interim results - omni channel | airline retail | airline ...€¦ · transaction-based revenue...
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Interim Results August 2015
© 2015 Datalex
Contents
© 2015 Datalex 2
Interim Results 3
Investment Highlights 8
Growth Strategy 18
Summary & Outlook 23
Appendices 25
FORWARD LOOKING STATEMENTSSome statements in this presentation are forward looking. They represent expectations for Datalex’s business and involve risks and uncertainties. Datalex has based these forward-looking statements on current expectations and projections about future events. Datalex believes that expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond Datalex’s control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.
2015 Interim Results
© 2015 Datalex 3
Continued Growth & Performance
H1 2015 Continued Growth & Performance
© 2015 Datalex 4
11% Platform Revenue Growth
New Customer Go-Lives
Organic Customer Growth
13% Increase in Cash
Operating Leverage
Powerful Commercial Model
Multiple Horizons for Growth
Global Brand Customers/Partners
Investing for Scale
Innovation in Digital Commerce for Travel
Expert Resources
Partner Ecosystem
FY2015 Guidance reiterated - 20-25% growth in Adj. EBITDA
Growth Visibility Scale
H1 2015 Business Highlights
© 2015 Datalex 5
Revenue Growth
New CustomersLive and driving revenue
Growing Ecosystem Global brand customers and partners
Strong pipeline
Organic Growth As customers take full advantage of platform
Investing for Growth
Digital Commerce New call centre application; payments and
CRM features to further drive revenue
PartnersLocalization partner to scale operations in
China – our highest growth market
ResourcesExpert Resources to serve new markets and
structure business for growth
H1 2015 Income Statement
Platform Revenue growth of 11% -new customers live and organic growth
Investment in scaling the business
On track to meet FY15 guidance; 20% - 25% growth in Adj EBITDA
© 2015 Datalex 6
US$M HY’15 HY ’14 HY ’13
Total Revenue 20.8 20.2 17.7
Platform Revenue 10.6 9.6 8.0
Total Costs 20.6 19.7 17.5
Net Amortised Dev. 0.3 0.9 0.3
Adjusted EBITDA 3.8 3.8 3.1
Profit after tax 0.3 0.6 0.2
Basic EPS - cents 0.37 0.77 0.23
Continued growth in Platform Revenue and New Customers
H1 2015 Balance Sheet
13% Increase in net cash
50% increase in dividend paid
174% Increase in net cash generated from operations.
Continued focus on working capital management
© 2015 Datalex 7
US$M HY’15 HY’14 HY’13
Total Assets 45.0 42.0 38.6
Receivables 12.0 12.2 11.0
Total Equity 34.0 33.5 31.9
Total Liabilities 10.9 8.5 6.7
Net Working Capital 17.3 18.9 16.4
Cash 16.2 14.3 11.5
Net Cash Generated from Operations
3.4 1.3 (1.0)
Intangible Assets 14.0 12.4 13.6
Strong Balance Sheet offers flexibility
Investment Highlights Digital Commerce for Travel Retail
© 2015 Datalex 8
Key Investment Highlights
© 2015 Datalex 9
Large Addressable Market
Market Leading Digital Commerce – Differentiated Solution
Powerful Commercial Model
Proven Track Record of EBITDA Growth & Cash Generation
Multiple Horizons for Future Growth
Large Addressable Market
© 2015 Datalex 10
Sources: Worldwide Digital Travel Sales: The eMarketer Forecast for 2015
Digital Travel Commerce~$500 Billion
Global Digital Commerce~$1.6 Trillion
A Unique Strategic Asset for Airline Retailers
© 2015 Datalex 11
>1 BILLIONGLOBAL
SHOPPERS
>60GLOBAL BRAND
CUSTOMERS AND PARTNERS
NO.1WORLD’S TRAVEL
MERCHANDISING PLATFORM
STRONG PRESENCE IN
HIGHEST GROWTH MARKETS
Market Leader - Scale and Performance
© 2015 Datalex 12
$20 BillionRevenue transacted by global retailers
through the Datalex Commerce
Platform
>1 BillionPeople use the Datalex Commerce
Platform annually to shop for their
travel needs
90%Contract renewal rates
$60 MillionInvested to date in product innovation
150 YearsSoftware and travel technology
expertise in the Datalex leadership
team
24.6%Adj. EBITDA CAGR (2012 – 2014)
$10MNet cash generated from operations in
2014
>60Global brand customers and partner
providers leverage the Datalex
Commerce Platform
$200 MillionIncremental annual operating income
forecast by JetBlue Airways from using
Datalex software
Market Leader – Digital Commerce for Travel Retail
© 2015 Datalex 13
Digital Commerce driving Revenue and Loyalty for Global Travel Retailers
Future Proof CommerceShopping and Customer Insights
An Ecosystem of Global Brand Customers and Partners
A Marketplace for travel retailacross all Sales Channels
Powerful Commercial Model
© 2015 Datalex 14
Strong Visibility of Customer Growth
Transaction-based revenue model linked to passenger volumes, product offerings and sales channels.
Revenue growth as airline passengers increase and as airlines incorporate new components of the platform to drive new product offerings across new sales channels.
