Slide 1: TXT e-solutions Corporate Presentation – Star Conference 2014
TXT e-solutions CORPORATE PRESENTATION Star Conference 2014 March 2014
Slide 2: A bit of History
A bit of History • Founded many years ago by A.Braga Illa • A healthy but very small «Italy-only» System Integrator until 2000. • July 2000: IPO (Borsa Italiana) with IPO Market Cap 200 m€ (!), and a Project: – From «system integrator» to «software vendor» – From «Italian» to «International» After
Slide 3: Key Investments & Shareholder's Return in the last 2 Years
Key Investments & Shareholder‘s Return in the last 2 Years • Acquisitions: Maple Lake in September 2012 (8,8 m€ Cash + 1,5 m€ Shares) • New Products in the «TXTPerform Solution Collection»: – TXT On-Cloud; – TXT Mobile; – Mobile PLM & Planning modules • Yearly Dividends distributed since 2011: – 201
Slide 4: FY 2013 - Results
FY 2013 - Results Revenues: 52,6m€ (+13% vs. 2012) of which 54% International EBIT from Operations: 5 m€ (vs. 4,3 m€ in 2012) Free Cash Flow 10% of Revenues NFP: 8,6 m€ (vs. 6,0 m€ on 31/12/2012) Treasury Stocks 1.368.120 shares (avg. purchase price 2,61 €/share) 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: Fashion, Luxury & Specialty Retail: Large & Transforming Industry
Fashion, Luxury & Specialty Retail: Large & Transforming Industry • 80% of Retailers are based in Western EU & North America and operate World-wide: ~1.000 mid-large (> 300 m€) targets; APAC is growing faster, local players are still immature • Retailers are big IT spenders (>10% of the Global IT In
Slide 7: A growing Customer Base of 350+ Clients in the Industry
A growing Customer Base of 350+ Clients in the Industry • Unique by quality & quantity • Retail Planning expertise spanning across product categories & channels
Slide 8: 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 9: TXT has a unique offering for Retail Planning
TXT has a unique offering for Retail Planning • Depth: focused on core processes in Retail Planning • Breadth: sole vendor offering both Product Lifecycle Management & Retail Planning (end-to-end, from collection to stores and e-commerce) • Modular & Integrated: customers can start small & scale up
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+ m€ invested, 3 new Product launches in 2013
Committment to Innovate: 4+ m€ invested, 3 new Product launches in 2013 • TXT focuses on «business innovation», building on technology from IT leaders: Global Partnership with - “Best practices inside”, deep functionality & integration, high usability & scalability - TXT On-Cloud: lower cost barrier
Slide 12: What's Next in our Journey
What’s Next in our Journey • 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, throu
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 Model-based Design for Embedded SW Augumented Reality for Simulation & Training Followed our Customers in 24 Countries worldwide Tabl
Slide 16: Why TXT could Outperform
Why TXT could Outperform • TXT Perform: Six Pillars of Profitable Growth – Global Retail Industry is large, dynamic and changing: 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 Integrated Ret
Slide 17: Why invest in TXT now?
Why invest in TXT now? • International profile: 50+% 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 m
Slide 18: Appendix – Financial Details
APPENDIX – FINANCIAL DETAILS
Slide 19: 2013 - Revenues' Growth & Investments
2013 - Revenues’ Growth & Investments € thousand 2013 2012 Var % % % REVENUES 52.560 100,0 46.499 100,0 13,0 In 2013: Direct costs 24.854 47,3 22.351 48,1 11,2 Revenues grew +13.0% GROSS MARGIN 27.706 52,7 24.148 51,9 14,7 (+20.1% TXT Perform) and Research and Development costs 4.761 9,1 4.091 8,8
Slide 20: Strong Balance Structure
Strong Balance Structure 31.12.2012 € thousand 31.12.2013 Var Restated(*) Intangible assets 15.370 16.621 (1.251) Tangible assets 1.118 1.154 (36) Other fixed assets 1.362 795 567 Fixed Assets 17.850 18.570 (720) Inventories 1.451 1.388 63 Trade receivables 16.840 17.274 (434) Other short term asset
Slide 21: Shareholding Structure 31.12.2013
Shareholding Structure 31.12.2013 21
Slide 22: 2012-2014: Strong Stock Performance
2012-2014: Strong Stock Performance 22