Slide 1: TXT e-solutions Corporate Presentation
TXT e-solutions CORPORATE PRESENTATION April 16th, 2014 April 2014
Slide 2: A bit of History
A bit of History • Founded by A.Braga Illa • Until 2000: healthy, but very small «Italy-only» System Integrator • July 2000: IPO Borsa Italiana with Market Cap 200 m€ (!), and a Project: – Become a «software vendor» – Become «International» Today: – Profitable International Software specialist: 2013
Slide 3: Important Shareholder Return in the last 3 Years
Important Shareholder Return in the last 3 Years • Cash Dividends since 2011: – 2011: 1 € /share (extraordinary, rebased) – 2013: 0,20 € /share (rebased) – 2014: Planned 0,25 € / share • Share Price Performance • 1:1 Free Share distributions in 2012 & 2014 3
Slide 4: FY 2013 - Results
FY 2013 - Results Revenues: 52,6m€ (+13% vs. 2012) of which 54% International Net Profit from Operations: 4,6 m€ (vs. 4,1 m€ in 2012) Free Cash Flow 10% of Revenues NFP: 8,6 m€ (vs. 6,0 m€ on 31/12/2012) Treasury Stocks 1.368.120 shares (avg. purchase price 2,61 €/share) 4
Slide 5: TXT Perform – Major Growth & Profit opportunity for TXT Group
TXT Perform – Major Growth & Profit opportunity for TXT Group Strategy - Global leader in: Integrated Retail Solutions for Fashion, Luxury & Specialty Retailers: End-to-End, from collection design to stores 5
Slide 6: Main questions we would like to answer today
3 main questions we would like to answer today Why the Opportunity is now? Why TXT is «unique» & the«first mover»? Why can TXT beat the competition? Confidential & Proprietary 6
Slide 7: A Major Opportunity: Why Now?
A Major Opportunity: Why Now? • Luxury, Fashion & Retail Brands: difficult future – Margins – Competition – E-commerce – Complexity: stores, channels, products, local/global, … • Until now: a hodgepodge of fragmented technology – High margins in Luxury & Fashion … – Clever designers, very experience
Slide 8: Fashion, Luxury & Specialty Retail: Large & Transforming Industry
Fashion, Luxury & Specialty Retail: Large & Transforming Industry • 80% of Retailers are based in Western EU & North America and operate world-wide: • Retailers are big IT spenders (>10% of the Global IT Industry) • TXT focuses on healthiest & best performing segments: – Apparel, Footware, Fast Fash
Slide 9: TXT has a unique offering for Retail Planning: End-to-End Retail
TXT has a unique offering for Retail Planning: we call it “End-to-End Retail” • Depth: focused on core processes in Retail Planning, from strategy to operations • Breadth: sole vendor offering both Product Lifecycle Management & Retail Planning (end-to-end, from collection to stores and e-commerce)
Slide 10: From hodgepodge to TXT's Integrated End-to-End Retail
From hodgepodge to TXT’s Integrated End-to-End Retail Confidential & Proprietary 10
Slide 11: Commitment to Innovate: 4,8 m€ in Product Development & Business Innovation
Commitment to Innovate: 4,8 m€ in Product Development & Business Innovation • Continue facilitating & speeding-up adoption of our solutions – Usability & Scalability, leveraging on Global Technology Partnership – TXT On-Cloud – AgileFit deployment: • Expedite projects: step-by-step implementation, s
Slide 12: A growing Customer Base of 350+ Clients in the Industry
A growing Customer Base of 350+ Clients in the Industry • Unique by quality & quantity 15 New Clients in 2013 • Retail Planning expertise spanning across product categories & channels Luxury Global Brands Fast Fashion Mixed Goods Luxury Global Brands Mixed Goods
Slide 13: Integrated End-to-end Retail will be Top Priority in Retailers' Budgets
Integrated End-to-end Retail will be Top Priority in Retailers’ Budgets • Integrated Retail Processes are «THE» enabler to ongoing Industry transformation, ensuring consistency of decisions: – From Strategy to Execution – Across Functions – Across the extended Retailers’ organisation; • End-to-End R
Slide 14: What's Next in our Journey
What’s Next in our Journey • Baseline organic growth: – in Europe and North America – in the core market of global Luxury, Fashion & Specialty retailers • Accelerated through targeted acquisitions • Sustained by continuous investments in product and business process innovation • Self-financed, throu
Slide 15: Executing on the Strategy: Growth & Profit Drivers
Executing on the Strategy: Growth & Profit Drivers Grow 1. Extend Geography: short-/mid-term North America; in APAC now leveraging on our Customers’ presence, longer-term native APAC Retailers. 2. Expand to other Retail segments, in addition to Fashion & Luxury; longer-term sell to smaller Retailers
Slide 16: Why TXT?
Why TXT? • The Market for End-to-End Retail is growing from a small base • TXT is the sole vendor covering the whole of it, from Collection design to distribution to Stores & e-Commerce • TXT ability & commitment to Innovate will keep us ahead of competition • It will be very hard for Competitors to
Slide 17: Appendix – Financial Details
APPENDIX – FINANCIAL DETAILS
Slide 18: 2013 - Revenues' Growth & Investments
2013 - Revenues’ Growth & Investments 2012 € thousand 2013 Var % restated % % REVENUES 52.560 100,0 46.499 100,0 13,0 In 2013: Direct costs 24.854 47,3 22.351 48,1 11,2 Revenues grew +13.0% GROSS MARGIN 27.706 52,7 24.148 51,9 14,7 (+20.1% TXT Perform) and Research and Development costs 4.761 9,1 4.
Slide 19: Strong Balance Structure
Strong Balance Structure 31.12.2012 € thousand 31.12.2013 Var Restated(*) Intangible assets 15.370 16.621 (1.251) Tangible assets 1.118 1.154 (36) Other fixed assets 1.362 795 567 Fixed Assets 17.850 18.570 (720) Inventories 1.451 1.388 63 Trade receivables 16.840 17.274 (434) Other short term asset
Slide 20: Shareholding Structure 31.12.2013
Shareholding Structure 31.12.2013 20
Slide 21: 2012-2014: Strong Stock Performance
2012-2014: Strong Stock Performance 14 800.000 2012 Performance 2013 Performance +188% +46% 700.000 12 600.000 2014 10 Performance +3% 500.000 8 Daily Volumes TXT Price € 400.000 6 300.000 4 200.000 2 100.000 0 0 Daily Volumes TXT Price € FTSE MIB Index 21