Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — Investor Presentation (July 2022)
18 slides from Netlink Nbn Trust's investor presentation, Jul 20, 2022
Slide 1: Management Presentation
Management Presentation 20 July 2022
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: Our business
Our business 1,464,217 • HDB/High Rise Residential Apartments Residential End-Users • Landed Residential Area NetLink Central Office 50,278 • Non-Residential Premises Non-Residential End-Users 2,404 • • Lamp Post Mobile Base Station NBAP Connections • WiFi hotspot Segment Ducts and • Billboard/Signa
Slide 4: Our business is future proof
Our business is future proof #1 PREFERRED Only means of fixed broadband delivery in Singapore HIGH PENETRATION Over 95% residential penetration rate LOW PRICES Fibre broadband prices are lower in Singapore than many other countries CRITICAL INFRASTRUCTURE Fibre supports last-mile wireless access sol
Slide 5: FY22 Financial highlights
FY22 Financial highlights REVENUE EBITDA S$378m +2.5% -1.2% S$270m S$368m S$267m FY21 FY22 FY21 FY22 WEIGHTED AVERAGE MARKET DISTRIBUTION NET GEARING DEBT DURATION CAPITALISATION PER UNIT 19% S$3.8 billion 5.13 cents 3.4 years Unit price of S$0.975 as at 1.0% higher than FY21 Comfortable debt headro
Slide 6: Residential
Residential • Nationwide fibre network CONNECTIONS HIGHLIGHTS • Connection growth of 1.2% vs FY21 • Fixed regulated pricing ’000 1,328 1,427 1,447 1,464 unaffected by end-user • Slower growth in new household 1,500 switching internet service penetration due to delays in provider 1,450 constructions
Slide 7: Non-residential
Non-residential • Non-residential segment CONNECTIONS HIGHLIGHTS is a competitive segment • Connection growth of 4.5% vs ’000 46.2 47.7 48.1 50.3 FY21 • About 35% market share 51 • Provide equal and open • Close to 1,700 new SMEs signed 50 access to all internet up 49 service providers 48 • Capex ta
Slide 8: Non-building address points (NBAP)
Non-building address points (NBAP) • Fibre connection to any CONNECTIONS HIGHLIGHTS location without a postal • Connection growth of 20.4% vs 1,587 1,679 1,996 2,404 code FY21 2,500 • Connecting to 2,000 locations/devices such as • Growth mainly from mobile network lamp post, mobile base roll out an
Slide 9: Segment fibre
Segment fibre • Point-to-point fibre CONNECTIONS HIGHLIGHTS connections • Connection growth of 69.5% vs 324 417 1,146 1,901 FY21 • Connecting CO-to-CO, 2,000 building-to-building, • Growth was fuelled by point-to-point 1,800 CO-to-building, and building- 1,600 connections that support mobile to-end
Slide 10: Resilient business model
Resilient business model Residential Non- NBAP & Ducts & Installation Ancillary Co-Location Central Connections Residential Segment Manholes Related Project & Other Office Connections Connections Service Revenue Revenue Revenue Revenue Revenue RAB REVENUE NON-RAB REVENUE % of FY22 Revenue 63.8% 8.2%
Slide 11: Strategic Focus
Strategic Focus 1. Improve network reach, densification and capability in support of NetLink’s fiber-to- anywhere (FTTx) deployment. 2. Improve competitiveness of NetLink’s Fibre in enterprise and Government segment 3. Pursue favourable outcome for Regulatory Price Review 4. Explore opportunities to
Slide 12: FY22 Profit & loss statement
FY22 Profit & loss statement Variance Revenue for FY22 was 2.5% higher than FY21 due to: $’000 FY22 FY21 • Higher residential, NBAP & segment connections (%) revenue, installation-related revenue and ancillary project revenue Revenue 377,611 368,466 2.5 • Partially offset mainly by lower Central Off
Slide 13: Strong credit metrics and cashflow
Strong credit metrics and cashflow FY22 FY21 Gross Debt S$666m S$666m Weighted average debt $258.7m 3.4yrs 1.2yrs $73.9m maturity $205.6m Net debt/EBITDA(1) 1.9x 1.8x EBITDA Interest cover(1) 29.8x 14.8x $170.5m $149.8m Borrowings at Fixed Rate 77% - Effective average interest 1.11% 2.48% Opening Ca
Slide 14: Attractive distribution yield
Attractive distribution yield Distribution per Unit (Singapore cents) Distribution yield (%) 3.24 4.88 5.05 5.08 5.13 5.26 2.34 0.24 2.92 3.76 Bloomberg as at 31 Mar 2022 (1) FP18 FY19 FY20 FY21 FY22 NetLink NBN 10-YR SG Bank 12 mth STI Yield FTSE ST Yield (2) Govt Bond FD rate REIT Yield (1) For th
Slide 15: Awards for Corporate Governance
Awards for Corporate Governance Ranked 1st Governance Index for Trusts 2021 Achieved a score of 95, an improvement by five points over its previous high score Ranked 4th Singapore Governance and Transparency Index 2021 REIT and Business Trust Category Ranked 4th (up from 5th in FY21) Winner Singapor
Slide 16: Sustainability: Achievements
Sustainability: Achievements OUR BUSINESS OUR OUR PEOPLE PRACTICES ENVIRONMENT • Maintained islandwide fibre • Maintained zero cases of • Achieved employee turnover coverage non-compliance on waste disposal rate of 15.4%, lower than the • Maintained 99.99% network practices High-Tech industry turnov
Slide 17: Sustainability: Decarbonisation Strategies
Sustainability: Decarbonisation Strategies TARGET Reduce scope 1 and 2 emissions 50% by FY30 (using FY22 as a baseline) Achieve net zero by 2050. LED 50% FY23 FY26 FY30 FY50 DECARBONISATION STRATEGIES • Replacing existing lights with LED lights or motion-sensing lighting in our Central Offices • Ins
Slide 18: Thank you
Thank you
NetLink NBN Trust — Investor Presentation (July 2022) on 6ix