Critical Strategic Asset as Digital Commerce becomes primary enterprise system for revenue and customer engagement
– 90% Retention Rates
– Powerful Customer ROI
© 2015 Datalex 15
“We look at the investment which we have made in our partnership with Datalex to be significant… to
create a retail merchandising capability which is greatly
superior to what we have today”
Robin HayesPresidentJetBlue
“As a key component in our digital and retailing strategy, Brussels
Airlines has selected the DatalexPlatform to power our future
Internet retail website”
Xavier LagardèreVP - Online Retail & DistributionBrussels Airlines
© 2015 Datalex 16
“We look at the investment which we have made in our partnership with Datalex to be significant… to
create retail merchandising capability which is greatly
superior to what we have today”
Robin HayesPresidentJetBlue
“As a key component in our digital and retailing strategy, Brussels
Airlines has selected the DatalexPlatform to power our future
Internet retail website”
Xavier LagardèreVP - Online Retail & DistributionBrussels Airlines
>$200MAnnual Incremental Operating Income
*JetBlue Investor Day, 14/11/14
42%Increased Conversion Rates
for B2C*
Proven Track Record*
© 2015 Datalex
2010 2011 2012 2013 2014
26.8 28.0
32.4
38.141.4
13.0 13.2 14.717.5
19.5
Revenue (US$m)
Total Revenue Platform Revenue
108.0%
104.9%
98.8%
96.1%94.4%
90.0%
100.0%
110.0%
2010 2011 2012 2013 2014
Cost / Revenue %
2010 2011 2012 2013 2014
11.112.5
14.6
16.918.3
Cash (US$m)
2010 2011 2012 2013 2014
3.1
4.4
6
7.5
8.5
Adj. EBITDA (US$m) / Margin %
11.5%
15.7%
18.5%
19.7%
20.5%
17Continued Growth in Revenue and Adj. EBITDA
*All figures related to full year.
Growth Strategy Extend Product and Market Reach
© 2015 Datalex 18
Growth Drivers
© 2015 Datalex 19
New Customer Acquisition and Customer Development
1
Digital Commerce Product Innovation and Excellence extends
product and market reach.
2
An Ecosystem of global brand customers and partner providers extends product and
market reach
3
Customer Growth and Acquisition
© 2015 Datalex 20
Digital consumer growth delivers a strong tailwind of growth
Airline extends our Commerce Platform to support new products and new sales channels
Customers leverage platform to optimize offers and digital engagement
Customer success expert resources assigned to help customers grow revenues by taking full advantage of platform
CUSTOMER DEVELOPMENT
Leading airline brands increasingly seek to re-platform and future proof their digital commerce suites
Datalex sales are buoyed by compelling customer testimonies
Investing in direct sales & brand
Growing our Asia Pacific operations
Leveraging ecosystem of global partner providers
NEW CUSTOMER ACQUISITON
Digital Commerce Excellence & Innovation
© 2015 Datalex 21
PRICING DATA
PAYMENTSSHOPPING
CommercePlatform
CONTROL THE OFFER
UNLOCK REVENUE AND LOYALTY COMPLETE THE TRANSACTION
ONE SINGLE VIEW OF CUSTOMER
Agility and Travel Commerce Expertise
Digital EcoSystem
© 2015 Datalex 22
DATA WAREHOUSE
CLOUD
INTEGRATORS
CRM
DIGITAL WALLET
PSP’S
CREDIT MGT
ALTERNATE
PSS
PRICING
LOYALTY
3RD PARTY CONTENT
Digital Design
B2B Agencies
SOLOMO
APPS
UX CONTENT
SERVICES PAYMENTS
Enabling a Digital Marketplace
Summary & Outlook
© 2015 Datalex 23
Summary and Outlook
© 2015 Datalex 24
Large Addressable Market
Market Leading Digital Commerce – Differentiated Solution
Powerful Commercial Model
Proven Track Record of EBITDA Growth and Cash Generation
Multiple Horizons for Future Growth
Full Year Guidance Reiterated - 20-25% growth in Adj. EBITDA
Appendices
© 2015 Datalex 25
Contacts
© 2015 Datalex 26
Datalex plc
Global HQ
Block U
East Point Business Park
Dublin 3
Ireland
+ 353 1 806 3500
US Toll Free: 1 888 234 1890
datalex.com
@datalex
Aidan Brogan
CEO
Executive Director
David Kennedy
CFO
Executive Director
EVENT DATE
Interim Results August 26th 2015
Q3 IMS November 2015
Management Team
© 2015 Datalex 27
Team with over
150 yearsexecutive experience in
travel ecommerce, technology,
infrastructure and retail markets.
© 2015 Datalex 28
Corporate Information
LISTING PARTICULARS
Exchange Irish Stock Exchange
Ticker ISE:DLE
Issued Share Capital 75.0m
ANALYST COVERAGE
GoodbodyJack [email protected]
Panmure GordonPeter [email protected]
DavyRoss [email protected]
InvestecConor [email protected]
Cantor FitzgeraldShane [email protected]
LARGEST SHAREHOLDERS
IIU Nominees Limited 27.53%
Pageant Holdings Limited 10.69%
Kabouter Management LLC. 5.23%
Farringdon Capital Management SA 3.60%
Paschal Taggart (Chairman) 3.58%