Presentation - Myriad Group

HY 2014 Results and Business Update
22 September 2014
FY 2013 Results and Business Update 20 March 2014 HY 2014 Results and Business Update 22 September 2014 1
Confidential & Proprietary © Myriad Group AG 2014
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“believe”, “assume”, “expect” or similar expressions or implied discussions regarding potential new
projects or potential future revenues, or discussions of strategy, plans or intentions. Such forwardlooking statements involve known and unknown risks, uncertainties and other factors that may
cause actual results to be materially different from any future results, performance or achievements
expressed or implied by such statements. All forward-looking statements are based only on data
available to Myriad Group AG at the time of preparation of this presentation. Myriad does not
undertake any obligation to update any forward-looking statements contained in this presentation
as a result of new information, future events or otherwise.
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Confidential & Proprietary © Myriad Group AG 2014
Agenda
Introductions
Stephen Dunford
Chief Executive Officer
H1 2014 Achievements &
Business Update
H1 2014 Financial Report
Stephen Dunford
Chief Executive Officer
Richard Francis
Chief Financial Officer
msngr evolution
Stephen Dunford
Chief Executive Officer
Q&A session
Stephen Dunford
Richard Francis
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Confidential & Proprietary © Myriad Group AG 2014
H1 2014 Achievements
! 
! 
!
! 
! 
! 
! 
msngr user numbers grow by 76% to 67m
Successful msngr migration to high performance OTT platform
msngr is now fully hosted on the cloud, enhancing performance
to handle billions of messages per day
Agreement to zero rate data plans with operator partners in
Latam making it uniquely free to users
Myriad Updates now hosted on the cloud and has reached 30m
users across 22 operators
DSD has achieved healthy royalties from set top box vendors
such as Pace, Arris & Samsung based on the increased
momentum of the RDK1.0 standard adopted by leading pay TV
operators
Completed company rationalisation ahead of plan, reducing
headcount from 317 to 176
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Confidential & Proprietary © Myriad Group AG 2014
Myriad msngr grows by 76% to 67m users
! 
Delivering the leading chat service in Latam
–  Latin American chat service launched in 16 countries
–  Up from 38m at end of 2013 to 67m users at end of half year
! 
Amazon Cloud hosted service will support high performance
and scalability
2014 MSNGR User Growth
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Confidential & Proprietary © Myriad Group AG 2014
Sub Data now provides essential USSD technology to
mobile operators in over 41 countries worldwide
…Myriad Updates visitor numbers have
increased to 30m*
Addressable
Market 700m
Addressable
Market 180m
Addressable
Market 100m
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*User data June 2014
Device Solutions
! 
! 
! 
Continued strong shipments of RDK1.0
standard set top boxes driving healthy
royalties
Number of pay TV operators has now
grown to 15 including Comcast, Time
Warner, Liberty Global, Rogers of
Canada, Japan’s Jcom and Kable
Deutschland of Germany
Myriad is RDK2.0 ready for roll out in
2015
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Confidential & Proprietary © Myriad Group AG 2014
Agenda
Introductions
Stephen Dunford
Chief Executive Officer
H1 2014 Achievements &
Business Update
H1 2014 Financial Report
Stephen Dunford
Chief Executive Officer
Richard Francis
Chief Financial Officer
msngr evolution
Stephen Dunford
Chief Executive Officer
Q&A session
Stephen Dunford
Richard Francis
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Confidential & Proprietary © Myriad Group AG 2014
HY 2014 – Summary results
H1 2013
H1 2014
%
Device Solutions
Mobile Services
Total revenue
9.0
12.5
21.5
11.2
10.6
21.8
24%
(15%)
1%
Adjusted gross profit 1
Gross margin
9.6
45%
15.4
71%
60%
26%
(2.3)
(11%)
2.8
13%
EBITDA
(3.7)
0.9
Net result
(10.6)
(2.8)
USD million
Adjusted EBITDA 2
Adjusted EBITDA margin
Notes: (1) Gross profit before amortisation and restructuring
(2) EBITDA before restructuring charges and non-recurring items
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Confidential & Proprietary © Myriad Group AG 2014
Business Model Evolution
2014 MSNGR User Growth
Revenue
USD’m
Users (M)
80
25
70
20
60
50
15
40
10
30
20
5
10
0
H1 2013
Licence
0
H1 2014
H1 13
Services
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Confidential & Proprietary © Myriad Group AG 2014
Q3 13
FY 13
Q1 14
H1 14
Reducing the cost base
Restructuring Plan Delivered
USD’m
FTE’s
30
450
400
25
350
20
300
250
15
200
10
150
5
100
50
0
H1 2013
H1 2014
0
H1 13
Non recurring exceptional and restructuring costs
Headcount
Opex
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H1 14
Improving the cash position
Reflecting underlying business health
USD’m
6
5
4
3
2
1
0
H1 2013
H1 2014
cash
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Net loss impacted by non-cash items
EBITDA(1) USD 2.8m before non-recurring items
USD’m
EBITDA
Amortisation & EBIT before nonDepreciation
recurring items
Restructuring
Motorola legal
settlement
French Social
Plan Costs
EBIT
(1.0)
(0.1)
(1.2)
Financial
Expenses &
Taxes
Net result
2.8
0.7
(2.1)
(0.9)
(1.6)
Notes: (1) Before restructuring costs and non-recurring items
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Confidential & Proprietary © Myriad Group AG 2014
(2.8)
Agenda
Introductions
Stephen Dunford
Chief Executive Officer
H1 2014 Achievements &
Business Update
H1 2014 Financial Report
Stephen Dunford
Chief Executive Officer
Richard Francis
Chief Financial Officer
msngr evolution
Stephen Dunford
Chief Executive Officer
Q&A session
Stephen Dunford
Richard Francis
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Confidential & Proprietary © Myriad Group AG 2014
The msngr user experience
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Confidential & Proprietary © Myriad Group AG 2014
How we monetise
Step 1 Step 2 Step 3 Deliver relevant content channels to users Allow relevant brands to sponsor channels Introduce commercial Channels 16
Confidential & Proprietary © Myriad Group AG 2014
Agenda
Introductions
Stephen Dunford
Chief Executive Officer
H1 2014 Achievements &
Business Update
H1 2014 Financial Report
Stephen Dunford
Chief Executive Officer
Richard Francis
Chief Financial Officer
msngr evolution
Stephen Dunford
Chief Executive Officer
Q&A session
Stephen Dunford
Richard Francis
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Confidential & Proprietary © Myriad Group AG 2014
Thank You
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Confidential & Proprietary © Myriad Group AG 2014