Gigas Hosting Sa · BME:GIGA
Gigas Hosting Sa — H1 2021 Earnings Presentation
24 slides from Gigas Hosting Sa's earnings presentation, Sep 14, 2021
Slide 1: Investors' Presentation and H1 2021 Results
Moisés Israel Diego Cabezudo Javier Cañete Chairman CEO CFO Investors’ Presentation and H1 2021 Results SEPT 2021 1
Slide 2: Disclaimer
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 may i
Slide 3: Gigas' Timeline
Gigas’ Timeline OnMovil Acquisition Leading provider of cloud computing services in Spain, Portugal and Latam First Converged Telco&Cloud Operator in the Iberian Peninsula 3
Slide 4: The new B2B convergent paradigm
The new B2B convergent paradigm 1 Digital transformation of all 2 Cloud continues to grow, extending businesses beyond storage and computing • Increasing volume, quality and reliability • Cloud becoming the best performing and most demands as well as security efficient solution for IT infrastructure
Slide 5: The addressable opportunity
The addressable opportunity Europe LatAm The GIGAS opportunity 1 B2B size in Gigas’ footprint (companies with > 10 employees) Digital # of companies “+640 k target 221k 419k transformation clients in Gigas’ of all businesses geographies” # of branches/locations 592k 1.286k 2 B2B cloud market Cloud/I
Slide 6: Convergence through best-in-class acquisitions
Convergence through best-in-class acquisitions 2011 … 2018 2019 2020 2021 Cloud Cybersecurity BUSINESS UNIT Connectivity B2B PORTFOLIO Unified comms. B2B PORTFOLIO Approx. €64M revenues and Eight major deals in the last 4 years towards €14M EBITDA PROFORMA building a compelling convergent propositio
Slide 7: A B2B portfolio built for the digital era…
A B2B portfolio built for the digital era… Building a forward-looking ...unlocking significant value for portfolio... Gigas and its clients Current New services Cross-selling opportunities IaaS Hybrid and multi Cloud PaaS Cloud/security products SAPTM Cloud Cloud B2B PORTFOLIO Disaster recovery SD-W
Slide 8: …with a very simple but powerful user interface
…with a very simple but powerful user interface “Telcos have long realized the strategic importance of customer experience, yet translating this strategy into action and tangible experience for customers is long overdue. Telcos face increasing competition from in-market players, as well as OTT playe
Slide 9: Strategic positioning and size of Gigas vs. peers
Strategic positioning and size of Gigas vs. peers Revenues Unified Comms. (€M 2019/18, Geographies Cloud Connectivity Cybersecurity % 5yr-CAGR) Fixed Mobile 328 -3%2 ~ 169 16% 99 -5% (1) 64 28%3 2021 58 11% ~ 54 20% 49 5%2 21 9% 11 4%2 (4) 11 28%3 2020 Source: Arthur D. Little analysis Notes: (1) In
Slide 10: Trusted by more than 10,000 business customers
Trusted by more than 10,000 business customers 10
Slide 11: An experienced team with a successful track-record
An experienced team with a successful track-record MOISÉS ISRAEL, NON-EXECUTIVE CHAIRMAN. Since 1985, Moisés has held several executive positions at banks, including Citibank, Santander Investment and Merrill Lynch, and from 2000 to 2003 served as CEO of Ya.com, an internet service provider (ISP) th
Slide 12: Shareholders and Board of Directors
Shareholders and Board of Directors Management Team* 5.3% GAEA José Antonio Arribas (COO) Miguel Venâncio managed by Inveready Arantza Ezpeleta GAEA Inversión (Carlos Conti) Private 28.2% Francisco Investors 60.2% Arteche Alfonso Inveready Capital Cabezudo Co. (Sara Sanz) 6.3% J. Poza 100% of Gigas
Slide 13: H1 2021 Key Highlights
