customer connect general session - day2_part1
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TRANSCRIPT
Welcome to London!
175Attendees+ hundreds of remote viewers
Vienna
South Africa
Live Twitter WallGrand Ballroom
#Kofax #BPM
Thank you to our sponsors!
General Session Live Q&A Expert Panel
Derek Mires, Principle Analyst, Forrester ResearchAnthony Macciola, CTO, KofaxJohn Newton, CTO & Co Founder, Afresco SoftwareAnthony Murphy, Owner, Lithe ITMartyn Christian, CMO, Kofax
Reynolds C. Bish, CEO, KofaxKofax Corporate Update & Vision
Padraig Canavan, SVP BPM Software, KofaxWhen Capture Enabled BPM is Right for Your Business?
Anthony Murphy, Owner, Lithe ITThe Criminal Injuries Compensation Authority story
Martyn Christian, CMO, KofaxAnthony Macciola, CTO, KofaxCapture Enabled BPM – our Exciting Future
Capture Enabled BPMLaunch EMEA Event
Kofax Corporate Update & Vision
Reynolds C. Bish, CEO
Calendar Year
20122006 2007 2008 2009 20101985 - 2005 2011
Company began implementing new strategic initiatives
March 2007 – Greg Lock joined as Chairman
Nov 2007 – Reynolds Bish joined as CEO
Company moved to US $ reporting
Disposed of legacy VAD business
US financial expert joined the Board
1985 – Founded as Dicom AG in Switzerland as a Samsung distributor
Expanded into the VAD of imaging hardware & maintenance services via 15 acquisitions in EMEA
1996 – Went public on AIM & then the LSE
1999 – Acquired Kofax in Irvine, CA to expand into the capture software business, which it then grew via 4 acquisitions
Factors combined to result in stagnant revenue growth, a loss of market share & missed expectations
• Failure to integrate acquisitions
• Channel centric GTM model
• Paternalistic culture AcquiredOptiInvoice
Acquired170 Systems
Acquired Atalasoft
Acquired Singularity
Company Timeline
Successful & Growing
> 20,000 end user customers
> 750 channel partners
Products available in > 60 countries
Subsidiaries in 30 countries
Fiscal year ended June 30, 2011 Software License Revenues: $117 million – up 5%
Total Revenues: $244 million – up 12%
Adjusted EBITA: $40 million – up 54%
Adjusted EBITA Margin: 16.5% – up from 12.0%
Cash: $98 million
No debt and a $40 million unused line of credit
0.0%
5.0%
10.0%
15.0%
20.0%
FY09 FY10 FY11
$000s
SoftwareLicense
Revenues
TotalRevenues
AdjustedEBITA
Margin
$0
$25,000
$50,000
$75,000
$100,000
$125,000
FY09 FY10 FY11$0
$50,000
$100,000
$150,000
$200,000
$250,000
FY09 FY10 FY11
AdjustedEBITA
$0
$10,000
$20,000
$30,000
$40,000
FY09 FY10 FY11
Financial KPIs by Fiscal Year
$30,000
$40,000
$50,000
$60,000
$70,000
1H09 2H09 1H10 2H10 1H11 2H11 1H12
0.0%
5.0%
10.0%
15.0%
20.0%
1H09 2H09 1H10 2H10 1H11 2H11 1H12$5,000
$10,000
$15,000
$20,000
$25,000
1H09 2H09 1H10 2H10 1H11 2H11 1H12
SoftwareLicense
Revenues
TotalRevenues
AdjustedEBITA
Margin
AdjustedEBITA
$50,000
$75,000
$100,000
$125,000
$150,000
1H09 2H09 1H10 2H10 1H11 2H11 1H12
$000s
Financial KPIs by Half Year
12
Half Year EndedDec. 31, 2011
Americas EMEA Asia Pacific
$M%
change
$M % change $M %
change
Software License Revenues 34.8 3.2% 19.3 -17.9% 3.4 27.4%
Total Revenues 70.7 12.3% 49.0 -5.9% 8.9 21.8%
Geographic Revenues
FY1123 > $500,000, up from 1712 > $1 million, up from 9
