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74software — Axway — FY2016 Earnings Presentation

41 slides from 74software's earnings presentation, Feb 23, 2017

  1. Slide 1: Full-Year 2016 Analyst Conference

    Full-Year 2016 Analyst Conference 23 Feb. 2017 © 2017 Axway | CONFIDENTIAL 1

  2. 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

  3. Slide 3: Agenda

    Agenda Speakers • Full Year 2016 Analysis • Accounting & Financial Results • Mid-Term Status • Q&A– direct, audio, chat Jean-Marc Lazzari, Patrick Donovan, CEO CFO © 2017 Axway | CONFIDENTIAL 3

  4. Slide 4: Full-Year 2016 Analysis

    Full-Year 2016 Analysis Jean-Marc Lazzari CEO

  5. Slide 5: Highlights 2016

    Highlights 2016 #axway • Transition year • Continued transformation: PM, R&D… • Appcelerator Integration • New branding “imagination takes shape” • Moving people Paris, Sydney, Singapore… • AMPLIFY platform innovation © 2017 Axway | CONFIDENTIAL 5

  6. Slide 6: Axway announces the acquisition of Syncplicity

    • Axway announces the acquisition of Syncplicity • Leader in secure collaboration and file sharing (EFSS) © 2017 Axway | CONFIDENTIAL 6

  7. Slide 7: Key figures 2016

    Key figures 2016 Total growth +5.8% 2015 2016 Published Revenue 301.1 284.6 Profit from business activity 50.8 44.5 (%revenue) 16.9% 15.6% Net Profit 31.5 27.9 (%revenue) 10.5% 9.8% (1) At constant exchange rates and on a like-for-like basis © 2017 Axway | CONFIDENTIAL 7

  8. Slide 8: Revenue by activity 2016

    Revenue by activity 2016 2015 2015 Organic [€M] 2016 Published Restated Growth1 Licenses 81.3 80.5 79.9 1.8% Maintenance 143.0 137.7 136.6 4.7% Services 76.8 66.4 72.0 6.7% Axway 301.1 284.6 288.5 4.4% (1) At constant exchange rates and on a like-for-like basis © 2017 Axway | CONFIDENTIAL 8

  9. Slide 9: Revenue by region 2016

    Revenue by region 2016 2015 2015 Organic [€M] 2016 Published Restated Growth1 France 94.2 95.2 94.8 -0.6% Rest of Europe 68.8 65.7 64.0 7.4% Americas 122.9 109.7 115.9 6.0% Asia Pacific 15.3 13.9 13.8 10.7 Axway 301.1 284.6 288.5 4.4% (1) At constant exchange rates and on a like-for-like basis © 201

  10. Slide 10: Balanced and resilient business model

    Balanced and resilient business model By Region By Activity Product Software 80.84%/R +6.8%growth 31% 23% 26% 27% France Rest of Europe Services Licenses Of which Cloud +26.6% Growth 5% 41% 47% Asia Pacific Americas Maintenance Recurring 53.8%/R +9.9%growth Software 33.34%/R +11.2% growth © 2017 Axw

  11. Slide 11: Headcount at end of December 2016

    Headcount at end of december 2016 1930 607 (1884 Dec. 2015) 504 © 2017 Axway | CONFIDENTIAL 11

  12. Slide 12: Accounting & Financial Results

    Headcount at End of 2016 Accounting & Financial Results 1884 Patrick Donovan FRANCE 680 CFO USA 440 © 2017 Axway | CONFIDENTIAL 12

  13. Slide 13: Income statement (1/2)

    Income statement (1/2) • Total Revenue grew 5.8 % with total growth seen in all lines of business • Gross Profit as a % of Revenue improved in all periods with improved Service and Cloud profitability • R&D continued to grow in support of our growing portfolio and new Platform launch In millions of

  14. Slide 14: Income statement (2/2)

    Income statement (2/2) • Profit on Operating Activities finished at 16.9%, a strong 1.3 point improvement over FY2015 • Income tax benefit in 2015 due to the release of certain tax asset valuation reserves as well as favorable profit levels across our different tax jurisdictions. • Basic EPS improve

