Sovereign Cloud : FY22 Half Year Investor Presentation

Sovereign Cloud Holdings Ltd
only
FY22 Half Year Results
16 February 2022
use
ersonal	"Our mission is to deliver the leading scalable IaaS platform and service sovereign to
Australia, supporting Government and Critical National Industries, making their

applications and systems more secure, more efficient and more effective for all users and citizens."

Sovereign

Data Protection

Disclaimer

only
use	Sovereign Cloud Holdings Limited and its controlled entity, financial report for the half-year ended 31
December 2021 remains subject to the finalisation of auditor review and sign off. The Company will
immediately make a further ASX announcement to the market if there are any material, differences between
its unreviewed accounts and its final audit reviewed accounts. It is likely the Independent Audit Report will be
ersonal	lodged by 21 February 2022.
	2

1HFY22 Highlights

		Strong	IaaS revenue increased $1.0m (95%) to $2.1m1
		Revenue	• Two consecutive quarters of >$1.0m in IaaS revenue
		Growth	• Project momentum returning post COVID lockdowns
only	Total	TCV Outstanding increased $4.5m (219%) to $6.6m1
• AUCloud secured $3.4 million in TCV Closed during 1HFY22
Contract
• Increase in the period includes 30 new contracts/purchase orders made up of 9 new LAND customers, 5 EXPAND across existing partners
Value
and 16 contract EXTENSIONS
use	Capitalised	Cash at 31 December 2021 of $40.6m following successful $35m capital raising
• Well capitalised to pursue ongoing investment across three pillars of growth: Platforms, Products & People
for Growth
• AUCloud continues to scale up its operations in response to growing customer demand for sovereign cloud services
Network	Continued investment in AUCloud's expanding national footprint
		• Commenced works for new sovereignty cloud platform zone in Brisbane forecast to be in operation by 4QFY22
		expansion	• Established strategic partnerships with 19.99% investor NEXTDC Limited (ASX: NXT) and Arqit Quantum (NASDAQ: ARQQ)
			• Positioning for increased penetration of State Government, Critical Infrastructure and Enterprise markets

				Data sovereignty, security and storage increasingly a key focus for Defence, Governments, Critical National Industries and Enterprises
		Industry	• AUCloud's sovereign credentials independently validated, becoming the first Cloud Services Provider to secure both the HCF 'Certified
		Strategic' and CAAF Phase 2 Authority to Operate2
		Tailwinds
		• Passing of New Federal Government legislation concerning "Critical Infrastructure and Systems of National Significance reforms" will
				continue to create opportunities with security-conscious enterprise through the inclusion of new industry sectors as Critical Infrastructure
Note: Refer Appendix on page 17 for Glossary and key definitions.
1. Percentage increase expressed relative to 1HFY21
2. Refer page 14 for further details
Australia's Sovereign Cloud Provider			3
ersonal

ersonal use only

Financial Performance

4

Profit & Loss

Strong revenue growth offset by investment in the expansion of the national footprint

only	Total Revenues increased $1.0m (73%) to $2.5m1
Underlying EBITDA (loss) of $4.1m
use	‒ Costs in line with Management expectations as AUCloud
continues to invest in scaling its operations
‒ 37% increase in Employee Costs in line with continued
investment in the Team
		‒ Increase in variable costs (License fees, power) in line
ersonal	with greater customer IaaS Consumption revenue
1HFY22 (Loss) before tax of $6.3m (1HFY21: $5.4m loss)

1. Percentage increase expressed relative to 1HFY21

2. 1HFY21 excludes the impact of IPO transaction costs Australia's Sovereign Cloud Provider

Profit & Loss Summary ($m)	1HFY22	1HFY21	Change (%)
IaaS Revenue	2.1	1.1	94.5%
Other Revenue	0.4	0.4	6.8%
Total Revenue	2.5	1.5	72.9%
Employee Costs	(3.9)	(2.8)	37.0%
Licensing Fees	(1.2)	(0.6)	85.6%
Other expenses	(1.6)	(1.6)	1.8%
EBITDA	(4.1)	(3.6)	15.6%
EBITDA (Underlying)2	(4.1)	(3.1)	33.7%
Depreciation & Amortisation	(2.0)	(1.6)	23.4%
Finance Costs	(0.2)	(0.2)	(5.8)%
Profit / (Loss) before tax	(6.3)	(5.4)	17.3%

5