74software · EURONEXT:74SW
74software — Axway — FY2015 Earnings Presentation
40 slides from 74software's earnings presentation, Feb 25, 2016
Slide 1: Full Year 2015 Results
Full Year 2015 Results Jean-Marc Lazzari Chief Executive Officer 25 February 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 • Full Year 2015 Analysis Jean-Marc Lazzari • Accounting & Financial Results Chief Executive Officer • Positioning & Strategy • Q&A Patrick Donovan Chief Financial Officer Patrick Gouffran Investor Relations 3
Slide 4: 2015 Analysis
Jean-Marc Lazzari Chief Executive Officer 2015 Analysis 4
Slide 5: Axway 2015 in Key Facts
Axway 2015 in Key Facts • New CEO and Organization adaptation • (Re)positioning and strategy review • Major transformation program started • Ecosystem engagement initialisation • Appcelerator acquisition early 2016 5
Slide 6: FY2015 in a Nutshell
FY2015 in a Nutshell USA API & OI Cloud France First signal of Main growth driver Strong booking and Low Q4 business rebound Revenue Growth still underpenetrated Deployment with our partners: - Amazon - Local operators Axway delivers a solid and profitable year 6
Slide 7: FY2015: Key Figures (€m)
FY2015: Key Figures (€m) Total growth: +8.8% 2015 2014 Revenue 284.6 261.6 Profit from business 44.5 39.7 activity (%revenue) (15.6 %) (15.2%) Net Profit 27.8 26.7 (%revenue) (9.8 %) (10.2%) 7
Slide 8: FY2015: Revenue by Activity
FY2015: Revenue by Activity 2014 2014 Total Organic [€M] 2015 Published Pro forma Growth Growth1 Licenses 80.5 79.6 86.2 1.1% -6.7% Maintenance 137.7 120.5 132.1 14.3% 4.3% Product Revenue 218.2 200.1 218.3 9,0% 0,0% Services 66.4 61.5 66.3. 8.0% 0.1% Axway 284.6 261.6 284.7 8.8% 0.0% (1) At constan
Slide 9: FY2015: Revenue by Region
FY2015: Revenue by Region 2014 2014 Total Organic [€M] 2015 Published Pro forma Growth Growth1 France 95.2 103.4 102.4 -7.9% -7.0% Rest of Europe 65.8 59.5 65.0 10.5% 1.2% Americas 109.7 89.1 106.5 23.2% 3.0% Asia/Pacific 13.9 9.6 10.8 45.3% 29.1% Axway 284.6 261.6 284.7 8.8% 0.0% (1) At constant ex
Slide 10: Balanced and resilient Business Model
Balanced and resilient Business Model BY REGION BY ACTIVITY France Rest of Europe Services Licences Of which Cloud 23% 28% 33% 23% 5% 39% 49% Asia/Pacific Americas Maintenance 10
Slide 11: Accounting & Financial Results
Patrick Donovan Chief Financial Officer Accounting & Financial Results 11
Slide 12: Income Statement (1/2)
Income Statement (1/2) • Total Revenue grew 8.8 % with one additional quarter of Systar and a stronger Dollar • Gross Profit as a% of Revenue stable in all periods, with an underlying shift towards the Cloud • Sales, Marketing and R&D continued to grow to support a larger product and target customer
Slide 13: Income Statement (2/2)
Income Statement (2/2) • Profit on Operating Activities finished at 15.6%, stable and comparable to prior years • 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 tax asset
Slide 14: Simplified Balance Sheet (1/2)
Simplified Balance Sheet (1/2) • Goodwill increased from the currency impact on conversion of US Dollar balance sheet • Strong cash balance to end 2015 at 44,7 M€ • DSO finished at 85, versus 105 at the end of 2014 In millions of euros 31/12/2015 31/12/2014 31/12/2013 ASSETS Goodwill 251.8 236.5 189
Slide 15: Simplified Balance Sheet (2/2)
Simplified Balance Sheet (2/2) • No borrowings under 125 M€ RCF at 31 Dec 2015, Financial debt from other one off sources • Other current liabilities includes 66.6 M€ of deferred income in 2015 versus 61.6 M€ in 2014 In millions of euros 31/12/2015 31/12/2014 31/12/2013 SHAREHOLDERS' EQUITY AND LIAB
Slide 16: Change in Equity
Change in Equity • Due to the USD/Euro conversion rate movement a significant translation adjustment was recorded in 2014 and 2015 on the conversion of the foreign balance sheets to Euros In millions of euros 31/12/2015 31/12/2014 31/12/2013 Equity at Opening of Period 298.5 258.4 233.9 Profit for t
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 for 2015 is 44.5 M€ • Systar borrowing against RCF was paid off in 2015 In millions of euros FY 2015 FY 2014 FY 2013 Net profit for t
Slide 18: Financial Structure — Covenants 2015
Financial Structure — Covenants 2015 • Financial covenants met in all periods. Net treasury for 2015 is 35,7 M€ • Our main covenant is the leverage ratio: Net debt/EBE ≤ 3 (-0,98 at Dec 31, 2015) • The 125 M€ credit line is extended to mid-2020 and is fully available 120 0.2 100 0 -0.2 80 -0.4 60 -0
Slide 19: Axway Shareholder Structure
