Slide 1: Financial Year 2020 Results Presentation
For personal use only Financial Year 2020 Results Presentation 26 August 2020 CommsChoice Group Limited (ASX: CCG)
Slide 2: FY20 Financial Highlights
FY20 Financial Highlights For personal use only CommsChoice announces significant increase in profit providing a strong base for future growth Full year Underlying EBITDA* of $2.3m which is up almost 700% on last year and at the top end of market guidance. FY20 total revenue of $19.3m – lower tha
Slide 3: Financial Performance FY20
Financial Performance FY20 For personal use only $1M FY20 FY19 12% Recurring revenue 18.3 18.8 Up front and hardware/software revenue 0.8 2.2 Other 0.2 0.0 Total Revenue 19.3 21.0 COGs 10.1 12.0 Revenue 22% Gross Profit 9.2 9.0 Breakdown Gross Margin 47.7% 42.9% FY20 Operating Expenses * 7.0 11.4 E
Slide 4: Balance Sheet
Balance Sheet For personal use only $1M 30-Jun-20 30-Jun-19 Cash 2.4 0.4 Working Capital 0.9 -2.2 (current assets less current liabilities) Non Current Assets 15.1 12.5 Non Current Liabilities 2.0 0.9 Net Assets 14.0 9.4 Strong balance sheet – debt free Cash of $2.4m at 30 June 2020 $1m in undrawn l
Slide 5: Cash Flow
Cash Flow For personal use only $1M FY20 FY19 Operating cashflows including rent 2.4 -1.9 and capitalised wage payments Less: payment of restructuring costs 1.4 - Less: payment of prior year corporate tax 0.3 - Adjusted operating cashflows 0.7 -1.9 Less Other investing activities 0.2 0.4 Plus other
Slide 6: Business Summary
Business Summary For personal use only CommsChoice is a leading business Telco service provider with a broad product suite servicing SME & corporate customers and wholesale & partner customers. Primarily operating in Australia and increasingly offshore supporting corporate customers and key partners
Slide 7: Product & Customer Examples
Product & Customer Examples For personal use only Voice Networks Data Network Managed Services Services • Replace legacy ISDN & PABX lines • Multi-carrier • SD WAN • Advanced cloud business phone • Fibre, NBN • Design, Deliver, Ongoing (domestic) Management and Support • NBN Enterprise Ethernet • Gl
Slide 8: Industry Overview
Industry Overview For personal use only CommsChoice addresses the market Figure 5: Enterprise and Business ICT Solutions and Managed Services for Corporate and Business ICT, including Market Revenue in Australia, New Zealand and Singaposre, 2015 to 2022 the delivery of ICT solutions, services and eq
Slide 9: CommsChoice's UCaaS Offering
CommsChoice’s UCaaS Offering For personal use only In the UCaaS space, CommsChoice focuses on Microsoft Teams calling offerings with our own leading Global platform for Direct Routing telephony integration into Teams. Microsoft is a leader in the UCaaS space today Teams is one of the fastest growing
Slide 10: Customer Case Study: Managed Services Contract
Customer Case Study 1 Managed Services Contract - Voice, Data (NBN), SD-WAN For personal use only Leading national charity helping vulnerable Australians move towards independence Five year Managed Services contract (from 2018) State-of-the-art Unified Comms solution and cutting edge software-define
Slide 11: Customer Case Study: Microsoft Teams calling
Customer Case Study 2 Microsoft Teams calling For personal use only A national childcare operator had an urgent requirement for a remote working / work-from-home comms solution at the beginning of the COVID-19 crisis The customer wanted to roll out a state-of- the-art Unified Comms solutions and Mic
Slide 12: Customer Case Study: Global PBX International
Customer Case Study 3 Global PBX International For personal use only Leading international wholesale travel Our leading cloud phone system - business, three year contract (from 2019) business PBX functions across global locations Global Cloud business phone rollout with advanced PBX functionality Lo
Slide 13: Key Differentiator – Our Microsoft Teams calling Global Network
Key Differentiator – Our Microsoft Teams calling Global Network For personal use only A core strength of the business is our competence and engineering excellence in the IP Telephony space where we trace our origins back to the Telegate business we acquired in 2017. Telegate is a pioneer in IP Telep
Slide 14: Our expanding global network
Our expanding global network For personal use only CommsChoice Group | 2020 FY20 Results 13
Slide 15: Pillar Growth Strategy
4 Pillar Growth Strategy For personal use only SME and/or Corporate service providers,data & Managed IT com- Domestic Wholesale Overseas petencies Strategic SME and/or Corporate service Growth Partners Growth providers,data & Managed IT com- Acquisitions petencies • SME • Contact centre / • Corporat
Slide 16: Outlook
Outlook For personal use only Very pleasing result in FY20, returning the business to profitability Recent Covid-19 challenges have resulted in some delayed buying decisions in Q3 & Q4 We expect to see some steady growth into 2nd half of financial year and are hopeful of closing some sizeable UCaaS
Slide 17: Appendices
For personal use only Appendices
Slide 18: Appendix - CCG Investor Metrics
Appendix 1 - CCG Investor Metrics For personal use only Value Number of shares 191.4m Share Price (21 Aug 2020) $0.099 Market capitalization $18.9m $2.4m cash Cash at bank 30 June 2020 Zero debt Enterprise Value $16.5m Performance Rights • 50% vesting at 12.5c per share 18.0m • 50% vesting at 20c pe
Slide 19: Appendix - Key Product and Systems Initiatives FY20
Appendix 2 - Key Product and Systems Initiatives FY20 For personal use only Major refresh of website plus Phase 1 of on-line ordering capability introduced. Further developments with on-line ordering to be undertaken in FY21. Undertook a review and rationalisation of our product set including reduci
Slide 20: Disclaimer
Disclaimer For personal use only The material in this presentation is a summary of and liability for these forward-looking statements Financial Reporting Standards and, therefore, may not be CommsChoice Group’s (CCG) activities and results, and (including without limitation, liability for fault or n
Slide 21: For personal use only
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