Ann: AGM Presentation, page-56

Agree SW. I am still a strong believer in this stock. The operating leverage they can achieve on their key assets being their “loops” in Syd, Bris, Melb, HK and Singapore have huge utilisation potential and most revenue will drop straight through to the bottom line. The indigo cable  is now ready to go and connected into NXT data centres in Sydney and Perth..so it’s go time.

I also understood the rationale for the BigAir acquisition. All this infrastructure was the key to a strong infrastructure/wholesaler in the the dark fibre/ fixed wireless/5G growth markets.Over the past year or so it appears SLC pivoted and decided to go retail and residential as well with Nuskope and GX2 and consolidated into a segment called superbb. In telco terminology, this means they are now playing in more layers rather than the infrastructure/wholesale layers they started out to do. SLC has also recruited new exec talent on this basis.

My take is the market hasn’t necessarily liked SLC’s pivot away from its core strategy as an infrastructure provider (this is where there key competency and Bevan’s past experience has been with pipe networks). It remains to be seen if this broader strategy will pay off. Let’s hope so.

I dont think this strategy has been communicated to market (investors) all that well why they have pivoted either. Ie, was GX2 to acquire a particular software/system for part of SLCs operations? Because, becoming a managed service provider for hotels, student accom etc across 5 countries is a quite divergence from being a dark fibre provider, wireless enterprise business.I do understand that companies evolve and there are success stories from innovation and pivoting. Just look at Amazon with AWS. However, back to what good companies do well - it’s difficult to do a few things very well and that’s where great companies succeed and where companies struggle is to do too many things well. Let’s hope SLC hasn’t spread itself too thin and competing in a tough and uncertain rsp market in Aus.

Just my observations and opinion on why this may have been belted (apart from macro). I do take comfort in the fact that Bevan has stepped back so he must be somewhat comfortable with where this is at....that is unless the opportunity cost of him focusing on MP1 and other new ventures was not too great...

Still think the infra assets are key and why I’m holding/accumulating. A little more clarity on the strategic direction would be nice though and I think the market would appreciate it as well.