Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — FY2020 Earnings Presentation
17 slides from Netlink Nbn Trust's earnings presentation, May 2020
Slide 1: FY20 Investor Presentation
FY20 Investor Presentation 1
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in NetLink NBN Trust (the “Trust” and the units in the Trust, the “Units”
Slide 3: Financial snapshot
Financial snapshot1 Revenue Cash Balance Market Cap4 S$370m S$169m S$3,527m ▲ 4.7%2 EBITDA Gross Debt Enterprise Value S$258m3 S$666m S$4,024m 4.3%2 1 FY20 2 Variance versus FY19 3 Excluding the impact of the one-time write-off of capitalised project cost of S$15.4m in relation to a discontinued I
Slide 4: Fibre is 'future proof'
Fibre is ‘future proof’ Fibre is the About 9 out Fibre Fibre supports Fibre medium of of 10 homes broadband wireless access capacity is choice for in Singapore prices are solution such scalable and delivering has a fibre lower in as WiFi can support broadband termination Singapore hotspots and futur
Slide 5: Our network
Our network 1,427,445 47, 681 1,679 End-Users Connections End-Users 5
Slide 6: A resilient business model
A resilient business model RAB Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of FY20 62.5% 8.
Slide 7: Fibre connections, NBAP and segment connections
Fibre connections Non-Building Address Points Residential Non-Residential And Segment connections1 ’000 ’000 2,000 NBAP connections 1,500 60 1,800 Segment connections 1,421 1,427 1,679 1,411 1,587 1,624 1,383 1,569 1,400 47.7 1,600 1,505 46.2 46.5 46.7 47.4 50 1,328 43.9 1,400 1,300 40 1,200 1,192 1
Slide 8: Q4 FY20 Profit & loss statement
Q4 FY20 Profit & loss statement S$’000 Q4 FY20 Q4 FY19 Variance (%) Revenue grew by 5.2% Revenue 92,442 87,862 5.2 mainly due to higher residential connections and EBITDA 55,778 62,810 (11.2) diversion revenue, partially offset by lower installation- EBITDA related revenue and ducts Margin (%) 60.3
Slide 9: FY20 Profit & loss statement
FY20 Profit & loss statement S$’000 FY20 FY19 Variance (%) Revenue grew by 4.7% mainly due to higher residential and non- Revenue 370,192 353,580 4.7 residential connections, partially offset by lower EBITDA 258,425 247,876 4.3 installation-related revenue and ducts and manholes EBITDA service reven
Slide 10: Robust balance sheet
Robust balance sheet1 S$169m S$666m S$2,907m Cash Balance Gross Debt Net Assets 2.6x 13.4x 74.6 cents Gross Debt/ EBITDA Interest Net Assets per Unit EBITDA2 Cover2 • Interest rate exposure substantially hedged • Stable capital structure with debt headroom to fund future capex 1 As at 31 Mar 2020 2
Slide 11: Attractive distribution yield with low risk
Attractive distribution yield with low risk (1) 6 5.6 5.5 5.2 5 Distribution Yield (%) 4 3 2 1.3 1 0.6 0 NetLink NBN Yield 10-YR Singapore Govt Bank 12-mth Fixed STI Yield FTSE ST REIT Yield Bond Deposit Rate Source: Bloomberg as at 31 Mar 2020 • The Trust’s distribution policy is to distribute 100%
Slide 12: Our focus for FY21
Our focus for FY21 NON-RESIDENTIAL, 01 RESIDENTIAL 02 NBAP & SEGMENT • Connect households not • Denser network – adding on fibre via initiatives such capacity, flexibility and as IMDA’s Home Access resilience programme for low-income • Prepare to support 5G households infrastructure • Connect new ho
Slide 13: Thank You
Thank You
Slide 14: Supplemental Business Information
Supplemental Business Information
Slide 15: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Pricing of NLT’s principal services are regulated by IMDA • IMDA shall hold a review of pricing terms every five years following the last price review, or at any such time as IMDA may consider appropriate (which may include a mid-term review in the third year
Slide 16: NetLink Trust's pricing for its services: RAB framework
NetLink Trust’s pricing for its services Framework for RAB Based Pricing Model Methodology for RAB based pricing model 1 1 • Base year of the RAB is 2012 RAB WACC – Assets purchased up to 2012 are valued at 2012 Cost Base prices for RAB – Assets purchased after 2012 are valued at actual cost 2 2 • N
Slide 17: Understanding the ICO pricing framework
Understanding the ICO pricing framework Illustrative Worked Example How Does EAC Work for 1 Year’s Outflow on Capex? Assuming Opening RAB of S$1Bn, WACC of 7.0% and Asset Useful Life of 10 Years EAC (S$ MM) RAB (S$MM) 300 1,000 750 200 142 142 142 142 142 142 142 142 142 142 500 34 26 18 9 65 60 54