Inve stor Pr e se nta tion.
Mar c h 2017
Inve stor Pr e se nta tion. Mar c h 2017 2 Ke y Busine ss - - PowerPoint PPT Presentation
Inve stor Pr e se nta tion. Mar c h 2017 2 Ke y Busine ss Highlights. 2 E BIT DA CAGR of 19.4% ove r the la st 3 ye a rs Hig h c a shflow c onve rsion a nd ze ro de bt A diffe re ntia te d ma rke t offe ring a c ross hybrid
Mar c h 2017
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
2
BIT DA CAGR of 19.4% ove r the la st 3 ye a rs
a nd te le c om
c ontra c ts
sc ore of +66
xpose d to the strong ong oing mig ra tion of busine ss a nd g ove rnme nt
2
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
Busine ss Ar e a s Pe r c e nta ge of R e ve nue & E BIT DA in H1 F Y17 Wha t we do
F
se rvic e s. We a re the te le c o m tha t d o e s e ve rything re fre shing ly d iffe re nt. We a re whe re the Ma c q ua rie sto ry sta rte d F
in hyb rid I T . We inte g ra te c o lo c a tio n, c lo ud , & d e d ic a te d se rve rs. Diffe re nt a p p lic a tio ns ne e d d iffe re nt typ e s o f ho sting . We ma na g e it We a re the Austra lia n sp e c ia lists in c yb e r se c urity, se c ure c lo ud & c o lo c a tio n fo r F e d e ra l Go ve rnme nt. We d e live r se rvic e s to 42% o f F e d e ra l Go ve rnme nt a g e nc ie s
Va lue pr
Custo me r Se rvic e , Pric e , Cho ic e , F le xib ility, Co ntro l Custo me r Se rvic e , Sp e c ia lise d a nd Co mp lia nt Ho sting . F
Pub lic Clo ud Custo me r Se rvic e , SI G Ac c re d ita tio n, Cyb e r Se c urity, ASD – Ce rtifie d Clo ud , Da ta Ce ntre in Ca nb e rra
Compe titor s Pe ople / Skill
Ge ne ra list fo r Vo ic e & Mo b ile s T C fo r Da ta & Co L
Ho sting Sp e c ia lists: Custo m a nd Co mp lia nt Se c ure Ho sting Sp e c ia list kno w Go ve rnme nt Drive rs 67% 33% 50% 50%
3
Ma c qua rie T e le c om Group
Hig h Qua lity & Dive rse Corpora te & Gove rnme nt Custome rs.
T e le c om Cloud Se r vic e s Gove r nme nt
s a c c ount for c . 20% of r e ve nue in CY 2016
e de r a l Gove r nme nt a c c ounts for a qua r te r
s
a c ts a r e sig ne d for 2 or 3 ye a r te r ms
vic e s inc r e a sing be twe e n the busine sse s – na tur a l fit a s hosting c ustome r s ne e d te le c om & vic e ve r sa
| Inve stor Pre se nta tion
4
Ma c qua rie T e le c om Group | Inve stor Pre se nta tion
Ma c qua rie T e le c om Group
c ustome r e xpe rie nc e is c ore to our se rvic e
for Q2 F Y17 – Australian le ading NPS
asse sse d on a sc ale of -100 to +100, whe re a sc ore of gre ate r than +50 is e xc e lle nt
"how like ly is it that you would re c omme nd
| Inve stor Pre se nta tion
NPS Q2F Y17i
he Custo me r E xpe rie nc e Co mpa ny – Industry ra ng e s fro m ‘ NPS Pulse Che c k’ b a se d o n Q42016 – se e http:/ / c usto me re xpe rie nc e .c o m.a u/ nps-b e nc hma rk/
11
25 58 66
Sma lle r T e lc o Ra ng e L a rg e r T e lc o Ra ng e
+38.4%
NPS
+2.7%
Cross- se ll
De btor DSO
+5.5%
Custome r re te ntion
Ke y me tr ic s sinc e Q4F Y14 to Q2F Y17
45
Na tio na l L e a de rs (+45)
6
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
T he ma rke t is moving to c loud both a t the infra struc ture a s a se rvic e le ve l whe re we ope ra te a nd a t a softwa re a s a se rvic e le ve l. Ma c qua rie c ompe te s a t a n infra struc ture le ve l a nd our c ustome rs a re the softwa re a s a se rvic e c louds, a s we ll a s c ompa nie s tha t run the ir own softwa re but wa nt a more re lia ble da ta c e ntre tha n the ir offic e . T he Austra lia n c oloc a tion ma rke t is e stima te d to be g rowing by 12% CAGR to $2bn by 2021 (F rost & Sulliva n 2016) & c loud ma rke t by 15% CAGR to 2019 (Ga rtne r).
