Inabox Group Limited (ASX:IAB)

Transcription

1 Inabox Group Limited (ASX:IAB) AGM Presentation November 2016 A leading hosted IT and communications solution provider to Corporates, SME s and consumer brands across Australia. We invest in our people, products and automation to make it easy for our customers to do business.

2 Disclaimer Some of the statements in this presentation constitute forward-looking statements that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Inabox Group Limited s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Inabox Group Limited s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from Inabox Group Limited s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with caution. This investor presentation may not be copied or otherwise reproduced. 2

3 Table of Contents 1. Company Overview 2. Markets & Opportunity

4 1. Company Overview

5 Company Overview Capital Structure (as at 4 Nov 16) Inabox Group Limited provides managed IT and communications solutions to corporate, government, SME and consumer brands across Australia Strong FY16 financial performance: Revenue of $88m YoY growth 37% EBITDA of $5.5m YoY growth 121% 1 NPATA 2 of $1.6m YoY growth 125% 1 Maiden dividend of 1.7c per share Established 2003, listed on ASX 2013 ASX Code No. of shares issued IAB Share price $1.20 Market Capitalisation EV Shareholder Distribution 29% 14% 20.1 million $24 million $33 million Board & Senior Executives Substantial holders (>5%) 57% Retail Investors 1. Verses underlying FY15 results. 2. NPATA: NPAT excluding amortisation relating to customer contracts from acquired businesses. NPAT for FY16 was $859k. 5

6 Investment Highlights Revenue 100 ($M) Underlying EBITDA ($M) Underlying NPATA ($M) FY14 FY15 FY FY14 FY15 FY16 FY14 FY15 FY16 Record EBITDA result of $5.5m Balance sheet will be significantly strengthened following the sale of the Cisco HCS business unit to Telstra Dividend policy adopted maiden fully franked dividend of 1.7c per share (40% of NPAT) declared for FY16 1. Underlying EBITDA: In FY15, underlying EBITDA of $2.5m excludes one-off acquisition and restructuring charges of $0.6m. 2. NPATA: NPAT excluding amortisation relating to customer contracts and relationships from acquired businesses. NPAT for FY16 was $859k 6

7 2. Markets & Opportunity

8 Our Business Enablement Enabling large retail brands to provide telecommunications services to their customers Indirect Direct Providing white labeled telecommunications solutions to over 400 retail services providers (RSP) Supplying and supporting bespoke IT and connectivity solutions for large SMEs, corporate and Government clients 8

9 Growing Market $17.35 billion $28.6 billion $650 million Fast growing global Unified Communications as a Service market size is expected to grow from USD billion in 2016 to USD billion by 2021, at a Compound Annual Growth Rate (CAGR) of 10.6% 1 Cloud communications in Australia alone set to exceed 30 per cent penetration of SMEs by 2020, and expected to represent a market value exceeding $650M 2 1. MarketsandMarkets, Aug Telsyte, January

10 Well Positioned in a Shifting Market Shift from tin-to-cloud From on-premises telecommunications hardware to hosted services from fixed line to VOIP Shift towards outsourced IT and communications services Growing demand for more data and connectivity services NBN is a catalyst for upgrades and it accelerates the adoption of cloud and next generation technologies and services Inabox is well positioned to capitalise on the structural changes taking place in the market and deliver managed services, hardware, software and communications solutions to enable our customers to successfully run their businesses 10

11 Competitive Landscape An end to end solutions provider in a rapidly consolidating market Telco core focus Telecommunications For personal use only IT core focus Managed IT 11

12 ALL CHANNELS LEVERAGE INABOX S CORE CAPABILITIES AND SYSTEMS SYSTEMS NETWORK & INFRASTRUCTURE PRODUCT CATALOGUE SERVICE DELIVERY & SUPPORT Direct MANAGED IT & COMMUNICATION SERVICES Indirect WHITE LABELLED MANAGED COMMUNICATIONS Enablement WHITE LABELLED MANAGED SYSTEMS & NETWORKS 12

13 Strategies Organic Growth Innovation Acquisitions Accelerate growth of next generation products e.g. hosted voice, data and managed services Continued focus on cross-selling opportunities to increase services sold to existing customers Continued investment into platform development, to enhance and drive efficiencies and capabilities across all business units Continue to develop vendor relationships; use increased scale to improve buying prices Be first to market with innovative new data and communications products Pipeline of acquisition opportunities driven by market dynamics HCS sale has freed up capital to fund further acquisitions Acquisitions will be accretive and leverage core capabilities and increase scale (Buying power and increased margin) 13

14 Revenue distribution % of Recurring Revenue 1 Revenue by Channel 1 30% 7% 38% 55% 70% Recurring Non-Recurring Indirect Enablement Direct 1. For year ended 30 June

15 Path to Financial Goals Investment in platforms to support higher margin products Investment in systems to drive efficiencies Investment in next generation products Complete HCS sale Driving growth and profitability - target $100m+ revenue and 10% EBITDA margin Net Debt Free 15

16 Summary & 2017 Direction Well positioned to capitalise: market undergoing structural shift from on-premises equipment and services to hosted and outsourced IT and communications services Continued organic growth: selling next generation products, mobile leveraging part of the 4G mobile network and capabilities of Telstra Corporation Limited and cross selling communications services Improved customer experience: automation, enterprise efficiencies and integration Accretive acquisitions expand capabilities and scale Strengthen balance sheet and conversion from EBITDA to NPAT and cash: complete transition of capital intensive HCS business to Telstra Returns to shareholders: dividend policy adopted and maiden full year dividend of 1.7 cents distributed 16

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