Professional Documents
Culture Documents
PRESENTATION
(HKSE: 1686)
February 2023
DISCLAIMER
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2
SUNeVision AT A GLANCE
The largest Hong Kong based data centre service provider with differentiating capabilities
1.5 + 1.4²
million sq ft GFA Cloud Gateways
Note: 1. Current capacity of 1.5 million sq ft GFA represents a market share of approx. 26% of Hong Kong high-tier data centre market based on company’s estimate as at 31 December
2022; 2. Represents future pipeline capacity; 3. FNAL and RNAL are counted as a single system, based on the same classification used by The Office of the Communications Authority
3
(OFCA); 4. Asia Direct Cable (ADC) has officially landed its Hong Kong segment at HKIS-1 while city PoP will be located at MEGA Plus; 5. All major cloud gateways that have presence
in HK including AWS, Azure, Google, Alibaba, Tencent etc.
PROVEN TRACK RECORD OF GROWTH OVER 22 YEARS
1 2 3 4
22+ years track record of Consistently maintained
Over HK$20.2b of total Strong revenue CAGR of
developing data centre portfolio industry leading EBITDA margins
capital invested over the years1 13% from FY2017–2022
and building strong clientele of over 60% in the past 11+ years
2H Revenue (HK$mn)
1H Revenue (HK$mn) 2022:
Opening of
MEGA Fanling
2001:
2017: 2022:
Opening of
Opening of Opening of 1Q CY23:
MEGA-i
MEGA Plus HKIS-1 MEGA
2000: Gateway
Opening of
JUMBO 2013:
MEGA Two
2000: further 2
Opening of expanded 2,086
2
ONE 1,874 4Q CY23:
2
1,714 MEGA IDC
2007: 1,561 (Phase 1)
1,365 1,091
Opening of
951
MEGA Two 1,142 895
999
918
846
706 765
631
522 544
406 1,108
323 819 923 995 CIP:
HKIS-2
FY2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23
Gateway
Fanling
HKIS-1
HKIS-2
MEGA
MEGA
MEGA
IDC
Location Fanling Tsuen Wan Tseung Kwan O Chung Hom Kok Chung Hom Kok
GFA 129k sq. ft. 201k sq. ft. 1,212k sq. ft. 20k sq. ft. 29k sq. ft.
Jumbo
MEGA
MEGA
Plus
Two
One
Location Tseung Kwan O Chai Wan Sha Tin Kwun Tong Tsuen Wan
GFA 474k sq. ft. 350k sq. ft. 429k sq. ft. 20k sq. ft. 120k sq. ft.
✓ Telco (China) and Internet
✓ Tier 3+ & Tier 4 ready ✓ Most connected telco and
gateway with Growing ✓ First data centre of
✓ Purpose built state-of-the- ISP hub in the region ✓ Cost effective facility
ecosystem SUNeVision
Highlight art flagship facility ✓ ~15,000 cross-connects Earliest brownfield
✓ Dedicated for data centre ✓ Convenient site in CBD for
✓ Greenfield site without ✓ Unrivalled connectivity conversion site
use with heavy loading enterprise clients
sub-leasing limitation advantage
support
5
DIVERSIFIED CUSTOMER FRANCHISE WITH BOTH HYPERSCALE AND
RETAIL CUSTOMERS
Top 1
18%
Customer
49%
Top 2
14%
Customer
Top 3-5
17%
Customers
CDN & OTT AI Gaming
SUNeVision is pleased to announce another strong interim results for 1H22/23 amid global uncertainties
✓ Asia Direct Cable (ADC) has landed its Hong Kong segment at HKIS-1
✓ The advanced optical fibre submarine cable system will provide substantially more connectivity between Hong
ADC landing at HKIS-1 Kong and other countries
✓ ADC is just one of several cables to land in Hong Kong in the coming years, depicting Hong Kong’s importance as
a major international data hub
✓ The Judicial Review case regarding the subletting issue at the Tseung Kwan O Industrial Estate (TKOIE) has
Final Winning of concluded, with SUNeVision’s final winning of the case
TKOIE Lawsuit ✓ HKSTPC should rectify breaches of lease provision by data centre operators and ensure such land will not be
misused for inappropriate data centre use
8
Footnote: 1. % change is calculated based on related numbers in thousand.
