IMImobile PLC · Salesforce, Cisco, Pega Amazon Web Services (AWS) ... *Stats & infographic taken...

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


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


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


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

4

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


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


EBITDA (£m)


Market Trends &

Products Overview

5


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

6

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

1

2


The challenge of managing digital customer interactions

Disparate legacy

systems

Business

Applications

Communication

Channels

7

Appointment Reminders

Fraud Alerts

Parcel Notifications

Live Chat

Music & Video Content

FAST CHANGING

TIME CONSUMING

COMPLEX


IMIconnect video

8

https://www.youtube.com/watch?v=-tm30YlaZEs





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

9

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’


Financial ResultsResults Year Ended 31st March 2017

10


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


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%


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

13


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

14


Regional UpdatesYear Ended 31st March 2017

15


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%)


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


16

11.3

16.4

19.922.9

FY14 FY15 FY16 FY16

Europe & Americas gross profit (£m)

MRR License / one-off / professional services

FY17

SITASITA


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

17

Spain


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%)


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


18

SITA SITA

10.78.6

11.3

13.5

FY14 FY15 FY16 FY16

MEA gross profit (£m)


FY17


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.

19

*Stats & infographic taken from GSMA report – The Mobile Economy Africa 2016


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%)


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


20

SITASITA

5.95.0 5.3

7.0

FY14 FY15 FY16 FY16

India & SEA gross profit (£m)


FY17


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


Growth Strategy

22


Consistent growth strategy

23

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


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

[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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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

invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company or in any other entity, nor

shall this document or any part of it, or the fact of its presentation, form the basis of, or be relied on in connection with, any contract or investment decision, nor

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

The information in this presentation includes forward-looking statements that are based on the Company's or, as appropriate, the Company's directors' current

expectations and projections about future events. These forward-looking statements may be identified by the use of forward-looking terminology, including

without limitation the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or their negative or other

variations or comparable terminology, or by discussion of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements, as well as

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

indicated in these forward-looking statements. Forward-looking statements may differ from actual results and none of the future projections, expectations,

estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or

guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the

case of the assumptions, fully stated in the presentation. Statements contained in this document regarding past trends or activities should not be taken as a

representation that such trends or activities will continue in the future.

The information contained in this presentation, including any forward-looking statements, is provided as at the date of this presentation.

Subject to its disclosure obligations neither the Company nor any of its affiliates, or individuals acting on its behalf, undertakes to publicly update or revise any

forward-looking statements or other information in this presentation, whether as a result of new information, future events or otherwise. As a result of these

risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements as a prediction of actual results of the Company

or otherwise.

The information and opinions contained in this presentation and any other are material discussed verbally are subject to verification, completion and change

without notice. Neither the Company nor its advisers and/or agents undertakes any obligation to provide any recipient with access to any additional

information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent.

No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its affiliates (within the meaning of Rule 405

under the US Securities Act 1933) members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the

information or opinions contained in this presentation or any other material discussed verbally. None of the Company or any of its affiliates (as defined above),

members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this

presentation or its contents or otherwise arising in connection with it.

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