Slide 1: Half-year 2018 financial results
Inside Secure Half-year 2018 financial results Amedeo D’Angelo, Chairman & CEO Richard Vacher Detournière, GM & CFO July 26, 2018 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 Inside Secure securities, in any jurisdiction. Any public offering of Inside Secure securities would be made by me
Slide 3: First-half 2018 results: strong profitable growth
First-half 2018 results: strong profitable growth • +67%: year-on-year consolidated revenue growth in Q2 2018 to $12.4 million • +57%: year-on-year consolidated revenue growth in H1 2018 to $22.5 million • 14%: EBITDA margin in H1 2018 ($3.2 million) vs. 4% in H1 2017 • Strong cash position to $49.1
Slide 4: First-half 2018: leveraged our assets
First-half 2018: leveraged our assets Our core Our Our NFC security customers Patent solutions Portfolio +44%: core business New significant agreements with existing customers $1.8M revenue revenue growth +57%: consolidated H1’18 revenue to $22.5M 4 | Inside Secure - July 2018
Slide 5: Executing our strategic roadmap: Increasing footprint of embedded security
Executing our strategic roadmap: Increasing footprint of embedded security NationalChip choses Inside Secure’s secure INCREASE FOOTPRINT MANAGE OPERATE SECURITY NEW SECURITY OF CORE PROPRIETARY provisioning solution to build robust security into TECHNOLOGIES SOLUTIONS SERVICES its system-on-chips du
Slide 6: First-half 2018 in a nutshell
First-half 2018 in a nutshell • Executed our strategy • Leveraged our assets: core security solutions, customers, NFC • Leveraged our resources to pursue investments in R&D, notably on developing bundled solutions • Growing traction in IoT and automotive markets • Keeping on building a strong balanc
Slide 7: Signed significant contracts with world top companies
Signed significant contracts with world top companies while enabling new customers to manage new security challenges Security at the heart of chips Security of communication Security of application Security of content Major Semiconductor Companies Top IT Companies Banks and payment systems Content d
Slide 8: Inside Secure First-half 2018 financials
Inside Secure First-half 2018 financials Richard Vacher Detourniere, GM & CFO July 26, 2018 www.insidesecure.com 8 |
Slide 9: Basis of presentation of H1 2018 financials
Basis of presentation of H1 2018 financials The revenue and results for 2017 and first half 2018 have been prepared in accordance with IFRS 15 "Revenue from Contracts with Customers", which was mandatory from January 1, 2018. The Company had chosen to anticipate the implementation of the standard, i
Slide 10: Software-based activity driving strong operating leverage
Software-based activity driving strong operating leverage Revenue on core business and EBITDA (in $M) +44% 20.7 13.8 14.4 0.6 X3.2 1.9 H1 2016 H1 2017 H1 2018 -4.7 Revenue EBITDA 10 | Inside Secure - July 2018
Slide 11: First-half 2018: Significant growth in licenses
First-half 2018: Significant growth in licenses HALF-YEAR LICENSE REVENUE RUN x2 RATE OVER 2.5 YEARS (IN M$) x2 6.6 • Reaping the benefit of investing in sales * 4.8 4.9 development 3.6 3.8 • Addressing new security challenges to up-sell customers • Leveraging strong market dynamics, notably in in I
Slide 12: H1 2018 Core business revenue growing by +44% vs. H1 2017
H1 2018 Core business revenue growing by +44% vs. H1 2017 20.7 44% +59%: year-on-year revenue growth 14.4 11.4 7.2 8.1 4.9 6.6 +36%: year-on-year revenue growth 3.6 2.1 2.3 2.7 Growth in maintenance and other revenues in line with H1 2016 H1 2017 H1 2018 overall activity growth Ma intenance & Others
Slide 13: Demonstrated software business model driving strong operating leverage
Demonstrated software business model driving strong operating leverage in million $ H1 2018 H1 2017 Core business revenue 20.7 14.4 Gross profit 20.0 14.0 as % of revenue 97% 97% Operating expenses (18.2) (13.7) as % of revenue 88% 95% Operating income 1.7 0.3 as % of revenue 8.2% 2.1% EBITDA of cor
