Vercom Sa · GPW:VRC
Vercom Sa — Investor Presentation (March 2022)
35 slides from Vercom Sa's investor presentation, Mar 25, 2022
Slide 1: Investor presentation FY 2021
| Investor presentation FY 2021 March 25, 2022
Slide 2: Today's presenters
: Today’s presenters Krzysztof Szyszka Tomasz Pakulski Robert Stasik CEO, Founder COO CFO Years in the industry >21 >13 >11 Years with Vercom >16 >13 >9 2
Slide 3: Operational Summary
: Operational Summary
Slide 4: Financial Results
: Financial Results Revenues Dynamics y/y PLN 179 m +53% Gross margin PLN 54 m +52% EBITDA* PLN 37 m +42% *EBITDA normalized for the impact of non-recurring costs related to acquisitions, the organization of a public offering : Scale beyond to sell shares and the valuation of the ESOP
Slide 5: Number of customers
: Number of customers Number of Customers Increase y/y 18 754 +7 377 +65% 18,754 11,377 2020 2021 : Scale beyond
Slide 6: Highlights of 2021
: Highlights of 2021 Successful IPO and debut on the Warsaw Stock Exchange • PLN 180mn of IPO proceeds to be spent on acquisitions • Strong interest in the offering - reduction in the retail tranche amounted to over 92%, • First day closing price c. 16% above the IPO price Acquisition of FreshMail -
Slide 7: Highlights of 2021
: Highlights of 2021 Distinction in the Digital Champions CEE ranking • Honoring Vercom as one of the digital leaders who are building the CEE economy Strengthening of the Supervisory Board • Kinga Stanisławska and Aleksander Duch joined the Supervisory Board • Contributing unique know-how and over
Slide 8: Highlights of 2021: Achievement of ESOP targets
: Highlights of 2021 Achievement of ESOP targets - normalized EBITDA (PLN, million) 75 60 45 37 31 2020 2021 2022 2023 2024 : Scale beyond
Slide 9: Dynamic growth of business scale
: Dynamic growth of business scale
Slide 10: Continuation of dynamic growth of business scale – revenues
: Continuation of dynamic growth of business scale – revenues Revenues (PLN million) +45% CAGR 2018-2021 179 117 78 59 2018 2019 2020 2021 10
Slide 11: Continuation of dynamic growth of business scale – gross margin
: Continuation of dynamic growth of business scale – gross margin Gross margin (PLN million) +50% CAGR 2018-2021 54 36 25 16 2018 2019 2020 2021 11
Slide 12: Increase in gross margin due to growing sales to existing and new customers
: Increase in gross margin due to growing sales to existing and new customers Gross margin (PLN million) Comment +52% Significant improvement in gross margin of 52% year-on-year The high growth rate is a result of: +1 p.p (i) acquisition of new customers 110% (ii) increase in turnover with existing
Slide 13: Increase in the number of customers
: Increase in the number of customers Number of customers (thousands) Komentarz +40% CAGR 2018-2021 Dynamic growth in the number of customers, by 65% compared to 2020 Growing interest from new industries, e.g. publishing, FMCG 18.8 Starting cooperation with another group of local champions such as,
Slide 14: Wide use of omnichannel communication
: Wide use of omnichannel communication 14
Slide 15: Reaching out to more customer groups
: Reaching out to more customer groups
Slide 16: Growing customer confidence
: Growing customer confidence 16
Slide 17: Multi-level diversification
: Multi-level diversification
Slide 18: Growing use of Vercom services in more sectors
: Growing use of Vercom services in more sectors Increased diversification of the customer portfolio structure A wide range of customers for all types of B2C activities Growing share of new segments: Publishing, 19,000 FMCG and Utilities clients Working with a wide range of customers increases stabi
Slide 19: Growing business diversification
: Growing business diversification Share of international sales Concentration of revenue among top10 clients +343% -30% 33% 23% 2020 2021 Concentration of gross margin among top10 clients 31% -60% 16% 15% 7% 6% 2019 2020 2021 2020 2021 19
