Txt E-solutions S.p.a. · MIL:TXT

Txt E-solutions — Investor Presentation (October 2013)

22 slides from Txt E-solutions's investor presentation, October 2013

  1. Slide 1: TXT e-solutions Corporate Presentation

    TXT e-solutions CORPORATE PRESENTATION October 2013 March 26, 2013 Confidential and Proprietary 1

  2. Slide 2: TXT – A bit of history

    TXT – A bit of history  Founded by A.Braga Illa in late ‘80s  A healthy, small «Italian» System Integrator until 2000.  July 2000: IPO (Italian Stock Exchange) with a Project: • From «system integrator» to «software vendor» • From «Italian» to «International»  After 13 years: no longer «Italian»

  3. Slide 3: 2012: Growing & Profitable

    2012: Growing & Profitable 40% End-to-end Integrated Planning 60% Advanced Software for Fashion, Luxury system integration and Specialty Retailers & IT services € million 2011 2012 Var% REVENUES 40,1 46,5 15,8 - TXT Perform 22,1 26,4 19,4 - TXT Next 18,1 20,1 11,5 EBITDA 4,4 5,3 21,0 EBIT 0,9 4,2 38

  4. Slide 4: TXT Perform – International Presence

    TXT Perform – International Presence Licenses 20% Services Mainten 57% ances 22% Other Int'l Italy 6% 15% North America 21% France 18% Germany Spain 15% 3% UK 22% 4

  5. Slide 5: Key drivers of our successes

    Key drivers of our successes  Focused Go-To-Market: Fashion, Luxury & Specialty Retail • Tier-1 / Upper Tier-2 • Larger deals & recurrent revenues streams • Complex problems & «mature» clients: higher prices  Footprint: End-to-end Integrated Planning • Customers’ planning core processes • Broader

  6. Slide 6: 350+ Customer Base, constantly growing

    350+ Customer Base, constantly growing: Many new clients each year; one new “go-live” each week Retail Planning Expertise across Product Categories & Channels LUXURY BRANDS FAST FASHION MULTI CATEGORY 6

  7. Slide 7: End-to-end Integrated Planning: Breadth & Depth

    End-to-end Integrated Planning: Breadth & Depth Sole Vendor offering Planning AND PLM for Retailers Product Lifecycle End-to-end Management Integrated Planning 100% Consistency across Business Strategy, Products & Operations 7

  8. Slide 8: Key Benefits of End-to-end Integrated Planning

    Key Benefits of End-to-end Integrated Planning $ Increase Sales Grow Margins Reduce Inventories Improve Productivity & Invested Capital • Better products & better • Less time crunching data , assortments: right product, • Improve sell-through by • Smarter distribution first more time analyzing. righ

  9. Slide 9: Benefits measured by some of our Clients

    Benefits measured by some of our Clients  One of the largest retailers world-wide:  8% sales increase  20 days reduction of inventories  A French specialty retailer with 450 stores:  Increased best sellers availability in stores from 65% to 94%.  Best sellers further drive increase of store vi

  10. Slide 10: From European to Global leadership: A Large, Growing Market Opportunity

    From European to Global leadership A Large, Growing Market Opportunity  End-to-end Integrated Planning  Retail Industry growing at +4-5% p.a. • A Large Market: 300+ m€ Licences  Tier-1 / Tier-2 Specialty Retailers: • 5% CAGR in next few years • Europe ~ 500 • Fragmented: specialised / niche • Nor

  11. Slide 11: From European to Global leadership: A Strategic Opportunity

    From European to Global leadership A Strategic Opportunity  TXT opportunity: an «empty space» in the Market for a mid-sized (50100 m€), Highly Specialized, yet Global & Self-financed • Few, very large (>500 M$), global but generalist players • Small (<20 M$), specialised, but local/regional player

  12. Slide 12: From European to Global leadership: Where we are

    From European to Global leadership Where we are  A strong market position  Highly specialised Retail Planning software vendor  Innovative  Global: presence in both Europe & North Am. (together 80% of the market)  Sound Financial structure • A leading Retail Planning practice  The largest group

  13. Slide 13: Int'l leadership recognised by Market Analysts

    Int’l leadership recognised by Market Analysts # 1 in Functionality Fashion, Luxury & Retail TXT Market share in core markets: #1 in Core Functional Scope  ~ 15% in Europe #3 Overall (Functionality & Market Presence)  ~ 5% “W-wide” 13

  14. Slide 14: What's next in our Journey

    From European to Global leadership What’s next in our Journey  Baseline organic growth: • in Europe & North America • in the core market of global Luxury, Fashion & Specialty retailers  Accelerated through targeted acquisitions  Enabled by: • Highly competitive software Products, • A strong, expe

  15. Slide 15: TXT Next

    TXT Next Leader in Aerospace & High-Tech Manufacturing  Since 25 years:  Deep domain knowledge  Senior, experienced team  Consistently growing & generating cash, year after year  30+ blue-chip customers, International leaders in their business Examples  On-Board SW & Flight Simul.: since 1985

  16. Slide 16: TXT Next - Banking & Finance: a niche player

    TXT Next - Banking & Finance: a niche player  Target Market: Italy Analysis & Design 15% • Mid-Large Banks • On-line Banks Application • Financial Institutions IT Quality & Maintenanc Governance e 60% 25% Technologic al Services Main focus: IT & Testing quality & Software Governance Develop. Some C

  17. Slide 17: Why invest in TXT?

    Why invest in TXT ?  International profile: • 50+% of Revenues from Int’l Markets • 90% of Revenues from Customers international leaders in their businesses  Strong Revenues, Profit & Cash growth in 2011, 2012 & 2013  Large fidelised customer base of 300+ blue-chip fashion & luxury retailers: a k

  18. Slide 18: Appendix: Financial Details

    Appendix Financial Details 18

  19. Slide 19: H1 2013 Revenues growth & investments

    H1 2013 Revenues growth & investments I Half 2013 % I Half 2012 % Var 13/12% € thousand In H1 2013: REVENUES 26.265 100,0 23.454 100,0 12,0  Revenues grow +12.0% (+20.1% Direct costs 12.394 47,2 11.181 47,7 10,8 TXT Perform) and GROSS MARGIN 13.871 52,8 12.273 52,3 13,0 international revenues stand

  20. Slide 20: Strong balance structure

    Strong balance structure 30/06/2013 31/12/2012 Var. € thousand Intangible assets 18.996 19.866 (870) Tangible assets 1.210 1.154 56 Other fixed assets 767 795 (28) Fixed Assets 20.973 21.815 (842) Inventories 1.669 1.388 281 Trade receivables 16.516 17.274 (758) Other short term assets 2.252 2.288 (

  21. Slide 21: Shareholding Structure

    Shareholding Structure  Support of Treasury Manageme A. Braga nt Stock Purchase Plan, Illa 11,2% 13,5% authorised up to 20% Market E-Business 37,7% Consulting  Dividend 2012 (0,40€ 26,4% /share): Treasury • 30% of Net Income Shares 11,2% from operations • 100% of Non Recurring Income 21

  22. Slide 22: 2012-2013: Strong Stock Performance

    2012-2013: Strong Stock Performance 14 250.000 2013 Performance +101% 2012 Performance +46% 12 200.000 10 150.000 Daily Volumes 8 TXT Price € 6 100.000 4 50.000 2 0 0 Daily Volumes TXT Price € FTSE MIB Index 22

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