fy12 full year results presentation
TRANSCRIPT
Vocus Communications FY 2012 Full Year Results
Released 28 August 2012
Strong growth! FY12 revenue growth of 46.2%!FY12 underlying* EBITDA growth of 69.8%!Driven by sales of diversified product set as result of strategic acquisitions made since listing!
Fibre network expansion! Expanded fibre network by 298% in FY2012 (finished or under construction)!
Customer service award! Won ACOMMS customer service award!
Direct/Corporate sales growth!
Direct/Corporate sales accounting for 18% of FY12 sales, from standing start!
New Zealand acquisition! Acquired Maxnet Ltd., an Auckland based premium data centre, telecommunications and cloud services provider on 19 June 2012!
Internet traffic growth continues!
Internet traffic volume sold increased 80% year-on-year!
3!
Performance Highlights
* Excludes the effect of the other gains/(losses) associated with foreign exchange
4!
Consistent Strong Performance
0.2 !5.1 !
17.5 !
31.0 !
45.3 !
FY08A! FY09A! FY10A! FY11A! FY12A!
46% growth in FY12!!
!
Revenue ($m)! Underlying EBITDA1 ($m)!
(0.2)!1.1 !
6.9 !9.8 !
16.7 !
FY08A! FY09A! FY10A! FY11A! FY12A!
70% growth in FY12!!
!
Underlying EPS2,3 (cps)!
(0.3)!1.6 !
5.0 !
9.9 !
13.3 !
FY08A! FY09A! FY10A! FY11A! FY12A!
34% growth in FY12!!
!
Underlying NPAT1 ($m)!
(0.2)!0.8 !
2.6 !
5.5 !
8.4 !
FY08A! FY09A! FY10A! FY11A! FY12A!
52% growth in FY12!!
!
Source: Audited accounts Notes: 1) Underlying EBITDA and NPAT exclude FX gains and losses; 2) Underlying EPS is fully diluted EPS calculated on underlying NPAT 3) FY08 & FY09 are approximated using listing share base at FY10
• Strong continued organic customer growth in FY12 - 31% year on year!
• Good growth from Asian International carrier customers on Singapore route!
• Low churn rate!• Contracted and committed
revenues!• Numbers presented exclude
Maxnet customers!
Resulting Customer Growth
Customer Growth!
Source: Billing Data Notes: Customer numbers at 2012 Q4 Jun 12 excludes New Zealand customers from the Maxnet acquisition completed 19 June 2012
13 !28 !
45 ! 54 !67 !
81 !96 !103 !111 !112 !
133 !145 !
301 !309 !
337 !363 !
393 !
Jun
08 !
Sep
08 !
Dec
08 !
Mar
09 !
Jun
09 !
Sep
09 !
Dec
09 !
Mar
10 !
Jun
10 !
Sep
10 !
Dec
10 !
Mar
11 !
Jun
11 !
Sep
11 !
Dec
11 !
Mar
12 !
Jun
12 !
Perth data centre and dark fibre acquisition!
E3 data centre acquisition!
31%!Organic !growth !FY12!
5!
1.8 !
5.4 !
FY11A! FY12A!
201% growth in FY12!!
!
12% !of FY12 revenue!!
!
6!
Growth and Balancing of Services
Source: Audited accounts
Internet!• 22% revenue growth in FY12 !• 80% traffic growth!• 126% YoY customer growth!
Voice! • 9.5% revenue growth in FY12 !• Voice GM employed August 2012!
Data Centres!
• 199% revenue growth in FY12!• Vocus now operates 7 Facilities across 5 cities!• Sydney expansion SYD03a completed in June 2012!• Maxnet expands footprint to Auckland and Christchurch!
Fibre and Ethernet!
• 201% revenue growth in FY12!• Network expanded 298% to 235km1!
• 43 data centres connected; 166 on-net buildings!• Still <5% utilisation of fibre capacity!
16.8 !20.5 !
FY11A! FY12A!
22% growth in FY12!!
!
45% !of FY12 revenue!!
!
9.0 ! 9.8 !
FY11A! FY12A!
9.5% growth in FY12!!
!
22% !of FY12 revenue!!
!
3.1 !
9.4 !
FY11A! FY12A!
199% growth in FY12!!
!
21% !of FY12 revenue!!
!
Revenue by Service ($m)!
Notes: 1) Total underway and under construction August 2012; 176km completed and active at June 2012
FY13 Outlook
0!
5!
10!
15!
20!
25!
30!
2011! 2012! 2013! 2014! 2015! 2016! 2017! 2018! 2019! 2020!
0!
10!
20!
30!
Uni
ted
Stat
es!
Fran
ce!
Ger
man
y!
UK!
Italy!
