Descartes Systems Group Inc. · TSX:DSG
Descartes Systems — The Descartes Systems Group — Investor Presentation (September 2012)
22 slides from Descartes Systems's investor presentation, Sep 6, 2012
Slide 1: Descartes – Uniting Business in Commerce
“Helping customers deliver” Descartes – Uniting Business in Commerce September 6, 2012 : DSGX : DSG Proprietary and Copyright of The Descartes Systems Group Inc. All rights reserved.
Slide 2: Safe Harbor
Safe Harbor Certain statements made today and in this presentation including, but not limited to, statements relating to our future operating performance; software-as-a-service business model; strategy, market opportunity and vision; Descartes’ position and opportunity to lead its industry with its
Slide 3: Agenda – Uniting Business in Commerce
Agenda – Uniting Business in Commerce • Proven Record of Execution • Defined Mission – Relevant Vision – Ingrained Culture • A Defined Plan • Defined Strategic Plan • Defined Go-to-Market Strategy • Key Metrics Proprietary and Copyright of The Descartes Systems Group Inc. All rights reserved.
Slide 4: Proven Record of Execution: Adjusted EBITDA per Share
Proven Record of Execution Defined Adjusted EBITDA per Share metrics used for planning: Target: 10-15% annual growth Actual: 26% CAGR over 7-year period 0.40 First 5-Year Plan 0.70 Second 5-Year Plan Adjusted EBITDA per Share Adjusted EBITDA per Share 0.35 0.60 0.30 >66% 0.50 0.25 0.40 Actual
Slide 5: Proven Record of Execution
Proven Record of Execution Millions “Adjusted EBITDA” is a non-GAAP financial measure provided as a complement to GAAP financial measures to help investors understand operational trends in our business. However, Adjusted EBITDA should not be used in preference to our instead of any GAAP financial me
Slide 6: Mission – Unite Business in Commerce
Defined Mission – Unite Business in Commerce Making the world a better place through logistics by improving the productivity, efficiency and security of commerce Proprietary and Copyright of The Descartes Systems Group Inc. All rights reserved.
Slide 7: Relevant Vision – A State of Things United
Relevant Vision – A State of Things United A global community united in commerce via a multi-party platform Proprietary and Copyright of The Descartes Systems Group Inc. All rights reserved.
Slide 8: Ingrained Cultural Framework
Ingrained Cultural Framework O N ne etworked E nterprise L isten E ducate A rticulate R esearch N etwork T ransparency E ntrepreneurial Spirit A ccountability Metrics-focused on results O.N.E. L.E.A.R.N.ing T.E.A.M. Shareholders – Customers – Employees – Partners Proprietary and Cop
Slide 9: A Defined Plan
A Defined Plan • Defined Strategic Plan • Exploit Convergence • Leverage Moore’s and Metcalfe’s Laws • Buy & Build • INVEST to be the BEST • Defined Go-to-Market Strategy • Customers • Innovation • Solution Delivery • Partners Proprietary and Copyright of The Descartes Systems Group Inc. All rights
Slide 10: Strategic Plan – Exploit Convergence; Focus on Congruent Intersection
Defined Strategic Plan – Exploit Convergence; Focus on Congruent Intersection Market Convergence Business Process Convergence My Your GTC SCE Processes Processes Holistic Business Business Third-Party Processes MRM Processes Network & Agility Congruent Intersection Hardware Software SaaS 2.0 Web 2.0
Slide 11: Strategic Plan – Leverage Moore’s and Metcalfe’s Laws
Defined Strategic Plan – Leverage Moore’s and Metcalfe’s Laws Degree of Multi-Standard Encapsulation Moore’s Law: Network-Centric The regular doubling of Content Polymorphic computer capacity Management Business Processes SaaS 2.0 Metcalfe’s Law: The network effect Descartes: On Premise Network desi
Slide 12: Strategic Plan: Buy & Build; Create New Category
Defined Strategic Plan: Buy & Build; Create New Category Descartes has a defined plan to create a new industry category and business model focused on the congruence of 3 markets Descartes’ solutions are delivered through its Logistics Technology Platform Descartes is using a Buy & Build strate
Slide 13: Strategic Plan – INVEST to be the BEST
Defined Strategic Plan – INVEST to be the BEST Fiscal 2013 Focus: INVEST to be the BEST Solutions Operations Partner Relationships People Proprietary and Copyright of The Descartes Systems Group Inc. All rights reserved.
