IMImobile PLC Interim Results Overview Financial Year Jay Patel Chief Executive Mike Jefferies Group Finance Director

Transcription

1 IMImobile PLC Interim Results Overview Financial Year 2016 Jay Patel Chief Executive Mike Jefferies Group Finance Director

2 IMImobile Introduction Who we are o Software and services business with wholly owned IP o Founded in 2000, UK based with over 750 employees word-wide o Listed on LSE AIM in 2014 o Profitable and cash generative since foundation o Acquired TextLocal (UK) in 2014 & Archer Digital (SA) in 2015 o HQ in London, offices in Atlanta, Dubai, Hyderabad & Johannesburg Who we do it for What we do o Help organisations to rapidly create and deploy mobile user journeys to reduce service delivery costs, improve marketing and generate new revenue streams o Intelligent software layer between existing IT systems, business processes and customer engagement touch points across digital and social channels o Recurring revenue business model o More than 130 deployments across 60 territories 1

3 Key Trading Highlights - 6 months to 30 September 2015 Financial Highlights H1 Gross Profit m o Revenue up 29% to 27.8m ( 21.5m in 2014) o Gross profit up 23% to 16.6m ( 13.5 in 2014) o EBITDA up 20% to 4.5m ( 3.8m in 2014) o Adjusted profit after tax up 19% to 2.7m ( m) o Cash and equivalents of 13.5m ( 14.6m Mar 2015) o 3.4m utilised for Archer Digital acquisition Operational Highlights o Continued strong performance in Europe o Strong TextLocal performance since acquisition o Growth and renewal of largest customer contracts in MEA region o Completion of Archer Digital acquisition in South Africa o Investment in product development, sales and marketing o Several industry awards for multi-channel marketing campaigns FY13 FY14 FY15 FY H1 EBITDA m FY13 FY14 FY15 FY16 2 3

4 Markets, Products & Technology Building IP, innovating for growth.

5 Market Summary - mobile driving the biggest change since the web Market Trends Business Imperative US 30 billion mobile moments per day in 2015 (Forrester) 30-45% of customers want to use mobile for customer service, less than 5% of companies use mobile effectively (Gartner) Mobile Channels Transforming the way organisations engage with customers CIO and CMO priority supporting mobile across the customer life cycle IT will spend $130b on mobile engagement platforms in 2017 (Forrester) Africa Smartphone connections to triple by 2020 to 230m (MMA) High mobile channel growth the key factor in serving and retaining customers UK Smartphone most effective channel for marketing 53% of opened on mobile (MMA) Global multi-billion $ market opportunity Marketing moving to targeted multichannel marketing vs push 3 5

6 IMImobile Product Portfolio Application products (Applications) outline the usability, functionality and consumption models for end users. IMIconnect platform provides the software foundation and exposes functionality upon which services, applications and solutions are built. IMIcloud provides the technology enablers, connectivity and secure, highly scalable infrastructure upon which products and solutions run. 4 6

7 IMImobile Product Portfolio Explained What it does Relevance Who we do it for Enterprise cloud comms platform enabling IT to create & deliver multi-channel customer journeys Toolset enabling IT to rapidly build, manage and monitor communications enabled services Automation of 16 customer journeys, Multi-million savings Real-time, interactive multichannel campaigns at each point of the customer life cycle Creation of personalised contextual marketing across channels versus push based communications Managing ten s of millions of multichannel campaign messages per month Content management and digital service delivery platform application, utilised across the world Mobile content consumption is growing and providing new revenue streams Over 60 digital deployments, supported by 6 global data hubs 5

8 IMImobile Product Portfolio Explained What it does Relevance Who we do it for Application for two-way interactive text based messaging in contact centres Better integration of mobile as a service channel in contact centres, applicable across industries Operational efficiency gains of 30-40%. Increased call completion,, alk-time Enables broadcasters to centralise, manage and interact with audiences via social media Social media is now used as a standard mobile interaction channel across broadcast audiences 80% of BBC radio UK audience interaction is via social channels Small to Medium Business mobile marketing & messaging SaaS platform Purpose built for SMBs with market leading technology, strong fit with operator SMB models Support desk notification service Mobile loyalty channel promotions 6

9 Faster Digitisation of Customer Journeys Overview o Global connectivity over voice and messaging channels o Easy to use drag and drop workflow design o Complete service management dashboards o Fast and cost effective service creation, delivery and management Innovation o Enterprise version launch - currently in use with select clients o Self-service portal for 2016 o Increasing support and coverage of OTT channels Client Examples o Tier 1 bank, telecoms provider and utility o Bank - estatements switch / mobile mortgage surveys o Interactive contact centre messaging o Field-force management 7 9

10 Contextual Marketing for the Customer Lifecycle Overview o Cross-channel, real-time marketing campaign automation o Personalised and contextual SMS, MMS, , web portal services o Real-time interactivity and analytics across the customer lifecycle Innovation o Location based targeting of campaigns Geo-targeting o Automated A/B+ testing by channel and demographics o New IMIcampaign self-service version o New customer care portal Client Examples o EE - Consumer base marketing o O2 - Delivering 800 million customer interactions, supporting over 700 multi-channel campaigns per year 8 10

