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IMImobile PLC Interim Results Overview Financial Year 2016
Jay Patel – Chief Executive Mike Jefferies – Group Finance Director
Interim Results FY16
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 are
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
What we do
Who we do it for
IMImobile Introduction
1
Interim Results FY16 3
Key Trading Highlights - 6 months to 30 September 2015
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 (2014 £2.3m) o Cash and equivalents of £13.5m (£14.6m Mar 2015)
o £3.4m utilised for Archer Digital acquisition
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
Operational Highlights
Financial Highlights H1 Gross Profit £m
11.2 12.7
13.5
16.6
0.0
5.0
10.0
15.0
20.0
FY13 FY14 FY15 FY16
2.5
3.4 3.8
4.5
0.0
1.0
2.0
3.0
4.0
5.0
FY13 FY14 FY15 FY16
H1 EBITDA £m
2
Markets, Products & Technology Building IP, innovating for growth.
Interim Results FY16 5
Mobile Channels Transforming
the way organisations engage with customers
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)
Africa – Smartphone connections to triple by 2020 to 230m (MMA)
UK – Smartphone most effective channel for marketing – 53% of email
opened on mobile (MMA) Global multi-billion $ market
opportunity
CIO and CMO priority – supporting mobile across the customer life cycle
IT will spend $130b on mobile engagement platforms in 2017
(Forrester)
High mobile channel growth – the key factor in serving and retaining
customers
Marketing moving to targeted multi-channel marketing vs ‘push’
Market Summary - mobile driving the biggest change since the web
Market Trends Business Imperative
3
Interim Results FY16 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
Interim Results FY16
IMImobile Product Portfolio Explained
What it does Relevance Who we do it for
Real-time, interactive multi-channel campaigns at each
point of the customer life cycle
Creation of personalised contextual marketing across
channels versus ‘push’ based communications
Content management and digital service delivery platform application, utilised across the
world
Mobile content consumption is growing and providing new
revenue streams
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
Managing ten’s of millions of multi-channel campaign messages per month
Automation of 16 customer journeys, Multi-million £ savings
Over 60 digital deployments, supported by 6 global data hubs
5
Interim Results FY16
What it does Relevance Who we do it for
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
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
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
Mobile loyalty channel promotions
80% of BBC radio UK audience interaction is via social channels
Operational efficiency gains of 30-40%. Increased call completion,, alk-time
6
IMImobile Product Portfolio Explained
Interim Results FY16 9
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
o Enterprise version launch - currently in use with select clients o Self-service portal for 2016 o Increasing support and coverage of OTT channels
o Tier 1 bank, telecoms provider and utility o Bank - eStatements switch / mobile mortgage surveys o Interactive contact centre messaging o Field-force management
Faster Digitisation of Customer Journeys
Overview
Innovation
Client Examples
7
Interim Results FY16 10
o Cross-channel, real-time marketing campaign automation o Personalised and contextual – SMS, MMS, email, web portal services o Real-time interactivity and analytics across the customer lifecycle
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
o EE - Consumer ‘base marketing’ o O2 - Delivering 800 million customer interactions,
supporting over 700 multi-channel campaigns per year
Contextual Marketing for the Customer Lifecycle
Overview
Innovation
Client Examples
8
Interim Results FY16 11
o Content services continue to generate significant revenues o Hosted digital download portals o Payment gateways o Content management, reporting and delivery
o Development of new music streaming capabilities o Record label music promotions – fulfilment and hosting o Direct to consumer retail services across certain markets
o Warner Music – Muse promotional redemption portal service • Content management, delivery and payments
o Universal/Trace Mobile – Music streaming services
Intelligent Management and Delivery of Digital Content
Overview
Innovation
Client Examples
9
Interim Results FY16 12
TextLocal – Strong Performance Since Acquisition
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
Highlights
10
Regional Updates Trading updates for our regions.
