FY 2015 Results Presentation June 2015 | Agenda About IMImobile - - PowerPoint PPT Presentation

FY 2015 – Results Presentation

June 2015

› About IMImobile › Products and technology › Financial results › Regional updates › Summary

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| Agenda

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| 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

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What we do

We are an IP led technology company that provides software and services to clients to help them engage with their customers

• n 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

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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

• f 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

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| 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 › Products and technology › Financial results › Regional updates › Summary

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| Agenda

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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

Enablers Gateway Platform Product

| 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

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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

• ver 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

• perators, removing integration complexity for

merchants.

| Our core product set

› About IMImobile › Products and technology › Financial results › Regional updates › Summary

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| Agenda

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| 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

• f 48% to £5.6m (FY14: £3.8m)

Key financial highlights

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| 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

Key financial highlights

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| 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

Key financial highlights

› About IMImobile › Products and technology › Financial results › Regional updates › Summary

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| Agenda

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| 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

• ften included in the commercial
• ffering

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%

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| 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.

Regional currency in GBPm

£’m

Gross Profit

£11m £11.3m £16.4m

Tier 1 Bank

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| Strategic highlights - TextLocal Acquisition

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

• ver 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

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| Regional Overview :: Middle East and Africa

Key customers include:

» 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).

Financial performance: Operating performance:

» 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.

Regional currency in USDm

Gross Profit

$’m $6.8m $17m $13.9m

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| Regional Overview :: India and SE Asia

Key customers include:

» 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

Financial performance: Operating performance:

» 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 FY15 Managed Solution SaaS / Cloud Licence / One-off

Regional currency inINRm

₹’m

Gross Profit

₹ 715.8 ₹ 566.8 ₹ 493.7

› About IMImobile › Products and technology › Financial results › Regional updates › Summary

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| Agenda

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| Summary and outlook

» Successful AIM listing in June 2014 provides foundation for capital raising » Acquisition and successful integration

• f 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

• f 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

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| Disclaimer

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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

• perating 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

• r 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.