Ann: 2016 AGM Results of Meeting, page-3

Quick few take aways from questions asked at the AGM.

Questions:
1) The question on the C1 & P1 growth rate:
* I thought the reasoning behind C1's growth rate was fair and have brought it up before too. We will simply have to give them more time given all the Government Red Tape and the general pace at which Governments conduct business.

* Craig never sufficiently answered the question on the lack of growth at the P1 facility unfortunately.
It was mentioned that P1 could eventually have a return on equity similar to the other facilities, YES BUT WHEN? that is the whole point.

We never heard a real acknowledgement of the poor growth rates in both facilities and any strategies they are employing to right them. To me it gives the impression that it's to easy to just focus on where the business is performing well while turning a blind eye to where it is not.
That capital has already been spent, capacity has already been built. You don't need to spend more capital to achieve new revenue, therefor achieving sales growth here is extremely efficient.

2) The question on building the S2 facililty (& by implication M2) facilities with starting capacity of 2MW.
The technical reasoning behind building to a minimum 2MW commitment makes sense (based on plant sizes and achieving redundancy).
I do have reservations from an investment perspective but.
Why commit $150M of capital to essentially build a 2MW (8%) capacity in a 25MW facility. 25MW/2MW = 12.5Years.
Building initial capacity of 8% to me is a pessimistic view and does not sit well with the investment decision to commit so much capital to build a new facility. I personally would want to see pre-sale commitments of atleast reaching much in the lead-up completing and opening the new facilities.

Lead times for further increases in capacity are stated to be 9-12months.


I and assume others have bought into and follow NXT as a growth story and the expectation of an acceleration in the take up of Data, Space, Power. I would prefer to see M2/S2 open with a much higher initial capacity. Last thing you want to see happen is takeup at a higher rate than expected and you find yourself turning away customers to your competition as you can't meet their demands in a reasonable time frame.

3) The question about the 8MW Metronode Contract in Melbourne Came up.
As expected NEXTDC wasn't in a position to compete for this contract. M1 is a 15MW facility with over > 80% contracted utilisation. Given the pace at which things happen in the Technology space, M2 just wouldn't have come fast enough. It was very unfortunate to not have been in a position to serve this customer.