IMImobile PLC Interim Results Overview Six Months Ended 30 - - PowerPoint PPT Presentation

Jay Patel, Chief Executive Officer Mike Jefferies, Chief Financial Officer

November 2019

IMImobile PLC

Interim Results Overview

Six Months Ended 30 September 2019

Interim Results Presentation FY20, 30 September 2019

A global communications software and solutions provider

2

Who we are What we do Who we do it for

We provide cloud communica nicati tions s software re that enables enterprises to automate te digital customer interactions to improve custom tomer r experie rience nce and reduce uce costs ts. Our differentiation is that our platform & applications work together and integrate with third- party suppliers to provide end-to to-end automatio tion

• f customer journeys.

Business split Key financials

▪ Organic recurring revenue growth for 17 years ▪ Management shareholding: 14% 5-year revenue CAGR 5-year gross profit CAGR 5-year adjusted EBITDA CAGR

31% 21% 21%

Regional split Business model

• Approx. Sector split

2000 Founded with mobile-first vision 2014 Listed on London Stock Exchange’s AIM market 1100 Global employees 21 Offices - London HQ, Boca Raton, Joburg, Dubai 8 Successful acquisitions since IPO 1 Market leader in UK, Canada and South Africa 2019 Acquisition of 3C, global leader in RCS

MRR – Monthly recurring revenue; NRR – Non recurring revenue

Interim Results Presentation FY20, 30 September 2019

H1 Group highlights – growth in all regions

3

Financial highlights Operational highlights

▪ Organic growth in all regions and business units ▪ Milestone acquisition of 3Cinteractive integrated, strengthening position in North America and establishing global RCS leadership position ▪ Strong period of new client wins and renewal of all major contracts in the period ▪ New launches using richer messaging channels – Apple Business Chat, RCS & WhatsApp Business ▪ Revenue up 24% to £83.0m (2018: £67.2m) (18% organic) ▪ Gross profit up 21% to £35.2m (2018: £29.2m) (12% organic) ▪ Adjusted EBITDA up 27% to £9.8m (2018: £7.7m) ▪ Adjusted profit after tax up 12% to £5.2m (2018: £4.7m) ▪ Adjusted diluted EPS up 5% to 6.9p (2018: 6.6p) ▪ Adjusted cash generated from operating activities of £12.5m; cash conversion of 127% (2018: 80%)

27.8 36.0 53.1 67.2 83.0

FY16 FY17 FY18 FY19 FY20 16.6 20.2 24.7 29.2 35.2

FY16 FY17 FY18 FY19 FY20 4.5 5.3 5.7 7.7 9.8

FY16 FY17 FY18 FY19 FY20

H1 Revenue (£m) H1 Gross Profit (£m) H1 EBITDA (£m)

Interim Results Presentation FY20, 30 September 2019

Investment case

4

Structural growth

• pportunity

Track record of growth Own IP and R&D investment Market leader Experienced management

>85% 5%

senior management team with over 10 years sector experience

(SVP level and above)

"The enhanced functionalities of RCS will lead to a nearly sixfold ld incre rease se over r the next t five years rs for messages that businesses send to consumers”1

17 years

• f organic recurring

revenue growth

• No. 1

UK, South Africa, Canada

Top 5

Providers in the US

Market & Products

We believe that technology has and will continue to fundamentally change how businesses engage with their customers. New communications channels and the possibilities of intelligent automation will allow businesses to improve customer experience and reduce costs. We help our clients do this.

Interim Results Presentation FY20, 30 September 2019 7

The CPaaS market is forecast to grow from $2bn in 2017 to $10.9bn in 2022.

$10. 0.9bn 9bn by 2022 22

IDC positions IMImobile as a Major jor Player er in the 2019 IDC MarketScape for Worldwide Cloud Communications Platform-as-a-Service

Spending on CPaaS will grow at CAGR of 49.6% to reach $4.63bn by 2021

49.6% 6% CAGR GR

Developer focus Enterprise focus cus

The Communications Platform as a Service ‘CPaaS’ market opportunity

Interim Results Presentation FY20, 30 September 2019 8

The ‘Future of Messaging’ market opportunity

Additional differentiators

▪ 10+ chan annels els including: email, SMS, voice, push, MMS etc. ▪ Dir irect ct rela lation tionships ps with mobile

• perators.

▪ Multiple new channel deployme yments. ts.

