Nextdc Limited · ASX:NXT
Nextdc — FY2018 Earnings Presentation
27 slides from Nextdc's earnings presentation, Aug 31, 2018
Slide 1: FY18 Full-Year Results
For personal use only FY18 FULL-YEAR RESULTS 31 AUGUST 2018 NEXTDC LIMITED ACN 143 582 521
Slide 2: FY18 Highlights
FY18 HIGHLIGHTS For personal use only REVENUE UNDERLYING EBITDA1 UTILISATION $161.5m $62.6m 40MW +31% +28% +28% CUSTOMERS PARTNERS INTERCONNECTIONS 972 470+ 8,671 +26% 60+ NETWORKS +37% 1. Excludes distribution income of $3.2m from NEXTDC’s 29.2% investment in Asia Pacific Data Centre Group (APDC),
Slide 3: FY18 Highlights
FY18 HIGHLIGHTS For personal use only ▪ Revenue from continuing operations up $38.0m1 (31%)1 to $161.5m Solid revenue ▪ Contracted utilisation up 8.7MW1 (28%)1 to 40.2MW growth ▪ Interconnections up 2,329 (37%)1 to 8,671, representing 6.5% of recurring revenue ▪ Underlying EBITDA up $13.6m1,2 (28%)1
Slide 4: Agenda
For personal use only FY18 AGENDA FY18 Financial Results FY18 Business Performance FY19 Outlook Appendices
Slide 5: Financial Results
For personal use only FY18 Full-Year Results FINANCIAL RESULTS
Slide 6: FY18 Profit and Loss summary
FY18 Profit and Loss summary For personal use only FY18 FY17 Change Note ($m) ($m) ($m) Data centre services Underlying Data centre services revenue 152.6 117.6 35.0 REVENUE EBITDA Other revenue Total revenue from continuing operations 9.0 161.5 6.0 123.6 3.0 38.0 30% 28% ▪ Net impact of rising en
Slide 7: Solid revenue and EBITDA growth
Solid revenue and EBITDA growth For personal use only 30% growth on FY17 28% growth on FY173,4 Recurring and project revenue1 Underlying EBITDA3,4 $62.6m Project revenue2 $152.6m Underlying EBITDA Recurring revenue $49.0m $117.6m $27.7m $89.3m $8.0m $58.7m $30.4m $9.0m ($16.1m) ($20.0m) FY13 FY14 FY
Slide 8: Revenue per unit metrics
Revenue per unit metrics Annualised revenue per sqm ($)1 Annualised revenue per MW ($m)2 For personal use only 4.36 9,897 4.09 4.18 3.97 4.00 8,863 8,421 7,741 6,980 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 ▪ Demonstrates ongoing growth in revenue per square metre, noting the deployment of
Slide 9: Business model delivers significant operating leverage
Business model delivers significant operating leverage For personal use only EBITDAR / Data centre services revenue1,2,3 Corporate costs / Data centre services revenue2,3 56% 53% 68% 49% (13%) 35% 30% 21% 20% (81%) FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 ▪ EBITDAR margin is a property-agno
Slide 10: Well capitalised for growth
Well capitalised for growth $371.6m $292.8m For personal use only 30 June 2018 30 June 2017 ($m) ($m) Cash and term deposits 418.0 368.3 Property, plant, equipment 679.9 434.3 $33.4m $62.5m $418.0m Investment in APDC 62.5 – $368.3m Total assets 1,235.9 852.4 Interest-bearing liabilities 304.1 302.3
Slide 11: Business Performance
For personal use only FY18 Full-Year Results BUSINESS PERFORMANCE
Slide 12: Strong growth in customers and connectivity
Strong growth in customers and connectivity For personal use only Customers Interconnection1 (number of cross connects) 8,671 972 772 6,342 647 4,575 478 2,893 302 132 1,488 513 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 ▪ Strong growth in interconnection drives average interconnect
Slide 13: Diversified recurring revenue model
Diversified recurring revenue model For personal use only 5% Customer by industry1,2 Utilisation by density1,3 6% Enterprise Government More than 6kW 8% Cloud Financial Services 32% 35% 36% 4kW to 6kW Connectivity Digital Media 3kW or less 13% System Integrators 16% Cloud, connectivity and channel p