EXPANSION PLAN PROGRESSING AS SCHEDULED
Construction of MEGA Gateway has been completed with customers starting to move in; Target opening of
MEGA IDC (Phase 1) by 4Q2023
(MW)
130+ 280+
Ready for
Service
Imminently
50
20 100
10 80
70
2H2021 MEGA Fanling 2H2022 MEGA Gateway 1Q2023 MEGA IDC MEGA IDC Total
(Operated in (Ready for service: Phase1 Phase 2
Late-Jun 2022) 1Q2023) (Ready for service:
4Q2023)
9
LAUNCH OF MEGA GATEWAY
Construction of MEGA Gateway completed. Customers have started their fit-outs and have begun to move in.
Operations will commence shortly. Strong demand from connectivity customers with 65% pre-commitment
10
MEGA GATEWAY HIGHLIGHTS
MEGA Gateway is a green-field data centre development meeting current and future customers needs of high-
tier, high power density and strong connectivity
11
Note: 1. Source from TeleGeography “The State of the Network 2022”
MEGA IDC PROGRESSING WELL
▪ Major updates
▪ Key Highlights
Location: Tseung Kwan O − Direct fibre cross-connect to MEGA-i via iAdvantage’s TKO Connect
GFA: 500K + 700 k sq. ft. between Chai Wan and Tseung Kwan O
MW: 50 + 130 MW
12
Note: Area outlined in red is Phase 1 of MEGA IDC
ASIA DIRECT CABLE (ADC) LANDS AT HKIS-1
The ADC has landed its Hong Kong segment at SUNeVision’s HKIS-1, with a new City Point-of-Presence (PoP)
at MEGA Plus. This will enable substantially more connectivity between Hong Kong and other countries
13
FINAL CONCLUSION OF JUDICIAL REVIEW
A fair and healthy environment is beneficial to every participant in innovation and technology industry
Sep 2018
• SUNeVision applied for judicial review to challenge HKSTP’s decision not to take
immediate steps to rectify the failure / refusal to take reasonable steps to enforce Next Steps
restrictions in leases against subletting, parting with possession and/or sharing of
occupation
HKSTP has misconstrued the
Jun 2019 Occupation Restriction under its
own Lease Restriction Policy and
• Court of First Instance rejected the grounds of judicial review must rectify according to the
• Subsequently, SUNeVision filed an appeal against the first instance judgement court ruling
May 2022
• The Court of Appeal allowed the appeal against the first instance judgment lodged by
SUNeVision
Potential paths forward put forth in
Jun – Dec 2022
the public domain:
• HKSTPC applied to the Court of Appeal for a leave to appeal, and is awaiting decision
from the Court of Appeal
14
1H22/23 FINANCIAL REVIEW
STABLE REVENUE GROWTH DRIVEN BY DEMAND FROM CUSTOMERS
Strong revenue growth of 11% YoY to HK$1,108mn reflecting strong demand for high-quality data centre space from
both hyperscale and connectivity customers
Net Revenue¹
(HK$mn) Total IT Capacity²: ~80MW
IT Occupancy³: ~78%
1,091 1,108
995 85 89
923 951
895 61
819 67 61
91
89
1,006 1,019
890 934
805 856
729
Note: 1. Net revenue from data centre and IT facilities, ELV and IT systems only; 2. IT capacity in MW as at end of financial period; 3. IT capacity occupied in percentage as at end of
16
financial period;
HEALTHY EBITDA GROWTH AND MARGINS
3,500
EBITDA increased 11% YoY to HK$805mn and NPAT increased 6% YoY to HK$433mn. EBITDA margins 100%
3,000
remained strong at 73% with NPAT margin decreasing slightly due to increased finance cost
1,800 1
1,600
(HK$mn) (HK$mn)
80%
41% 41%
2,500
2,000
1,200
60%
1,501
1,000
847
1,500
1,360 0
788 -
1,186 40% 800
709 -
0
15
1,000
600
805 0
728 433
410
20%
400
- -
694
0
500
200
- 0%
- -
FY19/20 FY20/21 FY21/22 1H21/22 1H22/23 FY19/20 FY20/21 FY21/22 1H21/22 1H22/23
EBITDA Margin NPAT NPAT Margin
2
(Discontinued ops.)
Note: 1. NPAT refers to profit attributable to owners of the company excluding fair value increase in investment properties; 2. Discontinued operations refer to the investment property
17
holdings of Millennium City 1 and Kodak House II.
