Slide 1: Half Year Results September 2022
f oO redcentric Half Year Results September 2022
Slide 2: Agenda
Agenda Introductions Summary & outlook Market overview Company overview, proposition and ESG commitment redcentric 2
Slide 3: Operational review
PUBLIC Operational review Peter Brotherton — Chief Executive Officer redcentric AGILE © AVAILABLE » ASSURED
Slide 4: Operational highlights
Operational highlights Excellent progress made executing the strategic growth plan e New four-bank syndicate facility signed in Apr-22, with £80m committed funds and a further £20m accordion at competitive interest rates. ¢ Three further acquisitions made in the period at an initial cash cost of £23
Slide 5: Further progress against acquisition strategy
Further progress against acquisition strategy Significantly enhanced service capability Transformational scale acquisitions e — The acquisition of Sungard Consulting was completed on 7 June 2022 ¢ — The acquisition of Sungard DCs and 4D Data Centres Ltd have added for a cash consideration of £4.2m,
Slide 6: Divisional operating model
Cloud Services Cloud offering significantly strengthened through acquisitions. Solutions range from colocation to hybrid and public cloud services. IT modernisation, digital transformation, and Dev-Ops skills complete Cloud Services portfolio. Annualised recurring revenue contribution 55% Divisional
Slide 7: Integration of acquired businesses
PUBLI Integration of acquired businesses Integration and syn savings update * The Sungard Consulting acquisition has been fully integrated into the Redcentric Cyber Security division. Given that this was a capability acquisition, synergy cost savings have been limited. * The 4D acquisition has large
Slide 8: Integration of acquired businesses: energy efficiency measures
Integration of acquired businesses Energy efficiency measures + As part of the Sungard DCs and 4D acquisitions five leased data centre facilities were acquired, four of which are own managed facilities: * The acquired 4D data centres both have good energy efficiency measures in place in line with th
Slide 9: Organic sales growth
PUBLI Organic sales growth Enhanced sales team, enlarged customer base and wider product offerings + After an initial surge in demand for remote working solutions, the period post the outbreak of the COVID-19 pandemic resulted in a dearth of large-scale IT projects and sales levels declined to c.60%
Slide 10: Financial review
PUBLIC Financial review David Senior — Chief Financial Officer redcentric AGILE © AVAILABLE » ASSURED
Slide 11: Group income statement
44.3 Group income statement Revenue 415 49.0 45.2 39% Cost of Sales (31) at) tt) 8% Gross Profit 43.5 31.9 27.6 29.3 57% Gross Margin 10.6% 69.1% 62.4% 64.9% 8.3% Operating Costs G1). 158) 17.0) 101% Adjusted EBITDA V7 11.9 11.9 12.3 1% EBITDA Margin 19.0% 24.2% 26.8% 27.3% 7.7% oF veciavon Property
Slide 12: H1-23 cash flow and net debt movement
H1-23 P P d d fm Adjusted EBITDA 117 23.7 24.6 Worcing Capital movements 5) G9 19 Cash Generated from operations 2.2 19.8 265 ital expenditure — cash purchases (15) @2 (29) Capital exsenditure — finance lease purchases - (2.2) Proceeds from sale and leaseback off assets - 1.0 Capital Expenditure (15
Slide 13: Strong balance sheet maintained
Strong balance sheet maintained * The net asset position is broadly in line with the prior period. Balance sheet Net debt analysis + The increase in intangible assets reflects the acquired intangible assets and goodwill in relation to Sungard consulting, Sungard DCs and 4D. H1 FY t £'m £ £m Intangib
Slide 14: Financial performance — revenue and profitability
Financial performance — revenue and profitability Adjusted operating costs Adjusted EBITDA Adjusted EBITDA ess capex £61.5m (+39%) £31.8m (+>100%) £11.7m (-1.3%) £10.2m (+2.1%) Recurring revenue of £56.4m Operating cost increase reflects Adjusted EBITDA margin of 19% Capex reduced marginally to (+43
Slide 15: Financial performance — liquidity & earnings
Financial performance — liquidity & earnings Normalised net cash / (debt) Adjusted act deter Trade debtors Adjusted earnings movement per share £-0.6m (-£8.7m) £39.3m (+37.8m) £16.6m (+>100%) 1.83p (-52%) Includes a working capital Increase due to: Increase in debtors reflects the Decrease in adjust
Slide 16: Dividend policy and share buyback
Dividend policy and share buyback * The Board has reviewed the financial performance of the business and has decided to maintain an interim dividend of 1.2p per share. * As noted at the time of the full year results, the Board will continue to review its policies in relation to dividends and share b
Slide 17: Finance facility update
Finance facility update Newly secured finance facility to support Redcentric in its next phase of growth * In Apr-22, Redcentric completed and significantly increased the New four bank syndicate refinancing of its Group debt facilities to support the growth strategy, including acquisition activity.
