Slide 1: 1st Half Year 2016 Results
1st Half Year 2016 Results Jean-Marc Lazzari Axway CEO 27 July 2016 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 license contracts, which often represent investments for clients, are mo
Slide 3: Agenda
Agenda • 1st Half Year 2016 Analysis • Accounting & Financial Results Jean-Marc Lazzari • Mid-term Plan Status Chief Executive Officer • Q&A Patrick Donovan Patrick Gouffran Chief Financial Officer Investor Relations 3
Slide 4: 1st Half Year 2016 Analysis
Jean-Marc Lazzari, CEO 1st Half Year 2016 Analysis 4
Slide 5: HY 2016: Key Figures (€M)
HY 2016: Key Figures (€M) Total Growth + 7.1% 2016 2015 Revenue 144.7 135.1 Profit from business activity 16.3 12.7 % revenue 11.3% 9.4% Net Profit 11.0 2.3 % revenue 7.6% 1.7% 5
Slide 6: HY 2016: Revenue by Activity
HY 2016: Revenue by Activity 2015 2015 Total Organic [€M] 2016 Reported Restated1 Growth Growth1 Licenses 37.4 34.2 33.9 9.5% 10.3% Maintenance 70.2 68.0 67.5 3.1% 4.0% Product Revenue 107.6 102.2 101.4 5.3% 6.1% Services 37.1 32.8 35.5 12.9% 4.4% Axway 144.7 135.1 136.9 7.1% 5.7% (1) At constant ex
Slide 7: HY 2016: Revenue by Region
HY 2016: Revenue by Region 2015 2015 Total Organic [€M] 2016 Restated1 Reported Growth Growth1 France 43.9 47.5 47.5 -7.5% -7.5% Rest of Europe 31.8 31.6 31.2 0.9% 2.1% Americas 61.5 49.6 52.1 24.0% 18.1% Asia/Pacific 7.4 6.5 6.2 15.1% 20.1% Axway 144.7 135.1 136.9 7.1% 5.7% (1) At constant exchange
Slide 8: HY 2016: Revenue by Quarter & Region
HY 2016: Revenue by Quarter & Region 2015 2015 Organic 2015 2015 Organic Q1 [€M] 2016 Q2 [€M] 2016 Reported Restated1 Growth1 Reported Restated1 Growth1 France 20.1 22.1 22.1 -9.2% France 23.8 25.4 25.4 -6.1% Rest of Rest of 14.6 14.3 14.2 2.3% 17.3 17.2 17.0 1.9% Europe Europe Americas 27.5 23.2 24
Slide 9: HY 2016: Revenue by Quarter & Activity
HY 2016: Revenue by Quarter & Activity 2015 2015 Organic 2015 2015 Organic Organic Q1 [€M] 2016 Q2 [€M] 2016 Reported Restated1 Growth1 Reported Restated1 Growth1 Growth1 Licenses 12.4 13.6 13.6 -8.6% Licenses 25.1 20.6 20.4 22.9% -7.7% Maintenance 34.7 33.5 33.6 3.5% Maintenance 35.4 34.5 33.9 4.5%
Slide 10: HY 2016: Balanced & Resilient Business Model
HY 2016: Balanced & Resilient Business Model BY REGION BY ACTIVITY France Rest of Europe Licenses Services (25%) 19% 22 % 30% 26% 6% Cloud (included In Services) 5% 43% 49% Asia/Pacific Americas Maintenance 10
Slide 11: HY 2016: Headcount at End of June 2016
HY 2016: Headcount at End of June 2016 1957 (1849 June 2015) FRANCE 642 USA 508 11
Slide 12: Accounting & Financial Results
Patrick Donovan Chief Financial Officer Accounting & Financial Results 12
Slide 13: Income Statement (1/2)
Income Statement (1/2) • Total Revenue grew 7,1% in total, 5,7% organic – with strong license growth • Gross Profit is 69,3% of Revenue, improving over first half of 2015 • Operating costs grew primarily due to additional costs from Appcelerator acquisition in Jan 2016 In millions of euros HY 2016 H
Slide 14: Income Statement (2/2)
Income Statement (2/2) • Profit on Operating Activities finished at 11.3%, an improvement over first half of 2015 • In 2015, Restructuring charge to rationalize our activities after years of acquisitions, primarily in our R&D and Sales areas • Income tax benefit in 2015 due to the release of certain
Slide 15: Simplified Balance Sheet (1/2)
Simplified Balance Sheet (1/2) • Goodwill increased as well as Intangibles due to Appcelerator Acquisition • Consistent cash balance across all periods • DSO finished at 78 days at HY 2016, versus 80 at HY 2015 In millions of euros HY 2016 FY 2015 HY 2015 ASSETS Goodwill 279.9 251.8 247.9 Intangible
Slide 16: Simplified Balance Sheet (2/2)
