Gamma Communications Plc · LSE:GAMA
Gamma Communications — Investor Day (November 2021)
47 slides from Gamma Communications's investor day presentation, Nov 8, 2021
Slide 1: Gamma Communications plc Capital Markets Day
Gamma Communications plc Capital Markets Day European Markets 8th November 2021 Working smarter, together.
Slide 2: Housekeeping for the day
Introduction Housekeeping for the day Live 2-hour F2F meeting and webcast Q&A at the end of the presentation • 20 minutes facilitated by Andrew Belshaw • You can email questions to Andrew.Belshaw@gamma.co.uk Presentations, video and transcript will be available on Gamma’s website: https://www.gammac
Slide 3: Agenda
Introduction 01. Andrew Taylor and Andrew Belshaw Strategy Update – European Opportunity and Plan Agenda 02. Andy Morris Benelux Capital Markets Day 03. Gerben Wijbenga 8th November 2021 DACH 04. Achim Hager Spain 05. Xavi Casajoana Wrap-up and Q&A 06. Andrew Belshaw & Andrew Taylor
Slide 4: Objectives for the day
Introduction Objectives for the day 1. Provide a reminder of Gamma’s long-term growth strategy and our execution progress 2. Reaffirm the importance of European markets in achieving our ambitions 3. Provide an update on Gamma’s European strategy and explain how our technology strategy and product po
Slide 5: Gamma Senior Leadership Team
Gamma Senior Leadership Team Introduction ✓ CEO Andrew Taylor ✓ Chief Financial ✓ Chief Marketing & Managing Director Germany Officer Product Officer UK Channel Achim Hager Andrew Belshaw Chris Wade Daryl Pile ✓ ✓ Chief Strategy & Chief Technical Managing Director Benelux Operations Officer Officer
Slide 6: A quick snapshot of our business
Introduction A quick snapshot of our business • A developer and provider of UCaaS, CCaaS, voice, data and mobile communication services • Focused on the UK and European B2B H1 2021 £217m Revenue +89% ARR no debt +1,600 employees (230 Engineers) located in mainly the communications market £46m EBITDA
Slide 7: Market & Customer Drivers – positive growth trends
Introduction Market & Customer Drivers – positive growth trends • UCaaS is a key enabler for flexible and remote working across all business types and sizes Rapid increase in Increased adoption of Companies accelerating their awareness and demand remote and flexible working digital transformations a
Slide 8: Core Gamma Foundations – Why we win?
Introduction Core Gamma Foundations – Why we win? Product Network Quality Digital Platforms Commercial Agility People Driving innovation Backed up by strong Providing all channels Providing our partners Human aspect of our through a strong and network foundations with the digital edge leverage and f
Slide 9: A quick snapshot of our European business (H1 2021)
Introduction A quick snapshot of our European business (H1 2021) Revenue EBITDA People £35.4m £4.1m c.400 staff 16% of Group revenue 9% of Group EBITDA Across all markets Cloud Seats Other Products ✓ SIP ✓ Mobile ✓ MSTDR ✓ Collaboration 121k ✓ Fixed Data Access 17% of total group seats Consistent ac
Slide 10: Revenue from European UCaaS business growing in line with expectations
Introduction Revenue from European UCaaS business growing in line with expectations Evolution H2 20 – H1 21 Mix H1 21 37.9 -7% 35.4 42% Revenue 24.1 -15% 20.4 Other Other (m£) UCaaS 58% UCaaS 13.8 +8% 15.0 H2 20 H1 21 16.1 ±0% 16.1 Gross 7.5 -11% 6.7 42% Other Other Profit UCaaS 58% UCaaS (m£) 8.6 +
Slide 11: Gamma UK cloud PBX seats and EBITDA margin: Europe in 2021 looks like UK in 2012-14
Introduction Gamma UK evolution of cloud PBX seats and EBITDA margin: Europe in 2021 looks like UK in 2012-14 Gamma UK cloud PBX seats and EBITDA margin (#cloud PBX seats (k), %EBITDA margin) Seats EBITDA margin 19.3% Europe H1 2021: 601 • EBITDA: 11.6% • Seats: 121k 17.0% 16.0% 522 14.8% 14.9% 13.3
Slide 12: Agenda
Introduction 01. Andrew Taylor and Andrew Belshaw Strategy Update – European Opportunity and Plan Agenda 02. Andy Morris Benelux Capital Markets Day 03. Gerben Wijbenga 8th November 2021 DACH 04. Achim Hager Spain 05. Xavi Casajoana Wrap-up and Q&A 06. Andrew Belshaw & Andrew Taylor
Slide 13: Strategy Update
Strategy Update European Opportunity and Plan Andy Morris
Slide 14: Our 2019 view of the market evolution
2023 Strategy and the Growing Opportunity Our 2019 view of the market evolution 2019 Cloud UCaaS Telephony wave wave SIP wave VoIP bundled Full stack Simple VoIP with Hosted integrated telephony PBX experience Mid-term Long-term 3-5y >5y Source: Outvise analysis
Slide 15: 2021 Market Situation Today
2023 Strategy and the Growing Opportunity 2021 Market Situation Today PUSH COVID HEALTH MEASURES PUSH USERS AND UCaaS BUYERS Cloud wave PUSH Telephony wave Full stack SIP wave integrated TELECOM + VoIP bundled experience ICT Simple VoIP with Hosted telephony PBX NOW Source: Outvise analysis
