fy 2015 results presentation · fy 2015 – results presentation june 2015 ... » listed on aim in...

FY 2015 – Results Presentation June 2015

› About IMImobile

› Products and technology

› Financial results

› Regional updates

› Summary

2

| Agenda

3

| The management team

Mike Jefferies

Group Finance Director

Jay Patel

Chief Executive Officer

» 6 years at IMImobile

» Executive position at

WIN plc and formerly

with the Whirlpool

Corporation

» Chartered Management

Accountant

» 15 years with IMImobile

» 21 years of Technology,

Media & Telecom

experience with BSkyB,

UBS Warburg, Spark

Ventures

» Chartered Accountant with

KPMG and MBA from

INSEAD

Vishwanath Alluri Founder & Chairman

Shyam Bhat Founder & CTO

› Chartered Accountant and

Company Secretary

› Extensive experience in creating

technology companies

› Engineer from highly prestigious

Indian Institute of Technology,

Bombay

› Two decades of experience in

engineering new product

developments

John Allwood Non-Executive Director

Simon Paul Blagden MBE Non-Executive Director

› Ex Chief Executive of Orange UK

› Ex MD of Telegraph Media Group

› Non-Executive Director of Talk Talk

› Non-Executive Co-Chairman

Fujitsu Europe

› Chairman Duke of York Trust

Board of Directors

4

What we do

We are an IP led technology

company that provides software

and services to clients to help

them engage with their customers

on mobile devices.

› 2003 First products sold in India

› 2007 Internationalisation began

› 2010 UK acquisition

› 2014 AIM Listing

The company HQ is in London,

with 680 employees

| About IMImobile

Live services in

Atlanta

London

Dubai

Background

Who we do it for

Bogota

Hyderabad

5

Key financial highlights

» Revenue up 13% to £48.9m (2014: £43.4m)

» Gross profit up 8% to £30.0m (2014: £27.9m)

» EBITDA up 27% to £9.2m (2014: £7.2m)

» Adjusted profit after tax up 48% to £5.6m (2014: £3.8m)

» Cash and cash equivalents £14.6m (2014: £9.3m)

Key operational highlights

» New major client wins in all regions

» Key new contracts signed in India

» Renewal of several major contracts

» Listed on AIM in June 2014, raising net proceeds

of approximately £7m

» Acquisition and successful integration of Textlocal

| Key highlights

23.5

27.9

30.0

20.0

22.0

24.0

26.0

28.0

30.0

32.0

FY13 FY14 FY15

Gross Profit in £m

6.1

7.2

9.2

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

FY13 FY14 FY15

EBITDA in £m

6

| Market context

Mobile (Smartphone)

Penetration

Mobile Network

Speed

Big Data

(cloud computing)

Optimise cross-

screen/channel customer

experience

IT focus on digitisation of

service delivery

Use of real-time data in

customer engagement

Technology trends

Business challenges

› About IMImobile




› Summary

7

| Agenda

8

Mobile Networks Payment Networks Social Networks OTT Services

.

DaVinci

CMS

Campaign

Manager

DaVinci

Social

Direct Carrier

Billing Openhouse Textlocal

Service Manager

Policy Manager

Settlement Engine

ID and Access Control

Partner Manager

Resource Manager

Reporting & Data Visualisation Governance & User Management Service Creation Environment API Gateway

DaVinci Evolved Service Platform

En

ab

lers

G

ate

wa

y

Pla

tfo

rm

Pro

du

ct

| Technology :: DaVinci Platform

The DaVinci ESP forms the bedrock of our software, service and product offering.

Our platform and solutions are network, device and channel agnostic.

Licence M.S. SaaS Licence M.S. SaaS SaaS SaaS M.S. SaaS Licence

9

Textlocal Campaign Manager Openhouse

Enterprise-grade Campaign Management tool for

real-time multi-channel marketing

communication.

Single platform for marketing automation across

SMS, MMS, Voice, Push, Email and USSD.

Market leading self-serve text messaging and

mobile marketing platform for businesses.

Feature-rich capabilities allow SME

customers to quickly deploy and manage

messaging campaigns.

Enterprise-grade platform for creation of

inbound and outbound service delivery

communications.

Offers rich set of assets (messaging, voice,

location etc.) via APIs and workflow builder.

DaVinci Social DaVinci CMS Direct Carrier Billing (DCB)

Carrier-grade Content Management System for

delivering multi-channel content services.

Reduces time to market for new content and

streaming services across mobile, tablet and web.

UGC (User Generated Content) platform for

the broadcasting value chain to engage and

build relationships with an audience base.

Single platform for visibility and interaction

over mobile, digital and social channels.

Mobile payment solution that allows merchants to collect

payments from customers via their mobile phone bill.

