Slide 1: Exetel Acquisition & Capital Raise Investor Presentation
Superloop (ASX:SLC) Exetel Acquisition & Capital Raise Investor Presentation Tuesday, 8th June 2021 Not for distribution into US or to US persons 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 UBS AG, Australia Branch and Canaccord Genuity (Australia) Limited, their affiliates and related entities, and their respective dir
Slide 3: Disclaimer
Disclaimer Forward-looking statements To the maximum extent permitted by law, Superloop and the Relevant Parties disclaim any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts and indications of, and guidance on, future ear
Slide 4: Key Highlights
Key Highlights Superloop to acquire Exetel, Australia’s largest independent ISP, for $110 million. comprising $100 million in cash consideration and $10 million in Superloop shares. Key Deal Metrics(1) $150m $261m The acquisition accelerates Superloop’s utilisation of its infrastructure assets via a
Slide 5: Summary
Summary Superloop has entered into a binding agreement to acquire Exetel for an enterprise value of $110 million, representing 10.0x FY21 Acquisition EV/FY21 Forecast EBITDA(1) pre synergies, 6.9x FY21 EV / FY21 Forecast EBITDA(1) post synergies. Offer consideration comprises $100 million in cash an
Slide 6: About Exetel
Overview About Exetel 6
Slide 7: About Exetel
About Exetel $ 110,000+ 185,000+ $150m Australia's largest private Provides 185,000+ active FY21 Forecast standalone independent internet service internet, telephone (VoIP & revenue $150m+(1), +95% of which provider with 110,000+ mobile) & communications is recurring revenue. consumer and business s
Slide 8: About Exetel (Cont.)
About Exetel (Cont.) Exetel generates significant revenue across both business and consumer with the majority of revenue coming from connectivity Breakdown of Services Revenue by Product Revenue breakdown $ in Operation (SIOs) 56% Of total revenue is driven by consumer services, which accounts for 86
Slide 9: Combined Benefits
Superloop + Exetel Combined Benefits + 9
Slide 10: Superloop's Growth Strategy
Superloop’s Growth Strategy Focused on accelerating growth in our three Superloop Operational Segments customer segments, wholesale/international, business & consumer with the purpose of increasing utilisation of Superloop’s network Wholesale/ investments to date. International “The acquisition of E
Slide 11: Combined Benefits
Combined Benefits Build scale as a major provider in the Australian market with $261m revenue & 155,000+ customers backed by infrastructure economics. $261m $34m Revenue(1) EBITDA (1) (post-synergies) Opportunity to increase ARPU and customer stickiness with richer product set, broader and deeper mar
Slide 12: Combined Group: Superloop + Exetel (FY21 Pro Forma Basis)
Combined Group: Superloop + Exetel (FY21 Pro Forma Basis) 89% (1) 135% (1) 240% Additional 110,000+ Customers Forecast EBITDA uplift Forecast revenue uplift (including consumer and business) $18m + $11m + $5m $111m + $150m = $261m 155,000+ SLC Exetel Synergy SLC Exetel Combined Post Acquisition Cust
Slide 13: Service Benefits for Superloop
Service Benefits for Superloop Accelerate growth trajectory and scale necessary to be a major provider in the Australian marketplace. Superloop joins the Leverage our infrastructure ownership advantage to deliver 100k* customer club greater user experience and greater margins. Add new product capabil
Slide 14: Service Benefits for Exetel
Service Benefits for Exetel Improved user experience, lower latency and higher reliability with Superloop’s world-class IP backbone ACCC recognised Superloop as the nation's lowest latency internet provider.(1) Access Superloop’s fully automated NBN management platform allowing faster and more stream
Slide 15: $5m annualised synergies from Exetel network migration onto Superloop infrastructure
$5m annualised synergies from Exetel network migration onto Superloop infrastructure Exetel services will be transferred onto the Superloop network without material capex spend, and the network will continue to have significant capacity to support future growth. Exetel utilises wholesale services fro
Slide 16: Superloop standalone FY21 EBITDA - Guidance