Slide 14: Go-to-Market Strategy (Customers)
Defined Go-to-Market Strategy (Customers) Proprietary and Copyright of The Descartes Systems Group Inc. All rights reserved.
Slide 15: Go-to-Market Strategy – Lead with Innovation
Defined Go-to-Market Strategy – Lead with Innovation Command of Operations Logistics Technology Platform Real-time Routing, Mobile + Telematics Logistics + Customs Network Based Multi -Party Apps Multi-modal Network Time 2004 2005 2006 2010 2011 Proprietary and Copyright of The Descartes Systems Gro
Slide 16: Go-to-Market Strategy – Solution Delivery
Defined Go-to-Market Strategy – Solution Delivery The Fusion of: 1. The Global Logistics Network 2. The industry’s broadest array of modular interoperable web Applications Community and wireless logistics management solutions 3. The world’s most extensive global multi-modal logistics Network communi
Slide 17: Go-to-Market Strategy - Partners
Defined Go-to-Market Strategy - Partners Hardware Partners United by Design Software Ecosystem Academia Partners • Partner with leading hardware providers, software providers and networks Network C.O.I.N.s Providers • Descartes opens its federated network via Open SCIs (Standard Collaborative Interf
Slide 18: Uniting Business in Commerce – How are we Doing?
Uniting Business in Commerce – How are we Doing? Metrics-Driven, Focused on Results Inherent Infrastructure The Global Logistics Network Financial Excellence • 30 consecutive quarters of profitability Retailers • 7 years of record operating Trucking Air Carriers Freight Forwarders results Companies
Slide 19: Strong Quarterly Operating Results
Strong Quarterly Operating Results Summary of Unaudited Results (US$ millions) $ % $ % Q2 Q1 Q2 ∆ ∆ ∆ ∆ 2013 2013 Q/Q Q/Q 2012 YoY YoY Revenues $30.5 $29.9 $0.6 2% $28.8 $1.7 6% Services Revenues $29.3 $27.7 $1.6 6% $26.7 $2.6 10% Services as a % of Revenues 96% 93% 93% Gross Margin 65% 65% 66% Net
Slide 20: Strong YTD Operating Results
Strong YTD Operating Results Summary of Unaudited Results (US$ millions) $ % YTD YTD ∆ ∆ 2013 2012 Y/Y Y/Y Revenues $60.4 $55.9 $4.5 8% Services Revenues $57.0 $52.6 $4.4 8% Services as a % of Revenues 94% 94% Gross Margin 65% 67% Net Income $5.1 $4.8 $0.3 6% Adjusted EBITDA $18.0 $16.0 $2.0 13% Adj
Slide 21: Adjusted EBITDA per Share Progression
Adjusted EBITDA per Share Progression $10.0 $0.16 $9.0 $0.14 $8.0 $0.12 Adjusted EBITDA per Share $7.0 Adjusted EBITDA ($M) $0.10 $6.0 $5.0 $0.08 $4.0 $0.06 $3.0 $0.04 $2.0 $0.02 $1.0 $0.0 $0.00 Adjusted EBITDA Adjusted EBITDA per Share Proprietary and Copyright of The Descartes Systems Group Inc. A
Slide 22: Baseline Calibration
Baseline Calibration Figures are per Qtr Beginning Beginning Beginning Beginning Beginning Beginning of Q4 of Q4 of Q4 of Q4 of Q2 of Q3 FY09 FY10 FY11 FY12 FY13 FY13 Baseline Revenues $15.5 $18.0 $25.0 $27.5 $28.6 $30.8 Baseline Operating $12.2 $13.9 $19.2 $21.0 $21.8 $23.4 Costs Baseline $3.3 $4.1
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