Verimatrix Sa · EURONEXT:VMX
Verimatrix Sa — H1 2019 Earnings Presentation
19 slides from Verimatrix Sa's earnings presentation, Jul 29, 2019
Slide 1: Half Year 2019 Financial Results
Half Year 2019 Financial Results Amedeo D’Angelo, Chairman & CEO Richard Vacher Detournière, GM & CFO Copyright © 2019 Verimatrix, Inc. All Rights Reserved. Confidential. 1
Slide 2: Disclaimer
Disclaimer This presentation and the information it contains are not, and will not constitute or form part of an offer of securities or a solicitation for the purchase, subscription or sale of securities of Verimatrix in the United States of America or any other jurisdiction where restrictions may a
Slide 3: Strong H1 2019 Results
Strong H1 2019 Results $60.8 million: pro forma1 adjusted1 revenue in H1 2019 $10.0 million: pro forma EBITDA1 in H1 2019 (16.5% of revenue) up 68% vs H1 2018 New organization, streamlining and cost synergies plan fully implemented Cost synergies expected to be $12.5 million on an annual basis, 25%
Slide 4: An intense first half of the year
An intense first half of the year Building a major player in software-based security solutions July 2019 New corporate name April 2019 New organization Feb. 28, 2019 in place Completion of the acquisition Copyright © 2019 Verimatrix, Inc. All Rights Reserved. Confidential. 4
Slide 5: Verimatrix: Spanning multiple industries shifting towards software and cloud-based security solutions
Verimatrix: Spanning multiple industries shifting towards software and cloud-based security solutions Entertainment Entertainment Internet of Things Financial Data Verimatrix OTT & Connected Cars Institutions Center Data Analytics Silicon IP serving the Silicon IP Secure Protocols expanded Entertain
Slide 6: New organization, streamlining and cost synergies plan fully implemented
At the same time, new organization, streamlining and cost synergies plan fully implemented Thorough review of targeted cost synergies plan; New organization in place $10m $12.5m Plan fully implemented: ahead of schedule and with greater savings than anticipated Estimated cost Updated cost synergies
Slide 7: A broader vision, best value proposition
A new corporate name to build a major player in software-based security solutions A broader Best value proposition vision for our customers To secure and enable the We enable success through trusted connected future business insights and friendly security Copyright © 2019 Verimatrix, Inc. All Rights
Slide 8: First half 2019 financials
First half 2019 financials
Slide 9: Basis of preparation
Basis of preparation Inside Secure (renamed Verimatrix following shareholders vote on June 24, 2019) completed the acquisition of Verimatrix, Inc, on February 28, 2019. Verimatrix (the “Company”) has prepared its results in accordance with IFRS (which account for 4 months of activity of Verimatrix,
Slide 10: H1 2019 pro forma adjusted revenue: +4% vs. H1 2018
H1 2019 pro forma adjusted revenue: +4% vs. H1 2018 $60.8m $58.5m 3,5 1,8 Strong business momentum off set by unfavorable 10,4 basis of comparison 12,4 (absence of royalties from the company’s historical U.S. customer vs. $1.5 million in H1 2018) Successfully offset unusually low performance of Veri
Slide 11: H1 2019: 68% growth of pro forma EBITDA year-over-year
H1 2019: 68% growth of pro forma EBITDA year-over-year in million $ H1 2019 H1 2018 Revenue 60,8 58,5 Adjusted gross profit 49,4 48,4 as % of revenue 81,3% 82,7% Research and development expenses (16,8) (19,0) Selling and marketing expenses (15,3) (17,1) General and administrative expenses (11,1) (9
Slide 12: H1 2019: IFRS net income impacted by one-off expenses and non-cash charges
H1 2019: IFRS net income impacted by one-off expenses and non-cash charges in million $ H1 2019 H1 2018 EBITDA 14,0 3,2 Amortization and depreciation of assets (*) 2,9 0,5 Adjusted operating income/(loss) 11,1 2,7 Amortization and depreciation of assets acquired through business combinations (*) (2,
Slide 13: H1 2019: cash generation reflecting operating performance
H1 2019: cash generation reflecting operating performance in million $ H1 2019 H1 2018 Cash generated by / (used in) operations before changes in working capital 6,4 2,1 Cash generated by / (used in) changes in working capital (15,7) 1,9 Interest received, net and Income tax (2,6) (0,4) Net cash gen
Slide 14: H1 2019: balance sheet reflecting increased scope and acquisition financing
H1 2019: balance sheet reflecting increased scope and acquisition financing June 30 December 31 in million $ 2019 2018 Goodwill and intangible assets 150,7 35,4 Property, plant & equipment 7,8 5,7 Other receivables 11,6 1,2 Total non current assets 170,1 42,3 Trade receivables 39,9 10,5 December 31,
Slide 15: Looking ahead
Looking ahead
Slide 16: Upgrading business profitability outlook
Upgrading business profitability outlook 2019 2021 objectives Strong focus on integrating Verimatrix $150m revenue (unchanged) Delivering higher cost synergies ($7m in 2019 and $12.5m on an annual basis) EBITDA margin of 26.5% upgraded Higher EBITDA* due to Verimatrix (25% previously) incremental ea
Slide 17: Appendix
Appendix
Slide 18: Supplementary non-IFRS financial information (adjusted measures)
Supplementary non-IFRS financial information (adjusted measures) 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 indicator
Slide 19: Investor information
Investor information Investor relations Richard Vacher Detournière GM & CFO finance@verimatrix.com Media Contact Kelly Foster communication@verimatrix.com Financial calendar Q3 2019 revenue: October 15, 2019