One single API provides access to multiple mobile

operators, removing integration complexity for

merchants.

| Our core product set

› About IMImobile




› Summary

10

| Agenda

11

| Income statement

Year ended 31 March (GBP 000’s) 2015 2014 % change

Revenue 48,876 43,404 13%

Gross profit 30,028 27,899 8%

EBITDA 9,156 7,218 27%

Depreciation and amortisation (2,442) (2,106)

Operating profit before SBP and

exceptional items 6,714 5,112 31%

Share based payments (7,294) (150)

IPO related costs and other exceptional

items (1,720) 273

Financing costs 13 26

Tax (1,076) (1,342)

(Loss) / Profit after tax (3,363) 3,919

EBITDA 9,156 7,218 27%

EBITDA % 18.7% 16.6%

Adjusted profit before tax 6,727 5,138 31%

Adjusted profit before tax % 13.8% 11.8%

Adjusted profit after tax 5,600 3,796 48%

Adjusted profit after tax % 11.5% 8.7%

» Growth in all key metrics

» Revenue of £48.9m, +13%

» Gross profit of £30.0m, +8%

» EBITDA of £9.2m, +27%

» Improving operating leverage

» Operating profit before SBP and

exceptionals of £6.7m, +31%

» Adjusted profit after tax growth

of 48% to £5.6m (FY14: £3.8m)


12

| Balance sheet

As at 31 March (GBP 000’s) 2015 2014

Non-current assets Goodwill 17,934 7,861 .

Intangible assets 1,678 475 .

Available-for-sale financial assets 279 424 .

Property, plant and equipment 4,285 5,134 .

Deferred tax assets 911 871 .

25,087 14,765 .

Current Assets Cash and cash equivalents 14,617 9,305 .

Pass through billing revenues 3,175 4,799 .

Trade and other receivables 16,570 16,568 .

34,362 30,672 .

Current Liabilities Trade and other payables (20,104) (20,402) .

(20,104) (20,402) .

Net current assets 14,258 10,270 .

Non-current liabilities Redeemable preference shares - (10,895) .

Provision for defined benefit

gratuity (406) (245) .

(406) (11,140) .

Net assets 38,939 13,895 .

» Goodwill created on

acquisition of Textlocal

» Modest capex spend

» No external debt

» Net £7m of cash raised as

part of the IPO

» £10m paid for acquisition of

Textlocal

» Preference shares converted

to equity prior to IPO


13

| Cash flow

Year ended 31 March (GBP 000’s) 2015 2014

Net cash flows from operating activities 8,234 8,748

Interest received 13 31

Purchases of intangibles (672) (186)

Purchases of property plant and equipment (967) (1,683)

Acquisition of subsidiary as part of capital restructuring (23,464) (113)

Acquisition of subsidiary net of cash acquired (7,970) -

Other investing activities 15 (616)

Net cash used in investing activities (33,045) (2,567)

Repayment of borrowings – Bank loans - (1,220)

Issue of borrowings – Related party director loans - (301)

Proceeds from issuance of Ordinary shares 30,000 572

Dividends paid to owners of the parent - (415)

Net cash used in financing activities 30,000 (1,364)

Net increase in cash and cash equivalents 5,189 4,817

Cash and cash equivalents at beginning of year 9,305 4,643

Effect of foreign exchange rate fluctuations 123 (155)

Cash and cash equivalents at the end of the year 14,617 9,305

» Operating cash conversion of 90%

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15

Group Net Debt (£m)

Cash Debt


› About IMImobile




› Summary

14

| Agenda

15

| Revenue Models

Managed Solutions IP (Platform) + Last Mile + People

Licence Fees IP (Platform)

» Combination of software and

professional services

» Customer contracts the day-to-

day management of the service

+ the technical delivery and

platform

» Contracts are longer term

» Software is deployed in the

customer’s own network

environment

» Sometimes sold in conjunction

with third-party hardware

» Annual maintenance fees are

often included in the commercial

offering

CRM

SaaS IP + Last Mile

» A provision of software or API

connectivity

» The commercial model is usually a

mix of recurring licence + support

fees + transactional revenues

» Ongoing operational support tends

to be lower, with variable third-

party costs incurred

*Approximate revenue split

50% 35% 15%

16

| Regional Overview :: Europe & the Americas

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

FY13 FY14 FY15

Managed Solution SaaS / Cloud Licence / One-off TextLocal

Key customers include:

» Europe makes up over 52% of Group gross profit

» Gross profit (incl. Textlocal) grew by 43% in the FY 31

March 2015

» Like for like gross profit growth strong at 26%

» Gross margins increased (mix of delivery models and

falling costs of 3rd party network infrastructure)

Financial performance:

Operating performance:

» New client wins across mobile operator, retail, gambling

and gaming sectors as well as upsell and cross sell to

existing customers.

» Acquisition and integration of Textlocal in line with

expectations. Plans progressing to leverage global

footprint and rollout into new geographies.

» All our products and platforms are live in this region with

significant opportunities in the financial services sector.

» A growing Americas operator business, with continuing

investment in US market and operations.

Regio

nal curr

ency in G

BP

m

£’m Gross Profit

£11m £11.3m

£16.4m

Tier 1

Bank

17

| Strategic highlights - TextLocal Acquisition

» Best-in class messaging solutions platform for SMBs, serving

over 100,000 businesses since its foundation in 2005

» Strong track record of profit and cash generation with revenue

and profit after tax of £7m and £1m, respectively, for the year

ending 30 November 2013

» Acquisition cost of £10m cash and £1m by way of IMI shares.

