Click to edit Master title
Click to edit Master title Vocus Communications" FY 2012 Half Year Results Released 16 February 2012 Vocus is uniquely positioned as the infrastructure provider to the Cloud revolution 2!
Click Who is to Vocus edit Master title Vocus is the Australian Telecommunications Carrier of the Year 2011. Vocus provides: Wholesale Internet access across our International IP Network Dark Fibre in Sydney, Melbourne & Brisbane Data Centre services in Vocus owned Data Centres in Sydney, Melbourne and Perth Wholesale Voice to ISPs, VoIP providers and other Telcos 3!
Click Vocus Capabilities" to edit Master title Connects Australia and New Zealand to the world Singapore Vocus Data Centres Vocus Fibre Vocus Internet and Voice Vocus Domes4c Ethernet Network San Jose Hawaii Fiji Brisbane Perth Adelaide Melbourne Canberra Sydney Auckland Map not to scale 4!
Click FY12H1 to edit Highlights" Master title Strong growth FY12H1 Revenue growth of 57% FY12H1 underlying* EBITDA growth of 63% Number of customers increased to 337 Expanded International Network Added international cable capacity to Singapore on SeaMeWe-3 cable and established Singapore PoP Strong demand for direct, low latency traffic to English speaking business hubs Acquired additional AU-US capacity in September 2011 to meet IP transit growth demand Expansion of the Dark Fibre network More than doubled since the acquisition of the Dark Fibre network in June 2011 Strong customer demand Increased on-net Data Centres Integration and growth of Acquisitions All acquisitions fully integrated, with nationwide operational systems rolled out Continued strong sales across new businesses * Excludes FX effects (predominantly unrealised on USD liability) 5!
Underlying Click to edit Financial Master Performance" title REVENUE! 13.9m 21.9m 57% increase from FY11H1 FY11H1 FY12H1 UNDERLYING* EBITDA! 4.6m 7.6m 63% increase from FY11H1 FY11H1 FY12H1 UNDERLYING* NPAT! 2.4m 4.0m 66% increase from FY11H1 FY11H1 FY12H1 UNDERLYING* EARNINGS PER SHARE! 4.6c 6.3c 41% increase from FY11H1 FY11H1 FY12H1 * Excludes FX effects (predominantly unrealised on USD liability) 6!
Click Historical Financial edit Master Performance" title Half Year Revenue Half Year Underlying * EBITDA Millions $25 $20 $15 $10 $5 $- FY10H1 FY10H2 FY11H1 FY11H2 FY12H1 Millions $8 $7 $6 $5 $4 $3 $2 $1 $- FY10H1 FY10H2 FY11H1 FY11H2 FY12H1 Half Year Underlying * NPAT Half Year Underlying * EPS Millions $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $- FY10H1 FY10H2 FY11H1 FY11H2 FY12H1 Cents 7 6 5 4 3 2 1 - Note 1 FY10H1 FY10H2 FY11H1 FY11H2 FY12H1 * Excludes FX effects (predominantly unrealised on USD liability) FY10H2 number normalised for shares on issue at listing 7!
Click Strong to Balance edit Master Sheet" title Strong net asset growth Assets consists of Total Assets Total Liabilities Net Assets 68.2 79.5 International Capacity Data Centre Plant Fibre Plant Network Hardware Long asset lives 5-30 years Life of International Capacity to 2025 25.8 3.6 32.0 9.9 36.4 14.9 33.8 37.6 Capacity repayments funded by cashflow Acquisitions and growth capex have been funded via equity and cashflow No bank debt (22.2) (22.2) (21.5) (34.4) (41.9) 2010H1 2010H2 2011H1 2011H2 2012H1 Source: Management accounts Note: 2010H2 has been normalised to exclude a non-recurring and offsetting asset and liability that arose on listing from the group reorganisation settled in June 2011. 8!
Click IRU and to FX edit Hedging Master at 1HFY12" title IRU Borrowing Profile including Hedged Portion at 31 December 2011 AUD $10m $20m $30m $40m $50m Total 14.4 30.5 45.0 Initial borrowing AUD Remaining AUD borrowing at 31 Dec 2011 Hedged Total original IRU borrowing $45m Liability reduced by $15m Repayments have been funded by cashflow Remaining $30m (47% hedged) Foreign exchange rate declined in the quarter to December 31 st resulting in a (predominantly unrealised ) loss of $700k for 1HFY12. This loss has been excluded from underlying results as presented. At today s AUD exchange rate the unrealised loss has largely reversed and FX results for the full year would be neutral At an exchange rate of 1.07 a 1c movement in the AUD rate results in ~$170k unrealised gain/loss, assuming no change to hedging 9!
