Transcript MICROS Systems, Inc. FY2014 Investor Presentation

MICROS Systems, Inc.
FY2014 Investor Presentation
December 2013
Safe Harbor Statement
This presentation contains forward-looking statements and information –
that is, statements related to future, not past, events.
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These statements may be identified either orally or
in writing by words as “expects”, “anticipates”,
“intends”, “plans”, “believes”, “seeks”, “estimates”,
“will” or words of similar meaning. Such
statements are based on our current expectations
and certain assumptions, and are, therefore,
subject to certain risks and uncertainties. A variety
of factors, many of which are beyond MICROS
Systems, Inc. control, affect its operations,
performance, business strategy and results and
could cause the actual results, performance or
achievements of MICROS Systems, Inc.
worldwide to be materially different from any future
results, performance or achievements that may be
expressed or implied by such forward-looking
statements. For us, particular uncertainties arise,
among others, from changes in general economic
and business conditions, changes in currency
exchange rates and interest rates, introduction of
competing products or technologies by other
companies, lack of acceptance of new products or
services by customers targeted by MICROS
Systems, Inc. worldwide, changes in business
strategy and various other factors. More detailed
information about certain of these factors is
contained in MICROS Systems, Inc. filings with
the SEC, which are available on the MICROS
Systems, Inc. website, www.micros.com and on
the SEC’s website, www.sec.gov. Should one or
more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect,
actual results may vary materially from those
described in the relevant forward-looking
statement as anticipated, believed, estimated,
expected, intended, planned or projected MICROS
Systems, Inc. does not intend or assume any
obligation to update or revise these forwardlooking statements in light of developments which
differ from those anticipated.
MICROS at a Glance
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MICROS at a Glance
Vision
 To be the leading provider of industry
specific enterprise applications and related
services and hardware to the Food & Beverage,
Hotel and Retail Industries
Key Value Drivers
 Complete-solution provider:
software + services + hardware
 Global sales and service infrastructure
 Focused R&D effort driving real innovation
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Company Strengths
 Applications with mission-critical functionality, superior reliability
and deep domain expertise
 Broad product suite capable of covering many market segments
-Primary focus on complex, higher end applications
 Extensive range of services
-Recurring revenue increasing to 45% of total revenue
-Significant focus on Hosted & SaaS applications
 Flexible technology stack
-Hosted/on premise/mobile
-MICROS and OEM hardware
-Extensive third-party integration
 Global footprint
-Over 6,500 + associates in over 50 countries
-Headquarters-Columbia, Maryland USA
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FY2013 Business Views
Vertical Revenue
Regional Revenue
5%
44%
38%
25%
13%
38%
EAME
US/CAN
37%
AP
F&B
LA
Lines of Business
11%
21%
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Services
68%
Hardware
Software
Hotels
Retail
MICROS Financials: FY2013 vs. FY2012
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$ Amount
$ Change
% Change
Revenue
$1.268B
+$160.6M
+14.5% reported growth
-0.9% organic growth
Free Cash Flow
$176.0M
+$20.7M
+13.3%
GAAP
Operating Income
$227.0M
-$7.5M
-3.2%
Non-GAAP
Operating Income
$259.5M
+8.1M
+3.2%
GAAP Net Income
$171.4M
+$4.4M
+2.7%
Non-GAAP
