Interim results for the six months
ended 30 September 2014
› Introduction to IMImobile
› Results highlights
› Financial results
› Summary and outlook
2
| Agenda
3
| The management team
Mike Jefferies
Group Finance Director
Jay Patel
Chief Executive Officer
» 5 years at IMImobile
» Executive position at
WIN plc and formerly
with the Whirlpool
Corporation
» Chartered Management
Accountant
» 14 years with IMImobile
» 20 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
Who we are
We are an IP led technology
company that builds and owns
software to help clients capitalise
on the growth in mobile
communications.
Our products and services enable
our customers to use:
| About IMImobile
Live services in
Atlanta
London
Dubai
What we do
Who we do it for
Bogota
Mobile as a
revenue channel
Mobile as a CRM &
Engagement channel
Mobile to enable
Business Efficiency
Hyderabad
5
Operator & Enterprise IT Systems
DaVinci
CMS
DaVinci
Campaign Manager
DaVinci
Profile Manager
DaVinci
Social
IMImobile
OPENHOUSE
DaVinci Evolved Service Platform
Mobile
Network
Social
Network
Payment
Network
OTT
Services
Last Mile
Messaging Voice Connectivity Push Notification
Our Platform & Strategy: Network - Device - Channel agnostic
Device complexity
Multiple OS & Devices
Network complexity
Multiple MNOs & Channels
| Simplifying mobile engagement
Integration complexity
Multiple IT Systems
| Our core products & services
6
Mobile as a revenue
channel
Mobile as a CRM and
engagement channel
Mobile to enable
business efficiency
We enable our clients to drive revenue
and monetise their available assets,
services and products by streamlining
the payment process.
We help our clients to develop a data
driven, multi-channel CRM strategy that
engages and serves customers at every
stage of the customer lifecycle.
We help our clients utilise mobile
capabilities to improve and streamline
business processes as well as
customer and field force operations.
› Mobile Content Services
› Mobile Operator Billing & Payments
› Apps, Music & Digital Entertainment Services
› Multi-channel Marketing Execution
› CRM & Loyalty Programmes
› Multi-channel audience engagement
› Optimising Field Force Management
› Customer Service (2-Factor & Click & Collect)
› Enterprise Apps
› Introduction to IMImobile
› Results highlights
› Financial results
› Summary and outlook
7
| Agenda
8
| Results highlights
Results in line with expectations
Key financial highlights
» Revenue up 5% to £21.5m (2013: £20.5).
» Gross profit up 7% to £13.5m (2013: £12.7m).
» EBITDA up 10% to £3.8m (2013: £3.4m).
» Adjusted Profit after tax up 29% to £2.3m (2013: £1.7m).
» Share based payment charge of £5.7m relating to pre-IPO option grants.
» Strong performance from Europe with Gross Profit up 18% to £6.3m.
» Net cash generated from operating activities of £1.7m (2013: £4.9m).
» Cash and cash equivalents at 30 September 2014 of £16.9m (2013: £9.3m).
“These six months were a strategically important period for the Group and we are pleased with the
results which demonstrate a good overall performance. We are delighted to have successfully
listed, made our first material acquisition and continued to deliver profitable growth.”
Key operational highlights
» New major operator clients in the UK, Nigeria and
Costa Rica and initial progress into the Gambling and
Retail sectors.
» Renewal of key contracts with BBC and leading UK
motoring organisation.
» Recognised for mobile innovation awards for work
with Mobile by Sainsbury’s, Ikea and Universal Music.
» Successful listing on AIM on 27 June 2014 raising a
total of £30m.
» Completion of acquisition of TextLocal (TxtLocal
Limited) on 13 October 2014 giving access to large
SMB customer base via SaaS platform, and will be
earnings enhancing during the current year.
Jay Patel, Chief Executive Office, IMImobile
9
| Strategic highlights - TextLocal Acquisition
TextLocal Overview
“We believe the acquisition by IMImobile will allow TextLocal to stay at the forefront of a fast-moving
and competitive market. The acquisition will also strengthen our capabilities to deliver service
innovation and significantly extend our international client base.”
» Best-in class platform for SMB’s messaging
solutions having served over 100,000 businesses
» Founded in 2005; Team of 30 based in offices in
Chester and Malvern
» 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
» Customers give TextLocal 4.9 / 5 stars from 1,549
reviews with a 96% overall satisfaction rate.
