IMImobile PLC Preliminary Results Year Ended 31 March Jay Patel, Chief Executive Mike Jefferies, Group Finance Director

Transcription

1 IMImobile PLC Preliminary Results Year Ended 31 March 2016 Jay Patel, Chief Executive Mike Jefferies, Group Finance Director

2 IMImobile is an established software provider Helping companies to engage with their customers on digital channels 16 years experience in mobile Delivering services in 60+ countries from cloud infrastructure Profitable and cash generative for more than 10 years Offices in London, Atlanta, Dubai, Hyderabad and Johannesburg 780+ employees worldwide with a track record of international service delivery operating in fast growing markets Rapid growth of smartphone usage globally Customers increasingly demand mobile experiences Companies recognise they need to invest in mobile and digital Delivery of multi-channel communication, across multiple organisation departments and in different geographies is complex for our clients worldwide* 2003 First products sold in India and $1m revenue 2007 Internationalisation began 2010 Acquisition of WIN plc (AIM listed) 2012 IBM licensed IMIdigital in 17 countries 2014 AIM Listing and acquisition of Textlocal 2015 Acquisition of Archer Digital and launch of Textlocal in India * Top 21 clients by revenue 2

3 Key operational, financial and strategic progress across all business units Operational Highlights Organic growth from all regions and business units New major client wins in all regions Renewal of all major contracts falling due in the period Rebranding and simplification of product suite Strategic Highlights Launched Textlocal in India Acquisition of Archer Digital (September 2015) Continued growth in US Investment in SaaS products Financial Highlights Revenue up 26% to 61.6m (organic 11%) (2015: 48.9m) Gross profit up 22% to 36.5m (organic 10%) (2015: 30.0m) EBITDA up 17% to 10.7m (2015: 9.2m) Adjusted profit after tax up 21% to 6.8m (2015: 5.6m) Strong EBITDA to cash conversion of 99% (2015: 96%) Cash and equivalents of 15.0m (2015: 14.6m) Diluted adjusted EPS growth of 13% to 10.4p (2015: 9.2p) 3

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

5 Shift towards mobile customer engagement Rapidly changing consumer behaviour Mobile sits at the heart of customer experiences Huge technology disruption There will be 8.6b mobile connections by 2020 The smartphone has changed the way people communicate, shop and consume media. 84% of companies focus on improving customer experience Companies will win or lose their customers based on the customer experience they provide. 90% of CEOs believe digital disruption will impact their industry Technology disruptors are free of traditional ways of doing business and legacy cultures. 5

6 But delivering mobile communication is expensive and complex Challenge to scale and deliver enterprisegrade multichannel services for mobile across legacy systems Explosion of channels combined with device and messaging proliferation Enterprises Sales Systems Marketing Systems Complex integration No single point of orchestration Multiple channel vendors & APIs Operations Systems Support Systems Enterprises across different industry sectors 6

7 We simplify channel complexity and help orchestrate mobile customer interactions Challenge to scale and deliver enterprisegrade multichannel services for mobile across legacy systems Explosion of channels combined with device and messaging proliferation Enterprises Sales Systems Product portfolio built on our global cloud infrastructure Appointment Reminders Bank Alerts Marketing Systems Delivery Notifications Operations Systems Support Systems Live chat Music & video content Enterprises across different industry sectors 7

8 Our global cloud infrastructure supports billions of mobile interactions Financial Services Utilities Retail Healthcare IMIcloud Public Sector Contact Centre Logistics Travel Enterprise cloud comms platform enabling IT to create & deliver multi-channel customer journeys Real-time, interactive multichannel campaigns at each point of the customer life cycle Content management and digital service delivery platform application, utilised across the world Application for two-way interactive text based messaging in contact centres Enables broadcasters to centralise, manage and interact with audiences via social media A cloud-based platform that enables businesses of any size to harness the power of SMS messaging. 13 billion messages p.a services deployed 14 billion billing transactions p.a. 10,000+ device fingerprints in DB 15 billion voice flows p.a. Connectivity Intelligent Network Gateways Payments Device Optimisation Voice Gateway 24/7 Global Managed Service Infrastructure Private cloud co-located in five Tier 3 and Tier 4 data centres across UK, US and India. Global scalability Potential for operational leverage 8

9 Commercial Model & Revenue Split High percentage recurring revenues.

10 Commercial model Gross Profit Split* 15% 40% 35% 10% Fixed fees Usage based Transactional Non recurring Contracted revenues Volume of , SMS, MMS, push notification, sessions etc. Fees based on revenue transactions Licences & one-off professional services Monthly Recurring Revenue (MRR) *Approximate split 10

11 An experienced leadership team Europe & Americas Snr Mgmt. Team Av. 7+ years with IMImobile IT & Service Delivery Team 50+ years industry experience Av. 6+ years with IMImobile 40+ years industry experience Regional commercial and service delivery teams Central product management, development & infrastructure and marketing Over 200 years combined industry experience Executive team has been with IMImobile for over 8 years Marketing Team Av. 5+ years with IMImobile 40+ years industry experience APAC Snr Mgmt. Team Av. 11+ years with IMImobile 70+ years industry experience MEA Snr Mgmt. Team Av. 7+ years with IMImobile 30+ years industry experience Major office locations 56% of revenue from Europe and US 28% of revenue from Middle East & Africa 16% of revenue from India and SE Asia 11

