Slide 1: FY17 Full-Year Results
For personal use only FY17 FULL-YEAR RESULTS 31 AUGUST 2017 NEXTDC LIMITED ACN 143 582 521
Slide 2: FY17 Highlights
FY17 HIGHLIGHTS For personal use only REVENUE EBITDA UTILISATION $123.6m $49.0m 32MW +33% +77% +21% CUSTOMERS PARTNERS INTERCONNECTIONS 772 350+ 6,342 +19% 50+ NETWORKS +39%
Slide 3: FY17 Highlights
FY17 HIGHLIGHTS For personal use only ▪ Revenue from continuing operations up $30.7m 1 (33%)1 to $123.6m Solid revenue ▪ Contracted utilisation up 5.4MW2 (21%)2 to 31.5MW growth ▪ Interconnection up 1,767 (39%)2 to 6,342, representing ~6.0% of recurring revenue ▪ EBITDA up $21.3m1 (77%)1 to $49.0m S
Slide 4: FY18 Game Changers
FY18 GAME CHANGERS For personal use only Australia’s largest total planned network capacity increased to 126MW ▪ S1 capacity increasing from 15MW to 16MW Network ▪ P1 fitout of final two data halls expansion ▪ M2 planned capacity increase from 25MW to 40MW ▪ B2 planned capacity increase from 6MW to
Slide 5: Agenda
For personal use only Agenda ▪ FY17 Financial Results ▪ FY17 Business Performance ▪ FY18 Outlook ▪ Appendices
Slide 6: Financial Results
For personal use only FY17 Full-Year Results FINANCIAL RESULTS
Slide 7: FY17 Profit and Loss Summary
FY17 profit and loss summary Data centre services REVENUE For personal use only FY17 FY16 Change EBITDA 32% 77% Note ($m) ($m) ($m) Data centre services revenue 117.6 89.3 28.3 Other revenue 6.0 3.6 2.4 Total revenue from continuing operations 123.6 92.8 30.7 ▪ Customer power consumption continues
Slide 8: Strong revenue and EBITDA growth
Strong revenue and EBITDA growth For personal use only 32% revenue growth on FY16 77% EBITDA growth on FY16 Recurring and project revenue1 $117.6m EBITDA3 $49.0m Project revenue2 EBITDA Recurring revenue $89.3m $27.7m $58.7m $8.0m $30.4m $9.0m ($16.1m) ($20.0m) FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY1
Slide 9: Revenue per unit metrics
Revenue per unit metrics Annualised revenue per sqm ($)1 Annualised revenue per MW ($m)2 For personal use only 8,863 4.09 4.18 3.97 4.00 8,421 7,741 6,980 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 1. Revenue reflects data centre services ▪ Demonstrates ongoing growth in revenue per square metre, notin
Slide 10: Business model delivers significant operating leverage
Business model delivers significant operating leverage EBITDAR / Data centre services Corporate costs / Data centre services For personal use only revenue1,2 revenue 56% 68% 49% (13%) 35% 30% 21% (81%) FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 ▪ EBITDAR margin is a property-agnostic indicator of under
Slide 11: Strong asset and funding position
Strong asset and funding position For personal use only 30 June 2017 ($m) 30 June 2016 ($m) $280.6m $148.6m Cash and term deposits 368.3 191.4 Property, plant, equipment 434.3 302.7 $368.3m Total assets 852.4 530.2 Interest-bearing liabilities 302.3 166.2 $44.9m Total liabilities 345.9 197.1 $191.4m
Slide 12: Employed asset base delivering good returns
Employed asset base delivering good returns For personal use only Asset Mix EBITDA / (Net Debt + Equity)1,2 13% Operational 10% Under development 5% Corporate 20% 4% 75% (6%) FY14 FY15 FY16 FY17 ▪ Operational facilities are delivering solid returns on capital invested with further ▪ Demonstrates ope
Slide 13: Business Performance
For personal use only FY17 Full-Year Results BUSINESS PERFORMANCE
Slide 14: Strong growth in customers and connectivity
Strong growth in customers and connectivity Customers Interconnection1 For personal use only (number of cross connects) 772 6,342 647 4,575 478 2,893 302 1,488 132 513 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 ▪ Strong growth in interconnection drives average cross connects per customer to 8
Slide 15: Diversified recurring revenue model
Diversified recurring revenue model For personal use only 5% 6% Customer by industry1,2 Utilisation by density3 7% Enterprise Government 25% More than 6kW 33% Cloud Financial Services 4kW to 6kW Connectivity Digital Media 42% 3kW or less 12% System Integrators 17% Cloud, connectivity and as-a-servic
