Slide 1: INSIDE Secure First Half 2012 Financial Results
INSIDE Secure First Half 2012 Financial Results August 3, 2012 1 CORPORATE PRESENTATION – FIRST HALF 2012 EARNINGS RELEASE
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: H1 2012 key highlights
H1 2012 key highlights • Consolidated revenues of $62.2 million for the first half of 2012, affected in particular by the unfavorable change in RIM mobile handsets deliveries • Adjusted operating loss of $16.2 million • Solid cash position of $95.5 million as of 30 June 2012 • Intel strategic partne
Slide 4: Revenue Q2-2012
Revenue Q2-2012 Q2-2012 Q2-2011 Q1-2012 % Change % Change in thousands of US$ consolidated consolidated consolidated annual sequential Mobile NFC 8 348 6 700 14 258 25% -41% Mobile NFC 8 348 6 694 14 258 25% -41% SIM cards - 6 - -100% - Digital Security 12 789 14 930 11 938 -14% 7% Secure Payment 7
Slide 5: Revenue H1-2012
Revenue H1-2012 H1-2012 H1-2011 H2-2011 % Change % Change in thousands of US$ consolidated consolidated consolidated annual sequential Mobile NFC 22 606 9 304 38 657 143% -42% Mobile NFC 22 606 8 434 38 524 168% -41% SIM cards - 870 133 -100% - Digital Security 24 728 32 481 27 779 -24% -11% Secure
Slide 6: Income statement H1-2012
Income statement H1-2012 H1-2012 H1-2011 Transitional items impacting in thousands of US$ consolidated consolidated gross margin • Outsourcing of Secure Element Revenue 62 200 70 360 • Evolving business mix • Absence of design wins during Cost of sales (47 726) (50 489) Atmel’s division sale process
Slide 7: Mobile NFC
Mobile NFC Revenue (in $m) Adjusted operating income (in $m) 22 606 +143% (10 087) (16 386) 9 304 (108%) (73%) H1-2011 H1-2012 H1-2011 H1-2012 x % Adjusted operating income in % of revenue • H1-12 revenue increase by 143% year-over-year to $22.6 million but H1-12 decreased vs. H2-12, mainly affected
Slide 8: Digital Security
Digital Security Revenue (in $m) Adjusted operating income (in $m) 25% (-24%) 32 481 17% 24 728 8 066 4 110 H1-2011 H1-2012 H1-2011 H1-2012 x % Adjusted operating income in % of revenue • Revenue of $24.7 million: new accounts (eg. Pay-TV) only partly balancing non recurring businesses and decrease
Slide 9: Secure Payment
Secure Payment Revenue (in $m) Adjusted operating income (in $m) 28 575 (2 410) (48%) (4 235) 14 866 (16%) (15%) H1-2011 H1-2012 x % Adjusted operating income in H1-2011 H1-2012 % of revenue • Revenue down 48% due to the downturn in the US market contactless payment solutions and lack of design wins
Slide 10: Cash flow H1-2012
Cash flow H1-2012 In millions of US$ Net proceeds Net income from primary excluding non- shares cash items Change in working 5.9 (14.3) capital Capital expenditures (4.9) Other (5.6) 0.3 99.1 Change in working capital (inventories, 99.1 trade accounts receivable including 95.5 factoring & trade paya
Slide 11: Sound balance sheet to support growth
Sound balance sheet to support growth Available cash of $95.5m as of June 30, 2012 Assets As of June 30, 2012 Equity & liabilities PP&E and intangible assets 23 689 9 940 Other receivables (net) Other non-current assets 7 244 19 594 Trade receivables Working capital 32 240 25 155 Inventories 135 239
Slide 12: 2012 Outlook
2012 Outlook • INSIDE Secure remains focused on: consolidating its position as a pioneer in the NFC market diversifying its customer base stepping up its innovation efforts to obtain design wins with tier-one mobile handset manufacturers • Confirmation of target of achieving the first sales of
Slide 13: APPENDICES
APPENDICES 13 CORPORATE PRESENTATION – FIRST HALF 2012 EARNINGS RELEASE
Slide 14: P&L reconciliation from IFRS to Adjusted H1-2012
P&L reconciliation from IFRS to Adjusted H1-2012 H1-2012 Business Sharebased Other non- H1-2012 in thousands of US$ IFRS combination payments recurring costs adjusted Revenue 62 200 - - - 62 200 Cost of sales (47 726) 1 077 69 - (46 581) Gross margin 14 473 1 077 69 - 15 619 in % of revenue 23,3% 25
Slide 15: P&L reconciliation from IFRS to Adjusted H1-2011
P&L reconciliation from IFRS to Adjusted H1-2011 H1-2011 Business Sharebased Other non- H1-2011 in thousands of US$ IFRS combination payments recurring costs adjusted Revenue 70 360 - - - 70 360 Cost of sales (50 489) 1 268 93 (49 128) Gross margin 19 871 1 268 93 - 21 232 in % of revenue 28,2% 30,2