Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — STAR Conference London 2014
23 slides from Txt E-solutions's conference presentation, Oct 3, 2014
Slide 1: TXT e-solutions – STAR Conference London
TXT e-solutions STAR Conference London – 3 October 2014
Slide 2: FY 2013 & H1 2014 Results
FY 2013 & H1 2014 Results FY 2013 (Actual) H1 2014 Revenues: 52,6 m€ (+13%) 29,0 m€ (+ 10,3%) of which 54% International 58% International EBIT 5 m€ (vs. 4,3 m€) 3.4 m€ Free Cash Flow 10% of Rev. 10% of Rev. NFP: 8,6 m€ 6,6 m€ (after ~5 m€ dividends & bonuses) Treasury Stock 1.368.120 shar
Slide 3: A strategy of growth & geographical expansion
A strategy of growth & geographical expansion • Profitable International Software Specialist • «First Mover» in Integrated End-to-End Retail for Fashion, Luxury & Specialty Profile • Multi-niches Positioning • International profile (>58% of revenues) • Large & fidelized customer base (350+ blu–chip
Slide 4: TXT Revenues & EBITDA
TXT Revenues & EBITDA (m€) CAGR +12% p.a. EBITDA Margin & Investment for Growth (R&D+Commercial) 40.3% 40.1% 39,5% 37,8% 33,7% CAGR +30% p.a. 4
Slide 5: TXT Perform – Major Growth & Profit opportunity for TXT Group
TXT Perform – Major Growth & Profit opportunity for TXT Group Strategy - Global leader in: Integrated Retail Planning solutions for Fashion, Luxury & Specialty Retailers: end-to-end, from collection to stores 5
Slide 6: A growing Customer Base of 350+ Clients in the Industry
A growing Customer Base of 350+ Clients in the Industry • Unique by quality & quantity Some of the New • Retail Planning expertise spanning across product categories & channels 2013-14 Clients Luxury Global Brands Fast Fashion Mixed Goods Luxury Global Brands Fast Fashion Mixed Goods
Slide 7: End-to-end Integrated Retail Planning: Top Priority in Retailers' Budgets
End-to-end Integrated Retail Planning: Top Priority in Retailers’ Budgets • Planning Processes are «THE» enabler to ongoing Industry transformation, ensuring consistency of decisions: – From Strategy to Execution – Across Functions – Across the extended Retailers’ organisation; • Planning Processes
Slide 8: TXT has a unique offering for Retail Planning: End-to-End Retail
TXT has a unique offering for Retail Planning: we call it “End-to-End Retail” • Depth: focused on core processes in Retail Planning, from strategy to operations • Breadth: sole vendor offering both Product Lifecycle Management & Retail Planning (end-to-end, from collection to stores and e-commerce)
Slide 9: A Major Opportunity: Why Now?
A Major Opportunity: Why Now? • Luxury, Fashion & Retail Brands: difficult future • Until now: a hodgepodge of fragmented technology • Now: Brands need Integrated End-to-End Retail, from Collection design to Stores Confidential & Proprietary 9
Slide 10: TXT Perform Competitive Position: Strong in the Target Markets
TXT Perform Competitive Position: Strong in the Target Markets Innovation leader in a static and obsolete competitive landscape, with high barriers to entry #1 in Core Functional Scope #3 Overall (Functionality & Market Presence) TXT Market share: ~ 15% in Europe ~ 5% “W-wide” Source: Management
Slide 11: Commitment to Innovate: 4,8 m€ in Product Development & Business Innovation
Commitment to Innovate: 4,8 m€ in Product Development & Business Innovation • Continue facilitating & speeding-up adoption – Usability & Scalability, leveraging on Global Technology Partnership – TXT On-Cloud – AgileFit deployment: • Expedite projects, starting from a robust starting point • Joint ‘
Slide 12: A Journey in our future
A Journey in our future • Baseline organic growth: – in Europe and North America – in the core market of global Luxury, Fashion & Specialty retailers • Accelerated through targeted acquisitions • Sustained by continuous investments in product and business process innovation • Self-financed, through:
Slide 13: Executing on the Strategy: Growth & Profit Drivers
Executing on the Strategy: Growth & Profit Drivers Grow 1. Extend Geography: short-/mid-term North America; in APAC now leveraging on our Customers’ presence, longer-term native APAC Retailers. 2. Expand to other Retail segments, in addition to Fashion & Luxury; longer-term sell to smaller Retailers
Slide 14: TXT Next – Current Priorities & Strategic Guidelines
TXT Next – Current Priorities & Strategic Guidelines Healthy (+12% in 2011-13) & profitable; opportunity to keep growing organically: • Around the «as-is» perimeter & preserving the current good margins • Building on a baseline revenue stream from solid, long-lasting relationships with core customer
Slide 15: TXT Next – Aerospace & High-Tech: seeding future growth opportunities
TXT Next – Aerospace & High-Tech: seeding future growth opportunities «Exploring» new domains, together with Customers Growing Int’l exposure, following our Customers
Slide 16: Why TXT should continue to succeed?
Why TXT should continue to succeed? • TXT Perform: Six Pillars of Profitable Growth – 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: end-to-end Integr
Slide 17: Why invest in TXT?
Why invest in TXT? • International profile: >58% 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 18: APPENDIX – FINANCIAL DETAILS
APPENDIX – FINANCIAL DETAILS
Slide 19: First Half 2014 highlights
First Half 2014 highlights Revenues: € 29.0 million (+10.3%) +4.7% net of non-recurring revenues of € 1.5m TXT Perform grew +8.1%, net of non-recurring revenues 58% of revenues from outside Italy. EBITDA: € 4.0 million (+28.2% compared to H1 2013). Almost flat, net of non-recurring reven
Slide 20: H1 2014 - Revenues' Growth & Investments
H1 2014 - Revenues’ Growth & Investments I SEM. 2013 € thousand I SEM. 2014 Var % Restated (*) % % REVENUES 28.972 100,0 26.265 100,0 10,3 Direct costs 13.464 46,5 12.394 47,2 8,6 GROSS MARGIN 15.508 53,5 13.871 52,8 11,8 Research and Development costs 2.380 8,2 2.559 9,7 (7,0) Commercial costs 5.66
Slide 21: Strong Balance Structure
Strong Balance Structure € thousand 30.6.2014 31.12.2013 Var Intangible assets 15.217 15.370 (153) Tangible assets 1.232 1.118 114 Other fixed assets 1.348 1.362 (14) Fixed Assets 17.797 17.850 (53) Inventories 2.409 1.451 958 Trade receivables 19.155 16.840 2.315 Other short term assets 3.404 1.802
Slide 22: Dividends & Shareholder's Return in the last Years
Dividends & Shareholder‘s Return in the last 4 Years • 2011: 1 € /share (extraordinary, rebased) • 2012: Free Share Distribution 1:1 Dividends • 2013: 0,20 € /share (rebased) • 2014: Free Share Distribution 1:1 • 2014: 0,25 € / share • 31.12.2010: 1.66€/share (rebased for free Share share distributi
Slide 23: Shareholding Structure 30.6.2014
Shareholding Structure 30.6.2014 Management A. Braga Illa 8,3% 13,1% Market E-Business Consulting 42,2% 25,2% Treasury Shares 11,2% 23