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74software — Axway — Investor Presentation (December 2017)
36 slides from 74software's investor presentation, December 2017
Slide 1: Investors Overview
Investors InvestorsOverview Overview AXWAY AXWAY March 2017 December 2017
Slide 2: Axway: Catalyst for digital transformation - Index
Axway: Catalyst for digital transformation INDEX • Software Digital Transformation • Business Model • Offer • Financial Results 2016 and Latest Publications • Corporate Profile • Perspective © 2017 Axway | CONFIDENTIAL 2
Slide 3: Axway, Catalyst for digital transformation
Axway, Catalyst for digital transformation Rev. €301.1million Named a leader in the Gartner MQ for OPM 16.9% Content Collaboration Platforms. Formerly referred to as Enterprise File FCF/Rev 9.3% Synchronization and Sharing. (July2017) Equity €374 million Axway solutions are deployed by Cash €51 mill
Slide 4: Software Digital Transformation: Market Drivers
Software Digital Transformation MARKET DRIVERS © 2017 Axway | CONFIDENTIAL 4
Slide 5: Axway Market Origin: Infrastructure Software
Axway Market Origin: Infrastructure Software • Software market estimated at $300 billion* Applications software Infrastructure software estimated at $130 billion* estimated at $ 169 billion* • Databases • Accounting • Operating systems • ERP • Network management • Sales management • Storage manageme
Slide 6: Market origin: technology viewpoint
Market origin: technology viewpoint Axway addressable Market ($4 billion ) A A A BPM / BAM Data Application MFT Integration Integration Integration Integration B2B Brokerage (ETL, MDM, …) (ESB, MOM, …) EFSS (VAN ), iPaaS Middleware SOA Governance / API Management A A A
Slide 7: Market evolution: technology viewpoint
Market evolution: technology viewpoint Axway addressable Market ($2 billion ) A A A A Digital Middleware A A A
Slide 8: Digital technology impact: new domains
Digital technology impact: new domains CLOUD DIGITAL DISTRUPTION 2020 Cloud Creates Internet of Things Mobile Spans $240 Billion Drivers 25 Billion 80% of Market Connected Developed World Opportunity Machines INTERNET OF MOBILE THINGS 8
Slide 9: Digital technology impact: B2B and B2C are converging
Digital technology impact : B2B and B2C are converging • Digital transformation is everywhere • Billion of datas • Security • Regulation • Cost optimization • IT rationalization • Business Innovation 9
Slide 10: Competitive & Market Landscape
Competitive & Market Landscape From traditional middleware scope to Platform providers Integration Engagement IaaS © 2017 Axway | CONFIDENTIAL 10
Slide 11: Software Digital Transformation: Axway Offer
Software Digital Transformation AXWAY OFFER © 2017 Axway | CONFIDENTIAL 11
Slide 12: Axway portfolio segmentation
Axway portfolio segmentation INTEGRATION FOUNDATION ECOSYSTEM ENGAGEMENT Managed File Transfer Analytics B2B/EDI Integration API Management Cloud Service Integration Identity Federation & Validation XML & SOA Services EFSS API Gateway Mobile App Development 15
Slide 13: Axway AMPLIFY
Axway AMPLIFY™ Turn Data into Real-time, DevOps-ready Services Cross-Platform App Development DATA INTEGRATION & Unified Engagement with Measure Business User Communities Value of Services ENGAGEMENT PLATFORM Achieve higher levels of efficiency and growth by transforming rigid and manual connections
Slide 14: Leveraging industry-leading products
Leveraging industry-leading products API Management Plus Open up data and engage developers to innovate new experiences Decision Insight Analyze service levels and adoption with real-time, predictive insights Axway Appcelerator Build beautiful apps that delight users with a seamless digital journey
Slide 15: Industry analyst recognition
Industry analyst recognition Leader Leader Leader Strong Performer Pharmaceutical Track Full Life Cycle API API Management API Management and Trace Software Management Solutions Solutions, Q4 2016 Leader B2B Integration Gateway Leader Software Applications Services Strong Performer Governance Mobile
Slide 16: Axway Business Model
Axway Business Model A Catalyst for transformation © 2017 Axway | CONFIDENTIAL 19
Slide 17: Axway Business Model: sources of revenue in 2017
Axway Business Model: 4 sources of revenue in 2017 Services Licenses (Classic Editor) • Perpetual usage rights Associated with the initial installation • Tiered pricing Independent of licence • Standard licensing Service agreement agreement 30% Cloud 46% . Subscription usage ACV or TCV 24% Maintenan
Slide 18: Business Model transformation
6 Business Model transformation Traditional Model – Upfront Sales New Model – Long Tail Sales © 2017 Axway | CONFIDENTIAL 21
Slide 19: Business Model transformation
