Slide 1: Gamma 2021 Final Results
Gamma 2021 Final Results Andrew Taylor, CEO Andrew Belshaw, CFO Working smarter, together.
Slide 2: Agenda
FY 2021 Business Update 01. Andrew Taylor 2021 Final Results 02. FY 2021 Financial Highlights Andrew Belshaw Strategic Plan Update Agenda 03. Andrew Taylor ESG 04 Andrew Belshaw Business Outlook 05. Andrew Taylor Q&A 06. Andrew Taylor & Andrew Belshaw
Slide 3: FY 2021 Business Update
Gamma 2021 Final Results FY 2021 Business Update Andrew Taylor CEO
Slide 4: 2021 – FY Business Highlights
Gamma 2021 Final Results 2021 – FY Business Highlights • Excellent financial performance with very high levels of recurring revenue and margin - reinforced by a robust business model and focused execution of our operational & strategic objectives • Business units performing very well with excellent
Slide 5: FY 2021 Business Update – Business Units
Gamma 2021 Final Results FY 2021 Business Update – Business Units Gamma Group UK Indirect UK Direct Europe Up to Up to Up to Up to £447.7m £270.2m £104.8m £72.7m +14% growth +9% growth +7% growth +50% growth Gamma Group revenue 60% of Group revenue 24% of Group revenue 16% of Group revenue • Positiv
Slide 6: FY Business Update – UCaaS Product Performance
Gamma 2021 Final Results FY Business Update – UCaaS Product Performance UK Cloud UK Collaboration European Cloud Up Up Up 15.0% 36% 12.6% to 743k cloud seats to 63k seats to 128k cloud seats UK SIP UK MSTDR Other Products Up Up Collaborate: 20% attachment 20.7% 91k CircleLoop: 10k seats Contac
Slide 7: Market Drivers – reinforcing growth trends
Gamma 2021 Final Results Market Drivers – reinforcing growth trends COVID drivers which accelerated growth have solidified into long-term sustainable trends User and Hybrid working Connectivity powering Customer Experience is here to stay the economy • Consumers increasingly valuing the • The new no
Slide 8: Core Gamma Foundations – Why we win?
Gamma 2021 Final Results Core Gamma Foundations – Why we win? Product Network Quality Digital Platforms Commercial Agility People Driving innovation through Supported by strong Ensuring all partners and Highly flexible and easy Gamma People and a strong & complete end- Carrier grade network customer
Slide 9: Our Customers and Industry Recognition
Gamma 2021 Final Results Our Customers and Industry Recognition Notable Wins 2021 Awards 2021 Direct Indirect Europe
Slide 10: FY 2021 Financial Highlights
Gamma 2021 Final Results FY 2021 Financial Highlights Andrew Belshaw CFO
Slide 11: 2021 Financial Highlights – Strong growth
Gamma 2021 Final Results 2021 Financial Highlights – Strong growth Revenue Adjusted EBITDA Adjusted EPS Up Up Up 14% 21% 25% to £447.7m to £95.4m to 64.0p Cash generated by operations Dividend Cash balance Up Up 28% 13% £52.8m to £89.8m to 13.2p As at 31 December (net funds of £49.5m)
Slide 12: Income Statement
Growth Years ended 31 December (£m) 2019 2020 2021 21 vs 20 Gamma 2021 Final Results Revenue 328.9 393.8 447.7 13.7% Income Statement Cost of sales -162.4 -193.0 -219.2 Gross profit 166.5 200.8 228.5 13.8% • Recurring revenue at 89% - effect of acquisitions Gross profit margin 50.6% 51.0% 51.0% Oper
Slide 13: Indirect
Gamma 2021 Final Results Revenue (£m) 300.0 Indirect 250.0 200.0 150.0 • Growth entirely organic – revenue grew by 9% 100.0 • Strong H2 50.0 • Underlying recurring growth business 0.0 2019 2020 2021 increasing led by SIP and Cloud PBX • “Revenues taken over time” at 93.5% Gross Profit (£m) 160.0 • T
Slide 14: Direct
Gamma 2021 Final Results Revenue (£m) 120.0 Direct 100.0 80.0 • Direct business driven by strong Enterprise 60.0 and Public Sector performance 40.0 • Mission Labs included herein but not material 20.0 • Loop included in 2019 and 2020; not 2021 0.0 2019 2020 2021 • COVID effect: Gross Profit (£m) – L
Slide 15: European
Revenue (£m) Gamma 2021 Final Results 80 70 European 60 50 40 • Growth is largely inorganic: 30 – Acquisitions in 2020 were Voz (ES) in April, HFO (DE) 20 and gnTel (NL) in July; Full Year in 2021 10 • Revenue in H1 - £35.4m; H2 - £37.3m 0 2019 2020 2021 • Trading EBITDA of £9.4m - £5.3m in H2 (6% o
Slide 16: European Revenue
Gamma 2021 Final Results European Revenue H2 2020 H1 2021 H2 2021 H2 20 vs H2 21 €m €m €m • Europe bills traffic separately to seat UCaaS NL 4.3 4.5 4.0 -7% revenue; UK bundles – more fluctuation in ES 5.0 5.5 5.4 8% revenues DE 6.0 7.0 7.2 20% Sub-total 15.3 17.0 16.6 9% • Traffic volumes high in H
Slide 17: Balance sheet
