December 2013 MICROS Systems, Inc. FY2014 Investor Presentation
Mar 28, 2015
December 2013
MICROS Systems, Inc. FY2014 Investor Presentation
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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 forward-looking statements in light of developments which differ from those anticipated.
Safe Harbor Statement
This presentation contains forward-looking statements and information – that is, statements related to future, not past, events.
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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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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
Company Strengths
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Regional Revenue
EAME US/CAN AP LA
44%
38%
Vertical Revenue
F&B Hotels Retail
38%
37%
25%
Lines of Business
Services Hardware Software
68%
11%
13%
5%
21%
FY2013 Business Views
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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 Financials: FY2013 vs. FY2012
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Food & Beverage Hotels Retail
200k+ sites Table Service Quick Service Stadiums/Arenas Theme Parks Cruise Ships/Airports
30k + sites Chains 20k + sites Luxury Resorts Limited Service Casinos Cruise Ships
100k+ sites Specialty Retail Hard Goods Grocery Petro/Convenience Omni-Channel
MICROS Market Verticals
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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
We are a Complete Solutions Provider
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Food & Beverage Product Functionality
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Kitchen & Pantry inventory
management, employee labor
log & loss prevention
POS
Restaurant lobby
Central order & credit card processing, loyalty/gift cards
programs & electronic payments
Central reservation & delivery order
system, consolidating from all online platforms
F&B POS
Order communication and
chef direction through POS (KDS)
POS
Kitchen & Pantry
Business intelligence reporting capabilities direct
to the corporate office
POS
MOBILEPOSELECTRONIC
MENU
Dining Room
Food & Beverage Product Functionality
Denotes digital signage
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Corporate
Inventory ManagementLabor ManagementMenu Management
Financial ManagementBusiness Intelligence Reporting
Loss PreventionGift / Loyalty Programs
Online OrderingeCommerceSocial Media
Web Site DevelopmentWeb Site Hosting
Marketing Programs
Front of House
Order ProcessingPOS Terminals
Credit Card AuthorizationCash ManagementKitchen Operations
Guest ServicesKiosk
Table ManagementMobile Payments
Restaurant ReservationsOn-Line Ordering
Digital Menu Boards
Back of House
Labor ManagementProduct Management
Financial ManagementGift/Loyalty Card Management
Loss PreventionTransaction Analyzer
Data ReportingKitchen Printing
Integration to Hotel SystemsKitchen Display Systems
Food & Beverage Product Functionality
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Hotel Product Functionality
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In-house Restaurant
RETAIL POS
S&C
Check-in / Check-out: all inbound reservations
Spa Check-in
Gift Shop
Spa
Room reservation, entertainment purchases
& in-room dining
Corporate Office: inbound reservation
management & outbound
promotional marketing, electronic
payments
Front Office
F&BPOS
S&C
Function management
MobileCheck-in
CRS /CIS
PROPERTY MANAGEMENT
POS
Hotel Product Functionality
Denotes digital signage
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Property Level
Check In / Check OutPayment Applications Room ReservationsCatering and Events
Room BlocksSales & Catering
Function Space ManagementBanquet Posting
Heath Spa & Golf SchedulingMixed Properties w/ Condos
AccountingReporting
Revenue ManagementMobile Reservations
Web Sites and Social Media
Corporate Level
Enterprise ReservationsRoom InventoryMultiple HotelsGuest Profiles
Loyalty ProgramsWeb Booking Engine
Customer Relationship MgmtSales Force AutomationRevenue Management
GDS InterfaceeCommerce
Web Site DevelopmentWeb Site Hosting
Social Media
Distribution Level
Room Inventory for Hotels around the world.
GDSsSabre
GalileoAmadeus
Worldspan
OTAsMyfidelio.net
ExpediaTravelocityHotels.com
Hotel Product Functionality
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Retail Product Functionality
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POS
RETAIL POS
Stock room
Office
Check-out
Retail inventory management,
employee labor log, loss
prevention
Direct to warehouse
communication
Business intelligence
reporting direct to corporate
headquarters
Mobile POS, ordering,
loyalty/gift cards programs & electronic payments
MOBILEPOS
Omni-channel / Sales & Ordering
Retail Product Functionality
Denotes digital signage
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Back of House
Store AdministrationReal Time CRM Integration
Labor ManagementMerchandising
Sales ProductivitySKU Ordering
Inventory Shipping/ReceivingQueries & Reporting
Real Time AlertsLoss Prevention
In Store
POS TransactionsLayaway / Special Order
Item LocatorAlterations & Repair Tracking
Best Deal PricingWork Order Management
Customer/Purchase HistoryReturn ValidationGift/Loyalty Cards
Payment AuthorizationsMobile Ordering
Corporate
Cross Channel ManagementInventory ManagementFinancial Management
MarketingAuditing
Business Intelligence ReportingLoss Prevention
eCommerceWeb Site Development
Web Site HostingSocial Media
Retail Product Functionality
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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%
Free cash flow $176.0M
Fiscal 2013 ROA 10.9%
Aggressive stock repurchase plan in place-$176.6M
of shares repurchased
Fiscal 2013 Book Value
$14.53 (6.8% increase YOY)
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2009 2010 2011 2012 2013$0
$200
$400
$600
$800
$1,000
$1,200
$1,400$ in Millions
$914$1,008
$1,108
$908
$1,268
Fiscal Years Ending June 30
Revenue
2009 2010 2011 2012 2013$0
$50
$100
$150
$200
$250
$300
$159
$226
$180
$251 $259
Non-GAAP Operating Income$ in Millions
2009 2010 2011 2012 2013$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$1.57$1.9
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$2.22
$1.34
$2.38
Non-GAAP EPS$ per Share
5-Year Financial View
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Selected MICROS Clients
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Select Recent Client Wins
Food & Beverage
Starwood Hotels Selects Simphony as Next-Generation F&B Platform
Compass Group North America Selects Simphony
SONIC Corp. selects MICROS Restaurant Enterprise Series
Hotels
Marriott Selects MICROS OPERA as Global Platform
Louvre Hotels Renews OPERA Cloud Service for 5 Years
Dolce Hotels Rollouts OPERA 9 Mobile Front Desk
Retail
Charlotte Russe Selects MICROS Commerce Platform
Steve Madden Selects Xstore, Mstore & CRM Solutions
C&A Brazil Selects Lucas Retail Platform
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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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$ 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%
MICROS Financials: FY2014-Q1
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A return to organic growth…while making long term investments
$ 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
FY2014 Guidance
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Washington / Columbia
LondonFrankfurtDusseldorf
Buenos AiresSydney
UAE
Singapore
Denver
Mexico City
Sao Paulo
Buffalo
Galway
Shanghai
Cleveland
Naples
Asia PacificFY2013 Revenue 13%614 Associates
Latin AmericaFY2013 Revenue 5%377 Associates
EAMEFY2013 Revenue 44%2,957 Associates
United States/CanadaFY2013 Revenue 38%2,558 Associates
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Global Sales, Service, & Infrastructure
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MICROS Stock Performance: 5-Year View
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Thank You