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GXS Worldwide Inc. GXS Worldwide Inc. Corporate Overview 2010 Citi North American Credit Conference Corporate Overview 2010 Citi North American Credit Conference November 18 th , 2010 November 18 th , 2010

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Page 1: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

GXS Worldwide Inc.GXS Worldwide Inc.

Corporate Overview2010 Citi North American Credit Conference

Corporate Overview2010 Citi North American Credit Conference

November 18th, 2010November 18th, 2010

Page 2: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Forward Looking Statements gCERTAIN FORWARD-LOOKING STATEMENTS:

The information set forth in the presentation materials, as well as statements made by representatives of the Company during the course of the presentation, include “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All

h h f hi i l f d d i h f hstatements, other than statements of historical facts, made during the course of the presentation, that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are affected by risks, uncertainties and assumptions.forward looking statements are affected by risks, uncertainties and assumptions. Accordingly, actual results or outcomes may differ materially from those expressed in the forward-looking statements. You should not place undue reliance on these statements and we undertake no obligation to update or revise any forward-looking statements to reflect

t i t th t ievents or circumstances that may arise.

November 18, 2010 | Slide 2 © 2010 GXS, Inc.

Page 3: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

GXS Todayy

Award winning B2B e-commerce cloud

integration services provider

Headquartered outside of Washington DC,

with 40%+ revenues earned internationally

Approximately 40,000 customers in 50+

countries and 2,700 B2B e-commerce professionals

88% recurring revenue History of successful Servicing 70% of the88% recurring revenue stream with strong

cash flow generation

History of successful acquisitions to

expand scale and drive growth

Servicing 70% of the Fortune 500 and ~50% of

the Global 2000

November 18, 2010 | Slide 3 © 2010 GXS, Inc.

Page 4: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Leading Provider of B2B Cloud Integration ServicesB2B Cloud Integration Services

InventoryInventoryTrackingOrder

Acceptance

OrdersShip Notice

DeliveryNotice

Invoices

RemittanceAdvice

Notice

Payment Advice

BuyersSuppliers

yInstructions

The GXS Trading Grid® supports multiple network protocols, message formats and file sizes providing data transport, event

monitoring and visibility, supplier management, collaboration, and

November 18, 2010 | Slide 4 © 2010 GXS, Inc.

data translation services all delivered on demand in the cloud

Page 5: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Our Vision: Unleash the Power of B2B Information“Leveraging our Global Community as a Platform”

GXS Trading Grid® Delivers Operational Intelligence Through Unique Business Services and Applications that Capitalize on B2B Integration, Collaboration, and

Leveraging our Global Community as a Platform

Business Process Execution Knowledge

End-to-End D t

Dashboards& Document

TrackingGeoExpansion

Electronic Invoicing

&Analytics

VAN Consolidation Customer

Penetration

M&A

Logistics Visibility

Industry Expansion

Price and PromotionsPromotions

Inventory Visibility

TradeVisibility

Cash Management

November 18, 2010 | Slide 5 © 2010 GXS, Inc.

Page 6: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Solutions OverviewGXS Services and Solutions 2009 Pro Forma Revenue Mix

C usto m Outso urcing

D ata Synchro nizat io n

8%

B2B cloud network for real time exchange of electronic documents and data between business partners around the world through the GXS Trading Grid®

Messaging Services

7%B 2B So ftware &

Services10%

the GXS Trading GridOn demand cloud integration

services managing customers’ B2B infrastructures, including on-boarding of trading partners and

Managed Services

Serv

ices

M anaged Services

22%

boarding of trading partners and mapping / translation services

Software and services that allow customers to effectively manage their day-to-day supply chain and

B2B Software & ServicesC

ore

B2B

S

M essaging Services

53%

y y pp yMFT activities internally

Product item catalog and software services enabling retail communities to operate more

Data Synchronization

ServicesC

pefficiently

Custom software and messaging solutions, which consist of applications and products

2009 Pro Forma Revenue: $487M

y

Custom Outsourcing

November 18, 2010 | Slide 6 © 2010 GXS, Inc.

developed to address specific customer needs

g

Page 7: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Diversified Customer Base

RetailRetail

CPG

Auto & Transport

Hi Tech

Financial S i

November 18, 2010 | Slide 7 © 2010 GXS, Inc.

