Interim Results Presentation FY18, 30 September 2017
IMImobile PLCInterim Results Overview – Six Months Ended 30 September 2017
Jay Patel, Chief Executive Officer
Mike Jefferies, Chief Financial Officer
November 2017
Interim Results Presentation FY18, 30 September 2017 2
IMImobile sits at the heart of digital customer interactions
Who we are What we do Why clients use us
SITASITA
SITASITA
▪ Market leader of cloud communication
software and services for digital
interactions
▪ Profitable and cash generative growth
for more than 10 years
▪ 950+ employees globally, HQ in London,
offices in Atlanta, Dubai, Hyderabad and
Johannesburg
▪ Provide software and tools to help
businesses automate and improve
customer interactions
▪ Enable businesses to use mobile and
digital technologies to communicate
better with customers whilst reducing
costs
▪ Best of breed – over 15 years
experience in managing digital
communication channels
▪ Innovation – strong track record of
delivering innovation for leading
enterprises
▪ Enterprise grade – 24/7 global cloud
managed service infrastructure
Interim Results Presentation FY18, 30 September 2017 3
▪ Revenue up 48% to £53.1m
▪ Gross profit up 22% to £24.7m
▪ EBITDA up 8% to £5.7m
▪ Adjusted profit after tax up 3% to £3.3m
▪ Diluted adjusted EPS up 1% to 4.8p
▪ Cash generated from operating activities of £5.7m
representing operating cash conversion of 100%
Operational Highlights
Financial Highlights
▪ Continued organic growth – 10% organic gross profit growth, the Group has grown organically in every reporting period since IPO in H1 2014
▪ Consolidated UK market position – established leader in digital and mobile notifications in key consumer vertical (financial services, logistics, utilities, telecoms)
▪ Acceleration of partnership activities – new commercial and technical partnerships established (BT, KCOM, NICE inContact)
▪ Strong growth in SEA – deployments under new relationship with Telenor Group progressing well
▪ US investment – signed first enterprise client through reseller agreement with US mobile operators; post period acquisition of Sumotext completed
▪ Synergies from acquisitions starting to progress – cross selling of core IMImobile products to clients of Textlocal, Archer Digital and Infracast
Strong profitable cash generative growth
11.212.7
13.5
16.6
20.2
24.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
FY13 FY14 FY15 FY16 FY17 FY18
H1 Gross Profit £m
2.5
3.43.8
4.5
5.3
5.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY13 FY14 FY15 FY16 FY17 FY18
H1 EBITDA £m
Interim Results Presentation FY18, 30 September 2017
The challenges we help
our clients with
4
How we help
our customers
Interim Results Presentation FY18, 30 September 2017
The challenge of managing digital customer interactions
Disparate legacy
systems
Business
Applications
Communication
Channels
5
Appointment Reminders
Fraud Alerts
Parcel Notifications
Live Chat
Music & video content
FAST CHANGING
TIME CONSUMING
COMPLEX
REGULATIONS
Interim Results Presentation FY18, 30 September 2017
IMIconnect video
6
https://www.youtube.com/watch?v=-tm30YlaZEs
Interim Results Presentation FY18, 30 September 2017
Enterprise cloud communication platform - 24/7 Global Managed Service Infrastructure
IMImobile Cloud Platform & Enablers
Adaptive Intelligence Layer
Real-time, interactive multi-
channel campaigns at each point
of the customer life cycle
Content management and
digital service delivery
platform application
Agent application for two-way
interactive messaging chats in
contact centres
Enables broadcasters to
centralise, manage and interact
with audiences via social media
Enables the automation of customer
queries and actions through omnii-
channel conversations
Our cloud infrastructure supports billions of digital interactions
7
Banks Utilities RetailOperator Public Sector Contact Centre TravelLogistics
IMImobile Cloud Applications
Global MNO Connectivity OTT & IP Messaging Device Database Voice Gateway Payments
Enabler Layer
NLP Machine Learning Context Mapping Libraries
Market leading mobile messaging
platform serving small and
medium size businesses (SMBs)
New integrations
Recognition
Cisco, Genesys, Netcracker
Shortlisted for UK National Innovation
Award 2017 (Virtual Customer Assistant)
Best Cloud Communications Software
Company2017 (TMT Technology Award)
New features
Consent Management for
GDPR compliance
Interim Results Presentation FY18, 30 September 2017 8
We power banking alerts and notifications across all channels
Delivering messaging strategies
for three of the top four UK retail
banking groups.
