Slide 1: Gamma Half Year 2024 Results
Gamma Half Year 2024 Results 10 September 2024 Andrew Belshaw, CEO Bill Castell, CFO #GoodTogether
Slide 2: HY 2024 Results Agenda
HY 2024 Business Update 01. Andrew Belshaw HY 2024 Financial Highlights HY 2024 Results 02. Bill Castell Update on Strategy and Market Trends Agenda 03. Andrew Belshaw ESG Update 04. Andrew Belshaw Business Outlook 05. Andrew Belshaw Q&A 06. Andrew Belshaw and Bill Castell 2
Slide 3: Half Year 2024 Business Update
Half Year 2024 Business Update Andrew Belshaw, CEO
Slide 4: Business Highlights
Half Year 2024 Business Update Business Highlights • Organic growth in all Business Units o Growing product portfolio and high levels of customer service o Continued investment in research and development o Rebuilding our existing suite of portals • Acquisitions delivering well and supporting Group
Slide 5: H1 2024 Business Update
H1 2024 Business Update Gamma Group Business Enterprise Europe £282.5m £184.1m £61.0m £37.4m +10% growth +12% growth +15% growth -3%* growth Gamma Group revenue 65% of Group revenue 22% of Group revenue 13% of Group revenue o High levels of recurring revenue and margin in Gamma Business o Strong sta
Slide 6: Half Year 2024 Financial Highlights
Half Year 2024 Financial Highlights Bill Castell, CFO
Slide 7: H1 2024 Financial Highlights
H1 2024 Financial Highlights Revenue Adjusted EBITDA Adjusted EPS Up Up Up 10% 10% 16%* to £282.5m to £62.2m to 42.5p Cash generated by operations Cash Balance Dividend £142.9m Up Up 4% As of 31 Dec 14% to £59.6m cash of £136.5m to 6.5p *13% adjusted EPS growth at actual tax rates. 16% when adjustin
Slide 8: Income Statement
Income Statement Six months ended Year ended 30 June 30 June 31 December Half on half £m 2024 2023 2023 Growth Revenue 282.5 256.2 521.7 10% • Recurring revenue grew to £252.7m, Cost of sales (136.7) (125.0) (254.5) 89% of total revenue (2023: 90%) Gross profit 145.8 131.2 267.2 11% Gross profit mar
Slide 9: Gamma Business
YoY growth: +10% +12% Gamma Business Organic growth: +10% +6% 184.1 164.8 Revenue (£m) 150.4 • Healthy 12% growth in revenue, supported by our recent M&A – Pragma Group (EnableX), acquired in December 2023, has been successfully integrated and contributed £7.5m of revenue and £2.9m gross profit in H
Slide 10: Gamma Enterprise
YoY growth: +9% +15% Gamma Enterprise Organic growth: +9% +5% 61.0 53.0 48.7 • Delivered 15% revenue growth, driven Revenue (£m) by key contract wins and M&A – Satisnet Ltd, acquired in August 2023, has been successfully integrated and contributed £5.5m of revenue and £2.1m gross profit in H1 H1 202
Slide 11: Europe
YoY growth: +8% -3% Europe Constant Currency growth: +4% 38.4 0% 35.6 37.4 • Revenue growth of -3% (0% at constant currency) Revenue (£m) – Good progress in higher margin products (UCaaS & SIP), offset by a reduction in low margin Germany Mobile SIM revenue (Epsilon) as well as low margin hardware s
Slide 12: Investment
Investment Development costs • Overall development spend decreased by £0.8m due to cost savings from the restructuring announced in 2023 Overheads £m 2024 2023 Variance • Increased by 12% to £83.6m (2023 £74.7m), Expensed 10.7 8.4 2.3 compared to a gross profit growth of 11% Capitalised 4.7 7.8 (3.1
Slide 13: Balance Sheet
Six months ended Year ended Balance Sheet as at 30 June 30 June 31 December (£m) 2024 2023 2023 Balance Sheet Non-current assets (incl. PPE) 218.7 180.0 214.3 Receivables and inventories 134.9 122.0 124.0 Cash 142.9 123.5 136.5 • Strong cash reserves – £142.9m Current assets 277.8 245.5 260.5 Total
Slide 14: Cashflow
Cashflow Cash Flow Statement (£m) H1 2024 H1 2023 Growth • Adjusted cash conversion of 100% Adjusted EBITDA 62.2 56.5 10% Cash generated by operations 59.6 57.1 4% • Taxes paid increase due to growth in PBT, impact Add back: Cash impact of exceptional items 2.2 - of the increase in UK tax rate and t
Slide 15: Analyst Modelling Guidance
