NetLink NBN Trust · SGX:CJLU
NetLink NBN Trust — AFS Technology Investment Webinar (January 2021)
16 slides from NetLink NBN Trust's conference presentation, Jan 20, 2021
Slide 1: AFS Technology Investment Webinar
AFS Technology Investment Webinar 20 January 2021
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 S$181m 2.5%2 S$181m S$3,800m Revenue Cash Balance Market Capitalisation3 S$140m 3.4% 2 S$666m S$4,285m EBITDA Gross Debt Enterprise Value 1 H1 FY21 2 Variance versus H1 FY20 3 Based on the unit price of S$0.975 at 30 Sep 2020 3
Slide 4: Fibre is 'future proof'
Fibre is ‘future proof’ #1 PREFERRED Only means of fixed broadband delivery in Singapore HIGH PENETRATION Over 90% residential penetration rate LOW PRICES Fibre broadband prices are lower in Singapore than many other countries CRITICAL INFRASTRUCTURE Fibre supports last-mile wireless access solution
Slide 5: Our network
Our network 1,437,360 1,847 End-Users 47,558 Connections End-Users 5
Slide 6: A resilient business model
A resilient business model RAB Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of H1 FY21 65.3%
Slide 7: Fibre connections
Fibre connections Non-Building Address Points Residential Non-Residential And Segment connections1 ’000 ’000 NBAP connections 1,500 50 47.7 47.6 2,000 46.2 47.0 Segment connections 1,847 1,427 1,428 1,437 1,772 1,800 1,400 1,679 1,587 1,328 40 1,600 1,300 1,400 30 1,200 1,200 1,000 IPO Projection IP
Slide 8: H1 FY21 Profit & loss statement
H1 FY21 Profit & loss statement S$’000 H1 FY21 H1 FY20 Variance (%) Revenue for H1 FY21 was Revenue 181,465 186,113 (2.5) lower by 2.5% mainly due to lower installation-related revenue, diversion revenue EBITDA 139,734 135,186 3.4 and ducts and manholes service revenue, partially offset by higher re
Slide 9: Robust balance sheet
Robust balance sheet1 S$181m S$666m S$2,856m Cash Balance Gross Debt Net Assets 2.5x 13.8x 73.3 cents Gross Debt/ EBITDA Interest Net Assets per Unit EBITDA2 Cover2 • Interest rate exposure substantially hedged • The Group entered into a one-year extension for the outstanding term loan of S$510.0m t
Slide 10: Attractive distribution yield with low risk
Attractive distribution yield with low risk Distribution per Unit Distribution Yield (%) (Singapore cents) (2) 5.05 5.2%(2) 4.88 4.6% 4.3% 3.24 2.53 0.9% 0.4% FP18 (1) FY19 FY20 H1FY21 NetLink 10-YR Bank STI FTSE NBN Yield SG Govt 12 mth Yield ST REIT Bond FD Rate Yield Bloomberg as at 30 Sep 2020 (
Slide 11: Our focus for FY21
Our focus for FY21 • Connecting new homes • Improving service and households that are provisioning QoS not on fibre via initiatives such as IMDA’s Home Access programme for low-income households • Adding capacity, • Making NBAP easier flexibility and resilience to and faster to deploy create a dense
Slide 12: Thank You
Thank You
Slide 13: Supplemental Business Information
Supplemental Business Information
Slide 14: 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 15: NetLink Trust's pricing for its services
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 16: 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
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