Slide 1: 2013 Annual Results
2013 Annual Results Christophe Fabre Chief Executive Officer © 2014 Axway | Confidential 1
Slide 2: Forward looking statements
Forward looking statements • This presentation contains forecasts in respect of which there are risks and uncertainties concerning the company’s future growth and profitability. The group highlights the fact that the signature of licence contracts, which often represent investments for clients, are
Slide 3: Contents
Contents • 2013 Analysis • Accounting & Financial Results • Positioning & Strategy • Q&A © 2014 Axway | Confidential 3
Slide 4: 2013 Analysis
2013 Analysis © 2014 Axway | Confidential 4
Slide 5: 2013 in a nutshell
2013 in a nutshell • Numbers in line with our initial guidance despite low Q4 • Axway 5 Suite deployment well received by the market • API technology integrated following Vordel acquisition confirms the traction from the market • 4th Quarter: new strategic componants launched on MFT and B2B • Market
Slide 6: FY2013: revenue by region
FY2013: revenue by region Exercise 2013 2012 2012 Total Organic [M€] 2013 Published Pro forma Growth Growth1 France 82.5 75.4 76.2 9.4% 8.4% Rest of Europe 57.6 55.6 58.4 3.6% -1.4% America's 90.7 86.5 87.8 4.8% 3.3% Asia/Pacific 6.7 6.8 6.6 -0.6% 2.0% Axway 237.5 224.3 229.0 5.9% 3.7% (1) At consta
Slide 7: FY2013: revenue by business line
FY2013: revenue by business line Exercise 2013 2012 2012 Total Organic [M€] 2013 Published Pro forma Growth Growth1 Licenses 75.6 71.4 75.4 5.8% 0.3% Maintenance 106.3 98.2 98.2 8.3% 8.2% Services 55.6 54.7 55.4 1.7% 0.4% Axway 237.5 224.3 229.0 5.9% 3.7% (1) At constant exchange rates and on a like
Slide 8: Q4 2013: revenue by region
Q4 2013: revenue by region 4th Quarter 2012 2012 Total Organic [M€] 2013 Published Pro forma Growth Growth1 France 27.3 26.2 26.5 4.2% 2.9% Rest of Europe 17.7 18.8 18.8 -6.0% -5.8% America's 24.2 27.7 27.0 -12.4% -10.3% Asia/Pacific 1.9 2.5 2.4 -22.9% -19.2% Axway 71.2 75.2 74.7 -5.4% -4.8% (1) At
Slide 9: Q4 2013: revenue by business line
Q4 2013: revenue by business line 4th Quarter 2012 2012 Total Organic [M€] 2013 Published Pro forma Growth Growth1 Licenses 28.5 34.3 34.1 -17,0% -16.7% Maintenance 27.4 26.2 25.5 4.5% 7.3% Services 15.4 14.8 15.0 3.7% 2.3% Axway 71.2 75.2 74.7 -5.4% -4.8% (1) At constant exchange rates and on a lik
Slide 10: Axway: a balanced business model
Axway: a balanced business model FY2013 BY REGION BY ACTIVITY Asia Pacific France Licenses Services 3% 35% 32% 23% 38% 24% 45% Rest of America Europe Maintenance © 2014 Axway | Confidential 10
Slide 11: B2B Modernization: Automotive leader
B2B Modernization: Automotive leader • The second largest automotive manufacturer Governing the Flow of Data in North America continues to deliver profitable growth, through automotive sales and financial serveries products. • They reign as America’s best-selling vehicle brand in 2013 for a fourth c
Slide 12: Visibility into Partner Community
Visibility into Partner Community Financial Information Provider • This global financial information institution is Governing the Flow of Data the world's leading source of commercial information and insight on businesses, enabling companies to Decide with Confidence for more than 172 years. Today,
Slide 13: Secure Partner On-Boarding and Internal MFT Governance
Secure Partner On-Boarding and Internal MFT Governance • This global life insurance company has 5000 Governing the Flow of Data employees and network of over 3,000 financial representatives in more than 80 agencies nationwide. • Axway solution provides a single, secure entrance into their company fo
