Slide 1: Star Conference 2013
Star Conference 2013 Marco Guida, CEO March 26, 2013 Confidential and Proprietary March 26, 2013
Slide 2: Table of Contents
Table of Contents • TXT Perform A unique offering - “Integrated Planning” for Fashion Retail – in a large, int’l market • TXT Next Innovative capabilities in niche markets: seeds for tomorrow’s growth TXT • Profitable growth in a tough market … a successful • Outstanding stock performance since inte
Slide 3: From our 3-years Business Plan …
From our 3-years Business Plan … March 26, 2013
Slide 4: Organic Growth: 2012 Results in line with Plans
Organic Growth: 2012 Results in line with Plans FY 2012 - In line with Business Plan Targets Revenues: 46,5 m€ (+16% vs. 2011) • of which 24,6 m€ International EBITDA: 5,3 m€ EBIT from Operations: 4,2 m€ (vs. 0,9 m€ in 2011) NFP: 3,2 m€ (Net Fin. Avail.: 6 m€) 43% Integrated Planning & 57% A
Slide 5: TXT Perform – Growing Int’l Presence
TXT Perform – Growing Int’l Presence Internationalisation Other Italy Int'l 15% France 25% 15% Germany Spain 18% 4% UK 23% Focus & Specialisation: Integrated Planning for Fashion Retail Industrial S&OP 15% Fashion PLM 10% Integrated Retail Planning 75% March 26, 2013
Slide 6: TXT Perform – Industry Focus & Specialisation
TXT Perform – Industry Focus & Specialisation Non-Food Retail across Product Categories & Channels • Fashion, Luxury & Specialty Retail: well performing despite crisis • Tier-1 Clients: larger deals; recurrent revenues streams • Complex problems & «mature» clients: higher prices March 26, 2013
Slide 7: TXT Perform – Footprint Focus & Specialisation
TXT Perform – Footprint Focus & Specialisation A unique offering: End-to-End Integrated Planning Customers’ planning core processes Broader & Deeper in our core verticals Modular & Integrated: start small & upscale March 26, 2013
Slide 8: 2012: Growing Int’l Customer Base
2012: Growing Int’l Customer Base 20+ New Wins across Segments & Regions FASHION LUXURY MIXED HARDLINES Company: global footwear brand and retailer. HQ in Company: London HQ, Company: HQ in France, Largest optical retailer in Spain. luxury brand with All Fashion segments. Germany, part of operations
Slide 9: TXT Perform – International Leadership
TXT Perform – International Leadership Fashion, Luxury & Retail TXT Market share in core markets: #1 in Core Functional Scope ~ 15% in Europe #3 Overall (Functionality & Market Presence) ~ 5% “W-wide” March 26, 2013
Slide 10: TXT Perform: A big Market Opportunity
TXT Perform: A big Market Opportunity Integrated Retail Planning – A large, growing Market • Integrated Planning for Retail • Tier-1 / Tier-2 Retailers: – A Large Market: 300+ m€ Lic. – I, F, D, UK, E: ~ 500 – 5% CAGR in next few years – Rest of West-EU + East-EU: ~ 250 – Fragmented: specialised / n
Slide 11: The Strategic Opportunity for TXT Perform
The Strategic Opportunity for TXT Perform An «empty space» in the Market for a mid-sized (50100 m€), Highly Specialized, yet Global & Self-financed software vendor – Few, very large (>500 M$), global but generalist players: can «buy» specialization, but it rapidly dilutes & disappears! – Very sma
Slide 12: From European to Global Leadership
From European to Global Leadership 7,2 m€ Revenues, 65 people, with Operations in North America, Australia & UK; 1,2 m€ Net Income; No Debts; 50 Global Customers March 26, 2013
Slide 13: The Combined Entity
The Combined Entity A leapfrog qualitative jump in positioning, filling the «Empty Space» in the Market • Highly specialised Retail Planning software vendor • Innovative • Global, with additional offices in Toronto, Sydney and Leicester (UK) a «3+ times» larger market reach • Self-financed Becom
