Interim FY2010/11 Results

Transcription

1 Interim FY2010/11 Results 14 th December 2010

2 Agenda 09:30 Welcome and Introduction Geoff Shingles Chairman 09:35 Financial Results Trevor Selby CFO 09:45 Business & Technology Update Hossein Yassaie CEO 10:10 Q&As All 10:25 Product Demonstrations All 10:40 Finish 2

3 Highlights Technology PURE Group Strong growth in chip volume and royalty revenue Good growth in licensing revenue Continued momentum in SoC design wins Tough economic conditions/very cautious retailers Visible improvement since October in the UK and elsewhere Significant growth in profitability Announced the acquisition of Hellosoft & Caustic 3

4 Financial Results Trevor Selby, CFO

5 Group revenue trend m H2 FY FY H1 H1 FY 07/08** FY 08/09 FY 09/10 H1 10/11 ** 13 month period 5

6 Group profit & loss - H1 10/11 09/10 Increase % m m Revenue % Gross profit % % + 35% Expenses* (23.3) (20.4) + 14% Exchange (0.8) (0.4) Adjusted operating profit* % Interest Adjusted profit before tax* % Tax Adjusted net profit* % Adjusted earnings per share* 5.7p 2.8p * Adjusted before share based remuneration expense, gain on investment and acquisition costs 6

7 Group profit reconciliation H1 10/11 09/10 m m Adjusted net profit Shared based remuneration (2.0) (1.0) expenses Gain on investment Acquisition costs (0.3) - Reported net profit Earnings per share 4.8p 2.6p 7

8 Group profit trend * m H2 FY H1 FY FY H1 FY 07/08** FY 08/09 FY 09/10 H1 10/11 8 * Adjusted pre-tax profit ** 13 month period

9 Technology business H1 10/11 09/10 Increase m m Revenue % Adjusted operating profit % Net assets % 9

10 Technology revenue H1 10/11 09/10 Increase % Increase % m m ( ) ($) Licensing % +16% Royalties % +58% % +39% 10

11 Revenue trend licensing m H2 FY FY H1 H1 ** 13 month period 07/08** 08/09 09/10 H1 10/11 11

12 Revenue trend - royalty m H2 H1 FY FY H1 07/08** 08/09 09/10 H1 10/11 ** 13 month period 12

13 Technology - profit trend* m H2 H1 FY FY H1 FY FY 07/08** FY 08/09 FY 09/10 H1 10/11 * Adjusted operating profit ** 13 month period 13

14 PURE business H1 10/11 09/10 Increase % m m Revenue % Adjusted operating profit (1.4) 0.4 Net assets % 14

15 Revenue trend PURE m H2 H2 H2 H1 H1 H1 H1 07/08** 08/09 09/10 H1 10/11 ** 13 month period 15

16 PURE -profittrend* m FY 07/08** FY 08/09 FY 09/10 H1 10/11 FY FY H1 FY * Adjusted operating profit ** 13 month period 16

17 Group balance sheet Oct 10 Apr 10 Oct 09 Non-current assets m m m Tangible & intangible assets Investment Long term receivable Deferred tax Working capital Inventories Receivables Payables (16.9) (12.0) (14.1) Non-current liabilities (0.3) (0.4) (0.5) Net cash Net assets

18 Group cashflow H1 10/11 09/10 m m Adjusted profit before tax Depreciation, tax, etc Working capital (3.6) (1.1) Net operating cashflow Investment - capex (2.2) (0.7) Issue of shares, other Net cashflow Exchange impact (0.6) (0.4) Net increase in cash

19 Business Update Hossein Yassaie, CEO

20 Topics Company Overview Key Market Trends Business Update Technology Business Technology Trends PURE Business Summary and Outlook 20

21 Our Technology Business SoC IP Technologies Markets: Mobile Phone Mobile Multimedia Personal Computing Home Consumer Automotive Emerging Markets Consumer Products Semis Consumers OEMs Key Facts: Two Divisions: Technology & PURE Founded:1985 Listed:1994 London IMG.L Employees: more than 700 worldwide SoCs Shipped: >400m with at least one IMG IP Ranked #3 in Design IP (Gartner March 2010) Licensee Partners OEM Partners Strategic Partners SUNPLUS 21

