Slide 1: Full Year Results — FY16
REDCEN a FULL YEAR RESULTS — FY16 JUNE 2016 FRASER FISHER — CEO TIM COLEMAN - CFO redcentric business technology. managed.
Slide 2: Redcentric — Business Technology. Managed.
REDCENTRIC — BUSINESS TECHNOLOGY. MANAGED. LEADING OFFERING Leading AIM-listed managed technology services provider Significant Network & Datacentre infrastructure assets | gppucirons DATA 1 fee CENTRE NETWORKS : ' COLLABORATION 9 CENTRIC al ree 7 OWNED CORE NETWORK ' INFRASTRUCTURE . : 24/7 DUAL SI
Slide 3: Year End Financial Highlights
YEAR END FINANCIAL HIGHLIGHTS * Strong revenue growth: revenue up 16% to £109.5m, representing 8% organic growth — Recurring revenue up 17% (11% organic) to £90.2m — Recurring revenue now represents 82% of total * Improved profitability: adjusted EBITDA up 21% to £25.8m — Adjusted EBITDA margin of 2
Slide 4: Year End Operational Highlights
YEAR END OPERATIONAL HIGHLIGHTS Strong sales momentum; 72 new clients & key wins including: * £3.6m NHS contract 28 == Sen . _& sereo . * £1.2m retail sector contract gugks nobia virgincare 2 reoway HAYS * * £1.1m NFP contract ae Wate. 3, cegedim rx a Ae a * Strong customer relationships “L kesse [=
Slide 5: Managed Services Are Growing
MANAGED SERVICES ARE GROWING • • • - - - - - - - •
Slide 6: Case Studies
CASE STUDIES HOWDENS JOINERY CO. WAKING SPACE MORE VALUABLE SERVICES TAKEN + Data Centre Hosting Private hosting suite at Redcentric’s Harrogate data centre * Managed Hosting Service Data Centre Edition Backup, monitoring and managing of data held + Managed Network Services Fully managed network pro
Slide 7: Case Studies
CASE STUDIES Royal Air Force Vp Benevolent Fund pic THE HEART OF THE RAF FAMILY SERVICES TAKEN SERVICES TAKEN + Centralised Management - virtualisation via * Managed Network Services - Around 130 remote sites a Citrix farm linked by an Redcentric VPN + Fully managed Hybrid infrastructure — AV and *
Slide 8: Case Studies
CASE STUDIES i BigHand SERVICES TAKEN ° Infrastructure as a Service (laaS) * — Internet + Managed Security & Firewall * — N3 connectivity BUSINESS BENEFITS “Redcentric was able to give BigHand a low risk, low cost route into N3 BigHand is free to focus on onboarding, the user experience and on-going
Slide 9: Diversified Large Players
Diversified Large Players 101-200 FTEs 201-500 FTEs >500 FTEs 11-100 FTEs
Slide 10: What's Next for Redcentric
WHAT'S NEXT FOR REDCENTRIC Redcentric is integrated, stable, financially strong, operating in a vibrant marketplace with a full portfolio of services that clients want to buy. Redcentric’s assets, offshore operation and high level of accreditations provide a significant barrier to entry. Redcentric
Slide 11: Financial Overview
FINANCIAL OVERVIEW Revenue & EBITDA £120m 4 £100m 4 £80m 4 £60m £40m 4 £20m £0m 109.5 FY14 pro-forma mFY15 mFY16 25.8 Revenue EBITDA * Continued growth in revenue and profitability through a 12p combination of organic growth (recurring revenue +11%) and acquisitions * Effective business model genera
Slide 12: Managed Change in Revenue Mix
MANAGED CHANGE IN REVENUE MIX
Slide 13: Income Statement
INCOME STATEMENT Revenue EBITDA EBITDA margin Depreciation Amortisation Transaction & integration Share option charge Operating profit Finance costs Profit before tax Tax Profit for the period Basic EPS Adjusted EPS Dividend per share redcentric business technology. managed. FY16 fm 109.5 +16% 25.8
Slide 14: Cash-Flow
CASH-FLOW Net debt affected by; * Increased capital expenditure in support of contract wins * Working capital increase * One off costs of acquisition and integration activity New bank facilities provided funding for Calyx and City Lifeline acquisitions Increased use of finance leases where appropria
Slide 15: Debt and Financing
DEBT AND FINANCING £70m 4 Net debt (£m) Mar'16 Mar'15 m Net debt Cash 8.5 3.2 £60m 4 @ Available facilities Drawn debt (28.4) (8.0) £50 Accordion Net bank debt (19.9) (4.8) m 4 OEBITDA Finance leases (5.4) (2.4) Total net debt (25.3) (7.2) £40m 4 A) EBITDA 25.8 21.4 £30m 4 Net debt : EBITDA 0.98x 0.
Slide 16: Redcentric Summary and Outlook
REDCENTRIC SUMMARY AND OUTLOOK STRONG RESULTS * 11% rise in organic growth of recurring, contracted revenue. * 21% rise in profitability: EBITDA £25.8m and margin increased to 23.6% * 24% rise in Adjusted EPS to 10.5p * 29% rise in Dividend to 4.5p POSITIVE OUTLOOK * Rounded portfolio of skills and
Slide 17: Appendix
APPENDIX redcentric business technology. managed.
Slide 18: Redcentric's Indian Investment
REDCENTRIC’S INDIAN INVESTMENT HYDERABAD OFFICE * Key differentiator “~ ne + Wholly owned subsidiary delivering highly ¢ St skilled technical services a ab ¢ ™ * Single team structure between UK & India S > S - Huge skilled resource pool ok YN - os ~~ {8 ~ - 2nd and 3rd line technical resource 2 RT
Slide 19: Balance Sheet
BALANCE SHEET redcentric business technology. managed. Balance sheet (£m) Mar'16 Mar'15 Tangible fixed assets 28.7 23.4 Intangible assets 92.3 82.6 121.0 106.0 Current assets 35.8 18.4 Current liabilities (26.6) (18.5) Net working capital 9.2 (0.2) Cash 8.5 3.2 Bank debt (28.4) (8.0) Finance leases
Slide 20: Earnings Per Share and Dividend
EARNINGS PER SHARE AND DIVIDEND FY16 FY15 Earnings per share Statutory Adjusted Statutory Adjusted £'m £'m £'m £'m EBITDA 25.8 25.8 21.4 21.4 Depreciation (5.8) (5.8) (5.1) (5.1) Amortisation (5.5) (5.5) Transaction & integration (4.6) (0.6) Share option charge (1.4) (1.6) Finance costs (1.0) (1.0)