Gamma Communications Plc · LSE:GAMA
Gamma Communications — Investor Day (June 2021)
53 slides from Gamma Communications's investor day presentation, Jun 10, 2021
Slide 1: Gamma Communications plc Capital Markets Day
Gamma Communications plc Capital Markets Day Market Opportunity and Product Portfolio 10th June 2021 Working smarter, together.
Slide 2: Agenda
Introduction 01. Andrew Taylor Agenda 2023 Strategy and the Growing Opportunity 02. Andy Morris Market Segmentation and Product Portfolio Capital Markets Day 03. Chris Wade Wrap-up 10th June 2021 04. Andrew Taylor Q&A 05. Andrew Belshaw & Andrew Taylor
Slide 3: Objectives for the day
Introduction Objectives for the day • Reconfirm Gamma’s 2023 growth strategy and execution progress • Provide an update on the market opportunity • Provide an update on Gamma’s product strategy and explain how Gamma’s product portfolio fits with the market opportunity • Demonstrate some of Gamma’s n
Slide 4: Gamma Senior Leadership Team
Gamma Senior Leadership Team Introduction ü CEO Andrew Taylor ü Chief Financial ü Chief Marketing & Managing Director Germany Officer Product Officer UK Channel Achim Hager Andrew Belshaw Chris Wade Daryl Pile ü Chief Strategy & Chief Technical Managing Director Benelux Operations Officer Officer UK
Slide 5: A quick snapshot of our business
Introduction A quick snapshot of our business • A developer and provider of UCaaS, CCaaS, voice, data and mobile communication services £393m Revenue +93% ARR +1,500 employees • Focused on the UK and European B2B £79m EBITDA* no debt located in mainly the UK, communications market Excellent cash gen
Slide 6: Market & Customer Drivers – positive growth trends
Introduction Market & Customer Drivers – positive growth trends • UCaaS is a key enabler for flexible and remote working across all business types and sizes Rapid increase in Increased adoption of Companies accelerating their • CCaaS enables and optimises the delivery awareness and demand of remote
Slide 7: Core Gamma Foundations – Why we win?
Introduction Core Gamma Foundations – Why we win? Product Network Quality Digital Platforms Commercial Agility People Driving innovation Backed up by strong Providing all channels Providing our partners Human aspect of our through a strong and network foundations with the digital edge leverage and f
Slide 8: Agenda
Introduction 01. Andrew Taylor Agenda 2023 Strategy and the Growing Opportunity 02. Andy Morris Market Segmentation and Product Portfolio Capital Markets Day 03. Chris Wade Wrap-up 10th June 2021 04. Andrew Taylor Q&A 05. Andrew Belshaw & Andrew Taylor
Slide 9: Our 2019 view of the market evolution
2023 Strategy and the Growing Opportunity Our 2019 view of the market evolution 2019 Cloud UCaaS Telephony wave wave SIP wave VoIP bundled Full stack Simple VoIP with Hosted integrated telephony PBX experience Mid-term Long-term 3-5y >5y Source: Outvise analysis
Slide 10: 2021 market situation
2023 Strategy and the Growing Opportunity 2021 market situation Today PUSH COVID HEALTH MEASURES PUSH USERS AND UCaaS BUYERS Cloud wave PUSH Telephony wave Full stack SIP wave integrated TELECOM + VoIP bundled experience ICT Simple VoIP with Hosted telephony PBX NOW Source: Outvise analysis
Slide 11: In 2019 we unveiled our 2023 strategy plan with four key strategic priorities
2023 Strategy and the Growing Opportunity In 2019 we unveiled our 2023 strategy plan which included four key strategic 2019 priorities 2023 key strategic priorities Evolve our strong cloud telephony position into the UCaaS market Build on our Fixed and Mobile Telecom strength to differentiate our pr
Slide 12: UCaaS market development creating adjacent opportunities across the technology stack
2023 Strategy and the Growing Opportunity We believed UCaaS market development would create new adjacent market 2019 opportunities for Gamma across the technology stack UCaaS technology stack UCaaS components 11% CAGR £3.3Bn 2023 £1.9Bn APIs 2018 • Word processing, Spreadsheets, Slide presentations
Slide 13: Microsoft Teams requires the Gamma Voice product to offer full UCaaS
