imimobile plcunaudited preliminary results year ended 31st march 2017 enterprise cloud communication...
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Unaudited Preliminary Results Year Ended 31st March 2017
IMImobile PLCUnaudited Preliminary Results Year Ended 31st March 2017
Jay Patel, Chief Executive Officer
Mike Jefferies, Chief Financial Officer
June 2017
Unaudited Preliminary Results Year Ended 31st March 2017
IMImobile is….
Communication software provider since 2000
Profitable and cash generative for more than 10 years
900+ employees globally, HQ in London, offices in
Atlanta, Dubai, Hyderabad and Johannesburg
2
Company overview
We help…
Businesses to digitally transform customer experience while
reducing cost
Provide the tools to create real-time, personalised, contextual
and automated customer interactions
Enable faster integration of communication channels and
remove complexity
Working with…. At global scale…
27bn 42bn 80 1Messages
per year
Commerce
transactions
Countries
served
UK Market
leader
At the heart of
digital customer
interactions
15bnVoice flows
per year
Unaudited Preliminary Results Year Ended 31st March 2017
Operational highlights
Major progress across all business units
Organic growth from all regions and business units
Major client wins in all regions
Renewal of all major contracts
Good progress with Textlocal and Archer acquisitions
Infracast acquisition
Launched IMIconnect and IMIchat into UK’s leading cloud contact centre provider
Client wins/renewals
3
SITA
SITA
SITA
SITA
Unaudited Preliminary Results Year Ended 31st March 2017
Strong financial performance
Revenue up 24% (organic 15%) to £76.1m (2016: £61.6m)
Gross profit up 19% (organic 14%) to £43.4m (2016: £36.5m)
EBITDA up 7% to £11.5m (2016: £10.7m)
Adjusted profit after tax up 10% to £7.5m (2016: £6.8m)
Diluted adjusted EPS growth of 6% to 11.0p (2016: 10.4p)
Cash and cash equivalents at 31 March 2017 of £14.7m (31 March 2016: £15.0m)
Financial highlights
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38.543.4
48.9
61.6
76.1
0.0
20.0
40.0
60.0
80.0
FY13 FY14 FY15 FY16 FY17
Revenue (£m)
23.527.9
30.0
36.5
43.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
FY13 FY14 FY15 FY16 FY17
Gross profit (£m)
6.17.2
9.2
10.711.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
FY13 FY14 FY15 FY16 FY17
EBITDA (£m)
Unaudited Preliminary Results Year Ended 31st March 2017
Market Trends &
Products Overview
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Unaudited Preliminary Results Year Ended 31st March 2017
The age of digital customer interaction
Better customer
experience design
Better customer
interaction
Design of CXs across the
customer lifecycle
Traditionally delivered through
professional services or in-house
Orchestration and integration
of customer interactions
Delivered through technology
platforms
Digital
Transformation
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The digital transformation global market size is set to grow to $392bn by 2021
1. Markets and Markets, November 2016; 2. PwC 20th CEO Survey 2017
PwC CEO survey - speed of technological change along with changes in consumer behaviour top boardroom agenda
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2
Unaudited Preliminary Results Year Ended 31st March 2017
The challenge of managing digital customer interactions
Disparate legacy
systems
Business
Applications
Communication
Channels
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Appointment Reminders
Fraud Alerts
Parcel Notifications
Live Chat
Music & Video Content
FAST CHANGING
TIME CONSUMING
COMPLEX
Unaudited Preliminary Results Year Ended 31st March 2017
IMIconnect video
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https://www.youtube.com/watch?v=-tm30YlaZEs
Unaudited Preliminary Results Year Ended 31st March 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
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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 channels added
New integrations
Additional scalability
Recognition
Facebook Messenger, Skype for
Business, Alexa, Web Push
Salesforce, Cisco, Pega
Amazon Web Services (AWS)
Two Mobile Marketing Awards
(Textlocal)