▪ Over 14 different notifications
▪ Alerts for cash withdrawal, direct debit
account balances, transfer funds etc.
Proactive Alerts &
Notifications
▪ IMIchat used for multi-channel two-way
customer service interactions across SMS
and Facebook Messenger
▪ IMIconnect used across several Line of
Businesses for Fraud Management, Account
Management and e-billing use cases
My BankMy Bank
Customer Self Care
Chatbots on FB
▪ Real time account balances
▪ Transfer funds
▪ Report a stolen card
My Bank
My BankMy Bank
My Bank
Interim Results Presentation FY18, 30 September 2017 9
We enable proactive two way communications for leading utilities
Delivering proactive communication
to avoid inbound calls into Call
Centres for low value enquiries such
as meter readings.
▪ Two-way actionable communication
▪ On customer’s preferred messaging channel
▪ Automated creation of service ticket in underlying system
▪ Sent only during social hours
▪ Conversational approach to improve customer experience
Engineer Bookings &
Appointment Reminders
Meter Reading &
Customer Invoicing
Interim Results Presentation FY18, 30 September 2017 10
We support digital lifestyle services for large mobile operator groups
▪ Live in 20 countries
▪ 100 million charging transactions
▪ 17 million unique users per month
Delivering innovative
entertainment services
▪ Self-care via FB Messenger
▪ 6 different functions, e.g. top-ups
▪ Seamless agent handover via live-chat
Virtualising network
capabilities and services
Deploying new customer
self-care solutions
Helping mobile operators to
utilise digital communication
channels to optimise
customer experience for rich
digital content services.
▪ Cloud Digital Service Delivery Platform
▪ VAS Virtualisation System and services
Interim Results Presentation FY18, 30 September 2017 11
Investing in AI, automation and new communication channels
Chatbot - Customer Service
Automation
RCS - The Next-generation
Messaging Standard
AI & NLP - Conversational
Customer Engagement
Interim Results Presentation FY18, 30 September 2017
Financial ResultsSix months ending 30 September 2017
12
Interim Results Presentation FY18, 30 September 2017
Commercial model
20% 40% 25% 15%Fixed fees Usage based Transactional Non
recurring
Monthly Recurring Revenue(MRR)
Gross Profit Split*
Volume of e-mail, SMS, MMS,
push notification, sessions etc.Licences & one-off professional
services
Contracted revenues
Fees based on revenue transactions
~85%
13
*Indicative Gross Profit Split
Interim Results Presentation FY18, 30 September 2017
Strong financial performance (Financial Results Six Months Ended 30 September 2017)
Revenue up 48% (organic 12%) to £53.1m (2016: £36.0m)
Gross profit up 22% (organic 10%) to £24.7m (2016: £20.2m)
EBITDA up 8% to £5.7m (2016: £5.3m)
Adjusted profit after tax up 3% to £3.3m (2016: £3.3m)
Diluted adjusted EPS growth of 1% to 4.8p (2016: 4.8p)
Cash and cash equivalents at 30 September 2017 of £15.4m (31 March 2017: £14.7m)
Financial highlights
14
11.212.7
13.5
16.6
20.2
24.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
FY13 FY14 FY15 FY16 FY17 FY18
H1 Gross Profit £m
2.5
3.43.8
4.5
5.35.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY13 FY14 FY15 FY16 FY17 FY18
H1 EBITDA £m
18.7 20.5 21.5
27.8
36.0
53.1
0.0
10.0
20.0
30.0
40.0
50.0
60.0
FY13 FY14 FY15 FY16 FY17 FY18
H1 Revenue £m
Interim Results Presentation FY18, 30 September 2017
Continued investment in future growth
▪ Major deployments
▪ US
Continued investment in future growth
▪ Sales & Marketing
▪ Partnerships
▪ Textlocal India
September September
