Slide 1: First Half 2013 Financial Results
driving trust INSIDE Secure First Half 2013 Financial Results August 2, 2013 1 FIRST HALF 2013 EARNINGS PRESENTATION
Slide 2: Disclaimer
Disclaimer This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of INSIDE Secure. This communication contains certain statements that are neither reported financial results nor other historical information and othe
Slide 3: Agenda
Agenda H1 2013 key highlights Q2 Revenue and Half Year Financial Overview Outlook for 2013 Q&A Appendix 3 FIRST HALF 2013 EARNINGS PRESENTATION
Slide 4: H1 2013 key highlights
H1 2013 key highlights Q2 Revenue and Half Year Financial Overview Outlook for 2013 Q&A Appendix 4 FIRST HALF 2013 EARNINGS PRESENTATION
Slide 5: H1 2013 key highlights
H1 2013 key highlights • H1 2013 consolidated revenue up 14% year-on-year at $70.8 million • Sharp reduction in adjusted operating loss, down 61% year-on- year, at $6.3 million • ESS integration completed, with favourable business momentum • On-going strategic shift towards security solutions for mo
Slide 6: Q2 Revenue and Half Year Financial Overview
H1 2013 key highlights Q2 Revenue and Half Year Financial Overview Outlook for 2013 Q&A Appendix 6 FIRST HALF 2013 EARNINGS PRESENTATION
Slide 7: Revenue Q2-2013
Revenue Q2-2013 Q2-2013 Q2-2012 Q1-2013 % Change % Change in thousands of US$ consolidated consolidated consolidated annual sequential Mobile NFC 9 502 8 348 4 534 14% 110% Secure Payment 7 053 7 038 10 703 0% -34% Digital Security 13 915 12 789 12 251 9% 14% Embedded Security Solutions 6 255 - 6 55
Slide 8: Revenue H1-2013
Revenue H1-2013 H1-2013 H1-2012 H2-2012 % Change % Change in thousands of US$ consolidated consolidated consolidated annual sequential Mobile NFC 14 036 22 606 20 655 -38% -32% Secure Payment 17 756 14 866 16 922 19% 5% Digital Security 26 166 24 728 21 430 6% 22% Embedded Security Solutions 12 807
Slide 9: Income statement H1-2013
Income statement H1-2013 H1-2013 H1-2012 Favourable and evolving product mix • Gross margin growth driven by ESS in thousands of US$ consolidated consolidated acquisition • Significant gross margin improvement Revenue 70 765 62 200 in Secure Payment Cost of sales (49 944) (47 726) Gross margin 20 82
Slide 10: Mobile NFC
Mobile NFC Revenue (in $m) Adjusted operating income (in $m) 22 606 (38%) 14 036 (13 433) (16 386) H1-2012 H1-2013 96% 72% 9 502 H1-2012 H1-2013 +110% 4 534 2012 2013 x % Adjusted operating income in % of revenue Q1-2013 Q2-2013 X% Revenue growth in % • Doubled Q2 revenues compared to prior quarter
Slide 11: Secure Payment
Secure Payment Revenue (in $m) Adjusted operating income (in $m) 17 756 8% +19% 14 866 1 432 H1-2012 H1-2013 (2 410) 10 703 (34%) (16%) 7 053 H1-2012 H1-2013 2012 2013 x % Adjusted operating income in % of revenue Q1-2013 Q2-2013 X% Revenue growth in % • Increase in H1 revenue by 19% mainly driven b
Slide 12: Digital Security
Digital Security Revenue (in $m) Adjusted operating income (in $m) 24 728 +6% 26 166 17% 11% 4 110 2 783 H1-2012 H1-2013 H1-2012 H1-2013 +14% 13 915 12 251 2012 2013 x % Adjusted operating income in % of revenue X% Revenue growth in % Q1-2013 Q2-2013 • Revenue growth (+14% in Q2 2013 and +6% in H1 2
Slide 13: Embedded Security Solutions
Embedded Security Solutions Revenue (in $m) Adjusted operating income (in $m) 12 807 32% 4 092 H1-2012 H1-2013 - H1-2012 H1-2013 6 552 6 255 (5%) Q1-2013 Q2-2013 • Sizeable favourable impact of ESS on consolidated gross margin and operating result with 32% adjusted operating income on revenue • Soli
Slide 14: Cash flow H1-2013
Cash flow H1-2013 In millions of US$ 80,0 Net income excluding non- 70,0 cash items 5.9 Change in working (5.9) capital 60,0 66.2 (9.4) Capital expenditures ESS 50,0 99.1 (3.4) earn-out Other (5.2) (0.6) 40,0 99.1 41.8 30,0 Change in working capital (inventories, trade accounts receivable including
Slide 15: Strong balance sheet
Strong balance sheet Assets As of June 30, 2013 Equity & liabilities Goodwill 15 068 13 262 Research tax credit (net of financing) PP&E and intangible assets 48 085 7 330 Other receivables (net) 19 797 Trade receivables 100 708 Equity Other non-current assets 1 124 Working capital 18 026 23 596 Inve
Slide 16: Outlook for 2013
H1 2013 key highlights Q2 Revenue and Half Year Financial Overview Outlook for 2013 Q&A Appendix 16 FIRST HALF 2013 EARNINGS PRESENTATION
Slide 17: Outlook for 2013
Outlook for 2013 • Expected finalization of the reorganization by the end of 2013, aiming at reducing operating expenses by $13 million on an annualized basis • Full effect of these cost reductions expected from the 4th quarter of 2013 onwards • Pursue of the Group’s strategic shift in order to stre
Slide 18: Appendix
H1 2013 key highlights Q2 Revenue and Half Year Financial Overview Outlook for 2013 Q&A Appendix 18 FIRST HALF 2013 EARNINGS PRESENTATION
Slide 19: Definitions
Definitions • Adjusted measures ─ Certain financial measures and performance indicators are presented on an adjusted basis as defined below. These indicators should be considered to be supplementary information, not substitutable for any other indicators of operating and financial performance that a
Slide 20: P&L reconciliation from IFRS to Adjusted H1-2013
P&L reconciliation from IFRS to Adjusted H1-2013 H1-1 2013 Business Sharebased Other non- H1-1 2013 in thousands of US$ IFRS combination payments recurring costs Adjusted Revenue 70 765 - - - 70 765 Cost of sales (49 944) 5 976 54 - (43 915) Gross margin 20 821 5 976 54 - 26 850 in % of revenue 29,4
Slide 21: P&L reconciliation from IFRS to Adjusted H1-2012
P&L reconciliation from IFRS to Adjusted H1-2012 H1-1 2012 Business Sharebased Other non- H1-1 2012 in thousands of US$ IFRS combination payments recurring costs Adjusted Revenue 62 200 62 200 Cost of sales (47 726) 1 077 69 (46 581) Gross margin 14 473 1 077 69 - 15 619 in % of revenue 23,3% 25,1%
Slide 22: Investor Information
Investor Information Contacts INSIDE Secure Brunswick INSIDE Secure Corporate communication Financial communication Investor relations Géraldine Saunière Jérôme Biscay, Alexandra van Richard Vacher Detournière Marcom Director Weddingen Directeur général finances +33 (0) 4 42 39 33 01 +33 (0) 1 53 96