Net Income
$191.9M
+9.3M
+5.1%
GAAP EPS
$2.12
+$0.09
+4.4%
Non-GAAP EPS
$2.38
+$0.16
+7.2%
MICROS Market Verticals
Food & Beverage
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200k+ sites
Table Service
Quick Service
Stadiums/Arenas
Theme Parks
Cruise Ships/Airports
Hotels
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30k + sites
Chains 20k + sites
Luxury Resorts
Limited Service
Casinos
Cruise Ships
Retail
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100k+ sites
Specialty Retail
Hard Goods
Grocery
Petro/Convenience
Omni-Channel
We are a Complete Solutions Provider
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Software
Services
Hardware
 Vertical enterprise
platforms
 Help desk
 Industry specific
 Global platforms
 Field hardware support  POS terminals
 On-Premise
 Installation services
 Printers
 Hosted/SaaS platforms
 Hosting/SaaS centers
 Peripherals
 Mobile
 Payments gateway
 Kitchen displays
 Custom development
 Custom development
 Customer displays
 Third-Party APIs
 eCommerce services
 Third-party reseller
Food & Beverage Product Functionality
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Food & Beverage Product Functionality
Order
communication and
chef direction
through POS (KDS)
POS
Central order & credit card
processing, loyalty/gift cards
programs & electronic
payments
Kitchen
& Pantry
POS
F&B
POS
POS
Dining
Room
ELECTRONIC
MENU
MOBILE
POS
Restaurant
lobby
Denotes digital signage
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Central reservation
& delivery order
system,
consolidating from
all online platforms
Business intelligence
reporting capabilities direct
to the corporate office
Kitchen & Pantry
inventory
management,
employee labor
log & loss
prevention
Food & Beverage Product Functionality
Front of House
Order Processing
POS Terminals
Credit Card Authorization
Cash Management
Kitchen Operations
Guest Services
Kiosk
Table Management
Mobile Payments
Restaurant Reservations
On-Line Ordering
Digital Menu Boards
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Back of House
Labor Management
Product Management
Financial Management
Gift/Loyalty Card Management
Loss Prevention
Transaction Analyzer
Data Reporting
Kitchen Printing
Integration to Hotel Systems
Kitchen Display Systems
Corporate
Inventory Management
Labor Management
Menu Management
Financial Management
Business Intelligence Reporting
Loss Prevention
Gift / Loyalty Programs
Online Ordering
eCommerce
Social Media
Web Site Development
Web Site Hosting
Marketing Programs
Hotel Product Functionality
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Hotel Product Functionality
Room reservation,
entertainment purchases
& in-room dining
Spa Check-in
Spa
POS
F&B
POS
Front Office
CRS /
CIS
PROPERTY
MANAGEMENT
In-house
Restaurant
S&C
Gift Shop
RETAIL
POS
Mobile
Check-in
Check-in / Check-out:
all inbound reservations
S&C
Denotes digital signage
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Function
management
Corporate Office:
inbound reservation
management &
outbound
promotional
marketing, electronic
payments
Hotel Product Functionality
Property Level
Check In / Check Out
Payment Applications
Room Reservations
Catering and Events
Room Blocks
Sales & Catering
Function Space Management
Banquet Posting
Heath Spa & Golf Scheduling
Mixed Properties w/ Condos
Accounting
Reporting
Revenue Management
Mobile Reservations
Web Sites and Social Media
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Corporate Level
Enterprise Reservations
Room Inventory
Multiple Hotels
Guest Profiles
Loyalty Programs
Web Booking Engine
Customer Relationship Mgmt
Sales Force Automation
Revenue Management
GDS Interface
eCommerce
Web Site Development
Web Site Hosting
Social Media
Distribution Level
Room Inventory for Hotels
around the world.
