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December 2013 MICROS Systems, Inc. FY2014 Investor Presentation
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Page 1: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

December 2013

MICROS Systems, Inc. FY2014 Investor Presentation

Page 2: 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.

Page 3: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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MICROS at a Glance

Page 4: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 6: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 7: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 8: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 9: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 10: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 12: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 13: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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Hotel Product Functionality

Page 14: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

14

Page 15: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 16: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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Retail Product Functionality

Page 17: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 18: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 19: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

2

$2.22

$1.34

$2.38

Non-GAAP EPS$ per Share

5-Year Financial View

Page 22: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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Selected MICROS Clients

Page 23: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 24: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 28: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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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

Page 29: December 2013 MICROS Systems, Inc. FY2014 Investor Presentation.

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MICROS Stock Performance: 5-Year View

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Thank You