Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — Q3 FY2018 Earnings Presentation
20 slides from Netlink Nbn Trust's earnings presentation, Feb 5, 2018
Slide 1: Financial Results for the period 1 Oct 2017 to 31 Dec 2017 (Q3 FY18)
Financial Results for the period 1 Oct 2017 to 31 Dec 2017 (“Q3 FY18”) 5 February 2018 The joint issue managers of the initial public offering and listing of NetLink NBN Trust were DBS Bank Ltd., Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch. The joint underwriters of the initia
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: Agenda
Overview of the Trust Group | Page 3 Business Performance | Page 9 Financial Results | Page 13 Our Focus for FY18 | Page 18 3
Slide 4: Next Gen NBN industry structure
Next Gen NBN industry structure The Next Gen NBN industry comprises three distinct layers to ensure open access to the Next Gen NBN for all participants Consumer / End Users Services (including services & customer-premises equipment) Retail Services Providers (RSPs) Purchase bandwidth connectivity f
Slide 5: The Trust Group's nationwide network coverage
The Trust Group’s nationwide network coverage An ubiquitous and hard-to-replicate network (1) 10 (2) Central ~16,200km (2) Offices of Ducts ~76,000 km (2) of ~62,000 (2) Fibre Cables Manholes Primary ring Secondary ring Star distribution 1. According to Media Partners Asia (MPA) 2. As of 31 Mar 2017
Slide 6: Scope of services provided by the Trust Group
Scope of services provided by the Trust Group 1 2 3 Use of other passive Provision of other End-user fibre connections, currently for broadband, infrastructure to provide non-fibre ancillary IPTV and VoIP services fibre connections services a b e g NLT Residential (1) Non-residential (1) Ducts and m
Slide 7: Unit overview
Unit overview Listing Date 19 July 2017 Closing Unit Price S$0.83 (as at 31 Dec 2017) SGX Code CJLU Market capitalization Total No. of Units 3,896,971,100 S$3.23 billion (as at 31 Dec 2017) S$ Volume 0.860 200,000,000 180,000,000 0.850 160,000,000 0.840 140,000,000 0.830 120,000,000 0.820 100,000,00
Slide 8: Analyst coverage
Analyst coverage Research House Bank of America, Merrill Lunch HSBC Bank Citibank Morgan Stanley Daiwa Capital Markets UBS DBS New Street Research Deutsche Bank UOB Kay Hian Goldman Sachs 8
Slide 9: Business Performance
Overview of the Trust Group | Page 3 Business Performance | Page 9 Financial Results | Page 13 Our Focus for FY18 | Page 18 9
Slide 10: Fibre connections
Fibre connections (As at 31 Dec 2017) Residential Non-Residential 1,474,069 Home Passed 31,183 Building Reached 1,337,919 Home Reached 43,228 End-Users 1,165,028 End-Users 10
Slide 11: Residential fibre connections
Residential fibre connections ’000 1,200 1,183.4 1,165.0 1,142.6 • 1.17m residential connections as at 1,094.8 1,100 31 Dec 2017 • Residential connections continued to 1,000 grow steadily. 938.0 900 800 FY16A FY17A Q2 FY18A Q3 FY18A FY18E 11
Slide 12: Non-residential fibre connections
Non-residential fibre connections ’000 50 43.2 42.8 42.0 40 38.5 • 43,228 non-residential connections as at 31.5 31 Dec 2017 30 • Continue to support RLs to acquire new corporate customers 20 10 0 FY16A FY17A Q2 FY18A Q3 FY18A FY18E 12
Slide 13: Financial Results
Overview of the Trust Group | Page 3 Business Performance | Page 9 Financial Results | Page 13 Our Focus for FY18 | Page 18 13
Slide 14: Results highlights
Results highlights (Financial Period 1 Oct 2017 to 31 Dec 2017) (1) Central Office Revenue 6% Ducts & Manhole Revenue S$83.4 million Service Revenue 10% Other Revenue EBITDA (2) S$63.2 million 2% Residential Connections Co-location Revenue 62% 5% EBITDA Margin 75.7% Key revenue Installation Revenue
Slide 15: Profit & loss statement
Profit & loss statement Financial Performance Q3 FY18 (S$'000) Actual(1) Forecast(2) Variance (%) Revenue 83,417 82,905 0.6 EBITDA 63,159 57,006 10.8 EBITDA margin (%) 75.7% 68.8% Depreciation & amortisation (39,039) (38,747) (0.8) Net finance charges (4,164) (4,470) 6.8 Profit before tax 19,956 13,
Slide 16: Profit & loss (variance against forecast)
Profit & loss (variance against forecast) Revenue was higher than forecast mainly due to higher monthly recurring Residential and Non-Residential connection revenue, higher Ducts & Manhole Revenue increased Services revenue and Central Office revenue. 0.6% This was partially offset by lower installa
Slide 17: Balance sheet
Balance sheet Cash balance S$129 million Gross debt S$591 million Net assets S$3,152 million Debt / EBITDA(1) 2.2x EBITDA interest cover (1) 8.0x Net assets per unit (2) S$0.81 (1) Ratios calculated based on NetLink Trust Group’s trailing 12-month financials (2) Net assets per unit represents equity
Slide 18: Our Focus for FY18
Overview of the Trust Group | Page 3 Business Performance | Page 9 Financial Results | Page 13 Our Focus for FY18 | Page 18 18
Slide 19: Our focus for FY18
Our focus for FY18 • Deliver the financial performance and distribution forecast as stated in the Prospectus. • Utilising the Hougang Central Office to serve new housing estates in Sengkang and Punggol. • Continuing to expand our network in new housing estates, e.g. Tengah estate. • Supporting the R
Slide 20: Thank You
Thank You Investors and Media Mr. Victor Chan investor@netlinknbn.com 20