Comms Group Ltd · ASX:CCG
Comms — H1 FY2022 Earnings Presentation
23 slides from Comms's earnings presentation, Feb 24, 2022
Slide 1: 1st Half FY22 Results Presentation
For personal use only 1 Half FY22 st Results Presentation 24 February 2022 COMMS GROUP LIMITED (ASX: CCG) https://commsgroup.limited 1 This document has been approved by the Board of Comms Group Ltd
Slide 2: Agenda
Agenda For personal use only Company Overview 3 Financial Highlights 7 Business Update 14 Strategy and Outlook 17 Glossary 21 COMMS G ROUP | 2
Slide 3: Company Overview
For personal use only Company Overview COMMS G ROUP | 3
Slide 4: Comms Group at-a-glance
Comms Group at-a-glance A leading B2B provider of cloud communications (UCaaS) and managed IT and cloud services to businesses For personal use only We service our customers via three key divisions Voice Services Our goal is to enhance business Data Services agility through Telco services Global spe
Slide 5: Key timeline of events
Key timeline of events August 2020 For personal use only • Expands global MS Teams calling network to China, Philippines, Tokyo, the US and December 2020 August 2021 September 2021 Europe • Acquisition of leading • Acquisition of SME telco • Partnership with • 700% increase in SME telco provider Swi
Slide 6: Products & Services Overview
Products & Services Overview A highly focused B2B telco with a full ICT product suite and leading position as a global unified communications provider For personal use only Voice services Data services Unified Comms Solutions Managed IT services (UCaaS) • Replace legacy ISDN/PABX lines • High speed
Slide 7: Financial Highlights
For personal use only Financial Highlights COMMS G ROUP | 7
Slide 8: Key financial highlights
Key financial highlights Continued trend in growing revenue and underlying EBITDA For personal use only 1H FY22 Revenue 1H FY22 EBITDA1 1H FY 22 Gross Profit 1H FY22 Gross Margin Up 91% Up 63% Up 76% 46% vs pcp to $17.3m vs pcp to $1.95m vs pcp to $8.0m Core margin ↑ to 53%2 Annualised revenue3 Annu
Slide 9: Strong continued growth within the business
Strong continued growth within the business For personal use only Revenue Underlying EBITDA1 20 2.5 $17.3m 18 $16.1m $2m 16 2 $1.95m 14 12 1.5 $9.1m $1.2m 10 8 1 6 4 0.5 2 0 0 H1 FY21 H2 FY21 H1 FY22 H1 FY21 H2 FY21 H1 FY22 Strong revenue growth, increasing margins and solid EBITDA performance 1 Und
Slide 10: Financial Performance 1H FY22
Financial Performance 1H FY22 For personal use only • Gross Margins excluding acquired $M H1 FY21 H1 FY22 businesses continue to improve adding 3% to be just under 53% • Acquired businesses are trading within Operating Revenue 9.1 17.3 expectations Cost of Sales (4.6) (9.4) • Doubtful debts have bee
Slide 11: Financial performance over time
Financial performance over time For personal use only Operating Revenue Gross Profit 30 12 11.4 25.1 25 10 9.0 20 19.1 8 6.9 16.1 4.4 15 6 78% 9.4 92% 10 4 8.0 17.3 5 9.7 9.0 2 4.6 4.5 0 0 FY20 FY21 H1 FY22 FY20 FY21 H1 FY22 1st Half 2nd Half 1st Half 2nd Half Revenue Breakdown by Division Revenue b
Slide 12: Cash Flow
Cash Flow For personal use only $M H1 FY21 H1 FY22 Underlying operating cashflows 0.4 1.5 • Underlying cashflow from operations $1.5m Less: payment of restructuring costs (0.2) - Less: Payment of business acquisition and • Underlying operating integration expenses (0.2) (0.6) cashflows excluding pay
Slide 13: Balance Sheet
Balance Sheet For personal use only • Strong balance sheet, net assets $28.3m 30 June 31 Dec $M 2021 2021 • Cash of $2.2m at 31 Dec 21 post the acquisition payment of $3.7m for Switched On acquisition. Working Capital (current assets less 4.6 1.1 current liabilities) • Nil debt at 31 Dec 21. Debt of
Slide 14: Business Update
For personal use only Business Update COMMS G ROUP | 1 4
Slide 15: 1H FY22 Business Highlights
1H FY22 Business Highlights For personal use only Strong level of new sales closed in the 1st half across both SME and Global (Enterprise & Wholesale) divisions. Total of $235k new sales MRR closed in the half. Further wins with Global MNCs in the 1st half. Some good wins in wholesale area inc. Voda
Slide 16: OnPlatinum acquisition – entering IT services market
OnPlatinum acquisition – entering IT services market For personal use only Acquires a leading provider of Extends Comms Group’s Adds ~$16m in total group ICT1 services with a high- product offering, broadening revenue, a ~45% increase on quality customer base product set into the IT services current
Slide 17: Strategy & Outlook
For personal use only Strategy & Outlook COMMS G ROUP | 1 7
Slide 18: Comms Group strategic imperatives
Comms Group strategic imperatives For personal use only Extend our services Become a key Grow to scale Expand domestically in the corporate UCaaS provider organically and via to become a mid-market sector throughout the APAC acquisitions to over national provider with a full ICT service region and g
Slide 19: Group strategic positioning for growth
Group strategic positioning for growth Comms Group is positioning itself for sustained growth via key business strategies For personal use only Corporate mid-market and enterprise sectors • Expansion targeting businesses with 50 to 1,000+ Corporate mid-market seats via additional products & services
Slide 20: Comms Group Outlook
Comms Group Outlook For personal use only Continued strong Post-acquisition of FY22 revenue expected in Recently finalised pipeline of key new sales onPlatinum, Comms the range of $40m to $43m acquisition of onPlatinum deals Group annualised adding circa 45% to overall revenue. revenue1 is expected
Slide 21: Glossary
Glossary Term Definition For personal use only Cloud Communications The provision of key communications services from cloud servers based in data centres and over high speed internet connections. Cloud PBX, Cloud Phone, A cloud PBX functions the same as an in office PABX but is hosted in a cloud ser
Slide 22: Disclaimer
Disclaimer For personal use only The material in this presentation is a summary of Comms Group Ltd’s (CCG) Due care and consideration should be undertaken when considering and analysing activities and results, and is current at the date of preparation, 24 Feb 2022. Further CCG’s financial performanc
Slide 23: For personal use only
For personal use only COMMS GROUP LIMITED (ASX: CCG) This document has been approved by the Board of Directors