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NEXTDC INVESTOR DAY

9 May 2017 NEXTDC LIMITED ACN 143 582 521

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More data has been created

in the past 2 years than in the

entire previous history of the

human race…

Opportunity Ecosystems Customer

Experience

GrowthAutonomous

Data Centres

Chief Executive Officer

Group Executive

Sales and Marketing

Chief Customer Officer

EVP of Technology

Chief Operating Officer Chief Financial Officer

Simon Cooper

Craig Scroggie

Oskar Tomaszewski

Adam ScullyDavid Dzienciol

Managing Director

Australia & New Zealand

Frost & Sullivan

Mark Dougan

LEADING

NATIONAL

NETWORK

OF NEUTRAL

DATA CENTRES

0

10

20

30

40

50

60

2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17

Revenue ($m)

97% CAGR

-15

-10

-5

0

5

10

15

20

25

2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17

EBITDA ($m)

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GENERATION 2

KICKS OFF HALF A

BILLION IN NEW

DATA CENTRE

INFRASTRUCTURE

INVESTMENT

Gen 2 (MW) Gen 1 (MW)

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The world’s most valuable resource is no longer oil, but data

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The 4th Industrial RevolutionTHE 4TH INDUSTRIAL REVOLUTION

1st 2nd 3rd 4th

Mechanisation,

water power,

steam power

Mass

production,

assembly line,

electricity

Computer

and

automation

Cyber

physical

systems

“The past 250 years has seen a few select inventions, namely the steam engine,

electrification and the microprocessor, spur the past three industrial revolutions and

‘catalysed human progress’. The fourth will be driven by data – ‘the electricity of our

age’, as well as the data centers that will make this massive use of data possible.”

Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum

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Rise in global computing capacity

0

5

10

15

20

25

30

35

40

45

19

80

19

85

19

90

19

95

20

00

20

05

20

10

20

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Annual additions to global business and consumer computing power in exaflops

An exaflop is one quintillion (10 to the 18th power) floating point operations per second

Computational costs

Bandwidth costs

Memory costs

Global connectivity

Internet users

Connected devices

Deceptive growth

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Moore’s law is a law of economics

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2007 2017

KURZWEIL’S LAW

OF ACCELERATING

RETURNS

“Technology goes beyond mere tool making; it is a process of

creating ever more powerful technology using the tools from the

previous round of innovation.” – Ray Kurzweil

the pace of technological progress … speeds up exponentially

over time because there is a common force driving it forward.

2023

2050

20

Kotler’s 6 D’s of exponential technology

Digitalisation

DemocratisationDemonetisationDematerialisation

DisruptionDeception

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In the next decade,

40 percent of today's

Fortune 500 companies

will no longer exist.Olin School of Business @ Washington University

“

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“ If you aren’t genuinely pained by

the risk involved in your strategic

choices, it’s not much of a strategy. Reed Hastings (Netflix co-founder and CEO, Facebook board member)

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Unexpected convergent consequences

virtual realitysynthetic biologynetworks

renewable energysensors 3D printing

material sciencesaugmented realityautonomous

nanotechhealthartificial intelligence

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NETWORKS

20152010 20202.9b >6b1.2b

Entrepreneurs coming online today now have access to bandwidth, tens of billions of capital in crowdfunding, the world's knowledge

on Google, cloud computing, 3D printing, access to sensors, networks, payment platforms and even synthetic biology

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MOBILE IS GROWING FASTER THAN ANY TECHNOLOGY EVERBEFORE

1960 1970 1980 1990 2010 2020 2030

Mainframe

1MM+

Microcomputer

10MM+

PC

100MM+

DesktopInternet

1B+

Mobile Internet(Post PC)

10B+

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HYPERCONNECTIVITY

3

80Bconsumer

photos

taken on film

1999 2014

800Bphotos

shared on

social media

WhatsApp2016

40Bvideos

viewed on

YouTube

216Bemails

per day

30Bmessages

a day

(with just 40

engineers)

2016

MARGINAL INCREMENTAL COST IS ZERO

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SENSORS

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ARTIFICIAL INTELLIGENCE

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SIRI

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