CSG SYSTEMS INTERNATIONAL, INC. 1
Safe Harbor This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially because of factors mentioned in this presentation, in management s discussion and analysis section of the company s 2012 Form 10-K or in other reports and filings with the Securities and Exchange Commission. We undertake no duty to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. In addition, all non-gaap/proforma numbers are reconciled in tables under the Investor Relations section of our website at www.csgsystems.com. 2 2
Turning what happens in the network into a personalized customer experience CSG helps the world s leading service providers provide a more personalized customer experience while turning transactions into revenues 3
Creating Long-term Shareholder Value Market leader in complex and dynamic markets Long-term relationships with global leaders Company reinvests to ensure technology leadership position Growth opportunities leveraging technology assets Strong business model with recurring, predictable revenues plus strong cash flows 4
CSG at a Glance CSG International provides business-critical software systems and services to our clients, who depend upon us to generate revenue and maximize value from their customers. 2nd largest pure-play BSS/OSS provider worldwide 500+ clients Support majority of world s 100 largest Tier 1 providers 3,600 employees in 24 countries Support for multiple vertical markets: cable, wireless, fixed-line, satellite/dbs, utilities, media/entertainment, retail and more Multiple delivery models: software, service bureau, managed services, hybrid & professional services 5
CSG Strategy: Focus on Execution We create recurring relationships with our clients by listening to their needs and solving their business challenges; We expand our product and services portfolio with a strong focus on continuous innovation; We increase our value proposition to our clients through continuous improvement; We deliver on our commitments; We bring new skills and talents to market to help manage the pace of change in our clients and our own businesses. 6
CSG Business Framework Products/Solutions Build Software Build Software Workforce Management Interconnect Mediation Content Direct Marketing Tools Build Software What we Do Implement Software Maintain Software Maintain Implementation Operate Software Operate Hardware 7
Deeply Embedded Client Relationships Clients representing 45% of our revenues are contracted through 2017 Client Customers Renewal Date Customer Relationship (in years) 16+ mm March 2017 20+ 6+ mm April 2017 20+ 14 mm Dec-2017 15+ Multi-Year Contracts Minimum financial guarantees Generally, annual price escalations of 1-2% pre-wired in the contracts Get Broader and Deeper in Accounts Mission critical services deeply embedded in customer operations Deep domain knowledge provides CSG new opportunities for products and services Establish a trusted advisor relationship Long-term contracts provide recurring revenue and strong cash flow visibility Indicative List of 10+ Year Customer Relationships 8
The Consumer Wants Control Network Content Studio Content Retailers Service Provider Games/Apps Voice/Data/Video Anytime, Anywhere On Any Device Social Media OTT Aggregators 9
CSG Helps Bring It Together Transaction Mgmt. Platforms & Customer Care Mediation (TSM) Outsourced Processing (ACP) Insight Enablers Interaction Channels Wholesale (WBMS) Convergent (Singl.eView) Interaction Tracking & Profile Mgmt Transaction Broker Technician Call Center Operations Enablers Field Force Mgmt. Wholesale Financial / Risk Mgmt. Reporting Customer Analytics Kiosk Direct Mail / Statement Service Provisioning Sales/Marketing Enablement IVR / SMS Web / E-Mail 10
Multiple Growth Opportunities We are on a path and we continue to execute against our plan Geographies Diversify Customers Verticals Monetize Our Customer Relationships Cross-sell existing products to our >500 customers Look for new products / services to leverage our base Maintain Strength In Our Core Software & Services Continue R&D investment Focus on renewals / license sales with our sales organization Know the customer be ready for where they are going 11
Financial Characteristics Predictable Revenues with High Visibility Operational Scale Strong Cash Flows Strong Balance Sheet Top 3 clients into 2017; Each year 80-85% visibility 500 clients; 3,600 staff 5-yr. avg. 08-12 In millions CFO $115 FCF $89 Low cap ex spend Total in millions Debt $296 Cash $173 Net Debt $123 See reconciliations on Investor Relations section of website: www.csgi.com 12
Creating Long-term Shareholder Value Market leader in complex and dynamic markets Long-term relationships with global leaders Company reinvests to ensure technology leadership position Growth opportunities leveraging technology assets Strong business model with recurring, predictable revenues plus strong cash flows 13
Q & A 14