Slide 14: B2B Modernization to meet demands from Growth and Partner On-boarding
B2B Modernization to meet demands from Growth and Partner On-boarding • Since 1986, This prescription benefits Governing the Flow of Data company has been managing benefits for tens of millions of Americans on behalf of thousands of clients including health plans and plan sponsors. They have a team
Slide 15: Mobile Strategy in Insurance company
Mobile Strategy in Insurance company • A major player in the Insurance domain in Governing the Flow of Data France • Challenge: 30% increase of the turnover over 3 years & Business Development with Partners in new insurance sectors: – Secure the web services exposed to partners – Improve the industr
Slide 16: Easy Integration of Partners, New Services & Customers
Easy Integration of Partners, New Services & Customers • Australian telecommunications and media Governing the Flow of Data company • Challenge: – Complex Infrastructure with big issues to integrate New Services – Facilitate integration, performance, governance and security in order to provide to pa
Slide 17: Mobile Enablement
Mobile Enablement • One of the largest pharmaceutical companies Governing the Flow of Data in the world. • Challenge: to open various applications and data (HR, Commercial, Research and Enterprise domains) to their employees everywhere in the world, including sales teams for whom the only tool is th
Slide 18: B2B modernization
B2B modernization • Wines & Spirits subsidiary of a World leader Governing the Flow of Data in luxury (60 prestigious brands, 2400 stores & 84 000 employees worldwide. • Challenge: to find a state of the art EDI solution covering all the usual functionalities + The platform needs to run in 24/7 mode
Slide 19: Govern the Data Flow Consistency
Govern the Data Flow Consistency • World's largest bank in terms of assets and Governing the Flow of Data sixth-largest public company ( Forbes ) • Challenge: – Supervise 7 Finance applications so as to ensure timely reportings for various needs (e.g. Closing and Risk consistency). 2 of the applicat
Slide 20: License Metrics 2013
License Metrics 2013 ASP – Share of Indirect – New/Repeat • Nb Deals ~ 2401 • Share of Tiers 1 business(>250k€) – Share of nb. of deals: 2% – Share of total amount = 35% 2013 • Share of indirect business (€) = 10% versus 2012 • Share of New business (€) = 8% • Average Sale Price – ASP Tiers 1 ~568k€
Slide 21: License Metrics 2013
License Metrics 2013 Share of verticals in License revenues SECTORS HEALTHCARE vs 2012 Others FSI SUPPLY CHAIN vs 2012 Public PUBLIC SECTOR Sector vs 2012 FSI Healthcare Supply Chain vs 2012 © 2014 Axway | Confidential 21
Slide 22: Maintenance Metrics 2013
Maintenance Metrics 2013 • Total Value/ Contribution ~ 106M€/45% • Attachement rate = 19.4% 2013 (average weighted by volume) versus 2012 • Renewal rate (*) = 93% (average weighted by volume) * This percentage represents full year revenue impact © 2014 Axway | Confidential 22
Slide 23: Headcount at December 2013: 1783
Headcount at 31 December 2013: 1783 © 2014 Axway | Confidential 23
Slide 24: 2013: cost analysis
2013: cost analysis In thousands of euros FY 2013 FY 2012 FY 2011 Revenue : License 75,583 71,435 77,762 Maintenance 106,348 98,205 85,037 Total Product Revenue 181,931 169,640 162,799 Services 55,613 54,680 54,445 Total Revenue : 237,544 224,320 217,244 Costs of sales: Product Revenue 20,721 20,653
Slide 25: Accounting & Financials Results
Accounting & Financials Results Patrick Donovan, Chief Financial Officer © 2014 Axway | Confidential 25
Slide 26: Income Statement (1/2)
