GXS Worldwide Inc.GXS Worldwide Inc.Corporate OverviewCorporate OverviewCorporate Overview
Needham & Company | 13th Annual Growth Conference
Corporate Overview
Needham & Company | 13th Annual Growth ConferenceNeedham & Company | 13th Annual Growth Conference
January 13th, 2010
Needham & Company | 13th Annual Growth Conference
January 13th, 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.
January 13, 2011 | Slide 2 © 2011 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 professionalsprovider earned internationally 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
January 13, 2011 | Slide 3 © 2011 GXS, Inc.
Leading Provider of B2B Cloud Integration ServicesIntegration 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
January 13, 2011 | Slide 4 © 2011 GXS, Inc.
data translation services all delivered on demand in the cloud
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”
January 13, 2011 | Slide 5 © 2011 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
Diversified Customer Base
RetailRetail
CPG
Auto & Transport
Hi Tech
Financial S i
January 13, 2011 | Slide 6 © 2011 GXS, Inc.
Services
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 tf f 2000 t 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 time zones languages customs
January 13, 2011 | Slide 7 © 2011 GXS, Inc.
time zones, languages, customs, standards
Suppliers & Original Design Manufacturers
Attractive Growth Financial ProfileProfitable, Recurring Revenue BaseProfitable, Recurring Revenue Base
Quarterly Revenue Quarterly Adjusted EBITDA(1)
(As Reported, $MM) (As Reported, $MM)
$31$33
$32 $33
$38$40
$87 $89 $91$98
$114
$100
$120
( p ) ( p )
+14%growth
YTDvs 2009
$25 $25
$20
$30$84 $87 $89 $$85
$60
$80
$10
$20
$40
$60
$0Q109 Q209 Q309 Q409 Q110 Q210 Q310
$0
$20
Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q109 Q209 Q309 Q409 Q110 Q210 Q310Q109 Q209 Q309 Q409 Q110 Q210 Q310
Strong, stable top-line performance with ~88% recurring revenue Continued investment in value-added application services to further enhance Managed Services growth Synergies from Inovis merger starting to take effect
January 13, 2011 | Slide 8 © 2011 GXS, Inc.
(1) Please refer to GXS’ Quarterly Report on Form 10-Q dated November 10, 2010, GXS’ Current Report on Form 8-K dated September 3, 2010 and Form S-4A dated July 27,2010 for the reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures and other related disclosures.
Rapidly Growing Managed Services BusinessBusiness
Managed Services Revenue Growth
Strong New Business Pipeline and Quality Customer Base
$463$427 $455
$400
$500+31% YoY
Growth
Revenue Growth and Quality Customer Base($MM) ($MM) Managed Services Pipeline
$82
$100
$341
$100
$200
$300
$400
$59
$72
$82 $79
$60
$80
$0
$100
12/31/2008 9/30/2009 12/31/2009 9/30/2010Sample Customers:
$43$40
$0
$20
400 C t b ith t t i i 100% YTD 3Q10 YTD 3Q09
$02006 2007 2008 2009 YTD 3Q10
January 13, 2011 | Slide 9 © 2011 GXS, Inc.
400+ Customer base with contract signings up 100% YTD 3Q10 versus YTD 3Q09
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
January 13, 2011 | Slide 10 © 2011 GXS, Inc.
Questions
Bob SegertPresident & CEO
North America | gxs.com EMEA | gxs.eu ASPAC | gxs.asia.com
January 13, 2011 | Slide 11 © 2011 GXS, Inc.
