Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — FY2020 Earnings Presentation
22 slides from Macquarie Technology's earnings presentation, Aug 27, 2020
Slide 1: Full Year Results 2020
Full Year Results. 2020. 27 August 2020 Authorised for release by the board of directors of Macquarie Telecom Group Limited
Slide 2: Business Summary
2 Business Summary. 69% Revenue EBITDA Revenue EBITDA Macquarie Telecom Group
Slide 3: Key Business Highlights
3 Key Business Highlights. Revenue EBITDA NPAT EPS $266.2m $65.2m $13.5m 63.6 ps ● Six consecutive years of revenue and EBITDA growth • Increased syndicated debt facility to fund the build of IC3 data centre and undrawn balance of $92m ● EBITDA CAGR of 16.8% over 3 years (pre-AASB16 9.5%) • Hosting
Slide 4: Business Highlights Summary
4 Macquarie Telecom Macquarie Cloud Services ● #1 in Asia Pacific for SDWAN ● Continues to grow successfully leveraging the Hybrid IT ● 2/3 of Macquarie customers successfully migrated to NBN megatrend ● Strong cross sell of Cloud Services solutions into Telecom’s ● Managed Azure Practice, a pathway
Slide 5: A Differentiated Offering
A Differentiated Offering. Macquarie Telecom Group
Slide 6: +72 NPS
6 Company purpose. Customer focus. To make a difference in markets • Our continued focus on providing a great customer experience is core to our service that are underserved and offering & differentiation overcharged. • Macquarie’s net promoter score (NPS) is 72 for 2H20 – Australian leading NPS • N
Slide 7: Quality Infrastructure
Quality Infrastructure. Macquarie Telecom Group
Slide 8: Data Centre Portfolio
Data Centre Portfolio. Intellicentre 1 Intellicentre 2 Intellicentre 3 East Intellicentre 4 Bunker, Intellicentre 5 South Sydney Macquarie Park Macquarie Park Canberra Bunker, Canberra Macquarie Data Centre’s projected total load is 50MW comprising of ● Macquarie Park Data Centre Campus 43MW: IC2, I
Slide 9: IC3 East Progress
IC3 East Progress. IC3 East build is progressing well and we continue to expect completion in early 2021. To meet the needs of prospective wholesale customers we have decided to: ● Bring forward additional total load of 4MW in IC3 East to increase capacity to 6.4MW; ● Increase the overall IC3 East c
Slide 10: IC5 South Bunker Canberra
IC5 South Bunker Canberra. ● Construction due to complete by December 2020 ● Built to Federal Government security standards (SCEC Zone 5 ready) and redundancy (Tier IV) ● Stage 1 investment of $17m ● Campus Total Load 4MW comprising: – Existing IC4 Bunker 1MW – IC5 South Bunker (Stage 1) 1.5MW – IC5
Slide 11: Our private cloud is a key source of data centre utilisation
Our private cloud is a key source of data centre utilisation and generates higher revenue per rack. Underlying infrastructure anonymised as we sell outcome focused solutions Macquarie Telecom Group
Slide 12: Financials
Financials. Macquarie Telecom Group
Slide 13: Financial Results
13 Financial Results. • Inter-segment revenue relates to services provided by the Hosting segment to the Telecom segment, eliminated on consolidation • EBITDA post AASB16 has increased by $8.0m as rent is excluded under AASB16. Instead lease obligations are recognised on the balance sheet as right o
Slide 14: Group Financial Performance
14 Group Financial Performance. Group Revenue ($m) Group EBITDA ($m) 134.3 33.6 131.9 31.6 125.6 121 118.6 29.6 115 25.3 25.4 26.7 27.6 22.5 1H18 2H18 1H19 2H19 1H20 2H20 1H18 2H18 1H19 2H19 1H20 2H20 • Over the last 3 years: COVID-19 Impact – Revenue CAGR of 6.8% • Performance has been resilient to
Slide 15: Financial Performance – Hosting
15 Financial Performance – Hosting. Hosting Revenue ($m) Hosting EBITDA ($m) 23.3 21.7 67.6 62.7 57.6 53 49.5 46.1 18.5 20.0 15.3 16.9 13.4 13.4 1H18 2H18 1H19 2H19 1H20 2H20 1H18 2H18 1H19 2H19 1H20 2H20 • Over the last 3 years: COVID-19 Impact − Revenue CAGR of 16.8% • Acceleration of mega trend t
Slide 16: Financial Performance – Telecom
16 Financial Performance – Telecom Telecom Revenue ($m) Telecom EBITDA ($m) 71.1 71.4 70.4 70.4 71.8 69.3 9.9 10.3 11.9 9.1 10.1 9.8 9.1 9.6 1H18 2H18 1H19 2H19 1H20 2H20 1H18 2H18 1H19 2H19 1H20 2H20 • Over the last 3 years: COVID-19 Impact − Revenue CAGR of (0.5)% • Change in mix in Telecom produc
Slide 17: Growth Capex
17 Growth Capex. Customer Growth Maintenance Capex. Capex. ● Growth Capex is for the building of new ● Customer Growth Capex is for ● Most of the remaining Capex is data centre capacity, increased power additional cabling, racks, infrastructure refresh and supply, new technology creation & servers &
Slide 18: Balance Sheet & Cash Flows
18 Balance Sheet & Cash Flows. FY20 (Pre FY20 (Post ● Cash and cash equivalents of $37.9m. Negotiated $m FY19 AASB16) AASB16) increase to syndicated debt facility with undrawn Cash & Cash Equiv alents 17.1 37.9 37.9 portion of $92m available for investment and build of Current Assets 29.5 44.5 44.0
Slide 19: Outlook
19 Outlook. ● We are focused on maintaining industry leading Net Promoter Score greater than +70 across all business segments ● The Company’s EBITDA will continue to grow in FY21. However, 2H FY21 will be relatively flat compared to 1H FY21 driven by investment in sales and operational resources to
Slide 20: Outlook
20 Outlook. ● Depreciation and amortisation (post AASB16) for FY21 is expected to be $45 to $48 million. Telecom depreciation will increase from $15.3 million in FY20 to $17 to $18 million in FY21 and Hosting from $26.0 million in FY20 to $28 to $30 million in FY21 ● The Company plans to make a sign
Slide 21: Outlook
21 Outlook. ● Telecom capex will decrease from $22.8m in FY20 to $15 to $16m in FY21 as the core network roll out is completed (growth capex) ● The Macquarie Park Data Centre Campus will provide 43MW in total load on completion. Development of Macquarie Intellicentre 3 (IC3) East, expands the Group’
Slide 22: Disclaimer
Disclaimer. No express or implied warranty is given as to the accuracy or completeness of the information in this document or any corresponding presentation. This document may contain forward looking statements that, while used in good faith, reflect Macquarie Telecom Group Limited’s current intenti
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