NETWORK SOLUTIONS FOR THE INTERNET OF THINGS. First-Half 2017 Results

Transcription

1 NETWORK SOLUTIONS FOR THE INTERNET OF THINGS First-Half 2017 Results

2 SPEAKERS WILLIAM GOUESBET - CO-FOUNDER EXECUTIVE OFFICER Chairman and Chief Executive Officer IT and Telecommunications Engineer (IFSIC - RENNES) Mitsubishi Electric, Nortel Networks, Wavecom YANNICK DELIBIE - CO-FOUNDER TECHNOLOGY & INNOVATION OFFICER Telecommunications and Industrial IT Engineer (POLYTECH PARIS SUD & SHERBROOKE) French MoD, Mitsubishi Electric, Wavecom In 2016 o Revenue of 14.1m o Average annual growth of 57% from 2013 to 2016 o 25% of revenue from abroad o More than 25% of revenue invested in R&D o 80 employees at the end of the financial year o ISO 9001 certified ROBERT CLAPHAM OPERATIONS & FINANCIAL OFFICER DECF & Masters in Financial Management (HEC - PARIS) Eurofins Scientific, Groupe Armor, Sapmer

3 OVERVIEW 1 PROFILE A specialist in the IoT HALF-YEAR RESULTS 3 Results in line with the roadmap 2 H1 HIGHLIGHTS OUTLOOK 4 A first half full of challenges Profitable growth and rise up the value chain 3

4 PART1 A SPECIALIST IN THE INTERNET OF THINGS

5 OUR MISSION TO PROVIDE NETWORK SOLUTIONS WITH OUR INFRASTRUCTURE AND SERVICE OFFERS to allow our customers to benefit from the explosion in the Internet of Things Historical and alternative telecom operators Businesses & Local authorities 5

6 A WINNING COMBINATION: STATIONS + RELATED SERVICES Connected objects with sensors Smart cities Services Design of connected objects Consulting and Design Stations Infrastructure and network services Rollout and Oversight Network management software and services Services Management of connected objects Remote monitoring and management Business applications Smart metering Reference Design Geolocation Tracking Smart grid IoT users Reference Design Development tools for business applications Telecom operators, Businesses & Local authorities 6

7 THOUSANDS OF NETWORKS TO ROLL OUT, OPERATE AND OPTIMISE In multiple sectors and applications Historical and alternative telecom operators Multi-market public networks Businesses & Local authorities Private networks for vertical applications Smart cities Healthcare Smart metering Smart agriculture Smart grid Tracking COVERAGE ROBUSTNESS 4 performance challenges COST OF DEPLOYMENT AND OPERATING COST ENERGY AUTONOMY THE ANSWER: LPWAN TECHNOLOGY

8 PART2 A FIRST HALF FULL OF CHALLENGES

9 3 OUR 4 PRIORITIES IN Increase our potential to acquire new clients 2 Secure funding for our rapid development Execute orders signed over recent months 4 Continue to structure the company IN THE FIRST HALF OF THE YEAR, SIGNIFICANT PROGRESS... 9

10 1 SECURE FUNDING FOR OUR RAPID DEVELOPMENT Successful capital increase Shareholder structure at 30 June M RAISED After full exercise of the extension clause Free float 65,08% Sodero Gestion 0,94% CM-CIC Innovation 13,89% Octave II & III 1,00% Executive management 14,32% Managers & employees 4,77% 10

11 2 EXECUTE ORDERS SIGNED OVER RECENT MONTHS TATA: ROLLOUT IS WELL UNDERWAY, INTERNATIONAL SHOWCASE CONTRACT TERMS < over 10,000 stations to roll out 18 to 24 months maximum 2,000 cities and communities to cover 400 million people will benefit from the world s largest LoRa network DELHI > AS OF THE END OF JUNE 2,000 LoRa stations already delivered > Contributed more than 20% of first-half 2017 revenues > AS OF THE END OF SEPTEMBER BOMBAY BANGALORE 600 stations manufactured in India with Flex 11

12 3 INCREASE OUR POTENTIAL TO ACQUIRE NEW CLIENTS New industry-leading clients signed during the first half of the year Argentina Incondor s connected network Several hundred stations National coverage planned by July 2018 Poland Polish leader in the IoT Already operating in Warsaw and its suburbs More than 15 cities are already covered Ireland Pervasive nation : a testbed for researchers and manufacturers to test ideas before they are marketed First step towards a national IoT network Historical and alternative telecom operators Businesses & Local authorities 12

13 3 INCREASE OUR POTENTIAL TO ACQUIRE NEW CLIENTS MAJOR PROJECTS UNDERWAY NORTH AMERICA 3 projects EUROPE 18 projects RUSSIA 3 projects MIDDLE EAST 1 project ASIA 7 projects LATIN AMERICA 6 projects AFRICA 2 projects INDIA 2 projects OCEANIA 2 projects Head office Existing subsidiaries 2017 sites 13

14 3 INCREASE OUR POTENTIAL TO ACQUIRE NEW CLIENTS Opening of the subsidiary in the United States 2020 August 2017 Mid-2018 Mid-2019 Commercial launch PHASE 1 CUSTOMISING THE OFFER PHASE 2 ENHANCING PRODUCT BRAND AWARENESS AND CUSTOMER BASE PHASE 3 INCREASING SALES 14

