Slide 1: HY2015 Results
HY2015 Results Jean-Marc Lazzari Chief Executive Officer 30 July 2015 1
Slide 2: Speakers
Speakers Jean-Marc Lazzari Patrick Donovan Chief Executive Officer Chief Financial Officer 3
Slide 3: Semester Overview
Jean-Marc Lazzari Chief Executive Officer Semester Overview 4
Slide 4: HY 2015: Key Figures
HY 2015: Key Figures Total Growth +17.6% Revenue (€M) 114.9 (+5.7%) 135.1 (+4.3%) 2014 2015 Profit from business activity (€M) 5.4 (4.7%) 12.7(9.4%) 2014 2015 Net Profit (€M) 2.8 (2.4%) 2.3 (1.7%) 2014 2015 5
Slide 5: HY 2015 in a Nutshell
HY 2015 in a Nutshell France USA API Cloud Strong First signal of Main Strong booking and performance business rebound growth driver Revenue Growth driven by Still underpenetrated Deployment with Axway 5 Suite our partners: - Amazon - Local operators Correct Q1, Better Q2 Axway delivers a solid firs
Slide 6: Half Year 2015 Analysis
Half Year 2015 Analysis 7
Slide 7: HY 2015: Revenue by Region
HY 2015: Revenue by Region 2014 2014 Total Organic [€M] 2015 Published Pro forma Growth Growth1 France 47.5 42.7 43.2 9.8% 9.7% Rest of Europe 31.6 29.0 32.4 8.7% (2.5)% Americas 49.6 38.8 48.6 27.7% 2.0% Asia/Pacific 6.5 4.3 5.2 51.4% 24.8% Axway 135.1 114.9 129.5 17.6% 4.3% (1) At constant exchang
Slide 8: HY 2015: Revenue by Activity
HY 2015: Revenue by Activity 2014 2014 Total Organic [€M] 2015 Published Pro forma Growth Growth1 Licenses 34.2 27.8 31.8 22.9% 7.4% Maintenance 68.0 57.4 65.0 18.5% 4.7% Services 32.8 29.6 32.6 10.8% 0.6% Axway 135.1 114.9 129.5 17.6% 4.3% (1) At constant exchange rates and on a like-for-like basis
Slide 9: Q2 2015: Revenue by Region
Q2 2015: Revenue by Region Q2 2015 2014 2014 Total Organic 2015 [€M] Published Pro forma Growth Growth1 France 25.4 24.6 22.8 3.0% 11.4% Rest of Europe 17.2 15.0 16.9 15.2% 2.2% Americas 26.4 20.9 25.7 26.2% 2.7% Asia/Pacific 3.4 2.3 3.0 46.4% 13.4% Axway 72.5 62.8 68.4 15.4% 6.0% (1) At constant ex
Slide 10: Q2 2015: Revenue by Activity
Q2 2015: Revenue by Activity Q2 2015 2014 2014 Total Organic 2015 [€M] Published Pro forma Growth Growth1 Licenses 20.6 17.0 18.7 21.1% 10.3% Maintenance 34.5 30.7 33.5 12.5% 3.1% Services 17.3 15.1 16.2 14.4% 6.7% Axway 72.5 62.8 68.4 15.4% 6.0% (1) At constant exchange rates and on a like-for-like
Slide 11: Axway: Balanced and Resilient Business Model
Axway: Balanced and Resilient Business Model HY 2015 BY REGION BY ACTIVITY France Rest of Europe Services Licenses 35% 23% 24% 26% 5% 37% 50% Asia/Pacific Americas Maintenance 12
Slide 12: Headcount at End of June 2015
Headcount at End of June 2015 1926 FRANCE 692 USA 411 13
Slide 13: Signatures: Evolution of the Demand
Signatures: Evolution of the Demand Traditional Convergence Pure Business Traditional Business New Business MFT & B2B MFT/B2B Digitalization New Business 14
Slide 14: Accounting & Financial Results
Patrick Donovan Chief Financial Officer Accounting & Financial Results 15
Slide 15: Income Statement (1/2)
Income Statement (1/2) • Improved Profit on Operating Activities of 9.4 % from 4.7 % through License and Maintenance revenue growth while containing costs • Costs growth due to foreign currency impact on conversion and the addition of one quarter of Systar costs In millions of euros HY 2015 HY 2014
Slide 16: Income Statement (2/2)
Income Statement (2/2) • Operating Profit impacted by 8.1 M€ restructuring charge • Restructuring charge to rationalize our activities after years of acquisitions, primarily in our R&D and Sales areas • Amortization increased with addition of Systar intangible assets In millions of euros HY 2015 HY
Slide 17: Simplified Balance Sheet (1/2)
Simplified Balance Sheet (1/2) • Goodwill increased from the currency impact on conversion of US Dollar balance sheet • Cash balance strong at 41.7 M€ with full credit facility available • DSO — 80 days at 30 June 2015 In millions of euros 30/06/2015 31/12/2014 30/06/2014 ASSETS Goodwill 247.9 236.5
Slide 18: Simplified Balance Sheet (2/2)
Simplified Balance Sheet (2/2) • No borrowings under 125 M€ RCF at 30 June 2015 • Other current liabilities includes 81.8 M€ of deferred income In millions of euros 30/06/2015 31/12/2014 30/06/2014 SHAREHOLDERS' EQUITY AND LIABILITIES Share capital 41.2 41.1 41.1 Capital reserves and results 266.4 2
Slide 19: Change in Equity
Change in Equity • Due to the USD/Euro conversion rate movement a significant translation adjustment was recorded in 2014 and first half 2015 on the conversion of the foreign balance sheets to Euros In millions of euros 30/06/2015 31/12/2014 30/06/2014 Equity at Opening of Period 298.5 258.4 258.3 P
Slide 20: Cash Flow Statement
Cash Flow Statement • Working Capital Requirements — normal cyclical affect in first half due to cash recovery on year- end sales and maintenance renewals • Free cash flow for the first half of 2015 is 34.4 M€ • Dividend payment declared in June 2015, paid in July 2015 — out of first half In million
Slide 21: Financial Structure — Covenants 2015
Financial Structure — Covenants 2015 • Financial covenants met in all periods, net treasury for first half of 2015 is 31,5 M€ • Our main covenant is the leverage ratio: Net debt/EBE ≤ 3 (-0,84 at June 30, 2015) • The 125M€ credit line is extended to mid-2020 and is fully available In millions of eur
