IMImobile PLCselling begun with first major sale of IMIconnect in South Africa 11.2 12.7 13.5 16.6...

IMImobile PLCUnaudited Interim Results Overview - Financial Year 2017

Jay Patel, Chief Executive Officer

Mike Jefferies, Chief Financial Officer

November 2016

IMImobile is…

2

…with a track record of international service delivery

…an established software provider … operating in fast growing markets

… for our clients worldwide

Helping companies to engage with their customers on digital channels

16 years experience in mobile

Delivering services in 60+ countries from cloud infrastructure

Profitable and cash generative for more than 10 years

Offices in London, Atlanta, Dubai, Hyderabad and Johannesburg

800+ employees worldwide

Rapid growth of smartphone usage globally

Customers increasingly demand mobile experiences

Companies recognise they need to invest in mobile and digital

Delivery of multi-channel communication, across multiple

organisation departments and in different geographies is complex

2003 First products sold in India and $1m revenue

2007 Internationalisation began

2010 Acquisition of WIN plc (AIM listed)

2012 IBM licensed IMIdigital in 17 countries

2014 AIM Listing and acquisition of Textlocal

2015 Acquisition of Archer Digital and launch of Textlocal in India

Interim Results Overview - Financial Year 2017

o Revenue up 29% to £36.0m (2015: £27.8m)

o Gross profit up 22% to £20.2m (2015: £16.6m)

o EBITDA up 17% to £5.3m (2015: £4.5m)

o Adjusted profit after tax up 22% to £3.3m (2015: £2.7m)

o Diluted adjusted EPS growth of 18% to 4.8p (2015: 4.1p)

o Cash and cash equivalents at 30 September 2016 of £17.9m (31 March 2016: £15.0m)

3

Strong growth across all business units driven by demand for digitising consumer interactions

Operational Highlights

Financial Highlights

o Strong Organic growth - organic gross profit growth of 14% across the Group (7% in

Europe and Americas, 21% in MEA, 31% in India and SEA)

o Increased proportion of recurring revenues – MRR growth year on year of 25%,

representing 94% of gross profit (2015 92%)

o Strategic client win – new major mobile operator relationship in the US

o New product releases - launch of new version of IMIchat with significant initial traction

from end user customers and channel partners

o Acquisitions integrating well - Textlocal international expansion progressing with 5,000+

paying customers in India and recent launch in Myanmar; Archer integration and cross

selling begun with first major sale of IMIconnect in South Africa

11.212.7 13.5

16.6

20.2

0.0

5.0

10.0

15.0

20.0

25.0

FY13 FY14 FY15 FY16 FY17

H1 Gross Profit £m

2.5

3.4

3.8

4.5

5.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

FY13 FY14 FY15 FY16 FY17

H1 EBITDA £m


Market Trends, Products & Commercial ModelA fast growing business.

5

Shift towards mobile and digital customer engagement

70% of world's population

will be using smartphones

by 2020, reaching 6.1bn

Rise of chat apps: there will

be 2bn mobile messaging

app users by 2018

By 2017, mobile payment

will reach $780bn, $930bn

in 2018 and $1.08tn in 2019

e-commerce shopping is

shifting from website to

conversational shopping

The digital revolution has forever changed the balance of power

between businesses and their customers.

Ericsson Mobility Report, Digital Strategy Consulting, Shopify, NFC World


6

We simplify channel complexity by helping automate and orchestrate mobile customer interactions

Enterprises

Sales Systems

Marketing Systems

Operations Systems

Support Systems

Explosion of channels combined

with device and messaging

proliferation

Challenge to scale and deliver enterprise-

grade multi-channel services for mobile

across legacy systems

Appointment

Reminders

Delivery

Notifications

Bank Alerts

Live chat

Music & video

content

Product portfolio built on our

global cloud infrastructure


7

Financial Services

Utilities Retail HealthcarePublic Sector

Contact Centre

Logistics Travel

ConnectivityIntelligent Network

GatewaysPayments

Device

Optimisation

Voice

Gateway

13 billion

messages p.a.

