Preliminary FY2010/11 Results

Transcription

1 Preliminary FY2010/11 Results 22 nd June 2011

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 Very strong momentum in chip volume and royalty revenue progress ahead of plan Strong growth in licensing revenue with several significant new major licensees Continued momentum in SoC design wins across all major market areas Challenging retail environment in UK and globally Good growth in international sales Significant growth in profitability Hellosoft & Caustic announced and integration underway 3

4 Financial Results Trevor Selby, CFO

5 Group revenue trend m /08** 08/09 09/10 10/11 ** 13 month period 5

6 Group profit & loss 10/11 09/10 Increase % m m Revenue % Gross profit % % + 38% Expenses (52.5) (42.9) + 22% Exchange (0.9) 0.3 Adjusted operating profit % % +80% Interest Adjusted profit before tax % Tax Adjusted net profit % Adjusted earnings per share 10.8p 7.3p + 48% 6

7 Group profit reconciliation 10/11 09/10 m m Adjusted net profit Shared based remuneration (5.9) (3.3) expenses P&L on investments Acquisition related charges: Amortisation of intangible assets (0.9) - Transaction costs (0.8) - Reported net profit Earnings per share 7.7p 6.0p 7

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

9 Technology business 10/11 09/10 Increase % m m Revenue % Profit* % Margin* 38% 29% Net assets % * Adjusted operating profit 9

10 Technology revenue 10/11 09/10 Increase % Increase % m m ( ) ($) Licensing % +24% Royalties % +69% % +47% 10

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

12 Revenue trend - royalty m /08** 08/09 09/10 10/11 12 ** 13 month period

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

14 PURE business 10/11 09/10 Increase % m m Revenue % Profit* (2.8) (0.3) Net assets % * Adjusted operating profit 14

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

16 PURE profit trend* m 07/08** 08/09 09/ / * Adjusted operating profit ** 13 month period

17 Acquisitions Caustic Hellosoft Total m m m Net assets (0.5) (1.5) (2.0) Intangible assets Goodwill Deferred tax (1.6) (3.0) (4.6) Consideration - paid future

18 Group balance sheet Apr 11 Apr 10 m m Non-current assets Tangible & intangible assets Investments Deferred tax Working capital Inventories Receivables Payables (17.7) (12.0) Non-current liabilities (13.8) (0.4) Net cash Net assets

19 Group cashflow 10/11 09/10 m m Adjusted Profit before tax Depreciation, tax, etc Working capital (5.9) (5.7) Net operating cashflow Investment - capex (13.5) (1.7) Investment acquisitions (27.9) - Issue of shares, other Mortgage Net cashflow Exchange impact (0.7) (0.1) Net increase in cash

20 Business Update Hossein Yassaie, CEO

21 Topics Company Overview Key Market Trends Business Update Technology Business Technology Trends PURE Business Summary and Outlook 21

22 Company overview Leading Silicon, Software & Cloud IP Supplier POWERVR graphics, video, display processing ENSIGMA receivers & comms processors META processors embedded,real-time,dsp,linux Flow connectivity client & portal technologies Recent Acquisitions: Hellosoft WLAN & V.VoIP technologies Caustic Ray Tracing technology & tools Licensees: Leading Semis, OEMs & Operators #3 Silicon Design IP provider * Innovative Consumer Product Manufacturer PURE digital radio, internet connected audio Customer IP ENSIGMA ENSIGMA Comms SoC Receivers META META ProcessorSignal Linux/RTOS DSP Audio Real Time 3 rd Party IP IMGworks IP Audio POWERVR Graphics POWERVR Video Solution Centric IP POWERVR Display Display Established technology powerhouse Founded 1985; London LSE:IMG.L Employees: approx. 900 worldwide Global operation and customer base * Source: Gartner IP Suppliers Report, April 2011 UK Headquarters R&D Sales 22

23 Our partners through every stage Semiconductor Partners Our Announced Semiconductor Partners SUNPLUS Some of our key development community partners Some of Our Key OEM Partners OEMs Consumers 23 PURE is a market driver and ensures Imagination is close to consumer needs

