74software · EURONEXT:74SW
74software — Axway — H1 2014 Earnings Presentation
36 slides from 74software's earnings presentation, Jul 25, 2014
Slide 1: Half Year 2014 Results
Half Year 2014 Results Christophe Fabre Chief Executive Officer 25 July 2014 © 2014 Axway | Investor Relations 1
Slide 2: Forward Looking Statements
Forward Looking Statements • This presentation contains forecasts in respect of which there are risks and uncertainties concerning the company’s future growth and profitability. The group highlights the fact that the signature of licence contracts, which often represent investments for clients, are
Slide 3: Content
Content • Half Year 2014 Analysis • Accounting & Financial Results • Positioning & Strategy • Q&A © 2014 Axway | Investor Relations 3
Slide 4: Half Year 2014 Analysis
Half Year 2014 Analysis © 2014 Axway | Investor Relations 4
Slide 5: HY2014: Revenue by Region
HY2014: Revenue by Region 2013 2013 Total Organic [M€] 2014 Published Pro forma Growth Growth1 France 42.7 34.8 38.6 22.8% 10.7% Rest of Europe 29.0 26.7 26.8 8.6% 8.2% America's 38.9 41.6 40.3 -6.6% -3.6% Asia/Pacific 4.3 3.2 3.0 31.9% 43.5% Axway 114.9 106.4 108.7 8.0% 5.7% (1) At constant exchang
Slide 6: HY2014: Revenue by Business Line
HY2014: Revenue by Business Line 2013 2013 Total Organic [M€] 2014 Published Pro forma Growth Growth1 Licenses 27.8 27.0 27.4 3.2% 1.7% Maintenance 57.4 52.4 53.6 9.5% 7.2% Services 29.6 27.0 27.7 9.9% 6.9% Axway 114.9 106.4 108.7 8.0% 5.7% (1) At constant exchange rates and on a like-for-like basis
Slide 7: Q2 2014: Revenue by Region
Q2 2014: Revenue by Region Q2 2014 2013 2013 Total Organic [M€] 2014 Published Pro forma Growth Growth1 France 24.6 17.9 21.7 37.4% 13.3% Rest of Europe 15.0 14.4 14.5 3.7% 3.2% America's 21.0 22.5 21.9 -6.8% -4.2% Asia/Pacific 2.3 1.7 1.6 41.5% 50.3% Axway 62.8 56.5 59.6 11.3% 5.4% (1) At constant
Slide 8: Q2 2014: Revenue by Business Line
Q2 2014: Revenue by Business Line Q2 2014 2013 2013 Total Organic [M€] 2014 Published Pro forma Growth Growth1 Licenses 17.1 16.4 17.1 4.1% 0.0% Maintenance 30.7 26.7 28.3 14.7% 8.4% Services 15.1 13.4 14.3 13.1% 6.0% Axway 62.8 56.5 59.6 11.3% 5.4% (1) At constant exchange rates and on a like-for-l
Slide 9: Axway: a Balanced Business Model
Axway: a Balanced Business Model HY2014 BY REGION BY ACTIVITY Asia Pacific France Licenses Services 4% 3% 24% 35% 37% 26% Americas 34% 38% 24% 50% 25% 45% Rest of Europe Maintenance © 2014 Axway | Investor Relations 9
Slide 10: Govern the Flow of Data - Americas
Govern the Flow of Data Americas California’s economy is the largest of any state in the U.S. and is the 8th largest in the world Growth of CA’s Secure File Transfer Infrastructure supporting 41 departments for 150 business unit projects that serve thousands statewide Tax preparation company, proces
Slide 11: Govern the Flow of Data - Americas
Govern the Flow of Data Americas CPG Manufacturer of iconic product brands marketed in more than 180 countries Enterprise B2B Modernization initiative for partner connectivity, internal integration and operational visibility Fortune 500 healthcare services company specializes in distribution of phar
Slide 12: Govern the Flow of Data - EMEA France
Govern the Flow of Data EMEA - France French company specializing in 3D design software, 3D digital mock-up and product life cycle management (PLM) Exchange Platform (PLM Files) in the Aviation Ecosystem (400 Partners). 75% owned by GDF Suez . Main operator in France for the transportation of natura
Slide 13: Govern the Flow of Data - Rest of Europe