Analyst Modelling Guidance Overall expectations for the full year 2024: • Adjusted EBITDA within the top half of the company compiled consensus range* (range £120.9m – £127.4m; mid-point £124.2m) • Adjusted EPS at the top end of the company compiled consensus range* (range 78.4p – 84.0p) • Capex exp
Slide 16: Update on Strategy and Market Trends
Update on Strategy and Market Trends Andrew Belshaw, CEO
Slide 17: Gamma's Growth Drivers
Gamma’s Growth Drivers 1 2 Customers are requiring more complex communications solutions which we are now German cloud market is still underpenetrated able to address due to our broad suite of and the strength of our German organisation will solutions. Additional capabilities have been be enhanced b
Slide 18: Gamma's Unique Position
Gamma’s Unique Position Carrier Capability Key for voice enablement Local Global tech giants and distribution large partners reach Quality of service Portal Evolution 18
Slide 19: Analysis of other Providers
Gamma’s UCaaS Portfolio: Gamma Connect Analysis of other Providers Enterprise SME iPECS Centile Horizon Flex PL+ Micro Companies Microsoft Teams 19
Slide 20: Gamma's 2026 strategic priorities are being realised through our acquisitions
Gamma’s 2026 strategic priorities are being realised through our acquisitions We will develop a We will develop We will become a We will create an common multiple routes to trusted partner to organisation that European product the market in each Enterprises across engages all our set for UCaaS and c
Slide 21: Previously reported acquisitions
Previously reported acquisitions • August 2023 • December 2023 • February 2024 • Leading provider of cyber • Relationship with Ericsson-LG • International SMS and voice security services and • Access to Ericsson-LG's UCaaS services provider solutions to businesses solution, iPECS • Allow us to provi
Slide 22: Acquisition of BrightCloud – CX Capability
Acquisition of BrightCloud – CX Capability • Experts in Cisco Customer Experience ("CX") and CCaaS • Next Gen Communications MSP • Direct and Indirect customers • Leading brand in Enterprise • Increasing Managed Services and • Leader in MS Teams and OC therefore recurring revenues • Direct and Indir
Slide 23: Acquisition of Placetel – German reach
Acquisition of Placetel – German reach • Large UCaaS base – over 260,000 seats • Strong relationship with Cisco • Digital platform selling Cisco • Cisco Collaboration identified as a strategic Collaboration Suite UCaaS product • Strong German brand • Large dealer base – complementary to • Large deal
Slide 24: ESG Update
ESG Update Andrew Belshaw, CEO
Slide 25: Communications with a Conscience
Communications with a Conscience Environmental Social Governance • Targeting Carbon net-zero in • Launched Gamma • Board is considering a move to 2042 for Scope 1, 2 & 3. Targets Scholarship Programme, the Main Market approved by SBTi supporting STEM students at • Re-certified against our existing •
Slide 26: Business Outlook
Business Outlook Andrew Belshaw, CEO
Slide 27: Business Outlook
Business Outlook Robust business model with strong recurring Investment in portal will improve customer revenue and margin, high cash conversion experience and allow us to add additional and with strong balance sheet capabilities more easily in future Recent acquisitions have been immediately Cloud
Slide 28: Q&A
Q&A Andrew Belshaw, CEO Bill Castell, CFO
Slide 29: Thank you.
Thank you. #GoodTogether
Slide 30: Appendix
Appendix
Slide 31: Cloud PBX & Contact
Cloud PBX & Contact UK UK Up to Up to 1,002k 40k +5% growth +33% growth Number of Cloud PBX seats Number of CC-enabled seats Germany Other Europe Europe Up to Down to Up to 38k 123k 4k +12% growth -3% growth +0% growth Number of Cloud PBX seats Number of Cloud PBX seats Number of CC-enabled seats 31
Slide 32: SIP
SIP UK UK UK Down to Up to Up to 968k 451k 457k -5% reduction +13% growth +7% growth SIP Trunks SIP Trunks Voice enabled MS Teams users enabling traditional hardware PBX enabling a non-Gamma Cloud PBX (Operator Connect or Direct Routing) Europe Europe Europe Up to Up to 204k n/a 12k +3% growth +33%