Slide 1: FY22 Full Year Results Presentation
For personal use only FY22 Full Year Results Presentation 25 August 2022 COMMS GROUP LIMITED (ASX: CCG) https://commsgroup.limited 1 This d ocum e nt ha s b e e n a p p rove d b y the B oa rd of C om m s G roup Ltd
Slide 2: Agenda
For personal use only Agenda Company Overview 3 Financial Highlights 9 Business Update and Highlights 15 Strategy and Outlook 20 Glossary 24 COMMS GROUP | 2
Slide 3: Company Overview
For personal use only Company Overview COMMS GROUP | 3
Slide 4: Comms Group at-a-glance
Comms Group at-a-glance For personal use only A leading B2B provider of cloud communications and managed IT & cloud services to businesses We service our customers via three key business units Voice Services We enhance Global business agility Telco service Specialist UCaaS Award-winning IT Data Serv
Slide 5: Key timeline of events
Key timeline of events For personal use only August 2020 • Expands global MS Teams calling network to China, Philippines, Tokyo, the US and August 2021 September 2021 March 2022 December 2020 Europe • Acquisition of SME telco • Partnership with • Partnership with • Acquisition of leading Vodafone Bu
Slide 6: Our products and services
Our products and services For personal use only A highly focused B2B service provider with a full ICT product suite and leading position as a global unified communications provider Voice services Data services Unified Comms Solutions Managed IT services (UCaaS) • Replace legacy ISDN/PABX lines • Hig
Slide 7: Comms Group global network
Comms Group global network For personal use only Comms Group is a leader in Microsoft Teams calling for global businesses. Extensive international network with in-depth Asia Pacific coverage and carrier relationships. Upgraded & expanded capacity of core Global voice network with 6 SuperPOP location
Slide 8: onPlatinum acquisition in Feb - leading managed IT services provider
onPlatinum acquisition in Feb 22 For personal use only - leading managed IT services provider In Feb 22, we acquired a Extends Comms Group’s Added $16m+ to total group leading provider of ICT1 product offering, broadening revenue services with a high-quality product set into the IT services customer
Slide 9: Financial Highlights
For personal use only Financial Highlights COMMS GROUP | 9
Slide 10: FY22 Key Results Summary
For personal use only FY22 Key Results Summary Broader, more diversified business with continued revenue & EBITDA growth in FY22 FY22 Revenue FY22 Underlying EBITDA1, 2 FY22 Gross Profit FY23 revenue FY23 underlying Up 64% Up 28% Up 68% target EBITDA target to $41.3m to $4.1m to $19.1m $50m+ $6m+ 1
Slide 11: Financial Performance FY22
For personal use only Financial Performance FY22 $M FY21 FY22 • Increase in operating revenues includes a full year’s operations of prior year acquisitions and acquisition of Switched On (Sep 21) and onPlatinum (Feb22). Operating Revenue 25.1 41.0 Annualised operating revenues now in excess of $50m.
Slide 12: Financial Performance Over Time
For personal use only Financial Performance Over Time Operating Revenue Gross Profit 20 19.1 41.0 40 68% 63% 15 30 25.1 23.7 11.4 11.1 19.1 10 9.0 20 16.1 6.9 9.4 4.4 10 5 17.3 8.0 9.7 9.0 4.6 4.5 0 0 FY20 FY21 FY22 FY20 FY21 FY22 1st Half 2nd Half 1st Half 2nd Half Operating Revenue by Business Uni
Slide 13: Cash Flow
For personal use only Cash Flow $M FY21 FY22 Underlying operating cashflows 1.9 3.4 Less: Payment of business acquisition, (1.0) (1.4) restructuring and integration expenses Net cash from operations 0.9 2.0 Plus: net proceeds from capital raisings 5.9 - Plus: proceeds from bank borrowings - 8.1 Less
Slide 14: Balance Sheet
For personal use only Balance Sheet Balance sheet Cash at bank Paid $18.6m for CBA term loan facility limit $10.0m, Carried forward continues to $2.9m at 30 Switched On and drawn to $8.1m at 30 June 2022. tax losses of strengthen, net June onPlatinum. Preliminary covenant testing $2.0m with a tax as
Slide 15: Business Update & Highlights
For personal use only Business Update & Highlights COMMS GROUP | 15
Slide 16: FY22 Overall Business Highlights
For personal use only FY22 Overall Business Highlights Key • Two key acquisitions completed in FY22 – Switched On and key ICT provider onPlatinum. acquisitions • Business is now over $50m annualised revenue with significant scale and diversification and extensive & greater product and service offeri
Slide 17: FY22 Business Highlights (cont.) - SME Business Unit
For personal use only FY22 Business Highlights (cont.) SME • A leading domestic SME/Corporate mid-market Telco incorporating all of our SME businesses Business (including Comms Choice SME, Binary, Switched On) Unit • Key operations NSW, Vic & Qld and looking to expand into other states where opportu
Slide 18: FY22 Business Highlights (cont.) - ICT Business Unit
For personal use only FY22 Business Highlights (cont.) • A leading IT Managed Service Provider supporting corporate customers' ICT needs, with key ICT offices in the Gold Coast Qld and Sydney Business Unit • Currently working through an earn-out based on quarter ending Dec-22 • Customers typically c
Slide 19: FY22 Business Highlights (cont.) - Global Business Unit
For personal use only FY22 Business Highlights (cont.) Global • Global UCaaS and CPaaS business established as a separate division in FY22. Business Unit • Major work underway to add core UCaaS service ordering and management platform for customers, inc. MS Teams Operator Connect and other UCaaS pro
Slide 20: Strategy & Outlook
For personal use only Strategy & Outlook COMMS GROUP | 20
Slide 21: Comms Group strategic imperatives
Comms Group strategic imperatives For personal use only S T R Extend our services in Become a key UCaaS Grow to scale A and CPaaS provider Expand domestically the corporate mid- organically and via T throughout APAC to become a national market sector with a acquisitions to over provider E full ICT s
Slide 22: Outlook
For personal use only Outlook We expect to FY23 Revenue is Expect growth FY23 Underlying also continue to expected to be across all 3 EBITDA is expected grow via business units in to be strategic $50m+ the Group in FY23 acquisitions as $6m+ appropriate M&A opportunities arise. “We are singularly foc
Slide 23: Disclaimer
For personal use only Disclaimer The material in this presentation is a summary of Comms Group Ltd’s (CCG) activities and results, and is current at the date of preparation, 25 August Due care and consideration should be undertaken when considering and 2022. Further details are provided in the Compa
Slide 24: Glossary
Glossary For personal use only Term Definition Cloud Communications The provision of key communications services from cloud servers based in data centres with services delivered over high-speed internet connections. Cloud PBX, Cloud Phone, A cloud PBX functions the same as an in office PABX but is h
Slide 25: For personal use only
For personal use only COMMS GROUP LIMITED (ASX: CCG) This document has been approved by the Board of Directors