Slide 1: TXT e-Solutions Corporate Overview
TXT e-Solutions Corporate Overview March 2017
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by TXT e-solutions (“TXT”) and is general background information about TXT’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this prese
Slide 3: TXT at Glance: International Software & Services
TXT at Glance: International Software & Services 52% 48% 2016: 36.1m€ 2016: 33.1m€ Fashion, Luxury & Specialty Retail Aerospace & Aviation • Fashion/Luxury & Specialty Retail • Engineering Solutions & Services across • Omnichannel End-to-end Planning the Product Life-cycle and Collection Development
Slide 4: FY 2015 & 2016 Results
FY 2015 & 2016 Results FY 2015 FY 2016 Revenues: 61.5 m€ (+13.1%) 69.2 m€ (+12.4%) Net Income 3.9 m€ 5.6 m€ Free Cash Flow 8.4% of Rev. 12.7% of Rev. NFP: 8.3 m€ 5.4m€ CAGR +12% p.a. CAGR +13% p.a. 4
Slide 5: Fashion, Luxury & Specialty Retail
Fashion, Luxury & Specialty Retail 5
Slide 6: A Major Growth & Profit Opportunity
A Major Growth & Profit Opportunity Strategy - Global leader in: Retail Planning solutions for Fashion, Luxury & Specialty Software Services Retailers: end-to-end, from collection to stores 43% 57% North Am. Italy Other Europe 14% 11% 11% Germany 21% APAC 9% UK & Nordics 13% France 21% 6
Slide 7: Unique Customer Base of 300+
Unique Customer Base of 300+ - 20 New Major Customers and 50+ Go-Lives of Major Projects in 2016… - … across all Segments, Business Models & Geographies 7
Slide 8: Fashion, Luxury & Specialty Retail: Large, Healthy & Transforming Market
Fashion, Luxury & Specialty Reatil: Large, Healthy & Transforming Market 1500 Tier-1 & Tier-2 Omnichannel Retailers across Europe, North America & APAC: how industry transformation impacts Key Business Processes? The Omnichannel Retailers’ «Merchandise Lifecycle»: A strategic & complex End-to-End pr
Slide 9: Growing Demand for a New Generation of Merchandise Lifecycle Management Software
Growing Demand for a New Generation of Merchandise Lifecycle Management Software • The Omni-channel transformation drives growing demand for a new generation of Merchandise Lifecycle Management Software: – Growing complexity: within each key process and in their interactions – Shorter lead-times and
Slide 10: TXT Retail: End-to-End Merchandise Lifecycle Management
TXT Retail: End-to-End Merchandise Lifecycle Management Core to Retailers’ competitive differentiation is the Merchandise Lifecycle, the end-to-end process that encompasses: - Understanding customer needs and opportunities, - Devising a brand and product • Strategic Plan • Assortment Strategy • Tren
Slide 11: TXT Retail: Unique Integrated Software Solution
TXT Retail: Unique Integrated Software Solution The 1st & only End-to-End Merchandise Lifecycle Management Software TXT Retail enables Customer- driven Merchandising Excellence through an End-to-End Merchandise Lifecyle Management Software featuring: Merchandise - A unified database that informs Lif
Slide 12: TXT Retail's AgileFit Deployment
TXT Retail’s AgileFit Deployment: from SW to Business Best Practices «Ready to Go» Mitigate Project Risk Reduce Project Costs Faster Time to Benefits Higher ROI 12
Slide 13: TXT Retail Competitive Position: Recognised Leader in the Target Markets
TXT Retail Competitive Position: Recognised Leader in the Target Markets Key Differentiators End-to End Planning Comprehensive & Complete Flexibility Omni-channel Ready – Change Proof Adoption 2 Hours!, thanks to Excel UI & Mobility Productivity Collaborative, Integrated & In-Memory Planners & Buyer
Slide 14: TXT Retail's Commitment to Innovate: ~5 m€ R&D Investment Each Year
TXT Retail’s Committment to Innovate: ~5 m€ R&D Investment Each Year • Mobility: PLM & Planning on any device, • Scalability & Performance with In-memory anywhere Technology • Total Cost of Ownership: TXT On-Cloud and • Fitting & Planning by images with Cloud-based Managed Services Augmented Reality
Slide 15: TXT Retail: The End-to-End Merchandise Lifecycle Opportunity
TXT Retail: The End-to-End Merchandise Lifecycle Opportunity Competitive Differentiation: We engage in Customer Success !!! IT SPEND FOR MERCHANDISE LIFECYCLE IT SPEND BY TYPE OF SOLUTIONS Keep & Grow Customers !! TXT …conquer the Packaged 10% «Green Prairie».. Solutions 300M$ ERP Extensions, Custom
Slide 16: TXT Retail: Well Positioned to Capture the Opportunity
TXT Retail: Well Positioned to Capture the End-to-End Merchandise Lifecycle Opportunity A largely untapped market: • Spreadsheets • Inadequate Software TXT Retail: the long-awaited answer to Retailers’ needs and priorities 16
Slide 17: TXT Retail: Summary of Strategic Goals & Growth Targets
TXT Retail: Summary of Strategic Goals & Growth Targets Organic growth, targeted acquisitions, innovation in product & business process, self-financed through Profit & Cash generated by the business REVENUE BY INDUSTRY SEGMENT REVENUE BY CUSTOMER TIER REVENUE BY REGION Department Store/Travel Luxury
Slide 18: Aerospace & Aviation
"TXT NEXT Aerospace & Av TXT
Slide 19: TXT Next Target Market: Aerospace & Aviation