Slide 14: TXT Perform – Longer-term upside Opportunity
TXT Perform – Longer-term upside Opportunity Current TXT Perform Revenue Split Integrated Retail Planning 75% Fashion PLM Integrated 10% S&OP 15% • Integrated Sales & Operations Planning – Many industry segments increasingly «fashionable» – A very large, rapidly maturing, cross-industry market – Fas
Slide 15: TXT Perform – Integrated S&OP
TXT Perform – Integrated S&OP Food, Beverage, Cosmetics & “consumerizing” industry segments • Integrated Planning footprint from the most challenging Retail industry segments: – Fragmented – Global – Fast • A 50+ Int’l customer base • 4 New global wins in 2012 March 26, 2013
Slide 16: Innovation: Accelerated Results in 2012
Innovation: Accelerated Results in 2012 From 2012 Presentations … • 2012 – 4,1 m€ invested in R&D – 8 Product Releases (Planning & PLM) 3 new product launches at the «Thinking Retail!» (London, March 21st 2013) • «TXT on Cloud»: TXT’s Planning & PLM solutions deployed on Cloud • «TXT Mobile Platfo
Slide 17: TXT Next: Consistently Profitable & Cash Positive
TXT Next: Consistently Profitable & Cash Positive • 2 Markets: • Aerospace & High-Tech Manufacturing since 1985 • Banking & Finance since 1995 Total TXT Next: 20,2 m€ TRI 6% B&F A&HT 25% 69% • An “Engineering” Company, with a sustainable competitive advantage: • Specialized, value-added IT, consulti
Slide 18: Leader in Aerospace & High-Tech Manufacturing
Leader in Aerospace & High-Tech Manufacturing Since 25+ years, One-stop-shop for Aerospace & High-Tech Examples • EH101 On-Board SW: since 1985 • In-car MM Devices: since 2000 Leader in Italy: • Control Systems: since 1994 5-7% Market Share in • Digital Manufacturing: since 2000 System Engineering •
Slide 19: Banking & Finance: a niche player
Banking & Finance: a niche player Target Market: Italy • Mid-Large Banks • On-line Banks • Financial Institutions Technologi cal Services & Testing Software Develop. ’90s 2000 2010 Examples • IT Governance: «Test Factory» since 2011 • Analysis & Design of Front-End apps. since 1999 • IT Governance
Slide 20: Appendix
Appendix Financial Details March 26, 2013 Confidential and Proprietary March 26, 2013
Slide 21: 2012 Revenues and Margins improvement
2012 Revenues and Margins improvement 2012 % 2011* % Var 12/11% € thousand In 2012: REVENUES 46.499 100,0 40.138 100,0 15,8 Revenues: +15.8% Direct costs 22.351 48,1 19.522 48,6 14,5 (+12.5% organic) GROSS MARGIN 24.148 51,9 20.616 51,4 17,1 Int’l Revenues stand at 53% R & D costs 4.091 8,8 2.80
Slide 22: Strong balance structure
Strong balance structure Total of which of which 31/12/2012 31/12/2011 € thousand variance Maple Lake TXT Intangible assets 19.866 6.561 13.305 13.973 (668) Tangible assets 1.154 819 335 241 94 Other fixed assets 795 355 440 117 323 Non current Assets 21.815 7.735 14.080 14.331 (251) Inventories 1.3
Slide 23: TXT Group – Shareholding Structure
TXT Group – Shareholding Structure Managem. N. Coulton; & Key • Support of Treasury 3,2% People; 7,2% Stock Purchase Plan, authorised up A. Braga to 20% Illa; 13,9% Market; E-Business 34,8% • Dividend 2012 Consulting; (0,40€ /share): 27,1% – 30% of Net Income Own from operations Shares; 11,1% – 100%
Slide 24: TXT – Share Performance
TXT – Share Performance 2013 Performance +24% 2012 Performance +46% March 26, 2013
Slide 25: Why invest in TXT ?
Why invest in TXT ? • International profile: 50+% of Revenues from Int’l markets • Strong Revenues, Profit & Cash growth in 2011 & 2012 • Large fidelised customer base of 350+ blue-chip fashion & luxury retailers: a key asset in «bad times»! • Solid presence in large markets with very high growth po