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FY2013 MICROS Shareholder Meeting. November 22, 2013. Safe Harbor Statement.
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FY2013 MICROS Shareholder Meeting November 22, 2013
Safe Harbor Statement 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 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 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 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. This presentation contains forward-looking statements and information – that is, statements related to future, not past, events.
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
Company Strengths • Applications with mission-critical functionality, superior reliability & 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
FY2013 Business Views 5% 13% 21%
Food & Beverage Product Functionality Corporate Front of House 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 Inventory Management Labor Management Menu Management Financial Management Business Intelligence Reporting Loss Prevention Gift / Loyalty Programs Online Ordering eCommerce Social Media Marketing Programs 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
Hotel Product Functionality Distribution Level Property Level Corporate 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 Enterprise Reservations Room Inventory Multiple Hotels Guest Profiles Loyalty Programs Web Booking Engine Customer Relationship Mgmt Sales Force Automation Revenue Management GDS Interface eCommerce Social Media Room Inventory for Hotels around the world. GDSs Sabre Galileo Amadeus Worldspan OTAs Myfidelio.net Expedia Travelocity Hotels.com
Retail Product Functionality In Store Back of House Corporate 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 Cross Channel Management Inventory Management Financial Management Marketing Auditing Business Intelligence Reporting Loss Prevention eCommerce Social Media Store Administration Real Time CRM Integration Labor Management Merchandising Sales Productivity SKU Ordering Inventory Shipping/Receiving Queries & Reporting Real Time Alerts Loss Prevention
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
MICROS Financially Strong FY2013 • Cash $634.1M • Free cash flow $176.0M • Aggressive stock repurchase plan in place-$176.6M of shares repurchased • Fiscal 2013 ROE 15.5% • Fiscal 2013 ROA 10.9% • Fiscal 2013 Book Value $14.53 (6.8% increase YOY)
5-Year Financial View Non-GAAP Operating Income Revenue $ in Millions $ in Millions $1,268 $259 $251 $1,108 $1,008 $226 $914 $908 $180 $159 Non-GAAP EPS $ per Share $2.38 Fiscal Years Ending June 30 $2.22 $1.92 $1.57 $1.34
Select FY2013 Customer Wins Food & Beverage • Starwood Hotels Selects Simphony as Next-Generation F&B Platform • Compass Group North America Selects Simphony • Auntie Anne’s Pretzels & Carvel Ice Cream Select e7 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
FY2014 To Date • Focus on sales growth & pipeline • Stronger global account management • Implementing company-wide customer satisfaction surveys • Winning major new chains…regionally… globally • R&D organization formed, leader on board • CIO Hosting/SaaS organization formed, leader on board
FY2014 Guidance A return to organic growth…while making long term investments
Global Sales, Service, & Infrastructure United States/Canada FY2013 Revenue 38% 2,558 Associates Asia Pacific FY2013 Revenue 13% 614 Associates Galway Dusseldorf London Cleveland Frankfurt Denver Buffalo Washington / Columbia Shanghai Naples MexicoCity EAME FY2013 Revenue 44% 2,957 Associates UAE Singapore Latin AmericaFY2013 Revenue 5% 377 Associates Sao Paulo BuenosAires Sydney 18