Vendor in Gartner's new Market Guide
for ‘Mobile Marketing Platforms’
Unaudited Preliminary Results Year Ended 31st March 2017
Financial ResultsResults Year Ended 31st March 2017
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Unaudited Preliminary Results Year Ended 31st March 2017
Commercial model
Volume of e-mail, SMS, MMS,
push notification, sessions etc.Licences & one-off
professional services
Contracted revenues
15% 40% 35% 10%Fixed fees Usage based Transactional Non
recurring
Monthly Recurring Revenue(MRR)
Gross Profit Split*
Fees based on revenue transactions
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*Indicative gross profit split
Unaudited Preliminary Results Year Ended 31st March 2017
Growth in all key metrics
Year endedMar-17
£m
Mar-16
£m
Growth
%
Revenue 76.1 61.6 +24%
Gross profit 43.4 36.5 +19%
Administrative
expenses (excluding D&A)(31.9) (25.8) +23%
EBITDA 11.5 10.7 +7%
EBITDA margin* 26.4% 29.3%
Profit before tax 9.0 8.5 +6%
Diluted EPS 11.0p 10.4p +6%
Adjusted trading performance
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53%
31%
16%
Europe & Americas MEA India & SEA
FY1754%
31%
15%
Europe & Americas MEA India & SEA
FY16
91%
9%
MRR Licence / one-off / professional services
FY17
92%
8%
MRR Licence / one-off / professional services
FY16
Gross profit split
*EBITDA margin calculated as EBITDA over Gross Profit
3 year - revenue CAGR of 21% - gross profit CAGR of 16% - adjusted EBITDA CAGR of 17%
Unaudited Preliminary Results Year Ended 31st March 2017
Strong financial position
AssetsMar-17
£m
Mar-16
£m
Cash
Trade receivables
Pass through revenues
Other current assets
14.7
20.5
5.2
4.8
15.0
16.9
3.1
4.6
Current assets 45.2 39.6
Goodwill
Acquired intangibles
Other intangible assets
PPE
Other non-current assets
25.3
5.9
4.1
6.0
0.3
19.8
2.3
2.0
4.7
0.5
Non-current assets 41.6 29.3
Total assets 86.8 68.9
Net Assets 50.8 43.6
Minimal debt
Ability to leverage
High quality receivable
LiabilitiesMar-17
£m
Mar-16
£m
Trade payables and accruals
Pass through revenues
Other current liabilities
20.7
6.6
6.8
14.4
6.3
3.8
Current liabilities 34.1 24.5
Non-current liabilities 1.9 0.8
Total liabilities 36.0 25.3
Balance sheet
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Unaudited Preliminary Results Year Ended 31st March 2017
Excellent cash conversion
Year toMar-17
£m
Mar-16
£m
Cash generated from operations 11.9 10.6
Net cash from operations 10.4 8.8
Investing activities (16.5) (8.5)
Financing activities 6.3 0.0
Cash and cash equivalents
at beginning of period15.0 14.6
Foreign exchange on opening
balances(0.5) 0.1
Cash and cash equivalents
at end of period14.7 15.0
104% conversion of EBITDA to
cash from operations
After £5.5m net cash consideration
paid for Infracast
Strong cash position
Cashflow
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Unaudited Preliminary Results Year Ended 31st March 2017
Regional UpdatesYear Ended 31st March 2017
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Unaudited Preliminary Results Year Ended 31st March 2017
Regional overview – Europe & Americas
Revenue up 19% to £41.1m (2016: £34.5m)
Gross profit up 15% to £22.9m (2016: £19.9m)
Gross margin 55.6% (2016: 57.6%)
Financial highlights
New client wins across mobile operator, banking, utilities, retail, estate
agent and gambling & gaming
Renewal of contract with O2 for IMIcampaign until 2019
Continued investment in partnership strategy, early success with BT
(IMIconnect and IMIchat)
Good US progress, plan to enter enterprise market
UK market leader for digital interactions
Operational highlights
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11.3
16.4
19.922.9
FY14 FY15 FY16 FY16
Europe & Americas gross profit (£m)
MRR License / one-off / professional services
FY17
SITASITA
Unaudited Preliminary Results Year Ended 31st March 2017
Strategic acquisition
M&A Highlights
Initial consideration of £8.2m payable in cash and shares on completion
Reported revenue and gross profit of £10.4m and £3.1m, respectively, for the year ending 31 May 2016
Expectation to enhance Group earnings during the year ending 31 March 2018
Complementary customer and product portfolio, providing significant cross-sell and up-sell opportunities.
