Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — Investor Presentation (March 2014)
22 slides from Txt E-solutions's investor presentation, March 2014
Slide 1: TXT e-solutions Corporate Presentation March 2014
TXT e-solutions CORPORATE PRESENTATION March 2014
Slide 2: A bit of History
A bit of History • Founded 30 years ago by A.Braga Illa • A healthy, small «Italian» System Integrator until 2000. • July 2000: IPO (Italian Stock Exchange) with a Project: – From «system integrator» to «software vendor» – From «Italian» to «International» After 14 years: – A successful Internationa
Slide 3: Key Investments & Shareholder's Return in the last 2 Years
Key Investments & Shareholder‘s Return in the last 2 Years • Acquisitions: Maple Lake in September 2012 (8,8 m€ Cash + 1,5 m€ Shares) • New TXTPerform Products: – TXT On-Cloud; – TXT Mobile; – 4 new Mobile PLM & Planning modules • Dividends distributed in 2011, 2012 & 2013; planned for 2014 – Dec. 2
Slide 4: FY 2013 - Results
FY 2013 - Results Revenues: 52,6m€ (+13% vs. 2012) of which 54% International EBIT from Operations: 5 m€ (vs. 4,3 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. price 2,61 €/share) 40% 60% Software Vendor of Advanced Integrate
Slide 5: TXT Perform – Major Growth & Profit opportunity for TXT Group
TXT Perform – Major Growth & Profit opportunity for TXT Group Licences Strategy - Global leader in: 18% • End-to-end Integrated Retail Planning solutions for Services Mainten • Fashion, Luxury & Specialty Retailers 60% ances 22% 5
Slide 6: Fashion, Luxury & Specialty Retail: Large, Healthy & Transforming Industry
Fashion, Luxury & Specialty Retail: Large, Healthy & Transforming Industry • 80% of Retailers are based in Western EU & North America and operate World-wide: ~1.000 mid-large (> 300 m€) targets; APAC is growing faster, local players are still immature • Retailers are big IT spenders (>10% of the Glo
Slide 7: 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 Fast Fashion Mixed Goods
Slide 8: End-to-end Integrated Retail Planning: Top Priority in Retailers' Budgets
End-to-end Integrated Retail Planning: Top Priority in Retailers’ Budgets • Planning Processes are «THE» enabler to ongoing Industry transformation, ensuring consistency of decisions: – From Strategy to Execution Increase Sales: $ Grow Margins: – Across Functions +8% same-store sales + 1.2 %-points
Slide 9: Unique End-to-End Integrated Retail Planning Footprint
Unique End-to-End Integrated Retail Planning Footprint • Depth: focused on customers’ planning core processes in our core verticals • Breadth: sole vendor offering both Product Lifecycle Management & Retail Planning • Modular & Integrated: start small & upscale 9
Slide 10: TXT Perform Competitive Position: Strong in the Target Markets
TXT Perform Competitive Position: Strong in the Target Markets Recognised leadership in an already consolidated competitive landscape … … with high barriers to entry #1 in Core Functional Scope #3 Overall (Functionality & Market Presence) TXT Market share: ~ 15% in Europe ~ 5% “W-wide” Source: Manag
Slide 11: Commitment to Innovate: 4+ m€ invested in 2013, 3 Product launches
Committment to Innovate: 4+ m€ invested in 2013,3 Product launches • Focus on «business innovation», thanks to Global ISV Partnership with - More “best practices inside”, deeper functionality & integration, higher usability & scalability - TXT On-Cloud: further lower adoption barriers of our solutio
Slide 12: 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 innovation • Self-financed, through: – Profit & Cash g
Slide 13: Executing on the Strategy: Growth & Profit Drivers
Executing on the Strategy: Growth & Profit Drivers Growth 1. Extend Geography: short-/mid-term North America; in APAC now leveraging on our Customers’ presence, longer-term native APAC Retailers. 2. Expand in other Retail segments, in addition to Fashion & Luxury; longer-term sell to smaller Retaile
Slide 14: TXT Next - Priorities & Strategic Guidelines for the next 3 Years
TXT Next - Priorities & Strategic Guidelines for the next 3 Years Healthy (+12% in 2011-13) & profitable; opportunity to keep growing organically in the long run: • Around the «as-is» perimeter & preserving the current good margins • Building on a baseline revenue stream from solid, long-lasting rel
Slide 15: TXT Next – Aerospace & High-Tech: seeding future growth opportunities
TXT Next – Aerospace & High-Tech: seeding future growth opportunities «Exploring» new domains, together with Customers Growing Int’l exposure, following our Customers Model-based Design for Embedded SW Augumented Reality for Simulation & Training Followed our Customers in 24 Countries worldwide Tabl
Slide 16: Why TXT should Outperform the Market in the next 3 Years
Why TXT should Outperform the Market in the next 3 Years • TXT Perform: – Retail Industry is large, growing and healthy – End-to-end Integrated Retail Planning is a «big niche» & a growing investment area for target clients – TXT has a unique offering in End-to-end Integrated Retail Planning, from C
Slide 17: Why invest in TXT?
Why invest in TXT? • International profile: 50+% of Revenues from Int’l markets • Good Growth in Revenue, Profit & Cash in 2011 - 13 • Large fidelised customer base of 350+ blue-chip customers: a key asset in good & bad times, hard to replicate for new competitors • Solid presence in large, healthy
Slide 18: APPENDIX – FINANCIAL DETAILS
APPENDIX – FINANCIAL DETAILS
Slide 19: 2013 - Revenues' Growth & Investments
2013 - Revenues’ Growth & Investments 2012 € thousand 2013 Var % restated % % In 2013: REVENUES 52.560 100,0 46.499 100,0 13,0 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 20: 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 21: Shareholding Structure 31.12.2013
Shareholding Structure 31.12.2013 Management A. Braga Illa 9,7% 13,5% Market 37,9% E-Business Consulting 26,3% Treasury Shares 11,2% 21
Slide 22: 2012-2013: Strong Stock Performance
2012-2013: Strong Stock Performance 14 800.000 2012 Performance +46% 2013 Performance +188% 700.000 12 2014 Performance 600.000 +25% 10 500.000 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 22