Interim Results

Fusionex International plc

("Fusionex" or "the Company" or "the Group")

Interim results for the six months ended 31 March 2015

GIANT Momentum Underpins Strong H1

Fusionex, an award-winning and market-leading international provider of enterprise software specialising in Analytics and Big Data solutions, is pleased to announce its interim results for the six months ended 31 March 2015.

Financial Highlights:

* EBITDA (MYR million) is derived from PBT (2015: 14.29; 2014: 8.18), plus amortisation of intangible assets (2015: 1.65; 2014: 1.11), plus depreciation of property, plant and equipment (2015: 1.06; 2014: 0.44), plus interest expenses (2015: 0.03; 2014: 0.35).

** Adjusted EBITDA (MYR million) is derived from EBITDA (2015: 17.03; 2014: 10.05), minus the gain on disposal of fixed assets (2015: 2.03; 2014: nil), minus unrealized foreign exchange gain (2015: 1.43; 2014: 0.06)

Operational Highlights:

· Strong sales momentum for GIANT - A total of 25 wins secured to date including in new geographies and sectors

· Significant new business pipeline underpinned by

o Investment in marketing activities

o Channel partnerships

· Current trading remains strong with positive full year outlook

Ivan Teh, Chief Executive of Fusionex, commented:

"The first half of the 2015 financial year has seen continued strong progress for Fusionex. Our Big Data Analytics product, GIANT, has achieved significant and continued uptake from clients, with a total of 25 customer wins secured for GIANT since its launch, as we build our presence in this exciting growth area. These wins have also seen us expand into new market sectors and new countries, and we continue to target international expansion and channel-driven sales to accelerate our growth."

For further details:

Fusionex

Operational and Financial Review

During the six months ended 31 March 2015, Fusionex has continued to build on the progress achieved last year and in particular the ongoing momentum in sales of the Group's Big Data Analytics software, GIANT.

Revenue for the period increased 26% to MYR 31.6 million (2014: MYR 25.0 million), with adjusted EBITDA up 36% to MYR 13.6 million (2014: MYR 10.0 million). This performance reflects the strong levels of client confidence in the Company's business intelligence and analytics offering, together with 25 wins for GIANT since its launch, of which 12 were secured in the period under review, demonstrating the increased penetration of GIANT across different geographies and industry verticals.

As announced on 11 February, Fusionex declared an interim dividend of approximately 2.10 pence per share, amounting to £903,000 in total, to shareholders on the register as at 20 February 2015. The payment was made on 13 March 2015.

In view of the Group's strong first half performance, and current high levels of demand for its product offering, the Board remains confident that Fusionex is well placed for further growth.

The Big Data market continues to drive the Group's new business activities, with 25 new GIANT wins secured since launch, taking it closer to management's target of 30 wins by the end of this financial year. Encouragingly, these contracts have been secured across a range of industries and geographies. In the first half, 87% of revenues came from Asia Pacific (FY 2014: 72%), 10% from Europe (FY 2014: 22%) and 3% from North America (FY 2014: 6%). Notable recent contract wins include:

· Intel, the world's largest chip maker, which is using GIANT for an Internet of Things (IoT) initiative, applying Big Data analytics to its equipment and sensors in order to achieve operational efficiencies and cost savings in its manufacturing processes. Intel has integrated GIANT's Big Data analytics and the IoT in manufacturing, with the initiative expected to save Intel millions of dollars annually, in a significant validation of GIANT's capabilities.

· A multi-year contract for a Smart Government initiative following a competitive tender, taking Fusionex into a new geography in Asia. This exciting initiative will see the Group supporting immigration and cross border control by analysing data to find insights and patterns for better management, both of tourism opportunities and security threats. Smart Government is an area of significant growth potential for Big Data and this contract will assist the Group in opening up other opportunities.

· Brother Industries, a multi-national electronics and electrical equipment company, was the 25th win for GIANT, signed shortly following the period under review.  Brother Industries will leverage Fusionex GIANT to monitor its daily operations across different geographies and time zones, enabling it to enhance management decisions, customer experience and business planning.

In addition, the increasing number of other customers using GIANT, which includes AEON, one of the largest retailers in Japan, and Yeo Hiap Seng, an Asian based fast moving consumer goods group, confirms the Group's position as a leading Big Data provider and strengthens its ability to attract additional GIANT customers.

