Forward-Looking Statements Disclaimer Market and Industry Data

Transcription

1 Corporate Overview

2 Forward-Looking Statements Disclaimer Certain statements made in this presentation and the related materials may contain forward-looking statements, which are not historical facts, but are based on certain assumptions and reflect Enghouse s current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These risk factors are identified in Enghouse s Annual Information Form and other periodic reports filed with applicable regulatory authorities from time to time. Enghouse disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Market and Industry Data This document contains certain statistical, market and industry data obtained from industry publications and reports. Industry publications and reports generally indicate that information has been obtained from sources believed to be reliable, but do not guarantee the accuracy and completeness of such information. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. While we believe this data to be reliable, market and industry data is subject to variations and cannot be verified with certainty due to limits on the availability and reliability of data. Enghouse has not independently verified any of the third party data referred to in this document. 2

3 Snapshot Publicly listed (TSX:ESL), global software and services company focused on specific market segments Business Segments Interactive Management Group Customer interaction software solutions Asset Management Group Transportation Division Software based solutions for the public, private and public safety sectors Networks Division - Software and services for telecom providers Dual-growth strategy based on organic expansion and accretive acquisitions Financial Snapshot 6months 6months FY 14 FY 13 Revenue $102.4m $86.5m Adjusted EBITDA $0.97/sh $0.77/sh Dividend $0.16/sh $0.13/sh Global reach, 16 countries with 950+ employees 3

4 Strategy Build a larger, more diverse enterprise software and services company through: Growing our interaction management solutions business Interactive Management Group Growing our network solutions and transportation management software businesses Asset Management Group Consistently generating revenue growth and positive cash flow Completing selective acquisitions within existing markets and entering new strategic software markets on an opportunistic basis 4

5 Interactive - Sector Dynamics Contact Center s upgrade cycle to IP is less than ~ 50% complete (Source: Gartner Feb 2011) IP migration, multi media routing and driving technology refresh Mobile computing/workforce driving significant multi-channel requirements Trend to in-sourcing contact centers due to increasing costs overseas and political/nationalistic pressures Traditional PBX market becoming increasingly commoditized Microsoft s entry in the IP PBX could be a disruptive force (Lync Voice Platform) 5

6 Interactive Portfolio Leading customer interaction solutions, in the cloud, hosted or on-premise to address specific market requirements Multi-site CCSP Service Provider hosted, multi-tenant CCE Enterprise cloud or on-premise Scale Single-site Operator Console on-premise CC SME on-premise Functionality 6

7 Interactive Portfolio Leading solutions to maximize the value of customer interaction MULTI-CHANNEL CONTACT CENTER Contact Center Enterprise Contact Center Service Provider Communication Center w/microsoft Lync Contact Center OnDemand Outbound Dialer ATTENDANT/OPERATOR CONSOLE Intuition Attendant Console (Avaya/Genband) Arc Pro Attendant Console for CISCO Operator Console for Microsoft Lync ANDTEK Console SELF-SERVICE Communication Portal Knowledge Management Suite QUALITY MANAGEMENT Call Billing and Reporting Enterprise & Cloud Call & Computer Recording Agent Evaluation Quality Management Suite Workforce Management System 7

8 Transportation - Sector Dynamics Fragmented and competitive market. New technologies driving growth in systems and tangible cost benefits / savings Evolving tablet and smart phone technologies replacing traditional Mobile Data Terminals (MDT s). LTE networks to provide interoperability across geographies Cloud computing gaining momentum and driving replacement of legacy technology systems in a space traditionally slow to adopt Economic uncertainty and rising fuel costs driving increased ridership in both public and private sectors International political focus on terrorism and natural disasters driving continued investment in transportation and public safety systems 8

9 Transportation Portfolio Software based transportation and workforce management solutions for the public,privateandpublicsafetysectors TRANSIT OPERATIONS Fixed Route & Para-transit Scheduling Dispatch Workflow /Driver Management COMMUNICATIONS Fixed Route & Para-transit IVR Web Based Trip Planning PRIVATE TRANSPORTATION Coach and Tour Operations Management PUBLIC SAFETY Emergency Control Center & Dispatch (Police, Fire, Ambulance) Non Emergency Patient Transport FLEET & TRANSPORTATION MANAGEMENT Logistics Management Order Tracking Telematics Container and Vehicle Tracking and Monitoring 9

10 Networks - Sector Dynamics Top 25 business support system, OSS and service delivery platform vendors generated ~ 62% of revenue in open for more consolidation IT spend forecasted to be ~ 4.1% in 2013 and ~ 4.0% in 2014 (Source: Gartner) Highly fragmented and competitive space driven by deregulation, shift to wireless, lower cost VOIP vs. wire line subscribers, FTTH Mobile networks world-wide are expanding LTE coverage Telcos reluctant to adopt the cloud but adoption rapidly increasing Big data and analytics technologies being deployed to enable revenue growth and/or cost savings 10

11 Networks Portfolio Technology solutions to optimize performance for next generation network operators NUMBER PORTABILITY Global NP Data Routing Applications SERVICE DELIVERY CLOUD Billing Order Management Workflow Provisioning INTELLIGENT NETWORK PLATFORM Least Cost Routing Toll Free Wholesale Value Added Services GIS & NETWORK ANALYTICS Network Planning Engineering Inventory Business Intelligence NETWORK ROLLOUT Infrastructure Management Site Build-out Workflow Property Rentals 11