21%
23% 56%
14%
33% 53%
82%
Growth in all key metrics
Period endedSep-17
£m
Sep-16
£m
Growth
%
Revenue 53.1 36.0 +48%
Gross profit 24.7 20.2 +22%
Administrative
expenses (excluding D&A)(19.0) (14.9) +27%
EBITDA 5.7 5.3 +8%
EBITDA margin* 23.1% 26.0%
Profit before tax 4.1 4.1 +1%
Diluted EPS 4.8p 4.8p +1%
Adjusted trading performance
15
Gross profit split
*EBITDA margin calculated as EBITDA over Gross Profit
3 Year Performance
Revenue CAGR of 35% | Gross profit CAGR of 22% | EBITDA CAGR of 15%
Interim Results Presentation FY18, 30 September 2017
Strong financial position
AssetsSep-17
£m
Mar-17
£m
Cash
Trade receivables
Pass through revenues
Other current assets
15.4
27.4
3.2
4.5
14.7
20.5
5.2
4.8
Current assets 50.5 45.2
Goodwill
Acquired intangibles
Other intangible assets
PPE
Other non-current assets
25.1
5.1
5.9
5.5
0.3
25.3
5.9
4.1
6.0
0.3
Non-current assets 41.9 41.6
Total assets 92.4 86.8
Net Assets 51.0 50.8
Minimal debt
Ability to leverage
High quality receivable
LiabilitiesSep-17
£m
Mar-17
£m
Trade payables and accruals
Pass through revenues
Other current liabilities
26.2
5.5
8.1
20.7
6.6
6.8
Current liabilities 39.8 34.1
Non-current liabilities 1.6 1.9
Total liabilities 41.4 36.0
Balance sheet
16
Interim Results Presentation FY18, 30 September 2017
Excellent cash conversion
Period endedSep-17
£m
Sep-16
£m
Cash generated from operations 5.7 6.4
Net cash from operations 5.5 5.8
Investing activities (3.0) (2.2)
Financing activities (0.1) 0.1
Cash and cash equivalents at
beginning of period14.7 15.0
Foreign exchange on opening
balances(1.7) (0.8)
Cash and cash equivalents at
end of period15.4 17.9
100% conversion of EBITDA to cash from operations
Strong cash position
Cashflow
17
6.6
8.7 8.2 8.810.4
-10.0
-4.6
-9.4
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
Net cash from operating activities (£m) Acquisitions (£m)
Historic Cash Generation
FY15 FY16 FY17FY14FY13
Interim Results Presentation FY18, 30 September 2017
Regional UpdatesSix months ending 30 September 2017
18
Interim Results Presentation FY18, 30 September 2017
Europe & Americas
Revenue up 83% to £35.2m (2016: £19.2m)
Gross profit up 30% (organic 7%) to £13.7m (2016: £10.6m)
Gross margin 39.1% (2016: 55.2%)
Financial highlights Operational highlights
19
SITASITA
UK market leader for digital notifications in financial services sector
(now serving three of the top four UK retail banking groups)
New client wins in UK and US for automation of customer service interactions
in logistics, retail and utilities sector (deployment begins Q1 2018)
Established commercial partnership and reseller agreements with BT, KCOM,
NICE inContact, and SITA
Textlocal has grown strongly Year-on-Year and continues to attract significant
new clients in the leisure, gambling, insurance and public sector
Post period, completed acquisition of Sumotext – provides strong cross selling
opportunities of IMI products to the enterprise market in the US0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
FY14 FY15 FY16 FY17 FY18
H1 Gross Profit £m
MRR License & professional services
5.56.6
9.9 10.6
13.7
Interim Results Presentation FY18, 30 September 2017
Strategic acquisition
M&A Highlight
Leading provider of mobile messaging solutions in the US, founded in 2007
Established client base in government, travel, retail, healthcare sector as well as brands, agencies and non-profit organisations
Complementary customer and product portfolio, providing significant cross-sell and up-sell opportunities into US enterprise market
Consideration between $4.5m and $6.0m payable in cash
