Slide 1: Full-Year 2020 Financial Results
Full-Year 2020 Financial Results March 10, 2021 Amede D A gel , Chai ma & CEO Richard Vacher Detournière, GM & CFO Copyright © 2021 Verimatrix. All Rights Reserved. 1
Slide 2: Disclaimer
Disclaimer This document was prepared by Verimatrix and is provided for information purposes only. It is public information only. T e e a c de ae e a a e, a be dee ed be, f ad g ae e a d a c de ec ons and estimates and their underlying assumptions, statements regarding plans, objectives, intentions
Slide 3: Resilient 2020 annual performance in a challenging context
Resilient 2020 annual performance in a challenging context Transition to subscription-based and SaaS business accelerating $95 million revenue in 2020 - Consolidated revenue (IFRS) down only 3% year- over-year fdfdfdfdfdfdfd Recurring revenue: 58% of revenues (55% in 2019). Strong growth of subscrip
Slide 4: Resilient 2020 annual performance in a challenging context
Resilient 2020 annual performance in a challenging context $24 million EBITDA* in 2020 (25.3% of revenue), up vs. 2019 Operating margins at a record high Core business EBITDA up 16% year-over-year* Operating income (IFRS) of 11.8 million (12.4% of revenue) x 3.9 year-over-year Continuous investment
Slide 5: Verimatrix Safeguards An Unprotected World
Verimatrix Safeguards An Unprotected World Copyright © 2021 Verimatrix Verimatrix. -All AllRights RightsReserved. Reserved 5
Slide 6: Flexible deployment options
Flexible deployment options We c e egac -prem operations with an easy migration path toward and innovative, cost-effective SaaS model. Verimatrix On-Premise Verimatrix SaaS Verimatrix turnkey installation, with 24/7 From video operators, OTT service providers, to global support to quickly address an
Slide 7: Financials
Security Made for People Financials Copyright © 2021 Verimatrix. All Rights Reserved. 7
Slide 8: Q4 2020 revenue
Q4 2020 revenue Q4-2019 Q42020 vs. Q4-2020 (in thousands of US$) (IFRS) Q42019 Software business 24 444 32 342 -24% NFC patent licensing program - 323 - Revenue 24 444 32 665 -25% Q4 2019: high comparison basis (one license for $5.4m with an operator in Asia). Q4 2020: - C e dec bac de 2021 f b dge
Slide 9: Full-year 2020 revenue
Full-year 2020 revenue FY2020 vs. FY2019 FY2020 vs. FY2019 FY2019 FY2020 (pro forma FY2019 (IFRS) (pro forma adjusted) (IFRS) (in thousands of US$) adjusted) Software business 94 893 94 289 102 904 1% -8% NFC patent licensing program - 3 870 3 870 - - Revenue 94 893 98 159 106 774 -3% -11% Core soft
Slide 10: FY 2020: All-time record EBITDA thanks to tight control of Opex
FY 2020: All-time record EBITDA thanks to tight control of Opex and full year impact of 2019 cost synergy plan (in million US$) 2020 2019 (*) Revenue 94,9 106,8 Adjusted gross profit 78,1 85,7 As a % of revenue 82,3% 80,2% Research and development expenses (20,5) (23,3) Selling and marketing expense
Slide 11: FY 2020: Strong growth of IFRS operating income
FY 2020: Strong growth of IFRS operating income (in million US$) 2020 2019 (*) Adjusted operating income/(loss) 19,7 23,9 Fair value adjustment on deferred revenue (**) - (1,5) Amortization and depreciation of assets acquired through business (5,1) (4,5) combinations (**) Acquisition related expense
Slide 12: FY 2020: Cash flows reflecting operating performance and financing structure
FY 2020: Cash flows reflecting operating performance and financing structure (in million $) 2020 2019 Cash generated by / (used in) continuing operations before changes in working capital 22,2 18,3 Cash generated by / (used in) changes in working capital from continuing operations (9,7) (13,9) Cash
Slide 13: FY 2020: Strong balance sheet no short-term debt
