Interim Results

Interim Results
August 2015
© 2015 Datalex
Contents
Interim Results
3
Investment Highlights
8
Growth Strategy
18
Summary & Outlook
23
Appendices
25
FORWARD LOOKING STATEMENTS
Some 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 Datalex
2
2015 Interim Results
Continued Growth & Performance
© 2015 Datalex
3
H1 2015 Continued Growth & Performance
Growth
 11% Platform Revenue
Growth
 New Customer Go-Lives
Visibility
 Powerful Commercial
Model
 Multiple Horizons for
Growth
 Investing for Scale
 Innovation in Digital
Commerce for Travel
 Expert Resources
 Organic Customer Growth
 13% Increase in Cash
Scale
 Global Brand
Customers/Partners
 Partner Ecosystem
 Operating Leverage
FY2015 Guidance reiterated - 20-25% growth in Adj. EBITDA
© 2015 Datalex
4
H1 2015 Business Highlights
Revenue Growth
Investing for Growth
New Customers
Live and driving revenue
Digital Commerce
New call centre application; payments and
CRM features to further drive revenue
Organic Growth
As customers take full advantage of platform
Resources
Expert Resources to serve new markets and
structure business for growth
Growing Ecosystem
Global brand customers and partners
Strong pipeline
Partners
Localization partner to scale operations in
China – our highest growth market
© 2015 Datalex
5
H1 2015 Income Statement
US$M
HY’15
HY ’14
HY ’13
Total Revenue
20.8
20.2
17.7
Platform Revenue
10.6
9.6
8.0
Total Costs
20.6
19.7
17.5
Net Amortised Dev.
0.3
0.9
0.3
Adjusted EBITDA
3.8
3.8
3.1
Profit after tax
0.3
0.6
0.2
Basic EPS - cents
0.37
0.77
0.23
 Platform Revenue growth of 11% new customers live and organic
growth
 Investment in scaling the business
 On track to meet FY15 guidance;
20% - 25% growth in Adj EBITDA
Continued growth in Platform Revenue and New Customers
© 2015 Datalex
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H1 2015 Balance Sheet
US$M
HY’15
HY’14
HY’13
Total Assets
45.0
42.0
38.6
 13% Increase in net cash
Receivables
12.0
12.2
11.0
 50% increase in dividend paid
Total Equity
34.0
33.5
31.9
Total Liabilities
10.9
8.5
6.7
 174% Increase in net cash
generated from operations.
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
 Continued focus on working
capital management
Strong Balance Sheet offers flexibility
© 2015 Datalex
7
Investment Highlights
Digital Commerce for Travel Retail
© 2015 Datalex
8
Key Investment Highlights
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
© 2015 Datalex
9
Large Addressable Market
Global Digital Commerce
~$1.6 Trillion
Digital Travel Commerce
~$500 Billion
Sources: Worldwide Digital Travel Sales: The eMarketer Forecast for 2015
© 2015 Datalex
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A Unique Strategic Asset for Airline Retailers
NO.1
WORLD’S
TRAVEL
MERCHANDISING
PLATFORM
>60
GLOBAL BRAND
CUSTOMERS
AND PARTNERS
>1 BILLION
STRONG
PRESENCE IN
HIGHEST
GROWTH
MARKETS
GLOBAL
SHOPPERS
© 2015 Datalex
11
Market Leader - Scale and Performance
$20 Billion
>1 Billion
>60
Revenue transacted by global retailers
through the Datalex Commerce
Platform
People use the Datalex Commerce
Platform annually to shop for their
travel needs
Global brand customers and partner
providers leverage the Datalex
Commerce Platform
$60 Million
$200 Million
150 Years
Invested to date in product innovation
Incremental annual operating income
forecast by JetBlue Airways from using
Datalex software
Software and travel technology
expertise in the Datalex leadership
team
24.6%
$10M
90%
Adj. EBITDA CAGR (2012 – 2014)
Net cash generated from operations in
2014
Contract renewal rates
© 2015 Datalex
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Market Leader – Digital Commerce for Travel Retail
Digital Commerce driving Revenue and
Loyalty for Global Travel Retailers
Future Proof Commerce
Shopping and Customer Insights
An Ecosystem of
Global Brand Customers and Partners