STRONG FUNDING PLATFORM WITH COMPETITIVE FINANCING COST
Access to competitively priced bank financing and strong financial support by major shareholder
19
APPENDIX
Sizable and growing addressable market
1
driven by secular tailwinds
21
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY
SECULAR TAILWINDS
Unprecedented demand for data and traffic continues to drive demand for DC services. HK is a global DC hub
in the fastest growing region for DC
Demand for data and traffic HK public cloud market1 HK data centre market2
Cloud Software (US$m)
Technologies Cloud Infrastructure (US$m)
20-25E
1,955 CAGR 5.8mn sq ft
~2.5x 2022 HK DC GFA
5G Access
1,220 20%
IoT
783 + 5.6mn sq ft
AI
GFA growth 2022-27E
487
Big Data
735 20%
296
Data & Traffic
Demand 2020 2025E
• Public cloud network in HK expected to grow • One of the global DC hubs, with superior
Social Media at 20% CAGR from 2020-2025E connectivity, stable power supply and
supportive government policies
Mobile ‒ Cloud infrastructure to grow at 20%
Device CAGR, ~2.5 times the market size in 5 • Significant investments continued in 2022
years despite a global pandemic
• Strong tailwind of demand from public cloud • Existing demand largely connectivity driven
Multimedia Digital
vendors, MNC entering China and domestic and supported by BFSI3 and telcos
Content Entertainment
seeking overseas expansion
• Capacity driven demand by cloud service
• Both global and Chinese hyperscale providers and enterprises likely to prevail in
User Experience companies projected to command a growing near future
share of data centre demand in markets such
as Hong Kong, Japan and Singapore
22
Source: 1. IDC; 2. Company’s estimate of high-tier DC market as at 30 June 2021; 3. BFSI: Banking, Financial Services and Insurance.
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY
SECULAR TAILWINDS
Hong Kong – global connectivity hub with subsea cables concentrated around the city
100ms
Round trip Latency
– Prime geographical position within 100ms
round trip across APAC
Bhutan
– 12 out of 15 intra-Asia subsea cables2 are
Taipel
Hong Kong Taiwan
connected to HK
Vietnam
Myanmar
Hanoi ✓ Long history of free trade practice & trusted data
Laos
Naypyidaw protection scheme
Rangoon Vientiane
Thailand Manila ✓ Global recognition as distinctive location for data
Bangkok Guam
Cambodia Philippines Sea storage & transmission
Phnom Penh
Philippines ✓ Free flow of information with no censorship of
content
Sulu Sea Melekeok
Kuala Bandar Seri Begawan
Lumpur Brunet PALAU
Celebes Sea
Malaysia
Singapore
Indonesia
Source: 1. Structure Research, “2018 Global + Asia Pacific Data Centre Trends”, May 2018.
23
Note: 2. FNAL and RNAL are counted as a single system, based on the same classification used by The Office of the Communications Authority (OFCA).
1 SIZABLE AND GROWING ADDRESSABLE MARKET DRIVEN BY
SECULAR TAILWINDS
Reliable and abundant power supply and supportive government policies further serve as HK’s competitive
advantages for data centre services
1 2
CLP HK Electric
– Data Centre Facilitation Unit
Established to provide integrated support and
Supplies electricity to Supplies electricity to services to operators in Hong Kong
Kowloon and the HK Island and Lamma Supporting
New Territories with a Island with a supply Authorities
supply reliability of 99.999% reliability of 99.999%
HKIS-1 HKIS-2
New data centre under construction
High-performance fibre connections Gateway to Rest of the World
(Submarine cables) Prime Spot for Data Traffic Growth
25 Note: 1. FNAL and RNAL are counted as a single system, based on the same classification used by The Office of the Communications Authority (OFCA); 2. ADC officially landed its
Hong Kong segment at HKIS-1 while city PoP will be located at MEGA Plus
3 DIVERSIFIED, QUALITY AND STICKY CLIENT BASE
Diversified clientele with robust and accelerating demand from both hyperscale and retail customers, with top
5 customers accounted for ~49% of data centre revenue
Self owned
39% data centre use
• Host their fast-growing data
MEGA Two
• Strong demand for high power density ✓ High specs brownfield conversion project into Tier 3+ DC
Hyperscale data hall space with high resilience
29% Capacity against disruption MEGA IDC and MEGA Gateway (RFS Soon)
✓ Purpose-built high-power density and connecting facilities
• Global hyperscale customers to expand
into China / Chinese hyperscale
Leased
MEGA Fanling (Opened in June 2022)
customers to expand out of China ✓ Group’s first single-user data centre fully pre-committed
from inception
MEGA-i
• New economy players and traditional ✓ HK’s no.1 most connected interconnection ecosystem,
Self owned