Balance Sheet as at Gamma 2021 Final Results 31 December (£m) 2019 2020 2021 Balance sheet Non-current assets (incl. PPE) 98.9 163.6 197.6 Receivables and inventories 85.6 104.4 111.4 Cash 53.9 53.9 52.8 • Strong cash reserves - £52.8m Current assets 139.5 158.3 164.2 Total assets 238.4 321.9 361.8
Slide 18: Cashflow
Gamma 2021 Final Results Cashflow • Cash conversion increased to 94% Cash Flow Statement (£m) Year to 31 December 2019 2020 2021 Adj EBITDA 63.5 79.0 95.4 • Guiding cash conversion to 85-90% (was 80-85%) Net Cash inflow from Operations 54.0 70.3 89.8 (pre-tax) • Taxation has decreased as guided - ca
Slide 19: Strategic Plan update
Gamma 2021 Final Results Gamma 2023 Strategic Plan update Andrew Taylor CEO
Slide 20: 2023 strategic priorities continue to drive execution…
Gamma 2021 Final Results 2023 strategic priorities continue to drive execution… Evolve our strong cloud telephony position into the UCaaS market Expand to Europe to gain continued growth and scale Continue to build on our digital capabilities to assure agility and sustain competitiveness Build on ou
Slide 21: …And are evolving to wider 2026 strategic priorities
Gamma 2021 Final Results …And are evolving to wider 2026 strategic priorities Build a strong Focus on the Transition our Create an and sustainable customer and existing customers organisation that position in the strengthen / to our full engages all our UCaaS & CCaaS broaden our UCaaS & CCaaS people
Slide 22: Gamma strategic strengths
Gamma 2021 Final Results Gamma strategic strengths Adding software platform capability to existing network strengths “Empower people to “To provide straightforward communicate and work cloud communication smarter, together” and collaboration services for business, underpinned by a robust, secure net
Slide 23: Addressing all key business market segments
Gamma 2021 Final Results Addressing all key business market segments Business Segment Channel Propositions Direct Field Sales UCaaS CCaaS Enterprise Unified Contact Centre Communications as a Service as a Service Network Indirect & Cloud Partner Platform SME Channel Connectivity Fixed & Mobile Digit
Slide 24: Multi-market Product Launches – excellent progress
Gamma 2021 Final Results Multi-market Product Launches – excellent progress Horizon MS Teams Microsoft Operator Collaboration 2.0 Horizon Contact PhoneLine+ Gamma Mobile Integration Connect - UK Evolution February 2021 May 2021 May 2021 July 2021 October 2021 March 2022 Provides SMEs Contact Modern
Slide 25: 2022 roadmap - extending current and future capabilities
Gamma 2021 Final Results 2022 roadmap - extending current and future capabilities Microsoft Operator Telsis CCaaS Circle Loop Horizon Contact PhoneLine+ Gamma Mobile in DE and NL Connect - NL in Spain Q2 2022 Summer 2022 H1 / H2 2022 Q3 2022 Q4 2022 Continuous Launch of Operator Upgrade and expansio
Slide 26: ESG
Gamma 2021 Final Results ESG Andrew Belshaw CFO
Slide 27: ESG – commitment to supporting our world
Gamma 2021 Final Results ESG – commitment to supporting our world Environmental Social Governance • Our products enable our customers to reduce • Gamma is pleased to report a 68% CSAT • Apply QCA Code their own emissions rating in 2021 (2020: 69%) • Business has always sought to achieve levels • Gam
Slide 28: Business Outlook
Gamma 2021 Final Results Business Outlook Andrew Taylor CEO
Slide 29: Business Outlook
Gamma 2021 Final Results Business Outlook Robust business model with strong recurring Positive long-term market outlook, with the future revenue & margin, and very good visibility of our adoption of cloud services forecast to continue numbers through FY 2022 and beyond across all markets and busines
Slide 30: Q&A
Gamma 2021 Final Results Q&A
Slide 31: Thank you.
Thank you. Working smarter, together.
Slide 32: Appendix
Appendix Working smarter, together.
Slide 33: Investment Highlights
Gamma 2021 Final Results Gamma Investment Highlights Attractive Target Market Strong Business Model At the early stage of the growth cycle with increasing levels of Recurring subscription revenue and margin, with high visibility cloud adoption across all markets and business segments and quality of
Slide 34: Enabling all existing and emerging voice delivery models
Gamma 2021 Final Results Enabling all existing and emerging voice delivery models Gamma can “win” multiple different ways “If we can’t get the application, we will provide the associated infrastructure” Gamma UC Enable UC
Slide 35: MST - voice enablement of Teams via multiple routes
Gamma 2021 Final Results Gamma MST - voice enablement of Teams via multiple routes Only 10% of Teams users have voice enabled which represents a significant opportunity