TIE Kinetix 31 March AGM 2017
AGENDA
1. Financials 2016 – Michiel Wolfswinkel
• Operational performance 2016
• Outlook 2017
• Balance sheet development, equity
2. Operations 2016 – Jan Sundelin
3. Outlook – Jan Sundelin/Michiel Wolfswinkel
Performance in FY 2016
Revenue decreased: • TFAG revenue guarantee • German portals • KPN/Tmob contracts • EU projects
Profitability increased: • Lower indirect costs • No restructuring costs
In € x 1.000
2016 2015 Change
Total revenue 20.250 22.263 (2.013)
Total cost of sales (9.515) (11.565) 2.050
Gross margin 10.735 10.698 37
Total Operating expenses (8.647) (8.839) 192
EBITDA (excl. one-time expenses) 2.088 1.859 229
One-time expenses (22) (1.993) 1.970
EBITDA 2.065 (134) 2.199
EBIT 786 (1.390) 2.176
Total Consolidated
Operational performance last three years
Transition from services to solutions: • Ending non strategic business • Building core strategic FLOW
2016 2015 2014
Revenue 19.699 20.398 19.360
EBITDA (normalized) 2.976 2.035 2.29015% 10% 12%
EBITDA 2.954 1.363 1.56315% 7% 8%
EBIT 1.676 108 7089% 1% 4%
# of employees 129 136 148
Operational Performance (excl. EU Projects)
Revenue by Business Line
Revenue at risk in FY 2017: E-commerce € 1,0 - 1,5 million Demand Generation € 1,0 - 1,5 million EU Projects upto € 0,3 million
Business Line 2016 2015 YoY-last year outlook
Integration 10,9 9,8 12-15% growth
E-Commerce 2,3 3,2
Portals 0,3 0,9 decline EOL
Non-portals 2,0 2,3 decline decline
Analytics&Optimization 3,3 3,3 flat growth
Demand Generation 4,3 4,6
Portals 2,1 2,9 decline decline
Non-portals 2,2 1,7 growth growth
EU Projects 0,5 1,9 decline decline
Transition: Value brought by businesses
What did we get from:
• EU Projects ? -> FLOW modules in Supply Chain Integration
• KPN/Tmob contracts ? -> FLOW modules in Lead&Sales conversion
(Mambo 5: investment € 1.4 million
EBITDA € 3.1 million - YTD Q1 2017)
• Portal business? -> Hybrid Hosting / public cloud offering
Revenue by type
Consultancy lower: T-Mobile business, A&O, portals, TFAG business SaaS higher: 7% increase dispite T-Mobile, A&O, portals, TFAG business
revenue type FY 2016 FY 2015 YoY growth
License 906 804 13%
Maintenance and support 2.988 3.019 -1%
Consultancy 5.794 6.897 -16%
SaaS 9.818 9.180 7%
Total 19.507 19.900 -2%
other/EU 744 2.263 -67%
Total 20.251 22.163 -9%
Balance sheet developments
Balance sheet 2016 2015 2016 2015
Asset side Liability side
IFA 3.383 2.879 Loans 8 1.165
cash 1.187 692 Bank overdraft 0 692
Short term debt 34 860
Loans redeemed Bank overdraft redeemed Strong cash position Working capital facility (1,25 mln undrawn)
Shareholder equity: 27% increase from € 3,51 per share (2015) to € 4,47 per share (2016)
FLOW Development
2016: year of centralization of development efforts:
All development under central management of CTO/no more local dev.
All dev. resources for FLOW. No more EU projects (only 1 fte).
In total 17.820 dev hours spent on FLOW
- in NL (11.405),
- in US/Vietnam (4.605)
- in Germany (1.807)
HAND OVER TO JAN SUNDELIN
Revenue Development of SaaS and Maintenance
0
2.500
5.000
7.500
10.000
12.500
15.000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SaaS
Maintenance
Mid term Goals & Strategy set in march 2015
3 year goals 2018
To become a true global software solutions provider.
To be a technology leader in the field of information exchange within the
supply chain.
To generate annual revenues of at least € 25mln.
TIE Kinetix strategy
Further globalize operations and sales activities through acquisitions and
partnerships.
Continue to focus on technology and research and development.
Further streamline and optimize the internal organization.
12
Annual Goals & Strategy FY 2016
Targets and Priorities for the coming financial year:
» Grow the SaaS revenue year on year. YES
» Continue to Improve our 3 year order contact value in better margin. YES
» Target a minimum of 30% new customer order intake in 2016 vs 2015. NO
» Expand our Google partnership to Adwords. YES
» Introduce a NEW FLOW product offering in all our existing markets. YES
» Down size further EU development grants. YES
» Start moving customers application and take down hosting cost world wide. YES
» Introduce minimum of 5 new SaaS product apps in FLOW. YES
13
The Next Generation Supply Chain Integration
Our supply chain integration technology has transformed the digital supply chain for 30 years:
We enable the seamless integration of all data, documents, content and information through (independent) suppliers, trading partners and channel partners connected in any supply chain;
We ensure a seamless integration with the full technology stack of our customers;
Our solutions maximize revenue potential with minimal efforts for channel partners.
