5g networks presentation – may 2018€¦ · superloop limited slc.asx aud 2.51 2.57 1.925 1.945...

5G Networks Presentation – May 2018

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DisclaimerThis presentation contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that 5G Networks Ltd anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information is identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references to assumptions. Such information may involve, but is not limited to, comments with respect to expectations, planned operations or future actions. These forward-looking statements are based on currently available information as of the date of this presentation but are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking information. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement.

A number of risks, uncertainties and other factors could cause actual results to differ materially from the results discussed in the forward-looking information, including, but not limited to, the following: risks associated with reliance on key personnel; financial health of 5G Networks Ltd and its related cash flows; general industry and market conditions and growth rates; legislative and regulatory developments; general economic conditions and levels of economic activity; global financial conditions; financing risks; degree of competition in the industry; risks associated with the development of projects; changes in employee relations; and control of costs and expenses.

Forward-looking information reflects 5G Networks Ltd ‘s current beliefs and is based on information currently available to 5G Networks Ltd and on assumptions it believes to be reasonable. The forward-looking information is made as of the date of this presentation and 5G Networks Ltd assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law. Prospective investors should not read forward-looking information as guarantees of future performance or results and should not place undue reliance on forward-looking information. Nothing in this presentation is, or should be relied upon as, a promise or representation as to the future.

© 5G Networks Investor Presentation April 2018

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Australian Market Overview and Opportunity


$42B

67/ 38

The overall telecoms services revenue reached over $42 billion in 2016.

Telstra’s market share is 67%. And EBITDA

margin is 38%.

+85B 92%*Total IT spending is

forecast to reach almost $85 billion in 2017.

By 2020, 92 percent of all workloads will be processed

in cloud data centers.

* Cisco Global Cloud Index: Forecast and Methodology, 2015–2020

SME 60%‘The SME market is the fastest growing and the most lucrative

market for value-added telecommunications’

– Paul Budde

60% of businesses with 200 or more employees use cloud services today

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5G Networks Positioning in the Market


$750k pa

500 seats

Fibre and Wireless Network

Third Party Providers

Customers NetworksPrivate Cloud

10 seats$20k/pa

Legacy Systems On Premise Hosting Virtual Machines

Public Cloud

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5G Networks - How do we Grow?

• Telstra is being forced to turn off traditional voice service• Market is changing significantly (NBN & Telstra)• Implementation of Sales Strategy – July 2017 (Wholesale, Acquisition/existing, Telstra Partner) • Cross sell/up-sell products to new clients - voice, network and cloud • Current growth of revenue from existing clients - 10% YTD.• Access to wholesale carrier network and holder of carrier license• Infrastructure Management • Multiple Cloud Environments at 60% utilisation up from 35% • Melbourne base station network expansion continuing • Fibre CBD Network roll-out expected to be completed by June 2018• Acquisition target profile defined and potential targets identified


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Experienced Team And Proven Business Model

• Fibre Roll-out in the UK $250m Pounds Per Annum Budget• 1997 - Uecomm $0 to $45m in 3 Years – created the market and new products• ASX:UEC Listed 2000 with Market Cap $930m• 2001 - Identified a need for Sub 10Mbps last mile services – DSL • ASX:APV Listed 2004 with Market Cap $10m• Same model being repeated today just with new technology• Cloud services and Networks are the critical components for productivity gains among Corporates• Cloud services market ready for consolidation


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Company Update – Half Year

• Half Year results – Revenue $1.1m, EBITDA $94k• Successful completion of the acquisition of Enspire in line with our Prospectus, with 2 months of financials included in the December 2017 quarter • Two base station sites have been secured and are already under construction.

