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Torex Retail Acquisition of Savista April 2006

Torex Retail Acquisition of Savista

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Torex Retail Acquisition of Savista. April 2006. 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 - PowerPoint PPT Presentation

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Page 1: Torex Retail  Acquisition of Savista

Torex Retail Acquisition of Savista

April 2006

Page 2: Torex Retail  Acquisition of Savista

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

Page 3: Torex Retail  Acquisition of Savista

Page Page 33

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

Page 4: Torex Retail  Acquisition of Savista

Page Page 44

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

Page 5: Torex Retail  Acquisition of Savista

Page Page 55

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

Page 6: Torex Retail  Acquisition of Savista

Page Page 66

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

Page 7: Torex Retail  Acquisition of Savista

Page Page 77

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 #

Page 8: Torex Retail  Acquisition of Savista

Page Page 88

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

Page 9: Torex Retail  Acquisition of Savista

Page Page 99

Torex NewPOS Product Overview

• Voted No 1 QSR enterprise product

• Built in Best Practices

• Unprecedented Flexibility

• Reliable

• Low Total Cost of Ownership

Page 10: Torex Retail  Acquisition of Savista

Page Page 1010

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

Page 11: Torex Retail  Acquisition of Savista

Page Page 1111

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 !