Slide 16: 2019 - we unveiled our 2023 strategy plan with 4 key priorities
2023 Strategy and the Growing Opportunity 2019 - we unveiled our 2023 strategy plan which included 4 key priorities 2019 2023 key strategic priorities Evolve our strong cloud telephony position into the UCaaS market Build on our Fixed and Mobile Telecom strength to differentiate our proposition from
Slide 17: 2019 - we unveiled our 2023 strategy plan with 4 key priorities
2023 Strategy and the Growing Opportunity 2019 - we unveiled our 2023 strategy plan which included 4 key priorities 2023 key strategic priorities Evolve our strong cloud telephony position into the UCaaS market Build on our Fixed and Mobile Telecom strength to differentiate our proposition from pure
Slide 18: Focus on UCaaS has involved developing both our Product Portfolio and Sales Channels
2023 Strategy and the Growing Opportunity Focus on UCaaS has involved developing both our Product Portfolio and Sales Channels 2023 key strategic priorities Evolve our strong cloud telephony position into the UCaaS market Product Portfolio Evolution of Sales Channels UCaaS CCaaS Unified Contact Cent
Slide 19: We have built the capability to deliver our long term product roadmap
2023 Strategy and the Growing Opportunity We have built the capability to deliver our long term product roadmap Gamma’s product portfolio UCaaS CCaaS Unified Contact Centre Communications as a Service as a Service Network & Cloud Platform Connectivity Fixed & Mobile WAN WiFi Other Gamma Voice Produc
Slide 20: We are anticipating structural change in the market
2023 Strategy and the Growing Opportunity We are anticipating structural change in the market. The pandemic has accelerated the convergence of IT and Communications Developing Landscape Wholesale Business IT Digital Direct Direct Digital Channel Application Resellers Market Places Managed Partners S
Slide 21: Significant progress in building Product and Channel capabilities
2023 Strategy and the Growing Opportunity We have made significant progress in building the Product and Channel capabilities for the anticipated evolution of the market Business Segment Channel Proposition Direct Enterprise Field Sales Indirect Partner SME Channel Digital Micro Companies
Slide 22: 2019 - we unveiled our 2023 strategy plan with 4 key priorities
2023 Strategy and the Growing Opportunity 2019 - we unveiled our 2023 strategy plan which included 4 key priorities 2023 key strategic priorities Evolve our strong cloud telephony position into the UCaaS market Build on our Fixed and Mobile Telecom strength to differentiate our proposition from pure
Slide 23: We expect significant growth in UCaaS and CCaaS across all geographies
2023 Strategy and the Growing Opportunity We expect significant growth in our key products UCaaS and CCaaS across all geographies, underpinned by a stable demand for connectivity Today 2025 Today 2025 Significant growth in UCaaS • 6.4m cloud seats • 13.6m cloud seats • 7.0m cloud seats • 15.2m cloud
Slide 24: European M&A - Ideal target profile
2023 Strategy and the Growing Opportunity European M&A - Ideal target profile SME focussed provider of IP based communications services Product Network Quality Digital Platforms Commercial Agility People Hosted PBX Supporting platforms Focused, straightforward Strong brand recognition Management and
Slide 25: Target Identification - Outline
2023 Strategy and the Growing Opportunity Target Identification - Outline Filtering/Qualification Process Selected Targets Qualified Market Long list Short list Candidates 24 62 companies 247 companies companies
Slide 26: Our M&A execution was driven by the 2023 strategic priorities
2023 Strategy and the Growing Opportunity Our M&A execution was driven by the 2023 strategic priorities, adding new reach and capabilities to Gamma M&A execution in line with 2023 Strategy UCaaS Digital capabilities Netherlands Group Technology Group Technology Group Technology March 2020 Nov 2019 M
Slide 27: We are evolving our Group Operating Model
2023 Strategy and the Growing Opportunity We are evolving our Group Operating Model to reflect our primary business objectives Defend and grow our market Geographically expand into Strategic Product Platform position in the UK Europe & Operating Model 26
Slide 28: European Growth 'Platform' Growth Plan 2021 - 2025
2023 Strategy and the Growing Opportunity European Growth ‘Platform’ Growth Plan 2021 - 2025 Market Presence • Leverage current positioning ready for adoption of cloud • Build a presence in the IT and Business Application Channels Market Presence • Continue to assess Inorganic growth options Product
