Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — Investor Presentation (October 2016)
37 slides from Txt E-solutions's investor presentation, October 2016
Slide 1: TXT e-Solutions Corporate Overview
TXT e-Solutions Corporate Overview October 2016
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 53% 47% H1 2016: 18.8m€ H1 2016: 15.4m€ 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 Devel
Slide 4: FY 2015 & H1 2016 Results
FY 2015 & H1 2016 Results FY 2015 H1 2016 Revenues: 61.5 m€ (+13.1%) 33.2 m€ (+6.6%) Net Income 3.9 m€ 2.0 m€ Free Cash Flow 8.4% of Rev. 8.6% of Rev. NFP: 8.3 m€ 0.5 m€ 5 years CAGR +11% p.a. 5 years CAGR +11% 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% Spain 2% North Am. Italy 16% 11% APAC Germany 8% 21% UK & Nordics 21% France 21% 6
Slide 7: Unique Customer Base of 300+ Luxury Global Brands
Unique Customer Base of 300+ - 15+ New Major Customers and 50+ Go-Lives of Major Projects, each Year … - … across all Segments, Business Models & Geographies Luxury Global Brands Fast Fashion Specialty Department Store Luxury Global Brands Fast Fashion Mixed Goods Mixed Goods 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 impact Key Business Processes? The Omnichannel Retailers’ «Merchandise Lifecycle»: A strategic & complex End-to-End pro
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: - A unified database that informs the End-to-End
Slide 12: TXT Retail's AgileFit Deployment
TXT Retail’s AgileFit Deployment: from SW to Business Best Practices «Ready to Go» Mitigate Project Solution Design Workbook Design Interface Specification Risk Reduce Project Costs Faster Reference Application Performance Tests Project Deliverables 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 • Assortments based on Consumer Insight Cloud-based Managed Services 14
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 TXT Customers !! …conquer the Packaged 10% Solutions «Green Prairie».. 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 21
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 expected to grow at CAGR 9+% in the next 5 years are externalised to
Slide 22: TXT Next: A Global Customer Base across the Industry Value Chain
TXT Next: A Global Customer Base across the Industry Value Chain Aircraft OEMs 1st Tier Suppliers & MROs Operators, Lessors & Consultants Fixed & Rotary Wings Academia & Research 22
Slide 23: TXT Next: A Value Proposition, Spanning the Entire Product Life-cycle
TXT Next: A Value Proposition, Spanning the Entire Product Life-cycle Deep technology AND industry knowledge in multiple niches across the Product Lifecycle 24
Slide 24: TXT Next: Coverage of the Value Chain in the Aerospace & Aviation Industry
TXT Next: Coverage of the Value Chain in the Aerospace & Aviation Industry 90% AIR TRANSPORT AIR TRANSPORT of Business OEMs & 1st Tier Suppliers Airlines 14% CUSTOMER MARKETS 9% PRODUCT TXT ROLE 43% LIFECYCLE PRACTICES 15% ON-BOARD 8% 13% We develop SOFTWARE R&D & Product Software that is Developmen
Slide 25: TXT Next: 30+ Years in the Industry, 350+ Specialised Engineers
TXT Next: 30+ Years in the Industry, 350+ Specialised Engineers SEATTLE SASSENHEIM BERLIN SHANGHAI YEOVIL MUNICH TOULOUSE MILAN TURIN 25
Slide 26: TXT Next: Differentiating Software IPs
TXT Next: Not only People’s Know-how & Experience … but also Differentiating Software IPs «Engineering Solutions» that leverage on the «People + IP» paradigm 24
Slide 27: TXT Next: A Track Record of Worldwide Delivery & Support
TXT Next: A Track Record of Worldwide Delivery & Support 70+ 30+ CUSTOMERS COUNTRIES 27
Slide 28: TXT Next Strategic Plans
TXT Next Strategic Plans To become … Leveraging on …. • a specialized, multi-niche • 30+ years of history in the Industry • mid-sized (100 m€) • 350+ specialised engineers • International provider • Both «People» AND a growing portfolio of «IPs» • of Engineering “Solutions” • Multi-niche: breadth AN
Slide 29: Summary & Financial Details
Summary & Financial Details Confidential & Proprietary 29 29
Slide 30: 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 31: 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 32: Why Invest in TXT?
Why Invest in TXT? • International profile: >55% 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 33: H1 2016 – Consolidation of acquisition of Pace GmbH from Q2
H1 2016 – Consolidation of acquisition of Pace GmbH from Q2 € thousand I SEM. 2016 % I SEM. 2015 % Var % REVENUES 33.183 100,0 31.126 100,0 6,6 Direct costs 15.847 47,8 14.878 47,8 6,5 GROSS MARGIN 17.336 52,2 16.248 52,2 6,7 Research and Development costs 3.144 9,5 2.716 8,7 15,8 Commercial costs 6
Slide 34: Strong Balance Structure
Strong Balance Structure Total of which of which € thousand 30.6.2016 31.12.2015 variance Pace GmbH TXT Intangible assets 22.373 14.692 7.681 8.481 (800) Tangible assets 1.574 1.361 213 168 45 Other fixed assets 2.132 2.079 53 - 53 Fixed Assets 26.079 18.132 7.947 8.649 (702) Inventories 3.256 2.075
Slide 35: Dividends & Shareholder's Return 2011-2016
Dividends & Shareholder‘s Return 2011-2016 •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 •26.9.2016: 7.13€ /share •2013: 0.20 € /share (rebased) •2014: Free Share Distribution 1:1
Slide 36: TXT Market Capitalization (m€)
TXT Market Capitalization (m€) Free share distribution 1:10 Free share distribution 1:1 Free share distribution 1:1 Dividend 2.9m€ Dividend 2.6m€ Dividend 2.6m€ Dividend 2.1m€ Dividend 10.3m€ 36
Slide 37: Shareholding Structure – May 2016
Shareholding Structure – May 2016 Management A. Braga Illa 7,9% 14,0% Market E-Business Consulting 42,5% 25,6% Treasury Shares 10,0% 37
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