Slide 14: Core business operating income and EBITDA
Core business operating income and EBITDA in million $ H1 2018 H1 2017 Revenue 20.7 14.4 Gross profit 20.0 14.0 Research and development expenses (7.8) (5.6) Selling and marketing expenses (6.7) (6.1) General and administrative expenses (3.8) (2.9) Other gains / (losses), net - 0.9 Operating income
Slide 15: Restarted investments in H2 2017 to support future growth
Restarted investments in H2 2017 to support future growth EVOLUTION OF COMPANY OPERATING EXPENSES (in $M) 19.9 16.0 16.8 14.8 15.7 Reengaging with investments to 9.0 6.5 seed future growth 7.1 6.1 8.1 6.2 7.0 6.1 6.4 G&A and other 5.3 Income/expense cost base 3.2 4.1 3.9 2.8 1.4 consistent with comp
Slide 16: From Adjusted operating income to IFRS Net Income
From Adjusted operating income (+$2.7M) to IFRS Net Income (+$1.8M) in million $ H1 2018 H1 2017 Var Adjusted operating income Core business 1.7 0.3 1.4 Adjusted operating income NFC 1.0 (0.2) 1.2 Adjusted operating income 2.7 0.1 2.6 - Adjustments to IFRS (1.9) (3.5) 1.6 Consolidated IFRS operating
Slide 17: H1 2018: strong cash generation reflecting operating performance
H1 2018: strong cash generation reflecting operating performance in million $ H1 2018 H1 2017 Cash generated by / (used in) operations before changes in working capital 2.1 (1.8) Cash generated by / (used in) changes in working capital 1.9 (2.0) Interest received, net and Income tax (0.4) (0.2) Net
Slide 18: Inside Secure Looking ahead
Inside Secure Looking ahead Amedeo D’Angelo, Chairman & CEO July 26, 2018 www.insidesecure.com 18 |
Slide 19: 2018 objectives confirmed thanks to a particularly strong H1 performance
2018 objectives confirmed thanks to a particularly strong H1 performance • Robust top line growth • More than off setting the anticipated decline of a U.S. customer which generated exceptionally high level of revenue from royalties in H2 2017 • Supporting investments to capture strong market dynamic
Slide 20: Appendix
Appendix July 2018 www.insidesecure.com 20 |
Slide 21: 2018: Remain focus on executing our strategy
2018: Remain focus on executing our strategy MANAGE OPERATE INCREASE FOOTPRINT SECURITY NEW SECURITY OF CORE PROPRIETARY SOLUTIONS SERVICES TECHNOLOGIES COMBINING ORGANIC INITIATIVES AND BOLT ON ACQUISITIONS 21 | Inside Secure - July 2018
Slide 22: Inside Secure: Investment Case
Inside Secure: Investment Case A PURE PLAYER IN SECURITY SOLID ADVANTAGES SUCCESSFULLY TRANSFORMED COMPANY TOWARDS PURE SOTFWARE PLAYER • A pure player in software and • Addressing security needs of billions • 2016: first year of profitable growth, ever core technologies to secure of connected devic
Slide 23: H1 2018 financials - Basis of preparation
H1 2018 financials - Basis of preparation Supplementary non-IFRS financial information (Adjusted measures) l 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 informatio
Slide 24: Reconciliation from Adjusted to IFRS
Reconciliation from Adjusted to IFRS in million $ H1 2018 H1 2017 EBITDA 3.2 0.6 Amortization and depreciation of assets (*) 0.5 0.5 Adjusted operating income/(loss) 2.7 0.1 Business combinations (**) (1.2) (1.1) Other non recurring costs (0.5) (1.7) Share based payments (0.3) (0.6) Operating income
Slide 25: Sound balance sheet with disciplined cash management to execute the strategy
Sound balance sheet with disciplined cash management to execute the strategy June 30 December 31 in million $ 2018 2017 Goodwill and intangible assets 36.5 38.0 Includes the consolidation of Property, plant & equipment 1.3 1.3 Meontrust and SypherMedia Other receivables 1.0 1.7 Total non current ass
Slide 26: Investor information
Investor information Contacts Inside Secure Inside Secure Corporate communications Investor relations Brigitte Foll Richard Vacher Detournière Marcom Director GM & CFO communication@insidesecure.com contactinvestisseurs@insidesecure.com Financial calendar www.insidesecure.com Q3 2018 revenue: Octobe