Slide 1: Discover Asia Pacific's New Extraordinary Network
Discover Asia Pacific’s New Extraordinary Network ASX:SLC FY20 Full Year Results & Market Update Monday 24th August 2020 FY20 Performance Sales Momentum Infrastructure Supporting Our Growth Strategy Appendix FY20 Update 1
Slide 2: Disclaimer
Disclaimer No reliance To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Superloop Limited (Superloop) or any of its related bodies corporate or their respective directors, officers, partners, employees,
Slide 3: FY20 Summary Operational Highlights
FY20 Summary Operational Highlights FY20 Performance: Achieved midpoint of guidance EBITDA $13.5m. Connectivity Sales & Revenue Growth: Group revenue of $107m, supported by strong growth in underlying recurring fibre connectivity revenue, 37% year on year growth (excluding construction & subsea one-o
Slide 4: FY20 Operational Highlights
FY20 Operational Highlights Recurring Fibre Connectivity Key major Asia Pacific Growth 37% YoY customer wins network complete 30K SUBS 64% growth in Home Broadband Capex(1) 70% down YoY Recapitalisation completed subscriptions since July 2019 & Opex spend(2) 14% down YoY & balance sheet strengthened
Slide 5: Overview of Superloop's Portfolio Connecting Asia Pacific
Overview of Superloop’s Portfolio Connecting Asia Pacific Asia Pacific Platforms leveraging Non-core Core Fibre Network Connectivity Network CMS being retired Fibre networks connecting key hubs Guest WiFi, Home Broadband & Cloud Managed Services providing Total Superloop Group in Singapore, Australia
Slide 6: FY20 Performance by Segment
FY20 Performance by Segment Core Fibre Connectivity (1) +28% growth in gross margin as FY19 FY20 business continues to focus on building recurring revenue through Gross Gross Gross Gross increased utilisation of network #039;Mil Revenue Revenue GM YoY GM Growth assets. Margin Margin % Margin Margin % F
Slide 7: FY20 EBITDA Movements on Prior FY19
FY20 EBITDA Movements on Prior FY19 $0.6m EBITDA $6.0m(1) Growth Drivers Other revenue $(7.2)m $3.0m growth in core Connectivity gross margin, $6.7m replacing non recurring revenue with recurring revenue growth, net of incremental COGS to $13.5m support the completion of the Impact of FY20 AASB16 on
Slide 8: FY20 Group Profit & Loss Performance
FY20 Group Profit & Loss Performance $’Mil FY19(3) FY20 YoY Total Revenue $119.8 $107.6 -10% Revenue excl. One-off (1) $108.7 $106.2 -2% Direct Costs $(61.3) $(53.1) -14% $13.5m EBITDA mid point of Guidance Gross Margin $58.5 $54.5 -7% Strong underlying margin growth Gross Margin excl. One-off (1) $5
Slide 9: Financial Position at 30 June 2020
Financial Position at 30 June 2020 $’Mil FY19 FY20 Change FY20 Free Cash flow by Qtr(4) Operating cash flows 5.3 12.9 7.6 $2.3m Investing cash flows (53.1) (55.1)* 2.0 $(5.6)m Cash Flows +$7.6m operating cash flows Financing cash flows 51.7 40.7 -11.0 $(19.5)m $(19.4)m year on year. Net cash flows 3.9 -1.
Slide 10: Capital & Operating Expenditure Reducing
Capital & Operating Expenditure Reducing Capital Expenditure Operational Expenses $80m Employee Expenses Intangible $73m $7m Additions IRU Additions $5m (swaps) $10m Property, Plant Capital Expenditure & Equipment +70% reduction in capital $17.0m expenditure (excluding IRU swaps) Additions $37m $14.
Slide 11: Superloop's response to COVID-19
Superloop’s response to COVID-19 COVID-19 has brought a period of uncertainty, Superloop has responded quickly & prudently. Initiatives to accelerate Increased Support provided Our people, to Free Cash Flow (Q4) network demand to our customers working from home A more focused capital ~30% Increased
Slide 12: Sales Momentum
Sales Momentum 12 FY20 Performance Sales Momentum Infrastructure Supporting Our Growth Strategy Appendix FY20 FY20Update Update 12
Slide 13: Customers are Buying More, with Longer Term Contracts & we are Delivering Quicker
Customers are Buying More, with Longer Term Contracts & we are Delivering Quicker New Fibre Connectivity Annualised Revenue Sold FY20 Connectivity Sales (excluding IRUs & swaps) Contract Terms & Total Contract Value (TCV) $39 1 Year 1-2 Years 2-5 Years 5 Years+ Million 37.7% 22.6% 37.5% 2.2% TCV Con
Slide 14: ..and the FY2021 H1 Funnel Remains Strong
..and the FY2021 H1 Funnel Remains Strong International Domestic Student Accommodation Growing Sales Opportunities Long Term Growth on-net services 20+ In excess of 20 major Multiple significant RFPs Significant opportunities Continuing upgrades international sales in process, covering in the long ter
Slide 15: Super Network for Super Customers across Asia Pacific
Super Network for Super Customers across Asia Pacific Enterprise / Business Cloud OTT & Global Service Education & Student Customers / Channel Content Providers Providers & Wholesalers Accommodation Partners + the major OTT players Disclaimer: any brands and trademarks are the property of their respe
Slide 16: Platforms Leveraging our Asia Pacific Network
