M $15.2M $2.2M | +61% $3.2M | +134% $1.0M | +34% $6.4M | +72% 1HFY18: $3.7M 1HFY18: $2.3M 1HFY18: $2.8M 1HFY18: $8.8M Growth rate is calculated using the actual $ values 16
Slide 17: Regional Revenue Distribution
Regional Revenue Distribution For personal use only 1HFY17 2HFY17 1HFY18 2HFY18 1HFY19 Asia Pacific North America Europe Revenue figures indicate - Total Revenue 17
Slide 18: Data Centre Definitions
Data Centre Definitions Installed DC Enabled DC Enabled DC For personal use only Installed DC Installed DCs: Data centres where Megaport has a Enabled DCs: Installed Data Centres plus data centres that physical point of presence with network infrastructure can be connected directly to Megaport equip
Slide 19: Financial Performance
For personal use only Financial Performance 1HFY19 19 19
Slide 20: Financial Results
Financial Results 1HFY19 1HFY18 For personal use only Consolidated Profit & Loss $’000 $’000 Revenue 15,184 8,833 Direct network costs1 (10,356) (6,744) Financial Results For six months ended 31 December 2018 Profit after direct network costs1 4,828 2,089 Revenue $15.2M, up 72% Operating Expenses (O
Slide 21: Revenue
Revenue Financial Results 1HFY19 1HFY18 $’M $’M For personal use only For six months ending 31 December 2018 Revenue of $15.2M, up 72%, driven $3.8 $5.9 $2.8 $3.7 by increased usage of services 25% 39% 32% 42% across all regions 39% from Asia Pacific $5.5 $2.3 36% from North America 36% 26% 25% from
Slide 22: Operating Costs
Operating Costs Financial Results For six months ended 31 December 2018 For personal use only 1HFY19 2HFY18 1HFY18 $’000 $’000 $’000 Average direct network cost per Direct network costs 10,356 8,520 6,744 data centre per month is $7.4K in 1HFY19 (up 4% compared to Profit after direct network costs J
Slide 23: Financial Position
Financial Position For personal use only Consolidated Financial Position 31 Dec 2018 30 June 2018 $’000 $’000 Current assets 45,275 61,355 Financial Position At 31 December 2018 Non-current assets 33,915 30,802 Total assets 79,190 92,157 Capital invested in rolling out additional data centres global
Slide 24: About Megaport
For personal use only About Megaport 24 24
Slide 25: Industry Growth Trends
Industry Growth Trends For personal use only Enterprise Cloud Service Spend ($B) Cloud Data Centre Traffic Gartner Forecasts Worldwide Public Cloud Revenue to Grow 21.4 Percent in 2018 1 ZB = 10007bytes Total of: BPaaS, PaaS, SaaS, Cloud Management & Security Services, Source: Gartner, 2018 Source:
Slide 26: Network as a Service
Network as a Service For personal use only Megaport’s Connectivity Model Traditional Connectivity Expensive locked-in pricing model Pricing Pay for what you use, no setup fees Expensive setup costs Real-time provisioning Long setup times Speed (59 seconds) (one week – several months) Capacity Elasti
Slide 27: Connecting Everyone to Everything
Connecting Everyone to Everything For personal use only 82 unique data Megaport’s unique 300+ service 1,250 + customers centre operators value proposition providers Scalable and on demand Multicloud connectivity Private and secure Flexible terms 27
Slide 28: Business Update
For personal use only Business Update 1HFY19 28 28
Slide 29: MRR Growth Trends
MRR Growth Trends For personal use only Growth in services is an indicator of overall customer usage on the network Increased services per Port drives greater MRR1 growth and increased revenue per Port MRR1 has grown to $2.7M, up 37% from June 2018 HY18 HY19 North America MRR1 has MRR1 grown to $1.0
Slide 30: Growth 1HFY19
Growth 1HFY19 What’s driving For personal use only revenue growth? Average Revenue per Port1 June 2018 Dec 2018 June 2018 Dec 2018 $720 $812 $92 / +13% GROWTH The increase in services per Port directly increases Port value Installed Data Centres Customers Ports Total Services2 +11% +23% +21% +33% 1
Slide 31: Megaport Cloud Enablement
Megaport Cloud Enablement 115 65 For personal use only Total Onramps Cloud regions - Asia Pacific SE1 - Asia Pacific - US East US (Singapore) South - Central EU - Asia Pacific SE2 (Sydney) - EU (UK) - US West Increase: 7 +6% Increase: 3 +5% - - CN-Hong Kong US West 1 (Silicon Valley) - - EU (Germany
Slide 32: Building the Network Effect
Building the Network Effect For personal use only Megaport Service Connections Ports Services 31 December 2016 31 December 2017 31 December 2018 Service Connection Types Direct Public Cloud Internet Exchange Private Connection 32
Slide 33: Megaport Cloud Router Performance
Megaport Cloud Router Performance For personal use only Total MCRs Avg Services At 31 Jan 2019 116 6.7 Non MCR Customer 10.9 MCR Customer Cloud to Cloud Networking Hybrid Cloud at Layer 3 Virtual Networking Product Launch, January 2018 to January 2019 33
Slide 34: Regional Highlights
For personal use only Regional Highlights ASIA PACIFIC | NORTH AMERICA | EUROPE 34 34
Slide 35: Asia Pacific
Asia Pacific For personal use only Average Revenue per Port APAC EBITDA Positive Total Installed Data Centres Total Number of Customers $688 +6% No. of Ports per Data Centre 59 68 529 607 30 JUNE 2018 31 DEC 2018 30 JUNE 2018 31 DEC 2018 23 +0% Port Utilisation2 Total Number of Ports Total Number of
Slide 36: North America
North America For personal use only Total Installed Data Centres Total Number of Customers Average Revenue per Port 100 111 340 482 $885 31% 30 JUN 2018 31 DEC 2018 30 JUN 2018 31 DEC 2018 No. of Ports per Data Centre 10 +23% Total Number of Ports Total Number of Services3 Port Utilisation2 812 1,10
Slide 37: Europe
Europe For personal use only Total Installed Data Centres Total Number of Customers Average Revenue per Port 62 66 251 288 $983 +3% 30 JUN 2018 31 DEC 2018 30 JUN 2018 31 DEC 2018 No. of Ports per Data Centre 10 +7% Total Number of Ports Total Number of Services3 Port Utilisation2 588 667 834 1,149
Slide 38: Board and Executive Update
For personal use only Board and Executive Update 38 38
Slide 39: Board and Executive Update
Board and Executive Update For personal use only Peter Hase London, UK ● Appointed Chief Commercial Officer 12 February 2019 ● Joined Megaport Board 22 September 2016 ● Executive Board Member as of 12 February 2019 Jay Adelson San Francisco, USA ● Appointed Non-Executive Board Member ● Commencing 1
Slide 40: Important Information
Important Information For personal use only Megaport Limited ACN 607 301 959 Nothing in this presentation should be construed as either an offer to sell or a solicitation of an Direct network costs: Revenue less direct network costs, which comprise of data centre power offer to buy or sell Megaport
Slide 41: Thank you
For personal use only Thank you ASX: MP1 On the Web Megaport.com/investor Megaport.com/newsroom Social /megaportnetworks @megaport @megaportnetwork 41 41