Slide 16: Utilisation
Utilisation Installed capacity1 vs contracted utilisation Billing vs contracted utilisation For personal use only ▪ 88% of installed capacity was contracted at 30 June 2017 ▪ Contracted utilisation up 5.4MW (21%) to 31.5MW since 30 June 2016 4 ▪ Built capacity increased at C1 from by 1.3MW to 2.0MW
Slide 17: Facilities capacity and utilisation
Facilities capacity and utilisation As at 30 June 2017 40 Contracted utilisation For personal use only ▪ S1 Sydney: additional data hall space being fitted out to support customer requirements and drive higher utilisation Future build 35 Build in progress 30 ▪ P1 Perth: achieved UTI GOLD operational
Slide 18: B2 Brisbane
B2 BRISBANE Stage 1: 3,000sqm Technical space For personal use only Stage 2: 3,000sqm1 Stage 1: 6MW Total IT capacity Stage 2: 6MW Initial capacity 2MW Target PUE 1.252 / 1.343 Design standard UTI Tier IV Status Target OPEN Sep 2017 ▪ Australia’s first UTI Tier IV design and construct certification4
Slide 19: M2 Melbourne
M2 MELBOURNE Stage 1: 10,000sqm Technical space For personal use only Stage 2: 5,000sqm Stage 1: 25MW Total IT capacity Stage 2: 15MW Initial capacity 2MW Target PUE 1.101 / 1.282 Design standard UTI Tier IV Status Target OPEN Oct 2017 ▪ UTI Tier IV design and construct certification ▪ Tier IV desig
Slide 20: S2 Sydney
S2 SYDNEY Technical space 8,700sqm For personal use only Total IT capacity 30MW Initial capacity 6MW Target PUE 1.151 / 1.292 Design standard UTI Tier IV Status Target OPEN 1QFY19 Artist’s impression ▪ S2 Development Approval secured and development underway ▪ UTI Tier IV design and construct certif
Slide 21: APDC – Takeover Offer
Asia Pacific Data Centre Group (APDC) – Takeover Offer For personal use only ▪ NEXTDC announced an unconditional, all-cash takeover offer of $1.87 per security ▪ NEXTDC currently owns a 21.1% stake in APDC Situation ▪ Board of APDC has unanimously recommended NEXTDC’s takeover offer in the absence o
Slide 22: FY18 Outlook
For personal use only FY17 Full-Year Results FY18 OUTLOOK
Slide 23: FY18 outlook – our biggest year yet
FY18 outlook – our biggest year yet Underlying revenue1 in the range of $146m to $154m (up 18% to 25% on FY17) For personal use only Strong ▪ Growth in recurring revenue underpinned by long-term customer contracts revenue ▪ Growth in connectivity revenue supported by 39%2 increase in cross connects
Slide 24: Appendices
For personal use only FY17 Full-Year Results APPENDICES
Slide 25: Business Strategy
For personal use only FY17 Full-Year Results BUSINESS STRATEGY
Slide 26: Vision
VISION For personal use only Our vision is to help enterprises harness the digital age, improving our society through the advancement of technology
Slide 27: Mission
MISSION For personal use only Our mission is to be the leading customer- centric data centre services company, delivering solutions that power, secure and connect enterprise
Slide 28: For personal use only
For personal use only NEXTDC FY17 Results 28
Slide 29: Australia's largest network of neutral colocation data centres
AUSTRALIA’S LARGEST NETWORK For personal use only OF NEUTRAL COLOCATION DATA CENTRES PERTH P1 6MW BRISBANE B1 2.25MW B2 12MW 8+ DATA CENTRES CANBERRA C1 4.8MW MELBOURNE SYDNEY S1 16MW 126+ MEGAWATTS1 S2 30MW M1 15MW M2 40MW 25,000+ RACKS1 1. Numbers are an approximation at full fitout NEXTDC FY17 Re
Slide 30: Setting new standards
Uptime Institute For personal use only Tier IV Design and Construct SETTING NEW STANDARDS From UTI Tier III Concurrent Maintainability to Tier IV Fault Tolerance 30
Slide 31: UTI Tier IV Data Centres
UTI TIER IV DATA CENTRES For personal use only Tier IV is currently the peak of the Tier Classification System created by the Uptime Institute to consistently evaluate individual data centre performance, and builds on the Tier III standard for concurrent maintainability. FEATURE RESULT ▪ Fault Toler
Slide 32: Uptime Institute endorsement
