Corpora Corpora te te Ove Over rvie vie w Q1 FY FY 17

Transcription

1 Corporate Overview Q1 Q4 FY FY 1817

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 Strategy Build a 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 3

4 Snapshot HQ in Canada + 25 countries Toronto Stock Exchange TSX:ENGH Dual Growth organic & acquisitions Enghouse Interactive Contact center software Enghouse Networks Telecom software Enghouse Transportation Transportation software ~1,500 employees Revenue Profitable growth 4

5 Interactive - Sector Dynamics Contact Center is at the front line of customer interaction, commoditization of the PBX market is driving on-premise, cloud and SaaS delivery models Microsoft s entry in both on-premise and cloud-based Unified Communications (Skype for Business) is a disruptive force as the market moves from IP Telephony to UC Mobile device and application proliferation requires an intelligent and seamless transition from self service to agent assisted interactions , chat and SMS interactions are increasingly popular but voice still accounts for 60% of interactions and are typically more complex and of higher value and importance The best person to handle the interaction may be staff in the front, middle or back office, driving convergence of contact center, UC and console solutions Integration of contact center, CRM and analytics are needed to enable customer experiences that are contextual, progressive and relevant 5

6 Interactive Portfolio Leading customer interaction solutions, in the cloud, hosted or onpremise to address specific market requirements Consoles 2-50 seats Channel GTM and OEM On-premise Mid-Market seats Channel GTM On-premise or hosted private cloud Enterprise s of seats Direct/Channel GTM On-premise, private cloud, or hybrid Cloud True multi-tenant cloud solution GTM through carriers and service providers Public, community, or private cloud 6

7 Interactive Portfolio MULTI-CHANNEL CONTACT CENTER Contact Center Enterprise Contact Center Service Provider Communications Center with Skype for Business Contact Center OnDemand Outbound Communication Suite Contact Center for Market Research CALL RECEPTION/CALL HANDLING Intuition Attendant Console (Avaya/Genband) Arc Pro Attendant Console for CISCO CC Console for Microsoft Skype for Business Andtek Console SELF-SERVICE Communication Portal Mobile IVR Navigator Knowledge Management Suite QUALITY MANAGEMENT Call Billing and Reporting (Enterprise & Cloud) Survey Management Quality Management Suite Workforce Management TELEPHONY & CRM INTEGRATION CTI Connect CTI for CRM VoiceXML Test Suite Computer Telephony Application Development Environnent Applications for Avaya CS1000 7

8 Networks - Sector Dynamics BSS/OSS market was valued at $17B in 2011 and is expected to grow to $48.5B in 2018, a CAGR of 16% from (Source Transparency market Research) Highly fragmented, open for more industry consolidation among 400+ vendors Industry growth fueled by next generation wireless subscriber growth, demand for smartphones, tablet devices, OTT applications and Internet of Things (IOT) Network convergence, cloud services and network function virtualization (NFV) will continue to gain momentum Big data and analytics technologies being deployed to tailor value-added services based on subscriber usage and behavior Continuing investment and roll out of next-generation network technologies 4G & LTE and new service offerings, while also dealing with customer services and retention Investment by service providers in cloud application and infrastructure technologies that enable high value, high margin enterprise business services offerings 8

9 Networks Portfolio Technology solutions to optimize performance for next generation network operators BUSINESS SUPPORT SYSTEMS (BSS) Wholesale Revenue Management MVNO Revenue Management Intelligent Routing Billing SaaS Customer Experience Management Electronic Invoice Management OPERATIONS SUPPORT SYSTEMS (OSS) Service Assurance Performance Management Inventory Management Resource Management Planning Configuration Management Geographic Information Systems NETWORK & VALUE ADDED SERVICES (VAS) Mobile VAS Routing & Control Security Call Recording 9

10 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 10

11 Transportation Portfolio Software solutions for Public Safety, Transit and Supply Chain TRANSIT OPERATIONS Fixed Route & Paratransit Scheduling Dispatch Workflow /Driver Management COMMUNICATIONS Fixed Route & Paratransit 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 11

12 ANNUAL RESULTS 12

13 Fiscal Year Results (ending Oct 31) TOTAL REVENUE $279m $308m $325m HOSTED & MAINTENANCE REVENUE $136m $152m $166m $220m $115m $180m $92m FY 13 FY 14 FY 15 FY 16 FY 17 FY 13 FY 14 FY 15 FY 16 FY17 ADJUSTED EBITDA PER SHARE $2.59 $2.87 $3.45 DIVIDEND PER SHARE (based on date of record) $0.52 $0.44 $0.60 $2.05 $0.36 $1.70 $0.29 FY 13 FY 14 FY 15 FY 16 FY 17 FY 13 FY 14 FY 15 FY 16 FY 17 Note¹: Compounded annual growth rate FY13 - FY17 13

14 Revenue Split - FY 17 REVENUE BREAKDOWN Hardware 2% REVENUE BY GEOGRAPHY Services 17% License 30% SCANDINAVIA 24% US 32% Hosted & Maintenance 51% APAC 6% CANADA 1% EUROPE 17% UK 20% REVENUE BY BUSINESS GROUP Asset Management Group $135m or 41% Interactive Management Group $191m or 59% Note: % rounding applied to charts and tables throughout this corporate presentation 14

15 Q1 FY 18 15

16 Q1 FY18 (3 months) Q1 FY 18 Q1 FY 17 % Change Revenue $85.1m $78.8m 7.9% Revenue by Segment Interactive Management Group $48.4m $47.6m 1.8% Asset Management Group $36.7m $31.3m 17.2% License revenue $25.8m $24.2m 6.6% Hosted & Maintenance revenue $42.6m $39.2m 8.8% Adjusted EBITDA¹ per diluted share $0.93 $ % Adjusted EBITDA¹ $25.3m $22.8m 11.0% Quarterly dividend - per common share, based on date of record $0.16 $ % Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE, foreign exchange gains and losses and special charges for acquisition related restructuring costs. 16

17 Q1FY18 (3 months) Q1 FY 18 Q1 FY 17 Cash spent on dividend $4.3m $3.8m Cash spent on acquisitions (net of cash acquired & holdbacks) $4.9m $0.4m Cash & Investments balance - beginning of period $130.3m $85.9m Cash & Investments balance - end of period $145.0m $88.3m Cash flow from operations $23.1m $10.7m Acquisitions XConnect Nov 28 SimaTech Dec 19 17

18 Quarterly Results REVENUE $ millions HOSTED & MAINTENANCE REVENUE $ millions $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 15 FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 18 ADJUSTED EBITDA $ millions DIVIDEND PER SHARE (based on date of record) $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $0.20 $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 15 FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 18 18

19 Acquisition Strategy Established track record of value creation through acquisitions To consistently generate positive operating cash flows to fund further growth, drive shareholder value while minimizing shareholder dilution Economic factors are favorable for acquisitions especially for smallcap 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 19

20 Recent Acquisitions NETBOSS TOLLGRADE XCONNECT CELLVISION Q2 FY 16 Q3 FY 16 USA PRESENCE Q4 FY 16 Q2 FY 17 USA SURVOX Q4 FY 17 Q1 FY 18 GERMANY SIMATECH Q1 FY 18 NORWAY SPAIN USA DENMARK NORWAY 20

21 THANK YOU! 21