The breadth and range of Fusionex's big data contracts demonstrate the increasing industry-agnostic interest in utilising technology to leverage and monetise the wealth of data available to organisations. As enterprise data continues to increase - with Gartner forecasting it will increase by 650% in the next five years - and as the Internet of Things accelerates, demand for Big Data Analytics ("BDA") is also gathering pace. In a recent Capgemini Consulting survey, "Cracking the Data Conundrum: How Successful Companies make Big Data Operational", 60% of the 226 respondents questioned, across multiple regions and business types globally, said they believe "that Big Data will disrupt their industry within the next three years". Meanwhile Gartner is predicting that by 2020, there will be as many as 26 billion connected devices, versus 3.9 billion in 2014, and this will drive rapid growth of accompanying BDA, with an anticipated CAGR of nearly 30% over the next five years (according to the International Institute of Analytics). The growth in data and the attendant need for real-time insights presents a considerable challenge to all organisations and Fusionex's GIANT offering represents an attractive solution, as demonstrated by the contract wins to date.

Underpinning Fusionex's ability to access this demand is its ongoing investment in product development, marketing and channels to market. The Company continues to strengthen its team in order to take advantage of the opportunities available, both in its core Asia Pacific markets and newer geographies. The recent launch of its own Big Data Academy, together with Fusionex's commitment to the National Big Data Analytics Innovation Network in Malaysia, will also ensure that it continues to lead the way in big data innovation, and attract and retain the best talent to support the Group's product development. In Singapore, Fusionex works closely with the Infocomm Development Authority of Singapore (IDA) on Smart City, Smart Nation initiatives.

Last year, the Group signed three channel partner agreements, Revolution Analytics, EMC and AvNet, and is beginning to see good traction via this route to market. Post-period end, in April 2015, the Group was also delighted to announce its fourth channel partnership with Mesiniaga Berhad ("Mesiniaga") (MYX: MSNIAGA), a leading ICT solutions provider and systems integrator in Malaysia, which will enable Fusionex to leverage Mesiniaga's extensive distribution network with Mesiniaga being committed to promote and resell GIANT.

The combination of the Group's own marketing activities and these channel partners supports a substantial new business pipeline, positioning the Group strongly to secure further contracts in the second half and beyond.

It is also encouraging to see that Fusionex has maintained its robust track record for renewing existing client contracts, with retention rates in excess of 95%. Not only does this represent an attractive and highly cash generative revenue stream for the business but existing customers are also recognising the benefits of its newer Big Data offering. The Company is successfully leveraging this opportunity to cross sell and upgrade contracts with its international blue-chip client list.

Growth Strategy

Fusionex is focused on building its presence in the BDA market, via its GIANT offering, underpinned by its existing base of blue-chip customers using its suite of Analytics products.

Growth will also continue to be driven by Fusionex marketing activities and by encouraging cross-selling and up-selling across the Group's existing customers. In addition, the successful channel partnerships which the Group has built will further support new business momentum, widening its reach in an effective and efficient manner. In view of the benefits of its existing partnerships, Fusionex will continue to seek additional channel partners in order to widen the sales network and market reach further.

Current Trading and Outlook

The strong first half performance and new business pipeline position the Group well for continued progress in the second half, underpinned by its continuous success in retaining existing clients. Demand for the Group's products remains high, driven by the increasing need for organisations to capitalise on the huge volumes of data available to them and Fusionex is well placed to benefit from this growth trend. As global corporations become more aware of the opportunities offered by Big Data, the Company is seeing significant potential for growth particularly within the Travel & Hospitality, Retail, Manufacturing and Smart Government sectors, where the Group's recent wins will also support its ability to address further opportunities.

Therefore the Board remains confident that Fusionex is on track to deliver continued growth for the full year.

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months period ended 31 March 2015

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the six months period ended 31 March 2015

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months period ended 31 March 2015

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months period ended 31 March 2015

1. Basis of preparation

The condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC").

The Interim Financial Statements are unaudited and have been prepared in accordance with AIM Rules for Companies and IAS 34 'Interim Financial Reporting' as adopted by the EU and should be read in conjunction with the annual financial statements for the year ended 30 September 2014, which have been prepared in accordance with IFRS adopted by the European Union.