Income Statement (1/2) In thousands of euros FY 2013 FY 2012 FY 2011 Revenue : License 75,583 71,435 77,762 Maintenance 106,348 98,205 85,037 Total Product Revenue 181,931 169,640 162,799 Services 55,613 54,680 54,445 Total Revenue : 237,544 224,320 217,244 Costs of sales: Product Revenue 20,721 20,
Slide 27: Income Statement (2/2)
Income Statement (2/2) In thousands of euros FY 2013 FY 2012 FY 2011 Profit on operating activities 37,468 34,966 35,303 as a % of Revenue 15.8% 15.6% 16.3% Stock option related expenses (1,352) (1,147) (146) Amortization of intangible assets (3,679) (2,130) (1,858) Profit from recurring operations
Slide 28: Simplified Balance Sheet (1/2)
Simplified Balance Sheet (1/2) In millions of euros 31/12/2013 31/12/2012 31/12/2011 ASSETS Goodwill 189.3 196.6 169.6 Intangible assets 28.8 31.0 19.4 Property, plant and equipment 6.3 6.2 4.9 Other non-current assets 31.5 18.5 15.3 Non-current assets 255.9 252.3 209.2 Trade receivables 64.4 72.2 5
Slide 29: Simplified Balance Sheet (2/2)
Simplified Balance Sheet (2/2) In millions of euros 31/12/2013 31/12/2012 31/12/2011 SHAREHOLDERS' EQUITY AND LIABILITIES Share capital 40.9 40.6 40.3 Capital reserves and results 217.4 193.3 173.1 Total shareholders' equity 258.4 233.9 213.4 Financial debt - long-term portion 28.5 36.9 2.0 Other no
Slide 30: Change in Equity
Change in Equity In millions of euros 31/12/2013 31/12/2012 31/12/2011 Equity at Opening of Period 233.9 213.4 148.1 Profit for the period 35.6 24.7 21.5 Share-based payments 1.3 1.1 0.1 Treasury Shares 0.0 -0.1 -0.6 Dividends -7.1 -5.0 -21.8 Capital increase 2.2 2.1 61.2 Actuarial gains and losses
Slide 31: Cash Flow Statement
Cash Flow Statement In millions of euros FY 2013 FY 2012 FY 2011 Net profit for the period 35.6 24.7 21.5 Net charges to amortizations, depreciations and provisions 8.0 5.8 4.4 Other income and expense items 1.7 0.6 0.3 Cash from operations after cost of net debt and tax 45.3 31.1 26.2 Changes to op
Slide 32: Financial Structure – Covenants 2013
Financial Structure – Covenants 2013 31/12/2011 31/12/2012 31/12/2013 31/12/2011 31/12/2012 31/12/2013 Net Debt/EBE R1<3 Net Debt/Equity R3<1 EBE/Cost of net financial debt R2>5 • All bank covenants clearly met © 2014 Axway | Confidential 32
Slide 33: No change on Axway shareholder structure
No change on Axway shareholder structure 31/12/2013 20,465,177 SHARES OUTSTANDING Sopra Pasquier Odin Sopra Geninfo Treasury Managers Caravelle Public Group Family Family GMT (SG Group) Shares 25.7% 0.1% 1.2% 2.5% 21.4% 8.8% 12.6% 27.6% 0.1% Pact of Shareholders (59.7%) © 2014 Axway | Confidential 3
Slide 34: Positioning and strategy
Positioning and strategy Christophe Fabre, Chief Executive Officer © 2014 Axway | Confidential 34
Slide 35: Global growth
Global growth Growth forecast Japan 2013: 1.8% 2014: 1.5% Growth forecast Emerging economies China 2013: 7.7% United States Euro area 2014: 8.2% 2013: 1.7% 2013: -0.4% 2014: 2.9% 2014: 1.0% Russian Federation 2013: 1.5% 2014: 2.3% 2011 2012 2013 2014 2015 India France 2.0 0.0 0.2 1.0 1.6 2013: 3.0%
Slide 36: Middleware spending Worldwide
Middleware spending Worldwide • The Gartner «Forecast: Enterprise Software Markets, Worldwide, 2010-2017 4Q13 Update», estimated enterprise application infrastructure and middleware software revenues at 21.3Md$ in 2013. This segment should target 28.6Md$ in 2017 CAGR = 7.5% Source: Gartner, Forecast
Slide 37: Evolution of the adaptable enterprise
Evolution of the adaptable enterprise “Nimble and secure. The pace of digital disruption makes the future less predictable, and this unpredictability requires a different type of application and infrastructure architecture — one that can rapidly adapt to changing needs, variable scale, and different