7
Ma c qua rie T e le c om Group | Inve stor Pre se nta tion
One stop shop for hybr id IT solution
stra te g y
he b re a dth o f o ur pro duc t ra ng e se ts us a pa rt fro m o ur c o mpe tito rs: c o lo c a tio n, de dic a te d se rve rs a nd priva te c lo ud
de live ry, to inte g ra tio n a nd the n suppo rt & b illing
Custom and c omplianc e
se rvic e s & Go ve rnme nt to c o mply with sta nda rds
Built on mar ke t le ading te c hnologie s
he re a re a lso de e pe r po o ls o f skille d sta ff who ma na g e the se te c hno lo g ie s
MC a nd Cisc o
Custome r e xpe r ie nc e
Y17 – Austra lia n le a ding NPS
Ofte n c ustome r s c hoose the public c loud for the fr
e ima g e s. We a r e usua lly se e n by our c ustome r s a s c omple me ntar y with public c loud, r a the r tha n substitute s.
8
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
9
Ma c qua rie T e le c om Group | Inve stor Pre se nta tion
One stop shop for hybr id IT solution tailor e d for Gove r nme nt
his me a ns we c a n o ffe r a uniq ue le ve l o f a c c o unta b ility fo r the e ntire c usto me r e xpe rie nc e jo urne y fro m c o mme rc ia ls to se rvic e de live ry, to inte g ra tio n & the n suppo rt & b illing
he b re a dth o f o ur pro duc t se ts us a pa rt fro m o ur c o mpe tito rs: c o lo c a tio n to c lo ud
Cybe r se c ur ity
his pro te c ts the a g e nc ie s syste ms & the ir c lo ud e nviro nme nts
Our c loud is built on mar ke t le ading te c hnologie s
MC, Cisc o a nd VMwa re & is c e rtifie d b y the Austra lia n Sig na ls Dire c to ra te (De pa rtme nt o f De fe nc e )
c o st & time to do the re -pla tfo rming tha t pub lic c lo uds re q uire
he re a re a lso de e pe r po o ls o f skille d sta ff who ma na g e the se te c hno lo g ie s
Custome r e xpe r ie nc e
Y17 – Austra lia n le a ding NPS. T he suppo rt is de live re d b y Austra lia n e ng ine e rs, o f whic h o ve r 100 a re c le a re d b y the Austra lia n Go ve rnme nt
Ma c qua r ie diffe r e ntia te s itse lf thr
se c ur ity & de live r ing Gove r nme nt se c ur ity g r a de c loud & c oloc ation solutions. We ha ve 42% of the Austr a lia n Gove r nme nt a s c ustome r s
10
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
Cybe r Se c ur ity Ne twor k Se c ur e Cloud
11
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
Pr ic e NPS
he Company’s diffe r e ntiation in the c or por ate mar ke t is r e infor c e d by its outstanding c ustome r se r vic e e xpe r ie nc e & c ompe titive pr ic ing
ie T e le c om’s foc us on c ustome r se r vic e e xpe r ie nc e has be e n a major dr iving for c e be hind its c ontinue d gr
mar ke t le ading Ne t Pr
Sc or e (NPS)
ie be ne fits fr
migr ation to NBN
c or por ate c ustome r mar ke t
12
Ma c qua rie T e le c om Group
Ma c qua rie T e le c om Group
e nsure fa ilo ve r o f c ritic a l wo rklo a d s
so lutio n
Inte llic e ntre 1 Sydne y Inte llic e ntre 2 Ma c q ua rie Pa rk Inte llic e ntre 4 Bunke r, Ca nb e rra
| Inve stor Pre se nta tion
14
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
– first re ve nue c o mme nc e s in Ma rc h 2017
a rg e ho sting sa le s to ta ling 0.5MW ha ve b e e n ma de in H1 F Y17: – c o -lo c a tio n de a l with Ac c e nture Austra lia – c o -lo c a tio n/ infra struc ture se rvic e s de a l with Virtustre a m, a De ll T e c hno lo g ie s Co mpa ny
