For personal use only

Transcription

1 Results for the six months ended 31 December 2010! 22 February 2011!

2 Highlights! Strong financial performance for half year ended 31 December 2010! 92% revenue growth! Data Centre Acquisition November 2010! Earnings accretive! Commencement of new IRU! Due to data demand, second IRU acquired! Vodafone NZ contract win! NZ$11.3 million multi-year contract! Two new products launched! Inter-capital Data facilities! Pacific IX Peering facility! Winner! Second! 2

3 Financial Performance! REPORTED REVENUE! 92%! 92% increase from Dec 2009! Mainly organic growth only 1.5 months of data centre revenue contribution! REPORTED NPAT! 54%! 54% increase from Dec 2009! Includes acquisition transaction costs! OPERATING CASHFLOWS! 324%! 324% increase from Dec 2009! Before investing and financing activities! MARKET CAPITALISATION! 200% increase since listing! 200%! 3

4 Vocus at a Glance! Vocus Communications Limited! IP Transit! Data Services! Voice Services! Data Centres! Wholesale IP Transit, Voice and Data Services to Australian and New Zealand ISPs and Telecommunication Companies.! Data Centres located in Sydney and Melbourne. Cable Operator! Carrier/Telco! Wholesale ISP/aggregator! Retail ISP! Customer! 4

5 Shareholders! Top 10 Shareholders at 18 February 2011! Rank! Name! Units Held! % of Units! 1. IWPE NOMINEES PTY LIMITED <IWPE FUND 3 A/C> 6,666, SPENCELEY MANAGEMENT PTY LTD <SPENCELEY FAMILY A/C> 6,179, TAMEION PTY LTD <TAMEION SUPER FUND A/C> 5,727, CITICORP NOMINEES PTY LIMITED 2,513, TAMEION PTY LTD <MCCONNELL II FAMILY A/C> 2,455, FIRST CAPITAL PARTNERS PTY LIMITED 2,000, INVESTEC BANK (AUSTRALIA) LIMITED 2,000, SPENCELEY MANAGEMENT PTY LTD <SPENCELEY FAMILY A/C> 1,349, IWPE NOMINEES PTY LIMITED <IWPE FUND 3A A/C> 1,333, LAYER 10 PTY LTD <WILTONGATE A/C> 1,322, NO. OF SHAREHOLDERS! Shares on issue at 31 December 2010:! Options on issue at 31 December 2010:! 52,845,525! 2,034,999! Shareholders at listing:! 685! Shareholders at 31 December 2010:! 836! 5

6 Growth Strategy! VOCUS GROWTH STRATEGY CONTINUES THROUGH 2011 WITH A FOCUS ON FUTHER ACQUISITIONS! Revenue Growth! Revenue Diversity! Growth in Asset Base! Economies of Scale! Customer Retention Through Product Bundling! Cross Selling to M&A Customer Base! Acquisitions! Organic! Growth! New! Products! New! Geographies! Market! Growth! Operational! Efficiencies! Only Independent Wholesaler! Superior Customer Service Leading Edge Technology! Recruitment and Retention of Best Staff! Support and Development of ANZ Internet Industry! 6

7 Strategy Snapshot! STRATEGY! ACTIONS TAKEN! RESULTS! Acquisitions! Nov 2010 Data Centres acquired in Sydney and Melbourne! Revenue Growth! Revenue Diversity! Growth in Asset Base! Cross Selling! Organic Growth! Dec 2010 Customer base grown to 136 customers! Jan 2011 New IRU agreement commenced! Revenue Growth! Economies of Scale! New Products! Inter-capital Ethernet! Pacific IX! Revenue Growth! Revenue Diversity! Customer Retention through Product Bundling! Market Growth! Data demand, especially mobile data! Data Centre demand! NBN! Revenue Growth! New Products! 7

8 For personal use only Acquisitions! Data Centres Acquisition key component in our growth strategy! Key Acquisition Highlights! Purchased November 2010 for consideration of $5.9m! Replacement Cost of Equipment Purchased $4.9m! Earnings and cash flow accretive* since acquisition! Complimentary to existing business; diversifies revenues and greater share of customer spend! Data Centre! Size! Melbourne! 490m2! Sydney - Level 1! 400m2! Sydney - Level 2! 400m2! * Excluding transaction costs relating to acquisition.! 8

9 New IRU Commencement! Increased Demand - Additional IRU Description! IRU #1! IRU #2! Commencement Date! 1 July 2009! 1 January 2011! Estimated Economic Life Remaining at 31 Dec 2010! 15 Years! 15 Years! Vocus has indefeasible rights to use of capacity on undersea cables referred to as IRU! IRUʼs provide Vocus with a secure entitlement to use and on-sell the acquired capacity for the period of the IRU, ending November 2025 (formerly November 2020), being the estimated useful life of the cable! 9

10 New Products! Vocus continues to launch New Products during FY2011 to improve yield off existing infrastructure with little incremental investment including:! Inter-capital data services! o High capacity tailored inter-capital data services! Pacific IX! o Sydney to Auckland Peering Exchange, providing customers with more cost effective and higher speed reciprocal access to cross Tasman content! 10

11 Customer Growth! Customer Base has grown to 136 customers! Customer base quarterly (indicative)! 11

12 Customer Profile!!"#$%&'()*"+'$,,$ No customer contributes more than 15% of revenue! Total number of customers has grown to 136! Solid distribution among revenue brackets! 12

13 Market Outlook! Data Demand is increasing! Weʼre looking at compound annual growth of mobile data in the order of 95 per cent for the next five years Chris Althaus CEO of AMTA! Cisco systems forecast Asia Pacific internet traffic to increase by a CAGR of 35.0% to 2014.! High-definition internet video, VoIP, mobile phone networks and smartphone technology continuing to increase data downloaded.! Annual Growth of Data Downloaded! Source: Microequities Estimates, Nov 2010! 13

14 Market Outlook! NBN National Broadband Network! We see the NBN as posing both a threat and an opportunity for Retail ISPʼs! We only see positives for Vocus especially with the likely increases in demand for international traffic! Vocus is actively monitoring NBN developments and will develop tailored products for the NBN world to help our customers grow in the new environment! Data Centre Market Growth! There is a significant demand for hosting solutions and data centre space Patersons Securities Limited, Dec 2010.! Ord Minnett believes the addressable market is large in Australia as majority of businesses have small rooms that house computing infrastructure with limited redundancy or security Ord Minnett, Dec 2010.! 14

15 Market Position! Vocus occupies a unique position in the market it is solely in the wholesale market and does not compete with its customers in the retail or corporate space! Independence! Competitors compete with their customers and wholesale is not their core business giving Vocus a sustainable competitive advantage! All other competitors derive most of their revenue from their retail/corporate client base, competing with their wholesale customers! Wholesale Focus! 15

16 Other! Contact Vocus:! ! [email protected]! James Spenceley CEO! [email protected]! Mark de Kock Executive Director, Strategy! [email protected]! Richard Correll CFO! [email protected]! ASX:VOC! 16

17 Disclaimer! This presentation contains forward looking statements that involve risks and uncertainties. These forward looking statements are not guarantees of Vocusʼ 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.! 17