globo fy 2013 results · disclaimer! 2...
TRANSCRIPT
Globo !FY 2013 !Results!
Disclaimer!
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The informa,on contained in this confiden,al document and any accompanying verbal presenta,on (“Presenta,on”) has been prepared by Globo PLC (the “Company”). It has not been fully verified and is subject to material upda,ng, revision and further amendment. This Presenta,on has not been approved by an authorised person in accordance with Sec,on 21 of the Financial Services and Markets Act 2000 (“FSMA”) and therefore it is being delivered for informa,on purposes only to a very limited number of persons and companies who are persons who have professional experience in maOers rela,ng to investments and who fall within the category of person set out in Ar,cle 19(5) of the Financial Services and Markets Act 2000 (Financial Promo,on) Order 2005 (the “Order”) or are high net worth companies and unincorporated associa,ons within the meaning set out in Ar,cle 49(2) of the Order or are otherwise permiOed to receive it. Any other person who receives this Presenta,on should not rely or act upon it. By accep,ng or aOending this Presenta,on, the recipient represents and warrants that they are a person who falls within the above descrip,on of persons en,tled to receive the Presenta,on. This Presenta,on is not to be disclosed (in whole or part) to any other person or used for any other purpose. The contents of this Presenta,on are confiden,al and may not be copied, distributed, published or reproduced in whole or in part, or disclosed or distributed by recipients to any other person. Prospec,ve investors are advised to conduct their own due diligence and agree to be bound by the limita,ons of this disclaimer. While the informa,on contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representa,ons or warran,es (express or implied) as to, or in rela,on to, the accuracy, reliability or completeness of the informa,on in this Presenta,on, or any revision thereof, or of any other wriOen or oral informa,on made or to be made available to any interested party or its advisers (all such informa,on being referred to as “Informa,on”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tor,ous, statutory or otherwise, in respect of, the accuracy or completeness of the Informa,on or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presenta,on. This Presenta,on may contain forward-‐looking statements that involve substan,al risks and uncertain,es, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-‐looking statements are statements regarding the Company's inten,ons, beliefs or current expecta,ons concerning, among other things, the Company's results of opera,ons, financial condi,on, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-‐looking statements involve risks and uncertain,es because they relate to events and depend on circumstances that may or may not occur in the future. These forward-‐looking statements speak only as of the date of this Presenta,on and the Company does not undertake any obliga,on to publicly release any revisions to these forward-‐looking statements to reflect events or circumstances a[er the date of this Presenta,on. To the extent available, the industry, market and compe,,ve posi,on data contained in these materials come from official or third party sources. Third party industry publica,ons, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but there is no guarantee of the accuracy or completeness of such data. All trademarks and copyrights contained in this Presenta,on are acknowledged and belong to their respec,ve owners. This Presenta,on should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. This Presenta,on does not cons,tute a recommenda,on regarding any securi,es or an investment in the Company. In par,cular, this Presenta,on does not cons,tute an offer or invita,on to subscribe for or purchase any securi,es and neither this Presenta,on nor anything contained herein shall form the basis of any contract or commitment whatsoever. Each party to whom this Presenta,on is made available must make its own independent assessment of the Company a[er making such inves,ga,ons and taking such advice as may be deemed necessary. In par,cular, any es,mates or projec,ons or opinions contained herein necessarily involve significant elements of subjec,ve judgment, analysis and assump,ons and each recipient should sa,sfy itself in rela,on to such maOers. Neither this Presenta,on nor any copy of it may be (a) taken or transmiOed into Australia, Canada, Japan, the Republic of Ireland, the Republic of South Africa or the United States of America (each a “Restricted Territory”), their territories or possessions; (b) distributed to any U.S. person (as defined in Regula,on S under the Securi,es Act of 1933) or (c) distributed to any individual outside a Restricted Territory who is a resident thereof in any such case for the purpose of offer for sale or solicita,on or invita,on to buy or subscribe any securi,es or in the context where its distribu,on may be construed as such offer, solicita,on or invita,on, in each case, of (a), (b) and (c), except in compliance with any applicable exemp,on from requirements surrounding the circula,on of such materials and the solicita,on of investors. The distribu,on of this document in or to persons subject to other jurisdic,ons may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restric,ons. Any failure to comply with these restric,ons may cons,tute a viola,on of the laws of the relevant jurisdic,on.