A Marketplace for travel retail
across all Sales Channels
© 2015 Datalex
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Powerful Commercial Model
 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
14
“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”
“As a key component in our digital
and retailing strategy, Brussels
Airlines has selected the Datalex
Platform to power our future
Internet retail website”
Robin Hayes
Xavier Lagardère
President
JetBlue
VP - Online Retail & Distribution
Brussels Airlines
© 2015 Datalex
15
“We look at the investment which
we have made in our partnership
with Annual
Datalex toIncremental
be significant… to
create
retail merchandising
Operating
Income
capability which is greatly
superior to what we have today”
>$200M
“As a key component in our digital
42%
and retailing strategy, Brussels
Airlines has Conversion
selected the Datalex
Increased
Rates
Platform to
forpower
B2C*our future
Internet retail website”
*JetBlue Investor Day, 14/11/14
Robin Hayes
Xavier Lagardère
President
JetBlue
VP - Online Retail & Distribution
Brussels Airlines
© 2015 Datalex
16
Proven Track Record*
Revenue (US$m)
Total Revenue
Adj. EBITDA (US$m) / Margin %
Platform Revenue
19.7%
41.4
38.1
7.5
6
15.7%
28.0
11.5%
13.0
2010
13.2
2011
14.7
2012
17.5
2013
19.5
2014
4.4
3.1
2010
2011
2012
2013
2014
Cash (US$m)
Cost / Revenue %
110.0%
8.5
18.5%
32.4
26.8
20.5%
108.0%
16.9
18.3
14.6
104.9%
11.1
12.5
98.8%
100.0%
96.1%
94.4%
90.0%
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
*All figures related to full year.
Continued Growth in Revenue and Adj. EBITDA
© 2015 Datalex
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Growth Strategy
Extend Product and Market Reach
© 2015 Datalex
18
Growth Drivers
1
2
Digital Commerce
Product Innovation and Excellence extends
product and market reach.
New Customer Acquisition and
Customer Development
3
An Ecosystem of global brand customers
and partner providers extends product and
market reach
© 2015 Datalex
19
Customer Growth and Acquisition
CUSTOMER DEVELOPMENT
 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
NEW CUSTOMER ACQUISITON
 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
© 2015 Datalex
20
Digital Commerce Excellence & Innovation
ONE SINGLE VIEW OF
CUSTOMER
CONTROL THE OFFER
PRICING
DATA
Commerce
Platform
SHOPPING
UNLOCK REVENUE AND LOYALTY
PAYMENTS
COMPLETE THE TRANSACTION
Agility and Travel Commerce Expertise
© 2015 Datalex
21
Digital EcoSystem
3RD PARTY CONTENT
APPS
LOYALTY
SOLOMO
PRICING
B2B Agencies
PSS
Digital Design
UX
CONTENT
SERVICES
PAYMENTS
DATA WAREHOUSE
CLOUD
DIGITAL WALLET
PSP’S
CREDIT MGT
INTEGRATORS
ALTERNATE
CRM
Enabling a Digital Marketplace
© 2015 Datalex
22
Summary & Outlook
© 2015 Datalex
23
Summary and Outlook
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
© 2015 Datalex
24
Appendices
© 2015 Datalex
25
Contacts
Datalex plc
Global HQ
Block U
East Point Business Park
Dublin 3
Ireland
Aidan Brogan
CEO
Executive Director
aidan.brogan@datalex.com
EVENT
David Kennedy
CFO
Executive Director
david.kennedy@datalex.com
+ 353 1 806 3500
US Toll Free: 1 888 234 1890
DATE
datalex.com
Interim Results
August 26th 2015
Q3 IMS
November 2015
info@datalex.com
@datalex
© 2015 Datalex
26
Management Team
Team with over
150 years
executive experience in
travel ecommerce,
technology,
infrastructure and retail
markets.
© 2015 Datalex
27
Corporate Information
ANALYST COVERAGE
LISTING PARTICULARS
Exchange
Irish Stock Exchange
Ticker
ISE:DLE
Goodbody
Panmure Gordon
Issued Share Capital
Jack Diskin
jack.w.diskin@goodbody.ie
Peter Smedley
peter.smedley@panmure.com
75.0m
Davy
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%
Ross Harvey
ross.harvey@davy.ie
Investec
Conor MacCarrick
conor.maccarrick@investec.ie
Cantor Fitzgerald
Shane Kelly
skelly@cantor.com
© 2015 Datalex
28