IMImobile PLC · 9/30/2018 · IMImobile PLC Interim Results Overview Six Months Ended 30 September 2018 . ... a partner with proven experience and track record in the financial

Jay Patel, Chief Executive Officer

Mike Jefferies, Chief Financial Officer

November 2018

IMImobile PLCInterim Results Overview Six Months Ended 30 September 2018

Interim Results Presentation FY19, 30 September 2018

H1 Group highlights - continued growth and strategic progress

2

Financial highlights Operational highlights

▪ Strong period of new blue chip client wins in the UK and South Africa

▪ Enhanced operating leverage: EBITDA margin up 26.4% from 23.1%

▪ Partnership momentum: initial new client wins

▪ Continued investment in innovation – new messaging channels including

Apple Business Chat & Rich Communication Services

▪ Strengthened position in North America – Impact Mobile acquisition

▪ Post period end acquisition of Express Pigeon: a US email marketing

platform provider

▪ Revenue up 26% (15% organic) to £67.2m (2017: £53.1m)

▪ Gross profit up 18% (3% organic) to £29.2m (2017: £24.7m)

▪ Strong organic gross profit growth from monthly recurring

revenues of 18% (excluding impact of MTN)

▪ Adjusted EBITDA up 35% to £7.7m (2017: £5.7m)

▪ Adjusted profit after tax up 40% to £4.7m (2017: £3.3m)

▪ Diluted adjusted EPS up 35% to 6.6p (2017: 4.8p)

▪ Cash and cash equivalents at 30 September 2018 of £12.0m

(31 March 2018: £15.7m)

21.5

27.8

36.0

53.1

67.2

0

10

20

30

40

50

60

70

80

FY15 FY16 FY17 FY18 FY19

13.5

16.6

20.2

24.7

29.2

0

5

10

15

20

25

30

35


3.8

4.5

5.35.7

7.7

0

1

2

3

4

5

6

7

8

9


H1 Revenue (£m) H1 Gross Profit (£m) H1 EBITDA (£m)

(EBITDA margin: adjusted EBITDA / gross profit)


A global cloud communications software and solutions provider

3

▪ #1 in UK, South African and Canadian markets

▪ 1,100+ employees globally, HQ in London, offices in Dubai, Hyderabad, Johannesburg and Toronto

▪ Listed on London Stock Exchange’s AIM Market

▪ Track record of profitable and cash generative growth for more than 16 years

A world in which consumers are

delivered great customer experiences

through continuous, seamless

engagement, powered by best in

class software and automation.

Our vision

Our customers

Who we are

CLLOGO

CLLOGO

CLLOGO

CLLOGO

CLLOGO

CLLOGO

CLLOGO

CLLOGO

CLLOGO

CLLOGO

At scale


Market opportunity and positioning


There is a global B2C communications opportunity driven by technology

5

BETTER

NETWORKS

BETTER

DEVICES BETTER

SOFTWARE+ + = DISRUPTION

Person to person communications have already changed

Businesses face challenges in creating seamless customer experience

1.3 billion users on FB Messenger

1.5 billion users on Whatsapp

1.3 billion active Apple devices

Legacy systems

Complex integrations

Regulations

Existing contracts

Businesses will communicate with consumers as easily as people communicate with each other


Personalised

Relevant

Real-time

Two-way

Contextual

There are major shifts within the communications market

6

Automation of

customer service

New digital and mobile

communication channels

Change in consumer

expectations

Pressure for businesses to

digitally transform

Apple Business Chat | RCS | WhatsApp

Contextual and

real-time marketing

24/7 service

availability

Moving infrastructure

into the cloud

Big opportunities for scalable communications solution providers


The CPaaS market opportunity

7

End-user spending on CPaaS expected

to grow at a CAGR rate of nearly 50%

between 2016 and 2021.

50% CAGR

The CPaaS market is forecast to grow

from $2bn in 2017 to $10.9bn in 2022.

$10.9bn by 2022

CPaaS (Communications Platform as a Service) is a cloud-based middleware on which you can develop, run

and distribute communications software.

A CPaaS platform offers APIs that simplify the integration of communications capabilities into any app, service or

business process. It is a flexible solution that gives greater scalability while reducing time to implementation,

meaning a faster route to enhanced customer experience.

By 2020, 30% of enterprises will deploy

CPaaS use cases from 5% in 2017.