Superloop standalone FY21 EBITDA - Guidance Superloop confirms FY21 EBITDA guidance of $ $18.0m - $18.5m (excluding one-off Acquisition costs) $18m - $18.5m within the previously stated guidance range. FY21 EBITDA Guidance Continued growth in connectivity & consumer revenue has offset temporary COVID
Slide 17: Funding Details
Funding Details Institutional Placement & Entitlement Offer 17
Slide 18: Funding details
Funding details Fully underwritten Institutional Placement and accelerated non-renounceable entitlement Offer size & offer (representing 1 for 6.67 shares) to raise gross proceeds of approximately $100 million Source of Funds structure (“Equity Raising”). Approximately 108 million new Superloop ordi
Slide 19: Equity Raising Timetable
Equity Raising Timetable Date Activity Monday, 7 June 2021 Trading halt Tuesday, 8 June 2021 Announcement of Acquisition and Equity Raising Tuesday, 8 June 2021 Bookbuild for Placement and Institutional Entitlement Offer conducted Announcement of the completion of Placement and Institutional Entitle
Slide 20: Financial Summary
Financial Summary 20
Slide 21: Exetel stand alone Financial Summary
Exetel stand alone Financial Summary $’Mil FY19(1) FY20(1) FY21(2) Revenue 126.8 156.0 150.0 72% Gross profit 24.7 27.9 32.9 EBITDA growth from $6.4m to $11.0m EBITDA (0.1) 6.4 11.0 EBIT (0.4) 5.1 9.5 18% NPAT (0.5) 3.6 6.7 Gross profit uplift due to reduction in COGS & focus on quality of earnings $’
Slide 22: Pro Forma Balance Sheet
Pro Forma Balance Sheet Acquisition & Funding Pro Forma Post Acquisition $’Mil SLC(1) Exetel(2) adjustments(3) & Funding ASSETS Cash & Cash Equivalents 13.7 9.8 8.2 31.7 Property, plant & equipment 226.2 2.3 228.5 Intangibles 230.0 6.0 112.2 348.2 Other Assets 26.6 14.5 41.1 Total Assets 496.5 32.6
Slide 23: Appendix
Appendix 1. Key Risk Factors 2. Summary of Underwriting Agreement 3. Foreign Selling Restrictions 23
Slide 24: Appendix 1: Key Risk Factors
Appendix 1: Key Risk Factors These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to participate
Slide 25: Appendix 1: Key Risk Factors (cont.)
Appendix 1: Key Risk Factors (cont.) These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to part
Slide 26: Appendix 1: Key Risk Factors (cont.)
Appendix 1: Key Risk Factors (cont.) These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to part
Slide 27: Appendix 1: Key Risk Factors (cont.)
Appendix 1: Key Risk Factors (cont.) These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to part
Slide 28: Appendix 1: Key Risk Factors (cont.)
Appendix 1: Key Risk Factors (cont.) These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to part
Slide 29: Appendix 1: Key Risk Factors (cont.)
Appendix 1: Key Risk Factors (cont.) These risks are a summary of the key risks to Superloop, and are not an exhaustive list of all possible risks faced by Superloop. Shareholders should consult their stockbroker, solicitor, accountant or other professional adviser to evaluate whether or not to part
Slide 30: Appendix 2: Summary of underwriting agreement
Appendix 2: Summary of underwriting agreement The Company has entered into an underwriting agreement with the Joint Lead Managers who have agreed, subject to the satisfaction of certain conditions precedent, to fully underwrite the Equity Raising. As is customary with these types of arrangements: ·
Slide 31: Appendix 3: Foreign Selling Restrictions
Appendix 3: Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares in Superloop Limited (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or
Slide 32: Appendix 3: Foreign Selling Restrictions (cont.)
Appendix 3: Foreign Selling Restrictions (cont.) This document does not constitute an offer of new ordinary shares in Superloop Limited (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be off
Slide 33: Appendix 3: Foreign Selling Restrictions (cont.)
Appendix 3: Foreign Selling Restrictions (cont.) This document does not constitute an offer of new ordinary shares in Superloop Limited (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be off
Slide 34: Appendix 3: Foreign Selling Restrictions (cont.)
Appendix 3: Foreign Selling Restrictions (cont.) This document does not constitute an offer of new ordinary shares in Superloop Limited (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be off
Slide 35: Thank You
Thank You Contact Details: investor@superloop.com https://investors.superloop.com 35