NEXTDC Limited ABN 35 143 582 521 Appendix 4E (ASX Listing Rule 4.3A) Preliminary Final Report Results for announcement to the market For the year ended 30 June 2015 (Previous corresponding period: to 30 June 2014) SUMMARY OF FINANCIAL INFORMATION 2015 2014 Change Change Note $’000 $’000 $’000 % Revenue from ordinary activities 1 60,880 48,295 12,585 26.1% Loss from ordinary activities after income tax for 1 (10,254) (22,906) 12,652 nmf the period attributable to members Loss after income tax attributable to members (10,254) (22,906) 12,652 nmf1 EXPLANATION OF LOSS FROM ORDINARY ACTIVITIES AFTER TAX Note 1 The following information has been provided in order to understand the Group’s revenue from ordinary activities. 2015 2014 $’000 $’000 Data centre services revenue 58,657 30,360 Data centre development revenue - 15,470 Other revenue 2,223 2,465 Total revenue from ordinary activities 60,880 48,295 Dividends No dividend has been proposed or declared in respect of the year ended 30 June 2015. NTA Backing 2015 2014 Basic net tangible asset backing per ordinary share $1.09 $1.15 Diluted net tangible asset backing per ordinary share $1.10 $1.15 The calculation of Basic Net Tangible Assets excludes loan funded shares as they are considered as Treasury Shares. The calculation of Diluted Net Tangible Assets includes loan funded shares where the price of the shares as at 30 June exceeded the issue price. The number of NEXTDC shares (including loan funded shares) on issue at 30 June 2015 was 197,081,230 (2014: 196,831,230). Refer to Note 20 of the Financial Report for details of shares on issue. Refer to the attached audited Financial Report for additional disclosures. 1 nmf – Change in percentage is not meaningful NEXTDC Annual Report 2015 1 JULY 2014 TO 30 JUNE 2015 NEXTDC Limited ABN 35 143 582 521 1 JULY 2014 TO 30 JUNE 2015 NEXTDC Limited ABN 35 143 582 521 Annual Report FOR THE YEAR 1 JULY 2014 TO 30 JUNE 2015 2 5 14 22 44 45 59 106 108 110 111 1 NEXTDC LIMITED ANNUAL REPORT 30 JUNE 2015 Letter from the Chairman and CEO Douglas Flynn Craig Scroggie Chairman CEO We welcome our shareholders to this year’s Annual Report, This included several major customer contracts, such as which marks the end of the 2014-2015 financial year (“FY15”) the Major International Customer for initial capacity of and another period of significant growth and strategic over 1MW at S1 announced in December 2014; a Leading achievements. Last year we wrote about how NEXTDC Corporation for 4MW across M1 and S1 announced in June realised a unique market position as Australia’s only truly 2015; and the $35 million Federal Government contract independent national data centre provider, as we evolve to announced after the end of FY15. take advantage of the digital revolution that is solidifying the The high density requirements associated with these central role data centres play in today’s economy. customer wins provides NEXTDC with the opportunity Today NEXTDC has become a technology pioneer, to utilise the Project Plus engineering program, which is connecting Australia by facilitating the next generation of expanding the Company’s overall national capacity from IT services, hosting the infrastructure of the nation’s leading 35MW to 42MW without the requirement for additional technology providers and supporting the local deployment land, building or fit-out of additional data halls. of the world’s largest cloud platforms. While many key strategic objectives have been met during the 2014-2015 financial year, we recognise the importance Australia’s fastest growing of creating value for our shareholders and we therefore technology company continue to adopt a disciplined approach to capital allocation. NEXTDC is enabling business transformation though After the end of FY15, NEXTDC was successful in upsizing innovative data centre outsourcing solutions, connectivity its undrawn senior secured debt facility with the Company’s services and infrastructure management software. relationship bank, National Australia Bank (“NAB”) from $20 million to $50 million. FY15 saw NEXTDC achieve significant growth across key operational and financial metrics. The Company reported The Board underwent further renewal in the past year. its first positive EBITDA1, recording total EBITDA of $8.0 Non-Executive Director Ted Pretty resigned from the million, up $24.1 million on FY14 underlying EBITDA loss NEXTDC Board in March 2015. Mr Pretty made a significant of $16.1 million2. NEXTDC also reported its first period contribution to the successful development of NEXTDC of positive operating cash flow, recording a positive $6.9 since joining the Board in 2011, shortly following the million figure for the year, up $16.8 million on FY14. Company’s IPO. Ted helped to transform NEXTDC from an entrepreneurial start-up to a nationwide business delivering During FY15 NEXTDC achieved new sales of 9.8MW positive operating cash flows. (on a pro forma basis, including the Federal Government contract announced on 10 August 2015), increasing its In June 2015 we were very pleased to welcome contracted utilisation by 83% from 11.9MW at the end of Ms Elizabeth Gaines to the NEXTDC Board as a FY14 to 21.7MW. Non-Executive Director. Elizabeth has joined NEXTDC to assist the Company with its next phase of growth and strategic development. 