FY 2020: Strong balance sheet no short-term debt December 31, December 31, December 31, December 31, (in million $) 2020 2019 (in million $) 2020 2019 Equity and retained earnings 147,4 156,4 Goodwill and intagible assets 136,6 136,9 Property and equipment 12,6 15,5 Borrowings 55,1 56,6 Other receiv
Slide 14: Business Outlook & Objectives
Security Made for People Business Outlook & Objectives Copyright © 2021 Verimatrix. All Rights Reserved. 14
Slide 15: Business Outlook and Objectives for 2021
Business Outlook and Objectives for 2021 Focused on executing strategy, and, in particular: Support OTT market poised for significant growth Expand application shielding business (in particular for Fintech, Healthtech, and industrial shift to Digital applications) Increase cross-selling and up-selli
Slide 16: Appendix
Appendix
Slide 17: Verimatrix protects digital content, applications, and devices
Verimatrix protects digital content, U a bg e applications, and devices with intuitive, eade c e ec .2 people-centered and frictionless security. 25+ 325+ employees across 12 global offices years of security innovation Pioneer of studio-compliant video software security 1,000+ customers in 120 count
Slide 18: Market Focus
Market Focus MEDIA & VIDEO SERVICE GAMING ENTERTAINMENT PROVIDER & ESPORTS HEALTHCARE MOBILE APP INTERNET SECURITY AUTOMOTIVE FINANCIAL OF THINGS Copyright © 2021 Verimatrix. All Rights Reserved. 18 Copyright © 2021 Verimatrix - All Rights Reserved
Slide 19: Portfolio: Content Protection
Portfolio: Content Protection Protect and maximize the value of your content everywhere Protect your valuable content to increase revenue. VCAS Multi-DRM Embedded DRM Get to market faster. Design your ideal solution. Scale easily to new users and services. Content TV Everywhere Watermarking
Slide 20: Portfolio: Application Shielding
Portfolio: Application Shielding Secure your software and transactions across devices Shield your business from loss and exposure. Integrate with your current Code Protection Whitebox development practices. Provide a compelling customer experience. Deploy intelligent and adaptive protection.
Slide 21: Our Digital World is Expanding Rapidly
Our Digital World is Expanding Rapidly More video, more apps, accessed on more connected devices $73B 7M+ 3X GLOBAL OTT MARKET APPS ON CONNECTED DEVICES BY 2023* GOOGLE PLAY & THAN PEOPLE BY 2023 APPLE APP STORE Copyright © 2021 Verimatrix Verimatrix. -All AllRights RightsReserved. Reserved 21
Slide 22: Digital Experiences Have No Boundaries
Digital Experiences Have No Boundaries All of those digital experiences are at risk security matters more than ever $12.5B 75% 94% EXPERTS PREDICT ELEVATED LOST REVENUE FROM OF APPS VIDEO PIRACY BY 2024* SECURITY THREATS ON ARE UNPROTECTED 5G NETWORKS* Copyright © 2021 Verimatrix Verimatrix. -All Al
Slide 23: Basis of preparation
Basis of preparation I de Sec e ( e a ed Ve a f g ae de e J e 24, 2019) c e ed e ac f Ve a , I c, on February 28, 2019. Ve a ( e C a ) a e a ed e acc da ce IFRS c acc ed f 10 f ac f Verimatrix, Inc. in 2019, compared to 12 months in 2020. To enable better comparison with 2020, the Company has also p
Slide 24: Supplementary non-IFRS financial information
Supplementary non-IFRS financial information Certain financial measures and performance indicators are presented on an adjusted basis. These indicators are not defined under IFRS; they should be considered to be supplementary information, not substitutable for any other indicators of operating and f
Slide 25: Investor information
Investor information Investor relations Richard Vacher Detournière GM & CFO finance@verimatrix.com Media Contact Matthew Zintel communication@verimatrix.com Financial Calendar Q1 2021 Revenue: April 28, 2021 (after market) Visit: https://investors.verimatrix.com/