Deferred consideration of up to £2.15m

» Textlocal shows strong growth in revenue of 21% in period Dec –

May 2015 vs same period 2014

» Successful integrations against group objectives - alignment of

technical roadmap, product launch in India in FY 2015 and further

cross-sell opportunities through mobile operators and other

resellers

» Launch of Messenger 3.0 in February 2015 with improved user

interface and added new features

Reason for acquisition

Progress since acquisition

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

FY13 FY14 FY15

Managed Solution SaaS / Cloud Licence / One-off

18

| Regional Overview :: Middle East and Africa


» Strong managed solution performance with year on year

gross profit growth of 16% from recurring revenue

contracts.

» Expected year on year gross profit decline from licence

revenues (following exceptional FY 31 March 2014).



» New territory and service deployments for existing

customers, largely mobile operator group relationships in

the region.

» New services live in Senegal, Ghana, Nigeria, Guinea and

Niger.

» We expect to establish broader product set in the coming

year in the region, catering to enterprises and

governments.

Regio

nal curr

ency in U

SD

m

Gross Profit $’m

$6.8m

$17m

$13.9m

19

| Regional Overview :: India and SE Asia


» Gross profit decline of 15% compared to FY 31 March

2014, in local currency the decline was 13%.

» India region represents 17% of Group gross profit

» Significant increase in gross profit from non-operator

segments



» Successful win of multiple managed solution contracts

with operators in India, Myanmar and Nepal.

» Signed new customers in the public sector and with

leading FMCG consumer brands.

» Invested in sales and marketing, expect to see growth in

new sectors in the region.

» Launch of Textlocal over the coming year will broaden

SaaS product portfolio and we will continue to invest in

targeting new sectors.

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

FY13 FY14 FY15Managed Solution SaaS / Cloud Licence / One-off

Regio

nal curr

ency inIN

Rm

₹’m Gross Profit

₹ 715.8

₹ 566.8

₹ 493.7

› About IMImobile




› Summary

20

| Agenda

21

| Summary and outlook

» Successful AIM listing in June 2014

provides foundation for capital raising

» Acquisition and successful integration

of Textlocal, trading well since

completion in October 2014, generating

profit for the Group

» Good performance across key financial

metrics and new major client wins in all

regions combined with renewal of key

contracts with existing clients Well placed to take advantage

of technology trends in fast

growth markets.

Transformational year

» FY 2016 has started well with trading in

line with Directors’ expectations

» Continuing investment in technology

roadmap and geographic expansion

underpin plans for organic growth

» Significant consolidation opportunities

in a fragmented market

Positive Outlook

| Thank you

5 St John’s Lane

London

EC1M 4BH

United Kingdom

IMImobile PLC

22

| Disclaimer

23

This presentation has been prepared by IMImobile PLC (Company). This presentation does not constitute or form part of any offer to sell or issue, or

invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company or in any other entity, nor

shall this document or any part of it, or the fact of its presentation, form the basis of, or be relied on in connection with, any contract or investment decision, nor

does it constitute a recommendation regarding the securities of the Company or any other company.

The information in this presentation includes forward-looking statements that are based on the Company's or, as appropriate, the Company's directors' current

expectations and projections about future events. These forward-looking statements may be identified by the use of forward-looking terminology, including

without limitation the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or their negative or other

variations or comparable terminology, or by discussion of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements, as well as

those included in any other material discussed at any presentation, are subject to risks, uncertainties and assumptions about the Company and its subsidiaries

and investments and the markets in which the Company operates. These risks include but are not limited to the development of its business, trends in its

operating industry, and future capital expenditures. The events or circumstances referred to in the forward-looking statements may differ materially from those

indicated in these forward-looking statements. Forward-looking statements may differ from actual results and none of the future projections, expectations,

estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or

guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the

case of the assumptions, fully stated in the presentation. Statements contained in this document regarding past trends or activities should not be taken as a

representation that such trends or activities will continue in the future.

The information contained in this presentation, including any forward-looking statements, is provided as at the date of this presentation.

Subject to its disclosure obligations neither the Company nor any of its affiliates, or individuals acting on its behalf, undertakes to publicly update or revise any

forward-looking statements or other information in this presentation, whether as a result of new information, future events or otherwise. As a result of these

risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements as a prediction of actual results of the Company

or otherwise.

The information and opinions contained in this presentation and any other are material discussed verbally are subject to verification, completion and change

without notice. Neither the Company nor its advisers and/or agents undertakes any obligation to provide any recipient with access to any additional

information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent.

No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its affiliates (within the meaning of Rule 405

under the US Securities Act 1933) members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the

information or opinions contained in this presentation or any other material discussed verbally. None of the Company or any of its affiliates (as defined above),

members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this

presentation or its contents or otherwise arising in connection with it.

fy 2015 results presentation · fy 2015 – results presentation june 2015 ... » listed on aim in...

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