Slide 29: Agenda
Introduction 01. Andrew Taylor and Andrew Belshaw Strategy Update – European Opportunity and Plan Agenda 02. Andy Morris Benelux Capital Markets Day 03. Gerben Wijbenga 8th November 2021 DACH 04. Achim Hager Spain 05. Xavi Casajoana Wrap-up and Q&A 06. Andrew Belshaw & Andrew Taylor
Slide 30: Benelux
Benelux Gerben Wijbenga ve
Slide 31: Context: company history and market evolution
Benelux Context: company history and market evolution • Leading Dean Connect founded (B2B VoIP fixed telephony provider) provider in Gamma acquires Dean One and Gamma acquisition of Gamma 2005 GnTel and Dean One Schiphol Connect GnTel (Dutch cloud PBX Benelux • Challenger provider) rebranded into Ga
Slide 32: Build Gamma brand and propositions
Benelux Build Gamma brand and propositions Before New Brands Products Gamma Unified Gamma Gamma Gamma communications SIP Trunking Mobile Internet
Slide 33: Gamma Benelux evolution
Gamma Benelux evolution Benelux Market Presence Product and Channel Roadmap Proposition • Mixture of brands in Cloud, Mobile • Well established Cloud PBX, SIP • Focussed on PBX Channel and IT Services and Mobile products Today • Mixture of brands and propositions • Different positioning per brand •
Slide 34: Agenda
Introduction 01. Andrew Taylor and Andrew Belshaw Strategy Update – European Opportunity and Plan Agenda 02. Andy Morris Benelux Capital Markets Day 03. Gerben Wijbenga 8th November 2021 DACH 04. Achim Hager Spain 05. Xavi Casajoana Wrap-up and Q&A 06. Andrew Belshaw & Andrew Taylor
Slide 35: DACH
DACH Achim Hager O ~)
Slide 36: Context: company history and market evolution
DACH Context: company history and market evolution • Leading SIP Gamma acquisition of Telsis Gamma acquisition of GnTel provider (contact centre solutions) (Dutch cloud PBX provider with • Cloud PBX German subsidiary) recently HFO launched history • Focus on reseller model, Founded as Acquisition of
Slide 37: Why Gamma?
DACH Why Gamma? Decision criteria Assessment • In Gamma we found a loyal and trustworthy partner who started the Are there common and positive, related roots in business at the same time, in the same environment as we did the past? • When HFO was founded we started working with Viag Interkom / Briti
Slide 38: Gamma DACH evolution
DACH Gamma DACH evolution Market Presence Product and Channel Roadmap Proposition • Strong presence and Brand in SIP • Focussed on PBX Channel as and mobile services • Well established SIP product resellers for SIP Today • Base of 1100 listed SIP partners, • Cloud PBX Product launched 2020 • Primari
Slide 39: Agenda
Introduction 01. Andrew Taylor and Andrew Belshaw Strategy Update – European Opportunity and Plan Agenda 02. Andy Morris Benelux Capital Markets Day 03. Gerben Wijbenga 8th November 2021 DACH 04. Achim Hager Spain 05. Xavi Casajoana Wrap-up and Q&A 06. Andrew Belshaw & Andrew Taylor
Slide 40: Spain
Spain Xavi Casajoana
Slide 41: Context: company history and market evolution
Spain Context: company history and market evolution • Leading cloud Launch of OIGAA Launch of franchise PBX provider (proprietary cloud PBX, SIP sales model and in the second and ADSL) <10 seats MVNO Voz tier after the VozTelecom acquisition of Telecom network ComyMedia (IT & Gamma acquisition of La
Slide 42: Case study
Spain Case study Company overview Current momentum and synergies • Successful relationship with vertical software developers and • Spanish CRM SaaS solution provider for real estate CRM/ERPs integrators developing new customers from their existing agents with >15 years of experience base, by integra
Slide 43: Gamma Spain evolution
Spain Gamma Spain evolution Market Presence Product and Channel Roadmap Proposition • Strong B2B challenger brand in • Established Sales process that Cloud Communications & SIP • UCaaS cloud proposition with owns the end customer. integrations to Business Today • Credible alternative to the applicat
Slide 44: Agenda
Introduction 01. Andrew Taylor and Andrew Belshaw Strategy Update – European Opportunity and Plan Agenda 02. Andy Morris Benelux Capital Markets Day 03. Gerben Wijbenga 8th November 2021 DACH 04. Achim Hager Spain 05. Xavi Casajoana Wrap-up and Q&A 06. Andrew Belshaw & Andrew Taylor
Slide 45: Wrap up
Wrap-up Wrap up • Europe represents a significant long-term growth opportunity for Gamma • We have a very clear growth strategy – all encompassing & execution going very well • Our “land & expand” European M&A strategy is progressing very well - Acquired strong businesses (mini-Gamma’s) in key growt
Slide 46: Q&A
Q&A Andrew Belshaw
Slide 47: Thank you.
Thank you. Working smarter, together.