Slide 1: 2013 Earnings Presentation
driving INSIDE Secure trust 2013 Earnings Presentation Remy de Tonnac, CEO Richard Vacher Detournière, GM & CFO February 21, 2014 1 Fiscal Year 2013 Earnings Presentation, February 21, 2014
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 contains certain statements that are neither reported financial results nor other historical information and othe
Slide 3: Agenda
Agenda .H\+LJKOLJKWV 45HYHQXHDQG)XOO<HDU)LQDQFLDO2YHUYLHZ 2XWORRN 4 $ $SSHQGL[ 3 Fiscal Year 2013 Earnings Presentation, February 21, 2014
Slide 4: Key Highlights
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Slide 5: 2013 Key Highlights
2013 Key Highlights • 2013, a year of transformation, with the integration of ESS and the reorganization around two business divisions: Mobile Security and Secure Transactions • FY consolidated revenue of $154.6 M, up 27% (+5% on a normalized basis*) • Strong growth in the adjusted gross margin* fro
Slide 6: Q4 Revenue and Full Year Financial Overview
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Slide 7: Revenue Q4-2013
Revenue Q4-2013 % Y-o-Y Q4-2013 Q4-2012 % Y-o-Y in thousands of US$ normalized Mobile Security 19 668 12 180 61% 11% Secure Transactions 19 748 19 084 3% 3% Total Revenue 39 416 31 264 26% 7% Q4-2012 split Q4-2013 split Mobile Mobile Security Security 39% 50% 31.3 m$ 39.4 m$ Secure Secure Transactio
Slide 8: FY 2013 Revenue
FY 2013 Revenue 12 months 12 months % Y-o-Y % Y-o-Y in thousands of US$ 2013 2012 normalized Mobile Security 73 797 43 828 68% 7% (incl. ESS product line) 26 581 840 3064% 2% Secure Transactions 80 827 78 219 3% 3% Total Revenue 154 623 122 047 27% 5% Revenue split by nature (in m$) Revenue split by
Slide 9: Adjusted Income Statement 2013
Adjusted Income Statement 2013 Revenue growth and product mix drive gross profit 12 months 12 months • ESS integration generates $25m in adjusted gross profit in thousands of US$ 2013 2012 • Effort to improve gross profit in all segments. Revenue 154 623 122 047 • Sizeable savings through restructur
Slide 10: Adjusted Income Statement H2-2013
Adjusted Income Statement H2-2013 H2-2013 H1-2013 H2-2012 in thousands of US$ consolidated consolidated consolidated Revenue 83 858 70 765 59 847 Cost of sales (50 449) (43 915) (44 024) Adjusted gross profit 33 410 26 850 15 823 in % of revenue 39,8% 37,9% 26,4% R&D expenses (13 796) (18 108) (14 9
Slide 11: Mobile Security
Mobile Security 11 Fiscal Year 2013 Earnings Presentation, February 21, 2014
Slide 12: Mobile Security
Mobile Security Revenue (in $m) Adjusted operating income (in $m) 73 797 +68% 43 828 (6 676) (9%) (30 920) 2012 2013 47 324 (71%) (+123%) 2012 2013 21 222 x % Adjusted operating income in % of revenue H2-2012 H2-2013 • Strong revenue growth mainly driven by integration of ESS product line. • Signifi
Slide 13: Secure Transactions
Secure Transactions 13 Fiscal Year 2013 Earnings Presentation, February 21, 2014
Slide 14: Secure Transactions
Secure Transactions Revenue (in $m) Adjusted operating income (in $m) +3% 78 219 80 827 7% 7% 4% 5 895 3 062 2012 2013 2012 2013 38 625 36 534 (5%) x % Adjusted operating income in % of revenue H2-2012 H2-2013 • H2 revenue decrease of -5% explained by further slow-down of legacy payment products and
Slide 15: FY 2013 - Tight Management of Cash Flow
FY 2013 - Tight Management of Cash Flow In millions of US$ Net income excluding non- Restructuring cash items * cash outlays Change in working 66.3 6.9 capital (7.4) (10.0) Capital expenditures ESS (9.9) earn-out Other (5.2) (0.5) 40.2 Change in working capital: (inventories, trade accounts receivab
Slide 16: H2-2013 – Preserved Cash Position