Disclaimer: diagram based on publicly available information at the time of announcement

1 of 3 te tech chnolog logy y pro rovide viders s appr proved ed by App pple le, Fac acebo book

• k and

d Googl

• ogle

Interim Results Presentation FY20, 30 September 2019 9

Recent deployments show momentum for new communications channels

Apple Business Chat for Vauxhall WhatsApp for npower RCS for Vodafone RCS for EE

Interim Results Presentation FY20, 30 September 2019

Our CX automation product suite

10

CORE BUSINESS SYSTEMS 3rd

rd PARTY SERVICES

TRANSACTION PROCESSING FRAUD MANAGEMENT CASE MANAGEMENT COMMERCE PLATFORM BILLING PLATFORM APPOINTMENT MANAGEMENT DELIVERY / FULFILMENT NAME / ADDRESS VERIFICATION CREDIT CHECK PAYMENTS CRM PLATFORM

APP 2

Platform Layer

Integration set- up & management Business logic & flow

• rchestration

NLP & AI powered conversational automation Communication channel management Intelligent enterprise control Service assurance & infrastructure management

Applications Layer Possible application alternatives/integrations

Interim Results Presentation FY20, 30 September 2019 11

Our products work across three core business areas

Cust stom

• mer

er Servi vice ce & Su Suppor port Cust stom

• mer

er Operation tions s Marketin ting g Autom tomation tion

My boiler has stopped working – I need an engineer I have a suspect transaction on my credit card Reminder that your appointment with Dr. Smith is at 2pm today Your parcel will be delivered between 11:00-13:00 today Would you like to upgrade your data plan? The iPhone 11 is out now – click here to reserve…

Saving £2 milli lion

• n for the

NHS in postal costs by taking a digital-first approach to patient letters. Achieving an overall CSAT score of over er 90% after deployment for British Gas. Generating £250 250 milli lion revenue for O2 per year through marketing comms.

Interim Results Presentation FY20, 30 September 2019 12

How our products work together provides competitive differentiation

Customer receives message through IMIca campa mpaign – this could be over any channel Customer clicks link and UI switches to Apple Business Chat using IMIcon Iconne nect ct Customer is transferred to IMIcha chat for agent support – this could be a third party contact centre system

Bill shock prevention using Apple Business Chat

Interim Results Presentation FY20, 30 September 2019

Financial Highlights

Interim Results Presentation FY20, 30 September 2019

Strong growth in all financial metrics

14

Year ended ed Sep-19 19 £m £m Sep-18 18 £m £m Growth th %

Revenue 83.0 67.2

+24%

Gross profit 35.2 29.2

+21%

Administrative expenses (excluding D&A) (25.4) (21.5)

+18%

Adjusted EBITDA 9.8 7.7

+27%

EBITDA margin* 28.0% 26.4% Adjusted profit after tax 5.2 4.7

+12%

Adjusted diluted EPS 6.9p 6.6p

+5%

Cash & cash equivalents 16.4 13.2

24%

*EBITDA margin = EBITDA/Gross Profit

5-year Revenue CAGR 5-year Gross Profit CAGR 5-year EBITDA CAGR

+21% +21% +31%

Interim Results Presentation FY20, 30 September 2019

Quality of earnings

15 Volume of e-mail, SMS, MMS, push notification, sessions etc. Licences & one-off prof. services Contracted revenues Fixed fees Usage based Transactional Non recurring

90% Monthly Recurring Revenue

(MRR) Fees based

• n

revenue transactions

Impact of capitalisation and amortisation Well diversified Approximate gross profit split Longstanding customer relationships

FY20

Gross profit split (by region)

FY19

25% 50% 15% 10%

Average customer tenure Top 10 customers Top 20 customers Percentage of gross profit

9.8 years 8.0 years

33% 48%

H1 20 excludes the impact of IFRS16 4.1 4.0 3.3 4.1 4.0 2.7 5.9 5.6 4.3 6.5 6.1 5.1 PBT as reported 7 yr amortisation PBT assuming 5 yr amortisation EBITDA less capex H1 17 H1 18 H1 19 H1 20

Interim Results Presentation FY20, 30 September 2019

Trade payables and accruals increase also attributable to 3C

Strong balance sheet

16

Assets Sep-19 £m Mar-19 £m Cash Trade receivables Pass through revenues Other current assets 16.4 39.1 2.9 8.0 13.2 41.2 3.3 6.2 Curre rent nt ass ssets ts 66.4 63.9 Goodwill Acquired intangibles Other intangible assets PPE Other non-current assets 69.6 39.3 14.4 7.6 1.9 43.6 16.8 12.8 4.3 0.6 Non-curre current nt ass ssets ts 132. 2.8 78.1 Tota tal ass ssets ts 199. 9.2 142.0 2.0 Net asse sets ts 78.9 60.1 Liabilities Sep-19 £m Mar-19 £m Trade payables and accruals Pass through revenues Other current liabilities 40.3 4.7 24.1 34.1 5.1 18.6 Curre rent nt liabi bilitie ties 69.1 57.8 Non-curre current nt liabi bilitie ties 51.2 24.1 Tota tal liabi bilitie ties 120.3 0.3 81.9

