Superloop Ltd. · ASX:SLC
Superloop — H1 FY2018 Earnings Presentation
41 slides from Superloop's earnings presentation, Feb 26, 2018
Slide 1: Half Year FY18 Results Presentation
Half Year FY18 Results Presentation Monday 26th February 2018 Our vision is to be the most trusted enabler of connectivity and managed services in Asia Pacific 1
Slide 2: H1 FY18 Results: Business Performance
H1 FY18 Results Business Performance
Slide 3: H1 FY18 Highlights
H1 FY18 Highlights Highlights ● Australia, Singapore and Hong Kong networks achieving positive EBITDA before allocation of corporate overheads ● Acquisition of NuSkope Pty Ltd (earnings contribution from 13 October 2017) ● Acquisition of GX2 Holdings Pty Ltd (GX2) (earnings contribution from 17 Nove
Slide 4: Financials
Financials H1 FY18 Revenue (1) H1 FY18 Underlying EBITDA(2) Annualised revenue $55.5 $12.5 $110+ million million million At 31 Dec 2017 533.6% $14.7m $20m H1 FY17 Revenue H1 FY17 EBITDA 31 Dec 2016 $8.8 million -$2.2 million $90.0 million + 1. Includes other income 2. After adjusting for transaction
Slide 5: H1 FY18 Profit & Loss Summary
H1 FY18 Profit & Loss Summary Half on half growth ($m) H1 FY18 H1 FY171 Change YoY H2 FY17 H1 FY18 Revenue Revenue2 55.5 8.8 +46.7 51.0 533.6% Direct costs (23.6) (5.1) (22.9) From H1 FY17 Profit after direct costs 3 30.8 3.7 +29.9 28.1 Gross margin 56.5% 42.0% 55.1% (20.1) (10.2) +19.6 (17.0) H1 FY
Slide 6: Balance Sheet & Cash Flow Summary
Balance Sheet & Cash Flow Summary H1 FY18 Well funded for investment ($m) 31 Dec 2017 30 June 2017 Change in infrastructure Cash & cash equivalents 6.4 7.1 Raised $35m during the half to support further customer led Property, plant & equipment 153.9 140.4 +3.4 network expansion and investment Total
Slide 7: Half Year KPI's
Half Year KPI’s Owned and Operated Strategic Sites Monthly Revenue Fibre(Kms) 642km 280+ 8.8m At 31 Dec 2017 At 31 Dec 2017 Dec 2017 614km at 30 June 2017 265+ at 30 June 2017 7.6m (average H2 FY17) 7
Slide 8: Sales Performance
Sales Performance Sales people ● Record sales quarter July to New contracted revenue added September followed by another record sales quarter October to 72 December ● Benefit of record quarters to start (Superloop 22, Superloop+ 40, coming on in H2 and to be fully SuperBB 10) $13.8 realised by start
Slide 9: Singapore Performance
Singapore Performance H1 FY18 ($A)Millions 3 (A$m) H1 FY18 H2 FY17 H1 FY17 2 Recurring revenue 2.6 1.6 1.0 Non-recurring revenue 0.4 1.2 0.1 1 Total revenue 3.0 2.8 1.1 1H16 2H16 1H17 2H17 1H18 Direct costs (0.7) (0.6) (0.5) Recurring Revenue Non Recurring Revenue Profit after direct costs 2.3 2.2 0
Slide 10: Hong Kong Performance
Hong Kong Performance H1 FY18 ($A)Millions 4 (A$m) H1 FY18 H2 FY17 H1 FY17 3 Recurring revenue 0.4 0.1 0.0 2 Non-recurring revenue 4.1 0.9 0.0 1 Total revenue 4.5 1.0 0.0 1H17 2H17 1H18 Direct costs (1.6) (0.8) (1.3) Recurring Revenue Non Recurring Revenue Profit after direct costs 2.8 0.2 (0.3) (%)
Slide 11: Growth in Superbb / Community Broadband
Growth in Superbb / Community Broadband Highlights Superbb (formerly BigAir Community Broadband) Campus Solutions division signs new site management agreements with four new partners ● In H1 FY18 Superloop signed partnership agreements with 4 emerging student accommodation providers to manage the pr
Slide 12: INDIGO subsea cable H1 FY18 Achievements
SubPartners H1 FY18 Achievements ● Completed the drilling phase of the Company’s seaward facing 1,900m bore pipe project in Sydney ● Completion of the installation of the beach manhole and two seaward ducts in the bore pipe able to facilitate two (2) submarine cables and is in readiness for the INDI
Slide 13: Asia Pacific Network Infrastructure
Asia Pacific Network Infrastructure Australia Singapore Hong Kong Total Strategic Sites 31 Dec 2017 31 Dec 2017 30 June 2017 31 Dec 2017 30 June 2017 31 Dec 2017 30 June 2017 217km 217km 186km 176km 239km 221km Fibre Fibre Fibre Fibre Fibre (1) Fibre 200+ 200+ 57 48 25 17 Strategic sites Strategic s