Slide 14: Utilisation
Utilisation Installed capacity1 vs contracted utilisation Billing vs contracted utilisation For personal use only ▪ 87% of installed capacity was contracted at 30 June 2018 ▪ Contracted utilisation up 8.7MW (28%) to 40.2MW since 30 June 20174 ▪ Over 10MW of new capacity added since 30 June 2017 ▪ Bi
Slide 15: Facilities capacity and utilisation
Facilities capacity and utilisation As at 30 June 2018 45 For personal use only Contracted utilisation ▪ B2 Brisbane and M2 Melbourne: B2 and M2 40 Future build developments opened in FY18 with 2MW of new 35 Build in progress capacity in each market. M2 subsequently Built expanded to 5MW of new capa
Slide 16: FY19 Outlook
For personal use only FY18 Full-Year Results FY19 OUTLOOK
Slide 17: FY19 Outlook
FY19 Outlook Revenue between $194m to $200m1 (up 20% to 24% on FY18)1: For personal use only Strong ▪ Revenue growth underpinned by long-term customer contracts revenue growth ▪ Connectivity revenues supported by 37% increase in cross connects during FY18 ▪ Expect material new customer wins to drive
Slide 18: Appendices
For personal use only FY18 Full-Year Results Appendices
Slide 19: Australia's largest hyperscale data centre solutions provider
Australia’s largest hyperscale data centre solutions provider For personal use only BRISBANE B1 2.25MW B2 12MW 50,000 SYDNEY RACKS1 S1 16MW S2 30MW S3 80MW MELBOURNE M1 15MW M2 40MW Data M3 80MW CANBERRA C1 4.8MW 8 Centres +3 MORE COMING PERTH P1 6MW P2 20MW 1. At full fit-out
Slide 20: FY19 New Accounting Standards
For personal use only FY19 NEW ACCOUNTING STANDARDS
Slide 21: New accounting changes – FY18
New accounting changes – FY18 For personal use only 2018 Statutory AASB 15(1) AASB 16(1) 2018 Pro Forma(1) Disclosure Note ($m) ($m) ($m) ($m) Data centre services revenue 2 152.6 (5.2) 147.3 Other revenue 9.0 9.0 Total revenue from continuing operations 161.5 (5.2) 156.3 Direct costs (power and con
Slide 22: New accounting changes – FY19 Outlook
New accounting changes – FY19 Outlook For personal use only Based on prior accounting standards Based on new accounting standards1 Guidance Growth on FY18 Guidance Growth on FY18 Revenue $194m to $200m $35m (22%)3 $183m to $188m $29m (19%)3 Underlying $75m to $80m $15m (24%)3 $83m to $87m $9m (12%)3
Slide 23: Case Studies
For personal use only CASE STUDIES
Slide 24: Case study – B1 Brisbane
1,2 Case study – B1 Brisbane FY13 Facility EBITDA ($m) FY14 FY15 FY16 FY17 FY18 12.0 100% For personal use only Billing utilisation Highlights 10.0 Facility EBITDA 80% ▪ NEXTDC’s first facility, commenced operations 8.0 60% in October 2011 6.0 ▪ Break-even reached after 9 months of operation 40% 4.0
Slide 25: Case study – M1 Melbourne
1 Case study – M1 Melbourne FY13 FY14 Facility EBITDA ($m) FY15 FY16 FY17 FY18 50.0 100% For personal use only Highlights 40.0 Billing utilisation 80% Facility EBITDA ▪ NEXTDC’s second facility, commenced 30.0 60% operations in September 2012 20.0 ▪ Break-even reached after 11 months of 40% 10.0 ope
Slide 26: Case study – S1 Sydney
1 Case study – S1 Sydney FY14 Facility EBITDA ($m) FY15 FY16 FY17 FY18 40.0 100% For personal use only Highlights 30.0 Billing utilisation 80% Facility EBITDA ▪ NEXTDC’s fourth facility commenced 20.0 60% operations in September 2013 ▪ Break-even reached after 7 months of 10.0 40% operation 0.0 20%
Slide 27: For personal use only
For personal use only 27 investorrelations@nextdc.com linkedin.com/company/nextdc plus.google.com/+nextdc 13 6398 twitter.com/nextdc youtube.com/user/nextdatacentre facebook.com/datacentres www.nextdc.com/blog NEXTDC FY18 Results