Slide 22: Good Overall Financial Performance Enabling Axway to Invest in its Future
Good Overall Financial Performance Enabling Axway to Invest in its Future Total growth above 17% Operating margin on business activity at 9.4% vs 4.7% Net Treasury >30M€ with healthy cash flows this period (Net debt<0) 1HY 2015 versus 1HY 2014 23
Slide 23: Strategic Direction
Jean-Marc Lazzari Chief Executive Officer Strategic Direction 24
Slide 24: Axway's H2 Focus
Axway’s H2 Focus DELIVER DELIVER STRONG STRONG RESULTS RESULTS RE-THINK & RE-POSITION TRANSFORM & ALIGN 25
Slide 25: RE-THINK & RE-POSITION
RE-THINK & RE-POSITION RE-THINK & RE-POSITION TRANSFORM & ALIGN 26
Slide 26: 2011: Axway Enabled Critical Business
2011: Axway Enabled Critical Business We provide market leading software and services that empower our customers to govern the flow of data that drive business critical interactions Human Partner Interactions Communities Business Critical Engagement Data Flow Management Visibility & Operational Part
Slide 27: Digital Business
Digital Business Human Partner Interactions Communities Mobile and Cloud Internet of Things Services 28
Slide 28: Digital Business Requirements
Digital Business Requirements Meeting expectations of suppliers, customers and partners requires increased digital interaction Creating new revenue streams requires exposing new services while leveraging existing systems App strategy and resulting integration strategy requires a bimodal approach to
Slide 29: Digital Business
Digital B2C & B2E Business Web B2B Mobile Cloud Services Digital “Things” Enablement Govern Design Deploy Adopt Monetize Data Apps Application Identity Integration Federation API Marketplace Management Business Application Process Management Services Delivery B2B Cybersecurity Operational Integratio
Slide 30: 2015 Axway's Vocation
2015 Axway’s Vocation Enabling your digital business by connecting people, processes and things while governing data flows throughout your ecosystem 31
Slide 31: Potential Digital Enablement
Potential Digital Enablement B2B B2C & B2E Mobile Cloud Services “Things” Digital Engagement API Developer Operational Portal Intelligence Partner Mgmt API Gateway & On-boarding Digital Foundation Visibility & B2B Analytics Central MFT Governance 32
Slide 32: Axway's Digital Business Heritage
Axway’s Digital Business Heritage Proven Recognized “Edge” Proven Digital Digital Focus Track Business Foundation on multi-enterprise Record integration as the Success Leader epicenter of the of addressing enterprise with a global with MFT, B2B/EDI entire ecosystem scale, legacy customer base and AP
Slide 33: Data Flow Governance Differentiation
Data Flow Governance Differentiation Total Complete Assured Interaction Visibility Control Security & Partners …become … define and …comply with …manage B2B proactive by enforce policies to industry and interactions, anticipating ensure government ease partner problems and consistency across regulat
Slide 34: Competitive & Market Landscape
Competitive & Market Landscape Generalists Digital Foundation Traditional Middleware and API Management Integration Providers Specialists Specialists Cloud Integration and Integration Brokerages Digital Engagement 35
Slide 35: TRANSFORM & ALIGN
TRANSFORM & ALIGN DELIVER STRONG RESULTS RE-THINK & RE-POSITION TRANSFORM & ALIGN 36
Slide 36: Potential Digital Enablement Markets
Potential Digital Enablement Markets B2B B2C & B2E Mobile Cloud Services “Things” Digital Engagement API Developer Operational Portal Intelligence Partner Mgmt API Gateway & On-boarding Digital Foundation Visibility & B2B Analytics Central (1) Axway estimates based on a MFT combination of Market Ana
Slide 37: Potential Digital Enablement Markets
Potential Digital Enablement Markets B2B B2C & B2E Mobile Cloud Services “Things” Digital Engagement API Developer Operational Portal Intelligence Aggregate API Gateway Partner Mgmt & On-boarding Market1 $5,908M +20% Digital Foundation B2B Aggregate Visibility & Analytics Market1 $3,938M MFT +12% Ce
Slide 38: Go-to-Market Strategy
Go-to-Market Strategy US, UK, Germany France Rest of World Invest Expand Maintain for growth in large, market share through cross- our strong global footprint with underpenetrated markets selling and up-selling in our market-specific strategies extensive customer base • Leverage improved sales effic
Slide 39: Axway on the Road of Transformation
Axway on the Road of Transformation Strengthened Product Management • Hired new head of Product Management • Created a Chief Digital Officer position • Focused on Digital Enablement • Implement a bi-model approach Sales Transformation • Continued strengthening of Sales Organization (NA mainly) • Sol
Slide 40: To Wrap Up…
To Wrap Up… DELIVER STRONG RESULTS RE-THINK & RE-POSITION TRANSFORM & ALIGN 41
Slide 41: Thank You Questions & Answers
Thank You Questions & Answers Investor Relations Patrick Gouffran pgouffran@axway.com Tel +33 (6)85924991 www.investors.axway.com 42