Slide 1: Inside Secure 2018 financial results
Inside Secure 2018 financial results Amedeo D’Angelo, Chairman & CEO Richard Vacher Detournière, GM & CFO March 6, 2019 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: 2018 results: strong operational & financial performance
2018 results: strong operational & financial performance • Robust top line growth more than offsetting expected unfavourable base effect • +8% to $42.1 million • Core business revenue +35% excluding historical US customer • Confirmed software business model • EBITDA of $6.6 million (15.6% of revenue
Slide 4: 2018: leveraged our assets
2018: leveraged our assets more than off setting expected unfavorable base effect Our core Our Our NFC security customers Patent solutions Portfolio +41%: core business revenue growth (excluding New significant agreements with existing customers $1.8M revenue historical US customer) +8%: consolidate
Slide 5: 2018 - Continued significant progress in tackling high potential markets
2018 - Continued significant progress in tackling high potential markets such as data centers, mobile networking, IoT and connected cars From embedded security into … to secure … to applications chips… communications… signed a leading Multiple design wins to company to help embed security securing i
Slide 6: 2018 - Entertainment: Leveraging leadership in content protection
2018 - Entertainment: Leveraging leadership in content protection to enable our customers to address new security challenges New simpler, user- friendly and modern Tackle new content Video-on-demand solutions to highly protection needs to applications secure content further secure protection custome
Slide 7: 2018: Accelerating clear strategy to increase footprint of embedded security
2018: Accelerating clear strategy to increase footprint of embedded security INCREASE FOOTPRINT MANAGE OPERATE OF CORE PROPRIETARY SECURITY NEW SECURITY TECHNOLOGIES SOLUTIONS SERVICES COMBINING ORGANIC INITIATIVES AND ACQUISITIONS 7 | © 2019 Inside Secure
Slide 8: Verimatrix: Adding on Inside Secure's offering
Verimatrix: Adding on Inside Secure’s offering, by building synergies in a broader marketplace New business dimension: $124.2 million of adjusted revenue* and $22.2 million of EBITDA* Entertainment Entertainment Internet of Things Financial Data Center Verimatrix OTT & Connected Cars Institutions Ve
Slide 9: Inside Secure 2018 financials
Inside Secure 2018 financials March, 2019 www.insidesecure.com 9 |
Slide 10: Basis of presentation of 2018 financials
Basis of presentation of 2018 financials Forenote: Final revenue for 2018 unchanged compared with the estimate communicated on January 15, 2019. EBITDA of $6.6 million slightly higher than the unaudited $6.2 million communicated at that time due to lower operating expense. The revenue and results fo
Slide 11: 2018 Core business revenue: +4% vs. 2017
2018 Core business revenue: +4% vs. 2017 +35% excluding historical US customer $35.8m $38.8m $40.3m Growth in maintenance and other revenues in line with 5,6 4,9 overall activity growth 5,0 9,7 13,5 6,6 +39%: year-on-year revenue growth leveraging strong sales activity with both existing and new cus
Slide 12: 2018: Successfully diversified customer base of core business
2018: Successfully diversified customer base of core business 2017 2018 Top10 customers 58% 43% 12 | © 2019 Inside Secure
Slide 13: 2018: continuous Significant growth in licenses
2018: continuous Significant growth in licenses REVENUE RUN RATE OVER 3 YEARS x2 (IN M$) License revenue (in $ million) • Reaping the benefit of investing in sales development * • Addressing new security challenges to up-sell customers • Leveraging strong market dynamics, notably in Datacenters, Mob
Slide 14: 2018: Demonstrated software business model of core business
2018: Demonstrated software business model of core business in million $, core business 2018 2017 2016 CAGR Core business revenue 40,3 38,8 35,8 4% Gross profit 38,9 37,6 34,7 4% as % of revenue 97% 97% 97% - Operating expense (34,1) (29,3) (33,5) 1% as % of revenue 85% 76% 93% Adjusted operating in
Slide 15: Disciplined management of operating expense
Disciplined management of operating expense in million $ 2018 2017 Revenue 42,1 38,8 Gross profit 39,7 37,0 Research and development expenses (14,3) (11,4) Selling and marketing expenses (13,1) (12,5) General and administrative expenses (7,0) (6,7) Other gains / (losses), net 0,3 1,3 Operating expen
Slide 16: 2018: Positive IFRS net income
2018: Positive IFRS net income in million $ 2018 2017 Var Adjusted operating income Core business 4,9 8,3 (3,4) Adjusted operating income "NFC" 0,7 (0,6) 1,3 Adjusted consolidated operating income 5,6 7,7 (2,1) - Adjustments to IFRS (*) (4,4) (6,1) 1,7 Consolidated IFRS operating income 1,2 1,6 (0,4
Slide 17: 2018: cash generation reflecting operating performance
2018: cash generation reflecting operating performance in million $ 2018 2017 Cash generated by operations before changes in working capital 3.3 5.1 Cash generated by / (used in) changes in working capital 0.6 (1.6) Interest received, net and Income tax (1.1) (1.1) Net cash generated by operating ac
Slide 18: Sound balance sheet with disciplined cash management
Sound balance sheet with disciplined cash management December 31 December 31 in million $ 2018 2017 Goodwill and intangible assets 35.4 38.0 Property, plant & equipment 1.2 1.3 Other receivables 5.1 1.7 Total non current assets 41.7 41.0 Trade receivables 11.2 15.5 Bonds reedemable in shares - - Oth
Slide 19: Closing of the acquisition of Verimatrix
Closing of the acquisition of Verimatrix • Closing of the acquisition of Verimatrix Inc. on February 28, 2019 • $138.1 million paid at closing, plus an additional amount of $9.8 million set in escrow to cover potential post-closing adjustments and an earn-out, estimated to $8 million* • Unaudited pr
Slide 20: Inside Secure Looking ahead
Inside Secure Looking ahead March, 2019 www.insidesecure.com 20 |
Slide 21: Business outlook: 2021 Targets confirmed
Business outlook 2019 2021 Targets confirmed Strong focus on integrating Verimatrix and delivering first $150m revenue cost synergies ($4m) EBITDA >25% Higher EBITDA* due to Verimatrix incremental earnings & generation of first cost synergies (*) on a like-for-like basis by integrating only Verimatr
Slide 22: Appendix
Appendix www.insidesecure.com 22 |
Slide 23: 2018 financials - Basis of preparation
2018 financials - Basis of preparation IFRS 15 - Figures for 2018 and 2017 have been prepared in accordance with IFRS 15 “Revenue from Contracts with Customers" Supplementary non-IFRS financial information (adjusted measures) • Certain financial measures and performance indicators are presented on a
Slide 24: Reconciliation from Adjusted measures to IFRS
Reconciliation from Adjusted measures to IFRS in million $ 2018 2017 EBITDA 6,6 8,8 Amortization and depreciation of assets (*) 1,0 1,1 Adjusted operating income/(loss) 5,6 7,7 Business combinations (**) (1,9) (2,4) Other non recurring costs (***) (1,8) (3,1) Share based payments (0,7) (0,5) Operati
Slide 25: 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 Q1 2019 revenue: April