Slide 1: Q3 2013 Revenue and Strategy Update
driving INSIDE Secure trust Q3 2013 Revenue Strategy update October 24, 2013 1 Q3 2013 REVENUE AND STRATEGY UPDATE
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 Key highlights Q3 Revenue Strategy update Q&A 3 Q3 2013 REVENUE AND STRATEGY UPDATE
Slide 4: Key Highlights
Key Highlights • 9 months revenue at $115.2M up 27%Y-on-Y • Q3 2013 up 55% Y-on-Y, due to deliveries to BlackBerry, which should reduce significantly during the next quarters • Completion of a worldwide reorganization plan targeting $13M savings on a yearly basis (full savings starting in Q4 2013) •
Slide 5: Q3 Revenue
Key highlights Q3 Revenue Strategy update Q&A 5 Q3 2013 REVENUE AND STRATEGY UPDATE
Slide 6: Revenue Q3 2013
Revenue Q3 2013 % Y-o-Y Q3-2013 Q3-2012 % Y-o-Y (in thousands of US$) nomalized Mobile NFC 21 041 9 043 133% 133% Secure Payment 5 118 8 157 -37% -37% Digital Security 11 303 11 383 -1% -1% Embedded Security Solutions 6 980 - 12% Total Revenue 44 442 28 583 55% 27% • Mobile NFC revenue mainly driven
Slide 7: Revenue YTD September 2013
Revenue YTD September 2013 9 months 9 months % Y-o-Y % Y-o-Y (in thousands of US$) 2013 2012 nomalized Mobile NFC 35 077 31 649 11% 11% Secure Payment 22 874 23 023 -1% -1% Digital Security 37 468 36 111 4% 4% Embedded Security Solutions 19 787 - - 1% Total Revenue 115 207 90 783 27% 4% YTD 2012 spl
Slide 8: Strategy update
Key highlights Q3 Revenue Strategy update Q&A 8 Q3 2013 REVENUE AND STRATEGY UPDATE
Slide 9: Trends in our markets environment
Trends in our markets environment High Security Mobile Communication M2M / IoT* Smart Cards Fraud is increasing across applications that are Secure smart cards M2M, Internet of Things, becoming mainstream on mobile devices market Wearable Computing, • e.g. m-payments, content downloads, data • Well-
Slide 10: INSIDE Secure strategic focus
INSIDE Secure strategic focus Strengthen embedded security solutions offering Increase focus on high value-added solutions for mobiles and connected devices… … across the whole security architecture chain INSIDE Secure will participate to the NFC controller market through: - NFC silicon IP licensing
Slide 11: Strategic execution plan over the last 12 months
INSIDE Secure’s strategic execution plan over the last 12 months Dec.12 Mar.13 Jul.13 Oct.13 Acquisition Launch of WW ESS integration phase 2 of ESS and reorganization Reorganization plan final Integration phase 1 plan (ESS excluded) • Increased focus on Aiming at: • Roadmap synergies embedded secur
Slide 12: Strategic execution plan over the last 12 months
INSIDE Secure’s strategic execution plan over the last 12 months Dec.12 Mar.13 Jul.13 Oct.13 Acquisition Launch of WW ESS integration phase 2 Operational of ESS and reorganization Reorganization plan final reshaping integration phase 1 plan (ESS excluded) 2 Business divisions: • Mobile Security • Se
Slide 13: Shaping the new INSIDE Secure with 2 new business divisions
Shaping the new INSIDE Secure with 2 new business divisions Embedded Security Solutions MOBILE SECURITY SECURE TRANSACTIONS . Providing a comprehensive Digital Security Providing tailored solutions suite of embedded security based on secure solutions for mobile devices microcontrollers, secure combi
Slide 14: A leader in both markets
A leader in both markets MOBILE SECURITY SECURE TRANSACTIONS 2012 TAM:300 M$ - CAGR of 25%* 2012 TAM:700 M$ - CAGR of 10%* Covers a growing market of hundreds of millions - Established market of secure smart cards, ID Markets devices driven by the BYOD trend and , payments, Pay-TV… numerous M-applic
Slide 15: Mobile Security: device security architecture
Mobile Security: device security architecture Different applications require different security implementations M Payment Secure Element NFC VPN Trusted Execution VPN Secure Environment communication Application Processor DRM Content Protection 15 Q3 2013 REVENUE AND STRATEGY UPDATE 1
Slide 16: Mobile Security: platform security chain
Mobile Security: platform security chain • CRYPTO CRYPTO-- • SECURE • TRUSTZONE • EMBEDDED • DRM CLIENT CELLS ELEMENT • SECURITY DRM • VPN CLIENT • PACKET • JAVA OS TOOLKITS • EMBEDDED • PAYMENT ENGINES • APPLETS VPN SECURE IPs for SECURITY APPLICATION PLATFORM OS COMPONENTS COMPONENTS PROCESSOR And
Slide 17: Secure transactions: Providing the complete security solution
Secure transactions: Providing the complete security solution Enabling “internet secure” ready devices like smart meters for the M2M and IoT markets Reduced time to market, with “SSL internet secure platform on a chip” secure security middleware controller 17 Q3 2013 REVENUE AND STRATEGY UPDATE
Slide 18: Secure Transactions: M2M / Secure IoT segment security chain
Secure Transactions: M2M / Secure IoT segment security chain • CRYPTO CRYPTO-- SECURE • JAVA OS • MANUFAC • POINT TO CELLS MICRO • SECURITY TURING POINT • PACKET CONTROLLER TOOLKITS • PERSONA SECURITY ENGINES LISATION SECURE IPs for SECURITY SECURE SECURITY APPLICATION SYSTEM COMPONENTS COMPONENTS S
Slide 19: Executive leadership team
Executive leadership team CEO Remy de Tonnac GM & CFO GM & Corp. COO Richard Secretary Pierre Vacher Pascal Didier Garnier Detournière EVP Mobile EVP Secure EVP Operations EVP R&D CSO Security Transactions Damien Dimitrios Simon Blake- Simon Blake W Bernard Vian Laroche Karayiannis Wilson A focused
Slide 20: To conclude
To conclude Last 12 months in a fast moving environment with a shift towards greater demand for trusted secure platforms: • Finalisation of a worldwide reorganization plan, lowering the Group’s break-even point • Revenue profile gradually reshaped with more high margin sales generated by licenses, r
Slide 21: Q&A
Agenda Key highlights Q3 Revenue Strategy update Q&A 21 Q3 2013 REVENUE AND STRATEGY UPDATE
Slide 22: Investor Information
Investor Information Contacts INSIDE Secure Brunswick INSIDE Secure Corporate communication Financial communication Investor relations Géraldine Saunière Jérôme Biscay, Mathilde Rodié Richard Vacher Detournière Marcom Director +33 (0) 1 53 96 83 83 Directeur général finances +33 (0) 4 42 39 33 01 IN