Slide 1: INSIDE Secure First Half 2016 Results
INSIDE Secure First Half 2016 Results Amedeo D’Angelo, President & CEO Richard Vacher Detournière, GM & CFO July 28, 2016
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: Agenda
AGENDA Key Highlights Q2 Revenue and Half Year Financial Overview Outlook Q&A Appendix 3 |
Slide 4: Agenda
AGENDA Key Highlights Q2 Revenue and Half Year Financial Overview Outlook Q&A Appendix 4 |
Slide 5: INSIDE Secure 1H16 Results & Highlights
INSIDE SECURE 1H16 RESULTS & HIGHLIGHTS The company is going fast through the transformation plan announced in February 2016 to focus on software activities. The execution of the projects are in line with the objectives and the timetable: 1. Sale of the semiconductor business to be completed by the
Slide 6: H1 2016 - Key Figures
H1 2016 - KEY FIGURES • Consolidated revenue1: $27.7 million, including $20.3 million in Q2 2016, a strong growth compared to 2015 • Strong trends in mobile payment and banking markets driving revenue from core business (excluding semiconductors and NFC patent licensing) : • $7.7 million in Q2 2016
Slide 7: Q2 Revenue and Half Year Financial Overview
Key Highlights Q2 Revenue and Half Year Financial Overview Outlook Q&A Appendix 7 |
Slide 8: Q2 and Half Year 2016 Consolidated Revenue
Q2 AND HALF YEAR 2016 CONSOLIDATED REVENUE Q2-2016 Q2-2015 Q1-2016 Q2-2016 Q2-2016 in thousands of US$ consolidated consolidated consolidated vs. Q2-2015 vs. Q1-2016 Mobile Security 7,694 6,020 6,138 28% 25% Unallocated 12,577 68 1,290 - - Total Revenue 20,271 6,088 7,428 233% 173% H1-2016 H1-2015 Y
Slide 9: Adjusted Income Statement (Continuing Operations)
ADJUSTED* INCOME STATEMENT (CONTINUING OPERATIONS) 6 months 6 months in thousands of US$ 2016 2015 Revenue 27,699 11,102 Cost of sales (adjusted) (4,648) (1,139) Change essentially explained Adjusted Gross profit 23,051 9,963 by revenue mix (NFC patent in % of revenue 83.2% 89.7% licences in 2016) R
Slide 10: H1 2016 - Key IFRS Results
H1 2016 - KEY IFRS RESULTS • Operating income from continuing1 operations: $20 thousands in H1 2016 (vs. $12.5 million loss in H1 2015), including: • $2.4 million non-recurring charge arising from the company’s restructuring ; • $1.9 million amortization expense related to assets arising upon the co
Slide 11: Mobile Security – Half Year 2016 (Segment Reporting)
MOBILE SECURITY – HALF YEAR 2016 (SEGMENT REPORTING) Revenue (in $’00) Adjusted operating income (in $’000) X% = Adjusted operating income as a % of revenue 0,5% (8%) 28 % 51 13 831 (1 112) 10 765 2015 2016 2015 2016 - Strong performance by secure intellectual property components product line market
Slide 12: Secure Transactions – Half Year 2016 (Segment Reporting)
SECURE TRANSACTIONS – HALF YEAR 2016 (SEGMENT REPORTING) Revenue (in $’000) Adjusted operating income (in $’000) X% = Adjusted operating income as a % of revenue 12 % (72) (0,3%) (8 922) 25 903 23 163 (25%) 2015 2016 2015 2016 - Growth in sales of EMV chips mostly in Asia and Middle East, and manufa
Slide 13: First Half 2016 Cash Flow
FIRST HALF 2016 CASH FLOW 25 in millions of US$ Continuing and discontinued operations 20.4 20 Net profit excluding non-cash items Other (+0,9) 16.4 (-0.2) 15 Change in working capital * Capital Rights issue expenditure (-2.0) (+5.4) (-0.2) 10 5 0 Dec. 31, Jun. 30 2015 * Including annual financing o
Slide 14: Outlook
Key Highlights Q2 Revenue and Half Year Financial Overview Outlook Q&A Appendix 14 |
Slide 15: Outlook
OUTLOOK • 2016: a transition year in the context of implementation of major strategic and structuring initiatives • Accordingly the company will soon be focused exclusively on its activities related to software security and embedded security technology licensing • Aims to generate profitable growth
Slide 16: Q&A
Key Highlights Q2 Revenue and Half Year Financial Overview Outlook Q&A Appendix 16 |
Slide 17: Appendix
Key Highlights Q2 Revenue and Half Year Financial Overview Outlook Q&A Appendix 17 |
Slide 18: Definitions
DEFINITIONS Continuing and Discontinued Operations 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 qualifies as a discontinued operation. Consequently, income and expense i
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
RECONCILIATION FROM ADJUSTED TO IFRS 2016 2016 Business Sharebased Other non- 2016 in thousands of US$ Adjusted combination payments recurring costs IFRS Revenue 27 699 - - - 27 699 Cost of sales (4 648) (1 764) (1) - (6 413) Gross margin 23 051 (1 764) (1) - 21 286 in % of revenue 83,2% 76,8% R&D e
Slide 21: Reconciliation from Adjusted to IFRS
RECONCILIATION FROM ADJUSTED TO IFRS 2015 2015 Business Sharebased Other non- 2015 in thousands of US$ Adjusted combination payments recurring costs IFRS Revenue 11 102 - - - 11 102 Cost of sales (1 139) (4 371) (3) - (5 513) Gross margin 9 963 (4 371) (3) - 5 589 in % of revenue 59,3% 50,3% R&D exp
Slide 22: Investor Information
INVESTOR INFORMATION CONTACTS INSIDE Secure INSIDE Secure Corporate communications Investor relations Géraldine Saunière Marcom Director Richard Vacher Detournière +33 (0) 4 42 39 33 01 GM & CFO gsauniere@insidefr.com contactinvestisseurs@insidesecure.com Financial Calendar www.insidesecure.com Q3 2