Slide 1: FY20 Half Year Results Presentation
For personal use only FY20 Half Year Results Presentation 26 February 2020 CommsChoice Group Limited (ASX: CCG) This document has been approved by the Board of Directors.
Slide 2: Disclaimer
Disclaimer For personal use only The material in this presentation is a summary of This presentation provides information in summary form only accordance with International Financial Reporting Standards. CommsChoice Group’s (CCG) activities and results, and is and is not intended to be complete. It
Slide 3: 1H FY20 Results
1H FY20 Results For personal use only Strong return to profitability with EBITDA of $1.5m which compares with pcp EBITDA of $0.1m. Underlying* EBITDA of $1.3m. Revenue of $9.7m which is $1m lower than pcp. One off revenue declined by $1.2m due to higher one-off items from key customer projects in FY
Slide 4: 1H FY20 Highlights
1H FY20 Highlights For personal use only Business Targeted Cost Restructured Restructure - Savings of Circa Sales Team with Announced to $2M focus on indirect ASX June 2019 last 6 mths Strong 1st Half sales Complete Delivered deals signed >$100k MRR Enhanced Website & Strong Customer Service Return
Slide 5: Financial Performance 1H FY20
Financial Performance 1H FY20 For personal use only $M 1H FY20 1H FY19 Revenue Breakdown 1H FY20 Revenue 9.7 10.7 - One off / install fees 0.5 1.7 13% - Service fees 9.2 9.0 Cost of Sales (5.1) (5.9) 25% Gross Margin 4.6 4.8 62% Opex (3.1) (4.1) Restructuring Costs - (0.6) EBITDA 1.5 0.1 Underlying*
Slide 6: Balance Sheet Dec 2019
Balance Sheet 31 Dec 2019 For personal use only $m Group 31 Dec 2019 30 June 2019 Cash 1.9 0.4 Key Highlights Total assets 19.3 15.7 • Strong balance sheet with $1.9m cash at bank end of Dec Borrowings 0.2 0.4 2019 • Tax losses of $3.4m available Total liabilities 6.5 6.3 for use (equivalent to DTA
Slide 7: Key Product and Systems Initiatives – Last 6 months
Key Product and Systems Initiatives – Last 6 months For personal use only Major refresh of website plus on-line ordering capability introduced with launch Dec 19. Included a revamp of our product offerings and price points. Enhancement of CommsChoice’s Global Cloud Phone infrastructure – additional
Slide 8: Sales and Customer Service Initiatives – Last 6 months
Sales and Customer Service Initiatives – Last 6 months For personal use only Restructured go-to-market approach with 3 key channels to market and key executives assigned to head up each segment. • Business (SME) and Dealer Sales. • Wholesale and Partner Sales – larger more complex partners and whole
Slide 9: Executive Management Team
Executive Management Team For personal use only Note: Appointment of Mr Adrian Luciano announced 6 Feb 2020
Slide 10: Pillar Growth Strategy
4 Pillar Growth Strategy For personal use only Domestic Wholesale Overseas Strategic Growth Partners Growth Acquisitions SME Contact centre / IT Corporate SME Corporate Mid Mkt service provider / Multi-national Corporate Carriers Global cloud Cloud business SIP services, CTS business phone and SME t
Slide 11: Outlook
Outlook For personal use only Strong start to FY20 with first half profit performance Expectations of continued positive EBITDA performance moving forward Reaffirming FY20 guidance of EBITDA $1.8m to $2.2m. With the FY19 announced restructure now complete, the key focus is on executing a profitable
Slide 12: For personal use only
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Slide 13: Appendix - CCG Investor Metrics
Appendix 1 - CCG Investor Metrics For personal use only Value Number of shares (as at 19 Feb 2019) 191.4m Share Price $0.062 Market capitalization $11.9m Net (debt) / cash (31 Dec 2019) $1.7m Enterprise Value $10.2m Performance Rights on Issue - 50% vesting at 12.5c per share 16.9m - 50% vesting at
Slide 14: Appendix – Company Overview
Appendix 2 – Company Overview For personal use only 5 ICT providers came together in 2017 to form Comms Choice Group Compelling market opportunity – Technology changes, Cloud services, NBN rollout Strong complementary skills and DATA VOICE MANAGED capabilities with well articulated NETWORK NETWORKS
Slide 15: Appendix - CommsChoice Global POP Network
Appendix 3 - CommsChoice Global POP Network For personal use only Our global POP network hosted in 25 locations around the world. Delivering Global Cloud Business Phone PBX + Global Microsoft Teams calling.