Vocus Communica ons Limited 2010 Full Year Results Presenta on
V3.0 Agenda
Vocus at a Glance Milestones Financial results Growth Strategy Business Outlook Q & A Background Info
2 Vocus at a Glance
Vocus is the fastest growing wholesale telecommunica ons provider in ANZ
Vocus extends the global internet backbone to Australia and New Zealand, to provide domes c and interna onal internet services to ANZ ISP’s and telecommunica on companies Vocus also provides substan al industrial grade wholesale Data and Voice services Vocus is the only independent wholesale Internet Transit operator le . (the others all have a retail presence: Telstra, Optus, AAPT, TPG, PacNet and Verizon) Vocus has rapidly moved from compe ng on price, to being a premium operator.
3 Milestones
Began trading April 2008
Signed 25th Customer Aug 2008, 50th - Jan 2009, 100th – Mar 2010
Launched NZ expansion October 2008
$948k Profit before tax FY 2009
Fastest growing technology company in Australia (Deloi es Rising Star award 2009)
BRW Fast Starters 2010 – 28th out of 100
ASX listed 8 July 2010, and secured the ex-CEO of OzEmail and Unwired, David Spence as Chairman.
Signed NZ$11.3 million mul -year contract to supply Vodafone New Zealand’s Interna onal Internet access in Aug 2010
Announced 501% increase in PBT in first annual report as listed company Aug 2010
4 Financial Results
5.73 M
5 Financial Results for Full Year FY10
Revenue 000's EBITDA 000's NPBT 000's
20,000 10000 6000 15,000 8000 6000 4000 10,000 4000 2000 5,000 2000 0 0 0 FY08 FY09 FY10 FY08 FY09 FY10 FY08 FY09 FY10 $17.5 Mil; 242% up $8.1 Mil; 641% up $5.7 Mil; 501% up
NPAT 000's 51,069,053 Shares on issue 4000 3000 Underlying opera onal measures: 2000 EPS 7.5 cents for FY10* 1000 0 P/E of 9.1 as at 25 Aug 2010 FY08 FY09 FY10 EV/EBITDA 6.5 as at 25 Aug 2010 $3.8 Mil; 356% up
*Note: assumes 100% issued shares for whole of FY10. Some commercial measures reported in the press based on the annual report are affected by the reverse acquisi on of First Opportunity Fund on 30 June 2010 6 Financial Results – Cont.
P/E ra os for comparable listed telco's 16.0 14.8
14.0 12.9 11.8 11.9 12.0
10.0 9.1
8.0
6.0
4.0
2.0
0.0 Vocus Bigair Grp Ltd Amcom iiNet Ltd M2 Telecommun Telecomm
Source – AFR 13 Sept 2010 and company informa on
7 Financial Results – Cont.
Cash Balance at 8 July 2010 was $6 million
No bank debt
51,069,053 Shares on issue, 686 shareholders at 25 August 2010
Top 10 Shareholders
Rank Name # of shares % held
1. SPENCELEY MANAGEMENT PTY LTD 8,339,407 16.33
Top Line Growth Revenue Diversity Growth in Asset Base Economies of Scale Customer Reten on Through Product Bundling Cross Selling to M&A Customer Base
Acquisi ons Organic New New Market Opera onal Growth Products Geographies Growth Efficiencies Only Independent Wholesaler Superior Customer Service – Leading Edge Technology Recruitment and Reten on of Best Staff Support and Development of ANZ Internet Industry
9 Growth Strategy
To drive growth through acquisi ons of complementary firms in adjacent market segments with a focus on physical infrastructure; to leverage our access to capital in an capital poor environment. To aggressively grow market share and to con nue the current level of customer reten on and upgrades through superior customer service, compe ve pricing and the provision of superior products. To sustain the above through the recruitment and reten on of the best exper se. Develop new products to leverage into our exis ng high quality customer base. To strongly grow profitability, through the above and ght control of our ultra low cost base. To drive growth through entry into new geographies. To have high touch customer interac on and to support the industry through sponsorship of industry conferences and research, growing the rela onship with the 150 medium to large ISP’s in the ANZ area. 10 Business Outlook
Vocus’ prospects for the next year are very a rac ve. Extrapola on of our FY10 year end run rate combined with our long term order book (average weighted contract dura on in excess of 18 Months), combined with the announced Vodafone New Zealand deal, point to another good year. Internet content demand from ANZ con nues to grow rapidly. Australia has experienced 55% CAGR over the last two years (source: ABS). Recent movements toward higher download caps support growth going forward. Vocus’ supply contract to the largest NZ mobile broadband provider has phenomenal growth in mobile broadband demand flowing through. There is however, uncertainty around the NBN – we view the NBN as largely neutral in terms of commercial impact on Vocus. With an NBN, more bandwidth will be consumed, which is beneficial to us. Without an NBN we con nue to stand out in terms of customer service and independence.
11 Key Customers
# Of customers per monthly revenue bracket 40 35 No customers 30 over 12% of 25 20 # Of customers revenue 15 10 5 0 <2k 2-5k 5-10k 10-20k 20-60k >60k 12 Vocus network – Points of Presence
Vocus has a total of 17 Points of Presence (PoP’s) Globally.
13 Vocus network
A typical Vocus “Point of Presence” houses Vocus communica ons equipment that provides connec vity for Telco’s and ISP’s. These PoP’s are interconnected via Vocus’ Interna onal network.
14 Awards
Vocus - Winner
Vocus – 28th, a er 2 years opera ons. out of allowed 4 years
15 Q & A
Q & A
16 Disclaimer
Disclaimer
This presenta on contains forward looking statements that involve risks and uncertain es. These forward looking statements are not guarantees of Vocus’ future performance and involve a number of risks and uncertain es that may cause actual results to differ materially from the results discussed in these statements.
This presenta on only contains informa on required for a preliminary evalua on of the company and in par cular only discloses informa on by way of summary within the knowledge of the company and its directors. An investor should seek its own independent professional advice in rela on to the technical, financial, taxa on, legal and commercial ma ers rela ng to any investment in Vocus Communica ons 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 representa on, guarantee or warranty (expressed or implied) as to, and assume no responsibility or liability for, the contents of this presenta on.
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