Slide 1: TXT e-Solutions Corporate Overview
TXT e-Solutions Corporate Overview March 2016
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by TXT e-solutions (“TXT”) and is general background information about TXT’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this prese
Slide 3: TXT at Glance: International Software & Services
TXT at Glance: International Software & Services 40% +12.4% vs. 2014 60% +14.2% vs. 2014 Fashion, Luxury & Specialty Retail Aerospace, Automotive & Transport • Fashion/Luxury & Specialty Retail • Aerospace, Automotive & Transport • Omnichannel End-to-end Planning • Embedded Software & Simulation- an
Slide 4: FY 2014 & 2015 Results
FY 2014 & 2015 Results FY 2014 FY 2015 Revenues: 55.9 m€ (+6.3%) 61.5 m€ (+13.1%) Net Income (Norm.) 3.3 m€ (-10.1%) 3.9 m€ (+17.4%) Free Cash Flow 9.3% of Rev. 8.4% of Rev. NFP: 8.5 m€ 8.3 m€ 5 years CAGR +11% p.a. 5 years CAGR +11% p.a. 4
Slide 5: 2015 Financial highlights
2015 Financial highlights Revenues: € 61.5 million (+ 13.1% compared to normalized 2014) TXT Perform grew +12.4%; TXT Next +14.2%, Software revenues +26.4%: Service revenues +9.1%. 55% of revenues from outside Italy. EBITDA before Stock Grant: € 6.7 million (+16.2% compared to normalized 2
Slide 6: Fashion, Luxury & Specialty Retail
Fashion, Luxury & Specialty Retail 6
Slide 7: TXT Retail – Major Growth & Profit opportunity for TXT Group
TXT Retail – Major Growth & Profit opportunity for TXT Group Strategy - Global leader in: Retail Planning solutions for Fashion, Luxury & Specialty Software Services Retailers: end-to-end, from collection to stores 43% 57% Spain 2% North Am. Italy 16% 11% APAC Germany 8% 21% UK & Nordics 21% France
Slide 8: Unique Customer Base of 300+ Luxury Global Brands
Unique Customer Base of 300+ - 15+ New Major Customers and 50+ Go-Lives of Major Projects, each Year … - … across all Segments, Business Models & Geographies Luxury Global Brands Fast Fashion Specialty Department Store Luxury Global Brands Fast Fashion Mixed Goods Mixed Goods 8
Slide 9: End-to-End Merchandise Lifecycle Management
End-to-End Merchandise Lifecycle Management Core to Retailers’ competitive differentiation is the Merchandise Lifecycle, the end-to-end process that encompasses: - Understanding customer needs and opportunities, - Devising a brand and product • Strategic Plan • Assortment Strategy • Trend R & D • Fo
Slide 10: Unique Integrated Software Solution
Unique Integrated Software Solution The 1st & only TXT Retail enables Customer- End-to-End Merchandise Lifecycle Management Software driven Merchandising Excellence through an End-to-End Merchandise Lifecyle Management Software featuring: - A unified database that informs the End-to-End Merchandise
Slide 11: AgileFit Deployment: from SW to Business Best Practices
AgileFit Deployment: from SW to Business Best Practices «Ready to Go» Mitigate Project Solution Design Workbook Design Interface Specification Risk Reduce Project Costs Faster Reference Application Performance Tests Project Deliverables Time to Benefits Higher ROI 11
Slide 12: TXT Retail Competitive Position: Recognised Leader in the Target Markets
TXT Retail Competitive Position: Recognised Leader in the Target Markets Key Differentiators End-to End Planning Comprehensive & Complete Flexibility Omni-channel Ready – Change Proof Adoption 2 Hours!, thanks to Excel UI & Mobility Productivity Collaborative, Integrated & In-Memory Planners & Buyer
Slide 13: Commitment to Innovate: 5.1 m€ invested in Innovation
Committment to Innovate: 5.1 m€ invested in Innovation • Mobility: PLM & Planning on any device, • Scalability & Performance with In-memory anywhere Technology • Total Cost of Ownership: TXT On-Cloud and • Assortments based on Consumer Insight Cloud-based Managed Services 13
Slide 14: Fashion, Luxury & Specialty Retail: Large, Healthy & Transforming Market
Fashion, Luxury & Specialty Reatil: Large, Healthy & Transforming Market • Accounts for approx. 40% of the 18 Tr$ global Retail Industry, and is posted to grow at CAGR 4-5% • Retailers are among the top IT spenders • 1500 Target Companies (Tier-1 & Tier-2) across Europe, North America & APAC • Omni-
Slide 15: TXT Retail Growth Path: Strategy & Drivers
TXT Retail Growth Path: Strategy & Drivers Organic growth, targeted acquisitions, innovation in product & business process, self-financed through Profit & Cash generated by the business Geographical 2000-2012 2012-2015 2016 … Expansion Start-up APAC: European Leadership Start-up North America Glob
Slide 16: Aerospace, Automotive & Transport
Aerospace, Automotive & Transport 16
Slide 17: TXT Next: The Engineering Division of TXT Group
TXT Next: The “Engineering Division” of TXT Group Since 30 years Partner for our Clients to boost their Engineering Capabilities Target Markets Application Domains across the Value Chain of Clients AUTOMOTIVE & AEROSPACE HIGH TECH TRANSPORTATION CV CV CV 17
Slide 18: TXT Next: A Solid Foundation for Future Growth
TXT Next: A Solid Foundation for Future Growth An integrated set of «Lines of Business», sharing a common set of Methodologies, IT Technologies, Standards & Tools, but each: • Focused on a specific Market/Process • Self-sufficient in terms of both Sales & Delivery capability • With a well-defined «O