Net Customer Growth" Click to edit Master title December 2011 quarter provided largest organic increase in customer numbers Perth Data Centre and Dark Fibre Acquisition New products have enabled Vocus to enter the Direct corporate market E3 Acquisition 1HFY12-54% of new customers purchased multiple products Low churn rate 10!
Click Cross Selling to edit Master title Number of Customers across Services Significant opportunity to cross sell services; 337 customers at end FY12H1 Significant cross selling opportunity The majority of customers only have one Vocus product and present a source of strong sales leads Number of Services 11!
Click Wholesale to edit Customers Master title 12!
Click Direct Customers edit Master title 13!
Click Vocus to Internet edit Master title 66% International Internet volume growth year to date Doubled capacity to US West Coast in September 2011 to meet increasing demand 35% of spare capacity Added Singapore to international network Promoted International Ethernet product with great success 14!
Click Vocus to Data edit Centres" Master title Existing Sydney facilities (S1&S2) now almost full 16 th Feb announcing expansion of Sydney Data Centre S3 which will increase Sydney DC space by an additional 50% Secured option for additional space (S4) which will increase existing capacity by 174% Evaluating options for acquiring space or building a new DC in Melbourne DCs providing strong leads for Fibre and Internet sales 15!
Click Vocus to Fibre" edit Master title Vocus owns the network Fibre Network covers 29 major Data Centres nationally and covers all major CBDs on the east coast Continuing to increasing size of network due to customer demand Better than expected customer demand resulting in $5.7m of new fibre growth capex committed in 1HFY12 (initial budget was $5m for the full year) Fibre has yet to contribute positively to Earnings, with contributions expected to increasingly flow through in 2HFY12 and beyond 16!
Regulatory changes Click to edit Master title On 15 Feb 2012 the Australian Competition and Consumer Commission (ACCC) announced the regulated price structure for Telstra Wholesale supply of ADSL Previously Telstra successfully bundled wholesale Internet by providing lower ADSL prices. With ADSL pricing regulated, this now levels the playing field Regulated pricing for DSL will significantly reduce the price of ADSL tails for small/medium ISPs (Vocus target customers) increasing their ability to compete in the market. 17!
Click Vocus to Relative edit Performance Master title FY11H1 FY12H1 Change Revenue $13.9m $21.9m 57% Underlying EBITDA $4.6m $7.6m 63% Underlying NPAT $2.4m $4.0m 66% Shares on Issue 52.8m 61.0m 15% Share Price* $1.93 $1.655-14% Market Cap $101.9m $100.9m -1% Shareholders 836 2519 201% * Share price taken 1 week after results announced 18!
Vocus Poised for Growth" Click to edit Master title Expansion of the Fibre network and Sydney DC Increasing sales of high margin on-net fibre Spare capacity: Fibre network ~3% utilised International Network 35% available Sydney DC expansion Growth in higher margin direct corporate sales Strong momentum in new customer growth Positive regulatory changes Fixed cost base business 19!
Click to edit Master title Internet Data Centre Dark Fibre 20!
Click Contacts" to edit Master title James Spenceley CEO Mark de Kock Executive Director, Strategy Rick Correll CFO Level 1 Vocus House 189 Miller Street North Sydney P: +61 2 8999 8999 F: +61 2 9959 4348 E: vocus @vocus.com.au www.vocus.com.au 21!
Click Disclaimer" to edit Master title This presentation contains forward looking statements that involve risks and uncertainties. These forward looking statements are not guarantees of Vocusʼ future performance and involve a number of risks and uncertainties that may cause actual results to differ materially from the results discussed in these statements. This presentation only contains information required for a preliminary evaluation of the company and in particular only discloses information by way of summary within the knowledge of the company and its directors. An investor should seek its own independent professional advice in relation to the technical, financial, taxation, legal and commercial matters relating to any investment in Vocus Communications Limited. Other than to the extent required by law (and only to that extent) the company and its officers, employees and professional advisors make no representation, guarantee or warranty (expressed or implied) as to, and assume no responsibility or liability for, the contents of this presentation. 22!