Slide 1: TXT e-solutions Corporate Presentation
TXT e-solutions Corporate Presentation March 2015
Slide 2: 2014: Another year of Growth
2014: Another year of Growth Revenues: 55.9 m€ (+6.3%), 57% from Int’l Operations EBIT: 5.5 m€ (+10%) Cash Flow from Op. 9.3% of Revenues NFP: 8.5m€ (+ Treasury shares worth approx. 12 m€) 5 years CAGR +11% p.a. 5 years CAGR +25% p.a. 2
Slide 3: 2010–2014: Growing EBITDA Margin & Rising the bar of Investments
2010 – 2014: Growing EBITDA Margin & Rising the bar of Investments R&D Investments: strengthen leadership: - 2010: 2,5 m€ - 2014: 4.7 m€ Commercial Investments: foster Int’l growth: - 2010: 7,4 m€ - 2014: 11.1 m€ 3
Slide 4: TXT Group: Major Growth & Emerging Opportunities
TXT Group: Major Growth & Emerging Opportunities 39% +7,7% vs. 2013 61% +4,2% vs. 2013 International Software Vendor Advanced System Integration Major Growth & Profit Opportunity, through Mature Business, Int’l growth possible direct investments & acquisitions: Retail through acquisitions: Aerospace
Slide 5: TXT Retail – Major Growth & Profit opportunity for TXT Group
TXT Retail – Major Growth & Profit opportunity for TXT Group Strategy - Global leader in: Software Retail Planning solutions for Fashion, Luxury & Specialty 37% Services Retailers: end-to-end, from collection to stores 63% Hong-Kong Spain APAC 2% North Am. Italy 2% 13% 13% Other Int'l Germany 12% 18
Slide 6: Unique, Growing Customer Base of 300+
Expertise across categories & channels: Unique, Growing Customer Base of 300+ - 15 New Major Customers in last 12 months; 50+ Go-Lives of Major Projects … - … across all Segments & Geographies Luxury Global Brands Fast Fashion Mixed Goods Luxury Fast Fashion Fast Fashion Global Brands 6
Slide 7: TXT Retail - Value Proposition: From Unique Offering to AgileFit
TXT Retail - Value Proposition: From Unique Offering to AgileFit End-to-End Retail: AgileFit: «Assortments Planned for Success» «Global Best Practices, Fitted to your Strategic Needs, Fast» Key Customer Benefits: improve sales & margin Key Customer Benefits • More accurate & consistent planning, fas
Slide 8: TXT Retail - Competitive Position: Leadership in the Target Markets
TXT Retail - Competitive Position: Leadership in the Target Markets Recognised leader in Fashion, Luxury & Specialty Retail: a static and obsolete competitive landscape, with high barriers to entry Strenghts according to Gartner Cautions according to Gartner Gartner assessment across ALL types of me
Slide 9: TXT Retail - Commitment to Innovate: Lowering barriers to adoption
TXT Retail - Committment to Innovate: 4.7 m€ invested in Product Development • Lowering barriers to adoption – Outstanding Usability – Mobility: PLM & Planning on any device, anywhere – Total Cost of ownership: TXT On-Cloud 9
Slide 10: TXT Retail - Commitment to Innovate: Technology & Functional Evolution
TXT Retail - Committment to Innovate: 4.7 m€ invested in Product Development • Technology & Functional Evolution – Unique Scalability & Performance with In-Memory Technology – Collaborative Planning based on Simulation & Analytics capabilities – Leveraging on Global Technology Partnership 10
Slide 11: TXT Retail - Growth Path: Strategy & Drivers
TXT Retail - Growth Path: Strategy & Drivers Baseline organic growth, accelerated through targeted acquisitions, sustained by continuous investments in product & business process innovation, self-financed through Profit & Cash generated by the business & growing Stock value Geographical 2000-2012 20
Slide 12: CPG & Manufacturing: Setting the Stage for Future Profitable Growth