  15. Slide 15: Simplified balance sheet (1/2)

    Simplified balance sheet (1/2) • Goodwill and intangibles increased from the acquisition of Appcelerator • Strong cash balance to end 2016 at 51.7 • DSO finished at 85 days, equal to 2015 end of year DSO In millions of euros 31/12/16 31/12/15 31/12/14 ASSETS Goodwill 288.8 251.8 236.5 Intangible ass

  16. Slide 16: Simplified balance sheet (2/2)

    Simplified balance sheet (2/2) • 20 M€ of borrowings under 125 M€ RCF at 31 Dec 2016, additional debt outside RCF • Current liabilities includes 74.5 M€ of deferred income in 2016 versus 66.6 M€ in 2015 In millions of euros 31/12/16 31/12/15 31/12/14 SHAREHOLDERS' EQUITY AND LIABILITIES Share capita

  17. Slide 17: 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 31/12/16 31/12/15 31/12/14 Equity at Opening of Period 340.6 298.5 258.4 Profit for the per

  18. Slide 18: Cash Flow statement

    Cash Flow statement • Working Capital Requirements — positive improvement in 2014 and 2015 with monetization of certain assets and improvement in DSO. 2016 Change finished at -5,9 M€ • Free cash for 2016 is 27.9 M€ versus 44.5 M€ for 2015 In millions of euros FY 2016 FY 2015 FY 2014 Net profit for t

  19. Slide 19: Financial structure — Covenants 2016

    Financial structure — Covenants 2016 • Financial covenants met in all periods. Net treasury for 2016 is 16,3 M€ • Our main covenant is the leverage ratio: Net debt/EBE ≤ 3 (-0,33 at Dec 31, 2016) • The 125 M€ credit line is extended to mid-2021 and is fully available 140 0 120 -0.2 100 -0.4 80 -0.6

  20. Slide 20: Axway shareholder structure

    Axway shareholder structure 31/12/2016 21 021 354 SHARES OUTSTANDING 33 977 278 VOTING RIGHTS Odin Sopra Steria Pasquier Sopra Auto Family Managers Caravelle Public Group Family GMT Détention Shares Outstanding 32.9% 0.1% 1.4% 1.7% 21.4% 12.2% 30.2% 0.04% Voting rights 3.,4% 0.1% 1.5% 1.7% 26.2% 15.

  21. Slide 21: Finance at a glance

    Finance at a glance Strong increase in Profit on Operating Activities 16.9% of Revenue Solid ending cash 51,7 €M Solid Annual Results for 2016 with organic growth up by 4.4% © 2017 Axway | CONFIDENTIAL 21

  22. Slide 22: Axway Shareholder Structure / Mid-term Status

    31/12/2015 20,773,916 SHARES OUTSTANDING 35,538,163 VOTING RIGHTS Axway Sopra Pasquier Odin Geninfo Treasury Shareholder Managers Sopra GMT Caravelle Public Steria Family Family (SG Group) Shares Structure Shares outstanding 24.9% 0.1% 1.4% 1.7% 21.6% 8.6% 12.3% 28.9% 0.2% Mid-term Status Voting Rig

  23. Slide 23: Charles Darwin quote on adaptability

    “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 © 2017 Axway | CONFIDENTIAL 23

  24. Slide 24: Digital disruption continues to test the ingenuity and agility of most enterprises

    Digital disruption continues to test the ingenuity and agility of most enterprises 900B 80% 200B $1T HOURS SPENT MOBILE COVERAGE CONNECTED IN IoT SPENDING INSIDE MOBILE IN THE DEVELOPED DEVICES DRIVEN BY 2020 APPS IN 2016 WORLD BY THE IOT 90% $79B CARS CONNECTED SMART HOME BY 2020 INDUSTRY © 2017 Ax

  25. Slide 25: Platform Domination

    Platform Domination The Services Consumption Revolution © 2017 Axway | CONFIDENTIAL 25 25

  26. Slide 26: Our Heritage

    Our Heritage Born out of innovative solution to help solve tough data challenges 301 262 224 Revenue m€ 208 171 117 70 74 2002 2004 2006 2008 2010 2012 2014 © 2017 Axway2016 | CONFIDENTIAL 26

