Jak dostat svou technologickou firmu z Brna až do Japonska? Obchodní a marketingový stratég úspěšné společnosti Y Soft vám prozradí, jak šli na globální expanzi. Poznáte, že vaše firma není ani moc mladá, ani nestabilní nebo malá na expanzi do zahraničí. Stačí jen vědět, jak na to.

1. LET’S GO GLOBAL
Richard Brulik
JIC Open days

2. Y SOFT CORPORATION
Established in 2000
Student spin-off
YSoft SafeQ started in 2003
First 5 project were unsuccessful
$25m revenues, $29m sales
250+ employees worldwide
Globally Operating Company
Global Product
Global Service
Global Team
11 subsidiaries on 5 continents
Enterprise Market
8000+ installations
110+ countries, 6 continents
20+ Fortune 1000 customers
80+ Czech Top 100

3. Y SOFT REVENUES
25.0
20.0
15.0
10.0
5.0
0.0
JIC
JIC
Exit
International
Expansion
0.2 0.6 1.9 2.8 3.3 5.4
7.8 8.8
12.2
21.9
25.0
2003 2004 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2010/12 2012/13 2013/14

4. RIGHT BUSINESS MODEL SETUP
Indirect Sales Model (enterprise software)
Channel Managers
Direct Sales is too expensive
Global partners
Difficult to launch global partnership immediately
Start in one country (local market)
Start locally with global partners
Konica Minolta
Xerox
Samsung

5. FIRST STEP: CEE
Relatively simple expansion
Localization is big benefit
Especially user interface
One exception – Hungary
No success initially
Daughter company set up in 2008

6. SETTING UP SUBSIDIARIES
Local Partnership
Somebody wants to become Y Soft local distributor
It matches market expansion plan, the person is “good”
Example:
Y Soft Hungary started with 20% + 20% for local partners
Y Soft would always keep major stake
Later, a buy-back is possible
One partner left, so Y Soft has now 80%
Buyback in cash or in shares of HQ
Hungary, Japan, USA

7. EXPANSION IN EUROPE
Challenge of the Czech Republic
Added value business with high service requirements
It took Y Soft four year to get good business in Germany
Today, Germany and US are the biggest markets
How we convinced first partner in Germany
Innovative product that would fit a whole in the market
Funded head to provide support
Funded head concept continued
In the UK and France

8. EU SUBSIDIARY VS. EMPLOYEES
SUBSIDIARIES
Advantages
Straight forward taxation
Credibility for business partners
Disadvantages
Impairment risk
Expensive overhead
Establish company
Accounting & tax
Higher legal costs
EMPLOYEES
Advantages
Easy to set up
Operationally low cost
Disadvantages
Risky (you cannot bankrupt)
Image

9. WHOLLY OWNED SUBSIDIARIES
Y Soft Japan established in 2008
Local Partnership model
Later, local partner exchanged shares with HQ shares
YJP was the first wholly owned subsidiary
Y Soft Singapore (100%)
Wholly owned by Y Soft Japan
Model with contractors (China, Australia)
Y Soft Latin America (100%)
Contractors in Chile, Peru

10. REPRESENTATIVE OFFICE
Y Soft Middle East (Dubai, UAE)
Representative office
Employs people, can grant working visa (UAE)
Can have local account (we use CZ account)
Have office, and normal operating expenses (paid by HQ)
Cannot invoice (billing goes from HQ)
Advantages & disadvantages
No consolidation necessary
Does not provide safety net of bankruptcy

11. ACQUISITIONS
United States of America (2011)
Five employees
Local partner kept 30% stock
Exited in 2013, cash buyback of 26%
Australia (2013)
11 employees
100% buyback
Phased buyback approach – based on future results
Part of cash now, part deferred after year 1 and year 2
Option to convert part cash to HQ stock (stock option program)

12. FINANCIAL MANAGEMENT
Make sure your accounting practices are at good shape
Closing books by 5th working day in a month at the latest
Substantial items correctly accrued and/or deferred
Management consolidation
Do it on monthly basis
Set a target date (YSoft:11th day in a month)
Global cash management
Financing subsidiaries
Capital contributions
Account receivables/payables
Deferred income
Loans (intragroup, external)

13. SUMMARY
Indirect Sales, grow inside existing ecosystem
For small offices in EU, consider employment
Subsidiaries: form them initially in partnership
Acquisitions: phased approach
Have finance in really good shape (monthly consolidation)

15. Thank you
Richard Brulik
E: Richard.Brulik@ysoft.com
L: linkedin.com/pub/richard-brulik/
W: ysoft.com