2014 Financial Results Delivering the Gigabit Revolution

Transcription

1 2014 Financial Results Delivering the Gigabit Revolution March 2015 CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 1

2 Builder of Gigabit Cities Our business Design, build, own and operate fibre networks in mid-sized UK cities The only wholesale utility dark fibre provider of shared infrastructure A de-risked model with long term contracts Assets & contracts 200+ long-term contracts, in 60 towns and cities, 543km metro local access route fibre 6 Gigabit City Projects - contracts across all market verticals Joint venture with Sky & TalkTalk to provide fibre-tothe-home (FTTH) in York Market opportunity Target 100 mid-sized cities. Active dialog and negotiations with +25 cities 25 Business Service Providers on-board Consumer FTTH and Mobile FTTT both significant potential accelerators CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 2

3 2014 Operating Highlights Capitalization 16.5m equity raised on admission to AIM Oversubscribed 30m secondary placing 46.5m Network Deployments Peterborough network delivered on time Business uptake ahead of expectation 64 business customers at period end contracted Footprint Expansion Four new city wins, 1 ahead of expectation New contracts covering 366km of metro fibre Diversification of anchor strategy validated Accelerators National framework in mobile established with EE and Three UK Ground-breaking FTTH JV with Sky and TalkTalk CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 3

4 Building a highly scalable footprint All market segments now in deployment Gigabit Cities Shared Infrastructure Public Sector Sites (Cumulative Addressable) Addressable Mobile Cell Sites (Cumulative) Macro Cells [Small Cells] Addressable Businesses (Cumulative) Addressable Homes (Cumulative) 5 Cities 2,500 1,000 [3,000] 35, , Cities 5,000 2,000 [6,000] 70,000 1,000, Cities 7,500 3,000 [9,000] 105,000 1,500, Cities 10,000 4,000 [12,000] 140,000 2,000, Cities 12,500 5,000 [15,000] 175,000 2,500,000 Partners / Potential Partners Segment strategy Initial anchor or incremental Initial anchor or incremental Initial anchor or incremental Natural evolution of anchor or potential anchor Milestones achieved Solid anchor and strong incremental uptake in York National framework with EE/Three/MBNL 25% pre-registration in demand aggregation campaign in Peterborough Successful progress in York JV with Sky and TalkTalk Indicative: Assumes typical UK city with 100,000 homes, 7,000 businesses and 500 public sector sites 200 mobile cell sites per city, (small cells at 3:1 ratio of macro cells) All metro city builds following Well Planned City design philosophy allowing for PSN, Mobile, Business (FTTP) and Consumer (FTTH) capabilities CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 4

5 2014 KPIs Strong across all critical areas m New Gigabit City Wins 4 1 Route Kilometres of Metro fibre Service Providers on boarded 25 2 Connected Customer Sites Peterborough bus. registrations 25% n.m. Peterborough contracts 64 n.m. TCV added 11.1m 5.7m CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 5

6 E 2015F 2016F 2017F 2018F Exabytes per month Summary Financials In our first year we accomplished what we set out to do Compounding data growth Global IP traffic forecast to grow by 157% from 2013A to 2018F, CAGR of 21% m YoY Turnover % Gross profit % Gross margin 85% 81% 4 p.p. Adj. EBITDA (3.6) (3.0) 22% Network capex n.m. Source: CityFibre, Cisco VNI 2014 Cash & equivalents n.m. CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 6

7 2015 Progress On-Net Growth 6m in TCV added so far in Q1, compared with 11m for all of 2014 Peterborough 102 contracted businesses before build complete All footprints producing and first add-on multi-site in Hull New Footprint Edinburgh 150km planned with initial 200 sites and 50km with Commsworld 7 city construction projects ongoing including mobile (FTTT) & York (FTTH) Pipeline remains robust for new key anchor projects Opportunities 1 st Three/EE dark fibre sites delivered in mobile (FTTT) York JV tranche 1 successful tranche 2 build starting (FTTH) Debt provider discussions progressing well CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 7

8 City Updates CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 8

9 York 62 connections and 1.2m TCV added in 2014 Cumulative TCV/CAPEX 124% Annual run-rate revenues 745k Gross margin 93% UKs first Gigabit FTTH rollout with Sky and TalkTalk 8,000 7,000 6,000 TCV, capex and coverage TCV Capex 124% 5,000 4, % 3,000 2,000 94% 209% 247% 1,000 - Anchor Incr Incr Cumulative incremental Cumulative total CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 9

10 York FTTH Update Proving reference design, economics and scalability Tranche 1 trial deployment complete Green light for tranche 2 build of thousands of homes and businesses SPs increasing visibility and finishing back office integrations Brand and Retail propositions in 2015 CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 10

11 Peterborough Anchor vertical: Public sector Anchor partner: Serco Route length: 90km build (107 sites), completed 15% under budget Four service providers on board and selling Demand aggregation successful in 4 new business parks incremental approach to original plan Business conversion rate ahead of expectations with 64 business contracted through resellers at year end 102 businesses now under contract as at March 2015 Utilising Well Planned City design so capable of rapid FTTH rollout CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 11

12 Coventry Anchor vertical: Public sector Anchor partner: Council (via acquisition) Route length: 180km in total local access network 306 public sector sites on net Acquisition closed 3 June 2014 Attractive valuation, limited cash-out 11 th largest city in UK 10 service providers/resellers on board >400 businesses pre-registered today 17 new sites connected as at March 2015 CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 12

