Gamma Communications Plc · LSE:GAMA
Gamma Communications — Investor Day (October 2015)
35 slides from Gamma Communications's investor day presentation, October 2015
Slide 1: Capital Markets Day
Capital Markets Day Capital Markets Day Gamma Communications plc 1
Slide 2: About Gamma
About Gamma Gamma is a rapidly growing, technology-based, provider of communications services to the UK business market Provides integrated voice, data, and mobile telecoms services and applications to businesses Key Voice products – SIP, Cloud PBX and Inbound Key Data products – Broadband, Ethernet
Slide 3: Today's agenda
Today’s agenda Why we’re succeeding in the Channel – Richard Bligh, Managing Director How we win Enterprise customers – David Macfarlane, Enterprise Managing Director Converged business mobile services – Alan Mackie, Product Director Capital Markets Day 3
Slide 4: Why are we succeeding in the Channel?
Capital Markets Day Why are we succeeding in the Channel? Richard Bligh, Managing Director 4
Slide 5: Competitive advantages
Competitive advantages Easy to do business with - the portal Giving Partners the edge - innovation Working with them to grow their businesses – Marketing – Training / accreditation – Add enterprise value Quality of service End user experience Pocket Consistency of the team / multiple engagements Lan
Slide 6: Being easy to do business with
Being easy to do business with The Portal – One location to manage all provisioning, MACs and billing – Bills downloaded at 7.00am daily A support organisation geared round the Channel – Webinars, support roadshows – Knowledge base – Site visits (educating not selling) Training / accreditation How d
Slide 7: Channel partners are different……
Channel partners are different…… Systems Unified Value Resale Cloud Integrators Communications Added And (SI) (UC) Resellers Infrastructure (VAR) Marketing Sales Specialists – SIP / Horizon / Inbound / Mobile Internal InternalAccount AccountManagers Managers Capital Markets Day 7
Slide 8: Giving partners an edge - innovation
Giving partners an edge - innovation Gamma gives the Channel the tools it needs to compete Innovation-led sales allows greater share of wallet Businesses want choice – not the usual incumbents The new products enable better customer service Partners are ‘Trusted Advisers’ of small business Product d
Slide 9: Selling on value – not price
Selling on value – not price Moved from low price to Gross Margin 45.0% best value 40.0% Negotiation training 35.0% 30.0% Sales training (and commission 25.0% structure!) 20.0% People skills 15.0% 10.0% Delivering against promises 5.0% Culture and access to the top 0.0% 2011 2012 2013 2014 Capital M
Slide 10: Commercial leverage and flexibility
Commercial leverage and flexibility Existing traditional business ‘locked in’ to provide funds for strategic products Incentives offered on strategic products - only if traditional revenues remain and are committed Enables us to offer price incentives without damaging the standard price Rate of grow
Slide 11: Growth in Channel Partners
Growth in Channel Partners Number of Gamma Partners billing >£500 H1 2015 782 2014 725 2013 627 2012 525 0 100 200 300 400 500 600 700 800 900 Capital Markets Day 11
Slide 12: How far can we take the Channel?