22 End Products Increasing Numbers, Breadth of Markets and Capabilities Cumulatively 400m+ units shipped as end October

23 Mobile Phones with POWERVR SGX >75 phones with SGX shipping; >200 phones with POWERVR Apple iphone 4 Samsung Galaxy S Motorola Droid X LG Optimus Mach Samsung Wave Sony Ericsson Vivaz Pro HTC Qilin (Dopod T8388) Nokia N900 Palm Pre Plus Sony Ericsson Satio Vodafone 360 H1 Motorola MOTO XT800 Motorola MOTO XT701 NEC 931N NEC 930N NEC N-08B 23 Sony Ericsson Apple Vivaz iphone 3GS NEC 830N NEC 841N NEC N-01A NEC 940N NEC NEC NEC N-07A NEC N-01B N-04A N-08A NEC N-06A Motorola Droid 2 NEC NEC N-08A N-02A My Select NEC N-03B Motorola Droid NEC N-09A Motorola Milestone NEC N-04B NEC NEC N-02B N-04B Fujitsu F-02B Fujitsu F-01B Motorola MOTOROI XT720 Fujitsu F-07B Fujitsu F-03A Fujitsu F-06B Fujitsu Fujitsu F-09A F-09B HTC HengShan (Dopod T5588) Fujitsu F-05B Fujitsu F-01A Fujitsu Fujitsu F-08B F-03B Imagination Technologies Samsung i8910hd Fujitsu Sharp F-08A SH-06B Fujitsu F-04B Samsung Galaxy A Sharp SH-03A Sharp SH-05A Sharp SH-04A Samsung Epic 4G Sharp SH-01A Sharp SH-06A Samsung Captivate Sharp SH-08B Sharp SH-02B Sharp SH-09B Sharp SH-07B Samsung Vibrant Sharp SH-08A Samsung Fascinate Sharp SH-03B Sharp SH-04B Sharp Sharp Sharp SH-06A SH-05B SH-07A NERV Palm Pre Sharp SH-01B

24 Computing Devices with POWERVR SGX many more available and in development! Sony Vaio X-series Sony Vaio P-series Dell Mini 10 Acer Aspire One AO751H Samsung Galaxy Tab Apple ipad Asus S121 HP Slate Fujitsu UH900 Archos 101 Sharp Willcomm D4 Nokia Booklet 3G Asus R50A Clarion Mind Archos 32 Apple itouch 32GB 24

25 Business Environment & Key Market Trends

26 Worldwide Semiconductor Forecast Significant increase in Q3 10 Update Gartner Q2 10 Forecast Gartner Q3 10 Forecast Source: Gartner, November

27 Key Market Trends We re at the heart of what s happening Mobile Multimedia Smartphones - will be 50% of total mobile market Handheld Multimedia Media players, games platforms - set for growth Home Electronics Mobile Computing Automotive Emerging Markets TVs, radios, HiFi, cameras - all becoming connected Tablets - redefining mobile computing for consumers Cars - utilizing apps platforms + dashboards to meet consumer needs Consumer healthcare, smart power, ubiquitous M2M connectivity major growth areas 27

28 Technology Business Update

29 Technology Business Update IP Licensing Overall Technology Business revenue up by 48% Strong royalty growth of 69% Increased level of licensing activity - up 24% 8 significant new agreements New licensees NetLogic, Fujitsu, GeneralPlus Major licenses extensions with Intel, Apple, & Renesas Many licensees including SiRF/CSR, MediaTek, Samsung & Trident took additional SW licences and upgrades to address multiple markets Important software licensing and development agreements with key OEMs Active market segments expanding Licensing across all key areas 29

30 Technology Business Update Partner chip shipment & SoCs 107m chips shipped (2008/09: 86m) Mobile: leading position in apps processors TI, Samsung, Renesas, Marvell, Apple Strong position in Android platforms Home CE: ongoing strength in Global Digital Radio & connected audio IP platforms DTV/STB: Growing partnerships for TV/STB chips (including Google TV) - Intel, Trident, Sigma, Renesas New Digital Radio SoC from Toumaz Mobile Computing: strengthening role with both Intel-based and non-intel based tablet/netbook solutions Significant growth in volume and range of tablets chips in production Transition to POWERVR SGX and SGX MP (multiprocessor) IP almost complete 56 partner devices in design or prototype 98 devices in total shipping or in active design Growing volume shipments of META and ENSIGMA IP as well as POWERVR