Jason Palgrave-Jones, MD TextLocal
10
| Regional updates
EUROPE & AMERICA
» Europe region delivered Gross Profit growth of 18%
» New strategic client wins and additional sales to
existing customers contributed to the performance
of the region
» Margins for SaaS and Managed Solutions grew due
to reduction in cost of network infrastructure
» Continue to see growing appetite of large
enterprises and MNOs to invest in marketing
programmes
» Delivered innovation such as ‘Tweet to Donate’
enabling the Post Office to become first UK
organisation to process donations via Twitter
» Launched and manage Loyalty Programme for
South American operator
MEA, INDIA & SE ASIA
» Gross Profit in MEA region grew by 8%
(combination of Managed Solutions and Licence
Revenues)
» New contract wins with mobile operator clients,
deployments scheduled for second half of the
year
» Gross Profit in India and South East Asia
decreased by 19% (as expected)
› The decline is an ongoing consequence of the
implementation of consumer protection
regulations that have impacted our clients, the
MNOs
› We are confident of our return to growth with
successful launches of new services in new
territories and sectors
› Introduction to IMImobile
› Results highlights
› Financial results
› Summary and outlook
11
| Agenda
Six months ended 30
September 2014 2013 Change
Revenue £21.5m £20.5m 5%
Gross profit £13.5m £12.7m 7%
Gross margin 62.7% 61.8%
EBITDA1 £3.8m £3.4m 10%
EBITDA margin 17.5% 16.8%
Adjusted profit after tax2 £2.3m £1.7m 29%
Cash & cash equivalents £16.9m £7.0m 143%
12
| Results at a glance
¹EBITDA is defined by the Group as loss/profit before tax, depreciation, amortisation, net finance costs, fees
incurred in relation to IPO, share based payment charge and other exceptional items
²Adjusted profit after tax is defined as profit before fees incurred in relation to IPO, share based payment charge
and other exceptional items
11.2
12.7
13.5
8.0
9.0
10.0
11.0
12.0
13.0
14.0
HY13 HY14 HY15
Gross Profit in £m
2.5
3.4
3.8
1.0
1.5
2.0
2.5
3.0
3.5
4.0
HY13 HY14 HY15
EBITDA in £m
13
| Income statement
Six months ended 30 September 2014 2013 % change
Revenue 21,538 20,506 5%
Gross profit 13,509 12,665 7%
EBITDA 3,774 3,444 10%
Depreciation and amortisation (1,059) (1,063)
Operating profit before SBP and
exceptional items 2,715 2,381 14%
Share based payments (4,469) (184)
IPO related costs and other exceptional
items (1,265) 340
Financing costs 8 (45)
Tax (472) (590)
Profit after tax (3,483) 1,902
EBITDA 3,774 3,444 10%
EBITDA % 17.5% 16.8%
Adjusted profit before tax 2,723 2,336 17%
Adjusted profit before tax % 12.5% 11.2%
Adjusted profit after tax 2,251 1,746 29%
Adjusted profit after tax % 10.6% 8.2%
» Growth in all key metrics
» Revenue of £21.5m, +5%
» Gross profit of £13.5m, +7%
» EBITDA of £3.8m, +10%
» Improving operating leverage
» Operating profit before SBP and
exceptionals of £2.7m, +14%
» Adjusted profit after tax growth
of 29% to £2.3m (2013: £1.7m)
Key financial highlights
14
| Balance sheet
As at 30 September 2014 2013
Non-current assets Goodwill 7,861 7,861
Intangible assets 577 475
Available-for-sale financial
assets 424 424
Property, plant and equipment 4,719 5,134
Deferred tax assets 1,301 871
14,882 14,765
Current Assets Cash and cash equivalents 16,912 9,305
Trade and other receivables 20,111 21,367
37,023 30,672
Current Liabilities Trade and other payables (17,349) (20,402)
(17,349) (20,402)
Net current assets 19,674 10,270
Non-current liabilities Redeemable preference shares - (10,895)
Provision for defined benefit
gratuity (214) (245)
Deferred tax liabilities (381) -
(595) (11,140)
Net assets 33,961 13,895
» Modest capex spend
» No capitalisation of development
» Net £7m of cash raised as part of
the IPO
» Deferred licence revenues of
£1.5m recognised in period
» Preference shares converted prior
to IPO
Key financial highlights
15
| Cash flow
Six months ended 30 September 2014 2013
Net cash flows from operating activities 1,656 4,943
Interest received (15) 24
Purchases of intangibles (256) (84)
Purchases of property plant and equipment (597) (510)
Acquisition of Group (following IPO) (19,874) -
Net cash used in investing activities (20,742) (570)
Repayment of borrowings – Bank loans - (925)
Issue of borrowings – Related party director loans - (301)
Proceeds from issuance of Ordinary shares 30,000 555
IPO related expenditure (3,286) -
Dividends paid to owners of the parent - (415)
Net cash used in financing activities 26,714 (1,086)
Net increase in cash and cash equivalents 7,628 3,287
Cash and cash equivalents at beginning of year 9,305 4,643
Effect of foreign exchange rate fluctuations (21) 58
Cash and cash equivalents at the end of the year 16,912 6,956
» Cash from operations impacted
by “pre-paid” licence revenues in
prior year
» No external debt
» Net £7m raised during IPO
» TextLocal acquisition post period
