Slide 1: INSIDE Secure First Half 2015 Earnings Presentation
INSIDE Secure First Half 2015 Earnings Presentation Remy de Tonnac, CEO Richard Vacher Detournière, GM & CFO July 31, 2015
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 may contains certain statements that are neither reported financial results nor other historical information and
Slide 3: Agenda
AGENDA H1 2015 Key Highlights Q2 Revenue and Half Year Financial Overview Outlook for 2015 Q&A Appendix 3 |
Slide 4: Agenda
AGENDA H1 2015 Key Highlights Q2 Revenue and Half Year Financial Overview Outlook for 2015 Q&A Appendix 4 |
Slide 5: H1 2015 Key Highlights
H1 2015 KEY HIGHLIGHTS • Consolidated revenue of $35.0 million in H1 2015, with Q2 revenue reaching $18.6 million, up 14% compared with low point of the previous quarter • Adjusted* gross profit of $16.4 million (47.0% of revenue) in H1 2015 • Adjusted operating loss of $10.8 million in H1 2015 (vs
Slide 6: Q2 Revenue and Half Year Financial Overview
H1 2015 Key Highlights Q2 Revenue and Half Year Financial Overview Outlook for 2015 Q&A Appendix 6 |
Slide 7: Q2 2015 Revenue
Q2 2015 REVENUE Q2-2015 Q2-2014 Q1-2015 % Change % Change in thousands of US$ consolidated consolidated consolidated annual sequential Mobile Security 6 138 25 677 5 014 -76% 22% Secure Transactions 12 499 13 658 10 665 -8% 17% Unallocated - 1 513 650 - -100% Total Revenue 18 637 40 848 16 329 -54%
Slide 8: H1 2015 Revenue
H1 2015 REVENUE H1-2015 H1-2014 % Change in thousands of US$ consolidated consolidated annual 32 50% Revenue from licences, royalties, development Mobile Security 11 152 32 750 -66% and maintenance Revenue from sale of Secure Transactions 23 163 29 984 -23% 23 products (Chip based) 67% 32 Unallocate
Slide 9: Adjusted Income Statement
ADJUSTED* INCOME STATEMENT H1-2015 H1-2014 in thousands of US$ consolidated consolidated Revenue 34 966 64 247 Cost of sales (adjusted) (18 546) (26 425) Adjusted Gross profit 16 420 37 822 Change essentially explained by in % of revenue 47,0% 58,9% Intel licenses deal in 2014 (10 pts) R&D expenses
Slide 10: Mobile Security – H1 2015
MOBILE SECURITY – H1 2015 Revenue (in $m) Adjusted operating income (in $m) X% = Adjusted operating income as a % of revenue 14 320 (66%) 21% 6 749 18 430 10 676 (5 493) Intel 476 2014 2015 (49%) 2014 2015 • 2014 Intel license agreement explaining most of the change in revenue Y-o-Y • Very encouragi
Slide 11: Secure Transactions – H1 2015
SECURE TRANSACTIONS – H1 2015 Revenue (in $m) Adjusted operating income (in $m) X% = Adjusted operating income as a % of revenue (23%) 29 984 (4 525) 23 163 (5 504) (20%) (18%) 2014 2015 2014 2015 • EMV sales in the US Market below • H1 2015 design-wins in Brand Protection and IoT to fuel future rev
Slide 12: H1 2015 Cash Flow
H1 2015 CASH FLOW In millions of US$ 40 Net income and 36.3 non-cash items 35 (6.9) Change in working capital 30 (4.9) Capital Equity line Other financing expenditures financing operations 25 Other 23.8 (0.8) +0.9 (0.6) (0.3) 20 Mainly due to increase in inventories ($4.1 million) 15 10 Cash reducti
Slide 13: Solid Balance Sheet
SOLID BALANCE SHEET Assets In millions of US$ Equity & liabilities As of June 30, 2015 24 080 Goodwill 26 241 71 769 Equity PP&E and intangible assets Other non-current assets 1 625 Working capital 11 144 Net cash * 22 478 13 799 Other liabilities - 85 568 85 568 * Definition in Appendix 13 |
Slide 14: Outlook for 2015
H1 2015 Key Highlights Q2 Revenue and Half Year Financial Overview Outlook for 2015 Q&A Appendix 14 |
Slide 15: Outlook 2015 - Confirm Positive Impact of Strategic Repositioning
OUTLOOK 2015 - CONFIRM POSITIVE IMPACT OF STRATEGIC REPOSITIONING As announced in the first quarter, INSIDE Secure expects an increase in sales relating to its embedded security offering for mobile platforms and connected devices in the second half of the year, although visibility regarding sequen
Slide 16: Q&A
H1 2015 Key Highlights Q2 Revenue and Half Year Financial Overview Outlook for 2015 Q&A Appendix 16 |
Slide 17: Appendix
H1 2015 Key Highlights Q2 Revenue and Half Year Financial Overview Outlook for 2015 Q&A Appendix 17 |
Slide 18: Definitions
DEFINITIONS 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 indicators of operating and financial perf
Slide 19: Reconciliation from Adjusted to IFRS H1 2015
RECONCILIATION FROM ADJUSTED TO IFRS H1 2015 H1-2015 Business Share-based Other non- H1-2015 in thousands of US$ Adjusted combinations payment recurring costs IFRS Revenue 34 966 - - - 34 966 Cost of sales (18 546) (4 881) (3) - (23 430) Gross margin 16 420 (4 881) (3) - 11 535 in % of revenue 47,0%
Slide 20: Reconciliation from Adjusted to IFRS H1 2014
RECONCILIATION FROM ADJUSTED TO IFRS H1 2014 H1-2014 Business Share-based Other non- H1-2014 in thousands of US$ Adjusted combinations payment recurring costs IFRS Revenue 64 247 - - - 64 247 Cost of sales (26 425) (5 924) (38) - (32 386) Gross margin 37 822 (5 924) (38) - 31 860 in % of revenue 58,
Slide 21: Investor Information
INVESTOR INFORMATION CONTACTS INSIDE Secure Brunswick INSIDE Secure Corporate Financial communications Investor relations communication Géraldine Saunière Richard Vacher Detournière Jérôme Biscay, Candice Baudet Depierre Marcom Director GM & CFO +33 (0) 1 53 96 83 83 +33 (0) 4 42 39 33 01 contactinv