nte llic e ntre 2 e stima te d to a c hie ve a n a ve ra g e o f $4.5m pe r MW in a nnua lise d re ve nue b y F Y19 a s ne w la rg e r c usto me rs turn up c a pa c ity
T so lutio n with ma na g e d c lo ud
15
Ma c qua rie T e le c om Group
Da ta Ha ll 4 will b e c o mple te d in Se pte mb e r 2017 Da ta Ha ll 2 is 2/ 3 F ull Da ta Ha ll 1 is F ull Me c ha nic a l E le c tric a l Pla nt
Da ta Ha ll 3 is pre so ld with the first sta g e c o mple te d & b illing fro m Ma rc h 2017 Sta g e 2 will invo lve a d d itio na l me c ha nic a l, e le c tric a l & pla nt c a pe x inve stme nt & inc re me nta l re ve nue c o mme nc ing in F Y18
| Inve stor Pre se nta tion
Ba se d o n histo ric a l sa le s ra te s, we e stima te we will b e lo o king to b uild o r b uy ne w Syd ne y d a ta c e ntre c a pa c ity fo r la te r in F Y19
16
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
−
re ve nue CAGR o f 3.9%
−
E BI T DA CAGR o f 19.4%
−
E BI T DA ma rg in impro ve d fro m 12.6% to 17.8%
Y18
18
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
As o ur ne w stra te g y b e g a n to de live r fro m 2HF Y15, fully fra nke d divide nds o f $0.25 pe r sha re in e a c h ha lf.
19
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
−
re ve nue CAGR o f 9.0%
−
E BI T DA CAGR o f 41.1%
−
E BI T DA ma rg in impro ve d to 25.7%
inc re a se s
Y18
20
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
−
re ve nue CAGR o f 1.3%
−
E BI T DA CAGR o f 5.7%
E BI T DA ma rg in o f 13%
Y18
68.9 67.0 68.2 70.0 68.9 71.2
2H14 1H15 2H15 1H16 2H16 1H17
Telecom Revenue ($m)
8.1 7.7 8.8 9.3 9.0 9.3
2H14 1H15 2H15 1H16 2H16 1H17
Telecom EBITDA ($m)
21
Ma c qua rie T e le c om Group
c e ntre c a pa c ity, inc re a se d po we r supply, ne w te c hno lo g y c re a tio n & tra nsfo rma tio na l inve stme nt.
the fito ut o f Da ta Ha ll 4.
e le c o m b usine ss, a c urre nt e xa mple is
pla tfo rm.
Y18 ha ve no t b e e n d e c id e d , ho we ve r pre vio usly a nno unc e d Gro wth Ca pe x in pro g re ss o f $9m will b e inc urre d in F Y18.
c a pe x.
fo r a d d itio na l c a b ling , ra c ks, se rve rs & sto ra g e tha t e na b le us to pro visio n ne w c usto me r o rd e rs.
so ftwa re d e ve lo pme nt & re pla c ing o ld e r fa c ility e q uipme nt.
in the ra ng e o f $18-22m d e pe nd ing o n o ur d a ta c e ntre sa le s suc c e ss & pro d uc t mix.
| Inve stor Pre se nta tion
22
Ma c qua rie T e le c om Group
| Ha lf Ye a r Re sults 2017
I nte r-se g me nt re ve nue re late s to se rvic e s pro vide d b y the Ho sting se g me nt to the T e le c o m se g me nt, e liminate d o n c o nso lidatio n.
$m 1H16 2H16 1H17 1H17 v 1H16 % c ha ng e
Se rvic e Re ve nue Te le c o m 70.0 68.9 71.2 1.2 2% Ho sting 32.5 35.9 37.8 5.3 16% Inte r-se g me nt (2.4) (2.3) (2.2) 0.2
T
vic e R evenue 100.1 102.5 106.8 6.7 7%
EBITDA Te le c o m 9.3 9.0 9.3
6.3 7.7 9.7 3.4 54%
T
BI T DA 15.6 16.7 19.0 3.4 22%
De pre c ia tio n (12.9) (12.5) (10.8) 2.1
E BI T 2.7 4.2 8.2 5.5
Inte re st 0.2 0.3 0.3 0.1
NPBT 2.9 4.5 8.5 5.6
Ta x (0.9) (1.2) (2.3) (1.4)
NPAT 2.0 3.3 6.2 4.2
23
Ma c qua rie T e le c om Group
fro m $7.5m in the pc p, d rive n b y stro ng c usto me r d e ma nd .