Slide 20: High business profitability
: High business profitability
Slide 21: Room for further cost optimization
: Room for further cost optimization General administrative expenses (million PLN) Comment 2.4 One-off costs Significant share of non-recurring costs, 4.8 including PLN 2.1 million of non-cash expenses (ESOP and amortization of 2.0 1.6 20.3 intangible assets in M&A) 17.8 1) 13.0 9.5 9.5 11.1 The inc
Slide 22: Steadily growing EBITDA
: Steadily growing EBITDA EBITDA* (PLN million) Comment +55% CAGR 2018-2021 Dynamically growing EBITDA of 42% year- on-year 1) Achievement of ESOP targets for EBITDA 1) value Ability to generate significant cash flow despite the group's dynamic growth strategy 37 26 19 10 2018 2019 2020 2021 22 * EB
Slide 23: High cash generation capacity
: High cash generation capacity Conversion of EBITDA to cash flow (PLN million) 4) - 5.4 1) 3) 1) 1) - 5.0 1.3 - 1.4 1) 37.0 31.6 26.2 24.8 25.2 26.5 3) 2) EBITDA Tax 1) 1) R&D Leasing NWC change FCF 1) EBITDA adjusted in plus for valuation of the incentive program in the amount of PLN 1.8 million,
Slide 24: Unique business model
VERCOM : Unique business model
Slide 25: CPaaS Platform
: CPaaS Platform CPaaS: cloud-based communication platforms that enable companies to build and develop lasting relationships with their audiences across multiple communication channels. With CPaaS CPaaS E-MAIL SMS CPaaS Platform Without CPaaS Client PUSH Final recipient OTT 25
Slide 26: Dynamically growing market
: Dynamically growing market Global CPaaS market value (USD billion) Global reach of communication channels (millions of users)1) SMS 5,100 30% CAGR 26.0 Email 3,800 17.5 Web Push 3,700 12.8 9.9 Mobile Push 3,500 8.2 7.1 WhatsApp 2,000 Facebook Messenger 1,300 2020 2021 2022 2023 2024 2025 Viber 1,2
Slide 27: The key role of CPaaS services in B2C communication
: The key role of CPaaS services in B2C communication Continuation of the trend of shifting company-customer interaction from offline to online channels Last Utilities e-commerce Financial Telecoms FMCG Publishing Mile Purchase Payments Shipments Invoices Notifications Promotions Advertising „Dzięku
Slide 28: CPaaS Platform
: CPaaS Platform 28 28
Slide 29: Easy integration with other systems
: Easy integration with other systems Strong emphasis on selling services in a self-service model Quick integration with popular IT systems thanks to dedicated plug-ins High scalability of services allowing further growth without investment in additional resources CPaaS Platform The growing populari
Slide 30: Sources of competitive advantage for Vercom
: Sources of competitive advantage for Vercom High effectiveness of omnichannel communication High level of message deliverability All communication channels available in a single service Potential for significant reduction in unit costs on the customer side Possibility of full integration with the
Slide 31: Development strategy
: Development strategy
Slide 32: Development strategy
: Development strategy Customer Development Cross-selling services Increase in the scale of operations ✓ Expansion of cooperation from a single service ✓ Implementing an omnichannel strategy ✓ Increase business reach through acquisitions and to new business areas ✓ Increase in sales of high-margin s
Slide 33: Successful execution of strategy through selective acquisitions
: Successful execution of strategy through selective acquisitions 2020 2021 2021 Access to new markets Expansion of customer base New communication channel ▪ Czech SMS market leader with ▪ The leader of the Polish e-mail marketing ▪ Polish market leader in web push operations in Slovakia and Austria
Slide 34: Global ambitions
: Global ambitions CPaaS market value Global market 8 200 000 000 USD European market 1 173 000 000 USD CEE market 577 000 000 USD Source: Juniper Research 34
Slide 35: Thank you for your attention
: Thank you for your attention