IMImobile PLC · IMImobile PLC Interim Results Overview –Six Months Ended 30 September 2017 Jay Patel, ... Cisco, Genesys, Netcracker Shortlisted for UK National Innovation

Interim Results Presentation FY18, 30 September 2017

IMImobile PLCInterim Results Overview – Six Months Ended 30 September 2017

Jay Patel, Chief Executive Officer

Mike Jefferies, Chief Financial Officer

November 2017

Interim Results Presentation FY18, 30 September 2017 2

IMImobile sits at the heart of digital customer interactions

Who we are What we do Why clients use us

SITASITA

SITASITA

▪ Market leader of cloud communication

software and services for digital

interactions

▪ Profitable and cash generative growth

for more than 10 years

▪ 950+ employees globally, HQ in London,

offices in Atlanta, Dubai, Hyderabad and

Johannesburg

▪ Provide software and tools to help

businesses automate and improve

customer interactions

▪ Enable businesses to use mobile and

digital technologies to communicate

better with customers whilst reducing

costs

▪ Best of breed – over 15 years

experience in managing digital

communication channels

▪ Innovation – strong track record of

delivering innovation for leading

enterprises

▪ Enterprise grade – 24/7 global cloud

managed service infrastructure


▪ Revenue up 48% to £53.1m

▪ Gross profit up 22% to £24.7m

▪ EBITDA up 8% to £5.7m

▪ Adjusted profit after tax up 3% to £3.3m

▪ Diluted adjusted EPS up 1% to 4.8p

▪ Cash generated from operating activities of £5.7m

representing operating cash conversion of 100%

Operational Highlights

Financial Highlights

▪ Continued organic growth – 10% organic gross profit growth, the Group has grown organically in every reporting period since IPO in H1 2014

▪ Consolidated UK market position – established leader in digital and mobile notifications in key consumer vertical (financial services, logistics, utilities, telecoms)

▪ Acceleration of partnership activities – new commercial and technical partnerships established (BT, KCOM, NICE inContact)

▪ Strong growth in SEA – deployments under new relationship with Telenor Group progressing well

▪ US investment – signed first enterprise client through reseller agreement with US mobile operators; post period acquisition of Sumotext completed

▪ Synergies from acquisitions starting to progress – cross selling of core IMImobile products to clients of Textlocal, Archer Digital and Infracast

Strong profitable cash generative growth

11.212.7

13.5

16.6

20.2

24.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

FY13 FY14 FY15 FY16 FY17 FY18

H1 Gross Profit £m

2.5

3.43.8

4.5

5.3

5.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0


H1 EBITDA £m


The challenges we help

our clients with

4

How we help

our customers


The challenge of managing digital customer interactions

Disparate legacy

systems

Business

Applications

Communication

Channels

5

Appointment Reminders

Fraud Alerts

Parcel Notifications

Live Chat

Music & video content

FAST CHANGING

TIME CONSUMING

COMPLEX

REGULATIONS


IMIconnect video

6

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

7

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 integrations

Recognition

Cisco, Genesys, Netcracker

Shortlisted for UK National Innovation

Award 2017 (Virtual Customer Assistant)

Best Cloud Communications Software

Company2017 (TMT Technology Award)

New features

Consent Management for

GDPR compliance


We power banking alerts and notifications across all channels

Delivering messaging strategies

for three of the top four UK retail

banking groups.

▪ Over 14 different notifications

▪ Alerts for cash withdrawal, direct debit

account balances, transfer funds etc.

Proactive Alerts &

Notifications

▪ IMIchat used for multi-channel two-way

customer service interactions across SMS

and Facebook Messenger

▪ IMIconnect used across several Line of

Businesses for Fraud Management, Account

Management and e-billing use cases

My BankMy Bank

Customer Self Care

Chatbots on FB

▪ Real time account balances

▪ Transfer funds

▪ Report a stolen card

My Bank

My BankMy Bank

My Bank


We enable proactive two way communications for leading utilities

Delivering proactive communication

to avoid inbound calls into Call

Centres for low value enquiries such

as meter readings.

▪ Two-way actionable communication

▪ On customer’s preferred messaging channel

▪ Automated creation of service ticket in underlying system

▪ Sent only during social hours

▪ Conversational approach to improve customer experience

Engineer Bookings &

Appointment Reminders

Meter Reading &

Customer Invoicing


We support digital lifestyle services for large mobile operator groups

▪ Live in 20 countries

▪ 100 million charging transactions

▪ 17 million unique users per month

Delivering innovative

entertainment services

▪ Self-care via FB Messenger

▪ 6 different functions, e.g. top-ups

▪ Seamless agent handover via live-chat

Virtualising network

capabilities and services

Deploying new customer

self-care solutions

Helping mobile operators to

utilise digital communication

channels to optimise

customer experience for rich

digital content services.