11 Intelligent Management and Delivery of Digital Content Overview o Content services continue to generate significant revenues o Hosted digital download portals o Payment gateways o Content management, reporting and delivery Innovation o Development of new music streaming capabilities o Record label music promotions fulfilment and hosting o Direct to consumer retail services across certain markets Client Examples o Warner Music Muse promotional redemption portal service Content management, delivery and payments o Universal/Trace Mobile Music streaming services 9 11

12 TextLocal Strong Performance Since Acquisition Highlights o Continued strong growth o Record sales, active users and volumes o New marquee clients added o TextLocal launch in India strong customer acquisition in 3 months o Strong revenue trajectory o Growing reseller channel with mobile operators 10 12

13 Regional Updates Trading updates for our regions.

14 Regional Overview Europe & Americas Financial Highlights o Responsible for 60% of Group gross profit o 17% organic gross profit growth o More than 40% organic growth over the last 2 years o Gross margin of 59% versus 57% in the previous year Operational Highlights o Strong growth in IMIconnect and IMIcampaign products o Good TextLocal growth in its first year as part of IMImobile o Largest tier 1 banking contract renewed, plus utilities clients o Client base growth in US market o Growing pipeline of opportunities in the US and Europe H1 Gross Profit m FY14 FY15 FY16 Managed Solutions SaaS Licence 11 14

15 Regional Overview Middle East & Africa Financial Highlights o Responsible for 27% of Group gross profit o 56% organic gross profit growth of managed services o Gross margin of 73% versus 81% in the previous year reflecting lower licence revenues H1 Gross Profit m Operational Highlights o Increasing penetration of content services for customers MTN & Orange o Renewal of largest customer contracts in region o New deployments on existing Group contracts o New customers and initiatives o Completion of Archer Digital acquisition in Sept FY14 FY15 FY16 Managed Solutions SaaS Licence

16 Acquisition Growth Opportunity Acquisition Highlights o Acquisition completed in Sept 2015 ( 3.6m) o Global leader in MMS communication and marketing solutions o Based in Johannesburg 50 people o Banking sector specialists Success Stories o Standard bank collections and home loan notifications o Nedbank - MMS Statements as part of their going green initiative Significant cost savings 13 16

17 Regional Overview India & SE Asia Financial Highlights o Responsible for 13% of Group gross profit o 11% gross profit decline resulting from monthly run rate reduction in prior year o Gross margin of 45% versus 54% in the previous period reflects increased SaaS sales to enterprise base Operational Highlights o Multiple contract wins and new deployments expected to contribute strongly to H2 performance o New emerging enterprise opportunities for IMIcampaign o Launch of TextLocal India has been well received o Future growth from SaaS and managed service delivery models o BBC and Bill & Melinda Gates Foundation rural health education initiative H1 Gross Profit m FY14 FY15 FY16 Managed Solutions SaaS Licence

18 Financial Results 6 months ending 30 September 2015.

19 Key Financial Highlights Trading Performance Gross Profit Split Six months to Sep-15 m Sep-14 m Growth % Revenue % Cost of sales (11.3) (8.0) +40% Gross profit % Administrative expenses (13.2) (10.8) +22% Operating profit % EBITDA % Opex investment in sales, marketing and product management 15 19

20 Key Financial Highlights Balance Sheet Assets Cash Trade receivables Pass through revenues Other current assets Sep-15 m Mar-15 m Current assets Goodwill Acquired intangibles Other intangible assets PPE Other non-current assets Non-current assets Total assets Net Assets Liabilities Trade payables and accruals Pass through revenues Other current liabilities No debt Over 90% of receivable with tier 1 clients* Strong cash position Sep-15 m Mar-15 m Current liabilities Non-current liabilities Total liabilities * Banking, mobile operator, utility providers, broadcasters and major retailers 16 20

21 Key Financial Highlights Cashflow Six months to Sep-15 m Sep-14 m Net cash from operations Investing activities (4.7) (24.0) Financing activities % conversion of EBITDA to cash from operations 3.6m used for the purchase of Archer Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Strong cash position 17 21

22 Summary & Growth Strategy

23 Summary & Outlook Strong 6 Month Performance o Operational progress across all regions o Growth in Managed Services and SaaS recurring revenue o Acquisitions trading in line with expectations o Market drivers and new products creating growth opportunity o Strengthened management, sales and marketing infrastructure Growth Strategy and Outlook o Roll-out of new cloud communications platform in core markets o Targeting SaaS offering to new verticals and roll-out to all existing geographies o Continued investment in North America market to capitalise on competitive dynamics amongst US operators o Integration and cross sell opportunities in acquisitions o Group remains on track to meet market expectations 18

24 Atlanta London Dubai Hyderabad IMImobile Inc. Tower Place 200 Atlanta, GA United States IMImobile Europe Ltd 5 St Johns Lane EC1M 4BH London United Kingdom IMImobile PVAS Ltd P.O. Box Office # 624, Building 5EA Dubai Airport, U.A.E. IMImobile Pvt. Ltd Plot No. 770, Road No 44 Jubilee Hills Hyderabad India Phone: america.sales@imimobile.com Phone: Phone: europe.sales@imimobile.com mea.sales@imimobile.com Phone: apac.sales@imimobile.com

25 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.