Slide 19: TXT Next: Growth Strategy & Drivers
TXT Next: Growth Strategy & Drivers Healthy & profitable growth, building on a baseline revenues stream from long-lasting relationships with core clients, and targeting International growth, both Organically & through Acquisitions. Geographic 2010-2015 2000-2010 2016 … Expansion «Follow my Custome
Slide 20: TXT Next: Changing Gears in International Development
TXT Next: Changing Gears in International Development 20
Slide 21: TXT Next: Changing Gears in International Development of Aviation Market
TXT Next: Changing Gears in International Development of Aviation Market • Add Leading Customers & a new segment of the Aviation Industry: Airlines • Add specialised know-how PACE’s Software Products • Add new Proprietary Software Products PACE’s Target Markets & Offering Footprint Pro-forma 2015 (M
Slide 22: TXT Next + PACE: Large Customer Base & Solid History
TXT Next + PACE: Large Customer Base & Solid History World-wide Customer Base of Industry Leaders OEMs – Fixed & Rotary Wings 1st Tier Suppliers Airlines Consulting & Research Labs for OEMs & 1st Tier Suppliers 360° Knowledge of the Aviation Industry after 25+ Years working with Leaders Civil & Defe
Slide 23: TXT Next + PACE: Coverage of the Entire Value Chain in Aviation Industry
TXT Next + PACE: Coverage of the Entire Value Chain in Aviation Industry 90% AIR TRANSPORT AIR TRANSPORT AUTOMOTIVE & of Business OEMs & 1st Tier Suppliers Airlines Other Hi-Tech Ind. CUSTOMER MARKETS PRODUCT TXT ROLE LIFECYCLE PRACTICES ON-BOARD We develop SOFTWARE R&D & Product Software that is De
Slide 24: TXT Next + PACE: Global Customers, Delivery Capability & Presence
TXT Next + PACE: Global Customers, Delivery Capability & Presence Selling Globally Delivering Globally TEAMS: • Milano (I) • Torino, Genova, Napoli (I) 70+ • • Berlin (D) Munich (D) 320+ Customers • Touluse (F) Consultants • Yeovil (UK) • Sassenheim (NL) • Seattle (USA) 24
Slide 25: TXT Next + PACE: Well Positioned to Capture a Major Market Opportunity
TXT Next + PACE: Well Positioned to Capture a Major Market Opportunity Aviation Industry: – Large, innovative & healthy Industry, capturing a big portion of global IT investments – Long-term positive trends, despite short-term fluctuations 25
Slide 26: TXT Next + PACE: Well Positioned to Capture a Major Market Opportunity
TXT Next + PACE: Well Positioned to Capture a Major Market Opportunity Aviation Industry: – Large & steadily growing R&D (Product Development & Engineering) investment Budgets: Sustained R&D Spending is not an option in our Target Industries – A growing portion of such Budgets externalised to highly
Slide 27: Summary & Financial Details
Summary & Financial Details Confidential & Proprietary 27 27
Slide 28: Management
Management Alvise Braga Illa – Chairman After graduating at the Polytechnic Institute in Milan, Mr Braga Illa was for 10 years in research and teaching at the Lincoln Laboratory and Massachusetts Institute of Technology, innovating in satellite technology, optical communication and network systems.
Slide 29: The Basis for Success
The Basis for Success • TXT Retail – Global Retail Industry is large, growing & dynamic: e-commerce, new business models, new players – Planning is a «big niche» & a growing investment area for Retailers – TXT has a unique offering and a solid competitive position, sustained by constant innovation –
Slide 30: Why Invest in TXT?
Why Invest in TXT? • International profile: >55% of Revenues from Int’l markets, and growing • Growth in Revenue, Profit & Cash • Large fidelised customer base of 350+ blue-chip customers: a key asset in good & bad times, hard to replicate for new competitors • Solid presence in large, healthy marke
Slide 31: 2015 – Growth of Revenues and development investments
2015 – Growth of Revenues and development investments 2014 2014 non Var % Var % vs 2014 € thousand 2015 % 2014 (1) Norm alized % recurring vs 2014 Norm alized (2) REVENUES 61.540 100,0 55.878 (1.468) 54.410 100,0 10,1 13,1 Direct costs 29.189 47,4 26.455 (407) 26.048 47,9 10,3 12,1 GROSS MARGIN 32.3
Slide 32: Strong Balance Structure
Strong Balance Structure € thousand 31.12.2015 31.12.2014 Var Intangible assets 14.692 15.079 (387) Tangible assets 1.361 1.249 112 Other fixed assets 2.079 1.692 387 Fixed Assets 18.132 18.020 112 Inventories 2.075 1.821 254 Trade receivables 25.032 18.571 6.461 Other short term assets 2.759 2.197
Slide 33: Dividends & Shareholder's Return in the last 5 Years
Dividends & Shareholder‘s Return in the last 5 Years •Share Price • Dividends •31.12.2010: 1.51€/share (rebased for free •2011: 1 € /share (extraordinary, rebased) share distribution) •2012: Free Share Distribution 1:1 •29.2.2016: 7.76€ /share •2013: 0.20 € /share (rebased) •2014: Free Share Distrib
Slide 34: TXT Market Capitalization (m€)
TXT Market Capitalization (m€) Free share distribution 1:10 Free share distribution 1:1 Free share distribution 1:1 Dividend 2.6m€ Dividend 2.6m€ Dividend 2.1m€ Dividend 10.3m€ 34
Slide 35: Shareholding Structure – December 2015
Shareholding Structure – December 2015 Management A. Braga Illa 7,9% 13,8% Market E-Business Consulting 42,4% 25,6% Treasury Shares 10,3% 35