end
Key financial highlights
16
| Summary and outlook
» Second half of 2015 financial year has started well
with trading in line with expectations
» The Group remains on track to achieve market
expectations for the full year
» TextLocal is currently being integrated into the Group
and is trading well since acquisition
» We continue to see growing interest from our large
blue chip customers in all our operating regions and
as a result the Board are confident of the Group’s
future prospects
Focused on building a global business
| Thank you
5 St John’s Lane
London
EC1M 4BH
United Kingdom
IMImobile
17
| Disclaimer
18
This presentation (“Presentation”), and the information contained herein, is not for viewing, release, distribution or publication into or in the United States or any other jurisdiction where applicable laws prohibit its release, distribution or publication. This Presentation is being issued by IMImobile Limited (the "Company") for information purposes only. The content of this Presentation has not been approved by an authorised person for the purposes of Section 21(2)(b) of the Financial Services and Markets Act 2000. Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. This Presentation is not an admission document or an advertisement and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any shares in the Company (“Shares”) in the United States or any other jurisdiction. Neither the Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in connection with or act as an inducement in relation to a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any Shares. Any such offer, subscription or solicitation will only be made by means of an admission document which may be issued by the Company in due course Whilst the Presentation has been prepared in good faith, no representation or warranty, express or implied, is given by or on behalf of the Company, its respective directors and affiliates or any other person as to the accuracy or completeness of the information or opinions contained in this Presentation and no responsibility or liability whatsoever is or will be accepted by the Company, its respective directors and affiliates or any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. Any such liability is expressly disclaimed. The contents of this Presentation are confidential and may not be copied, distributed, published or reproduced in whole or in part, or disclosed or distributed by recipients to any other person. 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| Disclaimer
19
IMImobile PLC (“the Company”) was incorporated on 4 December 2013 and did not trade within the 17 week period ended 31 March 2014. As a result no income statement, or cash flow statement, has been presented for the company within this preliminary announcement. As at 31 March 2014 the company had net assets and equity of £100. On 27 June 2014 the Company was successfully admitted to AIM and used the proceeds from the initial placing to pay the cash consideration for the acquisition of 76% of the issued share capital of IMI Mobile Private Limited. The Company and its NOMAD, Spark Advisory Partners Limited, have entered into a relationship agreement with the two founding shareholders (“Founders”) of IMI Mobile Private Limited who own 24% of the issued share capital of IMI Mobile Private Limited. The relationship agreement gives the Founders the right (but not the obligation) to swap all of their IMI Mobile Private Limited shares for ordinary shares in the Company on the basis of one IMI Mobile Private Limited share for three ordinary shares in the Company. Whilst at 31 March 2014 the Company had no trade or assets and had not completed the acquisition of IMI Mobile Private Limited, the Directors believe that the provision of additional information on the results of IMI Mobile Private Limited and its subsidiaries for the year ended 31 March 2014 and its financial position as at 31 March 2014, together with comparative information for the prior year, is necessary in order to present a true and fair view of the company’s financial statements. This additional information has also been included in the preliminary announcement and is described as the Pro-forma Consolidated Financial Information. The additional information does not reflect the acquisition of IMI Mobile Private Limited by IMImobile PLC. This will be accounted for as a capital reorganisation, reflecting the substance of the transaction. Hence the consolidated financial statements of the company will be prepared on the same basis as presented in this Pro Forma Financial Information with the 24% interest in IMI Mobile Private Limited owned by the two founding shareholders accounted for as a non-controlling interest. The financial highlights and commentary contained within this presentation are based on the pro-forma information described above.