Slide 1: 2019 Financial Results
2019 Financial Results March 4, 2020 Amedeo D’Angelo, Chairman & CEO Richard Vacher Detournière, GM & CFO Copyright © 2020 Verimatrix. All Rights Reserved. Confidential. 1
Slide 2: Disclaimer
Disclaimer This document was prepared by Verimatrix and is provided for information purposes only. It is public information only. This presentation includes statements that are, or may be deemed to be, “forward looking statements” and may include projections and estimates and their underlying assump
Slide 3: Basis of preparation
Basis of preparation Inside Secure (renamed Verimatrix (the “Company”) following shareholders’ vote on June 24, 2019) completed the acquisition of Verimatrix, Inc, on February 28, 2019. On December 6, 2019, the Company completed the sale of its Silicon IP business unit to Rambus Inc. (NASDAQ: RMBS)
Slide 4: 2019: Delivered strong operational & financial performance
2019: Delivered strong operational & financial performance Fourth quarter 2019 o $32.7 million revenue o Up 19% year-over-year on a pro forma1 adjusted1 basis Full year 2019 o $106.8 million pro forma adjusted revenue, up 9% year-over-year o $22.6 million pro forma EBITDA1 (21.2% of revenue), up 51%
Slide 5: 2019: Completion of all objectives and strategic initiatives
2019: Completion of all objectives and strategic initiatives 2020 and beyond Integrated Verimatrix, Inc. DEC. 2019 Sale of the Silicon IP Delivered cost synergies 25% business unit above plan: annual run-rate cost synergies of $12.5 million Sale of non-core Silicon IP business unit JUL. 2019 New cor
Slide 6: Financials
Financials
Slide 7: 2019 pro forma adjusted revenue: +9% year over year
2019 pro forma adjusted revenue: +9% year over year 2019 Q4 2019 Q4-2019 Q4-2018 2019 2018 vs. vs. Q4 2018 (in million of US$) 2018 Software business 32,3 27,5 18% 102,9 95,8 7% Core Business pro forma adjusted revenue 32,3 27,5 18% 102,9 95,8 7% NFC patent licensing program 0,3 - 3,9 1,8 - Pro form
Slide 8: 2019: 51% growth of pro forma EBITDA year-over-year
2019: 51% growth of pro forma EBITDA year-over-year (in million US$) 2019 2018 Revenue 106.7 97.6 Adjusted gross profit 85.7 82.1 As a % of revenue 80.3% 84.1% Research and development expenses (24.1) (28.5) Selling and marketing expenses (25.3) (27.7) General and administrative expenses (17.6) (18.
Slide 9: 2019 key milestones: new organization, streamlining and cost synergies plan fully implemented
2019 key milestones: new organization, streamlining and cost synergies plan fully implemented Thorough review of targeted cost synergies plan; New organization in place Plan fully implemented: ahead of schedule and with $10m $12.5m greater savings than anticipated $12.5 million cost savings on an an
Slide 10: 2019: IFRS net income
2019: IFRS net income (in million US$) 2019 2018 Adjusted operating income/(loss) 23,1 (3,0) Fair value adjustment on deferred revenue (*) (1,5) - Amortization and depreciation of assets acquired through business (4,8) (1,2) combinations (*) Acquisition related expenses (4,0) (0,8) Restructuring cos
Slide 11: Sale of the Silicon IP business unit to Rambus
Sale of the Silicon IP business unit to Rambus Rationale: (i) increase Verimatrix’ focus as a pure player in software-based security and business intelligence solutions, (ii) improve substantially the company’s financial flexibility thanks to a strengthened balance-sheet Sale to Rambus Inc. (NASDAQ:
Slide 12: 2019: cash flows reflecting operating performance and M&A activity
2019: cash flows reflecting operating performance and M&A activity (in million $) 2019 2018 Cash generated by / (used in) operations before changes in working 15.6 3.0 capital Cash generated by / (used in) changes in working capital (18.5) (0.2) Net cash generated by / (used in) operating activities
Slide 13: 2019: balance sheet reflecting increased scope and M&A activities
2019: balance sheet reflecting increased scope and M&A activities December 31, December 31, December 31, December 31, (in million $) (in million $) 2019 2018 2019 2018 Goodwill and intagible assets 135,5 35,4 Equity and retained earnings 154,8 70,5 Property and equipment 15,5 1,2 18,5 5,7 Borrowings
Slide 14: Business Outlook & Objectives
Business Outlook & Objectives
Slide 15: Business Outlook
Business Outlook In 2019, through strategic initiatives, Verimatrix became a pure-play software provider of innovative, customer-friendly cybersecurity solutions that protect video content, applications, and devices across multiple markets Priorities going forward: Take benefit from the momentum cre
Slide 16: Verimatrix main growth engines
Verimatrix main growth engines SaaS Modernization Content Security 5G Software Explosion Protection Modernize traditional TV Enable the video Ensuring software and code market with Verimatrix’s cloud democratization revolution by protection for the coming 5G / SaaS solution protecting content anywhe
Slide 17: Objectives
Objectives 2020 2021 High-single digit revenue growth $125 million revenue (for core business excluding NFC (for core business excluding NFC licensing program) licensing program) EBITDA margin in a range of 23% EBITDA margin of 26% of revenue to 25% of revenue Assuming constant foreign exchange rate
Slide 18: Appendix
Appendix
Slide 19: 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 20: Investor information
Investor information Investor relations Richard Vacher Detournière GM & CFO finance@verimatrix.com Media Contact Kelly Foster communication@verimatrix.com Financial Calendar Q1 2020 Revenue: April 21, 2020