The individual financial information of each entity is measured and presented in the currency of the primary economic environment in which the entity operates (its functional currency). The Interim Financial Statements of the Group are presented in Ringgit Malaysia (RM), which is the presentation currency for the Interim Financial Statements. The functional currency of each of the individual entity is the local currency of each individual entity.

Going concern

As at 31 March 2015, the Group had net assets of RM110,513,862 (31 March 2014: RM89,831,565; 30 September 2014: RM101,393,017) as set out in the Interim Financial Statements above. Following the admission of the ordinary shares to trading on AIM, Fusionex International Plc has considerable financial resources. As a consequence, the Directors believe that Fusionex International Plc and the Group are well placed to manage its business risks successfully and the Directors have reasonable expectations that the Group have sufficient working capital available for its present requirements that is for the next 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the historical financial information.

2. Income tax expense

Tax expense is recognised based on management's best estimate of the weighted average annual tax rate expected for the full financial year applied to the pre-tax income of the interim period. The Group's consolidated effective tax rate in respect of continuing operations for the six months ended 31.3.2015 was lower than the Malaysian statutory tax rate of 25% (six months ended 30.3.2014: 25%) caused mainly by the following factors:-

i) effects of lower tax rates in certain tax jurisdictions; and

ii) effects of certain income not subject to tax.

3. Earnings per share

The calculation for earnings per share, based on the weighted average number of shares, is shown in the table below:

4. Property, plant and equipment

Acquisitions

During the six months ended 31.3.2015, the Group acquired additional assets amounting to approximately RM1,097,000 (31.3.2014: RM5,573,000; 30.9.2014: RM7,887,000).

5. Goodwill on consolidation

During the financial period, the Group assessed the recoverable amount of the goodwill and determined that no additional impairment is required.

6. Intangible assets

The intangible assets relate to staff costs.

7. Asset held for sale/ Liability directly associated with assets classified as held for sale

On 23 December 2013, the Group entered into a sale and purchase agreement for the disposal of an office premise. The asset, reported in the year ended 30 September 2014 as an "asset held for sale" for an amount of RM3,133,832 with a directly related liability of RM2,533,052, was disposed of during the current reporting period and resulted in a gain of RM2,030,737.

8. Merger reserve

The merger reserve arose from the difference between the carrying value of the investment and nominal value of the shares of subsidiaries upon consolidation under the merger accounting principles.

9. Foreign exchange translation reserve

The foreign exchange translation reserves arose from the translation of the financial statements of foreign subsidiaries and are not distributable by way of dividends.

10. Dividends

11. Related party disclosures

Details of related party transactions in respect of the year ended 30 September 2014 are contained in Note 27 to the consolidated financial statements of the Group's 2014 annual report. The Group continued to enter into transactions in the normal course of business with its associates and other related parties during the period. There were no material transactions with related parties in the first half of 2015 or changes to transactions with related parties disclosed in the 2014 consolidated financial statements that had a material effect on the financial position or the performance of the Group.

12. Capital commitment

Authorised capital expenditure contracted but not provided for in the Interim Financial Statements is analysed as follows:-

13. Cautionary statement

The 2014 group annual report and accounts describes the principal risks and uncertainties that could impact the group's performance. These remain unchanged since the annual report was published and accordingly are valid for these interim financial statements. The group operates a structured risk management process, which identifies and evaluates risks and uncertainties and reviews mitigation activity. 

14. Seasonality of operations

The business of the Group was not affected by any significant seasonal or cyclical factors for the period under review. 

15. Segment analysis

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker as defined in IFRS 8, in order to allocate resources to the segment and to assess its performance.

All other segments primarily comprise income and expenses relating to the Group's administrative functions. Interest income and interest expense are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the Group.

Operating segments are prepared ina manner consistent with the internal reporting provided to the Executive Directors as its chief operating decision maker in order to allocate resources to segments and to assess their performance. Formanagement purposes, the Group is organised into business units based on geographical locations.

Geographical location

^ Mainly related to Asia Pacific intercompany sales

* Segment assets comprise total current assets and non-current assets less unallocated assets

** Segment liabilities comprise total current liabilities and non-current liabilities less unallocated liabilities

# Unallocated expenses mainly related to directors' fees and head office expenses.