Simplified Balance Sheet (2/2) • 20 M€ borrowings under 125 M€ RCF at 30 June 2016 • Other current liabilities includes 86.9 M€ of deferred income in HY2016 versus 81.8 M€ in HY 2015 • Total shareholders’ equity is 338.4 M€ at 30 June 2016 In millions of euros HY 2016 FY 2015 HY 2015 SHAREHOLDERS' E
Slide 17: Cash Flow Statement
Cash Flow Statement • Working Capital Requirements — positive improvement 2015 with the conversion of receivables from customers and due from tax agencies • Free cash flow for HY 2016 is 17.4 M€ • Systar borrowing against RCF was paid off in 2015 and 20 M€ was borrowed under RCF for Appclerator acqu
Slide 18: Financial Structure — Covenants 2016
Financial Structure — Covenants 2016 • Financial covenants met in all periods. Net treasury for HY 2016 is 10,5 M€ • Our main covenant is the leverage ratio: Net debt/EBE ≤ 3 (-0,98 at Dec 31, 2015 and -0,21 at June 30, 2016) • The 125 M€ credit line is extended to mid-2021 181,99 -0,03 -0,21 30/06/
Slide 19: Axway Shareholders Structure
Axway Shareholders Structure 31/06/2016 20,804,681 SHARES OUTSTANDING 33,793,093 VOTING RIGHTS Pasquier & Treasury Sopra Steria Odin Families Sopra GMT Caravelle Public Shares & Managers Shares 33.3% 3.27% 21.6% 12.3% 29.2% 0.1% Voting Rights 35.7% 3.40% 26.3% 15.2% 19.2% Concerted action - 58.29% o
Slide 20: Financial Summary
Financial Summary Total revenue growth of +7.1% Growth in result from operating activities to 11.3% of total revenues in HY 2016 Solid ending cash of 42 M€ 20
Slide 21: Mid-term Plan Status
Jean-Marc Lazzari, CEO Mid-term Plan Status 21
Slide 22: Axway Business plan ambition by 2018
Axway Business plan ambition by 2018 • Double Axway size • Preserve margins before acquisition • Target 20% growth annually in license/cloud revenue in the United States market • Achieve average annual growth of 30% in Ecosystem Engagement revenue • Keep our historic leadership in France • Active M&
Slide 23: Axway Business plan ambition by 2018
Axway Business plan ambition by 2018 • Double Axway size*: Good start with HY Growth 2016 and ambition to add inorganic/organic Revenue through 2016 Revenue (M€) 500 400 2016 2014 300 2012 2008 200 2007 100 2006 2002 0 * 2014 base of 262 M€ 23
Slide 24: Axway Business plan ambition by 2018
Axway Business plan ambition by 2018 • Preserve margins before acquisition – HY Margin stable with prior year S1 2016 S1 2015 Profit from business activity (M€) 16.3 12.7 %revenue 11.3% 9.4% Net Profit (M€) 11.0 2.3 %revenue 7.6% 1.7% 24
Slide 25: Axway Business plan ambition by 2018
Axway Business plan ambition by 2018 • Target +20% growth annually in license/cloud revenue in the United States market: • Total US License/Cloud growth in HY 2016 of 76% • Achieve average annual growth of +30% in Ecosystem Engagement revenue • Total Ecosystem Engagement License growth in HY 2016 of
Slide 26: Axway Business plan ambition by 2018
Axway Business plan ambition by 2018 • Keep our historic leadership in France: S2 pipeline Size of deals 30% of encouraging in growth the total sales Existing Size of deals S2 Pipeline clients N% in growth encouraging 26
Slide 27: Axway Business plan ambition by 2018
Axway Business plan ambition by 2018 • Active M&A plan on both engagement and foundation domains 27
Slide 28: On the way …
On the way … • Double Axway size • Increase margins before acquisition • Target 20% growth annually in license/cloud revenue in the United States market • Achieve average annual growth of 30% in Ecosystem Engagement revenue • Keep our historic leadership in France • Active M&A plan on both engagemen
Slide 29: Q&A
Q&A 29
Slide 30: Thank you
Thank you presentation available on www.investors.axway.com/en Mobile App: Axway IR available on Apple store & Android Patrick Gouffran Investor Relations pgouffran@axway.com 30