Slide 14: Expanded Connectivity throughout Asia Pacific
Expanded Connectivity throughout Asia Pacific Superloop’s advanced fibre network reach San Jose Japan Los Angeles Hong Kong Guam Singapore Current IRU capacity Future INDIGO West (H1 2019) Future INDIGO Central (H1 2019) Perth Brisbane Metro Fibre Adelaide Sydney Melbourne Canberra Auckland Leased c
Slide 15: Strategic Acquisitions Recap
Strategic Acquisitions Recap
Slide 16: Acquisition of NuSkope
Acquisition of NuSkope NuSkope is a leading fixed wireless Internet Service Provider delivering advanced high-speed Internet access to homes, schools and businesses in South Australia. Its reputation for superior performance and customer service has seen it grow rapidly extending its network coverag
Slide 17: Acquisition of NuSkope: Strategic rationale
Acquisition of NuSkope Strategic rationale The acquisition of NuSkope has significant strategic benefits for the Superloop Group: - strategically aligned to our vision - accelerates our ability to expand our fixed wireless coverage - has a team that is focused, dedicated and culturally aligned with
Slide 18: Acquisition of GX2 Technology
Acquisition of GX2 Technology The acquisition of GX2 Technology has significant strategic benefits for the Superloop Group: - strategically aligned to our vision - accelerates expansion of our community broadband campus solutions to a broader customer base - has a team that is focused, dedicated and
Slide 19: Acquisition of GX2 Technology - Coverage Map
Acquisition of GX2 Technology - Coverage Map Location Sites AUSTRALIA 155 GX2 is a leading provider of managed guest WiFi UNITED STATES 75 connectivity including design, NEW ZEALAND 28 installation and support via PAPUA NEW GUINEA 18 their leading GX2 software PACIFIC ISLANDS 86 platform. UK & EUROP
Slide 20: Growth Engine for Future Earnings: Integration and Automation
Growth Engine for Future Earnings Integration and Automation
Slide 21: Aligning to Strategic Vision
Aligning to Strategic Vision Group Wholesale Cloud & Managed Services Broadband services to over Dark Fibre (Corporate) 40,000 individual subscribers. Metro Ethernet Wavelength Private Cloud Student Accom Fixed Wireless Hybrid Cloud Hospitality (via GX2) Desktop as a Service Resi Wireless (via NuSko
Slide 22: Streamlined Process and Automation
Streamlined Process and Automation Highlights Streamlining Operations Streamlining the Sales Process ● Significant reduction in supported hardware ● New simplified company-wide product catalogue platforms in network, compute and wireless reducing product complexity and importantly platforms focusing
Slide 23: Realising Synergies from Integration
Realising Synergies from Integration 23
Slide 24: Realising Synergies from Integration
Realising Synergies from Integration 2017 2018 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Primary Tasks Superloop Core network (Including BGL) Superloop Network (Customer Migration) Superloop+ Core Compute Superloop+ Compute (Customer Migration) Superloop+ (Other) Superloop Wire
Slide 25: Completion of Integration (CMS Example)
Completion of Integration (CMS Example) Integration and Consolidation Benefits Before AFTER 50 Racks Storage Vendors 7 2 Devices 83 12 Compute Vendors 5 2 Devices 50 12 Firewall Vendors 4 2 Devices 70 12 8 Racks + $1 million Compute collocation Sites 12 6 In annual savings Racks 50 8 For compute col
Slide 26: Long term reduction in cost base through integration
Long term reduction in cost base through integration 1H FY18 Expected operating cost savings over $2.4m p.a. Significant realisation of synergies Expected corporate overhead savings over $2.0m p.a. expected from integration and migration in the form of reduced costs into FY19 Expected annual cost sy
