Gigas Hosting Sa · BME:GIGA
Gigas Hosting Sa — Gigas — Foro MEDCAP May 2020
24 slides from Gigas Hosting Sa's conference presentation, May 2020
Slide 1: Investors Presentation
Investors Presentation Foro MEDCAP MAY 2020 gigas.com 1
Slide 2: About Gigas
About Gigas Gigas is a cloud computing company that started to provide services in 2012, operating in the "Infrastructure as a Service" (IaaS) segment A sector with significant growth rates (over 25% per year in Spain and Latam, in the 2014-2018 period, according to Gartner), and consolidation oppor
Slide 3: Gigas at a glance
Gigas at a glance Employees Sector +100 “Infrastructure as a Service” (IaaS) Clients 8 Datacenters +3,500 Madrid, Barcelona, Lisbon, Port Miami, Bogota & Santiago de Chile Offices Listed in Madrid Mexico, USA, Colombia, Stock Exchange Peru, Chile, Panamá, Spain & Portugal GIGA 3
Slide 4: Gigas Growth Timeline
Gigas’ Gigas Growth Timeline Overview Leading provider of cloud computing services in the markets we operate 4
Slide 5: Gigas Growth Experience Team
Gigas Growth Experience Overview Team Lola Molins Alberto Fernández Cristian García MARKETING DIRECTOR SALES DIRECTOR FINANCIAL CONTROLLER 5
Slide 6: Shareholders and Board of Directors
Shareholders and Board of Directors 24.2% 60.6% 13.4% ** 100% of Gigas 4.3 million shares are listed on the Alternative Stock Market (MAB) in the Madrid Stock Exchange * Bonsai Venture Capital and Caixa Capital Risc ** 5 of those private investors have a seat in the Board of Directors Secretary: Pat
Slide 7: Award Winning Technology
Award Winning Technology st Proveedor de Servicios Cloud en Espafia 48) MsPmentor Global Edition, 2015 & 2016 Proveedor Destacado a Nivel Mundial 5 Gartner Cloud Infrastructure as a Service 2013, 14, 15, 17 & 18 Mejor Servicio laaS del Mercado “bei Eurocloud 2013 & 2014 Mejor Cloud Hoster Global The
Slide 8: Some Companies Hosted at Gigas
Some Companies Hosted atAbout Gigas Gigas 8
Slide 9: Infrastructure & Technology Partners
Infrastructure & Technology Partners Getting the cloud infrastructure as closest to the customer as possible is key for user experience, technical and regulatory reasons: • Own infrastructure in eight external datacenters, with the highest Security and Availability certifications (Tier III and Tier
Slide 10: Customer Figures
Customer Figures About Gigas • Cloud VPS customers reached 2,766 at the • Cloud Datacenter ARPU decreased in 2019 to end of Q1 2020, lower than the 3,083 a year €1,157/mo. (€1,224 in 2018) due mainly to loss earlier, but in line with Gigas’ strategy of of a few large contracts with a partner focusin
Slide 11: Revenues FY 2019
Revenues FY 2019 About Gigas • Gross revenues reached €11.85 million in 2019, 16.7% higher than in 2018, due mostly to organic growth and the AHP acquisition at the end of the year. Revenues in line with budget (0.1% higher) • Net revenues grew 17.8% to €10.23M, but ended the year slightly below bud
Slide 12: Revenues Q1 2020
Revenues Q1 2020 About Gigas • Gross revenues reached €3.20 million in Q1 2020, 5.4% higher than in Q1 2019. Net revenues reached €2.63M in Q1 2020, 6.3% higher than the €2.47M from Q1 2019 • Revenues lower than budgeted, significantly impacted by severe depreciation of currencies in LATAM (down 25-
Slide 13: EBITDA FY 2019
EBITDA FY 2019 About Gigas • FY 2019 EBITDA grew 54.9% in the last year, reaching €2.50M, due to organic growth, AHP contribution and cost efficiencies. • Final EBITDA for the year slightly higher than guidance provided (€2.4M) but still a bit below budget (1.9% lower than €2.55M budgeted) • A total
Slide 14: EBITDA Q1 2020
EBITDA Q1 2020 About Gigas • Q1 2020 EBITDA (before M&A and stock options) reached €0.67M in the quarter, 2.4% higher than the EBITDA from Q1 2019 • EBITDA in the quarter was slightly below budget, due mostly to the impact from currencies in LATAM. At constant currency rates, EBITDA would have been
Slide 15: 2019 Results Compared to 2018 and Budget
About 2019 Results Compared to 2018 Gigas and Budget CONSOLIDATED INCOME STATEMENT 2019 2018 Budget 2019 Figures in EUR JAN-DEC % JAN-DEC % JAN-DEC Gross sales 11,846,249 16.7% 10,155,158 0.1% 11,832,270 Accrued sales 73,291 -184.1% (87,111) 387.0% 15,050 Sales discounts and promotions (1,691,622) 2
Slide 16: Q1 2020 Results vs. Q1 2019 and vs. Budget
Q1 2020 Results vs. Q1 2019About Gigas and vs. Budget CONSOLIDATED INCOME STATEMENT 2020 2019 2020 budget Figures in EUR JAN-MAR JAN-MAR % Chg. JAN-MAR Gross sales 3.200.613 5,4% 3.036.615 (1,6%) 3.252.899 Accrued sales (125.410) (15,8%) (148.969) 51,2% (82.970) Sales discounts and promotions (444.1
Slide 17: 2020 Budget and Potential COVID-19 Impact
2020 Budget and Potential COVID-19 Impact • Due to COVID-19 crisis and currencies, we expect Q2 to be impacted negatively from discounts and subsidies offered to help customers, loss of some customers, bad debt and the already mentioned currency impact • We expect to see an improvement in Q3, and Q4
Slide 18: 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 19: 2019 Balance Sheet
2019 Balance Sheet • Intangible assets, Deferred tax liabilities and Receivables grew substantially linked to the AHP acquisition (and the other two acquisitions from 2018) • Investment in property, plant and equipment was €0.67M, €0.33M less than the previous year and also €0.35M short of the €1.02
Slide 20: CAPEX Evolution 2016-2019
CAPEX Evolution 2016-2019 • CAPEX to Sales ratio continues to improve, reaching 6.5% in 2019. CAPEX in Q1 2020 was 0.21M, representing about 8.0% of net revenues • Most CAPEX related to growing capacity for new customers, while maintenance or replacement CAPEX still very limited. • R&D works capital
Slide 21: 2019 Cashflow Statement
2019 Cashflow Statement Figures in Euros 2019 • The Company used €0.50M of cash for EARNINGS BEFORE TAXES 271,125 financial costs and taxes and €1.57M for repaying financial debt during 2019 Result Adjustments 2,155,445 Changes in accruals and bad debt 73,724 • New debt was raised for a total of D&A
Slide 22: Debt Evolution
Debt Evolution Net Financial Debt • Net Financial Debt / EBITDA increased Figures in Thousands slightly to 1.46x, 1.28x if adjusted EBITDA of Euros used • Gross debt increased substantially at the end of the year, due to the acquisition of AHP (adds a total of aprox. €2M) Figures in Euros 2019 2018
Slide 23: Share Evolution and Analysts' Reports
Share Evolution and Analysts’ Reports • Share remained fairly flat during 2019, ending at €6.82 at year end, a 4.9% increase during the year • Share Price hit by the COVID-19 impact on markets reaching a low of €4.15 in March, but recovering since then • Management believes share price will continue
Slide 24: Investor relations contact
Investor relations contact: investor@gigas.com accionista@gigas.com = gigas