15 3 INCREASE OUR POTENTIAL TO ACQUIRE NEW CLIENTS Value added services significant progress GEOLOCATION REMOTE MANAGEMENT OF IOT SENSORS The principle Geolocation of objects is managed via the station, with precision within a few tens of metres without GPS The principle Secure and simultaneous update and automatic optimisation of a fleet of connected objects with no network congestion from a central interface The challenge Last major step in the rise up the value chain The challenge Last major step in the rise up the value chain MAJOR PROGRESS in terms of precision SUCCESSFUL DEMONSTRATION At the LoRa Alliance Open House and Market Place in Philadelphia - June

16 PART3 HALF-YEAR RESULTS IN LINE WITH THE ROADMAP

17 CHANGE IN REVENUE Change in revenue (in k) Change in revenue from equipment / services Change in revenue from telecom operators / corporations and local authorities +87% 10,088 K Reference design 56K 5,400 K x % % % % % 4712 H H Revenue - France Revenue - International H H Revenue - Equipment Revenue - Services H H Reference design Revenue - Public Operators Revenue - Private Operators 17

18 INTERNATIONAL MARKET PENETRATION FOCUS ON AREAS THAT SHOW HIGH INVESTMENT IN IOT IN 2017: INTERNATIONAL REVENUE MULTIPLIED 3.7-FOLD ALL AREAS GROWING STRONGLY x H H In thousands 38% OF TOTAL H REVENUE VERSUS 20% IN H EUROPE (Excluding France) 1,408 K x2 3,965 K in H revenue AMERICAS 178 K x3.6 ASIA-PACIFIC 2,379 K x7 18

19 SIMPLIFIED INCOME STATEMENT IFRS ( k) 2016 H H Income from ordinary operations 14,117 5,400 10,088 Cost of sales -8,578-2,901-6,711 Gross margin 5,538 2,499 3,377 Other operating costs -6,227-3,094-4,491 EBITDA ,114 Depreciation and amortisation Operating income -1, ,586 Financial income Income tax Net income, group share -1,725-1,088-1,579 19

20 CONTINUING TO STRUCTURE THE COMPANY TO SUPPORT GROWTH CHANGE IN HEADCOUNT Change in headcount Breakdown of workforce at 30 June 2017 (change compared to 31/12/2016) Administration Customer support and production management 53 20% +4 30% +4 First half 2017 R&D Marketing & Sales 32% 18%

21 FOCUS ON OPERATING EXPENSES IFRS ( k) H H H Revenue 5,400 8,717 10,088 Other income 1,741 6,095 3,585 Consumed purchases and subcontracting -3,210-10,064-8,652 Other purchases and external expenses -2,043-2,433-2,668 Payroll expenses -2,371-2,429-3,378 Other operating income and expenses EBITDA ,114 21

22 IFRS ( k) 31 December June 2017 SIMPLIFIED BALANCE SHEET Net assets and other non-current assets 5,393 6,574 Current assets 15,824 17,303 Cash and cash equivalents ,803 Total assets 21,642 41,680 Shareholders equity 10,156 27,662 Long- and medium-term financial liabilities 1,069 2,633 Other non-current assets Current financial liabilities 1,687 3,657 Equity notes 0 0 Other current liabilities 8,431 7,399 Total liabilities 21,643 41,680 22

23 In thousands 30 June June 2017 STATEMENT OF CASH FLOWS Opening cash position Cash flow from operations Change in NWC Investment flows Financing flows Closing cash position Opening cash position Cash flow from operations Change in NWC Investment flows Financing flows Closing cash position 21,662 16,302 8,734 7,460 1, ,359-1,491-2,274-1,636 23

24 Milliers CHANGE IN SHARE PRICE INNOVATIVE COMPANY At 26 September 2017 Share price Market capitalisation 102.8m Index affiliation EN GROWTH ALLSHARE Shareholder Digest ISIN code Ticker FR ALKLK Reuters code ALKLK.PA Number of shares 5,086, Market EURONEXT GROWTH /16 06/16 07/16 08/16 09/16 10/16 11/16 12/16 01/17 02/17 03/17 04/17 05/17 06/17 07/17 08/17 09/17 10/17 Closing price (LHS) Volume (RHS) 24

25 PART 4 PROFITABLE GROWTH AND RISE UP THE VALUE CHAIN

26 ADDED VALUE OUR STRATEGY: RISE UP THE VALUE CHAIN Revenue: 70m (1) Revenue: 25m (1) SERVICES FOR APPLICATIONS INFRASTRUCTURE AND NETWORK SERVICES INFRASTRUCTURE AND NETWORK SERVICES LATE (1) Targets 26

27 1 2 A NEW ORGANISATION BASED AROUND 2 BUSINESS UNITS Infrastructure and network solutions > Design, roll out and operate connectivity solutions dedicated to the Internet of Things Services for applications > Provide and develop services for business application developers Network planning software and services Design and manufacture of multi-technology stations Manage and maintain the operational conditions of the network Geolocation Reference Design Device Management 2 priorities: Confirm the trend on infrastructure and prepare to ramp up services 27

28 A NEW ORGANISATION BASED AROUND 2 BUSINESS UNITS 2 BUSINESS UNITS 3 OPERATIONS SUBSIDIARIES KERLINK SINGAPORE KERLINK US KERLINK INDIA 6 CENTRAL DEPARTMENTS + INNOVATION & TECHNOLOGIES + ADMINISTRATION & FINANCE + INFORMATION SYSTEMS + MARKETING & COMMUNICATION + QUALITY SYSTEM + HUMAN RESOURCES 28

29 FOR 2017 OUR TARGETS FULL YEAR REVENUE 25m SECOND HALF EBITDA Highly positive 29

30 OUR TARGETS IN 2020 REVENUE IN EXCESS OF 70 MILLION 30

31 Q&A NETWORK SOLUTIONS FOR THE INTERNET OF THINGS