30% by 2020


Our position in the customer engagement landscape

8

IMImobile’s key differentiators

▪ Provide end-to-end automation and integration for our clients

▪ Comprehensive self developed market leading technology & IP

▪ Software purpose built for large enterprise businesses as opposed to other vendors who target SMB or developer audience

Integration & Business

Process automation

InboundOutboundMarketing

communications

Service

communications

Email

Contact Centres

Voice based

(Recent Salesforce

acquisition)

9

Customer Updates


Improving the parcel delivery experience

10

Deployed in less than 3 months

▪ Hermes deployed IMIconnect as part of their

‘Digital Futures’ programme

▪ IMIconnect will enhance millions of delivery

notifications each month of behalf of

Hermes’s retail clients

▪ Customer journeys currently built include:

1. Geo fencing – provides a location for each parcel

with delivery updates sent over a choice of

channels

2. ‘SafePlace’ photo – photographic evidence that

parcels have been deposited, providing

increased confidence of successful delivery

IMImobile has been instrumental in helping to

deliver our ‘Digital Futures’ programme that

prioritises customer experience through

investment in innovation and technology.

Chris Ashworth, Chief Information Officer at Hermes

“”

Interim Results Presentation FY19, 30 September 2018 11

Delivery

NotificationsHermes


Powering marketing communications automation

12

▪ Capitec is South Africa’s fastest growing bank

▪ IMImobile delivers a centralised client

communications hub to create a more

personalised digital banking experience for

Capitec’s 10 million customers

▪ IMIconnect speeds up the delivery of new

innovative banking services such as:

› Account & transaction notifications

› Credit status checks

› Customer feedback surveys We are pleased to work with IMImobile,

a partner with proven experience and

track record in the financial services

sector.

“”Francois Viviers, Executive: Marketing & Communications


UK’s first Apple Business Chat service

13

▪ npower became the first client for IMImobile

using Apple Business Chat

▪ A new way for consumers to connect directly

with businesses using the Messages app on

Apple devices

▪ Using the new messaging capability to improve

customer experience for customers looking to

switch to a smart meter

› Send rich media messages to customers

illustrating smart meter benefits and installation

process

› Customer service agents can trigger a post-chat

survey for feedback using emojis


Apple Business Chat

IMImobile is one of 18 approved providers

globally to offer Apple Business Chat

First to offer new channels to our customers

Google RCS

IMImobile is one of 23 companies globally

that joined Google’s Early Access Program


Account growth: Tier 1 telecom service provider, UK

15

< £1M SaaS fees

(contracted)

> £1M SaaS fees

(contracted)

Mark

etin

g A

uto

matio

n

Back-end System Integration

Ad-hoc Marketing

Campaigns

Email Marketing

Campaigns

Multi-channel

Campaign

Management

Event triggered

customer journey

orchestration

2019

2021

2016

2018

2015

2014

Account Growth (p.a)

< £100K projects

£100-500K projects<0.5m

>2.5m

>15m

>30m

>45m

>100m

2014 2015 2016 2017 2018 2019

Volume of Customer Interactions Managed by our Products

40+ customers forecasted for

over £0.5m revenue at full year

(33 in FY18 & 27 in FY17)

Interim Results Presentation FY19, 30 September 2018Unaudited Preliminary Results Year End March 2018

16

Financial Results


Commercial Model

17

Volume of e-mail, SMS, MMS,

push notification, sessions etc.Licences & one-off professional

services

Contracted revenues

25% 40% 20% 15%Fixed fees Usage based Transactional Non

recurring

Monthly Recurring Revenue(MRR)

Gross Profit Split*

Fees based on revenue transactions

~85%

*Indicative gross profit split


Adjusted trading performance

18

Year endedSep-18

£m

Sep-17

£m

Growth

%

Revenue 67.2 53.1 +26%

Gross profit 29.2 24.7 +18%

Administrative expenses

(excluding D&A)(21.5) (19.0) +13%

Adjusted EBITDA 7.7 5.7 +35%

EBITDA margin 26.4% 23.1%

Adjusted profit after tax 4.7 3.3 +40%

Diluted adjusted EPS 6.6p 4.8p +35%

Gross profit split


0

5

10

15

20

25


H1 Gross Profit in £m

MRR License & professional services

Regional overview – Europe & Americas

19

Operational highlightsFinancial highlights

▪ Revenue £51.0m (2017: £35.2m)

▪ Gross profit £20.3m (2017: £13.8m)

▪ Gross margin 39.8% (2017: 39.1%)

The AA The AA The AA The AAThe AA The AA The AA

6.6

9.9 10.6

13.8

20.3

▪ Contributed 70% of Group gross profit, representing year on year gross

profit growth of 48%, of which 21% is organic

▪ Significant new blue chip client wins across multiple sectors including

Hermes and npower

▪ Continued to generate substantial upsell revenue from established clients

e.g. renewed substantial contract with tier one UK mobile operator

▪ Partner programme has gained momentum in the region

▪ Acquisition update:

▪ Healthcare Communications – meeting significant growth

expectations

▪ Impact Mobile acquisition expanded North American operations

▪ Post period end acquisition of Express Pigeon


0

1

2

3

4

5

6

7

8



0

1

2

3

4

5

6



Regional overview – MEA and India & SEA

20

Middle East & Africa India & South East AsiaGross Profit £4.6m (2017: £5.6m) Gross Profit £4.3m (2017: £5.3m)

▪ Continued to experience headwinds due to trading

conditions in Nigeria and new group policies with our

largest client in the region

▪ Expanded our footprint in the region, deploying new

projects in Jordan and Palestine.

