Half Year Results FY th December,

Transcription

1 Half Year Results FY th December,

2 Agenda Welcome and Introduction Geoff Shingles, Chairman Financial Results Richard Smith, CFO Business & Technology Update, The Future Hossein Yassaie, CEO Q&As Product Demonstrations 2 Imagination Technologies Half Year Results FY

3 Highlights Group Continued strong growth in revenue Scaling up to opportunities Technology Pure Strong licensing in the period Unit volume and royalty growth ahead of target Continued strategic technology and market developments Short-term revenues held back due to economic environment Momentum maintained in key business drivers 3 Imagination Technologies Half Year Results FY

4 Financial Results Richard Smith, CFO

5 Group revenue H1 Group revenue m /09 09/10 10/11 11/12 12/13 H2 H1 Momentum continues 27% increase in revenue year on year Strong royalty growth 5 Imagination Technologies Half Year Results FY

6 Group adjusted profit & loss H1 12/13 m 11/12 m Increase % Revenue % Gross profit % Gross profit margin 85% 83% Operating expenses Underlying (42.5) (31.4) 35% Expenses relating to Nethra (1.3) (-) Total expenses (43.8) (31.4) 39% Adjusted operating profit % Adjusted operating profit margin 24% 27% Interest Adjusted profit before tax % Growth in adjusted profitability Accelerated investment in product development and customer support in H1 Combination of organic growth and acquisitions Opex growth rate to slow down significantly in H2 6 Imagination Technologies Half Year Results FY

7 Group profit reconciliation H1 12/13 m Adjusted profit before tax Share based compensation expenses (6.0) (5.4) Acquisition related charges: Amortisation of intangible assets (1.3) (1.3) Adjustment to deferred consideration Transaction costs (0.8) - Gain on investments Reported pre-tax profit Taxation (2.4) (2.7) Reported profit after tax /12 m Sale of Frontier Silicon resulted in a gain on investment Transaction costs relate to the proposed acquisition of MIPS Technologies Share based compensation related to historic share price movements 7 Imagination Technologies Half Year Results FY

8 Technology H1 12/13 m 11/12 m Change % Revenue Royalties % Licensing % Other Total revenue % Profit * % Margin * 34% 39% Royalties - 237m units shipped in the period (123m in 2011/12) Licensing Another good year of growth: - customer base continues to diversify - full range of IP being licensed * Adjusted operating profit 8 Imagination Technologies Half Year Results FY

9 Technology licensing & royalties H1 Licensing m Royalties m /10 10/11 11/12 12/ /10 10/11 11/12 12/ Imagination Technologies Half Year Results FY H2 H1 H2 H1 Very strong growth in volumes driven by growth across full range of handsets and tablets Royalty rate movement consistent with this mix Another strong H1 for licensing

10 Technology revenue and profit H1 Revenues m Adjusted pre-tax profit m /10 10/11 11/12 12/ /10 10/11 11/12 12/13 H2 H2 H1 Strong licensing and royalties driving revenue Technology profit up 18% despite increased investment in R&D and customer support 10 Imagination Technologies Half Year Results FY

11 Pure H1 Profit m * Revenue m 12/13 m 11/12 m Increase % H2 H1 Revenue % Profit * (2.9) (1.3) DAB markets tough due to general economic environment Significant investments made in new non-dab product range * Adjusted operating profit /10 10/11 11/12 12/ Imagination Technologies Half Year Results FY

12 Group cashflow H1 12/13 m 11/12 m Adjusted profit before tax Depreciation Tax (0.6) (0.4) Working capital (13.4) (8.7) Debtors high due to timing of license agreements in the period Phase 1 of redevelopment complete Net operating cashflow Investment property, plant & equipment (12.3) (2.1) Investment intangible assets (1.6) (0.3) Investment strategic investments (4.2) (0.5) Issue of shares, other Net cashflow (11.8) 6.3 Exchange impact Net (decrease) / increase in cash (11.7) 6.7 Opening cash position Closing cash position Imagination Technologies Half Year Results FY

13 Business Update Hossein Yassaie, CEO

14 Topics Company Overview Business Update Technology Business Technology Trends Pure Business Summary and Outlook 14 Imagination Technologies Half Year Results FY

