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Annual General Meeting June 24, 2020 Network Security D a t a C - PowerPoint PPT Presentation

Annual General Meeting June 24, 2020 Network Security D a t a C e n t r e 5G 5G Integration L I F E C YC L E S E RV I C E S Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of


  1. Annual General Meeting June 24, 2020 Network Security D a t a C e n t r e 5G 5G Integration L I F E C YC L E S E RV I C E S

  2. Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements include statements regarding key industry trends and growth strategy. Any such forward-looking statements are based on assumptions made by Pivot in light of its experience and its perception of historical trends, current conditions and expected future developments, including the continued growth in IT spending, Pivot's continued financial liquidity to invest in its business and pay quarterly dividends, as well as other factors Pivot believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform to Pivot's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause Pivot's actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: negative impact of the COVID - 19 pandemic on the industry and Pivot’s operations and those of its suppliers and customers, uncertainty in the global economic environment; the possibility that Pivot will not be able to maintain its liquidity, and the risks described in the Company's Annual Information Form for the year ended December 31, 2019 under the heading "Risk Factors" available at sedar.com. The "forward-looking statements" contained herein speak only as of the date of this presentation and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise. Non-GAAP Measures Certain financial measures contained in this presentation are not recognized under IFRS and are identified by the notation “Non GAAP measure”. A description of these non -GAAP measures and a reconciliation to relevant IFRS measures appear in the Company’s MD&A for the relevant period (available on the Company’s website or sedar.com). 2 Private and Confidential

  3. Pivot At A Glance ($ CAD Millions except otherwise noted) A Leading Provider of IT Products and Services 2019 Adjusted 2019 Revenue ¹ Q1 2020 Q1 2020 Adjusted EBITDA 1,2 EBITDA 2 Revenue $1.6B CAD $35.6M CAD $376.8 CAD $5.4M CAD Serving a $280 Billion Global Market Knowledge Technology Growing Customers Based Global Touch Partners Services Workforce ~2000 and Reach 400+ Portfolio 800 3 1. Fiscal 2019 re-presented in Canadian Dollars Private and Confidential 2. Non GAAP measure

  4. Go-to-Market – More Than A VAR Supplier Operating Model Basic Offer Optimize Offer Complex Offer Outcome Offer Complex Offer LEVEL 1 SUPPLIER LEVEL 4 SUPPLIER LEVEL 2 SUPPLIER LEVEL 3 SUPPLIER Outcome- Product- Focused Focused Operate, Adopt, Optimize Managed Services Outcome Offers and Platforms Product-Attached Services Product-Attached Services Great Product Great Product Great Product Op Ex Cap Ex Source: Tsia 4 Private and Confidential

  5. Leveraging Our Strengths Through Strategy Strengths Strategy ✓ Scale ✓ Build on core products and services business ✓ Sales force ✓ Enhance services/solutions ✓ Experienced leadership team capabilities and portfolio ✓ Vendor relationships ✓ Drive a commercial transformation to expand addressable market ✓ Knowledge ✓ Improve cost management ✓ Access to customers ✓ Enterprise B2B eCommerce platform ✓ Leverage preferred partnership agreement with Intel ✓ Global reach 5 Private and Confidential

  6. Solutions and Partners Enterprise Cloud Application Workplace Edge Network Modern Desktop Wifi (6) SDWan Public Database Mobile DC Network Private Mobility Private OT Collaboration Route / Switch uCPE/NFV Hybrid IoT Contact Center SDN WAN Connectivity Data Mgmt AI/ML Security 6,300 + certifications across 800 + manufacturers Private and Confidential 6

  7. Service Channels Overview Integration Workforce ▪ ▪ Fulfillment & Management Perm/Direct Hires ▪ ▪ Depot & Disposition Enterprise Contract Staffing ▪ ▪ Imaging & Configuration Contract Staffing ▪ ▪ Logistics & Coordination Executive Level Hires ▪ Remote Hires Professional Deployment Managed ▪ ▪ ▪ Consulting Onsite/Remote Install, First Call Support ▪ ▪ Assessment Move, Add & Change Service Desk as a Service ▪ ▪ ▪ Implementation Low Voltage/Fiber ITAM as a Service ▪ ▪ ▪ Resident Maintenance & Break-Fix Digital Operations Center - ▪ ▪ Optimization Smart Hands NOC/SOC 7 Private and Confidential

