Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — H1 2020 Earnings Presentation
19 slides from Macquarie Technology's earnings presentation, Feb 27, 2020
Slide 1: Half Year Results 2020
Half Year Results. 2020. 26 February 2020
Slide 2: Key Business Highlights
22 Key Business Highlights. ● Eleven consecutive halves of revenue and EBITDA growth ● EBITDA CAGR of 18.5% over the last 3 years (excluding AASB16 13.3%) (g A13.3%) ● All Business Units grew revenue with particularly strong growth in Cloud and Government ● Government signed agreement with ATO to pr
Slide 3: Business Summary
3 Business Summary. 54% 31% 46% 69% H120 Revenue EBITDA Revenue EBITDA Macquarie Telecom Group
Slide 4: Business Highlights Summary
4 Macquarie Telecom Macquarie Cloud Services ● #1 in Asia Pacific for SDWAN ● Continues to grow successfully leveraging the Hybrid IT ● Half of Macquarie customers successfully migrated to NBN megatrend ● Strong cross sell of Cloud Services solutions into Telecom’s ● Managed Azure Practice developin
Slide 5: A Differentiated Offering
A Differentiated Offering. Macquarie Telecom Group | Half Year Results 2020
Slide 6: +71 NPS
6 Company purpose. Customer focus. To make a difference in markets • Our continued focus on providing a great customer experience is core to our service that are underserved and offering & differentiation overcharged. • Macquarie’s net promoter score (NPS) is +71 for Q2 FY20 – Australian leading NPS
Slide 7: Quality Infrastructure
Quality Infrastructure. Macquarie Telecom Group
Slide 8: Data Centre Portfolio expansion
8 Data Centre Portfolio expansion. Intellicentre 3 East ● Construction commenced in January 2020 Intellicentre 3 ● Initial build capex $82-$85M (excluding East additional power) comprising of: – MEP and fit out $45M Intellicentre 2 – Initial Capacity 2.4MW (existing) ● Modular fit out based on custo
Slide 9: Macquarie Park Campus expansion from 10MW to 43MW total load
9 Macquarie Park Campus expansion from 10MW to 43MW total load. ● Modularised build for core and shell Intellicentre 3 East phases Intellicentre 3 East ● Carrier Neutral Intellicentre 3 West Intellicentre 3 East & West ● Designed for global hyperscalers, enterprise and Government Intellicentre 2 cus
Slide 10: Our private cloud is a key source of data centre utilisation
Our private cloud is a key source of data centre utilisation 10 and generates higher revenue per rack. Underlying infrastructure anonymised as we sell outcome focused solutions Macquarie Telecom Group
Slide 11: Financials
Financials. Macquarie Telecom Group | Half Year Results 2020
Slide 12: Financial Results
12 Financial Results. 1H20 pre 1H20 v 1H19 % change pre 1H20 post Impact of $m 1H19 2H19 AASB16 pre AASB16 AASB16 AASB16 AASB16 Total Revenue Telecom 70.4 70.4 71.8 1.4 2% 71.8 0.0 Hosting 53.0 57.6 62.7 9.7 18% 62.7 0.0 Inter-segment (2.4) (2.4) (2.6) (0.2) (2.6) 0.0 Total Revenue 121.0 125.6 131.9
Slide 13: Group Financial Performance
13 Group Financial Performance. • Over the last 3 years: – Revenue CAGR of 7.2% – EBITDA CAGR of 18.5% (excluding AASB16 13.3%) – EBITDA margin improved from 17.7% (1H17) to 24.0% (1H20) (excluding AASB16 20.9%) • Impact of AASB16 increases EBITDA by $4.0m (as per graph) Macquarie Telecom Group | Ha
Slide 14: Financial Performance – Hosting
14 Financial Performance – Hosting Hosting Revenue ($m) 62.7 57.6 53.0 49.5 44.1 46.1 2H17 1H18 2H18 1H19 2H19 1H20 • Over the last 3 years: − Revenue CAGR of 18.3% − EBITDA CAGR of 30.8% (excluding AASB16 24.0%) − EBITDA margin improved from 25.6% (1H17) to 34.6% (1H20) (excluding AASB16 29.5%) • H
Slide 15: Financial Performance - Telecom
15 Financial Performance - Telecom • Over the last 3 years: − Revenue CAGR of 0.2% − EBITDA CAGR of 2.1% (excluding AASB16 (0.7)%) • Telecom EBITDA margin of 13.8% (excluding AASB16 12.7%) • Significant investment in staff to facilitate migration to the nbn • Impact of AASB16 increases EBITDA by $0.
Slide 16: Growth Capex
16 Growth Capex. Customer Growth Maintenance Capex. Capex. ● Growth Capex is for the building of new ● Customer Growth Capex is for ● Most of the remaining Capex is data centre capacity, increased power additional cabling, racks, infrastructure refresh and supply, new technology creation & servers &
Slide 17: Balance Sheet & Cash Flows
17 Balance Sheet & Cash Flows. $m FY19 1H20 pre AASB16 1H20 post AASB16 ● Cash and cash equivalents of $6.9m. First draw down Cash and cash equivalent s 17.1 6.9 6.9 of $7m in Oct19 with remaining undrawn debt facility Other current asset s 29.5 35.1 34.6 of $93m with a syndicate of banks executed t
Slide 18: Outlook
18 Outlook. ● Underpinned by strong sales growth, full year FY20 EBITDA is expected to be approximately $63 to FY 20 $m $66 million ($55 to $58 million pre AASB16) ● Telecom continue to win customers from legacy EBITDA 63 - 66 data and IP carriers with our nbn and SD WAN EBITDA pre AASB16 55 - 58 so
Slide 19: Disclaimer
Disclaimer. No express or implied warranty is given as to the accuracy or completeness of the information in this document or any corresponding presentation. This document may contain forward looking statements that, while used in good faith, reflect Macquarie Telecom Group Limited’s current intenti
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