31 Partner Chip Design & Shipment No. of SoCs SoC Volume (m Units) 31

32 Our targets remain unchanged Now expect to exceed 200m for full year Longer Term Target Mid-Term Target FY2010/11 32

33 SoC Design Wins Growing Market Segment Total SoCs per Segment SoCs Shipping End-user Products Mobile Phone Multimedia ~200+ Handheld Multimedia 9 6 ~25+ Home Consumer & Entertainment 23 9 ~250+ Mobile Computing 12 5 ~90+ In-car Information & Entertainment 13 7 ~15+ Emerging Markets/Others Total

34 Imagination Market Update 2013 As at June 2010 Market Segment TAM* 2013 M Units IMG SAM** 2013 M Units Potential IMG Share of SAM Key Factors Mobile Multimedia Phones Handheld Multimedia PMP, Mobile TV, DSC, games consoles Home Consumer Digital TV/STB, Radio/ Audio, DPF (photo frames) Mobile Computing Netbook PCs, Tablets In-car Electronics Navigation, PND, Dash %-50% %-50% %-25% %-40% %-30% Total Smartphones moving to commodity; the personal computer for emerging economies Some erosion by faster than expected ramp in smartphone markets Connected TVs and other CE equipment ideal for Imagination s connectivity + multimedia solutions Great promise for tablets - home computing designed for consumers, not enterprise Cars becoming apps platforms, connected, electronic dashboards * TAM = Total Available Market in the segment (e.g. total number of handsets per year) ** SAM = Serviceable (by IMG) Available Market in the segment (e.g. the proportion of handsets open to graphics use) 34

35 Company Strategy Use technology to drive and disrupt markets Focused on delivering solutions Ecosystems fundamental For all technologies and markets Growth of all our IP technologies Every IP has unique value Building on graphics success Broaden target markets Proven track record with OEMs Robust in the face of competition Grow the Group s capabilities organic growth, synergistic acquisitions 35

36 Hellosoft Acquisition Strategic partner for development of Imagination s Wi-Fi technology Targets ENSIGMA UCC Strong roadmap MIMO World s leading supplier of V.VOIP* technology complementary to Imagination s multimedia cores POWERVR video and META Extends market opportunities for Imagination into Operators and OEM s Strong operations in Hyderabad and California 36 * V.VOIP: Video and Voice Over IP

37 Caustic Acquisition Cinematic quality 3D graphics Innovative ray tracing hardware and software technology Strong patent portfolio Integrates with and complements POWERVR graphics IP Professional graphics solution Ecosystem expansion to advanced content and tool developers Unique opportunity to disrupt mainstream graphics again Operations in California OpenRL Ray Tracing API 37

38 IP Technologies Update

39 Our Technology Business SoC Technologies & Solutions Mobile Multimedia SoC Customer s Internal IP ENSIGMA Communications META META General ProcessorSignal Processing Signal Processing Audio Real Time 3 rd Party IP IMGworks Customised IP POWERVR Graphics POWERVR Video POWERVR Display Handheld Multimedia Home Electronics Audio Display Delivering all the world s standards: Mobile Computing Comms: TV Radio Mobile TV Wi-Fi Bluetooth OS: Linux Android MeOS DSP & Real Time: Audio SW Stacks DSP Real Time VOIP Graphics & GPU: OpenGL ES OpenCL EP OpenGL OpenCL OpenVG DirectX 9/10/11 Video: H264 MPEG4 MPEG2 VC1 AVS Display: De-interlace Frame Rate Conversion Noise reduction Emerging Markets Automotive 39

40 POWERVR graphics Leading the mobile and embedded graphics market ENSIGMA Communications META Processor/DSP POWERVR Graphics POWERVR Display POWERVR Video 40 POWERVR SGX Series5XT MP devices now at 1 st silicon Demonstrated Renesas SGX543MP2 in Tokyo December 6 Early OpenCL software now with multiple licensees and OEMs Running on today s production POWERVR SGX chips nobody else can do this Announced the arrival of Series6, codename Rogue Changing the goalposts in terms of performance and GPU capabilities per mm2 Multiple licensees already committed Longer term plans demonstrate Imagination s vision Graphics Reality will drive the ultimate user experiences Competition making increasingly bold claims Where are the real production devices? Do their claims match reality?