2023 Strategy and the Growing Opportunity An example of this opportunity, Microsoft Teams requires the Gamma Voice product (SIP and/or Horizon) to offer a full UCaaS solution UCaaS technology stack MS Teams Full UCaaS APIs Office 4 suites Collaboration & 3 Conferencing Hosted PBX 2 (Call management)
Slide 14: Full connectivity wrap and CCaaS
2023 Strategy and the Growing Opportunity We believed a full connectivity wrap was a critical part of Unified Communications to deliver business quality experience and later added focus on Contact Centre The connectivity wrap and CCaaS UCaaS CCaaS APIs Office UCaaS suites UCaaS Collaboration & Confe
Slide 15: Gamma focuses on UCaaS, CCaaS and Connectivity
2023 Strategy and the Growing Opportunity Gamma focuses today in three key communication markets: UCaaS, CCaaS and Connectivity, bringing them together with its own SIP, Network & Cloud Platforms Gamma markets UCaaS CCaaS Unified Contact Centre Communications as a Service as a Service Network & Clou
Slide 16: Active markets have an attractive growth forecast, especially UCaaS
2023 Strategy and the Growing Opportunity Gamma’s active markets have an attractive growth forecast, especially UCaaS UK market and 2025 forecast • +8m Cloud communication seats • +220k Cloud contact centre seats (+100%) 19%CAGR UCaaS CCaaS (+50%) 7.8% CAGR • +3m PSTN lines migration Unified Contact
Slide 17: Major growth opportunity in Western Europe
2023 Strategy and the Growing Opportunity Through our extended reach and capabilities, we can now tap into a major growth opportunity in Western Europe Europe Cloud Communications market Europe Cloud Contact Centre market 103.7m 2.9m Total PBX seats Post COVID Total Agent Positions Forecast variatio
Slide 18: Market outlook will change again once the Pandemic is over
2023 Strategy and the Growing Opportunity We are aware that the market outlook will change again once the Pandemic is over Market outlook to 2026 PRE PANDEMIC COVID PANDEMIC POST PANDEMIC • Business have already • Emergence of the hybrid been operating at the extreme model, user and buyer 2023 Strat
Slide 19: M&A execution in line with 2023 Strategy
2023 Strategy and the Growing Opportunity Our M&A execution has was driven by the 2023 strategic priorities, adding new reach and capabilities to Gamma M&A execution in line with 2023 Strategy Digital UCaaS capabilities Netherlands Group Technology Group Technology Group Technology March 2020 Nov 20
Slide 20: Multiple growth drivers: segments, geographies, channels and products
2023 Strategy and the Growing Opportunity Our focus is on realising multiple, compelling growth drivers: Multiple business segments & geographies, served through several channels and product areas Business Segment Channel Proposition Direct Enterprise Field Sales Indirect Partner SME Channel Digital
Slide 21: Agenda
Introduction 01. Andrew Taylor Agenda 2023 Strategy and the Growing Opportunity 02. Andy Morris Market Segmentation and Product Portfolio Capital Markets Day 03. Chris Wade Wrap-up 10th June 2021 04. Andrew Taylor Q&A 05. Andrew Belshaw & Andrew Taylor
Slide 22: Product – Channel – Segment fit
Market Segmentation and Product Portfolio Product – Channel – Segment fit Business Segment Channel Proposition Direct Enterprise Field Sales Indirect Partner SME Channel Digital Micro Companies
Slide 23: We serve all UK B2B segments
Market Segmentation and Product Portfolio We serve all UK B2B segments. The needs of each segment are different Business market segments Market segment size Cloud PBX General market Gamma Typical penetration trends Share applications • Accelerated • Horizon move to cloud • SmartAgent • Often bespoke
Slide 24: We focus on solving key needs of our customers
Market Segmentation and Product Portfolio We focus on solving key needs of our customers Customer issues Customer needs Connectivity "I need..." Voice “…stable reliable connectivity” communication “…my customers to reach me easily and efficiently” Internal “…to reach out to my customers and supplier
Slide 25: So what are we doing to solve these problems?
