gxs worldwide inc.2010/11/18 · customers to effectively manage their day-to-day supply chain and...
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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
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.
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.
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
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.
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
Diversified Customer Base
RetailRetail
CPG
Auto & Transport
Hi Tech
Financial S i
November 18, 2010 | Slide 7 © 2010 GXS, Inc.
Services
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
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
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
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
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.
Questions
Bob SegertPresident & CEO
North America | gxs.com EMEA | gxs.eu ASPAC | gxs.asia.com
November 18, 2010 | Slide 13 © 2010 GXS, Inc.