1. EBITDA is a non-statutory financial metric representing earnings before interest, tax, depreciation and amortisation. Non-statutory financial metrics have not been audited. 2. FY14 underlying EBITDA excludes $4.9 million building development profit, $2.2 million in APDC distributions and gain on sale of securities, as well as $1.3 million in fund raising advisory fees. 2 NEXTDC is enabling business transformation though innovative data centre outsourcing solutions, connectivity services and infrastructure management software. The Company’s management team also underwent some In this publication last year we announced the development renewal during the course of FY15. In November 2014, of a new interconnection product and the next generation of Mr Oskar Tomaszewski was appointed as NEXTDC’s Chief Data Centre Infrastructure Management (DCIM) platforms, Financial Officer, with responsibilities for the Finance, and we’re pleased to say this commitment has been Human Resources and Legal services functions. The fulfilled. NEXTDC has created two new lines of business: Company also appointed Mr David Dzienciol as Group AXON Systems, which offers AXONVX, delivering secure, Executive – Customer & Technology during the course of elastic connections via a dynamic, high-speed switching FY15, as well as Mr Michael Helmer as Company Secretary fabric; and ONEDC Software, developer of the ONEDC and General Counsel. cloud-platform for DCIM. We believe the Company’s renewed Board and executive Significantly, the launch of the AXONVX switching fabric staff have the strength, independence and breadth of facilitates the national roll-out of private, high-speed experience required to build long-term shareholder value. connections to Microsoft Azure, and soon Office 365, via Microsoft Azure ExpressRoute at NEXTDC data centres, Enabling the digital revolution and is an early example of how AXONVX represents the future of Connectivity-as-a-Service. Our work has now shifted towards systematically growing and building value in our ecosystem, because it’s where our NEXTDC is Where the cloud lives® customers can make new business connections, expand their solution offerings and extend their reach. In today’s We also signed a number of other significant customer digital world, the ability to interact and do business with contracts in FY15, including with well-known national and new communities within one national, neutral ecosystem international enterprises such as Microsoft for connections is the future of commerce. to their Azure public cloud platform via ExpressRoute; PCCW Global and its worldwide MPLS network; CenturyLink In September 2014 NEXTDC released the Quarter Rack – the third largest telecommunications company in the product to support the growing needs of the small and United States; and global network provider CloudFlare. medium business markets, and in November launched These partnerships continue the trend of the world’s top IT FastStart colocation bundles to offer flexible, pay-by- providers utilising NEXTDC’s national data centre network the-month consumption options for the first time in the to provide services through our ecosystem of carriers, cloud Australian market. and IT service providers, and demonstrates the value of our In the age of cloud computing, businesses of all sizes are ‘Where the cloud lives’ philosophy. demanding flexibility from their data centre service, and Data sovereignty is an important consideration in this highly to remain Australia’s most innovative data centre provider, globalised world, and these companies’ commitment to NEXTDC is improving and expanding our industry-leading the Australian market addresses the concerns of many products and services with customisable solutions. This Australian businesses on data sovereignty. By ensuring their flexibility allows our customers and partners to make a cloud platform is hosted locally, and accessed via a private, seamless transition to cloud and colocation, and scale their secure connection, they’re comforted by the knowledge infrastructure investment as their business needs evolve. that their information is protected by Australian laws and not subject to foreign jurisdictions. 3 NEXTDC LIMITED ANNUAL REPORT 30 JUNE 2015 Dynamic partner ecosystem Our people are our success NEXTDC’s go-to-market model is centred on being Creating great companies is a lot of hard work and we ‘Partner Preferred’. Our carrier and vendor neutrality has are fortunate to have a passionate and dedicated team of attracted a broad array of local and international partners people who come to work every day to build on our shared to our business – carriers, cloud providers, outsourcers, achievements.