GDSs
Sabre
Galileo
Amadeus
Worldspan
OTAs
Myfidelio.net
Expedia
Travelocity
Hotels.com
Retail Product Functionality
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Retail Product Functionality
Business
intelligence
reporting direct to
corporate
headquarters
POS
Retail inventory
management,
employee labor
log, loss
prevention
Office
RETAIL
POS
Stock room
Check-out
Omni-channel /
Sales &
Ordering
Denotes digital signage
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MOBILE
POS
Mobile POS,
ordering,
loyalty/gift cards
programs &
electronic
payments
Direct to
warehouse
communication
Retail Product Functionality
In Store
POS Transactions
Layaway / Special Order
Item Locator
Alterations & Repair Tracking
Best Deal Pricing
Work Order Management
Customer/Purchase History
Return Validation
Gift/Loyalty Cards
Payment Authorizations
Mobile Ordering
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Back of House
Store Administration
Real Time CRM Integration
Labor Management
Merchandising
Sales Productivity
SKU Ordering
Inventory Shipping/Receiving
Queries & Reporting
Real Time Alerts
Loss Prevention
Corporate
Cross Channel Management
Inventory Management
Financial Management
Marketing
Auditing
Business Intelligence Reporting
Loss Prevention
eCommerce
Web Site Development
Web Site Hosting
Social Media
FY2013: Year In Review
 Integration of Torex-good revenue growth
but lower margin business
 Global macro issues in Europe & US resulting
in negative organic growth
 Strong growth in Asia/Pacific and Latin America
 Major success with global chain wins-all verticals
 Technology driving both competitive threats and
comparative advantage
 Implemented vertical leadership teams
 Began process towards global R&D and Hosting/SaaS teams
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MICROS Financially Strong FY2013
Cash $634.1M
Fiscal 2013
ROE 15.5%
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Free cash flow
$176.0M
Aggressive stock
repurchase plan
in place-$176.6M
of shares
repurchased
Fiscal 2013
ROA 10.9%
Fiscal 2013
Book Value
$14.53 (6.8%
increase YOY)
5-Year Financial View
Revenue
Non-GAAP Operating Income
$ in Millions
$ in Millions
$1,268
$1,400
$1,200
$1,000
$908
$914
$1,008
$300
$1,108
$226
$250
$200
$800
$259
2012
2013
$180
$159
$150
$600
$100
$400
$50
$200
$0
$0
2009
2010
2011
2012
2009
2013
2010
Non-GAAP EPS
$ per Share
Fiscal Years
Ending June 30
$2.50
$1.92
$2.00
$1.50
$1.34
$2.22
$2.38
$1.57
$1.00
$0.50
$0.00
2009
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$251
2010
2011
2012
2013
2011
Selected MICROS Clients
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Select Recent Client Wins
Food & Beverage
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Starwood Hotels Selects Simphony as Next-Generation F&B Platform
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Compass Group North America Selects Simphony
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SONIC Corp. selects MICROS Restaurant Enterprise Series
Hotels
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Marriott Selects MICROS OPERA as Global Platform
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Louvre Hotels Renews OPERA Cloud Service for 5 Years
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Dolce Hotels Rollouts OPERA 9 Mobile Front Desk
Retail
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Charlotte Russe Selects MICROS Commerce Platform
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Steve Madden Selects Xstore, Mstore & CRM Solutions
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C&A Brazil Selects Lucas Retail Platform
FY2014 To Date
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FY2014 To Date
 Focus on sales growth & pipeline
 Stronger global account management
 Implementing company-wide client
satisfaction surveys
 Winning major new
chains…regionally… globally
 R&D organization formed, leader on board
 CIO Hosting/SaaS organization formed, leader on board
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MICROS Financials: FY2014-Q1
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$ Amount
$ Change
% Change
Revenue
$314.8
+$14.9M
+5.0%
Free Cash Flow
$49.0M
+$43.0M
+713.8%
GAAP
Operating Income
$52.4M
-$0.8M
-1.6%
Non-GAAP
Operating Income
$61.1M
+0.9M
+1.5%
GAAP Net Income
$32.3M
-8.8M
-21.4%
Non-GAAP
Net Income
$38.6M
-7.8M
-16.9%
GAAP EPS
$0.42
-$0.08
-16.0%
Non-GAAP EPS
$0.50
-$0.07
-12.3%
FY2014 Guidance
$ Amount
% Change
Revenue Goal
$1.295B to $1.320B
2.1% to 4.1% Growth
Non-GAAP EPS
$2.46 to $2.50
3.4% to 5.0% Growth
A return to organic growth…
while making long term investments
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Global Sales, Service, & Infrastructure
United States/Canada
FY2013 Revenue 38%
2,558 Associates
Denver
Asia Pacific
FY2013 Revenue 13%
614 Associates
Galway
London Dusseldorf
Frankfurt
Cleveland
Buffalo
Washington /
Columbia
Shanghai
Naples
Mexico
City
EAME
FY2013 Revenue 44%
2,957 Associates
UAE
Singapore
Latin America
FY2013 Revenue 5%
377 Associates
Sao Paulo
Buenos Aires
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Sydney
MICROS Stock Performance: 5-Year View
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Thank You
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