H1 2021 Key Highlights H1’21 net revenues reached €22.7M, 4.4x growth YoY and 17% higher than budgeted, due mainly to acquisitions and earlier consolidation of ONI Adj. EBITDA for the semester reached €5.5M, € twice as much as the entire 2020, up 338% YoY and 35% higher than €4.1M in the budget for
Slide 14: Revenues H1 and Q2 2021
Revenues H1 and Q2 2021 About Gigas • Net revenues grew to €22.7M in the first half of 2021, 4.4x higher than the €5.2M of same period last year, thanks mainly to the consolidation of ONI, customers acquired from MasMovil, and cybersecurity business unit acquired from ValoraData • Revenues in H1 wer
Slide 15: EBITDA H1 and Q2 2021
EBITDA H1 and Q2 2021 About Gigas • Adjusted (recurring) EBITDA reached €5.52M in the first half of the year, 338% higher than the €1.26M in the same period a year ago and 34.7% higher than the €4.10M budgeted due to recent acquisitions and earlier consolidation of ONI • M&A and ESOP costs amounted
Slide 16: H1 2021 Results Compared to H1 2020 and Budget
H1 2021 Results Compared to H1 2020 and Budget GIGAS GROUP CONSOLIDATED INCOME STATEMENT H1 2021 BUDGET 2021 Figures in EUR Q1 2021 Q2 2021 H1 2021 % Chg. H1 2020 % Chg. H1 2021B Net revenue 9,323,108 13,394,517 22,717,625 338.4% 5,181,445 16.8% 19,458,277 Cloud, IT and cybersecurity services 3,523,
Slide 17: 2021 Budget
2021 Budget • New strategy to offer converged telco/cloud/cybersecurity services, fueled by acquisitions, have changed the scale of the Company • With OnMovil acquisition, net revenues for 2021 are now estimated to be over €52M, almost 5x 2020 revenues and EBITDA expected to reach €12M, 13% higher t
Slide 18: OnMovil Acquisition
OnMovil Acquisition • Acquisition of Mobile Virtual Operator (MVNO) OnMovil closed on the 1st of September • OnMovil distributes mobile services through almost 200 small regional telco operators • Through those partners, OnMovil has achieved 85,000 mobile lines and positions Gigas as one of the larg
Slide 19: CAPEX Evolution 2016-2021
CAPEX Evolution 2016-2021 • CAPEX (excl. M&A and R&D) growing significantly this year, due to the new telco profile of Gigas and one-off integration and new product investments • Budget for the year is €10.30M (€0.65M in 2020), but €3.05M invested in H1 (€2.04M in Q2), 29.3% lower than budgeted and
Slide 20: NFD/EBITDA
Debt Evolution as of 30/JUN and 1/SEP 2021 • €60.5M invested in four acquisitions this year so far (€51.4M in H1’21): • ONI: €39.5M (€15.0M cash paid) • MM Customer Portfolio: €9M (€7.2M paid, rest in 12m) • ValoraData Bus. Unit: €2.38M (€1.7M paid, rest in 12m) • OnMovil: €9,1M (€5.46M paid, rest i
Slide 21: Share Evolution
Share Evolution • Share price rallied at the end of last year, as the market welcomed corporate transactions and new strategy, ending at €11.50, a 68.6% increase during the year • Large amount of new shares issued, with a total of 11.64 million shares, including recently issued shares (3.9M) to pay
Slide 22: Comparables
Comparables * * Country UK Italy UK UK Annual Revenues £393.8M €52.5M £111.9M £91.4M 2020 EBITDA 2020 £79.0M €18.3M £33.5M £18.1M (margin %) (20%) (35%) (30%) (20%) Enterprise Value £1,960M €726M £316M £228M (EV) EV/ Revenues 5.1 11.3 2.8 2.5 EV/ EBITDA 25.1 34.8 9.4 12.5 Net debt 2020 -£13M €72M £5
Slide 23: Q&A H1 2021 Results and Investors Presentation
Q&A H1 2021 Results and Investors Presentation Moisés Israel, Chairman Diego Cabezudo, CEO Javier Cañete, CFO 23
Slide 24: Investor relations contact
Investor relations contact: investor@gigas.com accionista@gigas.com = gigas 24