  27. Slide 27: The New Transformed Axway

    The New Transformed Axway Revenue m€ Axway Amplify Platform 2016 Moving © 2017 Axway Forward | CONFIDENTIAL 27

  28. Slide 28: A Powerful Digital Innovation Workspace

    A Powerful Digital Innovation Workspace Axway AMPLIFY Platform Users DevOps-Ready Data Access Business Intelligence APIs & Connectors Integrate with Applications & Databases Leverage SOA, B2B and MFT infrastructure Developers Suppliers Big Data Hadoop & Elastic Search Cross-Platform Advanced Connect

  29. Slide 29: Artificial Intelligence, Machine Learning & Robotics

    Artificial Intelligence, Machine Learning, & Robotics Transforming Experiences © 2017 Axway | CONFIDENTIAL 29 29

  30. Slide 30: Big Data Analytics Augmented Reality

    Big Data Analytics Augmented Reality Improving Experiences © 2017 Axway | CONFIDENTIAL 30 30

  31. Slide 31: Tsunami Internet of Things

    Tsunami Internet of Things Connecting Experiences © 2017 Axway | CONFIDENTIAL 31 31

  32. Slide 32: EFSS Opportunity

    EFSS Opportunity • Over the past 3 years market of EFSS has grown at over 20%+ year over year • IDC forecasts EFSS DIGITAL DIGITAL MTF enterprise market to grow MTF to $1.8 billion +17% in 2017 Aggregate Market1 $7.7billion $5,908M +20% +19% © 2017 Axway | CONFIDENTIAL 32

  33. Slide 33: Strengthening Axway leadership in secure file exchange

    Strengthening Axway leadership in secure file exchange MFT EFSS DIGITAL MFT System Centric Human Centric Digital Shared Services • Managed file transfer for • Access anywhere, anytime • Enhances AMPLIFY™ applications and/or from any device platform integration partners foundation • Secure and easy s

  34. Slide 34: Forrester Wave: Enterprise File Sync And Share, Q2'16

    Forrester Wave: Enterprise File Sync And Share, Hybrid Solutions, Q2'16 The Forrester Wave ™: Enterprise File Sync And Share Platforms, Hybrid Solutions, Q2 2016, Forrester Research, Inc., April 26, 2016 © 2017 Axway | CONFIDENTIAL 34

  35. Slide 35: Axway business plan ambition & strategy

    Axway business plan ambition & strategy • Preserve margins before acquisition while investing in innovation 16,9%, 17.7% R&D, AMPLIFY, Golden Gate, API © 2017 Axway | CONFIDENTIAL 35

  36. Slide 36: Axway business plan ambition & strategy

    Axway business plan ambition & strategy • Preserve margins before acquisition while investing in innovation • Keep our historic leadership in France, while focusing on Digital Stable Revenue, 80% growth in Digital, +16%Q4 © 2017 Axway | CONFIDENTIAL 36

  37. Slide 37: Axway business plan ambition & strategy

    Axway business plan ambition & strategy • Preserve margins before acquisition while investing in innovation • Keep our historic leadership in France, while focusing on Digital • Target 20% growth in software revenue in the USA +23.4% software revenue growth in the USA © 2017 Axway | CONFIDENTIAL 37

  38. Slide 38: Axway business plan ambition & strategy

    Axway business plan ambition & strategy • Preserve margins before acquisition while investing in innovation • Keep our historic leadership in France, while focusing on Digital • Target 20% growth in software revenue in the USA • Achieve average annual growth of 30% Digital revenue +53% Digital (API,

  39. Slide 39: Axway business plan ambition & strategy

    Axway business plan ambition & strategy • Preserve margins before acquisition while investing in innovation • Keep our historic leadership in France, while focusing on Digital • Target 20% growth in software revenue in the USA • Achieve average annual growth of 30% Digital revenue • Active M&A plan

  40. Slide 40: Q&A

    Q&A © 2017 Axway | CONFIDENTIAL

  41. Slide 41: Q&A Thank You

    Q&A THANK YOU www.investors.axway.com/en Mobile App: Axway IR available on Apple store & Android

Axway — FY2016 Earnings Presentation on 6ix