Axway Shareholder Structure 31/12/2015 20,773,916 SHARES OUTSTANDING 35,538,163 VOTING RIGHTS Sopra Pasquier Odin Geninfo Treasury Managers Sopra GMT Caravelle Public Steria Family Family (SG Group) Shares Shares outstanding 24.9% 0.1% 1.4% 1.7% 21.6% 8.6% 12.3% 28.9% 0.2% Voting Rights 29.0% 0.1% 1
Slide 20: Financial Summary
Financial Summary Total revenue growth of 8.8% to 284 M€ Growth in results from operating activities to 15.6% of total revenues in 2015 Solid ending cash of 45 M€, well above guidance due to conversion of customer and tax receivables with some small opportunistic bank borrowings 20
Slide 21: Positioning & strategy
Positioning & strategy • Digital positioning Confirmed • Mid-term perspectives • Appcelerator update 21
Slide 22: Digital is everywhere
Digital is everywhere LARGE ENTERPRISES EXPECT AT LEAST 28% OF REVENUES WILL COME FROM DIGITAL BUSINESS THE NEXT THREE YEARS Source: Accenture – “Harnessing the Power of Entrepreneurs to 22 Open Innovation,” 2015; n=2,000
Slide 23: Enterprise Threatened with Distruption
Enterprise Threatened with Distruption PWC – 18th Annual Global CEO Survey, 2015; n=1,322 23
Slide 24: Axway Positioning
Axway Positioning S axway PEOPLE, PROCESSES & THINGS 24 | www.axway.com
Slide 25: Portfolio Segmentation and a Bi-modal Approach
Portfolio Segmentation…and a Bi-modal Approach DIGITAL BUSINESS ENABLEMENT INTEGRATION FOUNDATION ECOSYSTEM ENGAGEMENT Managed File Transfer Analytics B2B/EDI Integration API Management Cloud Service Community Management Integration Identity Federation XML & SOA Services Identity Validation API Inte
Slide 26: Digital Enablement
Digital Cloud Services Mobile Enablement Cloud “Things” Adapters IoT Traditional B2B Middleware & B2B via APIs Enterprise App Store API Composition B2B B2C & B2E Community Analytics Management Integration Mobile App Platform Integration ON-PREMISE DIGITAL ENABLEMENT Identity API B2B Integration Data
Slide 27: Positioning & strategy
Positioning & strategy • Digital positioning Confirmed • Mid-term perspectives • Appcelerator update 27
Slide 28: 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 29: Additional potential Digital Enablement Markets
Additional potential Digital Enablement Markets INTEGRATION FOUNDATION Aggregate Market1 $3,938M +12% (1) Axway estimates based on a combination of Market Analyst Projections and assumptions 29
Slide 30: Additional potential Digital Enablement Markets
Additional potential Digital Enablement Markets Aggregate INTEGRATION FOUNDATION Market1 Aggregate $5,908M Market 1 +20% $3,938M +12% (1) Axway estimates based on a combination of Market Analyst Projections and assumptions 30
Slide 31: Positioning & strategy
Positioning & strategy • Digital positioning Confirmed • Mid-term perspectives • Appcelerator update 31
Slide 32: The Forrester Wave: Mobile Infrastructure Services, Q3 2015
THE FORRESTER WAVETM: MOBILE INFRASTRUCTURE SERVICES, Q3 2015 Appcelerator is one of six vendors who is “…strong across the major mobile infrastructure disciplines … [and] …well suited to act as the centerpiece of nearly all enterprise mobility solutions.”1 ¹The Forrester . Wave™: Mobile Infrastruct
Slide 33: Appcelerator Platform
Appcelerator Platform OPEN, EXTENSIBLE, CLOUD-BASED OPEN, EXTENSIBLE, CLOUD-BASED 33
Slide 34: Appcelerator Ecosystem
Appcelerator Ecosystem 70% of the Fortune 100 300,000,000+ 400+ Devices running Appcelerator- ISV extensions & third powered apps, to go with 100,000+ party modules apps built with Appcelerator. 2,000,000,000+ 100+ Cloud API calls per month through Proven solution partners the Appcelerator Platform
Slide 35: BMW i Remote App
With the BMW i Remote App for iOS and Android, you can receive detailed status of the BMW i3 at any time. Navigation Safety Entertainment Diagnostics BMW Fuel Automobile Data IoT App Mobile App 34 35
Slide 36: BMW i Remote App
With the BMW i Remote App for iOS and Android, you can receive detailed status of the BMW i3 at any time. Navigation Safety Entertainment Diagnostics BMW Fuel Automobile Data IoT App Mobile App 35 36
Slide 37: As a Conclusion
As a Conclusion “It is not the strongest of the species that survives, nor the most Intelligent that survives. It is the one that is most adaptable to change.” – Charles Darwin 37 36
Slide 38: Axway on the road
Axway on the road R&D key investments Pipeline driven by the strategic plan Other 14% GEMEA 20% USA 41% 45% FR-BN Digital 28% Engagement MFT 27% APAC LATAM 13% 10% 2% B2B Marketing campains Internal digital transformation 38
Slide 39: Q&A
Q&A 39
Slide 40: Thank you
Thank you visit www.investors.axway.com Patrick Gouffran Investor Relations pgouffran@axway.com 40