15 Company Overview Update

16 Imagination A Rich IP Portfolio A rich and complementary IP portfolio Caustic Professional PowerVR graphics & compute PowerVR video (& display) HelloSoft V.VoIP & VoLTE Flow cloud connectivity & services C o RPU m m s Graphics GPU GPU Compute Video VPU & Display Vision Processor CPU PowerVR vision PowerVR ray tracing Ensigma receivers Ensigma connectivity Meta processors 16 Imagination Technologies Half Year Results FY

17 Our licensees are diversifying Globally, across all markets, from high end to low end Semiconductor Partners SUNPLUS 17 Imagination Technologies Half Year Results FY

18 If it s the best, we re probably in it Over 1 billion products powered by Imagination Approaching 1.5 million new devices per day 18 Imagination Technologies Half Year Results FY

19 Technology Business Update

20 Technology business update Technology revenues up 34% Licensing: 17.8m (H1 2011: 19.0m; H1 2010: 11.5m ) Existing and new customer base Royalties: up 66% to 39.1m (H1 2011: 23.6m) Substantial volume growth Shipments: 237m units (H1 2011: 123m units) Volume growth across many partners and market segments Very strong penetration in emerging markets Partner SoCs: 146 (H1 2011:125) In Volume Production: 69 (H1 2011: 54) Many more designs now reaching production status 77 more SoCs in design pipeline 20 Imagination Technologies Half Year Results FY

21 Business progress Licensing continues to expand Many new and extended agreements with existing partners including Allwinner, Greenplug, MediaTek, Realtek, Renesas, TI, Toumaz Multiple on-going long-term subscription licenses with certain key partners Several new partners added including Entropic, Ineda and Socle 12 important agreements involving around 20 silicon IP core licenses New IP: camera vision Complemented through acquisition of Nethra Nethra camera technology used in many high end products We expect to ship IP in 2014 Caustic Professional: first products R2500, R2100 boards announced shipping Q Supported by HP, AMD and Boxx Visualizer plugin for Autodesk Maya Q1 2013, 3DS Max Q Excellent feedback from content production community 21 Imagination Technologies Half Year Results FY

22 Partnerships and opportunities Existing long-standing partnerships remain strong and ramping-up volume Intel, Sony, MediaTek, Renesas, ST/STE and others Several long-term subscription agreements Recent partners developing chips LG, Qualcomm, Fujitsu, Rockchip, Allwinner and others Important design wins in the pipe Samsung Multiple Tier1 TV OEMs Important China design wins Both in phone and tablets Automotive Many opportunities in licensing across various IP Industry dynamics changing Consolidation impacting some customers, but also opening up new opportunities 22 Imagination Technologies Half Year Results FY

23 Partner chip design & shipment No. of SoCs SoC Volume (m Units) Shipping Total mar-06 mar-07 apr-08 apr-09 apr-10 apr-11 apr-12 oct mar-06 mar-07 apr-08 apr-09 apr-10 apr-11 apr-12 oct Imagination Technologies Half Year Results FY

24 Design wins by market Mobile Phones Handheld Multimedia Home Consumer Mobile Computing Automotive Emerging Markets Total: 146 We continue to strengthen the diversity of SoCs across all our market segments 24 Imagination Technologies Half Year Results FY

25 We remain on target FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2016 Our goal is to achieve around 1 billion units/annum shipments 25 Imagination Technologies Half Year Results FY

26 Imagination market update 2016 As at December 2012 Market Segment TAM* 2016 M Units IMG SAM** 2016 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 Tablets, Ultra Mobile PCs In-car Electronics Navigation, PND, dashboards, communications 2,300 1,700 35%-60% %-50% %-40% %-50% %-30% All segments growing; emerging market growth accelerating MP4 players remain significant; cameras offer new opportunities Home connectivity a key growth area, especially for TV, home networking Tablets now an established high volume segment Move to integrated electronics, more comms increasing across all ranges Total 4,140 3,120 * TAM = Total Available Market in the segment (e.g. total number of handsets per year) ** SAM = Serviceable (by Imagination) Available Market in the segment (i.e. the number of non-captive chips that could use Imagination s IP) 26 Imagination Technologies Half Year Results FY

27 Growing royalty envelope Royalty rate High Low Envelope of royalties is widening as target markets broaden and IP portfolio strengthens 27 Imagination Technologies Half Year Results FY

28 Acquisition of MIPS Transaction highlights Imagination in process to acquire US-listed MIPS Imagination s proposed purchase includes: The operating business of MIPS Ownership of 82 key patent properties directly relevant to the MIPS architecture Royalty-free, perpetual licence granted to Imagination in respect of all of the remaining 498 Divested Patent Properties being sold to Bridge Crossing LLC for $350 million Anticipated to be accretive to Imagination's earnings in FY2014 Expected to close in Q1 CY Imagination Technologies Half Year Results FY