Govern the Flow of Data EMEA – Rest of Europe Norwegian Information Technology Company 10 000 Employees – 135 offices in 16 countries B2B Modernisation with B2Bi Biggest postal service of Italy. Now offer integrated products: postal savings, communication, logistics & financial services; one of the
Slide 14: Govern the Flow of Data - Rest of Europe
Govern the Flow of Data EMEA - Rest of Europe One of the six ‘’Supermajor’’ oil companies in the world. EDI SaaS Cloud for MFT and B2B processes- Interface between Total Germany and Partners in Europe Biggest fashion group in the world with over 6,200 stores worldwide; 120,000 employees MFT for fina
Slide 15: Govern the Flow of Data - Asia Pacific
Govern the Flow of Data Asia Pacific Ecumenical Christian World non-governmental organization, serving 97 countries API Management solution will support external partner connections into their Microsoft SharePoint, CRM and Tibco internal applications. National bank based in Melbourne; owned by 30 in
Slide 16: Headcount at 30 June 2014: 1984
Headcount at 30 juin 2014: 1984 © 2014 Axway | Investor Relations 16
Slide 17: HY2014 in a Nutshell
HY2014 in a Nutshell • Systar acquisition is done • Significant growth (+8% total, +5.7% organic) • Flat licenses in Q2 – Good momentum in France – Lack of large signatures in US – Transformation of MFT/B2B – A5, API and OI are dynamic • Excellent Maintenance performance • Good trend for services ©
Slide 18: HY2014: Cost Analysis
HY2014: Cost Analysis HY 2014 HY 2013 FY 2013 (in M€) ( % Rev) (in M€) ( % Rev) (in M€) ( % Rev) Revenue : License 27.8 24.2% 27.0 25.4% 75.6 31.8% Maintenance 57.4 50.0% 52.4 49.3% 106.3 44.8% Total Product Revenue 85.2 74.2% 79.4 74.6% 181.9 76.6% Services 29.6 25.8% 27.0 25.4% 55.6 23.4% Total Re
Slide 19: Accounting & Financials Results
Accounting & Financials Results Patrick Donovan, Chief Financial Officer © 2014 Axway | Investor Relations 19
Slide 20: Income Statement (1/2)
Income Statement (1/2) In thousands of euros HY 2014 HY 2013 FY 2013 Revenue : License 27 837 26 970 75 583 Maintenance 57 395 52 417 106 348 Total Product Revenue 85 232 79 387 181 931 Services 29 638 26 979 55 613 Total Revenue : 114 870 106 366 237 544 - - - Costs of sales: Product Revenue 11 498
Slide 21: Income Statement (2/2)
Income Statement (2/2) In thousands of euros HY 2014 HY 2013 FY 2013 Profit on operating activities 5 408 7 130 37 468 as a % of Revenue 4.7% 6.7% 15.8% Stock option releated expenses (437) (645) (1 352) Amortization of intangible assets (1 991) (1 898) (3 679) Profit from recurring operations 2 980
Slide 22: Simplified Balance Sheet (1/2)
Simplified Balance Sheet (1/2) In millions of euros 30/06/2014 31/12/2013 30/06/2013 ASSETS Goodwill 226.4 189.3 195.6 Intangible assets 41.8 28.8 31.3 Property, plant and equipment 6.9 6.3 5.9 Other non-current assets 57.0 45.7 30.4 Non-current assets 332.2 270.1 263.2 Trade receivables 65.7 64.4 5
Slide 23: Simplified Balance Sheet (2/2)
Simplified Balance Sheet (2/2) In millions of euros 30/06/2014 31/12/2013 30/06/2013 SHAREHOLDERS' EQUITY AND LIABILITIES Share capital 41.1 40.9 40.7 Capital reserves and results 214.2 217.4 198.0 Total shareholders' equity 255.3 258.4 238.7 Financial debt - long-term portion 51.1 28.5 37.9 Other n
Slide 24: Change in Equity
Change in Equity In millions of euros 30/06/2014 31/12/2013 30/06/2013 Equity at Opening of Period 258.4 233.9 233.9 Profit for the period 2.8 35.6 9.8 Other comp. income statement items 0.0 0.0 0.0 Share-based payments 0.4 1.3 0.6 Treasury Shares 0.0 0.0 0.0 Dividends -8.2 -7.1 -7.1 Capital increas