14 billion billing

transactions p.a.

10,000+ device

fingerprints in DB

15 billion voice

flows p.a.

600+ services

deployed

24/7 Global Managed Service InfrastructurePrivate cloud co-located in five Tier 3 and Tier 4 data centres across UK, US and India.

Enterprise cloud comms

platform enabling IT to create &

deliver multi-channel customer

journeys

Real-time, interactive multi-

channel campaigns at each point

of the customer life cycle

Content management and

digital service delivery

platform application, utilised

across the world

Application for two-way

interactive text based

messaging in contact centres

Enables broadcasters to

centralise, manage and

interact with audiences via

social media

A cloud-based platform that

enables businesses of any

size to harness the power of

SMS messaging.

IMIcloud

○ Global scalability ○ Potential for operational leverage

Our global cloud infrastructure supports billions of mobile interactions


Commercial model

8

*Approximate split

Volume of e-mail, SMS, MMS,

push notification, sessions etc.

Licences &

one-off

professional services

Contracted revenues

15% 40% 40% 5%Fixed fees Usage based Transactional Non

recurring

Monthly Recurring Revenue(MRR)

Gross Profit Split*

Fees based on revenue transactions


Financial ResultsSix months ending 30th September 2016.

10

Growth in all key metrics

Gross Profit Split

Six months toSep-16

£m

Sep-15

£m

Growth

%

Revenue 36.0 27.8 +29%

Gross profit 20.2 16.6 +22%

Administrative

expenses(16.1) (13.2) +23%

EBITDA 5.3 4.5 +17%

Operating profit 4.1 3.4 +20%

Diluted adjusted EPS 4.8p 4.1p +18%

Trading Performance


11

Strong financial position

AssetsSep-16

£m

Mar-16

£m

Cash

Trade receivables

Pass through revenues

Other current assets

17.9

18.0

6.1

5.4

15.0

16.9

3.1

4.4

Current assets 47.4 39.4

Goodwill

Acquired intangibles

Other intangible assets

PPE

Other non-current assets

20.1

2.1

2.7

5.3

0.9

19.8

2.3

2.0

4.7

0.7

Non-current assets 31.1 29.5

Total assets 78.5 68.9

Net Assets 46.8 43.6

No debt

Ability to leverage

High quality receivable

LiabilitiesSep-16

£m

Mar-16

£m

Trade payables and accruals

Pass through revenues

Other current liabilities

17.3

9.1

4.4

14.4

6.3

3.8

Current liabilities 30.8 24.5

Non-current liabilities 0.9 0.8

Total liabilities 31.7 25.3

Balance Sheet


12

Excellent cash conversion

Six months toSep-16

£m

Sep-15

£m

Cash generated from operations 6.4 4.3

Net cash from operations 5.6 3.8

Investing activities (2.2) (4.7)

Financing activities 0.1 0.0

Cash and cash equivalents

at beginning of period15.0 14.6

Foreign exchange on opening

balances(0.6) (0.2)

Cash and cash equivalents

at end of period17.9 13.5

122% conversion of EBITDA to

cash from operations

Acquisitions paid for out of cash

generated from operations

Strong cash position

Cashflow


Regional UpdatesSix months ending 30th September 2016.

14

Regional Overview – Europe & Americas

0.0

2.0

4.0

6.0

8.0

10.0

12.0

FY14 FY15 FY16 FY17

H1 Gross Profit £m

MRR License & professional services

o Responsible for 53% of Group gross profit (2015: 59%)

o 7% organic gross profit growth (2015: 17%)

o Gross margin 55% (2015: 59%)