GLOBO Group introduction!
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GLOBO is an interna,onal leader and technology innovator delivering mul,-‐pladorm Enterprise Mobility Management and Mobile Applica,on Development Pladorm solu,ons.
Deployments in 50+ countries!
Subsidiaries & offices: USA | UK | UAE | Greece | Cyprus | Singapore
Founded 1997!
Listed on AIM
LSE:GBO!
Latest acquisi,on:
2.9m monthly ac,ve consumer users 340k enterprise users 13m+ consumer app licences
REVENUE (TOTAL) 2013: €71.5m / $98.6m 2012: €58.2m / $80.3m 2011: €33.3m / $45.9m
Market Cap: £216m / $364m as of 1 May 2014
GLOBO: US presence!
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• FY 2013, N. America revenue increased by 664% to €3.44m / $4.74m (2012: €0.45m / $0.62m)
• FY 2014 bookings today exceeding €10m / $13.7m organically
• Acquisi,on of No,fy Technology in October 2013 • Offices in San Jose, New York, Canfield. Headquarters to move in Palo Alto by Q3 2014
• Total employees today 80+, to increase organically and through
acquisi,ons
• CEO to relocate to West Coast in Q3 2014
2013 Results summary!
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• Revenue up 56% -‐ strong growth across all business areas
• Growth driven by our focus on Enterprise Mobility
• Delivered strong posi,ve free cashflow at €5.2m / $7.2m*
• Robust balance sheet supports our growth strategy
• Momentum con,nuing in 2014 *Free Cashflow: Net opera,ng Free Cashflow, excluding acquisi,on of No,fy Technology Inc.
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2013 Results highlights!
• Opera,ng Profit to Opera,ng Cashflow cash conversion: 83.2%
• H1 to H2 Opera,ng Free Cashflow from €(1.7m) / $(2.3m)
to €6.9m / $9.5m
• Successful oversubscribed placing €27m / $37.2m net
• Secured Debt Financing with Barclays and EWUB €45m / $62m available
CitronGO! and GO!Social!
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• Revenues up 20% YoY to €35.0m / $48.2m, 45% of total revenue
• Addresses 6.3m users, 2.98m ac,ve, in 32 countries
• MNOs accessed via reseller networks
• We expect con,nued growth at 10% -‐ 20%
GO!Enterprise: Opportunity!
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• Revenues up 149% to €30m / $41m, 42% of total
• The 2017 market opportunity:
o Mobile Enterprise Management to reach $2.2bn
o Mobile Applica,on Development Pladorm to reach $4.8bn
Source IDC
Focus on Enterprise Mobility!
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GO!Enterprise
MDM
Mobile Device Management
Focusing on corporate liable phones
GO!Enterprise
Server Container based
SoluJon
Focusing on “uncompromised BYOD”
GO!App
zone
Mobile ApplicaJon Development PlaQorm
Transforming Mobile ApplicaCon Development
MEM (BYOD) Market Est $2.2 billion -‐ 2017
MADP Market Est $4.8 billion -‐ 2017
GO!Enterprise: N. America focus!
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• FY 2013, total N. America revenue increased by 664% to €3.44m / $4.74m (2012: €0.45m / $0.62m). No,fy revenue contribu,on in Q4 2014, €1.24m / $1.71m
• From European origins Globo is now shi[ing emphasis to address the N. America market opportunity:
• Reloca,ng CEO and headquarters to Palo Alto • Deploying capital for growth and acquisi,on opportuni,es in the US
Market opportunity!
