Slide 1: Third Quarter 2018 Results Investors Presentation
Third Quarter 2018 Results Investors Presentation =e Diego Cabezudo NOVEMBER | 2018 } eed gigas
Slide 2: Disclaimer
gigas Disclaimer This document and the conference-call webcast (including the Q&A session) may contain forward-looking statements and information (hereinafter, the “Information”) relating to GIGAS HOSTING S.A. or GIGAS GROUP (hereinafter “Gigas”, the “Company“ or the “Gigas Group’). This Information
Slide 3: Leading provider of cloud computing services in Spanish-speaking markets
Leading provider of cloud computing services in Spanish-speaking markets
Slide 4: 9M 2018 Key Highlights
9M 2018 Key Highlights Growth continues strong, 9M18 revenues up 40,8% YoY through organic & inorganic growth EBITDA in 9M18 almost triple than the same period last year and reaches €0.53M in Q3 Cloud Datacenter customers continue growing in number and above all in ARPU Two companies acquired, SVT a
Slide 5: 2018 Budget
2018 Budget CONSOLIDATED GROUP BUDGET Figures in EUR at Q2 a3 a4 2018est % Chg. 2017 Customer revenue 2.188.015 2.222.952 2.391.316 2.541.191 9.293.474 31,8% 7.053.165 Accrued sales (18.965) 39.143 8.865 (59.557) (30.514) 17,1% (26.058) Sales discounts and promotions (288.006) (287.715) (305.554) (3
Slide 6: Revenues 9M18
Revenues 9M18 ° Revenues continue to grow strong, both due to organic growth and acquisitions ° SVT and Ability acquisitions contributing to higher than budgeted revenues, despite Ability only consolidating for a bit less than half of the period Gross Revenues Net Revenues 10 10 8 8 40.8% 6 6 42.6%
Slide 7: Revenues Q3
Revenues Q3 ° Growth Y-o-Y very significant in the quarter, due to the contribution of SVT and Ability, which bring in more than half of the growth in the period ° Large customer lost in June impacted results, since it would have added almost €50K in the quarter Gross Revenues Net Revenues 3 3 54.0%
Slide 8: EBITDA
EBITDA ° Much higher than budgeted EBITDA in the quarter, reaching €0.53M, due to Ability (not included in original budget) and cost efficiencies, including SVT synergies ° A total of €411K of non-recurring costs related to M&A and a extraordinary bad debt provision were accounted in the first half
Slide 9: 2018 YTD Results Compared to 2017 and Budget
2018 YTD Results Compared to 2017 and Budget CONSOLIDATED INCOME STATEMENT 2018 2018 2018 2018 2017 2018budget Figures in Euros JAN-MAR APR-JUN JUL-SEP JAN-SEP %Delta JAN-SEP %Delta JAN-SEP Customer revenue 2,134,305 2,475,065 2,550,951 7,160,321 40.8% 5,087,107 6.0% 6,752,283 Accrued sales 27,0 (61
Slide 10: Revenue Split per Product
Cloud Datacenter ° The Cloud Datacenter, aimed at medium and large corporates, with 89.3% of total ytd 2018 gross revs. is the focus of Gigas and continues to grow both in terms of customers and ARPU Revenue Split per Product Cloud VPs y 10.7% * Cloud Datacenter customers reached 714 at the end of t
Slide 11: Cloud VPS and ARPUs
Cloud VPS and ARPUs * The Cloud VPS segment is very price sensitive. gigas : Oe) Bm Gigas focuses only on high value customers and a trades growing customers for higher ARPU and margins, together with low acquisition costs * Cloud VPS customers reached 3,243 at the end of the Q3 (21 less than Q218 a
Slide 12: Datacenter Footprint
Datacenter Footprint * Two new datacenters added to the Gigas’ network, inherited from the SVT (datacenter in Barcelona, Spain) and the Ability (datacenter in Bogota, Colombia) acquisitions ° Getting the cloud infrastructure as closest to the customer as possible is key for technical and regulatory
Slide 13: Inorganic Growth
Inorganic Growth * The cloud and hosting market is dominated by 3-4 large players (c.50% of the market) whereas the other half is extremely fragmented. ° Gigas is exploiting the opportunity to acquire companies with good business customer bases which bring volume and significant synergies. * Two com
Slide 14: FY 2018 Guidance Update
FY 2018 Guidance Update Guidance provided in September, when releasing H1 results was to close 2018 with €9.8M in gross revenues and €8.5M in net revenues, higher than the €9.3M and €8.1M included in Budget The Company confirms such estimates and given the good performance of the past few months bel
Slide 15: Market Milestones
' + Market Milestones IPO three years ago, November 3 2015, at €3.25 per share, raising €412M Inorganic strategy starts in January 2018 €2.5M convertible bonds issued on April 2018 to finance acquisitions, subscribed by investor Inveready Share price up 101.5% since IPO Quarterly revenues up almost
Slide 16: Share Price Evolution
12 Month Share Price Evolution ° Share price developing very well: 156.9% up in the last 12 months and 93.8% up ytd * Second most liquid stock in MAB-EE in relative terms and fourth in absolute terms GIGA Share Price 12M A AN F 27 NOV “18 Loe ff “, p) 6.000 \/ 5.000 _ 4.000 P pw 3.000 000 Jan 12018
Slide 17: Q&A
Q&A Third Quarter 2018 Results Investors Presentation gigas Diego Cabezudo CEO
Slide 18: Investor relations contact
Investor relations contact: investor@gigas.com accionista@gigas.com — gigas