Slide 1: TXT e-Solutions: Cloud Managed Services in the Business Plans
TXT e-Solutions Alla frontiera dell’innovazione: Cloud Managed Services nel Business Plan di TXT Retail e di TXT Next Borsa Italiana – April 2016
Slide 2: FY 2015 Results
FY 2015 Results FY 2015 5 years CAGR +11% p.a. Revenues: 61.5 m€ (+13.1%) Net Income (Norm.) 3.9 m€ (+17.4%) Free Cash Flow 8.4% of Rev. NFP: 8.3 m€ 2
Slide 3: The TXT Opportunity
The TXT Opportunity Fashion, Luxury & Specialty Retail Aerospace, Automotive & Transport • 200+ Global Aerospace & Aviation large • 1.000+ Tier 1 and Tier 2 Companies Groups; World-wide; • 200+ Automotive & Rail global Tier-1 • 2.500+ Tier 3 • «Digital Transformation» of the Retail 40% • A consolida
Slide 4: Aerospace & Aviation 5-Years Strategy
Aerospace & Aviation 5-Years Strategy 4
Slide 5: TXT Next: Changing Gears in International Development
TXT Next: Changing Gears in International Development 5
Slide 6: TXT Next + Pace: Well Positioned to Capture the Market Opportunity
TXT Next + Pace: Well Positioned to Capture the Market Opportunity 25+ Years Working with Industry Leaders World-wide OEMs – Fixed & Rotary Wings 1st Tier Suppliers & MROs Airlines & Lessors Academia & Research 6
Slide 7: TXT Next + Pace: Well Positioned to Capture the Market Opportunity
TXT Next + Pace: Well Positioned to Capture the Market Opportunity Deep Knowledge of the Aerospace & Aviation Industry, spanning the entire Product Life-cycle Inside our Customers’ PRODUCTS Inside our Customers’ CORE PROCESSES AIRBORNE FLIGHT DESIGN & DIGITAL MARKETING & OPERATIONS SOFTWARE SIMULATI
Slide 8: TXT Next + Pace: Well Positioned to Capture the Market Opportunity
TXT Next + Pace: Well Positioned to Capture the Market Opportunity Selling Globally Delivering Globally TEAMS: • Milano (I) • Torino, Genova (I) 70+ • Berlin (D) 300+ • Munich (D) Customers • Touluse (F) Engineers • Yeovil (UK) • Sassenheim (NL) • Seattle (USA) 8
Slide 9: TXT Next 5-years Strategic Plan: Accelerate International Growth
TXT Next 5-years Strategic Plan: Accelerate International Growth … • … as «Engineering Solution» Partner, leveraging the «People + IP» paradigm: • Time To Market BENEFIT TO • Cross-industry Fertilization • Increased Efficiency THE CLIENTS • Cost Competitiveness • Reusability / Productivity BENEFIT T
Slide 10: TXT Next 5-years Strategic Plan: Investing in innovative Software Products
TXT Next 5-years Strategic Plan: Accelerate International Growth … • … Investing in innovative Software Products: Airborne Software, Simulation & Operations Support Design, Marketing & Operations Support Digital Manufacturing PACE TXT Next 10
Slide 11: TXT Next 5-years Strategic Plan: Cloud-based Managed Services
TXT Next 5-years Strategic Plan: Accelerate International Growth … • … investing in innovative Cloud-based models to deliver Solutions & Managed Services; Some examples … Managed Services for Centralized Management Managed Services for Cloud- based post-flight analysis of Managed Service for Softwar
Slide 12: Fashion, Luxury & Specialty Retail 5-Years Strategy
Fashion, Luxury & Specialty Retail 5-Years Strategy
Slide 13: TXT Retail Target Processes: The Merchandise Lifecycle
TXT Retail Target Processes: The «Merchandise Lifecycle» How Industry Transformation impacts Omnichannel Retailers’ Key Business Processes? The Omnichannel Retailers’ «Merchandise Lifecycle»: A strategic & complex End-to-End process that involves many actors that real-time collaborate to generate gr
Slide 14: TXT Retail: Unique Customer Base of 350+ Luxury Global Brands