H2-2013 – Preserved Cash Position In millions of US$ Net income 5.9 excluding non- Restructuring cash items * cash outlays Change in working Capital (5.2) capital expenditures 10.6 (0.6) 41.9 Other (6.5) 0.1 40.2 Change in working capital: (inventories, trade accounts receivable including factoring
Slide 17: Strong Balance Sheet
Strong Balance Sheet As of December 31, 2013 Assets Equity & liabilities Goodwill 27 390 Acquired assets (SMS, ESS), net 7 839 Other PP&E PP&E and intangible assets 6 262 Other intangible assets Equity 15 509 Inventories Other non-current assets 19 527 Trade receivables Working capital 10 955 Resear
Slide 18: Outlook
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Slide 19: Strategic Update and 2014 Outlook
Strategic Update and 2014 Outlook • Strong growth potential for Mobile Security, across many applications in entertainment content delivery, enterprise, mobile payment, driven by high-profile cybersecurity breaches • Mobile Security division however expected to decline sequentially in Q1 (no sale of
Slide 20: Q&A
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Slide 21: Appendix
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Slide 22: Definitions
Definitions • Adjusted measures Certain financial measures and performance indicators are presented on an adjusted basis. These indicators should be considered to be supplementary information, not substitutable for any other indicators of operating and financial performance that are strictly accou
Slide 23: P&L reconciliation from IFRS to Adjusted 2013
P&L reconciliation from IFRS to Adjusted 2013 2013 Business Share based Other non- 2013 in thousands of US$ IFRS combinations payments recurring costs Adjusted Revenue 154 623 - - - 154 623 Cost of sales (106 389) 11 953 71 - (94 364) Gross margin 48 235 11 953 71 - 60 259 in % of revenue 31,2% 39,0
Slide 24: P&L reconciliation from IFRS to Adjusted 2012
P&L reconciliation from IFRS to Adjusted 2012 2012 Business Share based Other non- 2012 in thousands of US$ IFRS combinations payments recurring costs Adjusted Revenue 122 047 122 047 Cost of sales (93 504) 2 734 163 (90 607) Gross margin 28 543 2 734 163 - 31 439 in % of revenue 23,4% 25,8% R&D exp
Slide 25: Security for Business Innovation
Security for Business Innovation An Innovator with unique A world leader securing security assets, essential millions of devices IP portfolio (>650 and identities from patents) and strong R&D the chip to the cloud focus $154.6M revenue in 2013 Global organization of CAGR 25.5% 2010-2013 circa 370 em
Slide 26: Executive Leadership Team
Executive Leadership Team CEO Remy de Tonnac GM & CFO COO GM & Corp. Secretary Richard Pierre Vacher Garnier Pascal Didier Detournière EVP Mobile EVP Secure EVP R&D CSO EVP Operations Security Transactions Dimitrios Simon Blake - Simon Blake- Bernard Vian Damien Laroche Karayiannis Wilson Wilson 26
Slide 27: Global Presence
Global Presence Helsinki East Kilbride Amsterdam Toronto Seattle Tokyo San Francisco Boston Aix-en-Provence Seoul Taiwan Bangkok Singapore Headquarters (Product, R&D, Sales) Sales & Service Offices 372 employees worldwide R&D Facilities Fab and Operations (Contract) 27 Fiscal Year 2013 Earnings Pres
Slide 28: Investor Information
Investor Information Contacts ,16,'(6HFXUH %UXQVZLFN ,16,'(6HFXUH &RUSRUDWHFRPPXQLFDWLRQ )LQDQFLDOFRPPXQLFDWLRQ ,QYHVWRU UHODWLRQV *«UDOGLQH6DXQLªUH -«U¶PH %LVFD\0DWKLOGH %LVFD\0DWKLOGH 5RGL« 5LFKDUG9DFKHU'HWRXUQLªUH 5LFKDUG9DFKHU'HWRXUQLªUH 0DUFRP 'LUHFWRU 'LUHFWHXUJ«Q«UDOILQDQFHV ,16,'(#EUXQVZLFNJ
Slide 29: Fiscal Year 2013 Earnings Presentation, February 21, 2014
29 Fiscal Year 2013 Earnings Presentation, February 21, 2014