For personal use only John Duffin Managing Director, South Asia | Uptime Institute “Enhancing the strategies used in their Tier III data centres, in B2, NEXTDC have targeted Australia’s first Tier IV Constructed Facility certification and globally, the first Tier-certified data centre with a Fault T
Slide 33: Operational Sustainability GOLD
Uptime Institute For personal use only GOLD Tier Certification OPERATIONAL SUSTAINABILITY Excellence in managing long-term operational risks and behaviours 30
Slide 34: UTI Gold Operational Certification
UTI GOLD OPERATIONAL CERTIFICATION For personal use only Key areas covered include: Staffing, Training and Organisation, Preventative Maintenance, and Planning, Management and Coordination. FEATURES RESULT ▪ Operational behaviours and risks that ▪ Certifies the management team can impact long-term b
Slide 35: NABERS Industry Leading PUE
NABERS For personal use only 5 STAR Energy Efficiency INDUSTRY LEADING PUE From NABERS 4.5 star to 5 star certified energy efficiency 31
Slide 36: Ecosystem
For personal use only ECOSYSTEM We’ll help you find the right suppliers for every project, every time. CLOUD CENTRE
Slide 37: C1 is Canberra's only hosting location for AWS
C1 IS CANBERRA’S ONLY HOSTING LOCATION FOR AMAZON WEB SERVICES For personal use only DIRECT CONNECT CLOUD ON RAMP “The launch of the AWS Direct Connect service out of NEXTDC’s Canberra data centre will enable our Federal and ACT government customers to connect the hyperscale AWS Cloud and run synchr
Slide 38: Highly connected
For personal use only HIGHLY CONNECTED Unlimited connection possibilities through a multiplicity of networks 36
Slide 39: Elastic networks
For personal use only ELASTIC NETWORKS Create secure, high-speed connections between your data centres, networks and clouds
Slide 40: Leadership in sustainability
For personal use only LEADERSHIP IN SUSTAINABILITY Renewable energy generation and consumption 32
Slide 41: Customer experience
For personal use only CUSTOMER EXPERIENCE World-class customer experience from physical to digital interactions 33
Slide 42: New security standards
For personal use only NEW SECURITY STANDARDS From the enterprise to cloud to government 34
Slide 43: Real time intelligence
For personal use only REAL TIME INTELLIGENCE Keep tabs on your infrastructure with data centre telemetry
Slide 44: NEXTDC is where the cloud lives
NEXTDC is where the cloud lives® For personal use only Consumption economics is a powerful driver of hybrid cloud and colocation. NEXTDC customers enjoy a wide choice of public, private and hybrid cloud solutions through our Cloud Centre partner community: the largest carrier, vendor and integrator
Slide 45: Connect your physical and virtual worlds with AXON
Connect your physical and virtual worlds with AXON AXON connects your data centres, clouds and offices with your choice of network For personal use only Neutral Secure Connect to any cloud, Private connections network or data centre that never touch the anywhere in the world public internet CONNECT
Slide 46: Seamless national network with AXON and cloud on-ramps
Seamless national network with AXON and cloud on-ramps For personal use only ▪ Inter-site connectivity Carrier ▪ Carrier neutral Marketplace ▪ Data centre neutral ▪ On demand interstate Enterprise connections Premise ▪ Geo-redundancy Enterprise Colocation Cloud Providers NEXTDC FY17 Results 46
Slide 47: Australia's biggest network of ICT suppliers
Australia’s BIGGEST network of ICT suppliers Our growing network of 350+ partners For personal use only PREMIER PARTNERS0 CONTENT SOLUTIONS CLOUD CARRIER DISTRIBUTORS INTEGRATORS SERVICES NETWORKS NEXTDC FY17 Results 47
Slide 48: Channel-first sales strategy
Channel-first sales strategy For personal use only Customers easily connect to a wide choice of service providers for seamless hybrid cloud NEXTDC FY17 Results 48
Slide 49: Cloud Centre – network effects drive profit
Cloud Centre – network effects drive profit in the digital economy NEXTDC’s Cloud Centre is the online For personal use only marketplace for software, application or service “Your new digital platform will allow you to participate in the evolving world of providers to create value by facilitating di