Half year ended Dec 31, 20119 > $500,000, up from 62 > $1 million, up from 1
5
10
15
20
25
FY 09 FY 10 FY 11
0
5
10
15
FY 09 FY 10 FY 11
> $500,000
> $1 million
Continued to Close More Large Sales
The mobile capture software market is expected to grow from nascent origins today to more than $1.3 billion by 2015
Point of Origination
Spend >13% of our revenues on R&D
• $32 million in FY11
In FY11 and the half year ended Dec 31, 2011 we launched 9 new software releases & solutions
Most recently Kofax Mobile Capture
Source: Harvey Spencer Associates – Nov 2011
Continued to Focus on Innovation
Capture Market Evolution & Growth
Monolithic Page
Scanners in Centralized Back Offices
Production Level
Scanners in Centralized, Back Offices
1M
100M
1B+
Mid Range Scanners in Distributed
Regional Offices
Desktop Scanners &
MFPs in Highly
Distributed Front Offices
Smart Phones & Tablets Used by
Employees & Customers
1985 1990 1995 2000 2005 2010 2015
$0
$1B
$2B
$3B
$4B
$5B
100K
500K
“Batch Image Capture” – # 1 with 35%, up from 25% “Batch Content Capture” – # 1 with 17%, up from 13% “Ad Hoc Content Capture” – # 4 with 10%, up from nothing
These comprise the “enterprise” portion or 67% of the overall market # 1 with 21%, up from 16%
Our overall market share increased to 15% in 2010 – up from 11%
Source: Harvey Spencer Associates – July 2011
Continued to Gain Market Share
Point of Origination
Strategic acquisition to scan enable and add internet portals as a “Point of Origination” for our capture platform
Integration has proceeded as planned and complete
Has performed better than expected to date
We Acquired Atalasoft
A very strategic acquisition to add BPM & Dynamic Case Management
Key benefits Better addresses customer needs Approximately doubles our addressable
market
Enterprise Ready
We Acquired Singularity
19
2010 2015
$2.2 bn
$3.9 bn
$2.1 bn
$3.7 bn
Capture BPM
$4.3 bn
$7.6 bn
Kofax has # 1 leading position in capture with a 21% share of the enterprise segments, which account for 67% of the total market
Singularity was a “Visionary” in Gartner’s “Magic Quadrant” for BPM and a “Leader” in Forrester’s “Wave” for Dynamic Case Management
CAGR of 12%
Source: Gartner (April 2011), Forrester (January 2011) and Harvey Spencer Associates (July 2011)
Doubling our Addressable Market
We Acquired Singularity
Strategic acquisition to add BPM & Dynamic Case ManagementKey benefits Better addresses your stated needs Doubles our addressable market We’ll be the first to offer a single capture enabled BPM platform Will be fully deployable “on premise” under a traditional perpetual
license model
AND via a public cloud under a hosted SaaS subscription model
Integration has proceeded as planned and will be complete by July
Has performed better than expected to date
To be the leading provider ofCapture Enabled BPM Solutions
Our New Corporate Vision
Capture Enabled BPM Solutions
Point of Origination
Touchless Processing
Enterprise Ready
1
2
3
Our Product & Market Vision
Deliver organic revenue growth > than the
market
Augment that growth with strategic
acquisitions
Control costs to meet adjusted EBITA
objectives
Pursue a secondary listing on NASDAQ
Our Corporate Strategy
Thank You !Our success is the direct result of your continuing support and trust.
