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FY 2015 – Results Presentation June 2015
› About IMImobile
› Products and technology
› Financial results
› Regional updates
› Summary
2
| Agenda
3
| The management team
Mike Jefferies
Group Finance Director
Jay Patel
Chief Executive Officer
» 6 years at IMImobile
» Executive position at
WIN plc and formerly
with the Whirlpool
Corporation
» Chartered Management
Accountant
» 15 years with IMImobile
» 21 years of Technology,
Media & Telecom
experience with BSkyB,
UBS Warburg, Spark
Ventures
» Chartered Accountant with
KPMG and MBA from
INSEAD
Vishwanath Alluri Founder & Chairman
Shyam Bhat Founder & CTO
› Chartered Accountant and
Company Secretary
› Extensive experience in creating
technology companies
› Engineer from highly prestigious
Indian Institute of Technology,
Bombay
› Two decades of experience in
engineering new product
developments
John Allwood Non-Executive Director
Simon Paul Blagden MBE Non-Executive Director
› Ex Chief Executive of Orange UK
› Ex MD of Telegraph Media Group
› Non-Executive Director of Talk Talk
› Non-Executive Co-Chairman
Fujitsu Europe
› Chairman Duke of York Trust
Board of Directors
4
What we do
We are an IP led technology
company that provides software
and services to clients to help
them engage with their customers
on mobile devices.
› 2003 First products sold in India
› 2007 Internationalisation began
› 2010 UK acquisition
› 2014 AIM Listing
The company HQ is in London,
with 680 employees
| About IMImobile
Live services in
Atlanta
London
Dubai
Background
Who we do it for
Bogota
Hyderabad
5
Key financial highlights
» Revenue up 13% to £48.9m (2014: £43.4m)
» Gross profit up 8% to £30.0m (2014: £27.9m)
» EBITDA up 27% to £9.2m (2014: £7.2m)
» Adjusted profit after tax up 48% to £5.6m (2014: £3.8m)
» Cash and cash equivalents £14.6m (2014: £9.3m)
Key operational highlights
» New major client wins in all regions
» Key new contracts signed in India
» Renewal of several major contracts
» Listed on AIM in June 2014, raising net proceeds
of approximately £7m
» Acquisition and successful integration of Textlocal
| Key highlights
23.5
27.9
30.0
20.0
22.0
24.0
26.0
28.0
30.0
32.0
FY13 FY14 FY15
Gross Profit in £m
6.1
7.2
9.2
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
FY13 FY14 FY15
EBITDA in £m
6
| Market context
Mobile (Smartphone)
Penetration
Mobile Network
Speed
Big Data
(cloud computing)
Optimise cross-
screen/channel customer
experience
IT focus on digitisation of
service delivery
Use of real-time data in
customer engagement
Technology trends
Business challenges
› About IMImobile
› Products and technology
› Financial results
› Regional updates
› Summary
7
| Agenda
8
Mobile Networks Payment Networks Social Networks OTT Services
.
DaVinci
CMS
Campaign
Manager
DaVinci
Social
Direct Carrier
Billing Openhouse Textlocal
Service Manager
Policy Manager
Settlement Engine
ID and Access Control
Partner Manager
Resource Manager
Reporting & Data Visualisation Governance & User Management Service Creation Environment API Gateway
DaVinci Evolved Service Platform
En
ab
lers
G
ate
wa
y
Pla
tfo
rm
Pro
du
ct
| Technology :: DaVinci Platform
The DaVinci ESP forms the bedrock of our software, service and product offering.
Our platform and solutions are network, device and channel agnostic.
Licence M.S. SaaS Licence M.S. SaaS SaaS SaaS M.S. SaaS Licence
9
Textlocal Campaign Manager Openhouse
Enterprise-grade Campaign Management tool for
real-time multi-channel marketing
communication.
Single platform for marketing automation across
SMS, MMS, Voice, Push, Email and USSD.
Market leading self-serve text messaging and
mobile marketing platform for businesses.
Feature-rich capabilities allow SME
customers to quickly deploy and manage
messaging campaigns.
Enterprise-grade platform for creation of
inbound and outbound service delivery
communications.
Offers rich set of assets (messaging, voice,
location etc.) via APIs and workflow builder.
DaVinci Social DaVinci CMS Direct Carrier Billing (DCB)
Carrier-grade Content Management System for
delivering multi-channel content services.
Reduces time to market for new content and
streaming services across mobile, tablet and web.
