Netlink Nbn Trust · SGX:CJLU
Netlink Nbn Trust — Investor Presentation (December 2018)
18 slides from Netlink Nbn Trust's investor presentation, December 2018
Slide 1: Investor Presentation
Investor Presentation December 2018 The joint issue managers of the initial public offering and listing of NetLink NBN Trust were DBS Bank Ltd., Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch. The joint underwriters of the initial public offering and listing of NetLink NBN Trust
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in NetLink NBN Trust (the “Trust” and the units in the Trust, the “Units”
Slide 3: Overview
Overview Key Highlights Financial Snapshot • Sole appointed “Network Company” H1 Variance vs $m FY19 Projection(1) for Singapore's Next Gen NBN • Resilient business model generates Revenue 176.7 4.8% long-term, predictable cash flows EBITDA 122.2 3.8% through: • Growing demand for fibre EBITDA Margi
Slide 4: Fibre is a critical infrastructure enabling Singapore's Next Gen NBN
Fibre is a critical infrastructure enabling Singapore’s Next Gen NBN Fibre is the medium of #1 choice for delivering broadband services Fibre capacity is scalable About 9 out of 10 FIBRE IS homes in Singapore ‘FUTURE PROOF’ has a fibre termination point installed Fibre is used to Fibre broadband sup
Slide 5: Our network
Our network 1,241,018 45,514 1,280 End-Users End-Users Connections * Figures are as at 30 Sep 2018 ~90% share of ~35% share of residential market non-residential market 5
Slide 6: A resilient business model
A resilient business model RAB Revenue Non-RAB Revenue NLT Residential Non- NBAP and Ducts and Installation Diversion Co-Location Central Connections Residential Segment Manholes Related Revenue and Other Office Connections Fibre Service Revenue Revenue Revenue Connections Revenue % of H1 FY19 Reven
Slide 7: Fibre connections
Fibre connections Residential Non-Residential Non-Building Address Points ’000 ’000 1,300 50 1,592 1,278.3 47.3 1,600 45.5 2.0% 1,241.0 43.9 44.8 1.6% 1,400 1,217.1 38.5 1,280 1,200 1,192.5 40 13.4% 1,200 1,129 31.5 1,094.8 30 1,000 1,100 835 IPO Projection IPO Projection IPO Projection 800 1,000 20
Slide 8: Q2 Profit & loss statement
Q2 Profit & loss statement S$’000 Q2 FY19 Projection(1) Variance (%) Revenue was higher than projection mainly due to Revenue 90,594 84,876 6.7 higher diversion revenue and ducts & manhole service revenue, this was partially EBITDA 61,239 59,427 3.0 offset by lower than projected installation-relate
Slide 9: H1 Profit & loss statement
H1 Profit & loss statement S$’000 H1 FY19 Projection(1) Variance (%) Revenue was higher than projection mainly due to Revenue 176,706 168,671 4.8 higher diversion revenue and ducts & manhole service revenue, this was partially EBITDA 122,231 117,766 3.8 offset by lower than projected installation-re
Slide 10: Balance sheet as at 30 Sep 2018
Balance sheet as at 30 Sep 2018 Cash Balance S$153m Gross Debt S$636m Net Assets S$3,088m Gross Debt/EBITDA 2.6x EBITDA Interest Cover 14.1x Net Assets per unit(1) 79.2 ( (1) Net assets per unit represents equity divided by total number of units (3,896,971,100) 10
Slide 11: Growth opportunities
Growth opportunities In the next Residential homes not on Increasing Non-residential NBAP demand 5 years fibre broadband & new end-users from Smart household formations Nation, IoT and mobile Residential and Non-residential Smart 5G Mobile Beyond the IoT Nation technology next 5 years 11
Slide 12: Attractive distribution yield with low risk
Attractive distribution yield with low risk NetLink NBN’s Distribution Yield vs Other Investments 1 7% 6.3% 2 6% 5.5% Distribution Yield (%) 5% 4.3% 4% 3% 2.5% 2.5% 2.3% 2% 1% 0.4% 0% NetLink Yield 10-YR Singapore 5-YR Singapore Govt Bank 12-month Fixed CPF Ordinary A/C STI Yield FTSE ST REIT Yield
Slide 13: Well-positioned to deliver long-term value and growth
Well-positioned to deliver long-term value and growth 1 Critical infrastructure enabling Singapore’s Next Gen NBN Resilient business model with transparent, predictable and 2 regulated revenue stream Sole nationwide provider of residential fibre network in 3 Singapore Well-positioned to benefit from
Slide 14: Thank You
Thank You NetLinkNBN
Slide 15: Supplemental Business Information
Supplemental Business Information 15
Slide 16: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Pricing of NLT’s principal services are regulated by IMDA • IMDA shall hold a review of pricing terms every five years following the last price review, or at any such time as IMDA may consider appropriate (which may include a mid-term review in the third year
Slide 17: NetLink Trust's pricing for its services
NetLink Trust’s pricing for its services Framework for RAB Based Pricing Model Methodology for RAB based pricing model 1 1 • Base year of the RAB is 2012 RAB WACC – Assets purchased up to 2012 are valued at 2012 Cost Base prices for RAB – Assets purchased after 2012 are valued at actual cost 2 2 • N
Slide 18: Understanding the ICO pricing framework
Understanding the ICO pricing framework Illustrative Worked Example How Does EAC Work for 1 Year’s Outflow on Capex? Assuming Opening RAB of S$1Bn, WACC of 7.0% and Asset Useful Life of 10 Years EAC (S$ MM) RAB (S$MM) 300 1,000 750 200 142 142 142 142 142 142 142 142 142 142 500 34 26 18 9 65 60 54
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