Market Segmentation and Product Portfolio So what are we doing to solve these problems? Customer needs and Gamma’s offering Cloud Telephony Collaboration & Meetings Internal External SIP • Voice conferencing VoIP • Video conferencing conversations conversations • Internal calls • Messaging • PSTN ca
Slide 26: Criticality of each issue varies across business segments
Market Segmentation and Product Portfolio The criticality of each of those issues varies across business segments B2B customer issues criticality Process and External Internal Application Voice Connectivity Conversations Conversations Integration !!! !!! !!! !!! !!! Enterprise HIGH HIGH HIGH HIGH HI
Slide 27: Right channel for each customer segment
Market Segmentation and Product Portfolio We provide those solutions to each customer segment through the right channel, as our routes to market approach is driven by customer behaviour B2B customer channel Direct Indirect Direct digital Enterprise HIGH MEDIUM/LOW LOW SME MEDIUM HIGH MEDIUM Micro Co
Slide 28: Gamma has built a strong and comprehensive product portfolio
Market Segmentation and Product Portfolio Gamma has built a strong and comprehensive product portfolio to serve those markets Gamma’s product portfolio UCaaS CCaaS Unified Contact Centre Communications as a Service as a Service Network & Cloud Platform Connectivity Fixed & Mobile WAN WiFi Other Gamm
Slide 29: Micro Companies
Market Segmentation and Product Portfolio Micro Companies
Slide 30: The Micro segment: simpler needs, high volume
Market Segmentation and Product Portfolio Micro Companies The Micro segment is characterised by simpler needs, and high volume Micro companies 5.7m 1.5m 2.3m Businesses Cloud comm seats Mobile lines 96% of UK 25% of UK 20% of UK Enterprise 9.2m <0.01m 2.2m SME Employees Cloud contact centre Fixed ac
Slide 31: Problems we solve in the Micro market
Market Segmentation and Product Portfolio Micro Companies Problems we solve in the Micro market Customer needs and Gamma’s offering Internal External Cloud Telephony Conversation Management SIP Omni channel communications conversations conversations VoIP • Webchat, Social Media, Email, SMS • Interna
Slide 32: Modern day business communications
Modern day business communications
Slide 33: Delivery to market and how we win
Market Segmentation and Product Portfolio Micro Companies Delivery to market How we win • Leveraging existing indirect • Simplicity channels • Clarity • Increasingly digital-first • Flexibility and Optionality • Convergence of IT and • Aggregation and extensibility communications remains elusive • F
Slide 34: Competition and market change: PSTN switch off
Market Segmentation and Product Portfolio Micro Companies Competition Market change PSTN switch off • Existing single line providers targeting • 2025 - Withdrawal of core connectivity this space infrastructure • Regulatory barriers for new entrants • Creates Connectivity and Application remain high
Slide 35: Future direction: channels and capabilities
Market Segmentation and Product Portfolio Micro Companies Future direction Channels Capabilities • Expand digital channel coverage and • Wider range of conversation mechanisms capability • Wider range of integrations • Support new indirect models • Tighter bundling between connectivity and • Future
Slide 36: Small and Medium Enterprises
Market Segmentation and Product Portfolio Small and Medium Enterprises
Slide 37: SMEs need complete solutions that are easy to consume
Market Segmentation and Product Portfolio Small and Medium Enterprises SMEs need complete solutions that are easy to consume Small and Medium Enterprises 0.3m 2m 3.4m Businesses Cloud comm seats Mobile lines 4% of UK 30% of UK 30% of UK Enterprise SME 7.7m 0.20m 0.7m Employees Cloud contact Fixed ac
Slide 38: Problems we solve in the SME market
Market Segmentation and Product Portfolio Small and Medium Enterprises Problems we solve in the SME market Customer needs and Gamma’s offering Cloud Telephony Collaboration & Meetings Internal External SIP • Voice conferencing VoIP • Video conferencing conversations conversations • Internal calls •