24 End products Increasing numbers, breadth of markets and capabilities 24

25 Business Environment & Key Market Trends

26 Worldwide semiconductor forecast Growth continues mainly in the markets we address Revenue US$b Source: Gartner, April

27 Key market trends We re at the heart of what s happening Handheld Multimedia Mobile Phone Multimedia Smartphones: - ~50% of phone TAM within 2 years - App stores & graphical UIs key drivers Media Players, Games Consoles, Cameras: - following smartphone trends, all with Wi-Fi Home Electronics TVs, Radios, Home Audio: - becoming connected, graphical UIs, Apps Mobile Computing Emerging Markets Automotive Tablets, Personal Computers: - huge momentum in tablets lots to come - redefining mobile computing In-Car Electronics: - Better multimedia integration - Electronic Dashboard, Apps Healthcare, Smart Power, Security, M2M: - emerging major growth markets - driving the next 10b devices! 27

28 Technology Business Update

29 Technology business update IP licensing Overall Technology Business revenue up by 47% Strong royalty growth of 69% Increased level of licensing activity - up 25% Strongest ever licensing pipeline Many significant new licensees and agreements 20+ deals involving over 35 IP cores New licensees: STMicroelectronics, STEricsson, Fujitsu, LG, SiS, Netlogic, Skyviia and General Plus Major license extensions with leading partners including Intel, TI, Renesas, MediaTek and CSR Many licensees took additional SW licences and upgrades to address multiple markets Important new licenses with leading carrier and handset manufacturer for Hellosoft VoIP Active market segments expanding Licensing across all key areas 29

30 Recent license agreements & partners major announcements Several significant license agreements with key players Nova A9600 POWERVR Series6 Rogue OMAP5 POWERVR SGX544MPx Partners key SoC announcements: ST-Ericsson Unveils NovaThor Family - Changing the Game Texas Instruments Announces OMAP5430/5432 and OMAP4470 Renesas announces APE5R Mediatek announce MT6573 App Processor 30 APE5R POWERVR SGX543MP2 Sony PlayStation Vita POWERVR SGX543MP4+ New major product launches: ipad2 from Apple Sony Computer Entertainment Launches PlayStation Vita Portable Entertainment System Blackberry launches Playbook

31 Technology business update Partner chip shipment & SoCs 245m chips shipped (2009/10: 126m) Mobile: strong position in apps processors Partners including TI, Renesas, Marvell, Samsung in full production with MediaTek, STEricsson and others to follow Strong position in Android platforms Home CE: Growing demand for graphics, connectivity & multistandard broadcast reception DTV/STB: Growing partnerships for TV/STB chips - Intel, Trident, Sigma, Renesas, Fujitsu, LG, SiS, Realtek Radio/Audio: New Xenif SoC from Toumaz Mobile Computing: Strong position across all major OS platforms including Android, QNX(RIM), and Windows 48 chips in production Transition to POWERVR SGX and SGX MP (multi-processor) IP almost complete 67 partner devices in design or prototype 115 devices in total shipping or in active design Growing volume shipments of META and ENSIGMA IP as well as POWERVR 31

32 No. of SoCs SoC Volume (m Units) Partner chip design & shipment Total In Design In Production 20 0 mar-02 mar-03 mar-04 mar-05 mar-06 mar-07 apr-08 apr-09 apr-10 apr mar-02 mar-03 mar-04 mar-05 mar-06 mar-07 apr-08 apr-09 apr-10 apr-11 32

33 Our target was exceeded 245m devices shipped m/year target exceeded! 245m devices shipped in FY2010/ Future 33

34 Our next target is more ambitious 1200 Our Next Target: ~1b devices/year within 5 years! Future 34

35 SoC design wins continuing to grow Market Segment Total SoCs per Segment SoCs Shipping Mobile Phone Multimedia Handheld Multimedia Media players, cameras, games consoles Home Consumer Digital TV/STB, radio/ audio, photo frames, media servers Mobile Computing Netbooks, laptop PCs, tablets In-car Electronics Navigation, PND, dashboards Emerging Markets Smart power, security, healthcare, toys etc Total

