Slide 1: Inside Secure First Half 2017 Results
Inside Secure First Half 2017 Results Amedeo D’Angelo, President & CEO Richard Vacher Detournière, GM & CFO July 27, 2017 www.insidesecure.com 1 |
Slide 2: Disclaimer
Disclaimer This presentation and the information it contains are not intended to constitute, and should not be construed as an offer to sell or a solicitation to buy or subscribe to any Ins ide Secur e securities, in any jur isdiction. Any public offer ing of Ins ide Sec ure securities would be made
Slide 3: Agenda
Agenda Key Highlights Half Year Financial Overview 2017 Outlook Q&A Appendix 3 |
Slide 4: Agenda
Agenda Key Highlights Half Year Financial Overview 2017 Outlook Q&A Appendix 4 |
Slide 5: Introduction to Inside Secure: A successful transformation
Introduction to Inside Secure: A successful transformation 2016: a pivotal year 2017: geared for growth ü • Refocused on core security software and Pure-play Completed technology licensing software and strategic technology transformation • Successful sale of loss-making semiconductor licensing busin
Slide 6: H1 2017 Key Highlights
H1 2017 Key Highlights • $14.7 million: revenue in first-half 2017 vs. $13.9 million in first-half 2016 excluding NFC patent license revenue • +39%: new license revenue from security software and silicon IP in first-half 2017 vs. first-half 2016 • $0.8 million in EBITDA for core software and silicon
Slide 7: Agenda
Agenda Key Highlights Half Year Financial Overview 2017 Outlook Q&A Appendix 7 |
Slide 8: Half Year 2017 Revenue
Half Year 2017 Revenue H1 2017 H1 2016 Y-o-Y % in thousands of US$ Licenses 4,215 3,034 39% Royalties 7,578 8,094 -6% Maintenance, development agreements and 2,905 2,704 7% other Total Revenue from software and IP 14,699 13,830 6% Unallocated (*) - 13,868 Total Revenue 14,699 27,698 -47% (*) unalloc
Slide 9: Income Statement – confirmed profitability
Income Statement – confirmed profitability (Adjusted* measures – 2016: continuing* operations) 6 months 2017 6 months 2016 consolidated consolidated in thousands of US$ Revenue 14,699 27,699 High growth due to product mix Cost of sales (adjusted) (726) (4,648) Adjusted Gross profit 13,973 23,051 Rig
Slide 10: H1-2017: Strong increase in cash position
H1-2017: Strong increase in cash position In US$ million 50 $43.9 m 45 40 Net profit excluding non cash items and 35 restructuring payments Sale of listed (+0.7) WISeKey shares 30 $27.1 m (+4.4) 25 Convertible Change in bonds (*) working capital (+16.4) 20 Restructuring Capital (- 2.3) payments expe
Slide 11: Strong Balance-Sheet
Strong Balance-Sheet (as at June 30, 2017, in $’000) December 31 June 30 in thousands of US$ 2016 2017 Goodwill and intangible assets 25,307 23,993 Property, plant & equipment 1,523 1,480 Other receivables 5,361 1,218 Total non current assets 32,191 26,691 Conversion of 40% of the WISeKey bonds and
Slide 12: Agenda
Agenda Key Highlights Half Year Financial Overview 2017 Outlook Q&A Appendix 12 |
Slide 13: 2017 Outlook
2017 Outlook H1 2017: Inside Secure achieved profitability1… ü Thanks to growth in the core security software and technology licensing business, ü As a consequence of refocusing the activity, and ü Rightsizing of operating cost base H2 2017: objectives confirmed • Company expects to benefit from str
Slide 14: Inside Secure strategy: geared for growth and sustainable profitability
Inside Secure strategy: geared for growth and sustainable profitability Consolidate Inside Secure Enlarge security solutions Increasing share of wallet existing positions offer of existing customers 2 Pursue sustainable growth on content 1 protection software 5 Target potential Application protectio
Slide 15: Agenda
Agenda Key Highlights Half Year Financial Overview 2017 Outlook Q&A Appendix 15 |
Slide 16: Agenda
Agenda Key Highlights Half Year Financial Overview 2017 Outlook Q&A Appendix 16 |
Slide 17: Definitions
Continuing and Discontinued Operations Definitions • Following Inside Secure’s announcement on May 19, 2016 of the sale of its semiconductor business to WISeKey and in accordance with IFRS 5, Inside Secure semiconductor activity qualified since then as a discontinued operation. Consequently, for the
Slide 18: Reconciliation from Adjusted to IFRS
Reconciliation from Adjusted to IFRS Business Sharebased Other non- 2017 Adjusted 2017 IFRS combination payments recurring costs in thousands of US$ Revenue 14,699 - - - 14,699 Cost of sales (726) (781) - - (1,507) Gross margin 13,973 (781) - - 13,192 in % of revenue 95.1% 89.7% R&D expenses (5,594)
Slide 19: Q2 2017 Revenue
Q2 2017 Revenue Q2-2017 Q2-2017 Q2-2017 Q2-2016 Q1-2017 in thousands of US$ vs. Q2-2016 vs. Q1-2017 Licenses 2,040 1,708 2,175 19% -6% Royalties 4,164 4,690 3,415 -11% 22% Maintenance, development agreements 1,551 1,296 1,354 20% 15% and other Total Revenue from software and IP 7,754 7,694 6,944 1%
Slide 20: Investor information
Investor information Contacts Inside Secure Inside Secure Corporate communications Investor relations Loic Hamon Richard Vacher Detournière EVP Corporate development & GM & CFO Communication communication@insidesecure.com contactinvestisseurs@insidesecure.com Financial calendar www.insidesecure.com