74software · EURONEXT:74SW
74software — Axway Software — Merger or Acquisition (July 2024)
28 slides from 74software's merger presentation, Jul 31, 2024
Slide 1: Sopra Banking Software SBS Acquisition Project
Sopra Banking Software “SBS” Acquisition Project DISCLAIMER: This document may not be published, forwarded or distributed, directly or indirectly, in the United States of America, Canada, Australia or Japan. This document does not constitute a public offer, an offer to purchase or an intention to so
Slide 2: Prospectus and forward-looking statements
Prospectus: Copies of the French language prospectus which was prepared for purposes of the public offering in France (and in France only) (the “Prospectus”), which received an approval from the French financial markets authority (the Autorité des marchés financiers – the “AMF”) on July 22, 2024, un
Slide 3: Disclaimer
Disclaimer: This document does not constitute an offer to sell or the solicitation of an offer to buy the securities of Axway Software in the United States or in any other jurisdiction. The securities referred to herein may not be offered or sold in the United States or to US persons unless such sec
Slide 4: Birth of 5th Largest French Enterprise Software Company
Birth of 5th Largest French Enterprise Software Company A new major player in enterprise software, achieving critical scale with 1 a bold 2025 ambition of c.€700m revenue and c.€100m profit on operating activities Secured leadership position in a combined $90B total addressable market, 2 with unique
Slide 5: Opening a New Chapter
Opening a New Chapter Two recognized specialists to build a new major player in enterprise 1 software, leader in banking and financial services 2 A unique opportunity to create tangible value 5 This document may not be published, forwarded or distributed, directly or indirectly, in the United States
Slide 6: Two recognized specialists to build a new major player
Two recognized specialists to build a new major player in enterprise software, leader in banking and financial services 6 This document may not be published, forwarded or distributed, directly or indirectly, in the United States of America, Canada, Australia or Japan.
Slide 7: Axway is a Portfolio Company
Axway is a Portfolio Company with an established track record of in-house innovation and M&A MFT APIM B2B AFAH Specialized Products and powerful innovation Selected Acquisitions Selected Acquisitions Selected Acquisitions Selected Acquisitions Selected Acquisitions enabled by >€ 60m / year R&D inves
Slide 8: Axway is a Well-recognized Integration Specialist
Axway is a Well-recognized Integration Specialist A CLEAR PURPOSE An independent technology provider that sustainably grows enduring value, based upon trust, for our Customers, Employees, and Shareholders. €319m 19.7% Euronext Paris - Compartment B Bloomberg : AXW-FR Reuters : AXW.PA Market Capitali
Slide 9: Axway Runs a Profitable Subscription-based Model
Axway Runs a Profitable Subscription-based Model Successful shift towards subscription and recurring revenue Mid-single digit organic growth with a mature product portfolio 8% Subscription Subscription 340 Revenue 20% 59% Maintenance 6% 27% 320 Organic growth 4% 300 Maintenance Services 13% 2019 49%
Slide 10: SBS is a Unique Opportunity to Grow Axway's Portfolio
SBS is a Unique Opportunity to Grow Axway’s Portfolio Helping banks and lenders from around the world make financial services accessible to everyone, everywhere, at any time. 650+ €359m 80+ 3,600 16 Customers 2023 Carve-out Revenue Operating Countries Employees Locations SOPRA BANKING PLATFORM SOPRA
Slide 11: SBS has a Strong Potential for Higher Recurring Revenues
SBS has a Strong Potential for Higher Recurring Revenues ACCELERATE TRANSITION TO A SUBSCRIPTION MODEL LEVERAGING POWERFUL BUSINESS UNITS Support & Others Specialized Market Solutions 6% 14% Tieto FS License UK Core Banking Systems 13% Maintenance & Components 33% 67% Asset Finance 11% Delta APAK Lu
Slide 12: Proforma 2023 Key Figures
Proforma 2023 Key Figures Proforma Adjustments + Revenue €319m €359m €2m Interco €676m Profit on Op. Activities €63m €26m €5m Accounting principles alignment €84m or 12.4% of revenue 12 This document may not be published, forwarded or distributed, directly or indirectly, in the United States of Amer
Slide 13: Combined Entity to Benefit from Complementary Profiles
Combined Entity to Benefit from Complementary Profiles STRATEGICALLY DISTRIBUTED FROM INFRASTRUCTURE A UNIQUE POSITIONING IN GLOBAL PRESENCE TO BANKING APP THE FINANCIAL SERVICES INDUSTRY Asia/Pacific Middle East Africa Specialized Products Healthcare & Others 3% 1% Financial Accounting Hub 5% 6% 4%