Expected to enhance Group earnings during the year ending 31 March 2019
Clients include:
20
Interim Results Presentation FY18, 30 September 2017
Middle East & Africa
Revenue down 21% to £9.1m (2016: £11.6m)
Gross profit down 17% to £5.6m (2016: £6.7m)
Gross margin 61.4% (2016: 58.2%)
Financial highlights Operational highlights
21
SITA SITA
Launched new entertainment services with MTN to support it’s rich digital
content service offering across Africa
Re-branded Archer Digital to IMImobile South Africa
Expect deployment of IMIconnect and IMIcampaign into a new banking client
in Q1 2018
Secured new client, a leading PayTV operator and signed partnership
agreement with Blue Label Mobile, South Africa’s leading telecom distributor
Nigeria now represents 2% of gross profit vs 6% in FY17
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
FY14 FY15 FY16 FY17 FY18
H1 Gross Profit £m
MRR License & professional services
4.14.4 4.5
6.7
5.6
Interim Results Presentation FY18, 30 September 2017
India & South East Asia
Revenue up 69% to £8.8m (2016: £5.2m)
Gross profit up 84% to £5.3m (2016: £2.9m)
Gross margin 60.1% (2016: 55.3%)
Financial highlights Operational highlights
22
SITASITA
Strong performance driven by deployments for Telenor Group in Malaysia,
Bangladesh, Thailand and in the public sector for Government of Telangana
Continued to grow business by working with brands and agencies as they start
to utilise mobile for customer communications
Business in Myanmar is growing, further opportunities for growth in the telecom
and enterprise market
Textlocal India has grown significantly and we continue to invest in customer
acquisition through digital marketing
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY14 FY15 FY16 FY17 FY18
H1 Gross Profit £m
MRR License & professional services
3.1
2.52.2
2.9
5.3
Interim Results Presentation FY18, 30 September 2017
Growth strategy
24
Grow revenue from
existing customers
Accelerate growth via
channel partners
Continue investment in
products + technology
Strategic
acquisition
Expand
geographic footprint
28 customers >£0.5m (FY17)
32 customers >£0.5m (projected)
Invest in new technologies ahead of
market demand and leverages new
emerging communication channels
Extend distribution of products
through channel partners via
joint go-to-market initiatives
Maintain a strong balance sheet
to pursue acquisitions that meet
IMI’s strict acquisition criteria
Become the trusted technology
vendor for digital customer interaction
and maximise cross-selling
opportunities
Focus on expansion in strategic
geographic markets (US, Germany,
South Africa, and South Asia).
Interim Results Presentation FY18, 30 September 2017
Summary and outlook
Favourable market dynamics with continued momentum of digital transformation and automation
Market leading position and long standing client relationships provides solid foundation for organic growth
Acceleration of growth through partnerships
Continued investment in partnerships, product, sales and marketing
FY18 trading in line with expectations
25
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
Atlanta
IMImobile Inc.
Tower Place 200
3348 Peachtree Rd. NE.
Atlanta, GA. USA.
30326
Johannesburg
IMImobile SA
Clearwater Office Park,
Building no. 3, First Floor.
Corner Christiaan De Wet and
Millennium Boulevard,
Strubensvalley,
Roodepoort, Gauteng,
South Africa
High Wycombe
IMImobile Europe Ltd.
Tempus Court
Bellfield Road
High Wycombe
HP13 5HA
United Kingdom
Thank you
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