36 Imagination market update 2014 As at June 2011 Market Segment TAM* 2014 M Units IMG SAM** 2014 M Units Potential IMG Share of SAM Key Factors Mobile Phone Multimedia Phones Handheld Multimedia Media players, cameras, games consoles Home Consumer Digital TV/STB, radio/ audio, photo frames, media servers Mobile Computing Netbooks, laptop PCs, tablets In-car Electronics Navigation, PND, dashboards %-60% %-50% %-30% %-50% %-30% Total Smartphones the future of mobile feature phones are not surviving; graphics also moving into low end Sony Vita example of new growth; cameras ideal target market connectivity & GPU Connected & hybrid TVs ; emergence of home networking as next major CE market driver Great promise for tablets: mobile computing for consumers; mobile PC business will remain important 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 (i.e. the number of non-captive chips that could use Imagination s IP) 36

37 Hellosoft Update Wi-Fi technology now implemented in ENSIGMA UCC Series3 IP platform and future roadmap defined including n MIMO Hellosoft Hyderabad Wi-Fi engineering team now integrated into core ENSIGMA engineering operation V.VoIP software IP product reviewed and roadmap in place Multiple license agreements completed since acquisition for V.VoIP software IP V.VoIP technology used successfully to strengthen dialogue with operators and handset manufacturers Hellosoft Communicator SDK Hellosoft Communicator SDK for PC VoIP, Media Engine, SIP Wideband Codecs Video Codecs IMS Framework VCC, DSC, MIH, PoC, ICM Video, IM, GLM Hellosoft Gateway SDK for POTS, Fax etc 37

38 Caustic Update Initial technology presentation to lead semiconductor and OEM partners has received very positive feedback Rollout planned for the professional, gaming and ultimately mobile markets Integration of the technology into future POWERVR graphics architectures planned and proceeding smoothly Work underway to progress the OpenRL API as an industry standard Brazil Interactive Renderer now being used by several leading ISVs initial feedback extremely positive We continue to be very excited about this disruptive technology! 38

39 Technology Trends

40 Our technology business SoC Technologies & Solutions Mobile Phone Multimedia Customer s Internal IP 3 rd Party IP IMGworks Customised IP ENSIGMA Communications SoC META META General ProcessorSignal Processing Signal Processing Audio Real Time 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 40

41 Imagination at the heart of the future Imagination s technologies are integrated into many of the leading platforms for every major OS Our ecosystem is large and growing; developers focus on Imagination-based platforms first for the most innovative content We have the best technology performance per mm2 and per mw Partner focused deep and long term relationships 41

42 GPU increasingly dominates SoC processing Data parallel architecture enables almost linear speedup 65nm SoC GPU multi-processor and multi-pipe configurability enables far more extensive processor scaling than CPUs SMPs unlikely to scale past 4 CPUs CPU GPU Video Decode 40nm SoC SMP CPU Video Decode SMP SMP CPU Other IP & Memory MP 4-pipe GPU 4-pipe GPU 28nm SoC 4-pipe GPU 4-pipe GPU CPU Video Decode SMP SMP CPU SMP SMP CPU SMP CPU Video Encode Other IP & Memory MP N-pipe GPU N-pipe GPU N-pipe GPU N-pipe GPU N-pipe GPU N-pipe GPU N-pipe GPU N-pipe GPU 42

43 GPGPU much more than graphics OpenCL EP APIs will be used alongside OpenGL ES APIs to bring a wealth of new capabilities to mobile and embedded platforms Image Processing: dynamic contrast enhancement image sensor compensation post-processing effects Image Analysis: gesture recognition object lassoing and tracking Complex Physics: advanced body dynamics fluid dynamics Data Analysis: in-scene object classification image correlation 43

44 Video & V.VoIP: dominating IP traffic In the next few years, more than 70% of all traffic on carrier networks will be video-based Social networking everywhere bidirectional audio and video being uploaded and streamed Voice & Video over IP not just in handsets, but TVs, toys, healthcare monitors, cameras Any high volume solution needs high quality at lower bitrate to keep infrastructure operating bidirectional H.264 High Profile everywhere advanced voice/audio codecs 44