c a pa c ity a t Inte llic e ntre s 2 & 4 ($7.3m) & d a ta ne two rking te c hno lo g y & ne two rk
inc lud e d the re c e ipt o f the se c o nd tra nc he
ina l d ivid e nd fo r F Y16 o f 25c ps ($5.2m) wa s pa id d uring the ha lf.
24
| Inve stor Pre se nta tion
$m F Y16 1H17
Ca sh a nd c a sh e q uiva le nts 36.5 24.7 O the r c urre nt a sse ts 19.8 21.3 O the r no n-c urre nt a sse ts 63.5 76.0
T
119.8 122.0
Cre d ito rs 27.1 26.1 O the r L ia b ilitie s 10.3 12.4
T
ia b ilitie s 37.4 38.5 T
q uity 82.4 83.5 $m 1H16 1H17
Ca sh flo w s fro m O p e ra ting Ac tivitie s 12.3 13.9 Ca sh flo w s fro m Inve sting Ac tivitie s 32.8 (20.5) Ca sh flo w s fro m Fina nc ing Ac tivitie s (26.2) (5.2)
Ne t inc r e a se / (de c r e a se ) in Ca sh He ld 18.9 (11.8)
O p e ning Ca sh a nd c a sh e q uiva le nts 6.4 36.5
Closing Ca sh a nd c a sh e q uiva le nts 25.3 24.7
24
Ma c qua rie T e le c om Group
Y17 E BIT DA is e xpe c te d to b e a ppro xima te ly $37 to $39 millio n.
c o ntinue to g ro w in 2H F Y17 ho we ve r pro fita b ility will b e impa c te d b y a d d itio na l sta ff c o sts in the sa le s te a m & inc re a se d e le c tric ity pric e s.
initia l b illing in Q3.
e le c o m’ s inve stme nt in ne w d a ta ne two rking te c hno lo g y & ne two rk o pe ra tio ns c e ntre inso urc ing will re sult in a d d itio na l sta ff c o sts b e ing inc urre d in 2H F
he se inve stme nts will ma te ria lly re d uc e c o sts & furthe r impro ve se rvic e d e live ry in F Y18.
e xpe nd iture & d e pre c ia tio n a nno unc e d a t the AGM.
25
| Inve stor Pre se nta tion
$m F Y17 ($m)
E BIT DA Busine ss a s usua l c a pe x Gro wth c a pe x – Ho sting – T e le c o m De pre c ia tio n 37 - 39 21 - 23 13 - 15 6 - 7 21 - 23 25
Ma c qua rie T e le c om Group
| Inve stor Pre se nta tion
No e xpre ss o r implie d wa rra nty is g ive n a s to the a c c ura c y o r c o mple te ne ss o f the info rma tio n in this do c ume nt o r a ny c o rre spo nding pre se nta tio n. T his do c ume nt ma y c o nta in fo rwa rd lo o king sta te me nts tha t, while use d in g o o d fa ith, re fle c t Ma c q ua rie T e le c o m Gro up L imite d’ s c urre nt inte ntio n, pla ns, e xpe c ta tio ns, a ssumptio ns a nd b e lie fs a b o ut future e ve nts a nd a re sub je c t to risks, unc e rta intie s a nd o the r fa c to rs, ma ny o f whic h a re o utside the c o ntro l o f Ma c q ua rie T e le c o m Gro up L imite d. F a c to rs tha t c o uld c a use a c tua l re sults to diffe r ma te ria lly fro m the e xpe c ta tio ns e xpre sse d o r implie d in the fo rwa rd-lo o king sta te me nts inc lude kno wn a nd unkno wn
e le c o m Gro up L imite d’ s c urre nt inte ntio ns, pla ns, e xpe c ta tio ns, a ssumptio ns a nd b e lie fs a b o ut the future , disc lo sure s he re in sho uld no t b e re lie d upo n a s a dvic e to inve sto rs o r po te ntia l inve sto rs a nd sho uld b e vie we d with c a utio n.