▪ Cloud Digital Service Delivery Platform

▪ VAS Virtualisation System and services


Investing in AI, automation and new communication channels

Chatbot - Customer Service

Automation

RCS - The Next-generation

Messaging Standard

AI & NLP - Conversational

Customer Engagement


Financial ResultsSix months ending 30 September 2017

12


Commercial model

20% 40% 25% 15%Fixed fees Usage based Transactional Non

recurring

Monthly Recurring Revenue(MRR)

Gross Profit Split*

Volume of e-mail, SMS, MMS,

push notification, sessions etc.Licences & one-off professional

services

Contracted revenues

Fees based on revenue transactions

~85%

13

*Indicative Gross Profit Split


Strong financial performance (Financial Results Six Months Ended 30 September 2017)

Revenue up 48% (organic 12%) to £53.1m (2016: £36.0m)

Gross profit up 22% (organic 10%) to £24.7m (2016: £20.2m)

EBITDA up 8% to £5.7m (2016: £5.3m)

Adjusted profit after tax up 3% to £3.3m (2016: £3.3m)

Diluted adjusted EPS growth of 1% to 4.8p (2016: 4.8p)

Cash and cash equivalents at 30 September 2017 of £15.4m (31 March 2017: £14.7m)

Financial highlights

14

11.212.7

13.5

16.6

20.2

24.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0


H1 Gross Profit £m

2.5

3.43.8

4.5

5.35.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0


H1 EBITDA £m

18.7 20.5 21.5

27.8

36.0

53.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0


H1 Revenue £m


Continued investment in future growth

▪ Major deployments

▪ US

Continued investment in future growth

▪ Sales & Marketing

▪ Partnerships

▪ Textlocal India

September September

21%

23% 56%

14%

33% 53%

82%

Growth in all key metrics

Period endedSep-17

£m

Sep-16

£m

Growth

%

Revenue 53.1 36.0 +48%

Gross profit 24.7 20.2 +22%

Administrative

expenses (excluding D&A)(19.0) (14.9) +27%

EBITDA 5.7 5.3 +8%

EBITDA margin* 23.1% 26.0%

Profit before tax 4.1 4.1 +1%

Diluted EPS 4.8p 4.8p +1%

Adjusted trading performance

15

Gross profit split

*EBITDA margin calculated as EBITDA over Gross Profit

3 Year Performance

Revenue CAGR of 35% | Gross profit CAGR of 22% | EBITDA CAGR of 15%


Strong financial position

AssetsSep-17

£m

Mar-17

£m

Cash

Trade receivables

Pass through revenues

Other current assets

15.4

27.4

3.2

4.5

14.7

20.5

5.2

4.8

Current assets 50.5 45.2

Goodwill

Acquired intangibles

Other intangible assets

PPE

Other non-current assets

25.1

5.1

5.9

5.5

0.3

25.3

5.9

4.1

6.0

0.3

Non-current assets 41.9 41.6

Total assets 92.4 86.8

Net Assets 51.0 50.8

Minimal debt

Ability to leverage

High quality receivable

LiabilitiesSep-17

£m

Mar-17

£m

Trade payables and accruals

Pass through revenues

Other current liabilities

26.2

5.5

8.1

20.7

6.6

6.8

Current liabilities 39.8 34.1

Non-current liabilities 1.6 1.9

Total liabilities 41.4 36.0

Balance sheet

16


Excellent cash conversion

Period endedSep-17

£m

Sep-16

£m

Cash generated from operations 5.7 6.4

Net cash from operations 5.5 5.8

Investing activities (3.0) (2.2)

Financing activities (0.1) 0.1

Cash and cash equivalents at

beginning of period14.7 15.0

Foreign exchange on opening

balances(1.7) (0.8)

Cash and cash equivalents at

end of period15.4 17.9

100% conversion of EBITDA to cash from operations

Strong cash position

Cashflow

17

6.6

8.7 8.2 8.810.4

-10.0

-4.6

-9.4

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

Net cash from operating activities (£m) Acquisitions (£m)

Historic Cash Generation

FY15 FY16 FY17FY14FY13


Regional UpdatesSix months ending 30 September 2017

18


Europe & Americas

Revenue up 83% to £35.2m (2016: £19.2m)

Gross profit up 30% (organic 7%) to £13.7m (2016: £10.6m)

Gross margin 39.1% (2016: 55.2%)

Financial highlights Operational highlights

19

SITASITA

UK market leader for digital notifications in financial services sector

(now serving three of the top four UK retail banking groups)