41 POWERVR video Already in over 30% of our device volume POWERVR Graphics ENSIGMA Communications META Processor/DSP POWERVR Display POWERVR Video 41 Growing uptake of POWERVR VXD video decoders Range of standards unrivalled, now including WebM (VP8) Supports H.264 MVC for full stereoscopic 3D TV (S3D) Strong enthusiasm for POWERVR VXE video encoders Support for H.264 for user generated content Increasing relevance for DTV & tablets as well as mobile phones Market drivers Decode: video everywhere and in everything Encode: user-generated content, video conferencing Video decode + encode + GPU a compelling combination

42 ENSIGMA communications Serious market demand building POWERVR Graphics ENSIGMA Communications META Processor/DSP POWERVR Display POWERVR Video Solution now comprehensive and complete Global TV platform for all HD and SD TV standards All major European, US, Japanese and Asian standards available Universal radio platform plans advancing Proven and going global Wi-Fi on-chip capabilities set to disrupt future SoC design 1 st production silicon now shipping Proven compatible with many common access points MIMO, n support coming soon key for future home media 42

43 META processors Fundamental technology used in many of our IP cores POWERVR Graphics ENSIGMA Communications META Processor/DSP POWERVR Display POWERVR Video 43 Key unique features differentiate META Hardware multi-threading; hard real-time capabilities, built-in DSP alongside full general purpose capabilities Target application areas Real-time embedded systems Can support concurrent connectivity & demanding processing OS-based applications platforms Android and Linux on same engine as real-time & DSP capabilities Enables highly cost-effective systems with ready-made ecosystems Connected processor - an important new category of systems The combination of ENSIGMA with META IP enables ubiquitous internet MeOS

44 Imagination s Flow Technology Connecting clouds to devices Content Providers TV & Radio Cloud Servers Connected Devices Flow Cloud Technology Internet Flow Device Technology 44

45 PURE Business Update

46 The world s leading DAB and connected radio brand Innovator & trend setter, showing what is possible using our IP Contemporary Traditional Bedside Handheld In-Car Connected Radio TheLounge Portal ipod Dock Micro System 46

47 Digital radio market update 47 UK Tough market environment post World Cup Jul-Sep CE down by 13.5%, DAB by 9% Major promotional activity anticipated in 2011 by DRUK Export ALL export markets back in growth (Oct/Nov YoY) Italy - now transmitting DAB+ to circa 50% of population PURE have >10 models shipping to Italian std PURE is the only approved manufacturer Germany Local DAB+ transmissions ongoing - decision due 15 th Dec for national DAB mux Switzerland showing first growth since start of 2010 France German decision will be a key driver Australia now showing growth US shipments now started Many other markets looking positive for DAB Hong Kong, Sweden, The Netherlands 2010 Imagination Technologies Ltd.

48 Business update Commercial Retailers continue to be extremely cautious Initial Christmas UK sales very positive Development delays on several key lines impacted H1 revenues New products late in year provide strong springboard for 2011 Scaling for continued export growth Internationalisation of products approved and multi-lingual products now shipping in US, Italy and France First shipments in US, France, Luxembourg, Austria and Sweden Imagination Technologies Ltd.

49 Key product and service launches 49 Digital and internet-connected radio ONE Flow: first radio to use Toumaz Xenif integrated DAB/Wi-Fi chipset Services FlowSongs: buy music direct from your radio iphone app for "the Lounge Digital radio ONE Mi: world s first premium portable digital radio > 40 Twilight: New dawn simulation category Siesta Mi: world s first premium clock digital radio < 40 EVOKE Mio by Orla Kiely and EVOKE-1S Marshall: strong for PR & international Coming in 2011 Wider market roll-out in the US & Europe Further launches of new services with Flow connectivity Significant broadening of product portfolio and markets

50 Conclusions

51 Conclusions FY2010/11 H1 Summary Significant growth in Technology business Strong momentum in chip volume and royalty growth Good licensing progress Continued strategic progress for PURE despite a tough environment The Future Our portfolio of IP is aligned with many current and future high growth markets, enabling Imagination to continue its growth momentum Acquisitions enable Imagination to complement and strengthen key IP areas Revenues: New licensing pipeline strong but timing as ever difficult to predict Royalty now expect to exceed 200m units in FY 2010/11 PURE - continued progress with new products, expanding markets but the environment challenging in the short term 51

52 Interim FY2010/11 Results 14 th December 2010