12 ANNUAL RESULTS 12

13 Fiscal Year Results (ending Oct 31) TOTAL REVENUE $180m RECURRING REVENUE $92m $123m $136m $59m $72m $78m $94m $41m $47m 53% 50% 48% 52% 51% FY 09 FY10 FY11 FY 12 FY 13 FY 09 FY10 FY11 FY 12 FY 13 ADJUSTED EBITDA PER SHARE $1.69 DIVIDEND PER SHARE (based on date of record) $0.29 $1.26 $1.35 $0.23 $0.18 $0.68 $0.85 $0.11 $0.14 FY 09 FY 10 FY 11 FY 12 FY 13 FY 09 FY 10 FY 11 FY 12 FY 13 Note¹ : CAGR Compound annual growth rate 13

14 Revenue Distribution FY 13 Hardware 3% REVENUE BREAKDOWN Services 13% License 33% EUROPE 26% REVENUE BY GEOGRAPHY CANADA 5% APAC 8% US 38% Recurring 51% UK 23% REVENUE BY BUSINESS GROUP Interactive Management Group S146.1m Asset Management Group $33.8m 14

15 6 MONTHS RESULTS -FY 14 15

16 6 months FY 14 Highlights 6 months FY 14 6 months FY 13 Revenue - increase of ~ 18% over FY 13 $102.4m $86.5m Revenue by Segment Interactive Management Group $81.7m $73.0m Asset Management Group $20.7m $13.5m License revenue - increase of ~ 21% over FY 13 $34.6m $28.7m Recurring revenue - increase of ~ 21% over FY 13 $53.4m $43.9m R & D expense as a % revenue 17.7% 17.5% Adjusted EBITDA¹ per diluted share - increase of ~ 26% over FY 13 $0.97 $0.77 Adjusted EBITDA¹ - increase of ~ 28% over FY 13 $26.0m $20.3m Note¹: Adjusted EBITDA: income before income taxes adjusted for depreciation of PPE, amortization of acquired software and customer relationships, finance income/expenses, other income, and special charges for acquisition related restructuring costs. 16

17 6 months FY 14 Highlights Quarterly dividend (cumulative) - per common share, based on date of record 6 months FY 14 6 months FY 13 $0.16 $0.13 Cash spent on dividend $4.2m $3.4m Cash spent on acquisitions (net of cash acquired) $13.5m $16.8m Cash & Investments balance - beginning of period $90.3m $83.7m Cash & Investments balance - end of period $101.0m $80.9m Acquisitions Visionutveckling Albatross Locus IAT IT Sonix Nov 4 th March 3 rd Nov 1 st Dec 1 st March 1 st 17

18 QUARTERLY RESULTS - Q2 FY 14 18

19 Q2 FY 14 Highlights Q2 FY 14 Q2 FY 13 Revenue - increase of ~ 23% over Q1 FY 13 $55.0m $44.5m Revenue by Segment Interactive Management Group $43.9m $36.3m Asset Management Group $11.1m $8.2m License revenue $18.9m $13.6m Recurring revenue - increase of ~ 21% over Q2 FY 13 $28.3m $23.4m R & D expense as a % revenue 17.2% 17.5% Adjusted EBITDA¹ per diluted share - increase of 30% over Q2 FY 13 $0.52 $0.40 Adjusted EBITDA¹ - increase of ~ 30% over Q2 FY 13 $13.9m $10.7m Note¹: Adjusted EBITDA: income before income taxes adjusted for depreciation of PPE, amortization of acquired software and customer relationships, finance income/expenses, other income, and special charges for acquisition related restructuring costs. 19

20 Q2 FY 14 Highlights Quarterly dividend (cumulative) - per common share, based on date of record Q2 FY 14 Q2 FY 13 $0.08 $0.08 Cash spent on dividend $2.1m $1.7m Cash spent on acquisitions (net of cash acquired) $11.3m $6.8m Cash & Investments balance - beginning of period $100.1m $80.1m Cash & Investments balance - end of period $100.0m $80.9m Acquisitions Locus IT Sonix March 3 rd March 1 st 20

21 Quarterly Results 21

22 Acquisition Strategy Established track record of value creation through acquisitions To consistently generate positive operating cash flows to fund further growth and drive shareholder value Economic factors favorable for acquisitions especially for small-cap companies Target companies in the $5m - $50m revenue range preferably with strong recurring revenue Geographic, product or scale expansion Mission critical solutions High barriers to entry Objective is for a cash payback within 5-6 years 22

23 Recent Acquisitions Albatross Dec, 2012 Q1 FY 13 (Networks Locus March, 2013 Q2 FY 13 (Transport) Safeharbor Sept, 2013 Q4 FY 13 (Interactive) Andtek Oct, 2013 Q4 FY 13 (Interactive) IAT Nov, 2013 Q1 FY 14 (Interactive) IT Sonix AG March, 2014 Q2 FY 14 (Interactive) Basset July, 2014 Q3 FY 14 (Networks) 23

24 THANK YOU! 24