Platforms Leveraging our Asia Pacific Network Fibre Networks in Singapore, Australia & Hong Kong (Connectivity) Fixed Wireless Network across Australia (Connectivity) CyberHound Secure Internet (Services) Guest WiFi platform for leisure, health & education campuses (Broadband) Residential & small bus
Slide 17: Strong Ongoing Growth in High Bandwidth Home Broadband
Strong Ongoing Growth in High Bandwidth Home Broadband Leveraging our Network & Platforms “Superloop has the highest proportion of high speed NBN plans.” 64% (speeds of 100/20, 100/40) Growth since Jul 2019 30,000 Subscription growth rate of 64% from July 2019, 25,000 with a total subscriber base of
Slide 18: Home Broadband Plans
Home Broadband Plans 18 FY20 Performance Sales Momentum Infrastructure Supporting Our Growth Strategy Appendix FY20 FY20Update Update 18
Slide 19: Infrastructure Supporting Our Growth Strategy
Infrastructure Supporting Our Growth Strategy 19 FY20 Performance Sales Momentum Infrastructure Supporting Our Growth Strategy Appendix FY20 FY20Update Update 19
Slide 20: Superloop's International Subsea Network Connecting Asia Pacific to Europe & North America
Superloop’s International Subsea Network Connecting Asia Pacific to Europe & North America Asia Pacific Fibre Network INDIGO West INDIGO Central Additional Subsea 20 FY20 Performance Sales Momentum Infrastructure Supporting Our Growth Strategy Appendix FY20 FY20Update Update 20
Slide 21: Superloop is Well Positioned for Future Value Creation
Superloop is Well Positioned for Future Value Creation Major capital investment program is complete. Incremental capex predominantly success-based projects. Having completed the major infrastructure build Superloop is continuing to take leadership in innovation and development. Major projects includ
Slide 22: FY 2020 has been a transformational year for Superloop
FY 2020 has been a transformational year for Superloop. We have completed the major infrastructure builds in both Australia and international, restructured our balance sheet, continued to drive financial discipline to realising an operating cash positive position, enabled early actions to manage the
Slide 23: Appendix
Appendix Historical Performance by sub-segment Direct & Indirect Operating Cost performance 23 FY20 Performance Sales Momentum Infrastructure Supporting Our Growth Strategy Appendix FY20 FY20Update Update 23
Slide 24: Historical Financial Performance by Sub-Segment (1/2)
Historical Financial Performance by Sub-Segment (1/2) $000 H1 FY19 H2 FY19 H1 FY20 H2 FY20 FY19 FY20 Connectivity Revenue Australia Fibre 5,562 8,801 8,155 11,307 14,363 19,462 Singapore Fibre 4,929 5,376 7,415 7,482 10,305 14,897 Hong Kong Fibre 1,135 1,977 1,584 2,015 3,112 3,599 Core Fibre Connec
Slide 25: Historical Financial Performance by Sub-Segment (2/2)
Historical Financial Performance by Sub-Segment (2/2) $000 H1 FY19(1) H2 FY19(1) H1 FY20 H2 FY20 FY19 FY20 Rest of Business Revenue Guest WiFi Revenue 11,590 7,117 5,792 5,476 18,707 11,268 Home Broadband Revenue 8,706 8,173 8,761 11,827 16,879 20,588 Total Broadband Revenue 20,296 15,290 14,554 17,
Slide 26: FY20 Direct & Indirect Operating Costs Performance
FY20 Direct & Indirect Operating Costs Performance $’Mil FY19(1) FY20 YoY Connectivity Direct Costs $(27.7) $(27.2) 1.6% Direct Costs Reduction of direct costs of 13.4%, transitioning of Home Broadband Broadband Direct Costs $(19.8) $(17.5) 11.6% customers on-net, tight cost control through the dive
Slide 27: Impact of Leasing Standard AASB16 to EBITDA
Impact of Leasing Standard AASB16 to EBITDA FY19 AASB16 FY19 $’Mil FY20 Reported Adjustments Adjusted Total Revenue $119.8 $119.8 $107.6 Direct Costs ($61.3) $3.7 ($57.6) ($53.1) AASB16 Leasing Gross Margin $58.5 $62.2 $54.5 AASB 16 Leases was applied on 1 July Gross Margin % 49% 52% 51% 2019 in acc
Slide 28: Connectivity Foundation
Connectivity Foundation $m Revenue by Half H1 FY19 H2 FY19 H1 FY20 H2 FY20 $8.6 84% Margin % Fibre Connectivity Continuous growth in strong underlying recurring fibre $10.1 $9.1 connectivity revenue, with 37% YoY growth. Fixed Wireless $10.5 (Connectivity) Fibre(1) (Connectivity) 36% Margin % Fixed W
Slide 29: Broadband Segment leveraging our Fibre Connectivity Foundation
Broadband Segment leveraging our Fibre Connectivity Foundation $m Revenue by Half H1 FY19 H2 FY19 H1 FY20 H2 FY20 $2.2 Guest WiFi (1) (Broadband) $3.5 Guest WiFi Installation $1.3 Revenue z 55% $0.5 Margin % Guest WiFi Broadband Non APAC Guest WiFi (US/UK) Revenue sold Underlying recurring $5.9 $5.9
Slide 30: Services Segment includes non-core CMS + core CyberHound
Services Segment includes non-core CMS + core CyberHound $m Revenue by Half H1 FY19 H2 FY19 H1 FY20 H2 FY20 Cloud Managed Services In 2019, Superloop notified investors and customers that CMS would be discontinued, and customers migrated to other Cloud Managed providers on a case-by-case basis. Servi
Slide 31: Fibre Scale Economics: FY20 Revenue
Fibre Scale Economics: FY20 Revenue $20.8 $14.9 $3.6 million million million AUSTRALIA SINGAPORE HONG KONG 36%(1) YoY revenue growth 45% YoY revenue growth 16% YoY revenue growth $136m Invested Cap $58m Invested Cap $74m Invested Cap 30.5%(2) Utilisation 16.8% Utilisation 3.7% Utilisation 2.0yrs Avg