Slide 18: Summary & outlook
PUBLIC Summary & outlook Peter Brotherton — Chief Executive Officer redcentric AGILE © AVAILABLE » ASSURED
Slide 19: Summary and outlook
Summary and outlook Summary Excellent progress has been made in executing our strategic growth objectives. During the period three acquisitions have been completed which, added to the acquisitions undertaken in FY22, have transformed the business. The acquisition strategy has significantly increased
Slide 20: Appendix
PUBLIC Appendix redcentric AGILE © AVAILABLE » ASSURED
Slide 21: Market overview
PUBLIC Market overview redcentric AGILE © AVAILABLE » ASSURED
Slide 22: Transformed service offering
Transformed service offering Having transformed our service offering through recent acquisitions, the Group is ideally positioned to capitalise on high growth areas of the market Pre acquisition recurring revenue contribution (FY21) Post acquisition recurring revenue contribution (estimated) = Cloud
Slide 23: High growth market opportunity
High growth market opportunity Transformed cloud and security capability provides access to high-growth segments of the market UK IT services market growing at 7% CAGR Total UK IT services market is expected to be valued at £183bn by 2025 (estimated £146bn in 2022). There are several areas that are
Slide 24: Our response to market drivers
Our response to market drivers Outlook remains positive, despite ongoing headwinds, supported by robust market dynamics and a compelling service offering Digital transformation accelerated by COVID-19 Newly created Cloud Services division with transformed capability Complete end-to-end digital trans
Slide 25: Company overview, proposition and ESG commitment
PUBLIC Company overview, proposition and ESG commitment redcentric AGILE © AVAILABLE » ASSURED
Slide 26: Redcentric at a glance
Redcentric at a glance Redcentric is a leading IT managed services provider delivering highly available connectivity, cloud and Communication solutions that help public and private sector organisations succeed Formed in 2013 when Redstone reversed into InTechnology Plc The Group is comprised of 7 hi
Slide 27: Transforming and managing your mission critical IT infrastructure
Transforming and managing your mission critical IT infrastructure KEEPING 20,000 CUSTOMER SITES CONNECTED HREKEKEKRAHKE KEK users to communicate & collaborate ©®O© 6086060806080 PROVIDING ASSURANCE TO 100S OF ORGANISATIONS NHS DIGITAL PARTNER 4 © hosting national Ae CRITICAL INFRASTRUCTURE ©80008000
Slide 28: Our enhanced service portfolio
Our enhanced service portfolio fay (:) Connectivity SD-WAN HSCN connectivity Managed WAN Public cloud connectivity Managed LAN (Azure & AWS) Rewiortectee nin crtons Managed wireless networking Web Secure remote access Cellular MPLS primary & failover Internet ac Internet access WAN Insight (#) Cloud
Slide 29: Our services and capabilities
• O U R S E R V I C E S A N D C A PA B I L I T I E S • We can offer a rich end-to-end technology portfolio covering the full spectrum of cloud, colocation, connectivity, communication and cyber security solutions designed and delivered by our own highly skilled teams from our privately owned infrast
Slide 30: The investment proposition
Growing market driven by the move towards off- premise solutions and mobile access to secure services Digital transformation accelerated by COVID-19 A highly fragmented market undergoing consolidation with ample acquisition opportunities Diverse customer base Growing public sector presence Strong He
Slide 31: Customer sectors
• • • • • • Healthcare Public Sector Healthcare Local Authority Other Public Sector Manufacturing Service Provider Retail I.T & Telecoms Charities Legal Leisure Recruitment Construction Media Property Insurance Housing Associations Education Financial Services Accountants Other 31
Slide 32: Our responsibility
Our responsibility We are committed to being a socially, economically, and environmentally responsible business. This is reflected in our actions and our corporate policies. * Continuously evolving our national corporate social responsibility strategy Environmental, Social and Governance (ESG) to su
Slide 33: Thank you
PUBLIC Thank you redcentric AGILE © AVAILABLE » ASSURED