Iomart Group PLC · LSE:IOM
Iomart — Investor Day (May 2021)
39 slides from Iomart's investor day presentation, May 2021
Slide 1: Capital Markets Day: Strategic Refresh
CAPITAL MARKETS DAY Strategic Refresh May 2021 iomart.com 1
Slide 2: Objectives of the Day
OBJECTIVES OF THE DAY 1. Present iomart’s medium to long term strategy 2. Provide our view on the market opportunity for iomart 3. Outline strategic focus areas 4. Explain how we will support these from a brand and operations perspective 5. Outline the financial plan and KPIs 6. Meet the iomart team
Slide 3: Introducing the Leadership Team
INTRODUCING THE LEADERSHIP TEAM CAPITAL MARKETS DAY 3
Slide 4: Agenda
AGENDA Content Person Role Introduction Ian Steele Chairman Strategic roadmap Reece Donovan CEO Q&A Reece Donovan Marketing Strategy Sharon Mars Leach CMO Operational model and customer service Neil Christie COO M&A re-fresh & evolving business model Scott Cunningham CFO Q&A Reece Donovan CMD 4 CEO
Slide 5: Introduction
INTRODUCTION In a year which will change many markets, responses will determine the winners The Board’s strategy refresh process had input from across the business We sought views of analysts and investors Industry specific consultants helped us assess the speed and direction of our changing
Slide 6: Overview of iomart
OVERVIEW OF IOMART iomart.com 6
Slide 7: Snapshot of the Business
SNAPSHOT OF THE BUSINESS 13 DATACENTRES LOCATED ACROSS THE UK, UK HEADQUARTERED PROVIDER OF CLOUD HOSTING LINKED BY 2000+ KMS OF PRIVATE NETWORK AND MANAGED SERVICES INFRASTRUCTURE, WITH OVER 25 POINTS OF PRESENCE GLOBALLY FOCUSED ON DIRECT SELLING TO THE UK £112M OF TURNOVER (FY21) WITH MARKET AND
Slide 8: Where We Are Today
WHERE WE ARE TODAY iomart.com 8
Slide 9: Evolution Summary To-Date
EVOLUTION SUMMARY TO-DATE Phase 1 Phase 2 Phase 3 Strong growth – 2007 to 2018 Plateau – 2018 to 2021 April 2021 onwards Market Market Build on our core Demand exceeding supply, limited competition UK dedicated server market growth slows Align to the market Public cloud becomes widely acce
Slide 10: External Market Review
EXTERNAL MARKET REVIEW CMD 10 CEO STRATEGIC ROADMAP
Slide 11: Connect, Secure, Scale
ASPIRATION Exceed £200m+ revenue within 5 years Be a leading secure hybrid cloud business - “iomart” Be a trusted business & service partner for our customers Expand our solution, service, skill and geographical reach CONNECT, SECURE, SCALE CMD 11 CEO STRATEGIC ROADMAP
Slide 12: Strategic Value Creation Roadmap
STRATEGIC VALUE CREATION ROADMAP Core Portfolio New Services Acquisitions Organic Growth & Geographies Grow existing base and target Hybrid, Security, Digital Workplace Expand customer base & skillsets Enterprise opportunities (Unified Comms) & Connectivity inorganically Run rate Revenue & EBITDA Pr
Slide 13: Hybrid Cloud
HYBRID CLOUD WHAT IS IT? MARKET INSIGHTS OPPORTUNITY CAGR Public cloud adoption growing 20-24 Hybrid cloud solutions allow customers 100% public cloud not desirable to gain value from deploying capabilities Customers want options 16.6% across a combination of on-premise, Avoid vendor lock-in
Slide 14: Security
SECURITY WHAT IS IT? MARKET INSIGHTS OPPORTUNITY CAGR Significant remote / hybrid working 20-24 The provision of security services Rapid deployment of new solutions covering monitoring, event detection Increase in ransomware attacks and resolution in order to help 9.7% Business ops cannot be
Slide 15: Connectivity
CONNECTIVITY WHAT IS IT? MARKET INSIGHTS CURRENT NETWORK Provision of bespoke networking Increase in remote / hybrid working between any UK location, utilising our Rural locations suffering existing network alongside our partners Poor user experience using apps and suppliers to deliver cost ef
Slide 16: Digital Workplace - Unified Comms
DIGITAL WORKPLACE - UNIFIED COMMS WHAT IS IT? MARKET INSIGHTS OPPORTUNITY Small market but important CAGR Demand for hybrid working 20-24 Provides the basis for organisations to Desire for richer, more diverse bring together multiple legacy systems comms into a single unified platform which 20
Slide 17: Reinforcing Our Value Proposition
REINFORCING OUR VALUE PROPOSITION Unified Comms Hybrid Cloud Connectivity Security CMD 17 CEO STRATEGIC ROADMAP
Slide 18: Organisation, Culture & Values
ORGANISATION, CULTURE & VALUES Our people are at the heart of what we do Align around our company values Deliver on results – be ambitious Embed learning into the way we work – be curious Care for our people, society and the environment One iomart CMD 18 CEO STRATEGIC ROADMAP
Slide 19: Strategic Pillars
STRATEGIC PILLARS GROW 1. New enterprise customer wins 2. No of customers taking new services 3. Successful bolt on acquisitions DELIVER ONE IOMART TEAM 1. Customer satisfaction powered by a flexible, learning and ambitious organisation 2. Technical roadmap 3. Partner relationships ENABLE 1. Consoli
