Slide 1: ASX Announcement: Investor Day 2021 - Infra-On-Demand
ASX Announcement 11 November 2021 Investor Day 2021 - "Infra-On-Demand" Further to Superloop Limited’s (ASX: SLC) ASX release of 10 November 2021 regarding the event details for today’s Superloop Investor Day Briefing 2021, please find attached a copy of the presentation. Authorised for release by t
Slide 2: Investor Day 2021: Infra-on-Demand
Superloop Limited (ASX:SLC) Investor Day 2021: Infra-on-Demand Thursday, 11 November 2021 1
Slide 3: Disclaimer
Disclaimer No reliance No offer to acquire Superloop shares To the maximum extent permitted by law, the information contained in this The information in this presentation is not an offer or recommendation to presentation is given without any liability whatsoever being accepted by purchase or subscri
Slide 4: Superloop at a glance
Superloop at a Founded in 2014 & listed on ASX in Group revenue in excess of Group EBITDA Underlying glance 2015 $250m 1 $23-25m 1 $110m >300 >150,000 >16,000 Acquired largest Wholesale technology Consumer customers Businesses connected, private ISP Exetel businesses connected, connected, enabled &
Slide 5: Our experienced executive team
Our experienced executive team Paul Tyler Dean Tognella Mehul Dave CEO & Managing Director Group Executive, Business Group Executive, Consumer Today’s presenters Ex Nokia, NBN, Telstra Ex NBN, Uecomm/Optus, IBM Ex EnergyAustralia, Vodafone/3 Ryan Crouch Nick Pachos Luke Oxenham Paul Smith Group Exec
Slide 6: Agenda
Agenda 1 Our Purpose & Ambition Paul Tyler CEO 2 Our Infra-On-Demand Nick Pachos CCO 3 Consumer Mehul Dave GE Consumer 4 Business Dean Tognella GE Business 5 Wholesale Ryan Crouch GE Wholesale 6 Financial Outlook Luke Oxenham CFO 7 Wrap-up and Q&A Paul Tyler CEO 5
Slide 7: Challenger internet providers are on a path towards 30% market share
Challenger internet providers are on a path towards 30% market share 39% market share held by challengers in Australian Internet providers US Retail Internet4 NBN subscriber market share by rank in 20211 Doubled since 2018 45% fo 26% market share held by challengers in AU Banking2 24% 16% 7% 8% 26%
Slide 8: The conditions are in place and challengers are shaking up the Australian internet market
The conditions are in place and challengers are shaking up the Australian internet market COVID Benefits of Barriers to Challengers brought switching switch providers can now the future providers have been bypass forward are clear reduced incumbents 7
Slide 9: Our purpose: Enable better internet through competition
Our purpose: Enable better internet through competition 1 2 3 Lead Leveraging Deliver challengers to our secure superior by to 30% market Infra-on-Demand capital share platform returns 8
Slide 10: Superloop is accelerating challengers with our Infra-on-Demand
Superloop is accelerating challengers with our Infra-on-Demand Our offering Customer segments The supply The demand Our Products Connect Consumer Enable Complexity Simplicity Secure Infra-on-Demand Platform Business Our Infrastructure Access Backbone Wholesale International 9
Slide 11: The profit pool opportunity is significant across all three segments
The profit pool Estimated >$11.5b total addressable revenue market opportunity is significant across all three segments Wholesale Consumer >$5b/yr Estimated Business addressable gross margin pool Source: Company estimates based on IBIS, ACCC, broker reports & company reports. Indicative segment split
Slide 12: Our ambition
>$280m Revenue momentum ~$30m Our ambition $108m $111m >$250m 4-5% $16m $27m $95m $81m Combined market share FY20 FY21 FY22 Est. in our chosen fo markets $48m - $50m Further EBITDA momentum disciplined M&A to accelerate $23m - $25m growth Operating $18m leverage $13.5m revenue growth whilst broadly
Slide 13: Superloop Infra-On-Demand
Superloop Infra-On-Demand Nick Pachos Chief Commercial Officer 12
Slide 14: What is Superloop 'Infra-on-Demand'?