  8. Key Industry Trends Growth Strategy High Edge Solutions & Services Partner Build Cloud Services Strategic Priority Data Management Buy De-Prioritize Security Low Urgency High Private and Confidential 8

  9. 2019 Performance ($ CAD Millions) Continued gross margin strength, EBITDA growth on lower revenue Gross Profit Adjusted Revenue Gross Profit Margin % EBITDA 1 Non-Major Majors 219.1 217.7 13.6 Net Smart Edge spend 211.4 12.0 Adjusted EBITDA 11.2 758 2.9 533 308 3.1 IFRS 16 improved 2019 Adjusted 6.6 EBITDA by $6.9 million 35.6 1,297 31.3 1,232 1,205 20.1 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 1. Non-GAAP measure 9 Private and Confidential

  10. Q1 2020 Performance ($ CAD Millions) Gross margin improved, EBITDA growth on lower revenue Gross Profit Gross Profit Adjusted Revenue Margin % EBITDA 1 Non-Major Majors 52.1 Net Smart Edge spend 13.8 48.7 12.5 Adjusted EBITDA 32 75 0.4 9.7% 345 5.4 315 4.4 Q1 F19 Q1 F20 Q1 F19 Q1 F20 Q1 F19 Q1 F20 Q1 F19 Q1 F20 1. Non GAAP measure 10 Private and Confidential

  11. Liquidity & Valuation ($ CAD Millions except ratios) Adjusted Debt 1 TTM 106.0 EV/Adjusted EBITDA 6.9 98.1 77.9 EV**/Adjusted EBITDA 3.9 72.9 Increase due to FX Notes: ** - EV calculated using Adjusted Debt instead of standard net debt definition Dec-17 Dec-18 Dec-19 Mar-20 Increase in Adjusted Debt 1 from December 2019 to March 2020 due Key Metric Dec-17 Dec-18 Dec-19 Mar-20 to foreign exchange impacts. Actual Draw on credit facility 2 170.3 135.1 138.7 188.4 Notes: Adjusted Debt 1 98.1 106.0 72.9 77.9 1 - Adjusted Debt is a non-GAAP measure. It normalizes the impact TTM Adjusted EBITDA 3 of the changes in working capital. It is calculated as current 31.3 20.1 35.6 36.5 liabilities less current assets plus long term financial liabilities, TTM Interest Expense 7.1 7.9 8.0 7.5 excluding Lease liabilities from IFRS 16. Adjusted Debt: EBITDA Adjusted Debt:Adjusted EBITDA 1 3.13 5.27 2.05 2.13 ratio is also a non-GAAP measure. Net Interest Coverage 4.41 2.54 4.45 4.85 2 - Drawn on ABL Facility is actual amount drawn on the facility at period end. 3 - Adjusted EBITDA is a non-GAAP measure. 11 Private and Confidential

  12. Stock Overview From Jan 2017, PTG Total Return is 34.2% vs. S&P/TSX Composite of 14.1% TSX Symbol: PTG Dividend: $0.04 per share paid quarterly, Yield ~9.3% Total Shares Out: 38,359,650 (at May 11, 2020) Insider Ownership: ~1,700,000 Market Cap: ~$64.4 million (at June 18, 2020) $77.9 million 1 (at March 31, 2020) Adjusted Debt: $1.97/ $0.78 52-week High/Low: Founded: 2010 1 definition in MD&A • Ongoing NCIB, purchase history: • Since May 2016, PTG dividend: • Share Buy- • 960,600 shares in 2018 $0.04 paid quarterly • back Program : • $0.16 per share per annum • 237,310 shares in 2019 • Yield: 9.5% (at June 18, 2020) • 824,115 shares in 2020 (to March 27) 12 Private and Confidential

  13. Questions Network Security D a t a C e n t r e 5G 5G Integration L I F E C YC L E S E RV I C E S 13

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