Slide 1: INSIDE Secure 2014 Earnings Presentation
INSIDE Secure 2014 Earnings Presentation Remy de Tonnac, CEO Richard Vacher Detournière, GM & CFO February 27, 2015
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 2014 Key Highlights Q4 Revenue and Full Year Financial Overview Outlook for 2015 Q&A Appendix 3 | 27/02/15 - 2014 Earnings Presentation
Slide 4: Agenda
AGENDA 2014 Key Highlights Q4 Revenue and Full Year Financial Overview Outlook for 2015 Q&A Appendix 4 | 27/02/15 - 2014 Earnings Presentation
Slide 5: 2014 Key Highlights
2014 KEY HIGHLIGHTS • Consolidated revenue of $125.4 million in 2014 with fundamentally different product mix compared with 2013 • Strong growth in adjusted* gross margin to 59% of revenue vs. 39% in 2013, as a consequence of the strategic repositioning • Adjusted operating profit of $8.1 million vs
Slide 6: Q4 Revenue and Full Year Financial Overview
2014 Key Highlights Q4 Revenue and Full Year Financial Overview Outlook for 2015 Q&A Appendix 6 | 27/02/15 - 2014 Earnings Presentation
Slide 7: Q4-2014 Revenue
Q4-2014 REVENUE Q4-2014 Q4-2013 Q3-2014 % Change % Change in thousands of US$ consolidated consolidated consolidated annual sequential Mobile Security 12 222 19 668 12 966 -38% -6% Secure Transactions 22 730 19 748 12 677 15% 79% Unallocated 320 - 200 - 60% TotalRevenue Total Revenue 35 35 272 272 3
Slide 8: FY 2014 Revenue
FY 2014 REVENUE 12 months 12 months % Change in thousands of US$ 2014 2013 annual Mobile Security 57 938 73 797 -21% Secure Transactions 65 391 80 827 -19% Unallocated 2 033 - - TotalRevenue Total Revenue 125 125 362 362 154 154623 623 -19% -19% FY 2014 revenue down 19% but with a fundamentally diff
Slide 9: Successful Execution of Strategic Repositioning
SUCCESSFUL EXECUTION OF STRATEGIC REPOSITIONING Revenue split by nature (in m$) Adjusted gross margin trend 33 (21%) Revenue from licences, 59 royalties, development and (47%) maintenance 122 58,9% 59,8% Revenue from sale of products (79%) (Chip based) 67 37,9% 39,8% (53%) 2013 2014 (ie les $) H1 20
Slide 10: Adjusted Income Statement
ADJUSTED INCOME STATEMENT 12 months 12 months in thousands of US$ 2014 2013 24% increase in Revenue Revenue 125362 125 362 154 623 154 623 adjusted gross profit: anticipated revenue Cost of sales (adjusted) (50 963) (94 363) contraction offset by Adjusted Gross profit 74 399 60 260 improvement in ad
Slide 11: Mobile Security
MOBILE SECURITY Revenue (in $m) Adjusted operating income (in $m) X% = Adjusted operating income (21%) as a % of revenue 20% 11 525 73 797 (9%) 57 938 (6 676) 2013 2014 2013 2014 • Decrease in sales due to discontinuation of NFC sales to BlackBerry • Sharp increase in gross margin from 49.4% to 89.2
Slide 12: Secure Transactions
SECURE TRANSACTIONS Revenue (in $m) Adjusted operating income (in $m) X% = Adjusted operating income as a % of revenue (19%) 7% 5 895 (8%) 80 827 65 391 (5 309) 2013 2014 2013 2014 • Decline in revenue due to continued erosion of legacy EMV and ID business in Europe • Progressive ramp-up of new prod
Slide 13: FY 2014 Cash Flow
FY 2014 CASH FLOW In millions of US$ Change in Capital 60 working expenditure capital s Net income Restructuring excluding non- Metaforic cash outlays cash items (6.4) acquisition 7,2 50 (1.5) 8.4 40.2 (12.9) Repayable advance Other 40 36,3 (1.7) Significant inventory reduction ($5.3 million) 30 alo
Slide 14: Strong Balance Sheet
STRONG BALANCE SHEET Assets Equity & liabilities As of December 31, 2014 Goodwill 24 623 12 217 Mobile Security 3 192 Secure Transactions PP&E and intangible assets 34 454 Research tax credit (net of financing) Equity 9 710 90 698 12 893 Other receivables (net) Other non-current assets 1 196 13 580
Slide 15: Outlook for 2015
2014 Key Highlights Q4 Revenue and Full Year Financial Overview Outlook for 2015 Q&A Appendix 15 | 27/02/15 - 2014 Earnings Presentation
Slide 16: Outlook 2015 - Confirm Positive Impact of Strategic Repositioning
OUTLOOK 2015 - CONFIRM POSITIVE IMPACT OF STRATEGIC REPOSITIONING • Win customers in mobile and connected devices with our embedded security solution approach • Get first significant commercial success in mobile banking and HCE MPayment thanks to our unique offering (derived from Metaforic acquisiti
Slide 17: Appendix
2014 Key Highlights Q4 Revenue and Full Year Financial Overview Outlook for 2015 Q&A Appendix 17 | 27/02/15 - 2014 Earnings Presentation
Slide 18: Appendix
2014 Key Highlights Q4 Revenue and Full Year Financial Overview Outlook for 2015 Q&A Appendix 18 | 27/02/15 - 2014 Earnings Presentation
Slide 19: Definitions
DEFINITIONS Adjusted measures Certain financial measures and performance indicators are presented on an adjusted basis. These indicators are not defined under IFRS; they should be considered to be supplementary information, not substitutable for any other indicators of operating and financial perfor
Slide 20: Reconciliation from Adjusted to IFRS FY 2014
RECONCILIATION FROM ADJUSTED TO IFRS FY 2014 2014 Business Sharebased Other non- 2014 in thousands of US$ Adjusted combination payments recurring costs IFRS Revenue Revenue 125 125362 362 - - - 125 125 362 362 Cost of sales (50 963) (11 932) (43) - (62 938) Gross margin 74 399 (11 932) (43) - 62 424
Slide 21: Reconciliation from Adjusted to IFRS FY 2013
RECONCILIATION FROM ADJUSTED TO IFRS FY 2013 2013 Business Sharebased Other non- 2013 in thousands of US$ Adjusted combination payments recurring costs IFRS Revenue Revenue 154 154 623 623 - - - 154 154 623 623 Cost of sales (94 364) (11 953) (71) (106 389) Gross margin 60 259 (11 953) (71) - 48 235
Slide 22: Investor Information
INVESTOR INFORMATION CONTACTS INSIDE Secure Brunswick INSIDE Secure Corporate Financial communication Investor relations communication Géraldine Saunière Richard Vacher Detournière Jérôme Biscay, Mathilde Rodié Marcom Director GM & CFO +33 (0) 1 53 96 83 83 +33 (0) 4 42 39 33 01 contactinvestisseurs