What is Superloop ‘Infra-on-Demand’ ? Providing digital infrastructure on a variable & scalable basis via software Lower cost, faster & more agile access for challengers to enter and grow without large upfront capital investments 13
Slide 15: Superloop is accelerating challengers with our Infra-on-Demand
Superloop is accelerating challengers with our Infra-on-Demand Our offering Customer segments The supply The demand Our Products Connect Consumer Enable Complexity Simplicity Secure Infra-on-Demand Platform Business Our Infrastructure Access Backbone Wholesale International 14
Slide 16: Our Tier 1 high availability network fabric connects
Our Tier 1 high availability network fabric connects: SAN JOSE LOS ANGELES TOKYO On-Net data centres / buildings 466 in Australia / worldwide TO MARSEILLE HONG KONG > 5 Tbps Indigo capacity available for sale 25 - 350 Nightly transit and SINGAPORE Gbps peering growth in 4 years > 100,000 Network rou
Slide 17: Our products meet the different needs of each customer segment
Our products meet the different needs of each customer segment Consumer Business Wholesale SASE Home Secure CyberEdge CyberEdge SECURE Amazon eero Fortinet DDoS Protection Palo Alto Networks SDWAN 360 Connect (NBNaaS) Superloop Portal Managed Wifi IP Transit ENABLE My Exetel Voice Backhaul (Domestic
Slide 18: The Superloop advantage
The Superloop advantage Tier 1 Fixed Network No legacy Automated Commercial with infrastructure IT Solutions provisioning at flexibility Economics scale Quality at a Fast to Customers can Customers can scale low price market connect fast & easily with flexibility 17
Slide 19: Our Infra-on-Demand ambition
Our Infra-on-Demand ambition 1 2 3 Maximise reach Depth Ease of use Maximise market Drive customer Enable our opportunity penetration customers through extended through best in market through our software customer reach products and services enabled telco fabric 18
Slide 20: Consumer
Consumer Mehul Dave Group Executive, Consumer 19
Slide 21: Consumer market landscape
Consumer market landscape 1 2 3 The barriers to The customer benefits We are capturing switching providers of switching providers increased share have been removed is clearer and profit 20
Slide 22: Barriers removed: over 8 million homes can switch providers in minutes
Barriers removed: over 8 million homes1 can switch providers in minutes Australian Internet providers 4 in 5 NBN subscriber market share by rank in 20212 new signups are already on NBN3 45% Superloop was 24% built to make switching 16% 7% 8% faster & easier Telstra TPG Optus Vocus Challengers (1) 8.
Slide 23: The benefits of switching are clear: fast speeds, lower price & better service
The benefits of switching are clear: fast speeds, lower price & better service nbnTM Home fast Price1 Savings2 Service3 100/20 mbps Unlimited Per month Per annum Trustpilot score $89 $252/year $95 $180/year $110 - (1) Price are for nbn fast 100/20 Unlimited plan excluding discounts as of 8th Nov 2021
Slide 24: We have the fundamentals in place to accelerate market share and profitability
We have the fundamentals in place to accelerate market share and profitability Leveraging Two brands Multi Digital-first Superloop’s targeting product support, with Infra-on-Demand different customer offering serving tech experts platform segments Australian homes on hand 23
Slide 25: Two brands targeting different customer segments
Speed Safety Two brands targeting Award winning different customer experience customer segments +40 3.8+ 20% Net Trustpilot Sales from Promoter Score review score customer referrals 24
Slide 26: Our multi-product offering serves the needs of all Australian homes
Our multi-product offering serves the needs of all Australian homes Automated cross-selling program driving increase in average product holding NBN Fibre Access Uniti, RedTrain Fixed Wireless Home Phone (VoIP) 2.0 target Prepaid Mobile 1.4 1.0 Mobile Broadband Home Wireless Broadband Home Secure FY2
Slide 27: Digital-first support, with tech experts on hand
Our support centres Australian support team Degree-qualified engineers Award-winning customer service Digital-first support, with tech experts Our Digital Assets on hand My Exetel customer portal app ExeFix WiFi diagnostic tool Online resources 26
Slide 28: Our service turns customers into advocates
Our service turns customers into advocates 27
Slide 29: The incremental cost of delivering services to new customers is now marginal
The incremental cost of delivering services to new customers is now marginal Lower network Reduced customer costs per customer support cost-to-serve With the build complete, 65%1 reduction in customer Tier 1 network delivers marginal support cost per subscriber. incremental cost of customer growth.