3% 3% 2% businesses going digital, connecting with ~15,000 cross-connects
with others ✓ Leading peering community linking up global and regional
Connectivity
telcos, ISPs, cloud and new economy players and enterprises
• Video conference, e-commerce,
Equinix HKCOLO Digital PCCW ✓ Main data gateway between HK, PRC and the world
gaming and other online applications
Realty Solutions MEGA Gateway (RFS Soon)
✓ Purpose-built and complementary to MEGA-i
Note: *Total number of service providers within all the
facilities the data centre operator has within Hong Kong. • Combination of different types of assets provides more services and caters to need of different customers
Source: Cloudscene website as of Dec 2022. (from colo to hyperscaler)
• Significant growth potential on the back of client relationship and existing strategic locations
Customer Universe
Cloud Financial Inst Telcos MNCs Domestic Co. E-commerce Social Media Fintech Streaming
26
4 PROVEN DUAL CORE STRATEGY FOR FUTURE GROWTH
✓ Offers better control over cost and return on – Identification of land and building
individual projects for conversion
✓ Helps secure financing at attractive rate – Large land bank in Hong Kong
MEGA PLUS
(Tseung Kwan O) ✓ Reduces upfront capital requirement
✓ Provides flexibility to undertake
more projects
✓ Accelerated growth from brownfield projects
given shorter development-to-operational
MEGA Two MEGA IDC MEGA Gateway JUMBO ONE lead time (<12 months) MEGA Fanling
(Sha Tin) (TKOTL 131) (TWTL 428) (Tsuen wan) (Kwun Tong) (Fanling)
27
5 INDUSTRY VETERAN MANAGEMENT AND STRATEGIC
SHAREHOLDER SUPPORT
Veteran management and strong backing by strategic shareholder, enabling the fastest and most efficient
high-tier data centre build in Hong Kong
Industry Veteran Management
Key Leadership
Raymond Tong Martin Chan Helen Lo Elisha Tong Alvin Hui Magdalene Lee
CEO & COO & General Manager, General Manager, Head of Technology Director of Human
Executive Director Executive Director Commercial Commercial Resources
Year joined: 2018 Year joined: 2012 Year joined: 2020 Year joined: 2019 Year joined: 2019 Year joined: 2019
Selected Work • Maxim’s Group • PCCW Limited • Monitor Consulting • IBM • Yahoo • SmarTone
Experiences • Sumitomo • Paxus Financial System • Tencent Group • Prudential Assurance • Johnson & Johnson
• China Resources • Tencent Music • Trane Hong Kong
Microeletronics Limited Entertainment • Banco Santander
• Pacific Coffee
Strategic Shareholder
SHK Properties (0016.HK)
• Execution of high-tier greenfield DC
project in HK is complex and
✓ One of the World’s largest real estate ✓ Identification and purchase of land and challenging
building for conversion
developer by market capitalisation1 • Typical timeframe is c. 4-5 years
✓ Provides expertise with proven track ✓ Design and project management ✓ Delivered MEGA
record ✓ Construction expertise Plus with the highest
✓ SUNeVision + SHKP together possess ✓ Meeting various regulatory requirements efficiency and
end-to-end core competence in HK quickest timeframe
✓ DC operation and customer servicing (3.5 years)
28 Note: 1. Market capitalization of SHK Properties is US$40.6 billion as at February 21, 2023
ESG AND SUSTAINABILITY INITIATIVES
SUNeVision believes sustainability is key to a successful business, implementing sustainable initiatives from
environmental-friendly DC designs to community investment to structured employment and labor practices that
attract top talents
Environment Awards
✓ Ambitious target of achieving an overall COP1 of 5+ for the Group’s chillers by the year 2030 2021 MultiCloud
2021 Best DC
‒ Substantial decrease in carbon intensity for DC cooling Mngt (Northeast
Provider (Overseas)
Asia)
✓ Green building: BEAM Plus in MEGA-i, MEGA Two and MEGA Plus Award
Community
2021 InnoESG
✓ Supported CFA Institute Research Challenge 2020/21 Prize
✓ Supported CLP Retro-Commissioning Charter program
✓ Foster digital awareness and inclusion in community: Foundation partner of Infrastructure Only DC provider in HK to receive
Masons HK Chapter in 2021 the Renewable Energy Contribution
Award by CLP for the second
consecutive year in 2021
Employment and Operational Practices
Solar Panel at MEGA Plus
✓ Full senior leadership commitment for inclusive management and coaching, work life balance
and family friendliness
✓ Values equality and diversity with 50% female representation in management position
✓ 24-hour Hearty Hotline service to provide professional counselling and consultation service
Note: 1. Coefficient of Performance; 2. Due to insignificant waste generation in Super e-Technology and Super
29
e-Network, the total non-hazardous waste generation has covered iAdvantage only.