How far can we take the Channel? Only 43% of top SI’s currently sell Gamma IT market represents growth opportunity Mobile market poorly served Consolidation of the Channel is a myth New products sold to the existing Channel represents a huge opportunity Capital Markets Day 12
Slide 13: Summary
Summary We have a strongly differentiated proposition Growing partners every quarter in a market that is difficult to size There is plenty of opportunity left Any questions? Capital Markets Day 13
Slide 14: Enterprise solutions
Capital Markets Day Enterprise solutions Why customers depend us David Macfarlane, Enterprise Managing Director 14
Slide 15: The Enterprise market
The Enterprise market CIOs are challenged to meet increased demand with flat resources The ‘digital agenda’ is consuming internal IT resources Single provider of Data, Voice, Mobile and infrastructure are required A services provider than can change as their business does Good value, great service V
Slide 16: Enterprise solutions
Enterprise solutions Gamma removes the burden from large organisations of owning and operating their ICT estate Unlike asset burden carriers our service provides both technical and commercial flexibility, ensuring these organisations have right sized estates Capital Markets Day 16
Slide 17: Competitive landscape
Competitive landscape Systems Fixed Mobile Converged Integrators Operators Operators Operators Control & Data services Agility Mobile focused Battle ground ownership Control & Next generation / Next generation / Next generation / Voice services ownership credibility credibility credibility Control &
Slide 18: American Golf
American Golf Video case study Capital Markets Day 18
Slide 19: Thrifty Car & Van Rental
Thrifty Car & Van Rental Video case study Capital Markets Day 19
Slide 20: Customers who depend on Gamma
Customers who depend on Gamma Complete Managed Communications Service Fully Managed Voice and Data Network All Data, Voice, Mobility for 450 locations Core and Branch Data for 320 locations and HQ Cloud Hosting, Contact Centre & Security International data core and security End to End SLA – 5 Year C
Slide 21: The Gamma advantage
The Gamma advantage Managed services provider delivering Gamma ‘plus’ Control of a carrier and flexibility of a Systems Integrator 1 contract, 1 commercial model, 1 SLA, 1 support organisation Focused on the customers’ business issues End-to-end managed services Accountability Burden removal Agile C
Slide 22: Converged business mobile services
Capital Markets Day Converged business mobile services Alan Mackie, Product Director 22
Slide 23: The Gamma Mobile network – the background
The Gamma Mobile network – the background Gamma’s Mobile Network Own core infrastructure, with comparable functionality to a mobile operator, using 3rd party radio access networks Separate roaming agreement under negotiation Includes 4G high speed data services £4.5m out of £5.5m initial investment
Slide 24: Business mobile solutions - Planned phases of product development
Business mobile solutions - Planned phases of product development Investment in the Launch of Business Mobile Converged Business Mobile Mobile Network Service Services Dec 2014 1st Half 2016 Early 2017 • CAPEX Investment Mobile PBX (£5.5m) Total UK market Total UK market ~10m UK business mobile ~4m
Slide 25: The market opportunity
The market opportunity The business communications market has traditionally been split between fixed voice/data and mobile services Mobile infrastructure and services are now at the core of how most businesses communicate BUT, they are basically “individual user” services not best placed to support
Slide 26: The market opportunity
The market opportunity Converge the currently separate functionality of mobile and fixed voice services The flexibility and ease of use of The business requirements of mobiles fixed voice services : - Emotional benefit of mobile devices - Single number for all customer interaction (08, 03 or local n
Slide 27: Current business communications set up
Current business communications set up – a ‘typical’ small business (<250 staff) Fixed Business numbers Complexity and cost Mobile Individual personal numbers Capital Markets Day 27
Slide 28: The current markets
The current markets UK market Markets Gamma doesn’t serve - Low penetration of Fixed/Mobile - Scandinavian markets well developed services in the UK in converged mobile services - Current solutions in the market - Approx 60% market penetration of are complex business mobile users that have an additi
Slide 29: The 'new' business comms set up – 'typical' small business
The ‘new’ business comms set up – ‘typical’ small business Convergence = flexibility and cost reduction Business numbers Capital Markets Day 29
Slide 30: Why Gamma can make this market work
Why Gamma can make this market work Network capability – fixed voice and new mobile capability – One of a very limited list of providers that have fixed voice, IP and Mobile capability Focus – this is a mobile product for SMEs that saves them money via a single contract Route to market – the Gamma s
Slide 31: Summary
Summary Large potential market opportunity to converge mobile services with fixed voice functionality Gamma has both mobile and fixed network capability – one of a very limited list that do Defined SME target market for simple to deploy and manage service Low CAPEX requirements to bring the service
Slide 32: Summary
Capital Markets Day Summary Bob Falconer, Chief Executive 32
Slide 33: Takeaways
Takeaways The channel is key to Gamma and growing The Enterprise space is a new market where we have had good early wins The integration of fixed and mobile telephony offers some medium term opportunity to differentiate further There is a huge amount to go for The Board and Management are confident
Slide 34: Questions
Questions Capital Markets Day 34
Slide 35: THANK YOU
THANK YOU www.gamma.co.uk 35