Goodwill and acquired intangible growth from 3C acquisition

Interim Results Presentation FY20, 30 September 2019

High levels of cash conversion

17

Period ended Sep-19 £m Sep-18 £m Adjusted cash generated from

• perations

12.5 6.1 Net cash from operations 10.4 5.0 Investing activities (44.0) (20.1) Financing activities 36.4 11.3 Cash and cash equivalents at beginning of period 13.2 15.7 Foreign exchange on opening balances 0.4 0.1 Cash sh and d cash sh equiva valents ts at end d

• f perio

riod 16.4 12.0 Period ended Sep-19 £m Mar-19 £m Cash 16.4 13.2 Borrowings (38.2) (20.7) Net (debt bt)/ca cash sh (21. 1.8) 8) (7.5) 7.5)

Net cash

£42m debt facility from SVB mix of GBP and USD debt Amortising over 5 years Margin payable of ~2.5% + LIBOR

Interim Results Presentation FY20, 30 September 2019

Regional overview – Europe

18

The AA The AA The AA The AA The AA

▪ Revenue £57.2m (2018: £46.6m) ▪ Gross profit £19.1m (2018: £17.3m); ▪ 10% organic gross profit growth ▪ Gross margin 33.4% (2018: 37.2%)

Financials Operational highlights

▪ MRR growth in each of our key business units. ▪ Launched RCS for customer bases of three major UK operators. ▪ Multiple contract wins within the enterprise sector. ▪ UK Healthcare division continues to perform well with communications volumes up over 20%. ▪ Our product in the SMB segment, Textlocal, continued to grow strongly with record trading months. ▪ Momentum gained through established partnerships. ▪ Post-period end acquisition of Rostrvm, UK based, contact-centre provider for additional voice channel and contact centre capabilities.

FY16 FY17 FY18 FY19 FY20

MRR NRR

H1 Gross Profit (£m)

9.4

6.

10.0 13.2 17.3 19.1

Interim Results Presentation FY20, 30 September 2019

Regional overview – Americas

19

The AA

▪ Revenue £8.3m (2018: £4.4m) ▪ Gross profit £5.8m (2018: £3.0m) ▪ 4% organic gross profit growth ▪ Gross margin 70.0% (2018: 62.1%)

Financials Operational highlights

▪ Following round of successful equity fundraising of £20 million and increased debt facilities, completed acquisition of 3Cinteractive in August 2019 which: ▪ Strengthened operational capabilities in region ▪ Established Group as global leader for RCS Business Messaging ▪ Strengthened regional management team ▪ Existing Americas business continued to perform well, driven by increasing messaging volume in the Canadian market from both existing and new customers. ▪ Confident we have the necessary experience, scale and strength of

• ffering to drive significant growth in the largest addressable market for our

product set.

FY16 FY17 FY18 FY19 FY20

MRR NRR

H1 Gross Profit (£m)

0.5 0.6 0.6 3.0 5.8

Interim Results Presentation FY20, 30 September 2019

FY16 FY17 FY18 FY19 FY20

MRR NRR 4.5 6.7 5.6 4.6

Regional overview – MEA and APAC

20

Middle East & Africa Asia Pacific

Gross Profit £5.0m (2018: £4.6m) Gross Profit £5.3m (2018: £4.3m)

▪ Good organic gross profit growth of 10%. ▪ After period of headwinds, the operator segment has now stabilised. ▪ Success developing new business in the UAE.

H1 Gross Profit (£m) H1 Gross Profit (£m)

5.0

FY16 FY17 FY18 FY19 FY20

MRR NRR 2.2 2.9 5.3 4.3 5.3

▪ Strong organic gross profit growth of 22%. ▪ New enterprise customers such as Hyundai, Britannia & Skoda using WhatsApp Business. ▪ Textlocal India experienced significant year on year growth, onboarding 6,000 new customers.

Interim Results Presentation FY20, 30 September 2019

Growth Strategy

Interim Results Presentation FY20, 30 September 2019 22

22

Growth strategy

1 2 3 4

Accelerate market penetration through partnerships Grow our share of interactions for existing customers Introducing new innovative customer engagement technologies Leverage acquisitions for market distribution

+ +

52 custom tomers rs ove ver r £500k 0k p.a. revenue, up from 43 last year. 376 custom tomers rs ove ver r £25k k p.a. revenue, up from 316 last year.