12 Financial Results Year ending 31 st March 2016.

13 Key financial highlights Trading Performance Gross Profit Split Year ended 31 March 2016 m 31 March 2015 m Growth % Revenue % Gross profit % Gross margin 59.3% 61.4% Administrative expenses (25.1) (18.8) +33% EBITDA % Adjusted profit before tax* % Adjusted profit after tax* % Diluted adjusted EPS 10.4p 9.2p +13% * Before share based payments, amortisation of acquired intangibles, impairment of investments and exceptional costs 13

14 Key financial highlights Balance Sheet Assets Cash Trade receivables Pass through revenues Other current assets Mar-16 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 Mar-16 m Mar-15 m Current liabilities Non-current liabilities Total liabilities No debt Strong cash position High quality receivables 14

15 Key financial highlights Cashflow Year to Mar-16 m Mar-15 m Cash generated from operations Net cash from operations Investing activities (8.5) (33.0) Financing activities Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period % conversion of EBITDA to cash generated from operations 3.6m used for the purchase of Archer Cash available for acquisitions or share buy backs 15

16 Regional Updates Trading updates for our regions.

17 Regional Overview Europe & Americas Business Drivers 74% of executives have or will complete digital transformation in the next 5 years (CIO Insight) 88% of organisations will increase technology investments to improve customer experience (Gartner) Digital continues to disrupt, by % of total sales will be influenced by digital (Forrester) Europe & Americas gross profit ( m) Financial and Operational Highlights FY13 FY14 FY15 FY16 Gross profit 19.9m (2015: 16.4m) Strong gross profit growth by 22% year on year, 9% organic Gross profit growth from Textlocal above 10% New significant client wins across several industry sectors Renewed all significant contracts Retained market position of number one UK carrier billing provider MRR Licence / one-off / professional services * Top 10 clients by revenue 17

18 Regional Overview Middle East & Africa Business Drivers MEA gross profit ( m) Only a third of adults have access to bank accounts (Frost and Sullivan) One in five Africans have bought a product or service with their mobile phone (Deloitte) Africa s entertainment and media industry is expected to grow from R112.7 billion in 2014 to R176.3 billion in 2019 (PwC) 4.3 Financial and Operational Highlights FY13 FY14 FY15 FY16 Gross profit 11.4m (2015: 8.6m) MRR gross profit increased organically by 58% Overall organic year on year gross profit growth was 15% Regional gross profit growth of 33% (including Archer Digital) IMIdigital and IMIcampaign deployed with leading mobile operator groups Acquisition of Archer Digital to support international growth plans Integration of Archer s technology and products MRR Licence / one-off / professional services * Top 10 clients by revenue 18

19 Regional Overview India & SE Asia Business Drivers India overtakes China as world's fastest growing major economy (Telegraph) India is expected to become the largest contributor of absolute smartphone unit growth globally this year Indian SaaS market worth c$400m in FY16 and forecast to grow 3x by 2020 (Nasscom) 8.3 India & SEA gross profit ( m) Financial and Operational Highlights FY13 FY14 FY15 FY16 Gross profit 5.3m (2015: 5.0m) Return to growth with gross profit increase of 4% New contract signed in Myanmar and new deployment in Nepal Renewed a number of multi-year contracts with several major operators Successfully launched Textlocal in India (1,500 customers in 6 months) Selected partner of BBC Media Action and The Gates Foundation MRR Licence / one-off / professional services * Top 10 clients by revenue 19

20 Growth Strategy & Outlook A fast growing business.

21 Key areas of focus for growth Organic Growth Existing Customers 70 clients with revenue > 100k 20 clients with revenue > 500K 11 clients with revenue > 1m omobile and digital transformation becoming a business imperative odrive further revenue and profit growth from existing customers Channel Strategy Product Innovation Geographic Expansion Invest in channel strategy and launch reseller and partnership programme to maximise product distribution and revenue growth Drive new product innovation through continued investment in existing product set Maximise strategic opportunity in selected geographic markets in US and Myanmar Inorganic Growth M&A Selective acquisition of businesses following a strict acquisition criteria (recurring relationships with large blue-chip corporates, complementary product sets, existing geographic locations) 21

22 Summary and outlook o Strong and profitable Group performance o Successful acquisitions and controlled investment strategy o Well positioned in a growing technology market o FY 2017 has started well with trading in line with Directors expectations 22

23 Locations London Atlanta Dubai Hyderabad IMImobile Europe Ltd 5 St Johns Lane EC1M 4BH London United Kingdom IMImobile Inc Tower Place 200 Atlanta, GA United States IMImobile VAS Ltd FZE 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: europe.sales@imimobile.com Phone: america.sales@imimobile.com Phone: mea.sales@imimobile.com Phone: apac.sales@imimobile.com Johannesburg Clearwater Office Park, Building no. 3, First Floor. Corner Christiaan De Wet and Millennium Boulevard, Strubensvalley, Roodepoort, Gauteng, South Africa Phone: contactus@imimobile.com 23

24 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.