Slide 27: Growth Engine for Future Earnings: Network and Capability Expansion
Growth Engine for Future Earnings Network and Capability Expansion
Slide 28: Superloop - Bigger Network, Bigger Capability
Superloop - Bigger Network, Bigger Capability Highlights 100Gbps & 10Gbps Sites 100Gbps & 10Gbps Sites 100Gbps & 10Gbps Sites 100Gbps & 10Gbps Sites 100Gbps & 10Gbps Sites 28
Slide 29: New "Red" National Backbone
New “Red” National Backbone Highlights ● New 10/100G national backbone connecting all capital cities and most major cities and towns across Australia NBN PoI Connectivity ● 10G to most major regional towns/cities and underpins the expansion of our wireless, last mile and NBN connectivity 2 ● Expect
Slide 30: National Expansion/Rollout of Superbb and NuSkope
National Expansion/Rollout of Superbb and NuSkope Highlights ● Superbb/NuSkope already launching in Brisbane and Melbourne with first test customers already live and expected to be accepting orders from the public in March ● Aggressive rollout program focusing on metropolitan and regional areas usin
Slide 31: In Summary - Execute Towards our Vision
In Summary - Execute Towards our Vision Our Vision is to be the most trusted enabler of connectivity and managed services across Asia Pacific Region ● Achieve Synergies through full integration of major platforms ● Investment and development of streamlined processes and automation tools throughout t
Slide 32: Corporate Calendar
Corporate Calendar
Slide 33: Corporate Calendar
Corporate Calendar* 2018 Investor Strategy Briefing and April 2018 Shareholder General Meeting (date to be confirmed) FY18 Full Year Results Monday, 20 August 2018 2018 Annual General Meeting Monday, 29 October 2018 *Current proposed dates, subject to change 33
Slide 34: Thank You
Thank You
Slide 35: Appendix: Segment Results
Appendix Segment Results 35
Slide 36: H1 FY18 Segment Performance
H1 FY18 Segment Performance Superloop segment includes $3.5m revenue from INDIGO development revenue ($m) Superloop1 Superloop+2 Superbb3 Corporate Total Revenue2 27.9 18.0 9.8 (0.2) 55.5 Direct costs (7.5) (10.5) (5.8) 0.2 (23.6) Superbb segment includes Operating costs (10.9) (4.5) (1.4) (3.2) (20
Slide 37: H1 FY18 Segment Performance - Superloop
H1 FY18 Segment Performance - Superloop (previously Connectivity) H1 FY17 includes revenue of $1.1m from Singapore and ($m) Australia Singapore Hong Kong H1 FY18 H1 FY17 $0.02m from Hong Kong Revenue: Fibre 6.2 3.0 4.5 13.7 6.1 Fixed wireless 10.6 - - 10.6 0.9 H1 FY17 includes EBITDA of SubPartners
Slide 38: Property, plant & equipment / Depreciation and amortisation
Property, plant & equipment / Depreciation and amortisation H1 FY18 (A$m) H1 FY18 (A$m) H1 FY18 Property, plant & equipment Depreciation Australia 54.2 Australia 3.6 Australia includes $11.9m for INDIGO Singapore 44.7 Singapore 0.9 construction Hong Kong 55.0 Hong Kong 1.2 costs Total property, plan
Slide 39: INDIGO West
INDIGO West Route & Characteristics Indigo West will deliver cost effective, reliable, low-latency and diverse Tuas, Singapore connectivity between Singapore & Perth. In addition there are two fibre pairs connecting Singapore to Jakarta via a branching unit. Cable Features Specifications Cable Dista
Slide 40: INDIGO Central
INDIGO Central Route & Characteristics Indigo Central will deliver diverse, reliable and secure connectivity between Perth and Sydney, Australia. The new subsea route will complement the existing terrestrial networks across Australia. Cable Features Specifications Cable Distance (main trunk) 4,850 K
Slide 41: Additional Information and Disclaimer
Disclaimer Superloop Limited’s (Superloop) consolidated financial results (Results) are prepared in accordance with the Australian Accounting Standards, the Corporations Act 2001 (Cth) and Corporations Regulations 2001 (Cth). While much of the financial information in this presentation is based on t