o Progress in cloud-communication products IMIconnect, IMIchat,

IMIcampaign and Textlocal

o Initiated channel partner strategy and signed first partnership

agreement for IMIchat

o New client wins across the retail, gambling and media sector

o New relationship with tier one US mobile operator to provide

multi-channel marketing campaign platform and services

o Launched IP messaging with O2 and Facebook Messenger with

our largest banking client



5.5

6.6

9.9

10.6


15

New customer interaction channels for our clients

Push Notification with O2 Facebook Messenger Customer Service


16

Regional Overview – Middle East & Africa

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

FY14 FY15 FY16 FY17

H1 Gross Profit £m



o 21% organic gross profit (2015: -2%), 51% overall gross profit growth

o Gross margin 58% (2015: 73%), reflecting impact of Archer

o Long term multi-territory relationships with major operator groups

o Growth driven by consumers taking additional content services and

roll-out of deployments under existing agreements

o New contracts signed will drive growth in following periods

o Strong synergies from Archer Digital - sold IMIconnect into largest

banking client and Archer has supported various video and MMS

initiatives across the Group



4.14.4 4.5

6.7


17

Strong long-term relationship with Africa’s largest operator Groups

Delivering service to the largest mobile operator groups across 35 countries in Middle East and Africa.

o 35+ countries

o 18,000+ live services

o 60m subscribers

o 5m portal visitors per day

SA Rand

Nigerian Naira

Euro linked

Dollar linked

Indian rupee

Other

MEA GP split by currency

41%

19%

16%

9%

6%

9%

Within the Group there is a natural cost hedge

against the Rand, Euro, Dollar and Rupee, however

no costs are incurred in Naira.

Indian Rupee


18

Regional Overview – India & SE Asia

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

FY14 FY15 FY16 FY17

H1 Gross Profit £m



o 31% organic gross profit growth (2015: -11%)

o Gross margin 55% (2015: 45%)

o Deepened position with two major operator groups through

consolidation of VAS infrastructure

o Several new client wins across the enterprise, brand and agency

building on growth initiatives from previous periods

o Textlocal India has continued to grow with now more than 5,000

paying customers

o Good continued traction in new geographies; Myanmar and Sri Lanka


Financial Highlights3.1

2.5

2,2

2.9


19

Ooredoo Myanmar launches white label Textlocal product

o Greenfield opportunity for

product in fast growing

market

o Fast regional deployment

with limited operational

costs and technical

development

o Sales and distribution

through existing client


Growth strategy

20

Existing Customers

Product Innovation

Channel Strategy

Several active acquisition discussions with business that meet acquisition criteria. (recurring relationships with large blue-chip corporates, complementary product sets, existing geographic locations)

Acceleration of growth through additional distribution by partners has begun, additional

investment required in training and technology integrations.

Continued investment in intellectual property that drives digital interactions including

Natural Language Processing (NLP) and analytics.

Geographic Expansion Focus on successful foundation in select geographic markets (US, Myanmar, South Asia).

Organic Growth

Objective of being trusted technology vendor of customer communication software.

Strategy of investing in technologies that leverage emerging communication channels is

working with success in cross-selling and managing more digital interactions.

Inorganic Growth

M&A


21

Summary and outlook

o Continued strong organic growth across all businesses units

o Extending reach through new customers, new channels, new geographies and product innovation

o Favourable market dynamics with fundamental and rapid shift towards digitisation

o Whilst currency markets continue to be volatile, the full financial year broadly in line with market expectations


London

IMImobile Europe Ltd

5 St Johns Lane

EC1M 4BH

London

United Kingdom

Phone: +44 20 300 86232

[email protected]

Atlanta

IMImobile Inc

Tower Place 200

Atlanta, GA

30326

United States

Phone: +1 470 216 1984

[email protected]

Dubai

IMImobile VAS Ltd FZE

P.O. Box 293593

Office # 624, Building 5EA

Dubai Airport,

U.A.E.

Phone: +971 46091 690

[email protected]

Hyderabad

IMImobile Pvt. Ltd

Plot No. 770, Road No 44

Jubilee Hills

Hyderabad

India

Phone: +91 40 23 555 945

[email protected]

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

[email protected]

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does it constitute a recommendation regarding the securities of the Company or any other company.

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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

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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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IMImobile PLCselling begun with first major sale of IMIconnect in South Africa 11.2 12.7 13.5 16.6...

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