Leading provider of multi-channel messaging and routing middleware solutions, founded in 2001
Experienced management and operational team of 30 employees is based in Reading, UK
Clients include: * **
* Delivered through O2 UK
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Spain
Unaudited Preliminary Results Year Ended 31st March 2017
Regional overview – Middle East & Africa
Revenue up 37% to £23.2m (2016: £17.0m)
Gross profit up 20% (organic 2%) to £13.5 (2016: £11.3m)
Gross margin 58.3% (2016: 66.6%)
Financial highlights
Long term multi-territory relationships with major operator groups and
financial services (retail banks)
Renewed multi-year contract with MTN to support its rich digital content
services
Strong synergies from Archer Digital - sold IMIconnect into largest
banking client and Archer has supported various video and MMS
initiatives across the Group
Operational highlights
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SITA SITA
10.78.6
11.3
13.5
FY14 FY15 FY16 FY16
MEA gross profit (£m)
MRR License / one-off / professional services
FY17
Unaudited Preliminary Results Year Ended 31st March 2017
Long-term opportunity in the MEA region
Strong opportunity
for growthEstablished
customer base
Economic situation and
devaluating currency (Naira).
Political upheaval and
uncertainty in South Africa.
Experienced in
challenging environments
We benefit from a strong
regional customer base,
particularly across telecom
and financial services.
Well positioned to take
advantage of regional
mobile and digital trends.
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*Stats & infographic taken from GSMA report – The Mobile Economy Africa 2016
Unaudited Preliminary Results Year Ended 31st March 2017
Regional overview – India & South East Asia
Revenue up 16% to £11.8m (2016: £10.1m)
Gross profit up 31% to £7.0m (2016: £5.3m)
Gross margin 59.2% (2016: 52.5%)
Financial highlights
Major client wins in the region including Telenor for the deployment of VAS
virtualization platform - Bangladesh, Malaysia and Thailand; and
Government of Telangana
Significant growth within the mobile operator sector with deployments in
Myanmar, Nepal and Sri Lanka
Strengthened our brands and agency relationships, delivering more
campaigns for our customers
Textlocal India has continued to grow with now more than 9,000 (+4,000)
paying customers
Operational highlights
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SITASITA
5.95.0 5.3
7.0
FY14 FY15 FY16 FY16
India & SEA gross profit (£m)
MRR License / one-off / professional services
FY17
Unaudited Preliminary Results Year Ended 31st March 2017
Major new agreement with Telenor Group
Telenor Group is one of the world’s major
mobile operators
Provides tele, data and media services
for 214 million subscribers
Connected in 13 markets across
Scandinavia, Central & Eastern Europe,
and Asia
One of the top 500 global companies by
market value
Revenues 2016: NOK 125 billion
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Using IMIdigital to supply a cloud-based digital service delivery platform for
business units across the Telenor Group
Includes partner, content and subscription management as well as a single
mobile and web portal
IMImobile helps meet Telenor’s strategic goal to virtualise its network
capabilities and improve the efficiency of its core business
IMIdigital powers more than 14 billion content transactions per year across 350
deployments worldwide
Unaudited Preliminary Results Year Ended 31st March 2017
Growth Strategy
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Unaudited Preliminary Results Year Ended 31st March 2017
Consistent growth strategy
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Grow revenue from
existing customers
Accelerate growth via
channel partners
Continue investment in
products + technology
Strategic
acquisition
Expand
geographic footprint
Since IPO
28 customers >£0.5m
Unaudited Preliminary Results Year Ended 31st March 2017
Summary and outlook
Favourable market dynamics with shift towards digital
Market leading position and long standing client relationships provides solid foundation for organic growth
Acceleration of growth through partnerships
Continued investment in product and marketing
FY18 trading in line with expectations
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London
IMImobile Europe Ltd
5 St Johns Lane
EC1M 4BH
London
United Kingdom
Phone: +44 20 300 86232
Atlanta
IMImobile Inc
Tower Place 200
Atlanta, GA
30326
United States
Phone: +1 470 216 1984
Dubai
IMImobile VAS Ltd FZE
P.O. Box 293593
Office # 624, Building 5EA
Dubai Airport,
U.A.E.
Phone: +971 46091 690
Hyderabad
IMImobile Pvt. Ltd
Plot No. 770, Road No 44
Jubilee Hills
Hyderabad
India
Phone: +91 40 23 555 945
Locations
Johannesburg
Clearwater Office Park,
Building no. 3, First Floor.
Corner Christiaan De Wet and Millennium
Boulevard, Strubensvalley,
Roodepoort, Gauteng, South Africa
Phone: +27 11 991 2900
25
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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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
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