CPG & Manufacturing: Setting the Stage for Future Profitable Growth • Approx. 7 m€ in 2014; • Value Proposition: Demand Planning • ~100 Key References across Europe – Sales & Operations Planning Advanced – Supply Chain Supply Procurement & Planning Collaboration Supply Chain Collaboration Production
Slide 13: TXTNext - Aerospace & High Tech: The Engineering Division of TXT Group
TXTNext - Aerospace & High Tech: The “Engineering Division” of TXT Group In-depth Industry Know-how: Since 30 years Partner for our clients to boost their engineering capabilities « Inside!» THROUGHOUT THE ENTIRE VALUE CHAIN AUTOMOTIVE & AEROSPACE HIGH TECH TRANSPORTATION TRAINING & EMBEDDED DIGITAL
Slide 14: TXT Next: Strategy & Drivers
TXT Next: Strategy & Drivers Healthy & profitable growth around the «as-is» perimeter, building on a baseline revenues stream from long-lasting relationships with core clients, and targeting International opportunities, both organically & through Acquisitions. Geographical 2010-2014 2000-2010 2015
Slide 15: Banking & Finance: Setting the Stage for Future Profitable Growth
Banking & Finance: Setting the Stage for Future Profitable Growth • Approx. 6 m€ in 2014; market focus: Italy • Core Offering: Italian leadership in • A growing customer base of mid-large Banks – Independent Testing of Software: from functional & performance testing to mobile • Long-lasting relation
Slide 16: TXT in 2014, 2015 & beyond
TXT in 2014, 2015 & beyond … • TXT Retail – A dynamic, large & growing Global Market, a sustainable leadership position (Products, Team & Customer Base), multiple drivers of growth – 2014: further consolidated Europe, significantly strengthened North America (Brand recognition, Team & Customer Base)
Slide 17: Appendix – Financial Details
APPENDIX – FINANCIAL DETAILS
Slide 18: 2014 Financial highlights
2014 Financial highlights Revenues: € 55.9 million (+ 6.3%) +3.5% net of non-recurring revenues of € 1.5m TXT Perform grew +7.7%; TXT Next grew +4.2%, 57% of revenues from outside Italy. EBITDA: € 6.6 million (+8.4% compared to 2013). Commercial investments (+9% compared to 2013) for hea
Slide 19: 2014 – Growth of Revenues, EBIT & Investments
2014 – Growth of Revenues, EBIT & Investments € thousand 2014 2013 Var % % % REVENUES 55.878 100,0 52.560 100,0 6,3 Direct costs 26.455 47,3 24.854 47,3 6,4 GROSS MARGIN 29.423 52,7 27.706 52,7 6,2 Research and Development costs 4.698 8,4 4.761 9,1 (1,3) Commercial costs 11.094 19,9 10.174 19,4 9,0
Slide 20: Strong Balance Structure
Strong Balance Structure € thousand 31.12.2014 31.12.2013 Var Intangible assets 15.079 15.370 (291) Tangible assets 1.249 1.118 131 Other fixed assets 1.692 1.362 330 Fixed Assets 18.020 17.850 170 Inventories 1.821 1.451 370 Trade receivables 18.571 16.840 1.731 Other short term assets 2.197 1.802
Slide 21: Dividends & Shareholder's Return in the last Years
Dividends & Shareholder‘s Return in the last 4 Years • 2011: 1 € /share (extraordinary, rebased) • 2012: Free Share Distribution 1:1 • 2013: 0.20 € /share (rebased) Dividends • 2014: Free Share Distribution 1:1 • 2014: 0.25 € / share • 2015: Free Share Distribution 1:10 • 2015: 0.25 € / share • 31.1
Slide 22: TXT Market Capitalization (m€)
TXT Market Capitalization (m€) Free share distribution 1:10 Free share distribution 1:1 Free share distribution 1:1 Dividend 2.6m€ Dividend 2.6m€ Dividend 2.1m€ Dividend 10.3m€ 22
Slide 23: Shareholding Structure 31.12.2014
Shareholding Structure 31.12.2014 Management A. Braga Illa 8.3% 13.8% Market 40.7% E-Business Consulting 25.1% Treasury Shares 12.1% 23