Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — Q1 FY21 Earnings Presentation
16 slides from Netlink Nbn Trust's earnings presentation, August 2020
Slide 1: Q1 FY21 Investor Presentation
Q1 FY21 Investor Presentation 1
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 Revenue Cash Balance Market Cap3 S$89.0m S$120m S$3,780m 3.3%2 EBITDA Gross Debt Enterprise Value S$68.8m S$666m S$4,326m 3.4%2 1 Q1 FY21 2 Variance versus Q1 FY20 3 Based on the unit price of S$0.970 at 30 Jun 2020 3
Slide 4: Fibre is 'future proof'
Fibre is ‘future proof’ Fibre is the About 9 out Fibre Fibre supports Fibre medium of of 10 homes broadband wireless access capacity is choice for in Singapore prices are solution such scalable and delivering has a fibre lower in as WiFi can support broadband termination Singapore hotspots and futur
Slide 5: Our network
Our network 1,428,272 46,988 1,772 End-Users Connections End-Users 5
Slide 6: A resilient business model
A resilient business model RAB Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of Q1 FY21 66.5%
Slide 7: Fibre connections
Fibre connections Non-Building Address Points Residential Non-Residential And Segment connections1 ’000 ’000 NBAP connections 1,500 50 47.7 2,000 46.2 47.0 Segment connections 1,427 1,428 43.9 1,772 1,800 1,400 1,679 1,587 1,328 40 1,600 1,300 1,400 1,192 30 1,200 1,200 1,000 IPO Projection IPO Proj
Slide 8: Q1 FY21 Profit & loss statement
Q1 FY21 Profit & loss statement S$’000 Q1 FY21 Q1 FY20 Variance (%) Revenue was lower by Revenue 88,962 92,041 (3.3) 3.3% mainly due to the impact COVID-19 had on lower installation- related EBITDA 68,764 66,525 3.4 revenue and diversion revenue partially offset by revenues from higher EBITDA margin
Slide 9: Robust balance sheet
Robust balance sheet1 S$120m S$666m S$2,832m Cash Balance Gross Debt Net Assets 2.6x 14.3x 72.7 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$510.0 mi
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%(1) 4.88 4.9% 4.7% 3.24 0.9% 0.5% FP18 (1) FY19 FY20 NetLink 10-YR Bank STI FTSE NBN Yield SG Govt 12 mth Yield ST REIT Bond FD Rate Yield Bloomberg as at 30 June 2020 (1) Distribu
Slide 11: Our focus for FY21
Our focus for FY21 NON-RESIDENTIAL, 01 RESIDENTIAL 02 NBAP & SEGMENT • Connect households not • Denser network – adding on fibre via initiatives such capacity, flexibility and as IMDA’s Home Access resilience programme for low-income • Prepare to support 5G households infrastructure • Connect new ho
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