13 Kirklees Anchor vertical: Public sector Anchor partner: Easynet Route length: 72km of local access fibre and 176 anchor buildings to be connected 1st Public Services Network (PSN) framework win for dark fibre solution in UK Catalysed activity with all PSN providers Build commenced in February 2015 Great engagement with Council and Chamber National scale opportunity with Easynet 250 businesses pre-registered today CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 13

14 Aberdeen Anchor vertical: Business Anchor partner: Internet For Business (IFB) Route length: First phase 50km of a >100km potential build 150 customer circuit migration commitment from IFB First business demand-led anchor contract 100% Virgin-free footprint 250 additional businesses pre-registered today Sizeable public sector estate opportunity Construction began March 2015 Utilising Well Planned City design so rapid FTTH possible CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 14

15 Hull Anchor vertical: Mobile Anchor partner: EE, Three UK, MBNL Route length: Initial build 62km First step in national framework for Fibre-to-the-Tower (FTTT) Mobile potential for migration of 1,000s of sites across multiple cites First-ever dark fibre FTTT contract in the UK Phase one of build completed before 2014 YE delivering 3 MAS sites to operators First incremental multi-site contract (10) with service provider Significant interest from national service providers to enter Hull market on back of our infrastructure This is a completely new model for the industry, set to provide a much-needed change to the economics of capacity management. - Fotis Karonis, Chief Technology Officer, EE CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 15

16 FINANCIALS CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 16

17 Profit and Loss m YoY Turnover % Gross profit % Gross margin 85% 81% 4 p.p. Admin. costs (10.73) (5.71) 88% Operating loss (7.45) (4.20) 77% Net financial income 0.44 (2.11) n.m. Associates (0.04) - n.m. Pre-tax loss (7.06) (6.32) 12% Adj. EBITDA (3.64) (2.99) 22% Revenue marginally ahead of expectations, with strong growth from on-streaming of new cities High operating leverage of dark fibre model reflected in gross margin expansion Admin expenses include 0.9m one-off costs, 1.4m non-cash share-based payments charge, and 1.5m D&A Underlying labour costs of 5.2m (+32%) reflects ongoing investment in positioning the Group for growth Adjusted EBITDA in line with expectations CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 17

18 Balance Sheet and Cashflow Highlights Net property, plant and equipment up sharply reflecting Peterborough investment and Coventry acquisition Total cash and equivalents of 33.2m, of which 29m held in short-term deposits (within current assets ) Increase in long-term liabilities due to deferred revenue from new contracts Solid equity base following IPO and secondary placing Strong progress on securing substantial debt facility m YoY Net PPE % Cash n.m. Current assets n.m. Total assets % Equity (0.97) n.m. Long term liabilities % Current liabilities % Equity & liabilities % Operating cashflow (3.55) (2.14) 66% Network capex (4.70) (0.70) n.m. CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 18

19 Well-positioned in a rapidly evolving market as yet the UK is behind many other OECD countries as it does not view the internet as a fundamental part of the nation s infrastructure. Make or Break: The UK s Digital Future (House of Lords report) CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 19

20 Summary 2014 Achieved what we set out to achieve at IPO and secondary Well capitalized and now established fibre designer, builder, and operator Key projects across all verticals PSN, Mobile, Business and Consumer 2015 Momentum continuing in all core CityFibre activities >50% of Total 2014 Total Contract Values (TCV) achieved in 1 st quarter Pro-fibre investment environment with regulators and government Management continue to invest in key projects (FTTT, FTTH) and execution Scale of pipeline projects larger than previously expected Opportunities Data growth showing no signs of abatement Cities, service providers, mobile operators and business all demand diversification of supply chain and better value M&A opportunities still exist but with limited match to CityFibre model CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 20

21 Disclaimer Purpose The sole purpose ( the Purpose ) of this presentation (the Presentation ) is to provide information on CityFibre Infrastructure Holdings Plc ( CityFibre or the Company ) and its subsidiaries (together the Group ). This Presentation and the contents of it do not, and are not intended to, constitute an offer for sale, prospectus, invitation to subscribe for or purchase or otherwise acquire, shares or other securities in the Company. Verification of information The information contained in this Presentation is being supplied as a guide only and no reliance may be placed for any purpose whatsoever on the sufficiency, accuracy or completeness of the statements contained herein. No representation or warranty whatsoever is given by or on behalf of CityFibre or any directors, officers, employees or advisers or any other person and no responsibility or liability is accepted by any of them, in relation to the shares, business or prospects of the Company expressed or implied, or with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, projections or other information set out in this Presentation or any further information, written or oral or other, supplied in connection with it. Nothing contained within this Presentation is or should be relied upon as a promise or representation as to the future. Any pro-forma and estimated financial information contained herein is prepared expressly for use herein and is based on certain assumptions and the Directors analysis of information available at the time this Presentation was prepared. There is no representation, warranty or other assurance that any of the projections will be realised. The information contained herein and any further information relating to the Company supplied by CityFibre or its advisers is, and will be, supplied on the condition that neither CityFibre nor its advisers accepts any responsibility and/or liability for any loss or damage of whatsoever nature that may result or occur by reliance on such information and howsoever arising. The information contained in this Presentation has not been legally verified. Forward Looking Statement Certain statements made in this presentation are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company s current expectations, estimates and projections about its industry, its beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, seeks, estimates and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the Company s control are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. These factors include, amongst others, technology risks, including dependence on core technology, fluctuations in results, dependence on new product development, rapid technological and market change, reliance on sales by others, management of growth, dependence on key personnel; rapid expansion; financial risk management and future growth subject to risks. The Company cautions recipients of this presentation not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority. CityFibre Infrastructure Holdings PLC Financial Results 2014 Page 21