Torex Retail Acquisition of Savista
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Transcript of Torex Retail Acquisition of Savista
Torex Retail Acquisition of Savista
April 2006
Page Page 22
About Savista
• Leading international QSR software and services company
• Global POS provider to McDonalds – one of the worlds largest retailers
• US company with world class, low cost development facility in Brazil
• Market leading product already installed in 5200 stores ( 30, 000 terminals ) in 66 countries – No. 1 in US Enterprise QSR in 2005
• Rapidly growing highly profitable business
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The North American Restaurant Software Market
• The N. American Restaurant Software market is estimated at over $1 billion
• POS Software, representing approximately half this figure in 2003, was $521 million and is expected to grow to nearly $900 million by 2008
• McDonalds have not yet rolled out Torex NewPOS in the US
$412.5
$1,051.6$1,837.7
16.5 17.9 19.5 21.4 23.4
N. America Store Systems Spend by Category
Store Systems Software
Professional
Services
Hardware
Related
$520.6$646.4
$787.4 $814.0
$531.0
$640.9
$644.3$717.1
$743.2 $761.2
$896.2$875.3
2003 2004 2005 2006 2007 2008
POS Back Office & BISource: IHL Consulting Group Study 2004
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POS Software Platforms A Fragmented Market
Top 10 Chains
Small Independents
EnterprisePlatforms
PackagedApplications
Compris
PAR
Micros
Micros ChannelAloha Channel
HSI
In-house
Proprietary
Systems
Electronic Cash Registers (ECRs):,Panasonic, Sharp
RadiantAloha
Xpient
Digital Dining
SquirrelPositouch
Breakaway
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QSR Market opportunity
A significant number of systems are at the end of their life cycles using outdated software, processors and operating systems
Industry is on the cusp of unprecedented activity - International QSR’s are currently seeking replacement systems:
•McDonalds – 33,000 sites ( already decided for Torex NewPOS)•Starbucks - 11,000 sites•Burger King - 11,000 sites•Yum (Taco Bell, KFC and Long John Silver’s) - 19,000 sites•Wendy’s - 9,700 sites
Factors contributing to the demand•Technology has finally reached Operations executives’ agenda•Global standardisation of IT promotes common operational practice worldwide reducing cost and increasing innovation•Industry’s top brands are extending their leadership through technology•The move from Proprietary to Open POS Systems is accelerating innovation and reducing costs of new features and operating processes
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SavistaTremendous Growth Opportunity
Standalone• McDonalds – POS and customer service extensions• Target top 100 QSR chains – sales pipeline $50m• Distributors
Torex Effect• Cross selling to McDonalds – acquisition by Torex solves
McDonalds “problem” with Savista by providing scale and global reach • Accelerate POS roll out• Systems integration , implementation and maintenance
services• Torex software applications• Hardware supply
• Enhance credibility in new name business bids• Sell Torex NewPos to European based QSR chains
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SavistaTremendous Growth Opportunity
NewPOS Progress from 2000
1,300
27,500
18,000
10,000
5,100
2,700
500750 1,000
6
15
25
44
53
63 6570
72
-
5,000
10,000
15,000
20,000
25,000
30,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
# o
f S
tore
s
0
20
40
60
80
100
120
140
of C
ou
ntrie
s #
of Stores # of Countries #
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McDonald’s Overview
• McDonald’s is one of the world’s largest retailers • 33,000 Restaurants• 119 Countries• 50 million transactions per day
• Standardisation of POS globally is essential to McDonald’s and is core to their IT strategy
• McDonald’s has selected Torex NewPOS as its global POS solution • POS Software and Annual Maintenance• Regional localization and development• Custom Development
• Savista is leveraging this prime position to extend its penetration into McDonald’s overall store systems spend• Customer Service extensions (Call Center, Loyalty, Reporting,
etc)• Integration services
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Torex NewPOS Product Overview
• Voted No 1 QSR enterprise product
• Built in Best Practices
• Unprecedented Flexibility
• Reliable
• Low Total Cost of Ownership
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Torex NewPOS Product Overview
• # 1 Rated POS in QSR• Hospitality Technology Magazine rated NewPOS # 1 in QSR and for large enterprise
users• Groundbreaking Customization Model
• Single universal code kernel• Flexible design adapts to all operating environments• Integrates into all known technology constructs• Supports change in and grows with client organization• Flexible Support Model allows client to manage application as desired
• Torex provides tools and training/certification to manage in-house; or• Outsource management to Torex or to client’s chosen 3rd party partner
• Enterprise Design• Scaleable object based architecture• Supports latest JAVA and Microsoft technology environments• Global Product (Operates in 63 countries today)
• Language• Currency• Tax, Fiscal, Regulatory, etc.
• Enterprise tools for application deployment and support allows local customisation by customer or partners
• Global Scale• Global distribution and support• International partner footprint
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Summary
• Positions Torex as leading Tier 1 provider on global scale
• Strengthens balance sheet through all equity funding
• Accel KKR taking strategic stake in Torex with planned Board representation
• Acquiring profitable business with tremendous organic growth potential
• Gaining McDonald’s as customer significantly enhances international credibility and presents major cross selling opportunities – they don’t come much bigger !
• Extends geographic reach with world class development team in South America and customer reference sites in 66 countries
• Earnings enhancing on stand alone basis – potentially through the roof combined !