Wes
tern
Eur
ope!
Asi
a!
Sout
h K
orea!
Japa
n!
Aus
tral
ia!
Internet Outlook: Strong Demand
8!
• Continued high data demand (expected to be > 40% CAGR) underpinning the Internet segment!
• Australian user demand lagging other developed nations (see graph)!
• Vocus continues to win market share, with 80% data volume growth last year!
• Vocus expects to expand further into Asia, building on the positive results of deploying a Singapore Point of Presence!
• Further IRU capacity will be required for Vocus in the short term!
Source: TeleGeography!
IP Traffic Demand (Tbits/sec)!
Source: USTelecoms.org, Ord Minnett, 7 December 2010!
IP Traffic per User (gigabytes per month)!
Australasian Market Cumulative Demand, Aus & NZ!
• Voice network combined with the Fibre and IP network provides a strong value proposition and cost structure going forward!
• New General Manager Voice recruited to provide renewed focus on this segment!
• 9.5% FY12 revenue growth without dedicated personnel!
• Developing products strategically positioned to capitalise on NBN voice opportunities !
Voice Outlook: New Focus
9!
Voice Revenue ($m)!
0 !
2 !
4 !
6 !
8 !
10 !
12 !
FY10A! FY11A! FY12A!
• Success in sales demonstrates compelling product positioning and latent demand!
• Vocus expects Capex required per new contracted $revenue to continue to decrease!
• Network utilisation remains <5% with large potential to extract more revenue from existing infrastructure !
• Further extension of foot print to 275 km expected by Dec 2012; expected Capex for year to be a minimum of $7m!
• Increased rate of on-net sales will lead to accelerated EBITDA margins!
Fibre Outlook: Continued Expansion
10!
Fibre Capex Growth Efficiency!
Notes: 1) Digital River capex efficiency is calculated using the purchase price of Digital River and contracted revenue arising from the acquisition!
Fibre capex $ for each $1 of contracted revenue!
3.29!
1.23!1.04!
Digital!River!
2012H1A! 2012H2A!
Data Centre Outlook: Expanding Footprint
11!
• Vocus now operates 7 facilities across 5 sites!
• 645m2 of data centre space added in FY12H2, from a base of 1826 m2!
• Options to lease an additional 1400m2 in Sydney with 3MW of power secured!
• Plans to expand Auckland data centre in next 6 months!
• Cloud computing positioned to be strong driver of demand for data centre space!
• Continued focus on data centre acquisitions in all commercial centres!
• Auckland data centre with zero carbon footprint well positioned for protection against carbon tax regulatory risks!
!
Location! Size! Utilisation!
Sydney (SYD1, SYD2, SYD3a)! 897m2! 81%!
Melbourne! 490m2! 100%!
Perth! 536m2! 93%!
Auckland! 420m2! 72%!
Christchurch! 128m2! 33%!
Data Centre Summary!
Data Centre Revenue ($m)!
0 !
2 !
4 !
6 !
8 !
10 !
FY10A! FY11A! FY12A!
• Sales team expanded to 16 from 3.5 FTEs at listing!
• Additional sales staff and structure expansion for FY13 underway!
• One of the keys to future growth is leveraging Vocus existing substantial infrastructure investments!
• Channel manager hired to manage sales activity outside the primary Corporate and Wholesale channels!
• Key focus on Corporate sales, which for Internet, fibre and data centre present high margin bundled opportunities!
• Direct sales transformation paying off with Corporate sales 18% of FY12 total!
• Incentives for bundled sales rolled out!
Sales Outlook: Corporate Sales Focus
Corporate!18%!
Wholesale!82%!
Corporate!4%!
Wholesale!96%!
12!
Sales by Channel (%)!
FY12!
FY11!
Percentage of sales!
13!
Strategy Realisation and Revenue Growth
• Listed on ASX!• Diversification
strategy set!• Grew core internet
and voice business!
• Entered data centre market!
• Sydney data centre capacity doubled!
• Internet capacity doubled!
• Capital raising!
• Entered fibre market !
• Fibre network expansion!
• NZ data centre market entered!
• Entered corporate market!
• Network expansion to Singapore!
• Internet capacity doubled!
• Capital raising!
• Leverage and expand fibre and data centre!
• Strategic acquisitions!
• Grow direct corporate market!
• Expand Asian footprint!
Strategy Realisation and Revenue Growth ($m)!
FY10! FY11! FY12! FY13 & beyond!
$17.5m! $31.0m! $45.3m!
Corporate Detail
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: [email protected]!!www.vocus.com.au!
Contacts
15!
This presentation contains forward looking statements that involve risks and uncertainties. These forward looking statements are not guarantees of Vocus' 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.!
Disclaimer
16!