Slide 14: A unique opportunity to create tangible value
A unique opportunity to create tangible value
Slide 15: Entering the Big League with Some Serious Arguments
Entering the Big League with Some Serious Arguments 5000 26 €676m 5th Employees Countries 2023 Proforma Revenue Enterprise software vendor in France European Major Player Top 10 French Enterprise Software Vendors by Revenue (in €m) France Leader 1. Dassault Système 5114 2. Criteo 1919 3. Cegid 791 4
Slide 16: Shared Roots and Common Culture for a Seamless Integration
Shared Roots and Common Culture for a Seamless Integration An experienced management team… and all the ingredients for a successful tie-up! Patrick Donovan Group CEO ▪ Both companies born within Sopra Steria Group Roland Royer Eric Bierry ▪ Shared DNA and common culture, built on a strong Axway CEO
Slide 17: Addressed by Awarded Leading Products
Addressed by Awarded Leading Products Gartner Magic Quadrant The Forrester Wave G2 Reports Leader in Leader in Leader in Full Life Cycle API Management API, API Management Software B2B & MFT 30 October 2023 1 July 2024 Summer 2024 Deal Survey Omdia Universe Sales League Table Ranked 3rd World Leader
Slide 18: Portfolio Business & Technical Synergies
Portfolio Business & Technical Synergies Bringing Axway’s integration value to SBS - Already available USE INCREMENTAL PORTFOLIO MARKET NEEDS CASES + OPPORTUNITIES SYNERGIES ▪ PSD2 Compliance ▪ Payments & Lending ➢ Open, Secure & Integrate ➢ Reduce costs OPEN BANKING ▪ Bank as a Platform ➢ Exp
Slide 19: A Day-to-day Software House Mindset
A Day-to-day Software House Mindset AXWAY’S RECENT SUCCESS PILLARS Customer Centric, Agile Portfolio Of Focused R&D, Engaged People, NPS Driven Leading Products Sales And Marketing Efficient Organization … AND THE DISCIPLINE IT REQUIRES Standardizing Optimizing R&D, Sales Offers & Products & Marketi
Slide 20: Clear Roadmap to Strong Ambitions
Clear Roadmap to Strong Ambitions 2023 2024 2025 2027 RESTATED* GUIDANCE AMBITION AMBITION AXW + 12 Mo. SBS AXW + 4 Months SBS AXW + SBS 3 YEARS PLAN Revenue €651m ≈€ 460m ≈ €700m >€ 750m 18 months 2 to 4% to materialize organic growth full synergies run rate Targeting Profit on Operating Activities
Slide 21: Capital Allocation Priorities
Capital Allocation Priorities FOCUS ON RETURN SHARE DELEVERAGING TO DIVIDEND BUYBACK < 2.0x As soon as Regular activation possible and of share buyback by end-2025 appropriate authorizations Objectives supported by a maintained prudent and efficient capital structure with a 40% equity and 60% debt f
Slide 22: Appendices
axway Appendices »
Slide 23: 2023 Proforma Income Statement
2023 Proforma Income Statement 2023 2023 2023 Proforma In millions of euros €m % of Rev. €m % of Rev. €m % of Rev. Revenue 319,0 359,2 676,2 Employee costs -179,6 -237,8 -417,4 External expenses -63,8 -80,1 -141,9 Taxes and duties -2,9 -3,2 -6,1 Depreciation and amortisation, provisions and impairme
Slide 24: Axway's Historical Performance
Axway’s Historical Performance Revenue Profit on (€m) BUSINESS MODEL TRANSITION Ope. Activities (€m) 330 65 Revenue 310 60 Profit on Operating Activities 290 55 270 50 250 45 230 40 210 35 190 30 170 25 150 20 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Organic Growth +5.7% -1.6
Slide 25: Axway's External Growth History
Axway's External Growth History 350 2023 Customer Position 2017 300 Technology / Know-how 2016 2019 2022 250 Revenue evolution (€m) 2012 2014 200 2011 2008 150 2007 2006 100 2002 50 1st Collaborative Business Interaction Digital Business Integration Integration Suite Business Solutions Networks Enab
Slide 26: Axway, a Responsible and Committed Company
Axway, a Responsible and Committed Company Rolling out its corporate responsibility policy through 3 commitments: Employer, Societal and Environmental PRINCIPLES GOVERNANCE DISCLOSURE CERTIFICATIONS 26 This document may not be published, forwarded or distributed, directly or indirectly, in the Unit
Slide 27: Alternative Performance Measures
Alternative Performance Measures ACV: Annual Contract Value – Annual contract value of a subscription agreement. ARR: Annual Recurrent Revenue – Expected annual billing amounts from all active maintenance and subscription agreements. Employee Engagement Score: Measurement of employee engagement thro
Slide 28: Disclaimer
Disclaimer This document may not be published, forwarded or distributed, directly or indirectly, in the United States of America, Canada, Australia or Japan. This document does not constitute a public offer, an offer to purchase or an intention to solicit the interest of the public for a public offe