On behalf of the Board and the team, it gives me great pleasure to invite you to become a shareholder of Aussie
Aussie Broadband has grown to become Australia’s fifth largest provider of nbn™ (NBN) services, connecting more
than 250,000 Residential and Business customers across the country as at 30 June 2020. Over the last four years,
the Company has exhibited rapid growth through a combination of our innovative, competitively-priced NBN
bundles, together with the NBN becoming more widely available across Australia.
The COVID-19 pandemic has fast-tracked digital trends including remote and distributed work, e-commerce,
and the demand for streaming entertainment. The internet is firmly embedded into our daily lives, and high
speed internet has become essential to our work and lifestyle. Aussie Broadband’s business benefits from the
ever-increasing appetite of Australian consumers and businesses for fast and reliable internet connectivity.
Aussie Broadband offers exceptional products and we are known for our customer service. We are very proud
in the knowledge that Aussie Broadband is the highest rated telecommunications service company in Australia
in a number of widely published customer satisfaction scores. Importantly, we have invested in automation to
realise cost and operational efficiencies while maintaining superior customer service through our Australian-based
In May 2020 our business began rolling out our own dark fibre network, which is the first phase of a project that
is expected to replace 63% of the Backhaul infrastructure to NBN points of interconnect (POIs) that is currently
leased from third parties. We expect this significant investment to materially improve future operating margins
on a like-for-like basis.
Aussie Broadband is led by an experienced and diverse management team. Our Managing Director, Phillip Britt,
is an entrepreneurial innovator with more than 24 years’ experience in the telecommunications industry. The Board
and management team recognises that our most significant assets are our people that exhibit and embody our
core values. The Company’s strong culture is based on the belief that the best way to deliver value to our customers
and Shareholders is by creating a place where our people can thrive as part of the Aussie Broadband family.
We want to be very clear that anyone investing in the Company is also investing into our culture and family.
Our business has grown strongly over the past three years and we expect to maintain this growth in FY21F. As at
the end of FY18 the Company provided approximately 60,000 Residential connections and generated revenue
of $49.27 million, and by the end of FY21F we forecast this to grow to approximately 368,000 Residential
connections and pro-forma revenue of $338.10 million.
The growth in the Company’s business is reflected in its revenue numbers, which have continued to strengthen
in recent years. In FY20, the Company returned to a positive EBITDA result of $1.58 million (on a pro-forma EBITDA
basis), and this is forecast to grow to $12.66 million in FY21F (on pro-forma basis). Similarly, the operating cashflow
generated by the Company reached $6.70 million in FY20 (on a pro forma basis) and is forecast to grow to
$19.98 million in FY21F (on a pro-forma basis).
Though the Company is 12 years old, listing on the ASX and becoming a public company marks the beginning
of the next chapter of our journey. The Board and management team are committed to executing on the growth
plan and have ambition to deliver this growth in alignment with the Company’s core values.
On Completion of the Offer, Aussie Broadband’s pro-forma cash balance as at 30 June 2020 is expected to
be $48.19 million and $57.55 million (at the Minimum Subscription and Maximum Subscription respectively),
which will enable the Company to execute on its strategic goals, including accelerating infrastructure development,
customer acquisition, ongoing development and launch of innovative new products and the expansion of our
growing business offering.
Through this Prospectus, Aussie Broadband is making an offer to raise up to $40.00 million by inviting certain existing
Shareholders, investors and Eligible Customers to subscribe for up to 40.00 million Shares at the Offer Price of $1.00
per Share. In addition, this Prospectus includes an offer of up to 450,000 Shares to Eligible Employees, who can
each apply for up to 1,000 Shares for nil consideration. Existing Shareholders, including founders, management and
Directors are anticipated to hold approximately 83.09% and 78.73% of the total Shares on issue upon Completion
of the Offer (on the Minimum Subscription and Maximum Subscription respectively).
This Prospectus contains detailed information about the Offer, the telecommunications industry, Aussie Broadband’s
business and our historical and forecast financial performance. In particular, an investment in Aussie Broadband
involves a range of company specific and industry wide risks; some of which may not be within the Company’s
control. The key risks relevant to an investment in the Company are discussed in detail in Section 5.
Applications for Shares can only be made by completing and lodging an Application Form accompanying
this Prospectus. Instructions on how to apply for Shares are set out in Section 7 and on the Application Form.
I encourage you to read the Prospectus carefully and in its entirety before making an investment decision and
further recommend that you seek professional advice from your accountant, financial adviser, stockbroker, lawyer
or other professional adviser, if required.
On behalf of my fellow Directors and our management team, we look forward to welcoming you as a Shareholder.
Aussie Broadband Limited