New client wins in UK and US for automation of customer service interactions

in logistics, retail and utilities sector (deployment begins Q1 2018)

Established commercial partnership and reseller agreements with BT, KCOM,

NICE inContact, and SITA

Textlocal has grown strongly Year-on-Year and continues to attract significant

new clients in the leisure, gambling, insurance and public sector

Post period, completed acquisition of Sumotext – provides strong cross selling

opportunities of IMI products to the enterprise market in the US0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

FY14 FY15 FY16 FY17 FY18

H1 Gross Profit £m

MRR License & professional services

5.56.6

9.9 10.6

13.7


Strategic acquisition

M&A Highlight

Leading provider of mobile messaging solutions in the US, founded in 2007

Established client base in government, travel, retail, healthcare sector as well as brands, agencies and non-profit organisations

Complementary customer and product portfolio, providing significant cross-sell and up-sell opportunities into US enterprise market

Consideration between $4.5m and $6.0m payable in cash

Expected to enhance Group earnings during the year ending 31 March 2019

Clients include:

20


Middle East & Africa

Revenue down 21% to £9.1m (2016: £11.6m)

Gross profit down 17% to £5.6m (2016: £6.7m)

Gross margin 61.4% (2016: 58.2%)


21

SITA SITA

Launched new entertainment services with MTN to support it’s rich digital

content service offering across Africa

Re-branded Archer Digital to IMImobile South Africa

Expect deployment of IMIconnect and IMIcampaign into a new banking client

in Q1 2018

Secured new client, a leading PayTV operator and signed partnership

agreement with Blue Label Mobile, South Africa’s leading telecom distributor

Nigeria now represents 2% of gross profit vs 6% in FY17

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0


H1 Gross Profit £m


4.14.4 4.5

6.7

5.6


India & South East Asia

Revenue up 69% to £8.8m (2016: £5.2m)

Gross profit up 84% to £5.3m (2016: £2.9m)

Gross margin 60.1% (2016: 55.3%)


22

SITASITA

Strong performance driven by deployments for Telenor Group in Malaysia,

Bangladesh, Thailand and in the public sector for Government of Telangana

Continued to grow business by working with brands and agencies as they start

to utilise mobile for customer communications

Business in Myanmar is growing, further opportunities for growth in the telecom

and enterprise market

Textlocal India has grown significantly and we continue to invest in customer

acquisition through digital marketing

0.0

1.0

2.0

3.0

4.0

5.0

6.0


H1 Gross Profit £m


3.1

2.52.2

2.9

5.3


Growth Strategy

23


Growth strategy

24

Grow revenue from

existing customers

Accelerate growth via

channel partners

Continue investment in

products + technology

Strategic

acquisition

Expand

geographic footprint

28 customers >£0.5m (FY17)

32 customers >£0.5m (projected)

Invest in new technologies ahead of

market demand and leverages new

emerging communication channels

Extend distribution of products

through channel partners via

joint go-to-market initiatives

Maintain a strong balance sheet

to pursue acquisitions that meet

IMI’s strict acquisition criteria

Become the trusted technology

vendor for digital customer interaction

and maximise cross-selling

opportunities

Focus on expansion in strategic

geographic markets (US, Germany,

South Africa, and South Asia).


Summary and outlook

Favourable market dynamics with continued momentum of digital transformation and automation

Market leading position and long standing client relationships provides solid foundation for organic growth

Acceleration of growth through partnerships

Continued investment in partnerships, product, sales and marketing

FY18 trading in line with expectations

25

London

IMImobile Europe Ltd.

5 St John’s Lane

London

EC1M 4BH

United Kingdom

Hyderabad

IMI Mobile Pvt. Ltd

Plot No. 770

Road No. 44

Jubilee Hills

Hyderabad – 500 033

Dubai

IMImobile VAS Ltd. FZE

P.O. Box 293593

Office # 624, Building 5EA

Dubai Airport Free Zone,

Dubai, U.A.E

Atlanta

IMImobile Inc.

Tower Place 200

3348 Peachtree Rd. NE.

Atlanta, GA. USA.

30326

Johannesburg

IMImobile SA

Clearwater Office Park,

Building no. 3, First Floor.

Corner Christiaan De Wet and

Millennium Boulevard,

Strubensvalley,

Roodepoort, Gauteng,

South Africa

High Wycombe

IMImobile Europe Ltd.

Tempus Court

Bellfield Road

High Wycombe

HP13 5HA

United Kingdom

Thank you

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

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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

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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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Documents

IMImobile PLC · IMImobile PLC Interim Results Overview –Six Months Ended 30 September 2017 Jay Patel, ... Cisco, Genesys, Netcracker Shortlisted for UK National Innovation