Interim Results Presentation FY20, 30 September 2019

Introducing new innovative customer engagement technologies

23

Interim Results Presentation FY20, 30 September 2019 24

Our latest acquisition: 3Cinteractive Corp

The RCS opportunity Progress & outlook Acquisition rationale 81 global operators have currently launched RCS, with an additional 27 operator launches forecast by Q1 2020. Consumers will engage with at least one brand,

• nce a day by 2023 using RCS.

▪ Leading RCS solutions provider in US ▪ Over 300 clients ▪ Direct connectivity to all major US mobile operators ▪ Delivering >1billion transactions per month ▪ >90% recurring & repeating revenues ▪ North American operations merged under one

• rganisational structure.

▪ Initial training workshops on Group product set completed. ▪ Good existing client workshops held and significant cross-sell

• pportunities identified and

progressing.

Interim Results Presentation FY20, 30 September 2019 25

Results of RCS

▪ Initial customer engagement rates for RCS significantly higher than SMS. ▪ For a Vodafone promotional campaign; 80% 80%

• f customers read the message, and 25%

responded to the offer. SMS and MMS scored a response rate of around 1% 1%. ▪ Customers prefer the RCS experience to SMS too.

Interim Results Presentation FY20, 30 September 2019 26

Post period acquisition: Rostrvm

▪ UK based, contact centre provider for a consideration of up to £3.5 million ▪ Providing Group with additional voice channel & contact centre capabilities ▪ Strong public sector customer synergies ▪ Complementary strategic reseller partnerships with mobile operators

Interim Results Presentation FY20, 30 September 2019

Outlook

27

▪ Board encouraged by strong first half of the year, delivering growth in all regions ▪ Structural growth opportunity in customer communications ▪ Group well positioned to continue to deliver on its strategic priorities ▪ FY20 trading in line with management expectations

Interim Results Presentation FY20, 30 September 2019

London

IMImobile Europe Ltd. 5 St John’s Lane London EC1M 4BH United Kingdom

Hyderabad

IMI Mobile Pvt. Ltd Plot No. 770 Road No. 44 Jubilee Hills Hyderabad – 500 033

Dubai

IMImobile VAS Ltd. FZE P.O. Box 293593 Office # 624, Building 5EA Dubai Airport Free Zone, Dubai, U.A.E

Boca Raton

IMImobile North America 750 Park of Commerce Blvd #400 Boca Raton, Florida 33487 USA

Johannesburg

IMImobile South Africa Clearwater Office Park, Building no. 3, First Floor. Corner Christiaan De Wet and Millennium Boulevard, Strubensvalley, Roodepoort, Gauteng, South Africa

Theale

IMImobile Europe Ltd. Abbey House 1650 Arlington Business Park, Theale RG7 4SA United Kingdom

High Wycombe

IMImobile Europe Ltd. Swan House White Hart Street High Wycombe HP11 2HL United Kingdom

Toronto

IMImobile Canada 4 King Street West Suite 1700 Toronto, Ontario M5H 1B6 Canada

Thank you

Interim Results Presentation FY20, 30 September 2019

Appendices

Interim Results Presentation FY20, 30 September 2019 30

Global client list FY20

Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo

Significant clients with billing of >£100k revenue

Interim Results Presentation FY20, 30 September 2019

An experienced management team

31

Jay y Pate tel

Group CEO

18 years with IMImobile 25+ years of Technology, Media & Telecom experience with BSkyB, UBS Warburg, Spark Ventures Chartered Accountant with KPMG and MBA from INSEAD

Mike ke Jefferies ries

Group CFO

9 years at IMImobile Executive position at WIN PLC and formerly with the Whirlpool Corporation Chartered Management Accountant

Vishwa hwana nath th Alluri

Founder & Non-Executive Director

Extensive experience in creating technology companies Chartered Accountant & Company Secretary

Shya yam m Bhat hat

Founder & Group CTO

Engineer from highly prestigious Indian Institute of Technology, Bombay 30+ years in engineering & new product developments

John hn Allwood

Non-Executive Chairman

Ex Chief Executive of Orange UK Ex Chief Executive of Mirror Group plc of Non-Executive Director of TalkTalk

Simon n Blagde den n CBE

Non-Executive Director

25+ years experience in telecoms & IT industry Non-Executive Chairman Fujitsu UK Chairman Duke of York’s Community Initiative charity