TXT Next Target Market: Aerospace & Aviation TXT Next: since 30 years Partner for our Clients to boost their Engineering Capabilities Products & core Processes are highly complex … … calling for cooperation across an extensive network of Specialised Partners R&D and Product Development Support to Cu
Slide 20: Aerospace & Aviation: Large, Healthy, Innovative & Growing Long-term
Aerospace & Aviation: Large, Healthy, Innovative & Growing Long-term Long-term positive trends, despite short-term fluctuations Product Innovation is a must: Large & steadily growing R&D (Product Development & Engineering) investment Budgets 4 recessions 2 financial crises 2 Gulf wars 1 oil shock 1
Slide 21: A Trend To Externalise a Growing Portion of Value-adding Engineering Services
A Trend To Externalise a Growing Portion of Value-adding Engineering Services • A growing portion of R&D/Engineering Budgets, • The Market of externalised R&D/Engineering Services and a growing range of value-adding activities, is set to grow at CAGR 9+% in the next 5 years: are externalised to high
Slide 22: A Longstanding, Global Customer Base across the Value Chain
A Longstanding, Global Customer Base across the Value Chain • A diversified Customer Base of Industry Leaders • Long-term partnership underpinning stable and repeatable revenues streams • A significant up-selling opportunity Aircraft OEMs (Fixed & Rotary Wings) 1st Tier Suppliers & MROs Airlines & L
Slide 23: A Value Proposition Spanning the Entire Product Life-cycle
A Value Proposition Spanning the Entire Product Life-cycle • Breadth and Depth: focus on high-value niches, but understand the whole picture • Technology and Industry expertise, backed by Software Assets 11% 6% PRODUCT DESIGN & DEVELOPMENT PRODUCTION & SALES & PROCUREMENT OPERATIONS CUSTOMER ENGINEE
Slide 24: Engineering Solutions Flexible Engagement Models
Not only People’s Know-how & Experience … Flexible Engagement Models Engineering Solutions From more traditional to innovative ones, People experience with Turn-Key engagements AND weighting ¾ of the total Differentiating software assets 24
Slide 25: 30+ Years in the Industry, 350+ Specialised Engineers
30+ Years in the Industry, 350+ Specialised Engineers A responsive and agile team: local presence, to provide best-in-class on-site support to key customers, backed by corporate competence centers, capable of delivering & supporting customers across 30+ Countries world-wide 25
Slide 26: TXT Next Growth Strategy: Summary
TXT Next Growth Strategy: Summary Solid Foundations Identified Growth Initiatives • 30+ years in the Industry Our Vision: to become an Int’l, specialized, multi-niche, mid-sized (100 m€) provider of Engineering “Solutions” serving the global Aerospace & Aviation Industry • 50+ Customers, industry le
Slide 27: Summary & Financial Details
Summary & Financial Details Confidential & Proprietary 27
Slide 28: Management
Management Alvise Braga Illa – Chairman After graduating at the Polytechnic Institute in Milan, Mr Braga Illa was for 10 years in research and teaching at the Lincoln Laboratory and Massachusetts Institute of Technology, innovating in satellite technology, optical communication and network systems.
Slide 29: The Basis for Success
The Basis for Success • TXT Retail – Global Retail Industry is large, growing & dynamic: e-commerce, new business models, new players – Planning is a «big niche» & a growing investment area for Retailers – TXT has a unique offering and a solid competitive position, sustained by constant innovation –
Slide 30: Why Invest in TXT?
Why Invest in TXT? • International profile: >58% of Revenues from Int’l markets, and growing • Growth in Revenue, Profit & Cash • 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 marke
Slide 31: 2016 – Consolidation of acquisition of Pace GmbH from Q2
2016 – Consolidation of acquisition of Pace GmbH from Q2 € thousand 2016 % 2015 % Var % REVENUES 69.152 100,0 61.540 100,0 12,4 Direct costs 32.039 46,3 29.189 47,4 9,8 GROSS MARGIN 37.113 53,7 32.351 52,6 14,7 Research and Development costs 6.550 9,5 5.118 8,3 28,0 Commercial costs 13.574 19,6 12.6
Slide 32: Strong Balance Structure
Strong Balance Structure Total of which of which € thousand 31.12.2016 31.12.2015 variance Pace GmbH TXT Intangible assets 21.296 14.692 6.604 7.871 (1.267) Tangible assets 1.598 1.361 237 168 69 Other fixed assets 2.534 2.079 455 610 (155) Fixed Assets 25.428 18.132 7.296 8.649 (1.353) Inventories
Slide 33: Dividends & Shareholder's Return 2011-2017
Dividends & Shareholder‘s Return 2011-2017 •Share Price • Dividends •31.12.2010: 1.51€/share (rebased for free •2011: 1 € /share (extraordinary, rebased) share distribution) •2012: Free Share Distribution 1:1 •15.3.2017: 9.66€ /share •2013: 0.20 € /share (rebased) •2014: Free Share Distribution 1:1
Slide 34: TXT Market Capitalization (m€)
TXT Market Capitalization (m€) Free share Free share distribution 1:10 distribution 1:1 Free share distribution 1:1 Dividend 3.5m€ Dividend 2.9m€ Dividend 2.6m€ Dividend 2.6m€ Dividend 2.1m€ Dividend 10.3m€ 34
Slide 35: Shareholding Structure – December 2016
Shareholding Structure – December 2016 Management A. Braga Illa 7,9% 14,0% Market E-Business Consulting 42,0% 25,6% Treasury Shares 10,4% 35