Slide 39: The Cloud Contact Centre for Horizon
The Cloud Contact Centre for Horizon
Slide 40: Delivery to market and how we win
Market Segmentation and Product Portfolio Small and Medium Enterprises Delivery to market How we win • Leverage existing indirect channels • Simplicity of doing business remains key • Creates customer intimacy at scale • Clarity and flexibility of proposition • Communications still regarded as “scar
Slide 41: Competition and market change: Microsoft Teams
Market Segmentation and Product Portfolio Small and Medium Enterprises Competition Market change Microsoft Teams • Microsoft Teams emergence has • Many businesses have a Microsoft- changed the dynamics in the “internal driven IT strategy conversation” market • Creates a “drag-along” impact to pull •
Slide 42: Future direction: markets and capabilities
Market Segmentation and Product Portfolio Small and Medium Enterprises Future direction Markets Capabilities • Develop channel to continue to • Wider range of conversation capitalise on the transition to mechanisms cloud-based applications and • Wider range of integrations services • Supporting hybr
Slide 43: Enterprise and Public Sector
Market Segmentation and Product Portfolio Enterprise and Public Sector
Slide 44: Enterprise customers focussed on maximum impact
Market Segmentation and Product Portfolio Enterprise and Public Sector Enterprise customers are focussed on maximum impact for the solutions they use Enterprise and Public Sector 8k 2m 3.4m Businesses Cloud comm seats Mobile lines 1% of UK 30% of UK 30% of UK Enterprise SME 11m 0.29m 0.7m Employees
Slide 45: Problems we solve in the Enterprise and Public Sector market
Market Segmentation and Product Portfolio Enterprise and Public Sector Problems we solve in the Enterprise and Public Sector market Customer needs and Gamma’s offering Cloud Telephony Collaboration & Meetings Internal External SIP • Voice conferencing VoIP • Video conferencing conversations conversa
Slide 46: The Contact Centre reimagined
The Contact Centre reimagined
Slide 47: Delivery to market and how we win
Market Segmentation and Product Portfolio Enterprise and Public Sector Delivery to market How we win • Mixed model, driven by customer • Focus on the customer and their preference and behaviour need • Focus on service and delivery drives • Ability to combine core capabilities differentiation and del
Slide 48: Competition and market change: Global hyper-scalers
Market Segmentation and Product Portfolio Enterprise and Public Sector Competition Market change Global hyper-scalers • Application vendors increasingly • Amazon, Microsoft, RingCentral and competitive in this space other tech vendors increasingly targeting • Completeness of Gamma offer means this s
Slide 49: Future direction: markets and capabilities
Market Segmentation and Product Portfolio Enterprise and Public Sector Future direction Markets Capabilities • Evolving the capability to deliver • Ensuring that the whole portfolio more packaged solutions that continues to extend and expand support more efficient delivery (SD-WAN, Mobile, CX improv
Slide 50: Agenda
Introduction 01. Andrew Taylor Agenda 2023 Strategy and the Growing Opportunity 02. Andy Morris Market Segmentation and Product Portfolio Capital Markets Day 03. Chris Wade Wrap-up 10th June 2021 04. Andrew Taylor Q&A 05. Andrew Belshaw & Andrew Taylor
Slide 51: Wrap up
Capital Markets Day Wrap up Successfully executing against our 2023 growth We now address all segments of the business strategy – profile of our business has changed market (Micro, SME, Enterprise and Public Sector) with substantially after our acquisitions their cloud communication and connectivity
Slide 52: Q&A
Q&A • Join the Q&A session through the Microsoft Teams link • You can ask your question live • It will be 20 minutes facilitated by Andrew Belshaw
Slide 53: Thank you.
Thank you. Working smarter, together.