Slide 50: Leadership in sustainability
Leadership in sustainability For personal use only NABERS 4.5 star rating 2014 Finalist: M1 Melbourne – 2013 Winner: for energy efficiency the ‘Green’ data centre Sustainability S1 Sydney and M1 Melbourne DatacenterDynamics Awards, Asia-Pacific ARN ICT Industry Awards National Australian Built Envir
Slide 51: Certifications & Awards
Uptime Institute Certifications & Awards Tier certifications Leading the Australian data centre industry For personal use only ISO 27001:2013 ISO9001:2015 ISO 14001:2015 Information Security Quality Management Environmental Management System System certification Management System (ISMS)certification
Slide 52: Industry Overview
For personal use only FY17 Full-Year Results INDUSTRY OVERVIEW
Slide 53: Virtualised, on-demand services drive rapid IT change
Virtualised, on-demand services drive rapid IT change For personal use only "Cloud services will remain the essential foundation of the IT industry's 3rd Platform of innovation and growth. As the cloud market enters an 'innovation stage', there will be an explosion of new solutions and value creatio
Slide 54: Cloud answers challenge of digital economy
Cloud answers challenge of digital economy By 2020 For personal use only "In our view, a near-tripling of the public-cloud-based workload mix represents a monumental architectural shift…and is likely to create a major ripple effect Data centre across the entire technology landscape.” workloads will
Slide 55: Colocation data centres are hubs for cloud access
Colocation data centres are hubs for cloud access “Cloud services providers are amongst the largest users of data centre facilities in the world and this is a For personal use only catalyst for growth in the DC ecosystem, drawing enterprise customers, telcos and IT services firms.” Wonjae Shim, Rese
Slide 56: The shift to cloud has passed the tipping point
The shift to cloud has passed the tipping point "Cloud-first strategies are the foundation for staying relevant in a fast-paced world…helping to For personal use only create a new generation of start-ups and "born in the cloud" providers." Ed Anderson, research vice president at Gartner In 2016 In 2
Slide 57: On-premise hosting can't keep up with digital transformation
On-premise hosting can’t keep up with digital transformation For personal use only "…we are seeing a shift in the ownership model, enterprises are building fewer data centres and are relying on service providers to provide datacenter services from their newly build facilities.” IDC research director
Slide 58: Case Studies
For personal use only FY17 Full-Year Results CASE STUDIES
Slide 59: Case study – B1 Brisbane Facility
1,2 Case study – B1 Brisbane Facility EBITDA ($m) 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 6.0 100% For personal use only Highlights 5.0 Billing utilisation 80% 1. Before head office costs Facility EBITDA ▪ NEXTDC’s first facility, 2. Does not include finance lease amortisation 4.0 3. Billing utilisa
Slide 60: Case study – M1 Melbourne
Case study – M1 Melbourne 1 Facility EBITDA ($m) 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 For personal use only 20.0 100% Highlights Billing utilisation 1. Before head office costs 16.0 80% Facility EBITDA ▪ NEXTDC’s second 2. Percentages adjusted to reflect Project Plus capacity of 15MW facility, co
Slide 61: Case study – S1 Sydney
Case study – S1 Sydney 1 Facility EBITDA ($m) 2Q14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 For personal use only 12.0 100% Highlights 10.0 Billing utilisation 1. Before head office costs 80% Facility EBITDA ▪ NEXTDC’s fourth facility 2. Percentages adjusted to reflect target planned 8.0 capacity of 16MW
Slide 62: Investor updates and disclaimer
For personal use only Register for investor updates at www.nextdc.com/our-company/investor-centre DISCLAIMER: The information may not be reproduced or distributed to any third party or published in whole or in part for any purpose. The information contained in these materials or discussed at the pre