Slide 30: Clear subscriber & revenue growth momentum
Clear subscriber & revenue growth momentum 152k $25.4m 5x Consumer1 4x revenue $13.7m Subscriber1 98k $11.7m growth rate $6.8m Q1 FY21 Q1 FY22 2.2% 3x Share of NBN2 0.7% connects 54k 1.5% 32.5k 0.7% Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 (1) FY22 Exetel revenue and subscribers reflect new Superloop Exetel c
Slide 31: Primed for investment in marketing to accelerate growth
Primed for investment in marketing to accelerate growth Big Data / AI driven churn Value-added services Better customer risk prediction capability maximisation experience & self help 1.5% Consumer subscriber, 1 5% current ARPU & margin growth market share market share ambition Right plans. Right pri
Slide 32: Our Consumer ambition
Our Consumer ambition 1 2 3 Grow market share 2+ products per 25%+ in line with group customer on average gross margin aspiration 31
Slide 33: Business
Business Dean Tognella Group Executive, Business 32
Slide 34: Business market landscape
Business market landscape 1 2 3 Businesses Everything Rapid can now bypass is in the technology the incumbents cloud change 33
Slide 35: Superloop + Exetel deliver a strong foundation in all business segments
Small Medium Large Superloop + Business Corporate Corporate Exetel deliver a 0-19 20-200 >200 employees employees employees strong foundation in all business Large segments 18% Medium >11k >5k 400+ Small Broadband Fibre data 64% customers 18% services services Total Superloop FY21 Business Revenue¹
Slide 36: Business customers bundling more products with Access
Business customers bundling more products with Access NBN TC2 and Enterprise Ethernet for Business & Enterprises Significant cross-sell Internet Access opportunity in medium and large corporate segment Dark Fibre Fixed Wireless Access Percentage of customers Third Party Access with 2 or more products
Slide 37: Superloop has what it takes to win in all three business subsegments
Superloop has what it takes to win in all three business subsegments Small business Medium corporate Large corporate Focus Focus Focus Marketing & Capture network evolution Aggressive cross sell product bundles to SD-WAN + Security Key Metrics Key Metrics Key Metrics Channel expansion Channel partne
Slide 38: Value + service without compromise
NRMA’s Thrifty Car Rental embraces Superloop fibre connectivity "Together with Superloop, we've ensured Thrifty has the technology platform in Value + service place to give ourselves the flexibility and without compromise responsiveness to meet our customers’ evolving customer service expectations" Co
Slide 39: Our business ambition
Our business ambition 1 2 3 Above market growth 60% of 40%+ & market leading new orders gross retention through channel margin 38
Slide 40: Wholesale
Wholesale Ryan Crouch Group Executive, Wholesale 39
Slide 41: Wholesale market landscape
Wholesale market landscape 1 2 3 Challengers Challenger Customers want can now bypass providers are infrastructure incumbents gaining market share on demand 40
Slide 42: Wholesale revenue growth drivers
Wholesale revenue growth drivers Existing customers increasing bandwidth Wholesale & International revenue Existing challengers (excl. Singapore & Hong Kong domestic revenues) selecting Superloop over incumbents New entrants to the market (e.g. white $33.6m label) $28.7m $19.0m Evolution of Superloo
Slide 43: We selected Superloop to be our partner for NBN aggregation services
“We selected Superloop to be our partner for the provision of NBN aggregation services due to the state of the art Superloop Connect platform combined with the strength of their underlying network.” Rene Sugo Chief Executive Officer Symbio 42
Slide 44: Wholesale customers want infrastructure on demand
Wholesale customers want infrastructure on demand, to supercharge their own offer to end customers Wholesale customers The Superloop advantage Consumer & Sales & Access Enabling Domestic International World Business end service networks platforms network network Wide Web user Provider Value Chain Cu
Slide 45: Wholesale bundling more products with Access