45 Towards everything connected Programmable connectivity is now a reality Cloud-based M2M connectivity a multi-billion unit market Integration of programmable connectivity onto SoCs is inevitable as happened with graphics Wi-Fi Connectivity chip DTV Receiver Chip SoC Processor [CPU] Memory Memory Radio Receiver Chip Modem Chip Communications_ [RPU] I/O, Analogue, Power Multimedia [GPU + VPU] 45

46 Connecting devices to services Providing rich connected services & content shrink-wrapped Flow cloud technology Flow Services & Ecosystem Partners Flow device technology PURE Lounge Branded Services Payment Services Provider FlowSongs Media Content Provider TV & Radio Providers Healthcare Services Security Services Provider FlowRegister FlowControl FlowStream FlowUpdate Flow APIs FlowRegister FlowControl FlowStream FlowUpdate Flow APIs the cloud METAflow Connected Processor 46

47 GPU adoption is just getting going Ultimately every device that has a display will need a GPU OpenCL unlocks the door to the massive processing power of GPUs for non-graphics applications Adoption Rate We re only ~20% up the curve 47

48 but many technology adoption curves lie ahead and even more opportunities lie ahead for video, communications, connected processors Adoption Rate 48

49 PURE Business Update

50 PURE pioneers new technologies and designs better solutions for connecting consumers to the things that matter Contemporary Traditional Bedside Handheld In-Car Cloud-connected Products, Apps & Portal ipod Dock Micro System 50

51 Global digital radio market update PURE maintains #1 position in UK market conditions for DAB and Consumer Electronics in general remain tough stronger promotional plans confirmed for peak 2011 by broadcasters National digital radio in Germany agreed and due to launch August 1st has the potential to double PURE SAM in Europe backed up by impressive regional and local broadcast plans PURE maintains #1 position in Switzerland sales back in growth following earlier channel overstock PURE lead partner in new marketing body to drive market growth Strong market growth in Australia PURE shipments and retail engagement strong in France despite a 2 year delay to their digital radio launch DAB+ rollout in Italy slowed down due to spectrum issues Steady progress in Denmark FM switch-off announced for 2017 in Norway DAB+ launch expected in Hong Kong in December 2011 Positive signals from Belgium, Austria, Spain and Netherlands 51

52 Business update Commercial UK market remains challenging CE category down >20% YoY May 2011 Retail closures & consolidation Despite UK, FYQ4 total sales up 9% PURE maintaining market share Margins holding despite component, material & freight cost increases Stronger 2011 retail ranging agreed, should help offset adverse market Export growth Growth in every month in H2 in ALL key export markets H2 YoY growth 75% Cloud-based product strategy Extending the connected PURE range Strengthening UK #1 position Increasing momentum in export markets Strong promotion on the back of new services 100% 80% 60% 40% 20% 0% 100% 80% 60% 40% 20% 0% Export Growth Export UK 07/08 08/09 09/10 10/11 Q4 10/11 Connected versus Receive-Only Receive-Only Connected 07/08 08/09 09/10 10/11 Q4 10/11 52

53 Traditional digital radio Strengthening of core categories Introduction of strong lifestyle portfolio Product & platform development Cloud-based products & services 18,000+ radio stations and 200,000+ on-demand programmes Key price point with sub 100 One Flow New revamped Lounge portal Launched localised Lounge sites for US, Germany, Australia, France and Switzerland (Italy by end of June) Coming in this year Strengthening handheld and in-car DAB options Further convergence products for docking and streaming New music streaming platforms Key extensions to connected product range Further exclusive Lounge content Major updates to Lounge apps on multiple platforms Compelling new features with range refreshes 53

54 Conclusions

55 Conclusions FY2010/11 Summary Excellent growth in Technology business Strong momentum in chip volume and royalty growth Very active licensing 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 Integration of acquisitions is proceeding well, enabling Imagination to extend and strengthen key IP areas Revenues: Licensing pipeline strongest ever exact timing always difficult to predict Royalties/chip volumes now targeting ~1b unit shipment within 5 years PURE - continued progress with new products, expanding markets but the environment remains challenging in the short term 55

56 Preliminary FY2010/11 Results 22 nd June 2011