29 MIPS highlights Pioneered modern 32-bit & 64-bit RISC CPU architectures Customers shipped over 700 million royalty earning units in financial year ended 30 June royalty-paying licensees in financial year ended 30 June 2012 MIPS CPU intellectual property core licensing business generated c.us$60.0 million in revenue in its financial year ended 30 June 2012 MIPS has recently launched new Aptiv Generation of cores; highperformance proaptiv core achieves industry leading performance and area metrics One of only three architectures fully supported by Google in Android source tree and software/native development kits 29 Imagination Technologies Half Year Results FY

30 Rationale Imagination intends to acquire MIPS and integrate with its existing CPU IP activities Scale & accelerate Imagination s plans in the substantial and growing CPU IP market The integrated business aims to create a new industry-leading force in CPU development and licensing Expands markets, customers and ecosystems Significant additional revenue opportunities Giving the industry a real alternative choice in CPU IP 30 Imagination Technologies Half Year Results FY

31 Technology Trends

32 PowerVR graphics momentum Design wins continue to flourish world-wide Long-standing partners remain very committed Many new devices with both Series5/5XT and Series6 Significant growth in high volume smartphones, tablets China and Taiwan major growth areas PowerVR Series5/5XT SGX the dominant GPU Well over 100 devices in development or production PowerVR Series6 Rogue leading the way More than 20 committed SoCs Support for all new API and OS variants on track Ecosystems going from strength to strength >35,000 developers Ray tracing set to extend PowerVR lead Unrivalled technology with disruptive potential 32 Imagination Technologies Half Year Results FY

33 Continued progress with other IP families Imagination s IP portfolio breadth is unrivalled Significant progress for Ensigma communications IP Announced Ensigma Series4 supporting ac, MIMO Multi-standard TV and radio demodulation Growing customer base across Tier One and smaller companies PowerVR video decode, encode increasing market share Over 500m units shipped; market leader by far Latest products support 4K, 10-bit colour, exceptionally low power H.265 HEVC next generation video IP in development Growing interest and licenses for our Meta processor family Meta embedded processors feature hardware multi-threading Latest industry trends opening up new CPU opportunities Hellosoft V.VoIP and VoLTE market opportunity growing 4G/LTE and heterogeneous IP networks driving demand Open standards based, multi-platform voice & video over IP networks Being deployed now 33 Imagination Technologies Half Year Results FY

34 Pure Business Update

35 Three phase strategy Designed to help drive Imagination s objectives in strategic markets Phase 1: Drive and penetrate digital radio Adoption across all categories Global opportunities Phase 2: Establish lead in connected audio Hybrid radios & streaming devices Online content through cloud portal Subscription-based services Phase 3: Innovate in Home Automation Building on connected processors and Flow Utilizing Imagination s partners An element of our Internet of Things strategy 35 Imagination Technologies Half Year Results FY

36 Product & platform development Wireless streaming and internet connected New Jongo wireless multi-room speakers launched Patented synchronisation method used Broadcast radio Strengthening of core and premium product ranges In car radio and audio Strong engagements with leading car manufacturers Cloud-based services ipad, iphone and Android apps Advanced user experience Connected Set-Top Box launched Avalon Freeview+ HD to ship shortly Strategic engagements Onkyo, VW group, Universal Music Group, Alpine, Pioneer 36 Imagination Technologies Half Year Results FY

37 Pure is helping drive Technology business New Pure products raising profile and interest in our technologies Ensigma Wi-Fi Meta processors Flow cloud connectivity Analogue radio switch-off in a number of key markets including the UK Will enable Imagination to ride next wave of digital radio adoption Pure an important lead generator for the Technology business 37 Imagination Technologies Half Year Results FY

38 Conclusions

39 Conclusions FY H1 Summary: Technology: Continued solid progress Another strong growth period in licensing Chip volume ahead of target Synergistic acquisitions adding further breadth and opportunities Pure: Investing in our future strategic areas Short term flat performance due to current environment The Future: Licensing: Pipeline remains robust, but with usual uncertainty on timing Royalties: Expect full year unit shipments to be strong and close to 500m units Pure will continue strategic development and pathfinding role with improving financial performance medium term On track for continued further strong progress 39 Imagination Technologies Half Year Results FY

40 Half Year Results FY th December,