Time Dotcom Bhd. · MYX:TIMECOM
Time Dotcom Bhd — Shareholder Meeting (February 2023)
28 slides from Time Dotcom Bhd's shareholder meeting presentation, Feb 15, 2023
Slide 1: Extraordinary General Meeting 15 February 2023
Iso rae oe: tvwime EXTRAORDINARY GENERAL MEETING vite 15 FEBRUARY 2023 \ : A
Slide 2: Disclaimer
DISCLAIMER This presentation and the discussion following may contain forward looking statements by TIME dotCom Berhad (“Time”) related to financial, market or industry trends for a future period. These forward-looking statements involve known and unknown risks and uncertainties which may cause the
Slide 3: Supercharging AIMS to grow across Asia
SUPERCHARGiNG AIMS TO GROW ACROSS ASiA
Slide 4: Introduction
INTRODUCTiON TIME
Slide 5: Background of Proposed Transactions
Background of Proposed Transactions EGM 2023 • In late 2021, Time carried out a strategic review of the data centre landscape, considering the increased attention the sector was receiving as well as the rapid expansion of data centre sites happening globally • We decided to seek a strategic partner
Slide 6: Summary of Transaction Terms
Summary of Transaction Terms EGM 2023 Key terms Summary DigitalBridge acquire stakes in: (i) AIMS HoldCo (Malaysia and Singapore businesses) (“Proposed Transaction Structure Transaction 1”); and (ii) AIMS Thailand (Thailand business) (“Proposed Transaction 2”) Valuation RM3.2 billion (100% enterpris
Slide 7: The Strategic Rationale
THE STRATEGiC RATiONALE TIME
Slide 8: Overview and History of AIMS
Overview and History of AIMS EGM 2023 • AIMS has grown significantly since its inception, in particular since its acquisition by Time in 2012 AIMS standalone AIMS part of Time Group 1990 2000 2006 2012 2019 2020 2021 2022 Incorporation Refocusing of MBO of AIMS Acquisition of Acquisition of Opening
Slide 9: Strong and Growing Addressable Market Opportunity for AIMS
Strong and Growing Addressable Market Opportunity for AIMS EGM 2023 • Data centre demand across ASEAN is expected to remain strong with the following key drivers: o Cloud adoption (public and private) o Edge nodes moving closer to the end-user o Continued growth in data exchange and consumption Co-l
Slide 10: The Strategic Rationale for the Partnership
The Strategic Rationale for the Partnership EGM 2023 • Based on the strategic review carried out, Time believes there are significant opportunities in underserved markets across ASEAN and beyond, particularly in the highly connected, ecosystem-centric data centre segments that AIMS operates in • Key
Slide 11: Overview of DigitalBridge
Overview of DigitalBridge EGM 2023 • Who is DigitalBridge? o One of the world’s largest digital infrastructure firms. It has investments across five key digital infrastructure verticals: data centres, macro cell towers, fibre networks, small cells, and edge infrastructure o Shareholder in 9 data cen
Slide 12: Supercharging AIMS
Supercharging AIMS EGM 2023 • What Time and DigitalBridge intend to do together o Bring together a unique combination of two entities with distinctly different backgrounds – a focused telecoms and data centre operator with assets across ASEAN, and a digital infrastructure fund that has fuelled the g
Slide 13: Continued Commitment by Time to AIMS
Continued Commitment by Time to AIMS EGM 2023 • Time continues to be committed to the data centre business o Time will continue to have data centre products available for its customers, offered in a seamless and integrated manner o Time will retain significant economic exposure to the data centre sp
Slide 14: Transaction Structure and Utilisation of Proceeds
TRANSACTiON STRUCTURE AND UTiLiSATiON OF PROCEEDS TIME
Slide 15: Transaction Structure Overview
EGM 2023 Transaction Structure Overview • DigitalBridge will acquire shareholdings in AIMS HoldCo and AIMS Thailand based on a 100% enterprise valuation of RM3.2 billion o Acquisition of 490,000 ordinary shares and 699,850 irredeemable convertible preference shares (ICPS) in AIMS HoldCo from Time o
Slide 16: Shareholding Overview
EGM 2023 Shareholding Overview Current Shareholding (AIMS HoldCo) Shareholding Post Transaction (AIMS HoldCo) Time DigitalBridge Time Group 100% OS: 51% OS: 49% ICPS: 0% ICPS: 100% AIMS HoldCo AIMS HoldCo 100% 100% 100% 100% 100% 100% AIMS Data AIMS AIMS AIMS Data AIMS AIMS Centre Cyberjaya Singapor
Slide 17: Attractive valuation secured for AIMS
EGM 2023 Attractive valuation secured for AIMS • Valuation for AIMS business is attractive on an implied EV/EBITDA basis, and also compares favourably to the current book value of RM240 million and the original TIME acquisition cost of AIMS in 2012 of RM119 million 100% Enterprise Valuation RM3,201.
Slide 18: Utilisation of Proceeds
EGM 2023 Utilisation of Proceeds • Time expects to receive approximately RM2.0 billion of proceeds from the transactions • Time intends to use the proceeds as follows: Estimated amount % of total estimated Purpose (RM million) proceeds Proposed special dividend 1,000 49.8 Capital expenditure 500 24.
Slide 19: Powering Time's Other Segments
POWERiNG TiME’S OTHER SEGMENTS TIME
Slide 20: AIMS in the Context of Time
AIMS in the Context of Time EGM 2023 • AIMS is a strategically important part of Time, although its financial contribution to the Group is relatively modest at 13% of Time Group Revenue and 9.5% of Time Group PAT • Time will benefit from meaningful shareholding in AIMS going forward, whose profitabi
Slide 21: Time Segment Growth
Time Segment Growth EGM 2023 • Time has recorded strong growth momentum in its 3 core market segments, even after stripping out AIMS • Proceeds from the transaction will be utilised to continue investing in and supercharging these fast-growing segments • Capital expenditure historically used for dat
Slide 22: Conclusion
CONCLUSiON TIME
Slide 23: Timeline
Timeline EGM 2023 • The Proposed Transactions are expected to close by early May 2023 (tentative), upon certain conditions precedent (incl. shareholder approval at this EGM) being satisfied Announcement of Proposed Transactions Completion Early May 2023 22 Nov 2022 15 Feb 2023 (tentative) Extraordin
Slide 24: Conclusion
Conclusion EGM 2023 This Strategic Partnership is a strategically and financially solid move o Enables Time to accelerate the growth of its data centre business and realise its regional data centre ambitions o Crystallises strong value and accords Time with more flexibility to optimise its capital a
Slide 25: Questions from MSWG
QUESTIONS FROM MSWG TIME 25
Slide 26: MSWG Question 1: ASEAN markets for data centres
Question 1 EGM 2023 AIMS Data Centre Holdings Sdn Bhd (“AIMS”) will be the primary investment vehicle in relation to future investments and expansion of highly connected, ecosystem-centric data centre business in existing and new markets in the ASEAN region and beyond, with Malaysia as the core hub
Slide 27: MSWG Question 2: Funding of AIMS expansion
Question 2 EGM 2023 AIMS intends to aggressively expand data centre business in existing and new markets in ASEAN region and beyond. As at 31 December 2021, its core subsidiary, AIMS Data Centre Sdn Bhd’s cash and cash equivalents was at RM15.062m and on the other side of the balance sheet, the tota
Slide 28: Thank You
THANK YOU TIME
TIME dotCom Berhad — Shareholder Meeting (February 2023) on 6ix