Interim Results FY16
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
14
Regional Overview – Europe & Americas
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
Operational Highlights
Financial Highlights
5.5 6.6
9.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
FY14 FY15 FY16
Managed Solutions SaaS Licence
11
Interim Results FY16 15
Regional Overview – Middle East & Africa
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
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 15
Operational Highlights
Financial Highlights
15
H1 Gross Profit £m
4.1 4.4 4.5
0.0
1.0
2.0
3.0
4.0
5.0
FY14 FY15 FY16
Managed Solutions SaaS Licence
12
Interim Results FY16 16
Acquisition – Growth Opportunity
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
o Standard bank collections and home loan notifications o Nedbank - MMS Statements as part of their “going green” initiative
• Significant cost savings
Success Stories
Acquisition Highlights
13
Interim Results FY16 17
Regional Overview – India & SE Asia
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
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
Operational Highlights
Financial Highlights
17
H1 Gross Profit £m
3.1
2.5 2.2
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
FY14 FY15 FY16
Managed Solutions SaaS Licence
14
Financial Results 6 months ending 30 September 2015.
Interim Results FY16 19
Key Financial Highlights
Six months to Sep-15 £m
Sep-14 £m
Growth %
Revenue 27.8 21.5 +29%
Cost of sales (11.3) (8.0) +40%
Gross profit 16.6 13.5 +23%
Administrative expenses (13.2) (10.8) +22%
Operating profit 3.4 2.7 +25%
EBITDA 4.5 3.8 +20% Opex investment in sales, marketing and product management
Trading Performance Gross Profit Split
15
Interim Results FY16 20
Key Financial Highlights
Assets Sep-15 £m
Mar-15 £m
Cash Trade receivables Pass through revenues Other current assets
13.5 15.1 2.8 4.3
14.6 12.4 3.1 4.2
Current assets 35.7 34.3
Goodwill Acquired intangibles Other intangible assets PPE Other non-current assets
19.9 2.6 1.1 4.4 1.0
17.9 0.7 1.0 4.3 1.2
Non-current assets 29.0 25.1
Total assets 64.7 59.4
Net Assets 41.2 38.9
No debt
Over 90% of receivable with tier 1 clients*
Strong cash position
Liabilities Sep-15 £m
Mar-15 £m
Trade payables and accruals Pass through revenues Other current liabilities
14.2 4.4 4.5
11.3 5.2 3.6
Current liabilities 23.1 20.1
Non-current liabilities 0.4 0.4
Total liabilities 23.5 20.5
* Banking, mobile operator, utility providers, broadcasters and major retailers
Balance Sheet
16
Interim Results FY16 21
Key Financial Highlights
Six months to Sep-15 £m
Sep-14 £m
Net cash from operations 3.8 1.7
Investing activities (4.7) (24.0)
Financing activities 0.0 30.0
Cash and cash equivalents at beginning of period
14.6 9.3
Cash and cash equivalents at end of period
13.5 16.9
84% conversion of EBITDA to cash from operations
£3.6m used for the purchase of Archer
Strong cash position
Cashflow
17
Summary & Growth Strategy
Interim Results FY16
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
Strong 6 Month Performance
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
Growth Strategy and Outlook
Summary & Outlook
18
Interim Results FY16
Dubai IMImobile PVAS Ltd P.O. Box 293598 Office # 624, Building 5EA Dubai Airport, U.A.E. Phone: +971 46091 690 [email protected]
Atlanta IMImobile Inc. Tower Place 200 Atlanta, GA 30326 United States Phone: +1 470 216 1984 [email protected]
London IMImobile Europe Ltd 5 St Johns Lane EC1M 4BH London United Kingdom Phone: +44 20 300 86232 [email protected]
Hyderabad IMImobile Pvt. Ltd Plot No. 770, Road No 44 Jubilee Hills Hyderabad India Phone: +91 40 23 555 945 [email protected]
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.