UGC (User Generated Content) platform for
the broadcasting value chain to engage and
build relationships with an audience base.
Single platform for visibility and interaction
over mobile, digital and social channels.
Mobile payment solution that allows merchants to collect
payments from customers via their mobile phone bill.
One single API provides access to multiple mobile
operators, removing integration complexity for
merchants.
| Our core product set
› About IMImobile
› Products and technology
› Financial results
› Regional updates
› Summary
10
| Agenda
11
| Income statement
Year ended 31 March (GBP 000’s) 2015 2014 % change
Revenue 48,876 43,404 13%
Gross profit 30,028 27,899 8%
EBITDA 9,156 7,218 27%
Depreciation and amortisation (2,442) (2,106)
Operating profit before SBP and
exceptional items 6,714 5,112 31%
Share based payments (7,294) (150)
IPO related costs and other exceptional
items (1,720) 273
Financing costs 13 26
Tax (1,076) (1,342)
(Loss) / Profit after tax (3,363) 3,919
EBITDA 9,156 7,218 27%
EBITDA % 18.7% 16.6%
Adjusted profit before tax 6,727 5,138 31%
Adjusted profit before tax % 13.8% 11.8%
Adjusted profit after tax 5,600 3,796 48%
Adjusted profit after tax % 11.5% 8.7%
» Growth in all key metrics
» Revenue of £48.9m, +13%
» Gross profit of £30.0m, +8%
» EBITDA of £9.2m, +27%
» Improving operating leverage
» Operating profit before SBP and
exceptionals of £6.7m, +31%
» Adjusted profit after tax growth
of 48% to £5.6m (FY14: £3.8m)
Key financial highlights
12
| Balance sheet
As at 31 March (GBP 000’s) 2015 2014
Non-current assets Goodwill 17,934 7,861 .
Intangible assets 1,678 475 .
Available-for-sale financial assets 279 424 .
Property, plant and equipment 4,285 5,134 .
Deferred tax assets 911 871 .
25,087 14,765 .
Current Assets Cash and cash equivalents 14,617 9,305 .
Pass through billing revenues 3,175 4,799 .
Trade and other receivables 16,570 16,568 .
34,362 30,672 .
Current Liabilities Trade and other payables (20,104) (20,402) .
(20,104) (20,402) .
Net current assets 14,258 10,270 .
Non-current liabilities Redeemable preference shares - (10,895) .
Provision for defined benefit
gratuity (406) (245) .
(406) (11,140) .
Net assets 38,939 13,895 .
» Goodwill created on
acquisition of Textlocal
» Modest capex spend
» No external debt
» Net £7m of cash raised as
part of the IPO
» £10m paid for acquisition of
Textlocal
» Preference shares converted
to equity prior to IPO
Key financial highlights
13
| Cash flow
Year ended 31 March (GBP 000’s) 2015 2014
Net cash flows from operating activities 8,234 8,748
Interest received 13 31
Purchases of intangibles (672) (186)
Purchases of property plant and equipment (967) (1,683)
Acquisition of subsidiary as part of capital restructuring (23,464) (113)
Acquisition of subsidiary net of cash acquired (7,970) -
Other investing activities 15 (616)
Net cash used in investing activities (33,045) (2,567)
Repayment of borrowings – Bank loans - (1,220)
Issue of borrowings – Related party director loans - (301)
Proceeds from issuance of Ordinary shares 30,000 572
Dividends paid to owners of the parent - (415)
Net cash used in financing activities 30,000 (1,364)
Net increase in cash and cash equivalents 5,189 4,817
Cash and cash equivalents at beginning of year 9,305 4,643
Effect of foreign exchange rate fluctuations 123 (155)
Cash and cash equivalents at the end of the year 14,617 9,305
» Operating cash conversion of 90%
-8.0
-4.0
0.0
4.0
8.0
12.0
16.0
Mar-11 Mar-12 Mar-13 Mar-14 Mar-15
Group Net Debt (£m)
Cash Debt
Key financial highlights
› About IMImobile
› Products and technology
› Financial results
› Regional updates
› Summary
14
| Agenda
15
| Revenue Models
Managed Solutions IP (Platform) + Last Mile + People
Licence Fees IP (Platform)
» Combination of software and
professional services
» Customer contracts the day-to-
day management of the service
+ the technical delivery and
platform
» Contracts are longer term
» Software is deployed in the
customer’s own network
environment
» Sometimes sold in conjunction
with third-party hardware
» Annual maintenance fees are
often included in the commercial
offering
CRM
SaaS IP + Last Mile
» A provision of software or API
connectivity
» The commercial model is usually a
mix of recurring licence + support
fees + transactional revenues
» Ongoing operational support tends
to be lower, with variable third-
party costs incurred
*Approximate revenue split
50% 35% 15%
16
| Regional Overview :: Europe & the Americas
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
FY13 FY14 FY15
Managed Solution SaaS / Cloud Licence / One-off TextLocal
Key customers include:
» Europe makes up over 52% of Group gross profit
» Gross profit (incl. Textlocal) grew by 43% in the FY 31
March 2015
» Like for like gross profit growth strong at 26%
» Gross margins increased (mix of delivery models and
falling costs of 3rd party network infrastructure)
Financial performance:
Operating performance:
» New client wins across mobile operator, retail, gambling
and gaming sectors as well as upsell and cross sell to
existing customers.