Slide 20: What Has Been Done, What Is Next
WHAT HAS BEEN DONE, WHAT IS NEXT FY21 FY22 FY23 Connectivity & Unified Communications Rollout Transition & Close out FY21 Hybrid Prep Hybrid Service Rollout Security Maturation Security Expansion Sales, Operational and Organisational Improvements Brand Development Geographical Expansion Strategy Dev
Slide 21: Marketing Strategy
MARKETING STRATEGY Sharon Mars-Leach CMO iomart.com 21
Slide 22: Creating a Brand Strategy
CREATING A BRAND STRATEGY Why iomart exists How iomart behaves What iomart says How we make our customers and who we are and action we take and how we say it and people feel CMD 22 CMO - MARKETING STRATEGY
Slide 23: Our Approach
OUR APPROACH CMD 23 CMO - MARKETING STRATEGY
Slide 24: We make you unstoppable by enabling you to connect, secure and scale
we make you unstoppable by enabling you to connect, secure and scale anywhere, anytime. CMD 24 CMO - MARKETING STRATEGY
Slide 25: Across the Customer Journey
ACROSS THE CUSTOMER JOURNEY Customer is passive / not actively looking Customer is active / looking for product Customer is active / transacting with the Customer is mainly passive / has for product or unaware they need a and researching options (why, what and business to purchase their chosen produ
Slide 26: Brand Launch Timeline
BRAND LAUNCH TIMELINE H1 (FYE22) CMD 26 CMO - MARKETING STRATEGY
Slide 27: Operational Model and Customer Service
OPERATIONAL MODEL AND CUSTOMER SERVICE Neil Christie COO iomart.com 27
Slide 28: A Strong Foundation
A STRONG FOUNDATION Leaders in transformation Service accountability Trusted advisors for change Private connectivity Automated infrastructure Symbiotic security model Owned datacentre assets Owned fibre network 24/7 Service operations CMD COO - OPERATIONAL MODEL 28 AND CUSTOMER SERVICE
Slide 29: One iomart
ONE IOMART A suite of the underlying tooling is being harnessed to deliver the future product and service portfolio and deliver competitive advantages Automated infrastructure provisioning Turnkey cloud provisioning Highly automated specialist webhosting Devops tooling and Container Security CMD COO
Slide 30: Customer Journey
CUSTOMER JOURNEY Introduction of a service team to work across the business and put the customer experience at the heart of everything we do Sales Operations PLAN BUILD RUN Service CMD COO - OPERATIONAL MODEL 30 AND CUSTOMER SERVICE
Slide 31: M&A Refresh & Evolving Business Model
M&A REFRESH & EVOLVING BUSINESS MODEL Scott Cunningham CFO iomart.com 31
Slide 32: M&A: Historic
M&A: HISTORIC FY08 to FY21 M&A - Equity Deal Value (by area) M&A Execution 1.3 21 Acquisitions completed since April 2007. Total of £124m deal consideration 14.6 Funded from cash generation / revolver loan facility Mass Hosting M&A focussed on recurring revenue, “sticky” customer base, Self Ma
Slide 33: M&A: Future
M&A: FUTURE Hosting – Public Cloud Hosting – Managed Hosting/Cloud Broader-comms/IT players Telecoms & Networks Despite ongoing consolidation, the UK market place remains fragmented Future M&A to focus on acceleration of Group’s Organic growth. Recurring Cloud Platforms Shared Hosting Domain Nam
Slide 34: Revenue Portfolio
REVENUE PORTFOLIO Cloud Managed Services Self Managed Infrastructure Sub-Brand: none Revenue Portfolio Sub-Brand: Rapidswitch, Redstation, Dediserve, SimpleServers, Bytemark, Memset,Sonassi Professional Services Colocation & connectivity Managed Cloud Services Dedicated Servers BaaS, DRaaS
Slide 35: Cost Base: Shared Delivery Assets
COST BASE: SHARED DELIVERY ASSETS iomart Cost Base SHARED DELIVERY ASSETS: Recurring revenue streams make use of the datacentres, network infrastructure plus people resources People Cost DC & Equipment (incl. depn) Most recurring revenue streams will have core costs of: Licences • Datacentre inf
Slide 36: Financial KPI
FINANCIAL KPI TODAY MEDIUM TERM REVENUE £112m > £200m Speed & EBITDA % 37% More than 30% accuracy depends on M&A and timing PBT % 18% More than 15% AVERAGE FREE CASH FLOW AS 17 % More than 15% % OF REVENUE CFO M&A RE-FRESH; EVOLVING 36 BUSINESS MODEL; NEW KPIS
Slide 37: Summary
SUMMARY iomart.com 37
Slide 38: Summary & Conclusions
SUMMARY & CONCLUSIONS STRONG PLATFORM Our infrastructure platform is proven, reliable and highly resilient with a highly skilled team capable of managing complex customer propositions FANTASTIC CUSTOMER BASE We have a fantastic and diverse customer base across multiple verticals from SMB to corporat
Slide 39: Thank You
THANK YOU Any Questions? iomart retains full copyright ownership, rights and protection in all material contained in this document unless otherwise stated. No part of this document, in whole or in part, may be reproduced, stored, transmitted without prior written permission from the iomart Group PLC