Services

Page 8: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Recognized Industry Leadership

“GXS is still by far the leading provider of integration services, as measured by

integration service revenue, international reach and customer base.”

“GXS has a strong focus on providing complete managed services for B2B

integration”

November 18, 2010 | Slide 8 © 2010 GXS, Inc.

Source: Gartner Research Note G00172249, “Magic Quadrant for Integration Service Providers,” 20 November 2009

Source: Forrester, The Forrester Wave: B2B Service Providers, Q4 2009, October 2009

Page 9: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

GXS Enables “A New Path to Market”

Supply Chain Approach• Recognized leadership in build-to-order,

Dell’s GXS Enabled Supply Chain EcosystemRecognized leadership in build to order, direct-to-customer model

• Adding retail channel in addition to traditional direct-to-consumer model

• Strategy to increasingly leverage 3rd

Retailers Hospitals Corporate Clients

Strategy to increasingly leverage 3party Original Design Manufacturers (versus Dell-owned plants)

GXS SolutionPurchase OrdersShipment NoticeProof of Delivery

Electronic InvoiceService Dispatches

Warranty Parts • Fully managed service including hosting, on-boarding, tech support

• Decommissioned over 200 servers, 20 data center racks, 20 private circuitsSi l l f f 2000 di

Dell ERP Dell ERP

Proof of Delivery Warranty Parts

• Single platform for 2000 trading partners & 5M transactions/daily

• Timeframes for on-boarding of suppliers and customers from months to daysV i bl t ffi t t t il

Shipment NoticeElectronic Invoice

Manufacturing ForecastsPurchase Order

• Variable staffing to support retailer on-boarding, new product introductions and new manufacturing plants

• Supports retailers with diverse range of ti l t

November 18, 2010 | Slide 9 © 2010 GXS, Inc.

time zones, languages, customs, standardsSuppliers & Original Design Manufacturers

Page 10: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Driving a New Growth Engine: Managed ServicesServices

Managed Services Revenue Growth

Strong New Business Pipeline and Quality Customer Base

$341

$427 $455

$400

$500

$82

$100 +31% YoY

Growth

Revenue Growth and Quality Customer Base($mm) ($mm) Managed Services Pipeline

$341

$100

$200

$300

$59

$72

$82 $79

$60

$80

$0

$100

12/31/2008 12/31/2009 9/30/2010$43

$40Sampling of customers:

$0

$20

$02006 2007 2008 2009 YTD 3Q10

400 C t b ith t t i i 100% YTD 3Q10 YTD 3Q09

November 18, 2010 | Slide 10 © 2010 GXS, Inc.

400+ Customer base with contract signings up 100% YTD 3Q10 versus YTD 3Q09

Page 11: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Summary Financial Results$$ In millions

Pro Forma Operations

Q3 YTD Sept 30th

2009(1) 2010(2) 2009(1) 2010(2)

Revenue 124.9 115.5 362.1 352.7

Combined Company Adjusted EBITDA 46.2 38.1 123.7 114.0

Pro rated Net Synergies 3.5 16.3

Pro forma Adjusted EBITDA 41.6 130.2Pro forma Adjusted EBITDA 41.6 130.2

Pro forma Adjusted EBITDA % 36.0% 36.9%

Senior Debt / AnnualizedSenior Debt / Annualized Pro forma Adjusted EBITDA 4.72x 4.52x

Cash Balance 25.6 30.8

November 18, 2010 | Slide 11 © 2010 GXS, Inc.

(1) – Combined standalone operations(2) – Combined standalone operations plus June merged operations

Page 12: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Summary Highlights

Leading B2B gCloud

Integration PlatformProven and

E i dRapidly

Experienced Management

Team

Growing Managed Services Business

Recurring Revenue Base

and Strong Free Cash Flow

Scalable Global Infrastructure and Domain

ExpertiseFree Cash Flow ExpertiseDiverse, Broad-based Marquis

Customers

November 18, 2010 | Slide 12 © 2010 GXS, Inc.

Page 13: GXS Worldwide Inc.2010/11/18  · customers to effectively manage their day-to-day supply chain and B2B Software & Services C ore B2B Messaging Services 53% yppy MFT activities internally

Questions

Bob SegertPresident & CEO

North America | gxs.com EMEA | gxs.eu ASPAC | gxs.asia.com

November 18, 2010 | Slide 13 © 2010 GXS, Inc.