Minds nds + Machi hine nes Group up Limited H1 unaudited interims 2018 September 26 2018
Disclaimer This presentation ( Presentation ) is being provided to you ( Recipient ) by Minds + Machines Limited ( Company or MMX ). The information in the Presentation is subject to updates, revisions and amendments. The Presentation is not an admission document or an advertisement and is being provided for information purposes only. The content of this Presentation has not been approved by an authorised person for the purposes of Section 21(2)(b) of the Financial Services and Markets Act 2000 ( FSMA ), and does not constitute or form part of, and should not be construed as, any offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any securities of MMX ( Shares ) in the United States or any other jurisdiction. 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The distribution of this Presentation in certain non-UK jurisdictions may be restricted by law and therefore persons into whose possession this Presentation comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdictions. Slide 2 Minds + Machines Group Limited | Confidential
MMX H1 a Glance Ticker Symbol: LSE: MMX Registered digital identities H12018 operating EBITDA 1.65 million $0.7 million 1.5m at 30.06.18 -38% YoY increase 176% YoY increase H12018 renewal revenue Domain registry portfolio $3.4 million 32 new gTLDs 40% YoY increase Including ICM acquisition –completed 16.6.18 LOCATIONS H12018 group revenue • Seattle, WA $6.4 million • London, UK Commenced trading Employees • Dublin, Ireland 2014 27 • Munich, Germany 22% YoY increase • Xiamen, China Slide 3 Minds + Machines Group Limited | investor presentation
Contents 1. H1 summary financials 2. The investment case 3. Innovation 4. Our portfolio 5. Management team 6. Major shareholders Slide 4 Minds + Machines Group Limited | investor presentation
H1 2018 summary income statement Group Statement of Comprehensive Income COMMENTS H1 2018 H1 2017 YE 2017 Revenues increased 22% $millions $millions $millions Renewal revenue increased 40% to $3.4M (H1 2017: $2.4) Revenue 6.42 5.28 14.32 Less Partner payments (1.14) (1.00) (2.36) Major benefits of onerous contract provision to hit from H2 onwards Cost of Sales (2.00) (1.40) (3.44) COGs being actively managed down for 2019 Gross Profit 3.28 2.88 8.51 One-off 2017 revenue gTLD applications - - 2.11 Flat but will increase for FY then reduced for FY 2019 as ICM integration Opex completes (2.61) (2.63) (5.29) Operating EBITDA Costs 0.67 0.25 5.33 Near 3x increase in operating EBITDA Strat, Acq and Restructuring costs (1.41) (0.14) (0.30) Includes $721k legacy contract restructuring payment Bad debt provisions (2.12) - - Reflects new IFRS 9 standard - historically no bad debt Impairment loss on intangibles (4.10) - - Consequence of onerous contract provision Onerous lease provision (6.99) - - Provision made following failure of partners' marketing to impact Other (FX, etc) (0.70) (0.53) (1.05) minimum revenue commitments of contract EBITDA (14.64) (0.42) 3.99 Other (Deprec, etc) (0.09) (0.08) (0.16) Income Tax 0.05 (0.02) (0.02) Net Profit (14.68) (0.53) 3.81 Slide 5 Minds + Machines Group Limited | Interim Results H1 2018
One-off adjustments $721k paid to restructure an existing agreement on a specific Top Level Domain – no further restructuring payments • are foreseen $691k paid to third parties covering the $30million + acquisition of ICM and wrap up strategic review • $11.1million write down based on onerous contract provisions – includes a $4.1million impairment of an intangible • asset and a $7.0million provision based on expected current and future losses $2.1million provision for bad debt based on new accounting standards in effect in 2018 (IFRS 9) - Company still seeks • to collect on outstanding debt Slide 6 Minds + Machines Group Limited | investor presentation
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