▪ 20% gross profit growth in enterprise revenues

▪ Significant new client wins in the banking sector

▪ Experienced a decline due to recognition of

deployments for Telenor in the first half of last year

▪ Expanded telecom service offering into new territories

e.g. Sri Lanka and Myanmar

▪ Textlocal India has onboarded over 6,000 new

customers during the period

4.4 4.5

6.7

5.6

2.52.2

2.9

5.3

4.6

4.3


Balance sheet

21

AssetsSep-18

£m

Mar-18

£m

Cash

Trade receivables

Pass through revenues

Other current assets

12.0

34.7

4.5

5.2

15.7

28.8

5.2

6.1

Current assets 56.4 55.8

Goodwill

Acquired intangibles

Other intangible assets

PPE

Other non-current assets

41.6

19.9

11.0

4.3

0.6

33.3

12.3

8.1

4.6

0.5

Non-current assets 77.4 58.8

Total assets 133.8 114.6

Net Assets 56.2 54.2

LiabilitiesSep-18

£m

Mar-18

£m

Trade payables and accruals

Pass through revenues

Other current liabilities

28.3

5.1

18.9

27.6

5.7

12.7

Current liabilities 52.3 46.0

Non-current liabilities 25.3 14.4

Total liabilities 77.6 60.4

High quality receivables

Strong balance sheet


Adjusted cashflow

22

Period endedSep-18

£m

Sep-17

£m

Cash generated from operations 5.5 5.7

Net cash from operations 5.0 5.4

Investing activities (20.1) (2.9)

Financing activities 11.3 (0.1)

Cash and cash equivalents at

beginning of period15.7 14.7

Foreign exchange on opening

balances0.1 (1.7)

Cash and cash equivalents at end

of period12.0 15.4

Cash conversion of 80%

Period endedSep-18

£m

Mar-18

£m

Cash 12.0 15.7

Borrowings (21.3) (11.4)

Net (debt)/cash (9.3) 4.3

Net cash

Additional debt facility of £10m


Growth Strategy


Growth Strategy

1 2 3 4

Accelerate market

penetration through

partnerships

Grow our share of

interactions for existing

customers

Introducing new

innovative customer

engagement technologies

Leverage acquisitions for

market distribution

+ +

Established track record of performance since IPO

3 year gross profit CAGR of 21%

Canada’s leading provider of

end-to-end mobile engagement solutions


Summary and outlook

25

▪ Technology landscape moving in the direction that we anticipated

▪ Strongly positioned to benefit from disruption in business to consumer communications

▪ Market leader in UK, South Africa & Canada

▪ Number of new blue chip client wins and expansion with existing clients

▪ Strengthened position in North America with acquisition of Impact Mobile

▪ Continued investment in innovation

▪ FY19 trading in line with management expectations


London

IMImobile Europe Ltd.

5 St John’s Lane

London

EC1M 4BH

United Kingdom

Hyderabad

IMI Mobile Pvt. Ltd

Plot No. 770

Road No. 44

Jubilee Hills

Hyderabad – 500 033

Dubai

IMImobile VAS Ltd. FZE

P.O. Box 293593

Office # 624, Building 5EA

Dubai Airport Free Zone,

Dubai, U.A.E

Little Rock

IMImobile North America

201 E. Markham,

Suite 150

Little Rock,

AR 72201

USA

Johannesburg

IMImobile South Africa

Clearwater Office Park,

Building no. 3, First Floor.

Corner Christiaan De Wet and

Millennium Boulevard,

Strubensvalley,

Roodepoort, Gauteng,

South Africa

Theale

IMImobile Intelligent

Networks

Abbey House

1650 Arlington Business

Park, Theale

RG7 4SA

United Kingdom

High Wycombe

Swan House

White Hart Street

High Wycombe

HP11 2HL

United Kingdom

Toronto

IMImobile Canada

4 King Street West

Suite 1700

Toronto, Ontario

M5H 1B6

Canada

Thank you

IMImobile PLC · 9/30/2018 · IMImobile PLC Interim Results Overview Six Months Ended 30 September 2018 . ... a partner with proven experience and track record in the financial

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