Discussions are also well advanced to secure another four sites and complete installation by June 2018

• 5GN has completed installation of its second POI (Point of Interconnect) at Next DC • Key staff hires to assist in advancement of Company growth• Australian carrier license secured to permit supply of data and telephony services• Key Partnership Agreements secured with Telstra, Microsoft and HP• Two Channel Partners secured with a number pending• New customer acquisitions for core product and service offerings• Re-signed and upgraded services for existing customer base• Sales pipeline month on month growth continues in line with expectation


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Company Update – Third Quarter

• Successful acquisition of APTel for $6m cash (Second payment $3m due in September 2018)• Successful equity raising of $3.5m at $0.60 per share • Positive monthly cash flow from operations $150k to $200k• Doubling of cloud capacity and the establishment of third Point of Interconnect (POI) at Interactive Data Centre as part of the acquisition• APTel staff relocation to 5GN office completed and integration of ERP platform to be completed by end of May• Wireless and fibre network build progressing to plan• $1m of franking credits and $300k stock of VOIP handsets included in the acquisition • Appointment of a National Program Manager with experience rolling out a similar

wireless network in Sydney, managed a large NBN satellite roll-out and 10 years Telco experience


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5G Networks offers a point to multi-point (PtMP) service

Key Features• 10km coverage from each base station• Speeds up to 350mbps symmetrical• 3 products • direct network access • load balancing • redundancy• Channel Partner model• Layer 2 allowing for flexible applications• 24 hour installation

Wireless Network Technology


DATa CENTre DATa CENTre

Customer 1

Customer 4

BASE STATION

Customer 3

BASE STATION

Customer 2

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Business Growth Comparisons


Base Stations

StaffChanel

Customer Growth

Total To

Date980+ 4 2 33

Comparison between November listing, Half Year, Acquisition APTel, and 3rd Quarter

Direct Customer

Growth

150+

980+ 980+

150 + (Enspire Aus

pty Ltd)

Nov 1 /2 YR APTel 3rd 1 /4

4

3

2


22 2


23

34 33

26


10

Total To

Date

Business Growth Comparisons


Cash Balance($Million)

Capital Raised ($Million)

Nov APTel

4.033.50


3.603.603.603.93

3.60m 7.53m


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Share Price Performance


April0.20 0.20

0.50 0.50

0.30 0.30

0.60 0.60

0.40 0.40

0.70 0.70

0.80 0.80

November FebruaryJanuary

Low 0.25

High 0.93

Name Code Cur Open High Low Close Change % Total Volume

Daily Average Volume

Total ValueDaily

Average Value

Turnover %

Number of trades

5G Networks 5GN.ASX AUD 0.26 0.93 0.245 0.615 136.54 30,498K 324K 16,833K 179K 144.06 6404

Bulletproof Group Limited BPF.ASX AUD 0.067 0.15 0.067 0.135 101.49 54,337K 578K 7,084K 75,356.78 33.45 1050

Spirit Telecom Limited ST1.ASX AUD 0.155 0.28 0.145 0.255 64.52 57,291K 609K 11,512K 122K 25.46 1789

Magaport Limited MP1.ASX AUD 2.42 4.35 2.39 3.77 55.79 21,634K 230K 77,011K 819K 24.34 18052

Over The Wire Holdings Limited OTW.ASX AUD 2.50 3.18 2.50 3.06 22.40 6,044K 64303 16,586K 176K 13.76 1285

Nextdg Limited NXT.ASX AUD 5.45 7.35 5.26 6.51 19.45 157M 1,670K 970M 10,316K 54.93 389K

TPG Telecom Limited TPM.ASX AUD 5.80 6.88 5.415 5.52 (4.83) 157M 1,667K 957M 10,181K 16.92 359K

Swift Networks Group Limited SW1.ASX AUD 0.43 0.535 0.35 0.40 (6.98) 19,977K 213K 9,088K 96,682.73 26.64 3562

Inabox Group Limited IAB.ASX AUD 0.42 0.59 0.36 0.36 (14.29) 2,205K 23460 1,024K 10,890.16 9.27 441

Superloop Limited SLC.ASX AUD 2.51 2.57 1.925 1.945 (22.51) 43,063K 458K 95,735K 1,018K 18.85 52267

Vocus Group Limited VOC.ASX AUD 3.03 3.33 2.15 2.28 (24.75) 260M 2,770K 703M 7,481K 41.84 245K

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Financial Growth Comparisons


Nov Nov1/2 YR 1/2 YR3rd 1 /4 3rd 1 /4APTel APTelTotal Total

6.300

12.267

5.967

1.100

1,500Expected Syn-

ergies $500K pa

1,956

456 100

Pro Forma Historical FY 17Results Actual YTD

Revenue (Millions) EBITDA (‘000s)