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• Positioned in the two most dynamic technology sectors • • According to Gartner’s “Top 10 Strategic Technology Trends for 2014” (
http://www.gartner.com/newsroom/id/2603623), the top two strategic technology trends for 2014 are:
ü Mobile Device Diversity and Management ü Mobile Apps and Applications
• GO!Enterprise EMM and GO!Enterprise/ GO!AppZone MADP offerings are focused on these two sectors and Globo is one of only three companies in the world that owns both solutions and has the ability to execute a broad spectrum of projects and customer requests in both areas
• Both the EMM and MADP markets are expected to grow substantially over the course of the next four years. In 2012 IDC sized the total EMM market at $798 million and the MADP market at $939 million. Forecast growth by 2017 is for 21.9% CAGR to reach $2.2 billion for the EMM market and 38.7% CAGR to reach $4.8 billion for the MADP market
Industry recognition!
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GLOBO is recognized as one of the 22 companies, leading the Mobile Development Pladorms evolu,on in the Gartner report “Technology Overview of Mobile ApplicaJon Containers for Enterprise Data Management and Security”
GLOBO is recognized as one of the 15 companies, leading the Mobile Development Pladorms evolu,on in the VDC report “Strategic Insights 2012: Enterprise Mobility SoluJon Mobile Development PlaQorms”
Gartner: Positioning Globo!
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Source: Gartner “Enabling Mobility Securely by Protec,ng Mobile Applica,ons on Smartphones and Tablets”, March 2013
Peers!
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• Most leading EMM compe,tors are currently backed by Private
Equity funding, principally from the US
• We highlight four EMM leaders:
– AirWatch; founded in 2003; has raised $225m to date and in February 2013
acquired by Vmware Jan’14 for $1.54bn;
– MobileIron; founded 2007; has raised $145m to date; has filed for a Nasdaq
IPO
– Good Technology; founded 1996; has raised $271m to date; expected to IPO
in 2014.
– Fiberlink MaaS360 acquired by IBM November 2014
2013 !Financial !Review!!!
Revenue: Transition to mobile!
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(€m)#
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Revenue: GO!Enterprise momentum!
During H2 2013 GO!Enterprise revenue
Surpassed CitronGO! Revenue
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(€m)#
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Revenue: Europe and US growth!
2013 Revenue region analysis
Notable growth in target markets
2013 2012 Greece 12% 18% North America 5% 1% Western Europe 16% 1% Eastern Europe 7% 9% South Europe 18% 17% Asia/ Middle East 19% 25% Africa 7% 4% La,n America 17% 25%
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Cashflow: Positive before financing!
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• Cashflow from operaJons +59%
• OperaJng cashflow conversion 89%
• Working capital increased by 7%
against a 55% revenue growth
• Note cash posiCon pre-‐acquisiCon
• Note cash posiCon post-‐acquisiCon
and cap-‐ex
Cashflow: Free Cashflow generation!
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Cashflow: 2012 also positive!
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Working capital cycle: products / revenue
• Consumer mobility services: Terms under these agreements are typically around 120-150 days
• Enterprise Mobility Licensing: Terms under these agreements are typically around 90 days
• Enterprise Mobility Projects: These projects can run typically for 6-9 months. Terms under these agreements are typically around 120-150 days
• S.a.a.S / Telecom: Terms under these agreements are typically around 90-120 days
• Further reduction of DSOs will be achieved by the increase of GO! Enterprise revenues, direct sales growth, cloud services offerings, Western geographies expansion
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2013: Financial summary!
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• Con,nued strong top line growth • Delivered H2 cash genera,on, at €7m / $9.7m
• Increased Gross profit margin at 56.2%
• Opera,ng profit margin 38.2%
• Receivables DSOs at 143 days
• Year-‐end net cash €43m / $59m
2013!Operating Highlights!
2013: Go to market strategy!
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• Expand in key markets through selec,ve acquisi,on
• Develop partnerships: Ingram Micro, scope broadened
• Raise profile through industry recogni,on and par,cipa,on in major events
Acquisition: Notify Technology!