Icoontjes er omheen
Great innovations come from The Netherlands too!
Icoontjes er omheen
Great innovations come from The Netherlands too!
Great innovations come from The Netherlands too!
Google AdWords
for Channel
Google AdWords for the Channel
+
=
“Innovation is taking two things that already exist and putting them
together in a new way” - Tom Freston (Viacom)
Large Enterprises
SMB business
SoHo
(Brands)
Resellers
Partners
75%
1:n 1:1
Google AdWords for the Channel – What is it?
1) End users using Google Search get relevant Ad’s from local
dealers close to them
2) A click on the Ad will take the end-user to a relevant
landing page on the local dealer website
3) Brands and suppliers can centralize Google AdWords
Campaigns and have their dealers participate
4) Dealers don’t have to do anything for this, only follow up
on the leads or receive the sales
Demand Generation
Video - How does it work?
Watch Video
Reporting
New innovations for The Netherlands
B2B and B2G
E-Invoicing – EDI PEPPOL
Integration
Insights about the B2G E-Invoice opportunity Europe!
Integration
Insights: Why B2G E-Invoicing in Europe?
€ 240 billion will be saved in Europe in 6 years
Support of the European Commission
“Directive 2014/55/EU”
Public sectors in BLG, FR, GE and NL started to
implement because of Directive
E-Invoices has been widely adopted in
pioneering Scandinavian countries
Denmark, Finland, Norway, Sweden
PEPPOL!
Integration
Insights: Invoice numbers in The Netherlands
Numbers for Netherlands are based on 2015
Total number of B2G Invoices ≈ 11.7 million per year 4.6 million Euro
Total number of B2B Invoices ≈ 1.1 billion per year 431 million Euro
BREAKDOWN
– Municipalities ≈ 6.029.000 per year
– Central Government ≈ 1.569.000 per year
– Other Governmental org. ≈ 4.071.000 per year
What % of those are electronic invoices
BREAKDOWN
– Municipalities ≈ 2% electronic invoices
– Central Governments ≈ 13%-18% electronic invoices
– Other Governmental org. ≈ 1% electronic invoices
Integration
TIE Kinetix has been actively participating in standardization
initiatives for many years EDI & E-Invoicing
UN/CEFACT: United Nations Centre for Trade Facilitation and
Electronic Business act as intergovernmental body
of the UNECE (United Nations Economic Commission for Europe)
www.unece.org
GS1: GLOBAL SUPPLY CHAIN
PEPPOL: PAN EUROPEAN PUBLIC PROCUREMENT ON LINE
www.peppol.eu/about_peppol/background-peppol-project
SimplerInvoicing: SIMPLIFY E-Invoicing in Netherlands
www.simplerinvoicing.org
EESPA: EUROPEAN E-Invoice SERVICE PROVIDER ASSOCIATION
www.EESPA.eu
Integration
Video - FLOW B2B and B2G EDI & E-Invoicing
Watch Video
Analytics & Optimization
Analytics & Optimization
Google GSA Optimizely Searchmetrics Google Analytics and Big Query
Integration Optimization
Report
Analytics Business Intelligence
Data Warehouse
Community Dashboard
Size of Community
Marketing, Sales and
Integration
communities
Adoption KPIs
Conversion KPIs
Value of the solutions
TIE Kinetix Outlook
Mid Term outlook
Integration: organic growth >> than market growth through:
• leading position in BtG (E-invoicing to government)
• Vertical focus (FOOD / AUTOMOTIVE / Software / Business Services)
• International expansion through member of CEFACT (UN) and Peppol (EU) standards
• Partnership with leading ERP (Epicor, Exact, CGS, etc)
• Partnership with Objective Lune for new markets.
• PtP (Purchase to Pay) application Smart PDF.
Mid Term outlook
AdWords: high volumes / lower margin
• ‘Google’ drives new accounts
• ‘on-line add market’ brings new account and markets
• Upsell potential: from AdWord to FLOW
• Vertical focus
• Unify / Xerox / Michelin
Serious revenue potential; however at lower margins
Mid Term outlook
Hosting and portal revenue: non strategic
• Customers’ move from private to public accelerates
• maintain existing accounts if/where possible
• Limited role for TIE Kinetix
SaaS / business application revenue:
• Significant monetary potential
• Customer migration requires serious efforts
Mid term ambition:
100% revenue growth, with margin % decline:
1. loss of non strategic revenue (≈ € 3 million in 2017)
2. Replace with FLOW
• Sales fte’s solution selling
• Mass market (self service / low prices)
• Deep penetration in less verticals
3. Funding to scale (organic / non organic)
Alternative: find partner to scale
Questions
North America – T 1-800-624-6354 – www.TIEKinetix.com
Demand Generation | E-Commerce | Integration | Analytics & Optimization
Thank you!
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