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Pro-Forma Financials

Enspire APTel 5GN Group

Pro forma historical P&L 30 Jun 15 30 Jun 16 30 Jun 17 30 Jun17 Total

Revenue 6,107,125 6,248,077 5,967,761 6,300,000 11,654,359

Expenses -5,089,854 -5,227,132 -5,487,491 -4,800,000 -9,698,581

Profit before income tax expenses 1,017,271 1,020,945 480,270 1,500,00 1,980,270


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Pro-Forma Financials

Pro forma balance sheet Nov ‘17 Dec ‘17UnauditedMarch ‘18

Current Assets 3,875,309 3,980,179 5,166,503

Non-Current Assets 1,748,959 2,364,471 7,874,638

Total Assets 5,624,268 6,344,650 13,041,141

Current Liabilities 657,738 821,570 4,182,559

Non-Current Liabilities 325,422 250,843 281,926

Total Liabilities 983,160 1,072,414 4,464,485

Net Assets 4,641,108 5,272,236 8,576,656

Total Equity 4,641,108 5,272,236 8,576,656


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Comparative Valuation


Code Company Name Mkt Cap Cash

(@ Dec – 17) Total Debt Share Price As At 010518 PE NPBT Revenue

MP1 Megaport 435 70.50¹ 9.30 3.600 NA (29.50) 20

SLC Super Loop 448 6.40 60.60 1.920 448 1.00 110

NXT Next DC 1885 218.00 303.40 7.230 147 12.80 123

OTW Over the Wire 135 4.70 14.10 3.080 23 6.00 48

ST1 Spirit Telecom 61 3.50 7.80 0.255 34 1.80 16

5GN 5G Networks 30 3.60 4.45 0.600 13 2.40 ² 12

SW1 Swift Networks 28 4.10 19.10 0.375 NA (2.40) 20

IAB In A Box 10 0.70 28.50 0.410 3 3.00 95

CNW Cirrus Net 12 3.80 22.50 0.015 NA (1.70) 60

¹ Includes $50m cap raise in March 18² FY19 Assume public historicals

Full year based on half year results x 2

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Board Members

Independent Chairman – Albert Cheok (ex Reserve Bank Australia Manager)• Mr Albert Cheok has more than 35 years of high-level experience in the banking, financial and corporate sectors in the Asia Pacific region• Mr Cheok was named ‘the top REIT fund manager in Asia for 2016’ by Singaporean Fortune Times magazine• Mr Cheok is a Fellow of the Certified Public Accountants Australia• Mr Cheok was the Chairman of Bangkok Bank Berhad in Malaysia from September 1995 to November 2005

Independent Director - Joe Gangi (ex ASIA PAC Manager AMEC Ltd)• Joseph Gangi has a Bachelor of Chemical Engineering degree from RMIT• He has a corporate management background having been responsible for several business units across the Asia Pacific region in the engineering consulting sector• Joseph has worked extensively across the Asia Pacific region and has been responsible for the successful delivery of several highly technical industrial projects


Managing Director– Joseph Demase• 25 years business experience, with more than 15 years spent in the telco sector both in Australia, and in the UK• Completed 2 ASX listings in the Telecommunications sector previously• Ability to identify market opportunities within the sector previously• Bachelor of Business (Accounting) degree from Deakin University.

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Board Members & Management Team


Sales Director – Garry White• Over 20 years in the ICT and Telecommunications experience• National Sales Director with one of the 4 major Telco’s in Australia• Instrumental for the growth at Uecomm from $0 to $45m in 4 years• Ex TPG Sales Director – Enterprise and Government

Chief Financial Officer – Geoffrey Nicholas• 15 years Finance and IT experience• Ex CEO Enspire and current shareholder• CPA, BBus (Acct)

National Program Manager – Chris Demase• General Manager of Fibre Deployment Skybridge Group Pty Ltd, responsible for the delivery of NBN fibre construction services to more than 15,000 end user premises and management of over 1100 field contractors.• Lead Project Manager for the roll-out of Clever Communications (ASX:CVA) Sydney Wireless network.• Master’s in Business Administration (MBA) and Prince2 Project Management

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Thank you

5g networks presentation – may 2018€¦ · superloop limited slc.asx aud 2.51 2.57 1.925 1.945...

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