Business Model transformation Portfolio segmentation INTEGRATION FOUNDATION ECOSYSTEM ENGAGEMENT Managed File Transfer Analytics B2B/EDI Integration API Management Cloud Service Integration Identity Federation & Validation XML & SOA Services EFSS API Gateway Mobile App Development License Subscripti
Slide 20: Balanced and resilient business model FY 2016
Balanced and resilient business model FY 2016 By Region By Activity Product Software 80.84%/R +6.8%growth 31% 23% 26% 27% France Rest of Europe Services Licenses Of which Cloud +26.6% Growth 5% 41% 47% Asia Pacific Americas Maintenance Recurring 53.8%/R +9.9%growth Software 33.34%/R +11.2% growth ©
Slide 21: A composite growth model: organic + acquisition
A composite growth model: organic + acquisition 300 Revenue in €M Appcelerator 2017 2016 250 2012 2008 2014 200 2007 150 2006 2002 100 50 2016 Catalyst for 0 Transformation 1985 - 2000 2001 - 2005 2006 - 2009 2010 - 2012 2015 2016 2017 Incubation within B2B Collaborative Network of Governing Sopra a
Slide 22: Business Model: Business Metrics
Business Model Business Metrics
Slide 23: License Metrics FY 2016 (versus 2015)
License Metrics FY 2016 (versus 2015) Digital Licenses 45% Nb Deals ~1967 Share of Tiers 1 business Share of nb. of deals: 3.2% Share of total amount: 46.6% Share of indirect business partner: 24% Share of New business (€): 10.3% Average Sale Price ASP Tiers 1 ~571K€ ASP Tiers 2 (< 250 k€) ~104€ ASP
Slide 24: License Metrics FY 2016: Share of verticals
License Metrics FY 2016 Share of verticals in License revenues Sectors 2016 2015 17% vs Healthcare Others 21% Supply Chain vs Supply Chain 13% Public Sector vs 42% Public Sector 7% FSI Healthcare vs FSI © 2017 Axway | CONFIDENTIAL 31
Slide 25: Maintenance Metrics FY 2016 (vs 2015)
Maintenance Metrics FY 2016 (vs 2015) 2016 2015 vs Total Value/ Contribution ~1 38M€/49% Attachment rate =21% vs (average weighted by volume) vs Renewal rate1 =92.5% (1) This percentage represents full year revenue impact © 2017 Axway | CONFIDENTIAL 33
Slide 26: Cloud Metrics HY 2017 (vs HY 2016)
Cloud Metrics HY 2017(vs HY 2016) 14.8% Organic growth HY 2017 HY 2016 vs Subscription/Total Revenue 12% vs New ACV 4.3M€ ACV= Annual Contract Value is the signed revenue still to come during the year. New TCV 7.3M€ TCV= Annual Contract Value is the signed revenue still to come during the year. (1)
Slide 27: Latest financial publication
Latest financial publication
Slide 28: Income statement (1/2)
Income statement (1/2) • Continue to see impact of shifting business model with license revenue decrease and cloud increase • Gross Profit as a 66.9% of revenue dropped with falling license revenue, Cloud margin up to 38% and service margin increased to 13% as well • R&D continued to grow in support
Slide 29: Income statement (2/2)
Income statement (2/2) • Profit on Operating Activities finished at 4.2%, a drop from 11.3% in HY 2016 • Increase in intangible amortization relates to assets from Syncplicity • Net Profit finish at 2.6 M€ or 0,12€ per share, similar to S1 2015 and 2014 In millions of euros HY 2017 HY 2016 FY 2016 P
Slide 30: Corporate Profile
Corporate Profile A Catalyst for transformation © 2017 Axway | CONFIDENTIAL 52
Slide 31: Axway shareholder structure
Axway shareholder structure 30/06/2017 21,187,706 SHARES OUTSTANDING Sopra Steria Pasquier Odin Sopra Treasury Managers Caravelle Public Group Family Family GMT Shares Shares Outstanding 32.7% 0.1% 1.4% 1.7% 21.3% 12.1% 30.6% 0.07% Voting Rights 35.1% 0.1% 1.5% 1.7% 26.3% 15.0% 20.2% Concerted actio
Slide 32: Governance
Governance • Strengthened Governance • Board of Directors French-American management: comprising 13 members, of which 7 are independent members 8 top managers coming from the software industry and historical • Pierre Pasquier Chairman corporate management • Kathleen Clark-Bracco Vice Chairman • Comp
Slide 33: Corporate Social Responsibility
Corporate Social Responsibility Organizations & Labels Governance • Global Compact • Board members: CSR Report • 63% independant Download http://www.investors.ax way.com/sites/default/ • 36% women 42% files/csr_report_extract_ • EcoVadis label for • 95% attendance rate registration_document_ axway
Slide 34: Perspective: Shareholder Structure 2015
31/12/2015 20,773,916 SHARES OUTSTANDING 35,538,163 VOTING RIGHTS Axway Sopra Pasquier Odin Geninfo Treasury Shareholder Managers Sopra GMT Caravelle Public Steria Family Family (SG Group) Shares Structure Shares outstanding 24.9% 0.1% 1.4% 1.7% 21.6% 8.6% 12.3% 28.9% 0.2% Voting Rights Perspective
Slide 35: 2017: transformation milestone
2017: transformation milestone • Technology transformation: CLOUD • Digital Engagement scope INTERNET OF MOBILE THINGS • Platform architecture Axway AMPLIFY™ • Business Model transformation: © 2017 Axway | CONFIDENTIAL 59
Slide 36: FY 2017 Outlook
FY 2017 Outlook Keep focusing FY ROA Continue Axway Stable on our strategic over Transformation FY Revenue ambition 13% 60