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NOTIFY AcquisiJon • $5.3 million Asset Purchase Agreement
• Executed on 3rd October 2013
• Ra,onale: – Add No,fyMDM, Mobile Device Management – Add to US presence with 52 employees
Partnerships: Ingram Micro!
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INGRAM MICRO DistribuJon Agreement: • Started Q3/2013 and resulted to 1,200
packages sales in US. • Further marke,ng and retailer partnerships
during 2014 will strengthen sales • Partners selling GO!Enterprise BOX:
Partnerships: global network !
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• IBM PartnerWorld Advanced Membership • Fujitsu Europe • Computerlinks • More than 150 new partners in Europe, US, Australia and Asia
Industry RecogniJon • Included in all major analysts reports (Gartner, IDC, Forrester, Ovum, VDC)
• Nominated and awarded in many different contests
2014!Outlook!
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On-Premise or Cloud
GO!Enterprise Mobility Platform
CONTAINER
• Build once, deploy anywhere
• End-to-end encryption
• Hybrid technology
• Drag-and-drop development enhanced with JavaScript, CSS, HMTL5
• Synchronize data with back-end systems
• Email & PIM
• File access & sharing
• Document editing
• Enterprise instant messaging
• Secure browser
• Secure camera
• Device & policies
• App management
• Real-time statistics
• Compliance & alerts
• Reporting and logging
• End user self-service
Complete enterprise mobility!
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GO!Enterprise - EMM!
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GO!AppZone - Architecture!
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MBS – Mobility Business Solutions!
• MADP driving the Enterprise App Space
• Expansion of our development and consul,ng teams
• Emphasis on large scale mobility projects
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2014+ Roadmap!
• Increase our market footprint in US and Western
Europe in the EMM and MADP space
• Develop MBS Consul,ng arm
• Expand our direct sales and go to market strategy
• Execute selec,ve acquisi,ons
• Explore value-‐added ver,cals
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Appendix!
Enterprise Customers Across Sectors!
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ICT & Telecom Marke,ng/ Consul,ng Distributors
Finance & Insurance
Enterprise Customers Across Sectors!
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Government Educa,on Banking
Enterprise Customers Across Sectors!
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Healthcare Media
Security Services
Empowering The Value Chain!
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VARs ISVs Distributors
GO!Enterprise Cloud in A Box!
Distribu,on agreement for N. America with Ingram Micro
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CitronGO! & GO!Social Architecture!
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Services Server Device
Example of product architecture – how package selecXon combines services into a unique screen on the device
GO!Enterprise Architecture!
PlaZorm / Device
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Services Server
GO!Enterprise Offerings!
Entry level Integrate back-‐end systems Extend to client’s consumers
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Board of Directors!
ExecuJve directors
• CosJs Papadimitrakopoulos, Chief ExecuCve Officer
– GLOBO’s founder – Opera,ons and exports manager for Spar, Hellas S.A. – Electrical Engineering degree from the Na,onal Technical
University, Athens – Extensive experience in SE European market
• Makis Bonanos, Commercial Director – Formerly with General Motors and KODAK Near East Inc. – Marke,ng degree from the American College in Greece
(Deree College)
• Dimitris Gryparis, Chief Financial Officer – Joined from Corporate Banking Division of EFG Eurobank – Finance degrees from Essex University and Adelphi
University (US)
Non-‐execuJve directors
• Barry M. Ariko, Non-‐execuCve Chairman – Extensive experience in top-‐level management posi,ons
in Netscape Communica,ons Corp., AOL, Oracle Corp. (Americas opera,ons), Extricity, Inc.
– B.S. in Management from Golden Gate University, San Francisco & Advanced Execu,ve Program at Northwestern University's J. L. Kellogg Graduate School of Management.
• Dr. Joseph Coughlin – Dis,nguished academic at MIT’s School of Engineering – Extensive consul,ng experience within private and public
sectors
• Gavin Burnell – Director, Corporate Finance, Northland Capital
– Broad experience with Small Cap quoted companies
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