» Acquisition and integration of Textlocal in line with
expectations. Plans progressing to leverage global
footprint and rollout into new geographies.
» All our products and platforms are live in this region with
significant opportunities in the financial services sector.
» A growing Americas operator business, with continuing
investment in US market and operations.
Regio
nal curr
ency in G
BP
m
£’m Gross Profit
£11m £11.3m
£16.4m
Tier 1
Bank
17
| Strategic highlights - TextLocal Acquisition
» Best-in class messaging solutions platform for SMBs, serving
over 100,000 businesses since its foundation in 2005
» Strong track record of profit and cash generation with revenue
and profit after tax of £7m and £1m, respectively, for the year
ending 30 November 2013
» Acquisition cost of £10m cash and £1m by way of IMI shares.
Deferred consideration of up to £2.15m
» Textlocal shows strong growth in revenue of 21% in period Dec –
May 2015 vs same period 2014
» Successful integrations against group objectives - alignment of
technical roadmap, product launch in India in FY 2015 and further
cross-sell opportunities through mobile operators and other
resellers
» Launch of Messenger 3.0 in February 2015 with improved user
interface and added new features
Reason for acquisition
Progress since acquisition
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
FY13 FY14 FY15
Managed Solution SaaS / Cloud Licence / One-off
18
| Regional Overview :: Middle East and Africa
Key customers include:
» Strong managed solution performance with year on year
gross profit growth of 16% from recurring revenue
contracts.
» Expected year on year gross profit decline from licence
revenues (following exceptional FY 31 March 2014).
Financial performance:
Operating performance:
» New territory and service deployments for existing
customers, largely mobile operator group relationships in
the region.
» New services live in Senegal, Ghana, Nigeria, Guinea and
Niger.
» We expect to establish broader product set in the coming
year in the region, catering to enterprises and
governments.
Regio
nal curr
ency in U
SD
m
Gross Profit $’m
$6.8m
$17m
$13.9m
19
| Regional Overview :: India and SE Asia
Key customers include:
» Gross profit decline of 15% compared to FY 31 March
2014, in local currency the decline was 13%.
» India region represents 17% of Group gross profit
» Significant increase in gross profit from non-operator
segments
Financial performance:
Operating performance:
» Successful win of multiple managed solution contracts
with operators in India, Myanmar and Nepal.
» Signed new customers in the public sector and with
leading FMCG consumer brands.
» Invested in sales and marketing, expect to see growth in
new sectors in the region.
» Launch of Textlocal over the coming year will broaden
SaaS product portfolio and we will continue to invest in
targeting new sectors.
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
FY13 FY14 FY15Managed Solution SaaS / Cloud Licence / One-off
Regio
nal curr
ency inIN
Rm
₹’m Gross Profit
₹ 715.8
₹ 566.8
₹ 493.7
› About IMImobile
› Products and technology
› Financial results
› Regional updates
› Summary
20
| Agenda
21
| Summary and outlook
» Successful AIM listing in June 2014
provides foundation for capital raising
» Acquisition and successful integration
of Textlocal, trading well since
completion in October 2014, generating
profit for the Group
» Good performance across key financial
metrics and new major client wins in all
regions combined with renewal of key
contracts with existing clients Well placed to take advantage
of technology trends in fast
growth markets.
Transformational year
» FY 2016 has started well with trading in
line with Directors’ expectations
» Continuing investment in technology
roadmap and geographic expansion
underpin plans for organic growth
» Significant consolidation opportunities
in a fragmented market
Positive Outlook
| Thank you
5 St John’s Lane
London
EC1M 4BH
United Kingdom
IMImobile PLC
22
| Disclaimer
23
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
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