Wholesale bundling more products with Access NBN Access Backhaul / Aggregation / Virtual Wholesale customers with an access alignment procure (on average) 3+ Superloop NBN Enterprise Ethernet product groups for Business & Enterprises Internet Access & IP Transit Including DDoS protection Australian
Slide 46: Our offer to challengers
Our offer to challengers Commercial Network & Transparency flexibility automation & trust Complete NBN & Infrastructure, capacity and Visibility of Fixed Wireless solutions performance on demand performance & metrics Market competitive Underpinned by our NBN plan commercial offer resilient national n
Slide 47: Our Wholesale ambition
Our Wholesale ambition 1 2 3 Wholesaler of Increase 70%+ choice for more multi-product gross challengers holding margin 46
Slide 48: Our financial outlook
Our financial outlook Luke Oxenham, Chief Financial Officer 47
Slide 49: Our financial ambition is to create long term value for shareholders
Our financial ambition is to create long term value for shareholders ‘Operating’ leverage Growth Discipline Ambition Ambition Ambition Leverage our Drive profitable Deliver superior owned network growth across all capital returns and infrastructure 3 of our customer through disciplined economics segme
Slide 50: Segment reporting changes designed to provide simplicity, focus and transparency
“Through the eyes of management” approach to financial reporting Acquisition of Exetel Segment reporting changes designed to Divestment of Hong Kong, Singapore provide simplicity, & CMS simplifies our business focus and transparency Simplification, focus and transparency Market & segment focus to maxim
Slide 51: Consumer ambition
Consumer segment metrics Total consumer subscribers (#’s) 147k Consumer 30k ambition FY20 FY21(1) Ambition(2) Revenue aspiration consistent with overall group wide market Total revenue share ambition $116.5m 25%+ $20.6m Gross Margin FY20 FY21(1) Ambition(2) (1) FY21 figures represent pro forma Superl
Slide 52: Business ambition
Business segment metrics Total business revenue Business ambition Revenue aspiration consistent with overall group wide market share ambition $96.3m 40%+ $30.8m Gross Margin FY20 FY21(1) Ambition(2) (1) FY21 figures represent pro forma Superloop Group as if it included Exetel for Revenue Ambition the
Slide 53: Wholesale ambition
Wholesale segment metrics Wholesale revenue Excluding Hong Kong & Singapore sale Wholesale ambition Revenue aspiration consistent with overall group wide market share ambition $28.7m $33.6m 70%+ Gross Margin FY20 FY21(1) Ambition(2) (1) FY21 figures represent pro forma Superloop Group as if it includ
Slide 54: Allocation of revenue by new operating segment
Allocation of revenue by new operating segment FY 2020 FY 2021(1) TOTAL TOTAL Revenue $M Previous Consumer Business Wholesale Ongoing D’Continued Previous Consumer Business Wholesale Ongoing D’Continued Core Fibre 38.0 - 2.6 20.9 23.5 14.5 46.5 - 5.2 28.1 33.3 13.3 Design & Fibre Construction 1.4 -
Slide 55: Return profile of the business set to benefit from significant operating leverage
Return Profile of the business set to benefit from significant FY21 Free operating leverage Cash Flow Breakeven Significant Free Cash Flow $110.7m Generation Pre FY21 Network Cost >$300m capex $14.8m plus acquisitions $34.0m FY21(1) FY26(2) Operating Expenditure Capital Expenditure Reported Revenue Reve
Slide 56: Wrap up and Q&A
Wrap up and Q&A Paul Tyler, Chief Executive Officer 55
Slide 57: FY21 was a big step forward, but just the start
Leverage assets & competitive advantage FY21 was a big Win and retain market share step forward, z but just the start Accelerate EBITDA growth & of our accelerated shareholder value creation growth strategy Consider M&A and capital recycling opportunities Attract and retain talent to execute strateg
Slide 58: In Summary
Conditions are in place for challengers to shake up the telco market in Australia Our ambition is to fuel challenger providers towards 30% collective share Our ‘Infrastructure-on-Demand’ platform is what sets Superloop apart z In Summary 2021 was a transformative year to accelerate our growth in all
Slide 59: Thank You Contact Details
Thank You Contact Details investor@superloop.com https://investors.superloop.com 58 58 FY20 Update 58