TXT Retail: Unique Customer Base of 350+ - 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
Slide 15: TXT Retail: Focused on the End-to-End Merchandise Lifecycle
TXT Retail: Focused on the End-to-End Merchandise Lifecycle 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 produ
Slide 16: TXT Retail: Well Positioned to Capture the Global Market Opportunity
TXT Retail: Well Positioned to Capture the Global Market Opportunity Services Software 57% 43% Spain 2% North Am. Italy 16% 11% APAC Germany 8% 21% UK & Nordics 21% France 21%
Slide 17: TXT Retail 5-years Strategic Plan: Global Leadership
TXT Retail 5-years Strategic Plan: Global Leadership Execution • Geography: Global Leadership – Consolidate Europe – Expand in North America – Start-up Asia-Pacific • Industry: from mainly Lower Tier-1 and Upper Tier- 2, Fashion & Luxury, to: – A growing range of Retail Segments – Super Tier 1 and L
Slide 18: TXT Retail Strategy Pillars: Leading-edge Technology
TXT Retail Strategy Pillars: Leading-edge Technology 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
Slide 19: TXT Retail Strategy Pillars: AgileFit - Business Best Practices Ready to Go
TXT Retail Strategy Pillars: AgileFit - Business Best Practices «Ready to Go» Mitigate Solution Design Workbook Design Interface Specification Project Risk Reduce Project Costs Reference Application Performance Tests Project Deliverables Faster Time to Benefits Higher ROI 22
Slide 20: TXT Retail Strategy Pillars: Cloud-based Solutions & Services
TXT Retail Strategy Pillars: Cloud-based Solutions & Services • Extend Value Proposition to include Cloud-based Managed Services and Merchandise Lifecycle Management Cloud Services (SAAS) • This reduces TCO of TXT Retail & strengthens TXT Retail’s position as “Transformational Enabler” for its Custo
Slide 21: Merchandise Lifecycle Management Cloud Strategy
TXT Retail Strategy Pillars: Cloud-based Solutions & Services Merchandise Lifecycle Management Cloud Strategy Industry Segment Fashion, Luxury and Apparel Solution Areas Potential Collection Store Merchandise Assortment Customer N. of Target Revenue Supply Chain Cloud Strategy Lifecycle Forecasting
Slide 22: TXT Retail Strategy Pillars: The Customer Dimension
TXT Retail Strategy Pillars: The Customer Dimension TXT Retail Sales Budgeting: Multi-Channel Sales Budget • Partnerships, e.g. FirstInsight for Consumer Collaboration on Product Evaluation • Customer Projects, e.g. Starboard to drive better Assortments using Consumer Demographic Information • Custo
Slide 23: TXT Retail 5-years Global Leadership Goal
TXT Retail 5-years Global Leadership Goal REVENUE BY INDUSTRY SEGMENT REVENUE BY CUSTOMER TIER REVENUE BY REGION Department Store/Travel Luxury Tier 3 Retail UK&Nordics APAC Brand Tier 1 North America Specialty Others Tier 2 Specialty Continental Fashion Europe 23
Slide 24: TXT Retail: The End-to-End Merchandise Lifecycle Opportunity
TXT Retail: The End-to-End Merchandise Lifecycle Opportunity Competitive Differentiation and Enablers for Customer Success IT SPEND FOR MERCHANDISE LIFECYCLE IT SPEND BY TYPE OF SOLUTIONS TXT Gain Expand Packaged 10% Marketshare Solutions Market 300M$ ERP Extensions, Custom, Maintenance of Obsolete
Slide 25: Summary & Financial Details
Summary & Financial Details Confidential & Proprietary 25
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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€ 32
Slide 33: 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% 33