Slide 25: Cash Flow Statement
Cash Flow Statement In millions of euros HY 2014 HY 2013 FY 2013 Net profit for the period 3.0 9.8 35.6 Net charges to amortizations, depreciations and provisions 4.6 8.1 8.0 Other income and expense items 0.6 1.0 1.7 Cash from operations after cost of net debt and tax 8.2 18.9 45.3 Changes to opera
Slide 26: Financial Structure – Covenants 2014
Financial Structure – Covenants 2014 0.6 180 0.5 160 0.4 140 0.3 120 0.2 0.1 100 0 80 -0.1 60 -0.2 40 -0.3 20 -0.4 -0.5 0 30/06/2014 31/12/2013 30/06/2013 30/06/2014 31/12/2013 30/06/2013 Net Debt/EBE R1<3 Net Debt/Equity R3<1 EBE/Cost of net financial debt R2>5 • Financial covenants met in all peri
Slide 27: Update on Axway Shareholder Structure
Update on Axway Shareholder Structure 30/06/2014 20,555,816 SHARES OUTSTANDING 35,667,648 VOTING RIGHTS Sopra Pasquier Odin Sopra Geninfo Treasury Managers Caravelle Public Group Family Family GMT (SG Group) Shares Shares outstanding 25.6% 0.1% 1.2% 2.4% 21.0% 8.7% 12.5% 28.4% 0.1% Voting Rights 29.
Slide 28: Positioning and Strategy
Positioning and Strategy Christophe Fabre, Chief Executive Officer © 2014 Axway | Investor Relations 28
Slide 29: Market Drivers: Your business will be hyperconnected
Market Drivers: Your business will be hyperconnected • The Digital economy is now effective – Cloud, Mobility, Real time, Connected things – Social Networks, Market Data, Customers, Citizens Business, Business Partners, Sensors – Local innovations, Ethic innovations • New landscape for business • Ne
Slide 30: B2B, Cloud, Mobile, Social: business interactions are exploding
B2B, Cloud, Mobile, Social: business interactions are exploding By 2016, integration on mobile devices will represent 20% of all Mobile integration spending Cloud APP By 2017, over two-thirds of all ... will extend outside the new integration flows ... enterprise firewall APP APP Social By 2016, com
Slide 31: About Operational Intelligence
About Operational Intelligence Source: Gartner, High Tech Tuesday Webinar: The AIM Market—Preparing for the Digital Industrial Revolution, 1 July 2014 © 2014 Axway | Investor Relations 31
Slide 32: Systar Offerings for Business Operations
Systar Offerings for Business Operations Banking Telecom BPM … 1. Process Proactively identify and resolve process issues prior to impacting business and Performance customers 2. Workforce Proactively optimize workforce to increase efficiency and match demand across Performance multiple activities,
Slide 33: Govern the Flow of Data
Govern the Flow of Data Axway 5 Suite (Launched in February 2013) Mobile Cloud Apps Cloud Infrastructure Governance Op. Intelligence Flow SLA/Analytics Community Mgt Policies Security Integration Human …. Partner Interactions Communities © 2014 Axway | Investor Relations 33
Slide 34: The competitive landscape
The competitive landscape Specialists Generalists Cyclone Tumbleweed Governing the Vordel flow of data Systar IDS Scheer Ilog Metismo Lombardi Terracota Sterling Commerce My-channels Excellence of Castlron Apama Process Aspera Alfabet Metaquark LongJump BEA Data Synapse Proginet Middleware Sun (Seeb
Slide 35: Outlook for 2014
Outlook for 2014 • Middleware market is under transformation – New requirements for MFT/B2B/Integration – API and OI are emerging and dynamic • Maintenance and Services are “on tracks” • Q4 will be the challenge for license performance • Perspective of full year organic growth is confirmed • ROA wil
Slide 36: Thank you, Q&A
Thank you, Q&A http://www.finance.axway.com/ © 2014 Axway | Investor Relations 36