Capture Enabled BPMLaunch EMEA Event
Capture Enabled BPM – Our Exciting Future
Martyn Christian, CMO & Anthony Macciola, CTO
Capture to Archive Capture to Process
Capture EnabledBPM
Content & Process
Analytics
Understanding&
Deciding
Capture + BPMDrive revenue Save money
Increase productivityEnsure complianceWorldwide reach
ReducedTCO
BroadDeployment
CaptureEnabled
BPM
Powerful…
Flexible…
Business Processes
Deliver
information
Manage
information flow
Application Approval Provisioning Service Closure
VISIONSOA
Analytics BPM
CloudMobility
VISIONPOINT OF ORIGINATION
TOUCHLESS PROCESSING
ENTERPRISE READY
POINT OF ORIGINATION
TOUCHLESS PROCESSING
ENTERPRISE READY
Capture at the start of the business process
Remove human intervention. Make
better decisions faster
All departments, processes and the
entire enterprise
Paper
Fax
SMS
XML
Office
Mobile applications
Paper documents Social
collaboration
SocialElectronic formats
DecideUnderstand
What to do with it?What is it?
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
Paper
Fax
SMS
XML
Office
Social
DecideUnderstand
Deci
de
Und
ers
tand
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
Paper
Fax
SMS
XML
Office
Social
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
Deci
de
Und
ers
tand
Paper
Fax
SMS
XML
Office
Social
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
Deci
de
Und
ers
tand
Paper
Fax
SMS
XML
Office
Social
POINT OF ORIGINATION
TOUCHLESS PROCESSING
ENTERPRISE READY
Extend back end systems to front office equipment
Automate back end processes directly from MFPs / copiers & desktop scanners
Leverage existing IT infrastructure
Capture at Point of OriginationFront/branch Office
Capture at the Point of
Origination Web Portals
Customer convenience
Efficient business processes
Mobile Capture
POINT OF ORIGINATION
TOUCHLESS PROCESSING
ENTERPRISE READY
Touchless… straight thru processing
- or - Touchless… Dynamic Case
Management
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
Deci
de
Und
ers
tand
Paper
Fax
SMS
XML
Office
Social Extr
act
Valid
ate
Com
munic
ate
Separa
te
Cla
ssify
Captu
re
Paper
Fax
SMS
XML
Office
Social
Extr
act
Valid
ate
Com
munic
at
e Separa
te
Cla
ssify
Captu
re
Paper
Fax
SMS
XML
Office
Social Extr
act
Valid
ate
Com
munic
ate
Separa
te
Cla
ssify
Captu
re
CAPTURE
Paper
Fax
SMS
XML
Office
Social Extr
act
Valid
ate
Com
munic
ate
Separa
te
Cla
ssify
Captu
re
CLASSIFY
Paper
Fax
SMS
XML
Office
Social Extr
act
Valid
ate
Com
munic
ate
Separa
te
Cla
ssify
Captu
re
SEPARATE
Paper
Fax
SMS
XML
Office
Social
Extr
act
Valid
ate
Com
munic
ate
Separa
te
Cla
ssify
Captu
re
EXTRACT
Paper
Fax
SMS
XML
Office
Social Extr
act
Valid
ate
Com
munic
ate
Separa
te
Cla
ssify
Captu
re
VALIDATE
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
Paper
Fax
SMS
XML
Office
Social Extr
act
Valid
ate
Com
munic
at
e
Separa
te
Cla
ssify
Captu
re
COMMUNICATE
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
??
?
✔ ✔✔ ?
? ?✔
✔ ✔?
?
? ✔
✔
✔
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
?✔
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
ECM/RM Database
SharePoint
Portal ERP/LOB/CRM
POINT OF ORIGINATION
TOUCHLESS PROCESSING
ENTERPRISE READY
CAPTURE+BPM
Distributed Architecture
Transactional
Beginning of a Business Transaction
Transaction Speed
Scalable
Low Latency
Web Services
Agile.Intelligent.
Legacy.Archive.
STORAGE
Reduced time, costs and errors
Improved quality and compliance
Better business decisions
Minimal process latency
Dynamic and flexible
Old iron
Heavier to deploy
More expensive
Less intelligent
More manual intervention
CAPTURE BPM STORAGE
Capture Enabled
BPM
EASIERDEPLOYMENT
in theCloudPoint of
Origination
SaaS
Intelligent Business Operations
Analytics
Predictive processes
Content extraction
Content analytics
Business intelligence
Kofax Analytics
POINT OF ORIGINATION
TOUCHLESS PROCESSING
ENTERPRISE READY
THANK YOU.
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