NEXTDC Limited

Thank you for standing by. Welcome to NextDC Limited Financial Year 2026 Results Announcement Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be question and answer sessions. To ask a question during the session, you will need to press star 11 on your telephone. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Mr Craig Scroggie, Chief Executive Officer and Managing Director. Please go ahead.

Thank you, Amber, and good morning, ladies and gentlemen. Welcome to the NextDC Results presentation for FY26. I'm joined today by our CFO, Oscar Tomaszewski. Our results announcement, presentation and annual report were lodged with the ASX overnight. I draw your attention to the forward-looking statements disclaimer in the presentation. We're beginning on slide four. FY26 was the largest contracting year in NextDC's history. Contracted utilization tripled to 740 megawatts on a pro forma basis, and we exceeded guidance on both net revenue and underlying EBITDA. Net revenue was $405 million. was up 16% on FY25. Underlying EBITDA of $248.8 million was up 15%. Contractor utilization increased 202% to 740 megawatts. Billing utilization increased 58% to 175 megawatts. Turning to slide five. NextDC's forward order book hit a new high, now 565MW on the back of a record sales year where we contracted 495MW. Every MW in that forward order book is a binding customer contract. Importantly, the forward order book will ramp into faster billing growth As data falls, it delivers to our clients quicker and in time for each company district, with record revenue growth in FY27, with 197MW of new billing activation as multiple cloud and AI deployments ramp up. Turning to slide 6, our strong performance is highlighted by record key operating metrics. net revenue, which is total revenue less direct costs, grew 16%. Billing utilisation grew 58% during the year to 175MW, and our forward order book grew to a record 565MW, which will more than quadruple billing utilisation to 740MW by FY30, underwriting substantial organic revenue and EBITDA growth. We remain well capitalised to support our growth plans. Total assets of $10.2 billion, including $5.8 billion of property, plant and equipment, as well as $3.2 billion of investment properties. We have available liquidity of $8.7 billion, giving us substantial balance sheet flexibility to fund our committed pipeline. Our first asset revaluations were included this year for M3 and S4, increasing reported assets and improving reported gearing. Qualifying assets will be revalued annually. Any movements may be gains or losses. Our funding and capital strategy continues to mature. We raised $9.75 billion in FY26, which included a senior debt upsizing of $5.8 billion, subordinated notes of $750 million, hybrid securities of $1.7 billion and $1.5 billion of new equity. Further capital initiatives are underway. including partnerships with third party capital through joint venture structures for S4, S7 and M5 as those projects continue to secure new customer commitments, advance through key development milestones and are further de-risked through a growing base of contracted revenues. We had another record development year. 42 megawatts were delivered at M3 and 12 delivered at M2. S4 is on track with its first slab on ground. Kuala Lumpur 1 opened to Foundation customers and our edge network builds continue in Geelong, the Sunshine Coast and Darwin. I'll now hand over to Oscar to discuss the financial results in more detail.

Thank you Craig. Let's now turn to slide 8, which provides a summary of our profit and loss for the year. The statutory results reflect total revenue of $496.5 million, up 16% on FY25, and net profit after tax of $82.1 million, which includes $129 million fair value gain on investment properties, as well as the recognition of previously unrecognised tax losses. Our non-statutory highlights include net revenue, which was up 16% to $405 million. Direct costs and power pass-through revenues rose in line with customer consumption. Our facility costs grew $11.3 million or 17% with targeted investments ahead of record capacity expansion, including land acquisitions, headcounts across new and expanded facilities as well as maintenance costs across capacity additions and expansions. Our corporate costs increased by 11.1 million, or 17%, as we invest in systems and people to support new site expansion and accelerating customer deployments, with over 400 megawatts of build capacity growth expected across FY27 and 28. underlying EBITDA was up 15% to $248.8 million, almost 4% above the top end of the guidance range. This year, resulting from two of our material customer contract wins, we have an accounting reclassification and a measurement policy change, which we'll talk to later in the presentation. On to slide nine. net revenue growth accelerated in the second half, with strong growth expected to continue to FY27 and beyond. Underlying data growth also accelerated, with the company's core operating platform now ready to deliver operating leverage and record earnings growth. Slide 10 sets out our revenue per unit metrics. The blended rate per megawatt reflects a deliberate shift to more efficient hyperscale and AI deployments. Deals reflect a lower annual per megawatt rate on a 10 to 15 year initial contract term with extension options up to 35 years. Rapid growth in billing from high-intensity hyperscale is rapidly changing the revenue mix. with more than 70% of billing capacity now coming from hyperscale workloads. Our new and existing facility expansions are increasingly using highly efficient cooling technologies, including liquid to chip, which is driving down the cost per megawatt to deliver capacity. And higher power volumes with more efficient cost structures are driving returns. With new hyperscale and AI deployments targeting over 10% yield on cost. Slide 11 summarised our balance sheet and liquidity position. At 30 June, NextDC had property, plant and equipment with a carrying value of $5.8 billion as well as investment properties with a carrying value of $3.2 billion. The investment property values come from revaluing our M3 and S4 Tata Centre assets. We will now have periodic property valuations for qualifying assets going forward, with those assets revalued at least annually. The change to investment property accounting also reduces depreciation and introduces straight line revenue recognition for the relevant sites going forward. We have included significant detail on the accounting policy changes and the valuation process and governance in today's results materials. Our net assets stand at approximately $6.1 billion and NextDC has approximately $8.7 billion of liquidity as we completed several capital initiatives during FY26, including those previously mentioned by Craig. Slide 12. details our debt funding profile. This slide illustrates our evolving capital structure, detailing where the $8.7 billion of available liquidity comes from and confirming all drawn senior debt at 32 and subordinated capital is fully hedged. Importantly, due to the company's credit spending, it is no longer subject to any leverage ratio covenants. Our debt facilities are currently subject to a gearing ratio and an interest cover ratio, where contracted revenues, not yet billing, are included in EBITDA for covenant testing purposes. Slide 13, details our debt funding maturity profile. Across our diversified debt capital stack, our facilities have a weighted average maturity of approximately five years, with no debt maturities until FY30 and a staggered maturity profile beyond that year. Slide 14 details our disciplined approach to capital. In the second half, NextDC has completed a $2.3 billion senior debt upsizing, issuance of hybrid securities with $1.7 billion of base value, providing flexible long-term capital to support growth, subordinated notes of $750 million, broadening the capital stack to include a new pool of investors, and completed a pro rata entitlement offer of $1.5 billion, which was extremely well supported. Additional capital initiatives are underway, including, but not limited to, project financing, where S4 and S7 are expected to transition to a ring-fenced asset-level debt structure over time, ahead of formation of JADCO, and JADCO itself, where we continue to evaluate capital partnership options across our development portfolio. We believe the combination of existing liquidity, additional debt and hybrid capacity, other financing options in flight, as well as selective asset capital recycling initiatives, provides us with multiple pathways to fund the contracted pipeline while protecting shareholder value. I'll now hand you back across to Craig to go through our business performance and outlook for the 2027 financial year.