Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — Macquarie Telecom Group — FY2010 Earnings Presentation
26 slides from Macquarie Technology's earnings presentation, Aug 26, 2010
Slide 1: Full Year Results 2010
For personal use only Macquarie Telecom Group Ltd Full Year Results 2010 David Tudehope & Michael Simmonds 26 August 2010
Slide 2: Strategic objective
Strategic objective For personal use only To be the leading provider of hosting and telco services to Australian business and government customers through the delivery of operational and service excellence. 2
Slide 3: Macquarie Telecom at a glance
Macquarie Telecom at a glance Macquarie Telecom delivers a range of Hosting and Telco services specifically to the For personal use only business and government market ! "# ! $ ! $ ! $ ! % ! ! ! 3
Slide 4: Market leaders in high-growth industry
Market leaders in high-growth industry For personal use only • & Established, leadership • & & ' position ' ' & ' ( ) ! * + ,--. – [26] year heritage, ASX-listed since 1999 – X customers, Y employees • & * / $ – Industry vision •& leadership, track-record of execution " Outstanding market • • + *+ !
Slide 5: 1. Key highlights
For personal use only 1. Key highlights 1 / , 3 4 ! 5 ( 6 $ 7 89 5
Slide 6: For personal use only
/ For personal use only : 3 ; <*" = > ?,2 - ,6@ ; <*" > ?14 4 6.@ ; + # > ?1- 5 A1@ ; <#(> ?- 6- 72@ ; ,- $ ; ( ,- $ ; ' % ?67 4 * Excludes results from discontinued operations : ; B ; " ! ! ' ' ; = ( 6
Slide 7: 2. Financial performance
For personal use only 1 / ,2. Financial 3 performance 4 ! 5 ( 6 $ 7 89 7
Slide 8: For personal use only
< For personal use only C< D ? 3E-2 3E1- ' B B ,51 7 ,47 - C, 4@ D 241.6 236.0 243.6 234.7 <*" = ,4 , ,2 - ,5 2@ <*" .5 14 4 6. 4@ +# 71 1- 5 A- .@ <#( C D ,2 A 6- 1 72 -@ FY07 FY08 FY09 FY10 <*" = ? +# ? 29.0 10.4 23.2 6.1 13.7 11.1 -0.9 -3.4 FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 8
Slide 9: For personal use only
( ! For personal use only ? 3E-2 3E1- ! ' ! ,A 7 ,. 2 30.0 ' ! " C14 -D C7 .D ' ! 3 C1 .D C1 1D 25.0 + " FC= D ' 1, . ,1 - 20.0 ' 9 ' <% ,, 7 46 4 15.0 ' ' 9 ' <% 46 4 67 4 10.0 5.0 - FY07 FY08 FY09 FY10 $m 14.3 18.8 27.6 28.9 9
Slide 10: Balance sheet and cash flow
* For personal use only $m FY09 FY10 ' % 46 4 67 4 • Cash balance of $56.3 million / = 9 & "# ,5 . ,1 4 • Strict working capital 46 2 45 1 management 27 - 111 7 • Strong Balance Sheet with no ' 4A 7 45 1 debt supports strategic growth opportunities ( G = 1. -4 G 6. .- • Ordinary dividend of 20 cps f
Slide 11: Revenue growth in Hosting continues
Revenue growth in Hosting continues (Excludes revenue from discontinued operation) For personal use only 50 • Hosting revenue up 31.3% on pcp to $44.5 million as it continues to experience strong growth with 40 record sales orders in FY10 30 • Telco revenue down 7.8% $m primarily due to reduction in
Slide 12: Gross margin grows, Opex is stable
Gross margin grows Opex is stable For personal use only (Excludes results from discontinued operation) Gross margin grows in both $ and % terms Opex as a % of gross margin declines 120.0 60.0% 90.0 88.0% 80.0 86.0% 100.0 50.0% 84.0% 70.0 82.0% 80.0 40.0% 60.0 80.0% 50.0 60.0 30.0% 78.0% 40.0 76.0% 4
Slide 13: Hosting & Telco EBITDA grows
Hosting & Telco EBITDA grows (Excludes results from discontinued operation) For personal use only 22 • EBITDA profit of $29 million up 17 25.0% on pcp 12 • Hosting EBITDA up 55% on pcp to $15.2 million $m 7 • Hosting now contributes 43% of 2 business profitability -3 • Telco EBITDA up 5.4% on pcp pr
Slide 14: EBITDA and EBIT increase
<*" = 9 <*" ! C< D For personal use only EBITDA: 25% Increase EBIT: 58% Increase 29.0 30 13.3 25 23.2 14 20 8.4 9 13.7 $m 15 $m 11.1 4 10 -1 5 -1.5 - -6 -4.0 FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 14
Slide 15: Agenda
Agenda For personal use only 1. Group highlights 2. Financial performance 3. 4 Strategy and outlook ! 4. Strategy 5. Outlook 6. Q&A 15
Slide 16: Hosting review
Hosting review For personal use only Highlights Revenue % EBITDA % Hosting • Expanded position as the market leader in mission critical application hosting • Record full year sales orders 19% • Revenue and EBITDA on a consistent growth path 43% Key drivers and industry outlook • Hosting attracts a b
Slide 17: Hosting review
Hosting review For personal use only " " ! $ " H* ,-1, ,-@ ! ! " I / : # J ,-1- 17
Slide 18: Telco (Data, Voice & Mobiles) review
Telco (Data, Voice & Mobiles) review For personal use only Highlights Revenue % EBITDA % Telco • Telco revenue down 7.8% primarily due to reduction in Voice as price competition and fixed to mobile and data substitution continues • Strict margin management and successful supplier negotiations improv
Slide 19: Agenda
Agenda For personal use only 1. Group highlights 2. Financial performance 3. Operation and division review 5 Strategy 4. ( and outlook 5. Outlook 6. Q&A 19
Slide 20: Strategy
Strategy For personal use only • " • #< #G< • # ( • ' • < ' 3E11 ! #<B " + G • " 9 9 • < $ • $ • G ! ' ' K % L *H 'L ( <B( • ' • ' 20
Slide 21: Strategy
Strategy For personal use only • # • + *+ • + *+ B</ L G BE + *+ • " ! ! ! ! • ( ! % ' B# B < • # • % 21
Slide 22: Agenda
Agenda For personal use only 1. Group highlights 2. Financial performance 3. Operation and division review 4. Strategy 6 $ 6. Q&A 22
Slide 23: Outlook
Outlook For personal use only 1 # ,-11 ! , ' % ! $ ,-11 ?1A ?1. 4 " ?16 3E11 ! 5 % M ,-11 ! M / + 23
Slide 24: Questions
Full Year Results 2010 For personal use only Questions 24
Slide 25: Thank you
For personal use only Macquarie Telecom Group Ltd Thank you www.macquarietelecom.com 25
Slide 26: Disclaimer
Disclaimer For personal use only + ! ! $ ! % / G ) $ ! % / G 3 ! $ $ ! $ ! $ * % / G ! ! 26
Macquarie Telecom Group — FY2010 Earnings Presentation on 6ix