Slide 38: Market segment: Integration Middleware
Market segment: Integration Middleware A A A Integration Middleware A A A A © 2014 Axway | Confidential 38
Slide 39: Market: segmentation from a technology viewpoint
Market: segmentation from a technology viewpoint A A A BPM / BAM Data Application Integration Integration MFT Integration Integration Brokerage (ETL, MDM, …) (ESB, MOM, …) B2B (VAN ), iPaaS Middleware SOA Governance / API Management A A A A © 2014 Axway | Confidential 39
Slide 40: Axway differentiated market positioning
Axway differentiated market positioning A A A BPM / BAM Internal Data Application Integration Integration Edge MFT Outsourced Brokerage Integration Integration Integration (ETL, MDM, …) (ESB, MOM, …) B2B Integration Integration (VAN..), iPaaS Middleware SOA Governance / API Management A A A A © 2014
Slide 41: B2B, Cloud, Mobile, Social: business interactions are exploding
B2B, Cloud, Mobile, Social: business interactions are exploding By 2016, integration on mobile devices will represent 20% of all Mobile integration spending Cloud APP By 2017, over two-thirds of all ... will extend outside the new integration flows ... enterprise firewall APP APP Social By 2016, com
Slide 42: Govern the Flow of Data
Govern the Flow of Data Axway 5 Suite (Launched in February 2013) Mobile Cloud Apps Cloud Infrastructure Governance SLA/Analytics Community Mgt Policies Security Integration Human …. Partner Interactions Communities © 2014 Axway | Confidential 42
Slide 43: Axway Positioned as a Leader in Two Gartner Magic Quadrants
Axway Positioned as a Leader in Two Gartner Magic Quadrants On-Premises Application Integration Suites Magic Quadrant Application Services Governance Magic Quadrant Gartner “Magic Quadrant for On-Premise Application Integration Suites” by Jess Thompson, Yefim V. Natis, Massimo Pezzini, Daniel Sholle
Slide 44: Axway's competitive landscape
Axway‘s competitive landscape Cyclone Specialists Tumbleweed Generalists IDS Scheer Vordel Metismo Ilog Terracota Lombardi My-channels Sterling Commerce Apama Govern the Flow of Data CastIron Alfabet Process Aspera Metaquark excellence Smarter planet LongJump BEA Data Synapse Sun (Seebyond) Proginet
Slide 45: Axway confirms his project
Axway confirms his project • Digital economy opportunity • Governing the flow of data • Axway5 business opportunities • Vision adapted, in line with the $500M project Source: Gartner, “IT Spending Forecast, 4Q13 Update: What Will Grab Headlines in • New acquisitions to 2014?” webinar, John-David Lov
Slide 46: We confirm the project
We confirm the project • Economic resilience in an unfavourable environment • Vision adapted, in line with the $500M project – Governing the Flow of Data • New offering for a broader market reach – Offering: Axway 5 Suite – Acquisition of Vordel • Strengthened operating structure © 2014 Axwa
Slide 47: Adapt to achieve the $500 million project
Adapt to achieve the $500 million project Conversion rate at 1.35 © 2014 Axway | Confidential 47
Slide 48: Outlook for 2014
Outlook for 2014 • Slow economic environment • IT context is evolving • Axway continues its transformation – Leveraging Digitalization and improving operational efficiency − API, Governance and Cloud as new foundation – Possible new acquisitions − Develop Axway Suite − Develop the network and the cl
Slide 49: It's time for Q & A
It’s time for Q & A 11,000+ 1,783+ 237.5M€ Governing Flow customers employees of data 15.8% margin 19 locations in the World Headquarters in US, listed (AXW. PA) and registered in France © 2014 Axway | Confidential 49
Slide 50: Thank you, Q&A
Thank you, Q&A http://www.finance.axway.com/ © 2014 Axway | Confidential 50